Bemidji City Council debates tax levy for 2023

Nicole Ronchetti, The Bemidji Pioneer, Minn.
·4 min read

Aug. 9—BEMIDJI — In an at times tense discussion, the

Bemidji City Council

broached the topic of how much to increase the tax levy to meet the city's various needs while inflation continues to rise and put pressure on municipal finances.

In its Monday, Aug. 8, work session, the council was given a presentation by City Finance Director Ron Eischens on plans for a 2023 city budget that included a recommendation of increasing the city's tax levy by 5%.

This number, when taking into account new construction, would result in a net levy increase of 4% and would bring in around an additional $360,000 to the city.

However, this number doesn't take everything into account, including the need for park improvements, staffing needs in the police and fire departments, and the increasing costs of inflation, which are already hitting the city.

"I think most of us realize that currently we are projected to run a deficit budget this year," said Mayor Jorge Prince. "That's a pretty serious concern with everything that's going on."

Eischens told the council that the city is projected to run a deficit of $100,000 to $200,000 for 2022, which will end up being pulled from the city's undesignated reserves which currently stand at $231,000.

"Everybody is going through the negative effects of inflation, every household is making the same kind of decisions we're trying to make," Prince said, "these are things that also need to be considered."

There was some positive news during the session, notably that it was possible to reduce the deficit budget for the Sanford Event Center from $450,000 to $308,000 following

the change in management companies.

Because ASM Global promised a first-year deficit of just under $200,000, there was also discussion on reducing the deficit allowance even further and using those funds to meet other city needs — particularly those related to public safety.

Not included in the initial budget or tax levy for 2023 were the staffing requests made by both the city's police and fire departments.

Bemidji Fire Chief Justin Sherwood explained the need for more full-time firefighters to help respond to calls, noting that currently, the department is very short-staffed.

"We're sending out an average of 1.8 firefighters on a call," Sherwood said, "They shouldn't be going on calls, structure fires by themselves ... I'm really concerned about the safety of my staff."

Sherwood reiterated a previous request for seven full-time firefighters but understood that the cost would be difficult to fund in an already tight budget and that he would appreciate even just one additional firefighter.

The police department also had a request for an additional officer for the Paul Bunyan Drug Task Force to help address the region's struggles with overdoses and opioids.

"Crime and violence have got to be No. 1 for Bemidji. It affects our tourism, it affects our businesses, it affects our organizations that are overwhelmed" said Ward 1 Councilor Audrey Thayer, "those are the things that I feel are extremely important right now."

How to include those costs in the budget, however, was another discussion. Some councilors believed that the goal should be to reduce the tax levy increase below the recommended 5%.

"It's not time to go on a shopping spree," said Ward 2 Councilor Josh Peterson. "We just have to go down to the bare bones and stick to our priorities."

Others endorsed the 5% since when the levy is finalized in December it can be lowered from the chosen number but not increased.

"I'm not against saying we should set it just a little bit higher because we can't predict what inflation is going to set us up for at the beginning of next year," said Ward 4 Councilor Emelie Rivera.

As the discussion closed, the council came to the conclusion to keep the preliminary levy at 5%, and recommended that the budgeted Sanford Center deficit be reduced further to allow those funds to support a different, but still undecided, need.

"Our costs have gone up in the past year, and we're doing our darndest not to pass it on, but we can't keep on kicking the can down the road," Rivera said.