Lake Elmo City Council — Transcript

Tuesday, September 16, 2025

Lake Invasive Species Management

Community Events and Quality of Life

2026 Street and Utility Improvements

2026 Preliminary Budget and Property Tax Levy

Votes (4)

Public Comments

No formal action; comments received.

Wendy Griffin, President of the Lake Association, requested a letter of intent from the city to support their 3M PFOS grant application for a full lake treatment for Eurasian milfoil and curly pond weed. She also noted the recent discovery of zebra mussels in Lake Elmo. Additionally, she made a public request for the city council to consider bringing back a street dance or festival for residents.

Consent Agenda

Approved Unanimously

Moved by Unknown Council Member [21m4s] · Seconded by Unknown Council Member [21m4s]

The consent agenda comprised numerous routine administrative and financial approvals. These included approving payments and disbursements, adopting a resolution for an ordinance publication, accepting donations for the centennial celebration, approving several position descriptions, lease extensions, grant submittals, various pay requests for improvements, security reductions/releases for different editions, and calls for final assessment hearings.

Accept Feasibility Report and Order Public Hearing for 2026 Street and Utility Improvements

Approved Unanimously

Moved by Unknown Council Member [20m50s] · Seconded by Unknown Council Member [21m4s]

Mr. Stanley Pragnus presented the feasibility report for the 2026 street and utility improvements in Lake Heights and Eagle Creek Point Estates. The project entails pavement reclaim, concrete curb and gutter, and storm sewer replacement, estimated at under $2.4 million, with $1.665 million from the city and $727,000 assessed to properties. The water main system is not proposed for improvements, and sanitary sewer will not be extended. A public meeting was previously held with positive feedback. Discussion also included the project's financing, with the city's portion expected to come from bonds and infrastructure funds, aiming to reduce reliance on bonds through new levies. Council Member Jarich specifically advocated for using the storm water utility fund for storm water improvements.

2026 Preliminary Budget and Levy

3-2 Approved

Dissent: Council Member Jarich, Council Member Hearn

Moved by Unknown Council Member [29m24s] · Seconded by Unknown Council Member [29m50s]

Director Julie presented the proposed 2026 general fund budget, totaling $8.88 million (an 11% increase), driven by added staff and various projects. The total proposed property tax levy is $11,497,785, marking a 14% increase over 2025, with a projected $179 annual impact on a median-valued home. The discussion centered on the strategy for capital levies and their impact on debt and fund balances. Council Member Hearn suggested a slower approach to funding capital reserves could still lead to a good financial position based on debt projections. Council Member Jarich highlighted that Lake Elmo's median home property taxes are comparatively high despite a lower tax rate due to high property values. Conversely, Council Member Holtz and the Mayor advocated for a more aggressive, conservative approach to building reserves now to prevent larger financial crises and infrastructure shortfalls in the future, stressing the long-term sustainability.

Notable Quotes (10)

I'm here to ask the city if they would help us by supporting us with a letter of intent. And our intent in doing if we do get the money would be to do a full lake treatment for the lake to deal with Eurasian mil foil and curly pond weed.

Wendy Griffin [0m58s]
Public Comments

I would sincerely hope that the city council would consider possibly maybe might bring back a street dance because that's something that we had when I was younger and and growing up. It would be fun to have some kind of a festival or something going on in Lake Elmo for the residents.

Wendy Griffin [4m40s]
Public Comments

pretty good news actually. Um the geotechnical investigation supports a um pavement reclaim existing roadways in the project area. This is very this is identical to many of the similar past projects including the 2025 project that we're uh finishing up right now.

Mr. Stanley Pragnus [9m56s]
Accept Feasibility Report and Order Public Hearing for 2026 Street and Utility Improvements

So, I would say the end, the final funding is still to be determined because we're sort of piecing together sort of the strategic plan and the levies and such. Um, so we'll have a little bit more information, but yes, the goal of those infrastructure leveies is to fund these capital projects, which have largely been funded only through bonds for the for a number of years.

Director Julie [16m16s]
Accept Feasibility Report and Order Public Hearing for 2026 Street and Utility Improvements

This is another project. We have storm water utility improvements in here and we should be using our storm water utility fund to pay for those improvements. Um because that's why we have the fund.

Council Member Jarich [18m53s]
Accept Feasibility Report and Order Public Hearing for 2026 Street and Utility Improvements

Our total levy uh currently proposed is 11,497,785, an increase of just over 1.4 million, which is a 14% over uh increase over 2025.

Director Julie [28m56s]
2026 Preliminary Budget and Levy

However, if you look at other data and you look at the amount of property taxes paid by a median valued home in those same communities... So, we're on the high end of property tax, actual property taxes paid by median valued homes in the county, even though our tax rate is on the low end because of our high values.

Council Member Jarich [31m22s]
2026 Preliminary Budget and Levy

I think if we can approach it in a in a slower approach versus um and again I know like you said it's not ripping off the band-aid even I know you feel that way but I think this projection again I know it's a projection it's not perfect but neither is the other one then right so but if that's the data that is presented in front of us and I can see that in 12 to 13 years we would improve from being at $60 million of debt lower that down to $23 million of debt versus to $20 million a debt. I think that that shows that that slower approach could work just fine.

Council Member Hearn [33m36s]
2026 Preliminary Budget and Levy

My two cents would be on the premise of the rate of essentially savings. No matter what you have to pay the piper and whether you start the savings at a faster rate now and then there's a smaller hit down the road for for the projections that we cannot have for certainty what the exact cost will be in the year 2039... I would prefer to do it in this way now to try to not have a substantial jump five years or 10 years or 15 years from now where all of a sudden you need to go out for a bond for 15 million bucks on a because you are that large of a shortfall.

Council Member Holtz [44m0s]
2026 Preliminary Budget and Levy

I guess I've seen too many of my friends and my cohorts colleagues in other cities that have run into issues where the I'm just coming at it from an infrastructure standpoint. That's that's what I know. That's that's what I think about. And if we look at the amount of infrastructure that we have, I I think that cliff can get higher if it's not taken care of appropriately at the time it you know the right fix at the or the the right road with the right fix at the right time, right?

Mayor [49m17s]
2026 Preliminary Budget and Levy

Ordinances & Resolutions (22)

3M PFOS grantGrant

Grant submitted to the DNR for lake treatment funds related to PFOS contamination

Letter of IntentOther

Requested from the city by the Lake Association to support their grant application

resolution for summary publication of ordinance related to trash haulersOrdinance

Adopted via consent agenda

AT&T temporary cell tower lease extensionPermit

Approved via consent agenda

3M priority 2 trail grant submittGrant

Approved via consent agenda

2025 street and utility improvements pay request threeOther

Approved via consent agenda

Stillwater School District improvements pay request oneOther

Approved via consent agenda

Eert's edition security reductionOther

Approved via consent agenda

Wildflower fourth edition security releaseOther

Approved via consent agenda

Royal Golf third edition security reductionOther

Approved via consent agenda

2025 mill and overlay accept bids and awardOther

Approved via consent agenda

2025 street and utility improvements call for final assessment hearingOther

Approved via consent agenda

Stillwater Area School District utility improvements call for final assessment hearingOther

Approved via consent agenda

Feasibility reportReport

Report for 2026 street and utility improvements project

Resolution number 2025-059Resolution

Resolution for receiving the feasibility report and calling a hearing on improvement for the 2026 street utility improvements

2026 Street and Utility ImprovementsPlan

Major infrastructure project for Lake Heights and Eagle Creek Point Estates

2026 Capital Improvement Plan budgetPlan

Budget document containing the estimated costs for capital projects

2026 Preliminary Budget and LevyPlan

The proposed financial plan and tax levy for the upcoming fiscal year

Resolution 2025-060Resolution

Resolution for approving the 2026 proposed general fund budget, 2026 proposed property tax levy, and setting the public hearing date

CIP scenariosReport

Financial modeling scenarios presented to the council regarding capital improvement funding and debt projections

Strategic financial planPlan

A future comprehensive financial plan under development by the city

Fire station RFPOther

Request for Proposal for the fire station, to be discussed at a future council meeting

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