City Council - 08/17/2004 - Workshop APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM
TUESDAY,AUGUST 17,2004 CITY CENTER
5:00—6:25 PM,HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL:
Mayor Nancy Tyra-Lukens, Councilmembers Sherry Butcher, Ron Case, Jan Mosman, and
Philip Young
CITY STAFF:
City Manager Scott Neal,Police Chief Dan Carlson,Fire Chief George Esbensen, Public Works
Director Eugene Dietz,Parks and Recreation Director Bob Lambert, Community Development
Director Janet Jeremiah, Communications Manager Pat Brink, Finance Manager Sue Kotchevar,
Assistant to the City Manager Michael Barone, City Attorney Ric Rosow, and Recorder Lorene
McWaters
Heritage Room H
I. 2005 BUDGET
Finance Manager Sue Kotchevar presented an overview of the 2005 budget. She said
Council will be asked to certify the levy at the September 7 Council Meeting, the annual
Truth-in-Taxation Hearing will be held on December 6, and certification of the final Levy
and adoption of the budget will take place at the December 21 Council Meeting. Specific
budget goals include the following:
• Align the budget with the strategic plan
• Maintain service levels
• Achieve reasonable debt impacts
• Achieve a balanced budget without Market Value Homestead Credit(MVHC)
revenue from the state
• Support fleet maintenance and replacement
• Plan and budget for construction of Fire Station#4
Kotchevar said no levy limits are in place for 2005 or 2006, and although MVHC will not
be funded in 2005 the State has indicated it will be funded for 2006.
General fund revenues are expected to increase from$31,513,000 in 2004 to $32,440,000
in 2005. This is a 2.9 percent increase. General fund expenditures will go from
$28,214,000 in 2004 to $29,267,000 in 2005. This is a 3.7 percent increase. The debt
levy will go from$1,975,000 to $1,915,000.
Council Workshop Minutes
August 17, 2004
Page 2
The median value home is estimated at$310,100,which will result in a 10.5 percent
taxable value increase for residences. Apartments will see a 7.3 percent taxable value
increase and commercial property will see a 2.3 percent increase.
Kotchevar said objectives for the utility enterprise are to maintain a financially stable rate
structure, review rates every budget cycle, and to meet or exceed safe drinking water
standards. The utility fund is expected to see a net increase in assets of 14 percent in
2005. Kotchevar said that the liquor enterprise fund is expected to transfer$759,000 to
the CIP in 2005.
Kotchevar asked Council if they wished to move the Truth-in-Taxation Hearing on
December 6 to an earlier time, such as 5:30. Councilmember Young said it would be
harder for him to make that time,but that he can arrange his schedule. He said 5:30
would probably be a more convenient time for staff. Mayor Tyra-Lukens suggested
leaving it at 7:00, if it might be a problem for Young. Mosman suggested trying it at 5:30
this year, to see if more residents attend. It was agreed to move the hearing to 5:30 as a
trial run this year.
Tyra-Lukens asked about the maximum goal level for the utility fund. Public Works
Director Gene Dietz said the goal is to maintain$1.5 million in net assets. He said since
the last increase in rates, the unreserved balance has been growing and is now at 2.5
million in unreserved. Dietz noted there have been no sewer or water increases for five
years. He said they probably won't need to request an increase for at least a couple of
years. Dietz also noted the City collects between$160,000 and$200,000 per year in
water surcharges.
Councilmember Case noted that City Manager Scott Neal sent copies of the draft budget
to the City's state legislators. He said this is a good practice. Neal said he will also send
the draft budget to the press.
Councilmember Butcher said the City seems to be in very good financial shape,
considering some budget surprises from the state over the past couple of years.
Council Chamber
II. OPEN FORUM
No one was scheduled to speak at Open Forum.
III. OPEN PODIUM
No one requested to speak at Open Podium.
IV. ADJOURNMENT