The City begins the budgeting process in July and certifies a preliminary levy (proposed tax) & budget on or before September 30th for the following year. 

** Cottonwood preliminary certified a 9.56% levy increase from 2025 to 2026.  Once a preliminary levy is set, the amounts can only decrease for final certification - never increase.

What goes on my taxes?

** Cities certify funds on taxes for General Operating and Debt Payment. 

Where is the 9.56% change?

** Due to inflationary costs and the rising cost of goods, the increase is being found solely in the increased cost of operations.

A preliminary levy transitions to the final levy certification on or before December 20th, 3 months after the preliminary certification and 5 months after the budgeting process began.

** In that 5 month time frame, items that were planned for in the budget (General Operating Funds) can be worked into the current year once profit and loss is evaluated in the 2nd half of the year. Allowing for that preliminary certified amount to come down.

What's the final levy looking like?

** Anticipated general operation costs have been able to come down as we have progressed through the 2nd half of the year and anticipated large project will be sought from other funding sources. Therefore final levy increase will come in at 8.42% - a 1.14% decrease from the preliminary levy set in September.