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HomeMy WebLinkAbout2018-08-08 City Work Session Minutes MINUTES OF THE WORK SESSION OF THE EDINA CITY COUNCIL WEDNESDAY, AUGUST 8, 2018 5:30 P.M. Mayor Jim Hovland called the meeting to order at 5:33 p.m. ROLL CALL Answering roll call were Members Brindle, Fischer, Staunton, Stewart and Mayor Hovland. Edina City staff attending the meeting were:Jennifer Bennerotte, Communications and Technology Services Director; Casey Casella, City Management Fellow; Susan Faus, Assistant Parks & Recreation Director; Ann Kattreh, Parks & Recreation Director; Debra Mangen, City Clerk; Chad Millner, Engineering Director; Scott Neal, City Manager; Andrea Rich, Financial Analyst; Kyle Sawyer, Assistant Finance Director; Lisa Schaefer, Assistant City Manager; and Don Uram, Finance Director. COST RECOVERY EXPECTATIONS; PARKS AND RECREATION ENTERPRISE OPERATIONS Andrea Rich, Financial Analyst and Ann Kattreh, Parks & Recreation Director explained the cost recovery calculation developed by staff to measure the financial performance of the City enterprises. Staff explained the calculations were a refinement of the performance measures included in the defined as "Operating revenue as a % of Operating expenses." The new cost recovery calculations would be: (1) Total Cost - represents the total, on-going cost of each facility. The calculation includes operating income/(loss) including City billed utility costs*. (2) Variable Cost - represents the facility's management of budget, revenue and costs, or the "variable cost" measurement. The calculation includes operating income/(loss) excluding depreciation, central services and water/sewer/storm. The Council and staff discussed the various cost recovery targets that would be incorporated into the budget beginning with the 2020-2021 Operating Budget. 2019-2023 CIP & 2019 BUDGET Scott Neal, City Manager and Don Uram, Finance Director, reviewed the components making up the City's consolidated operating budget that consists of the Governmental Funds (General Fund, Debt Service, Construction Fund and Special Revenue Funds including HRA) and Enterprise Funds (Utility Fund, Liquor Fund and Park Enterprises). Staff reminded the Council that they adopted a two-year operating budget in 2017 that covered 2018-2019 operating years. The next step in the budget process will be adopted the maximum levy in September followed by the Truth in Taxation Hearing and final budget adoption in December. This year the priority will be to review and adopt the 2019-2024 Capital Improvement Plan that was driven by the City's Work Plan. Staff reminded the Council that the 2018-19 Work Plan had four Edina City Council Work Session/ August 8, 2018 themes: Maintain assets and infrastructure, maintain services levels to best meet community needs, plan for connected and sustainable development and foster inclusive and engaged community. Mr. Neal explained the evaluation process for CIP projects and the timeline followed to date. The projected CIP levy was reviewed. Staff has identified about $56M in CIP projects over the next five years that do not have a dedicated funding source. Of the total, about $33M has been categorized as "Buildings" and $17.7M as "Parks". At the City's current CIP funding levels, there will be approximately$7,277,000 in possible funding to allocate to the projects over the next five years. To fully fund all projects, close to $10M/year would be needed. The Council and staff discussed the challenges noting when various levies for debt service ended so that other items could utilize the funding. More discussion will continue as the CIP process continues. ADJOURNMENT Mayor Hovland adjourned the meeting at 6:55 p.m. Respectfully submitted, C c bebra angen, City Clerk Minutes approved by the Edina City Council, August 2,,I, 2018. II James B. Hovland, Mayor