2025-26 Budget Release

The City of Rochester held a budget release meeting on May 10, 2025, to present the proposed fiscal year 2025-26 budget totaling approximately $680.5 million, which is a 3.8% decrease from the previous year. The budget maintains a flat tax levy for the fourth consecutive year despite rising costs and flat or declining revenues due to inflation. Key procurement-related highlights include continued investments in public safety programs such as a new youth re-entry program, an alternative response team for non-urgent calls, and a fire academy recruit class. The budget also allocates funds for capital improvement projects including water infrastructure upgrades, construction of new kennels and lobby improvements at Rochester Animal Services, and the Maplewood Nature Cross Arena to promote sustainability. Additionally, the budget supports workforce development, affordable housing projects, digital equity initiatives, and expanded lead paint inspections. The city plans to responsibly use remaining American Rescue Plan Act (ARPA) funds for meaningful investments without creating recurring expenses. No fee increases are proposed for refuse or local works, though a slight water service fee increase is included. The budget process involved identifying efficiencies and restructuring to reduce operating costs by $6.3 million. Public hearings on the budget are scheduled for late May 2025.