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Forest Lake council approves early TIF decertification, franchise fee increases, fee‑schedule changes, donation acceptance and settlement agreement
Summary
Council approved decertifying the Cherrywood and Centennial TIF districts (adding an estimated $217,729 of net tax capacity), adopted two ordinances to raise gas and electric franchise fees, updated the fee schedule to add a $10,000 final‑plan review escrow, accepted a $15,000 donation to the senior center, and approved an administrative citation
The Forest Lake City Council approved a package of budget and code actions at its regular meeting, including decertification of two tax increment financing (TIF) districts, ordinance changes to increase franchise fees, an update to the city fee schedule, acceptance of a private donation to the senior center, and an administrative citation settlement.
TIF decertification: Finance staff explained tax increment financing and said Cherrywood and Centennial TIF districts have met their obligations earlier than modeled. The council approved a resolution to decertify those districts and transfer TIF funds to pay an intra‑fund loan, which staff estimated would increase the city’s net tax capacity by about $217,729 for pay 2026. Staff said that decertifying the TIFs expands the city’s tax base and that the preliminary levy already reflected those changes.
Franchise fees and revenue options: City staff (Mark) proposed updating the city’s franchise fees for gas and electric, last set in 2013. The proposed adjustments are in 25‑cent increments consistent with public utility commission practice; staff noted the revenue may be used to support roads or to reduce the preliminary levy. The council approved ordinances 760 and 761 to allow the adjustments and also authorized summary publication (resolution noted in the packet).
Fee schedule update: Staff presented ordinance 762, amending city code chapter 35 to update the fee schedule and adding a final plan review escrow of $10,000 to cover consultant engineering review of final plats. Staff stressed this change moves a previously back‑charged cost to an upfront escrow rather than creating a new fee.
Donation: The council removed a generous donation from the consent agenda to publicly thank Lakes Area Asphalt Company and community volunteers for contributing time and materials (estimated at about $15,000) to resurface the senior center parking lot. The council approved the resolution accepting the donation.
Administrative citation settlement: Council approved a settlement agreement with Samara Montoya (property owner of 55 4th Avenue NW) to resolve a code enforcement action for unsheltered storage and unauthorized/inoperable vehicles. Under the agreement the owner will obtain a building permit and construct a structure to correct the violations within 12 months; failure to comply will reinstate the citation and allow the city to recoup costs.
Votes at a glance: - Approve agenda with addition of item 8e: approved unanimous. - Consent agenda (a–m, o): approved unanimous. - Resolution 111.10.25.03 accepting senior center donation: approved unanimous. - Resolution 11 10 25 01 decertifying Cherrywood and Centennial TIFs (estimated +$217,729 tax capacity): approved unanimous. - Ordinances 760 & 761 (franchise fee adjustments) and resolution 11‑10‑25‑02 (summary publication): approved unanimous. - Ordinance 762 (fee schedule amendment; $10,000 final plan review escrow): approved unanimous. - Settlement agreement with Samara Montoya (55 4th Ave NW): approved unanimous.
What’s next: Finance and staff will continue budget workshops and return with follow‑up details. The council scheduled a workshop next week to finalize budget direction prior to the truth‑in‑taxation meeting on Dec. 8.
