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Home My WebLink About2023-09-19 City Council Work Session PacketAgenda City Council Work Session City of Edina, Minnesota City Hall Community Meeting Room Tuesday, September 19, 2023 5:30 PM I.Call To Order II.Roll Call III.2024-2025 Budget and Preliminary Tax Levy 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: September 19, 2023 Agenda Item #: III. To:Mayor and City Council Item Type: From:Scott Neal, City Manager Item Activity: Subject:2024-2025 Budget and Preliminary Tax Levy Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: No action required. For discussion only. INTRODUCTION: City Manager will present 2024-2025 budget and preliminary tax levy for consideration. ATTACHMENTS: Description Draft 2024-2025 Budget Work Plan Staff Presentation 2024-2025 DRAFT Budget Work Plan September 19, 2023 Page 1 Budget Work Plan Development The City Council and staff develop a two-year Budget Work Plan to coincide with the operating budget. The Budget Work Plan contains specific strategies and actions that staff will pursue in the two-year budget cycle to achieve strategic outcomes for the city and community. The Budget Work Plan is organized by Budget Pillar. Budget Pillars: The broad goals that must be achieved by every budget. Each budget pillar has objectives defining success for each pillar. Budget Values: The beliefs that guide decision making. Budget Strategies & Actions: The specific actions, projects and targets to strengthen the pillars in this two- year budget. The draft 2024-2025 Budget Work Plan Strategies and Actions are displayed below, grouped by budget pillar. Where an icon is displayed in the description of the strategy or action, that item is cross listed on those two pillars. Budget Pillars, Objectives, Strategies & Actions Pillar 1: Strong Foundation City infrastructure, facilities, technology, and equipment meets community needs now and in the future. 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 Budget Values Budget Strategies & Actions 2024-2025 DRAFT Budget Work Plan September 19, 2023 Page 2 Strong Foundation Strategies & Actions: # 2024-2025 Strategies & Actions Department Lead 1 Cahill Area / Industrial Area sanitary sewer trunk capacity expansion Engineering 2 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 3 Determine long-term plan for future of the Art Center building and delivery of art programs. Parks & Recreation 4 Grandview Area transportation improvements Engineering 5 Local option sales tax projects: Fred Richards Park and Braemar Park Parks & Recreation 6 Reassess City Hall space needs for post-pandemic service delivery Engineering 7 York Avenue sanitary sewer trunk capacity expansion Engineering Pillar 2: Reliable Service City services enhance the safety, wellbeing, and quality of life experienced in Edina. 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. Reliable Service Strategies & Actions: # 2024-2025 Strategies & Actions Department Lead 8 Increase resources, training, and coordination for responding to mental health-related calls for service. Fire, Police 9 Implement new agreement with Edina Public Schools regarding election administration for 2025 and beyond. Administration 10 Determine and plan for THC/Cannabis legislation impacts Parks & Recreation 11 Support staff who experience social disruption events and those who may deal with increased wellness and PTSD effects through adequate staffing levels, preventative measures, and after-event follow up. Human Resources See also strategies 2,3,6 under Strong Foundation. 2024-2025 DRAFT Budget Work Plan September 19, 2023 Page 3 Pillar 3: Livable City City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. 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. • 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. Livable City Strategies & Actions: # 2024-2025 Strategies & Actions Department Lead 12 Advance progress to affordable housing goals, including increasing housing options and developing long-term growth strategy Community Development 13 Prepare for Comprehensive Plan update, including a focus on balancing mixed-use nodes, activation and commercial zoning Community Development Pillar 4: Better Together City government fosters an inclusive, informed and engaged community. These four pillars guide the budget making process, including the budget work plan. 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 ensure 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. 2024-2025 DRAFT Budget Work Plan September 19, 2023 Page 4 Better Together Strategies & Actions: # 2024-2025 Strategies & Actions Department Lead 14 Administer 2025 Quality of Live Survey. Communications 15 Refine community engagement processes, including how to engage throughout the city with unity, not division Administration See also strategy 8 under Reliable Service. EdinaMN.gov 2024-2025 Preliminary Levy and Budget September 19, 2023 Agenda 1.Budget 2.Process and timeline 3.2024-25 proposed budget and levy increases 4.Community impact of investments 5.Tax impact on Median Value Home (MVH) 6.Next Steps 7.Questions/Discussion 2024 Proposed Consolidated Budget Edina Consolidated Budget $188M Governmental Funds $106.8M General Fund $63M Debt Service Fund $7.8M Construction Fund $25.6M Special Revenue Funds, including HRA $10.3M Enterprise Funds $73.7M Utility Fund $44.6M Liquor Fund $15M Park Enterprises $14.1M Internal Service Funds $9.1M Risk Management $2.7M Equip. Operations $2.2M IT $2.8M Facilities $1.4M 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 2024-2025 Budget & Work Plan Budget Pillars •Must be achieved by every budget •Broad goals •Evergreen Values •Guide decision making •Evergreen Strategies & Actions •Strengthen progress toward each pillar •Specific actions for each budget cycle Goals (Pillars) Budget Pillars Budget Values Budget Strategies & Actions 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. •Cahill Area sanitary sewer capacity expansion •Fire Station 3 site selection and planning •Art Center facility and programming •Grandview area transportation improvements •Fred Richards Park & Braemar Park and Arena •Reassess City Hall space needs •York Avenue sanitary sewer capacity expansion 2024-2025 Budget Work Plan •Mental health calls for service resources and training •Edina Public Schools elections for 2025 and beyond •THC/cannabis legislation impacts •Support staff who experience wellness and PTSD needs 2024-2025 Budget Work Plan •Advance affordable housing goals •Prepare for Comprehensive Plan update 2024-2025 Budget Work Plan •Administer 2025 Quality of Life survey •Refine community engagement processes 2024-2025 Budget Work Plan Proposed Tax Levy Budget Proposed 2023 2024 2025 General Operating 39,820,200 43,831,665 $ 48,623,073 8.48%10.07%10.93% 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 54,506,065 61,840,273 % increase 9.89%9.33%13.46% 2024 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 •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. Investment & Impact •Improve public safety response and outcomes.Addition of 4 patrol officers, mental health response officer 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. What do you get for your tax dollar? •911 operators in Edina will take your calls for help 24/7/365 •Professional Police Officers will respond to your calls for help 24/7/365 •Compassionate Firefighter/Paramedics will respond to respond to your calls for help 24/7/365 •Professionals in our Public Health Division ensure safety in rental homes, restaurants and swimming pools •Building Inspectors that buildings are constructed safely and to building code requirements •Parks Maintenance employees to maintain Edina’s beautiful parks and playgrounds •Public Works Dept employees remove snow and ice from your streets quickly, safely and efficiently •Communications employees use multiple platforms to tell you what is happening in the City •Professional real estate assessors make sure that property values are updated and accurate •Public Works Dept employees repair and maintain streets that are safe for driving cars, bicycles and pedestrians •And much, much more… Our 2024-2025 Budget’s Response to 2023 Quality of Life Survey •Finding: Residents continue to rate their overall quality of life in Edina highly Response: Maintain current service levels at current quality levels •Finding: Residents generally feel safe in the community, but that feeling has decreased Response: Enhance law enforcement staffing to keep robust staffing levels on the street; increase levels of public safety programming through MAC, neighborhood officers, traffic enforcement and mental health response team •Finding: Residents gave very high ratings to the work of the Fire Dept. Response: Continue the growth and development of the Fire Dept., particularly around their ALS services and preparing for the new Fire Station Estimated Market Value 9.4 9.1 8.9 9.0 9.8 10.4 10.9 11.6 12.4 12.9 13.3 15.5 16.8 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023$ Billions Hennepin County 29% City of Edina 23% Edina School District 41% Watershed, Metro Districts, & Other 7% 2023 Property Tax Distribution 2024 Estimated Levy Impact Edina Median Value Home 2022 2023 Change $659,900 $696,600 5.3% Edina Estimated Market Value 2022 2023 Change $15.4B $16.8B 9% 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 9.33% city property tax increase, the effect on the MVH in 2025 is estimated: •$177.14 in City property taxes per month, a 7.71% increase •$152. 21 increase per year, or $12.68/month Property Tax History 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900 $696,600 City tax $1,102 $1,140 $1,195 $1,266 $1,319 $1,393 $1,474 $1,566 $1,623 $1,706 $1,964 $2,125 Total tax $5,449 $5,606 $5,835 $6,276 $6,367 $6,715 $6,982 $7,251 $7,119 $7,413 $8,396 $8,965 $1,102 $1,964 $2,125 $5,449 $8,396 $8,965 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 "Median" Value Home Property Tax History 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total City (2003 dollars)$869 $884 $927 $972 $991 $1,021 $1,062 $1,115 $1,076 $1,059 $1,214 $1,307 Total Tax (2003 dollars)$4,298 $4,347 $4,527 $4,872 $4,782 $4,922 $5,030 $5,128 $4,805 $4,663 $5,170 $5,514 Median Value $396,300 $399,700 $438,800 $457,300 $466,500 $501,000 $530,650 $548,500 $551,300 $571,800 $659,900 $696,600 $869 $1,214 $1,307 $4,298 $5,170 $5,514 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 "Median" Home Property Tax History Adjusted for CPI (2003 dollars) Property Tax History $943 $1,052 $1,069 $4,550 $4,602 4,618 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 201020112012201320142015201620172018201920202021202220232024$400,000 Edina Home Property Tax History City tax Total tax How Does Edina Compare? City Tax Rate Tax $ on $700,000 Tax $ on $1M Plymouth 25.25%$ 1,894 $ 2,841 Maple Grove 27.36%$ 2,052 $ 3,078 Edina 28.50%$ 2,138 $ 3,207 Eden Prairie 28.51%$ 2,138 $ 3,207 Lakeville 30.09%$ 2,257 $ 3,385 Eagan 33.54%$ 2,516 $ 3,773 Minnetonka 34.32%$ 2,574 $ 3,861 Apple Valley 36.54%$ 2,741 $ 4,111 Burnsville 42.59%$ 3,194 $ 4,791 St. Louis Park 46.36%$ 3,477 $ 5,216 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 Edina $ 696,600 9.33%28.50%$ 2,126 Eden Prairie $ 536,400 5.30%28.51%$ 1,591 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 Enhanced Services or Functions •Police, Fire, & Public Health •Advanced Life Support (ALS) Ambulance Service •911 dispatch for Police, Fire & Medical (Edina & Richfield) •Southwest Metro Public Safety Training Facility (Joint Powers) •Public Health (Bloomington, Edina, & Richfield) •Rental Inspections •General Government •Assessing •Edina Liquor •Parks & Recreation •Braemar Golf Course & Dome •Braemar Arena & Field •Centennial Lakes •Edina Aquatic Center •Edinborough Park •Senior Center •Art Center Next Steps •Based on Council input, continue to refine 2024-2025 budget •Tax notices are mailed Nov. 11-24 •Budget discussion/update at Council work session on Nov. 21 •Public hearing for 2024 levy and budget on Dec. 5 •Final date to take action on 2024 budget is Dec. 19 •Nov. 21 Questions/Discussion •Nov. 21