Saint Louis Park board certifies $44 million preliminary levy; district warns tax rate may edge up

The Saint Louis Park School Board on Sept. 30 certified a preliminary maximum levy of roughly $44.0 million for fiscal year 2027, approving the amount unanimously. The district said the dollar levy increases by about 1.21% over the previous year, but noted that a modest increase in the district’s tax rate is possible when property valuations are factored in.

Why it matters: The preliminary levy sets the maximum property-tax revenue the district may collect next year and determines the district’s place on truth-in-taxation notices sent to property owners. The board and finance staff said state formulas, tax increment financing (TIF) changes, abatements and voter-approved debt service drive levy calculations and limit the board’s flexibility to increase operating revenue.

Key points from the presentation - Levy total and change: The preliminary levy was presented as $44,000,005 (approximately) and described as a 1.21% increase over last year; the board certified the levy at the “maximum” level required for state and county processing. Director Magnuson opened the item noting “it is the last day we could certify the levy.” - Fund breakdown: The general fund levy is effectively flat to declining slightly; the debt-service levy rises by about $771,000 to cover principal and interest on existing voter-approved bonds; the community-service levy shows a small decline. - Timing and adjustments: Officials said abatements and TIF releases altered taxable values and that some abated taxes will be captured in future years, creating timing effects on district revenue. Finance staff explained that corrections to enrollment or valuation automatically recalibrate levies and state aid in subsequent years. - Specific line items: Safe Schools funding remains a small, longstanding formula amount (cited at about $36 per student) and technology levy growth is limited but benefits from increased property wealth; other items discussed included OPEB (other post-employment benefits) levy needs declining due to trust funding and occasional reemployment-insurance adjustments.

Legal and process context - State formulas and equalized levies: Presenters reminded the board that many levy components are set by Minnesota statute and equalized formulas; the board cannot unilaterally increase those formula-based levies. The final dollar levy will be set at the December truth-in-taxation hearing after parcel notices are sent in November.

Action and next steps - Action: The board approved the preliminary levy at the recommended maximum amount; vote 6-0. - Next steps: Parcel-specific notices will go out in late November; the district will hold a truth-in-taxation hearing in December (district staff mentioned December 9 as the hearing date) when the board will adopt the final levy.

Discussion and community context Board members stressed the limits on school-district taxing authority compared with city or county levies and urged advocacy at the state level for funding changes. Staff and board members discussed how abatements and TIF adjustments affect the district’s revenue timing and how the finance advisory committee will continue to review budget assumptions.