A special meeting of the City Council of the City of International Falls, Minnesota was held in the Council Chambers of the Municipal Building on the 23rd day of June 2025 at the hour of 5:30 P.M.
MEMBERS PRESENT: Mayor Dill and Councilors Buller, Holden, Kalar and Wegner
MEMBERS ABSENT: None
| APPROVED recommendation to award 2025 Mill and Overlay of Stenberg Addition and Library and City Hall Parking Lots project to KGM Contractors, Inc. | MOTION by Councilor Buller to approve recommendation to award the 2025 Mill and Overlay of Stenberg Addition and Library and City Hall Parking Lots project to KGM Contractors, Inc. for $1,340,098.75. Motion seconded by Councilor Holden and carried unanimously. |
| APPROVED recommendation to award 2025 9th Street Reconstruction project to Wagner Construction | MOTION by Councilor Buller to approve recommendation to award 2025 9th Street Reconstruction project to Wagner Construction for $6,993,368.45. Motion seconded by Councilor Wegner and carried unanimously. |
| 2024 Audit Presentation – Ryan Schmidt, Schlenner Wenner & Co. | Ryan Schmidt presented the audited financial statements for the fiscal year ending December 31, 2024.
Schmidt noted that the city received an Unmodified (clean) Opinion on the 2024 audit. Schmidt stated the audit went smoothly and was pleased with the positive working relationship with Management. Nothing unusual was noted in terms of recorded transactions or accounting policies/treatments.
Schmidt explained for the public the audit process including the sampling of transactions, required communications, review of internal controls over financial reporting, and review of legal compliance.
Schmidt noted the decrease in the General Fund by $278,265. Schmidt had concerns with the negative cash balance in the Ambulance fund, noting steps should be taken to address the negative balance. |
| APPROVED 2024 Annual Audit as prepared by Schlenner Wenner & Co | MOTION by Councilor Kalar to approve the 2024 Annual Audit as prepared by Schlenner Wenner & Co. Motion seconded by Councilor Holden and carried unanimously. |
| AUDIENCE | Allen Kruse, 8741 E Obispo Ave, Mesa, Arizona, former International Falls’ resident raised concerns about the City’s use of LGA to offset such a large part of the City’s operating budget and the risk in the event LGA is reduced by the State. Kruse also noted that he believed that there should be an ambulance taxing district in place and City residents should not be forced to subsidize the County’s portion of the ambulance service as well as the City’s. |
| Sharon Ball, 120 Cedar Road, addressed the Council expressing concern and frustration regarding alleged derogatory remarks from the February 18, 2025 City Council meeting and criticized how it was handled. Ms. Ball also inquired as to whether the City needed to expedite the approval of the Water Treatment Plant Rehabilitation project due to lack of cash for an impending bond payment. Finance Officer Rud explained that the note payable due in 2025 was included in the 2025 budget and would be paid regardless of the Water Treatment Plant Rehabilitation project had moved forward. | |
| Joe Kantor, 1607 13th Avenue W, inquired about the removal of the berm around the Water Treatment Plant. Director of Public Works Brokaw explained that a temporary berm was constructed around the Water Treatment Plant as a result of the 2022 Flood with the help of the Army Corps of Engineers. Brokaw explained that the Army Corps of Engineers required the temporary berm to be removed due to it not being engineered for permanent placement and FEMA paid for the removal of the berm. Brokaw further explained that the clay was locally sourced and after the berm was removed it was repurposed to close out the demolition site to save on additional costs. Brokaw explained that he is working to find other sources of funding like USDA to secure financial help with installing engineered permanent flood control measures. | |
| Emma Rud, Finance Officer, thanked Ryan Schmidt and the Schlenner Wenner team for the audit presentation and smooth audit process. Rud reiterated that the City received a clean audit opinion and stated she hoped the false insinuations and spread of misinformation about accounting practices would stop now that those claims were deemed unfounded by an independent third party. Rud cautioned those spreading suspicion and misinformation noting it fuels a narrative not based on fact and undermines confidence in local government finance. | |
| ADJOURNMENT | Mayor Dill adjourned the meeting at 6:52 P.M. |
Drake Dill, Mayor
ATTEST:
Betty Bergstrom, City Administrator
