HomeMy WebLinkAboutEditionEdina_June_20144801 W. 50th St.
Edina, MN 55424
952-927-8861
mail@EdinaMN.gov
www.EdinaMN.gov
CITY COUNCIL
Mayor Jim Hovland ............................612-874-8550
Council Member Joni Bennett .........952-927-0661
Council Member Mary Brindle .........952-941-7746
Council Member Josh Sprague ........612-501-0252
Council Member Ann Swenson ........952-927-7524
EXECUTIVE LEADERSHIP TEAM
City Manager
Scott Neal ..........................................952-826-0401
Assistant City Manager
Karen Kurt ..........................................952-826-0415
Communications & Technology
Services Director
Jennifer Bennerotte ..........................952-833-9520
Community Development Director
Cary Teague .......................................952-826-0460
Engineering Director
Chad Millner ......................................952-826-0318
Finance Director
John Wallin ........................................952-826-0410
Fire Chief
Tom Schmitz ......................................952-826-0332
Human Resources Director
Lisa Schaefer ......................................952-826-0416
Parks & Recreation Director
Ann Kattreh ........................................952-826-0430
Police Chief
Dave Nelson ......................................952-826-0467
Public Works Director
Brian Olson ........................................952-826-0311
In its most recent Quality of Life survey
completed in 2013, the City of Edina was again
rated highly by its residents. Ninety-nine percent
of those surveyed say their quality of life in Edina
is “excellent” or “good.”
“It’s important as a City to know what residents
think of what we are doing,” said City Manager
Scott Neal. “The Quality of Life survey produces
a wealth of information that we use to determine
our priorities and make our services, facilities
and infrastructure better.”
In the survey, more than 30 percent of
respondents couldn’t identify a serious issue
facing Edina. Additionally, 92 percent said they
think things in Edina are generally headed in
the right direction. Respondents also rated
the quality of City services, such as police and
fire protection, emergency medical services,
water and sewer services, parks and recreation,
and others, as “good” or “excellent” given the
property taxes they pay.
Eighty-four percent of residents also believe
they could have a say about the way things are
run in the community.
“This is valuable information for staff that helps
us make decisions and recommendations that
will best fit the needs and wants of residents,”
Neal said. “Conducting the survey is another
way for us to engage with a representative
sampling of residents.”
The Quality of Life survey is conducted by The
Morris-Leatherman Company, formerly Decision
Resources, and is done every-other year. The
next survey will take place in 2015.
Complete survey results can be found online
at www.EdinaMN.gov under “Resources.”
For more information, call the City’s
Communications & Technology Services
Department at 952-826-0359.
The City of Edina
Repeat attendance is
on the rise. And what’s
interesting is that lots
of different adults bring
kids here – maybe its
grandma and grandpa or
mom or the nanny. ... It’s
sort of inter-generational.
We are for everyone.
Patty McGrath, Edinborough Park
General Manager
City of Edina Directory
Residents Rate City
Highly in Survey
JUNE 2014
Volume 1, Issue 6
Edi tion:
Changes at Edinborough Reduce
Expenses and Draw Crowds
2013 Popular Annual Financial Report
The City of Edina reports financial year-end results in its Comprehensive Annual Financial Report (CAFR). This issue of Edition: Edina summarizes significant data from select funds in the 2013 CAFR
and the 2013 Annual Budget and is consistent with Generally Accepted Accounting Principles. For a complete review of the City’s financial position for 2013, consult the CAFR, available online at
www.EdinaMN.gov/Finance or at Edina City Hall, 4801 W. 50th St.
Since 2012, one of the state’s unique indoor public parks
has undergone significant renovations that resulted in
lower operating expenses and increased patronage.
Edinborough Park is an enclosed, one-acre park at 7700
York Ave. that features a swimming pool, a running track
and fitness equipment, multi-purpose activity area, 250-
seat amphitheater and Adventure Peak play structure.
Major changes took place at Edinborough Park in 2012
and 2013 to make the park more self-sustaining. Some
of the changes included renovating the pool facilities,
removing large trees from in the park that had outlived
their life expectancy and were costly to grow, and
renovating the lighting system to significantly improve
energy efficiency and reduce
energy costs. In addition, the
lower level was filled in to improve
handicap accessibility and to
provide a much larger, more
usable space for programming.
“Repeat attendance is on the
rise,” said Edinborough Park
General Manager Patty McGrath.
“And what’s interesting is that
lots of different adults bring kids
here – maybe its grandma and
grandpa or mom or the nanny. ...
It’s sort of inter-generational. We
are for everyone.”
The most significant changes
included renovating the “grotto”
area near Adventure Peak.
“There was an area that we called the grotto that was
very underutilized. It was not handicapped accessible.
We removed many of the older trees, which opened
up the inside of Edinborough a little bit more. It was
pretty, but people just didn’t go down to the area,” said
Assistant Parks & Recreation Director Susan Faus. “We
leveled it out and made it more accessible; we added
artwork. It’s a place where people can sit and enjoy the
trees and watch their children play.”
The grotto renovation project cost about $100,000 and
also included renovations to the waterfall and pond in
the same area. Faus explained that the water feature
was very expensive to maintain, so the renovations have
helped reduce operating costs. Edinborough also was
able to cut staffing costs with the removal of the older
trees and simpler landscaping needs.
McGrath has used these renovations to jump-start
new programming options at Edinborough that will be
held in the remodeled grotto area. “We want to get
some new programming options out there – maybe it’s
music or dance or some other kinds of things like that,”
she remarked. “Kids Zumba would be really kind of fun
to have.”
Another significant project was retrofitting the lighting
in the park to improve energy efficiency. Retrofitting
the lights was just completed and cost over $100,000 to
install. This change alone will save Edinborough about
$4,000 per month.
“We replaced the older, metal [1,000-watt] lights to a
more energy efficient LED. On our next utility invoices,
we’ll really start to see the savings in our energy costs,”
explained Faus.
With the help of a Utility Rebate from Xcel Energy for
about $60, 000, the final cost of the project worked
out to $40,583. McGrath explained that the rebate was
significantly larger than originally anticipated because
Edinborough qualified for additional discounts. It’s
anticipated that the project will pay for itself in about
nine months.
In addition to these expense-cutting projects,
Edinborough has seen increased revenue in the form
of new pool and track memberships. Renovations
enticed the Edina Swim Club to make Edinborough its
home pool. The group contributes $53,000 annually to
Edinborough, representing a new, significant boost to
the revenue stream.
“I would say that the overall
improvements to the facility have
definitely helped us because it has
allowed us to do multiple things
in addition to the pool, [including
using the track],” explained Edina
Swim Club Co-Head Coach Denise
Carlson. “Lots of cities and school
districts are closing pools, so for
Edina to be able to keep a pool open
is a victory for the community.”
After these renovations were
completed, Edinborough Park saw
an immediate and tangible change
to the operating expenses. For the
first time, Edinborough Park ended
the fiscal year in the black in 2013. Assistant Finance
Director Eric Roggeman doubts the facility could have
ever seen a profit without these upgrades.
“In 2012, Edinborough’s loss was $111,832; ... in 2013,
the preliminary operating gain for Edinborough was
$7,962. So, it is pretty clear that the changes are having
a positive financial impact. … If we can continue
this trend, my estimate is that we are saving at least
$250,000 per year,” he explained.
“Honestly, weather was ideal for an indoor play park
in 2013. It wasn’t great for the outdoor pool and it
wasn’t good for the golf course, but it was wonderful
for Edinborough Park. It’s always 70 and sunny!,”
added Faus.
For more information, visit www.EdinboroughPark.com
or contact McGrath at 952-833-9542 or send an email to
pmcgrath@EdinaMN.gov.
The renovated grotto area at Edinborough Park features an improved waterfall and will be used as an area for new youth
programming.
2012 2013
Edinborough Park Revenues and Expenses
Operating Revenue Operating Expense
1.15
1.2
1.25
1.3
1.35
1.4
$ 1.45
Millions
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JUNE 2014
2013 Popular Annual Financial Report
City Engages Residents on Budget, Capital Improvement Plan
Building Permit Revenue Continues to Grow
The City continues to refine its budgeting and community
engagement processes.
In 2011, the City implemented a two-year budget cycle
beginning with the 2012-2013 operating budget. The
objective was to alternate planning, focus and effort between
the operating budget and Capital Improvement Plan (CIP)
processes. During odd-numbered years, the City focuses on its operating budget.
In even-numbered years, work is done on the CIP. To keep things in check, both are
reviewed annually.
“This bi-annual budget process has been working well thus far,” said City Manager
Scott Neal. “It really allows staff to look more closely at the budget and the CIP
individually so we can provide the best service to Edina.”
Extra effort is dedicated to civic engagement. During the summer of 2013, the City
partnered with the Citizen’s League to host three workshops dubbed “Financing
the Future.” During the workshops, City staff asked participants to provide input
on important budgetary decisions by understanding some of the trends and issues
affecting the budget, setting priorities and informing the City Council’s decisions.
“Engagement and public feedback on the budget was important so we as staff know
we are focusing on what is important to residents,” said Assistant Finance Director
Eric Roggeman. “The same applies [this year] to the CIP process. We want to know if
we are hitting the mark.”
Communication and engagement is one of the City Council’s six strategic priorities
for 2014-2015. Since decisions at City Hall affect all residents, the Council and staff
want to hear residents’ opinions. In addition to holding a monthly discussion on the
City’s civic engagement website, www.SpeakUpEdina.org, the Finance Department
also hosted an online discussion to see what residents thought of the CIP.
“We wanted an open space where residents can help staff identify wants and
needs of things that need to be updated or replaced over the next five years,” said
Roggeman. “We could continue to look at things from an internal perspective, but
having that direct feedback from residents really helps us identify and prioritize what
should be done.
“There isn’t enough money to do all the projects requested. We want to know what’s
most important to Edina’s residents, which will help guide City staff and the City
Council when they make decisions about the CIP,” Roggeman continued.
Staff will prepare CIP requests in July and August, and a proposed CIP will be presented
to the City Council in September. After a draft of the CIP is completed later this year,
the Finance Department will again engage with residents on the Speak Up, Edina
website. Residents will have the opportunity to review the CIP and provide feedback.
The CIP will go before the City Council in November or December for approval.
For more information, contact Roggeman at 952-826-0417.
2013 was a record year for building permit revenue, with the City collecting more
than $4.12 million in licenses and building permit fees.
License and permit revenue is collected primarily from builders and developers
for residential and commercial building projects. However, it also includes
revenue from a variety of City-issued licenses, including liquor and restaurant
licenses. The previous record was $3.45 million, set in 2006.
The increase in licenses and building permits shows the trend for continued
redevelopment in most areas of Edina.
“Redevelopment is good for cities,” said Chief Building Official David Fisher. “It
helps keep property values healthy, adds to the tax base and strengthens our
community’s education system.”
Another source of revenue comes from single-family home demolitions. In 2013,
there were 103 single-family home demolitions. With 2013 also being a record
year for demolition permits, quality residential development remains a top
priority of the City. Last year, the City hired the first Residential Redevelopment
Coordinator, Cindy Larson, to manage teardown and rebuilds.
“Things have become more systematic,” said Larson, who now meets and
conducts a site tour with the person who would like to pull a demolition permit
before she’ll sign off on it. “We’ll go over the Construction Management Plan in
advance, too, so that they know our expectations.”
As of June 1, 2014, there have been 39 single-family home demolitions. Fisher
guesses that amount will be near 120 by year’s end.
For more information, contact the Building Inspections Division at 952-826-0372.
Low Property Taxes: A Product of Edina’s Success
In relation to its neighbors, Edina has low property
taxes – averaging $1,113 in 2013 for a $400,000 home –
less than half that of Hopkins and Richfield. These low
rates are a product of Edina’s past achievements, and
reflect the current state of the community. In short,
Edina is doing well, and low property taxes are a result
of its success.
“Property tax rates are important, and providing
quality services to Edina residents is also important.
Our approach is to focus our efforts through
prioritization and finding efficient ways to deliver the
services our residents value the most. It’s a continuous
effort,” said Assistant Finance Director Eric Roggeman.
In addition to appropriate actions from City
government, City Manager Scott Neal is quick to throw
credit to the City itself – namely its residents and past
leadership – whose successes have translated into
lower taxes.
“There are two parts to this. First, the City is able to
set a low tax rate because it has a strong tax base.
Edina has the fourth largest tax base in the State of
Minnesota. When you combine the size and strength of
our tax base, we are able to fund our city government
operations with a relatively modest tax rate,” he said.
“The more interesting answer, though, is to ask why
Edina has such a strong tax base in the first place.
Edina has many advantages in terms of community
wealth, great location, etc.” said Neal. “But I would
also say that Edina has been very fortunate to have a
history of City leaders who have been both wise and
prudent. Their decisions of 20, 40, 60 years ago are
playing out in the community today. Current residents
and taxpayers are enjoying the wisdom of those
decisions today.”
In 2013, Edina residents were polled for the City’s
biennial Quality of Life Survey. Although most were
pleased with the value they get for their property
tax dollar – 93 percent rating the value as “good” or
“excellent” – there seems to be a perception that
Edina has relatively high property tax rates; something
that is not supported by the data. About half thought
property taxes were about average in comparison to
neighboring communities. Another 40 percent rated
them as “somewhat high” or “very high.” The tax
numbers tell their own story.
City Assessor Bob Wilson said that these low rates
are nothing new; Edina has historically had low
property taxes.
In September, the Council will adopt a formal
resolution to set the 2015 preliminary levy and budget.
In December, the Council will hold a public hearing
on the 2015 operating budget and levy. Later in
December, the Council will adopt the final 2015 budget
and property tax levy.
For more information, contact the Finance Department,
952-826-0366.
0
500
1,000
1,500
2,000
2,500
$ 3,000
Property Tax Comparison
Estimated yearly tax on a $400,000 home.
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‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13
Licenses and Building Permit Revenue
Actual Budget
Millions
$4.1
$2.9
JUNE 2014
2013 Popular Annual Financial Report
your Neighborhood!
ORGANIZ
E
City Neighborhood Associations Foster Community
Two years ago, the City began a
process to identify neighborhoods
in the community. The following
year, the City Council approved a
Neighborhood Association Policy
and a map showing the boundaries of
45 distinct neighborhoods. And this
year, the City has four City-recognized
neighborhoods.
A few years ago, City-recognized
neighborhoods in Edina didn’t
exist. Today, Concord, Countryside,
Morningside and Strachauer Park
neighborhoods have all completed the
recognition process. The City’s goal is
to recognize 10 neighborhoods by the
end of 2015.
The initiative has come so far because
of excitement generated by many
residents. Hope Melton is a resident
of Concord Neighborhood and
was a member of the “Name Your
Neighborhood” Neighborhood
Identification Steering Committee
that helped develop neighborhood
boundaries and names. She has been
a strong advocate for neighborhoods
to organize and go through the City’s
recognition process.
“It gives neighborhoods resonance
and a chance to address their concerns
about their neighborhood and issues
that impact their neighborhood,” she
explained. “When you get together
with a group of like-minded people,
you have a much greater impact in
addressing those concerns than you
do as a single individual. It’s as simple
as that.”
The process gives the City another
way to connect with residents. The
City will communicate with City-
recognized neighborhoods when
significant neighborhood projects are
being discussed or proposed, when
public hearings are held about issues
that could impact a neighborhood, if
a developer requests a neighborhood
meeting for the purpose of reviewing
a sketch plan or when the City plans
to organize a neighborhood group for
resident input.
“They get to be on the front end
of projects and initiatives that are
happening,” explained Neighborhood
Project Coordinator MJ Lamon. “If we’re
looking for feedback on a plan that is
happening in a neighborhood, we ask if
they have some players who might want
to get involved.”
“A piece of this [initiative] is about the
… communication between the City
and its residents, but there is this other
piece where the residents are just
empowering themselves to take action
on something of local interest,” said
Assistant City Manager Karen Kurt.
In addition to the practicality of
increased communication among the
City and residents, neighborhoods that
are more connected are generally safer
and residents feel more protected.
Lamon referenced a study by the
Pew Research Center that found that
29 percent of Americans only know
a few of their neighbors and, more
alarmingly, 28 percent of people don’t
know any of their neighbors at all. These
statistics drive Lamon in her efforts to
increase the number of City-recognized
Neighborhood Associations. She
believes that more connected
neighborhoods will lead to less crime
and more communication.
Melton agrees. “There is a lot of
research about something called ‘social
capital,’ which [includes] relationships
of trust and reciprocity. And at the
neighborhood [level, that means] that
people tend to feel safer and more
secure,” she said.
The City looks forward to more
neighborhoods becoming City-
recognized. “I think it will hit this
critical point and it’s going to gather
momentum and the power will multiply
as more groups become recognized,”
explained Kurt. “The more groups that
we have organized, the easier it is for us
as we approach a problem in a specific
geographic area to be able to quickly
connect and get the word out so that
the right people come to the table.”
For more information about establishing
your neighborhood as a City of Edina-
recognized Neighborhood Association,
contact Lamon at 952-826-0360 or
neighborhoods@EdinaMN.gov.
For additional details, please visit
www.EdinaMN.gov/Neighborhoods.
Four neighborhoods have completed the City-recognition process. They include Concord,
Countryside, Morningside and Strachauer Park.
City Launches
e-Utility Billing
A growing number of the City’s utility
customers are paying bills and managing their
accounts online.
In response to popular demand from Edina
residents, the City earlier this year launched
e-Utility Billing, a free online system for paying
utility bills. City utility bills, sent quarterly,
include the cost of water, sewer, storm drain
and recycling for most properties in Edina.
So far, response has been positive. First
impressions portray the new site as very user-
friendly. The City is confident that people will
find the online payment system hassle-free,
convenient and informative. Convenience is
an overall theme on the payment site, which is
accessible at www.EdinaMN.gov/Finance. You
can access your account and pay your bill at any
time, see your account history and view your
past water usage.
Residents can make a one-time payment
without registering, or they can register to
receive eBills. Once a customer registers, eBills
will replace paper statements from that point
on. Registration also allows users to view usage
history information. Another available option
on the site is automatic withdrawal via credit
card or bank account, which adds another level
of convenience for Edina’s residents.
Users can quickly cancel e-Utility Billing, if they
so choose. All existing payment methods will
remain in place.
Edina is part of Local Government
Information Systems (LOGIS), a joint powers,
intergovernmental consortium of Minnesota
local government units. The online system for
paying utility bills is a LOGIS solution. A number
of nearby cities in the consortium are currently
using the system, including Eden Prairie, Maple
Grove and St. Louis Park. Feedback from
residents in those cities has been positive,
as well.
Of all the metro area cities using this
online service, Eden Prairie has the highest
percentage of enrollment at 19 percent.
Roggeman estimates that Edina will have 20
percent of its accounts enrolled in online utility
billing within two years.
For more information on e-Utility Billing,
contact Dona Fowler or Lori Lohmann in Utilities
at 952-826-0373.
Miller Brings Business and Savings to
Braemar Arena
Since Susie Miller became
Braemar Arena’s General Manager
in the fall of 2011, the facility has
seen vast improvements. The
improvements not only save the
facility money, but make Braemar
Arena a nicer place to be.
“Susie has made Braemar Arena
a more welcoming, cleaner and
friendlier place to be. She makes
parents and athletes feel like they’re at home,” said
Parks & Recreation Director Ann Kattreh. “She’s
always thinking, too, about what she can do to make
the facility better, while saving money.”
Braemar Arena, 7501 Ikola Way, features three indoor,
regulation-size ice sheets. Braemar is available for
open skating, group rental, adult and youth hockey
and figure skating programs. The facility also offers
group skating lessons for ages 4 through adult and
is home to the Braemar-City of Lakes Figure Skating
Club, the Edina Hornets high school hockey teams
and the Edina Hockey Association.
In 2012, Miller worked alongside numerous
organizations to bring to life the Hornets Nest, a
two-story addition to Braemar Arena. The project
included brand new locker rooms and associated
space for the Edina High School boys’ and girls’
hockey teams as well as General Sports, a retail store;
and Velocity, a dry-land training facility. However, it
was donations that really made the project possible –
the $4 million project was contingent on the “Drive
for the Hive” advocates raising nearly $800,000 in
private contributions.
Miller believes the addition and its tenants –
especially Velocity – are partially responsible for the
increase in ice rentals the facility has seen. In 2011,
5,956 hours of ice were
sold. In 2013, 8,150 hours
were sold.
Kattreh credits Miller for
increasing the amount of
non-prime ice rentals to
nearly the same amount
of prime ice rentals. Miller has achieved that
by soliciting business and hosting numerous
tournaments, including 18 in 2013, double the
number hosted in 2011.
Miller has also cut costs at the Arena. In 2012, she
brought operations of the concession stand in house.
The increase in tournaments brought an increase of
$35,000 in concession stand profits.
In addition, the time it takes to create a new sheet
of ice has decreased from 15 minutes to 10 minutes.
While it may seem like a small change, Miller said it
added up to nearly $40,000 worth of available ice
time that Braemar Arena can now rent.
“To implement the change in the ice-making time,
we not only had to train the staff, but the customers,
too, because they had to get off of the ice faster,” she
said. “But we all knew doing so could save the facility
money and maximize our resources.”
“Susie has really made an example of how to run
an ice arena, not only in the state, but in the country,
because of her hard work and dedication,” said
Kattreh. “She understands that we have limited
financial resources and we want to be the best
stewards of those resources for our residents
and families.”
For more information visit www.BreamarArena.com.
Susie Miller,
Braemar Arena
General Manager
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The Hornets Nest includes new locker rooms and associated space for the Edina High School boys’ and girls’ hockey teams.
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JUNE 2014
2013 Popular Annual Financial Report
PACS Fund Provides Non-
Motorized Transit Options
for Residents
A new fund is providing adequate,
quality and safe resources for
those choosing non-motorized
transportation.
The Pedestrian & Cyclist Safety
(PACS) Fund was created by
the City Council in 2012 to
pay for projects that make the
community more walkable and
bike friendly. The revenue from
the PACS Fund is used exclusively
for improvements to the City’s
non-motorized transportation
network, including sidewalks,
trails and other facilities for
pedestrians and bicyclists.
Revenue for the fund is generated
by a franchise fee of $1.45 per
month for residential customers
of Xcel Energy and CenterPoint
Energy. There are higher franchise
fees for commercial customers of
both utilities that range from $2.90
to $40 per month, depending on
the size of the customer’s meter.
“Projects completed last year
were at the top of a list that had
been needed to be done for quite
some time,” said Transportation
Planner Mark Nolan.
Projects completed in 2013
include over 3,000 feet of new
sidewalk, feasibility studies
for future projects, bike lane
re-striping and new lanes to
accommodate pedestrians. Even
with all of the work that was done
last year, Nolan says there were
leftover funds that the City can
now carry into projects for 2014.
This year, the Engineering
Department plans to complete
the following projects with money
from the PACS Fund:
• 6,400 feet of new sidewalks
associated with neighborhood
street reconstruction
projects in the Birchcrest B,
Morningside B and Strachauer
B neighborhoods.
• Up to 1,500 feet of new
sidewalk at the northeast
corner of Southdale Center.
Hennepin County will pay
25 percent of the cost of
this project.
• 1,200 feet of new sidewalk near
Highlands Elementary School.
• 710 feet of replacement
sidewalk on the corner of
West 70th Street and Xerxes
Avenue.
• Updated green bike lane
with improved lane striping
at Metro Boulevard and West
70th Street.
• Three new enhanced
pedestrian crossings with push-
button flashing beacons on
66th Street near Rosland Park.
• Replacement of the mid-block
crossing between The Galleria
and Southdale Center with
enhanced crossings with push-
button activation flashing
beacons.
• 50th & France parking ramp
improvements, including
striping and new walk zones.
The budget for projects to be
completed in 2014 is $1.3 million.
Without the PACS Fund, Nolan
says, “it’s safe to assume not all of
these projects could be completed
in one year, if at all. Residents
could petition for a sidewalk, but
their properties would be assessed
for those costs.”
By finding innovative ways to
finance projects that lead to more
transportation options, “Edina
is becoming a national leader, “
Nolan noted. “In this way, Edina
can serve as a model for suburban
areas that want to provide more
options for non-motorized
transportation.”
The City’s vision for Living
Streets is to provide the
public with accessible and
comfortable options regardless
of transportation type. The PACS
Fund was the jumpstart Edina
needed to support this vision.
It provides a way for the City to
reach its goals for non-motorized
transportation without requiring
residents and business to “pay up.”
For more information on the PACS
Fund or non-motorized transport
structure, contact the Engineering
Department at 952-826-0371
or visit www.EdinaMN.gov/
Engineering.
Utility Rates: How Does
Edina Compare?
The season of lawn irrigation and
construction is in full swing, but you may
not have expected these to be some of
the factors driving Edina’s utility rates.
Each November, the City Council
determines the upcoming year’s utility
rates. Decisions are based on utility
infrastructure projects included in the
annual Capital Improvement Plan (CIP)
and a utility rate study prepared by
financial advisors Elhers & Associates at
the direction of the Finance Department.
Edina was built in a fairly short amount
of time decades ago and much of the
underground infrastructure is reaching
the end of its lifespan and now needs
replacing. The City pays for the new water
and sewer lines with money collected from
its utilities customers.
The City of Edina’s approximately 15,000
utility customers generated approximately
$18 million in 2013 from all utilities –
water, sewer, storm sewer and recycling.
The five-year CIP includes $42 million in
infrastructure projects, to be completed
between 2013 and 2017, averaging $8.4
million per year.
Due to the amount of City reconstruction,
residential usage and new State
regulations, since 2007 utility rates have
been increasing at a rate of about 5 to
6 percent annually. Surrounding cities,
similar to Edina in age and size, can be
expected to have similar rate increases,
but it all depends on the amount of
reconstruction needed.
Other aspects need to be taken into
consideration, such as the specific
services the given city is providing. For
example, Eden Prairie softens its water,
Edina does not.
Those in the Morningside Neighborhood
have a particularly unique situation.
Their water is purchased by Edina from
Minneapolis, so costs reflect the services
that Minneapolis provides for its water.
Surrounding cities’ rates are taken into
consideration in conjunction with other
factors, but Edina’s utility rates are based
off of the needs of Edina, not off of other
cities.
Edina adopted a tiered water billing
model in 2007, meaning that those
consuming more utility-related resources –
those watering their lawn more frequently,
for example – pay a higher rate. The cost
of utilities needs to be distributed evenly
among residents and business because it
helps pay for the infrastructure that keeps
the City running smoothly.
“The goal is really two parts. Fairness –
the question of who pays for what – and
to enable the improvements by paying
for them in a financially responsible way,”
noted Assistant Finance Director Eric
Roggeman.
Over the last two years, the City
completed a water meter replacement
project. For residents and business
owners in the city, this means more
accuracy. For the City, this means higher
revenues. With these new meters, the City
knows that the meters are running at 100
percent. These meters can be queried to
get an hour-by-hour usage to better serve
customers wanting to know more about
their water usage.
For more information, contact the Finance
Department at 952-826-0366.
Water Sewer Storm Water
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Utility Rates Comparison
Rates based on the average quarterly residential consumption of 27,000 gallons of water,
13,500 gallons of sewer, in addition to a flat storm water fee.
Water Sewer Storm Water
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Utility Rates Comparison
Rates based on the average quarterly residential consumption of 27,000 gallons of water,
13,500 gallons of sewer, in addition to a flat storm water fee.
Recommending wines and other product, stocking
shelves and ringing up customers at checkout are
all part of the job at Edina Liquor. This past year,
though, staff began working harder on another of their
responsibilities: educating customers about how Edina
Liquor profits are used.
Together, the City of Edina’s three liquor stores
generate more than $1 million annually in profit,
offsetting property taxes and subsidizing recreational
facilities.
“I hope people know this. … Once I learned that profits
go back to the public, not into the pocket of an owner
somewhere, I didn’t shop anywhere else,” said Alex
Christianson, who is especially appreciative of Edina
Liquor profits used to support Braemar Arena where
her family spends a lot of their leisure time. In 2013,
$160,000 of Edina Liquor profits was transferred to the
Braemar Arena coffers.
Longtime Edina resident, business owner and Braemar
Men’s Club member Jim Platt agrees. Whenever his
position as chair of the Braemar Men’s Club affords an
opportunity, Platt likes to remind fellow golfers about
the unique funding model that makes Braemar such
an attractive place to play. Golf revenue is only one
piece of the equation. In 2013, $100,000 of Edina Liquor
profits was used to subsidize golf course operations.
“Proceeds from Edina Liquor … roll into Braemar
and help keep things looking polished,” he said.
“This funding is also very helpful when there are cash
flow problems.”
Edina Liquor had a very strong 2013, grossing more
than $13.7 million, an increase of 3.6 percent over
2012. Customer count was up more than 8,800, or 1.77
percent, compared to 2012.
Year-to-date sales for 2014 are also up. Sales for the
first quarter of the year totaled $2,964,789. Sales in the
same period of 2013 totaled $2,938,636.
After conducting mystery shops and a comprehensive
customer survey in 2013 to better understand
consumer perceptions, City staff learned that the Edina
Liquor brand was in need of a consistent “voice” and
messaging, both in-store and outside of the store.
Many customers did not understand that the liquor
stores are owned by the City and that profits are used
to support City recreation facilities, in addition to the
City’s operating and capital budgets.
“In order to stay competitive, Edina Liquor was in
need of a ‘brand refresh,’” said Liquor Operations
Director Steve Grausam. “The goal was to differentiate
Edina Liquor from other non-municipal liquor stores
in surrounding communities by creating a ‘brand
position,’ resulting in increased trial, loyalty and sales.”
Edina Liquor embraced its true point-of-differentiation
– being owned by city government – and leveraged
the fact that profits from all purchases go back to the
City of Edina, making it a better place to live, work
and shop. The tagline and logo, “Edina Liquor: Where
profits get poured back into the community,” was
created to reinforce and communicate the stores’
place in the community. This idea was supported with
additional messaging about how purchases help keep
roads smooth, parks clean and taxes low in Edina. The
branding campaign has carried through with print and
online advertising and new in-store signage.
“Profits of Edina Liquor provide significant tax relief to
residents and commercial property owners in Edina,”
Grausam said. “It is important that the three stores
remain competitive with nearby stores. We believe our
branding and marketing work in the past year will help
Edina Liquor’s position in the market.”
Edina Liquor stores are located at 3943 W. 50th St.,
5013 Vernon Ave. and 6755 York Ave. S. For more
information, visit www.EdinaLiquor.com.
Edina Liquor Pours Back Into the Community
Grandview
Southdale
50th & France
EdinaLiquor.com
WHERE PROFITS GET
POURED BACK INTO
THE COMMUNITY
The goal is really two
parts. Fairness – the
question of who pays for
what – and to enable the
improvements by paying
for them in a financially
responsible way.
Eric Roggeman, Assistant Finance Director