Bloomington adopts new budgeting approach for 2026 fiscal year
The Bloomington City Council heard a presentation Thursday on how the city will tackle its 2026 budget using a new decision-making method called Priority-Based Budgeting. The approach aims to align spending with community needs and long-term goals as the city faces mounting financial pressures.
Deputy Finance Officer Kari Carlson told the council that Bloomington, like many communities, is grappling with serious budget challenges. "We're facing budget pressures including expiring funding sources, rising costs, and aging infrastructure and facilities," Carlson said.
To address these challenges, the city is adopting Priority-Based Budgeting, a method used by municipalities across the country. The approach evaluates all city programs based on what the community needs most, then aligns spending with the city's strategic plan called "Bloomington. Tomorrow. Together." Carlson explained that the new method will help the city make decisions based on data rather than tradition, while also being more transparent about how tax dollars are spent.
"The goal is to prioritize what matters most and make smart, sustainable choices for the long term," Carlson said. The new budgeting approach will evaluate every city program and service to determine which ones best serve residents' needs and align with the city's strategic priorities.
No official vote was taken during Thursday's presentation, which was informational only. However, the council will have multiple opportunities to weigh in on the 2026 budget in coming months. Carlson outlined a timeline that includes study sessions where council members will dive deeper into the budget details, a public hearing where residents can share their views on proposed taxes, and a final vote on budget adoption. The city council chambers will host the upcoming 2026 Budget Study Session, where residents interested in the process can observe and learn more about how their city allocates resources.
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Update on 2026 Budget Process and Introduction of Priority-Based Budgeting
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.
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.
THE GOAL IS TO PRIORITIZE WHAT MATTERS MOST AND MAKE SMART, SUSTAINABLE CHOICES FOR THE LONG TERM.
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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