Waseca council examines levy, budget

Finance Director Alicia Fischer provided a breakdown of the 2026 Levy/Budget at the beginning of Tuesday's meeting. 

 

The final 2025 levy came in at $5.8 million with a tax capacity of 74.1%. 

 

This year comes in at $6 million with a 72.8% capacity. 

 

Compared with 10 similarly sized cities, determined by the city's auditors, Waseca’s budget of $6 million comes in about $2 million below the average, or third from the lowest. Some of these cities included New Prague and Fairmont, for reference. The average preliminary levy increase for those 10 cities came in at about 10%. 

 

It was stated that the average assessed property values went up 9.2% in Waseca County for 2026. 

 

On a property valued at $172,000, property owners will see their taxes increase about $8.99 per month or $107 annually from the city’s proposed levy increase. 

 

Where does the city get its funds?

37.8% from the levy

36.8 from the local government aid. 

8.6% - Utility transfers

4.3% Government grants, reimbursements, funding from county and school district, etc. 

4.3 - Charges, fees, fines and misc. 

2.8 - license and permits 

1.9 - Transfers 

1.7 - Franchise fees

1.4 - Water park revenues 

It was noted that the city could charge for more city services to reduce the cost of the budget. 

 

Where taxes dollars go per $100 

General levy - $61.41

Capital levy - $26.41

Debt. services - $6.66

Tax abatement levy - $3.74

Water park debt - $1.79 

General fund taxes - $61.41

Police - $22.56

Administration - $10.88 (includes a lot, law, all admin, etc. )

Rec. and Culture - $8.55

Street and main - $6.90

Eng. - $4.66

Fire - $4.41

Comm. Dev. - $2.31

Other - $1.13 

 

2026 budget increases 

Reasons behind the increased budget include: 3% cost of living increase; 2% market adjustment; health insurance rates/adjustments; MN paid leave (The city’s premium. Waseca is doing a private plan with a lower rate, than the state plan); Capital improvement program funding; Equipment/replacement plan funding; Annexation and growth funding; Funding for aerial fire truck 2026 purchase; Street operator position (vacant since 2020 - now considered necessary/needed); fund balance adjustment (the auditors said the balance has been dropping down and the city needs to maintain a higher balance); Utilization of state aid maintenance of general fund street maintenance costs.