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Fiscal Year 2027 Operating Budget

At a glance

  • What: The Metro operating budget for Fiscal Year 2027 (BL2026-1377), the property tax levy for the General Services District (BL2026-1378) and the employee pay plans that take effect July 1, 2026 (RS2026-2004, RS2026-2005, RS2026-2006).
  • Where it stands: The budget passed third reading as substituted on June 16, 2026, 35 yes, 2 no, 0 abstain. The tax levy passed 29 yes, 7 no. The three pay plans were approved on the consent agenda.
  • Sponsor: Council Member Toombs, chair of the Budget and Finance Committee, offered the substitute that became the budget.
  • Contested point: A proposed amendment by Council Member Evans-Segall failed by voice vote after her motion to suspend the rules for a late amendment was blocked by objection.
  • Related: Grocery Sales Tax Reduction (the mayor called it part of the budget package), Central Business Improvement District Budgets, Capital Improvements Budget.

Detail

Mayor's message (June 16, 2026)

  • The Mayor called the vote "one of the most important nights on our annual civic calendar" and urged the Council to pass the Chair's substitute unamended.
  • He said the recommended budget and the substitute both prioritize housing, schools and employee pay while tightening spending because of slowing growth.
  • Housing: a proposed 150% increase in funding for housing affordability, the largest local investment to date. He said the Unified Housing Strategy has created or preserved more than 3,000 affordable homes since last year.
  • Schools: improved pay for teachers and educators, support to safely implement healthier school start times, and protecting programs expanded during the pandemic.
  • He noted extensive public comment on the budget this year, with affordability as the main theme.

BL2026-1377, Budget Ordinance for Fiscal Year 2027

  • The Budget and Finance Committee approved the bill with a substitute.
  • Toombs moved third reading, then offered the substitute bill; the substitute was adopted by voice vote.
  • Toombs moved third reading as substituted. Evans-Segall offered an amendment. She then moved to suspend the rules to allow a late amendment, but met "requisite objection" and the motion failed.
  • Council Member Benedict called the previous question on the amendment (voice vote, approved). The amendment failed by voice vote.
  • Benedict called the previous question again on passage (voice vote, approved).
  • Passed third reading as substituted: Yes (35) Suara, Porterfield, Evans-Segall, Allen, Hill, Kimbrough, Toombs, Gamble, Cortese, Parker, Capp, Benedict, Harrell, Hancock, Webb, Evans, Bradford, Huffman, Welsch, Cash, Kupin, Horton, Taylor, Weiner, Druffel, Preptit, Nash, Benton, Ellis, Sepulveda, Rutherford, Styles, Lee, Ewing and Spain; No (2) Eslick and Johnston; Abstain (0). Gregg, Vo and Gadd were absent.
  • The minutes do not give the total dollar amount of the budget or describe the contents of the substitute or of Evans-Segall's amendment.

BL2026-1378, tax levy

  • An ordinance establishing the tax levy in the General Services District for fiscal year 2026-2027 and declaring the amount required for the annual operating budget of the Urban Services District under section 6.07 of the Metropolitan Charter.
  • The Budget and Finance Committee approved it. Toombs moved third reading.
  • Yes (29) Suara, Porterfield, Evans-Segall, Allen, Hill, Toombs, Gamble, Cortese, Parker, Capp, Benedict, Harrell, Bradford, Huffman, Welsch, Cash, Horton, Taylor, Druffel, Preptit, Nash, Benton, Ellis, Sepulveda, Rutherford, Styles, Lee, Ewing and Spain; No (7) Kimbrough, Hancock, Webb, Eslick, Evans, Kupin and Johnston; Abstain (0).
  • The minutes do not state the tax rate.

Mayor's budget message (May 7, 2026)

  • At the May 7 special meeting, the Mayor sent a message to Vice Mayor Henderson and the Council saying he had filed the third operating budget of the shared term the previous Friday, focused on affordability for residents and employees.
  • It recommends cutting the local option sales tax on groceries by 22% (see Grocery Sales Tax Reduction), a $69 million investment in the Unified Housing Strategy, and full funding of the second year of the employee pay plan. He said the budget continues to invest in schools, services and safety, and requires Metro to "tighten its belt" given local, state and national economic conditions.
  • A second message transmitted the state reporting forms for the 2026 Series D General Obligation bonds, $556,660,000, issued to refinance outstanding bonds under Resolution RS2026-1772 (February 3, 2026). Moody's, S&P and Kroll reaffirmed Metro's credit ratings; the aggregate interest rate was 3.188%, with net present value savings of $18,830,686.
  • Related May 7 action: the Council adopted RS2026-1931 on fiscal year 2027 arts grant criteria (Arts Commission Grant Criteria).

Earlier readings (May 19 and June 2, 2026)

  • May 19 (first reading): BL2026-1377 (budget) and BL2026-1378 (tax levy) passed first reading on motion and were set for the June 2 public hearing, referred to the Budget and Finance Committee. BL2026-1379, creating 17 new job classifications (including Historic Zoning Administrator, Fire Arson Investigator 1 and several Pre-Trial Housing positions), also passed first reading.
  • June 2 (public hearing, second reading): Both bills had been approved and re-referred by the Budget and Finance Committee. Toombs requested the advertised hearings. On the budget, citizens were heard in favor and in opposition; on the tax levy no one came forward. Toombs moved each bill on second reading with re-referral to Budget and Finance; both approved by voice vote. The minutes do not name the speakers.
  • June 2 (pay plans): RS2026-2004 (general employees), RS2026-2005 (Board of Health) and RS2026-2006 (Police and Fire) were deferred under Rule 8.1 on committee recommendation; they came back and passed on the June 16 consent agenda.
  • June 2 (consent, same night): BL2026-1379 passed second reading on the consent agenda. Consent also carried RS2026-2002 (appropriating $26,484,000 from the General Fund Reserve Fund for equipment and building repairs for various departments) and RS2026-2003 (appropriating $21,775,500 for the Administrative Department, Office of Emergency Management and Sheriff's Office).
  • RS2026-2004: new pay plan for general Metro employees, excluding the Board of Health, Board of Education, Police and Fire.
  • RS2026-2005: new pay plan for Metropolitan Board of Health employees.
  • RS2026-2006: new pay plan for Police and Fire employees.
  • All three had Budget and Finance and Government Operations and Regulations Committee approval (the Board of Health and Police and Fire plans also had Public Health and Safety approval). They passed with the consent agenda, 31 yes, 0 no, 0 abstain.

Sources

Log

2026-06-16 - Metropolitan Council

Budget passed third reading as substituted 35-2-0; Evans-Segall amendment failed; tax levy passed 29-7-0; pay plans approved on consent 31-0-0.

2026-06-02 - Metropolitan Council

Public hearings on the budget (speakers for and against) and tax levy (no speakers); both passed second reading by voice vote on Toombs's motions. Pay plans deferred under Rule 8.1.

2026-05-19 - Metropolitan Council

BL2026-1377 and BL2026-1378 passed first reading; set for the June 2 public hearing.

2026-05-07 - Metropolitan Council

Mayor's budget message and bond-refinancing report received; Arts Commission grant criteria adopted 27-5-0.