A primary focus of the meeting was the planning and development of the Fisher property, a site poised to accommodate a blend of residential and commercial developments alongside essential city infrastructure. Brian Harris, a consultant, presented two potential site plans for the property. The first concept outlined a vision for higher density housing, such as market rate apartments or senior living facilities, coupled with a satellite water treatment facility. This arrangement would include a 20,000 square foot building and a clear well site, strategically separated from public access to ensure safety and operational efficiency.

The second concept proposed variations aimed at balancing residential and commercial opportunities while minimizing the footprint required for the water treatment facility. Harris emphasized the need for commercial developments to be destination-based due to limited access, which would require careful consideration of traffic flow and site accessibility. Council members engaged in a discussion regarding the allocation of space for public works storage, a concern stemming from the loss of two acres of land at the city’s public works site. There was consensus on the importance of retaining some commercial presence within the development to potentially include a destination event center, highlighting the need to balance city services with economic development.

Concurrent with the Fisher property discussions, the council revisited the pressing topic of expanding the city’s water treatment capacity to meet future demands. A study conducted in 2022 identified three alternatives: expanding the existing plant, constructing a new satellite facility on the Fisher property, or implementing a bypass system for untreated water. Given the city’s anticipated growth, the current treatment capacity of 26.5 million gallons per day is projected to suffice only until around 2030, necessitating an additional 6.6 million gallons per day to accommodate a target population of 85,000.

The satellite plant option garnered attention for its potential to provide redundancy and operational flexibility, thus ensuring continuity of service during maintenance or emergencies. Cost estimates placed the expansion of the existing facility at $26 million, the construction of a new satellite plant at $44 million, and the bypass option at $17 million.

Council members expressed concerns about the financial implications of these projects, particularly in terms of engineering and contingency costs, which included a notable $8.5 million allocation for contingencies. Discussions underscored the importance of leveraging innovative water management practices and public awareness to potentially stabilize consumption patterns and mitigate the need for immediate expansion.

The council’s deliberations also touched on budget considerations for the coming years. Projections for the 2024 budget include a 5.5% increase in taxable market value, with a proposed 7% property tax levy increase to support the general fund and building fund. The anticipated rise in the median home value to $468,000 could result in a property tax increase of approximately $61 per year for homeowners. Property taxes are expected to comprise about half of the general fund’s revenue, with additional income anticipated from licenses, permits, and the SAFER grant for fire services.

A notable point of discussion was the impact of the new Minnesota Paid Leave Act, which introduces an estimated cost of $100,000 to the general fund. The council is strategizing to build a fund balance through the SAFER grant.