WS 2001 06 25CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 25, 2001
Mayor Jansen called the work session meeting to order at 5:05 p.m.
COUNCIL MEMBERS PRESENT: Mayor Jansen, Councilman Labatt, Councilman Peterson and
Councilman Ayotte
STAFF PRESENT: Todd Gerhardt, Todd Hoffman, and Bruce DeJong
A. INTRODUCTION TO MUNICIPAL BUDGETING.
Bruce DeJong distributed a handout to the council members entitled, "Guidance regarding Funds and
Budgets". He first went through the different fund types, what they do, and thanked the council for
allowing him to close the fund accounts that weren't being used. Councilman Peterson asked how he
balanced out funds that were closed with negative and positive balances. Bruce DeJong explained that they
mostly balanced each other out.
Mayor Jansen thanked Bruce DeJong for coming in and simplifying the funds and balance sheets of the city
and making it easier for the council to understand. She then explained to the other council members that
there are certain funds that can't be moved around so just because there's money in one fund, doesn't
necessarily mean you can use it in another fund.
Bruce DeJong then went over the budget process and how the tax levy is set. Councilman Ayotte asked
about the utility funds and if those funds covered sewer and water main replacements needed in the future.
Todd Gerhardt explained how the city calculates life expectancy of sewer and water mains. Mayor Jansen
stated that the CIP would cover that construction.
Mayor Jansen asked Todd Gerhardt to share with council the procedure staff follows in preparing the
budget for the upcoming year. Mayor Jansen stated the impacts the results from the community survey
would have in determining the budget for next year. Todd Gerhardt stated the council should have
preliminary frequencies of the survey by the end of July.
Councilman Peterson asked to provide direction to staff early on in the process for what items would be cut
if a reduction were requested. Councilman Ayotte asked that staff look for additional revenue generators.
Mayor Jansen stated she would like to see employees look outside the box when preparing their budgets.
B. 2001 BOND SALE.
Mark Ruff from Ehlers and Associates was present to discuss the results of the 2001 bond sale. He handed
out a summary of the rating by Standard and Poors and discussed what they liked and disliked about the
City. Standard and Poors gave the City a Positive Outlook with an A- rating. Councilman Labatt asked
Mark Ruff to clarify the rating system and the history of the city's ratings. Councilman Peterson asked for
clarification on "Reoffering Yields".
Todd Gerhardt explained to the City Council that a press release was being prepared in regards to the
City's bond rating and bond sale results and the good financial condition of the city. Councilman Ayotte
City Council Work Session - June 25,2001
asked that he call the reporter from the Star Tribune who had written the article on Chanhassen with that
information.
Mayor Jansen adjourned the work session and the City Council members went to Lake Ann Park for a
dedication of Lion's Club Monument.
The City Council work session was adjourned at 6:15 p.m.
Submitted by Todd Gerhardt
Acting City Manager
Prepared by Nann Opheim