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BEMIDJI 鈥� The Bemidji City Council narrowly passed a 10.35% preliminary tax levy increase for 2024 during its meeting on Monday night.

Initially, the proposed levy presented during the meeting sat at 10.65% but was reduced by $22,000 to 10.35% after removing funds that would have been designated for rent on a building for which the city鈥檚 lease ends Dec. 31 of this year.

The decision passed in a 4-3 vote, with Ward 2 Councilor Josh Peterson, Ward 3 Councilor Ron Johnson and Mayor Jorge Prince opposed. Both Peterson and Johnson shared that they would not support a levy increase over 9%.

Prince, while not sharing a number he would have supported, gave the reason for his opposition as concern over the impact of inflation on taxpayers.

鈥淚鈥檝e had a lot of conversations with the public (on the levy increase), and I haven't been getting a lot of positive reception,鈥� Prince shared.

At the beginning of the meeting it was uncertain whether the proposed preliminary budget would pass, as Ward 4 Councilor Emelie Rivera, a supporter of the 10.35% increase, arrived late to the session due to a personal emergency.

If Rivera had not been able to make it, the motion would likely have failed with a 3-3 vote. If that had been the case and a preliminary levy could not have been approved by the end of September, the city鈥檚 levy for 2024 would have reverted to the amount taxed in 2023. Any additional costs, including mandatory expenses, would have come out of the city鈥檚 reserves.

The levy approved on Monday night is preliminary and can be reduced further, but not increased, before the budget is finalized in December.

The 10.35% increase sets the requested levy for the general fund at $7,436,582 for 2024, which actually represents a decrease in the city鈥檚 overall tax rate, continuing the trend from last year.

While calculated for the initial 10.65% increase, the preliminary levy would decrease the property taxes paid by homeowners, with taxes for a $100,000 home decreasing by $3, a $200,000 home by $7 and a $300,000 home by $11.

The preliminary budget passed by the council includes expenses for a new law enforcement officer and two firefighters along with a legal assistant and park maintenance staff. It does not include increased funding for street reconstruction or other items that were discussed during the budgeting process.

Conversations on the 2024 budget have had varying proposed tax levies, with the number decreasing over time from 13% to 11% to the 10.35% increase approved on Monday night.

The Truth in Taxation public hearing tied to the 2024 budget process has been scheduled for 6 p.m., Dec. 4 at City Hall.