City Council Approves 2026 Budgets and Levies for the City and HRA

OWATONNA, Dec. 16, 2025 – At its December 16 meeting, the City Council approved its 2026 budget with a 9.9 percent property tax levy increase to maintain its existing level of City services and amenities. The City Council also approved the 2026 budget and property tax levy for the Housing & Redevelopment Authority (HRA) to help meet the community’s housing needs.

“The City is adjusting its budget due to shifts in inflation and to continue delivering the high level of services our community members expect,” said Council President Kevin Raney. “Throughout the year-long process of developing this budget, fiscal responsibility has been at the forefront of discussions.” The following operating levy increases are included in the 2026 budget:

Increased costs for supplies/materials (bituminous, concrete, road oils, chloride, chemicals, fuel, etc.)
Replace and upgrade portable recording systems for Police Department
Support for information technology transition from a hybrid environment to cloud solutions for increased efficiency and security
Comply with State-mandated Minnesota Paid Leave
Implement City Council-approved 2025-2027 employee compensation

The City’s operating budget provides a range of services for its 27,000-plus residents including:

Maintaining 90-plus buildings, 139-plus miles of streets, 900-plus acres of parkland and 31-plus miles of paved and natural trails
Police officers responded to 43,488 calls and firefighters responded to 600 calls for service in 2024
2,000-plus building permits are expected to be issued in 2025
The library served 97,925 visitors and hosted 12,931 program attendees in 2024
33,345 guests were served in 2025 at River Springs Water Park
23,961 golfing rounds were provided in 2025 at Brooktree Golf Course

Based on feedback received from community members and receiving final projections for expenses and revenues, the 2026 budget was approved with a reduction from the preliminary budget increase of 13 percent approved by City Council on September 16. “It was helpful to hear from so many community members this year as the budget process evolved,” Raney continued. “I hope this level of engagement continues into the new year and when we begin discussing our priorities that will shape the 2027 budget and levy.”

The City’s budget and budget presentations are available at www.owatonna.gov/Finance.

For information regarding property valuations, taxes or property tax relief options, please contact the Steele County Assessor’s Office at 507.444.7435 or visit the League of Minnesota Cities website.

# # #

Share on Facebook

Share on Twitter

Share via Email