City of Savage flags (copy)

Flags outside of Savage’s city campus.

The City of Savage is eyeing a 6.6% property tax increase that would collect nearly $1 million additional dollars for city services. 

The Savage City Council voted unanimously Sept. 20 to approve the city's proposed maximum property tax levy and proposed general fund budget for 2022. 

The levy amount may be lowered, but not raised, before final adoption by the city council on Monday, Dec. 20.

Public comments will be heard regarding the proposed spending during the regular city council meeting on Monday, Dec. 6 at 7 p.m. 

The general fund expenditures proposed for 2022 represent an approximately $1.02 million, or 5.8%, increase over the 2021 adopted budget. 

The proposal reflects an approximate $997,000, or 6.6%, increase over the prior year's general fund tax levy dollar amount. 

With a 3% wage hike in the police union's contract, spending on the police department is planned to increase by roughly $350,000 to reach a year's budget of $7 million. 

The Savage Fire Department's service model change is reflected in a roughly $195,000 increase to the department's budget. The total fire department budget proposed for the year is roughly $1.8 million. 

The general government budget is proposed to increase by roughly $209,000 for a $3 million annual budget. 

Other proposed increases by department: 

  • Parks and Recreation, approximately $93,000
  • Public Works, approximately $139,000
  • Community Development, approximately $32,000. 

A Savage homeowner with a home valued at $385,000, for example, would see a $51.17 increase this year on the city portion of their property tax bill if their home value increased by 7.5%. 

A $250,000 home, with a 5% increase in market value, would see a $7.34 increase under the city's proposed levy.

A $450,000 home, with a 15% market value increase, would see a $202.60 city property tax hike. 

However, because the city's debt levy is dropping off as bonds are paid, Savage property owners aren't absorbing the full impact of the increased property tax levy, according to Julie Stahl, the city's finance director. 

Combined with the debt levy decrease, the city's net levy increase proposed for 2022 is approximately 2.6%.