BP city seeks 14.7% levy hike

At first blush, the 2026 preliminary tax levy for the city of Blooming Prairie seems gulp-worthy, but officials expressed confidence in reducing it by half.

The biggest hike in the preliminary general fund budget came from the capital equipment fund.

The number the BP City Council members saw at their Sept. 8 meeting was $279,050 – but quotes that came in after the budget was formed could raise that number to nearly $300,000.

“It looks like, based on those numbers, the preliminary levy is set for 14.7%,” said City Administrator Tony Martens, who assumed the role Aug. 18.

Still, he said, “there is some padding in the capital fund.”

Dropping that fund to $200,000 “would bring the levy down to 7.23% almost immediately,” Martens said.

Capital expenses scheduled for 2026 include the purchase of a new payloader, sealcoating city streets, turnout gear for firefighters, a woodchipper, sidewalk repair and more.

“Just with the limited amount of time that I’ve had to look at (the proposed budget), we could potentially go even lower than that if we have a budget work session after this preliminary budget is set,” Martens said.

“I would recommend setting the preliminary levy at 14.7%, with the intention of hopefully being in the seven – or even lower – percentage for a final levy,” he said. “I think that’s a great place to start.”

Councilor Greg Johnson said the council had “asked everybody to kind of sharpen their pencils when they looked at their own budgets,” referring to the city departments.

“We will sharpen them,” Martens responded.

“And I know inflation takes over, too,” Johnson said.

The insurance renewal rate for city employees went up by 12.24%, which the council last month decided would be absorbed by the employees. City staff will receive a 3% cost of living adjustment for 2026.

“We sort of knew this was going to happen, bringing somebody on at this point,” said council member Bill Newman of Martens having to jump into budget planning his first week on the job.

“We’ll figure something out,” he said.

With that, councilors approved the 2026 preliminary budget and tax levy and set a Truth in Taxation hearing for 7 p.m. Dec. 8.

The sewer and storm sewer funds will remain steady in 2026, with no increases expected.