Morris council adopts 2026 budget and a 3% tax levy

The Morris City Council on Dec. 9 approved the city’s 2026 budget and set a 3% property tax levy for collection in 2026.

Acting city finance presenter Mel gave an overview of the proposed budget, saying the total city budget is $15,847,410 and that the city is planning a modest 3% levy increase for 2026. Mel noted a mix of grant‑funded capital projects and reserve spending, and told the council that lodging tax receipts total about $319,000 and could fund a proposed $80,000 tourism marketing plan.

"I always like to try to keep a tax levy right around 3%," Mel said, explaining the approach was intended to avoid larger sudden increases while preserving capacity for capital work.

The presentation reviewed major capital items planned for next year, including a grant‑funded bike‑path reconditioning project and sidewalk work along Highway 9, as well as routine street and utility projects. Mel also flagged requirements tied to the water treatment plant that require the city to set aside depreciation to fund future replacement and noted the uncertainty of future Local Government Aid from the state.

Council members asked questions about reserve levels, the impact of possible state aid reductions and how the budget accounts for inflation and one‑time capital spending. Mel and City Manager Blaine Hill said the budget uses reserves for some one‑time items and includes figures reflecting the recent water/sewer rate study.

After discussion, Council member Carell moved to approve the final 2025 levy for collection in 2026; the motion passed on a roll call vote with Carell, Colby, Miller and the mayor recorded as yes. The council then moved to adopt the final 2026 budget and approved it by roll call.

The council’s action sets the spending framework for next year; further details on specific capital contracts and project timelines will return for separate council action as engineering studies and grant awards are finalized.