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2022-2023 Annual Budget2 CITY OF EDINA, MINNESOTA 2022 Edina City Council Mayor James Hovland Council Member Ron Anderson Council Member Carolyn Jackson Council Member James Pierce Council Member Kevin Staunton City of Edina Staff City Manager Scott Neal Assistant City Manager Lisa Schaefer Finance Director Alisha McAndrews Assistant Finance Director Andrea Rich Contributing Staff 2021-22 City Management Fellow Risi Karim 3 CITY OF EDINA, MINNESOTA 4 CITY OF EDINA, MINNESOTA TABLE OF CONTENTS I. Introduction City Manager’s Message Executive Summary II. Goals & Processes Organizational Highlights Budget Strategies Budget Process III. Community Profile IV. Budget Summary Fund Descriptions Transfers Debt Service Budget Factors Economic Outlook Long-term Planning Headcount Capital Summary V. Departments Administration Communications Community Development Engineering Finance Fire Human Resources Information Technology Parks & Recreation Police Public Works VI. Financials VII. Appendix Fund Definitions Financial Policies VII. Glossary 6 7 14 26 29 31 40 45 47 50 54 57 59 61 66 73 77 95 111 114 129 132 135 166 175 184 204 206 211 Strong Foundation | Livable City | Reliable Service | Better Together INTRODUCTION 6 CITY OF EDINA, MINNESOTA City Manager’s Message I am pleased to present you the 2022-2023 biennial budget for the City of Edina. This budget is the culmination of hundreds of hours of work by City employees, advisory commissioners and City Council Members. The budget is built on the priorities of our City Council, which is based on their interactions with Edina’s residents, business owners and taxpayers. Allocating public financial resources for specific city government services, programs and projects is an most important policy statement from your elected and appointed city government officials. The budget for 2022-2023 continues traditional city service levels in areas such as environmental protection, recreation programming, building inspections, and public facilities maintenance, while ramping up service levels in public health, emergency medical services, police protection, and street maintenance. The City Council establishes the priorities for the biennial city budget through their interactions with residents, by using informational tools such as bettertogetheredina.org and the biennial Quality of Life Survey, and by collaborating with City staff on best practices and performance measures. The City Council’s priorities are also instrumental in driving the City staff’s production of work plans designed to accomplish the City Council’s policy priorities. The staff create fiscal projections for the work plans, which eventually become the primary outline of our 2022-2023 City Budget. The work plans are where the budget becomes real and where priorities become changes and improvements in the community. Edina weathered the COVID-19 pandemic by meeting its many challenges directly. The sacrifices and compromises that were necessary to get through our 2020-2021 budget period will help us achieve success in our 2022- 2023 City Budget and work plans. City officials will continue to do our best to lead and follow in a manner that is responsive to our residents and elected officials on our City Council with the goal of sustaining our high quality of life for Edina residents. Scott H. Neal, City Manager 7 CITY OF EDINA, MINNESOTA The 2022-2023 budget details the key priorities of City Council (pages 19-28) and the resources dedicated to achieve results for Edina residents. The City strives to provide increased accountability and transparency into City operations through the budget document itself. This budget is organized by fund and by department (pages 187-198). The fund level section shows all expenditures by department and type. The departmental organization (pages 65-183) gives insight into the types of services and programs that each one delivers, the departmental goals - in support of the City- wide goals, and performance measures. The performance measures assist in identifying effectiveness of services and programs. Many of the performance measures are based on the Quality of Life Survey that is administered every-other year. The budget document includes more than the numbers. This document is also a tool for communicating the City’s service driven response to the needs of the community. The 2022-2023 biennial budget was adopted in an environment of pandemic uncertainty, with respect to the virus itself and its impact on the economy, our residents and community. However, Edina faces this challenging environment with a solid foundation of a strong, diverse and growing economy, with an estimated market value of $13.8B in 2022. This strength is recognized by the rating agencies, who have awarded the City with Aaa/AAA bond ratings. Against this backdrop, the 2022-23 biennial budget aims to respond to uncertainty by focusing on public safety, preserving and enhancing our strong local economy, keeping the City’s capital assets in good working order, preparing the community for climate change, and investing in City employees. This focus is in support of the four budget pillars: Strong Foundation, Livable City, Reliable Service, and Better Together. Specific changes in the 2022-23 budget from 2021 include: •Increasing public safety staffing. •Promoting additional tree protection and planting by adding a position to the Forestry Division. •Providing faster responses to public information requests and more dedicated support to elections management. •Strengthening attention to environmental protection and community infrastructure with street sweeping. •Enhancing community pandemic recovery efforts by directing Federal, State and Local Fiscal Recovery Funds from the ARPA to the members of our community most impacted by the pandemic. •Investing in additional information technology to ensure secure, reliable systems that protect against threats. •Beginning conversion of street reconstruction funding from special assessments on property owners to a tax levy. •Continuing capital improvement and equipment levies to preserve the City’s assets and replace equipment at the end of its useful life. •Providing competitive employee compensation and benefits to attract and retain a skilled and high- performing workforce. Executive Summary 8 CITY OF EDINA, MINNESOTA The City’s consolidated annual budget is $140M and consists of diverse revenue sources, including taxes, license and permit fees, sales from the business-like enterprises, and grants from federal and state governmental agencies. The City’s governmental funds tend to be an area of high visibility, as it includes the City’s property tax levy. The City levies for the General Fund, Debt Service Fund, Construction Fund, and the Housing and Redevelopment Authority (HRA) Fund. The total tax levy for the 2022 budget is $45,367,336, which is a 7.97% increase over 2021. For a median- valued home of $571,800, this would be about a monthly increase of about $6.63 or an annual increase of $80. EXECUTIVE SUMMARY - 5 10 15 20 25 30 35 40 45 50 2019 2020 2021 2022 2023Tax Levy Dollars in MillionsCity of Edina Property Tax Levy HRA Fund Construction Fund Debt Service Fund General Fund 9 CITY OF EDINA, MINNESOTA EXECUTIVE SUMMARY General Government 15% Public Safety 41%Public Works 15% Parks and Recreation 10% Debt Service and Capital Outlay 19% What will my 2022 City property taxes pay for? Parks & Recreation—Administration and maintenance of the entire parks system including 44 parks and open spaces that total 1,563 acres of property, including park enterprise facilities. The department coordinates park maintenance, adaptive recreation, adult and youth recreation, and works with 14 athletic associations, the Edina Garden Council and the Edina Historical Society. Public Works—Responsibility for the City’s public buildings, roadways, water infrastructure, sanitary and storm sewer systems, and maintenance of vehicles and equipment such as automobiles, mowers, snowplows, fire trucks, etc. General Government—Assessing, Building Inspections, City Administration, Communications, Economic Development, Finance, Planning, Human Resources, Race & Equity and Sustainability. Public Safety—Police, fire and ambulance services. Debt Service & Capital Outlay —Fixed asset purchases for the General Fund departments as well as principal and interest payments for debt funded through the tax levy (e.g., new City Hall building). 10 CITY OF EDINA, MINNESOTA Organizational Highlights EXECUTIVE SUMMARY Comparing property taxes across jurisdictions is difficult due to differences in the tax base, growth and development status, and the quantity and quality of services delivered. However, we believe Edina compares favorably according to surrounding cities, which tend to share many similarities with Edina. The comparison chart here shows what the buyer of a $400,000 home would pay to each city in annual taxes if the buyer chose to live in that city. The City receives 22% of property taxes paid by residents. The remainder is distributed to the Edina School District, Hennepin County, and other taxing districts. Hennepin County 30% City of Edina 22% Edina School District 41% Watershed, Metro Districts, & Other 7% Where Do My Property Taxes Go? 1 Plymouth 1,057$ 2 Edina 1,154$ 3 Eden Prairie 1,260$ 4 Maple Grove 1,278$ 5 Shakopee 1,280$ 6 Woodbury 1,288$ 7 Shoreview 1,289$ 8 Lakeville 1,370$ 9 Minnetonka 1,428$ 10 Eagan 1,449$ 11 Apple Valley 1,523$ 12 Bloomington 1,648$ 13 Maplewood 1,673$ 14 Savage 1,685$ 15 Burnsville 1,709$ 16 St. Louis Park 1,777$ 17 Golden Valley 2,091$ 18 Minneapolis 2,189$ 19 Richfield 2,213$ 20 Hopkins 2,698$ City Property Tax 2021 City taxes on $400,000 11 CITY OF EDINA, MINNESOTA EXECUTIVE SUMMARY Franchise fees and other taxes—collected by gas, electric and cable companies and remitted to the City to fund pedestrian and cyclist improvements; conservation and sustainability initiatives; and government, education and public access channels. Licenses and permits—includes building permits, liquor licenses, and food establishment licenses. Federal & State Aid—grants, programs and formula driven aid from the state and federal governments for roads and emergency response support. Charges for services—includes ambulance fees and park program registration fees. Property tax levy 71% Franchise fees & other taxes 2% Licenses and permits 10% Federal & State aid 4% Charges for services 11% Fines and forfeitures 1%Other revenue 1% General Fund Revenue General Fund Revenues— The City’s largest fund, the General Fund, includes different revenue sources described below. It is estimated that the City will collect $52M in General Fund revenue in 2022, with 71% of the revenue coming from the property tax levy. General Fund Expenditures— The next page provides a high-level look at how the General Fund revenue sources pay for the operations of City services. The first chart shows how salary & benefits make up the largest share of City expenses each year. Other operating budget drivers include contractual services for things such as information technology and other professional and technical services, commodities for road salt and other supplies, and internal services. Internal services are central administrative functions (HR, Finance, IT, and Risk Management) that are provided to all city departments. Internal services is how we allocated the expenses to each department that benefits from these key business functions. As mentioned on page 9, the City’s public safety departments (Fire and Police) make up the largest share of General Fund spending by department, followed by Public Works and Parks and Recreation. 12 CITY OF EDINA, MINNESOTA EXECUTIVE SUMMARY $0 $5 $10 $15 $20 $25 $30 $35 $40 2019 Actuals 2020 Actuals 2021 Budget 2022 Budget 2023 Budget Millions General Fund Expenditures by Expense Type Commodities Internal services Contractual services Salary & benefits $0 $3 $5 $8 $10 $13 $15 Finance Human Resources Communications Community Development Engineering Administration Parks & Recreation Public Works Fire Police Millions General Fund Expenditures by Department 2023 Budget 2022 Budget 2021 Budget 2020 Actuals 2019 Actuals Strong Foundation | Livable City | Reliable Service | Better Together GOALS & PROCESS 14 CITY OF EDINA, MINNESOTA The City of Edina operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a City Council (Council) consisting of the Mayor and four other members, all elected on a non-partisan basis. The Council is responsible, among other things, for adopting the budget, approving ordinances, appointing committees and hiring the City Manager. Council Members serve four-year terms, with two Council members elected every two years. The Mayor also serves a four-year term. The Mayor and Council are elected at large. The City Manager is responsible for carrying out the policies and ordinances of the Council and for overseeing the day-to-day operations of the City government. Edina is organized into six “operating” departments and four “supporting” departments. The primary function of operating departments is to provide direct services to the public. The primary function of supporting departments is to manage City-wide initiatives, coordinate resources across departments, and help departments meet their service-goals in alignment with organizational strategy. Organizational Highlights 15 CITY OF EDINA, MINNESOTA In the City of Edina, the operating budget is part of a comprehensive approach to performance management. The principles of this performance system are outlined below: PERFORMANCE SYSTEM PRINCIPLES Systemic Strategic objectives play an integral role in leadership decision-making, organization planning and resource allocation. Reflects Community Goals Community input is gathered to determine desired community goals and outcomes. These goals are captured in a strategic plan that serves as the anchor for the performance management system. Aligned at All Levels The City’s departmental plans/programs reflect community goals. Departments work cooperatively across functional lines to achieve key outcomes. Employees understand how their work ties to City’s mission, vision and strategy. Outcome-Based Success is measured through performance measures that tie as closely as possible to customer outcomes. Performance data becomes an important factor in future planning. Drives Budget Resources are allocated according to strategic priorities. Successful programs, as determined through performance measures, receive more resources. Organizational Performance Edina has three critical sources of strategic guidance used to inform the creation of a two-year city-wide Budget Work Plan and operating budget: Vision Edina, the Comprehensive Plan, and the Capital Improvement Plan. 16 CITY OF EDINA, MINNESOTA VISION EDINA Vision Edina is a long-term strategic framework that helps our community understand and guide the important decision -making that will impact Edina’s future. Vision Edina was developed through a broad-based and inclusive community visioning process conducted in 2014. This framework lays out the City’s vision and mission. Vision: Edina holds a well-earned reputation as a city of choice. It is the model of a successful, mature, and progressive urban community, that strives to lead in a modern and evolving world. We maintain our heritage and attractiveness, and afford our residents the highest quality of life, while actively embracing the future. The features that define our future community include: Inclusive and Connected • Built-to-Scale Development • Sustainable Environment Community of Learning • Future-Oriented Mission: To provide effective and valued public 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 health and uncommonly high quality of life enjoyed by our residents and businesses. ORGANIZATIONAL PERFORMANCE COMPREHENSIVE PLAN The Comprehensive Plan is meant to provide Edina with an outline for future development. Edina’s Comprehensive Plan includes chapters on land use, transportation, wastewater, water supply, storm water management, housing and parks and recreation. The Metropolitan Council requires every city in the seven-county metro area to have such a plan and State law requires that it be updated every 10 years. Edina updated its Comprehensive Plan in 2018 and 2019. The process, established by the Edina City Council, included regular work sessions by the Planning Commission Comp Plan Task Force, large-group public meetings, smaller community meetings in specific areas of the City, listening sessions, intergenerational dialogue with residents and other stakeholders, as well as opportunity for comment on the City’s website. CAPITAL IMPROVEMENT PLAN In addition to pursuing the strategic focus areas outlined in Vision Edina, the City plans for more routine capital maintenance and improvements by preparing a capital improvement plan (CIP). The CIP represents a framework for planning the preservation and expansion of infrastructure, facilities, equipment and technology while at the same time advancing towards our long-term vision. The CIP is the first step towards estimating the schedule, cost and sources of revenues to pay for high priority projects. More information regarding the City’s CIP can be found on page 62. 17 CITY OF EDINA, MINNESOTA WORK PLAN IMPLEMENTATION ORGANIZATIONAL PERFORMANCE OTHER CITY WORK PLANS Once approved, the two-year Budget Work Plan drives several other Work Plan at the implementation level. 18 CITY OF EDINA, MINNESOTA ORGANIZATIONAL PERFORMANCE BUDGET WORK PLAN The City Council and staff develop a two-year Budget Work Plan to coincide with the operating budget. The process begins with identifying the goals, objectives, and actions that will put the City in the best position to achieve the outcomes identified in the City’s strategic plans. Once approved, the two-year Budget Work Plan drives several other Work Plans at the implementation level. Budget Work Plan Definitions Budget Goals are the broad outcomes to be achieved by the two-year budget. Goals stay consistent from year to year. Budget Objectives are the measurable results to be achieved during this budget to make progress on the Budget Goal. Strategies/Actions are the specific methods to be used or projects to be completed during the budget to meet the objectives. 19 CITY OF EDINA, MINNESOTA ORGANIZATIONAL PERFORMANCE BUDGET PILLARS The City of Edina has four on-going budget pillars: 1. City infrastructure, facilities, technology, and equipment meets community needs now and in the future. 2. City services enhance the safety, wellbeing, and quality of life experienced in Edina. 3. City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. 4. City government fosters an inclusive, informed and engaged community. These four pillars guide the budget making process, including the budget work plan. 20 CITY OF EDINA, MINNESOTA ORGANIZATIONAL PERFORMANCE Pillar 1: City infrastructure, facilities, technology, and equipment meets community needs now and in the future. Infrastructure serves as the foundation for providing core city services such as transportation, clean drinking water, sanitary sewer services, and flood protection. City facilities house the people and equipment that provide public services, and the shared right of way, public places and parks are where people come together. Technology and equipment support our ability to provide reliable service day to day or in emergencies. 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. 21 CITY OF EDINA, MINNESOTA ORGANIZATIONAL PERFORMANCE Pillar 2: City services enhance the safety, wellbeing, and quality of life experienced in Edina. City services including police, fire, inspections, water/sewer, and streets are critical to the safety of the community. Parks, recreational facilities, and other City programs enhance the overall quality of life for those who live, work, and visit Edina. The City recognizes that a skilled and engaged workforce is critical for the delivery of high-quality services. The City needs to recruit and retain a strong workforce with the necessary skills, tools, and resources to accomplish the work. 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. 22 CITY OF EDINA, MINNESOTA PERFORMANCE MEASUREMENT & MANAGEMENT ANNUAL BUDGET ORGANIZATIONAL PERFORMANCE Pillar 3: City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. Ensuring a vibrant city requires forward thinking and preparation. Affordable, walkable neighborhoods that foster mobility and interconnectedness improve the quality of life for current and future residents. Reducing the community’s greenhouse gas emissions and responding to climate change through adaptive management of natural assets such as trees, greenspace, and water is critical to the health of future generations. 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. 23 CITY OF EDINA, MINNESOTA PERFORMANCE MEASUREMENT & MANAGEMENT ANNUAL BUDGET ORGANIZATIONAL PERFORMANCE Pillar 4: City government fosters an inclusive, informed and engaged community. The City wants to ensure that it works for all of the community. An inclusive and engaged community is one where everyone feels welcome, has equitable access to government, and has a voice in decisions that affect them. City government works best when residents are informed and have meaningful opportunities for engagement that include a variety of diverse perspectives. The City will continue to learn and adapt to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions. 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. 24 CITY OF EDINA, MINNESOTA ORGANIZATIONAL VALUES Stewardship We make wise investments that focus on the best long-term value for residents. • Decisions consider the impact to future generations and balance the service, cost, and risk for the life of the investment. • Operations, projects, and services are managed in an efficient manner. • We use data to proactively maintain and replace assets. • We take advantage of opportunities to increase long-term value. • We integrate project scope and decision-making processes with related city services, and partner with stakeholders to deliver best value projects that stand the test of time. Equity We provide equitable opportunities for people to participate in their City government and access City institutions, facilities, and services. • Residents have equitable access to City services and programs. • City ordinances, policies, and procedures are equitably enforced. • City decisions consider the impact to historically underrepresented groups. • City government representatives, volunteers, and staff reflect the diversity of the people it serves. • Residents have multiple options to have their voices heard, and barriers to participation are minimized. • The City will continue to learn and adapt to the multiple needs of all in the community, while consistently applying an equity lens in all decisions and interactions. 25 CITY OF EDINA, MINNESOTA ORGANIZATIONAL VALUES Health We use a Health-in-All Policies approach (HiAP) to promote and protect the physical, mental, and social wellbeing of all people who live, work, or visit Edina. • We recognize that an individual's health and wellbeing is more than just physical health, and is impacted by social, economic, and environmental factors. • We recognize that health is affected by all City activity, from daily operations to policy development and implementation. • We utilize a Health-in-All-Policies lens to evaluate and consider health impacts of City decisions and policies. • We recognize existing disparities in health outcomes between populations and work to address those disparities. Sustainability We ensure that our policies, decisions, and plans have a positive impact on people and the planet now and for future generations. • City infrastructure, facilities and equipment systems are designed and maintained to reduce the City’s greenhouse gas emissions and meet sustainability goals. • Sustainable design is visibly and materially included in development and redevelopment strategies. • We evaluate the impact of future climate and extreme weather on infrastructure systems and create or modify infrastructure to reduce risk or improve resilience. • Edina demonstrates resiliency to a changing climate and future community needs. 26 CITY OF EDINA, MINNESOTA BUDGET STRATEGIES As debt levies expire, increase the Capital Improvement Plan (CIP) Levy by equivalent amount to establish reliable funding for ongoing building maintenance, replacement, and capital improvements. Host local option sales tax referendum in 2022 general election. If ap- proved, implement the results. Approve a clean water strategy for surface waters. Develop funding strategy to implement a street lighting system and maintenance plan that balances sustainability, public safety, and quality of life goals, including increasing energy efficiency, ensuring safely lit community, and minimizing light pollution. Implement Morningside Flood Infrastructure Project. Consider recommendations from Parks & Recreation Commission for using alternative funding methods for park improvements and deter- mine next steps. Reassess City Hall space needs for post-pandemic service delivery. Acquire Fire Station #2 site. Determine finance method/plans. Select a project architect. Approve construction plans to ensure the building sat- isfies the needs of City staff to provide 24-hour fire and EMS operations. Include office space for Community Health division within the Station #2 site. 1I 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 de- termined, utilizing response models to provide efficient emergency response to all residents. 1J Expand the City’s fiber optic network for faster and more secure connections. 1K Replace Public Safety Computer-aided Dispatch (CAD) and Record Management System (RMS). Go live Q1 2023. 2022—2023 BUDGET STRATEGIES 27 CITY OF EDINA, MINNESOTA BUDGET STRATEGIES 2A Determine long-term plan for future of Art Center building and delivery of art programs. 2B Increase resources, training, and coordination for responding to men- tal health-related calls for service. 2C Implement new agreement with Edina Public Schools regarding election administration for 2022 and beyond. 2D Evaluate remote work and services delivery/long-term impact post- COVID-19 to ensure: • Resources for employee mental health and work/life balance • Part-time / seasonal staffing model and compensation 3A Continue implementing strategies to create affordable housing units using the affordable housing trust fund and other applicable sources; explore acquiring another parcel for a multi-housing development; continue developing single family and multi-family preservation strategies. (Q2) 3B Implement sustainable building policy to incent sustainable building and operational practices for new development and redevelopment. 3C Execute and implement redevelopment agreements for 5146 Eden Ave. 3D Evaluate the feasibility of creating district parking in the 44th and France Area per the 44th and France Small Area Plan, including parameters that balance current transportation needs and sustainability goals. 3E Prepare a District Plan for the Cahill Industrial Park. 3F Implement recommendations of the Housing Strategy Task Force final report. 3G Determine spending plan for available TIF funds by 2022. 3H Explore ways City can incent expansion of broadband high-speed internet to public. 3I Implement strategies to increase organics participation to 50% (currently 32%) and tonnage to 200 per month (currently 100) by 2023. 3J Implement strategies to create affordable/workforce housing (between 992 and 1,804 units by 2030). 28 CITY OF EDINA, MINNESOTA BUDGET STRATEGIES 4A Complete final report of the 2018 Racial Equity Implementation Plan and incorporate race & equity goals into ongoing department work plans. (Operationalize equity plans.) 4B Create strategy, tools, and templates for better alignment and meas- urement of Council Values (Community Engagement, Sustainability, Community Health, and Race & Equity) into City decision-making, and provide quarterly resources and activities for City Council. 4C Continue implementation of recruitment and selection strategy for Boards & Commissions to better reflect diversity reflective of demographics in Edina. 4D Administer 2023 Quality of Live Survey. 4E Evaluate and implement transparency tools and dashboards for City budget and overall performance. 4F Use an equity lens to evaluate City complaint response process and procedures. 4G Ensure successful implementation of ARPA Funding. 4H Review Race & Equity Task Force recommendations to incorporate into Priority Use agreements with athletics associations. 29 CITY OF EDINA, MINNESOTA Budget Process The City implemented a two-year budget cycle beginning with the 2012-2013 operating budget. The objective is to take an alternating year approach to the operating budget and Capital Improvement Plan (CIP) processes. While both the operating budget and CIP will be reviewed every year, the majority of the planning, focus and effort will alternate between the two. During odd-numbered years, the City’s focus is on the operating budget. Extra efforts by staff members are dedicated to examining operating budgets and ensuring that they are sustainable and able to meet the goals of the City. The two- year operating budget that is created during odd-numbered years will take effect on Jan. 1 of the following even- numbered year. The CIP is reviewed, but only updated if necessary. The City’s long-range plan is updated during this time as well. During the spring and summer of 2021, the Finance Department worked with all City departments to create a budget that was reflective of the goals and priorities that the City Council identified earlier in the year. During these meetings, input was provided on trends and issues happening within each department and the City overall, especially as they relate to the operating budgets of each City department. During even-numbered years, the City’s focus will be on the CIP. Extra efforts are dedicated to reviewing the projects in the CIP and prioritizing them based on information available at the time. The operating budget is reviewed, but only updated if necessary. If an amendment is needed to the budget it is presented to the City Council for approval. The City Council is required to adopt a final budget no later than the close of the fiscal year. The annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund and by depart- ment. The City is empowered to levy a property tax on both real and personal property located within its bound- aries. 30 CITY OF EDINA, MINNESOTA BUDGET PROCESS 2022-2023 BUDGET PROCESS TIMELINE March 2021 Council retreat to develop 2022-2023 City-Wide Work Plan themes June 1, 2021 Department Directors finalize 2022-2023 budget requests July 17, 2021 The City’s Executive Leadership Team (ELT) reviews the 2022- 2023 draft budget July 21, 2021 Council Work Session to introduce the City Manager’s proposed 2022-2023 City-Wide Work Plan themes and budget scenarios August 17, 2021 Council work session to review City Manager’s proposed 2022- 2023 budget draft September 9, 2021 Council consents to two-year HRA Levy September 10, 2021 Preliminary HRA Levy Adoption September 21, 2021 Public Hearing and option to adopt the 2022 final property tax and HRA levy at a City Council Meeting October 19, 2021 City Council and staff discuss and make any necessary changes to the 2022– 2023 Budget December 7, 2021 Public Hearing and option to adopt the 2022 operating budget and levy at a City Council Meeting December 21 2021 Deadline to adopt a formal resolution to adopt the final 2022- 2023 budget and property tax levy Strong Foundation | Livable City | Reliable Service | Better Together COMMUNITY PROFILE 32 CITY OF EDINA, MINNESOTA Edina began as a small farming and milling community settled by Irish and Scottish families in the mid 1800s near Minnehaha Creek. At that time, the area was part of Richfield Township, but in 1888, the residents voted to separate from Richfield Township and incorporate as the Village of Edina. The City is now a fully developed first-ring suburb of Minneapolis. The City occupies a land area of 16 square miles and serves a population of just over 50,000 residents. Currently, 98 percent of the City is developed. Its first major period of growth occurred in the 1950s as residents and businesses looked to move into suburban neighborhoods. The late 1960s and early 1970s were another significant period of growth. Today, the City is in a period of “redevelopment” as aging structures (both commercial and residential) are being replaced with newer structures that better suit the needs of today’s businesses and residents. Approximately 59 percent of Edina’s land area is attributed to developed residential neighborhoods, 12 percent to commercial/industrial uses, 16 percent parks and open space with the remainder used for local, county and state roadways. Many major highways run through or are close to Edina, making it readily accessible to all within the Minneapolis metropolitan area. Edina is a short, 15-minute drive from the Minneapolis-St. Paul International Airport. The City provides a full range of public services, including police and fire protection; ambulance service; construction and maintenance of highways, streets, and other infrastructure; water and sewer services; and recreational and cultural activities and events. Community Profile 33 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE MARKET VALUE OF PROPERTY: LAST 10 FISCAL YEARS Although the City has been nearly fully developed and borders haven't changed for many years, total market value of properties in the City has grown. Like many communities, property values dropped somewhat after 2009, but the drop in Edina was not as severe as many other places. Residential and commercial redevelopment in recent years has contributed to the increase in the total market value of Edina. a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown. The City receives reports from Hennepin County showing total market value, but not separated by property classification. Estimated Taxable 8,955$ 8,799$ 9,066 8,912 9,838 9,702 10,420 10,296 10,903 10,785 11,655 11,548 12,370 12,272 12,879 12,786 13,344 13,255 13,811 13,730 Source: Hennepin County Taxpayer Services. Market Value (In millions) a 2017 Fiscal 2015 2016 2013 2014 2022 Year 2018 2019 2020 2021 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Estimated market value of taxable property (in millions) 34 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE TOP 10 TAXPAYERS The City of Edina's local economy is healthy and diverse. There are several large taxpayers in the City that are important, but none is dominant. Edina is not overly reliant on one business or industry. Percentage of Total Tax Capacity Rank Capacity Southdale Shopping Center 2,895,286$ 1 1.83% Galleria Shopping Center 2,759,505 2 1.75% Southdale Medical Building 1,560,070 3 0.99% Centennial Lakes Retail 1,193,162 4 0.76% Southdale Office Center 1,044,838 5 0.66% Onyx Apartments 865,110 6 0.55% Centennial Lakes Phase V 810,668 7 0.51% Centennial Lakes Phase IV 804,370 8 0.51% Loden Apartments 757,296 9 0.48% Lifetime Fitness/Lifetime Works 745,564 10 0.47% Totals 13,435,869$ 8.51% Source: City of Edina Assessing Office 2020 Taxpayer 35 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE TOP 10 EMPLOYERS The City of Edina's local economy is healthy and diverse. There are several large employers in the City that are important, but none is dominant. Edina is not overly reliant on one employer or industry. TAXES Edina $500 $1,000 $1,500 $2,000 $2,500 $3,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000City Taxes on $400,000 housePopulation Property Taxes in the MSP Metro Area Each blue diamond indicates a different city in the MSP area. Includes all cities with population 25,000- 2021 Taxes calculated using League of MN Cities property tax calculator 2020 Population per Metropolitan Council estimate Percentage of Total City Employees Rank Employment Edina Realty 2,304 1 1 Coldwell Banker Realty 1,870 1 2 Fairview Southdale Hospital 1,624 3 6.54% Edina Public Schools ISD #273 1,414 4 5.69% BI Worldwide 1,000 5 4.02% City of Edina 795 6 3.20% Children's Minnesota Pediatric Health 700 7 2.82% Dow Water & Process Solutions 600 8 2.41% Lund Food Holdings, Inc.500 1 9 2.01% Western National Insurance Company 420 10 1.69% Totals 11,227 28.39% 2021 Employer Sources:The City, Data Axle Reference Solutions, Ehlers written and telephone survey (April 2021), and the Minnesota Department of Employment and Economic Development. 1 Includes agents in remote offices and at retail locations and corporate offices 36 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE COMPOSITION OF POPULATION The City’s median household income is $104,244. 0%10%20%30%40%50%60%70%80%90%100% Unemployment rate Population with bachelor's degree+ Population with high school degree+ High school graduation rate Population > 65 yrs old Family households Source: datacensus.gov State of Minnesota Hennepin County Edina Average Peer Cities $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 State of Minnesota Hennepin County Edina Average Peer Cities Median Household Income 37 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE BETTER TOGETHER DATA The City of Edina is committed to being welcoming and inclusive to all who live, work and spend time in the City. Centennial Lakes Park Farmers Market 0%10%20%30%40%50%60%70%80%90%100% Average Peer Cities Edina Hennepin County State of Minnesota Source: census.gov Race White Hispanic Black or African American American Indian and Alaska Native Asian Other Two or more races 0%10%20%30%40%50%60%70%80%90%100% Average Peer Cities Edina Hennepin County State of Minnesota Source: factfinder.census.gov Language Spoken at Home English Spanish Other Indo-European Asian and Pacific Islands Other language 38 CITY OF EDINA, MINNESOTA COMMUNITY PROFILE AFFORDABLE HOUSING DATA The City has recognized the need for affordable housing. In 2018, an affordable housing position was created. Accomplishments to date include: • 389 affordable housing rental units approved (228) or completed (161). • Completed construction on Amundson Flats bringing 62 new units of 100% affordable workforce housing to the City. Closed on the sale and financing for The Sound on 76th adding an additional 70 units of affordable housing. Occupancy expected to begin in Q2 2022. • Created and implemented a First Generation homebuyer program and a Housing Rehabilitation Program. Seventeen applications were approved and six homes completed in 2021. • Continued the Emergency Rental Assistance Program and awarded $300,000 in rental assistance to Edina households in 2021. Home prices have outpaced the growth in median household income. Rent in Edina has increased from $854 in 2000 to $1,404 in 2019, remaining 24% higher than the average for Hennepin County. $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2000 (1999 dollars)2006-2010 (2010 dollars) 2013-2017 (2017 dollars) 2015-2019 (2019 dollars) Median Gross Rent Edina Hennepin County $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 Census 1990 Census 2000 ACS 2010-2014 ACS 2015-2019 Source: https://stats.metc.state.mn.us/profile/detail.aspx?c=02394621 Median Household Income Median Sales Price Strong Foundation | Livable City | Reliable Service | Better Together BUDGET SUMMARY 40 CITY OF EDINA, MINNESOTA CITY OF EDINA FUND ACCOUNTING The City is required to account for revenues and expenditures in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). GAAP allows the City to set up different funds for different purposes. The City of Edina uses two different types of funds; governmental and proprietary. The relative size of an individual governmental fund is assessed based on its proportionate share of different financial statement elements. If those financial statement elements are quantitatively significant, the City is required to report the fund as a “major” fund. The City may also choose to evaluate qualitative factors to present additional funds as “major” even when they don’t meet the quantitative definition. Edina currently has 9 major funds. All of the following funds are appropriated. Fund Descriptions 41 CITY OF EDINA, MINNESOTA FUND DESCRIPTIONS—MAJOR GOVERNMENTAL FUNDS GENERAL FUND The General Fund is the City’s primary operating fund. It records most of the City’s revenues and expenditures for core operations like Police, Fire, Community Development, and Administrative Services. The adopted General Fund Budget 2022 is $52M. This is a 7% increase from 2021 and is needed to maintain fire fighters hired with an expiring federal grant, invest in IT improvement, respond to public data requests and manage secure elections, and maintain competitive employee compensation and benefits. DEBT SERVICE FUND HRA FUND CONSTRUCTION FUND The Debt Service Fund is used for the payment of long-term debt principal and interest primarily issued on capital improvement projects and equipment improvement. The total amount of debt levied for in 2022 is $3.2M. The Housing and Redevelopment Authority was established as a separate legal entity in 1974 for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing with tools such as Tax Increment Financing (TIF). The fund includes a tax levy of $237,300. The Construction Fund is used to account for governmental fund City construction projects and finances the City’s Capital Improvement Plan (CIP) and the Equipment Replacement Program. Special assessments and state highway aid is also included in the Construction Fund. The total amount levied in 2022 for the Construction Fund is $5.2M and total construction fund expenses are $11.5M. 42 CITY OF EDINA, MINNESOTA UTILITIES This fund is used to account for the use, operation and maintenance of water pumping, treatment and distribution, sanitary sewer collection and disposal, storm water collection and recycling service to the City’s residents. The City recovers the cost of providing utility services through fees charged to residents and businesses. The 2022 expense budget for this fund is $23.5M . LIQUOR This fund accounts for the City’s off-sale liquor business, which Edina established in 1948. Today, there are three municipally owned liquor stores in Edina and delivery was introduced in 2019. Profits generated from this fund are transferred to other City funds. The 2022/23 Liquor budgeted transfer to other funds is $1M. BRAEMAR ARENA GOLF This fund was established to account for the City’s golf business when Braemar Golf Course was founded in 1964. Today the City operates Braemar Golf Course which has an 18-hole championship course with a 9-hole Academy course and driving range, an indoor golf dome, and a banquet room. The proposed budget for 2022 is approximately break-even with revenue of $4.6M. FUND DESCRIPTIONS—PROPRIETARY FUNDS This fund was created in 1966 when Braemar Arena was built. Today, there are three indoor, regulation size ice sheets as well as the “Backyard” rink that operates an outdoor sheet of ice November through March. The 2022 Arena budget is $3.5M. This is an increase of $231k from 2021 driven mainly be increased staffing and maintenance costs. Braemar Arena budgeted revenues, excluding Liquor Fund transfer in, cover approximately 85% of operating costs. The Arena has a budgeted Liquor Fund transfer of $300k and $350k, respectively for 2022 and 2023. 43 CITY OF EDINA, MINNESOTA FUND DESCRIPTIONS—PROPRIETARY FUNDS BRAEMAR FIELD EDINBOROUGH PARK CENTENNIAL LAKES PARK AQUATIC CENTER This fund was created in 2013 to account for Brae- mar Field which was created in 2014. Braemar Field measures 400 feet long, 250 feet wide and 75 feet high, and is covered with a dome from November to April. The turf field is surrounded by a track that is open to the public when practices aren’t taking place. The 2022 budget is $922k; essentially flat to prior year. Braemar Field and Braemar Arena share staff. This fund was established to account for the opera- tions of the City’s outdoor municipal pool. The Aquatic Center consists of a 50-meter lap pool with many other attractions such as body slides, surf simulator, zipline, and a zero-depth water play feature. The proposed 2022 budget is $1.2M, an increase of $84k due to staffing and maintenance costs. Edinborough Park is a fully enclosed indoor park. It contains a junior-Olympic size pool, a 250-seat Greek-style amphitheater, a running track and fitness equipment, a gym and indoor, Adventure Peak play area. The proposed budget for 2022 anticipates flat revenue of $1.4M, a slight increase to expenses for staffing and maintenance costs, for a net loss of $410k. Centennial Lakes Park offers paddle boat rentals, putting course and lawn games in the summer, ice skating in the winter, musical entertainment, event space and over a mile and a half of walking trails. Centennial Lakes Park budgeted revenues, excluding Liquor Fund transfer, cover approximately 65% of operating expenses. Centennial Lakes Park has a budgeted transfer of $350k for 2022 and 2023. 44 CITY OF EDINA, MINNESOTA FUND DESCRIPTIONS—PROPRIETARY FUNDS ART CENTER INTERNAL SERVICE FUNDS The Edina Art Center is a community art center offering classes in ceramics, metals, fibers, drawing and painting. The Center has two gallery spaces fea- turing a variety of exhibitions, and a gift shop offer- ing work by local artists. Facility conditions have required pursuit and study of alternate space to provide a pottery forward facility. Budgeted reve- nues, excluding Liquor Fund transfers, for the Art Center cover approximately 60% of operating costs. The internal service fund budget consists of four different groups: risk management, equipment operations, information technology and facilities management. The total budget for the Internal Service funds is $6.7M, an increase of 10% for increased staffing levels and capital spend. 45 CITY OF EDINA, MINNESOTA TRANSFERS Interfund transfers allow the City to reallocate assets to the funds where those assets can be used to achieve desired outcomes. In Edina, excess income generated by the three municipal liquor stores has historically been transferred to other funds and reinvested in the community. This tradition is expected to continue through 2023, as shown on the next two pages. Budgeted transfers in 2022 include: 1. $3M in total transfers out of the Construction Fund to the Debt Service Fund to provide financing for principal and interest payments for special assessment bonds and equipment certificates. 2. $1M in total transfers from the Liquor Fund to Braemar Arena, Edina Art Center and Centennial Lakes Park to help finance the operation of these funds. 3. Within the Utilities Fund is the $100,000 transfer to the Construction Fund as well as utility contributions to the various City properties. To track the total cost of a facility, utilities are charged to city-owned facilities, but used for informational purposes only and money is not moved from those funds to the Utilities Fund. Transfers Construction Utilities Liquor Total Transfers and Contributions in: General Fund -$ 150,000$ -$ 150,000$ Construction - 100,000 - 100,000 Debt Service 2,979,563 - - 2,979,563 Liquor - 3,500 - 3,500 Aquatic Center - 15,000 - 15,000 Golf Course - 50,550 - 50,550 Arena - 40,000 300,000 340,000 Braemar Field - 950 - 950 Art Center - - 350,000 350,000 Edinborough - 11,000 - 11,000 Centennial Lakes - 70,000 350,000 420,000 Total 2,979,563$ 441,000$ 1,000,000$ 4,420,563$ 2022 Transfers and Contributions Out: 46 CITY OF EDINA, MINNESOTA TRANSFERS Budgeted transfers in 2023 include: 1. $2.8M in total transfers out of the Construction Fund to the Debt Service Fund to provide financing for principal and interest payments for special assessment bonds and equipment certificates. 2. $1M in total transfers from the Liquor Fund to Braemar Arena, Edina Art Center and Centennial Lakes Park to help finance the operation of these funds. 3. Within the Utilities Fund is the $100,000 transfer to the Construction Fund as well as utility contributions to the various City properties. In order to track the total cost of a facility, utilities are charged to city-owned facilities, but it is for informational purposes only and money is not moved from those funds to the Utilities Fund. In addition to budgeted transfers, the City Council will periodically authorize interfund transfers mid-year. The most common example of this is when the General Fund has an unassigned fund balance at year-end, according to the Fund Balance Policy. Typically, this amount is known when the annual audit is finished around June, and the process to reach a decision on where to allocate this money starts then. The Fund Balance Policy also states that, to the extent possible, such excess funds should be transferred to the Construction Fund to support capital improvements and equipment. In October 2021, the City Council approved the transfer of $4.5M of 2020 surplus to the Construction Fund ($4.2M) and the Edina Housing and Redevelopment Authority ($300k) for housing assistance. Centennial Lakes Park Construction Utilities Liquor Total Transfers and Contributions in: General Fund -$ 157,500$ -$ 157,500$ Construction - 100,000 - 100,000 Debt Service 2,816,752 - - 2,816,752 Liquor - 3,750 - 3,750 Aquatic Center - 16,000 - 16,000 Golf Course - 53,600 - 53,600 Arena - 42,000 350,000 392,000 Braemar Field - 1,000 - 1,000 Art Center - - 300,000 300,000 Edinborough - 12,000 - 12,000 Centennial Lakes - 75,000 350,000 425,000 Total 2,816,752$ 460,850$ 1,000,000$ 4,277,602$ 2023 Transfers and Contributions Out: 47 CITY OF EDINA, MINNESOTA LEGAL DEBT MARGIN Minnesota laws limit the amount of debt the City may issue to 3% of the assessor’s market value of the City’s tax base. The assessor’s 3% market value less net debt is referred to as the legal debt margin. The following table shows the legal debt margin at December 31, 2020. According to this calculation, the City has the ability to issue over $349M in additional debt before reaching the statutory limit. This level of capacity to issue new debt means that the City is in a secure financial position. Edina currently holds a triple A bond rating from both Moody’s and S&P. The City had four types of bonded debt outstanding on Dec. 31, 2020: general obligation (GO) bonds, special assessment bonds, public project revenue bonds and enterprise revenue bonds. GO bonds are payable from general property taxes. The special assessment bonds include permanent improvement revolving (PIR) bonds that are payable from special assessments with any deficiency to be provided for by general property taxes. Public project revenue bonds are payable from annual appropriation lease payments received from the City pursuant to a lease between the Edina Housing and Redevelopment Authority and the City. Enterprise revenue bonds are payable primarily from revenue from the City’s enterprise facilities with any deficiency to be provided for by general property taxes. Edina’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities in the table on the following page, which projects changes in debt levels for the next two years. Debt Service Market value (after fiscal disparities)12,785,797,501$ Debt limit (3% of market value)383,573,925 Debt applicable to limit: General obligation bonds 17,725,000 Public project revenue bonds 16,245,000 Total debt applicable to limit 33,970,000 Legal debt margin 349,603,925$ Legal Debt Margin Calculation for Fiscal Year 2020 48 CITY OF EDINA, MINNESOTA DEBT SERVICE In addition to principal payments in the chart above, the city also pays interest on outstanding debt. Principal and interest payments are sometimes referred to collectively as debt service. Debt service to maturity on all outstanding debt as of December 31, 2020 is shown below. Year Ended Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Total P&I 2021 2,505,000 561,700 1,145,000 505,649 3,546,000 698,772 7,829,000 1,520,719 15,025,000 3,286,840 18,311,840 2022 1,670,000 482,000 1,185,000 472,949 2,035,000 622,645 6,683,000 1,286,324 11,573,000 2,863,918 14,436,918 2023 1,735,000 419,050 1,220,000 438,951 1,862,000 560,201 5,251,000 1,090,251 10,068,000 2,508,453 12,576,453 2024 1,800,000 353,550 1,255,000 400,171 1,544,000 504,686 5,057,000 910,199 9,656,000 2,168,606 11,824,606 2025 1,870,000 286,775 1,295,000 360,980 1,580,000 456,261 4,599,000 741,040 9,344,000 1,845,056 11,189,056 2026 1,935,000 218,675 1,335,000 321,335 1,628,000 409,426 4,162,000 588,721 9,060,000 1,538,157 10,598,157 2027 2,005,000 155,133 1,000,000 285,006 1,685,000 360,324 4,290,000 440,961 8,980,000 1,241,424 10,221,424 2028 2,060,000 97,350 1,030,000 251,566 1,736,000 309,784 3,343,000 306,554 8,169,000 965,254 9,134,254 2029 1,730,000 41,144 875,000 220,088 1,670,000 257,504 2,671,000 200,405 6,946,000 719,141 7,665,141 2030 415,000 7,263 905,000 191,163 1,615,000 204,856 2,177,000 117,523 5,112,000 520,805 5,632,805 2031 - - 935,000 160,678 1,450,000 154,981 1,425,000 62,319 3,810,000 377,978 4,187,978 2032 - - 965,000 128,013 1,505,000 107,569 715,000 32,775 3,185,000 268,357 3,453,357 2033 - - 1,000,000 93,625 995,000 68,281 735,000 11,025 2,730,000 172,931 2,902,931 2034 - - 1,030,000 57,456 700,000 42,091 - - 1,730,000 99,547 1,829,547 2035 - - 1,070,000 19,394 555,000 22,163 - - 1,625,000 41,557 1,666,557 2036 - - - - 390,000 6,938 - - 390,000 6,938 396,938 2037 - - - - 30,000 300 - - 30,000 300 30,300 2038 - - - - - - - - - - - 17,725,000 2,622,640 16,245,000 3,907,024 24,526,000 4,786,782 48,937,000 7,308,816 107,433,000 18,625,262 126,058,262 Total CityRevenue BondsPublic Project RevenueGeneral Obligation Bonds Special Assessment Bonds 12/31/2021 12/31/2022 12/31/2023 Balance Additions Reductions Balance Additions Reductions Balance Governmental activity debt: General obligation 15,220,000$ -$ (1,670,000)$ 13,550,000$ -$ (1,735,000)$ 11,815,000$ Special Assessment Bonds 26,460,000 1,768,370 (2,035,000) 26,193,370 2,813,402 (1,862,000) 27,144,772 TIF Bonds 7,545,000 - - 7,545,000 - (250,000) 7,295,000 Public project revenue 15,100,000 - (1,185,000) 13,915,000 - (1,220,000) 12,695,000 Subtotal 64,325,000 1,768,370 (4,890,000) 61,203,370 2,813,402 (5,067,000) 58,949,772 Business-type activity debt: Enterprise revenue 41,108,000 11,500,000 (6,683,000) 45,925,000 2,100,000 (5,251,000) 42,774,000 Citywide Grand Total 105,433,000$ 13,268,370$ (11,573,000)$ 107,128,370$ 4,913,402$ (10,318,000)$ 101,723,772$ 20232022 49 CITY OF EDINA, MINNESOTA DEBT SERVICE The City sets annual property tax levies to pay debt service on the debt types that are payable from general property taxes. The debt service levies are shown below, and are separated by purpose. Edina Fire Station 1 Budget Budget Debt Service Tax Levies 2019 2020 2021 2022 2023 City Hall 952,000$ 952,000$ -$ -$ -$ Gymnasiums 390,000 391,000 392,000 392,000 392,000 Fire Station #1 406,000 402,000 402,000 403,000 403,000 Public Works Facility 1,695,000 1,688,000 1,695,000 1,269,000 1,269,000 Braemar Field 1,168,900 1,163,300 1,162,400 1,168,000 1,166,000 Total 4,611,900$ 4,596,300$ 3,651,400$ 3,232,000$ 3,230,000$ 50 CITY OF EDINA, MINNESOTA The City of Edina has diverse sources of revenue. The City collects property taxes, franchise taxes and tax-increments, which combined represent 41% of the City’s annual revenue. Property taxes account for $45.4M and $48M of the City’s budgeted revenue in 2022 and 2023, respectively. The many parks enterprise facilities in the City generate revenue, in addition to the Utility Fund and Liquor Fund. Special assessments and licenses and permits also contribute to the City’s revenue. Other sources include aid from federal and state government agencies, police fines, investment income, ambulance charges, park rentals and program registrations, donations, advertising sales, revenue earned from providing dispatch services to other communities, and many others. Budget Factors The City of Edina currently enjoys a favorable economic environment and local indicators point to continued stability. The region, noted for strong retail and professional sectors, has enjoyed considerable redevelopment in recent years and the employment base is populated with a healthy combination of retail, professional and light industrial businesses. Because of that , the City does not rely solely on a single sector of employment and is able to weather fluctuations in national and international economic changes better than most municipalities. Following is a discussion of the City’s total revenues and expenses and key budget considerations. This is directly fol- lowed by further narrative on the City’s economic outlook which contributes to the overall stability of the budget. Revenues Taxes 38% Utility fees 21% Liquor sales 11% All other revenue 10% Park & Recreation sales 9% Licenses and permits 4% Federal & State aid 4% Special assessments 3% Edina's Revenue Sources 51 CITY OF EDINA, MINNESOTA BUDGET FACTORS Special assessments— Includes assessments levied against benefitting properties for various infrastructure improvements and street reconstruction projects. Historically, benefitting properties have been assessed the full cost of the street repairs. In 2021, the City Council approved an amendment to the City’s Special Assessment Policy to phase out assessments over a 16 year period in favor of a tax levy. 2022 is the first year of this new levy. The City’s Utility Fund typically pays for costs related to underground water and sewer infrastructure as well as curbs and gutters. Enterprise operating revenue—This is the largest source of City revenue. However, there are many smaller sources of revenue that contribute to this category. The largest part of enterprise operating revenue ($27.6M in 2022) comes from the utility fees for sale of water, sewer, stormwater and recycling services. The second largest part is sale of “off-sale” liquor sales at the three municipally owned liquor stores, which are budgeted to combine for $15.1M in annual sales in 2022. Operating revenue is also collected at the Aquatic Center ($1.1M), Braemar Golf Course ($4.5M), Braemar Ice Arena ($2.6M), Art Center ($500K), Edinborough Park ($1.4M) and Centennial Lakes Park ($820K). The City’s financial advisor prepared an update to a 2018 long-term rate study in 2021 that recommends 5% annual increases to water and sewer rates, and an 8% increase to storm sewer rates in 2022. The rate increases are primarily to cover increasing costs of rebuilding, maintaining, and improving existing infrastructure. The stormwater increases at a higher rate to better align with increased capital costs associated with the storm sewer system. These increases will ensure that Enterprise Funds are maintained in a healthy and sustainable manner. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Edina License and Permit History Actual Budget Licenses and permits—License and permit revenue is historically one of the most volatile revenue categories for the City, so the City’s practice has been to budget for this revenue conservatively. License and permit revenue is col- lected primarily from builders and developers for residential or commercial building projects, but also includes smaller amounts for a variety of City-issued licenses, including liquor licenses, restaurant licenses, etc. The chart below shows the history of license and permit revenue collected in the General Fund. Budget was $5M for 2020/21, increased to $5.4M for 2022/23. 52 CITY OF EDINA, MINNESOTA Federal & State Aid – To respond to and recover from the COVID-19 pandemic, the City received and spent $3.9M in federal CARES Act funding in 2020. In 2021, the federal Treasury Department allocated the City $4.9M from the American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Funds. At the time of the 2022 budget development, the City had not yet approved a spending plan for this allocation; therefore, the $4.9M is not represented in the financial reports included in this budget document. In September 2021, City Council approved a spending plan of approximately $2.5M, or 50% of the City’s total allocation, for spending in the priority spending areas provided by the federal government, including: supporting public health response, addressing the negative economic impacts cause by the public health emergency, serving the hardest-hit groups in our community, and investing in broadband access. The City anticipates receiving the other half of the ARPA allocation in mid-2022. Fine & Forfeitures – For the 2022/23 budget, the fines & forfeiture budget has been reduced $300k to be comparable with 2020/21 collections. Transfers – In April 2020, City Council approved the creation of the Budget Stabilization Fund to offset any potential budget shortfalls from COVID-19. This fund was created from prior year budget surplus amounts. BUDGET FACTORS Expenses $0 $20 $40 $60 $80 $100 $120 $140 $160 2020 Actuals 2021 Budget 2022 Budget 2023 BudgetMillions Cost of goods sold Personal services Contractual services Commodities Internal services Equipment Capital outlay Depreciation Debt service Other expense Transfers/Contributions 53 CITY OF EDINA, MINNESOTA Salary & Benefits – Salary and benefits combined increase an average of 5% annually. This includes changing cost in health insurance and a competitive compensation package to attract and retain skilled staff. The budgeted salary increase is 2% and 3% for 2022 and 2023, respectively. However, the City is not immune to staffing shortages and increasing hourly wages in the market as a result of the COVID-19 pandemic, and therefore, has budgeted for additional increases to hourly wages to be a competitive employer in the market. Cost of goods for resale – The COVID-19 pandemic has touched so many areas of the organization including the cost of inventory. Product costs have increased due to availability from shipping delays, staffing shortages impacting availability of delivery drivers, and cost of raw ingredients in the final product. It is unclear how long product shortages, staffing shortages and inflationary prices may continue. For 2021, the City did not pass on any price increases at the liquor stores, but price increases will be needed to maintain profitability and support of other Parks and Recreation enterprise funds. On the Horizon Local Option Sales Tax – The City of Edina received state legislative approval to propose using a Local Option Sales Tax to fund infrastructure improvements at parks with regional significance. In November 2022, Edina residents will vote on whether to impose a local sales tax to raise revenue and authorize the City to issue bonds supported by the sales tax revenue to fund approximately $40M of improvements at Fred Richards Park and Braemar Park and Arena. BUDGET FACTORS 54 CITY OF EDINA, MINNESOTA Major industries with headquarters or divisions within Edina include MHealth Fairview Southdale Hospital, Southdale Center and Galleria regional malls, BI Worldwide, Lund Food Holdings and Edina Realty. Edina’s robust business community is based in three primary nodes: 50th & France, Greater Southdale and a professional/industrial district adjacent to Highway 100. Numerous employers in the medical, retail, service, manufacturing and distribution industries are located in Edina. Edina is home to approximately 50,000 jobs that are expected to remain stable over the coming years. The City also contains at least 2.5M square feet of retail space plus an amount more than twice that of general commercial and industrial space. As shown below, the Minnesota Department of Employment and Economic Development estimates that Edina’s unemployment rates are consistently lower than state and national rates. Except for the unprecedented spike in 2020 due to COVID-19, Edina’s unemployment rate has remained under 4% since mid-2013 (not seasonally adjusted). Economic Outlook 0 2 4 6 8 10 12 14 16 Oct-11Apr-12Oct-12Apr-13Oct-13Apr-14Oct-14Apr-15Oct-15Apr-16Oct-16Apr-17Oct-17Apr-18Oct-18Apr-19Oct-19Apr-20Oct-20Apr-21Unemployment Rates Edina unemployment MN unemployment US unemployment 55 CITY OF EDINA, MINNESOTA ECONOMIC OUTLOOK In addition to commercial and industrial redevelopment, the City of Edina continues to remain relevant and desirable to current and new residents. Edina has long been known for its residential housing stock, attractive neighborhoods and high quality of life. Although the emphasis has changed over the years from exclusively single-family housing to a more balanced mix of single and multi-family housing types, the City’s concern for overall quality in residential development remains a top priority. The below chart shows the number of inspections and the related permit valuation: Property values in Edina were more stable than much of the rest of the state and country during the past several years. While the total market value and tax capacity began to fall around 2009, the declines were more moderate compared to some other communities. Beginning in 2013, the values trend in the other direction, with continued increases estimated through 2022 according to the preliminary tax capacity reports from Hennepin County. - 5 10 15 20 25 - 50 100 150 200 250 300 350 400 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 # of Bldg Inspections/permits (000's)Permit Valuation (millions)Commercial Property Single Family Residence Multi Family Residence # of Blding Inspections # of Bldg Permits 56 CITY OF EDINA, MINNESOTA Tax capacity is a unique property taxing system that is equivalent to multiplying the taxable market value of a property by its relevant class rate. The local tax rate of a taxing jurisdiction is determined by dividing the jurisdiction’s levy by the jurisdiction’s taxable net tax capacity. Rates often move in the opposite direction of tax capacity as shown in the chart above. Edina’s tax capacity rate is the lowest among our geographical neighboring communities. The City’s tax capacity has grown in recent years and is expected to grow in the coming years. The net tax capacity for the City of Edina grew by 2.8% from 2020 to 2021 and 7.6% from 2021 to 2022 after adjusting for tax–increment valuation and fiscal disparities contribution and distribution. The estimated market value of the City of Edina increased by 3.6% and 3.4% during the same time periods, from $12.9B in 2020 to $13.8B in 2022. This growth in estimated market value and the tax capacity of Edina can be primarily attributed to redevelopment activities taking place in the Southdale area, the decertification of the Southdale 2 TIF District, and several large scale multi-family residential redevelopment projects. A major source of revenue for the City of Edina directly related to economic conditions is the receipt of licenses and permits from builders and developers of residential and commercial buildings. The City budgets conservatively due to the volatile nature of the revenue source. Since 2016, the City has budgeted an average of $5M annually for license and permit revenue. Actual revenue has historically exceeded the budgeted amount. The City has budgeted an increase of 4% for 2022. Like most large employers, the City buys many types of insurance; including property, auto, liability, worker’s compensation, and health insurance. And, insurance coverage and benefits provided to employees are a significant budget driver for the city. As such, the City periodically surveys the market to ensure the rates paid are competitive for the coverage and services expected. However, in areas like health insurance, every provider is raising prices and all employers are experiencing similar price pressures. The City mitigates some of the pressure by purchasing health insurance together with a group of other cities to increase collective purchasing power. Also, the City shares the cost of health insurance with our employees, who sometimes must make contributions to their monthly premiums, depending on their benefit selections. ECONOMIC OUTLOOK 20% 22% 24% 26% 28% 30% $- $20 $40 $60 $80 $100 $120 $140 $160 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022MillionsTax Capacity & Tax Capacity Rate Tax capacity Tax capacity rate 57 CITY OF EDINA, MINNESOTA Long-Term Tax Levy Projection The ten-year budget model was built to assist in long-term strategic planning and to detect any future structural funding and property tax levy fluctuations. The property tax levy does not support the proprietary funds; thus, proprietary funds are excluded from this projection. A separate rate study is performed every three years which builds a projection for the utility funds. As with any forecast, it is built upon assumptions and new news will change the future actual budgets. This section looks at the property tax levy projections and the assumptions made in developing these projections. Revenues Licenses & Permits are dependent upon construction and remodeling projects in the community. Building permit revenue has been strong in the past five years; however, a downturn in the economy could significantly impact this line item. The 2022 budget for total General Fund licenses and permits is $5.4M and is conservatively held flat in future years. Other revenues (e.g., franchise fees, fines & forfeitures, etc.) are expected to remain relatively flat and are projected at 0% growth. Construction Fund levy is comprised of three pieces – capital improvement, equipment replacement for General Fund departments and the new Street Special Levy. Capital Improvement — The City is focused on maintaining its existing buildings and infrastructure. In order to increase funding to keep the City’s existing infrastructure in good working order, City Council has agreed to increase the Construction fund tax levy as capital project debt levies expire. This will increase the capital improvement budget from $300k in 2019 to $4M in 2029 and out years. Equipment Levy — The equipment replacement levy is projected at a 5% annual growth to cover inflationary cost of replacing the General Fund equipment (e.g., police cars, snow plows, etc.). Street Special Levy — Historically, the City has used special assessments to fund neighborhood street reconstruction. This levy enables the City to move to street reconstruction being included in general property taxes. Assessed valuation is assumed to increase at 3.77% annually based on the average of the past three years. Median Value Home is assumed to increase 2.5% annually based on average of the past three years. Long-term Planning 58 CITY OF EDINA, MINNESOTA LONG TERM PLANNING Expenses Salary & Benefits are projected at an annual increase of 5%. This percentage is based upon a five-year historical average and includes new positions, market rate adjustments, annual progression or step increases, and benefit costs. Contractual services and Commodities are projected to increase at an annual rate of 3%, which is also based on a five-year historical average. Tax Levy Projection The model includes our two year budget and eight future years of projection for a total outlook of ten years. Based on the above revenue and expense assumptions, the annual tax levy increase is expected to remain at about 5%. The projection will be reviewed annually for changes to assumptions. Budget Budget Projection Projection Projection Projection Projection Projection Projection Projection 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 General Fund Levies General Operating Levy 36,708,036$ 38,947,298$ 41,335,122$ 43,512,719$ 46,115,128$ 48,517,630$ 51,355,766$ 54,005,345$ 57,102,462$ 60,023,511$ Increase From Prior Year (%)8.01%6.10%6.13%5.27%5.98%5.21%5.85%5.16%5.73%5.12% Debt Service Fund Levies Gymnasium Debt Service 392,000 392,000 392,000 398,000 - - - - - - Fire Station Debt Service 403,000 403,000 403,000 406,000 403,000 404,000 - - - - Public Works Facility Debt Service 1,269,000 1,269,000 1,508,000 1,512,000 1,508,000 1,506,000 1,506,000 456,750 - - Sports Dome 1,168,000 1,166,200 1,168,700 1,165,100 1,166,100 1,166,400 1,164,800 1,166,400 1,167,000 1,165,400 Debt Service Fund Subtotal 3,232,000 3,230,200 3,471,700 3,481,100 3,077,100 3,076,400 2,670,800 1,623,150 1,167,000 1,165,400 Increase From Prior Year (%)-11.49%-0.06%7.48%0.27%-11.61%-0.02%-13.18%-39.23%-28.10%-0.14% Construction Fund Levies Capital Improvement Plan Levy 2,000,000 2,000,000 2,000,000 2,000,000 2,400,000 2,400,000 3,000,000 4,000,000 4,000,000 4,000,000 Equipment Levy 2,240,000 2,350,000 2,470,000 2,590,000 2,720,000 2,860,000 3,000,000 3,150,000 3,310,000 3,480,000 Street Special Levy 950,000 1,210,400 1,480,840 1,761,600 2,053,000 2,355,400 2,669,000 2,994,200 3,331,400 3,680,900 Construction Fund Subtotal 5,190,000 5,560,400 5,950,840 6,351,600 7,173,000 7,615,400 8,669,000 10,144,200 10,641,400 11,160,900 Increase From Prior Year (%)25.67%7.14%7.02%6.73%12.93%6.17%13.84%17.02%4.90%4.88% HRA Fund Levies HRA Operating Levy 237,300 244,400 251,700 259,300 267,100 275,100 283,400 291,900 300,700 309,700 HRA Fund Subtotal 237,300 244,400 251,700 259,300 267,100 275,100 283,400 291,900 300,700 309,700 Increase From Prior Year (%)2.99%2.99%2.99%3.02%3.01%3.00%3.02%3.00%3.01%2.99% Total Property Tax Levy 45,367,336$ 47,982,298$ 51,009,362$ 53,604,719$ 56,632,328$ 59,484,530$ 62,978,966$ 66,064,595$ 69,211,562$ 72,659,511$ Increase From Prior Year (%)7.97%5.76%6.31%5.09%5.65%5.04%5.87%4.90%4.76%4.98% 59 CITY OF EDINA, MINNESOTA CITY OF EDINA EMPLOYEES BUDGET The City highly values its staff members and realizes how critical they are in delivering the high level of services Edina residents have come to know. The City’s annual payroll constitutes approximately 38% of the consolidated budget and is over $48M per year when benefits are included. According to a Quality of Life survey conducted in 2021, 87% of Edina residents rated the overall quality of services provided by the City as “Excellent” or “Good”. The full-time (FT) employee count has increased by seven from 2021. These new positions include additional fire positions, an assistant city forester, information technology, and an additional position for elections managemet and faster respone to public information requests. In addition to FT staff, the City employs a significant number of part-time (PT) employees, including many on a seasonal basis. The total number of City employees is constantly changing, as depicted on the chart below. The chart below is based upon a three-year average. Over the course of a typical year, the City will employ about 1,000 people. City of Edina Employees - 100 200 300 400 500 600 700 800 900 City Employees During a Typical Year 60 CITY OF EDINA, MINNESOTA CITY OF EDINA EMPLOYEES Budgeted Full-time Employees by Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Authorized 2022/2023 Administration 4.85 4.85 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8/8 General Fund 4.85 4.85 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 Technology Services 5.00 5.00 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9/9 Internal Services 5.00 5.00 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 Communications 6.15 6.15 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 7/7 General Fund 6.15 6.15 6.00 6.00 6.00 6.00 6.80 6.80 7.00 7.00 Internal Services - - - - - - 0.20 0.20 - - Community Development 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 13/13 General Fund 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 HRA Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Engineering 13.00 14.00 15.10 15.10 16.10 16.10 26.00 27.00 26.00 26.00 26/26 General Fund 10.00 11.00 11.00 11.00 12.00 12.00 17.30 17.30 15.00 15.00 PACS Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Utilities Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.35 1.35 1.00 1.00 CAS Fund - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Construction Fund 1.00 1.00 1.10 1.10 1.10 1.10 1.00 1.00 - - Internal Services - - - - - - 4.35 5.35 8.00 8.00 Finance 7.00 7.00 6.00 6.00 7.00 7.00 7.00 8.00 9.00 9.00 9/9 General Fund 6.00 6.00 5.00 5.00 6.00 6.00 6.00 6.00 7.00 7.00 Utilities Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Liquor Fund - - - - - - - - - - Fire Protection 43.60 44.60 46.35 46.35 46.25 50.25 65.00 65.00 68.00 68.00 68/68 General Fund 42.85 43.85 45.90 45.90 45.80 49.80 63.35 63.35 66.55 66.55 Utilities Fund 0.75 0.75 0.45 0.45 0.45 0.45 1.65 1.65 1.45 1.45 Human Resources 4.00 4.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 6/6 General Fund 4.00 4.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 Internal Services - - - - - - 1.00 1.00 1.00 1.00 Parks & Recreation 63.00 63.00 60.50 60.50 63.95 63.95 65.00 66.00 67.00 67.00 67/67 General Fund 23.65 23.65 25.05 25.05 25.30 25.30 24.65 24.65 24.00 24.00 Aquatic Center 0.55 0.55 0.60 0.60 0.70 0.70 0.73 0.73 0.33 0.33 Golf Course 12.00 12.00 8.05 8.05 9.00 9.00 11.18 11.18 12.17 12.17 Arena 5.00 5.00 4.85 4.85 6.25 6.25 6.03 6.03 6.58 6.58 Sports Dome - - 0.15 0.15 1.00 1.00 1.08 1.08 0.53 0.53 Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.08 2.08 2.08 2.08 Edinborough Park 5.80 5.80 5.80 5.80 5.65 5.65 5.75 5.75 6.80 6.80 Centennial Lakes 5.00 5.00 5.00 5.00 5.05 5.05 5.03 5.03 5.03 5.03 Liquor Fund 9.00 9.00 9.00 9.00 9.00 9.00 8.50 9.50 9.50 9.50 Police Protection 72.50 70.50 72.55 72.55 76.55 76.55 77.00 78.00 78.00 78.00 78/78 General Fund 72.50 70.50 72.55 72.55 76.55 76.55 77.00 78.00 78.00 78.00 Public Works 52.90 52.90 52.50 52.50 52.15 52.15 45.00 46.00 46.00 46.00 46/46 General Fund 26.70 26.70 25.40 25.40 23.30 23.30 18.60 18.60 24.00 24.00 Utilities Fund 15.20 15.20 16.85 16.85 18.65 18.65 19.05 20.05 15.00 15.00 Internal Services 11.00 11.00 10.25 10.25 10.20 10.20 6.60 6.60 7.00 7.00 General Fund - Park Maintenance - - - - - - 0.55 0.55 - - Parks & Recreation Enterprise Funds - - - - - - 0.20 0.20 - - Other - - - - - - - - - - Total 285.00 285.00 287.00 287.00 297.00 301.00 324.00 330.00 337.00 337.00 337/337 Source: City of Edina Finance Department 61 CITY OF EDINA, MINNESOTA Capital The City develops a six-year Capital Improvement Plan (CIP) every two years to provide a framework for planning the preservation and expansion of infrastructure, facilities and equipment. The most recent CIP adopted by the City Council was for the years 2021-2026, available at https://www.EdinaMN.gov/273/Finance. The City’s threshold for projects or equipment to be included in the CIP is $20,000. Projects or equipment less than that are part of the operating budget. The preparation of a long-range plan requires City staff to make material estimates about project scope, costs of labor and materials, and other items. Generally, the estimates for earlier years are more precise than later years. Actual results can differ significantly from such estimates. Beginning with this CIP, the City implemented a formal departmental scoring process that standardizes priorities and functions across departments. The departmental scoring is high, medium, low defined as: High = Critical Medium = Important as funding available Low = Project can wait Additionally, an asset preservation project was created to address immediate facility repair needs. Facility projects will be evaluated semi-annually based on the following: • Health, Safety & Regulatory Compliance – mitigation of regulatory/ legal compliance, public health risk or safety hazard if present • Immediate Asset/Infrastructure Preservation – asset is not functioning or at critical point • Expansion/Level of Service – impact on level of service ranging from significant improvement in an existing/new service to avoidance of a decline in service For both the CIP and the operating budget, it is the responsibility of City staff to gather information and develop a recommendation for the City Council to consider. Council’s role is to guide City staff through the process and to formally adopt a CIP near the end of every even-numbered year. The following illustrates City Council’s oversight through the CIP process: 62 CITY OF EDINA, MINNESOTA CAPITAL IMPROVEMENTS For projects prioritized in the first two years of the adopted CIP, City staff generally plan, develop and promote the project until a contract is ready to be signed or a purchase over $20,000 is ready to be made. These types of contracts/purchases receive final approval by the City Council. The City recognizes that circumstances and priorities can change over time and in some cases may cause the timing of some projects to be moved after adoption of the CIP. These changes are considered by the City Council on a case-by-case basis. Buildings, $2,766 , 11% Equipment & Vehicles, $2,749 , 10% Infrastructure, $20,425 , 77% Land, $75 , 0% Parks, $190 , 1%Technology, $225 , 1% 2022 CIP -$26,428 ($'s in 000's) Buildings, $2,199 , 9% Equipment & Vehicles, $2,279 , 9% Infrastructure, $19,895 , 79% Land, $-, 0% Parks, $300 , 1% Technology, $613 , 2% 2023 CIP -$25,286 ($'s in 000's) 63 CITY OF EDINA, MINNESOTA CAPITAL IMPROVEMENTS Significant recurring projects include street reconstruction, pedestrian/bike improvements and equipment replacement. Street reconstruction—Projects total $11.95M and $13.45M in 2022 and 2023, respectively, and are funded principally through special assessments and utility fees. Significant projects for 2022-23 are along Blake Road, Morningside, Prospect Knolls, and Southdale. Pedestrian/bike improvements—Projects total $922,731 and $863,420 for 2022 and 23, respectively, and are funded primarily through the City’s Pedestrian and Cyclist Safety (PACS) Fund. Pedestrian/bike improvement projects for 2022-23 include France Avenue sidewalk, McCauley Trail shared-use path and Hwy 169/Braemar Blvd shared-use paths. Equipment replacement— Approximately $3.7M of equipment is expected to be replaced in 2022 and 2023. Equipment replacement for General Fund departments is funded by the equipment levy and resides in the Construction Fund. The equipment includes police squad cars, ambulance fleet and public works equipment. Other projects include: Facility improvements—In 2018, the City completed a three year review process of 117 buildings to create a master database of physical buildings, plumbing, mechanical systems, fixtures and equipment to utilize in optimizing long-term financial resources and sustainability goals. The 2022-23 Capital Plan funds $3.9M ($1.8M in 2022 and $2.1M in 2023) for facility improvements to City Hall, liquor stores, facility efficiency upgrades and asset preservation is funded through the Construction Fund, the Liquor fund and the Conservation and Sustainability fund. One of the City’s Budget Pillars is “Strong Foundation” meaning that City infrastructure, facilities, technology and equipment meets community needs now and in the future. The 2022-23 operating budget helps to accomplish that. Replacement of Public Safety 911 Dispatch and Records System—This next generation system from Tyler Technologies will provide significantly enhanced capabilities and efficiencies to our public safety operations. This includes greatly expanded capabilities for collecting and analyzing data about crime trends, resource utilization, and community relations including demographic stop data. The new software will also allow us to leverage the substantial advancements seen in recent years around GIS and mobile computing technologies. This system will allow us to provide additional public safety software services to the City of Richfield further enhancing our dispatch services partnership while offsetting some of our operational expenses. This project was approved in our Capital Improvement Plan (Project # 17-054) and including the Richfield Amendment is within the planned budget. Ongoing operations costs are within budget being equivalent to the software we are replacing. 64 CITY OF EDINA, MINNESOTA CAPITAL IMPROVEMENTS New Paint Water Tower Morningside Flood Reduction—The City of Edina’s Comprehensive Water Resources Management Plan (CWRMP), published in July 2018 identified the Morningside neighborhood as an area with a significant number of structures at risk of flooding. This neighborhood is also planned for street reconstruction in 2022 and 2023 (reference (2)). Given both the need to reduce flood risk and the street reconstruction opportunity, the City began planning for a flood risk reduction project. Barr Engineering evaluated potential options for flood risk reduction in the Morningside neighborhood within the City of Edina. The goal was to provide City staff and City Council with the information needed to make decisions in 2021 aimed at implementing the most economical, advantageous, and optimized flood risk reduction project in the Morningside neighborhood in coordination with the planned street reconstruction in 2022 and 2023. Following an extensive community engagement to address flood risk reduction options in the Morningside neighborhood, the City Council approved a budget modification to CIP Project No. 19-341 to include estimated design professional services costs in 2021 of $1.4M, construction professional services in 2022 of $0.6M, capital expenses of $9.5M in 2022, and $0.5M in 2023 Lift Station 6—This project proposes to replace Lift Station 6 (LS6) with a new lift station. LS6 is a key sanitary sewer system component located near 72nd St West and Oaklawn Avenue that serves about two-thirds of the City for trunk sanitary sewer. The station was built in the 1950’s. The prior 2019 recommendation was for major refurbishment of the station for $900k. Staff assessed the asset condition for LS6 in preparation for the project and recommended replacement. Due to the age of the asset, a major refurbishment was expected to cost >50% of the replacement cost of the facility for only a 15-20 year extension in lifecycle. The new facility will provide a 60 year design life at a reduced lifecycle cost from the refurbishment option. Funding for this project will come from the Utility Fund. Strong Foundation | Livable City | Reliable Service | Better Together DEPARTMENTS 66 CITY OF EDINA, MINNESOTA A DMINISTRATION DEPARTMENT Lisa Schaefer, Assistant City Manager Lschaefer@EdinaMN.gov 952-826-0416 DEPARTMENT OVERVIEW The Administration Department supports the work of the City Council and leads initiatives with city-wide impacts including strategic planning, performance management and measurement, boards and commissions, community engagement, race and equity, and promotion of intergovernmental partnerships. The Department provides staff support to the City’s Human Rights & Relations Commission and Human Services Task Force. MAJOR SERVICE AREAS  City Council support  Advisory Boards and Commissions  Elections administration  Records management  Strategic planning  Community engagement  Intergovernmental partnerships  Legal services  Race & Equity DEPARTMENT ORGANIZATIONAL CHART City Manager Assistant City Manager Community Engagement Manager Executive Assistant City Clerk Division Race and Equity Manager 67 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT 2022-2023 DEPARTMENT GOALS  Complete final report of the 2018 Racial Equity Implementation Plan and operationalize race & equity goals into city-wide work plans.  Implement transparency tools and dashboards for easier public access to City performance measures and budget information.  Re-assess City Hall space and security needs for past-pandemic service delivery. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Develop and implement COVID-19 preparation and response plans for City operations.  Launch web site and hotline for to connect Edina residents, seniors, and businesses to resources for dealing with affects of COVID-19.  Conduct first state presidential primary election.  Dedication of Yancey Park to honor the contributions of the Yancey family to the history of Edina. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who felt they could have a say about the way things are run in the community in the Quality of Life Survey 68% No Survey 62% Percentage of resident who favorably rated the City's ability to treat all resident fairly in the Quality of Life Survey 70% No Survey 68% 68 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 963,832$ 1,031,424$ 812,219$ 914,157$ 951,592$ Contractual services 762,035 814,281 784,339 1,052,964 1,091,859 Commodities 68,086 18,326 83,800 163,828 168,323 Internal services 103,377 119,088 127,116 130,443 133,805 Total 1,897,330$ 1,983,119$ 1,807,474$ 2,261,392$ 2,345,579$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Administration Expenditures Personal services 45% Contractual services 44% Commodities 5%Internal services 6% Administration Expenditures by Type 69 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT City Clerk DIVISION OVERVIEW The City Clerk Division is responsible for preparing meeting agendas and minutes for City Council meetings; maintaining official records and City Code; issuing business and liquor licenses; administering elections, including school board; and records and data practices management. 2022-2023 DIVISION GOALS  Implement election software to manage Election Judges’ training and scheduling.  Implement software to manage data practices requests.  Conduct state primary and general elections in 2022.  Conduct school district general election in 2023. 2020-2021 DIVISION ACCOMPLISHMENTS  Administered a presidential primary, state primary and general elections in 2020.  Conducted a special election for the Edina School District in 2021.  Conducted the general election for the Edina School District in 2021. 70 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT—CITY CLERK DIVISION EXPENDITURES PERFORMANCE MEASURES 2019 2020 2021 Business license issued per year 600 626 445 Data Practices Requests processed 161 235 230 Percent of registered voters voting in elections (elections vary by year of federal, state and local races on the ballot) 38% 90% 31% Personal services 70% Contractual services 23% Commodities 2% Internal services 5% City Clerk Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 138,496$ 202,938$ 286,408$ 431,497$ 405,016$ Contractual services 74,654 83,247 87,220 120,925 120,085 Commodities 1,193 9,836 5,300 11,000 8,000 Internal services 20,945 22,368 23,904 23,337 24,048 Total 235,288$ 318,389$ 402,832$ 586,759$ 557,149$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. City Clerk Expenditures 71 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT Race & Equity DIVISION OVERVIEW The Race & Equity Division is responsible for infusing race and equity into all of the City’s department & division through training, work plan support, and engagement. The Division provides support on department work plan items through a race an equity lens, which includes critical analysis of current processes and improvement, professional development growth opportunities, deepening staff and community engagement. The Human Rights and Relations Commission (HRRC) and the City’s interdepartmental group, the Racial Equity Advancement Team (REAT) is supported by the Race & Equity Division. 2022-2023 DIVISION GOALS  Complete final report of the 2018 Racial Equity Implementation Plan and incorporate race & equity goals into on- going department work plans.  Implementation race & equity training for part-time and seasonal staff members. 2020-2021 DIVISION ACCOMPLISHMENTS  Implementation of race & equity training for City Council, Executive Leadership Team, and about 200 full-time staff members.  Yancey Park renaming recommendation approval and community-wide dedication event held.  City of Edina joined Just Deeds Project as a participating city to provide support to community members who want to denounce restrictive covenants on their property. The City also discharged 52 of its City-owned parcels that had restrictive covenants. 72 CITY OF EDINA, MINNESOTA ADMINISTRATION DEPARTMENT—RACE & EQUITY DIVISION EXPENDITURES PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who felt it was “essential” or “very important” that local government focuses on creating a diverse, equitable and in- clusive city. 56% No Survey 68% Percentage of full-time staff members who have completed new racial equity training N/A 4%* 89% *Training paused due to COVID-19. Personal services 76% Contractual services 23% Internal services 1% Equity Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services -$ 2,400$ 115,435$ 133,245$ 136,429$ Contractual services 5,493 2,369 29,000 41,500 41,500 Internal services - - - 3,937 4,074 Total 5,493$ 4,769$ 144,435$ 178,682$ 182,003$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Equity Expenditures 73 CITY OF EDINA, MINNESOTA C OMMUNICATIONS DEPARTMENT Jennifer Bennerotte, Director jbennerrotte@EdinaMN.gov 952-833-9520 DEPARTMENT OVERVIEW The City of Edina’s Communications Department helps other City departments with communication needs. The Department identifies what information and messages need to be conveyed to Edina's diverse audiences and make sure that this is done in the most effective manner possible. DEPARTMENT ORGANIZATIONAL CHART MAJOR SERVICE AREAS  Advertising and marketing  System and Access  Video production  Website development  Management of social media sites  Media and public relations  Graphic Design  Publication of the City’s newsletter Customer Service Representative (3)(PT) Director of Communications Video Production Coordinator Senior Communications Coordinator Communications Coordinators (2) (1 PT) Graphic Designer Admin Support Specialist (PT) Receptionist Office Aide(PT) Community Television Administrator Video Production Assistants (4)(PT) 74 CITY OF EDINA, MINNESOTA 2022-2023 DEPARTMENT GOALS  Conduct the Quality of Life Survey in 2023.  Launch an updated version of the employee extranet, Edinet. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Completed a three-year strategic communications plan.  Conducted the Quality of Life Survey in 2021.  Launched an updated version of the City's website, EdinaMN.gov.  Began regular production of two new original video programs, "Mayor's Minute" and "News Hour with Walter Cronkid."  Installed new equipment in the Council Chambers to allow for hybrid meetings post-COVID-19 pandemic. COMMUNICATIONS DEPARTMENT 75 CITY OF EDINA, MINNESOTA COMMUNICATIONS DEPARTMENT PERFORMANCE MEASURES 2019 2020 2021 Percent of residents who rate the quality of public information services/communication from the City as "excellent" or "good" in the Quality of Life Survey 82% No Survey 80% Number of registered residents for the City’s online engagement and public participation platform, Better Together Edina (launched Jan 2019) 907 913 2,187 Percentage of residents who find the City’s website “excellent” or “good” in the Quality of Life Survey 75% No Survey 78% Social Media followers and fans for the City of Edina Facebook, Twitter and Instagram accounts 87,575 No Survey 109,623 Percentage of residents who find the newsletter Edition: Edina very or somewhat effective in the Quality of Life Survey 57% No Survey 70% 76 CITY OF EDINA, MINNESOTA COMMUNICATIONS DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 893,324$ 872,168$ 935,037$ 970,289$ 1,015,908$ Contractual services 209,181 151,054 235,300 402,870 397,870 Commodities 111,461 110,249 124,500 36,000 61,000 Internal services 91,398 101,964 109,572 115,572 118,586 Construction Fund Equipment replacement 124,162 19,932 15,000 305,000 113,000 Total 1,429,526$ 1,255,367$ 1,419,409$ 1,829,731$ 1,706,364$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Communications Expenditures Personal services 61% Contractual services 18% Commodities 6% Internal services 7% Equipment replacement 8% Communications Expenditures by Type 77 CITY OF EDINA, MINNESOTA C OMMUNITY DEVELOPMENT DEPARTMENT Cary Teague, Director cteague@EdinaMN.gov 952-826-0460 DEPARTMENT OVERVIEW The mission of the Community Development Department is to promote the health, safety and welfare of Edina’s residents, neighborhoods and districts and to preserve our historic and natural resources in an efficient and effective manner through orderly land use and development. The Community Development Department is responsible for planning and zoning, housing and redevelopment, estimating market value and determining the classification of each piece of property in the City for property tax purposes. MAJOR SERVICE AREAS  Commercial appraisal  Heritage preservation  Planning  Sign permits  Residential appraisal  Housing  Zoning DEPARTMENT ORGANIZATIONAL CHART Director of Community Development Planning Division Assessing Division 78 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT 2022-2023 DEPARTMENT GOALS  Complete a District Plan for Cahill Area Business Park.  Seek development opportunities for affordable housing.  Assist in the development of the old public works site.  Review process on using affordable housing funds received from the Buy –In option and develop a policy to ensure funds will be used with a race and equity lens. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Identified and created an inventory of current affordable housing units and developed a process to keep updated.  Participated in the implementation and training for the new Assessment and Taxes program with Hennepin County.  Conducted Land Use Training with Planning Commission and City Council. PERFORMANCE MEASURES 2019 2020 2021 Residents who, from their experience, rate the quality of land use, planning and zoning as “excellent” or “good” in the Quality of Life Survey 53% No Survey 57% 79 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT Assessing Division DIVISION OVERVIEW The Assessing Division conducts field inspections (Minnesota Statute 273.08) and performs annual classification and valuation of Edina’s 21,311 taxable and exempt real estate parcels. Accepted approaches (cost, market comparison and income approach) to property valuation are considered in the appraisal process. The Assessing Division is also responsible for certification and collection of special assessments. Each year, all tangible changes to property that may affect value are physically inspected using building permits as an informational source. Statistical analysis is performed on more than approximately 850 residential sales and existing assessor’s market values each year, forming a basis for annual adjustments to value. Sales and the analysis of available income and expense data help determine adjustments to commercial, industrial, and apartment values. The Division’s work culminates each year with the Board of Appeal & Equalization. Hundreds of inquiries and reviews are handled each year prior to the board meeting. Throughout the year, staff also manages appeals on commercial/industrial and apartment properties in Minnesota Tax Court. DIVISION ORGANIZATIONAL CHART 80 CITY OF EDINA, MINNESOTA 2022-2023 DIVISION GOALS  Physically inspect and revalue 20 percent of all real property.  Value all taxable parcels annually and meet the market adjusted minimum target sales ratio of as percent. 2020-2021 DIVISION ACCOMPLISHMENTS  Completed the 2021 assessment with a market adjusted median sales ratio of 95.1 percent and a coefficient of dispersion of 4.1 percent.  Reviewed and revalued 20 percent of all real property, as required by statute. COMMUNITY DEVELOPMENT DEPARTMENT—ASSESSING DIVISION PERFORMANCE MEASURES 2019 2020 2021 Appraisal value to actual sales value ratio (a complete accurate rating would be 100%) 95.1% 95.7% 95.1% Minnesota Tax Court petitions filed 97 96 92 Board of Appeal and Equalization cases heard 15 10 7 81 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ASSESSING DIVISION EXPENDITURES Personal services 80% Contractual services 13% Commodities 0.11% Internal Services 7% Assessing Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 819,357$ 860,188$ 879,462$ 931,736$ 969,749$ Contractual services 133,824 127,492 154,100 154,590 154,590 Commodities 1,163 477 2,000 1,000 1,000 Internal Services 74,216 76,440 82,656 85,783 87,999 Construction Fund Equipment replacement - 28,979 - - - Total 1,028,560$ 1,093,576$ 1,118,218$ 1,173,109$ 1,213,338$ Assessing Division Expenditures 82 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT Planning Division DIVISION OVERVIEW The Planning Division is primarily responsible for the review and management of development and redevelopment in the City of Edina. The Division coordinates the preparation of a Comprehensive Plan, including the City's long-range guide to how property should be developed or redeveloped. Within the context of the Comprehensive Plan, the Division administers the City's zoning ordinances, which govern how property can be used. The Division acts as the staff liaison to the Planning Commission. Planning staff provides recommendations to the Planning Commission and City Council on all land use issues. The Planning Division also acts as the staff liaison to the Edina Heritage Preservation Board and the Edina Housing Foundation. DIVISION ORGANIZATIONAL CHART Southdale Area Director of Community Development Affordable Housing Development Manager Assistant City Planner (2) Administrative Support Specialist Economic Development Manager 83 CITY OF EDINA, MINNESOTA 2022-2023 DIVISION GOALS  Update the Zoning Ordinance.  Complete the Cahill Business Park study in 2022.  Assist in development of the old public works site. 2020-2021 DIVISION ACCOMPLISHMENTS  Economic Development Manager joined the planning division.  Met Council approved the City's Comprehensive Plans.  Creation of the Housing Rehabilitation Loan Program.  Preservation of modest single family homes through enhanced partnership with Homes Within Reach and Metro HRA.  Revised the City’s Affordable Housing Policy. COMMUNITY DEVELOPMENT DEPARTMENT—PLANNING DIVISION PERFORMANCE MEASURES 2019 2020 2021 Land use application processed 43 47 45 Multi-Family apartment units approved or denied by City Council: Approved Denied 557 215 113 0 1,302 239 Number of affordable housing units built using Tax-Increment Financing (TIF) Districts 15 3 11 84 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—PLANNING DIVISION EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 618,658$ 646,674$ 686,784$ 693,095$ 720,304$ Contractual services 41,452 45,135 164,500 162,420 162,420 Commodities 1,456 636 6,500 6,000 6,000 Internal Services 55,686 56,112 60,888 65,021 66,676 CDBG Fund Contractual services 340,954 20,470 125,000 135,000 135,000 Construction Fund Capital outlay 1,446,133 1,406,091 - 75,000 - Total 2,504,339$ 2,175,118$ 1,043,672$ 1,136,536$ 1,090,400$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Planning Division Expenditures Personal services 67% Contractual services 27% Commodities 0% Internal Services 6% Planning Expenditures by Type 85 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT Economic Development/Housing & Redevelopment Authority (HRA) DIVISION OVERVIEW The City strives to maintain a strong tax base and diversified mixture of land uses to compliment the many single-family neighborhoods with employment opportunities, retail and service destinations, and multi-family housing options. The Economic Development Division undertakes economic development projects to sustain and support an environment where businesses can prosper and contribute to the desirable quality of life for which Edina is known. The Edina HRA was established in 1974 for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing. The Edina HRA is an entity legally separate from the City with separate taxing authority. However, for financial reporting purposes, the HRA is reported as if it were part of the City’s operations because the members of the City Council serve as HRA commissioners and its activity is confined within the city. The special revenue HRA Fund is used to account for revenues from several sources (tax-increment, bond proceeds, investment earnings, etc.) that are designated for housing and redevelopment activities. Due to the involvement of tax-increment financing (TIF) dollars, there are legal restrictions on how the money in this fund may be spent. 2022-2023 DIVISION GOALS  Establish a new business accelerator program with a physical location in Edina.  Implement a marketing campaign to attract new businesses to redevelopment sites.  Identify private redevelopment efforts that require HRA assistance to proceed.  Secure site for new affordable housing.  Update economic development policies to incorporate additional City goals like sustainability and equity. North Ramp at 50th & France Amundson Flats 86 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION PERFORMANCE MEASURES 2019 2020 2021* Non-Residential Tax Base within Edina $3.1B $3.46B $3.6 B Commercial Vacancy Rates in Southwest metro, including Edina (Source: Colliers International Quarterly Market Report) Retail Office Industrial 8.5% 13.9% 6.3% 3.8% 10.4% 4.9% 8.5 9.9% 4.9% 2020-2021 DIVISION ACCOMPLISHMENTS  Implemented Small Business Emergency Assistance Program to support 52 small businesses suffering from COVID- 19 pandemic.  Implemented “Love Local” marketing campaign to support Edina business districts.  Established new TIF Districts to help fund affordable housing and public improvements.  Completed first phase of roadway and infrastructure improvements in the Grandview District.  Issued Certificates of Completion and awarded TIF Notes for Nolan Mains and Lorient Apartments, including 13 units of affordable housing, public parking and public plazas.  Awarded 2021 “Partnerships in Planning” award by American Planning Association – Minnesota for the Market Street Redevelopment. *projected 87 CITY OF EDINA, MINNESOTA HRA expenditures are based on anticipated revenues and draw down of existing balances. COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION EXPENDITURES Economic Development Expenditures 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget HRA Fund Personal services $ 177,704 $ 153,128 $ 190,353 $ 197,566 $ 204,932 Contractual services 574,199 418,714 1,241,500 4,504,220 2,197,470 Commodities 1,018 1,624 2,500 3,000 3,000 Capital outlay 4,066,449 1,454,132 710,000 - - Total $4,819,370 $ 2,027,598 $ 2,144,353 $ 4,704,786 $ 2,405,402 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Personal services 5% Contractual services 46% Capital outlay 49% HRA Fund Expenditures by Type 88 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION Edina uses Tax-Increment Finance (TIF) as a tool to promote high-quality economic development and redevelopment in the city. Each TIF District has a district budget fund. This document includes details of the nine active TIF Districts as well as two de-certified TIF Districts that retain a fund balance. A summary table of each TIF District and anticipated expenditures follows. This district was established in 1988 with the goal of attracting new investment to the underdeveloped portions of Southeast Edina that had formerly been a gravel pit. The District was decertified in 2014 and retained a balance of $7.3M as of 12/31/2020. The balance is intended to be invested in redevelopment projects over the next several years. Centennial Lakes TIF District Tax-Increment Finance (TIF) Districts Grandview 2 TIF District This district was established in 2016 to create a viable funding source for the many public improvements anticipated to improve access to and through the overall Grandview commercial district. This TIF District includes 15 properties that cover 11 acres of the 80 acre commercial area. The parcels included are considered the most likely to be redeveloped in the next few years. The first revenue collection occurred in 2020 and the District will expire in 2045. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Centennial TIF District Personal services $ 69,450 $ 30,892 $ 66,642 $ 197,566 $ 204,932 Contractual services 91,784 15,063 7,500 145,720 425,720 Commodities - 613 - - - Capital outlay 863,349 33,490 500,000 - - Total $1,024,583 $ 80,058 $ 574,142 $ 343,286 $ 630,652 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Grandview 2 TIF District Personal services 272$ 1,581$ 15,463$ -$ -$ Contractual services - 20,147 1,500 189,000 522,250 Commodities - - - Capital outlay - 115,615 - - - Total 272$ 137,343$ 16,963$ 189,000$ 522,250$ 89 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION This district was created in 2014 to attract first-class investment to this outdated office park that had suffered from disinvestment. The first revenue collection began in 2018. The District is anticipated to terminate in 2043. The City entered into a redevelopment agreement with Pentagon Village, LLC in 2018 pertaining to the redevelopment of the 12-acre South Parcel. The City issued a TIF Note for $18.1M that is payable upon successful completion of the site. Pentagon Park TIF District Southdale 2 TIF District This district was created in 2010 to spur investment in and around Southdale Center shopping mall. It will terminate in 2021. The City entered into an agreement with the owners of Southdale Center to provide a $5M no-interest loan if they would invest at least $15M into the common areas of the shopping center. This work was completed in 2012. In 2014 and 2019, Edina was granted special legislation to use monies from this district to support affordably-priced hous- ing in Edina. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Pentagon Park TIF District Personal services $ 15,101 $ 23,502 $ 15,463 $ - $ - Contractual services - 4,673 286,500 6,000 476,000 Commodities - 8 - - - Capital outlay - - - - - Total $ 15,101 $ 28,183 $ 301,963 $ 6,000 $ 476,000 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Southdale 2 TIF District Personal services $ 14,919 $ 22,905 $ 15,463 $ - $ - Contractual services 421,925 124,175 12,000 3,073,000 18,000 Commodities - - - - - Capital outlay 2,893,443 1,303,950 - - - Total $3,330,287 $ 1,451,030 $ 27,463 $ 3,073,000 $ 18,000 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 90 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION Grandview (2) TIF District 44th & France 2 TIF District This Renewal TIF District was established in 2018 to support redevelopment of an obsolete site to include new housing and retail space, along with shared public parking, a new public plaza and new streetscaping. The City executed a redevelopment agreement with Orion 4500 France LLC to pledge future incremental property taxes to the developer to reimburse them for up to $2.3M in eligible expenses. The project was completed in August 2020. 50th & France 2 TIF District This district was created in 2017 to support new investment and new public parking along Market Street. This district includes only the parcels along Market Street that were redeveloped in 2018-2020. This project will return several parcels to the tax rolls and will create more public parking, new outdoor public areas, new business opportunities and new housing options. The first revenue collection occurred in 2020 and the District will expire in 2045. In June 2019, the City executed a redevelopment agreement with Edina Market Street, LLC to pledge $10.1M in reimbursement for costs associated with delivering the public benefits. This project was completed in 2020. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget 44th & France TIF District Personal services $ - $ - $ - $ - $ - Contractual services - - 31,500 39,000 39,000 Commodities - - - - - Capital outlay - - - - - Total $ - $ - $ 31,500 $ 39,000 $ 39,000 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget 50th & France TIF District Personal services $ - $ 7,779 $ - $ - $ - Contractual services - 2,457 701,500 455,000 425,000 Commodities - 199 - - - Capital outlay - - - - - Total $ - $ 10,435 $ 701,500 $ 455,000 $ 425,000 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 91 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION 66 West TIF District This district was created in 2016 to support the construction of new affordably priced housing in Edina. The 66 West Apartments consist of 39 apartments developed by Beacon Interfaith Housing that are dedicated to youth and young adults who formerly experienced homelessness. The City used TIF monies to supplement other private funds and grants. The first revenue collection occurred in 2019 and the District will expire in 2044. 70th & Cahill/Wooddale Valley View TIF Redevelopment District Three TIF Districts were created in 1990 to encourage redevelopment and economic development at three commercial nodes in Edina. The 70th & Cahill District, 44th & France District and Wooddale Valley View Districts were decertified in 1999. The remaining balances were pooled together. As of Dec. 31, 2020, the balance was $344k. This balance is intended to be invested in redevelopment projects in these districts over the next few years. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget 66th West Housing TIF District Personal services $ - $ - $ - $ - $ - Contractual services - 1,079 1,500 3,500 3,500 Commodities - - - - - Capital outlay - - - - - Total $ - $ 1,079 $ 1,500 $ 3,500 $ 3,500 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget 70th & Cahill TIF District Personal services $ - $ - $ - $ - $ - Contractual services - - - - - Commodities - - - - - Capital outlay 309,657 - 200,000 - - Total $ 309,657 $ - $ 200,000 $ - $ - *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. 92 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION This budget category is a placeholder for anticipated efforts to support affordable housing in Edina. Funds pooled from the Southdale 2 TIF District are anticipated to be used to support affordable housing in multiple locations. Based on 2019 revenue collections, approximately $14.9M is estimated to be available to fund affordable housing when the Southdale 2 TIF District terminates in 2021. These monies are intended to be invested over multiple years and in multiple sites. Affordable Housing TIF Districts New Districts to be created out of this fund include: West 76th Street TIF District This district was established in 2018 to support new affordable housing at 4100 West 76th St. In 2019, the HRA purchased the site and sold it to Aeon for the construction of new affordable housing. The first revenue collection will occur in 2022. The district is scheduled to terminate in 2042. The project is under construction and expected to be completed in 2022. 72nd & France TIF District This district was established in 2019 to support new affordable housing on a site previous occupied by two obsolete office buildings. The City entered into a redevelopment agreement with France Equities, LLC and pledged to issue a TIF Note after completion of the mixed use project that includes housing, commercial space and public realm improvements. The first revenue collection is scheduled to occur in 2023. The district is scheduled to terminate in 2043. At this time, construction has not started and no expenditures are anticipated Amundson Avenue TIF District This district was established in 2019 to support new affordable housing at 7075 Amundson Ave. The HRA acquired the site and resold it to MWF Properties for the construction of new affordable housing. The construction was completed in 2021. The first revenue collection will occur in 2022. The district is scheduled to terminate in 2042. 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget HRA Affordable Housing Personal services -$ -$ -$ Contractual services - 109,690 70,000 5,000 5,000 Commodities - - - Capital outlay - - - - - Total -$ 109,690$ 70,000$ 5,000$ 5,000$ 93 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION Affordable Housing TIF Districts 4040 West 70th Street TIF District This District was established in 2021 to support construction of new affordably-priced senior housing. Eden Willson TIF District This District was established in 2021 to support construction of new mixed-income and mixed-use development on a former commercial site. The City entered into a redevelopment agreement with Reuter Walton Development dba Eden Avenue Group, LLC and anticipates pledging a TIF Note after the project is successfully completed. The principal value of the Note will not exceed $5.1M and will bear interest not to exceed 4.0%. After the TIF Note is repaid, remaining incremental taxes will be used to fund public improvements to several roadways that surround the site. The first collection will occur in 2025 and the district is scheduled to terminate in 2050. 94 CITY OF EDINA, MINNESOTA COMMUNITY DEVELOPMENT DEPARTMENT—ECONOMIC DEVELOPMENT/HRA DIVISION EXPENDITURES Expenditures by TIF District 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget TIF District Centennial Lakes $1,024,583 $ 80,058 $ 574,142 $ 343,286 $ 630,652 Grandview - - - - - Grandview 2 272 137,343 16,963 189,000 522,250 Pentagon Park 15,101 28,183 301,963 6,000 476,000 Southdale 2 3,330,287 1,451,030 27,463 3,073,000 18,000 44th & France 2 - - 31,500 39,000 39,000 50th & France 2 - 10,435 701,500 455,000 425,000 66th West - 1,079 1,500 3,500 3,500 70th & Cahill 309,657 - 200,000 - - Total $4,679,900 $ 1,708,128 $ 1,855,031 $ 4,108,786 $ 2,114,402 *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Centennial Lakes 20% Grandview 2 5% Pentagon Park 7% Southdale 2 49% 44th & France 2 1% 50th & France 2 14% 70th & Cahill 4% HRA Fund Expenditures by TIF District 95 CITY OF EDINA, MINNESOTA E NGINEERING DEPARTMENT Chad Millner, Director cmillner@EdinaMN.gov 952-826-0318 DEPARTMENT OVERVIEW The Engineering Department is responsible for the planning, design and construction of the City’s infrastructure, including sidewalk and bikeway systems, local and Municipal State Aid (MSA) street systems, storm sewer, sanitary sewer, water, street lighting systems and facilities as well as other projects that support residents and businesses. Staff ensures that projects meet design standards and engineering requirements. The Engineering Department leads city- wide sustainability initiatives, provides a staff liaison to the Energy & Environment Commission and the Transportation Commission, and works directly with other local, regional and state agencies. MAJOR SERVICE AREAS  Asset Management  Design, Construction and Project Management of Infrastructure Projects  Right of Way Management and Utility Coordination  Development and Redevelopment Planning and Coordination  Facilities Management  Transportation  Sustainability  Water Resources DEPARTMENT ORGANIZATIONAL CHART Director of Engineering Engineering Coordinator Design and Construction Division Engineering Services Division Transportation Division Sustainablity Division Facilities Management Division 96 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT 2020-2021 DEPARTMENTAL ACCOMPLISHMENTS  Improved communications with residents during the Neighborhood Street Reconstruction Projects by utilizing Bet- terTogetherEdina.org.  Successfully constructed 5.36 and 1.0 miles of local neighborhood and Municipal State Aid (MSA) streets.  Improved performance of the water infrastructure system by replacing and rehabilitating more than 27,008 feet of water main, 60 fire hydrants, 115 gate valves and 387 water services.  Reduced potential inflow and infiltration by rehabilitating 38,026 feet of sanitary sewer trunk pipe. 2022-2023 DEPARTMENTAL GOALS  Implement the 2022 and 2023 neighborhood roadway reconstruction projects.  Evaluate implementation of reduced local speed limits.  Create a water quality strategy.  Implement Climate Action Plan.  Conduct city-wide roof condition assessment. PERFORMANCE MEASURES 2019 2020 2021 Citywide Pavement Condition Index (PCI) rating the condition of city streets on a scale of 1-100, with 100 being a new street 73 73 76 Post Street Reconstruction Survey: During construction, how effective was the project team in understanding your specific construction related issue 69% 23.6% TBD Number of registered users of BetterTogetherEdina.org, an online engagement tool for City projects, including street reconstruction 907 2,080 2,223 97 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Engineering 2,191,718$ 2,483,995$ 2,724,345$ 3,616,299$ 3,826,591$ General fund subtotal 2,191,718 2,483,995 2,724,345 3,616,299 3,826,591 Other Funds PACS fund 1,125,462 1,771,939 1,142,287 1,251,894 1,257,188 Construction 4,004,330 3,306,761 5,626,230 8,850,570 9,842,506 CAS fund 263,893 249,621 896,453 752,185 732,345 Facilities Management fund**1,135,616 1,325,127 1,356,361 1,379,522 Utility fund 593,379 510,118 517,811 1,362,510 1,295,519 Department Total Budget 8,178,782$ 9,458,050$ 12,232,253$ 17,189,819$ 18,333,671$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. ** These costs were charged back as central service expenditures prior to 2020 and are now accounted for as an internal service fund. Engineering Expenses Engineering 25% PACS fund 11%Construction 52% CAS fund 5% Utility fund 7% Engineering Expenses by Service Area 98 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT Design & Construction Division DIVISION OVERVIEW The Design & Construction Division is responsible for the design and construction of the City’s infrastructure. Staff coordinates reconstruction of neighborhood and MSA roadways. The Division is also responsible for the rehabilitation of utility infrastructure. The Design & Construction Division works with other agencies such as the Minnesota Department of Transportation and Hennepin County to coordinate other reconstruction projects throughout the City. DIVISION ORGANIZATIONAL CHART Assistant City Engineer Senior Engineering Technicians Engineering Technicians Project Engineer 99 CITY OF EDINA, MINNESOTA 2020-2021 DIVISION ACCOMPLISHMENTS  Planned, designed and coordinated street reconstruction utilizing the Living Streets Plan and Small Area Plans.  Successfully constructed 6.36 miles of City streets. ENGINEERING DEPARTMENT—DESIGN & CONSTRUCTION DIVISION 2022-2023 DIVISION GOALS  Implement the 2022 and 2023 neighborhood roadway reconstruction projects.  Coordinate and implement design and construction of bike and pedestrian projects. PERFORMANCE MEASURES 2019 2020 2021 Citywide Pavement Condition Index (PCI) rating the condition of city streets on a scale of 1-100, with 100 being a new street 73 73 76 Street Reconstruction Survey for residents: Did final infrastructure meet your expectations? Percent that selected “Yes” 62% No survey 64% 100 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT Transportation Division DIVISION OVERVIEW The Transportation Division is responsible for the planning, design and management of local transportation systems and facilities in the City of Edina and in coordination with surrounding agencies. The Division prepares and reviews City policies related to transportation and traffic systems planning, design and maintenance. Staff in this Division serve as the liaison to the Transportation Commission. Staff works directly with the Commission on matters related to transportation systems. The Transportation Division receives and reviews resident requests for transportation systems changes to increase safety or consistency throughout the city, conducts the appropriate level of analysis and makes recommendations. The Division Coordinates non-motorized transportation facilities marketing and promotional activities aimed at furthering education in the city. Staff administers the Living Streets program and Pedestrian and Cyclist Safety (PACS) fund. DIVISION ORGANIZATIONAL CHART 101 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—TRANSPORTATION DIVISION 2022-2023 DIVISION GOALS  Evaluate implementation of reduced local speed limits.  Implement equity criteria for prioritization of PACS Fund projects.  Update the Pedestrian and Bicycle Master Plan. 2020-2021 DIVISION ACCOMPLISHMENTS  Improved pedestrian safety and walkability by constructing 2.6 miles of new sidewalks.  Adapted the CloverRide circulator bus service to meet resident needs during the COVID-19 pandemic.  Developed a recommendation for reducing speed limits on local streets.  Adopted a Travel Demand Management policy. PERFORMANCE MEASURES 2019 2020 2021 Percent of resident-submitted traffic safety issues resolved within the year 93% 100% 97% Miles of sidewalks constructed 0.7 2.6 1.5 Miles of bikeways constructed 0.4 0.1 0.4 Percentage of residents who rated the ease of walking in Edina as “excellent” or “good” in the Quality of Life Survey 65% NA 73% 102 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—TRANSPORTATION DIVISION PACS Fund The Pedestrian and Cyclist Safety (PACS) Fund is a special revenue fund created to account for new gas and electric utility franchise fee revenues from customers. The utility franchise fees are dedicated revenue to the PACS Fund. Other potential revenues for the PACS Fund may include grants, donations, special assessments and transfers from other City funds. The purpose of the PACS Fund is to provide funding for the creation, maintenance and improvement of non-motorized transportation facilities for the primary benefit of pedestrians and cyclists in Edina. Non-motorized transportation facilities (NMTF) is defined as sidewalks, trails and other bicyclist-related facilities. In 2022 and 2023, the franchise fees are expected to generate approximately $1.2M each year in revenue. 2022 Projects (orange) A. Blake Road sidewalk, bike lanes B. Olinger Boulevard sidewalk C. Eden Avenue shared-use path D. Grimes Avenue bike lanes E. France Avenue sidewalk 2023 Projects (green) F. East Frontage Road shared-use path G. Braemar Boulevard shared-use path H. Prospect Knolls sidewalks I. Vernon Avenue sidewalks J. Morningside sidewalks/bike lanes K. France Avenue shared-use paths L. Southdale sidewalks 103 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—TRANSPORTATION DIVISION EXPENDITURES Personal services 9% Contractual services 5% Commodities 1%Internal services 0% Capital outlay 85% PACS Fund Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Franchise fees 1,208,008$ 1,225,533$ 1,200,000$ 1,200,000$ 1,200,000$ Intergovernmental 9,315 - - - - Investment Income 12,997 3,835 1,060 - - Total revenues 1,230,320 1,229,368 1,201,060 1,200,000 1,200,000 Expenditures Personal services 102,328 106,739 120,202 124,371 129,399 Contractual services 80,890 1,824 75,000 75,720 75,720 Commodities 3,653 12,307 15,000 13,000 13,000 Internal services 5,868 7,200 7,860 8,803 9,069 Capital outlay 932,723 1,643,869 924,225 1,030,000 1,030,000 Total expenses 1,125,462 1,771,939 1,142,287 1,251,894 1,257,188 Change in fund balance 104,858 (542,571) 58,773 (51,894) (57,188) January 1 balance 387,202 492,060 (273,130) (50,511) (102,405) December 31 balance 492,060$ (50,511)$ (214,357)$ (102,405)$ (159,593)$ PACS Fund Financial Summary 104 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT Engineering Services Division DIVISION OVERVIEW The Engineering Services Division provides a variety of services to planners, builders, property owners and utility customers by managing the shared public right-of-way, coordinating utility and street connections, managing and planning surface water resources and flood protection, reducing surface water pollution and providing geographical maps and data. DIVISION ORGANIZATIONAL CHART 105 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—ENGINEERING SERVICES DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Create flood risk reduction strategy.  Morningside Flood Infrastructure preliminary design, engagement and decision. 2022-2023 DIVISION GOALS  Create a water quality strategy.  Morningside Flood Infrastructure final design and construction staging. PERFORMANCE MEASURES 2019 2020 2021 Number of GIS service requests per year 2,512 1,798 2,300 Number of storm/erosion control plan reviews by staff 326 374 294 Water resources City Extra email list subscribers 160 215 221 106 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT DIVISION OVERVIEW The Sustainability Division is responsible for integrating sustainability principles and goals into all projects and programs for the City of Edina. The Division supports the work of other City departments by performing cost/benefit analyses, developing performance metrics, and prioritizing funding and projects to best meet the City’s sustainability goals. The division also supports the City’s Energy & Environment Commission. The Sustainability Division manages the Conservation & Sustainability (CAS) Fund. Funded by gas and electric franchise fees, the CAS Fund is used for capital improvements to City-owned buildings and equipment that meet the City’s sustainability goals including increasing energy efficiency or reducing the City’s production of greenhouse gas. The CAS Fund also pays for division staff, including one full-time Sustainability Coordinator. Sustainability Division 2022-2023 DIVISION GOALS  Measure and communicate progress on near-term GHG emission reduction goals.  Implement Climate Action Plan.  Implement sustainable buildings policy & building energy benchmarking ordinance. 2020-2021 DIVISION ACCOMPLISHMENTS  Adopted Green Fleet Policy for City-owned vehicles.  Adopted Sustainable Buildings Policy for City-owned buildings.  Adopted Sustainable Buildings Policy for non-City-owned buildings.  Adopted Climate Action Plan. 107 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—SUSTAINABILITY DIVISION EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Franchise fees 779,062$ 943,501$ 1,000,000$ 1,000,000$ 1,000,000$ Investment Income 22,494 44,918 5,190 15,000 15,000 Other revenues 55,112 1,500 7,000 - - Total revenues 856,668 989,919 1,012,190 1,015,000 1,015,000 Expenditures Personal services 130,780 65,787 165,109 145,820 155,688 Contractual services 4,819 35,938 123,100 96,020 66,020 Commodities - 390 - 1,200 1,200 Internal services 5,481 7,488 8,244 9,145 9,437 Capital outlay 122,813 140,018 600,000 500,000 500,000 Total expenses 263,893 249,621 896,453 752,185 732,345 Change in fund balance 592,775 740,298 115,737 262,815 282,655 January 1 balance 460,314 1,053,089 1,793,387 1,909,124 2,171,939 December 31 balance 1,053,089$ 1,793,387$ 1,909,124$ 2,171,939$ 2,454,594$ CAS Fund Financial Summary Personal services 23% Contractual services 11% Commodities 0% Internal services 2% Capital outlay 64% CAS Fund Expenditures by Type 108 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT—SUSTAINABILITY DIVISION PERFORMANCE MEASURES 2019 2020 2021 Percent of residents who agree the City should invest in programs and policies to address climate change according to the Quality of Life Survey 75% No Survey 75% Number of Home Energy Squad visits for Edina residents 214 73* 100 * Numbers impacted by COVID-19. 109 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT Facilities Management Division DIVISION OVERVIEW The Facilities Management Division supports all City departments by managing the long-term viability of the City’s current physical assets & infrastructure and by planning for future needs. The major facilities include City Hall & Police Department, Public Works & Parks Maintenance Facility, Fire Stations, Braemar Complex (Ice Arena, Sports Dome, Golf Course, Golf Dome), Edinborough, Centennial Lakes, Parks Facilities, Liquor Stores and City parking ramps. Other non-City facilities include the exterior building services at Edina Community Library/Senior Center and the 50th & France Special Services District; park shelter buildings and utility buildings. The City maintains over 80 buildings totaling in excess of 800,000 sq. ft. of space. The Facilities Division includes the Electrical and Heating, Ventilation, and Air Conditions (HVAC) Division of the City’s Public Works Department. Electricians maintain more than 400 street lights, City-owned traffic signals, and lighting fixtures for the more than 80 City facilities and the Electrical/HVAC needs at each of those facilities. DIVISION ORGANIZATIONAL CHART Facilities Manager Electrical / HVAC Supervisor Electrician (2) Maintenance Technicians (3) Electrician/HVAC Specialist (2) Project Manager Facility Supervisor 110 CITY OF EDINA, MINNESOTA ENGINEERING DEPARTMENT— FACILITIES MANAGEMENT DIVISION 2022-2023 DIVISION GOALS  Conduct city-wide roof condition assessment.  Centralized and streamline Fire Alarm & Suppression Inspections and Maintenance Contracts. 2020-2021 DIVISION ACCOMPLISHMENTS  Conducted 2 Energy and Asset Management Studies (City Hall, Edinborough Indoor Park).  Completed Safety and Security Improvements at City Hall. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents rating the quality of street lighting as “excellent” or “good” in the Quality of Life Survey 77% No Survey 80% Average Facilities Condition Index (FCI) of all City buildings. Scale from 0 to 1, with 0 being a new building and 1 a deteriorated structure .27 .33 .33 111 CITY OF EDINA, MINNESOTA F INANCE Alisha McAndrews, Director AMcAndrews@EdinaMN.gov 952-826-0390 DEPARTMENT OVERVIEW The Finance Department provides accounting for all financial activities of the City, the Housing & Redevelopment Authority (HRA), the South Metro Public Safety Training Facility, and other auxiliary organizations. The department is also responsible for revenue collections, disbursements and investments, preparation of the annual budget and financial statements of the City. The Finance Department is responsible for processing about 55,000 utility bills and 13,500 vendor payments in 2020. The department is also responsible for managing the City’s debt and investments as well as preparing the City budget, Comprehensive Annual Financial Report (CAFR), and Capital Improvement Plan (CIP). MAJOR SERVICE AREAS  Accounting  Accounts payable  Budget and CIP compilation  Revenue collections  Tax compliance  Treasury and debt administration  Finance administration  Financial reporting  Utility billing DEPARTMENT ORGANIZATIONAL CHART 112 CITY OF EDINA, MINNESOTA FINANCE DEPARTMENT 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Compiled the 2021-2026 Capital Improvement Plan (CIP).  Implemented Tyler Munis ERP Financial/HRIS system.  Managed the CARES Act funding allocation and distribution to eligible recipients during the COVID-19 pandemic. 2022-2023 DEPARTMENT GOALS  Creating an internal consortium for ERP excellence to improve staff's experience with the system and ensure data needs are met.  Prepare the 2023-2028 CIP with a focus on continuously refining and improving the process.  Complete implement of new Utility Billing (UB) system and effectively communicating to residents any changes that may impact them.  Develop and deploy comprehensive purchasing training for city staff. PERFORMANCE MEASURES 2019 2020 2021 City received an independent auditor's judgment that financial statements are in compliance with generally accepted accounting principles (unqualified audit opinion) Yes Yes TBD Conversion of the City’s light and power to solar, reflected on utility bills 7% 7% 7% Number of proactive reviews of customer water usage to identify potential leaks in water systems 63 89 108 113 CITY OF EDINA, MINNESOTA FINANCE DEPARTMENT EXPENDITURES Personal services 66% Contractual services 27% Commodities 1% Internal services 6% Finance Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 711,439$ 803,372$ 799,711$ 902,302$ 940,058$ Contractual services 271,663 274,355 340,250 307,690 310,810 Commodities 8,846 16,555 15,500 15,000 15,000 Internal services 58,781 59,784 65,076 72,666 74,520 Total 1,050,728$ 1,154,066$ 1,220,537$ 1,297,658$ 1,340,388$ Other Funds Utility 327,542 335,142 354,691 409,281 411968 Construction 1,214,636 594,344 - - - Department Total Budget 2,592,906$ 2,083,552$ 1,575,228$ 1,706,939$ 1,752,356$ Finance Department Expenditures & Expenses 114 CITY OF EDINA, MINNESOTA F IRE DEPARTMENT Andrew Slama, Fire Chief aslama@EdinaMN.gov 952-826-0332 DEPARTMENT OVERVIEW The mission of the Edina Fire Department is to serve the community by protecting lives, property and the environment in a safe, efficient and professional manner. The Department works together to ensure the health and safety of the City’s residents by enforcing building and fire codes for new construction; conducting life-safety inspections of existing buildings; providing fire suppression services, providing Advanced Life Support (ALS) services, providing technical rescue services, and providing public health services. The City of Edina is also responsible for the management of the South Metro Public Training Facility (SMPTF). SMPTF provides high-quality, cost-effective training and development for public safety organizations. The Fire Department is also a member of Minnesota Task Force 1 Urban Search & Rescue Team. This State funded program equips and trains personnel to respond statewide to disasters and complicated technical rescues. MAJOR SERVICE AREAS  Fire Department Operations  Emergency Medical Services  Fire Suppression Services  Technical Rescue Services  Emergency Management  Building Inspection  Administration of South Metro Public Safety Training Fa- cility  Fire Inspection and Prevention  Public Health DEPARTMENT ORGANIZATIONAL CHART 115 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT 2022-2023 DEPARTMENT GOALS  Evaluate service delivery models.  Acquire properties for relocation of Fire Station 2 and new Fire Station 3.  Provided geographical balanced Fire Suppression and EMS service coverage by relocating Fire Station 2. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Increased Paramedic Firefighters staffing via SAFER grant.  Locally controlled community health services and emergency medical services throughout the COVID-19 pandemic.  Outfitted all emergency response staff with body armor.  Provided Fire Department staff to administer vaccinations at COVID-19 mass vaccinations sites. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who rate fire and ambulance services as “excellent” or “good” in the Quality of Life Survey 99% No Survey 99% Total Run Volume 6,321 5,553 6,756 116 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— OPERATIONS DIVISION Operations Division DIVISION OVERVIEW The Operations Division of the Fire Department is responsible for providing 24-hour fire suppression services; company-level rescue services (including vehicle and machinery extrication, ice/water rescue, low-angle rope rescue); technical rescue services (including trench/excavation rescue, confined space rescue, high-angle rope rescue, structural collapse rescue); and Advanced Life Support Emergency Medical Service & ambulance transportation. 117 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT—OPERATIONS DIVISON Emergency Medical Service Three Fire Department ambulances are staffed 24-hours a day, seven days a week, each with two Paramedic Firefight- ers. These paramedics are trained in Advanced Cardiac Life Support and certified by the State of Minnesota Emergency Medical Services Regulatory Board. Our Firefighter Paramedics responded to 5,337 calls for service in 2021. Calls for Emergency Medical Services are broken down by the following : Station 1-1,894 Station 2- 2,655 Mutual Aid Given- 788 Fire Suppression and Company-Level Rescue Services Edina’s Paramedic Firefighters are organized into three shifts to provide 24-hour coverage. Each shift is made up of nine Paramedic Firefighters , one Lieutenant, and one Shift Captain. Shifts are on duty from 7am until 7am, 365 days per year. The Fire Department responded to 1,419 Fire calls in 2021. These fire calls included structure fires, outside fires (vehicles, rubbish), false alarms, and hazardous conditions. Fire Engines in Edina carry equipment necessary for vehicle and heavy-machinery extrication, rope rescue, ice-rescue, and water rescue. Technical Rescue Services The Edina Fire Department is a participating agency of Minnesota Task Force 1, the state’s Urban Search & Rescue as- set. Paramedic Firefighters are trained and equipment to conduct confined space rescues, trench- and excavation res- cues, high- and low-angle rope rescue, and structural collapse rescue. 118 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— OPERATIONS DIVISION 2022-2023 DIVISION GOALS  Implement mobile extracorporeal membrane oxygenation response for victims of cardiac arrest who meet ECMO criteria.  Secure property and begin planning for a replacement Fire Station 2 and a new Fire Station 3.  Enhance and expand the EMS division’s quality assurance program.  Evaluate service delivery models in the areas of fire suppression, technical rescue, and EMS.  Evaluate and improve station alerting system.  Implement hazard zone management/incident command procedures.  Review and revise deployment models. 2020-2021 DIVISION ACCOMPLISHMENTS  Hired and on-boarded new Paramedic Firefighter positions via SAFER grant.  Provided Public Health Services and Emergency Medical Services to residents during the COVID-19 pandemic.  Created a partnership with the University of Minnesota to provide out-of-hospital mobile ECMO services.  Expanded and enhanced incident command and fireground training for department members of all ranks. PERFORMANCE MEASURES 2019 2020 2021 Annual operating cost for fire and emergency services per household $302 $354 $379 119 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— OPERATIONS DIVISION EXPENDITURES Fire & rescue 69% Building inspections 19% Public Health 12% Expenditures by Division and/or Service Area 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Fire & rescue 6,871,799$ 7,817,156$ 8,364,200$ 8,762,743$ 9,099,497$ Building inspections 2,016,207$ 2,101,561$ 2,278,643$ 2,474,982$ 2,580,768$ Public Health 602,086 2,750,013 1,172,456 1,154,358 1,216,562 General fund subtotal 9,490,092 12,668,730 11,815,299 12,392,083 12,896,827 Other Funds Equipment replacement 2,814,713 1,542,050 110,000 640,875 709,250 Department Total Budget 12,304,805$ 14,210,780$ 11,925,299$ 13,032,958$ 13,606,077$ *For comparative, purposes previous year figures may be adjusted to reflect realigned responsibilities. Fire Department Expenditures 120 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT Training and Safety Division DIVISION OVERVIEW The Fire Department’s training Division is responsible for assuring that all Paramedic Firefighters receive high-quality on-going training in the areas of Emergency Medical Services, Fire Suppression, and Technical Rescue. Additionally, the Training Division oversees the operation of the South Metro Public Safety Training Facility. Edina’s Police and Fire De- partments, along with several neighboring Police and Fire Departments, use SMPSTF to provide initial and on-going training to its firefighters and police officers. DIVISION ORGANIZATIONAL CHART Fire Chief Assistant Chief of Training/Safety SMPSTF Facility Manager 121 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— TRAINING AND SAFETY DIVISION 2022-2023 DIVISION GOALS  Implement “on shift” technical rescue training.  Create staff training committee for training delivery.  Refine and deliver new hire firefighter academy to new recruits. 2020-2021 DIVISION ACCOMPLISHMENTS  Hired and onboarded new Paramedic Firefighters positions via SAFER Grant in March of 2020.  Selected and hired a new Fire Chief through a nation wide search and hired a new training chief.  Credentialed all staff in Autism Awareness. PERFORMANCE MEASURES 2019 2020 2021 Training Hours per Paramedic Firefighter 209 69 43 Hours Spent at SMPSTF conducting Scenario based training 353 119 74 Injuries resulting in Lost Time 2 4 2 122 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— Fire and Emergency Medical Services EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 5,732,565$ 6,577,196$ 6,866,055$ 7,222,354$ 7,516,948$ Contractual services 393,897 484,107 576,510 633,755 650,230 Commodities 269,729 281,074 379,343 335,280 345,590 Internal services 475,607 474,779 542,292 571,354 586,729 General fund subtotal 6,871,798 7,817,156 8,364,200 8,762,743 9,099,497 Other Funds Equipment replacement 2,814,713 1,542,050 110,000 640,875 709,250 Department Total Budget 9,686,511$ 9,359,206$ 8,474,200$ 9,403,618$ 9,808,747$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Fire & Rescue Expenditures Personal services 75% Contractual services 6% Commodities 4% Internal services 6% Equipment replacement 9% Fire and Emergency Medical Services Expenditures by Type 123 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT Building Inspections Division DIVISION OVERVIEW The Building Inspections Division is responsible for plan review, permitting and inspection of all new construction within the city to ensure that new buildings meet both structural and exiting safety standards. The City of Edina adopts the Minnesota State Building Code, which in turn adopts the International Building Code, International Residential Code and other codes and standards relating to building inspections. The Division has been a leader within the City to go paperless with electronic plan reviews and permits. DIVISION ORGANIZATIONAL CHART 124 CITY OF EDINA, MINNESOTA 2022-2023 DIVISION GOALS  Train Apprentice Building Inspector.  Continue to scan 20% of building house files per year.  Test fleet transition to Electric Vehicles (EV). FIRE DEPARTMENT— BUILDING INSPECTIONS DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Implemented the new Minnesota State building, fire, plumbing, mechanical, accessibility and energy codes adopted by the State.  Piloted employee development and flexible workforce plans for the department.  Obtained the Minnesota building Official Training BOT grant in 2020.  Hired an Apprentice Building Inspector using the Minnesota BOT Grant and provided the required training and equipment to be successful. PERFORMANCE MEASURES 2019 2020 2021 Total number of inspections conducted 20,938 24,718 28,380 Average number of days for building plan reviews to be processed (application to issue permit) 17.16 8.8 8.18 Median number of days it takes to process a commercial plan review from (application to issue permit) 36.78 39.27 33.14 125 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— BUILDING INSPECTIONS DIVISION EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 1,601,526$ 1,687,174$ 1,800,677$ 1,960,120$ 2,058,760$ Contractual services 233,052 238,567 274,700 322,600 323,850 Commodities 18,734 12,248 26,650 23,000 24,500 Internal services 162,896 163,572 176,616 169,262 173,658 General fund subtotal 2,016,208 2,101,561 2,278,643 2,474,982 2,580,768 Other Funds Equipment replacement - - - - - Department Total Budget 2,016,208$ 2,101,561$ 2,278,643$ 2,474,982$ 2,580,768$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Building Inspections Expenditures Personal services 80% Contractual services 12% Commodities 1% Internal services 7% Inspections Expenditures by Type 126 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT Public Health Division DIVISION OVERVIEW The Edina Public Health Division, through a delegation agreement with the Minnesota Department of Health, is responsible for the licensing and inspection of food and beverage establishments, lodging facilities, temporary food events and public swimming pools in the city. These include restaurants, schools, daycares, hotels, apartment complex pools, the Aquatic Center and food vendors at various events. The Community Health Division performs plan reviews for new facilities, investigates foodborne illness complaints, reports waterborne illnesses and responds to disasters such as fires or wastewater backups in regulated facilities. In addition, the Division licenses and conducts inspections of all rental housing in the City, including single family homes, condominium and townhome units, and apartment buildings. The rental housing program focuses on tenant safety and property maintenance. Public health nuisance complaint investigations, property maintenance inspections and code enforcement activities are also conducted by the Division. These activities range from simple maintenance issues to calls from Police or Fire to order abatement of extreme public health nuisance conditions in a property. The Edina Public Health Division consists of seven full-time staff members and one paid summer internship position. Each summer the intern assist with code enforcement activities and gain exposure to public and environmental health regulation. The Division manages four grants from the Minnesota Department of Health to the Edina Community Health Board, which funds contracts with Bloomington Public Health for public health activities in Edina. The Community Health Administrator manages the grants and acts as the liaison to the Community Health Commission. The Division is also responsible for oversight of the residential recycling and organics collection program, which pro- vides service to over 14,000 residential households. The Division also manages some programs created by local ordinance, including regulation of body art, massage facilities and noise complaints. DIVISION ORGANIZATIONAL CHART 127 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— PUBLIC HEALTH DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Developed and implemented rental housing program, including addition of three full-time staff.  Adapted rental housing staff into COVID-19 hotline, answering questions from residents and businesses.  Assisted Bloomington Public Health with vaccine clinics conducted at Bloomington Civic Plaza.  Developed and implemented citywide organics recycling program, including hiring of full-time staff person to man- age program. 2022-2023 DIVISION GOALS  Increase participation in citywide organics recycling program.  Increase awareness/education efforts for recycling to increase capture rate of recyclable materials.  Resume residential rental housing licensing and inspection program at full capacity after pause during COVID-19.  Evaluate licensing/permitting/code enforcement software needs with possible purchase of new software system in cooperation with other City Departments. 128 CITY OF EDINA, MINNESOTA FIRE DEPARTMENT— PUBLIC HEALTH DIVISION PERFORMANCE MEASURES 2019 2020 2021 Total number of food, pool, and lodging inspections conducted by staff 385 343 364 Total number of foodborne illness complaints or investigations 22 10 14 Total number of regulatory inspections conducted by staff 603 589 579 Total number of rental inspections conducted No Survey 140 145 Total number of code enforcement investigation No Survey 96 56 EXPENDITURES Personal services 49% Contractual services 42% Capital Outlay 1% Commodities 4% Central Services 4% Community Health Expenditures by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 337,414$ 1,063,313$ 659,191$ 652,911$ 686,430$ Contractual services 228,233 1,359,137 452,533 426,996 453,996 Capital Outlay - 34,047 - - - Commodities 2,689 246,212 9,000 9,000 9,000 Central Services 33,750 47,304 51,732 65,451 67,136 Total 602,086$ 2,750,013$ 1,172,456$ 1,154,358$ 1,216,562$ Community Health Expenditures 129 CITY OF EDINA, MINNESOTA H UMAN RESOURCES DEPARTMENT Kelly Curtin, Director kcurtin@EdinaMN.gov 952-826-0402 DEPARTMENT OVERVIEW The Human Resources Department is dedicated to working with other City departments to support the goals of the City by promoting a work environment that is characterized by Edina’s values of Integrity, Quality and Service (IQS). The Department is responsible for: developing recruitment and selections systems to hire top talent; designing, implementing and negotiating cost-effective compensation and benefits plans; developing employment policies based on best management practices; and compliance with employment laws. The Human Resources Department also provides leadership consulting, employee training and provides guidance and support with regard to employee and labor relations. MAJOR SERVICE AREAS  Compensation and benefits  Employee and labor relations  Employment policies  Leadership and organizational development  Employee safety and wellness  Payroll  Performance management  Recruitment and selection  Risk management  Training DEPARTMENT ORGANIZATIONAL CHART 130 CITY OF EDINA, MINNESOTA 2022-2023 DEPARTMENT GOALS  Support continued implementation of additional Enterprise Resource Planning (ERP) system modules, including change management and continued training for employees.  Ensure continued progress on the Race & Equity Implementation plan, including increasing the number of people of color and providing continued foundational and advanced training related to race & equity.  Begin the development of a comprehensive risk management and loss control program, focused on improving safety, minimizing risk to property and employees, and cost containment. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Supported Enterprise Resource Planning (ERP) system implementation, including change management for employees.  Ensured progress on the Race & Equity Implementation plan, including identifying various metrics in the new Enterprise Resource Planning (ERP) software that can be used to identify areas of success related to the Plan.  Supported HR response to pandemic, including developing additional programs and policies to help ensure the safety and well-being of employees. HUMAN RESOURCES DEPARTMENT PERFORMANCE MEASURES 2019 2020 2021 Workers’ compensation claims resulting in lost time or medical treatment 29 20 26 Full time employee count 324 327 330 Percentage of employees retained per year 95% 95% 89% 131 CITY OF EDINA, MINNESOTA HUMAN RESOURCES DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 954,913$ 825,423$ 940,985$ 1,193,917$ 1,218,916$ Contractual services 39,737 229,751 290,900 179,220 214,220 Commodities 2,132 9,770 27,800 28,100 28,100 Internal services 36,271 53,208 57,600 60,773 62,274 General fund subtotal 1,033,053 1,118,152 1,317,285 1,462,010 1,523,510 Other Funds Risk management fund 338,575 683,917 1,096,173 1,101,903 1,107,234 Department Total Budget 1,371,628$ 1,802,069$ 2,413,458$ 2,563,913$ 2,630,744$ Human Resources Expenditures Personal services 80% Contractual services 15% Commodities 1%Internal services 4% Human Resources Expenditures by Type 132 CITY OF EDINA, MINNESOTA INFORMATION TECHNOLOGY DEPARTMENT Ryan Browning, Director rbrowning@EdinaMN.gov 952-826-0434 DEPARTMENT OVERVIEW The I.T. Department's primary goal is to enable access to City information and services conveniently, securely and efficiently. The I.T. Department provides the technology services required by City departments, offices and facilities, including data center operations; network and telecommunications services; end-user support; strategic technology investigation; project oversight; and administration of the City’s hardware, software, and infrastructure contracts and agreements. The Department provides strategic direction for GIS integration into department workflows and coordi- nates sharing of GIS data with the public. They work to provide the vision, leadership and skills that will enable the City to benefit from technological innovation and improve service to the community. The Department provides support to approximately 416 domain users and 675 computers and servers. MAJOR SERVICE AREAS  Network & Server Planning and Support  End-user support and training  Geographic Information Systems (GIS)  Cybersecurity Planning and Response  Data Analysis, Compilation and Visualization  Hardware & Software Installation and Support DEPARTMENT ORGANIZATIONAL CHART I.T. Director I.T. Specialists (4) (1 PT) I.T. Systems Administrator Senior I.T. Specialist GIS Coordinator 133 CITY OF EDINA, MINNESOTA INFORMATION TECHNOLOGY DEPARTMENT 2022-2023 DIVISION GOALS  Manage squad laptop replacements and support Public Safety Software implementation.  Increase GIS integration into city systems to provide additional opportunities for analysis .  Incorporate additional Office 365 tools for greater efficiency. 2020-2021 DIVISION ACCOMPLISHMENTS  Initiated and sustained support for a rapid shift to remote work for city staff.  Increased GIS usage for various COVID-19 related tracking and planning.  Manage Enterprise Resource Planning (ERP) implementation. PERFORMANCE MEASURES 2019 2020 2021 Percentage of employees who said the service provided and the results “exceeded expectations or more” in the I.T. Client Survey 80% 88% 100% Internal network and server up-time 100% 99.97% 99.99% 134 CITY OF EDINA, MINNESOTA INFORMATION TECHNOLOGY DEPARTMENT EXPENDITURES 2020 2021 2022 2023 Actual Budget Budget Budget Information Technology Fund** Personal services 807,674$ 891,256$ 1,262,045$ 1,328,394$ Contractual services 574,261 720,850 871,400 870,300 Commodities 13,837 165,000 170,000 175,000 Construction Fund Equipment replacement 58,347 76,000 - - Capital outlay 45,907 - 50,000 30,000 Total 1,500,026$ 1,853,106$ 2,353,445$ 2,403,694$ **These costs were charged back as central service expenditures prior to 2020 and are now accounted for as an internal service fund. Information Technology Expenditures Personal services 53% Contractual services 37% Commodities 6% Equipment replacement 2%Capital outlay 2% Information Technology Expenditures by Type 135 CITY OF EDINA, MINNESOTA DEPARTMENT OVERVIEW The Parks & Recreation Department is responsible for administering and maintaining the entire parks system. This includes 45 parks and open spaces that total 1,563 acres of property, including park enterprise facilities. The department coordinates park maintenance, adaptive recreation, adult and youth recreation, and works with 14 athletic associations, the Edina Garden Council and the Edina Historical Society. The Parks & Recreation Director acts as staff liaison to the Parks & Recreation Commission, which advises the City Council on parks and recreation issues. Staff consists of approximately 40 full-time employees and approximately 500 part-time seasonal staff, including playground leaders, ice rink attendants, arts and craft specialists, concession employees, sports instructors, recreation supervisors, administrative staff and maintenance personnel. MAJOR SERVICE AREAS  Park Maintenance & Natural Resources  Enterprise facilities  Recreation programs  Forestry  Park design  Special events  Strategic planning  Project management  Edina Liquor P ARKS & RECREATION DEPARTMENT Perry Vetter, Director pvetter@EdinaMN.gov 952-826-0430 DEPARTMENT ORGANIZATIONAL CHART 136 CITY OF EDINA, MINNESOTA 2022-2023 DEPARTMENT GOALS  Implement Next Generation Tree Program with the goal of planting a 1000 trees.  Construct Lewis Park playground.  Commence Strachauer Park master planning process in alignment with 4D process. PARKS & RECREATION DEPARTMENT 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Moved Park building and shelter reservations online.  Completed the renaming of Yancey Park and Duggan Park.  Adapted and added programs, activities and special events in response to the COVID-19 pandemic.  Implemented new registration and program management software. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of parks as “excellent” or “good” in the Quality of Life Survey 94% No Survey 93% Percentage of residents who, from their experience, rate the recrea- tion programs and classes “excellent” or “good” in the Quality of Life Survey 93% No Survey 84% Countryside Park Edinborough Park 137 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 732,570$ 784,263$ 942,411$ 905,090$ 937,568$ Contractual services 182,726 135,698 220,100 289,550 294,650 Capital Outlay - 41,000 - - - Commodities 69,769 19,999 7,900 18,300 18,900 Internal Services 86,463 93,180 100,548 102,686 105,239 Total 1,071,528$ 1,074,140$ 1,270,959$ 1,315,626$ 1,356,357$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Park Administration Expenditures Personal services 71% Contractual services 19% Commodities 2% Internal Services 8% Park Administration Expenditures by Type 138 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 263,359$ 109,417$ 330,603$ 419,626$ 430,832$ Contractual services 464,311 198,722 485,995 630,882 641,548 Commodities 62,117 63,156 76,100 79,400 84,755 Total 789,787$ 371,295$ 892,698$ 1,129,908$ 1,157,135$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Recreation Expenditures Personal services 36% Contractual services 56% Commodities 8% Recreation Expenditures by Type 139 CITY OF EDINA, MINNESOTA Art Center PARKS & RECREATION DEPARTMENT DIVISION OVERVIEW The Edina Art Center is a community asset providing educational programs for all ages in the visual arts. Residents and guests may take a class, attend a lecture, roam the galleries and gift shop to view and purchase local and regional art- work. Historically, the Art Center has covered its cost recovery goals by donations from the public and transfers from two other City funds. Traditionally, the Liquor Fund supports operations and the Construction Fund supports building improvement projects. The Edina Arts & Culture Commission advises the City Council on artistic and cultural initiatives in Edina. The General Manager of the Art Center acts as staff liaison to the Commission and its working groups. DIVISION ORGANIZATIONAL CHART Art Center General Manager Pottery Supervisor & Exhibitions Coordinator Instructors (65) Office Coordinator (PT) Customer Service Specialists 140 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT— ART CENTER 2022-2023 DIVISION GOALS  Update public art inventory including GIS data.  Complete facility study for alternate pottery and program space. 2020-2021 DIVISION ACCOMPLISHMENTS  Evaluated facility and program use from participants living outside Edina.  Determined a process for inventory and maintenance responsibilities for the Public Art assets.  Partnered with the Edina Crime Prevention Fund to host the Fall Into the Arts Festival in 2021. PERFORMANCE MEASURES 2019 2020 2021 Residents, who, from their experience, rate the quality of the Art Center as “excellent” or “good” in the Quality of Life Survey 88% No Survey 91% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 65% 68% 66%* Energy Use Index of the Art Center building (kBtu/ft²) 174.4 118 TBD * Projected 141 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT— ART CENTER EXPENDITURES Personal services 69% Contractual services 13% Commodities 8% Internal services 9% Depreciation 1% Art Center Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Sales 35,258 8,608 45,431 44,980 44,980 Memberships 15,102 3,369 15,664 15,664 15,664 Class registration & other 366,613 30,593 441,839 441,839 441,839 Investment income 6,217 (36) - - - Donations 15,425 13,714 10,000 - - Revenues 438,615 56,248 512,934 502,483 502,483 Expenses Cost of sales and services 2,758 1,063 500 500 500 Personal services 490,325 223,469 579,389 582,296 601,125 Contractual services 90,792 38,573 109,545 114,819 115,819 Commodities 54,665 10,969 76,500 76,500 79,000 Internal services 41,243 68,862 75,838 62,457 64,684 Depreciation 5,890 5,891 6,000 6,000 6,000 Expenses 685,673 348,827 847,772 842,572 867,128 Income (loss) before transfers (247,058)$ (292,579)$ (334,838)$ (340,089)$ (364,645)$ Art Center Revenues and Expenses 142 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Aquatic Center DIVISION OVERVIEW The Aquatic Center is a unique, high-volume facility that accommodates swimmers of all ages and a wide range of activities, including recreational swimming, competitive swimming, lap swimming and swimming lessons. The Aquatic Center is open for 11 weeks from June-August. The financial success of the Aquatic Center is highly dependent on the weather and the sale of daily admissions. The full-time staff consists of four positions with shared responsibilities. There are two full-time employees (General Manager and Assistant Manager ) who have year-round responsibility for Edinborough Park and the Aquatic Center during the summer season. There is also one full-time Certified Pool Operator, who is dedicated to the Aquatic Center in the summer and also works in Park Maintenance the remainder of the year. The Aquatic Center hires approximately 85 seasonal staff, including assistant managers, lifeguards, concession, admissions and facility services em- ployees. DIVISION ORGANIZATIONAL CHART 143 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—AQUATIC CENTER 2022-2023 DIVISION GOALS  Develop seasonal staffing plan to improve customer service.  Complete filter room and other capital projects to project assets. 2020-2021 DIVISION ACCOMPLISHMENTS  Closed in 2020 due to the COVID-19 Pandemic.  Completed projects to upgrade the zip line, dry play area, stair towers and filter room. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of the Aquatic Center as “excellent” or “good” in the Quality of Life Sur- vey 95% No Survey 91% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 157% 135% 131%* * Projected 144 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—AQUATIC CENTER EXPENDITURES Cost of sales and services 4% Personal services 38% Contractual services 16% Commodities 8% Internal services 4% Depreciation 29% Bond interest 1% Aquatic Center Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Concessions & retail sales 127,626 - 126,800 132,500 132,500 Memberships 406,377 (3,687) 440,000 440,000 460,000 Admissions 399,359 - 411,375 415,000 425,000 Building rental 62,478 83 62,700 70,720 70,720 Investment income 76,655 61,480 26,000 20,000 20,000 Charges for services & other fees 938 (32) - 850 850 Other nonoperating revenue 10,900 - - - - Total revenues 1,084,333 57,844 1,066,875 1,079,070 1,109,070 Expenses Cost of sales and services 48,173 - 49,474 51,750 52,250 Personal services 383,267 11,501 464,478 518,515 532,559 Contractual services 136,842 35,202 217,768 190,509 190,234 Commodities 78,595 5,092 77,100 132,600 114,700 Internal services 33,757 39,236 44,281 41,819 43,183 Depreciation 277,333 280,519 284,500 290,000 290,000 Bond interest 21,411 13,822 11,209 7,439 4,775 Total expenses 979,378 385,372 1,148,810 1,232,632 1,227,701 Income (loss) before transfers 104,955$ (327,528)$ (81,935)$ (153,562)$ (118,631)$ Aquatic Center Revenues and Expenses 145 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Edinborough Park DIVISION OVERVIEW Edinborough Park is Minnesota’s unique indoor public park. The enclosed, one-acre park includes a swimming pool, a running track and fitness equipment, multi-purpose activity area, 250-seat amphitheater, and Adventure Peak. One of the most unique features of the park is Adventure Peak, which is the largest and tallest indoor play structure in the region. Each week during the school year, there is free entertainment consisting of music, dance, theater and visual arts programs. Revenue is generated by season passes, daily admissions, birthday parties, facility rentals and association fees charged to neighboring residents and businesses. Edinborough Park covers the cost recovery goals by the Edinborough Park dedication funds. DIVISION ORGANIZATIONAL CHART 146 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—EDINBOROUGH PARK 2022-2023 DIVISION GOALS  Research exterior wayfinding signage option to develop implementation and cost schedule.  Update marketing plan for greater visibility.  Implement items from asset management and energy efficiency study. 2020-2021 DIVISION ACCOMPLISHMENTS  Completed the southeast entrance plaza reconstruction project.  Adapted facility and program offerings in response to the COVID-19 pandemic. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of Edinborough Park as “excellent” or “good” in the Quality of Life Sur- vey 88% No Survey 89% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 104% 95% 95%* Energy Use Index of the Edinborough Park building (kBtu/ft²) 222 188 TBD * Projected 147 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—EDINBOROUGH PARK EXPENDITURES Cost of sales and services 4% Personal services 50% Contractual services 21% Commodities 9% Internal services 8%Depreciation 8% Edinborough Park Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Concessions sales 142,958$ 33,931$ 154,342$ 145,000$ 145,000$ Memberships 117,000 35,687 131,738 90,000 90,000 Admissions 708,965 173,183 678,636 698,000 698,000 Building rental 208,042 79,316 222,103 226,904 226,904 Equipment rental 5,346 2,001 6,500 4,000 4,000 Association fees and other 192,592 181,125 209,500 225,000 225,000 Investment income (loss)84,559 48,202 27,000 11,000 11,000 Other nonoperating revenues 7,440 3,509 - - - Total revenues 1,466,902 556,954 1,429,819 1,399,904 1,399,904 Expenses Cost of sales and services 77,286 18,649 81,618 78,000 78,000 Personal services 775,759 659,024 874,981 910,139 947,015 Contractual services 343,922 266,326 384,380 371,476 387,676 Commodities 143,546 102,160 144,700 171,750 149,900 Internal services 75,791 131,851 144,833 149,155 154,460 Depreciation 140,203 102,580 145,500 140,000 145,000 Total expenses 1,556,507 1,280,590 1,776,012 1,820,520 1,862,051 Income (loss) before transfers (89,605)$ (723,636)$ (346,193)$ (420,616)$ (462,147)$ Edinborough Park Revenues and Expenses 148 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Braemar Arena DIVISION OVERVIEW Braemar Arena features three indoor and one outdoor regulation-size ice sheets. Braemar is available for open skating, skating lessons, group rental, adult and youth hockey, Breakaway Academy, and figure skating programs. The facility is also home to the Braemar-City of Lakes Figure Skating Club, the Edina Hornets high school hockey teams and the Edina Hockey Association. Braemar Arena currently operates with seven full-time employees. During prime season, a typical high activity time will have one full-time staff member on-duty, three rink attendants and 2-4 concession stand employees. Besides the full- time employees, Braemar Arena has approximately 90 part-time employees. Liquor store operational profits continue to subsidize Braemar Arena’s cost recovery. The City’s Construction Fund provides for annual capital improvement needs. DIVISION ORGANIZATIONAL CHART 149 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR ARENA 2022-2023 DIVISION GOALS  Research and implement work order system for maintenance and operational needs. 2020-2021 DIVISION ACCOMPLISHMENTS  Completed technology enhancements and added ability to livestream games.  Completing the dehumidification unit project.  Adapted facility and program offerings in response to the COVID-19 pandemic.  Agreed upon on partnership with Breakaway Academy. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of Braemar Arena as “excellent” or “good” in the Quality of Life Survey 96% No Survey 91% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 121% 114% 113%* Energy Use Index of the Arena building 105.8 106.7 TBD * Projected 150 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR ARENA EXPENDITURES Cost of sales and services 3% Personal services 33% Contractual services 31% Commodities 4% Internal services 6% Depreciation 21% Bond interest & other 2% Arena Fund Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Concessions & retail sales 303,142 87,155 318,672 310,000 310,000 Admissions 258,440 38,111 250,787 245,000 255,000 Building rental 1,889,204 1,421,282 1,899,750 1,969,739 1,969,739 Rental of equipment 9,310 27,860 33,269 33,000 33,000 Charges for Services & other 56,528 63,601 54,464 75,000 75,000 Investment income (loss)14,544 8,858 7,000 3,000 3,000 Other nonoperating revenue - - - - - Total revenues 2,531,168 1,646,867 2,563,942 2,635,739 2,645,739 Expenses Cost of sales and services 106,194 29,546 114,591 111,000 111,000 Personal services 964,082 858,824 1,086,231 1,204,319 1,248,641 Contractual services 941,360 963,406 983,521 1,062,622 1,007,222 Commodities 100,109 99,182 106,112 134,250 140,750 Internal services 95,901 192,950 212,718 236,115 244,365 Depreciation 666,629 665,072 665,000 660,000 665,000 Bond interest & other 108,398 77,421 73,242 64,109 58,436 Total expenses 2,982,673 2,886,401 3,241,415 3,472,415 3,475,414 Income (loss) before transfers (451,505)$ (1,239,534)$ (677,473)$ (836,676)$ (829,675)$ Arena Revenues and Expenses 151 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Braemar Field DIVISION OVERVIEW Braemar Field is a 250-by-400 foot turf field that is covered seasonally by a dome. The facility also includes an accessory building and storage facility for the dome components during the offseason. Braemar Field is located to the north of Braemar Arena and is operated by Braemar Arena staff. The dome season runs November through April. Braemar Field is used by the Edina Baseball Association, Edina Football Association, Edina Lacrosse Association and Edi- na Soccer Club. The facility charges a participant use fee to supplement revenues in order to recover 100% of operating costs and provide for a fund to pay for the replacement of turf and dome fabric when needed. DIVISION ORGANIZATIONAL CHART 152 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR FIELD 2022-2023 DIVISION GOALS  Host and support events by the Edina Chamber at Braemar Field. 2020-2021 DIVISION ACCOMPLISHMENTS  Implemented new operation activities schedule for revenue enhancement during non-prime hours.  Developed operations plan for maintaining new and existing facilities. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of Braemar Field as “excellent” or “good” in the Quality of Life Survey 97% No Survey 99% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 169% No Survey 122% 153 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR FIELD EXPENDITURES Personal services 16% Contractual services 19% Commodities 3% Internal services 4% Depreciation 58% Braemar Field Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Admissions 30,965 51,282 23,646 25,000 25,000 Building rental 546,637 297,862 447,523 485,000 535,000 Class registration & other 319 54 1,000 - - Investment income (loss)30,085 32,738 14,000 11,000 11,000 Total revenues 608,006 381,936 486,169 521,000 571,000 Expenses Personal services 154,390 91,422 173,828 145,293 150,689 Contractual services 158,261 73,680 190,900 202,070 211,070 Commodities 29,850 15,936 22,000 23,250 25,250 Internal services 17,550 32,622 35,719 37,569 38,779 Depreciation 512,850 513,080 516,000 514,000 514,000 Total expenses 872,901 726,740 938,447 922,182 939,788 Income (loss) before transfers (264,895)$ (344,804)$ (452,278)$ (401,182)$ (368,788)$ Braemar Field Revenues and Expenses 154 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Braemar Golf Operations DIVISION OVERVIEW Braemar Golf Course is a nationally recognized public golf course operated by the City of Edina. Braemar Golf recently opened a newly remodeled Championship 18 course in 2019, marking the first new public 18-hole course to open in the state in more than a decade. Braemar Golf Course has a complete year-round experience for golfers. Braemar has an 18-hole course, the Academy 9 Par 3 course, an enlarged putting green, a chipping and bunker practice space, remodeled Pro Shop, Red River Kitchen restaurant, the Courtyard for games and events, and Braemar Golf Dome for practice in the offseason. The 2017 and 2018 financials were impacted by the 18-hole course being closed while under construction in those years. DIVISION ORGANIZATIONAL CHART 155 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR GOLF 2022-2023 DIVISION GOALS  Explore options for creating a curling rink on the courtyard.  Explore options for expanding parking at the golf dome.  Review solution for golf instruction demand. 2020-2021 DIVISION ACCOMPLISHMENTS  Completed a restructure of the professional golf staff to meet additional demand.  Hosted a regionally significant Pro-Am.  Implemented TopTracer technology and league offerings at the Golf Dome. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of Braemar Golf as “excellent” or “good” in the Quality of Life Survey 94% No Survey 93% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 124% 138% 160%* Energy Use Index of the Braemar Golf buildings 118.5 103.8 TBD 156 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—BRAEMAR GOLF EXPENDITURES Cost of sales and services 4% Personal services 42% Contractual services 14% Commodities 9% Internal services 6% Depreciation 20% Bond interest 5% Golf Fund Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Retail & Concessions sales 248,583 181,514 252,364 260,000 260,000 Memberships 132,899 128,506 128,459 130,000 130,000 Admissions 514,506 641,443 500,000 900,000 900,000 Building rental 113,777 40,147 190,000 190,000 251,000 Equipment rental 351,349 284,148 397,940 340,000 325,000 Greens fees 2,017,887 2,663,755 2,572,909 2,680,000 2,685,000 Other operating revenue 17,614 32,126 2,584 11,500 11,500 Investment income 32,720 27,988 15,000 9,000 9,000 Total revenues 3,429,335 3,999,627 4,059,256 4,520,500 4,571,500 Expenses Cost of sales and services 181,708 143,578 129,706 191,000 191,000 Personal services 1,604,765 1,767,798 1,671,452 1,960,542 2,047,206 Contractual services 537,139 648,895 465,450 671,500 673,050 Commodities 459,697 354,575 274,000 390,000 391,000 Internal services 144,844 220,690 242,329 322,661 334,130 Depreciation 756,156 893,541 965,000 899,000 904,000 Bond interest 324,787 241,242 227,152 201,254 179,617 Total expenses 4,009,096 4,270,319 3,975,089 4,635,957 4,720,003 Income (loss) before transfers (579,761)$ (270,692)$ 84,167$ (115,457)$ (148,503)$ Braemar Golf Revenue and Expenses 157 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Centennial Lakes Park DIVISION OVERVIEW Centennial Lakes Park provides a unique social and recreational experience for Edina and the metropolitan area. The 24-acre site features more than 1.5 miles of paved pathways meandering around a 10-acre lake and boasts numerous amenities, including an amphitheater, putting course, lawn games area, paddleboats, fishing, winter ice skating, banquet space and a farmers market. The park and the adjacent Edina Promenade have a number of sculptures and works of public art for visitors to enjoy. Centennial Lakes has historically operating at a loss that is subsidized by the Liquor Fund. DIVISION ORGANIZATIONAL CHART General Manager – Centennial Lakes Operations Technician Assistant Manager – Centennial Lakes Maintenance Operations Coordinator Concessions / Clubhouse Staff (10 PT) Maintenance Operations Horticulture 158 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—CENTENNIAL LAKES PARK 2022-2023 DIVISION GOALS  Review storm water and fresh water management policies.  Explore opportunities for integrating Edina liquor for events and rentals. 2020-2021 DIVISION ACCOMPLISHMENTS  Developed construction guidance for public art installations.  Updated wayfinding signage.  Developed a farmers market newsletter.  Adapted facility and program offerings in response to the COVID-19 pandemic. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents who, from their experience, rate the quality of Centennial Lakes Park as “excellent” or “good” in the Quality of Life Survey 99% No Survey 96% Management cost recovery (measurement of facility’s ability to cover certain operating expenses) 85% 79% 77% Energy Use Index of the Centennial Lakes Pavilion 166.3 164.7 TBD 159 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—CENTENNIAL LAKES PARK EXPENDITURES Cost of sales and services 1% Personal services 58% Contractual services 18% Commodities 10% Internal services 9% Depreciation 4% Centennial Lakes Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Revenues Concessions sales 24,609$ 12,735$ 24,598 25,000$ 26,000$ Building rental 91,626 (2,899) 85,814$ 80,000 85,000 Equipment rental 159,149 67,368 129,196 151,000 157,000 Greens fees 227,081 163,129 235,423 240,000 245,000 Association fees and other 361,269 359,900 354,000 320,000 320,000 Investment income (loss)25,044 17,240 - 4,000 4,000 Other nonoperating revenue 14,434 13,757 - - - Total revenues 903,212 631,230 829,031 820,000 837,000 Expenses Cost of sales and services 10,105 5,455 9,795 12,000 12,000 Personal services 719,003 663,327 739,518 783,736 817,701 Contractual services 194,981 190,415 200,888 277,318 283,368 Commodities 141,266 88,340 126,200 143,500 148,950 Internal services 69,649 102,769 113,057 128,113 132,581 Depreciation 36,681 39,064 92,000 37,000 37,000 Total expenses 1,171,685 1,089,370 1,281,458 1,381,667 1,431,600 Income (loss) before transfers (268,473)$ (458,140)$ (452,427)$ (561,667)$ (594,600)$ Centennial Lakes Revenue and Expenses 160 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Parks Maintenance Division DIVISION OVERVIEW The City of Edina prides itself in providing premier public park facilities. The Park Maintenance division operates nearly 40 parks and recreational facilities, including Arneson Acres, Todd, Pamela, Arden and Highlands Parks and over a dozen warming houses. The activities of the division support more than a dozen athletic associations that serve thousands of athletic participants. DIVISION ORGANIZATIONAL CHART Parks Maintenance Supervisor City Forester Public Service Worker – Park Maintenance (15) Park Maintenance Seasonal Workers (50) Assistant Director – Parks and Natural Resources 161 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT— PARKS MAINTENANCE DIVISION 2022-2023 DIVISION GOALS  Review tree ordinance recommendation for commission workplans.  Develop a standard manual for park amenities.  Expand and update the park donation program and offerings. 2020-2021 DIVISION ACCOMPLISHMENTS  Conducted an evaluation of the City’s Tree Ordinance.  Completed Phase II of Hennepin County Recycling grant.  Completed hockey lighting upgrades at Highlands Park. PERFORMANCE MEASURES 2019 2020 2021 Percentage of residents rating the quality of parks maintenance service as “excellent” or “good” in the Quality of Life Survey 92% No Survey 91% Percentage of residents rating the condition of trails and sidewalks as “excellent” or “good” in the Quality of Life Survey 96% No Survey 90% 162 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT— PARKS MAINTENANCE DIVISION EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 2,248,248$ 2,264,482$ 2,485,536$ 2,619,069$ 2,721,521$ Contractual services 634,312 511,801 655,175 752,200 762,300 Commodities 265,884 219,284 320,900 322,000 329,500 Internal Services 403,496 483,216 509,700 492,518 502,730 General fund subtotal 3,551,940$ 3,478,783$ 3,971,311$ 4,185,787$ 4,316,051$ Construction Fund Equipment replacement 112,961 90,155 93,000 250,000 281,325 Total 3,664,901$ 3,568,938$ 4,064,311$ 4,435,787$ 4,597,376$ Park Maintenance Expenditures Personal services 61%Contractual services 16% Commodities 7% Internal Services 12% ​ 0% Equipment replacement 4% Park Maintenance Expenditures by Type 163 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT Edina Liquor DIVISION OVERVIEW The City operates three municipal stores. The liquor stores provide an exceptional service experience to customers. Profits from the municipal liquor operation are first used to subsidize the City’s recreation enterprises, including Braemar Arena, Centennial Lakes Park, and the Edina Art Center. Additional profit can be transferred to the City’s Capital Improvement Plan. Since its opening in 1948, it is estimated that Edina Liquor has generated revenue well over $25M that has been used for property tax relief and investment in public infrastructure. Edina continues to be one of the top-performing municipal operations in Minnesota. The four guiding objectives for Edina liquor are to:  Consistently provide funding to subsidize the City’s recreation enterprises and contribute to the City’s Capital Improvement Plan.  Consistently provide the best customer service experience in the metro area.  Control the sale of alcohol to ensure that sales are not made to minors or other individuals as provided by law.  Increase accountability to City Council, shareholders, and customers. DIVISION ORGANIZATIONAL CHART 164 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT— EDINA LIQUOR DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Implemented hybrid electric vehicles for delivery.  Reviewed staffing structure and implemented recommendations.  Conducted new store location study.  Adapted offerings and increased delivery demand in response to the COVID-19 pandemic. 2022-2023 DIVISION GOALS  Evaluate new point of sale systems.  Explore special event, programming tasting and classes.  Develop recommendation from store location study. PERFORMANCE MEASURES 2019 2020 2021 Gross margin percentage 30% 28% 28% Inventory turns (number of times per year liquor stores sell all inventory) 5.3 6 5.3 Transfers supporting the City’s enterprise facilities and capital projects $850,000 $600,000 $850,000* Total liquor profit $1.091M $858K $800K* * Projected 165 CITY OF EDINA, MINNESOTA PARKS & RECREATION DEPARTMENT—EDINA LIQUOR DIVISION EXPENDITURES Cost of sales and services 76% Personal services 15% Contractual services 5% Commodities 0% Internal services 3% Depreciation 1% Liquor Fund Expenses by Type 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget Operating revenues Retail sales 13,095,183$ 12,123,739$ 14,076,681$ 15,112,595$ 15,665,239$ Total revenues 13,095,183 12,123,739 14,076,681 15,112,595 15,665,239 Operating expenses Cost of sales and services 9,124,351 8,744,416 9,833,185 10,582,911 10,970,141 Personal services 1,727,088 1,777,211 1,855,852 2,373,276 2,490,550 Contractual services 652420 553,440 650,603 680,474 681,984 Commodities 56,111 43,548 55,050 76,300 70,600 Internal services 283,728 289,551 312,725 397,369 408,284 Depreciation 103,684 113,853 96,500 117,000 117,000 Total expenses 11,947,382 11,522,019 12,803,915 14,227,330 14,738,559 Income before transfers 1,147,801$ 601,720$ 1,272,766$ 885,265$ 926,680$ Liquor Fund Revenues and Expenses 166 CITY OF EDINA, MINNESOTA P OLICE DEPARTMENT Todd Milburn, Police Chief Tmilburn@EdinaMN.gov 952-826-0487 DEPARTMENT OVERVIEW The Police Department is responsible for maintaining public order and safety; enforcing the law; and preventing, detecting, and investigating criminal activities within the community. This mission is accomplished through the three divisions of the department: Administration, Investigations, Patrol. The police department is the largest department in the City with 57 sworn officers and 28 civilian staff. MAJOR SERVICE AREAS  Animal control  Computer forensics  Civilian services  911 Dispatch  Crime prevention  Drug Task Force  Investigations  Patrol  Property and evidence  School Resource Officers  Traffic DEPARTMENT ORGANIZATIONAL CHART Police Chief Patrol Division Investigations Division Administrative Division Deputy Police Chief 167 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT 2022-2023 DEPARTMENTAL GOALS  Increase resources, training, and coordination for responding to mental health-related calls for service.  Transitioning part-time social worker to a full-time position.  Increase shift coverage by adding additional supervisors to each patrol team.  Crisis Intervention Team, (CIT) training for all sworn officers by year end. Approximately half of the officers have already attended.  Replacement of all squad laptops. 2020-2021 DEPARTMENT ACCOMPLISHMENTS  Implementation of body worn cameras.  Hired a new police chief in August 2021.  Placed the police departments policy book online. PERFORMANCE MEASURES 2019 2020 2021 Percentage of respondents rating police services as “excellent” or “good” in the Quality of Life Survey 89% No Survey 94% 168 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budget Budget Budget General Fund Personal services 10,085,053$ 10,555,368$ 10,967,916$ 11,414,937$ 11,944,351$ Contractual services 884,200 808,640 955,070 1,063,012 1,140,448 Commodities 86,894 79,160 113,240 132,936 129,902 Central Services 1,264,970 1,333,508 1,504,296 1,564,930 1,600,848 General Fund Subtotal 12,321,117 12,776,676 13,540,522 14,175,815 14,815,549 Other Funds Police Special Revenue 153,258 200,047 147,882 264,500 137,000 Construction 488,550 891,986 1,271,450 446,550 809,550 Department Total Budget 12,962,925$ 13,868,709$ 14,959,854$ 14,886,865$ 15,762,099$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. Police Department Expenditures Personal services 83% Contractual services 7% Commodities 1% Central Services 9% Police Expenditures by Type 169 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT Patrol Division DIVISION OVERVIEW The Patrol Division is the uniformed portion of the police department most people are familiar with. It’s the people in uniform, driving marked police vehicles throughout the City and providing public safety to the community. Officers’ interactions are significant steps toward crime deterrence, crime prevention and nurturing positive community relations. DIVISION ORGANIZATIONAL CHART 170 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT— PATROL DIVISION 2022-2023 DIVISION GOALS  Implement a “check-up” from the “neck up” officer wellness program.  Evaluate the need for additional patrol sergeants for increased supervising.  Hire and field train several additional officers. 2020-2021 DIVISION ACCOMPLISHMENTS  Fully implemented a southwest consortium peer to peer support program.  Hired and trained three new officers.  Purchased, trained & equipped officers w/ additional less lethal weapons. PERFORMANCE MEASURES 2019 2020 2021 Number of impaired driving arrests per year 412 185 196 Number of traffic and misdemeanor citable violations per year 14,262 5,345 4,792 171 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT Investigations Division DIVISION OVERVIEW The Investigative Division is responsible for investigating crimes that occur within the City and processing case files for possible prosecution. The Investigations Division is comprised of one Lieutenant, two Sergeants, six Detectives, one Southwest Hennepin Drug Task Force Investigator, two School Resource Officers, two Retail Crime Investigators and a Crime Analyst. DIVISION ORGANIZATIONAL CHART Investigative Lieutenant Crime Analyst Detectives (6) Sergeants (2) Retail Crime Investigators (2) School Resource Officers (2) Drug Task Force Detective 172 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT— INVESTIGATIONS DIVISION 2022-2023 DIVISION GOALS  Reconfigure office space to accommodate Retail Crime Investigators.  Research procedures for background investigations.  Evaluate effectiveness of Social Worker. 2020-2021 DIVISION ACCOMPLISHMENTS  Added one Detective position to the division.  Moved Retail Crime Investigators to Investigations Division.  Fully implemented computer forensic detective role to work with a task force off-site. PERFORMANCE MEASURES 2019 2020 2021 Cases assigned to Investigators 1,077 1,060 1,066 173 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT Administrative Division DIVISION OVERVIEW The Administrative Division is responsible for 911 dispatch, records, Animal Control, Community Service Officers, coordinating special events, acquisition of equipment and the Police Explorer program. Edina’s 911 Communications Center staff handles thousands of calls for service annually for both the cities of Edina and Richfield. This provides an exceptional level of emergency and non-emergency assistance and customer service to community members. The Administrative Support staff is responsible for numerous behind the scenes functions in the department, including: records management, property and evidence management, finance, false alarm billing, data privacy and public information requests, specialized support to investigators and prosecutors for processing of criminal cases. They also respond to customer service requests to courts, partner agencies, city staff, and members of the community. A full-time Training Officer manages continuing education training for all employees of the department as well as mandated training for officers according to the Minnesota Peace Officer Standards and Training. DIVISION ORGANIZATIONAL CHART Administrative Lieutenant Dispatch Supervisor Admin Sergeant Officer Manager Property Evidence Specialist ACO Supervisor Records Specialist (3) Training Officer Lead Dispatchers (2) Receptionist Community Service Officers (5) Dispatchers FT (12) 174 CITY OF EDINA, MINNESOTA POLICE DEPARTMENT— ADMINISTRATIVE DIVISION 2022-2023 DIVISION GOALS  Continue working toward implementation of new records management system.  Increase and promote professional growth for current dispatchers.  Implement a quality assurance program. 2020-2021 DIVISION ACCOMPLISHMENTS  Formalized new employee training program.  Enhanced phone system to provide more accurate location information for wireless callers in an emergency.  Major updates and tests to our Continuity of Operations Plan (COOP).  Successful implementation of having staff work from home due to COVID-19. PERFORMANCE MEASURES 2019 2020 2021 Property room items/evidence disposed of after court disposition per state guidelines 1,808 2,004 3,794 All misdemeanor and gross misdemeanor cases submitted to the City Attorney for prosecution 882 459 469 Percent of alarm bills paid 78% 94.5% 79% 175 CITY OF EDINA, MINNESOTA P UBLIC WORKS DEPARTMENT Brian Olson, Director BOlson@EdinaMN.gov 952-826-0311 DEPARTMENT OVERVIEW Edina's roadway, water infrastructure, sanitary and storm sewer systems are in the care of the employees of Edina's Public Works Department. Employees maintain and provide these services in an efficient, responsible and professional manner. The Public Works Department is responsible for the City’s transportation infrastructure, public spaces, public services, and physical assets. The Department also maintains vehicles and equipment including automobiles, mowers, trucks of every description, snowplows, street sweepers, fire trucks, ambulances and police cars. MAJOR SERVICE AREAS  Roadway and sidewalk maintenance  Equipment operations  Utility operations  Asset management DEPARTMENT ORGANIZATIONAL CHART Director of Public Works Concrete Streets Division Public Works Coordinator Asphalt Streets Division Utilities Division Public Works Secretary Equipment Operations Division 176 CITY OF EDINA, MINNESOTA 2020-2021 DEPARTMENTAL ACCOMPLISHMENTS  Completed 5-7 miles of street overlay projects per year.  Installed salt storage facility to assist w/ road deicing efforts.  Completed the paining of the community center water tower. PUBLIC WORKS DEPARTMENT PERFORMANCE MEASURES 2019 2020 2021 Public service requests submitted to the Public Works Department 2062 1085 816 Percentage of residents rating street snow plowing services as “excellent” or “good” in the Quality of Life Survey 87% No Survey 90% Percentage of residents rating the overall ease of getting to the places visited as “excellent” or “good” in the Quality of Life Survey 86% No Survey 91% 2022-2023 DEPARTMENTAL GOALS  Implementation of change to citywide speed limit change.  Complete 7 miles of street overlay projects per year. 177 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT EXPENDITURES 2019 2020 2021 2022 2023 Actual Actual Budgeted Budgeted Budgeted General Fund Administration 945,304$ 962,746$ 966,687$ 790,430$ 812,850$ Streets 5,165,538 4,606,766 5,370,285 5,214,983 5,335,258 General fund subtotal 6,110,842 5,569,512 6,336,972 6,005,413 6,148,108 Other Funds Equipment operations**- 1,807,949 1,911,066 1,966,101 2,015,368 Construction 854,863 2,138,573 883,010 535,000 560,790 Utility operations 17,815,783 19,876,131 19,256,616 19,605,891 20,341,298 Department Total Budget 24,781,488$ 29,392,165$ 28,387,664$ 28,112,405$ 29,065,564$ *For comparative purposes previous year figures may be adjusted to reflect realigned responsibilities. ** These costs were charged back as central service expenditures prior to 2020 and are now accounted for as an internal service fund. Public Works Expenses Administration 3% Streets 16%Equipment operations** 5% Construction 5% Utility operations 71% Public Works Expenses by Division and/or Service Area 178 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT Streets Division DIVISION OVERVIEW The Streets Division is responsible for the year-round maintenance and repair of more than 230 miles of City streets, public parking lots, street signs and pavement markings. This responsibility is managed by two department divisions: Asphalt (bituminous/blacktop) and Concrete Streets. Approximately 80 percent of Edina's streets are paved with a flexible bituminous pavement. All pothole repairs, street sweeping, crack sealing and a majority of overlay projects and sealcoating are performed by the Asphalt Streets crews. The Concrete Streets crews manage the concrete street repairs, concrete curb and gutter, sidewalk replacements and maintenance of the City’s traffic signs. DIVISION ORGANIZATIONAL CHART 179 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT—STREETS DIVISION 2022-2023 DIVISION GOALS  Complete annual mill and overlay program.  Create a snow event tracking system utilizing Automated Vehicle Location (AVL) equipment and new technology. 2020-2021 DIVISION ACCOMPLISHMENTS  Completed installation of salt storage facility.  Completed annual mill and overlay program.  Finalize adoptive management plan to improve deicing operations. PERFORMANCE MEASURES 2019 2020 2021 Average Pavement Condition Index (PCI) of Edina local streets 73 73 76 Number of potholes filled throughout the year 1,977 978 1,573 Percent of resident who rated Street Repair as "excellent" or "good" in the Quality of Life Survey 60% No Survey 57% 180 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT Utilities Division DIVISION OVERVIEW The City’s Utilities Division ensures that there is clean, safe water. There are three main components of the Utilities Division: pump, treat and distribute drinking water; sanitary sewer collection; and storm water collection. The City of Edina operates two water systems: The Morningside water system and the Edina water system. The Morningside system is supplied with treated surface water from the City of Minneapolis. While the water is from Minneapolis, Edina’s Utilities Division maintains the system’s piping. The Edina system gets its water from 18 ground- water wells. Once the water has been treated, it is distributed through a system of 200 miles of water main, four water towers and a ground reservoir. Sewage collection and flow is based on gravity and controlled by lift stations and pumps. The City collects and pumps sewage from a neighboring community where it eventually goes to a wastewater treatment facility operated by the Metropolitan Council. The City also collects storm water. During and after a rain or melt event, it is crucial that water is removed quickly from roadways so it doesn’t create a public safety issue. The water is routed to creeks, ponds, lakes and wetlands. These highly visible areas serve as natural treatment facilities for storm water, create wildlife habitat and add to the aesthetics of neighborhoods. The Utilities Division is responsible for managing, repairing and monitoring these water systems. DIVISION ORGANIZATIONAL CHART 181 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT—UTILITIES DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Completed maintenance rehabilitations of Wells 2 and 18.  Completed design of SCADA upgrade.  Completed community center water treatment rehabilitation.  Completed risk/resilience assessment for city water infrastructure. 2022-2023 DIVISION GOALS  Complete the well rehabilitation program for Well 8 &12.  Completed rehabilitation of lift station 3 & 6.  Installed fiber to water treatment plant 3 & 4.  Complete the installation of the SCADA upgrade. PERFORMANCE MEASURES 2019 2020 2021 Operating cost per 1 million gallons water pumped/produced $1,568 $1,700 $1,440 Percentage of unaccounted water within system (water produced but not billed) Goal is a minimal percent 1.8% 1.2% 1.2% Percentage of residents rating the quality of the City’s sanitary sewer services as “excellent” or “good” in the Quality of Life Survey 89% No Survey 89% 182 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT Equipment Operations Division DIVISION OVERVIEW The Equipment Operations Division serves as the City’s auto shop. It maintains more than $8M worth of vehicles and rolling stock. The mechanics who work in this division are responsible for routine maintenance and the emergency repairs necessary to keep the City’s fleet in operation during critical events such as snow plowing. DIVISION ORGANIZATIONAL CHART Public Works Garage 183 CITY OF EDINA, MINNESOTA PUBLIC WORKS DEPARTMENT—EQUIPTMENT OPERATIONS DIVISION 2020-2021 DIVISION ACCOMPLISHMENTS  Conducted weekly inspections of emergency vehicle apparatuses.  Implemented equipment replacement plan. 2022-2023 DIVISION GOALS  Complete the equipment operations customer satisfaction survey. PERFORMANCE MEASURES 2019 2020 2021 Total gallons of fuel usage for City equipment Diesel fuel Unleaded Fuel 82,211 99,515 59,815 92,825 69,901 83,701 Number of repair orders submitted to the equipment operations division 1,910 1,166 1,319 Strong Foundation | Livable City | Reliable Service | Better Together FINANCIALS 185 CITY OF EDINA, MINNESOTA PROPERTY TAX LEVY BY YEAR Property Tax Levies Budget Budget 2019 2020 2021 2022 2023 General Fund Levies General Operating Levy 30,009,121$ 32,021,243$ 33,986,471$ 36,708,036$ 38,947,298$ General Fund Subtotal 30,009,121 32,021,243 33,986,471 36,708,036 38,947,298 Increase From Prior Year (%)5.32%6.71%6.14%8.01%6.10% Arts and Culture Fund Levies Arts and Culture 20,000 20,000 20,000 - - Arts and Culture Fund Subtotal 20,000 20,000 20,000 - - Increase From Prior Year (%)0.00%0.00%0.00%-100.00%0.00% Debt Service Fund Levies City Hall Debt Service 952,000 952,000 - - - Gymnasium Debt Service 390,000 391,000 392,000 392,000 392,000 Fire Station Debt Service 406,000 402,000 402,000 403,000 403,000 Public Works Facility Debt Service 1,695,000 1,688,000 1,695,000 1,269,000 1,269,000 Sports Dome 1,168,900 1,163,300 1,162,400 1,168,000 1,166,000 Debt Service Fund Subtotal 4,611,900 4,596,300 3,651,400 3,232,000 3,230,000 Increase From Prior Year (%)0.70%-0.34%-20.56%-11.49%-0.06% Construction Fund Levies Capital Improvement Plan Levy 300,000 800,000 2,000,000 2,000,000 2,000,000 Equipment Levy 1,930,000 2,030,000 2,130,000 2,240,000 2,350,000 Street Reconstruction Levy - - - 950,000 1,210,400 Weber Woods NOTE 1 400,000 - - - - Construction Fund Subtotal 2,630,000 2,830,000 4,130,000 5,190,000 5,560,400 Increase From Prior Year (%)2.45%7.60%45.94%25.67%7.14% HRA Fund Levies HRA Operating Levy 160,000 192,000 230,400 237,300 244,400 HRA Fund Subtotal 160,000 192,000 230,400 237,300 244,400 Increase From Prior Year (%)28.00%20.00%20.00%2.99%2.99% Total Property Tax Levy 37,431,021$ 39,659,543$ 42,018,271$ 45,367,336$ 47,982,098$ Increase From Prior Year (%)4.60%5.95%5.95%7.97%5.76% 186 CITY OF EDINA, MINNESOTA BIENNIAL BUDGET— ALL FUNDS AND YEARS This page represents all of the financial activities of the City consolidated into one place. Consolidated Budget Summary 2020 2021 2022 2023 Actual Budget Budget Budget REVENUES AND OTHER FINANCING SOURCES Property tax levy 39,509,239$ 42,018,271$ 45,367,336$ 7.97%47,982,098$ 5.76% Tax increments 6,452,819 7,969,700 1,670,245 -79.04%1,723,245 3.17% Franchise fees & other taxes 3,079,705 3,182,000 3,120,000 -1.95%3,120,000 0.00% Special assessments 4,629,551 4,281,222 4,624,553 8.02%3,726,253 -19.42% Licenses and permits 6,454,749 5,258,514 5,464,560 3.92%5,540,160 1.38% Intergovernmental 11,758,668 2,888,218 6,120,309 111.91%4,700,100 -23.20% Charges for services 4,968,288 5,636,930 5,932,905 5.25%6,140,291 3.50% Fines and forfeitures 485,472 950,000 650,000 -31.58%650,000 0.00% Operating revenue 45,508,128 52,586,578 54,251,591 3.17%56,338,941 3.85% Investment income 2,781,450 1,039,925 1,036,000 -0.38%1,036,000 0.00% Other revenue 3,731,363 726,761 687,622 -5.39%687,622 0.00% Debt issued 2,025,176 3,144,387 1,768,370 -43.76%2,813,402 59.10% Other financing sources 151,595 28,135 250,000 788.57%- -100.00% TOTAL REVENUES AND OTHER FINANCING SOURCES 131,536,203 129,710,641 130,943,491 0.95%134,458,112 2.68% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,350,260 2,379,841 3,092,833 29.96%3,150,731 1.87% Communications 1,255,366 1,495,409 1,829,674 22.35%1,706,364 -6.74% Information technology 104,253 - 50,000 NA 30,000 -40.00% Human resources 1,118,151 1,317,285 1,462,010 10.99%1,523,510 4.21% Finance 2,083,434 1,575,228 1,706,939 8.36%1,752,356 2.66% Public works 27,584,362 27,703,662 26,146,304 -5.62%27,050,196 3.46% Engineering 8,322,433 9,655,062 15,833,458 63.99%16,954,149 7.08% Police 15,295,562 17,743,443 16,624,982 -6.30%17,531,371 5.45% Fire 14,182,094 10,752,843 12,647,083 17.62%13,218,827 4.52% Parks & recreation 27,990,679 32,255,486 36,145,596 12.06%36,734,112 1.63% Community development 5,295,770 8,427,743 7,014,431 -16.77%4,709,140 -32.86% Debt service 7,872,730 7,287,877 6,004,168 -17.61%6,485,977 8.02% TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 113,455,094 120,593,879 128,557,478 6.60%130,846,733 1.78% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of goods sold 8,946,340 10,218,869 11,027,161 7.91%11,414,891 3.52% Personal services 41,718,816 45,333,488 48,417,757 6.80%50,422,723 4.14% Contractual services 21,433,776 22,130,672 28,186,990 27.37%26,298,850 -6.70% Commodities 4,180,993 4,696,946 4,898,369 4.29%4,933,495 0.72% Internal services 6,872,260 7,436,487 7,975,948 7.25%8,190,952 2.70% Equipment 3,624,078 2,495,960 1,728,550 -30.75%1,936,665 12.04% Capital outlay 9,421,171 11,426,741 10,856,385 -4.99%11,452,603 5.49% Depreciation 8,339,446 8,466,500 8,790,000 3.82%8,985,000 2.22% Debt service 8,918,214 8,388,216 6,676,318 -20.41%7,211,554 8.02%NA TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 113,455,094 120,593,879 128,557,478 6.60%130,846,733 1.78% CHANGE IN FUND BALANCE OR NET POSITION 18,081,109 9,116,762 2,386,013 3,611,379 FUND BALANCE OR NET POSITION - JANUARY 1 183,410,422 201,491,531 210,608,293 212,994,306 FUND BALANCE OR NET POSITION - DECEMBER 31 201,491,531$ 210,608,293$ 212,994,306$ 216,605,686$ 187 CITY OF EDINA, MINNESOTA 2020 ACTUAL AND 2021 BUDGET Pages 187-188 are a bridge to combine more detailed data found on pages 189-198. The summary totals agree with the Consolidated Budget Summary presented previously. Combined Budget Summary Governmental Enterprise Internal Service Governmental Enterprise Internal Service Funds Funds Funds Total Funds Funds Funds Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 39,509,239$ -$ -$ 39,509,239$ 42,018,271$ -$ -$ 42,018,271$ Tax increments 6,452,819 - - 6,452,819 7,969,700 - - 7,969,700 Franchise fees & other taxes 3,079,705 - - 3,079,705 3,182,000 - - 3,182,000 Special assessments 4,629,551 - - 4,629,551 4,281,222 - - 4,281,222 Licenses and permits 6,454,749 - - 6,454,749 5,258,514 - - 5,258,514 Intergovernmental 11,218,739 440,051 99,878 11,758,668 2,828,218 60,000 - 2,888,218 Charges for services 4,968,288 - - 4,968,288 5,636,930 - - 5,636,930 Fines and forfeitures 485,472 - - 485,472 950,000 - - 950,000 Operating revenue - 44,932,180 5,713,432 50,645,612 - 52,462,902 6,233,148 58,696,050 Investment income 1,835,870 945,580 - 2,781,450 626,805 413,120 - 1,039,925 Other revenue 3,648,492 82,871 - 3,731,363 660,761 66,000 - 726,761 Transfers and contributions 6,498,778 740,167 - 7,238,945 3,255,444 650,000 - 3,905,444 Debt issued 2,025,176 - - 2,025,176 3,144,387 - - 3,144,387 Other financing sources 151,595 - - 151,595 28,135 - - 28,135 TOTAL REVENUES AND OTHER FINANCING SOURCES 90,958,473 47,140,849 5,813,310 143,912,632 79,840,387 53,652,022 6,233,148 139,725,557 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY FUNCTION Administration 2,350,260 - - 2,350,260 2,379,841 - - 2,379,841 Communications 1,255,366 - - 1,255,366 1,495,409 - - 1,495,409 Information technology 104,253 - 1,493,369 1,597,622 - - 1,777,106 1,777,106 Human resources 1,118,151 - 699,570 1,817,721 1,317,285 - 1,096,173 2,413,458 Finance 1,748,293 335,141 - 2,083,434 1,220,537 354,691 - 1,575,228 Public works 7,708,088 19,876,274 1,808,929 29,393,291 8,446,946 19,256,716 1,911,066 29,614,728 Engineering 7,812,314 510,119 1,135,616 9,458,049 9,137,251 517,811 1,325,127 10,980,189 Police 13,902,758 1,392,804 - 15,295,562 16,132,310 1,611,133 - 17,743,443 Fire 14,182,094 - - 14,182,094 10,752,843 - 10,752,843 Parks & recreation 5,490,708 22,499,971 - 27,990,679 6,242,568 26,012,918 - 32,255,486 Community development 5,295,770 - - 5,295,770 8,427,743 - - 8,427,743 Debt service 7,872,730 - - 7,872,730 7,287,877 - - 7,287,877 Transfers and contributions 6,214,942 1,024,003 - 7,238,945 2,955,444 950,000 - 3,905,444 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 75,055,727 45,638,312 5,137,484 125,831,523 75,796,054 48,703,269 6,109,472 130,608,795 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of goods sold - 8,946,340 - 8,946,340 - 10,218,869 - 10,218,869 Personal services 33,235,882 8,482,934 1,903,556 43,622,372 34,844,101 10,489,387 2,375,247 47,708,735 Contractual services 7,728,689 13,705,087 2,118,652 23,552,428 9,279,995 12,850,677 2,382,450 24,513,122 Commodities 2,499,828 1,681,165 1,099,623 5,280,616 2,638,184 2,058,762 1,351,775 6,048,721 Internal services 4,458,407 2,413,853 - 6,872,260 4,867,752 2,568,735 - 7,436,487 Equipment 3,624,078 - - 3,624,078 2,495,960 - - 2,495,960 Capital outlay 9,421,171 - - 9,421,171 11,426,741 - - 11,426,741 Depreciation - 8,339,446 - 8,339,446 - 8,466,500 - 8,466,500 Debt service 7,872,730 1,045,484 - 8,918,214 7,287,877 1,100,339 - 8,388,216 Other expense - - 15,653 15,653 - - - - Transfers and contributions 6,214,942 1,024,003 - 7,238,945 2,955,444 950,000 - 3,905,444 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 75,055,727 45,638,312 5,137,484 125,831,523 75,796,054 48,703,269 6,109,472 130,608,795 CHANGE IN FUND BALANCE OR NET POSITION 15,902,746 1,502,537 675,826 18,081,109 4,044,333 4,948,753 123,676 9,116,762 FUND BALANCE OR NET POSITION - JANUARY 1 67,513,935 113,858,090 2,038,397 183,410,422 83,416,681 115,360,627 2,714,223 201,491,531 FUND BALANCE OR NET POSITION - DECEMBER 31 83,416,681$ 115,360,627$ 2,714,223$ 201,491,531$ 87,461,014$ 120,309,380$ 2,837,899$ 210,608,293$ 2020 Actual 2021 Budget 188 CITY OF EDINA, MINNESOTA COMBINED BUDGET SUMMARY 2022 AND 2023 BUDGET Governmental Enterprise Internal Service Governmental Enterprise Internal Service Funds Funds Funds Total Funds Funds Funds Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 45,367,336$ -$ -$ 45,367,336$ 47,982,098$ -$ -$ 47,982,098$ Tax increments 1,670,245 - - 1,670,245 1,723,245 - - 1,723,245 Franchise fees & other taxes 3,120,000 - - 3,120,000 3,120,000 - - 3,120,000 Special assessments 4,624,553 - - 4,624,553 3,726,253 - - 3,726,253 Licenses and permits 5,464,560 - - 5,464,560 5,540,160 - - 5,540,160 Intergovernmental 5,940,309 180,000 - 6,120,309 4,520,100 180,000 - 4,700,100 Charges for services 5,932,905 - - 5,932,905 6,140,291 - - 6,140,291 Fines and forfeitures 650,000 - - 650,000 650,000 - - 650,000 Operating revenue - 54,139,043 6,840,351 60,979,394 - 56,223,559 6,991,192 63,214,751 Investment income 655,000 381,000 - 1,036,000 655,000 381,000 - 1,036,000 Other revenue 667,622 20,000 - 687,622 667,622 20,000 - 687,622 Contributions - - - - - - - - Transfers 3,229,563 1,191,000 - 4,420,563 3,074,252 1,203,350 - 4,277,602 Loan received - - - - - - - - Debt issued 1,768,370 - - 1,768,370 2,813,402 - - 2,813,402 Other financing sources 250,000 - - 250,000 - - - - TOTAL REVENUES AND OTHER FINANCING SOURCES 79,340,463 55,911,043 6,840,351 142,091,857 80,612,423 58,007,909 6,991,192 145,611,524 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY FUNCTION Administration 3,092,833 - - 3,092,833 3,150,731 - - 3,150,731 Communications 1,829,674 - - 1,829,674 1,706,364 - - 1,706,364 Information technology 50,000 - 2,303,438 2,353,438 30,000 - 2,373,686 2,403,686 Human resources 1,462,010 - 1,101,903 2,563,913 1,523,510 - 1,107,234 2,630,744 Finance 1,297,658 409,281 - 1,706,939 1,340,388 411,968 - 1,752,356 Public works 6,540,413 19,605,891 1,966,101 28,112,405 6,708,898 20,341,298 2,015,368 29,065,564 Engineering 14,470,948 1,362,510 1,356,361 17,189,819 15,658,630 1,295,519 1,379,522 18,333,671 Police 14,886,865 1,738,117 - 16,624,982 15,762,099 1,769,272 - 17,531,371 Fire 12,647,083 - - 12,647,083 13,218,827 - - 13,218,827 Parks & recreation 7,610,321 28,535,275 - 36,145,596 7,471,868 29,262,244 - 36,734,112 Community development 7,014,431 - - 7,014,431 4,709,140 - - 4,709,140 Loan issued - - - - - - - - Debt service 6,004,168 - - 6,004,168 6,485,977 - - 6,485,977 Transfers 2,979,563 1,441,000 - 4,420,563 2,816,752 1,460,850 - 4,277,602 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 79,885,967 53,092,074 6,727,803 139,705,844 80,583,184 54,541,151 6,875,810 142,000,145 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of goods sold - 11,027,161 - 11,027,161 - 11,414,891 - 11,414,891 Personal services 36,942,679 11,475,078 2,739,463 51,157,220 38,473,537 11,949,186 2,861,770 53,284,493 Contractual services 13,787,885 14,399,105 2,620,440 30,807,430 11,659,239 14,639,611 2,628,440 28,927,290 Commodities 2,559,719 2,338,650 1,222,900 6,121,269 2,612,645 2,320,850 1,235,600 6,169,095 Internal services 5,027,018 2,948,930 - 7,975,948 5,145,766 3,045,186 - 8,190,952 Equipment 1,728,550 - - 1,728,550 1,936,665 - - 1,936,665 Capital outlay 10,856,385 - 145,000 11,001,385 11,452,603 - 150,000 11,602,603 Depreciation - 8,790,000 - 8,790,000 - 8,985,000 - 8,985,000 Loan issued - - - - - - - - Debt service 6,004,168 672,150 - 6,676,318 6,485,977 725,577 - 7,211,554 Other expense - - - - - - - - Contributions - - - - - - - - Transfers 2,979,563 1,441,000 - 4,420,563 2,816,752 1,460,850 - 4,277,602 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 79,885,967 53,092,074 6,727,803 139,705,844 80,583,184 54,541,151 6,875,810 142,000,145 CHANGE IN FUND BALANCE OR NET POSITION (545,504) 2,818,969 112,548 2,386,013 29,239 3,466,758 115,382 3,611,379 FUND BALANCE OR NET POSITION - JANUARY 1 87,461,014 120,309,380 2,837,899 210,608,293 86,915,510 123,128,349 2,950,447 212,994,306 2022 Budget 2023 Budget 189 CITY OF EDINA, MINNESOTA GOVERNMENTAL FUNDS The City uses two basic fund types to account for our financial activities, governmental and proprietary fund types. In general, governmental funds are used to account for traditional government services and proprietary funds are used to account for business-type activities, including internal service funds. 2020 Actual Financial Results by Fund Braemar Arts &Debt General HRA PACS CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 31,901,482$ 192,009$ -$ -$ -$ -$ -$ 20,000$ 4,578,234$ 2,817,514$ 39,509,239$ Tax increments - 6,452,819 - - - - - - - - 6,452,819 Franchise fees & other taxes 819,317 - 1,225,533 943,501 - - - - - 91,354 3,079,705 Special assessments - - - - - - - - 191,881 4,437,670 4,629,551 Licenses and permits 6,381,889 - - - - - - - - 72,860 6,454,749 Intergovernmental 5,976,630 199,000 - - 20,470 - - - 5,022,639 11,218,739 Charges for services 4,812,575 41,992 - - - - - - - 113,721 4,968,288 Fines and forfeitures 485,472 - - - - - - - - - 485,472 Investment income 597,073 489,463 3,736 44,917 - 37 3,690 1,929 - 695,025 1,835,870 Other revenue 611,880 2,613,409 - 1,500 - 174,292 350 2,309 - 244,752 3,648,492 Transfers and contributions 3,115,261 - - - - - - - 2,870,125 513,392 6,498,778 Debt issued - - - - - - - - 1,617,800 407,376 2,025,176 Other financing sources - - - - - - - - - 151,595 151,595 TOTAL REVENUES AND OTHER FINANCING SOURCES 54,701,579 9,988,692 1,229,269 989,918 20,470 174,329 4,040 24,238 9,258,040 14,567,898 90,958,473 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,306,277 - - - - - - - - 43,983 2,350,260 Communications 1,235,434 - - - - - - - - 19,932 1,255,366 Information technology - - - - - - - - - 104,253 104,253 Human resources 1,118,151 - - - - - - - - - 1,118,151 Finance 1,153,979 - - - - - - - - 594,314 1,748,293 Public works 5,569,515 - - - - - - - - 2,138,573 7,708,088 Engineering 2,483,997 - 1,771,936 249,620 - - - - - 3,306,761 7,812,314 Police 12,810,724 - - - - 200,048 - - - 891,986 13,902,758 Fire 12,634,678 - - - - - - - - 1,547,416 14,182,094 Parks & recreation 4,924,218 - - - - - 1,030 2,288 - 563,172 5,490,708 Community development 1,813,154 2,027,076 - - 20,470 - - - - 1,435,070 5,295,770 Debt service - - - - - - - - 7,872,730 - 7,872,730 Transfers - - - - - - - - - 6,214,942 6,214,942 TOTAL EXPENDITURES AND OTHER FINANCING USES 46,050,127 2,027,076 1,771,936 249,620 20,470 200,048 1,030 2,288 7,872,730 16,860,402 75,055,727 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 32,709,394 153,128 106,735 65,785 - - - - - 200,840 33,235,882 Contractual services 6,478,969 418,193 1,824 35,939 20,470 120,666 1,030 2,288 - 649,310 7,728,689 Commodities 2,343,778 1,624 12,307 390 - 66,738 - - - 74,991 2,499,828 Internal services 4,442,939 - 7,200 7,488 - - - - - 780 4,458,407 Equipment - - - - - 12,644 - - - 3,611,434 3,624,078 Capital outlay 75,047 1,454,131 1,643,870 140,018 - - - - 6,108,105 9,421,171 Debt service - - - - - - - - 7,872,730 - 7,872,730 Transfers - - - - - - - - - 6,214,942 6,214,942 TOTAL EXPENDITURES AND OTHER FINANCING USES 46,050,127 2,027,076 1,771,936 249,620 20,470 200,048 1,030 2,288 7,872,730 16,860,402 75,055,727 CHANGE IN FUND BALANCE 8,651,452$ 7,961,616$ (542,667)$ 740,298$ -$ (25,719)$ 3,010$ 21,950$ 1,385,310$ (2,292,504)$ 15,902,746$ 2020 GOVERNMENTAL ACTUAL FUND REVENUES AND EXPENDITURES 190 CITY OF EDINA, MINNESOTA 2020 ACTUAL FINANCIAL RESULTS BY FUND PROPRIETARY FUNDS - ENTERPRISE AND INTERNAL SERVICE Aquatic Golf Braemar Art Utilities Liquor Center Course Arena Field Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 25,731,887$ 12,117,414$ -$ 3,947,681$ 1,636,138$ 349,200$ 42,571$ 506,994$ 600,295$ 44,932,180$ Intergovernmental 420,189 - - 3,108 - - - - 16,754 440,051 Investment income 689,931 59,180 61,480 27,988 8,858 32,738 (36) 48,201 17,240 945,580 Other revenue 30,921 - - 20,848 1,873 - 13,714 1,758 13,757 82,871 Transfers and contributions - 3,226 143,999 48,954 338,772 951 125,000 10,329 68,936 740,167 TOTAL REVENUES AND TRANSFERS IN 26,872,928 12,179,820 205,479 4,048,579 1,985,641 382,889 181,249 567,282 716,982 47,140,849 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 335,141 - - - - - - - - 335,141 Public works 19,876,274 - - - - - - - - 19,876,274 Engineering 510,119 - - - - - - - - 510,119 Fire 1,392,804 - - - - - - - - 1,392,804 Parks and recreation - 11,522,017 389,011 4,270,317 2,886,405 726,741 335,526 1,280,583 1,089,371 22,499,971 Transfers and contributions 424,003 600,000 - - - - - - - 1,024,003 TOTAL EXPENSES AND TRANSFERS OUT 22,538,341 12,122,017 389,011 4,270,317 2,886,405 726,741 335,526 1,280,583 1,089,371 45,638,312 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 8,744,414 3,635 143,578 29,546 - 1,063 18,649 5,455 8,946,340 Personal services 2,443,657 1,777,207 11,502 1,767,791 858,829 91,424 210,170 659,027 663,327 8,482,934 Contractual services 10,935,136 553,445 35,205 648,902 963,406 73,680 38,572 266,326 190,415 13,705,087 Commodities 961,379 43,547 5,092 354,572 99,181 15,935 10,968 102,151 88,340 1,681,165 Internal services 1,335,322 289,551 39,236 220,690 192,950 32,622 68,862 131,851 102,769 2,413,853 Depreciation 5,725,846 113,853 280,518 893,542 665,072 513,080 5,891 102,579 39,065 8,339,446 Interest 712,998 - 13,823 241,242 77,421 - - - - 1,045,484 Transfers and contributions 424,003 600,000 - - - - - - - 1,024,003 TOTAL EXPENSES AND TRANSFERS OUT 22,538,341 12,122,017 389,011 4,270,317 2,886,405 726,741 335,526 1,280,583 1,089,371 45,638,312 CHANGE IN NET POSITION 4,334,587$ 57,803$ (183,532)$ (221,738)$ (900,764)$ (343,852)$ (154,277)$ (713,301)$ (372,389)$ 1,502,537$ 2020 PROPRIETARY FUND ACTUAL REVENUES AND EXPENDITURES 191 CITY OF EDINA, MINNESOTA GOVERNMENTAL FUNDS 2021 Budget by Fund Braemar Arts &Debt General HRA PACS CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 33,986,471$ 230,400$ -$ -$ -$ -$ -$ 20,000$ 3,651,400$ 4,130,000$ 42,018,271$ Tax increments - 7,969,700 - - - - - - - - 7,969,700 Franchise fees & other taxes 877,000 - 1,200,000 1,000,000 - - - - - 105,000 3,182,000 Special assessments - - - - - - - - - 4,281,222 4,281,222 Licenses and permits 5,179,514 - - - - - - - - 79,000 5,258,514 Intergovernmental 1,753,218 - - - 125,000 - - - - 950,000 2,828,218 Charges for services 5,434,930 2,000 - - - - - - - 200,000 5,636,930 Fines and forfeitures 950,000 - - - - - - - - - 950,000 Investment income 150,000 235,058 1,060 5,190 - 5 2,007 485 8,000 225,000 626,805 Other revenue 476,700 - - 7,000 - 172,061 2,500 2,500 - - 660,761 Transfers and contributions 50,000 - - - - - - - 2,955,444 250,000 3,255,444 Debt issued - - - - - - - - - 3,144,387 3,144,387 Other financing sources 28,135 - - - - - - - - - 28,135 TOTAL REVENUES AND OTHER FINANCING SOURCES 48,885,968 8,437,158 1,201,060 1,012,190 125,000 172,066 4,507 22,985 6,614,844 13,364,609 79,840,387 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,379,841 - - - - - - - - - 2,379,841 Communications 1,404,409 - - - - - - - - 91,000 1,495,409 Human resources 1,317,285 - - - - - - - - - 1,317,285 Finance 1,220,537 - - - - - - - - - 1,220,537 Public works 7,040,222 - - - - - - - - 1,406,724 8,446,946 Engineering 1,995,995 - 1,142,287 896,453 - - - - - 5,102,516 9,137,251 Police 14,712,978 - - - - 147,882 - - - 1,271,450 16,132,310 Fire 10,642,843 - - - - - - - - 110,000 10,752,843 Parks & recreation 6,134,968 - - - - - - 14,600 - 93,000 6,242,568 Community development 2,036,890 6,265,853 - - 125,000 - - - - - 8,427,743 Debt service - - - - - - - - 7,287,877 - 7,287,877 Transfers - - - - - - - - - 2,955,444 2,955,444 TOTAL EXPENDITURES AND OTHER FINANCING USES 48,885,968 6,265,853 1,142,287 896,453 125,000 147,882 - 14,600 7,287,877 11,030,134 75,796,054 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 34,263,697 190,353 120,202 165,109 - - - - - 104,740 34,844,101 Contractual services 7,183,342 1,363,000 75,000 123,100 125,000 92,882 - 14,000 - 303,671 9,279,995 Commodities 2,588,433 2,500 15,000 - - 7,500 - 600 - 24,151 2,638,184 Internal services 4,850,496 - 7,860 8,244 - - - - - 1,152 4,867,752 Equipment - - - - - 47,500 - - - 2,448,460 2,495,960 Capital outlay - 4,710,000 924,225 600,000 - - - - - 5,192,516 11,426,741 Debt service - - - - - - - - 7,287,877 - 7,287,877 Transfers - - - - - - - - - 2,955,444 2,955,444 TOTAL EXPENDITURES AND OTHER FINANCING USES 48,885,968 6,265,853 1,142,287 896,453 125,000 147,882 - 14,600 7,287,877 11,030,134 75,796,054 CHANGE IN FUND BALANCE -$ 2,171,305$ 58,773$ 115,737$ -$ 24,184$ 4,507$ 8,385$ (673,033)$ 2,334,475$ 4,044,333$ 2021 GOVERNMENTAL FUND BUDGETS 192 CITY OF EDINA, MINNESOTA 2021 BUDGET BY FUND PROPRIETARY FUNDS - ENTERPRISE AND INTERNAL SERVICE Aquatic Golf Braemar Art Utilities Liquor Center Course Arena Field Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 27,537,195$ 14,076,681$ 1,040,875$ 4,044,256$ 2,556,942$ 472,169$ 502,934$ 1,402,819$ 829,031$ 52,462,902$ Intergovernmental 60,000 - - - - - - - - 60,000 Investment income 324,120 - 26,000 15,000 7,000 14,000 - 27,000 - 413,120 Other revenue 25,000 31,000 - - - - 10,000 - - 66,000 Transfers and contributions - - - - 300,000 - 250,000 - 100,000 650,000 TOTAL REVENUES AND TRANSFERS IN 27,946,315 14,107,681 1,066,875 4,059,256 2,863,942 486,169 762,934 1,429,819 929,031 53,652,022 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 354,691 - - - - - - - - 354,691 Public works 19,256,716 - - - - - - - - 19,256,716 Engineering 517,811 - - - - - - - - 517,811 Fire 1,611,133 - - - - - - - - 1,611,133 Parks and recreation - 12,803,915 1,148,810 3,975,089 3,241,415 938,447 847,772 1,776,012 1,281,458 26,012,918 Transfers and contributions 100,000 850,000 - - - - - - - 950,000 TOTAL EXPENSES AND TRANSFERS OUT 21,840,351 13,653,915 1,148,810 3,975,089 3,241,415 938,447 847,772 1,776,012 1,281,458 48,703,269 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 9,833,185 49,474 129,706 114,591 - 500 81,618 9,795 10,218,869 Personal services 3,043,658 1,855,852 464,478 1,671,452 1,086,231 173,828 579,389 874,981 739,518 10,489,387 Contractual services 9,647,622 650,603 217,768 465,450 983,521 190,900 109,545 384,380 200,888 12,850,677 Commodities 1,177,100 55,050 77,100 274,000 106,112 22,000 76,500 144,700 126,200 2,058,762 Internal services 1,387,235 312,725 44,281 242,329 212,718 35,719 75,838 144,833 113,057 2,568,735 Depreciation 5,696,000 96,500 284,500 965,000 665,000 516,000 6,000 145,500 92,000 8,466,500 Interest 788,736 - 11,209 227,152 73,242 - - - - 1,100,339 Transfers and contributions 100,000 850,000 - - - - - - - 950,000 TOTAL EXPENSES AND TRANSFERS OUT 21,840,351 13,653,915 1,148,810 3,975,089 3,241,415 938,447 847,772 1,776,012 1,281,458 48,703,269 CHANGE IN NET POSITION 6,105,964$ 453,766$ (81,935)$ 84,167$ (377,473)$ (452,278)$ (84,838)$ (346,193)$ (352,427)$ 4,948,753$ 2021 PROPRIETARY FUND BUDGETS 193 CITY OF EDINA, MINNESOTA GOVERNMENTAL FUNDS 2022 Budget by Fund Braemar Debt General HRA PACS CAS CDBG Police SR Memorial Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 36,708,036$ 237,300$ -$ -$ -$ -$ -$ 3,232,000$ 5,190,000$ 45,367,336$ Tax increments - 1,670,245 - - - - - - - 1,670,245 Franchise fees & other taxes 830,000 - 1,200,000 1,000,000 - - - - 90,000 3,120,000 Special assessments - - - - - - - - 4,624,553 4,624,553 Licenses and permits 5,391,060 - - - - - - - 73,500 5,464,560 Intergovernmental 1,888,750 - - - 135,000 - - - 3,916,559 5,940,309 Charges for services 5,737,905 - - - - - - - 195,000 5,932,905 Fines and forfeitures 650,000 - - - - - - - - 650,000 Investment income 250,000 186,000 - 15,000 - - 1,000 - 203,000 655,000 Other revenue 376,000 - - - - 289,122 2,500 - - 667,622 Transfers and contributions 150,000 - - - - - - 2,979,563 100,000 3,229,563 Debt issued - - - - - - - - 1,768,370 1,768,370 Other financing sources 250,000 - - - - - - - - 250,000 TOTAL REVENUES AND OTHER FINANCING SOURCES 52,231,751 2,093,545 1,200,000 1,015,000 135,000 289,122 3,500 6,211,563 16,160,982 79,340,463 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,026,833 - - - - - - - 66,000 3,092,833 Communications 1,524,674 - - - - - - - 305,000 1,829,674 Information technology - - - - - - - - 50,000 50,000 Human resources 1,462,010 - - - - - - - - 1,462,010 Finance 1,297,658 - - - - - - - - 1,297,658 Public works 6,005,413 - - - - - - - 535,000 6,540,413 Engineering 3,616,299 - 1,251,894 752,185 - - - - 8,850,570 14,470,948 Police 14,175,815 - - - - 264,500 - - 446,550 14,886,865 Fire 12,392,083 - - - - - - - 255,000 12,647,083 Parks & recreation 6,631,321 - - - - - 1,000 - 978,000 7,610,321 Community development 2,099,645 4,704,786 - - 135,000 - - - 75,000 7,014,431 Debt service - 133,967 - - - - - 5,870,201 - 6,004,168 Transfers - - - - - - - - 2,979,563 2,979,563 TOTAL EXPENDITURES AND OTHER FINANCING USES 52,231,751 4,838,753 1,251,894 752,185 135,000 264,500 1,000 5,870,201 14,540,683 79,885,967 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 36,366,347 197,566 124,371 145,820 - - - - 108,575 36,942,679 Contractual services 8,378,854 4,504,220 75,720 96,020 135,000 257,000 1,000 - 340,071 13,787,885 Commodities 2,478,344 3,000 13,000 1,200 - 7,500 - - 56,675 2,559,719 Internal services 5,008,206 - 8,803 9,145 - - - - 864 5,027,018 Equipment - - - - - - - - 1,728,550 1,728,550 Capital outlay - - 1,030,000 500,000 - - - - 9,326,385 10,856,385 Debt service - 133,967 - - - - - 5,870,201 - 6,004,168 Transfers - - - - - - - - 2,979,563 2,979,563 TOTAL EXPENDITURES AND OTHER FINANCING USES 52,231,751 4,838,753 1,251,894 752,185 135,000 264,500 1,000 5,870,201 14,540,683 79,885,967 CHANGE IN FUND BALANCE -$ (2,745,208)$ (51,894)$ 262,815$ -$ 24,622$ 2,500$ 341,362$ 1,620,299$ (545,504)$ 2022 GOVERNMENTAL FUND BUDGETS 194 CITY OF EDINA, MINNESOTA 2022 BUDGET BY FUND PROPRIETARY FUNDS - ENTERPRISE Aquatic Golf Braemar Art Utilities Liquor Center Course Arena Field Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 27,605,752$ 15,112,595$ 1,059,070$ 4,511,500$ 2,632,739$ 510,000$ 502,483$ 1,388,904$ 816,000$ 54,139,043$ Intergovernmental 180,000 - - - - - - - - 180,000 Investment income 302,000 21,000 20,000 9,000 3,000 11,000 - 11,000 4,000 381,000 Other revenue 20,000 - - - - - - - - 20,000 Transfers and contributions - 3,500 15,000 50,550 340,000 950 350,000 11,000 420,000 1,191,000 TOTAL REVENUES AND TRANSFERS IN 28,107,752 15,137,095 1,094,070 4,571,050 2,975,739 521,950 852,483 1,410,904 1,240,000 55,911,043 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 409,281 - - - - - - - - 409,281 Public works 19,605,891 - - - - - - - - 19,605,891 Engineering 1,362,510 - - - - - - - - 1,362,510 Fire 1,738,117 - - - - - - - - 1,738,117 Parks and recreation - 14,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 28,535,275 Transfers and contributions 441,000 1,000,000 - - - - - - - 1,441,000 TOTAL EXPENSES AND TRANSFERS OUT 23,556,799 15,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 53,092,074 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 10,582,911 51,750 191,000 111,000 - 500 78,000 12,000 11,027,161 Personal services 2,996,962 2,373,276 518,515 1,960,542 1,204,319 145,293 582,296 910,139 783,736 11,475,078 Contractual services 10,828,317 680,474 190,509 671,500 1,062,622 202,070 114,819 371,476 277,318 14,399,105 Commodities 1,190,500 76,300 132,600 390,000 134,250 23,250 76,500 171,750 143,500 2,338,650 Internal services 1,573,672 397,369 41,819 322,661 236,115 37,569 62,457 149,155 128,113 2,948,930 Depreciation 6,127,000 117,000 290,000 899,000 660,000 514,000 6,000 140,000 37,000 8,790,000 Interest 399,348 - 7,439 201,254 64,109 - - - - 672,150 Transfers and contributions 441,000 1,000,000 - - - - - - - 1,441,000 TOTAL EXPENSES AND TRANSFERS OUT 23,556,799 15,227,330 1,232,632 4,635,957 3,472,415 922,182 842,572 1,820,520 1,381,667 53,092,074 CHANGE IN NET POSITION 4,550,953$ (90,235)$ (138,562)$ (64,907)$ (496,676)$ (400,232)$ 9,911$ (409,616)$ (141,667)$ 2,818,969$ 2022 ENTERPRISE FUND BUDGETS 195 CITY OF EDINA, MINNESOTA 2022 BUDGET BY FUND PROPRIETARY FUNDS - INTERNAL SERVICE Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 1,101,912$ 2,005,452$ 2,349,507$ 1,383,480$ 6,840,351$ TOTAL REVENUES AND TRANSFERS IN 1,101,912 2,005,452 2,349,507 1,383,480 6,840,351 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Information technology - - 2,303,438 - 2,303,438 Human resources 1,101,903 - - - 1,101,903 Public works - 1,966,101 - - 1,966,101 Engineering - - - 1,356,361 1,356,361 TOTAL EXPENSES AND TRANSFERS OUT 1,101,903 1,966,101 2,303,438 1,356,361 6,727,803 EXPENSES AND TRANSFERS OUT - BY TYPE Personal services 157,103 768,681 1,262,038 551,641 2,739,463 Contractual services 944,800 197,020 871,400 607,220 2,620,440 Commodities - 1,000,400 170,000 197,500 1,367,900 TOTAL EXPENSES AND TRANSFERS OUT 1,101,903 1,966,101 2,303,438 1,356,361 6,727,803 CHANGE IN NET POSITION 9$ 39,351$ 46,069$ 27,119$ 112,548$ 2022 INTERNAL SERVICE FUND BUDGETS 196 CITY OF EDINA, MINNESOTA GOVERNMENTAL FUNDS 2023 Budget by Fund Braemar Debt General HRA PACS CAS CDBG Police SR Memorial Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property tax levy 38,947,298$ 244,400$ -$ -$ -$ -$ -$ 3,230,000$ 5,560,400$ 47,982,098$ Tax increments - 1,723,245 - - - - - - - 1,723,245 Franchise fees & other taxes 830,000 - 1,200,000 1,000,000 - - - - 90,000 3,120,000 Special assessments - - - - - - - - 3,726,253 3,726,253 Licenses and permits 5,466,160 - - - - - - - 74,000 5,540,160 Intergovernmental 1,605,100 - - - 135,000 - - - 2,780,000 4,520,100 Charges for services 5,945,291 - - - - - - - 195,000 6,140,291 Fines and forfeitures 650,000 - - - - - - - - 650,000 Investment income 250,000 186,000 - 15,000 - - 1,000 - 203,000 655,000 Other revenue 376,000 - - - - 289,122 2,500 - - 667,622 Transfers and contributions 157,500 - - - - - - 2,816,752 100,000 3,074,252 Debt issued - - - - - - - - 2,813,402 2,813,402 Other financing sources - - - - - - - - - - TOTAL REVENUES AND OTHER FINANCING SOURCES 54,227,349 2,153,645 1,200,000 1,015,000 135,000 289,122 3,500 6,046,752 15,542,055 80,612,423 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,084,731 - - - - - - - 66,000 3,150,731 Communications 1,593,364 - - - - - - - 113,000 1,706,364 Information technology - - - - - - - - 30,000 30,000 Human resources 1,523,510 - - - - - - - - 1,523,510 Finance 1,340,388 - - - - - - - - 1,340,388 Public works 6,148,108 - - - - - - - 560,790 6,708,898 Engineering 3,826,591 - 1,257,188 732,345 - - - - 9,842,506 15,658,630 Police 14,815,549 - - - - 137,000 - - 809,550 15,762,099 Fire 12,896,827 - - - - - - - 322,000 13,218,827 Parks & recreation 6,829,543 - - - - - 1,000 - 641,325 7,471,868 Community development 2,168,738 2,405,402 - - 135,000 - - - - 4,709,140 Debt service - 472,250 - - - - - 6,013,727 - 6,485,977 Transfers - - - - - - - - 2,816,752 2,816,752 TOTAL EXPENDITURES AND OTHER FINANCING USES 54,227,349 2,877,652 1,257,188 732,345 135,000 137,000 1,000 6,013,727 15,201,923 80,583,184 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personal services 37,867,139 204,932 129,399 155,688 - - - - 116,379 38,473,537 Contractual services 8,704,256 2,197,470 75,720 66,020 135,000 129,500 1,000 - 350,273 11,659,239 Commodities 2,529,570 3,000 13,000 1,200 - 7,500 - - 58,375 2,612,645 Internal services 5,126,384 - 9,069 9,437 - - - - 876 5,145,766 Equipment - - - - - - - - 1,936,665 1,936,665 Capital outlay - - 1,030,000 500,000 - - - - 9,922,603 11,452,603 Debt service - 472,250 - - - - - 6,013,727 - 6,485,977 Transfers - - - - - - - - 2,816,752 2,816,752 TOTAL EXPENDITURES AND OTHER FINANCING USES 54,227,349 2,877,652 1,257,188 732,345 135,000 137,000 1,000 6,013,727 15,201,923 80,583,184 CHANGE IN FUND BALANCE -$ (724,007)$ (57,188)$ 282,655$ -$ 152,122$ 2,500$ 33,025$ 340,132$ 29,239$ 2023 GOVERNMENTAL FUND BUDGETS 197 CITY OF EDINA, MINNESOTA 2023 BUDGET BY FUND PROPRIETARY FUNDS - ENTERPRISE Aquatic Golf Braemar Art Utilities Liquor Center Course Arena Field Center Edinborough Centennial Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 28,979,624$ 15,665,239$ 1,089,070$ 4,562,500$ 2,642,739 560,000$ 502,483$ 1,388,904$ 833,000$ 56,223,559$ Intergovernmental 180,000 - - - - - - - - 180,000 Investment income 302,000 21,000 20,000 9,000 3,000 11,000 - 11,000 4,000 381,000 Other revenue 20,000 - - - - - - - - 20,000 Transfers and contributions - 3,750 16,000 53,600 392,000 1,000 300,000 12,000 425,000 1,203,350 TOTAL REVENUES AND TRANSFERS IN 29,481,624 15,689,989 1,125,070 4,625,100 3,037,739 572,000 802,483 1,411,904 1,262,000 58,007,909 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 411,968 - - - - - - - - 411,968 Public works 20,341,298 - - - - - - - - 20,341,298 Engineering 1,295,519 - - - - - - - - 1,295,519 Fire 1,769,272 - - - - - - - - 1,769,272 Parks and recreation - 14,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 29,262,244 Transfers and contributions 460,850 1,000,000 - - - - - - - 1,460,850 TOTAL EXPENSES AND TRANSFERS OUT 24,278,907 15,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 54,541,151 EXPENSES AND TRANSFERS OUT - BY TYPE COGS - 10,970,141 52,250 191,000 111,000 - 500 78,000 12,000 11,414,891 Personal services 3,113,700 2,490,550 532,559 2,047,206 1,248,641 150,689 601,125 947,015 817,701 11,949,186 Contractual services 11,089,188 681,984 190,234 673,050 1,007,222 211,070 115,819 387,676 283,368 14,639,611 Commodities 1,200,700 70,600 114,700 391,000 140,750 25,250 79,000 149,900 148,950 2,320,850 Internal services 1,624,720 408,284 43,183 334,130 244,365 38,779 64,684 154,460 132,581 3,045,186 Depreciation 6,307,000 117,000 290,000 904,000 665,000 514,000 6,000 145,000 37,000 8,985,000 Interest 482,749 - 4,775 179,617 58,436 - - - - 725,577 Transfers and contributions 460,850 1,000,000 - - - - - - - 1,460,850 TOTAL EXPENSES AND TRANSFERS OUT 24,278,907 15,738,559 1,227,701 4,720,003 3,475,414 939,788 867,128 1,862,051 1,431,600 54,541,151 CHANGE IN NET POSITION 5,202,717$ (48,570)$ (102,631)$ (94,903)$ (437,675) (367,788)$ (64,645)$ (450,147)$ (169,600)$ 3,466,758$ 2023 ENTERPRISE FUND BUDGETS 198 CITY OF EDINA, MINNESOTA 2023 BUDGET BY FUND PROPRIETARY FUNDS - INTERNAL SERVICE 2022 Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operating revenues 1,107,240$ 2,055,684$ 2,421,160$ 1,407,108$ 6,991,192$ 6,840,351$ TOTAL REVENUES AND TRANSFERS IN 1,107,240 2,055,684 2,421,160 1,407,108 6,991,192 6,840,351 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Information technology - - 2,373,686 - 2,373,686 2,303,438 Human resources 1,107,234 - - - 1,107,234 1,101,903 Public works - 2,015,368 - - 2,015,368 1,966,101 Engineering - - - 1,379,522 1,379,522 1,356,361 TOTAL EXPENSES AND TRANSFERS OUT 1,107,234 2,015,368 2,373,686 1,379,522 6,875,810 6,727,803 EXPENSES AND TRANSFERS OUT - BY TYPE Personal services 162,434 797,148 1,328,386 573,802 2,861,770 2,739,463 Contractual services 944,800 205,120 870,300 608,220 2,628,440 2,620,440 Commodities - 1,013,100 175,000 197,500 1,385,600 1,367,900 TOTAL EXPENSES AND TRANSFERS OUT 1,107,234 2,015,368 2,373,686 1,379,522 6,875,810 6,727,803 CHANGE IN NET POSITION 6$ 40,316$ 47,474$ 27,586$ 115,382$ 112,548$ 2023 INTERNAL SERVICE FUND BUDGETS 199 CITY OF EDINA, MINNESOTA Fund balance refers to the difference between assets and liabilities for governmental funds. Since all related assets and liabilities are not reported for governmental funds, fund balance is considered more of a liquidity measure than a net worth measure. Credit rating agencies monitor fund balance levels and consider fund balance when determining the City’s creditworthiness. GASB 54 defines five different classifications that the City may use to disclose constraints for how these amounts can be spent. These classifications are as follows:  Nonspendable – Amounts that cannot be spent, such as prepaid items, inventory, and other long-term assets.  Restricted – Amounts subject to externally imposed constraints established by creditors, grantors, contributors, or law.  Committed – Constrained by formal internal action, such as City Council resolution.  Assigned – Internally imposed constraints that do not meet the definition of Restricted or Committed.  Unassigned – Available to spend. The schedule on the next page shows fund balance and net position trends for all of the City’s funds. The first year of balances and activity shown represent actual amounts from the most recently completed annual audit. The second year of balances and activity shown are projections compiled by City staff for the uncompleted balance of the current fiscal year (the year this budget was written). The third and fourth years of balances and activity shown are continued projections based on the annual revenue and expenditure/expense budgets contained in this document. Projected Changes in Fund Balance — All Funds Minnesota Task Force 1 Structural Collapse Rescue Team 200 CITY OF EDINA, MINNESOTA PROJECTED CHANGES IN FUND BALANCE—ALL FUNDS FUND BALANCE—GOVERNMENTAL FUNDS Year Fund Balance January 1 Revenues and other financing sources Expenditures and other financing uses Fund Balance December 31 $ Increase/ (Decrease) % Increase/ (Decrease)Reason for Increase/(Decrease) > 10% General Fund 2020 18,591,661 54,701,579 46,050,127 27,243,113 8,651,452 46.5%Unanticipated intergovernmental revenue received 2021 27,243,113 48,885,968 48,885,968 27,243,113 - 0.0% 2022 27,243,113 52,231,751 52,231,751 27,243,113 - 0.0% 2023 27,243,113 54,227,349 54,227,349 27,243,113 - 0.0% Housing and 2020 16,223,598 9,988,692 2,027,076 24,185,214 7,961,616 49.1%Unanticipated revenue received Redevelopment 2021 24,185,214 8,437,158 6,265,853 26,356,519 2,171,305 9.0% Authority (HRA)2022 26,356,519 2,093,545 4,838,753 23,611,311 (2,745,208) (10.4%)Projects detailed in 2021-2026 CIP 2023 23,611,311 2,153,645 2,877,652 22,887,304 (724,007) (3.1%) Pedestrian and Cyclist 2020 492,057 1,229,269 1,771,936 (50,610) (542,667) (110.3%)Planned spending on capital projects Safety (PACS)2021 (50,610) 1,201,060 1,142,287 8,163 58,773 0.0% 2022 8,163 1,200,000 1,251,894 (43,731) (51,894) (635.7%)Projects detailed in 2021-2026 CIP 2023 (43,731) 1,200,000 1,257,188 (100,919) (57,188) 0.0% Conservation and 2020 1,053,089 989,918 249,620 1,793,387 740,298 70.3%Building fund balance for future projects Sustainability (CAS)2021 1,793,387 1,012,190 896,453 1,909,124 115,737 6.5% 2022 1,909,124 1,015,000 752,185 2,171,939 262,815 13.8%Projects detailed in 2021-2026 CIP 2023 2,171,939 1,015,000 732,345 2,454,594 282,655 13.0%Projects detailed in 2021-2026 CIP Community 2020 - 20,470 20,470 - - 0.0% Development 2021 - 125,000 125,000 - - 0.0% Block Grant (CDBG)2022 - 135,000 135,000 - - 0.0% 2023 - 135,000 135,000 - - 0.0% Police Special 2020 713,658 174,329 200,048 687,939 (25,719) (3.6%) Revenue 2021 687,939 172,066 147,882 712,123 24,184 3.5% 2022 712,123 289,122 264,500 736,745 24,622 3.5% 2023 736,745 289,122 137,000 888,867 152,122 20.6% Braemar Memorial 2020 123,682 4,040 1,030 126,692 3,010 2.4% 2021 126,692 4,507 - 131,199 4,507 3.6% 2022 131,199 3,500 1,000 133,699 2,500 1.9% 2023 133,699 3,500 1,000 136,199 2,500 1.9% Arts & Culture 2020 46,945 24,238 2,288 68,895 21,950 46.8%Building fund balance for cash flow purposes 2021 68,895 22,985 91,880 - (68,895) (100.0%)Moving to General Fund at year-end 2022 - - - - - 0.0% 2023 - - - - - 0.0% Debt Service 2020 8,341,996 9,258,040 7,872,730 9,727,306 1,385,310 16.6%Refunding bonds sold in 2020 for 2021 call 2021 9,727,306 6,614,844 7,287,877 9,054,273 (673,033) (6.9%) 2022 9,054,273 6,211,563 5,870,201 9,395,635 341,362 3.8% 2023 9,395,635 6,046,752 6,013,727 9,428,661 33,025 0.4% Construction 2020 21,927,249 14,567,898 16,860,402 19,634,745 (2,292,504) (10.5%)Planned spending on capital projects 2021 19,634,745 13,364,609 11,030,134 21,969,220 2,334,475 11.9%Assessments collections from prior year projects 2022 21,969,220 16,160,982 14,540,683 23,589,519 1,620,299 7.4% 2023 23,589,519 15,542,055 15,201,923 23,929,651 340,132 1.4% Fund 201 CITY OF EDINA, MINNESOTA PROJECTED CHANGES IN FUND BALANCE—ALL FUNDS NET POSITION—PROPRIETARY FUNDS Net position refers to the difference between assets and liabilities for proprietary funds. Since proprietary funds report more assets and liabilities than governmental funds, net position is a more accurate measure of net worth. Credit rating agencies also consider fund net position when determining the City’s creditworthiness. Net position is displayed in three classifications:  Net investment in capital assets – Capital assets less accumulated depreciation and debt, which cannot be spent because the asset is not liquid.  Restricted – Amounts subject to externally imposed constraints established by creditors, grantors, contributors, or law.  Unrestricted – Available to spend or allocate. 202 CITY OF EDINA, MINNESOTA PROJECTED CHANGES IN FUND BALANCE—ALL FUNDS NET POSITION—PROPRIETARY FUNDS Year Net Position January 1 Revenues and other financing sources Expenses and other financing uses Net Position December 31 $ Increase/ (Decrease) % Increase/ (Decrease)Reason for Increase/(Decrease) > 10% Utilities 2020 90,189,396 26,872,928 22,538,341 94,523,983 4,334,587 4.8% 2021 94,523,983 27,946,315 21,840,351 100,629,947 6,105,964 6.5% 2022 100,629,947 28,107,752 23,556,799 105,180,900 4,550,953 4.5% 2023 105,180,900 29,481,624 24,278,907 110,383,617 5,202,717 4.9% Liquor 2020 3,467,497 12,179,820 12,122,017 3,525,300 57,803 1.7% 2021 3,525,300 14,107,681 13,653,915 3,979,066 453,766 12.9%Profitable operations 2022 3,979,066 15,137,095 15,227,330 3,888,831 (90,235) (2.3%) 2023 3,888,831 15,689,989 15,738,559 3,840,261 (48,570) (1.2%) Aquatic Center 2020 3,233,195 205,479 389,011 3,049,663 (183,532) (5.7%) 2021 3,049,663 1,066,875 1,148,810 2,967,728 (81,935) (2.7%) 2022 2,967,728 1,094,070 1,232,632 2,829,166 (138,562) (4.7%) 2023 2,829,166 1,125,070 1,227,701 2,726,535 (102,631) (3.6%) Golf Course 2020 1,575,196 4,048,579 4,270,317 1,353,458 (221,738) (14.1%)Closed periodically due to Coronavirus 2021 1,353,458 4,059,256 3,975,089 1,437,625 84,167 6.2% 2022 1,437,625 4,571,050 4,635,957 1,372,718 (64,907) (4.5%) 2023 1,372,718 4,625,100 4,720,003 1,277,815 (94,903) (6.9%). Arena 2020 4,719,423 1,985,641 2,886,405 3,818,659 (900,764) (19.1%)Closed periodically due to Coronavirus 2021 3,818,659 2,863,942 3,241,415 3,441,186 (377,473) (9.9%) 2022 3,441,186 2,975,739 3,472,415 2,944,510 (496,676) (14.4%)Increased cost of operations 2023 2,944,510 3,037,739 3,475,414 2,506,835 (437,675) (14.9%)Increased cost of operations Braemar Field 2020 7,734,745 382,889 726,741 7,390,893 (343,852) (4.4%) 2021 7,390,893 486,169 938,447 6,938,615 (452,278) (6.1%) 2022 6,938,615 521,950 922,182 6,538,383 (400,232) (5.8%) 2023 6,538,383 572,000 939,788 6,170,595 (367,788) (5.6%) Art Center 2020 (100,798) 181,249 335,526 (255,075) (154,277) 0.0% 2021 (255,075) 762,934 847,772 (339,913) (84,838) 0.0% 2022 (339,913) 852,483 842,572 (330,002) 9,911 0.0% 2023 (330,002) 802,483 867,128 (394,647) (64,645) 0.0% Edinborough Park 2020 2,463,265 567,282 1,280,583 1,749,964 (713,301) (29.0%)Closed periodically due to Coronavirus 2021 1,749,964 1,429,819 1,776,012 1,403,771 (346,193) (19.8%)Planned use of unrestricted investments 2022 1,403,771 1,410,904 1,820,520 994,155 (409,616) (29.2%)Planned use of unrestricted investments 2023 994,155 1,411,904 1,862,051 544,008 (450,147) (45.3%)Planned use of unrestricted investments Centennial Lakes 2020 576,171 716,982 1,089,371 203,782 (372,389) (64.6%)Closed periodically due to Coronavirus 2021 203,782 929,031 1,281,458 (148,645) (352,427) (172.9%)Planned use of unrestricted investments 2022 (148,645) 1,240,000 1,381,667 (290,312) (141,667) 0.0% 2023 (290,312) 1,262,000 1,431,600 (459,912) (169,600) 0.0% Risk Management 2020 2,038,397 1,071,287 699,570 2,410,114 371,717 18.2%Unanticipated revenue received 2021 2,410,114 1,096,188 1,096,173 2,410,129 15 0.0% 2022 2,410,129 1,101,912 1,101,903 2,410,138 9 0.0% 2023 2,410,138 1,107,240 1,107,234 2,410,144 6 0.0% Equipment Operations 2020 - 1,912,159 1,808,929 103,230 103,230 0.0%Fund established in 2020 2021 103,230 1,958,868 1,911,066 151,032 47,802 46.3%Building fund balance for budget overages 2022 151,032 2,005,452 1,966,101 190,383 39,351 26.1%Building fund balance for budget overages 2023 190,383 2,055,684 2,015,368 230,699 40,316 21.2%Building fund balance for budget overages Information Technology 2020 - 1,638,300 1,493,369 144,931 144,931 0.0%Fund established in 2020 2021 144,931 1,819,860 1,777,106 187,685 42,754 29.5%Building fund balance for budget overages 2022 187,685 2,349,507 2,303,438 233,754 46,069 24.5%Building fund balance for budget overages 2023 233,754 2,421,160 2,373,686 281,228 47,474 20.3%Building fund balance for budget overages Facilities Management 2020 - 1,191,564 1,135,616 55,948 55,948 0.0%Fund established in 2020 2021 55,948 1,358,232 1,325,127 89,053 33,105 59.2%Building fund balance for budget overages 2022 89,053 1,383,480 1,356,361 116,172 27,119 30.5%Building fund balance for budget overages 2023 116,172 1,407,108 1,379,522 143,758 27,586 23.7%Building fund balance for budget overages Fund Strong Foundation | Livable City | Reliable Service | Better Together APPENDIX 204 CITY OF EDINA, MINNESOTA FUND DEFINITIONS GOVERNMENTAL FUNDS In general, governmental funds are used to account for traditional government services like Police, Fire, Public Works, and Parks and Recreation. These activities are often, but not always, supported by a mix of taxes and user fees. The City budgets and reports its governmental funds using the modified accrual basis of accounting, which is required by GAAP. Currently the City has 10 governmental funds:  General Fund. This is the City’s primary operating fund. It records most of the City’s revenues and expenditures from core City operations like Administration, Police, Fire, Parks and Recreation, etc. Any activities that are not specifically reported in a different fund can be found in the General Fund. The General Fund is not used for debt service or capital projects.  Housing and Redevelopment Authority Fund (HRA). The HRA is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported in a special revenue fund as if it were part of the City’s operations. This is done because the members of the City Council serve as HRA commissioners and its activity is confined to the same geographic borders as the City of Edina.  Community Development Block Grant Fund (CDBG). This special revenue fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974.  Police Special Revenue Fund. This special revenue fund was established to account for funds received for specific purposes within the Police Department, including E-911 and forfeiture funds.  Braemar Memorial Fund. This account was created in 1976 and formally recognized as a separate special revenue fund by the City Council in 2010. It is used to account for funds donated to the City for the purpose of enhancing Braemar Golf Course with equipment and amenities that might not otherwise be affordable or viewed as a necessity to the golf course.  Arts and Culture Fund. This special revenue fund was established in 2014 to account for funds donated to the City for the purpose of enhancing public arts and culture related activities. It has been moved into the General Fund in 2021.  Pedestrian and Cyclist Safety Fund (PACS). This special revenue fund was established in 2013 to account for funds received from gas and electric franchise fees, which the City Council intends to use for pedestrian and cyclist improvements included in future street reconstruction projects.  Conservation and Sustainability Fund (CAS). This special revenue fund was established in 2015 to account for funds received from gas and electric franchise fees beginning in 2016. The City will use these funds to provide a dedicated funding source for new conservation and sustainability functionality and programs.  Debt Service Fund. This fund accounts for the payment of principal and interest on the City’s governmental debt.  Construction Fund. This fund accounts for the various special assessment and state aid projects throughout the City. This fund also provides financing for the City’s Capital Improvement Plan (CIP) and the Equipment Replacement Program. 205 CITY OF EDINA, MINNESOTA PROPRIETARY FUNDS In general, proprietary funds are used to account for activities that the City intends to be mostly self-supporting. The costs of providing these activities are often, but not always, recovered primarily through user charges, similar to private businesses. Some of the activities we categorize as proprietary funds receive regular support from other City funds. The City budgets and reports our proprietary funds using the full accrual basis of accounting, which is required by GAAP. Currently the City has thirteen proprietary funds:  Utility Fund. This fund is used to account for water pumping, treatment and distribution as well as sanitary sewer collection and disposal, storm water collection and recycling services to the City’s residents.  Liquor Fund. This fund accounts for the City’s off-sale liquor business, which Edina first started around 1948. Today, there are three municipally owned liquor stores in Edina. Profits are generally transferred into other City funds.  Aquatic Center Fund. This fund was established to account for the operations of the City’s outdoor municipal pool.  Golf Course Fund. This fund was established to account for the City’s golf business when the 18-hole Braemar Golf Couse opened in 1964. Today, the City operates Braemar Golf Course (a newly constructed 18-hole championship course), a new 9-hole executive course and driving range, an indoor golf dome, and banquet room.  Arena Fund. This fund was created around 1966 when Braemar Arena was built. Today, there are three indoor, regulation size ice sheets, including the original “West” arena.  Braemar Field Fund. This fund was created in 2013 to account for the revenues and expenses for Braemar Field which was built in 2014.  Art Center Fund. This fund accounts for the revenues and expenses for the Edina Art Center.  Edinborough Park Fund. Edinborough Park’s finances were combined with Centennial Lakes Park in one fund through 2011. A separate fund for each facility was created in budget year 2012.  Centennial Lakes Park Fund. Centennial Lakes Park’s finances were combined with Edinborough Park in one fund through 2011. A separate fund for each facility was created in budget year 2012.  Risk Management Fund. This internal service fund was established to account for expenses related to the costs of insurance, safety and prevention measures, and risk management programs across all departments.  Equipment Operations Fund. This internal service fund was established to account for expenses related to the costs of maintaining and updating vehicles and equipment across all departments.  Information Technology Fund. This internal service fund was established to account for expenses related to the costs of information technology equipment and services across all departments.  Facilities Management Fund. This internal service fund was established to account for expenses related to the costs of maintaining and updating facilities across all departments. FUND DEFINITIONS 206 CITY OF EDINA, MINNESOTA F INANCIAL MANAGEMENT POLICIES PURPOSE The City of Edina has a responsibility to provide quality services to its residents, and considers it important to do so in a fiscally responsible fashion designed to keep services and taxes as consistent as possible over time. These financial management policies are meant to serve as the framework upon which consistent operations may be built and sustained. OPERATING BUDGET POLICIES Scope. It is the City’s policy to budget for all governmental and enterprise funds. Accounting. The governmental funds use the modified accrual basis of accounting for budgeting and reporting purposes. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities for the current period. The City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. The Enterprise Funds use the accrual basis of accounting for budgeting and reporting purposes. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Stakeholder Input. The annual budget process is intended to weigh all competing requests for City resources within expected fiscal constraints. Requests for new programs made outside the annual budget process are discouraged. The City will provide ample time and opportunity for public input into its budget process every year. Balanced Budget Adoption. The operating budget for the General Fund will be balanced. The City will not use internal or external short-term borrowing, asset sales, or one-time accounting changes to balance the General Fund budget. The balanced budget will include a reasonable annual appropriation for contingencies. Budgetary Controls. The legal level of budgetary control is at the department level within the General Fund even though budgetary data is presented at lower levels (personal services, contractual services, commodities, and central services). Expenditures may not legally exceed appropriations by department unless offset by increases in revenues. All unencumbered appropriations lapse at year-end. The City Manager may approve budgetary transfers. The City Council may approve supplemental appropriations. 207 CITY OF EDINA, MINNESOTA FINANCIAL MANAGEMENT POLICIES Monitoring. Department Directors are responsible for administration of their respective department budgets. Such responsibility includes reviewing monthly financial reports to detect errors and assess progress, staying within budget authorization, and submitting requests for budget adjustments, when required. REVENUE POLICIES Policies. The City will endeavor to maintain a diversified and stable revenue system to shelter programs and services from short-term fluctuations in any single revenue source. Property Taxes. It is beneficial for residents and for the City to keep tax rates low and consistent from year to year. The City will strive to proactively avoid large increases in the operating budget levy. Fees and Charges. The City shall establish user charges and fees for General Fund program activities at a level related to the full cost of providing the services. Components of the user charges shall include direct and indirect costs of providing the service. The City will also consider policy objectives and market rates when setting fees. Transfers. Transfers should not be used as a revenue source to balance the operating budget except for the annual transfer from our liquor operations. Investment Income. The City will reasonably budget for investment revenue in our operating budget based on the conservative investment strategy outlined in our investment policy (under separate cover). FUND BALANCE POLICIES Definitions. The term fund balance describes the net assets of the City’s governmental funds calculated in accordance with generally accepted accounting principles (GAAP). GAAP further divides fund balance into five categories; nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance.  Nonspendable fund balance consists of amounts that cannot be spent because they are not in spendable form, such as prepaid items.  Restricted fund balance consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions.  Committed fund balance consists of amounts that are constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts.  Assigned fund balance consists of amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the general fund, assigned amounts represent intended uses established by the City Council.  Unassigned fund balance is the residual classification for the general fund and also reflects negative residual amounts in other funds. 208 CITY OF EDINA, MINNESOTA FINANCIAL MANAGEMENT POLICIES Policies. At the end of each fiscal year, the City will maintain nonspendable and restricted fund balance equal to the amounts required by GAAP for a variety of purposes, including but not limited to: prepaid expenditures, park dedication fees, E-911 funds, forfeiture funds, and other assets restricted by grantors, contributors, creditors, or enabling legislation. At the end of each fiscal year, the City will maintain committed fund balance constrained for specific purposes by City Council. At the end of each fiscal year, the City will maintain assigned fund balance in the General Fund for investments as calculated by the difference between market value and amortized value of investments held by the City at year-end. The City will also maintain assigned fund balance in the General Fund for Compensated Absences of 40% of the actual full-accrual General Fund liability for compensated absences. At the end of each fiscal year, the City’s goal is to maintain unassigned fund balance for Cash Flow in the General Fund in a range equal to 42-47% of the subsequent year’s budgeted tax revenue. In the event that unassigned fund balance falls above or below the desired range, the Finance Director shall report such amounts to the City Council as soon as practicable after the end of the fiscal year. Should the actual amount of unassigned fund balance fall below the desired range, the City shall create a plan to restore the appropriate levels. Should the actual amount of unassigned fund balance fall above the desired range, any excess funds will remain unassigned pending the Council’s final decision concerning transfer to another fund. It is the policy of the City that, to the extent possible, such excess funds will be transferred to the Construction Fund to support capital improvements and equipment. Available fund balances shall not be used for ongoing operating expenditures. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. CAPITAL OUTLAY POLICIES Equipment Replacement Program. The City strives to maintain its physical assets at a level that minimizes future repair and maintenance costs. To accomplish this goal, the City has established the Equipment Replacement Program to annually budget and set aside funds for the timely replacement of City equipment. The City’s Equipment Replacement Program includes equipment used for General Fund programs. Capital Improvement Plan (CIP). The goal of the City’s CIP is to develop a comprehensive program for use by decision makers to guide capital investments based on an assessment of the community’s needs, taking into account the best use of limited resources while providing efficient and effective municipal services. 209 CITY OF EDINA, MINNESOTA FINANCIAL MANAGEMENT POLICIES The City will develop a six-year plan for capital improvements and update it annually. The CIP process includes analyzing projects contributing to the public health and welfare, projects helping to maintain and improve the efficiency of the existing systems, and projects that define a future need within the community. The City will identify the estimated cost and potential funding sources for each capital project proposal in the CIP. Purchase contracts for equipment and projects included in the CIP must still be properly authorized according to the City’s Purchasing Policy. The CIP will include equipment and projects from any City fund. DEBT MANAGEMENT POLICIES Policy Limits. The City will use debt only for capital improvement or projects that have a life of more than 4 years. The City will avoid using debt for cash flow borrowing, operations, or repairs. When possible, the City will not use debt to finance equipment purchases when it is possible to purchase the equipment on a pay-as-you-go basis with equipment replacement program or capital improvement plan reserves. The City shall use G.O. tax increment bonds only when the development merits special consideration. The City’s capital improvement plan shall contain debt assumptions which match this policy and requires a commitment to long-range financial planning which looks at multiple years of capital and debt needs. Legal Limits. Minnesota Statues, Section 475 prescribes the statutory debt limit that outstanding principal of debt cannot exceed 2% of taxable market value. This limitation applies only to debt that is wholly tax-supported. The type of debt included is either general obligation debt of any size bond issue (G.O.) or lease revenue bond issues that were over $1,000,000 at the time of issuance. However, there are also several other types of debt that do not count against the limit. G.O. tax increment, G.O. special assessment, G.O. utility revenue, G.O. recreational facility revenue, and HRA-issued debt are considered to have a separate revenue source other than just taxes and are excluded from the legal debt limit calculation. Local ordinances do not limit the City’s ability to issue debt. Issuance Practices. The City uses the competitive sale method for its general obligation bond sales unless factors such as structure, size or market conditions compel the use of a negotiated sale. The City may use an outside bond attorney, an independent financial advisor, and/or other service providers to assist with the structuring and sale of the bonds. Debt Structuring. The City’s collective debt shall amortize at least 50% of its principal within 10 years. In all cases, the maturity shall be shorter than the life of the related assets. Conduit Debt. The City may participate in conduit debt financings. Development proposals are reviewed to determine if they meet program objectives and whether the proposals are financially feasible. 210 CITY OF EDINA, MINNESOTA Variable Rate Debt. The City may use variable rate debt to provide debt structuring flexibility and potential interest savings to the total debt portfolio. Variable rate debt should not constitute more than 20% of the City’s total debt obligations. Refunding. Current refunding bonds may be utilized when present value savings of 3% of refunded principal is achieved or in concert with other bond issues to save costs of issuance. Advance refunding bonds may be utilized when present value savings of 4% of refunded principal is achieved. Adopted by City Council February 20, 2007 Revisions: March 20, 2007 December 15, 2009 December 20, 2011 FINANCIAL MANAGEMENT POLICIES Strong Foundation | Livable City | Reliable Service | Better Together GLOSSARY 212 CITY OF EDINA, MINNESOTA G LOSSARY Accounting – A system to measure and communicate financial information about an organization, including annual results and current position. It has been called the “language of business”. Accrual basis of accounting – A method of accounting for transactions by recording revenues when they are earned (whether cash is received at the same time or not) and recording expenses when goods and services are received (whether cash is paid at the same time or not). Adopted budget – The City Council adopts a financial plan for a fiscal year, including revenues and other financing sources as well as expenditures, expenses and other uses. Advisory Board or Commission – The City of Edina’s boards and commissions advise the City Council on various projects and, at times, make recommendations for its consideration. The City’s boards and commissions are comprised of volunteers. Affordable housing – Housing is deemed affordable if no more than 30% of a household’s income is spent on housing costs. For Rental program the target is generally to served households with incomes at or below 60% of the Area Median Income for Hennepin County. For ownership programs, the target is to generally to serve households with incomes at or below 120% of Area Median Income for Hennepin County. Amortization— An accounting technique to periodically lower the book value or a loan or intangible asset over a set period of time. Appropriation – An authorization made by the legislative body of a government which permits officials to incur obligations against and to make expenditures of governmental resources. ARPA (American Rescue Plan Act) - An economic stimulus package to speed up the country’s recovery from the economic and health effects of the COVID-19 pandemic. Assessed valuation – Market value for all real or personal property equals the price that a property would command under competitive, open-market conditions, at the time the property is assessed. The City Assessor’s Office determines assessed valuation. In Minnesota there is a one year delay between the time a property is valued and the payment of taxes based on that value. Asset – An accounting term. Any tangible or intangible economic resource that is capable of producing future value can be considered an asset. Assets are shown on the balance sheet. Asset values are sometimes estimated as of the balance sheet date. Audit— an inspection of an organization’s accounts, typically by an independent body. Average Peer Cities — Represents average data from Bloomington, Eden Prairie and Minnetonka. 213 CITY OF EDINA, MINNESOTA GLOSSARY Balance sheet – Summarizes an entity’s financial position on a specific date, often the last day of the fiscal year. The balance sheet is sometimes described as a “snapshot of an entity’s financial position”. Governmental accounting sometimes uses alternative words or phrases to describe financial documents similar to a balance sheet, such as “Statement of Net Position” or “Statement of Fund Net Position”. Balanced budget – In the General Fund, when expenditures are exactly offset by an equal amount of revenue. Biennium/biennial – A specified period of two years. The City of Edina operates a biennial budget planning process, meaning the budget is planned for two years. Bond – A written promise to pay (debt) a specified sum of money (called principal, par or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long-term debt. Budget – The financial plan for the operation of a program or organization which includes an estimate of proposed expenditures for a given period and the proposed means of financing those expenditures. Budget transfer/interfund transfer – Budget transfers are requests to move funds from one fund to another, after the original budget has been approved by City Council. Capital asset – An accounting term used to describe assets with significant value and having a useful life of several years. Capital assets are sometimes called fixed assets. Capital Improvement Plan (CIP) – A plan to prioritize expenditures for significant projects and match financing to pay the project costs. The City of Edina prepares a five-year CIP every two years. Capital outlay – Expenditures for the acquisition of capital assets. Capital projects fund – A type of fund defined by GASB. Capital projects funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for capital outlay, other than those financed by proprietary funds. The City of Edina has one capital projects fund that we call the Construction fund. CARES—Coronavirus Aid, Relief, and Economic Security Act is a stimuls bill in response to the COVID-19 pandeimic. City Council – Five elected leaders, including the mayor, that represent the legislative arm of local government in Edina. Community Development Block Grant (CDBG) – The CDBG program is a federal program that dates back to 1974, and exists to provide communities with resources to address a wide range of unique community development needs. The City of Edina receives CDBG funding through Hennepin County. Debt service – Payment of interest and repayment of principal to holders of a government’s debt instruments. Debt service fund – A type of fund defined by GASB. Debt service funds are used to account for all financial resources that are restricted, committed, or assigned to expenditures for principal and interest. The City of Edina has one debt service fund that we call the Debt Service fund. 214 CITY OF EDINA, MINNESOTA GLOSSARY Comprehensive Plan – The Edina Comprehensive Plan is designed as a framework for guiding future development, redevelopment, and community enhancement. It reflects community vision for the orderly and coordinated physical development of a city into the future; anticipates change and provides specific guidance for long term legislative and administrative actions. It is legally required per state statute and Metropolitan Council regulation. Comprehensive Plans are updated every 10 years. Conservation and Sustainability (CAS) – In 2016 the City began collecting franchise fee revenue from both Xcel and CenterPoint customers to be used for initiatives focused on conservation and sustainability. COVID-19—the Coronavirus disease is a contagious disease caused by severe acute respiratory syndrome corona- virus 2. Deficit – May be used when discussing an entity’s balance sheet where liabilities exceed assets. Also may be used when discussing an entity’s income statement where expenditures or expenses exceed revenues during an accounting period. Depreciation – A system of allocating the cost of a capital asset over its useful life. The City of Edina uses depreciation in our enterprise funds, but not our governmental funds. Energy Use Index (EUI) – A measurement of a building’s energy use as a function of its size (square feet). It is cal- culated by dividing the total energy consumed by the building in one year by the total gross floor area of the building. Franchise fee – Sometimes called a franchise tax, this is revenue the City of Edina collects from a company in exchange for granting the right or license to market that company’s goods or services in the City’s borders. The City of Edina currently receives franchise fee revenue from Comcast Cable, Xcel Energy, and Centerpoint Energy. Enterprise fund – A type of fund defined by GASB. Enterprise funds use full accrual accounting. The City of Edina has nine enterprise funds; Utilities, Liquor, Aquatic Center, Golf Course, Arena, Art Center, Edinborough Park, Centennial Lakes, and Sports Dome. Enterprise Resource Planning (ERP) – A business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back-office functions related to technology, services and human resources. Expenditure – An accounting term often used when discussing governmental or modified accrual accounting. Expenditures are generally recorded when a liability is incurred, as expenses are recorded under accrual accounting. However, some changes in long-term liabilities, like debt service or compensated absences, are recorded as expenditures only when payment is due. Expense – An accounting term. Expenses include outflows of economic resources or depletions of assets during a period of time, like a month, quarter, or fiscal year. Fiscal disparities – A program in the Minneapolis/St. Paul (MSP) metropolitan area in which a portion of the commercial and industrial property value of each city and township is contributed to a tax base sharing pool. Each city and township then receives a distribution of property value from the pool based on market value and population in each city. 215 CITY OF EDINA, MINNESOTA GLOSSARY Generally Accepted Accounting Principles (GAAP) – The body of rules that govern accounting. The City of Edina uses accounting principles generally accepted in the United States for local governments. The Governmental Accounting Standards Board (GASB) is an influential body that sets GAAP. GAAP is enforced through the audit process, when auditors render opinions on the fairness of financial statement presentations in conformity with GAAP. General fund – The General fund is the City’s primary operating fund. It accounts for the proceeds of specific revenue sources that are restricted or committed to expenditures for the specified purposes other than debt service and capital projects. It carries the basis activities of the City including Administration, Human Resources, Communications and Technology Services, Finance, Community Development, Parks and Recreation, Police, Fire, Engineering and Public Works. Geographical Information System (GIS) – a framework for gathering, managing, and analyzing data based on geography. It analyzes location and information into visualizations to reveal deeper insights. Governmental Accounting Standards Board (GASB) – An independent, non-governmental organization that is the official source of Generally Accepted Accounting Principles (GAAP) used by State and Local governments in the United States, including the City of Edina. The GASB was established in 1984 by agreement of the Financial Accounting Foundation (FAF) and 10 national associations of state and local government officials. Governmental funds – A category of funds that always includes a governmental entity’s general fund, special revenue funds, capital projects funds and debt service funds. Governmental funds use the modified accrual basis of accounting with revenues recognized in the accounting period in which they become available and measurable. Expenditures are generally recorded when a liability is incurred, as expenses are recorded under accrual accounting. However, some changes in long-term liabilities, like debt service or compensated absences, are recorded as expenditures only when payment is due. Government Finance Officers Association (GFOA) – A professional association of local government finance officers in the United States and Canada, headquartered in downtown Chicago. The purpose of the Government Finance Officers Association is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership. Greenhouse Gas (GHG) – A gas that has the property of absorbing infrared radiation (net heat energy) emitted from Earth’s surface and reradiating it back to Earth’s surface, thus contributing to the greenhouse effect. GHG is a common indicator used in climate change discussions. Homestead market value exclusion – Property that is homesteaded is eligible to receive the Homestead market value exclusion. The Homestead market value exclusion causes the amount of value that is taxable to be reduced by excluding a portion of a property’s estimated market value. Housing and Redevelopment Authority (HRA) – The Edina HRA is an entity legally separate from the City, established in 1974 for the purpose of undertaking urban redevelopment projects and assisting with the development of affordable housing. The members of the City Council comprise the five-member board of commissioners of the HRA. 216 CITY OF EDINA, MINNESOTA GLOSSARY Income statement – Summarizes an entity’s revenues and expenses or expenditures for a specified accounting period, such as a month, quarter, or fiscal year. The income statement is sometimes also called the profit and loss (P&L), statement of operations, earnings statement or other similar term. Governmental accounting sometimes uses additional alternative words or phrases to describe financial documents similar to an income statement, such as “Statement of Activities”, “Statement of Revenues, Expenditures, and Changes in Fund Balances” (governmental funds), or “Statement of Revenues, Expenses, and Changes in Fund Net Position/Equity” (proprietary funds). Integrity, Quality, Service (IQS) – Edina IQS are the organizational values of City Staff that guide organizational thinking and actions. The three values were developed by City staff in a visioning process. Internal services – The City of Edina is a diverse organization that has several departments, divisions and business units. There are some common costs (overhead) like property and liability insurance, IT services, building maintenance and equipment maintenance that we have found are most efficiently performed internally for all of our business units. The term internal service is how we describe our system for allocating the costs of this overhead to the business units that benefit from them. Internal service fund – Internal service funds are used to account for financing of goods or services provided by one department or agency to other departments or agencies of the government on a cost-reimbursed basis. The City of Edina has four internal service funds; Risk Management, Equipment Operations, Information Technology, and Facilities Management. International Association of Public Participation (IAP2) – An organization that leads, advances and advocates for best practices in public participation. Edina staff use tools and techniques from IAP2. k—Represents thousand(s). League of Minnesota Cities (LMC) – The LMC is a membership organization dedicated to promoting excellence in local government. The League serves its more than 800 member cities, including Edina, through advocacy, education and training, policy development, risk management, and other services. Levy – An act of imposing a tax, fine, or other fee. Levy limit – The amount a local unit of government is permitted to levy for specific services under state law. Annual levy limits, when applicable, are set by the State Legislature. Liability – An accounting term. A liability is an obligation arising from past events, the settlement of which is expected to result in an outflow of resources (assets). Liabilities are shown on the balance sheet. Liability values are sometimes estimated as of the balance sheet date. Local Government Aid (LGA) – A Minnesota State government revenue sharing program for cities with low property wealth or high service burdens that is intended to provide an alternative to the property tax. The City of Edina doesn’t receive LGA. Local sales taxes – A local tax levied on the sale of goods and services to be used for specific purposes by a local government. The City of Edina doesn’t impose or collect any local sales taxes. M—Represents million(s). 217 CITY OF EDINA, MINNESOTA GLOSSARY Major fund – Under GASB 34 certain funds are designated as major funds. Major funds must have their own columns in the fund financial statements in the Comprehensive Annual Financial Report. The General fund is always a major fund and other funds are considered major if they meet certain financial criteria. Management Cost Recovery (Mgmt CR) - Cost recovery percentages indicate a facility’s ability to cover operating expenses. The calculation is operating revenue divided by operating expense excluding depreciation, central services and water/storm/sewer expenses. Goals are set with each budget cycle. Market value – The amount for which something is valued on a given market. Municipal Legislative Commission (MLC) – The MLC is a lobbying group that provides a voice at the state capital for 16 suburban communities, including Edina, sharing common demographic, economic and tax base characteristics. Municipal State Aid (MSA) – A city designated street that becomes part of a broader state transportation system. This designation allows the city to receive resources to assist with the construction and maintenance of the street. Net position – Represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources in fund financial statements. Ordinance – A piece of legislation enacted by a municipal authority. The City Council passes ordinances. Pedestrian and Cyclist Safety (PACS) – In 2013 the City began collecting franchise fee revenue from both Xcel and CenterPoint customers to be used for the creation, maintenance and improvement of non-motorized transportation facilities in Edina. Property tax levy – The City of Edina goes through a budget process to determine what services we will provide, what those services will cost, and where we will get the money. The City Council sets the annual property tax levy, which is then certified to Hennepin County for collection. Property tax refund – The State of Minnesota has a program to partially refund property taxes to those taxpayers whose property taxes are out of proportion with their incomes, according to program guidelines. The program is available to homeowners and renters. Proprietary fund – Proprietary funds are used to account for activities that involve business-like interactions. These funds are considered self-supporting in that services rendered by them are generally financed through user charges or on a cost reimbursement basis. There are two types of proprietary funds; enterprise and internal service. Quality of Life survey (QLS) – A survey of residents commissioned by the City of Edina designed to provide performance feedback to the City Council and city staff. Revenue – An accounting term. Revenues include money an organization receives during a period of time, like a month, quarter, or fiscal year. SAFER—Staffing for Adequate Fire and Emergency Response grant Special assessment – The City places a financial lien against a property to recoup the cost of certain improvements or services provided to a property, such as a street or utility improvement or unpaid utility services. 218 CITY OF EDINA, MINNESOTA Special revenue fund – A type of fund defined by GASB. Special revenue funds are used to account for all financial resources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. The City of Edina has seven special revenue funds; HRA, PACS, CAS, CDBG, Police, Braemar Memorial, and Arts and Culture. State general property tax – The State of Minnesota imposes property taxes on commercial, industrial, and seasonal recreational properties. Subsidize/subsidy – An act of supporting a fund, organization, or activity financially. Supervisory Control and Data Acquisition (SCADA) – A computer system for gathering and analyzing real time data. SCADA systems are used to monitor City utilities such as lift stations, water treatment plants, and water towers. To be determined (TBD) – Information that cannot be verified. Tax capacity – The valuation of property based on market value and class rates. For properties in Edina, the City Assessor’s office sets the value, the State of Minnesota sets the class rates, and Hennepin County performs the calculation. Tax-Increment Financing (TIF) – A public financing tool that uses incremental growth in property taxes to fund public improvements and public benefits. TIF Districts and use of TIF is governed by Minnesota State Law. Vision Edina – A community visioning process conducted in 2015 that produced a strategic vision and framework for the community. This served as the initial direction for the 2019 Comprehensive Plan update.