Photo by Jim Bakken
Preston said goodbye to its long serving City Administrator Joe Hoffman at the February 22 meeting. He has been with the city for 17½ years. Mayor Kurt Reicks congratulated him, “It has been great working with you,” as he presented Hoffman with a Key to the City. Hoffman will be leaving by the end of this week to take on his new job.
Hoffman explained the city council could conduct a search for his replacement on their own or they could hire a search firm to recruit a city administrator. Reicks strongly encouraged the council to hire a firm. Hoffman presented them with proposals from two firms. The council unanimously voted to hire South Central Service Coop, Mankato, at a cost of $8,810, which was substantially less than the other proposal. Both firms said they would provide at no cost the search for a replacement, if the position again opened up within two years.
Hoffman has served both as city administrator and utility general manager. The search will be only for a city administrator. Public Works Director Jim Bakken will take on the additional role as utility general manager.
Deputy City Clerk Sheila Marzolf will take on the additional role of interim city administrator until a new administrator is hired. City/utility secretary MariLyn Bakke will take on the additional role of interim zoning administrator until the new administrator is hired. With their appointments to the interim positions, both Marzolf and Bakke will receive an additional $5 per hour compensation for the additional interim responsibilities.
Compensation study
Mark Goldberg, David Drown Associates, reviewed the 2022 classification and compensation plan for city and utility workers. The goal is to ensure jobs are classified appropriately and compensated for competitively and equitably. A market analysis compares Preston with 21 cities/county with which Preston competes for talent. The city was found to be pretty well aligned with the market.
It was found that there were “zero employees paid above the salary range maximum or below the range minimum” in utilities. The Preston Public Utilities voted to approve the overall plan for utility employees which comes with an impact of a 1.6% increase.
For the city it was found that zero employees are paid above the salary maximum, and one employee is paid below the salary range minimum. The option selected to be implemented will have a budget impact of 3.28%.
Hoffman said this has been a good process. The market data used was based on 2021 figures. The city/utility together employ 18 people. Hoffman said the study puts us in the middle of the market. He asked the council if they wanted to keep up with the market; Hoffman estimated the actual cost of step increases recommended will cost less than $10,000. Salaries are currently nearly 5% below market even though they are considered market competitive.
Councilman Robert Maust argued that employees receive good benefits also. Goldberg suggested the benefit package the city provides is similar to other cities in the study. Reicks insisted we have to stay competitive to keep the employees we have. Councilman Charles Sparks agreed. A motion to adopt the compensation plan was approved 3-2. Maust and councilman David Collett voted no.
Market value changes
County Assessor Jason McCaslin said his role in the property tax system is to ensure the property tax burden is distributed evenly according to Minnesota Statutes. When valuations increase or decrease in a jurisdiction, the amount of revenue being raised remains constant. The Minnesota Department of Revenue requires assessment statistics to be maintained at a compliant level, which includes a median ratio of 90% to 105%.
Preston’s residential median ration currently is below compliance at 72.46%. Some of the tax burden will likely shift from business to residential. McCaslin’s preliminary analysis indicates a 30% increase in residential building values to bring the median ratio to 94.75%. The nearly 30% increase will affect the home valuation, not the land value. Preston is not alone, as market adjustments across the county will range from 15% to 45%. It must be noted that Fillmore County is primarily agricultural. There will be increases in Ag valuations, also.
Property owners will receive notice of their valuations and classifications at the end of March. If one has questions about the information, the first step is to call the assessor’s office to have the valuation reviewed. If still not satisfied, the next step is an appeal at the local board of appeal and equalization, if applicable. The next step is an appeal at the county board of appeal and equalization. Lastly, one can take the final step and file with the Minnesota tax court.
Other business in brief
• The council unanimously accepted ownership of ambulance equipment from the City of Lanesboro. Preston’s Ambulance Service has assumed the ambulance duties on behalf of the City of Lanesboro. Equipment includes a 2013 ambulance.
A second resolution was approved unanimously accepting $50,000 in ambulance funds from Lanesboro, as a contribution toward a new ambulance.
A lease agreement was approved with the City of Lanesboro for the use of an ambulance storage garage at 211 Rochelle Ave. N, Lanesboro. The Preston ambulance service area now also includes the cities of Lanesboro and Whalan plus five additional townships.
• Fire Department Fire Chief Ramon Hernandez thanked the council for their support in 2021. The department has 25 members and went on about 70 calls in 2021. A list of 2022 officers was approved: Chief Hernandez, Assistant Chief Leigh Larson, Treasurer Dustin Arndt, Secretary Marcus Ertl, and Training Officer Steven Schlichter.
• The next council meeting will be held on March 7.