Star City Council approves $25.25 million FY2027 budget, cites police staffing and impact fees

The Star City Council approved its fiscal year 2027 budget and appropriations ordinance Tuesday evening, adopting a package that officials said balances growth-driven revenues with new public-safety investments.

Mayor Chadwick presented the budget in a public hearing, telling the council and a small audience the city plans to levy property taxes of about $2,388,564 and projects roughly $25 million in total revenue next year. "We publish it, and the state law requires us to make the publish. And once you publish it... you're stuck with that number unless it goes down," the mayor said during the presentation.

The presentation laid out revenue sources the city calls "reliable income," including property taxes, state revenue sharing and franchise fees, and emphasized the role of impact fees as pass-through funding for road and park projects. The mayor said the city is assuming about 750 building permits next year and highlighted a tiered impact-fee schedule for new development.

Councilman Nielsen moved to approve the budget as presented and Councilwoman Somnelson seconded. The motion passed on roll call: Day — Aye; Wheelock — Aye; Somnelson — Aye; Nielsen — Aye. At the vote the mayor announced the motion carried and the budget was adopted.

Why it matters: Council discussion centered on sustaining police staffing while keeping the city's levy rate low through continued growth. Officials said most park construction will be paid with impact fees rather than property taxes, and staff cautioned that published budget figures can only be reduced during this hearing period.

Looking ahead: The council also adopted a resolution to recover 1% of previously foregone property-tax capacity and passed an annual appropriation ordinance to finalize spending authority for the fiscal year beginning Oct. 1, 2026.