Eagan City Council Regular Meeting December 3, 2024: Budget, Fees, Variance, Great Oaks Bonds, Trails End Commons
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Eagan City Council Regular Meeting – December 3, 2024
The Eagan City Council held its regular meeting on December 3, 2024, at 6:30 PM at the Eagan Municipal Center. The agenda included a consent calendar, five public hearings, and a new business item. Key actions included adoption of the 2025 budget and tax levy, adoption of the 2025 fee schedule, approval of a residential variance, vacating utility easements, authorization of conduit bond financing for Great Oaks Academy, and approval of a planned development amendment for Trails End Commons townhomes.
Consent Calendar
- Approved minutes of the November 12, 2024 meeting.
- Approved personnel items, check registers, contracts, donation resolution, cancellation of December 10 special council meeting, off-sale liquor license for Black Diamond Liquor, 2025-2029 vehicles/equipment/facilities capital improvement plans, 2025 enterprise fund budgets, special revenue fund budgets, Eagan Convention and Visitors Bureau budget, resolution calling for a public hearing on a housing improvement area, encroachment agreement at 1454 Kingswood Pond Overlook, maintenance agreement at 1950 Diffley Road, acceptance of Parks and Recreation Commissioner resignation, final subdivision and planned development for West Publishing Company 8th Addition, and change order for Sperry Tower lighting system replacement. All items were approved unanimously.
Public Comments & Testimony
- 2025 Budget & Tax Levy: Sherry (20-year resident) expressed appreciation for fiscal responsibility but noted her taxes increased 12%. John Schoog (4945 Pine Lane) reported a 15% increase on his overall bill and sought clarification from staff.
- Great Oaks Academy Bond Financing: Corey Johnson (Chair, ISD 196 School Board) opposed the conduit financing, arguing it subsidizes a charter school and could exacerbate racial disparities. Kate Schmidt (Eagan resident, teacher) requested a delay to assess financial impacts on public schools. Anna Williams (ISD 196 board member) asked for a postponement for thorough community engagement. John Vopel (ISD 197 board member) requested more time for deliberation. Additional speakers (Colin O'Neill, Sherry Mishka, and others) supported the school, citing its classical education model and financial stewardship.
Discussion Items
1. 2025 Budget and Tax Levy Adoption Finance Director Josh Veldman presented the proposed general fund budget of $55,135,900 (a 5.3% increase over 2024) and a property tax levy of $52,862,155 (an 8.2% increase, including 3% for park facility improvements). The average residential property tax increase was estimated at 6%, driven by the levy increase and near-flat taxable market values. The city added 12 public safety positions over two years. The council discussed the need to fund rising costs and capital equipment. The public hearing was closed, and the budget and levy were adopted.
2. 2025 Fee Schedule Adoption Assistant Finance Director Brent Wiles reviewed notable fee changes, including a new cannabis registration fee, rental licensing late penalties (10-100% based on delinquency), 4% parkland/trail dedication increase, 5% athletic field increase, 10% shelter rental increase (with a one-renter-per-day structure), new refrigerated ice rink rates, 5% increase for Cascade Bay season tickets, $5 increase for Civic Arena rentals, no increase at Community Center due to upcoming remodel, utility rate increases (water 2.9%, sewer 5.9%, street light 1.5%, storm drainage 13%) resulting in a $4.30/month average increase, and a 0.9% increase for street/trail assessments. Police overtime rates were split: $105/hour in Eagan, $110/hour for mutual aid. The fee schedule was adopted.
3. Variance – 1574 Rustic Hills Drive City Planner Schultz presented a variance request to exceed the 20% building coverage limit to construct a 700 sq ft three-stall garage and 106 sq ft entry foyer, facilitating aging in place. The lot is ~12,000 sq ft, existing home 1,786 sq ft. Neighboring properties have three- and four-car garages. No public comment. The variance was approved.
4. Vacate Drainage & Utility Easements Public Works Director Mathis explained the vacation of existing drainage and utility easements on the former Thomson Reuters property (610 Opperman Drive) to allow replatting as part of the new West Publishing 8th Addition. No objections were received. The vacation was approved.
5. Great Oaks Academy Private Activity Bonds The council considered a resolution authorizing the issuance of up to $14 million in charter school lease revenue bonds to finance Great Oaks Academy’s acquisition and renovation of 3560 Blue Cross Road. Bond counsel Jennifer Hanson (Dorsey & Whitney) and underwriter Jay Romotka (Piper Sandler) explained that bonds are not a liability of the city, and the school would repay via state lease aid ($1,314/student). The city would receive approximately $100,000 in fees. Public comment raised concerns about competition with public schools, demographics, and precedent. Council debate centered on whether the public benefit justified active involvement. The resolution passed 4-1 (Councilmember Sabina opposed).
6. Planned Development Amendment & Preliminary Subdivision – Trails End Commons Planner Schultz presented Lennar’s proposal for 104 townhomes (24 buildings) on 22 acres at the southeast corner of Yankee Doodle and Al Reen Roads. Gross density 4.7 units/acre. Deviations requested for cul-de-sac length, reduced setbacks (25 ft vs 30 ft exterior, 15 ft on corner lots), on-site recreation (20,800 sq ft vs 31,200 required), and tree removal (81.2% vs 30% limit). Staff and applicant confirmed roads would be 32 ft curb-to-curb to meet city standards. A condition was added to require 32 ft width or private streets. The amendment and preliminary subdivision were approved.
Key Outcomes
- Adopted 2025 General Fund Budget of $55,135,900 and 2025 Tax Levy of $52,862,155 (motion carried).
- Adopted 2025 Fee Schedule resolution.
- Approved Variance for 1574 Rustic Hills Drive.
- Approved Vacation of drainage/utility easements on Thomson Reuters property.
- Approved Resolution for Great Oaks Academy private activity bonds (4-1).
- Approved Planned Development Amendment and Preliminary Subdivision for Trails End Commons with modified conditions on street width.
Meeting Transcript
And to the republic which is one nation under that individual with the repeating justice for all that welcome every December 3rd uh regular meeting of the Egan City Council. It's our first meeting of the month of December. We have a fairly substantive agenda tonight, but I hope we can get through it with uh a fairly efficient manner. Uh we might actually make it to a break tonight, but we'll find out. So with that, um Ms. Miller they changes the agenda tonight. No, Mr. Mayor. Uh Council change the agenda for motion. Council Backett, move to adopt the agenda's presented. Second. That's moved and seconded. Uh any further discussion on the agenda. Seeing none, all in favor is going to say aye. I oppose nay. That motion carries. We have an agenda. Uh we have no recognitions and presentations tonight, so I'll move right to our consent agenda. I want to check and see if there are any members of the public who are here on an item that appears in the consent agenda and one who said item pulled for a separate action or had questions on it. Seeing none, I'll bring it back to the council. Council, same question or motion. Councilback. Move to approve the balance of the consent agenda. Second. That's moved and seconded. Any further discussion on the consent agenda. None, all in favor. Sign saying aye. Aye. And opposed to that motion carries. And we've adopted the consent agenda. Uh with that, we'll move to public hearings. We have five public hearings tonight. Uh the first one is going to be the 2025 budget and tax levy adoption. Uh with that, I will turn it over to Ms. Miller. Thank you, Mr. Mayor, members of the council. Uh the state does require cities over 2500 in population to hold a public hearing on their proposed budget and tax levy for the following year. State law does allow the council to approve the budget on the same night of the hearing if you so choose. And if the council chooses not to approve the budget this evening, um you would need to take action at the December 17th council meeting. Uh proposed property tax notices were mailed by the county to Egan residents in mid-November. The proposed general fund budget is a five point proposes a 5.3% increase over 2024. And since the preliminary tax levy adoption in September, there have been no increases or decreases to the general fund budget. The proposed property tax levity levy proposes an increase of 8.2%, which includes 3% towards park facility improvements. So I'm going to turn it over to Finance Director Josh Veldman for a presentation and additional information. Thank you, Miss Miller. Uh good evening, Mayor and Council. I'm here tonight to um touch on, you know, and present the 2025 budget and tax levy, uh commonly known as kind of the truth in taxation hearing. Um and so tonight the action that would be considered by you is to adopt the 2025 budget uh and approve the uh 2025 tax levies as well.
openpublica.com