MARSHALL — The city of Marshall’s preliminary levy for 2026 will be a 7.5% increase from this year.

At Tuesday’s city council meeting, council members approved the proposed preliminary levy, and set a “Truth In Taxation” hearing date for Dec. 9.

The final levy increase, which the city approves in December, can still be lower than 7.5%, said E.J. Moberg, director of administrative services for the city of Marshall.

“This is the most it can be for next year. We can lower them, if we’re able to, before December,” he said.

Moberg gave a brief overview of the Marshall city budget process this year. City departments started working on budgets back in June, he said. Council members started hearing budget requests in July, followed by budget work sessions in August and September.

“We’re asking for a proposed preliminary levy for 2026 of $10,610,168, which is a 7.5% increase,” Moberg said. He added that Marshall was not alone in Minnesota in looking at a potential levy increase that high.

“We’re not alone. There are a lot of cities that are in our range or higher again, and we feel comfortable with 7.5% at this time going forward for a preliminary levy,” he said. “But we are still working on health insurance (costs) and things of that nature, so we hope to actually have additional savings later.”

Moberg said earlier in the budget process, the city was anticipating a 20% increase in health insurance costs for 2026. Estimates are now down to a 13% increase, he said.

Council member James Lozinski said he hoped the public realized the work that went into bringing the preliminary levy down, from initial proposals that were in the double digits.

“Originally when E.J. brought this to us, I believe it was 13.96%,” Lozinski said. “This is a good budget that the staff has brought forward,” he said. “As E.J. says, we can keep working on it. But for where we’re at with our money and our budget, there’s a lot of sacrifices being made by our employees and by others in this 7.5% levy.”

“Staff really had a considerable amount of effort that went into trimming the budget to the point where it is right now,” said Marshall Mayor Bob Byrnes.

Council members voted to approve a resolution setting the preliminary levy increase at 7.5%, and setting the Truth In Taxation meeting at 6 p.m. on Dec. 9. After the hearing, the city budget and levy could go back before the council for approval on Dec.16, Moberg said.