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River Heights council adopts tentative budget, flags proposed property-tax increase of $86,250
Summary
River Heights adopted a tentative FY2026–27 budget and three related resolutions that acknowledge and set process steps for a proposed property-tax rate increase estimated to raise $86,250 annually to cover parks, sidewalks and administrative costs; a Truth-in-Taxation hearing is set for Aug. 17.
River Heights City Council on May 19 tentatively adopted the city’s FY2026–27 budget and formally acknowledged a proposed property-tax-rate increase that would yield about $86,250 in additional annual revenue.
Mayor Blake Wright read the required statement on the record that the tentative budget includes a proposed tax-rate increase and presented the city’s property-tax impact schedule, which estimates the city’s rate would change from roughly 0.476 mils to about 0.8285 mils. Wright said the extra revenue would be used for recurring costs: about $40,000 for parks to maintain existing service levels with added park space, $15,500 for sidewalk repairs in the roads department, and $30,750 for administration to cover rising wages and benefits.
The action included three related votes. Council adopted Resolution 2-2026, acknowledging the budget officer’s statement and directing preparation and presentation of a property-tax impact schedule; Resolution 3-2026, tentatively adopting the FY2026–27 budget and the separate impact schedule and setting a public hearing; and Resolution 4-2026, stating the council’s intent to increase property-tax revenue and scheduling a Truth-in-Taxation hearing for 6:30 p.m. on Aug. 17, 2026. The council set a separate tentative-budget public hearing for June 16 at 7 p.m.
Councilors and staff emphasized that the proposed increase is intended to sustain ongoing services rather than fund a one-time project. Wright said the city has endeavored to keep taxes low historically but that rising wages, benefits and maintenance costs have created recurring budget pressure. Resident Craig Bailey, speaking during public comment, said he was "shocked at the proposed tax increases" and questioned whether the timing and size of the increase were appropriate. Council members responded by pointing to long-term maintenance needs and noting the Truth-in-Taxation process provides a public hearing and additional transparency.
The tentative budget remains subject to revision before final adoption. Councilors said the June 16 hearing will allow additional public comment and that final approval would follow statutory notice and certification steps.
