Knowledge Base

Rochester City Council Adopts 2026–2027 Budget

December 1, 2025 – ROCHESTER, MINN. – The Rochester City Council adopted the final 2026–2027 Operating and Capital Budget and property tax levy at its December 1 meeting following the annual public hearing. The approved two-year budget totals $693.4 million across all funds and includes a 5.95% increase in the property tax levy for taxes payable in 2026. The certified levy amount is $118,284,623. 
 

An increase in the amount levied does not mean everyone’s property taxes will rise by 5.95%. For taxes payable in 2026, property values in Rochester rose by 6.58% with new construction accounting for 1.77% of that growth. The projected local tax rate change is 0.16%. The impact on individual property owners will vary based on property value, classification and overall tax base growth. A short video explaining how property taxes are calculated is available on the City’s website: How your Property Taxes are Calculated 

Statewide, preliminary levies for all cities increased by an average of 8.6% for taxes payable in 2026. Rochester’s approved levy increase remains below that average. 

 
“The adopted budget supports the core services residents expect and depend on including police, fire and the maintenance of our roads, parks and winter snow removal operations,” said City Administrator Alison Zelms. “It also strengthens our ability to plan for the future, manage costs responsibly and maintain a strong foundation for a growing community. The City team remains committed to delivering high quality services while being good stewards of public resources.” 

Key Factors Shaping the 2026 Levy

• Investing in a strong workforce to maintain reliable services for residents 

• Upgrading technology and utility systems to support efficient, dependable operations 

• Meeting service needs driven by community growth and rising costs 

• Enhancing public safety through staffing and equipment that improve response and wellbeing 

• Advancing priority capital projects that support Rochester’s long-term vitality 

The City’s two-year budget cycle promotes long-term planning and financial stability. The 2026–2031 Capital Improvement Plan includes more than $1.2 billion in investments across 378 planned projects. In 2026, 224 projects totaling $251.6 million are scheduled. 

More Information

Meeting packets, presentations and past budget documents are available on the City of Rochester website.