Glenwood preliminary levy increased by 13% over 2024
News | Published on September 30, 2024 at 12:18pm CDT
By Tim Douglass
tdouglass@pctribune.com
After looking at a budget that required an estimated 16.21% levy increase over 2024, the Glenwood City Commission reduced that proposal and adopted a preliminary levy increase of 13% for 2025.
That preliminary levy can be reduced but cannot be increased when the final levy is adopted in December. The resolution approved unanimously by the commission adopted the 2025 Preliminary Budget including the preliminary property tax levy in the following amount: General Fund of $2,379,812; Bonded indebtedness of $107,716; and a total levy of $2,487,528.
“We did come in rather steep with the initial preliminary levy,” said City Administrator Dave Iverson. He pointed out that inflation climbed significantly for things like wages, pickups, police squad and other equipment. “We added to capital expenditures to the (2025 budget) to cover replacement costs in those areas. The capital expenditures combined with a one-time state aid funding in 2024, pushed the budget up about $200,000, Iverson explained.
“If you’re concerned with that number, we can do something that makes you feel more comfortable,” Iverson explained to the commission. He told commissioners that if they wanted to have staff do some cuts, he could go to a 13% to 14% levy increase and adjust the budget to that amount.
Commissioner Todd Gylsen asked for some examples of capital expenses that were added to the budget. Iverson said the 2025 budgeted for a new police officer, an added a police vehicle, built in some anticipated expenses in the city’s siren warning system, and provided for upcoming equipment replacement at Lakeside Ballroom. Iverson explained that the Ballroom is now 20 years old and things like heating and cooling systems, coolers “only last so long” and will need to be replaced at some point. He added that because of age, it was no longer possible to get parts for some of the equipment at Lakeside Ballroom, saying the equipment would have to be replaced. Gylsen asked city staff to provide the lease terms for Lakeside Ballroom. The city owns the building and leases its operation.
“The majority of the increases (to the city’s 2025 budget) were made just to keep up with inflation,” Iverson explained.
Commissioner Neil Haynes asked about a possible local sales tax. Iverson said the city is now limited to asking for a 1 percent increase in sales tax.
He said in the bigger picture, the city is a service-orientated business and said the commission would have to look at what service we’d like to cut “…the police department? Doing less snowplowing?” He also pointed out that the city will incur some expense because of the confirmation of emerald ash borer (EAB) in Pope County. “We’re looking at in estimated $200,000 just for identifying and removing boulevard ash trees, not including the parks,” Iverson said. There are going to be grants available for cities dealing with EAB, Iverson said, “but to access those grants we need to have a plan in place. (See related story on Glenwood plan to map city’s ash trees).
After the discussion, Commissioner Mavis Pattee said she’d like to see the preliminary levy set lower, “to 13% to start.”
“I agree,” Gylsen responded. “If that is a motion I second it,” he added. The motion passed unanimously 5-0.
In other business, the commission approved a parking citation appeal from Steve Rinken because the citation listed the wrong section of the law. It is a mistake that has been corrected, Iverson said.