Pine Island council adopts 2026 budget and 4.25% levy, approves fee schedule, park equipment and mural contracts

PINE ISLAND, Minn. —6 Dec. 16, 2025 —6 The Pine Island City Council on Dec. 16 adopted the city'9s final 2026 budget and levy, approved the 2026 fee schedule and moved forward on several municipal projects including a community mural and Collins Park playground equipment.

City staff presented the truth-and-taxation overview and explained the difference between the levy (the city'9s tax take) and the budget (the spending plan). The staff presentation outlined the city'9s fund structure and explained that the proposed 2026 budget totals $4,218,893, a 4.25% change from the prior year ($171,835 increase). The presenter said the change reflects a larger-than-expected increase in health and dental insurance, a wage-study implementation, a rise in the county sheriff'9s contract and ambulance-per-capita costs among other line items.

"So for passing a budget and a levy, there are two requirements," the presenter told the council, and reviewed deadlines and the county'9s schedule for tax statements and public hearings. The presenter also gave examples of what the citizen-level impact would look like for a $200,000 residential property, estimating a modest per-household change in the city portion of property taxes.

Council then voted to adopt the final budget (Resolution 2556) and the final levy (Resolution 2557) for collection in 2026. The council also approved Resolution 2558 to adopt the 2026 fee schedule, which staff said reflected modest building-inspector fee adjustments and a planned annual utility-rate increase.

Separately, the council approved a $14,000 contract with artist Greg Preslica (Big Picture) to commission a community mural funded by a $10,000 small-town grant plus $5,750 in community donations. Installation and possible lift rental were estimated separately at $1,000 to $2,000; staff said public works might perform installation to reduce cost.

On parks business, staff presented two surfacing options for a new playground at Collins Park: wood chips ($135,683 including equipment) or poured rubber surfacing ($285,250). Staff recommended funding the additional cost from the city'9s unrestricted fund (balance reported around $765,000), which would not affect the levy. Council discussed accessibility and flood resilience and moved to approve the Collins Park equipment purchase and to allocate surfacing funds from the non-levy unrestricted fund.

Other routine items included approval of a liquor license application, and staff reports from the library noting Winterfest and an upcoming book sale.

What happens next: staff will finalize the budget documents for the county's tax statements and implement the approved fee and utility rate adjustments beginning Jan. 1, 2026. The mural contract proceeds to a committee meeting to review design options, and park installation will be scheduled with the approved funding source.

Votes recorded: Resolutions 2556 (final budget), 2557 (final levy) and 2558 (fee schedule) were moved, seconded and adopted by roll call. The mural contract and the Collins Park equipment quote were approved as presented.