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Minnetrista council proposes shifting levy funds and trimming water-project admin charge to boost reserves
Summary
Council members agreed in a Dec. 8 work session to shift $225,000 between road and general levies (reducing a proposed $625,000 roads levy to $400,000 and moving $125,000 to the general fund) and to keep the water treatment project—s administrative charge at $350,000 rather than rise to $450,000, aiming to raise the general fund balance to about 40% from a projected 38%.
City staff and councilmembers at Minnetrista—s Dec. 8 work session discussed a set of budget adjustments intended to stabilize reserves and smooth the financing of a multi-year water treatment project.
The council chair proposed reducing the roads levy from $625,000 to $400,000 and shifting $225,000 of the levy between funds so that roughly $125,000 is used to nudge the general fund balance from a projected ~38% to about 40%. The chair also recommended keeping the water treatment project—s administrative charge at $350,000 in 2026 rather than increasing it to $450,000, with the option to take an additional roughly $200,000 in 2027 if needed.
"I really think it would behoove us to levy 400,000 for roads and in that one item and then take the other 225,000— take 125 and put that towards our fund balance," the chair said during the work session. Council and staff said the modest change is intended to preserve transparency about how levy money is described to residents while retaining capacity to fund roads and the plant project.
City staff (Brian) explained the admin charge is a common practice for large capital projects to capture additional front-loaded administrative effort and recommended spreading some charges over the life of the project. "It's basically just adding expense to the project fund," Brian said, describing routine allocations of staff time and bond administration tasks over the bond's 20-year life.
Councilmembers cited new cost pressures: the addition of a 16th police officer estimated to cost about $130,000—150,000 and recent upward adjustments to fire-call costs (staff reported final numbers were roughly $26,000 higher than August projections because of increased calls). The road fund balance was discussed in exact and approximate terms during the meeting (figures discussed included roughly $1.4 million up to about $1.99 million depending on the levy and accounting assumptions). Staff said special-assessment receipts in recent years have been roughly $154,000 (2023) and $165,000 (2024) and that those assessments plus the adjusted levy should cover projected maintenance needs.
Staff will prepare updated budget documents and resolutions reflecting the levy shift and the reduced admin charge and will distribute copies for the public and council at the next regular meeting. County tax reporting will treat the non-debt cash levy as general levy for reporting purposes; staff noted the overall levy rate is not being increased under this plan, only reallocated between funds.
The work session ended without a formal adoption of budget adjustments; staff will bring updated resolutions and packet materials to the regular meeting for formal action.
