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Council adopts 2026 budget and compensation plan after intense debate over Development Corp conditions
Summary
Mitchell City Council adopted the 2026 annual appropriation ordinance and a compensation resolution that raises wages by 3%. Councilors debated proposed terms tying city appropriations to measurable goals for the Mitchell Area Development Corporation (MADC), but the ordinance was approved without making the conditions mandatory.
Mitchell — The City Council approved the 2026 annual appropriation ordinance (O2025-15) and a companion compensation resolution that sets a 3% increase to elected wages and most full-time wage ranges.
Finance staff said the budget reflects council changes made during prior budget meetings and will not change the structurally balanced status of the plan. The council approved the ordinance on second reading after extended discussion about specific line items, including a $417,000 city contribution toward a $1,053,000 golf-course improvement project and several supplemental projects funded from dedicated reserves.
A major portion of debate focused on a proposed "terms and conditions" sheet the mayor circulated making future appropriations to the Mitchell Area Development Corporation (MADC) contingent on measurable performance goals (for example, business recruitment and housing targets). Several council members and MADC representatives said the proposed conditions were unrealistic as binding requirements and risked hamstringing the development corporation’s longstanding activities. MADC representatives said many items on the mayor’s list were already in their workplan and asked for collaboration on measurable reporting instead of hard conditions.
Councilors who supported the idea framed it as accountability for public subsidy, while opponents warned that punitive conditions could disable the local development effort that has helped attract projects such as a senior-living facility and a large soybean processing plant. Several council members proposed continued collaboration — meeting with MADC leadership and city staff to agree measurable, achievable goals — rather than tying appropriations to immediate, rigid conditions.
In the end the appropriation ordinance was approved in its posted form and did not include the mayor’s proposed mandatory conditions. Council and staff agreed to pursue follow-up meetings to refine measurable goals and reporting timelines.
The compensation resolution (R2025-78) that accompanies the budget was also adopted; staff said wage changes were included in the 2026 budget and some union wages had been set through prior negotiations.
