HomeMy WebLinkAbout08.01.22 Work Session Minutes City of Farmington
City Council Work Session Minutes
August 1,2022
1. Call to Order
Mayor Hoyt called the work session to order at 5:15 p.m.
Present: Hoyt, Bernhjelm, Lien, Wilson
Absent: Porter
Also Present: Lynn Gorski, City Administrator;Julie Flaten,Assistant City Administrator/HR
Director; Chris Regis, Finance Director;Gary Rutherford, Police Chief;Justin
Elvestad, Fire Chief; Kellee Omlid, Parks and Recreation Director;Cynthia Muller,
Administrative Assistant
2. Approve Agenda
MOTION by Lien, second by Wilson to approve the agenda. APIF, MOTION CARRIED.
3. Discussion Items
a. 2023 Draft Budget Discussion
The first draft of the budget was presented at the July 11, 2022, work session. The
net tax levy increase was at 6.16%. Council directed staff to look for areas to reduce
the tax levy, while adding positions. Staff has added the two police patrol positions
to the budget, with effective start dates of July 1, 2023. It will mitigate the impact
on the 2023 budget, but for 2024 these positions would be for the entire year. A
community development position was added with a start date of January 1, 2023, to
take over code enforcement, which is currently outsourced. The effect on the tax
levy by adding these three positions was to increase the levy from the initial draft
levy of 6.16%to 8.08%. An option to maintain the tax levy at 6%is the planned 2023
debt service tax levy in the amount of$276,750 for the Series 2016A bonds. These
bonds will mature as of February 1, 2023. However, there is sufficient cash in the
Series 2016A debt service fund to pay the final principal and interest payment.
Therefore,the planned 2023 levy would not be necessary. Also, the increase to the
community development budget, as a result of the new position, would be offset by
removing the budgeted amount for the code enforcement contract which would be
$60,000. By removing the Series 2016A levy, and another similar reduction, the
2023 budget would be able to add the three new positions and reduce the current
tax levy increase from 8.08%to 5.73%.
Council asked about the 2024 budget numbers. Staff is still refining those numbers.
Council asked about the vehicle leasing program. That will start this year with
leasing police vehicles and will expand into public works vehicles. Council asked if
adding two new police positions will change the strategy knowing we will have to
backfill with retirements in 2024. Staff noted we will have two in training so it is not
realistic to pre-hire. Mayor Hoyt noted we have put a fair amount of emphasis on a
five to ten-year summary. Through the first part of June we pushed things out. He
would like to look to staffing and what we know is coming and put those positions in
the mix. Council asked regarding Empire, is there anything financially we need to do
if they incorporate? Administrator Gorski noted the fire contract still stands and
Council Work Session Minutes
August 1,2022
Page 2
there will be tax implications with properties coming into the city. Council recalled
there are shared road agreements we won't need.
Council consensus was to stay with the 5.73% net tax levy increase and bring the
preliminary 2023 general fund budget and tax levy to the September 19, 2022, City
Council meeting for approval.
b. Discuss THC—Edible Legislation
The state legislature passed a new law that allows for the sale of certain edible and
beverage products infused with THC. The new law went into effect on July 1, 2022.
The new law is regulated by the MN Board of Pharmacies. The state has not given
cities authority to license this product, and there are many unanswered questions.
Our options are:
1. Do nothing and wait for the legislature to come up with more guidance.
2. Place a moratorium on the testing and sale of THC to officially study it.
3. Treat it like a tobacco license.
Councilmember Bernhjelm suggested treating it similar to a tobacco license and wait
with licensing until January. Council stated the legislature is very ambiguous. Police
Chief Rutherford stated they have not given us the tools to regulate this product.
You have to prove you are 21 to buy it, but there is nothing regulating possession.
Councilmember Porter provided a statement that drug addiction begins with
gateway drugs. This provides relief from pain for chemo treatments, but she is not
comfortable with legalizing the sale of THC products. Councilmember Bernhjelm
stated a moratorium needs to be tied to a reason and the state will work it out. It
gives us time to come up with licensing and regulations. Councilmember Lien stated
all cities around us sell it. We need to stage ourselves for eventual sales.
Councilmember Wilson recommended we do as little as possible. There will be lots
of changes coming through the legislature. Council consensus was to do nothing
and staff should keep council apprised of any issues. Mayor Hoyt suggested staff
look at areas to zone for it. Administrator Gorski noted that will be considered when
we do licensing.
4. City Administrator Update
Construction has started on the parking lots and Spruce Street work will begin the week
of August 15. There are no concerns with the timeframe.
Construction work on the TH3 roundabout is moving along. Mayor Hoyt asked if we
reference the bike and pedestrian plan when doing these projects. That plan is
reviewed.
We will re-post the Public Works Director position.
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August 1,2022
Page 3
Councilmember Bernhjelm asked about the timing of the road being punched through
from 1801h Street into the new development in Lakeville on the east side of Pilot Knob.
Staff will check on that.
Administrator Gorski stated we are moving forward with placing benches in the
downtown this fall. Councilmember Lien asked about doing a memorial project for the
benches.
Staff is working on the design for the well 5 retaining wall and it will be fixed this year.
5. Adjourn
MOTION by Bernhjelm, second by Wilson to adjourn at 6:16 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
Cynthia -'Muller
Cynthia Muller
Administrative Assistant