Work SessionItem 2.aDiscussed
Preview of Preliminary 2027 Budget, Financial Management Plan, Utility Rates, City Fees, and 2027 CIB/2028-2031 CIP
City staff and consultant Rebecca Kurtz of Ehlers, Inc. previewed a proposed 2027 tax levy of $33,193,791, a 4.54% increase over 2026, along with a $35,837,871 General Fund budget, proposed increases to development, water shut-off, and Recreation Services fees, and a $26.4 million 2027 Capital Improvement Budget covering road, park, and utility projects such as the Nicollet Avenue reconstruction and a new $55 million Community Center. Council gave feedback and expressed support for staff's recommendations, with the preliminary levy to be formally adopted September 22, 2026 and the final budget certified December 8, 2026 following a Truth in Taxation hearing.
informational or procedural item — no vote taken
Part of an ongoing matter · 3 related discussions
Potential benefit
The preview shows exactly how much city property taxes, utility rates, and service fees are likely to rise in 2027, and outlines major infrastructure investments like the Nicollet Avenue reconstruction and a new Community Center that will affect quality of life across the city.
Concern to consider
A 4.54% levy increase and various fee hikes (building inspections, water shut-off fees, park facility rentals) will raise costs for residents and businesses at a time when inflation is already straining household and business budgets.
What happens next: Department-level budget details will be presented at the August 25, 2026 work session, the preliminary tax levy will be adopted September 22, 2026, and the Truth in Taxation hearing and final levy/budget certification will occur December 8, 2026.
Sources: Work Session agenda (city portal) ↗