HomeMy WebLinkAbout2017-08-02 City Council Work Session PacketAgenda
City Council Work Session
City of Edina, Minnesota
Edina City Hall Community Room
Wednesday, August 2, 2017
5:30 PM
I.Call To Order
II.Roll Call
III.2018-2019 Proposed Budget
IV.Adjournment
The City of Edina wants all residents to be comfortable being part of the
public process. If you need assistance in the way of hearing ampli(cation, an
interpreter, large-print documents or something else, please call 952-927-8861
72 hours in advance of the meeting.
Date: August 2, 2017 Agenda Item #: III.
To:Mayor and City Council Item Type:
From:Scott Neal, City Manager
Item Activity:
Subject:2018-2019 Proposed Budget Discussion
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
This item is for discussion only.
INTRODUCTION:
Staff has been working on the 2018-2019 budget and will have a presentation ready for the work session on
Wednesday. Key discussion items will include:
Budget Timeline
Work Plan Themes
Budget Alternatives
Tax Comparisons
ATTACHMENTS:
Description
Budget Work Session Presentation
Draft Work Plan
The CITY of
EDINA
2018-2019 Budget Process Update
August 2, 2017 Council Work Session
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 2
The CITY of
EDINABudget Timeline
April 27 Council Retreat –develop 2018-2019 Work Plan Themes
June 1 Department Heads send budget requests to Finance
July 19 ELT reviews 2018-2019 budget draft
Aug. 2 City Manager presents 2018-2019 Work Plan Themes, budget scenarios, and
challenges
Aug. 15 City Manager presents 2018-2019 budget draft to Council
Sept.6 City Council adopts preliminary 2018 property and HRA tax levy and
budget
Dec.5 Public Hearing & option to adopt 2018 final property tax levy and budget.
Dec. 19 Deadline to adopt final 2018 property tax levy and budget
www.EdinaMN.gov 3
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 4
Mission and Vision
Vision Edina
Strategic Plan
Edina
Comprehensive
Plan
2018-2019 Vision
Edina Work Plan
Capital
Improvement Plan
2018-2019
Operating Budget
Work Plan Drives Budget
VISION EDINA Work Plan (2018-2019)
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 (2018)
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 (2018)
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 (2018)
Length:1 Year
Responsibility:Employee
Approved by:Supervisor
Updates:Ongoing & in annual
Performance Review
Goal 1
Goal 2
Goal 3
Goal 4
Goal 5
Goal 6
Vision Edina Work Plan Drives Other Work Plans
The CITY of
EDINA
2016-2017
1.Focused Redevelopment
2.Future Planning
3.Intergovernmental Relations
4.Transportation & Infrastructure
5.Enterprise Stability
2018-2019
1.Maintenance of Physical Assets &
Infrastructure
2.Comprehensive Plan and Future Growth
3.Transportation & Connectivity
4.Strong Workforce
5.Inclusivity
6.Communications & Community Engagement
Council Work Plan Themes
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 8
The CITY of
EDINA
www.EdinaMN.gov 9
Edina Consolidated Budget $110M
Governmental Funds $70M
General Fund $39M
Debt Service Fund $8M
Construction Fund $10M
Special Revenue Funds, including HRA
Enterprise Funds $40M
Utility Fund $16M
Liquor Fund $13M
Park Enterprises
$10M
The CITY of
EDINATax Levy History
www.EdinaMN.gov 10
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2010 2011 2012 2013 2014 2015 2016 2017
The CITY of
EDINATax Levy Increases
www.EdinaMN.gov 11
5.54%
1.15%
1.79%1.90%
2.65%
8.18%
7.07%
6.36%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2010 2011 2012 2013 2014 2015 2016 2017
The CITY of
EDINAYearIncrease
2017 6.36%
•Weber Woods
•Comp Plan
•CIP for Streets & Bridges
2016 7.07%
•Grandview Planning Study
•Braemar Park Planning Study
•Liquor Transfer adjustment
2015 8.18%
•Braemar Field/Backyard
•Pamela Park
Past Levy Increases
www.EdinaMN.gov 12
Year Increase
2014 2.65%
2013 1.90%
2012 1.70%
2011 1.10%
2010 5.50%
•Debt for Fire Station 1
•Debt for Public Works Bldg.
The CITY of
EDINABudget Summary
www.EdinaMN.gov 13
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Levy Increases vs. General Fund
Expenditures
Total Levy Increase %Change in expenditures
Braemar
Field Levy
Liquor
revenue
decrease
The CITY of
EDINAEmployee Wages & Benefits
2017 2016 2015 2014 2013 2012 2011 2010
Edina 3.0%2.5%2.5%2.0%2.0%2.0%1.0%0.5%
www.EdinaMN.gov 14
General Wage Increase
•Firefighter and 911 Dispatcher Contracts are settled at 3% for 2018.
•Rate caps of 9% and 9% for overall LOGIS rates; Edina’s will vary
based on experience.
The CITY of
EDINA2018-2019 Budget Scenarios
•Scenario A –No Growth Levy
•Scenario B –Incremental Growth Levy
•Scenario C –Full Staffing Growth Levy
www.EdinaMN.gov 15
The CITY of
EDINABudget Scenarios
www.EdinaMN.gov 16
Draft Levy Draft Levy Draft Levy Draft Levy Draft Levy Draft Levy
2017 2018 (A)2018 (B)2018 (C)2019 (A)2019 (B)2019 (C)
General Fund 26,860,319$ 26,849,119$ 27,923,289$ 29,763,189$ 26,843,919$ 29,258,716$ 30,872,189$
7.34%-0.04%3.96%10.81%-0.02%4.78%3.73%
Arts/Culture 20,000 20,000 20,000 20,000 20,000 20,000 20,000
0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Debt Service 4,595,500 4,606,700 4,606,700 4,606,700 4,611,900 4,611,900 4,611,900
-9.45%0.24%0.24%0.24%0.11%0.11%0.11%
Construction 2,251,550 2,251,550 2,440,000 2,440,000 2,251,550 2,630,000 2,630,000
34.02%0.00%8.37%8.37%0.00%7.79%7.79%
HRA 95,000 95,000 114,000 114,000 95,000 136,800 136,800
0.00%20.00%20.00%0.00%20.00%20.00%
Total Tax Levy 33,822,369$ 33,822,369$ 35,103,989$ 36,943,889$ 33,822,369$ 36,657,416$ 38,270,889$
% Increase 6.36%0.00%3.79%9.23%0.00%4.43%3.59%
The CITY of
EDINA2018 Scenario A
•Spending and taxing levels unchanged from 2017.
•Compensation increases for union employees only.
•No increase in service levels.
•No increase in Cap Ex spending.
•Much tighter control over operating budget > less flexibility and
discretion over spending.
www.EdinaMN.gov 17
The CITY of
EDINA2018 Scenario B
•3% wage increase planned.
•6.5% rate increase for health insurance premiums.
•Increased levies for CIP, Equipment, and HRA –$209,000.
•General Fund revenues increased by $840,000.
www.EdinaMN.gov 18
The CITY of
EDINA2018 Scenario C
•3% wage increase planned.
•6.5% rate increase for health insurance premiums.
•Increased levies for CIP, Equipment, and HRA –$209,000.
•General Fund revenues increased by $840,000.
•New staff additions:
•-5 Fire
•-8 Police
•-2 Information Technology
•-1 Parks Maintenance
•-1 Parks & Recreation
•-1 Environmental Health
•-Other part-time or part-time to full-time requests.
www.EdinaMN.gov 19
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 20
The CITY of
EDINAHRA Levy for 2018
•State law allows an HRA to levy up to 0.0185% the previous year’s
taxable market value of all property in the City. This limit would
produce tax revenue of about $1.8M in Edina.
•An HRA raises its own levy separate from the City.
•Levies collected by an HRA must be used only for purposes listed in
the HRA Act.
•A $114,000 HRA levy in Edina would be about $4.60/year for a
median single family home ($501,000)
Sources: LMC Handbook for Cities, Edina Finance Dept., & Edina Assessing Division
www.EdinaMN.gov 21
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 22
The CITY of
EDINAEstimated Market Value (EMV)
www.EdinaMN.gov 23
Source: City Assessor’s Office and Hennepin County
0.7%1.0%1.4%1.7%1.9%0.7%0.7%0.9%1.2%1.3%1.6%2.2%2.1%
7.5%
9.4%
2.5%
-0.5%
-3.4%
-5.9%
-3.5%-3.6%
0.0%
7.2%
4.3%2.4%
5.0%
$(800,000,000)
$(600,000,000)
$(400,000,000)
$(200,000,000)
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Inflation/deflation due to real estate market forces Growth due to improvements
New Construction %Unimproved Properties %
The CITY of
EDINAProperty Tax History
www.EdinaMN.gov 24
Source: LMC Property Tax Calculator 7/20/17 & City Assessor’s Office
$943 $1,097
$4,550
$5,445
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
$400,000 Home
City tax Total tax
$1,056
$1,156
The CITY of
EDINAProperty Tax History
www.EdinaMN.gov 25
Source: LMC Property Tax Calculator 7/21/17 & City Assessor's Office
2010 2011 2012 2013 2014 2015 2016 2017 2018
City tax $1,020 $1,042 $1,082 $1,102 $1,140 $1,195 $1,268 $1,319 $1,379
Total tax $4,922 $5,066 $5,410 $5,449 $5,606 $5,861 $6,346 $6,253
Median Value $432,700 $411,500 $403,100 $396,300 $399,700 $438,800 $457,300 $466,500 $501,000
$1,020 $1,379
$4,922 $6,253
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
"Median" Value Home
$1,327
$1,453
The CITY of
EDINA2018 Option A Est. Levy Impact
•In 2017 the median home pays about $110 per month in property
taxes to fund all of the City provided services.
•Total EMV is increasing by about 7.1% for taxes payable in 2018. The
median value single family home is now $501,000.
•With an 0.0% City tax levy increase, the effect on the 2018 median
home would be about a:
•-0.6% increase in City property taxes.
•-$8 increase per year, or less than $1 per month.
•-$110 payment per month in 2018 City property taxes.
www.EdinaMN.gov 26
The CITY of
EDINA2018 Option B Est. Levy Impact
•With an 3.79% City tax levy increase, the effect on the 2018 median
home would be about a:
•-4.5% increase in City property taxes.
•-$60 increase per year, or about $5 per month.
•-$115 payment per month in 2018 City property taxes.
www.EdinaMN.gov 27
The CITY of
EDINA2018 Option C Est. Levy Impact
•With an 9.23% City tax levy increase, the effect on the 2018 median
home would be about a:
•-10.2% increase in City property taxes.
•-$134 increase per year, or about $11per month.
•-$121payment per month in 2018 City property taxes.
www.EdinaMN.gov 28
The CITY of
EDINAAgenda
•Timeline
•Work Plan Themes
•Budget Scenarios
•HRA Levy
•Tax Comparisons
•Discussion
www.EdinaMN.gov 29
www.EdinaMN.gov 30
The CITY of
EDINADebt Service Levy Projection
www.EdinaMN.gov 31
Park Bond
City Hall Gymnasium
Fire Station
Public Works
Braemar Field
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
The CITY of
EDINAGovernmental Revenue Per Capita
www.EdinaMN.gov 32
The total revenue approach:
2013 governmental revenue per capita
1 Plymouth $ 684.12
2 Minnetonka $ 875.60
3 Eden Prairie $ 881.88
4 Richfield $ 987.76
5 Edina $ 1,011.63
6 Hopkins $ 1,147.21
7 Maple Grove $ 1,192.77
8 St. Louis Park $ 1,240.14
9 Bloomington $ 1,488.13
10 Golden Valley $ 1,435.72
11 Minneapolis $ 2,020.35
Source: MN State Auditor website 7/7/15
The CITY of
EDINAProperty Tax Revenue Per Capita
The tax per capita approach:
2013 Property tax revenue per capita
1 Plymouth $ 399.98
2 Maple Grove $ 492.27
3 Richfield $ 515.37
4 Eden Prairie $ 520.78
5 Bloomington $ 541.53
6 St. Louis Park $ 542.23
7 Edina $ 546.40
8 Hopkins $ 575.73
9 Minnetonka $ 606.30
10 Minneapolis $ 773.91
11 Golden Valley $ 814.57
Source: MN State Auditor website 7/7/15
www.EdinaMN.gov 33
The CITY of
EDINACity Property Taxes
The property buyer approach:The property buyer approach:
2014 estimated city taxes on $400,000
house
2014 estimated city taxes on $400,000
house
1 Edina*$ 1,141 12 Burnsville*$ 1,861
2 Plymouth*$ 1,202 13 St. Louis Park $ 1,937
3 Eden Prairie*$ 1,424 14 Bloomington*$ 1,941
4 Shoreview*$ 1,495 15 Apple Valley*$ 1,995
5 Minnetonka*$ 1,559 16 Maplewood*$ 2,008
6 Eagan*$ 1,593 17 Savage*$ 2,269
7 Woodbury*$ 1,622 18 Golden Valley $ 2,466
8 Lakeville*$ 1,650 19 Hopkins $ 2,496
9 Shakopee*$ 1,673 20 Richfield $ 2,571
10 Maple Grove*$ 1,685 21 Minneapolis $ 2,976
11 Inver Grove Heights*$ 1,859 Source: LMC Property Tax calculator 7/7/15
*City is a member of the MLC
www.EdinaMN.gov 34
The CITY of
EDINADefinitions
•General Fund: The main operating fund of the City’s government
functions. Includes about $37M 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 $62M.
•Enterprise Funds: Used to account for “business-type” activities.
Total annual expenses equal about $39M
•Consolidated Budget: Approximately $100M in total revenues
and expenditures/expenses and includes all City and HRA funds,
governmental and enterprise.
www.EdinaMN.gov 35
The CITY of
EDINADefinitions
•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 around $10B.
•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 36
The CITY of
EDINADefinitions
•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 $25M of the $37M General Fund budget (68%).
•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 37
The CITY of
EDINA2019 Scenario B
•3% wage increase planned.
•15% rate increase for health insurance premiums.
•Increased levies for CIP, Equipment, and HRA –$212,800.
•General Fund revenues decreased by $70,000.
•New staff requests not included (8 FT staff and 9 Paid-on-Call
firefighters).
www.EdinaMN.gov 38
DRAFT 2017.08.02 Council Work Session
Page 1
DRAFT 2018-2019
WORK PLAN THEMES
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Sustainability Thread
Integrating sustainability allows the City to make better decisions by incorporating short- and long-
term costs.
● Incorporates financial, societal and environmental costs into projects and decision making.
● Allows more informed decision-making by incorporating lifecycle and maintenance costs.
● Meets our sustainability goals to ensure the City can continue to provide residents the highest
quality of life.
Service-Level Thread
Maintaining service-levels contributes to the overall quality of life, safety and wellbeing for our
residents and guests.
● Complies with state statutes and city code.
● Maintains adequate response times.
● Ensures resources are matched to service-level requirements.
● Implements industry “best practices” to achieve the objectives of maintenance of services levels
for the City of Edina.
Technology Thread
Investing in technology allows the City to increase efficiency, access data more quickly and make
better long-term decisions based on accurate data.
● Increases efficiency to maintain and locate data for staff, elected officials and the public.
● Reduces risk of lost data or human error.
● Allows more informed decision-making by elected officials and staff with easier data
access/analysis.
● Allows higher and more effective use of our real estate by reducing paper storage space.
● Better matches resources with expectations of residents and businesses that have their own
sophisticated technology.
DRAFT 2017.08.02 Council Work Session
Page 2
Theme
:
MAINTENANCE OF PHYSICAL ASSETS & INFRASTRUCTURE
Description:
Allocating appropriate resources to plan and manage ongoing maintenance will be key to
supporting current and future City assets. Deferred maintenance can lead to costly
unplanned repairs and replacements with decisions based on short-term implementation
costs, versus long-term maintenance costs. Properly maintained streets, water main, sanitary
sewer and storm sewer systems provide reliable and efficient operations that lessen the City’s
carbon footprint, reduce energy costs.
Goals:
1. Allocate additional general fund property tax levy to fund CIP Support Levy for
maintenance at levels of $200,000 in 2018, $300,000 in 2019, and &700,000 in 2020.
2. Create a capital replacement plan for physical buildings, plumbing, HVAC and other
mechanical systems, and FF&E that includes sustainability and ADA enhancements.
3. Develop investment plan that includes replacement timing and funding for both
playgrounds and park shelters.
4. Create and implement energy-efficiency plan for assets with an Energy Use Index (EUI)
above 120.
5. Create and implement a green building policy for City Facilities.
6. Complete construction of Water Treatment Plant No. 5. – 2019.
7. Complete ADA Plan update and develop plan for phased implementation.
8. Complete update to the Comprehensive Water Resources Management Plan.
9. Work towards full implementation of the 2016 GIS Strategic Plan.
10. Expand City’s fiber optic network to public works infrastructure.
Theme: COMPREHENSIVE PLAN & FUTURE GROWTH
Description: Redevelopment and renewal of commercial and residential real estate is essential to the
vibrancy of the community. Redevelopment will play an integral part of providing an
inclusive, high-quality of life that the Edina community expects. But without planning for the
growth and incorporating future needs, the development and maintenance of it will not be
sustainable. Incorporating sustainability principles and standards will be critical to
decoupling economic growth and greenhouse gas (GHG) emissions growth. Future growth
must be relevant for the time it was built as well as relevant for the needs of the future.
Goals: 1. Complete Comprehensive Plan Update.
2. Manage the redevelopment of the Hennepin County Library Site.
DRAFT 2017.08.02 Council Work Session
Page 3
3. Manage the Market Street redevelopment project.
4. Determine the viability of the Grandview Green.
5. Create a master plan the redevelopment of the Grandview area, including the former
Public Works site.
6. Create and implement a green building policy for new development and redevelopment.
Theme: TRANSPORTATION & CONNECTIVITY
Description: A modern and multi-modal municipal transportation system must balance the goals of
effective and efficient personal mobility with the goals of reducing the community’s carbon
footprint and negative impacts on human health and safety.
Goals: 1. Implement short- and mid-term improvements from the Grandview District
Transportation Study.
2. Implement Southdale Area Circulator pilot.
Theme: STRONG WORKFORCE
Description: Invest in workforce to maintain service levels now and into the future. Staff time is a limited
resource and the City needs to ensure staff have resources adequate to meet service-level
expectations. The City also needs to provide competitive compensation, benefits, resources
and work-life balance to recruit and retain the talent needed to deliver City services.
Goals: 1. Develop a plan to implement public safety staffing recommendations.
2. Conduct a staffing study to ensure human resources match service-level requirements.
3. When developing work plans, include staff time cost calculation to better evaluate ROI.
4. Develop and evaluate options for improving City Hall building security and efficiency.
5. Complete implementation of HRIS.
Theme: INCLUSIVITY
DRAFT 2017.08.02 Council Work Session
Page 4
Description: Promote a City that is welcoming and inclusive to all, regardless of an individual’s race, color,
creed, religion, age, sex, sexual orientation, gender expression, marital status, disability, status
with regard to public assistance, familial status or national origin. The City wants to ensure
City government works for all in the community, and that City policies and practices do not
have disparate impacts based the characteristics above.
Goals: 1. Incorporate inclusive principals into Comprehensive Plan Update, including race, religion,
age, gender, etc.
2. Provide resources and staff support to Race & Equity Task Force/Working Groups.
3. Approve 60 net new units of affordable housing.
4. Develop and implement a plan to increase diversity of the City’s workforce.
Theme: COMMUNICATIONS & COMMUNITY ENGAGEMENT
Description: Right-size community engagement to ensure investments are focused on broadening
stakeholders reached, and managing expectations and roles. To clearly understand
community needs, expectations and opinions, the City will consistently seek the input of a
broad range of stakeholders in meaningful and interactive communication. Efforts to engage
the community will utilize multiple platforms, be informative, transparent, responsive and
involve volunteers and City commissions.
Goals: 1. Develop community engagement protocols based on IAP2 Spectrum Model of Inform,
Consult, Involve, Collaborate, Empower.
2. Assign individual council members to specific intergovernmental assignments.
3. Complete implementation of electronic records management for permanent records, and
develop and implement work flows to improve accuracy and efficiency.