The URL can be used to link to this page

Home My WebLink About2025-05-06 Work Session Meeting MinutesPage 1 MINUTES OF THE EDINA CITY COUNCIL WORK SESSION COMMUNITY ROOM, CITY HALL TUESDAY, MAY 6, 2025 5:30 P.M. 1.0 CALL TO ORDER Mayor Hovland called the meeting to order at 5:30 p.m. 2.0 Roll Call Answering rollcall were Members Agnew, Jackson, Pierce, and Mayor Hovland. Absent at rollcall was Risser. Staff in attendance: Scott Neal, City Manager; Ari Lenz, Assistant City Manager; Pa Thao, Finance Director; Chad Millner, Engineering Director; Nate Kaderlik, Assistant Director-Utilities; Ross Bintner, Engineering Services Manager; Zoe Johnson, City Management Fellow; Jennifer Bennerotte, Communications Director; Ryan Browning, I.T. Director; and Sharon Allison, City Clerk. 3.1 2026-27 BUDGET DISCUSSION City Manager Neal introduced the topic. Finance Director Thao shared that planning was still in the early phases, with a full proposed City Manager budget set to be presented in August and a work session scheduled for May 20 to continue the discussion. Thao spoke about the 2026 Capital Budget and presented two options for Council to consider regarding the $2M levy for capital: the projects recommended at the retreat under a lower spending level, and an updated list if funding returns to $2M. Council discussed the need for more clarity on the impact of these decisions, especially how capital investments affect the overall levy rate and residents’ property taxes and a better way to see how different choices affect the total budget and tax impact. Council agreed it’s important to balance needed investments with what residents can reasonably support, especially with inflation and economic uncertainty. There was also discussion on whether the City has an emergency plan in case of a recession or unexpected economic crisis. Staff will return with more detailed proposals in August, with the goal of making better-informed decisions. Regarding TIF district funding for the interchange project, staff recommended waiting to see if the State Legislature approves funding. Other TIF changes would not impact the City Manager’s proposed budget for 2026-27. Council asked if they should continue using these funds as they have in the past or consider reallocating or returning them. Staff said this would be helpful as a broader policy discussion to determine a consistent approach moving forward. Assistant City Manager Lenz recommended not forming a Human Services Task Force this year, as they typically would at this time. Council would review the potential reduction again this fall with the context of the proposed budget and if Council choose to continue funding, the current human services contracts would be extended through next year. Engineering Director Millner provided a summary of previous discussions on utility franchise fees and laid out two main options for generating additional revenue: updating the current flat fee structure or switching to a new percentage-based fee model. Currently, the city collects about $2.6 million annually through flat fees and is considering increasing this to $4 million to support street reconstruction and Minutes/Edina City Council Work Session/May 6, 2025 Page 2 other projects. The percentage-based model would charge customers based on their energy usage, encouraging conservation and aligning cost with consumption. Under this model, heavy energy users— mostly commercial or industrial—would pay more, while some residential users might see little to no change or even a small decrease. Council spoke about the fairness of tying fees to energy use and the potential environmental benefits and whether shifting costs from the levy to franchise fees would reduce the tax burden on residents, Council appreciated the model mostly aligning with increased fees on commercial users. Staff will begin the legal and procedural steps required for any changes. 3.2 WATER TREATMENT PLANT #5 AT YORKTOWN PARK Engineering Director Millner and Engineering Services Manager Bintner provided an update on the proposed Water Treatment Plant #5 at Yorktown Park, highlighting the need for a new facility to meet growing water demands. Past studies from 2017 and 2018 reviewed several locations, and recent modeling reaffirmed Yorktown Park as a viable site. Millner explained that the existing fire station building on the site cannot be reused due to building code and safety requirements. As a result, demolition of the current building would be necessary to make room for the facility. The estimated total project cost is $31.5 million, including design, contingencies, and related infrastructure upgrades. This estimate will be factored into the upcoming utility rate study, with construction currently planned for 2029 or 2030 and coordinated with the Yorktown Park master planning. This will help determine how the treatment plant could integrate with other park features, such as the existing skate park. Staff requested feedback on the general support for the site and discussed the possibility of removing the fire station building in 2025. Coordination with Richfield and other long-term planning efforts will be part of the process. Council supported the necessity of the facility but expressed hesitation about demolishing the existing building without evaluating other community uses. Ideas included incorporating public restrooms and other shared amenities into the project. 4.0 ADJOURNMENT Mayor Hovland adjourned the meeting at 6:38 p.m. Respectfully submitted, Kari Sinning, Deputy City Clerk Minutes approved by Edina City Council, May 20, 2025. James B. Hovland, Mayor Audio copy of the work session available. Kari Sinning (May 22, 2025 08:02 CDT)