This transcript has been formatted with the identified speakers based on the context provided. Note: **Neil** (Budget/Finance) is not explicitly on the provided staff list but is the primary presenter of the budget. **Derek Londell** and **Steve Nordin** appear to be the council members/representatives referred to in the dialogue and roll call. [0:28] (Silence) [0:58] (Silence) [1:28] (Silence) [1:58] (Silence) [2:28] (Silence) [2:58] (Silence) [3:28] (Silence) [4:17] **Mayor Matt Montgomery**: Official business. There you go, that's it. I just had this one right here. Give him a white front pen and he'll lose it; that's what he does, he loses it. Call to order for City of Cannon Falls City Council meeting for Tuesday, August 20th, 2024. If I could get a roll call, please. [4:38] **City Clerk Sara Peer**: Zimmerman? Here. Kronenberger? Here. Jeppesen? Here. Johnson? Here. Johnson? Here. Londell? Here. Montgomery? Here. [4:47] **Mayor Matt Montgomery**: Please rise for the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible with liberty and justice for all. [5:06] **Mayor Matt Montgomery**: If I could get a motion to approve tonight's agenda? [5:10] **Ryan Jeppesen**: So moved. [5:11] **Diane Johnson**: Second. [5:12] **Mayor Matt Montgomery**: Got a motion from Ryan, second from Diane. All those in favor, aye? Opposed? Carries. Uh, nobody is uh, present or has signed up for public input, so we're going to skip that and go straight to consent agenda. Consent agenda items may be adopted under one motion as presented or may be removed for discussion and resolution as Council business. Item A: Just and correct claims for the accounting period ending August 14th, 2024. B: Meeting minutes for August 6th, 2024 City Council meeting. Item C: Resolution 2778 accepting a monetary donation of $200 from Harbor Freight Tools to the Fire Department. Is there anything the Council would like to pull down? Not hearing any, I would accept a motion to approve tonight's consent agenda. [5:52] **Steve Nordin**: So move. [5:54] **Mayor Matt Montgomery**: Motion from Steve. I think Lisa was trying to get in; we'll give her the second. [5:56] **Lisa Zimmerman**: Second. [5:57] **Mayor Matt Montgomery**: All those in favor, aye? Opposed? Carries. Gets us to Council business. Resolution 2777, adopting the preliminary tax levy and budget collectible 2025 and setting a public meeting date. Neil? [6:05] **Neil (Budget Representative)**: Good evening. Good evening. Um, I guess we beat the budget to death over the last couple of months and uh, tonight we're uh, going to attempt to certify it to—the preliminary budget to the county. Um, I sent you out an amended uh, general fund budget here. Uh, thank you Derek for catching that um, on line item. So with that said, did everybody get that email I sent out? Correct. Um, so I just wanted to touch on a few things that we haven't touched on for the last couple of months. Um, I'm not going to go over the whole thing again because you've you've heard it and heard it again. Um, remember when we talked about uh, the Water and Sewer and the percentages and uh, so I went back and did a little research and last year, um, when it was so dry, um, the actual water uh, percentages in dollar amounts was up 9%. This year, when we talked about it, I went back and looked and we're down 17% because of all the rain. So that's the volatility of Water and Sewer rates. Um, I know everybody likes the rain because they don't have to water their gardens, they don't have to water their grass, but it hits the water account very hard. So I just want you to know how how it goes up and down based on on weather. So with that said, when you go up on a percentage basis, you know, you're looking over several years because in reality, you know, we're only 8% off for the two, right? But we're still down 8%. So I just want I want you to realize that that's how that works and just giving it an inflationary number every year does not hurt a thing because I can't guess what the weather's going to do. You know, because that's—the revenue side is what really gets uh, can be affected. Uh, you know, the expense size we can say, "Well, no, we're not going to do that project this year because we don't have the money," but the revenue side I have no control over. So just an FYI. [8:40] **Laura Kronenberger**: Can I ask a question on that? [8:42] **Neil (Budget Representative)**: Sure. [8:43] **Laura Kronenberger**: Um, if we're not using as much water, therefore for as much sewer, doesn't the expense of operating that go down a little bit or not really? [8:57] **Neil (Budget Representative)**: Very little. Okay. Uh, all the pumps, all everything has to still run. Okay. So it's it's it's very little. Yeah. Um, so I got another uh, department that we should really talk about and that's the ambulance. And we've been talking about that we throughout this whole project of doing this budget. Next year, uh, um, you'll see that I did balance it, but under miscellaneous revenues, I got about $123,000 that's unaccounted revenues and uh, where we get that money um, is still to be determined. Yeah, we got money for the state, that's a Band-Aid um, that we can use next year. Um, you talked about using some recycling money maybe to buy an ambulance or or do something in that sort which would be a a great idea. Um, next year I know Tim has been waiting uh, you can't wait too long to uh, uh, replace your fleet because now pretty soon you're going to need two ambulances and you just—it's like running uh, 250,000-mile cars; pretty soon they're both done and it just beats up your budget. Same thing with an ambulance or same thing with the the Public Works; you keep that on a rotation and it uh, it certainly pays dividends when you only have a certain amount of money every year. So I know he's still working on uh, that consultant with that consultant. Um, I don't know when he's going to come to present to us to see their findings, but I know he's been uh, in communication with me on certain items. So that's still coming on on that side, but we'll use that uh, state money that we got. That's what it was for to uh, uh, to balance the budget for next year. But you and the future Council—because I know some of them, some of you guys are not going to be here next year and uh, this is kind of a serious issue you're going to have to figure this one out. Um, I'm not going to be here, but the next person is going to have to work with the Council, with the remaining Council and the new council members um, to figure this out. And uh, it's not just a a $55,000 deal. It's—the balance this year according to Tim, what he provided me with revenues, it's 123,000. And you have to pay the staff, otherwise you won't get staff members, right? They'll go somewhere else. That's that's the volatility of of not very many paramedics out there. But then when you pay that and you only get this much revenue, you know, it's it's it's tough. So we're going to have to find find some some other means. And uh, next year I would definitely, whoever's here, uh, bring it up. Bring it up early and make sure we get working on it. Okay. Um, last night at uh, at the Finance [Committee], um, we won't have to do a report because I'm going to cover it tonight. Uh, they had a discussion on the liquor licenses that we had talked about previously um, reducing that. Uh, we talked in in quite a bit about it. What they came up for a recommendation was a 10% reduction in the on-sale license—not the off-sale, the off-sales are a few hundred dollars, they're very small. It's the on-sale that um, is up there um, in price. So that's their recommendation, and if we uh, if we feel that is appropriate for uh, uh, um, for the people or for the license holders, let's do it. We can start working through it because we have to uh, we have to get that all put together and we'll start working on the uh, the fee schedule also because it all goes in one. Um, the other thing they talked about was uh, the donations, I think. Um, and uh, the Chamber has requested additional dollars. And Matt, if you want to take over from here? [13:28] **Mayor Matt Montgomery**: Yeah, uh, we talked about increasing the Chamber's donation from 5,000 to 7,500 to match the Fair. And we discussed, uh, again, the legality of donations has to be available to all the citizens. And we talked about Deck The Falls, the event that the Chamber does, Trick-or-Treat Trot, um, boy, FunFest—yeah, uh, different names that they have for it now. I mean, so the Chamber, and then their breakfast for, you know, for the Chamber, but all the things that they're doing—Maggie is doing stuff year-round. Um, and her budget is obviously not that of the Fair, all those things. But we're just saying for the availability to our taxpaying citizens, if we're making donations, I think that it would be fair to match what we give to the Fair to uh, the Chamber. So if the Council approves that, I think that that's a change that can be made in our budget as long as there's a consensus. Does it need action or just—? [14:28] **Neil (Budget Representative)**: Um, it's kind of like what I I talked about last night. I will find room in the budget if you—and move things around a little bit. Um, and then you will approve it at the final. Uh, we don't need to add additional dollars; um, I'll just move some stuff around that we can. Uh, on a $3 million budget, uh, a couple thousand isn't much. So, um, so the total total preliminary levy for uh, this year is going to be $3,584,900. Um, that's a uh, 4.32%. Um, we tried to keep it into that 4% to 5%. I think we did pretty good. And I I got to commend again the uh, department heads; they came in and they worked hard and they—um, I appreciate that. It makes budget season a lot easier for you guys, a lot easier for me. Um, it goes smooth when we can all work together and and uh, uh, help save the uh, uh, residents in town some money and and still keep the place uh, working good and and running right. So, um, you have a resolution in front of you, number 2777, um, that we would like to to uh, adopt tonight. Our hearing will be held uh, um, on December 3rd at 6:30 and our final budget levy adoption will be on this December 17th at 6:30. So December 3rd will be the public hearing uh, for the people to come in and and talk about it and uh, the 17th will be final adoption. And then once again, and you know, I kind of say this every year, but um, if you want to change it, we can only go down and not up. So um, I think we're pretty set and locked in. Um, I don't expect unless there's something something really on your mind, I think we'll be at $3,584,900. Any questions? [16:42] **Mayor Matt Montgomery**: So 4.32? [16:44] **Neil (Budget Representative)**: 4.32, yup. [16:45] **Steve Nordin**: I'm going to make that a motion. [16:47] **Mayor Matt Montgomery**: Motion from Steve. Is there a second? [16:48] **Ryan Jeppesen**: I'll second it. [16:50] **Mayor Matt Montgomery**: Second from Ryan. Uh, any further discussion? All those in favor, aye? Opposed? And it carries. That gets us to our reports. Uh, Library board? [17:05] **Justin Padgett (Library Director)**: We didn't have a meeting this month. [17:06] **Mayor Matt Montgomery**: Perfect. Finance committee? Like we said, the budget is what we dealt with tonight in City business—uh, Council business. Uh, Planning Commission met last night. Um, forever—oh, what was on there? [17:23] **Steve Nordin**: Well, no no no no. Would you like—uh, I can summarize it unless you'd like to go ahead? Uh, there was a vacating an alley uh, here in the north side of town. There was splitting the lot of Artisan Plaza. There was uh, the Bethel Rock Church at Grand O2 Center. And then there was the racetrack and zoning of urban reserve. All those topics got dealt with. They will be on our consent agenda first meeting in September. [17:37] **Mayor Matt Montgomery**: Yes, d— [17:38] **Diane Johnson**: September 3rd. [17:40] **Mayor Matt Montgomery**: Okay. Uh, Public Works and Park Board met August one. We had Council since then so—oh, it was just a—got it, got it. All right, we'll go around the horn. Jed? [18:02] **Jed Petersen (Public Works Director)**: Mayor and Council. Um, we got several projects around town uh, moving forward on 72nd Avenue Way. They have—uh, working on 72nd Avenue Way. We ask the residents to to have some patience with with the construction as they're they're grading that road and getting that ready. It sounds like next week they're going to start working on the turn lane um, and so yeah, right there in front of the school, so that's great timing. All right, it didn't work out a month ago. Um, the uh, Timber Edge is um, got asphalt down. There's uh, couple foundation—well, foundation, another foundation in and a a home being built. Um, so they're moving along on that one. Uh, John Birch Park is moving right along. Walls looking nice, uh, third base dugouts looking pretty good. Um, and then we got our uh, Third Street. Um, it it's moving at a—it's moving, so. Uh, they're putting in the the storm drain as we we speak and hopefully we'll see curb and gutter and and road in the near future. [19:15] **Mayor Matt Montgomery**: So do you happen to have an estimated date? I've been asked by by multiple people with football season coming. John Birch Park, I know that the equipment is technically out of the way, but people really want to know when they can see it. [19:28] **Jed Petersen**: I don't have a date because they pushed everything back so their timeline is is off. So I'm not—I don't have a an exact date for John Birch. That's fine. Uh, but they're moving right along. I'd assume that they will surprise us. So, perfect. Thanks, Jed. Chief? [19:56] **Police Chief Jeff McCormick**: So last meeting, um, in addition to us having fun here, um, the officers, Fire Department and Ambulance were out doing National Night Out. Probably saw it in the Beacon. Uh, they had a very good time. I believe there were eight parties um, and just a lot of interaction between uh, the EMS services and uh, the community. Primary function for National Night Out is to get people to know their neighbors, which in a community our size isn't that big of a deal um, but you know, in larger communities it certainly can be. And we're very, very fortunate to, you know, have uh, neighborhoods that you know, people pretty much know their neighbors and and you know, have those opportunities together. Uh, see the fire truck, see the Police Department, that type of thing. So, um, my officers told me it was a very good time. Um, aside from that, we pretty much have wrapped up most of our our summer things. That was also the night of Cannon Cruisers. Um, I had a uh, kickoff meeting uh, for Goodhue County's uh, FEMA response. Uh, so that's underway. Uh, I'll be working with Jed and Tony and uh, trying to uh, set timelines for the contractors that we're have doing some of the the clearing up of debris and that type of thing. Um, the uh, the process, you know, for those of you who have been on for a while, we've been through these before; they are not fast working with FEMA. Uh, but as long as we follow all of their rules, uh, we will get reimbursed for uh, 75% of our cost uh, from FEMA. And because this was a FEMA declared event, the state will pick up the other 25% of all the eligible costs. Uh, so at the end of the day, our costs are going to be very minimal. Um, but it's just a lot of documentation and and following the uh, the guidelines to to get us there. So if you're expecting FEMA to send us a check next week, please be patient. Um, it will arrive. They always have been good for their money; um, it just uh, is a few steps we have to go through to get there. But we are going to be get—be getting started in that cleanup process. And I know Jed uh, and his crew had cleaned up uh, along the uh, the Swan area um, that debris that was right by the benches and stuff. Uh, we're be getting the rest of the debris out that's in the river and the walking path bridges, that type of thing yet. So there's an update for you. [22:14] **Mayor Matt Montgomery**: All right, thank you Chief. Sarah? Neil? All right, we'll go around the horn. Laura? [22:18] **Laura Kronenberger**: I'm good, please. [22:19] **Mayor Matt Montgomery**: Lisa? [22:20] **Lisa Zimmerman**: Nothing tonight. [22:21] **Ryan Jeppesen**: Nothing. [22:22] **Derek Londell**: (No comment) [22:23] **Diane Johnson**: Although it was a long meeting last night, I am thankful for the people of Cannon Falls who care enough to uh, attend these meetings and participate. [22:32] **Steve Nordin**: I agree with Diane. Other than that, nothing. [22:36] **Mayor Matt Montgomery**: All right, uh, thank you for filling in. Uh, I dealt with COVID, uh, probably the worst I've had it. Uh, so I appreciate you guys being able to uh, hold down the fort. Uh, uh, same thing, uh, most packed I've seen this chamber in the last six years, so people are very passionate. I thought arguments from both sides were very well received and I—I'm very impressed with uh, how the Planning and Zoning commission handled that meeting. There was a lot of contentious stuff and uh, Steve, you did a great job. Uh, last thing I want to say: thank you to all my council members. The filing period is done, so I know that I'm going to be losing some of you guys going into next year. Uh, I'm going to remain positive; we've got four more months left, so there's still a lot of work to be done in your term. So I want to say thank you for your time. Uh, for the people who have filled out the paperwork to run to be candidates again, uh, and the new candidates, I wish everybody the absolute best uh, wishes, good luck uh, in the campaign season. And for those of you that are coming back, you're stuck with me for two more years. All right, uh, without anything else, I take a motion to adjourn? [23:49] **Derek Londell**: So move. [23:51] **Mayor Matt Montgomery**: Motion from Derek. Second from Laura? [23:53] **Laura Kronenberger**: Laura. [23:54] **Mayor Matt Montgomery**: All those in favor, aye? Opposed? We are adjourned. Thank you, everybody.