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Wells sets the preliminary levy hike at 11.57%

Also looks at Highways 109 and 22 projects in 2026-27

By Kevin Mertens - Staff Writer | Sep 29, 2024

Trunk Highway 22 and Trunk Highway 109 are both set for resurfacing beginning in May of 2026. The city of Wells is planning on updating the infrastructure under the highways during the construction.

The Wells City Council adopted a preliminary tax levy for 2025 at their meeting on Sept. 23, which calls for a proposed increase of $195,563, or 11.57 percent.

“Please note,” city administrator Tiffany Schrader reminded the council. “Once the preliminary levy is certified, the levy cannot be raised. The city will continue to work on the budget and tax levy until the final numbers are adopted in December at the Truth in Taxation meeting.”

Currently, the proposed budget for 2025 has the General Fund increasing by $252,480 but the Capital Levy decreasing by $147,373.

“The total Debt Levy is also decreasing by $71,036,” Schrader added.

Also on the agenda was a presentation of the Trunk Highway 22/Trunk Highway 109 Utility Improvements Feasibility Report by city engineer Ben Rosol.

“The Minnesota Department of Transportation (MnDOT) is planning to fully reconstruct TH 22 from the south end of town to County Road 29 and TH 109 from the west end of town to TH 22,” Rosol said. “The city of Wells and Wells Public Utilities is looking to replace and add to their underground infrastructure while these highways are being reconstructed.”

Rosol outlined some of the problems with the current infrastructure.

“Most of the storm sewer along TH 22 is sporadic and consists of small diameter piping of 15 inches or less,” he explained. “TH 109 currently has minimal storm mains. The city has minimal information on the storm sewer along both highways. This storm sewer is original to the highways and is undersized and becoming a maintenance issue.”

The feasibility report outlined the conditions of the sanitary and watermain lines also along with proposed improvements.

“The estimated cost of the whole project, which is scheduled for 2026 and 2027, is just under $7 million,” Rosol commented. “The city has received a storm water grant which will cover $1.4 million and has also qualified for two low-interest loans totaling $4,758,251.”

“Those loans are through the Clean Water Revolving Fund and the Drinking Water Revolving Fund,” Rosol said. “That leaves another $832,265 for the city to finance.”

The council voted to accept the feasibility report. Next, a public hearing will be held to authorize plans and specifications.

“We will advertise for bids in the fall of 2025 and construction is scheduled to begin in May of 2026,” Rosol said. “The assessment hearing will be in November of 2027.”

During her report to the council, Schroeder clarified that when discussing a flag disposal box at the previous meeting, she should have said the box was being donated by the Maple Valley Classics Car Club and not the Wells Lions Club.

“They have decided to put the flag disposal box in the lobby of Peoples State Bank,” Schroeder shared.

Schroeder also said the city had received a letter from the IRS claiming that the city did not file their 2022 W2s correctly as required by Internal Revenue Code.

“According to the letter, the IRS is claiming that our W2s were not received until April 21, 2023, when they were supposed to have been submitted no later than Jan. 31, 2023,” Schroeder explained. “Because of this penalty they are imposing a fine of $12,540. I have been working with our attorneys to resolve this situation and on Wednesday, Sept. 18, a letter was sent to the IRS denying the penalty along with the supporting documents that show the W2s were submitted on time. We are hoping the documents we sent will resolve the situation.”

Schroeder noted she is continuing to work with a FEMA (Federal Emergency Management Agency) representative on working to recover some of the costs the city incurred due to the storms during the months of June and July.

During the public comment portion of the meeting, the council heard a request for lines to be painted on the outdoor basketball courts at Half Moon Park.

The council also:

• Adopted a resolution accepting a $250 gift from the Kiester Firemens Relief Association to be used for Fire Prevention Week.

• Approved the appointment of Mark Gregor to fill the vacancy on the Wells Airport Advisory Board.

• Voted to accept the resignation of Christine O’Connor from the Flame Theatre.

• Granted permission to the Knights of Columbus to hold a parade on Oct. 4. The parade will begin at approximately 12 p.m. at St. Casimir’s Catholic Church. It will then go down Broadway and will end at Half Moon Park.

• Agreed to a request from the Wells Area Chamber of Commerce to use the municipal parking lot by the VFW on Thursday, Oct. 31, for the Trunk or Treat event.

• Approved closing two blocks of South Broadway between Franklin Street and Second Street for the annual Wells Does It Bright festival which will be held from 4-7 p.m. on Friday, Nov. 22.