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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />11.6 <br /> <br />Meeting Date <br />November 3, 2025 <br />Prepared By <br />Cal Portner, City Administrator <br /> <br />Item Description <br />2026 Budget <br />Reviewed by <br />Lori Stich <br />Joe Stremcha <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Discuss and provide staff direction. <br /> <br /> <br />Background/Discussion <br />At the last budget work session, the Council consensus was to approve a preliminary levy at the rate of 7.9% <br />and seek additional budget adjustments to decrease the rate. <br /> <br />ERMU has discussed an increase in the Payment in Lieu of Taxes provided each year to the city. The city has <br />been informed that it will no longer qualify for Local Government Aid, which has been utilized to fund capital <br />replacements. The Council will need to consider that revenue replacement, as well as how to discontinue <br />fund transfers from enterprise and capital funds to fund General Fund operations sustainably. <br /> <br />Financial Impact <br />The Preliminary Levy approved in September amounts to a $77 annual city property tax increase ($6.42 <br />monthly) on the median valued home in Elk River ($369,200). Total city taxes would amount to approximately <br />$120 per month for city services. <br /> <br />Mission/Policy/Goal <br />The City of Elk River Mission and Vision Statements <br /> <br />Attachments <br />1. 2026 Property Tax impacts <br />2. 2025-26 Rev/Exp Comparison <br />3. 2026 Preliminary Budget <br />4. 2026 Preliminary Levy <br /> <br /> <br />Page 310 of 322