The most pressing discussion revolved around the city’s housing funding. A representative detailed funds reserved for the Economic Development Authority (EDA) aimed at engaging developers for potential housing projects on city-owned properties. This sparked interest among council members, leading to questions about the city’s housing authority funding and past levy decisions. One member expressed a need for clarity, pointing out a historical disparity where additional funding was deemed unnecessary due to unutilized cash balances. This concern was amplified by rising personnel costs associated with the housing authority, reportedly increasing by 13%.

City funds being used for county-level programming further complicated the issue, with the housing trust fund potentially being reduced to zero. This reduction opens avenues for the city to address housing needs directly. The council’s focus was on balancing these challenges with the necessity of proactive measures to secure external funding and support ongoing and future housing initiatives. Efforts to secure grants for public housing and infrastructure improvements were outlined, with an emphasis on preparing for potential federal funding cuts projected for 2026.

In related financial discussions, the council addressed the library’s budget request, specifically a preliminary levy of $155,840 for 2026. The request drew scrutiny as members questioned recent allocations and perceived inconsistencies in how library funding was communicated. One member referenced radio advertisements that misrepresented the library’s financial situation, expressing reluctance to support the requested increase. Despite these concerns, the motion for the preliminary library levy was taken for further consideration.

Another topic was the Payment in Lieu of Taxes (PILOT) from the public utility department. The council examined PILOT payments from other communities to inform their own decision-making, with the current budget for 2026 set at $780,000. Members debated the appropriate percentage for PILOT payments, with one suggesting a move to 5%, citing national averages and concern over past decreases despite rising utility revenues. Conversely, another member proposed a phased approach, starting with a 3% target for 2026, to align changes with the utility’s financial projections.

The council emphasized the importance of a percentage-based approach to PILOT payments, acknowledging the need for careful review of utility revenues and expenses.

The meeting also covered the city’s insurance arrangements. The Personnel and Finance Committee recommended accepting Madison National’s proposal for long-term disability insurance, effective November 26. The current provider offered a 10% decrease in premium with a three-year guarantee, contingent on maintaining the existing plan design. For dental and ancillary benefits, the committee advised switching to MetLife, with costs fully employee-funded. The council approved these recommendations without opposition.

A change order for the library project’s HVAC system was also discussed. The council had previously approved a contract for balancing the system, and a new recommendation was made to upgrade to a two-stage system for enhanced efficiency. This change would address humidity issues, and the additional expense was approved after deliberation.

The closure of bond funds was another agenda item. The Finance Director reported on the payoff of General Obligation Improvement Bond Series 2013A and 2015A, with fund transfers to zero out fund 317. A council member questioned the rationale for transferring funds to a healthy fund over one with a negative balance, prompting a discussion on the implications for addressing fiscal deficiencies. Despite the concerns, the motion to adopt the fund transfer resolution was carried.