The council’s primary focus was the proposed property tax levy for the upcoming year. The total levy is projected to rise by 6.99%, amounting to $2,134,972, with an 8.89% increase allocated to the general levy and a marginal 0.22% increase for the debt service levy. This increment is lower than initial estimates, which suggested a steeper tax burden. Funding for the levy is derived from various property types, with residential properties contributing approximately 50% and commercial properties another 36%. During the discussion, council members highlighted that the tax levy is necessary to sustain essential city services and fund ongoing projects.

A significant portion of the meeting was dedicated to addressing residents’ concerns about the tax increase. Milo Durban, an audience member, expressed his dissatisfaction with the rising property taxes on his hangar, valued at $99,000. He emphasized the financial strain, stating, “My taxes are going up $20 and some dollars and it’s only $99,000,” and questioned the rationale behind the tax structure. Durban, who is semi-retired and on social security, shared his concerns about the cumulative financial pressures, which include additional assessments for the land on which his hangar sits. He warned that these costs could discourage potential buyers and limit development, urging the council to consider reducing expenses associated with new hangar constructions.

In response, council members acknowledged the concerns raised by residents like Durban and discussed the challenges of balancing revenue needs with the desire to keep taxes as low as possible. They reiterated that while they do not control property valuations, they understand the frustrations of constituents. The council reminded property owners of the opportunity to contest their assessed values during the annual local board of appeals meeting in the spring, emphasizing the channels available for residents to voice their concerns.

The meeting also featured a comprehensive presentation on the recommended 2026 budget, which outlined a 5.63% increase in expenditures. The budget preparation process involved reviewing expenditures and revenues, guided by a five-year budget model to assess the financial implications of council decisions. Key components of the budget include a 1% increase in fees, fines, and permit revenue, and a 5% rise in fire department fees. Employee wages are expected to grow by approximately 6%, while benefits are projected to increase by around 11%. The budget allocates funds for equipment purchases, such as a new snowplow and lawn mower, and repairs to the fire department’s parking lot and garage.

The council discussed the importance of conservative revenue and expenditure assumptions to maintain financial stability. The budget supports the implementation of a new compensation plan and accounts for increased employee health insurance costs. Funding is also designated for capital improvements, economic development, and public works initiatives, such as trail extensions and facility enhancements. The presentation highlighted specific budget variances, noting instances where expenditures exceed revenues, necessitating the use of reserves.

Throughout the discussion, council members sought clarification on budget items and their impacts on city operations, expressing concern for balancing the budget while ensuring necessary improvements and sustainability. They addressed the overall financial strategy, emphasizing the need for cautious estimates to avoid over-projection and ensure fiscal soundness. The implications of the recommended property tax levy, which must be certified by September 30 each year, were also deliberated, with members considering how this would affect future fiscal planning.

In addition to financial discussions, the meeting included public expressions of gratitude. Glenn Wyel, another audience member, thanked city staff for completing the sidewalk project on North First Street, saying, “On behalf of the residents on the 500 block and myself, I just want to say thank you,” and commended the efforts to maintain the area post-construction.