CITY OF WANAMINGO
City Council Regular Meeting
Monday, December 13, 2021 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Larry VanDeWalker, Stuart Ohr, Eric Dierks, and Jeremiah Flotterud
Deputy Clerk: Karen Masters
ABSENT: City Administrator: Michael Boulton
ALSO PRESENT: Brad Kennedy, Brandon Theobald – WHKS, and David Friese – News Record.
ADOPT AGENDA: Dierks motioned to adopt the amended agenda, seconded by Flotterud. Passed 5-0-0.
CONSENT AGENDA: Ohr motioned, seconded by VanDeWalker. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Cleaned up brush around Diamond Path manholes and MN HWY 60 retention pond outlet
2) Jetted 2nd Avenue, between 5th Street E and Beverly Street, sanitary sewer line. There were issues with one of the homeowner’s sewer service lines
3) Put up Christmas/Holiday lights and banners on Main Street
4) Cleaned leaves out of storm sewer catch basins around town by sucking the leaves with vacuum
5) Replaced 22 new water meters around town. Hoping to replace 20 per month to complete the entire town in two years
6) Purchased new saw and blades for water line repairs in early fall and it was just delivered
7) Finished getting snow equipment ready for season
8) Put away the park benches and garbage containers located on the Main Street sidewalks for snow season
Flotterud asked when the maintenance staff will be working on the ice rink. Kennedy stated that water would be sprayed on the rink area to make ice as soon as the weather is cold enough to keep frozen. Flotterud asked what the progress was on the MPCA Letter response items. Holmes and Kennedy stated that they had attended a meeting with Administrator Boulton and City Attorney David Jacobsen to formulate a plan to implement the response items. Jacobsen is drafting changes to the Wanamingo Code of Ordnances and current City policies. Holmes stated that this process could take time unless the City wishes hire an outside attorney to complete this faster.
B) Brandon Theobald of WHKS reported on:
1) Presented the Cenex Water Tower portion of the 2022 Utility Improvements bids
2) Three bids were received from Caldwell Tanks, Inc., Maguire Iron, Inc., and Gerard Tank & Steel Inc.
3) Caldwell Tanks Inc. was the low bidder at $1,268,000 plus the $10,000 City Logo paint option
4) The City Engineer’s estimate is $1,250,000 plus the $10,000 City Logo paint option
5) Recommend awarding Caldwell Tanks, Inc. the water tower portion of the bid
6) Stated that WHKS had worked with Caldwell Tanks, Inc. in the past and have a good working relationship
7) Plans and Specifications for the well house and water main looping portions of the 2022 Utility Improvements will be presented to the City Council with request to go to bid in January. Bidding would then take place in February.
VanDeWalker, Flotterud, Dierks, and Ohr stated that they wished to include the City Logo paint option included. Theobald stated that the option is included in Wanamingo Resolution 21-089 for Council consideration later in the meeting. Flotterud asked about placing the Kenyon-Wanamingo Knights logo on the tower. Theobald stated that the logo could be added but may clash with current color scheme of the City logo. VanDeWalker asked how long the current paint job of the tower and proposed logo would last. Theobald stated that the paint job and logo would last roughly 20 years. Flotterud asked what the cost for lights at the tower would be. Theobald stated that specific estimates had not been put together since initial look at costs exceed $50,000. Theobald stated that he and Boulton had concluded that the costs exceeded the proposed project scope. Council asked that Theobald provide the Council estimates for lights as an academic exercise to know what costs would be even if they are not financially feasible with the project. Ohr asked if there would be storage space at the base of the tower. Theobald stated that the proposed tower would not have storage space as other larger scale versions of this style tower have at the base.
NEW BUSINESS:
RESOLUTION:
Public Hearing - Mayor Holmes opened the 2022 Budget & Levy Public Hearing at 7:15PM. Administrator Boulton provided a written memo of the Preliminary/Proposed 2021 Budget, budgeting and levy process. The overall levy is proposed to increase 6.50% from $845,000 to $900,000. The new Concast addition now has a taxable value of $276,700. This would bring in roughly $11,344.70 (slightly less than half City portion) in property taxes (0.041). Jeff Benson’s new storage building has a taxable value of $142,800. This would bring in roughly $5,854.80 (slightly less than half City portion in property taxes (0.041). Jason Grant Trucking new truck shop building has a taxable value of $142,200. This would bring in roughly $5,830.20 (slightly less than half City portion in property taxes (0.041). New construction within the community over the last six years (15 new taxable homes in 2020) will aid with the increase to the taxable market value increase. The new construction will off-set roughly 2/3’s of the proposed levy increase (3.5% of the proposed 6.50% increase). In 2023 the DET Properties LLC (Marcstone) expansion and addition residential growth (10 new homes in 2021) will continue to expand the tax base. Goodhue County calculated the 2022 tax capacity numbers based on the proposed levy and new valuation figured into tax capacity and taxable market values. Wanamingo tax capacity will go from $1,083,296 (includes TIF) to $1,141,146 (Includes TIF) or an 5.34% increase. Wanamingo Market Value will go from $100,837,900 to $106,000,200 or an 5.11% increase. The tax pool (what the levy gets divided out by) will go from $1,017,990 to $1,075,840 or an 5.68% increase. The tax rate is proposed to go from 83.163 to 83.655 or an increase of 0.492%. The Wanamingo City Council proposed levy increase to $900,000 will have a slight net increase on tax rates. Homeowners and business owners will see slight increases in their City portion of their tax rates. The increase in 2022 valuations (Roughly 5.34%) of a property will have a minor impact on actual City portion of tax dollars that each property will pay in 2022. This will mean City portion of property taxes currently paid per $100,000 valuation will increase based on the value of the increase in value. Mayor Holmes stated that there are still concerns with inflation pushing the costs higher than expected. Holmes stated that Boulton would be closely watching the budget in 2022 to ensure that current expected expenses do not exceed the projected revenue due to inflation. Ohr asked how much was budgeted for the Prairie Ridge Estates Park shelter improvements. Mayor Holmes stated that the budget includes up to $15,000 for the Prairie Ridge Estates Park shelter improvements. Flotterud stated that he was comfortable with making the proposed $55,000 (6.5%) increase to the levy due to the small effect on property taxes. VanDeWalker stated his desire to keep up staff wages with inflation for 2023. VanDeWalker stated that he was comfortable with the proposed levy. Holmes stated that he would support the proposed levy as the final levy. Mayor Holmes closed the public hearing at 7:22PM.
RESOLUTION:
21-082 = Adopting Final 2022 Budget: Flotterud moved to approve, Seconded by Ohr. Passed 5-0-0.
21-083 = Certifying Final Tax Levy for 2022: Ohr moved to approve, Seconded by VanDeWalker. The 2022 levy would go from $845,000 to $900,000 ($55,000 increase or 6.5%). Passed 5-0-0.
21-084 = Approving Fire Department Budget & Township Budget Contract Allocation Formula for 2022: Dierks moved to approve, Seconded by Flotterud. Passed 5-0-0.
21-085 = Approving Licenses (Cigarette & Liquor) for 2022: Ohr moved to approve, Seconded by Dierks. Mayor Holmes reminded that Council that the tobacco license is being recommended to increase from $40/year to $50/year. Passed 5-0-0.
21-086 = Adopting 2022 1st Quarter Maintenance Work Plan: VanDeWalker moved to approve, Seconded by Flotterud. Passed 5-0-0.
21-087 = Approving Smith Schafer Engagement Letter for 2021 Audit: Flotterud moved to approve, Seconded by Ohr. Passed 5-0-0.
21-088 = To Not Waive the Monetary Limits on Tort Liability Established by Minnesota Statutes 466.04: Dierks moved to approve, seconded by Flotterud. Passed 5-0-0.
21-089 = Receiving Bids and Awarding Bid for the Cenex Water Tower Portion of the 2022 Utility Improvements Project: Dierks moved to approve, seconded by VanDeWalker. Passed 5-0-0.
21-090 = Approving a Land Lease Agreement with Kenyon-Wanamingo School District, No. 2172, for the Operation of an Ice Rink and Warming House: VanDeWalker moved to approve, seconded by Flotterud. Passed 5-0-0.
Ordinance #196 - 2022 Fee Schedule – 1st Reading – Mayor Holmes went over the recommended changes from 2021 Fee Schedule for the proposed 2022 fee schedule including increasing the water meter cost from $290 to $315, increasing the cigarette license fee from $40.00 to $50.00, increasing the sewer debt service/base fee from $18.00/month to $20.00/month, increasing the monthly garbage fee from $14.25/month to $15.21/month, and increasing the monthly recycling fee from $6.30/month to $6.45/month. The increase to the cigarette license fee will help to cover actual costs. The increase to the water meter fee helps to cover increases to the actual costs of the water meters and readers. Boulton stated that the proposed monthly sewer base rate/debt service fee increase of $2.00/month to each hook-up would bring in roughly $12,000 in new revenue in 2022. The garbage and recycling monthly increase reflect the yearly contract increases with Waste Management. Throughout the year, including the budgeting process the Council has discussed and has recommended the above changes. The City Auditors recommend that the Council review sewer/water rates and make small adjustments regularly to capture revenue as opposed to large jumps. The wastewater treatment plant will need upgrades in the near future which could cost millions of dollars. The plan is to replace the Mingo View and downtown water towers, a new chemical building, and additional water main looping in 2022 which will cost over $2.5 million. Mayor Holmes asked if the Council wished to see changes made to the proposed fee schedule before the January City Council. No changes were requested.
OLD BUSINESS:
Mayor Holmes went over Administrator Boulton’s 2021 Wanamingo Economic Development Update Memo. 2021 continued to have delays of material and labor shortage from COVID-19. However, 2021 continued the recent trend of growth and improvements throughout the community. The City has seen commercial building additions, a number of new homes, and infrastructure improvements.
Two commercial buildings had expansions or rehabs, Marcstone building expansion and Maple Island building rehab from warehouse to office space. Marcstone’s building has a permit value of $530,000. Maple Island has a permit value of $325,000.
In the residential side we have seen ten (10) new home building permits issued in 2021. The ten homes have a collective building permit valuation of $1,753,000. The ten (10) units is considered a great year of residential growth in Wanamingo. There have also been a number of new decks, a couple of solar arrays, and other home improvement building permits in 2021.
The 2020 US Census numbers were released. Wanamingo had a reasonable high rate of self-enumeration, but nearly fifty (50) housing units in Wanamingo were not counted leaving one hundred (100) or more residents off the final count. The final 2020 US Census has Wanamingo at 1,113 residents, up from 1089 in 2010 (an increase of 24 residents 2.5% increase). The importance of accurate population counts directly affect State and Federal funds to Wanamingo and other government units that aid Wanamingo residents.
2022 has some planned private and public work on the horizon. The City staff are working on a commercial project with Jason Grant Trucking for a warehouse and office. Jason Grant is working on architectural drawings. Grant has purchased two vacant lots from Brian Growth and an EDA owned lot in the industrial park. Mr. Grant split off half of the EDA owned lot and sold it to Hader Farm Trucking. Hader Farm trucking may put in a truck wash. Revland Alignment has been working toward an addition to their building in 2022. City staff have been working with other business owners on commercial expansions that may occur in 2022. There continues to be interest in residential single-family dwellings. City Staff anticipates slowdown of construction in 2022 leading to fewer new homes. The City will be constructing a new water tower, new well house, and additional water line loops in 2022. This project will be bid in phases at the end of 2021 and beginning of 2022. The City has been working with Zumbrota, Pine Island, Goodhue, and Mazeppa regarding a regional wastewater treatment facility. The current wastewater treatment facility is at the end of its life and will need to be replaced within the decade. The feasibility study will be completed at the end of 2021. The City could choose to be part of a regional facility or construct their own facility, depending on funding. Having capacity and reliability in the water and wastewater treatment are keys to allowing for future growth and current sustainability of the community. The North Zumbro Sanitary Sewer District hinges on State funding through the bonding bill and Point Source Implementation grant in order to be financially feasible.
Mayor Holmes provided an update on the North Zumbro Sanitary Sewer District. The Senate Capital Investments Committee was presented the proposed North Zumbro Sanitary Sewer District project on November 24th. Each of the communities have wastewater treatment facilities. The feasibility study showed the costs to be similar in constructing separate plants, however the costs to operate one plant are projecting a $500,000/year savings. The presentation was to construct one sanitary sewer treatment plant with collection system for the Cities of Goodhue, Pine Island, Wanamingo, and Zumbrota. The proposed project is estimated to cost $84 million (including inflation). The request to the State of Minnesota is for $42 million. The assumption is to obtain 25% ($21 million) from Point Source Implementation Grant (PSIG) and the remaining 25% ($21 million) from increased user rates. The plan on user rates is meet and slightly exceed the minimums ($80-$90/month) set by USDA. These minimums are set to qualify for rural development funding. Even though funding is not being requested the rates are an affordability benchmark to show that the local contribution is maximized. The presentation went great and was well received by the senators. They liked the idea of regionalization and long-term savings. The feedback was concern with the size of the request and if the project could be broken up into phases. The committee was reminded that the size of the request was spread out among four communities. It may not be feasible to phase the project. The committee will continue to share our story and work on the project financing moving forward in the 2022 legislative session.
*Next City Council meetings are on 1/10/2022 at 7:00pm.
*City Council discussed employee recognition event, usually held in January. Mayor Holmes and City Administrator are working on dates in mid-January to be hosted at Area 57 café. Administrator Boulton will send out invites to the Council and staff once the date and time have been finalized.
Adjourn: At 8:00 PM a motion to adjourn was made by VanDeWalker and seconded by Flotterud. Passed 5-0-0.
Signed: Attest:
Ryan Holmes, Mayor
Michael Boulton, City Administrator
