StoryIntroduction of priority-based budgeting approach and 2026 budget timelineJuly 31, 2025

Bloomington Adopts Priority-Based Budgeting for 2026

Meeting date: Jul 31, 2025
Published Aug 23, 2025

The City of Bloomington will implement a new priority-based budgeting approach for its 2026 budget process to address mounting financial pressures, Deputy Finance Officer Kari Carlson announced during a recent update to the City Council.

The city faces budget challenges including expiring funding sources, rising costs, and aging infrastructure and facilities, according to Carlson's presentation. The priority-based budgeting method represents a national best practice designed to evaluate city programs based on community needs and align resources with the city's "Bloomington. Tomorrow. Together." strategic plan.

The City Council will hold a budget study session on Aug. 18 at 6:30 p.m. in the City Council Chambers, where Carlson will present budget information and options for consideration. The session will include an opportunity for public comment before council discussion begins.

The council is expected to set the preliminary 2026 budget and levy on Sept. 8, with budget refinement continuing throughout the fall. A truth-in-taxation public hearing is scheduled for Dec. 8, followed by another study session on Dec. 15.

Final budget adoption is scheduled for Dec. 22. The annual budget funds city services including public safety, public works, and parks and recreation. Residents can find more information at blm.mn/budget.

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Update on 2026 Budget Process and Introduction of Priority-Based Budgeting

No official action or vote taken during this informational presentation.

Deputy Finance Officer Kari Carlson presented an overview of the challenges facing the city's 2026 budget, such as expiring funding and rising costs. She introduced the implementation of Priority-Based Budgeting to enhance decision-making and resource allocation. Carlson also communicated upcoming key dates for public engagement and Council action, including study sessions, a public hearing, and final budget adoption.

LIKE MANY COMMUNITIES, BLOOMINGTON IS FACING BUDGET PRESSURES INCLUDING EXPIRING FUNDING SOURCES, RISING COSTS, AND AGING INFRASTRUCTURE AND FACILITIES.

Kari Carlson/Deputy Finance Officer [0:18]
Update on 2026 Budget Process and Introduction of Priority-Based Budgeting

WE’RE INCORPORATING A NEW APPROACH CALLED PRIORITY-BASED BUDGETING. THIS NATIONAL BEST PRACTICE HELPS US EVALUATE ALL CITY PROGRAMS BASED ON COMMUNITY NEEDS, ALIGN RESOURCES WITH OUR BLOOMINGTON. TOMORROW. TOGETHER. STRATEGIC PLAN, MAKE DATA-DRIVEN DECISIONS, AND INCREASE TRANSPARENCY AND ACCOUNTABILITY.

Kari Carlson/Deputy Finance Officer [0:28]
Update on 2026 Budget Process and Introduction of Priority-Based Budgeting

THE GOAL IS TO PRIORITIZE WHAT MATTERS MOST AND MAKE SMART, SUSTAINABLE CHOICES FOR THE LONG TERM.

Kari Carlson/Deputy Finance Officer [0:43]
Update on 2026 Budget Process and Introduction of Priority-Based Budgeting
Source document

[0:02] HI, I’M CITY OF BLOOMINGTON DEPUTY FINANCE

OFFICER KARI CARLSON, AND I’M HERE TO SHARE

[0:07] AN UPDATE ON OUR 2026 BUDGET PROCESS.

EACH YEAR, THE CITY COUNCIL APPROVES A

[0:12] BUDGET TO FUND CITY SERVICES LIKE PUBLIC SAFETY,

PUBLIC WORKS, AND PARKS AND RECREATION. LIKE

[0:18] MANY COMMUNITIES, BLOOMINGTON IS FACING BUDGET

PRESSURES INCLUDING EXPIRING FUNDING SOURCES,

[0:23] RISING COSTS, AND AGING INFRASTRUCTURE AND

FACILITIES. TO NAVIGATE THESE CHALLENGES,

[0:28] WE’RE INCORPORATING A NEW APPROACH CALLED

PRIORITY-BASED BUDGETING. THIS NATIONAL BEST

[0:33] PRACTICE HELPS US EVALUATE ALL CITY PROGRAMS

BASED ON COMMUNITY NEEDS, ALIGN RESOURCES WITH

[0:38] OUR BLOOMINGTON. TOMORROW. TOGETHER. STRATEGIC

PLAN, MAKE DATA-DRIVEN DECISIONS, AND INCREASE

[0:43] TRANSPARENCY AND ACCOUNTABILITY. THE GOAL IS

TO PRIORITIZE WHAT MATTERS MOST AND MAKE SMART,

[0:49] SUSTAINABLE CHOICES FOR THE LONG TERM.

ON MONDAY, AUGUST 18 AT 6:30 P.M.,

[0:54] THE CITY COUNCIL WILL HOLD A STUDY SESSION

IN THE CITY COUNCIL CHAMBERS TO REVIEW

[0:59] THE 2026 BUDGET. I’LL PRESENT BUDGET

INFORMATION AND OPTIONS TO CONSIDER,

[1:04] FOLLOWED BY AN OPPORTUNITY FOR PUBLIC COMMENT

BEFORE THE COUNCIL BEGINS THEIR DISCUSSION.

[1:09] THE COUNCIL IS EXPECTED TO SET THE PRELIMINARY

2026 BUDGET AND LEVY ON SEPTEMBER 8. REFINEMENT

[1:15] OF THE BUDGET WILL CONTINUE THROUGHOUT THE

FALL. THEN AT THE END OF THE YEAR THERE

[1:20] WILL BE A TRUTH-IN-TAXATION PUBLIC HEARING ON

DECEMBER 8, ANOTHER STUDY SESSION ON DECEMBER 15,

[1:27] AND FINAL BUDGET ADOPTION SCHEDULED FOR DECEMBER

22. FOR MORE INFORMATION, VISIT BLM.MN/BUDGET TO

[1:36] STAY INFORMED AND ENGAGED.

THANK YOU.

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  • 2026 Budget Process and Priority-Based Budgeting

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