Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxes And Budget topic
No spam. Unsubscribe anytime.
Minnehaha County auditors present levy forecast and opt-out strategy as commissioners weigh capacity resolution
Summary
County auditors told commissioners the 2026 levy is preliminarily estimated at about $2.935 per $1,000 and presented a five-year forecast that layers smaller opt-outs to avoid a large future spike; staff recommended not levying new opt-outs for 2026 but asked whether the commission wants to pass a $1.5 million opt-out capacity resolution by the July 15 statutory deadline.
Minnehaha County auditors presented a preliminary 2026 property-tax levy and long-range forecast Tuesday, urging commissioners to consider small, layered opt-outs rather than a single large levy to cover rising public-safety and justice costs.
Susan Beeman of the auditor's office told the Board of Commissioners the county's three primary levies (general, building and bond redemption) currently estimate to about $2.935 per $1,000 of assessed value, down slightly from 2.97 in 2025. Using a $300,000 example home, she showed the levy and valuation changes would translate to roughly a $32 increase under current assumptions.
Beeman said the highway fund and large multiyear projects drive year-to-year variation, noting the highway fund ended 2024 with a cash reserve of just over $11.1 million and that a recently approved wheel-tax increase added about $199,000 in projected highway revenue for 2026.
Why the opt-out question matters, she said, is the county's long-range forecast: with growing public-safety costs, the expansion of jail capacity (UC 3) and the expiration of older opt-outs in the coming decade, the county's modeling shows the risk of a steep one-year spike in opt-outs if capacity is not layered in advance. Beeman recommended the commission consider passing a resolution by the statutory July 15 deadline to create capacity (but not necessarily levy) for a new opt-out, and she framed $1.5 million as a placeholder figure the auditor's office had included in the forecast.
"We have not included any new opt out in the proposed budget at this time," Beeman said. "But having capacity is partially why we're recommending your consideration of passing a new opt out." (Susan Beeman)
Commissioners debated two separate choices: whether to pass an opt-out resolution to create levy capacity and whether to levy any new opt-out funds for 2026. Chair stated a preference for bringing back a resolution for discussion at the July 15 meeting: "I personally am in favor of a resolution for discussion on July 15 for the 1,500,000.0 just because that's what for the last 2 or 3 years, that's been our strategy," the chair said.
Auditor staff emphasized forecast assumptions, including using reserves to smooth budgets, a historical cash-applied target of about 8%, and a working target of 9% that the office believes is more realistic going forward. Beeman also noted legislative changes that affect growth caps and how those feed into the projection.
The commission did not levy a new opt-out in the meeting. Board members directed staff to return with more detailed scenarios and an org-chart-style visualization of how opt-out layering would affect reserves and levy messaging ahead of the July 15 decision.
What's next: commissioners said they intend to review scenario planning and consider whether to place a $1.5 million opt-out resolution on the July 15 agenda; staff will provide detailed forecast variants and historical comparisons.
Sources: Presentation and forecast slides from the Minnehaha County Auditor's Office; comments by Susan Beeman and the chair during the commission budget meeting.
