Staff photo by Fritz Busch Brown County Commissioner Brian Braun updates the Sleepy Eye City Council Tuesday with county board information.

SLEEPY EYE — After discussion Tuesday, the Sleepy Eye City Council unanimously approved setting a 12.5% 2026 preliminary tax hike.

Sleepy Eye City Manager Bob Elston initially recommended a 9.76 preliminary tax increase that would have boosted the city levy 9.76 percent, from $1,849,700 to $2,030,256 for 2026. That increase would have boosted annual property taxes on a home valued at $150,000 by $100 and $175 on a home valued at $250,000.

Elston said a 9.76 percent increase keeps up with inflation by adding $180,556 in total revenue to the 2026 city budget.

“We have investments like the pool (water park) and bike trail that need updating. It boils down to what we need,” he said.

Councilor Scott Krzmarzick said he was interested in increasing taxes now to reduce future costs.

“A percentage point (tax hike) here or there is better than six percent down the road,” he said.

Councilor Christina Andres said she didn’t want to set the preliminary levy too low because the final levy can’t be raised before it is sent to the Brown County Auditor’s Office in December.

“I’d hate to see us handcuff ourselves,” she said. “I think it would be a disservice to not give ourselves some (budget) wiggle room. Not that we can’t set it (final levy) at 9.76 percent in December.”

Councilor Nate Stevermer said he favored issuing bonds for water park, ballpark lights and trail improvements instead of paying for it with tax levy hikes.

“We’re looking at a bond issue at some point. If we can get to 2028, we can pay off one bond issue,” said Elston. “How many of projects can we address next year or the following year? We can actually start projects in 2027 because bond payments wouldn’t start until 2028.”

Councilor Gary Windschitl said future budget items should be prioritized.

“We can’t be everything to everyone, but be really good at what we do,” he said.

Andres made a motion, seconded by Krzmarzick for a 12.5 percent increase for the 2026 preliminary levy. The hike would raise annual taxes on a $150,000 home by $125 a year; $225 per year on a $250,000 home.

In his county board update, Commissioner Brian Braun said commissioners began discussions with a 16.6 percent increase over the 2025 levy.

“After three days of budget work with county departments, we’re down to an 11.1 percent preliminary budget increase. We aren’t done yet. I think we’ll be closer to a 10 percent increase,” said Braun. “We have the option of using reserve funds to reduce the levy.”

He urged the public to participate in the Minnesota Go Public Engagement Survey designed to create transportation priorities.

“It was created in 2011 to help build a transportation system for the next 50 years,” said Braun. “They want feedback on future improvements from all Minnesota residents. The survey takes about five minutes. It’s voluntary. Now is your opportunity to provide your opinion.”

For more information, visit https:talk.dot.state.mn.us/minnesota-go-vision-update.