Council sets Dec. 9 hearing and certifies preliminary 2026 levy amid rising costs

Finance Director Cassie Gemuenden told the council that state statute requires a public meeting to discuss the 2026 budget and taxes-payable levy and that the proposed levy must be certified to the County Auditor by Sept. 30, 2025. The council set Dec. 9, 2025 as the hearing date and approved two resolutions: Resolution 25-09-01 to set the public hearing and Resolution 25-09-02 to establish the proposed 2026 levy certification for Chisago City.

Gemuenden summarized budget drivers, saying the preliminary net tax capacity increased 5.04% and that the proposed 2026 general fund levy rose 16.40%. She attributed the increase to a 9.3% increase in the Lakes Area Police budget, a 12.7% increase in health insurance premiums, higher League of Minnesota Cities insurance costs (3–10%), a union contract wage and benefit increase, increased contracted mowing expenses, a 3.75% cost-of-living adjustment and the new Paid Family Medical Leave requirement effective Jan. 1, 2026. She cited a $532,059 increase in general fund operating expenses and reported the proposed overall tax rate for Chisago City would decrease 2.71% because of redistributed Local Government Aid used to offset levy increases.

Mayor Jeremy Dresel said, "we are trying to hold down the tax rate, and that is why we are using some of the LGA dollars to help offset the general fund increase." The council approved both resolutions at the meeting.