08-31-2026 - Budget CCM
Meeting of the City Council
Held at the Elk River City Hall
Monday, August 31, 2026
Members Present: Mayor John Dietz, Councilmember Cory Grupa, Councilmember J. Brian Calva,
Councilmember Mike Beyer, Councilmember Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Cal Portner, Public Works Director/Chief Engineer Justin
Femrite, Community Development Director Zack Carlton, City Clerk Justin
Dunford, Police Chief David Kuhnly, Finance Manager Lori Stich, Accountant Jill
Knutson, Deputy Fire Chief John Kreuser, and Records Specialist Dawn
Robertson.
1. CALL MEETING TO ORDER
At 4:08 p.m. the council and staff met downtown to discuss reconstruction plans. The meeting ended at
4:57 p.m. The Council reconvened, and the special meeting was called to order at 05:08 p.m.
2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3. CONSENT AGENDA
Moved by Councilmember Calva and seconded by Councilmember Beyer to approve the
following consent items as outlined in their respective staff reports. Motion carried 5-0.
3.1 August 3, 2026, Regular Meeting Minutes
3.2 July 20, 2026, Regular Meeting Minutes
3.3 Hire Paid On-Call Firefighters
3.4 MGT Master Services Agreement 2026-29
4. 2027 BUDGET
4.1 2027 Budget
City Council Minutes
August 31, 2026
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Page 2 of 3
Mr. Portner presented the staff report and noted that adjustments had been made to the budget
proposal to reflect more refined figures. He reported the city received the preliminary net tax capacity
from the county, which allowed staff to better determine specific impact areas within the budget. He
shared that several capital items were removed from the previous budget proposal.
Additionally, he highlighted revenue adjustments involving the ERMU PILOT (Payment in lieu of taxes)
and a portion of the Otsego fire contract, stating that these adjustments reduced the preliminary levy.
Mr. Portner discussed potential revenue and operational opportunities. These included single family
rental license inspection fees being reviewed by the Community Development Department, updating
room rental and pavilion fees and reviewing athletic fees. Additionally, he outlined options to collect a
percentage of charitable gambling net earnings and potentially seeking reimbursement for specific public
safety calls.
Ms. Stitch stated the city charges for repeated false burglar alarms. Council directed staff to track false
fire alarms from repeat offenders.
Mayor Dietz requested clarification regarding budgeted Police Department wages. Chief Kuhnly
explained that the figures reflect cost-of-living adjustments and step increases. Councilmember Beyer
asked for clarification on the 2027 attrition plan. Chief Kuhnly reviewed the established plan.
Mayor Dietz distributed a proposal outlining strategies for budget reduction and options to decrease
the proposed tax levy. Mr. Portner provided a supporting document detailing the services departments
provides to serve as a framework for identifying potential budget adjustments.
There was discussion on the importance of public education regarding the impact of the levy on
individual homeowners.
The Mayor and Council expressed consensus that they do not desire to reduce services and agree that
a double-digit levy increase is not acceptable.
Councilmember Calva, inquired about the feasibility of the Mayor's proposed reductions. Mr. Portner
said it is possible but needs to review them to ensure they are all feasible. He stated he does not
recommend adding further unsustainable intergovernmental transfers. Councilmember Beyer supports
the Mayor's ideas and concurred with Councilmember Wagner that public safety departments should
identify areas for reduction by five percent. Councilmember Grupa agrees that a double-digit increase is
not reasonable.
Council will meet again to continue budget deliberations and review the final budget for approval.
5. MOTION TO ADJOURN
Moved by Councilmember Wagner and seconded by Councilmember Beyer to adjourn
the meeting of City Council. Motion carried 5-0.
The meeting adjourned at 6:27 p.m.
Minutes prepared by Dawn Robertson.
City Council Minutes
August 31, 2026
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Page 3 of 3
_________________
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John J. Dietz, Mayor
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Justin Dunford, City Clerk