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East Grand Forks officials preview 2026 budget; staff warn of possible 15% property tax lift
Summary
City staff told the council that a strong 2024 year-end — a $943,000 increase in general fund reserves — gives flexibility, but a preliminary 2026 package as presented would leave roughly an $862,310 gap that could require about a 15% property tax levy increase if fully closed by taxes.
City staff presented a high-level preview of the proposed 2026 budget to the East Grand Forks City Council on an evening meeting, saying the city closed 2024 with a stronger-than-expected reserve and outlining items that drive a projected budget gap.
"Our general fund reserve balance increased by $943,000 to close 2024 year end," Reed told the council during the presentation, citing uncollected back property taxes recovered and lower-than-expected winter operations costs as the primary causes of the improvement.
The presentation reviewed 2025 figures and the preliminary 2026 assumptions. Staff said projected total revenue for 2025 was roughly $13,711,000 and that the 2025 property tax levy was set at a 3% increase; the 1% levy value cited for the current year was $71,379. For 2026, staff included a baseline 3% levy in the draft numbers, an increase REED said would add about $214,139 in revenue.
Why it matters: local property tax levies and state aid heavily affect the city’s options. Reed said 2026 Local Government Aid (LGA) to the city is estimated at $2,468,772 — slightly higher…
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