MONDAY, AUGUST 11, 2025  
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD  

Summary   

5:30 P.M. - WORK SESSION (Fountain Conference Room) 

Preliminary 2026 Budget & Levy Discussion 

Council continued discussions on the preliminary 2026 General Fund budget and 2026 property tax levy. Building on June’s initial talks, the presentation covered wage and benefit projections — including a projected 3% cost-of-living adjustment, 3% step increases for eligible employees and a 15% rise in health insurance premiums — as well as costs tied to the new state paid family leave program. Other notable impacts included a 5.9% increase in the Sheriff’s contract, added election costs and the potential for the city to take over in-person absentee balloting in 2026. 

Council reviewed a proposal to offer in-person absentee voting at City Hall starting in 2026, at Carver County’s request. The option would serve only city residents, including those with Excelsior or Chaska mailing addresses within city limits and would supplement existing voting methods. 

Absentee voting would run for six weeks before Election Day plus four extra days for each election, requiring additional staff and election judges. Carver County would assist with training and some first-year costs, but the city would cover all expenses after 2026 — estimated at $31,000 in 2026 and $45,000 in 2028. Staff noted the service would be convenient for voters but add significant workload and ongoing costs. 

Council expressed its interest in making voting more accessible and convenient for residents, but indicated that, Carver County ought to make its financial support more definitive and robust . 

Preliminary budget figures project a 7.6% overall increase in wages and benefits and a 1.7% rise in non-wage expenditures compared to 2025. Total General Fund expenditures are estimated at $16.9 million, with revenues projected to match. The council also reviewed levy projections from last year’s Truth in Taxation process, showing a possible total levy of $16.47 million in 2026, up 7.2% from 2025, with further increases expected in subsequent years due to major projects like the Civic Campus and Chanhassen Bluffs Recreation Center. No significant changes to levy plans were proposed and budget adoption remains scheduled for Dec. 15. 

The preliminary numbers presented at Monday’s meeting indicated that it would result in a balanced budget for the city. 

Commercial Vehicle Parking Discussion 

The City Council continued its discussion on commercial vehicle parking, a topic first reviewed during the June 9, 2025 work session. At that meeting, Council asked staff to develop options for managing commercial vehicle parking on a broader, citywide basis rather than limiting changes to a single location such as Kerber Boulevard. 

Staff reviewed current regulations, which prohibit any vehicle from parking on a public street for more than 48 hours, as well as City Code restrictions on parking trucks with multiple axles in residential areas overnight, except when in an enclosed garage or for construction purposes. Kerber Boulevard, due to its collector street status, has not historically been considered part of a residential neighborhood. A citywide map of “no parking” zones was presented, along with a potential designated commercial vehicle parking area at Park Road and Park Drive, which is centrally located, wide enough for truck parking and surrounded by industrial zoning. 

Four potential options were outlined: 

1. Make no changes and only enforce sightline parking issues 

1. Classify Kerber Boulevard as residential and apply existing overnight truck restrictions 

1. Prohibit overnight commercial vehicle parking citywide 

1. Create a designated commercial vehicle parking zone along Park Road and Park Drive with no overnight parking allowed. 

Following its discussion, Council decided to select option 1 -- “Make no changes and only enforce sightline parking issues” -- and agreed to continue reevaluating this topic on an ongoing basis if additional concerns are raised. They also asked staff to look at where parking on Park Road and Park Drive would make sense. 

Market Boulevard Improvement Project Discussion  

The City Council revisited plans for the Market Boulevard Improvement Project, last discussed at the March 10, 2025 work session when Council decided to pause design work and delay most construction until 2027 to avoid conflicts with other major downtown projects. At the Aug. 11 meeting, staff outlined updated options in light of a June 30, 2026 deadline to encumber costs in order to use tax increment financing (TIF) from The Venue project. 

Council reviewed two primary paths: full reconstruction or a more simplified pavement rehabilitation. Both would involve some 2026 work, including a railroad crossing closure (about three weeks), intersection improvements at Market Boulevard and West 78th Street (about four weeks) and installation of a stormwater reuse system required by permitting and scheduled for next fall. A full reconstruction could follow the previously favored mini-roundabout/single lane median design, while rehabilitation could be completed entirely in 2026 without ruling out future corridor reconstruction. 

Council expressed interest in moving forward in the short term with requested upgrades to the 78th Street intersection, improvements to the railroad crossing at the southern end of Market Boulevard, enhancements to the pedestrian safety crossing near Market Square and enhancements to sidewalks and trails. 

While those upgrades would satisfy immediate needs, Council also said it wished to, at an upcoming meeting, take a more holistic look at Market Boulevard and general downtown traffic flow in order to make more significant and impactful decisions around traffic calming and pedestrian access. 

City staff will return at a future work session to propose a more fleshed out version of road upgrades to be tackled in the near future. 

7:00 P.M. CITY COUNCIL MEETING (City Council Chambers) 

Consent Agenda  

• The Council unanimously approved the following items on the Consent Agenda. They were: 

• Approve City Council Meeting Minutes dated July 28, 2025 

• Approve City Council Work Session Minutes dated July 28, 2025 

• Receive Park and Recreation Commission Minutes dated June 24, 2025 

• Approve Claims Paid dated August 11, 2025 

• Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 2166 Paisley Path. 

• City Facilities Cleaning Contract 

• Resolution 2025-XX and Ordinance XXX: Amending Chapter 10 Regulating Cannabis Retail Registration 

PUBLIC ANNOUNCEMENTS 
 
Invitation to Chanhassen Community Day at Chanhassen Recreation Center  

The City Council announced details for the upcoming Chanhassen Community Day at the Recreation Center, scheduled for Saturday, August 16. This free, family-friendly event will run from 9 a.m. to noon with free admission all day, offering activities such as try-it classes, a Community Shred Event, a Hockey Shot Speed Challenge, and a Story Walk. Attendees will also be able to meet local first responders and city staff during a Touch-a-Truck experience featuring vehicles from the Chanhassen Fire Department, Carver County Sheriff’s Office, Ridgeview Medical Center, Public Works and Parks and Recreation, along with a tour of the SW Prime trolley. The event is designed to showcase city programs and services while fostering community connection. 

VISITOR PRESENTATIONS  
 
SouthWest Transit Update - Erik Hansen 

The City Council heard an update from SouthWest Transit CEO Erik Hansen, who provided information on the agency’s current operations, recent initiatives, and future plans. In 2024, SouthWest Transit provided 537,877 rides, a 20.5% increase from the previous year, with 21% of SW Prime trips starting or ending in Chanhassen. Special Event Service saw particularly strong growth, rising 55% year-over-year with new service to events like Timberwolves games, the Renaissance Festival, and Pride. Looking ahead, plans include expanding SW Prime service areas and hours, increasing airport connections, enhancing special event offerings and launching a new website and rider app. Hansen also discussed ongoing advocacy for sustainable transit funding, noting the lack of a dedicated, long-term revenue sharing of the new transportation sales tax  for suburban transit providers and the agency’s efforts to address this through legislative action.