WS 2010 08 23
CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 23, 2010
Mayor Furlong called the work session to order at 5:00 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, Todd
Hoffman, Greg Sticha, Richard Rice, Commander Jeff Enevold, Sgt. Peter Anderley, and Chief
Roger Smallback
2011 BUDGET PRESENTATIONS BY DEPARTMENT.
Greg Sticha reviewed the three budget scenarios being submitted to council for their review,
noting that a number of factors can change by the end of the year:
Scenario 1 - 1.18% increase
Scenario 2 - 0% increase
Scenario 3 - 0.97% decrease
Council members discussed projected versus budgeted revenue numbers, the amount of money
associated with the unknown percentages in the different scenarios, and the catastrophic fund.
Detailed Individual Fund Presentations:
Legislative 1110 -
Laurie Hokkanen reviewed the details for this department noting there were
no significant changes from 2010 to 2011. Councilman Litsey and Mayor Furlong asked for
clarification of what was included in the potential cost reduction of $1,000. After discussion of
The Connection costs and ways to save money, Councilman McDonald suggested putting The
Connection on the city’s web site and sending out postcards as a way to save money. Todd
Gerhardt and Todd Hoffman explained how the Park and Rec programs would be the most
affected.
Administration Budget 1120
- Laurie Hokkanen reviewed the details for this department noting
there were no significant changes. Potential cost reductions of $2,700 could be seen in
contractual services. Councilman McDonald reiterated the use of the city’s web site as a cost
savings measure. Council and staff discussed options for making the City more paperless.
Councilwoman Tjornhom asked for clarification of health insurance costs. Laurie Hokkanen
stated she will provide a breakdown of insurance savings since switching to the Preferred One
health savings plan and specific costs associated with the city’s portion.
Finance 1130 -
Greg Sticha reviewed the details for this department noting there were no
significant changes being proposed. A potential cost reduction of $2,000 could be seen in
contractual services. Council discussed the audit costs.
City Council Work Session - August 23, 2010
Legal 1140 -
Laurie Hokkanen reviewed the details for this department noting a slight reduction
which reflects actual spending due to a decrease in development. A potential cost reduction of
$3,000 could be seen in contractual services. Councilman McDonald asked for a break down of
the city attorney and prosecution contracts. Council felt it would be worthwhile reviewing the
prosecution contract versus using the County Attorney’s office.
Property Assessment 1150 -
Laurie Hokkanen explained that the City contracts with Carver and
Hennepin County and that there would be a slight increase in the per parcel rate and a small
increase in the number of parcels being assessed. No potential cost reductions were identified.
Councilwoman Tjornhom asked about the cost difference between using the County versus
private sector versus in-house employees.
(Councilman Litsey left the work session at this point.)
MIS 1160 -
Richard Rice reviewed the details for this department noting increases in various
software maintenance fees and a potential cost reduction of $1,500 in contractual services.
Councilman McDonald asked if there were any substantial increases projected for software
upgrade costs in the future. Mayor Furlong asked about training costs, internet (webinars) versus
travel and training costs. Councilwoman Ernst asked about cross training of staff members.
(The City Council took a short break at this point in the work session.)
Fire Department 1220 -
Chief Roger Smallback reviewed the details for this budget. Laurie
Hokkanen reviewed the results of the citizen survey regarding the fire department noting overall
favorable responses. Chief Smallback explained the changes in increased personal service to
reflect increased call volumes and an increase in contributions for retirement. He reviewed a
potential cost savings of $11,000 in materials and supplies and contractual services including a
reduction in the contribution for retirement from $30,000 to $20,000. Greg Sticha discussed the
amount needed now and in the future for the retirement fund. Councilwoman Ernst asked for
clarification of what was included in the $11,000 potential cost savings.
Police Administration 1210 -
Todd Gerhardt reviewed the policing benchmarks from 2006
through 2009. Mayor Furlong asked about trends and if the current number of officers is
adequate to handle the work load. Commander Enevold explained how the work load formula is
used by the County and that the staffing levels include the school liaison officer and investigative
detective. Commander Enevold then presented the 2011 police plan noting that the Sheriff’s
Department was not recommending any staffing level changes for 2011 but would like to discuss
an increase in staffing levels in 3 to 5 years.
City Hall 1170 -
Laurie Hokkanen explained how utility costs had not increased as much as
anticipated so costs have been adjusted to reflect actual spending. There were no significant
changes in this fund with potential cost reductions in materials and supplies and contractual
services.
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City Council Work Session - August 23, 2010
Elections 1180
Laurie Hokkanen explained how there were no elections scheduled for 2011 but
the City budgets one-half of the election costs each year. No significant changes and no potential
cost reductions were identified.
Library 1190
- Laurie Hokkanen noted utility costs did not increase as much as anticipated and
costs had been adjusted to reflect actual spending. There is a potential cost reduction of $2,000
in contractual services.
Community Service 1260 -
Laurie Hokkanen explained there was a reduction in repair and
maintenance costs due to the fact that the vehicle had been replaced in 2010. She noted a
potential cost reductions of $1,000 in materials and supplies and contractual services.
Engineering 1310 -
Paul Oehme reviewed the details for this budget noting there were no
significant changes being proposed and no potential cost savings identified.
Street Maintenance 1320
- Paul Oehme reviewed the details for this budget noting a decrease in
materials and supplies and contracts due to past experience with a potential cost savings of
$6,000 in contractual services.
City Garage 1370 -
Paul Oehme reviewed the details for this department noting a decrease in
the fuel budget with potential cost savings of $11,400 from materials and supplies and
contractual services. Mayor Furlong asked about the joint fuel purchase agreement with the
State and associated cost savings. Councilwoman Ernst asked about the time line for committing
to and signing the contract with the State for the joint fuel agreement. Greg Sticha explained that
the actual utility costs for the new public works building were coming in lower than expected
and how the City is looking at ways to cut costs for the old public works building. Council
discussed potential cost savings associated with street lights.
Planning Commission 1410
- Kate Aanenson reviewed the details for this department noting
there were no significant changes identified and no potential cost savings
Planning Administration 1420
- Kate Aanenson reviewed the details for this department noting
that feedback from the citizen survey overall was favorable. No significant changes were
proposed with a potential cost reduction of $1,500 in contractual services.
Senior Commission 1430 -
Kate Aanenson reviewed details and citizen survey feedback for this
department. There were no significant changes with a potential cost reduction of $1,000 in
contractual services.
Code Enforcement 1250 -
Kate Aanenson reviewed the details for this department noting all
inspectors are cross trained. Councilwoman Ernst asked if there was enough work for two
inspectors to keep busy. Kate Aanenson explained that there is a lot of remodel work being done
at this time. Significant changes include a decrease in books, periodicals, printing and
publishing and potential cost reductions of $5,000 in contractual services. Councilman
McDonald asked for clarification of what’s included under code enforcement.
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City Council Work Session - August 23, 2010
(Councilman Litsey returned to the work session at this point.)
Park and Rec Commission 1510
- Todd Hoffman reviewed the details for this department
noting there were no significant changes or potential cost reductions identified.
Park and Rec Administration 1520
- Todd Hoffman reviewed details for this department and
citizen survey feedback. Significant changes included the elimination of printing the park and
trail map and potential cost reduction of $2,700 in contractual services. Mayor Furlong asked
about possible cost savings associated with having maps available online versus doing a mass
mailing. Staff stated they will look at potential cost savings for printing and distribution of these
maps.
Recreation Center 1530 -
Todd Hoffman reviewed the details for this department noting there
were no significant changes or potential cost reductions identified. Mayor Furlong asked about
actual costs for materials and supplies. Councilman McDonald asked about revenue from the
Rec Center and the possibility of increasing fees for certain groups. He asked for a copy of the
City’s fee schedule and how that relates to the school district and county’s policies regarding
their facilities. Councilwoman Ernst asked about capacity numbers. No significant changes or
potential costs reduction were identified.
Lake Ann Park Operations 1540
- Todd Hoffman reviewed the details for this department
noting there were no significant changes with potential cost reductions of $6,200 for personal
services and materials and supplies.
Park Maintenance 1550 -
Todd Hoffman reviewed the details for this department. Todd
Gerhardt explained that there was a pinch in the spring and fall when the seasonal park
maintenance staff are not employed. Councilman McDonald asked what planning is being done
for Emerald Ash Borer disease control. Mayor Furlong asked for a review of the boulevard tree
replacement policy as a part of the Council’s strategic planning process. Todd Gerhardt
suggested that could be an item of review for the Environmental Commission. No significant
changes were identified with a potential cost reduction of $4,600 in materials & supplies and
contractual services. Councilman McDonald asked about the potential of delaying projects to
help cut costs.
Senior Citizen Center 1560 -
Todd Hoffman reviewed the details for this department noting
there were no significant changes proposed with a potential cost reduction of $600 in materials
and supplies. Todd Gerhardt noted that Susan Bill is doing a great job as Senior Center
Coordinator and asked that the City Council look at increasing her hours in the future.
Recreation Programs 1600
- Todd Hoffman reviewed the details of this department noting
there were no significant changes and a potential cost reduction of $4,100 in contractual services.
Mayor Furlong asked how revenues relate to expenses for the different recreation programs.
Self Supporting Programs 1700 -
Todd Hoffman reviewed the details for this department
noting there were no significant changes and a potential cost savings of $400 in materials and
supplies.
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City Council Work Session - August 23, 2010
Recreation Sports 1800 -
Todd Hoffman reviewed the details for this department noting a
positive growth in this and the self supporting programs. He noted a potential cost savings of
$500 for materials and supplies.
This concluded the detailed presentations. Greg Sticha reminded the council that they could
discuss this further in the work session prior to setting the preliminary levy amount at their
th
September 13 meeting. Council members congratulated staff on a great presentation. Mayor
Furlong suggested that in future presentations revenues be associated with department expenses.
Mayor Furlong adjourned the work session at 9:35 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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