Red Wing City Council Regular Meeting – November 24, 2025

The Red Wing City Council met in regular session on Monday, November 24, 2025, at City Hall and virtually. Council President Janie Farrar called the meeting to order at 6:06 p.m.; all seven council members were present. The meeting included a holiday stroll proclamation, an Office of Energy Transition grant update, public comment, consent agenda approvals, railroad quiet zone actions, a zoning ordinance introduction, adoption of the amended fee schedule, and a 2026 budget update. The meeting adjourned at 8:50 p.m.

Proclamations and Recognitions

• Mayor Gary Iocco proclaimed the 24th Annual Holiday Stroll on Friday, November 28, 2025, and recognized the women who founded the event. Nancy Knutson, who brought the idea from Red Lodge, Montana, was acknowledged in her absence.

Presentations

• Community Development Director Kyle Klatt provided an update on the $1 million Office of Energy Transition grant awarded in 2024 by the Minnesota Department of Employment and Economic Development (DEED). The grant funds economic resiliency and tax-base diversification planning related to the nuclear power plant and potential state-level tax base changes.
• Project components include a land development feasibility analysis, a long-range financial strategy, a port/waterway development plan, and an orderly annexation plan. No local contribution is required.
• For the financial strategy RFP, staff recommended Northland Securities ($28,000) over Baker Tilly ($45,000–$57,000). For the land feasibility analysis, staff recommended NEO Partners (approximately $246,000) over Bolton & Menk (approximately $267,000) after reviewing 11 proposals and interviewing four finalists.
• Klatt said formal proposed contracts will be presented December 8. Council President Farrar asked whether this aligns with the “Leading the Way” housing initiative; Klatt said it fits with the housing study and will inform the next comprehensive plan. Council Administrator Chris Heineman said communication with community partners is already underway and that the Prairie Island Tribal Community discussions will inform the land analysis.

Public Comments & Testimony

• Amber Dawn Plank Warfield, Ward 4, Red Wing, spoke twice.
• In her first comment, she cited statistics asserting that non-Hispanic white people are the largest racial group receiving food assistance and that white Americans are heavily represented in categories of crime, substance abuse, and economic vulnerability. She argued that framing whiteness as a baseline is a myth and that the city should not overlook issues affecting white residents.
• In her second comment, she voiced strong concern about a proposed crisis program (“Hope Squad”), alleging that an adult in a position of authority who has bullied transgender youth is involved, and that the school district has a documented history of bullying incidents. She argued that untrained children should not be put in roles of mental health triage. Mayor Iocco later clarified that Hope Squad is a peer-to-peer program and does not replace trained mental health professionals.

Consent Calendar

• The Council approved the Consent Agenda, minus Item 8F, by a 7-0 roll call vote. Items approved included:
  • Bills/Warrants #125222–125433 totaling $2,220,620.89.
  • Minutes from the November 3, 2025, workshop and November 10, 2025, regular meeting.
  • Finance report.
  • Resolution No. 8135 accepting a donated 2001 Chevrolet Malibu for Fire Department training.
  • 2026 license renewals and registrations for tobacco, low potency hemp edibles, solid waste haulers, pawnbrokers, and junk dealers.
  • One-day temporary on-sale liquor license for the Anderson Center’s December 5, 2025, “A Few of My Favorite Things” reception.
• Item 8F was pulled by Council Member Becky Norton. The Council then approved all Board and Commission appointments by a 7-0 vote: Katie Nolan, Zamira Mendoza, and Stephanie Rogers (Arts & Culture Commission); Amanda Motschke and Ronald Skjong (Library Board of Trustees); Tammy Jaynes (Sister Cities Commission); Dennis Brennan (Sheldon Theatre Board, first term); Hugh Brown (Sustainability Commission); George Hintz (Advisory Planning Commission); Brooke Reinke (Heritage Preservation Commission); and Sara Hoffman (Housing & Redevelopment Authority Board). Most terms expire December 31, 2028. Norton noted prior workshop discussion about rules of order; Mayor Iocco encouraged residents to apply for boards and commissions.

Discussion Items

Railroad Quiet Zone Through Downtown Red Wing

• Engineering Director Zach Regnier presented the quiet zone plan. The city initially expected a quad gate system at Jackson Street costing $750,000–$1,000,000 with a roughly two-year railroad installation timeline. Staff instead identified a channelization system that can be installed by city crews for approximately $50,000 total, saving an estimated $700,000–$900,000.
• The required 60-day notice of intent review period ended November 17, 2025, with one supportive comment from ADM noting continued use of horns at reduced volume for internal switching.
• Regnier said the Federal Railroad Administration approves the quiet zone, while the railroad implements it. Train operators may still sound horns at their discretion.
• Council Member Vicki Jo Lambert asked about the connection to the Old West Main project; Regnier said the projects had been tied together for funding purposes but that never materialized, so the quiet zone was separated. Council Member Ron Goggin asked about the $13,800 contingency; Regnier said it relates to the channelization installation and unexpected conditions, but based on other cities’ experience, $50,000 should be sufficient.
• The Council voted 7-0 to authorize staff to construct improvements at the Jackson Street crossing.
• The Council voted 6-1 to authorize an agreement with Bolton & Menk for $21,200 to develop a concept and cost estimate for future pedestrian improvements at Broad Street, with Council Member Ron Goggin dissenting. Staff noted Broad Street improvements are needed to maintain the quiet zone and improve pedestrian safety.

Ordinance No. 230, Fourth Series – Non-Residential Zoning Districts

• Director Klatt explained that the ordinance reorganizes non-residential zoning districts for readability and consistency, similar to the residential district reorganization. Approximately 95% of the changes are structural; the only substantive change is elimination of the B2A commercial district, which no longer exists in the city.
• Council Member Lambert asked whether current businesses would be affected; Director Regnier confirmed they would not.
• The Council voted 7-0 to introduce Ordinance No. 230 on first reading.

Resolution No. 8137 – Budget Adjustments 2025-02

• Administrative Business Director Hallock presented the resolution to recognize donations received by the city and authorize their expenditures.
• Council Member Beth Snyder said Red Wing is a very generous city; Council President Farrar thanked donors.
• The Council voted 7-0 to adopt the resolution.

Ordinance No. 229, Fourth Series – Fee Schedule Adoption

• City Clerk Melissa Hill noted that clerical errors in monthly parking rates had been corrected and that the 19% administrative surcharge on PUPP fees was removed following Council concerns.
• Council Member Becky Norton raised the Perpetual Flower Fund, saying she was hesitant to continue accepting new perpetual flower commitments. A motion to adopt the fee schedule minus the Perpetual Flower Fund was made by Council Member Beth Snyder and later withdrawn after discussion. Staff recommended not eliminating the fee until further analysis; Public Works Director Shawn Blaney reported two requests this year, one in each cemetery. The Council agreed to revisit the issue in a 2026 workshop.
• The Council discussed employee parking permits and the policy waiving overnight employee parking fees. Mayor Iocco said he opposes charging a fee without a guaranteed reserved spot; Council Member Donald Kliewer suggested possibly structuring it as a lease. Director Klatt said legal questions would need review and staff could bring back a clarified policy distinguishing business vehicles from employee vehicles.
• Council Member Vicki Jo Lambert proposed increasing the rental dwelling inspection no-show penalties, suggesting $300 for the first offense and $600 for the second. Council Member Ron Goggin said $300 was steep; Lambert noted appointments are scheduled in advance and require no-call/no-show. The final amended motion set the first-offense penalty at $150 and the second-offense penalty at $500.
• The Council adopted Ordinance No. 229 by a 7-0 roll call vote with two changes: the dwelling inspection penalty amounts were changed to $150 (first offense) and $500 (second offense), and the sentence waiving employee permit parking was struck. The Perpetual Flower Fund was left unchanged.

2026 Budget Update

• Director Hallock recapped the proposed levy and prior workshop discussions. The statewide average proposed levy increase was approximately 8.3%; Red Wing’s preliminary levy was around 5%.
• Hallock reported that with a 3% levy increase, the average Red Wing homeowner’s annual city taxes would decrease by $13.22; with 3.1%, by $11.54; and with 3.2%, by $9.86. Commercial and industrial properties would also see decreases.
• Under a 3% levy scenario, the city would retain an estimated 10.43% fund balance excess above the 60% policy, equating to roughly 71.12% total fund balance.
• The ambulance fund has an accumulated deficit of approximately $5.1 million. Hallock explained this is an internal deficit with real cash implications, not external debt. The city budgets roughly $750,000 in annual transfers and expects $100,000–$300,000 in state funding, which may keep the deficit from growing in 2026.
• Council Member Kim Beise said the ambulance service should be fully funded or the city should consider drastic cuts; he was willing to support a higher levy. Council Member Kliewer initially suggested raising the levy for the ambulance fund but later retracted after confirming the city already levies for the annual transfer.
• Council members expressed concern about reliance on general fund balance, deferred capital maintenance, and the decision to cut performance pay. Mayor Iocco, Council Members Norton, Snyder, Lambert, and Beise supported restoring or preserving performance pay with a first-quarter review. Beise said he fundamentally opposes incentive pay in government but was willing to keep it if evaluated. Kliewer noted the pay study recommended ending the bonus program and supported keeping it funded at current levels, not increasing it.
• Administrator Heineman said each 0.1% of levy is approximately $27,500, and a 3.5% levy would not fully restore performance pay without fund balance use or additional cuts. A 3.6% levy would “barely” cover it. Staff suggested reducing contingency or deferring hiring to July 1.
• Levy consensus expressed during the meeting: Council Members Norton, Snyder, Lambert, and Beise supported 3.5%; Kliewer supported 3.2%; Goggin supported 3%; President Farrar supported 3.2% but could consider 3.5%; Mayor Iocco indicated 3.2% or 3.3% with a plan to review performance pay by the end of the first quarter.
• Memberships were discussed, including Coalition of Utility Cities dues averaging $26,000 annually. Hallock argued the membership provides a strong return on investment and that pitting memberships against performance pay is a “false narrative.” Beise and Norton said they would be reluctant to cut the Coalition membership. President Farrar asked Mayor Iocco and Director Hallock to continue that conversation outside the meeting.

Communication Items

• Council Member Norton reported on Beyond the Yellow Ribbon, the Arts and Culture Commission’s artist laureate program, and the Human Rights Commission’s Amos Owen Award presented to Dr. Jane Lorenzen.
• Council Member Snyder reported the Sheldon Theatre is ahead on revenues, especially group ticket sales, and that library usage is increasing across all four wards. The library will offer welcome packs for unhoused individuals.
• Council Member Goggin reported the Planning Commission approved a motion finding the Capital Improvement Plan compliant with the Comprehensive Plan.
• Mayor Iocco reported meeting with the RiseUp Executive Council, reminded everyone of the Holiday Stroll, and clarified Hope Squad’s peer-to-peer model. He also recognized the Fire Department’s cardiac save.
• Administrator Heineman highlighted the Fire Department cardiac save and Sister Cities updates, including a potential transfer of Sister Cities artifacts to the Goodhue County Historical Society and a possible 2026 delegation visit from a sister city.

Key Outcomes

• Agenda approved 7-0.
• Consent Agenda approved 7-0, with Board and Commission appointments approved separately 7-0.
• Motion to construct Jackson Street quiet zone improvements approved 7-0.
• Motion to authorize the Bolton & Menk agreement for Broad Street concept and cost estimate approved 6-1, with Council Member Goggin dissenting.
• Ordinance No. 230 introduced 7-0.
• Resolution No. 8137 adopted 7-0.
• Ordinance No. 229 adopted 7-0 with the dwelling inspection penalty changes and striking the employee parking waiver.
• Staff directed to continue developing 2026 budget materials using the Council’s expressed levy preferences, with final budget and levy adoption expected at the December 8, 2025, meeting.