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Most of increase goes toward recreational facilities projects

The Albert Lea City Council voted unanimously Monday to approve a 14% total levy increase for 2025, of which about 69% will go toward the recreational facilities improvements approved by voters earlier this year.

Finance Director Kristi Brutlag said there will be a 9.6% increase in the debt levy to cover the recreational facilities projects, including improvements at City Arena, the city pool and the Marion Ross Performing Arts Center. It also includes restrooms near the splash pad.

The payments for these projects will be made for 21 years.

Other increases in the debt levy will cover street projects from 2024 and the solar project at City Arena. About $154,000 will roll off of the debt levy because of debts that have been paid off from prior years.

Brutlag said the general fund levy will increase by about 3.23%, mainly because of personnel costs, which are up almost $970,000 from 2024. There were decreases in supplies costs and other services or charges totaling about $156,000.

First Ward Councilor Rachel Christensen said serving on the budget committee, she has seen what a good job city staff did at maintaining the general fund tax levy this year. She reminded people that the increase is larger than usual because the referendum passed.

Sixth Ward Councilor Brian Anderson, who served his first year on the budget committee, said other than the referendum that passed and the increases because of employee contracts, there were virtually no other increases.

With the approved levy, Brutlag said a $100,000 property that went unchanged in value from 2024 to 2025 will see an almost $60 increase in city property taxes in 2025. A $250,000 property that went unchanged in value will see an increase of about $149.

The 14% levy increase is down from the preliminary levy increase of 15.75% previously approved.

Out of the 2025 budget, 43% will go toward public safety, 20% toward culture and recreation, 16% to public works, 14% to general government and 7% is funds transfers for equipment.

About 29% of the city’s $20.69 million budget will come from city property taxes, while the highest source is local government aid at 33%. The total levy will be a little shy of $8.77 million.

City Manager Ian Rigg said he remembers when he started in Albert Lea, the city was faced with all of the fallout from COVID-19 and there were concerns with inflation. He said there was an intentional effort to spend down reserves and space costs out in such a way so that the city wasn’t increasing things at a time when everything else was going up and the city was facing double digit inflation.

He said they aimed to stabilize that, but there is only so long that can go on until repairs have to be made on buildings such as the arena and other areas.

He thanked city staff and elected officials for their work.

The council also approved a $266,000 levy for the Albert Lea Housing and Redevelopment Authority, as well as a 5% increase in the water rates and a 7% increase in the sewer rates for 2025.

Brutlag said the average residential consumer paying $77.83 for their utility bill in 2024 will pay $82.92 in 2025, or a 6% total change.

She showed a graph of the 2024 residential monthly utility bills of surrounding cities. Aside from Faribault and Owatonna, other area cities were all more in cost for their monthly utility bill. Austin’s was about $98 with a storm water utility fee; Fairmont’s was about $135 and New Ulm’s was about $88. Faribault’s was $69.36, and Owatonna’s was $74.72.