A primary topic of discussion was the proposed COLA for non-union city employees. The council deliberated on whether to set the increase at 3% or 3.5%, ultimately deciding on a 3% adjustment after a debate. Some council members expressed concerns about balancing fiscal responsibility with employee appreciation, noting that while the annual COLA was typically 3%, employees could receive a combined increase of 6% when factoring in step increases. A council member highlighted the need for competitive compensation to retain staff, stating, “If I don’t get appreciated in my job, I’m going to say see you.” The motion for a 3% COLA passed with a 4-1 vote.

The meeting also addressed broader budgetary concerns, with a discussion on the truth and taxation presentation for the 2026 budget. The city’s financial outlook was detailed by highlighting the necessity of using $219,000 from its fund balance to cover operating expenses. The fund balance policy aims to keep reserves between 30% and 70% of the following year’s expenditures, projecting a decrease to 50.4% by the end of 2026. The presentation emphasized the city’s efforts in reducing the tax rate from 85.93% in 2017 to a projected 43.79% for 2026, despite an overall levy increase of about 5% due to growth in the city’s tax capacity.

Public sentiment was also a focal point, with residents voicing concerns during the public comment section. Denal Vanble Vleet addressed perceived slander against Mayor Luke Merrill and council members, defending their fiscal responsibility and opposing a proposed splash pad due to potential tax increases. Rebecca Waller raised an issue about non-functioning lights at the sledding hill, with the council promising to investigate. Meanwhile, Janet Shock inquired about property tax evaluations and commended volunteers for the Illuminate event. County Commissioner Todd Christensen provided an update on the county’s budget, noting a decrease in the proposed tax rate from over 15% to 3.63%.

The council reviewed the fire district’s budget, expressing frustration over a 3.2% increase despite efforts to adopt a zero-increase budget. Isanti bears 42% of the fire district’s costs, and the outcome left council members feeling a lack of control over financial decisions. Discussions highlighted the importance of fiscal prudence while managing community expectations and maintaining essential services.

In other business, the council approved the registration of a cannabis microbusiness for Limeline LLC, confirming compliance with zoning requirements. The council also celebrated community contributions to local initiatives, particularly acknowledging donations for the Illuminate Sandy event, which covered the event’s costs except for public works time.