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Board certifies proposed 2026 levy of $51.9 million as staff present preliminary 2026 budget
Summary
Blue Earth County certified a proposed 2026 property tax levy of $51,901,870 (an 8.5% increase) and approved a preliminary 2026 budget projecting $135.6 million in expenditures with an expected draw on reserves; commissioners discussed residential tax impacts and the need to avoid overusing reserves.
Blue Earth County commissioners on Sept. 23 certified a proposed 2026 property tax levy of $51,901,870 and approved a preliminary 2026 budget that projects $135,608,691 in expenditures.
County administrator Bob presented the levy and budget materials. The proposed levy represents an 8.5% increase over the levy assessed for 2025. Bob said residential property owners will likely see the county portion of their tax bills increase by about 14–15% because of shifting property-class valuations, while agricultural parcels are likely to see slight decreases due to declining ag land values; he attributed high pressure on county finances to rising wages, high service demand, stagnant or declining state and federal funding, and inflationary operational costs.
Why it matters: the levy and budget set the county's revenue target and funding levels for 2026, affecting taxpayers and county services. Commissioners characterized the vote as difficult because of the residential tax impact but said delaying increases could make future years worse.
Budget details and fiscal posture: the preliminary 2026 budget totals $135,608,691 in expenditures and anticipates a draw from reserves to balance operations; Bob noted a projected reserve draw of roughly $6 million and said the county has reduced staffing by about 13 FTEs as part of cost-control efforts. Department capital spending was pushed into future years and some projects removed to reduce near-term spending. Commissioners repeated staff cautions about overusing reserves because sustained reserve draws could affect future bond ratings.
Board action: following discussion, a commissioner moved and the board voted to certify the proposed 2026 levy and approve the preliminary 2026 budget. Bob said a public hearing on the budget is scheduled for Dec. 2 at 6 p.m. in the Historic Courthouse.
Context and next steps: certification begins the property-tax notice process required by state law; staff will continue budget work and present final budget and levy figures later in the year after public hearings and additional board review.
Ending: staff recommended certifying the levy to the finance director and proceeding with the public hearing and further budget refinements; commissioners asked administration and department heads to continue cost-control work ahead of final budget adoption.
