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Kasson council previews 2026 budget as healthcare and paid-leave costs rise
Summary
City staff told council that the largest drivers in the preliminary 2026 budget are rising healthcare costs and the new Minnesota paid-leave payroll tax; staff proposed conservative estimates and encouraged member feedback before the levy-setting deadline.
City staff presented the 2026 preliminary budget and a ClearGov packet, telling council the two biggest near-term cost pressures are employee healthcare rates and a new Minnesota paid-leave payroll tax.
Staff explained they raised the conservative healthcare inflation assumption from 10% to 20% in the draft based on preliminary rate guidance and historical experience; last year’s healthcare increase had been about 12%. The…
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