At the November 17 meeting of the Preston City Council a permit was approved for the Preston Historical Society (PHS) which will allow the consumption of alcohol (bring your own bottle) on the premises.
This consumption and display permit will “not” allow the sale of intoxicating liquor on the premises unless a caterer is invited in and sells liquor under its alcohol license.
City Administrator Ryan Throckmorton explained the city has not provided this kind of permit in the past and therefore it is not currently listed on the city’s fee schedule.
The state recommends liability insurance. PHS has been required to carry to carry some liability insurance. The League of Minnesota Cities suggests PHS be required by the city to increase its liability insurance to match Tort Limits of $1 million for occurrence and $2 million aggregate.
The state fee for the permit is $250 annually. The city council set the permit fee on its fee schedule for consumption and display at $100 to be collected in 2026. It was decided to forgive any fee for the remainder of 2025 and through March 31 when the 2025 permit will expire.
Other Business in Brief
- A liquor license was approved for Lucky Mud Liquor (former Trout City Brewing location) where liquor is to be on sale Monday through Saturday. A renewal will take effect on January 1, 2026; a fee for the remainder of 2025 was forgiven for the new business. The annual fee for on-sale license is $750. The business does not plan to open to the general public until January.
- The Labor Negotiating Committee and Employee Association have agreed to share the state premium of .88% with the employer paying 50% and the remaining 50% to be paid by employees through regular payroll deduction. The labor agreement addendum for Minnesota Paid Leave was approved.
- Three personnel policy amendments were approved effective January 1, 2026. The amendments included language for rest periods, earned sick and safe time, and paid family medical leave. Amendments were needed to conform with new state law requirements.
- Throckmorton led a discussion on stormwater utility rates. A storm water utility study was conducted in 2001. This was considered to be a 25-year plan. A stormwater fee was implemented in 2001. The fee for residential property was set at $5.67 and for commercial at $22.66. An ordinance to implement the stormwater utility was adopted in 2001 which laid out the area to be included; it also allowed for utility charges to be imposed when land is developed.
These stormwater fees can be collected by the city for construction, repair, enlargement, improvements, maintenance, and operations of stormwater systems according to state statute.
The current fund balance is $107,000. A 2026 dredging project to dredge ponds is estimated to cost $80,000.
Throckmorton explained the stormwater utility rate has not been updated regularly to include new developments, lot splits, and the addition of new structures. Adjustments need to be made to the fees and to include properties that should be paying stormwater utility fees that have not been included.
An ordinance allows for the collection of the fees. Throckmorton explained there is one fee across the board for residential properties; this is not true with commercial properties which may depend on quantity of water runoff.
Throckmorton said the council will have to consider rate adjustments in January. Currently, the city takes in about $60,000 each year in stormwater fees.
- The Truth in Taxation public hearing will be held during the December council meeting.
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