Marshall holds Truth in Taxation hearing as staff proposes trimming preliminary 7.5% levy to 6.59%

The Marshall City Council opened the Truth in Taxation public meeting to present the proposed 2026 budget and levy and to receive public input.

City Administrator Sharon Hansen thanked finance staff and introduced EJ Moberg, Director of Administrative Services, who reviewed the budget materials included in the council packet. Moberg said notices in the community reflected a preliminary levy increase of 7.5% (total levy approximately $10,600,000), but staff had worked to reduce that level and planned to propose a 6.59% levy for final adoption at the council’s next regular meeting. Moberg walked through a fund-by-fund breakdown from the preliminary notice, saying the preliminary levy included roughly $7.3 million for the general fund, $500,000 for a capital equipment levy, $400,000 for street improvements, $151,000 for the EDA fund and just under $2.3 million for debt service.

Moberg told the council that personnel-related costs — wages, benefits and notably an 11% increase in health insurance — are the biggest budget drivers. Staff said they plan to use about $68,000 of reserves in 2026 to lower levy impacts, including use of reserves for public safety personnel costs and a UCAP bus request. Moberg also reviewed local government aid history and said the city’s final levy and budget will be adopted at the council’s Dec. 16 meeting at 5:30 p.m.

During the public-comment portion, resident Ron criticized the budget process and urged stricter controls and smaller increases; he suggested reviewing small recurring expenses (for example, municipal vehicles assigned to departments) to find possible savings. Council thanked the commenter and reiterated that staff will keep working on budget adjustments ahead of final adoption.