Marshall Council sets 9.59% preliminary levy

City truth in taxation meeting is set for Dec. 8

MARSHALL -- This week, the Marshall City Council set a preliminary 2027 property tax levy increase of 9.59%. Marshall Director of Administrative Services E.J. Moberg said factors like health insurance costs, a request for an additional parks worker and debt service all factored into the proposed preliminary levy.

The city will hold a truth in taxation meeting at 6 p.m. on Dec. 8 at Marshall City Hall.

At Tuesday's city council meeting, Moberg presented a proposed preliminary levy for 2027.

"The budget is one of the most important responsibilities we undertake. It's also understandably one of the most discussed and debated matters each year," Moberg said.

He said city staff needed to balance community expectations for service with financial needs.

"Our budget process requires difficult choices, thoughtful prioritization and a willingness to consider new ways of delivering services to meet community needs," he said.

The proposal was for a 2027 tax levy of about $11.5 million. That would be an increase of 9.59% from 2026, Moberg said.

Moberg said said the largest factors impacting the proposed 9.59% levy increase were personnel costs and 2026 bond issuance. Increases in personnel costs came from increases in pay, benefits and insurance, as well as a request for an additional full-time employee in the parks department.

"A large impact for us is an expected increase in health insurance costs," in addition to debt service, Moberg said.

"So combined, between just personnel and the debt issuance, we're at about 10.7% up from what last year's levy was," he said. "We're only preliminarily asking for a 9.59% increase because some of our operating costs were down from 2026 to what we're proposing for 2027."

Moberg said Marshall's tentative tax capacity increase was around 6.3%.

Moberg said city staff will continue to work on the levy and budget before the council finalizes it in December.

"We are exploring options for that park staff position that has been added. We're hoping we can do it with existing staff and maybe some additional temporary part-time staff, to help with the budget," said Marshall City Administrator Sharon Hanson. "We still have to figure out library funding . . . those are some discussions that are still going to occur," Hanson said.

Council members voted in favor of the 9.59% preliminary levy.

The council needs to set a final city budget and property tax levy by the end of the year. They will consider the final budget and levy at the Dec. 22 city council meeting.