Loading...
HomeMy WebLinkAbout09-23-24-R II - A DEN HILLS Approved: October 14, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 23, 2024 7:00 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Tena Monson, Brenda Holden, Tom Fabel and Emily Rousseau Absent: None Also present: Interim City Administrator Jessica Jagoe; City Attorney Greta Bjerkness; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the meeting agenda as amended. The motion carried (5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE Interim City Administrator Jagoe stated the Joint Development Authority met on September 10t' with the agenda items being a Legislative Update with a presentation from Goff Public, a Development Agreement discussion and a Review of Terms for Final Development Agreement Sheet, as well as a Review of the Road Map through 2024. Ramsey County staff as part of the meeting discussion prepared a Rice Creek Commons Potential Agreement Landscape worksheet which is intended to be a document listing the legal agreements that will be a part of the development for both horizontal and vertical development that includes references then to the legal parties signing each of those agreements. This document was for discussion purposes and was not an exhaustive list nor did it reflect all of the matters to be discussed by each party under the purpose column. This will be a working document for the JDA, City and County as discussions continue. ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 2 Then the City has not received an update from Ramsey County regarding the purchase and sale agreement with Alatus. Also, the energy committee is slated to meet later this week to discuss the consultant's work on the draft sustainability design guidelines and LEED for Communities. Lastly, the next JDA meeting is tentatively scheduled for October 7a'. Councilmember Monson explained there was a need to piece together the financials for the mass grading and that hurdle was holding up the project. She indicated a solution was found for this issue, and the solution would be addressed in the purchase agreement between Alatus and Ramsey County. She stated the agreements that were previously negotiated would be reviewed and she understood the developer wanted to speak to the City about term sheets. She reported the grader wants to begin grading the site in the spring of 2025, which meant it would be important for the City to get through these agreements and to continue to move this project forward. Councilmember Monson commented the negotiations between the JDA and the County began early in 2023 and the terms on the number of housing units was quickly determined. She discussed the community engagement that was held surrounding the new density number and noted the 500 unit increase (1,960 total units) was accepted by the Planning Commission and City Council. She indicated the energy plan went from a vision to determining goals in the past 12 months. She explained the Council would be reviewing the term sheets at a fiiture meeting in order to keep this project moving forward. Councilmember Holden asked when grading would begin. Interim City Administrator Jagoe reported the County was working with Kimley Horn noting the design plans would be worked on in 2025 with grading to begin in 2026. Councilmember Holden questioned what had happened to the dirt that was removed from the TCAAP site. Interim City Administrator Jagoe stated that staff confirmed with Ramsey County that some dirt may have been moved internally, but no dirt had been moved off site. Mayor Grant commented on the Round Lake cleanup project noting there was more sediment in the lake than when the project was previously estimated. He explained this would raise costs for the project and would take an additional year to complete. Public Works Director/City Engineer Swearingen stated this was an accurate summary for the Round Lake project. Councilmember Monson reported the Met Council has a draft regional development guide called Imagine 2050 and they are taking public comments through October 7. She noted this is the first time the City has seen a map with transit going through Rice Creek Commons. 3. PUBLIC INQUIRIES/INFORMATIONAL None. 4. RESPONSE TO PUBLIC INQUIRIES ARDEN HILLS CITY COUNCIL— SEPTEMBER 23, 2024 3 None. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS A. Transportation Update Councilmember Holden asked if the punch list items along Lexington Avenue were completed. Public Works Director Swearingen reported the City's punch list items were complete. Mayor Grant explained the center of the roundabout at Lindey's was the responsibility of the County and would be maintained by Ramsey County. Public Works Director Swearingen stated this was correct. B. Elections Update Assistant to the City Administrator/City Clerk Hanson explained that absentee voting had begun and to vote by mail residents could visit the Secretary of State's website at mnvotes.org. In addition,residents could contact the Ramsey County Election office. Ballots could be mailed back or dropped off at the Ramsey County Elections office in St. Paul. She also stated that early, direct ballot voting where you can place your ballot right in the ballot machine would begin on October 18. She also noted that you must vote at your local polling place on Election Day and residents could contact City Hal with any questions. 7. APPROVAL OF MINUTES None. 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve Ordinance 2024-009 Amending Chapter 3 — Licenses and Regulations, Section 310 — Fees, Subsection 310.01 — Establishment of Fees by Ordinance Related to Event Centers and Authorize Publication of Summary Ordinance C. Motion to Approve Ordinance 2024-010 Amending Chapter 5 — Alcohol Beverages, Section 500 — General Provisions, Subsection 500.1 — Definitions and Subsection 500.3 — Types of Licenses Related to Event Centers and Authorize Publication of Summary Ordinance D. Motion to Approve Ordinance 2024-011 Amending Chapter 3 — Licenses and Regulations — Section 350 — Tobacco Products, Related to Tobacco Licensing in the City and Authorize Publication of a Summary Ordinance E. Motion to Approve Resolution 2024-043 Appointing Ben Lindau as Planning Commission Alternate ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 4 F. Motion to Accept Resignation of Permit Technician/Office Support Specialist G. Motion to Authorize Recruitment for a Permit Technician/Office Support Specialist H. Motion to Approve Development Agreement for Elegant Event Center (Rose Kukwa)—Planning Case 24-014 1. Motion to Approve Payment No. 2 and Change Order No. 2 — Arden Manor and Floral Park Improvements Project—Peterson Companies, Inc. J. Motion to Accept GameTime Community Champions Playground Grant Funds and Authorize Purchase of Playground Equipment at Arden Oaks Park MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried (5_0). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS A. Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated water customers whose accounts are 90 days past due were informed that the City intends to certify delinquent charges to Ramsey County to be collected with property taxes. These customers have the right to a hearing in front of the City Council to discuss this matter prior to certification. Mayor Grant opened the public hearing at 7:23 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:24 p.m. 11. NEW BUSINESS A. Resolution 2024-044 Adopting and Confirming Quarterly Special Assessments for Delinquent Utilities Finance Director Yang stated delinquent utility amounts are certified to Ramsey County quarterly. A list of utility accounts with a delinquent balance was compiled and notices dated August 8, 2024 were mailed. These customers were informed of their delinquent status and were asked to make payment of the delinquent balance by September 12, 2024. Utility accounts with an unpaid delinquent balance would be certified to Ramsey County to be added to property taxes payable in 2025. The certification amount is equal to the unpaid delinquent balance plus an eight percent penalty. The City will request that Ramsey County levy the delinquent balances against the respective properties. ARDEN HILLS CITY COUNCIL— SEPTEMBER 23, 2024 5 MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to adopt Resolution 2024-044 — Adopting and Certifying Ouarterly Special Assessments for Delinquent Utilities to Ramsey County. The motion carried (5-0). B. Set Preliminary Levy and Establish Truth-In-Taxation Public Hearing Date for Proposed Taxes Payable in 2025 • Resolution 2024-045—Preliminary Levy • Resolution 2024-046—TNT Public Hearing Date Finance Director Yang stated State law requires that cities certify their proposed property tax levies to the county auditor by September 30th of each year. The proposed tax levy that is given preliminary approval may be lowered but cannot be increased. Therefore, it is important that the proposed tax levy provides adequate revenues to finance the 2025 Budget. The City Council needs to decide the maximum levy that it is willing to approve and then adopt the resolution. There will be another budget workshop in November. The City will hold its Truth and Taxation Hearing and set the final tax levy at the December 9, 2024 City Council meeting. A budget workshop was held with the Council on September 9, 2024. Staff was directed to incorporate additional changes to the preliminary levy. She discussed how the median value homeowner would be impacted by the proposed preliminary tax levy. She reviewed the tax rates for other cities in Ramsey County noting Arden Hills tax rate was the lowest. Staff commented further on the proposed changes that were made to the preliminary budget per Council direction, reviewed the items where increases were projected for 2025 and recommended approval of the 11.87% tax levy. Councilmember Holden asked how the Safer Grant would impact the budget and questioned if the fire department raises were included in the budget. Finance Director Yang explained the salaries were included within the CIP public safety fund. She noted an incremental $40,000 was included to cover the captains' salaries. She indicated the budget did not include raises. Councilmember Holden believed the budget for 2025 was looking at increases for part time firefighters and noted the fulltime captains have both a COLA and market adjustment included in the costs from the Safer Grant. Mayor Grant indicated the County recognizes North Oaks as a city in Ramsey County but North Oaks was not included in a comparison like this because they were 50%homeowners' association and 50% city. He asked if the implementation of the salary increases for staff was included at the $155,000 level. Finance Director Yang reported yes, that was included in the budget. Councilmember Fabel commented the City had outperformed its budget the past several years and has spent less than what was budgeted. He indicated on Page 3 of the report, there was $161,670 taken out of the fund balance and in 2024, the City would be spending almost $1 million more than was budgeted, which reduces the City's fund balance. He asked what the fund balance was at currently. ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 6 Finance Director Yang explained the general fund balance was currently at $3 million on an annual basis. Councilmember Fabel discussed how an 11.87% tax levy includes more deficit spending in 2025. Finance Director Yang indicated the proposed budget projects a budget deficit in 2025. Councilmember Fabel questioned if the Finance Director recommended the City continue with deficit spending into the new year. Finance Director Yang stated ideally, the City would want to adopt a balanced budget, but she has seen the Council has adopted a budget deficit in the past, noting some of the budgets have outperformed the projected deficit. She indicated there was some risk in adopting a budget that was not balanced. Councilmember Fabel commented in order to approve a balanced budget cuts would have to occur or the tax levy would have to be increased to 15.5%. Councilmember Holden stated the City only receives property taxes twice a year, so the numbers from July 26, 2024 were deceiving. Finance Director Yang reported this was correct. Mayor Grant commented on the July 26 year to date versus actual numbers. He discussed the amount of funding that was transferred out in 2020, noting these additional funds were due to CARES dollars. He indicated the City maintains a 50% fund balance. He reviewed the transfers that were made in 2021 and 2022, noting the Council has tried to budget well, while funding extra projects that may not have been included in the budget. He did not believe it was realistic to believe staff would spend 100% of every single cost within the budget. He indicated Arden Hills was not unique when realizing it will not spend 100% of every dollar within the budget. He explained the budget was a plan and not a determination that every dime within the budget would be spent. Councilmember Monson indicated in 2022 there were concerns with the fact the Council was relying on revenues to balance costs knowing the City was going into a high inflationary period. She explained there was some under spending but there was also more revenue that came in that was not anticipated. She commented this year and last year, staff made it clear no additional revenue was anticipated other than what was budgeted. In fact, the revenues projected for 2024 may not come in as planned. She stated last year she supported under funding the levy. She explained she was hesitant to approve another budget with deficit spending given the fact there were no large developments on the horizon for 2025. She commented on the great investments the City would be making in its staff in the coming year, noting this investment would assist with retention and recruitment. She also reported one of the main comments she hears from residents was that they want the trails and parks maintained, which led her to believe the City should be investing in its parks for the betterment of the community. Councilmember Rousseau explained the majority of the Council supported franchise fees to assist with the construction expenses for the fire department. She discussed how the Council ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 7 would be setting the maximum for the levy and the amount could then be reduced in the coming weeks and months before the final levy is set in December. She commented on how a median value home valued $469,000 would be impacted by an 11.87% levy increase noting this would be a $13.83 per month increase and with a 15.5% levy increase the monthly increase would be $17.58. She stated this was a four dollar per month increase. She believed it would be more responsible for the Council to start out with the higher value (15.5%) for the preliminary tax levy. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion directing staff to implement the compensation study as discussed in the amount of$155,000 on January 1, 2025. Councilmember Holden stated this item was out of order. She noted the item on the agenda was to consider the preliminary tax levy and truth in taxation hearing. Mayor Grant clarified by asking Finance Director Yang if the compensation study would be implemented in the 2025 budget and she reported that the $155,000 had been included. He indicated the task before the Council was to set a preliminary levy, along with a truth in taxation hearing date. Councilmember Monson stated she was clear as to the matter before the Council,but she wanted to ensure the compensation study results were implemented in the 2025 budget. Councilmember Holden indicated $155,000 would cover salary but would not cover benefits, FICA or unemployment, which meant the amount the City would be spending would be higher than $155,000. She explained she originally did not support the$155,000 in additional salary,but was willing to offer her support. She did not believe any person on the Council was wanting to take this item out of the 2025 budget. She commented there were items that she believed were wants instead of needs that she would consider reducing or removing from the budget. Mayor Grant commented he believed the budget was clear and the Council has not made a statement that would indicate this funding would be removed from the 2025 budget. Councilmember Monson explained she would not be withdrawing her motion. Mayor Grant asked if it was in keeping with approving the preliminary levy to consider the budget line item by line item. He asked the City Attorney for an opinion. City Attorney Bjorkness advised the broad scope of what was listed on the agenda does contemplate a motion such as the motion made by Councilmember Monson and the action was appropriate. The motion carried (5-0). MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to approve the Public Works request for the Park Manager position (effective 4/1/25) as well as the Public Works Lead position (effective 1/1/25). Mayor Grant asked if the finance staff had created a budget with these positions included. ARDEN HILLS CITY COUNCIL— SEPTEMBER 23, 2024 8 Finance Director Yang reported these positions were included in the budget. Councilmember Holden commented she disagreed with waiting to implement the Public Work Lead position. She indicated right now the City had salary savings from the City Administrator and the permit position. She recommended the lead position be appointed ASAP. She noted right now the City had a member of the public managing a contract on behalf of the City. Councilmember Rousseau questioned when the City could have a lead position in place. Public Works Director/City Engineer Swearingen indicated he would like to do some sort of interview process but he could begin this process as soon as possible. Mayor Grant commented it was true the City Administrator had moved on to a new career and the City's permit tech has moved on as well. He noted he did not want any salary savings but rather wanted City Hall to be fully staffed. Councilmember Monson questioned what the impact would be of pulling in a lead position in 2024. Finance Director Yang stated with the City Administrator position open, there would be funding available to assist with this. However, she noted there was a revenue shortfall that the Council would have to consider. Councilmember Monson indicated she was open to amending her motion in order to bring the lead position on board ASAP. Interim City Administrator Jagoe asked for clarification of the scope regarding recruitment for the Public Works lead position as it relates to the preliminary budget discussion item. City Attorney Bjorkness stated this could be within the scope of this agenda item. Councilmember Fabel explained this discussion has to do with the 2025 budget. He recommended the Council move forward with impacts on the 2025 budget, versus creating expenditures for 2024. Mayor Grant reported this is a valid point. Councilmember Holden agreed, noting the Council could provide staff with direction to recruit and hire new lead position and information could be brought back to the Council at their next meeting. Councilmember Monson stated she could support the Council moving in this direction. She indicated she would not amend her motion, but rather would provide staff direction during Council/Staff Comments to begin the hiring process for the lead position. The motion carried (5-0). Mayor Grant commented on moving specific line items within the budget and listed a few. ARDEN HILLS CITY COUNCIL— SEPTEMBER 23, 2024 9 Councilmember Monson stated that while the Mayor was making jests, her motion was not in jest and she really felt that staff needed direction as the Council had gone back and forth. She said she did not intend to make jokes but rather wanted to be very clear for staff and about her intentions. Mayor Grant thank Councilmember Monson. He noted that generally when Council adopts the levy staff has direction and his comments were not in jest but rather items he feels strongly about, especially the Ramsey County dispatch since he serves on the committee. He noted if Council approves the budget, it should be well understood by staff that the monies that were budgeted go toward that cost. Councilmember Holden asked if the City had enough funding to pay for the Old Highway 10 trail. Public Works Director/City Engineer Swearingen commented this might be more of a detailed question for the Finance Director. He noted the City received a Safe Routes to School grant and the City would be applying for the MNDOT Safe Routes to School grant. Councilmember Holden questioned when this trail would be completed. Public Works Director/City Engineer Swearingen indicated this trail would be pushed to 2026. Mayor Grant clarified the trail from the end of Old Snelling to Lydia in Roseville would be covered 100%by MNDOT which meant this trail would have no impact on the City's budget. Public Works Director/City Engineer Swearingen reported this was correct. MOTION: Councilmember Monson moved and Mayor Grant seconded a motion to adopt Resolution 2024-046 - Adopting Truth In Taxation Public Hearin$ Date for Proposed Taxes Payable in 2025. The motion carried (5-0). Councilmember Rousseau explained she supported the 15.5% levy amount. Councilmember Fabel indicated he supported the 15.5% levy amount as well noting this would eliminate the need for deficit spending. Councilmember Holden stated having gone through the budget, she believed there were some wants included and funding was still needed for trails. She suggested the Parks Master Plan be pushed off another year until the new Park Manager position was filled next year and recommended the preliminary levy amount be set at 14%. Councilmember Monson indicated she supported the preliminary levy being set at 15.5%. She stated she was concerned with under budgeting and how this would impact the 2025 budget. She stated she was curious about Councilmember Holden's proposal of 14% and wanted to know what the math was as she would need to know that in order to support 14%. Mayor Grant reported he could support a levy increase of 13%. ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 10 Councilmember Fabel stated whatever percentage the Council settles on this would be a preliminary number that could be reduced but could not be increased. He recommended the Council move forward with the 15.5%preliminary levy at this time in order to have the maximum amount of flexibility. Mayor Grant commented on how a reduction in commercial property value shifts the burden of property taxes to residential property owners and that the pendulum was swinging strongly to fall on residential. He explained he was unaware of what the County and School Board levy increases would be. He stated he feared how Arden Hills' taxpayers would be impacted by overall tax increases. Councilmember Monson asked if property taxes have swung strongly towards residential property owners. Finance Director Yang reported there has been a shift but would not characterize it as strongly. She commented in the past the levy has been spread between apartments and industrial, but this has dwindled. Councilmember Holden recalled Ramsey County Commissioner Victoria Reinhardt had mentioned there was a significant shift from commercial to residential for property taxes in a recent article in the Pioneer Press. Councilmember Fabel stated he understood these were big numbers. He reported he did a quick analysis and stated even with a 15.5% levy increase, Arden Hills would still be in the lower one- third of all cities in Ramsey County when it comes to taxes. He stated Arden Hills was a low taxing city and has been a low spending city. Councilmember Monson reiterated that this was a preliminary levy and noted she would be open to a lower rate in December. She stated if a Councilmember had proposed cuts she would be willing to make considerations. Councilmember Holden indicated she will lay this information out for the Council in the coming months but understood at this time there were three Councilmembers that supported the 15.5% levy increase. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to adopt Resolution 2024-045 — Setting the Preliminary Lew at 15.5% for Taxes Payable in 2025. Councilmember Rousseau indicated if the Council were to move forward with a 13% or 14% levy increase, she would like to better understand how this would impact the fund balance. Mayor Grant requested a roll call vote. A roll call vote was taken. The motion carried 3-2 (Councilmember Holden and Mayor Grant opposed). 12. UNFINISHED BUSINESS ARDEN HILLS CITY COUNCIL—SEPTEMBER 23, 2024 11 None. 13. COUNCIL COMMENTS Councilmember Rousseau explained the EDC was meeting with business owners but did not meet in September, neither did the Planning Commission. She welcomed Ben Lindau to the Planning Commission. Councilmember Rousseau thanked all of the election judges for filling an important role during the election season. Councilmember Rousseau supported the City Council providing Director Swearingen direction on hiring the Public Works Lead. The Council was in agreement. Councilmember Holden reported she attended the Ribfest and noted it was not very well attended this year. She recommended this event be marketed more in 2026. She commented signage was not allowed to be posted in the City's parks. Councilmember Holden indicated she looked forward to receiving an update on Round Lake, noting trucks are still pulling out of TCAAP with Class V dirt. Councilmember Monson commented Xcel Energy has requested a letter of support regarding their natural gas innovation act for a geothermal district for Rice Creek Commons. She asked if the Council would support directing staff to draft this letter of support. The Council supported directing staff to draft this letter and once final, to use Council's digital signatures. Councilmember Fabel stated the City received very good news from the State Highway Department to construct a path along Snelling Avenue to County Road E at the State's expense. Councilmember Holden reported the City has budgeted $500,000 for this trail in the past that could now be freed up for other projects. Councilmember Monson encouraged the public to attend the family friendly pumpkin flashlight hunt on Saturday, October 5 at Cummings Park from 7:00 p.m. to 8:30 p.m. Mayor Grant stated he attended Ribfest and noted there were 25 teams this year. He explained he served as a judge this year along with Councilmember Holden. He reported Lieutenant Governor Flanagan also attended this event. Mayor Grant explained the Gateway Visitors Bureau met and he was pleased to report hotel revenues were on the rise. ARDEN HILLS CITY COUNCIL— SEPTEMBER 23, 2024 12 ADJOURN MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to adiourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:44 p.m. C\AL ,�-I" �4� L,4�2 Ju 'e anson David Grant C' y lerk Mayor