All rights for the pledge of allegiance. >> I pledge algiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
Unless was there any additions to it? >> There's no additions, Mr. Mayor, but under 7B, there's just a revised ordinance and it was attached and emailed to you before. >> All right. Can I get a motion to approve the agenda? >> So move. >> Second. >> All in favor say I.
>> Opposed. Motion carried. Open forum. If anybody would like to just publicly speak, this is your time. Okay. Consent agenda. Approve of the approval of the minutes, the bills, purchase orders, approve of the investments. There is a all the tobacco
license renewals were going on. Um there is two uh donation resolutions. Uh resolution number 12825-2. Uh where is it? Here. Um, oh, okay.
Sorry. Uh, -56 Mos Fire Relief Association of the Mouse Fire Department for a donation of $2,500 for a thermal imager. Then there's a donation resolution 2025-57 Mara Lions Club to the holiday kickoff
committee in amount of $1,500. And uh there's a step increase for police officer. Unless there's any questions, can I get a motion to approve it? >> So move. >> Second. All >> in favor say I. >> I. I oppos. Motion carried. It is 602.
We are on to a public hearing uh for the 2026 budget levy. Jackie >> Yep. We have to make the motion to >> open a public hearing. >> Yeah. Yeah. It's a public hearing. It's open at 602. >> Okay.
>> So, >> all right, we're ready. >> Okay. Thank you, Mr. Mayor and Council. Good evening. Welcome to the truth and taxation hearing for December 18th. Tonight, we will be discussing the city of Melrose 2026 budget and tax levy. The purpose of this hearing is to give
taxpayers an opportunity to become involved in the local government budgeting process and to better understand the relationship between budget decisions and property taxes. I wonder if yours is. >> It should be in there. I just
>> Thanks. The city of Melro's bud budget process is built on systematic goals of the city council public utilities commission staff and the city's residents. The process begins in June with the finance director providing revenue and expenditure projections to department
heads. A staff retreat is then held with representatives from all departments along with the city engineer to collaborate on upcoming projects and identify opportunities to minimize costs. The city council and public utilities commission then meet to review
each department's preliminary needs, revenue sources, and long-term capital goals. This year, the city council and staff held three work sessions to discuss the preliminary budget. The first in August, second in September, and the third in November. The preliminary budget and tax
levy were adopted in September. This information is then provided to Sterns County so truth and taxation notices can be prepared and issued to each property owner. The goal of this process is to de develop a budget that is achievable, considers future projects and spending
needs, and strives to maintain a stable tax rate for the city of Melrose taxpayers. As noted earlier, the purpose of this hearing is to increase participation by the public in the property tax system by reviewing the budget and proposed tax levy in a public forum
property taxation. How do we compare the city's next tax net tax capacity is used to calculate the city tax rate. As taxable market values increase, the city's next net net tax capacity increases. It is important to note that local governments do not directly set
tax rates. The tax rate is calculated based on the total levy amount. the funds needed from property taxes to provide city services divided by the city's net tax capacity. This rate is then applied to each individual property to determine tax
liability. The chart above shows a comparison of city rates for 2025 with other Sterns County cities. The orange dotted line represents the proposed 2026 tax rate for Melrose. As shown, Melrose remains on the bottom third of comparable
communities. Here you can see the city's taxable market value from 2019 to present. The Sterns County Assessor determines the market value for each parcel the year prior to taxes being payable. When the city's taxable market value changes, there will be an impact on the city's
tax rate. For 2025, the taxable market rate for the city of Melrose was $39,915,540. The above slide shows the changes in the cities of Melro's net tax capacity over recent years. The net tax capacity for
2025 was 3,431,028. For 2026, it is estimated to increase by approximately 7% to 3,676,45 $547. There are there are several reasons property taxes may vary from year to
year, including market value changes, voter approved referendums, and special assessments. Next, we will be discussing the proposed tax levy and general fund budget. The 2026 proposed tax levy for the
general fund is 1,594, representing a $144,000 increase from 2025. The debt levy is set at $80,000 which did not change from 2025. This brings the total proposed tax levy to $1,674,000.
Due to the increase in tax capacity, the overall tax rate experienced a minimal increase. The city of Melrose is for fortunate to carry limited debt. The general fund debt consists of a governmental bond with a current balance of approximately $440,000
which will be paid off in 2028. The city will levy for this debt through 2027. The city also holds a utilities bond through the Minnesota Public Facilities Authority. However, this debt is repaid through utility revenues and does not impact property taxpayers.
This slide shows historical tax levy trends. You will notice a larger larger changes between 2021 and 2023 due to legislative discussions surrounding significant reductions to local government aid and the anticipation of those losses. The city continues to
focus on keeping levy changes minimal and incremental. Since 2017, the city tax rate has decreased by nearly 36%, dropping from approximately 70.93% to 45.53%. In 2026, the total general fund revenue
budget is $3,6,353, an increase of $184,35 or 5% in 2025 over 2025. Property taxes are the largest revenue source for the city, which makes up 44% of the city's revenue. Intergovernmental revenue,
specifically local government aid, account for 34% of the city's revenues. The transfer from the electric fund for franchise fees represents 14% of the city's revenue. The continued growth of the mun municipal electric service helped reduce the city's need to raise
the tax levy. Other revenue sources consist of license and permits, charges for services, fines and forfeits, donations, investment income, and miscellaneous revenue. This chart shows the breakdown of city's revenue sources with property taxes
being the largest revenue source. Local government aid is determined by the state of Minnesota using a formula that compares a city's need with its ability to pay. This formula varies based on city size. The city of Melrose
2026 local government aid is1,175,53 which represents an increase of $4,436 from 2025. The 2026 general fund expenditures are budgeted at 4,173,151, which is 572,798
higher than budgeted revenues. This results in a projected decrease in unassigned fund balances. This chart shows the breakdown of expenditure sources. Miscellaneous expenditures including assessing cable communications and building inspection.
The higher street percentage reflects set aides for future equipment and road repair projects. Above is an overview of the general fund expenditure history. Expenditures are higher as the city invests in capital needs, plans for future projects, and
adds a police officer to support public safety. Proposed 2026 and other governmental fund budgets. The 2026 special revenue fund budget summary includes revenues and expenditures for the Melrose Area Development Authority and the Volunteer
Fire Department fund. These funds support economic and industrial development, redevelopment activities, and fire protection services for the city of Melrose and surrounding communities. The city's primary capital project fund is the capital improvement fund, which
accounts for most city of the city's capital needs. Revenues are projected to come in under expenses by just $160,000. The remaining capital funds consist primarily of TIFF funds supporting development projects throughout the city.
Lastly, we have one debt service fund for the levy and the payment for the debt service. Although the utility fund is overseen by the public utilities commission, we will briefly review it to provide context for the city's overall financial picture.
This slide provides a condensed view of the 2026 budget approved by the public utilities commission. Between 2025 and 2026, water, sewer, and electric revenues increase modestly, primarily due to higher operating capital costs.
One thing the city does along with the budget and budget planning process is look at the upcoming years and try to plan for future needs and projects. Estimated growth in tax capacity projections help determine the total levy needed. The city's goal is to keep
tax rates as flat as possible and avoid significant increases for taxpayers. The capital improvement fund is the city's main fund used for capital projects. Throughout the year, staff evaluate projects and equipment needs, prioritize the highest need needed
items, and identify alternative funding sources to minimize the need for additional debt. At this time, the city council will open the floor for questions and public comment regarding the proposed budget and tax levy. All right, let's check to see if anybody
in the public has any questions. Um, the only thing I would personally like to say is us as a a council, we really try to live within our means and and I think we've done a very good job about it. Um, I
look at our school district and our county, they're doing the best that they can. Also, um, you know, my fear is is what's coming out of St. Paul is really starting to make me nervous. Uh, it looks like the proposed there's going to be passing a lot of burden onto the
counties and hence looking at Sterns County may have to push more stuff off and and taxes may go off by um lack of um people doing their job in St. Paul.
So, just let citizens know that all of your local people are doing the best they can and um hopefully they can see um good results in our community and what we're doing. So, it is 6:14. We will be um taking action
on this in just a little bit. Rhonda reports Police Department Chief. >> Good evening. Uh November 2025 in a traffic area. 19 citations, 112 verbal warnings, 22 written warnings. Uh we ended this year on uh ICR, excuse me,
319 calls, request for service. Last year was 265. Uh the numbers you saw in your packet with 4186. Um last November, we went to a different record system. So they had to just create a number of some sort so they didn't crash together with the old
system, new system. So that one's slightly inflated, but uh we ended this year on 3308. Uh last year I believe we were at about um we're about 120 calls above last year overall. We were trying to compare it between the old system, new system and trying to get a decent
number in between there, but um overall um we ended on roughly ICR 39 or 33 something whatever it was. It was nothing too majorly different between the two. Uh 10 agency assist pretty common. Um we have been working on the 24-hour
parking. It's been actually going better than I expected it to. Um, that's where the 22 written warnings came in. And as you saw in the Star Post this week, we had seven citations related to 24-hour parking. Uh, December, we'll have a higher number than that. We did have one toe uh, in this event. uh the party was
on vacation and the family that was in charge of said vehicle or what the household chose not to get it out of the way and they're working through everything but um they should be getting their vehicle out of impound and those sorts of things and are well aware of what needs to happen if anybody in the household leaves for vacation again. Um
other people have come in with questions about it. Um we tried to explain it as best we can but it almost work almost explain it like odd even parking to them to an extent but uh it's been working better than expected and uh if we keep getting snows like we have been hopefully people can keep up and keep on
moving things. Um as of today we uh accepted resignation from officer Root uh he's been accepted with the Minnesota State Patrol. He'll be going to academy with them in early January. So we'll have an opening for uh that position which we'll be posting for um next week
sometime. Uh would hope the process goes smoothly. We have a potential hire out there for or potential candidate for your next council meeting in January. Um hesitant to say anything on squad cars, but uh the Durango we ordered in October
potentially could be here next week. The Ford we ordered in October of 2024 could potentially be here next week. It's in a rail yard in St. Paul right now as opposed to being in Chicago. So there's some optimism there. But, uh, I believe after the first year is more
realistic for any of that sort of stuff. Other than that, um, we got some end of year's vacations being used and whatever else and some training is getting wrapped up, but for the most part, we're sailing through the police department. Any questions? >> Well, long before the squad cars are going to service, if you did get them,
they have to go to get all the gear put on them, right? >> Yeah. So, the uh, fortunately, they're slow this time of year because of, you know, budgeting times and other departments, too. If we dropped it off today, it'd be done by the end of the week. Well, I shouldn't say that. We dropped it off on a Tuesday, it'd be done by the end of the week. So, they'll
once they hit the the spaces they're supposed to go, they're turned around pretty quick. >> Thank you. >> Anyone else? >> Okay. >> All right, Sheila. >> Community development director.
>> So, the planning and zoning commission meeting for November was cancelled, but we are back in business in December. We have three items on the agenda for next week. The Arts Council is moving ahead with their mural project and has selected a design. As you'll recall, we now have a process in place for murals
and it requires a public hearing and a conditional use permit. So, planning and zoning will be giving this a first review. Um, then they will set a hearing which will come then to you for final approval. We are also coordinating with um MATA and the council on a development
project which includes some streets and platting and zoning. So those meetings have been taking place and then also planning and zoning is required by statute to review the budget as well to make sure that the plans that you all put in place for the budget in terms of streets and projects uh fit the
comprehensive plan. So they will be going through that process on next week also at their meeting. It also makes grant writing much easier when the comprehensive plan lays out our goals and visions. And so speaking of grant writing, we are all in now. The
small cities grant was sent in, contamination investigation, the local road improvement, and a smaller one for a the new city park on the west side. So now we just sit around and we wait. We wait and we wait for those emails to come in. Um between the four of them,
they have rolling deadlines of coming out anywhere from late December to March. So we're just on the lookout for more opportunities to keep grant writing because I really do like to do that. The MPCA will be on site at 517 Main Street East either later this month or early
January to assess that property for environmental concerns. We really don't know if there are any concerns, but we're helping out the owner, putting them in contact with MPCA to check it out. Other than that, we continue to match up projects with open spots and
have conversations. Thank you. >> Thank you. city engineer report Dave. >> All right. Good evening. Uh kind of turning the book on 2025 into 2026 planning here. So you there on the agenda here we have a discussion on the
um 2026 street project which is a little bit further east of the hospital than last year and then one street on the north end of town that wasn't behaving itself. So more of the same mostly pavement rehab rehab. It should be a pretty quick project this year is the plan. So otherwise help Sheila with a
couple uh quick needs on her grant stuff. Otherwise they get a little quieter and that's okay. >> All right. >> Awesome. Thank you. >> Thanks Dave. >> Colleen city administrator report. >> The uh public utilities commission
accepted requests for qualifications from engineering firms for providing wastewater and water services. our longtime engineer that we have been with, we have elected not to renew their contract for 26. So, we did interview
two different firms and they elected to go with Nero Engineering. Um, it's actually Nurero combined with AE2s. So, it's two engineering firms together that are combined um to provide the services that we need. There is a water tower
maintenance um project that we elected not to um get or not to have an engineer work through an engineer on that project. We are actually going to be working directly with a contractor to get that
project done. And that's just a general maintenance on the water towers that we have every year. There's inspections that have to happen. Um there's some codings that have to be done, that type of thing. So that is something that we are looking at for that. The well test
well was dug for well number 10. And the good news is is it looks like um we can proceed forth with the the well itself because the test well did bring back really good results as far as what um gallons per minute that we were getting
that it was pumping out of the ground. So we gave the green light for them to proceed forth with the next phase of that project. Um, just as a reminder, the other part we talked about taxes this evening. The other two areas that
the city also controls are well, three actually, water, wastewater, and electric. And so in 26, we will see a 4% increase in electric rates. And then for the wastewater, we we will see a 5% increase. Again, for the very reasons
that Jackie had laid out, it's the same type of thing. you go through your capital plan, you go through your planning um to determine how those rates come about. The water is going to remain flat. So, we will not be doing anything with that. And then the rest of my stuff, Mr. Mayor, is on the council later.
>> All right, sounds good. We're going to action items. Um >> start. So, we're going to start with the 2025 uh 2026 budget levy resolution number 2025-50, a resolution adopting the tax levy and the 2026 budget/2026
2030 5-year capital improvement plan. Um so, the first action item is the council to take action on adopting the propo uh the proposed resolution prior to closing the meeting or closing the hearing. uh resolution 2025-58 resolution adopting the tax levy and the
2026 budget. Can I get a motion to approve? >> So move. >> Second. >> All in favor say I. >> I. >> Oppos. Motion carried. And the second part of is the council take action adopting the 2026 to 2020 5-year capital improvement plan. You get a motion to
approve. So move. >> Second. >> All in favor say I. >> I. >> Opposed. Motion carried. All right. And then we are on to a the staff uh the updated the 2026 fee schedule on the ordinance. Um did you
want to say something about that? >> So as part of the budget process, the other thing we look at also is fee our fee schedule. And in 2026 we do have um several changes. The first change that we have is an assessment search. We are
going from $20 that we charged in 25 to $35 in 26. um additional room rental fee. There is um it used to be that it was $25 is not cleaned and put back to original arrangement. We are now
charging $100 or recommending that we charge $100. We had a couple issues this last year and so we just want it's it's co you know it's labor intensive for us to do it and it costs cleaning etc. So, we feel that that needs to be high
enough that people are incentivized to make sure they put everything back where it's supposed to be. The on development side, on the residential permit side, there the fees that are getting charged higher um include roofing, siding, window replacement, retaining walls,
residential, residential, lots of residential things. And the reason that they are uh this is not something that we set. This is set by Inspectron, who is our building services group. Um, and it's it falls in line with what the
state is. So, you're going to see a $25 increase depending on what the what it is, you know, what the permit's for, but on the average, it's going to be $25 for a $100 permit. Um, park shelter fees, the we actually raise that
refundable deposit or recommending that we raise it. We're not going to change the fee itself for $100, but we're just recommending a $250 refundable deposit. Again, this goes back to a couple issues that we had
related to damage that was done in the park. Um the other part of that though is we are getting rid of the nonprofit organization. We used to charge them 150 and we're recommending that that actually be
brought down to 100. We used to charge for profits 200. We're recommending that be brought down to 100 with the larger refundable deposit. Large events um 300 and 100 refundable deposit. Again, we're saying 100 just to keep all those
consistent because whether or not you're a nonprofit, a profit, or you're using it for a large event, it's really relatively the same space. So, we felt that it was important that those all get treated the same. We have increased the uh we're recommending an increase of a
late checkout fee of $40 for camping. And also, we're recommending that if somebody is parking in an unauthorized spot that they get charged $40. We are also recommending that we have a dump station access. It's $5 per use.
Right now that's on the honor system and people are really good about it, but we just want to make sure we want to memorialize that in our fee schedule. Again, damage to the campground, if there's any actual damage, it's um going to be based on what the actual cost is
of the damage. The adult league fees um used to be 100 plus 25 per week after fourth week and a $100 refundable deposit. We are still recommending the 100 plus 25 after the fourth week, but
we are saying a $250 refundable deposit. Same with soccer. Um this is new as far as um this is new what we're recommending under street sidewalk excavating and openings. So
right now when somebody opens the street for a project um it's in what happens is our guys have to go out there and kind of take care of it. Um sometimes they have time to do that sometimes they don't. So we are recommending that the
council consider um fees for people are putting folks to put the escrow down. Not a fee it's an escrow amount. So they would we would hold that amount here. If it's a gravel road, we're saying it would be $600
and a one-year warranty. If it's a buminous road, we're saying it's $3,000 and a one-year warranty. Or somebody could just post a $5,000 annual bond. And then we just hold that. So then they are provided with the specifications and
um they incumbent upon inspections by a street department supervisor or or um whomever but it's um the inspection is done and if it meets our specifications and they put it back to what it was before they cut it open then they would
um we would give them that money back after we've gotten through the warranty period. So >> um yeah, you know, if there's if the city has to incur any of the costs, then we will deduct that from whatever that
escrow is. And then if the costs exceed what that deposit is, we will build them additional costs. But the idea is that we're trying to get um if our guys do it, that's one thing, but we're trying to get it so that the contractors are doing this work and putting them back
the way it should be. Would that be an example of like a water man repair or something like that? >> Exactly. That's what we're talking about here. >> That's just so that when the road gets redone, it's not like when someone's driving 30 down Main Street, all a sudden they hit a big bump because it
wasn't settled or >> Right. >> Um that they vent to the best of their ability. >> Does it apply to curb too or just the street? >> It um would apply Well, actually, we don't have the curb in here. That's a good point. We do have a curb
opening though. We already have on our fee schedule. I think curb openings are $15. Maybe it's a good question. >> I'm not sure I know that answer. >> That's all right. >> I do think there is already something in there for curing and we're not proposing
to do anything different on that. And I honestly don't know what that amount is, but there is a specific line item. The ones that you have that I'm talking about are just the proposed changes. So, I don't have the entire comprehensive fee schedule, but rightway permits are $15. An example of a rideway permit is
if somebody wants to put a dumpster on Main Street, right? Um, they want to put a sign. I don't know if we allow signs. It's really like dumpsters on Main Street. Um, what other examples >> that might block like if they're doing a construction project. >> Yep. >> They're not doing damage, but there's
blocking them. >> Yep. So, that would be a $15 fee. lowdosese cannabis registration, we are recommending $75 a year. So that's the same as um like spirit
liquor and those folks are allowed to have it, but we need to charge a separate per uh permit fee for them. So that's something we're going to bring bring back to you guys then next year because it's new and if you approve it, then it is a licensing requirement. So
we're going to have to go through that process. Um we're recommending some in the police department. Um there's several things that we're recommending we go ahead and increase. Um haven't been increased in many years. That's why you're seeing all these fee schedules in front of you
because we've left a lot of this the same for a long time. Um business district right now is 25. The recommendation is it goes up to 50. Exhibition driving is 50. We're recommending 100. And these are all cited in citations.
Snowmobile hours of operation is 25. We're recommending 50. Operation prohibited places is 50. We're recommending 100. Golf cart rule violation, we're recommend that's a new fee. That would
be $20. And golf cart no permit, there's a recommendation of $50. So that's um that is a recommendation there. Along with that, we also have um some increases as well in um parking
violations. Blocking hydrant, we're recommending that be increased by $10. So, it would go from 10 to 20. Second violation, it would go to $30 and third violation, it would go to 50. So, it's a $10 increase until you get to the third
violation, then it's a $20 increase. Handicap zone, right now it's $10. We're recommending 20. The second violation is 20. We're recommending 30. The third violation is 30 empalments towing and storage fees. We're recommending uh
third violation is 50 empowerment tow towing and storage fees. Again, this is all related to ordinances that we have. Other illegal parking right now. The first violation is 10, second is 20, third is 30. with empalment, towing and
storage fees. We are recommending in the new fee schedule the first being 20, the second being 30 and the third being 50 with the empowerment towage and storage fees. Snowbird right now it's 10 2030.
Um I'm not really sure what that means, Craig. So you might need to elaborate on that one a little bit. I'm not sure what a snowbird violation is. >> It's similar to our 24-hour parking violation. >> Okay. Um, so then that would be 10, 20, 30
respectively. And we're saying 10 uh 20 3050. So following along, these are all going to be pretty similar. Uh 3-hour limit is again 10 2030. We're recommending 20 3050. Overtime
parking right now is $10 for three hour, $30 for 24h hour. We're recommending $20 and $50. Seasonal is $10. Seasonal 3 to 6:00 a.m. $10 and we're recommending
20. Semi truck on street is 10, we're recommending 20. Parade route is 10, we're recommending 20. Crosswalk is 10. We're recommending 20. So those are the fees under the parking violations. On the fire department side, under fire
calls, rescue calls, hazardous material calls. Right now it's $400 plus $400 an hour after the first hour, maximum charge of 1,600. They would propose to go up to $500 plus $500 an
hour after first hour with the maximum charge being $2,000. False alarms and CO alarms right now are 125. They're recommending 200. Lift assist is 100 and they're recommending 125. That's in the fire department. On the ambulance side,
um there are there is also recommendation on some increase in fees as well. Um and a lot of the stuff related to the ambulance side kind of ties to sort of the reimbursement rates um that we're not getting and so we have
to increase some of those fees. Um, trip charge right now for basic life support is 850. We're recommending a,000. Advanced life support is 1,700. We're recommending 2,000. Advanced life support 2 um is a new one
that actually um because of our ALS service, we're able to have that as part of our fee schedule. And we're seeing that is 2,200. The mileage for BLS is 15. We're recommending it go to 20. The mileage
for ALS is 20. We're That's staying the same. I'm not sure why that's in there that way. Vehicle rescue call. That's the same. That's the same. Here we go. Lift assist. We're recommending it go to 150. Fire drill standby in their PSA
area, they're recommending 500. Fire drill standby out of their PSA area, they're recommending 750. a take-home fee of 500 um with very much limits set on that. That's to avoid, you
know, the hospital or nursing home or somebody calling us up and sort of using our ambulance as more like a taxi service, I guess, you know, um if somebody Yeah. Um providing service for all day events,
they're recommending 500 per day and then attendance at football games is 175. So, that's kind of where we're at. That's um quick, but um if anybody has any questions, I'd be happy or any of the staff would be happy to answer those
questions. All right. Ordinance number 1218 20221. An ordinance uh summarizing affirming fees for city license, permit, services, establishing a fee, fines, uh providing for review, modifications, amendment. Can I get a motion to approve?
>> So move. >> Second. >> All in favor say I. I I >> opposed. Motion carried. And then ordinance uh 1218 202252, an ordinance establishing compensation reimbursement for uh expenses for mayor, council members, and
other board and commission members. There's a revised attachment. >> Um I Jackie might have to speak to this one because I don't know enough about it. I don't know what the revision was. Jackie, I'm sorry. Um, it was just the
verbage like the numbers to match the dollar amount to >> Okay. All right. Was there any questions or concerns on it? >> Does it normally go up annually or not? >> It hasn't gone up in >> many years.
>> Many years. >> Yeah. So, and this will not take effect until after the 26 elections. We just wanted to make sure that it was on here so that it was there. >> I'll make a motion. >> Second. >> All in favor say I. >> I.
>> Oppos. Motion carry. C. Uh, hiring a city clerk position. >> We received 20 applications for the city clerk position and interviewed six applicants on Tuesday, December 2nd. Interview committee members were uh Jolene Wheeling as a representative of
the city, myself, HR coordinator Dorseand, finance director Jackie Kne House, and police chief Craig Mouse. CD director Helerman drove the candidates around and gave a tour of the city. Mayor Finen was able to come in after the interviews and discuss as well. Uh,
two candidates, Connor Cochler and Josh Bentley, participated in a meet and greet with the administrative staff on 1211, and the administrative team unanimous unanimously um ranked Connor as her number one choice to fill the clerk role. Connor was offered the
position at a starting wage of step one, which is 3508 per hour on the 26 wage scale. Following 6 months of full-time employment, and upon a favorable evaluation, it is recommended to move him to step two at 38.43 per hour. from
then he would qualify for step increases annually dependent upon favorable evaluations until step four in the wage scale >> to give um at this point I am requesting action to give consideration to hiring Connor Cockler for the city clerk
position as presented here. >> Can I get a motion to approve? >> So move. >> All in favor say I. >> Opposed? Motion is carried. >> Uh supplemental letter agreement for 2026 street improvement projects. Go ahead, Dave.
>> All right. Really similar to what we did last year. It is a uh lump sum contract for the design and the things we know about and then an hourly contract for the uh construction portion. So, we have a contractor that knocks it out in two weeks. It gets a lot cheaper for the city. Uh it's the same way we run all of
our contracts. So, hopefully pretty much standard in stores. >> Sounds good. >> Thank you. >> All right. Can I get a motion to approve the supplemental letter of agreement? >> So move. >> Second. All in >> favor say I. I.
>> Opposed. Motion carried. Uh new tobacco license. Uh who would like to talk about? >> I can talk about that. >> In addition to the renewals that were contained in your consent agenda, staff did receive an application for a new tobacco license at 315 East Main Street, the former Richard Bruters Butcher
Building. Uh they had to fill out um they had to provide us with a stack an application that included you know their federal, their state, their work comp um background check. When you do new tobacco licenses, it does require background check. They were also
provided with all the information related to what they are allowed to sell um and the cannabis rules. They it they're not they're not applying for a cannabis license. I I want to make that clear. other than they're going to apply like everybody else for the very low
dose that Spirit Liquor and and the gas stations have right now, but it's this is strictly a tobacco license. So, the council to give consideration to approval for a new tobacco license. Here's the odd trading doing business as city smoke tobacco for a new location at
315 East Main Street. >> Yeah. They wouldn't be able to get uh you know for a higher Yeah. for the flower or anything because that's too close to our park. So there's just and they've been aware that they know that that cannot happen there, right? >> Correct. Yep. They know the
documentation. That is correct. >> So everything's documented. I just don't want to, you know, somebody say, "Well, I didn't know that." But as long as they're aware, we know. >> Yep. The the tough part, I'll tell you, uh, with the cannabis registration, it
doesn't they they have not given any indication they're going through that, but the state makes them go through all their process and we're on the back end. So they could spend all this money getting a cannabis license and then they come to the city and we tell them no. So it's it's unfortunate. So Sheila's been
really good about trying to get ahead of that when a new business potentially is coming in so they're aware of it so that you know they don't spend all this money and then at the end find out they can't you know have a cannabis shop. But again this is not this is tobacco. >> Great.
>> Okay. No, that's that's totally understandable as long as they know. Can I get a motion to approve, please? >> So move. >> Second. >> All in favor say I. >> I motion carry. Uh there is no old business, new business. Um there is a
fire department officer's appointment. And um so they know Tom Woody is is the chief yet. and his choices for um officers are Joe Wii for first assistant, Cory
Becker's for second assistant, and Joe Matt for training officer. Um so he's made some good a good decision here. So um I trust >> we need action item on that. Sorry, I don't know if that was No, I guess that's just that's just for them. >> Yeah, that's just knowledge.
>> Okay. >> Um so then we are on to Minnesota paid family leave. >> Yes. So >> nice. >> Here we go. So, new min uh new Minnesota law will create a state administered
mandatory paid family and medical leave insurance program beginning January 1st, 2026. The program will provide job protections and partial wage replacement per benefit year up to a maximum of 20 weeks for family and medical leave funded in large
part by employer premiums and employee contributions. for each program leave type broadly their kind of family caregiving and medical and employ an employee can take up to 12 weeks of leave up to a combined total of 20 weeks under the
program. This program will be administered by the Minnesota Department of Employment Economic Development. We as a city have already notified all city employees of the law as required in state statute and that was attached in your packet. the remaining questions.
So, it's a discussion by the council. I don't expect you to make a decision this evening. I just want direction. Should be memorialized in anou and consideration should be given to the following. Are employees able to supplement their leave with other paid benefits? Sick leave, comp time,
vacation, and personal day. Should the city require an order as to how the benefits can be used? So, for example, right now if somebody is out on a medical leave, um what we tell them is you use up your sick leave first. That's
what you do. Um the uh the personal day or the comp time, the personal day, and then the vacation is the last thing they use. So, what folks can do is let's say they get a certain percentage through the paid family leave, they can supplement that by using their sick or
other type of leave that they have. Um, and so that's just I just need a little bit of direction because it's going to come back to you guys in January. I just wanted to know if if you're first of all fine with the supplement. um state statute does not require that you do that but I will tell you that um most
communities and most most folks are doing that because the idea is that if folks have leave you know they should be able to use it and then the only other is if there's an order and again I think that falls back to sort of our ESST
stuff so it should be you know you use your sick first then your vacation after that type of thing so that's just I guess kind wanted to get a sense from the council if they have any objections to us proceeding forth with kind of putting together an MLOU if there was
any questions you had or anything you needed to know. The employees are paying 044% as statutoily we can require and then we as a city are paying a little bit more than that because we elected not to go under the state program. We
elected to go with a third party vendor that has a lot more experience with this type of thing. And that was a recommendation from Nesbbit agency who is our insurance provider. So >> can you explain that again? You want to have them use their sick time before
applying for the paid. >> No, no, you cannot do that. >> Okay. I was going to say I didn't think you could do that. I'm like, >> no. They if they go on Minnesota paid family leave, right? They it might not be 100% of their salary. So then they can supplement it with,
>> you know, eight hours of sick. >> It's like 90% up to a certain threshold. Well, it depends. It depends on what category you're in. >> Yeah. Because once you get higher in wages, then you >> Yeah. >> Mhm. >> And you're asking if they can take sick time on top of the PE the family paid
leave. >> Yep. That's kind of I want a little bit of direction of how you want to how we want to sort of put together that MOU. >> I think that should be their decision. Shouldn't it? >> Shouldn't that be their decision? Well, we got to be a little bit careful
because of the earn sick and safe time too because they're allowed to have that as well. >> So, when they're gone, are they still earning it? >> I'm not I think they are. I >> I mean, if they're not here for that, you know, the 20 weeks, are they still
>> I don't >> Are they earning vacation? I mean, if they start using their vacation, does that mean that they can earn it? Uh, that's a really good question. >> I I wouldn't think so either, >> but the one thing I don't understand is
like being a firefighter, I have to pay into this, but there's no way I can use it, >> right? >> So, why should I have to pay as a firefighter for something that I cannot even use? I would love to have that question answered. >> So,
um, and I guess that's not a question. I guess I would just ask if you can check on um not that how do you say not double dipping but if you're taking it I don't want everything to be so so sunny that people
are finding ways to use it all the time and they're building more vacation and all a sudden people have a whole year off. >> Well, it's 20 weeks max. >> 20 weeks max. But >> for the paid family leave what if they have >> correct? So, if someone was seriously ill and they were out on paid family
leave, would their health insurance still be paid if they're not using >> sick time or something else in between there? >> Yeah. How is that getting paid? >> Cuz >> I I think on the insurance side, we are required to pay as a employer. I think
that's part of what's written in here. I thought like on long-term disability, >> the employer wouldn't have to pay for the uh >> the insurance and then it would be up to the employee. I guess I know some employees just where I work that supplement that by taking vacation time
in there so they're not totally using >> Yeah. >> the disability. >> So, it sounds like you guys have some questions and we probably need to come back with answers for those questions. Um, so >> but I understand
>> what some of the other cities are doing with that. >> Well, and this is all new for everybody. So, we're kind of all trying to navigate it. We're trying to understand it to the best of our ability. But I could um what I'll do is I'll Flattery and Hood can put together a really nice summation for us and I think I'll provide that to you at the next meeting and then you can
decide from there. >> So, yeah. So, I guess the question was is, you know, if they're gone for 20 weeks, how is their how is their insurance being paid? Because if they're not working and they're not using their vacation from us,
um how is it uh um anybody else? And can they use it on top if they're only getting 80% or 90%? So, they're using >> they're using their vacation. And so then since they're getting like time and
3/4, aren't they? >> No. Okay. >> It can't be more than 100%, >> right? It has to just match up to the wages. It can't go beyond that. >> Okay. But you burn PTO by hour, right? >> Huh?
>> Yeah. So they'd only get paid a fraction of their wage. >> Yeah. >> Yes. And I don't think St. Paul really knows how this is going 100% yet. So I guess >> but you know, good questions. I think um
we certainly can get um some answers for you guys for sure. >> And and does the league have those answers? I mean, >> oh there I'm sitting here going, "This is the league stuff now." Some of it they definitely do, >> but they're like us, you know, everyone's kind of going through this together. We're navigating it as a
group. And so, um, >> well, you see this with cannabis. I mean, what are we year number three and they still don't know what the heck they're doing? So, >> yeah, the paid leave program is really designed for longer term longer term or extended absences. >> Um, and it's based on eligibility and
necessity. So, a um that's where it's a little bit different. Like, if you have a sick kid at home for a day, you're not going to use your paid family leave for it. You're just going to take your sick day, right? um because there's a process to follow and you have to go through an application process to make sure you're eligible under the paid leave.
>> If they've applied for the paid leave and got rejected for the paid leave, could they retroactively use vacation or sick time? Then would that be permitted? >> That's a good question. >> Um well, if they've been denied
>> because it didn't meet whatever state, but it's still they took the time off ready. They're out of the office. >> Yeah. Then I wonder if the ESST would depending on what it is. Yeah. They can do certification, >> but the payroll is already completed, right? You've already
>> kind of creates some >> or regular family medical leave where they don't get paid, but they have a safety safety job. >> Those are really good questions. Obviously, um we can definitely get some answers for you guys and >> Okay.
>> I might even be able to have um somebody come in and do a presentation if you want, but >> Okay. >> Is there any other questions? >> I don't think so. I think that's pretty much >> And I think if you do think of something, please email Colleen on that.
>> So, unless that's it. uhformational items, school trainings, uh review of the 2026 meetings for the fire department. Unless there's anything else, can I get a motion to adjurnn? >> So move. >> Second. >> All in favor say I. I. >> Oppos. Motion carried. me on our
journey.