HomeMy WebLinkAbout2013-08-05_WORK SESSIONAGENDA
CITY COUNCIL WORK SESSION
CITY OF EDINA, MINNESOTA
COMMUNITY ROOM
AUGUST 5 2013
5:30 P.M.
CALL TO ORDER
ROLL CALL
III. 2014 -2015 WORK PLAN
IV. 2014 -2015 OPERATING BUDGET
V. 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 amplification, an interpreter, large -print documents or something else, please call 952-
927 -8861 72 hours in advance of the meeting.
11 SCHEDULE OF UPCOMING MEETINGS /DATES /EVENTS II
Mon
Aug 5
Work Session — 2014 -2015 Proposed Work Plan & Budget
5:30 P.M.
COMMUNITY ROOM
Mon
Aug 5
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Tues
Aug 20
Work Session — Sports Dome
5:30 P.M.
COMMUNITY ROOM
Tues
Aug 20
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Mon
Sep 2
LABOR DAY HOLIDAY OBSERVED — City Hall Closed
Tues
Sep 3
Work Session — Pentagon Park & Fairview Southdale Hospital ER
5:00 P.M.
COMMUNITY ROOM
Tues
Sep 3
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Tues
Sep 17
Work Session —joint Meeting with HPB
5:30 P.M.
COMMUNITY ROOM
Tues
Sep 17
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Tues
Oct I
Work Session — BC 2014 Work Plan Review
5:30 P.M.
COMMUNITY ROOM
Tues
Oct I
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Mon
Oct 14
Work Session — Business Meeting/Utility Rate Study
5:30 P.M.
COMMUNITY ROOM
Mon
Oct 14
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Mon
Nov 4
Work Session — Human Services Task Force Study
5:30 P.M.
COMMUNITY ROOM
Mon
Nov 4
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Mon
Nov I I
VETERANS DAY HOLIDAY OBSERVED — City Hall Closed
Tues
Nov 19
Work Session — Final Budget Review /Finalize 2014Work Plan
5:30 P.M.
COMMUNITY ROOM
Tues
Nov 19
Regular Meeting
7:00 P.M.
COUNCIL CHAMBERS
Thur
Nov 28
THANKSGIVING HOLIDAY OBSERVED — City Hall Closed
Fri
Nov 29
DAY AFTER THANKSGIVING HOLIDAY OBSERVED — City Hall
Closed
8/5/2013
0,11A
2014 -2015 Work Plan and
Budget Update
Council Work Session
August 5, 2013
• City Manager Recommendations /Targets
CdyalEd— com
4 112
Agenda ?rr
• Process and Timeline
• Updated Budget Challenges
• City Manager Recommendations /Targets
• Tax Capacity & Valuation
Cayoffdma —m
8/5/2013
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Process and Timeline
CityotEdno.com
12014-2015
Work Plan Themes
1.
Infrastructure
2.
Workforce
3.
Communications & Engagement
4.
Community Vision
5.
RNAV
6.
Commercial & Mixed Use Redevelopment
8/5/2013
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Updated Budget Challenges
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Work Plan and Budget Timeline \VV /lll///
Feb -April
Staff
Budget kickoff and data gathering
May 3 -4
Council
Strategic retreat to determine 2014 -15 work plan
themes
May 21
Work Session
Review budget process, challenges and themes
June
Citizen
Partner with Citizen's League & hold 3 citizen
Engagement
engagement events to collect input
June -July
Staff
Develop work plan and budget details
Aug 5
Work Session
City Manager recommends 2014 -2015 work plan
and budget to Council
Sep 3
Council Meeting
Council adopts preliminary 2014 budget & levy
Dec '3
Council Meeting
Public hearing - Operating budget and levy
Dec 17
Council Meeting
Adopt final budget
CayotEaina mm
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Updated Budget Challenges
CityatEOina. com
8/5/2013
oil
Budget challenges to consider for 2014 -15
(May version)
• About 70 total requests for $5,000 or more submitted for all
funds and departments
• Total expenditure requests are about $1.4M, although there
were also about $700,000 of new revenue opportunities
identified & requested
• Eight new full -time positions were requested
• Several requests also included adjustments to PT staff levels
• Seven requests were to cover additional health care costs that
we expect as a result of PPACA
2013 budgets. So even though we may not be implementing many "new"
CityotEtlinecom
oil
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dg et challenges to consider for 2014 -15
pdates since May)
• 3% levy limit for tax capacity levies payable in 2014
• The City will be exempt from certain sales taxes beginning January 1, 2014.
We will continue to file sales tax returns with the state every month and pay
sales tax on many things, especially for our enterprise operations.
• PPACA "pay or play" enforcement has changed
• Health insurance rates will increase 13.3% in 2014
• PERA rates are increasing for Police & Fire fund
• We have added many new services and.costs since development of the 2012-
2013 budgets. So even though we may not be implementing many "new"
services at this time, we do need to budget for changes in service levels that
have already happened in the past 2 years but not budgeted for.
CayolEtlina.com
8/5/2013
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City Manager
Recommendations /Targets
are already being implemented
CdyofEdinacom
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2014 -2015 Budget Themes
• Few new services - most of proposed services
are already being implemented
• Expenditure Themes
— Workforce
— Technology
— Capital
CayofEdina.com
8/5/2013
r2014-2015
Budget Themes
• Workforce- related costs:
— New positions added during 2012 -13 cycle
— Positions newly eligible for health insurance /penalty
— Compensation
— Health insurance
• 13.3% rate increase
• Proposed budget addition of $200k would cover 6 -7% of cost
— Workers compensation insurance
— Police /Fire pension increases
CityofEdina com
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2014 -2015 Budget Themes
• Technology
— Microsoft licenses
— Insight (Finance)
— Max solutions (Parks and Recreation)
— Neogov (HR)
• Capital — includes $200k towards capital expenditures
in 2015.
CitycfEdna.com
OF
2014 -2015 Budget Status
3% increase in tax capacity levies subject to the levy limit
would equal about $680k in new funding available.
Gap still remains between levy increase and proposed
spending. Will need to adjust spending and /or revenue
estimates
8/5/2013
7
`C LtIL
Lev y "what if' scenarios'
WFMT F_.
2% gonad wdWbomn arcre� on norda rlWan! and A norrwage experKM s la 20 M2015 (FOMC longterm goal 5 2%)
20% market rate adNstrnats for all mooyees n 70142015, aceµ where noeasg hate ateady been ne9ahated and seftk�d
$0 heath n9aance urcreases 6r at emp"ees arch no duvW n co ege a pokcks
No "Lop" combuction prgeds are staded and no delft m Issued ihat regres GO %I pM
N sewe lend changes we -planaded January 1, 2014
1H EN THE TAX LEVY "EASES YIGM BE
102%
82%
6.0%
4.0% 7015 o.s
4-0%
t zbla taan
z Jtx
salt
0.0%
Base so'nar.o Cvmnt I.Wt 5474.000wne. $90050 nae.
9a�'iahew� sw�/rpuem
CURRENT TARGET INCLUDES:
Ircmases to CIP km(mg m 2015 (xiastrudwe)
kttleases to hie n 2014 6 2015 traklace)
FacH�es to metes retaate assuffgbons
8/5/2013
7
8/5/2013
v,
What isn't in the currently recommended
budget?
11:ECITY
• Changes in Dispatch contracts for Richfield or Golden Valley
• Changes to Golf Course fund operations
•. Payments for future debt issues
O�F EDINA
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Current Budget Targets:`'
ACTUAL
BUDGET
BUDGET
% BUDGET %
2012
2013
2014
INCREASE 2016 INCREASE
REVENUES
PROPERTYTAXES�
21.269149
21,711.894
22,3:6.496
3.15% 23,321,495 4.13%
CABLE FRANCHISE TAXES
771183
730,000
746,000
2.05% 760,000 2,01%
LICENSES 6 PERMITS
3.126,541
2.866.814
3.029,000
5,66% 3.0 80,000 2.01%
INTERGOVERNMENTAL REVENUE
804437
760,000
776.0110
1.97% 791,000 2.06%
CHARGES FOR SERVICE
3,651,098
3,277,248
3,459,000
5.52% 3.626,000 1,94%
FINES 6 FORFEITURES
1,083,834
1,034,000
1,065,000
2.03% 1,076,000 1,99%
OTHER REVENUES B TRANSFERS
1,328.197
1420,100
1,420,000
-0,01% 1420,000
TOTAL REVENUES
32,135,649
31,800,056
32477.496
3.39% 33,993495 3.36%
EXPENDITURES
SA LARIESIBENEFITS 9 STEP
21,148496
22,427,600
23,364,DD0
4,13% 24.048,000 2.98%
CONTRACTUAL SVCS.
3,881,866
4,346,367
4,429,895
1.92% 4.538.896 246%
COMMODITIES
1,688,779
1,682,529
1,633,600
-2.91% 1,667.600 208%
CENTRAL SERVICES
3,210,295
3,343,560
3,460,000
348% 3,629,OOD 1.97%
CAPITAL OIJT LAY
200,000
TOTAL EXPENDITURES
29,928436
31,800,056
32.877.496
3.39% 33,993,495 3,36%
. _.... ..
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tyotEaina:com
8/5/2013
v,
What isn't in the currently recommended
budget?
• Changes in Dispatch contracts for Richfield or Golden Valley
• Changes to Golf Course fund operations
•. Payments for future debt issues
• Full funding of Equipment Replacement Program
' '- "-C tyofEE na.com -
8/5/2013
8/5/2013
12012
HRA Levy Facts
• 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 $1.6M 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 $25,000 HRA levy in Edina would be $1'.06 /year for a
median single family home (about $400k)
Sources: LMC Handbook for Cities, Edina Finance Dept., & Edina Assessing Division
4. Transfer $797,872 to the Construction Fund for 2013 CIP projects
_. cmcfEaina com
12012
General Fund reserves
• 2012 audit results revealed about $1.7M in "unassigned"
General Fund reserves above our policy goal.
• 2013 CIP plans were based on $800K in transfers of this
unassigned balance to the Construction Fund.
• About $900K in reserves are still available.
• Recommended allocations:
1. Transfer $300K to Arena fund for unplanned expense from 2012
2. Transfer $300K to Golf fund to start stabilizing the fund deficit
3. Transfer $300K to Equipment Replacement Program
4. Transfer $797,872 to the Construction Fund for 2013 CIP projects
_ 01yofEtlma. com
8/5/2013
10
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Tax Capacity & Valuation
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CdyolEdlna.com
8/5/2013
10
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Tax capacity & valuation facts �vJl/
• Edina's total tax capacity will increase 1.8% for taxes payable in
2014
• 69% of Edinds tax capacity is in residential property
• For taxes payable in 2014 (assessed value as of 1/13), the
median single family home value in Edina is approximately
$400,000. The median value will not change significantly from
last year.
• If Edina levies up to the 3% limit for operations + our existing
debt levies as currently included in the City Manager's
recommendation, the City's portion of taxes on the median
$400,000 home would increase $24 /year, or about 2.2 %.*
2reliminary estimate from Henne in Co. & Edina Assessing is sub'ect to chanize
Caydrdmo.com
8/5/2013
10
8/5/2013
11
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Budget Timeline
Feb 13
ELT Staff Meeting
Budget kickoff
Apr 1
ELT
Budget change forms & narrative drafts due
May 21
Work Session
Review budget process, challenges and themes
June
Citizen
Partner with Citizen's League & hold 3 citizen
Engagement
engagement events to collect input
June -July
ELT
Review line by line details & make detailed requests
Aug 5
Work Session
City Manager makes 2014 -2015 budget
recommendation to Council
Sep 3
Council Meeting
Council adopts preliminary 2014 budget & levy
Dec 3
Council Meeting
Public hearing — Operating budget and levy
Dec 17
Council Meeting
Adopt final budget
CityolEdina com
8/5/2013
11
�m
Questions?
CayotEdlna.com
8/5/2013
11
2014 -15 Strategic Priorities
Description
The City is committed to preserving and
expanding infrastructure systems to maintain
reliability and quality, and to meet the
demands of expansion and redevelopment.
This will be accomplished through a long -term
financing plan that balances prudence and
community expectations.
• Financing
• Preservation
• Expansion
Infrastructure
Kev Performance Indicators
• Construction Fund structural deficit
eliminated by March 1, 2020.
• Centennial Lakes TIF spending plan
adopted and implemented by 12/31/15
• Municipal facilities upgrade scope
finalized by 12/31/15.
• Twenty -five thousand feet of bicycle
improvements and 5,200 feet of
sidewalks are completed each year.
Goals
• Convert a half million in unreserved General
Fund balance to operating budget by
tightening revenue and expenditure
estimates and increasing construction fund
line item over the two year period.
• Meet with Utility companies once each year
to assess future plans and to advocate for
interests of Edina residents and businesses.
• Complete physical evaluation of all City
buildings and facilities in order to develop a
comprehensive maintenance plan and
replacement schedule by 6/30/14.
• Complete Living Streets Plan by 12/31/14
and related projects:
o France Ave pedestrian crossings by
12/31/14
o 54`h Street by 12/31/14
o Tracy Avenue plan by 12/31/15
• Complete driving range and cart path
projects at Braemar Golf Course by
12/31/15.
• Complete Parks Master Plan by 12/31/14
• Centennial Lakes TIF spending plan adopted
and implemented by 12/31/15
• Southeast Edina sanitary sewer capacity
study finalized by 4/1/14 for inclusion in the
CIP.
• Sports Dome?
Commercial and Mixed Use Redeve
uescription
Development and renewal of commercial and
residential areas is essential to the on -going
health of the city. The City will focus on the
50th & France and Grandview areas to create
maximum positive impact. Tax increment
financing and other tools will be used to
provide incentives to develop in ways
consistent with the City's land use, transit,
density and health goals.
• 50th & France
• Grandview
• TIF
• Transit /Land use /Density /Health
Key Performance Indicators
• Increase public parking capacity at 50th
and France by 20 %. Improve perception
of parking availability 501h and France.
Ground broken for redevelopment of
parking facility by 12/31/15.
• Grandview redevelopment plan
executed with final public space plan by
12/31/15.
• France Ave pedestrian plan
improvements completed by 12/31/14.
• . Redevelopment roadway improvements
substantially completed for Hazelton by
12/31/14.
lent
Goals
• Complete plans to expand North Ramp and
plans other improvements at other ramps by
12/31/14. Complete ramp projects by
12/31/15.
• Implement ramp demand management
system by 5/31/14.
• Complete small area plan for Wooddale and
Valley View by 12/31/14 and Cahill and 70th
Street by 12/31/15.
• Approve redevelopment plan for former
public works site by 7/1/14; complete
project by 12/31/15.
• Redevelopment agreement with the School
District for the current School District bus
barn site is approved by both the City and
the School by July 1, 2014
• Work with 501h and France property owners
on redevelopment projects.
• Outline development goals and incentives
related to sustainability, health and
transit /connectivity by 12/31/15.
• Master redevelopment plan for Pentagon
Park approved by 12/31/14.
t
Workforce
Description
Key Performance Indicators
Goals
High quality service delivery requires skilled
• Improve affordability of family insurance,
• Restructure employee benefit program by
employees who are properly deployed. The
to meet average for comparison cities by
9/1/2014.
City supports high performance staffing
end of 2016 -2017 budget cycle.
• Allocate $150,000 in operating budget
approaches and the recruitment and retention
• Continue 90% or better positive customer
each benefit year towards our benefit
of well - qualified employees. To support these
service evaluation scores on 2015 Quality
plans.
efforts, the organization will provide
of Life Survey and increase "excellent"
• Develop employee engagement survey
competitive compensation and benefits
ratings to 30 %.
and measure every two years starting in
packages.
• Employee satisfaction as measured
2014.
• Staffing and resource allocation
through the employee engagement survey
• Develop and implement customer service
• Recruitment & retention
standards and related training
• Compensation and benefits
organization -wide by 12/31/15.
• Incorporate defined values into hiring
process by 3/1/14 and performance
management system by 3/1/15.
• Develop standard onboarding and
leadership training by 12/31/15.
Communication and Engagement
Description
Key Performance Indicators
Goals
To clearly understand community needs,
• At least 85% of residents will continue to
• Host and promote Speak Up Edina topic
expectations and opinions, the City will
respond positively when asked if they felt
monthly.
consistently seek the input of a broad range of
they could have a say in local government
• Use "telephone town hall" meeting or live
stakeholders in meaningful and interactive
in the 2015 Quality of Life Survey.
social media chat at least once per year.
communication. Efforts to engage the
• Residents will continue to prefer a City
• Develop plan to promote City Extra by
community will utilize multiple platforms, be
communications tool as their primary
3/1/14 and implement by 6/1/14.
informative, transparent, responsive, and will
information source for City news in the
• Identify and train communication
involve volunteers and city commissions.
2015 Quality of Life survey.
coordinators in each department by
• Coordination
• The number of City Extra subscribers will
6/1/14.
• Multi=platform
increase by 25% from 8/1/13 to 12/31/15.
• Train key City staff on public engagement
• Strategic
• 90% of participants on boards,
methods by 12/1/14
• Transparent
commissions, advisory groups and task
• Prioritize needs for mobile apps and
• Two -way, interactive, inviting
forces rate their overall experience
implement at least one mobile reporting
• Accessible
positively.
app by 7/1/14.
• Comprehensive, informative
• Ten neighborhood associations will be
. Development and implement survey for
• Timely
recognized by 12/31/15.
volunteer participants and exit surveys for
• Registered users of City of Edina websites
board and commission members by
or fans /followers will increase by 20%
3/1/14.
from 8/1/13 to 12/31/15.
Community Vision
Description
Key Performance Indicators
Goals
A clear vision of a desired future will help
• A Vision Plan will be in place prior to next
0 Identify consulting partner by 3/1/14.
focus our daily efforts and sustain a high
Comprehensive Plan update.
• Complete visioning process by 12/1/14.
quality of life. A vision for the community
. Twelve hundred citizens involved in a
• Approve community vision by 3/1/15.
through the year 2040 that reflects the unique
community process to create a vision.
character, values and priorities of our citizens
and stakeholders will be developed. Broad
community participation will be central to our
effort critical to its ultimate success.
• Future
• Values
• 2040- or date certain in the future
• Priorities
Aviation Noise
Description
Key Performance Indicators
Goals
RNAV flight patterns over the community may
• Achieve an outcome generally
• Average daily overflights of the City do
have a negative effect on the quality of
acceptable to the City.
not exceed their 2012 levels.
community life. We are committed to
• Relationships with neighbors are not
• Average daily aviation noise levels in
influencing the outcome of RNAV decisions,
negatively impacted by efforts.
the City do exceed 2012 levels.
mitigating the impacts to the community, and
• New positive relationships with MAC,
• The hybrid RNAV solution endorsed by
working with our neighboring communities to
FAA and the airlines are established.
the MAC in Nov 2012 is implemented.
find the best possible solutions.
• A multi -track RNAV solution for MSP
• Mitigating impact
• Influencing outcome
runways 30R and 30L that does not
• Working with /partnering
cause the level of overflights or noise
levels to increase in excess of their
2012 levels is approved by MAC and
FAA.
REVENUES
PROPERTY TAXES
CABLE FRANCHISE TAXES
LICENSES & PERMITS
INTERGOVERNMENTAL REVENUE
CHARGES FOR SERVICE
FINES & FORFEITURES
OTHER REVENUES & TRANSFERS
TOTALREVENUES
EXPENDITURES
SALARIES /BENEFITS & STEP
CONTRACTUALSVCS.
COMMODITIES
CENTRAL SERVICES
CAPITAL OUTLAY
TOTAL EXPENDITURES
ACTUAL BUDGET BUDGET % BUDGET %
2012 2013 2014 INCREASE 2015 INCREASE
21,269,249
21,711,894
22,395,495
3.15%
23,321,495
4.13%
771,293
730,000
745,000
2.05%
760,000
2.01%
3,126,541
2,866,814
3,029,000
5.66%
3,090,000
2.01%
904,437
760,000
775,000
1.97%
791,000
2.06%
3,651,098
3,277,248
3,458,000
5.52%
3,525,000
1.94%
1,083,834
1,034,000
1,055,000
2.03%
1,076,000
1.99%
1,329,197
1,420,100
1,420,000
-0.01%
1,420,000
0.00%
32,135,649
31,800,056
32,877,495
3.39%
33,983,495
3.36%
21,148,496
22,427,600
23,354,000
4.13%
24,049,000
2.98%
3,881,866
4,346,367
4,429,995
1.92%
4,538,995
2.46%
1,688,779
1,682,529
1,633,500
-2.91%
1,667,500
2.08%
3,210,295
3,343,560
3,460,000
3.48%
3,528,000
1.97%
-
-
-
200,000
29,929,436
31,800,056
32,877,495
3.39%
33,983,495
3.36%
GABudget\2014 -2015 Budget \Meetings \08052013 Council worksession\Budget Model 2014 - updated 080213.xlsx 8/2/2013