2026 Property Tax Levy Estimate

At a prior workshop, staff presented City Council with fiscal and other considerations related to the upcoming 2026 property tax levy. At the October 5^th Committee of the Whole meeting, staff presented various options pertaining to the 2026 levy for consideration. After discussion, the overall consensus recommendation for the 2026 levy was an increase of 2.7% over last year’s amount. The 2.7% coincides with the inflation factor from the CPI-U for 2025.

The official 2026 tax levy estimate compared to last year’s extension is attached. The proposed levy estimate for 2026 would be $417,083 more than last year’s extension of $15,458,772 for a total of $15,875,855. Of the $417,083 increase over last year, $214,113 will go towards required increases in police and fire employer pension contributions and $202,970 will go towards other purposes.

The City has a number of outstanding GO bonds on file with that County that while they are initially included in the estimate, the City will abate the tax levy associated with each of the issuances later in December.

As previously presented at the October 5^th Committee of the Whole meeting, an increase of 2.7% would equate to an increase of about $23 a year for a home with a fair cash value of about $400,000.

Staff will provide a brief levy presentation at the October 19^th meeting. Once approved, the estimate would be formally approved at the November 2nd City Council meeting.  Final approval of the tax levy ordinance would be at the December 7^th City Council meeting. 

Recommendation: Approve