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Home My WebLink About2021-12-07 City Council Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota Community Room, City Hall Tuesday, December 7, 2021 5:30 PM I.Call To Order II.Roll Call III.2022-2023 Proposed Budget and Work Plan 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: December 7, 2021 Agenda Item #: III. To:Mayor and City Council Item Type: Other From:Scott H. Neal, City Manager Item Activity: Subject:2022-2023 Proposed Budget and Work Plan Information CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: Review proposed 2022-2023 Budget and Work P lan. ATTACHMENTS: Description 2022-2023 Budget Work Plan 2022-2023 Budget and Tax Levy Reports Staff Presentation 2022—2023 Proposed Budget Work Plan Pillars & Values December 7, 2021 BUDGET PILLARS & VALUES Page | 1 DEFINITIONS BUDGET PILLARS Pillar 1: City infrastructure, facilities, technology, and equipment meets community needs now and in the future. Infrastructure serves as the foundation for providing core city services such as transportation, clean drinking water, sanitary sewer services, and flood protection. City facilities house the people and equipment that provide public services, and the shared right of way, public places and parks are where people come together. Technology and equipment support our ability to provide reliable service day to day or in emergencies. STRONG FOUNDATION OBJECTIVES: • Capital assets and infrastructure systems are managed to minimize risk and sustain service levels to be safe and reliable. • Infrastructure design reduces risk of flooded structures, improves water quality (drinking and surface), and increases filtered drinking water production. • Facilities, infrastructure assets, and equipment are maintained and replaced at the most cost- effective time to prevent emergency repair and avoid service disruptions. • Integrated project scope and decision-making processes partner with customers, stakeholders, and related City services to deliver best value projects that stand the test of time. • Implement effective technology systems to easily maintain and locate data for the public and provide better data for informed decision-making by elected officials and staff. • Create and manage secure and reliable technology systems that are protected against deliberate misuse and work when they are needed most, at times of emergency or natural hazard. Budget Pillars: The broad outcomes to be achieved by every budget. Budget Values: The beliefs that guide decision- making. Budget Strategies: The specific actions, projects, and targets to strengthen the pillars in this two-year budget. Budget Pillars Budget Values Budget Strategies 2022—2023 Proposed Budget Work Plan Pillars & Values December 7, 2021 BUDGET PILLARS & VALUES Page | 2 Pillar 2: City services enhance the safety, wellbeing, and quality of life experienced in Edina. City services including police, fire, inspections, water/sewer, and streets are critical to the safety of the community. Parks, recreational facilities, and other City programs enhance the overall quality of life for those who live, work, and visit Edina. The City recognizes that a skilled and engaged workforce is critical for the delivery of high-quality services. The City needs to recruit and retain a strong workforce with the necessary skills, tools, and resources to accomplish the work. RELIABLE SERVICE OBJECTIVES • City facilities and property provide a safe and secure environment for employees and visitors. • Appropriate and equitable response times effectively prioritize health and safety. • Staffing, tools, equipment, resources, and training are aligned to meet expectations for service delivery. • An engaging and respectful work culture values employee quality of life, physical and mental- wellbeing, and work/life balance. • Competitive employee compensation, benefits, and practices attract and retain a skilled and high- performing workforce PILLAR 3: City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. Ensuring a vibrant city requires forward thinking and preparation. Affordable, walkable neighborhoods that foster mobility and interconnectedness improve the quality of life for current and future residents. Reducing the community’s greenhouse gas emissions and responding to climate change through adaptive management of natural assets such as trees, greenspace, and water is critical to the health of future generations. LIVABLE CITY OBJECTIVES • Neighborhoods, businesses, and open spaces are connected with multi-modal transportation options. • Installation of sidewalks and shared-use paths continues to connect neighborhoods per long-term strategies (e.g., Twin Loops implementation). • There are a variety of housing options available for different incomes and life stages. • Edina’s Climate Action Plan is implemented to meet climate mitigation and adaptation metrics. 2022—2023 Proposed Budget Work Plan Pillars & Values December 7, 2021 BUDGET PILLARS & VALUES Page | 3 • Edina community members can easily access broad-band from home, work, or transit-connected public places. • Residents and workers can easily access City resources to ensure clean, safe housing and workplaces. • Residents can safely and enjoyably access a park or open green space within a short walk from home. PILLAR 4: City government fosters an inclusive, informed and engaged community. The City wants to ensure that it works for all of the community. An inclusive and engaged community is one where everyone feels welcome, has equitable access to government, and has a voice in decisions that affect them. City government works best when residents are informed and have meaningful opportunities for engagement that include a variety of diverse perspectives. The City will continue to learn and adapt to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions. BETTER TOGETHER OBJECTIVES • City Council, City Staff, and members of the community treat each other with professionalism and respect. • Residents can easily find and access information that affects them. • Inclusive engagement methods provide a variety of ways for the public to participate in the decision-making process and ensure all voices are heard and, 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. o Residents are satisfied with the process, even if they disagree with the outcome. • City government representatives, volunteers, and staff reflect the diversity of the people it serves. • There is ongoing evaluation of City policies and practices to ensure they are equitable regardless of an individual’s race, color, national origin, creed, religion, age, sex, sexual orientation, gender expression, economic status, or other protected classes. 2022—2023 Proposed Budget Work Plan Pillars & Values December 7, 2021 BUDGET PILLARS & VALUES Page | 4 BUDGET VALUES Stewardship We make wise investments that focus on the best long-term value for residents. • Decisions consider the impact to future generations and balance the service, cost, and risk for the life of the investment. • Operations, projects, and services are managed in an efficient manner. • We use data to proactively maintain and replace assets. • We take advantage of opportunities to increase long-term value. • We integrate project scope and decision-making processes with related city services, and partner with stakeholders to deliver best value projects that stand the test of time. Equity We provide equitable opportunities for people to participate in their City government and access City institutions, facilities, and services. • Residents have equitable access to City services and programs. • City ordinances, policies, and procedures are equitably enforced. • City decisions consider the impact to historically underrepresented groups. • City government representatives, volunteers, and staff reflect the diversity of the people it serves. • Residents have multiple options to have their voices heard, and barriers to participation are minimized. • The City will continue to learn and adapt to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions. Health We use a Health-in-All Policies approach (HiAP) to promote and protect the physical, mental, and social wellbeing of all people who live, work, or visit Edina. • We recognize that an individual's health and wellbeing is more than just physical health, and is impacted by social, economic, and environmental factors. • We recognize that health is affected by all City activity, from daily operations to policy development and implementation. • We utilize a Health-in-All-Policies lens to evaluate and consider health impacts of City decisions and policies. • We recognize existing disparities in health outcomes between populations and work to address those disparities. 2022—2023 Proposed Budget Work Plan Pillars & Values December 7, 2021 BUDGET PILLARS & VALUES Page | 5 Sustainability We ensure that our policies, decisions, and plans have a positive impact on people and the planet now and for future generations. • City infrastructure, facilities and equipment systems are designed and maintained to reduce the City’s greenhouse gas emissions and meet sustainability goals. • Sustainable design is visibly and materially included in development and redevelopment strategies. • We evaluate the impact of future climate and extreme weather on infrastructure systems and create or modify infrastructure to reduce risk or improve resilience. • Edina demonstrates resiliency to a changing climate and future community needs. 2022—2023 Proposed Budget Work Plan Strategies December 7, 2021 BUDGET STRATEGIES Page | 1 2022—2023 BUDGET STRATEGIES 1A 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. Ongoing Finance Update: 01/03/21—Finance will write update here. 1B Host local option sales tax referendum in 2022 general election. If approved, implement the results. Q4 2022 Finance Update: 01/03/21—Finance will write update here. 1C Approve a clean water strategy for surface waters. Q3 2022 Engineering Update: 01/03/21—Engineering will write update here. 1D 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 Update: 01/03/21—Engineering will write update here. 1E Implement Morningside Flood Infrastructure Project. Q4 2023 Engineering Update: 01/03/21—Engineering will write update here. 1F Consider recommendations from Parks & Recreation Commission for using alternative funding methods for park improvements and determine next steps. Q3 2022 Finance Update: 01/03/21—Finance will write update here. 1G Reassess City Hall space needs for post-pandemic service delivery. Q4 2022 Facilities Update: 01/03/21—Facilities will write update here. 1H Acquire Fire Station #2 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. Q2 2022 Fire/Facilities Update: 01/03/21—Fire/Facilities will write update here. 2022—2023 Proposed Budget Work Plan Strategies December 7, 2021 BUDGET STRATEGIES Page | 2 1I 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. Q4 2023 Fire Update: 01/03/21—Fire will write update here. 1J Expand the City’s fiber optic network for faster and more secure connections. Q3 2023 IT Update: 01/03/21—IT will write update here. 1K Replace Public Safety Computer-aided Dispatch (CAD) and Record Management System (RMS). Go live Q1 2023. Q1 2023 Police Update: 01/03/21—Police will write update here. 2A Determine long-term plan for future of Art Center building and delivery of art programs. Q1 2022 Parks & Rec Update: 01/03/21—Parks & Recreation will write update here. 2B Increase resources, training, and coordination for responding to mental health-related calls for service. Q4 2022 Police/Fire/ Admin Update: 01/03/21—Police/Fire/Admin will write update here. 2C Implement new agreement with Edina Public Schools regarding election administration for 2022 and beyond. Q1 2022 Admin Update: 01/03/21—Administration will write update here. 2D Evaluate remote work and services delivery—long-term impact post- COVID to ensure: • Resources for employee mental health and work/life balance • Part-time / seasonal staffing model and compensation Ongoing HR Update: 01/03/21—Human Resources will write update here. 3A 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. (Q2) Q2 2022 Community Dev Update: 01/03/21—Community Development will write update here. 3B Implement sustainable building policy to incent sustainable building and operational practices for new development and redevelopment. Q4 2023 Engineering Update: 01/03/21—Engineering will write update here. 2022—2023 Proposed Budget Work Plan Strategies December 7, 2021 BUDGET STRATEGIES Page | 3 3C Execute and implement redevelopment agreements for 5146 Eden Ave. Q2 2022 Community Dev Update: 01/03/21—Community Development will write update here. 3D Evaluate the feasibility of creating 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. Q2 2022 Community Dev Update: 01/03/21—Community Development will write update here. 3E Prepare a District Plan for the Cahill Industrial Park. Q1 2023 Community Dev Update: 01/03/21—Community Development will write update here. 3F Implement recommendations of the Housing Strategy Task Force final report. Ongoing Community Dev Update: 01/03/21—Community Development will write update here. 3G Determine spending plan for available TIF funds by 2022. Q2 2022 Community Dev Update: 01/03/21—Community Development will write update here. 3H Explore ways City can incent expansion of broadband high-speed internet to public. Q3 2022 Community Dev Update: 01/03/21—Community Development will write update here. 3I Implement strategies to increase organics participation to 50% (currently 32%) and tonnage to 200 per month (currently 100) by 2023. Q3 2022 Fire-Health Update: 01/03/21—Health will write update here. 3J Implement strategies to create affordable/workforce housing (between 992 and 1,804 units by 2030). Ongoing Community Dev Update: 01/03/21—Community Development will write update here. 4A Complete final report of the 2018 Racial Equity Implementation Plan and incorporate race & equity goals into ongoing department work plans. (Operationalize equity plans.) Q1 2022 Admin Update: 01/03/21—Administration will write update here. 4B 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 provide quarterly resources and activities for City Council. 2022—2023 Proposed Budget Work Plan Strategies December 7, 2021 BUDGET STRATEGIES Page | 4 Q4 2023 Admin Update: 01/03/21—Administration will write update here. 4C Continue implementation of recruitment and selection strategy for Boards & Commissions to better reflect diversity reflective of demographics in Edina. Q4 2023 Admin Update: 01/03/21—Administration will write update here. 4D Administer 2023 Quality of Live Survey. Q3 2023 Comm Update: 01/03/21—Communications will write update here. 4E Evaluate and implement transparency tools and dashboards for City budget and overall performance. Q3 2023 Admin Update: 01/03/21—Administration/Finance will write update here. 4F Use an equity lens to evaluate City complaint response process and procedures. Q1 2023 Admin Update: 01/03/21—Administration will write update here. 4G Ensure successful implementation of ARPA Funding. Q4 2022 Admin Update: 01/03/21—Administration will write update here. 4H Review Race & Equity Task Force recommendations to incorporate into Priority Use agreements with athletics associations. Q1 2023 Parks & Rec Update: 01/03/21—Parks & Recreation will write update here. CITY OF EDINA Proposed Tax Levies Budget Budget 2019 2020 2021 2022 2023 General Fund Levies General Operating Levy 30,009,121$ 32,021,243$ 33,986,471$ 36,708,036$ 38,947,298$ General Fund Subtotal 30,009,121 32,021,243 33,986,471 36,708,036 38,947,298 Increase From Prior Year (%)5.32%6.71%6.14%8.01%6.10% Arts and Culture Fund Levies Arts and Culture 20,000 20,000 20,000 - - Arts and Culture Fund Subtotal 20,000 20,000 20,000 - - Increase From Prior Year (%)0.00%0.00%0.00%-100.00%0.00% Debt Service Fund Levies City Hall Debt Service 952,000 952,000 - - - Gymnasium Debt Service 390,000 391,000 392,000 392,000 392,000 Fire Station Debt Service 406,000 402,000 402,000 403,000 403,000 Public Works Facility Debt Service 1,695,000 1,688,000 1,695,000 1,269,000 1,269,000 Sports Dome 1,168,900 1,163,300 1,162,400 1,168,000 1,166,000 Debt Service Fund Subtotal 4,611,900 4,596,300 3,651,400 3,232,000 3,230,000 Increase From Prior Year (%)0.70%-0.34%-20.56%-11.49%-0.06% 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 Street Reconstruction Levy - - - 950,000 1,210,400 Weber Woods NOTE 1 400,000 - - - - Construction Fund Subtotal 2,630,000 2,830,000 4,130,000 5,190,000 5,560,400 Increase From Prior Year (%)2.45%7.60%45.94%25.67%7.14% HRA Fund Levies HRA Operating Levy 160,000 192,000 230,400 237,300 244,400 HRA Fund Subtotal 160,000 192,000 230,400 237,300 244,400 Increase From Prior Year (%)28.00%20.00%20.00%2.99%2.99% Total Property Tax Levy 37,431,021$ 39,659,543$ 42,018,271$ 45,367,336$ 47,982,098$ Increase From Prior Year (%)4.60%5.95%5.95%7.97%5.76% NOTE 1:Repayment of Construction Fund reserves used to purchase a portion of Weber Woods from the City of Minneapolis In 2016. G:\Budget and CIP\2022 Budget\Budget Book\Financials\2022 Summary charts 11.05.21.xlsx 12/3/2021 CITY OF EDINA Consolidated Proposed Budget 2020 2021 2022 2023 Actual Budget Budget Budget REVENUES AND OTHER FINANCING SOURCES Property tax levy 39,509,239$ 42,018,271$ 45,367,336$ 7.97%47,982,098$ 5.76% Tax increments 6,452,819 7,969,700 1,670,245 -79.04%1,723,245 3.17% Franchise fees & other taxes 3,079,705 3,182,000 3,120,000 -1.95%3,120,000 0.00% Special assessments 4,629,551 4,281,222 4,624,553 8.02%3,726,253 -19.42% Licenses and permits 6,454,749 5,258,514 5,464,560 3.92%5,540,160 1.38% Intergovernmental 11,758,668 2,888,218 6,120,309 111.91%4,700,100 -23.20% Charges for services 4,968,288 5,636,930 5,932,905 5.25%6,140,291 3.50% Fines and forfeitures 485,472 950,000 650,000 -31.58%650,000 0.00% Operating revenue 45,508,128 52,586,578 54,251,591 3.17%56,338,941 3.85% Investment income 2,781,450 1,039,925 1,036,000 -0.38%1,036,000 0.00% Other revenue 3,731,363 726,761 687,622 -5.39%687,622 0.00% Debt issued 2,025,176 3,144,387 1,768,370 -43.76%2,813,402 59.10% Other financing sources 151,595 28,135 250,000 788.57%- -100.00% TOTAL REVENUES AND OTHER FINANCING SOURCES 131,536,203 129,710,641 130,943,491 0.95%134,458,112 2.68% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,350,260 2,379,841 3,092,833 29.96%3,150,731 1.87% Communications 1,255,366 1,495,409 1,829,674 22.35%1,706,364 -6.74% Information technology 104,253 - 50,000 NA 30,000 -40.00% Human resources 1,118,151 1,317,285 1,462,010 10.99%1,523,510 4.21% Finance 2,083,434 1,575,228 1,706,939 8.36%1,752,356 2.66% Public works 27,584,362 27,703,662 26,146,304 -5.62%27,050,196 3.46% Engineering 8,322,433 9,655,062 15,833,458 63.99%16,954,149 7.08% Police 15,295,562 17,743,443 16,624,982 -6.30%17,531,371 5.45% Fire 14,182,094 10,752,843 12,647,083 17.62%13,218,827 4.52% Parks & recreation 27,990,679 32,255,486 36,145,596 12.06%36,734,112 1.63% Community development 5,295,770 8,427,743 7,014,431 -16.77%4,709,140 -32.86% Debt service 7,872,730 7,287,877 6,004,168 -17.61%6,485,977 8.02% TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 113,455,094 120,593,879 128,557,478 6.60%130,846,733 1.78% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of goods sold 8,946,340 10,218,869 11,027,161 7.91%11,414,891 3.52% Personal services 41,718,816 45,333,488 48,417,757 6.80%50,422,723 4.14% Contractual services 21,433,776 22,130,672 28,186,990 27.37%26,298,850 -6.70% Commodities 4,180,993 4,696,946 4,898,369 4.29%4,933,495 0.72% Internal services 6,872,260 7,436,487 7,975,948 7.25%8,190,952 2.70% Equipment 3,624,078 2,495,960 1,728,550 -30.75%1,936,665 12.04% Capital outlay 9,421,171 11,426,741 10,856,385 -4.99%11,452,603 5.49% Depreciation 8,339,446 8,466,500 8,790,000 3.82%8,985,000 2.22% Debt service 8,918,214 8,388,216 6,676,318 -20.41%7,211,554 8.02% TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 113,455,094 120,593,879 128,557,478 6.60%130,846,733 1.78% CHANGE IN FUND BALANCE OR NET POSITION 18,081,109 9,116,762 2,386,013 3,611,379 FUND BALANCE OR NET POSITION - JANUARY 1 183,410,422 201,491,531 210,608,293 212,994,306 FUND BALANCE OR NET POSITION - DECEMBER 31 201,491,531$ 210,608,293$ 212,994,306$ 216,605,686$ 12/3/2021 CITY OF EDINA Proposed Budget by Fund Type Governmental Enterprise Internal Service Governmental Enterprise Internal Service Funds Funds Funds Total Funds Funds Funds Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 45,367,336$ -$ -$ 45,367,336$ 47,982,098$ -$ -$ 47,982,098$ Tax increments 1,670,245 - - 1,670,245 1,723,245 - - 1,723,245 Franchise fees & other taxes 3,120,000 - - 3,120,000 3,120,000 - - 3,120,000 Special assessments 4,624,553 - - 4,624,553 3,726,253 - - 3,726,253 Licenses and permits 5,464,560 - - 5,464,560 5,540,160 - - 5,540,160 Intergovernmental 5,940,309 180,000 - 6,120,309 4,520,100 180,000 - 4,700,100 Charges for services 5,932,905 - - 5,932,905 6,140,291 - - 6,140,291 Fines and forfeitures 650,000 - - 650,000 650,000 - - 650,000 Operating revenue - 54,139,043 6,840,351 60,979,394 - 56,223,559 6,991,192 63,214,751 Investment income 655,000 381,000 - 1,036,000 655,000 381,000 - 1,036,000 Other revenue 667,622 20,000 - 687,622 667,622 20,000 - 687,622 Contributions - - - - - - - - Transfers 3,229,563 1,191,000 - 4,420,563 3,074,252 1,203,350 - 4,277,602 Loan received - - - - - - - - Debt issued 1,768,370 - - 1,768,370 2,813,402 - - 2,813,402 Other financing sources 250,000 - - 250,000 - - - - TOTAL REVENUES AND OTHER FINANCING SOURCES 79,340,463 55,911,043 6,840,351 142,091,857 80,612,423 58,007,909 6,991,192 145,611,524 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY FUNCTION Administration 3,092,833 - - 3,092,833 3,150,731 - - 3,150,731 Communications 1,829,674 - - 1,829,674 1,706,364 - - 1,706,364 Information technology 50,000 - 2,303,438 2,353,438 30,000 - 2,373,686 2,403,686 Human resources 1,462,010 - 1,101,903 2,563,913 1,523,510 - 1,107,234 2,630,744 Finance 1,297,658 409,281 - 1,706,939 1,340,388 411,968 - 1,752,356 Public works 6,540,413 19,605,891 1,966,101 28,112,405 6,708,898 20,341,298 2,015,368 29,065,564 Engineering 14,470,948 1,362,510 1,356,361 17,189,819 15,658,630 1,295,519 1,379,522 18,333,671 Police 14,886,865 1,738,117 - 16,624,982 15,762,099 1,769,272 - 17,531,371 Fire 12,647,083 - - 12,647,083 13,218,827 - - 13,218,827 Parks & recreation 7,610,321 28,535,275 - 36,145,596 7,471,868 29,262,244 - 36,734,112 Community development 7,014,431 - - 7,014,431 4,709,140 - - 4,709,140 Loan issued - - - - - - - - Debt service 6,004,168 - - 6,004,168 6,485,977 - - 6,485,977 Transfers 2,979,563 1,441,000 - 4,420,563 2,816,752 1,460,850 - 4,277,602 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 79,885,967 53,092,074 6,727,803 139,705,844 80,583,184 54,541,151 6,875,810 142,000,145 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of goods sold - 11,027,161 - 11,027,161 - 11,414,891 - 11,414,891 Personal services 36,942,679 11,475,078 2,739,463 51,157,220 38,473,537 11,949,186 2,861,770 53,284,493 Contractual services 13,787,885 14,399,105 2,620,440 30,807,430 11,659,239 14,639,611 2,628,440 28,927,290 Commodities 2,559,719 2,338,650 1,222,900 6,121,269 2,612,645 2,320,850 1,235,600 6,169,095 Internal services 5,027,018 2,948,930 - 7,975,948 5,145,766 3,045,186 - 8,190,952 Equipment 1,728,550 - - 1,728,550 1,936,665 - - 1,936,665 Capital outlay 10,856,385 - 145,000 11,001,385 11,452,603 - 150,000 11,602,603 Depreciation - 8,790,000 - 8,790,000 - 8,985,000 - 8,985,000 Loan issued - - - - - - - - Debt service 6,004,168 672,150 - 6,676,318 6,485,977 725,577 - 7,211,554 Other expense - - - - - - - - Contributions - - - - - - - - Transfers 2,979,563 1,441,000 - 4,420,563 2,816,752 1,460,850 - 4,277,602 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 79,885,967 53,092,074 6,727,803 139,705,844 80,583,184 54,541,151 6,875,810 142,000,145 CHANGE IN FUND BALANCE OR NET POSITION (545,504) 2,818,969 112,548 2,386,013 29,239 3,466,758 115,382 3,611,379 FUND BALANCE OR NET POSITION - JANUARY 1 87,461,014 120,309,380 2,837,899 210,608,293 86,915,510 123,128,349 2,950,447 212,994,306 FUND BALANCE OR NET POSITION - DECEMBER 31 86,915,510$ 123,128,349$ 2,950,447$ 212,994,306$ 86,944,750$ 126,595,107$ 3,065,829$ 216,605,686$ 2022 Budget 2023 Budget 12/3/2021 CITY OF EDINA Proposed Governmental Fund Budgets Braemar Debt General HRA PACS CAS CDBG Police SR Memorial Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 36,708,036$ 237,300$ -$ -$ -$ -$ -$ 3,232,000$ 5,190,000$ 45,367,336$ Tax increments - 1,670,245 - - - - - - - 1,670,245 Franchise fees & other taxes 830,000 - 1,200,000 1,000,000 - - - - 90,000 3,120,000 Special assessments - - - - - - - - 4,624,553 4,624,553 Licenses and permits 5,391,060 - - - - - - - 73,500 5,464,560 Intergovernmental 1,888,750 - - - 135,000 - - - 3,916,559 5,940,309 Charges for services 5,737,905 - - - - - - - 195,000 5,932,905 Fines and forfeitures 650,000 - - - - - - - - 650,000 Investment income 250,000 186,000 - 15,000 - - 1,000 - 203,000 655,000 Other revenue 376,000 - - - - 289,122 2,500 - - 667,622 Transfers and contributions 150,000 - - - - - - 2,979,563 100,000 3,229,563 Debt issued - - - - - - - - 1,768,370 1,768,370 Other financing sources 250,000 - - - - - - - - 250,000 TOTAL REVENUES AND OTHER FINANCING SOURCES 52,231,751 2,093,545 1,200,000 1,015,000 135,000 289,122 3,500 6,211,563 16,160,982 79,340,463 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,026,833 - - - - - - - 66,000 3,092,833 Communications 1,524,674 - - - - - - - 305,000 1,829,674 Information technology - - - - - - - - 50,000 50,000 Human resources 1,462,010 - - - - - - - - 1,462,010 Finance 1,297,658 - - - - - - - - 1,297,658 Public works 6,005,413 - - - - - - - 535,000 6,540,413 Engineering 3,616,299 - 1,251,894 752,185 - - - - 8,850,570 14,470,948 Police 14,175,815 - - - - 264,500 - - 446,550 14,886,865 Fire 12,392,083 - - - - - - - 255,000 12,647,083 Parks & recreation 6,631,321 - - - - - 1,000 - 978,000 7,610,321 Community development 2,099,645 4,704,786 - - 135,000 - - - 75,000 7,014,431 Debt service - 133,967 - - - - - 5,870,201 - 6,004,168 Transfers - - - - - - - - 2,979,563 2,979,563 TOTAL EXPENDITURES AND OTHER FINANCING USES 52,231,751 4,838,753 1,251,894 752,185 135,000 264,500 1,000 5,870,201 14,540,683 79,885,967 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 36,366,347 197,566 124,371 145,820 - - - - 108,575 36,942,679 Contractual services 8,378,854 4,504,220 75,720 96,020 135,000 257,000 1,000 - 340,071 13,787,885 Commodities 2,478,344 3,000 13,000 1,200 - 7,500 - - 56,675 2,559,719 Internal services 5,008,206 - 8,803 9,145 - - - - 864 5,027,018 Equipment - - - - - - - - 1,728,550 1,728,550 Capital outlay - - 1,030,000 500,000 - - - - 9,326,385 10,856,385 Debt service - 133,967 - - - - - 5,870,201 - 6,004,168 Transfers - - - - - - - - 2,979,563 2,979,563 TOTAL EXPENDITURES AND OTHER FINANCING USES 52,231,751 4,838,753 1,251,894 752,185 135,000 264,500 1,000 5,870,201 14,540,683 79,885,967 CHANGE IN FUND BALANCE -$ (2,745,208)$ (51,894)$ 262,815$ -$ 24,622$ 2,500$ 341,362$ 1,620,299$ (545,504)$ 2022 GOVERNMENTAL FUND BUDGETS 12/3/2021 CITY OF EDINA Proposed Governmental Fund Budgets Braemar Debt General HRA PACS CAS CDBG Police SR Memorial Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 38,947,298$ 244,400$ -$ -$ -$ -$ -$ 3,230,000$ 5,560,400$ 47,982,098$ Tax increments - 1,723,245 - - - - - - - 1,723,245 Franchise fees & other taxes 830,000 - 1,200,000 1,000,000 - - - - 90,000 3,120,000 Special assessments - - - - - - - - 3,726,253 3,726,253 Licenses and permits 5,466,160 - - - - - - - 74,000 5,540,160 Intergovernmental 1,605,100 - - - 135,000 - - - 2,780,000 4,520,100 Charges for services 5,945,291 - - - - - - - 195,000 6,140,291 Fines and forfeitures 650,000 - - - - - - - - 650,000 Investment income 250,000 186,000 - 15,000 - - 1,000 - 203,000 655,000 Other revenue 376,000 - - - - 289,122 2,500 - - 667,622 Transfers and contributions 157,500 - - - - - - 2,816,752 100,000 3,074,252 Debt issued - - - - - - - - 2,813,402 2,813,402 Other financing sources - - - - - - - - - - TOTAL REVENUES AND OTHER FINANCING SOURCES 54,227,349 2,153,645 1,200,000 1,015,000 135,000 289,122 3,500 6,046,752 15,542,055 80,612,423 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,084,731 - - - - - - - 66,000 3,150,731 Communications 1,593,364 - - - - - - - 113,000 1,706,364 Information technology - - - - - - - - 30,000 30,000 Human resources 1,523,510 - - - - - - - - 1,523,510 Finance 1,340,388 - - - - - - - - 1,340,388 Public works 6,148,108 - - - - - - - 560,790 6,708,898 Engineering 3,826,591 - 1,257,188 732,345 - - - - 9,842,506 15,658,630 Police 14,815,549 - - - - 137,000 - - 809,550 15,762,099 Fire 12,896,827 - - - - - - - 322,000 13,218,827 Parks & recreation 6,829,543 - - - - - 1,000 - 641,325 7,471,868 Community development 2,168,738 2,405,402 - - 135,000 - - - - 4,709,140 Debt service - 472,250 - - - - - 6,013,727 - 6,485,977 Transfers - - - - - - - - 2,816,752 2,816,752 TOTAL EXPENDITURES AND OTHER FINANCING USES 54,227,349 2,877,652 1,257,188 732,345 135,000 137,000 1,000 6,013,727 15,201,923 80,583,184 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 37,867,139 204,932 129,399 155,688 - - - - 116,379 38,473,537 Contractual services 8,704,256 2,197,470 75,720 66,020 135,000 129,500 1,000 - 350,273 11,659,239 Commodities 2,529,570 3,000 13,000 1,200 - 7,500 - - 58,375 2,612,645 Internal services 5,126,384 - 9,069 9,437 - - - - 876 5,145,766 Equipment - - - - - - - - 1,936,665 1,936,665 Capital outlay - - 1,030,000 500,000 - - - - 9,922,603 11,452,603 Debt service - 472,250 - - - - - 6,013,727 - 6,485,977 Transfers - - - - - - - - 2,816,752 2,816,752 TOTAL EXPENDITURES AND OTHER FINANCING USES 54,227,349 2,877,652 1,257,188 732,345 135,000 137,000 1,000 6,013,727 15,201,923 80,583,184 CHANGE IN FUND BALANCE -$ (724,007)$ (57,188)$ 282,655$ -$ 152,122$ 2,500$ 33,025$ 340,132$ 29,239$ 2023 GOVERNMENTAL FUND BUDGETS 12/3/2021 CITY OF EDINA Proposed Enterprise Fund Budgets Aquatic Golf Sports Art Utilities Liquor Center Course Arena Dome Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 27,605,752$ 15,112,595$ 1,059,070$ 4,511,500$ 2,632,739$ 510,000$ 502,483$ 1,388,904$ 816,000$ 54,139,043$ Intergovernmental 180,000 - - - - - - - - 180,000 Investment income 302,000 21,000 20,000 9,000 3,000 11,000 - 11,000 4,000 381,000 Other revenue 20,000 - - - - - - - - 20,000 Transfers and contributions - 3,500 15,000 50,550 340,000 950 350,000 11,000 420,000 1,191,000 TOTAL REVENUES AND TRANSFERS IN 28,107,752 15,137,095 1,094,070 4,571,050 2,975,739 521,950 852,483 1,410,904 1,240,000 55,911,043 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 409,281 - - - - - - - - 409,281 Public works 19,605,891 - - - - - - - - 19,605,891 Engineering 1,362,510 - - - - - - - - 1,362,510 Fire 1,738,117 - - - - - - - - 1,738,117 Parks and recreation - 14,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 28,535,275 Transfers and contributions 441,000 1,000,000 - - - - - - - 1,441,000 TOTAL EXPENSES AND TRANSFERS OUT 23,556,799 15,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 53,092,074 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 10,582,911 51,750 191,000 111,000 - 500 78,000 12,000 11,027,161 Personal services 2,996,962 2,373,276 518,515 1,960,542 1,204,319 145,293 582,296 910,139 783,736 11,475,078 Contractual services 10,828,317 680,474 190,509 671,500 1,062,622 202,070 114,819 371,476 277,318 14,399,105 Commodities 1,190,500 76,300 132,600 390,000 134,250 23,250 76,500 171,750 143,500 2,338,650 Internal services 1,573,672 397,369 41,819 322,661 236,115 37,569 62,457 149,155 128,113 2,948,930 Depreciation 6,127,000 117,000 290,000 899,000 660,000 514,000 6,000 140,000 37,000 8,790,000 Interest 399,348 - 7,439 201,254 64,109 - - - - 672,150 Transfers and contributions 441,000 1,000,000 - - - - - - - 1,441,000 TOTAL EXPENSES AND TRANSFERS OUT 23,556,799 15,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 53,092,074 CHANGE IN NET POSITION 4,550,953$ (90,235)$ (138,562)$ (64,907)$ (496,676)$ (400,232)$ 9,911$ (409,616)$ (141,667)$ 2,818,969$ 2022 ENTERPRISE FUND BUDGETS 12/3/2021 CITY OF EDINA Proposed Enterprise Fund Budgets Aquatic Golf Sports Art Utilities Liquor Center Course Arena Dome Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 28,979,624$ 15,665,239$ 1,089,070$ 4,562,500$ 2,642,739 560,000$ 502,483$ 1,388,904$ 833,000$ 56,223,559$ Intergovernmental 180,000 - - - - - - - - 180,000 Investment income 302,000 21,000 20,000 9,000 3,000 11,000 - 11,000 4,000 381,000 Other revenue 20,000 - - - - - - - - 20,000 Transfers and contributions - 3,750 16,000 53,600 392,000 1,000 300,000 12,000 425,000 1,203,350 TOTAL REVENUES AND TRANSFERS IN 29,481,624 15,689,989 1,125,070 4,625,100 3,037,739 572,000 802,483 1,411,904 1,262,000 58,007,909 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 411,968 - - - - - - - - 411,968 Public works 20,341,298 - - - - - - - - 20,341,298 Engineering 1,295,519 - - - - - - - - 1,295,519 Fire 1,769,272 - - - - - - - - 1,769,272 Parks and recreation - 14,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 29,262,244 Transfers and contributions 460,850 1,000,000 - - - - - - - 1,460,850 TOTAL EXPENSES AND TRANSFERS OUT 24,278,907 15,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 54,541,151 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 10,970,141 52,250 191,000 111,000 - 500 78,000 12,000 11,414,891 Personal services 3,113,700 2,490,550 532,559 2,047,206 1,248,641 150,689 601,125 947,015 817,701 11,949,186 Contractual services 11,089,188 681,984 190,234 673,050 1,007,222 211,070 115,819 387,676 283,368 14,639,611 Commodities 1,200,700 70,600 114,700 391,000 140,750 25,250 79,000 149,900 148,950 2,320,850 Internal services 1,624,720 408,284 43,183 334,130 244,365 38,779 64,684 154,460 132,581 3,045,186 Depreciation 6,307,000 117,000 290,000 904,000 665,000 514,000 6,000 145,000 37,000 8,985,000 Interest 482,749 - 4,775 179,617 58,436 - - - - 725,577 Transfers and contributions 460,850 1,000,000 - - - - - - - 1,460,850 TOTAL EXPENSES AND TRANSFERS OUT 24,278,907 15,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 54,541,151 CHANGE IN NET POSITION 5,202,717$ (48,570)$ (102,631)$ (94,903)$ (437,675) (367,788)$ (64,645)$ (450,147)$ (169,600)$ 3,466,758$ 2023 ENTERPRISE FUND BUDGETS 12/3/2021 CITY OF EDINA Proposed Internal Service Fund Budgets Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 1,101,912$ 2,005,452$ 2,349,507$ 1,383,480$ 6,840,351$ TOTAL REVENUES AND TRANSFERS IN 1,101,912 2,005,452 2,349,507 1,383,480 6,840,351 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Information technology - - 2,303,438 - 2,303,438 Human resources 1,101,903 - - - 1,101,903 Public works - 1,966,101 - - 1,966,101 Engineering - - - 1,356,361 1,356,361 TOTAL EXPENSES AND TRANSFERS OUT 1,101,903 1,966,101 2,303,438 1,356,361 6,727,803 EXPENSES AND TRANSFERS OUT - BY TYPE Personal services 157,103 768,681 1,262,038 551,641 2,739,463 Contractual services 944,800 197,020 871,400 607,220 2,620,440 Commodities - 1,000,400 25,000 197,500 1,222,900 Capital Outlay - - 145,000 - 145,000 TOTAL EXPENSES AND TRANSFERS OUT 1,101,903 1,966,101 2,303,438 1,356,361 6,727,803 CHANGE IN NET POSITION 9$ 39,351$ 46,069$ 27,119$ 112,548$ 2022 INTERNAL SERVICE FUND BUDGETS 12/3/2021 CITY OF EDINA Proposed Internal Service Fund Budgets Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 1,107,240$ 2,055,684$ 2,421,160$ 1,407,108$ 6,991,192$ TOTAL REVENUES AND TRANSFERS IN 1,107,240 2,055,684 2,421,160 1,407,108 6,991,192 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Information technology - - 2,373,686 - 2,373,686 Human resources 1,107,234 - - - 1,107,234 Public works - 2,015,368 - - 2,015,368 Engineering - - - 1,379,522 1,379,522 TOTAL EXPENSES AND TRANSFERS OUT 1,107,234 2,015,368 2,373,686 1,379,522 6,875,810 EXPENSES AND TRANSFERS OUT - BY TYPE Personal services 162,434 797,148 1,328,386 573,802 2,861,770 Contractual services 944,800 205,120 870,300 608,220 2,628,440 Commodities - 1,013,100 25,000 197,500 1,235,600 Capital Outlay - - 150,000 - 150,000 TOTAL EXPENSES AND TRANSFERS OUT 1,107,234 2,015,368 2,373,686 1,379,522 6,875,810 CHANGE IN NET POSITION 6$ 40,316$ 47,474$ 27,586$ 115,382$ 2023 INTERNAL SERVICE FUND BUDGETS 12/3/2021 The CITY ofEDINA 2022-2023 City Manager Proposed Budget December 7, 2021 The CITY ofEDINAAgenda •Budget process and timeline •Budget Goals and Values •Big Picture •2022-2023 Budget Strategies •2022-2023 Financials •Recommendation 2 The CITY ofEDINA Budget Process and Timeline 3 The CITY ofEDINABiennial Budget Process 2021 (Odd Year) Second year of 2020- 2021 Budget Approve 2022-2023 budget, including CIP levy 2022 (Even Year) First year of 2022- 2023 Budget Review/approve of 2023-2027 CIP www.EdinaMN.gov 4 The CITY ofEDINATimeline 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 Dec. 7 TNT Budget Hearing (CC and HRA)CC/HRA Meeting Dec. 21 Last Day to Adopt Budget CC/HRA Meeting 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 The CITY ofEDINA Budget Goals and Values 7 The CITY ofEDINABudget Goals and Values 8 Budget Pillars: The broad goals that must be achieved by every budget. Budget Values: The beliefs that guide decision-making. Budget Strategies: The specific actions, projects, and targets to strengthen the pillars in this two-year budget. Budget Pillars City infrastructure, facilities, technology, and equipment meets community needs now and in the future. City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. City government fosters an inclusive, informed and engaged community. City services enhance the safety, wellbeing, and quality of life experienced in Edina. Budget Values Stewardship •We make wise investments that focus on the best long- term value for residents. Equity •We provide equitable opportunities for people to participate in their City government and access City institutions, facilities, and services. Health •We use a Health-in-All Policies approach to promote and protect the physical, mental, and social wellbeing of all people who live, work, or visit Edina. Sustainability •We ensure that our policies, decisions, and plans have a positive impact on people and the planet now and for future generations. The CITY ofEDINAThe Big Picture What does this budget proposal accomplish in the community? 11 The CITY ofEDINA2022-2023 Budget •Investments in Public Safety •Preparation for Climate Change •Investments in Capital Improvements •Preserving and enhancing our strong local economy •Greater emphasis on maintaining current assets •Investments in City employees –be a workplace of choice 12 The CITY ofEDINA www.EdinaMN.gov 13 Edina Consolidated Budget $140M Governmental Funds $80M General Fund $52.2M Debt Service Fund $6M Construction Fund $14.5M Special Revenue Funds, including HRA $7.2M Enterprise Funds $53M Utility Fund $23.5M Liquor Fund $15.2M Park Enterprises $14.3M Internal Service Funds $7M Risk Management $1.1M Equip. Operations $2M IT $2.3M Facilities $1.4M The CITY ofEDINAProposed 2022-23 Budget excluding Special Street Levy 14 Proposed Proposed 2021 2022 2023 General Fund 33,986,471$ 36,708,036$ 38,947,298$ 6.14%8.01%6.10% Arts/Culture 20,000$ -$ -$ 0%-100%N/A Debt Service 3,651,400$ 3,232,000$ 3,230,000$ -20.56%-11.49%-0.06% 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$ 44,417,336$ 46,771,698$ % Increase 5.95%5.71%5.30% The CITY ofEDINAInvestment & Benefits 15 •Safe, affordable, accessible residential streets. Increased funding to shift funding from special assessments to general property taxes and reduce burden to individual homeowners. 16-year incremental transition from special assessments to levy to fund City street reconstruction. 2022 is the first year of levy impact, each subsequent year will be a smaller % increase. The CITY ofEDINAProposed 2022-23 Budget including Special Street Levy 16 Sept. 23 Proposed Sept. 23 Proposed 2021 2022 2022 2023 2023 General Fund 33,986,471$ 36,708,036$ 36,708,036$ 38,947,298$ 38,947,298$ 6.14%8.01%8.01%6.10%6.10% Arts/Culture 20,000$ -$ -$ -$ -$ 0%-100%-100%N/A N/A Debt Service 3,651,400$ 3,657,000$ 3,232,000$ 3,653,000$ 3,230,000$ -20.56%0.15%-11.49%-0.11%-0.06% 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$ 45,792,336$ 45,367,336$ 48,405,098$ 47,982,098$ % Increase 5.95%8.98%7.97%5.71%5.76% The CITY ofEDINA 2022-2023 Budget Strategies 17 The CITY ofEDINA 18 •Increased investment in technology systems to ensure secure reliable systems that protect against threats and work when they are most needed, in times of emergency or natural hazard. •Replacement of Public Safety 911 Dispatch and Records Systems •Increased IT Staff (2) to support City-wide services and provide additional cyber-security •Expand City fiber optics network for faster and more secure connections Investment & Benefits The CITY ofEDINA 19 •Continue to invest in well-maintained public facilities and infrastructure.Maintaining and reinvesting in parks, recreation, buildings, and infrastructure ensures continuation of these assets that improve the safety and quality of life for residents. Investment & Benefits $ in 000s 2016 2017 2018 2019 2020 2021 2022 2023 Capital Improvement Plan Levy -102 327 300 800 2,000 2,000 2,000 The CITY ofEDINA 20 •Improve response and outcomes for mental health- related calls for emergency service.Increase contract with Hennepin County for embedded social worker within police department (from 0.5 to 1) •Increase emergency medical response by adding additional paramedic/firefighters (3) and maintaining paramedic/firefighters (6) added with SAFER Grant. Investment & Benefits The CITY ofEDINA 21 •Increase resources for responding to public data requests and managing secure elections add 1 staff member for increasing number and complexity of data requests and elections. •Provide a 2% overall market wage increases and competitive benefits to attract and retain a high-performing skilled workforce needed to deliver services to the community. Investment & Benefits The CITY ofEDINA 22 •Implement Climate Action Plan to begin shaping our community to better prepare for the challenges of Climate Change •Implement Sustainable Building Policy to begin making our built environment more energy efficient, which makes our local built environment more sustainable, which improves our ability to respond to Climate Change Investment & Benefits The CITY ofEDINA 23 •Improve tree protection and planting to better prepare the community for Climate Change by adding 1 position in Forestry. •Increase street-sweeping services to improve environmental protection by reducing waste from polluting our surface waters Investment & Benefits The CITY ofEDINA 24 •Ensure successful implementation of ARPA funding to benefit community and ensure stable City operations •Improve transparency tools and performance dashboards to better communicate overall City performance and budget to the public •Complete Quality of Life Survey to assess resident satisfaction with City services and quality of life in Edina Investment & Benefits The CITY ofEDINA 25 •Continue investment in equity initiatives to ensure everyone feels welcome and can access government facilities, services, and institutions •Continue investment in Boards & Commissions that reflect the diversity of the people it serves Investment & Benefits The CITY ofEDINA 2022-2023 Budget Financials 26 The CITY ofEDINA •AAA bond rating •2022 estimated market value is $13.8 billion •Southdale II TIF District decertification adds $6.875 million back to total tax capacity, which will be taxed in 2022. Strong, Diverse Economy 27 The CITY ofEDINAStable city tax levy with growing tax capacity 28 Providing best in class services requires reliable funding. City tax share of total tax capacity has hovered around 27-29% while total tax capacity has increased 62% over this time period.27%28%27%27%28%28%27%28%29%29% $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 City Tax Levy as % of Total Tax Capacity Tax Capacity Used for Local Rate Levy The CITY ofEDINA2022 Estimated Levy Impacts •In 2021 the median home valued at $551,300 pays about $135 per month in property taxes to fund all City provided services. •With the proposed property tax levy increase, the effect on the 2022 median valued home of $571,800 would be about a: o 4.87% increase in City property taxes o $80 increase per year, or $6.63 per month o $142 payment per month in 2022 City property taxes 29 The CITY ofEDINA2022 Change in City Tax by Property Type 30 Most property owners will see a city tax change of less than 5%. 1%14% 66% 13% 4%1%1% Single Family/Apartments <(5.0)%(4.9)-(0.0)%0.1-4.9%5-9.9%10-14.9%15-19.9%>20% The CITY ofEDINAWhat will my 2022 city taxes pay for? 31 General Government 15% Public Safety 41% Public Works 15% Parks and Recreation 10% Debt Service and Capital Outlay 19%$45.4 million property tax levy in 2022 Public safety is the largest tax levy-supported city service area The CITY ofEDINAWhat are the drivers of change in the levy? 32 Change Reason 3.40%Wages & benefits 2.26%Special street levy 1.2%Service level changes 1.0%Maintaining firefighters hired with SAFER grant .62%Inflationary cost pressures & offset by other changes (1.01%)Debt refinancing 7.97% The CITY ofEDINA2022-2023 Proposed Budget 33 The CITY ofEDINANext Steps •City Manager recommends approval of Resolution No. 2021-115 and HRA Resolution No. 2021-15 adopting the 2022 Budget and Tax Levy. 34 The CITY ofEDINAQuestions/Discussion 35 The CITY ofEDINA •RESOURCE SLIDES 36 The CITY ofEDINADebt Service Levy Projection 44 $- $1 $2 $3 $4 MillionsDebt Service Levy Projection City Hall Public Works (2013A)Fire Station Public Works (2017C)Public Works HRA Sports Dome Refunded Gymnasiums