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Home My WebLink About2025-11-12 Special Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Wednesday, November 12, 2025 5:00 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. Utility Rate Study Update 3.2. Task Force Report and Recommendation 3.3. MOTION TO CLOSE SESSION: As permitted by M.S 13D.05 Subd. 3 to discuss the sale of real property located at 5146 Eden Ave 3.4. CLOSED SESSION: Discuss the Sale of Real Property Located at 5146 Eden Ave 3.5. Motion to Move to Open Session 4. Adjournment Page 1 of 56 d ITEM REPORT Date: November 12, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.1 Prepared By: Pa Thao, Finance Director Item Type: Other Department: Finance Item Title: Utility Rate Study Update Action Requested: None; discussion only. Information/Background: Continuation discussion of the Utility Rate Study update from October 7th, where Ehlers will provide an update to the 2025 Utility Rate Study that is designed to do the following for the 2026 - 2027 utility rates: • Implement inflationary increases to utility rates • Provide changes to water and sewer rate structures Formal approval of the 2026 rates will be presented to Council December 2025. Resources/Financial Impacts: Budget - Utility Funds Relationship to City Policies: Three year best practice study update Budget Pillar: Strong Foundation Reliable Service Livable City Values Impact: Engagement The Utility Rate Study can help residents understand how utility services are funded and maintained. This transparent approach builds trust, strengthens relationships, and helps every resident feel connected to the shared responsibility of sustaining essential City services. Page 2 of 56 Sustainability Clean water is a valued community resource. Tiered water utility rates are currently structured to promote water conservation and should continue to incentivize conservation strategies, with the largest consumers paying a higher rate for their consumption. Climate change is increasing Edina’s flood risk, and the city will need to continue to invest in innovative technologies, like adaptive level controls, to reduce localized flooding risks. Increasing stormwater utility revenue will allow the City to continue to make these critical climate-adaptive investments. Stewardship The Utility Rate Study will ensure that revenues continue to cover the cost of repairing and adding long-lasting water infrastructure to provide water to residents. The tiered rates also encourage people to use water responsibly, and if they choose to continue high usage, the study’s increased tiered rates will provide additional revenue for water infrastructure improvements all over the City. Equity In general, keeping on pace with this study update every three years is important to the performance of utility rates and monitoring possible changes of disproportionate impact on different groups of utility customers. Revenues are considered capital intensive, so it is important to understand how any changes to capital planning directly impact specific customers/neighborhoods and their level of service, quality of life and/or flood risk. Supporting Documentation: 1. Staff Presentation 2. Comparison Water Rates for 2025 3. 2015 - 2025 City of Edina Historical Rates Page 3 of 56 EdinaMN.gov Utility Rate Study Update Wednesday, November 12, 2025 *presentation has been updated after 10/7 City Council Work Session based on the feedback of Council Page 4 of 56 Overview Continue Discussion - Capital Planning and Utility Rate Study Update Recap Study’s Recommendations for 2026 Rate Implementation Recap Council Questions from October Discussion Additional Questions and Feedback Conclude with Next Steps for 2026 Rate Implementation Page 5 of 56 Recap: Purpose of a Utility Rate Study Maintain Financial Health of Utility Funds •Ensure utilities are self-sufficient •Assure fixed costs are covered by base rates •Maintain healthy reserves Usage, Conservation & Fee Equity •Review usage classifications and tiers •Inform decisions on charges and promoting conservation Inform Capital Planning •Determine how future Capital Improvement (CIP) costs will be funded Estimate Bill Impacts •Review user impacts and overall affordability Page 6 of 56 Recap: Prior Rate Study Analysis •2022 Study •Based on forecast of (then) Future Capital Funding Needs 2022 to 2031 CIP: Water - $62 million; Sewer - $35 million; Storm - $63 million Informed plan of annual rate increases: Water -5.0%; Sewer - 6.0%; Storm - 8.0% •Addressed various issues regarding charges and rate structure Residential Sewer minimum reduced and applied to lesser of winter- or current-quarterly use Addressed low-volume user equity complaints Enhance water conservation while supporting each user class pays for share of use Tightened Tier 1 and Tier 2 residential bands to reflect actual winter (i.e. “essential”) use Stretched Tier 1 and added third Tier to commercial rate structure Tightened Tier 1 irrigation band Increased Water and Sewer Connection Fees to provide more funding for growth infrastructure Page 7 of 56 Recap: 2025 Rate Study Financial Goals •Evaluate each utility’s rate structure and financial capacity •Build a multi-year financial forecast model (10 years - 2026 to 2035) •Determine annual cashflow needs to pay for utility costs Operations – staff, supplies, current maintenance and repair Capital projects Debt payments associated with capital projects •Year-end target is to have a minimum balance that covers: 4 months of operating expenses, excluding depreciation 100% of next year’s bond/debt payments Flexible reserves to accommodate unforeseen repairs and fund capital needs •Analyze sufficiency of revenues from base charges and usage tiers Page 8 of 56 Recommendation: Water Fund •Test year (2023) •Tier breaks align with winter “essential” use •Volumetric Charges revenue on pace with usage •Recommend no immediate changes to tier structure •CIP identifies $114 million future funding need •Water Fund – Recommend 5.25% Overall Increase Page 9 of 56 Recommendation: Sanitary Sewer Fund •CIP identifies $91 million future funding need •Updated MCES Funding Challenges •Metropolitan Council Environmental Services charges – 66% of fund’s operating budget Cashflow forecast assumes 7% annual MCES increases •Sanitary Sewer Fund - Recommend 9.25% annual increases •No recommended changes to rate structure 2025 2026 Percentage Increase 6.00%9.25% Minimum (includes 8,000 gallons) Per Quarter 61.66 67.36 Usage Rate Per 1,000 gallons 7.71 8.42 Proposed Sanitary Sewer Rates Page 10 of 56 Recommendation: Storm Water Fund •CIP identifies $98 million future funding need •Includes $46 million Flood Mitigation projects 2026 to 2033 •Storm Sewer Fund - Recommend phased increases •15.0% for 2026; step down % increases in future years as projects approved •No recommended changes to rate structure 2025 2026 Percentage Increase 8.00%15.00% Stormwater Drainage Charge Per Quarter 55.00 63.25 REF x Lot (fpr single or double dwelling unit) REF x Acre (for all other land uses) Proposed Storm Sewer Rates Page 11 of 56 Recommendation: Connection Fees •Water and Sewer fees paid by development •# of Residential Equivalent Connections (REC) •Paid at time of permit •Recommend fee increases to pay for capacity expansion projects •Water Connection fee Continue 3.0% increases per year Funds $12 million of CIP’s capacity expansion projects (10.5% of 10-year Water CIP) •Sewer Connection fee Adjust to 9.0% increases per year Funds $16.7 million of CIP’s capacity expansions projects (18.4% of 10-year Sanitary Sewer CIP) 2025 2026 Water Connection Percentage Increase 3.00%3.00% Per REC Unit $3,235 $3,332 Sanitary Sewer Connection Percentage Increase 5.00%9.00% Per REC Unit $2,968 $3,235 Proposed Connection Fees Page 12 of 56 Recap: October Council Questions •Water Use Information •Quarterly Usage Patterns (2023 Test Year) Residential: Winter median use was 11,000 gallons; Spring was 12,800 gallons Summer median was 32,400 gallons, Fall was 23,600 gallons Commercial: Consistent usage pattern throughout year Many commercial users have separate irrigation accounts •Discussion of adding a 4th Residential Tier If applied, typically set at 85-90th percentile use Page 13 of 56 Recap: October Council Questions •Water Use and Rate Information •Edina’s Historical Rate Structure •Community Comparisons – Most charge combination of fixed fee plus usage rate(s) Single Usage Rate – applied to all users or separate rate for each user class Little to no conservation pricing incentive; high-volume costs borne by all Most often appears for Commercial, Multifamily * Alternatives: separate Irrigation charges when able, or seasonal Commercial usage rates Tiered Usage Rates – either applied to all users or as separate tier bands per user class Creates pricing incentives for lower volumes; most often appears for Residential May create disproportional revenues from Commercial, Multifamily if universally applied Page 14 of 56 Discussion •Utility Fund Capital and Operating Needs •Revenue increases are necessary to provide funding for forecasted capital needs Recommendation is incremental adjustments 5.25% Water, 9.0% Sanitary Sewer, 15.0% Stormwater for 2026 •No recommended changes to rate structure at this time Future: evaluate usage patterns over many cycles to determine conservation tier impacts •Alternative: Should pace of capital investment slow down in order to accommodate lower increases? Sanitary Sewer: Push timing of Cahill Trunk Sewer Line? Reduce increases to 7-8% as there is still a need to meet pace of MCES charges Stormwater: Reduce Flood Risk Reduction projects to limit increases? •Other Questions / discussion points? Page 15 of 56 Next Steps – 2026 Implementation •Rates/Charges set by Ordinance •Last adopted December 17, 2024, effective as of January 1, 2025 •Schedule necessary readings and adoption in December •For effective date of January 1, 2026 •Additionally, staff will work concurrently to prepare an update for the billing system Page 16 of 56 Additional Background Slides •Various usage charts, sample bill impacts and community comparisons Page 17 of 56 Historical Water Rate Structure Sample Single-Family Residential Water Bill City of Edina, MN Assumes 3/4" Meter for Low-Volume User & Medium-Volume; 1" Meter for High-Volume User Quarterly Water Water Water %Quarterly Water Water Water %Quarterly Water Water Water % Yearng C Base/Min Fee Consumption Total Change Base/Min Fee Consumption Total Change Base/Min Fee Consumption Total Change 2015 Qua 17.69$ 19.37$ 37.06$ 17.69$ 46.40$ 64.09$ 17.69$ 118.71$ 136.40$ 2016 Qua 18.53$ 20.31$ 38.84$ 4.8%18.53$ 48.64$ 67.17$ 4.8%18.53$ 124.33$ 142.86$ 4.7% 2017 Qua 19.41$ 21.30$ 40.71$ 4.8%19.41$ 51.12$ 70.53$ 5.0%19.41$ 131.95$ 151.36$ 5.9% 2018 Qua 20.33$ 22.30$ 42.63$ 4.7%20.33$ 53.52$ 73.85$ 4.7%20.33$ 138.09$ 158.42$ 4.7% 2019 Qua 21.35$ 23.40$ 44.75$ 5.0%21.35$ 56.16$ 77.51$ 5.0%21.35$ 145.00$ 166.35$ 5.0% 2020 Qua 22.42$ 24.60$ 47.02$ 5.1%22.42$ 59.04$ 81.46$ 5.1%22.42$ 152.43$ 174.85$ 5.1% 2021 Qua 23.54$ 25.80$ 49.34$ 4.9%23.54$ 61.92$ 85.46$ 4.9%23.54$ 159.90$ 183.44$ 4.9% 2022 Qua 24.72$ 27.10$ 51.82$ 5.0%24.72$ 65.04$ 89.76$ 5.0%24.72$ 167.89$ 192.61$ 5.0% 2023 Qua 25.96$ 24.20$ 50.16$ -3.2%25.96$ 73.20$ 99.16$ 10.5%25.96$ 240.73$ 266.69$ 38.5% 2024 Qua 27.26$ 25.40$ 52.66$ 5.0%27.26$ 76.80$ 104.06$ 4.9%27.26$ 252.60$ 279.86$ 4.9% 2025 Qua 28.62$ 26.70$ 55.32$ 5.1%28.62$ 80.76$ 109.38$ 5.1%28.62$ 265.38$ 294.00$ 5.1% Low-Volume 10,000 gallon user Medium Volume 24,000 gallon user High-Volume 50,000 gallon user Page 18 of 56 Water Fund - Usage Analysis (2023) Page 19 of 56 Water Fund - Usage Analysis (2023) Page 20 of 56 Water Fund - Usage Analysis (2023) Page 21 of 56 Water Fund - Usage Analysis (2023) Page 22 of 56 Water Fund - Usage Analysis (2023) Page 23 of 56 Water Fund - Usage Analysis (2023) Page 24 of 56 Water Fund - Usage Analysis (2023) Page 25 of 56 Water Fund - Usage Analysis (2023) Page 26 of 56 Community Comparisons - Water Page 27 of 56 Community Comparisons - Sewer Page 28 of 56 Community Comparisons - Storm Page 29 of 56 Community Comparisons - all Page 30 of 56 Community Comparisons – Alternative Water Use Example Page 31 of 56 Community Comparisons - Alternative Water Use Example #2 Page 32 of 56 Impacts: Low-Volume Residential User •10,000 gallons water, 8,000 gallons sewer (winter min.) and 3/4” meter Quarterly Residential Bill Actual Low Usage Example 2025 2026 2027 2028 2029 2030 Water 55.32$ 58.12$ 61.17$ 64.39$ 67.77$ 71.32$ Sewer 61.66$ 67.39$ 73.62$ 80.43$ 87.87$ 96.00$ Storm $55.00 $63.25 $72.58 $83.10 $90.17 $97.83 Total 171.98$ 188.76$ 207.37$ 227.92$ 245.80$ 265.15$ Percent Increase 6.2%9.8%9.9%9.9%7.8%7.9% Amount Increase- per quarter $10.06 $16.78 $18.61 $20.55 $17.88 $19.35 Preliminary Recommendation Page 33 of 56 Impacts: Mid-Volume Residential User •24,000 gallons water, 12,000 gallons sewer (winter min.) and 1” meter Quarterly Residential Bill Actual Mid Usage Example 2025 2026 2027 2028 2029 2030 Water 119.80$ 125.69$ 132.29$ 139.23$ 146.54$ 154.24$ Sewer 92.52$ 101.08$ 110.43$ 120.64$ 131.80$ 143.99$ Storm $55.00 $63.25 $72.58 $83.10 $90.17 $97.83 Total 267.32$ 290.02$ 315.30$ 342.98$ 368.51$ 396.06$ Percent Increase 6.0%8.5%8.7%8.8%7.4%7.5% Amount Increase- per quarter $15.02 $22.70 $25.28 $27.68 $25.53 $27.55 Preliminary Recommendation Page 34 of 56 Impacts: Low-Volume Commercial User •24,000 gallons water and sewer; 1” meter Quarterly Commercial Bill Actual Small Business 2025 2026 2027 2028 2029 2030 Water 92.44$ 98.09$ 103.24$ 108.66$ 114.36$ 120.37$ Sewer 154.20$ 168.46$ 184.05$ 201.07$ 219.67$ 239.99$ Storm 96.93$ 111.48$ 127.92$ 146.47$ 158.92$ 172.42$ Total 343.57$ 378.03$ 415.20$ 456.20$ 492.95$ 532.78$ Percent Increase 6.4%10.0%9.8%9.9%8.1%8.1% Amount Increase- per quarter $20.52 $34.45 $37.18 $40.99 $36.75 $39.83 Preliminary Recommendation Page 35 of 56 Impacts: High-Volume Commercial User •502,000 gallons water and sewer; 1” meter Quarterly Commercial Bill Actual Large Business 2025 2026 2027 2028 2029 2030 Water 1,928.36$ 2,023.01$ 2,129.22$ 2,241.01$ 2,358.66$ 2,482.49$ Sewer 3,870.42$ 4,228.43$ 4,619.56$ 5,046.87$ 5,513.71$ 6,023.73$ Storm 1,043.96$ 1,200.55$ 1,377.63$ 1,577.39$ 1,711.47$ 1,856.94$ Total 6,842.74$ 7,452.00$ 8,126.42$ 8,865.27$ 9,583.84$ 10,363.16$ Percent Increase 6.1%8.9%9.1%9.1%8.1%8.1% Amount Increase- per quarter $390.97 $609.26 $674.42 $738.85 $718.57 $779.32 Preliminary Recommendation Page 36 of 56 City of Edina Utility Rate Study Comparison Water Rate Structures Up to 12,000 gallons 2.67$ Up to 12,000 gallons 5.17$ Up to 10,000 gallons 2.44$ Up to 12,500 gallons 2.08$ 12,001 to 24,000 gallons 4.06$ Over 12,000 gallons 9.11$ 10,001 to 15,000 gallons 2.95$ 12,501 to 35,000 gallons 2.62$ Over 24,000 gallons 6.70$ Over 15,000 gallons 3.54$ Over 35,000 gallons 4.51$ Up to 4,500 gallons per unit 5.17$ All Usage 3.99$ Over 4,500 gallons per unit 9.11$ Up to 50,000 gallons 2.67$ Up to 75,000 gallons 2.69$ 50,001 to 200,000 gallons 3.33$ 75,001 to 225,000 gallons 2.96$ Over 200,000 gallons 4.16$ Over 225,000 gallons 3.28$ All Commercial Irrigation 3.95$ Irrigation Up to 12,000 gallons 4.06$ Up to 35,000 gallons 2.62$ Over 12,000 gallons 6.70$ Over 35,000 gallons 4.51$ Up to Winter Quarter Use 2.46$ Up to 20,000 gallons 2.70$ Up to 18,000 gallons 3.69$ Up to 15,000 gallons 5.18$ Up to 3,000 gallons 4.27$ Over Winter Quarter Use 3.30$ 20,001 to 40,000 gallons 3.81$ 18,001 to 40,000 gallons 4.21$ 15,001 to 25,000 gallons 6.22$ 3,001 to 5,000 gallons 4.92$ 40,001 to 60,000 gallons 5.24$ 40,001 to 70,000 gallons 5.25$ Over 25,000 gallons 7.48$ Over 5,000 gallons 5.64$ Over 60,000 gallons 7.00$ Over 70,000 gallons 7.30$ All Usage 2.82$ Same As Residential Same As Residential Same As Residential All Winter Usage 3.69$ Up to 10,000 gallons 4.08$ All Summer Usage 4.21$ 10,001 to 20,000 gallons 4.68$ Over 20,000 gallons 5.39$ Up to 13,000 gallons 3.81$ Up to 75,000 gallons 4.21$ 13,001 to 20,000 gallons 5.24$ 75,001 to 175,000 gallons 5.25$ Over 20,000 gallons 7.00$ Over 175,000 gallons 7.30$ Same As Residential All Usage 2.82$ Irrigation All Usage 5.18$ All Usage 7.48$ Same As Residential All Usage 2.49$ All Usage 5.10$ All Usage 5.17$ All Usage 9.11$ Minnetonka 3.82$ All Usage 2.95$ 4.83$ All Usage Bloomington All Usage All Usage All Usage All Usage 3.82$ 3.82$ 3.82$ Richfield Hopkins (Monthly) Residential Multifamily Comm/Ind WATER Eagan Eden Prairie 3.30$ All Usage Same As Residential Plymouth Residential Multifamily Comm/Ind WATER USAGE Edina (2025)Minneapolis St. Louis Park 11/6/2025 Historical Rates 2015-2025.xlsx Page 37 of 56 City of EdinaUtility Rate StudyHistorical Rates 2015 - 2025Tier 1 Up to 3,500 Cubic Feet 1.45$ Up to 3,500 Cubic Feet 1.52$ Up to 26,000 gallons 2.03$ Up to 26,000 gallons 2.13$ Up to 26,000 gallons 2.23$ Up to 26,000 gallons 2.34$ Tier 2 3,600 to 6,500 Cubic Feet 1.93$ 3,600 to 6,500 Cubic Feet 2.02$ 26,001 to 49,000 gallons 2.70$ 26,001 to 49,000 gallons 2.83$ 26,001 to 49,000 gallons 2.96$ 26,001 to 49,000 gallons 3.11$ Tier 3 Over 6,500 Cubic Feet 3.02$ Over 6,500 Cubic Feet 3.16$ Over 49,000 gallons 4.22$ Over 49,000 gallons 4.42$ Over 49,000 gallons 4.63$ Over 49,000 gallons 4.86$ Morningside Per 100 Cubic Feet 2.54$ Per 100 Cubic Feet 2.54$ All Usage - Per 1,000 gallons 3.39$ All Usage - Per 1,000 gallons 3.86$ All Usage - Per 1,000 gallons 3.99$ All Usage - Per 1,000 gallons 4.11$ Tier 1 Up to 3,500 Cubic Feet 1.45$ Up to 3,500 Cubic Feet 1.52$ Up to 26,000 gallons 2.03$ Up to 26,000 gallons 2.13$ Up to 26,000 gallons 2.23$ Up to 26,000 gallons 2.34$ Tier 2 3,600 to 6,500 Cubic Feet 1.93$ 3,600 to 6,500 Cubic Feet 2.02$ 26,001 to 49,000 gallons 2.70$ 26,001 to 49,000 gallons 2.83$ 26,001 to 49,000 gallons 2.96$ 26,001 to 49,000 gallons 3.11$ Tier 3 Over 6,500 Cubic Feet 3.02$ Over 6,500 Cubic Feet 3.16$ Over 49,000 gallons 4.22$ Over 49,000 gallons 4.42$ Over 49,000 gallons 4.63$ Over 49,000 gallons 4.86$ Tier 1 Up to 3,500 Cubic Feet 1.45$ Up to 3,500 Cubic Feet 1.45$ Up to 26,000 gallons 2.03$ Up to 26,000 gallons 2.13$ Up to 26,000 gallons 2.23$ Up to 26,000 gallons 2.34$ Tier 2 Over 3,500 Cubic Feet 1.93$ Over 3,500 Cubic Feet 1.93$ Over 26,000 gallons 2.70$ Over 26,000 gallons 2.83$ Over 26,000 gallons 2.96$ Over 26,000 gallons 3.11$ N/A N/A N/A N/AIrrigation Tier 1 Up to 3,500 Cubic Feet 1.93$ Up to 3,500 Cubic Feet 1.93$ Up to 26,000 gallons 2.70$ Up to 26,000 gallons 2.83$ Up to 26,000 gallons 2.96$ Up to 26,000 gallons 3.11$ Tier 2 Over 3,500 Cubic Feet 3.02$ Over 3,500 Cubic Feet 3.02$ Over 26,000 gallons 4.22$ Over 26,000 gallons 4.42$ Over 26,000 gallons 4.63$ Over 26,000 gallons 4.86$ 3/4" 17.69$ 3/4" 18.53$ 3/4" 18.53$ 3/4" 19.41$ 3/4" 20.33$ 3/4" 21.35$ 1" 24.12$ 1" 25.27$ 1" 25.27$ 1" 26.47$ 1" 27.73$ 1" 29.12$ 1 1/4" 27.52$ 1 1/4" 28.83$ 1 1/4" 28.83$ 1 1/4" 30.20$ 1 1/4" 31.63$ 1 1/4" 33.21$ 1 1/2" 30.95$ 1 1/2" 32.42$ 1 1/2" 32.42$ 1 1/2" 33.96$ 1 1/2" 35.57$ 1 1/2" 37.35$ 2" 49.84$ 2" 52.21$ 2" 52.21$ 2" 54.69$ 2" 57.29$ 2" 60.15$ 3" 189.26$ 3" 198.25$ 3" 198.25$ 3" 207.67$ 3" 217.53$ 3" 228.41$ 4" 240.90$ 4" 252.34$ 4" 252.34$ 4" 264.33$ 4" 276.89$ 4" 290.73$ 6" 305.29$ 6" 319.79$ 6" 319.79$ 6" 334.98$ 6" 350.89$ 6" 368.43$ 8" 387.70$ 8" 406.12$ 8" 406.12$ 8" 425.41$ 8" 445.62$ 8" 467.90$ Tier 1 Up to 26,000 gallons 2.46$ Up to 26,000 gallons 2.58$ Up to 26,000 gallons 2.71$ Up to 12,000 gallons 2.42$ Up to 12,000 gallons 2.54$ Up to 12,000 gallons 2.67$ Tier 2 26,001 to 49,000 gallons 3.27$ 26,001 to 49,000 gallons 3.43$ 26,001 to 49,000 gallons 3.60$ 12,001 to 24,000 gallons 3.68$ 12,001 to 24,000 gallons 3.86$ 12,001 to 24,000 gallons 4.06$ Tier 3 Over 49,000 gallons 5.10$ Over 49,000 gallons 5.36$ Over 49,000 gallons 5.63$ Over 24,000 gallons 6.08$ Over 24,000 gallons 6.38$ Over 24,000 gallons 6.70$ Morningside All Usage - Per 1,000 gallons 4.22$ All Usage - Per 1,000 gallons 4.26$ All Usage - Per 1,000 gallons 4.40$ All Usage - Per 1,000 gallons 4.58$ All Usage - Per 1,000 gallons 4.82$ All Usage - Per 1,000 gallons 5.06$ Tier 1 Up to 26,000 gallons 2.46$ Up to 26,000 gallons 2.58$ Up to 26,000 gallons 2.71$ Tier 2 26,001 to 49,000 gallons 3.27$ 26,001 to 49,000 gallons 3.43$ 26,001 to 49,000 gallons 3.60$ All Usage 3.62$ All Usage 3.80$ All Usage 3.99$ Tier 3 Over 49,000 gallons 5.10$ Over 49,000 gallons 5.36$ Over 49,000 gallons 5.63$ Tier 1 Up to 26,000 gallons 2.46$ Up to 26,000 gallons 2.58$ Up to 26,000 gallons 2.71$ Up to 50,000 gallons 2.42$ Up to 50,000 gallons 2.54$ Up to 50,000 gallons 2.67$ Tier 2 Over 26,000 gallons 3.27$ Over 26,000 gallons 3.43$ Over 26,000 gallons 3.60$ 50,001 to 200,000 gallons 3.02$ 50,001 to 200,000 gallons 3.17$ 50,001 to 200,000 gallons 3.33$ Tier 3 N/A N/A N/A Over 200,000 gallons 3.77$ Over 200,000 gallons 3.96$ Over 200,000 gallons 4.16$ Irrigation Tier 1 Up to 26,000 gallons 3.27$ Up to 26,000 gallons 3.43$ Up to 26,000 gallons 3.60$ Up to 12,000 gallons 3.68$ Up to 12,000 gallons 3.86$ Up to 12,000 gallons 4.06$ Tier 2 Over 26,000 gallons 5.10$ Over 26,000 gallons 5.36$ Over 26,000 gallons 5.63$ Over 12,000 gallons 6.08$ Over 12,000 gallons 6.38$ Over 12,000 gallons 6.70$ 3/4" 22.42$ 3/4" 23.54$ 3/4" 24.72$ 3/4" 25.96$ 3/4" 27.26$ 3/4" 28.62$ 1" 30.58$ 1" 32.11$ 1" 33.72$ 1" 35.41$ 1" 37.18$ 1" 39.04$ 1 1/4" 34.87$ 1 1/4" 36.61$ 1 1/4" 38.44$ 1 1/4" 40.36$ 1 1/4" 42.38$ 1 1/4" 44.50$ 1 1/2" 39.22$ 1 1/2" 41.18$ 1 1/2" 43.24$ 1 1/2" 45.40$ 1 1/2" 47.67$ 1 1/2" 50.05$ 2" 63.16$ 2" 66.32$ 2" 69.64$ 2" 73.12$ 2" 76.78$ 2" 80.61$ 3" 239.83$ 3" 251.82$ 3" 264.41$ 3" 277.63$ 3" 291.51$ 3" 306.09$ 4" 305.27$ 4" 320.53$ 4" 336.56$ 4" 353.39$ 4" 371.06$ 4" 389.61$ 6" 386.85$ 6" 406.19$ 6" 426.50$ 6" 447.83$ 6" 470.22$ 6" 493.73$ 8" 491.30$ 8" 515.87$ 8" 541.66$ 8" 568.74$ 8" 597.18$ 8" 627.04$ 2025202520162016All Customers*Some users were still on Cu Ft during 201620192019TIER STRUCTURE CHANGE2018ResidentialMultifamilyComm/IndMETER CHARGE 20152017 2018WATER 20152017METER CHARGE2023 2024All CustomersWATER2023 2024ResidentialMultifamilyComm/Ind20222022202120212020202010/28/2025Historical Rates 2015-2025Page 38 of 56 d ITEM REPORT Date: November 12, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.2 Prepared By: Thomas Brooks, Diversity, Equity, and Inclusion Manager Item Type: Report & Recommendation Department: Administration Item Title: Task Force Report and Recommendation Action Requested: Provide staff direction on the Human Rights and Engagement Task Force (HRE TF) report and recommendation. Information/Background: See background/information in the task force and staff reports. Resources/Financial Impacts: None. Relationship to City Policies: Recommendation would lead to an update to City Code, Chapter 2 Article III, Division 2. Budget Pillar: Better Together Values Impact: Engagement The Human Rights and Engagement Task Force was formed to re- evaluate community engagement in Edina, including past impact of the Human Rights and Relations Commission, and future direction for an advisory commission in Edina. Task force members and staff were able to research alternative engagement methods and discuss options for Edina. Commission are a well known engagement model within Edina. Equity The time spent in 2025 in the task force model created an opportunity to evaluate past commission work and discuss (re)alignment with current city priorities and direction with equity, inclusion, and the pillar of Better Together. The task force recommendation creates an additional opportunity to engage and elevate voices in the Edina community through a structured commission. The updated commission scope would prioritize diverse perspectives in decision making and building and sustaining meaningful relationships with other groups in the city that share similar priorities in the community that also work toward the goal of Better Together. Page 39 of 56 Supporting Documentation: 1. Human Rights Engagement Task Force Report 2. Human Rights Engagement Task Force Presentation Page 40 of 56 Report Human Rights and Engagement Task Force EdinaMN.gov Date: 11/04/2025 To: City Council From: Human Rights and Engagement Task Force Thomas Brooks, DEI Manager Subject: Human Rights and Engagement Task Force Final Report and Recommendation The City Council established the Human Rights & Engagement Task Force in December 2024, inviting current seated members of the Human Rights and Relations Commission (HRRC)—including those with expiring terms—to take part. Transitioning to a task force model provided greater flexibility, created space for members and community participants to engage more deeply in projects, with a clear emphasis on advancing the City’s ongoing equity and inclusion goals. Priorities Defined by the Task Force Charge: 1. Discussion and recommendation of an improved equitable and inclusive engagement structure to support the City’s equity and inclusion priorities and goals including leveraging public participation (IAP2) methods for discussion and research on barriers to engagement, alternative engagement structures, retention, recruitment of diverse lived experiences, impactful work, and intentional and meaningful community engagement. 2. Assisting City staff with the development of the Equity Strategic Action Plan (ESAP) including completing the Diamond Inclusiveness Assessment (DIA), reviewing the Equity Framework and final ESAP language, and participating in debriefing sessions to analyze and understand the data supporting the ESAP. 3. To serve, as needed, in an advisory capacity, in addition to the Edina Police Department Multicultural Advisory Committee (MAC), for significant human rights or inclusion related incidents that may occur in 2025. Background: Since the conclusion of the Race & Equity Task Force in 2019, the City of Edina has made significant progress in embedding equity and engagement into its values, policies, and everyday operations. While the enforcement of human rights violations rests with the Minnesota Department of Human Rights—established in 1967 and empowered through Page 41 of 56 Human Rights and Engagement Task Force Report 11/04/2025 the Minnesota Human Rights Act, the City has long recognized the importance of local advocacy and community connection. Edina’s first human rights body was created in 1968 as an ad hoc committee, which evolved over decades into the Human Rights & Relations Commission. For many years, this commission was the City’s primary advocate for basic human rights and community needs. This work expanded in 2016 with the creation of the Race & Equity Task Force, which examined City services, facilities, and institutions through an equity lens. The Task Force’s 21 recommendations reshaped Edina’s approach, leading to the creation of dedicated staff roles—including an Diversity, Equity & Inclusion Manager and a Community Engagement Manager. Additionally, the City’s Police Department established positions who prioritize equity and engagement in their daily work. In 2019, City Council further elevated this commitment by adopting Engagement (Better Together) & Equity as part of the City’s core budget values. Since then, staff have strengthened their capacity to apply equity in decision-making, engage historically underrepresented voices in intentional and meaningful ways, and implement strategies that improve access and outcomes for all residents. A few key examples of this shift are the: • Multicultural Advisory Committee (MAC), which directly advises the Edina Police Department on building trust, strengthening communication, and improving service delivery across the city’s diverse communities • Racial Equity Advancement Team (REAT), a cross-departmental team of employees working to consider the diverse needs of staff and community in decision making • Values Viewfinder Team, a cross-organizational working group that develops staff resources, supports projects and establishes processes to ensure City values are consistently applied in decision-making. Today, Edina’s equity and engagement landscape includes dedicated staff, active community partners such as MAC, neighborhood associations and the growing numbers of cultural nonprofit organizations. Also with the continued authority of the Minnesota Department of Human Rights to enforce civil rights law. Against this backdrop, the City is now considering the future role, need, and scope of a human-rights-centered body in Edina—one that complements state authority while reflecting the City’s deepened values of equity, inclusion, and community engagement. Summary of 2025 Meeting Discussions: Task Force meetings were held monthly, occurring on the third Wednesday of every month. The meetings were open to the public and meeting locations, including virtual login information, was consistently published on the City Calendar on the EdinaMN.gov website and BetterTogetherEdina.org. Additional invitations were sent throughout the last year to current and former commissioners and other community members. Full meeting summaries were made accessible to the public online at Human Rights & Engagement Task Force | Better Together Edina. Page 42 of 56 Human Rights and Engagement Task Force Report 11/04/2025 Meeting Overviews January 15 – Orientation & ESAP update. The Task Force received a presentation on task force orientation and affirmed the 2025 Task Force scope; ESAP status check in. February 19 – Citywide equity/engagement overview & ESAP. The Task Force received a presentation on all the various ways the City of Edina engages with the community and creates opportunities for public participation across the City’s departments; ESAP status check-in March 19 – Diamond Inclusiveness Assessment (DIA) & Equity Framework. Reviewed DIA survey results and the data that would be used for developing the ESAP priorities. April 16 – Barriers to public participation & board/commission survey. The task force and staff hosted a world café style workshop with task force members, other commissioners, and community members to review Board and Commission Survey results and provide additional context for improvement opportunities. Former and current board and commission members identified opportunities to improve the board and commission experience. Those improvements included: Recruitment: Expand interview panel, include commission chair, increase duration of interviews, add video screening component to application process to minimize number of interviews and create more time for interviewees; ensure clear communication of upcoming work and projects in recruitment Inclusion: Values Viewfinder Training for board and commission members; develop working relationships with city nonprofit partners serving underrepresented communities; where appropriate student members should be voting members Communication: Increase transparency on commission budgets and work plans; improve feedback from City Council to avoid commissions working on projects that will not be adopted or moved forward by City Council; Offer commission chair/vice-chair training to better manage agendas and shorten meeting length Roles: Develop specific orientations for each commission; improve cross collaboration between commissions for shared work plan goals and identify rising challenges and solutions; improve commission and council May 21 – Alternative public participation models; commission considerations. Explored approaches to broaden participation based on research conducted by the City of St. Louis Park. Page 43 of 56 Human Rights and Engagement Task Force Report 11/04/2025 June 18 – ESAP presentation. The Task Force received the final presentation on the ESAP priorities. July 16 – “What work would be meaningful?” + start of final report. Members discussed balancing tradition vs. transformation and avoiding duplication with MAC/community groups. Began drafting final recommendations on the future of the task force/commission and board/commission improvements. August 20 – Evaluation and Comparison of Other Human Rights or Equity Commission Ordinances. The task force evaluated the various roles and scopes of similar commissions in other cities – including New Brighton, St. Louis Park, Golden Valley, Bloomington - as members discussed current and past challenges of Edina’s Human Rights and Relations Commission. September 17 - Review and Edit Final Task Force Report. The task force reviewed and edited a draft of the final task force report and recommendations. Task Force Recommendation: The Human Rights & Engagement Task Force is recommending that a Accessibility, Belonging, & Community (ABC) Commission be established through City ordinance. Since 1968, Edina’s human rights commissions have played a long- standing role in advancing human rights locally—through research, recommendations, community events, the Tom Oye Award, and other initiatives. While commissions are advisory and City Council is not bound by their recommendations, commissions remain accountable to Council and provide a standing body that can respond to Council needs within their scope of work. Members of the task force also noted that the commission structure and title carry an added sense of commitment and visibility for the community and City Council. Since 2020 several cities have reshaped existing commissions or created new equity and inclusion focused commissions to better align volunteer work with staff and council priorities. Edina has the opportunity to do the same by establishing a new commission that should create an advisory role dedicated to fostering an inclusive, welcoming and engaged community. It is recommended the commission’s charge could include: 1. Advise on City Policies and Practices Advise on policies, programs, and services that foster a welcoming, inclusive city where all community members belong, guided by the City’s budget values and pillars. 2. Foster Welcoming and Inclusive Neighborhoods Support initiatives that strengthen neighborhood connections, encourage participation in community life, and promote inclusion and engagement opportunities with local human rights and cultural organizations or other community partners. Page 44 of 56 Human Rights and Engagement Task Force Report 11/04/2025 3. Advance Community Wellbeing Identify barriers and opportunities to belonging and recommend strategies that enhance community wellbeing. Purpose and Rationale As Edina continues to grow in diversity and community engagement, re-establishing a commission provides the necessary infrastructure to proactively address equity and human rights concerns, while ensuring alignment with the city’s strategic priorities. The updated scope or responsibilities is reflective of Edina’s increase in understanding equity, engagement, and the diverse needs of the community by investing in staff development, dedicating staff resources to support the City’s budget values, development of Edina’s Multicultural Advisory Committee (MAC), and an increase in local cultural and human rights organizations in Edina who also provide advocacy, education, awareness opportunities to the community. Benefits to Council and Community • A consistent advisory body with expertise in the diverse communities in Edina. • Diverse community perspectives and experiences to address challenges and opportunities. • Stronger partnerships with cultural and human rights organizations serving the Edina community Accountability and Structure The commission’s effectiveness and accountability can be reinforced through: • Regular reporting to the City Council. • Alignment with City work plans. • Clear evaluation measures of impact. Next Steps Council to provide initial feedback at tonight’s worksession. Staff will review the feedback from the Council and the report from the Taskforce and provide organization wide analysis and feedback about the recommendations for Council to consider. Page 45 of 56 Human Rights & Engagement Task Force Report and Recommendations 11/04/2025 1 Page 46 of 56 Purpose & Recommendation Purpose: o Provide an overview of Task Force work in 2025. o Share recommendations for the City’s future human rights and engagement efforts. Recommendation: o Discuss the Task Force’s recommendations on future direction. 2 Page 47 of 56 Task Force Background Established: December 2024 Participants: Current and former HRRC members Goal: Greater flexibility and deeper community engagement Emphasis: Advancing City equity and inclusion priorities 3 Page 48 of 56 Task Force Members 4 Bianca Dawkins Jasmine Brett Stringer Moore Jan Stone Jon Rogers* Jim Nelson* Staff Liaison: Thomas Brooks Staff Liaison: Zoe Johnson *No longer serving on Task Force Page 49 of 56 Task Force Priorities 5 Equitable & Inclusive Engagement: Leverage public participation (IAP2) methods Address barriers, retention, recruitment, and meaningful engagement Equity Strategic Action Plan (ESAP) Support Complete Diamond Inclusiveness Assessment (DIA) Review Equity Framework and ESAP language Advisory Role Support MAC & other human rights/inclusion issues as needed Page 50 of 56 Edina’s Equity & Engagement Journey Race & Equity Task Force (2016): 21 recommendations Key outcomes: •DEI Manager & Community Engagement Manager roles •Police Department positions prioritizing equity & engagement 2019: Engagement & Equity added to core budget values Active community partners: MAC, neighborhood associations, cultural nonprofits 6 Page 51 of 56 2025 Task Force Meetings Overview Monthly, third Wednesday of each month Open to the public, locations & virtual info published Meeting summaries available online Examples of Topics Covered: ESAP updates & Diamond Inclusiveness Assessment Barriers to public participation Alternative engagement models Evaluation of other cities’ human rights/equity commissions 7 Page 52 of 56 Key Findings Recruitment: Expand panels, add video screening, clear communication Inclusion: Training, partnerships with nonprofits, student voting members Communication: Transparency, improved City Council feedback Roles & Collaboration: Cross-commission working groups, commission orientations 8 Page 53 of 56 Task Force Recommendation 9 Recommendation: Establish an Accessibility, Belonging and Community (ABC) Commission via a City ordinance. Rationale: o Builds on Edina’s history of human rights commissions (since 1968) o Aligns with staff and Council priorities o Provides a standing advisory body for equity, inclusion, and community engagement Page 54 of 56 Proposed ABC Commission Scope •Advise on City Policies & Practices •Foster Welcoming & Inclusive Neighborhoods •Advance Community Wellbeing •Include protected classes language in scope 10 Page 55 of 56 d ITEM REPORT Date: November 12, 2025 Item Activity: Discussion Meeting: City Council Agenda Number: 3.4 Prepared By: Bill Neuendorf, Economic Dev Mgr Item Type: Report & Recommendation Department: Community Development Item Title: CLOSED SESSION: Discuss the Sale of Real Property Located at 5146 Eden Ave Action Requested: No action required; for discussion only. Information/Background: This item pertains to the potential sale of real estate located at 5146 Eden Avenue. City staff continues to negotiate terms of a sale to the team consisting of Hempel Real Estate, Monarch Development Partners and Jester Concepts. Staff will provide an update on the negotiations. Resources/Financial Impacts: This property has been tax-exempt and owned by the City or HRA since 1962. Sale of this property will result in one-time revenue when the transaction closes. Conversion of the land from a vacant tax-exempt property to an occupied taxable property will increase Edina's tax base for decades.. Relationship to City Policies: Comprehensive Plan, Grandview Development Framework Supporting Documentation: None Page 56 of 56