East Bethel council sets preliminary 2026 budget and levies, schedules final vote for December

The East Bethel City Council on Sept. 8 adopted a set of preliminary budget and levy measures that set spending limits for the 2026 fiscal year and scheduled a final adoption hearing for Dec. 8. Mike (finance staff) presented the 2026 preliminary general fund expenditure budget, which he said is projected to increase by 7% — roughly $479,400 — and would require a levy increase of about 3.8% or $246,100 to balance the draft plan. "The preliminary ... means you can set it at a given amount. It can't go above that, but you can certainly reduce it by, December 8," Mike said. The council moved and approved four related items on the consent calendar: Resolution 2025-48 to set the final levy and budget date, Resolution 2025-49 to set the preliminary levy and budget, Resolution 2025-50 to set the preliminary EDA levy and budget, and Resolution 2025-51 to set the preliminary HRA levy and budget. The budget presentation identified primary cost drivers including an 8% cost-of-living adjustment in a union contract; increased salary and benefit costs for nine union and 13 nonunion positions plus 40 paid on-call firefighters; a roughly 7% increase in a law enforcement contract (about $110,000); a 5% increase in the city attorney contract (about $10,000); a $21,000 increase for election costs in 2026; and new costs tied to the Minnesota Paid Leave program (estimated at $24,000). The presentation also noted planned contributions to equipment and capital funds, and a planned CivicPlus module implementation estimated around $40,000. Mike told the council the budget remained the same as the version discussed in July. The resolutions were adopted by voice vote; council members did not record roll-call tallies in the minutes. City staff will return to the council with a proposed final budget and levy for formal adoption on Dec. 8, 2025.