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Council weighs 2026 levy scenarios, reserves and planned Simplot land purchase
Summary
Staff presented levy scenarios (6%, 10%, 12%), reserve estimates, and an estimated $1.547 million Simplot property acquisition; council discussed trimming planned expenses and confirmed the Dec. 2 truth‑in‑taxation hearing and a possible Dec. 16 final budget vote.
East Grand Forks — City staff presented updated budget briefs and levy options Tuesday, showing a range of possible outcomes for 2026 and flagging a multistep schedule for final action.
“...as we stand today, this is kind of our best snapshot of what the budget looks like,” Reed Hutton told the council as staff walked through revised revenue and expense projections.
Staff said a 6% levy would increase the city’s property tax levy by $428,278 but still leave a shortfall of about $577,821 in the proposed 2026 budget. The council’s 2024 audited general‑fund reserves were reported just over $8 million; assuming certain planned expenditures and the projected shortfall, staff estimated reserves could start 2026 in the roughly $6 million range.
Council members discussed a planned Simplot property acquisition staff listed at approximately $1.547 million and noted that acquiring the land as a city hold‑and‑flip for development would draw from reserves until the parcel is sold or developed. Staff also presented alternative levy examples (10% and the preliminary 12%), and a comparison showing the effect on a set of sample properties.
Councilors and staff discussed opportunities to pare the city’s planned expenses (staff referenced a $14.736 million figure in the packet) and identified timing and employee‑cost uncertainties — notably wages and health insurance negotiations — that could affect final numbers. Department heads have already trimmed some capital and vehicle purchases to reduce the deficit, staff said.
City officials reminded the public that the statutory truth‑in‑taxation hearing is scheduled for Dec. 2 at 6:00 p.m.; staff said a final budget would come back for council approval at the earliest on Dec. 16, with Dec. 30 as the statutory deadline to adopt a final budget.
No final levy decision was made Tuesday; staff will continue refining assumptions and asked council members to submit suggestions for expense reductions ahead of upcoming budget meetings.
