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HomeMy WebLinkAbout2020-12-01 City Council Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota VIRTUAL MEETING Call 800-374-0221, enter Conference ID 6089237 to listen to meeting Tuesday, December 1, 2020 5:30 PM I.Call To Order II.Roll Call III.Budget and CIP IV.COVID Financial Update 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 ampli%cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: December 1, 2020 Agenda Item #: III. To:Mayor and City Council Item Type: Reports / Recommendation From:Don Uram, Finance Director Item Activity: Subject:Budget and CIP Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: 2021 Budget and 2021-2026 CIP presentation and discussion. ATTACHMENTS: Description 2021 CIP and Budget Presentation The CITY of EDINA 2021 CIP, Budget and Final Levy December 1, 2020 The CITY of EDINAAgenda •Budget •Process and Timeline •2021-2026 Capital Improvement Plan •2021 Budget and Levies •Tax Comparisons •Questions www.EdinaMN.gov 2 The CITY of EDINA www.EdinaMN.gov 3 Edina Consolidated Budget $131M Governmental Funds $76M General Fund $49M Debt Service Fund $7M Construction Fund $11M Special Revenue Funds, including HRA $9M Enterprise Funds $49M Utility Fund $22M Liquor Fund $14M Park Enterprises $13M Internal Service Funds $6M Risk Management $1M Equip. Operations $2M IT $2M Facilities $1M The CITY of EDINABiennial Budget Process 2021 (Odd Year) Second year of 2020- 2021 Budget Approve 2022-2023 budget, including CIP levy 2020 (Even Year) First year of 2020- 2021 Budget Review/approve of 2021-2026 CIP www.EdinaMN.gov 4 Vision Edina (Twenty-year) Budget Work Plan Operating Budget (Two-year) Department Work Plans (Annual) Employee Work Plans (Annual) Commission Work Plans (Annual) Comprehensive Plan (Ten-year) Capital Improvement Plan (Five-year) Strategic Policy Implementation Level Work Plan Budget 2020-2021 Budget & Work Plan GOALS OBJECTIVES STRATEGIES Broad Outcomes (Evergreen) Measurable Results (This Budget) Specific Actions (This Budget) Goals The CITY of EDINATimeline www.EdinaMN.gov 7 Date Event Action Dec 3, 2019 Council Meeting Approve 2020/21 Budget and Workplan March 11 ELT Staff Meeting CIP staff kickoff CIP Prep Department prepare forms June 5 Finance Deadline Forms & Prioritization due to Finance CIP Prioritization Committee Review July ELT Staff Meeting DRAFT CIP reviewed by ELT August 18 Work Session DRAFT CIP presented to Council Sept 10/15 HRA/Council Meeting HRA/Council adopts preliminary levies October Work Session Staff presents CIP and Budget to Council December 1 Council Meeting Public hearings & adopt final budget & CIP The CITY of EDINACIP Prioritization Process www.EdinaMN.gov 8 Division leaders submit CIP project narratives Department Heads score CIP projects Prioritization committee reviews submissions and recommends projects for funding ELT reviews and comments on recommendations City Manager recommends draft CIP to Council Council Oversight The CITY of EDINADebt Service Levy www.EdinaMN.gov 9 $- $1 $2 $3 $4 $5 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036Millions City Hall Public Works (2013A)Fire Station Public Works (2017C)Public Works HRA Sports Dome Gymnasiums The CITY of EDINAProjected CIP Levy www.EdinaMN.gov 10 Budget Budget Projection Projection Projection Projection Projection 2020 2021 2022 2023 2024 2025 2026 Debt Service Fund Levies City Hall Debt Service 952,000 - - - - - - Gymnasium Debt Service 391,000 392,000 392,000 392,000 392,000 398,000 - Fire Station Debt Service 402,000 402,000 403,000 403,000 403,000 406,000 403,000 Public Works Facility Debt Service 1,688,000 1,695,000 1,694,000 1,692,000 1,680,000 1,675,000 1,682,000 Sports Dome 1,163,300 1,162,400 1,168,400 1,166,200 1,168,700 1,165,100 1,166,100 Debt Service Fund Subtotal 4,596,300 3,651,400 3,657,400 3,653,200 3,643,700 3,644,100 3,251,100 Increase From Prior Year (%)-0.34% -20.56% 0.16% -0.11% -0.26% 0.01% -10.78% Construction Fund Levies Capital Improvement Plan Levy 800,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,400,000 Equipment Levy 2,030,000 2,130,000 2,240,000 2,350,000 2,470,000 2,590,000 2,720,000 Construction Fund Subtotal 2,830,000 4,130,000 4,240,000 4,350,000 4,470,000 4,590,000 5,120,000 Increase From Prior Year (%)26.91% 45.94% 2.66% 2.59% 2.76% 2.68% 11.55% The CITY of EDINA Fully allocated already: •Equipment Levy •MSA •Special Assessments •TIF •Franchise Fees •Utility Revenues Funding for 2021-2026 www.EdinaMN.gov 11 Available to prioritize: •Utility transfers ($100k/year) •CIP Levy ($2M) •Liquor transfer Potentially Available: •Park Dedication Fees •Grants & Donations •Future GF surplus •P&R Enterprise Cash/Fund Balances •Liquor Fund Balance The CITY of EDINAPrioritization of Projects •Simplified priority rating to High (1), Medium (2), and Low (3) •High = Critical •Medium = Important as funding available •Low = Project can wait •Additionally, committee focused on the following pillars, top to bottom: Public and Staff Safety/Code Requirements (High) Immediate Asset/Infrastructure Preservation (High/Medium) Expansion of Services Contingency www.EdinaMN.gov 12 The CITY of EDINACIP Committee Recommendations •Recommended projects for about $1.5M each year for the next three years. This covers all unfunded projects with a high priority. •Establish Asset Preservation funding of about $500k for the next three years+ to cover immediate facility needs. •Committee to meet every six months to prioritize use of Asset Preservation pool. www.EdinaMN.gov 13 The CITY of EDINA2021-2026 CIP by Category www.EdinaMN.gov 14 •Department Heads submitted 265 projects for consideration. This is the approximately same number of projects that are in the 2019-2023 CIP. •The total dollar value of requests increased from $189M to $271M. Sixth year added $40M. Largest increase is in Buildings and Infrastructure. •Without additional funding, many projects continue to be deferred. Buildings 32% Equipment & Vehicles 7% Infrastructure 47% Land 2% Parks 11% Technology 1% The CITY of EDINA2021-2026 CIP by Funding Source www.EdinaMN.gov 15 Construction Fund-CIP Levy 3.7% Construction Fund-Equipment Levy 5.0% Construction Fund-Other 14.2% HRA Fund 3.8% Utility Fund Total 28.6%CAS Fund 1.9% PACS Fund 2.6% Enterprises 1.1% Other 0.2% Funding TBD 38.7% The CITY of EDINA2021-2022 CIP by Category www.EdinaMN.gov 16 Buildings 37% Asset Preservation 25% Parks 17% Equipment & Vehicles 12% Technology 5% Land 4% The CITY of EDINA2021-2026 CIP Challenges •Remaining $105M in CIP projects over the next 6 years with Funding -TBD. •About $72M is categorized as “Buildings” and $29M as “Parks” (includes $26M for Braemar Park and Fred Richards). •There is currently about $2M/year to allocate to CIP projects. •Funding source for Parks infrastructure, certain enterprise assets, and new projects. •Funding gap in Equipment Levy needs. www.EdinaMN.gov 17 The CITY of EDINA2021 Tax Levy www.EdinaMN.gov 18 Actual Proposed 2019 2020 2021 General Fund 30,009,121$ 32,021,243$ 33,986,471$ 5.32% 6.71% 6.14% Arts/Culture 20,000 20,000 20,000 0.00% 0.00% 0.00% Debt Service 4,611,900 4,596,300 3,651,400 0.70% -0.34% -20.56% Construction 2,630,000 2,830,000 4,130,000 2.45% 7.60% 45.94% HRA 160,000 192,000 230,400 28.00% 20.00% 20.00% Total Tax Levy 37,431,021$ 39,659,543$ 42,018,271$ % Increase 4.60% 5.95% 5.95% The CITY of EDINA2021 Tax Levy www.EdinaMN.gov 19 Change Reason 3.2% Wages & benefits cost increases 1.8% Internal service fund charges, service level changes & all other changes 0.65% Decreased Debt Service levy offset by increase in CIP levy ($255,100) 0.2% Increased Equipment levy ($100,000) 0.1%Increased HRA levy ($38,400) 5.95%Total 2021 City + HRA levy increase The CITY of EDINA2021 Estimated Levy Impacts •In 2020 the median valued home (MVH) pays about $131 per month in property taxes to fund all City provided services. •Total EMV is increasing by about 3.7% for taxes payable in 2021. The MVH is now $551,300. •With a 5.95% property tax levy increase, the effect on the 2021 MVH would be about a: •- 3.7% increase in City property taxes. •- $57 increase per year, or about $4.75 per month. •- $136 payment per month in 2021 City property taxes. www.EdinaMN.gov 20 The CITY of EDINA2021 HRA Levy •State law allows an HRA levy up to 0.0185% the previous year’s taxable market value of all property. This limit would produce tax revenue of about $2.3M. •An HRA levy is separate from the City. •HRA levies must be used only for purposes listed in the HRA Act. •A $230,400 HRA levy would be $9.00/year for the MVH($551,300). www.EdinaMN.gov 21 The CITY of EDINA2020 Property Tax Distribution www.EdinaMN.gov 22 Hennepin County, 31% City of Edina, 21% Edina School District, 40% Watershed, Metro Districts, & Other, 8% Hennepin County 16% City of Edina 11% Edina School District 18%State of MN 23% Watershed, Metro Districts, & Other 4% Fiscal Disparities 28% Residential - $548,500 Commercial - $2.04M The CITY of EDINAEstimated Market Value (B) 9.4 9.1 8.9 9.0 9.8 10.4 10.9 11.6 12.4 12.9 13.3 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 www.EdinaMN.gov 23 The CITY of EDINAProperty Tax History www.EdinaMN.gov 24 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 City tax $1,042 $1,082 $1,102 $1,140 $1,195 $1,266 $1,319 $1,393 $1,474 $1,566 $1,623 Total tax $5,066 $5,410 $5,449 $5,606 $5,835 $6,276 $6,367 $6,715 $6,982 $7,205 Median Value $411,50 $403,10 $396,30 $399,70 $438,80 $457,30 $466,50 $501,00 $530,65 $548,50 $551,30 $1,042 $1,623 $5,066 $7,205 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 "Median" Value Home The CITY of EDINAProperty Tax History www.EdinaMN.gov 25 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 City Tax $1,013 $1,073 $1,113 $1,141 $1,086 $1,104 $1,127 $1,110 $1,096 $1,120 $1,154 Total Tax $4,925 $5,365 $5,504 $5,610 $5,305 $5,475 $5,462 $5,362 $5,228 $5,238 $1,013 $1,154 $4,925 $5,238 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $400,000 Home The CITY of EDINAMedian Home – CPI Adjusted www.EdinaMN.gov 26 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total City (2003 dollars)$859 $854 $867 $869 $884 $927 $972 $991 $1,021 $1,062 $1,115 Total Tax (2003 dollars)$4,147 $4,153 $4,333 $4,298 $4,347 $4,527 $4,872 $4,782 $4,922 $5,030 $5,128 Median Value $432,700 $411,500 $403,100 $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $859 $1,115 $4,147 $5,128 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 The CITY of EDINANext Steps •Public Hearing for 2021 Budget/Levy on Dec. 1 •Certify Final Tax Levy on Dec. 1 •Final Date to Take Action on 2021 Budget/Levy is Dec. 15 www.EdinaMN.gov 27 The CITY of EDINAQuestions/Discussion www.EdinaMN.gov 28 Date: December 1, 2020 Agenda Item #: IV. To:Mayor and City Council Item Type: Reports / Recommendation From:Don Uram, Finance Director Item Activity: Subject:COVID Financial Update Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: COVID Financial Update. Staff will present information regarding CARES Act funding and related expenses the City has incurred due to COVID. Staff will also present an update on the Enterprise funds and the expecting financial impacts due to COVID. ATTACHMENTS: Description Staff Presentation The CITY of EDINA COVID Financial Impact December 1, 2020 The CITY of EDINAAgenda •General Fund Overall Elections Fire/Public Health Park & Rec •Enterprise Funds www.EdinaMN.gov 2 The CITY of EDINAGrants Received Department Uses Amount General Fund Per Guidance $3,958,001 Elections PPE, etc. $25,822 Fire Ambulance Aid (revenue) $48,401 Fire PPE $5,250 Park and Rec “Save the Summer” Programs $48,340 Public Health General $78,538 Total $4,164,352 www.EdinaMN.gov 3 The CITY of EDINACARES Act Spending www.EdinaMN.gov 4 Budgeted Personnel 23% Payroll Public Health 40% Medical Expenses 7% Other 1% Public Health 2% PPE 3% Telework 1% Housing Support 5% Unemployment Benefits 2% Small Business Assistance 13% Economic Support 3% The CITY of EDINAP&R Enterprises •New restrictions No indoor recreational activities Through 12/18/20 •Impact as of Q3 report (before new restrictions) - $1.7M additional loss vs 2019 •Updated impact - $2.5M additional loss or $4.2M total operating loss Primary drivers – Golf Dome & Braemar Arena Assumptions - Closed through end of year www.EdinaMN.gov 5 The CITY of EDINAProjections w/ Changing Restrictions www.EdinaMN.gov 6 2019 YE 2020 Budget June est Aug est Nov est Braemar Field (298,130) (456,746) (540,112) (407,579) (555,053) Arena (351,537) (550,738) (1,426,584) (1,183,004) (1,633,814) Art Center (268,809) (317,237) (435,864) (272,382) (290,694) Aquatic Center 30,530 (83,813) (396,361) (363,912) (374,628) EP (181,820) (328,107) (725,314) (805,899) (802,382) CLP (302,743) (419,827) (593,416) (488,569) (497,765) Golf Dome (38,493) 5,529 159,746 120,017 (24,984) Golf (279,472) 384,502 (423,101) (54,099) (49,615) -$5,000 -$4,000 -$3,000 -$2,000 -$1,000 $0 $1,000 Operating Inc/(Loss) in 000's The CITY of EDINALiquor •Q2 shutdown & restrictions resulted in $1.2M lower revenue for 2020 vs 2019 •September started outpacing PY Sales up 11% & 9% in Sept & Oct, respectively November preliminary up 6% Ecom has averaged $3,800/day for Sept-Nov 2020 vs $500 in 2019 •End of year projections www.EdinaMN.gov 7 (in M's)2018 2019 2020 Budget Q3 Forecast 7% YOY Sales 13.4$ 13.1$ 13.9$ 11.8$ 12.2$ Expenses 12.0$ 12.0$ 12.5$ 11.1$ 11.4$ Operating Income 1.4$ 1.1$ 1.3$ 0.7$ 0.850$ The CITY of EDINAImpact •Goals Maintain positive cash balance per fund for year end Cover losses through Liquor transfer and fund/cash balances Protect Edina Law •Adjust Liquor transfer www.EdinaMN.gov 8 Budget Tentative Golf - 100,000 Centennial Lakes 100,000 - Edinborough Park - - Aquatic Center - - Art Center 225,000 175,000 Braemar Arena 300,000 500,000 Braemar Field - General Fund 50,000 - Construction Fund 175,000 75,000 Liquor Transfer (850,000) (850,000) The CITY of EDINAQuestions/Discussion www.EdinaMN.gov 9