05-12-2025 Agenda Packet Cc - regular meeting

Home Browse Search

Date: May 12, 2025 Item: 9 Presenter: Maggie Jin, Finance Director Section: Consent Agenda Title: Stubbs Bay Lake Improvement District 1.Purpose: The purpose of this item is to set a public hearing for the establishment of a lake improvement district for Stubbs Bay. 2.Background: At the April 14, 2025 Council meeting, Lake Minnetonka Association Director Eric Evenson and Stubbs Bay resident and bay captain Karena Casey gave an informational presentation requesting the set-up of a lake improvement district on Stubbs Bay. The lake improvement district would allow a steady stream of funds to be collected to allow for improvement to the lake in Stubbs Bay. The set-up of the district would allow funding to be collected by tax levy, by utility bills or by bills sent via the lake improvement district itself. The preferred method would be by tax levy. In order to set up a lake improvement district, a petition has to be signed by the majority of the affected property owners in the district. Karena Casey, who is the bay captain, has put in tremendous efforts to get the required amount of petition signatures and is now asking that City Council takes the next step, which is to set up a public hearing on the establishment of the Stubbs Bay Lake Improvement District. The full petition with names of the signors will be available at the public hearing. The petition received to date have been verified by staff and has enough signatures. Per Minnesota State Statute 103B.521, it is required that majority (51%) of property owners within the proposed lake improvement district sign the petition; to date, over 70% have signed. The next step to be taken is for Council to make a motion to hold a public hearing for the establishment of the lake improvement district. After the public hearing occurs, the Council can approve or deny the establishment of the Stubbs Bay Lake Improvement District. The DNR is still reviewing the lake improvement district. In order to certify the levy for tax year 2026, the district must be established by July 1st. Attached to this council item are an updated map of the district, proposal and plans for the district, and letter of support. 3.Cost: The initial cost of setting up the lake improvement district involves staff time to meet with the district organizers to assist with proper procedures, putting council packet items together, reviewing petitions and other administrative tasks. The ongoing cost of the lake improvement district is minimal with staff time to certify the assessment roll to the levy and adding yearly information on the City website. The cost of treating Stubbs Bay will be paid through a levy by the property owners. The funding will not begin until taxes payable in 2026. AGENDA ITEM 46