It's one of our core values to make sure that we are good partners in the communities in which we operate. Public safety is obviously something that's very important to us, and so we're thrilled to be able to partner with you guys.”

Eric Bohnert, general manager of Marathon's St. Paul Park refinery

A clean audit, recognition of a major public safety grant from Marathon Petroleum and approval of several infrastructure-related projects highlighted the St. Paul Park City Council's July 20 meeting.
The council also unanimously approved the removal of City Administrator Hugo McPhee from probationary status, citing his leadership during his first year with the city, while hearing an overview of the city's 2025 financial condition that showed healthy reserves and declining long-term debt.
The meeting opened with recognition of Marathon Petroleum for an emergency medical services grant In the amount of $52,800 that city officials said will significantly improve emergency response capabilities.
Mayor Keith Franke thanked Marathon for its continued partnership with the city, saying the funding will be used to train police officers and firefighters to emergency medical services standards.
"This money is going to be used...to train up all of our public safety personnel, police and fire, to the level of EMS," he said. "This is a big deal for our city and for our partnering and neighboring cities. I believe using these funds in this way is going to help save lives."
Franke also praised Marathon's relationship with the city, saying communication between refinery management and city officials has never been stronger during his years of involvement with St. Paul Park.
Eric Bohnert, general manager of Marathon's St. Paul Park refinery, said supporting public safety aligns with the company's priorities.
"We appreciate the opportunity to be involved in our community," he said. "It's one of our core values to make sure that we are good partners in the communities in which we operate. Public safety is obviously something that's very important to us, and so we're thrilled to be able to partner with you guys."
Following the presentation, the council approved meeting minutes before briefly postponing the scheduled audit presentation when the accounting firm's representative had not yet arrived.
The council unanimously approved a consent agenda containing routine business and several notable items.
Among the actions were the following:
• Approval of bills.
• Acceptance of commission meeting minutes.
• A resolution recognizing second-quarter donations to the city.
• Removal of City Administrator Hugo McPhee from probationary status effective July 28.
• Approval of a lawful gambling premises permit.
• Temporary liquor licensing for the St. Paul Park-Newport Lions Club during Heritage Days.
• Approval of $57,161 in repairs and mixer replacement work at the Broadway water tower.
• Payment requests for the Lions Levee Park pedestrian bridge replacement and the Third Street reconstruction project.
• Awarding $8,000 in Pollinator Pathway grants for Abdella Park and the City Hall community garden.
• Approval of an amendment to the Washington County Records Management System Joint Powers Agreement.
Before the vote, Council Member Jeff Swenson praised McPhee's performance.
"The administrative committee is excited to have Hugo McPhee here," Swenson said. "He performed exemplary during his probationary period, and we're excited to take him off."
Council Member Conrad echoed that praise, crediting McPhee for helping guide the city through significant progress over the past year.
"I hear it all the time at the car show," Conrad said. "People compliment what's gone on. Our city's made huge strides, and I think that you being kind of one of the first hires with this transition, I think you're very creditable for that."
McPhee thanked the council for its confidence.
During discussion of the consent agenda, Conrad sought additional information about two infrastructure projects.
McPhee explained that repairs to the Broadway water tower involve a mixer whose impeller was damaged during a previous ice event. The issue has appeared during two separate inspection cycles, prompting staff to recommend completing repairs before winter.
He said the work includes interior touch-up painting and repairs to the mixing equipment but has had no impact on water quality.
Council Member Jeff Haggerty noted the equipment has been in service since about 1990, giving it a lifespan of approximately 36 years.
Conrad also asked about reports that concrete supporting the new pedestrian bridge at Lions Levee Park required correction.
McPhee said engineers determined the bridge's concrete support pad did not conform to original specifications.
"WSB is working with that subcontractor to correct that," McPhee said, adding that reimbursement has not yet been sought until the issue is resolved.
After completing other business, the council returned to its postponed financial presentation when Jill Schultz arrived from accounting firm CohnReznick
Schultz explained that Smith Schafer, the city's longtime auditing firm, merged with CohnReznick earlier this year, although the audit team remained the same.
Schultz reported the city received an unmodified, or "clean," audit opinion for 2025.
"Our job as auditors is to provide reasonable assurance that the city's financial statements are materially correct," she said. "We issued what's called an unmodified opinion or a clean opinion."
She also reported auditors found no Minnesota legal compliance issues involving contracting, conflicts of interest, public funds or other required testing.
Among the financial highlights presented were the following:
• Property tax revenue increased about seven percent in both 2024 and 2025, growing from approximately $2.35 million in 2021 to just over $3.03 million in 2025.
• Local Government Aid totaled nearly $800,000 during 2025.
• The city's general fund reserve stood at approximately $1.6 million, equal to about 45 percent of annual expenditures, well within the Minnesota State Auditor's recommended range of 35 to 50 percent.
• Outstanding long-term debt totaled approximately $3.9 million at year-end and, absent additional borrowing, is projected to be fully retired by 2035.
Schultz noted that major capital expenditures during 2025 included the Third Street reconstruction project, a new squad vehicle and a new public works vehicle.
She also discussed the city's enterprise funds, explaining that water and sewer operations largely function like businesses supported by user fees rather than property taxes.
Franke asked whether the city's water and sewer operations were generating significant income.
Schultz said depreciation expenses make the financial picture appear weaker than actual cash flow, but acknowledged the utilities are not accumulating substantial reserves because future equipment replacement costs remain significant.
Commission updates were relatively brief.
Haggerty reported the Public Works Commission still has one vacancy and has changed its meeting time to 3 p.m. beginning with its Sept. 1 meeting.
Swenson said the Public Safety Commission has no openings and will next meet Sept. 3.
Conrad reported the Planning Commission canceled its previous meeting because there was no agenda and will next meet Aug. 10. He also provided an update on Heritage Days, scheduled Aug. 14-16, highlighting community events including the parade, car show, Touch-a-Truck activities, tractor pull and weekly fundraising meat raffles benefiting the festival.
Council Member Charlene Whitbred-Hemmingson reported the community garden has donated more than 100 pounds of produce to Basic Needs and announced Movie Night in the Park is scheduled for Aug. 3.
Franke concluded by encouraging residents to attend Night to Unite on Aug. 4 at Heritage Park, where the city's Community Market will relocate for the evening as part of the festivities. He again congratulated McPhee, calling him "a tremendous leader for the staff" and thanking him for his work during his first year with the city.