Willmar council sets 2025 preliminary budget and a 9.3% preliminary levy; final vote in December

Willmar Mayor Doug Rees presented a preliminary 2025 general fund budget and asked the City Council to set a preliminary property tax levy that would raise the city’s portion of property taxes by 9.3. The council voted 7–0 to receive the proposed budget and adopt a resolution setting the preliminary levy and the Truth in Taxation hearing for Dec. 2, 2024.

The mayor said the proposed budget increases operating expenses by 3.08% to cover union contracts and market adjustments for about 109 staff, and includes a 10-year equipment certificate payment of $253,156 for a ladder truck, grader and dump truck, plus $450,000 in cash to preserve $1.9 million in anticipated state and federal matching funds for capital projects. Finance Director Tom Odens told the council the levy is allocated roughly 85% to general operations, 10% to street debt and 5% to a future city hall fund. Odens used the Kandiyo County mean home value of $180,200 to illustrate the impact: the city portion of taxes on that house would rise by about $44.68 annually (roughly $3.72 per month) under the proposal.

Council members and staff debated whether to lower the preliminary levy now or set a higher ceiling that can be reduced before final certification. Several council members asked whether the preliminary number was being used as a cushion; staff said the figure represents current best estimates, noting outstanding items such as health insurance premiums and some state aid amounts that are not yet final. Staff also flagged an apparent numeric error in the resolution’s levy amount and said they would correct it before final documents are filed.

The council was told that reductions after the preliminary certification are possible but that cuts could jeopardize the $1.9 million in outside funds identified for capital projects if the local cash contribution is removed. After discussion, the council approved a motion to receive the proposed budget and set the preliminary levy on a 7–0 roll call vote. The council will revisit and may adjust the budget at work sessions and again at the Dec. 2 Truth in Taxation hearing, when the levy will be certified. The council scheduled a budget work session for Sept. 30 and a possible follow-up for Oct. 14 to review capital-improvement requests and lines in the draft budget.