WS 2011 08 08
CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 8, 2011
Mayor Furlong called the work session to order at 5:35 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilwoman Ernst, Councilman
Laufenburger, and Councilwoman Tjornhom
COUNCIL MEMBERS ABSENT:
Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Paul Oehme, Greg
Sticha, and Todd Hoffman
Mayor Furlong asked the Finance Director, Greg Sticha to provide an update on the pre-sale of
potential refunding bonds associated with the water enterprise fund, noting this item will be
th
added as item 1(d) under the consent agenda calling for the sale that will take place on Sept 12.
Councilman Laufenburger asked to be educated on the refunding process. Councilwoman Ernst
asked for clarification of the costs associated with the water tower engineering and construction
costs.
SECOND QUARTER FINANCIAL REPORT.
Greg Sticha reviewed highlights of the
investment analysis, expenses and revenues for the first half of the year. Councilwoman Ernst
asked for a breakdown of what was included in the City Council line item under expenses.
2012 BUDGET DISCUSSION.
Greg Sticha reviewed the assumptions used in preparing the
2012 budget. Laurie Hokkanen discussed the projected 15% increase in health insurance costs.
Staff discussed three scenarios and the estimated effect on the average taxpayer:
Scenario One: 0.36% increase (more than new construction of 1.16%)
Scenario Two: 0% increase (even with new construction of 1.16%)
Scenario Three: 0.87% decrease (less than new construction of 1.16%)
Councilwoman Ernst asked why staff was using a wage increase of 1.5% when council hasn’t
discussed that item yet. Councilman Laufenburger asked for clarification of the new
construction percentage. Greg Sticha reviewed revenue and expense projections before
recommending that council adopt Scenario 1 for the preliminary levy which gives the most
flexibility until the end of the year when the final levy is set. Additional points included in the
packet for discussion were charts of Carver County tax rate comparisons for 2011, budget
expenditure comparisons to KFS cities, revolving improvement fund, debt levy schedules, and
Star Tribune articles regarding building trends in the metro area. Todd Gerhardt explained that
the three scenarios being presented are basically management tools. Staff asked council
members to email questions about specific line items to give department heads time to address
nd
those questions during their detailed presentations on August 22. Councilman Laufenburger
asked for clarification of what’s included in the general liability insurance number and
consideration of no fault insurance. Mayor Furlong suggested that that item be discussed as a
City Council Work Session - August 8, 2011
nd
policy issue. Due to the length of meeting on August 22, Mayor Furlong asked council
members to be available to start the work session at 5:00 p.m. to provide sufficient time for
detailed presentations from department heads.
Mayor Furlong adjourned the work session at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
2