Erie Property Tax Increase: Erie Mayor Daria Devlin has proposed a 1-mill property tax increase as part of her 2027 city budget. The increase would raise about $2.8 million and help close a budget gap of nearly $15 million.
For a property assessed at $100,000, the increase would add about $100 to the annual city property tax bill. The proposal does not include higher garbage or stormwater fees. City leaders say they are trying to protect essential services while dealing with rising costs.
The budget plan now goes to Erie City Council. Council members and the mayor will negotiate before a final budget is approved.
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Erie Property Tax Increase – Why Erie Needs More Money
Erie faces a difficult financial picture. City officials project a deficit of more than $13 million before added costs. They also expect about $1 million in contractual salary increases and about $600,000 in added debt service.
The mayor’s administration says it tried to limit spending growth. Even so, the city cannot cover the full gap without new revenue and other budget moves.
- A 1-mill property tax increase would raise about $2.8 million.
- Spending cuts in professional services and operations would save about $3 million.
- Positions eliminated in 2026 would save about $2 million.
- The city would use $6.5 million from its fund balance.
- The city expects about $2 million in added revenue from parking, amusement taxes, and contributions.
A mill is a common way to measure property tax. One mill equals $1 of tax for every $1,000 of assessed property value. So, a 1-mill increase means an extra $100 per year for a home assessed at $100,000.
Also read: North Dakota Voters Reject Property Tax Increases in Two Counties
What the Budget Includes
The proposed 2027 budget is close to $88 million. That is less than a 1% increase from the prior year. The city is trying to control spending while still paying for police, public works, debt, and other services.
| Budget item | Estimated amount or effect |
| Proposed 2027 city budget | Nearly $88 million |
| Budget gap | Nearly $15 million |
| 1-mill property tax increase | About $2.8 million |
| Cost to a $100,000 assessed property | About $100 per year |
| Spending cuts and savings | About $5 million |
| Fund balance transfer | $6.5 million |
| Garbage and stormwater fees | No increase proposed |
The plan relies on several sources rather than one tax increase. That approach may reduce the burden on homeowners. But it also means the city is using reserves, which are not a permanent source of money.
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A Second Tax Increase in Two Years
This would be the second straight year Erie raises property taxes. The city approved a 1-mill increase in the 2026 budget. That increase generated about $2.9 million.
Before 2026, Erie had not raised property taxes since 2020. City leaders had kept the rate at 13.12 mills from 2020 through 2025. The 2026 increase pushed the rate to 14.12 mills.
The new proposal would raise the city’s rate again. A 1-mill increase would be about a 7.4% rise in the city’s general fund tax rate. Financial advisers had told the city that it might need between 1 and 2 mills to address the deficit.
A 2-mill increase would have raised about $5.8 million. But it would have added about $200 per year to the tax bill for a $100,000 assessed property. The mayor chose the smaller increase.
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What Happens Next
Erie City Council will review the proposal of Erie Property Tax Increase in the coming weeks. The mayor and council must agree on a final budget before the new year begins.
Residents may have questions about how the money will be used. They may also ask whether the city can find more savings instead of raising taxes. City leaders say they have already cut costs, but inflation, wages, and debt payments continue to rise.
The decision will affect homeowners, renters, businesses, and city workers. Higher property taxes can be hard for homeowners on fixed incomes. But cuts to city services can also affect neighborhoods, roads, safety, and daily life.
For now, the mayor’s plan offers a middle path. It raises taxes modestly, uses reserves, and avoids new garbage or stormwater fees. Whether City Council accepts that plan will shape Erie’s finances in 2027.
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