The council’s decision to raise the tax levy by 5.38% was a notable item of discussion, driven by the need to address escalating equipment prices, insurance costs, and inflation. The council considered the potential financial impact on homeowners, estimating an annual increase of approximately $25 for $300,000 homes and $41 for $500,000 homes, assuming property values remain unchanged. This increase aims to maintain essential services and align departmental capital goods plans with the city’s capital outlay policy. The council emphasized the need to diversify the tax base beyond the current 86% reliance on residential properties, potentially easing the burden on homeowners in the future.

In addition to the levy discussion, the council approved a final pay request for the 2025 Mill and Overlay project, which totaled $1,679,549.06, exceeding the original contract amount by close to $110,000. The increase was attributed to necessary subgrade adjustments and the addition of pedestrian ramps, along with a retaining wall that incurred higher costs due to changes in materials and quantities. The council acknowledged minor errors in the project but concluded that the improvements to local streets justified the cost overruns.

The Division Street lift station pumps, nearing the end of their operational life after 27 years, were another critical focus. The council approved the purchase of replacement pumps for approximately $18,000, taking advantage of a 10% discount. This measure aims to ensure continued efficiency in the city’s wastewater management.

In the realm of public safety, the Fire Department proposed replacing its rescue tools with new battery-powered equipment, moving away from the outdated hydraulic tools. The council approved this purchase, highlighting the trend towards more efficient and cost-effective battery-operated tools. The approval included a list of recommendations for next year’s officer appointments within the department, which passed without opposition.

Community development was also addressed, with discussions on expanding lodging opportunities and promoting housing and business development. The water department is working on implementing lead and copper regulations, and the wastewater department is finalizing a facility plan.

The council also discussed ongoing projects like the Eagle Scout-led refurbishment of the city park and the Buff Country Hiking Club’s request for continued funding to maintain the Lost Creek Hiking Trail. A proposal for a new hiking trail route connecting to the existing trail was approved. Funding for the new trail was secured from the Legislative Citizen Commission on Minnesota Resources, requiring no city funds.

In personnel matters, the council unanimously approved an amendment to the PTO accrual policy and the closure of city offices on December 26 and January 2. They also agreed on a premium split for Minnesota paid leave, adopting a $50.50 split as permitted by law.