City council passes 2026 city budget and tax levy

The Roseville city council approved the 2026 city budget and property tax levy at the Dec. 8 meeting. The council also instituted electric and gas utility franchise fees for all properties in the city.

This fall the city council has been considering three different budget scenarios which consider various impacts of including or excluding additional public safety personnel and franchise fees.

Here's what was approved on Dec. 8:

• All budget resolutions were passed unanimously with 4-0 votes, by Councilmembers Groff, Schroeder, Strahan, and Mayor Roe. Councilmember Bauer was absent.
• The city council approved "budget scenario 2" for a total of $82.82 million supported by a tax levy of $32.8 million.* This results in a city tax levy increase of 7.59%.
• This budget includes the hiring of 7 new police officers and 15 new firefighters/EMTs
• The city council approved instituting gas and electric franchise fees, effective March 1, 2026.
• The city council approved the Economic Development Authority levy at $264,826.

For more details, read on:

Budget Breakdown

The approved Budget adds the 22 public safety personnel for police and fire departments, with federal grants partially assisting in covering the costs in 2026. New firefighters will start on April 15, 2026.

Police and fire department expenses take up over half of the property tax levy with the rest nearly equally split between Parks & Recreation (18%), Public Works & Facilities (15%) and General Government (11%). Debt and Capital spending are allocated to the functional areas represented in this chart, according to the presentation.

Personnel costs account for 42% of the 2026 city budget or $35.32 million. This is up from $31.2 million for personnel in 2025—a 13.2% increase. Much of this increase is due to the new personnel for the police and fire departments. But even without that, the city budget for existing personnel was going to increase by $1.56 million due to rising costs.

Expenditures for 2026**:

Personnel Services = $35.23 million
Supplies & Materials = $2.05 million
Utilities = $12.17 million
Contractual Services = $9.38 million
Other Charges = $2.53 million
Capital Outlay = $18.54 million
Deb Service = $2.82 million

Utility Franchise Fees

With the addition of utility franchise fees, residential customers will pay $3.00 per month for electric and $3.00 per month for gas to the utility companies. Non-residential customers will pay more. These fees apply to all properties within Roseville, even those that are tax-exempt. These fees will be paid to the city from the utility companies and will be used to fund capital projects. This will free up budget that would have been funded by property taxes.

Utility franchise fees will raise $2.42 million for capital funds that will be allocated as follows:

• $2.1 million will go toward the Street Fund, Street Light Fund, Pathway and Parking Lot Fund, and Public Works Equipment Fund.
• $264,000 will be used for the Police Department Vehicle and Equipment Fund
• $50,000 will be allocated to the Engineering Services Fund to replace the Xcel permit revenue

These fees will replace $1.631 million of existing levy dollars.

$420,000 will be repurposed to four capital funds on an ongoing basis:

• Public Works Department Vehicle and Equipment Fund
• Fire Department Vehicle and Equipment Fund
• Parks and Recreation Department Vehicle and Equipment Fund
• Park Improvement Fund

The remaining $1.21 million of the levy currently going to capital funds will now be allocated to support the operational part of the budget on an ongoing basis.

Bottom Line

This results in a city tax levy increase of 7.59% and an increase of $10.61 more per month for the owner of the median-valued home in Roseville ($378,600). With the addition of franchise fees, that goes up to $16.61 more per month than last year.

Learn More

For more details, view the Dec. 8 city council meeting materials or watch the recording of the meeting:

• Request for Council Action: A detailed report about the 2026 budget scenarios and decision-making process prepared by city staff
• Presentation slides
• The public hearing on the budget starts at 11:06 of the meeting recording:

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Need Help with Property Taxes?

The Minnesota Department of Revenue and Ramsey County offer special tax programs for eligible homeowners and renters. Learn more at the below links:

Property Tax Relief | Minnesota Department of Revenue

Minnesota offers property tax relief for qualifying property owners and renters in the state. Property Tax Refund Homeowners or renters may qualify for a Property Tax Refund, depending on income and property taxes.

Minnesota Department of Revenue

Property Tax Refunds | Ramsey County, Minnesota

Explore property tax refund options in Ramsey County, Minnesota, for homeowners and renters. Learn about the homeowner’s homestead credit, senior tax deferral, and renter’s refund eligibility. Links to detailed program information are included.

Ramsey County, Minnesota

Article updates:

*A previous version of this article left out the total budget number of $82,818,474. The budget is supported by a tax levy of $32.8 million, plus other revenues (primarily sewer and water utility fees).

**The list of expenditures in the 2026 budget was added to the article after publication