Edgar’s City Council passed the 2024-25 budget Monday, after discussion and feedback.
About 20 Edgar citizens attended the hour-and-a-half meeting, 40 minutes of which focused on a public hearing for the budget summary.
The original operating budget for 2024 of $3,098,537 included a $1.32 tax rate, a 148 percent increase from 2023, which was .53 cents.
Last year’s operating budget was $1,087,776, a 185 percent increase in the 2024 budget.
The property tax request also increased 155 percent, going from $141,000 to $358,961.07.
A breakdown of the property tax includes:
• $116,961.07, Personal and Real Property Tax required for Non-Bond Purposes; and
• $242,000, Personal and Real Property Tax required for Bonds.
These increases come after the city approved the 5th Street project at a cost of $2.5 million.
To pay for the project, the city applied for grants, getting approval for one from Black Hills Energy in the amount of $85,000, and another from Little Blue NRD for $9,600. The rest came from cash reserves on hand, including $300,000 from Sudgen funds for start-up costs, and a bond for $2.2 million.
Additionally, the council approved $79,000 of ARPA funds to pay for sewer and structures.
Originally, the council was told taxes from the bond would go up $100 for every $100,000, but instead increased to $1,000 for every $100,000.
While some citizens said they understood they should have come to meetings while the discussion for the project was happening, they are upset with the council on their decisions that led to this point.
After feedback from the initial budget, council members adjusted the budget, dropping the original proposed tax rate from $1.32 to .95 cents, using $100,000 from Ameritas funds to go toward paying the bond.
One citizen noted how using the $100,000 would just be a bandaid for the next year. The approved tax rate would be set for the next 13 years.
The council also proposed cutting the budget. Some proposed cuts included not replacing mowers every four years as they have done; reducing the number of times the city/cemetery is mowed; and reducing hours at the pool to only being open five days a week for eight weeks; while others fell under broader categories such as trees and parks/recreation.
Some of the community members spoke up about how they didn’t want to give up certain services to the town as a result of the council’s decisions made for the 5th Street project.
“I understand where people are coming from, we made a mistake,” Council member Scott Corman said.
Corman added that cutting the budget doesn’t have to be drastic; however, Mayor Brad Brennfoerder worried any cuts to the budget might be difficult to get back in the future.
Corman suggested instead of cutting the budget, they keep the Ameritas money, so they can fall back on it if needed.
Another suggestion was cutting the budget by $50,000 and using $50,000 of Ameritas funds so that it wouldn’t bring services to the community to a bare minimum.
About eight citizens in attendance agreed that the council should approve the budget as is, by not using the Ameritas funds and going forward with the $1.32 property tax request, while two stood for using the funds and having a .95 cent tax request.
After a brief discussion, council members unanimously approved the original proposed 2024-25 operating budget of $3,098,537, as well as allowing a 1 percent increase in the Base Limitations for the Restricted Funds; Resolution #2024-09-03 to set the property tax request for the budget; and Ordinance #536 for the Annual Appropriation bill, which approved and adopted the budget.
