The council’s approval of the 2026 budget was a focal point of the meeting. The budget, presented by city staff, outlined total projected expenses of $12.96 million and a proposed levy of $2.889 million. This marked a $25,000 or 7.6% increase in the levy compared to the previous year. The breakdown of the budget showed a 2.86% operational increase in the general fund, which covers essential city services such as police, fire, and parks. Notably, the general fund levy decreased by $28,476, attributed to alternative revenue streams like grants and increased campground revenue.

One significant infrastructure initiative discussed was the Birch and Pine Street project, which influenced the debt service levy. A new bond for this project led to a net increase of $234,000 in the overall debt service levy. Additionally, capital project funds saw a decrease from $9.5 million to $2.7 million due to expenditures on the Birch and Pine project in 2025. These financial decisions highlight the city’s efforts to balance immediate infrastructure needs with long-term financial planning.

In further discussions, the city engineer provided updates on the Trunk Highway 71 feasibility report, a infrastructure project. The draft plans for sanitary and water main layout were nearing completion, with preliminary storm sewer designs also in place. Coordination with the Minnesota Department of Transportation (MnDOT) was ongoing, and detailed cost estimates were expected in future meetings. Challenges related to storm sewers running under private properties were identified, prompting proposals for a new storm line to minimize property disturbances.

Another important topic was the discussion on liability insurance coverage for the city. Mark Maloney from the Minnesota National Agency provided insights into the city’s property and casualty insurance, revealing a projected decrease in rates for most job classes. Workers’ compensation programs are set to decrease by 25%, while auto damage rates would increase by 10% due to industry trends. Following Maloney’s report, the council debated the necessity of excess liability coverage. The League of Minnesota Cities offers higher coverage limits than statutory requirements, which safeguard against major incidents involving multiple injuries. Concerns about the cost of excess coverage were addressed, with a 4% cost increase projected for 2026. The council ultimately decided to continue waiving the statutory tort limit and purchase excess liability insurance, a decision consistent with past practices to protect the city against unforeseen liabilities.

The meeting also addressed several resolutions concerning financial matters and city planning. Resolution 2025-107, which established the final tax levy for 2026, was approved unanimously. This resolution was followed by the adoption of resolution 2025-108, updating the budget with insurance adjustments and culminating in a total expense budget of $12,965,356.30. Despite some council members voicing concerns about the budget increase due to recent projects, the resolution passed with a majority vote.

Further financial resolutions included inter-fund transfers and adjustments to accounts receivable. Resolution 2025-109 approved transfers totaling $1,112,400, necessary for routine year-end financial management. Resolution 2025-110 addressed the write-off of bad debt. Both resolutions passed without opposition.

The council also approved resolutions for minor subdivisions, such as the request from Harland and Jennifer Hector to split a parcel of land on Birch Street, and a subdivision related to the construction of Tractor Trail and Cana Avenue. These approvals demonstrate the council’s attention to urban planning and development.

In new business, the council discussed tabling the budget for the author’s edition phase two final plat and infrastructure until the Economic Development Authority (EDA) could review the costs.

Lastly, the council addressed staffing needs within the city’s paramedic services, approving the appointment of Daniel Starka as a part-time paramedic.