WS 2009 10 26
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 26, 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, Kate Aanenson, Paul Oehme, Greg
Sticha, Todd Hoffman, Richard Rice, Lt. Jim Olson and Chief Greg Geske
PUBLIC PRESENT:
Megan Burke Student
Lauren Moore Student
Johnny King Student
Bob Pohlen Student
2010 BUDGET DISCUSSION.
Todd Gerhardt began the discussion by noting that the 2010 budget was currently $72,000 from a
balanced budget but was confident that staff could recommend a balanced budget for approval in
December. He asked for feedback from council members regarding expectations for service
levels versus micro managing individual accounts. Greg Sticha noted that the library bond
refunding had been postponed due to the current volatile interest rate market before reviewing
highlights of the expenditure and revenue projections for 2010.
Police Administration Fund 1210.
Lt. Jim Olsonexplained that because crime numbers have
decreased in recent years and options available for covering busy shifts, overall he would be
okay with not hiring an additional police officer in 2010. Todd Gerhardt explained what the City
has done in the past few years to increase the number of officers by the hiring of an investigator
and school liaison. Councilman Litsey voiced his disappointment that the Sheriff’s Department
was not holding onto the plan it had presented to the City Council, noting he believes the City is
still not meeting key indicators citing clearance rate statistics from Chaska and surrounding
communities. Todd Gerhardt explained a way to get better clearance rates is by reallocating
resources to where and when there is demand. Councilwoman Ernst stated she understood there
was a plan presented by the sheriff’s department but that everybody has the need to adjust plans
due to the current economic conditions.
Legislative Fund 1110.
Laurie Hokkanen reviewed significant changes in this fund were
reduction in the travel and training budget, reduction in expenditures on meeting meals, and
reduction of postage to reflect actual spending now that the City is no longer publishing and
mailing the Maple Leaf publication. Councilman Litsey asked about the continued practice of
providing meals for work sessions and the possibility of reducing the number of work sessions
by putting more items on the regular city council agenda. Todd Gerhardt discussed the value of
City Council Work Session – October 26, 2009
providing hot meals for council members and the benefits to local vendors. Mayor Furlong
stated his appreciation and value of the work sessions and how the hot meals benefit city staff
members as well who come directly from work to the work sessions. Councilman McDonald
stated he appreciated the meals and would not favor staying later at council meetings.
Councilwoman Ernst expressed concern over the amount of time being spent on discussing items
of small financial impact to the overall budget.
Administrative Fund 1120.
Laurie Hokkanen stated the significant change in this fund was the
elimination of temporary salaries.
Finance Fund 1130.
Greg Sticha reviewed the significant change in the new audit contract
which allowed for a reduction in contractual services.
Legal Fund 1140.
Laurie Hokkanen stated the change to this fund was to more accurately
reflect actual spending. Councilman Litsey asked how often this contract is reviewed and sent
out for bid. Todd Gerhardt stated he would prefer not taking legal services out to bid due to the
extensive knowledge that Campbell Knutson has of city codes and historical background but
would be okay with sending out to bid the prosecutorial contract. He noted that staff periodically
does a rate comparison survey with other communities for legal services. Councilman Litsey
asked about the need for legal counsel to attend every council meeting.
Property Assessment Fund 1150.
Laurie Hokkanen noted there were no significant changes
proposed for this fund.
MIS Fund 1160.
Richard Rice explained that the significant change in this fund was the major
annual software maintenance expenditures being moved to the capital budget.
City Hall Fund 1170.
Laurie Hokkanen noted there were no significant changes proposed for
this fund. Councilman Litsey asked for clarification of insurance costs.
Elections Fund 1180.
Laurie Hokkanen noted there were no significant changes proposed for
this fund.
Library Fund 1190.
Laurie Hokkanen noted there were no significant changes proposed for
this fund.
Fire Department Fund 1220.
Chief Gregg Geske explained the reduction in the retirement
contributions and payroll expenditures was to more accurately reflect actual spending. Mayor
Furlong asked about adequate staffing at the fire department.
Code Enforcement Fund 1250.
Kate Aanenson reviewed the significant changes in this fund
due to elimination of temporary salaries, wages and overtime and the fact that electronic
scanning of building plans is being performed in-house. Councilman Litsey asked about the
need for elimination of a full time employee from this department. Councilman McDonald
asked about the opportunity for contractual services.
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City Council Work Session – October 26, 2009
Community Service Fund 1260.
Laurie Hokkanen noted there were no significant changes
proposed for this fund.
Engineering Department Fund 1310.
Paul Oehme noted there were no significant changes
proposed for this fund. Councilwoman Ernst asked for clarification on what work was being
performed in-house. Mayor Furlong asked about bridge inspections and reimbursements from
other agencies.
Street Maintenance Department Fund 1320.
Paul Oehme discussed the increase in workers
compensation insurance and the estimated cost of salt and sand for snow/ice removal control.
Street Lighting and Signals Fund 1350.
Paul Oehme discussed the joint powers agreement
with the County in which the City is responsible for paying the power of the signals on Lyman
Boulevard and increases due to additional development in the area. Councilman McDonald
asked about the status of the studies on possible cost savings with the use of LED lighting.
City Garage Fund 1370.
Paul Oehme reviewed the reduction in estimated fuel costs for 2010
and an increase in utility and operations cost associated with the new public works facility. Todd
Gerhardt discussed the possibility of a new revenue source from the Minnehaha Watershed
District for vehicle maintenance. Mayor Furlong asked about the status of the joint fuel contract
with the State of Minnesota.
The council took a short recess at this point in the work session.
Planning Commission Fund 1410.
Kate Aanenson noted there were no significant changes
proposed for this fund.
Planning Administration Fund 1420.
Kate Aanenson noted there were no significant changes
proposed for this fund.
Senior Commission Fund 1430.
Kate Aanenson noted the decrease in this fund was to more
accurately reflect actual spending.
Park and Recreation Commission Fund 1510.
Todd Hoffman noted there were no significant
changes proposed for this fund.
Park and Recreation Administration Fund 1520.
Todd Hoffman reviewed the cost for
publishing, printing and mailing the semi-annual park and trail map.
Chanhassen Recreation Center Fund 1530.
Todd Hoffman explained that the inclusion of the
dance costume/competition fees was previously not included in the Rec Center budget, but that
these expenses are fully paid through charges and fees which are reflected in another part of the
budget. He also discussed the increase in contractual services for programs offered at the Rec
Center that are balanced by reductions in personal services.
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City Council Work Session – October 26, 2009
Lake Ann Park Operations Fund 1540.
Todd Hoffman explained the significant change in
this fund was due to a reduction in the lifeguard contract and a reduced utilities budget for
ballfield lights, heat and electricity.
Park Maintenance Fund 1550.
Todd Hoffman noted there were no significant changes
proposed for this fund.
Senior Citizens Center Fund 1560.
Todd Hoffman noted there were no significant changes
proposed for this fund.
Recreation Programs Fund 1600.
Todd Hoffman noted there were no significant changes
proposed for this fund. Councilman McDonald asked about feedback from residents on the
programs being provided. Councilman Litsey asked about the possibility of seeking donations to
cover city costs. Mayor Furlong discussed the amount of volunteer support received from
various civic organizations. Councilman Litsey reiterated his disappointment that the council
did not levy appropriately to support core city services. Councilwoman Ernst noted the council
had heard these issues previously when the preliminary levy was set. Councilman McDonald
felt the council was getting too much into the details of the budget, asking that the City Manager
present a proposal on how to balance the budget.
Self Support Programs Fund 1700.
Todd Hoffman explained that the significant change in this
fund was due to moving some youth sports out of this budget to start the new Recreation Center
Sports program.
Rec Center Sports Fund 1800.
Todd Hoffman explained that this is a new revenue generating
program for 2010.
Enterprise Funds:
Water Operations Fund 700.
Paul Oehme reviewed the decrease in salary and wages based on
utility staff time attributable to water operations, and a decrease in the electrical utility budget
and repairs to equipment budget.
Sewer Operations Fund 701.
Paul Oehme reviewed the increase in wages based on utility staff
time attributable to sewer operations, an increase in the Met Council charge, and a decrease in
maintenance materials and utility cost estimates.
Surface Water Management Fund 720.
Paul Oehme reviewed the reduction in the supplies
program, printing and publishing.
Greg Sticha explained that Ehlers and Associates would be presenting the proposed changes to
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the rate study at the November 9 work session. Todd Gerhardt encouraged council members to
call him with any questions or suggestions. Councilwoman Ernst complimented staff on the
format of the budget presentation.
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City Council Work Session – October 26, 2009
Mayor Furlong adjourned the work session meeting at 8:30 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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