Bloomington council sets preliminary 2026 tax levy, adopts preliminary general fund budget

The Bloomington City Council adopted a preliminary 2026 tax levy and a preliminary general fund budget during its Sept. 8 meeting, voting unanimously to set maximums the city may later reduce before final approval in December. Mayor Tim Bussey presided over the meeting and Kari Carlson, deputy finance officer, presented the budget materials.

Carlson told the council the preliminary levy proposal reflects a series of adjustments that lowered an original forecasted increase from roughly 18% to a 9.44% preliminary levy increase. The staff presentation attributed the reduction to use of a 2024 surplus transferred to a strategic priorities fund, scaled-back capital projects, lower projected personnel and health-insurance costs, and changes to Normandale Lake District plans that removed a pedestrian bridge.

The nut of the staff presentation: the general fund preliminary levy would rise by $6.7 million while total levy-related increases across funds and debt service produced an $8.3 million increase overall, or 9.44%. Carlson said property taxes make up about 68% of general fund revenues and public safety accounts for nearly half of general fund spending. She told the council the median-value home would see an approximate 10.87% tax increase under the preliminary levy—about $165.81 per year—based on staff estimates.

Council members asked for detail on how staff will track and report priorities identified under the new priority-based budgeting process. Carlson said staff plan additional council briefings in late September and will continue refining the budget through November and the truth-in-taxation public hearing on Dec. 8, with final levy and budget action slated for Dec. 22. She also described state property tax relief programs (the regular and special property tax refunds) and the senior property tax deferral program and directed residents to the Minnesota Department of Revenue for details.

Council discussion emphasized both the progress staff made in cutting the original forecast and the remaining community concerns about rising property taxes and the cumulative effect of other local levies (for example, the HRA and port authority). Several council members praised staff efforts and urged continued work to pare the levy before final adoption. Council member Lowman made the motions to adopt the preliminary tax levy resolution and the preliminary general fund budget. Both motions passed 7-0. Mayor Tim Bussey noted that by state law the preliminary levy can only be lowered after Sept. 8, not increased.

The city will continue public outreach and department budget presentations through fall meetings, and staff said they will return with data and recommendations from the priority-based budgeting software to help the council identify additional reductions before final action in December.