Leavenworth staff present mid‑biennial budget review; recommend taking allowable 1% property-tax increase
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Summary
City staff presented a department-by-department mid-biennial budget review and recommended the council consider taking the statutory 1% levy increase for 2026. Staff described an increase driven by new construction revenue and rising insurance and operating costs and said a final levy ordinance would return to council on Nov. 12.
City staff opened the public hearing on the city—s mid-biennial budget review and ad valorem (property-tax) options at the Oct. 28 Leavenworth City Council meeting.
Chantelle (staff presenter) summarized 2024 accomplishments across administration, communications, human resources and parks, and outlined department goals for 2026 including a website redesign, NeoGov human-resources software, parking-garage feasibility and continued wildfire preparedness initiatives. The communications team reported 55,431 email sends to date in 2025 with a 60% open rate and a 9% click-through rate.
Finance staff described the city—s property-tax capacity for 2026. Chantelle said state law limits the city to a 1% automatic levy increase (the so-called levy lid lift). If the council takes the full 1% the increase for this year would be $7,422.80. Staff reported roughly $29,000 of additional revenue attributable to new construction (staff referenced about $37 million in new construction assessed to the city this year). The city currently has no banked levy capacity.
Chantelle said the council budgeted roughly $764,000 in property-tax receipts and that updated calculations suggest the receipts might reach approximately $777,000, largely because of the new-construction figure.
The finance presentation also noted municipal operating pressures for 2026, including an approximate 10% increase in insurance premiums that staff said approaches an additional nearly $1 million on the city—s overall insurance bill. Staff also said the city manages a roughly $44 million annual budget and is monitoring federal and state audit schedules.
Staff did not request a final decision at the hearing. Chantelle said she would return with an ordinance for council action at a Nov. 12 meeting and that the final levy certification is due later in November.
Ending: Council members asked clarifying questions about the tax comparisons with neighboring jurisdictions and the mechanics of cost allocation. Staff said they likely will recommend adopting the 1% levy at the upcoming meeting and that further budget amendments and rate adjustments will follow in December and April as projects and fund balances are finalized.
