City Council voted to set the municipal tax rate at 2.1536 for fiscal year 2026 and to assign $1,045,979.50 of prior-year fund balance as a reserve on the balance sheet.

City Treasurer Mary Markowski told the council she had revised fund-balance calculations and recommended reserving prior-year funds so the city can comply with the voter-approved budget while limiting immediate tax increases. "The tax rate that I will I'm proposing is 2.1536 okay That's up from 2.0172 in f y 25," Markowski said.

The council approved a motion to set aside $1,045,979.50 as a prior-year fund balance assignment; the motion passed after the council suspended the rules. Council members then voted to adopt the municipal rate of 2.1536. Markowski said the increase is a 6.7% rise over the prior year and that, on the municipal portion, it equals $204.48 more annually for a property assessed at $150,000.

Markowski said the city's FY25 book-keeping showed a net reduction of about $1,357,071 in fund balance, driven partly by ARPA spending that had already been appropriated. She also noted adjustments to restricted funds, including opioid-restricted funds the board had previously approved as expenses for the police department. Those restricted funds were handled separately in her calculation.

Council members discussed how the voter-approved budget and the city's charter required setting the rate consistent with the approved budget and noted an option the League of Cities had offered — collect the higher amount and return it later — but the treasurer said the council's approach was to reserve the funds on the balance sheet so the city would not operate under the higher appropriation.

The council also approved the statutorily required education tax rates: a homestead rate of 1.6058 (down from 1.6745) and a non-homestead rate of 1.9273 (up from 1.8571). Those education rates were set by roll call after the motion passed 8–1, with Alderman Gillum recorded as the lone no vote. The city provided combined-impact figures: a $150,000 homestead assessment would have a net increase of $101.43 (municipal plus education changes), and a $150,000 non-homestead assessment would increase by $309.78.

Alderman Gillum voiced concern about the non-homestead increase and its impact on rental-property owners in his neighborhood. "I'm just I'm very very, very concerned, especially in my neighborhood, which is mostly rental income or rental units... Those are the people who are gonna get real hit real hard underneath this non homestead rate," Gillum said.

Markowski told the council she would carry the reserved assignment forward on the balance sheet and that the funds would become available again in FY27 if the council chose to release them. The council followed the treasurer's motions to ratify prior-year adjustments the treasurer had already executed to make the FY26 calculations accurate.

The council adjourned after completing the tax-rate, fund-balance and education-rate votes.