Eagan council adopts $60.25M 2026 general fund budget, approves $57.54M levy after Truth in Taxation hearing

The Eagan City Council on Dec. 16 adopted a $60,254,400 general fund budget for 2026 and approved a final levy of $57,540,700 following a continued Truth in Taxation hearing.

Finance Director Josh Feldman told the council the proposed levy increase of 8.9% is driven largely by personnel costs — which make up roughly 80% of the general fund — plus bond debt for recent parks and community center projects, and rising insurance and IT expenses. "Personnel costs are a big driver," Feldman said, noting programmed wage increases, higher health insurance estimates and new contractual software costs for police translation and dictation services.

Feldman showed a chart illustrating that public safety aid the city received in 2023 ($3.2 million) will phase down through 2028; when one-time aid ends, levy revenue must replace portions of those expenditures. He said a hypothetical $2 million cut in the levy would eliminate an estimated 23 positions — including about seven police and nine fire positions — and would likely increase overtime and degrade service efficiency.

Fire leadership, responding to council questions, said the transition from part‑time to full‑time staffing after a Citygate study significantly improved response times. "We have more than halved the time," Fire Chief Searle said, describing a drop from roughly 15 minutes to about 6–7 minutes on typical responses and recounting a recent life‑saving call that illustrated the change.

Police Chief Omari said the department is authorized for 79 officers but is operating with 70, which raises overtime costs and forces larger patrol beats; he noted that as staffing rises the department expects to broaden proactive community policing efforts.

Members of the public raised affordability concerns. Jason Nord, a resident, urged the city to track property taxes as a share of household income and to reset levy expectations to address compounding increases affecting household finances. Feldman said the city projects about $3.5 million in one-time surplus for the current year, largely from building permit revenue; those funds typically flow to reserves or are used for one‑time capital expenses to avoid recurring levy impacts.

On a motion to close the public hearing and adopt the budget, the council approved the 2026 general fund budget and final levy on a voice vote. The motion to close and adopt was made from the floor during the meeting and carried; the council indicated it will revisit use of any year‑end surplus in the early 2026 capital/budget review cycle.

The council’s action preserves current service levels while adding debt service for recent facility projects and funding ongoing personnel costs; councilmembers said they remain sensitive to affordability and plan to continue examining options and scenarios in next year’s budgeting cycle.