By Logan Wells, News Director | Logan@kymnradio.net
Editor’s Note: Below is the full story that aired on KYMN today. We are trying a new experiment for these bigger stories, providing different shorter summaries. Click here for a 100-word, 300-word, and 500-word summary of the story.
On Tuesday night at their work session meeting, the Northfield City Council heard the first detailed proposals for the budget and tax levy increase for 2026. The discussion marks the beginning of a months-long process that ends in December with the Truth in Taxation meeting and ultimately the final approval of both items. However, the time for the public to have its say is now; the debate begins, and changes can be easily made to the budget.
Listen to the News:
The Cost Drivers: The Ice Arena & Employees
There are two major items that are causing the increase in the city’s budget this year: the ice arena and city staff.
Let’s start with the Ice Arena. With the construction of the project approved this spring, the council also approved the cost of the project, which was $22.9 million in total cost to taxpayers. If all else were held equal, the city’s overall tax levy would have to increase by 8.4% to pay for the arena. The impact of just the ice arena on a house valued at $350,000 would be $201 a year in increased taxes.
The other major cost factor is labor. City Administrator Ben Martig stated that they are not adding any new positions to the city. Existing labor contracts and keeping the city’s wages comparable to those of other cities were driving the cost. Here’s Martig on KYMN:
“So basically, because those labor costs are going up to keep up with the market conditions, that means those are fixed costs that you have, kind of like the debt. If you know you have to pay people a competitive rate to keep them here or attract new people to work for us.” – Ben Martig, Northfield City Administrator on KYMN In The Morning
From the 8/12/2025 City Council packet.
However, these two cost items, the Ice Arena and employees, were higher than any tax levy increase the council was willing to consider, meaning budget cuts will be in necessary. The size of the scope of the budget cuts depends on the size of the tax levy increase.
Staff Present Three Proposals:
At Tuesday’s meeting, the staff presented three proposals for the tax levy increase of 14.5%, 9.9% or 3.0%. The tax impacts for a home valued at $350,000 would be $324, $216, and $48, respectively.
For the 14.5% levy increase, $578,000 of budget cuts would be needed. Among the cuts are reducing the city’s maintenance funds, ending the 4th of July Fireworks show, delaying repairs to the city’s emergency sirens, and a 20% cut in funding to Health Community Initiative (HCI), the History Center, Alliance for Substance Abuse Prevention (ASAP), Age Friendly, and the Fire Department (NAFRS).
For the 9.9% levy increase, $1.395 million would be needed in budget cuts; the same options as early would be included now, with a 50% cut to HCI, the History Center, ASAP, Age Friendly, and NAFRS. Further reductions in street, trail, and sidewalk maintenance would also be needed. The city would overall reduce staff by four people in total, one from public works, the library, the police, and community development.
For the 3.0% levy increase, $2.617 million would be needed in budget cuts; the same options as both early proposals would be included now, with a 100% cut to HCI, the History Center, ASAP, and Age Friendly. Further decreases in street and sidewalk maintenance would be needed. The rent on 50 North at the Community Resource Center would have to be raised immediately to $172,000, instead of the phased-in plan that originally would have them pay $49,000.
View the full presentation and information from the city here
However, the biggest impact would be to city staffing levels. Martig stated that with fewer staff, residents could expect lower service levels:
“That’s what people are as people is providing a service and service level where they’re talking about the library and you know, providing programming and having hours open or if it’s the Police Department patrolling the street, responding to issues, public works, people working on streets, pulling weeds in our parks, those kinds of things. So those are all Things to consider when you talk about reduction in people, it is talking about reduction in service level too.” – Ben Martig, Northfield City Administrator on KYMN In The Morning
In the 3.0% levy increase option, 11 staff or 10% of the city’s overall workforce would have to be cut. For the police department, that would mean fewer patrol officers in the department. However, the library would be most impacted, having to close on Sundays and Mondays, stop staffing the Oasis, and reduce programming.
No action was taken on any of the proposals, and they are still being refined for future conversations.
The Council Begins Debate:
The debate about the levy on Tuesday night was widespread, with the council first split on the issue. On one side was Councilor Peter Dahlen, who was in favor of the 3% levy increase, while Mayor Erica Zweifel and Councilor Chad Beumer indicated there support for the 9.9% levy option. Here’s Zweifel at the Council meeting:
“See this as an opportunity to review and hone the budget. We have a new Council, a new comprehensive plan, and a new strategic plan. I would really like us to focus on the new strategic plan and be strategic with our budgeting.” – Erica Zweifel, Northfield Mayor at the 8/12/2025 City Council Meeting
Picture by Logan Wells/KYMN News
Picture by Logan Wells/KYMN News
Picture by Logan Wells/KYMN News
On the other side of the issue were Councilor Jessica Peterson-White and Councilor Kathleen Holmes, arguing for one of the higher levy options to avoid steeper budget cuts. Here’s Peterson-White:
“We had abundant information from staff. All of us had the same information about what the cost per household would be for the Ice Arena. We never pretended the cost would not be what it is. We didn’t say well if we cut the library 2 days a week and eliminate a huge chunk of funding from our Economic Development and affordable housing efforts then we could build an ice arena. That is not how we talked about it.” – Jessica Peterson-White, Northfield City Councilor at the 8/12/2025 City Council Meeting
However, the discussion also revealed how complicated the issue was, with Councilor Davin Sokup and Councilor Brad Ness not definitive about what levy option they were interested in. Here’s Sokup:
“To be honest I feel like I’m operating within the option C framework but things like not having the library open on Sundays or a decrease in the HRA and EDA budget is kind of completely antithetical to our strategic plan.” – Davin Sokup, Northfield City Councilor at the 8/12/2025 City Council Meeting
Several other items were discussed as well, including the municipal-owned liquor store and early voting at city hall. Will have future stories on those issues.
Timeline Forward
The council will again discuss the budget in September and set the preliminary levy at the end of the month, which is the maximum amount they can set the levy at. The discussion will then continue through the fall, with the final budget and tax levy voted on in December.
Will continue to follow this story as it happens. Head to our website for more details and information, including a new experiment we are trying, a short, medium, and long summary of this story.
Correction Notice (8/15/2025 at 7:20am): Councilor Beumer has since indicated his definitive support for the 9.9% levy increase option, previously he was listed as not supporting definitively any option.
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