City Council Workshop
Regular MeetingOakdale, MN · August 27, 2024
Minutes
WORKSHOP MINUTES
OAKDALE CITY COUNCIL
AUGUST 27, 2024
The City Council held a workshop on Tuesday, August 27, 2024 at Oakdale City Hall, 1584
Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM.
Present: Mayor Kevin Zabel
Council Members: Noah Her
Jake Ingebrigtson
Andy Morcomb
Susan Willenbring
City Staff Members: Christina Volkers, City Administrator
Sara Ludwig, City Clerk
Brian Bachmeier, Consulting City Engineer
Andy Gitzlaff, Community Development Director
Melanie Lee, Human Resources Director
Luke McClanahan, City Planner
Nick Newton, Police Chief
Kyle Stasica, Finance Director
Kevin Wold, Fire Chief
Others Present: Juan Santos Esquivel, Guest (Council Candidate)
WATER TOWER 3 RECONDITIONING
City Administrator Chris Volkers stated that the consensus for the water tower color is white.
Consulting City Engineer Brian Bachmeier asked for clarification on the specific shade of
white. It was suggested that possibly the white shade of the Woodbury, Minnesota water tower
could be used.
Ms. Volkers continued that Council should determine the design for this water tower whether
it be a new logo or simple design. Likely the words ‘City of’ will not be included on the water
tower. As an example, Mayor Zabel referenced St. Cloud, Minnesota’s water tower design
featuring two shades of blue in an abstract design encompassing the city’s name.
In response to Mayor Zabel asking the Council if now is the time to redesign the current City
logo, Council Member Ingebrigtson asked to know Communications Manager Lori Pulkrabek’s
opinion as this seemed to him more of an operational decision. Mayor Zabel noted that from
past conversations the oak tree on the current logo is too detailed, and the rationale behind
the second primary color is unknown.
Council Member Ingebrigtson expressed concern about the vast number of varying opinions
that would be received during a public input period for a new logo. Mayor Zabel stated that a
consultant could assist with creating three logo design options that would be brought forth for
public input.
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AUGUST 27, 2024
PAGE TWO
Ms. Volkers referenced the experience she had while working in Moorhead, Minnesota in
which many residents could not agree on a proposed water tower design.
Council Member Ingebrigtson was unsure if now is the right time to redesign the City’s logo.
Mayor Zabel disagreed given the upcoming capital improvement and projects which will
require new signage.
In response to Mayor Zabel asking the Council if now is the time to redesign the current City
logo, Council Member Willenbring asked about the associated costs. Mayor Zabel pointed out
that it would likely be a phased-in approach, but that the Council should determine what they
are comfortable with as a starting point.
Council Member Morcomb was open to redesigning the logo, and was also supportive of an
abstract design on the water tower.
Staff was asked to come up with three abstract variations for the water tower by mid-to-late
September which will be sent to the Council via email prior to discussing and finalizing at an
October workshop.
Ms. Volkers was asked to find two consultants to provide a timeline and cost for a permanent
logo redesign.
In reference to the timeline for the water tower logo, Mr. Bachmeier indicated that the bid
opening is slated for October 31, 2024. An addendum could be sent out as late as October
24, 2024 to include the logo in the bid. Ms. Volkers added that if an allowance was included
as part of the bid, the City can indicate that the final logo design will be determined at a future
date.
Council Member Ingebrigtson referenced St. Cloud, Minnesota’s “old” water tower design that
featured the city’s name in a nice cursive font.
Mr. Bachmeier explained that per City Policy FR-016, the City Council has discretion to
determine if prevailing wage provisions should be applied to this City-funded project. There is
a significant cost savings with a waiver from the prevailing wage requirement.
Mayor Zabel requested that the City Council review City Policy FR-016 at a future workshop.
In response to Council Member Willenbring’s question about the definition of prevailing wage,
Mr. Bachmeier said that the prevailing wage requirement means union labor wages must be
used for the project.
The Council was comfortable waiving the prevailing wage requirement for this project.
Referencing the project schedule, Council Member Morcomb asked how the City would handle
the need for additional water, if needed, while this water tower is out of commission.
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AUGUST 27, 2024
PAGE THREE
Mr. Bachmeier stated that the City has an inter-connect with Woodbury, but would implement
water restrictions first in that scenario.
Mayor Zabel emphasized the importance of a neighborhood communication plan given the
location of this water tower.
2025 ENTERPRISE FUND BUDGETS AND CAPITAL IMPROVEMENT PLAN
Ms. Volkers provided the year-to-date expenses and revenues for 2024 which covers
approximately six months.
In response to Council Member Her’s question about what is included in the Surface Water
Fund, Finance Director Kyle Stasica explained that there is a flat rate for residential accounts
and a custom rate for commercial accounts based on the amount of impervious surface on
the property.
Mr. Stasica noted that the proposed Utility System Replacement Fund (USRF) rate increases
for 2025 factor in inflation and future capital needs. Currently, there are two studies within
the Capital Improvement Plan (CIP) that will help guide these future capital needs.
In reference to the 0% proposed rate increase for Surface Water, Mr. Stasica said that the City
is in a holding pattern this year until future year street projects can more accurately determine
the cost of this service. In speaking with Mr. Bachmeier, Mr. Stasica noted that the City
recently completed installing storm sewers and removing all storm water ditches within the
City. These were done as part of Street Reconstruction projects and resulted in greater costs
for the Surface Water Fund.
The Consumer Price Index (CPI) and Personal Consumption Expenditure (PCE) Price Index
were used as a reference for 2025 rate increases. Ms. Volkers explained that staff intends on
using these measures to avoid large fluctuations from year to year.
Mayor Zabel expressed concern about the proposed 2% Sewer Fund rate increase as he wants
to ensure the City is keeping pace with the actual cost of the service.
Council Member Morcomb noted that in his day job, he uses the CPI as well, but takes a five-
year average.
Council Member Willenbring pointed out that as part of these rate increase discussions, the
Council needs to acknowledge that residents are the ones affected the most. In a future year,
Council Member Willenbring would like to tie the utility rates to the levy for better
transparency. Mayor Zabel expressed concern with tying it to the levy as the rate would be
based on household size versus water usage, which is the current metric.
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AUGUST 27, 2024
PAGE FOUR
Mayor Zabel was curious to know if it is possible to go lower than a 3% increase for low-usage
water accounts and higher than 3% for high-usage water accounts. He would like to reward
the users that use less water.
In response to Council Member Ingebrigtson’s question about high-water usage consumer
data, Mr. Stasica said the residential data does not drill down by household makeup.
Council Member Her clarified Mayor Zabel’s earlier point that instead of a flat 3% increase
across the board, the low-usage water accounts would receive a lower rate increase, i.e. 2%,
and the high-usage water accounts would receive a rate increase higher than 3%. Ms. Volkers
indicated that staff will research if this structure would provide enough revenue to sustain the
Water Fund.
Council Member Morcomb was supportive of providing an incentive to the high-water users to
use less due to the City’s capacity to provide this service.
Council Member Ingebrigtson pointed out that the City has limited options when it comes to
covering expenses; it can either raise taxes or cut services. Mayor Zabel stated that the City
has an obligation to provide these services, but has options when it comes to cutting
expenses.
Council Member Willenbring asked if the personnel expenses associated with the enterprise
funds could be moved into the General Fund. Mr. Stasica stated that the enterprise funds
should reflect their true costs which include personnel expenses.
Mayor Zabel was supportive of the 3% Water Fund rate increase if staff is able to use a lower
rate increase for the low-usage water accounts, and a higher rate increase for the high-usage
water accounts. Ms. Volkers stated that staff will send their findings about the possibility of
this structure to the Council via email.
Council Member Morcomb was supportive of only increasing the rates to cover the expenses
of the enterprise funds.
Council Member Willenbring pointed out that as of the year-to-date data, the revenues are
greater than the expenses. Mayor Zabel added that water usage would decrease as the year
continues. Ms. Volkers stated that expenses are projected to increase next year.
Council Member Morcomb suggested having a more in-depth conversation about these utility
rates next year once the utility rate study data is known.
There was general Council support for the proposed 3% rate increase across all accounts for
the Water Fund, pending staff’s finding of the suggested alternative incentivized structure.
Mayor Zabel expressed concern that the proposed 2% rate increase for the Sewer Fund is not
keeping pace with the increased cost which is going up by 7%.
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AUGUST 27, 2024
PAGE FIVE
In response to Council Member Her’s question about whether the Sewer Availability Charge
(SAC) and Water Availability Charge (WAC) are passed through this fund, Mr. Stasica stated
that they are not.
As a follow up, Council Member Her asked about the major cost drivers for this fund. Mr.
Stasica noted that operating costs increased due to the Metropolitan Council’s Environmental
Services wastewater treatment.
In response to Council Member Morcomb’s question about having enough reserves in the
Sewer Fund to remain conservative with the rate increase, Mr. Stasica confirmed.
Mayor Zabel asked about the rationale for the Sewer Fund’s large cash on hand. Mr. Stasica
noted that a small portion is transferred out each year to the USRF.
In response to Mayor Zabel’s question about additional cost drivers, Mr. Stasica said it is the
Other Financing Uses which are transfers out to the USRF.
There was general Council support for the proposed 2% rate increase for the Sewer Fund.
Council Member Willenbring pointed out that had the Metropolitan Council costs not gone up
then the City would not have to raise their rates accordingly.
Council Member Her asked how the results from the Pedestrian and Bicycle Plan are being
integrated into future plans especially as it relates to the proposed rate increase of 2% for the
Street Light Fund.
Council Member Ingebrigtson stated that the City should prioritize its needs given the
competing demand between services and amenities, and expenses.
Mayor Zabel noted that staff should layer in the results from the Pedestrian and Bicycle Plan
into future capital improvement projects. Ms. Volkers clarified that staff needs clear direction
from Council to implement the identified priorities from the Pedestrian and Bicycle Plan. Mayor
Zabel added that as capital improvement projects are discussed, the priorities should be
layered into the CIP.
Council Member Ingebrigtson mentioned that a lot of the priorities from the Pedestrian and
Bicycle Plan involve Century Ave N whose improvement relies heavily on many other agencies.
Council Member Morcomb was supportive of a 0% rate increase for the Street Light Fund
given the current surplus unless there is a need to fund future capital needs not currently
identified. Ms. Volkers noted that street lights are part of the identified priorities within the
Pedestrian and Bicycle Plan which will be implemented if given Council direction.
In response to Mayor Zabel’s question about the rationale for the 2% rate increase for the
Street Light Fund, Mr. Bachmeier stated that the City is in negotiations with Washington
WORKSHOP MINUTES
AUGUST 27, 2024
PAGE SIX
County about the fiscal responsibility for eight signals that are slated to be put in as part of
the Gold Line Bus Rapid Transit project.
Staff was comfortable with a 0% rate increase for the Street Light Fund. The Council agreed.
Mr. Stasica noted that the major expenses for the Surface Water Fund are Capital Outlay and
Other Financing Uses which are transfers out to the USRF.
In response to Council Member Her’s question about the Other Financing Uses expense in
2023, Mr. Stasica explained that this was a Special Revenue Fund prior to 2023, and 2023
was the year that it was reclassified as an Enterprise Fund. This reclassification caused
significant Other Financing Sources and Uses for 2023 actuals that are one-time and
accounting-only activity.
Mr. Stasica reviewed a few of the CIP modifications from the prior budget workshop
discussions. Ms. Volkers added that the Willowbrooke project update is forthcoming.
Ms. Volkers stated that City staff will be more proactive about reviewing the Vehicle and
Equipment Replacement Fund (VERF) based on need.
ADMINISTRATOR UPDATE
Ms. Volkers noted that the City needs more sponsors for the Family Fun Flatables event on
Saturday, September 14, 2024, and asked that the Council help seek out additional sponsors.
She will send out the application packet to the Council and how much additional sponsorship
is needed. The Council will send any prospective sponsors to Ms. Volkers for circulation to
avoid any duplication of efforts.
Mayor Zabel requested that Ms. Volkers send an updated Recreation Department
programming profit/loss statement. Additionally, he would like more information about how
the Recreation Department determines who qualifies for financial assistance for
programming.
Ms. Volkers reported that she has been working with Washington County to get a prescription
drug drop box in City Hall. The proposed agreement indicates that Washington County will
provide the drop box and communications plan, but once the drop box is full, then an Oakdale
Community Service Officer (CSO) will take it to be emptied at the Sheriff’s Office in Stillwater.
She noted that the City has liability for anything that may happen at City Hall or during
transportation.
Council Member Her asked if there is staff capacity for transporting the prescription drugs.
Ms. Volkers indicated that the Police Department could make it work starting in December or
January with a CSO, not a licensed police officer. This was a change being allowed now by the
Sheriff.
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AUGUST 27, 2024
PAGE SEVEN
Mayor Zabel expressed concern about having a CSO transport the prescription drugs versus
a licensed police officer, which had previously been the requirement. Council Member
Willenbring agreed with his sentiment.
In response to Mayor Zabel’s question about why the drop off box could not be put at the
Oakdale Library, Ms. Volkers said it was due to the proximity to children and families, per the
Sheriff.
Council Member Willenbring asked for additional information about placement of the drop off
box at City Hall. Ms. Volkers said it would be located inside, monitored by a camera, and
available only during normal business hours.
Council Member Ingebrigtson was supportive of deferring to Police Chief Nick Newton’s
comfort level.
Council Member Morcomb reiterated the public safety benefit of having a prescription drug
drop box in City Hall.
Ms. Volkers was asked to review the emptying requirement once the drop box is full. It was
unclear whether the drop box could be temporarily closed for drop off or if it had to be taken
to the Sheriff’s Office immediately. The Council would like to know this information prior to
making a final decision because, depending on the requirement, it could become a burden on
staff.
In response to Council Member Willenbring’s question about theft that could occur from these
boxes, Chief Newton explained that they are placed strategically within eyesight of City staff.
In reference to avoiding any mishandling of the prescription drugs during transport, Chief
Newton expressed his confidence in having CSOs handle the drop off.
Mayor Zabel suggested that the Police Facility remodel and expansion project have this
amenity built in.
Ms. Volkers gave an update on the project the Police and Fire Chiefs have been working on,
in conjunction with Lexipol, to enhance the public safety departments’ policies and operating
procedures. She said the Council needs to approve these policies as they are updated.
Process wise, Ms. Volkers suggested including the policy name and number in the Request
for Council Action, but send the proposed policies under separate cover as to not bog down
the agenda system with hundreds, if not thousands, of pages.
Mayor Zabel requested that the policies be sorted into less-controversial versus others that
may need additional discussion.
Ms. Volkers noted that only specific policies will be brought to workshop, otherwise they will
go straight to the regular meeting for approval.
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AUGUST 27, 2024
PAGE EIGHT
Mayor Zabel suggested sending the list of policies to review by title and the Council can pull
ones they want to discuss or would like more information on.
COUNCIL TOPICS
In response to Council Member Her’s question about the hiring of a Public Works Director, Ms.
Volkers stated that after an extensive interview process, an offer will be extended tomorrow.
She will send the candidate’s application to the Council.
Council Member Her asked for an update on the Enclave Helmo Station development. Ms.
Volkers stated this project is moving through the process. She will send a follow up to some
outstanding Council questions via email.
Council Member Her reported that he is submitting his formal resignation effective September
30, 2024. Ms. Volkers added that a recognition for Council Member Her will take place at the
September 10, 2024 regular meeting.
Council Member Morcomb stated that residents around Tartan High School have been having
issues with parking on private property due to the ongoing construction and lack of available
parking for students, staff, and visitors.
Chief Newton gave an update on the meetings that have been had with Independent School
District (ISD) 622 and conversations about ways to ease the parking issues. ISD 622 has a
contract with nearby churches to utilize their parking lots during the school day. He added that
a couple other options include parking on the east side of Glenbrook Ave N and removing the
‘No Parking’ signs from the west side of Greenway Ave N.
Council Member Morcomb indicated that the church parking seemed to fill up quickly the first
few days and may not be the needed solution.
Council Member Ingebrigtson stated that this parking issue falls within the school district’s
responsibility to find a solution. Mayor Zabel disagreed, noting that when the issue spills over
into City streets and affects residents then it becomes the City’s responsibility as well.
Chief Newton noted that the Police Department will impartially enforce the law regarding
illegally parked cars around Tartan High School. He added that ISD 622 should communicate
to the students that the Police Department will be enforcing parking laws.
Council Member Willenbring passed along feedback on the Park System Plan survey to make
it shorter so that it takes less time to fill out.
Mayor Zabel reported that he is starting a new job next week so his availability to attend City-
related functions during the work day will change. Council Member Ingebrigtson volunteered
to fill in as needed. Council Member Morcomb noted that a couple weeks’ notice is helpful in
determining his availability to fill in.
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PAGE NINE
Mayor Zabel asked about when the ballot questions would be viewable on the sample ballot
available through the Secretary of State. City Clerk Sara Ludwig said that Washington County
is sending the sample ballots for proofing tomorrow, and the City has to give final approval by
Friday, August 30, 2024. Mayor Zabel added that the Oakdale Area Chamber of Commerce
(OACC) is writing a letter of support for the City’s two ballot questions.
Mayor Zabel mentioned that OACC is bringing their Happy Hour events back and encouraged
the Council to attend when possible.
ADJOURNMENT
The workshop was adjourned at 6:50 PM.
Respectfully submitted,
Sara Ludwig, City Clerk
Agenda
AGENDA
City Council
Workshop Meeting
August 27, 2024
Hadley Conference Room
5:00 PM
Amended
5:00 PM Water Tower 3 Reconditioning
5:20 PM 2025 Enterprise Fund Budgets and Capital Improvement Plan
6:20 PM Administrator Update
6:30 PM Council Topics
6:50 PM Adjournment
Continue after Regular City Council Meeting, if needed
Council Topics
COUNCIL MEMORANDUM
To: Honorable Mayor and City Council
From: Brian Bachmeier, Consulting City Engineer
Date: August 27, 2024
Subject: Water Tower 3 Reconditioning
BACKGROUND
The City Council has requested an opportunity to review two items as part of the Water Tower 3
paint project prior to approving the plans/specification, these items include:
• Tower color
• Direction on the logo
In addition, there are two items staff will discuss with the City Council:
• Potential cost savings with a waiver from the prevailing wage requirement
• Project schedule
Color
The current tank color is close to one of these two colors:
AH72 02BR
A darker color absorbs radiant heat from the sun. This can be beneficial in reducing ice buildup in
the winter; however, it also has the potential to warm the water in summer. A lighter color has the
potential for mildew growth to be more visible and may require periodic power washing.
Logo
The current logo is a safety green and a custom dark brown.
1
The City’s branding guide suggests the following options:
2
A general rule of thumb for the tank logo/lettering is it should be no longer than ¾ of the tank
diameter.
Potential cost savings with a waiver from the prevailing wage requirement
Since this is a City funded project, the City Council has the discretion to determine if prevailing
wage provisions should be applied to this project (City Policy FR-016). KLM recently assisted the
City of Savage on a water tower painting project, and it was bid both as a prevailing wage job and
without prevailing wages. The average of the same contactor’s new bid (no prevailing wage) was
~$300,000 less. The Savage water tower is also a hydropillar, but it is a bit smaller at 1,000,000
gallons (Oakdale Water Tower 3 has a capacity of 1,500,000 gallons).
3
Project Schedule
• August 27, 2024 – Workshop direction on color, logo, and prevailing wage.
• September 10, 2024 – Approval of plans/specifications, and authorization to advertise and
collect bids
• October 7, 2024 – Advertise
• October 22, 2024 – Pre-bid meeting
• October 31, 2024 – Bid opening
• Fall 2024 – Install temporary poles for antennas
• March 2025 – Begin prep work and work not involving coatings
• April 1, 2025 – Begin coating reconditioning
• June 30, 2025 – Reconditioning end date
• October 1, 2025 – Removal of temporary cellular towers and site restoration complete
COUNCIL DIRECTION REQUESTED
Staff requests City Council direction on the water tower color and logo design, and if prevailing wage
should be applied to this project.
4
COUNCIL MEMORANDUM
To: Honorable Mayor and City Council
From: Kyle Stasica, Finance Director
Christina Volkers, City Administrator
Date: August 27, 2024
Subject: 2025 Enterprise Fund Budgets and Capital Improvement Plan
BACKGROUND
Tonight’s discussion is a continuation of the Enterprise Fund budgets, including the suggested utility
rates, and updates to the Capital Improvement Plan & Vehicle and Equipment Replacements.
Prior 2025 budget discussions:
March 12, 2024 City Council Workshop: Staff presented the 2024 Debt and related projects including
the upcoming Building Improvements: new Public Works Facility, Police Expansion, and City Hall
Renovation; and the Willowbrooke Park Improvements: Willowbrooke Commons Park, Willowbrooke
Trails, Willowbrooke Open Space, and Willowbrooke Neighborhood Park West Parking Area.
June 11, 2024 City Council Workshop: Staff presented baseline budgets for General, Enterprise, and
Special Revenue Funds, including the detailed budgets on the OpenGov budget software. A baseline 2025
total levy of $19,712,269, a 9.1% increase from $18,065,658 in 2024, was presented including the
individual General Fund, Capital Improvement Plan, and Debt Service levies. Council direction included:
Adding a vacancy factor to personnel and benefits expenditures; Reviewing the assumption for new Full-
time Equivalents (FTEs) beginning January 1st; Reviewing the budget and levy to remove the effects of
one-time expenditures; Analyzing the budget for further options to reduce the General Fund levy regarding
personnel and benefits; Support for a 5-6% levy increase, including the General Fund, Debt Service, and
Capital Improvements.
June 25, 2024 City Council Workshop: Staff continued the presentation of the Enterprise and Special
Revenue Funds, including the detailed budgets on the OpenGov budget software. Further review of any
utility rate changes required review of the capital improvement plan and upcoming utility projects,
scheduled for a later workshop.
July 9, 2024 City Council Workshop: The City's future debt service was reviewed with an emphasis on the
2025 Debt Service levy. The 2025 Debt Service levy was estimated at $2,055,626, an increase of about
$33,000 from 2024's Debt Service levy of $2,022,665. This levy is to pay for the annual principal and
interest due on City-issued bonds. For 2025, the new levy-supported debt includes the 2024 Street
Improvement and the Willowbrooke Commons debt.
July 23, 2024 City Council Workshop: The 2025 - 2029 Roadway, Signal, Trails, and Drinking Water
Settlement plans were reviewed (subsets of the overall 2025 – 2029 Capital Improvement Plan). Major
updates included reduced scale of the annual street reconstruction program, inflationary factors, and
prioritized the Drinking Water projects to ensure funding.
July 30, 2024 Special City Council Workshop: The 2025 - 2029 Capital Improvement Plan and 2025 -
2034 Vehicle and Equipment Replacements (collectively the CIP) were reviewed. The total estimated
expenditures for 2025 - 2029, excluding Vehicles & Equipment, is approximately $140 million. The total
1
estimated Vehicles & Equipment expenditures for 2025 - 2034 is approximately $18.1 million. The 2025
CIP levy was estimated at $2,170,474, an increase of about $480,000 from 2024's CIP levy of
$1,690,000. This levy pre-funds vehicle and equipment purchases and supports improvement projects
to decrease the City's reliance on the more expensive debt funding. Council direction included specific
project updates along with updates to the fund summary layout to increase user readability.
August 14, 2024 City Council Workshop: Staff presented the General Fund budget and the proposed tax
levy including the General, Capital Improvement Plan, and Debt Service levies. A proposed levy of around
6% was supported. That includes moving the estimated increase in 2025 Electric & Gas Franchise Fees
of $605,000 to the Capital Improvement Plan to fund street projects. To get to the approximate 6% levy
increase, it was suggested to reduce Vehicle & Equipment funding thus less cash balance accumulating,
less increase in supply budgets, increasing the transfer to $50,000 from repayments made to the
pandemic business loans, use 2024 franchise fees projected in excess of 2024 budgeted franchise fees,
and the remaining is to be around 6% total levy increase from 2024.
August 27, 2024 City Council Workshop:
Enterprise Fund Budgets - the City’s Water, Sewer, Surface Water, and Street Light Utility operations are
defined as enterprise funds, which are self-supporting operations that sell goods and services to the
public for a fee and are accounted for using the same accounting framework followed by entities in the
private sector. This fee-based structure is different than the majority of the City’s funds, which are
allocated a portion of the property tax levy paid by property owners.
In addition to the wages, benefits, supplies, and other ongoing operating costs associated with each
specific activity, these utility funds are also used to accumulate revenues that are annually transferred to
the Utility System Replacement Fund (USRF) to facilitate capital improvements related to the City’s utility
infrastructure. These projects include utility improvements in conjunction with roadway reconstruction,
water tower reconditioning, water meter transmitter replacements, water main replacement, well
inspection and reconditioning, and lift station rehabilitation. Proposed rate increases for 2025 are as
follows:
• Water 3%
• Sewer 2%
• Street Light 2%
• Surface Water 0%
The proposed rate increases are to fund future capital needs through the annual transfer into the Utility
System Replacement Fund, which is used to finance capital projects. The table below shows historical
data for the annual transfer into the Utility System Replacement Fund.
2024 Original 2025 Proposed
Fund 2022 Actual 2023 Actual Budget Budget % Change
Water 450,000 500,000 590,000 680,000 15.3%
Sewer 778,593 540,000 690,000 840,000 21.7%
Street Light 338,000 90,211 150,000 155,000 3.3%
Surface Water 120,000 1,388,674 220,000 250,000 13.6%
Total Expenses 1,686,593 2,518,885 1,650,000 1,925,000 16.7%
2
Enterprise Modifications
The following modifications were made since the Enterprise budgets were presented on June 25, 2024:
1. Utility rate increases by fund resulting in increased revenues of:
a. Water - $3,877,388 to $3,972,388 or $95,000
b. Sewer - $4,820,000 to $4,940,000 or $120,000
c. Street Light - $640,000 to $660,000 or $20,000
2. Vacancy factor of 1.5% added decreasing personnel and benefit costs.
3. 2025 Wastewater charges updated to the Metropolitan Council’s adopted amounts. Total for
Oakdale is $2,728,414 or about 7% increase from 2024 charges of $2,551,278.
4. Increased Street Light depreciation from $267,000 to $430,000 ($163,000 change) to be more
accurate with prior actuals and expected.
5. Staff increased the Surface Water transfer out to the USRF by $30,000 to a total of $250,000
due to updated assumptions for the Surface Water costs on the annual street reconstruction
projects.
6. Added depreciation for Surface Water of $230,000 based on 2023 depreciation.
The tables below show the two most recently completed years’ actuals, 2024 original budget, and the
current 2025 proposed budget by revenue and expenditure type. Capital Contributions and Depreciation
are removed to approximate cash effects as requested by the Mayor. Note that the Enterprise revenues
were approximated using 2023 actual results, plus the 2024 rate changes, plus the proposed 2025 rate
changes.
(700) Water
2024 Original 2025 Proposed
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 3,124,518 6,958,929 3,500,015 3,972,388 13.5%
Personnel 390,514 452,272 489,772 543,990 11.1%
Benefits 202,503 254,438 239,332 286,134 19.6%
Professional Services 304,366 363,507 471,855 484,005 2.6%
Supplies 352,607 704,038 689,000 726,438 5.4%
Operating 459,900 476,481 460,800 476,715 3.5%
Other 74,844 112,982 109,900 114,394 4.1%
Capital Outlay 620,990 622,122 681,727 681,727 0.0%
Other Financing Uses 1,025,000 1,075,000 1,165,000 1,255,000 7.7%
Total Expenses 3,430,724 4,060,839 4,307,386 4,568,403 6.1%
Fund Balance Change -306,206 2,898,090 -807,371 -596,015
Less Capital Contributions 206,372 3,068,526 0 0
Plus Depreciation 620,990 622,122 681,727 681,727
Cash Change 108,412 451,686 -125,644 85,712
NOTE: Capital Contributions and Depreciation effects removed from fund balance to approximate cash change.
3
(725) Sewer
2024 Original 2025 Proposed
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 5,342,933 6,138,765 4,820,000 4,940,000 2.5%
Personnel 225,856 294,616 334,729 362,263 8.2%
Benefits 139,524 198,842 185,803 218,284 17.5%
Professional Services 121,561 130,680 190,785 160,785 -15.7%
Supplies 29,637 23,025 59,000 74,000 25.4%
Operating 2,538,814 2,575,624 2,714,178 2,895,514 6.7%
Other 76,031 112,978 109,900 114,394 4.1%
Capital Outlay 438,990 498,782 504,715 489,715 -3.0%
Other Financing Uses 1,353,593 1,115,000 1,265,000 1,415,000 11.9%
Total Expenses 4,924,005 4,949,547 5,364,110 5,729,995 6.8%
Fund Balance Change 418,928 1,189,218 -544,110 -789,995
Less Capital Contributions 1,064,070 1,444,084 0 0
Plus Depreciation 438,990 498,353 484,715 484,715
Cash Change -206,152 243,487 -59,395 -305,280
NOTE: Capital Contributions and Depreciation effects removed from fund balance to approximate cash change.
(750) Street Light
2024 Original 2025 Proposed
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 1,104,301 1,756,248 625,000 660,000 5.6%
Personnel 67,864 81,794 78,985 89,968 13.9%
Benefits 22,673 25,386 26,675 32,555 22.0%
Professional Services 32,462 37,297 62,050 43,050 -30.6%
Supplies 21,928 20,704 31,250 31,750 1.6%
Operating 190,952 189,162 202,500 202,500 0.0%
Other 0 0 0 0 0.0%
Capital Outlay 380,899 433,605 276,761 439,750 58.9%
Other Financing Uses 388,000 140,211 200,000 205,000 2.5%
Total Expenses 1,104,778 928,159 878,221 1,044,573 18.9%
Fund Balance Change -477 828,089 -253,221 -384,573
Less Capital Contributions 528,562 1,097,391 0 0
Plus Depreciation 380,899 433,605 267,011 430,000
Cash Change -148,140 164,303 13,790 45,427
NOTE: Capital Contributions and Depreciation effects removed from fund balance to approximate cash change.
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(775) Surface Water
2024 Original 2025 Proposed
Expense Category 2022 Actual 2023 Actual Budget Budget % Change
Revenue 987,294 7,892,013 756,480 770,000 1.8%
Personnel 228,294 203,345 203,493 162,974 -19.9%
Benefits 66,181 59,844 67,873 60,891 -10.3%
Professional Services 15,543 45,897 98,250 98,250 0.0%
Supplies 17,589 13,912 25,750 25,750 0.0%
Operating 0 8,091 1,150 1,150 0.0%
Other 3,879 4,651 5,000 5,300 6.0%
Capital Outlay 0 0 0 230,000 0.0%
Other Financing Uses 120,000 1,388,674 220,000 250,000 13.6%
Total Expenses 451,485 1,724,413 621,516 834,315 34.2%
Fund Balance Change 535,809 6,167,600 134,964 -64,315
Less Capital Contributions 0 5,734,307 0 0
Plus Depreciation 0 0 0 230,000
Cash Change 535,809 433,293 134,964 165,685
NOTE: Capital Contributions and Depreciation effects removed from fund balance to approximate cash change.
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Capital Improvement Plan (CIP) and Vehicle and Equipment Replacement Fund (VERF) Modifications
The CIP is a planning document intended to assist policy makers and staff to plan for major capital
improvement, renewal, and replacement expenditures. With growth, the need for services will continue
to increase in the City. At the same time, the costs of vehicles, equipment, and infrastructure are expected
to increase due to market fluctuations and inflation. The CIP formalizes a process in which future projects
and outlays can be identified and prioritized. It is intended to provide a realistic projection of future capital
expenditures necessary to meet the anticipated needs of the community.
Every first year of the CIP being discussed for the next budget year becomes a capital budget upon
adoption by the City Council. Projects identified in years 2026 and beyond should be considered for
planning purposes only, and not categorized as fixed commitments.
Capital Improvement Plan Modifications
Staff has updated the CIP to reflect the following modifications:
1. P2025-02 Willowbrooke Neighborhood Park West budget decreased to $2,000,000 and will be
further evaluated as request for proposals are received and reviewed.
2. The funding sources for the R2025-01, R2026-01, R2027-01, R2028-01, and R2029-01 annual
street reconstruction projects were updated to increase the utility portion of each project (transfer
in from Utility System Replacement Fund) by $120,000 for surface water costs per review of prior
project actuals. There is a matching decrease in the budgeted debt funding of each project.
3. T2025-01 and T2026-01, Public Works Tech Upgrades and Police Tech Upgrades, were each
moved out one year to better match with expected construction timelines of the respective
buildings.
4. U2027-02, U2028-03, and U2029-03 added for $2,000,000 each as a placeholder for expected
water main projects in 2027-2029.
5. U2029-02 added for $3,000,000 for Trunk Highway 120 Water Main Replacement. Currently, the
Minnesota Department of Transportation (MNDOT) is performing a study of Hwy 120/Century Ave
between I-94 and I-694 that is reviewing the pavement and other potential improvements in this
area. MNDOT does not have an expected construction date. The inclusion of this project on the
CIP is to ensure the City has funds available to replace the existing water main while the road is
being reconstructed by MNDOT.
6. V2025-08 and V2025-09 Parks and Streets pickup trucks were moved to 2027 as vehicles
remaining life are re-evaluated. V2025-10 Wood Chipper and V2025-11 MV5 Sidewalk Machine
renumbered as V2025-08 and V2025-09, respectively.
7. Police vehicle replacement updated moving three vehicles from 2027 replacement year to 2028.
The VERF had included nine new vehicles for the Police Department in 2027, which was too many
for staff to coordinate in one year. With this update, Police now has six vehicle replacements in
2027 and seven in 2028. Consideration should be given to spreading those police vehicle
purchases out in future years for better fiscal planning.
Remaining Budget Calendar
September 10, 2024
City Council certifies 2025 Proposed Property Tax Levy and sets meeting date for the Truth in Taxation
meeting.
November 12, 2024
Council Budget Workshop to review final changes, if any.
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Mid-November 2024
Proposed Property Tax (Truth in Taxation) notices sent by County to all property owners in the City.
December 10, 2024
Truth in Taxation meeting for 2025 Budget and Tax Levies. City Council adopts 2025 Budget, 2025
Tax Levy, and 2025-2029 CIP including the 2025-2034 Vehicle and Equipment Replacement Plan.
COUNCIL DIRECTION REQUESTED
Staff requests feedback and intent from the Council on the Enterprise Fund budget, suggested utility
rates, and the updates to the CIP. Note that any utility rate changes are a part of the Fee Schedule update
typically done at the first City Council meeting in December for the upcoming year.
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