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Source: City of Pipestone
Pipestone City Council members during their Dec. 1 meeting approved a 2026 property tax levy of $2,962,645, which is an increase of $152,550, or 5.4 percent, over this year’s levy. That includes a general tax levy of $1,777,549 and a debt service levy of $1,185,096.
The final 2026 levy is the same as the preliminary amount the Council approved in September.
City Administrator Stephanie LaBrune said during a special City Council meeting prior to the regular meeting that the cost of living raises for city employees were reduced from the 5 percent that had been budgeted earlier to 2.8 percent, which matches the federal social security increase. She said that would have reduced the levy by $39,390, but city staff recommended leaving the levy at $2,962,645 to leave some funds to help pay for street repairs planned for Seventh Avenue Southwest next year, which are expected to cost around $71,790. The City Council previously expressed its intent to sell bonds to pay for that and other projects.
In addition to the 2026 levy, the City Council approved a 2026 budget with expenditures of $15,777,839 and revenue of $16,491,050.
Tax levy revenue is the largest source of funding, followed by Local Government Aid, which is projected to provide $2,759,371.
The general fund is the city’s largest fund with $3,155,331 in projected revenue and expenditures. The largest share of general fund revenue is expected to be $1,787,419 from intergovernmental sources, followed by $1,164,982 from taxes. The largest general fund expenditure is expected to be $1,032,200 for public safety. The next largest expense is projected to be $650,577 for the city office.
The water fund is the next largest fund with projected expenditures of $2,077,357 and revenue of $2,083,100. Operating revenue is expected to provide the largest share of the water fund’s revenue at $1,983,100.
Next is the airport fund, which has projected expenditures of $2,003,668 and revenue of $1,990,713. That’s significantly more than in previous years due primarily to a fuel tank replacement project estimated to cost around $1 million and completion of an 80 by 80-foot hangar for which the City Council approved a bid of $803,732.46 in May. Intergovernmental sources, including state and federal funding, are expected to provide the majority of revenue for the airport fund with $1,440,713. Another $400,000 is expected to come from bond proceeds to pay for the city’s share of the fuel tank project.
The liquor store fund is the next largest with a projected $1,806,282 in expenditures and $1,878,500 in revenue from operations.
The sewer fund is the next largest with projected expenditures of $1,714,136 and revenue of $1,731,009 from operations.
The last fund with a projected budget over $1 million is the park and recreation fund, which has projected expenditures and revenue of $1,167,153. The largest amount of spending is projected to be for the Ewert Recreation Center at $325,878, followed by $240,803 for parks and playgrounds. Intergovernmental revenue is expected to provide the largest share of revenue at $559,078, followed by taxes, which are expected to provide $311,125.
The 2026 budget includes $51,000 for the Safe Routes to School project, $50,000 for maintaining city owned buildings, $50,000 from the liquor store fund designated for a new recreation center, $45,000 for the Pipestone County Museum, $30,000 for the Schroeder Center, $12,000 for senior center operations, $5,000 for the Pipestone Performing Arts Center and $5,000 for the Pipestone Farmers Market.
In other business:
•The city will receive a $941,000 Federal Lands Access Program grant for a new trail along Reservation Avenue and through Hiawatha Pageant Park, providing safe, dedicated pedestrian access to Pipestone National Monument. The funds will be awarded in 2028 and the trail is expected to be completed in 2029. The grant will fund 100 percent of the project with no local funding required.
•The City Council approved a request from the Pipestone Firefighters Relief Association to increase the amount of the retirement benefit earned for each year of vested service from $3,500 to $4,500. Firefighters become partially vested at 10 years and fully vested at 20 years of service, and can draw the retirement benefit at age 50. The change will take effect Jan. 1.