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Milaca council approves 2025 budget, backs airport grant and utility rate increases
Summary
At a Dec. 12 special work session the Milaca City Council approved the 2025 budget, voted to pursue a largely state-funded airport equipment grant, adopt water and sewer rate increases from a recent rate study, fund sidewalk work on 1st Street W, extend utilities to Milaca Junction Addition, and add projected School Resource Officer revenue, reducing the levy to a 3.4% increase.
The Milaca City Council voted Dec. 12 to adopt the city’s 2025 budget and to approve a package of related funding decisions, including pursuing a 90% state grant for airport equipment, increasing water and sewer rates per a recent rate study, installing utilities to the Milaca Junction Addition, and funding sidewalk improvements on 1st Street West.
City Manager Tammy Pfaff presented the budget overview and recommended changes. Pfaff said health insurance costs came in lower and several capital items were adjusted: $5,500 was added for new taser equipment, airport professional services were reduced to $10,000, and a proposed $60,000 mower for the airport was identified as eligible for a state equipment grant that would cover about 90 percent, leaving roughly $6,000 as the city’s share. Pfaff also described planned water and sewer work tied to a recent rate study and estimates to extend utilities into the Milaca Junction Addition.
Councilor Ken Muller moved to approve pursuing the airport grant; Councilor Laurie Gahm seconded and the motion passed unanimously. Councilors also approved the water and sewer rate increases after Pfaff summarized the rate-study numbers: projected water revenue of $689,927 with planned water expenditures of $166,250 for a line to a new property and $55,000 for a water-plant generator (an estimated water shortfall of about $144,456); sewer expenditures included $55,000 for jetting and $169,250 for a sewer line to the development (an estimated sewer shortfall of about $243,015). Councilor Laurie Gahm moved to adopt the rate increases, Councilor Norris Johnson seconded, and the motion passed unanimously.
On extensions to serve new development, Pfaff said the sewer line would run roughly 900 feet into the Milaca Junction Addition and noted staff intends to apply for Public Facilities Authority (PFA) funding at about 1 percent interest to avoid bonding the full amount. Councilor Norris Johnson moved to proceed with installing water and sewer lines to the Milaca Junction Addition; Councilor Ken Muller seconded and the motion passed.
For street- and pedestrian-related work, Pfaff recommended using $231,000 from the city’s RBC money market account, $53,610 in state transportation aid, and a $35,000 contingency buffer to fund sidewalk improvements on 1st Street West; Councilor Laurie Gahm moved to proceed, Councilor Norris Johnson seconded, and the council approved the transfer and project.
Pfaff also proposed adding an estimated $28,037 in outside funding to the General Fund contingent on placing a School Resource Officer in schools in August 2025. Councilor Laurie Gahm moved to include that revenue assumption; Councilor Lindsee Larsen seconded and the motion passed.
With those changes, Pfaff reported about a $13,000 excess in the General Fund and recommended reducing the proposed levy increase from 4.94 percent to 3.4 percent. After brief discussion, Councilor Norris Johnson moved to approve the 2025 budget as presented; Councilor Ken Muller seconded and the council voted unanimously to adopt the 2025 budget. Mayor Dave Dillan directed that the approved budget be included in the council packet for the Dec. 18 meeting. The special session adjourned at 12:29 p.m.
Votes at a glance: airport grant — motion passed (mover: Councilor Ken Muller; second: Councilor Laurie Gahm); water and sewer rate increases — motion passed (mover: Councilor Laurie Gahm; second: Councilor Norris Johnson); water/sewer extension to Milaca Junction Addition — motion passed (mover: Councilor Norris Johnson; second: Councilor Ken Muller); sidewalk improvements on 1st St W — motion passed (mover: Councilor Laurie Gahm; second: Councilor Norris Johnson); add School Resource Officer revenue to General Fund — motion passed (mover: Councilor Laurie Gahm; second: Councilor Lindsee Larsen); final 2025 budget adoption — motion passed (mover: Councilor Norris Johnson; second: Councilor Ken Muller).
