Special City Council Meeting – June 10, 2025

The Eagan City Council held a workshop meeting on June 10, 2025, beginning at 5:30 PM at the Eagan Municipal Center. The agenda included updates from the Minnesota Valley Transit Authority (MVTA), the Dakota County CDA Housing Needs Assessment, the joint meeting with the Sustainable Eagan Advisory Commission (SEAC) on the Climate Action Plan Work Plan, and the 2026-2027 General Fund Budget Update. Under other business, the council considered and approved rescinding City Administrator Diane Miller's resignation.

Public Comments & Testimony

• No public comments were made during the visitors-to-be-heard portion of the agenda.

Discussion Items

MVTA Update

• Luther Winters, CEO of MVTA, joined by Julia (public affairs director), provided an overview. MVTA operates 270 buses, 24 routes, 14 park-and-ride facilities, and 2 garages. Ridership increased by 10% from 2023 to 2024, with ongoing recovery post-pandemic; year-to-date April 2025 ridership is up 7.5% over 2024.
• Connect microtransit service (26 vehicles) was expanded to all 7 member cities in 2025. Eagan ridership grew 44% in 2024 and 48% in early 2025. Average daily rides are 529 (projected to reach 600). Average wait time is 21 minutes (goal: 20–25 minutes). 66% of riders use connect for work, 47% are people of color, 60% are women, and 1 in 10 have a disability. The cost per Uber/Lyft trip in the area is $22–$28, which is prohibitive for many riders.
• The state legislative session did not allocate the proposed $27 million per year in sales tax funding (current funding is ~$10 million). Without this allocation, MVTA expects service degradation and inability to expand routes (e.g., to the airport, Viking Lakes).
• Local service was reduced by 10% to reallocate resources to connect. Shelters and real-time information remain inadequate compared to core metro areas.

CDA Housing Needs Assessment

• Tony Schroeder (Executive Director, Dakota County CDA) and Patrick Bowen presented the countywide housing needs assessment with an Eagan-specific addendum.
• Eagan is expected to add at least 245 households over the next five years (2024–2029). The housing gap for rentals is 1,700 units; for for-sale, 3,200 units. The greatest need is at 30% area median income (AMI), with about 600 units needed. Vacancy rates are below healthy levels: multifamily rentals at 3%, non-conventional rentals at 0.5%, and for-sale at 0.3% (58 homes available as of June 10).
• 2,500 households in Eagan experience severe cost burden (>50% income on housing). 653 Eagan residents currently receive federal housing vouchers; the waiting list has 12,000 applicants. The federal voucher program faces a proposed 70% cut.
• Councilmember Sabina emphasized the need to prioritize the 30% AMI gap and set concrete goals, noting that the market will never address it without government intervention. Tony Schroeder responded that the CDA’s policy is to increase supply (building 1,000 affordable units over 10 years) and require voucher acceptance in all financed projects. City staff Jillian highlighted the Met Council forecast: by 2040, Eagan needs 2,000 total units, with half of affordable units at 30% AMI or below.

Joint Meeting with SEAC / Climate Action Plan Work Plan

• The Sustainable Eagan Advisory Commission (SEAC) presented their 2024-2025 accomplishments and proposed goals for 2026-2027. The education subcommittee ran a five-session Sustainable Eagan Academy (average 35 participants per session), including student presentations. The climate action subcommittee celebrated adoption of the Climate Action Plan (CAP) in April 2025.
• The CAP aims for a 55% reduction in community-wide greenhouse gas emissions by 2035 and net-zero by 2050. It includes 75 actions across 8 sectors, to be implemented in two-year phases. The first phase (2026-2027) includes 24 actions, with 7 already in progress in 2025. The work plan was presented for council feedback; formal adoption will come at a subsequent meeting.
• Councilmember Bachin raised questions about defining “clean energy” and suggested adding energy generation (e.g., data centers) to the land-use goals. The commission agreed to update definitions and work plans accordingly. Councilmember Sabina praised the long-term vision and front-loaded implementation.

2026-2027 General Fund Budget Update

• Assistant Finance Director Brent Boyles presented the early budget outlook. The 2026 estimated tax levy increase is 9% (including 1.9% for Eagan Community Center bonds), and 2027 is estimated at 5.9%. Key drivers: health insurance premiums (+10.5%), 3% COLA, market adjustments from a 2024 compensation study, paid family leave costs ($275K–$325K), public safety aid phase-in ($383,800), franchise fee revenue decline (planned $250K levy shift), and previously committed park/fleet increases.
• The 9% figure does not include any new departmental requests, which will be reviewed starting next week. Councilmembers expressed caution about adding further increases beyond 9%. A full proposed budget will be presented at the August workshop.

Other Business: Rescission of City Administrator's Resignation

• City Administrator Diane Miller announced the rescission of her resignation, which she had submitted the prior week. She stated that after considering an opportunity with ICMA, she realized her commitment to direct public service in Eagan. Council voted unanimously to accept the rescission, with members expressing appreciation for her courage and dedication. The motion carried without opposition.

Key Outcomes

• No formal votes were taken on the MVTA Update, CDA Housing Needs Assessment, or Climate Action Plan Work Plan; council provided feedback for future action (formal adoption of CAP implementation at next meeting).
• The council signaled support for the SEAC proposed goals and the first phase of CAP implementation, subject to formal approval at a future meeting.
• The council noted the 9% levy increase as a baseline and urged departments to limit new requests.
• Motion to rescind City Administrator Diane Miller's resignation – Carried unanimously (voice vote).