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International Falls council approves THC sales ordinance, adopts 20% preliminary levy
Summary
At a special Sept. 22 meeting, the International Falls City Council approved the second and final reading of an ordinance regulating tetrahydrocannabinol (THC) product sales and unanimously adopted a 20% preliminary levy to fund city operations and the ambulance fund.
The International Falls City Council approved the second and final reading of a tetrahydrocannabinol product sales ordinance and unanimously adopted a 20% preliminary levy at a special meeting Sept. 22.
The second-and-final reading of the THC product sales ordinance passed on a motion by Councilor Wagner, seconded by Councilor Kaler, and was approved by voice vote. The ordinance was described in the meeting as the city's regulation of THC product sales (referred to in the meeting as the THC or cannabis ordinance). The council did not specify an ordinance number in the record.
The council then reviewed and adopted a resolution approving the 2026 preliminary budget and a preliminary property tax levy of 20 percent. The motion to adopt the 20% preliminary levy was moved by Councilor Wagner and seconded by Councilor Holden; the motion passed unanimously.
Council discussion on the levy focused on two components: a roughly 10% increase described as a routine levy component and an additional roughly 10% increase intended to address the ambulance fund. The presiding council member said they would not support a 20% final levy and described the 20% figure as a preliminary position to be revisited. The presiding council member said, "I certainly won't vote for a 20% levy increase for a final," and opened the floor for further discussion.
According to the record, the ambulance service has been funded in recent years by transfers or loans from the city's general fund rather than by a dedicated levy. Betty, identified in the transcript as a staff member, confirmed that the ambulance fund has received loans from the general fund and that the loans are currently considered uncollectible: "That is correct," Betty said when asked to confirm the past funding arrangement. Meeting remarks said that without action the city faces a future reduction in reserves when those amounts are written off.
Council members discussed options to address the ambulance funding shortfall. They said a taxing district that includes the city could eventually remove the ambulance portion from the city's final levy, but they also noted that some form of property tax line item for the ambulance service is likely unless other arrangements are made. The presiding council member said the council aims to lower the levy before the final levy is set in December.
Staff and council members noted a deadline to submit preliminary levy information to the county next week. The council did not provide dollar figures for the levy increase or for the ambulance fund shortfall in the meeting record; those figures were not specified.
The council adjourned at the conclusion of the special meeting.
Votes at a glance
- Tetrahydrocannabinol product sales ordinance (second and final reading): Motion to approve by Councilor Wagner; second by Councilor Kaler; outcome: approved (unanimous voice vote). Ordinance number: not specified.
- Resolution approving the 2026 preliminary budget and a 20% preliminary levy: Motion to approve by Councilor Wagner; second by Councilor Holden; outcome: approved (unanimous vote). Preliminary levy split discussed as ~10% usual levy + ~10% for ambulance funding; council stated intent to revisit and lower the final levy in December.
