Thief River Falls council adopts 2026 budget, certifies $4.67 million tax levy and approves a slate of measures

The Thief River Falls City Council on a voice vote adopted the city’s final 2026 budget and certified a $4,666,302 tax levy, a 19.36% increase from 2025, during its December meeting.

City staff presented the budget summary, showing general fund revenue of $11,797,766 and expenses of $11,811,766 (a planned use of reserves of $14,000). The presentation included detailed fund figures for liquor, electric, water and wastewater utilities. City Administrator Angie Philip (presented in the packet) answered council questions about how fund balances and scheduled bond payments factor into those numbers.

Why it matters: The certified levy and budget establish the city’s revenue and spending plan for 2026 and will be forwarded to the Pennington County auditor. Council members repeatedly described the year as “painful” for budgeting because of rising costs and new debt service; the mayoral chair said the outcome means the council must “do some serious work in 2026” to address structural pressures.

Council also approved several related financial and administrative measures in the same session. The council authorized calling and redeeming outstanding Electric Revenue Bonds (Series 2018A) to pay them off early — staff and council discussed a projected interest‑savings benefit and the near‑term effect on reserves — and adopted a resolution setting new electric rates for 2026–2029, effective Feb. 1, 2026. The meeting included motions to process year‑end accounts payable on Dec. 31, 2025; to approve write‑offs of uncollectible utility accounts totaling $80,990.44; and to certify unpaid grass/weed charges to property tax rolls for collection in 2026.

Votes at a glance (as recorded in the meeting): - Adopt final 2026 budget (motion passed; vote tallies not specified) - Certify 2026 tax levy at $4,666,302 (motion passed; vote tallies not specified) - Approve call/redemption of 2018A electric revenue bonds (motion passed; vote tallies not specified) - Adopt electric rate resolution for 2026–2029 (motion passed; vote tallies not specified) - Authorize year‑end accounts payable processing for 12/31/2025 (motion passed; vote tallies not specified) - Approve utility write‑offs totaling $80,990.44 (motion passed; vote tallies not specified) - Certify unpaid grass/weed charges for 2026 property taxes (motion passed; vote tallies not specified)

Council members urged continued scrutiny of fees and maintenance (one council member called for closer management of the municipal liquor store roof repairs and other deferred maintenance). Staff emphasized that certain fund uses reflect scheduled debt and one‑time timing differences rather than permanent revenue shortfalls.

What’s next: The certified levy will be delivered to the county auditor; staff and council said they plan to continue budget‑fine‑tuning and consider approaches to stabilize reserve positions and long‑term rate impacts. The council adjourned at the scheduled close of the meeting.