Finance Director Dan Winnick presented the proposed levy increase of 9.88%, a rise driven primarily by personnel costs and street maintenance funding. “We want to be a little cautious on how much or how low we go here on this maximum levy because again we can’t go back up,” he stated, emphasizing that the council needed to certify a maximum levy that could not be increased later but could be reduced before the final budget approval in December. Winnick provided a detailed timeline for budget-related discussions, with key dates including September 17 for the proposed levy certification and a truth-in-taxation hearing on December 3. The final budget approval was slated for December 17.

Winnick explained that personnel costs were the largest driver of the budget, accounting for 4.6% of the levy increase, and were influenced by cost-of-living adjustments and union negotiations. The proposed levy increase was initially estimated at 7.6% before department heads submitted their budgets. Other factors contributing to the rise included legislative changes affecting local tax rates and the Homestead market value exclusion, which altered the calculation method, potentially impacting residents’ property taxes despite a modest median home value increase of 1.5%.

The discussion also covered comparisons with other cities in Ramsey County, where proposed levy increases ranged from 4.65% in St. Anthony to 15.7% in White Bear Lake, with a median increase reported at 10.38%. Winnick highlighted the importance of strategic planning to keep rates stable and maximize benefits from the fiscal disparities pool, which saw an increase of $231,000, contributing to a 3% levy change.

Further, the council discussed the general fund’s heavy reliance on property taxes and intergovernmental revenues, which together account for over 78% of its revenue. Personnel costs, comprising 64.5% of the budget, were largely driven by rising cost-of-living adjustments tied to union negotiations. The Housing and Redevelopment Authority (HRA) levy was proposed to increase by $50,000, a move some members suggested might be unnecessary for 2025. Conversely, the Economic Development Authority (EDA) maintained its levy at approximately $21,000, with discussions on potential reductions under consideration.

Infrastructure improvements were another key focus, particularly the 2025 Street and Utility Improvement project. The project aims to address aging infrastructure, involving the repair, upgrade, and full reconstruction of streets and underground utilities, including water mains and sanitary sewer services. Special emphasis was placed on Gerald Avenue, where urgent sanitary sewer improvements had been completed earlier. The project, estimated at $6.5 million, also includes upgrades to the storm sewer system to meet requirements from the Ramsey-Washington Metro Watershed District, with a strategy to complete necessary upgrades now to avoid additional permitting work in 2027.

The city engineer provided an overview of the project scope, noting significant work on various streets and utilities, including the sanitary sewer improvements such as lining existing pipes and replacing individual services beneath the road. The project also includes water main replacement to improve drinking water quality, particularly addressing issues related to high iron content and discoloration in the area. Sidewalk improvements were also planned, with existing sidewalks scheduled for reconstruction due to trip hazards and new connections proposed to enhance pedestrian access to Casey Lake Park.

The meeting also included a report from the Office of the State Auditor on the city’s spending practices. The city attorney provided an overview of the findings from an investigation prompted by complaints about financial practices. Although no evidence of theft or fraud was found, the report highlighted a lack of proper documentation for city expenditures, particularly credit card use. The attorney emphasized the need for better documentation practices and adherence to financial policies, with a focus on education and strict enforcement moving forward.

During the public comment session, concerns were raised about the discontinuation of Zoom for public participation in meetings. A resident criticized the lack of communication about this change and its impact on disabled individuals or those unable to attend in person, questioning the city’s approach to public engagement.

Operational updates included plans for a memorial service honoring Officer Richard Kiten, the progress of the Autumn Arts Festival preparations, and the ongoing Booya event organization. The Public Works department reported on storm recovery efforts, including the removal of ash trees affected by pest infestations, funded by a $400,000 grant from the Minnesota Department of Natural Resources.