At the heart of the meeting was a discussion about the city’s budget, which projected a considerable deficit of approximately $50,000 for the next fiscal year. The deficit was largely attributed to increased expenses in street maintenance, which saw a rise of $100,000 compared to the previous year. This prompted suggestions to either reduce the street maintenance budget or tap into the sewer department’s fund balance to offset the increase. While there was confidence among staff that the deficit could be managed down to zero, the council was urged to prioritize cuts and maintain a lean budget focused strictly on essential services.

The urgency of economic development was underscored, with comments highlighting the need to alleviate the tax burden on residents and business owners. Council members emphasized the collective responsibility of the council, city staff, and advisory boards in driving economic growth. As the deadline for submitting the preliminary levy to Rice County approached, discussions centered on balancing budget needs with the community’s ability to absorb costs, including examining the implications of a 1% tax levy increase. The council was challenged to collaboratively identify areas of the budget that could be reduced to achieve balance.

Another focal point of the meeting was the approval of a purchase agreement for the old city hall located on Central Street West. The proposed offer of $275,000 came with a 1% earnest money deposit, with the closing date set for on or before October 28. The council addressed conditions regarding closing costs and property boundary adjustments to ensure the buyer would have sufficient access without infringing on adjacent properties. Concerns about moisture issues in the property were noted, alongside the absence of transferable warranties for prior repairs.

The meeting also covered various budgetary elements, including a review of the police department’s budget. Federal funding of $140,000 aimed at purchasing body cameras was discussed, pending federal approval. The police department proposed internal restructuring with the potential addition of a sergeant position, alongside plans to issue firearms, with a quote of approximately $8,300 for nine Glock handguns. Concerns arose over furnishing costs for the sergeant’s office and records receptionist area, which were not originally included during the police department’s construction. The council debated the financial implications of these expenditures, with some members voicing reservations about the rising costs of office furniture.

Further discussions included the anticipated conclusion of the T-Mobile lease for antennas on the water tower in 2026, which generated $45,000 in revenue for the city this year. The removal of these antennas raised concerns about potential impacts on cell service, although it was confirmed that the antennas had not yet been dismantled.

The council also tackled infrastructure and utilities, including a projected deficit of approximately $340,000 in the water department, attributed to expenses tied to auto-reading technology transitions. Discussions extended to potential developments such as a second water tower and a water main loop, with preliminary evaluations suggesting Highway 19 as a cost-effective option for development. Approval for a resolution supporting bonding requests for these projects was anticipated at a subsequent meeting.

In terms of road maintenance, the council considered increasing street maintenance funding by $100,000, focusing on the southeast portion of town. The fairness of assessing costs for mill and overlay projects against property owners was debated, with previous assessments cited as contentious. The council acknowledged the need to maintain community standards while managing financial constraints.