City to update treatment plant; hears audit report summary

A significant portion of the regular Waseca City Council meeting on July 15 was occupied by a summary of the 2024 financial audit, the approval of murals on grain silos in town and the anticipation of learning the identity of a new tenant at the former Taco John’s building to be announced this month. 

 

The council discussed and approved a $250,000 project to overcome problems at the sanitary sewer facility. According to the proposal, there is unreliable service of the aeration blowers at the wastewater treatment plant, which were purchased during the 2008-2012 plant renovation. A proposal shared during the meeting stated that engineering analyses have determined the need to replace the Nelson Lift Station and to replace the aeration blowers at the treatment plant. 

 

City Manager Carl Sonnenberg said the cost would be around a quarter of a million dollars, with the system set up as economically as possible. He added that right now he did not have a lot of answers as the city is struggling with cash. 

 

“It took us a lot to get us to where we are with the portable generators,” Sonnenberg said. “We’re very judicious with how we spend our money on sanitary sewer fund. We don’t have extra checks in the check book to be written.” 

 

Councilmember Gary Conrath expressed the thought that this would be the best time to put in permanent generators during the renovation so that there is no time wasted when a storm happens and the portable generators have to be moved. 

 

“We just don’t have the money to do everything we’d like to do,” Sonnenberg countered.

 

The audit of the city’s 2024 finances was summarized by Abby Schmidt of the accounting firm Abdo. She said results showed no instances of noncompliance, which she termed a “clean” report. She said the city’s fund balance had decreased due to expenditures which exceeded city revenue, and recommended the council “has to be intentional to increase those reserves.” 

 

Sonnenberg offered assurance, saying that an apparent decrease in reserves also occurs simply because revenues sometimes come in after an expense has been incurred, creating the appearance of a decrease. According to information posted by the city online, the city’s annual operating budget is close to $13 million.

 

In general fund revenues, the highest was intergovernmental, with the lowest in the “other” category. 

 

Schmidt stated the city’s key performance indicators of expenditures by program are similar to those of comparable nearby municipalities. She said Waseca showed to be higher in public safety and capital outlay and lower in transfers out and community development. 

 

“Does the council feel that the community expectations are being met?” Sonnenberg asked. “My working plan is to bring [the capital outlay] down.”

 

Sonnenberg said he will be coming to the council over the next few months to discuss decreasing the number of capital programs, of which he said Waseca has many. 

 

The water, sewer, electric and storm water fund were also discussed in detail, with few concerns expressed for each. The tax rate trended above the peer groups, with the tax rate per capita right in line, trending even a little lower than peer groups. Schmidt said it is typical to see increases in this category and to keep in mind that taxes per capita should go up with inflation costs. 

 

The city’s audit is posted online on the City of Waseca’s website. 

 

The council approved a permit to paint murals on two existing grain silos located at 212 Third Avenue Northwest, at the old EACO Mill site near Loon Lake. The mills were originally built by Wiliam Everett in 1870. 

 

Steve Delaitsch of Delaitsch Studios and artist of the project, was at the meeting to answer questions and explain the images he intends to use, which show horses pulling a wagon or carriage. The council had no questions about the mural, but expressed excitement and was curious about Delaitsch’s process. 

 

“What a fantastic tribute to the Everett family and the flour mill company,” Mayor Randy Zimmerman said. 

 

Delaitsch said he plans to start sometime in August, with the murals likely to be finished yet this fall. 

 

In reports, councilmember Mark Christiansen said the Park Board talked about finishing the Ash Tree grant project to use the money to help remove ash trees and plant new ones. He added the installation of new playground equipment at Northeast Park is finishing up shortly and that the board signed the contract for restoration services for Maplewood Park Lodge. 

 

Mayor Zimmerman and councilmember James Ebertowski updated the council regardng the economic development authority (EDA) meeting and said there are a lot of things happening in terms of economic development in the city. They said they had toured the newly remodeled AmericInn, which has 54 units. It was mentioned it will probably be made public this month what type of business will be opening in the former Taco Johns location. 

 

The meeting adjourned an hour later, with the next regular city council meeting being Wednesday, Aug. 6 due to Nite to Unite on Tuesday, Aug. 5.