08-31-2026 CC WSCity Council Work Session Minutes – August 31, 2026
1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
August 31, 2026
Mayor Ryan called the work session to order at 6:00 P.M.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember
Kimber, Councilmember von Oven, Councilmember Schubert
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City
Engineer; Eric Maass, Community Development Director; Patrick Gavin, Kelly Grinnell, Finance
Director; Communications Manager; Jerry Ruegemer, Park & Recreation Director; Andrew Heger, Fire
Chief
PUBLIC PRESENT:
Review Early Draft of 2027 General Fund Budget and Levy
Kelly Grinnell, Finance Director, presented a balanced preliminary General Fund budget of approximately
$17.99 million, a 6.3% increase over 2026. The budget initially faced a roughly $200,000 deficit, which
staff addressed through departmental reductions and a proposed 5% increase in building permit fees (first
increase in five years). Wages and benefits are projected to increase 6.7% to approximately $9.85 million,
reflecting scheduled wage adjustments, four additional firefighters contingent on receiving a federal
SAFER grant and a budgeted 20% increase in health insurance premiums. Ms. Grinnell said the city’s
current health insurance provider has proposed a 39% increase, although the city is seeking competing
proposals before determining the final cost. Other increases include approximately $194,000 for the Carver
County Sheriff’s Office contract, additional street maintenance and expenses associated with operating the
new Civic Campus Park Building.
The preliminary property tax levy is currently projected to increase 7.1%. Because residential property
values increased more than commercial and industrial values, residential properties would generally
experience a larger percentage increase. For example, a home valued at approximately $650,000 would see
an estimated $102 annual increase in city property taxes under the current proposal.
City Council members expressed interest in continuing to look for reductions, with staff noting that
approximately $20,000 in additional cuts would bring the levy increase to 6.9%. At the Sept. 14 work
session, staff will provide updated health insurance information and a broader look at the total city tax and
utility impact on residents. The council is expected to set the preliminary levy in September, with final
budget and levy adoption scheduled for December.
Review Employee Survey Results
Matt Unmacht, Assistant City Manager, reviewed results from the city’s annual employee survey, which
gathered feedback from staff about their workplace experience, organizational culture and opportunities for
improvement. The city has conducted employee surveys since 2022 as part of its strategic focus on
operational excellence and its goal of being an employer of choice.
City Council Work Session Minutes – August 31, 2026
2
This year’s survey had an 87% participation rate. Employees gave the city an average satisfaction rating of
4.12 out of 5, while 91% reported being very satisfied, somewhat satisfied or neutral about Chanhassen as
a place to work. In addition, 85% said they had not applied for another job in the past six months, the
strongest result for that question since 2022.
Mr. Unmacht also highlighted strong trust and collaboration among coworkers, while 93% of respondents
rated communication from city leadership as excellent, good or OK. Open-ended responses identified
staffing and workload as areas of concern, along with interest in expanding the city’s use of artificial
intelligence to improve efficiency.
Leadership plans to prepare an FAQ addressing additional employee comments and explaining how
feedback is being considered. The City Council members praised the results and thanked employees and
department leaders for their work to maintain a positive workplace culture.
Mayor Ryan recessed the Work Session at 6:53 p.m.
Mayor Ryan reconvened the Work Session at 7:10 p.m.
Fire Department Planning Series Session 1: Fire Department Staffing and Structure
Andrew Heger, Fire Chief began a series of Fire Department planning discussions with an overview of
current staffing and challenges facing the department. The sessions are intended to establish a common
understanding of current operations before future decisions on staffing, facilities and service levels.
Chief Heger said the department’s five-year focus is to build more operational depth through full-time and
part-time staff. Future needs include an assistant chief of operations and a fire inspector. The long-term
goal is to have enough daily staffing to operate two pieces of apparatus.
City Council members also discussed the current fire station, built in the 1960s for a volunteer department
and now at capacity. A previous assessment estimated a remodel to better meet current staffing, health and
wellness needs could cost more than $24 million without addressing response-time limitations.
Future sessions will cover service delivery and response metrics; equipment, training and facility needs;
emergency medical services; and a final overall discussion.
Mayor Ryan adjourned the work session at 8:05 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk