Lake Forest Park Council debates $10M budget and potential 24¢ tax levy increase

The City Council of Lake Forest Park convened on July 10, 2025, to discuss pressing budgetary concerns and potential tax increases aimed at maintaining city services. The meeting highlighted the ongoing challenges the city faces regarding its financial health and the implications for both staff and residents.

The discussion began with a focus on the current budget status, with council members expressing concerns about the city’s reliance on its general fund. One council member noted that the city is currently operating at a deficit, drawing approximately $900,000 from the general fund to maintain a status quo budget. This situation is projected to worsen, with estimates suggesting a potential $2 million deficit per biennium if cuts are restored. The member emphasized the importance of maintaining a healthy general fund balance, currently set at $10 million, to prepare for unforeseen expenses and to support city operations effectively.

Concerns were raised about staff workload and morale, with council members warning that the current budget constraints could lead to burnout among employees. The need for adequate staffing and resources was underscored, with calls for a more sustainable budget that respects the contributions of city employees and ensures the delivery of essential services.

The conversation then shifted to the potential for a property tax increase, with council members debating the merits and drawbacks of raising the levy rate. One member pointed out that previous attempts to increase property taxes had not been successful, and expressed hesitance to ask citizens for more financial contributions, especially given the regressive nature of property taxes. Instead, alternative revenue sources, such as a proposed sales tax increase, were suggested as a means to avoid cutting services in the coming years.

The council acknowledged the mixed sentiments from residents regarding tax increases, with some expressing a desire for the city to operate more efficiently and leaner. The discussion concluded with a recognition of the need for careful consideration of any proposed tax increases, balancing the city’s financial needs with the economic realities faced by its residents.

Overall, the meeting underscored the critical financial challenges facing Lake Forest Park and the importance of strategic planning to ensure the city can continue to serve its community effectively while maintaining a healthy budget. The council plans to continue discussions on these issues in future meetings, with an emphasis on finding solutions that align with both the city’s operational needs and the expectations of its citizens.