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HomeMy WebLinkAbout2017-08-15 City Council Work SessionAgenda City Council Work Se ssion City of Edina, Minnesota Edina City Hall Community R oom Tuesday, August 15, 2017 5:30 PM I.Call To Order II.Roll Call III.2018-2019 Budget IV.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: Augus t 15, 2017 Agenda Item #: I I I . To:Mayor and C ity C ounc il Item Type: O ther F rom:S c o tt H. Neal, C ity Manager Item Activity: Subject:2018-2019 Bud get Info rmatio n C ITY O F E D IN A 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : N o action required. F or discussion only. I N TR O D U C TI O N : S taff will present proposed 2018-2019 budget for consideration. AT TAC HME N T S : Description City Manager's 2018-2019 General Fund and Tax Levy Budget Propos al DRAFT VISION EDINA 2018-2019 Work Plan Funding 2018-2019 Budget Proces s Update DR A F T VI S I O N E D I N A 2 0 1 8 - 2 0 1 9 W o r k P l a n S u s t a i n a b i l i t y T h r e a d S e r v i c e - L e v e l T h r e a d T e c h n o l og y T h r e a d Au g u s t 1 5 , 2 0 1 7 C o u n c i l W o r k S e s s i o n . TH E M E 1 : M A I N T E N A N C E O F P H Y S I C A L A S S E T S A N D I N F R A S T RU C T U R E . Ci t y M a n a g e r ’ s B u d g e t P r o p o s a l O b j e c t i v e s 1 , 2 , 4 . Al l o c a t i n g a p p r o p r i a t e r e s o u r c e s t o p l a n a n d m a n a g e o n g o i n g m a i n t e n a n c e w i l l b e k e y t o s u p p o r t i n g c u r r en t a n d f u t u r e C i t y a s s e t s . D e f e r r e d ma i n t e n a n c e c a n l e a d t o c o s t l y u n p l a n n e d r e p a i r s a n d r e p l a c e m e n t s w i t h d e c i s i o n s b a s e d o n s h o r t - t e r m i mp l e m e n t a t i o n c o s t s , v e r s u s l o n g - te r m m a i n t e n a n c e c o s t s . P r o p e r l y m a i n t a i n e d s t r e e t s , w a t e r m a i n , s a n i t a r y s e w e r a n d s t o r m s e w e r s y s t e m s p r o v i d e r e l i a b l e a n d e f f i c i e n t op e r a t i o n s t h a t l e s s e n t h e C i t y ’ s c a r b o n f o o t p r i n t , r e d u c e e n e r g y c o s t s . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t Pr o p o s a l . Pa r t i a l l y f u n d e d o r s t i l l t o b e pr i o r i t i z e d i n O p e r a t i n g o r C I P bu d g e t s . Fu n d i n g p r e v i o u s l y d e t e r m i n e d . 1. Al l o c a t e a d d i t i o n a l g e n e r a l f u n d p r o p e r t y t a x le v y t o f u n d C I P S u p p o r t L e v y f o r ma i n t e n a n c e a t l e v e l s o f $ 2 0 0 , 0 0 0 i n 2 0 1 8 , $3 0 0 , 0 0 0 i n 2 0 1 9 , a n d & 7 0 0 , 0 0 0 i n 2 0 2 0 . O b j e c t i v e 1 . 2. Cr e a t e a c a p i t a l r e p l a c e m e n t p l a n f o r p h y s i c a l bu i l d i n g s , p l u m b i n g , H V A C a n d o t h e r me c h a n i c a l s y s t e m s , a n d F F & E t h a t i n c l u d e s su s t a i n a b i l i t y a n d A D A e n h a n c e m e n t s . Mi n i m a l c o s t . P l a n o n l y . 3. Cr e a t e a c a p i t a l r e p l a c e m e n t p l a n f o r b o t h pl a y g r o u n d s a n d p a r k s h e l t e r s , t h a t i n c l u d e s su s t a i n a b i l i t y a n d A D A e n h a n c e m e n t s . Mi n i m a l C o s t . P l a n o n l y 4. Cr e a t e a n d i m p l e m e n t e n e r g y -ef f i c i e n c y pl a n f o r a s s e t s w i t h a n E n e r g y U s e I n d e x (E U I ) a b o v e 1 2 0 . Pl a n o n l y . C A S . 5. Cr e a t e a n d i m p l e m e n t a g r e e n b u i l d i n g po l i c y f o r C i t y F a c i l i t i e s . Pl a n o n l y . CA S . 6. Wo r k t o w a r d s f u l l i m p l e m e n t a t i o n o f t h e 20 1 6 G I S S t r a t e g i c P l a n . No t f u l l y fu n d e d i n C I P u n t i l 2 0 2 0 . C I P # 1 5 - 1 8 3 . 7. Ex p a n d C i t y ’ s f i b e r o p t i c n e t w o r k t o p u b l i c wo r k s i n f r a s t r u c t u r e . CI P # 1 5 - 18 4 c o u l d u s e U t i l i t y F u n d . 8. AD A P l a n u p d a t e a n d d e v e l o p p l a n f o r ph a s e d i m p l e m e n t a t i o n . 9. Co m p l e te c o n s t r u c t i o n o f W a t e r Tr e a t m e n t P l a n t N o . 5 . – 2 0 1 9 . Ut i l i t y F u n d . C I P # 1 5 - 1 6 2 . 10 . Co m p l e t e u p d a t e t o t h e Co m p r e h e n s i v e W a t e r R e s o u r c e s Ma n a g e m e n t P l a n . Utility Fu n d . C I P # 1 5 - 1 7 0 TH E M E 2 : C O M P R E H E N S I V E P L A N & F U T U R E G R O W T H Ci t y M a n a g e r ’ s B u d g e t P r o p o s a l O b j e c t i v e 9 . Re d e v e l o p m e n t a n d r e n e w a l o f c o m m e r c i a l a n d r e s i d e n ti a l r e a l e s t a t e i s e s s e n t i a l t o t h e v i b r a n c y o f t h e c o m m u n i t y . R e d e v e l o p m e n t w i l l p l a y an i n t e g r a l p a r t o f p r o v i d i n g a n i n c l u s i v e , h i g h - q u al i t y o f l i f e t h a t t h e E d i n a c o m m u n i t y e x p e c t s . B u t w i t h o u t p l a n n i n g f o r t h e g r o w t h a n d DR A F T VI S I O N E D I N A 2 0 1 8 - 2 0 1 9 W o r k P l a n S u s t a i n a b i l i t y T h r e a d S e r v i c e - L e v e l T h r e a d T e c h n o l og y T h r e a d Au g u s t 1 5 , 2 0 1 7 C o u n c i l W o r k S e s s i o n . in c o r p o r a t i n g f u t u r e n e e d s , t h e d e v e l o p m e n t a n d m a i nt e n a n c e o f i t w i l l n o t b e s u s t a i n a b l e . I n c o r p o r a t i ng s u s t a i n a b i l i t y p r i n c i p l e s a n d st a n d a r d s w i l l b e c r i t i c a l t o d e c o u p l i n g e c o n o m i c g ro w t h a n d g r e e n h o u s e g a s ( G H G ) e m i s s i o n s g r o w t h . F ut u r e g r o w t h m u s t b e r e l e v a n t f o r th e t i m e i t w a s b u i l t a s w e l l a s r e l e v a n t f o r t h e n ee d s o f t h e f u t u r e . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t Pr o p o s a l . Pa r t i a l l y f u n d e d o r s t i l l t o b e p r i o r i t i z e d in O p e r a t i n g o r C I P b u d g e t s . Fu n d i ng p r e v i o u s l y de t e r m i n e d . 1. Ma n a g e t h e M a r k e t S t r e e t r e d e v e l o p m e n t pr o j e c t . H R A 2. De t e r m i n e t h e v i a b i l i t y o f t h e G r a n d v i e w Gr e e n . H R A / E d g e f u n d 3. Cr e a t e a m a s t e r p l a n t h e r e d e v e l o p m e n t o f t h e Gr a n d v i e w a r e a , i n c l u d i n g t h e f o r m e r P u b l i c Wo r k s s i t e . O b j e c t i v e 9 . H R A / G r a n d v i e w 2 T I F 4. Cr e a t e a n d i m p l e m e n t a g r e e n b u i l d i n g po l i c y f o r n e w d e v e l o p m e n t a n d re d e v e l o p m e n t . Mi n i m a l c o s t s t o de v e l o p p l a n . U n k n o w n c o s t s t o im p l e m e n t . 5. Id e n t i f y f u n d i n g s o u r c e a n d t i m e l i n e f o r im p l e m e n t a t i o n o f p a r k m a s t e r p l a n s - Fr e d , A r d e n P a r k o r B r a e m a r P a r k . Mi n i m a l c o s t s t o d e v e l o p p l a n . U n k n o w n co s t s t o i m p l e m e n t . 6. Co m p l e t e t h e C o m p r e h e n s i v e Pl a n U p d a t e . 7. Ma n a g e t h e r e d e v e l o p m e n t o f th e H e n n e p i n C o u n t y L i b r a r y Si t e . Funded. Re i m b u r s e m e n t f r o m He n n e p i n C o u n t y . TH E M E 3 : T R A N S P O R T A T I O N & C O N N E C T I V I T Y Ci t y M a n a g e r ’ s B u d g e t P r o p o s a l O b j e c t i v e 6 . A m o d e r n a n d m u l t i - m o d a l m u n i c i p a l t r a n s p o r t a t i o n s ys t e m m u s t b a l a n c e t h e g o a l s o f e f f e c t i v e a n d e f f i c ie n t p e r s o n a l m o b i l i t y w i t h t h e g o a l s of r e d u c i n g t h e c o m m u n i t y ’ s c a r b o n f o o t p r i n t a n d n e ga t i v e i m p a c t s o n h u m a n h e a l t h a n d s a f e t y . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t P r o p o s a l . Pa r t i a l l y f u n d e d o r s t i l l t o b e p r i o r i t i z e d i n O p e r ating or CIP bu d g e t s . 1. Im p l e m e n t S o u t h d a l e A r e a C i r c u l a t o r p i l o t . Ob j e c t i v e 6 . 2. Im p l e m e n t s h o r t - an d m i d -te r m i m p r o v e m e n t s f r o m t h e G r a n d v i e w Di s t r i c t T r a n s p o r t a t i o n S t u d y . CI P 1 7 - 0 7 1 , 1 7 - 0 1 2 , 1 7 - 0 1 4 , 1 7 - 01 5 , 1 7 - 0 7 3 , 1 7 - 0 7 4 s o m e a g e n c y f u n d i n g a n d T I F f u n ding. TH E M E 4 : S T R O N G W O R K F O R C E Ci t y M a n a g e r ’ s B u d g e t P r o p o s a l O b j e c t i v e s 3 , 5 . DR A F T VI S I O N E D I N A 2 0 1 8 - 2 0 1 9 W o r k P l a n S u s t a i n a b i l i t y T h r e a d S e r v i c e - L e v e l T h r e a d T e c h n o l og y T h r e a d Au g u s t 1 5 , 2 0 1 7 C o u n c i l W o r k S e s s i o n . In v e s t i n w o r k f o r c e t o m a i n t a i n s e r v i c e l e v e l s n o w an d i n t o t h e f u t u r e . S t a f f t i m e i s a l i m i t e d r e s o u r ce a n d t h e C i t y n e e d s t o e n s u r e s t a f f h a v e re s o u r c e s a d e q u a t e t o m e e t s e r v i c e - l e v e l e x p e c t a t i o ns . T h e C i t y a l s o n e e d s t o p r o v i d e c o m p e t i t i v e c o m p en s a t i o n , b e n e f i t s , r e s o u r c e s a n d w o r k - li f e b a l a n c e t o r e c r u i t a n d r e t a i n t h e t a l e n t n e e d e d t o d e l i v e r C i t y s e r v i c e s . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t P r o p o s a l . Pa r t i a l l y f u n d e d o r s t i l l t o b e p r i o r i t i z e d in O p e r a t i n g o r C I P b u d g e t s . Fu n d i n g p r e v i o u s l y de t e r m i n e d . 1. De v e l o p a p l a n t o i m p l e m e n t p u b l i c s a f e t y st a f f i n g r e c o m m e n d a t i o n s . Fu n d e d . Ob j e c t i v e 3 . 2. Wh e n d e v e l o p i n g w o r k p l a n s , i n c l u d e s t a f f t i m e co s t c a l c u l a t i o n t o b e t t e r e v a l u a t e R O I . Mi n i m a l co s t . 3. Co n d u c t a s t a f f i n g s t u d y t o e n s u r e h u m a n re s o u r c e s m a t c h s e r v i c e - l e v e l r e q u i r e m e n t s . 4. De v e l o p a n d e v a l u a t e o p t i o n s f o r i m p r o v i n g Ci t y H a l l b u i l d i n g s e c u r i t y a n d e f f i c i e n c y . No t fu n d e d . C I P 1 7 - 1 9 0 . 5. Co m p l e t e i m p l e m e n t a t i o n of H R I S F u n d e d CIP 17- 19 2 . TH E M E 5 : I N C L U S I V I T Y Ci t y M a n a g e r ’ s B u d g e t P r o p o s a l O b j e c t i v e s 8 , 1 0 . Pr o m o t e a C i t y t h a t i s w e l c o m i n g a n d i n c l u s i v e t o a ll , r e g a r d l e s s o f a n i n d i v i d u a l ’ s r a c e , c o l o r , c r e e d, r e l i g i o n , a g e , s e x , s e x u a l o r i e n t a t i o n , ge n d e r e x p r e s s i o n , m a r i t a l s t a t u s , d i s a b i l i t y , s t a t us w i t h r e g a r d t o p u b l i c a s s i s t a n c e , f a m i l i a l s t a t u s o r n a t i o n a l o r i g i n . T h e C i t y w a n t s t o en s u r e C i t y g o v e r n m e n t w o r k s f o r a l l i n t h e c o m m u n i ty , a n d t h a t C i t y p o l i c i e s a n d p r a c t i c e s d o n o t h a v e d i s p a r a t e i m p a c t s b a s e d t h e ch a r a c t e r i s t i c s a b o v e . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t P r o p os a l . Fu n d i n g p r e v i o u s l y d e t e r m i n e d . 1. Pr o v i d e r e s o u r c e s a n d s t a f f s u p p o r t t o R a c e & E q u i t y T a s k Fo r c e / W o r k i n g G r o u p s . Fu n d e d . O b j e c t i v e 8 . 2. Ap p r o v e 6 0 n e t n e w u n i t s o f a f f o r d a b l e h o u s i n g . O b j e c t i v e 1 0 . Mi n i m a l c o s t . 3. De v e l o p a n d i m p l e m e n t a p l a n t o i n c r e a s e d i v e r s i t y of t h e C i t y ’ s wo r k f o r c e . Mi n i m a l c o s t . 4. In c o r p o r a t e i n c l u s i v e p r i n c i p a l s i n t o C o m p r e h e n s i v e Plan Up d a t e , i n c l u d i n g r a c e , r e l i g i o n , a g e , g e n d e r , e t c . Fu n d e d . W i l l b e i n c l u d e d i n C o m p P l a n U p d a t e p r o j e ct. TH E M E 6 : C O M M U N I C A T I O N S & C O M M U N I T Y E N G A G E M E N T DR A F T VI S I O N E D I N A 2 0 1 8 - 2 0 1 9 W o r k P l a n S u s t a i n a b i l i t y T h r e a d S e r v i c e - L e v e l T h r e a d T e c h n o l og y T h r e a d Au g u s t 1 5 , 2 0 1 7 C o u n c i l W o r k S e s s i o n . Ri g h t - s i z e c o m m u n i t y e n g a g e m e n t t o e n s u r e i n v e s t m e n ts a r e f o c u s e d o n b r o a d e n i n g s t a k e h o l d e r s r e a c h e d , an d m a n a g i n g e x p e c t a t i o n s an d r o l e s . T o c l e a r l y u n d e r s t a n d c o m m u n i t y n e e d s , e xp e c t a t i o n s a n d o p i n i o n s , t h e C i t y w i l l c o n s i s t e n t l y s e e k t h e i n p u t o f a b r o a d r a n g e o f st a k e h o l d e r s i n m e a n i n g f u l a n d i n t e r a c t i v e c o m m u n i c at i o n . E f f o r t s t o e n g a g e t h e c o m m u n i t y w i l l u t i l i z e m u l t i p l e p l a t f o r m s , b e in f o r m a t i v e , t r a n s p a r e n t , r e s p o n s i v e a n d i n v o l v e v o lu n t e e r s a n d C i t y c o m m i s s i o n s . Fu n d e d i n C i t y M a n a g e r ’ s B u d g e t P r o p o s a l . Pa r t i a l l y f u n d e d o r s t i l l t o b e p r i o r i t i z e d i n O p e r ating or CI P b u d g e t s . 1. De v e l o p c o m m u n i t y e n g a g e m e n t p r o t o c o l s b a s e d o n I A P 2 Sp e c t r u m M o d e l o f I n f o r m , C o n s u l t , I n v o l v e , C o l l a b o ra t e , Em p o w e r o r o t h e r . 2. As s i g n i n d i v i d u a l c o u n c i l m e m b e r s t o s p e c i f i c in t e r g o v e r n m e n t a l a s s i g n m e n t s . 3. Co m p l e t e i m p l e m e n t a t i o n o f e l e c t r o n i c r e c o r d s m a n a g ement for pe r m a n e n t r e c o r d s , a n d d e v e l o p a n d i m p l e m e n t w o r k f lows to im p r o v e a c c u r a c y a n d e f f i c i e n c y . CI P 1 5 - 2 1 1 4. Ap p r o v e p o l i c i e s , i d e n t i f y f u n d i n g a n d e s t a b l i s h t i meline for im p l e m e n t a t i o n o f b o d y - w o r n c a m e r a i n i t i a t i v e f o r P olice De p a r t m e n t . No t f u n d e d . C I P 1 7 - 0 5 3 d o e s n o t i n c l u d e st o r a g e a n d i n c r e a s e d s t a f f . Su s t a i n a b i l i t y T h r e a d Se r v i c e -Le v e l T h r e a d Te c h n o l o g y T h r e a d In t e g r a t i n g s u s t a i n a b i l i t y a l l o w s t h e Ci t y t o m a k e b e t t e r d e c i s i o n s b y in c o r p o r a t i n g s h o r t - a n d l o n g - t e r m co s t s . ● In c o r p o r a t e s f i n a n c i a l , s o c i e t a l an d e n v i r o n m e n t a l c o s t s i n t o pr o j e c t s a n d d e c i s i o n m a k i n g . ● Al l o w s m o r e i n f o r m e d d e c i s i o n - ma k i n g b y i n c o r p o r a t i n g l i f e c y c l e an d m a i n t e n a n c e c o s t s . ● Me e t s o u r s u s t a i n a b i l i t y g o a l s t o en s u r e t h e C i t y c a n c o n t i n u e t o pr o v i d e r e s i d e n t s t h e h i g h e s t qu a l i t y o f l i f e . Ma i n t a i n i n g s e r v i c e - l e v e l s co n t r i b u t e s t o t h e o v e r a l l q u a l i t y of l i f e , s a f e t y a n d w e l l b e i n g f o r ou r r e s i d e n t s a n d g u e s t s . ● Co m p l i e s w i t h s t a t e s t a t u t e s an d c i t y c o d e . ● Ma i n t a i n s a d e q u a t e r e s p o n s e ti m e s . ● En s u r e s r e s o u r c e s a r e m a t c h e d to s e r v i c e - l e v e l r e q u i r e m e n t s . Im p l e m e n t s i n d u s t r y “ b e s t pr a c t i c e s ” t o a c h i e v e t h e ob j e c t i v e s o f m a i n t e n a n c e o f se r v i c e s l e v e l s f o r t h e C i t y o f Ed i n a . In v e s t i n g i n t e c h n o l o g y a l l o w s t h e C i t y t o i n c r e a s e ef f i c i e n c y , a c c e s s d a t a m o r e q u i c k l y a n d m a k e b e t t e r long- te r m d e c i s i o n s b a s e d o n a c c u r a t e d a t a . ● In c r e a s e s e f f i c i e n c y t o m a i n t a i n a n d l o c a t e d a t a f o r staff, el e c t e d o f f i c i a l s a n d t h e p u b l i c . ● Re d u c e s r i s k o f l o s t d a t a o r h u m a n e r r o r . ● Al l o w s m o r e i n f o r m e d d e c i s i o n - m a k i n g b y e l e c t e d of f i c i a l s a n d s t a f f w i t h e a s i e r d a t a a c c e s s / a n a l y s i s. ● Al l o w s h i g h e r a n d m o r e e f f e c t i v e u s e o f o u r r e a l e s tate by r e d u c i n g p a p e r s t o r a g e s p a c e . Be t t e r m a t c h e s r e s o u r c e s w i t h e x p e c t a t i o n s o f r e s i d ents an d b u s i n e s s e s t h a t h a v e t h e i r o w n s o p h i s t i c a t e d te c h n o l o g y . The CITY of EDINA 2018-2019 Budget Process Update August 15, 2017 Council Work Session The CITY of EDINAAgenda •Timeline •Levy History •Proposed Budget •Tax Comparisons 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 EDINA www.EdinaMN.gov 4 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 5 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 2012 2013 2014 2015 2016 2017 2018 2019 The CITY of EDINATax Levy Increases www.EdinaMN.gov 6 5.54% 1.15% 1.79%1.90% 2.65% 8.18% 7.07% 6.36% 5.80% 4.60% 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 2018 2019 The CITY of EDINATotal Levy vs. Levy Increase www.EdinaMN.gov 7 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 2012 2013 2014 2015 2016 2017 2018 2019 5.54% 1.15% 1.79%1.90% 2.65% 8.18% 7.07% 6.36% 5.80% 4.60% 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 2018 2019 www.EdinaMN.gov 8 Proposed Proposed 2017 2018 2019 General Fund $26,860,319 $28,492,366 $30,008,233 7.34%6.08%11.72% Arts/Culture 20,000 20,000 20,000 0.00%0.00%0.00% Debt Service 4,595,500 4,606,700 4,611,900 -9.45%0.24%0.36% Construction 2,251,550 2,540,000 2,630,000 34.02%12.81%16.81% HRA 95,000 125,000 160,000 31.58%68.42% Total Tax Levy $33,822,369 $35,784,066 $37,430,133 % Increase 6.36%5.80%4.60% The CITY of EDINACity Manager Proposed Budget The proposed 2018-2019 General Fund budget has been prepared to reflect four broad areas of emphasis: •Capital Reinvestment in Public Facilities and Infrastructure •Public Safety •Housing •Environmental Protection www.EdinaMN.gov 9 The CITY of EDINACity Manager Proposed Budget The four broad areas of emphasis are distributed within 10 budget Objectives. Each budget Objective is further defined into: > Strategy > Tactics > Outcomes www.EdinaMN.gov 10 The CITY of EDINACity Manager Proposed Budget What does this budget proposal accomplish in the community? www.EdinaMN.gov 11 The CITY of EDINACommunity Accomplishments •Preserves current feelings of public safety the community. •Repairs, replaces and modernizes the City's parks, playgrounds, shelters, trails, service vehicles, equipment, facilities, streets and other infrastructure. •Reduces the level of GHG in our atmosphere. •Protects neighbors of residential redevelopment sites. •Rewards City government workforce for excellent performance www.EdinaMN.gov 12 The CITY of EDINACommunity Accomplishments •Enables residents concerned with neighborhood traffic issues to receive quicker responses to their questions and concerns. •Creates a new transit option in the Southdale area. •Makes the community more welcoming and inclusive. •Inspires the reawakening and redevelopment of the Grandview District. •Continues other current services at current levels into 2018 and 2019 www.EdinaMN.gov 13 The CITY of EDINACity Manager Proposed Budget What does this budget proposal cost the community? www.EdinaMN.gov 14 The CITY of EDINACity Manager Budget Proposal •Increase Total Tax Levy by $1,961,697 (+5.8%) in 2018 and by $1,646,067 (+4.6%) in 2019 •Increase CAS Franchise Fee from $0.50/month to $0.95/month in 2018 and to $1.45/month in 2019 •Increase building, mechanical, plumbing, grading and other development permits by 2% in 2018 and 2019 •Adjust Parks & Rec, Engineering and other user fees as required www.EdinaMN.gov 15 The CITY of EDINAProperty Tax History www.EdinaMN.gov 16 Source: LMC Property Tax Calculator 7/20/17 & City Assessor’s Office $943 $1,013 $1,073 $1,113 $1,141 $1,086 $1,104 $1,130 $1,119 $4,550 $4,925 $5,365 $5,504 $5,610 $5,305 $5,475 $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 Value Home City tax Total tax The CITY of EDINAProperty Tax History www.EdinaMN.gov 17 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 $1,327 $1,405 Total tax $4,922 $5,066 $5,410 $5,449 $5,606 $5,861 $6,346 $6,367 Median Value $432,700 $411,500 $403,100 $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $1,020 $1,405 $4,922 $6,367 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 "Median" Value Home The CITY of EDINAHistorical EMV, City Tax and Levy Changes www.EdinaMN.gov 18 2010 2011 2012 2013 2014 2015 2016 2017 2018 EMV -1.44%-4.90%-2.04%-1.69%0.86%9.78%4.22%2.01%7.40% City Tax 0.79%2.16%3.84%1.85%3.45%4.82%6.11%4.65%5.88% Levy 5.54%1.15%1.79%1.90%2.65%8.18%7.07%6.36%5.80% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Median Value Home The CITY of EDINAEstimated 2018 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 7.4% for taxes payable in 2018. The median value single family home is now $501,000. •With an 5.8% City tax levy increase, the effect on the 2018 median home would be about a: •-5.8% increase in City property taxes. •-$78 increase per year, or less than $7 per month. •-$117 payment per month in 2018 City property taxes. www.EdinaMN.gov 19 The CITY of EDINACity Manager Budget Proposal Next Steps: •Certify Preliminary Tax Levy on September 6 •Preliminary Tax Notices Distributed in Mid-November •Public Hearing for Proposed Budget on December 5 •Final Date to Take Action on 2018 Budget is December 19 www.EdinaMN.gov 20 The CITY of EDINA Questions / Discussion www.EdinaMN.gov 21 The CITY of EDINADebt Service Levy Projection www.EdinaMN.gov 22 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 23 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 24 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 25 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 26 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 27 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 28 The CITY of EDINAPositions Requested from Depts. •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 29