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WS 2003 05 27CHANHASSEN CITY COUNCIL WORK SESSION MAY 27, 2003 Mayor Furlong called the work session meeting to order at S:4S p.m. COUNCIL MEMBERS PRESENT: Mayor Furlong, Cotmcilman Labatt, Councilman Ayotte, Councilman Lundquist and Councilman Peterson I~TAFF PRES~: Todd Gerhardt, Justin Miller, Kate Aanenson, Bruce DeJong, Todd Hoffman, Jerry Ruegemer, and Bob Generous A. TOBACCO USE POLICY. Jerry Ruegemer provided an update on the Tobacco Use Policy and passed out a Tobacco Free Youth Recreation newsletter. Councilman Ayotte asked how much CSO time and expense would be needed to enforce this policy. Staff indicated it was more an education policy than an enforcement issue. Councilman ~ stated that a lot of laws, state, county and city are not necessarily enforced but it provides law enfcn'cement a door to open to probable cause for such things as underage smoking. Mayor Furlong and Councilman Peterson questioned if this was the direction the city wanted to go. Councilman Ayotte stated he wanted'to see ordinances that could be enforced. B. QVI~R~ OF 2003 REVISED BUDGET Bruce DeJong reviewed the revised budget sheets he had prepared. Councilman Lundquist asked if staff had any concerns or "red flag" issues. Bruce DeJong stated there was still some concern with projected revenues but felt it was more of a concern for next year than this year. Councilman Ayotte asked for an update on the water meter program. Councilman Peterson stated it is beneficial to see year to date actual numbers versus year to date budget numbers. Monthly numbers would be the best scenario, so that council could track trends and variances to the budget. Bruce DeJong clarified questions on the cash balances report and invexamnt summary report. He explained his investment strategy in the cummt economic climste_.. C. TAXATIQNIFINANCF_JSTRATEGIC PLAN: 2004 BUDGET PR0~. Todd Gerhardt and Bruce DeJong explained what staff has d~ne to date and outlined the proposed calendar for the upcoming 2004 budget process, incoxporating the Key trmancial Strategies the City Council has been discussing. Bruce I)egong explained how legislative items would be affecting the budget and new state laws on levy limits. Council discussed possible increases in revenue. Todd Gerhardt stated the City would follow the Building Code for increase in permit fees. Councilman Lundquist suggested keeping expenses flat from last year to this and being aggressive in order to address the TIF deficit issue. Bruce De,long asked if council was comfortable raising the levy limit. Councilman Lundquist stated he was not to offset expenses but would be to reduce the TIF deficit. Councilman Peterson suggested targeting a 0% levy increase and zero base budgeting. Councilman Ayotte was concerned about e~ being forced upon the City, i.e. sheriff' s contract, new library, etc. Councilman Labatt disagreed with zero base budget and reminded the council that the citizens of Chanhassen do not want to see cuts in service. Mayor Furlong stated if there are increase costs, they will have to be offset from somewhere else in the budget. He stated the city has to figure out a way to have zero growth in expenses. Councilman Labatt suggested giving staff the increa,se in the levy for expenses. Gerhardt stated staff would come back with scenarios for City Council to review. Mayor Furlong adjourned the work session meeting at 7:05 p.m. Submitted by Todd Gerhardt City Manager Prep~ by Nann Opheim Todd