(KNSI) — The St. Cloud City Council voted 6-1 Monday night to approve a nearly $87.8 million government funds package for 2024.
Councilmember George Hontos was the lone no vote. He voiced concerns over spending $800,000 in reserves, telling KNSI News he didn’t think it was necessary to dip into that well with an $87.8 million budget. “It would seem to me that we could sharpen the pencil and found those $800,000, so, that was the primary concern. The other is that we’re using reserves for a period of time, for four years in a row and our bonding agencies don’t like to see it any more than three years in a row.” He says the city’s reserves are “being depleted,” but adding, “not that they’re out of range or anything, but they’re on the low end of range. There was no reason in my mind to use reserves to balance the budget.”
Hontos says using that money will bring the reserves to 38%. What is considered a low level is 35%.
A major chunk of the overall funding will go toward public safety. Public safety was identified as the top priority by a community survey in 2019. In 2023, the city allocated $39,689,900 for it, and next year, that department will get $45,243,600, which is a 13.99% increase year over year. The police department wants to add another Community Service Officer and hire a deputy fire chief.
Parks, recreation, and the library are getting 30.37% more money next year, mostly due to last year’s voter-approved referendum to invest $20 million into neighborhood parks and trails over the next three years. Its budget will go from $5,991,00 to $7,811,200, which is $1,819,600 more than in 2023.
There will be $507,800 more allocated for administrative support, which equates to a 15.62% increase. That bump follows a compensation study showing what workers for the city here are making versus other cities of similar size.
Community development will get $3,217,300 in 2024, up from $2,861,100 this year. That’s a $356,200, 12.45$ increase.
Information technology spending will also go up from $2,053,400 in 2023 to $2,490,300 next year. That’s a hike of $436,900, or 21.28%.
Officials say the tax rate will remain unchanged despite increasing spending next year. Mayor Dave Kleis says the city is “capturing the growth” in the tax base, meaning your property taxes should only increase if your property valuation goes up. Officials estimate the tax base will grow by about 10% next year.
Kleis says he is appreciative of the fact his 2024 budget proposal passed overwhelmingly on Monday and tells KNSI he believes the number looks bigger than it actually is. “If you take the full governmental-supported budget of 2007 and you adjust for inflation with the budget that passed last night by the council, we are spending $6 million less than the budget that I presented in 2007. Six million, adjusted for inflation.”
Kleis adds he has kept costs in check by limiting local government to core functions like infrastructure and public safety. “Focus on what is a priority for the city, not that which would be nice. I mean, we have, what I believe are core responsibilities. I don’t believe in funding social services at the city level. There are other entities that do that, whether it is state, federal, or nonprofit.”
Kleis also notes that no one spoke out against the proposal in the public comment period.
About 45% of the city’s funds come from property taxes, about 18% from local government aid approved by the Legislature, and the rest from other sources.
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