HomeMy WebLinkAbout2025-08-19 Work Session Meeting MinutesPage 1
MINUTES
OF THE EDINA CITY COUNCIL
WORK SESSION
COMMUNITY ROOM, CITY HALL
TUESDAY, AUGUST 19, 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, Risser and Hovland.
Staff in attendance: Scott Neal, City Manager; Ari Lenz, Assistant City Manager; Pa Thao, Finance Director;
Nelly Chick-Brewer, Assistant Finance Director; Jennifer Bennerotte, Communications Director; Perry
Vetter, Parks & Recreation Director; Kelly Curtin, Human Resources Director; Todd Milburn, Police Chief;
Cary Teague, Community Development Director; Derik Otten, Facility Manager; Zoe Johnson, City
Management Fellow; Ryan Browning, I.T. Director; and Sharon Allison, City Clerk.
3.1 2026-2027 BUDGET AND PRELIMINARY LEVY DISCUSSION
City Manager Neal introduced the topic and explained that this was the draft staff-driven budget, noting that
Council’s direction to keep the tax levy below 10 percent—recognizing this translates into the tax burden
for residents—allowed staff to set parameters sooner in the planning process. Neal explained the strategies
used included controlling operating costs by asking directors to keep growth below three percent, reducing
operating costs by eliminating six full-time positions in Assessing and one in Fleet Services, increasing non-
property tax revenues to reduce dependence on property tax, organizing capital spending within existing
debt service levies, continuing to control vacancy spending, and adjusting debt service over two years to
lessen the impact in 2026.
Finance Director Thao reviewed the budget timeline, beginning last December and leading to the
preliminary levy due September 30. She explained the biennial budget process, highlighting the 2025
consolidated budget of $211 million, with the General Fund largely supported by property taxes with more
than half going to public safety. She showed how 2025 property taxes are divided among agencies, with the
City receiving 27% to fund core services, and noted steady increases in tax capacity and the City’s tax rate
over the past five years. Debt service levies for major capital projects were also discussed, with some
planned for 2025 and beyond. Thao compared Edina’s tax rate to peer cities, showing it is among the lowest,
and reviewed 2025 property assessments, where single-family homes saw the biggest increase, raising the
City’s total market value to $17 billion, a 2% overall increase.
Thao presented the proposed preliminary levy, which includes a 9.23 percent increase and described how
the proposed projects aligned with the City’s budget values of Strong Foundation, Reliable Service, Livable
City and BetterTogether, and said the next steps were to continue to refine the budget based on council
input, provide an update on September 2, and certify the preliminary tax levy on September 16.
Council spoke about funding for the Aquatic Center, the biennial budget, fire station financing, firefighter
staffing needs, the potential impact of the SAFER grant, concerns about long-term staffing and hiring
challenges. Council emphasized the importance of transparency in budget presentations, including showing
reductions made to reach the proposed levy and discussed labor costs, efficiency opportunities, and
comparisons with other cities, stressing the need to clearly communicate Edina’s priorities and fiscal
stewardship to residents. Future topics identified included commercial water rates on October 7 and use of
future debt service savings for upcoming projects.
Minutes/Edina City Council Work Session/August 19, 2025
Page 2
4.0 ADJOURNMENT
Mayor Hovland adjourned the meeting at 6:43 p.m.
Respectfully submitted,
Sharon Allison, City Clerk
Minutes approved by Edina City Council, September 2, 2025.
James B. Hovland, Mayor
Audio copy of the work session available.
Sharon Allison (Sep 3, 2025 10:01:33 CDT)