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WS 2010 11 22 CHANHASSEN CITY COUNCIL WORK SESSION NOVEMBER 22, 2010 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, Todd Hoffman and Greg Sticha KEY FINANCIAL STRATEGY: DISCUSS TAKING AN ACTIVE ROLE IN THE PUBLIC/PRIVATE REDEVELOPMENT OF THE CHANHASSEN DINNER THEATER AND CHANHASSEN TRANSIT STATION. Todd Gerhardt provided an update on discussions with property owners involved in the redevelopment action plan for the Chanhassen Dinner Theater and transit park and ride facility. Kate Aanenson discussed previous projects involving multiple property owners which will help with this planning process regarding traffic circulation, parking and permitted zoning uses. Councilman McDonald asked for clarification of what will drive this redevelopment. CONTINUE DISCUSSION OF UTILITY RATE STUDY. Todd Gerhardt reviewed answers to questions raised at the last work session. Greg Sticha reviewed historic numbers for specific rate and connection charges noting staff is recommending Option 1 which adds a fifth tier for water rates. Councilwoman Ernst asked for clarification of the usage breakdown for each tier, the number of affected households in each tier and the reason water usage appears to be going up with development down. Council members discussed the differences between the two options for water rates (4 tiers versus 5 tiers), options if water rates are not increased, and the need to ensure there’s enough supply to meet demand now and in the future. PROPOSED 2011 BUDGET DISCUSSION. Todd Gerhardt reviewed the changes made in the budget noting a decrease in interest earnings, an adjustment to the fire fighter pension numbers, and building permit revenue numbers. Council members discussed the following issues: animal licensing, the capital replacement equipment levy going forward, if transfers from the general fund to the revolving assessment construction fund should continue in the future, transferring a portion of cell tower leases back to the utility fund, and the amount of employee increases for 2011. Mayor Furlong discussed the practice of budgeting actual numbers from previous years rather than carrying budget numbers forward. Mayor Furlong adjourned the work session at 7:05 p.m. Submitted by Todd Gerhardt City Manager Prepared by Nann Opheim