Muyni
← Back to Woodbury

City Council - Workshop Meetings

Regular Meeting

Woodbury, MN · May 28, 2025

AgendaMinutes

Minutes

Minutes Woodbury City Council Workshop Wednesday, May 28, 2025 Pursuant to the due call and notice thereof, a workshop meeting was duly held virtually and at the Woodbury City Hall, 8301 Valley Creek Road, on the 28th day of May 2025. Present: Mayor Anne Burt, Councilmembers: Kim Wilson, Jennifer Santini, Steve Morris, and Donna Stafford. Others Present: Clinton Gridley, City Administrator; Angela Gorall, Deputy City Administrator; Eric Searles, Assistant Community Development Director/City Planner; Chris Hartzell, Engineering Director; project consultants, and various other staff in-person and online. Mayor Anne Burt called the meeting to order at 5:30 p.m. Workshop Discussion Items 1A. Public Safety Campus Improvements; Update and Information Presentation provided by staff with Council questions, comments and discussion throughout. Also present were architects with Wold Architects & Engineers. Council noted concern with site access for the public safety campus and requested staff’s continued review of alternatives. Council provided no further direction to staff and advised staff to proceed with projects as presented for the public safety campus improvements as well as advancing consideration by Council for reactivation of the Upper Afton Fire Station 2 in 2025. 1B. Street Lighting Utility Fund – Rate Study Direction Concerning Street; Lighting Utility Fund Rate Structure and Council Directive – Street; Lighting Utility Capital Asset Funding and Reserve Policy Presentation provided by staff followed by Council discussion. Council provided direction as follows:  Support of Option No. 3, as recommended by staff, with regard to the rate structure options.  To have staff proceed on having Council consideration of the revised structure and rates at an upcoming Council meeting.  To have staff proceed on having Council consideration of the provided Council Directive at an upcoming Council meeting. Council further supported staff developing the necessary community engagement process and providing a memorandum on the plan to Council. Administrator Comments and updates None provided. Mayor and City Council Comments and Commission Liaison Updates None provided. Adjournment Meeting was adjourned at 7:09 p.m. Respectfully submitted, Angela Gorall, Deputy City Administrator Approved by the Woodbury City Council on June 11, 2025.

Agenda

City Council Workshop Meeting Ash Conference Rooms May 28, 2025 | 5:30 PM This City Council Workshop meeting is taking place virtually and at Woodbury City Hall in the Ash Conference Rooms. Members of the public may attend the meeting in person and may also join the meeting using a computer, tablet, or smartphone and accessing the virtual meeting link at woodburymn.gov/VirtualMeetings. Watch the Live Meeting Public comments will be accepted during the meeting both in person and virtually. Virtual questions should be submitted via the online Q&A feature within the virtual meeting link. Questions regarding the meeting will be taken between the hours of 8:00 a.m. to 4:30 p.m. at 651-714-3524 or at council@woodburymn.gov. Questions received after 4:30 p.m. will be responded to in the next three to seven business days. Please note that all agenda times are estimates. Unfinished workshop items will be carried over to the end of the Council meeting. 5:00 p.m. Dinner – Birch Conference Room The intent of the workshop session is to provide a forum for City Council and City staff to discuss more in-depth Council items, exchanging viewpoints and visions prior to the item being set for Council action at a regular meeting of the City Council. Workshop sessions are neither a public hearing nor an open microphone session. No formal votes will be taken and any direction from Council will be in consensus format. The workshop session is not recorded. Workshop Agenda 1. Workshop Discussion Items - 5:30 p.m. 1A. Public Safety Campus Improvements; Update and Information 25-127 1B. Street Lighting Utility Fund – Rate Study Direction Concerning Street 25-128 Lighting Utility Fund Rate Structure and Council Directive – Street Lighting Utility Capital Asset Funding and Reserve Policy 2. Administrator Comments and Updates* - 7:00 p.m. 3. Mayor and City Council Comments and Commission Liaison Updates* - 7:05 p.m. 4. Adjournment - 7:15 p.m. Woodbury City Council Agenda May 28, 2025 | 5:30 PM  Items under comments and updates are intended to be informational or of brief inquiry. More substantial discussion of matters under comments and updates should be scheduled for a future agenda. The City of Woodbury is subject to Title II of the Americans with Disabilities Act which prohibits discrimination on the basis of disability by public entities. The City is committed to full implementation of the Act to our services, programs, and activities. Information regarding the provision of the Americans with Disabilities Act is available from the City Administrator's office at 651-714-3523. Auxiliary aids for disabled persons are available upon request at least 72 hours in advance of an event. Please call the ADA Coordinator, Clinton P. Gridley at 651-714-3523 (TDD 714- 3568) to make arrangements. 1A City of Woodbury, Minnesota Office of City Administrator Council Workshop Letter 25-127 May 28, 2025 To: The Honorable Mayor and Members of the City Council From: Clinton P. Gridley, City Administrator Subject: Public Safety Campus Improvements; Update and Information Summary City staff, in partnership with Wold and Kraus-Anderson, continue to refine the design and implementation strategy for the Public Safety Campus project. Significant progress has been achieved since the last update, particularly in exterior architectural design and the refinement of the interior building layout. Work on many additional items including but not limited to; sustainability measures, stormwater management and design, site access evaluation, and relocation planning for public safety staff is well underway. Exterior architectural design The building’s design has undergone multiple iterations to incorporate feedback and direction previously provided by the City Council and staff. It will align with previously presented precedent imagery, color and material palettes, and existing public building aesthetics. This approach ensures consistency with the City’s architectural identity while incorporating durable and functional materials for long term use and sustainability. Additionally, the design will complement the Central Park project, creating a cohesive visual and functional connection between these important community spaces. The project team remains focused on balancing these design considerations with budget constraints and long-term operational needs. Refinement of interior building layout The interior layout of the Public Safety facility has undergone significant refinement, guided by an in-depth engagement process involving our architectural partners and dedicated focus groups composed of staff from multiple City departments and divisions and work units within Public Safety. These collaborative sessions have informed a thoughtful and strategic design approach, emphasizing flexibility and adaptability of interior spaces. By prioritizing versatile layouts, we are ensuring the facility can effectively accommodate future growth and seamlessly evolve alongside changing public safety practices and operational needs, maximizing the long- term efficiency and functionality of the space. Alternates and Value Engineering The project management team understands the total $60 million campus improvements budget. To mitigate financial risks in fluctuating material costs and broader economic uncertainties, the project management team is implementing flexible strategies, including alternate pricing options, contingency allowances, and value engineering. Continuous market monitoring and adaptive estimating practices are essential to navigating these uncertainties and maintaining project feasibility. Council Workshop Letter 25-127 May 28, 2025 Page 2 After engagement with the Council, the project will advance quickly through design development into construction documents in June, and bidding is still on target for late fall early winter of 2025/2026. These subsequent phases will continue refining technical elements such as mechanical, electrical, plumbing, fire protection, and civil engineering plans. These refinements will enable more precise cost estimates and preparation of comprehensive construction documents. The construction documents phase will produce full plans and specifications to support the bidding process and a projected construction start in spring 2026. Afton Fire Station Remodel - Update Staff advanced the Afton Fire Station Remodel design efforts in 2025 to prepare for a reactivation of the station and a 24-hour shift model (i.e. sleeping quarters, etc.). Staff is recommending advancing construction documents and bidding from 2026 to 2025 to reduce complexity related to other public safety relocation activities in 2026 for the Public Safety Campus Improvements. Communication and Public Engagement Staff has developed a working communications plan to inform the public about the relocation of public safety services before and during construction. The woodburymn.gov/InvestInSafety webpage has been updated to reflect construction updates while archiving relevant information that was shared leading up to the referendum. Additional information will be included in the June 2025 City Update newsletter. Recommendation No recommendation at this time. This update is provided to keep the Council informed of current progress, upcoming activities, and ongoing strategies to effectively manage project scope, schedule, and budget. No formal action is requested from the Council at this time. Governance Mode1  Fiduciary - Stewardship of tangible assets, oversees operations and ensures efficient and appropriate use of resources, legal compliance, and fiscal accountability. Fiscal Implications The 2024 and 2025 Adopted Annual Budget and 2025 – 2029 Capital Improvement Plan included funds in the amount of $60,000,000 for Public Safety Campus Improvements. Sufficient funding sources have been identified from a combination of Local Option Sales Tax ($50M), general obligation bonds ($4.75M), Capital Improvement Fund ($2M), investment earnings ($1M), rebates and grants ($1.75M), Municipal State Aid Roadway Construction Fund ($100K), Parks and Trails Replacement Fund ($100K), and the Storm Water Utility Fund ($300K). Policy This project is in accordance with the City’s Critical Success Factors – Safety. 1 Items marked “fiduciary” are primarily business-oriented topics; “strategic” items are primarily related to long- term strategies or goals; and “generative” items are primarily meant to produce new thoughts or ideas. Council Workshop Letter 25-127 May 28, 2025 Page 3 Public Process City staff has provided updates to Council at the January 24, 2024, April 24, 2024, November 6, 2024, and January 22, 2025, Council Workshops. The anticipated schedule remains as follows: Description Date Council Workshop No. 1 January 24, 2024 State of the City, Community Expo, National Police Week, National EMS Week, Night to Unite, Woodbury Days, Tour with the Mayor, February 2024 – National Crime Prevention Month, Open House, Various meetings November 2024 with Community Members Council Workshop No. 2 April 24, 2024 Local Option Sales Tax Referendum November 5, 2024 Council Workshop No. 3 November 6, 2024 Council Workshop No. 4 January 22, 2025 Council Workshop No. 5 May 28, 2025 Architectural design, Afton Fire Station, staff relocation Finalize design development, move to construction documents June 2025 Council Workshop No. 6 Site layout, phasing and staging, relocation, construction document July 16, 2025 updates Council Workshop No. 7 October 22, 2025 Schedule update, bid-day cost estimates, remaining details Bid advertisement November 2025 Award of Bid January 2026 Begin Construction – Ground Breaking April 2026 Substantial Completion Late fall of 2027 Background The Public Safety building at the corner of Valley Creek Road and Radio Drive no longer meets the needs of the growing department and community. In 2023, the State of Minnesota authorized the City to pursue a local option sales tax for the Public Safety Campus project. Voter approval in November 2024 enabled the implementation of this funding strategy, effective April 2025. On April 24, 2024, the Council directed staff to move forward with schematic design for a facility with a 20+ year design life, emphasizing site safety, flexibility for long-term growth, and sustainable design principles. The Public Safety Campus project will provide significant benefits to residents, businesses, and regional visitors. The local sales tax funding model ensures that the costs are equitably distributed among facility users. Written By: Peter Selb, Engineering Project Coordinator Chris Hartzell, Engineering Director Approved through: Clinton P. Gridley, City Administrator Attachments: None 1B City of Woodbury, Minnesota Office of City Administrator Council Workshop Letter 25-128 May 28, 2025 To: The Honorable Mayor and Members of the City Council From: Clinton P. Gridley, City Administrator Subject: Street Lighting Utility Fund – Rate Study Direction Concerning Street Lighting Utility Fund Rate Structure and Council Directive – Street Lighting Utility Capital Asset Funding and Reserve Policy Summary In 2024, City staff launched a Street Lighting and Storm Water Utility Fund Rate Study to ensure long-term financial sustainability amid rising costs and aging infrastructure. The Street Lighting Utility Fund rate methodology has been long-standing, and the rate has not changed for over a decade. Moreover, our streetlights are due for increased repair, while our maintenance agreements with Xcel Energy need review and renewal. Therefore, a Project Management Team (PMT) was formed, and in April 2024, the City hired Advanced Engineering and Environmental Services (AE2S) to analyze the rate structure, with plans for City Council review in 2025 and possible rate change implementation in 2026. In sum, the consultant and the PMT found the existing rate model overly complex and inequitable, lacking an asset management plan or long-term funding for rising energy costs and infrastructure replacement. This gap underscored the need for a new, sustainable funding methodology that addresses both equity and the full lifecycle of the utility’s assets. On May 28, 2025, staff will present the last of three planned Council Workshop meetings to finalize the Council Directive on the Street Lighting Utility Capital Asset Funding and Reserve Policy and a proposed structure and rates for implementation in 2026. If Council directs staff to ready the proposed new rate structure and rates for 2026, staff recommends authorizing the use of consultant geographic information systems (GIS) assistance and approximately 5 months to build the new utility billing rate structure, back testing for errors, and working with the community engagement team to share information to the public as appropriate. Recommendation Staff recommends the Council select Option No. 3 as the preferred rate structure to support the Street Lighting Utility Fund; and direct the Council Directive – Street Lighting Utility Capital Asset Funding and Reserve Policy to a regular council agenda for adoption consideration. Council Workshop Letter 25-128 May 28, 2025 Page 2 Governance Mode1  Fiduciary - Stewardship of tangible assets, oversees operations and ensures efficient and appropriate use of resources, legal compliance and fiscal accountability. Fiscal Implications No fiscal impact at this time. However, future decisions by the Council regarding the Street Lighting Utility Fund will significantly influence the short- and long-term sustainability of these enterprise funds. These decisions will also affect the availability of funding for capital infrastructure maintenance and replacements, which are critical to ensuring the ongoing reliability and effectiveness of these utilities. Policy Street lighting are essential services, contributing to safety, community well-being, and overall quality of life and aligns with Critical Success Factors – City Services. Public Process The anticipated schedule for adoption of 2026 Street Lighting and Storm Water Utility Rates is as follows: Audit and Investment Commission – Street Lighting Utility Rate January 29, 2025 Primer Audit and Investment Commission – Street Lighting and Storm March 21, 2025 Water Utility Rate Study – Recommendations City Council Workshop No. 1 – Street Lighting Utility Rate Primer April 2, 2025 City Council Workshop No. 2 – Street Lighting Utility Rate Structure April 16, 2025 and Storm Water Utility Rate Discussion City Council Workshop No. 3 – Street Lighting and Storm Water May 28, 2025 Utility Rate – Final Discussion Minimum of 5 months for utility billing changes, verification, back June – December 2025 testing, and implementation for any new rate structure changes Authorize use of Consulting Geographic Information System (GIS) June 2025 Services and Amend Budget Final Adoption of utility rates and fees for 2026 December 2025 Implementation of new rates January 1, 2026 Background In 2024, the City initiated a Street Lighting and Storm Water Utility Fund Rate Study to assess the long-term adequacy of the funds in supporting both operating and capital expenditures. The rates for the Street Lighting Utility Fund, in particular, had not been evaluated for over a decade and had seen minimal changes despite rising costs due to inflation and aging infrastructure. 1 Items marked “fiduciary” are primarily business-oriented topics; “strategic” items are primarily related to long- term strategies or goals; and “generative” items are primarily meant to produce new thoughts or ideas. Council Workshop Letter 25-128 May 28, 2025 Page 3 This prompted the need for a comprehensive review to address financial sustainability and operational challenges. As the PMT evaluated the existing methodology, it became evident that the Street Lighting Utility Fund required a complete overhaul. The current rate schedule was overly complex, inequitable, and difficult to explain. Furthermore, there was no asset management or recapitalization plan in place to account for rising energy costs or the long-term replacement of infrastructure. This gap underscored the need for a new, sustainable funding methodology that addresses both equity and the full lifecycle of the utility’s assets. On January 29, 2025, and March 21, 2025, staff presented to the Audit and Investment Commission an outline of the current rate structure, a proposed new rate structure, and requested input on a new Council Directive to memorialize methodology and assumptions for funding street lighting. Recommendations and input from the Audit and Investment Commission informed the Council at the April 16, 2025, City Council Workshop Meeting. City Council Workshop – Meeting No. 1 On April 2, 2025, staff presented to the Council on the Street Lighting Utility Fund. This initial meeting outlined the challenges with the existing rate structure and emphasized the need for a fundamental shift in methodology. City staff presented three different “philosophical” options that provided the foundation for a long-term, sustainable, and transparent funding approach that ensures fairness, equity, and proportionality. The three different options included: Category Option No. 1 3 Option No. 2 Option No. 3 Residential 2 New Uniform Rate New Uniform Rate New Uniform Rate Rural Estate and N/A New Uniform Rate Percent of REU based Urban Reserve 2 Rate 1 Commercial, N/A REU based Rate1 Percent of REU based Public/Semi-Public Rate 1 Agricultural N/A N/A N/A Notes: 1. An Residential Equivalent Unit (REU) is a standardized measure representing the typical benefit a single-family residential property receives from intersection lighting. This unit serves as the baseline for determining rates across all property types. 2. Residential Properties: One Residential Equivalent Unit (REU) is defined as a single- family residential lot or the number of dwelling units per property. 3. Option No. 1 most closely matches the current rate structure, Option No. 2 defines all properties by the number of REUs and allocates accordingly, Option No. 3 recognizes the reduced number of adjacent streetlight intersections and/or internal lighting of commercial, public/semi-public properties. The Audit and Investment Commission reviewed the draft Street Lighting Utility Capital Asset Funding and Reserve Policy and provided the following feedback:  One member suggested the City evaluate an official “DarkSky” (https://darksky.org) approach to street lighting. Staff believes this is a valuable idea for future consideration through the Environmental Stewardship Strategic Initiative Implementation Plan. Council Workshop Letter 25-128 May 28, 2025 Page 4  They requested greater clarity regarding the treatment of Rural Estate and Urban Reserve properties, emphasizing that these should each be considered one Residential Equivalent Unit (REU).  One member requested additional analysis to determine a more precise percentage of shared lighting usage across Rural Estate, Urban Reserve, Commercial, Public, and Semi-Public properties.  A minority of the Commission recommended increasing the REU percentage assigned to Commercial, Public, and Semi-Public properties, noting that these entities may be better positioned to absorb higher rates. In response to this input, staff revised the draft policy to clarify that Rural Estate and Urban Reserve properties are each counted as one REU. After evaluating the feasibility of conducting a detailed lighting usage study, staff concluded that such a study is not practical or feasible. Instead, staff recommends assigning 25 percent to 50 percent of one REU to Commercial, Public, and Semi-Public properties, striking a balance that supports fairness, equity, and transparency in cost distribution. City Council Workshop – Meeting No. 2 On April 16, 2025, staff and Jeanine Kuwik, Vice Chair of the Audit and Investment Commission, presented recommendations on a new rate structure methodology. Council was asked to approve a philosophical approach to structuring street lighting rates and review the “draft” Council Directive on the Street Lighting Utility Capital Asset Funding and Reserve Policy (attached), which assumed the staff and Audit and Investment Commissioner recommended rate structure approach.  Council Members requested staff to evaluate including apartments, stacked housing, condominiums, and other higher-density housing as one Residential Equivalent Unit (REU). Staff reviewed the preliminary rate model and found that removing commercial acreage and adding stacked housing units (like condos and apartments) would roughly change the quarterly fee by approximately $0.75 cents. Properties with higher‑density housing would pay a little more per quarter than lower‑density properties of the same size. Written By: Chris Hartzell, Engineering Director Kristin Seaman, Environmental Resources Coordinator Approved Through: Clinton P. Gridley, City Administrator Attachment: Draft - Street Lighting Utility Capital Asset Funding and Reserve Policy Presentation Adopted: XX-XX-XX Number: CD-FIN-5.15 Revised: Mayor: City Administrator: For: Finance COUNCIL DIRECTIVE Subject: Draft - Street Lighting Utility Capital Asset Funding and Reserve Policy Purpose The purpose of this policy is to establish a long-term, sustainable, and transparent funding approach for the Street Lighting Utility Fund that ensures fairness, equity, and proportionality. The funding model emphasizes a benefit-based allocation rather than direct consumption to ensure all properties contribute equitably to intersection lighting costs. The Street Lighting Utility Fund operates as a self-sustaining enterprise, maintaining sufficient reserve balances to address unexpected maintenance needs. It remains separate from other government funds and is dedicated solely to street lighting services. This policy ensures the long-term sustainability, equity, and financial responsibility of the Street Lighting Utility Fund while providing clear guidance on rate allocation, reserve management, and infrastructure renewal. Policy The following policy considerations apply: A. Equitable – The rate structure should ensure that all properties pay fairly and equitably based on a defined contribution to intersection traffic and safety needs. B. Sufficiency – The funding model provide stable, predictable revenue for ongoing maintenance, of the lighting system and cost of energy to light intersections and traffic signals. C. Public Transparency – The rate structure shall be simple, defensible, and clearly communicated to residents and businesses. D. Reserve Management – The City shall maintain adequate reserves to support long-term asset management and financial stability. The Chief Financial Officer and Budget Manager will conduct an annual analysis of reserve balances, with adjustments directed by the City Council as necessary. Procedure Since street lighting benefits all properties indirectly by improving safety and accessibility throughout the community, the rate structure will provide the foundation upon the determination of what properties benefit and to what degree. Council Directive CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy Page 2 of 4 The following general framework shall be utilized for allocating street and signal lighting rates: STREET LIGHTING RATE STRUCTURE Definition (as per the City’s Comprehensive % of Category Plan) REUs 1 Single-family homes, twin-homes, quad homes, townhomes, detached townhomes, carriage homes, etc. This can be a Residential 2 combination of multi-family residential, mixed residential, 100% and medium-density housing. Rural Estate, Urban Low-density and larger lot residential areas outside urban and Reserve, and Non- suburban cores and residential neighborhoods without 33% lighted Residential neighborhood lighting. Neighborhoods 2 Commercial: Includes commercial, 3M Site, Industrial, Mining, Places to Work, Places to Shop, City Center, and Mixed Use. Commercial, Public / Public / Semi-Public: Defined in the City’s Comprehensive Semi-Public, Plan. (e.g. City buildings, churches, schools, Central Park, 33% Apartments / Washington County Service Center, etc.) Condominiums3 Apartments: Stacked housing, condominiums, apartments, higher-density housing, etc. Agricultural Land exclusively used for agricultural purposes. N/A Notes: 1. A Residential Equivalent Unit (REU) is a standardized measure representing the typical benefit a residential property receives from intersection lighting. This unit serves as the baseline for determining rates across all property types. 2. Residential Properties: One Residential Equivalent Unit (REU) is defined as a single- family residential lot or the number of dwelling units per property. This section includes all Residential, Rural Estate, and Urban Reserve properties. 3. Commercial, Public/Semi-Public Properties, Apartments: REUs are assigned based on developable acreage, calculated as 1 REU per 0.25 acres. 4. In cases involving unique land uses or circumstances not contemplated within this policy, the Chief Financial Officer/Controller and the Engineering Director or successors shall jointly determine the most appropriate number of Residential Equivalent Units (REUs) per property, with the goal of ensuring transparency and consistency. These decisions will be documented and recorded in the utility billing system notes. CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy Council Directive CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy Page 3 of 4 Asset Management & Renewal Policy Streetlights are a physical asset that represents a long-term investment and service commitment to ensure that intersections are lit to provide safe travel to and from neighborhoods, business, and destinations outside the community. The City’s street lighting system and energy for signals are provided by Xcel Energy and regulated through the Public Utilities Commission. The City funds intersection lighting through two mechanisms: 1. Standard Rate: Covers both energy costs and capital replacement, ensuring continuous system renewal. Available Xcel Energy outdoor lighting options under this rate plan are LED luminaire Traditional and Cobra styles and Style A poles at the time of enactment of this Council Directive. 2. Pre-Pay Rate: Requires upfront capital funding (often via the development process), resulting in lower ongoing rates until the 25-year maintenance agreement expires, after which the City assumes financial responsibility. Available Xcel Energy outdoor lighting options under this rate plan are LED luminaire Traditional, Acorn, Lantern, Cobra, Contemporary, Modern, and Evans styles and Style A, B, C, and D poles at the time of enactment of this Council Directive. For both payment structures, Xcel Energy maintains and operates the street lighting system. 1. Xcel Energy Rate Structure: The City does not have the staffing capacity to establish a street lighting maintenance division that operates and maintains a city-wide streetlight system. Therefore, the City intends to continue to utilize the standard and pre-pay rate system established by the Public Utilities Commission and their agreements with Xcel Energy. With new development, LED luminaire and pole styles shall generally be consistent with neighboring developments. Upon expiration of pre-pay agreements and streetlight systems require replacement, the City will transition affected streetlights to the standard rate structure (with available led luminaire and pole styles consistent with adjacent properties), with Xcel Energy handling ongoing renewal and maintenance thereafter. 2. Capital Replacement Lifecycle: The prediction of life cycles for street lighting varies from 25 – 35 years, depending on materials, exposure to elements, and other environmental factors. The recommended replacement renewal cycle shall be planned for 26 – 30 years for capital planning purposes. Xcel Energy will determine when an individual streetlight or grouping of streetlights require a “new” maintenance agreement following the 25-year initial maintenance period. Reserve Balance Policy The Streetlight Utility Fund target reserve levels are listed below: CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy Council Directive CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy Page 4 of 4 1. Operating Reserve: This reserve provides working capital for the estimated cost of energy, day-to-day operations, and necessary minor capital asset replacements based on the anticipated life-cycle described herein. The operating reserve will be funded at a target level equal to 90 days of operating expenses from the following year’s adopted budget for the Street Lighting Utility Fund. 2. Renewal and Replacement (Capital Asset) Reserve: All the pre-pay street lighting system assets represent a liability as they will eventually need to be replaced following the 25-year maintenance agreement with Xcel Energy. This liability grows continuously as construction costs increase over time and the system expands as the City grows. The purpose of this policy is to establish a reinvestment approach that provides a predictable and stable source of funding for renewal and replacement of capital assets. This approach sets aside cash in the amount equal to the City’s annual depreciation for the pre-pay street lighting system and the annual cost of energy to streetlights and signals. This approach uses the pay-as-you go strategy for system renewal and replacement needs. Each budget year, a specific dollar amount will be budgeted for one year’s worth of depreciation and funded through the utility’s rate structure. The goal is that the utility will generate enough surplus cash to fully fund the utility’s long- term system and capital replacement needs. 3. Debt Service Reserve: This reserve provides a means of protecting against the risk of nonpayment of debt. The City will maintain this reserve to be in compliance with the existing bond covenants at the time the annual budget and rate setting process begins. The debt service reserve will be funded at a target level equal to the following years principal and interest amount. The reserve calculation will include debt supported by the Street Lighting Utility Fund and accounted for through transfers to other funds. Debt Utilization and Considerations - Debt may be used to fund large capital expenditures or a portfolio of projects that have a life greater than 15 years and a minimum cost greater than two million dollars. Reserve Replenishment Reserve levels will be reviewed and adjusted annually as part of the budget and rate-setting process. Since expenses increase over time, rates may include incremental adjustments to maintain adequate reserve funding. Adopted by the Woodbury City Council on: Month Day, 2025 – Resolution No. 25-XX CD-FIN-5.15 Street Lighting Utility Capital Asset Funding and Reserve Policy

Get email alerts for Woodbury

A daily email when new agendas and minutes are posted.

Report an issue with this meeting