The Ellsworth Village Board on Nov. 21 approved a 2025 budget of $3,359,321, 8.05 percent below the 2024 budget, and a property tax levy of $1,513,948.

The board also authorized the sale of up to $2,096,783 in water system revenue bonds for the North Grant, Piety, Strickland, South Grant and Woodworth Street reconstruction project. Administrator/Clerk-Treasurer Brad Roy said the project’s cost has not increased, but according to a report to the board, the state Department of Natural Resources cut its safe drinking water loan for the project from $3,700,595 to $2,096,783, resulting in an overall project funding gap of $2.1 million.

On the 2025 budget, Roy said it was drafted with the goal of “getting our finances stable and not relying on reserves.” He indicated village departments reduced their budgets, and added, “I think we can maintain services” with lower spending.

The approved property tax levy sets a mill rate of $5.07 per $1,000 of assessed value, a 5.8 percent reduction from 2024.

“For a homeowner with a $250,000 property, this means an estimated reduction of $77.50 in the village portion of their property taxes,” according to the budget report to the board. The village’s levy is about one-third of Ellsworth property owners’ total tax bills, the report noted.

Property tax revenues make up an estimated 45 percent of the village’s projected general fund revenues for 2025. Other funding sources, totaling an estimated $1,845,373, include state, federal and other intergovernmental revenues, special assessments, licenses and permits, fines and forfeitures, fees for garbage collection, new development and other services, planned borrowing for capital costs and miscellaneous revenues.

The village’s total general obligation debt totals $4,066,294, 25 percent of the state’s statutory limit of 5 percent of the community’s equalized value, according to the budget report. New long-term debt will total $233,626 to finance one-time capital projects, including street resurfacing, buying a public works tractor and mowing attachment, village shop asphalt paving, curb and gutter projects, sidewalks, crosswalks, retaining walls, air conditioning for the Ellsworth Library and costs of issuing bonds.

The general fund balance on the Dec. 31 end of the 2024 fiscal year will be an estimated $227,705 but none will be applied to the 2025 budget. “The use of fund balance reserves may be appropriate for one-time capital expenses (vehicles, equipment, public works projects), but should not be used for ongoing operational expenses,” the budget report to the board said.

General fund spending in the 2025 budget includes:

• General government expenses, $425,497, down 16.49 percent from 2024
• Public safety, $1,209,293, down 2.11 percent
• Public works, $1,035,171, down 18.97 percent
• Health and human services, $9,166, down 0.64 percent
• Recreation and education, $337,947, up 2.53 percent
• Conservation and development, $103,248, up 27.65 percent
• Debt service, $238,999, up 13.01 percent

The budget report said increased conservation and development expenses involve anticipated removal of dead and diseased trees. In addition, the village expects higher costs for the Plan Commission and building inspector in connection with three developments expected to begin in 2025: the Gerrard Meadowlark apartments, C&E Wurzer at the old junior high school site and Workhorse Land Development in tax increment district 13.

On the water bonds item, Roy said the cost of the reconstruction project has not increased, but DNR cut its safe drinking water loan to the village from $3,700,595 to $2,096,783. To close an overall $2.1 million funding gap, Roy said a U.S. Department of Agriculture loan is a possibility along with other sources the village’s financial adviser, Roseville, Minn.-based Ehlers, Inc., may identify. The project is due to begin construction in the spring.

A report to the board said, “After the project bid was accepted, the DNR engineer reviewed the plans to determine project eligible costs. At that time, the actual loan amount was determined to be $2,096,783.”

The bonds to repay the loan will be repaid with the village’s water utility revenues.