By Logan Wells, News Director | Logan@kymnradio.net
The Northfield City Council began a discussion in earnest this week about next year’s city budget and tax levy, marking the start of a process that will continue until the beginning of December. At Tuesday night’s Work Session meeting, the council heard the high-level proposals from staff. More detailed proposals are set to come forward in August, with the decisions being made throughout the fall.
The Context:
Earlier this spring, the City Council approved the construction of a new Ice Arena and issued debt to pay for the new building. In doing so, the city has already committed to paying the new debt costs of the ice arena, resulting in an 8.4% increase in the city’s total Tax Levy. A point that Councilor Davin Sokup raised during Tuesday’s meeting:
“And sometimes when you talk about a city budget, it’s how all of it sounds like very not tangible. A huge portion of our levy increase is for one project.” – Davin Sokup, Northfield City Council, at the 7/15/2025 City Council Work Session Meeting
Learn more:
The remaining budget increases are based on requests from department leaders, infrastructure projects, and equipment purchases. However, the vast majority of the remaining budget increases are for labor union contracts that have already been agreed upon and signed.
Based on the results of the city’s last independent audit, Northfield spends about the average amount of a town of similar size. However, Northfield’s tax rate is the highest among comparable cities due to the smaller overall tax base.
Three high-level proposals were presented at Tuesday’s meeting, with more detailed proposals discussed in August. According to the staff report, both options B and C would require a reduction in spending to afford the debt of the ice arena and labor contracts
- Option A: 17.8% total
- 8.4% Ice/Debt (fixed)
- 9.4% Other
- Option B: 14.5% total
- 8.4% Ice/Debt (fixed)
- 6.1% Other
- Budget Reductions necessary: $575,000
- Option C: 9.9% total
- 8.4% Ice/Debt (fixed)
- 1.5% Other
- Budget reductions necessary: $1.4 million.
Timeline for Decisions:
Going forward, the Council will again discuss the budget in-depth on August 12th. Then, on September 23rd, the council will set the preliminary tax levy. The preliminary levy sets a ceiling for any tax increase; the final levy can be lower, but it can NOT be higher than the amount set in September. The council will then approve the final budget and tax levy increase at their Truth in Taxation meeting on December 2nd.
Council Begins Discussion About The Budget:
Picture By Logan Wells/KYMN News
Picture by Logan Wells/KYMN News
At Tuesday’s meeting, some initial opinions were raised by councilors about the next directions with the budget, with several of them, including Councilor Chad Beumer, concerned about an increase in the tax levy:
“I just urge staff to look for cost savings wherever they can find it no matter how incremental that is lot of small things add up to big things throughout throughout the course of a year Anything that we can do to help keep the levy as as low as we possibly can is is great and I do appreciate all the work that they’ve done [referring to staff].” – Chad Beumer, Northfield City Councilor, at the 7/15/2025 City Council Work Session Meeting
Councilor Peter Dahlen requested that a fourth lower option also be made with a far lower tax levy increase at 3%. City Staff stated they would bring forward a proposal based on that request.
Picture By Logan Wells/KYMN News
Picture credit: Logan Wells/KYMN News
Several Councilors expressed concerns with the budget reductions with Councilor Kathleen Holmes stating it would be a painful process to cut the budget:
“I want to try to get our levy as low as we can while still providing the expected service level that the Community has for us. And I think at 3%, 4%, whatever that number might be. I think even at 9.9%. The expectations of service levels are going to have to be greatly, greatly changed.” – Kathleen Holmes, Northfield City Councilor, at the 7/15/2025 City Council Work Session Meeting
Councilor Jessica Peterson-White requested that if budget cuts were to be pursued, a similar process to the school district’s budget reductions this past spring be used, citing transparency.
Tune in to today’s edition of 10 Minutes or Less for a further discussion of the tax levy.
I will keep you posted on future details about this story as they become available.
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