City Council Minutes 09-28-2026MONTICELLO CITY COUNCIL
REGULAR MEETING MINUTES
Monday, September 28, 2026 — 6:30 p.m.
Mississippi Room, Monticello Community Center
Present: Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz, Lee Martie
Absent: None
1. General Business
A. Call to Order & Pledge of Allegiance
Mayor Hilgart called the meeting to order at 6:30 p.m.
B. Minnesota Manufacturing Month Proclamation
C. Approval of Agenda
Motion by Councilmember Hinz to approve the agenda. Councilmember
Christianson seconded the motion. Motion carried unanimously.
D. Approval of Minutes
• Joint Meeting Minutes from August 10, 2026
• Special Meeting minutes from September 9, 2026
• Special Meeting minutes of September 14, 2026
• Regular Meeting minutes of September 14, 2026
Motion by Councilmember Hinz to approve the minutes. Councilmember
Christianson seconded the motion. Motion carried unanimously.
E. Public Service Announcement
• City Clerk Jennifer Schreiber noted the following announcements:
- Hydrant Flushing
- Data Center Public Hearing
- Absentee Voting
- Annual Winter Coat Drive
F. Citizen Comments
• Scott Cutsforth, 8634 Fairhill Lane. Mr. Cutsforth addressed the City Council
regarding political signage, e-bike safety, City debt, and the proposed data
center. He encouraged residents and candidates to avoid unnecessary
complaints regarding political signs and expressed concerns about e-bike
speeds on sidewalk and potential pedestrian safety issues. He also raised
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concerns about the City's debt and anticipated bonding for the Public Works
Facility. Lastly, he requested a moratorium on the proposed data center until
February 1, 2027, citing Xcel Energy's power study and the upcoming
election.
• Jenna Van Den Boom. Ms. VanDenBoom addressed the City Council
regarding concerns with the proposed data center, suggesting that
development be delayed until more advanced technologies become
available. She expressed concerns about potential impacts on property
values, utility costs, natural resources, public health and quality of life,
including air and noise pollution. She emphasized that residents and
businesses should not bear costs associated with the development and
requested greater transparency regarding anticipated tax revenue, job
creation, infrastructure investments, and potential risks. She also noted the
importance of public participation in the decision -making process.
G. Council Liaison Updates
• Economic Development Authority (EDA) — Councilmember Hinz noted that the
EDA met on September 23 at 7:00 a.m. The meeting included one discussion
item, which did not require formal action. The EDA reviewed the Downtown
Small Area Plan, with discussion focused primarily on Block 34 and the Cedar Fair
site. The EDA also received updates from the City Manager and Community
Development Director.
• Parks, Arts, and Recreation Commission (PARC) — Councilmember Gabler stated
that PARC met the previous Thursday at 8:00 a.m. The Commission conducted an
interview to fill an open Parks position and received updates from the Parks, Arts
and Recreation Director, Monticello Community Center, Park Maintenance, and
MontiArts.
H. Department Updates
• Construction Update — Public Works Director/City Engineer Matt Leonard gave
an update on current construction projects.
2. Consent Agenda:
Motion by Councilmember Christianson to approve the Consent Agenda.
Councilmember Gabler seconded the motion. Motion carried unanimously.
A. Approve the payment of bills. Action taken: Approved the bill and purchase
card registers for a total of $1,924,714.36
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B. Approve the new hires and departures for City departments. Action taken:
Approved the hires for the DMV and terminations for Parks department.
C. Approve the disposal of surplus City property. Action taken: No report this cycle.
D. Adopt Resolution 2026-86 accepting donations of $2,453 from the Minnesota
Municipal Beverage Association (MMBA) for Fire Department general use. Action
taken: Adopted Resolution 2026-86 accepting the donations.
E. Adopt Resolution 2026-93 appointing additional election judges for the
November 3, 2026 General Election. Action taken: Adopted Resolution 2026-93
appointing election judges.
F. Approve the appointment of Ben Anderson to the Parks, Arts, and Recreation
Commission. Action taken: Approved the appointment of Ben Anderson.
G. Set the Truth -in -Taxation public hearing for December 14, 2026. Action taken:
Approved setting the public hearing for December 14, 2026.
H. Adopt Resolution 2026-87 decertifying Tax Increment Financing District 1-24.
Action taken: Adopted Resolution 2026-87 decertifying TIF District 1-24.
I. Approve consent to plat application for preliminary and final plat of Otter Creek
91h Addition. Action taken: Approved consent to plat application for Otter Creek
9' Addition.
J. Adopt Resolution 2026-88 calling for a public hearing on October 26, 2026, for a
vacation of easements as legally described for portions of Otter Creek Crossing,
Otter Creek Crossing 1st Addition, Otter Creek Crossing 2nd Addition, Otter Creek
Crossing 3rd Addition and Otter Creek Crossing 7th Addition. Action taken:
Adopted Resolution 2026-88 setting the public hearing for October 26, 2026.
K. Adopt Resolution 2026-89 accepting bids and awarding contract for the Bertram
Chain of Lakes Regional Athletic Park (BCOL) Maintenance Facility Project to
Alliance Building Corporation in the amount of $1,154,135 and authorizing the
City Clerk to execute the contract. Action taken: Adopted Resolution 2026-89
accepting bids and awarding contract to Alliance Building Corporation.
3. Public Hearing:
4. Regular Agenda:
A. Consideration of adopting Resolution 2026-90 providing for the prepayment and
redemption of the City's General Obligation Bonds, Series 2015B and 2016A
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Finance Director Sarah Rathlisberger presented a proposal to call, or prepay, the
City's 2015B and 2016A bonds as part of the 2027 budget discussion. Both bonds
currently mature in 2030, and the outstanding maturities proposed for
prepayment carry a 3% interest rate.
The early redemption would occur on December 15, 2026, using existing debt
service fund balances along with transfers from current -year Liquor Store and
DMV profits. The City Council was asked to adopt a resolution authorizing the
call of the 2015B and 2016A bonds.
There was limited discussion among City Council.
Motion by Councilmember Christianson to adopt Resolution 2026-90 providing
for the prepayment and redemption of the City's General Obligation Bonds,
Series 2015B and 2016A. Councilmember Gabler seconded the motion. Motion
carried unanimously.
B. Consideration of adopting Resolution 2026-91 approving the City of Monticello
Economic Development Authority special benefit levy of $555,000 and accepting
the preliminary 2027 EDA general fund budget of $641,000
Finance Director Sarah Rathlisberger provided an overview of the 2027 budget
process and presented the preliminary HRA levy and EDA General Fund budget.
She reviewed the budget development process and noted that the preliminary
levy establishes the maximum amount that may be adopted for 2027.
Ms. Rathlisberger reviewed estimated changes in property values and tax
capacity, noting and overall projected increase of 6.78% in City tax capacity, with
the largest valuation increase occurring in commercial and industrial properties.
The proposed 2027 HRA levy is $555,000, representing a 10.1% increase from
2026, and the proposed EDA General Fund budget is $641,000. Ms. Rathlisberger
reviewed sample property tax impacts and summarized EDA initiatives
supported by the budget, including redevelopment, housing, business assistance,
and strategic land acquisition.
There was limited discussion among City Council.
Motion by Councilmember Christianson to adopt Resolution 2026-91 approving
the City of Monticello Economic Development Authority special benefit levy of
$555,000 and accepting the preliminary 2027 EDA general Fund budget of
$641,000. Councilmember Martie seconded the motion. Motion carried
unanimously.
C. Consideration of adopting Resolution 2026-92 setting the preliminary tax levy
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Finance Director Sarah Rathlisberger presented the proposed 2027 City property
tax levy of $16,020,000, representing a 5.83% increase over 2026. She reviewed
the City's long-term financial planning for the Public Works Facility, noting that
reduced capital levy needs, limited bond issuance, and the prepayment of
existing debt will help offset anticipated debt service costs. The proposed levy
includes operational increases, debt service, capital improvements, and tax
abatement funding.
Ms. Rathlisberger highlighted major budget increases, including employee
compensation, public safety, legal and consulting services, equipment,
infrastructure maintenance, and natural resource conservation. She also
reviewed estimated property tax impacts, noting that a median -valued
residential property of $325,000 would see an estimated $13 annual increase in
the City portion of property taxes.
Councilmembers expressed appreciation for the comprehensive budget process
and recognized the efforts of staff and previous Councils in planning for major
capital projects. Discussion emphasized the City's long-term financial planning,
responsible debt management, and efforts to minimize taxpayer impacts while
addressing future infrastructure needs.
Motion by Councilmember Martie to adopt Resolution 2026-92 setting the
2027 preliminary tax levy a5 $16,020,000. Councilmember Christianson
seconded the motion. Motion carried unanimously.
D, Consideration of City comment on a request for rezoning from General
Agricultural (AG) to Agricultural/Residential (A/R) for Rural Planned Unit
Development Overlay in the Monticello Orderly Annexation Area
Community Development Director Angela Schumann presented a request for
City Council comment on a proposed rezoning of approximately 84 acres within
the Monticello Orderly Annexation Area (MOAA) to allow for future rural
residential development. She noted that staff recommended opposing the
rezoning, citing inconsistencies with the City's 2040 Comprehensive Plan, future
transportation and utility planning, and the MOAA's purpose of preserving land
for urban development. She acknowledged the potential for limited rural
residential development in the MOAA under appropriate circumstances and
recommended continued discussion and planning.
Mayor Hilgart expressed support for continued discussions with the Township
and Joint Powers Board to identify potential areas within the MOAA suitable for
larger -lot residential development, particularly in areas with desirable amenities
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or limited access to municipal services. He noted that such development could
attract higher -value homes, increase the tax base, and benefit local schools and
businesses.
Councilmembers expressed interest in exploring these opportunities while
ensuring consistency with long-term transportation and infrastructure planning,
including the potential future interchange and river crossing. Ms. Schumann
noted that the Council could include direction in its motion encouraging the Joint
Powers Board to continue discussions regarding appropriate locations for rural
residential development within the MOAA.
Motion by Councilmember Christianson to recommend denial of the proposed
rezoning request and encourage continued discussions with the Joint Powers
Board to identify appropriate areas for rural residential development within
the MOAA, while preserving the City's long-term land use and infrastructure
planning goals. Councilmember Gabler seconded the motion.
E. Consideration of City comment on a request for rezoning from General
Agriculture (AG) to General Business (B-2) in the Monticello Orderly Annexation
Area
Angela Schumann presented a request for City Council comment on the
proposed rezoning of a 21.75-acre parcel owned by Quarry Community Church
within the Monticello Orderly Annexation Area (MOAA) to accommodate a
commercial daycare facility. She noted that staff recommended opposing the
rezoning from General Agriculture to General Business, citing inconsistencies
with the City's 2040 Comprehensive Plan and concerns about establishing a
precedent for future commercial development within the MOAA. As an
alternative, staff recommended amending the General Agriculture zoning district
to allow childcare facilities as an accessory use to a church through an interim
use permit, while retaining the property's existing zoning.
There was minimal discussion among City Council.
Motion by Councilmember Gabler to recommend denial of the request for
rezoning of the subject parcel within the MOAA from General Agriculture to
General Business B-2, based on the findings in the report, and to recommend
an amendment to the MOAA ordinance to allow daycare uses as an accessory
use in church facilities by Interim Use Permit. Councilmember Christianson
seconded the motion. Motion carried 4-0, with 1 abstention. Councilmember
Hinz abstained as the church is her place of worship.
5. Adjournment:
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The meeting was adjourned at 7:36 p.m.
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Jennifer Schreiber
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Attest:
City Administrator
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