Pipestone County board advances preliminary 2025 budget, proposes 7.33% levy increase

Pipestone County commissioners on Sept. 24 approved a preliminary 2025 budget that would increase the county levy approximately 7.33% from last year and set the Truth in Taxation hearing for Dec. 3.

Finance director Steve (presenting) said staff adjusted revenue and spending lines, removed a $250,000 placeholder to lower the proposed levy, and recommended using existing reserves for certain one-time expenses rather than increasing the levy further. He told commissioners the county’s general-revenue unallocated reserves stood at about $4 million (transcript discussion), and he proposed relying on those reserves when appropriate rather than borrowing or levying immediately.

The budget presentation included department-level adjustments: ambulance replacement costs will be covered from a department reserve (about $230,000 set aside), and health-insurance costs are projected to increase on average about 4.1%. County staff recommended a roughly 4% increase in the county contribution so employees’ out-of-pocket shares do not rise. Commissioners expressed support for absorbing the spread as a recruitment and retention measure.

Commissioners discussed assumptions for interest income, union step and general-pay increases (the budget reflects a 4% general increase in pay plans for 2025 and step increases where applicable), and several departmental corrections that trimmed the draft levy from earlier higher estimates. The board’s motion to approve the preliminary budget and levy passed by voice vote; the action preserves the board’s ability to change the levy downward before final approval but not to raise it beyond the preliminary figure.

Next steps: the board set the Truth in Taxation meeting for Dec. 3 at 7:00 p.m., and staff said a final levy and budget vote will occur at a later board meeting. The preliminary approval does not commit the county to specific reserve draws until the final budget is adopted.