Savage city taxes could rise about $86 next year on an average home
A memo for the Savage City Council’s Monday, Sept. 14 work session estimates that under the preliminary 2027 city tax levy, city property taxes on residential properties valued $250,000 to $800,000 would rise about $45 to $173 a year. For a home at the 2026 average value of $439,200, the staff chart estimates an increase of $86 a year, or $7.17 a month.
The memo says the preliminary 2027 levy is projected to rise $1,919,000, or 7.19%, to $28.6 million from $26.7 million in 2026. The memo, prepared by City Administrator Brad Larson and Finance Director Matt Burt, lists a 9.44% increase in the general operating levy and a 4.73% decrease in the debt service levy.
The final health insurance renewal averaged an 11.5% increase, not the estimated 30%, cutting about $200,000 from the budget. Three additional full-time firefighters the council directed staff to include added about $435,000.
Staff also determined the debt service levy could be reduced by an additional $435,000 and asked the council for direction on two options. Option 1 keeps the levy and temporarily directs the $435,000 toward future facilities, parks and equipment needs. Option 2 cuts the debt service levy by that $435,000, a total reduction of about $635,000, or 15.03%, which the memo says would lower the overall increase from 7.19% to about 5.56%. The packet does not show the council’s choice.
Under Minnesota law, the memo says, the council may reduce the preliminary maximum levy after adoption but may not increase it.
What's next: The council is scheduled to adopt the preliminary maximum levy on Monday, Sept. 21, with final budget and levy adoption scheduled for December.
I also run PriorLake.RealEstate, which has an interest in housing and property tax news.