Paynesville council adopts 2025 budget, final levy and modest water/sewer rate changes

The Paynesville City Council adopted its 2025 budget and final tax levy after a Truth in Taxation public hearing and approved modest changes to water and sewer charges.

Tar opened the public hearing on the levy and staff reviewed the proposed general fund and enterprise budgets. The packet showed a proposed grand total levy and highlighted major spending categories: public safety (~37% of general fund), public works (~25%), and general government (~21%). The council discussed property valuation increases, salary and benefits breakdowns, and the use of an EAP fund to smooth this year’s budget.

Council approved Resolution 24-33 to adopt Chapter 34 water and sewer rates; the action included a proposed stormwater utility increase from $3 to $4 per month for residential and $6 to $8 for commercial customers. The council then approved Resolution 24-34 to adopt the city budget as presented (with the firefighter salary adjustment) and adopted Resolution 24-35 setting the final tax levy collectible in 2025.

Separately, the council approved pay request number two for shelter construction work to Vas Plumbing & Heating in the amount of $197,300 for work completed in November.

City staff said revenue increases were projected across categories (property taxes, charges for services, state aid) and that the proposed budget represents a larger revenue year compared with prior years. Councilors asked staff to provide more detailed salary and benefit breakdowns and indicated they will monitor the EAP balances used to smooth the budget.

The council closed the hearing and moved forward with other agenda business.