Council OKs preliminary levy
City News September 30, 2026
At its Sept. 28 meeting Monday, the Albert Lea City Council voted 6-1 to approve its preliminary property tax levy for 2027. The maximum levy would be $9.96 million, a 7.87% increase over the 2026 tax levy. Councilor Keith VanBeek voted no while the rest of the councilors voted yes.
Reasons for the increase include:
- The city increasing staff wages, based on market studies, to retain and recruit staff like police officers and utility workers.
- Freeborn County is charging the City of Albert Lea $179,000 more for shared services, such as dispatch and records, at the joint city-county Law Enforcement Center.
- Higher costs for storing data from police body cameras.
Local property taxes would make up 32% of the city’s total $22.8 million budget for 2027. The rest of the funding comes from a variety of sources:
- 30% from local government aid provided by the State of Minnesota
- 16% from charges for services
- 13% from transfers from utility funds – sewer and water – to cover expenses like legal fees, utility billing, technology and administration
- 9% from franchise fees for gas, electricity and cable television
Public safety makes up the largest portion of the city’s general fund:
- 43% for police and fire protection
- 20% for culture and recreation, including the library, parks and recreational facilities
- 16% for public works including streets and engineering
- 16% for general government including the city council, community development, finance and legal services
- 5% for capital purchases like vehicles
The impact to homeowners would depend on their property valuation as set by Freeborn County:
- For every $100,000 in value, the city’s portion of the property tax would increase by $35 per year or $2.91 a month.
- For example, on a home valued at $250,000, the increase would be $87 per year or $7.25 a month.
The council may decrease the levy – but not increase it – when adopting the final levy in December.
In addition to the general fund levy, the Albert Lea City Council voted 5-2 on a preliminary $170,000 levy for its recently-established Economic Development Agency. VanBeek and Councilor Ted Herman voted against this levy with the remainder of the council voting to approve it.
This levy would fund:
- A housing project
- Grants for properties in the historic downtown and on main commercial corridors
- Other expenses related to housing and economic development          Â
The impact to homeowners would be $9.94 per year, or 83 cents a month, per $100,000 in value.
To learn more and provide input, residents may:
- Contact their city councilor
- Read the agenda packet
- Watch the Sept. 28 meeting online
- Attend the truth-in-taxation hearing on Dec. 14 at 7 p.m. at City Hall, 221 E. Clark St.
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