Rochester City Staff Recommend 10.3% Property Tax Increase

Rochester, MN (KROC-AM News) - The Rochester City Council is scheduled to vote Monday to certify the city's 2025 preliminary property tax levy.

City Staff is recommending certifying the amount at just over $112 million to support a proposed operating and capital budget of more than $689.4 million. A public hearing and vote on the final budget and tax levy for next year is expected to take place on December 2.

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According to the City Council agenda for the meeting on Monday, the recommended preliminary property tax levy is up 10.35% when compared to the 2024 city levy. The proposed increase would boost the amount collected by the city by about $10.5 million.

A presentation prepared for the City Council by staff indicates the vast majority of the proposed property tax increase is tied to higher costs associated with pay and benefits for city employees, particularly those involved in emergency services. A small portion is due to the City Council's decision to move forward with constructing a new Silver Lake swimming pool.

The presentation also estimates the proposed increase in the city property tax levy would add just over $57 a year to the annual property tax bill for the owner of a median value home in Rochester that would represent an increase of 4.5% when compared to the 2024 levy. That estimate is based on a residence valued at around $288,000.