On the agenda: Blaine City Council Workshop Meeting — license plate reader (Aug 10)

City of Blaine
City Council Workshop
August 10, 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.

2026-156

Cooperative Purchase of Manufactured Home Park (15 Minutes)
Sponsors: Sheila Sellman, Community Development Director

3.2.

2026-157

Conditional Use Permit (CUP) Discussion II (30 Minutes)
Sponsors: Sheila Sellman, Community Development Director

3.3.

2026-158

2027 Budget - City & EDA Property Tax Levy (60 Minutes)
Sponsors: Jason Zimmerman, Finance Director

4.

Other Business

5.

Adjournment

Page 1 of 16

City of Blaine
Staff Report
File Number: 2026-156

Agenda Date

Status

August 10, 2026
In Control

File Type

City Council

Workshop Item

New Business - Elizabeth Showalter, Housing Program Coordinator
Agenda Item # 3.1
Cooperative Purchase of Manufactured Home Park (15 Minutes)
Background
Staff have been notified that a manufactured home park in Blaine is expected to be sold and there may
be a potential for residents to establish a cooperative to purchase the park, preserving it as affordable
housing. Resident purchase will not be possible without financial contribution from the City and other
public agencies.
Staff will provide more information on the expected sale and potential assistance at the workshop. If
the City Council supports financial assistance, staff will analyze the sources and structures for the
assistance, and seek additional feedback at a future meeting.
Staff Recommendation

Questions for Council
Do you support financial assistance to assist a resident cooperative purchasing a manufactured home
park at risk of sale?
Attachment List
None

Page 2 of 16

City of Blaine
Staff Report
File Number: 2026-157

Agenda Date

Status

August 10, 2026
In Control

File Type

City Council

Workshop Item

New Business - Sheila Sellman, Community Development Director
Agenda Item # 3.2
Conditional Use Permit (CUP) Discussion II (30 Minutes)
Background
Conditional Use Permits (CUPs) are a common zoning application considered by the Planning
Commission and City Council. When either approving or denying a conditional use permit, the City
Council must make specific findings based on language in the zoning code. In the past several years,
staff have recognized ambiguity in the existing code language and would like to discuss with council
whether the language should be more direct.
State Statute 462.3595 permits certain land uses as conditional uses under zoning regulations. To
approve a CUP, the proposed use must meet the standards and criteria outlined in the local ordinance.
Conditions may be attached to the CUP to address and mitigate potential concerns related to the
proposed use or location. Section 101-4 of the Blaine Zoning code outlines the criteria, process and
revocation of CUPs. Though Minnesota Statutes authorize the ability for cities to address CUPs, cities
are allowed the ability to set their own criteria for considering CUP requests.
Section 101-4 (a) lists the findings to approve a CUP as follows:
(1) The use shall not create an excessive burden on existing parks, schools, streets and other public
facilities and utilities which serve or are proposed to serve the area.
(2) The use will be located, designed, maintained, and operated to be compatible with adjoining
properties and the existing or intended character of the zoning district.
(3) The use shall have an appearance that will not have an adverse effect upon adjacent properties.
(4) The use, in the opinion of the City Council, shall be reasonably related to the overall needs of the
City and to the existing land use.
(5) The use shall be consistent with the purposes of the zoning code and purposes of the zoning district
in which the applicant intends to locate the proposed use.
(6) The use shall not be in conflict with the comprehensive plan of the City.
(7) The use will not cause traffic hazard or congestion.
(8) The use shall have adequate utilities, access roads, drainage and necessary facilities.
Page 3 of 16

As mentioned, state statue does not provide the findings required in order to approve/deny a CUP.
Each city adopts these findings through their zoning code. Staff proposes to revise the findings to
enhance clarity and reduce subjectivity, making it easier to determine whether the use complies with
the criteria. The proposed changes are below. Underlined is new language.
(1) Public infrastructure and services. The use shall not create an excessive burden on Existing parks,
schools, streets, and other public facilities and utilities which serve or are proposed to serve the area
shall be able to absorb any additional demand created by the use.
(2) Compatibility. The use will be located, designed, maintained, and operated to be compatible with
adjoining properties. and the existing or intended character of the zoning district.
(3)The use shall have an appearance that will not have an adverse effect upon adjacent properties.
(3)(4) Health and safety. The proposed use shall not negatively impact the health, safety and general
public welfare The use, in the opinion of the City Council, shall be reasonably related to the overall
needs of the City and to the existing land use.
(4)(5) Zoning. The use shall be consistent with the purposes of the zoning code and purposes of the
zoning district in which the applicant intends to locate the proposed use.
(5)(6) Consistency with the comprehensive plan. The use shall not be in conflict with the comprehensive
plan of the City.
(6)(7) Traffic. The use will not cause traffic hazard or congestion. The generation and characteristics of
the traffic associated with the use and its impact on traffic volumes and safety associated with driveway
locations, existing and proposed capacity on adjacent roads, sidewalks and trail connections can be
adequately mitigated.
(8) The use shall have adequate utilities, access roads, drainage and necessary facilities.
Staff Recommendation
Staff requests council to provide feedback on the proposed changes.
Questions for Council
1. Does the City Council agree with the proposed changes to the findings?

Attachment List
None

Page 4 of 16

City of Blaine
Staff Report
File Number: 2026-158

Agenda Date

Status

August 10, 2026
In Control

File Type

City Council

Workshop Item

New Business - Jason Zimmerman, Finance Director
Agenda Item # 3.3
2027 Budget - City & EDA Property Tax Levy (60 Minutes)
Background
In accordance with the city's budget schedule, the August 10 Workshop was set aside for a presentation
and discussion on the City Managers' recommended 2027 budget and property tax levy. With the
feedback received during prior public meetings, the current proposal was developed with the intent of
aligning City Council priorities with available financial resources to provide Blaine property owners,
residents, and visitors with quality municipal services at a responsible tax level. Based on established
guidance, staff have prioritized investments in capital assets that provide a broad benefit across the
community, while minimizing additional ongoing operating requests.
Because this document is being prepared in late July, many assumptions continue to be made based on
trends in prior years' financial performance. Several factors may impact the final budget, including
legislative changes, state mandates, economic shifts, and union negotiations. County-generated
estimated market values for taxes payable in 2027 have yet to be provided, so at this time staff are
unable to prepare an estimated tax capacity rate or impact scenario on the median valued single-family
home. Additionally, metro-wide fiscal disparity information isn’t anticipated until sometime in late
August, which staff also need to calculate an accurate estimate of tax rate/impact.
Budget Preparation
The budgetary process began with 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:

Page 5 of 16

• 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 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 revised 2027 city budget that would require a $59,500,000 tax levy, which
represented a $5,270,000 or 9.7% increase from 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 citybased 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
City Manager Recommended Budget and Tax Levy
While the responsibility of adopting the budget is that of the City Council, Blaine Charter Sec 7.05
specifies: "The city manager shall prepare the estimates for the annual budget of the general fund.
Estimates may be prepared for other funds as deemed necessary by the city manager or the city
council. The city manager shall submit with the estimate such explanatory statements as such manager
may deem necessary". Providing the City Council, staff, and the public with a budget which provides the
financial blueprint to carry out the city's strategic plan while outlining the true cost of delivering
Page 6 of 16

municipal services is one of the core duties the city manager is expected to perform annually. Effectively
managing the budgetary process is paramount for transparency, accountability, and successful financial
governance.
In response to the feedback received at the June 8 Workshop, the city manager requested a multi-layer
approach to reduce the tax levy and impacts on property owners. The actions taken were done in an
effort to secure sustainability in future budgets, ensuring that one-time funds were not used to
supplant ongoing operating costs which would result in future budgets starting with unfunded deficits.
Additionally, the modifications within this revised proposal were done based on the current economic
conditions, with cross-departmental consideration for city initiatives, and not simply relying on the prior
year's budget, also known as zero-based budgeting. Zero-Based Budgeting (ZBB) offers a rigorous,
bottom-up financial methodology designed to enhance resource allocation and fiscal accountability.
Unlike traditional incremental budgeting, which adjusts prior-year figures by a standard baseline, ZBB
requires departments to justify all expenditures from the ground up for each fiscal cycle. By treating
every line item as starting at zero, this approach eliminates routine complacency, replacing historical
precedent with a mandatory evaluation of current operational necessity.
The following adjustments have been made to the June 8 proposal in the development of the City
Managers' current proposed budget/tax levy.
1. Line Item Budget Review: In a similar effort to the work that was completed for the 2026 budget,
the City Manager conducted detailed budget meetings between June 22 and July 6 with each
department, along with finance staff to review budget requests while comparing these inputs to
historical results and the current 2026 budget as amended. This process identified opportunities
to right-size budgets and further enhance the itemization and justification for each budget
request, helping ensure service continuity and accountability. This represents a reduction from
the 2.7% planned increase considered in previous levy proposals. Levy reduction = $135,162.
2. Alternative Funding: While initially considered to be paid for out of the General Fund budget
after the initial 3-year term expired, the revised budget proposal continues to fund the annual
license plate reader program through the Public Safety Aid Fund. Levy reduction = $100,000.
3. Staffing Adjustment: In the early planning stages, funding was outlined for the addition of two
new full-time employees. Based on detailed discussions with individual departments and overall
organizational consideration, the revised proposal has been modified to include only one new
staff member within the police department. Levy reduction = $136,128.
4. Contracted Mowing: Staff had proposed an additional $85,000 for contracted mowing to restore
service levels to select parks and reduce the volume of current no-mow areas within the city.
Given the current condition of the parks capital improvement plan (CIP), $75,000 is
recommended to be reallocated from the CIP and to the parks operating budget for these
mowing services. Levy reduction = $85,000
The city managers' recommended budget includes a $59,070,000 tax levy, which represents an increase of
$4,840,000 or 8.9% as outlined in the table below. This figure is $430,000 less than what was included in the
June presentation, resulting in nearly a 1% reduction in the rate of levy increase.

Page 7 of 16

City Levy History

2022 Levy

2023 Levy

2024 Levy

2025 Levy

2026 Levy

2027
Department
Requested
Levy
(June)

$29,350,000

$31,712,000

$36,385,585

$39,547,598

$43,239,487

$46,221,184

$45,863,458

Capital

$450,000

$600,000

$200,000

$1,769,752

$3,165,360

$3,940,360

$3,865,360

Debt

$4,800,000

$4,800,000

$6,324,015

$8,018,650

$7,825,153

$9,338,456

$9,341,182

$34,600,000

$37,112,000

$42,909,600

$49,336,000

$54,230,000

$59,500,000

$59,070,000

Levy Item
Operating

Total

2027 City
Manager
Recommended
Levy
(August)

Within the City Managers' recommended budget and property tax levy is the recommendation to utilize
unrestricted reserves that are in excess of the city's fund balance policy, which were through the city's
long-standing tradition of budgetary performance over several years. Audited financial statements
indicate approximately $5.2 million of unrestricted funds are available, which represents the fund
balance in excess of the following policy requirements:
• 25% or more of the succeeding year’s budgeted expenditures to fund cash flow needs
• 5% of the current year’s gross property tax levy as a safeguard for property tax delinquencies
• An amount equal to State funding commitments that are not constitutionally guaranteed by the
State
The adopted 2026 budget called for approximately $3.3 million of general capital equipment, with $2.3
million to be funded through equipment certificates, which is a form of debt. Consistent with the June 8
budget proposal, the City Manager is recommending utilizing unrestricted General Fund reserves to pay
for these purchases in lieu of bonding. This recommendation is being made based on prior Council
direction to reduce borrowing when possible and the use of these funds doesn't create additional
spending, as these commitments were previously authorized. The appropriation of reserves for capital
equipment would leave approximately $2.9 million of unrestricted funds available for other Councilapproved uses. Maintaining an amount in excess of policy also demonstrates fiscal strength to financial
statement users and serves as a crucial tool for managing risk. Depleting these funds could expose the
city in the short term, as the Strategic Priorities Fund, which was established in part to navigate
economic volatility, has no further fiscal capacity beyond the City's purchase agreement assignment
and cost share for the proposed development at Lexington Crossings.
Economic Development Authority Levy
Acting as a separate taxing authority, the Economic Development Authority (EDA) is focused on
achieving three key outcomes: economic growth, the creation of high-quality job opportunities, and the
expansion of the commercial tax base. These efforts are essential for cultivating a vibrant business
climate and enhancing the overall quality of life for all residents. Operating under Minnesota Statutes
469.033, the EDA is authorized to levy taxes to fund its operations and strategic initiatives. This special
taxing district status empowers the city to make long-term investments in redevelopment and
infrastructure.

Page 8 of 16

Blaine created its Housing and Redevelopment Authority (HRA) in May 1985 to address the city’s
housing and redevelopment needs. As a separate legal entity, the HRA led projects aimed at removing
blight, such as deteriorated, vacant, or neglected properties, remediating environmental contamination
and supporting new housing development to strengthen the community and increase the city’s tax
base. In December 1988, the city established the Economic Development Authority (EDA) to succeed the
HRA as the primary tool for ongoing economic development. While HRAs and EDAs differ mainly in their
statutory purposes, an EDA provides broader operational flexibility and can support a wider range of
redevelopment activities, including commercial, industrial, and mixed-use projects.
Pursuant to Minnesota Statutes, an Economic Development Authority (EDA) exercising the powers of a
Housing and Redevelopment Authority (HRA) is authorized to impose a special benefit tax levy. The
maximum capacity for this levy is restricted to 0.0185% of the total taxable estimated market value of
the city. Revenue generated through the exercise of these specific HRA powers is formally excluded
from the municipality's general levy limit calculations. For taxes payable in 2026, the final estimated
market value for Blaine provided by Anoka County was $11,778,461,700, which would allow for the EDA
to levy up to $2,179,015 for the 2027 tax year.
The EDA tax levy was increased from $750,000 to $1,000,000 in 2023 to provide funding for capitalrelated projects including land acquisition, development assistance, and supporting redevelopment
activities. While the baseline 2025 EDA operating budget aligned closely with prior years, the Board
authorized a property tax levy of $1,150,000 with the full $150,000 increase dedicated to future targeted
development/redevelopment initiatives, and authorized staff to place these funds in a separate fund for
transparency purposes. The 2026 levy was increased by $75,000 to provide for the ongoing operations
of the EDA while maintaining a $150,000 levy for targeted economic initiatives.
On April 6, 2026, the City Council held a Public Hearing and adopted a resolution approving property tax
abatements for the west parking facility in the 105th Redevelopment District. This action formally
established the tax abatement district and provided the authority for the city to issue general obligation
bonds to finance the parking structure. The project cost is estimated at $15 million. Existing revenue
sources within the district, including tax abatement and tax increment financing from new
development, have already been committed to other public infrastructure obligations. Because these
revenues are fully allocated, they are not sufficient to support the new debt service associated with the
parking structure. Conversations during the workshops and public hearing indicated most of the
Council supported financing this activity with EDA funds. Annual debt service for the facility is estimated
at approximately $1,293,000 with a 20-year amortization schedule. The first debt service payment is
scheduled for 2028 and is proposed to be paid using EDA levy dollars collected in 2027. Annually, the
city council will determine how to fund the ramp debt service and can utilize any funding source
available, which could include the EDA levy in the future or other sources.
The 2027 City Manager's recommended levy is at $2,179,015 or the maximum allowed by statute. At
this level, $1,293,000 will be allocated to finance the estimated debt service for the west parking facility
and $888,015 will be used to fund the general operations of the EDA. This operating levy is suitable for
the continuation of routine ongoing operations, including staff salaries, business appreciation events,
and deliverables at the 3M Open as a result of reducing the annual transfer of funds to the General
Fund general administrative support. It's important to note that while this levy is sufficient to cover
existing obligations, no additional funds will be made available for development opportunities.

Page 9 of 16

EDA Levy History

Levy Item
Operating

2022 Levy

2024 Levy

2025 Levy

2026 Levy

$750,000

$1,000,000

$1,000,000

$1,000,000

$1,075,000

$888,015

-

-

-

$150,000

$150,000

$1,293,000

$750,000

$1,000,000

$1,000,000

$1,150,000

$1,225,000

$2,179,015

Non-Operating
Total

2023 Levy

2027 City
Manager
Recommend
Levy

Levy Setting Process
State statute requires local governments to adopt a preliminary levy by September 30. 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.
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 12
Utilities and Refuse Funds
October 19
Reserved for Budget Review if Needed (Levy & Utility Rates)
November 2
Review Charitable Gambling Fund Scoring
November 9
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

Page 10 of 16

Does the Council support the City Managers' recommended 2026 City and EDA property tax levies?
The current calendar calls for the adoption of the proposed property tax levies at the September 21 Council
meeting. Further adjustments will occur throughout the fall prior to final adoption in December.
Attachment List
1.
2.

City Levy Exhibits
General Fund & EDA Budgets

Page 11 of 16

City of Blaine, Minnesota
Exhibit A - 1
2027 Property Tax Levy - Detail - August 10, 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

2027 City
Percent
Total Change
Manager
Change From
2026 Final Levy
From '26 to
Recommended
'26 to '27
'27 Levy
(August)
Levy

Fund

General Fund
Personnel (Union & Nonunion Step Progression)
Cafeteria Plan 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

$

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

43,239,487
43,239,487

Total Capital

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

Debt Service
GO Improvement Bonds 2013A (67)
GO Equipment Capital Note 2016A (70) (NMTV)
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 2022 (79A)
GO Improvement Bonds 2023A (80A)
GO Equipment Certificates 2023A (80C)
105th Ave Tax Abatement Turf Fields (81) 2024A
GO Improvement Bonds (82A) 2024B
GO Equipment Certificates (82B) 2024B
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

Total Levy

$

54,230,000

$

43,239,487
1,825,907
167,520
125,000
50,000
125,000
271,838
184,008
(92,525)
200,000
(356,188)
50,000
163,872
75,000
(165,461)
45,863,458

2,623,971

6.1%

800,000
1,600,000
450,000
1,015,360
3,865,360

700,000

22.1%

850,000
9,341,182

1,516,029

19.4%

59,070,000

4,840,000

8.9%

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

$

Page 1

Page 12 of 16

City of Blaine, Minnesota
Exhibit A - 2
2027 Property Tax Levy - Detail - August 10, 2026 Workshop
Total Change From
'26 to '27 City
Levy Item

Fund/Category

Detail

Manager
Recommended
Levy

Base/existing employment base
1

Personnel (Union & Nonunion Step Progression)

Includes position reclassifications or adjustments through 7/15/2026

$

1,825,907

Assuming union group compensation per final contract settlements
Cafeteria plan assumes $600/year increase (same as previous years)
2

Cafeteria Plan Increase

167,520

$1,640 / month for full time employees electing coverage
$855 / month for full time employees if coverage is waived
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

125,000

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
4

Workers Compensation

2025 Retro-Premium refund of $493k; 2026 Retro-Premium charge of $66k (spring/annually)

-

2025 Audit Adjustment refund of $40k (fall/annually)
Ending 2025: Net Position $1.1M
No Increase (Typically spread amongst funds, 92% General Fund)
2021-2025: Funding $789k; Payouts $2.6MM; Total shortfall $1.8M

5

Compensated Absences

2025: Funding $161k; Payouts $408k; Shortfall $247k

50,000

Ending 2025: Cash $1.04M
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

125,000

Increase spread amongst funds, 76% General Fund
Assumes usage of overall Consumer Price Index change for 2025 = 2.7%
Total 2026 Expenditure Budget for General Fund = $53,352,887

7

Commodities/Services

271,838

Excludes: T&T = $312,725; SBM = $2,911,335; Facilities = $1,466,770; Personnel = $37,597,203
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)

184,008

2027 SBM proposed budget; city share $3.1M up 5.83%
Blaine 76%; Mounds View 15.5%; Mounds View 8.5%

Page 2

Page 13 of 16

City of Blaine, Minnesota
Exhibit A - 2
2027 Property Tax Levy - Detail - August 10, 2026 Workshop
Total Change From
'26 to '27 City
Levy Item

Fund/Category

Detail

Manager
Recommended
Levy

11

Elections

(92,525)

2027 is a non-election year, costs fluctuate accordingly
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

200,000

Most of the this time/cost is allocated to activities funded through debt
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, $419k per year
Administration fees charged to the Enterprise Funds for services provided by city employees, $2.6MM per year

13

Revenue Increases

(356,188)

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

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 improvent 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 to remain at $250k; 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 for 2026 and 2027
21

SBM Capital Equipment

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

-

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

$

4,840,000

Page 3

Page 14 of 16

City of Blaine, Minnesota
General Fund - 101
Summary of Revenues, Expenditures, and Change in Fund Balance
2027 City Manager Recommended Budget - Aug 10, 2026

2024 Actual

2023 Actual

2025 Actual

2026 Adopted

2026 Amended

2027 City Manager

Budget

Budget

Budget

Unaudited

2028 Projection

2029 Projection

2030 Projection

2031 Projection

Revenues
Taxes

$

Special Assessments

31,233,575

$

36,252,629

$

38,813,505

$

43,239,487

$

43,239,487

$

45,863,458

$

49,400,000

$

53,500,000

$

57,700,000

$

61,900,000

799

-

-

-

-

-

-

-

-

-

Licenses & Permits

2,952,707

3,045,226

2,481,978

2,348,700

2,373,700

2,304,450

2,254,450

2,204,450

2,154,450

2,104,450

Intergovernmental

2,079,673

2,500,893

3,022,169

2,308,000

2,587,934

2,538,173

2,613,173

2,688,173

2,763,173

2,838,173

Charges for Services

5,348,447

5,321,971

4,945,902

5,269,300

5,250,300

5,446,850

5,471,850

5,496,850

5,521,850

5,546,850

Fines & Forfeits

263,017

299,602

307,547

220,000

220,000

220,000

245,000

270,000

295,000

320,000

Investment Earnings

566,600

951,279

1,479,630

230,000

230,000

230,000

230,000

230,000

230,000

230,000

Miscellaneous
Total Revenues

75,920

127,329

196,506

120,000

120,000

120,000

125,000

130,000

135,000

140,000

42,520,738

48,498,929

51,247,237

53,735,487

54,021,421

56,722,931

60,339,473

64,519,473

68,799,473

73,079,473

Expenditures
Legislative
Administrative Services

460,109

463,329

556,250

541,921

541,921

639,977

671,976

705,575

740,854

777,897

2,642,225

2,924,481

2,730,939

3,294,364

3,292,364

3,299,878

3,464,872

3,638,116

3,820,022

4,011,023

Finance

3,207,501

3,199,059

3,514,717

4,614,247

4,614,247

4,805,826

5,046,117

5,298,423

5,563,344

5,841,511

Safety Services

17,369,766

18,872,206

19,977,746

23,085,914

23,092,784

24,497,283

26,072,147

27,725,754

29,462,042

31,285,144

Fire Services

2,361,784

2,490,793

2,724,708

2,911,335

2,911,335

3,095,343

3,250,110

3,412,616

3,583,247

3,762,409

Public Works

7,863,921

8,092,330

8,465,408

10,326,719

10,501,765

10,828,599

11,495,029

12,069,780

12,798,269

13,438,182

Engineering

1,884,954

1,999,846

2,147,896

2,379,975

2,404,975

2,506,509

2,631,834

2,938,426

3,085,347

3,239,614

Recreation

1,560,596

1,683,678

1,799,601

1,904,822

1,904,822

2,072,122

2,175,728

2,284,514

2,398,740

2,518,677

Community Development

2,657,734

2,750,179

2,661,361

3,210,532

3,297,531

3,274,906

3,438,651

3,610,584

3,791,113

3,980,669

436,319

627,889

939,451

1,148,058

1,148,058

1,334,888

1,617,932

1,919,429

2,242,100

2,589,205

Total Expenditures

40,444,909

43,103,790

45,518,077

53,417,887

53,709,802

56,355,331

59,864,396

63,603,217

67,485,078

71,444,331

Revenues Over (Under) Expenditures

2,075,829

5,395,139

5,729,160

317,600

311,619

367,600

475,077

916,256

1,314,395

1,635,142

151,000

Unallocated

Other Financing Sources (Uses)
Transfers In

112,807

37,500

-

122,400

122,400

122,400

129,000

136,000

143,000

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

129,000

136,000

143,000

151,000

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

688,636

5,069,744

2,813,464

440,000

432,019

490,000

604,077

1,052,256

1,457,395

1,786,142

Beginning Fund Balance

16,352,276

17,040,912

22,110,656

22,110,656

22,110,656

22,550,656

23,040,656

23,644,733

24,696,989

26,154,384

Ending Fund Balance

17,040,912

22,110,656

24,924,120

22,550,656

22,542,675

23,040,656

23,644,733

24,696,989

26,154,384

27,940,526

Adjust for Inventory

280,492

360,270

339,640

-

-

-

-

-

Adjust for Prepaid Items

57,236

74,893

345,660

-

-

-

-

-

16,703,184

21,675,493

24,238,820

23,040,656

23,644,733

24,696,989

26,154,384

27,940,526

30% Subsequent Years Budget

13,972,460

14,904,629

16,025,366

17,959,319

19,080,965

20,245,523

21,433,299

22,867,977

5% Subsequent Years Property Tax Levy

1,819,279

1,977,380

2,161,974

2,470,000

2,675,000

2,885,000

3,095,000

3,365,548

670,000

820,000

820,000

1,190,000

1,190,000

1,190,000

1,190,000

1,190,000

Adj Fund Balance, Dec 31 (Net of Restricted)

State Funding Un-Allotment
Budget Roll Forward Assignment

-

-

25,134

-

-

-

-

-

Minimum Unassigned Fund Balance

16,461,739

17,702,009

19,032,474

21,619,319

22,945,965

24,320,523

25,718,299

27,423,525

Unrestricted Fund Balance

$

241,445

$

3,973,484

$

5,206,346

$

1,421,337

$

698,768

$

376,466

$

436,085

$

517,001

Page 1

Page 15 of 16

City of Blaine, Minnesota
Economic Development Authority - 213 & 415
Summary of Revenues, Expenditures, and Change in Fund Balance
2027 City Manager Recommended Budget - Aug 10, 2026

2024 Actual

2023 Actual

2025 Actual

Unaudited

2026 Adopted

2026 Amended

2027 City Manager

Budget

Budget

Budget

2028 Projection

2029 Projection

2030 Projection

2031 Projection

EDA Operating Revenues
Taxes

$

996,729

$

1,008,661

$

994,435

$

1,080,000

$

1,080,000

$

891,015

$

930,000

$

970,000

$

1,010,000

$

1,050,000

Special Assessments

5,739

5,518

5,297

3,000

3,000

3,000

3,000

3,000

3,000

3,000

Charges for Services

64,440

97,934

108,698

69,400

69,400

62,200

64,700

67,200

69,700

72,200

Investment Earnings

165,943

116,710

125,929

15,000

15,000

10,000

10,000

10,000

10,000

10,000

2,229

1,952

-

-

-

-

-

-

-

-

1,235,080

1,230,775

1,234,359

1,167,400

1,167,400

966,215

1,007,700

1,050,200

1,092,700

1,135,200

182,652

195,559

203,228

214,428

214,428

226,668

236,668

246,668

256,668

266,668

361

105

304

500

500

500

500

500

500

500

334,658

294,443

289,699

452,000

452,000

286,055

298,555

311,055

323,555

336,055
531,977

Miscellaneous
Total EDA Operating Revenues

-

EDA Operating Expenditures
Personnel Services
Supplies
Contractual Services
Other Services & Charges
Capital Outlay
Total EDA Operating Expenditures
EDA Operating Subtotal

493,343

513,678

476,623

502,161

502,161

452,683

471,977

491,977

511,977

1,091,180

(4,042)

-

-

-

-

-

-

-

-

2,102,194

999,743

969,854

1,169,089

1,169,089

965,906

1,007,700

1,050,200

1,092,700

1,135,200

(867,114)

231,032

264,505

(1,689)

(1,689)

309

-

-

-

-

EDA Targeted Initiatives Revenues
Taxes
Investment Earnings
Miscellaneous
Total EDA Targeted Initiatives Revenues

-

-

150,000

150,000

150,000

1,293,000

1,300,000

1,300,000

1,300,000

1,300,000

(145,697)

5,888

90,542

-

-

10,000

10,000

10,000

10,000

10,000

-

-

66,876

-

-

-

-

-

-

-

(145,697)

5,888

307,418

150,000

150,000

1,303,000

1,310,000

1,310,000

1,310,000

1,310,000

EDA Targeted Initiatives Expenditures
Contractual Services

-

1,499,000

180,000

-

-

-

-

-

-

-

436,559

2,554,406

3,632,555

-

-

-

-

-

-

-

436,559

4,053,406

3,812,555

-

-

-

-

-

-

-

(582,256)

(4,047,518)

(3,505,137)

150,000

150,000

1,303,000

1,310,000

1,310,000

1,310,000

1,310,000

2,594,435

3,961,046

-

-

-

-

-

-

-

-

3,700

-

-

-

-

-

-

-

-

-

Transfer Out - 105th West Parking Debt Service

-

-

-

-

-

(1,300,000)

(1,300,000)

(1,300,000)

(1,300,000)

(1,300,000)

Land Sale Proceeds

-

-

3,011,799

-

-

-

-

-

-

-

2,590,735

3,961,046

3,011,799

-

-

(1,300,000)

(1,300,000)

(1,300,000)

(1,300,000)

(1,300,000)

Capital Outlay
Total Targeted Initiatives Expenditures
EDA Targeted Initiatives Subtotal
Other Financing Sources (Uses)
Transfers In
Transfers Out

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

1,141,365

144,560

(228,833)

148,311

148,311

3,309

10,000

10,000

10,000

10,000

Beginning Fund Balance
Ending Fund Balance

3,118,180
4,259,545

4,259,545
4,404,105

4,404,105
4,175,272

4,331,972
4,480,283

4,331,972
4,480,283

4,323,583
4,326,892

4,326,892
4,336,892

4,336,892
4,346,892

4,346,892
4,356,892

4,356,892
4,366,892

Beginning Cash

783,726

2,113,610

2,498,814

2,571,241

2,571,241

2,283,681

2,286,990

2,296,990

2,306,990

3,316,990

Change in Cash

1,329,884

385,204

(363,444)

148,311

148,311

3,309

10,000

10,000

1,010,000

1,464,430

Cash Reconcilliation

Ending Cash

$

2,113,610

$

2,498,814

$

2,135,370

Loans/Accounts Receivable

$

1,563,541

$

2,803,798

$

2,921,177

$

2,719,552

$

2,719,552

$

2,286,990

$

2,296,990

$

2,306,990

$

3,316,990

$

4,781,420

$

2,921,177

$

2,921,177

$

2,921,177

$

1,921,177

$

466,747

Page 2

Page 16 of 16