08-11-2025 CC WS1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
August 11, 2025
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember Kimber, Councilmember
Schubert, Councilmember McDonald
COUNCIL MEMBERS ABSENT: Councilmember von Oven
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Eric Maas, Planning Director; Richard
Rice, IT Manager; Patrick Gavin, Communications Manager; Jerry Ruegemer, Parks Director;
Jenny Potter, City Clerk; Kelly Grinnell, Finance Director
PUBLIC PRESENT:
Preliminary 2026 Budget & Levy Discussion
Kelly Grinnell, Finance Director, presented information on the preliminary 2026 General Fund
budget and 2026 property tax levy. The presentation covered wage and benefit projections,
including a projected 3% cost-of-living adjustment, 3% step increases for eligible employees,
and a 15% rise in health insurance premiums. Ms. Grinnell talked about costs tied to the new
state paid family leave program. Other budgetary impacts included a 5.9% increase in the
Sheriff’s contract, added election costs, and the potential for the city to take over in-person
absentee balloting in 2026.
Matt Unmacht, Assistant City Manager, and Jenny Potter, City Clerk, reviewed a request from
Carver County to offer in-person absentee voting at City Hall starting in 2026. The option would
serve only city residents, including those with Excelsior or Chaska mailing addresses within city
limits, and would supplement existing voting methods.
Absentee voting would run for six weeks before Election Day, plus four extra days for each
election, requiring additional staff and election judges. Carver County would assist with training
and some first-year costs, but the city would cover all expenses after 2026. The costs are estimated
at $31,000 in 2026 and $45,000 in 2028. Staff noted the service would be convenient for voters
but would add significant workload and ongoing costs.
The City Council expressed interest in making voting more accessible and convenient for
residents, but indicated that, for the immediate future, Carver County would need to make its
financial support more definitive and robust until Chanhassen has the time to incorporate these
additional costs into its regular annual budget.
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Ms. Grinnell continued presenting preliminary budget figures projecting a 7.6% overall increase
in wages and benefits and a 1.7% rise in non-wage expenditures compared to 2025. Total General
Fund expenditures are estimated at $16.9 million, with revenues projected to match. The council
also reviewed levy projections from last year’s Truth in Taxation process, showing a possible total
levy of $16.47 million in 2026, up 7.2% from 2025, with further increases expected in subsequent
years due to major projects like the Civic Campus and Chanhassen Bluffs Recreation Center. No
significant changes to levy plans were proposed, and budget adoption remains scheduled for Dec.
15.
The preliminary numbers presented at Monday’s meeting indicated that it would result in a
balanced budget for the city.
Commercial Vehicle Parking Discussion
Charlie Howley, Public Works Director/City Engineer, reviewed current regulations, which
prohibit any vehicle from parking on a public street for more than 48 hours, as well as City Code
restrictions on parking trucks with multiple axles in residential areas overnight, except when in
an enclosed garage or for construction purposes. Kerber Boulevard, due to its collector street
status, has not historically been considered part of a residential neighborhood. A citywide map of
“no parking” zones was presented, along with a potential designated commercial vehicle parking
area at Park Road and Park Drive, which is centrally located, wide enough for truck parking and
surrounded by industrial zoning.
Mr. Howley presented four possible options for the City Council. First, make no changes and
enforce sightline parking issues. Second, classify Kerber Boulevard as residential and apply
existing overnight truck restrictions. Third, prohibit overnight commercial vehicle parking
citywide. Fourth, create a designated commercial vehicle parking zone along Park Road and Park
Drive with no overnight parking allowed.
The City Council decided to select option one, making no changes and enforcing sightline
parking issues. The City Council will reevaluate the topic if additional concerns are raised.
Market Boulevard Improvement Project Discussion
Charlie Howley, Public Works Director/City Engineer, revisited plans for the Market Boulevard
Improvement Project. The City Council last decided to pause design work and delay most
construction until 2027 to avoid conflicts with other major downtown projects.
The City Council reviewed two primary paths: full reconstruction or a more simplified pavement
rehabilitation. Both would involve some 2026 work, including a railroad crossing closure (about
three weeks), intersection improvements at Market Boulevard and West 78th Street (about four
weeks), and installation of a stormwater reuse system required by permitting and scheduled for
next fall. A full reconstruction could follow the previously favored mini-roundabout/single lane
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median design, while rehabilitation could be completed entirely in 2026 without ruling out future
corridor reconstruction.
The City Council expressed interest in moving forward in the short term with requested upgrades
to the 78th Street intersection, improvements to the railroad crossing at the southern end of
Market Boulevard, enhancements to the pedestrian safety crossing near Market Square and
repairs to sidewalks.
The City Council would like to take a more holistic look at Market Boulevard and general
downtown traffic flow in order to make more significant and impactful decisions around traffic
calming and pedestrian access.
Mayor Ryan adjourned the work session at 6:56 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk