International Falls presents $4.98 million preliminary 2026 levy; residents push back over wage increases and valuation-driven spikes

CITY OF INTERNATIONAL FALLS, Minn. — City finance officer Emma Rudd told residents at a Dec. 1 Truth in Taxation public hearing that the City of International Falls' preliminary 2026 tax levy is $4,978,484 and the packet before the council reflects that figure as the worst-case scenario the city must present under state law.

Rudd said the levy is allocated across six municipal funds, with the general government fund accounting for roughly 51% of levy-supported spending. "After the adoption of a 2026 preliminary levy, the levy can be lowered, but it cannot be, increased," she said, describing the statutory timeline that requires a preliminary levy in September and a final levy certified in December.

Why it matters: Rudd told the public the preliminary levy reflects several priorities identified during budget work sessions: maintaining public safety and emergency services; finding a long-term solution for the ambulance service deficit; replenishing general fund reserves; and pursuing sustainable budgeting. She said inflation, rising employee wages and benefits, higher workers' compensation premiums, and a state-mandated paid-leave program also contributed to higher costs.

Key figures and adjustments: Rudd presented revenue and expenditure totals, saying 59% of the general fund is supported by local government aid (LGA) and that the city budgeted $4,948,240 in LGA for 2026. She said property taxes make up about 30% of general fund revenue and that the $4,978,484 levy represents a 20% increase over 2025 levy figures as presented in September. Rudd noted the preliminary levy contains a dedicated ambulance levy; that ambulance allocation was originally listed at $414,873 (about 10% of the preliminary increase) but was later reduced in committee-level changes to $207,437, and the proposed reserve replenishment was reduced from $1,000,000 to $800,000.

Presentation details and packet discrepancies: Rudd walked through a sample parcel in the notice mailed to property owners to illustrate how valuation changes and multiple jurisdiction levies (city, county, school district) combine to produce the final tax bill. The presentation included operating-budget line items; a number in the transcript appears garbled (an administrative operating figure displayed as $1,000,101,106,046). Public commenters and packet references suggest the intended administrative operating total is $1,106,046; the council and staff indicated they continue to refine figures ahead of final certification.

Public reaction at the hearing: Residents repeatedly pushed back on wage increases for salaried administrative staff while taxes rise. Eric Nielsen asked which employees would receive raises and whether administrative costs were charged centrally or to individual departments. Rudd said union wages follow existing contracts and that a 3% salary increase for salaried (non-union) staff had been discussed in budget meetings and was estimated at roughly $34,000.

Several residents questioned the size and fairness of the levy. "I'm curious which employees'... who's getting an increase for employee rate wages," said Eric Nielsen. Nancy Imhoff said she opposed raises in the context of rising taxes; Rhonda Benedix told the council she and others were "disgusted" by repeated tax increases. Scott Garock said his property tax bill rose about 41% and asked why Department of Revenue averages (8.7% for cities) differ from individual experiences; the mayor and staff replied that parcel-level changes reflect valuation, classifications and other jurisdictional levies that the county assesses and collects.

Other budget details: Rudd identified partnership and non-levy funding in the packet, including $32,000 to Borderland Humane Society and an approximately $115,500 airport appropriation (later removed in proposed adjustments). She also noted about $9,600 in franchise-fee support for KCCTV and a $20,000 non-levy contribution to the local historical museum.

What comes next: Rudd and the mayor said the council and staff are holding multiple budget meetings and expect to continue refining the levy before the council's planned certification at the Dec. 15 regular meeting. "We meet again tomorrow at 10 a.m.," the mayor said; Rudd asked residents to stay tuned as committee discussions continue.

Attribution: Direct quotes and numbers in this article are taken from the City of International Falls Truth in Taxation hearing presentation by city finance officer Emma Rudd and public comments recorded at the Dec. 1 hearing.

Ending: The public hearing closed with no further comments and the mayor adjourned the meeting; council deliberations and a final vote on the 2026 levy are scheduled before certification on Dec. 15.