Downtown Service Charge Set to Rise 4% in 2027

Roughly 150 downtown Rochester property owners would pay more under the proposed increase, which City Council takes up Monday.

Updated on Nov. 1, 2026 in Philanthropy

Downtown Service Charge Set to Rise 4% in 2027

Live Poll

Should Rochester's downtown service charge keep rising by 4% each year?

The Rochester Downtown Alliance has requested a 4% increase to its service charge, a $16,000 increase that would let it collect $426,000 to support its activities in 2027. Rochester City Council will review the request at a public hearing Monday, and approval is required before the increase can take effect for 2027.

Why it matters

The service charge is paid by roughly 150 downtown property owners, with individual annual charges based on property values, so the change directly alters what those owners pay. The revenue covers nearly a third of the alliance's annual spending, which makes the council's decision a meaningful factor in how the district funds its events, operations, marketing and programming.

The proposed 4% increase adds $16,000 to the service charge, bringing the total to $426,000 for 2027 across about 150 downtown property owners. Service charge revenue covers nearly a third of the alliance's $1.3 million in 2025 spending, and the agreement's 4% to 8% annual range has been applied at its 8% ceiling before. The council's decision on Monday has not yet been made.

The players

Rochester Downtown Alliance

A downtown district organization funded by a property-based service charge and supported by Mayo Clinic and the city, responsible for events, marketing and programming.

Rochester City Council

The city's legislative body that must authorize the service charge increase before it can take effect for 2027.

The details

The service charge is assessed on downtown properties within the district, which stretches from Civic Center Drive to Soldiers Field Memorial Park, and each owner's annual amount is based on property value. The charge is adjusted each year under an agreement calling for increases of 4% to 8%, and the alliance has set its request within that range. Because the charge is a fixed share of a multi-million-dollar budget, changes to it shift the funding available for district events and marketing rather than only the individual bills.

2005: Downtown district established
2020: Alliance forgoes a service charge increase amid COVID-19
2021: Maximum 8% service charge increase applied
Monday, November 2, 2026: City Council public hearing at 6 p.m. in the city-county Government Center
2027: Proposed increase would fund alliance activities

Market Landscape

The request follows the annual adjustment structure set under the 2005 district agreement, which permits increases between 4% and 8% each year. The 2020 decision to forgo an increase during COVID-19 and the 2021 move to the 8% maximum show how the range has been used in both directions.

Downtown property owners should factor a possible 4% rise in the service charge into their 2027 budgets, with the exact amount tied to each property's value. Owners and tenants who depend on district events and marketing should watch Monday's council outcome, since it determines the alliance's funding for 2027.

The takeaway

Property owners in the Rochester downtown district should review the council's decision after Monday's hearing and plan for a service charge that may rise 4% in 2027. Operators who rely on district programming should track the council outcome to gauge the alliance's funding going forward.