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Forest Lake council adopts 2026 budget, sets levy at staff-proposed 7.9%
Summary
After a presentation by Finance Director Ellie Larkin and public comment, the Forest Lake City Council adopted the 2026 budget and set the property tax levy at a staff-proposed 7.9% increase, down from the preliminary 12.59% figure. Councilors said the levy balances infrastructure needs and staffing shortages.
Forest Lake — The Forest Lake City Council voted to adopt the 2026 budget and set the city’s property tax levy at a proposed 7.9% increase after a public presentation and community comment.
Finance Director Ellie Larkin told the council the 7.9% proposal reflects staff and council adjustments, use of the 2025 surplus and rollback of a capital equipment fund. ‘‘Staff is proposing a levy increase of 7.9% or an annual increase of a $102.88,’’ Larkin said during her presentation. She said the earlier preliminary levy adopted in September was 12.59% and that state statute requires the city to present both the preliminary and the current proposal during a Truth in Taxation hearing.
The presentation broke down levy uses, with roughly 30–36% of levy dollars directed to public safety (police and fire) and building services, 7% to public works, 6% to parks and 17% to debt and capital expenses. Larkin said the city’s total requested levy would be about $17.7 million before fiscal-disparity adjustments and about $16.13 million after those adjustments.
Council members and staff stressed that years of deferred maintenance and understaffing have driven some of the budget’s increases. ‘‘We have infrastructure in our city that is falling down,’’ one council member said during debate, urging investment even as the council worked to lower the preliminary levy.
Residents at the hearing urged the council to limit spending. Jamie Deichman asked why park-dedication funding and other line items had risen and warned about affordability for fixed-income residents. Police Chief Peterson said call volumes have risen from roughly 14,000 to 20,000 calls per year over the past decade while the sworn headcount has not increased.
After discussion the mayor moved to adopt the 2026 budget and levy; the motion was seconded and carried on a voice vote.
What’s next: The adopted levy and budget will be published with the city’s final budget documents and staff said information on property tax refund programs is available on the city’s website and the Minnesota Department of Revenue.
