HomeMy WebLinkAbout2008-08-26 Council Special Meeting MINUTES
OF THE STUDY SESSION OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
AUGUST 26, 2008
11:30 A.M.
Mayor Hovland called the meeting to order at 11:40 A.M. in the Community Room of Edina City
Hall. Answering rollcall were: Members Bennett, Housh, Masica, Swenson and Mayor Hovland.
Staff present included: Gordon Hughes, City Manager; Heather Worthington, Assistant City
Manager, Wayne Houle, City Engineer, Mike Siitari, Police Chief; Marty Scheerer, Fire Chief;
John Keprios, Park Director; John Wallin, Finance Director, Eric Roggeman, Assistant Finance
Director; and Debra Mangen, City Clerk.
Mayor Hovland said the purpose of the study session was to review the 2009 Operating Budget.
Manager Hughes presented an overview of the previous budget work session. He outlined the
challenges facing the City for the coming year. Mr. Hughes explained that upon further
communication from the State, the City of Edina's levy limit was effectively 4.4% which was the
limit imposed by the legislature adjusted for the growth in commercial/residential property value.
He explained that after review it was apparent that issuing a separate levy for the public safety
was not helpful since it would increase the levy limit to approximately 4.5% and would lock the
City into keeping the public safety levy separate for three years.
Mr. Hughes explained that if the Council authorized the sale of the bonds to finance the
relocation of public works facility they could begin the debt levy with a partial payment in 2009,
but this debt payment would need to be included in the September 2nd maximum levy. He
noted it could be lowered or removed at a later date. It was pointed out that if payments on the
bonds were to begin in 2009, there would be a savings over the life of the bonds of
approximately $600,000.
Council asked how the decertification of the TIF districts would affect the tax levy. Mr. Hughes
noted that the main effect would be the tax increments would flow into the City overall tax
capacity.
Mr. Hughes reviewed the 2009 Budget which would include the following proposed expenditure
increases:
• Salaries/Benefits & Steps 4.0%
• Contractual Services 2.5%
• Commodities 3.0%
• Central Services 3.0%
• Equipment 0.0%
• Other Exp. & Transfer 0.0%
• Overall Expenditure Increase 3.5%
In addition, the following adjustments would be necessary to the revenue portion of the budget:
• Abatements & Penalties, property taxes (net) ($150,000)
• Licenses & Permits, increase 3.0%
• Intergovernmental Revenue, increase 3.0%
• Fees and Charges, increase 3.0%
• Fines & Forfeitures, increase 0.0%
• Other Revenue & Transfers 2.0%
• Overall Revenue Increase 3.5%
Minutes/Edina City Council/Study Session August 26 2008
The Council discussed staff's recommendation that it establish a street light utility. It was
decided that more information was needed before making a decision.
Various measures were noted and discussed relative to revenue sources and service
efficiencies. These included: potentially establishing a street light utility (hold for more
information before making a decision), excessive consumption fees for frequent, repeat police
calls, ability to locally write tickets (may not be available to statutory cities), issuance of
equipment certificates to fund the equipment replacement fund. Consensus was to utilize the
equipment certificates for 2009 and continue gathering information about a street light utility for
further consideration
Mayor Hovland declared the meeting adjourned at 1:20 p.m.
Respectfully submitted,
Debra Ma en, City Clerk