Proposed Minutes
Regular City Council Meeting
October 13, 2026
Mayor Kirchmann called a regular meeting of the Kenyon City Council to order at 7:00 p.m. in the City Council chambers, 709 2nd Street, on October 13, 2026.
The following members were present: Council Members Don Kirchmann, Deanna Gard, Kim Helgeson, Mary Bailey
Absent: Lee Sjolander
Also, present: City Administrator Scott Lehner, Engineer Derek Olinger, Attorney Scott Riggs, Administrative Assistant Holli Gudknecht, Heather Dewitz, Josh Johnson, Parker Burdorf, Blake Waltman, Jeff Sjoblom, Nate Craig, Barney Nesseth, Keith Allen, Billy Dyrdahl, Doug Henke, Diane Barrett, Barb Groth, Michelle Kreisler, Kelly Kreisler, Katie Orr, Peyton Temple, Dakota Temple, Ron Peterson, Todd Kieffer, Jeff Traxler, Alex Baraniak
Via Zoom: Jessi Sturtz, Macie Stevermer, Jean McGann
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
Jeff Traxler stated that he thought tax abatement was an incentive for businesses that have done development or construction to increase the value of their property. He said two years ago his building was worth about $100,000 and he improved it to be worth $1.5 million. He came to the city and tried to get a tax abatement but was told he did not qualify. He did not think the grocery store should be considered for a tax abatement just because it is suffering financially. A lot of businesses are suffering, and this would not be fair to the other businesses.
Billy Dyrdahl stated he had reviewed the past ten years of city budgets and concluded the city has a spending problem. KMU has no spending problem-in fact, it makes money. As far as city jobs, lifelong employees are not being respected and valued. The administrator is paid too much and does too little. The city has way too much outsourced.
Minnesota State Representative Keith Allen provided an overview of the legislative session, including unfunded mandates affecting local governments, local control, school bus safety legislation, and the proposed constitutional amendment concerning school trust lands on the November ballot.
Katie Orr suggested gathering public input regarding community development and future development proposals. She asked the city council to add a question to the November ballot to see what citizens think about the new apartment building in town.
ADOPT AGENDA
Motion by Bailey seconded by Helgeson to approve the agenda. Motion carried 4-0-0.
CONSENT AGENDA
Motion by Helgeson second by Bailey to approve the Consent Agenda, which includes:
Approval of hiring of Blake Waltman, Line Worker/Water Operator
Approval of hiring of Thomas Carlson, Part-time Liquor Store
Approval of hiring of Barbara Groth, Part-time Administrative Assistant
Approval of Mobile Merchant License for Taboo Tacos
Resolution 2026-36: Authorizing a Transfer from the General Fund (101 Fund) to the
EDA Fund (205 Fund) in the Amount of $5,000
Financials and Payment of check numbers, 78601 through 78712; 7638E through 7682E
City Council Meeting Minutes of September 8, 2026
City Council Special Meeting Minutes of September 21, 2026
Motion carried 4-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
DEPARTMENT HEAD UPDATES
Todd Kieffer – EDA Report
Kieffer updated the council on EDA projects that are being worked on including: Habitat for Humanity has found a qualified family, beautification of downtown, façade improvement projects and window murals, Small Business Development Center opportunities, Workforce Development Center offerings, and an update on ESMC.
Public Works
Nate Craig stated public works is scheduling two to three days a week to street sweep leaves in the fall. The rose bushes will be buried next week. They will be jetting the sewers this fall. Biosolids will be spread on the field soon. He will be ordering tree roses out of Ohio and see how they do here.
Jeff Sjoblom – Police Chief
Police Chief Sjoblom reported 179 calls for service during September. He stated there were six officers employed last year at this time versus three officers now. Misty England has resigned as a part-time officer.
Other
None
ADMINISTRATOR UPDATE
KMU Staffing Update
Administrator Lehner provided an update regarding staffing needs at KMU and the Public Works Department. The KMU supervisor and the public works worker positions will be posted by the end of the week.
Planning Commission
Administrator Lehner stated that John Cambronne resigned from the planning commission.
CMPAS Update
Administrator Lehner stated he had met with CMPAS on the electric needs at the business park. What the KMU Commission and city council thought was being done, was not happening. We do not have ample electricity to be brought to new business park. The needed transformer should have been ordered two years ago. The transformer was estimated to cost $1 million. Lots of deadlines have not been met. A future substation needs to be built and could cost $3 million to $5 million.
Work Sessions Before Council Meetings
Administrator Lehner stated it was decided to not have work sessions the week before the council meetings. Council members can come in one or two at a time on Monday or Tuesday before the council meeting to discuss what is coming up.
Fire Department
Administrator Lehner stated that two fire department candidates will be interviewed on Thursday night. They are trying to get back to full staff.
ENGINEERING
2025 Street & Utility Project
Engineer Olinger stated that the streets have been paved. The contractor has some final manhole
adjustments and a brief list of punch list of repairs to be completed prior to the October 31st completion date. The majority of this pay application is for paving work and released retainage for completed punch list repairs.
2025 Street and Utility Improvements – Fitzgerald Excavating & Trucking -Pay Application No. 10
Pay request No.10 includes work completed through October 2, 2026.
Motion by Bailey seconded by Gard to approve pay application #10 to Fitzgerald Excavating in the amount of $78,668.19. Motion carried 4-0-0.
Trunk Highway 60 Utility Scoping Report
Engineer Olinger reviewed utility replacement options associated with MnDOT's anticipated Highway 60 pavement project, currently planned for approximately 2030. The Council discussed the cost of replacing utilities beneath the highway, with full replacement estimated to cost at least $3 million to $4 million.
Motion by Bailey seconded by Helgeson to accept the report and direct staff and the city engineer to continue planning activity with the city financial advisor and MnDOT involving partial utility replacement. Motion carried 4-0-0.
Kenyon Crossings Final Plat
Engineer Olinger stated that the final plat proposed to combine and revise two parcels of land in separate subdivisions (Kenyon Original Plat and S.A. Bullis’ Second Addition to Kenyon and Rearrangement of Block 29 of Bullis’ Second South Side Addition).
Resolution 2026-35: Approving Final Plat Kenyon Crossings
Motion by Kirchmann seconded by Bailey to adopt Resolution 2026-35. Motion carried 4-0-0.
Lead Service Line Replacement Project-Design Scope & Fee
Engineer Olinger reported that anticipated state funding assistance for lead and galvanized service line replacement had been reduced from previous expectations. Approximately forty service lines were estimated to require replacement, with an overall project cost of $1 million. The revised state funding program was expected to limit annual assistance to approximately $150,000. Further project planning will need to account for the revised funding availability.
LEGAL
OLD BUSINESS
2027 Proposed Enterprise Funds Budget
Jessi Sturtz of Abdo presented the proposed 2027 enterprise fund budgets for water, sewer, electric, and stormwater, along with a review of the General Fund budget and wage and benefit scenarios. The proposed 2027 tax levy increase remained $141,574, or 9.26%, over 2026. The Council discussed revenues, expenses, fund balances, debt service, and interest allocations among the utility funds. The electric fund's operating losses over the previous three years were discussed, along with adjustments intended to improve its financial position. The combined projected net revenue for the four enterprise funds was approximately $318,786.
NEW BUSINESS
2027 Budget Considerations
The Council continued its discussion of the 2027 budget. Mayor Kirchmann suggested eliminating Council compensation from the proposed 2027 budget. Employee wages were left unchanged from the existing budget proposal. Staff will continue reviewing potential budget adjustments and present updated information to the Council in November before final levy certification in December.
Motion by Gard seconded by Kirchmann to take away council pay for 2027. Motion carried 4-0-0.
Tax Abatement – Grocery Store Assistance
Administrator Lehner stated he had a request for tax abatement assistance for the local grocery store from a potential buyer. The proposal involved $40,000 over five years, or $8,000 annually, and an estimated $5,000 fee to Northland Securities for preparation of the necessary financial documents.
The council discussed scheduling a public hearing to receive community feedback before making a final decision.
Motion by Kirchmann seconded by Gard to schedule a public hearing on the proposed grocery store tax abatement as soon as possible and authorize the city administrator to move forward with getting the supporting documents to make that happen. Motion carried 4-0-0.
Barney Nesseth expressed his disappointment with the council for not acting on this last month and again not this month. His decision to purchase the grocery store is pending on this.
Internal Loan Transfer
Administrator Lehner stated that KMU had recommended a loan of $350,000 from the electric fund to the EDA at an interest rate of 2% over a 10-year term. The loan would provide funding for the purchase of land south of town for future housing development.
Motion by Kirchmann seconded by Bailey to adopt Resolution 2026-37. Motion carried 4-0-0.
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, October 20th @ 3:00 p.m.
EDA Meeting: Tuesday, October 27 @ 8 a.m.
City Council Meeting: Tuesday, November 10th @ 7 p.m.
Township Fire Contract Meeting: Tuesday, December 1st @ 6:00 p.m.
Truth in Taxation Public Meeting: Tuesday, December 1st @ 6:30 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Administrator Lehner encouraged council members to talk to some employees if they wanted to know how things are going and the culture in the city. Also, with all the things going on in the city, he wanted the council to know that an employee that left a little while ago wants to come back to what is going on here. That really speaks to the culture we are trying to build in the city.
Council Member Gard asked about the possibility of scheduling meetings between regular City Council meetings to allow Council members additional opportunities to ask questions and receive clarification on agenda items and other city business.
Administrator Lehner explained that, rather than scheduling additional formal work sessions that would require Council members to attend another evening meeting, Council members could contact him on Mondays or Tuesdays after receiving and reviewing the Council packet. Individual meetings could then be arranged as needed to review agenda items, answer questions, and provide additional information before the regular Council meeting. The intent would be to ensure Council members have a better understanding of the information presented and are prepared for discussion and decision-making at the meeting.
Council members discussed the balance between having sufficient information before meetings and allowing each member to independently consider agenda items and make decisions. It was noted that additional information, public input, and discussion during the regular Council meeting can influence members' perspectives and decisions. The importance of collaboration and open communication was recognized, while acknowledging that such communication must occur within the requirements of the Open Meeting Law.
Motion by Helgeson seconded by Bailey to adjourn the meeting at 9:26 p.m. Motion carried 4-0-0.
Holli Gudknecht, Deputy Clerk
Donald Kirchmann, Mayor
