Residents and business owners protest proposed 19.36% levy at Truth‑in‑Taxation hearing in Thief River Falls

Thief River Falls — The city presented a proposed 2026 tax levy increase of 19.36% during a Truth‑in‑Taxation hearing that drew more than a dozen public speakers who said the increase — combined with recent assessor revaluations — is unsustainable for commercial property owners and renters.

City staff explained the levy and tax-rate calculation and gave examples. Using the city’s proposed rate of 62.111, staff showed that the city portion of a $200,000 residential property would be about $1,077.62; under the previously used proposed rate of 63.389 the city portion would have been about $1,099.80. Staff said the proposed levy reflects changes in the general fund ($548,522 increase) and an increase in bonded debt ($208,363), and that final adoption is scheduled for Dec. 16, 2025.

“An increase is still pretty darn high,” said Jim Dagg, a commercial property owner who organized several other local business owners and tenants to speak. Dagg said his building’s combined property tax increase for 2026 will be roughly $2,300 and warned landlords will likely pass costs on to renters.

Tenants who spoke said higher property taxes could push monthly rents beyond what some residents can afford. “With this big of increase … that’s going to raise my rent up to over $100,” said a tenant who identified herself as Karen, explaining she holds two jobs and would struggle to pay any significant rent increase.

Business owners and residents pressed the council for specifics about what services or projects would account for large tax increases. Scott Fricki of Fricki Properties told the council to make hard budget choices and identify large cost drivers rather than rely on repeated levy increases.

Council members and staff noted several constraints. The chair clarified the city does not set individual property market values — the county assessor does — and staff said the preliminary statements the council used for public examples were based on early county figures and could be updated. City staff also reminded the public that some components of the levy increase stem from mandated or contractually fixed costs such as bonded debt and health insurance.

Council members acknowledged the concerns and said they would continue to review budget reductions and coordinate with regional partners to seek changes in state funding formulas. The council will vote to adopt the final levy and budget on Dec. 16, 2025.

The hearing included extended public comment and no immediate vote on the levy; the meeting moved on to other agenda items after the public forum closed.