The Willmar City Council held a work session on November 26, 2024, to address pressing financial concerns and the future of the city’s Capital Improvement Plan (CIP). The meeting focused on the challenges of deficit spending and the need for a realistic approach to budgeting as the council prepares for the upcoming fiscal year.

Council members expressed frustration over the city’s financial situation, noting that the council has been deficit spending since 2016. Council member Nelson highlighted the urgency of reassessing the CIP before setting the general levy, emphasizing that the city has limited options and must incorporate necessary projects into the tax structure rather than relying on temporary fixes. The discussion revealed a consensus that the city is in a precarious financial position, with the only viable option appearing to be a tax increase.

The council reflected on past decisions, acknowledging that a lack of timely and decisive action in previous months contributed to the current predicament. Members discussed the need for a more structured process in future budget discussions to avoid similar issues. Council member Audrey suggested that earlier engagement with the CIP could have mitigated the need for drastic cuts and tax increases.

The conversation also touched on the importance of prioritizing essential projects and making informed decisions based on the city’s actual needs. Council members debated the role of department heads in identifying budget cuts, with some arguing that it is ultimately the council's responsibility to make tough choices.

Additionally, the council discussed the timeline for the city to begin receiving funds from a tax increment financing (TIF) district related to the Trident project, which is not expected to contribute to the city’s budget until around 2030. This long-term outlook raised concerns about the city’s immediate financial needs and the sustainability of its funding sources.

As the meeting concluded, council members recognized the necessity of making difficult decisions regarding the budget and the CIP. They agreed to reconvene to finalize proposals and ensure that the city can address its financial challenges effectively moving forward. The session underscored the importance of proactive planning and collaboration among council members to navigate the city’s fiscal landscape.