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The city of Lindstrom needs to confront some potentially costly operational concerns and discussions began in earnest last week during a workshop on the 2025 budget and debt.  The main questions are: does the city council tolerate borrowing to address looming capital needs and will the council grant approval to start an in depth analysis of priorities?

On the second question— council did direct staff to pencil in a public works operations/storage study,  and also an analysis of how to use square footage at the existing city hall,  as an alternative to constructing a new building for Lakes Area Police needs.

Mayor Judy Chartrand said this is doing what’s best for the police and for the citizens.  The wild card is whether Chisago City members on the police commission come on-board.

Next year’s Lindstrom budget and levy are taking shape (numbers are adopted as preliminary in September) The early direction from council to staff is to reduce the estimated 12 percent increase to a single digit hike.   

Lindstrom is looking to add a fifth public works employee and is taking over emergency call-outs and sewer maintenance chores that a private wastewater contractor (Veolia) is no longer providing to the city.

In addition, the matter of a satisfactory Lakes Area Police facility must be resolved.  

The state legislature did not act on awarding bond proceeds funding that would have made this project financially feasible.  The police commission applied for $4 million in state aid for a new LAPD facility and the cities were to chip in $2 million a piece.

From discussions last week it appears a majority of Lindstrom Council members do not support that plan as presented to the legislature.  The  $8 million law enforcement center is proposed in Chisago City— designed to be 18,000 square feet by the Lakes Area police commission.  This Lindstrom council discussion last week,  was convened to draft a statement to the commission—clearly stating another preferred course of action.  

With Council member David Waldoch opposed, Lindstrom leaders agreed to inform Chisago City it wishes to look into re-habilitation of police department space at Lindstrom City Hall.  

The police commission had scheduled a special session for July 31 to resolve the next steps,  expecting the recommendation coming to the commission.  (Story from this next week.)

Lindstrom has two new LAPD representatives — Mayor Judy Chartrand and Council member Brian Norelius —who have pushed options to the plan developed by the police commission.

Chisago City is represented on the commission by Marie Rivers and Jeremy Dresel. Its mayor Bob Gustafson passed away in July.  Chisago City fully supports the existing plan and donated the property, already serviced with utilities,  at no charge.  

The two cites each fund half the expenses for Lakes Area Police. 

The plan pursued over the last several years,  under different Lindstrom Mayors and police commission membership,   developed a new public safety center project for $8 million,  next to the Chisago City Fire Station on Karmel Avenue. 

Council member Norelius stated his frustration that Chisago City seems  intractable,  and rejects suggestions to re-negotiate this project.  He and Mayor Chartrand also questioned the size and pricetag for the new facility  

If the new building does get built in Chisago City,  Norelius says many years down the road, if the cities were to dissolve the combined police department, the city of Lindstrom would have no facility.

Council member Greg Krueger (also a newcomer to office) added his concern the re-use of Lindstrom city hall space was most “cost effective” but had not been investigated adequately, he felt. 

Council member Waldoch worried, however, that there will be unknown financial strings attached if the city hall and community center are co-opted by law enforcement uses. Where does city administration functions relocate to?  

Would a smaller $4 million facility (minus state aid) suffice on the Chisago City land as a compromise?  He noted Chisago has developed an impound lot there already.

Waldoch declared Lindstrom is not going to “donate” city hall and doubted the police commission would even consider purchasing half the building.

Lindstrom City Administrator Dan Undem, who is also relatively new to this issue having recently succeeded John Olinger in Lindstrom, presented early numbers for debt service.  

Council needs to find a level of borrowing that it supports. “What matters is your appetite for debt,” Administrator Undem advised.

The 20 year life of a bond at 3.8 percent interest covering $2 million is estimated at $145,000 annually. Taking this to $4 million calls for debt service of almost $300,000 annually.

Another concern is re-drafting the agreement creating the Lakes Area Police Commission,  which will need to coincide with terms and conditions of any new debt.

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