CC SUM 2008 12 01
CHANHASSEN CITY COUNCIL
SPECIAL MEETING
SUMMARY MINUTES
DECEMBER 1, 2008
Mayor Furlong called the meeting to order at 7:15 p.m. The meeting was opened with the
Pledge to the Flag.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt and Greg Sticha
PUBLIC PRESENT:
Ryan Rydberg 1036 Pontiac Lane
Ben Gowen 6440 Hazeltine
Greg Bohrer 3706 Hickory Lane
Terry Kroells 1071 Chaparral Court
Cindy Pugh 260 Mountain View Court
Pat & Kathy Pavelko 7203 Frontier Trail
Kent Braun 900 Hiawatha Drive
Mayor Furlong asked to amend the agenda to include discussion on the 2009 budget.
TRUTH-IN-TAXATION PUBLIC HEARING.
Greg Sticha presented a review of the proposed 2009 budget highlighting the required elements
for holding a Truth in Taxation hearing and the budget process the city has undertaken over the
last few months. Mayor Furlong asked for clarification of the graph showing specific
comparisons between 2008 to 2009 home values, tax impacts, and limited market values before
opening the public hearing. Pat Pavelko, 7203 Frontier Trail asked if it was wise for the city to
look at a 52% increase in wages and health care costs when residents are staying flat or seeing
reductions in their wages and having to pay more for their health care, how the city will address
the decrease in valuations of residential property and it’s effect on city revenue, and an
explanation of the appeal process for home valuation. Kathy Pavelko, 7203 Frontier Trail
explained that she and her husband, who have lived in Chanhassen for 20 years, can’t afford to
live here anymore because they’re getting taxed out of their home. Ben Gowen, 6440 Hazeltine
asked that the numbers presented be re-evaluated and based on today’s economic circumstances
and not what was happening last summer when the numbers were prepared. Kent Braun, 900
Hiawatha questioned how his property values could continue to raise at double digit percentages
when property values in general are decreasing. Greg Bohrer, 3706 Hickory Lane asked for
clarification of the process for establishing taxes. Terry Kroells, 1071 Chaparral Court expressed
concern with the assessment process and how his home valuation could raise 10% annually in
today’s economy. Ryan Rydberg at 1036 Pontiac Lane asked for clarification of the line items
regarding administration cost and city offices cost on the Truth in Taxation statement. Ben
City Council Special Meeting - December 1, 2008
Gowen and Pat Pavelko reiterated that the council consider today’s economic conditions
regarding wages, health care, and fuel costs. Cindy Pugh, 260 Mountain View Court stated it is
the council’s responsibility to look for as many ways as possible to retain valued residents of
Chanhassen, and asked about the City’s contingency plan.
Councilman Litsey moved, Councilwoman Ernst seconded to close the public hearing for
the Truth in Taxation hearing. All voted in favor and the motion carried unanimously
with a vote of 5 to 0.
DISCUSSION OF 2009 BUDGET.
Greg Sticha presented specific options for lowering the levy amount to a 2.4% increase along
with items that could be placed in the catastrophic reserve fund which could be reviewed mid
year. Mayor Furlong asked the city manager to comment on the service level impacts associated
with each recommended expense reduction. Council members discussed deleting the Maple
Leaf publication, conducting the citizen survey every 4 years as opposed to the current every 2
years, and delay the hiring of a quarter patrol position that is currently scheduled for 2009 and
not hiring that position until 2010. There was considerable discussion regarding staff’s
recommendation not to sealcoat in 2009, which would save about $217,000 and to use that
money as contingency in case revenues fall short in 2009. Councilwoman Tjornhom asked about
including citizen surveys in the Connection publication. Councilwoman Ernst suggested putting
the Maple Leaf and Connection on line rather than spending the money for their publication.
There was discussion among council members on whether to use the money identified by staff to
reduce the levy or as contingency. Councilman McDonald asked about the effects of
foreclosures and delinquent taxes on revenues. Mayor Furlong asked council members if there
were any other expense line items or categories that staff could evaluate the potential effect of a
th
change in service level prior to the December 8 City Council meeting. Councilwoman Ernst
asked staff to continue to look at reducing wages. Councilman Litsey asked about costs
associated with providing dinners at work sessions and unnecessary out of state travel for council
members.
Councilwoman Ernst moved, 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 9:40 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
2