Developer Andy Bunge submitted a request at the August 18 Preston City Council meeting for the council to add the improvement of the 300 block of North St. NE to the city’s street improvement priority list. Mayor Kurt Reicks was absent.
Bunge said the development on that block is complete. He noted there was nothing in the development agreement with the city several years ago that required the city to improve this portion of North St. NE. There is also no statement that makes the developer responsible for improving the street. The street currently is gravel.
Bunge said the properties could be assessed on the north side of the street along with the owner of a shed. He suggested a 16- to 18-foot-wide blacktopped street with drive over curbs on both sides would be adequate. This width will allow traffic to go both ways. Bunge noted the property tax prior to the building of three houses was $276; now the total property tax is $12,832 with about $8,000 of that going to the city.
Bunge reported he has spoken to each of the homeowners about the possible street improvement; they know they will be assessed for the improvement.
Councilman Charles Sparks asked about the need to replace any infrastructure/utilities under the street. City Administrator Ryan Throckmorton explained, if the city council sees a need for the improvement, the next step in the process is a feasibility report. If there is a need for utility improvements/extensions the total up-front cost could be over $325,000 (this figure is for a 28-foot-wide street). In this case the city/utility portion could be over $235,000.
Throckmorton maintained a feasibility study will cost $3,500-$4,000. He added Golfview Dr. improvements are estimated to cost $300,000. The next major street improvements are planned for 2029-2030. Current street reserves total $425,000.
Throckmorton said the council has three options to consider. Is there a need for the North St. NE improvement to happen before the Golfview Dr. improvement? Could a small project be financed prior to 2029? Should the North St. NE project be added to the 2029 larger project?
Councilman Steve Hall said he would not have a problem delaying the Golfview Dr. project, acknowledging that it does need to be done. Throckmorton said there are no utilities under Golfview Dr. It could be pushed back until there is a substantial completion of development. Bunge said there is no reason to improve Golfview Dr. until the extra traffic required for the development is done.
Bunge encouraged the city council to at least approve a feasibility study to see if utilities need replacement. He thanked the city for allowing the development. The homeowners support the street improvement. Throckmorton said the petitioners/homeowners will be responsible for payment of the feasibility study. A motion was approved to proceed with the feasibility study by the city engineer; petitioners will bear the expense of the study which will be deposited with the city before the study begins. Bunge said he will talk to the property owners.
2026 Budget
Throckmorton reviewed the first draft of the 2026 budget. Preliminary figures require a 5.11% increase in the levy, or an increase of $65,102. Local Government Aid increase for 2026 was $406, or a total of $539,709. Every 1% of the levy increase represents about $12,740. Health insurance, salaries, and the new Minnesota Paid Leave wage tax drive a lot of the budget increase. Minnesota Paid Leave wage tax has yet to be negotiated with the employees’ association for cost share. Throckmorton acknowledged that the 15% increase in health insurance used in figuring the first draft might be less than the actual increase. The actual health insurance cost will be available late in August.
The 2026 budget will be discussed again at the next meeting. The preliminary levy will need to be adopted before the end of September.
Other Business in Brief
- The hire of A. LaPierre and K. Sears as part-time officers pending satisfactory background checks was approved.
- The Towards Zero Death agreement was approved.
- The meeting was closed to discuss the possible purchase of property located at 308 Pleasant St. NE. City Attorney Joe O’Koren was directed to draft a purchase agreement.