At the April 2 meeting, the Fountain City Council received questions regarding February’s council discussion of potential development. The area in question is 2.69 acres west of Westside Lane, which is currently open green space and park.
Kery Erickson, who resides at 118 Westside Lane, didn’t speak in direct opposition to developing the area. Instead, she made it known to the council that she had feasibility concerns. In February, City Clerk Mary Tjepkes noted that there were no longer kids playing at the park, and the city could give it to a developer if there weren’t stipulations on record that it remain green space in perpetuity.
Erickson, who lives directly adjacent to the park, noted that children use it regularly. “I do feel the park is a valuable asset there. It’s something I’d like to see the city keep,” she said.
Erickson’s major concerns about the plan relate to sinkholes in the area where the park is and a large influx of water drainage there. Aerial photos of the area from the 1990s show the two large sinkholes.
“To my knowledge, all of the water that drains off of Main Street runs down Main Street, through a drain under the highway, under the Westside Lane addition, and out into the park. So, I just have some concerns about the feasibility of developing homes in that chunk of property when it’s currently used as a stormwater drainage and has two large sinkholes in it,” she added.
Thirteen residences, including one duplex townhome, currently exist in the development. In February, Tjepkes noted that there is a possibility of putting four new homes or three townhomes in the area. Access to the park is a narrow strip of land south of Erickson’s property. Councilor Tammy Danielson there is no place for people to park if they’d like to go to the park. Erickson countered that there is a city street with public parking.
“Right now, we’re just investigating all the possibilities,” responded Reisner. “We do have a developer.” According to him, the city would purchase some farmland from Jason Schwarz that sits north of the park and development would likely happen in the northern part of the area. “That’s something we have to look into. We’re looking at all we can do to get a little more housing in here … a little more tax base. We don’t want to destroy something if we don’t have to.”
Reisner stated there would be a public meeting about the issue before anything could happen, but Tjepkes replied that no such meeting was required. Reisner and Tjepkes went through city records regarding the park and, finding nothing, went to the county to see if records existed, but came up empty-handed.
“There is nothing recorded that it has to remain a green space,” said Tjepkes. “I do have a developer that is very interested. It would not cost the city anything to have that developed except for platting. That runs about $15,000.”
Councilor Jordan Kerns asked for more clarification about why the city would want to give up green space other than for building the tax base, why that area particularly, and if there were alternatives.
“The city has nowhere else to go. We have nothing,” countered Thjepkes. “Without more tax base, we’re going to have to continuously raise taxes for the residents.”
“We’re locked by farmland. Nobody is going to give up farmland,” added Reisner. “We did have a chance for 13 acres. We lost out on that one.”
“We’re going to invest $15,000. That’s a five-year return on our investment by the time we get our tax base back. Is it worth it?” asked Kerns.
The next step is for the city to consult with attorney Frederick Suhler about the legalities involved.
In other news, Andrew Forliti, CPA for Smith Schafer, was on hand to present the 2024 audit. The city took in $229,918 in tax collections last year and property taxes, excluding the sewer tax levy, accounted for 28% of governmental revenues. $92,011 of Local Government Aid accounted for another 16%.
Expenditures were up across the board in 2024. The largest annual increase was in public safety, which included policing, fire, and ambulance contracts. $106,094 was spent in capital outlay for the final fire truck payment. Public Works expenditures were also up significantly.
The General fund was over budget by $28,273 for the year. The unassigned fund balance reserves, as a percentage of general fund expenditures, sit at 67%, dropping by 35% for the year.
“Still, the city is sitting at a pretty healthy spot,” said Forliti. “The state auditor recommendation is anywhere from 35 to 50% of a fund balance. It’s still healthy overall.”
A Capital Improvement fund balance of $217,651 is available for future capital project needs. There is only one outstanding bond which was issued in 2009. The Minnesota Public Facilities Authority clean water revolving loan has a balance of $248,364.
Utility funds, including sewer and water, did generate sufficient cash flow to service debt and improvements. However, the sewer fund was a break-even. The city increased rates in 2024.
“You really want to make sure you’re covering your operating expenses,” cautioned Forliti.
Lastly, resident Gary Hahn, 329 Cedar Street, presented the council with a petition to forgo the placement of speed bumps on Cedar Street. The issue will be discussed at the next meeting.
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