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HomeMy WebLinkAbout09.15.25 Work Session CITY OF ST. JOSEPH www.cityofstjoseph.com “A safe and welcoming community valuing open communication and civic trust while maintaining the enduring spirit of small-town life.” 75 Callaway Street East | Saint Joseph, Minnesota 56374 Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342 St. Joseph City Council Work Session September 15th, 2025 5:00 PM 1. Chicken Ordinance 2. 2026 Budget 3. Adjourn STAFF MEMO September 15th City Council Work Session Item 1 – Chicken Ordinance Draft ACTION REQUESTED Discussion on the drafted ordinance along with recommendations/suggestions on what to include or not include in the ordinance. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Planning Commission reviewed, tweaked, and spent several months discussing drafted ordinance language. The attached ordinance was recommended for approval by the Planning Commission at their September 8th meeting. A public hearing was also conducted at this meeting where one resident spoke in favor of the drafted ordinance. PREVIOUS COUNCIL ACTION Council directed staff to work with the Planning Commission on researching and drafting of an ordinance at the March 17th Work Session. REFERENCE AND BACKGROUND After several months of discussion at Planning Commission staff are bringing forth recommendation of what an ordinance to allow chickens could look like. Staff would like feedback, input, and direction from Council on the draft with the hopes of bringing forth an ordinance amendment for consideration to Council in October. Highlights of the draft include: • Limitations on the quantity of chickens based on lot size. • No roosters, adult male chickens, or crowing hens. • One-time permit requirement. • Restrictions tied to the containment area the chickens are kept in (four-sided, rear yard only, aesthetics of building) Including the coop shall be kept in good repair, built with weather resistant materials and provides adequate shelter. Runs must not be constructed out of unfinished, chipped, decayed, or other material that can pose a safety risk. • prohibiting slaughter or breeding. • prohibiting the sale of eggs. • waste removal and ensuring it is kept in leak proof containers. • Zoning – allowed in R-1, R-1 PUD, and R-4. • Setback restrictions for coop and run areas to match accessory structures setbacks and coop and run located closer to applicants house then neighboring houses. The goal of this Work Session item is to help determine final recommendations. Staff would like to bring these recommendations and final draft to Council in October. BUDGET IMPACT: None. SUPPORTING DATA/ATTACHMENTS: Drafted Ordinance Sample Ordinances and links • Sample Ordinances from: o Buffalo - https://www.ci.buffalo.mn.us/DocumentCenter/View/3209/Chicken-Ordinance- PDF o Blaine - https://blainemn.gov/2997/Chicken-Permit o Golden Valley - https://www.goldenvalleymn.gov/288/Keeping-Of-Chickens o Brooklyn Center - https://www.brooklyncentermn.gov/government/departments/community- development/housing-and-home-ownership/chickens o Maplewood - https://maplewoodmn.gov/1012/Poultry-Ordinance o Delano - https://www.delanomn.gov/353/Backyard-Chickens o Rice - https://www.ricemn.us/wp-content/uploads/2019/07/chicken_ordinance.pdf o Big Lake- https://biglakemn.org/DocumentCenter/View/4729/Chicken-Brochure--Final o Belle Plaine - https://www.belleplainemn.gov/faq.aspx?TID=26 o Mora - https://www.ci.mora.mn.us/community-development/pages/chickens o Sartell – see attached Surrounding cities requirements: • Sartell – allowed in R-1 but lot must be 1 acre or larger and host of other requirements including limit of 4 hen chickens, • St. Cloud – presented an amendment in 2024 to allow but amendment was not passed • Waite Park – only allowed in Agricultural and Rural Residential – matches our existing ordinance • Sauk Rapids – not allowed…some residents interested but nothing has gained traction for ord amendment o Sartell – ORDINANCE PC2025-005 AN ORDINANCE AMENDING ORDINANCE 1004 New language is underlined and in red font. Language to be eliminated is shown as strikethrough. The City Council for the City of St. Joseph, HEREBY ORDAINS that City Code Section 1004 is hereby amended as follows: 1004 Ordinance Section 1004.02 Subd. 1 ORDINANCE 1004 LICENSING AND REGULATION OF ANIMALS .......................... 1004-2 Section 1004.01: DEFINITIONS.................................................................................. 1004-1 Section 1004.02: MAINTENANCE OF ANIMALS .................................................... 1004-2 Section 1004.03: ANIMAL IDENTIFICATION ......................................................... 1004-3 Section 1004.04: MULTIPLE ANIMAL PERMITS .................................................... 1004-3 Section 1004.05: KEEPING OR HARBORING PROHIBITED ................................. 1004-4 Section 1004.06: ANIMALS AT LARGE PROHIBITED ........................................... 1004-4 Section 1004.07: ABANDOMENT OF ANIMALS PROHIBITED ............................ 1004-4 Section 1004.08: RABIES CONTROL ........................................................................ 1004-4 Section 1004.09: NUISANCE NOISE, PROPERTY DAMAGE, REMOVAL OF ANIMAL EXCREMENT .............................................................................................. 1004-4 Section 1004.10: IMPOUNDMENT ............................................................................ 1004-5 Section 1004.11: REDEMPTION ................................................................................. 1004-5 Section 1004.12: DANGEROUS AND POTENTIALLY DANGEROUS ANIMALS1004-5 Section 1004.13: POTENTIALLY DANGEROUS ANIMALS ................................. 1004-6 Section 1004.14: DANGEROUS ANIMALS............................................................... 1004-8 Section 1004.16: PENALTY ...................................................................................... 1004-10 ORDINANCE 1004 LICENSING AND REGULATION OF ANIMALS Section 1004.01: DEFINITIONS. As used in this Ordinance, unless the context otherwise indicates, the following words shall be defined to mean: a. Animal Control Officer. Any city officer or employee designated to enforce any portion of this Ordinance. b. Animal Shelter. Any premises designated by the City for the purpose of impounding or caring for animals held under the authority of this Ordinance. c. At Large. Off the premises of the owner and not under the control of the owner, or other competent person, by leash not exceeding eight (8) feet in length. d. Dangerous Animal. An animal that has: 1. Without provocation, inflicted substantial bodily harm on a human being on public or private property; or 2. Killed or caused substantial bodily harm to a domestic animal without provocation while off the owner’s property; or 3. Been found to be potentially dangerous, and after the owner has noticed that the animal is potentially dangerous, the animal aggressively bites, attacks, or endangers the safety of humans or domestic animals; or 4. Been declared a Dangerous Dog pursuant to Minnesota Statutes by the animal control authority or another jurisdiction e. Domestic Animal. Various non-venomous animals domesticated so as to live and breed in a tame condition. Domestic animals are to be considered those specifically allowed by this Ordinance. f. Kennel. Any place, building, tract of land, where three or more dogs are kept and maintained. A Kennel does not include a veterinarian licensed to practice in the State of Minnesota. A Kennel does not include an animal shelter owned and operated by any political subdivision of the State or providing animal sheltering services under contract with any political subdivision of the State. A kennel does not include those that obtain a Multiple Animal Permit to foster up to four animals in partnership with a City designated animal shelter. g. Non-Domestic Animal. Those animals considered to be naturally wild and not naturally trained or domesticated; or which are considered to be farm animals or inherently dangerous to the health, safety, and welfare of people. Non-domestic animals are those specifically prohibited by this Ordinance. h. Owner. Any person, keeper, custodian, or legal entity owning, harboring, or keeping an animal, whether temporary or permanent. i. Potentially Dangerous Animal. An animal which has: 1. When unprovoked, bitten a human or a domestic animal on public or private property; or 2. When unprovoked, chased or approached a person, including a person on a bicycle, upon the streets, sidewalks, or any public or private property, other than the animal owner’s property, in an apparent attitude of attack; or 3. A known history, tendency, or disposition to attack while unprovoked, causing injury or otherwise threatening the safety of humans or domestic animals; or 4. Been declared a Potentially Dangerous dog pursuant to Minnesota Statute by the animal control authority of another jurisdiction j. Premises. Any building, structure, shelter or land whereupon animals are kept or confined. k. Provocation. An act that an adult could reasonably expect may cause an animal to attack or bite. l. Substantial Bodily Harm. Bodily injury that involves a temporary, but substantial disfigurement, or which causes a temporary but substantial loss or impairment of the function of any bodily member or organ, or which causes a fracture of any bodily member. m. Unprovoked. The condition in which the animal is not purposely agitated or disturbed. It is a rebuttable presumption that any attack on a child fourteen years of age or younger for which a reasonable person connotes as intent to inflict bodily harm will be considered to be unprovoked unless the child is engaged in the commission of a crime or illegal activity, including activities classified under Minnesota Statutes as cruelty to animals. Section 1004.02: MAINTENANCE OF ANIMALS. It shall be unlawful for any person to own or harbor an animal within the corporate limits of the City unless specifically permitted by this Ordinance or by special permit. Subd. 1: Permitted Animals. Except for kennels licensed under this Ordinance and/or animal owners who have been issued a Multiple Animal Permit as designated in this Ordinance, the following animals shall be permitted within the City: a) Up to two (2) domestic dogs over three months old per household. b) Up to three (3) domestic cats over three months old per household. c) Up to fifteen (15) domestic cats or dogs under three months old per household. d) Fish maintained in an aquarium. e) Hamsters, gerbils, guinea pigs or lab rats maintained in an aquarium or cage located within a building. f) Nonpoisonous and nondangerous snakes, lizards or other reptiles, no greater than 16" in length, and maintained in an aquarium or cage located within a building. g) Nonpoisonous insects maintained in an aquarium or cage located within a building. h) Birds purchased from a licensed pet seller and maintained in a bird cage located within a building. I ) Chickens subject to the following requirements: 1. Chickens may be kept on properties zoned R-1, R-1 PUD, and R-4 provided the following requirements are adhered to: 2. Maximum number of chickens allowed Lot Size Number of chickens .50 acre or smaller 4 .51 acres – 1 acre 6 1.1-5 acres 8 5.1-10 acres 10 10.1 acres or greater No limit 3. Coop A. Coop must be fully enclosed on four sides, be in the rear yard, and be located closer to the property owner’s principal structure than the neighboring properties principal structures. Coop shall meet accessory structure setback requirements. B. Coops must provide adequate shelter at all times, kept in good repair, and built with weather resistant materials. 4. Runs A. Runs must be attached to the coop, completely enclosed and located closer to the property owner’s principle structure than the neighboring properties principle structure. Runs shall meet accessory structure setback requirements. B. Runs cannot be constructed of unfinished, chipped, decayed, or any other material that can pose a safety risk. 5. General Requirements A. Food storage shall be kept in watertight, rodent proof containers stored inside coops or buildings. B. Crowing hens, breed chickens, roosters or adult male chickens are not allowed. C. Chickens shall not roam free outside of the coop area at any time. D. Eggs shall not be sold from the site E. Slaughtering of chickens is not allowed. F. Deceased chickens shall be disposed of immediately in a safe manner, which may include trash disposal after placing the deceased bird in a sealed bag. G. Manure shall be kept in leak-proof containers with covers and any manure on site shall not create a public nuisance. H. A one-time permit is required. Subd. 2: Prohibited Animals. The ownership or harboring of the following animals within the City is prohibited. a) Farm animals, including but not limited to, cattle, horses, hogs, chickens, geese, sheep, goats, ducks and turkeys. b) Predatory animals usually found in the wild, including but not limited to lions, bears, wolves, tigers, cougars, bobcats, alligators, crocodiles and members of the monkey family. c) Animals, the importation or sale of which as a pet, is prohibited by state or federal law. d) Minnesota animals found in the wild, the hunting or trapping of which is totally prohibited or which requires a big game license. Section 1004.03: ANIMAL IDENTIFICATION. All dogs are required to have some identification on them that would assist in identifying the owner. Identification under this section include microchips, veterinarian issued rabies certificates, or any tags or collars with contact information and phone number(s) inscribed on it. Section 1004.04: MULTIPLE ANIMAL PERMITS. Prior to exceeding the animal limits set forth above, owners must make application for an annual animal permit that allows them to exceed the limits listed in this Ordinance by no more than two animals. Multiple Animal Permits will only be issued to residents that are experiencing extraordinary circumstances such as military deployment, or will be fostering animals for the Tri-County Humane Society. Applicants must provide information for each animal in excess of the limit, including: name, color, species, age and housing provided for each animal. A multiple animal permit may be modified from time to time or revoked by the City for failure to conform to required restrictions, limitations or prohibitions. Such modification or revocation shall be effective from and after ten (10) days following the mailing of written notice to the person keeping or maintaining the animals. a. Fostering. Owners who provide foster care for animals through the Tri-County Humane Society may be granted annual permits without providing information regarding the identification of each animal fostered. b. Military deployment/other exceptions. Owners that possess animals in excess of the limitations set by this Ordinance for a deployed armed services member are required to show proof of ownership and deployment. Other extraordinary circumstances may be approved by the City on a case by case basis. Section 1004.05: KEEPING OR HARBORING PROHIBITED. No person shall own, care for, have custody or control of, within the City limits, any non-domestic animal and/or any animal specifically prohibited as provided for in this Ordinance. Subd. 1 Exceptions: Certain animals are permitted within the City’s Agricultural and Rural Residential Zoning District as specifically provided within the City’s Zoning Ordinance. Section 1004.06: ANIMALS AT LARGE PROHIBITED. It shall be unlawful for the owner of any animal to permit the same to run at large anywhere in the City of St. Joseph other than the property of the owner thereof and City designated off-leash dog park areas. Owners of animals found running at large are subject to a fine determined by the City’s fee schedule. Animals in the Agricultural and Rural Residential Zoning Districts shall be allowed to run at large unless this issue becomes a nuisance generating complaints from neighbors. Section 1004.07: ABANDONMENT OF ANIMALS PROHIBITED It shall be unlawful to abandon any dog or other animal within the City. Section 1004.08: RABIES CONTROL. Subd. 1: All dogs over the age of six (6) months, kept, harbored, maintained or transported within the City shall have current vaccinations given by a licensed veterinarian for rabies. Subd. 2: A copy of certificate of vaccination shall be provided to the City upon request. Subd. 3: Animals known to have been bitten by or exposed to a rabid animal must be euthanized or the animal’s owner must adhere to procedures as described in the National Association of State Public Health Veterinarians (NASPHV) Compendium of Animal Rabies Prevention and Control. Notification of exposure shall be made immediately to the City. Costs associated with exposure are incurred at the animal owner’s expense. Section 1004.09: NUISANCE NOISE, PROPERTY DAMAGE, REMOVAL OF ANIMAL EXCREMENT. Subd. 1: Nuisance Noise. It is unlawful for any owner to maintain at any place within the City any animals which, by their habitual whining, barking, howling or other disagreeable noises, disturbs the people in the locality where kept. Subd. 2: Damage to Property. No person having the custody or control of a dog or other animal will permit the animal to damage any lawn, garden, or other property, public or private, or to defecate on private property, without the consent of the property owner. Subd. 3: It is the responsibility of each person having the custody or control of a dog or other animal to promptly remove any feces left by such dog or animal on any sidewalk, gutter, street, park land or other public property, or any public area, and to dispose of the feces in a sanitary manner and to have in immediate possession a device or equipment for the picking up and removal of feces. For the purpose of this subdivision, “public area” will include any property open for public use or travel, even though it is privately owned. Subd. 4: It shall be unlawful for any person, owning or harboring a dog, to allow an unreasonable accumulation of dog excrement upon property owned or possessed by such person. An "unreasonable accumulation" is defined as an accumulation which omits an offensive odor which can be detected from adjacent property, which is unsightly or offensive to the sight or which creates a public health risk. Section 1004.10: IMPOUNDMENT. The Animal Control Officer or designee may impound any dog found at large at any time within the City. Section 1004.11: REDEMPTION. Animals may be redeemed from the Animal Shelter by the owner at any time during office hours, within five (5) business days after seizure and impounding, upon a statement of ownership, and payment of the impounding fee, including the cost of caring for the animal during the impound period. The animal will be released to the owner, unless it is being held for rabies observation or for potentially dangerous or dangerous dog designation. Any animals not redeemed by the owner shall become the property of the Animal Shelter. Section 1004.12: DANGEROUS AND POTENTIALLY DANGEROUS ANIMALS The Animal Control Officer or their designee will designate any animal as dangerous or potentially dangerous upon receiving evidence that such animal meets the definition set forth in this ordinance. Subd. 1: Exemptions. Animals may not be designated as dangerous or potentially dangerous if the threat, injury, or damage was sustained by a person who was: a) Committing, at the time, a willful trespass or other tort upon the premises occupied by the owner of the animal; b) Provoking, tormenting, abusing, or assaulting the animal or who can be shown to have repeatedly, in the past, provoked, tormented, abused, or assaulted the animal; or c) Committing or attempting to commit a crime. Subd. 2: Notification and Procedure. When an animal is declared dangerous or potentially dangerous, the owner shall be notified in writing. a) The notice shall state the date, time, place the animal bit, chased, attached or threatened and shall advise the owner that they have fourteen (14) days to appeal the determination by requesting a hearing b) The owner must immediately comply with the Proper Enclosure requirements as defined in this ordinance, even if appealing the designation. Subd. 3: Noncompliance of Order. If an owner of a dangerous or potentially dangerous animal fails to comply with any conditions set forth in this ordinance and fails to request a hearing within fourteen (14) days of the designation, the animal shall be seized. a) Notice shall be provided to the owner of the basis for the seizure and the right to request a hearing to determine whether the conditions were violated Subd. 4: An owner of a dangerous or potentially dangerous animal must notify the Police Department in writing within fourteen (14) days of any transfer to a new owner or location, or death of the animal. This notification shall include proof of death or the complete name, address, and telephone number of the person to whom the dog has been transferred or the address where the dog has been relocated. Subd. 5: Review of Designation. Beginning six (6) months after and animal’s designation as dangerous or potentially dangerous, an owner may request in writing that the designation be reviewed by the city. The owner must also provide evidence that the dog’s behavior has changed and that no violation of this ordinance has occurred during the time period. Section 1004.13: POTENTIALLY DANGEROUS ANIMALS. An animal that has been determined to be potentially dangerous shall do the following: a) The animal shall be required to be restrained by a leash not to exceed six (6) feet in length, and/or muzzled, and under the control of a person eighteen (18) years of age or older at all times it is outdoors and not inside a proper enclosure; and b) If the animal is a dog or cat, the owner shall provide proof of spay or neuter; and c) The owner shall be required to complete an approved dog obedience class; and d) The owner of a potentially dangerous animal shall have a microchip installed or injected on the animal, to the extend that the species of the animal allows placement of the chip. The identification number and microchip manufacturer shall be provided to the city. All costs related to the installation and maintenance of the chip are the owner’s responsibility. If the animal is impounded, the microchip will be installed or injected prior to its release Section 1004.14: DANGEROUS ANIMALS: The Animal Control Officer or designee, after designation of an animal as dangerous, has the authority to determine the disposition of the dangerous animal. a) The dangerous animal will be euthanized; or b) The dangerous animal will be housed in a proper enclosure. Proper enclosure means securely confined indoors or in a securely locked pen or structure to prevent the animal from escaping and to provide protection for the animal from the elements. A proper enclosure does not include a porch, patio, or any part of a house, garage, or other structure that would allow the animal to exit of its own volition, or any house or structure in which windows are open or in which door or window screens are the only barrier which prevent the animal from exiting. Such enclosure will not allow the egress of the animal in any manner without human assistance. A pen or kennel for a dog designated as dangerous will meet the following minimum guidelines: 1. Have a minimum overall floor size of thirty-two square feet 2. Sidewalls will have a minimum height of five feet and be constructed of 11 gauge or heavier wire. Openings in the wire will not exceed two inches, support posts will be 1 ¼ inch or large steel pipe buried in the ground eighteen inches or more. 3. A cover over the entire pen or kennel. The cover will be constructed of the same gauge wire or heavier as the sidewalls and will not have openings greater than two inches. 4. An entrance/exit gate. The gate must be constructed using the same materials as the sidewalls with openings no greater than two inches. The gate will be equipped with a device capable of being locked and will be locked at all times when the animal is in the pen or kennel. c. Insurance. The owner is required to provide and show proof annually of public liability insurance paid in full in the minimum amount of $500,000. If the animal is impounded, proof of insurance must be provided prior to the animal’s release d. Posting. Post the front and rear of the premises with clearly visible warning signs including a warning label to inform children that there is a dangerous animal on the property as specified in Minnesota Statute 347.51. e. Muzzle. If the animal is a dog and is outside the proper enclosure, the dog must be muzzled and restrained by a substantial chain or leash not to exceed six (6) feet in length and be under the physical restraint of a person at least eighteen (18) years of age or older. The muzzle must be of such design as to prevent the dog from biting any person or animal, but will not cause injury to the dog or interfere with its vision or respiration. f. Microchip Identification. The owner of a dangerous animal is required to have a microchip installed or injected on the animal, to the extend that the species of the animal allows placement of the chip. The identification number and microchip manufacturer shall be provided to the city. All costs related to the installation and maintenance of the chip are the owner’s responsibility. If the animal is impounded, the microchip will be installed or injected prior to its release. g. Annual Registration. The owner of a dangerous animal or potentially dangerous animal shall register the dog annually with the Police Department. Registration shall include providing where the animal is residing and current rabies vaccination records. h. Spay/Neuter. If the dangerous animal is a dog or cat, the owner shall provide proof of spay or neuter. i. Tag. A dangerous dog must have a standardized, easily identifiable tag identifying the dog as dangerous and containing the uniform dangerous dog symbol affixed to the dog’s collar at all time. j. Obedience Class. The owner of a dangerous dog shall be required to complete an approved dog obedience class. k. Appeal. Appeal of the Animal Control Officer’s dangerous animal designation will be a hearing not more than fourteen (14) days after receipt of the appeal request. At the time of the hearing, the animal owner may appear and present any evidence which the animal owner deems material to the investigation. The hearing officer must be an impartial employee of the city or an impartial person retained by the city to conduct the hearing. The hearing officer will affirm or reject the dangerous animal designation or may impose other sanctions as warranted. The hearing officer’s decision shall issue within 10 days of the hearing. If the declaration is upheld, the actual expenses of the hearing up to a maximum of $1,000 will be the responsibility of the animal owner. Section 1004.15: ANIMAL BITING. Subd. 1: Whenever any animal capable of transmitting the rabies virus has bitten any person or domestic animal, the owner or custodian of the biting animal, upon being notified by the city, will immediately cause the animal to be quarantined at the Animal Shelter, or by a veterinarian licensed to practice in the State of Minnesota for a period of ten (10) days after the bite incident. The city may allow the owner to quarantine the animal if proof of current rabies vaccination is provided. All expenses related to any quarantine will be the responsibility of the animal owner. Subd. 2: Release from Quarantine. At the end of the ten (10) days, a licensed veterinarian shall examine the animal to ascertain whether symptoms of rabies exist. If the veterinarian diagnoses the animal to be free of the signs of rabies, the animal shall be released from quarantine. If a quarantined animal sickens or dies, it shall be sent to the Minnesota Department of Health for rabies testing. The owner of the animal is responsible for the cost of quarantine, veterinary fees and testing. Subd. 3: Noncompliance. If an owner fails to comply with any portion of the quarantine, the animal shall be seized and impounded for the remainder of the quarantine period. Section 1004.16: PENALTY. Any person violating any of the provisions of the Ordinance shall be deemed guilty of a misdemeanor. STAFF MEMO Prepared by: Lori Bartlett, Finance Director Meeting Date: 9-15-25 ☐Consent Agenda Item ☒Regular Agenda Item Agenda Item # 9 Reviewed by: Item: 2026 Preliminary Budget and Levy Priority: Includes all priorities in the budget assumptions ACTION REQUESTED 1.Consider adoption Resolution 2025-064 adopting the preliminary 2026 Budget and proposed 2025 tax levy, collectible in 2026. 2.State verbally the public hearing for the final budget and levy will be held on December 1, 2025 at 6:00 PM in the St. Joseph council chambers. City taxpayers may call city offices at 320-363-7201 with questions regarding their property notice they will receive in November. Comments can also be sent to city offices at 75 Callaway St E, St. Joseph, MN 56374. BOARD/COMMISSION/COMMITTEE RECOMMENDATION The EDA, CVB and Park Board reviewed their 2026 budget proposals. PREVIOUS COUNCIL ACTION Councilmembers were given the opportunity to discuss their budget priorities and input at council meetings and work sessions the past couple months. Debt Management Study will be presented by Northland Securities presented to council at the council meeting on Sept. 15, 2025. REFERENCE AND BACKGROUND The Cleargov Digital Budget Book can be found at the following website with more detail of the 2026 budget starting in October. https://city-saint-joseph-mn-budget-book.cleargov.com/20798 The enclosed preliminary budget reflects staff recommendations and council feedback. The budget reflects an estimated tax rate increase of 0.8%. The annexed commercial/industrial properties are paying 1.3% higher (up to the City’s urban tax rate) in the tax rate per the OAA agreement. For 2025, Minnesota homestead market value exclusion (HMVE) maximum phase out amount for homeowners was increased allowing the exclusion to be passed on to homes valued up to $517,200. The exclusion amount also increased from $30,400 to $38,000. The HMVE reduces the taxable market value for a homeowner’s primary residence. The impact to cities for this law change is a reduction of an average of 2% of the taxable market value. The 2025 HMVE is effective for 2026 also. The overall taxable market value increased an estimated 9.8% per the Stearns County Auditor’s office. Many communities have indicated much lower changes in their taxable market values. St. Joseph is unique with the commercial and industrial developments over the past few years in the downtown, industrial park and other areas in the city. In addition, the multi-family units added to the tax base have added to the increased market values. The variety of investments into the community has exceeded many other regional cities; thus, provide better than most taxable market value estimates. For 2026, over $18M of new taxable market value is coming on the tax rolls. The estimated effect on an urban $350,000 valued home is a tax increase of $26.90 (before any adjustments in the homeowner’s taxable market value). A $1 million business would see a 1.3% Work Session - Discussion Only Action Items will be acted upon at the regular city council meeting. increase in their city’s taxes totaling $154.55. A rural residential homeowner with a $350,000 home would see an increase of $42.90 in taxes. An annexed commercial business valued at $1 million would see an increase of $251.84. The following items impacted the proposed 2026 budget. Taxes/Grants/Aids • Local Government Aid (LGA) increased $5,311; budgeting $75,000 in Fund 110 debt relief for small, unforeseen projects. This is a decrease of $25,000 from 2025. • Public Safety Aid will be spent in full once the fire hall roof replacement is completed • Property Tax Sharing with St. Joseph Township from the 2019 annexation agreement was completed in 2025, reducing expenditures by $19,190 • Property Taxes Estimate $18,000 tax payment for the Old Casey’s building in 2026. • Transportation Aid is a new State aid that began in 2024 with a partial receipt. The first full year receipt was in July 2025 for $8,915. This aid is generated from sales tax on auto parts and will continue annually. • Tax Abatements: Trobec’s and Country Manor are at full value for tax abatements in 2026, similar to how budgeted in 2025. Hansen and Co. abatement is not projected to start until 2026, but at a reduced amount since they will not be at full taxable value yet • TIF: The following tax increment financing projects have several years remaining: o TIF 2-1 Millstream Shops and Lofts (2034) o TIF 2-3 Bayou Blues and Alley Flats (2042) o TIF 4-1 Fortitude Senior Housing (2043) • General levies proposed to increase $267,454, a 5.8% increase • Debt levies discussed with Debt Management Study – increase $234,905, a 5% increase • Overall levy proposed to increase $502,356, 10.8% A summary table of the proposed urban tax rate is below with an estimated 11.2% increase. NTC $7,127,083 9.8% ↑ Adopted 2025 Levy Urban Rates Only Proposed 2026 Levy Urban Rates Only General Levy $2,450,540 37.75% $2,670,873 37.48% Debt Levy $1,619,150 24.94% $1,854,052 26.01% Total $4,069,690 62.69% $4,524,925 63.49% 350,000 Home $2,100 $2,127 $27 ↑ 1,000,000 Business $12,067 $12,222 $155↑ Staffing/Benefits/Wages: • An additional full-time police officer is budgeted • LELS/AFSCME contracts expire 12/31/25 - Both unions submitted intents to negotiate • 3.5% general increase plus steps is included, compensation study reflects the pay scale is comparable to similar sized cities • Planning Intern remained budgeted, but unpaid • Increase in city portion of Health Insurance and insurance opt-out to be negotiated • Implementation of the mandatory Mn Paid Leave using a private insurer • Small increase for election judges Operations: • Professional services: based on historical costs, anticipated projects and notification of fee increases, the professional services budget increased. Inflation pressures were also taken into consideration. • Membership Dues/Community Support reviewed by city council. All proposals were left in the preliminary budget. RSVP was removed from funding in 2026 per council. • General liability and workers comp insurance increase based on LMC recommendations • Interest earnings increased across the board due to current market conditions and projected mark to market projections. • Fee Schedule draft will be reviewed beginning with the October work session. Rates are assumed and a draft in the preliminary 2026 budget. • Seal Coating/Crack Filling annual project included in Pavement Maintenance Plan. Reserves set aside annually, levy reduced slightly for 2026 due to reserves in funds. • Elections 2026 elections will include the Aug. primary and Nov. general elections. Boards/Commissions: EDA: EDA recommends continuing their initiatives to revitalize the downtown and CR75 highway business district as well as pursuing a boutique hotel in the downtown area. Council approved an increase in the Bruno Press CVB contract to be funded by the EDA. JoeTown will be hosting the Connecting Entrepreneurial Communities (CEC) conference in fall 2026. Funding will come from the UofM Extensions and donations. CVB: The CVB plans to continue with the shop small event, magazine advertising and social media campaign. They are looking to update Wobegon trail maps and highway signage. Lodging taxes average $$12K. Budgeted this amount plus $300 for short-term rentals. Merchandise sales will continue at the MN Street Market and looking to expand at the CSB Spirit store. The JoeTown Tourism group will be expanding business advertising with sponsorship fees the group collects from St. Joseph businesses. Park Board: The Park Board plans to add ADA compliant playground equipment in Klinefelter Park in 2026. They are working with SEH on plans and specifications to bid out the project before the end of 2025. The Park Board plans to put seed money away each year for dog park features and Schneider ballfield equipment needs. The St. Joseph Joes Baseball Team will also fundraise for equipment needs at the ballfield. Rivers Bend Park has some funding for educational signage of the native plants. Fire Dept: The number of fire calls is planned to increase with taking on CSB fire responses. CSB will pay an annual stipend to cover the call costs. Both contract revenue and firefighter payroll were increased in the 2026 budget as a result. A $3,000 municipal contribution is included but not required. PERA SVF participation began in 2025 with a pension level of $3,600. The Fire Relief will be requesting an increase in the pension level but will not impact the municipal contribution for 2026. The Estimated Market Value (EMV) and proposed budget allocations follows. The final EMV will not be known until the end of Dec. The EMV allocation used is the as 2025. Est. 2026 MV % 2026 Operations Allocation 2026 Debt Allocation City of St. Joseph 57.59% $256,230* $49,052 St. Joseph Township 19.15% $81,545 $16,311 St. Wendell Township 23.26% $99,045 $19,812 *City covering community room and rescue van funding that the city owns outright Capital Improvements: To begin, the Engineer Capital Improvement Plan (CIP) has been discussed at the August council workshop. The improvement projects identified as 2026 priorities include the projects in the table below. If council is supportive of the projects, the feasibility reports should be ordered soon so S.E.H. can complete their survey work before winter. This also allows the City to be on the front of the bidding season that may bring in more favorable bids. 2026 Street Overlay Improvements: Jasmine Ln, Iris Ln, 13th Ave NE, 14th Ave NE, Ridgewood Ct, Dale St, Jade Rd, 7th Ave NE, 19th Ave NE, Elm St E, 15th Ave NE, Baker St (include trail connections along Baker St) Downtown Safety: Council requested adding a budget line annually to add safety features such as sidewalks, lighting, curb bump outs, etc. Community Center/YMCA: Fundraising continues into 2026. Design and construction to begin in 2026 to spend down the State bonding money ($4M) as required by the State. Next Pump Station: Northland Business Center 2 Hill Street/Morningside Acres: watermain replacement, curbing and street reconstruction (delayed from 2024) Welcome to St. Joseph Signs: replace CSAH 75/CSAH 2 sign, add sign to Gateway Commons Old Casey’s Building: auction equipment, demo building, add above ground city fuel tanks Stationary Generators: add generator to Ridgewood lift station, WTP1 Planning Document Updates: Transportation Plan, Comprehensive Rate Study (annually) SCAWAC Projects: Equip & Energy Improve projects, Equipment Replacements Proposed developments that may spur street and utility work include the following projects: Gateway Development – CSAH 2 sewer extension/sewer lift station Rivers Bend Development – sewer lift station, Jade Road South construction – extend utilities Northland Business Center Phase II – sewer lift station (included above), extend utilities, Westwood Parkway extension, internal streets – 2026 State Bonding request The capital equipment plans (CEP) are funded annually along with two equipment certificates to offset peaks and valleys in the equipment levies. The next equipment certificate issue is programmed for 2028. Below is a summary of the equipment requests for each department for 2026. Department 2026 Capital Purchases Administration Welcome Sign – CSAH2, CSAH75 Administration Election Equipment Administration Computer Software Upgrades Administration Computer Replacements EDA Business Development Park Board Klinefelter Park ADA Playset Park Board Rivers Bend Park Education Signs Park Board Schneider Field Bleacher Roof Fire Fire Hall Roof Replacement Fire Mobile Radios Replacement Fire Extrication Equipment Fire Air Packs Fire Turnout Gear Fire Paint Red Outside Fire Hall Police Squad #709 Addition, plus Equipped Police Portable Radios Police Copier Police Verkada Cameras, Phase II Public Works Seal coat/Crack fill Public Works Refrigerant Charger Public Works Mechanical Tools Public Works Wing Deck Mower Public Works Bale Forks for Skid Steer Public Works Steam Wash Station Public Works Millstream Ballfield Fence Public Works Millstream Concrete by Concessions Public Works Shop 2 Roof Replacement Enterprise Main Lift Station Wet Well Lining Enterprise Final Year – Cell Meter Conversion Enterprise Boilers Enterprise WTP1 Generator Enterprise Sewer Sampler Enterprise Storm Ponds Maintenance Enterprise Cell H2S Reader BUDGET IMPACT 2026 Preliminary Budget Summary Fund Type Revenues Expenditures Surplus (Deficit) Budget Governmental $10,371,010 $10,846,103 ($475,093) Enterprise $4,202,975 $5,214,934 ($1,011,959) Total $14,573,985 $16,061,037 ($1,487,052) Note: The enterprise funds rate analysis to be completed by October and may change the budget estimates. Payable 2026 Levy Summary Urban General Levy $2,670,873 37.48% estimated Urban Debt Levy $1,854,052 26.01% estimated Rural Resident Levy $136,124 23.57% estimated Rural Commercial/ Industrial Levy $499,596 63.49% estimated Total Levy $5,160,645 10.8% increase To reduce the overall levy by 1%, property taxes would need to decrease $47,000 To reduce the tax rate by 1%, property taxes would need to decrease $70,000 STAFF RECOMMENDED ACTION Consider acceptance of the preliminary budget and levies. The final levies cannot be higher than the preliminary levy (unless granted in law for unusual and infrequent situations). Set Truth In Taxation hearing for December 1, 2025 at 6:00 PM at the St. Joseph Government Center. SUPPORTING DATA/ATTACHMENTS Resolution 2025-064 Adopting the Preliminary 2026 Budget and Proposed 2025 Tax Levy, Collectible in 2026 Estimated Net Tax Capacity – Urban and Rural Properties Debt Levy Summary Capital Improvement Plan Summary RESOLUTION 2025-064 RESOLUTION ADOPTING THE PRELIMINARY 2025 BUDGET AND PROPOSED 2025 TAX LEVY, COLLECTIBLE IN 2026 NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA, AS FOLLOWS: That a preliminary 2026 Expenditure Budget of $16,061,037 is hereby adopted and that the following is the preliminary tax levy collectible in 2026, to be levied upon taxable property in the City of St. Joseph, for the following purposes: General Fund (TAGS 8402/8403) $ 2,670,873 General Fund (TAGS 8404/8406) 136,124 General Fund (TAGS 8405/8407) 499,596 (not to exceed tax rate TAG 8403) Bonded Indebtedness (TAGS 8402/8403): 2016 Bonds 260,000 2019 Bonds 85,000 2020 Bonds 225,000 2021 Bonds 105,000 2022 Bonds 539,052 2023 Bonds 280,000 2024 Bonds 80,000 2025 Bonds 280,000 Total Preliminary Levy $ 5,160,645 The City Administrator is hereby instructed to transmit a copy of this Resolution to the Stearns County Auditor/Treasurer in the State of Minnesota. The motion by Council Member _________________ was made for adoption of the foregoing Resolution was duly seconded by Council Member ___________________ and, upon vote taken thereon, the following voted in favor thereof: And the following voted against the same: And the following were absent: WHEREUPON, the Resolution was declared passed and adopted this 15th day of September, 2025. Adam Scepaniak, Mayor ATTEST David Murphy, Administrator City of St. Joseph, Minnesota 2026 Net Tax Capacity - Urban Properties Preliminary as of September 15, 2025 Net Tax Capacity 6,492,151 7,127,083 (Stearns County prelim) 2025 2026 2026 Levy Limit n/a 7.43% 9.78% TAGS 8402,8403 TAGS 8402,8403 Mill Rate Levy Levy Change General Fund Levy 2,145,840 33.0528% 2,409,238 33.8040%0.751% Retirement Reserve 15,000 0.2310% - 0.0000%-0.231% General Equip Fund 109 212,135 3.2676% 164,600 2.3095%-0.958% Park Dedication Fund 50,000 0.7702% 50,000 0.7015%-0.069% Fire Fund 240,855 3.7099% 256,230 3.5952%-0.115% Country Manor's Abate - EDA 32,000 0.4929% 45,115 0.6330%0.140% Trobec's Abate- EDA 100,000 1.5403% 65,000 0.9120%-0.628% Hanson Abate - EDA - 0.0000% 24,000 0.3367%0.337% EDA Levy 99,710 1.5359% 101,690 1.4268%-0.109% sales tax abatement (445,000) -6.8544%(445,000) -6.2438% 0.611% Bond 2016 230,000 3.5427% 260,000 3.6481%0.105% Bond 2019 80,000 1.2323% 85,000 1.1926%-0.040% Bond 2020 271,500 4.1820% 225,000 3.1570%-1.025% Bond 2021 125,000 1.9254% 105,000 1.4733%-0.452% Bond 2022 542,040 8.3492% 539,052 7.5634%-0.786% Bond 2023 265,000 4.0819% 280,000 3.9287%-0.153% Bond 2024 105,610 1.6267% 80,000 1.1225%-0.504% Bond 2025 - 0.0000% 280,000 3.9287%3.929% 4,069,690 4,524,925 1.685% 4,658,289 62.6863%5,160,645 63.48915%debt levy w/OAA Properties w/OAA Properties Operational Urban Levy % Change 25 to 26 7.6%Urban Mill Rate Chg 0.803% Operational Urban Levy $ Change 25 to 26 220,333$ Urban Levy Change 455,235$ Debt Urban Levy % Change 25 to 26 14.5%Levy % Change 11.2% Debt Urban Levy $ Change 25 to 26 234,902$ Overall Levy Change 502,356 10.8% 2025 Net Tax 2025 Tax 2026 Net Tax 2026 Tax Impact Analysis Capacity Impact Capacity Impact 150,000 Homestead 1,170 733.43 1,170 742.82 In(de)crease in taxes 1.3% 9.39 175,000 Homestead 1,442 903.94 1,442 915.51 In(de)crease in taxes 1.3% 11.58 200,000 Homestead 1,715 1,075.07 1,715 1,088.84 In(de)crease in taxes 1.3% 13.77 250,000 Homestead 2,260 1,416.71 2,260 1,434.85 In(de)crease in taxes 1.3% 18.14 280,000 Homestead 2,587 1,621.69 2,587 1,642.46 In(de)crease in taxes 1.3% 20.77 300,000 Homestead 2,805 1,758.35 2,805 1,780.87 In(de)crease in taxes 1.3% 22.52 350,000 Homestead 3,350 2,099.99 3,350 2,126.89 In(de)crease in taxes 1.3% 26.90 400,000 Homestead 3,895 2,441.63 3,895 2,472.90 In(de)crease in taxes 1.3% 31.27 250,000 Business 4,250 2,664.17 4,250 2,698.29 In(de)crease in taxes 1.3% 34.12 500,000 Business 9,250 5,798.48 9,250 5,872.75 In(de)crease in taxes 1.3% 74.26 750,000 Business 14,250 8,932.80 14,250 9,047.20 In(de)crease in taxes 1.3% 114.40 1,000,000 Business 19,250 12,067.11 19,250 12,221.66 In(de)crease in taxes 1.3% 154.55 $1 M 20 Unit Apt.12,500 7,835.79 12,500 7,936.14 In(de)crease in taxes 1.3% 100.36 Tax Capacity rate change by 1%70,000$ Estimated Property Tax Impact of the 2026 Urban Levy Budget Preliminary Est. Urban 2026Adopted Urban 2025 City of St. Joseph, Minnesota 2026 Net Tax Capacity - Rural OAA Properties Preliminary as of September 15, 2025 Net Tax Capacity 550,023 577,524 749,428 786,900 (Stearns County Es 2025 5.00%2026 2025 5.00%2026 2025 Levy Limit n/a rural rural comm/ind comm/ind TAG 8404,8406 TAG 8404,8406 TAG 8405,8407 TAG 8405,8407 Rural Residential Levy Rural Residential Levy OAA Comm/Ind Levy OAA Comm/Ind Levy General Fund Levy 122,598 22.2896% 136,124 23.57034% 466,001 62.1809% 499,596 63.48915% 122,598 136,124 466,001 499,596 22.2896%23.5703%62.181%63.489% increase 25 to 26 13,526 increase 25 to 26 33,595 11.03%1.28%7.21%1.31% 2025 Net Tax 2025 Tax 2026 Net Tax 2026 Tax Impact Analysis Capacity Impact Capacity Impact 150,000 Homestead 1,170 260.79 1,170 275.77 In(de)crease in taxes 5.7%14.98 175,000 Homestead 1,442 321.42 1,442 339.88 In(de)crease in taxes 5.7%18.47 200,000 Homestead 1,715 382.27 1,715 404.23 In(de)crease in taxes 5.7%21.96 250,000 Homestead 2,260 503.75 2,260 532.69 In(de)crease in taxes 5.7%28.94 280,000 Homestead 2,587 576.63 2,587 609.76 In(de)crease in taxes 5.7%33.13 300,000 Homestead 2,805 625.22 2,805 661.15 In(de)crease in taxes 5.7%35.92 350,000 Homestead 3,350 746.70 3,350 789.61 In(de)crease in taxes 5.7%42.90 400,000 Homestead 3,895 868.18 3,895 918.06 2025 Net Tax 2025 Tax 2026 Net Tax 2026 Tax In(de)crease in taxes 5.7%49.88 Capacity Impact Capacity Impact 250,000 Business 4,250 2,642.69 4,250 2,698.29 In(de)crease in taxes 2.1%55.60 500,000 Business 9,250 5,751.73 9,250 5,872.75 In(de)crease in taxes 2.1%121.01 750,000 Business 14,250 8,860.78 14,250 9,047.20 In(de)crease in taxes 2.1%186.43 1,000,000 Business 19,250 11,969.82 19,250 12,221.66 In(de)crease in taxes 2.1%251.84 Estimated Property Tax Impact of the 2025 Rural Levy Budget Adopted 2025Adopted 2025 Preliminary Est. 2026 Preliminary Est. 2026 City of St. Joseph, Minnesota Debt Levy Summary For the Year Payable 2026 TAGS 8402,8403 2026 Levy Sum Fund Project Name Debt Levy Year by Year 301 2016A GO Capital Improvement Bonds $4.335M 255,000 304 2016B GO Improvement Bonds $740K 5,000 16 260,000 307 2019A GO Improvement Bonds $1.535M 85,000 19 85,000 314 2020C GO CO Refunding Bonds $1.365M 150,000 310 2020B GO Improvement Bonds $625K 5,000 312 2020B GO CIP Bonds $690K 70,000 20 225,000 311 2021A GO Improvement Bonds $3.190M 105,000 21 105,000 315 2022A GO Improvement Bonds $510K 45,000 316 2022A GO Equipment Certificates $715K 49,052 302 2022A GO Tax Abatement Bonds $6.125M 445,000 22 539,052 317 2023A GO Improvement Bonds $2.040M 185,000 318 2023A GO Equipment Certificates $460K 95,000 23 280,000 319 2024A GO Improvement Bonds $1.090M 80,000 24 80,000 320 2025A GO Improvement Bonds $2.085M 180,000 321 2025A GO Equipment Certificates $445K 100,000 25 280,000 1,854,052 1,854,052 2025 Debt Levy 1,619,150 increase 2025 to 2026 234,902 w/o 22A abatement bonds 234,902 Misc:25