Chaska council adopts maximum 2026 property tax levy after extended budget debate

CHASKA, Minn. — The City of Chaska City Council on Monday adopted a maximum property tax levy for payable 2026 after an extended presentation from city staff and a lengthy council discussion about growth, public safety facilities and the city’s long‑range capital plan.

City finance staff presented a recommended maximum levy that follows the city’s longstanding policy of indexing levy growth to inflation plus new growth. “The item in front of you tonight is the first official action that you guys take on the 2026 budget,” the presenter said, summarizing the process that began with work sessions in June and September.

The levy the council adopted is the maximum the city can publish for truth‑in‑taxation notices; council members may lower it but cannot raise it before the final levy and budget adoption in December. Staff said the baseline levy increase based on inflation (about 3.44%) plus projected new growth (about 4.1%) would produce a roughly 7.54% baseline increase; the staff presentation then added the final components tied to the city’s multi‑year building program and capital maintenance commitments.

Why it matters: council members framed the vote as the next formal step in a multi‑year plan to fund four major facilities (public safety campus, a municipal service building, a new library and a later City Hall remodel), maintain road and trail assets through the city’s CAMP (capital asset maintenance program), and hold general fund reserve targets. Staff repeatedly told the council the 2026 levy request was the final scheduled year of the building program and that capturing new growth in the tax base has lowered the per‑home impact of the program.

Key numbers and impacts explained by staff during the presentation were presented to the council as follows: in 2024 the city reported a median home value of about $390,000; the 2025 median was presented as roughly $410,000. Staff showed that the combined operational and building program impact on the median home equated to roughly $14.33 per month ($172 per year), an 11.22% increase from the prior year under the staff proposal. Staff also said the operational baseline portion of that impact was about $85 per year and the building program portion about $87 per year for the median property under the assumptions shown to the council.

Council members asked about reserve targets, timing and who would ultimately pay for the projects. Staff said the general fund reserve was at about 33% (the target is 40%), and that if current permit and market trends continue the city could reach target levels in roughly two years. The presenter noted continued high building permit activity and substantial new industrial development that will expand the tax base.

Council discussion emphasized service needs and tradeoffs. Members highlighted the planned shift to a 24‑hour fire duty crew beginning Jan. 1, the addition of a police social worker position and other staffing and equipment changes. Several council members said the increases reflected necessary investments in core services and public safety and urged residents to review the staff materials and attend the public hearings this fall.

Formal action: Council Member Graff moved to adopt Resolution No. 2025‑68 (adopting the proposed 2026 maximum property tax levy); Council Member Hatfield seconded. The motion passed on a voice vote with no recorded roll‑call dissent.

Next steps: City staff will publish the truth‑in‑taxation notice based on the adopted maximum levy. The council will hold public comment in November and must adopt the final levy and budgets on Dec. 15, 2025. Council members and staff reiterated that they can reduce the levy between now and the final adoption but cannot increase it beyond the published maximum.

Votes and formal actions taken at the meeting are summarized below and included in the city record.