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Eagan staff preview 2026–27 budget pressures; 2026 levy projected to rise near 9%
Summary
City finance staff told the council the 2026 tax levy is preliminarily projected to increase about 9% from the prior year, driven by debt for recreational facility bonds, personnel cost increases and a new employer premium for Minnesota Paid Family Leave; staff will return with a full proposed budget in August.
City finance staff delivered an early preview of the 2026–27 operating budget at the June 10 workshop, telling the council the city is facing multiple upward pressures and that the 2026 tax levy is tentatively estimated to rise about 9% for baseline services.
Why it matters: the levy estimate shapes property tax planning and the fall budget process; council priorities (staffing additions, service levels, new programs) will determine whether the levy is revised higher or mitigated by other revenue choices.
Drivers of the projection Assistant Finance Director Brent Boyse and City Administrator Diane Miller outlined fiscal factors building into the 2026 baseline:
- Debt service…
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