During the session, the council examined the financial implications of merging the city’s public safety department with Lester Prairie, which led to a drop in public safety revenues to zero. This restructuring requires a separate fund for future accounting, akin to the current setup for the fire department. Despite this adjustment, the majority of the budget remains allocated to public works and general government operations, with public safety being a significant component of the overall financial plan.

The council reported an anticipated increase in general government revenues by approximately $190,000. However, they also noted a 28% reduction in parks department expenditures, attributed to the city assuming its mowing operations. This change counterbalanced rising costs in public works. The council emphasized the importance of setting a preliminary property tax levy by September 30 each year to facilitate the distribution of tax statements, with the possibility of lowering the final levy but not exceeding the preliminary figure.

The general property tax levy is expected to increase by 5.72% for 2025, while the debt service levy will decrease by 2.9%. This strategy aims to manage financial obligations while addressing inflation and other economic pressures. The council underscored the necessity of balancing these factors to maintain the city’s financial health.

Resident inquiries during the meeting reflected concerns about the potential impact of these financial adjustments. One resident expressed appreciation for the correction of an earlier property levy increase figure. This resident also questioned the cost implications for Winsted residents stemming from the addition of three new police officers as part of the public safety merger. The council clarified that such changes are integral to the restructuring process but assured that efforts are being made to manage costs effectively.

Another resident highlighted variability in tax increases across properties, noting a perceived 15.4% increase. The council explained that county assessments of property market values directly influence individual tax burdens. Variations in property value changes among neighbors can create discrepancies in tax increases. The council emphasized that these assessments are beyond the city’s control yet play a role in determining tax distributions.

In addition to financial matters, the meeting addressed several other agenda items. The consent agenda was swiftly approved, encompassing the approval of meeting minutes, a donation to the Winsted Volunteer Fire Department, the declaration of surplus equipment related to the G or G1 grass rig, and the claims list for December 3, 2024. These items were unanimously approved, reflecting routine procedural business.

The public works department provided a report on completed projects, including sidewalk removal, hydrant flushing, and the removal of ash trees affected by the ash borer. The department also reported the completion of the County Road 5 project and the installation of a new gate at the water treatment plant. They noted the acquisition of a grant-funded lawnmower for the airport and detailed ongoing sweeping operations.

Questions arose regarding the ash tree removal process. It was clarified that external services were employed for this task, though there is hope for future grant availability to offset costs. The discussion also touched on plans for trimming weeds and shrubs on the lakeside boulevard, with professional services to be hired in the spring.

The meeting transitioned into a public hearing focused on the truth and taxation process. A representative presented the recommended 2025 budget process, outlining expenditures, revenues, and property tax levies. The presentation detailed the timeline for budget preparation, emphasizing that preliminary levies are often set higher to allow for adjustments.

The budget includes considerations for increasing employee wages and benefits and capital improvements, particularly in parks and streets. The council noted budgetary increases, including adjustments to council member wages, which had not been revised in many years, and enhancements to park facilities through capital improvement fund transfers.