Kasson City council opens budget hearing, pauses to give residents more time after county tax-notice error

Mayor opened a public hearing on the proposed 2026 budget and recessed it until next Wednesday after staff said many residents had only just received tax statements that bore an incorrect date.

City Administrator presented the ClearGov overview, saying the administration trimmed an initial levy increase projection from about 7.8% down toward roughly 6.4% by reducing department costs and adjusting healthcare projections. The administrator also emphasized that roughly 55% of the general fund is supported by property taxes and outlined where the city’s expenditures are concentrated, particularly police and fire services.

Why it matters: Councilmembers debated whether to return a modest portion of this year’s excess to taxpayers or preserve reserves for capital projects. One councilmember proposed returning $60,000–$75,000 by reducing next year’s levy, arguing that underspending in some departments (the police had underspent by about $345,000 as of November) makes a modest rebate feasible. Other members pushed back, noting major equipment and infrastructure needs and projections showing the stabilization fund could drop from about $2.1 million to under $500,000 by 2027 depending on project choices.

The budget discussion focused heavily on trade-offs in public safety funding. Councilmembers and staff debated whether to keep two vacant police positions funded (which leaders said should reduce overtime) or to accept ongoing overtime costs. Staff reported year-to-date overtime near $68,000 and noted that filling vacancies could allow a reduction in overtime budgeting, while also cautioning that recruiting remains a statewide challenge.

On the public-notice issue, City Administrator told the council that “the county put the wrong date on the notices,” and that staff had included the county’s corrective letter in the packet. Because many residents received corrected paperwork only recently, Mayor said the council would recess the public hearing to allow more time for public review and comment.

What’s next: Staff will prepare options showing budget impacts for alternative overtime and levy scenarios and retrofit the financial projections to reflect any council direction; the council will reconvene the public hearing next Wednesday to continue the budget hearing and consider an updated resolution.

Quotes

“I would propose something like $60,000, $75,000 maybe, and that would just be a straight reduction of the levy,” said the councilmember who advanced the idea of returning a modest amount to taxpayers.

“The county put the wrong date on the notices,” City Administrator said, noting an apology letter from county staff was included in the council packet.

Closing

The hearing was recessed to allow more residents to review corrected tax statements and provide comment when the hearing resumes next Wednesday.