By Logan Wells, News Director | Logan@kymnradio.net
Editor’s Note: This story was drafted on Thursday, August 7th. Last Thursday evening, city staff posted an updated budget revision, down from an initial levy proposal of 19% to 15%. This story reflects the budget documents posted on 8/7.
The Dundas City Council heard the first proposal for the 2026 budget and tax levy in July. The initial proposal is a 19.2% increase in the city’s tax levy, which would expand the city’s budget by $344,499. City staff revised the budget down to a 14.96% (which results in $267,488 of additional revenue) this week.
The vast majority of the budget increase is being fueled by Dundas’s contribution to Northfield’s new Ice Arena, which is $204,865 of the levy increase. Previously, on KYMN, City Administrator Jenelle Teppen has shared why Dundas participated in the Ice Arena agreement:
“We have the same goals as Northfield and the school district have in terms of providing activities for school children. We want to keep kids in the district, and there are a number of hockey players and hockey families in Dundas that play for the Northfield Hockey Association…. You know what’s good for Northfield is good for Dundas, what’s good for Dundas is good. For Northfield. We’re inextricably linked together in that respect.” – Jenelle Teppen, Dundas City Administrator
Listen to the News:
Full List of Increases:
- $204,865 annual payment to the City of Northfield for the Ice Arena
- $100,000 is budgeted for the Street Improvement Fund
- $75,000 for Tower Park improvements (playground)
- $65,000 for one-ton truck (to replace 2014 one-ton truck) — This item was initially scheduled for 2026 and is delayed one year. This is the item making up the budget reduction.
- $60,000 estimated for sidewalk crossing upgrades at West Ave Railroad Crossing
- $42,500 to replace the 2020 Tool Kat
- $40,000 for a lease payment for the John Deere Payloader
- $23,000 for the payback for the Interfund Loan (Sewer Fund to PW Capital Fund)
- $11,000 for new/replacement squad PC’s
- $11,000 for a sidewalk repair project in 2026
- A 4% COLA increase. A survey of our comparable group of cities indicates that a 3.5% COLA adjustment was the average in 2025, whereas Dundas provided a 3% COLA increase. The union agreement with LELS (Police Officers) also expires at the end of 2025, so we’ll be heading into negotiations in the next few months
A house valued at $300,000 would see an increase in city property taxes of $173 a year. See the full breakdown below:
Teppen stated that she expected the levy to possibly come down as the budget was refined:
“We set things high and they always come down as our numbers get more refined and more accurate.” – Jenelle Teppen, Dundas City Administrator on KYMN In The Morning
The Dundas City Council will once again review the budget on Monday, August 11th, and adopt the preliminary levy on September 8th. After the preliminary levy is set, the final tax increase can come down but not be further increased. Additional work session meetings to discuss the budget are scheduled for October 27th and November 24th.
Dundas is scheduled to hold its Truth In Taxation meeting and approve the final Tax Levy and Budget on December 8th.
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