Council certifies preliminary 2026 tax levy of $118.28 million and recommended budget

The Rochester City Council adopted a resolution certifying a preliminary 2026 tax levy of $118,284,623 and a recommended operating and capital budget totaling $663,901,470 (inclusive of Rochester Public Utilities). The council also set a public hearing and final adoption date for Monday, Dec. 1, 2025.

Administrator Zelms said the recommended budget reduces the levy compared with projections and includes $4 million in cuts and $1.9 million in new spending recommended through departmental decision packages. The preliminary levy represents a $6,639,481 year-over-year change in the levy amount, according to staff.

Mayor Norton and several council members noted that the levy figure is the maximum that may be certified and that final levy cannot be increased after certification; the mayor stressed that taxpayers' actual bills also depend on individual property valuation and other taxing authorities (county and school).

Councilmember Palmer opposed the levy and said he intended to vote no; he cited concerns about specific items in the budget (examples he cited included the micro-transit pilot cost per ride and added personnel across departments) and said he would prefer a lower levy. Councilmember Fredericks also voted no. Other council members, including Council President Schubert and Councilmembers Keane and Miller, supported the resolution and commended staff for reducing the previously projected levy.

The resolution passed on a 5-to-2 vote with Fredericks and Palmer voting no. Staff said the certified preliminary levy is the upper limit for 2026 and will appear on property tax notices; the council may reduce the levy before final adoption but may not increase it.