WS 2010 12 06
CHANHASSEN CITY COUNCIL
WORK SESSION
DECEMBER 6, 2010
Mayor Furlong called the work session to order at 8:25 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, and Greg Sticha
DISCUSS PROPOSED 2011 BUDGET.
Staff proposed the following budget adjustments totaling $54,000:
eliminate animal licensing - ($10,000.)
eliminate revolving assessment construction fund transfer - $50,000
increase in fire relief pension contribution - ($70,000)
decrease in interest earning projection - ($30,000)
reduction in capital replacement equipment fund levy - $74,000
reduction in wages from 2% to 1% - $40,000
In discussing animal licensing, council members discussed revenues versus cost and decided on
looking at changes to the ordinance next year. Staff explained the elimination of the revolving
assessment construction fund transfer and the increase in the fire relief pension contribution.
Council members were comfortable with these changes. A decrease in the interest earning
projection and reduction in the capital replacement equipment fund levy were made to reflect
more accurate numbers. Council members had a lengthy discussion on wages and health care
benefits in comparison to other key financial strategy cities and private versus public sector
management. Mayor Furlong asked that this discussion be included with the council’s 2011
strategic initiatives. In summary the council was in support of staff’s recommendations with the
exception of wages. Mayor Furlong proposed staff show the budget with a 1% increase in wages
with specific examples of the net effects to employees with a 0, 1 and 2 percent increase. Todd
Gerhardt expressed his real concern that new growth isn’t being captured with this budget.
Mayor Furlong adjourned the work session meeting at 10:20 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim