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01-14-2025 City Council Work SessionHOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 14, 2025 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, January 14, 2025, at 6:30 p.m. in the Raspberry Room at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Garrido, Goodlund, Hunke and Kuznia attending. Others attending included City Manager Mornson, Assistant City Manager Casella, City Clerk Domeier, Special Projects and Initiatives Manager Imihy, Director of Planning and Development Elverum, Community Development Manager Needham, Planner Krzos, Finance Director Bishop and City Attorney Sathe. PRESENTATIONS III.1. Housing Improvement Area Discussion; Needham Community Development Manager Needham anticipated an application soon for the establishment of a Housing Improvement Area (HIA) for the Summit on 7 condos. In advance of this application, staff wanted to review HIAs with Council and answer any questions. Doug Standness, Administrator of Summit on 7 shared more about their request for HIA financing, the project and community engagement. Brief discussion was held amongst the group about the process and questions with the proposed project. It is anticipated that the request will be considered by the City Council in February. III.2. 2026 Budget Kickoff; Bishop Finance Director Bishop requested feedback on the proposed 2026 budget calendar and discussed the financial projections. A first draft of the 2026 Budget and Tax Levy will be provided to the City Council in July. Budget Calendar The consensus was to move forward with the proposed budget calendar and continue the August community event. 2026 Financial Projections Mr. Bishop shared the financial projections for the 2026 budget. There were no comments on the proposed requests at this time. City Council Budget Mr. Bishop spoke to the City Council salaries based on the last ordinance approved in July 2023. The ordinance requires that staff review again for potential salaries in January 2026. The City Council supported pausing the salary increases for one year and until the next election. Discussion was held about having a consistent salary increase. Mr. Bishop also shared the travel, training and conference portion of the budget and possible reduction to the 2026 budget. The proposal was to limit City Council members to one national conference in a year and the LMC conference. Discussion was held about possible cost savings including early bird savings, service on NLC committees, hotel rates and deadlines on conference registrations. The general consensus was to do the limit of one national conference in a year. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 14, 2025 Next Steps Mr. Bishop shared the next steps in the budget process with the draft budget coming to City Council in July. Council Member Goodlund requested researching a zero to four percent request. Mr. Bishop cautioned the effect that could have on employee retention and satisfaction. He anticipated that positions would need to be cut in 2026. Council Member Hunke shared the budget includes the staffing results, facility improvements and infrastructure projects. Council Member Kuznia shared his concerns about only having a COLA adjustment and how that will affect customer service and service levels. Mayor Hanlon and Council Member Goodlund supported a four, six and eight percent tax increase with prioritization by staff for City Council consideration. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Kuznia, second by Hunke, the meeting was unanimously adjourned at 7:47 p.m. Respectfully Submitted, Amy Domeier, City Clerk