[Music] to you, the resident, in the form of city meetings, special programming, and local information you can't find anywhere else. >> And thanks to you, local channel, I am able to stay informed in what's happening in my city. And to get >> Come on in. >> Don't be afraid. >> The wall's big enough back there. You can all fit. It's 7 o'clock. We'll call the Savage City Council meeting to order. Roll call. >> Mayor Kelly >> here. >> Council members Alfred >> here. >> Coughlin >> here. >> Craigs >> here. Johnson. >> We'll stand for the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> We switch those up. I'll just keep going with what we have here. All right. I'm going to uh take a moment of silence. Uh two weeks ago, I wanted to take a moment of silence and I um it slipped my mind um in recognition of the victims of this shooting at Annunciation School. And I also want to just take a moment for all of the victims of political violence across this country and across the world. Thank you. Item two, public comments. The mayor and the city council believe public comments are a necessary component to elected governance. With this principle in mind, we welcome individuals to come to the podium to inform us on an issue or provide feedback or concerns about matters in Savage. Please come to the podium, provide your name and address. We ask that you limit your comments to three minutes. Is there anyone in the audience who wants to speak? Last week on Friday, I tried to send a communication to the city in regards to trying to uh propose a meeting of the minds this week. Um, and I'm going to read that email to you today because the results of that email were deplorable. Um, as I've been speaking out publicly monthly regarding these incidents out of it continued over the past 10 10 months at this at the uh Savage City Council meetings, the injustices, the retaliation, policy violation, abuses, when is it going to end in light of everything that's occurred over the recent months with the political shootings going on. This is ridiculous. the city of Savage employee that voted that violated my voting rights. The city of Savage employee that violated my civil rights on no in November when I was trying to vote. Now we've gotten to the point where we've got the city of Savage police maliciously trying to prosecute me for that. That was proven unfounded. The city attorney never never even prosecuted. Now, I've got a city of Savage Police Department swatting incident that you guys haven't addressed at all. Um, got abuse of power, abuse of authority. Uh, you guys came with guns, hands- on guns with four or five of your officers. Ridiculous. Body cam policy violations. They're missing body cam footage. Where's the transparency in the city? It's a cover up. City of Savage Police data policy violations. One of your clerks received my private emails in a business back and forth between my association and then it got a slap on the wrist. Where is the justice? Retaliation needs a stop. I've told Brad the items listed above have occurred directed at me from the city of Savage employees, city clerk, public records specialists, and now police officers, sergeants where there's too many to to even announce. After speaking with multiple attorneys, civil rights attorneys, and civil liability attorneys, and before filing multiple lawsuits against the city of Savage, I'm trying to be reasonable and proposing a meeting in the minds next week, meaning this week at the city of Savage to try to productively resolve what's occurred. This craziness needs to stop from your police force. Okay? You're threatening my life. Please let me know your availability next week uh to schedule this meeting. I look forward to hearing from you. sincerely myself which I'm remaining anonymous because of the uh threats to my life after all this. This needs to be exposed. The response by Brad Larson. We have responded to the questions on this topic and sent you emails on June 26 and July 31st stating we would be not responding any more email requests to these issues. You also have submitted complaints uh where which they were dismissed. They were dismissed with without prejudice. So, I'll have you take them to a higher court, which is going to occur in Scott County and also federal court for civil rights violations. We are not going to be meeting with you to discuss these matters. What Brad said, I'm going to I'm not going because we have children in the room. I'm not going to speak back how I reply to that email. But I think enough's been said this morning or today. I'm sorry. I'm nervous because I'm afraid I've got a bunch of fire department. Thank God the fire department here. God bless you. It's the police department. I have a concern with nothing with you personally, sir. But the city needs to stop with the retaliation and the abuses by your employees. This will be taken up in court. And by God, this is this is out of control. Stop it right now. >> Thank you. All right. Are there any additions, modifications, um, and approval to the agenda? >> Mayor, council members, staff does have an addition to the agenda. Uh, a resident came in uh earlier this morning asking that um we approve a application for exempt gambling permit. The the timeline uh slipped and they weren't able to get the information in until today. And so we're trying to get that on the agenda tonight. This is for uh home again furnishings. Uh it is item you know where the this one will go. >> N >> yeah 92 >> 92. Thank you. >> Thank you. With that uh addition um I'll entertain a motion to approve the agenda. >> Motion to approve the agenda as amended. >> Second. >> Did we say it at the same time? You did. >> Did I say it louder? Second. >> Motion by Coughlin, seconded by Craigs. All in favor say I. >> I. >> I. >> Opposed. Motion carries. >> Um, oath of office. Uh, we do have a room full of firefighters today and I'm very excited to say this is my first pinning. Um, and I'm so proud. Um, so, uh, Chief Breznahan, I turn it all over to you. >> Good evening, Mayor Kelly and council members. This evening, I get the pleasure of introducing to you our newest assistant chief, Chad Martin. I'll have Chad come join me. Chad's role is he oversees day-to-day operations and then the professional development of all of our firefighters. Following the introduction, we'll move to the oath of office where we'll ask Mayor Kelly to come down and give Chad his oath of office and then Chad's lovely wife will help with the badge pinning. I'll give you a little background on Chad Martin. So Chad Martin comes to us with 15 years of experience. He has served the communities of Rapids and the communities of Blaine, Spring Park, and Mounds View. Um in this 15 years, Chad has held many different ranks within the fire service, which has really rounded out his experience that makes him a great fit in Savage, especially where we're at in our progression. Um, in addition to that, he's got a lot of experience with different operating like staff operating models, whether it's a paid on call department, a combination, and career service, which adds to his experience. In addition to his experience, he still has the path he's went down the journey of higher education. Chad currently has two different college degrees. The least, the last one was a bachelor in fire um administration. With that, over this past year, Chad has accomplished all the expectations that we require of a firstear fire chief. He has absolutely leveraged his experience and his knowledge, especially bringing new programs and working with our staff. One of Chad's biggest strengths is his ability to recognize the strengths in our firefighters, each individually. In addition to successfully completing many programs, one we'd really like to touch on that is the most recent um creation of the full-time fire academy where our three last full-timers went through. It's a four-week long process. It's all hands- on deck. Our captains, our firefighters are all taking a role in the next three firefighters coming on. This program was a complete success for a couple reasons. one with his identification of the strengths of our firefighters. It's both bought in or buy in and an investment into those new firefighters and those new firefighters are better prepared to serve our community sooner. Um, with that strength and him leveraging that strength, Chad has not only met, he has exceeded many things within this first year and Chad has a very bright future with the Savage Fire Department. This is Chad Martin. K, when you're ready for you'll just step up to the microphone and then Yep. >> You get this one. >> I get this one. Got it. >> Go over there. >> I can do that. >> You're the boss. You're right. >> Just told me to set this mic at my >> Perfect. >> Are you ready? >> It's almost the same for me. So, >> okay. Repeat after me. >> Okay. I, Chad Martin, >> I, Chad Martin, >> do solemnly swear >> do solemnly swear >> to do my duty >> to do my duty >> as an officer >> as an officer >> for the city of Savage >> for the city of Savage >> to the best of my ability >> to the best of my ability >> to serve my commanding officers >> to serve my commanding officers >> and subordinance >> and subordinance >> with respect and dignity >> with respect and dignity >> I will serve the citizens of the city of Savage >> I will serve the citizens of the city of Savage >> with compassion with compassion, >> dedication, >> dedication, >> honor, >> honor, >> and integrity. >> and integrity. >> I will in all respects >> I will in all respects >> observe the provisions of the city charter >> observe the provisions of the city charter >> and ordinances of the city of Savage >> and ordinances of the city of Savage >> that I will faithfully discharge >> that I will faithfully discharge >> the duties of the office >> the duties of my office >> to the best of my judgment and abilities >> to the best of my judgment and abilities. >> So help me God. So help me God. >> Good job. >> Okay. >> I'll take your mic. >> Unless you're proposing again. >> You guys can come on. [Applause] [Laughter] [Music] [Laughter] Yeah, >> the picture with all four is much better. [Applause] Council Wood, please. We'd like to get a photo. >> We'll have Chad step to the center of the room. >> We're a little more balanced. Thank you for your time this evening. >> Hey Brett, >> do you want this somewhere? >> You [Music] What you can't see at home is the um a dozen or so firefighters who were here um in support of Chad uh being pinned tonight. And we have that with our police department. We have that with our fire department. And um what it does is it speaks volumes to um the support that they give each other and the support that's within our departments. And um it's unfortunate that people at home can't see uh how cool that is because it's really just beautiful to see um that we get to see it, right? It's just beautiful to see that support for each other. So with that, we will keep going. Sorry, my computer fell asleep. All right. Proclamations, there are none this evening. Presentations, there also are none this evening. Seven minutes. Approve the minutes of the regular city council meeting from September 2, 2025. Any additions or corrections? >> I'll make a motion to approve the minutes from the September 20 September 2nd, 2025 city council meeting. >> I'll second. >> Motion by Craigs, seconded by Bergstrom. All in favor say I. >> I. >> I. >> Opposed. Motion carries. Uh B. Approve the minutes of the city council work session from uh September 8th, 2025. >> Motion to approve the minutes of the city council work session from September 8th, 2025. >> Second. Motion by Alford. I am so sorry. Second. Great. >> I will probably still answer. All in favor say I. >> I. >> I. Motion carries. Public hearings, there are none this evening. The consent agenda. These are routine items of business that are collectively presented for approval through a single motion. A council member may request that an item be pulled from the consent agenda for separate discussion and action under personnel. One, adopt a resolution authorizing personnel actions for the city of Savage. Two, excuse me, engineering utilities. One, adopt a resolution approving first amendment to temporary site license agreement with new singular wireless for the summit tower city project 23-28. Two, adopt a resolution approving final payment and compensating change order for the community park storm water irrigation reuse system project city project 2216. Three, adopt a resolution approving the final payment and compensating change order for the West Booster Station improvement project, city project 22-35. Four, adopt a resolution approving the final payment and compensating change order for the Hampshire Avenue Park project, city project 21-54. Under planning one, adopt a resolution granting a variance from zoning code section 152.408, 408 Bluffland Overlay District Standards for the property located at 13118 Ottawa Drive, City Project 2534 under Police and Fire, adopt a resolution approving the renewal of a grant agreement with the Minnesota Department of Public Safety for the DWI traffic safety officer. two is our add-on um adopt a resolution approving an application for exempt gambling permit for home again furnishings to conduct bingo and under finance one adopt a resolution to approve claims listing and under general adopt a resolution amending the legal description of real property conveyed to bond Dakota LLC. Is there anything anybody wishes to pull? Not seeing anything, I will entertain a motion to approve. >> I will make a motion to approve the consent agenda. >> Second. Motion by Coughlin, seconded by Craigs. All in favor say I. >> I. >> Opposed? Motion carries. >> Moving on to general business. Consider adopting a resolution to approve the preliminary 2026 tax levy general fund budget and establish the truth and taxation public hearing date. Sorry, I was looking for you back there, Matt. I'm so sorry. You're sitting right where you should be. So, >> good evening, Mayor and Council. Tonight, we're going to be going through the preliminary maximum general fund budget and property tax levy. you've seen this presentation. This will be your fourth time now. Um, so I will go through this in quite a bit of detail for general public. Um, but overall, not much has changed since we have met. So, quick to go through things tonight. We're going to review the budget increase guidelines that were given to departments, the key drivers of the 2026 general fund budget, budget imper information, and fiscal impacts. We'll look at the preliminary 2026 property tax levy and how that impacts the median value home. We'll then review the next steps and answer any questions that council may have. And at after that, we will then take action. So the budget increase guidelines for the 2026 budget. Administrator Larson and I instructed staff to keep their budgets at 2025 levels, meaning that there was no implicit automatic increase to expenditures. any increase to the budgets needed to be categorized into three categories. Priority one being those that are unavoidable in nature. So think your things like software expenditures, uh utilities, contracts that were in for multiple years that have just an annual escalator in them. Priority two are going to be those that support city council directives and strategic plan action items. So the ones that you will see tonight are some of the add to staff measures. one specifically being surrounding the rental licensing program. Um, another being the debt and long range financial planning model or debt study and long-range financial planning model. Priority three requests are those that enhance service levels to the community. So, beyond the services we already provide, key drivers of the 2026 budget in no particular order, but going down first here, wage increases. Wage increases is going to be one that you hear me say time and time again year-over-year purely for the fact that wages make up 75% of our general fund budget. We are in the business of providing service. We are not in the business of providing widgets. The Minnesota Paid Family Medical Leave Act will be going into effect on January 1st, 2026. With that, the state will be imposing a 0.88% 88% payroll tax on wages earned. The state law does require that employees cover employers cover a minimum 50% which is what we are proposing currently. In 2026, we will be having midterm elections, meaning we need to add back staff that are temporary for those elections. So that will cost about $45,000 in staffing. We do have for the state fire aid the Savage fire relief association which is their pension benefit is dissolving um over 2025. What that means for us as the city of Savage with the state fire aid is that we get to retain it. Um while there is an active fire relief state statute requires that the cities pass through any fire state aid that they receive directly to the fire relief association um to fund their pension. These dollars now that they are retained can be used to directly offset fire department wages and benefits. Health insurance costs for the city employees has gone up. Um, in 2024, the city did go out and solicit bids for health insurance providers, and we did award a direct contract with health partners. In that first year, we did secure a 16.8% reduction. However, in 2026, they ensured us that we would have a 12% rate cap. Um, and come to no surprise to all of us, uh, they did give us the full 12% rate cap. So, we are experiencing that. We have our priority level one increases. A full list, a full comprehensive list of all of the requests that were submitted by departments is included in your packet. I believe it's attachment four. Um please note that's about a five fivepage document. Pay attention to the headers at the top. The first three pages I believe are those that are included and then the last two are those that are requested but not recommended to be funded. That is just again fully inclusive list just to show everybody what was asked for, what we are proposing and what we are not proposing. 2026 will be the second year of the dedicated equipment levy coming online. So that is an effort to reduce our need to bond for equipment. Essentially we're trying to not pay unnecessary interest on lower cost, shorter lifespan items like bobcats and pickup trucks. We will retain or continue using equipment certificates for those higher expense longer life items like snow plows and fire trucks spreading that cost over multiple different years of residents. We also have the fire station remodel loan payment. So, Fire Station One was approved at the beginning of this year to go under a pretty extensive renovation to get up to where it needs to be to um satisfy the full-time fire service model that we've transitioned to in 2020. We are paying half of that with public safety aid that we received in 2023. The remaining half is proposed to be paid for through an inter fund loan. The terms of that loan will be defined here in coming months. Um right now we have an estimate in there which is admittedly a high estimate just to play it safe. Um but once that project is fully complete here in the coming weeks we will be coming to you with a proposed interfund loan structure. 2026 will be the second year that we are phasing in the Axon agreement. So Axon is the system that has body cameras, interview room cameras, tasers. It's an all-inclusive package for police equipment. In 2024, the city implemented this package. Um the annual cost is about $225,000 a year. In an effort to not have a $225,000 impact to the levy in the first year, the city decided to phase in that overtime utilizing public safety aid to offset the remainder. So year two will in 2026, it will be 50% funded by levy and 50% funded by public safety aid. Then lastly, we have our add to staff requests. So there were three add to staff requests that um administrator Larson and I are proposing to move forward. One of those being our facilities maintenance supervisor position to start our process of building out a true facilities maintenance department and division. Um rather than just focusing solely on the custodial aspects of it, we also have our code enforcement rental licensing manager. This goes directly um with that rental licensing program that council is asking to see stood up. And then we have a fire inspector which is going to go handinhand with that rental inspector, but also is going to tie in the gap between a firefighter and the fire marshal track. Looking at our 2025 to 2026 expenditure C comparisons by category. So, as you will see, wages is our biggest driver. Not should come as no shock since we are 75% of our budget is wages and benefits. This does include a 3% cola, but the main reason you are seeing that larger spike has to do with the fact that we do have those three positions included in this that is included in the wages and benefit side. That's why it's looking like such a jump. It's not just that base wages are alone causing that. If you look at supplies, services and other charge supplies, services, other charges and repairs and maintenance, you will see there's quite a bit of fluctuation. Some of that fluctuation has to do with we are just doing quite a bit of cleanup of our chart of accounts internally. Uh making sure things are categorized into the right buckets. Um under services is really where we're primarily seeing an increase and those really have to do with in 2026 we're proposing a website redesign. The reason being it's not just that we want our website to look pretty. However, we are under ADA compliance regulations that go into effect u by April 2027 that we need to be in full compliance with. This redesign will get us into the full compliance state. We do have the debt study and long range financial plan that will be beginning or is proposed to be beginning in January of 2026. That is partially offset by transfers in from other funds. it's not fully bearing the weight of the levy. However, the full cost is reflected in here. Um, we also have our building inspections, planning and licensing software replacement. The current software that we are using um is a logist group um software. However, it is end of life and end of support. Meaning that when that system fails, it cannot be stood up again. So, we are in a little bit of crunch time trying to find a replacement for it. Our community development staff has been uh meeting with a lot of different software providers to try to figure out what's the best option, what's the lowest cost option, but also provides the best enduser experience for our customers. We also are proposing that the laser fee system, which is where you get your agendas off of um it's what the city uses for archive and record management. that system we are proposing to move to the cloud. The benefit of doing so allows us to have unlimited readonly user access rights which means if anybody's sat during these city council meetings and hasn't been able to get onto the agenda because it says a session timeout error it's because we don't have enough licenses to allow for it. This will solve that problem. Under capital outlay, you'll see that $75,000. That is the amount that is currently pencled in for that fire station loan repayment. That will get refined as we have the final terms set. And then under transfers out, you'll see $242,000 there. So that $242,000 in 2026 is made up of $200,000 going towards that dedicated equipment levy. 12,000 is going towards the opioid settlement fund support. So that's where we're paying for the embedded mental health social worker. um agreement with Scott County. Um and then we do have 30,000 for the high-speed election scanner. That was a request by Scott County that the major three major cities in Scott County each purchase their own to help with the influx of absentee voting that we've been seeing and accuracy. Same numbers, different way of showing them essentially. Uh so this is just showing the comparison by major function. So across all of these, the largest increase portion is going to be due to wages and benefits. Within general government, that's where you're seeing the addition of that facilities maintenance supervisor, the debt study and long-range financial plan, website redesign, and laserfish cloud conversion. Under community development, you're seeing the addition of that code enforcement rental licensing manager position, and also the replacement of the building inspections and planning software. under police. The reason that this one's going up has to do with that Axon agreement. Now that that equipment is fully implemented, we now need to show it as an operating budget item rather than a capital purchase item. So that's why there's such a large influx. It's $225,000 that used to sit in that transfers outline item in 2025 is just getting pushed over. Under fire, we have the addition of the fire inspector position. Again, this is going to coordinate with the rental licensing program as well as fill in those gaps between a firefighter and fire marshall for that career trajectory. And then underneath public works and parks and recreation, beyond wages and benefits, there's minor adjustments just to tweak budgets to get them up with inflation and software increases and insurance increases. [Music] Looking at our percentages by major function, you've seen this chart many times. Um, obviously our largest budget within the general fund is our police, which should come as no shock given that our police department is the largest department in the city. Um, the fire department comes close to it. Uh, that department is being built out right now as we're starting to move towards a full-time transition, but also there's a lot of efforts that go behind that. There's has its own full standalone facility, so there's a lot of costs that go along with it. General government encapsulates quite a bit. You have admin, finance, IT, um, communications, etc. So, there's a lot that falls under that category. Um, and then your parks and wreck for or public works, excuse me, for your street maintenance, snowplowing, things of that nature. This is a sheet that you now have seen. This is your fourth time seeing um, what I call the levy composition. I will just quick go through this for the sake of public who has never seen this before as to how to read this. I'm sorry for the people in the audience. This is very small print. On the left hand side here we have the 2025 actual levy. So this is what we're currently operating under. The general operating levy was 20,770,965 while the debt service levy was 4004,333,000. collectively bringing us to our 25.1 million. As we move to the right, these are the things that are being added to the levy for 2026 or proposed to be added to the 2026 levy and the impact of each item is directly beneath it. So, as you can see, the base wage increase here of this 1,219,000 has a levy impact of 4.86%. And then we have our dedicated equipment levy coming on for year two. Our fire station remodel, the axon agreement, the second phase of that. Our priority one department increases. Our priority twos, this is the long range financial plan. Half of that is being covered by tax levy. The remaining half is being covered by the revolving. No, this one's being covered by the economic development fund. The debt study is being funded by the revolving debt fund. Under priority threes, this is where we have the laserfish cloud conversion and that scanner. And then we have our three add to staff requests. The reason that you are seeing that code enforcement and rental licensing manager looking like it has such a higher salary. It's not. um the facilities maintenance supervisor and the fire inspector are both pencled in to start July 1 of 2026 whereas that code enforcement and rental licensing manager is proposed to start January 1. Reason being when we sat down with staff uh we determined that the lift to get that rental licensing program up and running before the end of the year was going to be pretty substantial. So we are proposing that that be a fullear position. The other two are more support positions in nature. Could we use them right away? Absolutely. But we can make do without them until at least July. Then, as we see under new effort number eight, we have 12,000 for that opioid settlement fund support. We do bring in about $45,000 a year from opioid settlement funds. However, our contract with Scott County is closer to $89 to $90,000 a year. Um so that remaining gap has to be covered. Um right now there was adequate fund balance to get us through 2025 and most the way through 2026 because of some of the settlements being paid in a lump sum rather than annuities. However, going forward, we are going to start having to see this line item increase in order to support that embedded mental health program. Then lastly down here we have our debt levy and rounding adjustment. So this is the $52,000 decrease. This is coming from the fact that we sold a 2025A series bond in July of 2025. Here the initial projections had that higher um of what we expected interest rates to be. We also did see two separate bond series mature in February of 2025. So, with the maturity of that and then the lower interest rate than anticipated, we are able to safely reduce our debt levy by $52,000. Looking at how this speaks to the median value home, there's been a lot of numbers thrown out there, um, which is admittedly confusing. Minnesota, as I've said time and time again, is the second most complicated property tax calculation there is in this country, second to California. Um, why? Ask the state legislators. The main focus here on this, we will pinpoint on that $417,700 house. That is our median value home in Savage. Meaning 50% of the houses in this community have a value higher than that. 50% have a value lower. What that also means is 50% of our property owners are going to see a higher increase than this. 50% will see a lower increase than this. So as you move from left to right across that you have your estimated market value. This is determined by Scott County um by the Scott County assessor's office. You then if your house is homesteaded, in this example we are assuming it is, you deduct that homestead exclusion, which is a calculation determined by the state department of revenue. That then gives you your taxable market value. From there, you then apply the class rate, which everything under $500,000 when you get to taxable market value is taxed at 1%. Everything over $500,000 is taxed at 1.25%. Again, these are rates that are determined by the state of Minnesota. Neither the city nor the county have any control in these. Where the city does start to see control is in that city of Savage tax rate. So, this is going to be our levy that we need to operate divided by our total tax capacity within the city. That comes to 43.5% is our estimated and projected tax rate for 2026, bringing us to $1,778 for 2026 on the median value home or an increase of $121 for the year. About $1010 per month if you want to get nitty-gritty on it. Beneath this is just the chart from the state department of revenue on how the homestead market value exclusion tiers work because there is a phase out. Uh there is a max exclusion of $517,200. Um so any homes valued above that will see zero homestead exclusion. The chart on the or kind of breakdown on the right that you're seeing there is just how to calculate it and show your math kind of way. Looking at our historical tax levy and city tax amount, as you can see, as our tax levy goes up, our median value home property tax has to go up as well. Um, so in 2026, we are seeing that 17 or 1,778 for the year there. Um and you will see that over time our debt levy has reduced um since the years in the kind of earlier or later 2000s early 2010 to 15 time frame um as we've kind of phased in this new debt management um plan. Our operating levies are increasing. Now keep in mind 2020 is when we had full-time fire come on. We've also had a series of other positions be added since 2020. Looking at how the historical median value home and city tax rate interact with each other, you will notice that these are pretty much inverted of one another. Um, that's very deliberate. As your city tax capacity goes down or home values go down, property values go down, if your operating levy stays the same, your tax rate is naturally going to increase. It's just the way the mathematics work on it. Um, what you will notice, we did see a substantial reduction between 2013 and 2023. Now, I will warn you, the difference between 2022 and 2023 was a market fluke. Um, that was just across the metro. We saw valuation spikes and the following year we saw a decrease. That was a market correction. So now as we get into the 2023 to 2026 um you will see we're on the upward trajectory again. Reason being is primarily the cost to maintain city services as they are is going to outpace housing market values in Savage. This will be different community from community. Um everybody has a different tax makeup. In Savage we are 75% residential. So our housing in inventory and what housing market values do plays a huge role in what our tax levy is going to be or our tax rate is going to be. [Music] If anybody has any questions or would like additional resources, I will refer you to the League of Minnesota's website, Department of Revenue, and there is the link for the homestead market value exclusion. That is one that is a little bit unique. Um, and if you're a nerd like me, you find it interesting to read that. So the link is there. Next step. So tonight, city council is going to adopt the preliminary maximum tax levy. After this point, the levy can only be reduced. It cannot be increased. Thus the maximum staff will continue to review and refine the preliminary general fund budget before December 1st. We will continue to have work sessions through the remainder of the fall to review all other city operations. The formal truth in taxation public hearing will be on December 1st on at 7 PM here in the council chambers. It is at that truth and taxation public hearing that public comment is welcome. That is the really the only time that the state statute allows public comment on the budget process during a formal meeting. Then on December 15th, the city council will adopt the final 2026 budget and tax levy. Are there any initial questions from the council? Uh, not a question, but just for our residents, um, after tonight's meeting, we will get that information to the county and then the county will issue the prelim preliminary tax levy notice. >> Yep. So, the we will submit this um honestly I'll submit this tomorrow or Wednesday to the Scott County and then the county will work to get those notices out to properties end of October, beginning of November. Uh on that will be every taxing jurisdiction of when they are having their truth and taxation notice because it's important to remember the city is only one single line item on your tax bill. There are the school district. The county is its own taxing juris jurisdiction. Mosquito control is its own taxing jurisdiction. There's a lot of components that go into your property taxes that the city does not control. Um it's we are typically the most seen um because people just assume they live in Savage, therefore all their property tax money is going to Savage. We only see about onethird of what people pay on their property taxes. So yes, that will be early mid November is what I would expect to see those. >> So early mid November, our residents should all get those statements so then they can see the actual impact of the changes from all of the taxing jurisdictions including the city and then they'll have the opportunity to come to the truth and taxation that all of the taxing jurisdictions will hold. >> That is correct. Yes, it is state statute that all taxing jurisdictions must hold the truth in taxation hearing for public comment on their um proposed budget and tax levy. >> All right. Does anybody from the council have any questions or any concerns? Anything? Um I I do want to just reiterate we have um typically always set this um as high as what seems reasonable. um we will continue with our budget conversations um and see what we can do to decrease this levy and that's why the final one will be December what we actually um um issue um but um this is is the most reasonable highest level that we think um we would need >> the work has only begun >> not only begun there is so much information that has gone into all of this for us and as you had said, we've been working on this for months and um that doesn't include what you and your staff have been doing. Um but um it it's a lot there's just a lot of moving pieces here. So um yeah, seeing no questions um you need a motion from us. I think >> that I do. So with that, I'll turn it over to you, mayor, for the uh council action. >> All right. I am looking for a motion. Oops. Nope. Try this. Um, looking for a motion to adopt a resolution to approve the preliminary 2026 tax levy general fund budget and establish the truth and taxation public hearing date. Is there a motion? >> I'll make a motion. >> Second. >> Motion by Craig, seconded by Off Alford. >> Got it. You get it. Good. >> Um, all in favor say I. I. >> I. Opposed. Motion carried. Thank you, Matt, for all of your work. All right, we are moving on to um uh city council. Oh, you know what? I had one more question that I was going to ask our finance director and and I did uh and I'm just going to cover it while we're talking. We'll probably cover it again in December, but my question was um are tax accounts in a rears? Um, so we get paid twice a year um when people pay their property taxes and if people don't pay their property taxes it can be an issue for us. Where are we at for our taxes and arars? >> So we ended 2024 with about $195,000 in delinquent taxes. So that comes to under 1% of our overall tax levy. Keep in mind that is cumulative of multiple years of delinquent taxes. is not just saying in 2024 $195,000 of unpaid taxes for that that was levied in 2025. These there's some properties that go back to 2015 2007. I mean it's just time eventually the county will take action on it but there's a certain statutory limit before they can. >> The county will take action andor the homeowners sell. >> Correct. And when the homeowners sell, then generally those uh pass through property taxes that are in a rear get paid in full before the new person takes over. So, um I just it it's always something that we want to make sure that we keep in mind. Um and I know we've talked about it in the years that I've sat up here, but um at the moment it's not a cash issue for us. Um and it's not a it's a concern, but it's not something that's going to trigger trigger an issue for u making sure that we can keep the city running and the lights on. That is correct. That is why we maintain such the healthy fund balance that we do. So, >> thank you. All right. Moving on to uh city council reports. >> Bob, I know you had a scale meeting because I also attended that scale meeting. I I had to call in on my phone because um where I was there was no internet um access in the Hastings Public Library. >> So, it was um Yeah. So, I'm going to let you cover what I just listened to. >> I too did uh attend remotely uh via Zoom and it was uh part two of our uh presentation to uh the scale general membership about uh fire service within Scott County. And it was uh MCED by our our uh post Mr. Brad Larson and with major input by Chief Breznahan took the lead. uh uh with uh um three other members on the uh uh the board or the um >> panel >> panel panel we call it. I'm sorry if I forget all their names, but uh it was um it was really good to uh talk about the future of uh the fire service within uh within this county and and see the differences throughout the county that uh that we have to uh take into account on different levels of uh service providing and uh abilities and capabilities and how we uh how we need to work with each other. And and actually I shouldn't be talking about this. I should let the presenters tell all about uh how much they had uh uh to present on it if you had anything else to uh uh to add. But it was it was uh very informative. Um I do believe it was recorded. So I think it might actually be posted on the scale website if anybody would like to see the presentation. And it uh I believe uh both last months and this month's are uh are recorded and on the scale uh scale.org scaleinfo.org scale s c a l e i n fo.org is the website for scale and uh anything else to add gentlemen? Well, mayor, >> yeah, what I'm going to add, um, so the presentation talking about the fire service in the county, um, we have the three big cities, you know, in the north, Shockby, Prior, Lake, Savage, and how we have all moved to full-time fire and how that's playing into their our fire service models. But then as you start traveling south, um we have, you know, such a rural area in the south, you know, part of the county and to have those fire services still being on a paid on call and um the idea of a full-time service model um just um be being so far out of what they're doing right now and arguably their needs. Um but so to have this scale conversation with all of these different players with so many different um models happening at the moment and how every everybody is playing that out. Um I think one of the most um interesting parts of the conversation will be how our fire service does so much with their medical calls and um how other fire service um are not doing that. We we have found that more of our calls now that we've moved to the full-time fire model are medical. Um and um it it it's just where it it looks like it's going. I mean, for for us certainly, but for I think other communities and and we'll see how how that plays out. But um I just want to thank Chief Breznahan and and Administrator Larson for all of their work in in preparing that. Um, I just thought it was a really great, honest, open conversation amongst the the different uh fire personnel in the different departments and talking about where they were at and where they saw things going. Um, I I didn't prepare. I didn't have paper. I had Post-it notes. You should see my 8 and 1 half by 11 sheet of paper with all of my Post-it notes on both sides because I was vigorously taking notes. I just I thought it was just a great dialogue. Um and and those are the things that we have to keep doing I think with scale right we have to keep having these conversations and the understanding that we're all doing different models and we have all have kind of different things happening our cities are all different you know um but to the extent that we also work together for so much of this the mutual aid conversations are just really really fascinating um and play a part in this um but I think one of the I'm not going to get the stat right because I don't have my post-it note but the average per household in Minnesota versus the other 50 states were >> uh the in 20124 the city of not city of state of Minnesota on average paid $280 in fire protection. Fire protection means fire departments uh fire organizations that are providing that fire service. On average, when you take all states into account, on average, states across the United States pay 497. So, we're 48th in the United States, an investment into the fire service. >> I thought that was probably one of the most shocking stats I heard that morning. Um and >> and that was and that was by the Minnesota Center for Fiscal ex excellence which is generally a more conservative think tank that's looking for ways to you know reduce costs in taxes etc. So >> and I I think Minnesota and the paid on call uh fire model that we've used for so long um has played into that. Y I I think that's just been a huge um part in how we have done it here and have managed to do it, you know, for years and I just think we're now moving more towards where a lot of the other states are. But absolutely fascinating conversation and thank you Chief Brezahan and and Administrator Larson. I I just think um to have Savage be able to um lead that conversation um is really important. So, um, can I >> I also had a 169 coalition meeting. >> I'm sorry. Yes. I was just going to say any other meetings. >> Um, that was, uh, last Thursday. That was also a, uh, virtual meeting. Uh, we had difficulty getting a quorum, but we finally did. Uh, enough, uh, people showed up to the meeting. um kind of talking about the future of the 169 coalition and uh all the great things that we've done, but uh what are we going to do today and what tomorrow? So, uh, we're, uh, we have some, uh, self-reflection to, uh, determine what our future is and, uh, uh, that will be brought before the, uh, full membership fall meeting to determine what do you guys want to do or what don't you want to do. So, uh, that's the future of the 169 coalition. >> Perfect. Stacy, did you have any meetings? >> No. >> Megan? >> No. >> All right. Um, I'm just going to add we had um an introductory meeting with the MDTA. Administrator Larson and I uh Matt um had a really great conversation there. Um and I anticipate we're going to be having more conversations about the MTV MVTA. Um and uh oh shoot, we had one other meeting. No, I forgot to write it down. Yeah, I'll have to talk about it next time. Um, and then I just have a question. We have uh talked about the fire station remodel that did such a great job talking about how much it's going to cost. And I am hoping I'm going to put my hope out there right my ask out there right now as we're getting close I think and um I'm looking forward to a chance to uh do an open house or or something and and get a chance to show the residents what the changes are that we've made and and so many of them just because we have moved to that full-time fire and making sure that that facility for our firefighters who are there 247 have a facility that works. So, I'm gonna plant that seed. >> Oh, do I have a date being yelled at me? >> Saturday, October 11th. >> Saturday, October 11th from 10 to 1. >> It'll coincide with fire prevention week. >> Times up. >> Perfect. >> You'll have to come to the podium. >> Oh, relief association. >> That was the one I forgot. Oh, the we had a Savage Fire Relief Association meeting um emergency meeting kind of set up. Uh we had to vote to replace a board member and then uh we also had to there was a payment uh conversation that a decision needed to be made. So, we had that meeting as well. Um the open house, you said October 11th. Um, and I assume we're there going to be lots more information about that and people can look forward to coming and touring the fire station. Um, oh, and treats and tunes. Treats and tunes tomorrow night. Um, and we will do a ribbon cutting and it's at the new Creek Hill Park right from 5 to 7 with the ribbon cutting at 6ish. Okay. Five 5:30. >> Five to six. >> Five to six. five to six. So, everybody come for treats and tunes. It'll be fabulous. Um I've loved the turnout. Um and with that, um is there any other written communication, general information, and followup >> from staff? >> All right. Um we will adjourn. >> Thank you everybody. >> Thank you. >> You get to go see if my doggy has destroyed anything. >> Oh no.