WS 2009 07 13
CHANHASSEN CITY COUNCIL
WORK SESSION
JULY 13, 2009
Mayor Furlong called the work session to order at 5:35 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Greg Sticha, Kate Aanenson, Todd
Hoffman and Danielle Washburn
PRESENTATION OF 2008 AUDIT REPORT; HLB, TAUTGES REDPATH, LTD.
Greg Sticha introduced Andy Hering with HLB, Tautges Redpath, Ltd who performed the City’s
2008 financial audit. Andy Hering reviewed highlights of the Annual Financial Report, noting
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that the City will receive the GFOA Award for the 6 year in a row. He reported that there were
no findings in the State Compliance Report, explained the two findings in the Report on Internal
Control report, reviewed the financial results for 2008 and stated that overall there were no issues
of concern. Greg Sticha explained how staff has already addressed the two findings from the
Report on Internal Control and thanked his staff, especially Danielle Washburn, for their
preparation for the audit which has resulted in decreased audit costs over the last couple years.
Todd Gerhardt also thanked Greg Sticha, Danielle Washburn and the financial department for
their ability to work together.
PRELIMINARY DISCUSSION OF 2010 BUDGET AND PROCESS.
Todd Gerhardt reviewed the proposed calendar for the 2010 budget discussions, asking for
feedback from council members regarding consolidation of the different department
presentations into one night as opposed to stretching it out over 2 to 3 months. Greg Sticha
discussed the efficiencies involved with presenting all the departments at one time and asked
how many options council members would like to see presented. Councilwoman Tjornhom
favored the idea of consolidating the presentations into one night, stating her hope that council
members would bring up any concerns earlier in the budget process as opposed to waiting for the
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9 hour to bring up concerns. She asked for more than two options and the associated
consequences for different levy scenarios. Councilman McDonald stated he would favor
consolidating the presentations into one night as long as it allowed enough time to address all the
issues. Councilman Litsey would go along with consolidation of the presentations but would
like to have follow-up nights available if more time is needed, preferably in early October.
Mayor Furlong explained that the preliminary levy is set in September and that council members
can have more detailed discussions in October. Todd Gerhardt explained how the department
presentations will differ this year from previous years. Councilman Litsey asked staff to present
what it will take to sustain current services levels as a starting point in budget discussions.
Mayor Furlong discussed possible scenarios council would like to see relating to projected
revenues versus changing service demands. Greg Sticha explained the example in the staff
report regarding the effect of tax rate with market value decrease.
City Council Work Session – July 13, 2009
MID-YEAR REVIEW OF 2009 BUDGET AND ECONOMIC FORECAST.
Greg Sticha explained the biggest impact to the budget is that building permit revenues are
down. Todd Gerhardt discussed how historically office-industrial has been good, but due to lack
of available land, budget numbers projected in the future will be similar to this year, which is
down from previous years. Councilman Litsey agreed with the need to take a more conservative
approach in the future. Councilwoman Ernst asked staff to clarify what their assumptions were
based on and agreed with Councilman Litsey to take a more conservative approach with next
year’s budget numbers. Todd Gerhardt explained staff’s proposal to deal with the anticipated
shortfall in 2009 revenues. Greg Sticha explained the specifics of addressing the shortfall in the
General Fund. Councilman McDonald asked for clarification of the ranking and affects of the
different proposals. Mayor Furlong stated his reaction or observation is that because revenues
have gone down, associated demand for certain service levels have also changed and that
changes made for 2009 will affect 2010 budget numbers creating a “new normal”.
Before recessing the work session, Mayor Furlong informed council members of an item being
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added to the consent agenda regarding changing the speed limit on West 78 Street.
The work session was recessed at 7:00 p.m. It was reconvened at 7:50 p.m.
UPDATE ON PROPOSED 2010 ROAD PROJECTS.
Paul Oehme reviewed the proposed 2010 road projects for the Erie Avenue area, Red Cedar
Point area, and Audubon Road between Lake Drive and Lyman Boulevard, providing historical
information for each area and PCI (Pavement Condition Index) numbers. Mayor Furlong
expressed the need to communicate with the affected residents the need for road and utility
construction. Paul Oehme outlined the problems that will be associated with the Red Cedar
Point area. In the Audubon Road project, the question of where to locate the trail and right-of-
way needs were discussed. Councilman McDonald asked if staff had taken into consideration
the truck traffic using Audubon Road as a shortcut to Highway 212. Mayor Furlong asked about
the funding sources for Audubon Road. Councilwoman Ernst asked about possible financial
assistance from the State or County for damage from their highway projects on city roads.
Mayor Furlong asked about the amount of engineering work that will be done in-house,
clarification of the schedule, and how notification to residents will occur. Paul Oehme noted that
money spent on the feasibility studies will be well worth it even if the projects don’t go forward
in 2010. Mayor Furlong asked staff to provide information to residents of where their roads are
in the queue for the upcoming years.
Mayor Furlong adjourned the work session meeting at 8:35 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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