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<br />reserves. She stated that the City should continue keeping at least six months of operating <br />expenses available to protect against unexpected financial obligations or payment defaults. While <br />she supported investing in needed equipment, she cautioned against reducing reserves below a <br />prudent level. <br /> <br />Mayor Heineman concluded the discussion by summarizing the consensus reached during the <br />workshop. He directed staff to refine the proposed budget by identifying essential operational <br />needs, reviewing capital priorities, evaluating available reserve funding, and returning with a <br />more focused proposal for future Council consideration. <br /> <br />2.03: Wage Theft & Project Labor Requirements <br /> <br />City Administrator Hagen explained that this discussion stemmed from a previous Council work <br />session on wage theft and project labor requirements. He said staff understood there was general <br />support for provisions that would allow the City to recover public funds if a developer or contractor <br />was found guilty of wage theft. Based on that direction, similar language from a Brooklyn Park <br />Tax Increment Financing agreement was included in the draft Trident development agreement. He <br />noted that Councilmember Riley and Mayor Heineman requested additional discussion because <br />the Council had not formally adopted a policy before the language was added. <br /> <br />Councilmember Riley questioned whether the development agreement needed to be approved that <br />evening, noting that the creation of the Tax Increment Financing district and related reimbursement <br />actions appeared to be the time-sensitive items. He suggested moving forward with those actions <br />while postponing the development agreement until the Council had more time to discuss the policy. <br /> <br />Mr. Hagen explained that the required public hearing could still proceed and recommended <br />approving the creation of the Tax Increment Financing district and the interfund loan while <br />delaying action on the development agreement if the Council wished to continue discussing the <br />wage theft provisions. <br /> <br />Councilmember Riley said he was surprised the language had been included in the agreement <br />because the Council had not reached consensus on what such a policy should contain. He said he <br />would like the Council to have a more detailed discussion before deciding whether to include those <br />provisions in future development agreements. <br /> <br />Councilmember Buscher thanked staff for including wage-theft language in the draft agreement <br />and said she appreciated the effort to address the Council's earlier discussion. She agreed the <br />Council had expressed interest in pursuing the issue but believed additional discussion was needed <br />before adopting specific contract language. She supported moving forward with the creation of the <br />Tax Increment Financing district and related funding while postponing the development agreement <br />so the Council could further review both the contract language and a broader policy. She also urged <br />that the discussion be scheduled soon because the City continues approving new development <br />projects. In addition, she raised concerns about language in the draft agreement that she said could <br />conflict with Minnesota's Construction Worker Wage Protection Act, noting that a labor attorney <br />had identified the issue and recommended a more thorough legal review before approval. <br /> <br />City Council Work Session / July 14, 2026 <br />Page 10 of 14 <br />