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Albert Lea council adopts amended 2026 levy after residents raise assessment and affordability concerns
Summary
After a packed Truth-in-Taxation hearing where landlords and residents described sharp assessment increases, the Albert Lea City Council amended its levy to remove a $53,000 soil-district debt and approved the 2026 levy with a 5.3% city increase. Council also reduced the HRA levy and directed staff to identify contingency funding if needed.
Albert Lea City Council approved its amended 2026 tax levy on Dec. 8 after a lengthy Truth-in-Taxation public hearing in which multiple residents and property owners urged the council to limit pain from recent, large increases in assessed values.
Finance Director Christy Berlaug told the council the city’s proposed levy package would total $9,286,000 and reflected a 5.9% increase before the amendment. “If your valuation had stayed the same, you would actually see a decrease in your taxes,” Berlaug said, but she acknowledged that some property owners have seen valuation jumps far above the city average and that the city cannot control county assessment methodology.
At the podium, local landlords and residents described how higher assessments could be passed through to tenants and create displacement pressure. “If you raise our taxes as a landlord, that's gonna roll downhill. That's gonna go right to our tenants every time,” said John Gerke, who identified himself as a local property owner. Jerry Collins, a business owner, said one of his properties showed a 457.7% proposed increase for 2026 and urged more transparency about assessment drivers.
Councilors discussed options to shave points off the levy. City staff said one discrete change—removing a $53,000 debt-service item tied to the Blazing Star soil district and banking on future property sale proceeds—would lower the levy from the proposed 5.9% to roughly 5.3%, but carried a small timing risk if sale proceeds do not arrive as expected. Finance staff said the council could adopt the reduction but should direct staff to identify a backup fund or reserve to cover the payment if reimbursements are delayed.
Councilor Anderson moved to adopt the levy and later amended the motion to remove the soil-district debt and require a council-approved backup plan if proceeds do not arrive in 2026. The amendment passed on a roll-call vote; the amended levy carried with the majority present (motion carried). The council also voted to reduce the HRA levy request from $266,000 to $125,000 after HRA leadership agreed to the smaller amount.
The council emphasized the limits of the city’s authority on assessments—Freeborn County conducts property valuation—but said it would continue pressing for better information and encourage residents to use the assessor appeal process in April. City Manager (staff speaker) and finance staff reiterated that the city’s tax rate actually decreased compared with 2025, but rising assessed values mean many taxpayers will see higher bills.
The council concluded the hearing by adopting the 2026 levy as amended, approving the general fund budget and moving on to other agenda items. Staff said residents who believe their valuation is incorrect should file an appeal with the county assessor during the spring appeal window.
The council moved to several other budget-related items following the levy vote, including fee-schedule changes, water and sewer rates, and capital projects that were also adopted earlier in the meeting.
