Lakeville City Council — Transcript

Monday, December 1, 2025

Southwest Study Area / Alternative Urban Area Review (AUR)

Lakeville Fire Department Rookie Class Recognition

Parks and Recreation Quarterly Report

Abatement of Reassessment for Hazardous Building Removal

Kyla Crossing Second Edition Preliminary Plat & Zoning Amendments

214th Street Reconstruction Project (City Project 26-01)

Adoption of City Fee Schedule

Truth in Taxation: 2026 Property Tax Levy and Budget

Votes (8)

Citizens Comments Opportunity (Southwest Study Area / AUR)

No direct vote on the citizen comments, information received.

Two citizens, Beth Loden and Bob Ericson, addressed the council regarding the Alternative Urban Area Review (AUR) for the Southwest Study Area. They criticized the 'Final Order' report for failing to incorporate previous citizen input, misstating acreage, neglecting engagement with U.S. Fish and Wildlife Services, omitting traffic impact studies for County Road 70, and providing an incomplete wetland analysis (Credit River vs. Vermilion Waterway). Environmental concerns focused on Blanding turtles and rusty patched bumblebees. The financial strain on the school district due to rapid housing development was also highlighted. Both requested their comments be part of the official record.

Swearing In and Badging of Firefighters (Class of 2023)

Recognition ceremony, no formal vote.

Fire Chief Mike Meyer recognized Cory Blanchard, Malik Cam, and Brian Monahan for completing their two-year probationary period with the Lakeville Fire Department. They successfully earned Fire 2, Hazmat Op, Emergency Medical, and Emergency Vehicle Operation certifications. Council members praised their dedication, hard work, and the sacrifices made by their families.

Park and Recreational Quarterly Report (September-November)

Report received, no formal vote.

Director Joe Macy Archin presented updates on various park projects, including Grand Prairie Park construction nearing completion, East Community Park Phase 2 planning (community gardens, dog park), Lake Marian Greenway planning, and Spyglass Park Phase 2 completion. Maintenance efforts, successful special events (Who Done It Hike, Haunted Forest Festival), increased recreation programming (40% increase), and significant growth in facility rental revenue (12-45% increases) were reported. Updates on the Heritage Center (upgrades, membership) and Art Center (program revenue, event participation) showcased strong community engagement.

Resolution abating the reassessment for removal of a hazardous building (Item H)

4-1 Approved

Dissent: Council Member Walter voted 'no'.

Moved by Council Member Kelly [0:24:00] · Seconded by Council Member Walter [0:24:08]

Council Member Walter pulled item H for further discussion, advocating against forgiving the $50,000 assessment due to fiduciary responsibility to taxpayers. Council Member Kelly acknowledged a prior failure to reach a consensus on an amount. Council Member Lee argued against reassessing at this point, citing that the situation highlighted process issues that have since been resolved for future transparency with the county. She felt it was unfair to retroactively assess the individual. The property owner requested a copy of the action to provide to potential buyers, indicating active sales discussions.

Kyla Crossing, Second Edition Preliminary Plat, Comprehensive Plan and Zoning Map Amendments

5-0 Approved

Moved by Council Member Vult [0:30:22] · Seconded by Council Member Kelly [0:30:57]

Rick Osberg of Hill Engineering and Ms. Goodro from city staff presented applications for Kyla Crossing Second Edition, proposing 18 single-family lots west of Ipava and north of Kenwood Trail. The project required re-guiding the land use to low-density residential and changing zoning from RM2 to RST2. A 90% complete buffer of landscaping and trees would be along the south boundary. Concerns were raised about the need for a stop sign on Iris Way where it meets Ipava and future pedestrian traffic. The Planning Commission unanimously recommended approval.

Public Hearing on Ordering Improvements and Preparation of Plans for the 2026 214th Street Reconstruction Project (City Project 26-01)

5-0 Approved

Moved by Council Member Burmal [0:37:17] · Seconded by Council Member Kelly [0:37:46]

Director Omi presented the project for 214th Street West (east of Hamburg Avenue, north of County Road 70), which is in poor condition (OCI 25). The reconstruction includes reclaiming pavement, adding a foot of sand for strength, replacing/adding curb and gutter, crowning the road for drainage, replacing water main bolts and adding corrosion protection, and enhancing the storm sewer system. The estimated cost is $577,000, funded by pavement management, assessments ($158,000 via per-unit basis), water operations, and storm sewer funds. A neighborhood meeting generated favorable comments, noting storm drainage and driveway adjustment requests. The schedule anticipates construction starting in April 2026. The public hearing was held, with no public comments.

Public Hearing on the Adoption of a City Fee Schedule by Ordinance

5-0 Approved

Moved by Council Member Walter [0:39:46] · Seconded by Council Member Kelly [0:40:02]

The Finance Director presented proposed changes to the city's fee schedule, which is reviewed annually to reflect service costs. The ordinance covered permits, planning, engineering, connection charges, and other development fees. Two minor changes were made since the October 27th work session: updating park shelter rental fees (based on comparison to neighboring cities) and reducing the utility bill late payment charge to comply with state statute limits. State law requires establishment or modification of land use application fees by ordinance after a public hearing. No public comments were received during the hearing.

Public Hearing on Truth in Taxation for the 2026 Property Tax Levy and Budget

5-0 Approved

Moved by Council Member Vulk [0:50:39] · Seconded by Council Member Kelly [0:50:49]

The Finance Director presented the final proposed 2026 budget and property tax levy. The total levy of $51,986,475 represents a 6.4% increase from 2025, a reduction from the preliminary 7% increase adopted in September. Factors influencing taxes include a 5.4% increase in taxable market value (2% new construction), leading to a $75 annual increase for a median value home. Lakeville maintains the lowest tax rate in major Dakota County cities. The budget includes three new full-time positions, a 3% COLA, and addresses the new Paid Family Leave Act. Liquor fund transfers ($2.3 million) significantly offset other city funds. Council members praised staff for fiscal management, achieving a modest increase, and maintaining the lowest tax rate in the county. No public comments were received.

Notable Quotes (18)

The second question is is that the city it city indicated that their proposed action document that they reached out to the state department but they do not reach out to the United States Fish and Wildlife Services. So we'd like that to be considered and reach out because Soulberg um is under that control and they border that property.

Beth Loden [0:02:18]
Citizens Comments Opportunity (Southwest Study Area / AUR)

First of which is the natural resource areas and that document does not identify soberg waterfall waterfall production area and I that was that's a huge gap in the document and it is not the sober wall waterfall production area is not identified 114 acres with any map in this document. So it's not identified and I think that's a significant natural resource that the community has enjoyed uh since 1994.

Bob Ericson [0:04:36]
Citizens Comments Opportunity (Southwest Study Area / AUR)

And then the school district, again, right now the school district's trying to um put together a 10-year facilities plan, looking at asking the taxpayers to support a $250 million bond referendum in order to be able to keep up with what the city's been doing and approving homes. Um this is a tall order and I'm not sure. And then after that, we'd have to follow an operating levy to operate those buildings for those additions.

Beth Loden [0:03:07]
Citizens Comments Opportunity (Southwest Study Area / AUR)

each firefighter earned their fire 2 certification, hazmat op certification, emergency medical certification, an emergency vehicle operation certification totaling about 450 hours of training over these past two years.

Mike Meyer (Fire Chief) [0:09:12]
Swearing In and Badging of Firefighters (Class of 2023)

Congratulations. um listening to your training. You folks have worked really really hard to get to the place you're at and uh the work is just beginning. Um so you'll have plenty of training and plenty of practical opportunities. But I just personally appreciate your commitment to our community. This is going above and beyond and you are going to be sacrificing a lot uh to be part of the fire service and uh it's cool to see your families here and uh that support is so important.

Council Member Walter [0:10:43]
Swearing In and Badging of Firefighters (Class of 2023)

East Community Park will include a large shelter and restroom building. It'll include Lakeville's first community garden plots. We're building a trail head in conjunction with Dakota County as well as a new dog park and new trails. Uh that project will be going out to bid here in uh in winter and we would anticipate construction starting in 2026.

Joe Macy Archin (Parks and Rec Director) [0:14:24]
Park and Recreational Quarterly Report (September-November)

Fall programming recap for recreation. Uh we increased our programming this fall by 40%. Some of those new programs included cookie decorating, nature homeschool, uh the fall music together, and expanded Rev Sports offerings sitting at just under 300 participants in the last quarter.

Joe Macy Archin (Parks and Rec Director) [0:16:51]
Park and Recreational Quarterly Report (September-November)

It's basically forgiving the entire amount. Um and I I would like to encourage some some discussion on that and reconsideration if that's at all possible, but if not, I just would like to vote against it. In my view, this is we have a fiduciary responsibility. This is $50,000 of taxpayer money. Um, and at a night when we're approving a levy uh increase. Um, and I I I I just I I don't feel like it's I I understand the circumstances and the the the purchaser had some issues, but in my view, that's something that needs to be adjudicated. Um, and is not for us to put up uh taxpayer dollars to to to resolve the situation. So, that's my rationale here.

Council Member Walter [0:20:41]
Resolution abating the reassessment for removal of a hazardous building (Item H)

in since that meeting, we have come up with a more transparent way to show what assessments are on the bill. Since then, we've been in conversation with the county and there are going to be some procedural changes that make it much more clear going forward what assessments may have been cleared prior to forfeite to the state. So I think what this situation highlighted was some issues with the process which have been resolved and while that is not necessarily fair to the city I think it is unfair for the individual to go back to and try to assess those those funds at this point.

Council Member Lee [0:21:58]
Resolution abating the reassessment for removal of a hazardous building (Item H)

So right now the property on the right side of your screen displays the land use. It's currently guided medium and high density and the applicant has requested that the property be reguided to lowdensity residential to support the single family proposal. With that, then we have a comp um zoning text amendment to change it from RM2, which is shown at the top of the screen, to the proposed RST2 to support the single family.

Ms. Goodro (City Staff) [0:27:07]
Kyla Crossing, Second Edition Preliminary Plat, Comprehensive Plan and Zoning Map Amendments

Just one thing as I looked and it's that it's that intersection, it's that crossing. Um, as this becomes populated and you have kids, I could see I could see that uh becoming just a place where they want to cross. Um, and it's more of a comment about just keeping an eye on the pedestrian traffic there and then applying our pedestrian policy uh if we reach thresholds.

Council Member Walter [0:29:43]
Kyla Crossing, Second Edition Preliminary Plat, Comprehensive Plan and Zoning Map Amendments

Unfortunately the pavement section is a very is very thin u based upon the geotechnical report that we have completed. So, we'd like to add about a foot of uh sand section to this to this roadway um to beef it up to more commercial standard collector road standard.

Director Omi (City Staff) [0:32:41]
Public Hearing on Ordering Improvements and Preparation of Plans for the 2026 214th Street Reconstruction Project (City Project 26-01)

So staff is recommending uh that we use a per unit basis method. So every all um uh units would be assessed the same amount. This is consistent what we what we do with or have done with our street reconstruction um projects as well.

Director Omi (City Staff) [0:34:04]
Public Hearing on Ordering Improvements and Preparation of Plans for the 2026 214th Street Reconstruction Project (City Project 26-01)

State law does require that the establishment or modification of our fees to process land use applications must be established by ordinance after the public hearing is conducted. Uh the fee schedule is reviewed annually to ensure that rate structures accurately reflect the cost of services provided.

Finance Director Julie Stall [0:38:39]
Public Hearing on the Adoption of a City Fee Schedule by Ordinance

what that means for the tax levy dollars that we need to provide the services and run the city. We've got a total of 51,986,475. That is for all the funds. This is a 6.4% increase from our 2025 levy. We were able to bring it down from our preliminary September adopted which had a 7% increase.

Finance Director Julie Stall [0:42:07]
Public Hearing on Truth in Taxation for the 2026 Property Tax Levy and Budget

Lakeville continues to hold the lowest tax rate in the major cities in Dakota County. So, we are at the lowest at 33%. This is showing um what that median value home would pay at our tax rate. So on the far left side of this graph, they're paying $1,500 a year. If they were in Egan, they would pay $1,70 a year. So that's an increase of $240. If we look at that same Lakeville median home in Apple Valley, it's roughly $600 more that they would pay if they had Apple Valley's tax rates.

Finance Director Julie Stall [0:44:17]
Public Hearing on Truth in Taxation for the 2026 Property Tax Levy and Budget

Um, and I think the only way we can get to the to to the lowest increase in the county is through uh foresight, sound foresight, good use of the funds that are being that are uh provided to uh staff for the various uses. Um, and then our finance committee who's advising us on and ensuring that we're uh maintaining our financial uh sustainability policy.

Council Member Lee [0:46:13]
Public Hearing on Truth in Taxation for the 2026 Property Tax Levy and Budget

my back of the napkin calculations show that this actually is a ma a modest decrease when you when you factor the population growth in. Um, so I I I applaud again the work that's been done on this. Um, again I want to acknowledge though I mean there are there are there there is real pain people are feeling with property taxes um largely because of other layers of government as well with some of the the the uh the cost that the state has passed back down to the local level. And I think that's important to acknowledge and I appreciate the work that uh that we've done to to help manage that.

Council Member Walter [0:48:40]
Public Hearing on Truth in Taxation for the 2026 Property Tax Levy and Budget

Ordinances & Resolutions (20)

Alternative Urban Area Review (AUR) studyPlan

Study for the southwest study area, with citizen concerns about process and environmental impact.

Final Order on the Southwest Study AreaOther

Document presented to the council, drawing citizen comments and concerns about its accuracy and omissions.

Proposed Action DocumentOther

City document mentioned by citizens as indicating outreach to State Department but not US Fish and Wildlife Services.

Comprehensive Plan AmendmentPlan

Required amendment for the Kyla Crossing project to change land use guidance; also referenced regarding Met Council's approval process.

2040 PlanPlan

Lakeville's existing comprehensive plan mentioned in context of rapid growth.

2050 PlanPlan

Upcoming comprehensive plan update, for which fund balance will be used for a one-time expenditure.

Tree preservation ordinancesOrdinance

DNR and City of Lakeville ordinances mentioned in citizen comments regarding environmental protection.

Resolution abating the reassessment for removal of a hazardous buildingResolution

Document discussed for forgiving a $50,000 assessment.

Kyla Crossing Second Edition Preliminary PlatPermit

Application for 18 new single-family lots.

Zoning Map AmendmentOther

Amendment required for Kyla Crossing to change RM2 to RST2 zoning.

Feasibility reportOther

Report ordered for the 214th Street reconstruction project.

2026 CIPPlan

Capital Improvement Program where the 214th Street project was included.

Resolution ordering improvements and authorizing the preparations of the plans and specsResolution

Resolution for the 214th Street reconstruction project.

2026 214th Street reconstruction project (City Project 26-01)Other

Infrastructure project for road, water, and storm sewer improvements.

Ordinance adopting fees and summary publication of ordinanceOrdinance

Ordinance establishing or modifying city fees.

Resolution adopting the fee scheduleResolution

Resolution approving revisions to the city's schedule of fees.

2026 property tax levyOther

Annual tax levy adopted by the city.

2026 budgetOther

City's annual budget for the coming year.

Resolution authorizing the 2026 purchase and disposal of vehicles and equipmentResolution

Resolution related to capital expenditures for city operations.

Paid Family Leave ActLegislation

New state act coming into play January 1st, 2026, impacting the city budget.

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Lakeville City Council - Lakeville Recorder