FERGUS FALLS, Minn. — The Fergus Falls City Council is facing a tough budget year after getting a first look at the 2026 preliminary budget Wednesday morning, Sept. 10.

City staff said costs are rising faster than expected, with employee health insurance costs increasing by nearly 25%. That is pushing the city’s proposed tax levy to more than $9 million, which is about an 8.5% increase from 2024.

“The last two years things kinda maybe went in our favor a little bit more, and this year, we’ve been thrown several curveballs,” said Fergus Falls City Council member Laura Job.

The budget will go before the council again Monday, Sept. 15. A final public hearing is set for December.

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