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Zumbrota, MN
Bridging the Past and the Future

August 4, 2005 Council Minutes


          REGULAR MEETING     August 4, 2005   6:00 P.M.      TOWN HALL


Pursuant to due call and notice thereof, Mayor Rich Bauer called the Zumbrota City Council to order at 6:00 p.m.  PRESENT:  Mayor Bauer, Councilmembers Doug Borgschatz, Willard Eberhart, Betty Jo Grothe, Dave Benson.  Others present: City Administrator Neil Jensen, City Accountant Mary Rohe, Community Development Director Angie Bersaw, Public Works Director Rick Lohmann, City Attorney Matt Rockne, Financial Advisor David Drown, Reporter Sandy Hadler, Paul Qualy, Miss Spratte, EDA Members Dale Hinderaker, Al Falk, Chuck Strum, Doug Fingerson, Trudy Miller, Jim Wedge.


The meeting opened with the Pledge of Allegiance.




               Motion Eberhart, second Grothe, to adopt the agenda.  Carried 5-0-0.




            Motion Grothe, second Benson, to approve the regular meeting minutes of 7/07/05.  Carried 5‑0‑0.




Motion Benson, second Eberhart to approve the accounts payable of $560,342.83.  Carried 5‑0‑0.



Paul Qualy made the following comments: Requested the capacity and condition of the water and sewer systems.




7-A. Police Department Discussion:


Mayor Bauer reported that the negotiating committee which consists of Mayor Bauer, Councilmember Borgschatz and City Administrator Neil Jensen met with the Teamsters Business Agent Mike Rasmussen and reviewed the proposed bargaining agreement prepared by the union.  The Mayor stated there was a lot of good discussion and that the committee will review the agreement and respond back at a future date.


Councilmember Borgschatz stated he reviewed the letter prepared by Don Davis, the consultant hired to train the police officers. In the letter, Mr. Davis stated the police officers felt that the community members appear to place a lot of reliance on innuendo or rumors and there is little effort to seek clarification regarding police actions.  Councilmember Borgschatz took offence to the statement, saying all the information he has received was from person to person and no third or fourth party conversations.




Public Hearing:


Tax Increment District 1-16 (6:15)


The public hearing for Tax Increment District 1-16 was called to order by Mayor Bauer.  Financial Advisor David Drown introduced the TIF District 1-16 Plan to the public and explained the area involved.  TIF 1-16 was formed to recoup funds expensed by the EDA with the purchase of the Grover Building and Page Welding Building.  The area encompasses the Grover Building, Page Building, Zumbro Video Store and Scharf Plumbing, along with several parking lots.  The Mayor opened the floor for discussion and public comments.  Paul Qualy questioned if the TIF Plan was out for public display and asked for prudence in these decisions.  Councilmember Eberhart questioned the reason that substandard buildings were put into the District and that not everyone wants a new building.  Eberhart also asked the dollar amount that will be recouped through the TIF and tax abatement of the new Grover Building.  David Drown replied $550,000.00 for land acquisitions with $200,000.00 of that from tax abatements.  Councilmember Eberhart stated that this is not in the best interest of the city and questioned how the city is expected to recoup the money they are losing out of the General Fund.  Eberhart stated he will vote in favor of this TIF, but, in the future, we should look at whether TIF Districts are the right thing to do. Councilmember Benson stated that he feels that TIF Districts should not be used for housing and should be focused on creating jobs and the commercial end of development. Mayor Bauer stated the only option that was presented was for Landmark Senior Housing.  Bauer also stated that the senior complex will be a perfect fit for the area.  The complex will create jobs with 40 new units being built.  Mayor Bauer also stated that the short term costs of TIF are worth the long term gains in taxable value.

Mayor Bauer closed the Public Hearing.




8-B.    Resolution 2005-19 Approve Tax Increment District 1-16 and adoption of the Tax Increment Financing Plan:


After closing of the public hearing, Mayor Bauer requested a motion to approve TIF 1-16 and the Tax Increment Financing Plan.


            Motion Grothe, second Borgschatz to approve Resolution # 2005-19 Approving the     Establishment of Tax Increment Financing District No.1-16 and adoption of the Tax   Increment Financing Plan.  Carried 4-0-1 (Benson)


Public Hearing:


5-Year  Reconstruction Plan: (6:30)


Mayor Bauer opened the public hearing for the 5-Year Reconstruction Plan at 7:07 P.M.  Financial Advisor David Drown gave a brief description of the plan and the priority projects it involves.  Mr. Drown explained the financing of the projects is to be with increased water and sewer rates, debt service bonding and a slight increase in the utility fee.  David Drown stated that with this plan in place, it allows the city to approve bonding of projects without going into the special assessment process. The city can bond up to 2% of the market value of the city.  Mr. Drown stated that the plan has to be approved by unanimous vote of the council.  There is a 30 day voter petition period in which the public can appeal the plan to the council by 5% of the voters.  This would then require a referendum vote of the citizens.  The mayor opened the hearing for public comment.  Paul Qualy asked if the priority projects were subject to economies of scale.  He also asked if there would be a separate audit and accounting for the projects.  He stated that the financial plan would impact everyone and questioned if there was money available to fund the projects.  With no other discussion, the mayor closed the public hearing. 




8-A.  Resolution 2005-18 Approve the 5-Year Reconstruction Plan:


After closing the public hearing, the Mayor requested a motion to approve Resolution 2005-18.


            Motion Benson, second Grothe to approve Resolution 2005-18 Approving the 5-Year             Reconstruction Plan.              Carried 5-0-0


8-C.  Approve the advertising for City Accountant:


City Accountant Mary Rohe is retiring and in order to have a replacement for her position by October 1, 2005, the city needs to start advertising for the position. 


            Motion Benson, second Borgschatz to approve advertising for a new City Accountant.              Carried 5-0-0



8-D.  Water and Sewer Request ( Heise ):


There was a request for sewer and water outside the city limits by John and Phyllis Heise at 17675 435th St.. The council felt that the request should be denied but also felt if the Heises would be interested in annexation, they could receive sewer and water service.  They instructed City Administrator Neil Jensen to contact the Heises and see if they would be interested in annexation.


8-E.  Booster Station Controls Quote:  Tabled


Unfinished Business:


7-B.  Rodgers Softball Park:


Public Works Director Rick Lohmann shared with the council the progress on the softball fields.  He stated the Park Board has changed the layout of the fields to prevent encroachment on the flood buyout properties.  The survey crew is near completion of the survey and will put together the quantities for construction.  Mayor Bauer asked if a turn around could be installed in the flood buyout area.  Public Works Director Rick Lohmann will check into this option.


7-C.  Preliminary Budget 2006:


City Administrator Neil Jensen presented the draft of the 2006 Preliminary Budget.  He inserted the requests that were made at the last meeting.  The budget, as presented, was increased in the park and street and decreased in the police budgets.  The decrease in the police budget represents the reduction of one officer when the COPS grant money expires in early 2006. Councilmember Eberhart made the comment that the council is doubling the park budget and cutting someone’s job and stated that is not right. It also becomes a safety issue, stated Councilmember Eberhart.  Councilmember Borgschatz suggested Councilmember Eberhart review the police schedule and see how often the police department has double or triple coverage.  Borgschatz stated that coverage is too extensive.  City Administrator Neil Jensen requested a decision be made on the budget at the next meeting, so a final 2006 Preliminary Budget could be introduced.






-City Accountant Mary Rohe-

City Accountant Mary Rohe stated that “National Night Out” was a great success. Also, cash sheets for the month are in the councilmembers’ mailboxes.


-Mayor Bauer-

Mayor Bauer shared a letter received from the Goodhue County Fair Board, requesting a reduction in speed limit on County Road 6 by the Fair Grounds during the fair and suppling a police car during the busy times.  The council suggested talking to Goodhue County, as this is their jurisdiction. 


-Councilmember Benson reported that a traffic volume check will be conducted by MNDOT to see if a traffic light is warrented on County  #10 or #68. 


-Councilmember Eberhart reported there are new election requirements and that there is a meeting on August 18th. 



Mayor Bauer adjourned the meeting at 8:07 p.m.


                                                                                    _______________________________                                                                                              Neil Jensen City Administrator


City of Zumbrota; 175 West Avenue; Zumbrota, MN 55992