Minnetonka Mayor: State of City 'Very Sound'

Minnetonka Mayor  focused on city finances and development Wednesday in his 2011 State of the City address.

“We do think the state we’re in is very sound,” Schneider said to an audience made up largely of local business owners, council members and city staff.

“We’re very blessed," he said. "Great natural resources, an engaged citizenry… and quality government.”

City Manager , the self-proclaimed master of ceremonies for the speech, joked to the hundred person crowd munching on mini-muffins and sipping coffee. 

“Sorry I’m not Billy Crystal,” he said before turning the microphone over to Schneider. The first remark the Minnetonka Mayor made in his 25-minute speech was to thank Gunyou for his fiscal leadership.

CITY FINANCES

“In 2008, he saw the economy kind of spiraling down,” Schneider said of Gunyou. “John recognized that what we had been doing in the past needed modified, that it probably wasn’t sustainable.”

Schneider referenced changes—hard changes, that the city has made to achieve a flat operating for two years running. To balance the 2010 budget, Minnetonka laid off seven employees from its workforce of over 200 people. Because 75 percent of the city’s general fund expenses are related to employee salaries, Schneider said this was the only responsible choice.

“It was not an easy time for staff," Schneider said. "But they understood what we were trying to do and were supportive.” 

Schneider also detailed innovative, money-saving partnerships with neighboring municipalities. He specifically pointed to a cooperative agreement between Minnetonka and St. Louis Park, in which the two cities share building inspectors.

“We’re being much more creative,” he said. “It keeps overall cost down … and provides a better quality service.”

The mayor expressed dissatisfaction with the trickle-down effect the state’s looming $6.2 billion budget deficit is having on local governments. Schneider pointed to the, which has cost the city about $500,000. In balancing its budget, the state didn't fully fund the program, which offers property tax breaks to some Minnetonka homeowners.

CITY DEVELOPMENT

In 2008 and 2009, in Minnetonka was at an all-time low, but Schneider sounded an enthusiastic note about city development in 2010 and beyond.

“We've had larger projects moving forward,” he said. “We see the activity level picking up and predict it will stay strong through 2011.”

Schneider referenced building projects like new , and stores in Minnetonka, as well as the renovations of the . He also gave the city a pat on the back for securing the $20 million it will cost to redo the Highway 169 and Bren Road interchange, slated to begin in April 2011.

Schneider admitted that Minnetonka’s home remodeling industry has suffered because of a involving two neighbors in Minnetonka. Last summer, the Minnesota Supreme Court ruled that for residents to get exceptions to the standard state zoning law, known as a zoning variance, they must prove their properties would be unusable without it. Schneider is looking to the State legislature, which is that would give cities more authority to apply the zoning laws as they see fit.

“Once that changes, we’ll have a whole new flood of remodeling activities,” he said.

SOUTHWEST LIGHT RAIL TRANSIT LINE (LRT)

Schneider said that although major strides were made on the Southwest LRT project in 2010, he predicted the project would face major challenges in the year to come. The Southwest LRT project is a proposed 15-mile light rail line that would serve Eden Prairie, Minnetonka, Hopkins, St. Louis Park, and Minneapolis. It would connect to the Hiawatha and Central Corridor LRT lines and is projected to cost about $1.2 billion.

“Funding is short,” he said.

Schneider also pointed to other roadblocks to this project: the shift in House and Senate leadership at both the state and federal level and the electoral loss of Rep. Jim Oberstar (D-MN) as chair of the House Transportation Committee.

“It will probably be delayed one to two years,” he said. “Hopefully there will be enough pressure to keep momentum going.”

The mayor capped off his 2011 State of the City speech with thanks to city employees, residents and business leaders.  

And in return, the audience enthusiastically applauded Schneider— a notably loud endorsement for the man who had started his speech warning, “I’m not a morning person.”