CITY OF WANAMINGO
City Council Regular Meeting
Monday, July 27, 2026, 6:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes @6:00PM
PRESENT: Council: Ryan Holmes, Stuart Ohr, Jeremiah Flotterud, Rebecca Haugen, and Eric Dierks
City Administrator: Michael Boulton & Deputy Clerk Laurie Musselman
ABSENT: None
ALSO PRESENT: Brad Kennedy, Justin Slotts – SEMMCHRA, and Beth Haas – News Record
ADOPT AGENDA: Ohr motioned to adopt the agenda, seconded by Flotterud. Passed 5-0-0.
PRESENTERS:
A) Justin Slotts – SEMMCHRA – Heritage Hills Report
1) Presented 2026 projected expenses and transfers from the Operating Reserve Fund – required yearly as part of transfer agreement.
2) Operating losses ($5,741) and capital improvement needs ($33,000) for 2026 are projected at being up to $38,741.00
3) In the past 17 years since SEMMCHRA took over operations the City of Wanamingo has contributed $455,190 toward operations of the facility
4) SEMMCHRA is asking for a transfer of up to $38,741.00 from the operating reserve for projected losses and projected capital expenditures. The capital items include replacement of A/C units, leaking issues around the garage, and corrections needed to the concrete by the garage. The property is 30 years old in 2026 and continues to need capital improvements.
5) 2027 Levy Request will be $25,000.
6) The facility has been relatively full, with few monthly vacancies.
Flotterud asked when SEMMCHRA intends to refinance the bond for the facility. Slotts was unaware that SEMMCHRA had intentions to refinance. Boulton stated that the long-term plan was to refinance with other SEMMCHRA properties. Holmes stated that if the bonds were refinanced the City levy would end. Slotts said that he would investigate the refinancing. Flotterud asked how long the bond payments went. Boulton stated that roughly $73,000 bond payments ran through 2034. Boulton stated that the bond has roughly $515,000 owed at the end of 2026. Flotterud stated that the final payments would be coming soon. Holmes stated that he was aware of the drainage issues as he has served on the neighboring church building committee. The church is dealing with drainage issues as well.
B) Lily Cook – Text My Gov – City Wide Text Proposal Presentation
1) Presented a text communication browser portal system to communicate with the public.
2) The public would be able to receive updates and alerts from the City by signing up for texts.
3) Residents could text a keyword to sign-up for text alerts. There would be a local number assigned that residents could text concerns or maintenance issues.
4) The text alerts could help with sensitivity items such as watermain breaks and disruptions in service.
5) The proposal does not involve apps or accounts while the users can opt out through texts.
6) Organic promotional materials would be sent to the public to opt in. The City could provide contact information to send a message to residents asking to opt in to the texts.
7) 40%-60% of residents usually sign up for the text service.
8) $2,2000 annual pricing. One time set-up cost of $1,100 (or $250 if approved in July).
9) Several Cities in Minnesota utilize the service including Hayfield, LeRoy, and Pine Island.
Ohr stated that the cost is hard to justify when looking at budgets in comparison with property tax increases. Holmes stated that he likes the idea of such a service and it would be a great tool for the City. However, he agrees that cost is too high. Flotterud likes the service but also thought it would add to staff time. Flotterud stated that there might be other cheaper services or options to create such a service with A.I. The Council agreed that they do not wish to move forward with the proposal.
NEW BUSINESS:
1) 2027 Budget discussions
A) City Council looked at the staff proposal of the 2027 budget, Memo on the 2027 proposed budget, and proposed 2027 levy. The proposed increase to the levy is 4.80% ($1,230,000 to $1,289,000). There are concerns with revenues not being able to cover inflationary or capital needs for expenses. The proposed 2027 levy does not reflect nor plan for roadway and utility improvement future needs beyond the 2027 project. The general fund, Street Capital, EDA, and Debt Service Fund 337 (new 2026/2027 fire department rescue pumper) are proposed to increase as part of the 2027 levy. The City will no longer levy Debt Service Fund 323 or the Debt Service Fund 332.
B) Administrator Boulton explained several line items that had either changed from the previous year or needed an explanation. Total general fund expenses are proposed to increase from $1,051,367.34 in 2026 to $1,125,108.57 in 2027. The fire department budgeted expenses are proposed to increase by roughly $7,139.76 (5.28%) from 2026. This is due to $1,000 increase in small tools and minor equipment, $500 increase in seminars and training, $1,600 increase in contracted services, $300 decrease in workers comp insurance, and a $300 decrease in natural gas. $30,000 was added to the bond repayment in 2027 for 337 truck bond repayment funds. There are no scheduled elections in 2027, potentially saving $3,000. The ambulance contract is expected to increase from $22,260 in 2026 to $25,050 in 2027 ($2,790 increase). The police contract increases from $145,236 in 2026 to $163,090 in 2027 ($17,854 increase). Public safety is expected to increase from a range of roughly $27,788.76. Proposed employee pay raises will roughly average 4%-5%, depending on job ($12,000 – general fund is roughly 60%). Health insurance premiums are projected to increase by roughly 15% ($7,500 increase). The audit budget will increase from $29,000 in 2026 to $32,000 in 2027 to cover actual costs. The attorney budget will increase from $23,000 in 2026 to $26,000 in 2027 to cover costs. The Council Street Maintenance plan has proposed to spend roughly $30,000 of the $80,000 for chip sealing/crack filling/manhole adjustments. The remaining $50,000 of the street maintenance will be rolled into the 2027 Roadway and Utility Improvements Project. The snow removal budget will increase from $14,000 in 2026 to $18,000 in 2027 to cover actual costs. The electric for streetlights will increase from $36,000 in 2026 to $37,000 in 2027. The park contracted services will increase from $21,500 in 2026 to $25,000 in 2027 to cover new mowing contract. The City has committed to $10,000 for playground equipment at Prairie Ridge Estates in either 2027 or 2028. The general fund is projected to have a slight surplus (less than 3% - policy), depending on potential unplanned transfers at the end of 2027. The Council does need to be conscience of keeping the reserves near the agreed minimum of $650,000. A portion of Emerald Valley V Addition is planned to be completed by the developer. The City is upfronting the cost with reimbursement from the developer and while a special assessment will be levied onto a separate parcel(s) owner. The City will be contributing roughly $20,000 in special assessment costs plus additional professional service expenses.
C) Administrator Boulton explained that the new Dollar General store has a taxable value of $956,000 in 2025. This would bring in roughly $39,000 (slightly less than half City portion) in property taxes (0.041). The former Wanamingo school will become a taxable property with a taxable value of roughly $1.63 million. This would bring in roughly $60,000 (slightly less than half City portion) in property taxes (0.041). Several commercial projects took place in 2025 adding to taxable value including Mead Johnson new affluent building and other renovations, Jake’s Hometown liquor renovation. New construction within the community over the last year (8 new taxable homes in 2025) should aid with the increase to the taxable market value increase. The new construction should more than offset roughly the proposed levy increase (5.75% of the proposed 4.80% increase). There is potential for a decrease in the City tax rate from 2026 to 2027. The Council will see how the finalized 2027 market value rates compared to the proposed levy increase will affect property values based on $100,000 levels in October. The Council will be setting the initial levy at the August meeting and could stay at the same levy amount or decrease at the December meeting. The Council could not increase the levy from August to December.
D) Boulton stated that Local Government Aid will be slightly higher ($302,649 in 2026 and $303,097 in 2027). Small Cities Assistance Account distribution will be funded for 2027 and is estimated at $22,763 (down from $24,554 in 2026). The Small Cities Assistance Account provides funding for construction and maintenance of roadways in cities with a population less than 5,000.
E) Administrator Boulton shared concerns with continued inflation and meeting capital needs while balancing property taxes from rising too quickly. Boulton was optimistic on real growth in 2025 that will affect the 2027 taxable market value increasing. Future years will depend on growth. Boulton stated that the proposed increase in the levy would easily be spread out on growth of new property taxpayers. Boulton shared concerns with upcoming potential costs that are not budgeted including pool repairs ($10,000-$20,000), Emerald Valley II Addition phase V improvements (fronting part of assessment costs), and 2027 Roadway & Utility Improvements. The expectation would be future levy needs to pay back the funds if expenses come to fruition in 2027.
Holmes stated that he and Boulton have had several conversations regarding keeping the levy increase to a minimum in 2027 past levy growth and a desire to ease the tax rate. Holmes stated that costs have still increased for the City, but that the City must be realistic on an increase to property taxpayers. Flotterud stated that he wished to have a future discussion with the auditor on how to divide out the interest earned into account. Flotterud shared that he wished to see a higher percentage shared with the general fund. Boulton stated that it might be better for a discussion to occur at Audit Committee level when the auditor is working on field work in January/February 2027. Flotterud stated a desire to eliminate fund 210 Revolving Fund and move the funds ($62,570) to the General Fund. Flotterud stated that this transfer would be the fund close to $650,000 (Policy maximum reserve). Boulton stated that the EDA should be consulted before the Council consider action as this is one of their economic tools. Flotterud stated that no loans had been given out in the past 15-20 years. Boulton stated that he could place the item on the August EDA meeting agenda. Boulton suggested that Council representatives on the EDA, Ryan Holmes and Rebecca Haugen, explain the Council concern to the rest of the board and make a formal request. Ohr shared his concerns with upcoming capital needs such as the swimming pool, sweeper, pay loader, plow, leaf sucker, and Chevy one ton truck. Ohr stated that each could have significant expenses in one year and that the equipment fund needs to build a balance to replace/repair the capital items when needed. Kennedy stated that the main pool leak was repaired and cut the water loss in half. Kennedy stated that he has concerns keeping the pool open long-term without significant improvements/cost. Boulton stated that an update from the engineers and sewer board will be coming to each of the Councils (Goodhue, Pine Island, Wanamingo, and Zumbrota) at the August or September meetings. The engineers are putting together scenarios on the $12 million bonding appropriation from the State toward the project. The board intends to seek additional bonding dollars with the new legislature. In addition, we are planning toward addition PSIG and WIF funding to be included. The complexities of funds are spent compared to future fund eligibility creates a web to be unwoven to maximize future funding. The sewer fund had $787,000 by the end of 2025. Kennedy stated that the televising of the clay sanitary sewer lines shows immediate replacement needs of a couple of blocks. Boulton stated that the 2027 Street and Utility Improvement project could shift the location of work because of the need. Ohr stated the reduction of inflow and infiltration of ground water would save sewer users money in the future. Boulton stated that the plan is to slowly increase the sewer rates to build a reserve to pay some of the initial costs with new plant. Boulton also stated that the other reason was so rate increases are lessoned for residents at the time these projects are completed. Boulton also noted that the Council's intentions are to increase the utility rates incrementally for future wastewater treatment plant and clay sanitary sewer line replacements. Boulton also recommend an increase in the sewer base rate from $34/month to $36/month. There is also a recommendation to increase the water base rate from $26/month to $27/month to help ease the water fund deficit. Boulton noted that new construction may not continue at the same rate in the next few years and will in turn slow the levy growth. The tax rate growth could be captured in future levies for 2028 (5.43%) and 2029 (5.52%). The goal is around 5% levy increase each year. The Council directed Administrator Boulton to bring the recommended budget and levy information at 4.80%, or $69,000 levy increase in the 2027 proposed Levy Resolution and 2027 Proposed Budget.
RESOLUTION:
26-043 = Approving Updated 10-Year Capital Improvements Plan for the City of Wanamingo: Flotterud moved to approved, seconded by Haugen. Capital Improvements 10-Year Plan Discussion took place. Items added in 2026 were the Medical Center Parking Lot ($40,000), Fire Hall SE Landscaping & Concrete ($25,000), and Pressure Washer ($30,000). The fire department helmet replacements are complete and will start over on the 10-year replacement program. The fire department rescue pumper truck price was updated to match the $1,041,000 number. The 2027 pickleball court estimate was increased to $100,000 (plus $25,000 donations). Boulton stated that the 2026 levy includes funds for 2027 Riverside Park parking lot rehab. The funds will come from budgeted $150,000 set aside for debt service on the future street project (Fund 336) and the 2026 budgeted $50,000 general fund for street & road expenses capital (Fund 101). Boulton stated that a future pickleball court dirt work could start in 2026 with phase 2 of Emerald Valley V Addition Street and Utility improvements. The concrete work, lights, fences, benches, painting, and nets could be in 2027. The years for dirt work and construction could be pushed to 2027/2028, depending on timing. Boulton stated that the Riverside Park parking lot rehab is scheduled for 2027. The parking lot needs to be replaced, including corrective action on the aggregate base. Boulton stated that a curb/gutter could be installed as a buffer for the parking lot and park. The curb/gutter could be sloped toward both the east and west to send the surface water toward the low points. Boulton said that the levy for future street fund 336 could be utilized to accomplish this capital project along with a street project that could be bonded for in 2027. Passed 5-0-0.
26-044 = Declaring Intent to Issue and Sell a G.O. Certificate of Indebtedness, Series 2026A, and Taking Other Actions in Connection Therein: Dierks moved to approved, seconded by Haugen. Boulton stated that the City is Working with Security State Bank on favorable terms for private placement of general obligation certificates of indebtedness for the $1,041,000 fire engine pumper. The City intends to borrow $900,000 while utilizing cash for the remaining $141,000. The bond payments will be made with a combination of City Taxes, Township Contract Taxes, donations, and existing funds. Boulton stated that the notice is to be published ten days because the City intends to borrow more than 0.25% of the estimated market value of taxable property. Passed 5-0-0.
26-045 = Approving Combination of Parcels: Haugen moved to approved, seconded by Flotterud. Boulton stated that the request complies with the requirements of applicable zoning codes in the R-2 Residential District. Passed 5-0-0.
OLD BUSINESS:
Affidavits of Candidacy will be accepted at the City Hall (401 Main Street) during the filing period of July 14, 2026, through July 28, 2026, at 5:00 p.m. for the following City Council seats:
Mayor – 2 Year Term
2 At-Large City Council Positions - 4 Year Terms
Candidates’ names will appear on November 3, 2026, General Election ballot.
Listed below are the filing requirements for those individuals seeking public office:
1. Candidate must be an eligible voter.
2. Is, or will be on assuming the office, 21 years of age or more.
3. Maintained residence in the district from which the candidate seeks election for 30 days before the General Election.
Candidates must file an Affidavit of Candidacy and pay a $2 filing fee at City Hall, 401 Main Street, Wanamingo, MN. Office hours are 7:00 a.m.–4:30 p.m. Monday – Thursday and 7:00AM-12:00PM Fridays. Filings will be accepted until 5:00 p.m. on July 28, 2026.
National Night Out will take place August 4th from 5:00PM-7:00PM at the Wanamingo Fire Hall. The annual Fire/City/Township budget meeting is scheduled to take place following National Night Out, 7:00PM, at the Wanamingo Fire Hall. The 2027 proposed budget and the new Fire Pump Truck proposed financing plan will be discussed.
Flotterud shared that there is a desire to purchase or utilize the Mingo View former water tower site. Flotterud asked what the plan was for the site. Boulton stated that the site is one of only a handful of potential stating locations that the City owns. Boulton stated that the site is not in City limits, but rather in Minneola Township. Sheldon Lunde Lawn Care mows the site for the City. Kennedy stated that the hydrant is located on the property. Kennedy stated that there is a significant buried structure from the old water tower underground. Flotterud asked if the neighbor could park on the driveway. Council did not have objections to the neighbor periodically parking on the driveway. Kennedy stated as long as the neighbor knows that they need to move it if the City needs access.
*Next City Council meeting on 8/11/2025
Adjourn: At 7:56PM a motion to adjourn the meeting made by Ohr and seconded by Haugen. Passed 5-0-0.
Signed: Attest:
____________________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
