The council meeting began with a detailed presentation on the proposed budget and tax levy for 2026. A preliminary tax levy increase of 7.75% was proposed, representing approximately $99,746 more than the previous year. The proposed general fund budget outlined revenues of $2,546,574 and expenditures of $3,340,830.

Discussion centered around the truth and taxation hearing, a necessary step to certify the final property tax levy by December 29. The presentation clarified that public input was welcomed, although market values discussed were preliminary and not open for debate at this time. The council stressed the importance of timely resolution and compliance certificate submissions to Blue Earth County and the Minnesota Department of Revenue.

In conjunction with budgetary concerns, the meeting featured significant dialogue on affordable housing, with Habitat for Humanity representatives addressing the community’s struggle with a lack of inventory for starter homes. They clarified a common misconception that Habitat homes are free, elaborating on their model that provides a “hand up” rather than a “handout.” The organization highlighted barriers families face in achieving homeownership, with financial constraints making down payments difficult. They shared stories of families spending a large portion of their income on rent.

Habitat for Humanity’s mission to provide safe, affordable housing was underscored by a graphic presentation showing the organization’s reach across five counties, including ten homes built in Eagle Lake. Two additional lots have been purchased in the Fox Run development, one designated for a veteran family. The importance of community volunteers was reiterated, with a call to local businesses and individuals to support construction efforts or the organization’s Restore, a thrift store for home improvement items that aids Habitat’s mission financially.

The council also discussed amendments to city policies, notably the Minnesota paid leave mandate effective January 1, 2026, and adjustments to life insurance policy language. The paid leave mandate requires new policy language adoption, while life insurance coverage was clarified to exclude employees’ dependents. The council agreed on changes to the safety boot policy, allowing up to $200 annually for public works employees’ footwear, but deferred amendments to the life insurance policy pending further verification.

Further topics of interest included a proposed resolution regarding late fees on a utility bill for the Fox Meadow Association, arising from billing delays due to address changes.

Attention was also given to the Fox Meadows Housing Development, where a draw request for $20,000 in contingency funds was presented. The council expressed hesitation over releasing funds without adequate documentation of completed work, emphasizing the need for clear justification.

The meeting concluded with discussions on improving snow emergency procedures and communication. The council acknowledged resident confusion over parking during snow emergencies and emphasized the need for better public education about the timing and purpose of these declarations. A suggestion was made to allow temporary parking at City Hall during snow emergencies, though the city would not be responsible for clearing snowed-in vehicles.