CITY OF WANAMINGO
City Council Regular Meeting Monday, December 8, 2025 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Stuart Ohr, Jeremiah Flotterud, and Rebecca Haugen
City Administrator: Michael Boulton
Deputy Clerk: Laurie Musselman
ABSENT: Council: Eric Dierks
ALSO PRESENT: Brad Kennedy, Barney Nesseth, Julie Steberg, Donna Strommen, Jacob Vrenenberg, Hunter Harvell, Beth Haas – Zumbrota News Record, and Goodhue County Deputy John Becklund.
ADOPT AGENDA: Haugen motioned to adopt the agenda, seconded by Ohr. Passed 5-0-0.
CONSENT AGENDA: Dierks motioned, seconded by Haugen. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Winterized various buildings and equipment. Street Sweeper has been gone through, fully serviced and should be ready for next spring. Welded iron plates over holes in hopper, replaced curb broom, and installed two main rubber runners. The machine has been fully washed and greased. Leaf vacuum service and put away for season.
2) Changed out Main Street banners from City logo to holiday theme
3) Put up Christmas/Holiday snowflake lights on Main Street light poles
4) Put away Main Street Park benches and garbage cans
5) Plowed snow and salt/sanded streets after snow events
6) Burned tree brush pile for the first time since July. Worked with Mead Johnson to burn when plant production was shut down.
7) Started working on creating ice for ice rink.
B) Barney Nesseth reported on:
1) Requested that the City rescind Wanamingo Code of Ordinances 111.05(B) – Seller/Server training requirement as part of Liquor Licensing.
2) Training was originally free with grants offered through SHIP (Statewide Health Improvement Partnership) funding when the ordinance was approved in 2007. The cost is now $34.95/employee plus having to pay the employee for two hours of work.
3) What does the required training do? If the liquor establishment overserves someone or serves to a minor the liability in on the establishment and not the City. It is in the best interest of the establishment to train staff. However, the required training to obtain certificates costs money. This training could be completed in-house by the establishment. Staff turnover has occurred regularly over the past five years. Every time I hire new staff, the new staff are required to complete the training.
4) New government costs for 2026 are overwhelming all business. Liquor/restaurant businesses face significantly higher insurance, restaurant licensing fee increases, liability insurance increase, safe/sick time, higher property taxes, minimum wage increase, Paid Family & Medical Leave. Total new costs from 2025 to 2026 - $5,105.
Holmes asked of the seller/server training is required or provided a premium reduction by certifying completion. Nesseth said no. Nesseth stated that bartenders/owners are required to take the training and provide certificates of completion. Wanamingo Fire Relief Association completes training once per year. Could piggyback on training but does not help when new staff are hired mid-year. Flotterud asked for the item to be placed on the January City Council and that Boulton and David Jacobsen review the ordinance.
NEW BUSINESS:
Public Hearing - Mayor Holmes opened the 2026 Budget & Levy Public Hearing at 7:12PM. Administrator Boulton provided a written memo of the Proposed Final 2026 Budget, budgeting and levy process. The overall levy is set to increase 5.13% from $1,170,000 to $1,230,000. There are concerns from staff that a proposed 5.13% levy increase along with other revenues may not be enough to cover expenses due to additional inflation, capital needs, or upcoming unknown expenses. The Caseys remodel increased its taxable value by an estimated $15,000 in 2024. This would bring in roughly $615 (slightly less than half City portion) in property taxes (0.041). New construction within the community over the last year (3 new taxable homes in 2024) should aid with the increase to the taxable market value increase. The new construction should offset roughly 1/10 of the proposed levy increase (0.5% of the proposed 5.13% increase). In 2027, Dollar General new commercial building ($956,000 valuation), Jake’s Hometown Liquor renovation, potential commercial (Jason Grant’s proposed warehouse), Reckitt-Mead Johnson expansion, and other discussed commercial expansions) projects, and additional residential growth (8 new homes as of December 2nd) will continue to expand the tax base. Goodhue County calculated the 2026 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 $1,568,304 (includes TIF) to $1,601,013 (Includes TIF) a 2.08% increase. Wanamingo Market Value will go from $140,211,100 to $144,035,925 or a 2.72% increase. The tax pool (what the levy gets divided out by) will go from $1,556,728 to $1,601,013 or a 2.84% increase. The tax rate is proposed to go from 75.044 to 76.826 or an increase of 1.782%. The Wanamingo City Council proposed levy increase to $1,230,000 will have a net increase on tax rates. Administrator Boulton received additional data to show potential changes to homeowners’ property taxes with the proposed levy (roughly an increase of $12.79 for $100,000 value, an increase of $22.50 for $150,000 value, an increase of $32.21 for $200,000 value, an increase of $41.92 for $250,000, and an increase of $51.64 for $300,000 value City portion of a property tax increase per year). This depends on home valuation changes from the past year. Most homes saw a 3%-4% increase in valuations from 2024 to 2025. This would show changes on the low end of value increases to roughly $40 for $100,000 home, $60 for a $150,000 valued home, $75 for a $200,000 value home, $90 increase for $250,00, and $105 for a $300,000 value home. It would show increases of $45 for $100,000, $65 for $150,000 value, an increase of $80 for $200,000 value, an increase of $95 for $250,000, and an increase of $110 for a $300,000 value City portion of a property tax increase per year) on the high end. The new commercial and residential growth in 2024 helps offset the levy increase from going onto existing property owners. Boulton stated that LGA is proposed to increase from $302,415 in 2025 to $302,649 in 2026. Boulton stated that 59% of the general fund revenue comes from the property tax levy. The other areas of the general fund revenue do either increase or decrease slightly. This means that the levy shares a higher percentage of the burden each year. Boulton stated that inflation continues to make general fund budgeting difficult in 2026, like the last five years. Boulton stated that increases to ambulance contract, policing contract, fire, salaries, changing deputy clerk position from ¾ to full time, health insurance, elections in 2026, street maintenance, and future capital needs are putting pressure on the general fund. Boulton stated that basic City operation costs continue to rise. Boulton stated that in addition, infrastructure and equipment needs over the next few years put the City in a tough position in attempting to keep levy increases low. The Riverside Park curb and parking lot rehab work is estimated to cost $200,000. $150,000 is planned to be spent out of the 336 Fund while the remainder of $50,000 will come out of the Street Capital budget (out of $80,000 in 2026). A portion of Emerald Valley II Addition is planned to be completed by the developer. The City will be upfronting the cost with reimbursement from the developer and while a special assessment will be levied onto a separate parcel(s) owner. The City is projected to have $16,153.99 in direct costs on the project. These direct costs will come from the of General Fund. The total cost of the project is estimated at $416,500. The City will be carrying out these costs until these are either reimbursed or paid for through special assessments by the property owners. These financing funds have not been budgeted and are expected to come from existing funds such as General Fund. Boulton stated that the City needs additional growth to help offset these levy increases moving forward. Boulton stated that the City general fund yearly expenditures have increased from roughly $730,000 in 2020 to $1,050,000 in 2026 (roughly 5% increase per year). The fund balance policy is 35%-65% or $650,000, whichever is higher. A general fund reserve balance of $500,000 is 47.57% while $650,000 is 61.84%. The general fund had $592,529 balance with the 12/31/2024 financials which was 58% reserve. Holmes stated that public safety is the largest increase in the general fund spending from 2025 to 2026. Flotterud stated that the County is holding the City hostage on policing contract with minimum number of hours required. Flotterud disagrees with the concept of budgeting a surplus. Boulton stated as the general fund expenses grow, the percentage of fund balance reserve decreases. Best budgeting practices are to keep up with the reserve balance percentage of 35%-65%, or $650,000, whichever is higher. Flotterud suggested transferring the $62,570 out of the Revolving Fund Loan fund. Boulton suggested a conversation with the EDA on the Revolving Fund Loan fund as this is one of their tools for development. Holmes agreed that any discussions on the revolving fund loan should involve the EDA. Flotterud asked what spending had and would occur out of Fund 216 and Fund 336. Boulton stated that the City spent roughly $196,000 in 2025 on the Street Shop Rehab project and $90,000 on the mini front-end loader. Boulton stated that Fund 216 will be down to $0 while Fund 336 will have small balance ($25,000) at the end of 2025. Boulton stated that the plan is to utilize the $175,000 in 2026 and $150,000 in 2027 from the 336 Fund on the Riverside Park parking lot (estimated at $200,000) and pickleball court (estimated at $125,000) projects were discussed for 2026/2027 out of the 336 Fund. Boulton stated that a street reconstruction project could take place in 2027/2028. The 336 Fund $150,000 would cover the yearly bond project on a $1.5 million project. Boulton stated that Wanamingo’s proposed property tax increase is lower than the State average for cities (8.7%). Boulton stated that Wanamingo’s current and proposed tax rate is lower than Pine Island and Kenyon, and similar to Red Wing, but higher than Cannon Falls, Goodhue, and Zumbrota. Boulton stated that 39% of the City tax levy is for debt service to pay back past bonds. The City’s debt is higher than most communities. Boulton stated that Emerald Valley Phase II engineering will take place this winter along with re-plating. The project would go to bids in the spring. If the bids are favorable construction will occur in summer/fall 2026. The City will be leading the projects while special assessing the benefiting property owners the cost. The benefiting property owners have signed petition and waiver agreements, pending consultation on the bid cost. Boulton stated that this was not budgeted and would need to come from cash reserves. Flotterud stated that the City financial position was better than a few years ago and that the equipment is in good shape. Ohr stated that there are several pieces of equipment and building needs coming. Ohr stated that the older pay loader repairs and snowplow replacement are very large expenses. Ohe stated that the pay loader repairs could run more than $50,000. Kennedy stated that the older pay loader snowplow may not be able to be repaired in the future and will need to be replaced ($50,000). Ohr stated that the swimming pool repairs keep adding up to keep the facility working. The repairs to the broken line were minimal. Flotterud stated that once the pool can no longer be repaired the City would more than likely never build another one. Flotterud stated that the operation costs could be shifted to park improvements at that time. Kennedy stated that equipment such as the leaf vacuum, sewer jetter, Ford tractor, future mini payloader/skid loader replacement, 2000 Chevrolet one ton, and street sweeper are in similar positions to the snowplow. Kennedy stated that staff will keep equipment running as long as possible. Kennedy stated that the council should be ready to replace as they fail, which include budgeting/planning. Boulton projected the 2027 levy to be around 7%, with today’s snapshot projections. Holmes thanked everyone for the input on the 2026 budget, which in turn affects the levy. Mayor Holmes closed the public hearing at 7:36PM.
RESOLUTION:
25-087 = Adopting Final 2026 Budget: Flotterud moved to approve, Seconded by Dierks. Passed 5-0-0.
25-088 = Certifying Final Tax Levy for 2026: Haugen moved to approve, Seconded by Dierks. Flotterud suggest dropping the increase by $20,000m, to $1,210,000. Ohr stated that the Council had already reduced the increase from 7% to 5% in July. Ohr stated that reducing the proposed 2026 levy delays future capital projects. The 2025 levy would go from $1,170,000 to $1,230,000 ($60,000 increase or 5.13%). Passed 4-1-0 (Flotterud No).
25-089 = Approving Fire Department Budget & Township Budget Contract Allocation Formula for 2026:
Ohr moved to approve, Seconded by Flotterud. Passed 5-0-0.
25-090 = Approving Licenses (Tobacco & Liquor) for 2026: Dierks moved to approve, Seconded by Ohr. Passed 5-0-0.
25-091 = Adopting 2026 1st Quarter Maintenance Work Plan: Ohr moved to approve, Seconded by Haugen. Passed 5-0-0.
25-092 = Approving Smith Schafer Engagement Letter for 2025 Audit: Flotterud moved to approve, Seconded by Ohr. Passed 5-0-0.
25-093 = To Not Waive the Monetary Limits on Tort Liability Established by Minnesota Statutes 466.04:
Flotterud moved to approve, seconded by Ohr. Passed 5-0-0.
25-094 = Approving a Land Lease Agreement with Kenyon-Wanamingo School District, No. 2172, for the Operation of an Ice Rink and Warming House: Haugen moved to approve, seconded by Dierks. Passed 5-0-0.
25-095 = Approving a Proposed Billing Change to the City/EDA Civil Attorney Services From Jacobsen Law Firm, P.A.: Haugen moved to approve, seconded by Flotterud. Passed 5-0-0.
25-096 = Accepting Wanamingo Fire Relief Association Charitable Gambling Donation and Designating the Funds to the 333 Equipment Fund: Ohr moved to approve, seconded by Haugen. Boulton stated that the Fire Relief Association has indicated that they plan to donate at least $45,000 to the City from 2025 charitable gambling. Passed 5-0-0.
Ordinance #214 - 2026 Fee Schedule – 1st Reading – Mayor Holmes went over the recommended changes from 2025 Fee Schedule for the proposed 2026 fee schedule including increasing Deputy Clerk labor from $45/hour to $47/hour, increasing Public Works Labor from $45/hour to $47/hour, increasing City Administrator Labor from $60/hour to $62/hour, increasing dump truck from $65/hour to $85/hour, removing grader from the list, removing skid loader from list, adding compact wheel loader at $90/hour, increasing the sewer hook-up from $750 to $800, increasing water meter cost from $370 to $380, increasing the MN Water User Fee from $0.82/month to $1.30/month, increasing the sewer debt service/base fee from $32.00/month to $34.00/month, increasing the monthly garbage fee from $19.11/month to $20.06/month, and increasing the monthly recycling fee from $7.35/month to $7.64/month. 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 $14,000 in new revenue in 2026. The monthly garbage and recycling increase reflects the yearly new contract with Highland Sanitation. 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 soon which could cost millions of dollars. 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:
Administrator Boulton provided a 2025 Economic Development for the City. 2025 saw the best growth in both volume and valuation of building permits in the past five years. The growth is seen in both residential and commercial sectors. There is continued concern with inflation continuing to hurt the local economy. Inflation, coupled with elevated Fed’s rates seem to keep growth slower than what the market can handle in the residential housing market. The commercial work, new homes, and valuation increases will increase the City of Wanamingo tax base.
Dollar General ($956,000) was a new major commercial building expansion in 2025. There were a couple of commercial small renovation projects such as Core824 (Former Kenyon-Wanamingo School Building), Jake’s Hometown Liquor (Bar), the Mead Johnson locker room ($273,000) and new affluent building project ($400,000), and four other projects. The Core824 project includes the formation of TIF 3-2. TIF 3-2 is a redevelopment project that will pay out a business subsidy on future property tax increment of no more than $525,000 over the next twenty-five (25) years.
In the residential side we have seen eight (8) new home building permits issued in 2025. The eight homes have a collective building permit valuation of $1,569,000. The eight (8) units are considered above average year of residential growth in Wanamingo. There have also been a number of new garages, decks, mechanical work, new windows/doors, re-roofing’s, and other home improvement building permits in 2025.
The 2022 Utility Improvements Project was finished in 2025. The new well house punch list items were completed in 2025. The total cost of the project was $2.8 million (including new water tower). The City continues to work on reducing ground water inflow and infiltration. The City completed smoke testing all the manholes to check for leaks and cross connections in 2024. The program discovered two (2) broken manhole collars, nine (9) open pick holes on manhole covers, six (6) broken cleanouts, and one (1) open valve from equalization basin. City staff repaired six (6) damaged sewer line cleanouts that showed up in the smoke testing. The City completed the sump pump inspection program. The program helped to ensure that there are no illegal connections to the sanitary sewer system. The program discovered thirty-eight (38) failures, including eight (8) beaver systems to the sanitary, fourteen (14) flex hoses, nine (9) sump pumps into sanitary, and seven (7) pits with no sump pump. Corrections have been made to nearly all of the failures. There are currently four (4) properties that either did not schedule an inspection or failed the initial inspection that are being charged a $100 monthly fee on the utility bill. The City completed a water service line shut-off valve GPS locating and material identification program required by the MPCA. The material identification program’s goal is to eventually replace all lead and galvanized piping. The mapping of water service valve locations helps to find easily shut-offs in case of emergencies. The City spent roughly $57,500 on repairing leaking water valves, replacing sewer services, installing a water service, asphalt patching, site restoration, and concrete replacement work in 2025. The City obtained a $3,000 grant for a new basketball hoop that was installed at Prairie Ridge Estates Park in 2025. The City completed the street shop building rehab project in 2025. The rehab work included roofing, siding, service doors, windows, overhead doors, gutters/downspouts, ventilation system, spot concrete work, and electrical work. The total cost of the project was roughly $196,000.
2026 looks to have additional planned private and public work. Jessup DeCook will be completing Prairie Ridge Estates 5th Addition. Prairie Ridge 5th Addition is an eleven (11) lot residential development within the center of a previously unplatted portion of Prairie Ridge Estates. The City Council approved petition and waiver agreements with the property owners looking to move forward with public improvements to the Emerald Valley Phase II. The City will pay the upfront cost while the benefiting property owners will either directly reimburse the City or be special assessed their share of the project costs. The City approved professional service agreements with WHKS for replatting along with engineering and inspection for Emerald Valley Phase II. Emerald Valley Phase II has conceptual plans for sixteen (16) lot residential development. The plans will be presented to the City Council in late winter with competitive bidding process taking place after the plana are approval. The tentative plan is to move forward with construction in summer 2026 for the public improvements (water/sewer service installations, stormwater improvements, and roadway improvements). The City Council has tentative plans for Riverside Park parking lot reconstruction project in 2026. This depends on the total carrying costs for Emerald Valley Phase II and any potential to shift to utilizing the funds for the planned pickleball/ice hockey project. Both the parking lot reconstruction and pickleball/ice hockey projects depend on timing of other work and budget constraints, but should both be completed by the end of 2027. Jason Grant Trucking is still looking at a cold storage warehouse in the industrial park. Jason Grant is held up by current high construction and interest rates. Reckitt/Mead Johnson has conceptual plans for building expansion along with traffic, parking lot, building expansion, and other outside esthetic improvements. There continues to be interest in residential single-family dwellings. City Staff anticipate continued residential construction in 2026 especially if the Federal Reserve cuts interest rates. The City has been working with Zumbrota, Pine Island, Goodhue regarding a regional wastewater treatment facility. The City received $10 million from the State for pre-design and land acquisition for the facility. The Cities have hired Winthrop & Weinstine lobbyist firm to help obtain State dollars for the next phase of construction. 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 to be financially feasible.
Mayor Holmes wished to send condolences to Bob Gudknecht’s family on his passing. Bob was an important part of the community, serving 56 years on the Wanamingo Fire Department.
*Next City Council meeting on 1/12/2026
*Mayor Holmes and City Administrator will be working on dates to host the annual employee appreciation dinner at Area 57 Café. Administrator Boulton will send out invites to the Council and staff once the date and time have been finalized.
*Fire Department/Township/City Annual Meeting is on 2/2/2026 at 6:30pm
Adjourn: At 8:38 PM a motion to adjourn was made by Ohr and seconded by Flotterud. Passed 5-0-0.
Signed: Attest:
Ryan Holmes, Mayor
Michael Boulton, City Administrator
