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Gaylord council adopts 8.25% property tax levy and 2026 budget
Summary
After a required Truth in Taxation hearing, the Gaylord City Council approved an 8.25% property tax levy increase (about $167,980) and adopted a 2026 general-fund budget that raises operating spending roughly 5.2%. Council discussed debt-service burden, transfers from enterprise funds, and the effects on residents and capital plans.
The Gaylord City Council voted to adopt a property tax levy increase of 8.25% and approved the 2026 general-fund operating budget at its meeting.
City Administrator Steve outlined the Truth in Taxation presentation, saying the hearing is required by state law for cities of the city’s size and that the proposed 8.25% levy represents roughly $167,980 and brings the total levy to about $2.2 million. He warned that debt service makes up roughly 42% of the levy and noted the city plans a $45,000 transfer from the sewer fund to help reduce the amount that would otherwise be raised from taxpayers.
“Property taxes and state aid are our two biggest revenue sources,” Steve said, and the council heard that Local Government Aid reductions over the years have increased pressure on local levies.
Councilors discussed the allocation of levy dollars — including debt service, general government and a $120,000 capital outlay allocation — and how the city is using healthier enterprise and debt service balances to limit the levy. After questions and public hearing procedures, the council adopted Resolution 2025-27 to set the final levy for collection in 2026 and followed with Resolution 2025-28 adopting the 2026 general-fund operating budget.
The council also noted a planned replacement of one police vehicle and continuing elevated costs for the ambulance contract with Ridgeview Medical Center; ambulance costs were described as rising by about $50,000 for next year.
Council members said the city will continue to pursue creative uses of existing funds to avoid larger levies but warned that state aid uncertainty and debt obligations constrain options. The resolutions were approved by motion and recorded as carried.
The council scheduled further budget and rate work sessions and asked staff to provide public-facing explanations of how levy revenues are allocated in the coming weeks.
