Finance Director Brian Grim presented the budget and levy details, emphasizing the necessity of adopting the levy before year’s end. The city’s portion of the property tax bill accounts for a significant rise, contributing to an expected total tax increase from approximately $7,000 to $7,500 for the median home value, now around $650,000. The council engaged in a thorough discussion about property value assessments conducted by Hennepin County, which impact tax calculations. The conversation revealed complexities in property evaluations, prompting a suggestion to invite county representatives to elucidate the assessment process in a future meeting.

In addition to levy considerations, the council addressed adjustments to the budget’s fund allocations. The proposed road levy of $625,000 was debated, resulting in a decision to lower it to $400,000, reallocating $225,000 to strengthen the general fund. This move aimed to achieve a 40% fund balance by the end of 2026, providing fiscal stability and flexibility. Concerns were raised about the potential implications for street maintenance planning.

Another topic was the fee schedule adjustments, notably concerning water rates, which are set to rise in response to the forthcoming third water treatment plant in Woodland Cove. Council members stressed the importance of these increases to ensure safe drinking water delivery. Despite the water rate hike, the sewer rate will remain unchanged, diverging from practices in other communities.

Attention also turned to the appointment of Jane Anderson to the Lake Minnetonka Conservation District, following Michael Kirkwood’s resignation. Anderson, the sole applicant, was interviewed and expressed her dedication to the conservation efforts surrounding Lake Minnetonka. Her appointment was confirmed later in the meeting.

Further discussions covered ongoing projects, such as the three-year lease agreement with Excel Energy for earthwork west of the city. This agreement, involving material stockpiling and shed construction, is expected to enhance the site’s future utility, providing an estimated $300,000 worth of improvements. The council noted the dual benefits of these enhancements and the lease revenue, despite some debate over site utilization specifics.

The council also highlighted community events and staffing updates, including the city’s annual tree lighting event. Despite unfavorable weather, the event proceeded successfully, with appreciation expressed for the public works team’s efforts. Discussions on rescheduling the event to avoid harsh winter conditions were noted, drawing comparisons to neighboring communities’ practices.

On the staffing front, the city’s public safety and fire department operations were reviewed. The council approved the hiring of a new police officer and discussed budgetary considerations for maintaining effective service levels. Additionally, the fire department’s operational budget and staffing changes were reported, with plans to purchase new vehicles for the department’s leadership.

The meeting concluded with a focus on the city’s financial planning strategies, including discussions on administrative charges related to the water treatment project. The council weighed the merits of increasing administrative fees versus potential budget deficits in subsequent years. Emphasizing transparency and fiscal management, the council underscored the importance of maintaining a robust fund balance to accommodate unforeseen expenses.