City Council - 12/07/2010 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, DECEMBER 7, 2010 CITY CENTER
5:00—6:25 PM, HERITAGE ROOM II
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Phil Young, Council Members Brad Aho, Ron Case, Jon Duckstad, and
Kathy Nelson
CITY STAFF: Interim City Manager Jay Lotthammer, Police Chief Rob Reynolds, Fire Chief George
Esbensen, Public Works Director Eugene Dietz, Community Development Director Janet Jeremiah,
Communications Manager Joyce Lorenz, City Attorney Ric Rosow, and Recorder Lorene McWaters
Heritage Room H
I. 2011 BUDGET
Staff Presentation
Interim City Manager Jay Lotthammer presented a PowerPoint in preparation for the City
Council's discussion of the 2011 budget. Lotthammer reviewed financial results for 2009
and expected financial results for 2010. Lotthammer reviewed the proposed budget staff
presented to the City Council on September 7, 2010. That proposal called for a 2.6%
increase in the levy, and would result in a deficit of$1,642,688. That proposal included a
2.8% increase in the budget, and included a 2% wage increase, addition of two police
officers, and implementation of the fire duty crew. This fall, the City Council requested that
staff prepare several different scenarios involving various increases in the levy and budget.
Lotthammer provided details of several of those scenarios.
The Aho/Duckstad scenario calls for a zero increase in the levy and zero spending increase.
That scenario would result in a MSFRT tax impact of$19.00 or 1.81%. The budget deficit
would be $1,343,518.
The Nelson scenario calls for a 2% increase in the levy, and would include the fire duty
crew. The budget deficit under this scenario would be $1,007,939 and would have a
MSFRT tax impact of$40 or 3.7%.
The Case scenario calls for a 2.6% levy increase and a zero spending increase. This would
result in a budget deficit of$591,586. The MSFRT tax impact would be $47.
For each of these scenarios, staff has identified $679,000 in wide-ranging budget reductions
that would offset the 2% wage increase,health premium increase, and the City's required
PERA contribution. Lotthammer presented wage data that shows that Eden Prairie
2009/2010 salary increases were below the average of comparable cities.
City Council Workshop Minutes
December 7, 2010
Page 2
Lotthammer presented an updated staff proposal for the 2011 budget. This proposal calls for
a 1.74% increase in the levy and a zero spending increase. The proposal includes staff-
recommended budget reductions as well as a 2% wage increase. The budget deficit would
be $843,518. The MSFRT tax impact would be $38 or 3.5%.
Council Discussion
Mayor Young asked whether or not staff has collected data on overall market comparison of
Eden Prairie salaries to salaries of peer cities,rather than just data on raises. HR Manager
Karen Kurt said in the past Eden Prairie salaries have trended a bit higher than comparable
cities,but are now trending toward the average. Aho asked when health care costs were last
looked at. Lotthammer said the City is coming to the end of a three year contract, and will
go out to bid this spring.
Council Member Nelson asked what it will mean for$70,000 to be cut from pavement
management. Public Works director said the real problem is finding a permanent funding
source for capital improvement projects. He said staff is hoping to have an in-depth
discussion about that with the City Council in 2011. Nelson asked for more detail about the
proposed spending reduction for streetlights. Dietz said the service level would remain the
same,but requests for new streetlights would be deferred. Nelson asked if the open skate
reduction would eliminate open skating altogether. Lotthammer said there would be fewer
hours. Nelson asked for more information on the proposal to scale back the 4th of July
event. Lotthammer said instead of all day event, it would be an evening-only event. Nelson
said she is not happy with that suggestion.
Council Member Aho asked if staff has ever looked at offering limited bow hunting as a
means of reducing the deer population. People would have to purchase a license to
participate. Lotthammer said that staff explored that possibility before he joined the City,
but there were concerns about safety and humaneness. Public Works Director Gene Dietz
said the current program is the result of a compromise reached by the Parks, Recreation &
Natural Resources Commission, the City Council, and outside organizations such as PETA.
Nelson asked why only the Fire Department is proposing a reduction in conference
expenses. Lotthammer said Parks and Recreation has reduced conference expenses over the
past couple of years. Police Chief Reynolds and Community Development Director Janet
Jeremiah also indicated that their departments have reduced out-of-state conference
attendance.
Council Chamber
II. OPEN PODIUM
III. ADJOURNMENT