WS 2014 11 24
CHANHASSEN CITY COUNCIL
WORK SESSION
NOVEMBER 24, 2014
Mayor Furlong called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Laufenburger, Councilwoman Ernst,
Councilwoman Tjornhom, and Councilman McDonald
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Paul Oehme, Kate Aanenson, Todd Hoffman,
Greg Sticha, Chief Don Johnson
COUNCIL MEMBERS ELECT:
Elise Ryan and Dan Campion
PUBLIC PRESENT:
John Corey, 6409 Oxbow Bend
FIRE DEPARTMENT PENSION FUND UPDATE.
Todd Gerhardt provided background information on the fire relief pension fund. Greg Sticha reviewed
highlights of the power point presentation that was given in July 28, 2014 including funding types,
pension benefit history since 2008, and city employee wage history for comparative purposes. He
reviewed a graph showing comparisons with KFS cities and surrounding cities and recommended
increasing the lump sum rate to $6,000 per year of service. Councilman Laufenburger asked about the
City of Victoria’s current lump sum of $2,300. Mayor Furlong asked for clarification on the city’s
required contribution numbers and percentages. Councilman Laufenburger asked for clarification on the
rate of return numbers. Councilman McDonald asked if council determined to be at the 81% funded
percentage as opposed to the required 70% minimum. Mayor Furlong explained that the question is
whether the council wants to raise the benefit level to $6,000 per year of service and discussed that the
funding percentage of 80% seems reasonable for planning purposes. Todd Gerhardt recommended
adjustments be done as practice and not policy. Councilman McDonald asked Chief Johnson to discuss if
this increase will keep Chanhassen competitive in the marketplace. Greg Sticha explained that the next
step is having the city attorney draft an amendment to the By-Laws that will be reviewed by the fire
department before returning to the City Council.
2015 BUDGET DISCUSSION.
Todd Gerhardt noted that health insurance will decrease from what was projected. Mayor Furlong asked
how difficult it is for city employees to switch insurance carriers every few years. Greg Sticha reviewed
changes that have occurred since the preliminary levy was set in September resulting in staff
recommending that the levy be $32,000 less than the preliminary levy. Mayor Furlong asked the
Community Development Director to elaborate on the need for reinstatement of the Planner 1 position
beginning June, 2015. Councilman Laufenburger asked about adjustments that were made since setting
the preliminary levy, asked for per capita spending numbers and what the tax rate would be by reducing
the levy by $32,000. Councilwoman Ernst asked why permit revenue numbers weren’t adjusted to more
accurately reflect actual numbers. Greg Sticha explained the process for the Truth in Taxation hearing on
stth
December 1 and setting final levy on December 8. Councilman Laufenburger elaborated on increasing
permit revenues, that effect on the budget and the sealcoating program. Councilwoman Ernst asked for
clarification on the surplus associated with the revolving assessment fund.
Mayor Furlong adjourned the work session meeting at 6:50 p.m.
Submitted by Todd Gerhardt, City Manager
Prepared by Nann Opheim