Council adopts preliminary levy, passes Marketpalce TIF

The Waseca City Council adopted a preliminary tax levy and budget and passed the Waseca Marketplace tax increment financing (TIF) during their regular meeting on Tuesday, Sept. 16. 

 

After reviewing recommendations that would affect the budget or levy during Aug. 19 and Sept. 2 work sessions, the city council adopted the preliminary tax levy and budget that names a levy increase not to exceed 6.3 percent. The preliminary levy had to be approved before Sept. 30 when it will be submitted to the county and certified from there. 

 

The total city levy amount is about $6.2 million and includes general fund, tax abatement, capital funding and debt service levies that are all calculated on net tax capacity. The proposed 2026 general fund budget is just under $10 million. The proposed levy  would project a tax rate of 77.4 percent, which is just under the city maintained 78-percent. 

 City Finance and HR Director Alicia Fischer said new this year is a page on the city’s website under the finance tab that has all of the presentations, draft budgets and levy information provided at city council work sessions and meetings.  

 

The council also adopted the Economic Development Authority’s (EDA’s) preliminary tax levy, as it has a tax levy separate from the city’s. According to state specifications, the EDA’s levy cannot exceed 0.01813 percent of the taxable market value of the city, which equates this year to nearly $134,000. The increase would bring the amount of taxes paid on a median-valued home toward the EDA to about $26–roughly 92 cents more than in 2025.

 

During the meeting, council members also approved a resolution allowing up to 26 years of TIF for the Waseca Marketplace project. Fischer said there is a “pay as you go” note that means as the property taxes are paid within the development, the city will then return and pay that back to the developer. She said the tax increment is just what is garnered, there is no additional burden on the current taxpayers within the TIF district. 

 

Related to the Marketplace, city planner John Froke presented to the council the resolution requesting to sell city owned property related to the TIF district. Two properties owned by the city, 100 and 200 Nineteenth Avenue NW, would be purchased by Waseca Marketplace LLC for $1 for the phased development of the two 36-unit apartment buildings. 

 

The resolution stated that by selling the property, located north of the high school and south of Walmart, the City will start to earn property taxes on those properties as opposed to vacant land, which is exempt from taxation and brings no income to the city. The resolution carried. 

 

Bruce Paulson with Stantec presented updates regarding work on the downtown walkway which provides a passage from State Street to the alleyway to the east. He said the latest discussion is to install a more durable and vandal resistant finish up to eight feet above the sidewalk level. He offered the examples of a rock face or burnished rock or a synthetic plaster finish,  Paulson said it would also be an option to paint a mural in the space. 

 

The council also heard from Nicole Perrizo with the Waseca Band Boosters related to the organization’s request for the Waseca Bluejays symbol to be drawn on downtown city sidewalks as part of a fundraiser. The issue was tabled at the last council meeting in order to hear more from a Booster representative. 

 

After hearing from Perrizo, the council voted 4 to 3 to allow Band Boosters to use concrete stain to paint the symbol. Councilmember Stacey Schroeder said she is curious if the businesses could instead display a banner or paint their own windows instead of using the city-owned sidewalks.

 

“While I love the Bluejays and I love hometown spirit, there is a part of me that is apprehensive about doing this downtown and setting a precedent,” she said. 

 

City Attorney Chris Kennedy said allowing the symbol to be painted by the Band Boosters opens the door to a lot of different things being put on the sidewalk, “but at the end of the day, the sidewalk is yours,” he said. 

 

Waseca citizen Jeanne Sexton, who was in attendance at the meeting, requested to speak and said she has seen nice artwork on buildings and sidewalks in numerous other cities in Minnesota. She spoke in support of allowing the symbols. “The Bluejay is our thing. It kind of adds character,” she said. 

 

In commission reports, Mayor Randy Zimmerman and councilmember James Ebertowski informed the council the EDA board approved $24,000 in loans for the AmericInn to help them finish their projects. The EDA also discussed the idea of audio recording the meetings, but Ebertowski said there was no solid consensus on that as rules and regulations would have to be worked out. Zimmerman added the EDA board also received a resignation, so they will be looking at a vacancy. 

 

With the Park Board, councilmember Mark Christiansen said work is completed on the Tink Larson Community Field and that the city will not staff the concessions because of costs. He also said the dog park shelter at Memorial park could be built bigger with cheaper materials and hopes it will be finished either this fall or spring. 

 

In closing announcements, Zimmerman asked the council and the public to do a better job of treating each other respectfully. 

 

“In light of recent events over the last couple of weeks, I really hope that we can all make a concerted effort to respect each others’ opinions and views and refrain from violence and retributions  and anything like that. Especially in regards to political opinions and lifestyles. We need to do a better job of respecting each other,” he said. 

 

The meeting adjourned at 8:04. The next regular city council meeting will be Tuesday, Oct. 7 at 7 p.m.