06-09-2025 - Agenda Packet City Council - regular meeting

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AGENDA ITEM Date: June 9, 2025 Title: Stubbs Bay Lake Improvement District Public Hearing Presenter: Maggie Jin, Finance Director Section: Public Hearing Item: 12 Purpose: The purpose of this item is to hold a public hearing for the establishment of a lake improvement district for Stubbs Bay, and to consider the establishment of the Stubbs Bay Lake Improvement District. 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 improvements 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. At the May 12, 2025, Council meeting, the City Council set a public hearing on the establishment of the Stubbs Bay Lake Improvement District for June 9, 2025. Notices of the hearing was published in the newspaper on May 24 and May 31, each property owner affected have been sent a notification of this public hearing, and LMCD, MCWD, DNR, and other state agencies have been notified. 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. The petitions has been received for the establishment of the Stubbs Bay Lake Improvement District. The state law concerning lake improvement districts requires the City Council to hold a public hearing within 30 days of the certification of a petition for the establishment of a Lake Improvement District which is signed by a majority of the property owners in the district. The petition for the Stubbs Bay Lake Improvement District has been signed by 48 property owners out of a total of 68 property owners. The petition received to date have been verified by staff and has enough signatures. Per Minnesota State Statute 103B.521, it is required that a majority (51%) of property owners within the proposed lake improvement district sign the petition; to date, over 70% have signed. As required by state law, the Minnesota Department of Natural Resources (DNR) has reviewed the request to establish the Stubbs Bay Lake Improvement District and has approved the proposed boundaries identified in the resolution and has certified that the information provided meets the requirements of lake improvement district statutes and rules. If the City Council establishes a lake improvement district, the district does not become effective 234