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Home My WebLink About2023-09-05 City Council Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota City Hall Community Meeting Room Tuesday, September 5, 2023 5:30 PM I.Call To Order II.Roll Call III.City Manager Proposed 2024-25 Budget and Preliminary Levy IV.Development Project Updates and Public Input 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: September 5, 2023 Agenda Item #: III. To:Mayor and City Council Item Type: Other From:Alisha McAndrews, Finance Director Item Activity: Subject:City Manager Proposed 2024-25 Budget and Preliminary Levy Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discussion only. INTRODUCTION: The City Manager and staff will present the proposed budget and levy for 2024-2025. After this work session, the City Manager will ask Council Members to approve the preliminary levy on September 19, 2023, and, ultimately, the final levy before the end of December 2023. ATTACHMENTS: Description Proposed Budget and Levy Staff Presentation EdinaMN.gov 2024-2025 Levy and Budget September 5, 2023 Agenda 1.Summary Council Member feedback 2.Budget goals and values 3.Drivers of proposed levy increases 4.Community impact of investments 5.HRA levy proposal for affordable and attainable housing 6.Tax impact on Median Value Home (MVH) 7.Next Steps 8.Questions/Discussion Timeline Date Type Topic June 1 Dept head budget entry, new positions submitted June 8 S&B projections posted June 7-13 Finance reviews and enters remaining budgets June-July Staff develop scenarios July 19 ELT Meeting ELT Reviews Budget Draft Scenarios Aug 2 CC Work Session Draft budget scenarios & work plan Sept. 5 CC Work Session City Manager preliminary levy and budget Sept. 19 CC/HRA Meeting Adopt preliminary levy Nov. 21 CC Work Session Budget and Work Plan Dec. 5 CC/HRA Meeting TNT budget presentation & public hearing Dec. 19 CC Meeting Last day to adopt budget/levy Budget Goals and Values 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. Proposed Tax Levy Budget Proposed 2023 2024 2025 General Operating 39,820,200 43,850,665 48,241,973 8.48%10.12%10.01% Debt Service 3,230,000 3,471,700 5,785,900 -0.06%7.48%66.66% Construction 6,560,400 6,951,000 7,172,000 26.40%5.95%3.18% HRA 244,400 251,700 259,300 2.99%2.99%3.02% Total Tax Levy 49,855,000 54,525,065 61,459,173 % increase 9.89%9.37%12.72% 2024-25 Cost Drivers of Operating Levy Increase •Salary & benefits ($4.2M) •Contracts for goods & services ($2.3M) •Workers’ comp and IT software & security ($840K) •New positions ($291K) •Centennial Lakes Park Operations ($200K) •Use of one-time revenue from budget stabilization fund helps offset spending increases ($2M) Investment & Impact - Examples •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. •Street Lighting replacement to keep streets safe and reduce energy use. •Fire Station 3 construction to ensure ambulance and fire response needs are met in the long-term Investment & Impact - Examples •Improve public safety response and outcomes.Addition of 4 patrol officers, mental health investigator and neighborhood engagement officer. •Respond to increasing calls for service/complexity of calls for emergency medical response by adding additional paramedic/firefighters (6) in 2025 at the new fire station. •Provide market wage increases and competitive benefits to attract and retain a high-performing skilled workforce needed to deliver services to the community. •Improve safety and ability to adequately respond to social disruption events in recreation enterprises. Addition of 1 Facility Coordinator in 2024 and 1 in 2025. 2024 Estimated Levy Impact •For current tax year, the median value home (MVH) is $659,900 pays about $164 per month in property taxes to fund all City provided services •The MVH is $696,600 for taxes payable in 2024. •With a 9.37% city property tax increase, the effect on the MVH in 2025 is estimated: •7.75% increase in City property taxes •$152. 97 increase per year, or $12.75/month How Does Edina Compare? City MVH Levy Increase Tax Rate Tax $ on MVH Plymouth $ 470,000 8.10%25.25%$ 1,194 Maple Grove $ 431,600 7.89%27.36%$ 1,181 Eden Prairie $ 536,400 5.30%28.51%$ 1,591 Edina $ 696,600 9.37%28.51%$ 2,126 Lakeville $ 446,500 10.50%30.09%$ 1,343 Eagan $ 393,400 6.90%33.54%$ 1,313 Minnetonka $ 496,500 7.75%34.32%$ 1,715 Apple Valley $ 362,300 8.44%36.54%$ 1,358 Burnsville $ 351,500 7.63%42.59%$ 1,473 St. Louis Park $ 373,000 7.90%46.36%$ 1,712 How Does Edina Compare? City Tax Rate Tax $ on $700,000 Plymouth 25.25%$ 1,894 Maple Grove 27.36%$ 2,052 Eden Prairie 28.51%$ 2,138 Edina 28.51%$ 2,138 Lakeville 30.09%$ 2,257 Eagan 33.54%$ 2,516 Minnetonka 34.32%$ 2,574 Apple Valley 36.54%$ 2,741 Burnsville 42.59%$ 3,194 St. Louis Park 46.36%$ 3,477 HRA Levy to Fund Affordable and Attainable Housing Strategies •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 $3.1M in Edina in 2024 •HRA levies must be used only for purposes listed in the HRA Act, which includes affordable housing. •Proposed incremental increase of $1M in 2024 and statutory max in 2025. Proposed Levy with Funding for Affordable and Attainable Housing Strategies Budget Proposed 2023 2024 2025 General Operating 39,820,200 43,850,665 $ 48,241,973 8.48%10.12%10.01% Debt Service 3,230,000 3,471,700 5,785,900 -0.06%7.48%66.66% Construction 6,560,400 6,951,000 7,172,000 26.40%5.95%3.18% HRA 244,400 1,251,700 3,110,016 2.99%397.30%148.46% Total Tax Levy 49,855,000 55,645,065 64,309,889 % increase 9.89%11.61%15.57% 2024 Estimated Levy Impact •For current tax year, the median value home (MVH) is $659,900 pays about $164 per month in property taxes to fund all City provided services •The MVH is $696,600 for taxes payable in 2024. •With a 9.37% city property tax increase, the effect on the MVH in 2024 is estimated: •7.75% increase in City property taxes •$152. 97 increase per year, or $12.75/month •With a 11.61% city property tax increase, the effect on the MVH in 2024 is estimated: •9.78% increase in City property taxes •$193 increase per year, or $16.08/month Questions/Discussion •Nov. 21 Date: September 5, 2023 Agenda Item #: IV. To:Mayor and City Council Item Type: Reports / Recommendation From:MJ Lamon, Community Engagement Manager Item Activity: Subject:Development Project Updates and Public Input Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: The Planning Commission presented their formal recommendations on their 2023 work plan initiative to City Council earlier this year. The work plan initiative asked the commission to: •Review and recommend possible changes to the development review process including sketch plans, public feedback, and the public hearings. T his work plan item is continued over from 2022. At that time, City Council did not direct any changes, however, asked City staff to bring back recommendations to enhance the development process for the public. An internal staff team has been working to evaluate the current process and develop actions for updating the process. City Manager and staff will share actions with City Council. ATTACHMENTS: Description Staff Presentation EdinaMN.gov Development Projects Defining the problem, goals, and possible solutions Definitions •Public Input •Opportunity for individuals to provide information, facts, data, figures and opinions respecting an issue under consideration. •Techniques of Public Input •The different ways public input is collected. Public InputOn-line Mail Phone Email In person Public Hearing Background •Last changes were January 2021 •Last review September 2021 •Housing Task Force Recommendation 2020 •Streamline the approval process for housing development requiring a variance or subsidy. •Planning Commission 2023 Work Plan project •Review and recommend possible changes to the development review process including sketch plans, public feedback, and the public hearings. This work plan item is continued over from 2022. Development Project Comments One-way testimony from resident (no back and forth dialogue) Goal is to & ensure all perspectives have been surfaced and considered (final check) Council does not require individuals to be residents Individual Council Members determine how to evaluate feedback •One-time opportunity •At a public meeting •Live testimony only •Decision at same meeting Pre-COVID •On-line/real time comments for Planning Commission •Decision at the same meeting Pre-COVID Additions •Remove barriers for participation by creating access to opportunities •Create more ways to provide feedback and assure people they only need to participate one way •Having a more informed decision Goals •Multi-week opportunity •Virtual / Remote option •Multiple comment methods including call in •Transition from real time comments to comment form COVID Development Project Evolution Current Process Application Notice Planning Commission City Council Meeting 1 City Council Meeting 2 Better Together – Form Tool (collected on backend) Notices mailed Public Hearing •In person •Call-In Public Hearing •In person •Call-In Recommendation Discussion Decision60 day clock starts Defining the Problem & Using Data Challenges •Lengthy Process •Confusing deadlines •In person input evaluated differently than other methods (inequity in comments) •Development reaches small % of the community (typically those against) •Comments received late in the process •Plans change •Current development tracker not well known •Deciphering practical feedback vs objector feedback •There is no perfect method Barriers to Participation Don’t know when or how to participate Information overload Process is complicated The decision to be made is unclear Unable to participate Time, location and number of public meetings Frustrating and difficult for residents to attend multiple meetings on same topic Don't have the time/energy/knowledge/confidence Don’t trust the process Public hearings occur at the end of the process Late meetings look and feel less transparent Individuals who commented in the past don’t feel like their participation mattered *Source International Association for Public Participation Data SAMPLE PROJECTS: •Interlachen CUP & Variance •Former PW Site •Fred 1 •McCauley Subdivision •Off Street Parking Regulations Ordinance •Perkins Preliminary Rezoning •France Villas •US Bank •Westside Café What does the data show? Greater participation on Better Together Edina Comments are not limited to Edina residents Comments are not limited to adjacent/neighboring residents High participation in some quadrants, low in others Repeat commenters Time and day people are commenting Goals & Possible Solutions Goals 2021 •Remove barriers for participation by creating access to opportunities •Create more ways to provide feedback and assure people they only need to participate one way •Having a more informed decision PLANNING COMMISSION •Simplify the development review process Shorten the process One public hearing One City Council meeting •Optimize the development review process Engage stakeholders proactively, more equitably, and longer One public hearing earlier (at the PC meeting) One public hearing (not at CC) will strengthen other forms of participation Better Together Edina open after public hearing •Implement new development review process Use public feedback loop, reassess after 2 years Staff Actions Create graphic to illustrate the process & update mailed notices 1 Create Better Together Landing page (HUB) & Project Map 2 Allow comments to be available in real time 3 Action 1: Graphic & Mailed Notices •Illustrate the steps of the process •Highlight the public input process •Convey input is desired early and only one form of input is needed •Simplify mailed notice Action 2: Better Together Edina HUB & Project Map •Allow neighbors to learn from each other •Developers address questions/issues earlier in the process •Planning Commission and City Council review in real time Action 3: Real Time Comments Real Time Comments Tool Council Role Weigh all comments equally regardless of how they are received 1 Encourage participation early in the process 2 Visit BTE to review real time comments 3 Next Steps •Development Project HUB & Project Map launch September 8 •New projects after September 8 will follow new public input process