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Bloomington staff propose 7.48% levy increase for 2026; residents urge relief at public comment
Summary
Finance staff presented a proposed 2026 property tax levy increase of 7.48% after $1.72 million in reductions; multiple residents at an informal public comment session urged cuts, senior relief, and greater budget transparency ahead of the Truth in Taxation hearing Dec. 8 and final levy setting Dec. 15.
City finance staff told the Bloomington City Council on Nov. 24 that the proposed 2026 property tax levy would increase by 7.48% after refinements from an initial conceptual increase of 17.92% and a preliminary 9.44% levy. The staff presentation attributed more than half of the proposed increase to public safety costs as the fire department transitions to a combination staffing model and the city absorbs recurring police positions previously funded by one-time state aid and federal SAFER grants.
Kari Carlson explained the adjustments that reduced the levy by roughly $1.72 million — lower-than-forecast debt service, updated permit revenue estimates (+$625,000), paid-on-call firefighter expense trends, and recognition of expected state fire aid. Carlson also reviewed the budget schedule: an official Truth in Taxation public hearing is scheduled for Dec. 8 at 6:30 p.m., followed by a final levy and budget decision on Dec. 15.
During the informal public comment period, several residents described significant hardship from rising property taxes. Suzanne Boston said her taxes rose about 12% this year, totaling more than 22% over two years, and warned she may be forced to sell her home. Linda Blair and others criticized discretionary spending (citing a City Hall remodel and other projects) and urged the council to limit spending to core services. Speakers repeatedly called for targeted relief for seniors and clearer budget transparency.
Council members responded with clarifications: Council member Carter noted the HRA and Port Authority levies are separate entities and that council salaries are not a driver of the levy; staff said the city can provide details on local government aid calculations and the revenue contribution from major local sources including the Mall of America. Council members acknowledged the burden on residents, discussed priority-based budgeting and working capital accounts, and pledged further review before the Dec. 15 final vote.
No formal levy decision was taken at the Nov. 24 meeting; staff and council committed to additional outreach and data for the upcoming Truth in Taxation hearing.
