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HomeMy WebLinkAbout08.03.26 Work Session MinutesWork Session Minutes of August 3, 2026 Page 1 of 5 City of Farmington City Council Work Session Minutes Monday, August 3, 2026 The City Council met in a work session on Monday, August 3, 2026, at Farmington City Hall, 430 Third Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Lien called the meeting to order at 5:00 pm. Members Present: Mayor Nick Lien Councilmembers Holly Bernatz and Phil Windschitl Members Late: Councilmember Steve Wilson arrived at 5:06 pm Members Absent: Councilmember Cordes Staff Present: Lynn Gorski, City Administrator David Chanski, Assistant City Administrator Kim Sommerland, Finance Director Matt Price, Fire Chief Kellee Omlid, Parks & Recreation Director Nate Siem, Police Chief John Powell, Public Works Director/City Engineer Melissa Geis, City Clerk 2. APPROVE AGENDA Motion was made by Councilmember Bernatz and seconded by Councilmember Windschitl to approve the agenda, as presented. Motion carried: 4 ayes / 0 nays 3. DISCUSSION ITEMS 3.1 2027 Preliminary Budget Development City Administrator Gorski explained that Staff have been working on the 2027 Budget and that there are many assumptions at this time as they are waiting for more data for various items. She shared that the preliminary budget as presented includes all requests. The goal is to start conversation with the very preliminary numbers. Work Session Minutes of August 3, 2026 Page 2 of 5 Director Sommerland presented a high-level overview, not a line-item detailed review of the 2027 Budget. Strategic Pillars  Quality Business Growth and Retention  Community Engagement  Infrastructure Support  Employee Engagement/Culture/Wellness City Council Priorities from strategic planning sessions: 1. Police Building Expansion 2. Combination Full-Time/Paid-on-Call Fire Department 3. Street Reconstruction & Maintenance, Water Sewer Expansion 4. Building Maintenance & Upgrades 5. Trail Construction & Maintenance 6. Maintenance Facility Expansion 7. Ice Arena Budget timeline: May  Budget entry period June  Estimated revenue amounts and request expense budgets completed by departments  Data reviewed and analyzed by Finance, updates made.  Department budget meetings with Finance Director, Assistant City Administrator, and City Administrator July  Budget revisions completed based on department discussions and new information  Leadership team meets to discuss potential adjustments to the draft budget. August  Council work session to discuss budget. – Currently Here  Budget revisions completed based on Council work session and new information. September  Council work session to discuss the budget  Budget revisions completed based on Council work session and new information  City Council adopts preliminary levy and sets public meeting details  Preliminary levy and budget certified to County Auditor Work Session Minutes of August 3, 2026 Page 3 of 5 November  County Auditor prepares and mails proposed tax statements to property owners December  Truth in Taxation public hearing  City Council adopts final 2027 budget, levy and 2027-2031 CIP  Final levy and budget certified to the County Auditor  Tax levy reports filed with the Minnesota Department of Revenue Budget Development- Where a Farmington Property Tax Dollar Goes  $0.47 supports City services, safety. Parks. Streets, community programs  $0.32 supports local schools and student education  $0.19 supports County Services, public health, human services and infrastructure  $0.02 supports special districts, watershed, mosquito control, and Metro Council External Factors & Unknowns:  Fiscal Disparities  Compensation and classification study results  Health insurance premium renewals  Worker’s compensation and liability insurance rates  Financing approach (shift from leasing to purchase vehicles)  Bond issuance timing & debt service structure for major projects  Grant awards and funding changes Key Drivers in 2027 Budget:  Rising operational costs to maintain current service levels  Capital reinvestment needs across multiple funds  Major projects in motion that require levy support (street projects, fire engine, Police Department Expansion  Departmental requests exceed revenue growth from sources other than levy (non-levy revenue not keeping up)  Fund balance strength varies by fund, limiting flexibility in several capital areas  Timing of future debt issuance influencing when levy impacts occur Work Session Minutes of August 3, 2026 Page 4 of 5  Showing an increase in levy and taxable value with all requests as a starting point, not necessarily a recommendation  This does not include any debt of potential Police Expansion or Fire Engine  In drafting of budget, they used fund balance from the debt service funds to bring down the scheduled debt levy City Administrator Gorski stated the on September 8th they will present additional numbers and a detailed draft to Council for those unknown items. Discussion focused on:  Benefits of purchasing vs. leasing vehicles  Largest capital expense is personnel, how to retain and use additional tools for maximum efficiency in other areas  Ice Arena strategies including; building maintenance, trying to find other revenue sources  Grants have contributed greatly to variety of projects Following discussion, the City Council provided the following direction for Staff:  To not reduce or sacrifice core items  Avoid deferring maintenance or neglecting parks and trails and road projects for other projects  Utilize data to determine what is done, not emotion  Communication of needs and priorities to residents 4. COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATES