Hennepin County — Transcript
Tuesday, July 28, 2026
Story
Hennepin County Charts Course Through Fiscal Headwinds, Intensifies 2027 Planning
Story
State Mandates Overhaul of Henepin Healthcare Systems Board
Youth Violence Intervention and Prevention (NextStep Program)
Housing Stability and Homelessness Prevention
Law Enforcement Services and Autotheft Prevention
Affordable and Supportive Housing Preservation
Votes (17)
2026 Budget Update
Dissent: N/A
Moved by N/A · Seconded by N/A
Joe Matthews, CFO, provided the fourth update on the 2026 budget, noting substantial challenges continuing into 2027. Key points included 232 fewer budgeted FTEs and 311.5 fewer hired FTEs compared to the prior year, holding expenses below budget, and significant federal impacts like the loss of SNAP administrative revenue ($8M annual), $107.7M of federal funding under protective orders, cancellation of a teenage pregnancy prevention program grant ($536k unexpended), anticipated SNAP error rate cuts, HUD funding cuts ($12M impacting partners), and Medicaid losses at county clinics ($27M) and HCMC ($1.7B from HR1). The county is implementing strategies like hiring management (strategic, not a freeze), contract/RFP review, and capital review. Future planning with HHS is ongoing, including a state task force on its ownership. Planning for 2027 involves aligning departmental cost reductions with budget requests. The preliminary discussion on 2027 tax base and levy scenarios is set for August, with the proposed budget by Administrator Wetland in September.
Negotiate Two Lease Agreements for Cedar River Opportunity Center and Amendment Three to Lease Agreement for North Point Health and Wellness Center
Dissent: N/A
Moved by Unknown [0:23:40] · Seconded by Unknown [0:23:40]
These were presented as standard, routine items concerning rental space for two key community centers. Item 3A ratified permits and agreements. Item 3B negotiated leases for the Cedar River Opportunity Center (5151 15th Avenue South, Minneapolis) from 2027-2032. Item 3C negotiated an amendment to the lease for North Point Health and Wellness Center (800 West Broadway, Minneapolis) from 2027-2032 with a first gross rent of $61,762.
Agreement with the City of Maple Grove for landscaping services at the Maple Grove Library
Dissent: N/A
Moved by Unknown [0:24:55] · Seconded by Unknown [0:24:55]
A routine agreement for landscaping services at the Maple Grove Library from April 1, 2026, through March 31, 2029, not to exceed $71,090.
Establish a 2027 Premium Rate for the Self-Insured Dental Care Plan
Dissent: N/A
Moved by Unknown [0:25:35] · Seconded by Unknown [0:25:35]
A routine item to establish the 2027 premium rate for the self-insured dental care plan applicable to employees, eligible dependents, and retirees. An attachment with the rates was provided.
Henepin County Youth Activities Grants (Spring 2026)
Dissent: N/A
Moved by Unknown [0:26:40] · Seconded by Unknown [0:26:40]
Jennifer Yang, Director of Grants Management and Administration, presented recommendations for spring 2026 youth activities grants totaling $1,286,919 across four initiatives: Arts & Music (9 awards, $146k), Equipment (11 awards, $101k), Play Areas (3 awards, $900k), and Lifeguard Services (3 awards, $139k). These grants are estimated to benefit over 30,000 children. Commissioner Lundy highlighted the value of lifeguard training for life-saving skills. Commissioner Eden raised a concern about the future funding for play area grants, which come from the ballpark sales tax, not renewed, and requested an analysis of when funding might run out, emphasizing communication with cities that rely on these funds. Commissioner Fernando echoed this, noting the grants help offset property tax burdens for local governments.
Agreement with KPC Staffing, Inc. (doing business as KP Companies) for Reconstitution of Henepin Healthcare Systems, Inc. Board
Dissent: N/A
Moved by Unknown [0:33:10] · Seconded by Unknown [0:33:10]
The item approved an agreement with KP Companies for consulting services to recruit, vet, and recommend candidates for the reconstituted HHS corporate board, as mandated by the 2026 Minnesota legislature. The contract is from August 4, 2026, through December 31, 2027, not to exceed $125,000 plus expenses. Commissioner Fernando requested public feedback opportunities for residents and community members in the process. Commissioner Lundy emphasized recruiting board members who understand and are committed to HHS's role as a safety net hospital. Commissioner Eden stressed learning from past mistakes and amending bylaws to prevent a 'toxic working environment' and create a different culture. Commissioners also called for codified processes for future recruitment and strong oversight on criteria.
Presentation on the NextStep Program
Dissent: N/A
Moved by N/A · Seconded by N/A
Control Galloway, Director, and Larry Burgess, School Intervention Supervisor, presented on NextStep, the state's only hospital-based violence intervention and prevention program. It supports gun violence, stabbing, and community violence survivors at North Memorial, HCMC, Abbott Northwestern, and Children's Minnesota. The program includes hospital responders to rehumanize patients, connect families, and assess needs; community follow-up for 1-1.5 years providing wraparound services (financial, relocation, job training); and mental health groups (Harriet initiative). Started in 2014, it expanded from youth to all ages and into schools in response to broader community violence impacts. Larry Burgess detailed school interventions, offering one-on-one and group support focusing on purpose, resilience, grief, and conflict resolution, also connecting with families. Commissioners praised the program as a vital public health intervention, highlighting its 'golden moment' of intervention, importance for youth (especially with changing laws regarding juvenile offenders), and the need for broader funding and support for such services.
Amendment to an Agreement with the Minnesota Department of Health to Provide Funding to North Point Health and Wellness (FQHC Subsidy Grant Program)
Dissent: N/A
Moved by Unknown [0:54:55] · Seconded by Unknown [0:54:55]
This item approved an R1 for an amendment increasing the receivable amount by $526,240, for a new total of over $1.8 million, for North Point Health and Wellness's FQHC subsidy grant program, effective January 1 to December 31, 2026. CEO Kimberly Spates noted that these additional funds would support individuals regardless of their ability to pay, expand school-based clinic services, and address infrastructure. Commissioner Fernando expressed gratitude for the state's partnership and North Point's diligent service, highlighting the program's strong community connection and its role as a public health intervention.
Amendment Five to an Agreement with Forensic and Telemental Health Services LLC
Dissent: N/A
Moved by Unknown [0:58:30] · Seconded by Unknown [0:58:30]
This item approved an amendment to extend the end date to August 31, 2027, and increase the Not-to-Exceed (NTE) amount by $30,000 for a new total NTE of $148,000. This agreement is for the provision of peer-review consulting services and intensive community treatment.
Human Services and Public Health Resolution (including contracts and amendments)
Dissent: N/A
Moved by Unknown [1:00:20] · Seconded by Unknown [1:00:20]
This was part of a block approval of three routine human services items. The specific details of the resolution package (Board Report 2609) were referenced as being in the packet.
Amendment to an Agreement with the Minnesota Department of Human Services (Transition to Community Service)
Dissent: N/A
Moved by Unknown [1:00:20] · Seconded by Unknown [1:00:20]
This item, approved as part of a block, extended the end date of the agreement to December 31, 2026, and increased the receivable amount by $275,000 for a new total of $2,092,500 for the provision of transportation or transition to community services.
Amendment to an Agreement with the Minnesota Housing Finance Agency for the Family Homelessness Prevention and Assistance Program (FHPAP)
Dissent: N/A
Moved by Unknown [1:00:20] · Seconded by Unknown [1:00:20]
This item, with an R1 amendment, authorized increasing the receivable amount by $11 million for a new total of $19,075,000 to provide funds for homelessness prevention and rapid rehousing services from October 1, 2025, through September 30, 2027. It also authorized the addition of nine grant-funded FTEs and a supplemental appropriation of $4,871,600 to the health budget for housing stability. Commissioner Fernando reiterated concerns that service delivery costs are increasing, potentially creating a gap between funding received and actual costs, and emphasized monitoring these to balance resident needs with organizational requirements. Julia Wellie from Housing Stability confirmed these were one-time funds from the legislature in response to Operation Metro Surge and that the nine FTEs would be strategically placed within the housing prevention team and funded through September 2027.
Amendment to Agreement with Fall Psychological to provide licensed psychological assessments and wellness services
Dissent: N/A
Moved by Unknown [1:07:05] · Seconded by Unknown [1:07:05]
Approved as part of a block of routine law, safety, and justice items. The amendment extends the end date to May 31, 2028, and increases the not-to-exceed amount by $198,000 for a new total of $448,000.
Joint Powers Agreement (JPA) with the Minnesota State Agricultural Society to provide law enforcement services at the Minnesota State Fair
Dissent: N/A
Moved by Unknown [1:07:05] · Seconded by Unknown [1:07:05]
Approved as part of a block of routine law, safety, and justice items. The agreement covers law enforcement services at the Minnesota State Fair from August 27 to September 8, 2026. Commissioner Fernando thanked for prior review and expressed satisfaction with the JPA, while also seeking greater consistency regarding JPAs with other law enforcement agencies like MPD. Commissioner Eden shared trivia that there are typically 65 JPAs for law enforcement services at the State Fair.
Agreement with the Minnesota Department of Public Safety (Provision of Investigative Services related to the Prevention of Autotheft Crimes)
Dissent: N/A
Moved by Unknown [1:07:05] · Seconded by Unknown [1:07:05]
Approved as part of a block of routine law, safety, and justice items. This agreement covers investigative services for autotheft crimes from July 1, 2026, to June 30, 2029, with a receivable of $1,545,000. Chief Enderline confirmed the funding primarily supports two sheriff's office detectives and one each for partner cities Edina, Minnetonka, and St. Louis Park. Commissioner Lundy requested a memo on autotheft crimes by city and clearance rates, noting that a small group of individuals often commit these crimes and improved clearance rates could significantly reduce numbers. Commissioner Connley seconded the request for data and inquired about task forces with other cities, such as Minneapolis.
Negotiate various 2026 ERF grant agreements (total combined not to exceed of just under $2 million) and Negotiate ERF grant agreement with Minihaha Creek WHED district
Dissent: N/A
Moved by Unknown [1:16:30] · Seconded by Unknown [1:16:30]
This item approved negotiating various 2026 ERF (Environmental Response Fund) grant agreements totaling just under $2 million, and specifically an ERF grant agreement with the Minnehaha Creek Watershed District for costs incurred from August 2, 2022, through March 1, 2028, not to exceed $285,457. These were presented as routine cleanup grants.
Terminate and Forgive a 2002 AHIF Agreement with RS Eden for Lindquist Apartments
Dissent: N/A
Moved by Unknown [1:21:05] · Seconded by Unknown [1:21:05]
This item approved the termination and forgiveness of a 2002 AHIF (Affordable Housing Incentive Fund) agreement with RS Eden for Lindquist Apartments in Minneapolis. Abby Lucen presented, explaining that this action is necessary to allow for renovation of the existing supportive housing property (serving youth) and extend its affordability for an additional 50 years. The project also received a recent $1 million Supportive Housing Strategy award from the Henepin County HRA. Commissioner Fernando highlighted the importance of extending affordability and stability for community providers and encouraged similar actions and jurisdictional conversations to alleviate property tax burdens while maintaining services.
Notable Quotes (20)
Our goal is not to, you know, completely flatten that line out, but we are monitoring to make sure that we are going to try to underspend our 2026 budget knowing that we have a number of challenges and headwinds coming our way with losses of federal funds and other external factors.
This isn't that um we're in a position where we overspent for several years and now we're trying to rectify the situation. This is a situation where the federal government is intentionally disinvesting from counties and putting us in just impossible situations.
We will not shrink our way into the vision that our residents deserve. There needs to be a way in which we more broadly either offer accountability to where how we can receive the tax funds that we've uh put in um or you know how we as motans determine how we care for our neighbor and that has to come by way of a revenue source somewhere.
The recommended grant awards will allow an estimate of over 30,000 children of all abilities and backgrounds to benefit from increased and improved access and opportunity to youth activities.
At what point will we run out of funding for this and do we have an idea of what that looks like? You don't have to know right now, but I do think that we should, you know, make sure we're communicating that with the cities because these are really something where cities have relied on them and we didn't renew the ballpark sales tax and that's where this money is coming from.
As part of the 2026 session, the Minnesota legislature enacted a health and human services bill which included a provision requiring the Henepin County Board to reconstitute the HHS corporate board with qualified members and to transition governance to the reconstituted HHS board by January 15th of 2027.
My request is to ensure that there's some amount of public feedback opportunity or a mechanism for residents, workers, community members to be able to offer um a direct line.
We cannot create the same culture that was happening with the past boards. It wasn't working and it was almost a toxic working environment. Now if that was happening here at the county we would not allow that to happen.
We call it the golden moment. It's just reminding people what they wanted to be before they got involved in a risky behavior. What were you what were you doing before you got in a risky behavior?
The good thing about it also is that we're not just connecting with the youth, we're also able to pull their families in also. So, yes, their youth is benefiting, but we're also reaching out to their families and providing resources um and figuring out whatever it is uh that they may need.
This program is the strongest public health intervention to gun violence in the state kind of period. ... there are many of us that are seeking to work hard and fight hard to establish the funding source needed to ensure that this type of work is everywhere.
This particular item is a routine item. Uh we get the the FQAC subsidy on an annual basis. However, this year we um received a little more almost a little over half a million dollars um additional um given the current situation um in the healthcare landscape. And so this item um is really technical to receive those dollars, we're using them to just continue to support um individuals who come to North Point regardless of their ability to pay. um expanding some of our services within our schools, our school-based clinics, as well as taking care of some infrastructure.
When we are delivering services that cost more than what we are receiving, the more people we serve, which is our objective, means that uh that potential gap also grows. So that there's no change in operations or and whatnot. Just given the totality of our conversations today in this boardroom, ensuring that we are um a you know kind of just monitoring what is the cost of a service and the receivable so that uh we can continue to maintain what residents need and that we are able to balance that well with um what workers and the organization needs.
Um, these funds, we're so excited to have them. Uh, they're onetime funding that came in uh from the legislature in response to the housing related needs u from Operation Metro Surge. They will allow us to um uh prevent evictions for 2,000 households.
I want I want I I seek greater consistency regarding JPA and partnerships with law enforcement agencies.
It's 65. I know. So anyways, nerd facts and uh fun fact for the day.
I'd be interested in autotheft crimes by city. Um also I'm very interested in clearance rates. Um, and the reason I ask is I had a number of chiefs, uh, obviously the county sheriff's office has really talked about that that you've got a small group people actually commit these crimes and if you're not clearing a case and getting some of those that small group, they just keep going.
Minneapolis does have an autotheft unit. They've recently stood up. I believe they have two detectives assigned to that. Two detectives assigned to that. We work in collaboration with them similarly to like their gun investigations unit, but they are not embedded in our autotheft task force.
This project meets our highest priority when considering loan servicing requests, which is to ensure the affordability continues. The Henipin County HR has also provided uh a recent supportive housing strategy award of 1 million to help the project address capital needs and secure the 50 years of affordability. So essentially, AHIFF terminates supportive housing strategy continues.
As we've all heard all day and our our residents um do need the collective property tax burden to be alleviated a little bit while maintaining services. Right? That's what we've been saying all year. And so if there are ideas that um you know we might have for other jurisdictions, just really encouraging that those conversations are taking place on the jurisdictional level.
Ordinances & Resolutions (16)
County's operational budget for the current year, subject to updates and challenges
Upcoming county budget, with planning underway for sustainability
Federal bill with significant estimated impact on Medicaid and Henepin Healthcare System
Federal grant that has been cancelled, causing a funding shortfall
Loss of federal administrative revenue for the Supplemental Nutrition Assistance Program
County program awarding grants for arts and music, equipment, play areas, and lifeguard services
Agreement to provide funding to North Point Health and Wellness (FQHC subsidy)
Agreement for peer-review consulting and intensive community treatment
Human Services and Public Health resolution including contracts and amendments
Agreement for transition to community service provision
Program providing funds for homelessness prevention and rapid rehousing services, funded by MN Housing Finance Agency
Agreement to provide licensed psychological assessments and wellness services
Agreement to provide law enforcement services at the Minnesota State Fair
Agreement for investigative services related to prevention of autotheft crimes
Agreement to be terminated to allow for renovation and extended affordability for supportive housing
Recent county funding to help Lindquist Apartments address capital needs and secure 50 years of affordability