On the agenda: Mound October 27, 2026 City Council Agenda Packet — Flock Camera (Oct 27)

CITY OF MOUND CITY COUNCIL
AGENDA
Tuesday, October 27, 2026
Directly following the Adjournment of the Housing and Redevelopment Authority Meeting
THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING

1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ADOPT AGENDA
4. PUBLIC COMMENTS
5. CONSENT AGENDA

a. Minutes of October 13, 2026, City Council Regular Meeting, Kelly
b. Approve Resolution 26-72 Approving Public Gathering Permit for 2026 Mound Tree
Lighting Event, Smith
c. Pay Request No. 1 and Final in the amount of $40,669.00 to American
Environmental for 2026 Sewer Televising Project; PW-26-04; Bauman

6. PRESENTATIONS
a.
b.
c.
d.
e.

Council Introduction of Proposed Concept for 6221 Lynwood Boulevard, Smith
2025 Audit and Annual Comprehensive Financial Report, Erdmann
Discussion Regarding Flock Cameras, Stensrud
Recognition of Trailblazer Award from Neogov, Imihy
Water Treatment Plant Additional Funding Information, Imihy

7. PUBLIC HEARINGS

a. Consideration/action on Resolution No. 26-73 for Vacation of Easement for
Sanitary Sewer/lift station Purposes at 1604 Dove Lane, Smith

1-11
12-17
18-20

21-27
28-57
58
59
60-62

63-77

8. OLD BUSINESS
9. NEW BUSINESS
10. ANNOUNCEMENTS

a. Comments/Reports from Council Members
b. Comments/Report from City Manager
c. Next City Council Regular Meeting: Tuesday, November 10, 2026, at 6:00 p.m.

11. ADJOURN

City of Mound Mission Statement: The City of Mound, through teamwork and cooperation, provides at a
reasonable cost, quality services that respond to the needs of all citizens, fostering a safe, attractive and
flourishing community.

MOUND CITY COUNCIL MINUTES
October 13, 2026
The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on
Tuesday, October 13, 2026, at 6:00 p.m. in the Council Chambers in the Centennial Building.
Members present: Mayor Jason Holt, Council Members Sherrie Pugh, Kathy McEnaney, Kevin
Castellano and Michelle Herrick.
Members absent: Kathy McEnaney
Others present: City Manager Jesse Dickson, Deputy City Manager Laila Imihy, City Clerk Kevin
Kelly, City Attorney Scott Landsman, Public Works Director Ryan Prich, Finance Director
Lindsay Erdmann, Senior City Engineer Brian Simmons, City Engineer Matt Bauman, Helen
Canning, Aaron Geddes, Justin Pfau, Stephen, Mona Horejsh, Jennifer & Steven Billington,
Brian Embrey, Jim Kruse, Penny Andeson-Ortiz, Sofia Ortiz, Jannel McCullough, Tyler Pieper
and Matthew Plasencia.
1.

Call to Order

2.

Pledge of Allegiance

3.

Adopt Agenda
MOTION by Castellano, seconded by Herrick, to approve the agenda. All voted in favor.
Motion carried.

4.

Public Comments
Jim Kruse, 2830 Pine Road, said he is concerned about the Water Treatment Plant (WTP)
bid discrepancy of the engineer’s estimate and the actual bids the City received.
Mona Horejsh, 5936 Gumwood Road, said the water main replacement project along
Langdon Lane and Diamond Lane has caused quite an inconvenience. Horejsh said some
neighbors were told they were not going to be billed for utilities while some residents were
billed and some were not which is not fair to residents. Horejsh asked what the plan is
going forward on the project and would like clear answers going forward. Horejsh said
residents incurred additional costs regarding mail boxes being destroyed and curbs and
aprons being put in.
Penny Anderson Ortiz, 5978 Elmwood Road, said she was billed 13,000 gallons during
project and brought a copy of her utility bill.
Jennell McCullough, 5926 Gumwood Road, asked the Council why neighbors had to walk
on the road while it was under construction and water service would stop when the
temporary water lines were broken. McCoullough asked the Council about the quality of
project management.
Justin Pfau, 2163 Diamond Lane, said the temporary water lines to each house would be
damaged and there was no water running through the meters. Pfau said there were many
days in which water was running down the street. Pfau said the water was unusable and he

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needed to install reverse osmosis which caused him to be charged an exorbitant amount to
put the system in.
Prich said he learned of the utility bills this morning and will be looking at the bills and will
figure out how to rectify the bills for residents affected by the project. Bauman said they are
required to follow contractor law and have to stick with contracting statute. Prich said the
team is working with GMH Asphalt to improve though they are meeting contract timelines.
McEnaney said how can Bolton and Menk (B & M) be more responsive. Bauman said the
short notices have been challenging and the contractor has been sending out day to day
notices. Bauman said staff can inspect the work quality and progress and the contractor
needs to follow the contract deadlines.
McEnaney said residents have frustration about the project management and are looking
for answers. McEnaney asked who was in charge of oversight of the project. Bauman said
there are methods to oversee and document the contract work and there are tradeoffs with
contracted work.
McEnaney said the process didn’t seem efficient. Bauman said there are some areas
where things don’t go right and there are many parts to these projects. Bauman added that
the project won’t be closed until all contract work meets requirements.
Prich said staff will be more stringent with the next contracts which are planned and Prich
said there have been discussions with B and M regarding project work. Prich said the team
is meeting weekly to move the project forward. Prich said the curbs were being laid today.
Castellano said the City Council sees the bids. Prich said the City sets the standards and
will put the project out to bids based on those standards.
Anderson Ortiz said the information residents received from the contractor regarding
parking and other items was inaccurate. Anderson Ortiz said her retaining wall was
knocked over by a contractor.
Mona Horejsh said water bills were due on the 15th and asked what residents are supposed
to do and wondered if they had to pay those bills. Lindsay Erdmann said residents bills late
fees will be waived. Erdmann said she would work with Prich on getting the utility bills
resolved. Prich said what has been done historically is the averaged billing while these
residents can use as much water as they need. Holt said he would like staff to get a letter
out in the mail to respond to the excessive bills.
Pfau said that no billing would occur for water used during the project. Pfau said he would
like to see an audit.
Matt Plasensia, 5935 Gumwood Road, said the biggest issue he has is with communication
and project management. Plasensia said it is frustrating to be informed with very little
notice to move vehicles. Plasensia said Gumwood Road has been ripped up since the
second week of June.
Aaron Geddes, 6000 block of Lynwood Blvd., said the lowest responsible bidder policy
should be reviewed. Lindus said a water treatment plant is needed and is willing to pay
taxes for building it.

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5.

Consent Agenda
a. Approve Minutes of September 22, 2026, City Council Regular Meeting, Kelly
b. Check Registry for September 2026, Erdmann
c. Approve Resolution 26-56 Metropolitan Council Planning Grant Application, Smith
d. PULLED
e. PULLED
f. 1737 Wildhurst Lane Settlement Agreement

MOTION by McEnaney, seconded by Pugh, to approve items 5a., 5b., 5c. and 5f. All voted in
favor. Motion carried.
Herrick said she would like to pull Items 5d. and 5e.
5d. Pay Request No. 8 in the amount of $659,040.03 to Minger Construction for work
completed on Water Treatment Infrastructure Improvements – Phase 2,
August 21, 2026, through September 25, 2026; Bauman
Bauman said Phase 2 is the work being done on Commerce Blvd. as well as along Evergreen
Road to the area of the Evergreen Water Tower. Bauman said this is a pay request for work
completed during the last month. Herrick said she would like these pay requests to be more
specific regarding the work which was completed. Bauman said he signed off on the progress of
the work completed in Phase 2 of this project.
Erdmann said she is working on pay requests with Ryan Prich and B & M staff. Erdmann said
the City Finance Department would like to see what services were completed in the period and
to include the specific work in the packet.
MOTION by McEnaney, seconded by Herrick to approve item 5d. All voted in favor. Motion
carried.
5e. Pay Request No. 4 in the amount of $377,944.66 to GMH Asphalt for 2026 Street and Utility
Improvements; City Project nos. PW-26-01 & PW-26-02; Bauman
Bauman said this item is payment for progress completed on the project. Bauman said the City
has a 5% retainage which is used to work through the punch list items which need to be
resolved. Simons said the pay requests withhold 5% as incentive to complete the final
restoration work. Simons said there is extra time allotted on projects to do a final close out with
documentation the project plan is completed, or a remedy is in place. Simons said the final
remedies are smaller items such as letting grass or sod fill in.
Simons said 60% of Item 5e. is completed. Herrick asked when the project will be done.
Bauman said black top will be laid this week.
Simons said B and M will work on improving communication. Simons said project management
acts as intermediaries and there are contract controls in place. Simons mentioned a contractor
or a sub-contractor who was supposed to start work at 8:00 a.m. today didn’t show up until
5:00PM.
MOTION by McEnaney, seconded by Herrick to approve item 5e. All voted in favor. Motion
carried.

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6.

Presentations
a. Gillespie Center Presentation, Imihy
Imihy introduced Brian Embrey to the City Council. Embrey said he is the Executive Director of the
Gillespie Center and has been on the job for the past six months. Embrey thanked the City for the $10K
donation for 2026. Embry said the Gillespie Center operates from an endowment and through
donations and memberships.
Embrey listed Gillespie Center building improvements from the funds the Gillespie Center received:
• New A/C Unit
• New Thermostat and Ventilation Control Systems
• New Sprinkler Heads in Kitchen Area
• New Boilers installed
• New Roof replaced a 26-year old roof
Embrey listed Gillespie Center services and programs:
• Executive Director is the only FT employee with volunteer support
• Health Insurance Counseling
• Aging Pathways Course
• Defensive Driving
Embrey define community supports the Gillespie Center provides:
Community partners and support
And many fundraisers
175 Mound Senior Households received access to essential services in 2026. Embrey said there are
350 members of the Gillespie Center.
Embrey listed additional services the Gillespie Center provides:
• Food Shelf partnership
• Reduced Cost Bakery
• Tax Counseling and Preparation
• Medicare Counseling Sessions
• Acts a City of Mound polling place
• Health Services seminars and vaccinations
• Fraud Prevention Resources - hosting seminars
• Tech Support
• Fall Lake Minnetonka Cruise
• Embry listed many events hosted and provided by Gillespie Center and its partners.
Embrey said a new program at Gillespie is the Westonka Tech Tutors which assists members to
respond to online and phone scam attempts. Embrey said a Business Teacher and Westonka High
School DECA Student group will act as advisors for seniors.
Embrey listed ways the Gillespie Center connects with residents and how residents can be of support:
• City Communication

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b. Staffing Overview, Imihy
Imihy presented a City staffing update and position vacancy overview:
• Understand Organizational changes and demographics
• Prepare for operational or organizational changes
• Assess hiring, recruitment and retention efforts
• Medium tenure of government employees staying at thei jobs is 5.4 years
Imihy provided a history and background on City staffing levels
• Over the past 18 years the City has reduced staffing in favor of contracted workers
• Mound Police Department outsourced in 2012 to City of Orono Police Department – 19
employees were in the Mound PD in 2012
• Employee count went from 50 to 26 FT employees from 2008 to 2026
• Currently there are 28 FT City employees
• Deputy Fire Chief and Administrative Assistant added in 2026
• 30-hour liquor store employee changed to FT position
• Staff changes from retirements and vacancies including in key leadership roles in 2026.
Imihy said the majority of employees are in their first five years of employment. Imihy said there are
many employees with 10 years or more as City employees.
Imihy said future needs include new Finance Software, and a potential new water treatment plant which
will change staffing needs. Imihy said there will be a sharper eye on cost/level of service provided by
consultants and the goal is to reduce consultant costs while providing exceptional customer services in
every City department.
Pugh asked about the staffing levels of comparable cities. Imihy said Mound is understaffed compared
to other cities of comparable size. Imihy said there were waves of staff reductions in 2008 and 2012
which were large.
Discussion ensued about the significant economic issues during those years of staff reductions.
Imihy said the economy has rebounded and staffing hasn’t kept pace from previous economic
conditions.
McEnaney said the preliminary budget describes 5.6 added FTE’s and two new positions. McEnaney
said the budget document listed 28 employees when the budget document said there is 34.5
employees at the City.

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Imihy listed the City Organizational Chart which included the City Departments under:
• Administration Under the Deputy City Manager
• Community Development
• Public Works
• Fire Department
Imihy presented a look ahead to projected staffing needs in 2027 and beyond:
Imihy listed staff tenure and employee demographics:
• Eight of the 28 City Employees have been employed one-year or less
• Seven employees have been at Mound 2-4 years
• Most of the employee are between 30-61 years of age
• 60% of the City staff have been with the City for 5 years or less
2026 Vacancies
• Seven positions were internal promotions in 2026
• Senior Accountant will be starting in October
• On-line application software added in 2026 which has created a greater pool of candidates
Imihy provided more department information:
• Community Development added the Administrative Assistant Permit Technician and Planner
positions and removed the Field Officer position.
• Harbor Wine and Spirits – added a new Liquor Store Manager and a Assitant Liquor Store
Manager with six PT Clerks
• Finance Department added a new Finance Director and added Administrative Assistant/Finance
Technician and Senior Accountant – Proposing a new utility billing clerk to remove external
contractor
• Fire Department – retirement of long-term Fire Chief and hire of new Chief and a new Deputy
Fire Chief Christopher Heitz hired
• Public Works – Staffed by Public Works Director and Public Works Superintendent, four Lead
Public Works Leads and eight Public Works Workers. Proposal to add a Parks position and the
Engineering Technician to reduce consultant dollars spent on inspections
Imihy listed a summary of 2027 Hiring:
Administration
• Communication Specialist
• Finance - Utility Billing Clerk
• Public Works adding the Engineering Technician and Parks Worker positions
Looking Ahead - 2027-2031 updated FMP – City will model new positions:
• Water Treatment Plant Operator
• Building Inspections Staff
• Additional Administrative and HR Support

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7.

Public Hearings
a. Resolution 26-68 Adopting Assessment for Delinquent Municipal Utility Bills, Erdmann

Erdmann said there is $500K in outstanding utility payments which will be assessed. Erdmann said
utility payers have until November 16th to pay their assessment, or the amount will be assessed to the
individual’s property taxes.
Mayor Holt opened the public hearing at 8:02 p.m. and closed the Public Hearing at 8:03 p.m. No one
came forward.
MOTION by Castellano, seconded by McEnaney, to approve the following Resolution. All voted in
favor. Motion carried.
RESOLUTION ADOPTING ASSESSMENT FOR DELINQUENT MUNICIPAL UTILITY BILLS
AND CERTIFYING TO THE COUNTY AUDITOR AT 5% INTEREST - LEVY #27150
b. Resolution 26-69 Adopting Assessment for Misc. Expenses, Erdmann
Erdmann said this item is for mowing abatements for residential properties.
Mayor Holt opened the public hearing at 8:03 p.m. and closed the public hearing at 8:03 p.m.
No one came forward.
MOTION by Castellano, seconded by Herrick, to approve the following Resolution. All voted in favor.
Motion carried.
RESOLUTION N0. 26-69 RESOLUTION ADOPTING ASSESSMENT FOR MISCELLANEOUS
EXPENSES AND CERTIFYING TO THE COUNTY AUDITOR AT 5% INTEREST - LEVY # 27151
8.

Old Business

9.

New Business
a. Water Treatment Plant Bid Award, Prich

Dickson said there are two presentations regarding the WTP bid results and history of the need for the
WTP. Dickson said Deputy City Manager Imihy will address how WTP will be funding through fees.
Simons stated the following regarding the need for Water Treatment Facility:
• In 2020 the MN EPA issued health-based guidelines for manganese which is not treated by the
City
• City water supply is high in Iron which results in discoloration
• Both Manganese and Iron can be treated by a new Water Treatment Plant
• A WTP is a taxpayer dollar solution instead of in-home water treatment solutions
• Protect and preserve infrastructure both public and private
Solutions to Water Treatment:
• Phase 1 and Phase 2 underway since 2025
• Consider the construction of a WTP which removes Manganese and Iron and other
contaminants
• Design of the water treatment plant

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WTP overview:
• City owned 4-acre site off Evergreen Road
• 13,050 SF WTI to remove containments
• Treats 1500 gallons per minute or 1.8 million gallons per day
• Peak height of WTP is 31.5 feet
• Impervious coverage is less than 30% at the site
• Natural and cultural review process completed
• MN Department of Health Permit obtained
Bauman presented the WTP site plan:
• Bidding Environment was good
• Previous Engineers Estimate for the plan was $28.5M with $24.5 allocated for construction
costs
Bids for WTP were substantially more favorable to the following reasons:
• Timing of the bid – hit the contracting pool early while contractors are hungry for work
• Demand – not very high due to economy
• Materials Cost - Buy America, Build America projects have lessened impacts by the wars
overseas and tariffs
Simons said there were seven bidders which is more than any B and M have received previously.
Simons said B and M are familiar with five of the bidders which have built water treatment projects in
Minnesota. Simons said the bid results for the project were between $17.8 Million and $19.9 Million
among the seven bidders. Holt said the bids came in lower than expected which is great. Holt said he
is impressed with the bids which came in.
Bauman listed other portions of the overall project estimate:
• Power and Gas Supply _
• Contingency - $250K
• Subtotal Construction $900K
• Engineering and Admin $1.9Million
• Total Project Cost $20.9Million
Bauman listed funding received by the City so far:
• $1.9Million in Federal Appropriations in 2023 and 2025
• Emerging Contaminant Grant $3million or $5Minnilliom
• State of Minnesota Project Funding Ranks – Stayed at 15 points
Imihy listed funding Assumptions and Change Scenarios
• Increase in gas and electric franchise fees in 2027, 2029 and 2031
• Potential $3 or $5Million in Public Facility Authority Grant
• WTP project costs split evenly between 2027 and 2028
Imihy asked, Will Water rates increase?
• Rates will increase due to the City Water Fund debt of just under $3Million
• Favorable bids mean that building a WTP fits within existing planned rate increases
Imihy said the cost of site preparation has been funded through $10.3Million received by the City in
infrastructure site preparation
• $20.8 cost of Site Construction
• $31.1 Million total cost for the WTP project

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Imihy provided the following funding sources:
• $10.3Million - State Grants received
• $2.05 Million - Federal Grants received
• $250K from the City Water Fund (Power and Gas Supply) – cannot be funded by PFA Loan
• $3M-5Million - PFA Grant
• $15.5Million or 13.5million PFA Loan
• $31.1Million in total funding
Imihy listed funding scenarios below:
Scenario 1 • $15.5 Million Grant with annual $950K in debt service
Scenario 2 • $13.5 Million Grant with annual $734K in debt service
Imihy listed the Impacts of Water Charges and Franchise Fees:
• Ensure Adequate Cash Balance – Water Fund will be at positive cash in 2029 with target cash
achieved in 2033.
• No planned debt issuance beyond 2029
• Franchise Fees currently used in the Sewer and Water Funds. Increased Franchise Fees can
be used for a variety of different City projects.
• Water Rate increases can only be used for water related projects
• Water Rate Increases were listed based on the above two scenarios
Discussion ensued about options for use of Franchise Fees for the WTP funding. Imihy said
Franchise Fees are charged to residents which is allowed by Stature. Imihy said the proposal is to
raise Franchise Fees to $4/month currently to $6/month in 2027, $9/month in 2029 and $13.50/month
in 2031. Imihy said this funding mechanism would be used instead of funding through property taxes.
Castellano said the Council, over the past two years, planned to diversify revenue by increasing
Franchise Fees with higher users paying more.
Holt said the Council has talked about the impact to residents who are going to pay for the WTP either
through Franchise Fees or through some other source such as property taxes.
McEnaney said she would like to see more financing options including funding the project though the
water rates. McEnaney said she would like residents to see all funding options on the table.
Imihy presented the residential Impact in 2027 with a WTP funding scenario at $3.58 a month paid
through every residential water user.
Pugh said using Franchise Fees to pay for the WTP depends on Mound residents comfort with using
water fees to pay for the WTP. Pugh said the Council should provide a funding plan which can be
explained to residents.
Discussion ensued among staff and Council about showing different financing option scenarios with
using Franchise Fees, raising property taxes and other sources and the corresponding financial impact
on residents.

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Castellano said previous Council decisions agreed to charge higher Franchise Fees from large
institutional users.
Imihy said she will provide scenarios of where the funds would come from and the impact to individual
utility users.
Imihy listed Next Steps of the WTP project:
• Received Bid – October 13, 2026
• Bid is awarded - contract, grants and finalize funding the Fall of 2026
• November 10, 2026 - Financial Management Plan and Utility Rate Study Update and How the
funding for the WTP will be set
• November 24, 2026 - Utility Rate Adoption
• Construction begins - Spring 2027
• Interior construction of the WTP in 2028
• WTP goes online in 2028
Bauman said if the bid is approved by the Council he will get the project process moving forward.
MOTION by Holt, seconded by Pugh, to approve the following Resolution. Holt, Pugh, Castellano and
Herrick voted in favor. McEnaney abstained. Motion carried by a 4-0 vote.
Approve Resolution 26-71 Resolution Accepting Bid for Water Treatment Facility, City
Project No. PW-25-11
b. Resolution 26-70 Adopting Assessment for Misc. Expenses, Erdmann
Erdmann said the EFT policy was recommended by Abdo, the City Auditor and was reviewed by City
Attorney Landsman. Erdmann said EFT payments are becoming a more routine way of doing
business.
Erdmann said the EFT Policy establishes when the City makes electronic fund transfers
• Aligns the City Process with MN Statute
• Provides a consistent and controlled process for electronic payments
• Process establishes clear authority approval, documentation and reporting requirements.
• Written checks create vulnerability to fraud activity and there is a fraud filter in place
Allowable Transfers through EFT
• Payroll and investment transactions
• Tax settlements
• Retirement Contributions
• Vendor and Bond payments
Erdmann said approval of the EFT Policy by the City Council will establish delegated authority to the
City Manager and Finance Director who will provide approval to all EFT transfers.
MOTION by Castellano, seconded by Herrick, to approve the following Resolution. All voted in
favor. Motion carried.
Approve Resolution 26-70 Resolution Adopting City Electronic Funds Transfer Policy

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10. Announcements
a. Comments/Reports from Council Members:
Council Member Pugh – Pugh said the Gillespie Center has made major changes over the last
four years and are on their way in their efforts. Pugh said the dedication event of Lost Lake
Commons Park happened and it went nice.
Council Member McEnaney – McEnaney thanked Pugh for organizing the Lost Lake dedication
event. McEnaney said she would like to receive return contact info from residents trying to
contact her.
Council Member Castellano – Castellano had nothing.
Council Member Herrick – Herrick said the Andrew Sisters Trail signage which came down.
Prich said he didn’t know if there is a missing sign though the instruments in the former open
space are currently in storage. Herrick said the next Police Commission meeting is scheduled
for December 9, 2026. Herrick agreed with Pugh about the positive programs taking place at
the Gillespie Center and likes the intergeneration component the Gilespie Center is pursuing.
Mayor Holt – The Volunteer Appreciation Event is scheduled for December 7th.
b. Comments/Reports from City Manager: Imihy said Monday December 7th for the Volunteer
Appreciation Event. Dickson said
c.

Next City Council Regular Meeting: Tuesday, October 27, 2026 at 6:00 p.m.

11. Adjourn
MOTION by McEnaney, seconded by Herrick, to adjourn the City Council meeting at 9:43 p.m.
All voted in favor. Motion carried.
________________
Mayor Jason R. Holt

____________________
Attest: Kevin Kelly, Clerk

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Community Development
Department

City Council Item 5b.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Sarah Smith, Comm. Development Director and Public Works Director
Ryan Prich

Date:

October 22, 2026

Subject:

Public Gathering Permit for 2026 Mound Tree Lighting

RECOMMENDED ACTION - Review/action on Public Gathering Permit for the 2026
Mound Tree Lighting annual special event.
MOTION to approve Resolution No. 26-72 approving public gathering permit for 2026
Mound Tree Lighting on Thurs., November 19, 2026 and waiving fees and
damage deposit due to public purpose of gathering.
DISCUSSION
•

Details about the upcoming event are outlined in the permit application and
supporting materials that were submitted by the applicant. Some highlights
about this year’s tree lighting special event are provided below.

•

The tree lighting will be similar to previous events to include holiday activities and
music featuring a local choir performance and photos with Santa. Information
included in the special event checklist included mention that Westwood Church
may have llamas at this year’s special event however updated information is that
a donkey owned by church member may be included in the event. Additional
information has been requested.

•

A sound system will be used.

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•

Food and beverages will be available at the event. Applicant is responsible for
reaching out to Hennepin County regarding the need for a temporary food
license for the event.

•

Applicant is requested to provide information to Staff regarding plans for the
event in the event of inclement weather.

•

Temporary and/or portable signage for the event is subject to the regulations in
City Code 119 (signage) to include required permitting that may be needed.

•

Similar to 2024 and 2025, Staff recommends waiver of all involved local fees for
the event as this is a public event for the benefit for the entire community.

•

Parking for the event will take place at the Transit District parking deck and in
public parking lots; also public streets.

•

The applicant needs to coordinate with the Mound Public Works Department and
Hennepin County Transportation, if needed, regarding any local or county roads,
or portions thereof, that may need to be barricaded or closed to traffic for the
special event.

•

Applicant is required to contact the Mound Fire Department (MFD) regarding
tents/booths for the special event related to permitting.

•

Similar to 2024 and 2025, the entrance into the Veteran’s Park parking lot off of
Shoreline Drive across from the Post Office will be barricaded for the fire truck to
enter. Also, the other end of the parking lot spaces on the west side by True
Value will also be barricaded. Barricading of the event area will take place the
afternoon of November 19th (specific time TBD) and will be removed after the
event and cleanup activities are completed.

•

The Public Works Director contacted the Metro Transit Commission about bus
service on November 19th in the vicinity of the special event.

•

The Public Works Director or Superintendent will work with the MFD regarding
the recreational fire troughs that will be at the event to include required
permitting.

•

A Certificate of Insurance for the special event is required to be submitted to the
City for review and acceptance by the City Manager.

•

Staff notified the Administration Department, the Public Works Department, the
MFD and the Orono Police Department (OPD) about the upcoming request; also
involved public agencies.

•

Applicant is responsible for for coordinating with the Public Works Department
for assistance/equipment for the special event; also the OPD and MFD.

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RECOMMENDED ACTION
The City Council of the City of Mound approves the Public Gathering Permit for the
2026 Mound Tree Lighting special event in Veterans’ Park and Lost Lake Commons,
subject to the following conditions.
1.

Applicant shall be responsible for procurement of all required public agency permits
that are needed to hold the event (i.e., Hennepin County Transportation, Hennepin
County Health and Environmental Services, Three Rivers Park District, etc.)

2.

Applicant shall notify the City of its plans for the event in the event of inclement
weather.

3.

No signage can be placed upon private property unless permission from the private
property owner and/or other interested party has been provided to the applicant who
shall be responsible for obtaining same to include required permitting.

4.

Signage placement on City property is subject to review and approval by the City of
Mound. No signage shall be placed in a location so as to affect vehicular and
pedestrian traffic. The City of Mound reserves the right to modify sign placement in
the field.

5.

The submittal of a Certificate of Insurance, naming the City of Mound as an additional
insured, is required and shall be provided prior to the release and issuance of the
Public Gathering Permit for review and approval by the City Manager. Required
insurance and coverage shall be in accordance with the City’s established policies.

6.

If different from the application, contact information, including name and cell phone
number, for the person(s) who will be on site the day of the event shall be provided
prior to the release of the permit(s).

SUPPORTING INFORMATION
• Resolution
• Public Gathering Permit application

14

CITY OF MOUND
RESOLUTION NO. 26-72
RESOLUTION APPROVING PUBLIC GATHERING PERMIT
FOR 2026 TREE LIGHTING EVENT
ON THURSDAY, NOVEMBER 19, 2026 WITH WAIVER OF FEES AND DAMAGE DEPOSIT
DUE TO PUBLIC PURPOSE OF GATHERING
WHEREAS, Caroline Suttle, on behalf of Westonka Connect, submitted a Public Gathering
Permit application for the 43rd Annual Mound tree lighting ceremony to be held on Thursday,
November 19, 2026 from 6:00 p.m. to 8:00 p.m. at Veteran’s Park and Lost Lake Commons in
downtown Mound; and
WHEREAS, the 2026 Fee Schedule set a Public Gathering Permit Category I Location Fee at
$300 per day and the Damage Deposit at $500 per day; and
WHEREAS, the Mound Fire Department (MFD) Tent Permit Fee is $25; and
WHEREAS, City Staff has reviewed said application and has recommended reasonable
conditions to protect the public’s investment in its public parks and common areas as set forth in
a staff memo to the City Council dated October 22, 2026 (“Conditions”); and
WHEREAS, the City Manager and City Staff desire to waive the public gathering permit fee and
damage waiver and other related fees because the annual tree lighting ceremony is a public
event that benefits the community as a whole.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound as follows:
1. The recitals set forth above are incorporated into this Resolution.
2. Waiver of permit fees and damage deposit for the special event is in the public interest
due to the overwhelming public benefits.
3. The permit is approved for the 2026 Annual Mound Tree Lighting.
Adopted by the City Council this 27h day of October, 2026.

___________________________
Attest: Kevin Kelly, Clerk

_________________________
Jason R. Holt, Mayor

15

16

17

Engineering

City Council Item 5c.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Matt Bauman, PE, City Engineer

Date:

10/27/2026

Subject:
2026 Sewer Televising Pay Request 1 & Final
_____________________________________________________________________
RECOMMENDED ACTION:
MOTION TO approve Pay Request No. 1 & Final in the amount of $40,669.00 to American
Environmental for 2026 Sewer Televising project; City Project PW-26-04.
OVERVIEW
Please find enclosed Pay Request No. 1 from American Environmental for work
completed on the 2026 Sewer Televising project on October 15, 2026
We have reviewed the contractor’s request, verified quantities, and recommend
payment in the amount of $40,669.00 to American Environmental.
All work is complete and there is no withholding of retainage.
SUPPORTING INFORMATION
• Pay Request 1 & Final from American Environmental

18

10/22/2026

19

REQUEST FOR PAYMENT
DATE:

PROJECT:

2026 SEWER TELEVISING PROJECT

CONTRACTOR:

American Environmental

FILEPATH:

H:\MOUN\26X143543000\7_Construction\D_Pay Applications\[143543 2026 Sewer Televising Pay App.xlsx]PR1

ORIGINAL BID
ITEM
NO.
1
2
3
4

1 & FINAL

REQUEST NO.:

10/15/2026

BID ITEM
MOBILIZATION
TRAFFIC CONTROL
TELEVISE SANITARY SEWER (ANY SIZE)
REVERSE SETUP

UNIT

BID
QUANTITY

LS
LS
LF
EACH

1
1
40,165
25

COMPLETED
UNIT
PRICE
$4,300.00
$7,200.00
$0.75

THIS MONTH
QUANTITY
AMOUNT

TO DATE
QUANTITY
AMOUNT

1.00
1.00
38,892.00
13.00

1.00
1.00
38,892.00
13.00

TOTAL AMOUNT

20

$4,300.00
$7,200.00
$29,169.00

$40,669.00

$4,300.00
$7,200.00
$29,169.00

$40,669.00

Community Development
Department

Council Agenda Item 6a.
TO:

Honorable Mayor and City Council and
Jesse Dickson, City Manager

FROM:

Sarah Smith, Community Development Director

DATE:

October 22, 2026

SUBJECT:

Council Introduction – Review of Concept Plan for
Property 6221 Lynwood Boulevard

PURPOSE
Council Introduction of Concept Plan for Property at 6221 Lynwood Boulevard
INFORMATION
As established in City Policy No. 012 Development Application Review Procedures,
Jason Palmby of Magellan Land Development will be presenting a concept plan as a
Council Introduction for a proposed residential development of the property at 6221
Lynwood Boulevard in Mound. The proposed concept includes 30 twinhomes with a
cul-de-sac that leads to Lynwood Boulevard via Robin Lane. The property owner has
consented to the concept plan for the Council Introduction.
As the Council is aware, the purpose of the concept introduction is to provide City
Council members the opportunity to review the basic elements of the proposed project
and to provide direction about any refinements or issues that should be researched or
addressed prior to making a formal application. There will be no formal motions or
votes.
As this is a Council Introduction of a concept, Staff will not be summarizing the concept,
making a recommendation, or making a presentation. As required by City Policy No.
012, Staff did send property owners within 350 feet a letter on October 15th informing
them of the Council Introduction about the proposed concept and notifying them of the
opportunity to provide comment at the October 27th City Council meeting. It was also
emailed to staff/departments/agencies/utilities.
ATTACHMENTS
• Concept plan summary and graphics from Magellan Land Development
• Aerial graphic of subject property from Hennepin County Property Website

21

22

23

Concept Sketch Plan: PUD

Langdon Lake (Rec Devel) Residen al PUD
Density and allowable unit calcula on - 200' Tier 1, 267' Tiers 2-4

Tier
1
2
3
4
Total

Total
Area

Unsuitable
Area

Minimum
Suitable
Twinhome Lot Size
Area
(per duplex)

n/a
18,508
87,183
107,866
213,557
4.9 ac

18,508
87,183
40,296
145,987
3.1 ac

0
0
67,570
67,570
1.8 ac.

14,000
14,000
14,000

Base Density
(duplexes)

0.0
0.0
4.8
4.8

Allowable
Bonus
dupl. per er Proposed
Density
with Bonus Duplexes
Factor
Density
2.0
3.0
3.0

0.0
0.0
14.5
14.5

0
0
2.5
2.5

Riparian Lot size - (NOT APPLICABLE)
Nonriparian lot size - 14,000
(Twinhome R-2 standard)
Unsuitable area includes wetlands
Minimum 50% of gross shoreland area (PUD Openspace requirement): 106778 sf, or 2.45 ac req'd
Minimum structure setback from OHWL - N/A

Phone
(952) 937-5150
Fax
(952) 937-5822
Toll Free (888) 937-5150

12701 Whitewater Drive
Minnetonka, MN 55343
westwoodps.com

Westwood Professional Services, Inc.

Magellan Land
Development

OS provided: 4.5 ac

Borg Properties
24

Mound, MN

25

26

Source: Hennepin County Property GIS

27

Finance

City Council Item 6b.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Lindsey Erdmann, Finance Director

Date:

October 27, 2026

Subject:
2025 Audit and Annual Comprehensive Financial Report
_____________________________________________________________________
RECOMMENDED ACTION:
MOTION to accept the 2025 Audit.
OVERVIEW: Abdo has completed the City’s Audit for the year ended December 31,
2025. The Auditor’s Report is dated September 24, 2026. Justin Nilson, Partner will
present their results. The Executive Governance Summary and Other Required Reports
are attached. Due to its size the Annual Comprehensive Report is not included in the
packet. It is available on the City’s online document archives:
2025 Annual Comprehensive Financial Report
SUPPORTING INFORMATION
• Link for Annual Financial Reports

28

Executive Governance
Summary

City of Mound
Mound, Minnesota

For the year ended December 31, 2025

29

September 24, 2026
Management, Honorable Mayor and City Council
City of Mound, Minnesota
We have audited the financial statements of the governmental activities, the business-type activities, each major fund and
the aggregate remaining fund information of the City of Mound, Minnesota (the City), for the year ended
December 31, 2025 and have issued our report thereon dated September 24, 2026. Professional standards require that we
provide you with information about our responsibilities under generally accepted auditing standards, as well as certain
information related to the planned scope and timing of our audit. We have communicated such information in our letter to
you dated December 3, 2025. Professional standards also require that we provide you the following information related to
our audit.
Significant Audit Findings
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected
and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal
control, described below as item 2025-001, 2025-002, and 2025-003 that we consider to be significant deficiencies.

2
30

Finding

Description

2025-001

Limited Segregation of Duties

Condition:

The City of Mound did not have adequate procedures in place to ensure that accounting activities
were appropriately reviewed by an individual independent of the accounting function. Specifically,
the City did not consistently document or perform an independent review of accounting activity,
including general ledger activity, bank reconciliations, journal entries, credit card statements
and/or other accounting records, as applicable.

Criteria:

Management is responsible for establishing and maintaining effective internal controls over the
City's accounting activities and financial reporting. Effective internal controls include appropriate
monitoring and review of accounting activity to help ensure transactions are properly authorized,
recorded, and reported. The Minnesota Office of the State Auditor recommends that local
governments establish and document accounting policies and procedures and monitor internal
controls to ensure they are operating effectively.

Cause:

The City had not consistently implemented procedures assigning responsibility for an
independent review of accounting activities and documenting the review performed.

Effect:

Without adequate independent review, errors, omissions, or inappropriate transactions may not
be detected and corrected in a timely manner. The lack of documented review also reduces the
City's ability to demonstrate that accounting activity is subject to appropriate oversight and
increases the risk that financial information may not be complete or accurate.

Recommendation:

We recommend the City establish procedures requiring an individual independent of the
accounting function to periodically review significant accounting activities. The review should
include, as appropriate, bank reconciliations, general ledger activity, journal entries, credit card
statements, and other financial reports. The reviewer should document the review performed,
including the date of review and any questions or exceptions identified and resolved. The City's
accounting policies and procedures should clearly identify the individual responsible for
performing and documenting these reviews.

Management Response:
The City agrees with the finding and is working to hire sufficient staff to ensure accounting activities are independently
reviewed and that the review is appropriately documented.

3
31

Finding

Description

2025-002

Preparation of Financial Statements

Condition:

As in prior years, we were requested to draft the audited financial statements and related
footnote disclosures as part of our regular audit services. Auditing standards require auditors to
communicate this situation to the City Council as an internal control deficiency. Ultimately, it is
management’s responsibility to provide for the preparation of your statements and footnotes,
and the responsibility of the auditor to determine the fairness of presentation of those
statements. It is our responsibility to inform you that this deficiency could result in a material
misstatement to the financial statements that could have been prevented or detected by your
management. Essentially, the auditors cannot be part of your internal control process.

Criteria:

Internal controls should be in place to provide reasonable checks and balances over financial
reporting.

Cause:

From a practical standpoint, we both prepare your statements and determine the fairness of that
presentation at the same time in connection with our audit.

Effect:

The effectiveness of the internal control system relies on enforcement by management. The
effect of deficiencies in internal controls can result in undetected errors in financial reporting.

Recommendation:

Under these circumstances, the most effective controls lie in management’s knowledge of the
City’s financial operations. It is the responsibility of management and those charged with
governance to make the decision whether to accept the degree of risk associated with this
condition because of cost and other considerations. Regarding the specific situation listed
above, we would offer the following specific recommendation: 1) Utilize a disclosure checklist to
ensure all required disclosures are present and agree to work papers, and 2) Agree your Banyon
revenue and expenditure information to the amount reported in the financial statements.

Management Response:
For now, the City’s management accepts the degree of risk associated with this condition and thoroughly reviews a draft
of the financial statements.

4
32

Finding

Description

2025-003

Inadequate Retention of Receipts

Condition:

The City was unable to provide supporting receipts or other documentation for certain revenues
collected during the audit period. As a result, adequate documentation was not available to
substantiate the amount, source, and/or nature of certain revenues recorded in the City’s
accounting records.

Criteria:

The City should maintain adequate supporting documentation for financial transactions and
retain records necessary to demonstrate that revenues received are complete, accurate, properly
recorded, and supported in accordance with applicable record-retention and internal control
requirements.

Cause:

City personnel did not consistently retain receipts and other supporting documentation for all
revenue transactions.

Effect:

Failure to retain receipts and supporting documentation increases the risk that revenues may not
be properly accounted for or deposited and limits the City’s ability to demonstrate that recorded
revenues are complete and accurate. It also weakens the audit trail and the effectiveness of the
City’s internal controls over cash receipts.

Recommendation:

We recommend the City establish and consistently follow procedures requiring receipts and other
supporting documentation for all applicable revenue transactions to be retained in an organized
manner for the required record-retention period. Management should periodically review revenue
records to ensure that supporting documentation is complete and available.

Management Response:
The City agrees with the finding described above and plans to implement procedures to ensure that receipts and
supporting documentation for all revenues are retained in future years.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not the objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed two instances of noncompliance or other matters that are
required to be reported in accordance with the Government Auditing Standards or Minnesota statues noted below as
finding 2025-004 and 2025-005.

5
33

Finding

Description

2025-004

Incomplete Payment Listings Provided to City Council for Approval

Condition:

The City of Mound did not consistently provide the City Council with complete listings of
payments made from City funds for review at council meetings. During the audit period, the
payment listings provided to the City Council did not include all payments made by the City. As a
result, the City Council did not have a complete listing of payments available to review and
approve, or to review for informational purposes when payment authority had been delegated.

Criteria:

Minn. Stat. § 412.271, subd. 1, provides that, except for specified payments and other statutory
exceptions, no order for disbursement of city funds may be issued until the related claim has
been audited and allowed by the city council. Under Minn. Stat. § 412.271, subd. 8, a city council
may delegate its authority to pay certain claims to a city administrative official if the council
establishes appropriate internal accounting and administrative controls and regularly and
frequently reviews the official's actions. The statute further requires that a list of all claims paid
under delegated authority be presented to the council at the next regularly scheduled meeting
after payment. Minn. Stat. § 471.381, subd. 1, authorizes cities to make payments of claims and
obligations by warrant, check, or electronic funds transfer but does not eliminate the governing
body's responsibility to establish appropriate authority and controls over those payments.

Cause:

The City had not established and consistently followed procedures to ensure that complete
payment listings were provided to the City Council for review at the required council meetings.

Effect:

When complete payment listings are not provided to the City Council, the Council cannot
effectively review all payments made by the City or, when authority has been delegated, review
the actions of the city administrative official as required by statute. This weakens controls over
the disbursement of public funds and increases the risk that inaccurate, unauthorized, or
inappropriate payments may not be detected in a timely manner.

Recommendation:

We recommend the City establish procedures to ensure that complete listings of all payments are
provided to the City Council at each applicable council meeting. If the City has delegated
authority to pay certain claims under Minn. Stat. § 412.271, subd. 8, the City should ensure that a
list of all claims paid under the delegated authority is presented to the City Council at the next
regularly scheduled meeting after payment. The City should also maintain documentation
demonstrating the Council's review of the payment listings.

Management Response:
The City agrees with the finding noted above and plans to implement procedures to ensure that complete payment
listings are provided to the City Council for review in accordance with applicable statutory requirements.

6
34

Finding

Description

2025-005

Time Period for Payment

Condition:

Auditing for legal compliance requires a review of the City’s payment of claims. Our audit
indicated an instance of non-compliance. We noted two instances out of a sample of 25 invoices
that were paid after the 35-day period.

Criteria:

Minnesota statute section 471.425 requires that the City pay bills within 35 days from receipt. If
the invoice is not paid within 35 days, interest at 1.5 percent per month is to be added to amount
due.

Cause:

Unknown

Effect:

The City is in violation of this statute.

Recommendation:

We recommend that the City develop policies and procedures related to the accounts payable
cycle. These policies and procedures should include payment terms that are outlined within State
statutes.

Management Response:
With the hiring of additional finance staff, management will work towards developing procedures that are sufficient to
prevent future noncompliance.
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted
and the application of existing policies were not changed during the year ended December 31, 2025. We noted no
transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All
significant transactions have been recognized in the financial statements in the proper period
Additionally, management has chosen to not adopt GASB Statement No. 87, Accounting and Financial Reporting for
Leases, GASB Statement No. 75, Accounting and Financial Reporting by Employers for Postemployment Benefits other
than Pensions, and GASB Statement No. 68, Accounting and Financial Reporting for Pensions, for the Public Employee
Retirement Association nor the pension amounts related to the Volunteer Fire Department Relief Association, in the
governmental activities, business-type activities, and each major proprietary fund and, accordingly, has not shown activity
related to this standard. Accounting principles generally accepted in the United States of America require that pension
liabilities and balances be shown, which would report deferred outflows of resources, deferred inflows of resources and
liabilities or assets, while changing the net position in the applicable statements. As a result, our opinion is modified for
the Government-wide, Business-type and individual Enterprise funds.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected. The most sensitive
estimates affecting the financial statements are noted below.
•

Management’s estimate of depreciation is based on estimated useful lives of the assets. Depreciation is
calculated using the straight-line method.

•

Allocations of gross wages and payroll benefits are approved by City Council within the City’s budget and are
derived from each employee’s estimated time to be spent servicing the respective functions of the City. These
allocations are also used in allocating accrued compensated absences payable.

7
35

We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable
in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral,
consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than
those that are trivial, and communicate them to the appropriate level of management. Management has corrected all
such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by
management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a
whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter
dated September 24, 2026.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting
principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on
those statements, our professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Matters
We were engaged to report on the supplementary information (combining and individual fund financial statements and
schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information,
we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United States of America,
the method of preparing it has not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal
course of our professional relationship and our responses were not a condition to our retention.

8
36

Future Accounting Standard Changes
The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact
on future City’s financial statements:
GASB Statement No. 103 – Financial Reporting Model Improvements

Effective: 12/31/2026

GASB Statement No. 104 – Disclosure of Certain Capital Assets

Effective: 12/31/2026

Further information on upcoming GASB pronouncements.
****
Restriction on Use
This purpose of this communication is solely for the information and use of the City Council and management of the City
and is not intended to be, and should not be used by anyone other than those specified parties.
Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the
accounting records and related data. The comments and recommendations in the report are purely constructive in nature,
and should be read in this context.
If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your
convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation
extended to us by your staff.

Abdo
Minneapolis, Minnesota
September 24, 2026

9
37

2025 Financial Statement Audit

City of Mound

38

Introduction

abdosolutions.com

• Audit Results
• General Fund Results
• Other Governmental Funds
• Enterprise Funds
• Key Performance Indicators

2

39

2

3

Audit Results

Auditor’s Opinion

Minnesota Legal
Compliance

modified opinion for
GASB 87, 75, 68
- Control Findings
Noted on next
slide

Two instances of
noncompliance

40

AUDIT RESULTS

Fiscal Year 2025 Findings
Limited of Segregation of Duties
•

•

Preparation of Financial Statements
•

•

Internal Control Finding

Incomplete Claims List Provided to City Council
•

•

Internal Control Finding

Inadequate Retention of Receipts
•

•

Internal Control Finding

Legal Compliance Finding

Late Payment of Claims
•

Legal Compliance Finding

abdosolutions.com

•

4

41

General Fund Budget to Fund Balance
$8,000,000
$7,000,000

$7,113,579

$6,000,000
$5,863,470

$5,000,000
$4,000,000

$6,399,501

$6,910,382

$7,223,908

71.0%

64.0%
56.7%

52.4%

51.3%

$3,000,000

abdosolutions.com

$2,000,000

20%

20%

20%

20%

20%

2022

2023

2024

2025

$1,000,000
$2021

Unrestricted Fund Balance

Budget

5

42

2026

Minimum Fund Balance Policy

General Fund Budget to Actual
Original and Final
Budget Amounts

abdosolutions.com

Revenues
Expenditures

Variance with
Final Budget

6,910,382
6,218,140

$ 7,318,931
5,927,096

Excess (Deficiency) of Revenues
Over (Under) Expenditures

692,242

1,391,835

699,593

Other Financing Sources (Uses)
Transfers out

(692,242)

(692,242)

-

Change in Fund Balances

-

699,593

699,593

Fund Balances, January 1

4,426,023

4,426,023

-

4,426,023

$ 5,125,616

Fund Balances, December 31

$

Actual
Amounts

$

6

43

$

$

408,549
291,044

699,593

General Fund Revenues, Expenditures,
and Other Financing Sources (Uses)
Revenues and Transfers In

abdosolutions.com

$7,000,000

Expenditures and Transfers Out

$3,500,000

$6,000,000

$3,000,000

$5,000,000

$2,500,000

$4,000,000

$2,000,000

$3,000,000

$1,500,000

$2,000,000

$1,000,000

$1,000,000

$500,000

$-

$-

Taxes

Charges for Services Intergovernmental
2023

2024

General
Government

Other

2025

Public Safety
2023

7

44

Public Works
2024

Culture and
Recreation
2025

Other

Special Revenue Fund Balances
Fund
Major
Area Fire Service
Nonmajor
Dock
HRA

$

Total

Fund Balances
2024
2025

Increase
(Decrease)

574,290

$

$

704,054

378,721
328,581

382,311
416,930

$ 1,281,592

$ 1,503,295

$1,800,000
$1,500,000

abdosolutions.com

$1,200,000
$900,000
$600,000

$300,000
$-

8

Nonspendable

Assigned

2023

45

2024

2025

129,764
3,590
88,349

$

221,703

Debt Service Funds
Note: Bonds Listed are Governmental and Do Not Include Enterprise Debt
Debt Description

Fund No.

December 31, 2025
Total
Assets

Total
Cash

Debt Service Funds
355
G.O. Tax Increment Bonds 2006 & 2013B
350
G.O. Tax Abatement Bonds, 2015B
375
G.O. Tax Increment Refunding Bonds 2018A
364
G.O. Bonds 2020A
365
G.O. Bonds 2012A
310
G.O. Bonds 2013A
311
G.O. Bonds 2014A
312
G.O. Bonds 2015A
313
G.O. Bonds 2016A
Total Debt Service Funds
Other Fund(s)
222
G.O. Bonds 2016A, 2020A
Total

$

1,501,088
235,158
385,615
449,837
449,178
471,569
275,975
281,831
117,134
4,167,385

$

775,874
$

1,503,859
235,158
389,258
529,673
569,701
625,280
344,152
379,868
238,799
4,815,748

$

775,874

4,943,259

$

5,591,622

Total Future Scheduled Interest Payments

Final
Maturity
Date

Remaining
Bonds

110,000
1,575,000
1,130,000
1,075,000
510,000
830,000
270,000
635,000
1,085,000
7,220,000

08/15/26
02/01/35
02/01/31
02/01/28
02/01/28
02/01/29
02/01/30
02/01/32
02/01/32

120,000

02/01/30

$

7,340,000

$

692,639

abdosolutions.com

$2,000,000
$1,750,000

$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000

9

$250,000
$-

2026

2027

2028

2029

46

2030

Principal

2031
Interest

2032

2033

2034

2035

Capital Projects Fund Balances
Fund Balances
2024
2025

Increase
(Decrease)

Major
Capital Improvements
Nonmajor
Capital Replacement Vehicles
Community Investment
Capital Replacement Buildings
Street Maintenance
TIF 1-1
Total

$ 2,344,817

$ 2,205,053

500,964
374,755
388,191
977,279
55,180

461,203
93,811
518,844
1,055,523
67,655

$ 4,641,186

$ 4,402,089

$5,000,000

abdosolutions.com

$4,500,000
$4,000,000

$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000

$1,000,000
10

$500,000
$Restricted

Assigned

47

2023

2024

2025

$

(139,764)
(39,761)
(280,944)
130,653
78,244
12,475

$

(239,097)

Liquor Fund
2023

Sales
Cost of Sales

2024
Percent

Total

2025
Percent

Total

Percent

Total

$ 3,857,129
(2,757,972)

100.0 %
(71.5)

$ 3,881,104
(2,705,563)

100.0 %
(69.7)

$ 3,681,270
(2,552,685)

100.0 %
(69.3)

100.0 %
(72.2)

Gross Profit
Operating Expenses

1,099,157
(710,737)

28.5
(18.4)

1,175,541
(731,274)

30.3
(18.8)

1,128,585
(767,953)

30.7
(20.9)

27.8
(20.5)

Operating Income
Nonoperating Expenses
Net Transfers

388,420
30,891
(300,000)

10.1
0.8
(7.8)

444,267
39,677
(360,000)

11.4
1.0
(9.3)

360,632
34,438
(360,000)

9.8
0.9
(9.8)

7.3
1.1
(1.7)

119,311

3.1 %

$

123,944

3.1 %

0.9 %

6.7 %

$
$

2,000
-

Change in Net Position

$

Cash
Due from other funds

$ 1,213,462
$
-

$

35,070

$
2,000
$ 1,546,734

$4,500,000
$4,000,000

abdosolutions.com

$3,500,000
$3,000,000

$2,500,000
$2,000,000
$1,500,000

28.5%

30.3%

2023

2024

30.7%

$1,000,000
$500,000

11

2024 Statewide
Average

$Sales

Gross Profit

48

Operating Income

2025

Cash, Temporary Investments, and Due from Other funds

$3,000,000

$2,500,000

$2,000,000

$1,500,000

Water Fund

$1,000,000

$500,000

$2022

2022

2023
Operating Receipts

2023

2024

2024

Operating Costs

2025
Debt Payments

$3,000,000
$2,000,000
$1,000,000

abdosolutions.com

$$(1,000,000)
$(2,000,000)

$(3,721,476)

$(4,436,818)

$(4,474,206)

$(5,604,041)

$(3,000,000)
$(4,000,000)
$(5,000,000)

12

$(6,000,000)
2022
2023
2024
2025
Cash Due to Other Funds
Cash Balance
Minimum Target Cash Balance (Following Year Debt Service Plus 50% of Operating Costs)

49

2025

Cash Flows
from Operations
and Cash
Balances

$3,500,000
$3,000,000

Sewer
Fund

$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$2022

2022

2023

2023

Operating Receipts

2024

2024

Operating Costs

2025
Debt Payments

$4,500,000
$4,000,000
$3,935,219

$3,500,000

abdosolutions.com

$3,000,000

13

$3,042,515

$2,500,000
$2,000,000
$1,500,000

$1,689,148

$1,000,000
$1,070,628
$500,000
$2022
2023
2024
Cash Due from Other Funds
Unspent Bond Proceeds
Minimum Target Cash Balance (Following Year Debt Service Plus 50% of Operating Costs)

50

$2025

2025

Cash Flows
from
Operations
and Cash
Balances

$300,000

$250,000

Recycling
Fund

$200,000
$150,000
$100,000
$50,000
$2022

2022

2023

2023

Operating Receipts

2024

2024

2025

Operating Costs

$250,000
$227,871
$200,000

$202,570

$233,544

$213,232

abdosolutions.com

$150,000

14

$$100,000

$50,000

$2022

2023

2024

2025

Cash Due From Other Funds
Cash Balance
Minimum Target Cash Balance (Following Year Debt Service Plus 50%51
of Operating Costs)

2025

Cash Flows
from
Operations
and Cash
Balances

$500,000
$450,000

$400,000
$350,000

$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$2022

2022

2023

Operating Receipts

2023

2024

Operating Costs

2024

2025

Debt Payments

$1,000,000
$500,000

abdosolutions.com

$-

15

$(500,000)
$(1,000,000)
$(1,500,000)
$(2,000,000)

$(1,534,680)
$(1,775,533)
$(2,026,159)

$(2,194,819)

$(2,500,000)
2022
2023
2024
2025
Cash Due to Other Funds
Cash Balance
Minimum Target Cash Balance (Following Year Debt Service Plus 50% of Operating Costs)

52

2025

Storm Water
Fund
Cash Flows from
Operations and
Cash Balances

Cash and Investments Balances
$17,000,000
$14,791,525

$15,000,000
$13,000,000

$13,803,024

$11,412,286

$11,000,000
$9,000,000
$7,000,000
$5,000,000

abdosolutions.com

$3,000,000
$1,000,000
$(1,000,000)
2023

2024

2025

General Fund
Debt Service Funds

Capital Projects Funds
Enterprise Funds

Special Revenue Funds

16

53

KEY PERFORMANCE INDICATORS

Taxes
Tax Rates

70.0%

Taxes Per Capita
$1,500

60.0%

$1,300

50.0%

$1,100

40.0%

$900

$700

30.0%

$500

20.0%

$300

10.0%
abdosolutions.com

0.0%

$100
$(100)

Class 4 Cities

2021
$630

2022
$664

2023
$710

2024
N/A

2025
N/A

N/A

Cities in Hennepin County

$878

$918

$967

N/A

N/A

34.4%

City of Mound

$805

$823

$871

$902

$1,107

Class 4 Cities

2022
58.4%

2023
53.4%

2024
51.5%

2025
N/A

Cities in Hennepin County

39.3%

36.3%

36.8%

City of Mound

38.7%

31.3%

32.2%

17

54

KEY PERFORMANCE INDICATORS

Debt
Debt Per Capita
$5,000
$4,500

35.00%

$4,000

30.00%

$3,500

$3,000

25.00%

$2,500

20.00%

$2,000

15.00%

$1,500

10.00%

$1,000

5.00%

$500

abdosolutions.com

$-

Debt Service Expenditures as a Percent of
Total Expenditures

0.00%

2021

2022

2023

2024

2025

Class 4 Cities

$2,198

$2,195

$2,302

N/A

N/A

Cities in Hennepin County

$1,817

$1,914

$1,988

N/A

N/A

City of Mound

$4,607

$4,074

$3,549

$3,741

$3,193

18

55

2021

2022

2023

2024

2025

Class 4 Cities

13.38%

12.54%

11.82%

N/A

N/A

Cities in Hennepin County

12.62%

10.93%

9.75%

N/A

N/A

City of Mound

30.81%

29.21%

23.98%

17.23%

14.44%

KEY PERFORMANCE INDICATORS

Expenditures
Current Expenditures Per Capita
$1,200
$1,000
$800
$600

$400

abdosolutions.com

$200
$-

2021

2022

2023

2024

2025

Class 4 Cities

$856

$901

$948

N/A

N/A

Cities in Hennepin County

$929

$995

$1,055

N/A

N/A

City of Mound

$669

$716

$769

$825

$816

19

56

Alex

Alex

NILSON

TRIPPEL

WITTWER

CPA - Partner

CPA - Manager

Associate

Kayley

Joseph

O’LEARY

HINTGEN

Associate

Intern

57

abdosolutions.com

Your Abdo Team

Justin

20

Police

City Council Item 6c.
To:

Honorable Mayor and Council Members

From:

Jesse Dickson, City Manager

Date:

October 27, 2026

Subject:
ALPR (Flock) Cameras Discussion
_____________________________________________________________________
PURPOSE
Receive information on ALPR (Flock) cameras and other Orono Police topics.
INFORMATION
Staff has received questions regarding the use of ALPR (Flock) cameras in the City.
Orono Police Chief Chad Stensrud will provide an update on the current usage and
answer Council’s questions on the topic as well as any others the Council may have.
FUTURE ACTION
No action necessary.

58

Administration

City Council Item 6d.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Laila Imihy, AICP – Deputy City Manager

Date:

October 27, 2026

Subject:
Presentation of the Neogov Trailblazer Award
_____________________________________________________________________
PURPOSE
To present the City Council with the 2026 Trailblazer Award from Neogov
INFORMATION
Annually at their user conference, the City’s hiring platform Neogov recognizes local
governments who have agencies and individual leaders who demonstrate an innovative
spirit through the early adoption of human resources technology, process improvements,
and commitment to providing vital input for product enhancements.
This year, Deputy City Manager Imihy and the City of Mound received the Trailblazer
award for the City’s shift from a paper-based to a technology-based hiring process. This
has resulted in higher than ever applications for City positions, shorter recruitment
timelines and time staffed by HR staff.
Neogov shared that DCM Imihy and the City were nominated for the “leadership and
initiative you’ve shown in positioning the City of Mound as a true technology trailblazer
and setting your team up for success.”
Tonight, Staff presents the award for acceptance to the City Council.
FUTURE ACTION
None.

59

Finance

City Council Item 6e.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Laila Imihy, AICP – Deputy City Manager

Date:

October 27, 2026

Subject:
Water Treatment Plant Additional Funding Information
_____________________________________________________________________
PURPOSE
To provide additional context related to available financing options for the water
treatment plant.
INFORMATION
Background
At the City Council meeting on October 13, 2026 the City authorized entering into a
contract with Gridor Construction to construct a water treatment plant. At that meeting
staff presented options to repay the debt service on the water treatment plant should
the City Council approve the contract.
At that meeting staff presented a plan to maintain planned water rate increases per the
City’s financial management plan and to raise franchise fees to pay the debt service on
the loan for the plant. Questions were raised about other mechanisms that could be
used to pay for the debt service, such as property taxes or special assessments.
Tonight, Staff will share why these options were not modeled or considered and answer
any questions about updates to the Financial Management Plan which will be presented
in November.
Existing Context
The City has worked with municipal advisor Ehlers to model ways to repay the debt
service, this has been done with the following limits and assumptions:
• Limiting modeling to feasible alternatives: To be stewards of taxpayer
dollars, staff has not asked Ehlers to model alternatives which are not legally
feasible, would result in higher borrowing rates or “what if” scenarios. Utilizing
Ehlers can be costly, and Staff uses their time mindfully.
• Reducing long-term debt: The water, sewer and stormwater funds all carry
existing debt. All scenarios work to both provide a water treatment plant and
continue the City’s ongoing efforts to bring these funds out of debt.
• Use of a loan from the PFA: Borrowing money from the Public Facilities
Authority (PFA) can be done at a significantly lower rater than bonding for a
project. A lower interest rate reduces the annual debt service on the project,

60

•

lowering the overall cost of the project. Using this type of loan limits the ways the
City can pay back the debt on this project.
PFA Grant: The City assumes a $5 million dollar loan from the PFA, however if
the City does not use the PFA for the low-interest loan, it will not receive this
grant increasing the cost of the project.

Scenarios Not Considered
With the above limitations and considerations, the City has not modeled issuing a
special assessment or raising property taxes for this project. The reasons are as
follows:
• Special Assessments:
o What is it: A special assessment is a one-time mandatory fee charged to
property owners to pay for major projects that property taxes do not cover.
Residents must pay the full assessment within the year it is assessed, or
add it to their property to be paid annually with interest over a period of
time.
o Why was this not presented to the Council: Assessments are allowed
using the statutory authority granted under MN Statutes Chapter 429 and
444. A water plant falls under that authority, and the City could
theoretically use that method. However, the process by which a city
assesses requires that the city issue general obligation debt that the
assessments are dedicated to repay this debt. The low-interest loan from
the PFA does not meet that requirement, and the City would instead need
to bond for the plant.
o What if the City did this anyways? The City could choose this, however
the project costs would increase by several million to cover the increased
interest, the lost PFA grant and administrative charges associated with
bonding.
o What would it cost if we did this? Staff considered this a non-viable
solution given the increased cost, and so this was not modeled by Ehlers.
• Property Tax Revenues:
o What is it: The money paid to the City annually, based on the assessed
value of a property.
o Why was this not presented to the Council: Minnesota State Statute
444 prohibits the use of property taxes to pay for financial obligations of
the water fund. The use of property taxes to fund a water treatment plant
is not legal, as this type of facility is considered by the state an item that
is needed by the water fund and should be paid for with water fund
revenues.
Scenarios Considered
Given the above information, the City has limited ways to generate revenue to pay for
a water treatment plant. The following scenarios have been modeled:
• Raising Water Rates: The water treatment plant is an obligation of the water
fund. Water funds must rise to bring the fund out of debt and could rise further
to pay for some or all of the debt service on the water treatment plant.
• Raising Franchise Fees: Franchise fees are a fixed fee which appears on a
customer’s gas or electric utility bill and is then paid to the City from the utility
company. The utility company is not responsible for paying this fee, and all of

61

the fee is collected by the City. The City could raise these fees to offset raises to
water bills.
This presentation is informational, and tonight, the Council is not asked to make any
decision on water treatment plant debt repayment.
FUTURE ACTION
The City Council will review detailed debt repayment scenarios for the water treatment
plant at their regularly scheduled meeting on November 10, 2026

62

Community Development
Department

City Council Item 7a.
To:

Honorable Mayor and Council Members
Jesse Dickson, City Manager

From:

Sarah Smith, Comm. Development Director and Public Works Director
Ryan Prich

Date:

October 22, 2026

Subject:

Public Hearing – Vacation of City Easement for Sanitary Sewer/Lift Station
on Property at 1604 Dove Lane

RECOMMENDED ACTION - Review/action on request to vacate easement for sanitary
sewer/lift station purposes at 1604 Dove Lane.
MOTION to approve Resolution No. 26-73 vacating certain easements located in the
City of Mound, County of Hennepin, State of Minnesota.
DISCUSSION
At its October 27, 2026 meeting, the Mound City Council will hold a public hearing to
consider an application from the City of Mound to vacate a perpetual easement for
sanitary sewer lift station purposes that encumbers the property at 1604 Dove Lane
owned by Beth Luther. The easement is requested to be vacated as the sanitary sewer
lift station was recently removed and a new/ replacement lift station was constructed in
an alternate location. Therefore, the current easement for sanitary sewer/lift station
purposes is no longer needed. See below aerial graphic of the property at 1604 Dove
Lane from the Hennepin County Property Information website.

63

The lift station was located in the northwest corner of the property near the intersection
of Dove Lane and Woodland Road. Please see below aerial graphic of the property at
1604 Dove Lane from the Hennepin County Property Information website.

Details about the proposed easement are contained in Planning Report No. 26-10 which
has been included as an attachment.
NOTIFICATION
The required publication and mailing requirements to hold the public hearing for the
easement vacation have been satisfied. Notification about the City Council public
hearing for the requested vacation was also emailed to
staff/departments/consultants/public agency/utility review. In addition to comments
previously received that are summarized in the Planning Report, the City received an
additional email from Christina Neel from Hennepin County Transportation that they
have no concerns or objections to the easement vacation.
OVERVIEW OF PLANNING COMMISSION REVIEW AND RECOMMENDATION
Staff provided an overview of the request which includes vacation of an easement for
sanitary sewer/lift station in the corner of the property at 1604 Dove Lane. The lift
station was removed and moved to another location so the easement is no longer
needed. As this is a City easement, the City is the applicant. Beth Luther, the owner of
the property at 1604 Dove Lane where the easement is located, was present at the
meeting. No other persons were present. Ms. Luther would like to install a fence in the
subject and was previously granted a variance. The vacation of the easement will allow
her to complete her fence project.
Based on its review, the Planning Commission unanimously voted to recommend City
Council approval of the vacation request as recommended by Staff. Details about the
Planning Commissions’ review of the easement vacation are included in the draft
October 6, 2026 meeting minutes which have been included as an attachment.

64

SUPPORTING INFORMATION
• Resolution
• (Draft) October 6, 2026 Planning Commission meeting excerpts
• Planning Report No. 26-10.
ADDITIONAL INFORMATION
• a 4/5’s vote of the entire City Council is required (4 members) to approve a
vacation when there has been no petition.

65

CITY OF MOUND
RESOLUTION NO. 26-73
RESOLUTION VACATING CERTAIN EASEMENTS
LOCATED IN THE CITY OF MOUND,
COUNTY OF HENNEPIN,
STATE OF MINNESOTA
WHEREAS, currently there is a perpetual easement for sanitary sewer lift station
purposes over, under, and across that property legally described on attached Exhibit A
(“Easement”); and
WHEREAS, a public hearing regarding the vacation of the Easement was held by the
City Council on the 27th day of October, 2026, at which hearing all persons interested to
be heard thereon were given an opportunity to be heard; and
WHEREAS, the Easement is no longer needed by the City and a vacation of the
Easement is in the best interest of the public; and
WHEREAS, the vacation of the Easement was reviewed by the Planning Commission
at its October 6, 2026 meeting and recommended for approval as recommended by
Staff to include conditions and findings of fact.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota that the Easement is herein and hereby vacated, which vacation shall not
become effective until: (i) the comments from the City Engineer are addressed, to the
satisfaction of the City Engineer, as part of the City Council’s action on the easement
vacation; and (ii) a Notice of Completion Vacation Proceedings bearing the City’s seal is
recorded in the Office of the Hennepin County Recorder and/or the Hennepin County
Registrar of Titles. The recording of a Notice of Completion of Vacation Proceedings
shall be evidence that all conditions of this Resolution have been satisfied. Upon
recording of a Notice of Completion Vacation Proceedings any existing sanitary sewer
facilities located within the Easement shall be considered abandoned and not City
property.
NOW, THEREFORE BE IT FURTHER RESOLVED, the City Council of the City of
Mound’s approval of the vacation of the Easement based on the following finding of fact:
1.

There is no public benefit to retaining the sanitary sewer easement as the
lift station was removed and a new lift station was constructed in another
location.

1

66

Adopted by the City Council on this 27th day of October, 2026.
________________________________
Jason R. Holt, Mayor
____________________________
Attest: Kevin Kelly, City Clerk

2

67

EXHIBIT A
Legal Description of the Easement
A perpetual easement for sanitary sewer lift station purposes within the
Northeasterly 20 feet of the Northwesterly 30 feet of Lot 24, Block 10,
WOODLAND POINT ADDITION, according to recorded plat thereof, Hennepin
County, Minnesota, as described in Document No. 794369, filed in the Office of
the Registrar of Titles, Hennepin County, Minnesota.

3

68

MEETING MINUTES (DRAFT) EXCERPTS
REGULAR PLANNING COMMISSION
OCTOBER 6, 2026
Call to Order
Chair Goode called the meeting to order at 6:00 p.m.
Roll Call
Members present:

David Goode, Kathy McEnaney, Samantha Wacker, Drew Heal, and
Kristin Young

Members absent:

Nick Rosener and Jason Baker

Staff present:

Sarah Smith and Johnny Menhennet

Others present:

Beth Luther, 1604 Dove Lane

Board of Adjustment and Appeals
Review/Discussion/Recommendation – Planning Case No. 26-10
Vacation of Perpetual Sanitary Sewer Easement for City Life Station, 1604 Dove Lane
Community Development Director Sarah Smith presented a city-initiated request, with the
Director of Public Works as applicant, to vacate a sanitary sewer and lift station easement in
the northwest corner of 1604 Dove Lane. The lift station was recently decommissioned and
its infrastructure removed. Some abandoned equipment remains underground, filled and
sealed, and will not be removed. Since the easement is no longer needed, staff
recommended releasing it.
Community Development Director Smith noted that state statute does not require Planning
Commission review of a vacation request but Mound’s process includes Planning
Commission review prior to City Council review and public hearing. Notice for the City
Council public hearing is being published in the local paper on October 10 and 17, 2026 and
written notice will be sent to affected property owners. The City Council public hearing is
scheduled for October 27, 2026. Comments from MCES, Hennepin County, and the Fire
Chief raised no objections. The property owner has been in discussion with the City for some
time and previously received approvals to install temporary fencing in the area, which she
can now complete.
In response to a question from a Planning Commission member, staff confirmed that leaving
abandoned equipment in place was the plan when the infrastructure was removed. The
property owner spoke briefly during the discussion.
MOTION by Commissioner Heal, seconded by Commission Wacker, to recommend approval
of the vacation application, as recommended by Staff. All voted in favor. MOTION passed
unanimously.

69

PLANNING REPORT
TO: Planning Commission
FROM: Sarah Smith, Community Development Dir.; Public Works Dir, Ryan Prich
DATE:

September 30, 2026

SUBJECT: Vacation - Perpetual Easement for Sanitary Sewer Lift Station Purposes at
1604 Dove Lane
APPLICANT: City of Mound
PLANNING CASE NUMBER: 26-10
ZONING: R-1A Single Family Residential
COMPREHENSIVE PLAN: Low Density Residential

SUMMARY
At its October 6, 2026 meeting, the Mound Planning Commission will consider an
application from the City of Mound to vacate a perpetual easement for sanitary sewer
lift station purposes that encumbers the property at 1604 Dove Lane owned by Beth
Luther. The easement is proposed to be vacated as the sanitary sewer lift station was
recently removed and a new/ replacement lift station was constructed in an alternate
location. Therefore, the current easement for sanitary sewer/lift station purposes is no
longer needed. See below aerial graphic of the property at 1604 Dove Lane from the
Hennepin County Property Information website. The lift station was located in the
northwest corner of the property near the intersection of Dove Lane and Woodland
Road:

70

INFORMATION/DISCUSSION
• Vacation. Minn. Stat. § 412.851 states that a statutory city may abandon
ownership or control over all or any part of the land they have set aside,
dedicated or used as streets or alleys. This action may be initiated by the City
Council by resolution or by the submission of a petition by the owners of at least
50 percent of the surrounding land area. Procedurally, state statutes require
that the City Council must hold a public hearing on the proposal following two
weeks of published notice and posted notice. The City must also provide
written notice to each affected owner at least ten days before the public
hearing.
If the street, alley, public grounds, public way, or any part thereof that is
proposed to be vacated terminates at or abuts upon any public water, no
vacation shall be made unless written notice of the petition or proposed
resolution is served by certified mail upon the Commissioner of Natural
Resources at least 60 days before the hearing on the matter. The notice is for
notification purposes only and does not create a right of intervention by the
Commissioner of Natural Resources.
As the easement being vacated does not terminate or abut any public water,
Staff has determined the 60-noltification to the MnDNR does not apply. The
MnDNR did receive standard notification of the vacation request as part of the
City’s staff/consultant/agency review process.
•

The process for vacating a public easement is the same process used for a public
road.

•

The date for the City Council public hearing for consideration of the easement
vacation is Tues., October 22, 2026 at 6:00 p.m.

•

There is no required timeline in Minnesota Statutes or City Code that require
action on a vacation application within a specific time period.

MEETING NOTIFICATION
An informational notice about the October 6th Planning Commission meeting and review
of the vacation application was mailed on September 30th to neighboring property
owners.
STAFF/CONSULTANT/PUBLIC AGENCY/PRIVATE UTILITY REVIEW AND COMMENTS
Copies of the request and supporting materials were forwarded to involved
staff/departments/consultant/public agency/private utilities for review and comment.
Comments received are provided below:

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Matt Bauman, City Engineer

Portions of the old lift station have been abandoned in place with the metal
structure remaining several feet below grade and filled with suitable fill.
Resident should acknowledge existence of old structure.
•

Scott Landsman, City Attorney

The vacation is governed by Minn. Stat. § 412.851 that allows vacation of
public grounds if it appears to be in the interest of the public.
Andy Drilling, Mound Fire Department

Ok for the fire department.

Christina Neel, Hennepin County Transportation
No comments from us, as this request does not abut a county roadway.
Thanks for sending this over for our review.
Chris Remus, Metropolitan Council Environmental Services
Thank you for the opportunity to review the above referenced. Metropolitan Council Interceptor Engineering has no facilities near the property in question and will be
providing no comments relating to this project. Others departments within the
Metropolitan Council may still provide comments if they deem necessary.

RECOMMENDATION
Staff recommends that the Planning Commission recommend City Council approval of
the sanitary sewer/lift station easement vacation located in the northwest corner of the
property at 1604 Dove Lane, subject to the following conditions:
1.

Comments from the City Engineer shall be addressed as part of the City Council’s
action on the easement vacation.

2.

The Notice of Completion of Vacation Proceeding of the easement vacation shall
be prepared and recorded at Hennepin County. Upon recording of a Notice of
Completion Vacation Proceedings any existing sanitary sewer facilities located
within the Easement shall be considered abandoned and not City property.

In recommending approval to vacate the utility easement for sanitary sewer/lift station
purposes, the following findings are offered:
1.

There is no public benefit to retaining the sanitary sewer easement as the lift
station was removed and a new lift station was constructed in another location.

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CITY COUNCIL REVIEW
The City Council public hearing for review of the proposed vacation of the perpetual
easement for sanitary sewer/lift station purposes is scheduled for Tuesday, October 22,
2026 at 6:00 p.m. following completion of the required publication and mailing
requirements to hold the public hearing for the proposed vacation.

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See below aerial graphic of the property at 1604 Dove Lane
Source: Hennepin County Property Information Website

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