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Chaska adopts 2026 tax levy, budgets and utility rate increases
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Summary
The Chaska City Council approved the 2026 tax levy and fund budgets and adopted utility rate ordinances Dec. 15; staff said the package will increase the median‑value homeowner's annual bill and raise utility revenues to support capital projects and the building program.
The City of Chaska on Dec. 15 adopted its 2026 tax levy and fund budgets and approved a series of ordinances and resolutions to set utility rates for 2026.
City staff told the council the community saw a 7.51% overall market value increase this year, driven in part by 4.1% reported new growth. Staff described three budget priorities: continuing the operational tax‑levy policy, funding the capital asset maintenance program (the “camp” program) and completing the fourth year of the multi‑year building program. The camp program was described as funded at $1,000,000 annually to maintain assets such as playgrounds, trails and overlays; staff reported one overlay project next year of about $1.4 million and said the schedule was adjusted to complete it in one contract.
Staff presented the combined tax impact to a median‑value home: the median home that paid $1,533 in 2025 would pay roughly $1,705 in 2026 — an increase staff described in presentation materials as about $14.33 per month (about $172 per year). Staff also said the building program portion of the levy will result in approximately $30.50 per month for that median home as the program finishes its fourth year.
On utilities, staff proposed rate adjustments to meet capital and expansion needs across electric, water, sewer and stormwater funds. The presentation reported an average utility increase of about 4.87%, equivalent to about $9.82 per month for a typical customer. Staff said major upcoming utility work includes electric system projects (roughly $4.1 million of work cited), a planned second water treatment facility with associated wells and other stormwater projects.
Council approved motions to: set the general fund tax levy (referenced as resolution 2025‑90 in staff materials), adopt fund budgets (referenced as resolution 25‑91), and adopt multiple ordinances and resolutions establishing the 2026 utility rates and summary publications required by ordinance. Motions were seconded and passed by voice vote. The council then approved a bills payment motion via roll call.
What’s next: staff said the public safety center and municipal service building projects are nearing completion and that future capital planning and financing steps will be brought to the council as projects proceed. Any detailed financing instruments, bonding or incentive packages would be returned to the council for separate votes.
