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Lake Elmo council adopts preliminary 2026 budget, sets levy hearing after 3-2 vote
Summary
The Lake Elmo City Council approved a proposed 2026 general fund budget and property tax levy and set a public hearing for Dec. 16, 2025, following a 3-2 vote after an extended discussion about infrastructure levies, debt projections and alternatives for pacing capital funding.
The Lake Elmo City Council on Aug. 25, 2025, approved Resolution 2025-060 adopting a proposed 2026 general fund budget and property tax levy and set a public hearing for Dec. 16, 2025, at 7 p.m. The motion passed on a 3-2 vote.
Council members and city staff framed the vote as a first step in a larger strategic financial planning process. Finance Director Adler presented the proposed 2026 numbers: estimated tax revenues of about $6.3 million, non-tax revenues of just over $2.2 million and total general fund expenses of about $8.8 million — an 11% increase over 2025. The total proposed levy shown in the presentation was $11,497,785, a roughly $1.4 million (14%) increase from the prior year. Adler told the council the median-home impact in Lake Elmo would be about $179 annually (roughly $15 per month) under the proposal.
Adler…
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