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Eagan reviews 2025 enterprise and special-revenue budgets; council signals support for utility rate adjustments and sustainability staffing
Summary
Finance staff presented 2025 enterprise and special revenue budget proposals including public utilities rate adjustments, potential bond issuance for capital needs, sustainability staffing (proposed 30-hour/week position) and opioid-settlement funds. Council gave policy-level support in several areas and asked staff to return with formal items for Dec. 3 action.
Finance staff walked the council through the 2025 enterprise and special revenue budget preview, seeking policy guidance ahead of formal action at the Dec. 3 council meeting.
Josh (finance staff) highlighted the public utilities fund as the largest enterprise portfolio, noting aging infrastructure, a possible bond issuance of roughly $6.7 million for projects spanning 2024–25, and the need for rate adjustments to balance operating and capital needs. Council members expressed general agreement that proposed rate adjustments were necessary to maintain water and sewer services and fund capital replacement.
Recreation enterprise funds were reviewed: the Civic Arena’s operating revenues closely match costs but capital needs have historically required occasional general-fund support; Cascade Bay showed improvement with projected operating gains; and the Eagan Community Center is projected to benefit from reinvestment and tenant lease revenue (though staff noted antenna-lease revenue is declining due to carrier consolidation).
On sustainability, staff outlined the city’s Climate Action Plan goal to reduce greenhouse gas emissions by more than 50% over the next decade and proposed a 30-hour/week sustainability position to support outreach, grant applications, a proposed energy-incentive program and municipal facility audits. Council debated whether to begin with part-time capacity and evaluate later; the majority supported the part-time hire (30 hrs/week) with future reassessment.
Staff also reviewed the tree mitigation fund (cash declining; ongoing EAB removals) and opioid prevention funds. Regarding opioid funds, staff said settlements are arriving on varying schedules (some spread over 18–20 years) and Eagan has so far seen roughly $81,000 annually; the city elected to receive settlement funds directly rather than send them to the county, but staff said coordination with Dakota County Health is ongoing to develop allowable prevention and treatment programs. The police chief said recent state distribution of Narcan has reduced one potential expense for these funds.
Council’s policy feedback included support for proceeding with the proposed utility rate changes, continuing to bring recreation fee-schedule updates for Dec. 3, trialing the proposed 30-hour sustainability position, and continuing discussions with the county on opioid-settlement program design. Formal votes on fee changes and budget adoption are expected at the upcoming meetings.
