NewTue, Jun 9, 2026·Minneapolis, Minnesota·City Council

Intergovernmental Relations Committee Meeting – June 9, 2026

Discussion Breakdown

Intergovernmental Relations49%
Personnel Matters9%
Public Safety9%
Public Health7%
Cannabis Regulation7%
Affordable Housing5%
Transportation Safety5%
Engineering And Infrastructure4%
Miscellaneous3%
Homelessness2%

Summary

Intergovernmental Relations Committee Regular Meeting – June 9, 2026

The Intergovernmental Relations Committee met on Tuesday, June 9, 2026, with Chair Areen Chowdhury presiding. The committee approved a consent item granting local approval of a special law for a former seasonal employee’s PERS benefits and received a comprehensive presentation on state and federal legislative updates. The meeting concluded with a preview of the 2027 Policy Liaison Team (PLT) process.

Consent Calendar

  • Resolution – Local Approval of Special Law (PERS): Director Topinka presented a resolution to approve a special law correcting a PERS reporting error for a former seasonal public works employee (hired 2016–2022). The law, carried by Representative Jordan and included in the omnibus pensions bill, allows the employee to receive credit for 2016–2018. Councilmember Palmasano asked about preventing future errors; Director Topinka confirmed the issue was specific and administrative fixes are in place. The resolution passed unanimously.

Discussion Items

  • Federal Update (Lauren Olson):

    • Reconciliation bill: Senate approved a version funding DHS and CBP for 3.5 years; House expected to act this week. No ballot fund or anti-weaponization fund included.
    • FY2027 appropriations: House passed 2 of 12 bills; Senate focused on reconciliation. Key proposals: increased FEMA, doubled body camera funding ($40M), cuts to Department of Education (10%), $2B cut to ACA marketplace operations, and prohibitions on DEI spending and funding for NGOs supporting border crisis.
    • Earmarks: City requests include $3M for police records management, police recruitment internships, forensic lab funds, and pedestrian access/safety improvements.
    • Other federal actions: House voted on war powers resolution (Iran), approved Russia sanctions/Ukraine aid (Rep. Omar sole no vote). Acting Attorney General Todd Blanche stated no move on anti-weaponization fund. FISA Section 702 expires June 12; surface transportation and farm bills also pending.
  • State Legislative Update (Steve Huser, Indiria Falana):

    • Session context: First session since assassination of Speaker Hortman, Annunciation School tragedy, and Operation Metro Surge. Legislature remained tied 67-67; 91 chapters of law passed.
    • Operation Metro Surge relief: Senate passed small business relief ($100M forgivable loans) and rental assistance, but House did not act. $2M in city aid proposed but not included in final tax bill.
    • Property tax relief: $125M one-time increase (15%) to 2025 homestead credit refunds for homeowners earning <$143,000; automatic via Department of Revenue.
    • North Loop liquor/restaurant tax boundary expansion and rezoning signature repeal bills advanced but did not pass.
    • Affordable housing: $100M for housing infrastructure bonds; $40M one-time for family homeless prevention (from tax forfeiture settlement); $13M for supportive housing to fill federal gap.
    • Zoning/land use: Starter Homes Act (preemption) and private equity ownership limits did not pass.
    • Shelter fiscal cliff: Bridge to shelter legislation did not receive a hearing.
    • Energy/Environment: No energy omnibus; nuclear energy study funded; data center bills did not pass; battery recycling bill dropped; state energy codes grant bill did not pass.
    • HCMC stabilization: $205M approved ($50M by July 1, 2026); $500M hospital stabilization fund over five years.
    • Food shelves: $10M one-time.
    • Massage therapy: New statewide regulatory framework preempts local ordinances (effective July 1, 2028), but cities retain general business licensing and background checks.
    • Group homes: New law prohibits new facilities sharing property with existing ones; cities can request state property inspection authority.
    • Medicaid: Codified federal work requirements for adults without children, six-month renewals, cost-sharing, and reduced retroactive coverage (3 months to 1 month).
    • Capital Investment: City received $24.475M total: $12.36M for 36-inch water main, $8M for 13th Ave NE stormwater, $4M for Water Yard (East Phillips Urban Farm), $115,000 for ADA infrastructure. Also $1M for KMOJ radio station.
    • Tab fee holiday: One-time reduction to 2022 levels for 2027 registration; general fund backfill to protect highway user tax distribution.
    • Lead service line replacement: $15M in bond funds (private laterals likely ineligible).
    • Pensions: Omnibus bill created a new Para retirement plan for public safety telecommunicators (911), established a work group on duty disability, and expanded line-of-duty death benefits retroactive to Feb 2020 for certain cancers/communicable illnesses.
    • Transportation: No omnibus bill; autonomous vehicle legislation debated but not passed; bus/bike lane camera enforcement bill did not pass; e-bike definition update did not pass.
    • Community Safety: Supplemental spending bill included $905,000 for non-fatal shooting case clearance grants and $2M additional for Philando Castile training grants (total state amount unclear). City must apply. Also created an ARMER radio task force with a council appointment.
    • Gun safety: Senate passed comprehensive bill (SF 4067) including assault weapons ban, high-capacity magazine restrictions, ghost gun ban, etc. House did not take it up; DFL sit-in occurred. A statewide threat reporting system was included in the education omnibus.
    • Cannabis: Omnibus bill made changes to license types, local certification timelines, population caps, and compliance reporting.
  • Councilmember Questions:

    • Councilmember Palmasano asked about tab fee timing (applies to 2027 registration) and Philando Castile grant amounts (total state allocation, not per-city).
    • Council President Payne asked about ARMER task force appointment timeline; staff will follow up.

Key Outcomes

  • Consent item approved (resolution for special law) – unanimous.
  • Presentation filed – committee accepted the state and federal updates.
  • Next steps: 2027 PLT process begins June 2026; departments submit proposals; draft agenda presented to council in late October; adoption expected early December. Next legislative session starts January 12, 2027.
  • Chair Chowdhury thanked the IGR team and council members for advocacy, noting successes in capital investment, housing, and advancing conversations on ICE, data centers, and autonomous vehicles.

Meeting Transcript

Good morning and welcome. My name is Areen Chowdhury, and I'm the chair of the Intergovernmental Relations Committee. At this time, I'm going to call to order our regular meeting for Tuesday, June 9th, 2026. I want to offer a friendly reminder to all committee 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. I will now have the clerk call the roll to verify that we have a quorum. Councilmember Payne. Present. Warren is absent. Osman is absent. Schaefer? Present. Stevenson? Present. Chavez? Present. Chigte, present. Whiting. Present. Palmasano. Present. Vice Chair Rainville is absent. And Chair Chowdery. Present. There are eight members present. Let the record reflect that we have a quorum. I'll also remind my colleagues that we are using speaker management today, so please log in. Our first item is on consent. Um, but I am gonna have uh Director Topinka come and speak to this if that's all right. Uh it's a resolution granting a local approval of special law. This special law is related to the public employees retirement association, also known as Para. Welcome, Director Topinka. Thank you, Chair Chowdery and Council members. Um yes, this resolution before you is to approve a special law that the legislature passed as part of the omnibus pensions bill uh during the last session. Uh this special law is specifically for um to address a paraissure related to a former public works employee. Uh this employee was a seasonal employee that was hired in 2016, and then again each year through 2022. Um based on the way para accruals work, this employee should have been had deductions starting in 20 uh 16 through 2022 for his service, but the information was not consistently reported to Para. Um it was identified through an audit and um the city worked with Para to remedy as much as we could administratively, but the only way to ensure the employee could get the credit for 2016, 2017, and 2018 was through this special legislation. Um so we worked with Para and Representative Jordan carried the bill, it went through the pensions committee and was ultimately included in the pensions bill. So just to kind of get it across the finish line, we do need this final step. It's just in statute that council or the local governing body must approve a special law for it to go into effect. So if you do approve the resolution, we will then submit that information to the Secretary of State's office, and the um the special law will go into effect at that point, and then this employee can be eligible for the full uh para benefits that they're eligible for. Great. Thank you so much. Are there any questions or comments? I'll recognize Councilmember Palmasano. Thank you, madam chair. Director Dupinka, the way you describe this is that it is a special law that will benefit one person.