Bloomington adopts 6.96% tax levy, final 2026 budget after months of refinement
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Summary
The Bloomington City Council voted to approve a 6.96% increase in the city portion of the 2026 property tax levy and adopted the final general fund budget; council recorded a 6-1 vote on the levy resolution and discussed offsets and service impacts.
Bloomington City Council on Monday adopted the city's final 2026 property tax levy and general fund budget, approving a 6.96% increase in the city's levy.
City Manager Zach Walker and Finance presenter Kari Carlson told the council that staff had worked through a yearlong priority-based budgeting process and used a one-time transfer from the strategic priorities fund to lower the levy from a recent proposed 7.48% to 6.96% for 2026. "We're proposing a final levy of 6.96%," Carlson said during her presentation.
The council heard that much of the increase relates to public safety costs, including the fire department's transition to a combination staffing model and the absorption of time-limited public safety aid and prior grant-funded positions into the general fund. Carlson said the general fund budget rises by roughly $5 million and noted department-level contributions: the police share represents the largest portion of the levy increase at about 2.62%, followed by fire at 1.47%.
Staff presented the estimated homeowner impact of the levy: roughly $2.39 per week, $10.37 per month, or $249.39 per year for the median valued home. Carlson warned that deeper reductions at this point would begin to affect staffing and service levels.
Council members thanked staff for public engagement and the refinement work. Several voiced concern about using strategic priorities funds for a one-time offset and pressed for structural solutions. Council Member Nelson said he appreciated the broader public engagement and called the result "a budget that I believe is good for the city of Bloomington, and for our residents and for our businesses." Council Member Rivas said she was "not completely satisfied" with using strategic priorities funds and registered opposition to the levy resolution.
Council Member Muir moved the levy resolution and the council recorded a 6-1 vote on the levy resolution with Council Member Rivas opposed; the separate motion to adopt the final general fund budget passed 7-0.
Next steps: staff said it will continue priority-based budgeting work, explore a two-year budget approach for predictability, and return with implementation details as needed.
