At the August 17 meeting of the Preston City Council, a list of possible uses were discussed for the city’s $100,127 distribution of CARES Act funds. The funds must be expended by November 15. The total amount of possible uses for COVID related expenses exceeded the amount of available funding.
City staff compiled a list of possible uses. Ambulance equipment upgrades, including intercom radios for the ambulance (allows driver to be isolated), a power cot (allows for better distancing between EMTs and patients), and power load systems for each of the two ambulances (allows for better distancing between EMTs and patients), could use over $73,000 of the available funds. COVID-19 stipend increases and other expenses for EMT pool could come to over $23,000.
PPE costs for all city departments and technology upgrades for remote meetings and remote work could total about $7,500.
There are already plans to forgive 25% of EDA Emergency loans for businesses and non-profits. Another possible use is to forgive up to 100% of these loans. Also, another possible use was resident utility assistance for customers who could demonstrate inability to pay utility bills directly due to COVID-19.
The council approved prioritizing the use of the funds for the city’s general expenses (PPE and technology) and ambulance staffing and equipment upgrades. It was noted that the county’s proposal for CARES Act funding sets aside funds for businesses and non-profits.
2021 Budget
The first draft of the 2021 budget was discussed. City Administrator Joe Hoffman explained that with a levy increase of 7.5%, funding could be available for debt service for the 2021 Street Improvement Project. This would allow the first bond payment to be made in 2022, which would allow the bond to be paid off a year earlier. Hoffman also noted if the council wanted to spread the levy increase for the project out over two years that could be done; and the first payment may still be able to be moved up one year.
By consensus, the council agreed that for 2021 they would like to aim for a 5% levy increase. The Local Government Aid increase is about 1%, or $5,071. Hoffman said the future of LGA is unknown. Lodging tax is way down this year. However, Hoffman was optimistic about the lodging tax being back up next year.
Hoffman recognized Deputy Clerk Sheila Marzolf for the work she put in to compile the budget book. The actual heath insurance increase is still unknown, but has been figured in as a 15% increase. Ten thousand dollars were added to the budget for the maintenance of Crown Hill Cemetery. The street improvement account increased over $46,000 for the 2021 Street Improvement Project.
Other business in brief
•The first meeting in September will be held on Wednesday, September 9.
•An amendment to the Power Sales Contract with Southern Minnesota Municipal Power Agency (SMMPA) was approved. It clarifies how the output of customer owned generation is purchased by SMMPA. The amendment has little effect on Preston.
•Greg Hoff requested approval of a lot split. He wants to purchase approximately 58 feet by 274 feet of property from Helen Winslow. At the last council meeting an option agreement with Winslow and Cliff Sackett was approved to purchase 3.75 acres from the two property owners. A feasibility study is being done for future development of these acres. City Attorney Dwight Luhmann didn’t know if the two property areas would overlap. Mayor Kurt Reicks said he wants to take some time to check the boundaries before the council acts on this, so it is done correctly. Hoff agreed. Parties involved will check on the boundaries and come to an agreement on the property lines. Hoff’s request will be brought back to a future meeting.
•Approval was given for the city to contribute $1,076.60 to Preston Legion/VFW for the purchase 92 American flags for 2021, as requested by the Serviceman’s Club.
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