The council’s presentation of the 2026 preliminary budget took center stage, with discussions centered around the planned tax levy increase and its implications for the community. The mayor characterized the budget as a comprehensive narrative reflecting the city’s accomplishments and future direction, emphasizing its role as a blueprint for city operations. The preliminary budget outlines a 15.5% increase in operating expenses, largely driven by rising costs and the need for equipment replacements. Additionally, the mayor noted that while reserve funds had been previously used to cover expenses, these reserves have diminished, prompting efforts to rebuild them.

The proposed tax levy increase of approximately 15%, equating to about $1.67 million, is set to support general operations, capital improvements, and a city hall reserve. The budget outlines allocations for public works, engineering, and stormwater management, which will receive 21 cents of the tax levy. Culture and recreation, covering various community and civic centers, will be allocated 16 cents. A portion of the levy, specifically 3% of the tax rate, has been earmarked for a future city hall since 2022, with funding increasing from $485,000 in 2022 to an estimated $627,750 for 2026.

The budget presentation also detailed the tax rate changes, with an overall estimated increase of 3.6%. Using the median home value of $193,500 in Willmar as an example, the city taxes owed under the proposed 2025 tax rate would amount to $1,184, reflecting a $70 increase, or about $5.83 per month. With a property value change of 7.3%, taxes owed would rise further to $1,271.

Additionally, the council addressed property assessments related to the 2025 street improvement project. Thirteen objections were raised, with concerns primarily focused on the cost and perceived benefit of the assessments. Staff concluded that the assessments adhered to city policy, recommending no changes but suggesting deferment options for property owners facing financial hardship. During the public hearing, discussions centered on parcels associated with Ridgewater College, with staff maintaining that the assessments were beneficial and in line with policy.

The meeting also covered the introduction of an ordinance amendment pertaining to cannabis and hemp retail businesses. The amendments, administrative in nature, were tied to legislative changes enacted in 2025. Following a brief public hearing, the council unanimously approved the amendments and moved to publish the ordinance by summary.

The council further discussed a proposed zoning ordinance rewrite, recognizing the need to update the existing ordinance from 1994. The rewrite aims to accommodate current growth patterns and diverse housing types, such as patio homes and duplexes, which are constrained under the current regulations. The council approved the release of a request for proposals, with a budget of $95,000, to engage planning consultants with expertise in zoning reform.

Infrastructure projects were another focal point, with the council approving an extension for the Wilmer Rail Park construction deadline due to delays in obtaining approvals from BNSF. Additionally, repairs to the civic center’s east wall were discussed, with the council approving the replacement of doors and installation of metal siding and insulation to address drainage issues causing block damage.

Lastly, the council reviewed applications for cannabis micro-business retail licenses. Two applications, from Cloud9 Farms LLC and Mary Jane, Buds, and Edibles LLC, were approved after confirming compliance with zoning requirements and distance regulations from schools and daycares.