Council approves proposed 2026 general fund budget and sets Dec. 16 public hearing for property tax levy; vote 3‑2

The City Council approved Resolution 2025‑060 to place the proposed 2026 general fund budget and property tax levy on the schedule for adoption and set a public hearing for Tuesday, Dec. 16, 2025, at 7 p.m. The motion passed on a recorded voice count of 3 in favor and 2 opposed.

City finance staff presented the proposed general fund budget and levy. Staff summarized projected tax revenues of about $6.3 million, non‑tax revenues just over $2.2 million, and total proposed general fund expenses of roughly $8.8 million (an 11 percent increase over 2025). Staff said parts of the increase reflect added public‑works personnel, partial‑year funding for three fire captains in 2026 (with full‑year cost in 2027), continued multi‑year planning work, the second year of a finance software implementation, a market wage analysis, and building maintenance costs tied to the city center.

Staff presented a package of new capital levies intended to fund longer‑term needs: an infrastructure reserve for larger street reconstruction and reclamation, a city center capital improvement fund, vehicle and equipment levies, and a street maintenance levy for mill/overlay and chip seal work. The proposal shown to council totaled $11,497,785 — an increase of about $1.4 million (14 percent) over 2025 — with an estimated tax‑rate impact that staff said would raise the typical median‑valued home’s annual city property tax by about $179 (roughly $15 per month). Staff also compared the city’s tax rate and median‑home tax with other Washington County cities.

Council members exchanged detailed questions and scenarios about the pace of funding infrastructure reserves and the long‑term effect on debt. Councilmember Hearn and others asked for more modeling and fund‑balance scenarios showing the tradeoffs of reducing the initial infrastructure levy; staff said models had been prepared and additional strategic planning work would follow. Councilmember Jerry Sitch and others discussed the use of stormwater utility funds for stormwater components of capital projects.

After discussion, a motion to approve Resolution 2025‑060 (approving the proposed general fund budget and property tax levy and setting the Dec. 16 public hearing) passed with a 3‑2 vote. Staff indicated further discussion and public input will occur before final levy adoption (the levy may be decreased at final adoption but not increased).