Minnetonka City Council — Transcript
Monday, November 17, 2025
City Manager Performance Review Process
2026 Proposed Budget and Financial Strategy
Votes (2)
City Manager Review Process
The discussion focused on updating the City Manager's annual performance review. HR presented a revised framework, streamlining evaluation competencies from many to five categories: Leadership Strategy and Results, Council Relations and Communication, Organizational Management and Staff Development, Community Engagement and Public Trust, and Financial Management and Stewardship. A new 4-point rating scale (Exceeds, Meets, Growth Opportunity, Needs Improvement) with specific definitions for each competency was proposed to enhance clarity and consistency. Council members expressed general support for the streamlined approach and clearer definitions but questioned their ability to thoroughly assess 'Organizational Management and Staff Development'. A proposal for directors to complete the evaluation first to provide additional context was well-received. The new form will be used in 2025, with an electronic system (NEOGV) planned for 2026.
2026 Budget Related Items (Proposed Budget, Utility Rates, Annual Cellar Antenna Issues Schedule, Grant Applications Update)
Mike Funk and Darren Nelson presented the proposed 2026 budget, totaling approximately $124 million across five fund categories: special revenue, general, debt, capital project (governmental), and enterprise. The general fund, highly dependent on property taxes (78%), allocates 46% of expenditures to public safety. The proposed levy increase of 7.87% is driven by several factors, including a 4.7% 'business as usual' increase (staffing COLA, health insurance, state-mandated Paid Family Medical Leave, paralegal position) and additional strategic investments. These investments include a 0.7% increase for the Ice Arena and Marsh subsidies, a 0.9% decrease due to capital improvement fund transfers, a 2.7% increase for Public Safety Master Plan initiatives (e.g., firefighters, Axon agreement, community engagement officer), and a 0.7% increase for future facility debt planning (Community Center, Fire Station 2). The presentation also detailed the 4-year non-union compensation plan, aiming for the 60th percentile of peer cities to ensure competitiveness and retain talent. Discussion included how state aid increases were offset by Axon recalculations and the temporary transfer of recreation program funding from the Cable TV Fund to the General Fund.
Notable Quotes (6)
So tonight um we are going to establish a shared understanding of the city manager review process. It's our third conversation around this topic and hopefully we're reaching really close to the finish line. Um we'll confirm competencies and performance areas to be assessed and align on rating definitions and expectations which came out of the city council retreat um back in July.
I think this is a better more focused on the job at hand approach and I do also only because I think it does make a difference seeing the explanations within the ratings will be really helpful I think as we try to give consistent feedback across the seven of us. That's really my my hope is that this lends to more concrete feedback rather than this wide chasm of responses.
And I I also think though that that the that our dealing with staff reflects on um the city manager's job to organize, you know, I mean, and so and how um so we do have a we like you were saying, we do have a certain perspective, you know, where we sit, but it's but also where we sit, we have um sort of a like a holistic view that that that we can we can understand.
So, I'll pause there at that 4.7% and because I think that's worth noting in that this is pretty much business as usual. It's taking into account again staffing in terms of compensation, benefits, our own inflationary costs here at the city, um the paid family medical leave, and then one new position. So it's really as we'd say if the city was doing nothing different other than adding that position we would be really around that 4 and a.5% levy increase.
And the point that I mean it's really important that we've done the work that we've done because one there is no free lunch. I mean you do have to catch up at some point and when you have to do a big jump in a year you wonder why you get a big levy increase. Well, it's when you when you you haven't been I don't want to say you've been asleep at the switch, but you've you haven't stayed you haven't kept pace and you're going to have to catch up at some point and that's expensive.
Um, for enterprise funds, we really like to try to focus and make it simple is looking at the cash balance of an enterprise fund because enterprise funds have depreciation. Depreciation is a non-cash item, but yet you expend money every year for capital outlay. Well, that capital outlay is a cash going out the door, but in reality, it's an asset. So, you you expense it and then you move it over to as an asset, but there's there's no cash associated with that. So try to make it kind of the easiest possible comparison between governmental funds using that available cash balances kind of helps with making that um connection on those there.
Ordinances & Resolutions (26)
The meeting's formal plan of topics, with an addendum discussed.
An online platform where agenda addendums and documents are accessible.
Documents mailed to residents, which often prompt phone calls related to the budget.
A platform for public engagement and comments, specifically mentioned for budget feedback.
The legal document governing the city manager's evaluation process, requiring joint development of criteria.
An electronic performance management system planned for full implementation in 2026.
A new policy outlining the purpose of employee evaluations.
The annual financial plan for the city of Minnetonka.
A long-term planning document that influences the budget and city manager competencies.
A long-term planning document guiding economic development.
A long-term planning document for capital projects, funded in part by property taxes and excess revenues.
A planning document considered in the city's long-term strategy.
A planning document addressing climate change within the city's operations.
A survey providing community and business input for budget decisions.
A strategic document outlining investments and staffing needs for police and fire services, a key budget driver.
A planning document for managing the city's natural resources.
A planning document for parks, open spaces, and trails.
A broad planning document guiding city development.
A planning document related to city infrastructure and buildings.
A state mandate effective January 1, 2026, impacting the city's budget.
A study conducted in May 2024 informing discussions on facility improvements.
Requests made to the state legislature for funding for specific city projects like the Marsh, Opus, and Fire Station 2.
A study by David Drown Associates to review internal equity and external competitiveness of city compensation.
Law requiring cities to evaluate jobs and ensure fair compensation.
Agreements setting wages and adjustments for unionized employees (Police, Sergeants, Local 49, Firefighters).
A 10-year agreement for public safety services impacting the 2026 budget.