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