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Vernon Center council approves loan payments, funds transfer and $497,310 pay application contingent on funding

Vernon Center City Council · July 2, 2025
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Summary

The Vernon Center City Council approved several routine financial motions including a $15,520 Northland Trust loan payment, a $46,434.35 PFA loan payment and Resolution 2025-17 transferring $8,958.71 between utility accounts; the council also approved Pay Application #15 for $497,310.11 contingent on external funding.

Mayor Dana Ziegler and the Vernon Center City Council on the recorded agenda approved a series of routine fiscal and infrastructure actions, including loan payments, an intra-fund transfer and a large pay application tied to the city’s ongoing infrastructure project.

Councilor Lisa Peterson moved to approve Resolution 2025-17 to transfer $8,958.71 — $4,837.70 from the 601 Water Checking to 601 Water Savings and $4,121.01 from the 602 Sewer Checking to 602 Sewer Savings — and Councilor Adam Finney seconded; the council approved the motion. Clerk Kara Hansen presented the underlying account balances during the discussion and said she will follow up with documentation at the next meeting.

The council approved a Northland Trust loan payment of $15,520.00 (motion by Councilor Peterson, second by Councilor Emily Edwards) and a Minnesota Public Facilities Accounting (PFA) loan payment of $46,434.35 (motion by Councilor Peterson, second by Councilor Wendy Bennett). Both motions carried.

On the infrastructure project, Councilor Peterson moved to approve Pay Application #15 in the amount of $497,310.11 on condition that required funds arrive from bonding, Blue Earth County and MRWA; the motion carried. Mayor Ziegler also directed staff to prepare a resolution to either repay or extend repayment of an internal loan from Resolution 2022-19 and moved to extend the payback deadline to Aug. 31, 2025; that motion passed.

Clerk Hansen reported that MRWA draw #10 for $25,652.92 (to cover SEH invoices) has been submitted and that USDA-RD reviewer Ed Gilmore is reviewing prior invoices; the council approved MRWA #10. Council also approved the staff recommendation to take affirmative procurement steps for small, minority and women suppliers related to Well #3 and decommissioning Well #1.

The council’s votes on the items were recorded as unanimous voice approvals in the meeting transcript. The council is scheduled to revisit outstanding documentation and follow-up items at the next regular meeting.