Enterprise and Labor Relations Committee Meeting - November 2, 2026

The Enterprise and Labor Relations Committee of the Minneapolis City Council met on November 2, 2026. Chair Linne Palmasano presided over the meeting, which included a consent calendar with four routine items and a detailed discussion of the annual property tax special assessment of delinquent utility charges.

Consent Calendar

• Item 1: Authorizing various master contracts with vendors for workplace investigation services.
• Item 2: Contract amendment with DRI consulting for management assessment services.
• Item 3: Legal settlement in the workers' compensation claim of Timothy Pixley.
• Item 4: Referring to staff the police department vehicle purchases ordinance.

The consent calendar was approved without discussion.

Discussion Item: 2026 Property Tax Special Assessment of Delinquent Utility Charges

Deputy CFO Jane DeSenza and Director Ali Salim Mohammed presented the annual request to transfer approximately $12 million in delinquent utility bills to Hennepin County for collection through the property tax process.

Key Data Points Presented:

• The delinquency rate has risen sharply from roughly 3% historically to 20%.
• The annual delinquency amount was about $3 million as recently as 2022.
• Individual delinquent amounts range from $10 to over $500,000. Chair Palmasano noted two specific downtown apartment buildings owed $500,000 and $363,000 respectively.
• 20% of customers are on auto-pay.
• A 5% one-time late fee is allowed by ordinance; the division is looking into adding an administrative fee.
• Staff reported that approximately 99.9% of assessed customers never contacted the city to discuss a payment plan, and roughly 98% of the delinquent amount is collected by the county the following year.

Committee Discussion and Positions:

• Chair Palmasano expressed significant concern over the $12 million figure and its growth, particularly during a budget crisis, distinguishing between those experiencing genuine hardship and those potentially treating unpaid bills as a zero-interest loan. She stressed the need to support residents unable to pay and inquired about policy options to improve collections without reverting to water shutoffs. Staff confirmed the 5% late fee is one-time and that they are exploring further administrative fees and referral options for low-income residents.
• Councilmember Chavez asked clarifying questions about the assessed amount (representing the past year) and the financial impact on the city (primarily a one-year cash flow lag which enterprise funds can currently absorb).
• Councilmember Schaefer questioned the rental utility billing process (it varies by landlord), identified specific large delinquencies from a landlord in their ward awaiting a court decision, and noted a deceased person appearing on the assessment list.
• Councilmember Vito raised concerns about the lack of prominent final notification to property owners before the assessment is sent to the county, noting that many residents ignore or do not receive mailed or emailed notices. She suggested a more visible public awareness campaign. Staff noted that extensive communications occur throughout the year but acknowledged the challenge of customer engagement. Councilmember Vito also discovered that several constituents she contacted had expired credit cards on auto-pay and were unaware their payments had stopped.

Key Outcomes

• Consent Calendar Approved: The committee unanimously approved all four items.
• Delinquent Utility Assessment Approved: The committee voted unanimously to forward the $12 million property tax special assessment to the full City Council for final approval at its next meeting.
• Staff Directives: The committee directed staff to explore enhanced notification strategies (with potential citywide campaigns), evaluate the feasibility of adding an administrative late fee, and strengthen connections to financial assistance resources for residents facing hardship.