The Forest Lake City Council adopted a preliminary budget and set the maximum levy for 2026, approving Resolution 0922503 and scheduling the statutory truth-in-taxation hearing in December.

City administration told the council the preliminary levy represents a 12.59% increase and estimated an effect on the average homeowner (median assessed home value noted in staff materials) of about $165 annually — roughly $13–$14 per month, as shown in staff materials. “The idea here is to set the maximum budget so we can go down from here but cannot go up,” City staff member Mark said, describing the legal purpose of a preliminary budget submission.

Staff explained the process required by state law: the city must set a maximum preliminary budget to enable the county to mail tax notices and then hold a truth-in-taxation hearing before final adoption, at which the council can reduce but not raise the levy. The administration also described the city’s fund balance policy, which targets an assigned general fund balance equal to 50% of the subsequent year’s total budget expenditures, and explained why that reserve is used to cash-flow operations between semiannual property tax distributions and to protect the city’s bond rating.

The proposed 2026 budget itemized several drivers of the increase, including planned hires and operating additions. Staff highlighted four new positions planned for public safety in the 2026 budget: two officers, one patrol sergeant and one administrative position, and said survey responses showed public safety, roads and parks as top resident priorities.

City staff also summarized an online property-tax survey, noting about 100 responses to date and that most respondents supported an inflationary increase to maintain current service levels; a plurality also supported greater investment in public safety, roads and parks. Council members discussed policy options including exploring alternative levy philosophies used by other nearby cities and emphasizing that the preliminary figure is the maximum and can be reduced before final adoption.

Council members moved, seconded and approved Resolution 0922503 setting the preliminary budget and levy; the motion passed by voice vote as recorded in the meeting.