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City Council Minutes <br />July 28, 2025 <br />Page 2 of 3 <br />Staff expressed its appreciation to Elk River Municipal Utilities for the excellent customer service they <br />provide to the community with this city program. <br />Liquor <br />Mr. Stremcha reviewed the organizational structure for the liquor and cannabis operations. <br />Mayor Dietz expressed concern about adding a staff person to the liquor store budget. Mr. Portner <br />stated it would help free up the liquor store managers to be more engaged with marketing efforts. <br />Mayor Dietz suggested not doing a liquor store transfer in 2026 due to the store construction projects. <br />He also suggested dropping the General Fund Reserves from 45% to 40-41 % to offset the liquor <br />transfer loss. Mr. Portner recommended waiting until after bonding for the city construction projects, <br />which could be a year or two down the road. <br />Cannabound <br />The Council had some questions on how the implementation process of opening a new cannabis store <br />will work, such as paying vendors, purchasing a large amount of products, and banking. Staff indicated <br />some of these components are still being worked out. <br />Senior Center <br />There was a discussion about why guests under the age of 55 are not allowed to participate at the <br />senior activity center. Mr. Shelby stated that the programming is designed for the senior members. He <br />stated they don't want to be put in a position to be taken advantage of, noting a few past examples. He <br />suggested they could schedule open houses a few times a year. Councilmember Wagner stated she <br />didn't see why a member couldn't bring a grandchild for a day. Councilmember Calva agreed, stating <br />seniors are proud of their kids and grandchildren and want to show them off. There was a discussion <br />about how a guest pass program could work. <br />There was discussion about conflicts between senior programming needing space and room rental <br />opportunities, which bring in revenue, at the community center. Funds for room rental are proposed in <br />the senior center budget to guarantee space for senior programming. Mayor Dietz questioned if this <br />would raise membership fees, and Mr. Shelby stated yes. Councilmember Grupa stated this should be <br />stabilized, so the seniors don't feel they are being pushed around and can have their own space and a <br />set routine. There was also discussion about whether the true costs of the senior center are being <br />captured correctly in the budget. <br />Recreation <br />Mayor Dietz questioned the elimination of the brochure that was mailed to residents and the drop in <br />registrations. He asked how the city could grow its programming. Mr. Shelby stated one of the biggest <br />challenges is space, noting that more gym and field space is needed. Mr. Portner also discussed how <br />there is less interest in some of the traditional programs. <br />Finance <br />There was discussion on restructuring some positions in finance and administration. <br />Fire <br />Mayor Dietz stated he was unsure he could support the new position request for a community risk <br />reduction specialist in the fire department. Mr. Portner stated this position would oversee the rental <br />Page 13 of 105 <br />