Archive | December, 2010

Thanks to all for a great year

For Brick City Blog, 2010 has been a very good year.  Page views nearly tripled and e-mail subscribers doubled in 2010 over where they were in 2009.

I want to thank everyone who has stopped by and let’s keep the conversation going about how to make Chaska an even better place to live, work, and play!

Two additional thoughts

Two other thoughts as we head into the holidays:

  • One more note on the idea of a pay freeze for city employees.  If retention of employees is a concern (and the Council is certainly correct to be concerned), then the time to take an action like a pay freeze is when everyone else is doing it.  By waiting now until 2012 (or beyond) to take any action, the City risks being something of an outlier compared to the private sector and other governmental bodies, who have been making these moves in 2009/2010/2011 and have already taken those savings.  Additionally, making such a move earlier allows you to get savings across the entire five-year planning period.
  • A good discussion has broken out at the Chaska Herald site regarding the Athletic Park proposals.  I think what proposals like this and the Downtown Master Plan point to is the need for Chaska to have a published Economic and/or Community Development Strategy.  Here’s a link to such a strategy for the city of Tracy, California.  This is the sort of document that the city needs to create and make available.  It clearly delineates a handful of key goals, one to three strategies for achieving those goals, specific actions the city will take, and how the city will measure progress.  Master Plans and Concept Plans get us part of the way, but what we really need are specific actions and measures to make clear exactly what the priorities are and to hold public officials (elected and city staff) accountable for making progress.

I hope everyone has a very Happy Holiday season!

A not-so-good prediction

From the September 2, 2009 Chaska Herald:

Podhradsky said that he foresaw the city’s tax rate remaining at a constant 22.2 percent for at least the next five years after the increase.

Two tax increases in two years, yet we’re still facing a deficit over the next five years.  Time to get real about the structural issues in the budget.

Kicking the can down the road

Last night, the City Council voted 5-0 to approve an increase in the property tax rate designed to keep the 2011 tax levy at the same level as 2010.  

Much of the Council’s discussion related to the issue of personnel costs, which have been budgeted to increase 1.5% in 2011.  Unfortunately, much of that discussion involved setting up strawmen (that critics were demanding drastic cuts in salary or personnel numbers) and knocking them down.

The city’s budget does nothing to address the long-term financial issues that this city faces.  Even with the tax increase, 2012 and the rest of the five-year planning period still projects to have serious deficits that are going to have to be addressed either by further tax increase and/or spending cuts.  Holding out hope that development is going to ride to the rescue in 2011 — which the Council seems to be counting on — is a pretty thin strand to grasp.  While we all hope that the economy is poised to truly turn around, the stark reality is that the last two economic recoveries have taken far longer than historical post-WWII trend to produce a return to “normal”.

The Council seemingly hasn’t learned from recent experience with the Street Reconstruction Program or Water Rates.  Kicking the can down the road doesn’t work.  With those programs, the Council waited and waited, then was forced to make dramatic changes (a tax increase for the former and a near-doubling of rates for the latter).   Thanks to the inaction of the Council to start addressing these structural issues with the 2011 budget, we’re potentially facing a much larger mess in 2012 and beyond.

When roughly 70% of the city general fund budget goes to personnel costs, you’re going to have to go there to get savings.  Everyone appreciates that Chaska has, by and large, excellent city staff who are smart, versatile, and dedicated.  But reality is reality.  You can’t just wave away (as Mayor Mark Windschitl did) the fact that private sector workers have seen dismal labor market conditions and homeowners are experiencing declining property values.  A one-year pay freeze for city employees would not be out of line given the current situation, and in fact, that would be far better than what many employees of other government agencies have been receiving.

It’s critical that Chaska’s financial house get put into order sooner rather than later.  In January, the city will unveil the results of the Downtown Master Plan.   First looks  for some of the ideas on critical downtown blocks were given to the Chaska Herald last week.  These ideas look promising, but they are not going to be free.  If revitalization of downtown is as important as everyone says it is, then money is going to have to be freed up for these efforts.  We’ve got to have the rest of the budget in line in order to be able to effectively address downtown (realizing that said funds will come from multiple sources).  Otherwise, all the hard work (and the $83,000 in consulting fees) will go up on the shelf, not to be used.

Making the same mistakes over and over again?

La Quebrada Restauranto Mexicano and Cantina is reported to have opened in the former Chestnuts/Mi Casa location downtown. 

I haven’t had a chance to check it out as of yet, but I was wondering what the menu looked like and what prices were, so I thought I would go out and check the website to see what they were offering.  It was then I discovered that the restaurant doesn’t have a website.

Say what you will about the downtown business environment and question if you will whether the city has done enough to make it better, but it’s not the city’s fault that downtown restaurants continue to make fundamental errors in how they run their businesses. 

If there’s one thing that a restaurant owner who operates in downtown Chaska should have learned by now, it’s that you’ve got to market your restaurant — people aren’t going to just find you.   Every failed restaurant in the downtown area recently — with the exception of Pauly’s — didn’t do nearly enough to get its message out.

Business briefs

Some notes from around town:

  • Quizno’s Subs has re-opened in its former location in Chaska Commons
  • La Quebrada Restoranto Mexicano and Cantina had its liquor license approved and will be opening soon in the former Chestnuts/River City Pub/Mi Casa location
  • A women’s clothing boutique will be opening in the former Dunn-Rite location in January

More radio silence

Tonight, the Chaska City Council, Chaska Planning Commission, Chaska Parks Commission and Chaska Heritage Preservation Committee will be having a joint meeting at the Chaska Community Center to discuss the initial findings from the Downtown Master Plan process.  (A public forum will take place in January, but tonight’s meeting is an open meeting under Minnesota statute.)

How was this communicated to residents?

Front page of the city website?  Nope.

A note in the City Council section of the website?  Nope.

The City Hall Bulletin?  Nope.  It lists that the normal meeting of the Planning Commission is canceled, but nothing about this meeting.

An announcement on its Facebook page?  Nope.

The only place this meeting is communicated is buried deep in the staff report and in the other business section of the minutes from the 12/6 City Council meeting.

When will City Hall begin to take seriously its responsibility to communicate with residents and make the people part of the process?

City Council approves more paid personal leave time for city employees

At Monday’s Chaska City Council meeting, the Council approved changes to the paid personal leave (PPL) policy for all city union and non-union employees.  The changes were approved on a 3-1 vote, with Councilor Gino Businaro voting no, and Mayor Mark Windschitl absent due to illness.

These changes provide employees with additional paid personal leave, designed (per City Administrator Matt Podhradsky) to bring Chaska in line with the average of a peer group of 30 cities.

The changes would give an employee an average of about three more days of paid personal leave per year over the first 20 years of employment.

Below is a table showing the breakdown of the new plan versus the current plan.  City employees are also expected (assuming the preliminary levy is approved at the December 20 City Council meeting) to get pay raises of 1.5% in 2011.

   Days of Paid Personal Leave
Years of Service Current Plan New Plan Difference
0 15 18 3
1 15 18 3
2 15 18 3
3 15 18 3
4 15 18 3
5 15 18 3
6 20 22 2
7 20 22 2
8 20 22 2
9 20 22 2
10 20 22 2
11 21 23 2
12 22 24 2
13 23 25 2
14 24 26 2
15 25 27 2
16 25 28 3
17 25 29 4
18 25 30 5
19 25 31 6
20 30 31 1
TOTAL 435 492 57

Truth in Taxation tonight

The Truth in Taxation meeting to discuss the city’s proposed increase in the property tax rate is tonight.  The General Fund presentation is online, while details for the other funds have not been posted.  A final vote on the city budget will be at the December 20 City Council meeting.

In September, the City Council approved a preliminary levy equal to that of last year, which effectively means that property taxes will be raised 6.7% to offset a similar decline in property valuations in 2011. 

Under the preliminary levy, the median homeowner in Chaska would see a decline in property taxes of $1 versus a decline of $30 if the tax rate were to stay the same.

Additionally, the plan called for the following cuts:

  • Do not hire a budget analyst and heavy equipment operator as originally planned
  • Delay purchases of a new siren for northern Chaska and additional snow removal equipment
  • Reduce the sealcoat and overlay portion of the street reconstruction programThe cuts and the tax hikes represent a combined $639,000, offsetting increases in personnel (1.5%) and operating expenses (2%).
  • Unfortunately, the City Council has not gone further and addressed additional expenses that should be looked at.  I would propose these additional measures, with the savings going to reduce the tax rate:

    • A one-year pay freeze for city employees.  This would be entirely appropriate, given the continued budget problems and the dismal conditions in the larger labor market — as most families have seen their wages frozen (or worse) in the current economy.  Many other cities have already taken this step.  Councilor Gino Businaro has been pushing for this, and we shall see if he votes against the budget again because it is not included.
    • Elimination of the downtown flower program and begin a transition away from city subsidies for “Concerts in the Park”, Taste of Chaska, and River City Days.  These are excellent opportunities for the Chaska business community to step up.  The goal should be for the city to eventually not have to subsidize these events at all, but the transition should happen over a three-year timeframe to allow organizations to fundraise to fill the void.
    • Voluntary pay cuts from the Mayor and Council:  Under Chaska statute, changes to the pay for the Mayor and Council wouldn’t take impact until 2013.  However, nothing prevents the Mayor and Council from voluntarily cutting their pay.  A 10% (or more) cut would be a sign of good faith, even if it wouldn’t have significant budget impact.

    Follow

    Get every new post delivered to your Inbox.

    Join 396 other followers

    %d bloggers like this: