--- ## author: Sara Ludwig date: D:20260604223717-05'00' --- ## WORKSHOP MINUTES ## OAKDALE CITY COUNCIL ## MAY 26, 2026 The City Council held a Workshop on Tuesday, May 26, 2026 at Oakdale Discovery Center, 4444 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM. ## Present: Mayor Kevin Zabel ## Council Members: Kari Moore ## Andy Morcomb ## Gary Severson ## Katie Wrich ## City Staff Members: Chris Volkers, City Administrator ## Sara Ludwig, City Clerk ## Hannah Dunn, Senior Community Development Specialist ## Jake Foster, Assistant City Administrator ## Andy Gitzlaff, Community Development Director ## Mikaela Huot, Finance Director ## Melanie Lee, Human Resources Director ## Luke McClanahan, Planning Manager ## Nick Newton, Police Chief ## Lori Pulkrabek, Communications Manager ## Mark Statz, City Engineer ## Cory Tietz, Public Works Director ## Kevin Wold, Fire Chief ## Others Present: Nikki Schlepp, LHB ## Jacob Strombeck, AE2S ## UTILITY RATE STUDY Assistant City Administrator Jake Foster explained that Advanced Engineering and Environmental Services (AE2S) completed a comprehensive utility rate study to evaluate the financial condition of each utility, assess whether existing rate structures equitably allocate costs among users, and develop recommendations to support long-term financial sustainability in each fund. City staff is looking for Council feedback on the findings and recommendations. Jacob Strombeck with AE2S went over the rate study objectives, rate study process, and key findings, noting that the Utility System Replacement Fund (USRF) creates transparency challenges and the utility reserve strategy could be improved. Mr. Strombeck reviewed a list of overall recommendations for Council consideration. In response to Mayor Zabel’s question about how a change in the utility reserve structure would affect the fund balance policy, City Administrator Chris Volkers indicated that the fund balance policy would need to be updated to show that the utility reserves have their own fund ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE TWO balance account and therefore, the minimum unassigned General Fund balance could be potentially lowered. Mayor Zabel pointed out that there have been a few utility projects that have not fit into one of the four utility funds and have historically been paid for out of the USRF. City staff will perform an audit of these types of projects to determine how they can be categorized into one of the four utility funds moving forward. Mr. Strombeck moved to the water rate structure base charge and usage charge recommendations. Ms. Volkers pointed out an approximate twelve percent (12%) increase in the residential and apartments quarterly base charge with the AE2S recommendation. Mr. Strombeck explained that studies have shown thirty percent (30%) of total revenue is the ideal target for the fixed base charge rates. City Engineer Mark Statz added that the goal of the recommendation is to better align the base charge for water with the cost of providing the service. Mayor Zabel inquired about the variance of water usage during wet years versus dry years as his preference would be a lesser base charge increase and more emphasis on usage than base charge. Mr. Strombeck offered to review additional ways to accomplish the water rate structure recommendations. Mr. Strombeck continued with the recommendations for the water and sewer rate structures, including a two percent (2%) sewer volumetric charge increase, and a four percent (4%) sewer base charge increase for residential and apartments. Regarding the recommended commercial and irrigation (per meter per month) water rate structure base charge and usage charge, Mr. Strombeck clarified that even though a commercial customer has a specific-sized meter with a certain usage capacity, they may not actually use the maximum amount of water, but still be charged at that rate due to the cost of installing and maintaining the needed infrastructure to provide that capacity. Public Works Director Cory Tietz explained that once a water meter is installed the size of the meter is not changed. City staff is exploring a water meter installation and replacement policy. Mr. Strombeck continued with the water rate structure usage charge recommendations, noting new gallon amounts for the current three residential tiers, scaling down to one tier for apartments, and splitting commercial and irrigation while also scaling down to one tier for each of those uses. If an apartment has individual meters, then those accounts would be treated as residential. In response to Mayor Zabel’s question about the number of households that make up each residential tier, Mr. Strombeck noted that the bulk of users were tier 1 and 2, with almost no users in tier 3. ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE THREE Mr. Foster noted that by implementing the recommended water rate structure tiers, the City would realize a six percent (6%) increase in revenue in 2027. However, individual rate changes would differ depending on each tier, with some tiers seeing decreases and others increases. It was requested that City staff audit a handful of current utility bills using the recommended rate structures and provide the results to the City Council via email comparing the billing/cost for the current rate structure versus the proposed rate structure. Mr. Strombeck presented the sewer rate base charge and usage charge recommendations, noting a slight increase for residential and apartments, a per meter per month structure for commercial, and a slight usage charge increase for all users. Mayor Zabel inquired about other alternatives aside from using the winter month(s) water usage as the metric for sewer usage. Mr. Strombeck suggested using a 6–8-month average or setting a minimum usage value. City staff will explore these alternatives. Mr. Strombeck stated that the financial modeling of the study assumed the Metropolitan Council passthrough charges would rise at a rate of 5-6% annually. Stormwater and streetlights rate structure recommendations were reviewed, with Mr. Strombeck noting a three percent (3%) increase for stormwater and a four percent (4%) increase for streetlights. There were no recommended changes to the existing rate structures. In response to Mayor Zabel’s question about whether other cities own and maintain their streetlight network, Mr. Strombeck explained that it varies city to city, with some contracting with an electric company and others being owned by the county or city instead. Mayor Zabel suggested a financial audit of the stormwater infrastructure needs of the City to give Council a more accurate depiction of what is needed from the stormwater rate structure. Ms. Volkers indicated that the Council will continue to discuss these rates during the Enterprise Fund budget discussion. City staff will follow up with clarifying information as requested. Mr. Foster noted that the financial model will be provided to City staff for future annual rate setting. ## WETLAND OUTLOTS AND CITY OWNERSHIP Due to time constraints, this agenda item will be discussed at the June 9, 2026 City Council Workshop. ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE FOUR ## REVIEW LONG RANGE FINANCIAL MODEL Finance Director Mikaela Huot explained that the presentation tonight will walk through the long-range financial model inputs and results. She went over the purpose of the model which is to help guide future budgeting decisions and help predict financial implications of both near- term and long-term budget decisions. Lastly, Ms. Huot reviewed the characteristics that have the greatest impact on the model and the general assumptions that are used. Community Development Director Andy Gitzlaff tackled the residential growth and commercial growth assumptions for years 2026-2035, and population growth assumptions as it relates to anticipated building permits and construction projects. Mr. Gitzlaff mentioned a lag with population growth as well as taxable market value and tax capacity growth which makes predictions difficult, as shown with the Taxable Market Value Growth for 2025. Ms. Huot added that there will always be a lag from when the building permit is pulled until the full value of construction is realized. The model includes the assumption that 50% of the taxable market value and tax capacity growth is applied in the first year and remaining 50% the second year. There is a two-year total lag from when the building permit is pulled to when full taxable value and tax capacity growth is realized. Ms. Huot confirmed that the 2023-2025 residential growth, population growth, and taxable market value growth are based on actuals; and 2026-2035 values are projections based on residential and commercial development growth to estimate population, taxable market value, and tax capacity growth. Regarding future full-time employees (FTEs) by department and year, Ms. Volkers clarified that these numbers are evaluated each year and adjusted as needed. Council Member Morcomb requested a 5-year history of FTEs for context during the May 28, 2026 Special City Council Workshop budget meeting. In reference to the capital and debt financing assumptions, Ms. Huot pointed out that the model is based on future capital needs, the 5-year Capital Improvement Plan (CIP), one-time versus annual projects, future debt versus cash financing, and annual debt service based on future project financing. In response to Mayor Zabel’s question about whether the CIP budgets include inflation, Ms. Huot confirmed they do. Ms. Huot reviewed operating budget revenue and expenditure assumptions, noting that the property tax levy is the primary revenue source for the General Fund. Next, the General Fund Summary was presented, noting 2024 and 2025 actuals, 2026 budgeted, and 2027 estimates. ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE FIVE In response to Mayor Zabel’s question about what accounts for the fund balance decrease, Ms. Huot stated the assumptions made for ad valorem taxes and the high annual inflationary estimates for expenditures. Council Member Morcomb suggested an additional line item under Expenditures for combined payroll and benefits. Mayor Zabel noted that the Debt Service Fund and the Projected Net Tax Capacity Rate are line items to keep an eye on as their trajectories will be changing in the coming years. Mayor Zabel thanked City staff for including the lag as part of the model as it provides a more accurate financial future landscape. ## GOLFVIEW AND TOWER PARKS PLAYGROUND SELECTION Before getting started, Ms. Volkers noted that an updated engagement plan for Tanners Lake Park is forthcoming. Senior Community Development Specialist Hannah Dunn explained that this discussion is to explore playground options and budget implications for Golfview and Tower Parks. Nikki Schlepp, Senior Landscape Architect and Design Lead with LHB, stated that the project team worked on a redesign for Golfview Park to meet the goals of the Park System Plan, but also lessen the budget overrun. The Council was supportive of including landscaping as part of the project scope and budget. Mayor Zabel inquired about adding a contingency for Parks CIP playground projects. The Council agreed on ten percent (10%). Ms. Schlepp reviewed Golfview Park Concepts A and B, noting that the Parks and Recreation Commission (PRC) recommended Golfview Park Concept B. Mayor Zabel and Council Member Moore were supportive of utilizing the same vendor as Willowbrooke Commons and Helmo Station Park throughout the next iteration of park improvements. Ms. Dunn pointed out that there would be less amenities for Golfview Park if using the vendor from Concept A, due to budget constraints. Mr. Tietz added that vendors are not like-for-like so there are pros and cons to each. ## WORKSHOP RECESSED FOR THE REGULAR CITY COUNCIL MEETING AT 6:56 PM ## WORKSHOP RECONVENED AT 7:25 PM AFTER THE REGULAR CITY COUNCIL MEETING ## GOLFVIEW AND TOWER PARKS PLAYGROUND SELECTION, CONTINUED ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE SIX Ms. Dunn reported that to follow the Golfview Park and Tower Park designs as proposed in the Council Workshop packet materials, the CIP budget would need to be increased by roughly twelve percent (12%) and twenty percent (20%), respectively. Council Members Moore and Morcomb preferred better quality products even at a higher cost. In looking at the current 2026 Parks CIP, Mayor Zabel was hesitant to increase this budget given how much it exceeds any past yearly expenditure. Given the current 2026 Parks CIP budget of $5.2 million, the Council discussed ways to fund the upcoming improvements at Golfview and Tower Parks. Council Member Morcomb suggested pushing out the Richard Walton Park Playground and Improvements project, slated for 2027. Mr. Tietz confirmed that planning could occur in 2027 with construction to start in 2028. Ms. Schlepp explained the Tower Park expenses and ways to reduce spending. In response to Mayor Zabel’s question about the Tower Park configuration, Ms. Schlepp provided one other alternative that would include a very tight switchback from the road. Council Member Morcomb inquired about bid alternate opportunities. Council Member Moore was supportive of pushing a 2027 project(s) to a future year(s) to move forward with the 2026 Parks CIP projects. Mayor Zabel suggested establishing parameters to evaluate park amenities, especially for future year Parks CIP discussions. In response to Council Member Moore’s question about how much of the budget overrun is due to inflation, Ms. Schlepp noted that the design contingency, escalation fee, and contractor fee have not decreased as bidding gets closer, as is typically expected. Mayor Zabel suggested separating the ADA amenities from the park improvements in terms of funding. Ms. Schlepp provided a breakdown of the ADA accessible pathway cost for Tower Park. Council Member Morcomb brought up grant opportunities for ADA accessibility. Regarding the 2026 Parks CIP projects, the Council agreed on the following: • Tanners Lake Park – Hold off on converting one basketball court to a tennis court until additional feedback is heard at the Walking Tour on May 27. • Tanners Lake Park – Push out the concrete plaza to a future year if there are budget overruns. • Tanners Lake Park – Select the playground equipment prior to year end. ## • Golfview Park – Flagship Recreation ## • Tower Park – Flagship Recreation ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE SEVEN Council Member Morcomb asked about the possibility of a straight pathway at Tower Park; however, Ms. Schlepp explained that due to the steep grade, that configuration would not be possible. Ms. Volkers mentioned a pathway between the boulders to allow for simple movement between the two playground containers. The Council agreed that in the future, when requesting feedback from Parks and Recreation Commission, financial guardrails must be set. ## 2026 ECO FAIR RECAP Ms. Dunn provided a recap of the 2026 Eco Fair and shared that feedback was gathered from the vendors and the Environmental Management Commission (EMC). The Clothing Swap, new this year, was a successful addition. Regarding the use of Castle Elementary, Council Member Severson suggested that additional internal space be explored to keep the event at that location. The Council agreed that the Eco Fair (with a Clothing Swap) should continue in 2026, be held at Castle Elementary in tandem with the Tree Giveaway again, especially if it can be held at the North Fire Station, and that staff try staggering the start and end times for the tabled vendors and Clothing Swap. Mayor Zabel thanked staff for all their work to make this event a success. He shared that the variety of vendors was appreciated by those in attendance. ## ADMINISTRATOR UPDATE Ms. Volkers brought up a pending Special Event Permit for a rugby tournament to be played on the pond behind Wild Boar Bar and Grill, along with the City Attorney’s recommendation. After a brief discussion, the Council determined that this event should not be approved, citing safety and environmental factors. Ms. Volkers reminded each Council Liaison to reach out to their advisory body members up for a reappointment to determine if they will serve another term. In reference to the 2026 Acorn Award, the Council will tour the winning properties on ## Wednesday, August 5 th at 4:30 PM. Ms. Volkers provided an update on the Tanners Lake LLC redevelopment project, stating that an Economic Development Authority (EDA) meeting is expected on June 9 th for the EDA to take action on the next steps of the development agreement. The draft of the Oakdale Athletic Association (OAA) contract was reviewed, with Council requesting clarifying language in Section 2, “...February 28, 2029, whichever occurs first...” There was also one ‘OOA’ typo identified in Section 11. ## WORKSHOP MINUTES ## MAY 26, 2026 ## PAGE EIGHT ## COUNCIL TOPICS Council Member Moore shared that the cost of the City-Wide Clean Up Event compared to other dump sites is extremely valuable. Council Member Morcomb shared an update on the PRC reappointments. It was requested that outgoing PRC member Glen Bearth be recognized at an upcoming regular City Council meeting. Mayor Zabel added that the Maplewood Oakdale Lions Club requested a proclamation from the City for an upcoming Community Strides Event Day. It was determined that Mr. Bearth be recognized alongside this proclamation at the June 9 th meeting. Regarding the beach at Tanners Lake, Council Member Morcomb suggested that City staff look into the permitting process to clean it up and possibly install signage explaining City property versus Department of Natural Resources property. Mr. Tietz noted that staff have held off in this regard awaiting possible grant funding for shoreland restoration, but it is a process that can be researched in the meantime. Mayor Zabel requested that the signage with park rules and hours be installed at Willowbrooke Commons. Further he expects signage regarding amplified sound to be installed at Willowbrooke Commons. Administrator Volkers stated due to the many staff priorities right now, it would be completed by June 30, 2026. Mayor Zabel directed it to be done immediately, but no later than the next two weeks and other priorities will wait. City staff will provide a mockup for Council approval prior to creation and installation. In reference to e-bicycles and e-scooters, the Council requested that staff research possible City Code language for adoption to improve public safety around the usage of these bikes and scooters within the City. Mayor Zabel expected staff to have proactively drafted an ordinance amendment proposal already. ## ADJOURNMENT The Workshop was adjourned at 8:47 PM. Respectfully submitted, ## Sara Ludwig, City Clerk