Mayor Scott Wallace called the City Council meeting to order at 6:00 p.m. September 8, 2025, with the Pledge of Allegiance. Council present: Mayor Scott Wallace, Zeb Baumann, Danny Todd, and Steve Westby. Staff present: Michelle Quinn, Curtis Chapel, Josh Hongerholt, Brett Hurley, and Ed Jacobs. A list of public members present is on file.
Minnesota Design Team Grant Proposal: Marilyn Frauenkron Bayer shared how the Minnesota Design Team had been to Houston in 1995 and again in 2006. She provided an overview of how funding would be a blend of in-kind support paired with a potential grant from SMIF. She explained how the process evolves and how it truly unites communities and brings residents together to define the local vision. She stated that the communities which host the Minnesota Bear Center, Loon Center and Hummingbird Center all had Minnesota Design Time visits prior to construction. Motion by Todd, seconded by Westby, to authorize the submission of the grant application and formally support the initiative which will hopefully result in another Minnesota Design Team visit. Motion carried unanimously.
City Hall Roof: The City Hall roof experienced significant leaking during a recent driving rain event. Staff solicited quotes from two qualified contractors for replacement of the roof on city hall. The city has been proactively planning/saving for future big purchases (furnace replacement at city hall, street sweeper) and included funding in the current budget. With the council’s approval, the savings intended for mentioned items could be redirected and would allow the city to pay cash for the roof replacement expense. It would of course setback our savings for the items mentioned. Motion by Todd, seconded by Westby, to accept the quote submitted by Winona Heating & Ventilation, Inc. in the amount of $32,740.00. Motion carried unanimously.
Bandshell Roof: The Bandshell roof was damaged during the 7/28/2025 strong wind event. The west side of the roof has sustained damage multiple times. Public Works noted the steel interlocking shingles on the Nature Center building have withstood the wind events which have resulted in the shingle damage on the west side of the bandshell and suggested the council consider a bandshell roof replacement utilizing a similar interlocking shingle which Affordable Siding & Roofing provided a quote for in the amount of $21,942. Following discussion, motion by Todd, seconded by Westby to accept the quote of Affordable Siding & Roofing in the amount of $21,942 for interlocking steel shingles. Motion carried unanimously.
2026 Water and Sewer Rates: In August, the council members were provided with water and sewer rate increase projections for consideration. Michael Bubany, the city’s financial consultant, has stated it is necessary to continuously monitor the health of the enterprise funds and make increases to ensure sustainability. Discussion was held. Motion by Westby, seconded by Todd to adopt a base and volumetric water increase of 4% and base and volumetric sewer increase of 5% effective with the billing cycle which includes January 2026 use. Motion carried unanimously.
Preliminary Budget & Levy: The preliminary levy reflects an increase of approximately 3%. This allows the city to meet needs and attain goals laid out by the finance committee. Motion by Baumann, seconded by Westby to adopt the preliminary budget, levy, and following resolution. Motion carried unanimously.
RESOLUTION 2025-11
ADOPTING PRELIMINARY 2026 BUDGET AND PRELIMINARY TAX LEVY,
COLLECTABLE IN 2026
Be It Resolved by the city council of the City of Houston, County of Houston, Minnesota, adopts the Preliminary 2025 Budget and that the following sums of money be levied for the current year, collectable in 2026, upon the taxable property in the City of Houston, for the following purposes:
General Fund 208,000
Library Fund 40,500
Ambulance Fund 10,000
Fire Fund 30,000
Park/Rec Fund 2,500
Nature Center Fund 51,000
Vehicle Fund 39,000
Infrastructure Fund 63,250
2016A Ellsworth Street Bond 34,000
2017A Street & Utility Improvement Bond 27,350
2020 MiEnergy Loan 31,500
2020B Lincoln Street Reconstruction Bond 37,100
2020C Community Center Renovation Bond 18,200
2025 Street & Utility (CSAH 13/Spruce Street) 25,000
Total Levy $617,400
The city administrator is hereby instructed to transmit a certified copy of this resolution to the county auditor of Houston County, Minnesota.
Gambling Permit: Motion by Westby, seconded by Baumann to approve a gambling permit with no waiting period for the Houston Volunteer Fireman’s Relief Association for an event to be hosted at the Houston Community Center on February 21, 2026 and one for DLC, Inc. for an event to be hosted at the Houston Fest Grounds/Community Center on January 24, 2026. Motion carried unanimously.
Sale of Excess Property (decommissioned street signs): Motion by Westby, seconded by Todd to set the price of decommissioned street signs at $20 per sign and to adopt the following resolution offering the signs on a first come, first served basis. Motion carried unanimously.
RESOLUTION 2025-12
A RESOLUTION DECLARING EQUIPMENT AS SURPLUS AND AUTHORIZING
THE SALE OF THE SAME
WHEREAS, the City of Houston Council has been advised by staff that the following item(s) or equipment are no longer needed for current or future municipal operations:
Various Street Name Signs
AND WHEREAS, the value of this/these item(s) is estimated to be less than $25,000,
NOW THEREFORE, BE IT RESOLVED, by the City of Houston Council, as follows:
- The council declares the property listed above as surplus.
- The council authorizes the disposal of said property by advertising it for sale on the open market pursuant to Minn. Stat. §471.64 subd. 1 at a price of $** per sign, which is fair market value of the property.
- Pursuant to Minn. Stat. §15.054, the property will not be sold to a city officer or employee.
- All sales shall be final, and the property is to be sold in “as-is” condition and on a first come, first served basis.
Truth in Taxation Public Hearing: The city is required to schedule a Truth in Taxation (TNT) hearing. Motion by Baumann, seconded by Westby to schedule the TNT hearing for Monday, December 8, 2025, beginning at 6:15 p.m. Motion carried unanimously.
Minutes and Bills: Motion by Baumann, seconded by Westby to approve the minutes of August 9, 2025, regular meeting, and bills as presented. Motion carried unanimously.
Items to be Placed on File: Motion by Baumann, seconded by Westby to place the following items on file. Motion carried unanimously.
Library Report and statistics
Adjourn: Motion by Westby, seconded by Baumann to adjourn the meeting at 6:51 p.m. Motion carried unanimously. The next regular meeting of the Council is scheduled for Tuesday, October 14, 2025.
By: Scott Wallace, Mayor
Attest:Michelle Quinn, Clerk/Administrator
Above proceedings are only a summary. Full text available for public inspection at City Hall as well as the following website: www.houston.govoffice.com
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