City of Lake City - Common Council - April 13 Workshop Meeting

THE FOLLOWING IS A SUMMARY OF THE MINUTES FROM THE COMMON COUNCIL MEETINGS. COPIES OF THE FULL TEXT ARE AVAILABLE AT CITY HALL OR CAN BE ACCESSED ON THE INTERNET AT www.ci.lake-city.mn.us.

Lake City Common Council
Workshop MEETING
APRIL 13, 2026, 5:00 p.m.
CiTY HALL
COUNCIL CHAMBERS
Members Present: Mayor Brian Quinn, Russell Boe, Amy Alkire, Faye Brown, Megan Kramer, Cindy McGrath, Robert Newsome.
Staff Present: City Administrator Rob Keehn, Finance Director Jerome Illg, City Clerk Michelle Seydel.
Mayor Quinn called the meeting to order at 5:01 p.m. with a quorum present.
Call to Order and Introductions
Review, Adopt, or Amend Agenda
Motion by McGrath, second Newsome to adopt the agenda as presented. All ayes, 7-0-0. Motion carried.
Informational Reports
Cohn Reznick - 2025 Financial Summary and Audit Andrew Forliti, Audit Principal from Cohn Reznick will discuss the City’s 2025 Financial Statement and present highlights from the audit.   The city’s audit has been posted on the city’s website: https://www.ci.lake-city.mn.us.
2027 Budget Materials
Staff has prepared a very high level 2027 budget projection based upon various assumptions that are notated. As discussed in the past, personnel costs represent a significant portion of most levied funds. They are mostly tied to contractual obligations (union contracts) and benefit changes.  Two union contracts have been settled that affect general fund operations. The last union contract (IBEW) to be settled will affect water, sewer, and electric (non-levied funds). Some broad level expenditure changes were included to supplies, repair and maintenance, and contractual. Property and workers compensation insurance were adjusted based upon LMCIT trend projections. Some broad level revenue adjustments were made based upon current trends.   Debt levies were updated based upon conservative expected repayment schedules for the North Garden Street project. The Port Authority was broadly increased overall 5%. Capital projects are currently projected at $1,085,500 according to last year’s approved capital plan (2026-2035). Staff has already identified a few projects that could easily be shuffled. Staff projects capital items to represent about $785,813 of levy, similar to what has been levied in the past for capital projects and past budget assumptions.
Once aggregated together, the 2027 tax levy projection is approximately 10.25%. Staff recognizes that this projected levy may be higher than desired. However, staff will be working over the next several months on capital plans and detailed operating budgets to hopefully decrease levy amount as more information becomes known.   Staff has illustrated past tax levies and tax capacity amounts as they relate to the city’s tax rate.  Staff has projected what the city’s 2027 tax rate may look like based upon a few samples of expected tax capacity (property valuation) changes.
Motion by Boe, second McGrath to adjourn the meeting at 5:38 p.m. All ayes, 7-0-0. Motion carried.
 
/s/ Brian Quinn, Mayor

ATTEST:
/s/ Michelle Seydel, City Clerk

Published in the Lake City Graphic
on May 21, 2026