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Council discusses FY2025‑26 budget, tax‑rate options; schedules public hearing for June
Summary
Staff updated the council on tentative FY2025‑26 budget options, showing how resetting the tax rate toward 2022 levels would yield roughly $60,000 in additional revenue; council agreed to set a public hearing and notify county/state per required timelines.
City staff provided an update on the tentative FY2025‑26 budget and the relationship between the city’s tax rate, taxable value changes and new growth revenue. The discussion focused on whether to revert the tax rate to levels used in 2022–23 and how that choice would affect revenue.
The budget presentation showed the city’s budgeted tax amount (state‑required base), new growth revenue and how valuation increases previously caused the county to reduce the tax rate to meet the city’s budgeted amount. Staff said reverting the tax rate toward the 2022 level would add roughly $60,000 in revenue. "If we were to say we want to bring in...bring us in roughly $60,000," a staff presenter said. Staff also explained that reverting the rate would require advertising under truth‑in‑taxation procedures and that comparing across years can show a large percent change if the prior year’s rate was reduced.
Council discussed alternatives including holding the rate (which would forgo the roughly $60,000) and identified competing budget pressures such as police staffing and irrigation fund changes. Staff proposed a public hearing on the truth‑in‑taxation matter and indicated the county must be notified by June 1. Council agreed to schedule the public hearing for the council meeting on June 2 at 6:00 p.m., followed by the regular meeting.
Why it matters: The council’s decision on the tax rate determines whether the city pursues additional general‑fund revenue to cover projects and rising costs, or holds rates steady and seeks elsewhere to balance the budget.
Ending: Staff will notify county and state officials per the truth‑in‑taxation timeline and present proposed rates and supporting materials at the June public hearing.
