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Crookston City Council adopts preliminary 2025 tax levy, orders RFP for garbage service

Crookston City Council · October 1, 2024
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Summary

The Crookston City Council adopted a preliminary 2025 tax levy of $4,452,671 and approved a preliminary general fund budget after hearing staff projections that reduced net tax capacity and options to avoid funding operations from reserves. Council directed staff to issue an RFP for garbage collection in October.

The Crookston City Council voted to adopt a preliminary 2025 tax levy of $4,452,671 and a preliminary general fund budget, after staff told members the city’s net tax capacity fell and outlined options to avoid drawing on reserves.

Speaker 5, a city staff member, told the council the city’s net tax capacity had “gone from 4.962 million” to “4,850,000.00” because of recently filed homestead exemptions, reducing the base used to calculate the levy. He said the city had assumed $250,000 in investment interest to help fund next year’s budget and, “As a not to exceed the proposed levy is $4,452,671.”

The staff presentation framed the levy as a “not to exceed” preliminary figure required by statute and urged caution about relying on reserves. “It is not a good practice to fund operations from reserves,” Speaker 5 said, and added the council could direct staff to alter assumptions as the budget process continues.

Council members focused much of the discussion on solid-waste service options and operational implications. Staff reported 75 households had signed an interest list for a canister-based collection pilot and that a landlord representing roughly 50 rental properties had indicated all his units would use the service, figures that vendors said could make an outside contract viable. Speaker 5 said outsourcing could avoid the upfront cost of purchasing bins and that billing would still be handled through utility bills.

On timing, Speaker 5 said he would present an RFP to the council in October to gather market proposals and expected to receive bid numbers in November. He also noted an estimated $40,000 equipment expense (a truck lifting-arm upgrade) that could be avoided under an outside contract and that the budget contains $100,000 for trash canisters and $300,000 for the swimming pool project.

The preliminary budget includes a $4.45 million levy figure described by staff as a worst-case scenario; Speaker 5 said police-wage estimates were reduced in the proposal based on the department’s union estimate. Council members asked staff to confirm grant deadlines and outreach for community programs such as Golden Link and Tri Valley; staff said those requests were being tracked and that some applicants had not yet resubmitted required budgets.

The council completed a roll call and approved the resolution adopting the preliminary levy and budget. Staff will return with RFP details and anticipated numbers in subsequent meetings, and the council set a public budget meeting date as part of the resolution process (date not specified in the record).

Votes and next steps: the council approved the preliminary levy and budget in a roll call vote; staff will issue an RFP for garbage services in October and expects proposals in November.