Spurred by the spread of emerald ash borer (EAB), an invasive species of beetle which has been plaguing ash trees in Minnesota for the past decade or so, the Blue Earth City Council discussed strategies for replacing and diversifying the city’s tree population at a meeting held on Monday, Feb. 6.

“As everybody knows, we’ve got emerald ash borer – it’s becoming more and more of a problem,” began city engineer Wes Brown. “There is funding available through the DNR (Department of Natural Resources) to help with this.” 

The DNR’s EAB Grants Program assists Minnesota communities in managing ash trees for EAB on public land. The grant money can be used to build public tree inventories, develop management plans with an EAB component, remove trees and stumps, replace trees or plant trees. Applicants must match 25 percent of the funds they request.

“If (the grant application) is successful, the funds would be used to have an arborist go out and do inventory,” Brown explained. The project would develop a map of Blue Earth’s tree population and specifically tag ash trees. It would also involve creating an EAB management plan.

Brown said, “It’s about $20,000 to do the collection process and put together that management plan. There would need to be a 25 percent match from the city.” 

He requested the council’s approval to move forward with the grant application process, which he received unanimously.

He also suggested implementing a reimbursement program for residents to replace trees following street improvement projects.

Brown explained that Algona, Iowa, has implemented a similar program.

“Residents can come in and get reimbursed for 50 percent of the cost of a tree. with a limit of two trees per year,” he said. “We could come up with a list of approved trees and let residents pick the trees out and do the reimbursement process.”

Council member Jacque Drew inquired whether the program could also be implemented for residents whose trees were removed during the 2022 street improvement project. Brown said that may be possible.

City administrator Mary Kennedy agreed to develop a proposal for the reimbursement program for the council to review at its next meeting on Feb. 21.

Later, the council resumed discussion about a proposed project which has been benched for several months: a new tennis court facility at Blue Earth Area (BEA) High School.

Last spring, the council and the BEA School District agreed to partner to finance the new courts. While the city would initially finance the project in full, the school would reimburse the city for a sizeable percentage of the costs at a later date.

The council and school board have discussed splitting the project’s funding 60/40, with the school paying the city back for 60 percent of the project’s costs.

On Feb. 6, the council reviewed its options for financing the tennis courts. The city has reached its annual limit on general obligation abatement bonding, so it needs to explore other methods of funding for this project.

Doug Green, a municipal advisor at Baker Tilly, proposed securing lease revenue bonds. Through this process, the Blue Earth Economic Development Authority (EDA) would lease the site for the tennis courts from the school district. Then, the EDA would sublease the site to the city. The city would make lease payments to the EDA equal to its annual debt service, and the EDA would fund the debt service payments.

Meanwhile, the school district would pay the city its portion of the annual debt service. Once all of the payments had been made, the ground lease and sublease would both expire.

“The process appears complex, but it is not uncommon for public facilities to be financed (like this),” Green said. “We’ve been doing this for decades.”

Mayor Rick Scholtes explained that through this process, the city acts as a financer for the school district. He noted that the city does not need to put out a referendum to borrow money, but the school district does.

“At the end of the day, whatever the school needs from us, we need to be the mechanism to finance the project,” Scholtes said. “If we want a different percent (split), we need to work that out with the school.” 

Some council members said they would prefer for the school district to pay back a higher percentage of the project’s costs.

Scholtes suggested council members Ann Hanna, John Huisman and Dan Ristau – all members of the School/City Facility Joint Powers Committee – discuss the matter with the school district’s representatives and see if they would be willing to alter the proposed split of the costs.

In other business, the Blue Earth City Council: 

• Heard an update from Brown regarding the 2023 street improvement project. Brown said the street committee recommends eliminating two blocks of sidewalk along Moore Street, between Second Street and Fourth Street, due to issues with the blocks’ grading.

• Reviewed a draft of a contract for kenneling services with the Faribault County Humane Society (FCHS). The contract reserves three enclosure cages for the city’s use and proposes a fee schedule for when the FCHS holds animals for the city. The initial five days would cost $30 per day, and the following 10 days would cost $20 per day.

• Scheduled a second reading for an ordinance conveying city-owned property at the West Industrial Park to Blue Earth Light and Water for $1.

• Discussed a complaint about recurrent city code violations at a Seventh Street property, and decided to proceed with criminal prosecution of the property owner.

• Approved the replacement of a fuel pump at the Blue Earth Municipal Airport.

• Approved Resolution 23-03 establishing the city’s intent to comply with reimbursement bond regulations when financing the 2023 Street Improvement Project and the purchase of a new street sweeper, ag tractor and flue tar kettle.

• Adjusted wages for part-time snow plow drivers from $23.94 per hour to $27 per hour, and established a $30 per hour wage for road grader operators.

• Approved a request to enroll office specialists Tammy Davis and Rayne Hanevik in a training course on customer service skills.

• Approved the Blue Earth Chamber of Commerce’s application for a Consumption and Display Permit for the upcoming annual Wine Walk.

• Approved an administration conference travel request for Kennedy and deputy city clerk Echo Roggenkamp.

• Approved a travel request from Blue Earth Fire Department member Ryan Vereide.