Metropolitan Council CFO presents preliminary 2026 operating budget and levy proposal
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Summary
Chief Financial Officer Ned Smith presented the Metropolitan Council's preliminary operating budget and levy strategy for 2026, including a proposed 2% increase in total levies, a proposed $15.5 million for the Livable Communities demonstration account, and a rolled-up council budget of about $1.8 billion.
Ned Smith, chief financial officer of the Metropolitan Council, presented an informational overview of the Council's preliminary 2026 operating budget at the Aug. 13 meeting.
Smith said the Council's unified operating budget rolls up to about $1,800,000,000 for 2026, with roughly two-thirds of levies driven by transit and parks debt service. He said the Council is proposing a 2% increase in total levies for 2026 and highlighted three levy categories: a fixed $5,000,000 tax-based revitalization account required by statute; a proposed $15.5 million Livable Communities demonstration account levy tied to the implicit price deflator; and a general purpose levy proposed at $19,800,000.
Smith described the Council's levy strategy as meeting transit and parks debt service needs while maximizing the general purpose and Livable Communities demonstration levies within limits set by the implicit price deflator. He emphasized that a levy the Council approves may be lowered later but not increased in subsequent actions.
On operating details, Smith said salaries and benefits are rising because of wage and FTE growth and that contracted services increased largely because of information-services costs and transit contract services. He reported the Council's other post-employment benefits (OPEB) trust is fully funded following past contributions and investment allocations. The Council's FTE count for the budget was stated at about 5,770, with transportation comprising the majority of FTEs and environmental services accounting for a smaller but significant share.
Smith said the Council will present a capital program overview on Oct. 8 and that the unified budget will return to the Council for public comment and adoption in December. He also noted the statutory requirement for the regional administrator to prepare a budget under Minnesota Statute 473.125. No vote on the operating budget occurred at the Aug. 13 meeting; Council members will consider levies and the preliminary operating budget at a later date.
