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Highland council accepts clean audit, approves 2025 tax levy over lone dissent
Summary
The Highland City Council accepted a clean financial audit for the year ending April 30, 2025, approved related budget amendments and adopted the 2025 levy for taxes payable in 2026 despite a single dissent from Councilman Napper, who urged postponement. City officials said enterprise funds were profitable but cautioned the coming fiscal year will show a deficit.
The Highland City Council on Dec. 15 accepted the city's Combined Annual Financial Report for the fiscal year ending April 30, 2025, and approved related budget amendments and the 2025 tax levy for taxes payable in 2026.
Scheffel Boyle principal Mark Korte presented the audit and told the council the firm issued a clean opinion on the city's financial statements. "It is a clean opinion, which is the highest we can give," Korte said, adding that enterprise funds including Light & Power, Water, Sewer and Solid Waste were profitable and that the Fiber-to-the-Premise Fund showed increased revenue.
The nut graf: The council accepted the audit, approved amendments to the FY2025-26 budget and adopted the property tax levy after brief debate about timing and taxpayer impact. City Manager Chris Conrad and council members said certain fixed costs (insurance, pensions) and anticipated deficits make the levy necessary for service budgets; Councilman Napper argued the council should postpone action until it had more time to review the financial report and avoid burdening taxpayers now.
Councilwoman Barbara Bellm moved to accept the audit; Councilman Napper seconded. The motion to accept the Combined Annual Financial Report and a subsequent motion to amend the FY2025-26 budget (Ordinance #3420) carried on unanimous roll calls. The council also approved the 2025 Treasurer's Report and Expenditures Report #1304 during the same session.
On the levy (Bill #25-142), Councilman Napper asked to table and said, "I do not think we need to gouge taxpayers when we just had a very good financial report." City Manager Chris Conrad replied the levy must be filed before year-end with the county and warned that next year's budget is expected to show a deficit. The council voted: Councilmembers Klaus, Sloan and Bellm aye; Councilman Napper nay. The motion carried.
Council members and staff repeatedly framed property taxes as supporting essential services, noting that a large portion of EMS and nearly half of the police department budget are funded by property tax. The audit presentation and related votes together set the city's near-term fiscal direction; council members said they will use audit and budget documents to guide decisions in 2026.
What comes next: the levy will be filed with Madison County before the end of the year; staff signaled budget work for the next fiscal year will continue given projected shortfalls.
