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Council gives notice it may exceed revenue-neutral property tax rate for 2026
Summary
Following committee discussion of capital needs, the council approved resolutions to notify the county of intent to levy a property tax exceeding the revenue-neutral rate for the city and a drainage district, and set a required public hearing for Sept. 17, 2025.
The finance and administration committee recommended two resolutions to provide required notice to the county if the governing body intends to levy a property tax exceeding the revenue-neutral rate for the 2026 budget. Council member Schmidt summarized the proposals, noting the county must receive notice by July 20 and that each resolution sets a public hearing for Sept. 17, 2025.
Schmidt told council the committee discussed an upper-limit mill levy increase option of up to 3.5 mills tied to major capital needs including a possible police and city hall facility and ongoing street maintenance; staff also discussed expanded outreach about rebate programs should the council decide to proceed. After brief council comments about continuing to look for cost savings and revenue options, the council approved both resolutions by roll call. The approved resolutions ensure the county clerk can publish required notices to property owners ahead of the September hearing.
