City of Saint Peter Sets 2026 Preliminary Levy and Budget
The City of Saint Peter has released its proposed 2026 budget and preliminary tax levy, continuing its long-standing practice of building budgets around services and resident priorities—not last-minute cuts or surprises.
Under Minnesota law, the City Council must adopt a preliminary levy before the end of September. The final levy approved in December may be lower, but it cannot exceed the preliminary levy amount.
For 2026, the proposed levy reflects a 6.9% increase, or $297,276 more than 2025. This translates to a projected tax rate increase from 49.95 to 52.79. For a homeowner with a property valued at $250,000, this means an estimated $17.71 annual increase in the City portion of their property taxes.
“Our budget process is intentional and transparent,” said City Administrator Todd Prafke. “We don’t inflate budgets only to cut them later for show. Instead, we carefully evaluate services line by line, consider what residents value most, and plan for both today’s needs and future obligations. Every number reflects a decision about the services residents rely on—parks, public safety, streets, and more.”
Key Budget Highlights for 2026:
- Investments in Public Safety: Addition of one sworn police officer, partially offset by dispatch savings.
- Parks and Recreation: Over $300,000 in capital improvements, including Gault Park parking lot upgrades and new playground enhancements.
- City Hall Transition: Funding the first year of debt service for the new City Hall, with full payments beginning in 2027.
- Library & Community Center: Significant facility improvements, including $150,000 for Library flooring replacement and $125,000 for indoor play equipment at the Community Center.
- Sustainability & Communications: Continued funding for the new staff position supporting sustainability initiatives and community engagement.
The City plans to use General Fund reserves strategically for one-time capital purchases, keeping long-term financial stability in mind. At the end of 2026, reserves are projected to remain at 45% of operating expenditures, well within the City’s policy target range of 35–50%.
Saint Peter’s approach emphasizes clarity for residents. Budget impacts are explained up front, and spending is tied directly to the services and facilities residents use daily. Unlike some municipalities, Saint Peter avoids “year-end spending sprees” or last-minute budget slashing tactics.
“Budgets are about people, not just numbers,” said City Administrator Todd Prafke. “This plan reflects our community’s values and ensures the services that make Saint Peter a great place to live remain strong and reliable.”
The City Council approved the preliminary levy and budget on September 22, 2025, with the final adoption scheduled for December after additional resident input and discussion.
For more information, view the September 22, 2025, City Council meeting packet and video recording at https://www.saintpetermn.gov/AgendaCenter or contact the City Administrator’s Office at 507-934-0663.
About the City of Saint Peter
Founded in 1853 along the Minnesota River Valley, the City of Saint Peter is a historic and welcoming community committed to treating all people like neighbors. The City supports proactive sustainability and housing solutions, quality healthcare, strong schools, and a thriving business environment while preserving its distinctive character and natural surroundings.
