Mound City Council — Transcript
Tuesday, October 27, 2026
Water Treatment Plant Financing
Proposed Concept Plan for 6221 Lynwood Boulevard
2025 City Audit Results
Flock Cameras Policy Discussion
Vacation of Easement at 1604 Dove Lane
Votes (6)
Council Introduction of Proposed Concept for 6221 Lynwood Boulevard
Dissent: Council Member Heric expressed opposition to the proposed density and zoning change during discussion. Numerous residents expressed strong opposition during public comment.
Development Director Sarah Smith explained the concept plan review process, emphasizing it's an initial feedback stage without technical review or vote. Applicant Jason Palm presented a preliminary concept for 30 twin homes, citing limited new housing stock in Mound and targeting empty nesters. He highlighted an HOA-maintained development with storm ponds and pricing between $500k-$800k. Council members raised questions about specific zoning impacts and traffic flow, particularly regarding access to Robin Lane versus Lynwood Boulevard. Public comment was overwhelmingly negative, with residents citing severe concerns about increased traffic congestion and safety on Robin Lane, the lack of fit with the R1 single-family character of the neighborhood, potential for rentals, drainage issues, loss of wildlife, and negative impact on property values. Many residents suggested alternative access points or retaining the R1 zoning. The applicant acknowledged the preliminary nature of the plan and committed to taking feedback for potential reconfiguration, specifically mentioning wetland delineation and traffic studies are yet to be conducted. Council members expressed opposition to the proposed density and zoning change, emphasizing the importance of preserving the single-family character and addressing environmental and traffic concerns.
2025 Audit Presentation by ABDO Solutions
Justin Nelson from ABDO Solutions presented the 2025 audit. The audit received a modified opinion due to specific GASB standards (87, 75, 68) but was otherwise clean. Five findings were identified: limited segregation of duties, issues with financial statement preparation, inadequate retention of receipts (development-related), incomplete claims lists provided to council, and late payment of claims. Deputy City Manager Leila Mihi clarified that these findings largely pertain to practices of previous administrations and staff who are no longer with the city, and that current staff, including Finance Director Lindsay Erdman (who started in Feb 2026), have already implemented changes to address issues like late payments. New finance software is expected to further improve internal controls and segregation of duties. The audit also provided an overview of the city's funds, noting a positive trend in the General Fund balance, and highlighted specific challenges in the Water Fund (a $5.5 million deficit expected to rebound with reimbursements) and Storm Water Fund (a $2 million deficit), contrasting with the Sewer Fund's strong cash balance. Key performance indicators compared Mound to peer cities, showing good standing in current expenditures per capita but higher debt per capita.
Discussion Regarding Flock Cameras
Chief Stensroot provided an overview of the Orno Police Department's use of ALPR (Automated License Plate Reader) cameras, specifically from the company Flock. He stated Orno has two stationary cameras and one flex camera, none currently planned for Mound. The Chief emphasized that ALPRs are a 'force multiplier' for investigations, with data primarily accessed by investigators after-the-fact for crimes ranging from misdemeanors to felonies. He addressed public concerns about 24/7 surveillance, stating that the data is owned by the Orno Police Department, not Flock, and is purged after seven days if not specifically retained for a case. He clarified that officers need a 'law enforcement reason' to access data, not a warrant currently, but stressed that hits are always verified by human officers to prevent misuse or errors. Council members raised concerns about privacy, the potential for misuse, and the 'mass surveillance' aspect, while also acknowledging the need for effective law enforcement tools.
Recognition of Trailblazer Award from NEOGOV
Deputy City Manager Leila Mihi presented the City Council with a 'Trailblazer Award' from NEOGOV, the city's new hiring software provider. The award recognizes municipalities making significant investments or changes in technology. Mihi explained that the city transitioned from paper applications to NEOGOV in December, which has dramatically improved recruitment efforts, increasing applicant numbers significantly (e.g., over 40 applicants for a streets position compared to as few as two previously). She emphasized staff's goal to make processes easier, faster, and better, and thanked the council for supporting these innovations. The award was presented as a symbol of the city's technological advancement.
Water Treatment Plant Additional Funding Information
Deputy City Manager Leila Mihi provided an informational presentation on water treatment plant (WTP) funding, building on previous discussions. She reiterated the $20 million total project cost and the financial management plan to be updated on November 10th. Mihi explained why special assessments and property taxes are not viable options: special assessments would disqualify the city from a low-interest PFA loan and a $5 million PFA grant, making the project $5-8 million more expensive; property taxes are legally prohibited by the state for water fund obligations, as ratepayers must pay for water infrastructure. The feasible options remain raising water rates (a 13.5% increase was previously discussed, expected regardless of WTP) and increasing franchise fees. A proposed $4 increase in franchise fees for 2027 would entirely go to WTP debt service, and not using this mechanism would necessitate a triple (30%+) increase in water rates. Council members emphasized the need for transparency in communicating franchise fee usage and impact to residents, noting public skepticism and the city's limited revenue-generating mechanisms.
Consideration and Action on Vacation of Easement at 1604 Dove Lane
Dissent: No dissent was noted; the vote was solely on tabling the action due to a lack of a quorum for a supermajority vote, not on the vacation itself.
Moved by Acting Mayor Costellano [02:42:00] · Seconded by Council member Heric [02:43:00]
Development Director Sarah Smith presented a request for a public hearing to vacate a sanitary sewer lift station easement at 1604 Dove Lane. The lift station had been removed and its equipment sealed, with a new station constructed elsewhere, rendering the easement unnecessary. The property owner, Beth Luther, had been patiently waiting for this action to proceed with her own property improvements. The Planning Commission had already reviewed and favorably recommended the vacation. Sarah Smith and City Attorney Scott Lansman explained the procedural requirement for a 4/5ths council vote for easement vacations without a petition. As one council member and the Mayor were absent, preventing a supermajority vote for action tonight, the public hearing could proceed and close, with the action of approving the vacation to be tabled to the next City Council meeting. Council agreed to this approach to move the process forward efficiently.
Notable Quotes (18)
This is really an opportunity an opportunity to ask questions and also for the folks that are with us to a maybe ask some questions uh and share your thoughts with uh the interested party in this case Mr. Palmi.
First of all, come off Lynwood. I disagree with you wholly on the axis...Second of all, if you have access point, you're going to have people walking down the sidewalks, park, access to the the uh the Dakota Trail. And then when you're selling a new neighborhood, you have open house signs, everything else, people blocking the neighborhood, and then rentals and section 8. That's my main concern.
my concern is what is my pri what am I going to get for a buffer zone between my property and the new development? Or are they going to nuke every tree in there like they did when they put in Robin Lane? Is there going to be a privacy fence put in to give me the privacy that I've had for the last 33 years?
First is that this is R1 land already inside of an R1 neighborhood. Uh code says that reszoning should only reflect a change in the city's goals or conditions. Uh nothing here has changed. You guys reconfirmed the 2040 plan in 2024 which said that Mount is a fully developed and committed to a predominantly single family character.
Traffic and safety are the number one problem with this development. Okay, it took me three minutes just to get out of my neighborhood this morning. It is so busy already and we have kids riding their bikes, going up and down the sidewalk, people walking their dogs. Putting 30 units in there is insane.
I appreciate your thoughtfulness to the project and to what mound may need. Um I guess at this point I'm feeling opposed to the density and to changing it from R1. I I do believe that the zoning designation establishes kind of the character of the neighborhood, which I know everybody really appreciates.
limited segreg limited segregation of duties is the first finding. Again this one is fairly self-explanatory. Again just um having a limited number of staff or staff um stretched in different areas doing multiple duties um in a transaction cycle such as paying bills um or uh reconciling the bank accounts.
I want to clarify that the fiscal 2025 audit precedes both director Erdman and I. This is an audit of the city's financial health and statement in 2025. I started November 2025. Director Urban started in February 2026. And so most of what you are seeing is um the auditing of past practices by previous administration.
I do think with a soft um a new financial software that will have um different people looking at uh invoice stops along the way. Um I think it's hard to fully speculate um at this time, but that's kind of my assumptions based off of the um demonstrations that we've seen from um software companies.
I know one of our investigators just um solved a dumping complaint and they were able to find the vehicle on flock and identify the driver and remedy that situation without even um you know too much work into it and and so that the person that owned the dumpster could get that stuff out of there because it's costly to them. So um that's how we utilize them.
247 surveillance on people who are not breaking the law it is problematic.
We don't need a warrant right now to access our data. What I'm saying is we need a law enforcement reason an investigative reason to access that data just like we would the Department of Motor Vehicles site...
We transitioned to that last December from paper applications. Um, it's been an incredible help to us from a recruiting standpoint. Um we just closed a recruitment for a streets position and had over 40 applicants in the past. Um we've had as little as two applicants for positions.
If we were to bond for this project on the open market, like a road construction project, we'd be subject to current interest rates and we would likely spend significantly more paying back this debt. We don't want to do that, especially on a project of this size. And so the public facilities authority does do these loans to cities who are building water treatment plants or wastewater treatment plants um at a much lower interest rate.
The state of Minnesota prohibits cities from doing this. Um because the a water treatment plant is considered an obligation of your water fund. Um and so the state of Minnesota legislature says if you are going to build something that is meant to be used by rateayers, your rateayers need to pay for that infrastructure.
if you if you can show us the the comparables, the number comparables, I think that's what I think take my water bill if you want. I don't care. Yeah, you can use mine too. But but I think that's what residents and also the council to make informed decisions can look at that and make sure we are presenting the best case for this back and transparency too. Of course.
Uh the reason for the request which has been proposed by the public works department is that the lift station has been removed and the existing equipment that's underground has been uh sealed. So there is some equipment still underground but the structure has been taken out uh and a new lift station has been constructed in an alternate location. Therefore, there is no longer the need for an easement on the property.
The most important part is that we if the council opens up the public hearing and closes the public hearing or even carries the public hearing over, which you may or may not decide to do, we have satisfied that requirement. And that that's really the time commitment because we have to submit, we have to publish twice, we have to mail.
Ordinances & Resolutions (10)
Approving public gathering permit for the Mound tree lighting.
City policy requiring council review of concept plans for certain developments.
Residential zoning for single-family homes, often referenced in the context of the proposed Lynwood Blvd development.
Zoning concept allowing for flexibility in development, approved by conditional use permit, proposed for the Lynwood Blvd site.
City's comprehensive plan, reconfirmed in 2024, stating Mound's commitment to a predominantly single-family character.
Governmental Accounting Standards Board pronouncements related to leases, other post-employment benefits, and pensions, causing a modified audit opinion.
City's new hiring software, for which it received a 'Trailblazer Award'.
City's financial plan guiding decisions on debt and fund balances, to be updated and presented in November.
Low-interest loan and grant from the Public Facilities Authority for water and wastewater treatment plants, crucial for WTP funding.
Resolution for the vacation of an easement at 1604 Dove Lane.