The URL can be used to link to this page

Home My WebLink About09.18.23 Council Minutes City of Farmington Regular Council Meeting Minutes Monday, September 18, 2023 The City Council met in regular session on Monday, September 18, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. ROLL CALL Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien, Katie Porter and Steve Wilson Members Absent: None Staff Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Leah Koch, City Attorney Deanna Kuennen, Community Development Director Chris Regis, Finance Director Kellee Omlid, Parks & Recreation Director Tony Wippler, Planning Manager Gary Rutherford, Police Chief John Powell, Public Works Director Shirley Buecksler, City Clerk 4. APPROVE AGENDA Motion was made by Councilmember Bernatz and seconded by Councilmember Porter to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays 5. ANNOUNCEMENTS / COMMENDATIONS None. 6. CITIZENS COMMENTS / RESPONSES TO COMMENTS No one addressed the Council. Regular City Council Meeting Minutes ot'September 18,2023 Page 1 of 8 7. CONSENT AGENDA 7.1 Work Session Minutes for September 5, 2023 7.2 Regular City Council Meeting Minutes for September 5, 2023 7.3 Gambling Event Permit for the Knights of Columbus Council 2400 Farmington, November 18, 2023; Resolution R63-23 7.4 Gambling Event Permit for the Knights of Columbus Council 2400 Farmington, February 24, 2024; Resolution R64-23 7.5 Temporary On Sale Liquor License for the Knights of Columbus Council 2400 Farmington, October 29, 2023, at Church of St. Michael, 22120 Denmark Avenue 7.6 Temporary On Sale Liquor License for the Knights of Columbus Council 2400 Farmington, November 18, 2023, at Church of St. Michael, 22120 Denmark Avenue 7.7 Temporary On Sale Liquor License for the Knights of Columbus Council 2400 Farmington, February 24, 2024, at Church of St. Michael, 22120 Denmark Avenue 7.8 Amendment to Lease Agreement with Legacy Farmington Mall LLC for Farmington Liquor Store, 923 8th Street 7.9 Resolution R61-23 Appointing a Permanent Building Official for the City of Farmington 7.10 Ordinance 023-776 Amending Title 10, Chapter 3, Section 3, 5, and 7 of the Farmington City Code as it Relates to Establishing the City Council as the Authority to Approve or Deny Interim Use Permits and Establishing a Period of Time Before Denied Conditional or Interim Use Permit Applications can be Re-Applied For 7.11 Bills List for August 30 — September 11, 2023 7.12 Staff Changes and Recommendations, Approving the Appointment of Cindy Muller as a Temporary Front Desk Employee 7.13 Updated Fire Department Job Descriptions for Paid-on-Call Assistant Fire Chief, Paid-on-Call District Fire Chief, Paid-on-Call Firefighter-Crew Leader, and Paid-on-Call Fire Lieutenant 7.14 City of Farmington Website Migration to New Provider CivicPlus 7.15 Professional Services Agreement with JLG Architects for Facility Master Planning for the Rambling River Center 7.16 Resolution Accepting Donation 7.17 Final Acceptance of Public Streets and Utilities and Release of Securities —Vita Attiva at South Creek First Addition 7.18 Professional Services Agreement with Barr Engineering for the Industrial Park Drainage Study 7.19 Professional Services Agreement with TKDA for Well 5 Retaining Wall Design Motion was made by Councilmember Porter and seconded by Councilmember Wilson to approve the Consent Agenda, as presented. Motion carried: 5 ayes / 0 nays. Regular City Council Meeting Minutes of September 18,2023 Page 2 of 8 8. PUBLIC HEARINGS 8.1 Ordinance Amending the 2023 Fee Schedule with the State Tax Increase Effective October 1, 2023 City Clerk Buecksler presented. The State of Minnesota has added a one percent (1%) tax increase on all sales and purchases in the seven-county metro area, which includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties, effective October 1 , 2023. Metro Region 0.25% Sales Tax - Housing Revenues from this tax will support housing projects in the seven-county metro area. Metro Region 0.75% Sales Tax - Transportation Revenues from this tax will support transportation projects in the metro area. This one percent (1%) tax increase will affect a variety of fees charged by the City for licenses, permits, and other services. New rates were rounded up to the next whole dollar. Mayor Hoyt opened the public hearing at 7:03 p.m. Hearing from no one wishing to speak, Mayor Hoyt closed the public hearing at 7:30 p.m. Motion was made by Councilmember Wilson and seconded by Councilmember Lien to approve the passage of Ordinance 023-775 Amending Charges and Fees for Licenses, Permits or Other City Approvals and Services for Calendar year 2023 to Include Sales Tax Increase Effective October 1, 2023. Motion carried: 5 ayes / 0 nays. 9. AWARD OF CONTRACT None. 10.PETITIONS, REQUESTS AND COMMUNICATIONS None. 11.UNFINISHED BUSINESS None. 12.NEW BUSINESS 12.1 Preliminary 2024 General Fund Budget and Tax Levy Director Regis presented. State Statute requires that the proposed property tax levy for the upcoming year be certified to Dakota County on or before October 2, 2023. The City Council is being asked to adopt the 2024 proposed property tax levy, which will be included in the proposed property tax statements that are mailed to taxpayers in November. Regular City Council Meeting Minutes of September 18,2023 Page 3 of 8 The City Council discussed the 2024 General Fund budget and tax levy at work sessions in August and September. The proposed budget and tax levy are shown below: 2023 Budget 2024 Proposed Budget Increase Decrease Expenditures $16,884,783 $19,184,407 $13.62% Less: Revenues 3,796,853 4,690,700 23.54% Less: Fiscal Disparities 2,407,636 2,098,009 12.86 % General Fund Levy 10,680,294 12,395,698 16.06% Add: Debt Service Levy 2,069.565 1,763,100 14.81 % Add: EDA Lev - 150,000 100% Net Tax Lev $12,749.859 $14,308,798 12.23% General Fund Revenues Revenues for the General Fund continue to move in a positive direction reflecting a 23.54% increase from 2023. The General Fund has revenues outside of the tax levy. These revenues come from a variety of sources: 2023 Budget 2024 Proposed Budget Increase Decrease Licenses and Permits $ 915,470 $ 779,050 14.90 % Intergovernmental 623,320 769,110 23.39% Charges for Service 605,919 729,930 20.47% Fines and Forfeitures 55,000 55,000 0.00% Investment Income 51,000 10,000 80.39 % Miscellaneous 48,410 63,100 30.34% Transfers In 1,497,734 2,284,510 52.53% Total Revenues $3,796,853 1 $4,690,700 23.54% General Fund Expenditures The proposed 2024 expenditures are summarized below: 2023 Budget 2024 Proposed Budget Increase Decrease Administration $ 1,159,523 $ 1,406,345 21.29% Human Resources 401,235 439,839 9.62% Dakota Broadband 45,500 - 100 % Finance 848,407 968,120 14.11% Police 5,664,569 6,203,145 9.51% Fire 1,742,006 1,795,783 3.09% Community 1,191,555 1,446,254 16.66% Development Engineering 862,897 989,680 21.47% Municipal Services 1,716,574 1,980,327 15.37% Parks & Recreation 1,610,495 1,785,914 10.89% Transfers Out 1,642,022 2,169,000 32.09% Total Expenditures $16,884,783 $19,184,407 13.62% Regular City Council Meeting Minutes of September 18,2023 Page 4 of 8 Human Resource Costs All the budgets include estimated human resource costs based on approved union contracts and estimates for employee benefits and worker's compensation premiums. All union contracts have been settled through 2024. In addition, the City has been notified that we will receive a 9% increase in our health insurance premiums for 2024. Fiscal Disparities This is a metro wide program that is used to balance the development of commercial and industrial growth throughout the region. For 2024, the Fiscal Disparities distribution to the city decreased by $309,627 to $2,098,009. This will have the effect of increasing the net tax levy for 2024. Debt Levy The Debt Service Funds budget provides funding for scheduled debt principal and interest repayment obligations, as well as ongoing trustee, assessments, arbitrage, and post-issuance compliance fees related to the city's debt. The levy includes both General Obligation bonds and Interfund loans. The 2024 debt levy is 14.81% lower than the 2023 debt levy. The decrease in debt is due to the reduction in the debt service levy for the Series 2019A bonds. Additional Notes The City continues to make progress to reach adequate funding levels in several areas, including street maintenance, trail maintenance, building maintenance, EAB management, and fleet replacement. The taxable market value of the average residential property in Farmington will be $354,352 in 2024. This is a 4.43% increase from the 2023 average residential property. The current proposed 2024 tax levy amount would increase the city tax on the average property by$173 per year. Values are one year behind, and these are payable 2024 values. Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to adopt Resolution R62-23 Adopting the Preliminary Budget and Setting the 2024 Preliminary Tax Levy and Debt Service Levy; and to set the public input meeting and adoption of the final 2024 budget and tax levy for Monday, December 4, 2023 at 7 p.m. Motion carried: 5 ayes / 0 nays. 12.2 Professional Services Agreement with Kimley-Horn for the 2024 Street and Utility Improvements, and the 2024 Mill & Overlay Project, Feasibility Study and 30% Design Director Powell presented. Project areas for the 2024 Street and Utility Improvements and 2024 Mill & Overly projects include: Regular City Council Meeting Minutes of September 18.2023 Page 5 of 8 2024 Street and Utility Improvements • 6th Street from CSAH 74 (Ash Street) to 200 feet south of Walnut Street • Maple Street from 4th Street to 6th Street • Maple Street east of 6th Street 2024 Mill & Overlay Protect • Upper 182nd Street from CSAH 31 (Pilot Knob Road) to Dunbury Avenue • Euclid Street/Path from Upper 182nd Street to Englewood Way • Embry Avenue from Echo Lane to Embers Avenue • Embers Avenue from 195th Street to Dunbury Avenue • 208th Street from Edmonton Avenue to east end • Eaton Avenue from 208th Street to 530 feet south • 213th Street from TH 3 to Cambodia Avenue • 9th Street from TH 3 to Spruce Street • Spruce Street from TH 3 to 10th Street The proposed Capital Improvement Program (CIP) includes $3,000,000 per year for street and utility improvements and an additional $1,000,000 per year for mill & overlay projects. The limits of the proposed work areas were identified based on these amounts, which will include engineering and other costs. Based on the proposed work scope, the estimated not-to-exceed amount for this work is $62,125. The City will incur additional costs directly for sanitary and storm sewer televising of all work areas and the geotechnical exploration for the reconstruction project areas. Mayor Hoyt said he couldn't be more proud of the entire team to get to this point. Motion was made by Councilmember Porter and seconded by Councilmember Lien to approve the Professional Services Agreement with Kiley-Horn for the 2024 Street and Utility Improvements, and the 2024 Mill & Overly Project, Feasibility Study and 30% Design. Motion carried: 5 ayes / 0 nays. Regular City Council Meeting Minutes of September 18,2023 Page 6 of 8 i r ' _ t1 PROPOSED 2024 -.q PROJECT AREAS AUGUST.," .C 3 eaYuxcnc-la�n+ui►valndsx tYLu N DRAFT _ 0 9 J27) 111-19 (43) W _ E 70.70 (30) — 30�39 (46) S Farmington Streets — 40-49 (49) Pavement Condition Index (PCI) Map so-so, (;6m) '11 79 (1%1 — w-Fig (3511 FARMINGTON — 9a 100 ({61► — —ww& OMunicipal Hrwndary Regular City Council Meeting Minutes of September 18,2023 Page 7 of 8 12.3 Closed Session —Wells Fargo Bank v. True Gravity Ventures LLC,Astra Genstar Partnership, LLP; Robert M. Wacholz and the City of Farmington, Court File Number 19HA-CV-23-308 (Minn. D. Ct.) Motion was made by Mayor Hoyt and seconded by Councilmember Wilson to close the meeting pursuant to Minnesota Statues, section 13D.05, subdivision 3(b) for a confidential, attorney-client privileged discussion regarding liability and strategy in the matter of Wells Fargo Bank v. True Gravity Ventures, LLC; Astra Genstar Partnership, LLP; Robert M. Wacholz and the City of Farmington, Court File Number 19HA-CV-23-308, in Minnesota District Court, at 7:27 p.m. Motion carried: 5 ayes / 0 nays. Mayor Hoyt reopened the meeting at 7:58 p.m. 13.CITY COUNCIL ROUNDTABLE There was no roundtable discussion. 14.ADJOURNMENT Motion was made by Councilmember Porter and seconded by Councilmember Bernatz to adjourn the meeting at 7.58 p.m. Motion carried: 5 ayes / 0 nays. Respectfully submitted, S irley u cksl�er v City Clerk Regular City Council Meeting Minutes ot'September 18,2023 Page 8 of 8