The City Commission decided to leave open the option to increase the mill rate by one mill if it chooses to do so down the line after its Monday meeting.
The commission discussed budget projections and projects to be included in the 2026 general fund.
The commission approved a not to exceed mill levy of 40.038 to give it leeway to continue to weigh options of what it can get while keeping the rate flat or needing to slightly increase the rate.
The commission is not set on increasing the mill levy, but due to the revenue neutral rate hearing timeline, it had to decide the max possible levy rate. With this action, the commission can still leave the levy flat, but it also has the option to increase.
Commissioners decided to leave the option open to see what economic development costs and new personnel could be included in the higher mill rate. Mayor Tim Reazin wants to see more progress made on hiring additional city employees to help get ahead of projects and prepare for growth before it’s too late. Reazin is in favor of hiring additional planning personnel to take some of the strain off other city employees, as well as hiring a full-time city planner.
“I think I’ve seen enough of us not being ahead of things to know what not being ahead of things looks like. And if it means a staff person that can do that job and work with codes and building staff and then be in department to help out but then help the city manager’s office as we get the development growth in, and I think it’s worth the money, and it’s about advanced planning that we haven’t had,” he said.
With the flat mill levy, city staff said they would be able to hire a full-time city planner in the middle of next year, but Reazin said he would be more in favor of making something happen sooner rather than continuing to wait.
“I understand there’s folks that aren’t on the same page with me about taxation and that’s why we’re up here like this, but I think that if we don’t find some of these things to get ahead on, we’re still just behind them,” Reazin said.
Interim City Manager Zack Daniel also said it was possible they would be able to hire a full-time planner earlier while still keeping the levy flat, but city staff would have to examine how costs can be moved around. More budget discussion will continue at the next July meeting.
The city also set its revenue neutral rate hearing for Sept. 8 since it plans to exceed the revenue neutral rate.
The following shows the 2025 budget versus the current estimates for general fund expenditures and revenue:
Local sales tax is stable but down from original estimates, Daniel said.
The 2025 budget includes $100,000 for economic development from the general fund, which could also help contribute to a new position, Daniel said.
The city was recommending a mill levy that held flat prior to hearing the commission wanting to move forward with other positions sooner than later.
The 2026 general fund estimates are helped by court activity continuing to trend up, Daniel said.
Some expenditure notes for 2026 included in the presentation were:
Includes 4.2% overall compensation adjustment for staff
Assumes 12% increase to health benefits
Includes the mid-year addition of a full-time city planner
Includes the addition of a part-time deputy court clerk
$125,000 general fund support for economic development
$316,659 transfer to capital improvement projects 4-mill fund
$100,000 transfer to support 2026 pavement management project
$40,000 toward the Fire Department’s apparatus replacement schedule
$40,000 in crack seal and pothole material
The 2026 non-utility capital improvement projects include public safety projects for both the fire and police departments:
Police equipment/software improvements
Lexipol policy update software ($15,000 estimate)
Plate reader ($12,220 estimate)
Ballistic shields ($13,530 estimate)
Continues annual patrol car program ($43,000 in CIP 4-mill fund)
Fire department facilities and apparatus projects:
General fund encumbrance for apparatus replacement schedule ($40,000 estimate)
Training center development ($28,550 estimate)
Additional Tahoe ($64,5l0 estimate, fully outfitted)
Also Monday night, the commission opened and closed a public hearing regarding the establishment of a reinvestment housing incentive district for the development of the Shadow Ridge North neighborhood.
The hearing was first opened on Feb. 24 and extended again to May 12 to give the developers time to talk to neighboring property owners and weigh the potential for a special benefit district. No additional action was taken on establishing the district because the developer is still having conversations about the project and may re-submit a new plat for the project.
Reazin asked when materials might be resubmitted.
Daniel said he expects they would submit new materials to the Planning Commission in the next couple of months but wasn’t sure of their exact timeline.