The council meeting opened with a presentation by Stu Thorley from the Minnesota Department of Health and the Minnesota Section of the American Waterworks Association, who presented the “Best in Glass” award to Chaska Water. The competition, which began in 2012, saw 22 entries this year and encourages public engagement through taste tests and trivia to raise awareness about the rigorous testing of municipal water supplies. The council members expressed pride in the achievement, citing the dedication of Chaska’s water staff and the unique taste profile attributed to the local hard water, rich in calcium and magnesium.

Concurrently, the council focused on budgetary concerns, particularly the adoption of a resolution for the proposed 2026 maximum property tax levy. This marked the initial formal action on the 2026 budget, continuing discussions from previous work sessions. The council emphasized maintaining existing high-quality service levels while ensuring sustainable long-term budget planning. Fully funding the street reconstruction program and maintaining a high bond rating were identified as key objectives, alongside a commitment to the capital asset maintenance program established in 2017.

The council reviewed the tax levy policy, which has been effective since 2015, focusing on capturing new growth from developments to meet increasing service demands. The conclusion of the building improvement program influenced current tax levy discussions, with a continued emphasis on addressing a staffing shortfall identified in a 2020 study. The council noted significant improvements in the general fund reserve balance, which rose from $1.9 million in 2020 to $6.9 million in 2024.

Local government aid reductions were addressed, with concerns about the financial impact of decreased funding. Nevertheless, strategic levy measures have helped mitigate the loss. Population growth in Chaska, estimated at 29,830 residents and over 11,000 households in 2024, was highlighted as a critical factor influencing budgetary decisions. This growth, coupled with a younger demographic profile, has implications for service expectations and resource allocation.

The council discussed the significant interest in industrial development, with several projects anticipated, alongside ongoing residential developments. New growth, primarily driven by new constructions rather than changes to existing properties, has contributed to a 7.51% increase in market values, alleviating the tax burden on current residents. Additionally, increased electricity sales have boosted revenue from the electric fund transfer to the general fund.

Council members further explored infrastructure improvements, particularly the need for a new substation in the north industrial park, reflecting robust demand from existing businesses. Residential developments in High Point Vista and Fultonwood areas were discussed, with expectations for progress by mid-next summer. Improvements to 82nd Street were credited for spurring development interest, and the council expressed optimism about upcoming industrial and residential projects.

Attention turned to the planned library and city hall renovations, with a task force anticipated to guide the community’s vision for the library. Construction is projected to begin in May 2028, concluding by late 2029, and city hall remodeling is expected by late 2030. The council expressed satisfaction with the timeline, noting the strategic allocation of funds, including contributions from utilities.

Public safety enhancements were also a focal point, with plans for a new safety center and improved facilities. The council noted that the addition of a new police officer and co-responder social worker would address complex mental health cases. The fire department’s transition to a 24-hour duty crew model is expected to improve response times significantly.