ROCHESTER — Funds reserved from a $1.5 million Olmsted County property tax error are reflected in the reduction of a potential tax levy increase for 2027.
A proposed resolution sent to Olmsted County commissioners ahead of budget discussions planned for Monday and Tuesday outlines how this year’s extra tax collection, along with related interest, is expected to affect next year’s taxes.
County Administrator Travis Gransee said commissioners initially expressed a desire to set a levy cap at a 6.8% increase or less, but applying this year’s $1.5 million error drops the anticipated maximum tax levy increase to 4.56%.
Budget discussions could increase or reduce the proposed tax levy before commissioners set the cap Tuesday, but once it’s set, the property taxes collected cannot increase for the 2027 budget.
The proposed starting point for budget discussions would collect nearly $151.4 million property taxes countywide, a roughly $10 million increase compared to the tax set for this year.
Applying the $1.5 million and roughly $57,000 in estimated interest, the anticipated levy needed for 2027 drops to nearly $149.8 million, which would be a $8 million, or 5.68%, increase compared to the adopted 2026 tax levy.
When compared to the actual $143.2 million in taxes collected this year, the proposed rate increase drops to 4.56%, which has become the proposed tax increase going into budget discussions, Gransee said.
County commissioners voted 4-3 on April 21 to reserve the funds collected in error to offset anticipated 2027 tax increases. Supporters noted the cost of the extra collection to individual property owners would likely result in an added county expense, potentially increasing 2027 tax bills.
Upcoming meetings
Meetings scheduled to be held during the week of Sept. 14 include:
Rochester
• City Council study session, 3:30 p.m. Monday in council chambers of the city-county Government Center, 151 Fourth St. SE. The meeting will livestream on the city’s YouTube channel, and be available on Spectrum cable channel 180 or 188.
• Pedestrian and Bicycle Advisory Commission, 6:30 p.m. Monday in room 104 of City Hall, 201 Fourth St. SE.
• Fire Civil Service Commission, 3:15 p.m. Tuesday in room 104 of City Hall.
• Library Board, 4:30 p.m. Wednesday in the second-floor meeting room of the Rochester Public Library, 101 Second St. SE.
• Planning and Zoning Commission, 5 p.m. Wednesday in council chambers of the Government Center.
• Police Civil Service Commission, 3 p.m. Thursday in room 164 of the Development Services and Infrastructure Center, 4001 West River Parkway NW.
Olmsted County
• Commissioners’ annual budget workshop, 9 a.m. Monday in Riverview Conference Room of the Government Center.
• Commissioners’ annual budget workshop, 12:30 p.m. Monday in Riverview Conference Room of the Government Center.
• Board of County Commissioners, 6 p.m. Tuesday in the board chambers of the Government Center.
Rochester Public Schools
• School Board, 5:30 p.m. Tuesday in the boardroom of the Edison Building, 615 Seventh St. SW
