07-28-2025 CCM Special BudgetMeeting of the City Council
Held at the Elk River City Hall
Monday, July 28, 2025
Members Present:Mayor John Dietz, Councilmember Cory Grupa, Councilmember J. Brian Calva,
Councilmember Mike Beyer, Councilmember Jennifer Wagner. Councilmember
Beyer Appeared via Interactive Technology
Members Absent:None
Staff Present:City Administrator Cal Portner, Business Services Director/Assistant City
Administrator Joe Stremcha, Public Works Director/Chief Engineer Justin Femrite,
Facilities Maintenance Superintendent Gary Lore, Engineering Project Manager
Ryan Sandhoefner, Environmental Services/Projects Specialist Joe Hale, Park
Division Foreman Josh Bass, Street Division Foreman Chris Teff, Wastewater
Treatment Chief Operator Matt Stevens, Park and Recreation Manager Jeff Shelby,
Liquor Operations Manager Joe Audette, Finance Manager Lori Stich, Accountant
Jill Knutson, and City Clerk Tina Allard
1.CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 4:04 p.m.
1.1Notice of Meeting by Interactive Technology
2.PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3.2026 BUDGET
3.12026 Budget Discussion/Presentations
The Council met with various departmental staff to review budget requests for 2026.
Park Maintenance
Staff noted there may be future discussion about doing long-term tree maintenance for the emerald ash
borer in Orono Park in order to keep some trees longer.
WWTP
There was discussion on the failure of a lift station and processes implemented to help prevent issues in
the future.
Garbage
Staff expressed its appreciation to Elk River Municipal Utilities for the excellent customer service they
provide to the community with this city program.
City Council MinutesPage 2 of 3
July 28, 2025
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Liquor
Mr. Stremcha reviewed the organizational structure for the liquor and cannabis operations.
Mayor Dietz expressed concern about adding a staff person to the liquor store budget. Mr. Portner
stated it would help free up the liquor store managers to be more engaged with marketing efforts.
Mayor Dietz suggested taking a step back from transfers from the liquor store fund in 2026 due to the
store construction projects. He also suggested dropping the General Fund Reserves from 45% to 40-
41% to offset the liquor transfer loss. Mr. Portner recommended waiting until after bonding for the city
construction projects, which could be a year or two down the road.
Cannabound
The Council had some questions on how the implementation process of opening a new cannabis store
will work, such as paying vendors, purchasing a large amount of products, and banking. Staff indicated
some of these components are still being worked out.
Senior Center
There was a discussion about why guests under the age of 55 are not allowed to participate at the
senior activity center. Mr. Shelby stated that the programming is designed for the senior members. He
stated they don't want to be put in a position to be taken advantage of, noting a few past examples. He
suggested they could schedule open houses a few times a year. Councilmember Wagner stated she
didn't see why a member couldn't bring a grandchild for a day. Councilmember Calva agreed, stating
seniors are proud of their kids and grandchildren and want to show them off. There was a discussion
about how a guest pass program could work.
There was discussion about conflicts between senior programming needing space and room rental
opportunities, which bring in revenue, at the community center. Funds for room rental are proposed in
the senior center budget to guarantee space for senior programming. Mayor Dietz questioned if this
would raise membership fees, and Mr. Shelby stated yes. Councilmember Grupa stated this should be
stabilized, so the seniors don't feel they are being pushed around and can have their own space and a
set routine. There was also discussion about whether the true costs of the senior center are being
captured correctly in the budget.
Recreation
Mayor Dietz questioned the elimination of the brochure that was mailed to residents and the drop in
registrations. He asked how the city could grow its programming. Mr. Shelby stated one of the biggest
challenges is space, noting that more gym and field space is needed. Mr. Portner also discussed how
there is less interest in some of the traditional programs.
Finance
There was discussion on restructuring some positions in finance and administration.
Fire
Mayor Dietz stated he was unsure he could support the new position request for a community risk
reduction specialist in the fire department. Mr. Portner stated this position would oversee the rental
program, do some backfill work for a future retirement, along with fire response during daytime hours,
which is lacking. Mayor Dietz stated that the current staff would have the capacity to handle the rental
inspections.
City Council MinutesPage 3 of 3
July 28, 2025
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4.MOTION TO ADJOURN
Moved by Councilmember Calva and seconded by Councilmember Grupa to adjourn the
meeting of City Council. Motion Carried 5-0.
The meeting adjourned at 6:27 p.m.
Minutes prepared by City Clerk Tina Allard.
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John J. Dietz, MayorTina Allard, City Clerk