City council to discuss 2021 finances during work session

The Bemidji City Council will discuss 2021 finances during their work session, rescheduled for tomorrow evening.

According to city documents, the council will face a “crossroads” next year, with three main considerations to the levy.

There will be no tax rate increase, while the levy will still increase, because of the additional tax base added to the city through annexation.

Capital funding for the Sanford Center has $750,000 in annual estimated needs, with only about a third budgeted, leaving a $520,000 shortfall.

To cover the Sanford Center Capital needs, staff is recommending increasing levy to cover the shortfall, but the levy would potentially reduce if a sales tax is approved.

The third consideration is personnel, which is 67 percent of the budget.

The estimated total personnel increases for 2021 is $733,000, and non-personnel operations such as fuel, supplies and others has an estimated increase of $160,000.

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