Jamestown taxpayers are looking at a nearly 8% increase in property taxes in 2025.

Mayor Kim Ecklund released her 2025 budget proposal Tuesday – and was blunt in her assessment of her first budget as mayor.

“This budget is ugly,” Ecklund said.

The first step in the ugly budget will likely come soon when council members will be asked to pass a resolution to exceed the state’s 2% tax cap. The tax levy increase of 7.79% means an increase of $1.82 per $1,000 of assessed valuation to the city’s tax rate from $23.35 per $1,000 to $25.17 per $1,000.

“It has to be done before the budget is approved,” Ecklund said. “Council will have to approve that this week. If don’t use it you don’t use it. I recommend having it in there.”

Ecklund’s budget address began with a recap of issues that have come to light over the past year with the 2024 budget proposed by former Mayor Eddie Sundquist and approved by the council in December. Optimistic revenues tied to a second ambulance in the city fire department, improper contracting for a cell tower on city property, unpublicized and unplanned memorandums created in 2023 created agreements with expenses the council hadn’t approved, a memorandum for a grant funded position didn’t hold the city harmless for termination and unemployment costs and incorrect budgeting for health and retirement expenses all contributed to a $2.5 million in known, but unbudgeted, expenses in the 2024 budget. All of those expenses, particularly recurring costs like insurance and retirement spending, are driving the 2025 budget higher, Ecklund said.

“We did this budget without any layoffs,” Ecklund said in a nod to former Mayor Sam Teresi’s budget, which included layoffs in the police and fire departments that prompted arbitration proceedings. “It’s a significant tax increase. I understand that. I’m disappointed what happened in 2024. I was on council. I was part of that. Council relies on the comptroller for getting accurate numbers into the budget and that didn’t happen. There are certain things council can’t control, like retirement, health care premiums, those type of things. I don’t want the council blamed for those bad decisions.”

The only decision Ecklund said the council had a direct role in was an optimistic increase in sales tax revenue. Ecklund’s budget rolls that 2024 projection backward, so the city should meet its budget projection for sales tax in 2025.

Ecklund said pension system payments are projected to increase $580,000, health care costs are projected to increase $827,000, stop loss insurance claims are increasing and retiree Medicare Advantage costs that weren’t included in the 2024 budget will cost an additional $018,000. There are also unknown costs as contracts with the police and fire departments, as well as CSEA employees, conclude in December. The budget includes no capital spending except for CHIPS road projects, with salaries and benefits comprising 76% of the budget.

The city came into the year with $7,682,845 in its unassigned fund balance. Resolving the 2024 shortfall, plus the $700,000 Ecklund proposes using in the 2025 budget, leaves the city with a little more than $4.5 million in its fund balance going into 2025. Ecklund said she expects the 2023 audit, which is nearing completion, to show at best a break-even 2023 that won’t result in additional money flowing into the fund balance.

“Before anyone asks me, don’t expect any revenue for 2023. Expect a break-even,” she said. “It’ll be lucky if we break even.”

The council’s budget review begins Oct. 21 with a review of the City Clerk, Comptroller, Assessor, Information Technology, Corporation Counsel, Mayor, Police and Fire department budgets. It continues Oct. 28 with a review of the parks and public works budgets followed by the Development Department and Fenton History Center budgets on Nov. 4. Amendments to the budget are due Nov. 10. A public hearing will be held at 6 p.m. Nov. 18 in the council’s chambers. The council’s budget vote is scheduled for Nov. 25.

“I’m sure no one is utterly shocked,” Ecklund said of her budget proposal. “We’re just disappointed.”