One of the most critical items on the agenda was the approval of Lake Minnetonka Flats, a development project involving the construction of 12 townhome-style units across three two-story buildings at 2400 and 2420 Commerce Boulevard. This project includes underground parking and a shared Homeowners Association (HOA) dock arrangement. The site spans 7.9 acres and faces challenges due to wetland areas and a narrow layout necessitating a 50-foot setback from the ordinary high water level.

The planning consultant explained that the design aligns with the mixed-use district goals, supporting various uses while adhering to density guidelines of 8 to 15 units per acre, with a proposed density of 9.2 units per acre. The consultant emphasized the complexities of the site, highlighting the project’s conformity with Planning Commission discussions despite changes in dock arrangements due to external agency consultations.

The project’s unique design and proximity to wetlands and the lake shaped the planning and approval process. A motion to approve the major subdivision preliminary plat and a conditional use permit for the project passed unanimously.

The council also tackled budgetary matters, including the 2025 preliminary general fund budget and the special benefit levy for the Housing and Redevelopment Authority (HRA). The finance committee presented the budget timeline, emphasizing a 6% increase in the preliminary levy to $8,286,194, compared to the previous year’s 15% increase. This increase aims to provide flexibility for final decisions in December, as the preliminary levy cannot exceed the final amount.

The general fund covers essential city services like police, fire, parks, and administration, funded by taxes, licenses, permits, and intergovernmental aid. A significant issue was the loss of local government aid (LGA), which had decreased from approximately $400,000 to zero over the past six years. Despite receiving a one-time public safety grant of $412,000 the previous year, the city is preparing for a future without LGA, projecting a 94% reduction in intergovernmental aid.

The council discussed building capital reserves to reduce reliance on future debt and the importance of strategic financial planning. The proposed preliminary general fund budget of $6,914,382 received unanimous approval.

Another notable topic was the proposed development on Second Street, which raised concerns about parking availability. A council member expressed discomfort with the project’s reliance on a single parking spot at the end of a shared driveway, highlighting the need to avoid “unintended consequences” related to parking issues. Carl, a co-developer, explained the site’s unique challenges, including a steep driveway deemed unsafe, leading to a reduction in parking space. The project team aimed to create a safe driving experience while accommodating deliveries and temporary guest parking.

The discussion included comparisons with other local developments and the potential for additional visitor parking agreements. The council expressed a mix of opinions, with some members comfortable with the current parking design due to nearby alternatives and adherence to city codes. Ultimately, the council approved the major subdivision preliminary plat and a conditional use permit for Lake Minnetonka Flats without opposition.

The meeting also addressed the integration of a new utility billing system called Invoice Cloud, which will expand service offerings to utility customers. This platform allows for personalized account access, automated messages, and various payment options. The transition to Invoice Cloud is expected to incur an estimated increase of $188,000, but efficiencies could be realized with the added services. The finance committee recommended covering transaction fees for recurring payments to encourage participation, while one-time payments would incur charges. A motion to approve a three-year contract with Invoice Cloud passed positively.

Concerns were raised about the $1.95 auto-pay setup fee for residents, with some members uncomfortable with the city absorbing this cost. Discussions included the potential annual impact of this fee, with one member noting it could approach $32,000 if all residents opted in. Ultimately, the council agreed that residents opting into the auto-pay system would incur the fee, but traditional payment methods would remain available.

Lastly, the council discussed improving communication methods, particularly regarding water maintenance alerts. Despite efforts to disseminate information through various platforms, residents still complained about not receiving notifications. The council considered more direct communication methods, such as sending postcards, to ensure residents are informed about upcoming maintenance. The conversation included suggestions for detailed post-event information to educate residents about routine maintenance processes.