SUM 2003 12 1 Truth in TaxCHANHASSEN CITY COUNCIL
TRUTH IN TAXATION HEARING
DECEMBER 1, 2003
Mayor Furlong called the meeting to order at 7:00 p.m. The meeting was opened
with the Pledge to the Flag.
COUNCIL MEMBERS PRESENT: Mayor Furlong, Councilman Ayotte, Councilman
Labatt, Councilman Lundquist and Councilman Peterson
STAFF PRESENT: Todd Gerhardt, Justin Miller and Bruce DeJong
PUBLIC PRESENT:
Dick Hanson
Melissa Gilman
Jerry & Janet Paulsen
Jeff Seiler
Debbie Lloyd
Ann & Kenneth Block
7750 Crimson Bay Road
Chanhassen Villager
7305 Laredo Drive
6511 Gray Fox Curve
7302 Laredo Drive
7015 Dakota Avenue
Mayor Furlong thanked staff for their cooperation and hard work through the budget
planning process. He amended the agenda to include council comments following the
public hearing. Bruce DeJong then provided a power point presentation outlining
required elements for Truth in Taxation, the budget process undertaken by the City
Council and staff, projected expenditures and revenues for 2004 compared with 2003,
general fund expenditure history, what factors changed the budget for 2004, the need for
a fund balance, debt service projections, net tax levy effects, and the effect on
homeowners. Mayor Furlong opened the public hearing.
Jerry Paulsen, 7305 Laredo Drive asked for clarification on a legislative line item in the
budget of approximately $100,000 and how that is spent other than being a member of
the League of Minnesota Cities, specifically for lobbying efforts. He stated his
reservations about public entities lobbying for money from other public entities. Deb
Lloyd, 7302 Laredo Drive stated that from her observations in the previous week's work
session, she felt as a matter of public record it would be good to present the type of tough
questions the City Council asked staff so people would know what is really being looked
at, i.e. employee salaries and benefits. Bruce DeJong outlined the $148,000 in cuts being
proposed by staff. Jeff Seiler, 6511 Gray Fox Curve thanked the council for their hard
work on setting the leadership role in holding the line on taxes, especially after attending
last year's Truth in Taxation meeting and hearing about the TIF district situation and the
debt of the city. He was relieved that his property tax was only going to be $3,100 next
year, however felt his overall property taxes are still up $900 in 2 years and that's a 40
percent increase and believes taxes in Chanhassen are still too high. He asked if the
council has any plans for working with the county or school districts on reducing taxes,
and if the city has looked at reducing personnel and health care costs. Richard Hanson,
Truth in Taxation Summary - December 1, 2003
7750 Crimson Bay Road thanked the council for taking a tough stand on taxes and cited
an example of his road being plowed only once after the last snowfall, compared with 3
or 4 plowings during snowfalls in previous years. He still had a concern with the
valuation on his house increasing 7 percent this past year which continues to add to the
tax burden. The public hearing was closed, but Mayor Furlong stated he would entertain
comments at the December 8th meeting if needed.
During discussion by council, Councilman Ayotte stated that taxes are still too high and
asked the people in the audience and watching at home to talk to their other government
entities on holding the line on taxes as well. He outlined where he feels staff has done a
good job in keeping costs down. Councilman Lundquist commended staff on following
council's direction to hold expenditures flat from last year to this year. He stated county
and school districts could learn something from staff on ways to offset increases in
personnel and health care costs by providing some leeway on cuts that are to determined.
Where staff thought they needed to increase spending and offset it in other ways.
Councilman Labatt stated he was proud of what staff has done but that there are still
tough questions to be addressed in the future. Councilman Peterson expressed his
excitement and that he was proud of the fact that this proposal is doing more with less
and challenged other leaders in the county to do the same. Mayor Furlong concurred that
he felt this proposal was good for the city from a budget and levy standpoint. It's hard
sometimes to see within the numbers what's not there and back to the personnel questions
that's been raised a couple times, what's not there is some addition to staff that was
desired and Mr. Gerhardt exemplified the ability to take advantage of attrition to
reorganize the staff from a service level to reduce cost. To reduce overall cost for getting
the same work done at less cost. Be more efficient in how it's done. Overall a zero
percent levy increase and zero percent increase on expenses is a wonderful goal
considering where this process started, and especially in light of the significant increase
in the debt that was coming due in 2004. Mayor Furlong invited the public to share any
questions or comments via e-mail or to call the city manager, mayor or council members.
Councilman Lundquist moved, Councilman Labatt seconded to adjourn the
meeting. All voted in favor and the motion carried. The Truth in Taxation meeting
was adjourned at 8:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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