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BEMIDJI 鈥� The Bemidji City Council convened on Monday for a joint meeting with the Bemidji City Charter Commission and for a quick work session to finalize the resolution for approving the preliminary tax levy for 2025.

A preliminary tax levy sets the maximum amount the city can collect in taxes for the upcoming year, allowing for adjustments later but not exceeding the approved limit.

The levy was discussed at length during the council's Sept. 17 meeting, where a tax levy resolution was debated initially proposing a 10.3% increase. Councilors were divided on whether to set a higher levy for flexibility or start with a more conservative rate.

With the city鈥檚 audited financials still incomplete, some council members expressed concerns about moving forward without a full financial picture. The decision was postponed until this week鈥檚 session to allow for further deliberation.

During Monday's meeting, City Manager Rich Spiczka provided updates on the city's financial situation, adding that some numbers were skewed due to incomplete 2023 year-end transfers and the lack of finalized audit data, however, it offered the council a basic overall picture of the financials.

When discussing the actual levy amount, Ward 3 Councilor Ron Johnson expressed discomfort with setting it too high initially.

鈥淚f you don't believe you're going to support anything close to 10.3%, I don't think it's smart to set a preliminary levy to do that,鈥� he stated, preferring a rate closer to 7.9%.

Meanwhile, At-Large Councilor Audrey Thayer supported setting the maximum rate, noting, 鈥淭his is setting the ceiling at maximum, at the max level, which means we can go below that later.鈥�

鈥淢y cap is 9.9%," Ward 2 Councilor Josh Peterson said. "I am ideally looking at 8.5%, maybe 7%. But just for preliminary purposes, I would be comfortable with a 9.9%.鈥�

The council moved forward with a motion to approve the resolution to set the preliminary tax levy for 2025 at 9%. The motion passed with a 4-3 vote with Peterson, Johnson and Mayor Jorge Prince voting against.

This established the maximum levy increase the council could consider, meaning the levy can be reduced later during the budget process but not increased beyond the 9% ceiling.

The specific dollar amount associated with the levy will be calculated and added to the resolution later once more finalized numbers have been determined.

During the joint portion of the meeting with the charter commission, City Attorney Katie Nolting provided an overview of the procedures for amending the city鈥檚 charter under Minnesota Statute 410.12. Nolting explained that there are three main ways amendments can be proposed: by voters, by the council or through an ordinance.

The first method involves voter-proposed amendments

鈥淭he first way you can amend the Charter is by a petition by the voters. That requires 5% of the total votes cast in the state's general election by signing a petition for a specific amendment to the Charter,鈥� Nolting explained.

These petitions must be submitted 17 weeks before the general election and are reviewed by the Charter Commission, which has 10 days to make recommendations.

The second method allows the city council to propose amendments. In this case, the proposed changes must be submitted to the Charter Commission for review.

鈥淭he Charter Commission then has 60 days upon receipt to review the proposed amendments ... they have the right to actually extend it an additional 90 days to review any of those amendments,鈥� Nolting continued.

Regardless of whether the Charter Commission supports the amendment, the council retains the right to vote and place it on the ballot, whether supported by the Charter Commission or not.

The final method is through a charter amendment by ordinance, which involves a more streamlined process.

鈥淭his is not your typical ordinance amendment," Nolting explained. "By statute, this has a public hearing and one vote by the council.鈥�

After a public hearing is held, the council must vote within 30 days. If passed unanimously, the amendment becomes effective after 90 days, unless a petition is filed by voters to trigger Nolting added that it must be 鈥渟igned by 5% of the voters registered in the city or 2,000 registered voters of the city, whichever is less.鈥�

She emphasized that all amendments require public hearings with at least a 30-day notice to ensure transparency and public involvement in the process.

Though no formal decisions were made on any amendments during the session, the meeting provided clarification on how the city鈥檚 charter will be updated moving forward.