At the December 2 city council meeting, it was decided to look into other options for the EDA. No motion was made to sign a 2025 contract with Community for Economic Development Associates (CEDA) for 2025. The current contract with CEDA provides for an EDA director for two days per week; the contract will end December 31, 2024. Councilman Dean Aug was absent from the meeting.
CEDA’s offer of a 5% increase, or $53,581, for the position in 2025 and a plan for improved oversight did not sway council members. Councilman Steve Hall said he wants results, not words.
City Administrator Ryan Throckmorton had listed three other possible options and asked to get direction from the council. He said he had reached out to other communities to see if there was interest in a collaboration with them to offer full time employment with shared services. Some communities have expressed an interest in sharing the service. Two other options were: Preston could hire a part-time EDA director for 16 or 32 hours per week, or the city could check with another provider that offers EDA services, like Southeast Service Cooperative.
Mayor Kurt Reicks suggested the council direct staff to speak with other communities about collaboration and/or talk to Southeast Service Cooperative. Reicks said he wanted more input but liked the idea of working with other communities, sharing the cost of a full-time EDA director. Staff was directed to look into both options.
Truth in Taxation
Throckmorton presented a detailed report on 2024 activities and the 2025 city budget and tax levy. Due to the fact that many had just received notice of their proposed property taxes for 2025 this day or haven’t received them yet, he suggested they could wait until the December 16 meeting to adopt the 2025 final levy resolution. Notices should have been received by November 24. No one from the public was present at today’s meeting. The Truth in Taxation meeting is required to present the final levy and to allow for a public comment period. It is not the meeting to discuss property values or property classification; The Board of Appeals and Equalization is held in the spring.
During 2024, a five-year Capital Improvement Plan was implemented, the Capital Financing Plan was reviewed, initial steps were taken for the WWTP upgrade, ash trees were removed from public property, a new ambulance was ordered, a new plow truck was purchased, one-time public safety funding was used for upgrades for Police/Fire/EMS, upgrades were made to city hall/library facility, a review was initiated of community pool needs, an employee assistance program for staff was implemented, the EDA/Tourism position was restructured, a tourism director and a law enforcement officer were hired, 2024 elections were completed, a council review form for public requests was created, computer/server upgrades for security were made, web access/email was moved to .gov, and the Department Budgeting Process was streamlined using online access for department heads.
The proposed levy for 2025 is $1,274,789, which is an increase of $73,084, or 6.06% over 2024. Throckmorton noted Minnesota cities averaged an increase of 8.8% for the 2025 levy. Local Government Aid to the city will be $539,303, or an increase of just $187 for 2025. The proposed tax levy will make up 54% of the revenue for the city in 2025.
Increases in expenses in the 2025 budget include a 5.2% increase in health insurance and a 3.5% increase in salaries.
No action was taken this day on the proposed 2025 budget and the certification of the final levy for taxes collectable in 2025. At the December 16 city council meeting, citizens that want to comment on the 2025 budget and levy may have an opportunity to do so. Portions of the Truth in Taxation presentation may be reviewed before action is taken on the final levy.
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