Ivanhoe begins 2026 budget planning, flags MN Paid Leave and water/sewer rate issues

The Ivanhoe City Council used part of its Aug. 25 meeting for a budget workshop focused on preparing budget assumptions for 2026, including wages, paid-leave contributions and utility rate policy.

City Administrator Dianne Beckendorf led the discussion. Councilmembers reviewed options for 2026 wages emphasizing a combination of cost-of-living adjustments and performance-based increases. The minutes record a discussion of Minnesota Paid Leave, showing a total contribution of 0.88 percent of payroll with roughly equal employer and employee shares (recorded as 0.44 percent each in the minutes; a typographical character appeared in the original minutes and is corrected here to 0.44%).

Councilmembers also reviewed debt spreadsheets and discussed water and sewer policy for 2026; the minutes indicate all properties will pay the base rate for water/sewer and Minnesota Department of Health fees. Capital outlay needs were sketched out without dollar specifics — parks, pool, streets, equipment and machinery were listed as priorities — and the council discussed using the Bolton & Menk CIP to prioritize street work.

The council also anticipated a roughly 5 percent increase in the sheriff contract for 2026; transfers in/out were expected to remain the same and the council scheduled review of water/sewer rates and the preliminary levy in September.

The workshop produced direction for staff to return to the council with specific numbers and formal levy/fee proposals at a future meeting rather than any immediate binding decisions.