In a move to set the financial stage for 2026, Bloomington's City Council approved a preliminary tax levy and general fund budget last September, setting the bar with a 9.44% increase compared to the previous year. As per the dictates of state law, this levy represents the cap on what the city may requisition through property taxes in the coming year, with the Council having the option to reduce, but not escalate this number for 2026, according to the Mayor's Memo, cited by the City of Bloomington's official website.
Early discussions around the 2026 budget, which emerged in the tail-end phases of the 2025 budget finalization, initially forecasted a hefty 17.92% levy increase. This alarming number was largely influenced by the looming cessation of state and federal grants that were a financial lifeline for newly added firefighters. In response, the City Council, staff, and community recognized that such a steep increase was untenable, necessitating a revision to the draft budget, as was first reported by the City's officials.
To mitigate the stark increase, the Council enacted a series of fiscal countermeasures at the year's commencement. These included meticulous capital and debt planning, alongside a reduction in the Normandale Lake district levy. A portion of the positive 2024 budget variance, along with cuts in personnel expenses and health insurance savings, was also harnessed to yield a cumulative $7.4 million in expenditure reductions, effectively slicing the levy spike down to 9.44%, as outlined in the Mayor's briefing.
It's no revelation that the lion's share of the proposed increase—87% to be exact—is earmarked for essential city services such as police, fire, public works, parks and recreation, and community development. Delving deeper, a sizable 53% of the additional budget allocation is set to bolster police and fire services alone. This distribution is a reflection of the Bloomington residents' clear-cut priorities and expectations for safety, infrastructure, and local business support, as the city strives to uphold its commitment to these services, captured in the official statements from the City Council.
The budgetary journey for Bloomington is ongoing, with the Council slated to dedicate the remainder of the calendar to rigorous budget discussions before final adoption. Residents interested in the fiscal trajectory of their city can learn more by attending the public hearing set for December 8th, or by tuning into the City Council's meetings broadcast on BTV or streamed online at various digital venues outlined on the City's website, as the Mayor's Memo implores. Contributions and opinions are also welcome via the City's budget feedback portal.
