Minneapolis budget committee hears midyear update; city staff say most change items are on track

Vice Chair Emily Koski convened the Minneapolis City Budget Committee on Aug. 4, 2025, to review midyear changes to the 2025 budget, hearing presentations from the city’s chief operating officer, health commissioner, deputy city operations officer for CPED, public works director and other department leaders.

COO Margaret Anderson Kelleher opened the presentation and said the update covers earmarks, council-directed spending and other change items adopted earlier in the year. She urged caution when judging performance because, she said, many items need six to 12 months of post-enactment data before reliable metrics are available.

The Office of Community Safety reported a mix of staffing and contract changes. Commissioner Barnett said the police-related audit and compliance teams added two FTEs in 2025 and are seeking two more in 2026, and that MPD has hired civilian investigators and training staff. Barnett also said the city completed the transfer of the behavioral crisis response (BCR) program to the fire department and expects a BCR contract-extension request on the full council agenda; staff increased the contract ceiling by $945,000 to cover higher costs while clarifying whether some funding is one-time or ongoing.

Health Commissioner Damone Chaplin said the department’s midyear additions total about $4.78 million supporting roughly 10.8 FTEs, with major investments in lead-poisoning remediation, opioid-response and climate-resilience programs. Chaplin told the committee that school-based clinics received approximately $349,000 and 2.8 FTEs and reported 637 visits serving 74 students; the sustainability and healthy-homes allocation is about $3.1 million across seven FTEs; lead-poisoning work targets 102 dwelling units (44 under active remediation); and an opioid settlement-funded pilot has enrolled 80 patients.

Deputy City Operations Officer Brett Jelly summarized CPED’s 31 change items—just over $18 million in 2025—including development project loan activity (two loans approved totaling $900,000 and three others in negotiation), Business Technical Assistance Program contracts ($450,000), a $3.8 million Affordable Housing Trust Fund allocation (sales-tax/LAHA and CDBG program income), and housing stabilization and preservation programs. Jelly said staff are continuing RFP and contracting work and noted some earmarks will return to council for updates.

Public Works Director Tim Sexton briefed members on 11 change items, saying all are on track. He described funding for a speed safety camera pilot (about $1 million this year, five cameras planned for September, with a larger budget in 2026), seven hires to meet stormwater permit requirements, EV charging hub site planning (1–3 sites), an encampment maintenance allocation (equipment purchase and four quarter-time staff), and a $285,000 low-barrier employment pilot to hire people experiencing housing instability for cleanup work. Sexton also described neighborhood traffic calming projects (49 projects underway, including 127 speed humps) and pedestrian-scale lighting work in Dinkytown.

Members pressed staff on trade-offs tied to earmarks. Council Member Palmisano asked whether carbon-fee earmarks and other additions reduced the department’s ability to fund other energy-efficiency work; Deputy Commissioner Patrick Hamlin said earmarks funded contracting and a carbon-fees position and estimated about $1 million of reduced investments in other projects. Council Member Cashman asked for the name and contact of a Fifth Precinct crime-prevention specialist listed as hired; Barnett said the position is filled and committed to providing contact information in a follow-up memo. Council Member Vita asked what would happen to $400,000 that had been reserved as a local match for an Our Streets federal grant that did not materialize; Director Sexton said the funding returns to general maintenance, such as pothole and snow-plowing work.

COO Anderson Kelleher said staff will provide a memo with updated metrics and follow-ups requested by council members. With no further discussion, Koski asked the clerk to receive and file the midyear change-item report; the clerk received and filed it and the committee adjourned without objection.

The committee did not take formal roll-call votes on budget items during the meeting; staff indicated some contract actions (for example, a BCR extension) will come separately to the full council for action.