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<br /> <br />City Council Minutes <br />June 16, 2025 <br />--------- <br />Page 11 of 12 <br />regarding J-turns, and explained that Councilmember Calva was not alone with his opinion of J-turns, <br />but that it is MnDOT's approach they are taking throughout the state for a solution, but that the J-turn <br />solution doesn't carry a lot of local support. <br /> <br />Councilmember Beyer asked if there was still an opportunity to get some funding somewhere. Mr. <br />Femrite answered, saying he won't say no, but they will look and evaluate anything that comes out that <br />they could apply for, but the likelihood is slim. <br /> <br />Mr. Barker thanked everyone for the conversation and consideration. <br /> <br />The Council directed staff to bring an agreement back to the next Council meeting. <br /> <br /> 10.2 2026 Budget Planning <br /> The staff report was presented. <br /> <br />Councilmember Wagner asked if he felt the city as a whole was running as tightly as it could. She <br />referred to the bullet items and referenced the 3-4% cost of living increase, and explained that if they <br />wanted to do that, they need to look at tightening up other areas. <br /> <br />Mr. Portner explained that there are two things you saw tonight and referenced the audit report for <br />2024. He explained the expenditures were within $61,706 of what was budgeted the year before, which <br />he hasn't seen one that tight before. He explained that it was with the vacancies they had in 2024. <br />Councilmember Wagner asked without those vacancies, you wouldn't have that. Mr. Portner explained <br />yes and no, with some of the vacancies, they used those funds for other things. He further explained <br />that what they heard from the auditor was that they are using a lot of intergovernmental transfers to <br />keep the tax rate down, and they are tapped out as a whole with the transfers. Mr. Portner continued, <br />stating he would like to keep the cost of living number in a really good spot, but does know there are <br />areas to adjust. He would like the Council to consider going back to the company that did the <br />compensation plan to do a compensation study update. <br /> <br />Mayor Dietz discussed having the reserves at 43%, and explained that the number could go down to <br />42% or 41% if they needed to use some of that money. He continued saying that it would not be fair to <br />go up 4% for union staff and not for non-union staff. <br /> <br />Councilmember Wagner asked about the unassigned fund balance and said the city policy stated that it <br />should maintain between 40-45%. She asked if that was a city policy or a federal policy. Mr. Portner <br />stated that it is a city policy. <br /> <br />Mayor Dietz asked if they could do a survey of other cities to see what they have as a reserve. Mr. <br />Portner stated, Yes, that it would be very easy to do since everyone has an audit. <br /> <br />Councilmember Wagner asked what is good practice for that number. Mr. Portner stated that when <br />bonding, you want to be at a 45% rate. <br /> <br />Mayor Dietz asked if they would have to bond for the fire station in the next couple of years. Mr. <br />Portner said Yes. <br /> <br />Mr. Portner explained that the city has seen growth in property valuations, and they will see more with