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After patiently fielding comments and questions from the half dozen or so people attending the council meeting last week, the Taylors Falls City Council adopted the 2026 budget and levy.  Several residents over the span of 75 minutes described their concerns about the proposed city property tax, which was shown to be increasing by 27 percent in early statements that went out by mail.  

The increase unanimously adopted, however, was nine point seven percent, with Council member Lee Samuelson absent.

Taylors Falls levied $844,000 in 2025 and will levy $926,000 locally in 2026.

Property valuations were a big discussion but residents were reminded the county sets the property valuation of every parcel.  If you wish to contest valuation you must contact Chisago County assessor staff.  Each tax statement has an explanation printed on it of the process and deadlines. 

Debt was also a big topic of debate, both during the property tax review portion and in regular business.  While spending in the General Fund for next year is only budgeted to go up about five percent, Taylors Falls has some catching up to do that’s affecting its overall fiscal universe.   As Council member Robert Bayer said, “We needed to do what we needed to do.”

Taylors Falls City Hall roof and windows were leaking and the decades old HVAC system was shaky. 

The council borrowed to get these done this year and to buy a fire truck.

Taylors Falls required a loan to pay a contractor to abate the remaining Springs Inn debris and make the lot useful again.  There was a short lived hope that the fire scene cement could be buried on-site, but the pollution concerns with soils and run-off made hauling the cement away necessary— which council learned last week results in double the cleanup costs.  The city got a $30,000 loan from Chisago County HRA/EDA and will put city costs of $62,359 on the tax statement of the property owner as a lien at eight percent interest.

City officials also supported putting more money into the street account and boosted the tax revenues dedicated here to $112,500 for 2026 from the $90,000 budgeted in streets fund for this year.

The sheriff patrol contract rate increased by $7,000 for 2026.  Two incoming firefighters need turnout gear, which brought this line item up a few thousand dollars.

State aid and grants income are going to decrease for 2026.

And, Council member Tim Grote explained the city has a fund balance now around 30 percent of what it spends in a year and the goal is 50 percent. This is policy because of the timing when cities get their property tax distributions twice annually.  The local units of government have to be able to cash flow and cover operations and emergencies.

Grote also noted there are large debt payments (for projects undertaken years ago)  that will be retired in a couple years, which should help even out levies.

Local Sales Tax plan

As a low industrial base city, Taylors Falls is mostly residential tax dependent.  In an effort to broaden where the city gets funding, council voted unanimously to ask for enabling legislation to hold a Local Option Sales Tax referendum.  The local sales tax is one half of one penny.

Council members said this is a tool where residents aren’t the only ones contributing, like property tax is. Taylors Falls gets hundreds of thousands of out of town visitors annually. 

The referendum is tentatively slated for next November’s general election.  The eligible projects for use of the LOST revenues still are being worked out.  The legislature must first grant the city authority to proceed. and the state lawmakers reconvene in February.

Council member Bayer said based on sales tax applied to his energy bills, cable television sales tax and items/meals he regularly buys in town (gasoline is excluded) he would pay about $2 a month in Local Option Sales Tax.  “The majority of (revenues) will come from visitors,” he said, and this means the city residents wouldn’t have to foot the bill for special projects.  The LOST revenues may not be used in the general fund for daily operations.

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