Council to examine 2020 fiscal possibilities

Jun. 23--BEMIDJI -- A 4.6 percent increase in Bemidji's property tax levy could be on the table in 2020.

However, there are several variables still at play, and that increase could be less.

On Monday, the City Council will get a full briefing on what to expect in the 2020 budgeting process during a financial management work session.

According to documents, the city could see a revenue increase of $405,426 and expenses amounting to $713,588.

If those estimates were to hold, the total budget increase would come to $308,162, resulting in a rise in the levy of 5.3 percent. However, when accounting for new construction values, the estimated levy increase comes to 4.6 percent.

Increases in personnel costs, reflective of union contracts previously approved by the council, reflect one of the largest adjustments to accommodate in a potential budget, coming to $610,888. These costs also include the hiring of an additional street department employee and the new community development director position.

Where the levy increase could fluctuate rather substantially is in the Bemidji Police Department. Documents show the agency is seeking renewal for an $80,000 grant for auto theft prevention and a $66,750 grant for the state's Toward Zero Death program.

If both grants are renewed, the 2020 levy increase would be 2.5 percent less. However, the city will need to prepare if they grants aren't awarded.

Another matter to be discussed Monday is financial planning for the city's expansion and its many buildings. In documents, City Finance Director Ron Eischens noted that an estimated $33,600 would be needed to establish a new facilities manager position at $33,600, to provide general maintenance for the city's various buildings.

Additionally, in consideration for the city's annexation of Northern Township land, potential budget requests in 2020 include a motor grader, with the potential of a new police officer coming in 2021, too.

Other expenses factoring into the budgeting process include about $15,000 as part of a new agreement with Northern Township for Joint Planning Board funding, $10,000 in operating costs at the Carnegie Library once it's finished and an estimated $8,000 to operate Minnesota's Presidential Primary.

On the other side of the discussion, the city will see an increase in revenue of $161,426 as a result of the Legislature increasing Local Government Aid. Additionally, the city is expected to see an increase in utility and cable fees with annexation, along with a rise in street maintenance dollars from the state.

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