The focal point of the meeting was the truth and taxation public hearing, where the proposed budget for 2026 and corresponding property tax levy were discussed in detail. City Manager Rodriguez and Budget Cash and Debt Manager Steve McDaniel presented the budget, which included a proposed property tax levy of $31,749,380 for 2026, representing a 6.16% increase from the previous year. McDaniel detailed that when combined with the Housing Rehabilitation Authority levy, the effective increase would be 6.08%, lower than the statewide and Henipin County averages of 8.7% and 9.3%, respectively. The proposed budget outlined a 3% cost-of-living increase for city employees, with step increases averaging between 2.75% and 5.5%. This budget accounts for approximately 71% of the general fund budget, highlighting ongoing inflationary pressures.

Public comments during the hearing were notably focused on the impact of tax increases on residents, especially those on fixed incomes. Kathleen Baliban criticized the discrepancy between staffing levels and compensation costs, urging the council to re-evaluate budget and management practices. Janet Massa expressed anxiety over her increasing property taxes, which had risen by 12.9% over six years, bringing her annual total close to $7,000. Massa also highlighted the increase in rental properties in her neighborhood, suggesting that rental corporations were outbidding regular homeowners, diminishing community stability. Another resident, Nicholas Vterberg, discussed short-term rentals as a means to manage rising living costs, opposing the proposed $700 licensing fee for such rentals, advocating instead for a 1% lodging tax.

The council acknowledged these concerns, with members emphasizing the importance of challenging individual tax assessments if homeowners believed their increases were unjustified. Discussions also touched on the complexities of property assessments and the implications of property value increases on tax levies.

In addition to financial discussions, the council approved the preliminary design layouts for several sidewalk projects scheduled for construction in 2026. These projects aim to fill existing gaps in sidewalks, enhance pedestrian safety, and improve connectivity in the community. The projects, detailed by a city representative, include plans for 73rd Street, 64th Street, and the area around Sheridan Hills Elementary. The total investment is projected at $2.9 million, funded through both grants and city funds. Residents will be engaged throughout the planning process, and the council was informed of potential tree impacts due to construction, with plans for replanting in place.

The meeting also addressed the issuance of $6,160,000 in general obligation sales tax revenue bonds, designated as series 2025A, to finance improvements to the Woodlake Nature Center and the Veterans Park Complex project. The city received a favorable bond rating of double A plus from Standard & Poor’s, attributed to its stable budget, financial performance, and healthy reserve position. The bond sale attracted a satisfactory interest rate of 3.0656 percent, lower than previous estimates.

The council also discussed the descertification of several TIF districts that had fulfilled their financial obligations, including the Lindale Gateway Interchange West and Urban Village districts. These descertifications were expected to increase tax capacity, reflecting successful redevelopment efforts.