The City of Crookston City Council convened on November 25, 2024, for a budget workshop meeting focused on reviewing preliminary budgets and discussing financial allocations for the upcoming year. The meeting began with Finance Director Jeff presenting updates on capital funding and budget adjustments.
Jeff reported that the council identified several capital items that could be funded without impacting the tax levy. Notably, $32,000 was earmarked for a payloader, and an additional $5,500 was allocated for battery lights for exit signs, which can be postponed. These adjustments resulted in a minor savings of $37.05.
However, the council faced a setback regarding workers' compensation costs. Jeff revealed that the city's experience factor had worsened, increasing from 78% to 86%. This change will reduce the discount on workers' compensation from 22% to 14%, leading to an estimated increase in costs of about $30,000. This increase effectively negates the savings achieved from the earlier budget adjustments.
Overall, the council's discussions highlighted both opportunities for funding certain capital projects and challenges posed by rising workers' compensation costs. The meeting concluded with a focus on refining the budget to address these financial dynamics as the council prepares for the upcoming fiscal year. Further discussions and decisions will be necessary to finalize the budget and ensure fiscal responsibility moving forward.