The council’s deliberations on the city’s budget were thorough, as members grappled with the financial implications of various expenditures and the potential impact on city services. The preliminary 2026 budget was presented, highlighting the need to certify it to Rice County and the Department of Revenue by the end of September. The council examined specific budget items, including funding for aerators at the wastewater treatment facility, street maintenance costs, and the necessity of maintaining civil defense sirens.

One of the more topics was street maintenance, with a projected cost of $155,000. The council considered the possibility of using assessments to help fund these expenses, though this would generally involve issuing debt. The council acknowledged that while the city operates on a tight budget, further cuts could impact service quality.

Attention also turned to the Veterans Memorial Project, with some members proposing its postponement until 2027 due to financial constraints. The project, estimated at $30,000, faced challenges as the city reached the limit on available pavers for veterans’ names. Suggestions for fundraising through local events, such as farmers markets, were discussed as potential means to gather additional funds.

In parallel, the council approved the sale of a 100-foot-wide parcel in the Lonsdale Business Park for $60,000 to Circle City Outdoor Minnesota for the construction of an outdoor dynamic billboard. City Administrator Joel Ericson explained that the buyer would have the right to access the property for inspections, with the closing date set for October 31st. The billboard would be taxed as personal property, which would minimize the property tax burden.

The meeting also addressed the Economic Development Authority’s budget, which faced a proposed cut from $50,000 to $40,000. The council explored the possibility of using remaining funds from the city hall purchase for various equipment purchases, including three aerators totaling approximately $100,000. Discussions included the need for repairs to the fountain and planters, and the potential for a special EDA meeting to address these issues.

The council weighed the implications of maintaining the current tax rate, with a proposal to keep the levy at 5%, the same as the previous year. This decision was met with appreciation, especially as other taxing authorities, like the county, faced increases. The council also considered tree removal within the city, with a budget allocated for this task.

Concerns about financial sustainability were a recurring theme throughout the meeting. Members expressed caution about relying on reserves, recognizing that while using them might not immediately harm the budget, it raised concerns about long-term viability. The unpredictability of market conditions and the uncertainty of potential developments were acknowledged, with a shared understanding that the city must diversify its tax base beyond property taxes.

The possibility of applying for more Local Government Aid (LGA) was briefly discussed, though it was noted that such funding is formulaic and not easily adjusted. The council also addressed the readiness of furniture for a newly appointed police sergeant, with assurances that existing furniture could be utilized as needed.