WS 2013 08 26
CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 26, 2013
Mayor Furlong called the meeting to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman McDonald, Councilwoman
Tjornhom, Councilwoman Ernst, and Councilman Laufenburger
STAFF PRESENT:
Todd Gerhardt, Paul Oehme, Kate Aanenson, Todd Hoffman, Greg Sticha, Richard
Rice, Chief John Wolff, Lt. Jeff Enevold, and Miranda Hopp
DEPARTMENT REVIEW OF PROPOSED 2014 BUDGET PRESENTATION:
Todd Gerhardt provided an overview of the power point presentation which will highlight changes in the
budget. Department heads reviewed significant changes proposed under each budget item.
Legislative
– Significant change in subscriptions and membership increase.
Administration
– Change in sales tax and City Manager’s car allowance being moved to Salaries and
Wages.
Finance
– Adjusted for credit card fee expense. Councilman Laufenburger suggested staff look at
Squareup.com to manage credit card transactions. Councilman McDonald asked about charging a
convenience fee for credit card usage to recover costs being charged by credit card companies.
Legal
– Reduction to reflect actual spending in 2012/2013, offsetting revenue from 2012 and prosecution
services accounts.
Property Assessment
– Reflects increase in contract fees and increase in number of parcels. Councilman
Laufenburger asked about the assessment cycle used by Carver County and incorporating house
remodeling to property values.
MIS
– Net impact between reduction in materials and supplies and increase in contractual services
results in an increase. Councilman Laufenburger asked about the cost associated with using the Carver
County fiber ring. Mayor Furlong asked about Wifi hotspots.
City Hall
– An increase in office supplies to reflect actual costs and reduction in general liability
insurance to reflect current rates.
Elections
– Increase to account for changes in election procedures to reflect actual costs. Mayor Furlong
questioned whether the City was budgeting too much for this item.
Library
– A reduction in utilities, repairs and maintenance to reflect actual costs.
Police Administration
– An increase in the CCSO, and sheriff’s contract for labor contracts, PERA rates
and works compensation insurance. Councilman McDonald asked if this increase includes adding an
additional officer. Lt. Jeff Enevold discussed the analysis done on obligated versus unobligated staffing
time which stated the sheriff’s department could provide needed services with the current number of
officers. Mayor Furlong asked staff to investigate why CSO’s are not included with this item.
Fire Department
– Increase to reflect officer stipend adjustment, and contractual services for health
surveillance costs, iPad cell service and radio battery replacement. Councilman Laufenburger asked what
happens to old radios and fire equipment and if this budget item reflects the fire chief position. Mayor
Furlong asked about workers compensation insurance rates. Staff stated they would provided an analysis
on the insurance costs.
Community Service
– Reduction in costs due to Canine Club now handling impound fees.
Engineering
– No significant changes projected.
Street Department
– Maintenance materials, and decrease in salt purchases to reflect actual usage.
City Council Work Session – August 26, 2013
Fleet Department
– Increase in fuel costs based on actual usage by Carver County Sheriff’s Office with
an offsetting increase in revenues, and decrease in utility costs of the old public works building which are
now being paid by the leasee.
Street Lighting & Signals
– Projected increase in usage rates and new lights.
Planning Commission
– No significant changes projected.
Planning Administration
– No significant changes projected. Councilwoman Ernst asked for a
breakdown of wages and benefits under personal service.
Senior Commission
– No significant changes projected.
Code Enforcement
– Increase in part time staffing dollars for support staff and building inspections in
peak hours.
Park and Recreation Commission
– No significant changes projected.
Park and Recreation Administration
– No significant changes projected.
Recreation Center
– No significant changes projected.
Lake Ann Park Operations
– Increase projected for purchase of paddle board for the watercraft rental
operation.
Park Maintenance
– No significant changes projected.
Senior Citizens Center
– No significant changes projected.
Recreation Programs
– No significant changes projected.
Self Supporting Programs
Todd Hoffman discussed a decrease under this item due to a decline in adult
softball and basketball programs, which is a trend across the country. Councilman Laufenburger asked
about golf leagues.
Recreation Sports
– Increase in wages due to participation with off setting revenues.
After the itemized presentation were concluded, Councilman McDonald asked for a breakdown on
revenue generated from the County. Greg Sticha reviewed the following potential levy reduction ideas
and service impacts:
1) Sealcoating levy reduction.
2) Reduction in Law Enforcement Services.
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3) 4 of July Celebration Fireworks reduction.
4) Skate Park Attendants reduced or eliminated. Councilman McDonald asked about liability associated
with dropping skate park attendants and lifeguards.
The work session was recessed at 7:00 p.m. It was reconvened at 7:45 p.m.
CONTINUATION OF DEPARTMENT REVIEW OF PROPOSED 2014 DETAILED BUDGET.
5) Lifeguards at Lake Ann Park: Discussion of potential levy reduction ideas continued with a possible
elimination of lifeguards at Lake Ann. Mayor Furlong suggested continuing with this service.
6) CSO Position reduction. Council members discussed pros and cons of hiring CSO’s under the city
versus having them under the sheriff’s department. Councilman Laufenburger suggested reducing two
part time positions and replace it with one 30 hour employee due to attrition. Councilwoman Ernst
concurred with that idea.
7) Congregate Dining/Meals on Wheels. Mayor Furlong asked about the number of participants.
8) Ice skating rink elimination.
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City Council Work Session – August 26, 2013
9) Summer Playground Program. Mayor Furlong asked staff to re-evaluate increasing fees to help offset
costs.
10) Summer Concert Series.
11) Athletic Field Marking Paint.
After the packet went out Todd Gerhardt and Greg Sticha found additional sources of potential
reductions:
1) Save $40,000 by not hiring additional building inspector.
2) Asking the sheriff’s office to park additional squad car at City Hall would save $15,000.
3) Save $6,800 in copier costs.
These amounts totaled a cost savings of approximately $62,000. The City Manager suggested the City
could live without or delay spending $10,000 in the MIS budget. Tougher decisions would be the delay
in hiring the Fire Chief until March/April for a $15,000 savings. Councilwoman Ernst asked about risks
associated with a delay in that hiring. Mayor Furlong noted that it will be critical to get right person for
the job. With the suggested reductions the levy amount would be somewhere between Scenario #2 and
#3. Mayor Furlong stated he believed there was viable support for Scenario #2 for the preliminary levy
amount which continues to give room for adjustments when more solid numbers are provided. Todd
Gerhardt stated he could support Scenario #2. Councilman McDonald asked about looking into using the
exchange for health insurance in the future, discussed saving $100,000 in the police contract which will
result in the loss of one full time employee, and explained why he felt that the proposed potential service
level/levy reduction ideas felt like a bait and switch. Councilman Laufenburger stated he did not
understand the 3 pages of potential service levy reductions when the reductions offered after Todd
Gerhardt and Greg Sticha’s discussion on Thursday were more conceivable. Staff reiterated that the 3
pages of potential levy reductions was asked for by the council. Councilwoman Ernst asked for more
details on service level cuts. Mayor Furlong asked about the park maintenance salaries being reduced by
Dale Gregory’s retirement and if people felt comfortable with approving Scenario #2 for preliminary
levy. Councilman Laufenburger asked when the CIP will be reviewed and if it affects the preliminary
levy amount. Mayor Furlong asked for a CIP history.
Mayor Furlong adjourned the City Council work session at 8:45 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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