On the agenda: Blaine City Council Workshop Meeting — license plate reader (Nov 16)

City of Blaine
City Council Workshop
November 16, 2026 | 5:30 PM
Blaine City Hall
10801 Town Square Drive NE
Blaine, MN 55449

AGENDA
NOTICE OF WORKSHOP MEETING
In accordance with the provisions of Section 3.01 of the Blaine City Charter, a Council Workshop meeting
is scheduled for the following purpose:

1.

Call to Order

2.

Roll Call

3.

New Business
3.1.

2026-212

Refuse Fund 2027 Budget (15 Minutes)
Sponsors: Jason Zimmerman, Finance Director

3.2.

2026-213

2027 Budget; Truth-in-Taxation Preview (30 Minutes)
Sponsors: Jason Zimmerman, Finance Director

3.3.

2026-214

Closed Session Pursuant to Minnesota Statute 13D.05, Subd. 3(a) - City
Manager Performance Review (45 Minutes)
Sponsors: City Council

4.

Other Business

5.

Adjournment

Page 1 of 20

City of Blaine
Staff Report
File Number: 2026-212

Agenda Date

Status

November 16, 2026
In Control

File Type

City Council

Workshop Item

New Business - Jason Zimmerman, Finance Director
Agenda Item # 3.1
Refuse Fund 2027 Budget (15 Minutes)
Executive Summary

Background
Hauling Contract
At the September 7, 2022 Workshop, Council discussed both the proposed 2023 Refuse Utility Fund
budget, and the refuse and recycling contract. The contract has been held by Walters Recycling and
Refuse, Inc. (“Walters”) of Blaine since 2016. The initial contract, which was for a 5½-year term, was
extended in 2019 by the City Council. During the September 7, 2022 Workshop, staff indicated that a
request for proposals (RFP) would need to begin in mid-2023 to allow the city time to prepare, solicit,
and award the contract. Council voiced general support for an alternative to the RFP process, as there is
no legal requirement that the city engage in an RFP for this service. However, before taking formal
action, Council requested that staff research the hauling contracts and fees/rates of other cities with
organized refuse hauling before deciding the next step regarding the contract.
At the December 5, 2022, Workshop, Council was provided data regarding the current fee structure for
sanitation services. At the time of the discussion, Blaine was one of 13 known cities in the metro area
with organized hauling and research indicated that Blaine’s fees for garbage and recycling services were
the lowest of those cities. Council direction was to waive the RFP process, and work with Walters and
the City Attorney to directly negotiate a new contract with a duration between three and five years.
Between December 2022 and September 2023, City staff, representatives from Walters, and the City
Attorney drafted, commented on, and negotiated a proposed agreement that was presented to the
Council at the October 2, 2023, Workshop. On October 16, 2023, a new contract with Walters Recycling
and Refuse, Inc. for organized collection of garbage, refuse, recyclable materials and yard waste from
July 1, 2024, to June 30, 2029, was approved by Council.

Page 2 of 20

Partnership
Since securing the contract in 2015, Walters has worked diligently with the City to contain costs.
Examples include:
• Walters recommended changes to the size of the recycling carts, resulting in an immediate and
sustained 30% increase in recycling tons collected.
• Walters alerted the city of instances where individuals took advantage of the city’s unlimited
service to remove bulky items such as mattresses, carpeting, and construction material.
Adjustments were made to reduce the amount of these bulk items, reducing costs to both
residents and the city.
• In 2022, with Waters' assistance, the city launched a pilot program for organic waste drop-off.
Discussions continue around success and the next steps in growing the program.
• When Great River Energy closed its Anoka County disposal site, Walters negotiated favorable
terms to dispose of solid waste and pass those savings to Blaine.
Service
The city receives few complaints about the service. According to the existing contract, Walters is
required to document and address all concerns promptly. From August 1, 2025, to July 31, 2026, Walters
received 74 complaint calls. The number of complaint calls has been consistent with the annual average
of approximately 85 complaints per year recorded during the previous five years, from June 1, 2019, to
July 31, 2025. During the recent 12-month period, Walters collected or tipped approximately 2,000,000
residential carts in Blaine. This results in approximately 37 complaints for every 1,000,000 carts tipped,
which is consistent with the prior five-year average of around 40 complaints per 1,000,000 carts. Per
Walters, of the 74 complaints received, the most common reasons are listed below and are consistent
with historical reason codes:
• Missed pickup - Many of these are from customers who fail to get their cart out by 7 a.m. on the
service day, but there seems to be an occasional legitimate miss due to driver error. Walters
implemented a 360-degree camera system, which is utilized for both safety and service
verification purposes. The system has proven to be successful on both counts. We can now
rationally discuss missed pickup issues with customers with confidence by knowing whether it is
driver or customer error.
• Grass clippings or trash/recycling blown into the street - Drivers have been instructed to look
closely for items that may fall or blow out of carts or trucks, especially on windy days. In most
cases, when a customer calls, either the route driver or someone from operations will drive to
clean up any mess.
• “Half-Dumps” - Complaints that the cart wasn’t completely emptied when the driver was
dumping it into the truck. This does happen on occasion when the customer packs the cart full.
When we do get a report, in most cases, we will either go back and empty the cart or offer to pick
up extras the following week if that option works for the customer.
• Confusion over bulky waste pickup and/or cost - Customers complain that not all the items left
out were picked up. In many cases, this is due to the customer not notifying us about the extra
item, not paying for the item when applicable, exceeding the six bulky item annual limit, or lack
of clarity around what items are accepted.
• Yard waste cost - This yard waste season, there was only 1 complaint about the pricing of the
yard waste service compared to about 12 last year.

Page 3 of 20

Billing Process
Refuse and recycling fees are based on the city’s cost to collect and transport waste, typically referred to
as “hauling fees”, to a solid waste facility and dispose of these items, typically referred to as “tipping
fees”. Hauling fees are paid directly to Walters as part of the city’s contract, while tipping fees are a passthrough cost charged by the waste facility based on the weight (tonnage) of waste disposed at the
facility.
Hauling Fees
Generally, the overall terms and requirements of the current contract are consistent with the prior
agreement. One of the most significant changes to the agreement included the utilization of
the Consumer Price Index (CPI) to determine annual rate changes. Annual changes to the index are used
to adjust the contract price that the city pays to Walters for their services. Using the CPI for municipal
garbage and trash collection contracts has become an industry standard and Walters has implemented
this approach for all municipal contracts and most commercial agreements, including school districts,
colleges, and large homeowner's associations. By considering the impact of inflation, the CPI provides a
metric-based approach to determining annual price increases. This eliminates arbitrary numbers that
may not accurately reflect the current business environment. The observed CPI change from July to June
is proposed to be the basis for any increase effective January 1 of the following year. The CPI change for
July 2025 to June 2026 is calculated to be 2.94 percent.
The table below outlines the historical fees charged by Walters to collect and transport each service
account. The city is charged the same amount regardless of the garbage cart size (i.e. 38, 68, or 96gallon).
Hauler Fees
2020

2021

2022

2023

2024
(Jan-Jun)

Garbage

$7.57

$7.82

$8.07

$8.33

$8.60

Recycling

$3.56

$3.68

$3.80

$3.92

Total

$11.13

$11.50

$11.87

Contract Increase %

3.25%

3.32%

3.22%

2024
(Jul-Dec)

2025

2026

2027

$11.25

$11.54

$12.19

$12.55

$4.05

$4.18

$4.29

$4.53

$4.66

$12.25

$12.65

$15.43

$15.83

$16.72

$17.21

3.20%

3.27%

21.98%

2.60%

5.60%

2.94%

Tipping Services
Garbage collected from residential properties is taken by truck to a transfer station or directly to a
landfill. The truck is weighed on a scale as it enters, and the facility charges a tipping fee based on that
weight. These tipping fees, or the cost to landfill disposal, are charged directly to the city and not
marked up by Walters. This means the city is paying the actual cost at the time of disposal. While this
process is transparent, it does create variability in the largest cost of the city’s coordinated waste
program, as tipping fees fluctuate annually, with 2027 rates projected at $85.10/ton.
Beyond the cost to landfill waste, recycling offers a chance to recover some of that expense. Recyclables
are taken to a sorting facility, where cardboard, paper, aluminum, steel, and certain plastics are
separated, baled, and sold on commodity markets. Because prices for these materials fluctuate with
Page 4 of 20

global demand, the sale of recyclables can help offset disposal costs and, at times, even bring in a small
return. Not all materials are equally valuable. Aluminum and cardboard tend to be worth the most,
while mixed paper, glass, and some plastics are worth little and can cost more to process than they
earn. When market prices are strong, sales can cover processing costs and may return revenue to the
city through a revenue-sharing arrangement. When prices are weak, the city may need to pay for the
disposal of these recyclable materials. The city does not budget for the recycling program to generate
revenue, as these markets are dynamic and unpredictable.
Disposal Fees
2020

2021

2022

2023

2024
(Jan-Jun)

2024
(Jul-Dec)

Landfill Tipping (per
ton)

$59.18

$62.68

$64.46

Increase %

0.00%

5.91%

2.83%

2025

2026

2027

$66.18

$67.92

$72.00

$75.74

$80.28

$85.10

2.66%

2.63%

6.00%

6.00%

5.19%

6.00%

Score Grant
The other primary revenue source the fund receives is a Select Committee on Recycling and the Environment
(SCORE) grant. The SCORE grant is a reimbursement grant for the costs such as recycling advertising,
postage, organics drop-off contract and expenses, and Saturday recycling events. More information on the
SCORE grant will be brought forward when Council is asked to consider the renewal of the SCORE agreement
with Anoka County in late October 2026.

Proposed Residential Rates for 2027 (Current Hauler Services)
The proposed 2027 rates have been set to collect the minimum fees required to cover the cost of the
service. This will allow the city to cover the cost of each service option equitably. The intent of the
Refuse Fund is to break even, while maintaining a level of fund balance to provide liquidity for paying
operating expenses and managing any delinquencies in the collection of fees. Proposed 2027 rates
would represent an increase of 5.15 percent across all cart sizes. The proposed rate includes the statemandated 9.75 percent solid waste management tax.
City Rate and Service Comparison
Cart Size Refuse

2026 Rate

2027 Rate

Change $

Change %

96 – Gallon

$82.17

$86.40

$4.23

5.15%

68 – Gallon

$70.50

$74.13

$3.63

5.15%

38 – Gallon

$62.01

$65.20

$3.19

5.15%

Senior/Reduced

$41.10

$43.22

$2.12

5.15%

Reviewing the list of other metro area coordinated hauling contract fees helps evaluate the costeffectiveness of the city’s service by showing what comparable communities pay for similar collection. It
is a useful starting point, but price alone does not measure value. Fees vary with service levels (cart
sizes, recycling, organics, and bulky waste pickup), household density, disposal costs, and contract
length. A lower fee elsewhere may reflect fewer services or costs that are shouldered elsewhere, while a
Page 5 of 20

higher fee may buy reliability or added features. Some of the most important factors are also the
hardest to quantify, including customer service responsiveness, missed-pickup rates, resident
satisfaction, and the reduction in truck traffic and street wear. Reviewing how other contracts handle
annual rate adjustments and performance standards can also show where the city has an opportunity
to improve with future contract negotiations.
Metro Area Comparison
2026 Rates Unless Otherwise Noted
City

96 Gallon

68 Gallon

38 Gallon

Notes

Blaine

$86.40

$74.13

$65.20 Proposed 2027 Rates

St. Louis Park

$236.55

$154.34

$108.42 Includes Yard Waste & Organics

Robbinsdale

$51.11

$45.87

$39.30

St. Paul

$146.66

$119.80

$86.08 12 Bulk items for each cart size

White Bear Lake

$136.17

$93.10

$55.79

Columbia Heights

$143.75

$122.19

$118.23 Includes trash, recycling, and bagged yard waste

Hopkins

$107.70

$96.03

$82.38

Ham Lake

$87.03

$78.81

$61.32

Champlin

$85.83

$71.61

$57.36

Vadnais Heights

$103.95

$84.99

$72.72

Forest Lake

$87.57

$84.42

$75.30

Circle Pines

$63.69

$48.15

$37.29

Average

$113.64

$89.45

$71.62

Possible Old Rate - No change on city website from
2025

Possible Old Rate - No change on city website from
2025

Walters Organics Proposal
At the March 16 and September 14 Workshops, Walters Recycling and Refuse presented its proposal to
offer curbside organics collection to Blaine residents in addition to existing refuse and recycling
services. Under the proposal, residents would place organics in designated durable bags inside their
existing refuse carts, and the material would be separated from refuse at Walters' facility using its
automated sorting technology. The city currently offers a voluntary drop-off program at City Hall, in
place since January 2022, with approximately 700 registered residents and about 18 tons of organics
collected annually with funding provided through the SCORE grant.
The proposal carries several significant terms: a charge of $22.50 per residential account per quarter,
applied to all residential accounts regardless of participation, a 10-year contractual commitment, and a
yearly inflation adjustment. Walters has also indicated that costs would increase as participation grows.
Because the charge applies to every account, it would require a corresponding increase to all residential
utility bills, or $90 per account annually. Across approximately 23,562 residential accounts, this equals
about $2.12 million in additional annual solid waste charges. Applied to current 2026 rates, the change
Page 6 of 20

would raise quarterly bills by between 27.4% and 36.3% depending on cart size. These figures illustrate
the impact at current rates and do not reflect the proposed rate adjustments identified earlier in the
staff report.
The regulatory backdrop allows time to evaluate options. Anoka County Solid Waste Ordinance #2026-1,
adopted July 28, 2026, requires municipalities with populations over 5,000, including Blaine, to make
residential curbside organics collection available by December 31, 2030, and to collect organics,
recycling, and refuse on the same day. The ordinance does not prescribe a vendor or collection
technology. The city's current refuse and recycling agreement expires in June 2029, so the next
competitive procurement could incorporate organics directly. Entering a separate 10-year organics
agreement beforehand could limit the city's flexibility to evaluate organics alongside refuse and
recycling, consideration of other technologies or collection models, or the ability to bundle services in
the next RFP. It would also require any future hauler to use the Walters Transfer Station exclusively for
the remainder of the term. Uncertainty remains around participation levels, processing capacity,
program costs, grant funding, and the regional organics market.
At this, staff would recommend continuing discussion with Walters regarding organic waste in 2027
however not implement at this time. Given the negative feedback staff and council have received
regarding utility rates, now would not be an appropriate time to consider additional charges on the
refuse bill related to organics. Staff would continue to discuss the proposal and bring a workshop item
forward when appropriate.
Strategic Plan Relationship

Board/Commission Review

Financial Impact

Public Outreach/Input

Staff Recommendation

Attachment List
1.

Refuse Fund Summary

Page 7 of 20

City of Blaine, Minnesota
Refuse Fund - 603
Summary of Revenues, Expenses, and Change in Cash (Unaudited)
2027 Budget - As of October 12, 2026

2025 Adopted

2026 Adopted

2026 Amended

Budget

Budget

Budget

2027 Budget

2028 Projection

2029 Projection

2030 Projection

2031 Projection

Operating Revenues
Refuse & Recycling Charges

$

Total Operating Revenues

6,166,874

$

6,659,137

$

6,659,137

$

7,046,463

$

7,469,251

$

7,917,406

$

8,392,450

$

8,895,997

6,166,874

6,659,137

6,659,137

7,046,463

7,469,251

7,917,406

8,392,450

8,895,997

8,697,054

Operating Expenditures
6,082,000

6,534,070

6,534,070

6,888,881

7,302,214

7,740,347

8,204,767

Contractual Services

128,000

119,000

119,000

119,000

122,570

126,247

130,034

133,935

Other Services & Charges

179,700

194,100

194,100

180,800

183,464

186,288

189,281

192,454

6,389,700

6,847,170

6,847,170

7,188,681

7,608,248

8,052,882

8,524,082

9,023,443

(222,826)

(188,033)

(188,033)

(142,218)

(138,997)

(135,476)

(131,632)

(127,446)

Garbage Hauling & Tipping Fees

Total Operating Expenses
Operating Income (Loss)
Non-Operating Revenues (Expenses)
Investment Earnings

-

5,000

5,000

5,000

5,000

5,000

5,000

5,000

Penalties & Interest

85,000

60,000

60,000

75,000

60,000

60,000

60,000

60,000

Score Grant

150,000

134,000

134,000

136,400

136,400

136,400

136,400

136,400

Total Non-Operating

235,000

199,000

199,000

216,400

201,400

201,400

201,400

201,400

Income (Loss) Before Transfers

12,174

10,967

10,967

74,182

62,403

65,924

69,768

73,954

Transfers In

-

-

-

-

-

-

-

-

Transfers Out

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Other Financing Sources (Uses)

Total Other Financing Sources (Uses)

12,174

10,967

10,967

74,182

62,403

65,924

69,768

73,954

Beginning Net Position

1,414,291

1,441,418

1,441,418

1,547,972

1,622,154

1,684,557

1,750,481

1,820,249

Ending Net Position

1,426,465

1,452,385

1,452,385

1,622,154

1,684,557

1,750,481

1,820,249

1,894,203

Beginning Cash

665,944

689,279

679,713

690,680

764,862

827,265

893,189

962,957

Change in Cash

12,174

10,967

10,967

74,182

62,403

65,924

69,768

Net Change in Net Position

Cash Reconciliation

Ending Cash

$

678,118

$

700,246

$

690,680

$

764,862

$

827,265

$

893,189

$

962,957

73,954
$

1,036,911

Page 8 of 20

City of Blaine
Staff Report
File Number: 2026-213

Agenda Date

Status

November 16, 2026
In Control

File Type

City Council

Workshop Item

New Business - Jason Zimmerman, Finance Director
Agenda Item # 3.2
2027 Budget; Truth-in-Taxation Preview (30 Minutes)
Background
Budget Preparation
The budgetary process began with the staff budget team conducting small group discussions with all
members of the Council between March 31 and April 2 to provide measured assumptions that
incorporated operating, capital, and debt funding strategies as outlined in previous budgetary cycles
while maintaining existing staffing and service levels at anticipated 2027 costs. These conversations
culminated in a set of Council-driven considerations and themes for the 2027 budget and property tax
levy, which were reviewed and informally supported by the majority of the Council at the April 13
Workshop and are outlined below:
• Support for equitable staff compensation & professional development
• Levy increases to support the reduction of debt; not new spending
• Control costs through innovation & process improvement
• Reduce reliance on the property tax levy
• Leverage unrestricted reserves to fund nonrecurring items
• Prioritize core municipal functions & customer service
• Sustained investment in previously deferred infrastructure improvements
• Consider future budgets and levies beyond 2027
• Continue periodic review of budget to actuals
On April 27, City Manager Thorvig issued a memo to all budget contacts outlining the process,
expectations, and strategic vision for the upcoming fiscal cycle. Following prior Council guidance, staff
were directed to prioritize long-term investments in community-wide capital assets while minimizing
requests for new, ongoing operating expenditures. This organizational approach was intended to
ensure that early fiscal planning was focused on achieving outcomes that directly support Council
direction and provide for an efficient budget process. The 2027 departmental requested budget
Page 9 of 20

scenario was then made available, requiring leadership to route all submissions through their
respective department heads for approval by the May 15 deadline. Budget requests were evaluated,
discussed, and further adjusted to ensure compliance with the direction provided by City Council and to
maintain a consistent fiscal approach city-wide.
At the June 8 Workshop, staff presented a 2027 city budget that would require a $59,500,000 tax levy, a
$5,270,000 (9.7%) increase over 2026. In an effort to conform with the specific actions outlined below,
staff focused on reviewing historical spending and carefully checking all discretionary, or optional, costs.
Feedback from Council was to continue refining the budget while considering historical fiscal
performance and ensuring adequate resources to deliver city services at a responsible tax levy.
Significant assumptions and factors impacting the baseline department requested 2027 city-based
budget / property tax levy include:
• Development of a metrically driven budget process and spending targets
• Use of the Consumer Price Index (2.7%) for inflationary purposes
• Flat travel & training budget; review of out-of-state policy
• Two additional positions; elimination of one vacant position
• New funding for contracted services to enhance the uses of public amenities
• Additional resources for capital consistent with the CIP
• Strategic use of unrestricted reserves for 2026 capital equipment
• Bonding for 2026 pavement projects at current estimates
In response to feedback received at the June 8 Workshop, the City Manager pursued a multi-layered
approach to reduce the tax levy and its impact on property owners. These actions were intended to
secure sustainability in future budgets by ensuring that one-time funds were not used to supplant
ongoing operating costs, which would otherwise leave future budgets starting with unfunded deficits.
The resulting modifications were grounded in current economic conditions and cross-departmental
consideration of city initiatives, rather than simply carrying forward the prior year's budget, and were
guided by a line-item budget review conducted with each department between June 22 and July 6. This
review, along with several targeted adjustments, reduced the levy by approximately $430,000 in total.
Key changes included shifting the license plate reader program to the Public Safety Aid Fund, scaling the
planned staffing addition from two new employees to one police department position, reallocating
contracted mowing costs from the parks CIP to the operating budget, and general right sizing identified
through the line item review itself. Together, these changes produced a revised proposal presented at
the August 10 Workshop totaling $59,070,000, a $4,840,000 (8.9%) increase over 2026.
Following the August 10 work session, Council requested further analysis of the capital equipment
budget and additional levy reductions. Favorable insurance renewals, including a nearly 25% drop in
workers' compensation premium costs, combined with a negotiated reduction in the city's contribution
to SBM's capital equipment funding, which was coordinated to preserve SBM's 5-year capital plan,
yielded $827,000 of additional savings. Incorporating these actions, staff presented a further revised
budget at the September 9 Workshop requiring a $58,250,000 levy, a $4,020,000 (7.4%) increase over
2026.
In accordance with the state statutes, on September 21, the Council voted to support the City Manager's
recommendation and set the proposed city-based total tax levy at $58,250,000, which represents an
Page 10 of 20

increase of $4,020,000 or 7.4 percent over 2025 values. After that approval, the preliminary budget can
still be changed and the levy can be reduced, but not increased, prior to adopting the final budget and
levy in December. Best practice is to adopt a preliminary levy that provides adequate flexibility for the
council to react to changing economic conditions and needs of the community, while at the same time,
setting a realistic target that demonstrates the efforts put forward throughout the budget process.
City Levy History
2027
2027 City
Council
Manager
Approved
Recommended
Proposed
Levy
Levy
(August)
(September)

Levy Item

2022 Levy

2023 Levy

2024 Levy

2025 Levy

2026 Levy

2027
Department
Requested
Levy
(June)

Operating

$29,350,000

$31,712,000

$36,385,585

$39,547,598

$43,239,487

$46,221,184

$45,863,458

$45,298,818

Capital

$450,000

$600,000

$200,000

$1,769,752

$3,165,360

$3,940,360

$3,865,360

$3,610,000

Debt

$4,800,000

$4,800,000

$6,324,015

$8,018,650

$7,825,153

$9,338,456

$9,341,182

$9,341,182

$34,600,000

$37,112,000

$42,909,600

$49,336,000

$54,230,000

$59,500,000

$59,070,000

$58,250,000

Total

Proposed Property Tax Levy and Truth-in-Taxation
Upon certification by the County Auditor, the proposed levy will be used to prepare the Proposed
Property Tax Notice, also known as the Truth-in-Taxation (TNT) Notice. This notice is required to be
mailed to property owners between November 11 and November 24 of each year and includes parcelspecific estimated property taxes payable in the following year, should each taxing jurisdiction approve
their levies as proposed.
Notices are provided for real and personal property, but not manufactured home property taxed as
personal property. Manufactured home property taxed as personal property is not included since it is
assessed and taxed in the same year.
Consistent with regulations enacted during the 2023 Legislative session, the 2027 Proposed Property
Tax Notice is required to include a Supplemental Budget Information Form containing the overall
change in levy for the county, each city, and each school district in the county to be included on the
statement. These parcel-specific notices must also include the actual 2026 and proposed 2027 taxes for
the county, city, school district, Metropolitan Special Taxing Districts, and other special taxing districts.
Following the adoption of the preliminary levy, cities with a population over 500, counties, school
districts, the Metropolitan Council, the Metropolitan Airports Commission, the Metropolitan Mosquito
Control District, and any applicable regional library authority are required to conduct a public meeting
between November 25 and December 30 to discuss the property tax levy and allow for public comment.
The budget calendar calls for the city to conduct the Truth-in-Taxation (TNT) meeting on December 7,
2026, and adopt the final tax levy at the December 21, 2026, City Council meeting. Holding the TNT
meeting on a separate night from the final tax levy adoption ensures public engagement and
transparency, as this two-step process provides a crucial opportunity for residents to voice their
concerns and for the City Council to consider that feedback before making a final decision.
Property Values
Page 11 of 20

Property values in the city are determined by the County Assessor's Office (Anoka and Ramsey). Overall,
in total, property values in Blaine are increasing 3.62 percent, with 0.96 percent coming from new
construction and an increase of 2.66 percent coming from appreciation of existing properties. Property
classification increases include apartments and commercial/industrial, which are up 4.12 percent and
8.06 percent, respectively. The strength of these property types will help reduce the overall tax burden
on residential properties, highlighting the importance of a diversified market base. Also of note, the
agricultural property class is showing a reduction of 5.85 percent as individual landowners continue to
exercise their property rights within zoning and land use guidelines. While these values are not final and
fluctuate throughout the year, they serve as a good indicator of trend data.
Assessed Market Value Trends
Property Type
Residential

’25 p ’26 Total
Value

’26 p ’27 Total New
Construction

’26 p ’27 Total
Appreciation

’26 p ’27 Total
Value

’26 to ’27 %
Chg

$9,246,338,600

$77,162,800

$172,533,700

$9,496,035,100

2.70%

Personal Property

$138,608,700

$30,200

$6,801,100

$145,440,000

4.93%

Agricultural

$15,501,600

-

($906,300)

$14,595,300

(5.85)%

Apartments

$587,529,400

$3,651,600

$20,556,700

$611,737,700

4.12%

$1,844,366,900

$32,210,400

$116,359,700

$1,992,937,000

8.06%

$11,832,345,200

$113,055,000

$315,344,900

$12,260,745,100

3.62%

Commercial/Industrial
Total

Overall, the city remains highly desirable, driving the above-average appreciation of existing property
and significant investment by developers. By maintaining a well-balanced mix of property types, the city
is well positioned to manage the changing landscape of consumer preferences and market fluctuations.
Property Taxes on the Median Valued Residential Property
At the above levy amounts, the median valued residential property in Blaine is $354,000, which is an
increase of 2.31 percent in value. Median valued properties will see their estimate of the city’s share of
their annual property tax bill increase by $70.45 or 5.28 percent. This equates to a monthly increase of
$5.87. The following table provides a breakdown of the taxes on each of the levy components, assisting
users in understanding the tax impacts on the median valued home.
Purpose

2026

Proposed 2027

Difference

% Change

Public Safety

$559.35

$580.43

$21.08

3.77%

Public Works & Recreation

$299.02

$303.56

$4.54

1.52%

General Operations

$206.91

$209.41

$2.50

1.21%

Debt

$192.23

$224.86

$32.63

16.97%

Capital (PMP, Parks, SBM, Equipment)

$77.43

$87.13

$9.70

12.53%

$1,334.94

$1,405.39

$70.45

5.28%

Total

Staff believe the levy as presented accomplishes a number of important objectives:
• Focusing on essential city services
Page 12 of 20

• Reducing the reliance of debt to finance capital projects
• Maintaining a high quality city-operated Police Department
• Investing in modern technology to improve services and increase productivity
• Continuing to fund annual street reconstruction/maintenance projects
• Enhancing city parks, trails, open spaces, and facilities
• Fostering an efficient and transparent government
• Promoting citizen engagement
• Embracing innovative ways to improve customer service
Remaining Budget Schedule:
January 26
Council Retreat
February 18
Budget Calendar Review & City Manager Guidance
March 23 - April 2
Small Group Meetings with Mayor and Councilmembers
April 13
Budget Review Post-Small Group Meetings – General Council Direction
June 8
General Fund and City Tax Levy
July 13
Capital Funds
August 10
Review General Fund and EDA Levy
Septmeber 9
Reserved for Budget Review if needed (Preliminary Levy)
September 14
Internal Service Funds
September 21
Adopt Proposed General Fund, EDA, Capital Budgets, and City Tax Levy
October 5
Charitable Gambling and Communications Funds
October 19
Utilities Funds
November 2
Review Charitable Gambling Fund Scoring
November 16
Refuse Fund
November 16
Truth-in-Taxation Preparation and Budget Review
December 7
Truth-in-Taxation Public Meeting
December 21
Adopt Final General Fund, EDA, Capital Budgets, and Tax Levies

Staff Recommendation

Questions for Council
Does the Council have any comments regarding the information presented? This is intended to be the
final work session regarding the 2027 tax levy in advance of the truth-in-taxation meeting on December
7.
Attachment List
1.
2.
3.

2027 Truth-in-Taxation Sample Notice
2027 Levy Exhibits
2027 General Fund Summary
Page 13 of 20

Page 14 of 20

Spruce County

Jane Smith, Auditor-Treasurer
345 12th Street East, Box 78
Spruceville, MN 55555-5555
(555) 345-6789
www.co.spruce.mn.us

TAXPAYER(S):
John and Mary Johnson
123 Pine Rd S
Spruceville, MN 55555-5555

PROPOSED TAXES 2027
THIS IS NOT A BILL. DO NOT PAY.
Step

1

VALUES AND CLASSIFICATION
Taxes Payable Year

Estimated Market Value
Homestead Exclusion
Taxable Market Value
Class

2026

2027

$125,000
$
$125,000
Res NHmstd

$150,000
$33,0500
$116,950
Res Hmstd

PROPOSED TAX

Step

2

Property Information
PIN Number:
Property Address:
01.234.56.789.R1
789 Pine Rd S
Spruceville, MN 55555
Property Description:
Lot 1, Block 1, Spruce Acres Subdivision

Property taxes before credits
School building bond credit
Agricultural market value credit
Other credits
Property taxes after credits

Step

3

$1,562.46
$ 12.00
________
$1,550.46

PROPERTY TAX STATEMENT
Coming in 2027

The time to provide feedback on
PROPOSED LEVIES is NOW

It is too late to appeal your value without going to Tax Court.

Proposed Property Taxes and Meetings by Jurisdiction for Your Property
Contact Information

Meeting Information

State General Property Tax

No public meeting

County of Spruce
Spruce County Courthouse
123 Spruce St
Spruceville, MN 55555
www.co.spruce.mn.us
(555) 123-4567

Actual 2026

Proposed 2027

$0

$0

December 4, 7:00 PM

$438.06

$484.18

City of Spruceville
Mayor’s Office
456 Spruce St
Spruceville, MN 55555
www.ci.spruceville.mn.us
(555) 123-7654

December 2, 6:30 PM
Spruceville City Hall

$273.79

$312.06

Spruceville School District 999
150 1st St N
Spruceville, MN 55555
www.spruceville.k12.mn.us
(555) 123-6789
Voter Approved Levies
Other Levies

December 9, 7:00 PM
Spruceville High School Cafeteria

$289.35
$340.11

$296.68
$374.60

Your school district was scheduled to hold a referendum at the November general election. If the referendum was approved by the voters, the school
district’s voter approved property tax for 2027 may be higher than the proposed amount shown on this notice.
Metro Special Taxing Districts
Spruceville Metropolitan Council
www.spruce.metrocouncil.org
(555) 555-5555
Spruceville, MN 55055

December 11, 7:30 PM
Spruce Park Centre
500 Pine St.

Other Special Taxing Districts
Tax Increment Tax

No public meeting
No public meeting

Total excluding any special assessments

$57.76

$58.70

$12.80
$10.15

$13.02
$11.22

$1,422.02

$1,550.46

9.0%

Page 15 of 20

Your local units of government have proposed the amounts they will need to levy in
2027.

What Else
Should You
Know?

The following circumstances could change these amounts:
• Upcoming referenda
• Legal judgments
• Natural disasters
• Voter-approved levy limit increases, or
• Special assessments
Your county commissioners, school board, city council (if your property is located in a
city with a population over 500), and metropolitan special taxing district will soon be
holding meetings to discuss the 2027 budgets and proposed 2027 property taxes. (The
school board will discuss the 2026 budget.) You are invited to attend these meetings to
express your opinion.

Supplemental Budget Information - Proposed 2027 Taxes
How Can You Learn More?
The time to provide feedback
on proposed levies is now.
You are invited to attend budget
meetings to express your opinion.
Levy information is provided by the
county, city, and school district. It
compares two years for those
jurisdictions. For more information,
contact the county, city, or school
district directly or visit their websites.
Levy amounts impact the taxes owed
for your property. Additional factors
that may impact your property tax
amount include changes to taxable
market value, improvements made
to the property, and changes in
special programs, such as the
homestead market value exclusion.

Levy Information
Taxing Authority
Spruce County
City of Daffodil
City of Dahlia
City of Daisy
City of Emerald
City of Holly
City of Juniper
City of Laurel
City of Olive
City of Opal
City of Spruceville
City of Tulip
City of Violet
Daisy School District
Holly School District
Laurel School District
Opal School District
Spruceville School District

2026
2027
Actual
Proposed
$338,743,612 $354,123,588
$11,481,450 $12,615,350
$5,820,296
$6,553,071
$25,308,114 $26,927,389
$2,360,444
$2,474,298
$950,351
$1,010,172
$4,479,291
$4,785,770
$3,761,410
$4,244,790
$2,051,403
$2,215,515
$24,369,853 $25,963,885
$14,076,707 $15,051,898
$5,724,529
$6,461,264
$5,793,870
$6,195,499
$30,350,240 $27,440,145
$38,291,058 $40,749,495
$24,171,980 $25,211,575
$37,366,073 $40,320,531
$132,473,350 $133,792,608

Percent
Change
4.5%
9.9%
12.6%
6.4%
4.8%
6.3%
6.8%
12.9%
8.0%
6.5%
6.9%
12.9%
6.9%
-9.6%
6.4%
4.3%
7.9%
0.8%

Page 16 of 20

City of Blaine, Minnesota
Exhibit A - 1
2027 Property Tax Levy - Detail - Nov 16, 2026 Workshop
Levy
Item

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

18
19
20
21

22

Fund

2027 TNT
Preview
(November)

2026 Final Levy

General Fund
Personnel (Union & Nonunion Step Progression)
Cafeteria Plan (Benefit) Increase
Self-Insurance
Workers Compensation
Compensated Absences
Facilities Fund Internal Service Charges
Commodities/Services
Contractual Commitments Above CPI
Anoka County Flock/LPR Consortium
SBM Fire Funding (Operating)
2026 Election Year
Reduce Engineering Charges for City Projects
Misc. Revenue Increase
Additional Safe Margin
Additional Position(s)
Additional Mowing Services
Modify Asst. Comm Dev Director Position
Total General Fund

$

43,239,487
1,685,706
319,440
38,000
(556,247)
50,000
125,000
274,654
184,008
(92,868)
200,000
(291,773)
50,000
163,872
75,000
(165,461)
45,298,818

2,059,331

4.8%

Total Capital

650,000
1,000,000
500,000
1,015,360
3,165,360

800,000
1,600,000
450,000
760,000
3,610,000

444,640

14.0%

Debt Service
GO Improvement Bonds 2016A (71a)
GO Improvement Bonds 2016A (71b)
GO Improvement Bonds 2016A (71d)
GO Taxable Improvement Bonds 2017A (72a)
GO Improvement Bonds 2019A (75)
GO Capital Improvement Plan Bonds 2019B (76)
GO Capital Improvement Plan Bonds 2020A (77)
GO Improvement Bonds 2021A (78A)
GO Improvement Bonds 2021A (78B)
GO Improvement Bonds 2022A (79A)
GO Improvement Bonds 2023A (80A)
GO Equipment Certificates 2023A (80C)
105th Ave Tax Abatement Turf Fields 2024A (81)
GO Improvement Bonds 2024B (82A)
GO Equipment Certificates 2024B (82B)
City Improvement Bonds 2025A
City Improvement Bonds 2026
City Equipment Bonds 2026
105th Avenue Tax Abatement Infrastructure 2026
Debt Service Total

17,068
163,251
723,870
253,888
556,306
487,725
513,115
466,096
112,248
675,884
713,129
692,475
603,435
806,813
689,850
350,000
7,825,153

717,570
250,248
555,865
487,463
510,498
465,473
113,928
675,918
714,749
688,800
878,535
807,294
693,000
256,841
675,000
850,000
9,341,182

1,516,029

19.4%

58,250,000

4,020,000

7.4%

Capital
Pavement Management Plan
Capital Equipment
Parks & Trails
SBM Capital Equipment

Total Levy

$

43,239,487
43,239,487

54,230,000

$

Percent
Total Change
Change From
From '26 to
'26 to '27
'27 Levy
Levy

$

Page 17 of 20

City of Blaine, Minnesota
Exhibit A - 2
2027 Property Tax Levy - Detail - Nov 16, 2026 Workshop
Total Change From
Levy Item

Fund/Category

Detail

'26 to '27 Proposed
Levy (TNT Preview)

Base/existing employment base
1

Personnel (Union & Nonunion Step Progression)

Includes position reclassifications or adjustments through 10/15/2026

$

1,685,706

Assuming union group compensation per final contract settlements
Union Employee Cafeteria Plan: $1,640 per month for union employees who elect the cafeteria plan
2

Benefit Plan Increase

Employee Health Insurance: $1,054.50 to $1,919.75 per month for full-time employees
Additional Monthly Costs: $13.20 for LTD, $6.30 for Basic Life/AD&D, and $48.45 for Dental

319,440

Coverage Waiver: Full-time employees who waive coverage receive $428.50 per month
2026 funding $1.25MM, 2026/2027 Standard Premium $623k; Excess Liability $193k
$100k deductible per occurrence/$200k standard aggregate/$4M MEL aggregate; Plan Year July-June
Ending 2025; $1.5MM of expenses and $1.2MM of revenue
3

Self Insurance

Ending 2025: Net Position $90k, incurred but not reported $380k

38,000

No current/proposed funding for new vehicle/equipment replacement (residual vs new)
Land-use litigation costs are based on a sliding scale, includes a 15% copay on the first $250k and 40% on
amounts above that
Increase spread amongst funds, 75% General Fund
2026 funding $2.1MM, 2026/2027 Premium $919K
2026/2027 Standard policy, $10k Deductible per occurrence; plan year July-June
2025 Retro-Premium refund of $493k; 2026 Retro-Premium charge of $66k (spring/annually)
4

Workers Compensation

2025 Audit Adjustment refund of $40k (fall/annually)

(556,247)

Ending 2025: Net Position $1.1M
Premium reduction driven by lower projected loss rates, higher assumed investment income, and a reduced
contingency margin
2021-2025: Funding $789k; Payouts $2.6MM; Total shortfall $1.8M
5

Compensated Absences

2025: Funding $161k; Payouts $408k; Shortfall $247k
Ending 2025: Cash $1.04M

50,000

Increase spread amongst funds, 93% General Fund
6

Facilities Fund Internal Service Charges

Assumes 8.5% increase year over year per 5-year fund summary and CIP
Increase spread amongst funds, 76% General Fund

125,000

Assumes rate of increase with overall Consumer Price Index change for 2025 of 2.7%
Total 2026 Expenditure Budget for General Fund = $53,417,887
7

Commodities/Services

Excludes: T&T = $312,725; SBM = $2,911,335; Facilities = $1,466,770; Personnel = $37,798,450

274,654

Remaining Budget to apply CPI: $10,983,303
Historical increases: 25% for 2022 Actuals; 11% for 2023; 2% for 2024; 7% for 2025
Various costs the city incurs are subject to discretion and contractual commitments
8

Contractual Commitments Above CPI

Assumes some level of cost increase beyond consumer price index

-

Departments were able to remain within the CPI increase; planned for extra 1% or $110k
On December 18, 2023 Council approved a three year agreement with Flock Safety
9

Anoka County Flock/LPR Consortium

Current contract for cameras/LRP is paid for from Public Safety Aid Funds $100k annually

-

County contract anticipated to start in 2027; city share to remain in Public Safety Aid one more year
Ongoing operating funding: 2024 up 3.5%; 2025 up 10.0%; 2026 up 5.1%
10

SBM Fire Funding (Operating)

2027 SBM proposed budget; city share $3.1M up 5.83%

184,008

Blaine 76%; Mounds View 15.5%; Mounds View 8.5%

Page 18 of 20

City of Blaine, Minnesota
Exhibit A - 2
2027 Property Tax Levy - Detail - Nov 16, 2026 Workshop
Total Change From
Levy Item

Fund/Category

Detail

'26 to '27 Proposed
Levy (TNT Preview)

11

Elections

2027 is not a scheduled election year

(92,868)

Special elections to be funded with unrestricted fund balance
Engineering staff track their time spent on city projects then charge this time back to the associated project
account (capital project or utility fund)

12

Engineering Fees

Most of the this time/cost is allocated to activities funded through debt

200,000

The current revenue budget for this activity in the General Fund is $250k, 2027 is the final year of a 3-year
timeline to eliminate this chargeback; $50k to remain in budget for costs incurred by developers
Administration fees charged to the EDA Fund for services provided by city employees, $467k per year
Administration fees charged to the Enterprise Funds for services provided by city employees, $2.5MM per year
13

Revenue Increases

(291,773)

Vehicle & equipment maintenance fees charged to the Water and Sewer Funds, $433k per year
Police State Aid budgeted $1.0M in 2027
Municipal State Aid Maintenance budgeted $1.0M in 2027

14

Additional Safe Margin

15

Additional Positions

City safe margin to be established in an amount between 1% and 1.5%, the adjustment brings the 2027 safe

50,000

margin to $490k

163,872

Reflects the estimated cost to add one Police Detective; early planning anticipated an two additional hires
In 2025 the work crew which performed basic landscaping services discontinued

16

Mowing Services

Impacts to the overall aesthetics of city parks and open space

75,000

In lieu of additional staff, funding established to pursue additional contracted mowing services
Funded through a reduction in the parks capital improvement plan levy

17

Modify Asst. Comm Dev Director Position

18

Pavement Management Plan

(165,461)

Remove full-time position; reclassify into internship role
Crack-sealing program funding $265k; city-wide 7 year program

150,000

Additional funding to buy-down future bonding requirements
Pavement Condition Index (PCI) Study budgeted for in 2026; use of unrestricted GF reserves
2026-2030 CIP increased funding from $1.0M to $1.6M

19

Capital Equipment

600,000

Goal is to be pre-funded by 2029
Lack of prefunding capital needs may impact credit rating

20

Parks & Trails

Reduced capital levy to accommodate contracted mowing services in parks

(50,000)

Increased funding from $569,752 in 2025 to $1,015,360 in 2026 and $760,000 in 2027
21

SBM Capital Equipment

Capital funding was born out of reallocating retired debt service related to the fire department

(255,360)

No additional capital funding planned for until future fire station financing is determined
Blaine Share 76%; Mounds View 15.5%; Mounds View 8.5%
Main funding source for capital projects
Assumes 25% of all improvements will be assessed for the 2026 transportation projects

22

Debt Service

Use of unrestricted General Fund reserves to purchase capital equipment

1,516,029

2026 pavement project related bond levy at $675k annually for 15 years
Permanent Financing of 2024D 105th Tax Abatement Bond at $850k annually for 20 years
Assumes current interest rate environment and no contingency buffer
Total 2027 CMR Property Tax Levy Increase

$

4,020,000

Page 19 of 20

City of Blaine, Minnesota
General Fund - 101
Summary of Revenues, Expenditures, and Change in Fund Balance (Unaudited)
2027 Proposed Budget - As of November 5, 2026

2023 Actual
Revenues
Taxes
Special Assessments
Licenses & Permits

$

2024 Actual

31,233,575
799
2,952,707

$

2025 Actual

36,252,629
3,045,226

$

38,813,505
2,481,978

$

2026 Adopted

2026 Amended

2027 Proposed

2026 vs 2027

Budget

Budget

Budget

Budget Change

43,239,487
2,348,700

$

43,239,487
2,373,700

$

45,298,818
2,304,450

$

2,059,331
(44,250)

Intergovernmental

2,079,673

2,500,893

3,022,169

2,308,000

2,615,769

2,538,173

230,173

Charges for Services

5,348,447

5,321,971

4,945,902

5,269,300

4,850,300

5,288,450

19,150

Fines & Forfeits

263,017

299,602

307,547

220,000

220,000

220,000

-

Investment Earnings

566,600

951,279

1,479,630

230,000

630,000

230,000

-

Miscellaneous

75,920

127,329

196,506

120,000

120,000

6,700

(113,300)

42,520,738

48,498,929

51,247,237

53,735,487

54,049,256

55,886,591

2,151,104

Total Revenues
Expenditures
Legislative
Administrative Services

460,109

463,329

556,250

541,921

598,921

639,977

98,056

2,642,225

2,924,481

2,730,939

3,294,364

3,308,444

3,178,651

(115,713)

Finance

3,207,501

3,199,059

3,514,717

4,614,247

4,547,022

4,757,242

142,995

Safety Services

17,369,766

18,872,206

19,977,746

23,085,914

23,092,784

24,113,564

1,027,650

Fire Services

2,361,784

2,490,793

2,724,708

2,911,335

2,911,336

3,095,343

184,008

Public Works

7,863,921

8,092,330

8,465,408

10,326,719

10,501,765

10,671,317

344,598

Engineering

1,884,954

1,999,846

2,147,896

2,379,975

2,404,975

2,475,100

95,125

Recreation

1,560,596

1,683,678

1,799,601

1,904,822

1,904,822

2,059,317

154,495

Community Development

2,657,734

2,750,179

2,661,361

3,210,532

3,297,531

3,266,342

55,810

436,319

627,889

939,451

1,148,058

1,158,058

1,262,138

114,080

Total Expenditures

40,444,909

43,103,790

45,518,077

53,417,887

53,725,658

55,518,991

2,101,104

Revenues Over (Under) Expenditures

2,075,829

5,395,139

5,729,160

317,600

323,598

367,600

50,000

-

Unallocated

Other Financing Sources (Uses)
Transfers In

112,807

37,500

-

122,400

122,400

122,400

Transfers Out

(1,500,000)

(362,895)

(2,915,696)

-

(2,000)

-

-

(1,387,193)

(325,395)

(2,915,696)

122,400

120,400

122,400

50,000

Total Other Financing Sources (Uses)
Net Change in Fund Balance

688,636

5,069,744

2,813,464

440,000

443,998

490,000

Beginning Fund Balance

16,352,276

17,040,912

22,110,656

22,510,656

24,924,120

26,062,120

Ending Fund Balance

17,040,912

22,110,656

24,924,120

22,950,656

25,368,118

26,552,120

Adjust for Inventory

280,492

360,270

339,640

Adjust for Prepaid Items

57,236

74,893

345,660

-

-

-

25,134

-

16,703,184

21,675,493

24,213,686

26,552,120

30% Subsequent Years Budget

13,972,460

14,904,629

16,025,366

17,460,000

5% Subsequent Years Property Tax Levy

1,819,279

1,977,380

2,161,974

2,437,500

State Funding Un-Allotment

670,000

820,000

820,000

1,190,000

Minimum Unassigned Fund Balance

16,461,739

17,702,009

19,007,340

21,087,500

Budget Roll Forward Assignment
Adj Fund Balance, Dec 31 (Net of Restricted)

Unrestricted Fund Balance

$

241,445

$

3,973,484

$

5,206,346

-

$

5,464,620

Page 20 of 20