The city of Braham approved its preliminary budget for 2025 at a special meeting held Tuesday Sept. 17.
And the good news for the city was that, unlike in recent years, the proposed budget increase is small, and it met with no acrimony.
Interim city administrator Kevin Stahl presented the proposal, and he noted before he started that currently the city is at 44% for its proposed expenditures for 2024.
“We’re expecting to have money left over at the end of the year,” he said, adding that the savings hopefully would be used to restore money to the city’s reserves.
Stahl noted that the city will be looking for a 3% levy increase in 2025. He said that number matches the 2.97% increase in inflation over the past year; this levy also assumes a 15% increase in insurance costs and a 13% increase in health insurance costs.
“I was told that the more realistic numbers for those are around 7%,” Stahl said. “So when we present the final budget [in December] we can either maintain a 3% levy and increase our reserves … or we could choose to lower our levy.”
This preliminary levy only sets the maximum levy for the following year; in December council will determine the city’s final levy, which may decrease but can go no higher.
Stahl noted that the proposed levy will see the city’s general fund payments increase by 2%, while debt service would increase 1%.
Mayor Nate George said he felt a 3% increase is “fantastic.”
“I think that’s right where we want to see it, especially in keeping up with inflation and the rising costs of operating the city in general,” he said. “I think that keeping it at that level, especially considering the situation we were in, speaks volumes about the recovery that we’re seeing in our finances.”
He also was strongly in favor of rolling any savings into the general fund, which Stahl said is his goal as well.
“Having more in the reserves makes the budget a little more healthy,” Stahl said. “I also would like to fortify public works a little more so we can handle issues that come up — a water main breaks or something like that.
“We need to look a little forward more than just looking at today’s problems.”
Council member Seth Zeltinger also praised the preliminary budget.
“I think a 3% levy — and that’s the ceiling, so it could be less — while we’re growing the reserves, that’s a nice job,” he said. “I remember what that ceiling number has been the last three years; 3% feels pretty good.”
George agreed, adding, “Hearing the word ‘surplus,’ that’s an awesome word to throw out there. I’m excited to see that.”
The budget was approved unanimously by the four members in attendance; council member Bob Knowles was unable to attend.
Stahl said he hopes to place information on the city’s website that will allow residents to determine the tax rate for their particular home based on the levy numbers.
Braham also scheduled its Truth in Taxation meeting for Tuesday, Dec. 3 starting at 6 p.m. That is where the final levy for 2025 will be officially determined.
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