After hearing concerns from City Attorney Darrel Huenergardt about current policy and possible changes, the Kimball City Council agreed to draw up a policy regarding the extension of utilities to newly annexed areas at their regular city council meeting Wednesday night.The policy will not set a price on how much it will cost for newly annexed land owners to hook on to city utilities, rather it will direct the city to provide utility lines to the lot lines of the annexed properties. When it came to cost of utility hook ups, Council Member Scott Haun said he is against charging existing utility consumers an inflated rate to cover the cost of the new hook ups. City Council currently wants to pay for the extension of utilities to the annexed properties.Rick and Ann Perry, annexed property owners, expressed their concerns about being forced to pay for it. The Perrys said they did not want to be annexed and didn’t feel they should be forced to pay for utility extensions. Council member Kim Baliman echoed their sentiment saying that she is uncomfortable strong arming annexed property owners into this fee.Ann Perry asked if there was a current policy in place regarding the extension of utilities. Fielding the question, City Administrator Harold Farrar said the current policy states that the consumer who benefits from it has to shoulder the cost burden. After agreeing to have Huenergardt draw up the policy on extension to lot lines, the council agreed to “get something down on paper” before discussing cost. Public HearingCouncil convened a public hearing at 6:05 regarding a resolution that would allow for the rezoning of districts within the city limits. The resolution would allow for some retail sales in areas zoned for heavy construction, light and heavy industrial.“We have had a couple of request in the last year so we thought there was a need for it,” said Farrar.The administrator explained that with this resolution manufacturing businesses in theses areas would be allowed to sell the product they manufacture so long as their retail space does not exceed 25 percent of their business. These businesses would be allowed to apply for a permit allowing the sale. The type of permit they would need would be based upon the what they are selling.The two types of permits are “limited use” which allows for the sale of goods manufactured on site as well as goods used in conjunction with the said manufactured goods. A conditional use permit would allow for the sale of other goods not manufactured, or used with goods manufactured, on site.The council approved the resolution 4-0 by title only waiving the three readings. Seal Coating BidsFarrar said that seal coating is done every year on the streets as prevention. This year they have chosen which streets need to be done and have received two bids. Farrar suggested that the council accept the bid from Topkote, from Yankton, South Dakota, for 54,799.20.The includes sealing of 20,050 sq. yards of streets as well as 620 sq. yards in the cemetery.Farrar suggested that the city pay Topkote the $45,000 that was already budgeted for the project now and the remaining balance after Oct. 1. He said by doing this it wouldn’t cause any problems with the current street department budget. Council Member Ann Warner asked if the city currently has the money to pay the entire balance now.Farrar said they did but it was a matter of throwing off the budget. He said paying the entire balance now wouldn’t hurt the city, they just like to keep the budget as close as possible and this will throw it over. Warner recommended that the full balance be paid now. After making a motion the rest of the council agreed. Keno GrantSpeaking for his son, Max Williams, Tom Williams made a request for a keno grant in the amount of $1,440.Williams said Max was working towards his Eagle Scout and has been approached about making a pathway at the Arboretum. Williams explained that the cost of supplies for the job is $780. The remaining sum is labor and equipment.The hopes is that in kind labor would be donated to lower the actual monetary costs, said WIlliams. The in kind labor would come from volunteers as well as equipment donation. Williams, while reading from Max’s proposal, said the project would benefit anyone who would come to the Arboretum,. Haun made a motion to grant the funds up to $1,440. He along with the rest of the council wished Max the best of luck in completion. Motion passed 4-0.Speed LimitKimball Police Officer Jessica Price requested the changing of the speed limit in the area in front of Mary Lynch Elementary and the swimming pool.Price said that children are present in the area from dawn till dusk and she has concerns for their safety. By decreasing the speed limit to 15 mph for that zone, which is already designated as a school zone, would increase the safety of kids in the area. Police Chief Doug Provance said Price’s idea holds merit. He agreed that there are kids there all the time.After some discussion about speed limit and time, Council Member James Schnell recommended changing the speed limit to 15 mph between the hours of 7-5. Schnell said to try this and if it needed to be changed they could address it at a later date. Liquor License/Side walk cafeA resolution appointing the Chief of Police as the person to approve or deny special designation liquor licenses was presented to the city council. The resolution would allow the chief to approve or deny such requests with out the requester having to come before the city council. If it is the first time a person is making such a request then they will need to go before the council.Schnell asked Provance if this falls under the hat of Chief of Police.Provance said it did because the police department has a need to know of such licenses and when the event is planned. This way there are better prepared to handle any problems that may arise. The resolution passed 3-1 with Warner objecting. The city council approved the second reading of the side walk cafe ordinance with a vote of 3-1 with Haun objecting.Both Schnell and Haun said they had heard some negatives but said the resolution would handle those complaints. BudgetFarrar passed out a preliminary budget to the council members. He explained that by giving it to them early it gives the council more time to evaluate it. The budget in its current preliminary form calls for an increase in property tax to the tune of $13,000.Farrar said they are trying to keep the budget as close to last year as possible.“It is expensive to run a city,” said Farrar. In routine business, the council appointed Economic Development Director J.P. Komorny to the Panhandle Area Development District  (PADD) with Farrar being the alternate. The city has been a member of PADD for some time. PADD helps area municipalities with studies, grant writing and other things when it comes to economic development.