City council sets preliminary levy at 6.75 percent

The Grand Marais city council met on Sept. 11 to continue budget discussions and set the preliminary levy.

After meeting with department heads and holding a work session, the council set the 2025 preliminary levy at 6.75 percent.

City Administrator Mike Roth said, “The preliminary levy is an early start in our budgeting process. It’s a number that we cannot exceed; we can, however, lower.”

Following the recent work session and prior to the Sept. 11 meeting, the city council reduced the proposed preliminary levy from 11.38 percent to 6.75 percent. It was a reduction in the proposed budget from $1,202,636 to $1,152,636.45.

Roth said the city council will continue budget discussions in the coming months. “We do have intention to look at some of these issues that we discussed in the work session with the hopes that number can change. We also talked about some things that you’re trying to accomplish and how you’re going to use this money.”

The city council recently began discussions about the city’s role and responsibility to increase access or improve roads and infrastructure for development following the denial of the Bjorkberg development on 3rd Street.

In a recent interview with WTIP, Grand Marais Mayor Tracy Benson said she would like to see the city develop “guiding principles” for city road and service improvements. The city is working with engineers with LHB Construction to conduct a preliminary design for the 3rd Street reconstruction.

Another factor contributing to budget discussions is continued long-term financial planning for the new city hall/liquor store building. As of Jan. 2024, the total estimated cost was $8.5 million.

Roth said, “So I’m pleased to recommend this 6.75 percent preliminary levy, and we’ll keep talking about this for December.”

Kalli Hawkins September 16, 2024