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Osakis council amends 2025 budget, approves preliminary 2026 budget and a 5% levy increase
Summary
Acting mayor and council approved amendments to the 2025 budget, passed a preliminary 2026 budget and approved a 5% preliminary levy; members noted a steeper-than-expected insurance increase and transfers from city enterprise and reserve funds to balance budgets.
Acting appointed mayor presided as the Osakis City Council voted to approve an amended 2025 budget, a preliminary 2026 budget and a 5% preliminary levy at its Sept. 8 meeting.
Angela, who presented the budget materials, said the council’s August budget session identified a shortfall in 2025 that the city addressed by reducing expenditures, transferring funds from savings and taking $20,000 from liquor-store proceeds. For 2026, staff proposed a 5% levy increase and a $15,000 reserve draw to balance projected revenues and expenditures.
Angela told council the city originally assumed a 6% insurance-cost increase in the draft but has been notified of a 12.25% increase. "It's actually going up 12.25%," she said, and staff adjusted expenditures to reflect an approximate $4,000 difference from the earlier estimate.
Council moved and seconded motions to approve the amended 2025 budget and to set a 5% preliminary levy for 2026; both motions passed after recorded votes that included one recorded opposition.
Why it matters: adopting a preliminary levy is required for the county tax-notice process and locks in a ceiling the city can lower but not raise before final levy adoption in December. Staff emphasized the figures are preliminary and can be revised ahead of the statutory final levy deadline.
Next steps: staff will finalize levy paperwork to submit to the county by the end of September and continue budget refinements before the council's December final budget and levy hearing.
