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Caledonia council reviews preliminary options for 2025 budget and levy
Summary
Finance Officer Stephanie Mann presented preliminary 2025 budget and levy options showing levy increases of 8.9%, 10%, 12% or 15%, driven largely by wage increases in bargaining agreements and capital requests including a street sweeper; staff will return Sept. 23 with final preliminary-levy options.
Finance Officer Stephanie Mann told the Caledonia City Council on Sept. 9 that preliminary levy proposals for 2025 would raise the property tax levy by 8.9%, 10%, 12% or 15%, depending on which package the council selects.
Mann said the majority of the projected increase is driven by wages set in collective bargaining agreements and by capital purchase requests, most notably a proposed street sweeper. All of Mann’s budget options include a 3% increase to special funds, including the library, the fire department and the Economic Development Authority.
Mann noted a legal limitation in the levy process: once the council sets a preliminary levy it may reduce that figure later but may not increase it. Council and staff did not set a preliminary levy at the Sept. 9 meeting; Mann and staff will continue refining numbers and will present levy options at the council’s Sept. 23 meeting.
The council did not take a vote on the 2025 levy on Sept. 9. Further decisions — including any choice among the percentage increases and which capital purchases to fund — will be made after staff provides updated figures and options at the next meeting.
