City Council Special Meeting

CITY COUNCIL SPECIAL MEETING MINUTES Monday, December 01, 2025 at 6:00 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Mayor Olson called the meeting to order at 6:00 p.m. ROLL CALL Mayor Darrel Olson and Council Members Zach Tabatt and Patrick Sundberg were present. Council Members Connie Lyscio and Mark Cross were absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Finance Director Jeremy Vacinek, Assistant Finance Director Brenda Brooks were present. PRESENTATIONS 1. 2026 Budget and Property Tax Levy Public Informational Meeting Finance Director Jeremy Vacinek presented the 2026 budget and property tax levy public informational meeting. Finance Director Vacinek summarized the market value and tax capacity; proposed property tax levy; 2026 general, special revenue, capital project, debt service, and enterprise funds budget, and the next steps to adopt the final levy and 2026 budget. The revised proposed levy change from 2025 is 4.07% or an increase of $378,100. This is down from the 5% levy increase set in September. The 2026 proposed levy of $9,678,700 is an increase of $2,422,200 or 33.38% over the last five years. During the same period, inflation has increased 24.79% overall, 9.43% within the past three years alone. With no change in property valuation, properties will see a .04% increase in the city’s portion of property taxes from the city’s 2026 levy. The general fund budget is a balanced budget of $10,263,400. Finance Director Vacinek also summarized highlights, including rate adjustments, for the various enterprise fund budgets. OPEN PUBLIC HEARING Mayor Olson opened the public hearing at 6:22 p.m. No public comments were received. CLOSE PUBLIC HEARING Mayor Olson closed the public hearing at 6:23 p.m. NEXT STEPS 12/1/2025 City Council Special Meeting Minutes Page 2 The council will review the proposed final levy and budget on December 2, 2026. The final adoption of the levy and budget is scheduled for December 16, 2025. ADJOURN MOTION by Council Member Sundberg, seconded by Council Member Tabatt to adjourn at 6:23 p.m. Motion carried unanimously. Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator