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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 • 1� rO(e /N 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 M_ 1 �9�NA. �f� �0 o e f� \ Updated Budget Challenges /1�p rJ(� /yy 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 � f� roO�p7A. oil oe °�r 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 rBu 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 o e s oN City Manager Recommendations /Targets are already being implemented CdyofEdinacom �9Nw. y f4 N 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 �9�Nw.,kr'Y 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 4 \2 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% . _.... .. ._.. ...:._ .. _ .... �:_.. .. ._.. -_. C 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 7 s Tax Capacity & Valuation y� CdyolEdlna.com 8/5/2013 10 M 6q,N��f'L e F.1J�p, y� 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 �9�j1A. MJ� oeP�, Y()0 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