Village Sets Preliminary Levy

With the proposed 2025 budget expecting a $32,814 deficit, the Rushford Village Council reviewed the details at the September 17 meeting. Mayor Dennis Overland and Councilor Rick Ruberg were absent, so Acting Mayor Mike Ebner led the meeting.

In the area, cities have approved preliminary tax levies based on various factors, with percentages ranging from 2% to 9.9%. Cities will adjust the figures before setting the final budget in December, but they cannot exceed this percentage.

City Clerk Mary Miner reported proposed receipts of $691,529 and disbursements of $724,343. Costs include various expenses such as health insurance, maintenance shed updating, road chipsealing, a new truck for Public Works, expected contract increases, and potential wage adjustments for city employees. Staff also amended it to include a part-time Public Works maintenance worker at $20 per hour, increasing budgetary costs by $2,600.

“How do we make up the difference?” asked Councilor Bob Hart.

“We increase the levy or cut back on things,” responded Miner. “We have to remember we can lower it, but we cannot raise it after tonight.”

Staff considered a 5-7% increase over the $535,000 2024 levy. A 5% increase would not cover the deficit, but 7% would net roughly a $4,636 cushion.

“You want to be sure you don’t set it too low, and then something comes up,” warned Miner.

Hart initially stated he’d consider setting it as high as 10% preliminarily. However, Treasurer Judy Graham cautioned that residents receiving their preliminary tax bill will see the proposed amount as a 10% increase.

“I don’t have a burning desire to raise anyone’s taxes, but we have to run a business, too,” added Hart. 

“I definitely think we need to be on the higher side before we bring it back down, but 10% is a little scary to people. Eight to nine percent is typically safe, but it doesn’t give you as much safety if something happens,” said Councilor Travis Link.

“Right now, our year 2024 is looking good, and we look like we have our bases covered going into ‘25,” added Ebner.

Miner also noted the city needs to begin putting funds back into Certificates of Deposit for future projects. “Just because it’s there doesn’t mean it has to be spent,” she said.

The council ultimately set the preliminary 2025 budget and tax levy with a 9% increase. It brings the budget amount to $583,150.

In other news, the council heard an update from Community Economic Development Associates’ Community and Business Development Specialist Rebecca Charles. She’s seeking feedback from the council on the village’s current land use plan as it looks at potential land development. One area of interest is agricultural land east of Highway 43 South, just west of the South Rushford residential area. Charles has discussed the matter with Rushford Village Planning and Zoning but stated this is prime agricultural land.

Charles also noted she’s looking at the potential of added amenities for the Root River State Trail head area near MiEnergy headquarters. They include a possible parking lot, snack shop, bike repair area, or something of that nature.

“It’s a possible way for the city to bring income or increase tourism to the area,” she stated. She also proposed the idea of branding to the council. “I know the city’s had a bit of an identity crisis. Is that of any potential interest?” she asked.

Funding for a branding project is available, particularly from the Southern Minnesota Initiative Foundation. It would involve bringing in an expert to do a branding and targeting initiative for an image or brand for the village to collaborate on.

“I don’t struggle with the idea of branding, but I struggle with… what do we do with that brand?” responded Hart. “We feel better about ourselves, but it doesn’t accomplish new growth. We have good ideas, but we don’t seem to be able to implement new ideas.”

“We’re not in competition with Rushford or Peterson. There shouldn’t be individualism on this. It should be done as a group,” said Ebner about the idea.

The council took no action on the ideas. Charles also updated the council that a final Safe Routes to School plan should be coming soon, and the Comprehensive Plan update is nearing completion.

Public Works Supervisor Trenten Chiglo updated the council that the Department of Natural Resources approved the permit for Gilbertson Road repairs. The permit cost is $1,200. The repair involves closing the road in roughly half-hour increments. The village will notify residents before the work begins.