Stearns County officials explain how their 5.2% property tax hike will work

Stearns County property taxesStearns County property taxes

Stearns County is home to St. Cloud State University and the Ledge Amphitheater, built on a granite quarry. And now, it’s a jurisdiction with a projected property tax hike of 5.2% — lower than in many similar Minnesota communities.

“With the price of utilities and groceries, any way we can save a little money is definitely appreciated,” says Kaitlyn Anderson, a working mother of two from Sartell. “No one likes to pay more taxes.”

The property tax hike means an increase of about $70 a year for an average household worth about $300,000.

Stearns County Auditor-Treasurer Randy Schreifels says the hope is to keep more money in taxpayers’ pockets.“The concern is always next year, and what’s going to happen,” he explains. “We certainly have that concern, both with the labor contract, personnel costs going up, and also what’s happening with federal and state funding.”   Schreifels says his team is keeping an eagle eye on spending, starting with some departmental belt-tightening.“If need be, we don’t necessarily say, cut a staff job, but say, ‘okay, department, you need to be without that staff for maybe another month,’” he notes.

Budget makers also used $80 million in grants instead of property tax funds.

One big saving was to remove a $1.7 million bond fund from the budget, since bonds for the county are already paid off.

Authorities say there are currently about 160,000 residents in Stearns County.

“Whenever things get more expensive, obviously you have to decide where to spend your money,” says Stearns County Commissioner Steve Notch. “As long as we have growth, the tax capacity is going up, which helps to reduce the tax rate.”

But the biggest savings may be by using a 3/8 cent sales tax, instead of property taxes, to build a new $325 million justice center — a plan approved by voters.

Schreifels says the idea comes from the fact that a little more than half of those being held in the county jail are from outside Stearns County.

“So instead of the [Stearns County] property owners paying 100% for that, now they’re only paying 45%, which is the part that they’re using,” Schreifels explains.   

For $10 worth of groceries, the cost would roughly be about four cents.

“Everybody that spends money here is helping to pay for it,” notes Douglas Reek, of St. Cloud. “Rather than just the homeowners, because it’s not just our people that are in there.”

“I’d say right now, especially with the cost of inflation, our family’s feeling it a little bit more,” Anderson adds.  

She says she sees the pros and cons of a property tax or sales tax switch for funding.

“I guess with sales tax, you have a little bit more control over how much you’re spending,” she explains. “Maybe cut back on some necessary things, where property tax, if you own a home, you don’t necessarily get that option.”The county says adding the cost of the justice center to the property tax levy would have cost taxpayers an additional $185 a year.

The county commission is to make a final vote on the budget in December, with tax bills going out starting in the spring.

Schreifel’s takeaway?

“On the expenditure side, we do try to forecast a budget for our larger expenditures,” he says. “On the revenue side, we’re trying to fully utilize the grants and get that outside funding to help pay for things.”
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