Rochester Council Sets Maximum Property Tax Levy For 2027

Rochester, MN (KROC-AM News)- The Rochester City Council has set a cap for the maximum property tax levy increase for the city’s 2027 budget.

The proposed 2027 budget totals $799,283,832. That would be an increase of just under $106 million from the overall 2026 budget of $693 million.

A $124,901,338 city property tax levy is included in the budget proposal. That represents an increase of about 5.6%, or $6.6 million, compared with the 2026 city property tax levy.

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The recommended spending includes 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.

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

Rochester City Council Adopts 5.6% Maximum Property Tax Increase on 6-1 Vote

The City Council voted 6-1 to adopt the preliminary property tax levy. Councilmember Shaun Palmer, who indicated he's heard from a lot of resident struggling with affordability, was the lone nay vote.

Palmer introduced an amendment prior to the adoption vote that would reduce the tax levy increase by $400,000, which he said would be a 5.2% bump in property tax collections.

Council members Norman Wahl and Andy Friederichs supported it while council members Nick Miller, Dan Doering, Patrick Keane and City Council President Randy Schubring voted against it.

The elected leaders also voted to set a December 7 date for a public hearing on the budget. Councilmembers will then vote on whether or not to adopt the budget following the public hearing.