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City 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 COUNCIL WORKSHOP MD UTES June 20, 2000 Page 2 $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. COUNCIL WORKSHOP MINUTES June 20, 2000 Page 3 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. COUNCIL WORKSHOP MINUTES June 20, 2000 Page 4 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 COUNCIL WORKSHOP MINUTES June 20,2000 Page 5 Mayor Harris adjourned the meeting at 7:00 p.m.