CC WS 2019 09 23CHANHASSEN CITY COUNCIL
WORK SESSION
SEPTEMBER 23, 2019
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Tjornhom, Councilman
McDonald, Councilman Campion, and Councilwoman Coleman
STAFF PRESENT: Todd Gerhardt, Jake Foster, Kate Aanenson, Jason Wedel, Todd Hoffman,
Greg Sticha, and Chief Don Johnson
PUBLIC PRESENT: None.
KEY FINANCIAL STRATEGY: CONDUCT A THOROUGH REVIEW OF ALL
UTILITY FUND FEES.
Greg Sticha presented background information on the key financial strategy before introducing
Jessica Cook and Meghan with Ehlers and Associates who reviewed highlights of the utility rate
study and development fees. Jessica Cook discussed rate setting policies, rate study results, and
an overview of water, sewer and storm utilities. Mayor Ryan asked to see how the increase in
street improvement projects affects utilities. Jessica Cook continued with review of graphs
comparing Chanhassen to surrounding communities and KFS cities before discussing
development fee comparisons for single family homes, industrial, and multi-family. Councilman
Campion asked for clarification of how hook up fees are established. Jessica Cook reviewed
options for determining development fees and the effect on sample utility bills with the different
options. Greg Sticha and Jessica Cook noted they are looking for feedback from council
members on how to proceed with setting or changing policies. Mayor Ryan asked about push
back from developers before asking council for feedback on whether council is comfortable with
the projected rate increases for water, storm water and sewer. After comments from council
members it was decided to keep the rate increase as proposed. In discussing policy changes
Councilman McDonald questioned if the City is looking to change policies to appeal to national
developers versus local small developers. It was decided to bring the policy discussion back to a
future work session.
DISCUSS CERTIFICATION OF MAXIMUM PROPOSED PRELIMINARY LEVY TO
CARVER COUNTY AUDITOR.
Greg Sticha reviewed staff’s proposed recommendation of scenario 1 which is consistent with
new growth in setting the preliminary 2020 levy. Mayor Ryan clarified that scenario 3 is
scenario 1 plus additional service levels which is a new proposal for council but would give the
most options for increasing service levels moving forward prior to setting the final levy. Greg
Sticha reviewed the graph for full time employee comparisons with other key financial strategy
City Council Work Session – September 23, 2019
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cities. Councilman Campion asked for clarification of what services could be provided that are
not being provided presently. Greg Sticha explained that staff is recommending scenario 3 to
allow for further discussion on how to allocate an increase in the final levy.
Mayor Ryan adjourned the work session at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim