City Council - 05/03/2016 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, MAY 3, 2016 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 Recorders Lorene McWaters and Jan Curielli
Workshop - Heritage Room H
Mayor Tyra-Lukens and Council Member Nelson were absent. Council Member Butcher
Wickstrom joined the meeting at 5:45 p.m.
I. 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT/AUDIT
Chris Knopik, principal with CliftonLarsonAllen, presented the results of the City's annual
audit. Knopik said the City received an unmodified (clean) opinion for the 2015 financial
statement audit. There were no findings in the area of internal control items. The auditors
conducted applicable testing and completed a 25-page checklist to verify that the City
complied with applicable Minnesota State Statutes. There was one minor finding in the area of
contract compliance, which Knopik said can easily be corrected.
Knopik said general fund revenues and expenditures have remained consistent over the years,
and the general fund balance has remained stable year after year. He said there was a$551,000
change in the fund balance for 2015. He said the City is also meeting all policy thresholds.
Revenues came in over budget by 3.6 percent. Property taxes accounted for 72 percent of
revenues, charges for services approximately 11 percent, and licenses and permits
approximately 11 percent. Total expenditures came in at 99.8 percent of budgeted
expenditures.
Knopik said water operations revenues decreased from the prior year as a result of usage
decreasing more than the rate increase. Sewer operations saw a slight increase in revenues due
to the rate increase offsetting the decrease in usage for 2015. Storm drainage operations
covered 80 percent of depreciation in the current year and 35 percent in the previous year.
Operations provided $984,000. The fund received an advance of$1.4 million to cover
operations and projects.
Although liquor operations saw a sales decrease of 7.6 percent, the City was able to transfer
$800,000 to the Capital Improvement/Maintenance Fund. Knopik noted that many
municipalities experienced sales decreases in 2015, and Eden Prairie was bucking the trend
because our gross profit percentage was up slightly over the previous year.
City Council Workshop Minutes
May 3, 2016
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Estimated market values increased $451 million from 2014 to $9.1 billion. 2016 continues to
show improvements to $9.6 billion.
Knopik noted that there is an inverse relationship between tax capacity and tax capacity rate.
The net levy includes general fund levy and debt service levy. The 2016 tax rate is 32.14
percent. The City continues to have a lower tax range than surrounding cities and the state. Per
capita revenues increased $160 from 2014, primarily due to special assessments and "other"
revenues (Hennepin County Shady Oak Road South). Compared to other cities of similar size,
the largest difference is between intergovernmental and property taxes.
Per capital expenditures increased $22 from 2014, primarily due to increased community
development(Shady Oak Road and the Community Center Aquatics Expansion).
II. POLICE DEPARTMENT UPDATE
Detective Carter Staaf gave a presentation on sex trafficking and abatement. Staaf said the
time-tested formula for recruiting victims involves fraud, coercion and force. He said
prostitution is a sex act for commerce. Sex trafficking introduces a third party into the
transaction.
Staaf said sex trafficking occurs in both private and public places. He noted that many people
are surprised to learn that sex for commerce is not illegal when conducted on private property.
He said when the Police Department is made aware prostitution taking place on private
property, they attempt to intercept buyers as they leave the premises to discuss what is taking
place.
Staaf said sex trafficking is about money and control. A woman who is being trafficked
typically performs an average of five sex acts a day, seven days a week, at an average of$100
per transaction. This translates into about$15,000 a month, almost none of which the sex
worker sees. He said it is surprisingly inexpensive to put a woman to work as a prostitute as it
requires only a pre-paid phone, a$4 online ad and minimal clothing, food and shelter. He said
sex trafficking is less expensive than selling drugs and carries less risk.
Staaf said traffickers obtain victims by targeting, tricking, turning and traumatizing them.
Typical victims of traffickers include:
• Youth
• Homeless
• Women who are pregnant or who have young children
• Youth in the foster care system
• Past or current victims of molestation or other sexual abuse
• Young people of color
• Native youth
• LGBT
• Usually girls,but also boys and transgender youth
• Individuals lacking relationships, support and engagement in school or work
Targeting of vulnerable individuals occurs in public places such as schools, parks, libraries
and shopping malls. The Internet— social media and relationship/chat websites —is also used
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May 3, 2016
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to target victims. Once a victim is being trafficked, they are forced to fulfill quotas and are
isolated from family and friends.
Staaf said people are surprised to learn that trafficking occurs in affluent communities like
Eden Prairie. Staaf provided examples of women who have been brought into the community
to work or who have been recruited to work in other cities and states.
Staaf said the Eden Prairie police department is aggressively fighting sex trafficking in the
community and throughout the metro area. In 2015, the department conducted two "john
stings," and has carried out another one already in 2016. These operations resulted in 17
arrests. More than 300 different phone numbers called the decoy advertisements, and decoy
officers had more than 1,800 communications to their phones during just three details.
Staaf said the Eden Prairie Police Department has created a street crimes unit. It provides
outreach, enforcement and training to reduce trafficking. He said community members can
help by contributing to the Crime Prevention Fund and participating in the annual Stop the
Trafficking 5K Walk/Run for Justice on June 11.
Open Podium - Council Chamber
III. OPEN PODIUM
A. TOM MADDEN— TOBACCO SAMPLING ORDINANCE
Tom Madden, 19260 Lake Avenue in Deephaven, said he would like the Council
to amend the ordinance regarding e cigarettes. He has a retail establishment in the
Eden Prairie/Minnetonka area and would like to be able to offer sampling of e
cigarettes at his business. He reviewed research on the safety of e cigarettes and
the benefits of using that product to lifetime smokers.
Case asked if his interest is from a business perspective. Mr. Madden replied he
would like to offer the service in the community.
Aho asked if Mr. Madden was asking the Council to change the ordinance to
allow sampling of e cigarettes within a retail environment. Mr. Madden said he
would like the ordinance to be amended to be similar to the ordinance in
Minneapolis.
Case noted he remains adamant against the use of e cigarettes,but he appreciated
that Mr. Madden shared his concerns with the Council.
IV. ADJOURNMENT