Hibbing sets preliminary 2025 levy at 9.35%
By Marie Tolonen for Mesabi Tribune (published Sep 10, 2024)
HIBBING — The Hibbing City Council continues to work on reducing the amount of the 2025 city property tax levy.
Last week the council certified the city’s preliminary 2025 levy at $11,057,316 during its regular meeting, which represents a 9.35% increase from the current levy, according to City Finance Director/Treasurer Sheena Mulner.
Mulner pointed out the council has the ability to lower the amount of the levy, but it cannot go up before the final levy is set.
Hibbing City Administrator Greg Pruszinske last month told the Mesabi Tribune via email the goal for a final budget and levy is “less than 5%.”
The trend in Hibbing over the past few years has been for the council to pass a preliminary budget and levy increase in the 9% range in September only to pare it down closer to 5%. Last September, for example, the preliminary number was 9.9% but in December, the council approved 5.97% increase.
The preliminary 2025 budget approved by the council on Wednesday calls for an increase of $603,189, or 2.7% in General Fund spending, according to Mulner.
“The largest percentage of this increase is for salary and benefits,” Mulner told the council.
Mulner said the preliminary budget includes a 2.5% contracted cost of living increase, an increase in base pay and a 20% increase in medical insurance increase. She said a three-year cap with Blue Cross ends at the end of 2024. After reviewing claims data with the city’s agent, proposals for insurance are anticipated to come in significantly higher. Staff continues to work with the city’s agent on plan options in an effort to lower insurance costs.
The largest component of the levy is for the General Fund. The General Fund preliminary levy request is $7,112,050, which is an 8.54% over last year’s General Fund levy, according to Mulner.
Mulner said expenditure increases continue to outpace revenue increases. She said city staff continues to look at fees and services, but noted that makes up a small portion of revenues.
LGA is the largest source of revenue and is increasing for 2025 at $12,963, or .14%, according to Mulner.
“Since LGA makes up 40% of the General Fund revenue and financing sources, small increases really impact the bottom line on the General Fund levy, she said.”
Other increases included in the preliminary levy include Post Employment Benefits (OPEB) at $210,000, and Capital funds to improve buildings and equipment at $239,865, according to Mulner.
The preliminary budget calls for a decrease in the debt service levy and permanent improvement levy of $57,960 and $6,493, respectively.
The council took up the following other matters at its September 4 meeting.
• Approved the 2025 preliminary levy for the Chisholm-Hibbing Airport Authority at $821,000, which is a 3% increase over the current levy. The levy is split approximately between taxpayers in the communities of Chisholm and Hibbing, 15% and 85% respectively. The amount of the levy can be decreased before the final levy is approved in December.
• Approved the 2024 payable 2025 preliminary Hibbing Housing and Redevelopment Authority (HRA) preliminary levy at $150,000. The council can decrease the final levy amount before its approved in December.
• Authorized $164,426 of American Rescue plan funds for work at the Hull Rust Mine View.
• Approve the agreement with Miriam Kero Consulting for the digital Equity Competitive Application Grant from the Federal National Telecommunications and Information Administration (NTIA).
• Approved a contract with St. Louis County for the chip sealing program.
• Authorized the city to apply for AARP Age-Friendly Community program.
• Approved the purchase of eight APC Smart UPSs, two rack towers, and two rack enclosure cabinets for the new servers, in the amount of $9,530.50, from Insight Public Sector.
• Approved a conditional use permit request by Kenneth Rhodes to allow for two dwellings on the same lot.