Meeting Information

• Date: September 23, 2024
• Title: Budget Committee Meeting
• Present: Elliot Payne, LaTrisha Vetaw, Jamal Osman, Jason Chavez, Emily Koski, Linea Palmisano, Aisha Chughtai (Chair). Robin Wonsley, Michael Rainville, Katie Cashman, and Andrea Jenkins joined later.
• Absent: Jeremiah Ellison, Aurin Chowdhury
• Guests: Erik Hansen (CPED Director), Enrique Velasquez (Regulatory Services Director)
• Votes: 0

Highlights

• Presentation on the 2025 Community Planning and Economic Development (CPED) budget
• Discussion of housing development trends and challenges in Minneapolis
• Presentation on the 2025 Regulatory Services budget
• Proposal for expanded unsheltered homelessness response activities
• Affordable Homeownership Preservation Program proposal

Discussion

CPED 2025 Budget Presentation

Erik Hansen, CPED Director, presented the department’s 2025 budget proposal. Key points included:

• The proposed budget is $119.7 million, including $10.3 million in change items
• There has been a significant reduction in housing entitlements, from around 4,000 units in 2022 to about 1,100 units in 2023
• The department is facing challenges with recruitment and retention due to competitive salaries in other agencies
• New initiatives include programming for Nicollet Mall and preparation for the 2050 Comprehensive Plan

Council members expressed concerns about the reduction in the department’s budget and its impact on services. Director Hansen explained that the decrease was largely due to the expiration of one-time funding sources, such as American Rescue Plan Act (ARPA) funds.

Councilmember Chavez raised concerns about the low participation rate of Native American community members in homeownership programs. Director Hansen acknowledged this issue and committed to working on improving outreach and accessibility.

Regulatory Services 2025 Budget Presentation

Enrique Velasquez, Regulatory Services Director, presented the department’s 2025 budget proposal. Key points included:

• A proposal for $850,212 in ongoing general fund investment to expand unsheltered homelessness response activities
• A request for $100,000 in one-time funding for the Affordable Homeownership Preservation Program
• Challenges faced by the department, including a stressed workforce and increasing nonpersonnel costs

Councilmembers expressed strong support for the department’s work, particularly in addressing livability issues and animal care and control. Councilmember Vetaw stated:

“I’m always going to support whatever you ask for here. Go big. But I do, I appreciate the work. I appreciate the collaboration with my office in particular on teaching us a lot of things and helping to navigate through these sometimes very complex issues but very important liveability issues.”

Councilmember Osman raised concerns about the need for additional staffing to address homelessness and encampment response. Director Velasquez explained that the department currently has four total positions for this work, with plans to hire additional staff.

Affordable Homeownership Preservation Program

The proposal for a $100,000 one-time investment in the Affordable Homeownership Preservation Program was discussed. This program aims to help low-income homeowners address outstanding housing orders to avoid displacement.

Councilmember Koski expressed strong support for the program, stating:

“I believe that programs that avoid displacement are critical right now, so I’m grateful to see this. And I think this program does more than just what you state here. You know, really it’s a gateway to learn about what’s happening in a resident’s life. It’s able to get residents access to other services.”

There was interest from multiple council members in potentially expanding this program and making it an ongoing funding item in future budgets.

Public Comments

There were no public comments during this meeting.