Go low, then go high?
It’s a question usually used in a sports analysis more than City budget talks, but that was the question presented to the Tracy City Council Monday night. After earlier budget meetings and further department budget reviews, the City was tentatively looking at a 4% increase for 2027. While that might be doable this year, looking toward the more long-term future isn’t as rosy, finance director Tyler Twistol explained.
While keeping the levy increase on the lower side this year is an option for the council, the City is facing a shortfall of $130,000 for 2028 based on projections. The question Twistol had for the council is, does it want to do 4% this year and then have to do a 12% next year or is the City better off splitting it between the two years, so it is not such a jump next year.
The council asked for explanation and breakdowns from Twistol and City Administrator Jeff Carpenter as to what a 4%, 6% and 8% levy would mean for the future levies for comparison. Each 1% increase results in approximately $16,000 for the budget.
The council set a budget meeting for Monday, Sept. 21, at 5:30 p.m. A charter meeting will follow the budget meeting. The preliminary levy must be set by the end of September. The city can decrease the levy at the December meeting but cannot raise it more than the preliminary amount.
In other council news …
• Approved resolution 2026-69-5 year water rate plan.
• Approved resolution 2026-90-Ammend 2026 fee schedule.
• Approved resolution 2026-71-Pay App #3 - SCADA Improvements
• Approved resolution 2026-72-Accepting the offer of the MN Public Facilities Authority to purchase a taxable grant anticipation revenue note, series 2026a, in the original aggregate principal amount of $69,365; proving for its issuance and payment; and taking other action with respect thereto.
• Approved an increase to the Tracy Fire Department retirement fund to $2,400.
• Approved a temporary liquor license for Lonnie Cochran’s October benefit.
