City of Wanamingo
Regular EDA Meeting
Monday August 12, 2026
6:00 P.M.
Wanamingo City Council Chambers
401 Main Street
Wanamingo MN
PRESENT: Brian Gudknecht, Rebecca Haugen, Ryan Holmes, Jim Kittelson, Amy McDonald, and Josh Schaefer
ABSENT: Annette Fritz
ALSO PRESENT: Michael Boulton, Laurie Musselman, and Peter Grimsrud.
Brian Gudknecht called the meeting to order at 6:01 p.m.
Pledge of Allegiance followed.
Amy McDonald was administered the oath of office by EDA director Boulton.
ADOPT AGENDA: Schaefer motioned, seconded by Kittelson to adopt. Approved 6-0-0.
CONSENT AGENDA: Haugen motioned, seconded by Kittelson to approve. Approved 6-0-0.
PRESENTERS: None
NEW BUSINESS:
Resolution 26-05 - Adopting a Proposed Budget for the Wanamingo EDA Accounts for the Fiscal Year of 2027. Kittelson moved to approve, seconded by McDonald. Boulton provided an update of 2027 proposed changes to the income and expenses for account numbers 251, 331, and 604. Discussion took place on the budgetary needs of the EDA in conjunction with the proposed 2027 City Levy. A detailed preliminary 2027 City of Wanamingo budget memo, that included the EDA accounts, was presented by Administrator Boulton. Boulton stated that the EDA fund had an $18,753 balance at the end of 2025. The 2026 budget should show a slight, $3,000 surplus. The 2027 budget for the EDA fund has another planned $3,000 to $4,000 surplus that increases the fund balance. Boulton stated that the goal was to get to a $25,000 fund balance in the EDA fund. Boulton stated that the EDA fund carried a negative balance for several years. Boulton stated that this gave a small tool to the EDA to promote development. Boulton stated that future budgets will plan to be closer to $0 surplus unless the fund balance is spent. Passed 6-0-0.
OLD BUSINESS:
Administrator Boulton provided a memo on Fund 210 – Revolving Fund Loan. The Fund 210 - Revolving Fund Loan was created in October 2005 with $45,000. The fund was created by the City Council in conjunction with the EDA. The $45,000 was originally moved from the general fund to the newly created Fund 210 – Revolving Fund Loan. The Revolving Fund Loan was intended to assist small business creation and expansion with short-term (gap) financing. Each loan initiated with an application process, required collateral, and if approved a loan agreement (recorded at Goodhue County).
The fund made one loan for $42,000 in October 2005. The loan was paid off in 2018. The original ten-year loan payback took thirteen, including gaps in payments. After working with the borrower, dropping significant interest, and modifying terms of agreement the original agreement payments resumed. At the end of 2025 the fund has $62,570 cash balance.
The 210 Fund has not been utilized since 2018 but remains an economic development tool for the Wanamingo City Council & EDA. The City received $100,000 in State Funds to create Fund 211 – MIF Revolving Loan. The funds were part of a larger 2018 loan for the Maple Island Creamery warehouse expansion in 2018. The City received $100,000 when the loan was paid back to the State in 2022. The MIF Revolving Loan funds have specific State regulations and processes to how it can be utilized. The 211 Fund cannot be dissolved and can only be utilized for revolving fund loans.
The Council has discussed dissolving Fund 210 - Revolving Fund Loan several times over the last two years. The original Fund 210 – Revolving Fund Loan has a redundancy since the City received $100,000 to create Fund 211 – MIF Revolving Fund Loan. The Council has had discussions on placing the remaining $62,570 in the general fund or utilizing the balance on capital expenditures. No formal vote has taken place as there was no consensus for a course of action. City staff has recommended involving the EDA in any discussion regarding the use or dissolving of the 210 – Revolving Fund Loan. The revolving fund loans are tools of economic development for the EDA to attract and maintain businesses.
At the July budget meeting staff were instructed by the City Council to place Fund 210 – Revolving Fund Loan on the EDA agenda for discussion on the future of the Fund. The EDA should discuss their thoughts on potential future use of 210 – Revolving Fund Loan. Boulton stated that the Council does not intend that the EDA decide at the August meeting. The EDA can discuss and place the item on a future meeting (December) agenda. The goal would be to have a recommended course of action by the time of audit field work for the 2026 audit in February. If a recommendation to dissolve occurs by both the Council and EDA (potentially January 2027) the 2026 Financials (Audit) would transfer the funds to the approved destination. If there is no consensus the 210 – Revolving Fund Loan would remain as is.
Holmes stated that the Council has been concerned that the funds are not being utilized. Kittelson stated that the fund was set up for small business start-up/expansion stop gap financing. The revolving fund loan is a tool for economic development as a short-term loan for small businesses. The point of the loan is to be paid back to the City/EDA to be reutilized. Gudknecht asked who knows about the revolving fund loan to be able to utilize it. Schaefer said it would be nice to publicize the availability of the loan. Kittelson stated that the amount of available funds was never intended to advertise for general use, but to utilize assisting businesses as a last financing resort. Kittelson stated that Fund 211 – MIF Revolving Fund Loan has restrictions for use that Fund 210 – Revolving Fund Loan does not have. Kittelson said the State placed the restrictions on Fund 211 – MIF Revolving Fund Loan while the City/EDA make the rules for use on Fund 210 Resolving Fund Loan. Holmes stated that there may be a way to utilize Fund 210 – Revolving Fund Loan in conjunction with Fund 211 - MIF Revolving Fund Loan. Schaefer asked to see the applications and policies for Fund 210 – Revolving Fund Loan and Fund 211 – MIF Revolving Fund Loan to compare at the December EDA meeting. The consensus of the EDA was that if Fund 210 – Revolving Fund Loan could be utilized in the future that the Council should not dissolve the fund and transfer the money to another fund.
There being no further business Schaefer made a motion seconded by Kittelson to adjourn the EDA meeting at 6:18PM. Approved 6-0-0.
________________________ ______________________
Brian Gudknecht, President Michael Boulton, Director
