Council lowers tax levy

City News December 9, 2025

The Albert Lea City Council lowered its property tax levy for 2026 by more than $200,000, from $9.5 million proposed in September to $9.3 million. While still proposing a levy increase, it would be lower than first proposed, from 8.0% to 5.3%.

The council lowered the levy from the original proposal because the final numbers for insurance and workers compensation decreased for 2026. The council cut another $53,000 toward cleanup of contaminated soil at the Blazing Star Landing because sale of property there should cover that cost.

The impact to individual homeowners depends on the property valuation set by Freeborn County:

• If the valuation stays the same, then city property taxes would actually decrease. That’s because the city has seen an increase in development and property values. In other words, the tax burden is spread among a higher number and higher value of properties.
• If the valuation has increased, then city taxes will also increase.
• Increases in property valuations are driving many of the steep tax increases that residents are reporting. To ask questions about the valuation process, call the Freeborn County Assessor’s Office at 507-377-5176.

Also Monday, the council adopted its fee schedule for 2026, including a 6% increase in water and sewer fees to keep saving for rebuilding the wastewater treatment plant and other projects. The average utility bill would increase by $5 per month from $83 to $88.