Paynesville council adopts 2026 budget and $1.58 million levy after truth-and-taxation hearing

The Paynesville City Council adopted its 2026 budget and tax levy after a public truth-and-taxation hearing on Dec. 1, approving a total levy of $1,577,729 that includes the general fund, abatements and debt-service levies.

Belinda, who presented the levy and budget, said the proposed general fund levy is $1,266,770 and that total levy figures reflect bond payments and abatements. "Property taxes are the lion's share," she said, noting property taxes comprise roughly 38.6% of projected revenues and local government aid about 26.4%.

The council and staff highlighted the main budget drivers as personnel costs (salaries and benefits), higher legal fees tied to outside counsel, and transfers for capital needs such as a new fire truck. Council members also pointed to higher property valuations as the primary reason many residents will see larger bills. "If you have a $200,000 home, the tax impact for the city at this budget, as we sit, is about $19 a year," Belinda said in response to a taxpayer question about valuation and tax changes.

During the hearing, resident Joe Kramer said his taxes rose about 23.8% because his home's assessed value increased. Council members reiterated that valuation increases, not a single city policy change, explain much of the tax shift and that the city portion of the levy represents a small portion of total taxpayer bills.

Council discussed several budget allocations before final votes, including transfers to the EDAP economic-development account and increases in planned donations to community groups. Herszburg moved to increase donations to three organizations and to allocate $1,500 for fireworks, with the additional amounts to come from reserves; the motion passed by voice vote.

The council adopted the city budget (Resolution 25-37) on a recorded vote of 4-1 and then approved the levy resolution (Resolution 25-38) by voice vote. The council indicated the levy and budget will be monitored as revenues and state mandates evolve.

The council's next procedural step is standard post-adoption administration: finalizing levy paperwork and continuing budget monitoring during the fiscal year.