05 19 2026 CC Work Session MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Tuesday, May 19, 2026
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
Maczko, and Paper were in attendance.
Others present included: City Administrator Cheryl Jacobson, Assistant City Administrator Kelly
Torkelson, Finance Director Kristen Schabacker, Public Works Director Ryan Ruzek, Parks &
Recreation Director/Assistant Public Works Director Meredith Lawrence, Police Chief Kelly
McCarthy, and City Clerk Nancy Bauer.
FY2027 BUDGET INFORMATION AND PREVIEW
City Administrator Jacobson provided an overview of the annual budget preparation timeline,
noting that the Council will hold its budget work session in August, with preliminary adoption due
by the end of September and final approval in December.
She stated that the City uses abase -budgeting approach aligned with Council strategic priorities.
The budget begins with the prior year as the base, with adjustments for inflation, staffing,
contracts, new programming, and capital needs. Departments assume continuation of existing
services unless changes are proposed and rely on historical budget and expense data.
City Administrator Jacobson added that new requests are submitted through the budget request
process, and the City also utilizes a Capital Improvement Plan (CIP). Finance Director Schabacker
noted that larger items are included in the CIP and are over $25,000.
Councilor Mazzitello commented that CIP items are depreciated.
Councilor Paper inquired when the amount was last raised. Finance Director Schabacker stated
that the threshold was last raised a couple of years ago.
Councilor Maczko asked whether the CIP includes street improvement or sanitary sewer projects.
Finance Director Schabacker responded that components of these projects are included in the CIP
and noted that the City also follows a Capital Asset Policy.
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Finance Director Schabacker reviewed fund types including the General Fund, Utility Fund,
Enterprise Fund, Special Revenue Funds, Special Parks Fund, Debt Service, Reserve Funds and
Capital Project Fund .
Councilor Lorberbaum asked about the Facility Reserve Fund and its allowable uses. Finance
Director Schabacker explained that the fund supports capital improvements and repairs to city
facilities. In response to questions regarding revenue sources, she noted that the fund currently has
no dedicated funding source. She added that future funding options, such as levy revenues or
Utility Franchise Fees, will need further discussion.
Finance Director Schabacker stated the main revenue source for the City is property taxes.
City Administrator Jacobson noted that some residents had expected a tax decrease once the Par 3
debt service was paid off. She explained that the Council redirected those funds to support
increased Natural Resources programming, which offset the reduction in the Par 3 levy and
resulted in no decrease in property taxes.
Staff and Council reviewed how the city determines the total property tax levy necessary to fund
existing costs and new budget requests.
Councilor Maczko asked if the city would receive additional revenue if home values increased
while the levy remained the same as the previous year. Finance Director Schabacker stated if
property values increase while the levy stays the same as the previous year, individual property
taxes would generally decrease.
Finance Director Schabacker continued by stating that other revenue sources, including police and
fire services, grants, and permits, are considered before setting the levy. The levy is then used to
calculate the tax rate. Dakota County provides key figures near budget time, including tax
capacity, TIF district valuations (which includes two), and fiscal disparities, all which factor into
determining the city's final tax capacity.
A Levy and Tax Capacity Rate chart for the City of Mendota Heights from 2020 to 2026 was
reviewedI Comparisons of other Dakota County cities were discussed. A 2026 Levy Comparison
for Dakota County Cities was reviewed.
City Administrator Jacobson noted budget driver predictors include the economy (tariffs, general
cost of goods and services, and demand), new requirements or mandates, City Council Priorities
and Goals, the CIP for maintenance and replacement, and the municipal campus project.
Assistant City Administrator Torkelson explained that a new federal mandate requires all public
materials produced by the City to be ADA accessible. In response to a question from Councilor
Paper, she noted that the requirement applies to future documents, and any linked documents on
the City's website will also need to be made ADA accessible. She stated that this is an unfunded
mandate and must be implemented by April 2028.
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The Council discussed the
potential
use or
sale of the city owned property located at Bourne Lane.
It was the consensus of the
group to
gather
more information regarding the property.
The Council discussed the potential approval of charitable gambling, specifically pull tabs, within
the city. No direction from the council was provided on this topic. Other potential revenue sources
were discussed including a local option sales tax, lodging tax, and the ability to adjust Utility
Franchise Fees in the future.
Mayor Levine inquired about the balance of the fund balance. Finance Director Schabacker noted
that the fund balance would remain flat due to purchases that had been paid for.
Mayor Levine inquired about holding off on raising taxes for the municipal campus project for
three years and using the fund balance to cover the costs during that time. This would need to be
discussed regarding the financing of the bonds.
Councilor Maczko noted that Wayzata is building their own cell tower to help generate revenue.
Public Works Director Ruzek noted that Inver Grove Heights and Eagan have their own cell
towers and receive $60,000 per year per provider.
Councilor Lorberbaum suggested naming rights of a ballfield to raise revenue. Parks &Recreation
Director/Assistant Public Works Director Lawrence noted this topic was discussed at a City
Council meeting about three years ago, and there was no support for banners or signs associated
with naming rights. The matter could be brought back to the City Council for further
consideration.
ADJOURNMENT
Motion to adjourn the meeting was made by Councilor Mazzitello, was seconded by Councilor
Paper, and the meeting adjourned the meeting at 5:55 p.m.
Ste ani B. Levine, Mayor
ATTEST:
Nat cy Act, City
May 19, 2026, City Council Work Session Minutes Page - 3