Management and staff have met many times preparing the preliminary estimate of the cost to deliver General Fund programs and services in 2027, and presented to City Council at the August 27, 2026, Regular Session.
Overall, the total 2027 tax levy is proposed to increase $1,813,354 or 16.92% from 2026. A General Fund levy increase of $1,797,973 or 19.95% is proposed to fund services at the level of demand anticipated. A Debt Levy increase of $15,381 or 0.90% is required recognizing scheduled bond payments. There are two changes that have been made since the August 27th meeting with Council:
1. Incorporated Hennepin County's new Net Tax Capacity which resulted in a higher potential budget for paved streets, while maintaining the same tax rate of 44.076%.
2. Increased investment earnings by $25k to align with historical actuals.
The preliminary budget and property tax levy must be adopted, and the levy certified to Hennepin County no later than September 30th, 2026. In addition, the City Council must select a day and time for public input on the 2026 budget. This public input meeting must be held after November 25th, and before December 30th and is currently scheduled for the December 10th City Council meeting. At the meeting, the Council must provide an opportunity to take public comment on the 2027 budget. After, the Council will have an opportunity to adopt the final budget and levy. The final levy must be certified to Hennepin County no later than December 30, 2026.
The budget memo attached to this agenda item summarizes key factors impacting the Preliminary Proposed Tax Levy Collectible in 2027.
Staff recommends that City Council approve Resolution 2026-64 Adopting the Preliminary Proposed Tax Levy Collectible in 2027.
Once it is set the City does not have the ability to increase levy and can only decrease levy with the 2027 final budget which is scheduled to be adopted on December 10th, 2026.
Recommend City Council approve Resolution 2026-64 Adopting Preliminary Proposed Tax Levy Collectible in 2027.
Approve Resolution 2026-64 Adopting Preliminary Proposed Tax Levy Collectible in 2027