City Council - 05/20/2003 - Workshop APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM
TUESDAY,MAY 20, 2003 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, and Jan Mosman, and
Philip Young
CITY STAFF:
City Manager Scott Neal, Police Chief Dan Carlson,Fire Chief George Esbensen, Public Works
Director Eugene Dietz,Director of Parks and Recreation Bob Lambert, Management and Budget
Director Don Uram, City Attorney Ric Rosow, Manager of Finance Sue Kotchevar, and Recorder
Lorene McWaters
Heritage Room H
I. CALL MEETING TO ORDER
II. APPROVAL OF AGENDA
III. DISCUSSION TOPICS
A. 2004-2005 BUDGET PLANNING
Finance Director Don Uram gave a presentation that included an overview of the
City's past and current budget policies, current fiscal status, and considerations
for the 2004-2005 budget.
Uram noted that since the legislature has not made final decisions on major
budget issues, staff has been working with incomplete information and has been
forced to make some assumptions.
Uram said the 1996 budget model forecasted significant deficits,ranging from
$1.2 million in 1996 to$7.2 million in 2005. In response to these forecasts, staff
implemented the following plan:
• Freeze the employee count and operating expenses
• Reduce the rate of increase of operating expenses to below 7 percent
• End the use of"one-time"revenues for operating expenses
• Implementation of new programs or services to be matched by reductions in
existing services
City Council Workshop Minutes
May 20,2003
Page 2
The following budget objectives were also developed:
• Comply with levy limits
• Minimize tax impacts
• Fund necessary services/staff
• Maintain a balanced budget model
• Provide funding for the Capital Improvement Program(CIP)
• Implement two-year budgeting cycle
Uram said these policies and objectives resulted in increasing fund balances.
2002 financial results were as follows:
• Revenue stabilization fund- $1,022,000
• Reserve for severance- $1,000,000
• Designated health care - $600,000
• Designated for working capital-$852,000
• Liquor operations retained earnings -$600,000
Uram said that although some of these reserves may appear high, it is important to
note that in 2005 the school district's lease payments on their portion of the City
Center will be considerably lower than today, and that C.H.Robinson's lease is
up in 2005. It is unclear whether or not they will choose to renew the lease. If
their space is vacated,the City will be responsible for covering significant
operating costs for the empty areas until a new tenant is found.
Uram said the 2002 general fund balance designated for working capital was $9.3
million,with$2.5 million in reserve for severance, and$600,000 designated for
healthcare. The revenue stabilization fund balance was $4.3 million, CIP was
$9.5 million, and liquor operations $2.5 million.
Uram said that although the legislature has not made final decisions, it appears the
City will be facing major legislative issues, including levy limits, debt limits, and
possible reverse referendum. The City expects to lose approximately$1 million
in state funding in the form of Local Government Aid and Market Value
Homestead Credit. Other revenues are expected to increase only minimally.
In addition, employee health insurance premiums are expected to rise by up to
25%. The City is also attempting to determine its financial liability in
remediating a contaminated fire training site it co-owns with several other western
suburban communities.
IV. OTHER TOPICS
Council Chamber
V. OPEN FORUM (Scheduled participants, 6:30-6:50 p.m.)
City Council Workshop Minutes
May 20,2003
Page 3
A. Jeff Strate—Hennepin Village
Jeff Strate addressed Council regarding concerns about the Liatris Lane easements
being considered as part of the Hennepin Village development. He said he is
concerned that damage can occur despite an easement. Strate said he has heard of
problem in other communities, such as Minnetonka Beach,with similar
easements. He said that uses can be challenged and changed later. Another
concern is that there is only one access point to the conservation area. Strate
asked Council to reconsider this portion of the Hennepin Village proposal and
keep Liatris Lane either public or tweak the agreement to make it stronger.
Councilmember Case said he is understands Strate's concerns but would need to
know what benefit there would be to keeping the road public. City Manager Neal
said that while there may be merit to Strate's concerns,the heart of the issue
appears to be the City's ability to maintain public access to the conservation area.
Neal said staff feels the City will be able to maintain access to the trailhead. Neal
also said staff is concerned about pulling out one small piece of a much larger
agreement that is the result of ongoing negotiations between staff and the
developer. Neal said that tonight was an important date for the Hennepin Village
item because Council is running out of time to make a decision on the agreement.
Councilmember Mosman asked if the discussion of Mr. Strate's concerns could
be finished during the Council Meeting since another speaker was scheduled for
Open Forum. Council agreed to continue the discussion during the regular
Council Meeting and Mr. Strate said he would be happy to stay for the meeting.
B. Loren &Norma Wuttke—Proposed Development
Norma and Loren Wuttke told Council their family has lived in Eden Prairie on
one of the most beautiful 51-acre parcels in the City for 20 years. They said they
are now ready to share this site with the community, and have solicited concept
plans for a"50+active adult community." They acknowledged that this parcel is
guided low density,but questioned whether or not this is the best use for it. They
said they received one concept plan with which they are very pleased. The
development would appeal to older active adults who want a natural setting and
security. They said they are looking forward to the assistance of City staff in
helping this proposal go forward. They said they would like to know if the
Council feels it can support this proposal. Some of the amenities included in the
development include preservation of 60 percent of the natural space, 24-7 on-site
management, a clubhouse, and underground parking to reduce the amount
impervious surface. Mayor Tyra-Lukens asked how many units are proposed
under this concept. They said there would be 11-15 units per acre, or a total of
613 units. Tyra-Lukens said that while the concept sounds interesting,the
Wuttke's would need to take the proposal through the normal process of staff
review and presentation to the Community Planning Board.
VI. OPEN PODIUM(Unscheduled participants, 6:50-7:00 p.m.)
VH. ADJOURNMENT