Nowthen City Council Work Session meeting, September 16, 2024

What was on the agenda

3 items as recorded in the agenda, packet, and minutes, each with a short summary of what was at issue.

1. A1Call to Order; Pledge of Allegiance; Roll Call; Approve Agenda

   Call to Order; Pledge of Allegiance; Roll Call; Approve Agenda

   Mayor Pilon opened the 4th Budget Work Session at 6:00 p.m.; roll call showed Pilon, Rainville, Breyen, and Alders present and Fladebo absent, and the Council approved the agenda as presented.

   The agenda was approved as presented, 4 ayes.

   • meeting administration

   Approved
   p. 1↗Meeting City Council Work Session — Agenda (2024-09-16)1\. Call to Order · Pledge of Allegiance . Roll Call · Approve Agendap. 1↗Meeting City Council Work Session — Minutes (2024-09-16)Mayor Pilon called the session to order at 6:00 p.m. Roll call by Administrator Lehner. Present: Mayor Pilon, Council Members Rainville, Breyen, and Alders. Absent: Council Member Fladebo.p. 1↗Meeting City Council Work Session — Minutes (2024-09-16)MOTION BY CM BREYEN, 2ND BY CM RAINVILLE TO APPROVE THE AGENDA AS PRESENTED. 4 AYES. MOTION CARRIED.

2. A2Continue Discussion on the 2025 Preliminary Budget

   Continue discussion on the 2025 preliminary budget.

   The Council continued reviewing the 2025 preliminary budget, including the packet's proposed 9.98% levy increase of $193,190, with $20,000 of that increase for debt service, and a General Fund budget showing $2,487,865 in both revenues and expenditures/uses. No preliminary levy was adopted at this meeting; another work session was set for 9/23/24.

   The Council discussed higher Arvig internet costs and possible ways to reduce service charges by checking existing lines or alternatives. It also discussed MS4 engineering costs that were higher than expected, including a possible $24,500 annual cost and use of additional fund balance for the increase.

   The Council discussed adding a $15,000 code compliance budget as a limit for complaint-driven enforcement work, with the understanding that work would need a proceed and City Council approval and would stop if the limit was reached.

   The Council discussed the Fire Department budget, including removing $3,500 in fire chief merit wages, discussing an $80,000 fire chief salary figure, placing $20,000 in other pay for education incentives, and reducing fire supplies to $10,000. The discussion showed the Council still needed to clarify whether education incentives could be reimbursed or needed to be budgeted directly.

   The Council discussed the Sheriff's Contract, shown in the packet at $490,795 for 2025 with a $25,250 increase over the 2024 budget. Members discussed the two-year increase, staffing and recruitment pressures in law enforcement, and why contracting remained less expensive than starting a city police department.

   The Council discussed whether to increase ball field rental expectations and whether year-end funds could be designated by resolution for ball field improvements such as chalk, lime, and rakes. The minutes list an action item to create a resolution for putting funds into a ball field improvement fund at the end of the year.

   The Council discussed the preliminary budget and scheduled another meeting for 9/23/24 because more discussion was needed.

   • 2025 preliminary budget
   • levy
   • fund balance
   • fire department
   • MS4
   • code compliance
   • sheriff contract
   • ball fields

   Continued
   p. 1↗Meeting City Council Work Session — Agenda (2024-09-16)2\. Continue Discussion on the 2025 Preliminary Budgetp. 3↗Meeting City Council Work Session — Minutes (2024-09-16)The next meeting will be 9/23/24 at 6:00 p.m. There is still more to discuss, including recycling and other funds.

3. A3Adjourn

   Adjourn.

   Council Member Rainville moved and Alders seconded adjournment; the minutes state the meeting adjourned at 9:34 p.m.

   The minutes record a motion to adjourn and state that the meeting adjourned at 9:34 p.m.; no vote tally was shown.

   • meeting administration

   Approved
   p. 1↗Meeting City Council Work Session — Agenda (2024-09-16)3\. Adjournp. 3↗Meeting City Council Work Session — Minutes (2024-09-16)MOTION BY COUNCIL MEMBER RAINVILLE, SECONDED BY ALDERS TO ADJOURN. The meeting was adjourned at 9:34 p.m.

Motions and votes

2 motions on the record.

• M1_approve_agendaMOTION BY CM BREYEN, 2ND BY CM RAINVILLE TO APPROVE THE AGENDA AS PRESENTED.

  moved by BREYEN, seconded by RAINVILLE

  Passed

  • YPilon
  • YRainville
  • YBreyen
  • YAlders
  • ·Fladebo

  p. 1↗Meeting City Council Work Session — Minutes (2024-09-16)Present: Mayor Pilon, Council Members Rainville, Breyen, and Alders. Absent: Council Member Fladebo.p. 1↗Meeting City Council Work Session — Minutes (2024-09-16)MOTION BY CM BREYEN, 2ND BY CM RAINVILLE TO APPROVE THE AGENDA AS PRESENTED. 4 AYES. MOTION CARRIED.

• M2_adjournMOTION BY COUNCIL MEMBER RAINVILLE, SECONDED BY ALDERS TO ADJOURN.

  moved by RAINVILLE, seconded by ALDERS

  Passed

  p. 3↗Meeting City Council Work Session — Minutes (2024-09-16)MOTION BY COUNCIL MEMBER RAINVILLE, SECONDED BY ALDERS TO ADJOURN. The meeting was adjourned at 9:34 p.m.

Prior history on this business

When someone referred back to earlier business, we found the matching prior discussion and tied it in here.

• The council and staff met on August 26, 2024, to continue discussing the proposed 2025 Budget. Below are the changes implemented because of that budget meeting:

  — Lori Yager

  What this is about
  Prior August 26, 2024 budget work session and changes carried forward into this meeting.

  p. 2↗Meeting City Council Work Session — Agenda Packet (2024-09-16)The council and staff met on August 26, 2024, to continue discussing the proposed 2025 Budget. Below are the changes implemented because of that budget meeting:

  Related history

  The records I searched do not contain the August 26, 2024 budget work session itself or a record of the specific “changes implemented” from that meeting. The closest related records are later references to the 2025 budget: an April 14, 2026 packet states that Resolution No. 2024-105 appropriated funds for the 2025 budget, but the search results do not show the meeting where that resolution was adopted or the vote outcome. Later records show the 2025 budget was revisited after adoption. At the January 13, 2026 meeting packet, staff proposed amending the 2025 budget because legal, park maintenance, accounting, elections, and Sheriff expenditures were higher than expected, offset by administration savings from a reorganization. At the April 14, 2026 meeting packet, staff proposed another 2025 budget amendment transferring $15,000 from Administration and $10,000 from Contingency to Fire training, for a total $25,000 adjustment, related to recording State firefighter pension revenue and expense. These later records are related to the 2025 budget, but they do not document the August 26, 2024 work session changes.

  • ·Jan 13, 2026This page was left intentionally blank. <figure> CITY OF NOWTHEN </figure> ### REQUEST FOR COUNCIL ACTION <table> <tr> <
  • ·Apr 14, 2026### TITLE OF ISSUE: Approval of Resolution 2026-XX Amending 2025 Budget BACKGROUND AND SUPPLEMENTAL INFORMATION: The Cit
  • ·Mar 10, 2026<table> <tr> <th>Description</th> <th>Fee</th> </tr> <tr> <td>SSTS Reinspection</td> <td>$95.00 per hour, 1 hour minimum
  • ·Jan 13, 2026### TITLE OF ISSUE: Resolution Amending 2025 Budget BACKGROUND AND SUPPLEMENTAL INFORMATION: The City of Nowthen is a Pl
  • ·May 12, 2026### General Fund Budgetary Highlights Actual revenues were $31,569 under budget and expenditures were $103,155 under bud

• This is the price the city pays for choosing to not increase the levy for the 2024 budget. The city had a 5.3% levy increase in 2024 with an 11.2% increase in expenses.

  What this is about
  A reminder that the 2024 levy decision contributed to 2025 budget pressure.

  p. 3↗Meeting City Council Work Session — Minutes (2024-09-16)This is the price the city pays for choosing to not increase the levy for the 2024 budget. The city had a 5.3% levy increase in 2024 with an 11.2% increase in expenses.

  Related history

  The records provided here do not include the meeting where the 2024 levy or 2024 budget was adopted, nor do they show a formal vote “choosing to not increase the levy” for the 2024 budget. From these search results, I cannot confirm the specific recollection that the 2024 levy increase was 5.3% while expenses increased 11.2%. The records do show later budget pressure and related adjustments. At the April 14, 2026 meeting, the packet included a proposed resolution amending the 2025 budget by moving $15,000 from Administration and $10,000 from Contingency to the Fire Department, for a total $25,000 adjustment, because year-end recording of State firefighter pension revenue and expense caused the Fire Department to exceed its original 2025 budget. The May 12, 2026 audit materials also state that 2025 General Fund revenue increased only 0.8% from 2024, while taxes and special assessments increased by $174,734 due to new assessments and an increased levy.

  • ·Apr 14, 2026## Calcium Chloride <table> <tr> <th>Gravel Street</th> <th>GIS MAP FT</th> <th colspan="3">Actual FT Sprayed</th> <th r
  • ·Apr 14, 2026### TITLE OF ISSUE: Approval of Resolution 2026-XX Amending 2025 Budget BACKGROUND AND SUPPLEMENTAL INFORMATION: The Cit
  • ·Apr 14, 2026### A RESOLUTION AUTHORIZING AMENDMENT OF 2025 BUDGET WHEREAS, Resolution No. 2024-105 appropriated funds for personal s
  • ·May 12, 2026### General Fund Budgetary Highlights Actual revenues were $31,569 under budget and expenditures were $103,155 under bud
  • ·Feb 10, 2026<table> <tr> <th>Prosecuting Attorney Services</th> <th>Paralegal Hrs</th> <th>Rate</th> <th>Attorney Hrs</th> <th>Rate<

• but I remember we had that question before was the numbers are a little off one number included the increas Deb this now all numbers we've been seeing since last

  What this is about
  Council recalled an earlier question about whether levy numbers included the debt increase.

  0:12↗but I remember we had that question before was the numbers are a little off one number included the increas Deb this now all numbers we've been seeing since last

  Related history

  The records show a related levy/debt reference in the May 12, 2026 meeting packet: the City’s 2026 tax levy was listed as $2,332,787, a 9.55% increase, and the packet says that increase was “primarily for debt service.” The same packet also notes the City remained under its statutory debt limit as of December 31, 2025. I did not find a prior recorded council discussion or formal vote in these search results specifically asking whether the levy numbers did or did not include the debt increase. So this appears to be a partial match: the packet confirms the levy figures being reviewed included a debt-service-related increase, but the searched records do not show the earlier question itself.

  • ·Apr 14, 2026WRIGHT HENNEPIN SECURITY <table> <tr> <th>MEMORIAL PARK PAVILION AND 2 BATHROOMS</th> <th></th> </tr> <tr> <td>Feature</
  • ·May 12, 2026#### General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based
  • ·May 12, 2026## City of Nowthen Management's Discussion and Analysis ### CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED) Long-term
  • ·May 12, 2026### ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES · The State of Minnesota passed a bill which included aid for sma
  • ·May 12, 2026#### 10. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligatio

• yeah I just you know again we're pretty late in the budget cycle but it it' be nice to know because we talked about this last time the pass through being a net zero right

  — Mayor Pilon

  What this is about
  Council recalled prior discussion about planning-fee pass-through accounting and escrow accounts.

  2:00↗yeah I just you know again we're pretty late in the budget cycle but it it' be nice to know because we talked about this last time the pass through being a net zero right

  Related history

  The records show a partial match. In the March 10, 2026 packet, the proposed Planning, Zoning, & Development fee schedule described land-use application fees and non-interest-bearing escrow deposits, including a standard $1,500 escrow for certain applications. The language says escrow may be used for direct City costs such as recording fees and third-party consultants, including attorney, engineer, planner, septic, or others; if costs exceed the escrow, the applicant remains responsible, and if funds remain after review is complete, the City refunds the unused balance within 60 days. Related escrow language also appears in developer agreements in the March 10, 2026 and April 14, 2026 packets, including a $5,000 cash escrow that the City could draw on to reimburse costs and refund any overage. However, the records provided here do not show a recorded Council vote or a specific prior decision stating that planning-fee pass-throughs would be “net zero”; they show the accounting mechanism that would make applicants responsible for actual costs rather than the City absorbing them.

  • ·Mar 10, 2026<table> <tr> <th>Description</th> <th>Fee</th> </tr> <tr> <td>SSTS Reinspection</td> <td>$95.00 per hour, 1 hour minimum
  • ·Mar 10, 20262\. Intended Use of Minor Subdivision Lot. Developer wishes to subdivide the Property into three new lots for the constr
  • ·May 12, 2026# City of Nowthen Schedule of Findings and Responses on Internal Control ## CURRENT AND PRIOR YEAR INTERNAL CONTROL FIND
  • ·May 12, 2026# Qualitative Aspects of the City's Significant Accounting Practices ## Significant Accounting Policies Management has t
  • ·Apr 14, 2026### 3. Surety Requirements. A. Escrow Requirements. Prior to the City Council's execution of this Developer's Agreement,

• mayor can't we take the fulltime earnings down we Ved last week that we are not going to seal the fulltime Chie we're going to go with a parttime Chie

  — Council Member Alders

  What this is about
  Council recalled a prior Council vote to pursue a part-time rather than full-time fire chief.

  1:59↗mayor can't we take the fulltime earnings down we Ved last week that we are not going to seal the fulltime Chie we're going to go with a parttime Chie

  Related history

  The records searched do not contain a prior Council decision matching the recollection that Council voted “last week” to pursue a part-time rather than full-time Fire Chief. There is only a partial related reference: the January 13, 2026 packet’s clerk update lists “Extended the Fire Chief contract” among tasks completed by staff and Council in 2025, but the search results provided do not include the meeting minutes, motion, vote outcome, or any language distinguishing a part-time versus full-time Fire Chief position.

  • ·Feb 14, 2023The fire department is currently working on a grant application for a new turn out gear dryer. The grant is administered
  • ·Feb 10, 2026This is required by State, You are asking if you would be able to complete this yourself. What I do know is that it is r
  • ·Apr 14, 20266\. The approved total outdoor cultivation area shall not exceed 7000 square feet that is in a fenced and secured area a
  • ·Mar 24, 20265\. No extraction, production, or retail endorsements have been issued by the OCM. Even if granted by the OCM in the fut
  • ·Apr 14, 2026WRIGHT HENNEPIN SECURITY <table> <tr> <th>MEMORIAL PARK PAVILION AND 2 BATHROOMS</th> <th></th> </tr> <tr> <td>Feature</

• and for what it's worth we did thoroughly investigate that we looked at contract in the neighboring cities looked at pH own

  — Mayor Pilon

  What this is about
  Council recalled prior investigation of starting a city police department versus contracting for law enforcement.

  1:35↗and for what it's worth we did thoroughly investigate that we looked at contract in the neighboring cities looked at pH own

  Related history

  The records searched show a related discussion at the April 14, 2026 meeting, when Anoka County Sheriff’s Office representatives presented the monthly sheriff’s report and Chief Deputy Bill Jacobson thanked the council for its long-standing partnership with Nowthen. He said the arrangement provides high-quality law enforcement while saving taxpayer money, and deputies discussed their experience with the sheriff’s office and local police departments. However, these results do not contain the earlier investigation Mayor Pilon recalled into creating a city police department versus contracting with neighboring cities or the county. No formal vote or decision on that specific comparison appears in the records provided here.

  • ·Feb 10, 2026## CITY & GOVERNMENT CLIENTS Our public sector clients include: Municipal Clients: City of Annandale City of Andover P C
  • ·Apr 14, 2026MOTION BY COUNCIL MEMBER BREYEN, SECONDED BY COUNCIL MEMBER RAINVILLE, TO APPROVE THE CONSENT AGENDA AS AMENDED. 5 AYES.
  • ·May 12, 2026### a) Monthly Sheriff's Report Lieutenant Cole Bangerter presented the sheriff's office report for March 2026. Deputies
  • ·Apr 14, 2026### environment that is used only for the storage of regulated products. All regulated cannabis plants and products will
  • ·Mar 24, 2026### environment that is used only for the storage of regulated products. All regulated cannabis plants and products will

Sources

Documents and recordings archived for this meeting, when available.

• Document

  Meeting City Council Work Session — Agenda (2024-09-16)

  Agenda · Monday, September 16, 2024

  1 pages

  ↗
• Document

  Meeting City Council Work Session — Agenda Packet (2024-09-16)

  Packet · Monday, September 16, 2024

  28 pages

  ↗
• Document

  Meeting City Council Work Session — Minutes (2024-09-16)

  Minutes · Monday, September 16, 2024

  4 pages

  ↗
• Video

  Meeting recording

  YouTube

  Transcript · 1344 segments · 3:32:19

  ↗