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06.a2 Draft minutes 08-06-2025 MeetingAugust 6, 2025 A work session meeting of the Scandia City Council was held on the above date. The meeting was conducted in the Council Chambers at the Scandia Community Center and over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute to discussions. Mayor Steve Kronmiller called the meeting to order at 6:30 p.m. The following were present: Council members Kirsten Libby, Jerry Cusick, Mike Lubke, Jim Gribble, and Mayor Steve Kronmiller. Staff present: City Administrator Kyle Morell, Public Works Director Charles Fischer, and City Treasurer Veronica Korby. APPROVAL OF THE AGENDA Cusick, second by Lubke, moved to approve the agenda as amended. Motion carried 5-0. 2026 DRAFT PRELIMINARY BUDGET Morell presented the draft 2026 preliminary budget to the Council for review and comment. Council was encouraged to meet with Staff if they have specific questions about individual line items. The overall projected levy increase is 6.59%, or $197,249 more than the 2025. This increase is due in large part to the additional $111,270 in debt service levy the City has added in 2025 and a $62,480 increase in the City’s general fund operating levy. Some of the general fund increases are due precautionary 10% increases to insurance and contractual services. When actual numbers are available, those line items will be updated. Changes were made to the CIP funds. The 406 Equipment Replacement Fund has been broken out into three different funds: 406 – Public Works, 410 – Fire Department, 412 – Public Safety Building. This separation will allow the City to more easily track expenses within each department. The CIP levy increased $21,000 over 2025. Councilmember Libby asked for a budget to be presented that kept the overall increase within the annual inflation number, which is currently 3.229%. Staff noted this would require reducing the overall budget by $92,400, but will present a budget to meet this request at the September 3 Work Session. She noted that to accomplish this reduction the City should look for new revenue sources and not simply cut expenses. Staff will present an updated budget at the September 3 Work Session. The preliminary levy will be voted on at the September 16 Regular Meeting. ADJOURNMENT Libby, second by Lubke, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 7:22 p.m. Respectfully submitted, Veronica Korby City Treasurer