City Manager Scott Neil presented the cuts after the council requested ways to reduce spending from the previously approved budget. "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 reductions targeted several areas: a portion of the Public Works Mill and Overlay program, a planned chatbot feature, a delay in revising Southdale District design guidelines, and reduced equipment replacement funds. Neil emphasized that the cuts were designed with resident impact in mind, working collaboratively with department heads across the city.

The council's action comes as the city faces steeper financial challenges ahead. Preliminary budget projections for 2026 and 2027 show what city officials described as "significant, unpalatable levy increases," prompting the council to begin early planning efforts and work sessions to better understand departmental services and spending needs.

In other business, the council heard a proposal from Abundance Properties to replace a single-family home at 5516 Vernon Avenue with four townhomes on a one-acre site. The council provided non-binding feedback, noting the project's potential to increase housing density and transit use along the busy street. The developer would need to request a comprehensive plan amendment, rezoning, and site plan review before the project could move forward.

The council also recognized Engineering Director Chad Milner as Engineer of the Year by the City Engineers Association. The city's Engineering Department received additional honors from the American Public Works Association's Minnesota chapter in November 2024, winning a co-winner award in the environmental category for the Morningside flood infrastructure project and an honorable mention in the transportation category for the Blake Road reconstruction project.