What happened
- Work session called to order at 6:00 p.m. by Acting Mayor Richard Nielsen; adjourned at 7:23 p.m.
- Entire session focused on financing and assessments for the Red Wing Avenue project
- Assessment Option 1 (current policy): 50% of street costs plus 100% of individual sewer/water service lines and shut offs
- Assessment Option 2 (based on 2016 1st Street project): 27% of street costs plus 100% of service lines and shut offs
- Council consensus: reduce street assessment from the policy 50% to 32%
- Engineers directed to use 32% in generating the feasibility report; estimated cost to be presented at the public hearing
- Final assessment cost may be adjusted later but must be the same or less than the hearing amount
- Proposed assessment amount to be in the final report considered for adoption at the August Council meeting
- Administrator Vahlsing reviewed using sewer, water and storm sewer enterprise funds for part of the debt service, with proposed rate increases
- George Eilertson of Northland Securities reviewed bonding terms of 15, 20 and 25 years; bonds likely issued after bids, probably spring 2020
What was asked 10 raised · 3 settled
Every question, assignment, pending figure and unsourced claim from this meeting, quoted from the record, each checked against the county, census, listing, bid and budget data we hold.
The first assessment option was based on the current assessment policy, which would assess 50% of the street costs and 100% of individual service lines and shut offs for sewer and water to houses and businesses.
Rhein described the first assessment option based on existing city policy.
The assessment policy summary in the September 10, 2024 packet confirms the claim: Street and Site Reconstruction 50% assessable, Sanitary and Water Services 100% assessable. It also shows Sidewalk 50%, Street Overlay 0%, Storm Sewer 0%, Watermain reconstruction 0% and Sanitary Sewer Main 0% assessable.
9.10.24_Council_Packet_and_Agenda · taken up again 2024-09-10
After discussing the options, the Council's consensus was to reduce the street assessment cost from the policy amount of 50% to 32%. The Engineers will use the 32% for the purpose of generating the feasibility report.
After reviewing assessment options, the Council agreed to reduce the street assessment from the policy 50% to 32%.
At the meetingCouncil reached consensus on 32%; no report delivered at this meeting.
The feasibility report was finalized using the council's work-session direction and accepted on August 13, 2019 by Resolution 2019-25, which set the improvement public hearing for September 10, 2019 at 7:00 pm on a 4-0-0 vote. The 32% street assessment rate, reduced from the 50% policy, remained the city's working rate in later projects, appearing again in the 2025 Street and Utility Improvements assessment terms.
8.13.19_City_Council_Mtg_Minutes · taken up again 2019-08-13
The proposed assessment amount will be in the final report that will be considered for adoption at the August Council meeting.
Adoption of the final Red Wing Avenue feasibility report and assessment amount was deferred to August.
The final feasibility report came to the August meeting as promised and was accepted August 13, 2019 by Resolution 2019-25, with the improvement hearing set for September 10, 2019. The motion by Nielsen, seconded by Mortensen, carried 4-0-0.
8.13.19_City_Council_Mtg_Minutes · taken up again 2019-08-13
The Engineers will use the 32% for the purpose of generating the feasibility report. The estimated project cost using the 32% will be presented at the public hearing.
The cost figure based on the newly chosen 32% assessment rate was not available at the work session.
The report containing the 32%-based estimate was accepted August 13, 2019 and a hearing set for September 10, 2019, but we hold no dollar figure for the Red Wing Avenue project cost or its preliminary assessment roll. The same 32% rate reappears in the 2025 Street and Utility Improvements packets with a 15-year term and 5.25% assessment interest.
8.13.19_City_Council_Mtg_Minutes · taken up again 2019-08-13
The estimated project cost using the 32% will be presented at the public hearing. The final cost can be adjusted later, but should be the same or less than this amount.
Council was told the 32%-based figure sets a ceiling that can be lowered.
The practice described was confirmed in a later project: on July 8, 2025 the assessment roll was updated with actual bid pricing and, except for three assessments that stayed the same, all assessments fell below the amounts in the official notices and the May 13 hearing. The Red Wing Avenue final assessment roll itself is not in our holdings.
7.8.25_Updated_Council_Packet_and_Agenda · taken up again 2025-07-08
The estimated repayment terms were shown for 15, 20 and 25 years. Bonds will be issued after the bids are in hand, which will probably be in the Spring of 2020.
Bond issuance timing depends on receiving construction bids.
At the meetingEilertson indicated the likely timing is Spring 2020.
The Red Wing Avenue project was built by Wencl Construction, with the remaining work restarting in April 2021, final paving in May 2021 and full completion required by June 26, 2021. The bid opening date and the actual bond sale schedule are not in our holdings; the Red Wing Ave Capital Project fund shows $0.00 in bond issuance costs in the 2024 budget table.
4.13.21_Council_Minutes · taken up again 2021-04-13
Administrator Vahlsing reviewed options for the repayment of a portion of the project financing from the sewer, water, and storm sewer enterprise funds. Proposed increases and the impact on rates were reviewed.
Vahlsing presented options for enterprise funds to pay a portion of the project debt service.
At the meetingOptions were reviewed; no decision recorded.
No 2019 rate study tied to the Red Wing Avenue debt is in our holdings. The council did later act on utility rates: on January 9, 2024 it raised the sanitary sewer rate from $6.61 to $7.40 per thousand gallons, the residential sewer base from $23.44 to $26.25 per month and the residential storm water maintenance fee from $4.03 to $9.00 per month, citing project costs and the utility rate study.
1-9-24_agenda · taken up again 2024-01-09
The second option was based on the 2016 1st Street project, which would assess 27% of the street costs and 100% of individual service lines and shut offs for sewer and water to houses and businesses.
Rhein offered the 2016 project as a precedent for a second assessment option.
The 2016 First Street project assessments are on record in the January 11, 2022 packet as a 2017-certified, 10-year, 4.4% assessment with individual amounts ranging from $3,193.12 to $3,963.10 per property. Those records do not state the percentage of street cost assessed, so the 27% figure is not confirmed; the 2016 project assessment resolution and roll summary would settle it.
1-11-22_Agenda_packet
Bonds will be issued after the bids are in hand, which will probably be in the Spring of 2020. Interest rates are very favorable right now and will hopefully carry over until Spring of 2020.
Eilertson characterized the bond market while presenting financing options.
We hold no municipal bond index data for 2019 or 2020 and no Northland rate assumption from the Red Wing Avenue financing plan. The comparable figures we do hold are the 4.4% rate carried on the 2016 First Street assessments and the 5.25% assessment interest rate used in 2025, described as the projected city bond rate plus 1%.
5-13-25_council_packet_updated
George Eilertson, Northland Securities, reviewed the bonding options for the Red Wing Avenue project based on the engineer's estimated project costs. The estimated repayment terms were shown for 15, 20 and 25 years.
Northland presented repayment terms for three lengths but no term was chosen.
At the meetingNo term was selected at the meeting.
No document in our holdings records the bond term chosen for the Red Wing Avenue project. The council resolution awarding the sale of the Red Wing Avenue improvement bonds, or the Northland financing plan adopted with it, would name the term.
would settle it: A Council resolution selecting the bond repayment term
Decisions
- Council consensus to set the Red Wing Avenue street assessment at 32% of street costs rather than the 50% policy amount
- Direction to the engineers to use 32% in generating the feasibility report and the estimate presented at the public hearing
- Motion by Rechtzigel, second by Mortensen, to adjourn the meeting at 7:23 p.m.
Who did what
| Person | At this meeting |
|---|---|
| Richard Nielsen Acting Mayor | Called the work session to order at 6:00 p.m. and presided over discussion of project financing |
| Dan Rechtzigel Council Member | Moved to adjourn the meeting at 7:23 p.m. |
| John Mortensen Council Member | Seconded the motion to adjourn |
| Doug Henke Council Member | Present and participated in the assessment and financing discussion |
| Mark Vahlsing Administrator | Reviewed options for repaying part of the project financing from sewer, water and storm sewer enterprise funds and the impact on rates |
| Joe Rhein Engineer | Reviewed updated costs and two assessment options for the Red Wing Avenue project |
| Derek Olinger Engineer | Attended the work session |
| George Eilertson Northland Securities | Reviewed bonding options and 15-, 20- and 25-year repayment terms based on the engineer's estimated project costs |
| Holli Gudknecht Administrative Assistant | Recorded and signed the minutes |
| Randy Eggert Utilities Superintendent | Attended the work session |
| Wayne Ehrich Public Works Superintendent | Attended the work session |
| Sue Dodds Finance Clerk | Attended the work session |
Organizations named: City of Kenyon, Northland Securities
Said at the meeting
After discussing the options, the Council's consensus was to reduce the street assessment cost from the policy amount of 50% to 32%.
Meeting minutes · minutes, verbatim
Bonds will be issued after the bids are in hand, which will probably be in the Spring of 2020.
Meeting minutes · minutes, verbatim
Interest rates are very favorable right now and will hopefully carry over until Spring of 2020.
Meeting minutes · minutes, verbatim
The final cost can be adjusted later, but should be the same or less than this amount.
Meeting minutes · minutes, verbatim
The minutes
Official minutes as adopted, from 7.23.19 Council Work Session Minutes; text extracted from the PDF.
Council Work Session was duly held in the City Council chambers at 6:00 p.m. on the 23rd day of July 2019.
- Present
- Acting Mayor Richard Nielsen, Council Members, Dan Rechtzigel, Doug Henke, and John Mortensen
- Also present
- Administrator Mark Vahlsing, Engineer Joe Rhein, Engineer Derek Olinger, Administrative Assistant Holli Gudknecht, Utilities Superintendent Randy Eggert, Public Works Superintendent Wayne Ehrich, Finance Clerk Sue Dodds, George Eilertson of Northland Securities
Acting Mayor Nielsen called the work session to order at 6:00 pm.
Review possible financing options for Red Wing Av. Project
Review Options for possible assessments for Red Wing Avenue Engineer Rhein reviewed the updated costs and options for assessments for the Red Wing Avenue project. The first assessment option was based on the current assessment policy, which would assess 50% of the street costs and 100% of individual service lines and shut offs for sewer and water to houses and businesses. The second option was based on the 2016 1st Street project, which would assess 27% of the street costs and 100% of individual service lines and shut offs for sewer and water to houses and businesses. The council also has the option of setting a different assessment percent for the street costs. After discussing the options, the Council's consensus was to reduce the street assessment cost from the policy amount of 50% to 32%. The Engineers will use the 32% for the purpose of generating the feasibility report. The estimated project cost using the 32% will be presented at the public hearing. The final cost can be adjusted later, but should be the same or less than this amount. The proposed assessment amount will be in the final report that will be considered for adoption at the August Council meeting.
Discuss options for Sewer, Water and Storm Sewer Enterprise Funds for Payment of a Portion of Project Debt Service for Red Wing Av. Project. Administrator Vahlsing reviewed options for the repayment of a portion of the project financing from the sewer, water, and storm sewer enterprise funds. Proposed increases and the impact on rates were reviewed.
Review overall project financing options. George Eilertson, Northland Securities, reviewed the bonding options for the Red Wing Avenue project based on the engineer's estimated project costs. The estimated repayment terms were shown for 15, 20 and 25 years. Bonds will be issued after the bids are in hand, which will probably be in the Spring of 2020. Interest rates are very favorable right now and will hopefully carry over until Spring of 2020. The term length will be determined later.
Motion by Rechtzigel second by Mortensen to adjourn the meeting at 7:23 p.m.