Monroe County council reviews 2026 levy estimates as circuit-breaker losses jump

Monroe County Council members spent a sizable portion of Tuesday’s meeting reviewing draft 2026 levy limits and the increased effect of the state’s property-tax circuit-breaker credits, which local officials said will sharply reduce taxable revenue for taxing units even as it lowers bills for many homeowners. The council reviewed Department of Local Government Finance (DLGF) estimates that show a marked increase in projected circuit-breaker credits; Councilor Hawke said the county’s estimated circuit-breaker loss is about $1,757,600 and that the city’s estimate is about $1,589,700. “This is a gigantic change,” Hawke said during the meeting. The auditor and treasurer told the council the DLGF numbers are preliminary and likely conservative; Bree Gregory, county auditor, said staff will update the council after receiving the certified net assessed value (CNAV) and will post the detailed numbers in meeting packets. “When we have that CNAV number, we will be adjusting the cumulative capital development number,” Gregory said. Treasurer Cathy Smith warned that other tax-law changes this year will make tax bills and taxpayer communications more complex. Smith said she expects long lines and heavy call volumes when tax bills are mailed next spring and asked the council to plan for increased service demands. “We are anticipating long lines and people maybe have to make an appointment,” Smith said, urging the council to plan outreach materials and additional staff time. Councilor Iverson and others asked staff to publish clear materials showing the DLGF estimates and their budget impact; Gregory said those will be added to the packet before the next meeting. The council directed the auditor to notify nonbinding taxing units that the fiscal body had reviewed the 2026 estimated levy limits and property-tax caps and would not change them at this time, while recommending that taxing units recognize the projected circuit-breaker reductions when preparing their budgets. Why it matters: the circuit-breaker credits (a state-level property-tax credit program) directly reduce tax receipts for counties, cities and local taxing units while lowering many homeowners’ bills. Councilors and staff said the rapid change in projected credits will complicate budget planning for 2026 and require outreach to taxpayers and taxing units. Details and next steps: staff will post the CNAV and updated levy worksheets when they are available; the auditor has increased advertised budgets by 30% to allow council flexibility during budget hearings; the treasurer and auditor will prepare fact sheets to include in tax-bill mailings and urged council members to direct constituents to those resources. Public-facing notes: councilors emphasized the difference between tax relief to individual homeowners and the aggregate revenue loss that local governments must absorb or replace through other revenue measures such as local income tax rates.