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<br />Councilmember Riley said the issue of people not paying their rental license fee for 2024 needs to <br />be addressed. He noted that after this has been addressed, they can look at the people who paid the <br />higher amount when they were supposed to. <br /> <br />Councilmember Musgrove suggested rather than refunding a portion of the rental license fee, they <br />could use it as a credit for next year’s fees. <br /> <br />Councilmember Howell said she likes this idea as well. She asked if they would still need to do a <br />background check on those rental property owners who have not yet paid their 2024 fees. <br /> <br />City Administrator Hagen noted that this code revision has not yet been adopted yet. He asked <br />City Attorney Knaak how they would approach this as the code is in the process of changing. <br /> <br />City Attorney Knaak explained that the City has the authority to decide not to do background <br />checks on a case-by-case basis while they wait for the code revisions. <br /> <br />Councilmember Musgrove asked if the utility fee increases are based on the increases that were <br />sent out with the utility rate and fee increases. <br /> <br />Finance Director Lund stated that the proposed utility fees are what would go out starting on the <br />April 2025 bill. She noted that these increases are to put money back into the sewer and water <br />funds. She added that this increase also takes into account the capital improvement projects that <br />are upcoming. She reviewed the needs of the utility funds. <br /> <br />Councilmember Musgrove asked if these increases would change if they get more funding from <br />the State. <br /> <br />Finance Manager Lund explained that they are currently getting $3,200,000 in grant funding and <br />this has been incorporated into the cash flow. She added that the cost to operate the water treatment <br />plant is still unknown. <br /> <br />Councilmember Musgrove asked about the new Minnesota State water supply connection fee. <br /> <br />Finance Director Lund said this is on the utility bill and has been for the last several years. She <br />added that this is a mandate by the State; however, she added it to the rates and charges for <br />awareness. <br /> <br />The consensus of the Council was to move forward with the discussed changes to the 2025 <br />schedule of rates, fees, and charges, including waiving the background check requirement for <br />rental property owners who have not yet paid their 2024 fees and direct Staff to bring these changes <br />back for final review by the Council. <br /> <br />2.04: Review Fund Balance Policy <br /> <br />Finance Director Lund reviewed the Staff report concerning the find balance policy. <br />City Council Work Session / October 22, 2024 <br />Page 8 of 15 <br /> <br />