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BE may change assessment hearing date

Council also gets update on Riverside Heights project funding

By Fiona Green - Staff Writer | Dec 24, 2023

With 2024 fast approaching, the Blue Earth City Council reviewed several upcoming projects at its final meeting of the year, on Monday, Dec. 18.

Per city engineer Wes Brown’s recommendation, the council discussed the implementation process for street improvement projects.

In previous years, Blue Earth has held the required assessment hearing for each project after construction was completed. However, Brown suggested the city consider holding its assessment hearings prior to the start of construction, instead, as the League of Minnesota Cities recommends.

“Doing so would allow for better planning and future projection of the expenses and revenues associated with the project before proceeding with construction,” Brown explained.

Blue Earth mayor Rick Scholtes also observed, “If we move this process up, it would hit the tax roll a year earlier and allow us to start collecting the money sooner to offset our budget.”

The council then discussed whether it is feasible to move the assessment hearing for the 2024 street improvement project to an earlier date.

At the project’s public improvement hearing on Nov. 6, the public was informed that the final assessment hearing was scheduled for the summer of 2025, with the assessment roll being certified the following December and assessments against benefiting property owners levied in 2026.

“There is a concern about doing it earlier, because we have stated at public meetings that it would be done when the project is done,” city attorney David Frundt advised. “It would be helpful to schedule another public hearing on the matter, and have a letter go out with that.”

The council directed Frundt to do more research on the legality of re-scheduling the assessment hearing, and report his findings to the council in January.

City administrator Mary Kennedy added, “Projects for the future should be considered with this process. We’ve got one started and may not be able to do that process with this one, but in the future this is probably the best and most financially responsible process.”

Bolton & Menk also updated the council about other ongoing projects.

Engineer Ben Rosol, who will be assuming Brown’s duties as city engineer starting in 2024, informed the council that contracts have been signed for the Highland Drive Lift Station Project and a pre-construction meeting is expected to be held in January.

“If the weather cooperates, we can start construction sometime in February,” Rosol said.

Brown also informed the council that word has been received about the Point Source Implementation Grant (PSIG) funding requested for the Riverside Heights Annexation Project.

The project itself was awarded the full $3.6 million in funding that Bolton & Menk requested, although it will not be available in 2024.

Meanwhile, a project to rehabilitate the Blue Earth Water Treatment Plant was awarded $4.9 million in funds, which is lower than the amount requested by Blue Earth Light & Water.

“We’re thinking (The Public Facilities Authority) might be offering more funding through a different grant program,” Brown explained, adding that Bolton & Menk intends to inquire further into the matter.

In other project-related business, the Blue Earth City Council: 

• Reviewed and approved a plan set forth by Kennedy to fund the reconstruction of the tennis courts at Putnam Park.

She explained that the project costs a total of $1,285,300, and two pay estimates with a combined total of $396,444 have already been paid.

To fund the remaining $888,856, Kennedy suggested borrowing $250,000 from the Blue Earth Economic Development Authority (EDA)’s Revolving Loan Fund.

She also suggested the city lend itself $200,000 from the Fitness Center Fund and $225,000 from the Liquor Fund, transfer an additional $100,000 from the Liquor Fund and allocate $250,000 from Local Option Sales Taxes to the project.

The remaining $31,420 in project costs could be funded through reserves, a 2025 levy increase, potential grant writing or fundraising.

• Approved the publication of a Request for Qualifications (RFQ) for architectural services. Services are needed for plans to renovate the former Wells Fargo building, which the city has purchased to convert into the new City Hall.

The RFQ is required as part of an application for a USDA Community Facilities Loan which Kennedy is considering as a source of funding for the project.

• Approved an Airport Engineering and Planning Services Proposal from Bolton & Menk to provide engineering services to the Blue Earth Municipal Airport.

• Approved the 2024 Professional Agreement for General Engineering Services with Bolton & Menk. The agreement presents no changes from last year’s agreement, although Rosol will be assuming Brown’s duties in 2024.