Rogers approves $15.3M preliminary levy for 2025, up 13%

The Rogers City Council has adopted and certified a $15.335 million proposed levy for 2025, an increase of 13% from 2024.

The final levy adopted by the City Council in December may be lower than the preliminary levy certified in September, but it cannot be higher. The proposed tax levy includes a general levy of $14.707 million and special debt levies of $628.238 million.

The city’s tax levy for 2025 is likely to be even lower prior to final adoption at the truth in taxation public hearing on Dec. 10, according to Rogers Finance Director Bridget Bruska.

“Based on Hennepin County’s anticipated 3.92% tax capacity increase for 2025, the preliminary levy of $15,335,416, representing a 13% increase from 2024, is projected to result in an estimated tax rate of 38.6%, a rise from the 2024 rate of 35.6%,” Bruska said.

The 38.638% estimated tax rate would increase taxes on a median-valued $446,100 residential property (including an average valuation decrease of approximately 1%) by $119, Bruska said.

“The preliminary levy maintains the capital reserve funds for future needs and replacements, the RAC levy, the interfund loan levies, and the abatement and special debt levies, all of which play a critical role in ensuring the overall financial well-being of the city,” Bruska said.

The proposed levy increase is due primarily to a balancing of the following, Bruska said:

• Growth-driven staffing/operational increases, including union contracts and personnel costs programmed across departments; inflationary and rate increases; contracted service agreements; and utility, insurance, and technology increases.

• Updated revenue projections

• Personnel requests for 2025, including an accounting clerk, assistant fire chief, fire inspector/educator, and mental health coordinator.

• Interfund loan issuance for 2024-25 equipment

• Capital reserve savings for IT, equipment, and facilities.

“Budgeting for a growing community like Rogers brings opportunities and presents some challenges,” Bruska said in a memo to the council. “As the population increases, so does the need for more services like roads, parks, and public safety. At the same time, the city must carefully balance these demands with limited resources. Growth often brings higher costs for maintaining infrastructure and providing services, which can put pressure on the budget. Such growth also brings additional tax base across which to spread the levy. City leaders must make tough decisions to ensure that new projects are funded while still maintaining existing services, all while trying to keep taxes manageable for residents.”

“While budgeting for growth presents many challenges, the city has strong finances, as shown by its financial management plan, annual financial report, and AA+ bond rating. This rating is just one step below the highest possible, AAA. Achieving this is a big success for a community of Rogers’ size, especially as it continues to grow and develop.”

The City Council and staff will continue refining the budget to identify additional service delivery efficiencies, cost reductions, or revenue opportunities, Bruska said. “Hennepin County also revises final tax capacity information used for tax rate calculation through year end,” she said, adding that tax rate estimates are subject to “slight variations.”

Mayor Rick Ihli said the proposed budget is “a high-water mark.”

“It’s our job to see how we can bring it down,” Ihli said.

Council Member Mark Eiden agreed that the council has more to do before the final budget is submitted. “We have a lot of growth coming to the city,” Eiden said. “Part of this is planning for that.”