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Thief River Falls council adopts preliminary 2026 budget, posts proposed 21.8% levy increase for public notice
Summary
The City Council approved a preliminary 2026 budget and adopted a proposed levy for public notice that staff said represents a ~21.82% increase in levy capacity and an estimated ~9.81% increase in the tax rate; councilmembers emphasized the figures are preliminary and may be reduced before final adoption.
The Thief River Falls City Council on Monday adopted a preliminary 2026 city budget and approved a proposed property tax levy for public notice, actions city staff said are necessary to meet publishing and county-auditor deadlines.
City Administrator Angie presented the proposed budget and fund-level details, saying total city revenues across funds are $41,409,820 and total expenses are $42,131,021, for a fund-balance draw (reserve use) of $721,201. She also walked the council through individual funds, including electric, water, wastewater, liquor and debt-service numbers.
Angie also described the proposed levy for collectible 2026, which staff presented as a total levy in the mid-$4.7 million range and characterized the levy-capacity increase at about 21.82 percent; staff estimated that would translate to roughly a 9.813 percent increase in the city’s tax rate. Angie announced the required Truth-in-Taxation hearing is scheduled for Dec. 2, with final budget and levy adoption planned for the Dec. 16 council meeting.
Council members pressed for clarity about particular line items. One councilor raised the liquor dispensary figures and asked why the budgeted number appeared negative; Angie said the bookkeeping follows prior-year practice and that transfers are adjusted so that if the liquor fund ends the year negative the transfer would not be taken.
During discussion, members emphasized the preliminary nature of the numbers and the need for continued scrutiny. As one councilor put it during debate, ‘‘I mean, anything that in my opinion that is more than 1% increase should be really scrutinized and looked at again.’’
After discussion the council moved and approved adoption of the preliminary 2026 budget for purposes of continuing the process and moved separately to adopt the proposed levy for publication and public notice; both motions passed on voice votes. The council recorded the levy action as a preliminary step and noted it may lower the levy before final adoption.
Next steps: the city will publish notice for the Truth-in-Taxation hearing on Dec. 2 and return to the council for final action on Dec. 16 so the county auditor can be given final levy information by year-end.
