Emily City Council adopts 2026 budget, sets 5% tax levy and approves revised CIP

Mayor Tracy Jones presided over a Dec. 22 special meeting of the Emily City Council where members adopted the city's 2026 final budget and set a 5% increase in the city tax levy. Mayor Tracy Jones moved to adopt Resolution 25-54 setting the 2026 final tax levy at $1,517,933.28; Councilmember Andrew Hemphill seconded, and the measure passed on a unanimous roll-call vote.

The council adopted the revised 2026 Final Budget for the 100 General Fund at $1,995,894.03 and for the 602 Sewer Fund at $211,254.25 after making small expenditure reductions totaling $3,444.45 to meet the levy target. Councilmember Gregory Koch and other members participated in the motions and roll-call votes approving the budgets.

The meeting included a detailed review of the proposed 2026 property tax levy values provided by Crow Wing County. Staff noted the council used a 5% levy target and that, under the county's proposed values, property taxes could decrease for levy increases of up to 9 percent.

Council and staff also revised the city's 2026'2030 Capital Improvement Plan (CIP) to reflect grant timing and delayed purchases. Clerk/Treasurer Cari Johnson reported several items were shifted into 2026 pending grant awards: the City Hall generator ($65,000) was postponed because it must be included in the county hazard mitigation plan before a FEMA grant application; the Sourcewell Community Impact Funds and Boost funds purchases (including a Deputy Clerk computer, $1,952.90) were moved to 2026; a gymnasium security camera ($500) will be installed in January 2026; Sourcewell grant pursuit for a gym floor replacement was estimated at $32,500 to $65,000; and a DNR Volunteer Fire Assistance grant application (purchase listed at $4,921.66) was submitted with a decision expected in March. The council also budgeted $4,000 from cemetery savings for permanent visible cemetery block markers in 2026. Council members emphasized that purchases tied to grant applications will not proceed unless grant funds are received.

The council reviewed long-term debt and recommended levy additions to cover debt service: Fund 303 (City Hall CIP) $49,848.75; Fund 304 (2014 Road Improvement) $29,000 (Ehlers'recommended $19,179.61); and Fund 602 (sewer refunding) $111,397.25 (this includes budgeted sewer maintenance of $45,000 and $30,000 for influent control structure replacement; Ehlers'recommended $61,452.38). Members noted the lease to purchase Engine 1 was paid off in 2025, SCBA equipment lease is to be paid off in 2026, and the 2026 lease payment for Engine 2 is $79,564.96 under the structured payment schedule.

Councilmembers also adopted a series of year-end and budget-correction resolutions earlier in the meeting (Resolutions 25-51, 25-52 and 25-53) and approved several smaller operational purchases that were budgeted for 2026.

Votes at a glance: - Purchase Kenwood radio from Brandon Communications for $2,562.83 (mover: Councilmember Gregory Koch; second: Councilmember Andrew Hemphill): unanimous approval (Jones, Brennan, Hanson, Hemphill, Koch voted aye). - Appointment of Krista Kommer to Executive Review Board, EMS member, term Dec. 23, 2025'Dec. 31, 2027 (mover: Councilmember Andrew Hemphill; second: Councilmember Gregory Koch): passed (Brennan, Hanson, Hemphill, Koch voted aye; Mayor Jones voted nay). - Resolution 25-51 (amended) revising the 2025 adopted budget (mover: Councilmember Gregory Koch; second: Mayor Tracy Jones): unanimous approval. - Resolution 25-52 (year-end transfers) (mover: Councilmember Gregory Koch; second: Mayor Tracy Jones): unanimous approval. - Resolution 25-53 (budgeted year-end transfers) (mover: Councilmember Gregory Koch; second: Councilmember Andrew Hemphill): unanimous approval. - Resolution 25-54 adopting the 2026 final city tax levy at $1,517,933.28 (mover: Mayor Tracy Jones; second: Councilmember Andrew Hemphill): unanimous approval. - Adoption of the 2026 Final Budget for the 100 General Fund at $1,995,894.03 and the 602 Sewer Fund at $211,254.25 (mover: Mayor Tracy Jones; second: Councilmember Gregory Koch): unanimous approval. - Approval of the 2026'2030 CIP Projects by Funding Source spreadsheet as revised (mover: Mayor Tracy Jones; second: Councilmember Andrew Hemphill): unanimous approval.

Why it matters: The council's votes set the city's spending and tax levy levels for 2026, established which capital purchases will be pursued this year versus delayed pending grant awards, and defined planned levy contributions to cover bond and sewer-related debt service. Several capital items remain contingent on outside grant approvals, which will determine whether the city proceeds with purchases such as the generator and gym floor replacement.

The meeting was adjourned at 2:45 p.m.