Empire City Council

CITY OF EMPIRE Empire City Council Meeting Minutes (Work Session) June 30, 2026, 5:30 PM, Empire City Hall The special work session of the Empire City Council was called to order by Mayor Melanie Lee at 5:30 PM. Present were: Council Members: Eric Hanson; Danny Rubio; Marla Vagts; Mark Page. Also present were; Brian Hilgardner, Consulting Engineer with Bolton & Menk; Jerod Waltman, Public Works Supervisor; Charles Seipel-Teng, Clerk-Administrator. Charles Seipel-Teng highlighted proposed general fund operating revenue and expenditure items. The City is applying for a grant from the Met Council to assist with expenses related to the development of the 2050 Comprehensive Plan. Half of the grant proceeds should be received in 2027. Changes to general fund operating expenditures include starting work on the 2050 Comprehensive Plan, a decrease in the annual fire contract with funding for a proposed share of additional full-time staff, and wage increases based on 3% COLA and guidance from the compensation plan. Staff included an increase in wages for parks to include the possibility of hiring part-time summer help. Proposed Capital Outlay Expenditures include the trade-in of the 2012 Freightliner Plow Truck (Streets), the purchase of a new Trench Vacuum $40,000 (half streets/half sewer), the removal of the old playground and installation of a natural play area at Empire River Preserve Park (Parks), Trail Repair according to the trail replacement plan that was developed in 2026 (Parks), a new server at City Hall (Admin), and Security and Fire Upgrades at the Public Works Building (Buildings). The proposed trail repair includes repairing the trail at 205th Street that the City of Farmington would also like to use. The price of the trail repair will be outlined in a proposed joint maintenance agreement with the City of Farmington. Staff will work to seek input on the proposed natural playground equipment at Empire River Preserve from the Park & Rec. Commission. For the 2027 Budget, it is anticipated that the city will have no funds for the purchase of investments in General Capital Outlay or in the Building Fund. Revenue for the Enterprise Fund projects and increase for water and sewer charges based on recommendations from the City’s Financial Management Plan. 2027 will be a big year for water fund projects including the rehabilitation and painting of the existing water tower for $650,000 and the issuance of revenue bonds in the amount of $8,550,000 for design, engineering, and construction of the proposed north end water tower. Proposed expenses will exceed revenue and therefore it is anticipated that no funds will be available for the purchase of investments. Bond payments for the new water tower are anticipated to be paid from enterprise fund proceeds and not rely on the tax levy. Seipel-Teng noted that a proposed residential development south of 205th Street needs to continue to be evaluated as it will likely need to tie into existing city infrastructure that has aged, including the lift station as noted above. In addition to the lift station, the development will likely need to tie into existing watermains and access the existing street. The existing watermains in the neighborhood may not have the capacity or be in condition to accept new development. This may require an unbudgeted project consisting of the replacement of watermains and street. This project will need to be closely evaluated for timing and infrastructure needs and costs responsibilities between the developer and the City will be outlined in the development agreement. In the current draft of the budget, the proposed tax levy, for payable 2027 real estate taxes, calls for an increase of 13.34%; however, when projected growth of the City’s tax capacity is taken into consideration (an anticipated increase of 6.45% from 2026 to 2027), the result is an estimated net 6.89% increase in the tax levy burden for City properties. Staff will work to provide more information on a breakdown on what is included in the professional services expenditure item; verity if revenue for building inspector should be increased; a list of existing contracts and when they expire, including the contract for IT services; a quote and alternative options for the proposed new server at City Hall; check with the City of Apple Valley to determine how solar streetlights on 140th were installed. Later in July, staff should have more information on the proposed water interconnect with the City of Farmington and proposed rates for the City’s health insurance plan. It was the consensus of the City Council that an additional budget work session should be held in early August to review updates to the proposed budget. The City Council Work Sesson ended at 7:30 PM. ____________________________________ Melanie Lee, Mayor ____________________________________ Charles Seipel-Teng, Clerk - Administrator