09-08-2025 CC WS
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CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
September 8, 2025
Mayor Ryan called the work session to order at 6:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald,
Councilmember von Oven, Councilmember Kimber
COUNCIL MEMBERS ABSENT: Councilmember Schubert
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Eric Maas, Planning Director; Patrick
Gavin, Communications Manager; Jenny Potter, City Clerk; Kelly Grinnell, Finance Director
PUBLIC PRESENT:
Presentation of Preliminary 2026 Levy and General Fund Budget
Kelly Grinnell, Finance Director, gave a recap of previous work session discussions. Ms. Grinnell
presented an updated draft showing balanced revenues and expenditures, with overall spending
projected to rise 4.8 percent from 2025. Much of the increase stems from wages and benefits,
including a projected 3 percent cost-of-living adjustment, step increases for eligible employees, a
new state requirement for paid family leave, and a capped 15 percent rise in health insurance
premiums. The Sheriff’s contract and election costs are also expected to grow, with the latter
reflecting both a primary and general election year.
The City Council reviewed expenditures across major functions, with public safety accounting for
the largest share at more than $6.1 million. Revenues are projected to match expenditures at $16.9
million, with property taxes providing the largest portion, and licenses, permits, and service
charges also increasing. Ms. Grinnell noted that favorable bond results allowed the projected levy
increase to fall from 7.2 percent to 6.9 percent, but the Council ultimately voted to set the
preliminary levy at 7.2 percent, expressing the intent to bring it below 7 percent by December
when the final levy is adopted.
For residents, the average market value of homes rose 4.5 percent for taxes payable in 2026, with
a median-valued home of $501,600 expected to see an annual city tax increase of about $75.
Commercial properties saw much smaller value growth and therefore less impact. Ms. Grinnell
also showed a comparison to other metro-area cities. Chanhassen is near the lower end of proposed
levy increases, with only a handful of cities projecting smaller hikes.
Discussion also turned to Carver County’s request that Chanhassen offer in-person absentee voting
at City Hall beginning in 2026. While the service would improve convenience for residents, the
city would need to cover most of the long-term costs through added staffing and election judges.
City Council Work Session Minutes – September 8, 2025
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Councilmembers voiced support for voter access but were cautious about the financial and staffing
burdens.
Laurie Hokkanen, City Manager, discussed the need to plan for a new fire engine in 2029, pointing
to rising costs and long backlogs nationwide. While not part of the 2026 budget, councilmembers
emphasized the importance of addressing these capital needs early. The preliminary levy and
Truth-in-Taxation hearing will be held on December 15, when the final levy and budget will be
set.
Discuss Accessory Structure Ordinance for Agricultural Buildings
Eric Maas, Planning Director, reviewed a draft ordinance related to accessory structures on
agricultural properties, prompted by a request to construct a 5,000-square-foot farm building.
Current code limits accessory structures in both residential and agricultural districts to 1,000
square feet, regardless of parcel size. Staff explained that under Minnesota law, agricultural
buildings are exempt from building permits but must still comply with zoning standards. The
proposed amendment would remove the 1,000-square-foot cap for agricultural buildings in the
Agricultural Estate (A2) district, while requiring them to meet all other standards such as setbacks
and impervious surface limits.
Councilmembers were generally supportive of the proposed amendment for agricultural
buildings but voiced an interest in reviewing the size limitation more broadly based on a recent
citizen action request submitted to the city.
The City Council will revisit the topic at their September 22nd work session.
Mayor Ryan adjourned the work session at 6:58 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk