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Corcoran staff ask council for guidance as proposed 2026 levy rises 30.11%
Summary
City staff presented the draft 2026 budget and explained a 30.11% proposed levy increase, reviewed appraisal-driven tax changes, a one-time effort to address a 2016A bond accounting deficit, and options to trim costs before Truth in Taxation.
City staff told the Corcoran City Council that the preliminary 2026 levy under consideration represents a 30.11% increase and asked the council for clear direction on service levels ahead of the Truth in Taxation hearing.
Staff emphasized the distinction between the levy and residents’ overall property tax bills: they said roughly 91% of residents will see less than a 15% change in their overall tax bill, though a smaller share (about 3.6%, or roughly 75 households) could see increases of 20% or more depending on school districts and other taxing authorities. Staff cited county appraisal work that produced an average 5.8% increase in assessed values for Corcoran and legislative reductions in the market-value exclusion that have changed taxpayers’ exclusions.
The budget materials listed a draft cost to deliver requested services of $11,917,361. Staff said part of the proposed levy increase would address a legacy issue tied to the city’s 2016A bonds: bond documents forecasted special assessments that were not collected, leaving a carried deficit that auditors later questioned; staff said resolving that deficit in 2026 would be costly but likely a one-time correction. Council asked staff to explore alternatives, including reserve use and adjustments to interest-earning strategies, and to provide more detail on timing.
Councilmembers proposed potential offsets: trimming projected professional services in Community Development, maximizing interest income on pooled funds, moving some cadet/staffing costs temporarily to long-term planning dollars (tied to an ICPOET grant that covers education costs), and revisiting fee schedules. Staff noted expected increases in legal fees tied to labor negotiations and certain lawsuits, including a forecasted LMCIT/Housing First bill expected to resolve in April.
Staff asked council to tell them which services to stop if they wanted a smaller levy; council members pressed for clearer communication to residents about how the levy translates into overall property-tax impacts and asked that staff return at the next meeting with tighter options and the county assessor available to explain appraisal timing.
