--- ## author: Gina Wolbeck date: D:20260514134453-05'00' --- ## 1) CALL TO ORDER ## 2) ROLL CALL ## 3) PROPOSED AGENDA ## 4) BUSINESS ## 4A. Discuss Smith Trust Assessment and Easement Recommendations ## 4B. Sherburne County Organics Drop-off Program Discussion ## 4C. Discuss Amendment to Farmers Market Vendor Fee ## 5) OTHER ## 6) ADJOURN ## THE MAY 20, 2026 COUNCIL WORKSHOP WILL ADJOURN BY 6:00 P.M. FOR CITY OFFICIALS TO ## ATTEND A RECEPTION RECOGNIZING THE 2026 OUTSTANDING CITIZEN OF THE YEAR BEING HELD IN ## THE BIG LAKE SENIOR ACTIVITY CENTER. Disclaimer: This agenda has been prepared to provide information regarding an upcoming work session of the Big Lake City Council. This document does not claim to be complete and is subject to change. ## AGENDA ## BIG LAKE CITY COUNCIL WORKSHOP ## COUNCIL CHAMBERS ## MAY 20, 2026 5:00 p.m. ## Prepared By: ## Hanna Klimmek, City Administrator ## Meeting Date: 5/20/2026 Item No. ## 4A ## Item Description: ## Smith Trust Assessment and Easement ## Recommendations Reviewed By: Deb Wegeleben, Finance/HR Director & ## Layne Otteston, City Engineer Reviewed By: Finance/Public Building Planning ## Committee (Mayor Paul Knier & Councilmember Ken Geroux) ## COUNCIL DIRECTION REQUESTED Staff requests that the City Council discuss the recommendations and provide consensus/direction to staff. ## BACKGROUND/DISCUSSION ## 429 Assessment Recommendation On June 19, 2025, the Smith Trust submitted a formal petition requesting improvements to Minnesota Avenue. The proposed improvements include grading, drainage, and installation of street, utility, and lighting infrastructure. The Smith Trust has requested that the total project cost be assessed to the benefitting property through the City’s 429 Assessment process and has agreed to pay the full cost as approved by the City of Big Lake. Under the 429 Assessment process, the City Council must approve and initially fund the project. The cost is then assessed to the benefitting property, with the option for deferred repayment. The assessment is repaid to the City either upon sale of the property or after a deferral period of up to ten years, whichever occurs first. Per the City’s Special Assessment Policy, assessments for projects financed through debt issuance are charged an interest rate equal to one and one-half percent (1.5%) above the net interest rate of the bond issue. However, because this project is not anticipated to be funded through debt issuance, the City Council must establish the assessment interest rate. For reference: • The 2024 and 2025 Street Projects, which were not funded through debt issuance, established an assessment interest rate of 4.00%. Additional information for Council consideration includes: • Current bond rate: 3.10% (resulting assessment rate would be 4.5% under policy) • Current investment rate: 3.649% The 429 Assessment Agreement is scheduled for City Council approval on November 18, 2026, alongside the remaining …

--- ## title: BIG LAKE CITY COUNCIL author: Administrator date: D:20260618135019-05'00' --- ## Big Lake City Council Workshop Minutes Date: May 20, 2026 Page 1 of 3 ## BIG LAKE CITY COUNCIL ## WORKSHOP MINUTES ## MAY 20, 2026 ## 1. CALL TO ORDER Mayor Knier called the meeting to order at 5:00 p.m. ## 2. ROLL CALL Council Members present: Ken Geroux, Paul Knier, Kim Noding, and Paul Seefeld. Council Member absent: Ken Halverson. Also present: City Administrator Hanna Klimmek, City Clerk Gina Wolbeck, Finance Director Deb Wegeleben, Community Development Director Marie Popp, City Engineer Layne Otteson, Police Chief Sam Olson, Liquor Store Manager Greg Zurbey, Streets/Parks/Fleet Superintendent Norm Michels, Water/Wastewater Superintendent Dan Childs, and Big Lake Student Liaison Adelyn Gosewisch. ## 3. PROPOSED AGENDA Council Member Geroux motioned to adopt the proposed Agenda as presented. Seconded by Council Member Noding, unanimous ayes, Agenda adopted. ## 4. BUSINESS ## 4A. Discuss Smith Trust Assessment and Easement Recommendations Hanna Klimmek presented a request from the Smith Trust for the Minnesota Avenue improvements, including grading, drainage, and installation of street, utility, and lighting infrastructure, with project costs to be assessed to the benefitting property through the City’s 429 Assessment process. Because the project will not be financed through debt issuance, Council discussion is needed to establish the assessment interest rate. The Finance Committee recommended repayment upon sale of the property or after a ten-year deferral period, whichever occurs first, with a 4.00% interest rate. Deb Wegeleben reviewed annual interest rates and Council’s option to defer both principal and interest, or to require annual interest payments. Mayor Knier stated he is not a fan of giving an additional 5 years to pay back the assessment. Knier also noted if this land sells, the entire assessment amount would be due at the time of sale. Knier discussed the finance committee met with Steve Smith but there wasn’t discussion about interest being due each year. Knier stated he prefers to have the repayment align with state statute which only defers the principal, rather than having principal and interest deferred throughout the term of the assessment. Wegeleben reviewed if we follow statute, interest would be added to his property taxes each year. Knier asked if we decide to defer the interest, would there be interest charged on interest. Wegeleben explained when interest is deferred, it is like they make a payment so overall he is still only going to pay $93,000 interest on the $395,000 so we wouldn’t be earning interest on interest. Council Member Geroux ## Big Lake City Council Workshop Minutes Date: May 20, 2026 Page 2 of 3 recommended the agreement be presented as written, with interest payments made annually. Geroux noted if Smith requests it, …