City Administrator Ryan Throckmorton presented a quote from American Legal Publishing to codify or provide an update of current regulations/ordinances at the city council’s September 2 meeting.
Throckmorton explained the city has 21 new ordinances since the Preston City Code was last updated in 2022; the quote for codification is in the amount of $1,700 to $2,400. An additional $195 will be charged for online updates. The quotes were approved as recommended by staff.
Property Purchase
The city council, at its last meeting, directed the city attorney to draft a purchase agreement for the purchase of the property at 308 Pleasant St. SE. The proposed purchase of the property by the city was reviewed at Planning and Zoning. The purchase is compliant with the city’s comprehensive plan. The property lies 100% in the floodway.
Throckmorton explained the sellers had requested two changes to the drafted purchase agreement. They want the taxes to be prorated and language in the purchase agreement that warrants that buildings are within property lines and access to the property removed. The sellers have never lived on the property and are not familiar with it. The sellers have approved and signed the purchase agreement with these changes.
The sale price for the property is $90,000, of which $1,000 will be collected as earnest money. The city council approved the purchase agreement. Staff will request a title search and plat drawing. The sale is expected to be closed on or before December 31, 2025.
Other Business in Brief
- Discussion of the 2026 budget continued. Throckmorton reported the health insurance increase for renewal came in with a 18.37% ($20,291) increase. The estimate had been for a 15% increase; the increase in the budget due to the higher increase will be $3,631. The higher increase in health care insurance, outlined by the League of Minnesota Cities, is due to use of new specialty prescription drugs, provider reimbursement increases, and higher utilization by an aging workforce.
The unexpected increase in health insurance and an increase in the EDA budget ($1,400) will change the potential increase in the levy for 2026 from 5.11% to 5.53%. Throckmorton noted the impact of the Paid Family and Medical Leave (PFML) 0.88% tax is still being calculated. He pointed to a few options for some cuts. Councilman Steve Hall said he didn’t have a problem with the 5.53% increase; he expressed his concern with keeping the increase too low, recognizing that it could be higher in the next year or two.
The increase in the levy felt by Preston residents will be less due to the decertification of TIF district # 9, B & B Bowl and Restaurant. A vote on the 2026 preliminary levy will take place at the next meeting.
- Approval was granted for the annual contribution to SMIF in the amount of $1,000.
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