WS 2011 06 27
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 27, 2011
Mayor Furlong called the work session to order at 5:35 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilwoman Ernst, Councilman
Laufenburger, Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Paul Oehme, Todd
Hoffman, Greg Sticha, and Danielle Washburn
REVIEW 2010 AUDIT, HLB TAUTGES REDPATH, LTD.
David Mol with HLB Tautges
Redpath reviewed the findings of the 2010 Audit which included the following reports issued by
the auditor: Opinion on Financial Statements, GFOA Award of Excellence in Financial
Reporting that will be submitted for 2010, Report on Internal Controls, Report on Compliance
with Minnesota Legal Compliance Audit Guide, and Communication to Those Charged with
Governance. Mayor Furlong asked about the impact of the future GSAB 54 requirements.
David Mol reviewed the financial summary which showed all the funds maintained by the City,
general fund comparison to budget, operating expenses and revenues for the utility funds, noting
the overall opinion was good results. Greg Sticha thanked Danielle Washburn and the financial
department staff for their hard work on putting together this audit.
REVIEW CAPITAL FUND BALANCES AND TRANSFERS.
Greg Sticha reviewed how
the results of the audit compare to fund balances and transfers before reviewing an analysis of
the current status of the revolving assessment fund, street pavement management fund, park
dedication fund, and capital equipment replacement fund. Councilman Laufenburger asked
about previous years surplus practices and current permit revenues status. Councilwoman Ernst
asked for the history of the catastrophic fund balance.
REVIEW AMENDMENTS TO INVESTMENT POLICY.
Greg Sticha reviewed proposed
changes to the investment policy which was being considered on the consent agenda at the
regular City Council meeting.
REVIEW AMENDMENTS TO PURCHASING POLICIES AND PROCEDURES.
Greg
Sticha reviewed proposed changes to the purchasing policies and procedures which was being
considered on the consent agenda at the regular City Council meeting.
INITIAL 2012 BUDGET DISCUSSION.
Greg Sticha reviewed the information and numbers
from Carver County showing a reduction in property values of 2.75% and the impact on the
proposed 2011 budget from inflation numbers. Councilwoman Ernst asked about feedback from
residents on the effects from the budget numbers. Councilman Laufenburger asked for
clarification of the residential calculation graph. Mayor Furlong asked for a sense of how
Chanhassen’s budget numbers compare to other communities in the County. Greg Sticha
reviewed the schedule for meeting with department heads in preparation of the 2012 budget.
Councilwoman Ernst discussed concerns she’s heard from residents pertaining to employee
City Council Work Session - June 27, 2011
wages, insurance coverage and cutting the budget by 2%. Councilwoman Tjornhom expressed
concern that a 2% number was arbitrary. Mayor Furlong discussed service levels and the need to
look for efficiencies and effectiveness on budget costs. Councilman McDonald asked for
information on what services each department provides.
Mayor Furlong adjourned the work session at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
2