As I write this column, I know I am challenged to find an interesting way to talk about City finances. I may not have the most interesting angle on its finances, but I’m pleased to share the numbers with you and am convinced that our City is in a good financial position.
First, here is some of today’s news. The City Council did pass a tentative 2025 budget at the September Council meeting. The budget will be finalized at the December Council meeting so I say “tentative” because state law allows the budget to go down between now and December, but not to go up. That budget reflects a 9.17% increase over 2024. I talked about inflation taking a bite out of our budget, and much the same as you’re experiencing at home, everything the City buys has gone up in price too. The Council really struggled putting this budget together because no one wanted that kind of an increase. But their only choice to take proper care of matters was to pass this budget or to “kick the can down the road” and that simply puts the expense off until next year or later. The Council’s decision to take care of things now rather than to putting them off is the most responsible.
At this Council meeting the Council also decided to purchase a used snow plow truck (2004 Sterling) and to replace the boat dock at the lake with a heavier duty model. They also gave permission to erect a large flag pole and U.S. flag on the east end of town along Highway 14 paid for by the Legion and other generous donors.
Then, as promised, here is a quick snapshot of financial considerations during the time I served as Mayor beginning in 2016. Each year since that time the City has balanced its budget. That year (2016) the total levy to taxpayers was $1,152,110. The total in 2023 was $1,643,010. During that time, the City’s General Fund Expenses went from $4,100,460 to $4,589,460 in 2023. On average during that eight year period of time those expenses increased by a little over 1% per year. And as you know, the City did not stand still during this time.
Then too, I want to give you a brief look at the City’s financial positions. In 2017, the City’s financial holdings were $7,310,374 and at the end of 2023, it was $11,567,718. In 2017 the PUC’s holdings were $3,596,429 and at the end of 2023, our holdings were $4,761,361. These numbers do not include special road and sewer funds, hospital funds, and other smaller designated holdings which increases the City’s total holdings significantly.
Finally, let’s take a look at the City’s debt. In 2016, the City paid a debt levy of $679,260. In 2023, our debt levy was $767,850. Those levies are factored into the City’s budget each year and reflect total debt of $15,458,000. Those levies are paying for various street and infrastructure improvement projects and our aquatic center.
We’ve been blessed and are fortunate to have done as well during these eight years. COVID actually helped our financial position. And keep in mind that during this time the City built and paid for the Event Center.