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Council sets 2026 maximum tax rate amid warnings about widening budget gap
Summary
The City Council voted to set the 2026 tax rate not to exceed the voter-approval rate of $0.227427 per $100 of assessed value, after hearing staff analyses showing personnel costs are driving a growing shortfall and citizens warning that rapid property valuation gains complicate decisions.
The City Council voted to set the 2026 tax rate not to exceed the voter-approval rate of $0.227427 per $100 of assessed value, a move council members said preserves flexibility as staff works to close a growing gap between revenues and expenses.
The vote followed a staff budget presentation showing the proposed budget published last Friday was prepared at the current tax rate but that “personnel costs are the largest growth” and are outpacing revenue, Krista, a city finance staff member, told the council. Krista said general-fund personnel costs are about 51% of general-fund expenses and that personnel growth over three years represented roughly $2.7 million in higher costs.
Council members and members of the public debated the tradeoffs of raising taxes versus cutting services. The mayor framed the choice bluntly: “We have to raise that blue line then. Is this the council that wants…
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