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compensation increases. A plan funded within current compensation could be considered later <br />without an immediate deadline. <br /> <br />Councilmember Olson asked whether the decision would apply only to the current Council or <br />continue for future Councils, and whether the effective date could be delayed. <br /> <br />Administrative Services Director Lasher explained that the plan design would remain in effect for <br />two years and advised that she would confirm the available effective-date options. She reiterated <br />that there was no need to act immediately unless the Council intended to increase compensation. <br /> <br />Mayor Heineman clarified that staff was seeking consensus on whether the Council wanted to <br />advance the matter to an anonymous vote. <br /> <br />The Council did not reach consensus on establishing a Council health care savings plan at this <br />time. The Council did not request that the item return on a future agenda unless a future Council <br />expressed interest. <br /> <br />2.03: Discussion Regarding Union Contract Negotiations (Discussion Closed to the Public) <br /> <br />Administrative Services Director Lasher introduced the item to update the Council regarding <br />negotiations for the City's five labor contracts. She explained that several meetings had occurred <br />and additional negotiations were anticipated. Minnesota Statutes, section 13D.03, permits the <br />governing body to close a meeting for labor-negotiation strategy. <br /> <br />Motion by Councilmember Riley, seconded by Councilmember Specht, to recess to Closed <br />Session at 5:55 p.m. for discussion of union contract negotiations. <br /> <br />Motion carried. Voting Yes: Mayor Heineman, Councilmembers Riley, Specht, Buscher, Olson, <br />Peters, and Stewart. Voting No: None. Absent: Councilmember Peters. <br /> <br />The meeting reconvened to Open Session at 6:30 p.m. <br /> <br />Mayor Heineman reported that the Council met with staff and reviewed the status of negotiations <br />involving LELS Patrol, LELS Captains, Crime Data Analysts, and AFSCME. The Sergeants' <br />bargaining group had not yet provided information. Negotiations would continue with the <br />Sergeants and all other groups to complete the contracts. <br /> <br />3. TOPICS FOR FUTURE DISCUSSION <br /> <br />3.01: Review Future Topics/Calendar <br /> <br />City Administrator Hagen reviewed the future topics calendar. Based on the direction provided <br />during the budget discussion, he recommended removing another budget review from the <br />September 8, 2026, work session and returning directly with the preliminary budget and levy for <br />adoption on September 22, 2026. <br /> <br />City Council Work Session / August 25, 2026 <br />Page 4 of 7 <br />