The Anoka-Hennepin School District is expecting to shift portions of its revenue from state financial aid to local levies in 2021, due to a growing tax base.

The School Board approved a preliminary 5.6% increase on the property tax levy Sept. 28. When the board approves the final levy in December, it can lower that amount but cannot raise it.

Based on the preliminary levy, homeowners can expect anywhere between a slight decrease in their school levy payments to an almost 7% increase.

Homeowners whose property value did not increase can expect to pay a little less in school property taxes next year. The district estimated properties to increase in value by about 8%, which would result in an increase in payment of about 7%.

The district’s preliminary levy is up $6.7 million or 5.6% overall. That includes a general fund levy increase of $6.5 million, or 6.5%, and a community service levy increase of $566,673, or 15%. The regular debt service levy is dropping by $411,727, a 3% decrease.

The preliminary referendum and local option levy increased by about $2.9 million. However, that will net the district only about $1.1 million in new revenue, due to a decrease in state aid, according to board documents.

The district’s tax base is growing, which is reducing how much aid money comes from the state, according to Chief Financial Officer Michelle Vargas. That shifts about $1.7 million of income for the district from aid to the local option levy.

The capital projects levy, used for technology purchases and replacements, is expected to increase by $4.4 million.

Revenue for the preliminary long-term facilities maintenance levy has a net increase $178,615. The levy is actually increasing by $416,991, but much of that increase is offset by the decrease in state aid, Vargas said.

The lease levy is dropping by $758,044, because the district has paid off the STEP building, according to Vargas. Debt service is also decreasing, by $411,727, due in part to a $99,000 decrease in principal and interest payments, according to board documents.

The school district will have its truth in taxation meeting at 6:30 p.m. Dec. 14 during the regular board meeting.

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