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Council debates 2027 supplemental budget as staff urges 5.59% levy adjustment and possible credit‑card convenience fee
Summary
City staff presented a recommended 2027 supplemental budget that includes a proposed 5.59% increase in the tax levy and asked council to consider a convenience (credit‑card) fee to avoid absorbing processing costs across levy payers; council asked for more data and wider public engagement before approving new levy measures.
City administration presented the 2027 recommended supplemental budget and outlined decision packages that together produce a recommended tax‑levy increase of about 5.59% year over year. Administration reported a recommended levy figure of $124,901,338 and identified decision packages (including public‑safety staffing, ERP project continuation and contingency, and enterprise fund adjustments) that together account for the requested increase.
Administrator Zelms summarized options to cover costs without increasing the levy, including passing a convenience fee onto credit‑card users. "If we don't increase the levy‑funded accounts for those charges, then the main impacts are going to be building inspection services, municipal recreation, the city clerk, parking ticket collections... they will not have the budget that you've approved," Zelms said, urging council to consider either a fee or a small levy adjustment.
Council members expressed a mix of support and caution. Mayor Norton warned about shifting costs to residents who increasingly pay by card: "Are we wanting people to write checks instead? ... we're asking constituents to pay a fee to cover the cost of their credit card." Council member Miller said he would like a dashboard showing levy support by program and suggested more study on subsidy per user in municipal recreation before committing to new levy policy.
Staff noted vendor limits on pass‑through fees (one vendor said it will only allow a 3% pass‑through even though state law permits up to 5%), and that passing only 3% would still leave the city absorbing a portion of transaction costs. Staff recommended more study and additional outreach; key calendar milestones include study sessions in August, a preliminary‑levy approval scheduled for Sept. 21, and the final budget hearing and adoption scheduled for Dec. 7.
Council gave staff direction to return with more detail and did not take a final vote on levy changes or a convenience‑fee policy during this meeting.
