Rochester City Council Regular Session - September 23, 2025
Rochester City Council Regular Session - September 23, 2025
Note: The agenda and transcript indicate the meeting was held on Monday, September 22, 2025, but the instruction provided states the meeting date is September 23, 2025. This summary uses the instructed date.
The Rochester City Council met for a regular session on September 23, 2025, at 6:00 p.m. (Rochester Public Utilities Community Room, 4000 East River Road NE). The meeting covered a wide range of topics including public comment, legislative updates, consent agenda approvals, public hearings on development plats and CDBG funding, the 2026 preliminary tax levy and budget, a renewable energy power purchase agreement, and a tabled item on administrative citations.
Consent Calendar
- Approved the minutes of the September 8, 2025 meeting.
- Approved accounts payable for September 22, 2025, totaling $15,531,126.40.
- Approved the mayoral appointment of Leah Nelson to the Library Board.
- Approved Capital Projects Semi-Annual Transfer of Funds, amendments to Special Events ordinance (first reading on October 6, 2025), non-WQPP special assessment interest rate of 5.00%, designating the Office of the City Clerk to administer administrative citations (this item was later pulled and tabled – see below), 2026 State Bonding Priorities Resolution, agreement with Govstack for website hosting ($69,326.80 + $21,824.40 annually), Clean Energy Resource Team Seed Grant of $10,000, bid advertisement for City Ponds dredging, contract with WHKS for sanitary sewer design ($154,850), and numerous city-owner contracts, revocable permits with Mayo Clinic and Sargent's Second Street, supplemental development agreement with Stonebrooke, sanitary sewer maintenance contract, property acquisition settlement agreements for Link BRT, reconstruction of 18th Ave SW, quit claim deed from Hy-Vee, appointments to Joint Airport Zoning Board, Federal Aviation Administration and MnDOT grants for airport runway reconstruction, option agreement with Great Planes Aviation, hangar purchase agreement, airport lease amendment, ARFF vehicle and equipment contracts, second amendment to Signature Flight Support lease, MnDOT maintenance and operations grant, GO Bond agreement, and Joint Powers Agreement for environmental review.
Public Comments & Testimony
- Molly Dennis (resident) spoke during the open comment period, criticizing the city for reducing public engagement by moving meeting locations (the September 8 meeting was at RPU instead of City Hall), limiting public comment to two minutes (subjectively enforced), moving meetings to 6 p.m., silencing public comment on social media, and holding closed-door meetings. She also raised concerns about the 311 system and requested follow-up on previous questions about wasteful spending.
- Senator Carla Nelson (Minnesota Senate) addressed the council, reporting on the legislative session: the state faced a $6 billion deficit but avoided drastic cuts to Local Government Aid (Rochester's LGA for 2025: $5,030,008; 2026: $5,034,737). She noted that the 2025 bonding bill did not include any of Rochester's priorities but expressed hope for the next session. She also provided a memo on local sales tax (LST) authorization, clarifying that the 2023 tax bill authorized up to $50M for an economic vitality fund, $50M for street reconstruction, $65M for a sports complex, and flood control, but noted that the first three projects did not meet statutory requirements and required a "notwithstanding" clause. She emphasized that local sales taxes must be regional in nature and used for capital projects.
Discussion Items
- 2026 Annual Action Plan – Community Development Block Grant Allocations (G.1): Brent Svenby (Community Development) presented the plan to open the public comment period (closes November 3, 2025). The city projects $826,000 in CDBG funds, including $101,400 for public service activities (six agencies recommended), $464,600 for housing rehab, $150,000 for administration, and $100,000 for infrastructure. The steering committee added three community members this year. Councilmember Keene noted a listing error (Jeremiah Project omitted). Councilmember Palmer questioned the smoke detector program and the selection of community members. The public hearing was opened and closed with no testimony; the comment period remains open.
- Final Plat – Stonebrooke of Rochester LLC (G.2): Desmond McGill presented the final plat for Stonebrooke Sixth – 62.5 acres, 69 residential lots (28 single-family, 41 townhomes), two common area lots, three outlots. Consistent with P2S plan and zoning. Approved by resolution 7-0.
- Final Plat – Noble Development LLC (G.3): Final plat for Highland Hills Townhomes Second – 3.63 acres, 20 townhome lots, one common area lot. Approved by resolution 7-0.
- 2026 Preliminary Tax Levy and Recommended Budget (H.1): City Administrator Alison Zelms presented the recommended budget. The preliminary levy is $118,284,623, a $6,639,481 (5.95%) increase from the previous year. The recommended operating and capital budget is $663,901,470 (including RPU). The public hearing for final adoption is set for December 1, 2025. Council discussion: Mayor Norton clarified that the 5.95% levy increase does not equate to a 5.95% tax increase for individual homeowners; property valuations and other factors also affect taxes. Councilmember Keene noted the tax base grew 2% from new properties and assessed values rose 4.5%, and that the city's net tax capacity rate is around 49%. Councilmember Palmer expressed disappointment with several expenditures (e.g., RP&T GO Microtransit at $232/ride, library costs, new positions) and stated he would not vote for the levy, preferring 4.8%. Council President Schubring praised the 5.9% levy as a reduction from the projected 10% and noted $4M in cuts. Councilmember Miller supported the budget, noting the city's responsible growth management. The motion passed 5-2 (Councilmembers Fredericks and Palmer voting no).
- Renewable Energy Power Purchase Agreement (H.2): Bill Budak (Director of Power Resources) presented a 22-megawatt wind energy purchase agreement with Restore Renewables (Adams Wind Project). The 25-year contract provides about 50,000 MWh/year (5% of RPU's energy need) and serves as a hedge against price volatility. The project is existing and repowered. Council discussion: Councilmember Keene clarified it's a purchase agreement (not ownership). Councilmember Miller emphasized it's a real investment in renewable energy, not just purchasing RECs. Councilmember Palmer questioned why the project wouldn't be bought by another party if not taken, and noted historical forecasting errors. The resolution passed 7-0.
- Designating Office of City Clerk to Administer Administrative Citations (F.7 / H.3): Pulled by Councilmember Wall. City Clerk Cartwright explained that the resolution allows the clerk's office to issue citations for license types already governed by ordinance (e.g., alcohol, gambling, sewer, dangerous dogs). The process is administrative, not criminal. Councilmember Wall moved to table the item until the city could seek feedback from affected licensees, citing confusion from two business owners. Councilmember Miller opposed tabling, suggesting direct inquiries would suffice. The motion to table passed 5-2 (Councilmembers Miller and Doring voting no). The item will be placed on the tabled items list.
Key Outcomes
- 2026 Preliminary Tax Levy and Budget: Certified at $118,284,623 (operating/capital budget $663,901,470). Public hearing December 1, 2025. (Passed 5-2)
- Renewable Energy PPA: Authorized the city to enter into a wind energy purchase agreement with Restore Renewables for the Adams Wind Project. (Passed 7-0)
- Administrative Citations (F.7): Tabled for further stakeholder engagement. (Passed 5-2)
- Public Hearing on CDBG 2026 Action Plan: Opened; comment period ends November 3, 2025.
- Final Plats: Stonebrooke Sixth and Highland Hills Townhomes Second approved.
- Consent Agenda: Approved en bloc (except F.7 and F.25).
- Ordinance First Reading: Annexation petition (Pulte Homes, 120 acres) introduced.
- Ordinance Second Reading: Administrative enforcement procedures ordinance adopted.
- Other Business: Council recessed to the Rochester Economic Development Authority meeting.
Meeting Transcript
Welcome. Please rise as you're able for the Pledge of Allegiance. And one nation under the interest. Thank you. And welcome to our uh Monday, September 22nd uh city council meeting. Uh we begin every city council meeting with our open comment period. This is a time uh where anybody has two minutes to speak for a total of 20 minutes. And uh I request that each speaker be concise to allow more people to speak during the designated time. Uh participants are also encouraged to uh limit comments generally to topics that are within uh the scope and jurisdiction of the city's uh ability to affect policy. Uh council members and staff do not respond directly to your comments during public comment, but instead will follow up as on any specific requests separately. If you have materials to share with the council, you may give them to the city clerk uh over there. Uh Clerk Queso, could you raise your hand? And uh she will distribute materials to the council. And uh I will also be keeping track of time through two methods. One is a stopwatch back there that's set currently for two minutes, and so you can you will be able to see that from the podium. And then there's also a stoplight there over by the mayor that will at I believe the one-minute mark will start to give you a yellow light. So with that, I will um go to our list, and we have uh Molly Dennis. Okay, um thank you so much. On August 18th, the National Civic League inquired about these uh civic engagement cards that you all got to decrease to help address the decreased public engagement at city council meetings. Here are the facts. September 8th, along with a the local news reporter, myself and half a dozen residents showed up at City Hall. We had done a prior Google search, and that is where the meeting was said to be, but in fact, it was here. It had been moved to RPU and thus silenced an incredible amount of voices at that this month's meeting. Uh also these constant changes in location disrupt public engagement, having only two short minutes, which are subjectively enforced, uh, if you look at the record, lead residents to believe that their voices do not matter. Moving the council meetings to 6 p.m., which is a proven dinner time, has also had a substantial substantial drop in public engagement. I was there for the vote and have seen it happen. Silence pub silencing public comment on all Rochester social media has proved to residents that Rochester, all of you do not care about their opinions. And having meetings behind closed doors erode public trust, and that transparency is trust. So I just asked that please do not falsely claim that our city or anyone on the dias here cares for residents, what residents think as your actions and your policy prove otherwise. And since I have just a moment of time, I would like to also address the 311 system that fails to respond to citizens' questions. So ask that President Schuebring if you could help enforce that your statement that uh staff or council will follow up. I would like staff and council to follow up on all the previous months of questions that I have had about potential wasteful spending here in Rochester that will impact their taxpayer dollars in the future. So I appreciate those uh two things being done. And I hope and just want to thank thank you for the very brief two minutes of time. Thank you, Miss Dennis. Uh uh Miss Dennis is the only person who signed up. Is there anyone else wishing to be heard during our open comment period? Anyone else wishing to be heard during our open comment period? Seeing none, I will close open comment period and ask Clerk Caseel to please call the roll. Good evening. Councilmember Keene. Here. Councilmember Miller. Here. Councilmember Wall. Here. Councilmember Fredericks. Councilmember Palmer. Here. Councilmember Doring.
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