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After hours of debate, council sets proposed tax-rate ceiling at $0.30; staff had recommended $0.33
Summary
Staff recommended a proposed FY2026 tax rate of 33¢ to balance the budget and fund employee investments. After extended discussion about fund balance, recurring personnel costs and tax relief, council voted 4–3 to set the proposed tax‑rate ceiling at 30¢ for public notice and further workshop review.
City staff presented the FY2026 proposed budget and recommended a proposed tax rate of 33¢ per $100 of assessed value to balance the general fund without using fund balance, fund four new full‑time positions and maintain the 20% homestead and 85% senior/disabled exemptions. Staff noted that one penny equals approximately $492,000 in expenditures and that the city maintains a general‑fund balance of roughly $20 million with a 25% policy target (~$9.5 million).
Council debated whether to preserve fund balance, reduce the rate for tax relief, or require budget cuts to accommodate a lower rate. Mayor Ben pressed for tax relief and suggested using fund balance to lower the rate; staff and the city attorney cautioned that recurring program costs would require recurring revenue or offsetting cuts. After debate, Mayor Ben moved to reduce the tax‑rate ceiling from 32¢ to 30¢ for the purpose of public notice and council direction; the motion passed 4–3. Councilmembers asked staff to produce budget scenarios and supporting detail at the August 12 workshop and the August 26 public hearing before final adoption on Sept. 2.
