East Bethel council adopts 2026 budget and sets levies, uses $200,000 from reserves to limit increase

The City of East Bethel on Dec. 8 adopted its final 2026 budget and property-tax levies after a staff presentation and a brief public hearing. A staff presenter said the city’s general fund is budgeted to grow about 7% in 2026, from $6,976,300 to $7,455,700, and that the city plans to use $200,000 of its roughly $5,200,000 fund balance to minimize the levy increase.

The presenter said revenues in the most recent completed year came in at about 102% of budget while expenditures ran about 95%. The city’s fund-balance policy calls for maintaining at least 40% of next year’s general-fund expenditures; staff reported the current balance represents about 75% of the 2025 budget. The presentation listed primary revenue sources, noting that roughly 77% of general-fund revenue derives from property taxes.

Council Member Speaker 4 moved to adopt Resolution 2025-65, which approves the final 2026 property tax levy and budget; the motion was seconded and approved by voice vote. The council also separately approved Resolution 2025-66 setting the 2026 Economic Development Authority levy and Resolution 2025-67 setting the Housing and Redevelopment Authority levy.

Staff outlined budget drivers: personnel costs account for roughly 42% of the general fund, the city budgeted 22 full-time positions for 2026 and anticipates an 8% cost-of-living salary increase required by a union contract. Contracted services noted included an increase to the Anoka County law enforcement contract of about $110,000 (7%) and a roughly 14% increase for Metro EyeNet IT services.

City staff said the combined general-fund and debt-service levies would increase about 3.8% overall for 2026, from $6,392,500 in 2025 to $6,638,600 in 2026; the general-fund levy alone was projected to rise about 6% while the debt-service levy was projected to fall by about 8%. Staff recommended opening the floor for public comment before taking the vote, after which the council acted.

What’s next: The resolutions adopt the 2026 budgets and levies as presented. Staff will proceed with the administrative steps needed to issue property-tax statements and to implement the budget. Any future changes requested by council would require a formal amendment.