Anoka County Approves 9.4% Property Tax Levy for 2026 as Officials Confront Structural Budget Pressures and New State Mandates

ANOKA COUNTY, Minn. — The Anoka County Board of Commissioners has approved a 9.4 percent increase in the county’s 2026 property tax levy, finalizing a spending plan county leaders describe as the first step in a long-term effort to stabilize finances after years of relying on reserves.

The final levy, adopted December 2, is slightly lower than the 9.9 percent preliminary levy set in September.

For the owner of a median-valued home, assessed at about $338,000, the increase is expected to add roughly $84 to the county portion of next year’s property tax bill.

A Corrective Course After Years of Reserve Use

County officials say the sizable jump is part of a strategic shift away from tapping reserves to fund operations, wage adjustments, and one-time investments. For years, leaders kept levy increases flat or modest while quietly depending on reserves to fill budget gaps. County Board Chair Mike Gamache said that approach is no longer sustainable.

Past investments and wage adjustments were funded with reserves, which cannot continue without undermining long-term financial stability, Gamache said. The county has committed to a multiyear approach that uses the 2026 level as a reset point. Under the plan, annual levy increases are projected to decline to between 5 and 6 percent by 2029, a level officials consider more predictable for taxpayers.

What the 2026 Budget Prioritizes

The levy supports a budget built around the county’s stated strategic priorities, including public safety, transportation, community services, workforce stability, communication, digital experience, and livability. County leaders say these areas reflect the largest and most essential components of government operations, many of which have seen costs rise faster than revenue under past levy limits.

External Pressures Drive Costs Higher

Beyond local budget constraints, county officials point to significant external pressures affecting the 2026 financial plan.

State and federal governments are expected to implement program changes beginning in late 2026 that may shift responsibilities and costs to counties. The county has also factored in new labor costs associated with Minnesota’s Paid Family and Medical Leave program, which takes effect January 1, 2026.

The statewide program guarantees up to 12 weeks of medical leave and 12 weeks of family leave for eligible workers, with a combined cap of 20 weeks per year. It is funded by a 0.88 percent payroll premium shared by employers and employees. Local governments, including Anoka County, must begin making contributions and administering coverage as employers, which will become a recurring cost in county budgeting.

County officials said the program’s implementation, combined with rising staffing costs and mandated services, contributed to the need for a higher levy this year.

What This Means for Homeowners

The 9.4 percent increase applies only to the county portion of property tax bills. Total tax bills also include levies set independently by cities or townships, school districts, and special taxing districts. Those jurisdictions will determine their own levy changes for 2026, which may raise or reduce the overall impact on residents.

If the county’s long-term plan holds, the levy increase in coming years should become more moderate and more predictable, returning Anoka County to what officials consider a sustainable financial footing without continued reliance on one-time reserves.

Part of a Broader Trend in Local Government

The county’s decision reflects a wider challenge facing local governments across Minnesota. Municipalities and counties are absorbing higher labor costs, expanding service demands, and navigating new state mandates that complicate long-term budgeting. For many, past reliance on reserves or short-term balancing tactics is becoming untenable.

Anoka County’s 2026 levy marks the beginning of a multiyear restructuring. County leaders frame it not as a stop-gap measure, but as a necessary shift to maintain service levels, remain competitive in the labor market, and prepare for external obligations that will shape local budgets for years to come.

MinneapoliMedia