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ANOKA, Minn. - Entering 2026, the City of Anoka is pointing to 2025 as a consequential year of fiscal correction and long-term repositioning, marked by aggressive land redevelopment, restrained utility rate growth, and new municipally owned revenue streams.
Led by Mayor Erik Skogquist and the Anoka City Council, city officials describe the year as a shift away from chronic structural imbalance toward what they call fiscal right-sizing, aimed at stabilizing taxes while preparing for growth.
Turning Land Into Capital
After years of holding city-owned parcels that generated no property tax revenue, Anoka sold or finalized agreements to sell nearly $3 million in land during 2025. City leaders say the scale of the transactions is unmatched in recent decades.
The proceeds are being directed toward paying down municipal debt, reducing future levy pressure, and returning formerly tax-exempt land to private ownership, where it can generate recurring revenue and expand the city’s tax base.
The centerpiece of the effort is the Highland Park redevelopment, involving the $2.5 million sale of approximately 12 to 15 acres on the west side of Green Haven Golf Course to M/I Homes.
Under the development plan:
- Infrastructure work and site grading are scheduled to begin in early 2026.
- The project will deliver 31 villa-style detached townhomes, maintained through a homeowners association.
- The housing is targeted to empty nesters and professionals seeking lower-maintenance options.
- Model homes are expected to open by mid-2026.
In addition, the city finalized redevelopment deals for the former tower site at Eastview Meadows, closing out years of incremental infill work in that area and adding new housing stock.
Utility Rates and Local Control
City officials also highlighted the performance of Anoka Municipal Utility, which provides electric service to residents and businesses.
For 2026, the City Council approved a 1 percent electric rate increase, following a 2 percent increase in 2025. Those adjustments contrast sharply with regional trends.
By comparison, Xcel Energy has requested a cumulative 13.2 percent increase for Minnesota customers over the same two-year period, including 9.6 percent in 2025 and 3.6 percent in 2026.
Because AMU is publicly owned, it operates without shareholder obligations. City leaders say that structure allows rates to remain lower while keeping revenue local.
Internal Finance Reforms
In 2025, Anoka also made a significant internal policy change by ending the long-standing practice of using the electric fund as an internal bank for other departments.
Instead, AMU profits, estimated at roughly $2.5 million annually, are now being directed more transparently toward parks and capital improvements. Officials say the change reduces reliance on outside borrowing and avoids interest costs associated with commercial loans.
Those savings, combined with land sale proceeds, are being used to retire debt on several older municipal projects, strengthening the city’s overall financial position ahead of the next budget cycle.
A City-Owned Cannabis Venture
Anoka is also preparing to enter new territory in early 2026 with the launch of the Anoka Cannabis Company, a city-owned retail dispensary expected to be among the first municipally operated cannabis businesses in the nation.
Construction at 839 East River Road, adjacent to the city’s Better Values liquor store, reached substantial completion in late December 2025. Final opening is contingent on licensing approval from the Minnesota Office of Cannabis Management.
Following the municipal liquor store model, all profits from the dispensary will remain in Anoka. City officials have discussed using the revenue to support improvements at Green Haven Golf Course and to further ease property tax pressures.
Infrastructure and Quality of Life
Several infrastructure-related actions tied to 2025 decisions are moving forward in the new year.
Following the Highland Park land sale, a portion of Garfield Street West has been permanently closed. The closure improves safety for golfers at Green Haven and clears the way for a new permanent trail loop planned for construction in 2026.
City leaders say these steps reflect a broader effort to align fiscal discipline with quality-of-life investments.
“By focusing on growing our tax base and managing our own utilities, we are ensuring Anoka remains affordable for existing residents while building the housing and services of the future,” Mayor Skogquist said.
As Anoka enters 2026, officials say the challenge ahead will be sustaining this balance, converting one-time land sale gains into long-term financial stability while delivering visible benefits to residents.
