Discussion of the 2026 Property Tax Levy

At a prior workshop, staff presented City Council with fiscal and other considerations related to the upcoming 2026 property tax levy. At the Committee meeting, staff will provide a brief presentation on the upcoming tax levy, and present some options for consideration for the upcoming 2026 levy:

1. For background, last year’s 2025 property tax levy was $15,458,196, of which $7,758,196 or 50.2% was allocated for required police and fire pension funding requirements. The remaining amounts funded general increases in the cost of services. The City must fund increases in police and fire pension contributions to the total amount of $214,133 over last year as part of this upcoming levy, based on the updated actuarial valuations.

2. Tax levy options for consideration are listed below:
a. 1.4% Increase. Would generate $214,133 more than last year’s levy but would only fund required police and fire pension contributions. $12 annual impact for a $400,000 home.
b. 2.7% Increase. Would generate $417,371 more than last year’s levy and provide $203,258 in additional funding over pension requirements. This percent increase ties with the overall CPI-U increase during calendar 2025. $23 annual impact for a $400,000 home.
c. 3.1% Increase. Would generate $479,213 more than last year’s levy and provide $265,100 in additional funding over pension requirements. This percent increase ties closely to the average percent increase in the tax levy the City has done over the last eight years. $27 annual impact for a $400,000 home.
d. 4.1% Increase. Would generate $633,798 more than last year’s levy and provide $419,685 in additional funding over pension requirements. This percent increase would combine the pension requirement funding with the overall CPI-U change last year. $35 annual impact for a $400,000 home.

Staff will provide a brief levy presentation with additional background information. Staff is requesting feedback and overall consensus so that a formal levy estimate recommendation can be presented at the October 19, 2026 Committee of the Whole meeting for consideration.

Discussion and Consensus Recommendation