CITY OF WANAMINGO
City Council Regular Meeting
Monday, August 10, 2026, 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Eric Dierks, Stuart Ohr, and Rebecca Haugen
City Administrator: Michael Boulton
Deputy Clerk: Laure Musselman
ABSENT: Jeremiah Flotterud
ALSO PRESENT: Brad Kennedy, Peter Grimsrud – Zumbrota News-Record, State Representative Keith Allen, and Jacob Vredenburg.
ADOPT AGENDA: Haugen motioned to adopt the agenda, seconded by Dierks. Passed 4-0-0.
CONSENT AGENDA: Ohr motioned, seconded by Dierks. Passed 4-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Working with two maintenance staff since end of June. It has been hectic keeping up with day-to-day tasks. Have not been working on many special projects.
2) Rented water valve exercising machine from Minnesota Rural Water. Exercised most of the hydrant vales. Identified a few standpipes for hydrant valves that need to be repaired.
3) Concrete replacements were completed to the catch basins on the corner of Beverly Street and Nelson Drive, on Railroad Street near the locker, and at the Street Shop building.
4) We able to sweep streets for the first time in a month, due to being short staffed.
5) Burnt brush pile. Mead Johnson production was shut down for a few weeks. They asked to burn the pile during shut down to save on the cost of removal of the pile
6) Homestead Restoration completed the repairs to the Nature Trail walking bridge ramp.
7) Mowed along MN TH 60 & MN TH 57 ditch and utility poles. Mowed at the WWTP, community garden, undeveloped lot boulevards, and other various areas around town.
Holmes thanked Jacob Vredenburg of Homestead Restoration for the great work that he and his staff did in the repairs to the Nature Trail pedestrian walking bridge ramp. Vredenburg stated that it was a fun project and that he appreciated being able to take the project on.
B) State Representative Keith Allen reported on:
1) The State Bonding Bill included $12 million for the North Zumbro Sanitary Sewer District. The original House bonding bill language did not include funding for NZSSD. The original Senate version included funding language for the NZSSD. Allan had to fight behind the scenes to get Seante equivalent funding included in the final version of the bonding bill.
2) Wastewater treatment and fresh/drinking water is a priority at the legislature during the next bonding bill. The lack of funding for wastewater treatment and fresh/drinking water is slowing growth in greater Minnesota.
3) Republicans held the line on new taxes during the past legislative session
4) The State House of Representative was tied during the past session (2025-2026), which only occurred one other time in Minnesota History (1979-1980).
5) Worked effectively last session with twelve co-authored and four authored bills passed. To do this in a tied House you need to work together.
6) Voted to keep local control on zoning. There was a lot of discussion for the State to require local governments to change zoning to reduce housing cost and ease regulations. Allen heard from local governments that they did not want the State to intervene for several reasons, including significant short-term and long-term cost to local government infrastructure.
7) Will continue to research and push for solutions to housing pricing if re-elected next session.
8) Thank you for bringing vocal support to the legislature for the North Zumbro Sanitary Sewer District. Your vocal in person support played a critical role in securing bonding bill funds.
Holmes thanked Allen for his support for the North Zumbro Sanitary Sewer District support for the bonding bill. Holmes said that it was great the Allen has been all over the district. Allen said that it is important to be close to the people to hear their pressing needs and then represent those needs at the legislature.
NEW BUSINESS:
RESOLUTION:
26-046 = Approving Professional Service Agreement with Nagell Appraisal Incorporated: Dierks moved to approve, Seconded by Ohr. Boulton stated that the appraisal was for the stormwater easements needed in Emerald Valley. The appraisals should be completed in the coming weeks. Passed 4-0-0.
26-047 = Certifying Proposed Tax levy for 2027: Haugen moved to approve, seconded by Dierks. Boulton reminded the Council that once the proposed 2027 tax levy is certified that it cannot be raised. Boulton stated that the Council will consider a final 2027 tax levy in December that can be equal to or lower than the proposed tax levy. Boulton stated that the 4.8% proposed levy increase is from $1,230,000 to $1,289,000. Boulton stated the new Dollar General store has a taxable value of $956,000 in 2025. This would bring in roughly $39,000 (slightly less than half City portion) in property taxes (0.041). The former Wanamingo school will become a taxable property with a taxable value of roughly $1.63 million. This would bring in roughly $60,000 (slightly less than half City portion) in property taxes (0.041). Several commercial projects took place in 2025 adding to taxable value including Mead Johnson new affluent building and other renovations, Jake’s Hometown liquor renovation. New construction within the community over the last year (8 new taxable homes in 2025) should aid with the increase to the taxable market value increase. The new construction should more than offset roughly the proposed levy increase (5.75% of the proposed 4.80% increase). There is potential for a decrease in the City tax rate from 2026 to 2027. Administrator Boulton shared concerns with continued inflation and meeting capital needs while balancing property taxes from rising too quickly. Boulton stated that the proposed levy increase helps to cover cost increases from wages, health insurance, public safety (police, fire, and ambulance), audit, attorney, computer & software, electric, park contracted services, and proposed 2027 Roadway and Utility Improvements Project. Passed 4-0-0.
26-048 = Adopting a Proposed Budget for 2027: Ohr moved to approve, seconded by Dierks. Boulton stated that the proposed 2027 general fund budget is $1,136,543. Passed 4-0-0.
26-049 = Setting Date for Public Hearing and Continuation for 2027 Budget Adoption: Haugen moved to approve, seconded by Dierks. Boulton stated that the Public Hearing is scheduled for December 14th at 7:00PM. Passed 4-0-0.
26-050 = Approval to Transfer Up to $38,741.00 from Operating Reserve to SEMMCHRA for 2026 Projected Vacancy, Marketing, and Capital Expenses: Haugen moved to approve, seconded by Ohr. Boulton stated that $38,741 is from operating loss and capital purchases. Boulton stated that the City is levying $25,000 in 2026 which would bring the $50,000 reserve to $36,259 in August 2026. Boulton stated that the City would be levying $25,000 in 2027 which will cover 2026 operating loss and additional capital needs while bringing the $50,000 back in line. Passed 4-0-0.
26-052 = Approving a Mowing Service Contract Extension with Lunde Lawn Care: Haugen moved to approve, seconded by Dierks. Boulton stated that the three-year contract extension is for $1,000/week in 2027, $1,100/week in 2028, and $1,200 in 2028. The quote is in line with other local quote for cost. Passed 4-0-0.
26-053 = Approving a Snow Removal Service Contract Extension with Jason’s Sewer Sucking & Excavating: Ohr moved to approve, seconded by Haugen. Boulton stated that the contract minimum of $14,000/year remains the same. The hourly rate for each piece of equipment slightly increased but remains in line with local industry standards. Passed 4-0-0.
26-054 = Delegating Authority and Administrative Responsibility to Implement WCA as the LGA Within Legal Boundaries of Wanamingo to Goodhue County: Dierks moved to approve, seconded by Ohr. Boulton stated that Goodhue County Soil and Water requested designation resolutions from each jurisdiction for their records. Goodhue County Soil and Water already conducts such work on behalf of the City. However, the State requires approved resolutions for each jurisdiction to be on file for Goodhue County Soil & Water (audit requirement). Passed 4-0-0.
26-055 = Receiving Bids and Awarding Low Bid for the Lead Water Service Line Replacement Project: Ohr moved to approve, seconded by Haugen. The lowest bidder was Levanen Underground for $169,960. Minnesota Public Facilities Authority (PFA) had a maximum allotted for the grant of $250,000. Boulton stated that the Council will consider approval of a resolution/agreement with MN PFA at the September City Council meeting. Passed 4-0-0.
ORDINANCE #217 – An Ordinance to Administer and regulate the Public Right-Of-Way in the Public Interest, and to Provide for the Issuance and Regulation of Right-Of-Way Permits – First Reading – Boulton stated that the City lacks specific ordinance language to govern private utilities that are not covered by Franchise Agreements for right-of-way work. The City Attorney utilized the League of Minnesota Cities sample ordinance language to put together the draft ordinance. The City has been working with BevComm on enforcement details while they install fiberoptics lines throughout Wanamingo. BevComm will be covered by the new ordinance. Boulton stated that this is a first draft of the ordinance. Boulton stated that it will more than likely have changes before the 2nd Reading/Public Hearing at the September 14th Wanamingo City Council meeting.
OLD BUSINESS:
Administrator Boulton provided a memo on Fund 210 – Revolving Fund Loan. The Fund 210 - Revolving Fund Loan was created in October 2005 with $45,000. The fund was created by the City Council in conjunction with the EDA. The $45,000 was originally moved from the general fund to the newly created Fund 210 – Revolving Fund Loan. The Revolving Fund Loan was intended to assist small business creation and expansion with short-term (gap) financing. Each loan initiated with an application process, required collateral, and if approved a loan agreement (recorded at Goodhue County).
The fund made one loan for $42,000 in October 2005. The loan was paid off in 2018. The original ten-year loan payback took thirteen, including gaps in payments. After working with the borrower, dropping significant interest, and modifying terms of agreement the original agreement payments resumed. At the end of 2025 the fund has $62,570 cash balance.
The 210 Fund has not been utilized since 2018 but remains an economic development tool for the Wanamingo City Council & EDA. The City received $100,000 in State Funds to create Fund 211 – MIF Revolving Loan. The funds were part of a larger 2018 loan for the Maple Island Creamery warehouse expansion in 2018. The City received $100,000 when the loan was paid back to the State in 2022. The MIF Revolving Loan funds have specific State regulations and processes to how it can be utilized. The 211 Fund cannot be dissolved and can only be utilized for revolving fund loans.
The Council has discussed dissolving Fund 210 - Revolving Fund Loan several times over the last two years. The original Fund 210 – Revolving Fund Loan has a redundancy since the City received $100,000 to create Fund 211 – MIF Revolving Fund Loan. The Council has had discussions on placing the remaining $62,570 in the general fund or utilizing the balance on capital expenditures. No formal vote has taken place as there was no consensus for a course of action. City staff has recommended involving the EDA in any discussion regarding the use or dissolving of the 210 – Revolving Fund Loan. The revolving fund loans are tools of economic development for the EDA to attract and maintain businesses.
At the July budget meeting staff were instructed by the City Council to place Fund 210 – Revolving Fund Loan on the EDA agenda for discussion on the future of the Fund. The EDA should discuss their thoughts on potential future use of 210 – Revolving Fund Loan. Boulton stated that the Council does not intend that the EDA decide at the August meeting. The EDA can discuss and place the item on a future meeting (December) agenda. The goal would be to have a recommended course of action by the time of audit field work for the 2026 audit in February. If a recommendation to dissolve occurs by both the Council and EDA (potentially January 2027) the 2026 Financials (Audit) would transfer the funds to the approved destination. If there is no consensus the 210 – Revolving Fund Loan would remain as is.
Boulton stated most of the members of the EDA were unaware of Fund 210 – Revolving Fund Loan. The EDA would like to review the policies for the 210 – Revolving Fund Loan and Fund 211 – MIF Revolving Fund Loan. The plan is to review the policies for Fund 210 and Fund 211 to compare at the December EDA meeting. The consensus of the EDA was that if Fund 210 – Revolving Fund Loan could be utilized in the future that the Council should not dissolve the fund and transfer the money to another fund.
The candidate filing period for 2026 Wanamingo elections of Mayor (elect one) and City Council (elect two) ran from July 14th – July 28th. Ryan Holmes filed for Mayor while Rebecca Haugen, Jacob Vredenbrug, and Luke William Nelson filed for City Council. These names will appear on the November 3rd General Election ballot.
*Next City Council meeting on 9/14/2026.
Adjourn: At 7:35 PM a motion to adjourn was made by Ohr and seconded by Haugen. Passed 4-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
