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St. Peter council adopts preliminary 2025 levy, raising city portion about 6.9%
Summary
The St. Peter City Council on Sept. 22 adopted a preliminary 2025 levy (collectible in 2026) that increases the gross levy roughly $297,000 (6.9%). Staff said most of the change reflects debt service on a new city hall plus annual equipment certificates; a $250,000 home’s city portion would rise about $17.71 annually.
On Sept. 22, the St. Peter City Council voted to adopt a corrected preliminary 2025 tax levy (collectible in 2026) that increases the city’s gross levy by about $297,000, or roughly 6.9 percent.
City staff member Perry, who presented the proposal, told the council the total preliminary levy is $4,614,000 and that a correction in the published resolution changes one line to $2,772,624 per the tax theory sheet. Perry said the recommended package trims the general fund by about $152,000 (a 5 percent reduction) while increasing targeted levies, including a $50,000 increase for the library and larger debt-service amounts tied to capital financing. “Despite the increase in overall levy, we are actually tightening our belt within the general fund by 152,000 or 5%,” Perry said.
Perry explained the levy increase is driven in part by debt service related to the purchase and financing of the new city hall; staff flagged a conservative first-year debt-service estimate of $350,000 and an equipment certificate of about $713,000. He also said the city recently completed a ratings call that produced a “double A minus with a stable outlook,” which staff said will produce savings over the life of the loan. “We are going to see some savings — $600,000 over the life of the loan, $23,000 a year,” Perry said.
Council members who spoke said they supported the long-term rationale for the investment. Council Member Brad thanked staff and noted the levy increase is “mostly attributable to the purchase of the new city hall,” arguing the decision was taken with an eye toward long-term savings. Council Member Carrie said the council has tried to keep operations separate from capital and to maintain reserve targets amid federal and state funding uncertainty.
Staff showed estimated taxpayer impacts: a $250,000 home would see about a $17.71 increase in the city portion of its property tax bill under the preliminary levy, Perry said. He added the budget includes roughly $488,000 drawn from reserves for one-time capital spending and stressed the council’s goal to manage operating reserves between 35 and 50 percent of fund balance.
The council moved and approved the corrected resolution by roll call. The council placed the required public review for the final levy on its Dec. 8 meeting calendar; that session will serve as the truth-in-taxation review before a final levy adoption in December.
Votes, next steps and context: the resolution adopting the preliminary levy passed on a roll call vote; the council will hold its formal levy review on Dec. 8 and may adjust the final levy at that time. The full budget documents and an impact page are included in the meeting packet for residents to review.
