Craig Clark

The board meeting, which also incorporated an agenda for a future meeting, focused on several operational and strategic items. Key discussions included the election of officers, approval of a change order request for the BEEP Grant related to structural repairs at 117 1st Ave NW (Sync Health property), and a review of Downtown Easement Sign Committee processes, including the specific request for a Sync Health sign. The board also discussed Comprehensive Plan updates, strategic roadmap progress, and property matters such as the Walker Building alternatives and I-90 Business Park environmental assessments. Furthermore, there was discussion regarding the waiver of restrictions on the former Younkers building lease to Goodwill Industries Inc. to address concerns about tax-exempt status.

The meeting commenced with the pledge of allegiance and a roll call confirming a quorum. Key agenda items included the adoption of the agenda, with items 17 and 18 being removed, and the approval of minutes from a December 1st, 2025, truth and taxation hearing. The council welcomed the new finance director, Emily Burns. Discussions involved approving the 2026 tax levy and the 2026 budget, which totaled $51,571,292. A resolution was passed to cancel certain ad valorem tax levies related to a 2015 bond. The council designated the Austin Daily Herald as the official newspaper for 2026 and granted renewals for various 2026 liquor licenses. Significant technical discussions covered approving Change Order Number 10 for the wastewater treatment plant project, which resulted in a net cost decrease to the domestic budget but an increase to the industrial budget. Furthermore, resolutions were passed approving ICM agreements with International Paper and Hormal Annex for wastewater regulation, and approving a one-year extension to the wastewater treatment plant project, involving associated cost offsets and credits. Finally, the council approved a Memorandum of Agreement with LLS for 2026 health insurance and granted the planning and zoning department authority to contract for the removal of junk and legally stored vehicles at two specified properties.

The session involved a detailed discussion regarding the Parks, Recreation, and Forestry department's operations and budget requests. Key topics included utilizing Packer Arena more efficiently, increasing fees for Park and Recreation activities, and addressing the need for playground replacements due to age and lack of compliant parts. The department identified twenty-one capital items totaling $2.1 million and requested two new positions: a Forestry Coordinator and an Assistant Parks Supervisor/Park Lead. Discussions also covered the impact of losing AmeriCorps support, potential fee increases for pavilion and sports field rentals, the cost of security cameras, and improvements to flower watering methods. Furthermore, the Council addressed the maintenance agreement for ballfields at Riverland Community College, proposed rental rate increases for ice time and private use, and reviewed efforts to assess and avoid duplicating community programs. Alternative management for the pool, potential park closures or sales for undeveloped land, and the necessity of maintaining two arenas were also raised as points for future consideration. There was also an inquiry into the status of cane ball court funding and utilizing the pickleball court funding model for other sports.

The primary discussion centered on the overnight shelter proposal, which was a carryover from a previous session. Stakeholders presented information regarding the need for such a facility, citing the difficulty in securing affordable housing and the effectiveness of shelters in other municipalities like Winona. Concerns were raised regarding security, long-term services, and the suitability of proposed locations, including the former Knights of Columbus building. The Council ultimately voted against amending current ordinances to allow for an overnight shelter, with the motion to maintain current ordinances passing 4-1. In administrative matters, the City Administrator reported that no employees opted for the early retirement incentive, setting up a future discussion regarding budget alternatives and FTE cost management for the December 15, 2025 budget adoption.

The Council meeting centered on addressing mandated budget reductions of $273,000, following the submission of the proposed tax levy and budget to Mower County. Council members debated various options for staff reductions, including attrition, early retirement incentives, or the elimination of 2-3 positions. The Council ultimately moved to direct Human Resources to outline options for a time-limited early retirement incentive targeting the reduction of 2-3 positions, with any staff departures to be handled with dignity and respect. The policy for this incentive is scheduled for approval at the next meeting.