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12.15.2025 CC MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES DECEMBER 15, 2025 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember Schubert, Councilmember von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: None. 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; Kelly Grinnell, Finance Director; Jenny Potter, City Clerk PUBLIC PRESENT: Linda Paulsen Bill Schubert, 961 Meadowlark Lane PUBLIC ANNOUNCEMENTS: Mayor Ryan stated that the previous Public Announcement had been rescheduled for January. CONSENT AGENDA: Councilmember Schubert requested to remove item 22 from the Consent Agenda to discuss at a future date. Councilmember Kimber seconded. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. Councilmember McDonald moved, Councilmember von Oven seconded that the City Council approve the following consent agenda items 1 through 21 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated November 24, 2025 2. Approve City Council Work Session Minutes dated November 24, 2025 3. Approve City Council Special Work Session Minutes dated December 8, 2025 4. Receive Economic Development Commission Minutes 5. Receive Commission on Aging Minutes dated October 17, 2025 6. Receive Parks and Recreation Commission Minutes dated October 28, 2025 City Council Minutes – December 15, 2025 2 7. Receive Planning Commission Minutes dated November 18, 2025 8. Approve Claims Paid dated December 15, 2025 9. Approve Contract for 2026 Policing Services with Carver County Sheriff’s Office 10. Approve Personnel Policy Updates 11. Adopt 2026-2028 Labor Contract with Local Union 49 12. Approve Schematic Design for Chanhassen Bluffs Community Center 13. Determining the City will not Waive the Statutory Tort Limits 14. Approve Stormwater Operations and Management Agreement for Pioneer Ridge (25-01) 15. Budgeting Software Contract 16. Approve Memorandum of Understanding with Carver County for the Cardboard Recycling Site at Public Works 17. Art and Design Contract for Lake Ann Park Beach Improvement Project 18. Resolution 2025-84: Approve vacating a portion of Dogwood Road 19. Resolution 2025-85: Adopt 2026 Pay Compensation Plan 20. Resolution 2025-86: Approving the Application for Metropolitan Council Environmental Services 2026 Private Property Inflow and Infiltration Grant Program 21. Resolution 2025-87: Authorize Construction Services Contract for 2025 Stormwater Pond Improvement Project 22. Ordinance XXX: Permitted Burning Code Amendment (removed from agenda) All voted in favor, and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Linda Paulson, a Resident, thanked the City for its performance on the Chanhassen Project 25- 01. Bill Schubert, 961 Meadowlark Lane, discussed the proposal for fire burn permits. He said that he compared the issues with what was presented by the Minnesota Department of Natural Resources. He commented that he had difficulties getting to the burn permit online. He discussed that the fee was nonrefundable and asked about what happened with the permit being rejected. City Council Minutes – December 15, 2025 3 He said if he were paying a fee, he would expect a response. He discussed the difficulty with the regulation requirements for the distance from the road or structures to the burn pile. He asked for the definition of a clean-burning device. He asked about what was permitted to burn. He requested continued discussion so he could burn his yard waste. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATES. None. PUBLIC HEARINGS. 1. Ordinance 754: Adopting the 2026 Fee Schedule and Approving Summary Publication of Ordinance Kelly Grinnell, Finance Director, provided a summary of the changes made to the fee schedule. Mayor Ryan opened the public hearing. Bill Schubert, 961 Meadowlark Lane, noted that the burning code was located in the fee schedule. Mayor Ryan closed the public hearing. Mayor Ryan asked if they could remove the permitted burning code language from the fee schedule for tonight. Ms. Grinnell confirmed this information. She said that the fee was new, so it would not be included. Councilmember Schubert moved, Councilmember McDonald seconded that the Chanhassen City Council adopt the 2026 Fee Schedule Ordinance and approve the Summary Ordinance for Publication, along with removing the new fees for fire burn permits. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2025-88: Truth-in-Taxation Public Hearing on the 2026 Budget – Approving the 2026 Final Budget, 2026-2030 Capital Improvement Plan, and Final 2025 Tax Levy, Collectible in 2026. Kelly Grinnell, Finance Director, provided a summary of the 2026 budget process before the Truth-in-Taxation meeting tonight. She reviewed the items to be approved tonight, including the 2026 budget, 2026-2030 Capital Improvement Plan, and 2026 Property Tax Levy. She discussed the budgeting goals and constraints. She explained the relative size of the 2026 fund budgets and said that the largest budget was often for the capital project funds. She reviewed the proposed 2026 budgets summary by fund type. She explained the proposed 2026 general fund budget highlights, including the revenues and transfers in, expenditures and transfers out, and revenues and transfers in equal expenditures and transfers out. She discussed the general fund revenue comparison between 2025 and 2026 and said that the biggest change in revenues was for the City Council Minutes – December 15, 2025 4 property tax. She discussed the general fund expenditures and noted that Public Safety made up the largest category of expenditures. She reviewed the proposed 2026 Special Revenue Fund Budget Highlights, which included charitable gambling, cemetery, cable franchise, grants, and local affordable housing aid. She explained the proposed 2026-2030 Capital Improvement Plan and provided an overview of the CIP Overview Process, 2026 CIP Items, and 2027-2030 CIP Items. She reviewed the proposed 2026 Capital Projects Fund Budgets. She summarized the proposed 2026 vehicle and equipment fund budget highlights. She summarized the proposed 2026 capital facilities fund budget highlights. She summarized the proposed 2026 park development fund budget highlights. She summarized the proposed 2026 transportation infrastructure management fund budget highlights. She summarized the proposed 2026 pavement management plan fund budget highlights. She explained the negative fund balance and noted that street reconstruction was more expensive than other projects. The City knew they would have negative numbers, but the future street projects would not be as expensive. She explained the CIP projects from 2026 to 2030. She said that the Civic Campus Project was not included in the CIP, and the construction of the next phase of the project was underway. She stated that the Chanhassen Bluffs Community Center planning was underway. She reviewed the preliminary 2026 enterprise fund budgets, which include the water fund, sewer fund, and stormwater funds. She explained that the utility billing revenues were higher due to the planned rate increase, and the expenses were higher due to the utility portion of street reconstruction and sewer MCES. She discussed the capital outlay and utility improvements associated with street projects for the enterprise funds for 2026. She reviewed the Ehlers Study, which considered the City’s operating, capital, and debt service projections through 2032. They were able to review the fund needs and were able to decrease some of the funds' projected rate, but the stormwater rates would be higher for a bit longer. She compared the 2025 to 2026 Levy and said that the levy increase was dropping from 7.2 percent to 6.9 percent. She compared the all funds levy from 2026 to 2035 and said that there would be an increase in the projected levy for four years until 2031, when there would be a trend to decrease the levy. She commented that the city portion of the property tax bill is 22 percent. She explained the property tax impact on residential homes of different market values. She explained the property tax impact for commercial properties. She discussed the annual cost of city services for a $500,000 home in Chanhassen compared with other cities. Mayor Ryan opened the public hearing. Chris Mozina, 6670 Point Lake Lucy, asked about the total number of taxable properties and businesses and if it had increased exponentially over the last year. He asked if more people were being taxed and how that related to his tax rate. He stated that all parties, such as the city, county, and school, increased their taxes by approximately 15 percent. He asked what caused all of these parties to need to increase his taxes. Mayor Ryan closed the public hearing. Ms. Grinnell responded that the individual’s tax increase was because the value the county has for his property increased more than 4.5 percent. She said he could look at his value of last year City Council Minutes – December 15, 2025 5 and this year on his property tax bill, which would have increased his overall taxes. She stated that the new growth did help, but with new businesses, the State has a fiscal disparity program, and the city does not see the full benefit in their tax capacity. Mr. Mozina asked if properties saw their assessment value decrease by approximately ten percent to make up the difference. Ms. Grinnell explained that if they had any improvements, they would have impacted his assessment. Mayor Ryan invited the resident to follow up with Ms. Grinnell after the meeting to discuss the tax property bill and its direct impact. She thanked Ms. Grinnell for the clear communication throughout the process. Councilmember von Oven moved, Councilmember Kimber seconded that the Chanhassen City Council adopt a Resolution Approving the 2026 final budget, 2026-2030 Capital Improvement Plan, and final 2025 tax levy, collectible in 2026. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. None. COUNCIL PRESENTATIONS. Councilmember von Oven stated that there were reports about immigration officers convening at Avienda Parkway in Chanhassen. Two men had been trapped on the roof of the property by immigration officers. He felt like he needed to respond to the situation. When he arrived at the property, he found protestors, immigration officers, Carver County sheriff officers, and two men trapped on a roof. He stated that the protestors accused the Carver County sheriff officers of helping the immigration officers, but they were not there to assist the immigration officers. He addressed the crowd and thanked them for protesting peacefully, and said that the sheriff officers were not there to assist the immigration officers. He stated that transparency and protecting citizens’ rights are important, and residents want safe neighborhoods. He said he believed in legal immigration. He believed all law enforcement must operate with transparency. He stated that when law enforcement operates without coordination with the local law enforcement and any visible identification, the checks and balances disappear, and constitutional rights are at risk. He stated that democracy was not based on maybes, but on burdens of proof and checks and balances. He desired to protect the constitutional rights of the Chanhassen residents. He could not formally introduce an action tonight, and the Chanhassen City Council could not change State or Federal Law. The suggested actions he intends to bring before the body were to welcome legal immigration, respect diversity, and support lawful federal officers. He asked that they request advanced coordination from law enforcement officers and request clear identification from law enforcement officers. He asked that they clarify the role of the Carver County Sheriff’s Office in these situations to protect people’s rights, but not to assist in immigration enforcement. He hoped that the City Council would express its thoughts in a public debate. City Council Minutes – December 15, 2025 6 Mayor Ryan said that she worked to guarantee that the office was non-partisan. She stated she cared deeply about the people in the community and desired to uphold the Constitution of the United States and the Constitution of the State of Minnesota. She said she supported their law enforcement while they did their job. She discussed the value of impartiality. She said she would not participate in actions or commentary that would undermine her oath. She thanked the City staff for all their work throughout the year and their commitment to serving the community. ADMINISTRATIVE PRESENTATIONS. None. CORRESPONDENCE DISCUSSION. 1. Metropolitan Mosquito Control District Summary 2. Food Shelf Donations Councilmember Schubert moved, Councilmember Kimber seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:38 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk