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The 2027 budget is on the agenda for Monday’s South St. Paul City Council work session with potential reductions to the property tax increase.
Background: In September, City Council approved an 11.49% preliminary property tax increase for 2027 on a 6-1 vote. It amounts to a $210 annual increase for a median value home. It’s the largest increase in the area.
Process: Every city is required to approve a preliminary increase in September, which is mailed out to residents in November. Then the city approves a final increase in December which can be lowered from the preliminary number but not increased.
Why: The property tax increase is primarily driven by increases to the general fund, the Doug Woog Arena fund, and the City Infrastructure fund. Additionally, the city is looking at bonds in 2027 to pay for the Northview Pool and new public works facility, which brings on debt starting in 2028.
Debate: Staff is looking for direction from Council and proposes a range of options, from sticking with the preliminary increase to cutting it nearly in half. Any decrease would result in cuts somewhere and likely mean a spike in 2028 taxes to catch up. The agenda packet lays out multiple scenarios:
| Scenario A | Scenario B | Scenario C | Scenario D | Scenario E | Scenario F | |
| 2027 property tax levy increase | 11.49% ($210) | 6.03% (>$100) | 6.63% ($112) | 7.02% ($120) | 8.36% | 9.99% |
| 2028 property tax levy increase | 11.43% | 17.17% | 16.51% | 16.08% | 14.65% | 12.95% |
Note: Property taxes are ridiculously complicated. We explored property tax complexities a few years ago, which might help explain some of the nuance (or just muddy the waters).
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