The City Council held a regular meeting on Monday, December 8, 2025.
To view the agenda, and minutes when available, visit the Agenda Center.
To watch the recorded meeting, stream it online or tune in on cable channel 12 (FiberNet), channel 997 (TDS) or channel 180 (Charter). The rebroadcast schedule is available here.
Council Highlights provide a summary of key agenda items and decisions made by the City Council. This overview may not reflect all topics discussed or actions taken during the meeting. For complete details, please refer to the meeting agenda. Official minutes are published once approved.
Public Service Announcements
Winter Reminders
Since the snow is here, and more is on the way, we would like to share two reminders for the winter season:
- Winter parking restrictions are in effect through April 1. There is no parking on city streets between 1 a.m. and 6 a.m., or during declared snow events and plowing operations.
- Property owners must clear snow and ice from sidewalks within 48 hours. We also ask residents to clear 3 feet around any fire hydrants to ensure firefighters can quickly access them in an emergency.
Ice Rinks Open
The ice rinks at 4th Street Park and West Bridge Park are now open, and the 4th Street Park Warming House is ready for the season. Check the City website for hours. Please note, the warming house will be closed on Christmas Eve and Christmas Day and may occasionally close due to staff availability.
Data Center Ordinance Update
The Planning Commission has postponed action on the Data Center Ordinance until its next regular meeting on January 6. That meeting is open to the public, but there will be no public hearing on the item.
In addition, a joint workshop with the Planning Commission and the City Council will be scheduled to review feedback from the latest hearing and written comments. The workshop notice will be available on the City website once it is scheduled.
AUAR Public Comment Period
The City of Monticello has initiated an Alternative Urban Areawide Review, or AUAR, process for a proposed 550-acre technology campus by Monticello Tech LLC.
An AUAR is an environmental study that evaluates the impacts of future development within an area, and the opportunities to manage and mitigate those impacts.
A draft of the Monticello Industrial AUAR is available at City Hall and online at MonticelloMN.gov/712. The public comment period closes on December 18 at 4 p.m.
City Council Decisions
2026 Business Hours
The City’s 2026 hours of operation for City facilities were approved by City Council. The hours are reviewed and approved annually.
The Monticello Community Center’s hours will change for 2026. The new hours begin January 1:
- Monday-Friday: 5 a.m. – 8 p.m.
- Saturday: 7 a.m. – 7 p.m.
- Sunday: 7 a.m. – 5 p.m.
- Summer Hours (May 1 – October 31)
- Monday-Friday: 5 a.m. – 8 p.m.
- Saturday: 7 a.m. – 5 p.m.
- Sunday: Closed
2026 Regularly Scheduled Meetings
The City Council approved the 2026 regular schedule of City Council and commission meetings. This includes meetings for commission and boards that exist by ordinance or state statute, including the following:
- City Council
- Economic Development Authority
- Planning Commission
- Industrial and Economic Development Committee
- Personnel Committee
- Parks, Arts, and Recreation Commission
- Fire Relief Association
- Library Board
- Monticello Orderly Annexation Board
The calendar can be found on the City website at MonticelloMN.gov/304. Meetings are also posted to the web calendar.
Special meetings and workshops may be called in addition to those regularly scheduled. Notices are posted on the official City bulletin board and City website.
MnDOT Hwy 25 – Buffalo to Monticello Construction Agreement
MnDOT will complete a range of improvements along Highway 25, from approximately 215 feet south of Catlin Street in Buffalo to Kjellberg Court in Monticello. The project includes grading, bituminous surfacing, and full depth reclamation among other updates to the corridor.
Improvements within Monticello city limits include a new shared-use pathway on the east side of Highway 25 between 85th Street and Kjellberg Court, and an expanded U-turn south of Kjellberg Court to better accommodate larger vehicles. The City will manage routine upkeep of the pathway, including snow removal and minor repairs. Any cost for future pavement replacement will be shared between the State and City. Street lighting will also be added at the U-turn location. The City will contribute 25% of the lighting upgrade cost, approximately $5,051, and assume responsibility for ongoing maintenance.
The City Council approved the construction agreement with MnDOT. For project information, visit MnDOT Hwy 25 – Buffalo to Monticello.
Chelsea Road Rehabilitation Project - Local Road Improvement Program (LRIP) Grant Application
City staff plan to apply to the Local Road Improvement Program (LRIP) for improvements along the Chelsea Road corridor between Highway 25 and CSAH 39.
The LRIP provides funding for capital construction projects on Trunk Highway Corridors and Routes of Regional Significance as well as Rural Road Safety Projects. The segment of Chelsea Road qualifies as a route of regional significance since it is a major collector roadway. The current grant round offers a maximum award of $1,500,000 for projects being constructed in 2026, 2027, and 2028.
If awarded, the City would be responsible for design, construction management, and other indirect costs, estimated at $350,000, as well as any construction costs beyond the awarded amount. Construction costs for the project are estimated at $2,950,000 for construction in 2028.
Bertram Chain of Lakes Regional Park Agreements
Several agreements related to the maintenance and operation of the Bertram Chain of Lakes Regional Park were approved by the City Council.
Item 2P, Amendments to the Joint Powers Agreement between the City of Monticello and Wright County for the governance, operation, and maintenance of BCOL Regional Park:
- The City of Monticello and Wright County updated the Joint Powers Agreement to further strengthen the partnership in managing the Bertram Chain of Lakes Regional Park. The City of Monticello oversees the active recreation areas, such as the athletic fields and organized sports facilities, while Wright County manages the passive recreation areas including trails, natural resource protection and nature-based activities. The updates aim to clarify the operational roles on the park map and outline the financial and operational processes.
Item 2Q, Amendment to the Bertram Chain of Lakes Operation and Maintenance Agreement with Wright County
- Building on the Joint Powers Agreement, the Operating Agreement clarifies responsibilities, strengthens guiding principles, and ensures decisions are made collaboratively. The Operating Agreements supports a balanced park system with both active and passive recreation. The agreement outlines a shared maintenance framework and requires both agencies to review building, utility, and construction plans before implementation.
Item 2R, Facility Lease Agreement between Wright County, the City of Monticello, and Monticello Public Schools (ISD #882) for the operation of the Nature-Based Education Program at Bertram
- The Nature Based Education (NBE) program is a partnership between Wright County, the City of Monticello, and Monticello Public Schools. The program provides daily outdoor learning for Pre-K through Grade 5 students at the park during the school year. The program makes productive use of existing park facilities, while promoting innovative educational opportunities.
2026 Budget
The 2026 annual budget was adopted by the City Council. The budget is an essential tool of communicating the City’s plans, policies, priorities, and objectives regarding the services to be delivered and the assets to be acquired in the upcoming fiscal year.
Leading up to this decision, the City Council and staff discussed several projects of significance that have expenditures budgeted in 2026. These projects are funding through a variety of sources, including the local sales tax, state funding support, grants, and long-term financing tools like debt. The projects incorporated into the 2026 budget are:
- Water Treatment Plant: Design, engineering, and start of construction
- Public Works Facility: Design, engineering, and anticipated start of construction
- Downtown Monticello: Construction of additional parking
- Bertram Chain of Lakes Regional Athletic Park: Construction of a shared maintenance shop and pickleball courts
- Fallon Avenue Improvements: Utility oversizing associated with next phase of housing development and design of improvements from Chelsea Road to Fallon Drive.
Additional projects in 2026 include:
- Repairs to current city facilities including the building leased to the local youth soccer association, the Monticello Community Center, and the public library parking lot.
- Transportation improvements including completion of the Golf Course Road Trail Project, mill-and-overlay engineering and construction, and design and engineering of pedestrian improvements near East Bridge Park and under Highway 25.
- CSAH 39 Utility Extension Project completion, Ditch 33 Improvements, and fiber services into new developments.
- Equipment purchases for the Wastewater Treatment Plant, sewer camera and trailer, a dump truck, and fleet vehicle attachments.
Bond proceeds are anticipated in 2026 for the Water Treatment Plant and Public Works Facility projects; however, the City continues to budget on a pay-as-you-go basis for other capital projects. The final decision to issue bonds would have a significant impact on future property tax levies, utility rates, and budgets. In addition, the City will continue to collect local sales tax funding to support the continued buildout of the BCOL Regional Athletic Park in 2026 without impacting property taxpayers or funding allocated to other projects.
In addition to projects, the budget includes operating expenditures necessary for day-to-day operations. In 2026, the General Fund increased by 5% to for operations, an increase that includes support for adequate staffing levels, funding for the law enforcement contract with Wright County Sheriff’s Office, striping and crack sealing maintenance for streets and pathways, suitable funding to compensate for inflation impacts, and maintaining consistent city service levels.
For more information on this item, please see Item 3A 2026 Budget (PDF) or watch the presentation online.
Public Works Facility Project Gets Redesign
The City is working with Oertel Architects and RJM Construction on the planning and design of a new Public Works facility to be located on School Boulevard. A condition assessment of the current Public Works facility at 909 Golf Course Road showed that the existing facility can no longer support the current and future operations or equipment fleet within the Public Works department.
The City Council paused design work in 2024 to review funding options, including an unsuccessful state bonding request for the project. Since then, costs have continued to increase. The City Council held a work session in October to review different project scenarios to reduce costs but still complete the project. The Council recommended reducing the size of the facility from accommodating 30 years of growth to 10 years of growth with a bid alternate to accommodate a 20-year growth scenario.
City Council approved a contract amendment with Oertel Architects so that the design of the new facility can reflect the reduced building size, updated code compliance, and revised bid package approach. The redesign will occur from December 2025 to March 2026. Construction is expected to start late summer 2026, with completion estimated for the end of 2027.
See the Public Works Facility project webpage for updates.
Monticello Senior Center Agreements
The City of Monticello has partnered with the Monticello Senior Center since 1992. In 2000, the Senior Center moved into the newly constructed Monticello Community Center. At the time of that move, no formal documentation or agreements were established to define the relationship between the Senior Center and the City of Monticello.
The City Council has approved two agreements between the City and the Senior Center: A Facility Use Agreement and a Fiscal Agreement. The Facility Use Agreement defines the Senior Center’s designated areas within the Community Center and scheduling for additional spaces. The Fiscal Agreement addresses the City’s annual contribution to the Senior Center and clarifies expectations for budget reporting, volunteer contributions, and financial accountability. Together, these documents support the ongoing partnership between the City and the Monticello Senior Center.
Public Hearings
2026 City Fee Schedule
The fee schedule establishes the City’s service charges. Staff review the schedule each year to assess whether the fees cover the costs of providing the services. Notable changes include:
- Animal Control: Daily boarding fees and the boarding access fee will increase.
- Community Center: Fee adjustments include 12-25% increases in membership and rental fees. A 3% credit card processing fee was also introduced.
- Economic Development: Applications fees were added for the Housing Rehabilitation Forgivable Loana and Downtown Façade Forgivable Loan programs.
- Parks: Most park fees increased, averaging about +16% overall.
- Sanitary Sewer: Charges are proposed to increase 3%, and trunk and access charges will increase 4% to account for increased construction costs.
- Storm Sewer: The stormwater utility fee will increase $0.25/month (+5%).
- Waste: The residential garbage service charge is proposed to increase $11.98 from $10.90, however this new amount includes tax, rather than as an additional $1.06 charge. Second containers are now charged the same rate as the first container. The recycling service fee will be reduced by approximately 2%, reflecting lower pricing by LRS.
- Water: Usage charges will increase 8%, as recommended in the City’s utility rate study. Additionally, credits available for ebill statements and ACH payments will increase by $0.75/month if both options are utilized.
A public hearing was held after City staff presented the item. The public hearing provides an opportunity for formal comments to be shared by the public. Following the hearing, the City Council adopted the 2026 City Fee Schedule. The 2026 Fee Schedule will be available online here: MonticelloMN.gov/590.
2026 Final Property Tax Levy
Throughout the second half of the year, the City Council met in a series of workshops to review the proposed 2026 tax levy and budget with a focus on balancing priorities with fiscal responsibility.
For taxes payable in 2026, property values increased across all categories, including a significant 10.2% increase in the value of Xcel’s Monticello Nuclear Generating Plant. This results in an estimated 7.3% increase in the City’s overall tax capacity. More of the tax burden is shifted to Xcel in 2026, which is the first shift to Public Utility property in five years.
The Council certified a preliminary 2026 levy at $15,337,000 ($1,220,000 or 8.6% higher than 2025), with a Housing and Redevelopment Authority (HRA) levy of $504,000 ($5,000 or 1% higher than 2025). The preliminary city tax levy was included on Truth-in-Taxation notices sent to property owners in November.
Updated tax base information later showed a lower overall increase in the City’s tax base at 7.3%. The Council considered both an 8.6% and 7.2% final levy. Following the public hearing, the City Council approved a lower tax levy increase at 7.2%, resulting in a $1,020,000 increase in the city property tax levy. The overall combined City and HRA levy is 7.0%.
Most of the City’s tax levy goes into the City’s General Fund which supports many of the basic functions of local government, including public safety, snow and ice removal, planning and zoning, and more. The HRA levy is used by the Monticello Economic Development Authority (EDA) to fund housing and redevelopment initiatives throughout the community. Minnesota statutes grant certain authorities to cities, whereby Minnesota cities are reliant on property taxes for funding. Monticello frequently seeks other funding sources, including state and federal grants, to limit greater impact on local taxpayers.
See Item 3B 2026 Final Levy (PDF) for more details.