HomeMy WebLinkAbout2025.01.27 CC Packet - Goal Setting Packet
AGENDA
City Council Goal Setting Workshop
City Hall Council Chambers
Monday, January 27, 2025
6:00 p.m.
1. Call to Order and Roll Call
2. Overview
• Discussion on 165th Street Corridor Study
• Discussion on Local Affordable Housing Aid
• Discussion on Rental Housing
• Discussion on Urban and Rural Tax Rate
• 2025 Objectives
3. Selection of 2025 City Goals
4. Direction to Staff
5. Adjournment
TO: City Council
FROM: Bryan Bear, City Administrator
SUBJECT: 2025 Goals
DATE: January 22, 2025 for the City Council workshop of January 27, 2025
BACKGROUND:
Attached to this memo is a copy of the 2024 Goals approved by the City Council last year, as
well as the 2025 goals that were discussed in recent weeks by the Parks Commission, Planning
Commission, Economic Development Authority and Historical Commission. I’d encourage you
to review this information as you prepare the City’s goals for 2025. As you know, staff uses the
goals developed by the Commissions and City Council to direct our work priorities in addition to
our daily work assignments.
As you consider setting the City’s goals, below is a review of projects the staff anticipates
spending time on in 2025 based on prior Council direction and upcoming topics:
Infrastructure:
Pavement management program: The condition of city streets worsened substantially
during the 2022/2023 winter. The severe winter accelerated the deterioration of streets and led to
the Council’s decision to add revenue from the annual property tax levy to fund the streets CIP.
Last year, staff completed the rating of all city streets and trails which has led to some re-
prioritization of projects. In addition, it has caused an expansion of the street reconstruction
program to include two major projects this year.
The 2025 street projects will include the streets within the Beaver Ponds neighborhood as well
as a collection of streets in Eastern Hugo.
Bridges: The Engineering staff has recommended replacement of two bridges in the City
including the Forest Road bridge north of 175th Street and the Fable Hill Parkway bridge.
Due to their poor ratings, both bridges are now eligible for state bridge bonding funds. Council
has authorized staff to proceed with the engineering design of the bridges, which we expect to be
complete by this summer. Following that, applications for the projects will be submitted to
MnDOT for review and approval for bridge bonding funds. Construction will occur in 2026 or
2027, with timing to likely coincide with the Fable Hills street reconstruction project.
CITY OF HUGO
MEMORANDUM
Infrastructure Planning:
The 165th Street Corridor is primarily gravel between Hwy 61 and Elmcrest. The road
will need improvements, including paving due to development pressures, anticipated increases in
traffic volumes, and the need for traffic from the south to have better connection to a collector
street. East of Hwy 61, there is also pending development. While the road in this section is
paved, there is a need to extend the City’s sewer and water infrastructure to this area.
Additionally, the City’s Parks Plan shows a recreational trail along the length of 165th Street.
There is also a need to review planned land uses along this corridor, which is characterized by
abundant natural resources. If the corridor and associated infrastructure is improved, it will be
transformative for this part of the city. Staff would like to discuss with Council initiating a land
use and infrastructure study coupled with an environmental review. This would be a
significant undertaking that would involve land owner input.
Otter Lake Road. The City of Lino Lakes is planning to extend Otter Lake Road likely
in 2026. The road would extend north from CSAH 14 and will join Elmcrest near the main
entrance to Heritage Ponds at the Hugo border. Then, the road would continue north along the
Elmcrest route to Forest Lake and Coumbus. Coordination of this project involves 4 cities and
both Anoka and Washington Counties. In Hugo, connections to the new road at Heritage
Parkway will involve a new intersection design, where it converges with both Elmcrest Ave, and
Otter Lake Road.
Elmcrest Ave is a gravel road north of 158th Street. If the first phase of the Otter Lake
Road project terminates in this vicinity, it will dump large volumes of traffic onto a gravel road.
For this reason, Hugo and Lino Lakes must begin planning for either temporary paving or
permanent improvements to Elmcrest from 158th Street north to 170th Street. Hugo would likely
need to cost share for this project in 2026, however it is not currently within the city’s CIP.
Hwy 61. Washington County has recently completed the Hwy 61 visioning study.
Fixed-route transit has been removed from this transportation corridor, which changes right-of-
way needs, removes access controls and will impact future land use planning along the corridor.
We now anticipate a discussion surrounding a “turnback” of the road to Washington County, and
a discussion on needed corridor improvements in connection with a turnback.
Turn Lanes on Hwy 61 between 140th and Frenchman Road are scheduled to be
lengthened in 2025, along with modifications to traffic signals. City staff is involved in the
planning and implementation of this improvement with Washington County and MnDOT.
Ditches. Following a long series of projects over the past two decades, the City &
RCWD are nearing completion of all major ditch maintenance projects in the City, specifically
including all sections of Judicial Ditches #2 and #3, along with all branches. The next step is to
ensure that ongoing minor maintenance continues to occur. City staff will be working with the
RCWD on an agreement concerning how to do this, who does it, and how the work is funded.
Water:
White Bear Lake Lawsuit. The saga continues. Following a decision from the
Administrative Law Judge last year concerning our water appropriation permits, both the City
and the Lake Associations have appealed his ruling to the Court of Appeals. Depending on how
this plays out, the City may have several action steps to take. In the mean time, the White Bear
Lake Comprehensive Plan Work Group, is meeting, and is charged with recommending
solutions to the lake level problem by the 2027 legislative session. The recommendations from
this work group could be consequential to all communities in the northeast metro.
Stormwater re-use. The City is working toward a goal of 100 million gallons of storm
water re-used through this program on an annual basis. Construction is ongoing on several new
projects that will be privately managed by Homeowners Associations. Staff continues to seek
outside funds and project ideas for other re-use projects. City staff is reviewing the results of a
study at this time with the Rice Creek Watershed District to evaluate the successes and failures
of these projects, with a hope to improve processes that lead to their construction. We also hope
to identify possible enhancements to existing projects.
Water Conservation. We will continue to seek new ways to lead in this area, but work
has been hampered by the White Bear Lake lawsuit.
Regional water studies that impact Hugo continue to be developed and updated. Staff
reviews this data, participates on many task forces and committees and is involved in regional
discussions involving water use. Dave Strub is being appointed as a member of MAWSAC.
Fire Department:
Administration. The City has hired a full-time Fire Chief, who is now implementing a
work plan that incorporates Council’s objectives. The Chief has implemented changes to the
organizational structure of the department, along with some operational adjustments. Physical
improvements are underway at the Fire Hall. In 2025, the Chief would like to determine the
long-term future of the Fire Marshal’s position.
Engine #2. The Fire Chief is developing a long-range plan for the department’s fleet of
vehicles. The largest (and most expensive) trucks are on a 30-year replacement schedule, which
means the tanker truck (Tender #1) is due for replacement in 2032, and the heavy rescue truck
(Rescue #1) is due for replacement in 2034. The Chief is evaluating whether department
operations would be improved if both trucks were to be replaced with a single Engine/Tender
(think pumper-tanker combination truck), to be purchased as early as 2029. The Department’s
operation has changed since these older trucks were originally purchased. The evaluation would
begin with the Chief assigning a truck committee comprised of select members of the Fire
Department. If things were to play out this way, it would result in substantial savings for the
City, although a major expenditure would occur earlier than planned.
Parks:
Trails. City staff is partnering with Washington County to find funding for construction
of the last section of the Hardwood Creek Trail. We expect funds to be requested from the
State’s 2025 bonding bill, if there is one. Planning for the Glacial Hills Regional Trail through
northern Hugo is being completed at this time. Last year, the Public Works staff cleared land for
informal nature trails in the Oneka Place and Hugo Meadows areas. Trails in Clearwater
Creek Preserve are a priority of the Park Commission in 2025. The trail in Beaver Ponds will
be replaced with this year’s street project. Planning will need to begin for the 2026 street project
that will likely include trail reconstruction along Fenway between 130th and 140th Streets. The
project also includes a trail connection along 130th Street that will require right-of-way
acquisition.
Trail Maintenance. Many sections of Existing Trails need maintenance. Last year, the
staff completed the City’s first-ever trail ratings system and has integrated trail maintenance
into the streets CIP. This new program will continue to be evaluated over the next several years.
The city is developing better strategies for dealing with pesky “willow-pops” on trails.
Veteran’s Memorial at Lion’s Volunteer Park. Space for such a memorial is provided
within the park, and Council has expressed some support for it, but it has not been built. Staff
would like to find partners for this possible future project.
Bernin Park. All buildings have now been demolished. In 2024, the Parks Commission
approved the construction plans for park improvements, however the City’s application to the
DNR to fund the improvements was not approved. Staff is working this winter to complete
connections of the informal trails within Bernin Park to new trails within Oneka Shores, creating
a continuous walking path along the edge of Oneka Lake. This park is adjacent to Oneka Ponds
Park and will interface nicely with that park following this year’s project at that park.
Neighborhood Parks. For 2025, the Parks Commission’s goals include plans to replace
the playground and complete other site improvements at Oneka Ponds Park.
North Star Wetland Bank. This is a project behind the new North Star elementary
school that would involve creation of a wetland bank and addition of a trails network. After
substantial effort on planning this project in 2023 and 2024, the City is facing daunting
permitting challenges from state agencies. At this time, staff is evaluating whether this project
should be terminated, or whether a different project concept should be pursued. If the project is
terminated, there is still desire from the Parks Commission and the School District for trail
connections through this area, however without wetland banking revenue, the trails do not have a
funding source. This will be a discussion topic in 2025.
Programs. Since Covid, many of the community programming options that were
previously provided through our many community partnerships, are no longer available for a
variety of reasons. The Parks Planner is developing a strategy to increase programs and special
events available to our residents.
Community and Economic Development:
Downtown Hugo and city-owned property. Development of this site remains a top
priority for the EDA. With EDA direction, the staff has been marketing the property. Revisions
to the City’s shoreland ordinance are necessary to provide certainty that a project can get DNR
support for building near Egg Lake.
The City’s Shoreland Ordinance is being evaluated. Following DNR resistance to the
City’s downtown planning efforts, and with shoreland rules not making sense in other areas of
the City, especially along Judicial Ditches, staff from the City and DNR are working toward
some more flexible standards that better meet the State’s conservation goals, and better interface
with developments. In early 2025, we expect to have draft ordinance revisions presented to the
Ordinance Review Committee for discussion.
Local Affordable Housing Aid. The City has started receiving funds from the State that
must be spent to support affordable housing. The City will either need to develop its own
program for use of these funds or contract with the Washington County CDA. Staff will discuss
this with the City Council at the goal setting workshop.
Apartments. Reacting to recent development approvals and new concept plans showing
apartments, the Planning Commission adopted a goal in 2024 to evaluate whether higher density
residential development should be encouraged in more areas of the City. This is a significant
question that could impact sections of the City’s zoning ordinances and Comprehensive Plans.
Discussion of High-Density Residential projects has involved land guided for commercial or
mixed-use. In those circumstances, it would be prudent to also review the mixed-use areas, and
commercial zoning districts. The City staff with help from its consulting staff is about mid-way
through this effort, which will be complete this year.
Single-Family regulations. With the market trending toward higher housing prices, and
requests for smaller lots, the Planning Commission has initiated a discussion on zoning standards
for single-family development. This discussion is running parallel with the apartment discussion
and will be completed this year.
Commercial and Industrial Design Guidelines. The City approved the construction of
3 buildings near 130th and Fenway with architectural metal as an exterior finish. The approval
required a variance, since metal is prohibited as a primary building material. We also understand
that there is a much wider variety of quality architectural materials that have been developed
since the adoption of the existing guidelines. The Planning Commission is expected to evaluate
and recommend whether to allow alternative quality materials in our construction standards.
Cannabis. Use of cannabis is now legal, and related businesses will begin to review
licenses from the State in 2025. The City adopted a cannabis ordinance in January. This winter
and spring, staff will be preparing for implementation of the ordinance, including creation of
application forms, documents, internal procedures, etc.
Development Review. Ongoing review of developments in 2025 will include a
multitude of residential projects, with many of them occurring along the 165th Street Corridor.
The staff is anticipating other applications around the city, including land along County Road 8.
2050 Comprehensive Plan. This plan must be complete by 2028, and the City will
likely not begin this formal planning process until sometime in 2026. Prior to that, the City has
identified urgent needs related to land use and infrastructure planning due to recent events along
Hwy 61, 165th Street, and Elmcrest Ave that might cause us to begin planning work on small
area studies in 2025. The ongoing review of apartments and single-family uses will affect the
comp plan, as will looming Met Council decisions that include minimum density requirements.
The White Bear Lake Work Group recommendations may also have consequential impacts to the
long-range development of the city. Unlike the 2040 plan, which was a simple plan update, the
2050 plan is lining up to be a major undertaking.
Rental Housing. The Water’s Edge neighborhood has requested the City look at
adopting a rental housing ordinance similar to what is done in many other cities. The goal is to
evaluate whether such regulations will be effective in enhancing neighborhood safety and
reducing crime. Council directed staff to lead a discussion on this topic at a Council workshop in
early 2025.
Solar. The City has imposed a moratorium on solar farms, which expires in May. The
Ordinance Review Committee is currently reviewing revisions to the solar farm ordinance, and
we expect revisions to be ready for consideration prior to the expiration of the moratorium.
Administration and Finance:
Staffing. The City budget includes a vacant position for Deputy Clerk or something
similar that could fulfill needs in a variety of areas including improved coordination of City-wide
communications, website management, social media efforts, and room rental coordination.
Management also intends to review the staffing structure related to the Community Development
and Building Departments to better serve the city in the future. The staff is anticipating a
retirement in the building department. This discussion also ties into the Fire Chief’s evaluation
of the Fire Marshal’s job duties.
City website. A new website was launched in 2024, and is still being updated.
Personnel Policies. The State has made substantial changes to many laws concerning
employment. The City has implemented an Earned Safe and Sick Time program to comply with
new State Laws and is now beginning to prepare for the State’s new Paid Family Medical Leave
program, which formally begins in 2026. These efforts are burdensome and require substantial
staff time to prepare for, and to continually administer on an ongoing basis. City Administration
believes it is necessary to perform a review and analysis of employment benefits. In some
cases, it is possible that Hugo has fallen behind typical offerings from other cities, and with the
new Paid Family Medical Leave program, the time is right to do a comparison. The City’s
personnel policy has become out-of-date due to changes to state law, and for other reasons.
Staff has begun a review of the personnel policy and will be recommending changes. Related to
all of this, staff is making modifications to human resources practices, and payroll processes.
Tax Rates. The City has both an “Urban” and a “Rural” tax rate. Council has had some
discussion about whether to combine these into a single tax rate. If Council would like to pursue
this in 2025, it could then become effective for the 2026 tax year, and it should be included as a
City Goal. We will need to outline a process for consideration and public input.
Fiscal Policies and Bond Rating. These policies have served the City well. Over the
next year or two, the Finance staff will consider supplementing these policies with new measures
that could improve the City’s bond rating.
Software & Technology. The City uses some admittedly archaic, but effective
software packages that help manage all Finance and Building Department operations. These old
platforms will not be supported by the software vendors beyond 2026. The City needs to
upgrade these software packages, which will involve major time investments. Funding for these
changes is not yet budgeted.
Facilities. Staff is mostly complete with an in-house evaluation of all facilities to
determine whether they continue to meet the needs of the citizens, and the working staff. It is
likely that minor updates and enhancements will be advisable. Staff will be prepared to discuss
any improvements with Council in the first half of 2025. The staff is also reviewing internal
processes and fees for room rentals. The Hopkins Schoolhouse received new siding and
windows last year, and staff will be working with the Schoolhouse Committee on a work plan for
2025.
STAFF RECOMMENDATION:
Staff recommends council use the information provided to discuss and prepare a list of goals for
2025.
2025 Goals
Planning Commission
•Evaluate and consider revisions to all zoning distirct regulations and
performance standards
•Evalute and consider zoning language and geographic considerations
for high density residential apartment projects in the City
•Evaluate and consider adoption of a mixed use zoning district
•Evaluate and consider revisions to the shoreland ordinance
•Review and consider revisions to the Commercial and Industrial
Design Guidleines related to new trends for building materials
•Schedule regular Ordinance Review Committee (ORC) meetings
Land Use and Design Topics
•Monitor trends in planning and developments
•Keep updated on land use related topics
•Develop methods of communicating planning related issues
to the public
•Use the City's website to keep the public informed of
projects completed and in development
Training/Presentation Topics
•Implementation of the 2040 Comprehensive Plan
•Update ordinances/policies to be consistent with the
Comprehensive Plan
•Stay informed of the Highway 61 Vsioning Study
•Complete 165th Street area study related infrastructure
improvements and future land use to inform 2050
Comprehensive Plan
Comprehensive Plan
2025 Goals
Economic Development Authority (EDA)
•Stay engaged with the Highway 61 Visioning Study
•Complete 165th Street area study related infrastructure improvements and future land
use
•Stay engaged in the ordinance revisions regarding residential and commercially
zoned property and make recommendations on land uses
•Assist and encourage redevelopment and beautification of properties in downtown
•Continue marketing and determine the future of the city-owned property on Egg Lake
•Stay informed on the Shoreland ordinance revisions
•Stay informed on Cannabis related laws and City Code revisions
Development and Downtown Redevelopment
•Continue low development costs
•Engage with existing business to promote business expansions and
retention
•Provide resource lists for business
•Promote Washington County CDA grant and Open to Business Program
Maintain a Business Friendly Environment
•Continue memberships of economic development associations
•Stay informed with the progress of the Technology Corridor (I35E)
planning and the extension of Otter Lake Road
•Continue to encourage and monitor infrastructure improvements to
promote economic development
Marketing / Promotion of the City
•Continue partnering with local businesses and the HBA
•Continue to partner with Washington County on its Economic
Development Strategic Plan
•Meet with property owners with property for sale to see if there is any way
the City can help
Partnerships
2025 Goals
Parks, Recreation and Open Space Commission
Approved by the Parks Commission at their December 18, 2024 meeting.
•Address trail and greenway connectivity with new developments.
•Pursue North Star Wetland Bank and Trail construction.
•Discuss winter trail use.
•Support Washington County in constructing the Hardwood Creek and Glacial Hills Regional Trails.
•Plan for construction of trails in the Bald Eagle Industrial Park.
Develop a network of multi-purpose
TRAILS connecting neighborhoods
to parks and open space
•Provide for the changing recreation needs of our diverse population through partnerships.
•Seek partnerships with emphasis on the teens and youth to utilize park facilities.
•Evaluate recreation programs and plan new events and programs.
Utilize facilities to provide
active and passive RECREATION
options for all Hugo residents
•Continually inspect existing parks and trails and maintain and enhance as necessary.
•Install new park signs according to the park sign replacement plan.
•Replace the playground and improve Oneka Lake Park.
Manage and optimize all EXISTING
PARKS AND TRAILS
•Plan for construction of improvements to the Bernin properties and seek funding.
•Prepare constructions plans for Clearwater Creek Preserve trail improvements.
•Evaluate recognition opportunities at Lions Volunteer Park.Expand COMMUNITY PARKS
•Actively utilize the Comprehensive Plan as a planning tool.
•Respond to resident input.
•Review development applications with respect to the Parks, Trails, and Open Space Plan and Park Dedication Policy.
Administer the
Parks, Trails, and Open Space
PLAN and POLICIES
From:Brad LeTourneau
To:Michele Lindau
Subject:Re: Goals
Date:Friday, January 24, 2025 5:01:03 AM
Caution: This email originated outside our organization; please use caution.
Good morning. I’m sorry this is so late but my email went down. As far as goals for 2025 our
main goal is to inventory our collection. Another main goal is to have a larger display at good
neighbor days. I would say our third goal recruit two new members. Sorry about the delay.
Just got this thing up and running now. Thanks for all you do for us.
Brad
Sent from my iPhone
On Jan 22, 2025, at 1:11 PM, Michele Lindau <MLindau@ci.hugo.mn.us> wrote:
Hello Brad. The council will be meeting on Monday to discuss goals. The packet
will go out on Friday. Does the Commission have any goals for 2025. Sorry, I
should have asked you prior to your meeting yesterday.
Michele Lindau
Hugo City Clerk
651-762-6315
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Urban & Rural Taxing
Districts
What are Urban & Rural Tax Districts?
•MN Statute 272.67:cities in counties other than Ramsey or
Hennepin may adopt an ordinance to establish separate property
tax rates by distinguishing rural and urban service districts
•Cities establish a benefit ratio: an approximation of municipal
benefits received by rural and urban district parcels of similar
market value
How are Service Districts Classified?
•Rural service districts include:
•Unplatted lands that the governing body deems rural in character at the
time of the ordinance
•Lands not developed for commercial, industrial, or urban residential
purposes
•Land which does not benefit from municipal services to the same degree
as other lands
•Land that does not meet all 3 requirements is typically classified
within the urban service district
Motivations for Separate Districts in Hugo
•Around the time of consolidation, the Village of Hugo provided more public services than the Township of Oneka
•Increased development & demand for services in the southern region of the Township
•“Similar services may not be necessary in the remainder of the Township for an indeterminate period,” (Hugo –Oneka Consolidation XVII.)
Village of Hugo Township of Oneka
•Public water
service
•No public water
service
•Approved plans for
public sewer
system
•No public sewer
system
•Volunteer Fire
Department
•Contracted fire
protection from
Hugo
•5 miles of road,
65% paved
•Majority of roads
unpaved
Urban & Rural Service Districts in Hugo
•An ordinance distinguishing rural and urban service districts in
Hugo was adopted in 1971 as a component of the Hugo –Oneka
Consolidation
1,398
6,134
Hugo Parcels by Service District
Rural Urban
Municipality Tax Capacity Rate
•Urban: 36.7%
•Rural: 33.06%
Current
Benefit Ratio:
0.9
Tax districts map
Tax districts map
Reclassifying Parcels
•272.67 Subd. 8: Platted parcels may be included in the rural service district if:
•They are rural in character
•They are not developed for commercial, industrial, or urban residential purposes
•Urban services such as water, sewer, or street improvements are not extended to any portion of the property
•Since 1987, the County has moved any rural parcel that has been platted to the urban service district
•Under Subd. 2, Hugo’s ordinance could be amended to add or remove certain parcels from the rural district
Tax District Equalization
•The City discussed abolition of separate tax districts in 1978,
arguing that both districts benefitted equally from general fund
services
•This was opposed by the public and a motion to abolish the districts
failed
•City staff proposed district equalization again in 1986, but
residents expressed strong opposition at the public hearing
•Instead, a motion to raise the benefit ratio from 80% to 90% was adopted
Arguments Against Equalization
•Tax equalization would not translate to service equalization
•Rural residents do not receive the same quality of municipal
services
•Longer response times for emergency services
•Rural service district operates at a less costly level
•Tax increases could harm agricultural residents and make it
difficult to maintain Hugo’s rural character
Arguments for Equalization
•Urban tax islands in rural Hugo are difficult to justify
•Rural residents receive equal or comparable municipal services
•Some public services cater to rural areas (dust control, ditching projects)
•Many properties in the rural service district are enrolled in the
Green Acres and Rural Preserves programs
•Property tax relief for qualifying farmland
•As of 2022, 167 properties in Hugo were enrolled in the Green Acres
program
Takeaways
•Service districts are intended to lower the property tax rate for rural
land that does not receive the same level of municipal services
•Staff have reviewed municipal service delivery and believe that it
does not logically correspond to the current distribution of tax
districts
•Hugo’s tax district policy could be updated by equalizing the
districts, changing the benefit ratio, or reclassifying certain
parcels
•Staff recommend that City Council discuss and provide
direction to staff