HomeMy WebLinkAboutCC MINUTES 071420261
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CITY OF ST. ANTHONY
CITY COUNCIL REGULAR MEETING MINUTES
JULY 14, 2026
I. CALL TO ORDER.
Mayor Webster called the meeting to order at 7:00 p.m.
II. PLEDGE OF ALLEGIANCE.
Mayor Webster invited the Council and audience to join her in the Pledge of Allegiance.
III. ROLL CALL.
Present: Mayor Webster, Councilmembers Lona Doolan, Jan Jenson, Nadia Elnagdy, and
Thomas Randle.
Absent: None.
Also Present: City Manager Charlie Yunker, Assistant City Manager Ashley Morello, Retail
Operations Manager Dave Anglum, and Finance Director Deborah Maloney.
Others Present: Redpath CPA Andy Hering.
CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE
FOLLOWING ITEMS.
IV. APPROVAL OF JULY 14, 2026, CITY COUNCIL MEETING AGENDA.
Motion by Councilmember Doolan, seconded by Councilmember Elnagdy, to approve the City
Council Meeting Agenda of July 14, 2026, as presented.
Motion carried 5-0.
V. PROCLAMATIONS AND RECOGNITIONS — NONE.
VI. CONSENT AGENDA.
A. Approve June 23 2026 Council Meeting Minutes.
B. License and Permits.
C. Claims.
D. Resolution 26 047 Accepting Grants And Donations Received In The 2nd Quarter Of
2026.
E. Resolution 26 048 Authorizing Staff To Accept Contract For Security Upgrades At
MarkgVlace Retail Store.
F. Resolution 26 049 Approving An Exempt Gambling Permit For The International
Union Of Operating Engineers Local 49 At 2829 Anthony Lane South.
City Council Regular Meeting Minutes
July 14, 2026
Page 2
1 Motion by Councilmember Doolan, seconded by Councilmember Randle, to approve the
2 Consent Agenda items.
3 Motion carried 5-0.
4
5 VII. PUBLIC HEARING - NONE.
6
7 VIII. REPORTS FROM COMMISSION AND STAFF — NONE.
8
9 IX. GENERAL BUSINESS OF COUNCIL.
10
11 A. 2025 Finance Audit.
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13 Mayor Webster welcomed Andy Hering from Redpath to review the 2025 Finance Audit.
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15 Mr. Hering stated that Redpath completed the City's financial audit on June 24a'. He presented
16 information on the results of their audit. He began by reviewing the reports that Redpath issues
17 relating to an audit. The first report he reviewed was the independent auditor's report on the
18 financial statements, which noted that the audit is conducted to detect material misstatements. He
19 stated that the result of this report was an unmodified, or "clean," opinion, which is the highest
20 level of opinion. Mr. Hering then reviewed the report on internal controls, which provides an
21 overview of the City's financial policies and procedures. He noted that one internal control issue
22 was identified and labeled as a financial statement correction. He clarified that the audit
23 standards are high and that three corrections occurred during the audit: one relating to interfund
24 loan balances, one relating to salaries payable and prepaid expenses, and one relating to a new
25 assessment that should be recorded in the debt services fund rather than the capital project fund.
26 He stated that all these issues were addressed in the audit, but had to be reported because Staff
27 had not addressed them before the audit. Mr. Hering then reviewed the report on Minnesota legal
28 compliance. He reported one compliance finding related to a statute requiring invoices to be paid
29 within 35 days of receipt. He stated that two vendors and five invoices in total were within the
30 required timeframe. Mr. Hering stated that the final report reviewed new accounting policies
31 adopted in the year, of which there were none. He commented that this report also included a
32 review of their long-term debt and bonds payable, and that St. Anthony's is standard and below
33 required levels. He was pleased to report that no difficulties or disagreements were encountered
34 in the audit and that Staff were well prepared. He presented a financial overview of the general
35 fund and discussed the City's fund balance policy. Mr. Hering provided information on the
36 revenues and expenses of the City's water and sewer operations. He finished by presenting on
37 the liquor fund.
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39 Mayor Webster thanked Mr. Hering for his presentation.
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41 Councilmember Jenson thanked Mr. Hering for the thoroughness of Redpath's work and thanked
42 the Staff finance group for their good work on the audit. He asked City Manager Yunker and
43 Assistant City Manager Morello to share his thanks with their Staff.
44
City Council Regular Meeting Minutes
July 14, 2026
Page 3
1 Mayor Webster thanked Mr. Hering again and expressed her gratitude that the audit was clean.
2 She also appreciated the Finance Staff and recognized that Mr. Hering specifically mentioned the
3 good work of the St. Anthony Staff.
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Motion by Councilmember Elnagdy, seconded by Councilmember Randle, to approve the 2025
Finance Audit.
Motion carried 5-0
B. 2026 Retail Operations Mid -Year Report.
Mayor Webster welcomed Retail Operations Manager Anglum to present the 2026 Retail
Operations Mid -Year Report.
Retail Operations Manager Anglum provided an overview of mid -year highlights. He noted that
sales and profits are down, but that they are on target with the fund transfer. He commented that
the Marketplace remodel set back their profits and highlighted that a recovery plan is underway.
Retail Operations Manager Anglum provided a full mid -year financial spreadsheet with
expanded detail. He expressed hope that conditions would improve with the addition of the
cannabis store and the completion of the Silver Lake Village updates. He presented a category -
and -operation dashboard to inform the Council about which products were selling best. He stated
that current goals included increasing their selection while removing slow -moving products,
growing basket size, cross -merchandising, improving consumer solutions, enhancing retail
engagement, and focusing on customer service. Retail Operations Manager Anglum provided
information on customer and market trends, noting that alcohol spending is down but that
consumers are purchasing more expensive products in smaller packages. He commented that
ready -to -drink beverages are extremely popular and that non-alcoholic beverages are also driving
sales. He presented information about the renovations at The Muni at Marketplace, noting that
while they are open, more changes are coming. Retail Operations Manager Anglum updated the
Council on the cannabis store, stating that it is in progress but that there were setbacks related to
lighting. He stated that when security is in place, they will be able to submit their SOPS to obtain
their license. He specifically discussed the security update as well, commenting that this was a
large shift from previous establishments and noted that the organization they are looking to
partner with meets and exceeds regulatory standards at a reasonable price. He finished by
presenting an overview of their end -of -year plans, including opening the dispensary, completing
the Silver Lake Village remodel, expanding customer engagement, maximizing holiday sales,
and preparing the 2027 budget.
Councilmember Jenson asked if they are still waiting for the State to certify the setup of the
cannabis dispensary. Retail Operations Manager Anglum confirmed this. Councilmember Jenson
asked if there is a date for the survey. Retail Operations Manager Anglum stated there was not,
and informed him that they must submit their SOPS to the State when they feel prepared to open;
the OCM will then review them. If the OCM is satisfied, they will then conduct the on -site
survey during a 30- to 60-day window. Councilmember Jenson asked them when they will be
able to submit. Retail Operations Manager Anglum stated it would likely be in the next 10 days.
Councilmember Jenson asked if they would be able to sell in the next two to three months. Retail
City Council Regular Meeting Minutes
July 14, 2026
Page 4
1 Operations Manager Anglum confirmed this was his hope, but that there may be difficulties with
2 acquiring supply due to shortages.
4 Councilmember Doolan appreciated the refreshed reporting metrics and noted their clarity and
5 ease of understanding. She expressed confidence in Retail Operations Manager Anglum in his
6 new role.
7
8 Councilmember Doolan asked if the soft launch at Marketplace was successful and what was
9 learned from the event. Retail Operations Manager Anglum expressed his appreciation for the
10 City Staff. He stated that the soft opening went as expected and that, due to construction delays,
11 the date was not widely advertised. He noted that this led to a smaller event, but that sales
12 numbers are growing. Retail Operations Manager Anglum reported that all of the customer
13 feedback has been positive so far.
14
15 Councilmember Doolan asked when the grand opening will be. Retail Operations Manager
16 Anglum stated it will be July 19, from noon to four p.m., but that they will be open regular hours
17 before and after the events. He highlighted that there will be drawings, cupcakes, a specialty
18 THC beverage made for the event, unique inventory options, and more.
19
20 Mayor Webster thanked Retail Operations Manager Anglum for his detailed mid -year report.
21 She thanked him for all his hard work and enthusiasm for the new stores.
22
23 C. Resolution 26-050 - Approving An Interfund Loan Between The Liquor Fund And The
24 Cannabis Fund.
25
26 Mayor Webster welcomed Finance Director Maloney to the podium to present on Resolution 26-
27 050.
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29 Finance Director Maloney briefly provided an overview of the status of the cannabis dispensary
30 project. She informed the Council of the renovation and construction costs and provided a
31 detailed breakdown in the slides. She informed the Council that an interfund loan is needed
32 because startup expenses must be incurred before revenues are generated, and that the loan will
33 provide capital to complete the project and support initial operations. She stated that this will
34 help maintain the project timeline and financial stability, and that the loan amount will be
35 525,000 dollars. Finance Director Maloney informed the Council that this sum was reached by
36 evaluating costs for the dispensary renovation, inventory, and wages. She presented information
37 on the cannabis fund projection and noted that the projected numbers were averaged from
38 Anoka's data and adjusted to reflect St. Anthony's population and the dispensary's size. Finance
39 Director Maloney informed the Council of the loan repayment strategy, noting that repayments
40 will initially be made to the liquor fund in place of rent. After repayment of the loan, Staff will
41 re-establish an appropriate rental payment to the liquor fund. Finance Director Maloney finished
42 by expressing her support for approval of this resolution.
43
44 Mayor Webster thanked Finance Director Maloney for highlighting the calculation of the loan
45 amount and the repayment strategy.
46
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City Council Regular Meeting Minutes
July 14, 2026
Page 5
Councilmember Jenson asked whether the remaining liquor fund cash balance on the Renovation
and Construction Costs slide reflected the balance after renovation. Finance Director Maloney
stated this was the estimated amount. He asked why they would need to borrow additional funds
if the remaining balance was 812,500 dollars, which exceeds the recommended loan amount.
Finance Director Maloney stated that this was the liquor fund, which is separate from the
cannabis fund. She noted that the cannabis fund is negative because they have incurred costs
without currently turning a profit. She stated that the loan will be used to repay the liquor fund
for cannabis dispensary costs. Councilmember Jenson asked if this meant they would be
borrowing from themselves. Finance Director Maloney stated that they will.
Councilmember Doolan asked whether they would be transferring the loan from the $ 1.6 million
in the liquor fund. Finance Director Maloney stated that this is correct.
Councilmember Doolan asked how they will prioritize debt repayment, ongoing operations, and
the tax levy. Finance Director Maloney stated that the priority is to create a stable cannabis fund
and then repay the loan. She noted that the conservative approach is to repay the loan in 10 years,
but it is possible to repay it in less than a year.
Councilmember Doolan questioned the risk of delaying payments past the 10-year mark. Finance
Director Maloney stated there was little risk due to the strong current liquor fund.
City Manager Yunker stated that expanding into cannabis was experimental for St. Anthony, and
the City attempted to make as conservative investments as possible. He noted that they are not
using tax levy funds for this loan.
Motion by Councilmember Doolan, seconded by Councilmember Jenson, to approve Resolution
26-050 - Approving An Interfund Loan Between The Liquor Fund And The Cannabis Fund.
Motion carried 5-0
D. Resolution 26 051 - Approving The Use Of Marketplace Retail Store For A Special
Event On Julv 18, 2026.
Mayor Webster welcomed Retail Operations Manager Anglum back to present on Resolution 26-
051.
Retail Operations Manager Anglum presented information about the grand opening of The
Village Muni. He informed the Council that businesses in the area have been notified of the
event so they can prepare for increased traffic. He noted that they have contacted other City Staff
to bring Touch a Truck to the event and have firefighters on site with a truck. He expressed his
excitement for the event.
Mayor Webster appreciated Retail Operations Manager Anglum's deliberateness in inviting
other City departments to be a part of the celebration.
City Council Regular Meeting Minutes
July 14, 2026
Page 6
1 Motion by Councilmember Elnagdy, seconded by Councilmember Jenson, to approve
2 Resolution 26-051 - Approving The Use Of Marketplace Retail Store For A Special Event On
3 July 18, 2026.
4
5 Motion carried 5-0
6
7 X. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
8
9 City Manager Yunker reported that on July 10, Staff released the RFP for the 2050
10 Comprehensive Plan updates to solicit consultant proposals. He noted that a large theme from the
11 joint work session was community engagement. City Manager Yunker noted that the RFP
12 specifically requests that consultants provide ideas for a community visioning exercise.
13
14 Councilmember Elnagdy reported that from June 24 to June 26, she attended the League of
15 Minnesota Cities annual conference. She also attended the joint work session regarding the
16 Comprehensive Plan on June 30.
17
18 Councilmember Jenson noted he also attended the League of Minnesota Cities annual conference
19 from June 24 to June 26. He reported attending the Comp Plan kickoff on June 30 and the joint
20 work session on July 30. Councilmember Jenson attended a tour of a sustainable stormwater
21 management facility for the Highland Bridge district on July 10. He reflected on the impressive
22 facility.
23
24 Councilmember Doolan reported she also attended the League of Minnesota Cities annual
25 conference from June 24 to June 26 and appreciated the learning opportunities provided.
26 Councilmember Doolan stated she also attended the Comprehensive Plan joint work session on
27 June 30. Councilmember Doolan reported that she attended the MWMO Board meeting on July
28 14.
t
30 Councilmember Randle reported that he attended the joint work session with the Planning
31 Commission and the Parks and Environmental Commission on June 30 to discuss the Comp
32 Plan. Mayor Webster thanked him for facilitating the work session in her absence.
33
34 Mayor Webster reported that from June 24 to June 26, she attended the League of Minnesota
35 Cities annual conference. She also attended the Regional Council of Mayors meeting on July 13
36 to discuss challenges to cities and school districts.
37
38 XI. COMMUNITY FORUM.
39
40 Carl Neumann, a resident, yielded his time to Dr. Bibi Neumann.
41
42 Dr. Bibi Neumann, a resident, informed the Council of her educational history. She stated that
43 she offered her comments through an interdisciplinary lens encompassing psychology, law, and
44 many other fields. She questioned what the "resident -centered metric" was. She commented that
45 when the Council approves a Staff action or recommendation, the public record should show
46 how that decision was reached. Dr. Neumann asked that Staff judgment be visible so that
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City Council Regular Meeting Minutes
July 14, 2026
Page 7
residents can identify all relevant information associated with the decision. She noted that the
June 23rd minutes stated that no one appeared to address the Council and that the meeting
adjourned at 7:12 p.m., even though she had prepared comments regarding the 2050
Comprehensive Plan and Resident -Centered Engagement, which she was unable to present. She
noted that since the Comp Plan was not on the agenda tonight, she was not asking for formal
action on her comments, but asked that they be taken as supplemental comments and be utilized
and preserved for the future. She asked the Council to clarify how items submitted regarding the
Comp Plan will be cataloged, reviewed, answered, and reflected in the plan. She noted that
residents need a visible feedback loop. She commented that Resolution 26-048 presents a more
urgent visibility issue. She noted that the resolution authorizes Staff to enter into a contract with
an unnamed security firm for 19,682.13 dollars. She stated that this only covers the cannabis
alarm and access control in Wellington's proposal and that the complete project is around 78,000
dollars, not including taxes and fees. She requested that, before approval, Council clarify which
equipment, installation, and recurring services the 19,682.13 dollars covers, and how additional
services would be approved. She requested that Council explain which additional fees will be
included in the "all -in" security costs. She also requested that the Council explain how they
determined the lowest responsible bidder. She stated that the contract with the security company
should be made public once it is agreed upon, so the public can determine whether the quote
matches its scope. She reflected that the City received a clean opinion their 2025 Financial
Audit, which she stated was positive. She noted that the presentation identified findings on
financial statement corrections and on legal compliance related to payments not made within a
35-day window. She stated that the prior year's presentation was the same standard format but
did not reflect these findings. She asked the Council to identify the reason for the finding, the
remedial action, the individual responsible, the expected completion date, and when the Council
will be informed of whether the corrective action was successful. She questioned why the slides
showed a 56 percent fund balance, compared with a display policy range of 35-50 percent. She
also asked why the calculation labeled with a 2026 expenditure budget is labeled the net 2025
budget. She commented that the 2026 Mid -Year Report included several numerical
inconsistencies. She stated that the scorecard showed a gross profit of approximately 754,000
dollars. In comparison, the next slide reports 764,928 dollars in sales and 2,857,225 dollars,
compared to 3,164,899 dollars, representing a decrease of 307,674 dollars, not 308,263 dollars.
She stated that the cost of goods sold decreased by 231,868 dollars, not 210,760 dollars. She
stated that gross profit decreased by 750,807, not 519,023 dollars. She stated that salaries, wages,
and benefits increased by 450,196 dollars, not 230,169 dollars. She finished by saying that other
expenses decreased by 7,460 dollars, not increased by the amount shown. She stated that she
believed the larger operational result also needed to be discussed. Dr. Neumann stated that in the
mid -year of 2025, retail operations reported a profit of around 83,269 dollars. She compared this
to the loss for this year, totaling 30,274 dollars. She commented that this is a yearly deterioration.
She asked the Council to clarify the result of these losses. She asked that the project profit be
accompanied by its assumptions and a reconciliation showing how the operation reaches the
year-end figure. Dr. Neumann asked the Council to ensure arithmetic is validated in the future,
especially when they are approving theorized funds. She reiterated the points of Resolution 26-
050, noting it must be paid back in 10 years and accrues 4.5 percent annual interest, along with
the fact that payments will initially be made instead of rent. She questioned why the packet
contains no amortization schedule, payment start date, minimum payment, rent valuation, or
required reporting schedule. She wished that, before approval, the Council had required all of
City Council Regular Meeting Minutes
July 14, 2026
Page 8
1 these items, along with sales reporting. Mayor Webster informed Dr. Neumann that she had
2 reached the extent of her time.
4 Paul White stated that last year, the Council voted to allow him to continue operating his guest
5 house. He informed the Council that he was in attendance to thank them for allowing him to
6 continue operations, as this helps make St. Anthony a stronger community. He noted that the
7 Council's decisions result in changes they may be unaware of. Mr. White noted that 74 percent of
8 their business has been connected to St. Anthony residents. He highlighted the many reasons
9 guests had come to stay at their establishment, including being near other St. Anthony residents.
10 He informed the Council that there were four repeat guests in the last year who were connected
11 to St. Anthony residents. He provided an example of a St. Anthony family hosting an older
12 relative in the guest house for six weeks so they could be close to family while the relative
13 received treatment. Mr. White gave another example of two brothers who came from overseas to
14 stay within a block of their host family. He informed the Council of another guest, two out-of-
15 town grandparents who were able to spend time with family while giving them space. He
16 expressed that these are ways in which their establishment is an amenity to the community. He
17 highlighted their lack of neighbor complaints, police calls, issues, parties, and that guests have
18 left the property neat and tidy. He reiterated his sincere gratitude to the Council for trusting them
19 with running their business and enhancing St. Anthony.
20
21 XII. INFORMATION AND ANNOUNCEMENTS.
22
23 A. Future Agenda Items.
24
25 The next Regular Council Meeting will be held on July 28, 2026.
26
27 Councilmember Doolan recognized the recent passing of two members of the community and
28 thanked them for their service to Saint Anthony Village.
29
30 Mayor Webster announced that the grand reopening of the Marketplace Muni will take place
31 July 18 from 12 to four p.m.
32
33 Mayor Webster reminded the Council that on Saturday, August 1, the Council is leading bingo at
34 VillageFest.
35
36 XIII. ADJOURNMENT.
37
38 Motion by Councilmember Jenson, seconded by Councilmember Doolan, to adjourn the meeting.
39
40 Motion carried 5-0.
41
42 The Regular Meeting of the City Council was adjourned at 8:27 p.m.
43
44
45 Respectfully submitted,
46 Samina Crabtree
City Council Regular Meeting Minutes
July 14, 2026
Page 9
1 TimeSaver Off Site Secretarial, Inc.
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7 ATTEST: AkuQL"0426
8 City Clerk
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Mayor