Lake Elmo City Council — Transcript

Tuesday, March 10, 2026

Infrastructure Development & Inter-Agency Coordination (Railroad & Roadway)

Land Use & Economic Development Strategy (City Parcels)

Environmental Planning & Development Timelines (AUR/EAW)

Public Participation & Transparency in Planning (Community Engagement)

Municipal Finance, Utility Management & Infrastructure Funding (Stormwater Funds)

Governance & Council Procedures (Agenda Setting)

Community Events & Civic Celebrations (USA 250th Anniversary)

Votes (6)

Railroad Permit and CIP for Roadway Engineering

Consensus to move forward with adding to CIP and commencing engineering.

Dissent: None

The council discussed the need for a permit from Washington County for a roadway project near railroad tracks. While exploring piggybacking on existing permits, it was clarified that Lake Elmo would lead the permit process. The discussion moved to including initial engineering and planning in the city's Capital Improvement Program (CIP) to prepare for future development and leverage efficiencies by coordinating with potential county work.

Parcel Marketing Strategies and Environmental Review (AUR)

Consensus to hire a commercial broker for Parcel 1 and to seek competitive quotes for AUR renewal for Parcels 2 & 3.

Dissent: None

The council discussed strategies for marketing city-owned Parcel 1, agreeing to hire a commercial broker to maximize value, especially by promoting its 'rail adjacent' status. For Parcel 3, the concept of an RFP for a 'new urbanist' mixed-use development was favored over the city acting as a developer. Concurrently, the need to renew the Area-wide Urban Review (AUR) for parcels 2 and 3 was addressed, with staff directed to obtain competitive quotes for the $50,000-$60,000 renewal cost, which would be reimbursed by future developers.

Community Engagement Process and Online Survey Integrity

Consensus to proceed with the proposed community engagement timeline, with staff directed to investigate technical solutions for online survey integrity.

Dissent: None

Staff presented a detailed timeline for community engagement on future development, involving website updates, online surveys, open houses, and a public hearing. A key concern raised was the integrity of online surveys, specifically preventing duplicate submissions that could skew results. Staff proposed using existing ArcGIS Survey 123 capabilities to block duplicates and potentially require identifying information to ensure genuine public input.

Use of Stormwater Funds for Street Improvements

Consensus to include analysis of utility-backed debt financing for stormwater capital assets in the upcoming utility study.

Dissent: None

The council explored using stormwater funds for the stormwater components of street improvement projects, noting this has not been current practice. The finance director provided an overview of the stormwater fund's history, fee structure, and projected revenue shortfalls until around 2030. A significant policy debate ensued regarding financing stormwater capital assets through utility-backed revenue bonds rather than general property taxes, aiming for equitable cost recovery from contributors. Staff was directed to integrate this financing model into the upcoming utility study for further review.

Agenda Procedures Discussion

Consensus to draft new ordinance language for consideration in April, incorporating the proposed compromise for adding discussion-only items and items to future agendas.

Dissent: None

The council debated revising the ordinance governing how agenda items are added. Concerns were raised about the current 11-day notice requirement for council members versus staff's ability to make same-day changes. A compromise was proposed: allow a 4/5 council vote to add a 'discussion-only' item to the current meeting's agenda (without action), and a simple majority to add an item to a future agenda (workshop or regular meeting) for potential action. This aims to balance council's need for flexibility with staff's need for preparation and ensuring public transparency.

250th Anniversary of USA Celebration Discussion

Consensus to revisit the discussion in April, with council members and civic organizations encouraged to gather concrete ideas and input on a potential 250th-anniversary celebration.

Dissent: None

The council discussed how to celebrate the USA's 250th anniversary, with the Mayor suggesting a committee involving elected officials, civic organizations, and local businesses. A preference for a fall celebration (e.g., September) over July 4th was noted due to potential attendance issues. Ideas ranged from a single street dance to a week-long festival with different themes, emphasizing community involvement and local business support, with the city acting as a facilitator rather than primary organizer. Further discussion is planned for the April meeting to gather more concrete ideas and community input.

Notable Quotes (18)

The the issue is that county. So, um it'll be it'll be pretty much a process driven by Lake Elmo to get that permit through.

Unknown [0:00:16]
Railroad Permit and CIP for Roadway Engineering

I mean, the other alternative is to say, no, if the developer wants that piece of land, they can put in the sewer. But I I think that as a an entity, we're probably better served working with the railroad ourselves.

Unknown [0:01:21]
Railroad Permit and CIP for Roadway Engineering

I think there's also a logic in if we can do it at the same time, we we obstruct the traffic flow on that road just once rather than a couple of different times. And there's some efficiency in terms of mobilization, demobilization costs that we could achieve if we work with the county on it.

Unknown [0:02:04]
Railroad Permit and CIP for Roadway Engineering

does the council support hiring a commercial broker for parcel one. So that would be someone who could give us uh broker price opinion. They could give us a good idea of what the market looks like. Um feel all the interest on the property. Try to maximize the value of a property knowing that their commission is going to be two to 3% as a seller.

Unknown [0:03:59]
Parcel Marketing Strategies and Environmental Review (AUR)

I'm 100% on board for that. That's I mean there's things that government does well and things that government doesn't do well and I don't know that we've we've got that expertise. No offense anybody, but that's not that's not what we do on a on a daily basis.

Unknown [0:05:07]
Parcel Marketing Strategies and Environmental Review (AUR)

What I want to bring up here is this is one opportunity for an RFP where we can look is at doing a um more traditional neighborhood development, something that's more walkable and trying to get almost like a new urbanist approach to this one site.

Unknown [0:13:30]
Parcel Marketing Strategies and Environmental Review (AUR)

But moving forward fairly soon in April, starting to announce the project, working with Kathy Story in the Fresh, doing our website update. We actually have a page for this project. We just need to build it out, you know, add the report, do things to the page. Um, so working on that in April and then moving into community input. We're looking at an online survey.

Unknown [0:10:48]
Community Engagement Process and Online Survey Integrity

because one of the things you have to worry about an online survey is someone going on 25 times to slant the results. And usually when they do it on a contract basis, they'll look at the URL where it's coming from or the numbers anyway. And if there's duplicates from the same computer, then they will only accept the first one and they discard the others.

Unknown [0:20:25]
Community Engagement Process and Online Survey Integrity

we've recently with the Boulevard Tree program, we've used um an EZRI product like ArcGIS called survey 123. This was just a form. So, I can look into see because I know we can block like duplicates and set it up a certain way. So, I can kind of run that past you and see if you think it's something we already pay for with our GIS.

Unknown [0:23:46]
Community Engagement Process and Online Survey Integrity

The problem we h we have here is is multiple multiaceted. First, let's talk about depreciation. When we buy an asset for the storm water utility, we take it from some funding source, utility, bonds, whatever. It doesn't come off the income statement. There's no line for capital expenditures on the income statement. The depreciation charge is recovery of the cost of that capital asset over time, over the life of the asset. And so when you look at an efficient utility, whether it be storm water, electricity, sewer, water, you name it. You want your operating funds to cover all your operating costs, including depreciation. You want to establish what's the minimum amount of cash that we need to have in this fund to cash flow for the variation expenditures and revenues that occur over time and to replace you know a certain amount of your capital assets going forward. When we look at the storm water fund correct mayor in 2016 17 and 19 the bonds that were issued for the city included bonds repaid from the storm water utility. We've issued, you know, we've issued bonds and every year we've issued bonds except 20 and 25, we've had those portion of those bonds repayable from the water utility and all but three years we had portions paid for from the sewer utility. So in our other utilities, we finance those capital assets and pay for them over a 15-year bond issue. In the storm water, we've been doing two things wrong. One is well, we don't pay for them from the storm water fund. We include them in the bond issue and levy a tax to pay for them. there's no free ride. So the taxpayers are paying for storm water utilities and taxpayers and storm water utility customers are not the same people. They're different people. And so the taxpayer gets a disproportionate burden of paying for storm water costs that benefit tax exempt entities. And so to straighten this out in a way that makes the most sense, we need to set our stormwater utility up so you know everyone that contributes to storm water pays their share of that contribution. And when you put it on a tax role, there's no rational nexus between the value of a property and the storm water contribution. You can have a expensive property that has less storm water impervious area than a cheaper property. That's why you set the utility up in a way that provides equity. So I suggest in this case we take a look at these capital assets and say if we pay for them over time as part of our geo improvement bond issue, you know, what would it look like? We have to raise a rates. There's no question. I think, you know, Clariss has done a good job of looking at that, developing a plan. We talked a little bit last year about we can't double them overnight. We have to find a way to phase them in and subsidize them in a way that makes sense. And we're going down that path logically. We're going down the path on the street side where we where we don't have a utility or enterprise funds to pay for them a little more aggressively than than I thought maybe we should, but you know, we're still going down the right path. We have a plan to reduce our debt to half over the next 10 years, which makes sense, but we need to step back on the storm water utility and take a comprehensive look at that. You know, what if we come in and say we raise our rates gradually to bring it up where it's paying all of its operating expenses, including depreciation over a 10-year period of stock, would be just fine. It's a plan, right?

Clarissa [0:31:47]
Use of Stormwater Funds for Street Improvements

So then would you then create those bonds as a storm water payment? There would be geo utility geo um revenue bonds. So, so as part of your argument saying separating out bonds to pay for the storm water stuff and have the storm water fee pay back those bond versus the taxes. Okay.

Unknown [0:34:57]
Use of Stormwater Funds for Street Improvements

we did not assume um that we would be funding it with debt. How hard would that be to change at this point, Nina? Easy. Yeah. So, we could do an email about that.

Clarissa [0:38:09]
Use of Stormwater Funds for Street Improvements

the current ordinance that you're currently working under was developed during a period of less of less cooperative council and while a current council might feel they don't require impediment stated in that ordinance it does not meet future councils will be as accommodating. We need to have ordinances um if you change it that can function not only for a well well-run council but also a council that has challenges getting along together.

Clark Schroeder [0:43:21]
Agenda Procedures Discussion

Staff can add something to the agenda that or make a change agenda the day of the meeting. It's an elected official. It can take anywhere from three weeks to seven weeks to get something on the agenda. That just seems completely mind-boggling to me.

Mayor [0:44:06]
Agenda Procedures Discussion

Maybe we strike a comp I think you went down a path that that maybe is a good compromise that a council person can vote to add something to the agenda for discussion. And four people have to agree that we should add it, but we can't take any action on it that night.

Unknown [0:49:18]
Agenda Procedures Discussion

My thought was on on that was to appoint a committee to come back and talk about what should be the 250th anniversary. I know we have the Fourth of July parade. I wasn't looking to upstage that. I don't think it has to be on the 4th of July. what does a community want, if anything, to celebrate the 250th anniversary of our country?

Mayor [0:55:04]
250th Anniversary of USA Celebration Discussion

I 4th of July this year 250th year of the USA uh lands on a Saturday. Yeah. And I just generally in Minnesota it's uh they they go to their cabins, whatever. Right.

Unknown [0:56:56]
250th Anniversary of USA Celebration Discussion

I actually really like that idea. Kind of like the weeklong celebration, a different theme each night that supports the local businesses and the mayor has to give a speech every night.

Unknown [1:00:23]
250th Anniversary of USA Celebration Discussion

Ordinances & Resolutions (13)

Washington County's permitPermit

Permit needed for a roadway project near a railroad, requiring coordination with Lake Elmo.

CIPPlan

Capital Improvement Program, where the railroad-related roadway project and Lions Park stormwater project are scheduled.

ReportOther

A comprehensive report discussing scenarios for parcel development and the need for a broker.

RFPOther

Request for Proposal, proposed for Parcel 3 to attract a developer for a 'new urbanist' mixed-use project.

AURPermit

Area-wide Urban Review, expiring March 2027, needing renewal for parcels 2 and 3.

EAWPermit

Environmental Assessment Worksheet, related to AUR, which aims to prevent later issues.

Ciphers projectOther

Previous project for which an AUR was done.

Boulevard Tree programOther

A past program that used ArcGIS Survey 123 for public input.

Utility studyPlan

An ongoing study that will include analysis of stormwater fund financing and fee structures.

OrdinanceOrdinance

The current city ordinance governing adding items to the council agenda, and proposed changes to it.

Robert's Rules of OrderOther

A parliamentary procedure guide used by many councils for agenda amendments.

Offering statementOther

A document for bond issuance, detailing funding sources (tax levy vs. utility revenues).

Strategic planPlan

Larger plan for utility funds, including goals for expense recovery and capital projects.

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