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Long Prairie council reviews preliminary 2026 budget and flags possible levy increase
Summary
City staff told the Long Prairie City Council that a proposed preliminary 2026 budget may require a property tax levy increase, driven by union negotiations, rising insurance and workers’ compensation costs, staffing changes and street repairs; staff also warned Local Government Aid (LGA) is unlikely to rise as much as expected.
Long Prairie, Minn. — The Long Prairie City Council reviewed the proposed preliminary 2026 budget at a work session on Sept. 10, where city staff warned that a property tax levy increase may be needed to close projected shortfalls.
City staff presented the budget framework and explained how property taxes are calculated, identifying several cost drivers that could push the levy higher: ongoing labor negotiations with unions, rising workers’ compensation rates, increasing health insurance premiums, staffing changes and planned street repairs. Staff also warned that Local Government Aid (LGA), a major revenue source for the city, likely will not increase as much as previously anticipated, which would reduce available revenues.
The presentation included department-level requests and a review of several imminent facility maintenance needs that staff said should be addressed soon. Staff emphasized the city is preparing for the possibility of reductions in state and federal funding and is factoring that uncertainty into the preliminary plan.
The council did not vote on any budget adoption at the session. Council Member Lilah Gripne moved to approve the meeting agenda at the start of the session; Mayor Jim Kreemer seconded. After discussion, the council adjourned at 12:36 p.m. following a motion from Gripne that Council Member JoAnn Schroeder seconded; the motion was recorded as unanimously carried.
Next steps: staff will continue refining the preliminary budget, and the council will consider formal levy and budget actions during subsequent meetings and the formal budget adoption process later this year.
