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HomeMy WebLinkAboutCity Council - 12/01/2009 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, DECEMBER 1, 2009 CITY CENTER 5:00—6:25 PM, HERITAGE ROOM II 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad, and Kathy Nelson CITY STAFF: City Manager Scott Neal, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters Heritage Room H I. PROPOSED 2010 BUDGET City Manager Scott Neal presented a PowerPoint that reviews trends related to the City budget from 2001 to today. The presentation tracks changes in the City's operations budget, tax levy, debt service budget,population and number of households, implicit price deflator, estimated market value, tax capacity and tax cap rate. The presentation also compares of Eden Prairie's city tax to other Municipal Legislative Commission member cities from 2001 to 2009. Finance Manager Sue Kotchevar previewed the PowerPoint that will be presented during the budget Public Meeting at the City Council Meeting. The presentation outlines staff's most recent budget proposal, dated December 1, 2009, which has been revised with input from Council Members. In the current budget proposal, the tax impact on all types of properties is expected to decrease slightly. The median value residential home would see about a $14 decrease in City taxes. Apartment buildings would see about a $177 decrease. Commercial properties would see about a $27 decrease. Neal said the December 1 budget proposal incorporates revisions the Council majority indicated they wanted to see, including lowering the amount of Budget Stabilization Fund used, maintaining at least a flat tax levy, and lowered spending levels. Neal said if this budget is approved, staff will present a list of proposed operating budget cuts of about $250,000 at the January 19 City Council meeting. The proposed budget requires deferral of two staff proposals for enhanced service levels —one from the Fire Department and one from the Police Department. It also includes no cost of living increase in employee wages. Neal said that while he believes employees are willing to accept no cost of living increase, they may be less understanding of elimination of step increases. Neal said he sees step increases as a different kind of commitment. The program brings employee wages to market level, and employees are told they will receive step increases, assuming they are performing well, when they are hired. Neal recommends including step increases in the 2010 budget. The total cost is about$52,000. Neal said he believes staff can identify sufficient funding to cover the step increases. Council Workshop Minutes December 1, 2009 Page 2 Nelson said she feels the step increases were promised to employees when they were hired. She said it does not represent a lot of money and she supports including them in the 2010 budget. Duckstad said he also is in favor of including the step increases. Nelson asked why the $250,000 in spending reductions will be presented on January 19 rather than December 15. Neal said it provides the Council with sufficient time to approve a budget and allows staff time to identify specific areas of reduction. Duckstad asked whether or not a 2011 budget will be discussed tonight, since the City has typically operated on a two-year budget cycle. Neal said there is no statutory requirement to have a two-year budget, although it has been the City's practice. Neal said there are many uncertainties at the state level, and how those issues are resolved will impact the City's 2011 budget. Council Chamber II. OPEN PODIUM A. Pat MulOueeny— Special Service Districts Pat Mulqueeny, president of the Eden Prairie Chamber of Commerce, said the Chamber is concerned about the City's special services district policy. He said it was the Chamber's understanding that participation in special service districts would be voluntary; however, it appears membership for businesses with new development projects will be mandatory. He said this policy seems heavy-handed, especially since businesses are being asked to agree to something for which the terms will not be known until later. Mulqueeny suggested the City bring together businesses for a discussion on how special service districts can be implemented in a fair manner. B. Deb Taylor—Senior Community Services Deb Taylor said she and Leeann Eidman are both Senior Community Services staff members. She said they are available to answer any questions the City Council may have about the services they provide for seniors in Eden Prairie. C. Lydia Kim— Teens Alone Lydia Kim said she is the executive director of Teens Alone. She said they have been serving the community for 18 years. Kim reviewed the different services of three organizations providing services to Eden Prairie adolescents. She said the specific goal of Teens Alone is to help keep teens in school. She asked the City Council to maintain the organization's funding in 2010. D. Pat Dale— Storefront Group Pat Dale said that Storefront Group also serves teens in Eden Prairie. He said that none of their services overlap those provided by Teens Alone and the YMCA, although they are all in the youth diversion business. III. ADJOURNMENT