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<br />Meeting of the City Council <br />Held at the Elk River City Hall <br />Monday, September 15, 2025 <br /> <br /> <br />Members Present: Mayor John Dietz, Councilmembers Cory Grupa, J. Brian Calva, Mike Beyer, <br />Jennifer Wagner <br /> <br />Members Absent: None <br /> <br />Staff Present: City Administrator Cal Portner, Economic Development Director Brent O'Neil, <br />Business Services Director/Assistant City Administrator Joe Stremcha, Finance <br />Manager Lori Stich, Fire Chief Mark Dickinson, Assistant Fire Chief Joe Libor, Jr., <br />Police Chief David Kuhnly, Police Captain Darren McKernan, Police Captain Joe <br />Gacke, Public Works Director/Chief Engineer Justin Femrite, Human Resources <br />Manager Lauren Wipper, Community Development Director Zack Carlton, and <br />City Clerk Tina Allard <br /> <br /> <br /> <br /> <br />1. CALL MEETING TO ORDER <br /> <br /> <br /> 1.1 City Council Special Budget Meeting Notice <br /> <br /> <br />2. 2026 BUDGET <br /> <br /> <br /> 2.1 2026 Budget Discussion <br /> Mr. Portner explained the new budgeting software, along with net tax capacity and how property tax <br />appraisals, new construction, and property improvements can affect a property owner's taxes. <br /> <br />Councilmember Wagner asked if the fleet management software could be streamlined. Mr. Portner <br />explained that each vehicle brand has its own software. He further noted they are evaluating cost <br />savings in various areas of fleet maintenance, along with limiting the makes of vehicles when possible. <br /> <br />Mayor Dietz asked how much additional revenue the city would collect from the $2 million in net tax <br />capacity. Mr. Portner stated it would be $2 million times the tax rate. Mayor Dietz asked if this would <br />decrease the levy. Mr. Portner stated it does not change the levy, but changes who pays for it. He <br />outlined this with the tax impact handout, noting that if the tax rate stays the same, the only people <br />who will see changes are those who added or lost value to their home. <br /> <br />Mayor Dietz outlined his ideas to reduce the budget: <br /> He asked the Elk River Municipal Utilities (ERMU) Commission about increasing the Payment in <br />Lieu of Taxes (PILOT), noting they currently pay the city 4%. The ERMU Commission was not in <br /> <br />