The Edina City Council unanimously approved a spending reduction package in February designed to trim $545,000 from the 2025 budget while minimizing impact on residents. The move comes as city leaders brace for potentially steep property tax increases in the coming years.

City Manager Scott Neil worked with department heads across police, fire, public works, parks, and other city services to identify where spending could be reduced with the least disruption to residents. The council reviewed the package in advance and approved it unanimously at its February 4th meeting, finalizing a 2025 budget of $47.3 million with an 8.44% property tax levy increase.

"I was able to work with the Department directors in our police and fire and public works and parks and all of our other directors to find areas where we could reduce spending that would have the least amount of negative impact on our residents," Neil said.

The cuts included eliminating a chatbot feature on the city website, delaying a revision to design guidelines in the Southdale District, reducing equipment replacement funding, and removing a half-mile mill and overlay program from Public Works. While modest in scope, the reductions reflect the city's effort to manage costs during a period of fiscal pressure.

Looking ahead, city officials are preparing for a more significant challenge. Early projections for 2026-2027 show that maintaining current service levels and planned projects would require a substantial property tax increase that council members have deemed unacceptable. The Finance Department is taking a proactive approach, holding work sessions with council members to explain departmental services and budget drivers. A budget retreat is planned for March to discuss long-range financial strategy and explore options for reducing future levy increases. "The finance department is leading the effort to get ahead in the budget planning process to examine all options for reducing those projections," according to city officials.