1 ## City Council ## Work Session Monday, August 17, 2026, 5:30 PM ## 106 Center Street Members of the public may attend the work session either in person or by joining via Zoom either online or by telephone at: https://us02web.zoom.us/j/86346794494 Meeting ID: 863 4679 4494 --- One tap mobile ## +13092053325,,86346794494# US +13126266799,,86346794494# US (Chicago) ## AGENDA ## 1. Call to Order/Roll Call ## 2. Agenda Approval ## 3. New Business ## a) 2027 Preliminary Budget Discussion 4. Adjournment Page 1 of 16 ## Preliminary 2027 Budget Overview This memorandum provides the City Council with its first review of the City of Excelsior’s preliminary 2027 budget. The purpose of this work session is to review the major factors affecting the budget and tax levy, discuss the potential impact on taxpayers, and provide staff direction as the budget is refined. During 2026, the City made significant investments in infrastructure and purchased a permanent location for City Hall. The City also completed a comprehensive compensation study to evaluate employee wages relative to the market. The preliminary 2027 budget continues these investments and includes wage adjustments intended to bring staff compensation in line with the study. ## General Fund Budget Key factors impacting the 2027 General Fund Budget include: ## Revenue Considerations  Fiscal Disparities: Revenue is currently estimated to decrease in 2027.  Interest Earnings: Interest earnings are expected to decrease because the City will hold fewer bond proceeds available for investment during 2027.  Building and Development Fees: Several development-related revenues are trending below prior years, including building; mechanical and plumbing permits; zoning and subdivision fees; conditional use permits; application processing fees; and plan check fees.  Special Events Fees. Revenue has been reduced to reflect current activity, including the discontinuation of the Klondike Dog Derby. ## Expenditure Considerations  Employee Compensation: Wage adjustments are included to bring staff compensation in line with the compensation study completed in 2026.  Health Insurance: A 15% increase in health insurance costs has been included as a preliminary estimate. Final renewal information has not yet been received from the City’s insurance agent.  Insurance: Workers’ compensation and property and casualty insurance costs are estimated to increase by 5%. ## Item 3—2027 Preliminary Budget ## Date: ## Jenny Palmer, Finance Director ## City Council ## MEMORANDUM ## Re: ## To: August 17, 2026 ## From: Page 2 of 16  Seasonal Employees: Funding for seasonal employee wages has been increased to bring the City’s seasonal pay rates more in line with surrounding communities.  Comprehensive Plan: Includes $17,500 for Comprehensive Plan-related costs.  Elections: Includes the cost for a special election depending on the results of the Governor’s race.  Debt Service Levy: The preliminary budget incl…