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Council hears 10.17% preliminary levy increase; members ask staff for line-item cuts
Summary
City staff presented a preliminary 2027 budget proposing a 10.17% levy increase driven by personnel, Vista Prairie tax abatement and capital needs; council members asked for more detailed line-item breakdowns and directed staff to search for cuts to get the levy below 10%.
City finance staff presented the proposed preliminary 2027 budget at the July 20 meeting, outlining a 10.17% overall increase over 2026 and a proposed general levy of $6,810,178 — an increase of about $730,178.
Finance staff said the increase reflects personnel cost pressures (salaries, benefits and a 3% cost-of-living adjustment), higher computer-consulting fees, a larger Vista Prairie tax abatement budgeted at $200,000 for 2027 (an increase from 2026), and higher proposed allocations for capital improvements. The presentation listed capital-levy items including roughly $235,000 for capital equipment, $75,000 for building improvements, $300,000 for stormwater and $840,000 for street improvements, a total of about $1,750,000 proposed for capital improvements in the levy.
Councilmembers expressed concern about the double-digit percentage increase in the levy and asked staff for more granular information. "I'd like to see us get it right below 10%," a councilmember said, and several members urged staff to identify modest cuts across funds (parks, capital equipment, street improvements or the fire allocation) rather than a single large cut. Staff noted some numbers remain estimates until Anoka County supplies net tax capacity figures in late August and insurance-cost figures are finalized in September.
Council asked for additional detail on specific items that drive the increase (training and services line items, contractual increases, and the Vista Prairie abatement) and requested that line-item comparisons year-over-year be prepared ahead of the preliminary levy adoption in September. No preliminary levy was adopted at the July 20 meeting; staff will return with refined numbers once county figures and outstanding insurance estimates are available.
