EP School Board expects 2025 tax levy increase

The Eden Prairie School Board has approved a maximum preliminary tax levy increase of about 4.5% for taxes payable in 2025.

The levy amount of $63.11 million given preliminary approval Sept. 23 for fiscal year 2026 is an increase of $2.74 million over the 2024 levy, which was $60.38 million.

Andrew Adams, district executive director of business administration, said the estimated annual tax increase would be about 4.3%, or $95, for a home valued at $545,000, about the median value of an Eden Prairie home. He estimated the increase on a home valued at $850,000 would be $156. The increase on a home valued at $350,000 would be about $40 a year, or 2.8%.

The board will finalize its levy after it holds a Truth in Taxation hearing Dec. 9. Adams will go through full details of what goes into the levy calculation at that meeting, and there will be an opportunity for public comment.

Advertisement

Asking the school board to approve a maximum preliminary levy is a customary practice among school districts. The board approving this language allows district management to work with the Minnesota Department of Education to establish levy parameters used in property tax statements, or “truth in taxation” notices, distributed in November.

The board voted to approve the district’s request, with board member Debjyoti “DD” Dwivedy not present for the meeting.

Factors driving the projected levy increase

Adams said that while things were not final, the district knows there would be an overall levy increase due to several factors:

• The real estate market increase experienced over the last couple of years continues to drive increases to the capital project levy (technology levy).
• The operating referendum passed by the community in November 2022 includes an inflationary adjustment, which is 1.02% this year, creating a levy increase of about $983,000.
• The school district purchased property at 11840 Valley View Road and financed the purchase through a Certificate of Participation (COP), which resulted in a $1.1 million increase.
• The district reduced the LTFM levy by $1.9 million in alignment with the purchase of the Valley View Property to meet the board promise related to state-approved projects.
• Principal and interest payments on school district debt will be $726,000 higher than the previous year, as scheduled and planned for in the long-term financing plan for the district.
• Strong enrollment continues to drive many levy increases.

Nevertheless, Josh Swanson, EP Schools’ superintendent, noted the district’s projected 4.5% tax levy increase is the lowest of the three local taxing jurisdictions, with the City of Eden Prairie at 5.8% and Hennepin County at 5.5%. “It’s also key to our long-term financial stability as we think forward,” he said.

More information is available on pages 45 to 62 of the Eden Prairie School Board Agenda and Materials for the Sept. 23 business meeting, and a video of the presentation can be viewed on the school board website.