By Mayor Tim Busse
In September, the City Council approved the preliminary 2026 tax levy and general fund budget with an increase of 9.44% over 2025.
According to state law, the preliminary levy is the maximum amount the City can collect through property taxes for the coming year. The Council can lower that number, but can’t raise it for 2026.
The Council first started talking about the 2026 budget as work was wrapping up on the 2025 budget. Bloomington typically looks at budgets on a two-year horizon. That first look at the 2026 budget showed an expected levy increase of 17.92%. The biggest cost driver was the expiration of state and federal grant dollars that were being used to fund our new firefighters. The Council, City staff, and the community were in agreement that a 17.92% levy increase was simply too high.
So right after the first of the year, staff began activating a number of levers to lower the proposed tax levy and budget. Through capital and debt planning, reducing the Normandale Lake district levy, using a portion of the 2024 positive budget variance, lowering personnel costs and health insurance savings, staff identified $7.4 million in reductions. That brought the proposed levy increase to 9.44%.
It won’t surprise you that 87% of the proposed budget increase goes to the five core services that cities provide: police, fire, public works, parks and recreation and community development. And to put an even sharper point on that, 53% of the proposed budget increase will go to police and fire.
Keeping Bloomington safe, plowing the streets and providing the best water in Minnesota, maintaining our parks and green spaces, and supporting our business community—Bloomington residents have made it clear that they value these services and have high expectations when it comes to the delivery of these services. The proposed budget reflects those values and expectations.
And it’s one more step in the journey. Just about every Council meeting from now to December will include detailed budget discussions. Please, tune in if you want to better understand the process and hear the thoughtful conversations about the most important work we do as a Council.
Learn more about the 2026 budget
Attend the City’s public hearing about the property tax levy and budget on December 8.
Visit the City’s budget website at blm.mn/budget.
Tune in Monday evenings on BTV 859 HD/BTV 14 SD or the livestream of City Council meetings at blm.mn/btv-live to see budget discussions or watch past meetings on the City’s YouTube channel at blm.mn/youtube.
Share your thoughts online at blm.mn/budget.
