The most pressing topic was the proposed senior housing project, which became a focal point of debate among council members and residents. The development company Valayer plans to purchase property for constructing affordable senior housing, seeking the city’s support to apply for state bonding. The project is anticipated to generate $70,000 to $80,000 in property taxes with no financial risk to the city, as Valayer would cover all legal fees. However, the project sparked concerns about its age restrictions, which mandate that all residents be 50 years or older. This stipulation prompted a council member to question its potential restrictiveness and implications under the Fair Housing Act, noting that federal guidelines typically allow 80% occupancy by residents aged 55 and older.

Another council member expressed reservations about the developer’s criteria, particularly its requirement that residents demonstrate the ability to live independently. The discussion illuminated a tension between maintaining standards for independent senior living and accommodating broader community needs, as many seniors prefer housing options that allow family proximity and support. A council member highlighted the desire for flexibility in housing arrangements, suggesting that rigid restrictions might unfairly exclude potential residents, particularly those from multigenerational households.

Despite these concerns, the urgency of moving forward with the development to secure necessary funding through bond inducements was acknowledged. A consensus emerged about the importance of addressing the market demand for affordable senior housing, with the council ultimately voting four to one in favor of the bond inducement resolution.

The council also tackled the 2026 budget, which was unanimously approved. The budget reflects an increase in general fund revenue by 2.76% and a proposed tax levy rise of 3.88%, aimed at funding essential city operations and projects. Notably, the budget accounts for significant contract increases for police services, which rose by 8.6%, and includes expenditures for community park renovations, a new electronic sign for city hall, and improvements to public works equipment. Additionally, the budget supports planning consultants for the redevelopment of the Les Bolstead Golf Course and allocates increased funding for youth services.

A public hearing on the 2025 Truth in Taxation and budget presentation outlined the budget’s impact on the tax levy. The median property value in Falcon Heights is around $411,000, and legislative changes have raised the market value exclusion limit to $517,000, affecting tax calculations. The council aimed to maintain one of the lowest levy recommendations in Ramsey County, with ad valorem taxes rising by 5.4%.

During the meeting, a resident named Jim Logan clarified that property tax challenges should focus on property valuations rather than taxes themselves, with notices expected in the spring pertaining to 2027 payable taxes. The council acknowledged the importance of transparent communication regarding tax notices and expressed gratitude for the staff’s effort throughout the budget process.

The council also addressed a pay plan for city employees, introduced with a total cost of $38,000 for the year. The plan, developed with input from employees and supervisors, aims to keep Falcon Heights’ pay competitive with comparable cities. A motion to adopt the pay plan was made and passed unanimously.

Another agenda item was the adoption of Ordinance 2508, which proposes increasing future mayor and city council pay effective January 1, 2028. Council pay has remained unchanged since 1993, and the mayor’s pay since 1999. The proposed increase would raise council pay to $400 per month and the mayor’s pay to $500 per month, emphasizing the need to address pay more frequently to reflect cost-of-living adjustments.

Additionally, the council discussed amendments to city code regarding massage therapist licensing, necessitated by a new state statute requiring fingerprinting and background checks. The city aims to ensure compliance while processing licenses for massage establishments in 2026, addressing human trafficking concerns and ensuring thorough vetting of applicants.

The Environment Commission outlined goals for 2026, including a sustainability fair and efforts to identify invasive plant species. The Community Engagement Commission reported on events focused on food insecurity, and plans for future low-cost community events were discussed. The council recognized the contributions of Northeast Youth and Family Services, a longstanding community resource, and praised Public Works for effective snow removal.

In closing, the council addressed concerns about the Luther Seminary development, which has garnered significant feedback from residents in neighboring areas about potential traffic impacts. Residents urged the council to advocate for an independent traffic study and explore alternative traffic routes to mitigate density concerns.