2026 Proposed Budget Review

The Council reviewed the 2026 proposed budget, including a 5.8% levy increase. Key cost drivers identified were union contracts (3% COLA, firefighter pay, healthcare), law enforcement (3.9% increase), Metro Inet, and audit contracts. Increases were also noted for equipment replacement ($40k), street capital ($50k), and park capital ($10k). A state fire aid contribution ($114k) was noted as budget neutral. Council members expressed concern about the high levy increase and questioned the adequacy of the building maintenance fund (facing a $2.5M deferred maintenance backlog), and the sheriff's budget, including police car purchasing practices. The 35% increase in Planning and Zoning was attributed to fully funding a previously vacant position.

Review of Firearm Ordinances

The Council discussed existing firearm ordinances, specifically the 500-foot prohibited use zone near buildings. The conversation was prompted by recent neighborhood complaints about repeated gunfire and the state's change allowing rifle use south of Highway 95. Council members debated the vague definition of 'nuisance' in relation to continuous gunfire and considered whether to amend the ordinance without restricting constitutional rights. The current penalty for violation is a misdemeanor.

Advisory Member Code of Conduct Discussion

The Council discussed the absence of a Code of Conduct for advisory committee and commission members, triggered by a complaint alleging inappropriate use of position by a commission member. Staff presented examples from Long Lake and North Oaks, covering topics like standards of conduct, conflicts of interest, and representation. Council members emphasized the need for clear guidelines, particularly regarding potential influence on council votes and conflicts of interest, requesting a concise document for future review.

Code Enforcement and Short-Term Rental Ordinance

Moved by Mayor [0:53:35] · Seconded by Council Member [0:53:57]

The Council discussed code enforcement actions against a property at 19520 Tri Oak Circle operating as an illegal short-term rental and commercial venue. Despite multiple cease and desist letters and a partial rental application, the owner remains in violation. The city attorney advised on prosecution steps. The discussion also covered the need to amend the city's ordinance to clearly define short-term rentals and ensure appropriate regulation, noting that the property in question would not be compliant even with a short-term license. Concerns were raised about potential vandalism and the costs of prosecution versus the property being sold.

Consent Agenda Item G: Backup Generators for Wells One and Two

Moved by Council Member Suzanne [1:10:49] · Seconded by Council Member [1:10:55]

Council Member inquired about the funding source for backup generators for wells one and two, expressing concern about general taxpayer burden. Staff clarified that these wells service the northern portion of the city and the project would be financed through grants and the enterprise fund, which is paid for by water users, not general fund taxpayers.

Ordinance 2026-02: Zoning Text Amendment for Business Flex Buildings (Final Approach)

Moved by Council Member Urkel [1:21:04] · Seconded by Council Member Suzanne [1:21:28]

The Council debated a zoning text amendment to add 'business flex buildings' as a conditional use in the B3 highway commercial district, applying city-wide. The proposed amendment allows for multi-tenant buildings for employment-based uses, including light industrial, with architectural standards. A key point of discussion led to an amendment prohibiting cannabis-related businesses within these new flex buildings, which staff confirmed could be incorporated into the ordinance language.

Resolution 2026-37: Preliminary/Final Plat, CUP, and Site Plan for Final Approach East Bethl Edition

Moved by Council Member Urkel [1:30:10] · Seconded by Council Member [1:30:30]

The Council approved the preliminary and final plat, a conditional use permit, and site plan review for the Final Approach East Bethl Edition development. This plan includes a 21,600 sq ft multi-tenant business flex building located east of Ulysi Street, west of Highway 65. The developer is responsible for extending Ulysi Street and necessary utilities. A traffic analysis indicated no significant impact on the level of service, though a caveat was added to address future congestion if conditions change. The property will remain B3 zoned with mixed-use comprehensive plan guidance.

Resolution 2026-38: Conditional Use Permit for Renovation Church

Moved by Council Member Urkel [1:36:58] · Seconded by Council Member [1:37:25]

The Council approved a Conditional Use Permit allowing Renovation Church to occupy 15,000 sq ft of the new Final Approach flex building with a capacity for 400 seats. Key issues addressed included parking (195 available stalls exceeding 134 required), traffic circulation, and emergency access. Conditions include constructing the entire flex building, final floor plan approval, and potential requirement for licensed law enforcement traffic control during peak times like Sunday services at the applicant's expense. The church is expected to have minimal weekday operations.

Ordinance 2026-03: Administrative Subdivision Regulations Amendment

Moved by Council Member Suzanne [1:42:37] · Seconded by Council Member [1:43:24]

The Council approved amendments to the administrative subdivision regulations. The key change establishes a 10-year look-back period for simple lot splits, meaning a property owner can use this expedited process only once within a decade. The amendment also clarifies that while staff provides recommendations, the City Council retains final approval authority. The goal is to provide a simpler, less expensive option for single lot splits for individual homeowners, without altering lot size, land use, frontage, or wetland requirements, while still distinguishing it from multi-lot developer plats.

Declaration of City Council Vacancy and Appointment

Dissent: Mayor [1:49:33] voted against Stacy Miller's appointment. One council member voted against Dino Perfetti's appointment.

Moved by Council Member Suzanne [1:47:18] (for vacancy declaration); Council Member Suzanne [1:49:03] (for Stacy Miller's appointment); Mayor [1:50:52] (for Dino Perfetti's appointment) · Seconded by Council Member [1:47:24] (for vacancy declaration); Council Member [1:49:17] (for Stacy Miller's appointment); Council Member [1:51:02] (for Dino Perfetti's appointment)

The Council addressed the vacancy of a city council seat following Councilman Tim Miller's passing. The City Administrator outlined the process, requiring a resolution to declare the vacancy and a subsequent discussion on appointment options. Eligibility for appointment includes being a U.S. citizen, city resident, and at least 21 years old. The appointment is temporary until a permanent election. Council members expressed deep condolences and support for Stacy Miller, Tim Miller's wife, to fill the seat due to her familiarity with city issues and dedication. A motion to appoint Stacy Miller failed 2-3 (including Mayor's tie-breaking vote). Subsequently, the Mayor made a motion to appoint Dino Perfetti, which passed 3-1.