Royal City council hears recommendation to raise 2026 property tax levy by 1%

At a public hearing during its Oct. 7 meeting, Finance Director Janice Flynn recommended that the City of Royal City increase the 2026 property tax levy by the maximum one percent allowed under state law. Flynn told the council that sales tax revenue has been declining and noted ongoing reimbursements from the Royal School District, the Gorge for police services and the Cemetery District for Public Works services.

Flynn also reported that the city has received approval for a loan for Well No. 5 and has applied for a loan for planning wastewater facility improvements. She suggested the Police Department investigate current state funding and consider whether a police-specific tax might be available to offset public safety costs. Mayor Michael Christensen opened the hearing and closed it at 7:48 p.m. after there were no public comments against the proposal.

Why it matters: the levy recommendation will affect property tax collections in 2026 and is a primary local revenue decision the council must finalize as it prepares the budget. Flynn’s presentation noted competing pressures — falling sales tax receipts and capital needs for water and wastewater systems — that the council must weigh before adopting final levy and budget numbers.

Next steps: Council discussion on the 2026 budget and a formal adoption of the levy will follow in subsequent meetings.