Milaca council approves SCDP water-tower application, airport bid and multiple permits

Milaca — The Milaca City Council on March 24, 2026 voted unanimously to submit a Small Cities Development Program (SCDP) application seeking $600,000 toward a water-tower rehabilitation intended to benefit low- and moderate-income residents, approved a low bid for airport work and signed off on a string of public-works plans and event permits.

Mayor Dave Dillan opened the meeting at 6:00 p.m. and the council held a public hearing at 6:08 p.m. during which Heidi Peper presented the SCDP application process. Peper said the SCDP public-facility request is for $600,000 and described a timeline that would deliver plans and specifications in June 2026, bid construction in February 2027 and complete construction by November 2027. Award notifications are expected in May or June 2026. The minutes list the project's total anticipated cost as $1,300,000,000; city staff and the minutes indicate that figure likely contains extra zeros and that the intended total is approximately $1.3 million.

The council adopted Resolution #26-07 to file the SCDP application and approved Resolution #26-06 (a summary ordinance) in the same vote. Councilmember Tim Poorker asked about the city's chances for receiving SCDP funds; Heidi Peper said that Small Cities staff encouraged Milaca to apply, which she described as a positive sign.

On public safety and personnel policy, Police Chief Quinn Rasmussen presented an incident-report handout and a proposed take-home vehicle policy. Councilmember Poorker questioned whether extending the probationary period to two years would improve retention; Rasmussen said a two-year probationary period "would be a deterrent" to applicants. The council approved the take-home-vehicle policy by unanimous vote.

Public-works and planning items carried by unanimous votes included approval of design plans for the Rum River Special Education Co-op (no changes), manhole repair plans, and grading plans for the Milaca Junction addition. Mayor Dillan noted the new pickleball courts in Rec Park and reported the nets are up.

At the airport, Nick Grahek of Bolton & Menk reported eight bids were received March 12. The low bidder was Clark Companies at $169,922.50; the council approved awarding the bid. Grahek said the low bid allowed staff to revise the grant request for taxilane reconstruction to $216,560.25 with a city share of $24,062.25, for a project total of $240,622.50; the council approved submitting that grant application.

In new-business items, the council approved Resolution #26-08 to permit a minor lot split for RTC Enterprise, LLC at 520 8th Street NE in an I-1 (light industrial) zone; Stantec representative Evan Monson said new easements will be required and that the smaller lot could be leased for a cell tower. The council also approved special-event permits for 3rd Lair, Music in the Park, Movies in the Park and the Milaca Liquor Store 80th-anniversary celebration (the liquor-store event will coincide with Milaca Meats' first anniversary and include a rib cookoff, band and vendor activities). City Manager Tammy Pfaff said the liquor-store celebration remains in planning and that local vendors are coordinating.

Council approved placing $50,000 in a six-month certificate of deposit at First National Bank for the deputy registrar account to keep that balance below FDIC-insured limits. The meeting concluded with council comments about Rec Park scheduling and local newspaper coverage; Poorker asked whether the Union-Times remains the city's official paper, and Pfaff confirmed it does. The meeting adjourned at 6:45 p.m.

Votes at a glance — recorded motions and outcomes

- Approval of agenda: motion Larsen/second Poorker; outcome: approved (unanimous). - Consent agenda (minutes, bills, citizen participation plan): motion Johnson/second Larsen; outcome: approved (unanimous). - Resolution #26-06 (summary ordinance): motion Larsen/second Johnson; outcome: approved (unanimous). - Resolution #26-07 (SCDP application): motion Johnson/second Larsen; outcome: approved (unanimous). - Take-home vehicle policy: motion Poorker/second Johnson; outcome: approved (unanimous). - Rum River Special Education Co-op design: motion Johnson/second Poorker; outcome: approved (unanimous). - Manhole repair plans: motion Larsen/second Johnson; outcome: approved (unanimous). - Milaca Junction addition grading plans: motion Johnson/second Larsen; outcome: approved (unanimous). - Airport low bid award (Clark Companies, $169,922.50): motion Johnson/second Larsen; outcome: approved (unanimous). - Airport taxilane grant application (request $216,560.25; city share $24,062.25): motion Johnson/second Larsen; outcome: approved (unanimous). - Resolution #26-08 (minor lot split, RTC Enterprise LLC): motion Larsen/second Poorker; outcome: approved (unanimous). - Special-event permits (3rd Lair; Music in the Park; Movies in the Park; Milaca Liquor Store 80-year celebration): individual motions; outcomes: approved (unanimous). - Deputy Registrar 6-month $50,000 CD at First National Bank: motion Johnson/second Larsen; outcome: approved (unanimous).

Why it matters

If awarded, SCDP funds would cover part of a water-tower rehabilitation that city staff say is intended to benefit low- and moderate-income residents and support the city’s drinking-water infrastructure. The airport bid and subsequent grant request will move a taxilane reconstruction project closer to construction. Multiple approvals for public-works plans, events and a minor lot split show the council advancing near-term development and community programming.

What’s next

SCDP awards are expected in May–June 2026; if funded, the project schedule outlined in the hearing assumes plans/specs by June 2026, bidding in February 2027 and construction concluding in November 2027. The airport grant application will be submitted with the revised figures described by Bolton & Menk. The council will implement approved policies and permits as planned.

Sources: Council minutes and public hearing presentation excerpts recorded March 24, 2026; city staff and consultants cited in meeting minutes.