OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Rochester City Council Study Session: Financial Policies, Stormwater Credits, and Path Gap Analysis – May 27, 2026

City CouncilWednesday, May 27, 2026
BodyRochester, Minnesota
SessionCity Council
DateWednesday, May 27, 2026
StatusFILED
Video Record
0:00 / 3:09:06

Transcript — Verbatim
1:56

And then we have a council initiated action for disconnect connected parcel trail gap.

2:04

Off with Brian or Brian on financial financial policies.

2:09

Sure.

2:09

Thank you, Council President Shouldn't Council members.

2:12

Mayor, Mr.

2:13

Zelda.

2:14

So one of the items I was tasked with uh shortly after I got here too was to take a look at and revise the financial financial policies that the city has.

2:24

So it's going to do it so first of all, you have to find out what the Cody drawer.

2:39

Um make sure that they work for them as well too to see what else needs to be updated.

2:45

So uh did a lot of that and these uh financial policies.

2:49

I've done this for two other communities before this, and it seems to be kind of something again to bring everything back in so you're dealing with uh document isn't itself as you can see before yourself.

2:59

We have twenty-two policies before us, I'll probably just be talking about uh the ones that you see in the slide presentation or two discussions.

3:09

Uh document uh in the past and about people at the back before the council agenda on annual basis.

3:18

Uh so numbers can take a look at it, new console members have a chance to take a look at it.

3:22

Um also rating agency authors like the year the word yes that's been approved and reviewed in the last year as well, too.

3:30

So one gets approved or reviewed it all.

3:33

So it's just uh easier way to go about doing that as well.

3:36

So uh so with that I will quickly move these uh both that purpose of the purpose of the financial policies.

3:51

Uh uh taking a look at this one for the financial policies.

3:54

This was this was the first one up there was an attempt to heard.

4:00

Um study or a plan or sustainability plan or something like that comes before the city council.

4:07

Um what it states in here is that the plan should be adopted and it would be adopted by so if they're asking for an action to be done, we're recommending that.

4:30

Uh uh that way if there's a word or uh something that needs to also approve it, they can adopt it, the council can adopt it.

4:38

The latter part in it, it doesn't matter.

4:58

And then the second part in here.

5:00

Uh uh, and then the second part in here is like cursing the second part in here then relates to the city understands that the adopted document usually using is used for informational resources that provide direction without creating any future future responsibility or obligation to the council to the council's part.

5:18

Um the approach preserves the council's discretion, clarifies that the sentence is not equate to an endorsement for specific financial commitment.

5:27

I know that's where a lot of the discussion was for the fact that you see these plans that might be many pages uh might not have dollar multiple.

5:34

That's true.

5:34

So the dollars usually come later.

5:36

So with that, if you again like the plan, also the plan adopt the plan, and usually the follow-up yeah, so this states that you know there will be, or this doesn't hide the council down just because the plan has the same speed as a same.

5:56

The author with the plan we shouldn't think they're brought back for for approval to start.

6:03

So questions questions on that one show.

6:08

I think just again kind of clarifying what we incurred.

6:14

Uh uh the seventh paragraph down there simply simply states that the uh uh the city departments and entities that report to the cities that report on the city's financial statements show operate using our shared resource planning enterprise resource planning and the charter of accounts, and that's what we're working on right now.

6:33

Uh the uh the ERP and the charter accounts is all part of the project that you guys approve for dollars right now, too.

6:40

So this is stating that uh uh in the budget process that that's what we were describing maintained going forward, that we have an infrared charter for policy and shall operate under one year, I mean you're the items listed, maybe there are two uh possibilities for that as well.

6:55

So I've got a question, Brian.

6:57

So since uh I think you kind of went through a semantic exercise with adopted uh is the word shall in there in there meaning meaning that that you want them to do it, but they they don't have to do it, do it.

7:15

So it's if it's an action, so if uh staff staff is asking for action to be taken, I guess I guess it would be preferred or shall be adopted would be the option that's we're seeking the calls that actually set up received or something else.

7:39

I guess that's really what I'm asking.

7:42

It's more uh are they uh uh does every does everyone have to comply?

7:50

That's what we have.

7:52

Okay, okay.

7:55

So I'm kind of in the same vein.

7:57

I was thinking like sometimes uh a department or individual will come forward with the ideas about something we do.

8:05

Um the council you know accepts that now they're gonna use the term adopts it, but but may not it may not be the thing that they want to do ultimately because there may be better other ideas that come over the board, and they're not they're not obligating funding for it according to what you said.

8:22

So I'm I'm struggling with um some plans that we had a couple years ago.

8:28

That idea came to the city council, the city council listened to it and said that's interesting, yeah.

8:33

You know, and then and then is that you know that can be seen as an endorsement of that plan forever, or but there's no financial obligation that was given, it was just accepting um concept.

8:47

And so and so what if something better or a developer comes between now and then?

8:52

And we've had this issue come up one time this last year where so we already have a plan.

8:57

Well, the plan was kind of a pie in the sky idea, it wasn't really a great plan.

9:02

So adopting to me, then is that obligating us to farm or not?

9:07

And how would you change it for instance?

9:09

Um administrators.

9:12

I think I think the intent here is that to have a specific process and order of operations, or if it's got a board, it comes to a board and the council and it should be adopted.

9:24

But the rest of the language is that it doesn't obligate to you to anything because there would be a future action, a budget I think sort of financial resource, a specific CIP project, something of that nature, that or maybe even adopting a policy that's an idea in the plan that's that still needs to come forward to either a board or the city council thing.

9:46

That is the technically that wouldn't come to you, but I'm sure there are.

9:49

Um so I think the intent here is to show this is what we would intend going forward that it would go to the board, it would come to the city council.

Discussion Breakdown — Share of Meeting
Engineering And Infrastructure█████████████████████████████29%
Water And Wastewater Management████████████████████████████28%
Fiscal Sustainability██████████████████18%
Environmental Protection███████7%
Active Transportation███████7%
Public Engagement████4%
Public Safety████4%
Budget Equity Analysis1%
Disability Rights1%
Summary of Proceedings

Rochester City Council Study Session: Financial Policies, Stormwater Credits, and Path Gap Analysis – May 27, 2026

The Rochester City Council held a study session on May 27, 2026, to discuss a comprehensive update of the city's financial policies, a proposed market-based stormwater quality credit transfer program, and a council-initiated analysis of gaps in the city's trail and sidewalk network. Staff presented proposals and council members offered feedback, with no formal votes taken at the study session.

Discussion Items

  • Financial Policies Update: Finance Director Brian presented a comprehensive update of 22 city financial policies, covering areas such as purchasing thresholds, pilot payments, insurance requirements, and enterprise shared services. Key proposals included raising the purchasing threshold for council approval from $50,000 to $175,000 to match state statute, adopting a new enterprise shared services policy to improve efficiency across departments, and standardizing pilot payments from the five enterprise funds (electric, water, wastewater, stormwater, parking) at 6.5% of operating revenue, phased in over time. Council members debated the language regarding "adoption" of plans and the scope of shared services, with concerns raised about potential overreach into operational management and the impact of consistent pilot rates on ratepayers, especially for the electric utility.

  • Stormwater Quality Credit Transfer Program: Aaron and Tyler from public works presented a proposal to create a market-based program allowing transfer of off-site stormwater treatment credits between property owners. The program is designed to address challenges with infill development where on-site treatment is infeasible, while also enabling the city to generate credits from projects like a planned retrofit of 600 acres of drainage north of 37th Street. Transfer ratios would vary from 1.2:1 to 1.5:1 based on proximity, with a portion set aside for environmental benefit. Council members asked about capacity, cost (estimated at $10,000 per acre-foot for a hypothetical project), equity, and the need for transparent tracking and reporting. Support was expressed for moving forward with a pilot phase, with a focus on safety and population-based weighting for future projects.

  • Connected Parcel Trail Gap Analysis: Dylan and Tyler presented a map-based analysis identifying gaps in the city's pedestrian and bicycle network, using six equally weighted criteria: access to key destinations, safety needs (from the ROCOG safety action plan), walkability scores, proximity to transit, vacant development-ready land, and gap length. The analysis highlighted areas of high disconnection in Southeast Rochester (e.g., Marion Road), Southwest, and Northeast. Council members discussed weighting safety and population density more heavily, incorporating school proximity, and addressing jurisdictional challenges with county roads. Funding considerations included grant opportunities, potential modifications to the sidewalk improvement district program, and trade-offs with maintaining existing infrastructure. The GIS team developed an interactive dashboard for further exploration.

Key Outcomes

  • No formal votes were taken; the session was for discussion and feedback.
  • Staff will consider council input on financial policies and bring back refined proposals for future action.
  • Council generally supported moving forward with the stormwater credit transfer program; staff will return with a draft policy and ordinance updates, with the 37th Street project as a potential pilot, expected to come back for bid authorization in August/September 2026.
  • For the trail gap analysis, staff will explore adding population density and safety weighting, and will bring back a more detailed assessment of priority areas, including an update to the pavement management program that incorporates paths.
  • Next study session is scheduled for June 8, 2026, to include updates on the fire strategic plan, Mayo Field discussion, and a 2026 legislative session update.

Meeting Transcript

And then we have a council initiated action for disconnect connected parcel trail gap. Off with Brian or Brian on financial financial policies. Sure. Thank you, Council President Shouldn't Council members. Mayor, Mr. Zelda. So one of the items I was tasked with uh shortly after I got here too was to take a look at and revise the financial financial policies that the city has. So it's going to do it so first of all, you have to find out what the Cody drawer. Um make sure that they work for them as well too to see what else needs to be updated. So uh did a lot of that and these uh financial policies. I've done this for two other communities before this, and it seems to be kind of something again to bring everything back in so you're dealing with uh document isn't itself as you can see before yourself. We have twenty-two policies before us, I'll probably just be talking about uh the ones that you see in the slide presentation or two discussions. Uh document uh in the past and about people at the back before the council agenda on annual basis. Uh so numbers can take a look at it, new console members have a chance to take a look at it. Um also rating agency authors like the year the word yes that's been approved and reviewed in the last year as well, too. So one gets approved or reviewed it all. So it's just uh easier way to go about doing that as well. So uh so with that I will quickly move these uh both that purpose of the purpose of the financial policies. Uh uh taking a look at this one for the financial policies. This was this was the first one up there was an attempt to heard. Um study or a plan or sustainability plan or something like that comes before the city council. Um what it states in here is that the plan should be adopted and it would be adopted by so if they're asking for an action to be done, we're recommending that. Uh uh that way if there's a word or uh something that needs to also approve it, they can adopt it, the council can adopt it. The latter part in it, it doesn't matter. And then the second part in here. Uh uh, and then the second part in here is like cursing the second part in here then relates to the city understands that the adopted document usually using is used for informational resources that provide direction without creating any future future responsibility or obligation to the council to the council's part. Um the approach preserves the council's discretion, clarifies that the sentence is not equate to an endorsement for specific financial commitment. I know that's where a lot of the discussion was for the fact that you see these plans that might be many pages uh might not have dollar multiple. That's true. So the dollars usually come later. So with that, if you again like the plan, also the plan adopt the plan, and usually the follow-up yeah, so this states that you know there will be, or this doesn't hide the council down just because the plan has the same speed as a same. The author with the plan we shouldn't think they're brought back for for approval to start. So questions questions on that one show. I think just again kind of clarifying what we incurred. Uh uh the seventh paragraph down there simply simply states that the uh uh the city departments and entities that report to the cities that report on the city's financial statements show operate using our shared resource planning enterprise resource planning and the charter of accounts, and that's what we're working on right now. Uh the uh the ERP and the charter accounts is all part of the project that you guys approve for dollars right now, too. So this is stating that uh uh in the budget process that that's what we were describing maintained going forward, that we have an infrared charter for policy and shall operate under one year, I mean you're the items listed, maybe there are two uh possibilities for that as well. So I've got a question, Brian. So since uh I think you kind of went through a semantic exercise with adopted uh is the word shall in there in there meaning meaning that that you want them to do it, but they they don't have to do it, do it. So it's if it's an action, so if uh staff staff is asking for action to be taken, I guess I guess it would be preferred or shall be adopted would be the option that's we're seeking the calls that actually set up received or something else. I guess that's really what I'm asking. It's more uh are they uh uh does every does everyone have to comply? That's what we have. Okay, okay. So I'm kind of in the same vein. I was thinking like sometimes uh a department or individual will come forward with the ideas about something we do. Um the council you know accepts that now they're gonna use the term adopts it, but but may not it may not be the thing that they want to do ultimately because there may be better other ideas that come over the board, and they're not they're not obligating funding for it according to what you said. So I'm I'm struggling with um some plans that we had a couple years ago. That idea came to the city council, the city council listened to it and said that's interesting, yeah. You know, and then and then is that you know that can be seen as an endorsement of that plan forever, or but there's no financial obligation that was given, it was just accepting um concept.

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