HomeMy WebLinkAbout03-24-2025
AGENDA
CITY COUNCIL WORK SESSION
March 24, 2025 - 6:00 PM
Lakeville City Hall, Marion Conference Room
Members of the public can participate in person at Lakeville City Hall, Marion Conference Room. Members of the public may join
the meeting via Teams Meeting, Meeting ID: 276 485 596 886 or by calling Toll Number 1-323-433-2142; Conference ID: 432
130 403#. The mayor will allow for public comments and questions at the appropriate time.
The City Council is provided background information for agenda items in advance by staff and appointed commissions,
committees, and boards. Decisions are based on this information, as well as City policy, practices, input from constituents, and a
council member’s personal judgment.
1. Call to order, moment of silence and flag pledge
2. Citizen Comments
3. Discussion Items
30 minutes a. Heritage Liquor Store Study Tana Wold
20 minutes b. Fourth Quarter 2024 Preliminary General Fund
Financial Report
Julie Stahl
20 minutes c. Social Host Ordinance Jim Puncochar
30 minutes d. Leash Law Discussion Jim Puncochar
4. Items for Future Discussion
5. Committee/ City Administrator Updates
6. Adjourn
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Date: 3/24/2025
Heritage Liquor Store Study
Proposed Action
No formal action is required. Information is for discussion purposes only.
Overview
The current lease for our Heritage Liquor store is set to expire in June 2027. To ensure an
informed decision regarding our future location strategy, we allocated resources in our budget to
engage an external firm for a comprehensive market study. The study was commissioned to
assess the suitability of our current location and, if necessary, identify alternative locations in
coordination with our other three stores. Additionally, the study placed significant emphasis on
market dynamics, industry trends, and a comparative analysis of the advantages and
disadvantages of ownership versus leasing.
In July 2024, we engaged the Shenehon Company to conduct this study. Over the past several
months, we have worked closely with the Liquor Committee to review and prepare a final draft
of the study for consideration by the City Council.
Robert Strachota and Jackson Wiberg from the Shenehon Company will be available at the work
session to discuss the study and present the findings.
Supporting Information
None
Financial Impact: $n/a Budgeted: No Source:
Envision Lakeville Community Values: Good Value for Public Service
Report Completed by: Tana Wold, Liquor Operations Director
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Date: 3/24/2025
Fourth Quarter 2024 Preliminary General Fund Financial Report
Proposed Action
No formal action required. Information is for discussion purposes only.
Overview
The attached financial report and analysis offers readers a narrative overview of the financial
activities of the City's General Fund for fiscal year 2024 (preliminary only - audit not complete).
Supporting Information
1. 2024 4Qtr Financial Report
2. 2024 4Qtr Financial Report Analysis
Financial Impact: $ Budgeted: Yes Source: General Fund
Envision Lakeville Community Values: Good Value for Public Service
Report Completed by: Julie Stahl, Finance Director
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Unaudited
2024 2024 Variance from
Adopted Amended 12/31/2024 Amended Budget Actual 12/31/2023
Budget Budget Actual Positive (Neg)Percent Actual
Revenues
General property taxes 29,821,150$ 29,821,150$ 29,513,138$ (308,012)$ 99.0%26,701,304$ 2,811,834$ 110.5%
Licenses and permits 3,263,360 2,962,810 3,200,704 237,894 108.0%3,489,815 (289,111) 91.7%
Intergovernmental 1,596,841 2,023,734 1,882,970 (140,764) 93.0%3,739,685 (1,856,715) 50.4%
Charges for services 3,095,470 3,238,420 3,807,646 569,226 117.6%3,293,972 513,674 115.6%
Court fines 240,000 240,000 222,790 (17,210) 92.8%238,097 (15,307) 93.6%
Investment income 311,190 611,190 611,190 - 100.0%349,769 261,421 174.7%
Miscellaneous 48,124 106,484 165,560 59,076 155.5%217,762 (52,202) 76.0%
Total revenues 38,376,135 39,003,788 39,403,998 400,210 101.0%38,030,404 1,373,594 103.6%
Expenditures
Mayor and Council 138,400 131,457 101,012 30,445 76.8%125,323 24,311 80.6%
Committees and Commissions 135,989 135,989 138,192 (2,203) 101.6%132,694 (5,498) 104.1%
City Administration 647,060 574,094 571,896 2,198 99.6%592,838 20,942 96.5%
City Clerk 359,100 414,338 414,819 (481) 100.1%197,360 (217,459) 210.2%
Legal Counsel 87,000 97,000 99,102 (2,102) 102.2%74,170 (24,932) 133.6%
Community and Econ. Development 1,205,148 1,217,588 1,057,935 159,653 86.9%1,176,719 118,784 89.9%
Inspections 2,013,354 2,022,239 1,864,969 157,270 92.2%1,904,395 39,426 97.9%
General Government Facilities 731,407 625,598 600,509 25,089 96.0%575,087 (25,422) 104.4%
Finance 1,375,778 1,357,531 1,238,775 118,756 91.3%1,055,442 (183,333) 117.4%
Information Systems 1,063,469 890,578 767,636 122,943 86.2%720,397 (47,239) 106.6%
Human Resources 944,856 932,107 764,355 167,752 82.0%664,244 (100,111) 115.1%
Insurance 250,000 250,000 250,000 - 100.0%250,000 - 100.0%
Police 15,580,253 15,734,243 15,793,353 (59,110) 100.4%14,540,155 (1,253,198) 108.6%
Fire 3,519,424 3,652,731 3,647,440 5,291 99.9%2,892,792 (754,648) 126.1%
Engineering 1,206,320 983,805 815,856 167,949 82.9%767,475 (48,381) 106.3%
Forestry 597,159 597,159 601,873 (4,714) 100.8%543,397 (58,476) 110.8%
Construction Services 622,584 622,584 407,092 215,492 65.4%587,436 180,344 69.3%
Streets 4,461,925 4,340,712 3,764,799 575,913 86.7%4,023,230 258,431 93.6%
Parks 3,734,783 3,757,266 3,733,961 23,305 99.4%3,386,961 (347,000) 110.2%
Recreation 1,056,799 1,105,169 1,103,849 1,320 99.9%890,163 (213,686) 124.0%
Arts Center 984,762 1,130,781 1,219,877 (89,096) 107.9%1,090,195 (129,682) 111.9%
Other 250,000 - - - 0.0%- - 0.0%
Total expenditures 40,965,570 40,572,969 38,957,300 1,615,670 96.0%36,190,473 (2,766,827) 107.6%
Excess (deficiency) of revenues
over expenditures (2,589,435) (1,569,181) 446,699 2,015,880 1,839,931 (1,393,233)
Other financing sources (uses)
Transfer from other funds 1,276,571 226,998 226,998 - 100.0%681,999 (455,001) 33.3%
Transfer to other funds (215,000) (215,000) (215,000) - 100.0%(2,353,880) 2,138,880 9.1%
Total other financing sources (uses) 1,061,571 11,998 11,998 - (1,671,881) 1,683,879 -0.7%
Net change in fund balance (1,527,864) (1,557,183) 458,697 2,015,880 168,050 290,647
Beginning fund balance 21,669,326 22,372,997 22,372,997 - 22,007,407 365,590
Committed (20,000) - InventoryEnding fund balance 20,121,462$ 20,815,814$ 22,831,694$ 2,015,880$ 22,175,457$ 656,237$
Adj fund bal, Dec 31 (net of restricted )20,121,462$ 20,144,363$ 22,695,996$ 22,039,759$
Net change in fund balance %(7.1%)(7.0%)2.1%0.8%
Ratio: Fund balance to CY expends 49.1%49.6%
Ratio: Fund balance to NY expends 46.7%47.2%
Expense Summary:
Personnel services 30,700,340 30,236,710 29,603,911 632,799 97.9%26,691,291 (2,912,620) 110.9%
Commodities 2,371,189 2,357,018 2,120,805 236,213 90.0%2,349,668 228,863 90.3%
Other charges and services 7,822,296 7,897,496 7,140,656 756,841 90.4%7,020,570 (120,086) 101.7%
Capital outlay 71,745 81,745 91,928 (10,183) 112.5%128,944 37,016 71.3%
40,965,570 40,572,969 38,957,300 1,615,670 96.0%36,190,473 (2,766,827) 107.6%
General Fund
Summary Statement of Revenues, Expenditures and Changes in Fund Balances
For the Twelve Month Period Ended December 31, 2024
Comparative
Variance from
2023 Actual
Positive (Negative)
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FINANCIAL HIGHLIGHTS:
The following financial report and analysis offers readers a narrative overview of the financial activities
of the City for year ended December 31, 2024. This report only covers the General Fund. Readers
should take note that this information is preliminary as the City’s annual audit has not been completed
and some amounts may be estimated as the final audit work is still being completed. The readers are
encouraged to consider the information presented here in conjunction with the unaudited financial
statements attached to this report, the adopted budget and the five-year Capital Improvement Plan.
❖General Fund - Revenues
Total revenues are $400,000 higher than amended budget estimates and $1.3 million higher than
the prior year.
❖Property tax revenues.
•General property taxes were lower than budget estimates by $308,000 or 0.9%. All
delinquent taxes are recorded in the General Fund and other funds receive 100% of their
current levy. Tax payments from Dakota County were received in June, July, December,
with the final settlement received in January 2025.
❖Licenses and Permits.
•Licenses and Permit revenues were higher than the amended budget by $238,000. Overall
permit revenue decreased $289,000 over the prior year. The following chart shows the 2024
actual number of building permits as well as a comparison of the 2024 budget to actual.
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❖Historical Building Permits
•As shown in the chart below building permits for single family had record breaking years in
2019, 2020 and 2021. Permits are trending to a steady growth as seen in years past. The
mix of permit types is changing to include a mix of townhomes and apartment complexes.
❖Intergovernmental –
•Intergovernmental revenues are lower than amended budget estimates by $141,000. Police
state aid revenues ($797,000) were $155,000 higher than the original budget. Fire State Aid
($682,000) exceeded the original budget by $106,0000. Revenues for public safety
programs such as traffic safety, protective vest replacement grants, police cadet grant and
firefighter training grants continue to be strong.
•Intergovernmental revenues are lower than the prior year by $1.8 million. This is primarily
due to the prior year the City received $3.15 million in one-time Public Safety Aid funding
and $1.85 million of this aid was reflected in the General Fund – the remainder was reflected
in the Building Fund.
❖Charges for Services
•General government services exceed amended budget estimates by $4,000 but remains
lower than the previous year. The increase is primarily driven by $265,000 in fiscal agent
fees from Dakota 911 and Lakeville Arenas, accounting for most of the variance between
the budget and prior-year comparison.
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•Public Safety revenues are $27,000 below budget estimates. While security services have
increased slightly compared to the same period in 2023, SRO contributions have declined
due to changes in SRO officer staffing. The current fire contract with Eureka Township
expires at the end of 2024. City staff are actively working on a renewal, updating fees to
align with state formula guidance and account for the addition of full-time firefighters. The
2024 fee of $51,825 was billed in June.
•Public works revenues for engineering-related services in connection with developer
construction administration, inspection, and GIS have exceeded the amended budget by
$479,000 and the prior year by $318,000. This increase aligns with the current level of
developmental activity.
•Parks and Recreation revenues are over budget estimates by $110,000 and up $320,000
from the prior year. This growth is primarily driven by higher rental activity at the newly
renovated John Hennen Antlers Park Pavilion and the first full year of operations at the Fine
Arts building.
❖Court Fines –
• Revenues from court fines total $222,000, falling $15,000 below both budget estimates and
the prior year. Court fine revenues, along with the membership fees paid to Dakota 911, are
both impacted by the number of CAD calls. Moderate increases are anticipated.
❖Investment Revenue and Miscellaneous –
•Investment income is $611,000 driven by improved market conditions at the end of 2024.
Investments are typically held until maturity; any temporary market value are expected to
be recovered in future periods.
❖General Fund - Expenditures
Total expenditures are approximately $1.6 million below budget, representing a 4% reduction from the
2024 budget, but remain $2.7 million higher than the prior period. General Fund staff overhead
allocations for Communications and Enterprise funds are now shown as expenditure reductions within
the various General Fund departments rather than Transfers-In.
❖Personnel. Personnel services of $29 million, coming in $630,000 (2%) below amended budget
estimates. However, compared to 2023, personnel costs increase by $2.9 million due to the
addition of new staff in 2024, including two police officers, six full-time firefighters, and three
street and utility maintenance personnel. The increase was partially offset with savings that
resulted from employee vacancies.
❖Motor Fuels. Motor fuels are $74,000 below budget and $62,000 lower than in 2023, reflecting
ongoing fuel price fluctuations. The City does have a contract for fuel prices in place to mitigate
some of the price increases.
❖Street Chemicals. Salt purchases for 2024 are $22,000 lower than the same period in 2023 and
$75,000 below budget. Any purchases made at the end of the 2024-2025 winter season will be
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stored at the central maintenance facility for use in late fall if needed. Current salt storage is at
capacity and staff does not anticipate needing to replenish any reserves in 2025.
❖Utilities. Electric costs are $7,000 lower than for the same period in 2023, driven by energy-
saving lighting improvements. However, natural gas costs have increased by $29,000
compared to the same period last year.
❖Mayor and Council. Expenditures are lower than the same period in 2023 due to changes in
League of Minnesota Cities membership cycle, which now aligns with the City’s calendar year.
❖City Administration. Expenditures are lower than prior year due to the completion of the
community survey and update to the Envision Lakeville report in 2023.
❖City Clerk. Expenditures have increased compared to the prior year due to the costs associated
with conducting elections in the current year. This aligns with typical budgetary patterns, as
election-related expenses often lead to higher expenditures in election years.
❖Legal. Legal fees remain somewhat within budget estimates but are higher compared to the same
period in 2023.
❖Community and Economic Development. Expenditures are $160,000 under budget and $119,000
lower than the previous year. Starting in 2024, the Community and Economic Development and
Planning departments were consolidated.
❖Inspections. Salaries are lower than budget and the previous year due to the retirement of the
Building Official and transition between Building Officials.
❖General Government Facilities. Salaries have increased compared to the same period in 2023
but are expected to remain within budget due to the filling of vacancies. Commodities and other
charges and services are currently under the budget but are anticipated to align with the amended
2024 budget.
❖Finance Department. Personnel costs are lower than budget but higher than the same period in
2023 due to employee vacancies. Commodities are below the prior year and within budget, as
temporary staff required equipment to support the ERP implementation in 2023. Other charges
and services are higher than in 2023 but are expected to remain under the 2024 amended budget,
as internal staff are managing ERP costs instead of using a consultant.
❖Information Technology. The timing of annual maintenance agreements can impact year-over-
year expense comparisons. However, expenditures are currently below budget estimates due to
project delays or incomplete projects.
❖Human Resources. Personnel costs are at 89% of the budget and higher than the same period in
2023 due to transition costs associated with the retirement of the HR Manager in the first quarter
of 2024 and the Payroll Technician in the fourth quarter of 2024. Professional fees are lower
than the prior year, as ERP-related transition costs in early 2023 included upgrading NEOGOV
and initiating the setup of the UKG time and attendance software.
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❖Police. Personnel services are over budget in the current year due to multiple employee
retirements. Additionally, overtime costs are significantly higher than in most years due to the
City’s support of another local agency (City of Burnsville) during a high-profile incident.
Salaries have increased by $1 million compared to the previous year, reflecting new staff
additions approved in the 2024 budget.
❖Fire. Personnel services are higher than the budget and the previous year due to the addition of
six full-time firefighters at the end of the second quarter. Firefighter pay is variable, dependent
on call volume, and will continue to fluctuate as the department transitions to a hybrid model
incorporating both full-time and paid-on-call staff. Commodities are lower than prior year,
reflecting the acquisition of wireless headsets (14) and a chest compression device in the first
quarter of 2023.
❖Engineering/GIS. Personnel services are currently at 90% of budget estimates, primarily due to
employee vacancies and ongoing transitions as the department works to fill these positions.
❖Forestry. Personnel services are within budget estimates but are higher than the previous year
due to new staff progressing through steps. Other charges and services fluctuate based on the
number of ash trees removed from City properties.
❖Construction Services. Personnel services are below budget at 65% due to employee vacancies.
❖Streets. Personnel services are under budget and lower than the prior year, primarily due to
reduced overtime costs from fewer snow events and personnel transitions related to retirements.
Commodity expenses are also lower than the previous year, as fewer chemicals were purchased
at the end of the 2024/2025 winter season. All unused chemicals have been stored for fall use,
and salt storage is currently at capacity.
❖Parks. Personnel services are slightly over budget due to the retirement and transition of Park
and Recreation directors. However, overall expenditures remain within budget at 99%.
❖Recreation and Arts Center. Recreation expenses are within budget in the fourth quarter but are
exceeding the prior year by $214,000. Arts Center expenses are exceeding the prior year due to
added costs associated with the Art Board Grant awarded in 2023 and employee transitions in
the first quarter. Overall expenditures are higher than the budget estimates and the previous
year, driven by the first full year of operations for the Fine Arts building.
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Date: 3/24/2025
Social Host Ordinance
Proposed Action
No formal action required. Information is for discussion purposes only.
Overview
One of the discussion topics at the council retreat earlier this year was a potential change related
to our Social Host ordinance. City ordinance (5-7) is in place to discourage underage possession
and consumption of alcohol, even within the confines of a private residence. The ordinance is
designed to hold persons criminally responsible who host events or gatherings where persons
underage possess or consume alcohol, whether the person hosting the event or gathering
supplied the alcohol or not.
The current ordinance is specific to the consumption and possession of alcohol. Given changes
to state law as it relates to cannabis, consideration could be given to incorporating this into the
existing social host ordinance, as both alcohol and cannabis can be consumed legally by persons
of a certain age. The definition of cannabis, as proposed in an updated ordinance, is as follows:
CANNABIS: Intoxicating cannabinoids, including those artificially derived, cannabis flower,
cannabis products, lower-potency hemp edibles, hemp-derived consumer products, or edible
cannabinoid products, as those terms are defined in Minn. Stat. 342.01, as it may be amended.
We do not commonly use the social host ordinance from an enforcement standpoint. Still, it's a
good tool to have to hold persons responsible who may provide a space for underage individuals
to consume illicit chemicals.
Our City Attorney did review the current ordinance, and provided a draft of what a new
ordinance could look like with the addition of cannabis.
Supporting Information
1. Work Session - Social Host
Financial Impact: $ Budgeted: No Source:
Envision Lakeville Community Values: Safety Throughout the Community
Report Completed by: Brad Paulson, Chief of Police
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Date: 3/24/2025
Leash Law Discussion
Proposed Action
No formal action required. Information is for discussion purposes only.
Overview
One of the topics discussed during the council retreat earlier this year was the city's "leash law"
pertaining to the control of dogs in our community. Staff routinely receives citizen feedback or
recommendations to review our current ordinance as it relates to controlling dogs in public
areas. City ordinance (5-1-9) currently states that dogs must be controlled by a leash not
exceeding 25 ft. in length unless a dog has passed a suitable training program and is under voice
control of the handler, except when a pedestrian approaches within 100 ft. Some residents have
requested that the ordinance be amended to require dogs to be leashed at all times while in
public areas to minimize chances of conflict with other dogs or pedestrians.
Challenges with Current Ordinance:
• As with other misdemeanor offenses, generally any violation must be witnessed by an
officer/community service officer to be enforced by citation. Many times, if a complaint
comes in the situation has changed by the time the officer has arrived, or the dog/ dog
owner are no longer in the area.
• The ordinance specifically lists a dog off leash must have passed the "canine good citizen
test certification program or its approved equivalent". There are numerous training
programs out there in which obedience is taught in a variety of ways, making it difficult
to determine which training would qualify as adequate under this language.
• The ordinance states a dog must be brought under "close control" when a pedestrian is
within 100 ft. This is defined as no more than 6 ft. from handler and dog is restrained so
as not to come into physical contact with any person not of a dog handler's party except
with that person's consent.
Potential Modifications to Consider:
• We could look to eliminate the "off-leash" component altogether, which would remove
any discretion as to suitable training programs allowing dogs to be under voice control.
This would require all dogs to be on a leash, not exceeding 25 ft. while in public places.
We would make exceptions for city dog parks. This would simplify the current
ordinance, however there would still be some enforcement challenges as any violations
would still need to be witnessed by our staff to be enforceable by citation.
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• Some have inquired about adding an electronic collar component, as that technology and
training is more prevalent than when the ordinance was last updated. As it stands now,
we generally treat an e-collar as being under voice control, as it relates to the ordinance.
Some dog owners have spent significant money and resources on training to be able to
enjoy time in public with their dogs off leash and an update to the ordinance requiring a
leash may not be well received by this group. In addition, some dog owners specifically
use large open public spaces to allow their dogs to run off leash while under voice or e-
collar control (i.e. frisbee/ball chasing, etc.).
• Another consideration would be to delegate certain city parks or areas as "on-leash only"
where public shouldn't have concern for dogs running off leash but there would still be
other city parks and areas where that may be allowed. This, however, can add layers to
an ordinance and get confusing to the public when there are different rules for different
parks in town.
In summary, one of the most frequent complaints we get with our current ordinance is from
pedestrians that are approached by an off-leash dog while using city parks and trails. Even if the
dog is friendly, the pedestrian does not always know this as the dog is approaching. There is a
certain comfort level to seeing a dog under control of a leash rather than voice control. Our goal
is to receive Council input on some direction from here as to any appetite to change current
ordinance and what types of changes you'd like to consider researching further.
Supporting Information
1. Work Session Leash Law
Financial Impact: $ Budgeted: No Source:
Envision Lakeville Community Values: Safety Throughout the Community
Report Completed by: Brad Paulson, Chief of Police
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