HomeMy WebLinkAbout2023/08/28 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
AUGUST 28, 2023
The St. Louis Park City Council meets in person at St. Louis Park City Hall, 5005 Minnetonka
Blvd. Members of the public can attend the meeting in person, watch by webstream at
bit.ly/watchslpcouncil, or watch on local cable (Comcast SD channel 17/HD channel 859).
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https://www.youtube.com/user/slpcable, usually within 24 hours of the end of the council
meeting or study session.
6:30 p.m. City council study session – council chambers
Discussion items
1. 90 min. Proposed 2024 budget: revised general fund, long range financial plan,
capital improvement plan
2. 60 min. Tree preservation and planting strategies for setting and reaching a
canopy goal
Written reports
3. Proposed FOG and backflow prevention programs update
4. End uses of compost
5. Cedar Lake Road + Louisiana project update
St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable
channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for video on demand replays.
If you need special accommodations or have questions about the meeting, please call 952.924.2505.
Meeting: Study session
Meeting date: August 28, 2023 Discussion item: 1
Executive summary
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Recommended action: No action recommended, for discussion purposes only
Policy consideration: Does council support the proposed 2024 budget as drafted? The balanced
budget consists of an "all-inclusive” preliminary levy increase of 7.7% and includes the following
components:
1.General levies (general fund (GF), park improvement, capital replacement and
employee benefits) increase of $2.6 million
2.Housing Redevelopment Authority (HRA) levy increase of $275,793
3.Economic Development Authority (EDA) levy increase of $377,000
4.Use of excess unobligated GF dollars for transfers of $485,000 in 2023 and
$360,000 in 2024
Summary: Recommendations in the proposed 2024 budget are based on maintaining high-
quality services and advancing city priorities while also making best use of public dollars. The
2024 budget provides a strategic opportunity to make decisions that impact the city’s long
range financial plan, prepare for known and unknown fiscal issues in the medium-term and
ensure long-term compliance with city financial policies. Highlights include a:
•GF levy increase that returns $1,082,500 in value for $364,500 in additional
spending.
•New financial plan for major road construction in the next three years,
eliminating the need for 2024 debt service levy increase and utilizing state and
federal funding.
•Multi-year plan to correct structural imbalances in capital replacement funds,
and the development fund. The plan relies on a combination of new levy revenue
and use of one-time funds to smooth the increase. Tax Increment Financing
Management Plan decisions may provide additional opportunities in the next several
years.
•HRA levy that continues to be set at the maximum allowed and EDA levy that is
increased to completely offset ongoing staffing costs paid out of that fund. The HRA
and EDA levies fund mostly of the city’s community development efforts, and the
EDA represents a revenue source into the structurally unbalanced development
fund.
Together, these changes result in an all-in levy increase of 7.7% for property taxpayers. This
increase will result in an estimated $78.15 annual property tax increase for the median priced
home of $373,300. In the months before the final levy approval, staff will continue to work to
lower the increase while maintaining the council’s policy priorities.
Financial or budget considerations: 2024 proposed budget and long-range financial plan
Strategic priority consideration: The city budget supports all strategic priorities
Supporting documents: n/a
Prepared by: Amelia Cruver, finance director
Reviewed by: City leadership team
Approved by: Kim Keller, city manager
Study session meeting of August 28, 2023 (Item No. 1) Page 2
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Discussion
Background
On Aug. 7 city council deliberated and gave direction on changes and additions to the general
fund budget. Today’s report outlines recommended spending and associated revenue levels to
support the Capital Improvement Plan and long-range financial plan. This report will culminate
in staff’s recommendations for the preliminary levy by walking through the remaining city funds
and the primary revenue (levy and otherwise) sources that support them.
Discussion timeline for 2024 budget components
Fund 2023 Adopted 2024 Proposed
General Fund 32,041,296 34,147,654*
Capital Replacement Fund (building and IT
infrastructure)
1,646,142 Aug. 28
Park Improvement Fund 860,000 Aug. 28
Employee Benefits Fund 150,000 Aug. 28
Subtotal General Levies 34,697,438
Debt Service Levy 6,362,813 Aug. 28
General and Debt Service Levies 41,060,251
Housing Redevelopment Authority Levy 1,582,696 Aug. 28
Economic Development Authority Levy 500,000 Aug. 28
Total Property Tax Levy 43,142,947
*updated from Aug. 7, 2023 projection
In 2022, St. Louis Park passed an “all-inclusive” levy increase of 6.83%. This included a 7.02%
general property tax levy, the maximum Housing Redevelopment Authority (HRA) levy allowed,
and an Economic Development Authority (EDA) levy of $500,000. At that time, the forecasted
all–inclusive levy increase in 2024 was projected to be 8.23%. This increase did not include any
additional programming in the general fund and continued structural imbalances in a number
of the city’s funds. The 2023 levy increase was largely driven by large infrastructure projects.
Present considerations
The city’s budget comprises several funds, which expend dollars. Levies and other revenue
sources provide resources into the funds. Staff takes care to ensure each city fund has long-
term sustainability and sufficiency to meet the aligned city goals. This report provides fund and
capital expenditure information through the Capital Improvement Plan (CIP), funding
recommendations and rationale. It also provides updated general fund projections and
recommendations on use of one-time funds.
Park improvement fund
Dollars in this fund support capital spending to maintain city parks. In addition to the park
improvement levy, park and trail dedication fees are an additional source of revenue for this
fund. This fund doesn’t have an official policy fund balance target. In the past, the city has
Study session meeting of August 28, 2023 (Item No. 1) Page 3
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
targeted a $1 million reserve to manage drops in revenue related to trail and park dedication
fees and unforeseen cost increases. The fund balance at the end of 2022 was $3.5 million. In
addition to property tax revenues, trail and park dedication fees are expected to be more
than $400,000 next year. Given the healthy fund balance and varied revenue sources in the
park improvement fund, no levy increase is recommended in 2024.
The proposed capital improvement projects in the park improvement fund include several
renovations to parks and playgrounds that support the city’s strategic priority to create
opportunities to build social capital through community engagement:
•Browndale Park (ward 2): $80,000
•Jackley Park (ward 2): $70,000
•Knollwood Green (ward 3): $70,000
•Webster Park Construction (ward 1): $390,000
Other highlights in the proposed 2024 park improvement fund include:
•A heater replacement in the Aquatic Park: A facility assessment focused on
opportunities to become more efficient and to identify investments that would
produce the biggest reduction in gas use. This resulted in a recommendation to add
dedicated pool heaters rather than relying on the building water heater to warm the
pools. $325,000 is budgeted for this improvement.
•A study to provide guidance on the future of the Aquatic Park and its supporting
facilities/amenities: The Aquatic Park is approaching the end of its operational life
(built in 1997; 30–40-year life expectancy). Planning is needed to avoid potential
significant operational disruption due to aging infrastructure. The amount of
$50,000 is included in the recommended budget to hire a consultant to assess
current facility conditions and recommend updates or renovations to extend its
useful life. If the results of the study suggest significant upgrades or remodel,
additions to the city’s financial plans would be required.
Municipal building replacement/city facilities fund
This fund supports capital spending for all city facilities. Just as with the IT replacement fund,
the only source of revenue for this fund is the capital replacement levy. One-time transfers
from the city’s general fund have supported spending that exceeded levy revenues in recent
years; without adjustments, this structural imbalance will continue in future years. The
recommended budget in 2024 and plan for 2025-2028 includes steady increases in the levy to
address the structural imbalance of this fund and use of one-time resources, including Public
Safety Aid, to bridge the existing gap between spending and revenues.
Highlights in the proposed 2024 CIP in the building replacement fund include:
•Upgrades to meet ADA requirements
•Building safety and remodels
•Replacement of public safety equipment
•A study to determine future space needs for the police department
Information technology replacement fund
Dollars in this fund support capital spending to city information technology (IT) infrastructure
and equipment. Along with the municipal building replacement fund, the only source of
revenue for this fund is the capital replacement levy. The IT replacement fund supports
necessary city spending in all departments, including police and fire. This fund supports the
technology for business operations of all departments.
Study session meeting of August 28, 2023 (Item No. 1) Page 4
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Examples of expenditures include:
•Ongoing software licenses
•Computers and other technology hardware and data storage
•Management of the city’s fiber network and servers
•Cybersecurity software, training and assessment
Like the municipal building replacement fund, the recommendation for the IT replacement fund
includes steady increases in the levy to address the structural imbalance of this fund and use of
one-time resources, including Public Safety Aid, to bridge the existing gap between spending
and revenues.
The bar graph below shows the gap between planned spending and revenues in the combined
IT and municipal building funds. The budget plans for modest, steady increases to move these
funds towards structural balance.
Debt service
The city has the option of funding major capital expenditures with cash on hand, municipal
state aid (MSA), other one-time dollars or debt service. The 2024 proposed budget doesn’t
include increasing debt service in 2024, which is unlike recent years and different than originally
projected in 2023. Planned CIP projects will require bond sales in 2025 and 2026. However,
from 2026 – 2028 the city will pay off three significant current debts, reducing the impact of
the new bond sales.
By using one-time resources and MSA funds to back borrowing for the Cedar Lake Road and
Louisiana Avenue improvements project, the city avoids large increases to the debt levy before
the city's debt payments begin to decrease in 2026.
Affordable housing trust fund and housing rehab fund
The city established the Affordable Housing Trust Fund (AHTF) in 2018 to provide opportunities
Study session meeting of August 28, 2023 (Item No. 1) Page 5
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
to expand funding resources for affordable housing and advance the city’s affordable housing
goals. Along with pooled Tax Increment Financing (TIF), the Housing Redevelopment Authority
(HRA) levy funds the AHTF and housing-related salaries. The 2024 proposed budget adds to
these sources with new state dollars, most of which are expected to be ongoing. As discussed in
previous reports, the special state legislation allowing for the city to deposit unobligated pooled
TIF for affordable housing into the city’s AHTF will sunset at the end of 2026 unless continued
by the state legislature. Note: Staff’s mid-term analysis is that the special legislation has been
effective in meeting the city’s adopted priorities and would like to request the legislature to
make it permanent.
The HRA levy has been in place since 2001. Based on current and future needs, the HRA levy is
recommended to be set at the maximum allowed of 0.0185% of estimated market value. This is
estimated at $1,858,489 in 2024, a $275,793 or 0.6% increase to the overall levy.
Between 2021 and 2023, approximately $4.6 million in pooled TIF was deposited into the AHTF
and used, in combination with the HRA levy and other sources, on the following:
•Creating 376 affordable rental units, including 45 units at 30% of area median
income (AMI)
•Funding the city’s First-Generation Homeownership Program
•Expanding funding to the oversubscribed low-income deferred home loan
program
•Facilitating acquisition of six land trust properties
•Providing emergency repair grants to homeowners at or below 50% AMI
Staff recommends that the city continue directing pooled TIF to the AHTF to the fullest extent
possible and maintain the full HRA levy so that the city can maximize city assets for affordable
housing opportunities. Additional expenditures on the horizon include $3 million in matching
funds for the NOAH multifamily land trust pilot program, assistance to the Wooddale Station
development and potential need for future housing improvement area (HIA) financing.
As the city looks to 2025 and beyond, having greater insight into the permanency of the
pooled TIF special legislation and ongoing revenues from the affordable housing sales tax,
funding needs and priorities for future years will be revisited. Staff’s goal will be to ensure
sufficient revenues are available to continue to provide the city’s housing programs; position
the city to take advantage of opportunities that arise beyond the current forecast; and
respond when the market rebounds in future fiscal years.
Upcoming budget and housing policy conversations that may have budget impacts include the
TIF management plan, housing program updates and the Maxfield Market Study. Final
decisions about pooling TIF for 2024 will be made by the council later this fall as part of the TIF
management report. If pooled TIF is not allocated, staff would update the 2024 draft budget to
reduce spending accordingly. Staff will incorporate council guidance into the final budget and
levy proposal.
As a future note: Prior to establishment of the AHTF, the city’s housing rehab fund was the
primary source of funding for housing programs and housing staff salaries. With the creation
of the AHTF, the housing rehab fund’s revenue sources, along with some of the expenses, have
been redirected to the AHTF and general fund. Staff continually review expenses to
understand whether they are best allocated to the AHTF or the housing rehab fund. The rehab
fund is slowly being depleted and, in the coming years, will require a revenue source.
Development fund
The development fund serves as the primary funding source for the EDA’s activities and
Study session meeting of August 28, 2023 (Item No. 1) Page 6
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
operations. Its primary revenue source is currently one-time dollars from the sale of EDA-
owned properties. Beginning in 2022, EDA levy dollars have also been contributed to the fund;
in 2023 the amount was $500,000. However, this amount falls short of the ongoing
expenditures budgeted in this fund resulting in a spending down of fund balance over time.
Since 2019, the development fund has spent down an average of $1.8 million each year from its
accumulated fund balance. At the end of 2022 that balance was $6.9 million, and if this trend is
not interrupted the fund could be spent down by 2027. To further preserve the fund, in light of
rising operational expenses as well as the increased costs of various economic development
and redevelopment initiatives, staff recommends the levy be increased to $877,000 in 2024.
This increase in the levy would fully cover the ongoing staffing costs associated with EDA
activities.
At one time the development fund grew to a balance of over $30 million. Over the last decade,
it has been significantly drawn down for:
•EDA operations and administration including personnel costs, and planning
studies/initiatives, as well as TIF district management and oversight
•Strategic property acquisitions (e.g. 4800 Excelsior, Bridgewater Bank Corporate
Center as well as the Beltline and Wooddale Station developments). These strategic
acquisitions have allowed the EDA to assert greater control and direction over what
is constructed on those sites. In 2022, the fund was also used to acquire a
commercial building for the affordable commercial land trust pilot.
•Economic development activities, programs and initiatives, along with small
business assistance within the city. Recent loan recipients include The Block,
Practical Systems, STEP, Honey & Rye Bakehouse, London Square mixed-use
building and Mexico City Café. In 2023, the EDA established a new commercial
business assistance program as well as a façade assistance program for the Texa
Tonka commercial area.
Staff anticipate that the fund will receive $3 million in revenue from the land sale for the
Beltline Station development in 2023, potentially another $3 million in revenue from the land
sale for the Wooddale Station redevelopment in 2024 or 2025 and additional revenue from the
sale of the commercial land trust building. However, as the EDA has seen with recent
developments, land sales are subject to the vagaries of market conditions and, as such, are not
a reliable source of ongoing revenue.
2024 expenditures from the development fund are anticipated to be approximately $4.3
million. These include costs related to staffing, EDA operations and property maintenance along
with programs and initiatives. Beyond 2024, anticipated significant expenses include
implementing the Arrive + Thrive plan, reforming zoning code performance standards to reflect
strategic priorities and completing the 2050 comprehensive plan.
The recommended levy for the EDA in 2024 represents an increase of $377,000 or 0.87% of the
total levy increase.
Road and utility construction
Each year, the city leads several road construction projects to improve pavement condition in
neighborhoods throughout the city. Construction on major streets, whether county or city
owned, can be single or multiyear projects and also require city resources in the form of staff
expertise and financial outlay.
Cost estimates for the city’s annual pavement replacement projects are adjusted for inflation.
Staff uses 3% as the inflation factorf. Until this year, this has proved to be an effective way to
Study session meeting of August 28, 2023 (Item No. 1) Page 7
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
estimate bid costs. In 2023, bid costs needed a 5% adjustment for inflation. This is consistent
with what the industry has been seeing on construction projects.
Due to this increase in inflation, staff adjusted the scope of all pavement replacement projects
in the ten-year CIP to keep them within budget for projected franchise fee revenue. This
resulted in the following changes to the pavement replacement projects in the 2025 – 2034
CIP:
•Rehabilitation of local streets: These are the annual pavement management
projects. Due to inflation, the number of street segments selected each year for
reconstruction was reduced.
•Maintenance of streets: These are the annual mill and overlay projects. Due to
inflation, the number of street segments selected each year for mill and overlay was
reduced.
•A 2024 commercial/ industrial pavement project: Park Glen Road, west and east
of Beltline Boulevard was scheduled for reconstruction in 2024; this project has been
postponed to 2030. In addition to concerns with inflation, staff anticipates additional
scoping work will be required based on the results from the watermain/ sanitary
sewer vulnerability study and it would not be prudent to move forward at this time.
In 2024 – 2026, the large Cedar Lake Road and Louisiana Avenue Improvements project is
happening in addition to the city’s annual pavement management programming. The
preliminary funding plan for this project presented in 2022 included $17 million in general
obligation bonds. Over the 18 months, the city has been successful in receiving $14 million in
federal and state funding. At the same time, the project scope has grown by $7.9 million. In
addition, the funding plan has been refined to eliminate entirely general obligation bonds to
further minimize the impact to property taxpayers. Instead of general obligation bonds, staff is
recommending selling bonds backed by Municipal State Aid. More details are included in the
Cedar Lake Road and Louisiana Avenue Improvements project update report also included in
the Aug. 28, 2023, packet.
Other major projects in the proposed 2024 budget include the annual pavement management
project in the Minikahda Vista and Browndale neighborhoods and the Minnetonka Boulevard
reconstruction project in the Fern Hill and Triangle neighborhoods. These projects are funded
using franchise fees, general obligation bonds and utility revenues.
As a future note: The city has additional capital needs on the horizon that will require
additional study and scoping before estimated costs and timing can be determined and
incorporated into the long-range financial plan and CIP. Important ones to call out include:
•Special service districts: The city has six special service districts (SSD), three of
which have infrastructure that is nearing the end of its lifecycle. SSD agreements
split infrastructure costs into two categories: maintenance (which the district funds)
and replacement (which the city funds). In 2024 and 2025 the city will complete a
study to assess the condition of these assets and determine the cost of
replacement. This study will be considered in future budget processes.
•Watermain/sanitary sewer vulnerability study: Staff is working on a citywide
assessment of the sanitary sewer and water systems. The study will assist with
identifying additional capital investment and understanding additional geographic
areas where mitigation and repairs should be considered. This water and sanitary
sewer risk assessment will help better determine priorities for future infrastructure
replacement needs. It will be completed in early 2024.
Study session meeting of August 28, 2023 (Item No. 1) Page 8
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
•Streetlight replacement: Staff is in the process of converting all city-owned
lighting to LED with new poles. The city still has around 200 non-LED streetlights and
220 pedestrian-level lights to replace. Staff is also assessing the condition of nearly
400 concrete streetlight poles for safety concerns related to the deterioration of the
concrete poles.
•Delamination: Along with many other cities, St. Louis Park is experiencing an
emerging issue of “delamination,” which is an accelerated deterioration of the top
layer of bituminous pavement on streets that have been sealcoated. Delamination
does not significantly impact the pavement structure; however, it does reduce the
aesthetic value and can accelerate pavement deterioration. Sealcoating is no longer
used by the city as a maintenance strategy. Engineering and public works are
working to identify the extent of the delamination problem and determine the
potential for mitigation within available funding and given coexisting needs.
Updated general fund and general fund balance
As outlined in the Aug. 7, 2023, report, the recommended 2024 general fund budget includes
several changes from last year. Most changes fall into one of two buckets: 1) adjustments
needed to maintain current service level and 2) adjustments to increase the level of service
provided or add new programming. Staff has worked to offset expenses with new revenue or
repurpose existing dollars whenever possible. At a high level, the 2024 general fund plan
provides more than $1 million of additional value with only $364,000 of additional spending.
Spending in the general fund is largely driven by personnel costs and experiences growth
between 4% and 6% each year to maintain the current services provided by these employees.
Refined 2024 projections show an increase of the general levy of nearly 5% is needed to
maintain city services; this is slightly higher than the 4.5% that was reported Aug. 7 and driven
by the drop in construction license revenue. At that meeting, the council expressed preliminary
support for maintaining current service levels along with an additional 1.1% levy growth to
expand services and meet growing community needs. The general fund can be expected to
grow modestly with inflation each year if the current level of service remains the same.
Understanding that multiple 2024 general fund requests had larger general fund implications in
future years, council requested that information be presented to forecast the long-term impact
of approving the staff positions. Those assumptions have been incorporated into the five-year
plan below.
Five-year levy forecast (before any unplanned spending)
2023 Adopted
2024
Proposed
Preliminary
levy
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total city
property tax
levy
$ 43,142,947 $ 46,483,749 $ 49,207,288 $ 51,827,832 $ 53,794,408 $ 55,841,842
City all-
inclusive levy
growth 6.83% 7.74% 5.86% 5.33% 3.79% 3.81%
The general fund balance is healthy. The city’s financial policies require an unobligated fund
balance between 40 and 50% of the subsequent year’s budgeted expenditures. Past practice
Study session meeting of August 28, 2023 (Item No. 1) Page 9
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
has been to target an unobligated fund balance of at least 45% of the next year’s budget. In
2024, staff recommends retaining a fund balance at 48% of estimated spending, as a fund
balance closer to 50% is an important factor in St. Louis Park’s positive bond ratings. Following
that recommendation, council may redirect $2.7 million in one-time fund balance. This report
provides recommendations for uses for those funds to achieve a balanced and sustainable
budget.
Public safety one-time dollars
In 2023, the state approved an allocation of one-time dollars for public safety purposes. St.
Louis Park’s portion is estimated to be $2,194,257. Staff from across departments have worked
together to develop a spending plan that provides more funding to existing needs; positions the
city to be more effective in advancing its priorities; and doesn’t create a need for higher future
property taxes. The recommended allocation includes both items already planned for in
previous years along with new, innovative ideas. Just under $317,000 is reserved for
unforeseen cost increases and future capital needs in the public safety CIP.
Public safety aid recommended expenditures
2024 2025 2026 Notes
Public
safety aid
–existing
expenses
Planned public
safety capital
expenses
$1,157,000 $250,000 Lowers the capital levy. Ex:
radio replacements,
facilities deferred
maintenance, space study
Reserve for
undesignated
public safety
capital needs
$158,000 $158,900 Reserve for unforeseen
future capital needs or
cost increases.
Subtotal $1,157,000 $158,000 $408,900 (78.6% of total aid
spending)
Public
safety aid
–
innovative
ideas
AEDs in the parks $40,000 Add Automated External
Defibrillators (AEDs) to
several parks
"Rec on the Go!"
vehicle
$75,000 Bring free recreation
opportunities to youth (K-
9) and meet them where
they reside, focusing on
underserved parts of town
from 3pm -7pm.
Behavioral health
consultant and
vehicle
$240,000 Consulting work and
vehicle for the
construction of a systems
approach to behavioral
health response in St.
Louis Park
Study session meeting of August 28, 2023 (Item No. 1) Page 10
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Critical incident
multi-purpose
transport vehicle
$60,000 Vehicle for public safety
core functions, e.g.
transporting Mobile Field
Force officers, housing the
Crisis Negotiator Team
during critical incidents,
temporarily staging
community members
during critical incidents
such as structural fires,
and other general
transportation outreach
needs
Police recruitment
campaign
$55,000 Develop campaign to
highlight the tangible and
intangible benefits of
working for the City of St.
Louis Park
Subtotal $470,000
Annual total $1,627,000 $158,000 $408,900 (21.4% of total aid
spending)
Total public safety aid spending $2,193,900
Putting it all together
Previous staff direction for the 2024 levies included preparing for three major levies: the
general and debt levy (comprised of general fund, capital infrastructure, park, employee
benefits, and debt), the HRA levy and the EDA levy. In assembling the budget puzzle, staff
strategically used one-time cash, new monies from the state and resources made available
through federal rescue funds in order to reduce the property tax burden.
Updated long-range financial plan
The five-year forecast below includes the following assumptions:
•Steady inflationary growth in general fund to maintain current service levels.
•Additional levy in 2025 to cover the full annual cost of personnel additions in the
recommended 2024 budget of two police sergeants and one public service worker.
•Levy increases of $200,000 each year in 2024, 2025 and 2026 to “step down”
after using one-time sources, rather than a one-year jump in levy revenue.
•Capital replacement levy to meet currently identified CIP needs, after using
Public Safety Aid and some one-time general fund transfers.
•Debt service to fund major street infrastructure projects currently laid out in the
CIP.
•Steady inflationary growth in the HRA and EDA levy to keep up with salary costs.
Updated Five Year Financial Plan
Fund 2023
Adopted
2024
Proposed
2025
Projected
2026
Projected
2027
Projected
2028
Projected
General Fund $ 32,041,296 $ 34,147,654 $ 36,264,298 $ 38,096,192 $ 39,810,520 $ 41,601,994
Study session meeting of August 28, 2023 (Item No. 1) Page 11
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Capital
Replacement
Fund
$ 1,646,142 $ 2,177,793 $ 2,420,496 $ 2,664,930 $ 2,814,930 $ 2,964,930
Park
Improvement
Fund
$ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000
Employee
Benefits Fund $ 150,000 $ 200,000 $150,000 $ 150,000 $ 150,000 $ 150,000
Subtotal General
Levies $ 34,697,438 $ 37,385,447 $ 39,694,795 $ 41,771,122 $ 43,635,451 $ 45,576,924
Debt Service
Levy $ 6,362,813 $ 6,362,813 $ 6,681,785 $ 7,127,333 7,127,333 $ 7,127,333
General and Debt
Service Levies $ 41,060,251 $ 43,748,260 $ 46,376,580 $ 48,898,455 $ 50,762,784 $ 52,704,257
HRA Levy $ 1,582,696 $ 1,858,489 $ 1,914,244 $ 1,971,671 $ 2,030,821 $ 2,091,746
EDA Levy $ 500,000 $ 877,000 $ 916,465 $ 957,706 $ 1,000,803 $ 1,045,839
Total Property
Tax Levy $ 43,142,947 $ 46,483,749 $ 49,207,288 $ 51,827,832 $ 53,794,408 $ 55,841,842
Levy Growth 7.74% 5.86%* 5.33%* 3.79%* 3.81%*
*Note: projections, including levy growth are projected to maintain current service levels and do not
include any unplanned spending.
Strategic use of one-time cash
As a result of legislative action at the state and federal level, the city has two pools of one-time
resources available to meet program needs and to minimize property tax increases. Specifically,
the city has $2.3 million available from ARPA revenue reduction support and $2.1 million in
public safety aid to St. Louis Park to use on public safety needs. Public safety aid funding is one-
time-only but can be spent over several years on a broad set of public safety needs. Finally, the
city has an additional $2.7 million in excess general fund balance above the city’s targeted fund
balance policy.
After assembling the spending and revenue picture for the city’s major funds, staff identified
opportunities to utilize one-time funds. One-time resources are being recommended in funds
that align with the required use of the dollars and with careful attention to the potential multi-
year impact one-time funds can have on levy increases. For example, one-time funds are
recommended to cover a spike in planned spending, or over several years with a gradual
lowering of one-time support to avoid creating a sharp increase in property tax revenues.
Use of one-time funds by year
Purpose of expense 2023 2024
Proposed
2025
Projected
2026
Projected
Financial impact
General fund levy
relief
$500,000 $300,000 $100,000 General levy
relief
2023 Pavement
management program
(sidewalks)
$485,000 Debt levy relief
Capital replacement
funds
$360,000 $872,963 $203,933 Capital levy relief
Study session meeting of August 28, 2023 (Item No. 1) Page 12
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
Public safety aid:
existing expenses
$1,157,000 $158,000 $408,900 Capital levy relief
One-time general fund
spending: community
outreach, elections,
capital grant
$500,000 New one-time
spending without
levy impact
Public safety aid:
innovation
$470,000 New one-time
spending without
levy impact
Total $485,000 2,987,000 $1,330,963 $712,833
Final approval of the 2023 pavement management program included additional sidewalk work.
To fund this, a transfer is recommended in 2023 to the streets capital projects fund. By making
this transfer, additional debt payments are avoided in 2024 and beyond that would increase the
city’s required debt levy.
Additionally, the proposed 2024 budget reserves approximately $1.6 million in one-time
sources for future decision making around underground infrastructure, special service districts,
street light maintenance and repair and other emerging needs. Updates to the TIF Management
Plan may impact the need for cash transfers into the capital replacement funds in future years.
Preliminary levy recommendations + market impact
Fund 2023 Adopted 2024 Proposed Percent
increase
General Fund 32,041,296 34,147,654 6.6%
Capital Replacement Fund (building and
IT infrastructure)
1,646,142 2,177,793 32.3%
Park Improvement Fund 860,000 860,000 0.0%
Employee Benefits Fund 150,000 200,000 33.3%
Subtotal General Levies 34,697,438
37,385,447 7.7%
Debt Service Levy 6,362,813 6,362,813 0.0%
General and Debt Service Levies 41,060,251 43,748,260 6.5%
Housing Redevelopment Authority Levy 1,582,696 1,858,489 17.4%
Economic Development Authority Levy 500,000 877,000 75.4%
Total Preliminary Property Tax Levy 43,142,947 46,483,749 7.7%
The city’s portion of property tax paid by individual property owners is determined by the levy
as approved by council and the market value of all properties within the city. Looking ahead to
taxes payable in 2024, the market values of industrial and commercial properties are growing
faster than residential. This will result in an increase in property tax bills for residential
properties that is less than the overall property tax increase.
The median home value is $373,300, a 0.4% increase from the previous year. A 7.7% levy would
result in an increase of 4.7% for a single-family homeowner at the median value with a
Study session meeting of August 28, 2023 (Item No. 1) Page 13
Title: Capital Improvement Plan, Preliminary Maximum Levy and Long-Range Financial Plan
homestead exemption. This increase will result in an estimated $78.15 annual property tax
increase for the median priced home of $373,300, or $6.51 per month, in 2024.
This represents a return to pre-pandemic norms in property valuation trends. Prior to 2020,
strong growth was seen consistently in the industrial and commercial sectors, reducing the
impact of levy increases on residential properties. During the pandemic, however, commercial
and industrial properties lost value, while residential values soared. This led to several years
where residential property tax bills increased by more than the approved property tax levy
increase.
Next steps
2024 budget development calendar
August 7 General fund budget and American Rescue Plan Act (ARPA): projections at
current service level, staff priorities for general fund changes, update on
potential one-time capital grant program
August 28 Proposed 2024 budget: revised general fund, long range financial plan,
capital improvement plan, EDA and HRA levies
September 18 Maximum levy adoption
October* Fee adoption and hearing
October –
November*
Tax Increment Financing management report
November 27 Review final budget and levies prior to Truth in Taxation hearing
December 4 Truth in Taxation hearing
December 18 2024 budget adoption
*Specific dates are TBD
Staff will take council feedback and make any needed adjustments to the recommended budget
and levy before Sept. 18, when council is planned to vote on the preliminary maximum levy. In
October the council will review the TIF management report which will present options for
district decertification over the next few years. Work can be done to plan levy increases over
the long term with decertification years to minimize property tax bill increases to property
owners.
Additionally, finance staff will work to complete a rate study for utility services to incorporate
new contracts and revised capital spending proposals. Other fees for service will be revised and
adjusted as needed in October. That work will be presented to council later in the fall and
provide a full picture of the changes in costs to residents and businesses in St. Louis Park in
2024.
Meeting: Study session
Meeting date: August 28, 2023 Discussion item: 2
Executive summary
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Recommended action: None at this time. The purpose is to discuss policies related to tree
preservation and planting and explore if council is interested in setting a tree canopy goal.
Policy consideration: Does the city council support:
• Staff’s recommendations regarding public and private tree inventory?
• Establishing a long-term tree canopy goal?
• Future increased spending for watering and disease treatment in trees?
• Updating the zoning code to better protect heritage trees as recommended by staff?
Summary: The tree canopy, which is the percentage of ground that is covered by tree leaves
during the growing season, is diminishing in St. Louis Park. This has been caused primarily by
tree removals resulting from emerald ash borer (EAB) in ash trees, decline in mature oak trees
and Dutch Elm disease in elm trees. Tree removal from urban development projects is also a
contributing factor. Tree canopy coverage in the city was estimated at 33.6% in September of
2022, a decline from 38.1% estimated in 2015. Canopy decline is expected to continue for the
next two to five years as EAB populations peak in the city.
Slowing canopy loss depends on preserving existing trees. Current city code has tree
protections and deterrents for removal of public trees, and for private trees on commercial
properties and residential subdivisions. Additional staffing to allow for citywide enforcement of
ordinances and additional actions to preserve the largest trees—heritage trees—on commercial
properties may help preserve those existing trees and their benefits.
Financial or budget considerations: Depending on this discussion staff will return at a future
date to discuss financial considerations, which would likely be implemented in the 2025 budget.
Strategic priority consideration: St. Louis Park is committed to continue to lead in
environmental stewardship.
Supporting documents: Discussion, November 23, 2015 study session agenda, November 23,
2015 study session minutes, March 22, 2022 study session topic proposal, April 25, 2022 study
session agenda, April 25, 2022 study session minutes, August 14, 2023 study session agenda,
Attachment A: Dec. 2022 memo to city council from the environment and sustainability
commission
Prepared by: Michael Bahe, natural resources manager, Sean Walther, planning manager /
deputy community development director, Emily Ziring, sustainability manager
Reviewed by: Jason T. West, director of parks and recreation, Cindy Walsh, deputy city
manager
Approved by: Kim Keller, city manager
Study session meeting of August 28, 2023 (Item No. 2) Page 2
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Discussion
Background
Preservation of significant trees
A “significant tree” is defined within the zoning code as any tree, with the exception of Salix
(willow), boxelder, Siberian elm and black locust, that is at least five caliper inches in diameter
for deciduous trees and six caliper inches for conifers. Aspen, cottonwood and silver maple are
considered significant if they are at least 12 inches in diameter at 4.5 feet from the ground.
Siberian elm and black locust are invasive species and are therefore not considered significant.
Staff will review boxelder and willow species for future inclusion in the definition of significant
trees using current data.
The council has previously discussed the subject of tree preservation, particularly heritage tree
preservation of trees on lots with single-family and two-family dwellings and tree preservation
during grading projects on those lots. In 2015, this idea was discussed as a potential zoning
code amendment. Council decided not to pursue it at that time.
April 2022 tree canopy percentage goal
Council Members Kraft, Rog and Brausen proposed a study session topic on establishing a tree
canopy percentage goal. A staff analysis was prepared and discussed in April 2022. Council
agreed that a tree inventory should be completed so that current conditions are known prior to
adoption of any new tree policies or goals. Information about the inventory status is below.
December 2022 memorandum to council from environment and sustainability commission
The environment and sustainability commission (ESC) established a four-member tree policy
work group to explore ideas for retaining and increasing tree canopy. Although city tree policy
normally falls under the parks and recreation advisory commission (PRAC), the ESC became
interested in the topic and worked together with natural resources, engineering and planning
staff to discuss the issues. The memo was sent to council through the city manager in
December 2022. Many of the suggestions included in the memo are addressed in this report.
Present considerations
Status of tree inventory
Tree inventory
A tree inventory is intended to create a detailed database of trees with individual tree
attributes collected. A full inventory of public trees in city boulevards and maintained park
areas was completed in 2020 and is actively maintained by natural resources staff. Attributes
collected were location, diameter, species and condition.
An update to the 2020 inventory of public trees is underway by members of the Climate Impact
Corps Community Forestry Initiative (Climate Impact Corps Forestry Initiative is a subsection of
AmeriCorps; their members serve communities and nonprofits to help with urban forestry
initiatives and light tree maintenance activities). These members have been in the field since
Study session meeting of August 28, 2023 (Item No. 2) Page 3
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
February 2023 collecting data on all boulevard and park trees; this work should be complete by
2027.
Should council wish to accomplish the public tree inventory update more quickly, a tree
consultant could be hired to complete the work within six to eight months (weather
permitting). An initial estimate for this work was $100,000; additional estimates can be
collected if expediting this work is paramount to council. Given the cost of a consultant, staff
recommends continuing to inventory using AmeriCorps staff.
Staff recommendation: Given the cost of a consultant, staff recommends continuing to
inventory using AmeriCorps staff.
The private tree inventory process is more complex because staff cannot access trees on
privately owned land. The city has never undertaken an inventory of privately owned trees.
Private inventories are not standard practice and would require inexact techniques, such as
counting from the right of way or using hyperspectral remote sensing. While a private inventory
will likely be more expensive than a public tree inventory and require significant proposal
development, this could be undertaken if direction is given and money is budgeted.
Staff recommendation: Due to the cost and logistical challenges of a private tree inventory
process, staff does not support a private tree inventory process and believes that additional
tree health and canopy dollars could be more effectively allocated.
Establishing a long-term tree canopy goal
A calculation of tree canopy estimates the percentage of ground that is covered by tree leaves
during the growing season, including all trees in the city.
2015 canopy assessment
In 2015, the University of Minnesota’s Remote Sensing and Geospatial Analysis Laboratory in
the Department of Forest Resources published the 2015 Urban Tree Canopy Assessment Twin
Cities Metropolitan Area. The assessment determined that the existing tree canopy in St. Louis
Park was 38.15%, with potential tree canopy calculated as 58.2%. The existing tree canopy
proportion reported is the aggregated tree canopy area divided by the total area of each city.
The potential tree canopy is the proportion of vegetated land (excluding agriculture) that could
be converted to tree canopy.
2022 canopy assessment
Using the city’s existing tools, staff calculated the tree canopy in September 2022 to be 33.6%.
This is a 4.5% decrease in tree canopy since the 2015 assessment, however, it should not be
assumed that the city has lost 4.5% of its canopy in seven years given the number of variables in
this assessment.
Establishing a long-term canopy goal
If council wants to establish a tree canopy goal, the feasible maximum tree canopy will be lower
than 58.2%. This is because the calculated potential of 58.2% from the 2015 tree canopy
assessment includes recreational areas such as athletic fields and golf courses, which would not
be planted with trees.
Study session meeting of August 28, 2023 (Item No. 2) Page 4
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
In addition to setting a canopy goal percentage, staff recommends that a realistic timeline be
set that considers current canopy status. With annual losses due to emerald ash borer and
drought, plus the time it takes for newly planted trees to establish, the current canopy
percentage will decrease further, and could do so significantly, before starting to increase
again.
Regardless of whether a canopy goal is set, potential improvements to current tree
preservation strategies and ideas for future policies and programs could be considered to
preserve and improve tree canopy, such as the following.
Staff recommendation: Staff recommends establishing a long-term tree canopy goal, with the
understanding that, in the short-to-mid-term the city should expect to see a reduction as EAB
infested trees die.
Potential improvements to existing tree preservation strategies
The city currently regulates and supports the preservation of trees through a combination of
zoning and vegetation code regulations and discount treatment programs for tree health.
Dollars available are maximized and opportunities are available to serve more people.
Enforcing tree protection during construction
Monitoring every private construction site for compliance with the tree protection section of
the zoning code is challenging because construction season overlaps with tree maintenance,
planting, storm damage and treatment season. As a result, inspecting construction sites for
possible code violations is a complaint-driven process.
Further, a tree may be fatally injured due to construction activities such as equipment parking
or driving on its roots, but the damage may not be known until five to ten years later. At that
point, it is no longer feasible to determine the cause and who is responsible.
Bulk material containers pose a risk to tree roots. At a future meeting, the council will consider
policies and procedures to allow bulk material containers to be parked in the street. This policy
could reduce one potential risk for trees by preventing containers from being placed in yards on
top of tree roots. However, heavy construction vehicles remain a threat and cannot always be
caught the moment they run over and compress tree roots.
Staff recommendation: Staff recommends exploring the cost of additional staff trained to
inspect for and enforce around tree protection.
Protecting trees through treatment
The city funds these treatment programs through a pool of one-time funds made available by
the 2009 sale of excess city land. These funds have been used for Arbor Day plantings and
programming, the annual tree sale, some public tree plantings and reimbursements to
residents for private tree injections. The remaining funds allocated for this purpose will likely be
fully spent within two years.
Study session meeting of August 28, 2023 (Item No. 2) Page 5
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Staff recommendation: Staff recommends expanding treatment programs to provide higher
discounts to environmental justice areas of the city in a similar way that we do for the full-
service tree sale. Staff further recommend including Dutch elm disease treatments in public
trees. Both of these changes would increase the amount of funding needed annually to
maintain the public tree canopy. A portion of the funds (those currently dedicated to private
tree injections) could come from the Climate Investment Fund.
Enforcement of approved landscaping plans
Landscape plans for commercial developments are required to show size, location and type of
existing trees and shrubs, tree protection, tree removals, site restoration details and a planting
schedule. At the point when a certificate of occupancy is issued, planning and zoning staff
inspect commercial sites to confirm that the landscaping installed matches what was approved
in the landscaping plan. They also visit the site one year later to confirm, while they are still
under warranty, that the tree plantings survived the first year.
When there are requests for later additions or amendments to development plans, the division
reviews the site for compliance with approved plans and current requirements and works to
bring the properties into compliance. Most development approved with a conditional use
permit, planned unit development, variance, plat or similar city approvals include a condition
that the site is developed and maintained in accordance with the official exhibits (e.g. approved
plans).
Also, the code states that, “The continued maintenance of all required landscaping materials in
a live and healthy state is a requirement…and is the responsibility of the owner and tenant of
the property on which the materials are required. This requirement shall run with the land and
be binding upon all future property owners.”
Zoning staff learn of commercial sites that are out of compliance with their approved
landscaping plan on a complaint-driven basis, and if the approvals were granted years earlier,
staff must pull the archived plans and compare them to the existing conditions to determine
what has changed. There is not a program to regularly inspect the landscaping to monitor that
it is maintained and unaltered in the ensuing years if no additions or amendments to
developments are requested and if there are no complaints.
A methodical approach tied to the city’s nuisance tree program may be effective. Staff observes
that where EAB removals have occurred on commercial properties, replanting has been
neglected by owners. Staff intends to communicate the code requirements for replanting to
commercial property owners when the city condemns a nuisance tree.
Additionally, staff is exploring two innovative ideas:
1. Whether we have the time, expertise and reliable data to observe changes in the tree
canopy using remote sensing data. This would further identify the properties with an
approved landscape plan that have had trees removed for follow up.
2. Whether staff have capacity to develop and administer a reinspection permitting system
to revisit the site and confirm suitable substitute tree species have been planted to
replace the tree. In addition to implementing this on any future removals, staff can also
review the list of previous nuisance tree removals and begin to contact the owners
Study session meeting of August 28, 2023 (Item No. 2) Page 6
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
about the city requirements, available assistance programs and inspect those properties
to confirm compliance. While many property owners may be cooperative and
responsive to this, we anticipate this may be a low priority for these owners and
businesses, and they may be resistant. It may require multiple communications and
potentially administrative penalties to gain compliance. These actions could also
generate appeals to the board of zoning appeals or city council.
Potential improvements to existing tree planting strategies
Young tree watering
Natural resources division staff manage watering on publicly owned land in the city. Residents
adjacent to boulevard trees are asked to assist with watering via education and provision of
water bags if requested. Drought conditions have plagued St. Louis Park for three consecutive
years, making the need for manual watering even greater. Unfortunately, dozens of newly
planted public trees do not survive past their first year at our current planting rate due to more
regular drought conditions. Survivability is acceptable during normal precipitation years,
however, given climate projections, future summer precipitation levels are much more likely to
look like 2021-2023 levels through at least 2040.
Staff recommendation: We have reassigned seasonal staff to help with watering of public trees.
If we continue to see drought conditions, in future budget years, additional seasonal staff and
equipment will be needed to help with tree maintenance if we want to ensure that an
acceptable number of public trees reach maturity.
New tree preservation and planting policy ideas
Heritage tree protection
Council has requested that the city consider adopting a heritage tree preservation ordinance.
Adopting a new heritage tree definition and rules would underscore the city’s heighted
attention to its tree canopy as it experiences EAB losses. Defining a new and higher
category/tier of tree places greater importance on the most valuable trees in the community.
The definition should be based on the diameter or height and species of the tree. Based on city
staff’s review of several other cities’ codes, the following definition seems to fit St. Louis Park.
Heritage trees are a rapid-growth tree that is 30 inches or greater in diameter at
standard height (DSH), a standard-growth tree that is 25 inches or greater in DSH, or a
healthy coniferous tree that is 30 feet in height or taller.
The terms “rapid-growth tree” and “standard-growth tree” also need to be defined. Examples
of rapid-growth trees include aspen, cottonwood and silver maple. Slow-growth trees include
oak, hackberry, walnut, etc. The exact ordinance language will need to be reviewed in more
detail.
Heritage tree designation for removal of trees from commercial lots
When significant trees are removed from commercial properties for development (including
multiple family and residential land subdivisions), the city zoning code uses formulas to
Study session meeting of August 28, 2023 (Item No. 2) Page 7
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
determine the replacement tree requirements. These result in replanting new trees on site to
replace the ones removed and sometimes paying a fee to the city. Tree replacement fees
support the city’s tree planting program on public land and are directed to areas near where
the removals occurred.
Staff recommendation: Direct staff to update the city zoning code to include a heritage tree
provision and better protect heritage trees. The city recognizes that the impact of their removal
is greater upon our current canopy, as they are of higher value and contribute more benefits.
These changes could include fee or formula changes.
Tree ordinance for existing residential properties
A homeowner may remove trees for any number of reasons, including for a renovation or
addition, aesthetics, avoiding the need to clean up or mulch fallen leaves, solar access,
disease/infestations, high-risk trees and the desire for additional open space. The cost of
removing a large, mature tree is often into the thousands of dollars. Staff have no way of
knowing how many of these trees are removed from lots annually.
Council has asked staff to explore extending the private land tree removal ordinance to include
existing single-family and two-family lots.
Significant barriers to administering an ordinance to restrict tree removal from single-family
and two-family lots include the following:
Enforcement
• Volume: With 11,911 single-family and two-family lots in the city (2022 housing activity
report), enforcement would be difficult.
• Assessment: For trees removed without a permit and responded to by complaint, it
would be difficult to know the species, size and number of trees that were removed.
• Equity: Any complaint-driven process raises concerns about equitable enforcement—
the city may inadvertently penalize one neighbor and not another. Also, residents who
feel they have agency to file a complaint varies.
• Uneven application: The private property ordinances researched typically applied to
single-family lots when there was a full building tear down and rebuild, which is an
average of ten per year in St. Louis Park. No penalties or regulations existed for these
lots outside of that permitting timeframe. While this limits the number of applications
to review and monitor, it also sets uneven application of the tree protections.
• Staffing: Currently only one FTE enforces the tree protection section of the zoning code.
Additional staff would be required to administer an ordinance that includes single-
family and two-family lots. Natural resources staff have the expertise to interpret and
apply the tree removal code.
Plan review
• While the city may have an opportunity to review tree removal and preservation plans
with certain permit applications, most single-family and two-family residential projects
don’t currently require a certificate of survey and tree inventory. Doing so would
increase costs and time and would be a burden to smaller scale projects.
Study session meeting of August 28, 2023 (Item No. 2) Page 8
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Additional staff time would also be required to collect this data for these projects and to
review single-family and two-family residential projects for compliance.
Disputes
• Staff are concerned about potential liability issues from authorizing tree removals on
private land, especially if there are disputes between the neighbors about who owns the
tree.
Litigation risk
• A policy potentially creates a risk for litigation. This is a significant restriction placed on
the ability of private individuals to manage or remove trees from their own private
property. Done in a blanket manner, without an individual process or opportunity to
appeal, this action may present a legal risk of claims that the city failed to provide
homeowners with sufficient due process. Affected homeowners may also claim that
such a restriction on their private property rights constitutes a compensable taking.
Staff recommendation: Staff believes it would require more resources to enforce and
administer such an ordinance, and more resources than may be justified and available. Staff
believes that efforts should focus on the changes to existing policies described above and not
expand the scope of properties the policies are applied to.
Landscaping plan “credits” for existing mature trees
While existing trees factor clearly into the tree replacement formula, no clear credit is granted
for preserving trees in the general landscaping formulas. In other words, we could require
fewer new trees to be planted on a site, if existing mature trees are being preserved. Staff could
explore the idea of a formula for landscaping requirements that quantifies the benefit of
preserving healthy trees already standing.
If there is council interest in providing incentives for tree preservation in this manner, staff
would explore this idea further with the planning commission and later present
recommendations to council for consideration.
Staff recommendation: Staff could explore an incentive for preserving heritage and significant
trees in the zoning code. The landscaping section of the code also applies formulas for new
commercial developments and expansions to determine the number of plantings that are
expected. The code could discount the number of new tree plantings required when heritage
trees or significant trees are being preserved on the property.
Staff recommendations
Staff has made a number of recommendations in this report. To summarize:
• Public tree inventory: Given the cost of a consultant, staff recommends continuing to
inventory using AmeriCorps staff.
• Private tree inventory: Due to the cost and logistical challenges of a private tree
inventory process, staff does not support a private tree inventory process and believes
that additional tree health and canopy dollars could be more effectively allocated.
Study session meeting of August 28, 2023 (Item No. 2) Page 9
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
•Establishing a long-term canopy goal: Staff recommends establishing a long-term tree
canopy goal, with the understanding that, in the short-to-mid-term the city should
expect to see a reduction as EAB infested trees die.
•Enforcing tree protection during construction: Staff recommends exploring the cost of
additional staff trained to inspect for and enforce around tree protection.
•Protecting trees through treatment: Staff recommends expanding treatment programs
to provide higher discounts to environmental justice areas of the city in a similar way
that we do for the full-service tree sale. Staff further recommend including Dutch elm
disease treatments in public trees. Both of these changes would increase the amount of
funding needed annually to maintain the public tree canopy. A portion of the funds
(those currently dedicated to private tree injections) could come from the Climate
Investment Fund.
•Young tree watering: We have reassigned seasonal staff to help with watering of public
trees. If we continue to see drought conditions, in future budget years, additional
seasonal staff and equipment will be needed to help with tree maintenance if we want
to ensure that an acceptable number of public trees reach maturity.
•Heritage tree designation for removal of trees from commercial lots: Direct staff to
update the city zoning code to include a heritage tree provision and better protect
heritage trees. The city recognizes that the impact of their removal is greater upon our
current canopy, as they are of higher value and contribute more benefits. These changes
could include fee or formula changes.
•Tree ordinance for existing residential properties: Staff believes it would require more
resources to enforce and administer such an ordinance, and more resources than may
be justified and available. Staff believes that efforts should focus on the changes to
existing policies described above and not expand the scope of properties the policies are
applied to.
•Landscaping plan “credits” for existing mature trees: Staff could explore an incentive for
preserving heritage and significant trees in the zoning code. The landscaping section of
the code also applies formulas for new commercial developments and expansions to
determine the number of plantings that are expected. The code could discount the
number of new tree plantings required when heritage trees or significant trees are being
preserved on the property.
Next steps
If council wishes to establish a tree canopy goal or any of the policy ideas described in this
report, staff will discuss and return to council at a future date.
St. Louis Park Tree Policy MEMO
December 4, 2022
From: Environment & Sustainability Commission (ESC)
To: St. Louis Park City Council
Our city’s tree canopy impacts the health and wellness of residents and the efficacy of our
Climate Action Plan goals. Unfortunately, the canopy and overall biomass within our city has
been on the decline for some time. While drought, disease, development, and lack of
preservation policy are all broad causes of canopy decline across the city, the history of
industrialization and redlining in certain neighborhoods has led to an inequitable distribution of
tree cover in St. Louis Park. According to the Growing Shade App, St. Louis Park had an
existing tree canopy coverage of 34.6% in 2021 with census block groups ranging from 12% to
54.1% canopy. Growing Shade recommends a goal of maintaining at least 45% tree canopy
across all groups.
Our city has a lot to be proud of regarding our efforts to grow and maintain the tree canopy.
● Tree planting - about seven hundred trees this year
● Prioritizing neighborhoods of opportunity
● EAB treatment of most Ash trees over fifteen inches
● Watering to protect trees from droughts in 2021 and 2022
● Buckthorn removal
● Good collaboration between city departments
● Knowledgeable staff
We also have significant challenges to tree health, including Emerald Ash Borer infestation, and
prolonged periods of drought mixed with short, intense rainfall episodes due to climate change.
As City Council may be looking to update policies related to trees, the ESC would like to
bring forward some ideas for you to consider:
● Implement a replacement program for trees removed on commercial properties such as
Target, Byerly’s, Cambridge industrial area, and others.
● Further implement and monitor tree cover standards for new and existing parking lots.
○ For new parking lots, consider how to better enforce code requirements for new
parking lots. Current code requires a landscape island for every fifteen stalls that
is at least five feet deep, two canopy trees per island, irrigation, plus screening
and perimeter plantings. The green building policy requires plant species and
systems that reduce the amount of water used for irrigation.
○ For existing parking lots, monitor the outcomes of the forthcoming depaving pilot
program, which will incentivize businesses to retrofit their parking lots with green
space (including trees). Existing parking lots are where more tree cover is most
needed, so it is crucial to recruit businesses to participate.
Study session meeting of August 28, 2023 (Item No. 2)
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Page 10
○ Tree plantings could be matched with rain gardens around applicable parking lot
storm drains.
○ See this interesting EPA memo with an example from Maplewood Mall:
https://www.epa.gov/sites/default/files/2016-11/documents/final_stormwater_tree
s_technical_memo_508.pdf
● Implement a replanting program for trees along the Light Rail corridor once targeted
areas can be identified so as to not interfere with light rail and freight train movement.
Replant trees wherever possible along Cedar Lake Trail, along with native plants. Our
understanding is that thousands of trees have been lost due to light rail construction
throughout St. Louis Park and neighboring cities.
● Encourage even more proactive approaches to engaging St. Louis Park residents in tree
planting and maintenance.
○ Include residents in tree selection (within species diversity guidelines), planting,
and low-lift maintenance (ex: watering) when planting new trees on right of ways/
boulevards in front of homes. Our understanding is that the city does try to
include residents, but residents might not know enough about this process.
○ Offer educational and outreach opportunities from foresters to residents.
○ Offer opportunities for residents to adopt trees to water on public land, similar to
storm drain adoption.
○ Promote edible landscaping to build connections to land, including orchards and
individual fruit trees, edible windbreaks, and living fences.
● Provide additional monitoring to consistently protect trees from construction damage on
private and public land.
● Focus on EAB treatment for the best large trees (ex: greater than 24 inches) on public
and private land. Our understanding is that treatment is more cost effective than removal.
● Where possible, use large tree stock (ball and burlap) for replacement on public land.
● Improve the current tree preservation and replacement ordinance by adding a heritage
tree classification for large native species to allow the largest trees within the community,
which provide the greatest shade and carbon sequestration, to be preserved, or require a
higher fee-in-lieu for heritage trees than for other trees.
● Set an overall tree canopy goal for the city with a target achievement date (2040) and set
achievable annual benchmarks on a scaled increase as new trees mature.
● Work with Xcel Energy to jointly prioritize powerline burial to protect current and future
trees from systematic damage and disfigurement, open more usable canopy space,
reduce fire risk, and enhance public safety. We recommend this measure to be
Page 11 Study session meeting of August 28, 2023 (Item No. 2)
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
negotiated into future franchise agreements as a shared investment between St. Louis
Park and Xcel Energy.
● Provide funding for additional staff and training to allow for more proactive tree planting,
protection, maintenance by city foresters, and enforcement/inspections of
vegetation/zoning ordinances.
Thank you for your consideration,
St. Louis Park Environment & Sustainability Commission
Page 12 Study session meeting of August 28, 2023 (Item No. 2)
Title: Tree preservation and planting strategies for setting and reaching a canopy goal
Meeting: Study session
Meeting date: August 28, 2023 Written report: 3
Executive summary
Title: Proposed FOG and backflow prevention programs update
Recommended action: None. The purpose of this report is to update the council on the public
process and draft ordinance development following the April 10, 2023 council discussion.
Policy consideration: Does council wish to proceed with first reading of an ordinance
establishing a backflow prevention assembly registration and a fats, oils, and grease (FOG)
producer license in the St. Louis Park City Code?
Summary: To inform property owners who may be impacted by the proposed programs,
postcards were mailed in June 2023 to businesses and homes with known backflow prevention
assemblies and/or producers of FOG to attend one of two duplicate presentations offered on
July 11, 2023 at City Hall to learn about the proposed programs. Two building owners
participated with some questions and overall supported the proposed registration and licensing
programs to protect our city water system and prevent sewer backups.
The draft ordinances attached for council review will create 1) a registration program for all
backflow prevention assemblies to verify annual testing as required by the MN State Plumbing
Code to ensure proper operation; and 2) establish an annual business license for FOG
generating businesses that discharge into the city sewer for helping ensure proper
maintenance/cleaning of grease interceptors and provide for inspections to verify.
To help achieve ongoing compliance with these public utility protection programs with minimal
staff time or legal involvement, staff proposed a compliance tool that serves as an alternative
to criminal prosecution. Service charges for backflow non-compliance will be included on utility
bills and a failure to pay the provisional FOG license fee will result in the fee being certified to
the property. Both of these provisions are included in the draft ordinance.
Financial or budget considerations: Administering these programs effectively will require an
added permit technician position as requested in the proposed 2024 operating budget. A
corresponding $100,000 projected revenue is expected to cover total personnel costs.
Proposed fees of $40 per backflow device, $400 per FOG license, and $1,100 for a provisional
license when regular city cleaning of the sewer mains is required.
Strategic priority consideration: St. Louis Park is committed to continue to lead in
environmental stewardship.
Supporting documents: Draft of proposed ordinance
Prepared by: Brian Hoffman, director of building and energy
Reviewed by: Jay Hall, public works director; David Skallet, chief building official
Approved by: Kim Keller, city manager
Study session meeting of August 28, 2023 (Item No. 3) Page 2
Title: Proposed FOG and backflow prevention programs update
ORDINANCE NO. ______-__
CITY OF ST. LOUIS PARK
HENNEPIN COUNTY, MINNESOTA
ORDINANCE AMENDING CHAPTER 6 AND CHAPTER 8 OF THE ST. LOUIS PARK CITY CODE,
ADOPTING ARTICLE X CONCERNING BACKFLOW PREVENTION AND SUBDISIVION IV
ESTABLISHING A GREASE PRODUCER LICENSE.
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. Chapter 6 of the St. Louis Park City Code is hereby amended to create Article
X, to read as follows:
Article X. Backflow Prevention
Sec. 6-312. Purpose; program.
A program is hereby established to monitor the installation, removal, replacement,
relocation, and maintenance of regulated backflow prevention assemblies. The intent of the
program is to protect the public health and sanitation from potential contamination of the public
water supply system.
Sec. 6-313. Registration required.
All new and existing properties using a regulated backflow prevention assembly
connected to the municipal water supply must obtain a registration for each assembly with the
city. Regulated backflow prevention assemblies subject to this program shall be those identified
in the Minn. State Plumbing Code, Minn. Rule 4714 which are of a design intended to be tested
for operation. Regulated backflow prevention assemblies may not be removed from any location
where they are required except for during repair or replacement.
Sec. 6-314. Fees.
The city's registration fee for a regulated backflow prevention assembly shall be
established by the City Council in Appendix A.
Sec. 6-315. Maintenance and testing.
The owner of a regulated backflow prevention assembly shall ensure the assembly is
maintained in proper working order and shall cause the assembly to be inspected and tested
periodically to ensure the assembly is functioning as intended. Testing intervals shall not exceed
one (1) year. Testing shall also occur each time a regulated backflow assembly is installed or re-
built. If unusual circumstances exist for any regulated backflow assembly, the city may require
more frequent testing. All testing and work on regulated backflow assemblies must be
Study session meeting of August 28, 2023 (Item No. 3) Page 3
Title: Proposed FOG and backflow prevention programs update
performed by individuals with the appropriate state license or certification to conduct backflow
assembly testing or maintenance.
Sec. 6-316. Submit testing report and fee.
All information requested on the city provided test report shall be completed by the tester
and a copy shall be submitted to the city, along with the registration fee, within thirty (30) days
of the test date.
Sec. 6-317. Enforcement and penalties.
Failure to comply with maintenance and testing requirements outlined in Sec. 6-315 and
6-316 will result in noncompliant status with the city’s backflow prevention program. The city will
notify in writing each property owner that is delinquent in submitting annual backflow
prevention assembly tests. The first written notice shall give the property owner a maximum of
30 calendar days to have the backflow prevention assembly tested and submitted. Each property
owner that fails to comply after receiving the first written notice shall be issued a second notice
along with a noncompliance service fee that will be added to the monthly utility bill for the meter
service associated with the regulated backflow prevention device. The service fee for the city to
obtain compliance with the backflow prevention program shall be established by the city council
in Appendix A and shall be charged for each month that the device remains noncompliant.
Charges made for service rendered shall be as nearly as possible proportionate to the cost of
furnishing the service. Unpaid service charges may be certified to the county auditor in
accordance with Minn. Stat. § 444.075, subd. 3e. Untested or nonfunctioning backflow
prevention devices may result in disconnecting the water service for conditions threatening the
public water supply.
Section 2. Chapter 8, Division 3, Subdivision IV of the City Code is hereby amended to
read as follows:
Subdivision IV. Grease producer license
Sec. 8-238. License required.
Any commercial or manufacturing businesses generating animal or vegetable fats, oils, and
greases (“FOG”), through food preparation, service, manufacturing, or other products are not
permitted to discharge such substances into the city sanitary sewer system without first
obtaining a Grease Producer License or Provisional Grease Producer License from the city.
Sec. 8-239. Licensing process.
(a) Application. Applicants for a Grease Producer License or Provisional Grease
Producer License shall submit a completed application to the City's Licensing Department on a
form provided by the city for such purpose. The application shall include relevant business
information, contact details, and any other required documentation as determined by the city.
Study session meeting of August 28, 2023 (Item No. 3) Page 4
Title: Proposed FOG and backflow prevention programs update
(b) Review. The city will review the submitted applications to determine compliance
with the licensing requirements. Applications for a Grease Producer License shall be evaluated
based on the installation and maintenance of grease interceptors or approved FOG control
devices. The City may request additional information or conduct site inspections, if necessary,
to assess compliance.
(c) Issuance. Upon successful review and evaluation, the City's Licensing
Department shall approve the application and issue the appropriate license:
1. A Grease Producer License shall be granted to FSE and commercial/industrial
businesses that have installed and maintained compliant grease interceptors
or FOG control devices.
2. A Provisional Grease Producer License shall be granted to buildings that are
required to be licensed but do not currently have a proper grease
interceptor. The holder of a provisional license shall be subject to an
incremental fee increase for each year that the licensee fails to install a
complaint interceptor.
(d) Fees. Licensees shall pay the appropriate fees as established by the city council in
Appendix A. The fee for a Provisional Grease Producer License shall be subject to annual
incremental increases and shall be established to recover the licensing and added city cost for
cleaning the public sewer main receiving the discharge twice annually.
(e) Term and Renewal. All licenses issued under this Subdivision are issued for the
calendar year and are effective from the date of issuance through December 31 of the year in
which the license is issued. For license applications received within the last 30 days of a
calendar year, the license issued will be effective from the date of issuance until December 31
of the following year. Licensees may submit renewal applications accompanied by updated
information. A Grease Producer License renewal application should also be submitted with
evidence of ongoing compliance with the FOG control requirements.
Sec. 8-240. Regulations.
(a) Interceptor Required. All businesses generating FOG which may be discharged
into the city sanitary sewer system must have a functioning grease interceptor, unless such
business holds a Provisional Grease Producer License.
(b) Building Code Compliance. All grease interceptors must be sized and installed in
accordance with the Minnesota Plumbing Code. They shall be located before fats, oils, and
greases enter into the building sewer, or may be located outside before discharging into the
sanitary sewer service.
(c) Operation and Cleaning. All businesses with a Grease Producer License generating
FOG must comply with the following requirements for operation and cleaning of its grease
interceptor:
Study session meeting of August 28, 2023 (Item No. 3) Page 5
Title: Proposed FOG and backflow prevention programs update
1. Regular cleaning of the grease interceptor is required. Depending on the interceptor
size and the amount of FOG being treated, removal of trapped sludge from the
interceptor may need to be done as frequently as weekly or annually. At minimum, all
exterior interceptor tanks must be emptied annually.
2. The license holder or their designee must perform regular inspection of the interceptor
to determine when cleaning of trapped sludge and scum is necessary.
3. Cleaning can be completed by the owner, an employee, or hired service company.
4. Cleaning must be done before the interceptor becomes full and ceases to trap FOG.
5. All removed FOG must be disposed of properly. Proper disposal shall require placing
FOG in a tight fitting container for a sanitary landfill or recycling.
6. Commercial pumpers cleaning exterior underground tanks must transport the pumped
liquid and FOG to a Metropolitan Waste Control Commission approved disposal station.
7. Each time that the interceptor is cleaned or maintained, an interceptor maintenance
log sheet must be completed with date, type of service performed, and who did the
work.
8. Maintenance logs and receipts from hired cleaners must be retained by the licensee for
at least a year. Log sheets shall be available when requested during the inspection and
submitted with the next year annual license application.
(d) For businesses that hold a Provisional Grease Producer License, the city will
regularly clean the sewer main in front of the property and downstream pipe to remove
accommodated FOG being discharged from the building sewer and entering the city mains.
Sec. 8-241. Inspections and compliance.
(a) The city shall conduct periodic inspections of grease interceptors at least annually
to ensure compliance with the licensing requirements and FOG control measures. More frequent,
monthly inspections may be required by the city based on the interceptor capacity and quantity
being discharged through the interceptor.
(b) Licensees shall cooperate with inspectors, provide access to premises, and provide
necessary documentation relating to grease interceptor maintenance and FOG control. Log
sheets must be available for review by the city inspector during interceptor inspection.
(c) Licensees operating with a Grease Producer License that fail to adequately control
FOG discharge or properly maintain grease interceptor equipment shall be issued a Provisional
Grease Producer License, upon notice, and shall be required to submit the corresponding fee.
The Provisional license will remain in effect for a minimum of one year and until the next annual
license cycle.
(d) Failure to comply with the licensing requirements or demonstrate adequate FOG
control may also result in penalties, fines, or suspension of the license until compliance is
achieved.
Sec. 8-242. Enforcement.
Study session meeting of August 28, 2023 (Item No. 3) Page 6
Title: Proposed FOG and backflow prevention programs update
(a) Any commercial or manufacturing businesses generating FOG into the city
sanitary sewer system that has failed to pay the fee for a Provisional Grease Producer License
shall be billed a sewer cleaning fee, as established in Appendix A, to recover the added city cost
for cleaning the public sewer main receiving the discharge without a Provisional Grease Producer
License being in place. Such fee shall be added to the monthly utility bill for the service associated
with the property.
(b) The owner of the real property from which FOG is being discharged into the city
sanitary sewer system will be notified when thirty (30) days have elapsed since a grease producer
located on their property has failed to pay any applicable fees required under this Subdivision.
(c) Any remaining unpaid service charges under this Subdivision may be certified to
the county auditor in accordance with Minn. Stat. § 444.075, subd. 3e.
(d) The city may enforce the provisions of this Subdivision through misdemeanor
prosecution, administrative penalties, a civil enforcement action, a license suspension or
revocation, or any combination thereof. Any suspension or revocation will be conducted in
accordance with Sec. 8-36.
Sec. 8-243—Sec. 8-275. Reserved.
Section 3. This Ordinance shall take January 1, 2024.
Reviewed for administration: Adopted by the City Council _____________
By __________________________________ By __________________________________
Kim Keller, city manager Jake Spano, mayor
Attest: Approved as to form and execution:
____________________________________ _____________________________________
Melissa Kennedy, city clerk Soren M. Mattick, city attorney
First reading September 18, 2023
Second reading October 2, 2023
Date of publication October 12, 2023
Date ordinance takes effect January 1, 2024
Meeting: Study session
Meeting date: August 28, 2023 Written report: 4
Executive summary
Title: End uses of compost
Recommended action: None. The purpose of this report is to provide an overview of the ways
compost is used in the City of St. Louis Park.
Policy consideration: None.
Summary: The City of St. Louis Park supports the circular bioeconomy created by an organized
compost and yard waste program. Organics and yard waste are collected weekly, sent to a
commercial composting facility and then processed for use back in the community. This
compost can then be used by city staff and residents, creating an end market for the organic
waste created. Compost has multiple benefits, including carbon sequestration, water holding
capacity and plant growth. While staff continue to focus on food waste reduction and
prevention, this process ensures that the organic waste remaining contributes to a healthier
community.
Financial or budget considerations: None.
Strategic priority consideration: St. Louis Park is committed to continue to lead in
environmental stewardship.
Supporting documents: Discussion
Prepared by: Annie Pottorff, sustainability specialist
Reviewed by: Kala Fisher, public services superintendent
Jay Hall, public works director
Approved by: Kim Keller, city manager
Study session meeting of August 28, 2023 (Item No. 4) Page 2
Title: End uses of compost
Discussion
Background:
The City of St. Louis Park’s organics program, adopted in 2013, has diverted an average of 627
tons of food scraps and compostable materials per year over the last five years. Participation is
free for households with city waste collection services and, in 2018, an organics drop-site
program was added to make organics collection more accessible to multifamily residents.
Currently, organics and yard waste are collected weekly by the city’s hauler, Waste
Management, and sent to Specialized Environment Technologies, Inc. (SET) to be commercially
composted. After Oct. 1, 2023 the city’s new hauler for organics and yard waste, Republic
Services and Waste Container Services, respectively, will deliver organics to the Shakopee
Mdewakanton Sioux Community’s (SMSC) organics recycling facility and yard waste will
continue to be delivered to SET. Both facilities process the material, mix it with yard waste into
piles, and monitor the material to kill any pathogens, weed seeds and invasive species. The
material then cures for about six to nine months to properly break down. Before the finished
compost is available for use by customers such as the City of St. Louis Park, the product receives
a Seal of Testing Assurance (STA) to ensure there is no chemical or heavy metal contamination.
The City of St. Louis Park receives a set amount of this STA-certified compost annually by
contract for use by residents in their lawns and community gardens, or for special events. The
city also purchases compost for special projects and requires compost for various city projects
and policies, as described under present considerations.
This finished STA-certified compost has many beneficial applications:
• Supports plant establishment: adding compost to soil improves tree growth, as roots
can more easily penetrate the nutrient-rich soil.
• Increases plant resilience: compost makes soil more resilient to heavy rains, reduces
erosion, and holds more moisture during dry periods (which reduces water stress).
• Decreases dependence on fertilizers: soils enriched with organic matter produce higher
plant yields than soils fertilized with synthetic chemical fertilizer.
• Prevents pollution: compost-enriched soils can better soak in storm runoff, preventing
contamination to our wetlands, lakes and streams.
• Creates a sustainable closed-loop system: by sending our own food scraps and organic
material (like yard waste) to be made into commercial compost and using that compost
in our own community, we are supporting a circular economy for organics and yard
waste.
• Sequesters carbon: during composting, organic compounds decay and release
approximately 80 percent of their original carbon, the majority of which is released as
CO2. However, the remaining carbon stabilizes into compounds resistant to
decomposition, and at that point can be applied to depleted soils. Instead of being
released into the atmosphere, this remaining carbon is retained in the soil.
o According to the US Composting Council, 1 cubic yard of compost results in 0.35
tons of CO2 sequestered. Alternately, the Environmental Protection Agency
estimates that each ton of food waste that is landfilled releases over 0.76 tons of
methane.
Study session meeting of August 28, 2023 (Item No. 4) Page 3
Title: End uses of compost
Present considerations:
Recognizing the many benefits of compost, the City of St. Louis Park uses compost in a variety
of creative ways:
• Offering free compost to residents each spring and fall at the city brush site for use in
their own gardens and landscaping.
• Supplying city community gardens with compost.
• Requiring city engineered projects to use source separated organic material (SSOM,
made from both food scraps and yard waste) compost rather than soil with no organic
content or compost made from yard waste only. This requirement supports the closed
loop system where the food waste created ends up back in our community in a
productive way.
o SSOM was used in the 2020, 2022 and 2023 pavement management projects, as
well as 36th and Wooddale Avenue and Louisiana Avenue Bridge projects.
• Incorporating a compost requirement to the city’s Green Building Policy: landscaped
areas must incorporate a minimum of 5.0% STA-certified compost.
• Requiring that STA-certified compost is used to receive Depave St. Louis Park funding.
• Using compost as a soil amendment in the city’s annual Arbor Day planting events to
support tree growth.
• Using SSOM compost as needed to amend soils in special service district-maintained
plantings.
Next steps:
Staff will continue to explore additional opportunities to incorporate compost into city projects,
as well as educate the community about how their participation in the organics program helps
achieve Climate Action Plan goals.
Meeting: Study session
Meeting date: August 28, 2023 Written report: 5
Executive summary
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Recommended action: The purpose of this report is to provide the city council with an update
on the Cedar Lake Road and Louisiana Avenue Municipal State Aid (MSA) road projects.
Policy consideration: Does the city council wish to continue to pursue the infrastructure
improvements described in this report?
Summary: On Feb. 6, 2023, the city council approved the preliminary layout for the Cedar Lake
Road and Louisiana Avenue improvement projects. Since that time, staff has been working with
the consulting firm Kimley-Horn on further refining the design of this project. Furthermore, the
recent legislative session resulted in additional funding for this project. This report is intended
to update council on changes to the scope, cost and schedule for these projects. A summary of
the changes to the project discussed in this report:
• Watermain pipe assessment
• Traffic signal
• Stormwater treatment
• City trees
• Project cost and funding
Due to the increase in scope, it will take more time to complete these projects. Instead of these
projects being completed in two years, they will now take three. The updated project phasing
and schedule:
1. Cedar Lake Road rehabilitation (TH169 to Rhode Island Avenue) – Project no. 4023-1100
o Construction 2024
2. Cedar Lake Road (Rhode Island Avenue to Kentucky Avenue) and Louisiana Avenue
rehabilitation (Wayzata Boulevard to BNSF railroad) – Project no. 4024-1100
o Private utility work in 2024 and 2025
o Construction 2025 and 2026
Financial or budget considerations: These projects are included in the city's capital
improvement plan (CIP). The estimated cost for the projects is $28,252,970. Over the past year
and a half, the city has been successful in receiving $14M in federal and state funding. The city's
share of the project cost, $14.3M, will be paid for using MSA and utility funds. Additional
information on project costs and funding is discussed later in this report.
Strategic priority consideration: St. Louis Park is committed to providing a variety of options for
people to make their way around the city comfortably, safely and reliably.
Supporting documents: Discussion
Jan. 9, 2023 study session report
Location map
Prepared by: Joe Shamla, engineering project manager
Reviewed by: Debra Heiser, engineering director
Approved by: Kim Keller, city manager
Study session meeting of August 28, 2023 (Item No. 5) Page 2
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Discussion
Background
On Feb. 6, 2023, the city council approved the preliminary layout for the Cedar Lake Road and
Louisiana Avenue improvement projects. Since that time, staff has been working with the
consulting firm Kimley-Horn on further refining the design of this project. In addition, the
recent legislative session resulted in additional funding for this project. This report is intended
to update council on changes to the scope, cost and schedule for these projects. A summary of
the changes to the project discussed in this report:
•Watermain pipe assessment
•Traffic signals
•Stormwater treatment
•City trees
•Project cost and funding
Due to the increase in scope, it will take more time to complete these projects. Instead of these
projects being completed in two years, they will now take three. Staff recommends that these
projects be bid as two construction contracts. The updated project phasing and schedule:
1.Cedar Lake Road rehabilitation (TH169 to Rhode Island Avenue) – Project no. 4023-1100
o Construction 2024
2.Cedar Lake Road (Rhode Island Avenue to Kentucky Avenue) and Louisiana Avenue
rehabilitation (Wayzata Boulevard to BNSF railroad) – Project no. 4024-1100
o Private utility work in 2024 and 2025
o Construction 2025 and 2026
Cedar Lake Road and Louisiana Avenue are important corridors in our community. These are
Municipal State Aid (MSA) roads eligible for state gas tax dollars to help pay for improvement
projects. To qualify for MSA funding in the future, these roads will be constructed to state aid
standards.
The following items are included in the overall project scope. See the Jan. 9, 2023 study session
report for additional detail:
•New pavement
•Accommodations for bicycles
•Filling in gaps in the sidewalk network
•Enhancements for people walking and rolling, including curb extensions, raised medians,
enhanced crosswalks and upgrades to ensure ADA compliance
•Intersection improvements
•Repair/replace city utilities as needed
Additional investigation: Watermain pipe assessment
To determine the condition of the watermain on Cedar Lake Road and Louisiana Avenue, a pilot
project to assess pipe wall thickness was completed in early June using a new tool called
SeeSnake®.
PICA Corporation – SeeSnake®
This device is inserted into the watermain while in service. It is free-swimming and will assess
wall thickness in the pipe. The device uses magnetic waves to determine the amount of wall
Study session meeting of August 28, 2023 (Item No. 5) Page 3
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
thickness remaining in the pipe. This means that locations that are not leaking yet but have a
high probability of failure can be found before they break. The device can reliably find locations
with wall loss as small as an inch in size. The inspection provided a full 360-degree view of the
pipe with structural integrity shown. This allows for planned replacement of areas with a higher
risk of failure to be incorporated into the capital improvement plan.
Results from the assessment provided information on individual pipe segments. Staff
recommends the replacement of about half the pipe under the roads included in these projects.
The pipes selected for replacement contain segments that have pipe wall thickness loss of 60%
or more. It is expected that the remaining pipe will be replaced in 30 years when these roads
are next up for reconstruction.
Additional investigation: Traffic signals
Additional study was needed on the traffic signals on Cedar Lake Road to determine if they
would be reinstalled as a part of this project. The locations of the traffic signals are Cedar Lake
Road at Texas Avenue and at Nevada Avenue.
An initial review of the intersections indicated that they do not meet the minimum criteria for
signalization. When an intersection does not meet these criteria, it is not eligible for state or
federal money for reconstruction.
A summary of the additional review and recommendations for these traffic signals is below.
These recommendations will be shared with the public prior to bringing this project back to the
council for final plan approval later this year.
Cedar Lake Road and Texas Avenue
Upon further analysis, it has been determined that the traffic volumes and turning movements
at Texas Avenue and Cedar Lake Road are at a level at which a signal system will help with the
operations of the intersection. Texas Avenue is a primary connection between Cedar Lake Road
and Wayzata Blvd and one of the only local streets that extends from the south city boundary
to the north city boundary, albeit indirectly. Also, staff anticipates higher bicycle and pedestrian
crossings due to the proximity to the middle school and the construction of new pedestrian and
bicycle facilities on the south side of Cedar Lake Road.
The traffic signal at Cedar Lake Road and Texas Avenue is recommended to be included in this
project. The steel poles will be salvaged, painted, and reinstalled. All other components for this
signal will be replaced as they are beyond their useful life.
Cedar Lake Road and Nevada Avenue
The traffic counts and turning movements at this intersection are much lower than at Texas
Avenue. Additional traffic counts were taken on days with normal traffic and during a baseball
tournament on the nearby baseball fields. The results of the traffic study showed that removing
the traffic signal will not significantly change the level of service at the intersection. However,
the bus stops at Nevada Avenue have a higher-than-average number of daily riders. Due to this,
staff recommends replacing the signal with a rectangular rapid flashing beacon (RRFB) to help
pedestrians and bicyclists cross Cedar Lake Road.
Study session meeting of August 28, 2023 (Item No. 5) Page 4
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Stormwater treatment
The stormwater treatment requirements for road construction projects changed in late 2022,
and there was not adequate time to understand and incorporate the needed improvements
into the preliminary design. To meet the new requirements, the city will need to install an
infiltration basin. Over the last six months, staff has been working with the consultant on the
design of stormwater treatment within the corridor.
Staff has reviewed several locations along the corridors to identify areas that could be used for
stormwater treatment. The goal was to find an area that was large enough to be able to meet
the requirements for both projects in one location. The area that works best from a cost and
benefit to the city is the parking lot at Westwood Lutheran Church. Staff has met with the
church to discuss the possibility of obtaining an easement to be able to construct an infiltration
system below their parking lot, and they are receptive to the idea. Staff will be obtaining
additional information about the soils under the parking lot to determine if an infiltration basin
will work in this location.
The estimated increase in cost is $1.5 million for this system. These costs have been included in
the updated cost estimate.
City trees
Throughout the design process, staff has been working with the consultant to limit the amount
of tree removal. The approved preliminary layout of Cedar Lake Road identified that 65 trees
were impacted by construction and needed to be removed. The city hired a tree consultant to
review all the trees along the corridor to determine the health and condition of the trees. Of
the 65 trees that were planned for removal, eight trees were determined to be in such a
condition they needed to be removed regardless of the project (e.g., they were dead or
diseased).
The preliminary layout (30% plan) is only two-dimensional as it doesn't consider the changes in
elevation needed to build the project. Now that the plans are further along (60% plans), the
consultant has reviewed the tree impacts for this project and has determined that an additional
four trees will need to be removed, increasing the total to 69. Besides elevation differences,
there are other reasons why more trees need to be impacted. One of the additional tree
removals was needed to save the entrance monument in front of PSI school. Another tree
removal was needed to allow a resident enough space to park in their driveway. The average
size of the four additional trees that will be removed is 8 inches in diameter.
Staff is planning to bid a separate project in late 2023 for the removal of the trees on Cedar
Lake Road between Jordan Avenue and Rhode Island Avenue. We were informed during the
environmental review of the project that there is a possibility that northern long-eared bats
(which are endangered) could be in the area. Removing trees in late fall/winter protects bats as
they do not roost during those times of the year.
Phase 2 of the project is currently still at preliminary design (30% plans). In 2024, the consultant
will further refine the plan to prepare construction documents for that phase. Like Phase 1, it is
possible that there will be additional tree impacts identified during the final design.
Study session meeting of August 28, 2023 (Item No. 5) Page 5
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Easement acquisition
The cost of easements has increased since January. One of the main reasons for the increase in
easement costs is the need to obtain an easement for the storm infiltration basin in the
Westwood Church parking lot. Also, the property appraiser recently reviewed our cost
estimates for easement acquisition, and we were informed that our estimates were lower than
current market value estimates. The costs provided in the financial or budget consideration
section show the updated estimates for easement acquisition.
The consultant is working on appraisals for 55 properties along Cedar Lake Road from Jordan
Avenue to Nevada Avenue. Some of the easements are temporary for the construction of the
improvements and some are permanent to construct the sidewalk. All easements needed for
the project must be obtained before the project can be advertised for bid.
Engineering and administration cost
The engineering and administrative estimated costs for these projects have increased due to
the changes in scope and funding sources. Industry standard for engineering costs on
construction projects can range from 20% to 35%, depending on the complexity of the project.
For estimating purposes, we usually use 25% for consultant-designed projects; however, this
project now has both federal and state funding, increasing the complexity of pre-design, design,
construction documentation and reporting to meet the requirements of these agencies. Due to
this, we recommend that the estimated engineering costs be changed from 25% to 30%.
Financial or budget considerations
These projects are included in the city's capital improvement plan (CIP). The updated cost
estimate is $28,252,970, an increase of $7.9M from the Jan. 2023 estimate of $20,383,590. In
2022, staff presented a preliminary CIP funding plan for this project that included $17M in
general obligation (GO) bonds; at that time, the cost estimate was $21.2M.
Over the past year and a half, the city has been successful in receiving $14M in federal and
state funding. In addition, the state legislature recently approved an increase to the gas tax, and
this will result in additional MSA funds being available to the city. To minimize the impact of
this project to property owners, the funding plan has been refined to eliminate general
obligation bonds in their entirety; in their place staff is recommending bonds backed by MSA
funds. The breakdown of the funding can be seen in the tables below.
Study session meeting of August 28, 2023 (Item No. 5) Page 6
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Cedar Lake Road and Louisiana Avenue overall project cost (2024-26)
Description 2022 CIP Engineer's est.
Jan. 2023
Engineer's est.
Aug. 2023
Construction cost $15,335,498 $14,706,872 $19,998,470
Engineering and administration (25%) $3,833,875 $3,676,718 $5,734,500
Easement acquisition/ right of way $2,125,000 $2,000,000 $2,520,000
Total $21,294,373 $20,383,590 $28,252,970
Funding Sources
GO bonds (bikeway and sidewalk) $6,287,303 $2,922,387 $0
GO bonds (roadway) $10,744,750 $4,988,966 $0
MSA bonds $0 $0 $3,120,207
MSA $2,800,000 $2,115,442 $6,537,823
Sanitary sewer $69,375 $69,375 $50,000
Watermain $251,475 $289,725 $3,403,470
Stormwater utility $1,141,470 $997,695 $1,141,470
Federal aid $0 $7,000,000 $7,000,000
Congressionally directed spending $0 $2,000,000 $2,000,000
State appropriation $0 $0 $5,000,000
Total $21,294,373 $20,383,590 $28,252,970
Due to the change in scope, it will take more time to complete these projects. Instead of these
projects being completed in two years, they will now take three. What follows is a summary of
the costs based on this updated project phasing and schedule:
2024 Cedar Lake Road (TH169 to Rhode Island Avenue) – Phase 1
Description Engineer's estimate
Construction cost $7,772,068
Engineering and administration (30%) $2,250,000
Easement acquisition/ right of way $1,020,000
Total $11,042,068
Funding Sources
MSA bonds $0
MSA $3,800,530
Sanitary sewer $0
Watermain $1,218,735
Stormwater utility $81,470
Federal aid $1,941,333
Congressionally directed spending $2,000,000
State appropriation $2,000,000
Total $11,042,068
Study session meeting of August 28, 2023 (Item No. 5) Page 7
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
2024 Cedar Lake Road and roundabout (Rhode Island Avenue to Kentucky Avenue) – Phase 2
Description Engineer's estimate
Construction cost $6,607,993
Engineering and administration (30%) $2,975,000
Easement acquisition/ right of way $1,500,000
Total $11,082,993
Funding Sources
MSA bonds $1,250,000
MSA $1,588,912
Sanitary sewer $0
Watermain $1,073,415
Stormwater utility $700,000
Federal aid $3,470,667
Congressionally directed spending $0
State appropriation $3,000,000
Total $11,082,993
2026 Louisiana Avenue (Wayzata Boulevard to Cedar Lake Road) – Phase 2
Description Engineer's estimate
Construction cost $5,618,409
Engineering and administration (30%) $509,500
Easement acquisition/ right of way $0
Total $6,127,909
Funding Sources
MSA bonds $1,870,207
MSA $1,148,382
Sanitary sewer $50,000
Watermain $1,111,320
Stormwater utility $360,000
Federal aid $1,588,000
Congressionally directed spending $0
State appropriation $0
Total $6,127,909
Study session meeting of August 28, 2023 (Item No. 5) Page 8
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)
Next steps
The addition of watermain to these projects will change the overall cost and duration of the
project. Staff has reviewed the construction schedule and has determined that with the
addition of the recommended replacement quantity of watermain, this project will change from
a two-year project to a three-year project, with construction in 2024, 2025, and 2026 (see
attached map). The anticipated project schedule is as follows:
#CedarLou Phase 1 (2024)
60 percent plans complete August 2023
90 percent plans complete November 2023
Final plan public engagement Fall 2023
City council approval of final plans Winter 2023
Tree removal of impacted trees Winter 2023
Phase 1 easement acquisition complete Spring 2025
Private utility relocations on Cedar Lake Road Spring 2024
Reconstruction Cedar Lake Road (Jordan Avenue to Rhode Island Avenue) 2024
#CedarLou Phase 2 (2025-26)
Private utility relocations for 2025 construction areas Fall 2024
60 percent plans complete Summer 2024
90 percent plans complete Fall 2024
Final plan public engagement Fall 2024
Phase 2 easement acquisition complete Spring 2025
Reconstruct Cedar Lake Road (Rhode Island Avenue to Kentucky Avenue) 2025
Reconstruct intersection of Cedar Lake Road and Louisiana Avenue 2025
Reconstruct Louisiana Avenue north of the roundabout to Wayzata Boulevard 2026
CEDAR LAKE RD LOUISIANA AVE S22NDST W
18THST W
16THST W
CEDARMANOR LAKE
HANNAN LAKE VICTORIA LAKE
COBBLECREST LAKE
WESTWOODLAKE
WESTLING POND
Northside
Park
Lamplighter
Park
CedarKnoll Park
Westwood Hills
Nature Center
29TH ST W
MINNETONKA BLVDHIGHWAY 16914TH ST W
WAYZATABLVD
28TH ST WTEXASAVESINTERSTATE 394
27TH ST W
22ND ST W
CLUB RD
24TH ST W PENNSYLVANIA AVE SVIRGINIA CIR N
RHODE ISLAND AVE SFLAG AVE S25TH ST W
ZINRAN AVE SFRANKLINAVEW
VICTORIA WA
YUTAHDR
VIRGINIAAVESKENTUCKY AVESWESTWOOD H
ILLS
DRBURD PLWYOMINGAVESGETTY
S
BURGAVESQ
UEBEC
AVE
S
OREGON AVE S18TH ST W
16TH ST W13THLNW
26 T H S T WHILLSBOROAVESFAIRWAYLN
BOONEAVES
JORDANAVESINDEPENDENCEAVESW ESTMORELANDLN
O
R
EGONCT13 1/2 ST W
QUE
BECDR
AQUILAAVESMARYLAND AVE SNEVADA AVE SDECATUR AVE SVIRGINIA CIR S
22ND LN W
Y UKONAVES23RD ST W
TEX A TONKAAVEUTAH AVESCAVELL
A
VESSTANLEN RD
XYLONAVESEBI394TOLOUISIANAAVES
WESTWOODHILLSCURV0 0.5 10.25
Miles
Cedar Lake Road and Louisiana Avenue Improvements
Legend
2024 construction
2025-2026 construction
Municipal boundary
RHODEISLAND
A
V
ESSUMTERAVESPage 9
Study session meeting of August 28, 2023 (Item No. 5)
Title: Cedar Lake Road and Louisiana improvement projects update (4023-1100 and 4024-1100)