This transcription has been processed to identify speakers based on the internal dialogue and the provided context. *Note: There is a discrepancy between the provided context list (Mayor Monge) and the actual transcript (Mayor Furlong). I have used the names spoken within the transcript to ensure accuracy to the recording, while identifying staff members like Brian Frandle and Jennifer Kloos from your list.* *** **[00:00] Mayor Furlong:** Let's say the numbers rather than—so we'll call the meeting to order for the workshop for July 5th. Jennifer, take the roll. **[00:05] Jennifer Kloos:** Council Member Thorson? (Here). Council Member Peterson? (Here). Council Member Wong? (Here). Council Member Cole? (Here). Mayor Furlong? (Here). Quorum is present. **[00:10] Mayor Furlong:** Motion to adopt the agenda. **[00:12] Council Member Peterson:** So moved. **[00:14] Council Member Wong:** Second. **[00:15] Mayor Furlong:** All in favor signify by saying aye. (Ayes). Motion carries. So we have looks like one topic and I'll turn it over to Interim City Manager Frandle. **[00:25] Brian Frandle:** Thank you, Mayor. So the topic tonight is the 2023 levy and budget goal setting workshop. This is a kickoff of the 2023 budget process. In this workshop, the City Council will have the opportunity to discuss and set the 2023 levy target and to identify your goals and objectives for the 2023 budget. Items for consideration tonight will include: 2022 budget and city-based property tax levy, driving factors for 2023, preliminary valuation changes, 2023 potential property tax impact, HRA and EDA property tax levy, and the budget calendar. And as always, Director Benick has been very busy putting together a good packet for you all and I'll let him take it over from here. **[00:50] Dan Benick:** Doesn't it seem like we just ended the budget and it starts all over again? It absolutely does. Yeah, I didn't even get to catch my breath from the last one. But I just want to note that there was a little bit of deception that was made today when I had put this item out on the workshop. There was another item, so I thought, "Oh, the other item will probably be about a half an hour or so," and I figured I could fill about 45 minutes to an hour. And then when it got published, it was gone and I'm the only item. So you know what ends up happening with that? You get us for an hour and a half. **[01:15] Mayor Furlong:** Perfect. **[01:16] Dan Benick:** And so I was looking at this and this is actually a workshop, so we're going to do some work tonight. And we need your help actually. After I go through the material that's been presented, then we've got some questions and some post-it notes to get your feedback. Then we will be looking at bringing a preliminary levy budget—which includes the general fund, the EDA, and HRA—hopefully as soon as two weeks from tonight so we can start to have that more of an authentic dialogue on exactly where we're at. *(Dan Benick continues with a long technical presentation regarding fiscal disparities, the 2022 budget starting point, and market value trends through [06:45])* **[06:50] Council Member Wong:** Are you saying we are having a $119,000 loss? **[06:54] Dan Benick:** We are going to lose that for sure right now. But again, last year we were in this position and it appeared that we were going to lose it and then we ended up getting the supplemental. But right now by statute, we're going to lose it. *(Dan Benick continues explaining the Metro I-Net costs and inflationary pressures. He presents the "good news" regarding property valuations through [16:40])* **[16:45] Mayor Furlong:** I think it was a good presentation. I'm looking forward to the anticipation of what's going to happen. Inflation's a big deal. I think market values—I think you're correct—I think we're at the high peak. They can't be sustainable at those levels. I'll open it up to Council. Council Member Thorson? **[16:55] Council Member Thorson:** Just looking at this schedule, I'm not noticing another component to our budget, and that's the enterprise funds. In years past, we've talked about the general fund separately, but they can be a part of each other. We're in a unique position where we have our own electric utilities. I'm just curious what the outlook for that is. **[17:15] Dan Benick:** That is a question that will be asked later on. We certainly can have some preliminary discussions on the enterprise funds. **[18:00] Council Member Thorson:** I've been trying to encourage us to adopt a fund balance policy with those funds. Also, didn't 2021 end up in a positive? Do you happen to know what that number was? **[18:25] Dan Benick:** Yeah, the number for the general fund was $824,000. The bulk of that really came from increased revenue sources, specifically permitting. **[19:40] Council Member Thorson:** Regarding the May 19th hailstorm, are we seeing an increase in building permit revenue? Also, where are we at with the CARES Act or ARPA funds? **[20:20] Dan Benick:** For the ARPA funds, we have just received our second half, approximately $1,360,000, but we had earmarked that for the 2020 street projects. **[21:10] Council Member Thorson:** What is our full LGA (Local Government Aid) allotment? **[21:20] Dan Benick:** In 2022, our full allotment was $1,655,000. **[22:00] Council Member Thorson:** About the Community Development Director position—me personally, I think that's a decision the new City Manager would need to make. I'd be apt to say let's put that on hold until that new person is on board in September or October. **[22:30] Brian Frandle:** We are not proceeding with interviewing for that currently, no. **[22:35] Dan Benick:** However, from a budgetary standpoint, we do need to include it. We don't want to tie the hands of a new manager by not having levied for the position. **[23:25] Council Member Thorson:** One last comment—for the HRA and EDA budgets, I’d like to see the current fund balance and why we are levying before I support it. **[24:00] Mayor Furlong:** I would say for the HRA/EDA budgets, it'd be nice to go back to the committees and get a recommendation from them to see what their plans are. **[24:30] Dan Benick:** That was a part of what I had sent out. We should be talking to every one of our commissions. **[25:00] Mayor Furlong:** One of the positive things here is you have a year's experience now within our budget. Pretty close! **[25:10] Dan Benick:** Middle of the budget, and I still have to be on good behavior for another week before my probationary period is over. I'm still amazed at this City Council and the people that work here. **[26:10] Mayor Furlong:** Any other comments? If not, part two? **[26:30] Dan Benick:** Part two. These were the budget objectives from 2022. My question is: Do you agree with these objectives, and what additional objectives would you like to see? Take a moment to write them down. *(Council works on post-it notes)* **[27:50] Dan Benick:** Is everybody ready? I’m going to randomly pick on—Council Member Cole? **[27:55] Council Member Cole:** Mine were more specific. I'm looking at downtown landscaping, road projects, ensuring we have the right positions like the Community Development Director, and building maintenance for all our facilities. **[29:00] Mayor Furlong:** I agree with the objectives. They are instrumental for core services and giving taxpayers the greatest value for our assets. **[29:30] Council Member Thorson:** I answered your question with a question: "What current city services are not at adequate levels right now?" I want to focus on the CIP and aging infrastructure—water main breaks and sewer backups. Also, try to keep fees and taxes as low as possible due to inflation. **[30:40] Council Member Peterson:** The water tower—we're going to need one at some point. The community center repairs and funding. And not relying too heavily on LGA in the future. **[31:10] Council Member Wong:** I agree regarding infrastructure. Additionally, providing adequate funding for livability through multimodal transportation, parks, and arts. And an inclusive process for staffing. **[32:10] Dan Benick:** Thank you. Next, write down City Goals. **[32:25] Council Member Peterson:** Affordability. Public safety is number one. Good roads. **[32:45] Mayor Furlong:** Staffing levels. We need to optimize the organization. Capital improvement for streets. Redevelopment of the Lily building and the community center. **[33:15] Council Member Thorson:** A renewed focus on basic functions—public safety, public works. Needs versus wants. Downtown landscaping completed by the end of 2023. **[34:10] Council Member Wong:** Invest in infrastructure to mitigate climate change. Invest in the capacity of city staff. Refer to the comp plan's vision of being a "favorite small town." **[35:10] Council Member Cole:** Make North St. Paul a desirable destination for new residents and businesses. Livable, walkable community. **[35:50] Dan Benick:** Now, the target range for the 2023 levy. **[36:00] Council Member Thorson:** Zero to 5.32%. **[36:05] Council Member Wong:** Nine percent. **[36:10] Mayor Furlong:** Four to 7.165%. **[36:15] Council Member Cole:** Not to exceed 6%. **[39:50] Mayor Furlong:** If not—motion to adjourn. (Moved and Seconded). Workshop adjourned. *** **[40:15] Mayor Furlong:** (Regular Meeting Call to Order). Jennifer, take the roll. **[40:20] Jennifer Kloos:** (Takes roll for Thorson, Peterson, Wong, Cole, Furlong). Quorum is present. **[41:30] Brian Frandle:** (Reads Consent Agenda items: June 21st minutes, claims, tobacco licenses, sewer cleaning). **[42:00] Mayor Furlong:** (Consent agenda approved). The meeting is open to the public. John Schmall. **[42:15] John Schmall:** John Schmall, 2750 Chisholm Avenue. Fireworks yesterday were quiet after 10 PM, but noisy during the day. Regarding the workshop, you can't eat market value increase. If income doesn't go up but taxes do, that market value isn't a good thing. Also, does Don know when the postal stamp increase starts? **[43:45] Dan Benick:** It's July 10th. **[43:50] John Schmall:** Thank you. **[44:00] Brian Frandle:** (Department updates: Technology/Zoom access for commissions, National Night Out on August 2nd, student-build house update, 19th officer hired for PD). Phil, so how many new ones do we have in the last few weeks? **[48:30] Phil Baebenroth:** I think five that you've done the paperwork for. **[51:00] Council Member Cole:** Park & Rec meets July 27th. Concert in the park is July 21st. EDA meets July 12th. **[51:50] Council Member Wong:** Arts and Culture meets tomorrow. Planning commission had a special meeting on the Eldridge property. **[52:30] Council Member Peterson:** 19th Avenue house landscaping is done Thursday. I'm going on a ride-along tonight with the PD. **[53:15] Council Member Thorson:** Redevelopment Master Plan group met June 27th. It's headed to the Planning Commission on the 7th for a public hearing. **[54:00] Mayor Furlong:** Veterans Park hosted Wreaths Across America. July 14th is the firemen's picnic at Casey Lake; they want us to cook. National Night Out sign-ups are coming. **[56:30] Mayor Furlong:** We are adjourned and we'll start the HRA in five minutes. *** **[57:10] Mayor Furlong:** Jennifer, take the roll. (Roll call taken). **[57:30] Brian Frandle:** HRA action item: Review of Planning Commission recommendations on the purchase of the 2170 Eldridge Avenue property. **[57:45] Council Member Wong:** As the liaison, I reiterate that the Planning Commission reviewed this for compatibility with the comp plan and land use. They recommend moving forward. **[59:00] Mayor Furlong:** Is there a motion to accept that purchase of 2170 Eldridge? (Moved and Seconded). Motion carries. **[59:30] Brian Frandle:** Update on the site: we found asbestos in four areas. Remediating will cost about $10,600. **[1:00:30] Eric (916 Program):** The lot is 120 feet wide. Two houses should fit comfortably, exactly like the ones on 19th. We plan to build one per year. **[1:01:50] Council Member Peterson:** I want to thank Eric. He’s been wonderful to work with on the 19th Avenue house. **[1:02:15] Council Member Thorson:** There were questions about Tom Spend retiring and the 916 program continuing. **[1:02:30] Eric (916 Program):** Tom is thinking about it, but we plan to keep the program going. We love the real-life experience for these students. We have a waiting list of students for next year. **[1:03:50] Council Member Thorson:** We should define "affordable housing" at the next HRA meeting using AMI (Average Median Income) metrics. **[1:05:00] Mayor Furlong:** Motion to adjourn. (Moved and Seconded). We are adjourned.