City staff presented the proposed 2026 budget and Truth‑in‑Taxation levy to the Chaska City Council on Monday, laying out projected revenue, planned capital work and the next steps toward final adoption on Dec. 15, 2025.

Staff said the proposed general and EDA levy would be $23,995,562 and that components driving the levy include an expenditure‑inflation factor of 3.44% plus projected new growth of 4.1% (county figures), which together produce a baseline levy change of 7.54%. "We take no action, tonight, on the budget — it's purely to basically sort of lay out what's being proposed, take any comments," the presenter said, noting the council will take final action at the Dec. 15 meeting.

The presentation emphasized that more than half of the community's market‑value growth (7.51% overall in staff materials) derives from new construction, which staff said reduces the share of tax impact falling on existing homeowners. Staff ran the numbers for a median‑value home: city taxes payable would move from $1,533 (2025) to roughly $1,705 in 2026 — an increase of $172 annually, or about 11.2% in city tax for the median property in the materials shown to the council.

Council materials broke the median‑home impact into two pieces: an $85 annual impact attributed to baseline levy changes and roughly $87 attributed to the city's fourth year of a building‑improvement program. Staff described the building program as nearly complete and said it has funded projects including the public safety building, municipal service building work and other facility repairs. The presenter said the city has increased its audited general fund balance (to near $7 million, about 33% of the general fund) and targets a 40% reserve for cash‑flow stability.

Planned 2026 capital work highlighted in staff slides included repaving Bavaria Road, trail resurfacing (about three miles at an in‑house cost estimate of $20,000 per mile), and finishing specifications and bidding for the municipal service building with a target construction start in May 2026. Staff also noted a proposal to add an overnight fire crew for 24/7 coverage tied to the new public safety building, and personnel changes including new officers and a planned social‑worker/correspondent position for police operations.

On revenue, staff reminded the council of the 2023 metro‑wide sales tax (1%) that directs 0.25 percentage points to affordable housing; the city expects approximately $339,000 in the current year and about $345,000 next year to support community land‑trust projects. Staff also described an ongoing franchise/right‑of‑way transfer from the electric fund into the general fund (a 10% total transfer, including a 5% franchise fee) that helps mitigate levy pressure.

No members of the public spoke during the formal Truth‑in‑Taxation hearing. The council voted to close the hearing and formally set Dec. 15, 2025 as the date to consider adoption of the 2026 budget and final tax levy.

The council packet and staff presentation contain more detailed tables on valuation changes, the building‑program plan (multi‑year costs and fund sources), and programmatic additions proposed for 2026.

What happens next: council members and staff said they will continue outreach and return with the final budget and levy for official adoption at the Dec. 15 meeting.