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