WS 2015 12 07
CHANHASSEN CITY COUNCIL
WORK SESSION
DECEMBER 7, 2015
Mayor Laufenburger called the work session to order at 7:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Laufenburger, Councilman McDonald,
Councilwoman Tjornhom, and Councilwoman Ryan
COUNCIL MEMBERS ABSENT:
Councilman Campion
STAFF PRESENT:
Todd Gerhardt, Chelsea Petersen, Greg Sticha and Richard Rice
CONTINUED DISCUSSION OF THE PROPOSED 2016 BUDGET.
Greg Sticha discussed items that changed since the last budget discussion which include savings
from health care coverage and an increase in portable restroom service for the park and rec
department. Councilman McDonald expressed support for keeping the 2.7 percent increase for
wages. Todd Gerhardt explained how the City’s performance based system for wage increase
works. Councilwoman Tjornhom agreed with Councilman McDonald that she did not believe
council gave direction to staff to lower the wage increase from 2.7 to 2.5 percent.
Councilwoman Ryan asked how wages impact the City’s recruitment process. Councilwoman
Tjornhom asked how health care costs going up for employees compare to other communities.
Mayor Laufenburger explained that consensus was to keep the employee increase at 2.7 percent
and discussed the $14,000 savings from health care costs. He asked for feedback on using the
$6,000 difference to go out for bid to change the portable restroom provider. Councilwoman
Ryan stated she was not ready to commit to the $6,000 being used for a portable restroom
provider. Greg Sticha explained why the park and rec department budget increased because of
reallocation of support staff due to Karen Engelhardt’s retirement. Councilman McDonald asked
about the option of keeping the $6,000 excess money unallocated. Mayor Laufenburger asked if
budget funds are moved between departments. Todd Gerhardt explained that he constantly
reminds department heads to stay within or under budget. Council members discussed the use
of $6,000 for the park and rec department or look at reducing the number of portable bathrooms
to meet the current amount allocated under park and rec. Councilwoman Ryan was not
interested in using the $6,000 for park and rec. Councilman McDonald asked for more
information on the issue. Councilwoman Tjornhom stated she could support putting the $6,000
to park and rec. Mayor Laufenburger stated this issue falls under the purview of city staff to
decide where the money should be used. Councilwoman Ryan supported using the $6,000 to
lower the levy. In talking about revenue and year end surpluses over the last 8 years Mayor
Laufenburger asked if staff was comfortable with the average surplus of around $500,000 per
year. His question to staff was if the surplus could be lowered and if council was comfortable
with that amount of surplus. Staff explained that surplus money in the past has been used for
road projects and the picnic shelter initiative. Consensus of council members was to continue to
City Council Work Session Summary – December 7, 2015
use surplus money to fund street projects and picnic shelter construction. Mayor Laufenburger
discussed reducing the levy based on a possible surplus of $1 million dollars in 2016. He
reviewed the slide showing total levy versus new growth and asked for feedback about reducing
the total levy below new growth. Councilwoman Tjornhom asked about the use of surplus
money and the effect on the City’s bond rating. Mayor Laufenburger asked about increasing the
source of revenue to decrease the effect on property taxes. He asked council members to
provide feedback to the city manager regarding the following two items: how they feel about a
levy reduction or budget reduction of $6,000 and not assigning it to the park and rec department,
and how they feel about following a similar trend since 2010 of lowering total levy versus new
growth.
Mayor Laufenburger adjourned the work session at 8:45 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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