Edina council adopts 2026 budget, sets 7.94% property tax levy

The Edina City Council on Tuesday approved a 2026 operating budget and set the city's property tax levy at 7.94%, a package city leaders said balances debt commitments, public safety staffing and infrastructure needs while responding to resident concerns about affordability.

Finance Director Pah Tao presented the final levy recommendation of 7.94% and said it reduces the preliminary 11.03% rate after additional cuts and reprioritization. "With this proposal, we control departmental operating costs by restricting their annual rate of growth by less than 3%," Tao said.

City Manager Scott Veil said much of the levy increase reflects debt service for projects the council has already approved, including Fire Station 2, the aquatic center pump-room work and Highway 100 improvements, and that staff worked to lower the final rate. "We've worked hard to get here," Veil said after the motion to adopt the levy and budget was moved and seconded.

Councilmembers emphasized competing priorities. Member Jackson called the budget "the most serious thing we do all year" and highlighted added public safety spending and deferred maintenance costs. Member Risser pressed for better tracking of program costs and said residents have raised questions about wants versus needs. Member Pierce urged using a resident-focused affordability metric going forward and said nearly one-third of Edina residents are over 65 on fixed incomes.

Budget detail included staffing adjustments and cost controls: the transfer of assessing duties to Hennepin County (reducing redundant staff costs), elimination of several positions in public works and engineering, and an increase in non-property-tax revenue such as utility franchise fees. Tao said roughly 5.91 percentage points of the 7.94% levy increase are related to debt service obligations.

The council approved the levy and operating budget by motion; the mayor and council signaled plans for follow-up work in early 2026 to identify further efficiencies and to monitor implementation.

The council scheduled continuing review of public safety staffing and other major commitments as part of implementation oversight in January.

The levy certification must be filed with Hennepin County by Dec. 29; council adoption makes the levy official for the city's 2026 budget cycle.