2026 Budget Update
Information Item, no vote taken.
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
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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)
Unanimous approval
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
Motion carries (Unanimous)
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
Information Item, no vote taken.
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)
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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)
Motion carries (Unanimous)
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)
Motion carries (Unanimous)
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)
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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)
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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
Motion carries (Unanimous)
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.