City Council - 07/17/2012 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY,JULY 17, 2012 CITY CENTER
5:00—6:25 PM, HERITAGE ROOMS
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, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah,
Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City
Attorney Ric Rosow, and Recorder Lorene McWaters
Workshop - Heritage Room H
I. 2013 BUDGET
City Manager Rick Getschow presented a PowerPoint on the proposed 2013 budget.
Getschow said operationally, staff is seeking to enhance service levels in the areas of
public safety and maintenance of infrastructure. All other services levels will be
maintained using the same resources. On an organization level, the goals are to sustain
current levels of employee morale and engagement, and to inspire creativity, innovation
and strategic thinking. The overall goal is to continue to improve Eden Prairie's fiscal
position relative to comparable cities and to preserve Eden Prairie's exceptional image
internally and externally. The budget includes an additional police officer(2012) and
implementation of the fire duty crew (2012-2013). The budget also includes a 2 percent
salary adjustment for employees, which is consistent with public and private sector
trends. In addition to another police officer and implementation of the fire duty crew, the
proposed budget includes funding for a Community Development tech position to replace
the former Administrative Assistant position.
Proposed initiatives for 2013 include implementation of Phase 4 of the 20-40-15
program, expansion of the 4th of July event, the addition of life guards at Round Lake,
development of a master bike and pedestrian plan, public art and city beautification
initiatives, entrance monuments, creation of a point of sale inspection program and
community outreach initiatives.
Getschow said the original 2013 budget called for a 2.7% increase. After refinement,
staff is proposing a 2.5% increase. This translates into a .9 to 1.3% levy increase.
Getschow noted that the City realized positive operating results for 2012. Staff
recommends that money be used for one time expenditures, including reduction in the
debt levy and purchase of equipment for the Community Center.
At the close of 2011, staff proposed a general fund budget that included a deficit of
$683,500;however, the City has achieved about$100,000 in savings since 2012 through
City Council Workshop Minutes
July 17, 2012
Page 2
wage and health and dental insurance changes which can be used to close that gap. Staff
is also recommending a budgeted increase to development revenue to reduce the deficit.
The updated tax levy proposal includes a$29,428,326 general fund budget with a total
levy of$30,977,028. This would result in a 1.3% increase in the levy. The tax impact on
the median value home is estimated to be from a $5 decrease to a $10 increase, or a .5%
decrease to a 1% increase. Staff will have more precise numbers for fiscal disparities
contributions, etc., before the City Council approves the preliminary levy on September
4. Expenditures were originally budgeted to increase 2.7% in 2013,but the revised
estimate is 2.5%.
Getschow noted that the League of Minnesota cities recently completed a study of the
fiscal disparities program. Eden Prairie is the second highest contributor to fiscal
disparities. Getschow and Mayor Tyra-Lukens have been asked to serve on a task force
that will further study the program.
Council Member Aho said he thinks the budget direction is good so far. He said there
has not been pronounced economic improvement yet, so property taxes need to be kept
level. Council Member Case said it is important to keep the levy under 1%. He asked if
it would be possible to do that by reducing the discrepancy in forecasting development
revenue.
Economic Development Manager David Lindahl provided an update on Eden Prairie's
invitation to join Greater MSP. Based on a banded approach, using population as a
determining factor, Eden Prairie would pay $25,000 per year. Lindahl prepared a brief
summary of advantages and disadvantages to membership. Advantages include the
opportunity to participate on a 50+ member advisory council. Lindahl said Eden Prairie
may also be considered more of a team player if it supports the organization financially.
There is some question about the fairness of using the banded approach to determine
membership costs. For example, at$25,000 per year Eden Prairie's per capita cost would
be $.41. Edina pays $10,000 per year, or$.21 per capita. In addition, Scott County is
paying $25,000 per year on behalf of all cities within the county regardless of size.
Lindahl has spoken to representatives of Greater MSP about whether or not they are open
to a counteroffer on the cost,but they are not willing to depart from the banded approach
at this time. Council Member Nelson said she would be willing to pay the same per
capita as Edina. Case asked whether or not it would make sense to join at$25,000 and
work with the group to make the dues more equitable. Butcher said she sees value in
membership in this type of organization. Getschow said it would be helpful to have more
information on whether or not the organization's membership is shifting toward private
sector membership taking on a greater share of the financial burden.
Open Podium - Council Chamber
II. OPEN PODIUM
A. ABDIMALIK MOHAMED
City Council Workshop Minutes
July 17, 2012
Page 3
Mohamed said he is an Eden Prairie resident and works with Ka Joog, a Somali
organization that focuses on youth programming. Ka Joog is launching a
mentoring and employment program for Somali youth in Eden Prairie.
Mohamed provided handouts that outline the goals of the program and its budget,
which is $1.5 million. Mohamed said he feels Eden Prairie has not done enough
for Somalis over the past 15 years, and this program is needed to help Somali
youth. Mayor Tyra-Lukens asked if Mohamed had worked with staff in Housing
and Community Services to identify possible grants for the program. Mohamed
said he has not done that, and asked if he would be given the same advice if he
were not an immigrant. Mayor Tyra-Lukens said all groups seeking funding work
through the processes set up by the Housing and Community Services division.
Council Member Butcher also encouraged Mohamed to work with Molly
Koivumaki and her staff.
III. ADJOURNMENT