12-11-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL
REGULAR MEETING
MINUTES
DECEMBER 11, 2023
Mayor Ryan called the meeting to order at 7:00 p.m. Boy Scout Troop 330 led the Pledge of
Allegiance.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman
Schubert, Councilman von Oven, and Councilman Kimber.
COUNCIL MEMBERS ABSENT: None.
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Kelly Grinnell, Finance Director; and Andrea McDowell Poehler, City Attorney.
PUBLIC PRESENT:
Boy Scott Troop 330
Scott Jesse, Scoutmaster, Boy Scout Troop 330
PUBLIC ANNOUNCEMENTS:
Mayor Ryan invited individuals to the Civic Campus Open House on December 12 at the Senior
Center from 4 p.m. to 6 p.m. to see the design and plans for future downtown and civic campus
development.
CONSENT AGENDA: Councilman McDonald motioned, and Councilman Kimber
seconded that the City Council approve the following consent agenda items 1 through 13
pursuant to the City Manager’s recommendations:
1. Approve City Council Minutes dated November 27, 2023
2. Receive Planning Commission Meeting Minutes dated November 6, 2023
3. Approve Claims Paid dated December 11, 2023
4. Approve Application for Exempt Gambling Permit for UnitedHealthcare Children’s
Foundation at Camp Fire, Minnesota
5. Approve Contract for 2024 Policing Services with Carver County Sheriff’s Office
6. Resolution 2023-92: Mediacom Cable Television Franchise – Extension to April 8, 2024
7. Resolution 2023-93: Adopt the 2024 Pay Compensation Plan
8. Resolution 2023-94: Approving the Application for Metropolitan Council Environmental
Services 2024 Private Property Inflow and Infiltration Grant Program
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9. Resolution 2023-95: Approve a Joint Powers Agreement with Carver County for the Powers
Boulevard and West 78th Street Intersection Improvement Project
10. Resolution 2023-96: Authorize Construction Services Contract for 2023 Stormwater Pond
Maintenance Project
11. Resolution 2023-97: Call Public Improvement Hearing for the 2024 City Pavement
Rehabilitation Project No. 24-01
12. Resolution 2023-98: East Water Treatment Plant Biological Treatment Pilot Study
13. Resolution 2023-99: Approve Contract for 2024 City Tree Contractor with Shadywood Tree
Experts
All voted in favor, and the motion carried unanimously with a vote of 5 to 0.
VISITOR PRESENTATIONS.
Scott Jesse, Scoutmaster for Boy Scout Troop 330, explained that the troop is working on their
Citizenship and the Community Merit Badge. The scouts need to observe how a City Council
meeting is conducted.
PUBLIC HEARINGS.
1. Approve Proposed Liquor License Fees for 2024
Matt Unmacht, Assistant City Manager, provided a background on the Chanhassen Liquor
License Fees and shared the process to create the updated proposed liquor license fees. He shared
the phased approach for the fee increase.
Councilman von Oven asked what prompted the liquor license fee change.
Mr. Unmacht stated the City Clerk realized the fees had not changed in many decades. The City
needs to meet State standards for what the liquor license fees should be, and the staffing needs to
process liquor licenses have changed.
Mayor Ryan opened the public hearing. There were no public comments.
Mayor Ryan closed the public hearing.
Mayor Ryan commented on the phased liquor license fee changes to provide businesses with
opportunities to prepare for the changes over the course of time.
Councilwoman Schubert moved, and Councilman von Oven seconded that the City Council
approve the amended liquor license fees for 2024 to be included in the 2024 Fee Schedule.
All voted in favor, and the motion carried unanimously with a vote of 5 to 0.
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2. Resolution 2023-100: Truth-in-Taxation Public Hearing on the 2024 Budget –
Approving the 2024 Final Budget, 2024-2028 Capital Improvement Plan, and Final
2023 Tax Levy, Collectible in 2024; and Ordinance 720: Adopt 2024 City Fees and
Charges Schedule and Approve Summary Ordinance 720 for Publication Purposes.
Finance Director Grinnell presented information about the 2024 budget process. The staff started
working on the 2024 budget in 2023 with various meetings and work sessions throughout the fall
before the Truth and Taxation meeting. Ms. Grinnell discussed budgeting principles and
constraints, including cash flow, long-term solvency, service-level solvency, and a balanced
budget. The city considered the tax levy and how to keep it at a minimum level while providing
necessary services. The city faces various budget constraints, including utility rates and ongoing
maintenance needs. Ms. Grinnell shared that the Chanhassen Consolidated Annual budget is
$69.7 million, divided into $49.8 million for governmental funds and $19.9 million for enterprise
funds. She shared the capital project funds are higher than normal at $31.7 million due to some
additional street projects, including Galpin Boulevard improvements. The utility funds have also
increased due to street improvements.
Ms. Grinnell provided an overview of the 2024 general fund budget, including the total revenues
and expenditures, which shows a $90,000 surplus. She noted different factors contributing to
these changes, including the transportation infrastructure management fund changes, county
policing contracts, park and recreation increases, and a full-time firefighter position. The City
Council directed the city to set aside $40,000 of the surplus for future health insurance premium
increases and $50,000 for park projects. Ms. Grinnell shared the property tax increases and
charges for services, with property tax compromising 75 percent of the general fund. She shared
general fund expenditures, including public safety, public works, and parks and recreation. Ms.
Grinnell provided an overview of the special revenue fund budget, including charitable
gambling, cemetery, cable franchise, and grants. She stated they are phasing out the cable
franchise into the general fund. The grant fund includes money for special projects, such as
American Rescue Plan Act (ARPA) funds for the Lake Ann Park Preserve Project.
Ms. Grinnell provided an overview of the proposed 2024-20248 capital improvement and project
funds budgets, vehicle and equipment fund budget, capital facilities fund budget, park
development fund budget, transportation infrastructure management fund budget, and pavement
management fund budget. She shared the 2024 projected total for the capital improvement
projects was higher than normal but returns to an average amount from 2025 to 2028. She noted
the civic campus project is not included in the capital improvement project funds. She compared
the 2023-2024 water fund revenue, sewer fund revenue, and stormwater fund revenue. She
explained the city expects to issue bonds in 2024 for various street projects. She provided an
example of an average monthly utility bill for residents, with small increases for water, sewer,
and stormwater usage.
Ms. Grinnell compared the levy across 2024 to 2028, which is at a 7.4 percent increase for 2024.
This proposed levy increase falls at the lower end of the spectrum compared to other metro cities
with a similar population. Finally, she provided projected cost impacts to different homes
throughout Chanhassen.
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Mayor Ryan opened the public hearing. There were no public comments.
Mayor Ryan closed the public hearing.
Mayor Ryan thanked Finance Director Grinnell for a thorough presentation and budgetary work
throughout the year. She shared that the tax burden slide was helpful so city staff and the City
Council could answer various questions. She encouraged staff to consider how to present this
information to residents.
Councilman Kimber moved, Councilman von Oven seconded that the Chanhassen City
Council adopt a resolution approving the 2024 final budget, 2024-2028 Capital
Improvement Plan, and Final 2023 tax levy, collectible in 2024, and adopt an ordinance
adopting the 2024 City Fees and Charges Schedule and approving a summary ordinance
for publication. All voted in favor, and the motion carried unanimously with a vote of 5 to
0.
GENERAL BUSINESS None.
COUNCIL PRESENTATIONS. None.
ADMINISTRATIVE PRESENTATIONS.
Mayor Ryan thanked the Park and Recreation staff for their work on their light display and
Councilwoman Schubert for the time spent emceeing for the event. She thanked staff and
Council members for the time they spent during City Council Work Sessions.
CORRESPONDENCE DISCUSSION.
1. Letter of Support for the Highway 5 and Highway 41 Intersection Project Funding
Request dated November 20, 2023
2. Advanced Notice for the Future 2025 City Pavement Rehabilitation Project
3. Neighborhood Open House Invitation for 2024 City Pavement Rehabilitation Project
Councilwoman Schubert moved, and Councilman McDonald seconded to adjourn the
meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The
City Council meeting was adjourned at 8:11 p.m.
Submitted by Laurie Hokkanen
City Manager
Prepared by Kim Meuwissen
City Clerk
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