St. Peter council adopts 2026 budget, sets final levy that raises city portion about 6.9%

The St. Peter City Council voted Dec. 8 to adopt the 2026 general fund budget and to set the 2025 tax levy collectible in 2026 after a presentation by city staff and public comment.

Perry, presenting the budget, told the council the city’s requested levy reflects a 6.9% increase in the city portion of property taxes and showed example impacts, saying a homeowner with a $250,000 house would see about a $17.71 increase in the city portion of their bill. He said capital needs, a new city hall, equipment replacement and higher personnel costs were the primary drivers of the request, and noted the council’s policy to keep reserves between 35% and 50% of operating revenue. The council agreed to apply roughly $400,000 of reserves and other adjustments to reduce the levy from an earlier proposal of about 10.9%.

Resident Don Cook, who identified himself and gave his address, urged the council not to increase property taxes and asked for an investigation into possible misspending or fraud, saying neighborhood residents — many elderly — felt burdened by rising taxes. City staff offered to follow up with Cook by phone, pointed to the budget packet and the city’s annual audit posted online, and reiterated that the council votes only on the city portion of the tax bill.

Council members discussed the budget over several pages of the packet, including revenue trends that show property taxes and state municipal aid as the largest general‑fund sources and an equipment certificate of about $713,000 for replacing aging vehicles and machinery. Staff said the budget anticipates a modest 3% general pay increase for nonunion employees and targeted market adjustments where needed. Councilors emphasized the iterative process: multiple workshops and staff revisions helped narrow the levy before adoption.

Votes at a glance: - Resolution setting the 2025 levy (collectible 2026): approved by roll call (council recorded in favor). - Resolution adopting the 2026 general fund budget: approved by roll call. - Nonunion wages (2026): approved by roll call (staff estimated cost ~ $380,000). - Other items the council approved during the same meeting are listed in a separate votes summary below.

The council approved the levy and budget in separate roll‑call motions. The adopted budget packet includes line‑by‑line revenue and expenditure schedules and the resolutions the council approved.

The council is scheduled to reconvene for the first 2026 workshop Jan. 5 and the first regular meeting Jan. 12.