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08/11/2015 - City Council SpecialMINUTES SPECIAL CITY COUNCIL MEETING AUGUST 11, 2015 5:30 P.M. EAGAN MUNICIPAL CENTER City Councilmembers present: Mayor Maguire, Councilmembers Bakken, Hansen and Tilley. Councilmember Fields arrived at 5:40 p.m. City staff present: City Administrator Osberg, Director of Finance Pepper, Assistant Finance Director Feldman, Director of Community Development Hohenstein, Director of Parks & Recreation Johnson, Public Works Director Matthys, Transportation Operations Engineer Plath, Police Chief McDonald, and Fire Chief Scott. ROLL CALL AND ADOPTION OF THE AGENDA Councilmember Tilley moved, Councilmember Hansen seconded a motion to adopt the agenda as presented. Aye:4 Nay:0 VISITORS TO BE HEARD There were no visitors to be heard. SHORT TERM RENTALS IN RESIDENTIAL NEIGHBORHOODS Mayor Maguire noted tonight's discussion is follow up on research that the Council asked staff to provide regarding short term rentals. For purposes of the discussion, short term rentals are defined as those for less than 30 days at a time. This topic is before the Council at this time, in part, because a residential property owner in Eagan has expressed interest in offering short term rentals of a part of their home. Maguire noted this agenda item is intended for discussion of the activity generally and not the application in particular. Community Development Director Hohenstein provided background information noting the public policy questions and practical issues. He noted that rentals of less than 30 days at a time are considered a commercial use, which are only permitted in certain commercial zoning districts under the City Code. Sharon Hill, City Attorney, was available for questions. The Council discussed at length short term rentals in residential neighborhoods and touched on the policy questions. After further discussion it was the consensus of the Council to not move forward with an ordinance amendment to allow short term rentals of rooms or portions of homes in residential neighborhoods. The Council took a 10 minute break. Special City Council Minutes August 11, 2015 Page 2 ANALYSIS OF COST TO PLOW ALL CITY TRANSPORTATION TRAILS AND IMPACT ON SERVICE LEVELS Public Works Director Matthys introduced the item and gave an overview on the analysis of options to provide winter trail maintenance on all city transportation trails. The Council discussed the proposed options. Mayor Maguire suggested getting input from residents by asking a question regarding winter trail clearing on the next community survey. After further discussion it was the consensus of the Council not to modify the Winter Trail Maintenance program and Snow and Ice Control Policy. GENERAL FUND BUDGET PRESENTATION City Administrator Osberg introduced the item noting Council will be reviewing the preliminary 2016 General Fund operating budget, the proposed property tax levy and public policy questions. Any modifications to the proposed levy and budget will be presented to the Council at the September 1, 2015 regular City Council meeting. Osberg provided additional background pertaining to the preliminary general fund budget and related tax levy. Osberg noted formal action on the levy and the preliminary 2016 General Fund Budget are scheduled for the regular City Council meeting on September 1. The final levy certification and budget action is scheduled for the December 15, 2015 regular City Council meeting. The final Property Tax Levy that is due at the County no later than December 28 can be decreased but cannot be increased from the preliminary certification. Osberg provided additional background pertaining to the proposed increase in the General Fund expenditure budget. Osberg added the proposed General Fund Budget reflects an increase of 2.75 percent over the 2015 budget. Osberg provided an overview of the proposed General Fund Budget as it relates to specific departments and operations, and summarized the public policy issues for the City Council's consideration. Finance Director Pepper provided additional background pertaining to the preliminary general fund balance, market value and tax capacity, and local tax capacity trends. The City Council discussed the proposed 2016 budget and the proposed payable 2016 Property Tax Levy. There was Council consensus that the budget level at a 2.75 percent increase was appropriate. There was Council consensus that the proposed department budget items were appropriate. There was Council consensus that the proposed total tax levy of 4.9% was appropriate. There was Council consensus that the allocation of the preliminary tax levy was appropriate. Osberg noted Dakota County is holding its Truth -in Taxation hearing December 1St. In the interest of avoiding a scheduling conflict with the City's Truth -in -Taxation hearing, it is proposed to be rescheduled from December 1 to November 30, 2015. There was Council consensus to reschedule the December 1, 2015 regular City Council meeting to Monday, November 30, 2015. Special City Council Minutes August 11, 2015 Page 3 There was Council consensus to produce and cabiecast live in late fall another virtual budget open house modeled after the same format as 2014. There was no other business to be heard. OTHER BUSINESS ADJOURNMENT Councilmember Tilley moved, Councilmember Bakken seconded a motion to adjourn at 8:45 p.m. Aye:5 Nay:0 E 1, VV. A+ City Clerk