St. Louis Park considers $500,000 cut to HRA levy after residents decry rising property taxes

The St. Louis Park City Council on a November night moved to have staff model a $500,000 reduction to the Housing and Redevelopment Authority (HRA) levy for council consideration at the Dec. 15 final budget adoption, after a public hearing in which multiple residents said repeated property tax increases are unsustainable.

Finance Director Amelia Kruger told the council the city has trimmed the proposed levy from a maximum 8.02% to 7.49% and noted actions the council has already taken — including closing four tax increment financing (TIF) districts that added just over $3 million in taxable market value — which have lowered the earlier estimates for taxpayers. Kruger said the county’s preliminary estimate puts the overall property tax increase (city, county and school district combined) at about 7.2% for the median home; the city’s portion is forecast at about an 8.6% increase for a median home absent further changes.

Kruger also outlined spending priorities in the proposed 2026 budget that the council funded, including full funding for Minnesota’s Paid Family and Medical Leave for city employees, a free brush management site for residents in 2026, a winter concession stand for the recreation center, and a multiyear plan to sustain the Climate Investment Fund using ongoing resources. She said staff identified more than $200,000 in departmental reductions to help cover new priorities.

At the public hearing, 32-year resident Jake Warner said repeated levy increases have outpaced retirement income and made the city less affordable. "These tax levies are actually making my affordability less and less and less," Warner said, adding that long-term development patterns and TIF-funded projects have altered the character of neighborhoods.

Other residents echoed the concern: Kimberly Weck asked the council to pursue operational efficiencies, and Evan Entler said his property-tax burden rose more than 50% in five years. "For the average taxpayer like myself, it's becoming increasingly less affordable," Entler said.

Following public testimony, several council members said they wanted staff to prepare an amendment to reduce the HRA levy by roughly $500,000 (staff said it will model the precise figure and confirm the exact percentage impact) so that the council can weigh trade-offs and vote on the amendment on Dec. 15. Finance Director Kruger said she can incorporate a $500,000 reduction into the revised budget materials but that the final percentage may differ slightly depending on spreadsheet details.

The council was advised that reducing the EDA or HRA levies in the short term would likely draw on fund balance and could require higher levies later to maintain current spending levels. Kruger also reminded the council that one reason for earlier high estimates was shifting commercial property values and that decertifying TIF districts added tax capacity that reduced the levy pressure.

Next steps: staff will prepare the amendment language and revised budget documents for Dec. 15, when the council is scheduled to vote on final adoption of the 2026 levy and budget.