Minneapolis City Council — Transcript
Monday, May 4, 2026
City Financial Health and General Fund Management
Police Department Overtime, Off-Duty Fees, and Recruitment
Council Dedicated Funds Implementation and Policy Adherence
Administrative FTE Additions and Transparency
Votes (6)
Approving the 2026 consolidated action plan budget adjustments
Dissent: None
Moved by Chair Chughtai [00:03:52] · Seconded by Unknown [00:03:53]
This was presented as a standard annual item on the consent agenda, with no specific policy debate or in-depth discussion noted.
Fourth Quarter Financial Status Report
Dissent: None
Moved by None · Seconded by None
The Finance Department presented the Q4 2025 financial status, highlighting a critical decrease in the general fund balance (down $68M in 2025) approaching its 17% minimum requirement, contrasting with a stable non-general fund. Key concerns included significant overspending by the Police ($17.6M) and Fire (~$7M) departments, unbudgeted settlement costs ($5.7M), and a $19M property tax shortfall. The 2026 forecast projects the general fund falling below the minimum, leading to a recommendation against using fund balance for future budget cycles.
Rollover of Unspent 2025 Appropriation
Dissent: None
Moved by Chair Chughtai [01:05:40] · Seconded by Unknown [01:05:40]
The Finance Department proposed a limited rollover of unspent 2025 appropriations, specifically excluding general fund balances due to its proximity to the minimum target. This decision contrasts with a larger general fund rollover in the previous year. Approved rollovers included public safety aid, council-mandated items, and non-general funds. The Controller indicated that general fund rollovers are unlikely in the near future, pending a rebuild of the fund's balance.
2026 Council Dedicated Funds
Dissent: Council Member Warsame, Council Member Stevenson, and Council Member Chavez voiced strong opposition to the delay in implementing the Police Off-Duty Fees.
Moved by None · Seconded by None
A report on the status of council earmarks revealed progress on health programs (opioid response, water safety), CPED initiatives (tenant organizing, emergency shelter), and Public Works projects (zero waste, sidewalk plowing). However, significant debate arose concerning CPED's 'Invest in Child Care Workers' earmark, where the department's use of existing resources instead of creating a new FTE was questioned as a deviation requiring a council vote. Strong criticism was also directed at the Police Department for delaying the implementation of off-duty fees until Q2 2027, citing a lack of 'political will' and highlighting the ongoing taxpayer subsidy.
Administrative FTE Add Memo Report
Dissent: None
Moved by None · Seconded by None
The Budget Manager presented the first quarterly report on administrative FTE additions, totaling 13 positions across Arts & Cultural Affairs, Health, IT, and Public Works. These positions were offset by either increased revenues or reductions in non-personnel budgets, ensuring budget neutrality. This new reporting mechanism is a result of updated financial policies aimed at providing greater transparency on staffing changes outside the regular annual budget process.
Police Overtime Expenses during Operation Metro Surge
Dissent: None
Moved by None · Seconded by None
Chief O'Hara and Deputy Chief Kluko detailed Operation Metro Surge as an unprecedented, complex emergency demanding full departmental mobilization, extended shifts, and significant overtime/standby pay to prevent further instability. The presentation defined different pay types and correlated high overtime use with critical incidents. This item, while presented separately, built upon earlier discussions regarding the Police Department's consistent overspending, the delayed implementation of off-duty fees (until Q2 2027), and debates over recruitment strategies, prompting council members to reiterate concerns about taxpayer burden and accountability for financial management.
Notable Quotes (17)
The general fund... is starting to approach its minimum balance requirements. So, really there's kind of a tale of two different two different situations in the city.
As we stand here today, we are meeting our minimum fund balance requirement, but there is in '25 a significant spend down with a trend that could possibly be impactful as we end '26.
Overtime is not one of those categories that we can inflate year to year. And so I think you can be expecting to hear more about that throughout the 2027-2028 biennial budget process.
As I guys I mentioned at the beginning, this this it's kind of a tale of two cities. Non-general fund, I think, is doing just fine. General fund, you know, does does need to be looked at.
I think it's highly unlikely that we'll be able to recommend any uses of fund balance in the coming budget cycle.
This year the finance officer decided to limit it to just public safety aid in the non-general fund... we felt it was prudent for the city to to not roll over the general fund balances.
I think it will require some sort of rebuild of the general fund balance before we can get back to that.
I think it's a really good lesson of earmarks are also falling under the same expectation of this this financial policy and that a change even if it means just still keeping it absorbed within your budget like that should be reflected in the approval process.
I still find to be unacceptable and it's very appalling that the Frey administration is refusing to implement this until at least the quarter or second quarter of 2027... this is absolutely a choice of political will.
my understanding is that as an enterprise we'll try to implement timekeeping measures as well as the technology... I'll take those concerns back and see what we can do to move things quicker.
It's not a matter of like there's a lack of resources out in the communities for us to enact these fees. There's been a lack of effort on our side to actually do the process to bring the appropriate tools and vendors along to actually save our taxpayers $1.4 million.
This reporting of admin adds quarterly to council was a change in financial policies... to provide additional transparency on these increases to department budget positions outside of the annual budget process.
Metro Surge was an emergency... one of the most complex and sustained operations the police department has had to endure and was truly unprecedented... The city of Minneapolis was on the precipice of having yet another incident that could push us off into the cycle that the city saw six years ago.
we didn't use the 0.5 standby time until Renee Good's murder. That was you know, the 7th of January. That's when we That's when we had to bring people in against their will.
if we wouldn't have had a decrease in recruiting budget for new officers... then those individuals would have already have come through academy and been vested, which would have then in turn reduced the number of overtime.
2019... the police department spent over $6 million in overtime, which I believe works out, and that was a fully staffed department.
I really feel like the the the bread and butter parts of recruitment and retention we have really put effort into this body to make happen and it notwithstanding contention... I don't think that there is a real correlation between us deciding not to do that half million dollars when there was already money left over and struggling with recruitment.
Ordinances & Resolutions (11)
A standard annual item for approval on the consent agenda.
Presentation on the city's financial performance through Q4 2025.
The final audited financial report for 2025, to be issued around the end of June.
Annual Financial Report for 2024, which received a certificate of excellence.
The policy set by the City Council that defines the 17% minimum general fund balance requirement.
Authorizing language for the rollover process, administered by the finance officer.
A 'receive and file' report detailing the status of council earmarks for 2026.
The resolution through which council dedicated funds are adopted.
Policy addressing the administrative addition of FTEs, requiring quarterly reporting to the council.
A report that maps out settlement agreement needs, referenced during discussion of unbudgeted settlement costs.
A system discussed for its ability to pull and analyze data on employee time worked, including overtime and off-duty hours.