One notable issue at the meeting was the discussion surrounding the Highway 10 Liberty Lane railroad crossing repair. The council examined the funding and management of necessary repairs, focusing on the allocation of funds from various sources. Issues at the crossing included loose concrete panels, necessitating temporary repairs using wooden planks. The railroad proposed a cost-sharing model for the repairs, with the city’s portion estimated at $70,400 to cover the panels, while also handling asphalt patching and traffic control at an additional estimated cost of $64,000. There was some ambiguity regarding the use of the Capital Improvement Plan (CIP) fund for these repairs, as it was initially intended for the city’s own railroad spur. The council discussed utilizing the CIP’s current allocation of approximately $388,000 to cover any shortfalls and emphasized the importance of careful planning and coordination with the railroad to avoid delays.

The council also considered the trend of increasing cost-sharing requests from railroads for maintenance of crossings, noting similar situations in other cities like Sock Rapids. Discussion highlighted the need for future planning, including the incorporation of these repairs into upcoming street projects to ensure cost-effectiveness and the establishment of a specific line item in the budget for quiet zone maintenance. The council directed staff to return with a plan for budgeting ongoing maintenance.

Another topic was the budget discussion led by Mr. Ebansteiner, focusing on the upcoming preliminary levy adoption scheduled for the 16th. Five key changes were highlighted from previous budget presentations, including the inclusion of half of a police sergeant position in the 2026 budget, representing an additional expense of approximately $71,000. Adjustments were made to revenue projections for building permits and associated building inspection services, resulting in no net levy change but altering both revenue and expenses. Further adjustments involved reallocating energy transition aid and administrative capital spending, with a necessary fuel system upgrade coordinated with the school and fire department.

The budget presentation included a levy rate summary, projecting an overall increase of 2.45% from the previous year, with a total levy amount expected to be $10,498,579. Discussion of the tax capacity revealed a preliminary total net tax capacity increase of 3.89%, influenced by land purchases by Amazon and Microsoft. However, there were concerns over discrepancies between preliminary numbers and earlier projections, leading to discussions on reconciling estimated market values with actual taxable values.

In terms of personnel matters, the police department is facing challenges in filling a full-time position. Despite receiving four applications and interviewing three candidates, an offer was made to one candidate who ultimately withdrew for another job offer. The police chief noted the saturated job market and a lack of recruitment during the summer months as factors contributing to these difficulties. The council discussed re-opening the position and utilizing a recruitment incentive policy, offering up to $2,000 for successful candidate referrals. With council approval, the chief planned to extend the typical posting period to attract a larger pool of applicants.

In addition to these major topics, the council reviewed a presentation by Chief Limblum regarding the 2025 Police Department body-worn camera audit. The audit, conducted bi-annually, ensures compliance with Minnesota state statutes governing camera usage. Chief Limblum reported the audit’s successful completion without discrepancies, covering policies, procedures, data retention, and inventory management. The department retains over 24,000 videos, translating to 4,240 hours and 7,547 gigabytes of data, stored in the cloud through Axon.

The meeting also addressed the landscaping plan for City Hall and the certification for County Road 53, with both projects receiving unanimous approval. The council discussed post office box arrangements, with the current lease expiring at the end of October, prompting a need for quick action to establish temporary placements.