Winnebago has set its 2026 preliminary tax levy at $1,154,123.80, a proposed increase of $165,548.06 from the 2025 final tax levy of $988,575.74, or a 17.95 percent increase. This preliminary tax levy, along with a quote for new computers and a new home abatement application, was discussed at a Special City Council meeting on Thursday, Sept. 25.

City administrator Judi Hynes presented the council with Resolution 877-2025, which would set the preliminary tax levy for 2026.

“One of the big changes you’ll notice are the increases to the 2024C bonds for the Cleveland Avenue West project,” Hynes explained. “This year we’re only paying interest, but I’ve also included our 2027 projections, which pay for both interest and part of the principal, so that you aren’t caught off guard by a drastic increase next year.”

Other adjustments made to the preliminary tax levy included pulling funds from the utilities funds and Northwest Street and Stormwater Project and putting them towards the 401 Capital Fund, which has been heavily utilized this year to pay for both a new fire truck and a new ambulance.

Hynes also mentioned that some changes had been requested by the Winnebago EDA members regarding the city’s current contract with CEDA.

“The EDA has expressed concerns that we are paying too much for CEDA services, and would like the price to be lower,” Hynes shared. “We have until our six-month contract with them expires at the end of the year to decide how we want to proceed.”

The current cost of CEDA services one day per week over the period of a 6-month contract is $55,053. An alternative option would be to hire a Community Development Coordinator (CDC), which would be a full-time position and fill a similar role for the city. Taking into account factors such as hours and benefits, the cost of hiring a CDC at a rate of $22.83 per hour for 24 hours a week over that same six-month period would amount to $32,808.36.

“My concern with this idea is that yes, it’s a lot cheaper for us to hire a CDC this way, but will they have the same qualifications as a CEDA representative would?” council member Calvin Howard asked. “I’d be worried about hiring someone without the proper experience if we did choose this option.”

“It’s definitely a rock and a hard place type of situation,” mayor Jean Anderson replied. “CEDA is expensive, but they have the qualifications we’re looking for; a CDC would be cheaper, but there’s no guarantee we’d get someone qualified.”

Council member Tony O’Donnell suggested that, if the council wanted to test out someone in a CDC position, they could split the difference and have both CEDA services and a part-time employee for the CDC position.

“Maybe we can go half and half – keep CEDA on for one day a week, and also have a part-time employee as a Community Development Coordinator to see if we like having that position available,” O’Donnell explained. “If we end up not liking it, we can drop that idea and go back to using CEDA.”

Howard also brought up the point that CEDA had a lot of experience with grant-writing, and that might be a skill that a potential CDC employee would not have.

“CEDA basically pays for itself with all of the grants that it helps us get, and while I know that Judi has some experience with grant writing herself, she has a lot of other jobs to do as well,” Howard remarked.

“CEDA is also useful because you’re not just paying for one person – you get the entire community,” Anderson added. “If our representative doesn’t know something, they have the connections and resources within CEDA to learn more about it and report back with an answer.”

No formal action was taken on this part of the preliminary tax levy, but an agreement was made to add the issue to the agenda at the next City Council meeting on Oct. 14.

Hearing no further discussion, a motion was made and seconded to pass Resolution 877-2025, setting the 2026 preliminary tax levy at $1,154,123.80. The motion was passed unanimously.

Other business discussed at the Special City Council meeting included:

• The purchase of five new computers from Bevcomm for use by the Winnebago Fire Department, Police Department, Water Treatment Plant and two city employees at the price of $7,733.59 was unanimously approved.

• Hynes presented the council with a Housing Tax Abatement application from Jenna Osborn. Following some discussion, a motion was made and seconded to hold a public hearing at the next City Council meeting on Oct. 14 for the tax abatement, where a resolution could then be passed to approve it. The motion was passed unanimously.