HomeMy WebLinkAboutCity Council - 06/20/2000 - Workshop APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM
TUESDAY,JUNE 20,2000 5:00-6:55 PM, CITY CENTER
HERITAGE ROOM III
CITY COUNCIL:
Mayor Jean Harris, Councilmembers Sherry Butcher,Ronald Case, and Nancy Tyra-Lukens
CITY COUNCIL STAFF:
City Manager Chris Enger, Parks & Recreation Services Director Bob Lambert, Public Safety
Director Jim Clark, Public Works Services Director Eugene Dietz, City Engineer Al Gray,
Community Development and Financial Services Director Don Uram, Management Services
Director Natalie Swaggert, and Recorder Lorene McWaters
I. CALL MEETING TO ORDER—MAYOR JEAN HARRIS
Mayor Harris called the meeting to order at 5:25 p.m.
II. APPROVAL OF AGENDA
III. 2001 LEVY
City Manager Chris Enger introduced the discussion of the 2001 levy. Enger noted that
the legislature has removed levy limits,but there has been speculation by the Municipal
Legislative Commission Operating Committee that limits will return at some point. The
MLC has indicated that the legislature feels that caps are necessary and is waiting for
cities to "fail"to reign in increases before reinstating limits. Enger said the purpose of
this portion of the workshop was to begin to consider the City's 2001 levy as well as the
Southwest Metro Transit Commission(SWMTC) levy. Since 1998 when levy limits
where initiated,the City has increased SWMTC's levy by the same percent as the City's.
Community Development and Financial Services Director Don Uram said that the issue
to be decided at the workshop was whether or not to continue the local levy option for
SWMTC, and secondly at what level.
Uram also presented some figures to demonstrate how levy taxes affect Eden Prairie
residents. Based on a median home value of$202,400,projected City taxes payable in
2001 is $690. This is less than a one percent increase over taxes payable in 2000. By
increasing the levy by$260,000,the percent increase to the median value home would be
the same as it was in 2000 (about 3 percent). This gives the City the opportunity to
increase funding levels without significantly impacting the median value homeowner.
With a levy increase of 6 percent, Case asked why the average property owner's taxes
went up only 2.6 percent. Uram explained that it is a function of increased tax capacity
created by new commercial/industrial construction,which helps offset residential
property taxes. For example,market values have gone up from$2.3 billion to more than
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$5 billion since 1990,while tax capacity dipped in the early 90s and has steadily
increased since then to in excess of$100 million in Pay 2001.
The City's ability to increase the tax levy without affecting the average homeowner,
provides flexibility in funding Capital Improvement projects. Enger noted that Eden
Prairie lost its bid for the new Best Buy headquarters in part due to worsening traffic
gridlock in Eden Prairie,particularly in the Golden Triangle. The Council may decide to
use these additional funds for transportation purposes.
SWMT Director Len Simich outlined some of the philosophies and principles guiding the
Commission's budget requests. He noted that at this time, SWMT is asking only for a
commitment to levy the dollars locally.
Simich noted that SWMT does not currently have the budget to increase services. There
are approximately 1,000 denials of service a month on dial-a-ride requests. SWMT has
shifted money away from dial-a-ride and into other high-demand services, such as
express bus routes. Simich also stated that they don't make money on their services
(about 50 percent recovery on a full bus).Rather the service is considered a necessary
part of the region's infrastructure. He further said that the Commission does not want to
make an issue of which city is paying for what.
Simich said that the SWMTC estimates it will find itself$700,000 to $1 million shy of
their projected budget needs. He noted that there was a$1 million discrepancy between
what could have been taxed by member communities (Eden Prairie, Chaska and
Chanhassen) according to the state in 2000 and what was actually taxed. Simich also
stated that he feels SWMT is falling behind other metro-area public transportation
providers in part due to budget shortfalls.
Councilmember Case questioned whether or not it is a good idea for Eden Prairie to
automatically finance the same percent of the SWMTC budget each year regardless of
services and benefits received. He noted that Eden Prairie is funding considerably more
than Chaska and Chanhassen. Uram answered that the only decision the Council needed
to make at the workshop was whether or not to continue the local transit levy option.
Uram stated that every percent increase in Eden Prairie's levy would translate into an
additional$30,000 for SWMT. Case stated that it seems unfair to Eden Prairie if the
other communities don't increase their SWMT levy to match their general levy increases
as well.
Councilmember Nancy Tyra-Lukens suggested scheduling another Council Workshop
this summer to discuss the philosophical issues facing SWMTC and Eden Prairie.
Councilmembers present agreed that this was a good idea.
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IV. SPECIAL ASSESSMENTS
Public Works Services Director Gene Dietz provided information on what the Council
could expect to hear at the Highview/Lakeland Terrace special assessment public hearing.
Dietz provided copies of the revised Special Assessment Policy,which included an
overview of points of law as opposed to policies.
Dietz said he and his staff have heard of a lot of hardships endured by Highview residents
due to the lack of sewers. The current assessment cap is $19,600 per lot, and the
estimated cost per lot for the water and sewer improvements is $33,000. This means the
City will pay more per lot(about$14,000 each)for these improvement than for any other
special assessment in the City's history. Dietz also noted that the upcoming special
assessment project for the Cedar Forest neighborhood is expected to cost around$25,160
per lot.
Case asked what percent of residents had signed the petition for the Highview project.
City Engineer Al Gray said that more than 50 percent had signed the petition. Gray also
said that since properties have been added to the project since the original petition was
submitted, there may no longer be enough who are in favor of the project to support a
valid petition. Therefore, it will be necessary to proceed as if the project were a council
initiative.
Gray noted that some residents of Lakeland Terrace(which is getting only sewer and
utilities as part of this project)were initially opposed to the project because of the special
assessment cap. He said there may now be concern expressed that the cost of the
sewer/utilities alone is $19,060,just$500 under the$19,600 cap. He stated that the
$33,000 special assessment figure was reached by averaging the cost for both the
Lakeland Terrace and Highview projects.
Enger asked for clarification of how unique special assessment projects are approached.
He also stated that it would be productive to keep the Council informed of any upcoming
special assessment projects that are unique, controversial or particularly expensive.
It was agreed that another Council Workshop addressing special assessment issues would
be valuable. A date for this workshop will be determined.
V. OTHER BUSINESS
VI. COUNCIL FORUM
Ali Mohamoud addressed the council on issues involving Somali immigrants living in
Eden Prairie. Mohamoud introduced himself as an employee of the Eden Prairie School
District and a new resident of Eden Prairie. Also in attendance was Mohamed Arab,
Director of Somali Family Services. Mohamoud stated that he has worked with
Councilmember Ron Case at Central Middle School and that he requested to address the
Council at Councilmember Case's suggestion.
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Mohamoud said there are currently 150 Somali students in the Eden Prairie schools and
that number is growing. He noted there is significant secondary migration by Somalis to
Minnesota. With the rapid growth of the Somali community in Eden Prairie,Mohamoud
said he felt he must address those in authority to bring issues to their attention.
Among those issues, said Mohamoud, is that Islam(the religion practiced by most
Somalis)prohibits paying interest. Therefore, Somalis face many problems buying
homes and automobiles.
Mohamoud noted that many Somali students have not had a day of education before
coming to the United States. In addition, Islamic law prohibits many forms of music and
art,which are commonly taught in the public schools. He said that the Eden Prairie
School District has been good about meeting with and listening to concerns of the Somali
community. As a liaison for the Somali community,he has been able to work with the
School District to find education alternatives for subjects that pose problems with Islamic
law.
Councilmember Case asked Mohamoud what he specifically was asking of the Council.
Mohamoud stated that he wants to be part of the solution in Eden Prairie, and that he
would like to create some sort of a community outreach program for the Somali
community.
Mayor Harris asked how many Somalis currently live in Eden Prairie. Mohamoud
estimated about 400 to 500.
Harris asked if Mohamoud had been in touch with Familink, a resource provider that
services Eden Prairie, Edina,Richfield and Bloomington. Mohamed Arab confirmed that
he has worked with Nancy Holden,the Eden Prairie contact for Familink. Hams said she
felt that many of the concerns expressed by Mohamoud fit within the framework of the
school district. She noted that at the April joint School Board/Council meeting,the
Board stated that they are responsible for addressing many of these issues. Mohamoud
agreed that while some of the issues are related to education,there are other larger issues
involved.
Councilmember Butcher asked if Mohamoud had a specific program in mind. She
further stated that funding for some programs might be available through Local
Collaborative Time Study(LCTS) and the Eden Prairie Foundation. Mohamoud said it
was his understanding that he would have to be part of a non-profit organization to apply
for these types of funds.He also said he would like to ask the council to hire someone to
act as liaison.
Mayor Harris asked Mohamoud to put his ideas in writing and submit them to her or City
Manager Chris Enger. Councilmember Case suggested that David Lindahl might be a
good contact within the City. Harris agreed that this was a good idea,but reiterated she
would like to see Mohamoud's proposal on paper.
VH. ADJOURNMENT
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Mayor Harris adjourned the meeting at 7:00 p.m.