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CITY COUNCIL <br />STAFF REPORT <br />AGENDA ITEM 2.A. <br /> <br />STAFF ORIGINATOR: Tracy Thoma, Finance Director <br /> <br />MEETING DATE September 22, 2025 <br /> <br />AGENDA ITEM: Consider Resolution No. 25-129, Adopting the 2026 Preliminary Levy <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br /> <br />INTRODUCTION <br />Minnesota Statutes require the City of Lino Lakes to adopt and certify a preliminary property <br />tax levy for taxes payable in the following year on or before September 30th. <br /> <br />The 2026 preliminary levy of $18,120,307, represents a $2,529,217 or 16.22% increase over <br />the 2025 levy. With the projected net tax capacity value increasing 6.75%, the tax rate is <br />anticipated to increase to 43.186% from 39.373%. <br /> <br />The preliminary levy in Resolution No. 25-129 represents the City's maximum levy for 2026. <br />The final levy may be decreased but cannot be raised when it is adopted in December. <br /> <br />BACKGROUND <br />The City Council held two budget work sessions where the following were discussed as it <br />relates to the draft 2026 Annual Budget and 2026-2030 Financial Plan: <br /> <br />August 18, 2025: Tax Levy, 2026 Capital, General Fund Budget <br />September 2, 2025: Enterprise and Rookery Activity Center Fund Budgets <br /> <br />The preliminary levy maintains essential services and programs while the city continues to <br />experience rising costs in the current inflationary environment. Additionally, the City’s <br />preliminary budget and levy anticipates significant increases in the staffing and coverage levels <br />of the Lino Lakes Fire Department. Highlights of the levy increase are depicted in the graph <br />below. <br />Page 66 of 228