HomeMy WebLinkAboutEditionEdinaJuly2018City Keeps Taxes Low For Property Owners
Edina continues to maintain low municipal property taxes, with a current average of $1,127 per
year for a $400,000 home. Put in context, this is less than half the municipal property taxes for a
home in Richfield or Hopkins of equal value.
Property values within the city is one of the most important factors in preserving City property
taxes at bedrock levels as well as thoughtful planning by the City. Both ensure municipal property
taxes don’t needlessly rise.
“The strong tax base in Edina continues to grow because of the appreciation in existing property
values and the new construction,” said City Assessor Bob Wilson.
However, there’s a common misconception among residents that taxes in Edina are much
higher than surrounding communities. According to the City’s biennial Quality of Life Survey
administered in 2017, 58 percent of residents responded they feel property taxes are “very” or
“somewhat” high compared with neighboring cities.
“Increasing property values continues to be the primary reason why Edina’s taxes are the lowest
compared to our neighboring communities,” said Finance Director Don Uram. “Redevelopment
within the City has contributed to this increase giving Edina the fourth largest tax base in the
state. The City Council’s and staff’s commitment to prudent fiscal management and continued
long-term financial planning is also as important.”
The only other cities with larger tax bases in the state are Minneapolis, St. Paul and Bloomington.
Residents also pay property taxes to Hennepin County, their local school district and watershed
district.
For more information, contact Uram at 952-826-0373.
Edition: Edina
JULY 2018
Volume 5, Issue 7
4801 W. 50th St. Edina, MN 55424 | 952-927-8861 | mail@EdinaMN.govCity of Edina EdinaMN.gov
2017 Popular Annual Financial Report
City of Edina Directory
City Council
Mayor Jim Hovland .......................................612-874-8550
Council Member Mary Brindle .......................952-941-7746
Council Member Mike Fischer .......................952-833-9569
Council Member Kevin Staunton ...................952-836-1020
Council Member Bob Stewart .......................952-833-9559
Executive Leadership Team
City Manager
Scott Neal .....................................................952-826-0401
Assistant City Manager
Lisa Schaefer .................................................952-826-0416
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
Don Uram .....................................................952-826-0414
Fire Chief
Tom Schmitz .................................................952-826-0332
Human Resources Director
Kelly Curtin ...................................................952-826-0402
Parks & Recreation Director
Ann Kattreh ..................................................952-826-0430
Police Chief
Dave Nelson ..................................................952-826-1610
Public Works Director
Brian Olson ...................................................952-826-0311
1
• ‘
Photo by Kaylin Eidsness
Edina Aquatic Center Installs
New Water Playground in 2017
With their children, friends Mike Laux and Dietrich Nissen enjoy the water playground
that was added to the Edina Aquatic Center last year, replacing a play structure that was
20 years old. The Edina Aquatic Center will celebrate its 60th anniversary this year from
July 9 to 14 and is open for the season through Aug. 19.
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 2017 CAFR and is consistent with Generally Accepted Accounting Principles. For
a complete review of the City’s financial position for 2017, consult the CAFR, available
online at EdinaMN.gov/Finance or at Edina City Hall, 4801 W. 50th St.
Property Tax Comparison
2017 Property Tax Comparison
Edina
$0
$1,000
$2,000
$500
$1,500
$2,500
$3,000
Eden
Prairie
Bloomington Richfield MinneapolisPlymouthMinnetonkaSt. Louis
Park
Hopkins
*City portion of property taxes only, based on $400,000 home value
Median $1,735
Edina Liquor Delivers on
Lofty Profit Goal
Profits Topped $1 million in 2017
For the second straight year, profits are up at Edina Liquor.
That means more money pouring back into the community to
support Braemar Arena, Centennial Lakes Park, Braemar Golf
Course and other Edina enterprise facilities.
In their heyday, Edina Liquor’s three stores generated about
$1.5 million annually in profit. The arrival of Total Wine and
other factors pushed that number to as low as $650,000 in
2015. Some smaller liquor operations around the Twin Cities
closed shop, but Edina leaders saw opportunity. They even set
a lofty goal of $1 million in profits in 2017.
General Manager of Liquor Operations Josh Furbish, hired
in December 2016, and his team made multiple changes to
boost sales, cut expenses, improve organization and better
serve customers.
“The major focus of 2017 was operational effectiveness,”
Furbish said.
The result: $1,007,000 profits in 2017. That’s more than
$200,000 above the 2016 profits.
2018 is looking even better. First-quarter profits were up
about 130 percent compared to the same period in 2017.
Changes to the Spring Sale format, including flash sales and
rotating weekly sales, drove an increase in traffic and profits
for the quarter.
“The Spring Sale went great. We had a 15 percent increase in
traffic,” Furbish said.
Edina Liquor reorganized in 2017, switching to a centralized
business model and coordinated purchasing. Inventory
practices were improved and operations streamlined. Those
moves cut product costs by $250,000 in 2017. Steering away
from traditional advertising in print to more social media
marketing decreased costs about $60,000 while boosting
reach and effectiveness. Stores opened an hour later to help
offset costs of adding Sunday sales.
Customers will directly see changes in 2018 from the button-
down shirts of Edina Liquor store staff to the launch of free
home delivery. A customer loyalty program is also in the
works. Edina Liquor is working with Vine Lab Wine & Spirits
Academy out of St. Paul to help boost staff knowledge to a
much higher level and improve customer service.
“We’ve always been known for our wine selection and
expertise,” Furbish said. “Now we are applying those same
strategies to spirits and beer.”
Edina Liquor stores are located at 3943 W. 50th St., 5013 Vernon
Ave., and 6755 York Ave. For more information, contact Furbish at
jfurbish@EdinaMN.gov or 952-903-5732.
Edition: Edi na JULY 2018
4801 W. 50th St. Edina, MN 55424 | 952-927-8861 | mail@EdinaMN.govCity of Edina EdinaMN.gov
Race & Equity Task Force Makes
Recommendations
Recommendations presented after Task Force Completes
Year-Long Review
In early 2017, the City organized a Race & Equity Task Force to make recommendations on policies,
practices and strategies to identify and eliminate race-based disparities in City facilities, services
and institutions.
“The City is part of a larger community initiative to take a deeper look at race and equity in Edina.
We are examining whether or not our City government policies, practices and operations create
disparate outcomes for peoples of differing racial groups,” said City Manager Scott Neal when the
initiative kicked off. “If we are creating disparate outcomes, we are committed to discovering why
and what can be done to correct that.”
The Task Force was comprised of nine community members also who were involved in working
groups that reviewed practices and procedures for City services, facilities and institutions. Staff
representing a variety of facilities and departments also served on each working group. Members
of the Task Force were co-chair James
Pierce, co-chair Jessi Kingston, Katherine
Bass, Leonel Dorvil, Thuy Anh Fox, Ramla
Hasanali, Michelle Meek and Christina
Smith. Working group members included Al
Alexander, Sharon Allison, Erica Allenburg,
Pat Arseneault, Dawn Beitel, Arnie Bigbee,
Chris Bremer, Jeff Brown, Valerie Burke,
Randolph Cooper, Kelly Curtin, June
Yoshinari Davis, Heather Edelson, Brian
Hubbard, Ana Munro, Daniel Nye, Kamala
Puram, Eric Rehm, Elena Brito Sifferlin and
Noah Silver.
Several community and small-group
gatherings, one-on-one interviews and
an online survey were held to gather
community perspective and feedback in
order to develop recommendations in five
key areas. Those areas are:
• Actively foster a community culture
that goes beyond racial inclusion
and generates a sense of belonging
for all.
• Visibly demonstrate our
commitment and accountability
to eliminate racial inequities and
create an inclusive and engaged
community.
• Ensure our policies and procedures eliminate practices that may create or perpetuate racial
inequities.
• Implement changes in our community that focuses on building relationships with people of
color.
• Improve the ability to leverage data and analytics to drive desired outcomes.
“Culture is defined as a set of shared values, behaviors and beliefs that are practiced. Our history
shows that we have established norms that, if not challenged, will continue to impact our goal, to
achieve Edina’s goal, to foster an inclusive and engaged community,” said Pierce. “We believe that
executing all of these recommendations will not only set us on the right track, but will over time
establish new norms that will help our culture continue to thrive.”
After receiving and reviewing the recommendations at the May 15 Council Meeting, the
City Council directed staff to evaluate the feasibility and advisability of implementing the
recommendations and report back with the results of their evaluation in September.
“I think everyone should read this report to understand why it’s so important. I think we’re talking
about the end of a step, but the work has to start now. Not to diminish the work that’s already
been done, but we’re just starting and we have to be diligent about the next steps,” said Council
Member Mike Fischer.
For more information about the timeline or to read the full report, visit EdinaMN.gov/Race-Equity or contact
Project Coordinator MJ Lamon at 952-826-0360 or MLamon@EdinaMN.gov.
2017 Popular Annual Financial Report
‘We believe
that executing
all of these
recommendations
will not only set
us on the right
track, but will over
time establish new
norms that will
help our culture
continue to thrive.’
Several members of the Race & Equity Task Force and its working groups attended the May 15 City Council meeting when their
report was presented. Those attending included: Row 1, from left: Katherine Bass, co-chairs Jessi Kingston and James Pierce,
and Thuy Anh Fox; Row 2: staff liaison MJ Lamon, Michelle Meek, Chris Smith, Leonel Dorvil and Elena Brito Sifferlin; and Row
3: Randolph Cooper, Chris Bremer, Eric Rehm, Pat Arseneault, Arnie Bigbee and Valerie Burke.
2
Annual Events
JULY
4th of July Parade
Organized by the Edina
Community Foundation. Begins
10 a.m. on July 4 behind Edina
City Hall, proceeding east on
West 50th Street to downtown
Edina.
4th of July Fireworks
Typically held at 10 p.m. July 4
at Rosland Park following an
8:30 p.m. concert by the First
John Philip Sousa Memorial Band.
AUGUST
Night to Unite
Join other Edina residents and neighborhoods 5-9 p.m.
Tuesday, Aug. 7! Night to Unite was created to promote
neighborhood spirit, increase awareness in crime prevention
and build a stronger partnership between the Edina Police
Department and members in the community. Get outside and
say hello to some of your friends and neighbors! To register
for Night to Unite and have an Edina first responder attend
your event, visit EdinaMN.gov/NighttoUnite.
Torchlight Concert
Typically held at sundown the second Sunday in August at
Centennial Lakes Park.
SEPTEMBER
Fall into the Arts Festival
Organized by the Edina Art
Center to support the Edina
Crime Prevention Fund. Held the
second weekend in September at
Centennial Lakes Park.
SEPTEMBER THROUGH MAY
Indoor Music in the Park
Held at 7 p.m. on Sundays at Edinborough Park. Children’s
concerts are held at noon on Thursdays.
SEPTEMBER THROUGH OCTOBER
Members’ Juried Art Exhibition
Annual members’ juried art exhibition at the Edina Art Center.
OCTOBER
Halloween Party
Held from 6 to 8 p.m. in late October at Edinborough Park.
Trick-or-treating throughout the Park, games and more. Play in
Adventure Peak and the Great Hall.
DECEMBER
Ice Skating Show
Annual performance by the Braemar-City of Lakes Figure
Skating Club at Braemar Arena.
Skating with Santa
Held from 10 a.m. to noon one Saturday in December. Visit
and take photos with Santa, skate and create a holiday gift.
Breakfast with Santa
Held the first Saturday of December at Edinborough Park. Visit
with Santa in a small setting, enjoy a light breakfast and burn
some energy at Adventure Peak.
New Year’s Eve Party
Held in December at Edinborough Park. Family-friendly
evening of music, fun and games. Play in Adventure Peak and
the Great Hall. An early countdown will ring in the New Year.Photo by Jennifer BennerotteFile PhotoFile PhotoFile PhotoFile Photo
2017 Was Record-Setting Year for
Building Permit Revenue
Building Permit Revenue Brings in $5.3 Million Last Year
Building permits give residents and contractors assurance a home or building is
safe from electrical and heating system fire hazards, structural failure and other
health risks. The building permits residents and contractors were issued in 2017
brought in more than $5.3 million in revenues to the City. This compared to
roughly $5.1 million in 2016.
Though permit fees account for the largest percent of the City’s revenue outside
of property taxes, Chief Building Official David Fisher will tell you the most
important thing about the building permit process is the safety it ensures the
city’s residents and visitors – not the revenue.
“Inspections protect the public and welfare of
the city,” he said. “That’s our No. 1 priority.”
There are important financial benefits as well.
While the City budgets conservatively for
building permit revenue, any surplus is combined
with other revenue sources to finance other
capital investments. It also helps to offset the
costs of doing multi-year inspections on larger
projects that take more than a year to finish.
“The revenues brought in from permits and
other sources help the City maintain a moderate
tax rate compared to other metro communities
while continuing to provide a high level of
service,” said Finance Director Don Uram. “The
additional tax base resulting from increased
property values from improvements is also
beneficial in that it helps to moderate any future
property tax levies.”
The increase in building permits shows more
houses are being improved and built, and
commercial redevelopment is taking place at a
higher rate. The revenues brought in by building
permits in 2017 more than doubles the revenue
delivered to the City in 2009 when permit revenue was just north of $2 million.
Building permit cost is based on the valuation of the project for which the permit
it is being issued. The two largest projects the Building Division inspected in
2017 were The Onyx and The Loden. The Onyx on York Avenue was completed
in late 2017. The 244-unit complex was valued at $44.9 million. The Loden, a
luxury apartment building on Lincoln Drive, was completed this summer. The
valuation of the 246-unit development was roughly $36 million.
“Large projects, such as the recent luxury apartment buildings that went up,
contribute a substantial amount toward the permit revenues,” said Fisher. “They
keep our department busy.”
Both the Finance Department and the Building Inspections Division agree the
high numbers of permits won’t stay this way forever, but the foreseeable future
looks promising.
“There are peaks and valleys all the time. In Edina, the highs and lows aren’t as
dramatic,” said Fisher. “The next couple of years look pretty good for continued
growth.”
For more information on building permits, contact Fisher at 952-826-0450 or
dfisher@EdinaMN.gov. Photo by Katie LauxEdition: Edi na JULY 2018
4801 W. 50th St. Edina, MN 55424 | 952-927-8861 | mail@EdinaMN.govCity of Edina EdinaMN.gov
2017 Popular Annual Financial Report
Braemar Golf Course Bustling Even Before New Course Opens
Overall Improvements Still Running Under Budget
The construction crews are done transforming the existing 27-hole golf course
plagued with flooding problems into an 18-hole championship course with
multiple playing options for golfers of all ages and abilities.
Now golfers just have to wait for the grass to grow while the builder wraps up
a few punch list items. The new Braemar Golf Course Championship 18 Course
will open in Spring 2019, after the grow-in phase of the project ensures a solid
foundation to play upon.
The total project to rebuild the Championship 18 plus add and improve amenities
around the Braemar Golf Course facility is still running under the $7.5 million
projected cost and is expected to come in under budget, General Manager Joe
Abood said.
That is despite the very rainy and wet 2017 that forced a delay of the opening
date. Because of that delay, course builder Mid-America Golf and Landscape
agreed to make about $250,000 worth of what it termed “project betterments.”
“We asked them to give us some upgrades for the project,” Abood said.
Part of the financial challenge over the next few months is caring for a golf
course that isn’t bringing in any revenue. Grounds crews must groom and
maintain the Championship 18, despite no play, just like they do the popular
Academy 9 Par 3 Course to ensure it gets well established.
Those expenses were planned for all along. And in the gap before, plenty is
happening at Braemar Golf Course. A new multi-use turf lawn area next to the
Clubhouse will open this month for lawn games, weddings, corporate events and
more. And Red River Kitchen, a popular farm-to-table food truck and restaurant,
is moving into the Clubhouse and will offer cart service to golfers and manage
the banquet space.
In addition, the Clubhouse pro shop was remodeled this year and golfers will
soon get new chipping and bunker greens to try out.
“We always have a lot going on,” Abood said. “People should drop by and see
for themselves.”
Braemar Golf Course is located at 6364 John Harris Drive. For more information, visit
BraemarGolf.com. To keep current on news and hole updates, sign up for emails at
EdinaMN.gov/CityExtra.
Property Tax Comparison
Building Permit History
-
$2 million
$4 million
$1 million
$3 million
$5 million
$6 million
2009 2011 2013 2015 2017200820072010201220142016
Actual Budget
3
The City’s steady rise in building permits helps moderate the impact of tax levies.Photo by Debbie TownsendThe remodeled Pro Shop in the Braemar Golf Course Clubhouse opened this spring with more room for all
the clothing, gear and accessories from top brands including Adidas, Callaway, Nike, TaylorMade
and Titleist.
Golfers get in some practice on the Driving Range, which is frequently bustling with its ability to
accommodate 68 golfers at a time.Photo by Scott Denfeld
Edition: Edi na JULY 2018
4801 W. 50th St. Edina, MN 55424 | 952-927-8861 | mail@EdinaMN.govCity of Edina EdinaMN.gov
BY THE NUMBERS
City of Edina
52,000
From its incorporation in 1888 as a milling community on the banks of Minnehaha Creek, Edina has evolved to
be a model among municipalities in the Twin Cities metropolitan area. According to the 2010 Census, Edina has
an official population of 47,941. The city is situated immediately southwest of Minneapolis in Hennepin County. It
is a first-ring suburb known for its shopping and dining, parks and recreational facilities and the excellent quality
of life for residents.
Median Home Value
Estimated Population
51,804 People Work in EdinaMore than
Major employers in the
City include Fairview
Southdale Hospital, Edina
Public Schools, City of
Edina, Bl Worldwide,
Regis Corporation, Barr
Engineering, Lund Food
Holdings, International Dairy
Queen, Edina Realty and
Dow Chemical Film Tec.
Major Employers
2017 Popular Annual Financial Report
Detailed in the graphs provided are the 2016 and
2017 total revenues and expenditures for all the
governmental funds. Expenditures are presented
by function, while revenues are presented by
category. At the end of the current fiscal year,
revenues and expenditures totaled $61,790,035
and $58,428,546, respectively, for an overall
increase in fund balance before other financing
sources of $3,361,489. Expenditures came in
5 percent, or $3,339,855, lower than 2016.
The decrease is attributed to Public Works and
Parks expenditures decreasing by $3,562,798
and $1,299,574, respectively, in 2017 due to
fewer capital outlay expenses compared to 2016.
Offsetting the decrease is an increase in general
government expenditures of $936,135 resulting
from increased capital outlay expenditures by
the Housing and Redevelopment Authority. The
changes in capital outlay spending were planned
in the City’s Capital Improvement Plan. Revenues
came in 2 percent, or $1,447,294, lower than
2016. The decrease is attributed to $1,250,000 of
parkland dedication and $2,000,000 of affordable
housing revenue generated in 2016 as a result of
redevelopment; no such amounts were received
in 2017. Offsetting the decrease is an increase in
taxes of $2,403,370, primarily due to an increased
general fund operating levy that provides funding
to continue existing service levels. In addition,
tax increment collections increased by $643,801,
primarily due to increased collections from the
Southdale 2 tax increment financing district. Taxes,
which are made up of property, franchise, and
lodging taxes, remain a heavily relied-on revenue
source for governmental operations, making up 58
percent of all governmental fund revenues.
Governmental Funds
4
Governmental Fund Expenditures
2016 2017 Difference
General Government $8,765,620 $9,701,755 $936,135
Public Safety $19,553,501 $19,891,159 $337,658
Public Works $22,443,237 $18,880,439 $3,562,798
Parks $3,398,841 $2,099,267 $1,299,574
Debt Service $7,607,202 $7,855,926 $248,724
Totals $61,768,401 $58,428,546 $3,339,855
$5
$15
$0
$10
$20
$25
$30
Public
Safety
ParksGeneral
Government
Public
Works
Debt ServiceMillionsGovernmental Fund Expenditures Comparison 2016 2017
Governmental Fund Revenues
$5
$15
$0
$10
$20
$25
$30
$40
$35
Special
Assessments
Tax
Increment
Collections
Charges for
Services
Taxes Licenses
and
Permits
Inter-
governmental
Misc.Fines and
ForfeitsMillionsGovernmental Fund Revenues Comparison 2016 2017
2016 2017 Difference
Taxes $33,723,070 $36,126,440 $2,403,370
Tax Increment
Collections $2,779,097 $3,422,898 $643,801
Special Assessments $5,276,194 $5,330,766 $54,572
Licenses and Permits $5,268,519 $5,403,222 $134,703
Intergovernmental $5,775,114 $3,687,262 $2,087,852
Charges for Services $4,689,389 $4,917,173 $227,784
Fines and Forfeits $1,016,817 $1,135,986 $119,169
Miscellaneous $4,709,129 $1,766,288 $2,942,841
Totals $63,237,329 $61,790,035 $1,447,294
$530,800
2.83
Unemployment Rate
percent
Independent bond-rating agencies
Standard & Poor’s and Moody’s
Investors Service affirmed their high
bond ratings for the City of Edina.
Moody’s Investors Service in 2000 gave
the City of Edina its highest rating, Aaa.
In 2002, Standard & Poor’s upgraded
Edina’s general obligation bond rating
to AAA, the company’s highest rating.
The agencies have reaffirmed their
ratings several times since, most recently
in the spring of 2018.
Edina is one of just a few communities
in the State with both triple-A bond
ratings. Others are Apple Valley,
Bloomington, Burnsville, Eagan,
Eden Prairie, Maple Grove, Plymouth,
Rochester, Roseville and Woodbury.
Bond
RatingAAA