City of Eagan reduces projected 2027 levy increase    

Eagan, MN — On Tuesday, Sept. 1 the Eagan City Council approved the City’s preliminary 2027 general fund budget. As the City of Eagan plans for 2027, City Council and staff are working to balance two important priorities: maintaining the services residents rely on and being mindful of the impact property taxes have on households and businesses.

Earlier plans showed a 6.8% property tax levy increase. During this spring and summer, staff took a closer look at revenues and expenses across the organization, following direction from City Council to bring the increase below 5% without compromising core City services.

That work resulted in a proposed 4.7% increase in general fund spending and a 4.9% property tax levy increase. The reduction from the earlier projection comes from a combination of additional funding, lower-than-anticipated costs, and targeted adjustments to programs and expenses.

Maintaining service while managing rising costs

While the City was able to reduce the original planned levy increase, the cost of providing services continues to rise. Personnel costs — including wages and continued increases in health insurance — are a significant part of the City’s budget.

Inflation and higher costs for the goods, services, and materials the City uses every day are also putting pressure on expenses. 
The proposed 4.9% levy increase reflects an effort to manage those increasing costs, while continuing to fund services such as public safety, streets and infrastructure, parks and recreation, and community development.

City Council and staff recognize that any tax increase affects residents and businesses. As with every budget, the City carefully considers spending, available revenues, and the impact on taxpayers while working to maintain the services the community relies on. This year’s budget reflects that continued effort to balance affordability with the resources needed to provide those services.

What happens next?

City Council reviewed the proposed budget and levy at its August workshop and adopted the preliminary 2027 budget and property tax levy in September.

The budget is not yet final. The public hearing and adoption are scheduled for Tuesday, Dec. 15.

Learn more at cityofeagan.com/budget.

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