Bemidji City Council Discusses 2023 Financial Review, 2025 Levy Increase

The Bemidji City Council has given surplus funding to the police, fire, and parks and recreation departments after hearing the 2023 year-end financial review.

During their work session on Monday, the city council was presented with specific numbers regarding how the city spent funds this year compared to the plan it had laid out at the beginning of the year.

A surplus of $113,000 was discovered, which was split among the police, fire, and parks and recreation departments. However, it was also discovered that the police department spent $300,000 more than what was budgeted.

“The largest factors in the police department having that number there are the PTO payouts,” explained Bemidji Finance Director Donna Coe. “In 2023, it was really bad. To be $300,000 over budget in one department, it doesn’t sit well with me. However, it had to do mostly with the PTO, being that people who are here long enough, twice a year, we allow them to take payouts on their PTO, and that is not budgeted.”

Afterward, the city council continued their discussion around the 2025 budget plans and the best ways to lower the levy percentage that will be set by the end of the year. City Manager Rich Spiczka broke down how ARPA funds can be used to help with the new $200,000 HVAC system for the Beltrami County History Center’s building to keep the levy at only a 6% increase.

“I’d support using our dollars the way in which you’ve outlined them,” said Bemidji Mayor Jorge Prince. “I hear Council Member Thayer’s concern and I share it about what is long-term plan for some of those city-owned buildings, but regardless of what it is, this needs to get taken care of because at some point, there’s another order of this building, be it the historical society or somebody else that’s gonna have to be handled. There’s no way that you could move that [to] somebody else. So for that reason, I will support that.”

Mayor Prince also expressed that he would not support a tax levy increase of over 6% for the city of Bemidji.