One focus of the meeting was the discussion surrounding the city’s 2025 final budget and levy. The council was briefed on changes affecting the local tax structure, particularly due to a surge in market values for residential and commercial properties. A representative explained that the taxable market value has risen significantly, with residential property values increasing taxes by about $12.97 for every $100,000 of taxable market value. These valuation increases stem from a statewide requirement to assess properties at market rate, which lags by a year. As such, values from 2023 will influence the taxes assessed in 2025.

The council was informed that the tax capacity for residential properties is calculated as a percentage of market value, with homes valued up to $500,000 taxed at 1%. Properties exceeding this value are taxed at a higher percentage, resulting in larger tax bills for higher-value homes. These adjustments have shifted some of the tax burden from residential to commercial property owners, due to significant valuation changes in commercial properties following legislative amendments and numerous sales in the county. The council recognized that the city’s tax rate remains competitive, even as neighboring cities exhibit a wide range of rates from 41.9% to 80.97%.

The meeting also highlighted the city’s financial outlook, noting a steady increase in the city’s levy since 2017, correlating with a rise in population and housing development. Budget considerations for 2025 included a general cost increase of 3%, wage adjustments per union contracts, and a notable rise in health insurance costs by over 12%. The budget accounted for enhancing equipment funding, increasing the seal coat budget, and provisions for additional administrative staff. There was also an increment in the stormwater fee to manage the costs of aging infrastructure repairs. A notable financial improvement was the jump in interest income, which increased from approximately $23,000 to over $100,000, attributed to favorable interest rate changes.

In regulatory matters, the council delved into establishing a draft ordinance for cannabis regulation, with a deadline for finalization by January 1. The discussion included compliance checks akin to those for tobacco products and restrictions on smoking cannabis in places frequented by children. The council acknowledged existing county regulations limiting cannabis business licenses, and a public hearing was scheduled for December 19 to gather community input. The urgency of establishing a regulatory framework to prevent cannabis establishments near schools was emphasized, with the council expressing a need for a clear ordinance.

Infrastructure concerns were also significant, with the state of the Trestle bridge discussed extensively. An inspection report estimated repair costs at around $100,000, highlighting issues with rotting boards. The council is pursuing a Transportation Alternatives Grant to fund the repairs, contingent on support from County Commissioners. The local snowmobile club offered to assist with repairs.

The meeting also addressed public safety and community initiatives. The Zumbrota Police Department and Sergeant Pascali were commended for their efforts in impaired driving enforcement, with a notable award presented to Sergeant Pascali.

Additional topics included a successful fundraising initiative for the local pool, raising over $4,000, and plans for future events to continue these efforts. A local restaurant received a $38,000 loan from the Economic Development Authority to fix its hood and reopen, structured at a 3% interest rate over ten years, with partial forgiveness. This loan aimed to address the scarcity of dining options in the area.

Lastly, the council discussed the sustainability of reimbursement rates for Medicaid and Medicare transports, highlighting the financial challenges faced by local EMS services. A one-time grant allocation was mentioned, with results expected soon, alongside a restructuring of EMS oversight anticipated to begin at the start of the new year.