Edina approves first reading of broad 2026 fee and utility-rate package

On Dec. 2 the Edina City Council granted a first reading to Ordinance 2025-16, which updates multiple city fees and increases utility rates for 2026.

Finance Director Pa Thao and staff outlined a package of changes that include a proposed water-rate increase of 5.25%, a sewer-user-rate increase of 9.25%, and a stormwater-rate increase of 15%. The ordinance also proposed several new and revised administrative fees: new liquor license consumption/display fees ($300), a $300 special-events application fee, a $125 low-potency hemp edibles registration fee, an initial cannabis-business registration fee of $500 and annual renewals at $1,000, and modest increases in numerous permit and service charges.

"These fees are crucial to our work plan and ensuring the city remains financially sustainable," Director Tao said in presenting the ordinance. Staff said statute requires some fees be set by ordinance and that fee levels be tied to the cost of providing the service. Council members asked clarifying questions about how departments set individual fee increases and staff said department managers reviewed competitive benchmarks and cost drivers.

The council voted to grant first reading; staff will return Dec. 16 for a second reading and final adoption. Several council members noted they will continue to ask for detail on department-specific fee justifications before final approval.

Next steps: final reading and vote scheduled for the Dec. 16 meeting; staff to provide additional department-level justification for select fee increases on request.