OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Minneapolis Budget Committee Meeting - October 27, 2025

City Council — Monday, October 27, 2025
BodyMinneapolis, Minnesota
SessionCity Council
DateMonday, October 27, 2025
StatusFILED
Video Record
0:00 / 2:05:34

Transcript — Verbatim
0:16

Good morning.

0:17

My name is Aisha Chugtai, and I'm the chair of the budget committee.

0:21

I'm going to call to order our adjourned meeting for Monday, October 27th, 2025.

0:27

Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation.

0:37

These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community.

0:45

Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast.

0:54

We ask all speakers to moderate the speed and clarity of their comments.

0:58

At this time, I will ask the clerk to call the roll so we can verify the presence of a quorum.

1:03

Councilmember Payne.

1:05

Present.

1:09

Present.

1:09

Vita.

1:10

Present.

1:11

Ellison is absent.

1:13

Osman is absent.

1:15

Cashman present.

1:18

Jenkins is absent.

1:20

Chavez.

1:21

Present.

1:22

Present.

1:22

Chowdry is absent.

1:24

Palmasano present.

1:26

Vice Chair Koske.

1:28

Present.

1:28

Chair Chucktai present.

1:30

That is eight members present.

1:32

Let the record reflect that we have a quorum.

1:34

I will also remind my colleagues that we will be using speaker management today.

1:38

So please make sure to sign in.

1:43

Today we have two presentations related to the mayor's recommended 2026 budget from the Climate Legacy Initiative and the Capital Budget.

1:51

I will first invite Deputy Health Commissioner Patrick Hanlin to begin the Climate Legacy Initiative presentation.

2:00

Welcome, sir.

2:04

Chair Chugtai, Council Members, Patrick Hanlon, Deputy Commissioner of Sustainability Healthy Homes and Environment in the Health Department.

2:11

Today I'll be going over our Climate Legacy Initiative 2026 recommended budget.

2:17

As a reminder, the climate legacy initiative is a major investment that was created by the mayor, passed by council as a first step of the city's climate equity plan.

2:24

The Climate Legacy Initiative is funded through a portion of the franchise fee.

2:29

This is the franchise fee is a local city-based tool that's been used to address climate change, and it's part of a community-led approach that came out of a series of city-based alternatives to municipalization of gas and electric utilities.

2:42

We have other items like the Clean Energy Partnership and other ways that we work with our utilities, but this is one of the tools that came out of some of those conversations.

2:51

These are the partners.

2:53

When I go through this whole list, this is a uh team uh effort uh by community members, community organizations, uh city enterprise staff, and there's probably two main partners not on here that are uh some of the most progressive utilities in the country with both Excel and Center Point that are key partners in this work.

3:14

The 2026 recommended climate legacy initiative budget.

3:18

Uh these are estimated allocations based on the mayor's recommended budget, uh, the allocation to the program area overall.

3:25

Uh we had tough cuts, as you all know, um, across the enterprise.

3:30

And uh for the most part, the climate legacy initiative, the buckets of funding that are laid out on the right hand side there have remained constant from 2025.

3:40

The allocations reflect our emphasis, the continued emphasis on equity savings for residents, so making sure that whatever projects that we're doing, people get savings, uh, financial savings, savings for small businesses, greenhouse gas reductions, of course, uh, climate sequestration and innovation.

3:58

The franchise fee funding supports uh on the on the right hand side.

4:02

We had $8.4 million of climate programming and greenhouse gas programming that was additionally funded by PCAR pollution control annual registration fees uh that got us back to close to that 10 million dollars we had because of the temperate weather conditions last year.

4:18

We had some less funding that came into the franchise fee than expected, uh but we are in that 10 million dollar range.

4:25

52% of the overall funding has gone to distressed communities, so that is south side green zones, north side green zones, any income qualified program uh properties that qualify for those programs, and then nonprofits that serve people in low-income situations.

4:40

The main buckets of the climate legacy initiative are weatherization, deep uh greenhouse gas reduction in workforce, urban forestry, the policy and coordination, outreach, charging infrastructure with our public works department, the administration uh to that is the um the base programming to keep uh to support a lot of this work, carbon sequestration, homegrown circular economy, and then zero waste initiatives.

5:08

I want to put this on here just as uh reminder of our franchise fee, um the franchise fee that was increased to support this work.

5:16

This is an example in the residential category of in that that middle is the franchise fee that was used to uh the average impact on the average homeowner uh that was used to fund a lot of this work.

5:31

On the right hand side is the estimated savings that come out of a lot of our greenhouse gas, uh, sorry, our weatherization uh programming for residential properties.

5:40

And then on the left hand side is the utility costs, the average utility cost that these homeowners face, and then that's that uh red increase was a 2022 rate increase.

5:50

There are two rate increases that are going on uh right now with both utilities.

5:54

I believe the uh Excel energy rate is up around 160 dollars uh on the average homeowner, and so I just want to lay that out.

6:03

And and there are nuances to that.

6:04

That is part of uh getting to uh carbon-free future as well as some of the increases that they have, but also uh AI and data center increases and costs of uh utility costs that are being placed on utility ratepayers.

6:20

Uh the first category I mentioned with what was weatherization and deep greenhouse gas reductions.

6:25

This is the single biggest use of the climate legacy initiative funding.

Discussion Breakdown — Share of Meeting
Public Works██████████████████████████████████████38%
Climate Policy████████████████████20%
Parks and Recreation███████████████15%
Budget Management███████████11%
Public Safety████4%
Procedural███3%
Engineering And Infrastructure███3%
Transportation Safety███3%
Economic Development█1%
Summary of Proceedings

Minneapolis Budget Committee Meeting - October 27, 2025

The Budget Committee convened on October 27, 2025, to review and discuss the Mayor's recommended 2026 budget, focusing heavily on the Climate Legacy Initiative and the Capital Improvement Plan (CIP). The meeting featured presentations from six departments covering climate action, capital projects, arts, municipal building maintenance, and transportation infrastructure. Council members raised questions regarding equity metrics, funding sources like value capture, specific neighborhood park access, and the potential for leveraging bonds for climate investments.

Consent Calendar

  • [No specific consent calendar routine approvals were listed in the transcript; items proceeded directly to public comment/Q&A or were filed after discussion.]

Public Comments & Testimony

  • Councilmember Cashman expressed concern that the Downtown West neighborhood, a residential area of 9,000 people, has received no park capital investments since 2017 and has no plan through 2030. He noted that while regional investments exist, neighborhood parks are lacking, and suggested utilizing unused surface parking lots in the theater district for green space.
  • Councilmember Cashman requested clarification on the specific capital projects funded by the 2% value capture source levied on downtown housing, inquiring about usage through 2031.
  • Councilmember Cashman asked Director Arvidson to elaborate on how the Park Board incorporates demographic changes and density increases into strategic planning for neighborhoods like Downtown West and the North Loop.
  • Councilmember Palmasano questioned the scope of the alley renovation program, clarifying whether it includes pothole patching, stormwater drain repairs, or full reconstruction, noting frequent resident complaints. He also inquired about the funding mechanism for street improvements at George Floyd Square.
  • Councilmember Payne asked Director Arvidson about planning to increase park access in the Como neighborhood, which faces limited space due to industrial and freeway boundaries, and noted the potential opportunity regarding the upcoming sale of Tuttle School.
  • Councilmember Cashman and Councilmember Payne raised the topic of whether the city should utilize the $9.5 million Climate Legacy Initiative appropriation for debt service on bonds to scale up investments, rather than using it for direct interventions.

Discussion Items

  • Climate Legacy Initiative (Patrick Hanlin, Deputy Health Commissioner):

    • Hanlin presented the 2026 recommended budget, noting the initiative is funded by the franchise fee and PCAR registration fees, totaling approximately $10 million.
    • 52% of funding is allocated to distressed communities (North Side Green Zone, South Side Green Zone, income-qualified properties).
    • 54% of funding goes specifically to weatherization and deep greenhouse gas reduction.
    • Hanlin emphasized the program's focus on equity, workforce development, urban forestry, and zero waste.
    • Councilmember Cashman praised the work and requested a follow-up memo on specific energy savings achieved through weatherization this year.

  • Capital Budget Overview (Liam O'Brien, Senior Budget Analyst):

    • O'Brien detailed the 2026 CIP, highlighting a 32% budget increase from 2025 to 2026.
    • Key drivers include $63 million for the Nicollet Avenue Bridge (BR 127) and $37 million in additional enterprise bonds for sewer infrastructure.
    • O'Brien noted that despite the budget growth, the estimated 2026 bond redemption levy was reduced by $1 million due to financial planning.
    • Councilmember Cashman asked for clarification on the 2% value capture source usage; O'Brien confirmed the funds are designated for transportation infrastructure and economic development in the streetcar corridor, specifically the Nicollet bridge and Metro Transit projects.

  • Municipal Building Commission Projects (Aaron Delaney, Director):

    • Delaney presented four joint City/County projects totaling over $7 million, with the City's share just over $3.8 million.
    • Projects include interior exterior improvements (Phase 5), heat exchanger/pump replacement, electrical bus duct replacement design, and fire alarm system replacement.
    • Delaney expressed that the current fire alarm system is functional but requires replacement for safety and compliance.

  • Public Art (Mary Altman, Public Arts Supervisor):

    • Altman detailed the Art in Public Places program (1.5% of net debt bond funding) and a special one-time request for $1.55 million for Upper Harbor Public Art.
    • Highlighted the upcoming dedication of the High Lake Mural, a 6,200-square-foot painted and mosaic mural, noting community engagement efforts.

  • Property Services & Facilities (Barbara O'Brien, Director):

    • Presented 11 capital projects aiming to support public safety, public works, and voter services.
    • Key requests included the replacement of Fire Station 11, the major renovation of the 4th Police Precinct (MPD 05), and the creation of the Minneapolis Democracy Center to consolidate elections services.
    • Discussed the $700,000 request for energy conservation (PSD 11) to aid net-zero goals by 2040.

  • Park and Recreation (Adam Arvidson, Director):

    • Arvidson explained the equity-driven selection process (NPP 20) and noted that 2026 is primarily dedicated to the North Commons recreation center.
    • Discussed the status of playground rehabilitation, noting the program is on track to be fully caught up by 2031.
    • Councilmember Payne and Councilmember Cashman discussed park gaps in the Como and Downtown West neighborhoods, respectively; Arvidson noted proposals for Gateway Park and a skate park along 2nd Avenue for future consideration.

  • Public Works (Kathleen Mayel & Jennifer Hager, Interim Directors):

    • Mayel outlined a $266 million construction budget, focusing on paving, traffic, and bridge repairs.
    • Discussed $36.8 million in federal grants for paving (2026-2029) and the 20-year streets funding plan requirements.
    • Jennifer Hager clarified that alley renovation programs (PBO06, PB063) address surface repairs and water flow but do not include full reconstruction unless underlying infrastructure fails.
    • Discussed the Safe Routes to School partnership with MPS and the funding status of improvements at George Floyd Square.

  • Debt and Finance (Alan Hoppe & Dave Wheeler):

    • Hoppe noted the city's peak debt was in 2004 ($1.2 billion) and current outstanding debt is approx. $1.251 billion, well below the $2.4 billion statutory limit (utilizing 14% of capacity).
    • Discussed the volatility of variable rate debt versus the stability of fixed-rate debt, noting the city maintains a conservative approach.

Key Outcomes

  • No formal votes were taken in this transcript; the committee concluded by voting to file the presentations for the record.
  • Director Hanlin committed to providing a memo to Councilmember Cashman regarding energy savings data from weatherization projects.
  • Manager Wheeler and Director Hoppe acknowledged the inquiry from Councilmembers regarding the use of franchise fee funds for bond debt service, stating they are open to further conversations.
  • Liam O'Brien confirmed that details regarding the 2% value capture usage (Nicollet Bridge and Transit projects) will be provided in an administrative memo.
  • Council President Payne formally requested the committee pursue a discussion on leveraging $9.5 million for bond debt service to scale climate investments, noting this is a longer-term vision outside the current budget process.
  • Councilmember Cashman requested continued discussion on the inclusion of Downtown West and Como neighborhoods in future park capital plans and expressed intent to advocate for utilizing parking lots for green space.

Meeting Transcript

Good morning. My name is Aisha Chugtai, and I'm the chair of the budget committee. I'm going to call to order our adjourned meeting for Monday, October 27th, 2025. Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation. These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community. Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast. We ask all speakers to moderate the speed and clarity of their comments. At this time, I will ask the clerk to call the roll so we can verify the presence of a quorum. Councilmember Payne. Present. Present. Vita. Present. Ellison is absent. Osman is absent. Cashman present. Jenkins is absent. Chavez. Present. Present. Chowdry is absent. Palmasano present. Vice Chair Koske. Present. Chair Chucktai present. That is eight members present. Let the record reflect that we have a quorum. I will also remind my colleagues that we will be using speaker management today. So please make sure to sign in. Today we have two presentations related to the mayor's recommended 2026 budget from the Climate Legacy Initiative and the Capital Budget. I will first invite Deputy Health Commissioner Patrick Hanlin to begin the Climate Legacy Initiative presentation. Welcome, sir. Chair Chugtai, Council Members, Patrick Hanlon, Deputy Commissioner of Sustainability Healthy Homes and Environment in the Health Department. Today I'll be going over our Climate Legacy Initiative 2026 recommended budget. As a reminder, the climate legacy initiative is a major investment that was created by the mayor, passed by council as a first step of the city's climate equity plan. The Climate Legacy Initiative is funded through a portion of the franchise fee. This is the franchise fee is a local city-based tool that's been used to address climate change, and it's part of a community-led approach that came out of a series of city-based alternatives to municipalization of gas and electric utilities. We have other items like the Clean Energy Partnership and other ways that we work with our utilities, but this is one of the tools that came out of some of those conversations. These are the partners. When I go through this whole list, this is a uh team uh effort uh by community members, community organizations, uh city enterprise staff, and there's probably two main partners not on here that are uh some of the most progressive utilities in the country with both Excel and Center Point that are key partners in this work. The 2026 recommended climate legacy initiative budget. Uh these are estimated allocations based on the mayor's recommended budget, uh, the allocation to the program area overall. Uh we had tough cuts, as you all know, um, across the enterprise. And uh for the most part, the climate legacy initiative, the buckets of funding that are laid out on the right hand side there have remained constant from 2025. The allocations reflect our emphasis, the continued emphasis on equity savings for residents, so making sure that whatever projects that we're doing, people get savings, uh, financial savings, savings for small businesses, greenhouse gas reductions, of course, uh, climate sequestration and innovation. The franchise fee funding supports uh on the on the right hand side. We had $8.4 million of climate programming and greenhouse gas programming that was additionally funded by PCAR pollution control annual registration fees uh that got us back to close to that 10 million dollars we had because of the temperate weather conditions last year. We had some less funding that came into the franchise fee than expected, uh but we are in that 10 million dollar range. 52% of the overall funding has gone to distressed communities, so that is south side green zones, north side green zones, any income qualified program uh properties that qualify for those programs, and then nonprofits that serve people in low-income situations. The main buckets of the climate legacy initiative are weatherization, deep uh greenhouse gas reduction in workforce, urban forestry, the policy and coordination, outreach, charging infrastructure with our public works department, the administration uh to that is the um the base programming to keep uh to support a lot of this work, carbon sequestration, homegrown circular economy, and then zero waste initiatives.

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