Isanti City Council reviews 2026 draft budget, flags liquor-store shortfalls and police overtime

City staff presented the Isanti City 2026 draft budget at a council work session and told elected officials they had revised several revenue and expense lines after updated 2025 figures.

Nick, a city staff member presenting the budget, said “liquor store revenues are slightly down currently in 2025,” and staff responded by setting 2026 liquor-store revenue projections to match 2025 budgeted numbers rather than assuming an increase. Council members and staff discussed possible causes, including cannabis competition and lower alcohol consumption among younger cohorts.

The budget presentation included a proposed increase in incidental police overtime from $30,000 to $45,000. Nick said that overtime totals have fluctuated in recent years: “2024 actual ended up being $84,000, and 2023 actual was $52,000,” and that 2022 and 2021 were $90,000 and $70,000, respectively. John, with the police department, described overtime as an inherent aspect of 24/7 policing and warned that staffing changes or injuries can make overtime unpredictable.

On the levy, council members asked how much would have to be cut to hold the tax rate flat. Nick said the city would need to reduce roughly $182,000 in budgeted spending to bring the levy-change amount to zero; alternatively, doing so entirely with reserves would roughly double the planned reserve use (staff projected using about $185,000 of reserves for 2026, and would need roughly $360,000 to make the levy flat). Nick also said the city’s unreserved general-fund balance was about 62% in 2024 and that policy targets range roughly from 40%–70% with the option to go as low as 30% if a replenishment plan is in place.

Other line-item changes in the draft budget included adding a social-media archiving annual renewal, reflecting a new copier contract for city hall, increasing police-related software/license renewals from three to four, and a small wage increase for a newly hired parks employee. Staff confirmed the final payment on a 2014 sewer bond is in the current check batch and will remove that debt from future schedules, lowering projected debt-service obligations in 2026.

Council and staff also discussed a $2,500 informal traffic study for Whiskey Road intended to support a request to the county to reduce the posted speed limit near the turn; Miss Wood said the goal was to partner with the county to fund and act on a study rather than to make physical changes to the roadway.

Staff noted a continued strong year for building permits, including two apartment projects that pulled permits this year (Centennial Apartments and a fourth Park Brook Apartments building), which could boost permit revenue if projects continue. Nick cautioned that permit revenue is conservative in the draft because development activity can pause or change.

Nick said work-comp and property/casualty insurance renewals were still pending (renewal submissions had been made and quotes typically take about 30 days) and that union contracts remained unsettled, so some salary and insurance figures may change before final adoption.

The council set a truth-in-taxation public hearing for the council’s first December meeting (Dec. 2) and scheduled final budget adoption for Dec. 16; staff said finalizing figures at the second December meeting would allow them to meet the county’s Dec. 26 deadline for submission.

The council handled the meeting’s procedural items at the start and end of the session: it adopted the agenda (motion by Councilmember Heaman; second by Councilmember Holmgren; vote 4-0) and adjourned on a 4-0 vote after a motion by Councilmember Peterson and a second by Councilmember Holmgren.