In a time of inflation and cost increases, holding the line can be nice.
Meeting Monday, Sept. 22 in city hall, the St. Paul Park Council set 2027 preliminary city tax levy at $3,377,264, representing a 1.8 percent increase over 2026. The news means St. Paul Park residents can expect a tax reduction as it relates to the city's portion of property taxes for a median household valuation, defined as $295,700.
The tax levy is calculated by dividing the levy amount by the tax base, which results in a property tax rate. That property tax rate is then set against the taxable value of the property, which results in an amount owed. Other taxing jurisdictions besides a local municipality include the school district, county, and Met Council, which each set their own tax levies. Individual tax bills can include more than one taxing jurisdiction, with homeowners encouraged to inspect their tax bills for details on each taxing jurisdiction.
Back at Monday’s council meeting in St. Paul Park, meanwhile, the city levy discussion was opened by Mayor Keith Franke.
“Alright, on to resolution 1784, setting the preliminary tax levy and budget,” Franke said. With that, St. Paul Park Finance Director Dawn Monahan came to the podium.
“Alright, this is a just a review from the workshop of the base budget,” she said to begin.
By counting interest revenue in the budget and saving $97,000 in expenses elsewhere, the city was able to realize a savings for 2027 of $207,000, reducing the overall property tax burden. The total 2027 operational budget stands at $2,817,855, a 4.59 percent decrease from 2026. Monahan recommended capping Local Government Aid (LGA) from outside at $800,000 and putting the remainder in the Capital Equipment Fund.
The 2027 debt levy at St. Paul Park, meanwhile, is $179,574, up just $460 from 2026, while the capital levy is $200,000. All told, this brings the total levy at St. Paul Park to $3,377,264, a 1.8 percent increase from 2026 and significantly below many other communities in the Twin Cities metro area. The news means a $23 net drop in taxes for a home valued at $295,700 in 2027 as compared with 2026.
“It is assumed by Washington County that the median home price in St. Paul Park did not change from 2026 to 2027, but it is estimating that the citywide taxable value is increasing by 4.1 percent,” Monahan said.
While not a guarantee of a decrease in individual assessments based on property value, it meant a decrease in local St. Paul Park property taxes. An alternative levy presented by Monahan would have set the preliminary levy at 1.22 percent, allowing for more homeowner tax savings, but wouldn’t allow the city to save as much toward a fire truck, deemed a priority.
“If the tax impact is already negative, I would like to see more put towards the fire truck,” Council Member Tim Conrad said.
The St. Paul Park Council unanimously adopted the preliminary tax levy of $3,377,264 after Monahan’s presentation, allowing both a decrease in taxes and savings for a fire truck. A new police officer and a slight raise for firefighters are included in the proposed 2027 budget.
As to local government generally, preliminary levies are set in September, prior to finalization in December. Other area governments that also recently set their preliminary tax levies include Newport with a 4.9 percent increase Sept. 17 and Grey Cloud Island Township, at a 3.3 percent increase on Sept. 9. The 3.3 percent increase over 2026 at Grey Cloud represents a decrease over previous, after spending a few years of catch-up in relation to inflation and refilling its capital fund for roads.
The proposed 4.9 percent increase at Newport meanwhile represents a drop from an initial number of 8 percent before revision, while a 2.1 percent decrease in median home value means a median home, defined at $334,400, can expect a decrease in city property tax of $27.26 under the recommended levy amount.
Cottage Grove’s initial 2027 tax levy, meanwhile, was set Sept. 2 for a 10.12 percent increase, rising to a 10.25 percent increase when the separate HRA levy is factored in. Cottage Grove’s long term levy comparison shows a growing overall tax capacity driven by overall property valuations from things like new homes, leading in turn to an increased demand for services, offset by taxes.
The vast majority of tax dollars in Cottage Grove go to public safety costs, followed by public works.
As for Washington County meanwhile, it recommended a tax levy increase of 7.9 percent to raise $160 million in all, while South Washington County Schools was due to set its preliminary district levy at the Thursday, Sept. 24, school board meeting, with official numbers still pending.
Final tax levies for South Washington County residents will be set in December after local Truth in Taxation hearings. Preliminary tax levies can go down once set, but not up.