Mound OKs preliminary levy, housing project

The Mound City Council approved the 2025 preliminary city budget and tax levy at its Sept. 24 meeting, setting it at just over $8.2 million—a 6 percent increase from the previous year.

Maggie Reisdorf, deputy city manager, highlighted in her presentation that the 2025 preliminary budget is based on the city’s long-term financial management plan and utility rate study facilitated by Ehlers, a municipal advisory firm, that were both completed earlier this year

The most notable revenue change in the budget is the elimination of Mound’s Local Government Aid (LGA) from the State of Minnesota in 2025. Reisdorf noted that LGA has declined sharply over the last few years, from over $400,000 in 2020 to just under $75,000 in 2024, due to Mound’s faster-than-average tax capacity growth compared to the statewide average, making it unlikely these funds will be reinstated.

The city’s 2024 revenues also included a one-time $412,000 public safety grant, which will not be available in 2025 and beyond.

The city will see $142,000 in expense relief as a result of Hennepin County taking responsibility for assessor fees, which were previously paid annually by the city.

Reisdorf also explained that the city is focused on building its capital reserves to rely less on debt issuances in the future, especially as some of the city’s previous debt is falling off the books.

In a related item, the council approved a Housing and Redevelopment Authority (HRA) levy not to exceed $250,000 to help fund the municipally-owned portions of the Harbor/Transit District. The HRA budget is a special revenue fund that has been established for the Harbor/Transit District’s routine care and long-term maintenance. These are costs that go above and beyond the debt service requirement for the transit center bonds.

The city will adopt the final levy, budget, and fee schedules during its Truth in Taxation hearing on December 10. Under Minnesota state law, the final levy amount must be equal to or lower than the approved preliminary levy, meaning there is still an opportunity for the levy to decrease.

During budget discussions, the council also approved a contribution of $500 per month to the Gillespie Center, totaling $6,000 annually, along with city resources to support its marketing efforts. While this amount is significantly less than the previous annual contract of $60,000 that ended in 2021, it represents an increase from recent years when no funding was provided.

In other news, the council has granted approval for a major subdivision preliminary plat and conditional use permit for the Lake Minnetonka Flats project at the property located at 2400-2420 Commerce Boulevard. The council was first introduced to the project at its May 28, 2024 meeting.

Rita Trapp, city planning consultant, explained to the council that developers Jim Gooley and Carl Runck have put forth a proposal for a 12-unit condominium project that offers scenic views of Lost Lake. Designed for owner occupancy, the units will be spread across three two-story buildings, each housing four units and featuring underground parking.

In addition, the developers envision a shared dock arrangement with the neighboring property, which will undergo separate review by the appropriate agencies.

In response to concerns from the Planning Commission regarding the absence of onsite overnight visitor parking—particularly given that on-street parking is not permitted during winter months—the developers confirmed they have entered into an agreement with the Gillespie Center for six visitor parking spaces. This agreement was made as part of the conditions for approval.

During the council discussion, Council Member Kathy McEnaney indicated that she was still not comfortable with the amount of visitor parking, despite the arrangement with the Gillespie Center and project meeting city code. The final vote was 2-1.

Another action item for the council involved approving Invoice-Cloud (I-Cloud) as an alternative utility bill payment option to the city’s current provider, OPUS21. This service features an online customer portal and provides residents with various payment options, allowing them to pay their water, sewer, and stormwater bills using credit card, debit card, ACH, and digital wallet methods for a nominal fee.