10.2 SR 06-16-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
10.2
Meeting Date
June 16, 2025
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
2026 Budget Planning
Reviewed by
Lori Stich
Cal Portner
Tina Allard
Action Requested
Discuss the 2026 Budget.
Background/Discussion
2026 Budget Considerations:
▪ Cost of Living – Peers/neighbors at 3.5-4%
▪ Market Rate Adjustment – Compensation plan update
▪ Eliminate cell phone reimbursements with market rate adjustment.
▪ Health Insurance – 2026 rate cap of 19%
▪ Union contracts expire 12/31/25 (Patrol and Police Clerical)
▪ Property/Casualty insurance increases (2025 audit).
▪ Legislated Parental and Sick Leave mandate (estimated $80,000 citywide)
▪ Cannabis Retail Age Compliance Inspections
▪ Personnel Requests
▪ Cannabound/Northbound store construction and start-up.
Financial Impact
These factors guide staffs preparation of the annual budget.
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
None
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