Pelican Rapids council reviews preliminary 2025 budget, preliminary levy up 7.52%

Pelican Rapids city staff presented a preliminary 2025 budget at the Sept. 10 council meeting that, after a series of cuts, still shows a preliminary general property tax levy increase of about 7.52 percent.

Danielle, the city clerk and budget presenter, told the council the draft started at an approximate 50 percent levy increase before ‘‘we got it from 50% down to 7.52’’ through reductions and transfers. She said a large portion of the special levy increase stems from costs associated with the new pool, and that pool operating expenses and uncertain chemical and staffing costs make revenue estimates tentative.

The city plans to offset part of the pool and other costs with one-time transfers, including funds from liquor-store reserves and general reserves. Danielle said staff plan to carry any unspent 2024 pool budget forward to 2025 to help offset operating needs. On staffing, the draft reflects wage increases across departments; a previously proposed fifth police officer was cut from the preliminary budget to reduce costs.

Council members pressed staff on specific line items. Brian Olen, superintendent of Streets and Parks, and other department heads described trimmed capital requests: the budget removes several park and equipment items this year, deferring projects like a dog-park fence and certain park improvements. Danielle warned that some capital cuts will reduce the city’s ability to apply for grant funding tied to those projects.

Why it matters: the preliminary levy must be approved at the council’s Sept. 24 meeting; state law permits the city to lower the levy before the December final but not to increase it. Multiple council members urged continued review of cuts before the preliminary levy vote.

Next steps: staff will present a revised preliminary levy for formal action at the Sept. 24 meeting, with final levy adoption scheduled for December.