SLEEPY EYE — The Sleepy Eye City Council unanimously approved a 9.17% tax levy hike Tuesday.

The $5.5 million budget for 2026 includes a $169,556 budget increase that boosts taxes on a home valued at $150,000 by $7.50 a month and $90 a year. Taxes on a $250,000 house increase $14.50 a month and $175 a year.

Sleepy Eye City Manager Bob Elston said city employees will receive a 3% salary hike next year.

He said 37% of budget funding comes from Local Government Aid from the state legislature. Residential and commercial property taxes are 36% of the budget, city service fees are 14% of the budget income.

Elston said the biggest city expense is street repair and new street construction or reconstruction, followed police, fire and ambulance costs, parks and baseball and softball fields.

Levy approval came on a motion by Councilor Nate Stevermer, seconded by Gary Windschitl.

No comments were heard at a Truth in Taxation hearing.

The city council unanimously approved $2,230 in 2025 public utility commission year end write-offs, motion by Councilor Christina Andres, second by Windschitl.

“That’s the lowest write-off amount I’ve ever seen here. I think it’s pretty low for a $5.4 million budget in 2025,” said Elston. “I’d like to thank utility billing clerk Tammy Helget and the rest of our office staff for their work.”

Helget said Wednesday that she made a few dozen phone calls to individuals who owed utility bills this year.

“I don’t let it drop until there’s a dead end,” said Helget about the year end unpaid balances.