Pursuant to due call and notice thereof, a City Council Meeting was duly held in the City Council chambers at 7:00 p.m. on the 8th day of September 2026. The meeting was called to order by Mayor Kirchmann.
The following members were present: Council Members Don Kirchmann, Lee Sjolander, Deanna Gard, Kim Helgeson
Absent: Mary Bailey
Also, present: City Administrator Scott Lehner, Engineer Derek Olinger, Attorney Scott Riggs, Administrative Assistant Holli Gudknecht, Heather Dewitz, Doug Henke, Diane Barrett, Sue Dodds, Michelle Kreisler, Katie Orr, Peyton Temple, Pete Wagner, Dan Wagner, Ron Peterson, Todd Kieffer, Officer Armani Tucker, Tiffany Rico, Joseph Rico, Matt Bartel, Andy Grice
Via Zoom: Jessi Sturtz, Macie Stevermer, Jean McGann
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
Doug Henke stated he had three questions with the budget. First, he asked why the council was allowing public works employees who make $40 per hour to mow grass. Second, almost fifty percent of the yearly budget goes to wages/benefits. He feels the council should consider freezing payroll wages for one year. Third, the boulevard of roses is a disaster. He suggested getting a committee to help or take it over. Also, the fire department should contribute money along with other volunteers.
Tiffany Rico stated she got involved when she heard about the Kenyon Market being sold. She suggested possibly forming a food co-op to save the market.
Dan Wagner stated he and his son, Pete, are trying to sell the Kenyon Market. He was wondering where the city stands on this? Could the city possibly help with the parking lot drainage problem or would KMU give a cost break for electricity for the new owner? Any help from the city would be very important to a new owner.
Katie Orr expressed concerns about the potential new apartment building. She felt safety and security may be jeopardized with the type of people these apartments may bring in. She didn’t feel this town needs this type of expansion. She ended with her dad, Mike Engel’s quote, “be loyal, buy local”.
ADOPT AGENDA
Motion by Sjolander seconded by Helgeson to approve the agenda. Motion carried 4-0-0.
CONSENT AGENDA
Motion by Sjolander second by Kirchmann to approve the Consent Agenda, which includes:
Resolution 2026-32: Authorizing a Transfer from the Capital Outlay Fund 202 to the Fire Fund 203 in the amount of $90,000
Financials and Payment of check numbers, 78495 through 78600; 7567E through 7637E
Minutes of August 6, 2026
Motion carried 4-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
Proclamation in Recognition of Domestic Violence Awareness Month
Mayor Kirchmann read the proclamation and declared October as Domestic Violence Awareness Month.
DEPARTMENT HEAD UPDATES
Todd Kieffer – EDA Report
Kieffer updated the council on projects that are being worked on including: the industrial park lot, Habitat for Humanity House, Depot Park Building, vacant storefront ideas, and façade improvement projects.
Wayne Ehrich – Public Works and Fire Dept.
Lehner read the public works and fire department updates. Street sweeping is being done throughout town, and the sand is being screened for winter. The fire department is short five members with interviews for new members scheduled for next week.
Jeff Sjoblom – Police Chief
Officer Tucker presented the police department update. The police department is approaching one year of being short of a full-time staff member. An E-bike has been purchased for patrol in the city.
Randy Eggert – KMU
No Report.
Other
Matt Bartel, Liquor Store Manager, stated there were 672 paid admissions to the Rose Fest Street dance. Two thousand dollars was saved by not having to rent a tent. The new off sale is going well. He is seeing many new faces coming in. Some samplings are being planned for Fall Fest.
ADMINISTRATOR UPDATE
Kenyon Market
Administrator Lehner stated he talked with Dan and Pete Wagner. They reviewed several possible options to help the Kenyon Markets new buyer.
Police Department Staffing Update
Lehner stated that Officer Tucker already covered the police department staffing in his update.
KMU Staffing Update
Lehner stated that Blake Waltman was offered the Lineman/Water Operator position. He will start on September 14.
Administrative Assistant Update
Lehner stated that six applications were received for the administrative assistant position. Four candidates will be interviewed on September 16.
Update on Loan from KMU
Lehner stated that the KMU Commission agreed to borrow the city $350,000 to purchase land on the south side of Kenyon for future development. KMU offered a ten-year loan at two percent interest.
CEDA-Todd Kieffer
Lehner stated that Todd Kieffer will be retiring at the end of January 2027. He is currently in Kenyon two days a week.
Property in Trondheim
Lehner stated that a complaint had been received about a residence in Trondheim. The complainant stated there are piles of branches along the curb, vehicles with expired registration, junk, and other ongoing issues. The city is addressing this complaint.
ENGINEERING
2025 Street & Utility Project
Engineer Olinger stated that the majority of this pay estimate is the partial release of retainage. The contractor plans to return in October for final paving and completion of all remaining work.
2025 Street and Utility Improvements – Fitzgerald Excavating & Trucking -Pay Application No. 9
Pay request No. 9 includes work completed through September 2, 2026.
Motion by Helgeson seconded by Gard to approve pay application #9 to Fitzgerald Excavating in the amount of $68,602.38. Motion carried 4-0-0.
Lead Service Line Replacement Project-Design Scope & Fee
Engineer Olinger stated that scope and fee for the lead service line replacement was approved by the KMU Commission on August 25. The commission is recommending approval by the city council. Public Facilities Authority currently has a program offering a 100% grant for the replacement of lead and galvanized services that have been identified in the city.
Motion by Kirchmann seconded by Helgeson to approve the scope and fee for the lead service line replacement project. Motion carried 4-0-0.
Kenyon Crossings Development Applications
Engineer Olinger stated that this development agreement is required for development of the Kenyon Crossings Development. He also reviewed the required variances. The Planning Commission held a public hearing on September 1. The commission recommended approval of the plat and variances. Attorney Riggs explained all the needed resolutions.
Contract for Private Development for the Rebound Project
Sub-Grant Agreement for the Rebound Project in Kenyon
Developers Agreement for Kenyon Real Estate 2
Resolution 2026-33: Approving Contract for Private Development, Sub-Grant Agreement and Developers Agreement with Kenyon Real Estate 2, LLC for Certain Property in the City of Kenyon
Motion by Helgeson seconded by Sjolander to adopt Resolution 2026-33. Motion carried 4-0-0.
Resolution 2026-25: Approving Preliminary Plat of Kenyon Crossings
Motion by Sjolander seconded by Kirchmann to adopt Resolution 2026-25. Motion carried 4-0-0.
Resolution 2026-26: Approving a Parking Variance of Lot 1 Block 1 Kenyon Crossings Subdivision
Motion by Helgeson seconded by Gard to adopt Resolution 2026-26. Motion carried 4-0-0.
Resolution 2026-27: Approving a Residential Density Variance of Lot 1 Block 1 Kenyon Crossings Subdivision
Motion by Gard seconded by Kirchmann to adopt Resolution 2026-27. Motion carried 4-0-0.
Resolution 2026-28: Approving a Front Yard Setback Variance of Lot 1 Block 1 Kenyon Crossings Subdivision
Motion by Helgeson seconded by Gard to adopt Resolution 2026-28. Motion carried 4-0-0.
LEGAL
OLD BUSINESS
2027 Budget Update
Jessi Sturtz from Abdo summarized some key items for consideration in this year’s budget. The proposed 2027 budget increase started at 19.5% but is now down to 9.26% by eliminating some pool, streets, and police department items. The preliminary maximum levy certification resolution must be submitted to Goodhue County by the end of September. The final levy must be adopted by the end of December. The levy can be lowered between now and the end of the year, but it cannot be increased.
Resolution 2026-31: Adopting the 2027 Preliminary Budget & Levy
Motion by Helgeson seconded by Gard to adopt Resolution 2026-31 adopting the 2027 preliminary budget and levy, which is a maximum of 9.26%. Motion carried 4-0-0.
Set the Truth in Taxation Meeting for December 1 at 6:30 p.m.
Motion by Helgeson seconded by Gard to set the Truth in Taxation meeting for December 1 at 6:30 p.m.
Motion carried 4-0-0.
NEW BUSINESS
Depot Park Concrete Project
The EDA is recommending approval of Lexvold Construction’s quote to install a concrete apron around the Depot building. Replacement of the concrete will provide a safer and more accessible walking surface for people of all ages, along with installation of an approved accessible ramp entrance at the southeast door of the Depot Park building, at a cost not to exceed $9,980. Most of the funding for the project will come from the $9,500 in remaining funds received by the Kenyon EDA through
participation in the University of Minnesota Design Center Emerging Small Minnesota Communities Program.
Motion by Helgeson seconded by Gard to approve the quote from Lexvold Construction for the concrete work at Depot Park not to exceed $9,980.00, contingent on what will be done with the existing pavers. Motion carried 4-0-0.
Abdo vs. Internal Finance Director
Administrator Lehner presented the cost of Abdo’s proposed services for financial solutions, human resources, and payroll versus the cost of an internal finance director. The cost of Abdo’s services was $164,800 and the cost of hiring a full-time finance director was $167,100 annually. Lehner’s recommendation was to continue to use Abdo.
Motion by Gard seconded by Helgeson to approve the contract with Abdo for a period of three years. Motion carried 3-1-0 with Sjolander voting nay.
Creative Planning Audit Presentation
Andy Grice from Creative Planning clarified the pension liability questions from the 2025 audit. GASB 68 is an accounting rule for state and local governments that makes pension obligations more transparent. Its main purpose is to show the true cost of pension promises made to employees and show any unfunded portion of the obligation as a long-term liability. Accounting Adjustments do not impact cash balances – rather accounts for the long-term liability associated with pensions with the offset to pension expense. Net Pension Liability in the City’s financial statements is the proportionate share of the state-wide net pension liability. Each opinion unit (fund) that reports on a full accrual basis of accounting reports its proportionate share of that liability. The adjustment to this liability is offset against the various pension reporting elements
Schedule of Upcoming Meetings
KMU Meeting: Tuesday, September 15th @ 3:00 p.m.
EDA Meeting: Tuesday, September 22nd @ 8 a.m.
City Council Meeting: Tuesday, October 13th @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Council Member Sjolander thanked everyone who took part in Rose Fest. There were 329 cars at the car show, and many positive comments were received. He also stated that with the small city climate change, he would love to see people be kind to one another.
Council Member Helgeson thanked everyone for coming out to enjoy Rose Fest. Next up is Fall Fest on October 10.
Mayor Kirchmann thanked the public for attending the meeting.
Motion by Helgeson seconded by Sjolander to adjourn the meeting at 9:46 p.m. Motion carried 4-0-0.
Holli Gudknecht, Deputy Clerk
Donald Kirchmann, Mayor
