Eagan City Council Approves the 2026–2027 Budget Focused on Community Investment and Fiscal Stability  

Eagan, MN — At its meeting on Tuesday, Dec. 16, the Eagan City Council approved the City’s 2026–2027 budget, reinforcing Eagan’s commitment to strong financial management while continuing to invest in services and infrastructure needed to support a growing community. 

As Eagan continues to evolve, expectations and service demands from residents and businesses remain high. The approved budget reflects those needs, including maintaining safe streets and parks, supporting public safety, and ensuring reliable City services, while also recognizing the financial pressures facing the community. 

“This budget reflects a very deliberate balancing act,” Eagan Finance Director Josh Feldman said. “We are responding to growth, state mandates, and rising costs while being mindful of the impact on taxpayers and making thoughtful, long-term decisions to keep Eagan financially strong.” 

For 2026, the City’s General Fund totals $60.3 million, a 9.3% increase over 2025. The approved tax levy increases by 8.9% in 2026 and by 6.8% in 2027. 

Several factors contribute to these increases. One is the state of Minnesota’s newly mandated paid family leave program, which all employers must begin paying into in 2026. Another is the planned, multi-year phase-in of public safety aid the City received from the state in 2023. Those one-time funds allowed Eagan to hire 10 new public safety staff, with the understanding that ongoing costs would be gradually incorporated into the tax levy over four years. 

The 2026 budget includes funding for two new staff positions: a mechanic and a Geographic Information System supervisor. It also includes the reduction of a 0.6 full-time equivalent part-time police clerical position. No new staff positions are included in the 2027 budget. 

City leadership emphasized a careful and deliberate approach to staffing. During the budget process, departments identified 15 potential new staffing needs to address growing service demands and maintain high-quality operations. After thorough review, only two positions were approved. This reflects the City’s commitment to balancing service expectations with long-term financial responsibility. 

“This was not an easy budget, and we recognize the financial pressure many residents are facing,” Mayor Mike Maguire said. “Our goal was to be fiscally responsible while remaining committed to our long-term fiscal strategies and protecting core services.  The approved budget and workforce ask our team to operate as efficiently as possible in an admittedly inflationary environment.” 

The 2026 tax levy also includes $992,828 for bond payments related to the Eagan Community Center renovation project. Planned improvements include a new upper-level fitness center, an expanded group fitness studio, a dedicated personal training room, additional bathrooms, new meeting and event spaces, a relocated and upgraded senior room, a new elevator, a renovated indoor playground, and updates to the lobby and staircase. 

For the average Eagan home, valued at $426,000, the City portion of property taxes will increase by approximately $140 per year, or about $12 per month. 

Eagan continues to maintain the highest possible credit rating, AAA, reflecting the City’s strong financial health and responsible budgeting practices. This rating helps minimize long-term borrowing costs while supporting community priorities such as parks, streets, and public safety. 

More information about the City’s budget is available at cityofeagan.com/budget. 

###