A primary focus was the proposed tax levy for 2026, amounting to $10,281,657, which combines operating and capital improvement levies. The finance director presented a balanced budget with a 0% tax rate increase, emphasizing the city’s sound financial position. However, the staff cautioned against budget variations, warning they could lead to larger levy increases in subsequent years. Council members engaged in a debate about whether to maintain the current budget or implement cuts. Others advocated for a 1-2% reduction in operational budgets.

Conversations also centered on the implications of rising property values, which have increased the tax burden on residents. Concerns were raised about the disconnect between property valuation increases and the financial strain on homeowners. A council member pointed out that recent home sales had inflated neighborhood valuations, prompting calls for the state to reassess its valuation standards. The council discussed the need for clearer communication with the public about how these valuations affect local taxes and the importance of educating residents on the intricacies of tax calculations.

The broadband initiative also received attention, particularly the complications arising from a withdrawn bid by the low bidder. The second-lowest bid was approximately $300,000 higher, totaling around $7.6 million. Council members were informed that no immediate action would be taken on the broadband project, but updates would be provided on how to proceed. Concerns were raised about potential tax increases if the number of participants falls short, as this could affect bond payments.

The meeting also addressed budget allocations for various city projects and services. A proposed cut of $21,000 to the city auditorium budget was discussed, with concerns about maintaining essential services. Additionally, potential reductions to the Dorothy Olsen Aquatic Center and the civic request for Wilmar Fest were considered. The total potential budget cuts ranged from $100,000 to $150,000. Despite these discussions, some council members expressed apprehension about further cuts leading to negative budgetary territory.

The fate of a position associated with the dissolved Main Street program was also debated. The position, previously held by Riley Kennedy, is under review for integration into the planning and development department. The proposed salary range was between $61,000 and $82,000, with benefits adding approximately 30% to these figures. Council members disagreed on the necessity and timing of filling the position, reflecting broader concerns about the city’s economic development strategy.

During the meeting, concerns were raised about the city’s approach to economic development, particularly in light of challenges faced by the Economic Development Corporation (EDC). Some council members argued for a more active city role in driving economic development. Discussions included the need for intentional reinvestment in the downtown area, responding to community feedback gathered during previous outreach efforts.

The council also discussed maintaining properties on the tax rolls, highlighting financial implications of the city taking ownership of additional properties. Members emphasized the importance of keeping privately-owned properties to maintain financial stability, while acknowledging the challenges posed by city-owned properties already removed from the tax rolls.

Finally, the council announced an open house for the Fourth Street reconstruction project, scheduled for the 18th, to gather resident feedback on design preferences. The council expressed gratitude towards public works for their efforts in changing stop signs.