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HomeMy WebLinkAboutCity Council - 12/02/2025Approved Minutes Eden Prairie City Council Meeting 7 p.m. Tuesday, Dec. 2, 2025 City Center Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staff: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, and City Attorney Maggie Neuville MEETING AGENDA I. Call the Meeting to Order Mayor Case called the meeting to order at 7 p.m. All Council Members were present. II. Pledge of Allegiance III. Open Podium Invitation HRA.I. Call the HRA Meeting to Order Chair Case called the meeting to order at 7:02 PM. All HRA Members were present. HRA.II. Approve the minutes of HRA meeting held on September 2, 2025. MOTION: Toomey moved, seconded by Narayanan, to approve the HRA minutes from September 2, 2025. Motion carried 5-0. HRA.III. Adopt Resolution No. HRA 2025-02 Approving The 2026 Property Tax Levy And Accepting The Proposed 2026 Budget Getschow explained that on September 2, 2025, the HRA approved the proposed 2026 HRA property tax levy and budget. Also, on September 2, 2025, the Eden Prairie City Council adopted Resolutions consenting and approving the proposed 2026 HRA property tax levy and budget. HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING CITY COUNCIL MEETING AGENDA December 2, 2025 Page 2 Getschow noted that Minnesota law authorized the HRA to levy a tax with the consent of the City Council. This Resolution gives the consent needed for the HRA. MOTION: Nelson moved, seconded by Freiberg, to adopt Resolution No. HRA 2025-02 certifying the 2026 HRA property tax levy to be $230,000 and approving the 2026 HRA budget of $230,000 as reviewed by the Council. Motion carried 5- 0. HRA.IV. Adjournment MOTION: Toomey moved, seconded by Narayanan, to adjourn the HRA meeting. Motion carried 5-0. Chair Case adjourned the meeting at 7:06 PM. IV. Proclamations and Presentations V. Approval of Agenda and Other Items of Business MOTION: Narayanan moved, seconded by Nelson, to approve the agenda. Motion carried 5-0. VI. Minutes MOTION: Nelson moved, seconded by Narayanan, to approve the minutes of the Council workshop held Tuesday, November 18, 2025, and the City Council meeting held Tuesday, November 18, 2025, as published. Motion carried 5-0. VII. Consent Calendar A. Clerk’s List B. Adopt Resolution No. 2025-108 accepting donations and in-kind contributions C. Marshall Gardens by Lake West Development. Adopt Resolution No. 2025-109 amending Resolution No. 2025-076 relating to the conditional approval of the Development Agreement for Marshall Gardens D. Adopt Resolution No. 2025-110 approving Joint Powers Agreements and Court Data Services Subscriber Amendment to the CJDN Subscriber Agreements with the City on behalf of the Police Department and its Prosecuting Attorney E. Adopt Resolution No. 2025-111 and authorize entry into labor agreement with International Association of Firefighters (IAFF) CITY COUNCIL MEETING CITY COUNCIL MEETING AGENDA December 2, 2025 Page 3 F. Adopt Resolution No. 2025-112 and authorize entry into labor agreement with the International Union of Operating Engineers (IUOE) Local 49 G. Approve purchase and implantation of the Vitec IPTV in the remodeled Police Department H. Approve purchase of dispatch console furniture for Police Department remodel project I. Approve one-year Community Garden Plots Lease Agreement with the Metropolitan Airport Commission (MAC) J. Accept proposal and authorize entering a Contract for Goods and Services for the RTA Maintenance Trail Retaining Wall with Johnson Companies LLC K. Move to approve the contract for goods and services for the Park Entry Monument Sign Refurbishment Project with Indigo Signs L. Approve cost share and maintenance agreement between the Lower Minnesota River Watershed District and the City of Eden Prairie for the Study Area 3 Project M. Award contracts for 26-6253.1 Water Treatment Chemicals for 2026 N. Authorize Sale of Fire Vehicles to other Fire Departments MOTION: Narayanan moved, seconded by Toomey, to approve Items A-N on the Consent Calendar. Motion carried 5-0. VIII. Public Hearings and Meetings A. Adopt Resolution No. 2025-113 certifying 2026 Property tax levy, adopting 2026 budget, and approving 2026 HRA tax levy Getschow introduced Finance Manager Tammy Wilson to present this item. Wilson explained the Council adopted a Resolution certifying the proposed 2026 City budget and property tax levy on September 2, 2025. Calculations showed the budget to be $66,847,061 and the certified levy to be $52,844,814 before fiscal disparities distribution. The net tax levy after fiscal disparities distribution of ($2,725,032) is $50,119,782. Wilson said the 2026 proposed budget maintains City services with an increase of 6.6 percent of the general fund and a total budget increase of 6.5 percent, which includes the debt service payments. The tax levy is budgeted to increase 5.6 percent. CITY COUNCIL MEETING AGENDA December 2, 2025 Page 4 Wilson noted that, according to State statute, the final levy amount must be certified to the county auditor by December 29, 2025. City Council adoption of the final levy and budget will complete this process. Case asked if Wilson mentioned the budget had allocated funds for elections under the Administration department. Wilson confirmed that she had. Wilson showed images reflecting 2026 budget changes by category. Wilson explained the total property tax levy summary, noting the general fund and capital improvement fund increases. Wilson showed images with information regarding the debt levy on tax capacity and market value and explained both, noting a 20.6 percent budget increase from 2025 to 2026. Wilson explained the City tax impacts and the 2026 estimated market value of the City, which is $14.7 billion. She noted the total property tax impacts, including differences between residential, apartment, and commercial. Wilson explained the breakdown for the median value home’s property tax distribution between the City, County, school district, and other jurisdictions. She explained the difference in property tax distribution for commercial property between the City, county, state, school district, and fiscal disparities. She noted the monthly cost of City services for the general fund and debt service fund. Getschow explained the 2026 and 2027 budget process and timeline, and shared the Quality of Life survey results video. He shared images detailing the 2026 and 2027 budget goals, savings, efficiencies, and overall highlights. Getschow presented an overview of monthly City Services by department within the general fund and shared an image summarizing the total City budget. He reviewed the proposed property tax impacts, including tax capacity, levy amount, and rates, and referenced an article discussing the shifting tax burdens in the Twin Cities resulting from declining commercial values and rising residential values. Getschow shared a value notice from the City Assessor that explained the value increases in property in Eden Prairie in 2025, and provided an image explaining the tax capacity by property class. He explained a sample property tax calculation and the resulting tax rates for the median residential home. Getschow reviewed the 2026 proposed tax levy, describing the impacts of levy changes and comparing Eden Prairie’s levy position to other cities. Case noted that adopting a zero-levy increase would require a $2.5 million budget reduction. He noted that although a zero-increase levy might seem beneficial to CITY COUNCIL MEETING AGENDA December 2, 2025 Page 5 taxpayers, it would amount to only about seven dollars in monthly savings while necessitating significant service and staffing cuts. Getschow shared an image with the cumulative tax levy increases in comparable cities from 2017 to 2026. He explained the City and state fiscal relationship, fiscal disparities, and the tax base sharing program. He displayed information about the homeowner’s Homestead Credit refund and explained how taxpayers could access this aid. Narayanan thanked Getschow and Wilson for their presentation and thorough explanation of the tax levy. David Ringsmuth, 13166 Beehive Court, thanked the Council for the presentation and said a tax increase still hurts, especially with all the other State and County taxes that are going up as well. He asked how Mayor Case came up with the average of a seven-dollar difference if there was no tax-levy increase from the presentation. Case responded that he derived that difference from information that Getschow gave him, and that specific example was not in the presentation. Maria Ringsmuth, 13166 Beehive Court, applauded the excellent presentation. She noted that her tax bill has doubled since she moved to Eden Prairie in 2006, and asked if the Council would consider making the tax increase optional for residents who cannot afford to pay it. She continued that the City taxes would consume the 2.8 percent increase she would receive from Social Security. She noted that the City could cut Department budgets without cutting positions and save money. Larry Zieske, 18803 Magenta Bay, said Eden Prairie is the best place to live if a resident can afford it. He noted that this assessment went up $110,600, and his taxes went up 15.5 percent. Zieske’s tax increase for Eden Prairie Schools increased 13 percent. The school district will be overfilled by 500 students next year, which will require more funds. He said his increase in Social Security is only 2.8 percent, and he is being taxed out of his home. He noted that several of his friends have moved out of the state due to the high taxes. He asked the Council to look at all the fees and services that the City is paying for that could be eliminated. He continued that it was addressed during the presentation, that the residents are bearing the burden of revenue in their property taxes, and at some point, property owners are going to have enough. He said wage increases across the board are not the norm in the private sector, and the City should look at controlling the budget as best as possible, and wage increases for City Staff should not go beyond the cost-of-living increase. He said the City does not need the platinum version of a remodel for the Police Department, or any new building. He noted that while the City Council is doing a good job, the citizens have to push for improvement and a better tax rate. CITY COUNCIL MEETING AGENDA December 2, 2025 Page 6 Julie Baker, 8700 Braxton Drive, thanked the Council for the presentation and described the financial strain she is facing as a single homeowner. She urged the Council to find more creative ways to reduce taxes, questioned where tax dollars are going, and expressed concern about the State's shift from a surplus to a deficit in two years. She said she appreciates the addition of new firefighters, but asked if fewer could be hired to ease the levy impact. She requested that the City adhere to a stricter budget, avoid comparisons to other cities, and make deeper cuts so residents can retain more of their income during these difficult economic times. MOTION: Toomey moved, seconded by Narayanan, to close the Public Hearing. Motion carried 5-0. Case thanked the speakers for coming forward to address the Council. The Council all struggled with this shift that has occurred in residential property taxes. The Council has tried to make the property tax levy as low as possible, but there is a complexity about state tax formulas and increases that are hard to process and explain. A few of the Councilmembers are also on fixed incomes, so he understands that struggle. The Council has to consider whether it is responsible to drop services for 65,000 people who are the most impacted. While property taxes have gone up, so has the market value of houses in the last 10 years. The City has quality Staff and that is because the City pays them competitively. Toomey agreed with Case and said the Council struggled deciding on a property tax levy increase. The Police Department must be renovated as it is the same location as when the department had 35 members, but there are now 73 officers. It is one of the only Police Departments in the State that does not have indoor parking. Having indoor parking will save money long term on vehicle maintenance. The City is providing the best services with reasonable taxes. Case noted the $26 million Police Department renovation has a small impact on the levy, even though it’s a big number. Getschow added the Police Department renovation has been planned for 10 years. Case stated the City was able to get a lower bond rate due to its triple A bond rating. The City has always budgeted conservatively, and that pays off then in lower levies. Nelson noted the triple-A bond rating also helps cut taxes. The City has wonderful employees who have stuck with Eden Prairie for so long. If residents are on a fixed income and cannot pay their taxes, they should investigate deferring their taxes until next year. Nelson discussed the importance of maintaining City parks and trails, so families can use them free of charge if they cannot afford to go on vacation. Staff worked hard to get the lowest possible tax levy in the Twin Cities. CITY COUNCIL MEETING AGENDA December 2, 2025 Page 7 Narayanan acknowledged the tax levy is difficult to understand and noted that budgeting is complex due to state-mandated tax formulas. The community survey guided the Council’s decisions, and residents prioritized strong public safety, parks, and services. Narayanan highlighted the need to adequately fund the Fire Department for quick response time, and stated that the Council explored all options to reduce the levy while still listening to residents’ concerns. Case stated that the decision to add eight firefighters instead of six was not arbitrary and came down to response times. Toomey added the cost of the additional firefighters is funded by the SAFER grant. Case noted a smaller levy increase would require severe budget cuts, which would be felt by residents. Freiberg noted that the Council is listening to the residents. The Council takes the tax levy very seriously and has many discussions before making this decision. Opting out of property taxes would have to happen at a higher level of government in cooperation with cities. Freiberg said he knows the hearts of the other Councilmembers, and none of them want to see residents fall on hard times. MOTION: Toomey moved, seconded by Narayanan, to adopt Resolution No. 2025- 113 certifying the 2026 property tax levy to be $52,884,814 and approve the 2026 budget of $66,847,061 as reviewed by the Council, and approve the HRA tax levy and budget of $230,000. Motion carried 5-0. Case thanked all of the speakers for coming forward and being respectful. B. Approve first and second readings of Ordinance No. 19-2025, updating the 2026 fee schedule for the Administration of official controls, and adopt Resolution approving the summary ordinance. Getschow explained this Ordinance establishes a fee schedule for the City's costs in administering official controls pursuant to Minnesota Statutes Section 462.353, Subd. 4. Minnesota Statute allows a municipality to prescribe fees sufficient to defray the costs incurred by it in reviewing, investigating, and administering an application for an amendment to an official control or other approval required under an official control. He explained that Minnesota Statute defines an "official control" as Ordinances or regulations that control the physical development of a city and implement the general objectives of the comprehensive plan. Official controls may include ordinances establishing zoning, subdivision controls, site plan regulations, sanitary codes, building codes, and official maps. Case stated if the public wants to look at all the City fees, which are competitive with the area, that information is available via the City's website. He asked if anyone wished to address the Council for the fee updates during the Public Hearing. No one wished to address the Council. CITY COUNCIL MEETING AGENDA December 2, 2025 Page 8 MOTION: Narayanan moved, seconded by Nelson, to close the Public Hearing, and approve the first and second readings of Ordinance No. 19-2025 updating the fee schedule for Administration and official controls, and adopt Resolution No. 2025-114 approving the summary for publication. Motion carried 5-0. C. Adopt Resolution No. 2025-115 approving 2026 fees for City services Getschow explained that this Resolution updates the fee schedule for the City’s services not covered by Ordinance. Case asked if anyone in the audience wished to address the Council regarding this resolution and fees during the Public Hearing. No one wished to address the Council. MOTION: Nelson moved, seconded by Narayanan, to close the Public Hearing and adopt the 2026 Fee Resolution No. 2025-115. Motion carried 5-0. IX. Payment of Claims MOTION: Toomey moved, seconded by Freiberg, to approve the payment of claims as submitted. Motion was approved on a roll call vote, with Freiberg, Narayanan, Nelson, Toomey, and Case voting "aye." X. Ordinances and Resolutions XI. Petitions, Requests, and Communications XII. Appointments Reports A. Reports of Council Members B. Report of City Manager C. Report of Community Development Director D. Report of Parks and Recreation Director E. Report of Public Works Director F. Report of Police Chief G. Report of Fire Chief CITY COUNCIL MEETING AGENDA December 2, 2025 Page 9 H. Report of City Attorney XIII. Other Business Getschow noted that because the budget was adopted at tonight’s meeting, there is no need to hold another meeting in December. The next meeting is in January 2026. XIV. Adjournment MOTION: Narayanan moved, seconded by Toomey, to adjourn the meeting. Motion carried 5-0. Mayor Case adjourned the meeting at 9:03 p.m. Respectfully Submitted, ___________________ Sara Potter, Administrative Support Specialist