The URL can be used to link to this page

Home My WebLink About2025-08-19 Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, August 19, 2025 5:30 PM Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Meeting Topics 3.1. 2026 - 2027 Budget and Preliminary Levy Discussion 4. Adjournment Page 1 of 37 d ITEM REPORT Date: August 19, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.1 Prepared By: Scott Neal, City Manager Item Type: Other Department: Finance Item Title: 2026 - 2027 Budget and Preliminary Levy Discussion Action Requested: Discussion only Information/Background: The City Manager and staff will provide Council Members with preliminary budget projections for 2026 - 2027. This is a continuation of series of budget discussions with Council Members in advance of the preliminary levy approval on September 16, 2025 and, ultimately, approval of the final levy before the end of December 2025. Resources/Financial Impacts: Relationship to City Policies: Supporting Documentation: 1. Staff Report 2. Staff Presentation 3. 2026-2027 Budget Work Plan Draft 4. 2026-2027 CIP 5. 2026-2027 CEP Page 2 of 37 City of Edina • 4801 W. 50th St. • Edina, MN 55424 At the end of 2024, the City Council asked for a more elaborate budget review process. In February, the City Council and the Executive Leadership Team met to present an overview of the services the City offers and to discuss plans for the 2026-2027 budget. The Council directed me to work on proposed changes to previous projections to reduce the projected budget for 2026-2027. In March, we held a retreat and reviewed initial recommendations and Council Members discussed priorities for the next two years. In May, we met twice to discuss further details related to the budget. Since then, staff has worked to produce a draft budget. I believe that as an organization, we are more prepared and have a stronger understanding of the Council’s priorities based on the work we did this year in preparation of the budget. Enclosed is my 2026-2027 biennial budget recommendation based on the Council’s priorities. The 2026- 2027 Biennial Budget reflects a balanced approach that considers both revenues and expenditures, as well as capital prioritization and operational service choices. It also reflects the investments and priorities the Council has communicated. While we have reduced projected growth significantly in 2026 and 2027, the proposed 2026-2027 City budget maintains essential services while investing in key priorities like public safety, street maintenance, and facility improvements. My proposed budget recommendation includes adopting a preliminary levy of 9.23% for 2026. As a reminder, the preliminary levy must be set at the maximum levy amount and cannot be increased after it has been set. While we have managed to answer a lot of questions so far this year, whether we are awarded the SAFER grant for Paramedic/Firefighters is yet to be seen. I have included and would recommend adopting a preliminary levy that allows for either the 12 Paramedic/Firefighters with the grant or six Paramedic/Firefighters if we are not able to obtain it. Following is a listing of other items included in the proposed budget: • Debt service additions for Fire Station 2 (realizing a reduction of more than $2 million in the bond amount needed due to fiscal management and conservative budgeting). • Debt Service to add a treatment room at the Aquatic Center to ensure ongoing operations • Savings of approximately $500,000 in 2026 and $1 million in 2027 by transitioning Assessing services to the County. • Increases in franchise fee revenue to generate another $1 million to be used for street reconstruction. • Credit and debit card processing fees. • 2050 Comprehensive Plan updates for all areas. Date: August 19, 2025 To: Mayor & Council From: Scott H. Neal, City Manager Subject: 2026-2027 City Manager Budget Proposal Page 3 of 37 City of Edina • 4801 W. 50th St. • Edina, MN 55424 • Continues contracting public safety partnership programs with Hennepin County, such as Joint Community Police Partnership and our embedded social worker program, which were previously funded with Public Safety Aid. • Minimization of deferred maintenance by making strategic capital and equipment investments in a variety of areas and using surplus capital reserves responsibly toward one-time expenditures and investments. The budget allows for investment into strategic priorities, like beginning funding for the new Art Center, Fred Richards Park and other recreational facilities, and technology investments like process automation and AI exploration. Most importantly, it upholds an on-going commitment to a strong, safe and competitive workforce, which is vital for the success of the organization. Long-term areas of opportunity and challenge remain. Council and Staff will need to continue strategic prioritization to ensure continued ability to remain responsible stewards, especially with ever-changing external pressures and aging infrastructure. Page 4 of 37 EdinaMN.gov 2026 –2027 Levy and Budget August 19, 2025 1 8/14/2025 Page 5 of 37 Agenda •Looking Forward •Local Economy •Debt •Other Comparisons •Local Budget & Taxes •Questions/Discussion 2 8/14/2025 Page 6 of 37 Tentative Timeline Date Event Action Dec 17th Council Approved 2025 Levy and Budget February 4th & 6th Council Work Session Council Work Session (Services Overview by Dept.) March 15th Discussion & Goal Setting Council Retreat May 6th Council Work Session Council Work Session May 20th Council Work Session Council Work Session August 19th 26/27 Budget Presented Council Work Session September 2nd 26/27 Budget Discussion Council Work Session September 16th Preliminary Levy Adoption Council Meeting September 30th Finance Deadline Preliminary levy due to County Dec. 2 nd Council Work Session & Council Meeting Public hearing and adopt final 2026/27 Levy Dec. 16th Council Meeting Adopt final 2026/27 Levy Dec. 28 th Finance Deadline Final levy certification due to County January 2025 Finance Deadline Publish detail budget book to website 3 8/14/2025 Page 7 of 37 Biennial Budget Process 2024 (Even Year) First year of 2024-2025 Budget Review/approve of 2025-2030 CIP 2025 (Odd Year) Second year of 2024-2025 Budget Approve 2026-2027 budget, including CIP levy 4 8/14/2025 Page 8 of 37 2025 Consolidated Budget Edina Consolidated Budget (in millions) $211M Governmental Funds $127.9M General Fund $65.6M Debt Service Fund $25M Construction Fund $21.9M Special Revenue Funds, including HRA $15.4M Enterprise Funds $74.5M Utility Fund $41.9M Liquor Fund $16.2M Park Enterprises $16.4M Internal Service Funds $9M Risk Management $2.5M Equip. Operations $2.2M IT $2.9M Facilities $1.4M5 8/14/2025 Page 9 of 37 Public Safety 52% Public Works 19% General Government 13% Parks & Recreation 13% Community Development 4% Uses General Fund –2025 Budget Property Taxes 74% Charges for Services 10% Licenses & Permits 9% Intergovernmental Revenues 4% Franchise Fees 2%Other 1%Interest on Investments 1%Fines & Forfeitures 1% Sources 6 8/14/2025 Page 10 of 37 How is your 2025 property tax distributed? Edina School District 38% Hennepin County 29% Watershed, Metro Districts, & Other 6% Debt Services 2%HRA 0.09% Public Safety 12% General Government 6% Parks 3% Public Works 2% Construction Fund 2% City of Edina 27% 7 8/14/2025 Page 11 of 37 Tax Capacity, Certified Levy and City Tax Rate $157,910,360 $164,716,554 $169,928,228 $190,473,325 $205,645,781 $211,649,964 $39,659,543 $42,021,871 $45,367,336 $49,855,000 $54,418,565 $59,010,154 27.9%28.8%28.9%28.1%28.4%30.2% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% 55.0% 65.0% $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2020 2021 2022 2023 2024 2025 Tax Capacity Certified Tax Levy City Tax Rate 8 8/14/2025 Page 12 of 37 Debt Service Levy Projection $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 2023 2024 2025 2026 2027 2028 2029 2030Millions Gymnasium Fire Station 1 Public Works Facility Sports Dome Fire Station 2 Aquatic Center Highway 100 Interchange Citywide Roof PW Cold Storage PD & Cityhall Fire Station 3 Public Works 9 8/14/2025 Page 13 of 37 How Does Edina Compare? Tax Comparison 2025 Tax Rate City Taxes on $400,000 Homestead City Taxes on $712,300 Homestead Plymouth 25.8%$1,001 $1,967 Maple Grove 29.1%$1,113 $2,311 Edina 30.2%$1,178 $2,314 Eden Prairie 30.5%$1,188 $2,334 Lakeville 32.7%$1,274 $2,503 Eagan 36.1%$1,406 $2,763 Minnetonka 37.1%$1,445 $2,840 Apple Valley 41.8%$1,628 $3,199 Burnsville 45.8%$1,784 $3,505 St. Louis Park 48.8%$1,901 $3,735 Average 35.8%$1,392 $2,747 Difference Edina to Average -5.6%($214)($433) Difference Edina to Highest -18.6%($723)($1,421) Source: MN Department of Revenue Property Tax History Data 10 8/14/2025 Page 14 of 37 Tax Rate Comparison > 45,000 Population 48.8% 45.8% 41.8% 37.1%36.1% 32.7%30.5%30.2%29.1% 25.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% St. Louis Park Burnsville Apple Valley Minnetonka Eagan Lakeville Eden Prairie Edina Maple Grove Plymouth 2025 Tax Rate Average Average Tax Rate: 35.8% Credit: City of Plymouth 2025 Financial Overview 11 8/14/2025 Page 15 of 37 Tax Rate Comparison > 10,000 Population 66.7%63.0%62.0%61.5%58.1%57.1%56.4%54.6%52.6%48.8%44.7%40.6%38.6%37.1% 30.5%30.2%29.1%25.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2025 Tax Rate Average Average Tax Rate: 47.6% Credit: City of Plymouth 2025 Financial Overview 12 8/14/2025 Page 16 of 37 2025 Assessment Single Family Homes +2.3%Residential Condos +2.6% Commercial -1.3%Townhouses +3.2% Industrial -4.6%Double Bungalow -8.6% Apartment -6.9%Residential Zero Lot Line +3.6% City of Edina 2025 Assessment Total market value:$17,218,964,600 New Construction $222,739,300 New percent increase for all property types +0.7% Gross percent increase (EMV)2.0% Source: Edina 2025 Assessment Report 13 8/14/2025 Page 17 of 37 Average Market Value by Property Type $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Billions Residential Commercial Industrial Apartments 14 8/14/2025 Page 18 of 37 2026 – 2027 Preliminary Levy Proposal 2024 2025 2026 2027 Budget Budget Projected Projected GENERAL FUND LEVY $ 43,744,165 $ 47,543,215 $ 53,374,152 $ 57,540,859 General Fund Total 43,744,165 47,543,215 53,374,152 57,540,859 EXISTING DEBT SERVICE LEVIES Gymnasium Debt Service 2015 HRA 392,000 398,000 - - Fire Station Debt Service 2016A 403,000 406,000 403,000 404,000 Public Works Facility Debt Service 2017C 1,029,200 1,030,000 1,029,000 1,025,000 Public Works Facility Debt Service 2021B (2013A) 478,800 482,000 478,800 480,000 Sports Dome 2014 HRA 1,168,700 1,165,100 1,166,100 1,166,400 Community Health & Safety Center Debt Service 2024A -1,133,449 1,070,600 1,070,600 Community Health & Safety Center Debt Service 2024B -763,090 1,071,100 1,071,100 Community Health & Safety Center Debt Service 2025A --700,900 701,800 Aquatic Center 2025B --321,583 643,166 Highway 100 Interchange 2025B --206,700 206,700 Debt Service Levies Total 3,471,700 5,377,639 6,447,783 6,768,766 CONSTRUCTION FUND LEVIES Capital Improvement Plan Levy 2,000,000 1,000,000 1,300,000 2,010,000 Equipment Levy 2,470,000 2,668,000 1,613,450 2,209,278 Street Special Levy 1,481,000 1,762,000 1,053,000 1,355,400 Special Park Improvement Levy 1,000,000 400,000 400,000 400,000 Construction Levies Total 6,951,000 5,830,000 4,366,450 5,974,678 HRA Fund Levies HRA Operating Levy 251,700 259,300 267,100 275,100 HRA Levies Total 251,700 259,300 267,100 275,100 TOTAL PROPERTY TAX LEVIED $ 54,418,565 $ 59,010,154 $ 64,455,485 $ 70,559,403 Increase from Prior Year 9.15%8.44%9.23%9.47%15 8/14/2025 Page 19 of 37 7.55%5.88% 2.08% 0.50% 0.95%0.79% 0.52% 0.27% 1.71% 0.31% 1.72% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Base New Debt 6 Firefighters Budget Additions Budget Work Plans Strategic Prioritization Budget Changes 9.23%9.47% 2026 -3.33% 2027 16 8/14/2025 Page 20 of 37 Proposed Budget Highlights: •Debt Service addition for Fire Station 2 •Debt Service addition for Aquatic Center •Debt Service addition for Highway 100 Interchange •6 Paramedic Firefighters (with the possibility of 12 with SAFER Grant) •Savings from transitioning Assessing Services to the County •2050 Comprehensive Plan Updates •Continues contracting public safety partnership programs with Hennepin County, such as Joint Community Police Partnership and our embedded social worker program (previously funded with Public Safety Aid) •Strategic Capital and Equipment Investments 17 8/14/2025 Page 21 of 37 Budget Work Plan 2026-2027 Strong Foundation •Fire Station 3 Design & Planning •Park Improvements: •Fred Richards •Braemar Arena •Braemar Park •South Trunk Sanitary (Cahill Industrial Area) •Police Department/City Hall Renovation Design & Planning •Replace Pump Room at Edina Aquatic Center 18 8/14/2025 Page 22 of 37 Budget Work Plan 2026-2027 Reliable Service •Enhancing Support for Staff Experience Social Disruption Events •Mental- Health Service Advancements •Assessing Transition •Edinborough Park •Process Automation & AI Exploration •Staffing Study 19 8/14/2025 Page 23 of 37 Budget Work Plan 2026-2027 Livable City •Affordable Housing Advancement and Growth •Comprehensive Plan Update •Zoning Code Update •Safe & Equitable Mobility Action Plan 20 8/14/2025 Page 24 of 37 Budget Work Plan 2026-2027 Better Together •Quality of Life Survey •Community Engagement Online Platform Update •Long-Term Art Center Plan 21 8/14/2025 Page 25 of 37 Next Steps •Based on Council input, continue to refine 2026 – 2027 budget •Budget work session Sept. 2nd •Certify Preliminary Tax Levy on Sept. 16th 22 8/14/2025 Page 26 of 37 DRAFT 2026-27 Budget Work Plan 1 DRAFT: 2026-27 BUDGET WORK PLAN UPDATE The attached is the Proposed Budget Work Plan which includes the projects funded and included in the 2026 and 2027 Biennial Budget. The final budget work plan will be adopted in December along with the budget. Items on the plan below are on various levels of vetting and may be subject to change. These are our best estimates at this time. Staff time is not reflected in the funding notes section, there is an assumption that all of these projects require significant staff prioritization and time in order for them to be prioritized and completed. Strong Foundation City infrastructure, facilities, technology and equipment meets community needs now and in the future. Infrastructure serves as the foundation for providing core City services such as transportation, clean drinking water, sanitary sewer services and flood protection. City facilities house the people and equipment that provide public services, and the shared right-of-way, public places and parks are where people come together. Technology and equipment support our ability to provide reliable service day to day or in emergencies. Strong Foundation Objectives • Capital assets and infrastructure systems are managed to minimize risk and sustain service levels. • Infrastructure design reduces risk of flooded structures, improves water quality (drinking and surface), and increases filtered drinking water production. • Facilities, infrastructure assets and equipment are maintained and replaced at the most cost-effective time to prevent emergency repair and avoid service disruptions. • Integrated project scope and decision-making processes partner with customers, stakeholders and related City services to deliver best value projects that stand the test of time. • Technology systems are implemented effectively to easily maintain and locate data for the public and provide better data for informed decision-making by elected officials and staff. • Reliable technology systems are created and managed to protect against deliberate misuse and work when they are needed most, at times of emergency or natural hazard. Strategy Status Proposed Next Step Funding Notes Fire Station 3 Design & Planning Determine location, finance method and plan for Fire Station 3 in the northeast quadrant of the city, utilizing response models to provide efficient emergency response to all residents. Location to be determined by the end of 2025. Fire Study proposed timeline is construction by 2029. Design steps need to be taken to study the feasibility of the City Hall adjacent site. Site planning estimated at 1.5 million (would give better idea of soil conditions, traffic flow, etc. and better cost estimate and timeline of projects). Funding with FS2 Reimbursement funds for design. Construction Reserve. Will be reimbursed with future bond. Page 27 of 37 DRAFT 2026-27 Budget Work Plan 2 Park Improvements: Fred Richards and Braemar Design and construct Fred Richards Park improvements. Design will be completed. Set final park design and set guaranteed maximum price. Begin construction. Projects are paid for by Local Sales Tax improvement Braemar Ice Arena Design and construct Braemar Ice Arena improvements. Design will be completed. Set final facility design and set guaranteed maximum price. Begin construction. Projects are paid for by Local Sales Tax improvement Braemar Park Design and construct Braemar Park improvements. Construction of remaining components will be finalized. Finalize south trail segment and construct. Continue with ongoing operations and maintenance of the new and existing amenities. Projects are paid for by Local Sales Tax improvement South Trunk Sanitary (Cahill Industrial Area) Design and construct Cahill Industrial area sanitary sewer trunk capacity expansion project. A contract was awarded to the selected firm at the December 17, 2024, City Council meeting. The consultant is starting design of the project now. Phase 1 construction planned for 2026 (72nd Street from Cornelia Dr to France Ave, final phases estimated for 2028 to 2030 or as budget allow. This project is funded by the sanitary sewer utility fund. Police Department/City Hall Renovation Design and Planning Starting in 2019 a space needs study was produced and some security improvements have been made. The study was refreshed in 2023 based on updated service interaction levels. The building for the Police Department and City Hall was constructed in 2004 and is hitting an age where reinvestment is needed based on changed service operations, a need for a larger meeting room and staffing changes. Pushing project back to 2029 construction. Next step would be to engage with an architecture firm on design. Design estimate 1.5 million. Fund with construction fund reserves, will be reimbursed with future bond. Replace Pump Room at Edina Aquatic Center Design is underway. If funding is secured, construction will take place in fall 2025 into spring 2026 with bonding period going into the budget in 2026. Finalize design considerations and secure detailed cost level estimates. Construction to begin in late 2025 Estimating $8.4 million to be bonded, included in debt service projections. Page 28 of 37 DRAFT 2026-27 Budget Work Plan 3 Reliable Service City services enhance the safety, wellbeing and quality of life experienced in Edina. City services including police, fire, inspections, water/sewer and streets are critical to the safety of the community. Parks, recreational facilities and other City programs enhance the overall quality of life for those who live, work and visit Edina. The City recognizes that a skilled and engaged workforce is critical for the delivery of high-quality services. The City needs to recruit and retain a strong workforce with the necessary skills, tools, and resources to accomplish the work. Reliable Service Objectives • City facilities and property provide a safe and secure environment for employees and visitors. • Appropriate and equitable response times effectively prioritize health and safety. • Staffing, tools, equipment, resources and training are aligned to meet expectations for service delivery. • An engaging and respectful work culture values employee quality of life, physical and mental wellbeing and work/life balance. • Competitive employee compensation, benefits and practices attract and retain a skilled and high-performing workforce. Strategy Status Proposed Next Step Funding Notes Enhancing Support for Staff Experiencing Social Disruption Events Support staff who experience social disruption events and PTSD effects through adequate staffing levels, preventative measures and after-event follow up. Mental health check-up programs for police officers, 911 dispatchers and paramedic firefighters; de-escalation training (ROAR and RESTORE); and evaluating and implementing mental health opportunities for police officers and paramedic firefighters. Parks & Recreation staff and the Risk & Safety Manager are evaluating recommendations to consider from the safety and security assessments. In addition, they are reviewing a draft safety and security manual that encompasses standard operations for preventing, preparing and responding to hazards, threats, and emergencies. Continue this work. Parks and Recreation will be incorporating operational aspects into onboarding, training and procedures for operations. Physical improvements will be included in proposals for capital planning requests for during facility renovations. Expand vulnerability assessments to facilities outside of Parks & Recreation. Operational and physical infrastructure upgrades would be reviewed with future budget discussions and prioritization. Certain physical upgrades would be incorporated into current projects such as Braemar Arena, Art Center and the pump room upgrade phase of the Edina Aquatic Center. Vulnerability Assessment for other buildings – $5,000. $3,000 other program investments. Using Risk Fund to pay for programming. Mental-Health Service Advancements Increase resources, training and interdepartmental coordination for responding to mental health-related calls for service. Pilot will be completed. Review pilot results and determine next steps. Analysis would need to include full costs and a future funding plan. Previous funded through Public Safety one-time funding at $150,000/year (for two years). Funding for 2026 and 2027 through Public Safety Aid. Assessing Transition Council made the decision to transition services to the County. Staff are working to develop the transition plans. Complete the transition of services to the County in 2026. Estimated savings of $500,000 in 2026 and $1,000,000 in 2027. Page 29 of 37 DRAFT 2026-27 Budget Work Plan 4 Edinborough Park Edinborough Park has a detailed list of unfunded and unscheduled capital improvement projects identified. Prior to developing a funding strategy staff will complete an operational analysis of the facility. Similar to the evaluation of Centennial Lakes Park and Art Center operations, staff will complete a study of Edinborough Park in order to gauge the level and strategy for reinvestment. There is a concern in the context of other projects regarding staff capacity. Staff will need to evaluate this along with other parks related project improvements and determine if additional resources are needed (for this or other projects). Estimated $150,000 in 2027 (needs to be 2027 or additional will be needed for staffing). In order to maintain financial viability during this budget cycle, we have added a general fund transfer of $400,000 to Edinborough in 2026 and 2027. Process Automation and AI Exploration Invest in exploring how AI could improve systems and processes City-wide. Complete some small pilot projects to explore the cost benefits and opportunities. Estimated $50,000 budget and co-pilot subscription for pilot team. Funded through the IT Internal Service Fund. Staffing Study Council requested at retreat that we review current staffing studies and do another staffing study including reviewing process automation and AI impact. Estimated cost $100,000 funded by the General Fund Page 30 of 37 DRAFT 2026-27 Budget Work Plan 5 Livable City City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. Ensuring a vibrant city requires forward thinking and preparation. Affordable, walkable neighborhoods that foster mobility and interconnectedness improve the quality of life for current and future residents. Reducing the community’s greenhouse gas emissions and responding to climate change through adaptive management of natural assets such as trees, greenspace and water is critical to the health of future generations. Livable City Objectives • Neighborhoods, businesses and open spaces are connected with multi-modal transportation options. • Installation of sidewalks and shared-use paths continues to connect neighborhoods per long-term strategies (e.g., Twin Loops implementation). • There are a variety of housing options available for different incomes and life stages. • Edina’s Climate Action Plan is implemented to meet climate mitigation and adaptation metrics. • Residents and workers can easily access City resources to ensure clean, safe housing and workplaces. • Residents can safely and enjoyably access a park or open green space within a short walk from home. Strategy Status Proposed Next Step Funding Notes Affordable Housing Advancement and Growth Advance affordable housing goals, including increasing housing options and developing a long-term growth strategy. Staff is currently providing the City Council with an overview at HRA meetings to get direction on goals and any modifications Council Members want to make. To be determined Comprehensive Plan Update Prepare for a Comprehensive Plan update. Identify changes from previous plan, hire a consulting firm to coordinate updates and assemble a working group to weigh in on needed updates. Focus areas may include balancing mixed-use nodes, activation and commercial zoning. Preparation work will be completed. Keep on Budget Work Plan. Transition from “prepare for Comprehensive Plan” to “complete Comprehensive Plan update.” Completion would take place in 2028. There are several other processes that get updated along with Comprehensive plan. Estimated $250,000 in 2027 and $250,000 in 2028 from General Fund. $200k to update the Water Model – Distribution System – flows and pressure, Storage – current and future needs, and Production – current and future needs. $200k to update the Sanitary Sewer Model – Pipe and Lift Station Capacities for current and future needs. $200k to update the Water Resources Management Plan (Storm Water) – Model flooding, pipe and lift station capacities for current and future needs. $200k to update the Transportation Model (funded by PACS) $200k Park System Plan (General Fund) Page 31 of 37 DRAFT 2026-27 Budget Work Plan 6 Vision Edina will be reviewed and updated within the scope of the comprehensive plan update. Zoning Code Update Currently working on RFP. Update will take 18 months and go into 2026. Project will help streamline and clean up zoning code which has not had a comprehensive update in 30 years. RFQ came back and the project can be done within the 2025 $250,000 allocation. Safe & Equitable Mobility Action Plan (SEMAP) Developing a comprehensive plan to reduce fatal and serious injury crashes for all road users. The SEMAP will focus on addressing roadway safety challenges, such as distracted driving and speeding, and the need for safer infrastructure for people walking, biking, and using other forms of active transportation. The plan will identify projects and policies to proactively address these challenges based on best practices. Started in 2025. Plan complete Q2 2026. Implementation thru 2027 and beyond. Funded: PACS Fund Page 32 of 37 DRAFT 2026-27 Budget Work Plan 7 Better Together City government fosters an inclusive, informed and engaged community. The City wants to ensure that it works for all of the community. An inclusive and engaged community is one where everyone feels welcome, has equitable access to government, and has a voice in decisions that affect them. City government works best when residents are informed and have meaningful opportunities for engagement that include a variety of diverse perspectives. The City will continue to learn and adapt to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions. Better Together Objectives • City Council, City staff and members of the community treat each other with professionalism and respect. • Residents can easily find and access information that affects them. • Inclusive engagement methods provide a variety of ways for the public to participate in the decision-making process and ensure all voices are heard and, • The decision to be made and decision-making process is clearly defined. • Individuals understand how and when they can participate. • The City communicates what feedback is used and why. • Residents are satisfied with the process, even if they disagree with the outcome. • City government representatives, volunteers and staff reflect the diversity of the people it serves. • There is ongoing evaluation of City policies and practices to ensure they are equitable regardless of an individual’s race, color, national origin, creed, religion, age, sex, sexual orientation, gender expression, economic status or other protected classes. Strategy Status Proposed Next Step Funding Notes 2025 Quality of Life Survey Administer the 2025 Quality of Life Survey. 2025 will be completed Update for 2027 Quality of Life Survey. The survey has typically been paid for out of the General Fund as part of the Communications Department budget. The department's Professional Services budget is increased in odd-numbered years to cover the cost of the survey. The Council would take action on the contract for the 2027 survey in late 2026. Approximately $50,000 from General Fund. Community Engagement Platform Update City will issue RFP at the end of 2025/ January of 2026 to replace system no longer being supported. Update online community engagement platform. The platform used for BetterTogetherEdina.org needs to be replaced, as there have been ongoing issues with support and lack of new development. On-going funds would be in place of the existing project but first year installation would likely be higher. Estimated $16,000 from General Fund. Long-Term Art Center Plan Project is moving out of the develop plan stage and into the actual construction phase with a planned opening in 2027. Construction completion planned for Q3/Q4 2027 opening. Staff will develop a management plan for staffing and operational programming for the facility. Budget includes $300,000 transfer from General Fund in 2026 and $350,000 transfer in 2027. Page 33 of 37 DRAFT 2026-27 Budget Work Plan 8 Awaiting lease agreements with Hennepin County/Hennepin County Library for next steps of approval. Page 34 of 37 Project CIP Project Cost Project CIP Project Cost City Hall HVAC Equipment Replacement FAC25125 500,000$ Lewis Park Shelter Building Replacement 15-049 900,000$ Pay with Surplus Asset Preservation Funding FAC25200 600,000 Normandale Park Playground Equipment P&R21046 200,000 Special Park Levy Annual Deferred Retaining Wall PW22002 100,000 Yorktown Park Master Plan P&R25103 40,000 Pay with Construction Reserves Life Safety System FAC25101 50,000 Increase Fiber Capacity to SLP ITS25101 60,000 Fund from IT Internal Service Reserve Parks Acccessibility & Pathways P&R25106 50,000 CLP Maintenance Fiber ITS25100 30,000 Fund from IT Internal Service Reserve 1,300,000$ 1,230,000$ Project CIP Project Cost Project CIP Project Cost Public Works Access Gates FAC25115 300,000$ Heights Park Playground Equipment P&R21047 175,000$ Special Park Levy City Wide ADA Facility Improvements Level 2 FAC25128 100,000 Utley Park Shelter Replacement P&R25108 60,000 Special Park Levy Asset Preservation Funding FAC25200 650,000 Arneson Park Shelter Replacement P&R25110 75,000 Special Park Levy Park Pathways and Parking Project Improvements P&R25106 150,000 Parks Accessibility Improvements P&R25106 150,000 Annual Deferred Retaining Wall PW22002 100,000 Life Safety System FAC25101 50,000 Public Works Space Reconfiguration FAC25114 75,000 Public Works BAS & Lighting Upgrades FAC25117 125,000 City Hall Facility Improvements 100,000 Pamela Park Facility Maintenance ENG21051 210,000 2,010,000$ 310,000$ DEFER TO FUTURE YEAR Centennial Lakes Entrance Fountain P&R25145 150,000 Arneson Acres Park Facility Improvement FAC23109 700,000 2026 Budget CIP LEVY FUND ALTERNATIVELY 2027 Budget CIP LEVY FUND ALTERNATIVELY Page 35 of 37 2026 Capital Equipment Project Listing (CEP) Description Date Purchased Useful Life Adjusted Useful Life Replacement Cost Replacement Year Department 2016 Ford F350 2015 10 11 45,000.00$ 2026 FIR Ultrasound Devices 2019 7 7 7,000.00$ 2026 FIR Debt Payment 395,000.00$ 2026 FIR Used 2010 TR MT6 Trackless Tractor 2018 7 8 250,000.00$ 2026 PWK Speed Measurement Radar Equipment (Stalker Radar)2018 6 8 48,000.00$ 2026 POL SWAT Team Rifles 2016 10 10 45,000.00$ 2026 POL 2019 Toyota RAV4 2019 3 7 55,000.00$ 2026 POL 2019 Toyota Highlander LE Hybrid - Model 6964 2019 3 7 60,000.00$ 2026 POL 2021 Ford F-150 Hybrid 2021 5 5 50,000.00$ 2026 POL 2021 Ford F-150 Hybrid 2021 5 5 50,000.00$ 2026 POL FURNITURE - City Hall 2004 20 22 100,000.00$ 2026 ADM 2006 JLG PSESLIFT 2010 6 16 12,500.00$ 2026 ENG 2013 Chevrolet Silverado 2500HD 2013 10 13 60,000.00$ 2026 P&R 2015 John Deere 1570 Mower 2015 7 11 30,200.00$ 2026 P&R 2011 Ford Ranger 2012 10 14 30,000.00$ 2026 P&R 2013 F-450 2013 10 13 83,000.00$ 2026 P&R 2015 Ford F250 2014 7 12 61,500.00$ 2026 P&R 2014 John Deere X540 Tractor 2014 10 12 9,000.00$ 2026 P&R 2015 Toro 2Master 2015 10 11 14,000.00$ 2026 P&R 2009 Silverado 1500 2009 10 17 51,750.00$ 2026 P&R 2006 Jacovsen Truck Cart 2006 10 20 37,750.00$ 2026 P&R Fire Control Systems at City Hall and PW 2015 10 11 45,000.00$ 2026 ITS Facility Asset Maint Software NEW 20 20 33,750.00$ 2026 ENG CLP Vehicle Replacement 2005 10 21 40,000.00$ 2026 CLP 1,613,450.00$ Page 36 of 37 2027 Capital Equipment Project Listing (CEP) Description Date Purchased Useful Life Adjusted Useful Life Replacement Cost Replacement Year Department Equip Cert Payment (Proposed)65,100.00$ 2027 FIR Equip Cert Payment (Proposed)70,350.00$ 2027 FIR Debt Payment 393,750.00$ 2027 FIR Warning Siren Replacement Combined Various Various 30,000.00$ 2027 FIR Weiler TT500 Tack Trailer 2017 10 10 23,000.00$ 2027 PWK Dispatch Radio Consoles 2016 10 11 237,500.00$ 2027 POL 2020 Ford Explorer 2020 3 7 60,000.00$ 2027 POL 2022 Ford Interceptor Utility 2022 4 5 60,000.00$ 2027 POL 2022 Ford Interceptor Utility 2022 4 5 60,000.00$ 2027 POL 2019 Ford Interceptor Utility - Black/Ebony 2019 3 8 50,000.00$ 2027 POL 2022 Ford Lightning EV 2022 4 5 70,000.00$ 2027 POL 2020 Ford Explorer (Unmarked)2020 3 7 60,000.00$ 2027 POL 2020 Toyota Rav4 Hybrid XLE (Unmarked)2020 3 7 50,000.00$ 2027 POL 2023 Ford Lightning 2023 3 5 75,000.00$ 2027 POL 2023 Police Interceptor Utility Vehicle 2023 3 4 60,000.00$ 2027 POL 2023 Police Interceptor Utility Vehicle 2023 3 4 60,000.00$ 2027 POL 2023 Police Interceptor Utility Vehicle 2023 3 4 60,000.00$ 2027 POL 2023 Police Interceptor Utility Vehicle 2023 3 4 60,000.00$ 2027 POL 2013 Nissan Leaf 2013 10 14 31,578.00$ 2027 ENG Department Furniture 2004 10 10 91,000.00$ 2027 ENG 2017 Exmark Lazer Mower 2016 7 11 20,000.00$ 2027 P&R Squad Car Technology Upgrades 2022 5 5 120,000.00$ 2027 ITS FURNITURE - CITY HALL 2004 20 23 110,000$ 2027 ADM Facility Asset Maint Software New 20 20 42,000.00$ 2027 ENG General Park Asset Equip Rep Various Various 50,000.00$ 2027 P&R Braemar Arena Zamboni New 15 15 200,000.00$ 2027 Arena 2,209,278.00$ Page 37 of 37