The levy
The property tax levy is the sum of separate levies for the general fund, capital, fire, library, the EDA and six bond issues. The general levy is what moves: the August 2026 draft raised it 25.5 percent to cover higher law-enforcement and administration costs and a $57,000 drop in the general-government line, while debt levies fell slightly. The council trimmed the draft from +10.34 to +9.26 percent before setting the preliminary maximum on September 8; the final levy adopted in December can only go down.
Levy by fund, 2026 and 2027
| Fund | 2026 levy | 2027 draft | Change | % |
|---|---|---|---|---|
| General levy (101) | $691,089 | $867,307 | $176,218 | +25.5% |
| Capital levy (202) | $116,500 | $81,300 | ($35,200) | -30.2% |
| Fire levy (203) | $99,962 | $98,613 | ($1,349) | -1.3% |
| Library levy (204) | $154,817 | $162,171 | $7,354 | +4.8% |
| EDA levy (205) | $82,249 | $95,327 | $13,078 | +15.9% |
| Debt: 2016 bond (303) | $29,400 | $26,971 | ($2,429) | -8.3% |
| Debt: 2020A GO bonds (310) | $85,035 | $82,344 | ($2,691) | -3.2% |
| Debt: 2016B GO USDA bond, fire hall (320) | $95,681 | $95,572 | ($109) | -0.1% |
| Debt: 2016B USDA note, fire hall (321) | $20,308 | $20,308 | $0 | +0.0% |
| Debt: 2023A GO bond (323) | $76,000 | $78,273 | $2,273 | +3.0% |
| Debt: 2025A GO bond (325) | $77,500 | $78,363 | $863 | +1.1% |
| Total (Aug. 6 draft) | $1,528,541 | $1,686,549 | $158,008 | +10.34% |
| Preliminary adopted Sept. 8 (Res. 2026-31) | $1,528,541 | $1,670,115 | $141,574 | +9.26% |
Source: 2027 Budget Update memo, Aug. 6, 2026 council packet pp. 116–117 (Abdo Financial Solutions); Resolution 2026-31, Sept. 8, 2026.
Levy history
| Year | Levy | Increase adopted | Basis |
|---|---|---|---|
| 2019 | $948,495 | +6.6% | derived |
| 2020 | $1,011,096 | +6.6% | derived |
| 2021 | $1,040,427 | +2.9% | derived |
| 2022 | $1,107,951 | +6.49% | derived |
| 2023 | $1,183,292 | +6.8% | derived |
| 2024 | $1,277,955 | +8.0% | derived |
| 2025 | $1,400,000 | +9.55% | 8-29-24 work session |
| 2026 | $1,528,541 | +9.18% | DOR certified |
| 2027 | $1,670,115 | +9.26% | preliminary, Res. 2026-31 |
Percentage increases are from the minutes of each December adoption as compiled in the council record; dollar figures before 2025 are back-calculated from those percentages and should be read as approximate.
The reserve, 2015–2025
The audited unassigned general fund balance is the number the rest of the city's finances turn on. It was 79 percent of spending in 2015 and stayed between 61 and 75 percent through 2020. Then the general fund spent more than the council budgeted four years in a row, by $158,545 in 2021, $108,735 in 2022, $468,269 in 2023 and $247,760 in 2024, while levy increases stayed between 3 and 9.6 percent. The reserve paid the difference, falling from $856,818 to $286,012. In 2025 a new finance consultant produced the first budget in five years that spending did not exceed; the price was the first double-digit levy drafts. Rebuilding to the 40 percent policy would take about $413,000, a quarter of one year's levy.
| Year | GF budget | GF actual | Over (under) | Unassigned balance | Share of spending |
|---|---|---|---|---|---|
| 2015 | — | — | — | — | 79% |
| 2016 | — | — | — | $815,793 | 75% |
| 2017 | — | — | — | $756,278 | 66% |
| 2018 | — | — | — | — | 61% |
| 2019 | — | $1,241,875 | — | $764,429 | 62% |
| 2020 | $1,302,060 | $1,261,460 | ($40,600) | $856,818 | 68% |
| 2021 | $1,302,960 | $1,461,505 | $158,545 | $781,106 | 53.4% |
| 2022 | $1,369,075 | $1,477,810 | $108,735 | $735,242 | 49.8% |
| 2023 | $1,377,974 | $1,846,243 | $468,269 | $438,883 | 23.8% |
| 2024 | $1,507,130 | $1,754,890 | $247,760 | $286,012 | 16.3% |
| 2025 | $1,799,147 | $1,777,745 | ($21,402) | $298,165 | 16.8% |
Sources: audited financial statements 2016–2025 (cityofkenyon.gov/finance); 2025 audit MD&A p. 17; unified council-record report.
The general fund, line by line
The general fund pays for the council, administration, police, streets, the pool, parks and the Gunderson House. It is funded almost equally by property tax and state aid, with transfers in from the liquor store and utilities as the third leg. The 2027 proposal is $1,930,103, up $178,882, with $120,000 more for law enforcement (a full-time officer) and $78,854 more for administration (COLA and steps, plus Abdo invoices recoded from general government).
Revenues
| Source | 2024 actual | 2025 actual | 2026 budget | 2027 proposed | Change 27 vs 26 |
|---|---|---|---|---|---|
| Property taxes | $738,415 | $773,308 | $691,089 | $867,307 | $176,218 |
| Licenses and permits | $13,088 | $15,241 | $11,200 | $15,000 | $3,800 |
| Intergovernmental (LGA etc.) | $748,139 | $757,332 | $748,652 | $744,296 | ($4,356) |
| Charges for services | $92,189 | $91,848 | $93,700 | $97,000 | $3,300 |
| Fines and forfeitures | $13,837 | $15,912 | $15,000 | $8,000 | ($7,000) |
| Interest earnings | $13,440 | $26,298 | $15,000 | $25,000 | $10,000 |
| Miscellaneous | $27,443 | $22,642 | $13,580 | $7,500 | ($6,080) |
| Sale of fixed assets | $0 | $455 | $0 | $0 | $0 |
| Other financing sources (transfers in) | $149,793 | $184,862 | $163,000 | $166,000 | $3,000 |
| Prior period adjustment | ($35,648) | $0 | $0 | $0 | $0 |
| Total revenues | $1,760,696 | $1,887,898 | $1,751,221 | $1,930,103 | $178,882 |
Expenditures by department
| Department | 2024 actual | 2025 actual | 2026 budget | 2027 proposed | Change 27 vs 26 |
|---|---|---|---|---|---|
| City Council | $18,197 | $11,321 | $17,930 | $17,650 | ($280) |
| City Administration | $339,206 | $452,559 | $328,010 | $406,864 | $78,854 |
| Elections | $2,780 | $3,665 | $4,000 | $0 | ($4,000) |
| Auditing | $19,558 | $20,284 | $20,000 | $20,000 | $0 |
| City Attorney | $68,327 | $30,951 | $60,000 | $60,000 | $0 |
| City Engineer | $13,230 | $9,540 | $15,000 | $15,000 | $0 |
| General Government | $116,203 | $163,940 | $200,635 | $143,429 | ($57,206) |
| Law Enforcement | $671,397 | $620,535 | $544,946 | $664,946 | $120,000 |
| Streets | $307,245 | $294,687 | $292,880 | $319,100 | $26,220 |
| Recycling | $46,214 | $50,205 | $46,500 | $51,000 | $4,500 |
| Street lighting | $30,049 | $26,921 | $30,500 | $28,500 | ($2,000) |
| Swimming Pool | $146,743 | $121,530 | $116,370 | $118,496 | $2,126 |
| Parks | $76,250 | $63,631 | $67,040 | $77,172 | $10,132 |
| Gunderson House | $17,738 | $15,924 | $7,410 | $7,946 | $536 |
| Community Garden | $41 | $55 | $0 | $0 | $0 |
| Total expenditures | $1,873,178 | $1,885,748 | $1,751,221 | $1,930,103 | $178,882 |
Source: General Fund Budget Summary, 2027 Budget Update, Aug. 6, 2026 packet pp. 117–118. The audit groups the same spending by function (general government, public safety, public works, culture and recreation), so audit and budget totals differ slightly.
2025 budget against actual, audited
Revenues came in $59,703 over budget, almost all of it in miscellaneous revenue ($74,728 over, "due to conservative budgeting"), while property taxes fell $29,458 short. Expenditures were $21,402 under budget in total, with general government $120,400 over and public works $73,295 under because the finance director's salary was recorded in a different department than budgeted. The fund ended the year $2,153 ahead.
Revenues
| Line | Budget | Actual | Variance | % |
|---|---|---|---|---|
| Property taxes | $809,278 | $779,820 | ($29,458) | -3.6% |
| Miscellaneous taxes | $14,000 | $9,246 | ($4,754) | -34.0% |
| Special assessments | $680 | $100 | ($580) | -85.3% |
| Licenses and permits | $8,900 | $15,241 | $6,341 | +71.2% |
| Intergovernmental | $741,370 | $751,974 | $10,604 | +1.4% |
| Charges for services | $87,750 | $86,661 | ($1,089) | -1.2% |
| Fines and forfeitures | $12,000 | $15,911 | $3,911 | +32.6% |
| Investment income | $10,000 | $26,299 | $16,299 | +163.0% |
| Other miscellaneous | $77,400 | $135,829 | $58,429 | +75.5% |
| Total revenues | $1,761,378 | $1,821,081 | $59,703 | +3.4% |
Expenditures
| Function | Budget | Actual | Variance | % |
|---|---|---|---|---|
| General government | $571,860 | $692,260 | $120,400 | +21.1% |
| Public safety | $555,837 | $597,829 | $41,992 | +7.6% |
| Public works | $367,450 | $294,155 | ($73,295) | -19.9% |
| Culture and recreation | $231,000 | $149,889 | ($81,111) | -35.1% |
| Capital outlay: public safety | $9,000 | $7,706 | ($1,294) | -14.4% |
| Capital outlay: public works | $57,000 | $32,656 | ($24,344) | -42.7% |
| Capital outlay: culture and recreation | $7,000 | $3,250 | ($3,750) | -53.6% |
| Total expenditures | $1,799,147 | $1,777,745 | ($21,402) | -1.2% |
Source: 2025 audit, Statement of Revenues, Expenditures and Changes in Fund Balance, Budget and Actual, General Fund, p. 32.
Fund balances at the end of 2025
| Fund | Balance Dec. 31, 2025 | Change in 2025 | Why |
|---|---|---|---|
| General Fund | $383,204 | $2,153 | unassigned $298,165, 16.8% of expenditures |
| Fire Fund | $124,418 | ($218,382) | large capital purchases (SCBA, compressor) |
| Debt Service | $308,308 | $84,761 | special assessment prepayments |
| Capital Projects | $1,146,134 | $1,155,212 | 2025A bond proceeds not yet spent |
| All governmental funds | $2,116,140 | $1,034,764 | unassigned overall: ($182,399); restricted $1,200,737; committed $1,003,444 |
Source: 2025 audit MD&A pp. 7 and 17–18. The capital projects fund holds the unspent 2025A bond proceeds; the fire fund spent down on breathing apparatus.
Government-wide: revenues and expenses, 2025 vs 2024
On the full accrual basis the auditors use, the city's net position grew $513,050 in 2025 to $18,421,221: governmental activities added $438,048 (special assessments certified for the 2025 street project, and a lower pension allocation) and the utilities and liquor store added $75,002, most of it in the storm water fund.
Revenues
| Source | Governmental 2025 | Governmental 2024 | Business-type 2025 | Business-type 2024 |
|---|---|---|---|---|
| Charges for services | $322,527 | $262,134 | $4,188,647 | $3,952,776 |
| Operating grants and contributions | $326,620 | $332,208 | $57,302 | $5,838 |
| Capital grants and contributions | $187,901 | $12,993 | $114,461 | $11,641 |
| Property and other taxes | $1,316,082 | $1,262,484 | $0 | $0 |
| Intergovernmental, unrestricted | $684,944 | $734,101 | $0 | $0 |
| Interest and investment income | $152,566 | $84,454 | $369,444 | $355,875 |
| Gain on sale of capital assets | $0 | $36,594 | $0 | $15,456 |
| Total revenues | $2,990,640 | $2,724,968 | $4,729,854 | $4,341,586 |
Governmental expenses by function
| Function | 2025 | 2024 | Change |
|---|---|---|---|
| General government | $626,222 | $649,246 | ($23,024) |
| Public safety | $992,468 | $927,061 | $65,407 |
| Public works | $507,877 | $792,501 | ($284,624) |
| Culture and recreation | $275,049 | $435,245 | ($160,196) |
| Economic development | $0 | $17,612 | ($17,612) |
| Interest and fiscal charges | $217,338 | $145,394 | $71,944 |
| Total governmental expenses | $2,618,954 | $2,967,059 | ($348,105) |
Public works fell $284,624 and culture and recreation $160,196 on the reallocation of pension expense; interest rose with the 2025A bonds.
Utilities and the liquor store
Kenyon Municipal Utilities (electric, water, sewer, storm water) and the Muni are enterprise funds with their own books and $10.5 million in cash and investments at the end of 2025. Electric is the largest operation in the city: $2.27 million of budgeted 2026 sales, purchased power of $886,000, and a five-year rate plan adopted in 2026 (+7 percent, then +4.5 percent a year). Sewer rates rose 8 percent in 2023 and again in May 2026 to cover the Pearl Creek project's debt; the sewer fund budgets a $248,622 loss for 2026 before depreciation is considered. The liquor store's card fees run about $23,000 a year. KMU has twice offered to lend the city money for land.
2026 budgets and first-half actuals
| Fund | 2026 revenue budget | 2026 expense budget | Budgeted margin | Revenue to June 30 | Expenses to June 30 |
|---|---|---|---|---|---|
| Electric | $2,471,900 | $2,135,262 | $336,638 | $1,117,985 | $1,242,492 |
| Sewer | $581,000 | $829,622 | ($248,622) | $334,401 | $399,395 |
| Water | $435,400 | $697,205 | ($261,805) | $300,430 | $267,388 |
Source: Abdo quarterly report for the six months ended June 30, 2026, Aug. 6 packet pp. 169–174. Electric's first-half expenses include $278,273 of capital.
Expenses by enterprise fund, audited
| Fund | 2025 | 2024 | Change |
|---|---|---|---|
| Water | $502,331 | $466,147 | $36,184 |
| Sewer | $698,215 | $569,007 | $129,208 |
| Electric | $2,363,708 | $2,186,147 | $177,561 |
| Liquor | $925,884 | $872,512 | $53,372 |
| Storm water | $98,352 | $92,187 | $6,165 |
| Total business-type expenses | $4,588,490 | $4,186,000 | $402,490 |
Source: 2025 audit MD&A p. 14. Business-type charges for services were $4,188,647 in 2025.
Debt
Long-term liabilities rose $2,782,721 in 2025 with the 2025A general obligation bonds for the street and utility project, to $13,831,350. All bonds are backed by the city's full faith and credit; most are repaid by special assessments, utility revenues and the debt levies listed above. The 2017B USDA bond and note financed the sewer plant; the 2020A and 2023A bonds financed streets and Pearl Creek.
| Liability | Governmental 2025 | Governmental 2024 | Business-type 2025 | Business-type 2024 | Total 2025 |
|---|---|---|---|---|---|
| General obligation improvement bonds | $6,112,046 | $4,954,398 | $5,987,678 | $4,321,085 | $12,099,724 |
| General obligation revenue bonds | $0 | $0 | $788,000 | $882,000 | $788,000 |
| Notes | $401,118 | $408,708 | $0 | $0 | $401,118 |
| Bond premium | $134,814 | $117,186 | $190,482 | $166,680 | $325,296 |
| Finance purchases | $47,327 | $81,847 | $0 | $0 | $47,327 |
| Compensated absences | $75,455 | $67,673 | $94,430 | $49,052 | $169,885 |
| Total | $6,770,760 | $5,629,812 | $7,060,590 | $5,418,817 | $13,831,350 |
Source: 2025 audit MD&A p. 19 and Note 6. The 2026 debt levies total $383,924, one quarter of the levy.
Capital assets
| Asset class | Governmental | Business-type | Total |
|---|---|---|---|
| Land | $1,317,957 | $57,185 | $1,375,142 |
| Construction in progress | $287,084 | $412,046 | $699,130 |
| Buildings and improvements | $2,642,599 | $1,177,161 | $3,819,760 |
| Furniture and equipment | $1,348,440 | $1,215,120 | $2,563,560 |
| Infrastructure | $4,233,714 | $6,499,348 | $10,733,062 |
| Total, net of depreciation | $9,829,794 | $9,360,860 | $19,190,653 |
Net of depreciation, Dec. 31, 2025. Infrastructure (streets, water, sewer and electric lines) is 56 percent of the total; construction in progress is the 2025 street and utility project. Source: 2025 audit MD&A p. 18.
What it means for a tax bill
The city's own impact table assumes no change in market value and uses the August draft rate of 92.52 percent; the September preliminary levy implies about 89.5 percent, so the increases below are upper bounds. Estimate any value with the tax estimator.
| Property | Taxable market value | 2026 city tax | 2027 city tax (draft) | Change |
|---|---|---|---|---|
| Residential $100,000 | $62,500 | $524 | $578 | $54 |
| Residential $200,000 | $171,500 | $1,438 | $1,587 | $149 |
| Residential $300,000 | $280,500 | $2,352 | $2,595 | $243 |
| Residential $400,000 | $389,500 | $3,266 | $3,604 | $338 |
| Commercial $500,000 | $500,000 | $7,756 | $8,558 | $802 |
Source: Estimate Property Taxes table, Aug. 6, 2026 packet p. 117. Homestead exclusion applied to residential values.
How the budget is made
- Departments submit requests; Abdo drafts the budgetJune–July
- Work session: first draft (19.5% for 2027); council sets a ceilingJuly–August
- Second draft (10.34%); council target 9%August 6
- Preliminary levy adopted, certified to the county as a maximum (Res. 2026-31, +9.26%)September 8
- County mails Truth-in-Taxation noticesNovember
- Truth-in-Taxation hearing, City Hall, 6:30 p.m.December 1
- Final levy and budget adopted; may be lower than preliminary, never higherDecember
- Audit fieldwork; audited statements presented to councilFebruary–April
The 2025 audit (BerganKDV, dated April 6, 2026) reported three material weaknesses in internal control; the council's response is a proposal, on the Sept. 8, 2026 agenda, to replace the outsourced finance function with an in-house finance director over three years.
Sources
- City of Kenyon audited financial statements, 2016–2025 (2025 statements dated April 6, 2026)
- Aug. 6, 2026 council packet: 2027 Budget Update memo, General Fund Budget Summary, quarterly enterprise reports
- Sept. 8, 2026 meeting: Resolution 2026-31, preliminary 2027 levy
- Goodhue County 2026 tax extension rates; Minnesota Department of Revenue certified levies 2026
- Council minutes of each December levy adoption, 2019–2025