City Council - 05/19/2015 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, MAY 19, 2015 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
Council Members Case and Butcher Wickstrom were absent.
I. 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT/AUDIT
Doug Host and Chris Knopik, principals with CliftonLarsonAllen, presented the results of the
City's annual financial audit. This is the first year CliftonLarsonAllen conducted the City's
audit, and Host commended City staff for an outstanding job preparing for the audit and
assisting the audit team while they were on site.
Host said the City received an unmodified (clean) opinion for the 2014 financial statement.
There were no findings in the areas of material weaknesses and significant deficiencies, as
well as no findings in segregation of duties. There was one finding in the legal compliance
area, with one missing contract supplemental form.
Knopik reviewed the financial results. He noted that revenues and expenditures have
remained consistent over the years, and the general fund balance remains stable. General
fund revenues came in over budget by 5.4% and expenditures came in at 100.5% of budget.
Water operations revenue decreased from 2013 as a result of usage decreasing more than the
rate increase. Liquor sales decreased by 1.8%, which was smaller than the decreases many
other municipalities experienced. $1,000,000 was transferred from liquor operations to the
capital improvement fund.
Estimated market values are trending up, although they are still not as high as they were in
2009. Eden Prairie continues to have a lower tax rate than surrounding cities and the state.
Per capita revenues increased $64 from 2013, primarily due to intergovernmental revenues.
Per capita expenditures increased $11 from 2013, primarily due to increased public safety.
Eden Prairie continues to have a bond rating of Aaa. Only 15 other Minnesota cities have this
rating. The City again received the GFOA Certificate of Excellence in Financial Report,
which is has received every year since 1990.
City Council Workshop Minutes
May 19, 2015
Page 2
The following table summarizes the City's net position as of December 31, 2014 (in
thousands).
Govern mental Acti Butiiness-Type Total
2014 2D13 2014 2013 2014 2013
Revenues:
Program Revenuer,
Charges for Services $ 11,620 $ 12,263 $ 26,756 $ 29,829 38,376 $ 42,d92
Operating Grants and
Contributions 1,742 1,460 131 - 1,873 1,460
Capital Grants and
Contributions 20,504 2,9013 1,448 3,070 21,952 5,97a
General Revenues
Prop"Taxes 32,781 32,674 - - 32,781 32,674
Tax Increment 3,071 3,535 - - 3,d71 3,535
Grants and Contributions 484 862 - - 484 862
Investment hcorn a 210 138 47 16 257 154
Gain on sale of Capital Assets - - - - - -
Total Revenues 70,412 53,832 28,382 32,915 98,794 86,747
Expenses:
Administration 4,921 5,855 - - 4,921 5,855
CornmuniN Development 5,369 5,679 - - 5,369 5,679
Police 13,5m 12,846 - - 13,534 12,846
Fire 6,094 5,724 - - 6,d94 5,724
Put)ic Works 13,321 16,289 - - 13,321 16,289
Parks and Recreation 12,947 11,114 - - 12,947 11,114
Interest on Long Term debt 964 1,337 - - 984 1,337
W ater - - 9,856 9,565 9,856 9,565
Sewer - 6,403 6,561 6,403 6,561
Storm - 2,546 2,420 2,546 2,420
Liquor - - 11,015 11,174 11,015 11,174
Total Expenses 57,170 58,844 29,820 29,720 86,990 88,564
Changes in Net Position
Before Transfers 13,242 (5,012) (1,438) a,195 11,8D4 (1,817)
Internal Transfers 1,415 1,253 (1,415) (1,258) -
Change in Net Position 14,657 (3,754) (2,853) 1,937 11,804 (1,817)
Net Pcsi[ion,January 1 241,433 245,157 148,436 146,499 389,869 391,686
Net Position,December 31 $ 256,090 $241,433 $ 145,583 $148,436 $ 4d1,673 $ 389,869
IL SOUTHWEST TRANSIT
Len Simich, executive director of Southwest Transit, gave an update on the organization's
activities.
Simich said Southwest Transit general ridership was up 8%in 2014 over 2013. They
achieved 99% on-time performance as well as a customer satisfaction rating of 99%.
Southwest Transit also introduced several new services/routes in 2014, including expanded
reverse commute service and expanded special event service. A bike rental program aimed
at the"last mile" was launched, and wi-fi to all buses and stations was expanded. Five
expansion buses, including a double-decker bus, were added to the fleet.
City Council Workshop Minutes
May 19, 2015
Page 3
Simich said one notable accomplishment of 2014 was negotiation of a favorable development
agreement with the Met Council for joint use of SW Station for LRT.
Southwest Transit received the highest possible grade (unmodified opinion) for their 2014
audit. Energy savings initiatives are expected to result in $1.5 million in savings. Southwest
Transit sold the Chaska warehouse facility and the housing parcel adjacent to Southwest
Village in Chanhassen. Management contracts with the Plymouth and Carver resulted in
more than $150,000 in revenue.
Simich said Southwest Transit continues to experience a labor shortage, particularly for
drivers and mechanics. Southwest Transit also continues to monitor legislation that could
threaten the organization's autonomy and funding.
In 2015, Southwest Transit will update its strategic plan and explore system expansion
possibilities. They will be awarding new driver services contracts for the first time in 15
years.
Council Member Nelson said she has heard from some residents that Metro Mobility's hours
of operation are limited, and she asked if it would be possible to expand their hours. Simich
said funding and operations agreements would make it difficult to add hours.
III. OPEN PODIUM
IV. ADJOURNMENT