City Administrator Jennifer Bromand provided an extensive overview of the preliminary draft budget, emphasizing the necessity for Minnesota cities to adopt a proposed budget and property tax levy annually. Bromand highlighted that the current year’s proposed total levy increase stands at $135,400. The city’s projected general fund expenditures are approximately $2,473,192, against revenues estimated at $2,372,456, resulting in planned deficit spending of just over $100,000. This deficit is attributed to capital outlay allocations.

A significant portion of the discussion revolved around personnel costs, with the budget factoring in a 3% cost-of-living adjustment alongside a similar step increase. Health insurance costs are projected to rise by an estimated 8%, with vacant positions estimated conservatively to prepare for potential expenses. Bromand also pointed out that local government aid (LGA) had seen a minimal increase of less than $1,000.

Attention was given to specific budget line items, including a notable increase in funding for community events like “Summer Sounds,” which rose from $10,000 to $15,000. Additionally, Bromand proposed increasing the budget for city council meeting education from $2,000 to $5,000 to enhance engagement with state and federal funding opportunities. The mayor’s budget would similarly increase from $200 to $5,000.

The council also discussed the potential for capital improvements at City Hall, focusing on future maintenance needs such as the roof and mechanical systems. There was a suggestion to enhance the cleaning contract, especially with a new church set to use the space every Sunday and the growing frequency of meetings. The importance of professional cleaning was stressed to ensure that staff are not burdened with maintaining cleanliness in a community-serving facility.

The police and fire department budgets were reviewed, noting a 3.5% increase for the police department due to contractual obligations. The fire department’s budget included a new line item for a clothing allowance of $5,000 for duty shirts and accounted for wage increases and adjustments to the Fire Relief pension. A critical discussion emerged regarding the potential allocation for pursuing a new fire station, emphasizing the need for a definitive plan and financing options.

Discussions on street maintenance highlighted the necessity to assess and address issues with fading street signs, recommending that Public Works undertake this task. The budget also included a capital outlay of $14,000 for public works, particularly for equipment like mowers, to build a reserve over time for necessary changes.

The council considered the budget for various departments, focusing on animal patrol and civil patrol categories. There was a need to retain funds in the animal patrol budget for potential impounding costs and a suggestion to retitle the civil patrol budget, which primarily pertains to warning sirens for tornadoes. Enhancing capital outlay for these sirens was deemed necessary, as they are costly and no previous funds had been allocated for replacements.

Tree trimming and maintenance were also discussed, with emphasis on the capacity of Public Works to handle various tasks. The need for a wood chipper was highlighted as a significant asset for managing lower branches and park debris. However, some tasks would necessitate hiring professional tree trimmers due to the complexity and equipment required.

Financial constraints were a recurring theme, with discussions on the need for different budget scenarios for the council to evaluate, particularly in relation to potential increases in the fire department’s funding. The need for reliable funding mechanisms was emphasized, alongside suggestions for exploring new revenue sources to support the community’s growing needs.