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Crookston City Council to Hire Financial Management Plan Company

The Crookston City Council met Tuesday evening at Crookston City Hall in the Council Chambers. 

During the Crookston Forum, the Council heard from several Crookston residents who came to be heard with their thoughts and opinions on the closing of the Crookston Public Pool.  Residents Anna Brekken, Matt Rosu, and Kathy Lessard spoke strongly against the council’s decision.  The council listened and acknowledged their disappointments. Mayor Stainbrook brought the forum to a close as he felt the discussion could continue later in the evening during the budget session if need be.

City Administrator Jeff Shoobridge added a presentation to the meeting agenda covering the Financial Condition of the City of Crookston. Shoobridge presented a PowerPoint covering what he covered with the Council last month regarding why the City of Crookston is in the condition it isShoobridge talked about tax capacity, tax rates, and inflation and how they have all been affected by the city’s lack of financial planning for decades. 

The Consent Agenda for the evening included approval of the meeting minutes from October 28, 2024.  The council was asked to approve bills and disbursements for $214,565.17.  They were asked to call for a public hearing regarding increasing the water and wastewater rates for 2025, to canvass the tabulation of votes cast for four (4) council positions, and to declare the results from the November 5, 2024 election.

The Consent agenda also included a resolution to approve the contract with Law Enforcement Labor Services (LELS) local No. 31 for 2025-2027, the acceptance of the external auditors’ report, the audit of the City of Crookston Financial Statements, and a single audit for the year ending December 31, 2023. 

The Consent Agenda was approved unanimously.

There were four public hearings scheduled for Tuesday’s meeting.

  • 2024 Reconstruction of Houston Avenue – Hunter Street to South Ash Street
  • Bituminous mill and overlay on North Broadway – Sixth Avenue NW to Fisher Avenue 
  • Bituminous mill and overlay on 3rd Avenue SW – Bruce Street to Old Trunk Highway 75
  • Proposed assessments for unpaid water and sewer charges and for current services

The hearings were opened, read aloud, and, after no responses, closed.

The Council moved on to the regular agenda for the evening. 

The first item on the regular agenda, was the 2025 non-profit organization requests. Shoobridge explained why the council tabled this item for a future meeting. “Our city attorney, he had identified that there is a State Attorney General’s opinion out there that says municipalities cannot fund private recreation groups, such as the Boy Scouts and things of that nature,” says Shoobridge. “We just want to make sure we are clear, and we want to support the organization, but we also need to make sure we are staying in compliance with the Minnesota Statute.” It was explained that the item is being tabled just until the City can get clarification from legal. “So we can make sure we are not going to put the city in a bind from a legal sense.” The request in question, which was one of six the council had approved, was for Get Kids Outdoors, The Adam Parnow Foundation, which had requested $5,000.

The next item was a resolution to approve the Small Cities Development Program Rehabilitation Loan for Local Income for KEP Realty, LLC.  KEP Realty, LLC., submitted an application to receive a deferred payment loan for a rehab project within the City of Crookston.  The loan application is in the amount of $51,800.  The Tri-Valley Community Council, Inc., which is the administrating entity, reviewed the application and the loan criteria and has affirmed that KEP Realty, LLC has met the criteria.  Tri-Valley Community Council, Inc. recommended that a Small Cities Development Program loan be provided to KEP Realty, LLC.  The council voted unanimously to approve the resolution.

Item 8.03, a resolution regarding a Letter of Support with respect to the Minnesota Department of Transportation (MnDOT) Active Transportation Planning Assistance, was approved unanimously by the council.  In signing the Letter of Support, the City of Crookston is committing to working with MnDOT’s planning consultant to complete an Active Transportation Action Plan to integrate local input and prioritize walkable, bikeable connections across the city.

The next item, 8.04, is a resolution to approve the Local Government Special Appropriation application for the Crookston Colborn Property Development.  This means that the Mayor and City Administrator are authorized to execute agreements necessary to implement the Crookston Colborn Property Development project (s) on behalf of the City of Crookston.

The next item, item 8.05, was for a closed session to discuss Crookston Fire Fighter Labor Negotiations. The meeting was reopened, and item 8.06, a summary of the closed session, was given. City Administrator Shoobridge mentioned the topics discussed in the closed session and said that it seemed they had come to a consensus on the terms of an offer. Until contracts are written, reviewed, and signed, that is all the information that is available.

The last item on the regular agenda for the evening was a late addition as of Tuesday afternoon.  Item 8.07 is a resolution regarding authorizing a contract with Ehlers Associates, Inc. to provide a long-term Financial Management Plan to the City of Crookston.  “This is a long-standing council priority, and we never had an actual resolution to move forward on it,” says Shoobridge. “Any spending amount past $10,000 requires council action.”  Ehlers Associates has been mentioned in many meetings in the past few months, and member have expressed their interest in getting Ehlers on board. “This is to clean up,” says Shoobridge. “I’ve already been in contact with Ehlers, they have provided us with the agreement, they know its coming, they have just been waiting many months for the go ahead.”  The agreement with Ehlers is a Not To Exceed agreement of $25,000.  Shoobridge believes the money spent will help get the City back on track. “Sometimes you have to spend money to have clear paths so that you don’t waste money in the future.”

Immediately Following the City Council Meeting, there was a Budget Session with Discussion and Guidance.

City Administrator Jeff Shoobridge brought to the Council this budget session a number.  The number being an $-840,000 deficit if the Levy were to be set at 15% for 2025.  This number was with the pool removed.  Shoobridge wanted the Council to offer suggestions and ask questions of him so that they could keep moving towards getting the budget ready for the end of December. 

Clarifications were made during the budget session, as during the Crookston Forum earlier in the evening, it was asked why the City couldn’t back out on the Red River Valley Winter Shows project and the Rail Road Spur Project.  It was explained that the RRVW project is being done with matching funds through DEED.  The city was not aware of how bad the finances were when they agreed to the project but are committed and looking for other means of funding to offset their part of the project.  As for the Rail Road spur, we caught up with Community Development Director Karie Kirschbaum. “I just wanted the community to know that the Rail Road Spur, the MRSI Grant, comes from MnDOT,” says Kirschbaum. “That was awarded to Minnesota Northern Railroad.”  Kirschbaum explains what the cities’ part in that project is. “The only thing that the city did, what we did donate, as part of the in-kind for them, ten acres of the land where they could build the spur,” says Kirschbaum. “The first leg was granted to them, so they will build one leg and then they will go after and extend down to build it a little longer so more people can utilize it.” Kirschbaum says they are very excited about the project but wanted to explain that it was not a grant awarded to the city.

In closing out the budget discussion, City Administrator Shoobridge asked the council what they would like to see him present at the next meeting. The council asked that he bring them some levy options in different ranges and how those numbers would affect an average household in the City of Crookston. “We are really looking to have a couple of different tax percentages or rates,” says Council Member Kristie Jerde. “Right now he is operating from a 15% but we’d like to see something that’s more like a medium range and something that would be like at the top tier of our range which means the 26.5% I believe.” If the council could get these different percentages in front of them, it would be helpful, says Jerde. “We are just looking at what that would look like for our budget and what things would have to be cut or not cut by doing that.”

As it stands, the next City Council meeting will be on November 25 at 5:30, but Mayor Stainbrook said there is a possibility of adding meetings on the off weeks if needed.

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