St. Cloud Mayor Outlines 2026 Budget with Water Rate Hike and Free Evening Parking Proposal

(KNSI) – St. Cloud Mayor Jake Anderson presented the city’s $67.5 million enterprise funds budget for 2026, which includes several fee increases while introducing free evening and weekend parking downtown.

The budget covers nine fee-based services not funded by property taxes, which are made up of water, sewer, stormwater runoff, the hydroelectric dam, street lights, parking, garbage/recycling service, the Municipal Athletic Complex and River’s Edge Convention Center.

The most significant changes come to the city’s water utility, driven by upcoming infrastructure projects and declining reserves. St. Cloud Mayor Jake Anderson spoke to KNSI News shortly after briefing the council and stated the increase is being driven by some water maintenance projects on the horizon, and the city’s reserves beginning to decline. But, the increase should close the gap. “Next year, we had about a $2 million shortfall. So, we’re cutting about $675,000 worth of projects, or deferring them, I should say, and then, raising the water utility. The average person will see a $3 a month when we did the math.”

That’s for a home that uses around 6,000 gallons of water. Residents will see their monthly water service charge increase by 50 cents, from $8.50 to $9.00. Usage rates are also climbing, with the first 400 cubic feet costing $1 more, the next 400 cubic feet increasing by $0.25 to $4.25, and usage above that rising 25 cents to $4.75 per 100 cubic feet.

Anderson emphasized the increase is necessary for system operations. “That goes to fund the system and operating the system, so it’s not like there’s this magical pot of money, we’re not doing anything glamorous with it. It was a needed increase.”

In a move designed to make parking easier and encourage downtown visits, the city is proposing to make nearly 3,000 parking spaces free during off-peak hours. “We’re trying to simplify it, giving those free ramps and free lots after 5:00 p.m., and then weekends free. So, right now you have to kind of figure out, besides the ramps, which lot is free. This simplifies it and just says after 5 o’clock, all the city-owned surface lots are free.”

To offset revenue losses, on-street meter parking will increase by 50 cents to $1.50 per hour, and parking permits will rise by 10%.

Anderson noted the revenue structure is designed to be self-sustaining. “Those revenues go into the parking system maintenance, providing parking ramp repairs, other maintenance related to the surface lots, so that it’s designed to fund itself, so that we’re not putting it on the back, so the property taxpayers, who may or may not go downtown, but instead put it on the fees of the folks that are going down there.”

The mayor acknowledged the changes represent a return to some pre-pandemic policies in the ramps and surface lots.

Trash collection will see incremental increases over the next two years. “Refuse for a cart, it’s going to go up a buck a month, it’s $31.50 now, it’s going to go to $32.50, if you have green bags, no change to those,” Anderson said.

Compost permits are seeing more substantial adjustments, particularly for non-residents. “We’re going to increase the compost from $30 to $40, and then shift to a non-resident fee of not $40 anymore, or $30, but $80, which will bring us more in line with neighboring communities of where they set for their non-citizens,” the mayor explained.

Special pickups will cost $5 more per cubic yard, increasing from $20 to $25, and mattress pickup fees will rise $5 per set.

A public hearing is scheduled for December 1st where people can give their two cents on the plan before a final vote. Council members can also propose changes.

The enterprise fund changes are separate from the city’s proposed 4.5% property tax increase, which marks the first property tax rate increase in approximately 20 years. That increase, combined with a voter-approved fire station referendum, has raised tax bills on residents. Anderson said 71% of the city’s increase is due to the voter-approved fire station.

The budget will be finalized in December, with most changes taking effect in January 2026.

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