Financial consultant Abdo Financial Solutions presented the preliminary budget to council members, outlining projected revenues and expenditures for 2027. The presentation covered staffing cost-of-living adjustments, rising insurance costs, and departmental spending needs. A significant portion of the discussion focused on the Capital Improvement Program, which details major investments including road improvements, public works vehicles, and a new $1.2 million pumper truck for the fire department.

Mayor Rolf raised concerns about the proposed tax increase, questioning why the city would raise taxes when it has a $300,000 budget surplus. "How can you sit there and look at the public and say, 'We have $300,000 that we could do something with, but we're going to save it, just increase the taxes,'" the mayor said. "I think it's something to think about."

Council members debated the merits of the levy increase, with some advocating for proactive long-term financial planning. One council member argued for setting aside funds incrementally—$5,000 to $7,000 annually over 10 years—to avoid sudden, large tax jumps in the future. A staff member justified the new pumper truck purchase by noting the current vehicle is a 2001 model, now 25 years old, and was originally designed for a 10-year lifespan. Modern trucks are built with stainless steel to last 20 years, he explained.

The council is awaiting crucial county tax data from Anoka County, expected in August, which will be needed to finalize the budget. This is the first of multiple work sessions planned to review the budget before final approval. The city will follow a structured budget calendar with specific milestones throughout the approval process.