Also in attendance were the following: Jim Schulz, Herman Lensing, Dennis Poeping and Rodney Atkinson.

Staff persons on hand were Paul Hetland, Joe Rigdon, and Joel Dasher.

The Pledge of Allegiance was said by those in attendance.

Agenda

Humbert moved and Goebel seconded a motion approving the meeting agenda. Discussion offered. Motion carried 5-0.

Approval of the Minutes

Goebel moved and Tim Hennen seconded a motion approving the meeting minutes for November 29, 2006. Discussion offered. Motion carried 5-0.

New Business

Open Public Forum

No one addressed Council.

2007 Budget Overview – Approval

Paul Hetland, Clerk/Treasurer and Joe Rigdon, contracted Finance Officer presented information pertaining to a proposed 2007 City Budget and Final Levy. Council asked several questions regarding expenditures in 2006 and staff responded to each noting that many were one-time expenses for projects, thus many were not reflected as potential expenses in the 2007 budget.

Rodney Atkinson stated his displeasure that there were little funds dedicated to street sinking funds and he was in favor of having taxes raised in the future to help build up those funds. Hetland explained that with the number of major street projects in the last 6 years alone that the funds saved were completely utilized and the rate of expenditures for these projects and holding taxes to a reasonable level outpaced the ability to put more monies into sinking funds. Hetland further noted that the 5 to 10 year goal is to bring the tax capacity number a little lower, assuming valuation continues to grow which it is expected, and more taxes can be raised thus allowing more funds to be dedicated for future street projects. In the meanwhile, Hetland strongly advised that major construction and reconstruction of streets be suspended until that time. Fortunately, the vast majority of streets should not need repair in the next 5 to 10 years. The County Road 11 project will largely be matched by Stearns County funds or covered with assessments. That project is currently scheduled for 2010 under the Stearns County Highway Department's 5-Year Plan, but it may be pushed forward in time if the County doesn't have available funds or per the City's request. Annual updates of County and City finances will determine that timeline. Atkinson understood and agreed with the current situation and understood the future timeline. Hetland asked Council to discuss the matter of taxes with property owners in the next year to gauge a comfort level of raising taxes for the sole purpose of putting more into street project sinking funds.

Hetland made further mention to the fact that the State of Minnesota is paying the City approximately $18,000 less annually in 2007 from what was being paid in local governmental aid (LGA) in 2002. He also noted that there was a $50,000 cut in the General Fund budget from 2004 to 2007 with a $15,000 cut in the 2007 General Fund budget from 2006 to 2007 alone. The large amount of these cuts has been absorbed in what the City is able to put away in savings accounts for future street projects and equipment.

Rigdon commented that the City currently has a reserve equal to the amount of one-year's expenditures for the City. The Office of the State Auditor recommends that cities have no less that half of the amount of annual expenditures in reserve at any one time. With that, Hetland and Rigdon reported that the City's fiscal condition overall is strong, but efforts will and should be made in the next few years to be stronger.

Hetland and Council thanked Joe Rigdon for his back-up and supplemental information as a part of this budget process.

Goebel moved and Joe Hennen seconded a motion approving the 2007 Budget as presented in the amount of $333,090.38 for the General Fund, $10,000 for the Freeport Economic Development Authority, $95,000 for the Water Fund, and $96,530 for the Waste Water Fund. Discussion offered. Motion carried 5-0.

Goebel moved and Humbert seconded a motion to approve the 2007 Final Level in the amount of $293,112 which is broken down as $130,000 for the General Fund, $9500 for the EDA, $78,909 for the Main Street Bond, $50,000 for the 2003 Street Improvements, and $24,703 for the Welle Country Acres bond. Hetland noted that slightly over half of the amount is fixed to pay for street and economic development debt service projects. Motion carried 5-0.

Reports

City Engineer's Report, Jim Schulz, SEH

Schulz and Hetland gave an update as to the proposed rules and its process of the Sauk River Watershed. Schulz commented on the originally proposed phosphorus discharge levels were extreme and at an amount lower than known human history in the region. The adjusted number is still low, but more manageable. There are several other points that have been suggested in the document that would make drastic changes for the watershed area for all parties, but with the Watershed's proposed implementation timeline of February 2007, there is little time to properly understand the proposed changes. Staff suggested and Council agreed that the Watershed should be highly encouraged to slow down the process to fully understand and shape the rules before they are implemented. Hetland noted a couple conversations in the preceding few days with Stearns County Commissioner Don Otte. Otte formally invited all cities to speak with the County Commissioners at their next meeting on December 19, 2006. Hetland state that he would attend this meeting. Hetland also noted that the Sauk River Watershed District (SRWD) would be holding their next meeting of the their Board of Managers that evening at 7:00 P.M. of which he encouraged everyone to attend both meetings.

Worms noted a recently heard statistic that if the rules were passed our recently built storm water holding pond in the Industrial Park would need to grow from 7 acres to 21 acres, tripling in size.

Goebel needed to leave the meeting at 9:00 P.M.

Public Works Director, Joel Dasher

Dasher provided a written report which is on file for review.

Dasher noted that there is a need to know how much waste water is going into the ponds. No action was taken.

Dasher presented information regarding the proposed generator. A question was raised on whether having a generator would be an extra maintenance issue or burden onto the City, and Dennis Poeping mentioned that there is little reason for maintenance on the type of generator proposed.

Dasher also reported that all traffic and street location signs have been reinstalled in the City.

City Clerk/Treasurer's Report, Paul Hetland

Hetland provided a written report which is on file for review.

Hetland noted in his written report that the property owned by R & W Co. LLC was made into compliance by the owner as of November 30, 2006 and Council accepted the report and letter provided in their Council packet without objection.

Hetland noted that the Business Development Infrastructure agreement was just received with some instructions and that he would follow-through and complete the information the following day. Council requested that the documents be hand-delivered to DEED upon their completion.

Consent Agenda

Humbert moved and Tim Hennen seconded a motion approving the Consent Agenda which included the following:

  • Claims in the amount of $105,724.43
  • Annandale Payment Application No. 5 in the amount of $ 88,019.87 which is through November 10, 2006

Discussion included Worms asking about when the contractor is expected to put the grates back on the culverts along 7th Street SW. Dasher mentioned that debris collects as a result of the culvert grates. Schulz recommended that the grates not be reinstalled and the next payment reflect a deduct for the amount, but Schulz noted that he has not seen the invoices yet for that part of the project. Riprap and fabric was paid. Dasher noted that he installed a stop sign in the Industrial Park on the west end of 7th Street SW. Motion carried 4-0.

At 9:41 P.M. Worms moved and Humbert seconded a motion to adjourn the meeting. Motion carried 4-0.