A discussion on future cannabis regulations took center stage, as the council examined a model ordinance from the Office of Cannabis Management. Cities must decide whether to retain local authority for registering cannabis businesses or delegate this to Carver County. The ordinance mandates at least one cannabis business per 12,500 residents, with flexibility for more if desired. Key considerations included buffer zones prohibiting cannabis retail near schools, daycares, and parks frequented by minors, with clarification sought on whether regional trails fall under such attractions.

The council debated zoning classifications for cannabis-related activities, proposing that cultivation be limited to agricultural and certain commercial zones. A suggestion was made to use interim permits for cannabis businesses, allowing reevaluation if ownership changes. Additionally, the council considered setting operational hours from 9:00 AM to 9:00 PM, though state law permits longer hours. The discussion also touched on regulating lower potency hemp edibles, with the council prompted to decide on necessary controls, particularly since these products are currently available in liquor stores. The ordinance will proceed to the Planning Commission for review, with a proposal expected by early 2024.

Turning to financial matters, the council reviewed utility rates, focusing on maintaining stability for residents as water debt decreases and wastewater treatment costs rise. The council explored a strategy to keep rates flat until 2027, when a 25% decrease in debt is anticipated. For a household using 6,000 gallons, the bill is projected to change slightly from $133.17 to $134.30. Discussions emphasized balancing water rate reductions with necessary sewer rate increases to avoid sudden utility bill spikes.

The council also examined the financial status of various funds, noting a projected $200,000 surplus in the general fund for 2024, attributed to increased building permit activity and rectified cell tower rent calculations. However, the sewer fund faces a predicted deficit due to engineering costs for the wastewater treatment facility, despite decreased expenses for chemicals and electricity.

A presentation on the school district’s financial challenges highlighted reliance on state funding, which accounts for 70% of district resources but has not kept pace with inflation. Voter-approved levies cover 10-15% of the budget, with a successful levy in 2019 providing $492 per student. The district’s recognition as the 25th best public school in Minnesota was noted as a community pride point, encouraging broader promotion of its achievements.

The meeting also featured updates on district performance and infrastructure improvements, including enhanced parking lots and sidewalks funded by abatement bonds. Chronic absenteeism emerged as a concern, with plans to reduce rates by 4% and bolster early intervention strategies. The district reported a 5.5% increase in MCA reading scores and nearly 10% growth in math, credited to effective educational strategies.

Lastly, the council formalized a 2025 prosecution contract with Carver County, continuing its approach to handling lower-level offenses. The contract includes a slight reduction in fees. Specialized programs like veterans court and drug treatment court were highlighted for reducing recidivism through intensive support and accountability.