Jessica Green of Northland Securities updated the Wells City Council on the bond sale which will be used to fund the 2024 street projects. The General Obligation Bonds, Series 2024A, final total was $1,305,000.

The Wells City Council took their first look at the city’s proposed 2025 budget during their regular council meeting on Monday, Aug. 12.

“This is something I have been working on and what I am presenting is a balanced General Fund budget,” city administrator Tiffany Schrader told the council members. “A significant effort has been made across departments to bring the budget in line with actual expenditures.”

Schrader shared she had projected an original levy increase of 4.4 percent.

“However, after working with the auditors, they pointed out that the Deputy Registrar, the Flame Theatre and Wells Golf Course have been running deficit balances for a number of years,” Schrader explained. “It was recommended adding to the levy to eliminate those negative balances.”

After making those changes, Schrader noted the proposed levy would increase by $205,003.

“That would be a 12.12 percent increase,” Schrader commented. “The General Fund would increase by $252,480 or 31.45 percent. However, the capital levy is going down by $137,933. That represents a 39.93 percent decrease.”

According to Schrader, the debt levy would also see a decrease of $71,036 due to some scheduled bond payments and a 2015 GO Equipment certificate being paid off in 2024.

Members of the council discussed some of the proposed capital expenditures and where some changes could possibly be made but did not make any final decisions.

Discussions on the 2025 budget will continue at a budget work session which was scheduled to be held at 5 p.m. on Aug. 16, at City Hall.

The council will present and pass a proposed budget and levy in September.

The council also resumed working on the city’s cannabis ordinances.

A public hearing on an amendment to extend the city’s current moratorium on the operation of cannabis businesses within the city had two people offering public comment.

Luke Miller and Michelle Sass informed the council of their intent to get a license to cultivate cannabis within the city limits.

“We have applied to the State of Minnesota for a cultivation license,” Miller said. “We will also need to get a transporter license to take the product to Mankato to the retailer.”

The pair are currently working on purchasing a building in the city.

“We are not here looking for any action from the council,” Sass added. “We are just trying to be upfront about what we are doing and are trying to make sure people are aware of our plans.”

The city’s assistant attorney, Libby Kantner, reminded the council that if it became necessary to amend the ordinance before January, the council would be able to do so.

After thanking Miller and Sass for their input, the council voted to extend the current moratorium on operating a cannabis business inside of city limits to January of 2025.

The council then held another public hearing on an ordinance establishing registration requirements for the sale of intoxicating hemp products and amending the city’s zoning code to establish distance requirements from certain businesses and prohibit certain home occupations.

The amended ordinance will require cannabis businesses to be located at least 500 feet from the property line of a property containing a school, excluding a home school.

There was no public comment concerning this ordinance and it was passed by the council.

“We will talk more about the licensing and zoning issues at the September or October meetings,” Kantner added. “The State of Minnesota is very slowly releasing more guidelines.”

Jessica Green of Northland Securities was at the meeting to present the council with information on the bond sale to fund the 2024 street projects.

“The General Obligation Bonds, Series 2024A, final total was $1,305,000,” Green commented. “The city received an A-plus rating from Standard and Poor’s. The true interest on the 20-year bond is 4.02 percent which was a little lower than we were originally projecting.”

City engineer Ben Rosol updated the council on the construction projects and then presented a pay estimate, in the amount of $207,952, to Holtmeier Construction for the council’s approval, which the council did.

The matter of a repair for a Wells Fire Department truck also came up for discussion at the meeting.

“On June 27, I was informed that aerial ladder truck 538 was taken to Emergency Apparatus Maintenance for minor repairs,” Schrader reported. “I was later informed that while those repairs were being made, the aerial emergency power unit (bucket ladder) became inoperative, and the electrical cables need replacing. On July 23, I received an estimate from Emergency Apparatus Maintenance for $34,627. This is the cost for the replacement of the electric cables.”

Schrader explained there is currently an outstanding payment of $11,950 that is owed for the initial repairs that the truck was taken in for.

“An additional $12,000 in parts have already been ordered and delivered to Emergency Apparatus for the electrical cable replacement,” Schrader continued. “Because those parts are ordered specifically for this truck, the city of Wells is responsible for the payment of them.”

Schrader shared the current bill for the city at Emergency Apparatus is $23,950.

“Assuming their estimate is fairly accurate would mean that to complete the electrical cable repairs would cost an additional $22,627,” she noted. “A grand total of $46,577 would be owed if the council decides to move forward with the needed repairs.”

Schrader said as soon as she found out about the truck she should have told the Fire Department to bring it home.

“That’s on me. The department should have known we need to get bids for anything needing major repairs,” Schrader commented. “But, I should have said something.”

The council approved paying for the repairs but agreed with Schrader that the Fire Department needs to go about their business differently and make sure to get quotes which are approved by the council before proceeding with spending money for larger repairs.

In other business:

• The council approved a bid, in the amount of $966,750, from Mensing Construction of Blue Earth for the Broadway (County State Aid Highway 60) Improvement Project. Mensing Construction had the lowest bid of six companies and the bid was $59,664 below the engineer’s estimate.

• A resolution to accept a $1,000 gift from the Clothes Closet to the Flame Theatre and a $250 gift from the Wells Chamber of Commerce to the Wells Fire Department was approved.

• Resolution 2024-34 was passed which will give the city administrator the authority to work with owners of nuisance properties to sign abatement agreements. The abatement agreements will give the property owners specific steps that need to be taken for their property to no longer be deemed a nuisance and a timeline for when the steps need to be completed.

• The council approved street closures for July 26, 2025, for Brakebush Brothers to host a 100-year-in-business celebration. Brakebush will be using the area around the Wells Skatepark to host the event.

• The council was informed that Pam Krill is the city’s new CEDA (Community and Economic Development Associates) staff member.