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CITY COUNCIL <br />STAFF REPORT <br />AGENDA ITEM D. <br /> <br />STAFF ORIGINATOR: Tracy Thoma, Finance Director <br /> <br />MEETING DATE November 24, 2025 <br /> <br />AGENDA ITEM: 2026 Final Proposed Budget <br /> <br />INTRODUCTION <br />2026 Final Proposed Budget Overview <br /> <br />BACKGROUND <br />The City Council adopted the 2026 preliminary tax levy on September 22, 2025. The levy <br />total of $18,120,307 represented a $2,529,217 or 16.22% increase over the 2025 levy. This <br />levy was certified to Anoka County and was included on the proposed 2026 tax statements <br />sent to property owners. <br /> <br />The following adjustments were made after the adoption of the 2026 Preliminary Levy: <br />• MN Paid Leave expenses were reduced. Met Life will administer the program <br />instead of the State of MN resulting in lower premiums. It was also determined that <br />the city would not be responsible for paying the “employee” portion of the <br />premium. ($42,810 reduction) <br />• Final adjustments were made to wages and benefits for recent new hires where <br />estimates were made because actual amounts were not known. ($7,842 reduction) <br /> <br />The revised proposed 2026 final levy totals $18,069,665 and represents a $2,478,575 or <br />15.90% increase over the 2025 levy. <br /> <br />2026-2030 Financial Plan <br />The 2026-2030 Financial Plan has been updated to reflect the 2026 final levy and budget. <br />The Financial Plan is a guiding document to be used for decision-making. Preparation of <br />the plan and the annual budget are closely linked. Projects and financing sources <br />outlined in the plan are not authorized until the annual budget is adopted by the City <br />Council. <br /> <br />REQUESTED COUNCIL DIRECTION <br />Staff is requesting direction from the City Council regarding any potential changes to the <br />2026 Proposed Budget and Tax Levy prior to the public hearing and final adoption on <br />Page 67 of 406