By Chad Koenen

Publisher

t a time when a number of area cities and counties are adopting double digit increases to its preliminary tax levy, the Ottertail City Council approved a modest increase last week with the hopes of trimming the tax levy down even more before it is finalized in December.

During its regularly scheduled meeting last week, the city council approved a five percent increase to its preliminary tax levy. With a number of unknown costs, including the fire hall expansion project, the council adopted the preliminary tax levy with the goal of cutting the increase to as low as 1-2 percent, if possible.

“We did review our budget and it was at a 1-2 percent (increase. That is what we are looking at, but we wanted to be prepared,” said city clerk/treasurer Amanda Thorson. “We didn’t have the amounts of the fire hall and we wanted to be prepared.”

If approved later this year, the five percent increase will increase the city’s tax levy by $41,155 to a total of $864,266. 

Last year the city approved a 15 percent preliminary tax levy, which was later decreased to 5.6 percent when it was finalized in December. A preliminary tax levy can be decreased when it is finalized by the end of the year, but cannot be increased. 

Councilman Michael Windey reiterated Thorson’s point concerning keeping the preliminary tax levy a little higher with the goal of decreasing it later this year when it is finalized.

“We are looking at the possibility of lowering that percentage at this time,” he said. “If we do start a little higher we can work with the budget to lower that figure and make it more appropriate.”

In other news

• Heard the monthly fire department report that showed the department responded to 12 calls over the past month, of which 11 were medical and one was a fire call.

• Heard an update concerning the new veterans park in Ottertail. Thorson said the veterans memorial park group is working on getting an easement to place the park on bank property, which is needed to get the grant funding. The hope was work could begin on the new veterans memorial park as soon as late fall.

• Approved an increase in the water rates effective January 2027. The new base rate for residential properties will be $25 per month. The city also charges $7,46 per thousand gallons for up to 1,500 gallons a month, $8.21 per thousand gallons for 1,501-4,000 gallons per month and $10.25 per thousand gallons for over 4,001 commercial and industrial properties will also have a base charge of $25 per month, including $7.46 per 1,000 gallons for up to 40,000 gallons per month, $7.83 per thousand gallons for 40,001-100,000 gallons per month and $8.22 per thousand gallons for over 100,001 gallons per month.

• Heard a bond report from Todd Hagen of Ehlers who stated the city received seven bids for its $2.4 million fire hall expansion bond. Hagen said the city received an interest rate of 3.97 percent, even after the Fed increased its rate by a quarter of a point. One of the things that helped the city was a bond rating of AA, which he said is great for a city the size of Ottertail.

• Discussed the progress being made in cleaning up a pair of properties at 108 Lake Ave S and 110 Lake Ave S. Council members commended community and family members of the property owners in getting the properties being cleaned up and will give them another month to make continued progress in cleaning up the properties to meet city ordinances. 

• Approved a quote from Custom Concrete Coatings to make repairs and refinish the pickleball courts in the community park. The cost to make the repairs was estimated at $10,300, and work could begin as soon as this fall, weather depending. The city had just under $7,000 in its budget to cover the repairs, while councilman Jerry Martin said he is part of a community organization that would likely donate the remaining money to complete the project. 

• Received its annual audit report that showed the city’s cash and general fund balance increased over the last year, due to conservative budgeting and planning for upcoming projects within the city. There were also three audit findings related to a segregation of duties that appear in just about every small community throughout the state due to the size of the office staff.