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HomeMy WebLinkAboutCity Council - 05/05/2026 - WorkshopEden Prairie City Council Approved Workshop Minutes 5:30 p.m. Tuesday, May 5, 2026 City Center Heritage Rooms, Council Chambers 8080 Mitchell Road Eden Prairie, MN 55344 ATTENDEES City Council Members: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG Narayanan, and Lisa Toomey City Staff: City Manager Rick Getschow, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks and Recreation Director Amy Markle, Police Chief Matt Sackett, Fire Chief Scott Gerber, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Sara Potter Guest Speakers: Finance Manager Tammy Wilson, Audit Partner Caroline Stutsman, CPA, Senior Planner Beth Novak-Krebs WORKSHOP AGENDA Heritage Rooms 1. 2025 Audit Report and Financial Statements Getschow introduced Finance Manager Tammy Wilson. Wilson explained BerganKDV has been the City’s auditing firm for the past six years. It’s City policy to issue a request for proposal for the audit contract after six years so the financials are reviewed by fresh eyes. Wilson introduced Audit Partner Caroline Stutsman. Stutsman explained BerganKDV’s role is to provide an opinion on the financial statements. It is management’s responsibility to prepare and fairly present the financial statements in accordance with Generally Accepted Accounting Principles (GAAP). BerganKDV issued an unmodified opinion, the highest level available, meaning the auditor believes the financial statements are fairly stated in all material respects. BerganKDV also conducted an audit of internal controls and legal compliance, of which there were no findings. Stutsman displayed a photo of general fund (GF) revenues. GF revenues increased 6.4 percent mainly due to a levy increase, intergovernmental revenue for police and fire pension aid, supplemental employment, and Eden Prairie Community Center revenues. GF expenditures increased 3.8 percent mainly from police and fire wages and benefits and increased facility user charges for Parks. Stutsman displayed a photo of GF budget versus actual results. The general fund balance was budgeted to decrease $550 thousand, it increased $873 thousand due to conservative budgeting in licenses and permits, investments, and charges for services. Actual expenditures were under budget by 1.8 percent. Stutsman explained the GF has had steady increases in operations over the past five years. The City is in compliance with its fund balance policy. Case asked what happens to the unassigned fund balance at the end of the year. Getschow confirmed the majority is transferred to the Capital Investment and Maintenance Fund, allowing the City to have a smaller Capital Improvement Plan (CIP) levy saving taxpayer money. Stutsman explained Water Fund operating revenues increased due to an increase in rates and consumption. Operating expenses increased 3.8 percent due to wages and chemical purchases. Charges for services are covering roughly 57 percent of depreciation. Case asked Ellis if the City usually falls within that range for percent of depreciation covered. Ellis confirmed that is how the City has operated the past 15 years. The next ten years of major capital improvements are funded. Narayanan asked if water consumption always increases with additional residents. Ellis explained its very dependent on weather, a dry month can drive high consumption from extra irrigation. Wilson added the enterprise funds are all in compliance with its fund balance policies. Narayanan asked for more info on the fund balance policies. Ellis explained the fund must have 90 days of operating cash, one year of debt service funds, and two years of capital expenses. Toomey asked how the City’s water rates compare to other cities. Ellis confirmed the City’s water rates are in the bottom half compared to other cities, plus Eden Prairie softens its water. Stutsman next explained Wastewater Fund revenues were increased due to an increase of rates and consumption. This fund fully covers its depreciation expense. Cash and investments have steadily increased over the past five years. The Stormwater Fund operating revenues increased as well. This fund is fully covering depreciation expense. Stormwater funds are typically more project driven, where cash builds up year to year and then is spent on projects. Stutsman displayed the final enterprise fund, Liquor Operations. There is a slight decrease in sales, which is being experienced across the State. The gross profit percentage did increase. Eden Prairie Liquor’s gross profit percentage is higher than two of three comparable metro stores. Stutsman displayed a photo of the City’s tax capacity, tax levy, and tax capacity rate. There was a slight decrease of 0.8 percent in the tax capacity, leading to a slight increase in the tax capacity rate. Narayanan asked if the tax capacity is the value of the City. Getschow confirmed its tied to the value of the City. Case asked how the City compares to other cities. Getschow confirmed Eden Prairie has the third lowest tax capacity rate for all Hennepin County cities with populations above 10 thousand in 2026. The Minneapolis tax capacity rate is 70 percent, Eden Prairie’s is 30 percent. 2. Historical Property Inventory/Status Beth Novak-Krebs explained in 2025 True Friends hired a consultant to conduct an archeological study around Birch Hall at Camp Eden Wood. Birch Hall is in need of improvements to be used year round. The City can apply for a State capital projects grant next year to provide funding assistance for upgrades for accessibility, installing HVAC, and new windows. Toomey asked how much money is needed for Birch Hall renovations. Getschow confirmed True Friends has estimated $1.2 million is needed, but the final amount should be discussed. Case noted the City has made a commitment to honor and value the city’s heritage. Case expressed his desire for the current Council to leave historic buildings in excellent condition so they survive far into the future. Many of the city’s historic buildings receive grants for upkeep and are not a tax burden. Camp Eden Wood rents the property for $1 per year, and have the responsibility to preserve the buildings and the integrity as a national historic register site. The camp is having financial issues and might not be around forever. The City can’t finance the upkeep alone, but can assist in applying for grants. Camp Eden Wood should have some responsibility for building upkeep. Case expressed the solution isn’t going to be found perfectly tonight, but the Council should discuss how to protect the City’s handful of historic properties into the future. Narayanan suggested creating a fund for historic property preservation individuals and businesses can donate to. Getschow noted the closest thing the City has is the proceeds from the sale of historic street signs used to fund historical projects. Toomey agreed funding the Birch Hall renovations should be done, but questioned why the amount of funds needed is so high. Case confirmed the amount of renovations to be funded could be revised. Toomey asked if the City could look for another camp or organization to take over the space. Case confirmed camp organizations are very hard to find. Getschow confirmed there are minimal historical buildings, such as Birch Hall and Holasek House, where a funding source hasn’t been identified. Other historical buildings have identified funding sources. Case noted it can be an item of future discussion for the Council. Novak-Krebs explained the general maintenance occurring at the Cummins-Phipps-Grill House. An eagle scout is building an arbor in front of the peony garden this summer. The Dorenkemper House is undergoing general maintenance in preparation for opening as a bookstore including painting and replacing rotted wood. Case asked if a bathroom is planned to be added at some point. Getschow confirmed it can be added later once the bookstore is up and running. Case asked what utilities have been added. Novak-Krebs confirmed water and sewer have been hooked up. Novak-Krebs explained the Riley Jacques buildings has had much general maintenance including siding, trim, and window sill repairs. Facilities would like to replace the roof on the Riley Jacques buildings and the Dorenkemper house. The City will apply for a grant to help fund the project. Case noted the renter at the Dorenkemper house could potentially assist with the house renovation. Getschow confirmed the lease is annual. Novak-Krebs explained the Smith Douglas More House added five parking stalls in 2025. The interpretive panel was removed as part of the parking expansion, it will be updated and reinstalled. General maintenance and painting the picket fence are scheduled for 2026. The City has been working with Applewood Point to install more vegetation on the border between the properties. Case noted Holasek House could be parceled off of Camp Eden Wood and used for a different purpose outside of the camp. Getschow added he and Markle have spent some time on the nearby flood plane. Markle confirmed in heavy rain the water will reach right up to the Holasek House. The rest of the camp is more elevated and is not in danger of the flood plane. Case thanked Novak-Krebs for bringing awareness to the City’s historic properties. Council Chambers 3. Open Podium 4. Adjournment