We are positioned to respond to changes in the economy amidst economic uncertainty.”

Cottage Grove Finance Director Brenda Malinowski

The 2026 Cottage Grove City Budget calendar just passed its latest milestone. Meeting Sept. 3 in the St. Croix Room at City Hall, the Cottage Grove Council passed a preliminary 2026 property tax levy for $29.885 million.
Cottage Grove Finance Director Brenda Malinowski presented on the details.
“We are positioned to respond to changes in the economy amidst economic uncertainty,” Malinowski said for upsides on the 2026 preliminary tax levy from the city’s end.
Included in the 2026 preliminary property tax levy is $23,781,200 for general fund levy, $70,000 for EMS, $927,700 for an equipment levy, $450,000 in the municipal building level, $187,500 in the EDA Levy, $190,000 for park capital levy, $4,278,600 in the debt levy, representing a 14.98 percent increase over last year’s levy.
Included as well but outside the property tax levy is a new HRA levy approved last year, this year’s amount rising by $5,000 to $142,500, for a 14.92 percent increase. The property tax levy covers only that operation of taxes for Cottage Grove and not overlapping government districts such as the school.
A Truth In Taxation hearing will be scheduled for Cottage Grove on Dec. 3, 2025 at which public comments will be received on the proposed 2026 tax levy, following the preparation and mailing of individual property tax statements for 2026 to homeowners in November.
The city will then adopt a final property tax levy the same night, certifying the same by Dec. 28, 2025 for the year following. The adoption of a preliminary levy amount of acts as a levy limit, the final levy able to be reduced but not increased from the preliminary levy. The impact of the preliminary tax levy on a home in Cottage Grove (defined as a value of $369,200 for 2026), is expected to increase by $152 or 42 cents per day from 2025, with individual tax bills prepared and sent in November.
Highlighted by Malinowski in budget accomplishments of the prelinminary levy were the following:
• Continues to provide the same exceptional level of city services.
• Demonstrates stewardship’s of capital assets by including the replacement of capital equipment and city infrastructure that have been identified in the Financial Management Plan and Capital Improvement Plan.
• Maintains the distinction to be an employer of choice.
• Provides managed growth in staffing positions needed for a growing community, by including new positions in the 2026 budget.
• Meets the debt service requirements for all existing debt by funding these requirements with the property tax levy, and
• Maintains general fund Balance Target of General Fund.
• Adoption of the proposed property tax levy was approved with a motion by council member Justin Olsen seconded by council member David Clausen, following presentation by Malinowski.
Included in the night’s consent agenda, meanwhile, were a joint powers agreement regarding Grey Cloud Trail, agreement for professional services with regard to fire protection systems plan review and inspections, and a no parking zone on Granada Avenue and 70th Street South. Also included in consent were a final payment on the TH61 River Oaks Restricted Crossing U-Turn, Hearthside Park Sports Lighting System Change Order, and 2025 Fall Boulevard Tree Planting.
Included regular meeting items was a proclamation on Hispanic Heritage Month, public hearing on easement vacations and new easements for Frattalone’s Southpoint Ridge with Roers, and hazardous building demolition of a vacant house at 8274 Hemingway Avenue South, following a process that started six years ago and following inability by city staff to find the owner, despite reposted attempts.
The home registered to Jeffrey Brown at 8274 Hemingway Avenue South is currently vacant, with staff inspecting the property beginning in 2019 and Brown not responsive to correction notices. On April 17, 2024 the city staff inspected the property and a building official posted the property as hazardous. The property has since deteriorated to a point of complete disrepair and has been deemed “not salvageable.”
Covered in workshop open to the public Sept. 3 was a final Environmental Impact Statement (EIS) for the proposed Amrize Nelson Backwater Mine. The Final EIS is expected to be available for public comment from October 14, through Oct. 28, with comments on the proposed backwater mine accepted through both mail and email.
Email comments for the Final Nelson Mine EIS once available may be sent to eis@cottagegrovemn.gov, with mailed comments to be addressed to:
Ms. Emily Schmitz
Community Development Director
12800 Ravine Parkway South, Cottage Grove, MN 55016
The Cottage Grove City Council meets on the first and third Wednesday of the month at 7 p.m. in the St. Croix Room at City Hall. The public is invited.