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Limiting property tax hikes across Minnesota
Cities around Minnesota are considering raising property taxes as they grapple with inflation and new federal mandates as they try balance their budgets. FOX 9’s Emily Pofahl has the details.
EDEN PRAIRIE, Minn. (FOX 9) - Property owners across the Twin Cities metro could soon be paying significantly more in property taxes, and even then, some services may still get cut.
Nearly two dozen metro cities and counties are considering higher-than-average property tax increases, with proposals ranging from 2.9% in Eden Prairie to as high as 21% in Dakota County.
Eden Prairie's proposed property tax increase
What we know:
While some metro cities and counties are eyeing property tax hikes as high as 12, 16 and 21%, the Eden Prairie city council Tuesday is set to vote on a proposed maximum increase of 2.9%.
Eden Prairie, a city of more than 60,000 people, is set to grow its budget by 5% in 2027 – from $50,119,782 to $51,570,792.
The Minnesota Budget Project is tracking sizable proposed property tax increases across the region, with some as high as 12, 16 and 21%. Experts point to two main drivers squeezing local budgets: new unfunded federal mandates hitting counties, and rising inflationary and healthcare costs at the city level.
"The picture is a little closer to the household level," said Carly Ekstrom, Deputy Director of the Minnesota Budget Project. "The cost of providing health insurance to city employees, as well as other dynamics like inflation, bringing up the costs of materials to provide services."
Eden Prairie isn't immune to those pressures. A budget presentation prepared by city staff shows employee health insurance premiums in the city have gone up 16.5%.
"All the things that were named are pressures that cities face today, and we face them too," said Eden Prairie Mayor Ron Case.
Why you should care:
Even so, Eden Prairie has managed to keep its proposed increase far below the metro average. Mayor Case credits a long-standing culture of fiscal discipline — including a switch to LED city lighting nearly 10 years ago — as part of how the city has kept costs down.
"A culture of innovation, creativity. Just always how can we do more with less," said Case.
Growing membership at the community center has also brought in additional revenue.
"We are steadily growing which is always a good thing," Case said.
How Eden Prairie compares
Over the past four years, Eden Prairie's property tax increases have ranged from about 4% to 7%. Mayor Case says the city has maintained a steady track record.
"We've had a real stable run here for I'd say the last 15 years at least," said Case.
Case is clear that there isn't any single reason why this year's proposed hike is lower, describing it as a balancing act that's unique to each city.
What we don't know:
Proposed property tax increases across the metro are not finalized. City and county leaders will vote on the proposals and take public feedback this fall, with final numbers expected to be locked in by December.