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HomeMy WebLinkAbout2023/08/07 - ADMIN - Minutes - City Council - Study SessionOfficial minutes City council special study session St. Louis Park, Minnesota Aug. 7, 2023 The special meeting convened at 6:50 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, Nadia Mohamed and Margaret Rog Councilmembers absent: none. Staff present: City manager (Ms. Keller), deputy city manager (Ms. Walsh), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), director of community development (Ms. Barton), finance director (Ms. Cruver), race, equity and inclusion director (Ms. Guess), director of community development (Ms. Barton), communications and technology director (Ms. Smith), administrative services director (Ms. Brodeen), fire chief (Mr. Koering), human resources director (Ms. Vorpahl), parks and recreation director (Mr. West), police chief (Mr. Kruelle), public services superintendent / deputy public works director (Ms. Fisher), city assessor (Mr. Bultema), elections and civic engagement coordinator (Mr. Sund) Guests: Melissa Reed, Park Street Public 1. 2023 state legislative review: financial impact Ms. Reed presented the report. Councilmember Dumalag asked how the numbers are aggregated for construction and maintenance. Ms. Heiser stated the city receives an allocation each year for road maintenance. She added the rest goes for construction projects on roads, such as Cedar Lake Road and Louisiana Avenue. Councilmember Mohamed asked about programs for first generation home buyers. Ms. Barton stated there was funding allocated by the State legislature for that and MN Housing will be administering the program. Councilmember Mohamed asked if this program could be used along with city programs for funding. Ms. Barton stated yes, these programs can be used with city down-payment assistance programs but would not be able to be used in conjunction with the city’s first-generation home buying program. Ms. Reed stated she will also follow up with program details. Mayor Spano asked about the leave policies and how it will affect St. Louis Park. Ms. Vorpahl stated this will take effect Jan. 1, 2024, as well as paid family leave which is set to take effect Jan. 1, 2026. She stated the city’s plan is richer than the state’s plan and options are being reviewed for seasonal employees currently. She added more will be coming forward on this. DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 2 - Aug. 7, 2023 Councilmember Budd stated what the city currently offers (after 80 hours) is 1 hour per 30 hours worked. Ms. Vorpahl stated that is what is being reviewed and for benefit earning employees they likely already receive more than what is listed in the ESST language. Mayor Spano asked about LGA and if the city will be recipients of this. Ms. Reed stated yes, and added the increased weight to commercial and industrial helped and changes to the Local Government Aid formula were made to intentionally include cities in the first-ring suburbs of the metro area so that they received some funding. Ms. Cruver confirmed that in the past this has been used for capital planning. This year, because of the change in the formula and overall increase of $80 million to the LGA fund statewide, the portion allocated to St. Louis Park will be going into the general fund. Staff is confident it will be ongoing. Councilmember Mohamed noted a lot of investment went into education and asked if that funding will help alleviate some of the financial stress that school districts face, and that residents pay in school tax levy. Mayor Spano also asked what financial impacts the legislative session might have had. Ms. Keller stated staff can try and understand what their proposed budget looks like and added that the changing market values of different classes of properties will also change how a levy increase feels to residents over the last few years. Mr. Sund noted council signed a letter supporting funding for Children First and that was included in the state budget this session. Councilmember Rog asked if the legislative session funding for the city has been incorporated into the 2024 budget. Ms. Keller confirmed it has already been incorporated into the budget. Councilmember Budd asked about the change in the tax rate on 4D. Ms. Cruver stated that will be watched closely adding it will not take effect until the next year, and how that feels will depend on property tax levy valuation changes. Councilmember Rog asked how many 4D housing properties are in the city currently. Mr. Bultema stated there are 1,100 currently and stated that any property tax implications will be spread out across the entire tax base, but noted it is too early to tell. Councilmember Dumalag asked if it is still a 40% discount. Mr. Bultema stated no, adding that the new structure is different than the old one. He stated it is now one-fifth of the normal tax burden for a qualified 4D property, adding this is an 80% reduction vs. the 40% reduction in past years. Mr. Bultema pointed out that the law contains elements that maintain affordability and maintenance of the units. Councilmember Rog asked if there is a spend date for the $2.2 million public safety one time allocation to St. Louis Park. Ms. Reed stated there is not and it is a one-time appropriation to be used as the city sees fit. Ms. Cruver added staff is looking at using these one-time funds on public DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 3 - Aug. 7, 2023 safety programs or initiatives that are one-time only as well. She added from there a multi-year plan will be developed for these funds. Councilmember Rog asked what two capital projects the city will lobby for in 2024. Ms. Keller stated staff will come to the council for priorities on this soon. Ms. Heiser noted one is the Oxford/Louisiana reconstruction project and the other is the Highway 100 service road loop as well as the West End pedestrian bike bridge. Councilmember Dumalag asked as the city applies for grants, is it anticipated additional staff will need to be hired to apply for and monitor these grants. Ms. Keller stated there is no budget for hiring any new staff, and they will look at how to accommodate this with current staffing. Councilmember Dumalag asked if any private entities want to apply for grants, will they apply directly to the state or through the city as a pass through. Ms. Reed stated it would depend on the program, as some grants are only available to public entities. Mayor Spano stated that there is likely a large amount of administrative rule-making and what structures can be utilized for grant application remains to be seen. Ms. Reed stated that the work of monitoring the state registrar’s announcements and keeping the council informed is ongoing. Councilmember Budd noted the transportation funds and asked for clarification on “larger cities.” Ms. Reed stated there is a complicated formula for dispersing dollars. She noted half went to counties and half went to cities, and larger cities got 15% of the total reward of $130 million per year. She added it is for cities in the 7-county metro area with over 5000 population. Mr. Sund stated staff will get more details to council about this. 2. Preliminary general fund budget Ms. Cruver presented the staff report. She noted there are two policy considerations for council: • Does council support the recommended general fund budget as presented, understanding that 1) it is a portion of the overall levy increases needed and 2) staff will continue to work toward lowering the levy increases? • Does council support creation of a one-time grant for local non-profit entities? Ms. Cruver noted the following as the baseline general fund budget for 2024: • A general ley increase of approximately 4.5% will be needed to maintain the staff and programs that were approved in the 2023 budget into 2024 • To meet strategic goals and maintain excellent, responsive city services, the city manager recommends increasing spending in the general fund by $364,500, an additional 1.14% levy increase DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 4 - Aug. 7, 2023 Councilmember Mohamed asked for clarification on the recruitment “Jobs in the Park” program. Ms. Cruver stated this is an investment to expand this program and reaching out to youth in the city and recruitment funds are used to get the word out for open jobs. Ms. Keller added that a recruitment coordinator position (repurposed from a vacant position) has resulted in candidate quality and therefore positive additions to the services the city offers. City staff will continue to seek out efficiency in staffing. Councilmember Budd asked about the boulevard tree pruning program and the effects of drought and losses in investment here, and she asked if this will be addressed within the environmental stewardship piece. Ms. Cruver stated this proposal maintains current service levels and matches inflation for contract services. Councilmember Mohamed asked if full investment for requested police sergeant staffing will be going into the 2025 budget. Ms. Cruver stated yes. Councilmember Rog asked for clarification that two sergeants will be paid $180,000 per year. Chief Kruelle stated that is all inclusive with benefits. Ms. Cruver added this will lower the cost in 2024, but it is a tradeoff of using funds the same year they are requested through the levy, and also included in the long-term plan as well. Councilmember Rog asked about the proposed percentage increase in the police department relative to other police departments. Ms. Cruver and Chief Kruelle will get this information to council. Chief Kruelle added that a recent comparison of five neighboring cities (conducted by the City of Minnetonka) showed that St. Louis Park’s agency is comparable. Mayor Spano asked about the downstream costs related to grants and if public safety staff would still be hired if grants were not awarded. Ms. Keller stated there is no plan to bring staff on if the grants were not received, and that the need is recognized regardless of grant outcome. Mayor Spano stated he would like to know long term implications of funds that flowed in and out of local government over the last 4 years, especially related to COVID, and would like to have more information from staff on this. He added that city investments tend to fall into one of three categories: Hiring staff, completing a project, or providing a service. Mayor Spano asked council and staff to consider the life span of an investment’s costs in making decisions. Ms. Cruver stated that the next budget discussion on August 28, 2023 will address ongoing funding requirements, such as those required for emergency response staff. Mayor Spano noted the tree program will not include the service of trimming boulevard trees, nor is the city taking over residential tree pruning. He noted as we see the impacts of climate change, and as he has experienced in the last 12 months, there will be more demand upon the city for guidance on property management. Councilmember Rog stated she is not comfortable with agreeing to staffing increases for the police at this time and added she would like more information and discussion. DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 5 - Aug. 7, 2023 Councilmember Dumalag asked if the public safety aid has been accounted into the budget. Ms. Cruver stated those funds have not been added into the budget because staff anticipates this to be a capital budget item and one-time only funding. However, she added that does not prevent the city from spending the funds as part of the general fund. Councilmember Dumalag asked if this grant is multi-year. Ms. Cruver stated it is a 3-year grant. Councilmember Dumalag asked if this is typical that the grant is multi-year. Ms. Cruver stated it is a long-standing grant and is typically 3 years. Councilmember Dumalag asked if the grant was intended for new hires, and Ms. Cruver responded that the intention is to support new hires as well as increased staffing needs. Councilmember Dumalag stated on the policy question, it feels in line with the city’s priorities, adding she agreed with Mayor Spano’s comments and wanting more information on long-term implications of funds. Councilmember Dumalag asked if the permit fees from fat, oils, and grease program are not being charged. Ms. Keller stated there is an offset on this through fees. Councilmember Budd commented on street delamination in her ward and that residents are concerned there has not been enough budget allocation for this, and asked for confirmation that is not part of this levy discussion. Ms. Cruver stated that will not be part of this levy discussion and will be addressed at the August 28 meeting as part of the capital plan. Councilmember Mohamed stated she also agrees with comments about the investment in the police department but added it has been difficult to hire police officers recently. She noted the services provided for police as part of their employment, including mental health programs, do have to be provided to ensure a good policing program in the city. She added this is how trust is built and shows how we reflect this back to the city, while recruiting and hiring really good candidates. Councilmember Rog stated she is not opposed to paying city police officers well or providing mental health support, adding this is something different and is for hiring two new sergeants specifically. She added around the specific policy question, she does want to hear more about this significant increase in costs to the city before she can get on board with it. She added she is supportive of the rest of the items. Councilmember Farris stated she does support the recommended general fund proposal. She added the things important to her are firefighter staffing, the new police sergeants, and noted she also has interest in racial equity and jobs for youth, which she stated are very important. Chief Kruelle presented details about the proposal for hiring additional sergeants, noting that wellness for sergeants is an area for improvement for the police force. Chief Kruelle included comparison of staff models in Edina and Minnetonka, and that St. Louis Park has remained at current sergeant staffing levels for over two decades. Councilmember Budd thanked Chief Kruelle for his comparisons to other city’s policing models and noted St. Louis Park’s policing model is above and beyond in many ways, including mental DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 6 - Aug. 7, 2023 health for officers. She asked if there is a cost involved with providing this for sergeants. Chief Kruelle stated wellness has been a priority for the entire police force, adding a lot of infrastructure has been put in place. He noted shift coverage can be a problem and some solutions related to supervision have been included, but that sometimes a sergeant is not the one covering a shift, so that is a concern. Councilmember Rog asked if the police then are right sizing the department. Chief Kruelle stated that is correct. Councilmember Rog asked how St. Louis Park police department spending compares to other cities. Chief Kruelle stated he does not have that data with him, but added he can look into that. Ms. Cruver added she can research this also and provide that data to the council. Councilmember Rog stated she holds the police force and Chief Kruelle in high esteem but does feel she needs to keep a check on programs and spending. She asked how the work of the police department around wellness and mental health and advancement compares to other city departments. Ms. Keller stated every department has different pressures and while it is not a one-size-fits-all approach, in her conversations with department leaders, all departments are comparable and also tailored to their specific circumstances. Councilmember Rog asked if the sergeant positions would be filled as internal hires to start, Chief Kruelle responded that he is confident that qualified candidates would come forward. Chief Kruelle added he knows the level of support from the council and understands the need for questions and concerns. Councilmember Rog asked how this increase in the budget will impact residents. Chief Kruelle stated the high standard and high level of service that police provide will be maintained and pushed forward, especially as responsibilities continue to grow. He noted light rail will be an added lift for the city and the police department and ensuring maintaining the standards the city expects will be a priority. Ms. Cruver pointed out that fiscal implications of this budget discussion will also have policy implications that affect specifics within the budget. Ms. Cruver recommended city staff be reminded of this to help close the loop. Councilmember Dumalag stated the city is continually adding new residents with policies around housing, and these new residents do need to be served. Mayor Spano asked how the police currently handle scheduling issues that arise with the three supervisory sergeants. Chief Kruelle stated others are called to cover: either another sergeant does an overtime shift, or a lieutenant, a supervisor, or administrative police officer steps in to assist. Mayor Spano noted that can be an unhealthy environment if someone must work a longer shift, and it is not fair to staff or their families to call folks back into work, but noted he does appreciate the solutions that are provided. DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 7 - Aug. 7, 2023 Ms. Cruver noted the city council August 28, 2023 discussion will address capital plans, park improvements, debt service levy, proposals for HRA and EDA levies, as well as police and fire department sizes. Councilmember Mohamed stated she could support creating a one-time grant for local non-profit entities if there was an application process. She asked if this funding would be for one non-profit organization or if several can apply. Ms. Cruver stated that will be decided by council and staff will want to understand council’s vision of this process. Councilmember Mohamed stated once applications come in, she will be more comfortable with this, and added non-profits that would qualify are organizations that alleviate financial burdens of the city’s lower and fixed income households and youth groups. Councilmember Rog asked if this funding needs to be for public health purposes. Ms. Cruver stated it will need to be within public purpose statutes which are specific. Public health is one of these areas where the city can spend money, as long as it benefits public health. Councilmember Rog stated she thought the public health criteria came from ARPA. Ms. Cruver stated that is true, but the dollars spent on this program would no longer be just ARPA dollars. Councilmember Budd stated she supports this question related to grants for non-profits. Councilmember Rog stated she also supports this, but noted a grant program feels a bit different. Mayor Spano stated he is the most reluctant on this. He noted it will be a one-time only grant, and there is support for this, but it is a large sum of money, and he will want the council to do this methodically and set the right expectation. Ms. Cruver agreed and stated the expectation will be out there, so it will be good for council to think about this. Mayor Spano added he is not sure about funding capital projects, adding he is worried about restricting grants to organizations who do a certain thing only. He stated he would be more comfortable with having an organization present a proposal for a project that would cost $250,000 and it could be a capital project or a program. He stated he is less concerned about the shape and form of it vs. the impact of it. Ms. Cruver added one of the reasons to have a purpose is to establish a program that meets the public purpose. Mayor Spano agreed, adding, however, that feels overly specific, which might miss organizations within the community. Ms. Cruver stated fitting the funding to the city’s strategic priorities will be important to consider. Councilmember Budd stated she would like to see the grants funding organizations that only serve St. Louis Park. Councilmember Dumalag added she is supportive of the amount and the greatest need of an organization serving clients and residents within St. Louis Park. DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80 Special study session minutes - 8 - Aug. 7, 2023 Councilmember Farris agreed that this should be supportive of organizations serving St. Louis Park. Councilmember Rog noted a request a few years back from St. Louis Park students from The Nest. She stated they were granted funding from the city, and added she remains supportive of this, but the process of receiving grant applications and reviewing them is a concern. Mayor Spano added The Nest project was a long process, and they built equity for their cause, and it was on a large scale. He stated he wants to continue to support partners in the community and also in the interest of fairness, the city needs to let everyone know there is an opportunity here. Ms. Keller stated staff will put this application program together with criteria and get it out for applications, and then inform council. Communications/meeting check-in (verbal) Ms. Keller noted on August 15, 2023, at 7 p.m. there is an open house at the Municipal Service Center related to recycling, organics, and trash collection, and all are welcome to attend. The special meeting adjourned at 9:15 p.m. Written Reports 3. Community and civic engagement system wrap up ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 0E55916F-11E5-46E6-B512-D27260E03A80