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08 13 2025 City Council Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Tuesday, August 13, 2025 Pursuant to due call and notice thereof, a work session of the Mendota Heights City Council was held at Mendota Heights City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Levine called the work session to order at 4:30 p.m. Councilors Lorberbaum, Mazzitello and Paper were in attendance. Councilor Maczko was absent. Others present included: City Administrator Cheryl Jacobson, Assistant City Administrator Kelly Torkelson, Finance Director Kristen Schabacker, Public Works Director Ryan Ruzek, Assistant City Engineer Lucas Ritchie, Community Development Manager Sarah Madden, Park and Recreation Director/Assistant Public Works Director Meredith Lawrence, and City Clerk Nancy Bauer, FY 2026 PROPOSED BUDGET REVIEW City Administrator Jacobson began with a review of the Administration budget, noting a 6.61 increase in the budget from 2025. The increase reflects investments in staff and core operations. Councilor Lorberbaum asked about city hall rent. Finance Director Schabacker responded that it was for the various departments to pay into the city hall fund to help cover the costs of utilities, maintenance, etc., for city hall. Mayor Levine asked about the auditor costs and whether it was time to go out for an RFP. Finance Director Schabacker responded that the increase for auditing services included the cost for the actuarial company for one of the footnotes of the audit. She added that it would be up to the council if an RFP was requested. Mayor Levine asked about the salary reclassifications for administration. City Administrator Jacobson responded that there were two positions in administration that were proposed to be reclassified. City Administrator Jacobson noted the IT budget is down from 2025. Assistant City Administrator Torkelson added that some projects were deferred for 2026, and hardware upgrades occur on a cyclical schedule. Augtst 13, 2025, Mendota Heights City Council Wa•k Session A9inutes Page - 1 Councilor Lorberbaum asked when new computers were purchased. Assistant City Administrator Torkelson responded that computers are on a five-year replacement schedule. City Administrator Jacobson stated that the proposed City Hall budget is down nearly 19%, with no major changes to the budget for 2026. City Administrator Jacobson reported a 15.3 1% proposed increase in the Community Development budget, including funds for the 2025 Comprehensive Plan update and increased code enforcement prosecutions. Community Development Manager Madden noted the Comp Plan update will take at least three years. Councilor Paper asked about a consultant, and Community Development Manager Madden said that it will be decided in 2026. Councilor Paper asked about the cost of the large packets produced that had gone out recently and if the costs were recovered with application fees or through the required escrow. Community Development Manager Madden stated that the fees will be revisited when reviewing the fee schedule. City Administrator Jacobson stated that Council could move towards electronic packets as part of an efficiency and sustainability effort. Councilor Mazzitello offered to switch to electronic packets when staff were ready to move forward. City Administrator Jacobson stated that the proposed building official budget had a minimal increase and covered contracted inspection services through Inspectron. Councilor Mazzitello asked how the contracted inspection services were going. Community Development Manager Madden responded that she has had very few complaints. City Administrator Jacobson stated that Engineering is proposing a 5.41 % increase and highlighted the request for asset management software. Assistant City Engineer Ritchie provided background on the proposed asset management software, noting that the system would be utilized by multiple departments. Public Works Director Ruzek reported on the budget request to replace a 2013 F-150 within the Engineering Department. City Administrator Jacobson stated that the Streets Department has a small increase of 2.3% and noted that the salt budget has decreased. City Administrator Jacobson stated that there are a number of capital requests coming from the Streets, Parks and Utility departments. Public Works Director Ruzek reviewed public works budget requests, including the replacement of the city's oversized wheel loader, a new truck - mounted message board, replacement of the existing aprons and bollards at the public works building, and installation of a building access control system at the public works building. Public Works Director Ruzek reviewed the utility fund, noting that the software support line item is for the SCDA system that had been added to all the lift stations. August 13, 2025, Mendota Heights City Council N'ork Session Minutes Page - 2 Councilor Mazzitello asked for the balance of the utility fund. Finance Director Schabacker responded that there was $2.2 million as of December 31, 2024. City Administrator Jacobson reported a proposed 3.29% increase to the stormwater utility fund, aiming to improve one pond per year. Public Works Director Ruzek added that a consultant inspected 60 ponds this year, a task done every five years. Public Works Director Ruzek reviewed the streetlight maintenance budget, noting it covers the industrial park and is charged back to the districts. The budget is down 21.51 % due to pole replacements and LED conversions. Finance Director Schabacker reported the fund balance is just under $75,000. City Administrator Jacobson stated that the parks budget was proposed to increase 1.52%. Capital requests were reviewed. City Administrator Jacobson reviewed Special Parks Fund budget requests. Parks and Recreation Director/Assistant Public Works Director Lawrence reported that the Parks Commission reviewed capital projects. Their top priorities were adding water to the dog park and or lot. After discussion, it was the consensus not to add water to either. Parks and Recreation Director/Assistant Public Works Director Lawrence reviewed the remaining budget requests, including the replacement of hockey boards at Wentworth Park, expansion of the Wentworth basketball court, Valley Park playground replacement and a refresh of the Valley Park picnic shelter. Staff and council discussed the possibility of applying for a MN DNR matching grant to offset some of the costs of these projects. Mayor Levine asked if Dakota County could help fund Valley Park improvements. Parks and Recreation Director/Assistant Public Works Director Lawrence said funding would require designating the park as a trailhead, which involves meeting certain conditions. Parks and Recreation Director/Assistant Public Works Director Lawrence discussed the Commission's recommendation to add a bocce ball court to the city's park system. Councilor Mazzitello asked if it would be one or two courts. Parks and Recreation Director/Assistant Public Works Director Lawrence stated that one or two courts were being considered and noted that funds could be used from the Special Parks Fund to fund the bocce ball court(s). Assistant City Administrator Torkelson stated that Park AEDs are a budget request coming from the Employee Safety Committee. Parks and Recreation Director/Assistant Public Works Director Lawrence described how the park AEDs would work. City Administrator Jacobson stated the AEDs are recommended for Wentworth Park, Friendly Hills Park, Kensington Park, and Mendakota Park. She stated she had discussed with the Augzrst 13, 2025, Mendota Heights City Comzcil Work Session MinuXes Page - 3 Mendota Heights Community Foundation if they would consider funding the park AEDs. Councilor Lorberbaum reported they would be interested but did not have the funds currently. City Administrator Jacobson stated that there is a budget request for the Oheyawahe Interpretive Plan — Phase IV. It is a $10,000 request as part of the larger Oheyawahe project. City Administrator Jacobson stated that a John Deere Gator was requested by the Parks Department, and it would be a new piece of equipment. Public Works Director Ruzek stated that it is a versatile piece of equipment. It is proposed to have a plow attached to assist in plowing now. It could also be outfitted with a tracked machine in the winter to groom the trails for cross country skiing at the Par 3. City Administrator Jacobson stated that the Recreation budget is proposed to increase just under ]0%. The increase reflects the expansion of existing offerings. Parks and Recreation Director/Assistant Public Works Director Lawrence stated that nature -based programming is being added to the recreation budget. Parks and Recreation Director/Assistant Public Works Director Lawrence stated that there is about a $50,000 operating surplus at the Par 3. She highlighted that rounds played this year are up, as well as camp attendance and concessions. She relayed that the tee time software is working great. City Administrator Jacobson stated that there is a proposed 6.53%increase to the budget for the at 3. Mayor Levine asked for the fund balance of the Par 3. Finance Director Schabacker responded that at the end of last year it was $158,000. Parks and Recreation Director/Assistant Public Works Director Lawrence discussed a request to purchase a standby generator for the golf course maintenance garage. Mayor Levine asked about the irrigation system. Parks and Recreation Director/Assistant Public Works Director Lawrence stated that it is working well. In a couple of years, the underground piping will need to be replaced at an estimated cost of $700,000. City Administrator Jacobson reviewed the Recycling budget and its proposed changes. Parks and Recreation Director/Assistant Public Works Director Lawrence stated that the city is working through a Joint Powers Agreement with the cities of West St. Paul, South Saint Paul, Mendota Heights, Lilydale, and Sunfish Lake for recycling services. Staff propose increasing the hours to 20 hours a week for the Recycling Coordinator. The impact on the budget is about $5,000. It was the consensus to move forward with the request. City Administrator Jacobson reported that Natural Resources has its own budget this year, with a proposed 6.78% increase. Key projects include a climate action and resilience plan and landscape ordinance. August 73, 2025, Alendota Heights City Council Work Session Minutes Page - 4 Councilor Mazzitello asked how the franchise fees collected for natural resources are incorporated into the budget. Finance Director responded that they are incorporated into the general fund. Mayor Levine asked about the cell tower revenue. Finance Director replied that St. Paul Water Regional Water Services and the city split the funds received from the cell tower revenues. Councilor Paper left the work session meeting. Councilor Mazzitello asked about the Community Development budget request stating there is a request for the 2025 Comprehensive Plan and asked if that was included in the budget figures. Finance Director Schabacker replied that included in the budget numbers were the Minnesota Paid Family Leave expense, the 2025 Comprehensive Plan expense, and the Recycling Coordinator position expense. Mayor Levine asked about the timeline for approving the budget. City Administrator Jacobson explained there is one more work session scheduled for further budget discussion with the preliminary budget to be approved at the September 16, 2025, City Council meeting. It was the consensus to hold one more work session on September 3 at 4:00 pm. City Administrator Jacobson reviewed the entire list of budget requests and confirmed the council's direction for inclusion in the 2026 preliminary budget. After discussion regarding the 2026 levy, Finance Director Schabacker stated the preliminary levy showed a 3.44% increase. Councilor Mazzitello stated this number showed fiscal responsibility. Finance Director Schabacker stated the proposed levy tax rate would be 38.362. The median home of $551,000 in 2026 will see approximately $78.62 in an annual increase with the proposed budget. ADJOURNMENT Councilor Mazzitello made a motion to adjourn the work session, and the motion was seconded by Councilor Lorberbaum. Motion can ied 3-0. The meeting adjourned at 8:04 p.m. ATTEST: Q Na cy Ba r, City Clerk August 13, 202$ Mendota Heights City Council Work Session Minutes Page - S