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Mahnomen council approves internal loan authority for E Washington Ave project
Summary
The Mahnomen City Council voted 4-0 to approve Resolution 5-18-2026-1, authorizing temporary internal financing for the municipal E Washington Ave project to be repaid from city funds and special assessments; council also discussed task-order changes that raise design costs and cut construction estimates.
The Mahnomen City Council on May 18 approved Resolution 5-18-2026-1 to authorize an internal loan to temporarily finance the municipal E Washington Avenue project, with repayment to come from city funds and special assessments.
The resolution, passed unanimously, permits the city to advance funds from an internal fund and later reimburse that fund from future tax levies or other available city revenues. Councilor Duane Schouveiller moved the resolution; Kelly Phillips seconded the motion, which carried 4-0.
Administrator Taylor Guenther and engineer Jon Pratt briefed the council on recent contract and scope changes. Pratt said design work will increase by $10,000 under Task Order No. 6, Amendment No. 1, reflecting multiple revisions. At the same time, Pratt said the construction estimate for a reduced project scope dropped from $55,000 to $30,000. Pratt also noted that the total basic water/sewer extension and road rehabilitation was earlier estimated at $250,000, with the city portion at $25,000 and MMCDC covering the remainder.
Pratt said special assessments will be applied to the MMCDC property, which the minutes note as the sole directly benefited property; the council asked for a special contract to be drafted and signed by MMCDC prior to approving bids. The resolution and related actions do not set a fixed loan amount in the minutes; the formal resolution language states the loan amount "not to exceed" a figure that will be completed in the adopted document.
Next steps include finalizing the MMCDC assessment contract, advertising plans and specifications for bids, and returning to the council for bid approval, with Pratt projecting bids could be reviewed at the first June council meeting.
Actions at the meeting were procedural and financial; no additional funding sources beyond city funds and assessments were approved at the May 18 session.
