This conference will now be recorded. >> I've got six o'clock. We'll start with the pledge of allegiance. Pledge allegiance 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. >> I don't believe there's any amendments to the agenda. Uh, no. I think everything's everything's okay. >> Just need a motion then to approve the agenda. >> Motion the agenda.
>> I'll second. >> Uh, all those in favor? I >> passes 4 Z. Uh, public comments. I'll open the uh meeting for public comments. Individuals may address the city council about any item of concern. Speakers must state their name and please limit the
remarks to a few minutes. Any public comments? If you're here for budget, we can do that during the public hearing. >> All right. >> Did you have sir or the next one? Okay. Um we'll close the public comments
portion and uh we will move on to the consent agenda. Uh all items listed on the consent agenda are considered routine by the council and will be approved by one motion. There will be no separate discussion on these items unless a council member requests. So I can't ask that one question on
which one. >> Yeah, let's just do it. Just what's the question? >> I just want to know we went to three days. How much that What did we used to pay? >> Oh, we used to pay 10 I can't remember what it was 108,000 something like that.
And now it's at 74. >> I'll make a motion to approve the consent agenda. >> Second. >> All those in favor? >> I. >> Passes 40. Uh, accounts payable. Joan,
>> accounts payable. I just had a couple to mention. 822221 is uh for $31,334.81 and it's us more water meter supplies. And the other that was larger is a
Schumach Schumacher excavating 82273 in the amount of 38,511. Everything else was uh very normal looking. Anyone have any questions? >> I just have one comment on the Ninth
Street project. Both the Champa and the the city Ninth Street project came in under budget. >> Oh, awesome. >> Good thing. >> Awesome. If there aren't any comments, I would make a motion to approve accounts
payable in the amount of 159,1948. >> Second. >> Uh, all those in favor? >> I >> I passes 40. Uh, I will now open the public hearing um for the final 2026 budget and levy.
Aren't you excited? >> Of course. >> All right. So, tonight we have our budget summary. Um, as you know, um, I always go over a little bit about how taxes work for our residents. Um, the state of Minnesota funds most of our
cities through property taxes. And the way it is set up is that for homes under $500,000, um, you have a tax capacity that is 1% of your home value. When you get a house over $500,000, then it changes a little
bit the calculation. But of that 1% of your tax value, what the city does is we take our um our tax capacity, which that is all the one everybody in town's 1% of their tax value. We it's all added up. That's our tax capacity and it's put
over our total tax capacity. So we have a total tax capacity number. And then we take our levy and we make a we make a fraction. We put it on top of our levies on top of the total tax capacity and that gives us a tax rate. And then what we do is a it's convoluted, but we say
take the tax capacity from your property. So say you have a two a $300,000 property. Your tax capacity is $3,000 for the city. So, we we have a tax rate and we have let's say it's a 50% tax rate for the city. So, you take
your $3,000 times 50% in your city portion of taxes would be $1,500. That's how the state figures it out. It's all done by the state. Homes over $500,000 that increment over $500,000 that has a tax capacity of 1.25%. Just
the increment incremental part, not the whole thing. Uh properties commercial are mostly at 1.25. 25% as well. So, um I always say that lots of people think that they pay their taxes and what their entire tax bill they think they give it
to the city, which is not true. There's three independent players in here, the city, to county, and the school districts. They do not consult together. They do their own thing. They run their own financials and that's how those are put together. These um all of you probably got your proposed property tax
in the mail. Yep. And that is the combination. The county takes all those numbers and puts them together. And the county bases their values of our homes on the marketable sales in the last 18 months. From 2024 to 2025, we did not see an increase in market value. The two
years prior, we saw pretty significant increases in our property value, but that was adjusted due to market sales. So that's what things are selling for. That's how they do it. It's not based on much more than that. So if you want to protest your value of your home, the time isn't now. You should have done
that in April, but now for next year, you can protest. It's always a lag. So, you go and you you can you can ask questions about your property tax value. The next April, you'll get a statement in the mail with your proposed value. Um, so everything all your tax records,
they're all public knowledge. You can go on the county website. You can look up anybody's tax record in there if you know the address or you can go on the the GIS map, you can find it. You can look up any It's not privileging information. is public. So in uh 2025,
our levy was 2,839, and uh 92. When we originally certified our levy, it was more than the preliminary levy we have. Uh as we know, when we certify our levy in September, we cannot go any higher than that in
December. So we always tend to sit a little bit higher so that we can can ease back. Unfortunately, when people get their property tax statements, they see that higher number on there, and so that can cause some concern. But we were
able with the um not bidding the doing the pool bonding this year, we were able to reduce the tax levy and we were able to um reduce based on moving at one of the public we kind of reorganized the public works employees and that brought down our tax levy about $200,000. So we
went from a 8.4, four or excuse me, a 14.35% levy increase to an 8.4 levy increase. Now, it doesn't mean your taxes go up 14% or your taxes go up 8%. It's all based on that whole levy thing and the whole formula. So, you aren't going to
see an 8% increase unless the town doesn't grow. There's no taxable market value added, nothing. Everything stays the same, then you're going to see an increase. But otherwise, no, you're not going to see a a giant increase on there. I believe that most people's
taxes came back. The city did increase. I believe the county had a slight increase and the school portion went down, I believe. Um, but overall, the increases weren't hugely significant. I'm not trying to be callous about anybody on an income. An increase in
expenses is an increase in expenses. But we also have a growing community and we're trying to provide services. The main driver of the increase in the levy amount from the year before was the addition of a proposed addition of a police officer as well as increases in
healthcare which everyone knows that's everywhere. Um as well as a wage study uh we had a an audit which you will be presented at the next council meeting. Um our audit was pretty inexpensive which I knew going in our auditor has
retired. Since then, we went out and got a request for proposals and the proposals range anywhere from well, we had our our old audit cost $25,000 a year. So, the new proposals went anywhere from $38,000 a year to $72,000
a year. So, um there was this increase in that. We were able to uh cover that using taking some money out of contingencies that I had put a little extra in there because I didn't know what the what the audit was going to do. So
there you go. 17. Okay. So the police, there we go. The police with the increase of that officer as well as some increased subscription costs, they have a 17% increase in their their budget, which is not unreasonable considering considering the addition of an officer.
Um there's their wages in 2025 and their wages in 2026, which is a 15.4% increase. uh they have they have uh dues of 6471 in 2025 which is things for their tasers
or dues or dues and subscriptions. Um we did increase that in 2026 because their taser dues uh that was all restructured and so that was a pretty big increase in the budget. >> The body cam. >> It's a body cam. You're right. The body cam. Thank you, Brian.
um administration. We didn't we didn't do much of anything, but we also moved Miles more. Well, we did do a lot. Last year, we hadn't hired Miles yet, so we had that position uh divvied up a little differently. So, we we fixed it.
We got him half and half, some in planning and zoning, some in administration. So, that's why you see a lesser increase in that. Um, in 2025, our training travel dues were 74.26. There is an increase of $2,000 because we have more people to go
places and educational things are expensive, too. Streets, you're going to see um they had an increase, a very slight increase of 2.5%. Now, you're going to see that that is going to be driven a little bit by the change in the structure of the
public works. Um the next slide we see that wages in 2025 were uh 265 732. In 2026 they're 226 359 which is a decrease that is due to restructuring and moving one employee part of that employees time into the
water fund because that employee is going to be taking on more water related activities. Uh we are seeing we're trying to get our vehicle and our capital equipment uh schedule in um more in line. Now the sewer fund and the water fund both
contribute to the capital equipment schedule and the general fund does as well. The general fund gets a bigger share. The um water and sewer is probably their contributions together are probably the same as the streets department and that has to do with it's
the plows. The plows are a big ticket item and it's a street sweeper. They're big ticket items but those are directly street expenses. So we have to reflect it in our savings plan. And I think this was a planned increase. >> This was a planned increase capital planning. >> Yep. And we're currently we've went
through all the Jeff and I have looked through the and Chris and their their guys have been great. They've went through all the equipment and we're in the process of re reccalibrating our equipment schedule. Um there's some different changes that they want to make and different ways they can do. So they
can go in there and hey, I only got we need this but this is coming up. How can we make it work? So, they're going to work on moving things around. So, that will be happening in the next couple weeks. We'll have a new schedule kind of set up which will also affect our budget going forward, I think, in a good way.
So, capital equipment. Yeah, we had a big budget. That's a big ticket items. Um, our new Jeff, how much did the new cost? >> The one we just got was sh over 300. >> Yeah, they didn't use. So, as we all know with fire department, with police stuff, our equipment costs are rising
phenomenally. And so, we are finding that we have to put more away to afford the equipment. We have to replace it. So, we fix as much as we can, but as we know with our old street sweeper, eventually you couldn't fix it anymore and we had to go out and buy a new street sweeper and that was 300,000 as
well. >> And I do want to note that that that new plow was way cheaper than it would have been had we bought it somewhere else. We have a lot of bells and whistles on there that would would not have otherwise had and and the guys have been great about searching that stuff out. Whatever piece of equipment it is. Uh if
there's a good used one out there, we go after it. Um and uh you know, so everything's not always new. Doesn't have to be always new. Some things need to be because they're they're going to last then. Um but they do a nice job of of searching out the the cost savings on those things. So
>> So we're seeing an increase in that of 6.03%. So impact to residents of our tax levy for a $3,000 home, we're going to see about $493 thou $493.60
per thousund,000 value. So our proposed final city tax be $1,581.19, which is a 52% tax rate. Before when we had the before we made these adjustments to the budget, we were at about a 55.62%
62% increase. Um, so that gives the person about a $10053 dollar 53 cent increase for the year in their city taxes. Remember, we're not taking into account uh county or school.
Um, and that would give us about $8.38 a month. So, and so where will your taxes go? Miles thought of this. I think this is a great idea. People kind of want to know. Uh, in 2026 worth a $300,000 home, you're going to
pay $1,581. Here's where your taxes are going. Administration $233. Police $479. Streets $181. Planning and zoning, $41. transfer to other funds, which are transfers we make
within the funds to fund different projects. That's all built into our schedule. Um, that is $154.96. Um, so the monthly bill is $131.77. And my has done a really nice job
breaking that up into each individual compartment there. >> Yeah. Uh you'll also notice it doesn't equal 1581 on that if you do the calculation, but there's other funds that things go to. It just isn't. This is just for the general fund. Yeah.
>> So all our other ones are restricted. So this is just for >> basically our discretionary money that we get to spend >> rather than the entire of that 1581. Those to go to like water restricted. Yeah. All those special things that we can't take money out. there's funds
going in in and out of different funds for things. So, it's kind of difficult to break it all down really really tinyly because like for administration you think okay that's uh Brian Miranda and I. Well, really it's not. It's all publishing, it's the council, it's the
mayor, it's the city engineer, it's the city lawyer, it's the auditor. So that those take a big broad perspective. So that's all what comes in out of the administration fund. So reading your tax statement, I I did
mine. So there was what I got, my actuals, and then there there was my per proposed. So my house is about $267,000 right around in there, maybe a little less or a little more market or adjusted market value. The
other thing to realize too with people that they don't know is as we get into higher value homes, you lose your mark your homestead credit. So you kind of get a double whammy because the higher your home gets valued, the market credit goes away and your taxes go up. So sometimes when you're at that threshold,
you get a real good double whammy with it. And there are all the taxes within the district. So it's not as bad an increase as we thought. In fact, overall, I don't know. That was uh that's the proposed. So I think it actually will end up being
less. >> Yep. Yep. Any questions for anyone? Yeah, we're here to answer if anybody has questions. I know Brian came and he had said he had spoken to somebody that was asking about the the county tax
increase and they said it was 6% and I actually he told me who the person was and I looked up their bill and I'm like no no no it's not 6% but then when I read the bottom of the bill it was a 6% levy increase in their thing but again they have market value too they're growing they're adding businesses
they're adding people um so a 6% levy increase does not always generate to a 6% tax Miles and Kim, you understand why I asked Kim to do the presentation. She does a nice job. >> Miles did all the graphics. So, >> appreciate that. >> It was nice to see those graphics and
and the way you did it, broke it down. Thank you. >> Um, if there are no other comments with the public hearing, I will close the public hearing and we will proceed to unfinished business. uh which would be 7A uh fee schedule. Brian.
>> Yep. We just uh put it back on there. Um again, just for discussion at this point. Whoops. That's not it. Um just just for discussion. We don't want to leave it on there. Again, we put on a couple of meetings earlier this year just to uh to give council a chance to
look through it um and get back to us with any any questions, any comments, anything you want us to specifically take a look at. Uh I did get a couple of questions on the planning and zoning fees or the the building permit fees, which are are pretty much set by the the
UBC um um which is an older building code. So, we're we're actually lower than what the the international building code would say uh or the new the newer uh building code. But but yeah, all those fees in there are kind of uh kind of set. They're standard. They carry
through to all the municipalities that are enforcing the building code. Um we are looking at, let's see here, as a staff, we're looking at um what the fee might be for manual reading of water
meters. Um, we really need to replace all of the water meters. Um, and some people don't want the readers because it works over the Wi-Fi. The reality of it is they they read for less than a second a day, the whole day. It's just, you
know, there there's more RV R UV UV RF. There's more RF um in a microwave or a cell phone or anything like that um than there is in these these water meters. But some people don't like that. Um, we really
want to deter anybody from opting trying to opt out of the that part of it. I think we need to put in all new water meters because they don't do any RF. But anyway, we're going to have to have a fee for the manual reads for those that just are not going to let us put the
reader in the house. Um, so we're still kicking that around what that might be. Um, talked about possible um, dug at large adjustment, maybe licensing adjustments. We're not quite sure on that. The code committee is working through that. That might be a next year thing.
Um, we need to update the wastewater water fees up here uh with the 4% increase that we're proposing. Um, and we're looking at um adding a
uh a charge for paper billing. And we spend a ton of money on postage, a ton of money on time. Um, as as Mayor Hamill has stated a few times, um, most utilities are charging uh to do paper billing now. So, we're going to we're going to entertain that and we'll we'll
get something on the preliminary for for you guys to to kick around and think about. Um, and that uh with all the adjustments that that we're proposing and whatever else you want on there will be on the meeting, the December 18th meeting. And at that time, I'll ask you
to set a public hearing for January 8th. Um and then after that um you'll be approving or adjusting or or we'll adjust along the way as needed. But uh everything will be approved um at the first meeting in January per ordinance.
We have to do it then. >> Thank you. >> That was a lot of words. I didn't mean to talk that much, but >> any questions for Brian? >> No. Then we'll proceed to number eight, new business. Uh first one is resolution 202536
resolution rejecting all pool bids. >> Yep. This is something we have to do this by law um formally reject this the pool bids. We've had a lot of discussion about those bids and how high they they are. We're already moving down the road of uh of the rebidding. Uh Burbach has
uh sent letters out or is going to send letters out. I saw the draft already uh to the the current biders notifying them uh that all bids are going to be rejected tonight and that uh the rebidding process will start in early January be a January February bidding
process uh will open um early March and hopefully award at that time and uh construction start in April. I'll make a motion uh to approve resolution 2025-36. >> Second.
>> This is roll call. So, uh Joan >> I >> Kevin >> I >> Brett and I I passes 40. Uh 8B, resolution 202536 acknowledging the award of grant funds from the greater Minnesota small cities Housing
and Aid Grant Program. Ryan, >> yes. This was a grant that Kurt wrote um uh on behalf of uh Habitat for Humanity. Uh Bob Holly, who is the executive director, um asked if we would be willing to work with them uh to try and
get a grant. Um and what this will do is $85,000. that'll help them to buy a lot in town um and and do a Habitat for Humanity house. Um Kim and I were trying to think about how long ago the last one was, 25 years, something like that. So,
we're excited for the opportunity. Uh and excited to get the grant. Um and yeah, you got the explanation on there. We're just looking for uh we had it's a formality. Um the council just needs to recognize uh the grant
I'll make a motion to approve resolution 2025-37. >> Second. >> Uh, this is a roll call again. Joan, >> hi. >> Kevin, >> I >> Fred >> and I I passes 40. Uh, and 8C, the Zimroto Police
Department LEALS contract 2026 to 2028. Brian, >> yes. And uh it was a pleasure working with uh Tony and LS. Again, um it's always uh much easier to do negotiations when we come in with u
the goal in mind, the same goal, which is to serve the city of Zimroa and be financially responsible. Um you know, they understand where we need to be and we understand where they need to be and we come in pretty close. It's not like the old days where you one comes in way high and one comes in way low. We're we're pretty close when we start. So,
uh, it was another good negotiation and we had a few a few changes as as I noted on on my memo. Uh, you know, a good change. We consolidated boot allowance and uniform uh provisions into one section. Um, which is good. The the officers will have an aotment of
dollars. Um, you know, and they can spend those dollars on if they need boots, if they need to replace a piece of their uniform and all of that that type of stuff. um you know following the wage study in 26 uh and then 3% in both 27 and 28
um a change that didn't necessarily come out of the ales contract negotiations but uh Christmas day will be changed from a half day to a full day now it is most people are not around anyway they will be because they're 24 hours but uh um we updated some of the overtime and
compensatory time acral provisions basically you can't have comp time and overtime on the same pay period. Um, this was citywide. We increased longevity payment from $60 to $65 per year. It's been
well forever since that was increased. Uh, so we did that. And then here's the big one for the police. Um, and I think we're probably one of not very many small agencies in the area. are some uh but we added a sbatical uh to their
contract u which they can take some some leave 84 hours of leave that does not come out of their PTO or acrruel um it's a wellness deal they're not to be out um you know working in the public safety field anywhere they're
supposed to relax check out leave their phone leave everything here and just check out um that'll be accomplished without using overtime time or part-time was the provision that that we we asked to put in there that was offered
actually. Um and so you know the approval will go through chief. Oh that's once every five years um after yeah after five years of employment then you're eligible. Um that's approved by by the chief and myself. Uh
so there'll be some jockeying around to make it work for everybody within their year. it's got to be we used within that year or two. So, uh we're very happy to be able to come to an agreement on that. Uh you know, it's it's a tough job and uh you know, I think it makes us more attractive from a recruitment standpoint
as well and retention standpoint. So, um anyway, everything's good. Bob, sorry, I didn't even give you a chance to talk. Bob was on the team, too. >> No, I just wanted to say thank you um to Brian and and Tony. It's a lot of uh lot of things to go through and back and
forth. Uh, but it came through pretty good, I think. So, thank you. Just need a uh a motion to approve that contract. >> I'll make that motion. >> I'll second it. >> Uh, all those in favor. >> I >> I
>> passes 40. Uh, and then, uh, on to reports. Brian, >> I left my reports on the copier again. Um, trying to remember what I was going to talk about. Um, I don't remember. going to somebody else. Let me go grab
him. Just make sure I didn't have anything real important. Miles, >> uh, the only thing that I really have is that you'll probably be seeing probably at the beginning of the year, we are going to be implementing a new personnel policy. Um, so keep that on top of your heads that that'll probably coming
through for our city staff members. Um the only biggest biggest change that we're making is that we're our policy is very old that we have now and we're implementing it into the League of Minnesota Cities model policy that they have so we can keep things uh updated
easier especially with the new leave laws that come in get enacted almost every year and changes that we have. So that's just something that we'll be seeing probably at the beginning of the year. Um, and yeah, and then uh animal ordinance is coming along and you'll see
that soon as well. So that's it for me. >> Thank you. >> Right. All right. I've got mine now. This um Donnie and Frank days for the pool fundraiser went very well. Good thing we had this snowstorm. Everybody stayed in town and decided to come down the BFW. Um we raised approximately
$11,500. Uh but a big thank you to the VFW. They had already voted and committed to giving us $10,000 whether or not they sold all their tickets or not, which was which which is what covers the prizes and and and the 10,000 that they gave
us. So no matter what happened with the sale of the tickets, they were going to give us 10,000. So they gave us a check that night. Um and then the silent auction was about $1,500 give or take. Uh so that's a big a big shot in the arm. A big nice fundraiser. Uh huge thanks to the VFW. They've had two very
nice fundraisers now. I think it's gosh, it's been $25,000 between the two probably. So, so that helps a bunch. Um, and then a reminder of the council, uh, we have a work session on Thursday, December 11th at 4:30 p.m. I was thinking it was 5:30, but it's 4:30. I
look back at the minutes. >> All right, that's it. >> That's it. >> Yep. >> Chief, >> nothing tonight. Jeff >> James. Nothing. Uh Joan,
>> I just had one uh member of the community uh reach out and was expressing positive uh vibes towards the pool. Just wanting us to know that they were very much wanting a pool and that they were happy that we were rebidding
and going forward. So that's it. >> Kevin, no. No, I have nothing. Meeting adjourned. >> I forgot to bring the gab for you. >> Yeah, there we go.