City Council - Regular Meeting

CALL TO ORDER THE REGULAR MEETING OF THE ULBRICH LEAVE CITY COUNCIL FOR MONDAY, JUNE 22, 2026. CLERK, PLEASE CALL THE ROLE.

COUNCILOR CHRISTIANSEN. HERE. COUNCILOR BAKER.

HERE.

COUNCILOR HERMAN.

HERE.

COUNCILOR OLSEN. HERE. COUNCILOR VAN BEEK.

HERE.

COUNCILOR ANDERSON.

HERE.

AND MAYOR MURRAY.

HERE. WOULD YOU PLEASE RISE AND JOIN ME IN THE PLEDGE OF ALLEGIANCE. Welcome to everyone tonight. We're glad you're here, whether you're online or here in the chamber. With that, we'll move along to item three, which is a ceremonial item. Tonight, we have the oath of office of police officer, Joe Johnson. Chief Hanson.

Thank you, Mr. Mayor, members of the council, city officials. It's my pleasure tonight to introduce to you Joe Johnson. He is one of our newest police officers, our most recent police officer to complete FTO. Joe is from the community. He spent several years with the sheriff's office, primarily in transports and court security. He got out of law enforcement for a short time, and when he chose to get back into the field, he chose the Albert Lee Police Department. So we feel fortunate and blessed to have Joe come to our agency. Joe's family lives in town with him, and as you can tell, he enjoys riding motorcycle. Joe, please step up, and the clerk will give you the oath.

If you'll raise your right hand and repeat after me. I, state your name.

I, Joe Johnson.

Do solemnly swear.

Do solemnly swear.

To support the Constitution.

To support the Constitution.

Of the United States.

Of the United States.

And of the state of Minnesota.

And of the state of Minnesota.

And faithfully and impartially.

And faithfully and impartially.

Discharge the duties of police officer.

Discharge the duties of police officer.

For the city of Albert Lee.

For the city of Albert Lee.

Police Department.

Police Department.

In accordance with the laws of Minnesota.

In accordance with the laws of Minnesota.

And the Charter of the City of Albert Lee.

And the Charter of the City of Albert Lee.

Freeborn County and the State of Minnesota.

Freeborn County and the State of Minnesota. So help me God. So help me God.

Thank you.

GLAD YOU'RE HERE. THANKS FOR COMING BACK. YOU'RE NICE, JOE.

THANK YOU. YOU'RE WELCOME.

ALL RIGHT, THANK YOU, AND THANKS TO THE OTHER POLICE OFFICERS HERE TONIGHT. WE APPRECIATE YOUR SERVICE TO OUR COMMUNITY, AND LET'S BE SAFE OUT THERE.

THANK YOU.

ALL RIGHT, ITEM FOUR IS A PUBLIC FORUM. ALL RIGHT, WE HAVE FOUR PEOPLE ON THE PUBLIC FORUM TONIGHT. IF YOU WISH TO SPEAK JUST ON THE EDA ITEM THAT WE'LL BE TALKING ABOUT LATER, THERE WILL BE A PUBLIC HEARING DURING THAT TIME FRAME. SO KEEP THAT IN MIND IF YOU WISH TO JUST SPEAK DURING THAT. IF NOT, JOHN KOKUT.

THANK YOU, YOUR HONOR. I DO HAVE SOMETHING ON THE EDA, WHICH I'LL SAVE FOR LATER. BUT I DID HAVE ONE QUESTION ABOUT THE SONGBIRD TRAIL THAT WAS NOT ADDRESSED IN THE PREVIOUS. AND I WONDERED HOW A NO VOTE WOULD AFFECT THE ADAMS AVENUE REDEVELOPMENT AS A TRAIL HEAD. THAT WAS MY COMMENT. SO WHEN THAT COMES UP. OKAY. THANK YOU.

THANK YOU. ALL RIGHT. NEXT ON OUR LIST IS MARY UMSTAD. WELCOME.

MR. MAYOR AND COUNCILMEN AND COUNCIL LADIES.

YOU WANT TO PULL THAT DOWN? YEAH, THERE YOU GO.

I DO. MY TALK IS GOING TO TAKE A FEW MORE MINUTES. I'm Mary Packer Olmstead. I own the Mary Grant Shop down the street. On Friday afternoon, a semi pulled in front of my shop after 3 p.m. Five years ago, the same thing happened. I lost a lot of business that year. During Eddie Cochran days, I had words with that person who parked and blocked my sails. I was hurt then. I'm more hurt now. I went out to confront four men unloading Mr. Shipper's semi. I said, I hope you guys are only unloading because I don't want to experience what I did five years ago. Loss of money, loss of business. A man with John Shipper's group called me an avid bitch and said, we have a permit. A security guard proceeded to tell me to keep my mouth shut, to mind my own business, said I have no right to speak up, told me to get back in my store, that I had no idea what I was talking about. Then he raised a hand, his finger pointing many times as his fist came up and my husband stood behind me and said, don't you dare touch her. I called Larry Baker, my councilman, the police, and my good friend Martha Sitchko Jones. I was hysterical. Larry was at my side in seven minutes. The police got there when they could. They listened to me, were kind. John Shipper had a permit, and there was nothing they could do. They were sympathetic. I walked around the semi and took pictures as they opened up a huge window to the street and I said, as I'm taking pictures, so it's okay for you to block my total business so you can sell your product. I was devastated. Larry gave me per phone to Daphne, who gives out permits. Poor Daphne also suffered the wrath of Mary's hysterics. Why am I not valued in this community after 38 and a half years in business? Why is my business unworthy of also contributing to Eddie Cochran days? I'm sorry I have to tell you this. or that it's longer, I'm sorry it's longer, not that I have to tell you this. 40 years ago, I was hired by the Kahler Hotel to be the new bar manager. The new bar was Squiggy's at the Hop. It had been the corn-crip lounge for years. Squiggy's was everything 50s, the food, the black and white tiled floors, the jukebox. The first band I hired were the Furness Brothers, associated with the platters and the ink spots. I was sent by my bosses, Joe LaFrance and Nick Geekis, to attend the Buddy Holly event at the Star Ballroom in Clear Lake. They dedicated a monument in front of the surf and they changed the East Corner Street to Buddy Holly Place. It was so amazing to me. I got to be part of it. I got to meet Maria Elena Holly and Buddy Holly's banned the Crickets, the Big Bopper Sun, the White Sidewalls band group. For me, it was spectacular. I came back to Albert Lee overjoyed, ebullient, exuberant with ideas. I called Mike Whitus, Dave Nolander, both at the radio station, and Mike reached out to a DJ from Fairmont who they called Wolfman because he looked like Wolfman Jack. I was ecstatic and in Squiggy's at the Hop the Bar, I said, we need to establish Eddie Cochran days. If Clear Lake can have Buddy Holly celebration, Albert Lee needs to celebrate Eddie Cochran. I have some pictures from back then and I have a note from Eddie Cochran's family thanking Squiggy's because of They're going out of the way. So that's my story, my sad dilemma. I gave my all years ago to something I believed in. I went on, purchased my business, and Mike White has certainly took over the great development of Eddie Cochran Days. He is the pride and joy of our town, and I'm humbly grateful that my excitement created the idea. I was so pumped, my husband and daughter and I, able to share this incredible experience in Clear Lake. Our daughter rode up and down the elevator with the Big Bopper's son. Little bit more. When something like this occurs to you, you take a deep introspection and you take a deep personal inventory of what has occurred in your life. I have folks from La Crosse, Des Moines, the cities, every small town in Iowa within a 150 mile radius who can sign and shop at my store. I simply don't feel like I deserve this unappreciation. My heart aches as I am ready to sell my shop. I've had the greatest passion and pleasure to be a part of this community. The community embraced me, and I embrace the community. I love my shoppers, my clients, and everyone who graces my threshold. I am embarrassed, ashamed, and insulted to have been treated this way. Thank you.

Thank you, Mary. All right, next we have Thomas Newell.

WELCOME, TOM. THANK YOU. GOOD EVENING. AND I APPRECIATE YOUR HEARING ME. I CAME BEFORE THE COUNCIL HERE A COUPLE MONTHS AGO REGARDING PHILIP JOHNSON BEING APPOINTED AS AN ABSENT ECONOMIC DEVELOPMENT PERSON FOR THE COMMUNITY. I WAS TOLD THAT IT WAS GOING TO BE INTERIM. IN THE PAST WEEK, I'VE BEEN RECEIVING PHONE CALLS FROM PEOPLE IN THE COMMUNITY ASKING ME TO COME FORWARD AGAIN BECAUSE THEY HAVE HEARD THAT THE CITY IS ABOUT READY TO SIGN A THREE-YEAR CONTRACT WITH OUR ABSENT ECONOMIC DEVELOPMENT MAN. BEFORE YOU DO THAT, I WOULD LIKE TO HAVE AN EXPLANATION AS TO WHAT THE SEARCH parameters were, what your efforts were to attract somebody to the position that could be in attendance in Albert Lee, and what those requirements might be for anybody that would be interested. Has it been open to anybody in the community? IF SO, DO THEY NEED TO HAVE A SPECIFIC BACKGROUND OR EDUCATION? THANK YOU. THANK YOU, TOM.

AND I WILL FOLLOW UP PERSONALLY WITH YOU TO GIVE YOU YOUR ANSWERS.

I APPRECIATE THAT.

THANK YOU. NEXT UP IS CHARLES NEWELL.

Good evening, thank you, everyone. Similar to my father, I just was asked by several people in the last two weeks, similar to about the position at Aleta, and I've been out of the loop for a while, and after you hear it four or five times in a short period of time, it just made me question and wanted to come to this council meeting to ask questions and understand more what's going on so I can report back to my neighbors and various people. So thank you. Thank you.

All right, we'll move along to the item five is a consent and approval of agenda. A is the approval of minutes of the June 8th, 2026 regular council meeting. Item B is approval of minutes of the June 8th, 2026 work session. And item C is license and permits. Council? Move to approve the consent and approval of agenda, your honor. Motion by Councilor Baker. Is there a second?

I'll second, your honor.

Second by Councilor Herman. Any further discussion or questions? Hearing none, all in favor of the motion signify by saying aye. Aye. Opposed, nay. Motion carries. Item six is Petitions, Requests, and Communications. And A is the 2025 Annual Comprehensive Financial Report. Now, are we going to... I'll just, your honor. Go ahead, City Manager.

I'LL JUST GIVE A VERY QUICK REPORT, AND THE AUDITOR, ONCE THEY'RE AVAILABLE, WILL COME IN AND GIVE THE REPORT. SO AT SOME POINT, WHEN WE FIND A GOOD BREAKING POINT, WE WILL GO AHEAD AND DO THAT. BUT JUST FOR THE MINUTES AND FOR THE PUBLIC, Bergen KVD has audited the 25 financial statements and they are now available for review for the city council and the public. Again, a Bergen KDV representative will be present to provide a summary of the reports. We do recommend acceptance of the annual comprehensive financial report. and at such time when they are able to arrive here, once we conclude the business on that particular item, I would suggest that we come back to item six and have them give the presentation and acceptance of the audit report.

All right, we'll move along then to item seven, unfinished business. A is the ordinance amending zoning and the land use map from the single family residence R1 to industrial district I2 for Outlot A of Battelson-Rankin addition. This is the second reading, city manager.

Thank you, Your Honor. Rezoning is requested for Outlot A of the Battleston-Reichen addition from R1 to I2 to support the future sale and potential expansion of vortex cold storage. I would say the future sale of properties and the expansion of vortex cold storage. Adjacent vortex property and the remaining Port Authority No. 3 Alita Jobs Park are already zoned industrial, so the change is consistent with surrounding uses. While the 2040 comprehensive plan designates the area for residential use, the development patterns show the corridor functioning as industrial. Staff recommends. Excuse me. Staff recommends amending the plan following rezoning approval to reflect existing conditions. The Planning Commission held a public hearing on June 2nd, 2026, and recommends approval based on the findings of rezoning, consistency, and zoning compatibility. Staff recommends approval of the second reading.

Council? Move to approve, Your Honor. Motion by Councilor Baker. Is there a second?

I'll second, Your Honor.

Second by Councilor Herman. Any further discussion? ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. OPPOSED, NAY. MOTION CARRIES. ITEM 8 IS NEW BUSINESS. A IS A RESOLUTION ACCEPTING BID FOR THE 2026 LEAD SERVICE LINE REPLACEMENT PROJECT, JOB 2606. CITY MANAGER.

THANK YOU, YOUR HONOR. ENGINEERING HAS REVIEWED THE BIDS OPENED ON JUNE 2, 2026 FOR THE 26 LEAD SERVICE LINE REPLACEMENT PROJECT. THIS PROJECT IS A CITY PROJECT DESIGNED AND ADMINISTERED BY THE THE PROJECT INVOLVES REPLACEMENT OF LED SERVICE LINES THROUGHOUT THE CITY. THIS IS THE THIRD YEAR OF LED SERVICE LINE REPLACEMENT PROJECTS. THE CITY HAS SECURED APPROXIMATELY ONE MILLION IN GRANT FUNDING FOR THIS PROJECT. THIS IS LESS THAN IN PREVIOUS YEARS. THE PLANS AND SPECIFICATIONS WERE WRITTEN IN A WAY THAT WE CAN REDUCE THE AWARD AMOUNT AFTER THE AWARD A change order will be done to reduce the award to match funding. This project was let as one advertisement bids with two subgroups with 75 service line replacements within both. Bidders were allowed to bid on any combination of groups one and two, and the contract was awarded to the low bidder of each group. The engineer's estimate was $1,163,877.42. We received four bids for group one and three bids for group two. The engineers recommend the low bid for each of the project groups, Platinum Plumbing, in the amount of $511,465 for Group 1, and BCM Construction of Faribault, Minnesota, in the amount of $537,877.60 for Group 2. Total contract will be $1,049,342.60. Staff recommends approval.

Council? Move to approve, Your Honor. Motion by Councilor Christensen. Is there a second? I'll second, Your Honor. Second by Councilor Van Beek. Any further discussion?

Councilor Baker. I just want to say it's nice to see that amongst the bidding we had a local company and that they won the bid. So it's always nice to see that we get a local company doing some work for the city. All right, thank you. Any other discussion?

I'LL JUST MENTION THAT I WILL BE ABSTAINING FROM THIS VOTE BECAUSE I HAVE A FAMILY MEMBER THAT'S PART OF THAT BUSINESS. ALL RIGHT. ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. OPPOSED, NAY. AND I ABSTAIN. ALL RIGHT. MOTION CARRIES. ITEM B IS A RESOLUTION ACCEPTING BIDS FOR A PORTION OF THE SONGBURG TRAIL IN COOPERATION WITH FREEBORNE COUNTY, JOB 2411. CITY MANAGER.

Thank you, Your Honor. Freeborn County and the City Engineering have reviewed the bid openings by Freeborn County on Tuesday, June 2nd, 2026, for a portion of the Songbird Trail. The first portions proposed to be constructed is from Fountain Street to Highway 13, and then a portion from Sunset Street to County Road 74, as well as the four bridges. The county received two eligible bids, with the low bidder being Ulan Brothers. Engineering and Freeborn County are recommending accepting the low bid and awarding a contract of $2,196,920.72 to Ulin Brothers of Albert Lee, Minnesota. Engineer's estimate was originally $1,526,876.34. The bid abstracts were attached in the packet. Because the bids were significantly higher than engineering estimate, the plan is to remove a gravel portion of the project. So that reduced the contract total by 93,000. The higher bids increase the city and county costs significantly. The new estimated amounts, at least that are in the resolution seeking approval, would be originally were $620,953 in AT grants, $250,000 in DNR connection grant, $300,000 in DNR regional grant. ESTIMATED LOCAL CITY FUNDS WOULD BE $466,488, AND ESTIMATED FREEBORN COUNTY LOCAL FUNDS WOULD BE $466,488. Additionally, what I would like to say is that we do believe that we can get this down with a combination of some other available grant funding down to approximately $350,000. But right now, a couple things. The county has to also approve on their end, and technically it is their project. Two, we then have to get a contract from, I believe it would be the DOT, as to the increase in the AT grant. After construction, the city total cost will be approximately $685,000, but we do believe we can reduce it by about $100,000. And the funding source for the construction will be from Fund 401. So 401 is a fund that we've been using for miscellaneous construction projects. We did have this portion of the trail originally in Fund 401 to be funded. It's just slightly higher, but there still is funding available. And without the sales tax, without the sales tax right now, AS WE WERE ORIGINALLY PLANNING TO TAKE CARE OF THE TRAIL PROJECT, WE WILL PROBABLY BE REVERTING BACK TO OUR ORIGINAL PLAN, WHICH WAS TO GO FOR HEAVY CONCENTRATION OF GRANTS TO PAY FOR THE VAST MAJORITY OF THE PROJECT. SO 80, 90, IN SOME CASES 100% OF THE CONSTRUCTION WOULD BE FUNDED FROM GRANTS. AND WE WOULD BE LIKELY MOVING THIS PROJECT A LOT SLOWER AS A RESULT OF WAITING FOR THOSE GRANT CYCLES AS OPPOSED TO potentially going a little bit faster in which we could have used the sales tax for that project. So our change plans to use the sales tax has actually forced us to go back to our previous plans from a few years ago of relying heavily on grants moving forward. This would probably be the highest concentration we would be seeing from the city on this project.

All right, Council? We'll approve, Your Honor. Motion by Councilor Anderson, is there a second?

Second.

Second by Councilor Baker. Further discussion by the council?

I would like to- Councilor Baker. I would just like to have the city engineer go through some of the things that he went through in our work session, if you would, as to the different things that are in this project and what we are going to possibly eliminate.

City Engineer, Mr. Yonke. Sure, well, yes, the project would start at Fountain Street, and it would go northwest over to Highway 13. In that section, it would all get paved, and then there is a bridge in that section that would be completely reconstructed, and then it would skip over Highway 13 and go north to Sunset, and then at Sunset, we would begin the paving again from Sunset up to County Road 74, AS PART OF THAT, THIS PROJECT, THAT WOULD GET PAVED. AND THEN THE PIECE WE TOOK OUT, WE WERE GOING TO DO A GRAVEL PORTION JUST NORTH OF 74. THAT'S THE PIECE WE'RE TAKING OUT OF THE PROJECT. AND THEN THERE'S THREE BRIDGES ALONG HIGHWAY 13 THAT THE BRIDGES DON'T NEED TO BE REPLACED, BUT THE TOP SECTIONS OF THOSE NEED TO BE BASICALLY CONVERTED TO A TRAIL FROM A RAILROAD SECTION, SO THEY HAVE TO BE MADE SAFE FOR PEDESTRIANS.

I just want to talk a little bit. I talked about this at the work session. And this has been going on for at least 12 to 13 years from a joint meeting that the council and the commissioners had to talk about this. And at that time, there wasn't a lot of... There wasn't a lot of people that were kind of interested in it, especially on the commissioner's side. And as this has progressed, we've come this far. We've talked about this. We've had different meetings about this. And one of the things that has happened is we, as a city and the county, have been able to work together to get to this point. There's quite a lot of... There's quite a decent amount of money in the grants that's involved with this. I don't know. Nobody knows for sure, but if we were to not approve this and let those grants go away, what would our chances in the future be? Nobody really knows. So I think it's important that... this whole project moves forward from here and get it started. Because I think this also falls under the piece of pie that we're working on with economic development, housing, and with this, this brings in, this works under the destination part of what people in this community have been working for on a long time, and I just want to mention the fact that the people that I've talked to, most of the people that I've talked to, are really excited about this. So, that would be Your Honor. Right, thank you.

Additional comments or discussion by the council?

Your Honor.

Councilor Christensen.

There are a lot of wonderful things about this project and I appreciate the many, many hours that have been spent by our city engineer, the county engineer, the trail group that's been working on all of these things, planning, all of that. But since we lost our planned funding with the local option sales tax, I am going to vote no on this project. Not that I would hope it would NOT BE BROUGHT BACK AT SOME TIME WHEN WE HAD A BETTER FUNDING SOURCE, BUT I DID MAKE A COMMITMENT AT OUR TRUTH IN TAXATION THAT WE WEREN'T FUNDING NON-ESSENTIAL THINGS LIKE TRAILS. YOU KNOW, TRAIL IS NOT ESSENTIAL FOR US AT THIS POINT IN TIME, SO WHILE I SUPPORT THE PROJECT, I'M GOING TO VOTE NO AT THIS TIME.

All right, thank you. Additional discussion? Your Honor. Councilor Anderson.

Yeah, we had a very long discussion at the work session about this, and there's a couple things that it's worth the public understanding. First of all, that 1.4 million roughly in grant money, could you speak quickly to the rarity of how difficult it is to secure those, and if we walk away from this, the likelihood of us being able to get those again? I think that was Steve that made those comments at our work session. I think that's something good for the public to hear.

It's just, you know, they commit the money too overtly. So if we turn it back, they have to find a different spot for it. So it's more than likely, you know, it'll be a while before we see that funding again in the future. If you remember with the Blazing Trail, Star Trail, we worked for almost 15 years before we got funding for that one. So, I mean, it's out there. If we turn it back, it's hard to get it back again.

Oh, did you have another comment? Go ahead.

Yeah, no, I was just going to say, because I agree with Councillor Christensen about not using the money. But I think it's important, the point that we need to make is that this part of the project had a lot of momentum behind it and a lot of work's already been done. And it sounds like we have a solid plan to pay for it, at least our portion of this, if the county approves their portion of it. That's the reason I'm supporting it, but I also just want to say that we really need to slow this process down if we don't have that sales tax in there. We have to have a funding mechanism that doesn't involve just adding this to the levy. I mean, this part of it, I think, in my opinion, we've done so much work already. The horse has left the stable, so to speak. So that's why I'm willing to support it. But long term, we have to make sure that we have a funding source in order to continue it. Because there's a lot of people that were really excited about this project, including other counties, if we could get regional trail designation on this. But now because of that sales tax, that's a huge blow to this community. It really is, not just for this trail, but a lot of other projects. That's a divide between a Metro representative stopping this for us and the rural communities, because there's so many amenities in our Metro area that they have access to that we struggle to find a way to afford to provide them for our areas, and that's very frustrating. So hopefully we can get that funding back, but I will support this part of it. Could we quickly get Christy to talk about the Fund 401 and how this portion of it is going to be paid so that we can get that on the record for the public? Just a second.

City Manager, did you have something to add first?

Well, I could also speak to 401 as it relates to the workshop, is that we do have the funding available in Fund 401, and we do not have any current projects slated for that fund. So otherwise it would sit there. One thing I want to keep in mind is that we already did have some funding plan or some fund use of fund 401 already planned. What we're actually looking at while we're looking at the total and we're talking about the total, in the end, we're probably looking at about a $75,000 difference between what had been originally planned and what we will likely receive as an outcome. And so if there's a quitter, if you still wish to have the finance director speak to Fund 401, certainly could. One thing, though, I do want to also comment on is that while it's not specific to this resolution as it relates to the trail overall, we've had a number of other pieces and communications in with the public about THE TRAIL AND WHAT WOULD BE TAKING PLACE. AND ONE OF THEM THAT WE WERE SEEKING AS IT RELATES TO GETTING FEDERAL EPA MONEY FOR, WHICH WOULD BE THE TEARING DOWN AND THE REHABILITATION OF THE AREA RIGHT BY ALONG THE RAIL LINE ALONG ADAMS. THERE'S A NUMBER OF WAREHOUSES THAT ARE DIRECTLY ABUTTING THAT. AND THERE WAS A PLAN TO POTENTIALLY PUT IN A TRAIL HEAD. First step is still always going to be to tear down those dangerous buildings and environmentally compromised buildings with those federal monies. And then after that, finding an adaptive reuse will come and it will come through the process of finding these other grants if we're not able to use the sales tax. So there may have to be some shifting that would have to occur with what we've shown the public in this project as a result of what comes available in grant funding if the sales tax legislation does not eventually pass the legislature.

Did that answer your question? Yes, Your Honor. Thank you so much. Any additional discussion? Hearing none, all in favor of the motion signify by saying aye. Aye. Opposed, no. No.

What was the other no? Keith.

Keith.

And Rachel.

And me.

And you.

Yep.

Okay.

Motion carries, four three. All right, item C is a public hearing resolution establishing the economic development authority of the City of Elbert Lee. City Manager?

Before we start that, Your Honor, our auditor has now made it here and is able to present under item six as we had postponed.

We'll jump back to item six. This is the 2025 Annual Comprehensive Financial Report.

WELCOME. ALL RIGHT. THANK YOU, MR. MAYOR AND MEMBERS OF THE COUNCIL. APPRECIATE YOU HAVING ME ON THE AGENDA TONIGHT. AND I DO APOLOGIZE FOR NOT BEING HERE AT THE START OF THE MEETING. I WAS TRYING TO TACKLE TWO COUNCIL MEETINGS TONIGHT. SO I WAS DOING ONE VIRTUALLY JUST DOWN THE HALL HERE, AND THERE WERE SOME THINGS ON THE FRONT OF THE AGENDA THAT TOOK LONGER, BUT I WAS KEEPING CHRISTIE UPDATED ON THAT FRONT. SO WE DO HAVE A SLIDE DECK, AS WE HAVE IN PAST YEARS, THAT PROVIDES A GOOD SUMMARY OF THE RESULTS OF THE AUDIT WORK THAT WE DID FOR THE CITY. SO THAT'S WHAT I'LL BE UTILIZING HERE AGAIN, JUST TO TALK THROUGH KIND OF THE KEY POINTS FROM THE VARIOUS DELIVERABLES. IT'S A LOT OF READING INFORMATION THAT'S INCLUDED WITHIN THOSE THAT'S PROVIDED TO YOU. WE GAVE THE FINAL HARD COPIES TO CHRISTIE HERE TONIGHT, SO THOSE WOULD BE AVAILABLE TO YOU AS WELL. BUT, YOU KNOW, TO PROVIDE A GOOD SUMMARY OF THE 250-PLUS PAGES OF INFORMATION, WE CAN CLOSE THIS ROUND.

I'LL LET YOU TAKE THIS. I'LL TURN IT ON FOR YOU.

THERE YOU GO.

One second here. Here we go.

All right. Let's see. Yeah, I guess that'll work. There we go. Yeah, I think that's fine. Just leave it that way. Yep. All right. Oops. Let's see. Okay. Well, I'll work through it here. Some of the – yeah, there we go. If we just adjust it there a little bit. All right. So of the various deliverables that we have – THE FIRST ONE I'LL REFER TO AS THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, SO TOWARDS THE BEGINNING OF THAT VERY LENGTHY DOCUMENT. THERE'S A FEW PAGES THAT'S REFERRED TO AS THE INDEPENDENT AUDITORS REPORT, SO THAT'S OUR PORTION OF IT. WE HELP WITH THE PREPARATION OF THE ENTIRE DOCUMENT, BUT THE TRUE SEGMENT THAT BELONGS TO US OR PERTAINS TO US THAT REFLECTS THE RESULTS OF THE WORK THAT WE DID WITH REGARDS TO THE FINANCES OF THE CITY COMES IN THROUGH THIS REPORT. So within there, there's various sections. The first one that's included, it relates to the opinions that we're providing with regards to the financial statements. The type of opinion that is included is what's referred to as an unmodified or clean opinion is another term that's often used. So that is the optimal result when it comes to a set of financial statements. That's what oversight entities, the The state auditor's office, other state agencies, federal agencies, grantors, bond rating agencies, et cetera, that's one of the key things they're looking at within the financial report to see that there is indeed a clean opinion, that we didn't have issues with the audit as far as not being able to test the necessary documentation. There could be scope limitations, things like that, if we ran into those type of situations. But a very favorable result for the city there with respect achieving that unmodified opinion. And then within that report as well, it touches on the responsibilities of both management and then us as the auditors. Management is responsible for the fair presentation of the financial information to us and appropriate maintenance of internal controls. Our duties as the auditors is to design and execute the audit approach. THAT ADHERES TO THE PROFESSIONAL STANDARDS AND PUTS US IN A POSITION WHERE WE CAN PROVIDE REASONABLE ASSURANCE VERSUS ABSOLUTE ASSURANCE THAT THERE WOULD NOT BE ANY MATERIAL MISSTATEMENTS THAT WOULD GO UNDETECTED AS PART OF THE PROCESS, EITHER INDIVIDUALLY OR IN THE AGGREGATE. Okay, so that reasonable assurance is a term that's used intentionally, but it is meant to provide a high level of confidence that there would not be anything, again, material that would go undetected. 90 to 95% confidence level is kind of how it works out just based on our materiality calculations, sampling, et cetera, that we incorporate into our testing approach and procedures.

Okay?

So with that, then the other deliverables that we have, I'll get to the other information, the financial report, through some graphs that we'll look at. But before I get to those, the other deliverables that we provide, there's a report that captures reporting that we have to do on internal controls, as well as Minnesota legal compliance, and then also for federal awards. Depending on the extent of federal awards expenditures that were incurred, there's some additional compliance audit work for us to do in that regard too. So first, as it pertains to the reporting on internal controls, so the information that can come through in this report can be somewhat wide ranging. So if there's issues we run into where we identify that the city did not have appropriate segregation of duties, checks and balances in place, things like that, THAT WOULD BE SOMETHING WE'D HAVE TO REPORT ON. WE DO NOT HAVE ANYTHING IN THAT REGARD THAT WE'RE REPORTING, SO THINGS CHECKED OUT WELL IN REGARDS TO OUR REVIEW OF THE SEGREGATION OF DUTIES AND ALL OF THAT, HAVING APPROPRIATE MITIGATING CONTROLS IN PLACE WHERE THERE MAY NOT BE, YOU KNOW, THE ABILITY TO HAVE PERFECT SEPARATION. Another area that does get included within the internal control reporting aspect is if during the audit process, if us as the auditors identify any known or likely misstatements as part of the audit just based on how a certain transaction or balance is recorded within the general ledger, We work through that with management and make sure we've got all the facts and circumstances and figure out if indeed there is an adjustment that is necessary. In those cases where it's determined that an adjustment is necessary, we then have to look at how the amount of that adjustment compares to our materiality calculation. for that individual fund, because our opinions we provide are at the individual major fund level and then non-major funds collectively, not to get too far in the weeds. But my point is the materiality amounts that we calculate under as prescribed by the standards can get to be fairly small amounts. The item that we had that surfaced in the grand scheme of things, this is very narrow in nature and really a technical matter. Some things that came into play with timing, just with how certain things were happening prior to year end and after year end, but then also looking kind of closely at how THE TERMS OF THE AGREEMENT ARE STRUCTURED AND SO FORTH. SO THE ARRANGEMENT THAT IS IN PLACE BETWEEN THE CITY AND THE PORT AUTHORITY AS IT PERTAINS TO THE TIF DISTRICT FOR VORTEX WHERE THERE IS THE AGREEMENT FOR THE LAND TIED TO THE LAND WRITE DOWN AND SO FORTH, where then the city will basically pass along the tax increment collections that are considered to be available in future years to the Port Authority to, in essence, make them whole for the write-down on that property or the real estate. THE LIABILITY FOR THOSE FUTURE AMOUNTS TO BE PAID THROUGH TO THE PORT AUTHORITY AND THEN A RELATED EXPENDITURE WERE INITIALLY RECORDED ON THE CITY'S GENERAL LEDGER. BUT AS WE KIND OF DUG INTO THE INFORMATION MORE AND GOT A BETTER SENSE AS TO KIND OF THE EXTENT OF THE CITY'S OBLIGATION AND SO FORTH, AND CERTAINLY THE FULL EXPECTATION IS THAT THAT FULL AMOUNT WILL ULTIMATELY MAKE ITS WAY BACK TO THE PORT AUTHORITY. IT'S JUST WHEN YOU LINE IT TO THE SPECIFIC CHARACTERISTICS UNDER THE ACCOUNTING GUIDANCE, IT DOES NOT, ESPECIALLY FOR THE FUND LEVEL FINANCIAL STATEMENTS, IT DOES NOT MEET THE DEFINITION QUITE YET OF BEING A LIABILITY AND EXPENDITURE BECAUSE OF THE CONTINGENT NATURE OF IT BASED ON THE AVAILABLE TAX INCREMENT REVENUES IN THE FUTURE. Okay, so that's the nature of the adjustment we had. It's unfortunate that it has to get referred to or called out as an item in our internal control report because, as I alluded to, you know, it is not meant to... be indicative of any kind of pervasive internal control concern or anything like that. It's just having to be a transaction that was a significant dollar amount and digging into some of the technicalities and aligning it to the accounting guidance. It kind of led us to that position of having that adjustment. So, okay. All right, on the federal award findings, and I'll mention on that too, certainly not uncommon for municipalities to have that type of finding from time to time. I would say not just the reports we issue as a firm, but reports I look at from other firms, more times than not, there's a finding that surfaces for some type of adjustment to come through. The city's had a very, very great track record, and we fully expect going forward to next year that it'll be back to not having a finding like this. Just from time to time, it's hard to bat 1,000, I guess, is the point I'm making. So things like this will surface here and there.

So, okay.

All right, I mentioned earlier that the federal wards, depending on the level of expenditures, this year the city with some of the PFA funding that's coming through, there's federal funds included with that, even though it's coming through, passed through a state agency. So given the extent of the related expenditures that were incurred tied to that funding, this additional federal ward compliance requirement, our audit requirement kicked in. So we did some deeper dive testing on that piece. Everything checked out well. No findings that we're reporting in that regard. And then the Minnesota Legal Compliance, the state auditor's office, they publish a guide that we have to go through in addition to all of our other audit programs that really focuses on the state statutes that have financial pertinence. Basically, they ask us as the engaged auditors to do spot checks on things like contracting and bidding protocols, conflict of interest checks, requirements, et cetera, making sure deposits have appropriate collateral that's been pledged for them by the state banks and such, there with all that testing, everything checked out well. And then the communications letter that's noted at the bottom, various required communication points in there, all those are very favorable, indicate that we encounter no significant difficulties as part of the audit, no disagreements with management. Anytime we have adjustments, there's always that process of working through and making sure we're aligned as to how it should get reflected and so forth, but I wouldn't classify anything as a difficulty or disagreement, certainly. So, okay. Then the communications letter also includes various graphs showing financial trends. I'll take us through a few of those here tonight, looking first at the general fund, and then we'll also look quickly at the water and sewer utility funds, just given that those are three really the primary operating funds, if you will, for the city. Of course, there's many other funds for capital projects, debt service, et cetera, too, but these are the ones we'll focus on for this purpose. Okay, so for the general fund, here's just showing a trend of the general fund's fund balance position over a five-year period. At the end of 2025, of the total fund balance that is reflected there of about $13 million, roughly $10 million, just north of $10 million of that is in the unassigned category. So that unassigned fund balance is really the – WHAT'S SHOWING WHAT'S TRULY AVAILABLE FOR COVERING KIND OF DAY-TO-DAY OPERATING COSTS. AND AS YOU'RE AWARE, IT'S IMPORTANT FOR LOCAL GOVERNMENTS TO HAVE A HEALTHY FUND BALANCE LEVEL AT THE END OF THE CALENDAR YEAR BECAUSE IT'S HALFWAY THROUGH THE NEXT YEAR BEFORE THAT FIRST LARGE PROPERTY TAX INSTALLMENT COMES THROUGH FROM THE COUNTY BASED ON THE PROPERTY TAX COLLECTIONS THAT HAPPEN IN EARLY APRIL. IT'S USUALLY LATE JUNE, IF NOT THE FIRST DAY OR TWO OF JULY. when that remittance comes to the city. So having plenty of working capital built up to kind of get through that first half of the next year. With that, why is it not advancing here? Oops. Sorry about that. Oh, all right. Okay, so with that, here just shows the trend with the revenues and expenditures. Actually, before I go through this, I was thinking there maybe was another fund balance slide, but I'll just mention quickly, so with regards to the coverage for that unassigned fund balance category, the city's fund balance policy is to have a minimum fund balance coverage of 45% of the next year's budgeted expenditures. That's in line with the guidance from the state that says municipalities should strive for a range of 35 to 50%. They also say no less than five months of expenditure coverage. So where it shook out for the city at the end of 25, based on a 2026 budget for the general fund of about 20.2 million, it's almost exactly at 50% coverage. So very good spot for the city to be at and demonstrates the good financial stewardship that's in place.

Okay?

All right, so then we'll move forward to the revenues and expenditures here. On both revenues, and then we'll see on the expenditures as well, they have increased over the years presented. In total, they've increased about almost exactly 25% each. So moving up at the same clip, in 2025, revenues increase not quite as significantly on the... Yep, this one's fine most of that of course is tied to property taxes and intergovernmental, which is the local government aid if we look at the next slide on the for general fund expenditures for this one here Total eighteen point nine million increase from the prior year is about four percent And continuing to move forward Okay, looking at a budget to actual comparison So here with this one, both on the revenues and the expenditure side, favorable variances that are reflected for revenues, about as close as can be to the overall budget. It comes out to be about two-tenths of 1% positive variance there. A few different offsetting factors. So for the tax revenue line that's shown first there, you can see there's a variance of about $420,000. THAT'S NOT AS MUCH RELATED TO THE PROPERTY TAX PIECE, BUT MORE SO THE FRANCHISE TAXES. THAT CAN BE A BIT MORE UNPREDICTABLE WHEN IT COMES TO THE BUDGETING FOR THAT. SO JUST HOW THAT KIND OF SHOOK OUT DURING THE YEAR REALLY DROVE MOST OF THAT VARIANCE. THEN THE OTHER LINE ITEM IN THE REVENUE SECTION THAT HAD A SIGNIFICANT DIFFERENCE RELATES TO THE MISCELLANEOUS REVENUE, SO A POSITIVE VARIANCE THERE OF ABOUT 337,000. MOST ALL OF THAT DIFFERENCE RELATES TO INVESTMENT EARNINGS, SO THE GENERAL FUNDS ALLOCATION OF THE TOTAL INVESTMENT POOL FOR THE CITY. the amount that was reflected there. The budget for investment earnings across the board for all cities is done in a very conservative way because things can change fairly quickly as it pertains to interest rates and just other market factors that drive those results. So between interest earnings and the mark-to-market fair value adjustments on those investments, that's what really drove that positive variance there of about $336,000, okay? THEN ON THE EXPENDITURE SIDE, THE POSITIVE VARIANCE, THERE WAS ABOUT 2%, ROUGHLY $400,000. MOST OF THAT CAME IN THE CULTURE AND RECREATION LINE ITEM. As you can see there, with that, it was notably tied to personnel costs, and one of the key driving factors there was with the arena being shut down for part of the year for the remodel project, so less personnel costs being incurred during that timeframe. So that was the most notable item to call out there. But all in all, you can see fund balance for the general fund increased by about 400,000 year over year, which is very much in line with the increase in the previous year as well, okay? All right, we can advance the next one here. So then we'll look at the water utility first. So with this one, you can see generating a healthy amount of operating income. We do include both operating income with depreciation and without depreciation. The without depreciation gives you a better sense of the cash flow generation, how much is being generated. coming through that can be put into reserves for covering costs of future infrastructure improvements and so on and so forth without having to incur or limit the extent of debt that's utilized for some of those projects. So you can see there, certainly very good results. For 2025, on the revenue side, the increase there was not as significant as on the expense side. There were some non-capitalizable expenses that came through in 2025. So those go right to the income statement, if you will. those that don't meet the capitalization policy and get depreciated over a number of years. So that's really what drove that change there. Then also, if we may advance to the next slide here. OR THE WATER UTILITY. YOU CAN SEE THIS IS SHOWING BOTH CASH INVESTMENTS AND THE UNRESTRICTED NET POSITION, EACH OF WHICH HAD INCREASES FROM THE PREVIOUS YEAR, JUST WITH THAT OPERATING INCOME GENERATION. AND THEN LOOKING AT 2021, I DID WANT TO JUST POINT OUT AND JUST REMIND FOLKS THAT THE REASON WHY THE CASH BALANCE WAS SHOWING SO HIGH FOR THAT YEAR, THERE WAS DEBT THAT WAS ISSUED LEADING UP TO THE END OF THAT YEAR. SO UNTIL THOSE PROCEEDS ARE SPENT FOR THE RELATED PROJECTS THAT THEY WERE ISSUED FOR, IT DOES CAUSE THAT TEMPORARY BUMP IN THE CASH POSITION FOR THE FUND.

AND THE PROJECT THAT HE WOULD BE REFERRING TO IN THE BOND WOULD BE THE WATER TOWER.

OKAY, THANK YOU. All right, then we'll move to the sewer utility here. So with this one, also operating income in all five years presented, the operating income was up about $1 million compared to the previous year. And much of the, well, it was kind of twofold. On the revenue side, increase of almost half a million dollars tied to mainly rate increases. And then on the expense side, A DECREASE OF ALMOST AROUND HALF A MILLION DOLLARS. AND IT'S KIND OF THE OPPOSITE OR SIMILAR SITUATION BUT JUST FALLING IN DIFFERENT YEARS AS TO THE WATER UTILITY. THERE WERE SOME LARGE NON-CAPITALIZABLE KIND OF REPAIRS, MAINTENANCE COSTS, ET CETERA, THAT HAPPENED IN 2024 THAT BUMPED THE EXPENSES UP THERE AND NOW COMING BACK DOWN AGAIN. So that then leads to the change in the cash position as well as the unrestricted net position for the year. And you can see they're kind of building up now going past the $10 million mark on the unrestricted net position. So that's representing, again, kind of the reserves that are built up to take on those future improvements. Okay. So that is it as far as the information that I wanted to cover with you here this evening. So I know that was pretty quick and there's a lot of information there and then in the reports we issue too. So if anything caught your eye that I didn't touch on, certainly glad to... ELABORATE OR ADDRESS THAT, AND THEN ANY QUESTIONS YOU HAVE, I'M GLAD TO FIELD THOSE, TOO.

COUNSELOR CHRISTIANSEN. THANK YOU, YOUR HONOR. THANK YOU FOR YOUR PRESENTATION. I REALLY APPRECIATE THAT YOU GIVE THE WHYS BEHIND SOME OF THE DIFFERENCES THAT MAKES IT SO MUCH MORE MEANINGFUL AND ASSESSABLE. ONE SLIDE THAT I WAS CONFUSED BY, AND I BET THERE'S AN EASY ANSWER, BUT ON THE GENERAL FUND REVENUES AND EXPENDITURES CHART, WHERE THERE'S A DIFFERENCE EVERY YEAR IN Well, four of the five years, it is continue... I think it's one higher than that.

There it is.

Yeah. What is the difference, and where do we make it up?

Is that... So the revenues... So part of this is... And in 2022, as far as the revenue is exceeding expenditures, there likely was some grant funding coming through or perhaps I'm trying to remember what in 22.

These revenues and expenditures don't include the transfers.

Yeah, the transfers part. But yeah, so that's why you still have an increase in fund balance because there are budgeted transfers coming into the general fund from the different utility, water and sewer for their share of kind of the general administrative costs that all are borne by the general fund.

Okay.

So you've got those inflows coming in that contribute to the fund balance change in the general fund. So that's very common for cities. And then you're right. You do have the one year there, 2022. I would have to look back to get a little bit more details on kind of what happened in that year. But sometimes there can be kind of a one-off revenue source that's non-recurring in nature that makes its way through. Okay.

I do believe that it was part of the COVID money that we got and that we officially then put it into, I'm gonna say this wrong, somehow we put it into the general fund to cover operational expenses as it related to eligible expenses for COVID grants.

COUNCILOR CHRISTIAN. I HAVE ONE FINAL QUESTION. SURE. IS THERE ANYTHING THAT CAME TO YOUR ATTENTION THAT YOU HAVEN'T MENTIONED THAT WE SHOULD BE AWARE OF?

No, there hasn't. We try to be very transparent with the information we communicate to the council. And as far as any particular concerns, things like that, no, there isn't anything else. The folks involved at the city certainly demonstrate to us they take stewardship very seriously and doing the right thing for the right reason for the city. And I'm certainly very impressed with the team that's in place here.

Your Honor? Thank you.

Mr. Herman.

Overall, what is our financial picture? Are we standing good, excellent, fair, not so good?

Yeah, no, the city is in, I'd say, a very healthy financial position. The credit rating, which you would have had one here somewhat recently, I believe a AA plus rating or AA minus rating. But in that regard, in the different metrics that are looked at by the credit rating agencies, the bond rating agencies, certainly from their perspective, also viewing the city to be in a very solid financial position.

City Manager?

Yeah, as to the comment about the bond rating, our bond rating is probably maxed out as what a city can be for both our financial position and our strong MANAGEMENT OF FUNDS. THE ONLY THING THAT COULD MAKE OUR CREDIT RATING IMPROVE BY STANDARD PORES OR MOODY WOULD BE SIGNIFICANT DEMOGRAPHICAL CHANGES WITHIN THE COMMUNITY, WHICH DO NOT JUST, YOU KNOW, EASILY HAPPEN OR NOT 100% WITHIN OUR CONTROL. So without those major demographical changes, we're probably as high as we possibly can within our stewardship efforts financially. Thank you.

Thank you.

Any additional discussion or questions from the council? THANK YOU FOR YOUR TIME TONIGHT.

YES, THANK YOU VERY MUCH. WE APPRECIATE THE OPPORTUNITY AGAIN TO BE OF SERVICE TO THE CITY AND, YEAH, GLAD TO BE HERE TONIGHT TO PRESENT THE RESULTS. THANK YOU. THANK YOU.

ALL RIGHT. ITEM C IS A PUBLIC HEARING AND RESOLUTION ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELBERT LEE. WE'LL OPEN THE PUBLIC HEARING WITH THE STAFF REPORT. CITY MANAGER.

THANK YOU, YOUR HONOR. FIRST MUST CONDUCT PUBLIC HEARING AND AFTER THE HEARING THE COUNCIL CAN VOTE ON THE RESOLUTION. RESOLUTION IS A STANDARD CREATION OF AN EDA. FOR THE PUBLIC, AN EDA IS A SPECIAL DISTRICT THAT CURRENTLY ENCOMPASSES THE CITY OF ALBERT LEE BOUNDARIES, BUT HAS THE POTENTIAL TO BE EXPANDED IN COOPERATION WITH OTHER GOVERNMENTAL AGENCIES. THAT'S ONE OF THE ADVANTAGES OF AN EDA OVER A PORT AUTHORITY. The benefit at this time, though, is the differing level of authority that an EDA has that is greater than an HRA and also then could alleviate some of the potential projects or actions that the Port Authority has since taken on. Following the council meeting, the EDA will convene no sooner than 8 p.m. if the council does a pass. The enabling resolutions and items D and E are also tied to whether or not the enabling resolution is passed. Now, I was asked to make sure to comment on a couple of things as to why we are doing this. First, I'd like to say is that a lot of it has to do with statutory authority within the state of Minnesota. They carve out certain special districts to do certain things, and while there are some overlaps, there are very clearly some limits or some expectations within those particular agencies. As an example, though a HRA can do certain redevelopment aspects, they are typically more focused, and the way the law is written, especially when it comes to bonding practices, at least now, as it relates to HRA, they are very much more focused on low to moderate income housing. Now, many communities that have HRAs then also have EDAs, or just simply have EDAs that they have set to take on HRA authority to do everything within an HRA and also an EDA. So many communities that have HRAs also have EDAs. We are different in that we have an HRA and we have a port authority, and I think we've been running under a general assumption that somewhere an EDA, a proper EDA under state statute had been established. It had not. at least not to any records we could find. The Port Authority and its efforts, well, again, there are certain things it can work on because there's this general term that says, and other buildings or properties, which then could mean, well, that could mean an apartment complex, that could mean a number of different things. but typically when they list the type of projects or authorities that a port authority works on, it's typically more warehousing, industrial, or infrastructures that relates to warehousing and industry in support of, let's say, manufacturing. So we have an HRA that does not have the full capabilities of an EDA, but does have some redevelopment authority under certain circumstances, but has not been used. We have a port authority that has been applying that other building standard as it relates to its assistance in the absence of an EDA. But what we've been missing is that middle portion, which is the actual EDA being properly established and that authority being established. And an example of, again, the differences for the public. Port Authority might build an industrial park, build a warehouse, build an incubator space. HRAs can deal with blight and redevelopment. So let's say if you have a downtown block that, has significant blight, they could use some of their HRA authority to help clean that up, whether that would be commercial or residential. And they have powers to add housing to the community, but again, typically it starts off as low to moderate income housing as the primary focus and funding sources. So in that gap, you have What about very without going through and spending exhaustive time officially labeling an area as blighted, but you might have a shop that needs some assistance with some mild renovations, let's say some exterior work, some facade work, or establishing business loans or some of those other aspects. That's where really an EVA comes in and having that. The city has been stepping up and doing a lot of those without officially establishing an EDA. And under our very broad charter city authority, there are a lot of things we can do, but there's still certain limitations that if having an EDA, THAT THAT WOULD UNLOCK, PRIMARILY WITH ANY PROJECTS THAT WE MAY TAKE ON THAT REQUIRE BONDING. SO THIS IS WHERE BASICALLY THIS IS THE MISSING MIDDLE OF A BROADER ECONOMIC DEVELOPMENT PICTURE THAT I THINK MAYBE WE WERE RUNNING UNDER CERTAIN ASSUMPTIONS. I KNOW I WAS WHEN I FIRST STARTED, THAT IT HAD BEEN ESTABLISHED, BUT I COULD NOT FIND ANY RECORD OF IT OFFICIALLY BEING ESTABLISHED. The goal at this time is to not create a new agency where we're gonna hire more people or anything of that. It's just simply creating that legal pathway to do some of the things that we've already been doing or we need to do, but working with, as a three-prong effort, the HRA, a newly established EDA, which would basically be largely the city, but under proper authorities, and the Port Authority. So that way we can work together on a lot of these projects, because we know all of them go on hand in hand, cleaning up blight, LOW-INCOME HOUSING, WORKFORCE HOUSING, MANUFACTURING, WAREHOUSING, TAKING CARE OF UTILITIES AND INFRASTRUCTURE, ALL OF THAT INTERPLAY WITH EACH OTHER AS IT RELATES TO ECONOMIC GROWTH AND A HEALTHY COMMUNITY AND A VIBRANT ECONOMY. SO THAT IS WHAT WE'RE LOOKING AT HERE.

ALL RIGHT. ANY QUESTIONS FROM THE COUNCIL? CITY MANAGER? COUNCILOR HERMAN.

I HAVE A QUESTION, YOUR HONOR. SO WHERE DOES THE ELITA FIT IN AMONGST THOSE BOARDS?

CITY MANAGER?

ALITA IS THE ALBERT LEE ECONOMIC DEVELOPMENT AGENCY, NOT AUTHORITY. HONESTLY, IT TOOK ME ABOUT A YEAR TO FINALLY REMEMBER THAT THAT'S WHAT IT ACTUALLY MEANS IS AGENCY. AND FOR MANY YEARS, I KEPT SAYING, WELL, I THINK WE GAVE THEM THE AUTHORITY TO BE THE EDA. BUT IN THE TIME OF THE CREATION OF ALITA AND THE SEPARATION OF THE HRA FROM BEING CITY DIRECTLY, I COULD NOT FIND ANYTHING IN THE ESTABLISHMENT RESOLUTIONS THAT SHOWED THAT WE ACTUALLY PROPERLY GAVE THOSE AUTHORITIES TO THEM. AS FOR THE PORT AUTHORITY, THEY DO HAVE A LOT OF WORK IN FRONT OF THEM. WE DO KNOW SOME PROJECTS COMING UP THAT IS GOING TO KEEP THEM QUITE BUSY. AS FOR THE ALITA BOARD, IT'S ACTUALLY MADE UP OF TWO SEPARATE BOARDS. THERE IS THE PORT AUTHORITY BOARD, AND THEN THERE'S THE GREATER JOBS, WHICH IS A NONPROFIT BOARD. AGAIN, SAME PEOPLE, YOU CAN HAVE THE SAME PEOPLE ON BOTH BOARDS, BUT THEY STILL HAVE TO KEEP TWO SEPARATE BOOKS AND HOLD TECHNICALLY TWO SEPARATE MEETINGS. ESSENTIALLY WHAT WE'D BE LOOKING AT TEMPORARILY WITH THE EDA WOULD BE THE SAME THING AS IT RELATES TO THE COUNCIL. THERE WOULD BE THE COUNCIL AND THE CITY, AND THEN THERE WOULD BE THE EDA. And it would function very similar as how greater jobs and the Port Authority act under LITA. Now, not similar as in duties, but similar as in makeup, how they both mirror each other. In the future, down the road, if we so chose to incorporate and consolidate more of these together to create greater unity, accountability, transparency, whatever the reasoning may be, EFFICIENCY EVEN, WE CAN HAVE, AND THAT'S BECAUSE THE MINIMUM REQUIREMENT SET UP FOR WHAT HAS TO BE ON AN HRA BOARD, AN EDA BOARD, AND A PORT AUTHORITY BOARD IS TWO COUNCIL MEMBERS. AND SO WITH THAT, ALL THREE OF THOSE COULD BE TECHNICALLY LAID AT THE SAME BOARD EVEN IF THEY HAVE TO HOLD THREE MEETINGS IN THE SAME DAY BACK TO BACK TO BACK. So there is that ability to do that, but right now, what I like to do is establish one, the authority, and then through that, the potential for a levy, which would be to optimize its authority, but it doesn't mean we have to use it, and then sit down and have all three boards, after everything being officially established, basically divvy up the responsibilities that we know need to be done in the community to really bring forward growth. We need houses. We know that we were in competition of a larger community for something coming up that, quite frankly, we beat them on taxes, we beat them on financing, we beat them on just about everything. but workforce, that was their biggest concern. That was the thing that even despite all of those benefits we could provide, workforce was still a very big issue for them. And could they fill those jobs with people soon enough? And it continues to be an issue for many of our businesses here. But we can't just have workforce arrive without there being housing nearby. So we know we need to work on that, and it all interplays with each other. And so these are the kind of tasks that we need to set up. We need to make sure that our sewer, our wastewater treatment plant stays at capacity, that systems are looped or large enough to be able to handle supplying water. If we have a wet industry come in, what does that mean? So all of these play into each other. And we really need to sit down and sort of divvy up those responsibilities, knowing our limitations and resources financially, resources and time, and also our skill sets with the individuals that make up the staff and the boards. So.

Did that help? That did. Any further discussion by the council? HEARING NONE, OH, LARRY, SIR BAKER.

JUST ONE THING. AS WE GO FORWARD WITH THIS AND WHEN WE COME TO DECIDING THE BOARD, I THINK I WOULD LIKE TO SEE THE BOARD OBVIOUSLY BE PART, THE COUNCIL BE PART OF THE BOARD, BUT I'D ALSO LIKE TO SEE community members that will be appointed to that board too, just for the simple reason that gives them the idea or gives them an inside information as to what really goes on and how we go about doing our development, doing our housing and things like that, and then they can talk to other community members if there's ever questions come up, just to kind of help understand what exactly is going on and how it's performed. All right, City Manager?

Your Honor, I'm sorry, I'd like to comment on that before we open up the public hearing. Many cities actually, while the city staff are the actual ones providing the services under those agencies, such as an HRA report or an EDA or a combination thereof, Many times they do have boards that are not exactly the same as the council. Some do, some don't. And for those very reasons that you stated, sometimes they create those differences for those very reasons. But a lot of times they do combine. Like many times you will see an HRA and EDA as being almost inseparable. Maybe they're separated. I mean, they might be separated in a few reports, maybe even by a few websites here and there, but largely it's a lot of times the same staff under the same city that are joined up. And that's one of the strong connections that is created between the council and these boards that are comprised of the minimum state required council representation plus members from the community.

Okay.

THANK YOU. ALL RIGHT. WITH THAT, FOR THE FIRST TIME, WOULD ANYONE LIKE TO SPEAK REGARDING THE RESOLUTION OF ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELBER LEA. COME ON UP, STATE YOUR NAME.

Good evening, Mayor and the Council. My name is John Cockett. I'm a resident of Ward 2, long-time resident, and I've been here about almost 13 years, and I've just had a few observations of what I've seen as far as building development and the things that have gone on. I'M STANDING HERE TONIGHT TO ADDRESS THE PROPOSAL TO ESTABLISH NEW ECONOMIC DEVELOPMENT AUTHORITY. THE OFFICIAL NOTICE IN THE EMAIL I GOT STATES THAT THIS COUNCIL IS CREATING THIS AGENCY TO FOCUS ON EXPANDING THE LOCAL TAX BASE THROUGH HOUSING, BUSINESS DEVELOPMENT, AND THAT YOU INTEND TO IMMEDIATELY APPOINT YOURSELVES AS ITS SOLE GOVERNING BOARD. Before we concentrate this immense financial and administrative power into a single closed loop, we need to ask some very straightforward questions about what expanding the tax base actually means for the everyday residents of Albert Lee. Right now we are witnessing a visible pattern in our residential neighborhoods and wards where modest generational homes are being acquired through tax forfeiture or code enforcement slated for demolition and replaced with new housing that is significantly more expensive than the surrounding neighborhood. LET'S BE ENTIRELY TRANSPARENT WITH THE PUBLIC TONIGHT. DOES EXPANDING THE TAX BASE MEAN ARTIFICIALLY DRIVING UP PROPERTY VALUES SO THE CITY CAN TAKE A BIGGER CUT? OR IS THE GOAL HERE TO INTENTIONALLY RAISE PROPERTY ASSESSMENTS ON THE HARD WORKING FAMILIES, RETIREES, AND THOSE ON FIXED INCOMES ALREADY LIVING IN THOSE BLOCKS, EFFECTIVELY PRICING LONG-TERM RESIDENTS OUT OF THEIR OWN NEIGHBORHOODS THROUGH RISING TAXES? AT THE SAME TIME THIS IS HAPPENING TO OUR RESIDENTIAL NEIGHBORHOODS, WE ARE SEEING A COMPLETELY DIFFERENT STANDARD APPLIED TO HIGH-VALUE COMMERCIAL ASSETS DOWNTOWN. WE WATCHED MULTI-MILLION-DOLLAR STRUCTURAL ASSETS BE FUNNELED THROUGH PUBLIC CUSTODY, STABILIZED AND PREPPED USING PUBLIC RESOURCES, AND THEN AWARDED TO PREFERRED PRIVATE INVESTORS AND FAMILY INSIDERS FOR A SINGLE DOLLAR UNDER THE GUISE OF REDEVELOPMENT. LET US LOOK AT THE ULTIMATE ROAD MAP MENTIONED AT THE LAST MEETING. of the eventual dismantling of our Port Authority and the HRA altogether. Phasing out those distinct bodies in favor of a single monolithic EDA doesn't just streamline paperwork, it completely dissolves our system of local checks and balances. It replaces independent citizen commissioners with a single political board that controls every piece of public land in Albert Lee, industrial, commercial, and residential. SO WE HAVE TWO SYSTEMS OPERATING ONCE. ON THE ONE HAND, EVERYDAY RESIDENTS FACE AGGRESSIVE CODE ENFORCEMENT, TAX FORFEITURES, AND THE THREAT OF RISING NEIGHBORHOOD ASSESSMENTS. ON THE OTHER HAND, A SELECT CIRCLE OF PREFERRED DEVELOPERS RECEIVES DEEP PUBLIC SUBSIDIES, PUBLIC LAND FOR A DOLLAR, AND ELIMINATION OF INDEPENDENT CITIZEN OVERSIGHT. Meanwhile, the basic administrative duties like ensuring our special events permits are legally compliant and not exposing taxpayers to federal copyright lawsuits languishes. True economic development should protect the community's wealth, not displace it. Before we centralize more development authority behind closed doors tonight, let us first commit to protecting our historic neighborhoods, ensuring fair assessments, and running transparent administrative house. Thank you.

Thank you. For the second time, would anyone else like to speak? Please state your name.

Lucas Schuster, Your Honor. Just like to say thank you for all of your efforts in cleaning up what seems to be an administrative oversight in the past. The agency and authority, all the acronyms, thank you for doing that. In that line of thinking, FOR THE PUBLIC'S BENEFIT, IT MIGHT BE GREAT FOR A BREAKDOWN OR SOME SORT OF INFOGRAPHIC TO SEE HOW DOES THIS ALL WORK TOGETHER. SORRY. AND IN THAT REGARD, I THINK MAYOR MURRAY, YOURSELF, AND PROBABLY MR. RIGGS AND THE COUNCIL HAVE DONE A FANTASTIC JOB IN COORDINATING A BETTER PRESENTATION OF WHAT THE CITY HAS BEEN DOING OVER THE LAST SEVERAL YEARS. SO THANK YOU FOR THAT.

THANK YOU. ALL RIGHT, FOR THE THIRD TIME, WOULD ANYONE ELSE LIKE TO SPEAK? HEARING NONE, WE'LL CLOSE THE PUBLIC HEARING. I WOULD ENTERTAIN A RESOLUTION ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ALBERT LEA. COUNCIL?

SO MOVED.

MOTION BY COUNCILOR CHRISTIANSEN. IS THERE A SECOND?

NO SECOND, CHAIRMAN.

SECOND BY COUNCILOR ANDERSON. ANY FURTHER DISCUSSION? ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. OPPOSED, NO. MOTION CARRIES. ALL RIGHT, ITEM D IS THE APPOINTMENT OF THE ECONOMIC DEVELOPMENT AUTHORITY BOARD MEMBERS, RICH MURRAY, RACHEL CHRISTIANSEN, LARRY BAKER, TED HERMAN, REED OLSON, KEITH VAN BEEK, AND BRIAN ANDERSON. COUNCIL, DO YOU NEED TO COMMENT ON THAT? Go ahead, city manager, full take.

Basically, council will need to, at least for the moment, appoint themselves the EDA officially. Typically, the mayor makes the appointment announcements, and it would be best to have the council motion to second and approve these members. For the public and for the record, what we have listed is Ward 4, Councilmember Reed Olsen would serve and expires. These all expire December 31st in order to keep them consistent with all other boards. December 31st of 2026, Ward 5, Keith Van Beek expires in 27. Ward 6, Brian Anderson expires in 28. Ward 1, Rachel Christensen expires in 29. Ward 2, Larry Baker expires in 2030. Ward 3, Ted Herman expires in 2032. Excuse me. I want to double-check that. No, this is correct. Excuse me. And then Ward... And then... Mayor Rich Murray expires in 2032. We have to set him up where it's a it's one, two, three, four, I believe six or one, two, three, four, five, six separation. And so every year there would be someone appointed. I don't expect this to stay this way because I think that there is a strong desire to eventually have the EDA mimic something very similar to what the Port Authority or the AHRA is. However, given the roadmap that a lot of other communities have, many of these boards are one and the same. So we do have to have these discussions with those boards as to what they may look like in the future as well as Again, as I had said earlier, what are the authorities going to be? So while I cannot say this is an interim board legally, I think we all generally have an understanding that this is not the intended permanent makeup of how this board will be. And at such point, once we have that understanding and trying to find a way to make sure that we have better connection at transparency and accountability between all three, we would then potentially be looking at changing the very nature and makeup of the board, either through general expirations and then appointing new or just a full rewrite because you do have the authority once someone is on to also then change and remove in the future. So this is not meant to be forever. What we will need to do, though, in the EDA meeting that is required by law is that we must appoint a president, a vice president, a treasurer, a assistant treasurer, and a secretary. That is something that in order to conduct the meeting following this meeting, we will need to make sure that those appointments are made at the time of the meeting at the start of it. And we will need a board officially appointed in order to call a meeting in the first place.

All right, council.

MOVE TO APPROVE, YOUR HONOR.

COUNCILOR CHRISTIANSON, IS THERE A SECOND?

I'LL SECOND, YOUR HONOR.

SECOND BY COUNCILOR HERMAN. ANY FURTHER DISCUSSION BY THE COUNCIL? YEAH, REAL QUICK. COUNCILOR ANDERSON.

I THINK THAT JOEL SAID SOMETHING EARLIER, AND WE WERE TALKING ABOUT THIS A LOT AT THE WORK SESSION. I THINK IT'S WORTH SHARING WITH THE PUBLIC ABOUT HOW THE EDA ISN'T GOING TO DO ANYTHING THAT THE CITY'S NOT ALREADY DOING. IT'S JUST STATUTARILY IT MAKES IT EASIER TO DO IT. IS THAT A CORRECT DESCRIPTION OF OUR DISCUSSION EARLIER?

CITY ATTORNEY. I THINK YOU'RE LEGITIMIZING WHAT YOU'RE ALREADY DOING. by creating a format that ties directly the statute with responsibilities and authority that you presume that you've had on an ongoing basis. I also believe that this process here as outlined is going to create greater accountability to the public for the actions that these activities actually are involved.

All right, any additional discussion? Hearing none, all in favor of the motion, signify by saying aye. Aye. Opposed, no. Motion carries. Item E is adoption of bylaws of the Economic Development Authority of the City of Belverde. City Manager.

Thank you, Your Honor. These bylaws are basic and were provided by our TIF bonding attorney, who has helped us on a number of questions related to economic development and the use of an EDA. The official seal is not attached at this time to the bylaws, but will be approved at a later date by the Board and approved by City Council. Staff recommends approval.

Council? Move to approve, Your Honor.

Motion by Councilor Baker. Is there a second?

I'll second, Your Honor.

Second by Councilor Herman. Any further discussion? Hearing none, all in favor of the motion signify by saying aye. Aye. Opposed, no. Motion carries. Item F is a resolution accepting donations as presented to the City of Albert Lee. City Manager?

Thank you, Your Honor. The City of Albert Lee is generally authorized to accept donations pursuant to Minnesota State Statutes 465.03 for the benefit of its citizens. Staff recommends acceptance of the following donations as submitted for council review and approval. DAF Giving 360. This is the Murray Family Charitable Fund in honor of Adam Murray. $18,903 to Shoreland Heights Playground Equipment, and $5,000 to the Senior Center Design.

Council? Move to approve, Your Honor. Motion by Councilor Bakers, or second? Second, Your Honor. Second by Councilor Anderson. Any further discussion? Councilor Christensen.

THANK YOU, YOUR HONOR. I WANT TO THANK THE MURRAY FAMILY FOR THIS GENEROUS DONATION. I ALSO WANT TO THANK ALL THE OTHER BUSINESSES AND INDIVIDUALS WHO HAVE CONTRIBUTED THEIR SKILLS AND ABILITIES AND FINANCIAL GIFTS TO OUR CITY TO HELP MAKE IT BETTER. THANK YOU.

THANK YOU. ALL RIGHT. NO FURTHER DISCUSSION. ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. OPPOSED, NO. MOTION CARRIES. ITEM NINE IS MAYOR AND COUNCIL REPORTS, AND WE'LL START DOWN WITH WARD THREE. COUNCILOR HERMAN.

THANK YOU, YOUR HONOR. LET ME START OUT WITH GETTING MY PAPERWORK UP HERE. I HAD SEVERAL GRASS COMPLAINTS. I WORKED WITH OUR LOCAL CSO OFFICERS ON THAT. And I've had a couple parking complaints on Jansen and First Avenue. I reached out to our city engineer and our police department. They're working on it. And I also volunteered at Eddie Cochran, this last event they had here, as a judge. And I also helped park the show cars. It was a great day. Today I attended the junior PGA tournament in Albert Lee at Greenlee Golf Course. I also dealt with a couple other incidents that had reached out to the proper city workers to take care of it. That was it, Your Honor.

All right, thank you. Ward two, Councilor Baker. Thank you, Your Honor. As far as ward items, I have a couple adjunct issues that I will get the addresses and stuff to the city manager so he can look into that and have that taken care of. Other than that, I was up at Eddie Cochran on Friday night and just kinda hung around just to see some of the cars and stuff come on there. And unfortunately, I was out of town Saturday, so I wasn't able to attend, but from what I understand, it was one heck of a, one heck of a show, so again, I kind of wish I would have been here. But anyway, I don't have any more award items. I do have an HRA meeting tomorrow, and I will report on that next meeting as to what we talked about. Thank you, Your Honor.

WARD ONE, COUNSELOR CHRISTIANSON.

WELL, THANK YOU, YOUR HONOR. I'VE GOT NO WARD ITEMS TO TALK ABOUT. I DO WANT, I DO HAVE QUITE A BIT TO TALK ABOUT, HOWEVER. AFTER OUR VOTE LAST MEETING ON THE ANIMAL ORDINANCE, I WAS ASKED WHY I HAD VOTED YES WHEN ALL ALONG I HAD BEEN KIND OF RESISTANT TO IT AND VOTED NAY THE FIRST TIME. And I think it's a fair question. I believe that the newly approved ordinance has some benefits and it also has some problems. I knew the votes were there to approve the ordinance and while my continued nay vote could have been part of the record, I'd rather move forward and work to improve with what we have established now. I commit to work with all the parties who are active in animal advocacy, such as the Humane Society, Camp Companion, our many local dedicated volunteers and law enforcement to monitor situations and things that are problems. And then we will propose amendments to the ordinance as our experience shows areas that need to be addressed. And while we're speaking of animals, this Friday, starting at 7 a.m. until 6 p.m., the Humane Society is going to be having their annual fundraiser. They're going to be on the safe corners of Broadway and Clark where there's four-way stops, AND COLLECTING THERE, AS WELL AS IN THE NORTH LOT. THEY'VE GOT FOOD TRUCKS STARTING, WELL, COFFEE STARTING AT 7. THEY'VE GOT THE CUPCAKE PERSON, THE ICE CREAM COOKIES. THEY'VE GOT ALL KINDS OF FOOD TRUCKS AND A LOT OF FUN PEOPLE. SO PLEASE, PLEASE DO COME BY AND MAKE A DONATION. THE FIRST $1,000 DONATED IS GOING TO BE MATCHED A DOLLAR for every dollar donated. And I have heard that the second $1,000 is gonna be matched $1.50 for every dollar that's contributed. So hopefully we get to that first $1,000 real early so we get into that 1.5 to one match as well. So the Blue Zones Project, as we now all know, the exciting news is that Dan Buettner is gonna be here. Dan and Ellen Kerr will be our grand marshals for the parade. So 2026 marks our 10th year since Albert Lee was first certified as a Blue Zone city. And there's people all around the world, honestly, all around the world that know about Albert Lee because we were selected to be the test case for the Blue Zones Project. And specifically, can changing the environment lead to better health and wellness outcomes? Well, since then we've completed the walking path around Fountain Lake. We've got bike trails, bike lanes, completed streetscape in downtown. We've held purpose workshops and community building dinners. Many businesses participate in ways to make the work environment healthier for both physically and mentally. And under Kathy Malachowski's leadership, there's a lot of projects and initiatives that are underway that are improving outcomes for people in Albert Lee and Freeborn County. And one of the things I'm really proud of is that Albert Lee is showing the Blue Zones organization and all the cities that have become certified and those that are looking at it that we, Albert Lee, we have staying power and we're continuing to work and to INVEST IN OUR COMMUNITY USING THESE POWER PRINCIPLES. AND IT IS MAKING A DIFFERENCE. SO PLEASE COME OUT TO THE PARADE AND WELCOME DAN BEUTNER AND THANK ELLEN KERR. and celebrate with us. And while we're speaking of celebrations, Albert Lee has definitely been having a lot of great celebrations lately. This past weekend we celebrated Juneteenth, Pride, and the Faith and Family Festival. The week before we had the Wind Down Wednesday, Thursday on Fountain, and the Eddie Cochran Festival. There are so many organizers and people to thank, but I want to thank the people of Albert Lee You work hard to make this a beautiful and welcoming community. You showed up and participated. And as the cars toured Albert Lee during the cruise, many people were seeing our town for the first time. The community lined the parade route and made the event so much more fun. So I thank you and I'm wishing you all a safe and fun celebration of America's 250. Thank you, Your Honor. All right, thank you. Board six, Councilor Anderson.

Your Honor, at the wind-down Wednesday, I was in the dunk tank. I had a shift right after the Honorable Mayor Murray. I don't know who raised more money for the United Way, which one of us, but we both seemed to get wet plenty of times over and over again, so that was fun. I had an hour before I had to run off to work. I stopped by the Pride Festival. It seemed like that was very active. There was a lot of stuff going on. I have no ward items, and I'm looking forward to our HRA meeting tomorrow night. Your Honor.

Ward 5, Councilor Van Beek.

THANK YOU, YOUR HONOR. AT THIS TIME, THERE ARE NO AWARD ITEMS. I ALSO WAS A JUDGE AT THE EDDIE COCHRAN FESTIVAL, THE MOTORCYCLE END OF IT, AND WHAT A GREAT EXPERIENCE. JUST WALKING AROUND, SEEING ALL THE PEOPLE SO HAPPY AND ENJOYING THEMSELVES TOGETHER WAS TRULY UPLIFTING. THIS PAST SATURDAY, THERE WAS AN EVENT CALLED THE RIDE FOR HEROES. They've literally raised $2,800 in one day with a motorcycle event out in Clarks Grove. And all those dollars will go directly to veterans in the community. There is 100% of those funds raised go to our veterans. And that's all I got. All right, word four, Councilor Olson.

Yep, a couple of things that I had, touch base with the city manager for the meeting, got a couple of property questions kind of answered for me that I can probably relay to some people. I WOULD LIKE TO THANK THE OFFICER THAT CAME OUT AND MET WITH ME AND A HOMEOWNER AS WE WERE LOOKING AT A COUPLE OF SUSPICIOUS LOOKING WEEDS ALONG THE FENCE LINE. HE CAME OUT AND GAVE US A NEGATIVE ON THE PLANT THAT WE THOUGHT IT WAS, SO WE GOT IT CUT DOWN AND GOT IT TAKEN ALL THE WAY. AND EVERYBODY WAS HAPPY ABOUT THAT. THAT'S IT, YOUR HONOR.

ALL RIGHT, THANK YOU. NEXT IS THE MAYOR'S REPORT. AND I HAD A VERY ACTIVE COUPLE WEEKS. STARTED OUT ON JUNE 9TH WITH THE CHAMBER LEADERSHIP GROUP GRADUATION OUT AT WEDGEWOOD. A GOOD GROUP OF YOUNG PEOPLE THERE THAT TOOK PART IN THAT. THEN THE WIND DOWN WEDNESDAY AND THE DUNK TANK, AS COUNCILOR ANDERSON MENTIONED. AND WE SPENT A LOT OF TIME IN THE WATER. SO THOSE KIDS WERE HAVING A GOOD TIME. I THEN RAN OUT TO THE FLAGS AT THE FAIRGROUNDS THAT WERE PUT UP BY THE PATRIOTS FOR JESUS. And if you've looked at those flags that are flying along a bridge now, along the fairgrounds there, that just looks magnificent. So thank you to that group for putting those up. And then I met with the Blue Zones, Kathy, and she brought in a person from Galveston, Texas, that is looking at Blue Zones. And so I met with him and her on June 11th. And then also on June 11th, I went over to CEMCAC. They had their 60th celebration. AND SO A GOOD GROUP OF PEOPLE SHOWING UP THERE, AND THEY'VE DONE A LOT OF GREAT THINGS FOR THIS COMMUNITY. THURSDAY'S ON FOULTON WAS ON ALSO THAT DAY. AND THEN WEDNESDAY, THURSDAY, FRIDAY, SATURDAY, WE JUST HAD A BUSY, BUSY TIME. WIND DOWN WEDNESDAY WAS FANTASTIC. PEOPLE HAD A GREAT TIME OUT THERE. AND THEN THE EDDIE COCHRAN SHOW STARTING THURSDAY AND RUNNING THROUGH SUNDAY. AND THE NUMBER OF PEOPLE THAT WERE OUT IN THE COMMUNITY WAS JUST FANTASTIC. THERE WERE 360 SOME CARS, I BELIEVE, PARKED DOWNTOWN. ANOTHER 100 CARS THAT COULDN'T EVEN GET INTO THE SHOW BECAUSE IT WAS ALL FILLED UP. SO THEY'RE GOING TO HAVE TO LOOK AT SOME EXPANSION NEXT YEAR IF THEY'RE GOING TO HAVE ALL THOSE BACK. A LOT OF GREAT COMMENTS FROM A LOT OF PEOPLE. I SPENT A COUPLE DAYS THERE JUST WALKING AROUND TALKING TO DIFFERENT PEOPLE THAT I DID NOT KNOW, AND THEY WERE FROM ALL OVER THE PLACE. WE HAD PEOPLE FROM CLEAR LAKE AND MASON CITY AND DES MOINES, SOUTH DAKOTA, ROCHESTER, THE TWIN CITIES, SEVERAL GROUPS FROM THE TWIN CITIES LOVED ELBERT LEE. SO WHAT A GREAT SHOW WE HAD FOR THEM. PEOPLE WERE VERY HAPPY TO BE HERE, AND THE MAJORITY OF THEM SAID, WE'LL BE BACK. So that was very nice. So thanks to John Shipper and his wife, Danielle. They did a great job in putting all that together. Had a LIDA update on the 12th of June. And then on the 15th, Monday, I was asked to come out and help with the Family Y Youth Golf Outing. AND SO I DID NOT GO OUT AND GOLF, SO NOBODY WAS IN DANGER, BUT I DID GO OUT AND HELP ON ONE OF THE GREENS WITH ONE OF THE GAMES FOR A COUPLE HOURS. SO THAT WAS VERY WELL ATTENDED, AND WE HAD A GOOD TIME OUT THERE. AND THEN TUESDAY, WE JUST SEEMED TO KEEP DRAWING MORE AND MORE PEOPLE. I GOT TO GO OUT TO THE FAIRGROUNDS ON TUESDAY, AND THERE WAS A GROUP OF 250 TO 300 NON-MOTORIZED BICYCLISTS OUT THERE. AND SO, KLOBUCHAR, WHO WAS A COLUMNIST FOR THE MINNEAPOLIS TRIBUNE MANY YEARS AGO, STARTED THIS 50 YEARS AGO. I THINK HE HAS A FAMOUS DAUGHTER NOW, TOO. YEAH, OUR SENATOR. ANYWAY, HE STARTED THIS, AND NOW THEY COME OUT AND THEY GO TO A COUPLE OF TOWNS EVERY YEAR. SO THIS YEAR THEY STARTED IN MANKATO, THEN THEY CAME TO ALBERT LEE, AND THEN THEY WERE GOING UP TO FARIBAULT FROM HERE. BUT A LOT OF GREAT COMMENTS ON OUR COMMUNITY AGAIN. ENJOYED SOME OF THE RESTAURANTS, ENJOYED THE BIKING AROUND THE COMMUNITY, THE BEAUTY, THE TRAILS, ICE CREAM, DIFFERENT THINGS OF THAT NATURE. SO THE GROUP HAD A GOOD TIME. AND THAT WAS ABOUT 250 TO 300 RIDERS THAT WERE IN TOWN FOR TWO OR THREE DAYS THERE. SO GREAT TO SEE THEM HERE ALSO. AND THEN GOT TO TAKE PART IN THE PORT AUTHORITY MEETING. WE'RE WORKING ON SELECTING FINALISTS. THIS IS OUR SECOND TIME THROUGH THIS PROCESS. WE DID THIS ONE ROUND A COUPLE MONTHS AGO. I BELIEVE IT WAS IN MARCH WHEN WE WENT THROUGH. A LOT OF PEOPLE FOUND JOBS OR DROPPED OUT OF THE RUNNING, BUT WE GOT DOWN TO THREE PEOPLE THAT WE INTERVIEWED, AND THEN WE MADE AN OFFER, AND THAT PERSON TURNED US DOWN, DECIDED TO STAY IN THE JOB THAT SHE WAS IN ALREADY. SO THEN WE STARTED THE PROCESS UP AGAIN. WE'VE NOW, WE HAD 16 APPLICANTS, I BELIEVE. WE PICKED EIGHT OF THEM THAT WE WANTED TO GET MORE INFORMATION ON, AND NOW WE'VE PICKED FOUR THAT WE ARE GOING TO INTERVIEW. THOSE INTERVIEWS ARE, I BELIEVE, IN TWO WEEKS. SO STILL WORKING ON THAT PROCESS. AND THEN ON JUNE 18TH, I ATTENDED THE AMERICAN LEGION PATRIOTS GROUP, AND I WAS A SPEAKER FOR THAT MEETING THAT NIGHT. AND THAT'S ABOUT 70 PEOPLE THAT HAVE JUST GOTTEN TOGETHER TO SUPPORT OUR VETERANS, SUPPORT OUR LEGION, AND TO HELP OUT WITH DIFFERENT THINGS LIKE THAT. SO A GREAT GROUP OF PEOPLE THAT HELP OUT IN THE COMMUNITY. FRIDAY NIGHT, I ATTENDED THE JUNETEENTH OUT AT EDGEWATER BAY. And I'd just like to mention, it was probably the biggest one I've been to. It was a good group of people out there. Dave Peace from Lake Mills was the emcee of the event. But he presented two young men there that we got to know a little bit that night, Rashi Dildi. He's come to town, and he's a barber. And he's looking at starting a barber school in Elbert League. SO I KNOW THAT HE'S WORKING WITH THE PORT AUTHORITY OR GREATER JOBS ON GETTING THAT UP AND RUNNING. AND THEN ALSO A YOUNG MAN NAMED QUINTON AMOS WHO HAS A JOB IN TOWN, BUT HE ALSO OPENED A SHOP IN TOWN, MINNESOTA FRESH. AND SO IF YOU GET A CHANCE, GET OUT AND TAKE IN THESE TWO GUYS AND HELP THEM OUT WITH THEIR BUSINESSES. AND THEN ON SATURDAY, THIS PAST SATURDAY, A BUSY DAY, I WENT UP AND WATCHED THE MOTORCYCLISTS TAKE OFF FOR THE HEROES RIDE. AND I THINK THERE WAS ABOUT 90 BIKES UP THERE. THERE WAS QUITE A FEW. AND SO THAT WAS GOOD TO SEE. AND THEN WE HAD THE PRIDE EVENT, AND THEN ALSO THE FAITH AND FAMILY FESTIVAL HERE IN ELBERLY. SO A BUSY, BUSY DAY. FOOD TRUCKS WERE DOING WELL UPTOWN, AND I THINK A LOT OF PEOPLE WERE HAVING A GOOD TIME. IT WAS A NICE DAY TO BE OUT AND ABOUT. SO THAT WAS KIND OF THE ACTIVITIES THAT I HAD FOR THE LAST COUPLE OF WEEKS, AND THEN JUST A FEW THINGS GOING ON OVER THE NEXT WEEK. THURSDAYS ON FALTON THIS WEEK WILL FEATURE MATT HANNAH. HE DOES A COLLECTION OF FOLK AMERICANA, SHARING ACOUSTIC SONGS AND STORYTELLING. And then after Thursday's on Fountain, you can enjoy the Bayside Ski Show at Edgewater Bay at 7 p.m. On Friday, June 26th, Councilor Christensen mentioned the Humane Society of Freeborn County will be hosting a drive-in and donate fundraiser from 7 a.m. to 6 p.m. And again, like she said, the first $1,000 and then the second $1,000. There's some matching dollars going forward there, so please get out and take part in that. The July Jamboree starts on Thursday, July 2nd, and continues through Sunday, July 5th. There are events and activities each day, and these can be found on the community calendar on the CBB website and the City of Albert Lee website. Some key points are the 3rd of July parade that starts at 6 p.m., leaving from the fairgrounds, ending at Central Park, Dan Buettner, AND ELLEN KERR WILL BE THE GRAND MARSHALLS OF THE PARADE. THE PARADE THEME IS RED, WHITE, AND BLUE ZONES IN HONOR OF THE ELBERT LEE'S 10TH ANNIVERSARY OF THE BLUE ZONES. FIREWORKS FRIDAY, JULY 4TH AT 10 P.M. WILL BE SHOT OFF BETWEEN ELBERT LEE AND FOUNTAIN LAKE, SAME AS LAST YEAR. AND THEN ENJOY THE 4TH OF JULY ACTIVITIES IN CELEBRATION OF OUR COUNTRY'S 250TH BIRTHDAY. AND THEN IN OBSERVANCE OF JULY 4TH, CITY OFFICES, THE RECREATION OFFICE, PUBLIC LIBRARY WILL BE CLOSED ON FRIDAY, JULY 3rd. I THINK, WAS THERE A TYPO IN THERE? OKAY, I THINK THAT'S ALL RIGHT. OKAY, THAT'S ALL I HAVE. CITY MANAGER, YOUR REPORT.

THANK YOU, YOUR HONOR. To anyone that says there's nothing to do in Albert Lee, I would listen in. READ MY NOTES HERE. OKAY. WE JUST, IN THE LAST TWO WEEKS, WE HAD TWO MODULAR HOMES SET AT 409 CLARK STREET WEST AND 915 AUTUMN. THESE ARE INTENDED TO BE SOLD AND AS PART OF OUR REDEVELOPMENT EFFORTS. ARE STARTING OUR BUDGET PROCESS AND ALL BUDGETS ARE DUE FROM STAFF TO THE FINANCE DIRECTOR AND ENTERED INTO OUR SOFTWARE BY JUNE 26TH. SO THIS FRIDAY. I ATTENDED THE WIND-DOWN WEDNESDAY. I TOO WAS IN THE DUNK TANK RIGHT AFTER COUNCILMEMBER ANDERSON. AND I THINK THAT I HAVE A UNIQUE DISTINCTION IN ONE, I TRIED TO SINK SOMEONE ELSE, AND IN FOUR THROWS I MISSED EVERY SINGLE TIME, TO THEN HAVE MY FRIEND WHO'S BLIND THROW ONE PITCH AND SINK ME. So I don't know if that's, you know, I should be embarrassed or feel distinguished in such an honor. But it was a great event, which the dunk tank was brought on, was put together by the Human Rights Commission, just so that way people can be familiar with the committee and their objectives. I, too, also attended a number of the events. In particular, I was out on Friday for Eddie Cochran and the band Bombshell was playing. And I was going around the cars. I was a little disappointed. I felt a little cheated because one of the guitarists started playing the intro to Slayer's Raining Blood. BUT THEN THEY WENT INTO BLACK VELVET. AND I JUST, I WAS, MY HOPES WERE PICKED FOR JUST A MOMENT THAT WE WERE GOING TO HEAR SOME 80s THRASH METAL. BUT WAS SADLY DENIED. AND THEN LASTLY, I DID ATTEND A LIONS CLUB MEETING AND GAVE A STATE OF THE CITY. AND BASICALLY I THINK, AGAIN, I TALKED A LOT ABOUT THE EFFORTS THAT WE'RE DOING FOR ECONOMIC DEVELOPMENT. I THINK WHEN PEOPLE ACTUALLY TAKE THE TIME TO LISTEN TO WHAT'S ACTUALLY GOING ON, UNDERSTAND THE PROCESS, THEY WOULD REALIZE THAT IT TAKES A LOT OF EFFORT, AND WHAT THEY DON'T SEE IS THEY DON'T SEE ALL THE TIMES THAT WE'RE AT BAT TRYING TO HIT THAT HOME RUN OR THAT BASE HIT, AND IT JUST, AND IT DOESN'T, IT DOESN'T HAPPEN. WE HAVE ON A NUMBER OF OCCASIONS BEEN THE FINAL SITE LOCATION for the state, but then get beat out by another state for one reason or another. So we are actively, we do not turn anyone down, we are actively working, but I think, again, and we've talked about this, our biggest effort that we can put forward to making sure that we are as attractive and competitive as possible is finding some solution to housing and workforce. So from the presentation earlier about THE SCHOLARSHIP TO WHAT WE HOPE TO DO WITH HOUSING DOWN THE ROAD. THAT IS ALL VERY IMPORTANT, YOUR HONOR. THANK YOU.

WE MUST HAVE A DIFFERENT LOOK AT MUSIC HERE BECAUSE I DIDN'T UNDERSTAND ONE WORD HE SAID ABOUT THAT. ALL RIGHT, WITH THAT, WE'LL MOVE ALONG TO ITEM 11, APPROVAL OF CLAIMS. A IS A RESOLUTION IMPROVING CLAIMS. ONE IS A PRESENTATION OF CLAIMS OVER 25,000. CITY MANAGER?

THANK YOU, YOUR HONOR. WE HAVE $30,836.43 TO HOME SERVE USA CORP. $33,865.44 TO WOLFRIEND CHEVROLET. $36,766.20 to Platinum Plumbing Solutions. $37,710 to Midwest Enterprise of Albert Lee. $39,069.13 to Freeborn Meyer Electric Cooperative. $44,497.36 to Wolfram Chevrolet. $51,782.41 to Platinum Plumbing Solutions. $65,702.40 to in-built LLC. $68,831.14 to BCM Construction. $74,426 to Solar Connection. $75,376.30 to Bolton Mink. $76,615 to Dry Air Painting. $80,740 to Solar Connection. $99,196 to League of Minnesota Cities Insurance. $111,620.38 to Ulin Brothers Incorporated. $143,192.65 to H&M Underground Solutions. $145,322.64 to BCM Construction. $153,296.96 to Jensen Excavating. $164,533 to Monroe Towmaster. $248,056.98 to Jensen Excavating and Trucking.

Council? Move to approve, Your Honor. Motion by Councilor Baker. Is there a second? I'll second, Your Honor. Second by Councilor Van Beek. Any further discussion?

I just have one comment, Your Honor. Councilor Van Beek. It's great to see so many local businesses up on that board. All right.

Thank you. Good point. ALL RIGHT, ANY FURTHER DISCUSSION? ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. OPPOSED, NO. MOTION CARRIES. IS THERE A MOTION TO ADJOURN?

SO MOVED.

MOTION BY COUNCILOR CHRISTIANSON. IS THERE A SECOND? SECOND. SECOND BY COUNCILOR ANDERSON. ALL IN FAVOR OF THE MOTION, SIGNIFY BY SAYING AYE. AYE. MEETING ADJOURNED.