Call the Shackleford City Council meeting to order. If you could please take the roll. Council member Delaney. >> Here. >> Council member Whiting. >> Here. >> Council member Contreras. >> Here. >> Council member Lara. >> Here. >> Mayor Lehman. >> Here. >> Please join us in the Pledge of Allegiance. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Item number four, approval of the agenda. Is there any changes to our agenda? >> Nothing from staff, sir. >> Council? Mr. Whiting. >> Make a motion to approve the agenda. >> Is there a second to the motion? Councilor >> Second. >> Councilor Delaney, discussion on the motion? Seeing none, all in favor say I. I. Opposed? Motion passes. Item number five, consent agenda. Any changes to the consent from staff? >> No, sir. >> Council, Mr. Whiting. >> Let's pull five R. >> Five R? Mr. Delaney. >> Like to pull five P. >> I'm sorry, what was that number, councilor? >> Five P. >> P. >> Thank you. >> Any other changes to the agenda, uh, consent agenda? Mr. Whiting. >> Make a motion to approve the consent business as modified. >> Is there a second? >> Second. >> Councilor Contreras, discussion on the motion? Seeing none, all in favor say I. I. >> I. >> I. >> Post. Mr. Reynolds, would you read the approved consent items? >> I will do that, Mr. Mayor. Thank you very much. These are the approved consent agenda items for Tuesday, May 19th of 2026. 5A, the monthly financial review for April. 5B is the monetary limits on tort liability for League of Minnesota Cities Insurance Trust. 5C approves the special event and temporary liquor licenses for Rhythm on the Rails coming this summer. 5D is the 2026 annual roadway pavement markings project. 5E is the Walmart Foundation Spark Good Local Grants Program Application and Award. 5F approves a utilities facilities easement and pond maintenance agreement with KW Seed. 5G awards con- a contract for the Shenandoah Drive and Shinnyan Street intersection improvements. 5H accepts the Xcel Energy's community benefit contribution donations. 5I is surplus property. 5J is award of a bid on Police Department boiler replacement. 5K approves a consumption and display permit for Angels LLC doing business as Taqueria Don Ramon. 5L approves a gambling permit premises permit for the Shakopee Rotary. 5M approves the May 5th, 2026 City Council minutes. 5N approves a cooperative agreement amendment with Shakopee Public Schools for the Safe Routes to School Infrastructure Improvements. 5O approves an agreement with MnDOT for the Safe Routes to School Infrastructure Grant. 5Q approves the liquor license renewals for 2026-27. 5S is the Scott County Multi-Hazard Mitigation Plan Renewal. And 5T is ordinance O 2026 TAC 013 amending the entertainment overlay zone to include additional properties located in the Canterbury Park area. >> Isn't that >> Thank you, Mr. Reynolds. >> Isn't that the one you took home? >> Any question from attorney? No, we good? Okay. Item number six is public comment. If you're here for an item not on the city council agenda tonight, we'd love to hear from you. Go ahead and step up to the table. So, if you're here for an item not on the agenda Welcome. Love to have Love to have you. Have a seat and that microphone does move if you just >> I thought it was at the end of the >> You can go ahead and pull it close. >> I thought that the uh yes, citizens uh portion was at the end of the meeting, but I'm glad to get it done and over with. Do I have to sign something? >> Uh clerk, do we need his name and address for the record? >> sign in, please. Yes. >> All right. Well, my name is Greg Vierling. I'm a resident of Shakopee for nearly 70 years. I'm a veteran. And uh I want to thank the mayor and his council members. I am just totally impressed with way the city is going. The direction. The growth. And honestly, the multi-cultural uh friendliness that our our city has always uh enjoyed. You know, we're named after Chief Shakopee. And uh you know, that that relationship with Thomas Holmes back in 1853. Yes, I looked into our history a little bit. You know, that was a that was a friendly relationship with the Sioux Indians. And uh we embraced that in city of Shakopee and always have. I've seen Shakopee when it was a city of only 5,000 people. Now, it's what? 45,000? And uh we still maintain that wholesomeness through that whole thing. Even though the city politics across the river get ugly and political, this council has kept out of that fray. With all that stuff that's been going on in Minneapolis, prior to all this, I'd go out west and if you people ask you if you where you from, you'd say Shakopee and they would say things like, "Oh, Shakopee is a They're familiar with the Renaissance Festival. And or if you watch the music the movie Pixar Cars, Shakopee is even mentioned in that. We have national recognition and it's I'm proud of it. Uh we've we've demonstrated multicultural acceptance from our founding fathers. No one needs to preach racism to us. The flag embraced our very culture. Farmers in Shakopee, the Indians our community, no one had an issue with it. >> [clears throat] >> I live on a street that's named after Indian name heritage. I did my homework and I found and I'm so proud of this that with all this corruption that's going on in the state of Minnesota, that our city was one of the 241 of cities in Minnesota to actually sign a document to the to the to the governor and the leaders of our state to demand some accountability for where our tax dollars have went cuz they won't answer to anybody else. I thought I was going to come in here and say, "Hey people, let's get on board with that." But my thanks is thank you. Shakopee is mentioned as one of those and I'm not surprised and makes my whole night a lot easier. I'm only just made by one thing and I saw it again as a reminder when I walked up to this council meeting tonight. We have a flag out front that represents complete contradiction of that integrity. And I our state Minnesota our city's anniversary is coming up here this weekend. May 23rd is when we were incorporated. And I think it's an excellent opportunity for our city to take a stand of leadership and show our southern communities like, you know, Glencoe Belle Plaine and and and not only take down that flag to me that and anybody else that we would talk to only represents corruption and cover-up and fraud. Nobody voted for it. It doesn't bring unity. It brings diversity. And it doesn't bring trust which is what this council and what this mayor is supposed to ensure us and give us the ability and the sense of trust and transparency. And thankfully we followed through with this letter demanding that from our governor, but this flag that we're flying in front of city hall and our community center which our forefathers have paid for and put up and paid the taxes to to operate we're flying this flag that only represents division and corruption. And I would like it to immediately be removed. The city doesn't have to fly the state the state flag. Why we are flying that direct contradiction to our standards and that we've demonstrated over the years is is is beyond me and it's compelled me to come here and and say something. Other cities in in the state are taking this issue up right now. And I want this opportunity and I find it a blessing and not just a coincidence that our our anniversary is May 23rd, this weekend. Well, we've got tourism and all sorts of people that look at us and we're known nationally. Let's show some leadership, continue with the leadership that you've demonstrated and take down that flag and at least have a discussion about putting up the other one. That's all I have to say. >> Thank you, sir. We appreciate your input. The current flag as you're probably aware was adopted by the state of Minnesota. We are a statutory city and we do follow state statutes. >> We don't have we're not required, if I understand, sir, to fly that flag. >> And the other problem that we had, at least until Sunday at midnight was they were there was a bill potentially pulling state funding to the cities that didn't fly the flag. Um and we don't want to get into these financial arguments with a body across a river over a flag. >> I think we're being political and that's the one thing we're not supposed to be. The one function of this government, mayor and the city council, is to provide us essential services and protection and and the city municipalities and and provide trust and transparency. And that's why the 241 mayors, including yourself, have signed a letter demanding that. >> Yep. And the the other issue is the way that they created the new flag, they left the public completely out of it. >> Exactly. >> they appointed a a committee, if you will, of their own select. Um and and that's just unfortunate, but if we really step back and take a a at the issue The issue we should be going back to them and pointing out their deficiencies in their processes. If they would have brought all the citizens of Minnesota into the process and had a couple of different options and some >> As a taxpayer, I don't you know, we're getting some we're missing federal dollars and all sorts of other dollars >> Right. Right. >> because of this corrupt government in in across the river. And it's affecting me as a taxpayer and our community. And other states and other cities are flying the flag. How is it that they have the courage to do so, but we don't? >> I've I've noticed that the the seven-county metro area are the least reluctant to change it out. >> And it's exactly why. >> It's because they're in the Met Council >> We and and the one of council member on that represents our district also worked with the Sioux Indians. So, I can't understand why she won't have a problem with with this. Because >> Right. We'll we'll have that discussion. We appreciate your input, Mr. Whiting. >> Just a question, have you ever read the poem from the artist that originally created the Minnesota state flag? >> Uh I've read a lot of things, but unfortunately not that one. >> It's It would surprise you. I'm not going to get into it tonight, but I encourage you to read it. >> I'm not ignorant, sir. I don't I don't need to reinstate the new the old flag. I got a problem with the new one. >> Well, I I didn't vote for it either, so >> Well, it represents corruption in our in our Minneapolis governor across the river. >> like the the fact that the old one what that represents and to the partnerships we have created with the Mdewakanton Sioux community and what that would say to them. So, I encourage you to go read the original with >> Indians. The Indians that I spoke to >> Okay. >> And then I think we're out of time. You You made this political. >> Point is well taken. >> That's supposed to be political. >> Point Point is well taken. We appreciate your input tonight. Thank you for coming down. Your comments are are deeply appreciated, and we'll all take it under advisement, and ultimately it'll be this body that'll make that decision. And uh >> Well, thank you, cuz anything else is a contradiction what we've ever been. And again, so far you guys done an excellent job. Don't be inconsistent. This to me is inconsistent. >> The last word is going to be the state and federal government has not made it easy for cities and counties to operate, and I'm just going to say it at that. >> Thank you. Thank you, Mayor. Thank you, Council. Thank you for your time. >> you. Is there anybody else that would like to address the City Council on an item that is not on our agenda? >> The white man's >> Seeing none, item number seven, business removed from the consent agenda. The first one removed was 5P, and that was removed by >> uh myself. >> Councilor Delaney, Mr. Delaney, go ahead. >> Just got a couple quick questions on this. The um Well, what First was the original cost? Uh what is going to be the total new cost? And how many phases are we looking at? >> Councilor, you're going to have to say it one more time because you weren't on the mic. Thank you. >> So I'll speak in here. Uh what is the original cost? What is the new total cost? And how many phases are we looking at going through? >> So, Mayor and Council, the general contractor cost was 2.1 million. We have 1.7 million budgeted. So, just in this bid alone, um the original bid was 200 and some odd thousand. I think the bid tonight's 120 some odd thousand. So, our goal is to get it down to the original budget. And I think we're doing that because we're not using a general contractor. Um Bill Delaney on our staff who's the landscape architect and senior planner is handling the construction side. So, our goal is So, the masonry is the most important thing according to the architect. The next thing will be the roof. So, he's got that working with the architect right now to get that put out to bid. But, our goal is to get the building sealed up and then a lot of the interior things are things normal contractors could do. Unfortunately, when the architect put it out to bid, it was some pretty large contractors and they built a lot of contingency in. I think this way we're saving profit and overhead and all their contingencies. >> Thank you. >> Yep. >> And if we stay in budget of 1.7 million, how much of that What's the sources for them? >> Yep. It's all park development, Mayor. >> Wasn't there dollars from the preservation people? No? Okay. Mr. Whiting? >> You know, I'm glad to see that Building Restoration Corporation is going to be managing this. This is They're the best at this type of work. So, with that I make a motion to approve the contract with Building Restoration Corporation for $126,314 plus a $10,000 contingency and an additional $3,500 to Brick Work Supply for Glengarry matching and replacement bricks. >> Second. >> Second by Counselor Contreras. Discussion on the motion? Discussion? My I I've I've raised my concerns over the years of this. Not only are we going to have 1.7 million into just these built two buildings, but we're going to have We already have a million and a half into buying the property and moving the people and then we had money in tearing down the properties. This is going to be multi-million dollars into a structure that's worth about $150,000. And it's just bad timing. Bad use of money. I don't think it's going to get used as much as people think. And I early on I really wanted to just hand it over to the historic preservation people and that's what they specialize in, but that's not what we're doing. So, All right. Any other discussion? All in favor say I. >> I. >> Opposed? Myself. Uh was that three to two? >> Mhm. >> Three to two, passes. Okay, the other item that was removed from consent was 5R. Councilor Whiting removed this. Floor is yours, sir. >> Thank you. Um just some concerns, you know, it came across it's uh for authorization submittal of a railroad crossing elimination grant. And that's looking at uh Minnesota streets and Market Streets. And you got to dig through this quite a bit before you find out that uh we're looking at enhancements to Market Street. Uh So, I just want to talk have uh it discussed a little bit so we understand what we're looking at. This is part of the uh uh noise uh train noise or no horn zone for the railroad downtown. We understand we're going to have to close a couple of uh roads here, but uh you know, we're looking, you know, that'd be a possibility, but uh I in my mind to make it affordable, I think we'll probably end up having to do that. That's my personal opinion. Uh So, this would be the the two roads between uh Marshall and Spencer basically that are the only access north and south. So, uh Mr. Jordan, you want to talk about this a little bit just to give us a little more familiarity? >> Yeah, thank you, Mayor and Council. Uh about a decade ago the city completed a um feasibility study for a downtown quiet zone through the city of Shakopee located along 2nd Avenue between Fuller Street and Shenandoah Drive. Um that feasibility study included a range of options that we could do in order to implement a quiet zone. Now, in order to implement a quiet zone, essentially we need to meet safety measures at each of the intersections within that quiet zone. Those are established by the Federal Rail Administration. Um in in layman's terms, essentially we need to make the intersection safer than they are currently today with the train sounding the horn at every single crossing. So, we need to make safety improvements at each of the intersections. Uh so, the quiet zone recommended a few different alternatives. One of the alternatives or scenarios included closing certain intersections because if you eliminate the crossing, you make it very safe because there's no conflicts with vehicles. Um that isn't the only options that we have. We could implement different safety improvements like uh different crossing signals, gate arms at each of the intersections, and other measures like that that cost more money to implement those safety improvements. Um so, this request before you tonight is to submit a grant application through the Federal Rail Administration through their Railroad Crossing Elimination Program. Now, the way we're phrasing this application is that we would look at closing the Minnesota Street intersection, uh using that funding then to make the safety improvements at the adjacent Market Street intersection. So, we would keep the Market Street intersection open, but add safety improvements at that intersection because we would know there's additional traffic that would need to be detoured from Market Street or from Minnesota Street to Market Street with the closing. Um that's the only request that's being made at this time through this federal grant program. We know that there's future opportunities along the corridor and we'll be exploring grant funding in order to make those safety improvements at other intersections. >> Thank you. That was my only question. >> So, you're looking at closing Minnesota? >> Uh Mr. Mayor, that is correct. >> Yeah, I'm not I don't support that. All right. The traffic study that was done makes a mess out of Spencer Street in downtown. Makes downtown not walkable. All right. Any other questions? What's the wishes of council. >> I'll make a motion to adopt resolution R2026-082 approving an application to the Federal Railroad Administration for the Railroad Crossing Elimination Program and approving a state funded program of all IIJA discretionary grant assistance and accept accept a proposal for SRF Consulting I Inc. for preparation of the grant applications. So long. >> Is there a second >> to the motion? >> Second. >> Okay. Discussion on Second by Councillor Lara. Discussion on the motion, Mr. Whiting. >> So once this uh grant is let's say it's accepted, we'll still get to vote on whether we accept it or not at that point. >> Yeah, Mayor and Council. Um we obviously have a lot of other opportunities to explore this project. This is the first step. If we are awarded this federal grant, then we have to go through the grant app the grant award process. We'll have to approve a grant agreement with the FRA. We will have to approve a cooperative agreement with Union Pacific Railroad as they own and operate the railroad facility. We'll have to approve construction contracts, authorize bidding. So there'll be several steps that would come back before the City Council for the opportunity to review and discuss. >> We'll go ahead. >> Um this grant is this annual or is this just a one-time only shot? Do you think we have other opportunities to get this grant in the future? >> Yeah, thank you Mayor and Council. This is part of the uh Infrastructure Investment Jobs Act where there's This is just one of the programs where funding is available and it typically is available every year. >> Go ahead. >> I I think at this point I think it's a great learning curve to figure out uh maneuvering around some of these uh federal grant opportunities for this subject. Uh we can shoot it down later. >> Maybe. >> Mr. Lara? >> Um so, why Minnesota over Market? >> Because Minnesota stops at 4th uh 6th Avenue, doesn't connect to 7th where Minneso- uh Market Street goes all the way up to past 10th. Mhm. >> Mayor and Council, that that is correct and that's the least used crossing. When we did the study, we identified the crossing volumes at each of the intersections and that was why as part of that quiet zone study that was a recommended uh crossing that could be closed uh knowing that we have the adjacent Market Street intersection to the downtown grid system which allows safe travel uh using just simple intersections that are close by in order to navigate and and get across uh through downtown. >> Mr. Whiting? >> Just a comment, I think it'd be the less opportunity to get sued as well. >> Well, [laughter] I you know, there's a whole host of problems that goes along with this. I mean, they have the railroad tracks on Shakopee platted land. We should, long time ago, have been charging them to use our property. Um but we didn't and you can't really fight the FRA because they're a step above Congress as Mr. Reynolds, myself, and the attorneys know over the years. Um and they keep changing the goal post, which is something I've learned. Uh the goal post will continue to change. I would much rather see us make improvements at existing crossings and where where we where we should consider removing crossings should be where there's multiple side by side uh that don't go all the way. You know, Spencer Street is one thing, but Spencer Street doesn't get you on the highway because there's no on and off ramps at the highway. And that was another flaw in the 169 uh improvement where they the state limited the number of accesses. A lot of things that we can't go back and fix because they wouldn't let them fix them at the time, either, so it's it's not a, you know, we saw a closing Apgar, which has two crossings with the switching station by Rar, um and we ended up upgrading that one. Um so, I I would much rather upgrade, especially where you have such a distance between Marshall Road, um you're funneling a lot of traffic onto residential streets instead of Marshall Road, um and other and and kind of spreading it out, if you will, um the traffic patterns that we saw in our last study doing this were were not good. And we already see it today, with all of them open, you can see the backup on First Avenue, on Spencer, blocking off the road uh when the train comes through. And even if the train isn't coming through, you can't get out Spencer. So, people are taking other options, and if them other options close, it's going to make it much more difficult. And if we start putting all the traffic down into Home Street and Lewis Street into downtown to shuffle over First Avenue to catch the light at Somerville, um now you've made the pedestrian downtown not safe. So, we go back and forth. First, we had all the highway going through downtown, that was too much traffic for the businesses, we built the billion-dollar bypass. Now, there's not enough traffic, and we're trying to drive traffic to the downtown, and then it'll be too much traffic. So, anyway, Councilor Contreras? >> It's a quick comment. I guess my my view is I don't want to cuz what we're here for that is the grant, right? To vote on on on on this grant program. I don't want to shut it down right away, cuz I feel like maybe we're missing an opportunity or something that could possibly come up. And um like you guys just talked about, there will be chances if we don't like it then say hey no but I I I am with you that closing this street down isn't it quite the best option at the [clears throat] moment. >> And it hurt it hurts business. >> No I yes I understand that very well very well. >> Yeah. But I what I heard from staff was by doing what they're asking tonight is we're saying we're going to close down Minnesota and improve market. That's pretty much what you said. >> Mayor and council if we accept the grant if we're if we're awarded the grant and we accept the grant that's what those dollars have to be used for. That's correct. >> It's specifically for that. >> Mayor and council yes we'll have to put together a grant application that's specific to those improvements because that's how our application would be scored by the FRA. >> What could we still apply for this grant by saying we want to upgrade both of these crossings to four quadrant pedestrian crossings and stuff? >> Mayor and council not through this grant program because this grant program is specifically tied to eliminating rail crossings. Now that can be done through certain ways like putting grade separation bridges tunnels over across railroads or eliminating crossings. That's what this specific grant program is tied to. The reason why this program was identified as an opportunity for the city to or to achieve these this funding is because this project is very expensive. It's going to have to come through city dollars or outside funding in order to fund the improvements at each of the intersections. By doing these two intersections together we're able to secure outside grant funding for the federal government and fix two of the 10 intersections that are within this corridor. If we don't achieve this funding we'll have to look at other funding opportunities to improve both intersections to basic safety crossing measures to the tune of at least $750,000 each intersection. So if we're able to close one of the intersections that allows us to get two steps closer to the ultimate goal of a quiet zone as opposed to now needing to find funding for two intersections to make improvements at. If we were able if we leave Minnesota Street open because every intersection crossing within the quiet zone needs to be upgraded. So, if Minnesota Street if we want to keep it open, then we need to find the funding to upgrade the safety improvements in order to implement the quiet zone. >> Or we need to find a different inter- crossing to close. >> Mayor, that's correct. And there's obviously other um opportunities in downtown. Um when we went through the quiet zone study, obviously Mr. Mayor, you were a part of that effort back in 2015 and 2016. Coming out of that, the Fuller Street and Minnesota Street intersections were the two that were looked at for closing. Uh Fuller Street is is more of a challenge because that's the signalized access to County Road 69. And when you're talking, Mr. Mayor, about the challenges of getting onto the bypass, that intersection is a that's great opportunity to get onto the highway at a signalized safe intersection. So, closing that would push traffic into more unsafe intersections or through local streets as well. So, we're we're we're limited to the opportunities that we have at certain streets, especially when you get into downtown. And we have, let's say, parking lots on the south side of Second Avenue that we use to activate spaces on the north side. So, if we close some of those intersections through the downtown system, that really creates a pedestrian issue where pedestrians aren't able to safely get across into other areas of downtown. So, I I completely see the the questions and challenges with closing certain street intersections. It It's certainly something we don't pursue um normally. We like to maintain different opportunities to provide connections that are safe. Um but this intersection specifically, due to the the the less the lesser volume of traffic, uh we feel like we can accommodate that at the adjacent Market Street intersection with an improved safety system that would allow pedestrians to cross the intersection because we'll be looking at gate arms and other pedestrian crossing accommodations that we can get through this grant program. >> Councilor Lara. >> So, the point of this is to create a quiet zone, meaning there's going to be less horn blaring. If we didn't close any streets down and we we did go through with improving the two intersections to be more safe, would that still qualify us to reduce horns? >> Uh Mayor Pro Tem, so that's a great question. We need to meet certain safety thresholds. So, at a minimum, we need to achieve what's called the basic safety crossing measures. And And what that is essentially it's gate arms. Now, we could upgrade those to enhanced gate arms where we have one on each side that you'd have to drive through those to get across the railroad. I mean, that doubles the cost of what those safety improvements are. It gets into almost a a math game in order to establish there's a risk index that we need to meet. So, when you add all these safety measures up looking at the crossing volume, looking at the safety history, it goes into a calculation that you need to basically get that safety threshold above what the current safety level is with horns. So, it's not just to say that we need to do X at this intersection and we're going to be solved. We need to know we will have to spend money at each intersection and depending on what the risk actually is, it may drive us to what that safety improvement is. So, I can't give you a straight answer without looking at the full corridor because each intersection plays into every single one um with how that calculation goes because it's a scoring system on on the entire corridor. >> And their scoring metric is totally up to them to decide and manipulate as you go along. So, it's kind of like we'll do this because that's what you're required, and then they'll say, "Oh, but we want this also." That's how they operate because they can. >> Mr. White >> sure if your question was if we close two inter- or do the upgrade to one and close one, that's not going to get the quiet zone. We have to do the whole section. Is am I >> Yeah, you have to go all the way down. But, the question is we can still get a quiet zone if we keep Minnesota Street open. It'll just increase our cost to implement the quiet zone from a court throughout the whole corridor. >> But, the whole corridor needs to be upgraded before we can apply for that. >> To a to a standard that raises the combined total safety number on their matrix to a certain level. >> Mayor Council, that's correct. >> And it's kind of a complicated matrix. Like I say, it's pretty fluid. >> So, Council Lyra, >> do you think it would be worthwhile to weigh both options? >> Well, I think the question really is do you what crossings would you like to close? Crossings would you like to close? Is there any that you'd like to close? >> No, none. >> Okay. Um so, then we have to take a different route. We have to apply for grants that help us make it a safe quiet zone through downtown um without closing crossings. And there's grants that might do a percentage of one crossing improvement. Um Like like the engineer said, the the cheapest fix is to shut them all down and have none to upgrade, but our city will not function that way. So, you know, it might take a little bit longer. Although, there was just recently a federal 50 million a 50 billion plus surface transportation, which included rail, that was just passed. Uh I just read that before I came down here. Um hopefully there's that's a billion for each state, right? That would be nice. We'll see how that turns out cuz I think they base it on population. Um and it'd be nice to get some of those dollars also for some of these things. Mr. Weidlich. >> I just think it'd be great to see what this comes up as. So, what what the costs are and what the uh the challenges are. Um then we can decide on. So, with that I'll call the question. >> Okay. Motion maker was Mr. Whiting, seconded was Mr. Lara, correct? >> I think I was the motion maker. This is for discussion. >> I was the motion maker and >> Seconded by Mr. Lara, and Mr. Whiting called made a motion to call a question. Is there a second to call a question? >> I'll second. I'll second. >> Okay. All in favor say I. >> I. >> Opposed? >> I. >> Motion fails two to three. >> That was for calling the question, right? >> Oh, wait. Sorry. >> So, now we have a motion on the table. Any more discussion? >> Sorry. No. >> Revote. Revote on the call the question or >> We We voted down calling the question, which brings us brings us back to discussion. >> We thought okay. >> Never mind. >> Sorry. >> So, let's find out what >> I'll I'll call the question again. >> [laughter] >> Great. Okay. >> So, we're now voting on calling the question. >> Calling the question. >> Well, >> Now that we're understanding >> We're We're We're at any more discussion, and the first question First question that I think of is, is there a time commitment on this grant? >> Mayor and council, this is for the federal fiscal year 26 and 27, but it's the grant funds would need to be spent before the year 2030 2031, I think in the in the program. >> And we're looking for a grant of 30,000, is that right? >> Uh no, Mayor. I apologize if that if that was confusing. Essentially, we're looking for the There's two different grants that are referenced in the council memo. The one is the construction grant that we talked about. The second grant is the state of Minnesota has a federal um grant matching program for any IIJA funded projects. The state will provide up to $30,000 for applicants to prepare a grant application. So, essentially that first grant is covers the city's cost to prepare the grant application. These grants are they they cost a decent amount of money to prepare due to the federal grants, so the state helps cities fund those grant applications. So, that $30,000 essentially covers the city's cost to prepare this grant application. >> And I know the state in the past has shared some of the cost with the city funded improvements on other crossings. Um and that option is still there also if we wanted to have that option and go for grants, federal grants under the surface transportation that was just passed. >> Good question. >> So, All right, we have a motion on the table. Any other discussion? >> Which one is is recorded? >> The original motion. >> Okay, now the original motion. >> Yep. All right, no other discussion. All in favor say aye. >> Aye. >> Aye. >> Opposed? >> Aye. >> Motion failed. Okay, that will take us to 8A, Fire Department 2025 year in review. Chief Chief Fire Chief Simon, when you're ready to go, the floor will be yours. >> Thank you, Mr. Mayor. Good evening, Mayor and members of council. Welcome to the presentation of the Fire Department 2025 year in review. You each have a copy of the report in front of you. I'm going to hit the highlights here. Uh this was a pivotal year for our department, one defined by unprecedented growth, federal recognition, and a commitment to modernizing our service model to match the expansion of our city. Let's look at the strategic themes that guided us last year. 2025 was not just about responding to calls. it was about preparing for the future. Our growth followed three main points: enhancing staffing resilience, improving response times, and strengthening our community risk reduction programs. Everything that we do is rooted in our department's core mission. One moment here. Little technical difficulty. You know what? Sorry about that. One of my favorite parts of the year in review is the opportunity to share my message. I emphasize that 2025 will be remembered as the year we secured SAFER grant. This is more than a financial achievement. It is a major step forward in safety. It positions us to move toward the full-time professional staffing model a community like ours deserves. Faster response times means less damage and more lives saved. And these goals are supported by the values our firefighters live by every day. Pride, honor, integrity, and service are more than just words. They define how we operate. We carry pride in our history and traditions, honor in our character, integrity in our decisions, and a commitment to serving our community. Now, let's look at the hard data from the past 12 months. In 2025, we surpassed 2,000 total incidents for the first time. That is a 4% increase over 2024. Our jurisdiction, which includes the townships, covers over 51 square miles and a population now exceeding 55,000 and surging significantly during entertainment season. Our call volume is reflective of a high-density urban environment. What exactly are we responding to? While we are the fire department, actual fires make up only about 5% of our calls. Nearly half of our call volume is in rescue and emergency medical services. We are often the first on the scene along with our law enforcement partners for cardiac arrest and accidents. This variety requires our staff to be trained in multiple disciplines and ready for anything. To understand where we are going, we have to look at where we've been. This chart on the screen tells a powerful story. Since 2018, our call volume has more than doubled. In 7 years, we went from roughly 900 calls to over 2,000. And this trend isn't slowing down. But when a fire does occur, it's important to how to look at how effective we are. This is one of our most important metrics. While we had roughly $1.1 million in fire loss in 2025, we protected over $202 million in property value. That is an asset preservation rate of over 99%. And this is the direct result of rapid response and aggressive interior fire attack. Maintaining that level of performance requires constant training. In 2025, our team completed nearly 3,800 hours of training. A highlight was a blue card incident command certification, which standardizes how we operate at larger emergency scenes. We also became early adopters of nearest. It's a new national data reporting system, which will provide better analytics to predict where the next incident might occur. We also placed a large emphasis on firefighter health and expanded annual health exams. And prevention is just as important as the response. We are continuing to focus on the front end of fire safety with proactive community risk reduction. Having a full-time fire inspector has been a game-changer. We completed over 600 inspections and 360 plan reviews for new businesses. In addition, our open house continues to be one of the city's best attended events, allowing us to teach fire safety to over 1,000 residents in a single evening. And to do the job, we need the right tools. In 2025, we welcomed tender two, a dedicated water tanker truck vital for the areas of our city that don't have fire hydrants. We also continue continue to utilize a quick response rescue concept using a smaller, more maneuverable truck for medical calls. This saves wear and tear on our fire engines and reduces response times. And finally, we'll end by taking a look at one of the biggest milestones of the year. The acceptance of the SAFER grant was a transformational moment for Shakopee. By hiring 12 full-time firefighters, we finally have station two staffed 24/7, which started a little little over a month ago. This has and will continue to significantly reduce response times for the west side of the city and allow us to respond to multiple multiple incidents at once. We are proud of what we achieved in 2025 and are ready for the challenges that lie ahead. And with that, I'll be happy to take any questions. >> Questions for the chief. One question from your um pie chart up there. What is good intent? >> I'm sorry, can you repeat that? >> What is good intent? You had a couple of slides back you had the different call responses. >> On your pie chart. >> Good intent. What exactly is that? >> On your various types of calls, if you put up on the screen the various types of calls that you have. >> That one. >> Oh, yeah. Right, your good intent. >> Good intention for calls. >> Yeah, your question is the good intent types of calls and those are uh when what we arrived to is different than what we were dispatched to. So, if we were dispatched to a house on fire, we arrive and that's that's not what it is. It's a burnt food or something like that. That would be a good intent type call. >> Thank you. >> Not cat in the tree. >> That'd be good. >> [clears throat] >> Yeah. >> So, do we do we do we break down um car crash response or is that Well, I I would imagine it's part of the 48%. >> It's It's broken down in the report that's in front of you, but I don't have it in front of me on the screen here. >> Okay. All right. >> Councilor Contreras. >> Thank you, Mayor. Um with your second location now open, is has your response time changed? >> It has, except we haven't fully measured it because of the road construction on Marystown Road, which is affecting our response time. So, >> That's true. >> [laughter] >> kind of a bad timing there. However, we're definitely seeing a reduction. It's just not a true measure of what it will be. >> True. >> Good question. >> Next year. >> Yeah, bad bad timing. >> [laughter] >> Mr. Whiting? >> In the past, we had some discussions about a battalion chief position. Is that in the future? I'm just not seeing it in the in the report here. >> We've implemented them as well. It's not part of the report because it was more of a 2026, so some of these things overlap between late 2025 and early 2026. >> for next year. >> You'll you'll hear about it more next year, but I am here and I can tell you about it right now, and that position is vital to our operations, and we're seeing the value in the position every day when they're out responding to calls, and they're managing our day-to-day operations at both stations. >> Great. Thanks. >> Good question. >> Thank you. >> I'm surprised at how many calls there are to Louisville Township in 25, was it, or 26? >> there? >> 25. 2025, there was 40 some 40, and 2024, there was 42. I just was surprised at them numbers. Um, Just a lot of information there. >> Yeah. >> Thank you, Mayor. >> Yeah, I think I think one of the things that it's important to remind everyone as about as is that what we what we are purchasing with a full-time fire department is the ability to have people available 24/7. There may or may not be an incident. But, when there is an incident, they obviously are available. It's that availability that we are collectively paying for. Uh we would like call levels to be low, but the reality is, especially with our visitors and everyone else that we have coming into the communities, that's not going to happen. Uh but but now we finally have the ability to have people ready to go when the bell rings. They don't have to drive to the station. They're there, they're in the trucks, and they're on the roads. >> Well, and we can respond to two separate on two two sides of town at the same time. >> yes. All right. >> Mr. Wethington? >> And to follow up a little bit, now I think some of the other cities are getting full-time fire departments, but when my when I was working in Savage and the Shakopee fire truck showed up first, I didn't care whose name was on the truck. You know, and I think some of our other communities are following that lead and getting full-time, but uh >> It's in your report. We There's a lot of mutual aid, and there's the opposite side of where we're providing that also. So, a lot of mutual partnerships are are working together, which is a good thing, a very good thing. Did you read Did you It is It is in the council on I I was reading it yesterday, and it's uh good information to see that we have them partnerships, and we're you you're utilizing them utilizing them quite often, and others are utilizing our services, also. So, reciprocal. >> Anything else? Mr. Lara? >> Chief, I just wanted to just uh thank you for uh the direction you're taking the the department. You're reinstating integrity um in the department, not only in our community, but in the surrounding area. So, I I appreciate that, and I'm uh glad to support all the direction that everything's going in. So, thank you. >> Thank you, Mayor and Council. I appreciate that. We have an excellent leadership team, and uh uh very proud to be uh at the leadership helm here of the Shakopee Fire Department. >> An ounce of prevention pound of cure, right? >> Thank you. >> Thank you, sir. >> 8B donation for sauna >> [cough and clears throat] >> excuse me sauna and scholarship fund in honor of Xavier Gillan? Did I pronounce >> Xavier. >> Did I pronounce the name correctly? >> Xavier Gillan is how you say >> I apologize. >> Um good evening mayor and council. Tonight we have the opportunity to recognize a very meaningful and generous donation from the Gillan family in honor of their son Xavier who tragically passed away earlier this year. The Shockey the Shakopee Community Center was truly a third place for Xavier and it meant a great deal to him. It was somewhere where he spent a large part of his time, built relationships and friendships with our staff and felt a sense of connection. In reflecting on that the Gillan family has chosen to give back in a way that both honors his memory and extends that same sense of belonging to others. Their donation will support improvements to the dry sauna and amenity that Xavier especially enjoyed and will also contribute to the scholarship program to ensure that more individuals and families of Shakopee can access the community center. But more importantly than the donation itself is the story behind it. So at this point in time I would like to invite Nick Gillan and his family to share a few words about Xavier and what this gift represents. >> Hi. My name is Monique and I was blessed to be Xavier's stepmom for 9 years almost 9. Xavier graduated from Shakopee High School in 2024 and then went to Southwest Metro in 2025. During his high school years, he found that he was liked by a lot of people, but not necessarily loved and he found so much love at the community center. Um he was there most evenings until close and we had to go and get him. Um he enjoyed the pool and the sauna as well. When he was diagnosed with cancer in September was when the sauna originally started construction and after 42 days, when he came home from the hospital first time, his first thought was, "Is the sauna done yet?" So, he was very um very happy to go there. A lot of high school kids might not find their place at school, but they definitely found it with him at the community center. He was always able to talk with people, whether it was lifeguards, pool staff, people at the front desk. Everybody was always so friendly for him. Um and we are beyond proud to give back in his name. >> Yeah. I'm I'm Nick Gillen. I'm Xavier's dad. I'm presently have knee surgery, so I'm not able to sit very well, but my wife echoed the the sentiments perfectly and he just absolutely loved the community center and this is we feel a great way for us to be able to contribute back to the community and to the city and then with the scholarship to kind of support a legacy uh beyond that. Um and we'll look forward to further funding the scholarship as best we can through uh various events like 5Ks and things of that sort. So, but we're just excited to kind of start this right now and see where it goes. >> Thank you very much. I'd like to extend my deepest condolences to your your family for your loss. >> Thank you. >> Our our our thoughts and prayers are with you. >> Thank you so much. Thank you. >> Mr. Lara? With that, I'd like to make a motion to accept the donation of $12,500 from the Gillan family. >> I'll second. >> Seconded by Council Contreras. Discussion on the motion? Mr. Whiting? >> I'll going to echo what the mayor said and sorry for your loss, but it's great to see that, you know, giving back and thank you for that and uh it's great to see that the community center was a place that uh that we helped or we helped support and then uh that supported one of our youth in the community. So, um it's great to hear. >> We >> And thank you for the donation. >> We find it weird that he's gone and we joke at night like who's going to go pick him up from the CC now? So, thank you for accepting. >> Thank you. >> I I have a question of staff. With a uh gracious donation of this size, generous donation of this size, do we or have we put a picture up on the wall or anything like that? >> So, there's going to be a plaque outside of the sauna that is now open and freshly remodeled um stating, you know, in honor of Xavier. And when that's up, our plan is to have a small like unveiling ceremony um where the family and friends will come and a little celebration and recognition of Xavier. >> Very good. Well, we look forward to that invite. >> Pardon me? We look forward to that invite. >> Absolutely. >> You bet. >> Thank you. It's being made by his employer. >> Thank you for coming here tonight. Any other discussion? All in favor, say I. >> I. >> Opposed? Motion passes. >> Mayor and council, could we get a picture of you with the family? >> Sure. >> Thank you. >> Got chairs in, folks? >> [clears throat] [clears throat] >> Perfect. Thank you. >> [clears throat] [clears throat] >> Okay, moving on to item 9A, long-term financial plan presented by the city's finance director, Mr. Reinhardt. Floor is yours, sir. >> Sure. Uh good evening, Mayor and council members. Uh tonight we have a discussion on the long-term financial plan. This is actually our sixth year uh putting this plan together, so um I remember first putting this together 6 years ago, and it doesn't seem like it's been that long. Um so, I did keep uh some of the background slides. I won't necessarily go too deep into them. Um they've been the kind of the same background slides I've used in the past. Um but, there isn't a set guideline for a long-term financial plan, so it's really however we want to put this together. Uh when we issue bonds uh later this year, or propose to issue them, uh it will check the box in the credit credit credit rating review of having a long-term financial plan. So, it has, um, it does meet that criteria. >> [snorts] >> Um, the long-term financial plan provides, uh, current trends, which can be used to tell story of the past and predict the future. Uh, and then it also includes general fund projections, uh, which provide a preliminary expectation of what you may expect, uh, in a given year when we prepare our annual budget. I've included the model of sustainable cycle of city government. Um, first and foremost, our role as staff and city, uh, council is to provide infrastructure and services that, uh, residents want and need. Uh, when you think about, uh, the expectations for those services, they are pretty high. Uh, short public safety response times, which we talked about earlier, uh, parks and recreation opportunities, uh, safe and efficient and well-maintained roads. Uh, from there we get into how do we, um, fund these services and what systems and processes we put in place to maintain, uh, these high-quality services uh, into the future. Uh, for the first few charts, I split out the amount by property type, um, but in two different charts. The first chart, uh, will show egg, apartment, commercial, and exempt, and industrial. The The second chart will show industrial and totals. Um, I did split these out just strictly for, uh, visual purposes, um, just because the residential and the total are are so much larger than the other property types. Uh, so this chart is based on number of parcels, so not necessarily um, physical buildings. Um, but it shows, uh, property types, uh, by parcels since 2017. Uh, interesting to see commercial has stayed relatively flat over that period, where conversely apartment, uh, industrial, and taxes and parcels have grown. Uh, exempt does include, um, items like storm water ponds, uh, parked on property, so parcels like that, not necessarily all again physical buildings. So, same chart as before, um but residential and total um in the past 10 years residential parcels have increased by 1,808 uh while total parcels have increased by uh 2,070 um as of uh the payable 26 year. >> Mr. Whiting, is this acreage or is this count? >> This is count. >> Okay, so. >> Yep. Yep, and then the um So, the total parcels um you think about some of the bigger or larger acreage parcels splitting up into smaller parcels and becoming residential parcels. >> I I guess I'm at the slide before that with all the uh um the exempt. So. >> Yeah, so a lot of a lot of those because they're parcel count, you'll you'll you may have a retention pond that would be a a parcel. You may have some some right-of-way and you may have things like city-owned park land um and other exempt properties, of course. >> [clears throat] >> It's an ongoing count, I think, is the the answer to Counselor >> It's not It's not acreage. >> So, if we take If we take an example of exempt and we look at 2025 at 837 and 2026 at 854, we did not add 854 new ones in 2024. It's a rolling count. The the difference would be 37 to 54 of how many were added in 26. >> Yep. Correct. >> Makes sense. >> Yeah, it just seems like a lot of parcels. >> Yeah. Yeah, and [clears throat] like I said, a lot of them are could be smaller parcels. They could be a like a just a storm water pond as part of part of a a development or obviously as we've added park parcels. >> pa park? >> Yeah. >> Government building of some sort? >> Yep. Um so, uh this chart shows um Uh sorry, I'm on the wrong slide, am I? On notes here. Um but this chart chart shows uh uh tax capacity. Um I have a um within the long-term financial plan, I also have taxable market value, but they kind of get at the same thing. They're they're figuring out how much our value is pertains to the property tax levy calculation. Uh we've actually seen significant growth in tax capacity over the the past 10 years. Couple examples here, apartment from 2 million to 6.9 million, industrial from 7.9 million to 21.7 million. And then residential, we've seen that grow from 26 million to 52 million in total. We've seen about Well, we've seen 106% increase in citywide tax capacity over the past 10 years. Uh this chart shows Shakopee's fiscal disparities net contribution in terms of tax capacity. So, this is the net amount of what the city contributes and what the city receives as a distribution. Um this is again based on payable 2026 data. Um the >> [clears throat] >> Yeah, so this is the the chart shows payable 2026 data, but if you look at like the last compilation that was put together by net council, it's based on 25 2025 data. We were the seventh largest contributor to the program. That's up from ninth the year before. And we are the only city in Scott County that's a net contributor. So, Belle Plaine, Credit River, Jordan, Prior Lake, and Savage are all recipients of of fiscal disparity dollars. Uh with our growing industrial base, it's gone from about 2.2 million in tax capacity in 2016 to 11.7 in 2026. Um and in terms of tax capacity, it's about 10.2% of our total tax capacity. Uh what's even more interesting is it is such a big number. It's if you had pulled it back a couple of slides and looked at our total commercial tax capacity, what we contribute is more than what we have in commercial tax capacity. So meaning if you want if you chose to eliminate either all commercial properties or fiscal disparities, you'd be better off eliminating all our our commercial property and having a bigger tax base. Um which is mind-boggling to think about. >> But you really don't believe that if we did that that they would lower the fiscal disparities? >> Yeah, you would have to obviously eliminate fiscal disparities from the whole equation which >> It's just not going to happen. >> Yeah. Correct. >> Um >> And then here's a tax capacity captured by TIF districts over the past 10 years. Um it was 1.2 million in 2017 up to 4.9 million in 2026. So I think this slide shows [snorts] that we we've really been successful in increasing tax capacity through the tax increment districts. So keep in mind these developments would not have occurred but for the use of TIF. Uh and we've uh eventually will have uh generated um 4.9 million of additional tax capacity that will be added to the city's tax capacity as of 2026. >> a question on that. Do do the commercial industrial properties in TIF districts, active TIF districts, still count toward the fiscal disparities? >> Yeah, they'll they'll make their they'll they pay towards fiscal disparities contribution. So that's one thing too when we have to factor in how much increment is going to generate, you've also got to take out what would be contributed to fiscal disparities to figure out what your net net amount would be. So yes is the answer to that question. Um and then the years there, so these will be the years that they were decertified or when they're scheduled to be decertified. Um that doesn't mean they they can't still be certified early. Um the example here that I um kind of marked as Amazon, uh which is the um kind of the orange reddish color, that was decertified in 2023 so you won't see that um in the 2024 number on the chart. Here are the changes in city levy by dollar amount. Yeah. Sorry, I did it again. I skipped my note. [laughter] So here's here's that this chart shows the makeup of our levy over the past 10 years. The levy was at 18.93 million in 2017 2017 and increase in the 28.76 this current year. And here are the changes by city levy by dollar amount and by percentage and then the corresponding impact on the city tax rate. So a lot few different numbers in the slide but I think it's all always helpful to have it all in in one spot. So over the past 10 years on average we've seen a levy increase of 984,000 or a 4.18% increase in property taxes. However, we have seen our tax rate drop significantly since 2017. Down to 28.9 for the 2026 payable year the current payable year. And population as you're familiar population has increased by about 77,300 over the past 10 years. And then kind of one final slide here on full-time employees by functional area. Public safety which would be police, fire and building inspections and park and recreation which would include parks, community center and ice arena are the areas we've seen full-time employees added. This is based on the 2026 budget for the 2026 numbers. So it doesn't include things like the safer grant that wasn't part of the the budget but this will be those will be reflected in next year's chart. And I've got some bonus slides that weren't included within the financial plan but since they kind of add to this discussion I thought I would I would include them. Um, so this is the preliminary taxable market value um, as of April 2026. So this would be for taxes payable in 2027. Um, our taxable market value is increasing by uh, 444 million or 4.4%. Um, still can be adjusted between now now and when they have the final assessed values, but um, overall pretty healthy numbers. About 50 Oh, go ahead. >> Question on the residential piece. The the 6.5% So I'm I'm the question is is that property value increases or and or new properties coming on the rolls? >> Uh, Mayor, that that's actually a very excellent question. So it's it's actually about split. So I think when I looked at what the average residential did, it's just slightly over 3%. So the other 3. I'm going to say 3.4% is new new residential. >> Okay. >> Yep. Yeah, and and in in total so out of that 4.4% increase in total, about 50% 51% is a result of new construction. And the rest being existing market values that increased. Um, the one um, kind of healthy thing about this at least um, I think about this a lot is is you're you're seeing increases really across the board. So apartment, commercial, industrial, [clears throat] and residential, um, which is which is healthy when you set your property tax limits since it's you you don't have to worry about necessarily property taxes shifting between um, between property type. >> Another question. Railroad. We're showing railroad valuation at 38 million. Um, they pay taxes on >> Um, well, I think it's mostly the public utility piece that adds up to that. I I can I'd have to get a breakdown to see what um, um what type of value they have. It They It They must, otherwise it won't be part of this, but I'm not sure what what that would be. But I I'd be happy to ask the assessors for that. >> Should be We own the right-of-way. >> Well, I'm just curious if the railroad actually pays taxes. If they do, there's a there's an opportunity for >> the district on the land we own for the improvements for the flood zone. >> There you go. >> Well, since we're since we're on this slide real quick, why the huge decrease in agriculture? >> Um so, you that number I think will will likely be adjusted as they as they kind of go through this process, but um it'll be um kind of what I explained earlier with the parcels. You'll have a have a a large farmland that'll be transitioning into residential. So, it's just the a timing of when it when that market value is being looked at. >> Got you. Thank you. >> And they're They also use the um green acres for taxation purposes for you're allowed so much for the homestead, and but you have to have so much in acreage for the planted, and then you get a tax break and evaluation for that. >> Yeah, I'm I'm guessing the majority of what that difference is is farmland that's turning into residential in 20 27. Um there's a couple of slides in here, so I have one on debt, and then I have one on taxes. These are actually slides I got from the auditor's presentation last year, and that presentation's actually next June 2nd, next council meeting. Um so, they'll be updated for that. So, I'm just going to skip those for now because you'll actually have a somebody here talking about them next next council meeting. Um, so this one here is kind of a comparable slide which we typically incorporate as part of our budget presentations, but I've updated for this year. This is the the comparison of the cost of services on a 350,000 home using 5,000 gallons of water a month. The city's responsible for obviously the property taxes and then the sewer and the storm utilities. The annual cost for Shakopee is the lowest out of our peer comparison cities of 1,296. The other cities range from 1,562 to 2,422. So the one change on the slide from last year is I I showed the I think I showed the $300,000 home, but now I have it set at basically the median value here at Shakopee at 350,000. Just in case you're going back and trying to compare. Um, and then um this slide as we get into the general fund projection, this slide provides some reference points to the previous 10 years changes and how it compares to an annual average. On average over the previous 10 years, we've seen our tax capacity grow by 8.1%. Our total amount we levy as as a city, so this would include operations, capital debt service, EDA, and the EDA that increased by an average of 4.2%. Part of that being debt service for the community center and ice arena. The levy for the general fund operations increased at a smaller amount by an average of 2.6%. For revenues, couldn't necessarily include all categories because the numbers jump around quite a bit. If you think of building permits one year, you might have a really high number and the other other year you you might not. It all depends on the start and end dates. But the one I did use was charges for services. That was probably the most incremental change and that uh by an average of 8.2% per year. Uh on the expenditure side, uh the four functional areas again, general government, um increased by 4.8%, public safety by 6.1, public works 3.9, and parks and rec by 8.1. So, those are the annual average change. Um and then looking back at what kind of drove those expense increases, um kind of anticipating that question, it's almost all staffing and personnel related that were driving those cost cost changes. Um so, in the next slide, we'll have the 10-year projections, um which are uh based on the 2025 budget year and 2025 uh payable year for market value. I'm sorry, 2026. Uh we assume for the functional areas of general government, uh public works, and park and rec would see a 3% increase for those expenses. And then for public safety, we added a half a percentage point since those are primarily um personal uh personal departments. Uh and then on the revenue side, for licenses and permits, intergovernmental charges for services, we used a 3% annual increase. Um and then miscellaneous 2%, and then um kind of backed into what we would put in for property taxes. So, based on all those assumptions, what would we have to increase property taxes at to maintain um kind of the fund balance target that would require about a 4% tax increase. So, I know this is hard to read, um but I I it's I know I have a a copy in your packet as well. Um but this is looking 10 years out. Um and just pointing out a couple things. Um there's um lines on underneath the ending fund balance to compare to the 50% target. Uh the annual change in total revenues and expenditures by percentages, and then the impacts on the levy. Uh again, we plugged in 4% as the needed amount based on those assumptions. Um and then for the um Um, property values, we used the '26 payable year as the base for taxable market value and increase it by 4% year-to-year. Uh, the annual increase numbers are are below what we were talking about with the actual data from the past 10 years from the couple slides ago, but I still think it's relatively reasonable. Um, I would say if we, um, see saw continued increases in license licenses and permits and intergovernmental charges for services, we'd probably see corresponding increases in expenses, too, to kind of net those out, too. So, um, in other words, um, some of the expenses go hand-in-hand with the non-tax revenue and that um, doesn't always go directly to the property tax line. Um, but the idea behind this is that it generally illustrates, um, or sets a baseline of what you could reasonably expect any given year when we look at starting our budget process. Uh, so with that, um, kind of open up to to any questions, but I do feel like this is kind of a nice step as we start to get into the budget process to kind of have a longer look at everything. >> Questions to staff. Mr. Lara. >> How much is left on the community center and the ice rink? >> Um, so I when we issued that, that was a 20-year bond. I'm gosh, I just looked at that, too, when we were talking our our financial report. >> 30th, 2034, I think. >> I think that's about right. Yeah, I I I I I was going to say it's less less than 10 years. I'm not sure on the dollar amount. I, um, I'll for sure have that number actually in my hand the next, uh, next presentation when we have the auditors auditors presentation. Um, I can look that up and I can get that sent out, though. >> I'm going to guess about 15 million remaining and about eight or nine years left. >> Yeah, it's been one of those two where we we can there's provisions where you can actually refund it and that that one's hit the the point where we we have the ability to refund it. The problem is the interest rates haven't cooperated. So, it's been one thing that we've kind of looked at the last couple years of if we could refund it and try to save money, how much nicer would that be, but interest rates have aren't quite cooperating with us to be able to do that. >> I I would point out though, it's a really hard time to read the markets right now because they're kind of contingent on a lot of different things. Uh you see the Fed's probably going to raise interest rates depending on what happens in the Middle East and the the straits and the bottlenecks from supply chains and everything else and that that could drive up interest rates. You're seeing some issues in the bond markets right now and high yields. So, we really don't know until some of them things are wrapped up. Uh it'd be nice if we knew. >> Yeah, and and it's it's very interesting because you you've got a general consensus of the direction it's going and then it doesn't take but a few months before it's the opposite direct the opposite direction, but >> And when you're talking big dollar amounts of refunding bonds or taking out debt, selling bonds, it could make a big difference based on where the markets are. Some certainty would go a long way, that's for sure. Nothing we can handle in this building, but we can certainly keep an eye on it. >> Question over here. >> Question over here. >> Mr. Delaney. >> So, I'm taking a look at the it has global payment fees as far as credit card fees. Is that actually what we're paying to to run credit cards or >> Um so, you were and you're referring to the the bill list or >> Yeah, there's a a council check register. I think that might be >> Microphone. [snorts] >> Yeah, council check register. I don't know if that's part of the package or >> Might be. >> Yeah, so so there the global payments is our merchant processor. We actually just changed merchant processors for the community center. Um but that was the the merchant processor we're using out there, meaning um they're the ones that uh process the credit card fees and and in exchange for processing the credit card fees, we pay them. Um but they're also collecting the credit card fees as part of that. So, it's the credit card fees related to credit card transactions that Park and Rec. >> Do we offer like alternatives such as like Zelle or Cash App or something to kind of reduce that down? Would that make a difference? >> Um can you can you repeat the first part of that question? >> Sure. If people are paying for like using their credit cards and we're being charged fees on top of that, would Zelle or Cash App make a >> So, other other cities do charge a convenience fee on top of that, like a 3%. Um we've chosen just to kind of have our fees, you know, absorb it, I guess absorb it, and it's probably within the fees, I really. Um I I can tell you I it's it depends on who it is who the customer is that, you know, really doesn't mind paying that extra 3%, and there's others that, you know, kind of kind of bothers them. So, um but that that is always an option we could look at as adding a adding a convenience fee or a credit card fee on what we charge for people to use credit cards. Um and I think it would primarily impact the community center because we have a an electronic processing fee within Tyler that we will charge when just to basically submit or uh allow us to um uh have the software that allows people to pay online and to do their permits online. Um with the community center, we don't necessarily have something like that. So, it'd probably be just that functional area that we'd we'd we'd look at. >> The the other thing that you might think about is when we put together free free structures like we just uh went through a fee structure change at the community center. Uh when we had our business operating, we used our fee structure to incorporate that into it. Cost of doing business, but it's kind of in the price of the >> Already. >> product or service. But then you all the The other question I had is we also had to pay monthly charge to have the ability from the merchant service to offer the credit card option. Do we pay a monthly service to >> Yeah, it's always a little convoluted when you when you're dealing with some of these, but they're they'll have um they'll have monthly fees to have to use their service and then they'll have transactional fee transactional fee. And what's kind of interesting, we actually talked they when we just because we recently transitioned our um the processor there the rec center um to answer uh Councilman member Delaney's question, too, it was slightly more, not a ton more, but slightly more expensive if we wanted to charge a convenience fee to process transactions. They had a a different kind of fee model that they had for those that were wanted to have it. So, it'd be adding a little cost processing, but granted we'd be recouping those fees, as well, but Yeah, so they and they'll they'll have um there'll be other Yeah, it's The basically how we have it set up right now is that the credit card fees will we pay whatever Visa's fees are plus a additional fee that goes to the merchant processor. >> So, it's >> credit card fees plus a >> pretty standard. The real question is, do you break it out and have it separate and show it that way or do you bake it into the cost? >> Awesome. Yeah, cool. Thank you. >> Yeah, and and I I can say the reason why we switched our our credit card processor is because it was saving us money with lower fees in the long run. So, we It is something we pay attention to as much as much as we can. >> Anybody else? Thank you, sir. >> Thank you. >> Yeah, thank you. Liaisons reports, which side did we start at last time? >> Here. >> Mr. Lara, we started with you last time. Mr. Delaney, you're up. >> Okay, talking to the mic here. 169 Coalition, the website is backed up um on a zip file so USB. We did present that to the Scott County Historical Society uh this week. Um so that'll get preserved. And also the website will be up for the next 10 years. Um I did attend the Prairie Point grand opening along with the mayor and uh Council Contreras. Uh while we were there, we did hear from a a uh resident who told about his housing challenges and why departments and the services help help him through this process in the community. Um also attended Advocates for Thriving Community. They had a discussion on mental health and addiction. It was well received. There was a pretty large group there. Had some side conversation afterwards. Uh two statistics to leave you with. The leading cause of death for young folks between 10 to 24 is suicide. And one in five high school students have thought about killing themselves. So definitely needed a discussion within the community. And so that was really really good having that. Then on Sunday, it was an honor to join our Lao Minnesotan neighbors, leaders, families, and guests for the first annual Rivers and Roots for the Mekong meets the Mississippi Festival. It was a um several day event. I believe at the conclusion, they said they would definitely do it in Shakopee again. Um also the executive director for uh Council on Asian Pacific uh Minnesotans was there. Um wife and I, we enjoyed the food, the music, the costumes, the cultural activities. And it was one particular item it was an honor talking with the Lao Vietnam veterans that were in attendance. Uh learning about some of their history. Um I I can't imagine fighting a war at 17. Um Also, thank you to Canterbury for providing incredible venue and experience for our guests. So. Thank you, thank you, Mr. Whiting. >> Nothing to report. >> Councilor Contreras. >> Thank you, sir. Um, so on the 8th I attended the SKOL meeting and I forgot my notes, but I got a little cheat sheet here. Um, this county um mainly they were talking about trails and water. So trails, they just um gave a provided a look at the current regional trail system and what the future holds as opportunities um arise and new trail connections between our cities and out into the neighborhood um counties, neighboring counties. And then water, we had a couple people present and um they both shared um data, discussed trends, and presented a few success stories on um the progress being made to clean up our local lakes, rivers, and streams, and provided information on efforts to protect our underground resources. And then on the 9th I attended the Marystown canine canine agility park, which was very well attended. Lots of doggies, lots of puppies. Um, on the 12th I attended the 43rd annual Scott County Law Enforcement Memorial Scholarship Dinner, which is always done on the national um on the national week of law enforcement law enforcement week, and it was awesome to see some of our one of our future officers who will be um attending will be working with us here in in Shakopee. And on the 14th uh attended the Prairie Point grand opening. And also it was great to hear from a resident and hear his story, his success story. And even though this sounds like a controversy, but to see how these buildings, these places places are not just like a building, it's a home for for people who are struggling in life. And they are needed. They're not just those people that, you know, sometimes people say, "Oh, those people. Here they come or here they go." No, those are people who need that opportunity, that chance to succeed in life. And that is um that was a great story. Um and I think I am done. Thank you, sir. >> Thank you. Council member Lara? >> Yes, on May 9th, I also attended the Mary Salon Agility Dog Park ribbon cutting. Um yeah, it's good to see it. It's really interesting. It's uh they have a small dog side and a large dog side. They're mirrored for each other. So, they have the same thing on each side. Just take your small dog there and your big dog over there. And then um yeah, it's it's nice new park to see it uh well used already. >> Wow. Pretty pretty cool to see it used up. Um my report I had I was invited to the Walmart Associate Appreciation event in their parking lot with all the food trucks and Red Bull was out there with their motorcycles and all kind of stuff. Um took a tour with their regional people through the store and the outside. Their remodel actually was pretty good, I think. Um the inside of the store is really nice. The the the grocery side the the the rows are wide. Um you can certainly get two or three carts past in each direction when somebody's stopped and getting something off a shelf. There's plenty of room. The outside of the building looks great. Uh they did some paint work and small side work stuff, too. So, it was really good to see them uh do a makeover in a building that look jeez, I think that was in the >> 2003. >> 2000 2003, 2004 era that that was built. So, it was about time, right? 20 20 years or so. So, it's good to see that they're uh stepping up and uh making [clears throat] them improvements. I also attended the Prairie Point by Beacon and uh Volunteers of America uh did some speaking and and basically my my message was you know, when they whenever you put out a a really broad tough vision and in in anything, you know, whether it's somebody starting up their own business or our own shop or if the city of Shakopee uh but a vision that that Beacon has for that site it comes with challenges. Uh everything comes with challenges. We have our challenges. All businesses do. Uh it's how you how you manage them challenges which we we've seen some of these challenges at at this location and others around town. It's how you manage them. As Mr. Reynolds has pointed out, property management is critical. Um and how you manage them challenges really weighs on on how your success is. So and housing affordability, big topic. Plugged on that, too. It's you know, they're they're hitting it from the back end when when somebody's uh really needs the the the the lift, but housing affordability across the board is is a problem for not just the cities, counties, but states and federal government with all these combined things of inflation and gas prices and energy prices and whatever else goes into the lumber, labor, and and all those things. So you know all government needs to start focusing on housing affordability um at the front end. And also dealing with the the end side then. Beacon's Prairie Point and others. So yep, all in all, uh it was a nice event, nice place, and uh yeah. It's all I have. Mr. Reynolds, do you have anything? >> Uh yes, sir. Uh the end of session. >> Yes. >> Uh we're continuing to go through all of the things that uh uh were passed uh in the middle of the night in some occasions. Uh we we have confirmation that we received $4 million for the hub. We believe that we have some election uh uh changes that we'll be bringing in front of council. We don't have confirmation just yet what they are, but we think and this could be wrong. I just that we we believe we think that it will allow us to not have paying two people for 49 straight days in our conference room to get Garner five votes a week. Um we can consolidate that with the county and all of the cities can consolidate that with one side in the county and then of course we would handle the normal ballot in procedure. We will have a presentation for council on that once we figure out what it is. Um The health insurance consortium, we've been working on that for quite a while. We got word from the Department of Commerce that they would not accept the weighted voting uh proponents or proposition, which both Scott County and Carver County were very much interested in, so we're going to be looking at trying to get a legislative fix for that next year, which means that that'll push this off yet again uh to 2028. We're still going to be to be working on it and and let me back up. This is our our combined consortium health insurance uh with the cities and the counties. Um It was really unfortunate that that was the case because I I I, you know, everybody was getting excited about the possibility that implementing this finally and then Commerce came back and said, "No, we're not going to allow that." So, we will uh look for that legislative fix uh coming up at the next session. Uh and the governor signed a proclamation uh dedicating this week to public works. It's public works week. So, hats off to the public works workers and thank you for all the hard work that you do. Uh and more information will be coming on the various bills that were signed once we can figure them all out. >> Thank you. >> It's not like there's not a weighted vote at the Met Council, right? Sorry. >> I'm not touching that. >> That truth hurts. >> debated me. >> Truth hurts sometimes. >> [laughter] >> All right. 10A city bill list. Questions on the bill list. No questions. 10B news and announcements. Where did we start last time? >> We're down there. >> We were down there last time. Mr. Delaney. >> Okay. Speaking to the mic once again. Grand opening of the Miracle Field of Shakopee. Join the city of Shakopee, Shakopee Lions Club and other community partners from 6:00 to 8:00 p.m. Wednesday, May 27th for the grand opening of the Miracle Field of Shakopee. Miracle Field is fully accessible baseball field of Tahpah Park built for players of all abilities. This event is free and open to the public. >> All right. It's the annual picnic with the police. Save the date for the annual picnic with the police from 5:00 to 8:00 Monday, June 8th at Huber Park. Join Shakopee police and other community leaders for a free picnic dinner, games, activities, and a night of family-friendly fun. No registration necessary. >> Thank you, Jay. Councillor Contreras. >> This was not on there, but I saw it on the Shakopee Park and Rec and website. And it is a Shakopee Snapshot arrived a little earlier than expected in mailboxes. So, some may think that the splash pad is is open now. It's not quite ready. Um yet. The Shakopee Public Works are cleaning and filling the pool this week, and the splash pad will be open next week. So, it's coming, okay? It's just this one got turned around the other day. >> Well, you know, the way this week is weather-wise, it's probably a good thing it's not going to open until next week. >> Yes. >> So. >> So, yeah. That's it. >> Any Any other business? Motions of council? Councilor Contreras? >> I move to adjourn to June 2nd, 2026 at 7:00 p.m. >> Is there a second? >> Second. >> Discussion on the motion? All in favor, say I. >> I. >> Opposed? Motion passes. We are adjourned. >> Thank you. >> Thank you.