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Council advances 2026 budget plan, certifies preliminary levy and approves five-year CIP
Summary
Granite Falls council reviewed and approved a proposed 2026 budget package including a proposed 10% general-fund levy increase, set truth-in-taxation and final-adoption dates for December, and adopted a five-year capital improvement plan and related transfers by voice vote.
The Granite Falls City Council on Monday advanced a preliminary 2026 budget package and set public hearing dates for truth-in-taxation and final adoption in December.
City staff opened the budget discussion by reminding the council it must certify the preliminary levy to county officials by Sept. 30. The administration proposed a 10% increase to the general fund levy — an increase staff described as a precaution that, if approved, would raise roughly $279,284 for the general fund — while noting the council can reduce the levy later but cannot increase it after certification. “We need to certify the proposed levy to both counties by September 30th,” the staff presenter said.
Why it matters: the levy sets the maximum property-tax rate the city can collect next year and frames how much revenue is available for core services and the capital program. Staff also flagged several cost pressures that shaped the proposal, including a health-insurance premium increase discussed during the meeting (noted in the presentation as about 17%). The presenter also outlined grant awards and capital grants recommended for 2026, including roughly $1.5 million from the state for recreation enhancements, a $600,000 small-city streetscape grant for tree replacement along the business corridor, and federal EDA funding (about $2.3 million plus an additional $250,000 for exterior improvements).
After discussion the council voted by voice to: adopt the proposed levy and set truth-in-taxation for Dec. 1 with final budget adoption at the second December meeting; adopt the general fund budget; adopt the 2026 special revenue and enterprise fund budgets (water, sewer, electrical and related enterprise funds); approve interfund transfers; and adopt the five-year capital improvement plan. Each resolution passed without opposition recorded in the voice votes.
Budget details and next steps: staff said the proposed budget includes a designated reserve (about $281,838) and identified that the 10% levy largely reflects salary and health-insurance cost increases. The council may continue to modify the general fund budget through December prior to final adoption. The administration also said some planned capital projects, including streetscape tree replacement and substation work tied to other grant applications, will continue through engineering and public outreach in the coming months.
The council will hold a truth-in-taxation hearing on Dec. 1 and consider final adoption later in December.
