Anoka-Hennepin board certifies maximum preliminary tax levy of $135.5 million

The Anoka-Hennepin School Board voted unanimously on Sept. 22 to certify a preliminary tax levy of $135,500,000 for taxes payable 2026, a $2.7 million, or 1.97%, reduction from the previous year.

Chief Financial Officer Michelle Vargas presented the levy recommendation and explained the major drivers of the decline: a reduction in adjusted pupil units (an estimated decline of roughly 893 pupil units between the two fiscal years), prior-year adjustments to UFARS-reporting and levies, and changes in referendum market value. Vargas said the district's proposed levy is typically set at the maximum to allow for minor accounting corrections before final certification.

Vargas told the board the district's referendum market value per adjusted pupil unit rose from $763,000 to $781,000, that the district remains below the referendum cap per pupil unit, and that the CPI-based inflation factor used in levy calculations was about 2.37% for the year. She also said the district expects to return to the board on Dec. 8 for the statutorily required truth-in-taxation public hearing and final certification once county tax rates are available.

During board Q&A, directors asked about the indexing formula, the effect of pupil-unit declines on revenue, and how the levy interacts with the district's budget process; Vargas said the levy certification is an input to FY27 budget projections and that, with the adopted target for Phase 3 reductions, projected unassigned fund balance would fall to just under 10% if cuts are made as proposed.

The board approved the preliminary tax certification on a motion by Director Simon with a second from Director Langenfeld and a 6-0 voice vote.