The council’s discussion on the 2026 budget and levy underscored a primary reliance on property taxes, which constitute approximately 77% of the general fund revenues. The proposed general fund budget for 2026 is projected at $7.5 million. Residents like Cory Jorgensson voiced frustration over substantial increases in their property values. Jorgensson questioned how his property value increased by $41,000 in one year without any changes, emphasizing concerns that such tax hikes could drive residents away. Another resident, Mitchell Web, echoed these sentiments, suggesting the city explore alternative revenue sources, such as taxing cannabis, to alleviate the burden on residents.

The meeting addressed the implications of the city’s stance on cannabis businesses. A resident raised issues with a buffer zone ordinance affecting cannabis business locations, which was hindering the sale of their property near a proposed cannabis micro business. They argued that the ordinance, which prohibits cannabis businesses within 1,000 feet of each other, was overly restrictive and did not consider their property’s unique circumstances. The resident stressed the potential economic benefits of a cannabis dispensary and urged the council to support local entrepreneurs and diversity in business ventures.

In response to public input, the council moved to approve the 2026 budget and tax levies through resolutions. These included the final property tax levy, the EDA levy, and the housing redevelopment authority levy, all of which passed without opposition. The budget includes provisions for an 8% cost-of-living increase for unionized employees and a $110,000 increase for the Anoka County law enforcement contract.

The council also tackled several ordinance and permit matters. A significant topic was the conditional use permits (CUP) for a lower potency hemp edibles retailer and a cannabis micro business. The council approved the CUP for the hemp edibles retailer located at 18429 Highway 65 Northeast, noting that no alterations to the exterior were proposed and that a safety plan was in place. Similarly, the CUP for a cannabis micro business at 18447 Highway 65 Northeast Suite B was approved, with conditions ensuring compliance with local and state regulations.

Another issue raised by residents was the number of garbage hauling licenses issued in East Bethel. One resident questioned the necessity of having five companies operating locally. The council acknowledged the need for further discussion on this topic in future meetings.

The meeting continued with the approval of variances for a property at 19511 East Front Boulevard. The council unanimously approved requests for reduced front and side yard setbacks for the construction of an attached garage, noting that similar variances had been granted in the area previously.

In addition, the council reviewed a site plan for a proposed multi-tenant commercial building by AMA Holdings LLC on Ulysi Street Northeast. The plan includes a daycare and three retail storefronts and was found to comply with city standards. The council approved the site plan with conditions, including a requirement for a wetland delineation.

The council also discussed the development agreement for the Viking Meadows second edition. Concerns were raised about a provision allowing minor changes to be approved by the mayor and city administrator. The council opted to remove this provision. The agreement was approved with this amendment.

Updates on city projects were provided, including ongoing work at the fire station and staffing changes. The council recognized Grace’s contributions as she prepared to leave her position with the city. Community events, such as a successful tree lighting event, were also highlighted.