HomeMy WebLinkAbout2004-07-06 Council Special Work Session MINUTES OF THE SPECIAL WORK SESSION
OF THE EDINA CITY COUNCIL
HELD AT CITY HALL
JULY 6, 2004
5:30 P.M.
ROLLCALL Answering rollcall were Members Housh, Hovland, Masica and Mayor
Maetzold. Member Kelly entered the meeting at 5:45 p.m.
Mayor Maetzold said the purpose of the special work session was to review issues that will
affect the preparation of the City's 2005 Operating Budget.
Manager Hughes stated the State of Minnesota appeared to be still in a state of transition
regarding the relationship between the State and local units of government. He noted that
for the first time in many years the legislature did not impose levy limits and also reinstated
the Market Value Homestead Credit (MVHC). However, Mr. Hughes cautioned reliance
upon actually receiving the MVHC because its will not be funded until the legislature
establishes its next biennial budget in 2005. Mr. Hughes pointed out that 2005 would be an
opportunity for Edina to end its reliance on aids/credits from the State and urged the
Council to make that a budget priority.
Mr. Hughes reviewed forecasts used in developing the 2005 scenarios, which included:
Expenditures:
• Wage and Employee Benefits - 2005 will be the second year of two year contracts that
had been negotiated at three percent
• Insurance Increases - Liability and casualty insurance have increased significantly and
employee health insurance has an expected increase of nine percent
• Contractual Services, Commodities - Projected increases of three percent across the
board for 2005 following holding these costs flat for 2004
• Budget Adjustments - Department Heads' proposed new programs/expenditures for
2005
Revenues:
• Equipment Certificates - Used in 2003 to finance purchasing larger pieces of
equipment scheduled for 2003 and 2004 replacement. It was recommended these
short-term obligations be used for financing 2005 and 2006 equipment replacement
• Non-Tax Revenue - A very conservative approach in forecasting license, permits, and
fees and charges was recommended
• Financial Crimes Task Force funding assumed to end June 30, 2005
• False Alarm Fees - More stringent ordinance had desired effect of reducing number of
false alarm responses with a corresponding reduction in false alarm revenue
• 50th and France Assessments - Based upon direction of Council, greater portion of
costs associated with the 50th and France parking ramps activities shall be assessed
against the commercial area
Mr. Hughes reviewed possible budget scenarios. The first one included all the requested
2005 new programs/expenditures and would result in an approximate 6.4 percent increase in
Minutes Special Meetin&Edina City CoundWf my 6,2004
expenditures and corresponding 8.48 percent increase in taxes. The second scenario included
Mr. Hughes recommendations for new programs/expenditures would result in a 5.21
percent increase in expenditures and a corresponding 6.86 percent increase in taxes.
The Council briefly discussed the pros and cons of levying in 2005 for the Market Value
Homestead Credit; gave direction about the percentage increases they would feel reasonable;
and reviewed the proposed schedule for 2005 Budget preparation and adoption. Consensus
was that additional scenarios were needed limiting increases to the neighborhood of five
percent.
A hearing was scheduled for 5:00 p.m. on August 17, 2004, before the regular Council
meeting
There being no further business, Mayor Maetzold declared the meeting adjourned at 6:45
p.m. f
Z
Debra A. Man , City Clerk
Page 2