Finance Director Amelia Kruger presented the City of St. Louis Park’s proposed 2026 budget and explained the city’s path from a preliminary levy to the revised proposal ahead of the Dec. 15 adoption. Kruger said the revised levy was lowered from an adopted maximum of 8.02% to 7.49% after staff and council actions, including closing four tax increment financing (TIF) districts that added roughly $3 million to the city’s tax base.

“Our revised budget lowers the levy and brings more tax capacity into play,” Kruger told the council, noting the budget fully funds the new Minnesota paid family and medical leave program for city employees, supports a free brush management site in 2026, funds a winter concession stand at the recreation center, and establishes a multiyear plan to sustain the Climate Investment Fund with ongoing dollars.

Residents attending the required truth-in-taxation hearing urged the council to reduce the tax burden. Jake Warner, a 32-year resident, said rising levies are eroding affordability for seniors on fixed incomes. “These tax levies are actually making my affordability less and less,” Warner said, recounting multiyear increases. Other residents echoed that message: “It’s actually gone up over 50% for us,” Evan Entler said of his property tax increase since 2021.

Kruger clarified several technical points raised by council members and residents. She said the city’s decision to decertify four TIF districts added market value that helps lower the levy’s impact and that one year of lowering the levy would not automatically disqualify the city from Local Affordable Housing Aid (LAHA) provided the city maintains its current level of affordable-housing spending.

Council members and staff discussed options for the EDA and HRA levies. Kruger said the city had proposed increasing the EDA levy to $375,000 (from $184,000) to fund ongoing EDA activity, and described the HRA levy as an element that sustains the affordable housing trust fund and the city’s obligation to maintain spending levels to preserve LAHA eligibility.

After public comment and follow-up discussion, several council members asked staff to prepare an amendment reducing the HRA levy by $500,000 for consideration at the Dec. 15 budget adoption. Amelia Kruger said staff could prepare the amendment but would need the explicit dollar instruction now so they can produce the necessary spreadsheets and paperwork showing the exact percentage impact.

Council members said they were moved by residents’ testimony and wanted staff to present an amendment for the December vote, with the understanding the precise percentage impact will be confirmed when staff runs final calculations. Kruger said she would prepare a $500,000 reduction option and confirm the precise levy percentage in the final amendment materials.

Next steps: the council will receive the finalized budget resolution and any proposed amendments at the Dec. 15 meeting, where members will vote on final adoption.