05-19-2025 CC WS1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
May 19, 2025
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember
Kimber, Councilmember McDonald, Councilmember Schubert
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Patrick Gavin, Communications
Manager; Jerry Ruegemer, Parks Director; Eric Maass, Community Development Director; Kelly
Grinnell, Finance Director; Danielle Washburn, Assistant Finance Director; Jenny Potter, City
Clerk
PUBLIC PRESENT: Tyler See, Abdo; Allison Streich, Executive Director of the Carver
County Community Development Agency; Eric Johnson, Caver County; Dan Lonnes, Bolton
and Menk
2024 Audit Presentation
Kelly Grinnell, Finance Director, introduced Tyler See from Abdo Accounting. They presented
the 2024 Audit and Annual Comprehensive Financial Report. This annual audit, conducted by
the city’s independent auditor Abdo, is a key element of Chanhassen’s financial transparency and
accountability. The audit evaluates the city’s financial statements for accuracy, compliance, and
internal controls. This year’s presentation included updates on fund performance, debt levels and
long-term fiscal sustainability. The audit process is a continuation of standard financial oversight
and reflects the city’s strategic priority of financial sustainability.
Mr. See said that one recommendation for the city is to research and resolve old escrow accounts.
Councilmembers asked for clarification on the city’s water and stormwater funds, which are
lower than expected due to three primary factors: a $1 million interfund loan to the Stormwater
Fund from the Water Fund, significant capital spending on street reconstruction projects, and
reduced revenue from last year’s unusually wet summer. Despite the lower balance, projections
show that the fund will not go negative and should gradually recover over the next 10 years as
stormwater fees increase annually by 15%. Staff emphasized that stormwater is often the most
expensive and complex utility component of road projects due to strict permitting requirements.
While developments contribute some surface water management fees based on acreage, these are
limited and do not fully offset long-term stormwater costs. Council members suggested it may be
time to revisit the fee formula to ensure it is aligned with current needs, especially as
development continues. The City Council may consider workshopping future changes to
stormwater funding policies to ensure ongoing sustainability without overburdening developers.
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A recent windfall from the wetland bank sale was noted as a positive development that may help
stabilize rates.
Carver County CDA presentation on LAHA options
Allison Streich, Executive Director of the Carver County Community Development Agency,
presented to the City Council potential uses for Local Affordable Housing Aid (LAHA).
Chanhassen received $126,855 in LAHA funds in 2024 and expects a similar amount in 2025.
These funds come from a 0.25% metro-wide sales tax dedicated to supporting affordable housing
initiatives. To date, the city has not allocated or spent any of these funds. This was the Council’s
first formal discussion on how Chanhassen might use its LAHA allocation to support local
housing needs.
The Minnesota Department of Revenue defines a Qualified Housing Project as one that provides
emergency rental assistance, financial support to nonprofit affordable housing providers, or
funding for the development or rehabilitation of housing for low- to moderate-income
households, specifically, those earning up to 115% of the median income for homeownership
projects and up to 80% for rental projects.
The proposed LAHA funding supports three main areas: homeownership assistance, rehab
programs, and multifamily housing.
The council indicated that rehab and homeowners' assistance programs would likely make the
most sense in Chanhassen and agreed to discuss the topic in further detail at a later meeting.
Hwy 5 Project Update and Joint Powers Agreement (JPA) Review
Eric Johnson, Caver County, and Dan Lonnes, Bolton and Menk provided an overview of
planned improvements and outlined areas of coordination required between the city and county.
The City Council received an update on the Highway 5 Improvement Project and reviewed
elements of a forthcoming Joint Powers Agreement (JPA) with Carver County.
The next steps for the Highway 5 Improvement Project include finalizing two key agreements.
One is a Joint Powers Agreement (JPA) that defines cost-sharing methods and outlines each
party’s roles and responsibilities. The second is a cooperative agreement with MnDOT and
partner agencies to document responsibilities for costs and for perpetual maintenance, with a
recommendation to waive the formal municipal consent process.
The Chanhassen Trunk Highway 41 (TH 41) pedestrian underpass is a new possible addition at
W 78th St, which would provide a completed grade-separated crossing for pedestrians and
cyclists beneath TH 41, improving regional trail connectivity and safety as part of a broader
multi-agency transportation upgrade. The estimated total cost is $2.5 million, split evenly
between the city and county. The city’s estimated share is $1.25 million. Next steps for the
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project include drafting the underpass JPA by September 2025 and executing the cooperative
agreement in fall 2025.
The City Council asked for another follow-up work session to discuss this project in greater
detail.
Mayor Ryan adjourned the work session at 6:55 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk