City Council Workshop Summary – August 24, 2026

The Red Wing City Council held a workshop on August 24, 2026, from 5:00 PM to 6:14 PM, to discuss two main items: results of a total compensation benefit analysis by DDA/HR and funding for community events and the Private Use of Public Property (PUPP) policy. Council President Janie Farrar presided. Council Members Vicki Jo Lambert, Beth Snyder, Kim Beise, Ron Goggin, and Donald Kliewer were present; Council Member Becky Norton was absent. Mayor Gary Iocco and city staff also attended.

Discussion Items

Summary Results of Benefit Analysis by DDA/HR

• Tessa Melvin of DDA/HR presented the 2026 Red Wing Total Compensation Survey, comparing benefits offered by the city to 11 benchmark cities. Red Wing was found to offer above-average benefits, often ranking in the top three for employer premium contributions.
• Key findings: All benchmarks provide medical, dental, life insurance, long-term disability, and PFML; Red Wing also offers vision (9 of 11), short-term disability (8 of 11), and a health reimbursement arrangement (unique among benchmarks). Red Wing offers individualized benefit packages based on employee status (union/non-union, full/part-time), while most peers offer the same package to all.
• Red Wing ranks first in employer contribution for high-deductible single medical plans and sixth for family; employees pay the least for single high-deductible coverage. For low-deductible plans, Red Wing ranks ninth (single) and fourth (family) in employer contribution. Red Wing provides longevity pay to none (only 2 benchmarks offer it), offers 12 floating holidays (5 others), and allows leave donation (7 others).
• Council President Farrar noted the city is self-insured and asked if peer cities are; Melvin will investigate. Council Member Goggin requested the presentation and data; Administrator Heineman confirmed it will be included in the agenda packet.
• Next steps: An employee survey on the value of benefits will be conducted over the next two weeks. Further discussion on insurance benefits is scheduled for October 5, 2026.

Private Use of Public Property & Community Event Funding

• Public Works Director Shawn Blaney presented two questions: (1) What level of city in-kind service support should be budgeted for three major events—River City Days, Holiday Stroll, and Fall Arts Festival? (2) Should the city continue direct financial support for four community events—Hispanic Heritage, Juneteenth, Pride, and Indigenous events?
• For major events: Current authorized support is $15,000 (River City Days), $6,000 (Holiday Stroll), and $6,000 (Fall Arts Festival). Recent average costs are $18,000, $6,600, and $7,600 respectively. 2026 costs for River City Days are approaching $25,000 due to more accurate tracking (including superintendent and corrections crew labor). Proposed 2027 authorization numbers ($25,000, $10,000, $10,000) reflect that tracking. The city does not track labor like other comparable cities; most peers absorb such costs without itemizing.
• Council discussion: Council Member Snyder emphasized balancing cost with revenue; Council Member Kliewer questioned charging for barricades and cones for city-wide celebrations since taxpayers already paid for them; Council Member Beise requested a breakdown of barricade/cone costs. Council President Farrar expressed support for continuing but wanted more data on increased service costs. Council members generally supported an increase but not to the full proposed amounts. Council Member Goggin supported a slight increase but not $25,000 for River City Days. Council Member Lambert agreed, wanting more data. Mayor Iocco advocated for increased funding due to the economic impact of these events.
• For the four community events: Each currently receives $5,000 annually (part cash, part in-kind). Public Information Officer Leise noted that from 2021 to 2026, the city provided this to Hispanic Heritage (for over a decade), Juneteenth (3-5 years), Pride (3-5 years), and Indigenous (3-5 years) as seed money. Average in-kind costs for these events range from $555 to $1,500. Council debated phasing out or reducing support. Council Member Snyder suggested decreasing support for events that no longer need seed money. Council President Farrar preferred a system where a pool of money supports new events rather than fixed amounts for existing ones. Council Member Lambert urged caution and a gradual reduction with communication to organizers, suggesting a decrease of $1,000 per year rather than an abrupt cut. Council Member Kliewer and Goggin supported limiting in-kind services to a maximum per event. Consensus emerged to provide up to $2,000 in-kind per event for 2027, with a reevaluation next year.

Key Outcomes

• No formal votes were taken; the workshop provided direction for the 2027 budget process.
• For benefits: Staff will proceed with the employee survey and prepare additional data for the October 5 meeting.
• For event funding: Staff will use council feedback to draft budget proposals. Major events: likely moderate increase but not to the full proposed authorizations. Four community events: reduce to up to $2,000 in-kind support per event for 2027, with potential phase-out over time. Council requested detailed cost breakdowns (e.g., barricades, cones) before finalizing amounts.