Proposed Rochester 2027 Budget Includes 5.6% Levy Increase

Rochester, MN (KROC-AM News) - The Rochester City Council will be presented with a proposed 2027 budget during a study session on Monday.

Rochester City Administrator proposes nearly $800 million budget

City staff is recommending an overall spending blueprint that totals just under $800 million. That would be an increase of just under $106 million from the overall 2026 budget of $693 million. The overall budget figure includes the operations of Rochester Public Utilities.

Property tax levy would rise 5.6%

The proposed budget includes a nearly $125 million city property tax levy. That represents an increase of about 5.6%, or $6.6 million, compared with the 2026 city property tax levy.

City Council agenda documents indicate the proposed increase in the property tax levy is slightly below the 5.95% increase that was adopted for this year.

City of Rochester

General fund spending reaches $141.6 million

City Administrator Alison Zelms is recommending a $4 million increase in Rochester's general fund spending, which would push the total to just over $141.6  million next year. Nearly half of the increase would be directed to the Rochester Police Department.

Public safety accounts for 56% of general fund

Overall, more than 56% of the city's general fund expenses are tied to public safety through the Rochester Police and Fire departments. General government expenses account for 17% of general fund spending, and 16% is directed to public works.

City of Rochester

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The City Council will spend the next several months going over the budget proposal in detail before adopting the final 2027 budget and city property tax levy in December.