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Home My WebLink About2025-02-04 Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, February 4, 2025 5:30 PM Accessibility Support: 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 amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Meeting Topics 3.1. Budget Work Session 4. Adjournment Page 1 of 35 d ITEM REPORT Date: February 4, 2025 Item Activity: Information Meeting: City Council Agenda Number: 3.1 Prepared By: Scott Neal, City Manager Item Type: Other Department: Finance Item Title: Budget Work Session Action Requested: None. Information only. Information/Background: The purpose of the February work sessions is to kick off the budget process and provide an overview of all the services the City provides, where the Council has policy discretion, and the cost drivers. The presentations are intended to serve as a foundation for further discussion at the retreat in March. Due to the volume of content to cover in a limited amount of time, staff has been given some time constraints. We are asking the Council to hold off on discussions about the service priorities until the retreat, but clarifying questions to enhance understanding are welcome. After the presentations, individual Council members will be asked to submit up to five service areas they would like to prioritize learning more about, with the potential goal of making changes to the service or its level. Staff will then compile all individual Council feedback and review it to make a recommendation for up to five areas to explore further over the next year or two (timeline will depend on scale and available time). Staff will present the recommendations for discussion and review at the retreat. Staff is also including the proposed budget process timeline for 2026-2027 budget. Resources/Financial Impacts: This is essential for the development of the 2026 - 2027 biennial budget and city work plans. Relationship to City Policies: This is essential for the development of the 2026 - 2027 biennial budget and city work plans. Supporting Documentation: 1. 2026-2027 Budget Tentative Timeline 2. Budget Work Session Presentation 2-2025 Page 2 of 35 Timeline - Tentative Date Dec I 7th Februar y 4th & 6th March 15th May 6th August 19th September 2nd September 16th Dec. 2nd I Dec. 16th January 2025 The CITY of EDINA Event Action Council Approved 2025 Levy and Budget Council Work Session Council Work Session (Services Overview by Dept.) Discussion & Goal Setting Council Retreat Council Work Session Review CIP for 2026/27 26/27 Budget Presented Council Work Session 26/27 Budget Discussion Council Work Session Preliminary Levy Adoption Council Meeting Council Work session Public hearing and adopt final 2026/27 Levy Council Meeting Council Meeting Adopt final 2026/27 Levy Finance Deadline Publish detail budget book to website Page 3 of 35 2026-2027 Budget February 4 & 6 Work Sessions Page 4 of 35 The mission of the City of Edina is to provide effective and valued services, maintain a sound public infrastructure, offer premier public facilities, and guide the development and redevelopment of lands, all in a manner that sustains and improves the high quality of life enjoyed by residents and businesses. The vision for the City of Edina is to be the preeminent place for living, learning, raising families, and doing business. This vision is distinguished by a livable environment, effective and valued city services, a sound public infrastructure, a balance of land uses, and innovation. Page 5 of 35 The Budget is the largest reflection of an organization’s priorities. The Budget serves as the foundation of operationalizing the communities’ goals into actionable plans. Page 6 of 35 2026/27 Budget Process • Policy Decision Discussions • External Service Level Discussions Council • Efficiency Opportunities • Minimal Service Impacts • Internal Service optimization City Management 2026/27 Budget Page 7 of 35 Purpose of February Work Sessions •Intention is to inform Council on policy level information regarding services by department. •Tight schedule- monitoring time. Significant amount of content to get through. Goal is to wait on discussion about service priorities until March Retreat, but instead to ask questions to understand/clarification. •Numbers are from 2025 adopted budget (2026-27 numbers won’t be available until late summer). •Focus is on levy funded areas (operating and capital). Key Takeaways: Better understanding of services, policy discretion and cost drivers. Grounding for March discussions. Page 8 of 35 Operations vs. Policy What vs. How What How Page 9 of 35 Complex and interconnected organization •100+ lines of service •Further review and discussion to truly understand impact will be required. •On-going. Work in progress (we will make mistakes). Need focus, time and flexibility. Page 10 of 35 EdinaMN.gov Review of 2025 Budget and Levies Page 11 of 35 Tentative Timeline ActionEventDate Approved 2025 Levy and BudgetCouncilDec 17th Council Work Session (Services Overview by Dept.) Council Work SessionFebruary 4th & 6th Council RetreatDiscussion & Goal SettingMarch 15th Review CIP for 2026/27Council Work SessionMay 6th Council Work Session26/27 Budget PresentedAugust 19th Council Work Session26/27 Budget DiscussionSeptember 2nd Council MeetingPreliminary Levy AdoptionSeptember 16th Public hearing and adopt final 2026/27 LevyCouncil Work session Council Meeting Dec. 2nd Adopt final 2026/27 LevyCouncil MeetingDec. 16th Publish detail budget book to websiteFinance DeadlineJanuary 2025 Page 12 of 35 Behind the Scenes (tentative) Action Item(s)Event TypeDate Prep for February WS Preview Budget Kick-off Presentation to Council Present Budget & WP Staff Guide ELT Meeting1/2-1/29 Salary & Benefits Projections UpdatedInternal2/1-2/28 Council WS Budget Preview Review proposed timeline Review Department Services Council Work session2/4 Review Department Services Special Meeting2/6 Draft Budget WP Items DiscussionELT Meeting2/12 Debt Service Discussion Equipment Levy Explanation (Technology, Facility Needs, Vehicle Purchases) Review 26-27 Projections Budget Work Plan Council Retreat3/15/2025 Staff Budget & Workplan TrainingInternal3/19 Depts Develop Budget & WorkplanInternal4/1-5/15 Council Budget Review Review Updated CIP for 2026/27 Follow up on projections from retreat related to draft WP Council Work session5/6 Budget Review, Edits & Clean UpInternal5/15-6/1 Work Plan & Budget PresentationsELT Retreat (Full Day)5/28 Budget Review & EditsInternal6/1-7/20 Budget PreviewELT Meeting7/23 Budget Final Edits & Clean UpInternal7/30 CM Budget Proposal Shared with CouncilCouncil Work session8/19 Council Budget Review, Comments & EditsCouncil Work session9/2 Council Adopts Preliminary LevyCouncil Meeting9/16 Truth in TaxationCouncil Meeting12/2 Council Adopts Final BudgetCouncil Meeting12/16 Page 13 of 35 2025 All Funds 35% 33% 11% 4% 3% 3% 2% 2%2%2% 1% 1%1%0% Sources Property Tax Levy (34.8%) Operating Revenues (33.1%) Charges for Services (10.9%) Licenses & Permits (3.4%) Local Option Sales Tax (3.2%) Transfers and Contributions (2.8%) Franchise Fees & Other Taxes (2.4%) Other Revenue (2.3%) Special Assessments (2.2%) Intergovernmental (1.6%) Tax Increments (1.4%) Investment Income (1.1%) Other Financing Sources (0.6%) Fines and Forfeitures (0.2%) Page 14 of 35 2025 General Fund 73% 9% 9% 4%2%2% 1% SOURCES Property Tax Levy (73%) Charges for Services (9%) Licenses & Permits (9%) Intergovernmental (4%) Other (2%) Franchise Fees & Other taxes (2%) Fines & Forfeitures (1%) Page 15 of 35 Breakdown by Levy Area 80% 10% 9% 1% LEVY BREAKDOWN General Fund Levy Construction Levy Debt Service Levy HRA Levy Page 16 of 35 2025 General Fund 28% 16% 13% 13% 9% 4% 4% 4% 3%3% 2%1% USES BY FUNCTION Police (28%) Fire (15%) Parks & Recreation (13%) Public Works (13%) Engineering (9%) I.T. (4%) Development (4%) Administration - Supporting (4%) Human Resource Management (3%) Finance (3%) Administration - Operating (2%) Communications (1%) •Only includes portions funded with levy (non-franchise fee, non-utilities etc). •Does not include equipment, capital or debt service. Page 17 of 35 Services by Department Presentation February 2025 Data based off 2025 budget Page 18 of 35 Presentation Schedule Start TimeFebruary 4th 5:30 pmBudget Process Kick off 5:45 pmPolice - 30 minutes (28%) 6:15 pmFire - 40 minutes (15%) February 6th 5:00 pmParks and Recreation - 60 minutes (13%) 6:00 pmPublic Works - 30 minutes (13%) 6:30 pmEngineering - 30 minutes (9%) 6:50 pmDevelopment - 20 minutes (4%) Internal Services 7:00 pmAdministration (6%) 7:10 pmIT - (4%) 7:20 pmHuman Resources - (3%) 7:40 pmFinance - (3%) 7:50 pmCommunications - (1%) 8:00 pmWrap up & Next Steps Page 19 of 35 % of All Funds Exp% of GF ExpDivisionDepartmentFunction 3.23%5.79%Police AdministrationPoliceOperating 0.93%3.39%DispatchPoliceOperating 3.98%16.04%PatrolPoliceOperating 0.76%3.00%InvestigationsPoliceOperating Police Department: 28% Additional services - School Liaisons - Drug Task Force - Neighborhood Engagement - Police Records - 911 Dispatch 86 FT Page 20 of 35 Page 21 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary Enforcement of ordinance, statute, and lawStatutory, best practice, industry standard RequiredLaw Enforcement 911 response to all hazards, emergencies, accidents, and disasters Statutory, best practice, industry standard RequiredEmergency Response Cost offset by partnership with Richfield Police and Fire Statutory, best practice, industry standard Required911 Dispatch for Police, Fire, EMS, Public Works Significant community demand for traffic safetyBest practice, past practice, industry standard Quality of LifeTraffic Safety and Enforcement Alternative Response Team and Embedded Social Worker programs Best practice, past practiceQuality of LifeMental Health Response and Social Work Work in partnership with Fire to provide rapid first response to medical emergencies Statutory, best practice, industry standard RequiredEmergency Medical Services Leveraging intelligence led policing to reduce and interrupt crime patterns Best practice, past practice, industry standard Quality of LifeCrime Prevention and Analysis Domestic and wild animal management programs and enforcement Best practice, past practice, industry standard Quality of LifeAnimal Control Page 22 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary Reimbursed for service by Edina SchoolsBest practice, past practice, industry standard Quality of LifeSchool Resource Officers Investigation and prosecution of serious crimes Statutory, best practice, industry standard RequiredCriminal Investigations Proactive efforts with Community Engagement Officer and Joint Community Police Partnership Liaison Best practice, past practice, industry standard Quality of LifeCommunity Engagement Numerous major City and community events Best practice, past practice, industry standard Quality of LifeSpecial Events Planning and Security Significant and complex statutory requirements Statutory, best practice, industry standard RequiredRecords Management, Data Practices, and CJIS Compliance Assure integrity of criminal cases and manage significant liability for the City Statutory, best practice, industry standard RequiredProperty and Evidence Management Maintenance of licenses, certifications, and proficiency Statutory, best practice,industry standard RequiredStaff Training and Certification Page 23 of 35 Cost Drivers & Other Important Information •Significant Change Over the Past Five Years •Additional statutory/regulatory requirements •Increased costs for training, certification, and equipment •Public perception and expectations •Significant community growth •Increase in mental health and crisis response •Hiring and Retaining the Best People •Our biggest challenge today, have not been fully staffed since 2020 •Staffing targets for 2024-25 not yet realized •9-12 month process from job posting to solo patrol •Focusing efforts on Cadet program, will need to develop future talent in-house •Staffing necessary to provide past service levels, accommodate community growth, and assure retention of existing staff Page 24 of 35 Cost Drivers & Other Important Information •Adapting to Change •24-hour Sergeant coverage •Mental health services including Embedded Social Worker and Alternative Response Team •Community Engagement and Joint Community Police Partnership •Cadet Officer Program •Fiscal Responsibility •Cost sharing partnerships with Edina Public Schools, Southdale Center, City of Richfield, and Hennepin County •Extending the life cycle of equipment and vehicles where possible •Utilizing State and Federal grant funding including Auto Theft and ICPOET •Leveraging Edina Crime Prevention Fund for special projects and opportunities Page 25 of 35 Fire Department:15% % of All Funds Exp % of GF ExpDivisionDepartmentFunction 4.99%14.12%FireFireOperating 1.50%0.00%Building Inspections FireOperating 0.72%1.32%Public HealthFireOperating Additional services - Fire Response - Ambulance Service (ALS) - MN Taskforce One - Fire Prevention (Fire Marshal) - Training Facility - Organics Recycling - Rental Inspections - Residential Redevelopment 71 FT Page 26 of 35 Fire Department Fire Chief Building Division Fire Operations Fire Prevention Fire Training and EMS Public Health Training Facility Page 27 of 35 Fire Department- More Than Just a Fire Department •Fire Department Full Time Staff •Building Division -16 •Fire Department –47 •24 HR -36 •Fire Inspectors -3 •Administrative Chief -5 •Administrative Assistant-2 •Minnesota Task Force One Administrator -1 •Public Health -7 •South Metro Public Safety Training Facility -1 Page 28 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary No State Statute/Federal Mandates that drive service. Local policy decision is required. Past PracticeQuality of LifeFire Department Emergency Response No State Statute/Federal Mandates that drive service. Local policy decision is required. Past practiceQuality of LifeFire Department Ambulance Response Community Risk ReductionIndustry StandardQuality of LifeFire Prevention and Inspections Continuing Education and risk reductionRisk ManagementStatutoryFire Department Training and Safety JPA for State of MN Urban Search and Rescue Team Council PolicyQuality of LifeMinnesota Task Force One Host Agency Supervise and oversee Minnesota Task Force One Administrator position and fiscal agency. Internal PolicyQuality of LifeFiscal Agency- Minnesota Task Force One Supervise and oversee Staff assigned to the SMPSTF. Internal PolicyQuality of LifeFiscal Agency – Training Facility Emergency manager for the City of Edina.Best PracticeQuality of LifeEmergency Management Page 29 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary The City of Edina's status is a Community Health Board (CHB) M.S. 145A. The statutory responsibilities listed below are required of CHB's and we must meet those responsibilities. Council PolicyStatutoryCommunity Health Board MN Statute 145A, which includes Environmental Public Health Activities like food, pools, and lodging licensing and inspection. Funded by City license fees. Best PracticeStatutoryFood, Pools, Lodging Licensing and Inspection MN Statute 145A, which includes Environmental Public Health Activities like public health nuisance investigation and enforcement. Best PracticeStatutoryPublic Health Nuisance Investigation & Enforcement MN Statute 145A, which includes local public health activities. Funding: LPH Grant and Local Match and general budget. Best PracticeStatutoryLocal Public Health Services MN Statute 145A, which includes foundational public health services grant duties. Completely funded by FPHR Grant which pays for contracted services with Bloomington Public Health. Best PracticeStatutoryFoundational Public Health Services - Grant Page 30 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary MN Statute 145A, which includes Public Health Emergency Preparedness. Completely funded by PHEP Grant Best PracticeStatutoryPublic Health Emergency Preparedness - Grant MN Statute 145A, which includes Response Sustainability Grant Services. Completely funded by RSG grant which pays for contracted services with Bloomington Public Health. Best PracticeStatutoryResponse Sustainability Grant Services MN Statute 145A, which includes COVID 19 response. Response activities have been funded through various grants from State and Federal sources which pay for contracted services with Bloomington Public Health. Best PracticeStatutoryCOVID 19 Response Services/Vaccine Implementation MN Statute 145A, which includes CDC Infrastructure grant requirements. Funded completely by CDC Infrastructure Grant which pays for contracted services with Bloomington Public Health. Best PracticeStatutoryCDC Infrastructure Grant Services Page 31 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary Inspections to ensure air quality/safety in parking structures attached to housing units. Funded completely by license fees. Past Practice, Risk ManagementQOLMulti-Unit Parking Garage Licensing & Inspection Property Maintenance/Code Enforcement is a standard municipal practice for maintaining quality of life and property. No funding source other than general budget funds. Council Policy, Industry Standard QOLProperty Maintenance Code Enforcement Funded by City license fees.Best PracticeStatutoryBody Art Licensing and Inspection Required services as detailed in settlement funding. Industry StandardStatutoryOpioid Settlement Funding Services Municipal licensing requiredIndustry StandardStatutoryTobacco Licensing Required licensing and inspection as detailed in new regulations Industry Standard, Best PracticeStatutoryCannabis/Low Dose Hemp Edible Registration and Inspection Page 32 of 35 NotesDecision Discretion Level (best practice, past practice, internal policy, Council policy, industry standard or for risk management) Statutory or Quality of Life (includes health/safety) Service Summary Required of Edina Community Health Board - meet grant duties through agreement with Bloomington Public Health. Best PracticeStatutoryCannabis and Substance Use Prevention Grant County Ordinance 13 requirements must be met -Verify County Requirement, Council Policy QOLResidential Recycling Program Management County Ordinance 13 requirements must be met County Requirement, Council Policy QOLResidential Organics Recycling Program Management Delegated Municipal Inspections. Locally administered and conducted. Best PracticeStatutoryBuilding Inspections Coordinate residential redevelopment between residents, contractors, and City staff. Best practiceQuality of LifeResidential Redevelopment Coordinator Page 33 of 35 Cost Drivers & Other Important Information •Fire Department Service Response Policy •Fire Department Staffing Study •Fire Department Station Study •Hiring – candidate pool reductions, experience reduction •Capital Expenses Escalation (Apparatus, Station, Equipment) •Value alignment •Quality of Life vs Overall Service expectation •Environmental Impacts/Climate Change •Drivers of Public Health initiatives •Community Engagement •Community Risk Reduction •Operational, customer, Staffing or Infrastructure Impacts •Increased volume, Aging populations, Development, Reimbursement Page 34 of 35 2025 Fire Department Recommendations •Key Recommendations •Evaluate and create a Fire Department Response Policy •Evaluate and review Community Health Board Impacts and fees for service Page 35 of 35