HERON LAKE CITY COUNCIL
WEDNESDAY, DECEMBER 1, 2021, 7:00 PM

TRUTH IN TAXATION HEARING

                The hearing was opened at 7:00 PM by Mayor Rasche, with the following Council Members present; Mitchell Ferguson, Glenn Kuhnau, Zach Schumacher, and Carol Wagner.

                Others in attendance were Tom Brown, Jeff Freking, Alan Freking, Lance Baumann, Gail Hansen, Mary Schmid, Lisa Jean Smith, Kevin Rogers, County Commissioner Jim Eigenberg, Jerry Wagner, Police Chief Anthony Fauglid, Fire Chief Chad Diemer, Joe Liepold, John Haberman, Tamara Shelton, and Stacy J. Anderson. 

Mayor Rasche explained the process of setting the preliminary levy in September; the City generally sets it at a 10% increase because when setting the final levy, the City cannot go above the 10% increase.  The mayor continued to explain that at the budget meeting held on November 30, 2021, the City Council was able to work the budget so there would not be a need to raise the City tax levy for 2022.  People from the gallery stated that they had received tax notices that indicate a much higher City tax increase than the 10% the mayor had explained.  Mayor Rasche proceeded to explain that during the 2021 assessment period, which is a review of agricultural, commercial, and residential market changes and assessment statistics, there were eight sales in Heron Lake in the study period which resulted in an increase by the Jackson County Assessor.  Commissioner Jim Eigenberg invited attendees to come to the County Commissioner meeting in Jackson to also raise concerns and/or ask questions regarding property taxes. 

Mayor Rasche closed the hearing at 7:13 PM.

 

REGULAR COUNCIL MEETING

 

                The meeting was called to order at 7:00 PM by Mayor Rasche, with the following Council Members present; Mitchell Ferguson, Glenn Kuhnau, Zach Schumacher, and Carol Wagner.  

                Others in attendance were Tom Brown, Jeff Freking, Alan Freking, Lance Baumann, Gail Hansen, Mary Schmid, Lisa Jean Smith, Kevin Rogers, Jim Eigenberg, Jerry Wagner, Police Chief Anthony Fauglid, Fire Chief Chad Diemer, Joe Liepold, John Haberman, Tamara Shelton, and Stacy J. Anderson. 

 

Approval of Agenda

                Council Member Kuhnau moved, seconded by Council Member Ferguson, to approve the agenda with the addition of property owner tree trimming concerns.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.

 

Approval of Minutes

Council Member Kuhnau moved, seconded by Council Member Wagner, to approve the minutes of the Council Meeting of November 3, 2021, as presented.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.

 

Employee Wages

                Council Member Schumacher moved, seconded by Council Member Ferguson, to approve the following wage increases; 25 cents an hour for bartenders, 50 cents per hour for liquor store manager, part tie police officers, and public works employee, and one dollar per hour for public works supervisor, police chief, deputy clerk, and clerk/treasurer.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.    

 

Final Levy Certification

                Council reviewed the proposed 2022 budget.  The Cities Local Government Aid (LGA) has been certified at $283,769 for 2022.  Additional income is estimated to be $59,565 and expenses estimated to be at $602,022, discussion resulted in:

                Council Member Kuhnau moved, seconded by Council Member Wagner, to approve Resolution 2021 – 27, setting the 2022 City of Heron Lake Levy at $261,176.  This reflects a 0% increase to levy amount of 2021.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

Certifying Assessments

               

Certifying Assessments

Council Member Schumacher moved, seconded by Council Member Ferguson, to approve Resolution 2021 – 28, certifying assessments for unpaid bills.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Zoning Permit/Variance Application

                Council Member Kuhnau moved, seconded by Council Member Ferguson to approve Resolution 2021 – 29, approving the zoning permit and variance application of Dan Jensen, to build a storage building at 132 11th Street NW.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Designate Polling Place

                Council Member Kuhnau moved, seconded by Council Member Wagner, to approve Resolution 2021 – 30, designating to polling place and precinct location for the City of Heron Lake at the Heron Lake Community Center, 312 10th Street, Heron Lake, MN.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

               

Accept American Rescue Plan Aid Funds

                Council Member Wagner moved, seconded by Council Member Kuhnau, to approve Resolution 2021 – 31, accepting the ARPA funds from the State of Minnesota in the amount of $1,122.73, to use in a manner consistent with the Department of Treasury’s guidance.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Accept Donation

                Council Member Kuhnau moved, seconded by Mayor Rasche, to approve Resolution 2021 – 32, accepting a donation from, Federated Rural Electric for $500.00 to Heron Lake Fire Department for battery operated tools.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Southwest Regional Development Commission

                Council Member Schumacher moved, seconded by Council Member Ferguson, to approve the agreement for services with Southwest Regional Development Commission for administrative duties with the Revolving Loan Fund for 2022.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Accounting Software

                Council Member Schumacher moved, seconded by Council Member Wagner, to approve the purchase of QuickBooks Pro Plus 2022 with Payroll Enhanced.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.   

Elementary Baseball Field

                Heron Lake-Okabena School District requested that the City pay half of the expense for maintenance at the elementary school baseball field as the city does use the field for the Summer Recreation program.

                Council Member Kuhnau moved, seconded by Council Member Schumacher to approve paying half of the expense of the Red Ball Diamond Sand for the elementary baseball field.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

 

Fire Department

Fire Chief Chad Diemer reported the following: 1) Hydrants need to be pressure checked; 2) Walkway between buildings should be finished; Communications boards is reporting issues with Armer radios and will possibly sponsor a bill to help with communications; 3) Has heard that OSHA has been visiting Volunteer Fire Departments, will request a mock OSHA inspection with MMUA Trainer Mike Sewell after training on December 23, 2021; 4) Will be brining Santa to the Library on December 11, 2021; 5) Requested that Council declare the 1981 Chevy Van as surplus equipment so that it may be sold.

Council Member Kuhnau moved, seconded by Council Member Schumacher, to declare the 1981 Chevy Van as surplus property.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.  

 

PeopleService

                Operator Joe Liepold reported that the following: 1) Water usage is up, possible service line leak; 2) Discharge completed on secondary pond, and refilled, samples have passing values; 3) Cleaned floats and pumped down lift stations to decrease sludge build up.     

 

Public Nuisance Properties

                Police Chief Fauglid reported that he will be drafting a letter to property owners to have the property cleaned of remnants of a fire and he also stated that he is working with two other property owners to have the property cleaned. 

 

Police Department

                Police Chief Fauglid stated that November was a slower month, and he is currently working on a burglary care with juveniles.    

 

Other Business – No action taken

                Ambulance – Ambulance Director Joe Liepold reviewed a recent ambulance rate study he has been working on, further discussion will be held when setting the 2022 Fee Schedule.

                 

Tree Ordinance/Bills

                Tom Brown stated that he had trimmed his own tree above the required 14-foot height over the street, and yet he was billed for trimming completed by party hired by the City.  Mr. Brown expressed concern over the high cost of the trimming that he was charged for. 

                Alan Freking and Kevin Rogers expressed concern about the rates being charged which they felt were too high.  

                Lisa Jean Smith asked why tree trimming over the streets was not an operating cost of the whole City so it could be spread equally.  Ms. Smith also questioned whether the job had been bid and where the transparency was regarding the charges; it was explained that the job was bid but only one bid was received due to timeline and scope of the job.  Ms. Smith also requested that the City obtain further information regarding the charges.

                Jeff Freking stated that his tree was left with a large stump that he is not happy with it, and he requested that council look at the bad job of trimming that was done.  He also stated that he maybe had two twigs that were lower than the required 14-feet.  Council Member Schumacher agreed to meet with Mr. Freking on December 2, 2021, to look at his tree.  Mr. Freking continued to express his displeasure regarding the trimming that was done on his property.  Council inquired if Mr. Freking was willing to join the tree committee when appointments are made for 2022, to which Mr. Freking agreed.        

                Mayor Rasche explained that the reason this is not a city-wide operating cost is because taxes would need to be increased to add tree trimming into the budget, and that would not be fair to businesses and property owners in town who do not have trees or who keep their trees trimmed.  He offered the suggestion of starting a petition to see if at least 50% of the property owners will sign that they want their taxes to be increased to cover the cost of tree trimming by the City in the future.    

Mayor Rasche also directed Council Member Schumacher and Public Works Director to meet with Johnson’s Tree Service to address some of the concerns discussed during this meeting. 

                               

Claims

                Discussion was held regarding the bill for flooring at the library, staff was directed to code it to the sewer project completed causing the flooring needing to be redone.  Discussion regarding the office/bathroom to be completed in the City shop; staff explained that there is $8,000 in a general equipment fund within the Capital Outlay Savings fund that has not been used for several years resulting in:

                Mayor Rasche moved, seconded by Council Member Kuhnau to transfer funds from General Equipment of Capital Outlay Savings Fund to be used to complete the office/bathroom in the city shop.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried. 

Mayor Rasche moved, seconded by Council Member Kuhnau, to approve payment of claims apart from Johnson’s Tree Service, holding this payment until after meeting with the tree committee, totaling $281,450.60.  Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays.  Motion carried.                                        

 

January Council Meeting

The next Council Meeting will be held on January 5, 2022, at 7:00 PM.

 

Adjourn              

                Council Member Schumacher moved, seconded by Council Member Kuhnau, to adjourn at 8:56 PM. Vote on the motion: Rasche, Ferguson, Kuhnau, Schumacher, and Wagner, aye; no nays. Motion carried.

Submitted by: Stacy J. Anderson, Clerk/Treasurer

Approved: January 5, 2022     

Rasche, Ferguson, Kuhnau, Schumacher, Wagner