2025.10.06 CC Packet - Laserfiche WebLink

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Minutes for Midyear Budget Review on September 15, 2025 Page 2 of 5 published tax rates elsewhere. Staff concluded that adhering to a flat tax rate allowed for continued Street and Trail CIP funding while maintaining financial stability, and recommended adoption of the proposed 2026 levy, which may be lowered in December but not increased. Petryk pointed out that the COLA for Social Security was 2.9%. Wobse explained that was in line with what the staff was proposing. Weidt questioned the reason for the increase in officers’ salaries. Fire Chief Jim Compton, Jr., explained that while the hours themselves have not changed, the department is looking at how to fairly compensate staff for the time they commit. The proposal covered a two-year period, with 16 hours allotted for captains and 12 hours for lieutenants. Compensation was based on their hourly rates for calls and drills. This adjustment would affect six employees, with an estimated total annual cost of $10,000. Jr. emphasized that this change would help sustain the department’s “farm” system. Weidt asked about the need for contracted park inspections. The Public Works department was finding and correcting the majority of issues currently. It was explained that the League of MN Cities recommended certified inspections be done once every seven years. This could potentially save money on insurance premiums. Public Works Director intended to work on a schedule to begin the rotation of the parks for inspections. Weidt asked about the adjustment to the salary matrix and if that would be comparable to other cities. Wobse responded that it would after other cities made their adjustments. explained that a position in the community development department was currently a placeholder, allowing flexibility if applications increase. The comprehensive plan may also require additional work. The deputy clerk’s position would be filled when there is a more compelling need and could help the City focus on communications. Weidt asked about a roadmap to achieve the city’s highest possible bond rating. Anna noted that such a goal should be a priority, though it may take years to complete. Bear explained that the City has various fiscal policies not yet adopted, but achieving a AAA bond rating is reasonable and would significantly lower borrowing costs. Weidt further stated that if the city considers another facility, obtaining a higher rating beforehand would be very beneficial. Petryk inquired about the City’s current reserves, totaling $10.7 million, and how they are invested. Anna explained that funds are placed in bonds and CDs, noting that the city made approximately $2 million in investment earnings last year but may not see those returns at the same level moving forward. Miron asked about the street CIP and if significant projects were covered in the current budget and existing assessment policy. Anna confirmed that they would be, provided the levy remains at $2 million. It was noted there needed to be a discussion in the future about changes to the assessment policy.