Rochester City Council — Transcript
Monday, July 13, 2026
2025 City Financial Audit
2027 Recommended Supplemental Budget
Indoor Recreation Financing Options
Persons Experiencing Homelessness Update
Votes (3)
Review of 2025 City Financial Audit
Jason Boon from Cohen Resnik presented the results of the 2025 audit of the city's financial statements, which concluded with an unmodified opinion. He provided a high-level review of governmental and proprietary fund types, detailing revenues, expenditures, surpluses, and fund balances for various departments and utilities. The council engaged in discussions regarding the municipal recreation fund's financial performance, the city's approach to covering deficits for joint facilities like Graham Marina, and police department overtime expenditures. The audit highlighted the city's strong commitment to quality financial reporting, exemplified by its 54th consecutive GFOA Certificate of Achievement.
Discussion of 2027 Recommended Supplemental Budget
City Administrator Miss Selms presented the 2027 supplemental budget, highlighting a proposed 5.59% levy increase. Key policy discussions centered on absorbing credit card processing fees via a convenience fee or increased levy, and bridging a $1.2 million shortfall in street reconstruction funding due to reduced Local Government Aid (LGA). Council members debated the fairness and implementation of a convenience fee, and the strategic allocation of funds for road maintenance, with Mayor Norton expressing significant concern over the condition of local roads. Consensus emerged to explore a convenience fee but to defer the LGA street funding decision for a more comprehensive policy discussion. Chief Franklin also provided clarification on proposed police staffing adjustments and strategies to manage overtime.
Indoor Recreation Financing Options for Rochester Sportslex
The council initiated a discussion on financing options for Phase Two of the Rochester Sportslex, now referred to as the Rochester Sportslex, aiming to address unmet indoor recreation needs. Recent facility closures, including the YMCA and the announced non-reopening of the dome, underscore the urgency. Staff presented policy considerations, emphasizing affordability, community access, and flexibility as key themes from public outreach. A primary option discussed was installing a dome on the Sportslex site, potentially offering 250,000 square feet of indoor turf, basketball courts, pickleball, and a play area.
Notable Quotes (12)
We are issuing an unmodified opinion on the city's financial statements. Uh, many refer to that as a clean opinion. Just it means that based on the work that we did, our team did, uh, we feel comfortable issuing or, um, saying that the financial statements are fairly stated in accordance with generally accepted accounting principles.
So we jointly built the facility with the county and the hockey association or whatever it's called men Rochester hockey. Uh we operate the facility. We the county currently pays all of the capital like and reinvestment in the facilities because they own the facilities. The city share does the operation.
If there's some way that we can have a dashboard where we can see how much uh levy support we're giving and how much uh how much uh fees that we're getting uh getting for that and if there's a a disparity there we that's where we're going to ask questions.
We we have been discussing the potential for a broader evaluation. I think, you know, we can we'll have more conversation with that in the council in the future. Certainly committed to doing that, too.
is whether or not um we want to continue to fund streets at the level that we had increased it to when we isolated the local government aid there, about $1.2 million. or it could be another amount if people aren't as comfortable with that. That would be increasing the levy beyond what is represented here.
So, I know this is happening all across the country there. you go to stores now and there's of al ofen a credit card fee. My question is we also don't take cash at many places now. So we're we're in this weird place where we're we've sort of pushed people into doing credit for a lot of things and now we're going to charge them more.
Yeah, I'll just provide feedback. I think this makes sense. I'm in favor of it, especially for these areas that have alternatives to that people could avoid the fee if they choose.
our road um health has been a significant concern of mine and I find myself uh agreeing with council member Palmer which he'll probably run from the room screaming because of this but I actually think um we have we have a huge citywide problem with local roads. They are in horrible repair. Milan Overlay in my opinion has not been working well at all.
Yeah. So so that that's my input that I would but as far as this partial and things like that I guess the other thing I'd want to throw into this most of the reconstruction we do is through uh the enterprise things the the assets under underground with be it storm sewer or water delivery or sewer. Um but right now we have an algorithm and a process that we share costs across those groups and it's sort of bothersome that public works takes the lion share of that because they have the you know finishing the road on top even though they're not generally the ones saying these are the roads that need to be reconstructed and I think there's some fairness there that we probably need to work out to be if if you're the one saying um this road needs to be reconstructed because we've had four water breaks in the last three years. You shouldn't just have the responsibility of paying for your water line. You should take more of the cost of driving this project.
I I largely agree with that and I would also point to the fact that we've had a conversation about our our trail networks and not having a sustainable funding source and I would like to look at this a bit more comprehensively of understanding how we're developing sustainables transportation funding sources for maintenance.
Really this is just an opportunity for you to say like one of these is, you know, the right idea at the right time. Maybe it's the right idea at the wrong time or maybe it's just the wrong idea all over, you know.
really just want to emphasize those continued Keith shared themes. Of course, affordability, community access, and flexibility, um opportunities for casual recreation, uh flexible scheduling, better communications around what we have were all themes that we heard in the four or so different efforts of outreach that we had on this topic.
Ordinances & Resolutions (17)
The primary subject of the audit review, covering all city financial activities.
Program that encourages governments to exceed minimum reporting requirements; the city received the award for the 54th year in a row.
Required audit procedure on federal grant dollars, ensuring compliance with federal requirements, due end of September 2026.
The primary subject of the budget discussion, focusing on revisions and adjustments for the upcoming fiscal year.
Bonds issued by the EDA, primarily for the Bioscience Center and Development Services Infrastructure Center in the North Precinct.
Bond for the TIFF portion of the Bioscience Center, which was paid off in 2025.
Bond issued for the construction of Parking Ramp Six, paid down to $15.7 million by end of 2025.
Bonds originally issued for the Public Works and Transit Ops Campus, refunded in 2020, with $13.2 million owed as of end of 2025.
Bonds for the Mayo Civic Center expansion, with $22.7 million owed at the end of 2025.
Bonds for the last sales tax authorization, which were paid off in 2025.
Bonds issued for park improvements at Soldiers Field Pool, Silver Lake, and other locations, funded by a $2 million referendum levy.
Bonds issued for geothermal improvements in city buildings.
The only new bond issue in 2025 ($1 million) for relocating the park maintenance building.
Enterprise Resource Planning software project, discussed in the supplemental budget, including ongoing licensing costs.
A plan related to strategic priorities and foundational principles, with its next update scheduled for an August study session.
Referenced in the discussion on long-term liabilities and sustainable transportation funding sources.
The plan for the regional sports and recreation complex, with ongoing changes considered for future dome installation.