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Eagan hearing on proposed 2026 budget and tax levy draws public concern; council continues meeting to Dec. 16
Summary
Finance Director Josh Feldman told the council the proposed 2026 general fund budget would rise 9.3% and the tax levy 8.9%; staff cited personnel costs, new positions and bond/capital levies as key drivers. After public comment, the council voted to continue the public hearing to Dec. 16 to allow county hearing attendance and an absent councilmember to participate.
The City of Eagan held its annual truth‑in‑taxation public hearing on Dec. 2 to review the proposed 2026 budget and a tax levy proposed to increase 8.9 percent.
Finance Director Josh Feldman summarized the budget and levy during the presentation, saying the proposed general fund budget is “proposed to increase 9.3%,” and that “the tax levy is proposed to increase at 8.9%.” He told the council the general fund represents a large portion of the levy and cited personnel costs, increased health insurance and pension costs, and capital levies—especially community center bonds—as principal drivers.
Feldman detailed the makeup of the increase: the general fund requires roughly $46,000,000 to support operations including police, fire, parks and administration; the budget process identified a $5.1 million increase in general fund spending from 2025 to 2026, of which roughly $3.6 million relates to personnel costs (wages, health insurance increases and pension costs). Feldman also said the city added two new staff positions in 2026 (one midyear start), a mechanic and a GIS supervisor, and noted a 0.6 FTE reduction in police clerical staff tied to use of automated report-writing software.
During public comment, resident Jason Nord thanked the council but said, “this is not an increase that your citizens can afford,” urged staff to cut roughly $2,000,000 from the budget and recommended continuing the hearing. Several other residents asked for more detailed dollar‑amount breakdowns and information on how new commercial valuations (for example the former Thomson Reuters site) will be reflected in future tax bases.
Councilmembers discussed whether to act that evening or continue the hearing; Councilmember Espinat moved to continue the truth‑in‑taxation hearing to Dec. 16 so residents could attend both the county and city hearings and so absent Councilmember Hanson could participate. The motion passed and the council did not adopt the levy on Dec. 2; action is scheduled for Dec. 16.
Feldman and staff offered to provide more detailed dollar breakdowns at the continuation; they noted the process for translating new commercial valuations into property tax base figures can take a year or more because county assessment cycles determine assessed values.
Next steps: the council will reconvene the truth‑in‑taxation hearing and may take formal action on the 2026 budget and levy at the Dec. 16 council meeting.
