HomeMy WebLinkAbout2021-09-09 City Council Work Session Meeting PacketAgenda
City Council Work Session
City of Edina, Minnesota
Community Room, City Hall
Call 800-374-0221, enter Conference ID 3480923 to listen to meeting
Tuesday, August 17, 2021
5:30 PM
I.Call To Order
II.Roll Call
III.2022-2023 City Manager Proposed Budget
IV.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: August 17, 2021 Agenda Item #: III.
To:Mayor and City Council Item Type:
From:Scott H, Neal, City Manager
Item Activity:
Subject:2022-2023 City Manager Proposed Budget
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
None.
INTRODUCTION:
Discuss the 2022-2023 City Manager Proposed Budget.
ATTACHMENTS:
Description
Draft Budget Work Plan
Staff Presentation
V3.0 Draft 3.0 Aug 13, 2021 Page 1 of 8
2022-2023 DRAFT Budget Work Plan
Pillar 1: Resilient City infrastructure, facilities,
technology, & equipment meets community
needs now and in the future.
STRONG FOUNDATION OBJECTIVES:
• Incorporate financial, societal and environmental costs into decision-making processes.
• Incorporate lifecycle and maintenance costs and climate adaptation design practices to allow
more informed decision making.
• Maintain and replace City facilities, assets and equipment in a manner that avoids deferred
maintenance, prevents emergency repair and replaces assets at the most cost-effective time.
• Manage the City’s facilities, operations, equipment and capital investments in a manner that
increases energy efficiency, reduces the City’s carbon footprint and GHG emissions and meets
sustainability goals.
Performance indicators and targets for success
Measures
The specifics strategies will will utilize or projects we will complete this budget-cyle.
2022-2023 Actions
How we make decisions and define success for each Pillar.
Pillar Objectives
The broad outcomes that we need to acheive for a successful budget.
Budget Pillars
V3.0 Draft 3.0 Aug 13, 2021 Page 2 of 8
2022-2023 DRAFT Budget Work Plan
• Design and build resilient infrastructure that reduces flooded structures, improves water quality
(drinking and surface) and increases filtered drinking water production.
2022-2023 Actions Department Lead
INFRASTRUCTURE (Streets, water, storm, sanitary sewer,)
1 As debt levies expire, increase the Capital Improvement Plan (CIP) Levy by
equivalent amount to establish reliable funding for ongoing building
maintenance, replacement, and capital improvements.
Finance
2 Capture the Southdale TIF tax capacity for funding street reconstruction Finance
3 Implement decision regarding street assessment financing and transition for
years 2022 - 2023
Engineering
4 Host local option sales tax referendum in 2022 general election. If
approved, implement the results.
Finance/Parks &
Rec/City Clerk
5 Approve a clean water strategy for surface waters. (Q32022) Engineering
6 Develop funding strategy to implement a street lighting system and
maintenance plan that balances sustainability, public safety, and quality
of life goals, including increasing energy efficiency, ensuring safely lit
community, and minimizing light pollution. (Q4 2022)
Engineering
7 Implement Morningside Flood Infrastructure Project (Q4 2023) Engineering
8 Implement Recommendations from 2020-2021 Utility Rate Study Finance
9 Design and construct Replacement Lift Station #6 Engineering
10 Implement Grandview District Transportation and Utility Improvements Engineering
11 Develop funding plan and implement iron and manganese removal
improvements to Water Treatment Plant 6. PW
BUILDINGS & FACILITIES
12 Consider recommendations from Parks & Recreation Commission for using
alternative funding methods for park improvements and determine next steps.
Finance
13 Reassess City Hall Space needs for post-pandemic service delivery. Facilities
14 Implement Green Building Policy into evaluation, design and
construction of City capital projects. Engineering
15 Develop roof replacement and rehabilitation plan for City facilities (Q4 2022)
Parking ramp, lots, shared maintenance – maintenance agreements ADA
Develop funding plan for maintenance of buildings (enterprise & general fund)
Engineering
16 Acquire Station 2 construction site. Determine finance method/plans. Select a
project architect. Approve construction plans to ensure the building satisfies
the needs of City staff to provide 24 hour fire and EMS operations. Include
office space for Community Health division within the Station 2 site.
Fire/Facilities
V3.0 Draft 3.0 Aug 13, 2021 Page 3 of 8
2022-2023 DRAFT Budget Work Plan
17 Determine finance method and plan for Fire Station 3 in the Northeast
Quadrant of the City. Propose and acquire site after Station 2 site is
determined, utilizing response models to provide efficient emergency response
to all residents.
Fire
TECHNOLOGY & EQUIPMENT
18 Complete SCADA upgrade that monitors and ensures delivery of safe
potable water and improve our ability to have a reliable storm and
sanitary sewer system. (Currently under contract will be complete in Q2 2022)
Public Works
19 Continue Implementation of City’s Green Fleet Policy. Engineering
20 Expand the City’s fiber optic network for faster and more secure connections IT
21 Expand use of GIS – Integrate additional City systems when appropriate. IT
22 Replace Public Safety Computer-aided Dispatch (CAD) and Record
Management System (RMS) Go live Q1 2023.
Police
STRONG FOUNDATION MEASURES
22-23 Targets:
• Reduce the City’s building energy GHG emissions by 5 percent annually through implementation
of energy management plans, City Sustainability Buildings Policy, ongoing facility maintenance,
capital improvements and operational behavior change.
• Implement Green Fleet Policy to increase fuel efficiency of City vehicle and equipment fleet 30
percent year-over-year.
Pillar 2: City services are delivered effectively
and efficiently and best balance community
needs.
The City delivers a variety of services, including police and fire response,
water and sewer, snow plowing and building inspections, that are
essential for the safety and wellbeing of those who live, work or visit
Edina. In addition, amenities and services including recreation facilities,
parks and programs contribute to the overall quality of life within the
community. To deliver reliable service, the City needs to recruit and
retain a strong workforce that has the resources and technology needed
to effectively and efficiently perform their work.
RELIABLE SERVICE OBJECTIVES
V3.0 Draft 3.0 Aug 13, 2021 Page 4 of 8
2022-2023 DRAFT Budget Work Plan
• Provide high-quality services in an efficient manner that demonstrates respect for the public
ensures appropriate response times.
• Provide a safe and secure working environment for employees.
• Promote an engaging and respectful work culture that values employee quality of life, physical
and mental-wellbeing and work/life balance.
• Provide competitive employee compensation and benefits to attract and retain a skilled and high-
performing workforce.
• Provide staffing, tools, equipment, resources, and training to meet expectations for service
delivery
• Utilize effective technology to easily maintain and locate data for the public, reduce risk and
provide better data for informed decision-making by elected officials and staff.
• Ensure that limited resources (money, equipment and time) are deployed in an equitable and
sustainable manner.
2022-2023 Strategy/Action: Department Lead
1 Complete Implementation of ERP inluding,Utility Billing and additional
Human Resource modules
Finance
2 Determine long-term plan for future of Art Center Building & delivery of
Art programs.
Parks & Recreation
3 Determine election process for Local Option Sales Tax (LOST ) implementation. Parks & Recreation/
Administration
4 Expand GIS applications and continue to increase integration of disparate City
data systems, (e.g., Financial, Human Resources and Geographic Information
Systems) for better decision-making and easier access.
Information
Technology
5 Evaluate remote work and services delivery – long-term impact post-COVID
ensure:
• resources for employee mental health and work/life balance
• Part-time / seasonal staffing model and compensation
Human Resources
6 Increase resources for Mental Health calls for service – resources, training,
coordination
Human
Resources/Police
7 Develop and implement plan to respond to challenges and public safety
recruitment
Fire, Police &
Administration
8 Continue to increase diversity of workforce. All Departments
9 Implement new agreement with Edina Public Schools regarding election
administration.
Administration
V3.0 Draft 3.0 Aug 13, 2021 Page 5 of 8
2022-2023 DRAFT Budget Work Plan
RELIABLE SERVICEDS MEASURES
22-23 Targets:
PILLAR 3: Plan for Connected & Sustainable
Development
Redevelopment and renewal of commercial and residential real estate is
essential to the vibrancy of the community. Redevelopment will play an
integral part of providing an inclusive, high quality of life that the Edina
community expects. It is important to ensure plans and policies are
relevant today and flexible for tomorrow. Incorporating sustainability
principles and standards during redevelopment with the goal of
reducing the community’s carbon footprint will be critical to human
health and safety. Creating sustainable redevelopment requires forward
thinking and preparing for the future.
ONGOING OBJECTIVES
• Determine, track and meet sustainability goals for metrics such as energy, transportation, water
and waste.
• Connect neighborhoods, businesses and open spaces.
• Support the continued high quality of life offered to residents and those who work in Edina.
• Promote affordable lifecycle housing.
• Demonstrate resiliency to changing climate and future community needs.
• Continue installation of sidewalks and shared-use paths (e.g., Twin Loops implementation).
2020-2021 Strategy/Action: Department Lead
1 Continue implementing strategies to create affordable housing
units using the affordable housing trust fund and other
applicable sources; explore acquiring another parcel for a multi-housing
development; continue developing single family and multi-family
preservation strategies;
Community
Development
2 Implement green building policy to incent sustainable building and
operational practices for new development and redevelopment.
(Connected with 1-2)
Engineering
V3.0 Draft 3.0 Aug 13, 2021 Page 6 of 8
2022-2023 DRAFT Budget Work Plan
3 Execute and implement redevelopment agreements for 5146 Eden Ave. Comm Dev
4 Implement Climate Action Plan and develop measures /outcomes for
success
Engineering
5 Explore a strategy to create district parking in the 44th and France Area
per the 44th and France Small Area Plan, including parameters that
balance current transportation needs and sustainability goals. (Q4 2021)
Study will be done – if possible, implement. ??? Keep a place holder.
Community
Development/
Finance
6 Prepare a District Plan for the Cahill Industrial Park Community
Development
7 Implement recommendations of the Housing Strategy Task Force final
report
Community
Development
9 Determine spending plan for available TIF funds by 2022 Community
Development/
Finance
10 Explore ways City had incent expansion of fiber optic to public. Community
Development
11 Expand the HRA levy to generate funds that can be leveraged for land
acquisition, bridge loans and renovations.
Community
Development/
Finance
PILLAR 4: Foster Inclusive and Engaged
Community
It is important that the City helps to foster a community that is
welcoming and inclusive to all who live, work and spend time in Edina.
The City wants to ensure that it works for all of the community. Efforts
to engage the community will utilize multiple platforms, be informative,
transparent, responsive and involve volunteers and City Commissions.
BETTER TOGETHER OBJECTIVES
• Ensure City policies and practices do not have disparate impacts based on race, color, national
origin, creed, religion, age, sex, sexual orientation, gender expression, familial status or disability.
• Conduct clear and meaningful community engagement where:
o The decision to be made and decision-making process is clearly defined.
o Individuals understand how and when they can participate.
o The City communicates what feedback is used and why.
V3.0 Draft 3.0 Aug 13, 2021 Page 7 of 8
2022-2023 DRAFT Budget Work Plan
o Inclusive engagement methods provide a variety of ways for the public to participate in
the decision-making process and ensure all voices are heard.
o Residents are satisfied with the process, even if they disagree with the outcome.
NEW 2020-2021 Strategy/Action: Department Lead
1 Continue implementation of the Racial Equity Implementation Plan and
incorporate new goals/work plans into ongoing dept work plans.
Administration
2 Create strategy, tools, and templates for better alignment and measurement
of Council Values (Community Engagement, Sustainability, Community
Health, and Race & Equity) into City decision-making and purchasing.
• Finalize strategy, tools and templates (Q4 2022)
• Implement strategy and train on tools and templates (Q3 2023)
Administration
3 Strengthen leadership and support for City-wide racial equity work,
including providing additional training, tools and resources to embed an
equity framework to City processes, services and decisions. This strategy
will build upon all employee and leadership training conducted in 2018-
2019.
2022- Focus on strengthen City Council race and equity development
through quarterly resources and activities
2022 Implement race and equity training for part-time and seasonal staff
that is embedded in on-boarding training.
Administration
4 Post-pandemic community engagement evaluation
• Public meetings
• Virtual or remote participation
• Online engagement
Administration
5 Implement Board and Commission diversity strategy. (2022-2024)
• Create a recruitment / outreach plan that is inclusive and inviting
• Establish intentional interview & appointment process
• Training & Retention
Administration
6 Administer 2023 Quality of Live Survey Communications
7 Strengthen relationships and build ones with residents and
underrepresented groups.
• Establish inventory of current relationships between the City,
residents, groups (2022)
• Create plan to make relationships foundational and establish trust
between the City and the community (2023)
Administration
8 Overall performance dashboards/how to communicate data and results (eg
QLS survey).
Information
Technology/
Administration
V3.0 Draft 3.0 Aug 13, 2021 Page 8 of 8
2022-2023 DRAFT Budget Work Plan
9 Complaint process & bias (RE Work Plan)
• Develop tracking process and policy (Q2 2022)
• Training (Q4 2022)
• Implementation and tracking (Q1 2023)
Administration
10 Improve Public Safety (Police & Fire, Community Engagement &
Demographics) (RE workplan)
• Evaluate current community outreach programs in public safety
departments.
• Create new opportunities for community engagement through
communication strategies and promotions.
• Create assessment for community engagement opportunities
Police, Fire &
Administration
11
Ensure successful implementation of ARPA Funding Administration
The CITY of
EDINA
2022-23 Budget and Preliminary Levy
August 17, 2021
The CITY of
EDINAAgenda
•Budget
•Process and Timeline
•2022-2023 Preliminary Budget and Levies
•Tax Comparisons
•Discussion
www.EdinaMN.gov 2
The CITY of
EDINA
www.EdinaMN.gov 3
Edina Consolidated
Budget $130M
Governmental Funds
$75M
General Fund $48M
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
EDINAEstimated Market Value (B)
9.1 8.9 9.0 9.8 10.4 10.9 11.6 12.4 12.9 13.3 13.8
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
www.EdinaMN.gov 4
The CITY of
EDINA
Budget Timeline
www.EdinaMN.gov 5
Date Topic Presenter(s)
March City Council Retreat Staff
June 1 Department Heads submit Budget Requests
July 7 ELT Reviews 2022-2023 Budget Draft ELT Discussion
July 21 2022-2023 Draft Budget Work Plan & Scenarios CC Work Session
Aug. 17 2022-2023 City Manager proposed budget CC Work Session
Sept. 9 CC consent to two-year HRA levy CC Meeting
Sept. 10 Preliminary HRA Levy Adoption HRA Meeting
Sept. 21 Preliminary CC Levy Adoption CC Meeting
Oct. 19 2022-2023 Budget Discussion/Update CC Work Session
Nov. 16 Open (Another 30 mins with CC?) CC Work Session
Dec. 7 TNT Budget Presentation CC Work Session
Dec. 7 TNT Budget Hearing (CC and HRA) CC/HRA Meeting
Dec. 21 Last Day to Adopt Budget CC/HRA Meeting
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 6
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
Two-Year Budget Work Plan
City-Wide Performance Measures
Approval: City Council
Accountable: City Manager
Annual Department Work Plans
City-Wide Performance Measures
Approval: City Manager
Accountable: Department Director
Individual Work Plans
Annual Performance Reviews
Approval: Manager
Accountable: Employee
Annual Commission Work Plans
Approval: City Council
Accountable: Commission
Budget Work
Plan
Other Work
Plans
2022-2023 Budget & Work Plan
GOALS
OBJECTIVES
STRATEGIES
Broad Outcomes
(Evergreen)
Measurable Results
(This Budget)
Specific Actions
(This Budget)
Goals
•Fire Stations 2 and 3
•Begin implementation of Street Financing
•Implement Morningside flood infrastructure
•Design & construct Lift Station #6
•Roof replacement plan for City facilities.
•Expand GIS capabilities
•Technology Security
2022-2023 Budget Work Plan
www.EdinaMN.gov 10
•Evaluate post-pandemic remote work and service
delivery.
•Re-assess City Hall Space Needs Study for post-
pandemic service delivery.
•Increase resources for mental health calls for
service.
•Art Center – long-term plan for building &
programs
•Implement new elections agreement with EPS
2022-2023 Budget Work Plan
www.EdinaMN.gov 11
•Implement Green Building Policy
•Implement Climate Action Plan
•Affordable Housing
•Blake Road Construction
•Consider PARC recommendation for alternate
funding.
2022-2023 Budget Work Plan
www.EdinaMN.gov 12
•Continue Racial Equity Implementation Plan
•Assess post-pandemic community engagement
strategies (evaluate what to keep, stop, expand)
•Implement Board & Commission diversity
strategy.
•Administer 2023 Quality of Life Survey
2022-2023 Budget Work Plan
www.EdinaMN.gov 13
The CITY of
EDINAProposed 2022-23 Budget
excluding Special Street Levy
www.EdinaMN.gov 14
Proposed Proposed
2021 2022 2023
General Fund 33,986,471$ 36,258,036$ 38,497,298$
6.14% 6.68% 6.18%
Arts/Culture 20,000$ -$ -$
0% -100% N/A
Debt Service 3,651,400$ 3,657,000$ 3,653,000$
-20.56% 0.15% -0.11%
Construction 4,130,000$ 4,240,000$ 4,350,000$
45.94% 2.66% 2.59%
HRA 230,400$ 237,300$ 244,400$
20.00% 2.99% 2.99%
Total Tax Levy 42,018,271$ 44,392,336$ 46,744,698$
% Increase 5.95% 5.65% 5.30%
The CITY of
EDINAProposed 2022-23 Budget
www.EdinaMN.gov 15
*Special street levy is 2.26% of the increase
July 21st Proposed July 21st Proposed
2021 2022 2022 2023 2023
General Fund $ 33,986,471 $ 37,130,486 $ 36,258,036 $ 39,038,281 $ 38,497,298
6.14% 9.25% 6.68% 5.14% 6.18%
Arts/Culture $ 20,000 $ - $ - $ - $ -
0% -100% -100% N/A N/A
Debt Service $ 3,651,400 $ 3,657,000 $ 3,657,000 $ 3,653,000 $ 3,653,000
-20.56% 0.15% 0.15% -0.11% -0.11%
Construction $ 4,130,000 $ 4,240,000 $ 4,240,000 $ 4,350,000 $ 4,350,000
45.94% 2.66% 2.66% 2.59% 2.59%
Special Street $ - $ 950,000 $ 950,000 $ 1,210,400 $ 1,210,400
0% N/A N/A 27.41% 27.41%
HRA $ 230,400 $ 237,300 $ 237,300 $ 244,400 $ 244,400
20.00% 2.99% 2.99% 2.99% 2.99%
Total Tax Levy $ 42,018,271 $ 46,214,786 $ 45,342,336 $ 48,496,081 $ 47,955,098
% Increase 5.95% 9.99% 7.91%* 4.94% 5.76%
The CITY of
EDINABudget Alignment
•Health insurance contractual increases received vs
prior estimates
Budgeted 3% increase for 2022 and 10% for 2023
•Reallocation of facility staff time from general fund to
enterprise funds
•Increased budget forecast for building permit revenue
•Budget stabilization fund utilized
www.EdinaMN.gov 16
The CITY of
EDINAPreliminary Tax Levy for 2022
www.EdinaMN.gov 17
Change Reason
2.75% Wage increases
0.66% Benefit increases
1.96% Service level changes, internal service fund charges, and all other changes
0.26% Equipment levy ($100,000)
0.02%HRA levy ($6,900)
5.65%Total 2022 levy without Special Street levy
2.26%Special Street levy ($950,000)
7.91%Total 2022 City + HRA levy increase
The CITY of
EDINAIncreased Capital Funding
www.EdinaMN.gov 18
•Planned increase to Capital Improvement Plan Levy
•5% annual increase to Equipment Levy
2019 2020 2021 2022 2023
Construction Fund Levies
Capital Improvement Plan Levy 300,000 800,000 2,000,000 2,000,000 2,000,000
Equipment Levy 1,930,000 2,030,000 2,130,000 2,240,000 2,350,000
The CITY of
EDINAGeneral Fund Wages and Benefits
www.EdinaMN.gov 19
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2015 2016 2017 2018 2019 2020 2021 2022Total Budgeted Wages and Benefits IncreaseMarket Adjustment Benefits Other Wages - New Positions & Other Job Changes
The CITY of
EDINABudgeted Market Adjustments
www.EdinaMN.gov 20
2015 2016 2017 2018 2019 2020 2021 2022
Market
Adjustments 2.5% 2.5% 2.5% 3.0% 3.0% 3.0% 3.0% 2.0%
The CITY of
EDINA2022 Estimated Levy Impacts
•In 2021 the median home pays about $135 per month in property
taxes to fund all City provided services.
•Total EMV is increasing by about 3.7% for taxes payable in 2022. The
median value single family home is now $571,800.
•With a 7.91% property tax levy increase, the effect on the 2022
median valued home would be about a:
•- 4.4% increase in City property taxes.
•- $71 increase per year, or $5.90 per month.
•- $141 payment per month in 2022 City property taxes.
www.EdinaMN.gov 21
The CITY of
EDINA
•$6.8 million added back to tax base
•Tax impact (incl SD II TIF) - $71
•Tax impact (w/o SD II TIF) – $152
www.EdinaMN.gov 22
Southdale 2 Tax Impact
The CITY of
EDINA2022 HRA Levy
•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 $2.5M in Edina.
•An HRA raises its own levy separate from the City.
•HRA levies must be used only for purposes listed in the HRA Act.
•A $237,300 HRA levy in Edina would be $9.00/year for a median
single-family home ($571,800)
www.EdinaMN.gov 23
The CITY of
EDINAProperty Tax History
www.EdinaMN.gov 24
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City tax $1,082 $1,102 $1,140 $1,195 $1,266 $1,319 $1,393 $1,474 $1,566 $1,623 $1,694
Total tax $5,410 $5,449 $5,606 $5,835 $6,276 $6,367 $6,715 $6,982 $7,251 $7,247
Median Value $403,10 $396,30 $399,70 $438,80 $457,30 $466,50 $501,00 $530,65 $548,50 $551,30 $571,80
$1,082
$1,694
$5,410
$7,247
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
"Median" Value Home
The CITY of
EDINANext Steps
•Based on Council Input, continue to refine 2022-2023 Budget
•City Manager proposed budget on Aug. 17
•Consent to HRA Tax Levy on Sept. 9
•Certify Preliminary Tax Levy on Sept. 21
•Budget Discussion/Update to Council at Work Session on Oct. 19
•Public Hearing for 2021 Budget on Dec. 7
•Final Date to Take Action on 2021 Budget is Dec. 21
www.EdinaMN.gov 25
The CITY of
EDINAQuestions/Discussion
www.EdinaMN.gov 26