---

Faced with a $532,000 increase in 2026 operating expenses, the Chisago City Council has decided to use Local Government Aid (LGA) dollars to help keep the city’s 2026 levy hike under 10 percent, filling in the gap to get to the 16.4 percent proposed increase.

At its Sept. 23 meeting, the city council passed resolutions certifying a proposed 2026 levy to the Chisago County Auditor by the Sept. 30 deadline and setting a public hearing on the 2026 budget for 6:35 p.m. Tuesday, Dec. 9. 

A 16.4 percent increase in the proposed 2026 general fund levy reflects: a 9.3 percent increase in the Lakes Area Police budget, an estimated 3-10 percent increase in League of Minnesota Cities insurance premiums, a 12.7 percent increase in health insurance premiums, an increase in union contract wages and benefits, increases in contract mowing expenses, a 3.75 percent cost-of-living increase for city employees, and minor increases related to the city share of the Paid Family Medical Leave statute that takes effect January 1, 2026. Operating levies for the EDA and Ojiketa Regional Park also will rise slightly. 

These increases, coupled with $24,000 in covering tax abatement for South Lindstrom Shores and debt service levies for the fire hall and general obligation bonds, bring Chisago City’s proposed 2026 local levy to $4.12 million. It was $4.028 million for 2025.    

“Due to the fact we’ve been trying to hold our tax rate down as much as we could (in recent years), this year was a bigger hit than we anticipated,” said Mayor Jeremy Dresel. “That’s why we felt it was a good idea to help us get over the hump using LGA dollars.” 

    

---