By Tim Douglass

tdouglass@pctribune.com

Glenwood City Commissioners last Tuesday adopted a 2025 budget that will mean a 13 percent levy increase over the 2024 levy.

The commissioners unanimously approved the 2025 proposed budget and levy after conducting a Truth in Taxation hearing that attracted only one city resident.  

City property owner Cody Bosek was the lone speaker at the public hearing and provided commissioners with a packet of information on median income, median house values and other tax information comparing Pope County and Glenwood to other area counties and cities of similar population.  

“Over the last five years the taxes on my properties have increased by about 300%, Bosek said. “Looking at the data I have provided to you the Median property tax in Minnesota is $2,098.  At this point we have not only caught up to the state average, we have far surpassed it,” he added.  “As far as inflation goes, we the taxpayers have also suffered from inflation and I have not received a 300% increase in my pay to make up for it.”

Bosek also talked about housing values, but said he was more concerned that all levels of government, including the city and the county need to see the plight of the property taxpayer. 

“Just looking at our county’s statistics on the U.S. Census Bureau, the median income in Pope County is $71,000,  After taxes that is a take home of around $50,000,” Bosek explained.  “If other people’s property taxes are like mine that means that 7% of our take home wages are being allocated to property taxes and levies.  That is approaching 1/10th of our yearly usable income.  That is obscene,” he added.  

He said it suggested to him that the city and the county have either drastically mismanaged its funds, expanded government employment, “or just bit off more than it could chew in growth projects.”  He said he was at the meeting to call for a “drastic tightening of the belt” just like taxpayers have had to endure over the last decade.  He also stated that he was disgusted that at time when property values are beginning to drop, taxes are increasing.  “This is a double slap to taxpayers,” he said.  

Commissioner Mavis Pattee told Bosek that the city does take the budget and levy very seriously.  “It is something we watch very closely,” she added.

Commissioner Todd Gylsen said the city does generate revenue from other sources besides taxpayers, including the Grog Shop and some of the enterprise funds.

“You say we have too many projects in the barrel, but we have a lot to take care of and we save taxpayer money by maintaining a schedule to fix roads and utilities,” said Commissioner Neil Haynes.  “It’s cheaper to try to keep up with streets than to allow them to deteriorate,” he said.  He said that the city’s police department and street projects take up a big chunk of expense.  

Gylsen also reiterated that the 2nd street road and utility project had to be delayed for a year.  “Road and sewer projects are extremely expensive,” he added.

City Administrator Dave Iverson explained that the city is land-locked and there are not a lot of high-dollar residential properties within the city.  “Our hosing valuation is low and so the taxes generated from housing is also low.  Expenses are growing and we don’t have the growth within the city of generate automatic increases in revenue.  “It’s a challenge,” he said.

Iverson said city staff went through the budget with a “fine-toothed” comb, but emphasized the city does not have a lot of commercial or industrial property for taxes and “I’d love to have more lake shore property.”  He said holding an increase to 3% to 5% would mean the city would be “going backwards.”

Pattee thanked Bosek for attending and commended his research on local taxes. Bosek also thanked the commission for “hearing me out.”

After the hearing was closed, the commission voted unanimously to adopt the 2025 final tax levy and budget with the 13 percent increase in the levy.   That action had to be approved and provided to the county by the end of December.  The resolution setting the property tax levy for the following amount: General Fund, $4,379,138; Bond4 Indebtedness, $107,716; for a total levy of $2,486,854.

In other business, the commission:

• Approved the first payment of $95,346.56 to Ferguson Brothers for the 2024 local street improvements.

• Approved the 2025 Workers’ Compensation insurance coverage package payment in the amount of &78,549.

• Approved the 2025 agreement between the city and Hometown Planning to perform municipal planning and zoning services.

• Approved  allowing Kortni’s Kloset to provide life jackets at the city beach.  The purpose of “closets” is to supply anyone in need of a life jacket one to use or keep.

• Authorized City Administrator Dave Iverson to obtain quotes and bids for services to be paid for by the American Rescue Plan Act (ARPA).

• Denied a request from Barb Schliesman that she not be charged for sewer utility until her $2,000 deductible was paid off from her last sewer backup incident.

• Approved a resolution establishing the fee schedule and expense allowance for 2025.

Established  the Glenwood Lakes Area Chamber and Welcome Center at 7 1st St. NW in Glenwood as the official polling place for 2024 and beyond.  It can be changed by resolution if the polling place becomes unavailable.

• Approved a resolution transferring funds of $20,000 from the Refuse Fund to the General Fund; $40,000 from the Liquor Fund to the General Fund; and $20,000 from the Liquor fund to the Lakeside Fund.

• Approved 2025 business licenses for Village Inn, $3,200; Crazy Reds Car Wash, $100; West Central Sanitation, $300; Gas Mart, $100;  Cenex,$100; Tom’s Market, $100; Lakeside, $3,200;  AJ’s Bar and Grill, $3,200; and Waska Village, $350.

• Approved a gambling permit for Knights of Columbus Council 5727 to conduct a raffle on Feb. 16 at Sacred Heart Church in Glenwood.