WS 2001 08 13CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 13, 2001
Mayor Jansen called the work session meeting to order at 6:15 p.m.
COUNCILMEMBERS PRESENT: Mayor Jansen, Councilman Ayotte, Councilman Peterson,
Councilman Labatt and Councilman Boyle
STAFF PRESENT: Todd Gerhardt, Acting City Manager, and Bruce DeJong, Finance Director
2002 BUDGET DISCUSSION.
Bruce DeJong began the discussion by providing background information and providing the good news and
bad news for the upcoming year. Councilman Ayotte asked about the risk of paying increased interest by
pushing the library bonding out until next year. He stated he wanted to see taxes go down while serving the
debt service. Todd Gerhardt explained the time line associated with using funds to build the library versus
the construction time and the legal limits for using that funding.
Bruce DeJong then explained the local government aid sheet that outlined how that city funds received from
the State were being impacted due to the recent legislative changes. There was talk of the city's levy limit
and state funding available. Todd Gerhardt explained that the State will be taxing commercial, industrial
and cabin properties to make up the difference for school funding that has been taken away. Bruce DeJong
stated that the city was on target as far as building permit revenues for this year and expected it to be okay
next year as well. Other revenue from property taxes would include two TIF districts decertifying next
year and being put back on the tax rolls.
There was discussion about the McGlynn TIF district and looking for revenue sources to fund the debt
that's been incurred. Bruce DeJong stated if funding sources could not be found, the city will have to put
the amount on the tax levy. Councilman Peterson stated he would like to see the fund balances and fund
balances expected at the end of this year and for the ensuing year. Mayor Jansen stated she would like to
see a worksheet showing the total debt levy and a comparison to last year and what the bottom line impact
on taxpayers is and options available.
Mayor Jansen then stated this was an initial run through of the budget and that council should e-mail any
specific questions to the Finance Director. Councilman Peterson requested to see the results from 5%,
10%, etc cuts across the board from the budget. The next step will be talking with the individual
department heads and going over their specific budgets. Todd Gerhardt stated that he has already asked the
department heads to start looking at possible cuts.
Mayor Jansen adjourned the work session meeting at 6:55 p.m.
Submitted by Todd Gerhardt
Acting City Manager
Prepared by Nann Opheim