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HomeMy WebLinkAbout2024/09/16 - ADMIN - Minutes - City Council - RegularOfficial minutes City council meeting St. Louis Park, Minnesota Sept. 16, 2024 1. Call to order. Mayor Mohamed called the meeting to order at 6:19 p.m. a. Pledge of allegiance b. Roll call Council members present: Mayor Nadia Mohamed, Paul Baudhuin, Tim Brausen, Sue Budd, Lynette Dumalag, Yolanda Farris, and Margaret Rog Council members absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), deputy city manager (Ms. Walsh), community development director (Ms. Barton), administrative services director (Ms. Brodeen), city assessor (Mr. Bultema), finance director (Ms. Cruver), facilities superintendent (Mr. Eisold), accountant (Ms. Finkel), recreation superintendent (Ms. Friederich), public works director (Mr. Hall), community development intern (Mr. Hansen), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), police chief (Mr. Kruelle), interim fire chief (Mr. Scott), deputy city clerk (Ms. Scott-Lerdal), communications and technology director (Ms. Smith), park superintendent (Mr. Umphrey), human resources director (Ms. Vorpahl), planning manager (Mr. Walther), parks and recreation director (Mr. West), sustainability manager (Ms. Ziring), city assessor (Mr. Bultema) 2. Approve agenda. It was moved by Council Member Farris, seconded by Council Member Budd, to approve the agenda as presented. The motion passed 7-0. 3. Presentations. a. Proclamation observing Latino Heritage Month Mayor Mohamed read the proclamation into the record. She is honored to sign this proclamation that celebrates our diverse community. 4. Minutes. a. Minutes of Aug. 19, 2024 city council meeting It was moved by Council Member Brausen, seconded by Council Member Rog, to approve the Aug. 19, 2024 city council meeting minutes as presented. The motion passed 7-0. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -2- Sept. 16, 2024 b. Minutes of Aug. 19, 2024 city council special study session It was moved by Council Member Baudhuin, seconded by Council Member Brausen, to approve the Aug. 19, 2024 city council special study session minutes as presented. The motion passed 7-0. 5. Consent items. a. Resolution No. 24-103 approving 2025 employer benefits contribution b. Resolution No. 24-104 appointing election workers for the Nov. 5, 2024 state general election c. Resolution No. 24-105 authorizing special assessment for sewer service line repair at 3920 France Avenue South - Ward 2 d. Resolution No. 24-106 to commence eminent domain action for Phase 2: Cedar Lake Road and Louisiana Avenue Improvements project (4024-1100) - Ward 4 e. Resolution No. 24-107 approving off-site gambling for Community Charities of MN Council Member Brausen noted consent agenda item 5a, stating benefits are important to maintain a high-quality workforce. The negotiated cap was held at 11%, for which he thanked staff. Council Member Baudhuin noted consent agenda item 5b regarding election workers and how important their work is to maintain democracy. He thanked workers for their contributions. Council Member Rog noted consent agenda item 5d and stated it is a significant action related to acquiring land for the Cedar Lou project at the cost of $1 million, of which council is aware. It was moved by Council Member Brausen, seconded by Council Member Farris, to approve the consent items as listed; and to waive reading of all resolutions and ordinances. The motion passed 7-0. 6. Public hearings. a. Resolution No. 24-108 approving assessment of delinquent charges Ms. Finkel presented the staff report. Council Member Brausen stated billing notifications are also sent out to residents about fees that are delinquent. He thanked staff for their work on this communication. Council Member Rog asked about the state-funded program that assists low-income residents with tree removal costs, and if that is available retroactively. Ms. Finkel stated she would get back to council with that information. Mayor Mohamed opened the public hearing. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -3- Sept. 16, 2024 Faith Riverstone, 9001 Stanlen Rd., stated she is disabled and low-income. She received her notice on Friday. She receives assistance for her water and energy bills. She noted the state’s timeline for processing assistance is 60 days and if the levy is approved, the delinquent fee will go onto her property taxes. The water bill assistance program will not pay her taxes. She noted her specific case will be removed from the levy according to Ms. Finkel, but she is speaking on behalf of the ten percent of St. Louis Park residents who are disabled, on a fixed income and use these types of programs. She asked the council to consider this and allow due process for residents to state their case and be allowed to negotiate, settle or set up a payment plan. She stated St. Louis Park has always been good about taking care of their residents but feels the water department has not considered people with disabilities or made a way to work with residents on this. Mayor Mohamed stated Ms. Riverstone has every right to stand before the council and address them with her concerns, as does anyone in the city. She thanked Ms. Riverstone for her comments and stated the council takes this concern very seriously and will work with staff. Ms. Keller added staff will be available in the lobby after the meeting to take names and phone numbers of anyone with questions. This will allow staff to get back to residents with answers. Mayor Mohamed closed the public hearing. Council Member Brausen stated this process puts overdue utility fees onto property taxes and at this point, he does not think this procedure can be changed. Mr. Mattick stated that in the case of a proposed change, the policy would be reviewed and staff would bring suggestions back to the council to discuss and decide upon. He added that a change to procedure would be disruptive at this point and he would not recommend it this evening. Council Member Brausen agreed, but added he would like to review and discuss the policy at a later date based on public comments made this evening. He stated this is an established procedure at this time and is how delinquent charge assessments are approved. Council Member Rog thanked Ms. Riverstone for her comments and stated the council was not aware of this issue. She added the council and city do want to take care of residents. She is confident that council will take this concern seriously and agreed that making changes in procedure at this point may not be available. She observed that Ms. Riverstone does seem to be getting the assistance she needs at this point, and added she also wants to further look into this and move in the direction of equity. Council Member Baudhuin added this item was difficult for him to understand and he appreciated Ms. Riverstone’s comments. He stated the council does need to take a closer look at this process and he appreciates further discussion. Council Member Dumalag also thanked Ms. Riverstone for her comments and stated this issue should be flagged to our legislators when the council meets with them as there is a disconnect, adding agencies need to talk to one another when issues like this arise. Council Member Farris agreed and stated there are probably more than ten percent of the city’s population who are struggling with these types of issues. She pointed out that many Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -4- Sept. 16, 2024 people may struggle in silence. She thanked Ms. Riverstone for her comments and said the city will try to help. Ms. Keller stated there is interest from the council to review the delinquent fee assessment process and staff has heard this. A plan of review will be formulated and brought back to council for discussion. Mayor Mohamed agreed, and she added she looks forward to this conversation in the future as well. It was moved by Council Member Brausen, seconded by Council Member Rog, to adopt Resolution No. 24-108 approving assessment of delinquent charges as presented. The motion passed 7-0. 7. Regular business. a. First reading of zoning text amendment - breweries with taprooms in I-G general industrial district Mr. Hansen presented the staff report. Council Member Brausen stated it makes sense to be consistent and appreciated the applicant bringing this forward and the zoning staff making the correction. Council Member Rog asked what is changing. Mr. Hansen stated that taprooms are not currently allowed in breweries in this district. The change will allow taprooms in this district, utilizing up to 25% of their floorplan. It was moved by Council Member Dumalag, seconded by Council Member Farris, to approve the first reading of the zoning text amendment allowing breweries with taprooms in I-G general industrial district and set the second reading for Oct. 7, 2024. The motion passed 7-0. b. Resolution Nos. 24-109, 24-110 and 24-111 to adopt 2025 preliminary property tax levy certification Ms. Cruver presented the staff report. She noted the policy considerations for council are related to the general, EDA levy and HRA levies with an overall preliminary property tax levy payable in 2025 of $49,979,665, a 7.52% increase from 2024 which includes: • $48,598, 532 for core government services and debt payments (general and debt service levies) • $1,194,133 for housing projects and programs (HRA levy) • $187,000 for economic development projects and programs (HRA levy) Ms. Cruver noted that final levy approval will occur on Dec. 16, 2024. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -5- Sept. 16, 2024 Council Member Brausen stated a truth in taxation hearing will be set also. Ms. Cruver confirmed that the hearing will be held Dec. 2, 2024 and information about it will be sent to all residents, along with information posted on the city website. Council Member Brausen noted the projected year's levy and if this reduction down to 7.5% has impacted the projections. Ms. Cruver stated the changes took place in the capital funds, which are based on the projects included in the CIP. Council Member Brausen asked what the 2024 projection was one year ago and did it change with the levy change. Ms. Cruver stated she will get back to council with that information. Council Member Rog asked about the structural deficit. Ms. Cruver stated that capital improvement funds, such as the municipal building fund and the IT fund, have consistently spent more than the levy has brought in. She stated this is an issue that staff first discussed in last year’s budget and that we are continuing on our multi-year plan to close the gap between budgeted spending and ongoing revenue. Council Member Rog asked about the assumption of going from 4.5% to 5% to maintain. She asked if going forward, will the city’s levy increase always be over 5% unless we start to eliminate programs. Ms. Cruver stated that is a fair assumption, adding that can always be reviewed depending on circumstances. Council Member Rog noted moving to bonding for the Municipal Service Center roof makes sense. She asked how much the debt service will add to overall costs. Ms. Cruver stated this is factored into the five-year debt service, but noted there are other road projects that will need to be bonded for. Council Member Rog asked if the park improvement fund is two times the desired balance or two times annual spending, and the need to restore it to current levels. She added those two items seem contradictory. Ms. Cruver stated there is a fund balance in that fund and we want to be sure it will not all be spent down and then increased rapidly up to $900,000, which would be very disruptive to taxpayers. She added it is the balance that needs to be struck. She noted also this forecast restores the levy to the 2024 levy amount which will be a spend down of the fund balance. Council Member Rog asked if the reduced rate for homesteaded properties is new in 2024. Ms. Cruver stated in 2025, there is an increased deduction for homesteaded properties. Council Member Rog asked if the difference balances out the homestead and non-homestead rates, how this works, and if it impacts what the city takes in the property taxes. Ms. Cruver stated there would be a policy change at the state level that would lower collections. She added if there is a reduction in one group, the rest of the groups would cover the taxes. Mr. Bultema added the property tax system is a closed system. For homestead properties, the policy change pushed up how much is excluded and also stretched out the ranges. He added it is advantageous for lower-value properties and less advantageous for higher-value properties. He stated there will be an 80% reduction in property taxes for 4D-1 properties. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -6- Sept. 16, 2024 Council Member Rog asked if the city has met the threshold as set by the state. Mr. Bultema stated that as yet, the city does not qualify. Council Member Dumalag asked how this impacts commercial properties in the city. Mr. Bultema stated it is complicated, as the class rate structures changes were to single-family residential and then affordable housing and apartments. Mr. Bultema added certain sectors have struggled more than others and it is well known the office sector is under stress. He stated the valuations are set based on the market value in the immediately preceding time period and due to that, normally there has been more robust commercial growth which tends to subsidize residential, but that is on a pause for assessment years 2023, 2024 and possibly 2025. Mr. Bultema stated with this pause in the commercial sector, there is more of a burden on residential properties now. Council Member Budd asked what portion of the city’s commercial property is classified as offices. Mr. Bultema stated he can look for that information and get it back to council. Council Member Budd asked about delamination and the $4 million price that is not being incorporated here but noted changes to the mill and overlay process. She asked if the estimated cost is not $4 million, is that amount factored into the plan. Ms. Cruver stated this budget is not recommending a fund increase for mill and overlay work, adding the pavement work is funded in the city by franchise fees, so there is no recommendation for expansion of this funding in 2025. She added that when each area of pavement is evaluated for improvement, delamination will be factored in, but there will be no expansion of roadwork in this budget. Council Member Budd asked if franchise fees are part of the budget discussion. Ms. Cruver stated that no changes to franchise fees are being proposed in the 2025 budget, but that we should consider revising them within the next year or two. Council Member Rog stated there is $330,000 of funding from the state for affordable housing via a new sales tax. She asked if these funds will be used to address the impacts of the 30-day pre-eviction notice. She also noted another $100,000 may be promised for grants also. She asked if this is still the intention. Ms. Cruver stated as it relates to the social service grants, there will be $50,000 available requests. She added there is $100,000 in the housing trust fund and now that will be increased to $200,000 towards social services grant funding agreements that local entities can apply for to assist residents with housing issues. Council Member Rog stated there was a strong recommendation from council that there be a priority for that funding. Ms. Keller stated staff will need to go back to see if a majority of council was interested in putting that funding towards affordable housing and those restrictions. She added usually, we tend to not have restricted use, so the funds can best match the emerging needs of the community. She stated if council decides to work with restrictions, this can be done with the city attorney’s assistance. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -7- Sept. 16, 2024 Council Member Dumalag stated council was going to discuss and review this recommendation before putting that into this levy and budget plan. Mayor Mohamed added she would also like to have that discussion prior to moving forward on a plan such as Council Member Rog noted. Council Member Rog stated she agrees and just wanted to make sure the discussion did not get lost. Mayor Mohamed stated she is proud of the work of staff to bring the preliminary property tax levy down from 9% to 7.5%, adding this is exactly what council was looking for. She stated she is grateful for staff’s detail on the preliminary levy and she will support this 7.5% levy. Mayor Mohamed stated she is glad there is a nice balance showing the city will be fiscally responsible over the next few years. Council Member Brausen also noted that taxes are the cost of doing business for the city, and it is not the council’s intention to make it difficult for taxpayers. Council Member Rog is appreciative of the all-inclusive and transparent levy process, and she appreciates staff for making this happen. Council Member Baudhuin added his thanks again to staff for their work from 9% to 7.5%. He also noted there was a lot of teamwork being done here and he appreciates this. Council Member Dumalag stated she wanted to point out also that this is only one part of resident’s taxes. It was moved by Council Member Brausen, seconded by Council Member Baudhuin, to adopt Resolution Nos. 24-109, 24-110, and 24-111, adopting 2025 preliminary property tax levy certification as presented. The motion passed 7-0. 8. Communications and announcements. Ms. Keller stated the fire department open house is Tues., Sept. 17, at 5:30 p.m. Ms. Keller added there will be an open house regarding the MnDOT project on Wed., Sept. 26, in the city hall community room. Notice will be sent to 3,300 residents and affected properties. Ms. Keller shared that Trellis, a local property ownership, has preserved 56 units of affordable housing in St. Louis Park with the purchase of the five apartment buildings formerly owned by Perspectives. She stated the city is deeply supportive of preserving these units. Council Member Rog stated on Sept. 17, the League of Women Voters is hosting a candidate forum at city hall starting at 7 p.m. in council chambers. Council Member Dumalag encouraged everyone to submit questions. Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4 City council meeting -8- Sept. 16, 2024 9. Adjournment. The meeting adjourned at 7:53 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Docusign Envelope ID: A632B403-A090-4124-85C4-152C913282E4