ELY—Members of the city’s budget committee here are grappling with how to craft next year’s finances among uncertainty over staffing levels and health care costs.
A preliminary budget presented to the committee Monday included a $140,300 increase, which would necessitate a 6.07 percent increase to the levy.
During a Monday budget meeting, officials painted a stark picture of financial constraints as they reviewed the proposed $4.49 million general fund budget for 2026, up from $4.36 million in 2025. The property tax portion would jump from $684,600 to $808,200.
“We don’t have any money,” said one board member as they looked at certain budget requests. “Where are we going to get the money? Where do you want us to get that money? We’re already in the hole.”
Health care costs drive budget pressure
One culprit behind the budget strain appears to be skyrocketing health care costs. Officials cited examples of some departments facing 15 percent increases in health insurance premiums, with broader regional trends pointing to even steeper hikes in the future.
“St. Louis County has made out a 10 percent increase (to employee contributions) immediately, and they’ll probably … be looking at about 20 percent,” said Committeeman Al Forsman.
Preliminary budget documents show “increased staffing costs” for the Planning and Zoning and Police departments. Reduced staffing costs are expected in the Public Works Department. Overall, the city is budgeting to have 21.7 full-time employees, up 0.7 from the previous year.
Police staffing becomes contentious issue
Perhaps the most heated discussion centered on police department staffing and overtime costs. Police Chief Chad Houde is hoping to hire an additional officer, which he said would increase public safety while reducing overtime expenses. Right now, the additional hire is expected to increase health care expenses for the department by 49 percent, though Smith noted that number is highly variable.
In total, the Police Department’s budget is expected to increase by $122,700. Houde said he made reductions elsewhere by reducing things such as the amount of fuel and contractor services the department used.
Committeeman John Lahtonen asked him to do more.
“I appreciate what you’ve done. I’m asking you to sharpen the pencil a little bit more. We don’t have any money,” he said. “I want less than what you have here. I’m just trying to save. Where are we going to get the money from? Where do you want us to get the money?”
Houde said it’s difficult to save on employee costs since officers are often offered better wages from other departments. He said the person he hopes to hire already has an offer from another department.
“We’re fighting for officers every time,” He said.
Budget timeline and public process
The proposed budget is scheduled for submission to the city council in September, with another budget committee meeting planned before adoption. Officials will set the maximum property tax levy at a subsequent meeting, though they noted the final amount could potentially be lower than the proposed increase.
The overall property tax levy across all city funds would increase 6.07 percent, or $140,300.
City officials emphasized that the budget process remains ongoing, with opportunities for public input before final adoption.