2026 Final Levy & Budget PresentationDECEMBER 1, 2025
Truth in Taxation
2026 Tax Levy and Budget
Property Taxes Calculation
Budget + Debt
Budget + Debt – Non property tax revenues = Levy for property tax
Assessed value X Rate = Tax
Levy for property taxes / tax capacity = rate
Tax – credits – refunds = Net Tax
Net Tax = Property Tax
Total Tax Levy Factors
1.Market Value
2.Tax Capacity
3.Property Class Rates
4.State Aids
5.County Budget/Tax Levy
6.School Operating Levy
7.School District voter Approved Debt Obligations
8.City Budget and Tax Levies
9.Special State Laws; I.e. Credits and Exclusions
Reason for tonight’s
meeting and only
item controlled by
City
Budget Process Overview
Planning (May – Aug.)
Review of timelines, key issues and financial outlook
Department Budget Requests (June – Aug.)
Administration/Finance review of department requests
Staff Recommended Budget
City Council Review (Aug. – Nov.)
Council Workshops
Set Preliminary Budget - Council Action (Sept.)
•September 8, 2025 City Council approved a preliminary levy of 7.17%
Truth in Taxation Notice
Final Review and Adoption of Budget (Dec.)
Truth-in-Taxation Hearing (proposed levy of 7.17%)
Final Budget and Levy - Council Action
Budget History
Historical Change in Total Levy (%)
Year Total Levy
2015 5.97%
2016 4.98%
2017 2.94%
2018 2.89%
2019 2.99%
2020 4.76%
2021 2.90%
2022 4.99%
2023 4.99%
2024 16.04%
2025 5.40%
2026 7.17%
2026 Tax Levy
2025 Total Levy $820,438
2026 Total Levy $5,820,438
o Operations Levy $2,824,129
o Capital Levy $2,615,430
o Debt Levy $ 797,961
2025 to 2026 Change in Levy (7.17%)
o Debt Service Levy Increase 5.67% = $42,836
o General Levy increase 3.78% = $102,835
o Capital Levy Increase 11.58% = $271,412
o Total Levy Increase 7.17% = $417,083
2026 Budget – Revenue
The Revenue side of the budget determines where the funding comes from to pay for city expenses.
We build the revenue budget as expenses are evaluated. Including determining the level of inflow we expect from:
Licensing and Permits
Other Agencies and Governments
Charges for Services
Other Misc. Sources
Tax Levy amounts are then determined by category to meet
the remaining funding required for operational needs, capital
improvements, and debt service.
2026 Budget – Revenue
2026 Revenue Changes (+/-)
Increase Fire Contract: $216,740
Increase Capital Levy: $271,412
Increase in Operations Levy: $102,835
Increase in Building Permit Fees: $50,000
Increase in Plan Check Fees: $16,000
Increase in Police Aid: $15,000
Decrease Gas Franchise: ($18,000)
Decrease Cable Franchise: ($5,000)
Decrease in Charges for Services: ($8,000)
Decrease in Plan Check Fees: ($15,000)
2026 Expense Changes (+/-)
Increase Police Protection: $21,504
Increase Fire Department Operations: $253,373
Increase Capital: $271,412 (capital outlay)
Where the Tax Dollars Go
2026 Taxable Market Value
Seeing the Expense and Revenue sides of the budget process gets us part of the way there – but there is more to the story…
BUDGET TAXABLE MARKET VALUE
Sources and Uses Basis for Levy Application
Revenue Property Values
Expense Residential (County Assessor)
Commercial / Industrial (County Assessor)
NET TAX CAPACITY
Formula applied to Taxable Market Value
Determined by State Including Homestead
Credits
Overall, the City of Albertville’s Net Tax Capacity increased 3.36%
Budgeted Levy Amounts and Net Tax Capacity ultimately determine the City’s Tax Rate.
2026 Tax Capacity Explanation
Tax capacity is calculated by multiplying the
property market value by the appropriate class
rate percentage.
Residential Homestead:
First $500,000 of value: 1.00%
Value over $500,000: 1.25%
Commercial/Industrial:
First $150,000: 1.50%
Value over $150,000: 2.00%
2026 Residential City Tax Example
Residential
2025 taxes
payable
2026 taxes payable
(no change in value)
2026 taxes payable
($50k change in value)
Taxable Value $300,000.00 $300,000.00 $350,000.00
Res. Homestead <$500k 1.00%1.00%1.00%
Res. Homestead >$500k 1.25%1.25%1.25%
Tax Capacity 3,000.00 3,000.00 3,500.00
City Tax Capacity Rate 42.81%44.71%44.71%
City Taxes Owed $1,255.50 $1,341.30 $1,617.16
2026 Commercial City Tax Example
Commercial 2025 taxes payable
2026 taxes payable
(no change in value)
2026 taxes payable
($500k change in value)
Taxable Value $1,500,000.00 $1,500,000.00 $2,000,000.00
First $150k 1.5%1.50%1.50%1.50%
Over $150k 2.0%2.00%2.00%2.00%
Tax Capacity 27,500 27,500 37,500
City Tax Capacity Rate 42.81%44.17%44.17%
City Taxes Owed $12,521.93 $12,919.73 $24,735.36
2026 Budget & Levy Summary
2026 Total Budget (with capital) = $7,547,332
2026 Total Levy $6,237,520
Debt Service Levy = $797,961 (increase of $42,836)
General Operations Levy = $2,824,129 (increase of $102,835)
Capital Levy = $2,615,430 (increase $271,412)
Total Levy Increase= $417,083 (increase 7.17%)