The council’s discussion on the proposed organizational structure revealed various viewpoints on the city’s governance. A central proposal was to have a city administrator/clerk and a newly suggested director of finance/treasurer report directly to the council. This structure aimed to enhance oversight and provide a checks-and-balances system, particularly for key financial decisions such as land purchases and the parks master plan. The conversation highlighted the need to avoid adding bureaucracy while ensuring direct council involvement in financial matters.

Outsourcing human resources (HR) functions was also a key topic. One council member, drawing from private sector experience, argued for HR’s independence from the city administrator to ensure impartiality, especially in conflicts involving department heads. The potential for cost savings and access to specialized expertise through outsourcing HR functions was emphasized, although the need for in-house HR functions like onboarding and offboarding was acknowledged.

The council explored returning to a clerk system instead of an administrative model, placing residents at the top of the organizational chart. This approach was seen as a means to enhance operational effectiveness and address challenges within the city administration. Concerns about employee morale and reporting procedures were noted, with past personnel policies allowing multiple reporting pathways for employee grievances cited as beneficial.

During budget discussions, a focus was on the preliminary levy for the upcoming fiscal year. The council debated setting the preliminary levy at 6.04%, with differing opinions on whether this figure was adequate. Concerns about the impact of taxes on residents were raised, with one member highlighting public sentiment against high levies. A motion to set the levy at 6% was proposed, reflecting a desire to balance fiscal needs with taxpayer concerns, though the council ultimately settled on 6.04%, considering ongoing contract negotiations and potential budget cuts.

Financial considerations extended to the city’s admin clerk finance budget, with a proposed wages line item of around $312,000 to $313,000. Potential savings of approximately $40,000 through structural changes were discussed. Additional budget adjustments included maintaining the capital reserve for a new computer and eliminating allocations in planning, zoning, parks, and the community center, collectively suggesting savings of $131,000. The potential for a new Minnesota law on paid family leave to yield $12,000 in savings was also noted.

Further deliberations involved the attorney budget, which had increased from $35,000 to $50,000 due to high city staff turnover. A proposal to reduce this to $40,000 was discussed, aiming for a $10,000 saving. Additionally, the council considered delaying the implementation of flock cameras to assess results from Crow Wing County’s similar project, with potential fundraising suggested as a way to support the initiative without increasing the city’s budget.

The meeting also addressed the city’s cash position and potential fund transfers. The possibility of moving $500,000 from the Spirits of Nisswa account to support park projects was debated, though clarification on fund availability was needed. Concerns about relying on annual levy contributions from local businesses like the pickle factory and Spirits were raised, with suggestions to gradually reduce this reliance over five years.

Lastly, the council discussed the importance of setting a preliminary levy by the September 30 deadline, emphasizing the need for flexibility to adjust it downward if necessary. IT and security updates requiring around $50,000 were noted as urgent, highlighting the need to allocate reserves for compliance with federal standards.