Sherburne County outlines $139.7M budget, warns state and federal cost shifts are driving future tax pressure

Sherburne County officials presented a proposed 2026 budget of $139,667,354 and a recommended levy of $66,842,284 — a 6.49% increase over last year — at a Truth in Taxation public hearing where residents pressed for explanations of steep valuation and tax jumps.

The hearing, opened by the county chair and led by presenter Bruce, aimed to explain how the county budget and the county portion of property tax bills are set. "The purpose of Truth in Taxation is to enhance public information, encourage public participation, and improve government accountability in the property tax system," Bruce said as he introduced the presentation and invited residents to speak and to meet with assessor staff afterward.

County officials said the proposed levy increase reflects several factors, notably state and federal "cost shifts" that transfer program costs to counties. Bruce told attendees the county absorbed roughly $865,000 in state cost shifts this year, the board declined another $1,660,000 in shifts, and warned of about $3.6 million in additional state shifts on the books that could affect 2027. Officials also cited a federal change tied to "HR 1" that the county estimates could raise the levy by about $1.4 million to cover SNAP-related costs, and a $300,000 Medicaid shift expected to hit in 2029. "We're very, very concerned about what's recently happened in Saint Paul and in Washington," Bruce said.

Officials stressed limits on the county's authority: property tax statements are consolidated and include city, township, school and state lines the county cannot change. Bruce urged residents to contact other taxing jurisdictions about those portions and said staff would provide state legislator contact information. He also said that, because the tax base has grown, the county's effective tax rate has been relatively stable when adjusted for inflation.

Using an example, Bruce said the county portion of the tax bill for a $400,000 home would rise by about $5.33 per month under the proposed levy. He also walked through revenue and spending priorities, saying about half of county revenue comes from the levy and that public safety, health and human services, and public works account for most levy-dependent spending. The board is planning no staff increases and intends to cut more than six positions to help contain the levy; Bruce also noted a new Minnesota paid-leave program that will require counties to contribute 0.44% of employee salaries to the state.

Several residents spoke during the public comment period. One homeowner said a 10-acre parcel's county tax jumped about 122% and asked why; staff offered a parcel-by-parcel review after the hearing. Another resident said her assessed home value rose to $442,000 and described paying about $200 per month for a shared septic system; Dan, a former assessor, and other commissioners explained that state statute and comparable sales (with an approximately 18-month lag) drive valuations and urged affected residents to meet with assessor staff. Bruce said the county has proposals before the state legislature to address perceived inequities in the state's homestead and valuation rules.

Commissioners also flagged the loss of Sherco from the tax rolls as a material future risk — Sherco’s decommissioning represents about 9% of Sherburne County’s tax base, they said — and warned that such losses shift tax burden to other taxpayers.

Staff said the full budget and a slide deck would be posted online and that assessors were available to review individual parcels. Bruce and other commissioners urged residents to contact Representative Lawrence and Senator Eric Lucero and to press legislators about cost shifts. The board closed the hearing after commissioner remarks and adjourned.

The county will finalize the budget by the state deadline in December; staff offered to meet with residents who raised parcel-specific concerns and to share contact information for state lawmakers and talking points for advocacy.