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BEMIDJI 鈥� The Bemidji City Council has continued its debate on the tax levy for 2024, discussing the feasibility of a 9.57% increase during its work session on Monday.

The proposed 9.57% increase is lower than the 10.35% preliminary levy the council set in September, which is the highest the number can go before it is finalized in December.

With this number, the levy for the general fund would be set at $7,327,875, an increase of $712,246 from 2023. While the amount of the proposed levy has increased, the overall tax rate for the city would decrease by 0.83%, continuing a trend that started last year.

Some councilors shared that they wanted to see this number decrease further, with Ward 2 Councilor Josh Peterson and Ward 3 Councilor Ron Johnson saying they鈥檇 support a 7.5% increase. Both had previously shown support for a number below 10%.

鈥淎fter looking at my property taxes, I鈥檓 thinking we could still do (what we need) for about 7.5%,鈥� Peterson said.

Other councilors felt uncomfortable with placing the increase too low and advocated for keeping the 10.35% previously discussed.

One of their primary concerns was the potential for the Sanford Center to exceed its projected operating loss, which $188,000 is currently set aside for, particularly since it hasn鈥檛 updated its financials with the council since August.

鈥淲e don鈥檛 have any solid numbers (regarding the Sanford Center),鈥� explained Ward 4 Councilor Emelie Rivera. 鈥淲e didn鈥檛 receive a plan for next year so we don鈥檛 know what they need 鈥� I feel like we鈥檙e really putting ourselves at risk if we go lower than 10.35%.鈥�

Even if not designated for the Sanford Center, Rivera and Ward 1 Councilor Gwenia Fiskevold Gould shared that they would support the approximately $60,000 that would be included in a 10.35% levy going toward other needs, such as street improvements.

The councilors who wanted lower than 9.57% shared where they thought the money could be taken from, with Johnson sharing that he鈥檇 like to examine whether the city could cut the legal department and contract those services out to decrease costs.

This proposal met opposition from others on the council, who advocated in favor of the legal department, their dedication and work and the department鈥檚 partnering role with law enforcement in public safety.

鈥淚鈥檝e heard councilors say public safety is really important. Our legal team is a part of public safety,鈥� Rivera said.

Fiskevold Gould backed up this point, noting that the ability to prosecute people who commit crimes is an integral part of maintaining a safe community.

Rivera suggested that if the rest of the council wanted to decrease the levy further, it could examine cutting costs directly tied to the council, such as its budget for travel.

Underneath these discussions on budgeting, each council member acknowledged that they were considering the levy鈥檚 impact on individual property owners.

While a 10.35% levy increase, and a 9.57% even more so, represents a decrease in the city鈥檚 tax rate and on paper could mean lower property taxes for homeowners, a number of factors make the actual math more complicated.

鈥淚t鈥檚 not as simple as saying your tax rate went down so your taxes go down. It鈥檚 more complicated than that,鈥� shared Ashley Felderwerd, a manager at Abdo Financial Solutions aiding the city in its 2024 budget process.

When initially calculated at a 10.65% increase, the levy would have decreased the property taxes paid by homeowners if their property had remained at the same value, with a $100,000 home decreasing by $3 and a $200,000 decreasing by $7.

But Mayor Jorge Prince shared his concern that very few property owners have seen their homes stay at the same value, and worried that saying the city鈥檚 property taxes would decrease was disingenuous.

鈥�(Property owners) have seen an increase. If your property was worth $100,000 a year ago and it鈥檚 still $100,000, that鈥檚 few and far between,鈥� he said. 鈥淚鈥檓 very concerned if people say this is going to lower taxes when the majority of citizens won鈥檛 see that.鈥�

Rivera shared that significant increases in property values are something she鈥檚 aware of, with her own home among those affected.

鈥淢y home value is at $192,800, it鈥檚 gone up over $50,000 in the last three years, when it went up just $5,000 in the previous four years. We鈥檙e all feeling that, but I can tell you that if I look at what I paid for the city鈥檚 portion (of property taxes), that increase does not exist,鈥� she said. 鈥淲hat did increase for me was the (other property taxes).鈥�

Rivera shared her concerns that if the council supported too low of a levy increase it would place it in a precarious position without making a significant decrease to property owners鈥� taxes.

鈥淚 don鈥檛 see the impact from all of this to be significant enough to where quibbling about $60,000 is going to make more than a couple of dollars less per month difference,鈥� she said. 鈥淚鈥檓 really hopeful we can look at what we need. If we don鈥檛 set a levy that meets the actual needs of the city, we鈥檙e being shortsighted.鈥�

Since this was a work session, the council did not make any formal decision related to the budget. A vote on the final tax levy is set to be held during its meeting on Monday, Dec. 18.