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North Branch City Council members were provided optional budget information in order to take action setting next year’s levy December 10. The budget and levy for 2025 must be designated by the end of December at the latest. 

Staff developed scenarios that included increases and impacts for a 12 percent, 15 percent and 20 percent hike.  Lengthy discussion followed.  Reductions from past meetings on the budget have been enacted, including waiting on the police promotion until next year and not acting on an officer hire until the middle of 2025 to save six months’ cost.  Technology expenses are being scrutinized and paid subscriptions and licensing costs and renewals are a focus of new city administrator Matthew Hill.  He said council cuts were found in this area since the last budget work session,  and staff will monitor these bills, and do “what’s best for citizens of North Branch.”

Out of the clear blue, Council member Peter Schaps made a motion for a 9.5 percent increase.  Council member Kelly Neider seconded it.

Mayor Kevin Schieber commented that it seemed like Schaps was just going for a number less than 10—and asked for specifics on what this sum eliminates.  

Council member Schaps responded he had nothing specific in mind, adding council can address the line item appropriations for the 9.5 increase,  in the new year.

Exiting elected member Neider, who did not file for re-election, stated she doesn’t see the need to designate expenses. 

She asked staff if the council has the authority to allocate a lump sum and say to department heads “do what you want with it.”  This line of inquiry was unexpected, because Council member Neider had just spent the first part of the meeting dissecting line item expenditures proposed in department budgets.

Mayor Schieber commented that he would oppose Schaps’ motion, without knowing what’s getting cut and what remains.

Council member Travis Miles said he opposes the random 9.5 percent because  council has to be willing to “...do something to get the city out of years of lights-on only budgeting.”  The practice of ignoring North Branch’s deferred needs are just going to put the city in a deeper hole, he felt.

The 12 percent estimate shows tax revenues of $6,608,000. To achieve the 9.5 percent in Schaps’ motion  there would have to be another $300,000 eliminated.

Council killed the 9.5 percent motion 2-3.  

Mayor Schieber motioned for a 12 percent hike in 2025, which equates to various impacts to individual parcels depending on your taxable valuation.  Your property tax may increase more than 12 percent and/or decrease.  This was approved 3-2.  The mayor stated that the budgeting is “not easy” and that he appreciated all the comments and observations provided.

In other action, the council gave Neider a plaque in recognition of her eight years on council.

And, to clarify misstatements made at previous council sessions concerning the water and light utility, Mayor Schieber handed out an explanation on the legal status of “Enterprise Funds.” 

Enterprise, or special districts like a hospital district, a water or electric commission, sewer funds, etc. are designated when they are self-supporting and  revenue is generated by use. 

These funds are meant to be “break even.” 

Arguments that the electric utility never should have been sold,  because it had the potential to “make” buckets of money for the city have no basis.

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