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HomeMy WebLinkAbout2017-03-07 Ciity Council Work Session PacketAgenda City Council Work Se ssion City of Edina, Minnesota Edina City Hall Community R oom Tuesday, March 7, 2017 5:30 PM I.Call To Order II.Roll Call III.Greater Southdale Area Work Group Update IV.2018-2019 Budget Process & Vision Edina Work Plan V.Adjournment The City of Edina wants all res idents to be c om fortabl e bei ng part of the publi c proc ess . If you need as s is tanc e i n the way of heari ng am pli .c ation, an interpreter, large-print doc um ents or s om ethi ng els e, pleas e c al l 952-927-8861 72 ho urs in advance of the m eeting. Date: Marc h 7, 2017 Agenda Item #: III. To:Mayo r and City Co uncil Item Type: Reports / Recommend atio n From:Cary Teague, Co mmunity Develo p ment Directo r Item Activity: Subject:Greater S o uthdale Area Work Gro up Update Disc ussio n CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action requested. INTRODUCTION: T he City's Greater Southdale Area P lanning Consultant, Mic Johnson, Architecture Field Office will present a 3D model of the Greater Southdale Area. T he model represents the work of the Southdale Area Work group and demonstrates how the area could develop gradually over time. Staff and the Work Group are in the process of putting together a scope of work and contract with Architecture Field Office for completing the Southdale Area "small area plan" as part of the 2018 Comprehensive P lan Update. T he scope and contract will be presented to the City Council at a regular City Council meeting in the near future. Date: Marc h 7, 2017 Agenda Item #: IV. To:Mayo r and City Co uncil Item Type: From:Sc ott H. Neal, City Manager Item Activity: Subject:2018-2019 Budget Proc es s & Vis io n Edina Work Plan Information CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: Discuss process and timeline for developing the 2018-2019 Operating Budget and Vision Edina Work T hemes/P lan. ATTACHMENTS: Description March 7, 2017 Staff Pres entation The CITY of EDINA 2018-2019 Budget Process March 7, 2017 City Council Work Session The CITY of EDINA Agenda •Definitions •2018-2019 Budget Process and Timeline •Tax Facts www.EdinaMN.gov 2 The CITY of EDINA Definitions •General Fund: The main operating fund of the City’s government functions. Includes about $38M of revenues and expenditures. •Governmental Funds: In addition to the general fund, the City has a debt service fund, construction fund, HRA fund, and several special revenue funds. Annual expenditures are about $70M. •Enterprise Funds: Used to account for “business -type” activities. Total annual expenses equal about $40M •Consolidated Budget: About $110M in total revenues and expenditures/expenses and includes all City and HRA funds, governmental and enterprise. www.EdinaMN.gov 3 The CITY of EDINA Edina’s Budget www.EdinaMN.gov 4 Edina Consolidated Budget $110M Governmental Funds $70M General Fund $39M Debt Service Fund $8M Construction Fund $11M Special Revenue Funds, including HRA Enterprise Funds $40M Utility Fund $17M Liquor Fund $13M Park Enterprises $10M The CITY of EDINA Governmental Funds General Fund Property taxes Licenses & permits Grants User charges Cable franchise HRA Funds HRA Levy PACS & CAS Funds Utility Franchise Other Special Revenue Funds E911 Forfeiture Grants and donations Debt Service Property taxes Construction Fund User charges Grants & Donations Edina’s Budget www.EdinaMN.gov 5 The CITY of EDINA Enterprise Funds Utility Fund Water Sewer Storm Liquor Fund Sales Park Enterprise Funds User charges Liquor transfers Risk Management Fund Internal charges Edina’s Budget www.EdinaMN.gov 6 The CITY of EDINA Definitions •Estimated Market Value: One way to measure “tax base”. The City Assessor estimates values for each property in Edina. The total EMV of all properties in Edina is almost $11B. •Tax Capacity: A second way to measure “tax base”. Tax capacity is a uniquely Minnesotan way of calculating property taxes. Tax capacity uses EMV and property classifications so that different types of property are taxed differently. www.EdinaMN.gov 7 The CITY of EDINA Definitions •Total City Property Tax Levy or Levies: Often described as one, but the City actually has several different levies organized by purpose. •General Fund Property Tax Levy: The dollar amount that the City needs from property taxes to pay for General Fund expenditures. About $27M of the $38M General Fund budget (69%). •Debt Levies: Edina has several debt levies that go towards principal and interest payments on some of the City’s debt. The City also has debt that is paid by revenue other than property taxes, like our utility fund debt and special assessment debt. •Other Levies: Arts & culture, equipment, and HRA are examples. www.EdinaMN.gov 8 The CITY of EDINA Agenda •Definitions •2018-2019 Budget Process and Timeline •Tax Facts www.EdinaMN.gov 9 The CITY of EDINA Biennial Budget Process www.EdinaMN.gov 10 Even Year: CIP Focus First year of biennial budget Update operating budget for odd year Review CIP in detail Odd Year: Operating Budget Focus Second year of biennial budget Plan for next biennial budget The CITY of EDINA Work Plan Drives Budget www.EdinaMN.gov 11 Work Plan Themes •Council Work Plan Goals •Staff Budget •Staff VISION EDINA Work Plan (2016-2017)* Length: 2 Years – coincides with budget Responsibility: City Manager Approval: City Council Updates: Submitted by ELT to City Council at Quarterly Business Meetings Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Department Work Plans (2017) Length: 1 Year Responsibility: Department Director Approval: City Manager Updates: Submitted by Director to CM/ACM at least quarterly. Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Board & Commission Work Plans (2017) Length: 1 Year Responsibility: Board or Commission (with Staff Liaison support) Approval: City Council Updates: Submitted by B&C annually to City Council (through Staff Liaison) Goal 1 Goal 2 Goal 3 Goal 4 Individual Goals (2017) Length: 1 Year Responsibility: Employee Approved by: Supervisor Updates: Ongoing & in annual Performance Review City of Edina Work Plans Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 *Vision Edina Work Plan has previously been referred to City-wide Work Plan or City Council Work Plan. The CITY of EDINA 2014-2015 1.Infrastructure 2.Commercial & Mixed Use Development 3.Workforce 4.Community Vision 5.Communication & Engagement 6.Aviation Noise 2016-2017 1.Focused Redevelopment 2.Future Planning 3.Intergovernmental Relations 4.Transportation & Infrastructure 5.Enterprise Stability Council Work Plan Themes The CITY of EDINA Strategic Focus Areas 1.Residential Development Mix 2.Transportation Options 3.Commercial Development Mix 4.Live and Work 5.Educational Focus 6.Population Mix 7.Environmental Stewardship 8.Regional Leadership Future Community Features •Inclusive & Connected •Built-to-Scale Development •Sustainable Environment •A Community of Learning •Future Oriented Vision Edina www.EdinaMN.gov 14 The CITY of EDINA Budget Timeline Date Event Action March 7 Work Session Council kickoff for 2018-2019 budget TBD Council Retreat Council develops 2018-2019 Work Plan Themes April 5 ELT Staff Meeting Staff budget kickoff TBD ELT Retreat Develop goals for 2018-2019 Work Plan Themes Mar-June Staff work Finance & HR develop payroll estimates June 1 Staff deadline Department budgets due to Finance June 6 Work Session NRC presents QLS results to Council August 2 Work Session City Manager presents 2018-2019 proposed budget September Council Meeting Council adopts preliminary City levy December Council Meeting Public hearing & adopt final budget www.EdinaMN.gov 15 The CITY of EDINA •Comprehensive Plan •Race & Equity Task Force/Working Groups •Southdale Regional Library Redevelopment Initiative •44th and France Small Area Plan •Braemar Park Master Plan •Fred Richards Park Master Plan •Boards & Commissions 2017 Engagement Processes 16 The CITY of EDINA Agenda •Definitions •2018-2019 Budget Process and Timeline •Tax Facts www.EdinaMN.gov 17 The CITY of EDINA Tax Capacity is Increasing www.EdinaMN.gov 18 - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tax Capacity Used for Local Rate The CITY of EDINA Annual Property Taxes Median value homestead property in Edina School District www.EdinaMN.gov 19 Source: Hennepin County website and City Assessor’s Office 11/14/2016 Hennepin County 32% City of Edina 21% Edina School District 39% Watershed, Metro Districts, & Other 8% The CITY of EDINA Annual Property Taxes www.EdinaMN.gov 20 Sources: LMC Property Tax Calculator 11/10/16, Bureau of Labor Statistics 11/10/16 & City Assessor's Office 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total City (2003 dollars)$860 $816 $828 $820 $839 $821 $868 $865 $851 $866 $872 $887 $930 $971 Total tax (2003 dollars)$3,926 $3,747 $3,748 $3,766 $3,940 $3,891 $4,052 $4,173 $4,135 $4,330 $4,310 $4,362 $4,542 $4,814 Median Value $304,10 $315,30 $355,90 $385,10 $433,30 $444,80 $439,00 $432,70 $411,50 $403,10 $396,30 $399,70 $438,80 $457,30 $860 $971 $3,926 $4,814 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 "Median" Edina Home Property Tax History Adjusted for CPI (2003 dollars) The CITY of EDINA Property Tax Revenue Per Capita www.EdinaMN.gov 21 1 (1)Plymouth 413.22$ 2 (2)Maple Grove 501.44$ 3 (4)Richfield 516.30$ 4 (5)Eden Prairie 531.81$ 5 (3)St. Louis Park 550.08$ 6 (7)Bloomington 576.26$ 7 (6)Edina 581.79$ 8 (8)Hopkins 582.00$ 9 (9)Minnetonka 632.63$ 10 (10)Minneapolis 732.46$ 11 (11)Golden Valley 1,014.09$ Source: MN State Auditor website 3/2/17 PY ranking on this list shown in parenthesis. The tax per capita approach: 2015 Property tax revenue per capita The CITY of EDINA Governmental Revenue Per Capita www.EdinaMN.gov 22 1 (1)Plymouth 888.13$ 2 (3)Minnetonka 966.09$ 3 (6)Hopkins 1,075.42$ 4 (4)Edina 1,102.25$ 5 (7)Maple Grove 1,102.34$ 6 (2)Eden Prairie 1,105.12$ 7 (8)St. Louis Park 1,136.85$ 8 (5)Richfield 1,196.78$ 9 (9)Golden Valley 1,566.33$ 10 (10)Bloomington 1,576.89$ 11 (11)Minneapolis 2,060.47$ Source: MN State Auditor website 3/2/17 PY ranking on this list shown in parenthesis. The total revenue approach: 2015 governmental revenue per capita The CITY of EDINA City Property Taxes www.EdinaMN.gov 23 The property buyer approach: The property buyer approach: 2016 City taxes on $400,000 house 2016 City taxes on $400,000 house 1 (1) Edina* $ 1,104 11 (12) Bloomington* $ 1,766 2 (2) Plymouth* $ 1,111 12 (15) St. Louis Park $ 1,842 3 (3) Eden Prairie* $ 1,318 13 (11) Burnsville* $ 1,855 4 (4) Shoreview* $ 1,410 14 (14) Apple Valley* $ 1,863 5 (5) Woodbury* $ 1,456 15 (13) Maplewood* $ 1,971 6 (6) Minnetonka* $ 1,474 16 (16) Inver Grove Heights* $ 1,972 7 (8) Shakopee* $ 1,536 17 (17) Savage* $ 2,046 8 (7) Eagan* $ 1,539 18 (18) Golden Valley $ 2,171 9 (9) Lakeville* $ 1,542 19 (19) Richfield $ 2,432 10 (10) Maple Grove* $ 1,563 20 (20) Hopkins $ 2,552 Source: LMC Property Tax calculator 11/10/16 21 (21) Minneapolis $ 2,583 PY ranking on this list shown in parenthesis. *City is a member of the MLC