The Red Wing City Council held a Truth in Taxation Public Hearing on Monday, December 1, 2025, at 6:00 PM to present and discuss the proposed 2026 budget and property tax levy. Administrative Business Director Marshall Hallock and Finance & Accounting Manager Tony Schultz led the presentation, which covered the budget development timeline, proposed levy changes, tax base composition, and impacts on different property classes. The hearing concluded with no public testimony, and the council will adopt the final budget and levy on December 8, 2025. Discussion Items - Presentation on Proposed 2026 Budget and Levy: Marshall Hallock and Tony Schultz reviewed the budget process, noting the proposed levy increase of 3.45% over the 2025 levy ($940,058 increase), which is a decrease of 31% from the preliminary levy approved in September 2025 and a 27.5% reduction in the use of unassigned General Fund balance. The General Fund capital improvement plan totals $3.1 million. - Tax Base and Levy Distribution: Schultz explained that property taxes make up 82% of General Fund revenue. Public utility property accounts for 45% of the taxable net tax capacity (TNTC) and saw an 8.83% increase in valuations. Residential property represents 29% of the tax base with a 1.4% valuation increase. Due to these changes, residential properties will see only a small portion of the levy increase—approximately $11,000 total, or an average of $5 per home—while public utility properties will bear 94% of the increase (about $879,000). Commercial/industrial properties will see a slight decrease ($57,000, or -1.35%). - Council Questions and Clarifications: Councilmember Vicki Jo Lambert asked about sidewalk repairs; Public Works Director Shawn Blaney explained they are funded through public services or street projects. Councilmember Ron Goggin asked about the rental vs. homestead proportion in residential non-homestead properties, and Hallock agreed to provide data later. Councilmember Beth Snyder questioned how all residential properties see a $5–6 increase regardless of home value; Schultz clarified it results from complex calculations including the market value homestead exclusion. Councilmember Kim Beise asked about residential valuation increases; Hallock confirmed residential valuations have risen 80% since 2018, partly due to new construction and market changes. - Historical Levy Comparison: Hallock presented a chart showing that had the city tied its levy to inflation since 2018, the levy would be about $22 million higher cumulatively than what was actually levied, indicating council restraint. Public Comments & Testimony - No members of the public spoke during the public hearing, either in person or virtually. The hearing was opened at 6:51 PM and closed at 6:52 PM by unanimous votes. Key Outcomes - The council took no action on the budget; final adoption is scheduled for December 8, 2025. - The hearing was adjourned at 6:52 PM.
Public Meetings - Red Wing, Minnesota
Public Meetings - Red Wing, MinnesotaThe 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.
The Red Wing City Council held a workshop on Monday, November 24, 2025, from approximately 5:01 to 5:59 p.m. in City Council Chambers at 315 West Fourth Street, Red Wing, Minnesota. All seven council members were present, along with Mayor Gary Iocco, City Attorney Zachary Cronen, and city staff. The workshop covered a legal refresher on the Open Meeting Law and ex parte communications, potential updates to the Council's Rules of Order and Procedures, and a proposed 2026 City Council meeting schedule. Discussion Items Open Meeting Law and Ex Parte Communications - City Attorney Zachary Cronen reviewed Minnesota Statutes Chapter 13D, including the definition of a meeting, serial meetings, email/text risks, committee meetings, social and chance gatherings, special and emergency meetings, closed meetings, and ex parte communications. - Council members asked about attending invite-only events and public informational events where a quorum may be present. Cronen advised that truly social gatherings can be acceptable but warned that discussing city business or having only council members present can raise concerns; posting a notice is the safest practice. - Becky Norton asked about committees without decision-making authority and whether they must remain below a quorum. Cronen confirmed they should, noting that a quorum of council members at a committee can create open meeting law concerns even without delegated decision-making authority. - Donald Kliewer asked whether Mayor Iocco's presence affects quorum calculations; Cronen confirmed it does. - Cronen said communications intended for the council should go through the City Administrator, and he advised directing constituent questions about specific projects to staff rather than discussing quasi-judicial matters such as conditional use permits outside public meetings. - Vicki Jo Lambert asked about the difference between a developer meeting council members individually and a constituent offering general comments. Cronen said individual developer meetings should generally be avoided when a pending application exists, while general constituent feedback is acceptable until a quasi-judicial application is active. - Becky Norton noted she had anxiety because of past investigations; Cronen said he wanted to do a deeper review before giving more detailed guidance. Council Administrator Chris Heineman noted that many cities post notices when a quorum may attend without turning the event into a public meeting. Council Rules of Order and Procedures - Public Information and Engagement Officer Michelle Leise reviewed items council members had previously flagged: meeting schedules and virtual meetings, order of business, creating and amending the agenda, removing items from the consent agenda, public comment, and workshops. - Becky Norton questioned formalizing the consent agenda removal process, saying an informal process already exists; Leise said the item could be removed if the council was comfortable. - Kim Beise asked to discuss whether council liaisons on boards and commissions are necessary. - Mayor Iocco raised the total number of boards and commissions and policies related to them; Leise noted some council rules are tied into the boards and commissions policy booklet. Proposed 2026 City Council Meeting Schedule - Council Administrator Chris Heineman proposed adding monthly workshops before the second regular meeting of the month and quarterly topic-specific sessions or tours, with some meetings starting at 7:00 p.m. to allow 75-minute workshops. - Janie Farrar supported the draft schedule. Ron Goggin asked whether quarterly meetings would be budget workshops; Heineman said they could be budget workshops or tours. Goggin said he preferred stacking meetings rather than adding additional meeting dates. - Kim Beise accepted 7:00 p.m. starts as long as meetings end at a reasonable time. Becky Norton supported consistency for the public but expressed concern that the number of workshops could feel excessive; she also asked staff to limit the number of items per workshop. - Vicki Jo Lambert discouraged inconsistent meeting times and said workshops immediately before council meetings often feel rushed. Mayor Iocco said workshops would likely make regular council meetings shorter by allowing earlier discussion. - Heineman noted staff already had about 10 workshop topics waiting and that workshops could be canceled when not needed. Key Outcomes - No formal votes were taken at the workshop. - Council members were asked to email additional comments on Rules of Order and the proposed meeting schedule to Heineman or Leise. - The proposed 2026 meeting schedule will be brought back for adoption at the December 8, 2025, City Council meeting. - City Attorney Cronen will do additional research on quorum-attendance notices before providing further guidance.
The Red Wing City Council held its regular meeting on Monday, November 10, 2025, at 6:00 PM in the City Council Chambers. The meeting adjourned at 8:27 PM and covered parking ordinance amendments, fee schedule adoption, a liquor license for Chatter Nook Bistro, and planning for the CPKC Holiday Train event among other routine business. Council President Janie Farrar presided with all seven council members present, along with Mayor Gary Iocco and city staff. Public Comments & Testimony - Tim Dehmer, Cannon Falls, addressed an incident involving police and asked whom to contact regarding ADA requirements for service animals. He was directed to follow up with the Public Information Officer. - Amber Plank, Ward 4, spoke about predatory housing practices, highlighting a property purchased for $84,000 and listed for rent at $1,700/month without improvements. She urged transparency and provided tools for renters to research property ownership and pricing. - Amber Plank, in a second segment, raised concerns about River Bluff School district, including a bus driver allegedly calling children "morons," a teacher reportedly telling a student to "get the F out of my classroom," the superintendent allegedly ignoring a parent's attempts to communicate, and a bus company refusing to pick up a child after the student said a grandparent would arrive. Consent Calendar - Bills totaling $809,359.39 (Warrant 125013–125221) approved. - Minutes from the October 27, 2025, Workshop and Regular Meeting approved. - One-day temporary on-sale liquor license for Downtown Main Street for the Holiday Stroll on November 28, 2025, approved. - Authorized staff to apply for a $3,000 Minnesota Department of Health grant for fluoride pump replacement. Application deadline is November 24, 2025. - Approved letter of support for Goodhue County's LRIP application for a roundabout at CSAH 1 and CSAH 66 (Bench Street and Pioneer Road), with design in 2026 and construction in 2027. - Approved Resolution No. 8131 authorizing a MnDOT grant agreement for the Airfield Pavement Maintenance Project at Red Wing Regional Airport ($153,401 total; 70% MnDOT, 30% city share = $46,020) and entered into a contract with Struck & Irwin Paving. Items Pulled from Consent Calendar for Discussion - Chatter Nook Bistro Liquor License (Item 8C): Pulled by Council Member Snyder due to background check concerns involving a 2024 misdemeanor. City Attorney Mace explained the Council must determine if the applicant poses a threat under state and city disqualification standards. Council Member Norton noted the offense did not meet the five-year disqualification threshold. Council President Farrar stated she "would hate to hurt a business based on the actions of one individual." Approved 7-0. - Bobbie Christen Appointment to Human Rights Commission (Item 8E): Pulled by Council Member Norton to highlight volunteer service on boards and commissions. Mayor Iocco commented he spoke with Christen and believes she "will be a fabulous addition." Approved 7-0. - CPKC Holiday Train PUPP Application (Item 8I): Pulled by Council Member Lambert. Mayor Iocco detailed the event on December 12, 2025, at Bay Point Park with festivities from 5:00 PM, the train arriving at 7:15 PM for a 30-minute stop with live entertainment, a $1,500 food shelf donation, food trucks, and a goal to raise $10,000. Two Hiawatha Valley Transit bus routes and the Red Wing Trolley will provide transportation from the Studebaker, LaGrange, and Plaza parking ramps. Jackson Street will be closed during the event. Approved 7-0. Discussion Items Parking Ordinance Amendments and Policy Updates (Item 9A) Community Development Director Kyle Klatt presented the introduction of Ordinance No. 228 to repeal and replace Chapter 9 of the City Code and an amendment to the downtown Parking Policy adopted May 27, 2025. Key changes include: exempting parking ramps from the 300-foot rule (still applies to on-street parking), replacing 20-hour parking limits with clear overnight standards requiring a permit between 2 AM and 6 AM, reducing enforcement hours from 8 AM–8 PM to 8 AM–5 PM, creating employee overnight parking permits initially free, allowing parking in ramps during declared snow emergencies without a permit, formalizing a Parking Committee, and creating a petition process for ADA parking designation. Police Chief Sather reported that the T2 parking management system was implemented July 1, 2025. After a two-week warning period, 190 parking citations have been issued, averaging about 48 per month, compared to approximately 250 citations in all of last year — three to four times the previous rate. He stated they are "seeing noticeable improvement in parking behavior" and that most complaints arise from the 300-foot rule. Council discussion addressed: the $20 monthly ramp fee was a typo and should be $50; the LaGrange ramp annual permit is reduced from $500 to $400 to incentivize use of a lower-demand facility; permits are license-plate based; resident permits are $500 annually based on comparison to private market rates of approximately $100/month; and the permit system will be reviewed annually. Both motions passed 7-0. Fee Schedule Ordinance No. 229 (Item 9B) Two votes were taken on the fee schedule introduction: - A motion by Council Member Norton to exclude the 19% PUP administrative fee pending further discussion, set the employee permit fee at $50, and correct the monthly ramp fee to $50 failed 2-5, with Council Members Kliewer, Goggin, Farrar, Snyder, and Beise dissenting. - A motion by Council Member Kliewer to approve as printed with the $20 to $50 monthly correction passed 5-2, with Council Members Norton and Lambert dissenting. Key concerns raised during discussion: rental inspection/reinspection fees of $50 may be too low to ensure compliance; the 19% PUP administrative fee was added without input from community organizations and should be revisited; the perpetual flowers program lacks a formal cap despite prior workshop discussion; Council Member Norton expressed concern that $10 for an employee permit compared to $500 for a resident permit is inequitable; Mayor Iocco opposed charging employees for parking; Council Member Goggin stated the $50 employee fee would create more administrative burden than benefit. Mayor Iocco's Request to Use City Logo (Item 9C) Mayor Iocco requested permission to use the City logo for a youth suicide prevention program (Hope Squad), now in over 2,600 schools nationally. He noted the initiative is non-political, non-religious, and costs the city nothing. Council Member Norton expressed respect for the initiative and emphasized the importance of following proper process "because it is easier to address the correct process now under these circumstances, rather than later if it is used for something unintended." Approved 7-0. Port Authority Update Community Development Director Klatt reported: the Port Authority approved executing a purchase agreement with the Red Wing School District to acquire the former Jefferson School property for $1, with due diligence including historic designation evaluation to qualify for historic tax credits. The School Board also approved the agreement that evening. Two grants were approved through the Sign and Facade Program. The Port adopted a final tax levy of $560,000 (below the maximum) and a budget of $697,000. The Fleshman project is expected to move toward demolition by year-end. The Central Research property demolition will go to public bid. The Little River Bulkhead and Red Wing Grain Mooring projects are advancing. Council Member Snyder asked whether the School District will continue to pay approximately $70,000 in annual maintenance costs through closing in July; Director Klatt confirmed yes and noted the Port has contingency clauses if the building is not maintained. Council Liaison Reports - Council Member Snyder: HRA finalized its budget; Housing Summit was a positive first step. - Council Member Norton: Amos Owens Award recognition will be at the Human Rights Commission meeting on November 20. - Council Member Goggin: Planning Commission approved a variance request for the Siewert building to deviate from B3 district design standards since the addition is in the rear and mostly covered by existing buildings. - Mayor Iocco: Veterans program was "wonderful"; attended Rise Up cohort graduation focused on teaching parenting skills; praised the Housing Summit. Key Outcomes - Ordinance No. 228 (Parking Code): Introduced 7-0. Will return after state citation review (approximately three months). - Parking Policy Amendment: Approved 7-0. - Ordinance No. 229 (Fee Schedule): Introduced 5-2 with monthly ramp fee corrected to $50. Council expressed intent to revisit the 19% PUP administrative fee, rental inspection fees, and employee parking fees in 2026. - City Logo Use: Approved for Mayor Iocco's suicide prevention program 7-0. - Jefferson School Property: Due diligence process initiated by Port Authority with School District; closing targeted for July 2026. - Budget Timeline: Truth in Taxation meeting December 1; final budget and levy approval December 8. - Service Animal Information: Chief Sather will draft information on ADA requirements for service animals for a future meeting. - Performance Pay: Council Member Norton expressed concern about reducing performance pay by $200,000 (0.7% of the levy, approximately $18/year per average taxpayer) and requested metrics. Council Member Lambert questioned why the Council was discussing performance pay when the City Administrator may have authority to terminate the program.
On Monday, November 3, 2025, the Red Wing City Council held a budget workshop in City Council Chambers. The meeting was called to order at 5:01 p.m. and adjourned at 8:05 p.m. Council President Janie Farrar presided. Council members present included Vicki Jo Lambert, Beth Snyder, Kim Beise, Ron Goggin, and Donald Kliewer; Becky Norton was excused. Mayor Gary Iocco and city staff also attended. The workshop focused on the Wastewater Treatment Facility Plan and the proposed 2026 levy and budget. Wastewater Treatment Facility Plan - Utility staff and Bolton and Menk consultants presented a 20-year wastewater facility plan covering current plant condition, future needs, permitting requirements, alternatives assessment, funding opportunities, and a proposed improvement schedule. - The original plant was built in 1960 and is approximately 65 years old. The “do nothing” option was described as not viable due to aging infrastructure and anticipated future permit limits, including a likely future nitrogen limit. - The recommended alternative is Alternative 5, a biological aerated filter (BAF). Estimated capital cost is $142 million in 2025 dollars, including a 20% contingency and soft costs. The alternative was selected for its smaller footprint, expandability, and operational flexibility on the constrained four-acre site between the Mississippi River and a railroad. - The current average monthly sewer bill is $48.00 per the 2025 fee schedule. A 6% increase is proposed for 2026, and a rate study is underway. Consultant Pichelmann noted Red Wing’s rates are relatively low compared with other cities. - Funding opportunities identified include up to $12 million from the Point Source Implementation Grant and up to $10 million from the Water Infrastructure Fund, for a combined potential of $22 million, plus possible special appropriations bond requests. Bolton and Menk stated they have a dedicated funding team and a lobbyist to assist. - The draft facility plan was completed in October 2025. A public hearing and council resolution are expected between December 2025 and February 2026, with submission to the Minnesota Pollution Control Agency by March 6, 2026. Construction could begin as early as 2028 with completion around 2031. - Council members asked about alternative scoring, nitrogen removal, construction sequencing, expansion capacity, grant success rates, and the $142 million turnkey estimate. Mayor Iocco asked about design costs, which were not yet determined. Proposed 2026 Levy and Budget - Finance Manager Tony Schultz reported that with administrative changes, the proposed levy stood at a 3.25% increase and the fund balance draw had been reduced to just below $1 million. Based on workshop decisions, staff said it was reasonable to consider a slight reduction toward 3% and a further reduction in the fund balance draw. - Staff requested direction on several vacant positions and budget items: - Engineering Field Tech I: Engineering Director Regnier requested funding for this vacant position, citing project needs and consultant cost savings. Council member positions varied: Ron Goggin opposed; Janie Farrar was hesitant, preferring specific numbers for 2027; Beth Snyder, Kim Beise, Vicki Jo Lambert, and Donald Kliewer expressed support. - CIP Manager reclassification: Staff proposed replacing the vacant CIP Manager position with a lower-level accounting position to provide capacity, cross-training, and grant support. Some council members supported this option with conditions, while others requested comparative data from other cities before deciding. No consensus was reached. - Green fund e-bike: Staff proposed using $4,900 from the green fund for a police department e-bike. The green fund has $115,000 and no planned contributions this year or next. Council members discussed using green funds for invasive species prescribed burns and requested a list of eligible uses. - Contingency: Staff recommended lowering the council contingency from $250,000 to $200,000, consistent with recent usage. - Invasive weed control: Postponing $10,000 in Barn Bluff invasive species control was discussed, pending a potential grant. - Fire standards of coverage study: Chief Warner proposed an in-house option saving $35,000 from the preliminary budget. - Minnesota Paid Family and Medical Leave (PFML): The council reached consensus to use the MetLife private option at the half-funded level (employer pays half, employee pays half). Finance staff noted the employee cost would be approximately 0.0041% of annual wages. - Administrative changes: Staff presented various operating and CIP adjustments, including increased police revenue estimates, additional police uniforms, winter planners, and reclassified CIP items. Engineering Director Regnier noted the railroad crossing quiet zone scope could be reduced through road channelization instead of a quad gate system, likely saving significant costs. - Performance pay program: Discussion centered on the $308,000 annual budget. Several council members criticized the lack of measurable metrics. Janie Farrar proposed budgeting $100,000 for a hybrid system while developing a new program; Beth Snyder and Mayor Iocco supported $100,000. Ron Goggin suggested $154,000; Donald Kliewer and Kim Beise preferred $0; Vicki Jo Lambert supported the full $308,000 and expressed frustration. No consensus was reached, and staff requested clearer direction. - City memberships: Staff reviewed memberships including the League of Minnesota Cities, Coalition of Greater Minnesota Cities, Coalition of Utility Cities, Nuclear Waste Strategy Coalition, and Southeastern Minnesota League of Municipalities. Annual costs exceed $100,000. Council members expressed differing views: Janie Farrar and Donald Kliewer questioned the value, Vicki Jo Lambert was not ready to drop memberships, Kim Beise saw value in all, Beth Snyder questioned the Coalition of Utility Cities, and Ron Goggin preferred waiting for relicensing clarity before dropping the utility coalition. No final decision was made. Public Comments & Testimony - No public comment was offered during the workshop. Key Outcomes - Consensus to support the MetLife private option at half funding for PFML. - Staff was directed to bring updated levy and budget figures to the November 24, 2025 council meeting, reflecting the night’s discussions and fund balance options. - No formal votes were taken during the workshop; decisions will be folded into the 2026 budget and levy process.
The Red Wing City Council held its regular meeting on October 27, 2025, at 6:04 PM in the City Council Chambers. All council members were present. The meeting included presentations on stormwater management and the Ikata student exchange program, public comment from one resident, approval of the consent agenda with one item pulled for separate discussion, and votes on a tax abatement bond for the demolition of the former Central Research Building and amendments to the city's telework policy. The meeting adjourned at 7:50 PM. Presentations - Annual Stormwater Presentation: Engineering Director Zach Regnier presented the city's MS4 permit compliance for 2024, covering public education, illicit discharge detection, construction runoff control, and pollution prevention. He highlighted that the city collected over 1,200 cubic yards of debris from street sweeping (over 1,000 hours) and 4,600 cubic yards of waste from the city waste campus. The current permit expires at the end of 2025, and a new e-permitting system is expected from the state. Council Member Vicki Jo Lambert inquired about the acronym BMP, and Director Regnier explained it stands for "best management practices." - Ikata Student Exchange Program Presentation: Ashlyn Werner, a pediatric speech and language pathologist, introduced four Red Wing High School students who participated in the 2025 Ikata Student Exchange, organized by the Red Wing Sister Cities Commission. Students Nisha Yanette Catarino Santiago, Audrey Larson, Bella Paradis, and Marek Sparby shared their experiences visiting Tokyo, Kyoto, Hiroshima, and Ikata. They described cultural activities, local cuisine, and interactions with host families. All expressed gratitude to the City Council and Sister Cities Commission for the opportunity. Consent Calendar The consent agenda included routine approvals and was approved unanimously (7-0) after one item was pulled for discussion: - Item 8.I (Agreement with Kavira for Direct Primary Care for Employees) was pulled by Council Member Becky Norton for clarification. After confirmation that the agreement covers all employees (on ICHRA and the self-insured plan) starting January 1, 2026, the council approved it unanimously (7-0). All other consent items were approved as a block: bills totaling $2,128,912.54 (warrants 124792-125012), meeting minutes, finance report, airport hangar lease renewals (four leases and two transfers), a minor subdivision and final plat (Tyler Station Replat 2), prosecuting services agreement with Goodhue County for 2026-2027, waiver of tort liability limits for League of Minnesota Cities Insurance Trust (Resolution No. 8130), and the private use of public property application for the 2025 Holiday Stroll (scheduled for November 28, 2025). Public Comments & Testimony - Amber Plank (Ward 4, Red Wing) spoke during two three-minute segments. In her first segment, she expressed disappointment with the nomination process for the Amos Owen Award, criticizing a lack of transparency and insufficient discussion of human rights issues by the Human Rights Commission (HRC). She also questioned why a backlog of HRC applications had not been processed. In her second segment, she raised concerns about racism in Red Wing schools, describing an incident where her daughter was confused with another Black student and reporting that her daughter's knee pain was dismissed by school staff, only to later require surgery for septic arthritis. She also reported that students in her daughter's 504-plan safe space used racial slurs, and criticized the district's response. Discussion Items - 9A. Tax Abatement Bond for DEED Demolition Loan (Former Central Research Building): Community Development Director Kyle Klatt presented the proposal to use property tax abatement as a financing mechanism for a $232,000 loan from the Minnesota Department of Employment and Economic Development (DEED) to demolish the former Central Research Building at 205 Highway 19. The loan has a 2% annual interest rate, payments begin in February 2028 with annual principal payments of approximately $17,800, and up to half the loan ($116,000) may be forgiven upon approval of a development plan for the site. The abatement would apply to a parcel owned by CUSI Group on Moundview Drive, using only the city's portion of property tax revenue without affecting the owner's tax liability. The council held a public hearing at 7:21 PM; no public testimony was offered. The council then adopted Resolution No. 8133 approving property tax abatements (7-0) and Resolution No. 8132 accepting the DEED bond offer and authorizing the loan agreement (7-0). Council Member Ron Goggin noted that although he had opposed the direction for the property, he considered this the most cost-effective way to proceed. - 9B. Amendments to the City's Telework Policy: Council Administrator Chris Heineman presented updates to the existing telework policy, developed post-COVID, to formalize and standardize remote work arrangements. The policy does not eliminate telework but establishes parameters and requires a vetted remote work plan. Council Members Becky Norton and Vicki Jo Lambert discussed the impact on specific positions, with Administrator Heineman confirming that most city positions are front-facing but that the policy will be applied case-by-case. The motion to adopt the amendments passed unanimously (7-0). Key Outcomes - Votes: All votes were 7-0 in favor. Key resolutions included: approval of the consent agenda (minus 8.I), approval of the Kavira direct primary care agreement, adoption of Resolution No. 8133 (property tax abatements) and Resolution No. 8132 (bond issuance for DEED loan), and adoption of the telework policy amendments. - Directives and Next Steps: - Staff will look into the baseball fundraiser request and possibly bring it back as an agenda item. - A presentation on Open Meeting Law best practices will be scheduled; Council President Janie Farrar expressed interest in holding the discussion before the annual organizational meeting in January to facilitate policy/procedure review. - Administrator Heineman reminded the council of the Red Wing Housing Summit on October 29, 2025, and the upcoming budget workshop on November 3, 2025, which will also include a presentation from Bolton & Menk on the wastewater treatment plant study. - Liaison Reports and Council Comments: - Council Member Ron Goggin reported the Planning Commission proposed an ordinance to reorganize the non-residential zoning code into a table format. - Council Member Beth Snyder noted the HRA has increased funds in the Affordable Housing Fund and highlighted a successful Sheldon Theatre fundraiser. - Council Member Vicki Jo Lambert announced that the Sister Cities Commission has extended the deadline for adult chaperone applications for the next Japan trip. - Mayor Gary Iocco welcomed the last boat of the season (estimated $800,000 revenue), commended the Police Department for resolving a doxing incident, and reminded of the Veterans Celebration on November 7, 2025.
The Red Wing City Council held a workshop on Monday, October 27, 2025, from 5:00 PM to 5:56 PM, to present the summary of the six-month performance evaluation of City Administrator Chris Heineman and to discuss new full-time employee (FTE) requests and vacant positions for the 2026 levy and budget process. The council heard presentations from department heads and provided directional feedback to staff for the upcoming budget workshop on November 3. City Council Administrator's Evaluation Summary Council President Janie Farrar read the summary of the closed-session performance evaluation held on October 13, 2025. The council commended Administrator Heineman for his professionalism, fiscal management, policy execution, communication, operational efficiencies, budget management, transparency, accountability, innovation, and responsiveness. Areas for improvement included balancing new ideas with the city's culture and strengthening collaboration. The council expressed overall confidence in his leadership. New Full-Time Employee (FTE) Requests Administrative Business Director Marshall Hallock noted that staff used conservative cost estimates assuming family health plans. The council discussed the following positions: Sheldon Theatre - Lead Production Technician: Already approved and filled as of September 2025. Director Shantel Dow reported a 46% increase in event volume from 2024 to 2025, with a projected 70% increase by 2026. The levy impact is 0.03%. The position is funded through the theatre's revenue, not the general fund. - Youth Theatre Arts Director: New full-time position funded by a grant from the Red Wing Area Fund covering two years of salary and benefits, with a possible two-year extension. The department plans to become self-sustaining by year five. Director Dow stated the applicant would be informed of the grant-funded nature. Council positions: Mayor Gary Iocco and council members expressed general support for both positions, provided they remain self-sustaining and do not burden the general fund. Library - Youth Services Assistant: Move from 29 hours per week to full-time. Library Director Dan Brower cited a 40% increase in children's program participation, with over 200 children completing the summer reading program, and event attendance rising from 2,800 to 3,100. The position supports youth programming and retains an employee who used the city's tuition reimbursement. - Outreach Library Assistant: New 20-hour per week position to handle community outreach, festivals, book delivery, social media, and library lockers. The ideal candidate would be bilingual to serve the Spanish-speaking community. Council positions: Mayor Iocco opposed both. Vicki Jo Lambert supported both. Kim Beise opposed both. Beth Snyder supported the Youth Services Assistant but was unsure about the Outreach position. Janie Farrar supported the Youth Services Assistant if it fits within the levy. Donald Kliewer opposed both. Becky Norton supported the Youth Services Assistant and hoped to add the Outreach position later. Ron Goggin opposed both due to budget constraints. Fire Department Fire Chief Mike Warner explained the department's staffing model of three shifts of nine firefighter-paramedics, but frequent vacancies due to injuries, mental health leave, FMLA, and other leaves have led to high overtime—approximately $500,000 in 2024 across both funds. He requested three additional FTEs, but the discussion centered on two. Chief Warner noted that hiring FTEs would reduce overtime, alleviate burnout, and help comply with the upcoming Minnesota Family Leave Act. The levy impact per FTE is approximately 0.25% of the total city levy. Council positions: Janie Farrar initially unsupportive but later supported one FTE. Beth Snyder was on the fence but later supported one. Kim Beise supported two. Vicki Jo Lambert wanted further exploration of creative staffing. Ron Goggin was reluctant unless overtime savings fully offset costs. Becky Norton supported two as the most efficient solution. Donald Kliewer questioned alternative staffing. Public Works Public Works Director Shawn Blaney introduced two positions: - Utilities Apprentice: Entry-level position rotating through water and wastewater divisions while earning licenses. No general fund impact. - Electrician: Position to maintain complex automated systems, reducing reliance on outside contractors. Council positions: Mayor Iocco and Vicki Jo Lambert supported both. Kim Beise supported both but had concerns about electrician pay. Janie Farrar acknowledged the need but questioned levy impact. Donald Kliewer supported the apprentice but not the electrician (open for three years). Becky Norton encouraged outreach to underrepresented populations. Ron Goggin supported the apprentice but not the electrician. Other Positions - Engineering Field Tech: Entry-level; previous tech left. - CIP Manager Accountant: Council requested more data on grant recovery benefits. Council positions: Ron Goggin, Janie Farrar, Donald Kliewer opposed both. Becky Norton hesitated pending more information. Beth Snyder supported the field tech. Kim Beise supported two firefighters and the field tech, opposed the CIP Manager Accountant. Vicki Jo Lambert supported the CIP Manager Accountant, opposed the field tech. Mayor Iocco opposed both. Key Outcomes No formal votes were taken; the council gave direction for the November 3 budget workshop. Staff will prepare additional analysis on overtime savings for fire positions, grant recovery for the CIP Manager Accountant, and update the council on levy goals. - Sheldon Theatre: Both positions have support to proceed. - Library: Likely only the Youth Services Assistant will move forward, contingent on the levy. - Fire Department: Possible support for one FTE; two remain uncertain pending cost-benefit analysis. - Public Works Utilities Apprentice: Broad support. - Public Works Electrician: Insufficient support to move forward. - Engineering Field Tech: Mixed support; likely not a priority. - CIP Manager Accountant: Insufficient support pending more information. Staff will return with detailed financial analysis to help the council finalize positions for the 2026 budget.