Rosemount, MN – The Rosemount City Council unanimously approved its preliminary 2027 budget and property tax levy at its recent meeting, setting a maximum allowable levy amidst record-breaking new construction. The approval established the highest possible property tax levy for the coming year, which city staff can reduce before final adoption in December. Despite a proposed overall levy increase, significant new construction in the city is expected to mitigate the impact on individual homeowners, leading to an average increase of $133 for median-value properties.

The preliminary approval is a procedural step, allowing the city flexibility to adjust financial projections before the final vote later in the year. "What we do here in September is set the ceiling of our levy, the highest that our levy can be," explained Mr. Martin, a city official, "And then between September and December, we're able to move that levy down."

For the current budget cycle, Rosemount saw a record-setting $256 million in new construction. This unprecedented growth significantly influenced the preliminary tax levy. Without this additional taxable value, the increase for a median-value homeowner would have been an estimated $217. However, the new construction helped to offset this, reducing the projected increase to $133 for the average homeowner. Mr. Martin highlighted this impact, stating, "this budget that you're seeing and are considering approving tonight, um, would have increased the median value homeowners tax bill by $217, um, had it not been for that new construction. So instead, the the increase that homeowners are being asked to handle is $133 increase."

A major driver of the proposed budget increase is continued investment in public safety services, a direct response to the city's ongoing growth. The preliminary budget allocates an additional $1.1 million for the police and fire departments alone. This funding aims to ensure the city's emergency services can keep pace with its expanding population and evolving needs.

During deliberations, Council members expressed a desire to maintain Rosemount's position as a fiscally responsible community with a competitive tax rate within Dakota County. Council Member Tammy inquired about the city's standing relative to neighboring communities.

Responding to the council's query regarding Rosemount's comparative tax rate, Mr. Martin affirmed the city's favorable position. "Our tax rate is so low, it's staying so low because of the growth that we have that we can grow 14% have it actually be an impact of about 8.9 like I showed, but we can still be less than the cities around us," he stated, referring to comparisons with communities like Lakeville, Farmington, and Mendota Heights.

With the preliminary 2027 budget and levy unanimously approved, the Rosemount City Council and staff will now engage in further review and potential adjustments before the final adoption vote scheduled for December. This interim period allows for public input and refined financial planning, ensuring the budget aligns with the city's long-term vision and resident needs.