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River Heights council adopts tentative budget including proposed $86,250 property tax increase; hearings set
Summary
River Heights City Council adopted a tentative fiscal-year 2026–27 budget that includes a proposed $86,250 increase in ad valorem property tax revenue (about a 75% increase in ad valorem revenue). The council set a tentative-budget public hearing for June 16 and a Truth in Taxation hearing for Aug. 17.
River Heights City Council on May 19 adopted a tentative budget for fiscal year 2026–2027 that includes a proposed increase in ad valorem property tax revenue of $86,250.
Mayor Blake Wright read the Property Tax Impact Schedule on the record, saying the city is “considering levying a tax rate that exceeds River Heights City's certified tax rate” and that the proposal would raise revenue from roughly $115,000 to $201,250 by moving the rate from 0.000476 to 0.0008285. The mayor and Treasurer Michelle Jensen presented a department-by-department breakdown: $40,000 for Parks to maintain current levels of service with added park space and higher wages and benefits; $15,500 for Roads to continue sidewalk repairs; and $30,750 for Administration to address rising wages and benefits.
The tentative budget was approved by the council and the council also adopted three resolutions that together memorialize the proposed property tax change, adopt the tentative budget and property‑tax impact schedule, and set the statutory Truth in Taxation hearing. Council votes on the resolutions were recorded as Evans, Malmstrom, Mathews, Milbank and Pitcher in favor; no one opposed.
Treasurer Jensen told the council she had updated capital projects and salary/benefit numbers since the prior meeting. The budget documents show the city considered two budget scenarios — with and without the proposed tax increase — and the council discussed which recurring costs the increase is intended to cover, emphasizing that one-time costs are not included in the proposed property tax bump. Jensen and the mayor explained that, under state rules, the city cannot spend any approved tax increase until the statutory process is complete and final adoption occurs later in the year.
The council set a tentative‑budget public hearing for Tuesday, June 16 at 7:00 p.m.; the Truth in Taxation public hearing related to a possible tax‑rate increase is scheduled for Monday, Aug. 17 at 6:30 p.m. The council will consider adoption of a final budget following the public hearings and the statutory process.
