At the September 28 meeting of the city council, Interim City Administrator Michelle Marotzke presented three options to council members for the 2027 levy.
A proposed 5% increase in the 2027 levy was discussed at the last meeting of the city council. Council Steve Hall had his reservations, suggesting the city needs to build up its reserves to take care of needs in the community that residents are saying they have, like road repair and sidewalks.
The three options discussed included the possibility for a 5% 8%, or 10% increase. Each 1% increase of the levy equals about $13,453. With the 8% increase there will be an increase in the Street Fund and with the 10% increase there could be a small decrease in the General Fund and a significantly larger increase in the Street Fund. She explained that the most recent Pavement Management Plan was drafted in 2012 and it could be updated in 2027. The most recent sealcoating project was in 2023. Brett Grabau had recommended a sealcoating project every year, as sealcoating is recommended to be done on an 8-10 year cycle.
Council Charles Sparks noted some streets are too far gone for a successful sealcoating.
Marotzke recommended a budget workshop in November for the city council and Preston Public Utilities to help coordinate the two budgets. When a street is reconstructed, improvements to the utilities under the street also need to be paid for. Marotzke said the city has money for sealcoating and the production of a Pavement Management Plan with the 5% increase.
Mayor Kurt Reicks agreed they should prepare a Pavement Management Plan and then “we should follow it.” He questioned whether it was a good idea to have a larger levy increase with the upcoming pool referendum.
Hall argued that in the past the city has shot for a 5% increase and maybe “that is why we are in the position we are in.” He said he can’t accept a 5% increase. Councilman Jon Wood said he could support the 8% increase, adding, “We can always go down and settle lower in December.”
Sparks said he could “live with that, taking a good look at the budget/levy in December.”
Andy Bunge was allowed to comment. He suggested, “You can’t kick the ball down the road too much. What will our legacy be?” He had attended a meeting of the Pool Committee. He said the residents making decisions at the time the pool was built were forward looking.
A preliminary 2027 levy increase of 8% was approved unanimously. The total 2027 preliminary levy is $1,452,891, which is an increase of $107,628 over 2026. The Truth-in-Taxation Hearing will be held on December 7 at 6 p.m.
Other Business in Brief
• Marotzke described the water leak at the rear entrance of city hall during heavier rain events. Extra caulking has not fixed the leak. It appears to be coming in through the wall. She was directed to have it looked at by a professional to determine the source of the leak.
• A renewal of the contract with the Minnesota Department of Public Safety for five years to lease office space on Friday of each week from 9 a.m. to 4 p.m. for Driver’s Exam Testing was approved. The city will receive $1,140 per year for rental of the space.
• Approval was granted for Marotzke to negotiate a 30-year lease of city property to allow the Minnesota Department of Natural Resources to adjust the trail at the Hwy 52 bridge. The existing trail needs to be rerouted due to erosion. Reicks asked that part of the negotiation include adequate access for emergency vehicles on the trail. Trails are supposed to be accessible for emergency vehicles.
• A closed meeting was held to discuss the possible purchase of property for the municipal pool site and matters related to the existing tennis court property. The property being considered to purchase is estimated to be about five acres; it would wrap around to the city maintained tennis courts on the east side. A purchase option agreement was approved.
• A closed meeting was held to discuss the possible sale, transfer, or conveyance of city property and matters related to the city’s negotiating position. Preston Protein wants to install a scale at the dry plant and also purchase additional parcels for business use. Three city owned parcels would become taxable parcels and the city would not be responsible for their maintenance. Approval was granted to continue discussions for sale/transfer of the parcels.
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