HomeMy WebLinkAboutCity Council - 07/16/2013 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY,JULY 16, 2013 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. 2014-2015 BUDGET
Budget Overview
Getschow presented the proposed 2014/2015 budget prepared by staff for the City Council's
consideration. The proposed budget includes a 3.9% increase for 2014 and 0.7% increase for
2015. The proposed levy increase for 2014 is 1.8%. The proposed levy and budget are as
follows:
Tax Lew
2013 2014 2015
Adopted Proposed Difference Percent Proposed Difference Percent
Fund 12/4/2012 7/16/2013 from 2012 Change 7/16/2013 from 2012 Change
General Fund $29,428,326 $ 30,307,276 $ 878,950 3.0% $ 31,216,494 $ 909,218 3.0%
Capital Improvement Fund 89,894 92,591 2,697 3.0% 95,369 2,778 3.0%
Debt Service 1,796,100 1,735,100 (61,000) (3.4%) 1,025,100 (710,000) (40.9%)
Market Value Debt 1,235,000 1,045,000 (190,000) (15.4%) 900,000 (145,000) (13.9%)
Sub-total 32,549,320 33,179,967 630,647 1.9% 33,236,963 56,996 0.2%
Less Fiscal Dispartiy Distribution (1,676,800) (1,766,830) (90,030) 5.4% (1,766,830) - 0.0%
Total Levy $30,872,520 $ 31,413,137 $ 540,617 1.8% $ 31,470,133 $ 56,996 0.2%
Budget
2013 2014 2015
Adopted Proposed Difference Percent Proposed Difference Percent
12/4/2012 7/16/2013 from 2013 Change 7/16/2013 from 2014 Change
General Fund $ 39,289,585 $ 41,179,975 $ 1,890,390 4.8% $ 42,353,890 $ 1,173,915 2.9%
Debt Budget 3,031,100 2,780,100 (251,000) (8.3%) 1,925,100 (855,000) (30.8%)
Capital hnprovement Plan Levy 89,894 92,591 2,697 3.0% 95,369 2,778 3.0%
Total City Budget $ 42,410,579 $ 44,052,666 $ 1,642,087 3.9% $ 44,374,359 $ 321,693 0.7%
City Council Workshop Minutes
July 16,2013
Page 2
Getschow said goals for the 2014-2015 budget include:
• Enhancing service levels in public safety and the maintenance of infrastructure
• Preserving other city service levels using the same resources
• Sustaining current levels of employee morale and engagement
• Inspiring creativity, innovation and strategic thinking
• Continuing to improve Eden Prairie's relative position in fiscal comparisons with
comparable cities
• Preserving Eden Prairie's exceptional image internally and externally
Getschow said several measures passed by the state legislature, such as the sales tax
exemption, will impact the City budget. He said the new levy limits will not impact Eden
Prairie at this time. Police and Fire aid from the state were increased. Staff estimates that the
City of Eden Prairie will receive about $90,000 more annually.
Getschow also described cost-saving City initiatives, including savings from from the 20-40-
15 conservation program, a fire inspection program that partners Eden Prairie with Richfield
and Edina,joint purchasing agreements and service delivery arrangements, and receipt of
several grants. Getschow provided examples of initiatives and innovations that make City
services more efficient and accessible, including online permitting, mobile technology, use of
snow plowing/road and weather information systems, and City Connect and See Click Fix --
web-based programs that promote citizen engagement.
Getschow reviewed areas that impact the proposed revenue budget, including development
revenue increases, Community Center revenue increases, anticipated revenue from the
proposed point-of-sale housing inspection program, fire pension aid increases from the state,
and investment revenue decreases.
Getschow said expenditures are currently proposed to increase 4.8% in 2014 and 2.9% in
2015. He noted that the City of Eden Prairie service-based organization and 6 1% of the
proposed budget is wages and benefits. The budget proposal includes a 2% average wage
increase for employees, including step increases (3.1% total) for 2014. The 2015 budget calls
for 2.25% average wage increase, including step increases (2.6%). The hourly wage for the
fire duty crew is proposed to increase from$8.50 to $10 in 2014. Getschow said this higher
hourly rate is more in line with nearby communities. Getschow said two areas with potential
impacts still have unknowns: health insurance premium costs and federal health care reform.
Next steps in the budget process are online budget engagement using City Connect starting in
July; adoption of the preliminary levy by the council in September; further council/staff
budget discussions in October and November; and finally the budget public meeting and
adoption of the final budget and tax levy in December.
Budget Feedback
Council Member Nelson said a 1.8% increase is higher than she wants. She said that number
doubles last year's increase and she believes it may be higher than the rate of inflation. She
said something under 1.5% would be better. Council Member Case said he is okay with
1.8%. He asked if inflation were higher than 1.8%, would a higher levy be okay. Mayor
City Council Workshop Minutes
July 16,2013
Page 3
Tyra-Lukens said staff is always looking to keep the budget and levy as low as possible. She
said she does not see anything in this budget she would want to cut. Council Member Aho
said he would like to see a smaller increase, and suggested staff provide more detail on what
is driving the increase. Nelson said she feels she needs more information, and she also wants
to keep service levels where they are. Council Member Butcher Wickstrom said it is
important to remember residents have indicated they do not want a reduction in services, and
she noted that other cities are proposing higher increases.
Proposed Point-of-Sale Inspection Program
Building Official Kevin Schmieg provided details of the proposed point-of-sale (POS)
inspection program. He said the City's policy has been to proactively develop property
maintenance codes to decrease the risk of blight and maintain property values. The next step
in Eden Prairie's proposed progression of codes is point-of-sale inspections. Schmieg said
POS inspections help to prevent deterioration of housing stock and protect general health,
safety and welfare. While many people have the impression that Eden Prairie is a new
community, in fact, the average age of a single family home is 28 years.
Schmieg said there are several options for administering a POS inspection program. They can
be performed by in-house (City) inspectors,be done completely by independent contractors,
or through a combined approach. Schmieg recommends using a combination approach
similar to that used by Bloomington. Residents can choose either a licensed evaluator or a
City Inspector. This maintains a relatively stable and flexible revenue stream. Schmieg said
the fee supported program would be expected to have a neutral budget impact with the
exception of start-up costs. Proposed fees would be $185 for city-conducted inspections and
a $30 filing fee for independent evaluators. Schmieg said using the number of listings in
2012 (1241) the City could anticipate revenue of about$99,000 in 2014. Schmieg said staff
has contacted realtors and gathered information on what they would like a POS program to
look like. In addition, an appeals process would be incorporated in the program.
Aho asked if staff anticipates any problems with banks that are trying to sell foreclosed
homes that are distressed. Chief Esbensen said he believes the banks will comply with
the regulations in order to get a return on their money. Mayor Tyra-Lukens asked how the
City can ensure the required inspections are actually taking place. Esbensen said the
ordinance would include penalties for violation, most likely a misdemeanor charge. City
Attorney Rosow said a certificate of inspection would be required to file a deed. Aho
suggested reaching out to boards of realty for input before passing an ordinance.
Open Podium - Council Chamber
II. OPEN PODIUM
III. ADJOURNMENT