What happened
- Work session purpose was to review the enterprise (sanitary sewer, storm sewer, municipal liquor store) portion of the 2023 draft budget; no budget adopted.
- CEDA's Cora Boelman reported meeting with a prospective business interested in the business park — a boat transportation, storage and service company based in Bay City, WI.
- Boelman updated business park marketing materials and web listings and worked with MnDOT on placement of directional signs to the park.
- Downtown work included visiting business owners, promoting the Façade Improvement program, and building an inventory of vacant buildings for the city website.
- Only major purchase in the sanitary sewer budget was an inline grinder pump, approximately $70,000-$80,000 with installation.
- Proposed 2023 sanitary sewer budget included an 8% increase to user rates and base charges.
- No proposed increase to storm sewer user rates and base charges; no major changes to the storm sewer budget.
- Sanitary sewer 2023 expense budget included $240,000 in depreciation; actual expense without depreciation was $543,000.
- Storm sewer 2023 expense budget included $40,000 in depreciation; actual expense without depreciation was $107,000.
- Liquor store budget showed increases to beer, wine and liquor sales and revenue; Manager Matt Bartel asked Council about his non-exempt employee status.
- Administrator's memo noted a 3% COLA for full-time employees, a 5% health insurance increase, and that a 6.8% levy increase would be needed.
- Motion by Ryan, second by Bailey to adjourn at 7:05 p.m. carried 5-0-0.
What was asked 11 raised · 4 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.
Public Works Superintendent Ehrich reviewed the proposed 2023 storm sewer fund budget. There were no major changes to the storm sewer budget.
Review of the proposed 2023 storm sewer fund budget.
The claim is exactly right, and it stayed right. The storm sewer fund budget was $120,450.00 in 2022, $120,450.00 in 2023 and $120,450.00 in 2024, the same figure three years running under department 43251 in fund 605. Actual spending ran well below it, $54,341.62 in 2022 and $62,216.47 year to date in 2023, or 45 and 52 percent of budget.
9.12.23 Council Packet Agenda, fund 605 storm sewer
The following members were present: Mayor Doug Henke, Council Members: Dan Rechtzigel, Mary Bailey, Kim Helgeson, and Molly Ryan Absent: Also, present: City Administrator Mark Vahlsing, Finance Clerk Kathy Flikke, Public Works Superintendent Wayne Ehrich, Liquor Store Manager Matt Bartel, CEDA Economic Development Specialist Cora Boelman Mayor Henke called the work session to order at 6:00 pm. The purpose of this meeting is to review the Enterprise portion of the 2023 draft budget.
The work session was held solely to review the enterprise portion of the 2023 draft budget.
The 8 percent sanitary sewer increase survived into the adopted budget. The January 10 2023 packet records that the 2023 Sanitary Sewer Budget includes an 8 percent rate increase and that the increase was reviewed at the October 26 work session. The enterprise budget review then became an annual fixture, with the 2024 enterprise work session set for November 28 2023 at 5:00 p.m. The rate resolution itself is not in our record.
1.10.23 Council Packet Agenda; 12.12.23 Council Packet and Agenda · taken up again 2023-01-10
Administrator Vahlsing reviewed sanitary sewer rates. The 2023 budget shows a proposed 8% increase to user rates and base charges.
Review of sanitary sewer rates during the enterprise budget discussion.
The 8 percent proposal went into the 2023 budget and was overtaken within five months. A March 2023 rate presentation put the required sanitary increases at 27 percent on the base rate and 23 percent on the user rate, up from the 22 percent and 16 percent contemplated in January 2023, with the majority of the increase by 2026 and the remainder by 2032. The driver was new sewer bond annual debt service of $203,000 a year for 2023 through 2032, up from $169,000.
The council reviewed an 8 percent sanitary increase in October 2022, but by March 2023 the city was presenting base rate increases of 27 percent and user rate increases of 23 percent.
3.14.23 Updated Council Packet Agenda, Sewer Fund Utility Rates · taken up again 2023-03-14
Administrator Vahlsing reviewed storm sewer rates. The 2023 budget shows no proposed increase to user rates and base charges.
Review of storm sewer rates during the enterprise budget discussion.
The storm sewer freeze lasted one year and was followed by the largest utility increase in our record. For 2024 staff recommended raising the residential storm sewer maintenance fee from $4.03 to $9.00 a month, an increase of 123 percent, while sanitary went from $6.61 to $7.40 per thousand gallons and the residential sewer base rate from $23.44 to $26.25 a month, each about 12 percent. The increases were attributed to upcoming project costs and the utility rate study.
1-9-24 agenda, 2024 Sanitary and Storm Sewer Rates · taken up again 2024-01-09
Liquor Store Manager Matt Bartel reviewed the proposed 2023 budget for the municipal liquor store. The liquor Store budget showed increase to beer, wine and liquor sales and revenue.
Review of the proposed 2023 municipal liquor store budget.
No liquor store budget worksheet with prior-year actuals and 2023 projections appears in our record, only the manager's summary that beer, wine and liquor sales and revenue were up. The following year's presentation is more specific and more useful: for 2024 Bartel showed increases to on-sale revenue, asked that part-time wages rise and that the added revenue go to salary increases, and flagged the need to replace the fryer, the roof and eventually the flooring. The city bought two of those three in 2024, a Chandler Roofing roof at $40,640 and Hamernick's flooring at $7,480.86.
12.12.23 Council Packet and Agenda; KENYON_BIDS.md 2024 entries · taken up again 2023-12-12
The liquor Store budget showed increase to beer, wine and liquor sales and revenue. He also asked the Council about his status as a non-exempt employee.
Raised while reviewing the proposed 2023 municipal liquor store budget.
No answer to Matt Bartel's question appears in the record then or later. We hold no city personnel policy and no Fair Labor Standards Act exemption determination for the liquor store manager position. He continued presenting liquor store budgets through at least September 2025 with the question unresolved in the minutes. The city's personnel policy and a written position classification would settle it.
would settle it: The city's personnel policy and FLSA exemption determination for the liquor store manager position
The only major purchase proposed in the Sanitary sewer budget was an inline grinder pump. The approximated cost with installation is $70,000-$80,000.
The only major purchase proposed in the 2023 sanitary sewer fund budget.
No quote, bid or award for an inline grinder pump appears anywhere in the 43-row bid record, so the $70,000 to $80,000 estimate was never tested against a vendor price in our archive.
A purchase in that range requires council approval plus two quotes under Administrative Policy No. 34, adopted in August 2024, and no quotes for it are on file in any year.
KENYON_BIDS.md · would settle it: A vendor quote or bid for the inline grinder pump and installation
She stated that she and the City Administrator had met with a prospective business last week interested in the business park.
Boelman and the City Administrator met with the prospective business the prior week.
No decision, letter of intent or follow-up on the Bay City boat transportation and storage company appears in our record, and the business does not appear in the 167-company Kenyon directory. A CEDA prospect file or an EDA land sale would settle it.
data/companies.csv · would settle it: A decision or letter of intent from the prospective company
She has also been working to promote the Façade Improvement program by updating and distributing information. She is working on an inventory of vacant buildings. The listings will be added to the city web site.
Downtown development work reported in the 3rd quarter update.
No inventory of vacant downtown buildings and no such listings page appears in our record of the city website. The city site runs on GovOffice at cityofkenyon.gov and carries a website administration salary line of $7,260 budgeted for 2026 and $7,910 proposed for 2027. The completed inventory, or the live listings page, would settle it.
KENYON_IT_SPEND.md · would settle it: The completed inventory and the posted web listings
They have a location in Bay City, WI. She has also been working on updating business park marketing materials and web listings.
Ongoing economic development work reported for the 3rd quarter.
No updated business park marketing materials or live web listings appear in our record. What is documented is the price of the staff time: the CEDA agreement reimburses the authority's economic development marketing, business outreach and business retention and expansion work at a not-to-exceed $55,053 based on an average of sixteen hours a week. The materials themselves would settle it.
12.9.25 Council Agenda and Packet Updated, CEDA agreement · would settle it: The updated marketing materials and live web listings
For the downtown she stated that she has been visiting business owners. She has also been working to promote the Façade Improvement program by updating and distributing information.
Downtown business development activity reported in the quarterly update.
No distribution records and no application count for the Facade Improvement program appear in our record. Facade improvement plan applications were reported again in April 2023 as an ongoing CEDA activity with no numbers attached. The program's application log would settle it.
would settle it: Distribution records and program application count
Decisions
- Motion by Ryan, second by Bailey to adjourn the meeting at 7:05 p.m. — carried 5-0-0
Who did what
| Person | At this meeting |
|---|---|
| Doug Henke Mayor | Called the work session to order at 6:00 pm and presided. |
| Dan Rechtzigel Council Member | Present for the work session. |
| Mary Bailey Council Member | Seconded the motion to adjourn. |
| Kim Helgeson Council Member | Present for the work session. |
| Molly Ryan Council Member | Moved to adjourn the meeting at 7:05 p.m. |
| Mark Vahlsing City Administrator | Reviewed sanitary sewer and storm sewer rates; met with the prospective business park company; authored the council meeting memorandum. |
| Kathy Flikke Finance Clerk | Present for the work session. |
| Wayne Ehrich Public Works Superintendent | Reviewed the proposed 2023 sanitary sewer and storm sewer fund budgets, including the inline grinder pump purchase. |
| Matt Bartel Liquor Store Manager | Reviewed the proposed 2023 municipal liquor store budget and asked the Council about his status as a non-exempt employee. |
| Cora Boelman CEDA Community and Business Development Specialist | Gave the third-quarter economic development update on business park and downtown activities. |
| Holli Gudknecht Administration/Finance/Engineering (agenda item submissions) | Submitted the agenda item reports for the work session packet. |
Organizations named: CEDA (Community and Economic Development Associates), City of Kenyon, MnDOT, Kenyon Municipal Liquor Store
Figures
| Amount | What |
|---|---|
| $70,000-$80,000 | approximate cost with installation of an inline grinder pump proposed in the sanitary sewer budget |
| 8% | proposed 2023 increase to sanitary sewer user rates and base charges |
| $240,000 | depreciation included in the 2023 sanitary sewer expense budget |
| $543,000 | actual 2023 sanitary sewer expense without depreciation |
| $40,000 | depreciation included in the 2023 storm sewer expense budget |
| $107,000 | actual 2023 storm sewer expense without depreciation |
| 3% | COLA increase for full time employees reflected in the draft budget |
| 5% | annual health insurance increase shown in the budget |
| 6.8% | levy increase needed based on the proposed 2023 budget |
Said at the meeting
The purpose of this meeting is to review the Enterprise portion of the 2023 draft budget.
Minutes · packet, verbatim
She stated that she and the City Administrator had met with a prospective business last week interested in the business park.
Cora Boelman, CEDA Community and Business Development Specialist · minutes, verbatim
The only major purchase proposed in the Sanitary sewer budget was an inline grinder pump.
Minutes (Wayne Ehrich, Public Works Superintendent) · minutes, verbatim
The 2023 budget shows a proposed 8% increase to user rates and base charges.
Mark Vahlsing, City Administrator · minutes, verbatim
He also asked the Council about his status as a non-exempt employee.
Minutes (Matt Bartel, Liquor Store Manager) · minutes, verbatim
Based on the proposed 2023 budget a 6.8% levy increase would be needed.
Mark Vahlsing, City Administrator (council memo) · packet, verbatim
Agenda
Each item links to where it appears in the packet.
- I. Call to Order
- II. Agenda
- II.A Agenda
- III. Business to be discussed and Possible Action
- III.A Update on 3rd Quarter economic development activities. Cora Boelman –
- III.B Review Proposed 2023 Budget – Enterprise Funds
- IV. Adjourn
- II. Update on 3rd Quarter economic development activities. Cora
- III. Review Proposed 2023 Budget – Enterprise Funds
Full packet text (9k characters)
The minutes
Official minutes as adopted, from 11.16.22 City Council Packet and Agenda; text extracted from the PDF.
Council Work Session was duly held in the City Council chambers at 6:00 p.m. on the 26th day of October 2022.
- Present
- Mayor Doug Henke, Council Members: Dan Rechtzigel, Mary Bailey, Kim Helgeson, and Molly Ryan
- Absent
- Also present
- City Administrator Mark Vahlsing, Finance Clerk Kathy Flikke, Public Works Superintendent Wayne Ehrich, Liquor Store Manager Matt Bartel, CEDA Economic Development Specialist Cora Boelman
Mayor Henke called the work session to order at 6:00 pm. The purpose of this meeting is to review the Enterprise portion of the 2023 draft budget.
Update on 3rd Quarter Economic Development Activities. Cora Boelman – Community and Business
Development Specialist. CEDA Cora Boelman updated the Council on her current activities. She stated that she and the City Administrator had met with a prospective business last week interested in the business park. The company did boat transportation, storage, and service. They have a location in Bay City, WI. She has also been working on updating business park marketing materials and web listings.
For the downtown she stated that she has been visiting business owners. She has also been working to promote the Façade Improvement program by updating and distributing information. She is working on an inventory of vacant buildings. The listings will be added to the city web site. She has also talked to some persons interested in starting businesses in the downtown area.
Review Proposed 2023 Budget – Enterprise Funds
Public Works Superintendent Ehrich reviewed the proposed 2023 Sanitary sewer fund budget. The only major purchase proposed in the Sanitary sewer budget was an inline grinder pump. The approximated cost with installation is $70,000-$80,000.
Administrator Vahlsing reviewed sanitary sewer rates. The 2023 budget shows a proposed 8% increase to user rates and base charges.
Public Works Superintendent Ehrich reviewed the proposed 2023 storm sewer fund budget. There were no major changes to the storm sewer budget.
Administrator Vahlsing reviewed storm sewer rates. The 2023 budget shows no proposed increase to user rates and base charges.
Liquor Store Manager Matt Bartel reviewed the proposed 2023 budget for the municipal liquor store. The liquor Store budget showed increase to beer, wine and liquor sales and revenue. He also asked the Council about his status as a non-exempt employee.
Motion by Ryan, Second by Bailey to adjourn the meeting at 7:05 p.m. Motion Carried 5-0-0
Mark Vahlsing, City Administrator Douglas Henke, Mayor
AGENDA ITEM NO. VII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT