Little Falls council adopts generative AI policy, updates grant threshold and EDA rules

The Little Falls City Council approved several governance and economic-development policy changes during its May 4 meeting.

City staff member Alex described Policy 95, a generative AI policy that covers use of AI across city systems and vendors. Alex told the council the policy addresses accountability, transparency, accuracy, reliability, and privacy, and includes a human-in-the-loop verification requirement for any AI output used by the city. "It is absolutely imperative that anything that is utilized or that AI is utilized in is verified through that human, human in the loop requirement," Alex said. Council adopted the policy by motion.

Staff representative Sony explained proposed changes to Policy 90, the federal grants and awards policy, updating the single-audit threshold from $750,000 to $1,000,000 to reflect recent federal guidance; the council approved the change. Sony also presented EDA updates (Policy 1 and Policy 2) to separate grant and loan programs, streamline processing, and set a flat interest rate below prime for loans; the council approved those updates after motion.

Separately, the council approved change order No. 1 for the airport T-hangar rehabilitation project, accepting a $10,000 credit that reduces the contract from $1,420,000 to $1,410,000 with no extension to the contract time.

The meeting record shows unanimous voice votes on the policy items; staff will incorporate the updates into the city’s policy manuals and return any required implementation materials to the council as needed.