Hennepin County — Transcript
Thursday, December 11, 2025
Story
Hennepin County approves $3.15 billion 2026 budget amid fiscal crisis
Financial Management and Budgeting
Public Safety and Justice System
Health and Human Services
Housing and Homelessness
Economic Development and Small Business Support
Environmental and Infrastructure Initiatives
Reparative Justice
Votes (19)
Henipin Highlights: 2025 Year in Review
Commissioners provided a comprehensive overview of 2025, detailing the county's response to fiscal, political, and operational challenges. Key achievements mentioned included responding to over 600 board action requests, a 31% reduction in opioid overdose deaths in 2024, the opening of the Youth Stabilization Center, housing 352 families, supporting over 4,000 entrepreneurs, and advancing major transportation and environmental initiatives. The board underscored its commitment to eliminating disparities and equitable service delivery.
Consent Agenda (9A to 9y)
Dissent: None
Moved by Commissioner Anderson [32:51] · Seconded by Commissioner Eden [32:54]
Commissioners highlighted several items from the consent agenda. Commissioner Anderson emphasized the importance of youth activities grants (9E) as a priority investment. Commissioner Connley pointed out the significance of exploring Ordinance 18 amendments for zero waste funding (9U) and the historic establishment of the Reparative Justice Research Task Force (9V). Commissioners Lundy and Green expressed cautious optimism regarding the approved Henipin Healthcare System Financial Plan (9T), acknowledging future challenges.
Amendment to an agreement with Ren Collective to provide complex legal communication services (10A)
Dissent: None
Moved by Chair Fernando [37:25] · Seconded by Unknown [37:27]
County Attorney Mary Morardi requested to return the item to staff, explaining her office's significant budget cuts and the unsustainability of such contracts while facing demands to hold 25 positions open. She criticized misinformation shared by a commissioner, which had negative repercussions for the Ren Collective and her office. Commissioners acknowledged the misinformation and shared concerns about county-wide budget pressures.
Agreement with the City of Minneapolis for waste delivery (11A)
Dissent: None
Moved by Chair Fernando [50:57] · Seconded by Commissioner Green [51:00]
The board approved a one-year agreement with the City of Minneapolis for waste delivery, which was a modification from the previously requested two-year term, based on the City Council's resolution. Staff confirmed plans to begin negotiations for a potential second year early in the future.
Direct comprehensive study of Henipin Healthcare Systems, Inc. governance (11B)
Dissent: None
Moved by Chair Fernando [52:43] · Seconded by Commissioner Gotell [52:45]
The board approved a resolution to conduct a comprehensive study of HCMC's governance, with a process report due by June 30, 2026. Commissioners noted the importance of evaluating current models and seeking more effective governance structures, especially given the dynamic and challenging healthcare environment and past concerns.
2026 Proposed Operating and Capital Budgets (11C)
Dissent: None
Moved by Commissioner Gotell [56:32] · Seconded by Commissioner Green [56:33]
The board approved the 2026 operating and capital budgets, totaling $3.15 billion with a $1.1 billion net tax levy. Discussions highlighted the extreme financial challenges, federal funding cuts, and property tax burden on residents. Commissioners praised staff for their proactive work and emphasized the need for new revenue sources, efficiency, consolidation, and accountability. There was a strong acknowledgment that future budgets will be even more difficult, requiring strategic prioritization of core county functions.
Award a contract to Dawn Construction for the juvenile detention center day room safety upgrades project (13A)
Dissent: None
Moved by Chair Fernando [1:21:40] · Seconded by Commissioner Connley [1:21:42]
The proposed $2.1 million contract for upgrades to the Juvenile Detention Center (JDC) day rooms was moved to be returned to staff. Commissioner Connley questioned the investment in a 'dilapidated' facility with a low number of youth, suggesting funds might be better allocated to more restorative spaces like the Youth Stabilization Center. Other commissioners supported pausing to holistically evaluate the JDC's future, considering cost per resident and alternative investment strategies, while ensuring critical safety and maintenance needs are still addressed.
Agreement with the Minnesota Department of Health for funding of North Point Health Grant for safe recovery site award (13B)
Dissent: None
Moved by Chair Fernando [1:27:36] · Seconded by Commissioner Lundy [1:27:38]
The board approved accepting a $1.625 million grant from the Minnesota Department of Health for North Point Health and Wellness. This funding will support harm reduction services, including syringe exchange and care coordination, for individuals actively using substances, contributing to the county's opioid reduction efforts.
2026 Henipin County Board Committee meeting calendar (13C)
Dissent: None
Moved by Chair Fernando [1:30:17] · Seconded by Commissioner Gotell [1:30:18]
The 2026 Henipin County Board Committee meeting calendar was approved. The chair noted an increased utilization of Thursday meetings to avoid conflicts with state-issued democracy events (like caucuses and voting days) and holidays. The calendar also incorporated an expanded number of county-sponsored events, including a new annual meeting for county superintendents.
Approval of the 2026 Henipin County Regional Rail Authority levy and budget (HCRRA 4A)
Dissent: None
Moved by Chair Green [1:39:27] · Seconded by Commissioner Fernando [1:39:30]
The Henipin County Regional Rail Authority (HCRRA) approved its 2026 levy of $34 million and a budget of $34.7 million. The budget supports operating, debt service, and capital projects related to regional rail, emphasizing transit investments that connect people to jobs, education, healthcare, and recreation. It also includes leveraging corridors for green space, stormwater mitigation, and tree planting.
Negotiate an agreement with the Minnesota Housing Finance Agency for the Minnesota City's Participation Program (HRA 4A)
Dissent: None
Moved by Unknown [1:43:24] · Seconded by Unknown [1:43:25]
The HRA authorized negotiation of the 2026 participation agreement for the Minnesota Cities Participation Program. This program enables Minnesota Housing to sell mortgage revenue bonds, providing below-market interest rate mortgage loans for low- and moderate-income first-time homebuyers. The program has helped 217 households in suburban Henipin County, demonstrating significant impact.
Negotiate an amendment to facility lease and management agreement with CHDC VA LLC for the Veterans and Community Housing Project (HRA 4B)
Dissent: None
Moved by Unknown [1:47:04] · Seconded by Unknown [1:47:05]
The HRA approved negotiating an amendment to an agreement with CHDC VA LLC (Trellis) for the Veterans and Community Housing Project. This amendment is to govern the management of capitalized reserves, ensuring proper financial oversight for this supportive housing property for veterans, which has been owned by the HRA since 2005.
Negotiate an agreement with the Minneapolis Foundation to establish and administer a small business employee hardship fund (HRA 4C)
Dissent: None
Moved by Unknown [1:49:55] · Seconded by Unknown [1:49:56]
The HRA authorized an agreement with the Minneapolis Foundation to create a collaborative employee hardship fund for small businesses and nonprofits in Henipin County, with an NTE of $75,000 for administrative costs. This fund adapts a model typically for larger businesses, making it accessible to smaller entities to support employee retention and provide financial safety nets. Commissioners clarified its county-wide availability and acknowledged its roots in Workforce Leadership Council efforts. One commissioner raised a concern about the county's resource allocation for grant management amidst budget pressures.
Negotiate an agreement with Affordable Housing Connections, Inc. to provide annual compliance monitoring services for affordable rental housing projects (HRA 4D)
Dissent: None
Moved by Unknown [2:00:54] · Seconded by Unknown [2:00:55]
The HRA approved an agreement with Affordable Housing Connections, Inc. for $250,000 to provide annual compliance monitoring for its growing portfolio of over 270 affordable rental housing properties (more than 12,000 units). This outsourcing strategy leverages external expertise and existing relationships to allow county staff to focus on risk monitoring and continuous improvement.
Negotiate an amendment to an agreement with the Corporation for Supportive Housing (HRA 4E)
Dissent: None
Moved by Unknown [2:03:59] · Seconded by Unknown [2:04:00]
The HRA approved an amendment to its agreement with the Corporation for Supportive Housing, extending the term to September 30, 2026, with no change to the NTE. The amendment focuses on providing additional training and technical assistance for supportive housing operations and stabilization of existing properties, in response to unique distresses observed in this sector of the affordable housing ecosystem.
Negotiate seven agreements for cohort-based small business programming (HRA 4F)
Dissent: None
Moved by Unknown [2:07:59] · Seconded by Unknown [2:08:00]
The HRA authorized seven agreements, totaling $612,500, to continue its cohort-based programs for small businesses, covering stages from startup to second-stage enterprises. The programs have consistently received positive feedback, with two contracts recently awarded to well-qualified local organizations through an open competitive process. Investment from peer counties also contributes to the funding.
Negotiate 33 Elevate Henipin advising agreements for small business consulting (HRA 4G)
Dissent: None
Moved by Unknown [2:11:13] · Seconded by Unknown [2:11:14]
The HRA approved 33 agreements, totaling $2.5 million, for Elevate Henipin business advising services in 2026. This network of qualified consultants provides expertise in ten distinct areas, aiming to serve 1,000 to 1,500 unique small businesses across the county. The program boasts a 98% customer satisfaction rate, underscoring the value and impact of the consulting services.
Consent to the issuance of bonds by the City of Oakdale, Minnesota to refund HA series 2015 bonds for Ebenezer assisted living (HRA 4H)
Dissent: None
Moved by Unknown [2:14:48] · Seconded by Unknown [2:14:49]
The HRA consented to the City of Oakdale issuing bonds to refinance the HRA's 2015 housing revenue bonds, which supported the renovation of York Gardens, a senior assisted living and memory care facility in Edina. This refinancing will benefit Ebenezer, the facility owner, and its residents, while allowing the satisfaction of the HRA's older bonds.
Approval of our 2026 Henipin County Housing and Redevelopment Authority levy and budget (HRA 4I)
Dissent: None
Moved by Chair Connley [2:17:42] · Seconded by Unknown [2:17:43]
The HRA approved its 2026 budget of $24.9 million with a $22.1 million tax levy, representing a 0% change from 2025. The budget prioritizes affordable housing (supportive, SRO, workforce), homeownership, and community/economic development, including transit-oriented communities and Elevate Henipin. Commissioners emphasized the HRA's role as a 'gap filler' in leveraging funds and urged improved, more proactive communication with municipalities about available grants and programs given rising financial pressures.
Notable Quotes (39)
Eliminating disparities and advancing opportunities for all who call Henipin County home, visit us, or work here.
In 2024, Henipin County saw 30 saw a 31% decrease in opioid overdose deaths from 2023. And much of this progress is thanks to our community partners and county programs.
One powerful example is the launch of our first in the nation county-led anti-displacement initiative with an additional $2 million investment already approved and moving forward.
We're choosing to say that supporting kids and teens is not an optional thing, but something that we are going to continue to fund um in good times and when it's challenging.
For two years, they have said that Henipin County needs to explore what reparations could look like, where Henipin County is responsible for the disparities that exist in our county...
It was in June of this year that uh we received the news like many in the public that uh there was a danger of it hospital closing uh this month. It is not closed. It will not be closed. Uh and it has a future.
The Ren Collective is a wonderful organization that has helped us with drafts and all of that. And it's really hurtful uh to see misinformation put out about them.
The idea of having to hold open 25 positions next year is really unsustainable for public safety. It really is.
I completely agree with you that it is not sustainable what we are being asked to do with the resources that we are being uh presented with.
Whereas the city of Minneapolis by resolution on December 11th, 2025 has requested a one-year waste delivery agreement for the period of January 1, 2026 through December 31, 2026.
I sort of felt like there was a verbal agreement on process be provided to the Hen County Board of Commissioners by June 30th 2026. So I'm feeling comfortable with this resolution.
We may have aged out of that old type of governance that we had before. So I'm looking forward to this process and seeing what staff come up with some of the ideas that may be more effective for us and especially in these times which are very different...
This board action includes the operating budget, capital budget, and administrator amendments. The board action today will result in a final net tax levy of $1.1 billion and a budget of $3.15 billion for 2026 with 9,763 full-time equivalent positions.
What keeps me optimistic though is 2026 is the year of seeking out new sources of revenue... continuing to do it with property tax is going to be unsustainable for us.
This is the easiest one because it's easy to cut empty positions. It's easy to cut programs that are underperforming. It's easy to cut cons uh things that were like, okay, this isn't maybe our ben. Well, next year we're not going to have the empty positions to cut.
Counties are the caregivers of governments. We're the primary government [snorts] mandated care for the vulnerable and counties provide essential services.
This project will update a number of elements including updates to the dayroom and office spaces in each of the three living mods. This project will also replace old and deteriorating acoustic panels in those spaces.
I would rather see $2 million or almost 2.1 million uh go into upgrades um to this space uh which I don't know where that is in conversation with uh folks that work on the capital improvements to the juvenile detention center, but I would rather see it go to something different.
I don't mind bringing it to staff and have to come back. I just if you look at the cost per resident, um I'm just cautionous as we talk about money today that uh 12 to 13 beds at about 20 million or 15 million if you extrapolate that over JDC.
This particular grant provides us the ability to continue to provide um services to those who are um actively using substances um in support of our syringe exchange uh care coordination um with our clinical and other wraparound supports.
We have increased our utilization of Thursday meetings... wanting to increase this board's practice of um meeting on that Thursday instead of that Tuesday.
I really appreciate the diligence which you approach the board calendar, which may not seem like a lot to the general public, but having those things on where we're not conflicting with things, not conflicting with holidays of all faiths.
These regional railroad transit investments continue our efforts which seek to eliminate disparities by connecting people to jobs, education, health care, and recreational activities as well as re leveraging the corridors and properties to maximize green space to mitigate storm water runoff and make progress towards achieving our million tree goal.
Through this program, Minnesota Housing sells mortgage revenue bonds on behalf of city and county housing authorities and uses the proceeds to support below market interest rate mortgage loans for low and moderate income first-time home buyers.
Just highlighting 217 households purchased their first home in suburban Henipin County. Just the stats on here. Um, and just knowing since this time that, you know, Henipin has started our own kind of home buying effort and so these are significant numbers and really really meaningful contribution.
The action being requested today is approval for an amendment to the lease to govern the management of the reserves associated with this important supportive housing property.
Essentially, what we're doing is we're taking a successful model that works well for larger businesses to support and retain their employees, and we're making it accessible and convenient for small businesses with reduced barriers and costs of entry.
Yes, it does. Um, are there any is it open to all businesses in Henipin County then or is there I I only mention this because working with the Minneapolis Foundation may give an impression that it's only available to Minneapolis businesses.
I think next year, and that's why I'm saying for next year is that we're going to have to look at things and ask questions about as we accept grants, does it mean that we are spending resources to fulfill our part of the grants and are those resources worth it?
Engaging affordable housing connections for our HR portfolio will leverage their expertise and their existing relationships with our same providers uh and allow our staff to focus on risk monitoring and continuous improvement.
As we've been monitoring the affordable housing ecosystem the last couple of years and listening to our partners, we've determined that supportive housing projects are experiencing unique distresses that are distinct from the the rest of the affordable housing ecosystem.
But I again the biggest concerns are what's happening at the federal level and the supportive housing cuts that we know are coming down and I'm concerned with so many different ones of these projects of how how stable will they really remain and where they're going to be just in a year's time.
The only notable change from last year uh is that we conducted an open and competitive process for two of the programs that had been led by national nonprofit organizations resulting in two contracts recommended here with extremely well-qualified local organizations.
These 33 agreements will enable us to provide our premier consulting services to small businesses throughout the county in 10 distinct areas of support including marketing, accounting and so on.
Our customer satisfaction rates are extremely high with 98% of businesses reporting they feel more confident after working with one of our consultants.
Staff recommend providing consent to Oakdale to refund the HRA bonds as the new bond issuance will benefit Ebenezer and its residents and allow for the satisfaction of our 2015 bonds.
Today's request seeks approval of the 2026 Housing and Redevelopment Authority budget of $24,938,959 with a final tax levy of 22,186,537. These budget and levy amounts are consistent with the board's action on September 25th of this year, and the levy amount reflects a 0% change from 2025.
And it's a gap filler. And so sometimes difference between a building getting done and not done um I think is sometimes this money from partners because that money from us can be leveraged at the state, can be used at the federal.
I think what we're kind of getting at is we need to be in a different relationship with our municipalities in this coming year for many, many reasons... really encouraging a kind of different relationship um building exercise with our municipalities.
Ordinances & Resolutions (13)
Potential amendments being explored as a funding source to accelerate zero waste implementation.
Housing investment that was protected against cuts at the state legislature.
Housing investment that was protected against cuts at the state legislature.
Positive changes seen in human services.
Plan developed by the county to guide investments in the transportation system.
Updated plan to guide investments in the county's transportation system.
Approved financial plan ensuring the future and mission of HCMC.
The approved comprehensive budget for Henipin County for the fiscal year 2026.
A new county-sponsored event added to the 2026 board calendar.
Program with Minnesota Housing Finance Agency for below-market interest rate mortgage loans.
Bonds issued by HCHRA for York Gardens, now being refunded by the City of Oakdale.
The approved budget for the Regional Rail Authority for 2026.
The approved budget for the Housing and Redevelopment Authority for 2026.