Local units of government and the Eastern Carver County School District are preparing for the rising cost of providing services to the public.
Counties, cities and school districts across the Minnesota set their preliminary tax levy by the state-imposed Sept. 30 deadline. In the coming weeks, those governmental units will gather feedback from the public at upcoming Truth in Taxation hearings prior to adopting final levy numbers.
Carver County
The Carver County Board of Commissioners approved an 8% preliminary tax levy increase for next year. The hike includes a 6% base levy increase plus a 2% “legislative impacts” surcharge.
According to county officials, the surcharge is the result of federal and state legislative changes that shifted costs to counties and reduced funding. Carver County’s levy pays for public safety, health and human services, mental health services, and public works projects. It also funds services such as the library system, parks, license centers, CarverLink fiber ring and more.
The county estimates that the owner of an average-priced home of $495,000 will see a $6.80 per month (or $81.60 per year) increase in their tax bill.
County officials report that the levy hike was minimized by $1 million in cuts due to restructured operations, department reorganizations, grant funding shifts, and program reductions.
The County Board has scheduled its levy and budget public hearing for 6 p.m. Nov. 25. The public is invited to attend and provide feedback. Commissioners will adopt the final levy and budget at its Dec. 2 meeting.
District 112
At its Sept. 29 meeting, the Eastern Carver County School Board approved a preliminary tax levy increase of 3.61%. The preliminary levy of $65.8 million is about $2.3 million above the 2025 levy. The School Board will certify the final levy at its Dec. 8 meeting, which starts at 6:30 p.m.
In addition to next year’s proposed levy increase, District 112 is asking voters to approve a 10-year operating levy referendum on Nov. 4 that would generate about $7 million in additional revenue. Rising costs and declining state and federal funding have created a financial challenge for the district. According to estimates, the tax increase on a $500,000 house in District 112 would be about $23 a month, if the referendum is approved.
If the voters fail to approve the referendum, district officials say the district will be forced to cut $6.5 million from existing programs and student services. And that would be on top of $5 million in cuts implemented for the current academic year.
Carver City Council
The Carver City Council set its preliminary tax levy during a Sept. 15 meeting. City officials estimate the owners of an average-valued home of $453,100 will see their tax bill rise $11.25 per month (or $135).
Carver residents previously experienced an 11.84% increase for 2025 and a 13.75% increase for 2024.
Property owners should soon receive “Truth in Taxation” notices showing proposed property taxes, based in the preliminary levy adopted by the city and other taxing authorities. Community members can share feedback on the proposed levy increase through the Resident’s Budget Guide or by contacting a member of the City Council. Residents are also invited to attend the city’s Truth in Taxation hearing at 7 p.m. on Dec. 1.
Chanhassen
Chanhassen City Council’s preliminary levy increase was approved at 7.2%, although officials expressed an interest in dropping the hike below 7% before the levy’s final approval in December.
According to the city’s estimate, the owner of a median-valued home of $501,600 would see an annual city tax increase of about $75 if the 7.2% levy is adopted.
Officials report that the increase stems from rising wage and benefit costs, including a projected 3 percent cost-of-living adjustment, step increases for eligible employees, a new state requirement for paid family leave, and a capped 15 percent rise in health insurance premiums.
Chanhassen’s Truth-in-Taxation hearing is scheduled for Dec. 15, when the final levy and budget will be set.
Victoria
The Victoria City Council set a preliminary levy increase of 9.96% for 2026. Included in the proposed budget is a 3% cost-of-living wage increase for city employees and up to 3% in merit pay bumps based on individual performance.
City staff reported they would continue to look for potential cost savings prior to the Council setting the final levy in December.
Chaska
The Chaska City Council approved a preliminary tax levy increase of 14.06%. The impact on a median-priced home valued at $410,400 would be $14.33 per month (or $172 annually).
The increase will allow the city to maintain existing services, with a few additions the Council deems necessary. New budget items include the Fire Department implementing a 24/7 duty crew as the new Public Safety Facility opens, in addition to a new social worker position within the Chaska Police Department.
Chaska’s public hearing to discuss the 2026 budget is planned for 7 p.m. on Dec. 1. If more time is needed for public comments, the hearing will be continued at 7 p.m. on Dec. 15.
