Winsted City Council Discusses Significant 2026 Budget and Tax Levy Increase
- Meeting Overview:
The recent Winsted City Council meeting centered around the proposed 2026 budget and property tax levy, which includes a 6.99% increase, alongside discussions about insurance renewals and public feedback on property tax hikes. The council’s deliberations highlighted the growing financial demands of maintaining city operations amid rising costs and inflationary pressures.
The council members engaged in a discussion regarding the proposed property tax levy for 2026, which is set to increase by 6.99% from the previous year. The proposed general property tax levy is set to increase by 8.89%, while the debt service levy will see a smaller rise of 0.22%. These figures, which translate to a total levy amount of $2,134,972, were presented against a backdrop of rising costs within the city, including employee-related expenses and maintenance needs. The general fund budget, which covers operational costs, was a focal point, as council members considered the implications of financial decisions made to address current operational needs and future projects.
The property tax breakdown revealed that approximately half of the tax revenue is sourced from residential properties, with commercial properties contributing around 36%. The council also noted that certain debts would be expiring in the coming years, providing some potential relief to the budget in the future. Homeowners with a median home value of $312,580 can expect an annual tax increase of about $149.
The public hearing segment of the meeting provided a platform for residents to express their concerns over the proposed tax increases. Milo Durban, a hanger owner at the local airport, raised issues regarding his property taxes, which he noted had risen disproportionately compared to the assessed value of his hanger. Durban expressed frustration over the financial burden, particularly as a semi-retired individual on a fixed income, and suggested that the council consider reducing building permit costs to encourage new hanger construction and boost revenue.
Council members acknowledged the concerns raised by Durban, recognizing the broader issue of rising property values and taxes that are affecting many residents across the city. The council’s response highlighted the challenging balance they must strike between generating necessary revenue and addressing the financial pressures faced by local taxpayers.
In addition to tax-related discussions, the meeting featured several other significant agenda items. The council approved a business subsidy agreement that involved a $25,000 payment to Mr. George Maguire, as part of conditions outlined in a promissory note and mortgage related to a property on First Street North. This agreement, part of the consent agenda, passed without further discussion, alongside several other routine items, including the renewal of the city’s property and casualty insurance contracts for 2026.
The meeting also marked the introduction of Holly Craft, a planning consultant from Municipal Development Group, who will be the point of contact for planning and zoning matters, succeeding John Anderson. Craft shared her background in planning and economic development, expressing her eagerness to engage with the city and continue her work in securing grants and advancing municipal projects.
Public comment during the meeting wasn’t limited to grievances. Glenn Wyel offered positive feedback, expressing gratitude for the completion of a sidewalk project on North First Street, highlighting the appreciation of residents for the staff’s efforts.
Jeff Albers
City Council Officials:
Jesse Cafferty, Tim Fury, Matt Wroge, Tom Ollig, Neil Schlagel (City Administrator)
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Meeting Type:
City Council
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Committee:
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Meeting Date:
12/02/2025
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Recording Published:
03/03/2026
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Duration:
38 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Mcleod County
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Towns:
Winsted
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