Anoka City Council

May 27, 2025 (Worksession) Page 1 of 11 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM MAY 27, 2025 1. CALL TO ORDER Mayor Skogquist called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Skogquist, Councilmembers Campbell, Rostad (arrived at 5:13 p.m.), and Scott. Staff present: City Manager Greg Lee; Police Chief Andy Youngquist; Public Works Director Mark Anderson; Public Services Administrator Lisa LaCasse; Assistant City Manager Amy Oehlers; Electric Utility Director Del Vancura; Senior City Planner Clark Palmer; Finance Director Brenda Springer; Communications Manager Pam Bowman; Golf Course Superintendent Mike Brual; Greenhaven Event Center Assistant Management/Golf Professional Ryan Wagner; Golf Maintenance Coordinator/Assistant Golf Superintendent Brandon Howard; City Attorney Scott Baumgartner. Absent: Councilmember Weaver. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Presentation: Financial Management Plan. Finance Director Brenda Springer shared a background report stating that in 2024, the City Council authorized staff to hire Ehlers Public Finance Advisors to do a comprehensive Financial Management Plan for the City of Anoka. The Financial Management Plan is a multi-year fiscal plan for all tax-supported funds to ensure all capital, maintenance, and staffing needs are met and there are sustainable funding sources. Since 2024, staff have been working with Ehlers by looking closely at all our capital improvement and equipment needs for the next 10 years. This process will integrate budget, tax policy, and capital plans. Stacie Kvilvang, Ehlers Public Finance Advisors, thanked the Council for the opportunity to share the proposed financial plan that included a City funding overview, assumptions and other factors, review of various funds, findings, Council direction and consensus, and next steps. She said direction is needed on the parking fund, proposed tax levy increases to address capital needs and positive fund balance needs, fund balance goals, and franchise fees to offset the tax levy. She reviewed the City’s different fund types that included governmental funds, proprietary funds, enterprise funds, and internal funds. She reviewed general fund revenue sources, which 55% come from property taxes, then spoke about May 27, 2025 (Worksession) Page 2 of 11 expenditures by function and explained what a financial management plan does to assure all the City’s needs are met, manage expectations, and help maintain assets and fund balances. She referred to the need to outline policy issues, which then allows the Council to focus on the big picture and how this would provide a plan for large items when they arise, and provide transparency for the public. She reviewed the City’s 30% fund balance policy, which is a little lower than that right now, and how the revenue will hopefully help; otherwise, there may be some refunding of temporary tax abatement bonds. She outlined assumptions and other factors, such as the golf enterprise and planned increases in revenues and expenditures. She said the CIP is approximately $54 million over the next five years and that the City will need to bond approximately $37 million, but that after 2030, there won’t be a bond anymore, with the exception of larger bonding needs for the liquor stores and parking ramp. Ms. Kvilvang reviewed key takeaways that included the need to issue debt to meet capital needs and reduce property tax impacts, franchise fees as a possible funding source, and a property tax levy greater than last year’s increase of 10.17%. She spoke about the impact on a median-valued home of approximately $182/year then spoke about the park capital projects fund of $11.275 million and reviewed the street renewal fund (SRF) of $16.765 million in capital projects, building improvement fund of $9.117 million, golf course fund of $2.57 million in capital projects, parking special revenue fund, liquor enterprise fund, and cannabis operations. She reviewed the City’s general fund balance policy that included maintaining the policy, incorporating the recommended fund balance goals, adjusting certain debt service levies, and determining necessary rate increases and timing and terms for tax abatement bonds refunding. Councilmember Scott said he liked the plan because when we need the item, we’ll be ready, and sometimes items can be pushed out, so this way we start reserving funds early. Ms. Kvilvang spoke about the need for an additional $81,000 in 2026 to fund parking. Mayor Skogquist asked about equipment in the CIP for the parking ramp for automated payment options. Public Works Director Mark Anderson said this was planned for installation in 2025. Ms. Springer explained the pay-to-park wasn’t going to cost anything, as the user will pay and the City will get a portion of what is collected, but the concern was how to enforce it. Chief Andy Youngquist agreed that the program is not an option for automation because of the need to enforce. City Manager Greg Lee said the vendor ignored their requests regarding enforcement, and the option for an honor system likely won’t work, so staff needs to regroup. May 27, 2025 (Worksession) Page 3 of 11 Mayor Skogquist asked if the Council still wants to pursue a pay-to-park option. Councilmember Campbell said Stillwater and other cities have paid parking and would support it as long as the fees are what the market can bear. Councilmember Rostad agreed, adding that while it creates an enforcement element and extra staff, there are Anoka County employees who park in the ramp all day, and there is an opportunity to capture revenue. Councilmember Scott agreed, stating it is a convenience we pay for and are subsidizing, and a modest fee to supplement that cost is acceptable, adding that those who want to pay the fee can park on the street. Mayor Skogquist agreed to support the concept, but said enforcement is key, and how do we do that and cover expenses? Mr. Anderson said the pay-to-park could be implemented in 60-90 days, but without enforcement, the plan likely won’t work. Councilmember Scott noted that Stillwater is $1/hour and while nominal, we could get that amount in Anoka. Mr. Lee suggested working with a non-profit group such as the Boy Scouts to collect a fee and then get a portion of the revenue then shared preliminary results of the parking survey staff conducted that shows many business owners want to see the parking ordinance be repealed and that the next step will be for the Parking Advisory Board (PAB) to review and make a recommendation. Mayor Skogquist said parking is expensive, and it is easy to want more flexibility when you are not paying for it. He said the City has been generous with parking for a very long time, but it costs money, and that this needs to be reviewed. Mr. Anderon said the vendor is Park Mobile Systems, which operates well, except for a method of enforcement. Chief Andy Youngquist said officers issue citations all the time, but this vendor didn’t have a way to identify those who parked, but the staff can work with the vendor on the enforcement element. A discussion was held on parking fines and methods in other areas. Ms. Kvilvang spoke about the need to address the negative fund balance and increase fees by 25% in 2026-2027, then spoke about the proposed fund balance goals. Councilmember Scott said he would be in support of increasing fees to provide more opportunities, including possible grants, and not strapping future councils with having to address this. May 27, 2025 (Worksession) Page 4 of 11 Discussion was held on the electric utility fund and the policy that affects that balance, then spoke about the franchise fee to offset the tax levy of approximately $627,000 that should be increased and passed on to the electric end users. Mayor Skogquist said the tradeoff is the number of exempt properties, such as places of worship and other similar properties, but said it is worth a discussion. Ms. Kvilvang spoke about the master fee schedule that could include an inflator that increases 3% a year, including franchise fees. A discussion was held about the process for holding a second reading of the ordinance that is intended to sunset in five years, to move it to more of an annual review through the fee schedule before second reading. Mr. Lee recommended continuing with the second reading and then including these options as part of budget discussions. Ed Evans, Anoka, referred to the sales tax on franchise fees and how it was included on the electric bill, and if included instead of taxes, would it be deductible? Ms. Kvilvang said most take the standardized reduction, which has changed in the last five years. Ms. Kvilvang said Ehlers will work with staff to refine the proposed plan and return for further discussion. Ms. Springer said the 2026 CIP and ERP plans will be presented at the June worksession. Joelle Alvord, Anoka, suggested that staff look at opportunities to place increased fees on tourists of the City instead of only residents, such as through hotels, restaurants, and parking meters. 3.2 Discussion: Recycling Contract Expiration. Communications and Recycling Manager Pam Bowman shared a background report stating that at the November 2024 election, the ballot question “Should an Organized Residential Solid Waste, Recycling and Yard waste Collection system be implemented in the City of Anoka?” was voted upon by citizens. The majority voted against an organized garbage, recycling, and yard waste hauling system. The City of Anoka has had an organized recycling service for decades and currently has a contract with ACE Solid Waste, Inc. to service recycling for both single-family and multi-family households. The contract expires on March 31, 2026; however, it allows for two consecutive one-year extensions. The WRRB would like to discuss the option to extend the contract for two consecutive one- year extensions. City Attorney Scott Baumgartner explained the ballot question that was approved and the process of the Charter, and how yard waste could be included, but how May 27, 2025 (Worksession) Page 5 of 11 that was not bound by the ballot question and was more of an advisory opinion of the voters, and not bound like the organized haulers. Councilmember Rostad clarified that the City is bound by the organized hauling for solid waste, but yard or recycling is the Council’s choice, and understood the public’s direction on organized hauling overall. She asked if the City is required to provide an opportunity to recycle. Councilmember Scott said he would abide by the voters, but this extension does not change the contract, so it would be great to bring this back to the WRRB to negotiate, as it is not a new contract overall. Council consensus was to have the item brought to the WRRB to negotiate. Mr. Lee shared that the contract has increased 3% per year over time. 3.3 Discussion: Proposed Changes to the Code of Ethics Policy. Assistant City Manager Amy Oehlers shared a background report stating that at the meeting on January 6, 2025, the Council voted for staff to work with Councilmember Rostad on reviewing and possibly updating our current Code of Ethics Policy. The current policy has not been reviewed since August 2008. At your March worksession, Council reviewed the draft and requested that staff send out the proposed draft to all City Board/Commission members, to the League of Minnesota Cities (LMC), and to Attorney Scott Lepak. She said the Council should discuss the draft policy and provide direction on whether the draft policy should be formalized and placed on a future agenda for adoption. Councilmember Campbell said there was great input received from the City Attorney and Commissioners, and suggested reviewing it further for changes through a working group. Councilmember Rostad agreed, stating the intent was to receive feedback, which has occurred, and that she liked the idea of a working group to create a more final draft. She said the LMC doesn’t issue opinions but advises and shared some slides from a presentation that staff viewed at the LMC that included respectful meetings, the why behind any action, functions of Charters, the role of staff and Council, and the specific areas each should remain in. She reviewed the information provided by the LMC and the need for clear guardrails during conversations, stating everyone is excited and engaged about Anoka and wants to see it thrive and grow, but we need to know how to work together and be accountable. She liked the recommendation for a code of conduct, statement of values, rules of order, and Council bylaws, then shared that she didn’t want to see Anoka struggle like other cities have in the past. May 27, 2025 (Worksession) Page 6 of 11 Mr. Lee said the primary training they viewed was around the code of ethics and how that helps towards efficient meetings. Councilmember Rostad agreed that cities need to have outlined roles and responsibilities for both councils and staff. Councilmember Campbell said he liked the commissioner's feedback and pointed out how conflicts can have legal consequences, and the other is more around conduct and how we should respond to one another, and felt that it made sense to separate those two elements. He noted some cities in Minnesota have ethics boards that implement the ethical side of behavior, such as Roseville. Economic Development Commissioner Lee asked if everyone will have to sign this document or will current members will be grandfathered in. Mayor Skogquist said the intent was that the policy would impact everyone and would be in place regardless if signed. Commissioner Lee spoke about what constitutes a violation, enforcement and censorship and how some goes to free speech then noted as a banker and a potential Council candidate again would he be accused of not disclosing something should he make connections with people in the community through his role as a Commissioner because sometimes that can’t be disclosed as part of his business relationship. Mayor Skogquist said that would be a good question to have on how boards function, adding there are differences between disclosure and abstaining. Dr. Evans commented on employment and serving on a board, and a potential conflict of interest with NVent, which is working with Utility Director Del Vancura. Mr. Baumgartner said it is difficult to say because all are fact-specific, and if boards/commissions approach potential conflicts similar to the Council with transparency, that’s the best way. He noted it is difficult in a small community because people who work here also want to serve here, so disclosing is best. Commissioner Bonthuis spoke about the importance of the mission statements and how no one had to sign the document, but if the Council does move forward, he suggests including an acknowledgement that the policy has been read. Councilmember Rostad commented that the feedback included goals, then reviewed feedback from Ms. Gilbert that said, as the policy stands now, it looks like members can opt out, and that this should not be allowed, as it undermines the entire policy. Commissioner Steel said behavior and interactions outside of meetings are important, as well as ethics and conduct, and should include social media. May 27, 2025 (Worksession) Page 7 of 11 Dr. Evans commented about someone going onto a person’s property and how the code of ethics is a set of rules that govern conduct and are two separate items, and the need for a set of principles of conduct that guide decisions and behavior. He shared frustration about the change in operations in that everything has to go through the City Manager instead of the appropriate staff member first, which is not good. Councilmember Rostad clarified that all members can still contact staff, as she doesn’t want to be overly restrictive or broad, but that she was referring more to micromanagement potential that can adversely impact staff, police specifically. Chief Youngquist explained he usually directs people to call 911 instead of him or a captain, as this is the best channel for direct response. Mayor Skogquist said boards should be able to function as they need to function, but the issue was overly disrupting operations, and that we’re just trying to formalize a process that is based on the Charter. Ms. Oehlers noted the draft policy refers to communications between Council and staff, and working with supervisors or liaisons can make that clearer. Councilmember Scott thanked everyone for the feedback and echoed Councilmember Campbell’s comments about creating a working group to make the document less wordy and duplicative, and then follow the working group’s recommendation. Mr. Baumgartner said this can be difficult, as some may not want to sign, but noted the City can establish its goals and values regardless of whether a policy is signed, but noted if someone doesn’t agree, then perhaps that person is not in the right position to serve. He said this still allows for freedom of speech and cautions against micromanaging while still supporting the Council’s overall goals. Councilmember Scott said we want to have constructive feedback as lively debate is healthy, then spoke about the importance of boards/commissions and our need for their opinion, as it’s their role. Mr. Baumgartner said the importance is how you share opinions in a constructive way, and the distinction between conduct and ethics. Council consensus was to create a working group that includes Councilmember Rostad, Ms. Oehlers, Mr. Lee, and Mr. Baumgartner to incorporate this feedback, remove duplicative portions, reduce length where possible, and review for overlap and possible split into two parts, one for Council and another for boards and commissions. 3.4 Discussion: City Charter Section 2.05; Appointment Process to Fill Council Vacancies. May 27, 2025 (Worksession) Page 8 of 11 Ms. Oehlers shared a background report stating that at their meeting on October 13, 2021, the Charter Commission made a recommendation to be presented to the City Council regarding amending the City Charter, Section 2.05 Vacancies in Elected Offices. The City Council held a public hearing on December 6, 2021, regarding this and held the first reading of an ordinance to amend the Charter. The ordinance did not receive a second to the motion, so the ordinance did not pass the first reading. The current language in the City Charter is: Section 2.05 Vacancies in Elected Offices. A vacancy in an elected office shall be deemed to exist in case of the failure of any person elected thereto to qualify on or before the date of the second regular meeting of the Council in January following his/her election, or because of his/her death, resignation, removal from office, for malfeasance, or nonfeasance, removal from the City, conviction of a felony before or after his/her qualification, or for reasons prescribed by State Law. In each such case, the Council shall, by Resolution, declare a vacancy to exist and shall forthwith appoint an eligible person to fill the vacated seat. At the next regular City election, the vacated seat shall be placed upon the ballot to fill the vacated office for the remainder of its original term. The appointed person shall serve until the person elected qualifies for such office. If the vacated office would have normally been filled at the next regular City election, the appointed person shall serve until the newly elected individual’s term commences in January following the election and they have qualified for such office. If the Council is unable to agree on an appointment to fill the vacancy within thirty (30) days from the occurrence of the fact giving rise to the vacancy, the Mayor shall appoint a person to fill the vacancy. She reviewed how the Charter Commission may propose amendments: petition by residents – election; amendment by ordinance upon recommendation of the Charter Commission; or the Council may propose amendments to the voters by ordinance, but it must first be presented to the Charter Commission. Councilmember Scott agreed it would be good to have a better process, as it is valuable for our residents to participate to the fullest extent they can, and suggested the Charter Commission review to remove vague language and address specific complaints on how to appoint or fill a vacancy. Councilmember Rostad agreed that the Charter Commission should review this first, as there are new members who may have new ideas. Mayor Skogquist said the current process isn’t good and has been problematic, and felt that elections should happen instead of appointments, and suggested the Charter Commission meet sooner than their annual meeting in November to review this topic. Mr. Baumgartner noted there is a base to start from with the failed amendment that could help move the process along. May 27, 2025 (Worksession) Page 9 of 11 Commissioner Steel asked if there’s a State law regarding this and the role of the Mayor. Mayor Skogquist said it depended on whether a city is a Charter or Statutory city. 3.5 Discussion: Review of City Attorney Contract. Ms. Oehlers shared a background report stating that a draft City Attorney contract was developed by staff with input from City Councilmembers and Attorney Scott Lepak. The final draft was sent to Scott Baumgartner/BBG for their review and comments. She reviewed the draft contract returned to the City with proposed revisions from Scott Baumgartner/BBG and included all of the comments submitted by City Councilmembers and Attorney Scott Lepak. Councilmember Campbell said he liked the change to include a fee increase to be based on COLA for non-union staff seems fair. Mr. Baumgartner noted this has been their practice in the past, but has been added to the proposed contract for clarity. Mayor Skogquist spoke about the language for clarity regarding conflicts of interest, scope of service, and how work is assigned, and the need to ensure we are being accountable to the taxpayers, and felt the contract needed more negotiation around those elements. He said that while the contract was close, it was not complete and suggested a working group to finalize the contract. Mr. Baumgartner noted his comments around conflict of interest were only to ensure there was nothing in conflict with what he needs to follow by law for his license, adding he always tries to be as ethical as he can, but that it may be difficult to do both. Ms. Oehlers said he liked the idea of a working group to facilitate the discussions better. Dr. Evans asked if there was a discussion about measurements and metrics and results of a particular item, and if the City is sued and is not favorable for the City, but not the city attorney’s fault, will they be judged because he acted under the Council’s direction and not his recommendation. Mayor Skogquist noted that currently Council isn’t doing the performance reviews and that they are mostly done by staff, and suggested that change as well to include review from the Council. Councilmember Rostad agreed, stating it was important to know what the attorney is being evaluated against and should be clear. Ms. Alvord said it didn’t make sense to have a performance review on someone who doesn’t have a contract in place, then asked if the contract is for any future attorney or this one in particular. May 27, 2025 (Worksession) Page 10 of 11 Mayor Skogquist said this would be a one-year contract with an auto-renewal for this contract today for this specific firm. Mr. Lee suggested the end of June as a deadline due to the timeframe, adding that once complete, renewals should be easier in the future and that this timeframe allows for an RFP process during the last six months of the contract, should that be needed. Council consensus was to create a working group with City Manager, Greg Lee, Assistant City Manager, Mayor Skogquist, Councilmember Scott, Attorney Scott Lepak and Attorney Scott Baumgartner, to finalize the draft contract. Mr. Baumgartner shared that he understood if the working group didn’t want him at the table during their review, if that was more comfortable for them, but also felt that sometimes questions can be answered more easily in person. He also offered to be available should Mr. Lepak have a question and would work with the staff on that communication if needed. Dr. Evans made comments about charging the City for the negotiation process and the need to be fiscally responsible to the taxpayers. 4. OTHER BUSINESS Utility Director Del Vancura shared about a recent phishing attempt and cautioned everyone to be aware. Councilmember Scott shared about the recent adoption of their daughter and their excitement to grow their family to three children. Mayor Skogquist said he may be 30 minutes late to the June 2 meeting and requested that the closed session item be moved to after the regular meeting so he could attend. Mr. Lee shared that Anoka County is still moving forward with the parking ramp and will be meeting on June 4, and that staff will likely request Council direction at the June 2 meeting. 5. ADJOURNMENT Motion by Councilmember Scott, seconded by Councilmember Rostad, to adjourn the Worksession at 7:27 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: May 27, 2025 (Worksession) Page 11 of 11 Amy T. Oehlers, City Clerk