City Administrator Jessica Kzer presented several resolutions related to the truth and taxation notice, highlighting a 5.8% increase in the net tax capacity from 2025 to 2026. The city’s tax levy, initially proposed at a 10.4% increase, was adjusted to a 7.74% rise, translating to a shift in the tax rate from 49.5% to 51.3%. For homeowners, this would mean an increase of $23.13 in city taxes for a property valued at $250,000, while commercial properties could see a more significant rise of $41.77, assuming market values remain unchanged.

Residents voiced their concerns during the public hearing, with one individual, Janet Molen, highlighting her property tax increase of 21.575%, which she argued was six times the rate of inflation. Molen criticized the city for tying tax increases to rising property values, drawing parallels to economic narratives from Detroit’s past. Another resident, Tom Molen, emphasized broader economic issues, pointing to the Federal Reserve’s historical actions and expressing a sense of detachment from local governance. Janet Murray was also taken aback by a 27.8% increase in her property taxes, questioning the rationale given the lack of improvements to her property. Despite these concerns, the council moved forward, with Mayor Spooner acknowledging the public’s input and expressing appreciation for the staff’s efforts in managing these financial challenges.

In addition to the tax levy discussion, the council addressed proposed increases in user fees for water, sewer, and stormwater services. The proposed adjustments included a 2% increase for water and stormwater services and a 6% rise for sewer services. Despite these increases, the cost of water in Faribault remains competitively low, costing less than a penny per gallon. The council underscored the need for these adjustments as part of a broader capital improvement plan, which includes significant expenditures for sewer treatment plant improvements anticipated in 2030.

Shifting the focus to development projects, the council reviewed and approved resolutions for Whitetail Haven, previously known as Olsson Edition, to proceed with construction. The planning team confirmed that the project met all zoning requirements, and the council voted unanimously to support the resolution, allowing for the construction of an accessory structure.

Another noteworthy item was the amendment to the conditional use permit for Surat Academy. The amendment allows for the expansion of the facility by 6,000 square feet, accommodating up to 250 students and 25 staff members. The facility, located near Division Street, will retain its daycare services, relocating within the city rather than closing. The council expressed support for this educational development, aligning with the city’s goals for enhancing educational facilities.

Attention then shifted to the Axon services contract for the police department, which has been in place since 2018, providing body cameras, tasers, and a digital evidence platform. A new contract was proposed at approximately $162,000 per year. The council supported the contract, recognizing the importance of body cameras in promoting transparency and safety.

The council also reviewed proposals for a towing service agreement, ultimately recommending Glenn’s Services due to its competitive advantages. Additionally, the council discussed extensions of management agreements with Quality Aviation, the airport’s operator since 2000, with a proposed 5% compensation increase, the first since 2009.

Resolution 2025-339 addressed a well-sealing project at the old water pumping station, prompted by the Minnesota Department of Health. Despite the sole bid from Trout Companies exceeding estimates, the council recognized the importance of groundwater protection and approved the project to avoid losing state funding.