Lake Elmo council reviews proposed 2026 levy, asks staff to seek cuts and options

Finance Director Clarissa Hadler told the Lake Elmo City Council at an Aug. 14 workshop that the city's proposed levy for 2026 is $12,205,453, an increase of about $2 million and a 21% rise from the prior year.

"We are projecting the tax rate. We go from the current the 2025 rate of 26.84 up to 31.72," Hadler said, describing the preliminary levy and the estimates that underlie it.

Why it matters: The increase would raise the tax impact on a median-value home by a little more than $300 (from about $1,616 to $1,926 in Hadler's example) and comes as the city budgets for new positions, software and maintenance of recently completed city facilities. Hadler told the council the larger levy supports increased general-fund operations, the start of several capital projects and a step toward setting aside money for long-term asset depreciation.

The council's discussion centered on whether to accept the preliminary levy as proposed or ask staff for revisions to reduce the tax increase. Council Member Jairusic said the levy as presented was too large: "I just don't see…