On the agenda: Crosslake Minutes — DATA CENTER (Sep 11)

COUNCIL BUDGET MEETING
| CITY OF CROSSLAKE
7 FRIDAY, SEPTEMBER 11, 2026
3:30 P.M. - CITY HALL

The Council for the City of Crosslake held a Special Session on Friday, September 11, 2026. The
following Council Members were present: Mayor Jackson Purfeerst, Jayme Knapp, Sandy Farder,
Robin Sylvester and Bob Heales. Also present were City Administrator Lori Conway, Planning &
Zoning Director Jody Grund, Fire Chief Chip Lohmiller, Police Sergeant Tony Marks and Parks
& Recreation Director TJ Graumann. There were two people in the audience.

Mayor Purfeerst called the meeting to order at 3:35 P.M.
The Mayor started with Agenda item #6. (Sandy Farder had stepped away)

MOTION _09SP01-01-26 WAS MADE BY JAYME KNAPP AND SECONDED BY BOB
HEALES TO APPROVE THE SECOND READING OF ORDINANCE AMENDING
CHAPTER 42, NAMING AN UNNAMED ROAD AS FALCON PASS AND ADDING THE
ROAD NAME TO THE MASTER ROAD NAME INDEX AND TO PUBLISH SUMMARY IN
OFFICIAL NEWSPAPER. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-02-26 WAS MADE BY ROBIN SYLVESTER AND SECONDED BY
JAYME KNAPP TO APPROVE THE SECOND READING OF INTERIM ORDINANCE
RELATED TO DATA CENTERS AND APPROVAL TO PUBLISH SUMMARY IN OFFICIAL
NEWSPAPER. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-03-26 WAS MADE BY JAYME KNAPP AND SECONDED BY BOB
HEALES TO APPROVE THE REQUEST FROM PHIL MARTIN FOR PAY REQUEST FROM
ANDERSON BROTHERS CONSTRUCTION FOR SUNRISE BLVD IMPROVEMENTS IN
THE AMOUNT OF $218,642.70. ROBIN HAD A POINT OF DISCUSSION STATING THAT
LESS 5% RETAINAGE THE AMOUNT REQUESTED IS ACTUALLY $207,711.52. JAYME
KNAPP MADE A MOTION AMENDING HIS AMOUNT TO $207,711.52 AND BOB HEALES
SECONDED THAT MOTION. MOTION CARRIED WITH ALL AYES. (Sandy Farder returned
and voted).

MOTION 09SP01-04-26 WAS MADE BY BOB HEALES AND SECONDED BY ROBIN
SYLVESTER TO ACCEPT CASH IN LIEU OF LAND FOR PARK DEDICATION FOR LOT
SPLIT AT 12353 WHITEFISH AVE. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-05-26 WAS MADE BY ROBIN SYLVESTER AND SECONDED BY BOB
HEALES TO ACCEPT CASH IN LIEU OF LAND FOR PARK DEDICATION FOR LOT SPLIT
=SCOTT GALLAWAY. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-06-26 WAS MADE BY SANDY FARDER AND SECONDED BY ROBIN
SYLVESTER TO INCREASE THE ORIGINAL $4/HR_ COMPENSATION TO PARKS:
RECREATION & LIBRARY DIRECTOR FOR TAKING ON __ THE _ ADDED

RESPONSIBILITIES OF PUBLIC WORKS DIRECTOR TO $8/HR_ WITH RETROACTIVE
PAY TO THE FIRST DAY OF RESPONSIBILITIES. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-07-26 WAS MADE BY SANDY FARDER AND SECONDED BY JAYME
KNAPP TO ACCEPT THE RESIGNATION/RETIREMENT OF PAT WEHNER, PUBLIC
WORKS DIRECTOR EFFECTIVE APRIL 2, 2027. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-08-26 WAS MADE BY ROBIN SYLVESTER AND SECONDED BY BOB
HEALES TO ACCEPT THE BID OF $22,595.47 FROM ANCHOR ATTIC AND RETRO
INSULATION FOR THE INSTALLATION OF INSULATION IN THE WALLS AT CITY
HALL AND THE POLICE DEPARTMENT. MOTION CARRIED WITH ALL AYES.

MOTION 09SP01-09-26 BY JAYE KNAPP AND SECONDED BY ROBIN SYLVESTER TO
ACCEPT THE CANNABIS RETAIL BUSINESS REGISTRATION RENEWAL FOR MN
ROOTS. MOTION CARRIED WITH ALL AYES.

CITY ADMINISTRATOR — BUDGET DISCUSSION

City Administrator Lori Conway reviewed the 2027 Budget with all the adjustments recommended
from the last meeting and added health insurance costs and recent Teamsters negotiations, this
increased the Sewer Levy by $10,125 and a general operating need of $4,638,962 or a 10.21%.
Realizing the goal is to still lower, Administrator Conway recommends lowering the trails from
$100,000 to $75,000 and this would bring the levy to 9.79%.

Jayme asked if there were any pending trail projects? TJ Graumann stated that CSAH 3 from
Bridge to East Short. Even though a grant was received the need for soft costs still is present.
Mike O’Connell is working on that. TJ also stated that the city is working with Bolton & Menk
on Trail Feasibility and this will set us up for future 3 to 4 years out costs.

Robin Sylvester asked what 6 months of operating costs would be. Lori stated she is working with
Auditor to define that. How much would our Restricted/Non-Restricted leave us in our budget to
use. Lori estimated $3 million. Sandy asked about increase in services with the licensing we
discussed at the last meeting. Lori stated Char is presenting Monday night. Lori put % of that in
the operating revenues for 2027. Robin asked again about Restricted/Non-Restricted. Discussion
was held and Lori will bring that number to the next budget meeting.

Administrator Conway also stated that the 2024 roads were not bonded for in 2025, that we used
cash and Conway stated that we can do that again for 2026 or 2027. This would save on Bond
Interest and Robin asked for the rate and rates of CDs.

Administrator Conway detailed the 2027 Draft Proposed Budget Summary page and how that
shows on the Levy History sheet of the need for 10.21%. Fire Chief Lohmiller stated we can
remove his request in Capital Outlay of $14,000 for radios as he will receive a grant. Lori showed
that brings it to 10.13%. Jackson asked if the body cameras have any useful life and what is the
cost to get out. Tony stated about $14,000 and they are applying for a grant. It would impact the
budget after awarding as if not currently approved Administrator Conway cannot budget for it.

Jayme Knapp asked about the crosswalk lights, Conway stated only one was budgeted for. Jayme
also asked about the use of Telephone Company funds.

MOTION 09SP01-10-26 WAS MADE BY ROBIN SYLVESTER AND SECONDED BY
JAYME KNAPP TO INCREASE THE HEALTH SAVINGS ACCOUNT CITY
CONTRIBUTION TO_ $3,400 FOR SINGLE AND _ $6,800 FOR FAMILY COVERAGE
EFFECTIVE 1/1/2027. MOTION CARRIED WITH ALL AYES.

Tony Marks discussed briefly the new Squad/Body Cams buyout remainder of contract with
Motorola for 8,280 and start a new contract with Axon $10,793.46=$19,073.46 and Budget for 1st
year 25,500. He mentioned they would lose the bundle discount if they continued to finish out the
contract with Motorola. Axon will release the contract if we don’t have the funds and break the
contract and go elsewhere in the future. He will also check with Sourcewell and see if there are
any grants available.

Jackson would like to bring the capital outlay for Trails to $50,000 and then dedicate $50,000 to
trails from the telephone company. This would bring the budget down to 9.18%.

Jackson asked how much interest is made in combination in one year’s time. Lori estimated that
to be $200,000 and rates are climbing back up at last purchase this month.

City Administrator Conway referenced the Emergency Funds. Council does not want to remove
that line item.

MOTION 09SP01-11-26 WAS MADE BY JACKSON PURFEERST AND SECONDED BY
ROBIN SYLVESTER TO REMOVE THE PUBLIC WORKS STREET SWEEPER FROM THE
PROPOSED CAPITAL OUTLAY BUDGET. MOTION CARRIED WITH ALL AYES.

Jackson asked what the Levy is at with the removal of the Street Sweeper, Administrator stated it
would bring Levy to 7.27%. Jackson asked if we should budget for the county to sweep, I said
right now we assist each other as a wash.

Jackson asked about Xmark Lawnmower, discussion was held. Will leave in budget.

Robin asked about a used truck with plow instead of new price of $65,000. Discussion was held.
TJ will look into used prices. Will leave the $65,000 in for now.

Jackson inquired about the old cedar fence for cemetery. Discussion was held.
Robin asked if we could slim down the road improvement projects, Jackson said let’s leave it on
and come back to discuss or maybe from reserves. Lori showed for demonstration purposes if we

took $100,000 from reserves, we get to 5.63% Levy. Jackson said leave it for now.

Jackson asked if I held employee meetings on Health Insurance. Lori stated she has given two
options for coverage, however, reminded council that the CBA’s require us to provide the current

level of health insurance, Lori also stated that MNPEA has not yet met and there may be some
changes to budget with that outcome.

Jackson said we should remain at the 10% levy and then come down. Jackson asked about the
bridges epoxy expense. Robin asked if we would put a plug number in and then remove it if need
be. Robin also cautioned us setting the Preliminary at 10% and then bringing it down to 5.3%
would cause panic. All agreed.

Jackson scheduled another budget meeting for Monday, September 28, 2026, at 9 a.m.

MOTION 09SP01-12-26 BY SANDY FARDER AND SECONDED BY JAYME KNAPP TO
ADJOURN THE MEETING AT 4:47 P.M. MOTION CARRIED WITH ALL AYES.

Respectfully Submitted,

ne

City Administrator