City Council Work Session

CITY COUNCIL WORK SESSION MINUTES Tuesday, September 16, 2025 at 6:30 PM Baxter City Hall, 13190 Memorywood Drive, Baxter, MN “A Growing Community” CALL TO ORDER Vice Mayor Cross called the meeting to order at 6:30 p.m. ROLL CALL Vice Mayor Mark Cross and Council Members Connie Lyscio and Patrick Sundberg were present. Mayor Darrel Olson and Council Member Zach Tabatt were absent. City Administrator Brad Chapulis, Assistant City Administrator Kelly Steele, Finance Director Jeremy Vacinek, Community Development Director Josh Doty, Assistant City Engineer Trevor Thompson, GIS/IT Director Todd DeBoer, Assistant Finance Director Brenda Brooks, and Police Chief Matt Maier were present. BUSINESS ITEMS 1. 2026 Governmental Funds Budget Discussion Finance Director Vacinek explained the proposed 2026 Governmental Funds Budget and preliminary property tax levy for 2026 has been updated to reflect administration refinement and council direction to lower the proposed levy. The proposed reductions result in a net reduction of $166,700 to the levy. The proposed adjustments result in an overall levy increase of $574,800 or 6.2% over 2025. Staff is waiting for property tax capacity information from Crow Wing County. Once preliminary tax capacity information is available, the estimated impact for 2026 will be provided. The council previously discussed using $285,000 of general fund balance from the 2024 budget surplus towards the 2026 budget. The surplus can be utilized towards one-time capital equipment funding prorated for the police, streets, and parks departments’ contributions. Reducing the 2026 proposed levy by the additional $285,000 results in an overall proposed levy of $9,590,400, a $289,000 increase or 3.1% over 2025. Considering the property tax levy can be reduced but not increased after the proposed levy is certified, the council may wish to consider reserving a portion of the $285,000 identified 2024 budget surplus for other future capital equipment and facility funding needs as we continue to work through the 2026 budget. The preliminary levy must be certified to Crow Wing County by the end of September. The council consensus is to set the preliminary levy at a 5% increase over 2025. ADJOURN MOTION by Council Member Lyscio, seconded by Council Member Sundberg to adjourn at 6:53 p.m. Motion carried unanimously. 9/16/2025 City Council Work Session Minutes Page 2 Approved by: Respectfully submitted, _____________________________ Darrel Olson Kelly Steele Mayor Assistant City Administrator