City Council Agenda Item 3.E

Meeting of October 12, 2026
City of Minnetonka Logo
 
Title:

City Manager review process, training and compensation 

 
Report from:

Moranda Dammann, Assistant City Manager 

 
Submitted through:

Sarah Donovan, Human Resources Manager

Erik Nilsson, City Attorney 

Mike Funk, City Manager 

 
Presenter:
Sarah Donovan, Human Resources Manager and Moranda Dammann, Assistant City Manager
 

Action Requested:

Receive training and provide feedback on compensation.

 

Summary Statement

Each year, the Minnetonka City Manager undergoes a performance review as outlined in the employment agreement, providing the City Council an opportunity to give feedback on the manager’s leadership and alignment with City priorities. In response to Council feedback, the evaluation form was updated and implemented for the 2025 review. For the 2026 evaluation, the City will transition to NeoGov Perform, and Council will receive training on the platform and evaluation process as part of this agenda item. Additionally, as part of the annual review process, the City Council reviews the City Manager’s compensation for the upcoming year, including the process for negotiating compensation in good faith.

 
Strategic Plan Relatability
N/A
 
Background

Each year, the Minnetonka City Manager undergoes a performance evaluation as required by Article 3 of the employment agreement. The evaluation provides the City Council an opportunity to provide feedback on the City Manager’s leadership and alignment with City priorities and must occur during the last fiscal quarter of each calendar year.


Following Council feedback, the evaluation form was updated and used for the 2025 review. For 2026, the evaluation will transition to NeoGov Perform. Council members will receive training, and on October 13 will receive access to the evaluation, a training video and directors’ evaluations. Evaluations must be completed by October 30.

 

The review will be conducted at the November Council meeting with the fewest agenda items.

 

Additionally, in 2023, Minnesota removed the statutory salary cap for local government employees. In late 2024, the City Council had three members volunteer to review Mr. Funk’s compensation and recommend his 2025 salary. In 2026, he received the same increase provided to non-union employees. The Council previously expressed interest in revisiting the compensation as the market continues to move. 

 

Staff is seeking Council direction on whether to conduct an in-depth review of the City Manager’s compensation. Council could choose to continue the existing process without an in-depth review; ask fewer than a quorum of Council members to volunteer to review compensation and make a recommendation, similar to the 2024 process; or review the City Manager’s compensation relative to peer cities as a full Council and address compensation directly with City Manager Funk.

 
Discussion Questions

Does the city council have any questions regarding the review process? 

Does the city council wish to evaluate the City Manager compensation? 

  • If yes, which option does the council desire?