City Council - 06/14/2011 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY,JUNE 14, 2011 CITY CENTER
5:00—6:25 PM, HERITAGE ROOM II
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, Interim Public Works Director Rod Rue, Community Development Director Janet
Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz,
City Attorney Siira Gunderson, and Recorder Lorene McWaters
Heritage Room H
I. 2012-2013 BUDGET DISCUSSION
City Manager Rick Getschow reviewed the City's recent budget history, which included
a $1,000,000 shortfall in 2009, employee wage freeze in 2010 and $679,682 in service
reductions in 2011. Getschow also reviewed efficiencies and cost savings staff has
implemented.
Getschow said staff has accelerated the budget timeline this year to provide the City
Council with ample time for analysis and discussion. Staff will be scheduling individual
briefings with Council Members to answer questions and provide more detailed
information. The preliminary levy will be set by the City Council at their September 6
meeting and the final budget will be adopted on December 20.
Getschow identified a number of goals that staff used in developing the preliminary
budget proposal. They include:
• Enhancing service levels in public safety and the maintenance of infrastructure
• Preserving all other services at current levels
• Sustaining employee morale and engagement
• Inspiring creativity, innovation and strategic thinking
• Preserving Eden Prairie's exceptional image, internally and externally
Getschow said that with even with no increases in compensation or programs, the 2012
budget would increase by 1.4 percent due to inflation,higher fuel prices, and other costs
outside the control of the City. A two percent wage increase would result in a 3.1 percent
budget increase. The addition of a fire duty crew and two police officers would result in
a 4.4 percent increase. A 4.4 percent budget increase would translate into a 1.7 to 2.2
percent levy increase. Getschow said these figures assume a$1.3 million deficit for each
of the next three years, which would potentially be covered by the budget stabilization
fund. Getschow said he would like to see the City's budget strategy more closely align
revenue projections with actual expenditures, with the budget stabilization fund being
used only if necessary. Getschow said the Budget Advisory Commission is studying
City Council Workshop Minutes
June 14, 2011
Page 2
capital funding strategies and is expected to report back to the City Council later this
year.
There was general consensus among the Council Members that the projected depletion of
the budget stabilization fund needs to be addressed. Council Member Aho said the City
needs to reverse the trend of balancing the budget by using the budget stabilization fund;
however, he noted that the public has little appetite for tax increases. Council Member
Nelson said it will take a number of years to address the shortfall.
Mayor Tyra-Lukens asked for background on salary increases in recent years. Finance
Manager Sue Kotchevar said City salaries were frozen in 2010. The two percent increase
in 2011 was comparable to that of similar cities. Nelson said she wants to make sure staff
continues to strive for innovation and continues to watch spending closely,but she sees
the need to increase revenue a bit. Aho said the City Council still needs to have a
discussion about service levels. Case said it looks like the levy may need to be increased
in order to keep things at the same level of quality. Tyra-Lukens noted that every
candidate in the 2010 Council election said they were in favor of the proposed fire duty
crew. She said she feels there needs to be a community dialog on levels of service. Case
said the question the City Council must answer is whether they want to balance the
budget by lowering service levels or by increasing revenues. Council Member Butcher
said it will be important to remember that incrementalism is one of the City's values.
Case said he would like staff to continue to look at where efficiencies can be
implemented.
Council Chamber
II. OPEN PODIUM
III. ADJOURNMENT