Kenyon City Council, October 13, 2026

0:00 43. All right, it's 7 p.m. We're going to call our city council meeting for October 13th through 12th 26 to order. Stand up for recite the pledge of allegiance, please. Pledge allegiance to the flag of the United States of America and to the republic for which it stands.

0:27 One nation under God, indivisible, with liy and justice for all. Scott, will you please do roll call? Sure. Council member Guard here. Council member Helguson here. Council member Bailey here. Mayor Kirchman here. Um, council member Scholander is excused for this evening.

0:49 He had some person he needed to take care of. You also have your engineer, city administrator, administrative assistant, and deputy clerk back there taking the minutes. Roll call is taken, sir. He's up. All right. Do we have any citizen comments off our meeting with today? the name and I'm John Dler equipments and half the law down here you have a tax abatement issue coming up here I want make a couple comments on I took a piece of property that was worth $100,000 made it million and a half told

1:26 multiple times I didn't qualify for a tax pay I don't think that this situation this building in this situation uh it's not increasing any value in land property for the grocery store. I don't think that this tax evasion is a good precedent for the city. There's a lot of businesses in town that are struggling that could use help.

1:47 This is not how to do it. I think I'm opposed to that. I think in my situation, I should have qualified for a tax abatement. Mark Bing told me many many times that I don't qualify because I'm already in business. My property tax are going to go up 10 times what I was paying. That means that you guys are going to get 10 times as much money to help work it.

2:12 But I'm not getting any help. So I think really consider how that go. That's all I got. Thank you. Thank you. Good evening.

2:37 My name is Bill. I'm a lifelong Kenyon resident except for the time I spent at college in Alexandria. I decided to start coming to city council meetings after a Thursday night shaking dice at the BFW and a citizen kept saying the same thing about the city trying to get a reaction out of people. kind of like a ravel rouser.

2:58 I decided to come speak for myself. I understand that states, counties, and cities are struggling right now. At the federal level, the big beautiful bill did very little to help the taxpayers uh with income tax in our community. Unfortunately, what it's done is cut money to states, counties, and cities.

3:21 Therefore, the only option is to cut services or to raise property taxes. As I sat and listened over the past few months to budget, it got me thinking deeper. I printed out years of budgets and have went through them at night and realized that we have somewhat of a spending problem. We have a police department that has three rigs with two full-time cops.

3:47 We should have three, but we don't pay enough. to get a third person in. We have a fireh hall building that is bigger and nicer than Farbo or Rotana with full of new big expensive trucks. Our public works has bought a dump truck that isn't meant for city use.

4:11 It has one of the highest load capacities out there and is only used to move our leaves and from sweeping streets and snow, none of which we haul over five miles to dump. Also, we couldn't even put a file on that truck if we wanted to. The only major department that hasn't spended money foolishly is the one that brings in by far the most income, KMU.

4:41 That brings me to my next concern. As I had the budget spread out comparing them, I wondered or I'm sorry, I wondered since this city administrator, why are we using KMU money like it's general fund money? Why? What's the endgame here? Outsourcing the utilities, too.

5:05 We the citizens and taxpayer of Kenyon know what would happen to our tax or to our electric weights if we lost CMU. Not to mention the power plant gets us right back online if there's a transmission line down. Now for my final issue, city job. In the last 5 years, we've had people retire, people come, people go.

5:30 We have even let people go or have had to resign so they're not fired. I think out of our four most recent terminations, the administration and the council has got it wrong three out of the four cases. Scott has ran off our city workers that are also biplan residents.

5:52 He's talked you all into raises for himself as he has outsourced much of the work that our city administrators have done and required to handle in the past. Also has outsourced many of our city office jobs and has chosen to fill them with part-time job. This hit this hurts our community because typically these people have lived in town and contributed to the local economy.

6:20 As a wife Ben and Effie once told me, you can only pass the same $20 bill around town so many times before it leaves. Unfortunately, that has become us. We have paid the administrator way too much for the work that he now has to do. Meanwhile, we have lost good city staff and experience.

6:42 KMU is running on three guys with little to no experience and is a safety concern. As for the city staff, I think it's ridiculous that we are not paying full-time wage and benefits, so people that live in town can shop in this town. This has always been a cheap Norwegian town.

7:03 Some way we have lost our way on spending money purposely and on equipment we don't need. But when your administration lives out of town and it is the only or and is the only one in town with the new generation Cadillac Escalade, I see where we've lost our way. Thank you, Billy.

7:30 Anybody else? Good evening, uh, city council mayor. Uh, I am Ethan Allen. I'm the state representative here for 19A. Uh, represent the communities of Kenyon, Wamingo, Eric, Strand, Farabo, uh, Warsaw, Morristown, and go all the way to Jamesville.

7:59 So, it covers three different counties between Masa, right? I am a resident of uh of Royal Canyon, Minnesota. And just wanted to stop in to give you just a quick a quick briefing as far as what happened capital the last session and actually over the last year. Um I usually start these things off by apologizing to everybody about what's everybody's currently experiencing for taxes.

8:23 uh what we saw in the 2023 and 2024 sessions uh at the capital passed a lot of unfunded mandates that ended up getting dumped back on a lot of communities like Pen and Wango and the communities I represent. Um it's a lot of good intention in what happened but unfortunately they didn't follow through and take a look at what the true ramifications were of a lot of things that they were passing and unfortunately there wasn't enough money to be able to back up what they wanted to see happen.

8:51 That's why when I got to the capital, one of the first things I focused on is staffing and the kinds of new mandates that were coming down to the capital, which would typically fall back on the shoulders that local taxpayers and local communities. The next thing we had to confront this last session was dealing with the rampant fraud issue of uh of the state cap at the state capital and what was seen on our social services.

9:12 Uh we after five attempts, we finally got an oite the office the inspector general passed uh as a state representative. That doesn't take away our responsibility that we have in order to be able to make sure the books are accurate, making sure that the whistleblowers are being listened to and we're actually following through on everything and making sure that officially funded so we have pro the ability to be able to prosecute the fraudsters and put them in jail where they belong.

9:38 Uh, one of the things that I was able to do is stop bill one particular bill that was coming through that would have arrested local control away from communities like this specifically around zoning. Uh, I heard loud and clear from communities just like this that this is something that was unable. Soon is in your purview and your power and arresting more power away from local communities is not exactly what the state should be in the business or the federal government should be in the business of.

10:04 You're elected just like I am. You're held responsible by your local your local communities. And that's something that I believe very very much in and I want to respect that as much as possible. Uh the other thing that was able to happen because of what I've seen in this community because my children attend school here and uh listening to local police chiefs and and uh sheriff's departments is the uh what had been happening with school buses where the arms hadn't been fully extended, but they were still driving through school buses and putting our children in danger.

10:35 So I wrote a law that basically said once the red lights start flashing, you better stop. And that has basically brought that whole entire uh habit to a close and given more uh uh more of an ability for the police to be able to go after the the individual to violate this law that everybody knows you're not supposed to do. So that and actually this last year was the first bill signed by the governor and was passed unanimously from out of senate along with the house with no one standing up to object to it.

11:06 So, uh, it's one of those things I took a lot of pride in. Uh, the one thing I wanted to address specifically was, uh, this year on the ballot, you're going to see, uh, a, uh, constitutional change that's going to be coming forward. Uh, this constitutional change impacts Kenyon Wanamingo, uh, uh, in a very big way.

11:27 currently out of the school or the school or the public lands trust. They'll receive approximately about 60 bucks a year from that land trust. And what it is is this dates all the way back to the formation of the state of Minnesota. It was something that Abraham Lincoln came forward with. They wanted to have a way to be able to fund our schools without having to put taxpayer dollars into it.

11:49 So there was public lands. Those public lands that are harvesting timber and harvesting uh have mineral rights on it. All that money got put into a trust and set aside in order to give it a built. That trust built over time. What ended up happening is there's a lot of money there. As we were taking a look at it, we had it put through a committee. They had it uh did a deep uh dive analysis on it and figured out that we could actually raise the school the school dispersement from 2.5% all the way to 4.5%.

12:19 So that's what we ended up passing out of the house. But that is a constitutional amendment in our state. That means you as voters have the right to be able to say whether or not you want to see this happen or you don't want to see this happen. In this community, it'll bump you up a little over $100 per pupil per year. So, it's uh nothing to sneeze at, nothing to take a hard look or consideration of.

12:44 So, with that, just keep in mind when that you have your ballot this fall, flip it over. That's where you'll find it. If you vote, if you decide not to vote on it, that is no vote. That's another thing you got to keep in mind. So, do your homework on it. It's uh definitely something that would benefit our local schools. And uh with that, thank you for letting me represent you in your scheme.

13:05 Um that's the one thing I was told when I was elected this position is you're no longer a politician. You're in the business of customer service. That's something I prided myself on. So, with that, is there any questions from the council? No. Thank you for appreciate. I did that good job. Yes. All right. And thank you for your service.

13:28 I truly appreciate it. Thank you. Anybody else? [clears throat] I know I spoke at the fact that I but that's not really what I'm here to talk what

14:04 I think is what I like to ask of the city council is to consider the citizens opinion And I had brought this up there for planning commission meeting, but I looked over there until December something to make a decision back to the developer.

14:26 I'd like to suggest that at the November general election that um something is added to all the citizens to see who is in support who is not in support of them. Um the time to respond. And that would really give the council who is trying to speak for their home a really good finger on the pulse of what the citizens or at least the voting citizens want with um a town or this department.

15:04 That's that's all I have. I I wasn't I was just wondering I wasn't at the other meeting when you t like why why do you I just want to know like why what do you what is I've a lot of different things online where some people aren't in favor of it some people aren't sure and whether I'm the minority or the majority I don't know okay and I just thought if we're if you're representing the the city and their desires in their best interest Um, we could ask the citizen.

15:37 Yeah. Like do a survey or something. Yeah. Just like a poll or something kind of as simple. Maybe are you in favor or and maybe if it is that we're trying to uh raise money for city or increase population, but do you have any suggestions what you would think would be a good idea with the city?

16:00 Well, that would be a mixed result and I don't want to put something like that on because it there might be a suggestion that hasn't been thought of by me. Thank you. Anybody else? All right.

16:22 If not, we'll move on to adopt agenda. Can we get a motion to adopt our agenda, please? I'll make a motion to adopt the agenda. I will second it. All in favor? I. Motion passes to adopt the agenda. Um motion to adopt our consent consent agenda items.

16:45 Make a motion to adopt the consent agenda. Second. All in favor? I. Motion passes. Take presentations, public hearings, and recognitions and full commission. M Mr. Mayor, one second. I'm just looking here. Holly, we didn't get that added to the agenda.

17:07 Or did we? As far as or did I Is there a new one out that I haven't or or the increases for the individuals on the consent? Cy, I'm looking. I don't see it. It's on the one I used. Okay. So, part of the consent agenda has those three in it. Excellent. Okay. I just wanted to make sure because the one I'm looking at I'm not seeing.

17:29 So I wanted to make sure we didn't So So these that you guys have in front of you are part of your consent agenda. Yes, we have that along with the budget. Yep. It's just not listed on mine. So if I could then just for for one second then. Yes. I would like to if Barbara would like to stand up for a second and maybe come to the podium. So, one of the things that you just approved on the consent agenda and what we've tried to do uh with employees here is have the council see who uh they just approved as a new part-time uh administrative assistant starting tomorrow.

18:02 U Barbara went through the interviewing process. She did very well. Some of you may know her uh from what I've gathered or at least know of her and she knows of you, but I still wanted to kind of get her up here. She had a couple words she wanted to say. Uh but as of now, Barbara, the consent agenda is approved and you'll be starting tomorrow. So, all right. So, with that, you have the floor if you'd like to say anything.

18:28 And I raised our kids here. So, thank you very much. Thank you. Thank you. Thanks for coming to the meeting. Appreciate it. Thank you, Mr. Mayor, for that. I just wanted to recognize.

18:53 All right. Moving moving on to the presentations, public hearings, recognition, proclamations. Is there anything you want to speak in that way? All right. Department head updates. Todd keeper got EDA report for us. Good evening, Council Mayor.

19:19 Um, I had this in your packet ahead of time, so you're familiar with this, but I see in the first one, I I omited the date that the house is going to be occupied. U Good County has finally found a family for the Habitat for Humanity, and they are going to be take possession of the home. I was told on December 1. Um, uh, Bob Holly from Good County also, he also thanked me.

19:45 I sent out notices, uh, to, uh, was like seven or eight area newspapers this summer just trying to get the new the word out as much as I could. Um, he did say I definitely increased the activity and we finally found someone to take over the home. That was that's a good thing. Um, the second one I had on there for you is the ETA meeting on was at the September 29th meeting, but it but it's actually been going on for a few months.

20:16 We've been trying to talk about beautifification of downtown. Um, one of the things that Mary Bailey, Chris Mallerie have talked about and they've been doing their due diligence is is talking about downtown lighting. uh how how can we add possibly large pot flower poties, things of that nature just to just to kind of spruce things up a little bit and uh and just make the whole downtown seem more inviting and welcoming.

20:45 Um the you know anytime we look at additional things like that um with you know for available funding that's going to be those going to be things that we need to look at grants u and other assistance in that matter. So, but just to kind of keep it on your radar. Um, I had done uh side improvement projects.

21:06 Um, I first I want to talk about I had a an art person come in, Alejandro Castion, and he resides in Elbert Lee and I was given his name from the Southeast Minnesota Arts Council. He came and spent about four hours with me. We walked around downtown and one of the reasons I wanted him to come is that he also worked um in economic development in Texas in a small community, smaller, larger than Kenyon but still smaller.

21:36 Um and he worked in a in a small business development center. Um, while he had many great ideas, uh, his ideas were large scale and like I've shared him going, I everything sounded great. But, um, and I do think that public art would make a huge difference, but the grand scheme of things was just something that the city of Canyon is not able to is not able to participate in right now because of the funds that were going to be required to do it.

22:06 Um, but it was still a great learning experience as well. The other facade improvement projects in association with public art exhibit is I've been working with um Danny Yan and she does murals all over Minnesota. She was actually had one on.

22:29 One was at the Minnesota State Fair this past year and I was talking with her about the possibility of looking at our vacant storefronts and what if you were able to decorate those storefronts with something that just kind of spruces things up again and and might even catch the attention of people passing by.

22:54 I keep thinking to two years ago at our annual breakfast and I remember one of the comments of we need more boots on the ground. We need more people walking our streets and spending time here with us. And that's one of the things that I would hope could improve that could get people to spend a little more time.

23:15 Um I have been reaching out to the vacant storefronts and I've been talking to them about you know one of the options could be is facade improvement project would help you to make the front of your building look better and then at the same time what if you had the opportunity for a free mural on your window as well and those murals would be a decision on between the artist and the store owner.

23:46 It could be it could be the history of Kenyon. It could be a seasonal theme. Whatever that those are things that they would have to work out individually. So, um, so that's kind of what we're doing right there. The other thing we're doing is involving an uh it with an education component as well. Danny would spend uh she was really excited about the idea of spending a day at the school and being able to meet with other young aspiring artists and being able to share what she does, how she goes about what she does.

24:17 Um and then uh they would have a chance to be able to come out and actually watch her while she is performing her skills. So could be a really great idea. Now if the grant does not go through with CMAC, then this will not take place. But it's based on whether or not the grant is accepted. Um, I've been following up with our facade improvement projects.

24:40 Uh, the only the ones that we are still yet to reimburse our brand belt and the home plate, which I don't know if you've seen that lately, but it looks much better. Um, all seasons think the work is done. I'm just waiting for Mary to get back to me and let me know and we'll process get that process for and then Cameron's hardware.

25:02 with his uh yeah with his project. Um another thing that I've been doing too is communicating with the small business development center. Um Mark Ty is the regional director and what I've been doing is been trying to reach out to him go what can what are the benefits that we could provide for Kenyon businesses that they may not even be aware of.

25:27 And one of the things that I didn't realize is SBDC is funded through taxes. So outside of training opportunities, everything else is a free service. Uh it runs the gamut of everything that they do with it. So what we're doing is working with the messenger and I believe it's Joselyn.

25:50 Jocelyn's going to put together an informative article that's going to go into the messenger kind of explaining what what the small business development center can do educating everyone but at the same time it might catch a business owner who is looking for assistance. It could also be about entrepreneurs who don't know what their next step is to expand or maybe entrepreneurs who have been wanting to take the step to even begin.

26:18 it might be their opportunity to put together a business model. So, that's um that's something that'll be coming about. Um I I do think right now I one of the things I'm going to be bringing up at our next EDA meeting is I think maybe the best thing we can do for our current business owners is really take a look at what are the opportunities for developing a possibly a revolving loan fund.

26:46 Um, I mean for businesses who, you know, when you hear about them having uh rooftops or uh windows or other things that they might be experiencing with their businesses, there could be a way that possibly we as a city or as an EDA could help them out with the loan, help them get through the get through that that uh and have not have to pay um such a large amount of money up front.

27:15 Uh so those are things we're going to talk about next EDA and so I give you an update next month. Um the workforce development center I've been I haven't gotten a response back yet on that. So it's something that we're still trying to also um figure out a way to meet with them and see what are the benefits that they could provide for our workforce center here and also for our current businesses.

27:41 And then powering small Minnesota cities. We have completed the inong process. Um, and what we've done is we now have instead of putting everything into a book that's bound, goes up on the top shelf and sits there, we've got a working documents that are saved to a shared drive.

28:03 But what we're going to do is we're I'm going to work with Holly or whoever I need to about how do we get those on the server for the city. They need to be somewhere that's accessible for city people to be able to use them because I I don't want to trust that just to a shared boulder that down the road may not be accessible. Um and those things are depot park.

28:27 Uh we're looking at um the apron around the building, sidewalks, the picnic shelters, um from the playground and pool to the building, ADA updates to the playground, a walking path around the park and pickle ball courts. Those are the things that were shared with us in our community survey. Those were the three highest ones significantly higher than the others.

28:50 Then there's also the Trundium Trail um with both Ming. We did a walk through and stuff. That's a large ticket item. That's that isn't just something you write a grant for 10 $20,000 be able to do it. That's a substantial one. Um and then there's also the city trails which is based on data from the residents um that we did at last falls uh roast fest and fall yeah uh fall basketball carnival whatever um the people drew on maps to

29:26 try and tell us where what where they felt they needed to lead them to. So those are things that we have in place and those are things that'll be coming down the road in the future. Um Falcon's Investments uh they are at a hold right now because they're waiting on plumbing permits from the state.

29:48 Um Alexander said I've heard that that's common I guess but they they can't proceed until they get the plumbing permits. So they what they've done now is they pretty much put in their parking lot. So till we get something from the state, they're in a hold pattern. Um and today it was really I went over and visited with Michael B of Mingo.

30:11 It was really interesting. Uh the EDA had said, you know what, they've got a lot of homes and housing development going on. Go over and just kind of find out what's going on. So that's information I'll share at our ED next EDA meeting. And so uh I can share those things with you. Thanks. question. Thank you, Todd. Thanks, Todd. All right, moving on to public works.

30:37 Nate, um update on public words. Super probably two to three days a week. Next week we plan on starting burying the roses. Probably do that Tuesday, Wednesday, Thursday.

31:04 Other than that, we have just a little bit of dead finish up this fall switching over the winter mode. Minor things to do with the weight plant for that safety field. We spent a lot of talking about this done a little bit of looking what I found is ordering from Spring Hill are

31:46 from 100 to $130 a piece. probably save 15 or 20. Whatever number we do, we start replacing as we go. Do them all. There's 46. We're going to start on that.

32:18 See how they survive for a year or two. very difficult to find trees all the world's most delicate world. Yeah. Yeah. And I think the key thing is is is I I challenge Nate to see what he could do and he did this in pretty short order to be honest with you and uh and uh we still have a little ways to go to be able to see exactly where that is but where that's going to shake out but I want to thank you for looking into that's exciting.

32:50 I know there's been a lot of discussion around the city and these were all the trees, you know, going back to all trees, right? Um, and taking those shrubs out, but I also want you to take a good look at him because he's your new superintendent of public works. You guys just approved that tonight. Congratulations to you, by the way. Thank you. And unfortunately, because of that, you're going to lose, but but it's worth it.

33:12 You're going to lose trees. What did you say? You will lose some every year. You just will. That's and then and then but here's the other thing is even if you even if they know it's hard to find our zone but even if you like plants just do they just die they get old so that happens too selection yeah and they used to have more you guys have a wholesale account though right yeah I know I know the city's been

33:47 talking also on how we can fund this or something. But there's been suggestions of maybe having members of the community, you know, adopt a rose tree by paying for the purchase of the rose tree. So maybe we can get that out to the public. So yeah, some people have offered that.

34:10 So yeah. Right. Thank you. Thank you. All right. Moving on to policeport. Jeff, good evening everyone. Hi. I'm dressed by PW dad. Nice daughter playing volleyball down right now. Yeah, another one here tonight. So just like this.

34:32 So um real quick, um I'd like to see my daughters. So we had 179 calls for service last month. We're still operating a pre officer from six a year ago trying to provide the best service we can with what staff we know we have officer England missy resign recently from PD I just want to thank her for service that hours what she did um one squad went in for

35:07 repair but we do have three squads We're able to keep them on longer than you when I got one more. So, they're all paid for. They're taken care of. All right. Warranties are expiring now about plans replaced because they are negotiated. Um what I got for you.

35:36 You too. Thanks. All right. Do we have any other department updates? If you're aware of Scott, I'm getting the No. I'm getting the I'm getting the note. So, all right. Moving on to administrator update. Sure. So, um when the agenda was put together, there was one thing that was on there.

35:57 I do have a few more things than the one. So, I will try to uh go through these kind of in in order. Um, first thing I wanted to say is those of you that know J John Cambron who was on the uh planning commission, uh, he turned in his resignation uh, for that commission uh, due to health concerns. So, there will be an opening on the planning commission.

36:21 Uh, either we can put that out for applications or if there's anybody that uh, the mayor knows that uh, is interested in that, we can have that discussion at a later date, but just know that there is an opening there. Wonder if anyone in here has a suggestion for me on planning committee or any committee it would be greatly appreciated if any may be interested.

36:46 Okay. Uh with that just just some things that I get questions from the council and all that and I just wanted to kind of bring you guys up to speed a little bit on what's been going on. So, with with with the activities that have been going on the last few weeks and all that, um I was asked to sit in in a uh Compass meeting. Those of you that don't understand what Compasses, Compass is kind of the overlooking or overarching company that u looks over KMU and helps out with KMU things.

37:15 Um I won't go into a lot of detail, but they have a lot of influence and different things that are going on in the city of Kenyon. So, um, sat down with them. Uh, we've had Josh as part of these meetings that we sit in on. Uh, so Josh and I sit in these together. Um, the [sighs] I guess there's no really good way of saying it other than I'm just going to have to say it.

37:38 in sitting with Compass and talking about Compass, there were certain things that I think that the that the KMU commission and the city council um thought was going on and come to find out um some of that hasn't been going on. Um, for example, uh, I think we were all were under the, um, understanding that we had ample electricity and a plan to be able to bring electricity to the, um, industrial park for the individual or the company that's coming in there.

38:09 Um, when we had our initial meeting last week, um, with Compass, that was the first that they were hearing that any of that information was going on. So, that was a little alarming to me that we're this far into that project and potentially um Compass is hearing about that for the first time because they're the ones that would help.

38:29 They're the ones that would have design help design it and help figure out where the best route and what things are going to cost and help send it out to RFP so we could get estimates and all that. So, fast forward to today and why all this stuff is kind of on the agenda. Josh and I sat down with them again today with attorneys and engineers and people from Montana and and the Compass group and budgets and all that kind of stuff and and try to come up with a plan on what does this look like now now that they've been notified of it.

39:01 Um there's there's things like transformers that um according to them, this is not coming from me. Um but this is uh a transformers that we probably should have ordered a couple years ago because of the lake time and all that. This one transformer to give you an idea, this one transformer they're telling me today is going to be on the upwards of a million dollars to be able to get that transfer transformer in here.

39:26 So very concerning information coming out of some of that. also told that we had a contract that was sent out on July 2nd of this year um with no response and no signatures and nothing being brought back. We have missed deadlines. Josh comes to me on a daily basis with things that are being brought up or that he's seeing coming through the KMU emails that we have to scramble and try to get done and figure out a way to do it and then and then make deals with people to try to not get fined and all that type of stuff with deadlines that are being missed.

39:59 Um, so there's a lot going on there. I was also asked at this point, uh, on top of my other responsibilities if I would be open to joining the board and being part of their their planning for an interim until we get a replacement in there with Josh's assistance.

40:22 So, at the next KMU Commission meeting, we have to put together a resolution to have myself and Josh added to that so we can be part of the meetings and the discussions and things that go along with that. Um, your city administrator is going to be having to wear another hat here to be able to continue to keep things moving forward and to make sure that other things that Josh is bringing up that he's finding.

40:47 By the way, the guy's a superstar. He does a really really good job and he and he's got Parker and and Blake with him. But Josh and I talk on a daily basis, sometimes multiple times a day on calls together trying to get this all figured out on what's going on because there's a lot of moving parts that are going on with it. The other thing that they're recommending is a substation. We need a substation here because Excel Energy is going to be bringing power to us and for us to be able to piggy back with that and saving a substantial amount of money when they come through.

41:16 Um, we need to be able to take a look at a substation. That substation just in itself, it's probably about 3 years out, but we need to start planning now. But we're talking high ticket items. We're talking $3 to5 million for a substation to continue to to keep the power to everybody and to be able to continue to have enough power for the industrial power and other things.

41:41 So, some of you are looking at me like you're hearing this for the first time. That's how I looked last week and today when I was hearing it for the first time. So, there there is some things out there that I'm concerned with a little bit was timing and all that, but um Josh and I meet regularly. It's going to be an interesting journey, but you know what? We're up for the challenge. We'll get it figured out. You have a city administrator, fortunately or unfortunately, however you want to look at it, that before he was in the public sector, things uh work for utilities for 30 years.

42:11 And I understand the language. I understand what needs to be done. I understand how things uh need to operate and move forward and all that type of stuff. But wasn't something I was out looking for. I wasn't looking for to take on that responsibility. But I don't see anybody else that's going to be able to do that. And it's no disrespect to Josh. Josh is a three-year apprentice.

42:34 What we're going to be posting for with KMU is a journeyman or a superintendent or somebody along those lines that can be able to come in and bring some support and work alongside Josh. When that happens, I'll gladly pull back at that point. But right now, we have to continue to move forward if we're going to get power out there for Falcon. So then what is our responsibility? and what is Compass's responsibility financially and moving forward with bringing what's needed for what's building out there right now?

43:03 So, Comp, we have a contract with Compass and some of this stuff um when we meet with them is included in the contract, but most of the stuff I'm talking to you about right now is going to be billable time to us, meaning electric utility is going to have to pick up that bill. And how about the product itself? All the transformers, all the all of that. on the city.

43:23 It's on the city. We can't on CMU. That's that's a lot of money. It sure was done two years ago. The process of it and so what is our out or what is our what? Okay. Well, the the out if you're asking for the worst case the worst case scenario would be we we do minimal and then we don't have the adequate amount of power for them to run their business and the industrial partner.

43:50 That's the worst case scenario. And that's that's reality. That's not that that is an absolute reality that we spend a lot of time talking about today. These guys are moving in and planning on being in there and and my understand we made some promises, but I'm not seeing any of those promises transferred to paper with any deadlines or anything that was going to be done.

44:12 And they're working under an assumption that we are now scrambling to try to accommodate. So, who is responsible for this? For missing the book? Where was it dropped? Yeah. Honestly, where was it dropped? Um, between the lines.

44:35 Uh yeah, I'm going to I'm not going to point fingers um because we were I I just want to be respectful, but I I'm I'm thinking you guys would be able to figure out maybe where the ball was dropped. Yeah. I just But something with that magnitude, it shouldn't lie on one person. If you're talking about one person that was just let go, that shouldn't fall on one person.

44:59 that um that three or5 million expenditure or I don't know. Wow. It's all I can say. Wow. I can say it was with one person. It should have been shared, but it wasn't. I should have been included in those conversations a long time ago.

45:23 Yeah. That's all I can say. Yep. Now we now we pick up and we try to move forward, right? But I think by the looks around here that's why I wanted to share that today because I don't think people understood that. I know I didn't. I know I didn't understand it until I sat down with that team and started asking questions and I'm like then how about this and then how about and yeah there was a lot of discussion.

45:53 Anything to add Josh? No miss anything? Um, talked about Jay, we talked about uh Jay from Anderson from Compass. Uh, we got some deadlines that are coming up. Uh, Josh and I are working on a couple things with that. Um, Jesse's going to go into budgets tonight. Uh, budgets are going to be the enterprise funds.

46:15 Uh, KMU's budget's going to be part of the enterprise fund that we talk about tonight. So, we can talk about anything there. Um, our next KMU meeting is going to be scheduled for the 20th this month. Uh there's some of you in here that are on that commission. That's going to be a busy meeting. There's going to be resolutions. There's going to have to be decisions made. There's going to have to be what what do you want to do going forward?

46:37 Uh with some of the things I just shared right here. Uh what does that mean for how many dollars are looking to be spent and so on and so forth. It's going to be a pretty uh busy meeting on the 20th. So just be aware of that. Along with the same thing, we've been I've been working with Tim, the city administrator over in Cassen. Um, they have provided us with a mutual assistance agreement, basically a contract.

47:03 What they would be willing to do if Josh had to pick up the phone or one of the guys had to pick up the phone and we needed some assistance. Um they Jared over there is their lead guy, Tim is their administrator, and they're willing to work with us uh in an interim basis um until we get another person added to the KMU roster, excuse me.

47:25 And um so right now, Mr. Riggs is putting the final touches on. I think I actually see it come in right before the meeting. So I think we have that contract. So, I'll get back with the city of Cassin and once we have that in place, then we will have some backup for for the guys when they run into something that's a little bigger than they might be able to handle right now. And and in the same vein of that, MMUA, Brad from MMUA is also uh a volunteer at his services to be able to help out in a situation.

47:52 And then I know Josh has a couple people on speed dial that he talks to on a regular basis too that helps him out outside of these. So, we're trying to kind of do it by committee. We're trying to get it figured out by committee and making sure that uh everything uh all the gaps that we're finding in the process are being are being filled and that we can uh move forward uh with with what we need to have done.

48:14 The KMU job posting is about ready to go up. I'm hoping that that should be done by this the end of this week. Uh and then we have a public works uh posting that's going to be going up backfilling Nate's position. So those two are being worked on right now. Um, you know, and and and I'll just I'll just say this.

48:35 Um, I just want to talk about the culture just for a second. Ju I know we've been through a lot as a city, as a staff the last few weeks, but I got to tell you, we got a lot of good people here and the culture um that we're looking for is I'm starting to see it. And I'm going to give a small example and some of you been like, "That's a stupid example." Whatever.

48:59 Um, you just heard from Nate about the roses, right? And burying roses, digging it up, putting roses in, putting leaves on top of it, some insulation, burying it back. Um, gets to be a lot for a couple guys, right? Nate reaches out to Josh. Josh, is there any time coming up in next week the guys might be able to help us?

49:24 and the the two of them got together and they came up with a plan and KMU and public works is going to be working together to be able to dig and put roses in the ground. That's the kind of collaboration. That's the kind of culture these guys work together. They call on each other. I know they had a cover for each other on call over the weekend. They're getting that that that's what we're driving for towards and and that's what I'm seeing in the short amount of time here is and and to me it it's it's good to see that.

49:52 It's good to see that that has that hasn't always been the case. So along with that, as I know there was a question about League of Minnesota cities, mediation in League of Minnesota cities. We took a look at that uh a little bit um and and then Mr. Mr. Riggs and I talked about it also and and then the personnel committee chimed in and I think at this point when we talk about mediation at the League of Minnesota cities right now we're going to table that for the simple fact that it actually when questions were asked it really boiled down to one person and they typically don't do mediation because of

50:28 one person and I'm not the one person by the way unless if that's what you're thinking. Uh we also talked about pre-consil meeting uh work sessions. So, it was determined that we aren't going to do work sessions. There wasn't a lot of flavor or a lot of wanting to schedule another meeting the Thursday before the council meeting to do work.

50:49 So, what we did and what I've done in the past and I ran it by some folks and they thought it would be good because there are some people that would like to be able to get together and talk a little bit about what's coming at council meetings. So, what we're going to do is when Holly sends out the packet by Friday before the council meeting like you saw, then I will schedule time on either Mondays or Tuesdays.

51:11 You can let me know and then council members can come in and I can go through the packet within. Now, we can have two council members without breaking open meeting law. So, all we really have to do is schedule two meetings, whatever works for you. You and another council member can come in, we can discuss it. You don't have to come in if you don't want to come in if you're comfortable with what's on it. But there'll be an opportunity to be able to come in and ask questions and and almost like a work session, but we won't be having all the council members at it.

51:36 We'll just be able to answer any questions you might have or give you something else to look into or whatever it might be. And we can do that at two at a time. Um, so we it shouldn't be too cumbersome. That makes sense. There any questions on that? We thought that would be the next best instead of having work sessions and having everybody come into another evening meeting. Yeah.

51:57 Yeah. Um then we'll get into the budget. So, we'll talk about that. The last thing I just had to say is we have two candidates being interviewed at the fire department on Thursday night. Uh we just had two, I believe, a couple weeks ago.

52:18 Uh I don't know, time goes fast. Maybe it was longer than a couple weeks ago. Uh but it's it's exciting to see that there's a couple more candidates that are interested in uh joining the fire department. So those interviews will happen Thursday night and uh and we'll kind of see where we go from there. So we're you know anybody else that's interested in being part of the fire department or wants to be part of the fire department or know somebody that wants to be uh you can either reach out to somebody on the fire department or you can reach out here to the city uh and we'll get you in contact with the right people.

52:45 But we're trying to we're trying to build we've been we've been a little lean maybe five or six lean here recently and now we're trying to get back to kind of full capacity or as close to it as we can. So you want to tell them who the ones again in that I don't know [laughter] that young man in the in the gray sweatshirt and the gray hat one of our new KMU employees is going to be Yeah.

53:12 his name is uh Blake and uh he will uh be interviewing Thursday night and then we have another individual by the name of Blake that'll be interviewing Thursday night also. But thank you for stepping up like you've stepped up in KMU and you've been a great addition to the team and now you want to be part of the fire department and see where else it goes from there. So yeah. So anything else from the council?

53:36 Any questions for me? Thanks for stepping up for the compass part of things. Do the best I can there. Try and I just because like you just got hit me with the electrical too. Like I'm just taking it all in. So I do and I didn't um this because I'm not smart enough to but we on EDA, you know, we were kind of deal with all of that.

54:01 And I mean and I think it was like Chris Mallerie who was, you know, she's in real estate. She's super smart about all that stuff. But so we there was a lot of questions asked you know during that process when the room was part and when the visitor was in one of what she was more concerned not about electric she was more concerned about the water and stuff but she like we did ask a lot of question like we were we did ask a lot of questions multiple times.

54:26 Yeah like often because it was a big concern so of the ADA. Yeah the EDA or if we had water were you asking the right people? Oh, they were told. Yeah. Oh, okay. I don't know what you're referring to. You guys Yeah. Like we were just, you know, we were double-checking like is this gonna, you know, because is this business going to have a, you know, are we going to have enough stuff to support it?

54:48 Um, so people were asking about that. So it wasn't like nobody because I was just like when I heard that I'm like, you know, it just it took me a minute to kind of process what was going on there. So yeah. So there there was discussions about immediate. Yeah. Thank you. Yeah. All right. Anything else?

55:09 That's all I have, Mr. Mayor. All right. Moving on to engineering there. Thank you. Um, first item on my list here tonight is pay application number 10 for the 2025 street utility improvements. Uh the majority of this payment that's in front of you is for the uh final lift of asphalt that went down just a couple of weeks ago here and uh releasing some uh retainage for punch list work that they've uh completed over the last month.

55:40 Um they do still have some punch list work that remains. Um so as far as I know, they're planning to complete that by the completed date of October 31. Um, otherwise that's my update on the project for the month. Any questions on that one? Do I have that one yet?

56:03 So, do you need a motion? You need a motion for pay application number 10. Correct. Yeah. I will make a motion for pay application number 10. I second that. All in favor? I motion passes for pay application 10. Okay. Uh so next item uh trunk highway 60 uh utility fund.

56:24 So I give you a little background and just kind of start this conversation. This is going to be an ongoing discussion for a while here yet as we're looking forward to uh uh future capital improvements. Um a couple of years ago we uh heard from MIDOT that they were planning to improve Highway 60. Um improvement of a roadway can mean a lot of different things.

56:48 Um their current scope um that they're planning on here right now is essentially an overlay project. They're going to replace the surface pavement uh and do some other minor repairs. Um whenever they're planning those types of projects, they will reach out to cities because they know that there's commonly utilities below the roadway. We knew that there's utilities below. We did not understand at that time what's the what's the condition of those utilities and how critical are their repairs most you know the the the timing of their repairs or replacements.

57:21 Um over this summer uh we did get the sanitary sewer um main throughout the corridor there uh televised and we reviewed that televising. Um to be brief eventually um that piping that's within Highway 60 needs to be replaced. I don't look at that as an emergency.

57:45 So right now um right now MDOT's planning their project for 2030. Um those types of overlay projects they'll commonly come back every 15 to 20 years to do it. So basically every 15 to 20 years the city will have a decision point. Would you like to do a larger reconstruction project where you're digging up everything and replacing or or you know doing some more significant improvement.

58:11 Um you can see in the memo there I've laid out some you know some options but um you know when I'm looking at sanitary sewer there are needs basically for point repairs. There's some you know kind of minor things relatively minor things that we could address as part of their project but replacement of everything I don't think is warranted here right now. So we have some options there.

58:33 Um from the water main standpoint it's kind of a similar scenario. Uh eventually those utilities will need to be replaced. Um but I'm not looking at that as an emergency here right now. Um so what does that mean for moving forward? Um you could choose to do nothing at all and the state just moves forward with their project.

58:55 There's just a minor level of of uh coordination with them to, you know, allow them to make their project happen. Um, if you go all the way in the other direction, you know, we could tell them that, hey, we actually want to go through and replace all of the long-term needs of all utilities within this right away now or as part of this project.

59:18 Um, if you were to do that, you can see in the memo there's a pretty substantial cost to that. This is very high level view, but I'd estimate the city's cost would be at least three to four million to do that. Um given, you know, given, you know, the the criticality of those needs, it just doesn't seem like that's the appropriate decision right now, especially with um you know, some of the other infrastructure priorities priorities that we've been discussing over the past couple of years.

59:49 Um so what we're left with is I'm sorry. Um a third alternative where we're basically just doing partial replacements. We're doing minor repairs kind of on an as needed basis. Um, if we did this, most likely what would happen is MindBat would probably stick with their originally proposed project schedule of 2030 or around 2030.

1:00:13 Um, and moving forward, there would have to be some agreements that you'd enter into with the state, but we could essentially do an alleart uh, you know, choice of of which improvements do we want to go after. I've highlighted a few in my report. Um, but you know, we can get into more. This is how you want emotions working with them. Just do the little When do you have to know?

1:00:35 Uh, well, it kind of depends on the, you know, the choice to to move forward here, right? Right now, um, you know, I had a meeting with them about a a week and a half ago. What I conveyed to them is most likely you guys will want to move forward with this third alternative, which is, you know, partial replacements. Yeah.

1:00:56 So, they can kind of continue to move forward in the same direction that they were for a while here. I would guess sometime in the next year or so they're going to want to start looking at agreements with you and then we can get a little bit more specific as to what is that gonna be the whole like because didn't they do this like a while ago and then like it was like the first like what am I thinking the east side of that kind they kind of got some stuff done right more on the east end looks like the west end does that make sense uh the the last improvement project that they had yeah I can't remember exactly like Frank

1:01:32 did some like you you know I just remember oh um so we did um we did a sewer improvement project okay so it wasn't highway 60 doing their thing it it was within highway 60 but it was a city project okay so we had some utility stuff that we went after there were some surface impacts the state did not participate in that at all you think that side might be okay um there are portions of the downtown that need some attention.

1:02:02 Yeah. Um I just know on our end or whatever there's just a lot there's some there's some shared services weird stuff going on. It's some stuff like that that I think we can try to better identify. Yeah. Um and see if we can go after those. And that's actually a really good example of you know here's what you're up against. If you do uh utility improvements as part of the state's project, um the benefit to that is that the state, given that they're, you know, already doing road work, absorbs most of the uh the roadway

1:02:37 replacement cost. When we have a project like the Second Street uh sewer improvements that was kind of an emergency type of repair, all that pavement, even though it's state rightway and state highway, was paid for 100% by the city. So it's, you know, it's kind of a balancing act there. There's, you know, if you want to go through and do everything, there's there's still a large I don't think we can afford that.

1:03:01 I mean, I just don't think it's in our budget because I just know from Can we afford to wait 15 years? But I think we could do partial like the things that are really it's about going after the critical points, the thing that we, you know, beyond a reasonable doubt, we believe there might be a reason that we have to go after that in the next 15 years. So let's just do it now all as part of the project. you don't have to take on all, you know, the entire scope, every single sewer line, every single water line.

1:03:26 Let's just go after the the items that we know are problems, so they're no longer problems. Um there's always risk associated with these. You know, realistically, there's still going to be a large portion of water mane that's below the ground. They could pave the road and a year later, you could have a water mane break hanging out the pave, right? You know, for that repair in the in the pavement, you know, is it likely that you're going to have But it's not going to be $3 million, right?

1:03:49 Yes. [laughter] So, right, continue working with them in case there is some things that need to be done. Yep. Continue working with Mandot and the city's financial advisor so we can figure out how to, you know, make this happen for I mean, I'm not going to be here when you do that, but I but I mean that I just know that there's stuff under Yeah, that's what I would think would be the best.

1:04:11 But that's just my opinion. Just some stuff what you need to do. You're good at that, Derek. You know what to do. So maybe if I could just summarize that it would be uh a motion to you know begin moving forward with that third alternative coordinating with Mindot and the city's financial advisor. What do you think?

1:04:32 Yeah. Okay. I will make a motion to keep chatting about alternative three. I will second it. All in favor I motion passes for moving forward alternative three. Okay, thank you. Um so next item here is the final plat for the Kenyon Crossings um subdivision.

1:05:02 Um so uh as you know last month um we had the uh preliminary plat um and a couple of variances associated with this uh property. Um that preliminary plat and the variances was approved. uh last month and as part of that approval there were various terms uh set with um you know for how to move forward with the development.

1:05:27 Most of the details of those terms are laid out in the development agreement and you know those various other agreements that were also approved last month. Um what is on the table here tonight is just the platting. So, it's it's basically setting the plat, which is setting the lot lines, establishing the rightway, establishing the public easements for this parcel of land.

1:05:52 Um, it's not necessarily approval of the final plan or anything like that. That happened separately at an administrative level once, you know, they submitted plans that meet all the uh applicable codes. Um, uh, but yeah, you know, back to tonight's decision. This is this is just looking for an approval on the um on the final plat itself.

1:06:13 Uh there is a resolution. It's 202635. Uh the terms that you see in there, many of which are exactly the same as what you would have seen in the uh seen in the uh preliminary plat resolution. Um we've included uh minutes from the planning commission meeting that was held uh last week. There's a public hearing associated with that.

1:06:35 Um, are there any questions? Just need a motion to approve the resolution. Correct. I'll make a motion to approve resolution for 20635 with approving the final properties. I'll second it.

1:06:57 All in favor. I motion passes for resolution 202635. you're on to your lead service line. Yes. Uh thank you. So um this is uh more of a an update um an unfortunate update. Uh last month we had uh um requested approval to move forward with putting together a little bid package for the replacement of lead or galvanized service lines so we could you know stay in compliance with the uh the changes in the rules for continued use

1:07:33 of those types of lines. Um our understanding of the funding was based on what the state had approved uh last year and in these past couple of weeks state has released uh their new draft uh intended use plans and the level of funding assistance that they're planning to move forward with here right now is less substantially less than uh what has been um uh discussed previously.

1:08:02 So um you know just as an example coincidentally um the city has about 40 service lines that we have to replace at least that we know about right now. Um based on just some you know kind of planning level high decision uh high level cost estimates that work would cost about a million dollars. Um and the state would pay for all of that uh based on that level of assistance.

1:08:28 In the past couple of weeks, they put new funding caps in place that would take that million dollars down to $150,000 annually. So, it's less amount per service. Instead of 25,000 per service, it's 15,000 per service. And we can't do that in a more in a larger project that's more efficient. So, raised our project cost and spread it out and reduced our funding.

1:08:52 Wow. So, um, it's probably needless to say we are not moving [clears throat] forward with the scope. I'm not doing anything with this. I'm trying to collect more information on this. This is there'll be a decision point coming with this and I don't have the answer for you here today. Um, you know, you could decide to wait on this because this mandate isn't, you know, it's not coming up tomorrow or anything like this.

1:09:19 um and run the risk of even lesser money available at someday or um you know hope and pray that additional funding will become available. Um but you know with the amount of spending that's been happening in you know a lot of the larger cities out there and I mean [laughter] there's been a lot of it that's used up and some of the sources as I understand uh have dried up as well.

1:09:43 So this is this is a a large problem. Um what we will do in the next month here is we'll come up with a a bit more of a game plan um and a suggestion for moving forward with with some of this. And where are these service lines? Who are these servicing these lead? Um so there's a handful of private water services that are in various locations.

1:10:10 There's you can look it up online if you want to or I can show you. Okay. There's there's more of them that have galvanized services. Um, and from the standpoint of the Department of Health, they treat a galvanized service the same as a lead service line. Okay. Um, and they need to be replaced. They're kind of in random locations all over the place.

1:10:33 Okay. So, who would test the level to know? I mean, you're you're told if it's a must or if it can wait. I mean, is it part right now? Most right now most of the information that we have is based on inventory data we've been collecting over the past couple of years. So that was you know when when uh these changes to the lead and copper rule uh were coming one of the mandates that came about was all communities throughout the entire country uh had to establish an inventory of all the services that are out there.

1:11:05 So that just goes by age of No, no. I I mean I mean it was up until, you know, in some cases uh the 70s that you could have, you know, potentially used actually technically into the 80s where you could have used lead pipe for water service. It's, you know, not common throughout that time period, but there's different areas of the state, different time periods where, you know, plumbers or developers or whatever were commonly using those types of of uh materials.

1:11:33 and they used it in a couple of those that are out there. Others, you know, they may have been installed at the same point. It's a copper service and there's no problem with it at all. Yeah. Um the um the ones that we do know about, again, it amounts to about 40 of them. And right now, um I'm hoping I have these dates. I believe the mandates that they uh that those lead and galvanized services be replaced by 2037.

1:11:59 I believe the Department of Health's goal is to [clears throat] actually have them done by 2033. Um, and when these things pop up on our radar and we have questions about them, as Derek's talking to you about, the three gentlemen in KMU back there, these are the guys that actually will go out there and take water samples and turn them. That's what I wanted. And they do they they they do the samples, send them into it for us, and and we get results back.

1:12:23 So then the homeowner is given the option if they want to replace it or so right right now the grant money is only available if the city uh does the project. As you can imagine, you know, when state or federal money is associated, they're not just going to hand that out to anywhere. They're going to have a lot of red tape associated with this. So they basically only trust cities in order to do that.

1:12:44 I I will tell you, you may have noticed there was notice that had to go out last week based on some water testing that was required. Uh there were a couple of samples that did come back over the threshold um for lead. Yep. And those I believe those two homes had lead water services. So then they're told Oh yes, they are told. So it's not like nobody knows all this that is affected.

1:13:08 No. Okay. the you know the other thing that can and that kind of also goes into the you know the factors of when do you actually do this because those water service replacements that's that cost is no joke. Um even a couple of years ago um you know we were getting bids to replace all the way out into the the street in excess of $20,000. Wow.

1:13:29 So the idea of just having a private resident that just learned that they have a lead water service to do this if we can find some other funding sources. We should, you know, be trying to do that. So, our goal with this is to, you know, let's let's try to take advantage of that funding that's available when it's available while still, you know, putting some of these higher priority services um, you know, on the list for replacement as soon as possible because there there are services in town that by no means should anybody be drinking water out of and it's not okay.

1:13:59 Yeah. Okay. So, and they know it. And they know it. That's the key. And for the most part, if well, not for the most part, if uh we we send out annual notices, if you have a galvanized or lead service, in many cases, we're already uh coming through and and doing the lead testing uh and notifying that owner of those results.

1:14:23 um if there's any others that for whatever reason are not tested, they can, you know, they can reach out to the city and we can talk about testing to make sure that uh at least you understand and have the opportunity to be informed about it. Um but yes, um back to the, you know, the original item here that was just a an FYI so you all know what's going on. Um we'll we'll come back with a plan on that the next month and figure out how we can move forward here.

1:14:49 Thank you, Eric. All right. All right. Moving on to legal. And I don't think we have nothing legal. No. And old business. The 2027 proposed enterprise funds budget. Jesse, you're up. All right.

1:15:11 Last meeting, council, you guys wanted to talk about enterprise funds. We went through the other budgets. We've been talking budgets a lot for the last couple months and all that type of stuff. uh we landed on but we wanted to uh kind of bring you up to speeds on the enterprise funds there as we go forward. So that's kind of what this first one's about here now. Jesse Yep. Heather, can you allow me to share my screen please?

1:15:39 Perfect. Thank you. All right, let me move this out of the way. I'm working off of two screens instead of three, so bear with me. Um, tonight we're going to discuss the enterprise fund budget along with I'm going to do a highlevel general fund budget.

1:16:02 You guys have seen the um general fund budget and we have made no changes to it, but I just wanted to touch on it again tonight just to see where we're at and then I will go through the enterprise fund budget in detail with you guys. All right, so tonight's agenda, I have the general fund.

1:16:23 I'm just going to go over that tax levy again. I'm going to look at the general fund revenues and expenses at a high level. And then um council requested me to do some wage and benefit scenarios. I will briefly touch on those. And then we're going to switch to the enterprise funds and I have some key items for consideration and then I'm going to go through water, sewer, electric, and storm.

1:16:50 So this should be the general fund budget memo that you guys have in your packets. So, this shows up on page two of your packet. So, again, the 2027 tax levy is proposed to increase $141,574 or 9.26% from 2026. Um, again, I want to point out this has not changed since we did the or certified the prelim levy, but I wanted to touch on it again.

1:17:19 Um, the general fund levy is going to go up increase about $159,784 or 23.12%. Towards the middle or towards the middle there, the or the bottom, the debt levy is actually going down $2,93 and that is due to all of the bond schedule obligations for 2027.

1:17:43 The fire levy is decreasing by $1349 which is negative 1.35%. The library levy there in the middle is going up $7,354 which is 4.7%. And the main factors of this are just the increase in wages and benefits.

1:18:06 And then the EDA levy there is increasing about $13,78 which is about 15.90% of the levy and that is in increasing due to the removal of the inner fund loan because it was paid off. And then at the bottom there you will see the tax capacity is going up about $42,57 and that's an increase of 2.33% which then in turns affects affects the tax rate which is going up to 89.3% which is a 5.68% increase from

1:18:42 last year. And again none of this has changed. I just wanted to run it by you guys again to show that we have not made any changes. Um this slide shows the impact of the different tax levies. I want to point out this is assumes no market value increase. So with that said, this is estimated on property taxes.

1:19:03 So $100,000 house will go up about $35 approximately. A $200,000 house will go up about $97. A $300,000 house will go up about $159. A $400,000 house will go up about $221 and that commercial property at a half a million million dollars will go up about $525.

1:19:28 And we'll briefly touch on the general revenues. So on this page or on this slide, I show the revenues broken down by the type of um revenue that it is. Um the main de or increase this year is that top line is the property tax line. And that line is the number that fluctuates anytime we make a change in revenues or expenses.

1:19:52 So anytime to get a balanced budget, anytime one of those numbers changes, that's a number that fluctuates every single time and that's what drives the levy. And the rest of the items on there are increasing and decreasing slightly. So on here we see the general fund expenditures broken down by departments within the general fund.

1:20:14 A few of the larger differences is um I um the city the second line there I have the city administration general government. I combined those two departments because the um outside accounting services were being budgeted in the one department and paid out of the other.

1:20:37 So, it kind of skewed the numbers. So, Scott and I put them together to show that it is only a $21,000 increase. So, the numbers are not so skewed. So, the second line item is going up about $21,648 and that is due to wages and benefits due to the COLA and step increases. [clears throat] Um the middle line there is the law enforcement and that is going up 103 let me see $103,70 and that is due to the vacant police officer positions

1:21:12 again and the wages and benefit increases and then it also drives from them health insurance plans. And then the last to towards the bottom there is the streets and that's going up about $26,220. Again, that's an increase in wages and benefits due to cola and step increases.

1:21:36 And then we increase motor fuels due to the fuel prices. And at the p end of that packet, you do have line by line items of the general fund budget. And with that, I kept it really short because you guys have seen this a couple times. So, do you guys have any questions on the general fund budget? Nope.

1:22:03 We can move on. Nope. Okay. So, let me get situated here. I apologize. I'm working off of two screens. So, I'm have four different things up trying to go between two slides. So now we will flip to the enterprise bonds and this is the first time you guys have seen those. So I will go into detail a little bit and then you guys can um ask questions or whatever you guys need.

1:22:28 Okay. All right. So some key items for consideration here are there are four enterprise funds operating in the city. The final enterprise fund budget has a net revenue of $318,786 and a planned use of fund balance of $167,080.

1:22:52 So overall, we have a net revenue of $318,000 with the four of them combined. On this slide, it shows the four different funds and it's the budgets for the 2027 budget. Um, I will go into detail on them, but I just wanted to combine them all showing the change in fund balance of all four of the funds is is at the bottom here.

1:23:20 And then let me get to this page here. Okay. On this slide is the water fund. So overall there's an increase of revenues of $93,500. A few of the larger changes are the interest in penalties there.

1:23:44 we um increased that about $114,500 and we changed the allocation on how um interest is divided out between KMU is divided out between the fund or the cash balances of each each fund. So every month when we do our monthly cash and investments we look at the cash balance of each fund and the interest gets allocated accordingly between those two funds.

1:24:10 So with that this year we have a increase in um we have as of 9:30 we have about $126,000 for interest. So we thought we would increase it slightly and not completely go overboard in case the interest rates slide down a little bit. So we increase that and then at the bottom there is that transfer that we removed and we removed the um 2021 inner fund loan.

1:24:40 It's from the electric fund to the water fund. Um, how this interfund loan was set up when it was initially set up a number of years ago is instead of hitting revenues and expenses, it actually affects the balance sheet accounts. Therefore, it doesn't need to be part of the budget because it's affecting strictly balance sheet accounts. So, I took that off for this year.

1:25:01 So, that's why it looks like it's $25,000 difference. And then overall down there in the expenses overall towards the bottom there there is a decrease in re or in expenses of about $13,474.

1:25:25 um of that the personnel expenses are going up about $67,650 and again that is due to cola adjustments, step increases and rising health insurance costs. The planning and engineering towards the middle there is going about down about $19,215.

1:25:49 And I removed that line item due to um the last couple years nothing has been used in that budget. A couple years ago only $2,000 of it was used. So we removed it for this year. And then at the bottom there, that large decrease there is the debt service. you we still have the bond, but how we post the payments is we don't um hit an expense account.

1:26:16 We hit the balance sheet accounts again. So therefore, we don't need to put the um principal payment on the in the budget because it will directly affect a balance sheet account [clears throat] overall. And then at the bottom there, it shows there's an overall increase of fund balance of $16,974.

1:26:41 I'm going to stop there and you guys have any questions on that because I know I threw a lot at you and there's a lot of numbers on the page. No. Okay.

1:27:04 So, here again is the sewer. So overall at the top there, there is an increase of revenues about $24,000. And of that, it's strictly the sewer sales. So it is an increase in sales. So I looked at the prior couple years and um they were budgeted just a little low.

1:27:25 So I increased them about $24,000 to align more with what was actually coming through for the last couple months. And then the rest of the numbers are the same. I kept the interest and penalties the same and all of that. And then at the bottom here is the expenses.

1:27:49 So towards the bottom there is a decrease in expenses of about $238,97. And again that is due to that debt service line item and that affects the balance sheet accounts versus revenues and expenses. So I remove that. Therefore, it looks like such a decrease. The bonds still will be paid.

1:28:11 They'll just affect the bonds payable account instead of the expense. So then overall then at the bottom there is an increase of fund balance of $262,97 for the sewer fund. Moving on to electric there. So overall in the electric fund, there's a $220,900 decrease in electric.

1:28:39 And that is at the top there, the electric sales. I reviewed the last couple years of um balances and I lowered them just slightly in the different departments in the different line items. And then also in the miscellaneous revenues or in the interest and penalties again that's to the way due to the way we allocated interest.

1:29:06 Um the water fund has a little bit higher cash balance so it's been receiving a little bit greater funds from the interest than the electric fund. And then the refunds, let's see. And then that bottom line there is that um re miscellaneous revenues and that is an increase of $125,700.

1:29:32 And in previous years, the garbage has been paid out of the general fund and it's been running through the 603 fund or being the revenue is going in one and being paid out of the other. So I brought that all into the electric fund. So that's why it shows such uh increase in that. So it will be removed out of the general fund and moved to the electric.

1:29:58 Um, next year when we are doing this again, we can move that all to the general fund or we can set up its new fund. But for the time being, we'll just keep it in the electric fund like it has been and just run it through there. And then at the bottom there is the expenses and there's an increase of $59,94 overall.

1:30:22 So, some of the larger decreases is the personnel budget is going up about $92,210 and that is an increase due to cola adjustments, step increases, and rising health insurance costs again. And then we have what was that? And we added another body and another body. Yes. And then the administrative cost towards the middle there is going up about $63,540.

1:30:50 And that is due to the reductions in power purchase power budget and that's to line better with the actual expenditures from this year. So I reviewed those and adjusted all of those accordingly. [clears throat] And then the bottom line item is that transfer and again that is the other side of that from the water fund.

1:31:11 So I removed that because again that hits balance sheet accounts. And then so overall in the electric fund there's a decrease in fund balance of $280,84. And then the last slide I have is the storm water. So overall we kept the revenues the same. So there's zero impact on revenues.

1:31:33 And then towards the bottom there there's a decrease in expenses of $47,214. of that again I took that debt service payment out of the budget so it will affect balance sheet accounts and the rest of those are pretty much the same supplies went down or planning or the engineering went down a little bit which makes up that $47,000 and then overall there's an increase of about $47,214.

1:32:05 So with that, I will stop sharing my screen and I will stand for any questions you guys have. And I know it's the first time you've seen it, so feel free to ask questions or whatever you guys have. Mr. Mayor, yes. I just want to make one comment when when when you as council members are out there or any staff or whatever is talking to people and people are coming to you and they're saying well you know I think there's co- coingling of funds or I think it's in the general fund or I think you know so and so is doing this or so and so is doing that.

1:32:40 You just saw that these are standalone budgets. These are enterprise funds that stand alone that are budgeted u through rates that are spent. Revenues and expenditures are run through their own budget. There's no coming. There's no it's in the general fund or it's in that. So when people are asking you that you can send them to me if you want and we can show them or you can ask or you can answer their questions.

1:33:03 But there's there's no funny business going on. It's straightforward. You're looking at it right now. Done. Sorry, Jesse, I stepped on your questions part. Nope. Nope. You guys have any questions? At the end of the packet, too, you guys do have line by line items, too.

1:33:25 Again, strictly for the enterprise funds as well. So, with the water sewer and storm sewer sewer, we're showing that we're actually bringing money in. bringing revenue in where the electric were losing revenue. Yep. Yep. So, that was part of our conversation, Mr.

1:33:49 Mayor, today that was a little alarming to me is that um on the electric side of things, we have been in the negative for the last three years. We've been losing money on electric for the last three years and there's been some adjustments made as of June of this. So hopefully that'll start to correct itself, but it takes a little while to correct itself. Yeah.

1:34:11 And then with that lower fund balance, we allocate interest according to the cash balance. So the water fund has a higher balance. So therefore, more interest is going to the water as of right now. So that's why you see the drastic swing in interest. Any other questions?

1:34:37 No. Thank you. Thank you. Yep. Okay. Moving on to new business. Um the 2027 budget considerations. Jesse, I just combined them both.

1:34:57 Sorry. Yeah, that's that was my general fund budget. Sorry. Yeah. So, I don't have anything to add on that piece of it because I covered that at the beginning of the slides. Beautiful. So, you have anything additional at all from a budget standpoint or those those numbers that you were talking about?

1:35:26 I can hit on the different scenarios if you would like me to. Yeah, I think they I think they were just Okay. Yep. Let me get to that. Yes. Yeah. Okay. I will just touch base quickly on that. I have to find the correct memo here quick. Sorry, I have to adjust everybody on my screens here.

1:36:04 Okay, I don't need to share my screen or anything. I'll just go over it, but it is in your packet. So, council had me run a couple different scenarios on they had me run one on completely freezing the wages for the year, strictly doing a 3% cola and then doing a one without council pay.

1:36:29 So when we ran those scenarios, if with the cola increase of 3% and zero steps, so they'd be receiving just the cola and no steps, there's an overall savings of $43,630 of the overall budget. Of that, only $21,530 impacts the general fund and would reduce the levy about 1.41%.

1:37:06 A wage freeze would save an overall budget savings of $87,380. of that $43,080 would impact the general fund only, which would reduce the levy about 2.82% approximately.

1:37:30 And then if we eliminated council pay for the year, that's an overall savings of $14,68, which all of that would go to the general fund, which would reduce a levy about.96%. So those are the three different scenarios that you guys requested me to run.

1:37:58 All total that would take about 5% off the levy. Um, you can't do all three of them because the first one is a 3% cola and then the second one would be a wage freeze completely. The molds we could lower would be 2.82 82. That would be a complete freeze.

1:38:21 Complete freeze. And then you could also do number three is eliminate council pay to do another 0.96%. So, and I know the personnel committee discussed this and everything and and we didn't want to freeze everything because our staff should be entitled to some form of raise.

1:38:47 They work hard for what they do and and I know not all companies give raises or cola raises but most companies do. I know I know there was a comment from a previous meeting saying we should freeze wages and let them feel the burden that everybody else is feeling but not everybody feeling that burden with I mean at our job we get raises sometimes you don't get raises but if we just cut their wages not everybody in this town is having their wages cut and I

1:39:23 don't know I just don't feel it's right to cut their wages. is I don't know too. Yeah. I don't I think I I don't think I was here the last place. So I don't even No, I think a compromise in between where just a cola would be given and not a step. We thought about that compromise, but then next year it would come around and they would say, "But we never got our 3% step increase last year, so we're going to get 6% this year." Does that help?

1:39:54 I think either way they're going to somebody's going to come back and say we want compensation for the previous year since we're on a tight budget and we're on a tight budget every year. So we either punish the employees or we give them their [clears throat] wages and well employees do as well as the company does every direct reflection.

1:40:16 It does. So company isn't doing well and is struggling it's it's a trickle down. That's just the way life is. And as far as the city council, I I've stated this before. I don't care I get paid or not. No. But with the new council coming in, I don't get how they're feeling. I don't think anybody for the pay it's not.

1:40:40 So, you know, I didn't even know we got paid when I and you guys probably didn't either. Told me that. So, we still do that. I can move it 1%. So that is something when you do it every little bit counts. So and with everything coming up the burden.

1:41:04 All right. Well, I'm fine with it if you guys are. I am. I don't know how the new council's going to think when they come in. What decisions are made that affect people later that Yeah. are Yeah. The only thing, you know, I mean that's f I mean I don't care because you know it's not going to make difference to me. I would just say, you know, kind of once you make a decision like that, that's fine.

1:41:26 Whatever you, you know, whatever we do, but is that going to be permanent or is that just going to be for the year? It could just be for the year, but then it come back being reinstated as okay twice what we're paid now. We don't know how. So this would be for the it would affect just budget.

1:41:49 So what I'm fine with eliminating and then that would bring it down to like 8.96 I think it said well now it's 9.26. No it would drop it like almost 100%. Almost% almost 100%. Yeah. I'm fine with that if you guys are.

1:42:10 Yeah. I'm fine with that. You want to make motion? One second before Jesse, can you explain to them how that would work then with the levy people and then the enterprise people because there's a difference. Um, it would not affect the enterprise fund budget at all if you kept wages the same. Council, it would just affect the general fund levy.

1:42:35 So, are you as a council when you take it to a motion, are you considering a wage freeze or whatever the number is, you're going to look for all employees or only levy employ. My bad. I thought you were going with the other ones and I was just going to make sure that we had it's not adjusted.

1:42:59 It's not a lot of money, but it's one. And Scott, there might be some resolutions and stuff that you have to pass. I would check with um your attorney on what the what you guys have to do to make sure you're compliant. Yes. Yep. Okay. Don't just tonight resolution.

1:43:20 You Yeah, you can you can approve what you want to approve tonight motion tonight and approve it tonight and then we'll just put that into a resolution and then you and I'll just have to get together and sign. Yeah, that's all it is. I'll just get with rigs and put it in the right format. That's all. Two different motions then. One for council and one for employees. Um we're just or motions not res take away council.

1:43:46 Okay. I make a motion. We're not We're not I'm messing with the importance. Okay. I make a motion that we take away council pay for the 2027 budget. Freeze the wages probably. Freeze the wages for council for Yeah. All right. And I'll second it. All in favor?

1:44:08 I motion passes to freeze council wages. All right. Was that all we have for budget considerations? Yep. That's all I had. So, I missed a piece. So, we're not going to talk any further about employee wages tonight.

1:44:30 No. Okay. Good. We decide we're not going to cut them at all. Okay. Good. All right. All right. So then the general fund I'll bring it we can review it again in November and then we will get the levy certified for the December meeting then the final levy in December and there is still the potential that there will be a little wiggle room.

1:44:54 Jesse and I are still working on it. So we're hoping to come in at the 11th hour and show you guys another savings in there also. So, yep. Want to make any promises, but I'm going to work hard and try to see if we can't make another adjustment before before December. So, okay. Yep. Which will affect the living. All right.

1:45:17 Moving on to the next on new business would be the tax abatement. The grocery store is looking for a tax abate abatement. Wasn't it roughly $40,000? Yeah. You want me to speak to it just real quick? Just an overview. Just simple. It's in your packet there. Uh the request uh of me and and I got with Northland Securities, which you can see the documents in here.

1:45:37 Uh and also talked with Mr. Riggs just to make sure we had everything covered. The the the ask was $40,000 or $8,000 a year over the course of five years. That was the that was the ask where for the abatement. Um that would So ultimately uh you got the $40,000 abatement.

1:45:59 That's roughly I think it's in the paperwork here somewhere what that is to uh to the average resident here and I'm sorry it's not jumping out at me but I think it's $9 in some sense uh that's in this document that you would pay or less than 50 I think it was $47 over the course of five years and then an average resident here would pay for that tax abatement.

1:46:21 One of the things that I want you to be part or be privy to as a council as you're considering this is uh the second attachment to that is there's a $5,000 fee fee. Thank you. A fee that's tied to it for Tammy or Northland to be able to put all the paperwork together and all that kind of stuff. So, what you would be approving is the $40,000 abatement at the terms that we talked about plus the $5,000 [snorts] fee to be able to make it happen.

1:46:47 That's really what's on the table today. And I've thought about both scenarios in this how important the grocery store is and everything with the with this succeeding because I mean the grocery store is kind of the heart of the town with all the grocery store.

1:47:08 Everybody knows normally other business start shutting down but however like one of our clients from the city tonight a lot of business would love the tax so they don't want to pay the tax I'd love but I don't I don't know if it's feasible to give one because who's to say that Mary's going to come their flagship on deck.

1:47:43 So, but I think you have to look at business as are they and this is really pretty subjective, but do you are you looking at the business as a necessity? Are you looking at the business as a want? Are you looking at the business as how many people does it affect in the town versus Well, I mean, everybody has a different necessity.

1:48:05 It's subjective. I know like the nap store would consider that a necessity in town. But if we if we were to take a poll of the citizens about the grocery store, I mean there was a huge uproar about the grocery store closing. There was would there be a huge uproar about pick a store in town? Well, yeah.

1:48:26 Like I mean I love my I love my flower shop and it's important but it's not doesn't make a Rick this and so I I understand what Jeff was saying and I understand that there's going to be that and I I didn't know about any of that earlier with him and Mark or whatever but I know cuz I thought about this too and I know we discussed this we've discussed this a lot.

1:48:47 It's like, yeah, it's it's just not a good scenario and people are going to think that way. But the thing is people a grocery I just I don't I don't like that we're we're having to do this. But at the same time, it's like you have to have a grocery store. Yeah. You have to have food. You do not have that. I mean that it's it's it's a place people go every day.

1:49:09 And so it doesn't it doesn't mean that I think less of any other businesses. I agree. It's it's not that at all. I mean, I run a small business and I have, you know, I mine's probably the smallest one around, so I understand financial struggles. I do, but um I just think [clears throat] I don't know the grocery store.

1:49:32 I mean, if you lose that grocery store, the town buckles. That's what I think. If my flower shop leaves, the town doesn't buckle. That's how I feel. What about our gas stations? Yeah, I thought our gas station shut down necessity.

1:49:54 Why would why wouldn't it? It's really subjective. Based on what the needs of the family are and then what is the I don't I guess you know Jeff was talking earlier about like he couldn't get one because I just I didn't know that was a law or a rule. I just wasn't aware of that either. No, I don't know if it was true. Oh [laughter] yeah. I guess I don't know.

1:50:14 I don't know that like qualified. I didn't want to do the work. Okay. So So there's not like a lot like there's not you don't know. Okay. You don't think it's true? I think I am qualified. Pl was Okay. Jeeoff, is that on a new property you're referring to? Is that on the new place you're talking about? Is that piece of land there? You take a piece of property worth $100,000 and I can I've been there for 26 years or Yeah.

1:50:40 25 years. It will be 25 years in 2027. It's a $100,000 piece of property. I could I could have retired at that $100,000 piece of property. But I took that piece of property. Now it's a 1.5 million piece of property. So I would have qualified for the tax abatement being that if I would have asked for or I did ask but they said I didn't qualify.

1:51:03 I think it was because he didn't want to do the work. Like kind of what Billy said here a little bit. It's but you have to at that point I'm going to make this piece in five years you're going to get the full tax benefit of that piece of property. If I were retired like that it would still been $100,000 piece of property. In this situation this piece property is a subsidy.

1:51:32 They're not increasing the value of the growth store growth this price. I don't want to see the grocery store leave either. I was in this grocery store. I have four boys. We'd get milk in there three times a week. Go in there and get three gallons. Darla come up. I come up there with two gallons. Darla come running up there.

1:51:53 She goes, "How come you don't got two gallons? Case is empty." She takes off to the back, brings up another gallon because they hadn't stocked the shelves yet. I get that. But you wouldn't get that in Walmart, I any other store. That's what you get in a local grocery store. I don't want to see the store leave either, but I just think this is not the way to do it.

1:52:18 Support the store, the store will stay. If more people supported the store, they wouldn't get tax, right? Support the store. Go in there, buy your milk. So instead of you know tax payment, why not push to the community to support your store? Yeah.

1:52:39 Use their energy that way. Yeah. Well, and Jeff isn't the only one that's expressed this concern. I've heard a lot of I've heard a lot of people say that how what's the difference between my business and so it is a concern. So, so one thing you could concern is or con consider, and I don't know where you're at, and I'm not trying to sway the conversation one way or another, but if

1:53:14 you like a different number other than $40,000, you could consider that. Or if your number is zero, then I mean, whatever. But I'm just saying it doesn't have to be necessarily 40 or bust. Depends upon what you guys are thinking. And again, please, I'm just giving you guys options. I'm not trying to sway the conversation one way or another.

1:53:35 I'm just I'm neutral here. I don't I'm just giving you guys options. I think we should pass on it. Personally, I think based on what we heard tonight with everything else going on in our city, I think Barney would be the first one to understand that I'm sorry, we can't do this, Barney, right now. We just can't. I think we put it on to the communities and if you want your store store support it right so if it fails it's non city council send right yeah agree with that oh he does sorry

1:54:11 to see you back there [laughter] oh yeah I feel Yeah. Well, I I understand, you know, that's the point that, you know, right now I'm the only one that's put off and it's I mean, you saw the number.

1:54:38 I shared the numbers with you guys. through and all I was looking for was some support from the city. No, and just to make it a goal. So, I mean, I haven't yet. So, I mean, I'm just saying it's that close that, you know, I'm risking a lot of my personal stuff.

1:55:08 I have a job, but So some of that expenses cut out but I just I'm just saying you know something else the bank stepped up figured a way to finance what we need to finance.

1:55:30 I mean I guess I was hoping sitting still and you choose not to I guess that's if you wanted to I mean we could go something where you know share the book for next year but then you know it's up to you guys but I'm just saying it's a very tight There's a reason they're going to close.

1:56:02 Yeah. What if we What if we did something like like one year? Let's see how that goes. You're still paying the 5,000. I don't see the expenses changing a lot because [clears throat] that's it's going to be the same process.

1:56:23 Yeah. I mean, yeah, it depends on what you do at the store, right? And I understand the ask of the city. You're you're asking of the city to help by forcing the people to pay higher taxes. And that's really what it is. And it comes down to the city.

1:56:47 I mean, we did have one person tonight discussing how we're wasting money, you know. So, I mean, it's it's a double-edged sword. No matter what we do, we're the bad guys. Yeah. And not like how I feel.

1:57:11 I feel as though if the residents of Kenyon step up, if they want to save the store, we need to make the effort to go down and support our store. Otherwise, we're just giving you a tax abatement for five years, but [clears throat] what's gonna happen after the five years? Yeah. We're still taking that chance and it still might fail.

1:57:38 I hope you heard it. I mean, when I talked about the resolution, I said that's in the resolution. Say it again, Bernie. If it what? Well, when we talked, you know, long time ago when we talked about this, get somebody to buy it. Yeah.

1:57:59 Yep. You know, if it wasn't a grocery store, they Oh, I see what you're saying. Yeah. Yeah. Yeah. Yeah. Yeah. I see what you're saying. And it couldn't be the old owner, it has to be the new person that Yeah. There's certain qualifications that even allow the abatement to work, right? Yeah. Yeah. No, it's just a tough decision.

1:58:27 Barney, can you can you share with the council at all the why or how you got to the 40 just roughly and why five years? If you did a threeyear, does it not quite get what where what are we trying to get to? If you even want to share that in in this setting, it's up to you. for sure the first year after that.

1:58:55 I might think I have a good plan, but not the plan work out exactly right. But hopefully at the end of next year, we're standing. You don't you don't know. Mhm. There's so many moving parts that I think uh we kind of want to do five.

1:59:27 I just Yeah. Are we able I know we don't got a lot of people here but mean are we able to ask our audience it's not the same so that's not tonight okay but I'm glad you brought it up because tonight's meeting was all about what is the appetite for the council and for Barney to be able to be here and kind of hear what's going on what yeah can we do a public hearing next that's next not tonight so we will still schedule a public hearing to be able to have people

2:00:03 come in and be able to do that and then we when I say re rigs and I could put together a draft resolution for you guys to take a look at at that point. Um but for this to be all finalized and all that tonight isn't the end all. Tonight is to get us kind of tonight was to decide you want to continue to spend time and effort going forward to look at this further.

2:00:28 Uh, I know Barney was hoping and and and maybe if the council had kind of an idea where they were going, he would have maybe had some sort of inkling on where it's going, but no matter what happened tonight, we still have to have a public hearing and a and a resolution. Why don't we go why don't we have a public hearing and then the if the community is like, "Yeah, cool. We're going to pay $9." You know, the then what?

2:00:49 I mean, if that's the consent, I don't know. But then I mean, you would have to, you know, like you say, then you might get other people in that want to do this and then you have that. But but there won't be $9 based on No, right. Yeah. Well, yeah. Whatever. But so you did not have a resolution. Uh there was a partial resolution.

2:01:14 I'm sorry. I'm looking at the other one. No, we were talking about Sorry. Or no, you have it. You Somebody have it pulled up. I went to the next thing. I'm sorry. Was there a resolution in there? Oh. Yeah, there is a resolution. I think is there Can you read it or can you So, let me go to T because Tammy had it in in the format of what it needed to be with all the information and then um what it was going to cost the city.

2:01:41 When when I talked with Tammy and Rigs, we were like, let's see what the council's got to say. If the council is on board with that, then let's go ahead and schedule the public hearing and then we can finalize the resolution. That was the plan. I mean, there isn't one in here. Yeah. Yeah. Yeah. Like I would I don't know that I want to make a decision until I with the community.

2:02:05 So So tonight was to see where the council was. Do they want to continue to move forward? And are they on board with spending the $5,000 of city money to be able to do it? If all those were thumbs up and yes, then we go that would cost us money to have the public hearing. No, no. The 5,000 5,000 goes to Northland to draw this all up and to be able to make it all happens money to hearing stuff, all that part of that.

2:02:33 And then Tammy's bill is the one that you see that's in here from Northland, right? Yeah, it will be a little bit of expense. I think I'd like to do the public hearing either. If you're wanting to hear from folks other than just the folks here, probably some will be the same and then add it to I think then we we're just going to have to table it for and be able to schedule the public hearing and finalize the resolution before next meeting.

2:03:06 Well, Barney's waiting to decide if he wants to sign on or not sign on. So this is this is a piece of his decision making, right? That's that's why he can you also check with Northland to see if say we just did a three year if their cost would be less for they can do that. Sure. Absolutely.

2:03:30 Just I'm going to caution you there probably not going to be much of a cut because all of it but I will ask the question. Yep. Certainly. Well, it was that 5,43 and something per hour. So they probably just change it to an hourly. They still got to write the contract. It's probably the same. That's what I'm thinking. Change number to three years or five years. Right. Right. Right. No.

2:03:54 So what what am I hearing? What do you want me to do? Yes. I'm uh very disappointed because the last one get done not going to look this long not get done again and decisions are inching on it but yet you get in action and that's not going to get handled but understanding

2:04:48 So, what are we going to do? We're going to have a public hearing. Well, I mean, I have to I think we have to hear from the public. We do have to have a public hearing one. We have to have it anyway. So if we we vote on this right now, we're not saying we're going to do it.

2:05:12 We're going to get the public in there, get your opinions, and then we make a decision. or if we say move forward and have a bug here in automatically says we're doing well there's there's some behind the scenes work that we could be working on as we're scheduling the public hearing if you'd like if you think it's going to go that way but yeah part of putting something like this forward and this happening a public hearing has to happen if there's a public hearing anyway yeah and we have not had a public hearing on this yet we've talked about it at two council meetings now That's really

2:05:49 the extent and part of I think the frustration I just heard back there. Yeah. The frustration I have too is being part of the council. I um the first I've heard about this well not first I've heard about it. I I know that part something been in the works and you haven't known details. [clears throat] When I got my packet for the council meeting, it was the first time I heard that there was that we had offered a, you know, s considering tax payment.

2:06:21 I had not heard of it until I opened up my email on whatever day it was that Holly sent it out the packet. So maybe this could have been avoided if we we would have met sooner instead of waiting for council meeting. What does we meet mean?

2:06:42 Yeah, but we you can't that's the issue. That's why it's so that's why people don't understand. But maybe Don could have called me or Don could have notified everybody. I don't know is lacking. Well, you can't you can't you can't because that's just the way that council is set up. Well, that should have been explained to Barney.

2:07:04 Yeah. So, you know, because he's hanging out here. Yeah. So, then like like he was saying, you know, we should have those meetings, you know, like two at a time because it's like it's like legal or or whatever's legal is what we should do. Yeah. So, the communication is better. Yeah. So, that stuff like this doesn't happen. So, I don't know what to do tonight.

2:07:26 I I I am at a loss. So here's how the process worked and this is how this council has set things up. There's a personnel committee that is the liaison from the council to things like this. So when the initial when when Barney came forward and wanted to present some numbers to us, okay, that happened in a meeting with the mayor and myself.

2:07:50 Okay. Then the mayor talks to his counterpart in the public in the personnel committee. Okay. So now they've talked. That's two. They can't talk no more. They can't call you. They can't call Mary. They can't do that at that point. But so then what they asked me to do was put together what I just put together for you.

2:08:10 So all the council can see what the request is and to be able to know what the terms are. And then at that point, you have since the Friday when the packet comes out to look at all the information over the weekend. This is no different than every other council that's going on all around us. And then if you have questions on it, what we're what I'm proposing now is if that you have a question on something that comes out on a Friday that we get together and help I'll help explain it to you.

2:08:39 I can talk to you. I'm not an elected official. Those two can't talk to you. They used up their deal being on the personnel committee. But this council has also put in place a personnel committee to make decisions or at least promote decisions on behalf of the council before it all comes. That that's that's how this council has been for years and continues to be.

2:09:04 And quite honestly, that's how most councils operate. Well, it's a League of Minnesota policy. Oh, yeah. So, we have to adhere to it. I get that. But you know where I'm at on my more communication. Yeah. And you know how I feel. I don't know. Sure. Because I I really think these meetings that we were talking about earlier on the Mondays and Tuesdays or whatever are going to be very beneficial for you.

2:09:27 So you don't feel that. Yes. Yeah. Coming in here because more transparency, more communication, more understanding still with playing within the rules, right? We can't break open meeting law. So you four can't go have coffee somewhere and have this discussion, right? Those two can or you and Mary can, right? Or we can talk about it.

2:09:49 Meaning two of you and I I would like public meeting on this. So to move forward and talk to the public and I don't know I don't know how to word it to say let's move forward to public hearing to see if the resolution would be possible or considered. Do we have to we need a motion for something?

2:10:12 Does it have to be 30-day notice for a public meeting? No. Can how much notice? Yeah, usually it's 10 days and put out a Yeah, here's what you can do if you want to motion something. If you want to do something tonight, you can say the motion is that we are going to schedule the public hearing as soon as possible and we would like for Scott to get with Rigs to put together a resolution that captures all the things that we need to.

2:10:42 We come to the public hearing. We hear what the public's got to say. And then after that public hearing, you guys tell me what you want to do. And if you guys want to move forward with it, it's ready to go and we're done. Let's do it. That's how we can do it. Yes, let's do it. That's a long Oh, I'm sorry. Yeah. Somebody abbreviate that. I just was trying to give you the details. Uh I don't want to do the motion.

2:11:03 I don't want to speak the motion. to schedule public hearings in 10 days from soon as possible because I'll have to check everyone's schedules. Okay. To bring everything forward. So, you know, basically I would say schedule a public hearing as soon as possible on this topic and we authorize the city administrator to move forward with getting the supporting documents to make that happen.

2:11:28 All right. Make sure motion to ditto that. I second. Okay. Ditto. there. Hi. Hi. Hi. M. All right. Can I just tell the the galley or whatever you guys want to call yourselves? We are just regular people up here. Can I just say I'm not an accountant. I'm not a lawyer. I'm not a So, if we if I look like I am unknowing, it's because I'm unknowing.

2:11:54 I'm I'm volunteering this position. and I care about the city, but um it's a lot of it doesn't probably look good to everyone out there. So, we do the best we can. I am learn we learn every day and I'm learning a lot and so just wanted to make that comment that every time every time.

2:12:23 All right, moving on to the internal loan trans transfer. Yeah, you want me to speak into that? So, [clears throat] basically what you have in front of you here is a internal loan from KMU to EDA to purchase the land that we were talking about south of the city.

2:12:44 Now, the this has already gone through the KMU commission. KMU Commission approved this. The details are $350,000 at 2% interest uh over 10 years with no penalty for prepayment if if things are uh are in such that we can go ahead and pay uh pay that off. In this resolution, you see there's multiple different signatures. You got city signatures, you got uh uh KMU commissioner signatures, and you also have EDA signatures on it.

2:13:11 So, all these would have to be signed, but basically the commission has approved and said, "Yep, we're willing to do that because we think it's that important to be able to get our hands on the land that we were talking about getting so we can uh start to work towards uh an option of more housing. This is all about housing, being able to find more housing. It is a wonderful thing, but I'm more concerned now we just discovered, right?

2:13:37 Yeah. Do we have the 350 the added expenses? Can you really afford that now? Uh so we looked at so if we did that now and then the city started paying them back is going to be you're going to see payments uh that are going in. Um it's a I think it's a very valid question. Um but some of the stuff that we're looking at um these numbers that I was telling you with KMU, they're not tomorrow's numbers necessarily, right?

2:14:03 But but it could be. I know the the substation is three to five years out, but like the transformer and the wiring that has to be put in, that's within the next half year to year and that's not if we can find the transformer. That's the worry. Yeah. Yeah. But you want to pay you have to pay up front.

2:14:24 I I think it's a very valid question. I thought of it myself when it came through there. It's just um you want me to go back and it's a lot to think about. I mean, okay, you they were uninformed these expenses either. So maybe they want to Yeah.

2:14:48 You might go into debt for it, too. Yeah. Not to mention, we need to buy a different piece of property on top. Yeah. And then dogs on KMU. You think it should go back to KMU for further discussion? Yeah. Like I mean I you know I want this but maybe we talk about it at the maybe we should talk about it at the EDA.

2:15:09 But this new 350,000 it's going to sit there now. It's going to make interest on it. It's a valuable piece of property to buy. We own it. We pass it up. We don't know where we're going to be in. Yeah. I mean that is true too. It is ideal and I think Josh has a very valid point. I want to make sure people understand what he's saying. When this substation or some portion of this comes forward, we are not going to have cash money to pay our way through this.

2:15:36 We are going to have to go to somewhere and say we would like to borrow money. That's why that whole negative thing I was talking about, it's hard to borrow money when you're running in the negative. So that's the first thing we got to get corrected, right? is is is running not in the negative any longer. But there's no way we're going to pull this stuff off that we sat in had these meetings in without somebody without borrowing somebody.

2:16:02 There's just no way. KMU's got a nice chunk of money sitting in the bank, but it's not enough to pull all this off, [clears throat] especially when they're working. Not only that, but it is an asset also that property for the whole city itself. All right. Okay.

2:16:24 So, I mean, what do you want to I mean, I don't I mean, I'm not sure what to do with this new It's new information with the Yeah, we just found out and I just found out that I mean, of course, I would approve this because this is what the EDA is so bad. Um, I mean, maybe we should talk, maybe the EDA should talk with KM KMU, you know, like maybe we need to talk about this.

2:16:50 What would you talk about? I don't know. Like what I mean, do they do they still want to do it? I mean, before they wanted to do it and it was approved and it was great, but now we have new information. Well, I don't think I don't think EDA has changed their approach on what they want to do and get that land and you're hearing No, but EDA doesn't really know about this new thing with the industrial park with the electricity, do they?

2:17:14 We don't know that. I mean, I just heard it. Do you know what I mean? But we're talking about the land south of town. We're not talking about and I personally think we should land. Yes, I understand investment. Yeah, I know that. But what I'm saying is they're borrowing them us the money for the land. Yes. South the town. Yes. But like what he's saying is with the new problem at the industrial park.

2:17:35 Yep. They're not going to have them. They do they could use those funds to for this is what you're saying. Yes. And they could. And so that's what you're concerned about, right? Isn't that what you were saying? Am I not thinking? Cool. Funds being there. Yeah, the funds being there. They're two really two separate very but it's coming out of that spond.

2:17:58 No, it isn't. It wouldn't be though. I mean, it's come to buy the land. Yes. Yeah. But the other expenditure that we're talking about would be a loan from a from a third of it would be paid back by there's no way you could pay. Yeah. Yeah. Because we're going to start paying it right away. And and you have a commissioner that's in here talking to it right now, Doug. He's one of the commissioners on KMU and he's saying that and and I and I tend to agree with him that land isn't going to sit there.

2:18:23 Certainly at that place that's a good deal. Someone to like I don't want to be like, "Hey, yeah, spend the money." And then you guys are like, "Good job. Now we can't pay for Yes. I I understand. We need a motion to I want that land. Yeah, we need a motion to approve the resolution you have in front of you." I say I'm going to make a motion and you guys decide whether or not you want to say yes or no.

2:18:44 So I'm going to make a motion to move this over. Okay. I will second it. Okay. All in favor? Where are we moving it? I'm sorry. We're doing the internal transfer from KU. Thank you. So you're approving the resolution. So and I made a motion for that.

2:19:04 Okay. He second it. I. So all in favor? I I motion passes. Was that everybody? There was no Naz. Everybody's in. No. Everybody's in. Thank you for your feedback on that. Yeah. Okay. All right. Moving on to other business.

2:19:27 Um, schedule of upcoming meetings. KMU meeting Tuesday, October 20th at 3 p.m. EDA meeting Tuesday, October 27th at 8 a.m. City Council meeting Tuesday, November 10th at 700 p.m. Township Fire Contract meeting Tuesday, December 1st at 6 p.m. Quinton Taxation public meeting Tuesday, December 1st at 6:30 p.m.

2:19:50 Um, are there any council and staff general comments? I have a I have a couple quick things, Mr. Mayor, if you go ahead. Okay. Yeah. So, question. So, the $5,000 that we moved to the EDA, what what is that? The money we just moved. No, the 5,000. Oh, earlier when it was on the consent agenda. Oh, that was to rem that was to move things into the correct I think if that's the one you're looking at.

2:20:18 That was to move the numbers into the correct deal for the budget. Yeah, that was a recommendation that we needed to move because of some auditing stuff that came back to move it into a different location. We didn't. So, it's not that the EDA is looking for money from the general fund. It was just a no budgeting. It was a uh house housekeeping deal. Yeah. Okay. Cuz I wondered anything else.

2:20:41 Okay. And then what's the taco thing? Is that the wagon that's always come here? No, that's a new wagon. Yeah. Okay. She's mainly coming for the trunk or treat. Oh, got Okay. Okay. That's all I had. Okay. That was two, by the way. Two. Yeah, I'm just I'm just messing with you. Uh the the two real quick things I had as I was looking at my notes after my update is I just wanted you guys to be aware um uh council if you kind of want to hear how things are going on and the culture and all that kind of stuff.

2:21:13 I would encourage you to talk to some employees, you know, talk to some of the guys in KMU or public works or or stat whatever. I I would just encourage you to just maybe get your own flavor what's going on. And then second of all, I just wanted to be prepared. Um, as we're talking about different things that are going on, I want you to guys to be aware that we had an employee that left a little while ago to take another job and do something different uh um from KMU.

2:21:40 And that employee has actually been asking, they want back, they want back to what's going on here. Um, and I think that speaks volumes a little bit about where we're trying to go and what we're trying to do and the culture we're trying to build here. uh that individual um will will end up posting for the job because they're no longer employees. So, we couldn't do some sort of transfer or whatever.

2:22:01 Uh but but there again is another employee that is taking a look at uh what would it take to be able to get back and work with three those three young bucks back there. So, yeah. So, I just think it's important you guys understand kind of what some of that is going on behind the scenes. So, and I would encourage you to talk to some of these folks. So, that's it, Mr. Mayor. taking enough time tonight.

2:22:24 All right. I agree. Okay. Can Can we just go to um just uh losing my words? Can we schedule in between council meetings? Can we schedule a meeting? That's what he's saying. Two hour. Oh, that's he said like if you want to come in like Oh, before this meeting.

2:22:45 Yeah. Before council meeting. Yeah. So remember we talked about work sessions and we kind of talked about that Thursday and we were kind of thinking like well instead I'm sorry were we gonna answer it you can answer have to wait for a work session with Scott if you want to find out come on down and talk to Scott I stop an office probably what two sometimes three times a week whatever that I was waiting I guess for but if it's something coming but if it's something on the council you get the council packet when Holly sends the council packet up and you're reading through it on Saturday and finishing it up on Sunday and you're like, "God, I wonder what the

2:23:20 heck that is." Call me on Monday. Let's sit down or I'll schedule a meeting and you'd come and I'll happy answer any questions you have. So, when you come to the council meeting on Tuesday night, you have your questions answered or it makes a little bit more sense to you. That's what we're looking to do instead of do another Thursday night meeting where everybody has to take another evening. We can do it two between Monday and Tuesday.

2:23:43 We can do these meetings and everybody can get their questions answered. Yeah, that's fine. Um, if she reaches out to me, I can give her highlights what I know, but I can't go on details what I discuss with the personnel committee or I mean I can I haven't called anybody. No. Well, I mean it would be better because like because if you guys talk then and then you talk then that's three.

2:24:04 So you can't do that. We're not talking. Depends on what we're talking about. Same thing. like if she wants to ask you about but if we had a meeting the personnel committee had a meeting and that you two were having a discussion about something and then Deiana says well I got a question on the same thing you can't you can't chat with her but but he's not on council right so you can I can have the convers I can have conversation oneonone with all of you it'd be nice to have to discuss with another council member you can one like so like if you if you have a question you can call him or me or Lee or whatever could ask a question.

2:24:40 Um, but if you call, but if like we us three can't go and have coffee and talk about it, but you could call me and be like, you know, I'm just want I mean I do it to I do it to these guys all the time like or like if I missed a meeting or something or something like I'm doing what happened or what do you think about this like I her and I one day and then call her the next day. Yeah. Because you can't talk about the same subject because then you can then you kind of influence like the whole point is like that we don't have a consensus when we get here.

2:25:09 Yeah. Right. So we get here I'm hearing things. So it's not like we say oh we all agree that you know it's like part of it is yeah you get bombarded and that kind of sucks but then it's kind of yeah you kind of make that decision and then Kim's not telling me how I vote or you you know we all have because collaboration can be so productive. Plus, you can have everything you can, but then it's nice to have collaboration with you, but then I mean, but then you'd have to have open meetings, too.

2:25:32 Then you'd have to hear, you know, I know. So, there's that. I know it's a challenge. We just have to work within the parameters. Yeah. Hear somebody and kind of have your like you're reading a packet and you're thinking about what it is and you kind of have your decision made, but you come here and you find new information, it changes the whole people from the audience and they talk and Like I mean you know that I mean it's and that's why I tell people when people like yell at me out in the world because they do you know they get all crabby and I'm like why don't you come into a meeting and say something because I can't do anything about it right now.

2:26:07 These guys want to meeting. Yeah I want to join the meeting. Okay I make a motion to adjourn. I second. All in favor I Yeah, it's 9:26. Sorry