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HomeMy WebLinkAboutCity Council - 07/17/2012 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY,JULY 17, 2012 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case CITY STAFF: City Manager Rick Getschow, Police Chief Rob Reynolds, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters Workshop - Heritage Room H I. 2013 BUDGET City Manager Rick Getschow presented a PowerPoint on the proposed 2013 budget. Getschow said operationally, staff is seeking to enhance service levels in the areas of public safety and maintenance of infrastructure. All other services levels will be maintained using the same resources. On an organization level, the goals are to sustain current levels of employee morale and engagement, and to inspire creativity, innovation and strategic thinking. The overall goal is to continue to improve Eden Prairie's fiscal position relative to comparable cities and to preserve Eden Prairie's exceptional image internally and externally. The budget includes an additional police officer(2012) and implementation of the fire duty crew (2012-2013). The budget also includes a 2 percent salary adjustment for employees, which is consistent with public and private sector trends. In addition to another police officer and implementation of the fire duty crew, the proposed budget includes funding for a Community Development tech position to replace the former Administrative Assistant position. Proposed initiatives for 2013 include implementation of Phase 4 of the 20-40-15 program, expansion of the 4th of July event, the addition of life guards at Round Lake, development of a master bike and pedestrian plan, public art and city beautification initiatives, entrance monuments, creation of a point of sale inspection program and community outreach initiatives. Getschow said the original 2013 budget called for a 2.7% increase. After refinement, staff is proposing a 2.5% increase. This translates into a .9 to 1.3% levy increase. Getschow noted that the City realized positive operating results for 2012. Staff recommends that money be used for one time expenditures, including reduction in the debt levy and purchase of equipment for the Community Center. At the close of 2011, staff proposed a general fund budget that included a deficit of $683,500;however, the City has achieved about$100,000 in savings since 2012 through City Council Workshop Minutes July 17, 2012 Page 2 wage and health and dental insurance changes which can be used to close that gap. Staff is also recommending a budgeted increase to development revenue to reduce the deficit. The updated tax levy proposal includes a$29,428,326 general fund budget with a total levy of$30,977,028. This would result in a 1.3% increase in the levy. The tax impact on the median value home is estimated to be from a $5 decrease to a $10 increase, or a .5% decrease to a 1% increase. Staff will have more precise numbers for fiscal disparities contributions, etc., before the City Council approves the preliminary levy on September 4. Expenditures were originally budgeted to increase 2.7% in 2013,but the revised estimate is 2.5%. Getschow noted that the League of Minnesota cities recently completed a study of the fiscal disparities program. Eden Prairie is the second highest contributor to fiscal disparities. Getschow and Mayor Tyra-Lukens have been asked to serve on a task force that will further study the program. Council Member Aho said he thinks the budget direction is good so far. He said there has not been pronounced economic improvement yet, so property taxes need to be kept level. Council Member Case said it is important to keep the levy under 1%. He asked if it would be possible to do that by reducing the discrepancy in forecasting development revenue. Economic Development Manager David Lindahl provided an update on Eden Prairie's invitation to join Greater MSP. Based on a banded approach, using population as a determining factor, Eden Prairie would pay $25,000 per year. Lindahl prepared a brief summary of advantages and disadvantages to membership. Advantages include the opportunity to participate on a 50+ member advisory council. Lindahl said Eden Prairie may also be considered more of a team player if it supports the organization financially. There is some question about the fairness of using the banded approach to determine membership costs. For example, at$25,000 per year Eden Prairie's per capita cost would be $.41. Edina pays $10,000 per year, or$.21 per capita. In addition, Scott County is paying $25,000 per year on behalf of all cities within the county regardless of size. Lindahl has spoken to representatives of Greater MSP about whether or not they are open to a counteroffer on the cost,but they are not willing to depart from the banded approach at this time. Council Member Nelson said she would be willing to pay the same per capita as Edina. Case asked whether or not it would make sense to join at$25,000 and work with the group to make the dues more equitable. Butcher said she sees value in membership in this type of organization. Getschow said it would be helpful to have more information on whether or not the organization's membership is shifting toward private sector membership taking on a greater share of the financial burden. Open Podium - Council Chamber II. OPEN PODIUM A. ABDIMALIK MOHAMED City Council Workshop Minutes July 17, 2012 Page 3 Mohamed said he is an Eden Prairie resident and works with Ka Joog, a Somali organization that focuses on youth programming. Ka Joog is launching a mentoring and employment program for Somali youth in Eden Prairie. Mohamed provided handouts that outline the goals of the program and its budget, which is $1.5 million. Mohamed said he feels Eden Prairie has not done enough for Somalis over the past 15 years, and this program is needed to help Somali youth. Mayor Tyra-Lukens asked if Mohamed had worked with staff in Housing and Community Services to identify possible grants for the program. Mohamed said he has not done that, and asked if he would be given the same advice if he were not an immigrant. Mayor Tyra-Lukens said all groups seeking funding work through the processes set up by the Housing and Community Services division. Council Member Butcher also encouraged Mohamed to work with Molly Koivumaki and her staff. III. ADJOURNMENT