HomeMy WebLinkAboutCity Council - 08/07/2001 - Workshop APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM
TUESDAY,AUGUST 7,2001 5:00-6:55 PM, CITY CENTER
HERITAGE ROOM H
CITY COUNCIL:
Mayor Jean Harris, Councilmembers Sherry Butcher,Ron Case,Jan Mosman, and Nancy Tyra-
Lukens
CITY STAFF:
Acting City Manager and Director of Financial Services and Community Development Donald
Uram,Public Safety Director Jim Clark,Public Works Services Director Eugene Dietz,Director
of Parks and Recreation Services Bob Lambert,Director of Assessing Steve Sinell,Finance
Operations Manager Sue Kotchevar, Fire Chief Spencer Conrad,Manager of Human Resources
and Records Services Michael Barone, City Attorney Ric Rosow, and Recorder Lorene McWaters
I. CALL MEETING TO ORDER—MAYOR JEAN HARRIS
H. APPROVAL OF AGENDA
III. YEARS 2002/2003 BUDGET WORKSHOP
Uram reviewed the Proposed 2002/2003 Budget. On June 30, Governor Ventura signed
the Omnibus Tax Bill,which has been called"one of the most significant tax bills in the
history of the Minnesota Legislature." The bill includes the following changes,which
will impact property taxes in Eden Prairie: Class Rate Compression, Levy Limits,
Elimination of HACA,Elimination of the Transit Operating Levy, State Takeover of the
General Education Levy.
Uram explained that details of the tax changes were received later than usual, so final
numbers have not been calculated. However based on 1999 and 2000,when levy limits
were in place, staff used a levy increase estimate of 6%. Staff estimates the 2002 budget
at approximately$27 million,with an additional$700,000 for vehicles and equipment
and$2.9 million to be levied for debt service.
Revenue sources are estimated to remain stable with the exception of building permits
revenues,which are expected to be slightly lower than 2001.
General operating fund expenditures are estimated at$26.38 million, a 6.4%increase
over 2001. Elections,Legal Counsel and Employee Benefits and Wages expenses are
expected to increase. Approximately$733,000 is expected to be transferred from the
liquor fund. The proposed budget also includes a transfer to the Capital Improvement
Program of approximately$718,000.
CITY COUNCIL WORKSHOP NHNUTES
August 7,2001
Page 2
Approximately$7.6 million is expected to be taken in to the Utility Enterprise Fund in
2002, about the same as in 2001. Net income is expected to be about$546,000. No
changes are expected in fee schedules.
Liquor sales are expected to increase from$7.65 million to $8.3 million in 2002.
However,Uram noted that any increase in sales will be dependent on whether or not
"wine in grocery stores" legislation passes. Operating expenses are expected to increase
from$1.1 million to $1.3 million.
Councilmember Butcher asked how taxes will now be divided or"what the new pie will
look like." City Assessor Sinell said that House research indicates approximately 50%of
taxes will go to the county, 29%to the City, 20%to schools, and 8%to other entities
(such as the Met Council). Uram said it is important to remember that even though the
City's portion of the"tax pie"is increasing,the total bill to tax payers is expected to go
down.
Uram said staff will continue to collect information and run calculations in order to come
back to the September 4 meeting with specific numbers for the Council. Uram said he
has requested, and has been granted, an extension to September 19 to certify the levy
since limits from the state may not be set until as late as September 1.
Although a truth-in-taxation hearing is no longer required by law,Uram recommended
scheduling one and asked for Council input on this topic. Councilmember Tyra-Lukens
suggested holding a truth-in-taxation hearing as part of a regular Council Meeting.
Councilmember Case said he feels it is important to hold a hearing, since it serves as a
barometer of how the community feels about taxes.
IV. OTHER TOPICS
V COUNCIL FORUM
VI. ADJOURNMENT
The meeting adjourned at 8:40 p.m.