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08 26 2026 CC Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Wednesday, August 26, 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 3:31 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, Community Development Manager Sarah Madden, Assistant City Engineer Lucas Ritchie, Police Sergeant Wayne Wegner, Police Chief Kelly McCarthy, and City Clerk Nancy Bauer. FY2027 PROPOSED PRELIMINARY BUDGET REVIEW City Administrator Jacobson noted budget requests that had been discussed in previous meetings and stated that the preliminary budget would need to be approved at the September 15 City Council meeting. The Council reviewed the proposed Engineering Department budget, which reflects an overall increase of 5.74 percent. Ryan Ruzek highlighted increases and noted that not included in the budget was a request for $1,000 to purchase plan review software for Engineering and two licenses for Planning for the cost of $660. The Council discussed the Community Development budget including funding for the Comprehensive Plan update, noting that most of the work on the Plan is expected to occur in 2027. Community Development Manager Madden explained that the budget also includes a request for new interactive software to track development and redevelopment projects in the city. Councilor Lorberbaum asked about the postage line items in the budget for different departments as there are postage increases planned. City Administrator Jacobson responded that some departments are relying on email instead of mailings and have adjusted postage line items accordingly. Public Works Director Ruzek presented the Streets budget noting an increase of 4.17 percent. The Council reviewed three budget requests including facility drain replacement, the skid steer proposal, and wheel loader replacement proposal. Council discussed the solar line items in the budget and the solar for the Fire Department. Public Works Director Ruzek noted that the City pays 75 percent of the solar that is generated on site and receives a 125 percent decrease in electrical bills. Councilor Maczko asked if a report could be provided giving an overview of how solar energy is paid for and managed by the City. The Council also reviewed Public Works budget requests, including replacement of a corroding facility drain at the Public Works facility. Staff noted that the project is a necessary maintenance item and that the cost would be shared among the Streets, Parks, and Utility budgets. Public Works Director Ruzek reviewed the Sanitary Utility Fund budget and noted that the City Council approved a 5 percent utility rate increase in July, with an additional increase anticipated in the future. The budget reflects a 7.42 percent decrease in expenses. Staff also discussed groundwater inflow and infiltration within the sanitary sewer system and the implementation of a biocide treatment in response to sewer odor complaints. The Council reviewed the Streetlight Maintenance budget, which applies to the industrial district. The proposed budget reflects a 17.12 percent decrease, primarily due to the conversion of streetlights to LED technology and the resulting energy savings. Police Chief McCarthy reviewed the proposed Police Department budget which would be reduced by $30,000, due to discontinuation of membership in the Electronic Crimes Unit. Staff determined that the cost of membership had outpaced the Department's need for the services provided. The Council also discussed proposed expenditures related to rentals and leases, prosecution costs, and overtime. Captain Wegener reviewed the budget request to increase the existing part- time Crime Analyst position by a 0.5 FTE and provide backfill for a new 0.5 FTE Records Technician position. The benefits and value of the work performed by the existing part-time crime analyst position were highlighted. City Administrator Jacobson noted that the Emergency Preparedness proposed budget reflected no increases. Finance Director Schabacker noted that the capital outlay line item is intended for the replacement of an emergency siren, if needed. The Council discussed the proposed Parks budget, which reflects a 6.73 percent increase. Staff presented four proposed budget requests, including replacement of the facility drain, the purchase of a John Deere Gator, a skid steer, and a Spray Master turf applicator. The Council discussed the proposed Spray Master, including its intended uses. Staff explained that the equipment would be used for targeted spot treatments, supporting the goal of reducing overall fertilizer and chemical use by applying products only where needed. The Council also discussed whether the equipment could be rented rather than purchased, with staff noting that rental costs would be higher than purchasing the equipment. Additional discussion was had about whether the equipment could be used to apply brine to trails, and staff indicated they would investigate that possibility. August 26, 2026, Ci[y Council Work Session Minutes Page - 2 Public Works Director Ruzek highlighted the forestry mulching head budget request, which staff identified as a high priority for Natural Resources. He noted that the attachment would be used with the City's skid steer to clear brush, dense vegetation and smaller trees. The Council reviewed seven proposed Parks and Recreation budget improvement packages submitted by the Parks and Recreation Commission, which were presented in order of priority. The highest -priority request was the development of a Mendakota Park Master Plan. Staff also reviewed the remaining proposed improvement packages and noted funding sources for each request, including a refresh of the Rogers Lake picnic shelter; replacement of netting at Mendakota Park, which has not been replaced since 1999; portable restroom enclosures to improve their appearance; resurfacing the pickleball courts at Friendly Hills Park, which are located within the hockey rink; improvements to the Kensington Playground, which was installed in 2011; and replacement or improvements to the dugouts at Friendly Hills. The Council discussed potential funding sources for ballfield realignment plan in connection with Mertensotto Field and the Municipal Campus Project. Mayor Levine noted that a portion of the proposed improvements could potentially be financed through the Special Parks Fund. Staff reported that the Recreation budget maintains the same level of services provided in 2026. One proposed budget request is for the replacement of a Recreation vehicle that is shared among staff. The vehicle was previously used by the Police Department, and staff noted that the cost of repairs has exceeded the vehicle's current value. The Council also discussed the proposed replacement of the Recreation vehicle. Councilor Maczko requested that staff compile and provide the City Council with a list of City vehicles, including the annual mileage for each vehicle. The Council reviewed the Par 3 budget, including projected revenues and expenditures. Finance Director Schabacker reported that the Par 3 had a fund balance of approximately $245,000 at the end of 2025 and that current projections indicate revenues are exceeding expenditures. Staff noted that no significant operational increases are proposed. The budget includes funding to keep the Par 3 clubhouse open year-round for recreational use. Staff also reviewed anticipated capital maintenance needs including replacement of the parking lot and bituminous cart paths. The work is proposed to be coordinated with the 2027 street improvement project. The Council discussed a suggestion to sell Par 3 merchandise, such as T-shirts. Staff noted that the clubhouse has limited space for the sale and storage of merchandise. The Council reviewed the Recycling and City Hall budgets. Staff noted that the Recycling program is partially funded through Dakota County grant funding and that no increase in grant funding is anticipated for the coming year. The proposed City Hall budget included several operational and capital items, including replacement chairs for staff and increased electrical service costs. The Council also discussed a proposed budget improvement package for replacement of the City Hall boiler. City Administrator Jacobson reported that an updated budget request spreadsheet reflected a revised total of $1,901,255 in budget requests, compared with the previously reported total of August 269 2026, City Council Work Session Minutes Page - 3 $1,539,590. Depreciation also needed to be added to the overall total. The Council also reviewed the balances of several City funds. The Council discussed the City Fund Balance policy, which currently requires the City to maintain a fund balance equal to 75 percent of annual expenditures. The Council discussed whether the policy should be revised to establish a range rather than a fixed percentage and noted that a range would not affect the City's AAA bond rating. A fund balance range of 60 to 75 percent was suggested, and the Council further discussed potential revisions to the policy. The Council reviewed several budget requests and reached consensus on the inclusion and funding of items in the preliminary budget. The Lake Augusta Outlet Study and Surface Water Management Plan were recommended for inclusion in the preliminary budget, with funding provided by the Storm Water Utility Fund, The Par 3 facility parking lot and associated work were recommended for inclusion in the preliminary budget, with funding provided by the Par 3 Fund. The cellular signal coverage study was recommended for inclusion in the preliminary budget, with funding provided from the Fund Balance, The Council also recommended the inclusion of Microsoft Copilot/AI licensing, with funding provided through the Levy, and the IT Cybersecurity Program, also funded through the Levy. The Council recommended inclusion of the Fire Department administrative structure study and the replacement of the high-pressure rescue lifting air bag system in the preliminary budget, with both items funded from Fund Balance. The Council also approved the proposed increase to the Fire Relief pension for inclusion in the preliminary budget. Audience member Rosemary Husbands inquired if the Valley Park Natural Resources Management an could be paid for out of the Special Parlcs Fund. Public Works Director Ruzek noted that there are limited funds in the Special Parks Funds. The Council recommended including the Valley Park Natural Resources Management Plan in the preliminary budget, and it be paid out of the Fund Balance. Councilor Maczko inquired why the Parks Commission is not managing the Valley Park Management Plan. Public Works Director Ruzek noted that the Natural Resources Commission is given their expertise. Mayor Levine suggested that the Natural Resources Commission provide updates to the Parks and Recreation Commission and vice versa. The Council discussed the Natural Resources Climate Action and Resilience Plan and reached consensus not to fund this item at this time. Instead, $10,000 was added to the Levy for the Comprehensive Plan, The Council also discussed the Mendakota Park Master Plan and reached consensus to include it in the preliminary budget, with funding provided by the Special Parks Fund. August 26, 2026, City Council Work Session Minutes Page - 4 Councilor Paper inquired if the Rogers Lake picnic shelter concrete could be ground down and have an epoxy coating put over it. That was discussed as a possibility. The Mendakota Park netting replacement and portable restroom enclosures were discussed, and the Council reached consensus not to fund either project. The Council recommended funding the Friendly Hills pickleball court resurfacing in the amount of $30,000 from the Fund balance. The Council discussed the Friendly Hills dugout project and reached consensus not to proceed with the project. The Kensington Playground, which was replaced in 2009, was also discussed. The Crime Analyst FTE/ hours increase was discussed. The Council discussed the fireworks budget and recommended including $12,500 in the preliminary budget. The funding is contingent on the Mendota Heights Community Foundation raising the remaining $12,500 needed to fully fund the expense. If the Foundation is unable to raise the additional funds, the city's contribution may be removed from the final budget. Finance Director Schabacker noted that the Levy included the AI licensing and Fire Relief pension contribution. Council discussed reducing some of the line items in the budget to cover budget requests. The line items adjustments were summarized as follows: reduce the summer concert amount to $12,000, reduce the Parks water budget to $20,000, reduce Engineer training by $1,000, and increase Engineering office/computer to $6,000 and reduce the fireworks amount to $12,500. The Council agreed to include the increase in the Police Crime Analyst hours with the costs to be paid from the Levy. The Counoil scheduled the next budget work session for September 9 at 4:00 pm. ADJOURNMENT A motion to adjourn was made by Councilor Mazzitello, seconded by Councilor Paper, and unanimously carried. The meeting ended at approximately 6:38 pm. 04 / ✓. St%phanib B. Levine, Mayor ATTEST: August 26, 2026s City Council Work Session Minutes Page - 5