Delano reviews five‑year budget forecast and considers Ehlers for finance advisory services

City finance staff told the Council how long‑range obligations and capital projects could affect future levies and discussed options for financial advisory services.

Finance Director Brian Bloch reviewed assumptions behind a five‑year General Fund forecast, including payroll, benefits, law enforcement contract costs and capital expenditures. Bloch noted projected debt service obligations tied to the 2027 street reconstruction project and the future McKinley Parkway intersection improvement, and said several existing debts are expected to be retired during the forecast period.

The forecast assumes roughly a 6.5 percent annual increase in the capital fund, though Bloch warned future equipment and construction cost changes could require adjustments. The forecast projects a 2027 tax levy increase of approximately 9.2%, resulting in an estimated tax rate increase of approximately 1.3%; staff framed the forecast as a directional planning tool rather than a precise prediction.

Separately, City Administrator Phil Kern discussed the City's need for financial advisory services. Kern said the City historically worked with Springsted (now Baker Tilly) but that Baker Tilly has reduced municipal consulting in Minnesota. Staff evaluated alternatives and is recommending Ehlers as a full‑service municipal financial consulting firm that can be engaged on a project‑by‑project basis beginning with upcoming bonding work. Kern said no long‑term commitment would be required and Council generally supported bringing the item forward for future consideration.