CITY OF WANAMINGO
City Council Regular Meeting
Monday, May 11, 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, Jeremiah Flotterud, Rebecca Haugen, and Stuart Ohr
City Administrator: Michael Boulton
Deputy Clerk: Laurie Musselman
ABSENT: None
ALSO PRESENT: Brad Kennedy, Brandon Theobald – WHKS, Peter Grimsrud – Zumbrota News-Record, Dan McPherson, Kali Lenz - CohnReznick, and Goodhue County Deputy Jordan Markegard.
ADOPT AGENDA: Ohr motioned to adopt the agenda, seconded by Haugen. Passed 5-0-0.
CONSENT AGENDA: Dierks motioned, seconded by Flotterud. Passed 5-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Flushed all the hydrants throughout town
2) All the clay sanitary sewer mains were jetted
3) Rented grinder/grader attachment for front end mini pay loader to dig up alleys and grade them out to remove potholes
4) New brackets and banners installed on Main Street light poles
5) Main drive replaced at Well House #3. The well was offline for over a month
6) Automatic Systems assisted in setting up Well #2 to run without the water tower. The system was well programmed to run on pressure.
7) Salt/Sand Shed pressure washed and sealed. Salt was put back in the shed today.
8) Riverside Park – park shelter open, water is on for season, and volleyball nets up.
9) Street sweeper air conditioning compressor has been replaced. The goal is to sweep streets on Thursdays.
10) Prairie Ridge Estates 5th Addition – the concrete curb and gutter was installed over this past weekend
11) Emerald Valley Phase 2 – underground work complete and road is rocked
B) Kali Lenz of CohnReznick reported on:
1) Smith Schafer merged with CohnReznick at the end of 2025. Rochester office and staff stay the same. Staff is learning no programs and procedures to conduct audit in the CohnReznick format.
2) Conducted a presentation of the 2025 Wanamingo City Audit
3) No large (State or Federal) single audit required for 2025
4) There is limited segregation of duties in the small office – yearly recommendation for small staff communities. This is not possible with a small office staff.
5) The audit completion letter showed no disagreements with management
6) Paid down $487,000 of debt in 2025
7) Medical Center automatic payment was taken out after January 1, 2026. No bond payment reflecting in 2025. There could be two payments made in 2026 or a future year.
8) The general fund showed a $10,501 deficit in 2025 and has a $582,028 balance. This will decrease the reserve balance from 58% to 50%. There was unplanned capital spending on mini front end pay loader. Property tax levy is 61% of the general, LGA is 16% of the general fund, why other revenue sources such as charges for services, other governmental aid, fines, and miscellaneous account for the rest of the general fund revenue. General Fund expenditures – 16% general government, 27% public safety, 40% public works, and 17% culture and recreation. There were revenues of roughly $95,000 from investments that were spread out among the general, capital, bond, and enterprise funds. Water Fund showed a decrease in cash from $60,670 to -$58,768 at the end of 2024. The funds were spent down as part of 2022 Utility Improvements project along with were line repairs. Sewer Fund showed an increase in cash of $93,086 while having $787,450 in cash at the end of 2025.
9) Recommend keeping an eye on water and sewer billing rates so that they keep up with operational costs and future capital needs.
Holmes asked if the City is keeping up with utility rates. Lenz stated that it depends on needs and expenses for the current and future years of the City. Lenz stated that the water fund fell behind due to completing the large capital project (unforeseen State required project expenses) along with unanticipated water leak repairs. Lenz stated that the fund should be back into a positive balance in the next couple of years.
NEW BUSINESS:
RESOLUTION:
26-025 = Accepting the 2025 Wanamingo Audit: Ohr moved to approve, seconded by Haugen. Flotterud expressed frustration with the General Fund showing only a $10,000 deficit. Flotterud stated that the $87,000 front end pay loader was not planned for purchase in 2025 but occurred due to past skid loader proposed lease more than doubling. Flotterud stated that the General Fund would have had a $77,000 surplus. Flotterud also had concerns about the remaining balance in bond payment funds that were transferred to the general fund after being paid off ($37,191 – Fund 306 and $12,460 – Fund 331). Boulton stated that the Council agreed to pull back part of the street capital budget (roughly $20,000) for street maintenance when deciding to purchase a front end pay loader. Boulton stated that the Council had already budgeted $6,500 toward the lease that was not renewed for the skid loader that went toward the front end pay loader purchase. Boulton stated that the Council approved a budget with a $30,675 General Fund surplus to build the balance. Boulton stated that bond funds should have a small residual, but that Fund 306 was too high. Flotterud agreed that retired bond funds should have a slight surplus but was disappointed in the amount left in Fund 306. Flotterud stated that he would have advocated for a lower 2025 property tax levy if he knew that Fund 306 would have ended with a significant balance. Flotterud stated his disagreement with the General Fund reserve balance policy and that the City should have less reserves. Ohr stated that the City ended 2025 in good financial shape and that budgeting only gets you so far until the actual bills come due. Passed 5-0-0.
26-028 = Accepting 2025 Yearly Driver's License Checks for City Employees: Dierks moved to approve, seconded by Ohr. Boulton stated that there were no concerns from staff, fire department, Council, or EDA members’ licenses (anyone that might drive a City vehicle). Passed 5-0-0.
26-029 = Setting Swimming Pool Fees and Schedule for the 2026 Season: Haugen moved to approve, seconded by Flotterud. Boulton stated that Jake Wieme, pool manager, could not attend the meeting to provide an update to the Council. Boulton stated that the pool is scheduled to open June 1st. Sixteen guards have been offered positions for the season. Thirteen guards are returning from 2025 while three of the guards are new. City of Zumbrota pool will not be open in 2026 due to construction of a new pool. Session I of swimming lessons will be June 8th-18th while session II will be June 29th-July 9th. Lessons will be limited to five students per session. There are expected to be four staff with formal WSI (Water Safety Instructor) training. The lifeguard in-service day is scheduled for May 29th. The seasonal employee safety training is scheduled for June 8th. There are no recommended changes to the swimming pool fee schedule. Passed 5-0-0.
26-030 = Authorizing a Temporary Liquor License for the Wanamingo Fire Relief Association July 3rd Dance: Ohr moved to approve, Seconded by Dierks. Passed 5-0-0.
26-031 = Approving Pay Request No. 2 For TK Contracting on Emerald Valley 2 Subdivision: Haugen moved to approve, Seconded by Ohr. Theobald stated that the utility work is complete, the road is rocked, and the concrete work for the curb and gutter is coming. The project is 68%. The total pay estimate is $171,862.60. Theobald stated that the new plat is ready to sign and record. Passed 5-0-0.
26-032 = Approving a Professional Service Agreement Between the City of Wanamingo and WHKS for the Purposes of Design, Bid, and Construction Phase Engineering Service for Lead and Galvanized Water Service Line Replacement: Flotterud moved to approve, seconded by Dierks. Theobald stated that the removal of lead in water lines action plan started with the Flint, Michigan issues in 2024. Th Federal government required all governments to inventory and identify water service line materials, looking for lead and galvanized pipes. The City of Wanamingo identified potentially ten galvanized (no lead) services. The City applied and received up to a $250,000 grant from Minnesota Public Facilities Authority to remove and replace the galvanized services. Construction would occur in 2026/2027. Theobald stated that this work nationwide and the SE MN has too much work for the number of contractors to complete in one year. Theobald stated that WHKS is working on template agreements between the City and homeowners with galvanized lines. The agreements would lay out responsibility and warranty period for the work. Ohr asked if the service lines would be completed through boring. Theobald stated that they would more than likely be completed through pipe burst, potholing points in between the watermain and house. Theobald stated that the City would bring in a plumber for pipe connection work and concrete floor repairs in house basements. Flotterud asked if homeowners could opt out. Theobald stated that homeowners could opt out but would be required to sign off on an agreement as a waiver to the City. Theobald stated that this would then trigger a disclosure at point of sale for the property of a potential lead/galvanized water service line. Passed 5-0-0.
OLD BUSINESS:
Administrator Boulton provided an investment of funds memo. The City of Wanamingo has a CD (Certificate of Deposit), created in 2025 with $109,884.76, that yielded a 4.5% interest for 12 months. Rates have decreased from 2025 to 2026. The City was able to shop around for interest rates to push Security State Bank to match a 12-month 3.75% CD.
The matured CD is now worth $114,550.44. The new CD, through Security State Bank, is a 12-month special rate CD for 3.75%. This will net $4,295.64 in interest in the next 12 months.
The interest earned will be accounted for under most fund accounts, including the general fund. These investments should leave plenty of funds for cash flow in checking. The checking account, new CD’s, the current CD, and money market funds diversify the City investments.
Boulton, Theobald, and Holmes provided an update on the Emerald Valley stormwater ponds and piping easement negotiation with Randy and Trish Amundson. Theobald stated that a meeting is scheduled for May 12th after weeks of scheduling. Holmes and Theobald will be attending the meeting to discuss the request for easements. Theobald stated that the rough area needed is 1.2 acres for the two north stormwater ponds and 15’ piping to the North Zumbro River. The City has been working in good faith toward an agreement for an easement. Theobald stated that City has explored condemnation with an attorney from Kennedy & Graven. Condemnation carries appraisal, attorney, and eventual settlement costs. There could be attorney costs involved for the property owner in the condemnation process. Making a deal is in the best interest of both parties to keep costs down. The City has a $5,000 offer on the table for the easements. Ohr stated that he was not inclined to offer more than $5,000 for easements and unwilling to purchase land. Flotterud shared his concerns with Amundson’s unwilling to counteroffer and only shared vague statements of City purchasing land. Flotterud stated that the Council has no use for land. Flotterud asked if land could be developed. Boulton stated one small portion on the north side could be developed but the property lacks access (one 20’ easement) and that it could only benefit if McPherson’s would replat area for roadway access. Theobald stated that this would be a costly process compared to value of lots. Flotterud wonders if Amundson’s understand what the City is asking and that the City can proceed with condemnation to obtain the easement if a reasonable agreement is not reached. Holmes stated that the City would have to show a public purpose test to purchase land which makes any counteroffer to purchase difficult for the City to meet. McPherson stated that he is not going to build until an easement is obtained and the stormwater pipe is connected, even if Emerald Valley Phase II utility and roadway improvements are complete. McPherson stated that he could wait until the issue is resolved. Flotterud stated that it will be great to obtain a counteroffer from Amundson’s and bring it back to the City Council. Haugen expressed her concern in the past three months not knowing what Amundson’s want, especially with the City having now made two offers and accepted requested conditions on a potential easement. Theobald stated that if there is no response to offer or no counteroffer is made that the City should consider condemnation. Theobald stated that the stormwater ponds and piping are servicing public drainage of the Emerald Valley development.
Dierks asked about the status of the pedestrian walking bridge ramp repairs. Boulton stated that the low quote for repairs had been approved in July 2025. The City has been working with the low quote contractor, Kleese Construction, to order the materials and schedule the repairs. Due to supply distributor and scheduling timing Kleese has not been able to complete the work or guarantee a completion date. City Staff and Kleese Construction mutually agreed to terminate the agreement for the repairs on 5/11/2026. City staff contacted the 2nd lowest quote bidder, Homestead Restoration, who agreed to take on the job. Homestead Restoration has checked into ordering supplies, which are roughly 60 days out. Homestead Restoration has guaranteed that work will be completed by September 1, 2026.
*Next City Council meeting on 6/8/2026 at 7:00pm. There will be a tour of the fire hall and future capital needs discussion after the business portion of the meeting is complete.
Adjourn: At 8:21PM a motion to adjourn was made by Dierks and seconded by Flotterud. Passed 5-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
