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Home My WebLink About2025-11-18 Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, November 18, 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 4. Adjournment Page 1 of 39 d ITEM REPORT Date: November 18, 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 Action Requested: Discussion only Information/Background: Council will discuss Enterprise Fund budgets and receive General Fund budget updates regarding changes made since Preliminary Levy adoption, Firefighter grant update, Human Services funding along with reviewing and finalizing budget work plan. This is a continuation of series of budget discussions with Council Members in advance of the final levy approval in December 2025. Resources/Financial Impacts: The City is also required to certify the final property tax levy to the county by December 28, 2025. Relationship to City Policies: The Biennial budget details the key priorities of the City Council and the resources dedicated to achieve results for Edina residents utilizing strategic guidance from Vision Edina, the Comprehensive Plan, and the Capital Improvement Plan. Budget Pillar: Strong Foundation Reliable Service Livable City Better Together Values Impact: None Supporting Documentation: 1. Staff Presentation Page 2 of 39 2. 2026-2027 Budget Work Plan Draft Document 3. 2026-2027 Capital Equipment Replacement Plan 4. 2026-2027 Capital Improvement Project Plan Page 3 of 39 EdinaMN.gov 2026 –2027 Levy and Budget November 18, 2025 Page 4 of 39 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 Council Work Session & Council Meeting Adopt Preliminary Levy September 30th Finance Deadline Preliminary levy due to County November 18th Council Work Session Council Work Session Dec. 2 nd Council Work Session & Council Meeting Public hearing and adopt final 2026/27 Levy Dec. 16th Council Meeting Adopt Final Levy Dec. 28 th Finance Deadline Final levy certification due to County January 2025 Finance Deadline Publish detail budget book to website Page 5 of 39 Agenda •Enterprise Funds •General Fund Update •Changes since Preliminary Levy approval •Paramedic Firefighter Grant update •Human Services Funding •Review Budget Work Plan Page 6 of 39 2026 Draft Consolidated Budget Edina Consolidated Budget (in millions) $226M Governmental Funds $142.5M General Fund $72.1M Debt Service Fund $11.6M Construction Fund $47.6M Special Revenue Funds, including HRA $11.03M Enterprise Funds $73.3M Utility Fund $45.7M Liquor Fund $11.2M Park Enterprises $16.3M Internal Service Funds $10M Risk Management $2.7M Equip. Operations $2.2M IT $3.1M Facilities $1.8M Page 7 of 39 Enterprise Funds Aquatic Golf Braemar Art Utilities Liquor Center Course Arena Field Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating Revenues 33,848,027$ 10,960,000$ 1,160,901$ 6,274,400$ 2,999,125$ 570,150$ 125,000$ 1,530,798$ 982,759$ 58,451,160$ Intergovernmental 182,000 - - 1,500 - - - - - 183,500 Investment Income 447,020 45,320 49,440 53,560 13,390 26,780 4,120 10,300 4,936 654,866 Other Revenues 5,000 - - - - - - - - 5,000 Transfers In - 5,400 19,400 100,700 192,250 1,330 501,025 721,000 446,532 1,987,637 TOTAL REVENUES AND TRANSFERS IN 34,482,047 11,010,720 1,229,741 6,430,160 3,204,765 598,260 630,145 2,262,098 1,434,227 61,282,163 EXPENSES AND TRANSFERS OUT - BY TYPE Cost of Goods Sold - 7,348,000 81,500 306,000 128,125 - - 39,500 15,000 7,918,125 Personnel Services 3,957,086 1,901,660 696,847 2,906,674 1,639,083 224,433 340,623 1,264,187 1,041,847 13,972,440 Contractual Services 11,060,699 820,569 341,188 933,677 1,286,102 301,414 83,824 501,678 427,645 15,756,796 Commodities 1,419,150 51,500 159,121 508,050 160,363 19,675 29,275 207,456 149,805 2,704,394 Internal Services 1,801,447 403,356 74,939 594,633 338,439 98,199 63,043 259,064 177,334 3,810,453 Capital Outlay 25,306,036 - - 571,000 - 200,000 - - - 26,077,036 Interest and Fiscal Charges 1,643,406 - 5,900 165,194 43,025 - - - - 1,857,525 Transfers and Contributions 517,051 650,000 - - - - - - - 1,167,051 TOTAL EXPENSES AND TRANSFERS OUT 45,704,875 11,175,085 1,359,495 5,985,228 3,595,137 843,720 516,765 2,271,885 1,811,631 73,263,820 CHANGE IN NET POSITION (11,222,828)$ (164,365)$ (129,754)$ 444,932$ (390,372)$ (245,460)$ 113,380$ (9,787)$ (377,404)$ (11,981,657)$ ESTIMATED ENDING NET POSITION 109,046,986$ 598,557$ 2,537,575$ 3,979,533 2,098,791$ 5,662,787$ 34,001$ 74,594$ 1,386,384$ 125,419,209 2026 ENTERPRISE FUND BUDGETS Page 8 of 39 Internal Service Funds Purpose – Allocating central “overhead” expenses: Risk Management – Property, liability & workers’ comp insurance Equipment Operations – Maintain vehicles and equipment Information Technology equipment & services Facilities Management – Maintain and operate facilities Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operational Revenues 2,788,877$ 2,247,840$ 2,992,865$ 1,912,406$ 9,941,988$ TOTAL REVENUES AND TRANSFERS IN 2,788,877 2,247,840 2,992,865 1,912,406 9,941,988 EXPENSES AND TRANSFERS OUT - BY TYPE Personnel Services 499,042 849,612 1,465,496 609,418 3,423,568 Contractual Services 2,207,141 245,820 1,303,685 1,080,882 4,837,528 Commodities 8,000 1,108,300 215,000 93,239 1,424,539 Capital Outlay - - 265,000 101,250 366,250 TOTAL EXPENSES AND TRANSFERS OUT 2,714,183 2,203,732 3,249,181 1,884,789 10,051,885 CHANGE IN NET POSITION 74,694 44,108 (256,316) 27,617 (109,898) 2026 INTERNAL SERVICE FUND BUDGETS Page 9 of 39 2026 – 2027 Preliminary Tax Levy Proposal – Updated 2024 Adopted 2025 Adopted 2026 Preliminary Proposed 2027 Preliminary Proposed 2026 Final CM Proposed 2027 Final CM Proposed General Fund $43,744,165 $47,543,215 $54,435,919 $58,555,298 $53,212,940 $57,279,645 Debt Service $3,471,700 $5,377,639 $6,448,283 $6,771,866 $6,448,283 $6,771,866 Construction $4,470,000 $3,668,000 $2,913,450 $4,219,278 $2,913,450 $4,219,278 Special Street $1,481,000 $1,762,000 $1,053,000 $1,355,400 $1,053,000 $1,355,400 Special Park $1,000,000 $400,000 $400,000 $400,000 $400,000 $400,000 HRA $251,700 $259,300 $267,100 $275,100 $267,100 $275,100 Total Tax Levy $54,418,565 $59,010,154 $65,517,752 $71,576,942 $64,294,773 $70,301,289 % Increase 9.15%8.44%11.03%9.25%8.96%9.34% Page 10 of 39 2026 – 2027 Proposed City Manager 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 •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 ARPA funds) •Strategic Capital and Equipment Investments Page 11 of 39 2026 – 2027 Projects Funded with Alternative Fundings •Mental Health Services Advancements (Public Safety Aid): $300,000 •Budget Work Plan – Fire Station 3 Site Plan (Construction Fund Reserves): $1,500,000 •Budget Work Plan – Edinborough Park Study (General Fund Surplus): $150,000 •Budget Work Plan – Process Automation and AI Exploration (IT ISF): $50,000 •Budget Work Plan – Comprehensive Plan (General Fund Surplus): $250,000 •Budget Work Plan – Comprehensive Plan – Park System Plan (General Fund Surplus): $200,000 •Budget Work Plan – Enhancing Support for Staff – Vulnerability Assessment (Risk ISF): $10,000 Page 12 of 39 4.87% 4.27% 2.28% 0.38% 1.89% 2.33% 0.52% 1.96% 1.47% 0.31% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Base New Debt 12 Firefighter/Paramedic Budget Additions Budget Work Plans Budget Changes at Preliminary Approval 11.03% 9.25% 2026 2027 Page 13 of 39 4.87% 7.03% 2.28% 0.38% 1.80% 1.58% 0.41% 0.27%1.40% 0.08% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Base New Debt 6 Firefighter/Paramedic Budget Additions Budget Work Plans Budget Changes - City Manager Proposed 8.96%9.34% 2026 2027 Page 14 of 39 Public Safety 53% Public Works 17% General Government 15% Parks & Recreation 12% Community Development 3% Uses General Fund – 2026 Budget Property Taxes 75% Charges for Services 10% Licenses & Permits 8% Intergovernmental Revenues 3% Franchise Fees 1% Other 1% Fines & Forfeitures 1% Interest on Investments 0.6% Sources Page 15 of 39 2026 Human Services Funding $50,000 Edina Resource Center $19,000 VEAP $18,000 Cornerstone $17,000 Senior Community Services $20,000 Edina Historical Society $12,000 Help at your Door $12,000 Beacon Interfaith $9,500 Edina Give and Go $7,500 Normandale Center for Healing and Wholeness $5,000 Oasis for Youth $170,000 Total budget for 2026 Page 16 of 39 Draft Budget Work Plan 2026-2027 •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 Page 17 of 39 Draft Budget Work Plan 2026-2027 •Enhancing Support for Staff Experience Social Disruption Events •Mental- Health Service Advancements •Assessing Transition •Edinborough Park •Process Automation & AI Exploration •Staffing Study Page 18 of 39 Draft Budget Work Plan 2026-2027 •Affordable Housing Advancement and Growth •Comprehensive Plan Update •Zoning Code Update •Safe & Equitable Mobility Action Plan Page 19 of 39 Draft Budget Work Plan 2026-2027 •Quality of Life Survey •Community Engagement Online Platform Update •Long-Term Art Center Plan Page 20 of 39 2026 Preliminary Tax Rate Comparison > 45,000 Population 52.3% 48.7% 46.0% 39.1%38.3% 33.2%32.5%33.0% 30.0% 27.3% 2026 Prelim Avg. Tax Rate: 38.0% 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 2026 Prelim Tax Rate 2025 Average 2026 Prelim Average Credit: City of Plymouth 2025 Financial OverviewPage 21 of 39 2026 Preliminary Tax Rate Comparison > 10,000 Population 70.7%67.9%66.1%65.7%63.2%62.1% 57.6%55.7%55.3%52.3% 48.1% 43.6%42.0%39.1% 33.0%32.5%30.0%27.3% 2026 Prelim Avg Tax Rate: 50.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2025 Tax Rate 2026 Prelim Tax Rate 2025 Average 2026 Prelim Average Credit: City of Plymouth 2025 Financial OverviewPage 22 of 39 Tax Capacity, Certified Levy and City Tax Rate – City Manager Proposed $157,910,360 $164,716,554 $169,928,228 $190,473,325 $205,645,781 $211,649,964 $215,088,974 $39,659,543 $42,021,871 $45,367,336 $49,855,000 $54,418,565 $59,010,154 $64,294,773 27.9%28.8%28.9%28.1%28.4%30.2%32.4% -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 2026* Tax Capacity Certified Tax Levy City Tax Rate *2026 is estimate based on staff proposedPage 23 of 39 Debt Service Levy Projection (approved vs. future) $- $1 $2 $3 $4 $5 $6 $7 $8 $9 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 Future Potential Projects Page 24 of 39 How is your 2026 property tax distributed? Page 25 of 39 2026 Estimated Levy Impacts at CM Final Proposed •In 2025 a $500,000 value home pays about $126.54 per month in property taxes to fund all City provided services. •In 2026 a $500,000 value home pays about $135.00 per month in property taxes to fund all City provided services (increase $9.41/month) Page 26 of 39 2026 Budget Options Options 2026 % Levy Increase 2026 estimated impact $ Total Tax Levy (TTL) % Total Tax Levy (TTL) Change from Prelim +/- to 2026 Levy 2027 % Levy Increase Option 1: Base budget with 6 FF/Paramedics in 2026 8.96%$9.41/mo.$64,294,773 -2.07%-$1,222,979 9.34% Option 2: Option 1 + 6 additional FF/Paramedics in July 2026 9.86%$10.56/mo.$64,825,656 -1.17%-$692,096 9.23% Option 3: 12 FF/Paramedics starting in Jan 2026 10.75%$11.70/mo.$65,356,539 -0.28%-$161,213 9.12% Page 27 of 39 Next Steps •Truth in Taxation Hearing on Dec. 2nd •Council Adopts Final Tax Levy and Budget on Dec. 16th Page 28 of 39 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 Plan 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). Site planning will also include PD/CH site work. Construction Reserve. Will be reimbursed with future bond. Page 29 of 39 DRAFT 2026-27 Budget Work Plan 2 Park Improvements: Fred Richards 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 Cahill Industrial Area Sanitary Sewer Project (South Trunk Sanitary) 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. It is included in the current utility rates. PD/CH Renovation 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 will be funded with construction fund reserves, will be reimbursed with future bond. This design is tied to FS#3 design work. Replace Pump Room at Edina Aquatic Center Construction is underway Taking place in fall 2025 into spring 2026 with bonding period going into the budget in 2026. Continued management of construction into spring 2026. Estimating $8.4 million project cost with $6.7 million bonded included in debt service projections, remaining portion with construction reserves. Page 30 of 39 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. $5,000 other program investments. Risk Fund to pay for this item. 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, long term plan and funding discussions. Police and Fire are currently working with Hennepin County on evaluating overlapping programs and long-term solution. Previous funded through Public Safety one-time funding at $150,000/year (for two years). Funding for 2026 and 2027 through Public Safety Aid. Need to determine long-term plans. Page 31 of 39 DRAFT 2026-27 Budget Work Plan 4 Assessing Transition Council made the decision to transition services to the County. Staff are working on the transition. Complete the transition of services to the County in 2026. Estimated savings of $500,000 in 2026 and $1,000,000 in 2027. 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 2026 or 2027 (staffing dependent). To be funded with Budget Surplus. 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 balance in 2026/27. 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 32 of 39 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 Surplus. $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 Surplus) Page 33 of 39 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 Consultant has been selected and work has begun. 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. Project can be done within the 2025 $250,000 allocation. Safe & Equitable Mobility Action Plan (SEMAP) Update: 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 34 of 39 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. Refine Community Engagement Methods The City is reviewing community engagement practices to focus on engagement opportunities outside of Boards and Commissions. Discussion last held at March 4 work session. 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. Continue reviewing engagement opportunities and B&C for alignment with city goals. 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. Page 35 of 39 DRAFT 2026-27 Budget Work Plan 8 Long-Term Art Center Plan Hennepin County has started construction phase of the project with a planned opening in late 2027. Construction completion planned for Q3/Q4 2027 opening. Staff will develop a management plan for staffing and operational programming for the facility. Awaiting lease agreements with Hennepin County/Hennepin County Library for next steps of approval. Budget includes $200,000 transfer from General Fund in 2026 and $200,000 transfer in 2027. Page 36 of 39 2026 Capital Equipment Project Listing (CEP) Description Date Purchased Useful Life Adjusted Useful Life Replacement Cost Replacement Year Department 2016 Ford F350 2015 10 11 45,000.00$ 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 37 of 39 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 38 of 39 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 39 of 39