Oak Park Heights council adopts 2026 budget and sets 5.93% levy increase

The Oak Park Heights City Council on a unanimous roll call adopted the city's 2026 budget and approved the 2026 tax levy after a public hearing with no members of the public present.

Director Ager, the city's finance director, presented the budget as a condensed review of work that began in June and said the proposed general fund total for fiscal 2026 is $8.2 million. "We are proposing a general fund total of $8.2 million," Ager said. He told the council the city expects revenues to generally match expenditures for the coming year.

Ager attributed upward pressure on the levy to three main drivers: continued emerald ash borer removals, a projected 14% increase in health insurance costs and contractual employee wage increases. "The increase of 5.93%, which is significantly less than you're going to see out there with other agencies," Ager said, describing staff efforts to limit the tax burden.

The council moved and seconded Resolution 2512-42 approving the 2026 budget; roll call votes recorded Council member Johnson, Council member Ljigrin, Council member Swenson and Mayor Dhy as voting \"Yes.\" The subsequent resolution to approve the 2026 tax levies passed on the same roll call.

Council members also approved an annual ordinance amendment to the city's master fee schedule to incorporate this year's changes: area connection charges for water, sewer and storm systems; updated water usage and sewer/storm rates; inclusion of bulk yard waste rates; and a garbage rate increase tied to a previously approved garbage contract extension. Staff noted that the state now handles cannabinoid licensing fees, so that fee was removed from the city schedule.

Other budget items highlighted by staff included ongoing water infrastructure work, design work for Memorial Avenue pending county processes and a planned website update. Ager said the city plans to continue work on tree removals related to emerald ash borer into 2026 and credited city arborist Lee Danielson with securing grant funds that have supplemented the city's efforts.

The council opened the Truth in Taxation public hearing but closed it immediately, saying there were no attendees. The motions to adopt the budget and levy passed by roll call; no detailed amendments or dissenting votes were recorded during those final motions.

The meeting record shows the council approved the consent agenda earlier in the evening, which included bills 72,444 to 72,476, approval of minutes, the 2026'2030 capital improvement plan and several contracts and administrative resolutions.