City Council Agenda Packet 07-28-2025 SpecialAGENDA
MONTICELLO CITY COUNCIL
Monday, July 28, 2025 – 4:30 p.m.
Monticello Community Center
1. Call to Order
2. 4:30 – 5:00 p.m. MnDOT TH25 Corridor Study Update
3. 5:00 – 6:00 p.m. 2026 Budget Discussion
4. 6:00 – 6:15 p.m. Review of Pickleball Court Concept
5. Adjournment
2026
Budget Workshop #1
JULY 28, 2025
Budget Schedule
•July 28: Workshop 1
•August 18: Workshop 2*
•August 25: Workshop 3
•Sep. 8: Workshop 4
•Sep. 22: Preliminary Levy
•Oct-Nov: Workshop(s)
•Dec. 8: Final Levy, Fee Schedule & Budget
*Special Meeting
Agenda
•Provide background: budgeting principles, funding options, & funds
•Outline current context and preliminary market values
•Summarize staff priorities for 2026
•Discuss operating requests from staff (“major non-capital”)
o Personnel
o Supplies
o Services/Repairs & Maintenance
•Gain direction from Council
Guiding Principles
Revenues:
•Estimate conservatively
•When economical, charge
users directly rather than tax
•Maintain a diversified and
stable tax base
Expenditures:
•Estimate liberally
•Limit ongoing spending to
ongoing revenues
•Spend restricted resources
before unrestricted
resources
Background: Funding Options
•Grants
•Contributions
•Charges for services
•Franchise fees
•Bond proceeds
•Use of reserves
•Local sales tax
•Property tax levy
Governmental: Supported primarily by a tax levy
or other dedicated source
•General*
•Community Center
•Debt Service
•Capital Projects* (including Park & Pathways)
•Cemetery
•Street Lighting Improvement
•Park Dedication
•BCOL Sales Tax
•Street Improvements (Gas franchise tax?)
Background: Monticello’s Funds
Tax Levy History & Potential Future Scenario
22%
28%26%
20%17%15%16%16%12%10%9%8%6%6%2%2%
17%16%15%15%14%
14%14%14%
7%
3%5%
10%12%14%17%18%23%
9%11%13%15%15%
15%14%14%
67%65%65%66%67%66%64%62%61%61%61%60%61%62%65%67%69%
4%4%4%4%4%4%4%4%4%3%3%3%3%3%3%3%3%
0%
10%
20%
30%
40%
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60%
70%
80%
90%
100%
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Monticello Tax Levy History & Projection By Allocation
Existing Debt New Debt Capital General Fund MCC Fund
Enterprise: Supported primarily by charges and
fees to users
•Water
•Sewer
•Storm
•Fiber
•Liquor
•DMV
Internal Service: Supported by charges to other funds
•Central Equipment
•Facilities Maintenance
•Information Technology
•Benefit Accrual
Background: Monticello’s Funds
Context
What We Know:
•Property Valuations
•Xcel’s Preliminary Valuation
•City-Initiated Projects
•1% Levy Increase = $140k
What We Don’t Know:
•Xcel’s Final Valuation
•Development Activity
•EDA’s HRA levy
Service Levels
•Direct budget & workload impacts
•Typically, also very visible
•Examples:
•Hours of operation
•Frequency of tasks
•Quality of tasks
•Community beautification
•Level of enforcement
Taxable Market Values
Xcel’s Valuation:
•Received: 6/23/25
•Deadline to Appeal: 7/23/25
•Conference Scheduled For: 8/6/25
•Latest Final Valuation Date: 9/5/25
No Decertified TIF Districts in Payable 2026
Property Class Change New Existing
Overall +10.1%+2.64%+7.49%
Residential +4.80%+1.86%+2.94%
Commercial & Industrial +4.86%+1.81%+3.05%
Apartments +22.45% ($46M)+19.28%+3.17%
Public Utility*+21.9% ($149M)--+21.9%
Department Priorities
Training for new & existing staff
Providing excellent customer service
Understanding new Statutes
Automating processes
Complete priority projects
Education campaigns to the public
Offer new products to customers
Expand functionality of current software
Implement new franchise fee
Operations
“Never doubt that a small group of thoughtful,
committed citizens can change the world;
indeed, it's the only thing that ever has.”
- Margaret Mead
General Items
•Elections
•Continuing Costs
•Data Center Impacts
•Software Utilization
•Training for Staff (both new & existing)
•Differentiate Ballfields and Shade Tree departments from Parks
Operations
Personnel
•Add FT DMV clerk - $42,000
•COLA – $?
•Compensation Study – $?
•Health & Dental Insurance – $?
•MN Paid Leave - $30,000
•Allocations of staff time impact funds differently
•Prospective Internship Program
Supplies
•Streets - $30,000 allows for more in-house asphalt overlays
•Ice/Snow – $25,000 salt/sand based on County ordering & current inventory
•Arts - $20,000 for downtown banner project
•Shade Tree - $15,000 EAB tree injection chemicals
•MCC – $12,000 for staff to install Romp & Stomp door to hallway
•Water – $50,000 reduction (reaching end of meter reader change outs)
•FM Fund - $55,000 for in-house repairs to city facilities
•IT Fund - $29,000 for new server
Professional Services/Repairs & Maintenance
•Strategic Planning Facilitator - $10,000
•Finance - $9,300 for single audits
•Legal/P&Z - $10,000 for consulting (general, data centers and cannabis updates)
•HR - $7,000 for contracted training management
•Streets - $75,000 striping/crack seal projects
•Refuse - $138,000 increased accounts & rate
•Parks - $8,000 for Pointes landscaping grant match
•Shade Tree - $20,000 for grant match
Professional Services/Repairs & Maintenance
•MCC Utilities - $30,000 based on trends
•MCC - $25,000 additional West Bridge Park programming
•Storm – $15,000 MS4 permit (may be pushed to 2027)
•Liquor - $5,000 for Riverfest fireworks
•DMV - $13,500 to upgrade HVAC controls
•FM - $45,000 contracted projects
•FM - $64,000 reduction in custodial contract (brought in-house in 2025)
•IT - $7,800 for scheduling software (MCC, DMV, Hi-Way, Parks)
•Change in allocation affects departments differently
General Fund:
Changes in Budgeted Revenues
•Property Taxes
•$? increase – Levy
•Licenses & Permits
•$100,000 increase – Building Permit assumptions
•Intergovernmental
•$240,000 reduction – Public Safety Aid
•$43,000 reduction – EAB ReLeaf Grant
•$17,000 increase – State Hwy Operating Aid
•Charges for Services
•$124,000 increase – same rate, more users, garbage tax logistics
•Other
•$175,000 increase – Solar Rebates
•Reductions from 2025
•Finance (IT Fund) – $30,000 Laserfiche AP Workflow
project
•HR – $20,000 compensation study
•P&Z – $50,000 park dedication study
•City Hall – $25,000 layout redesign
•Streets - $25,000 R&M
•Library – $11,000 fire system upgrades in 2026 capital
project
•Parks - $25,000 downtown planters
•Parks – mowing decrease ($2k General; $5k Cemetery)
General Fund:
Changes in Budgeted Expenditures
•Wages: $267,000 increase*
•$180,000 COLA/Wage Study
•$26,000 insurance increase
•$25,000 step increases
•$20,000 election judges
•$15,000 MN Paid Leave
•Remainder – 2025 mid-year changes
General Fund:
Changes in Budgeted Expenditures
*Depending on COLA & impacts from compensation study
•New Requests – General Government
•Admin - $75,000 Solar (offset with Xcel credits)
•Admin/P&Z - $10,000 legal consulting
•Planning & Zoning - $25,000 (escrow activity)
•Clerk – $11,000 elections
•HR - $7,000 SafeAssure testing service
General Fund:
Changes in Budgeted Expenditures
•New Requests – Public Safety
•Law enforcement – $110,000 (4.5%) contract rate increase
•Fire Relief - $20,000 (offset by revenue)
•Emergency management – $8,000 AED cabinets on Liquor
Store & Fire Station exteriors
•Animal Control – $4,500 contract increase
General Fund:
Changes in Budgeted Expenditures
•New Requests – Public Works & Refuse
•Streets – $30,000 Asphalt for in-house overlays
•Streets – $75,000 Striping/Crack Seal project
•Streets – $66,000 Central Equipment Fund “lease” payments
•Ice/Snow – $25,000 Salt/Sand
•Refuse – $138,000 Contract cost
•Rate increase 6/1/26, more customers, & garbage tax
logistics
General Fund:
Changes in Budgeted Expenditures
•New Requests – Parks & Recreation
•Parks/Ballfields allocation change
•Parks - $8,000 service for Pointes grant matching
•Arts - $20,000 for banner project
•Shade Tree – $15,000 supplies for Tree injections chemicals
•Shade Tree - $20,000 professional services for EAB response
•End of DNR & ReLeaf grants
General Fund:
Changes in Budgeted Expenditures
Community Center Fund:
Changes in Budgeted Revenues
•Property Taxes
•$? increase – Levy
•Charges for Services
•$170,000 increase
•$120,000 membership/day passes
•$35,000 rentals
•$15,000 concessions
•Other
•Maintain $28,900 assumption based on trends and YTD
•Transfers In
•Maintain $100,000 from Deputy Registrar Fund (only as
needed)
•Wages: $120,000 increase*
•MN Paid Leave: $4,500
•FT/PT Admin: $31,500
•$26,000 COLA/Wage Study
•$3,500 insurance increase
•$2,000 step increases
•Part-time: $84,000
•Aquatics: $27,000
•Guest Services: $12,000
•Maintenance: $3,000
•Programming: $42,000
Community Center Fund:
Changes in Budgeted Expenditures
*Depending on COLA & impacts from compensation study
Community Center Fund:
Changes in Budgeted Expenditures
•Admin - $15,000 IT allocation
•Maintenance - $30,000 utilities
•Maintenance - $12,000 Romp & Stomp door
•Programming - $20,000 Community events
Council Direction Needed
•Should the City continue lobbying for State funding?
•What level of direct support should go to the Senior Center?
•What should be done for Fenning Roundabout landscaping?
•Should the MCC hold community events even if there are no sponsors?
•Should the Liquor Store fund project annually or build up for specific projects?
*Note For 2025: There will be unbudgeted cost for special election(s)
“A budget is more than just a series of
numbers on a page; it is an embodiment
of our values.”
- Barack Obama
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Scale in Feet
0’80’40’20’Monticello, MN
June 18, 2025 | WSB Project number: 028201-000
Bertram Chain of Lakes Pickleball Courts | Final Concept
SHADE CANOPY
BLACK VINYL COATED
CHAINLINK FENCE WITH WINDSCREENS
ADA COMPLIANT COMPACTED
GRAVEL TRAIL
4’ PERIMETER FENCE W/ ENTRY GATE ON EACH SIDE OF PLAZA (2) AND ENTRY GATES TO COURTS (4)
27’X146’ CONCRETE PLAZA W/ (2) 15’X30’ SHADE CANOPIES
8 PICKLEBALL COURTS WITH 4’ TALL DIVIDER FENCING
ADA COMPLIANT COMPACTED GRAVEL TRAIL
2-STALL ACCESSIBLE PAVED PARKING
FUTURE
MULTI-PURPOSE
FIELDS
FUTURE
PARKING
EXISTING
IRRIGATION POND
EXISTING GRAVEL
PARKING LOT
EXISTING SOCCER
FIELDS
EXISTING ACCESS DRIVE
FUTURE CONCESSION BUILDING FUTURE CONNECTION TO PARKING/CONCESSION AREA
GRAVEL PARKING AREA
10’ TALL PERIMETER FENCE WITH WINDSCREENS
PEDESTRIAN RAMP