Moorhead City Council Approved Preliminary Tax Levy

The council authorized a preliminary 2027 property tax levy of $28.8 million, marking a 4.36% increase.

Updated on Sept. 29, 2026 in City Hall

Isometric editorial illustration of a clean geometric municipal facade, representing the structural framework of city budget planning. — Moorhead City Council members authorized a preliminary 2027 property tax levy of $28.8 million, establishing a maximum tax rate increase of 4.36%. AI Illustration. Upload story photo >

Live Poll

Do you feel that rising local property taxes are becoming difficult for your household to afford?

Moorhead City Council members have approved a preliminary 2027 property tax levy of $28.8 million. This move sets a maximum tax rate increase of 4.36% for the city as officials prepare for final budget deliberations.

Why it matters

The preliminary levy serves as a ceiling that establishes the maximum tax burden on residents. The budget hike is driven primarily by mandatory spending increases for city employee wages and benefits mandated by existing union contracts.

The council established a $28.8 million levy and a $822,286 allotment for the Economic Development Authority. The approved budget includes $34.8 million for city payroll, with the 4.36% rate hike expected to cost the owner of a $254,600 home an extra $59.17 annually.

The players

Moorhead City Council

This is the primary legislative body responsible for governing the city of Moorhead and managing its annual municipal budget.

Economic Development Authority

This local agency focuses on city growth initiatives and received a separate preliminary tax levy of $822,286.

The details

The preliminary budget allocates $17.5 million to the general fund, $4.2 million to the park fund, $1.2 million to the library, and $5.6 million for city debt. Additionally, the city set aside $250,000 for an economic development rebate program while maintaining the ability to reduce, but not increase, these amounts before final adoption.

The City Council approved the preliminary property tax levy on September 28, 2026.
The approved tax levy will apply to the 2027 fiscal year.
The City Council will hold a vote to approve the final tax levy on December 14, 2026.

Political Context

The council's move to set a preliminary ceiling follows standard municipal budget protocols mandated by state-level Truth in Taxation legislation. This process ensures that cities establish a maximum levy that cannot be increased before final budget adoption in December.

The proposed 4.36% rate increase will cost the owner of a median-valued $254,600 home approximately $59.17 in additional annual taxes. Residents should be aware that final tax bills may fluctuate further if home market values in the area rise before the tax year begins.

The takeaway

The preliminary levy functions as a safety ceiling, meaning tax rates cannot legally increase beyond this current 4.36% projection. Homeowners should plan for the estimated $59.17 annual increase while noting that the final tax burden could be lower if the council reduces allocations in December.