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HomeMy WebLinkAbout2024-2025 Annual Budget2023 Edina City Council Mayor James Hovland Council Member Carolyn Jackson Council Member James Pierce Council Member Kate Agnew Council Member Julie Risser City of Edina Staff City Manager Scott Neal Former Assistant City Manager Lisa Schaefer Interim Assistant City Manager Don Uram Finance Director Alisha McAndrews Assistant Finance Director Pa Thao Contributing Staff Financial Analyst Mallory Jensvold Accounting Coordinator Tenzin Dongchung City Management Fellow Gillian Straub 1 2 Table of Contents Overview 6 7 13 14 21 City Manager’s Message Executive Summary Form of Government Strategic Plans & Performance Budget Process Community Profile 22 Budget Summary 28 31 33 37 42 44 47 Fund Descriptions Transfers Debt Service Budget Factors Economic Outlook Long-term Planning City of Edina Employees Capital Improvement Plan 49 Departments 56 58 60 62 64 66 68 70 72 76 80 84 Department Overview Administration Communications Finance Human Resources Information Technology Community Development Housing & Redevelopment Authority Engineering Fire Parks & Recreation Police Public Works 86 Financials 90 91 93 96 99 102 105 Consolidated Budget Summary Combined Budget Summary 2022 Actual Financial Results by Fund 2023 Budget by Fund 2024 Budget by Fund 2025 Budget by Fund Tax Increment Financing District Budgets Projected Changes in Fund Balance – All Funds 107 Appendices 112 113 117 Basis of Accounting and Basis of Budgeting Financial Management Policies Fund Definitions Glossary 120 3 This page intentionally left blank. 4 Strong Foundation Reliable Service Livable City Better Together Overview 5 City Manager’s Message Greetings, The most important policy and operational decision made by the City Council each year is their approval of the biennial City budget. The 2024-2025 City budget plans for the City to spend nearly $190 million in 2024 on new and improved City infrastructure like streets, trails, sewers, water lines and traffic signals. The 2024-2025 budget also provides for new parks, bridges and storm water management ponds. The City will increase the number of full-time police officers and paramedic-fire fighters to maintain and improve the feeling of public safety in the community. We will continue to refine and improve other City services like property assessing, building inspections, rental housing inspections, planning & zoning reviews and community engagement at Better Together Edina. The City Council makes collective decisions on behalf of the residents and property owners of Edina. This budget book describes the projects, programs, equipment and services that are part of our 2024-2025 budget and work plan. The Council’s support for continued investment into Edina is notable because it helps set the City on the right course to preserve the quality of life in Edina for the future. On behalf of the City staff members and City Council Members, I want to thank the residents and taxpayers of Edina for providing us the fiscal and operational support we need to keep Edina an exceptional place to live, work and play. Scott H. Neal, City Manager Scott H. Neal City Manager Table of Contents 6 Executive Summary The 2024-2025 budget details the key priorities of the City Council 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. The fund-level section shows all expenditures by department and type and can be found on page 90. The departmental organization gives insight into the types of services and programs that each one delivers, the departmental goals - in support of the citywide goals, and performance measures, which can be found on pages 56-87. The City is re-evaluating its performance measurement system, to better identify the effectiveness of services and programs. Many of the performance measures use the Quality of Life Survey that is administered every other year to residents. 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 2024-2025 biennial budget looks beyond the uncertainty of the COVID-19 pandemic, with a focus on infrastructure, safety, and service. Edina faces this environment with a solid foundation of a strong, diverse and growing economy, with an estimated market value of $16.8 billion in 2023. This strength is recognized by the rating agencies, who have awarded the City with Aaa/AAA bond ratings. Against this backdrop, the 2024-2025 biennial budget focuses 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. Community-driven budget enhancements include: •Improving public safety response and outcomes through increased police and fire staffing, mental health response and neighborhood engagement positions. •Providing competitive employee compensation and benefits to attract and retain a skilled and high- performing workforce needed to deliver services to the community. •Improving safety and ability to adequately respond to social disruption events through additional facility coordinator positions. •Increasing investment in technology systems ensuring security and continuity of operations. 7 Consolidated Budget The City’s consolidated annual budget is $190 million for 2024 and consists of diverse revenue streams, including property taxes, licenses and permit fees, sales of business-like enterprises, grants from federal and state government agencies and the new local sales tax. Property Tax 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 2024 budget is $54,418,565, which is a 9.15 percent increase over 2023. For a median- valued home of $696,600, this would be about a monthly increase of about $12.39 or an annual increase of $148.71. Edina Consolidated Budget (in millions) $190 Governmental Funds $107 General Fund $63 Debt Service Fund $8 Construction Fund $26 Special Revenue Funds, including HRA $10 Enterprise Funds $74 Utility Fund $45 Liquor Fund $15 Park Enterprises $14 Internal Service Funds $9 Risk Management $3 Equip. Operations $2 IT $3 Facilities $1 - 10 20 30 40 50 60 70 2020 2021 2022 2023 2024 2025Taxy Levy Dollars in MillionsCity of Edina Property Tax Levy General Fund Debt Service Fund Construction Fund HRA Fund 8 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, for example, the new Fire Station 2. 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. 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 and fire trucks. 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. General Government 16% Public Safety 40%Public Works 15% Parks and Recreation 10% Debt Service and Capital Outlay 19% What Will My 2024 City Property Taxes Pay for? 9 The City receives 23 percent of property taxes paid by residents. The remainder is distributed to the Edina School District, Hennepin County, and other taxing districts. Where Do My Property Taxes Go? 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 below 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. City Property Taxes Comparison 2023 City Taxes on $400,000 House Taxes payable in 2023 is most recent data available on all cities 1 Plymouth $ 983 2 Maple Grove $ 1,077 3 Edina $ 1,119 4 Woodbury $ 1,147 5 Eden Prairie $ 1,158 6 Lakeville $ 1,183 7 Shakopee $ 1,219 8 Shoreview $ 1,230 9 Eagan $ 1,339 10 Minnetonka $ 1,361 11 Apple Valley $ 1,407 12 Savage $ 1,435 13 Bloomington $ 1,572 14 Maplewood $ 1,617 15 Burnsville $ 1,729 16 St. Louis Park $ 1,774 17 Richfield $ 2,079 18 Golden Valley $ 2,147 19 Minneapolis $ 2,316 20 Hopkins $ 2,510 Hennepin County 29% City of Edina 23% Edina School District 41% Watershed, Metro Districts, & Other 7% 10 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 $61 million in general fund revenue in 2024, with 72 percent of the revenue coming from the property tax levy. 2024 General Fund Revenue Property Taxes The general fund property tax is the primary source of general fund revenues, and it is the largest tax collected by the City for any fund. 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. Intergovernmental 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. Other Revenue Includes fines and forfeitures, investment income, lodging tax, building rentals and other revenue sources. Other Revenue 2% Property Taxes 72% Franchise Fee 2% Licenses & Permits 9% Intergovernmental 5% Charges for Services 10% 11 General Fund Expenditures The following graphs provide 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 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 allocate the expenses to each department that benefits from these key business functions. General Fund Expenditures by Type General Fund Expenditures by Department $35.54 $36.46 $43.20 $46.93 $9.36 $8.29 $10.66 $10.69 $5.01 $5.01 $5.97 $6.28 $2.31 $2.48 $2.53 $2.59 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 2022 Actuals 2023 Budget 2024 Budget 2025 BudgetExpenditure by Type, MillionsSalary & Benefits Contractual Services Internal Services Commodities $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Police Fire Public Works Parks & Recreation Administration Engineering Community Development Communications Human Resources Finance Expenditure by Department, Millions 2025 Budget 2024 Budget 2023 Budget 2022 Actuals 2021 Actuals 12 Form of Government 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 a 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, along with an administration department. 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. Community Development Engineering Fire Parks & Recreation Police Public Works Assistant City Manager RESIDENTS City Manager CITY COUNCIL Administration Communications Information Technology Finance Human Resources Supporting Departments Operating Departments 13 Strategic Plans and 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. 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. 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 Comprehensive 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 pages 49-52. 14 City Work Plans & Relationship to Strategic Plans These strategic plans guide the creation of the biennial Budget Work Plan, which in turn drives other implementation- level work plans, including department work plans, commission work plans and individual employee work plans. 15 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. The Budget Work Plan is guided by: Budget Pillars The broad outcomes to be achieved by the two-year budget. These outcomes are: Strong Foundation, Reliable Service, Livable City and Better Together. The pillars stay consistent from year to year. Budget Objectives The measurable results to be achieved during this budget to make progress on each budget pillar. Strategies and Actions The specific methods and projects undertaken in the two-year budget cycle to meet the objectives and outcomes. Budget Pillars & Objectives City infrastructure, facilities, technology, and equipment meets community needs now and in the future. City services enhance the safety, wellbeing, and quality of life experienced in Edina. City planning fosters healthy, connected, sustainable development that enriches the lives of current and future residents. City government fosters an inclusive, informed and engaged community. 16 Strong Foundation 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 avoid service disruptions and prevent emergency repairs. •Integrated project scope and decision-making processes partner with customers, stakeholders, and related City services to deliver best value projects that will serve Edina now and in the future. •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. Reliable Service 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 development opportunities attract and retain a skilled and high-performing workforce. 17 Livable City 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). •A variety of housing options are 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. Better Together 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. The decision to be made and the decision-making process will be clearly defined. Outcomes of inclusive engagement methods include: 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 identity or protected classes, such as race, color, creed, religion, age, sex, sexual orientation, gender expression, marital status, disability, status with regard to public assistance, familial status or national origin in connection with employment, housing and real property, public accommodations, public services, credit and education. 18 2024-2025 Budget Strategies & Actions # Budget Pillar Budget Work Plan Action Description 1 Design and construct Cahill/Industrial area sanitary sewer trunk capacity expansion project. 2 Determine location, finance method and plan for Fire Station #3 in the northeast quadrant of the City, utilizing response models to provide efficient emergency response to all residents. 3 Determine long-term plan for the future of the Art Center building and delivery of art programs. 4 Complete Grandview Area transportation improvements. 5 Design and construct both Braemar Park and Arena and Fred Richards Park improvements. 6 Complete next phase of the York Avenue sanitary sewer trunk capacity expansion project. 7 Increase resources, training, and interdepartmental coordination for responding to mental health-related calls for service. 8 Implement new agreement with Edina Public Schools regarding election administration for 2025 and beyond. 9 Determine and plan for THC/Cannabis legislation impacts. 10 Support staff who experience social disruption events and PTSD effects through adequate staffing levels, preventative measures, and after-event follow up. 11 Advance progress to meet affordable housing goals, including increasing housing options and developing a long-term growth strategy. 12 Prepare for the Comprehensive Plan update by identifying all chapters for potential change, seeking a consulting firm to coordinate all updates, and assembling a working group to weigh in on the updates needed, including a focus on balancing mixed-use nodes, activation and commercial zoning. 13 Administer the 2025 Quality of Live Survey. 14 Refine community engagement processes, including how to engage throughout the city with unity, not division. 19 Organizational Values While Budget Pillars and Objectives direct the work of City staff, Organizational Values guide how we do that work. 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. 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. 20 Budget Process & Timeline 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 alternates 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 they are sustainable and able to meet the goals of the City. The two-year operating budget created during odd-numbered years takes effect on January 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. For the 2024-2025 budget, the budget is developed in 2023. See the timeline for the development process. The budget will take effect on January 1, 2024. During the spring and summer of 2023, the Finance Department worked with all City departments to create a budget that was reflective of the goals and priorities 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 it relates 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 department. The City is empowered to levy a property tax on both real and personal property located within its boundaries. May 2023 Council retreat to develop 2024- 2025 budget work plan goals. June 1, 2023 Department directors finalize budget requests. July 19, 2023 The City’s Executive Leadership Team (ELT) reviews the 2024- 2025 draft budget. August 2, 2023 Council Work Session to introduce the City Manager’s proposed 2024-2025 budget work plan themes and budget scenarios. September 5, 2023 Council work session to review City Manager’s proposed 2024- 2025 budget draft. September 19, 2023 Preliminary levy is adopted by City Council and HRA. November 21, 2023 City Council and staff discuss and make any necessary changes to the 2024-2025 budget. December 5, 2023 Public Hearing on the 2024 operating budget and levy at the City Council meeting. December 19, 2023 City Council adoption of the final 2024-2025 budget and property tax levy. 21 Community Profile Edina’s History 1860 Irish families settle near Minnehaha Creek. The area is primarily a small farming and milling community. 1888 Residents vote to separate from Richfield Township and incorporate as the village of Edina. The village of Edina was about 20 families. Following the Civil War, Black families came to settle in Minnesota, including Edina. The Yancey family features prominently in Edina’s history as farmers and left a legacy of civic involvement. 1920 The Morningside neighborhood secedes from Edina to become its own village. 1924 Racial restrictions begin to appear in deeds of conveyance for residential properties, including those in the original Country Club District. 1948 Municipal off-sale liquor is approved by Edina voters. 1956 Southdale Center opened as the first fully indoor shopping mall in the United States; the mall is still open today. 1966 The Village of Morningside rejoins the City of Edina. 1997 Centennial Lakes redevelopment is completed, opening as a man-made pond, office park and living space. Edina Mills Site – located on Minnehaha Creek, the mill was a waterpower resource, grist mill and grain storage. It was in use from 1859 to 1906. Southdale Center – designed to inspire the sidewalk café culture, the shopping center became the model for the modern American mall. Hughes Pavilion at Centennial Lakes Park – formerly a gravel pit, the area was redeveloped into mixed-use space. 22 39 39 37.7 44.8 34 36 38 40 42 44 46 United States Minnesota Hennepin County Edina Percent of Population with Bachelor’s Degree or Higher Edina Today 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. The City is now a fully developed first-ring suburb of Minneapolis. 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 has three school districts within its boundaries: Edina (ISD 273), Hopkins (ISD 270), Richfield (ISD 280), with most of Edina’s school-age residents enrolled in Edina Public Schools. Community Demographics Edina $115,047 Hennepin County $85,438 Minnesota $77,706 United States $69,021 Average median income from 2017-2021, in 2021 dollars Percent of Population Speaking Language Other than English at Home Edina 12% Hennepin County 18% Minnesota 12% United States 22% Percent of population from 2017-2021, for population age 5 years and greater 34%38% 52% 72% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% United States Minnesota Hennepin County Edina 16 square miles 53,572 residents 95 percent developed $16.8 billion est. market value 45 neighborhoods 45,000 jobs in the community 41 city parks Median Age Median Household Income 23 Edina’s Economy Important indicators of local economic health are diversity in top employers and taxpayers, and the estimated market value of property in the City. Economic indicators that inform budget decisions can be found on pages 42-45. Top employers Edina is not overly reliant on one employer or industry. Employer Employees Percentage of Total City Employment Edina Realty 2,304 9.09% Edina Public Schools ISD #273 2,000 7.89% Coldwell Banker Realty 1,870 7.38% Fairview Southdale Hospital 1,624 6.41% City of Edina 929 3.66% BI Worldwide 737 2.91% Dow Water & Process Solutions 600 2.37% Lund Food Holdings 500 1.97% Western National Insurance Co. 430 1.70% Target 375 1.48% This is 2022 data from the City, Axle Reference Solutions, written and telephone survey (May 2022), and the Minnesota Department of Employment and Economic Development. Top taxpayers There are several large taxpayers in the City that are important, but none are dominant. Taxpayer Tax Capacity Percentage of Total Tax Capacity Centennial Lakes Office 3,265,320 1.92% Galleria Shopping Center 2,978,233 1.75% Southdale Shopping Center 2.758,724 1.62% Southdale Medical Building 1,573,521 0.93% Cedars of Edina 1,213,080 0.71% The Bower Residences 1,066,625 0.63% 71 France Apartments 1,020,157 0.60% Centennial Lakes Plaza 955,602 0.56% Southdale Office Center 946,290 0.56% Onyx Apartments 907,650 0.53% This is 2022 data from the City of Edina Assessing Division. 76% 14% 1%6%0%3% 83% 8%1%6%0%3% 73% 15% 1%8%0%4% 85% 2%0%7%0%4% 0% 20% 40% 60% 80% 100% White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Two or More Races Race Demographics United States Minnesota Hennepin County Edina 24 Estimated Market Value The total estimated market value for Edina in 2023 is $16.8 billion, an increase of approximately $1.27 billion, or 8.2 percent greater than the $15.54 billion total in 2022. Approximately 75 percent of the total market value comes from residential properties, while 25 percent is comprised of commercial, industrial, and apartment properties. The city’s 2023 total market value increase of 8.2 percent includes $287 million in new construction. Residential properties account for 52 percent of this new construction. Apartments comprised 36 percent, and commercial and industrial properties make up the remaining 12 percent. 9.04 9.81 10.39 10.87 11.62 12.33 12.83 13.29 13.76 15.45 16.8 50 100 150 200 250 300 350 0 2 4 6 8 10 12 14 16 18 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 New Construction (Millions)Estimated Market Value (Billions)Estimated Market Value and Value of New Construction Estimated Market Value (Billions)New Construction (Millions) 25 This page intentionally left blank. 26 Strong Foundation Reliable Service Livable City Better Together Budget Summary 27 Fund Descriptions 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. Governmental funds are primarily tax supported while proprietary funds are supported by business-like activities. All of the City’s funds can be classified as major or minor. A major fund is a fund whose revenues, expenditures, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. 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 nine major funds: General Fund, Debt Service Fund, Construction Fund, HRA Fund, Liquor Fund, Utility Fund, Aquatic Center Fund, Braemar Arena Fund and the Golf Course Fund. Major funds are noted in light blue. The following chart lists all governmental and proprietary funds which make up the consolidated budget, and all the following funds are appropriated. CITY OF EDINA BUDGET FUNDS Governmental Funds Proprietary Funds General Fund Construction Fund Liquor Fund Utility Fund Debt Service Fund Special Revenue Funds Park Enterprise Funds Internal Service Funds Braemar Memorial Fund Community Development Block Grant Fund (CDBG) Conservation & Sustainability Fund (CAS) Federal Award Pass-thru Fund Housing & Redevelopment Authority Fund (HRA) Opioid Epidemic Response Fund Pedestrian & Cyclist Safety Fund (PACS) Police Special Revenue Fund Public Safety Fund Art Center Fund Aquatic Center Fund Braemar Arena Fund Braemar Field Fund Centennial Lakes Park Fund Edinborough Park Fund Golf Course Fund Equipment Operations Fund Facilities Management Fund Information Technology Fund Risk Management Fund 28 Governmental Major Funds $62,940,485 2024 Revenues $62,940,485 2024 Expenditures $66,848,197 2025 Revenues $66,848,197 2025 Expenditures $6,338,113 2024 Revenues $7,880,182 2024 Expenditures $8,734,761 2025 Revenues $25,012,343 2025 Expenditures 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 including police, fire, community development, and administrative services. The budget for 2024-2025 is a 19.53 percent increase from the 2022-2023 budget. This increase is driven by spending of federal ARPA funds in 2024-25, salaries and benefits for existing staff and new positions, workers’ compensation costs, inflation in contracts for services and supplies, and IT systems and security. More information on the fund can be found on pages 93-104. Debt Service Fund The Debt Service Fund pays for long-term debt principal and interest primarily issued on capital improvement projects and equipment improvement. The expense budget for 2024-2025 is a 90.05 percent increase from the 2022-2023 budget. This increase is due to a $17 million temporary bond issuance for the site acquisition and predesign of Fire Station 2 coming due. However, the City plans to roll this issuance into permanent debt financing along with the construction bond issuance in Spring 2024, which will result in annual debt service payments estimated to be two to three million dollars. More information on the fund can be found on pages 93-104 Construction Fund The Construction Fund accounts for governmental fund City construction projects and finances the City’s Capital Improvement Plan (CIP) and the $16,739,096 2024 Revenues $25,605,821 2024 Expenditures $16,793,637 2025 Revenues $23,792,288 2025 Expenditures Equipment Replacement Program. Special assessments and state highway aid are also included in the Construction Fund. The budget for 2024-2025 is an 8.52 percent increase from the 2022-2023 budget. More information on the fund can be found on pages 93-104 Housing & Redevelopment Authority (HRA Fund The City established the Housing and Redevelopment Authority as a separate legal entity in 1974 to undertake urban redevelopment projects and assist with the development of affordable housing with tools such as Tax Increment Financing (TIF. The budget for 2024-2025 is a 25.60 percent decrease from the 2022-2023 budget due to fewer projected projects and reimbursements. More information on the fund can be found on pages 93-104 $3,496,700 2024 Revenues $6,722,808 2024 Expenditures $3,778,300 2025 Revenues $10,802,028 2025 Expenditures 29 Proprietary Major Funds $14,842,525 2024 Revenues $15,052,304 2024 Expenditures $15,064,173 2025 Revenues $16,219,795 2025 Expenditures Liquor Fund 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, including Braemar Arena, Centennial Lakes Park, and the Art Center, reinvesting in the community. Transfers to other funds total one million dollars in 2024. The budget for 2024-2025 is a 2.58 percent increase from the 2022-2023 budget. More information on the fund can be found on pages 93-104. Utility Fund This fund accounts 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 $30,763,603 2024 Revenues $44,591,224 2024 Expenditures $32,477,581 2025 Revenues $35,658,425 2025 Expenditures residents. The City recovers the cost of providing utility services through fees charged to residents and businesses. The budget for 2024-2025 is a 72.55 percent increase from the 2022-2023 budget due to the inclusion of planned capital spending. More information on the fund can be found on pages 93-104. Aquatic Center Fund This fund accounts for the operations of the City’s outdoor municipal pool. The Aquatic Center has a 50-meter lap pool and attractions such as body slides, surf simulator, zipline, and a zero-depth water play feature. The budget for 2024-2025 is a 16.69 percent increase from the 2022- 2023 budget due to salary and benefits for new program and facility coordinators and capital outlay. More information on the fund can be $1,214,950 2024 Revenues $1,328,318 2024 Expenditures $1,249,100 2025 Revenues $1,567,371 2025 Expenditures found on pages 93-104 Braemar Arena Fund 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 $3,005,000 2024 Revenues $3,234,611 2024 Expenditures $3,005,000 2025 Revenues $3,336,310 2025 Expenditures March. The budget for 2024-2025 is a 2.56 percent decrease from the 2022-2023 budget. More information on the fund can be found on pages 93-104, Golf Course Fund This fund accounts for the City’s golf business, which Edina established in 1964 when Braemar Golf Course was founded. 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 budget for 2024-2025 is a 2.26 percent increase from the 2022-2023 budget. More information on the fund can be found on pages 93-104. $6,196,550 2024 Revenues $5,122,928 2024 Expenditures $6,201,550 2025 Revenues $5,271,422 2025 Expenditures 30 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 2025, as shown on the next two pages. 2024 Transfers and Contributions Out: Budgeted transfers in 2024 include: 1. $200,000 in total transfers out of the General Fund to Centennial Lakes Park to help finance the operation of this park. 2.$2.8 million 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. 3.$1 million in total transfers out of the Liquor Fund to Braemar Arena, Edina Art Center and Centennial Lakes Park to help finance the operation of these enterprises. 4. $371,000 in total transfers out of the Utility Fund is for utility contributions to the various City properties. To track the total cost of a facility, utilities are charged to city-owned facilities, but used for informational purposes only and money is not moved from those funds to the Utility Fund. General Fund Construction Utilities Liquor Total Transfers and Contributions in: General Fund -$ -$ 156,300$ -$ 156,300$ Debt Service - 2,866,413 - - 2,866,413 Liquor - -5,180 - 5,180 Aquatic Center - -17,000 - 17,000 Golf Course - -61,050 - 61,050 Arena - -50,000 350,000 400,000 Sports Dome - -1,300 - 1,300 Art Center - -- 300,000 300,000 Edinborough - -17,000 - 17,000 Centennial Lakes 200,000 - 64,000 350,000 614,000 Total 200,000$ 2,866,413$ 371,830$ 1,000,000$ 4,438,243$ 31 2025 Transfers and Contributions Out General Fund Construction Utilities Liquor Total Transfers and Contributions in: General Fund $ -$-$157,000 $-$ 157,000 Debt Service -2,948,861 - - 2,948,861 Liquor --5,180 - 5,180 Aquatic Center --17,000 -17,000 Golf Course --61,050 -61,050 Arena --50,000 350,000 400,000 Sports Dome --1,300 - 1,300 Art Center --- 300,000 300,000 Edinborough --18,000 -18,000 Centennial Lakes 350,000 -64,000 350,000 764,000 Total $ 350,000 $2,948,861 $373,530 $1,000,000 $ 4,672,391 Budgeted transfers in 2025 include: 1. $350,000 in total transfers out of the General Fund to Centennial Lakes Park to help finance the operation of this park. 2.$2.9 million 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. 3.$1 million in total transfers out of the Liquor Fund to Braemar Arena, Edina Art Center and Centennial Lakes Park to help finance the operation of these enterprises. 4. $373,000 in total transfers out of the Utility Fund is for 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 Utility 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 that is above the target ranges established in the Fund Balance Policy. Typically, this amount is known when the annual audit is finished around June. 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 capital equipment needs. 32 Debt Service Minnesota laws limit the amount of debt the City may issue to three percent of the assessor’s market value of the City’s tax base. The assessor’s three percent market value less net debt is referred to as the legal debt margin. The following table shows the legal debt margin at December 31, 2022. Legal Debt Margin Calculation for Fiscal Year 2022 According to this calculation, the City has the ability to issue over $370 million in additional debt before reaching the statutory limit. This level of capacity to issue new debt means that the City is in a secure financial position. Edina currently holds a triple A bond rating from both Moody’s and S&P. The City had six types of bonded debt outstanding on Dec. 31, 2023: general obligation (GO) bonds, public project revenue bonds, TIF bonds, MSA bonds, GO PIR bonds and revenue bonds. GO bonds are payable from general property taxes. Public project revenue bonds are payable from annual appropriation lease payments received from the City pursuant to a lease between the Edina Housing and Redevelopment Authority and the City. The special assessment bonds include permanent improvement revolving (PIR) bonds that are payable from special assessments with any deficiency to be provided for by general property taxes. Enterprise revenue bonds are payable primarily from revenue from the City’s enterprise facilities with any deficiency to be provided for by general property taxes. Edina’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities in the table on the following page, which projects changes in debt levels for the next two years. Not represented below are additional bond issuances that are anticipated over the next two years for road reconstruction, utility projects, and park improvement projects to be supported by the new local sales tax. City staff are in the very early stages of planning these projects, so it is too premature to include them in the budget projections. Market Value (after fiscal disparities)13,796,381,100$ Debt Limit (3% of market value)413,891,433 Debt Applicable to Limit: General Obligation Bonds 30,065,000 Public Project Revenue Bonds 12,930,000 Total Debt Applicable to Limit 42,995,000 Legal Debt Margin 370,896,433$ 33 Governmental and Business-Type Activity Debt Projections, 2024-2025 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, 2023, is shown below. 12/31/2023 12/31/2024 12/31/2025 Balance Reductions Balance Reductions Balance Governmental Activity Debt: General Obligation 28,585,000$ (1,560,000)$ 27,025,000$ (18,850,000)$ 8,175,000$ Public Project Revenue 11,860,000 (1,100,000) 10,760,000 (1,135,000) 9,625,000 TIF Bonds 7,295,000 (260,000) 7,035,000 (270,000) 6,765,000 MSA Bonds 10,465,000 (485,000) 9,980,000 (510,000) 9,470,000 Special Assessment Bonds 25,713,000 (1,794,000) 23,919,000 (1,940,000) 21,979,000 Subtotal 83,918,000 (5,199,000) 78,719,000 (22,705,000) 56,014,000 Business-Type Activity Debt: Enterprise Revenue 51,834,000 (5,707,000) 46,127,000 (6,004,000) 40,123,000 Citywide Grand Total 135,752,000$ (10,906,000)$ 124,846,000$ (28,709,000)$ 96,137,000$ 2024 2025 34 Debt Service to Maturity, All Debt Types Year Ended Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Total P&I 2024 1,560,000 736,475 1,100,000 367,644 260,000 207,050 485,000 511,125 1,794,000 858,888 5,707,000 2,041,171 10,906,000 4,722,353 15,628,353 2025 18,850,000 498,200 1,135,000 335,006 270,000 196,450 510,000 486,250 1,940,000 791,436 6,004,000 1,796,881 28,709,000 4,104,223 32,813,223 2026 1,930,000 252,575 1,170,000 302,244 280,000 185,450 535,000 460,125 2,058,000 723,701 5,637,000 1,571,025 11,610,000 3,495,120 15,105,120 2027 2,000,000 181,833 825,000 273,244 290,000 174,050 560,000 432,750 2,145,000 651,674 5,840,000 1,346,369 11,660,000 3,059,920 14,719,920 2028 2,065,000 116,350 850,000 247,588 300,000 162,250 590,000 404,000 2,211,000 577,109 4,968,000 1,131,499 10,984,000 2,638,796 13,622,796 2029 1,745,000 52,244 875,000 220,088 315,000 149,950 620,000 373,750 2,175,000 499,954 4,381,000 941,029 10,111,000 2,237,015 12,348,015 2030 435,000 10,875 905,000 191,163 325,000 137,150 650,000 342,000 2,145,000 421,594 3,992,000 769,161 8,452,000 1,871,943 10,323,943 2031 - -935,000 160,678 340,000 123,850 685,000 308,625 2,020,000 346,256 3,325,000 621,394 7,305,000 1,560,803 8,865,803 2032 - -965,000 128,013 355,000 111,725 715,000 273,625 2,100,000 275,344 2,700,000 496,225 6,835,000 1,284,932 8,119,932 2033 - - 1,000,000 93,625 365,000 100,925 750,000 237,000 1,615,000 213,431 2,820,000 374,200 6,550,000 1,019,181 7,569,181 2034 - - 1,030,000 57,456 375,000 89,825 790,000 198,500 1,340,000 164,141 2,085,000 265,275 5,620,000 775,197 6,395,197 2035 - - 1,070,000 19,394 385,000 78,425 830,000 158,000 1,215,000 120,738 1,015,000 193,375 4,515,000 569,932 5,084,932 2036 - - - - 395,000 66,725 870,000 115,500 1,080,000 81,088 1,065,000 141,375 3,410,000 404,688 3,814,688 2037 - - - - 410,000 56,700 915,000 70,875 740,000 51,250 1,120,000 86,750 3,185,000 265,575 3,450,575 2038 - - - - 415,000 48,450 960,000 24,000 735,000 29,100 1,175,000 29,375 3,285,000 130,925 3,415,925 2039 - - - - 425,000 40,050 - - 295,000 11,075 -- 720,000 51,125 771,125 2040 - - - - 435,000 31,450 - - 105,000 2,100 - - 540,000 33,550 573,550 2041 - - - - 445,000 22,650 - - - - - - 445,000 22,650 467,650 2042 - - - - 450,000 13,700 - - - - - - 450,000 13,700 463,700 2043 - - - - 460,000 4,600 - - - - - - 460,000 4,600 464,600 2044 --------------- 28,585,000 1,848,552 11,860,000 2,396,143 7,295,000 2,001,425 10,465,000 4,396,125 25,713,000 5,818,878 51,834,000 11,805,104 135,752,000 28,266,226 164,018,226 General Obligation Bonds Public Project Revenue TIF Bonds Total CityMSA Bonds GO PIR Bonds Revenue Bonds 35 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. The City plans to issue debt financing for the Fire Station 2 land acquisition, design and construction in Spring 2024. The City anticipate needing to levy in 2025 for the estimated annual debt service payment of two to three million dollars. Debt Service Tax Levies Budget Budget 2021 2022 2023 2024 2025 Gymnasiums 392,000 392,000 392,000 392,000 398,000 Fire Station #1 402,000 403,000 403,000 403,000 406,000 Public Works Facility 1,695,000 1,269,000 1,269,000 1,508,000 1,512,000 Sports Dome 1,162,400 1,168,000 1,166,000 1,168,700 1,165,100 Estimated Debt Service Fire Station #2 - - - - 2,304,800 Total 3,651,400$ 3,232,000$ 3,230,000$ 3,471,700$ 5,785,900$ 36 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. 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 followed by further narrative on the City’s economic outlook which contributes to the overall stability of the budget. Revenues The City of Edina has diverse sources of revenue. The City collects property taxes, sales tax, franchise taxes and tax- increments, which combined represent 43% of the City’s annual revenue. Property taxes account for $54.4M and $61.7M of the City’s budgeted revenue in 2024 and 2025, respectively. The parks enterprise facilities, City-provided utility services, and the municipal liquor stores generate revenue for the City. Special assessments and licenses and permit fees 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. Federal & State Aid 2%Special Assessments 2% Taxes 39% Utility Fees 19% Liquor Sales 9% Parks & Recreation Sales 6% Licenses & Permits 3% All Other Revenue 20% Edina's Revenue Sources 37 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 collected 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 and restaurant licenses. The chart below shows the history of license and permit revenue collected in the General Fund. The budget for license and permit fee revenue was $5.4 million in 2022 & 2023 and has increased to $5.5 million for 2024 & 2025. Special assessments — Includes assessments levied against properties benefitting from various infrastructure improvements and street reconstruction projects. Prior to 2022, the benefitting properties were assessed the full cost of the street repairs. In 2021, the City Council approved an amendment to the City’s Special Assessment Policy to gradually phase out assessments over a 16-year period while simultaneously increasing the tax levy. 2022 was the first year of the new special street levy. The City’s Utility Fund typically pays for curbs, gutter, and underground water and sewer infrastructure. Enterprise operating revenue — Revenue generated from the City’s enterprises, including utility services, municipal liquor stores, and the parks recreational enterprises. Revenue from utility fees for sale of water, sewer, stormwater and recycling services makes up the largest share of the enterprise operating revenue at $30.2 million in 2024. The City’s financial advisor, Ehlers, prepared a rate study in 2022 that restructured water and sewer rates. It also recommends five percent annual increases to water, six percent to sewer rates, and eight percent to storm sewer rates in 2024 and beyond. The rate increases are needed to support operations, capital costs, capacity expansion projects and maintain adequate cash reserves. The second largest enterprise is the sale of off-sale liquor at the three municipally owned liquor stores. The stores are budgeted to generate $14.7 million in sales in 2024. Operating revenue is also collected at the Aquatic Center ($1.1 million), Braemar Golf Course ($6 million), Braemar Ice Arena ($2.5 million), Sports Dome ($565,000), Art Center ($120,000), Edinborough Park ($1.4 million) and Centennial Lakes Park ($900,000). Federal and State Aid — The City receives a variety of different state and federal aid and grants. In 2021, the federal Treasury Department allocated the City $4.9 million from the American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Funds. $1.3 million of the award is budgeted to be spent in 2024-2025. The City also receives an annual - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Edina License and Permit History Actual Budget 38 federal Community Development Block Grant, state aid for the fire and police departments, and state funding for road reconstruction. Fines & Forfeitures — Police citation revenue has declined significantly since 2019 due to changes in policing practices. The budget has decreased to $350,000 in each year of the biennium, which is in line with 2022 and 2023 actuals. Sales Tax — Edina voters approved a sales tax referendum in November 2022, allowing the City to collect a half percent sales tax to pay for $39.3 million in Parks & Recreation improvements. This local sales tax was effective April 1, 2023. In November 2023, Edina voters approved a referendum to use the sales tax collections to invest an additional $37.1 million to expand Braemar Arena and complete other major improvements at the facility. The sales tax expires in 19 years. If the bonds for the projects are paid off before then, the sales tax expires earlier. Other Financing Sources — The 2024-2025 budget includes use of the City’s Budget Stabilization Fund. During the COVID-19 pandemic, prior year unassigned fund balance was identified and set aside in this new fund to cover any potential 2020 budget shortfalls and to preserve future spending and service options in 2021, when it was unknown if the City’s tax levy could be increased to continue services. The 2023 balance of the Budget Stabilization Fund is $3.5 million, of which two million dollars in 2024 and one million dollars in 2025 is budgeted to be spent in the City’s General Fund. 39 Expenses Edina’s Expenditure Uses Salary and Benefits — Salary and benefits combined increased an average of five percent annually. This includes a competitive compensation package to attract and retain skilled staff and increases for health insurance coverage. The City budgeted for a three precent general wage increase in 2024 and a similar increase for 2025. Additional increases to some hourly wages are also included in the budget to help recruit for hard to fill positions. Workers’ Compensation — Workers’ compensation insurance coverage for City employees is increasing 94 percent over 2023 costs, primarily due to an increase in post-traumatic stress disorder-related claims. Service Contracts, Commodities — Contracts for services, equipment, supplies, and commodities have all increased due to inflationary pressures. Internal Service Fund Charges — Departments’ internal service fund (ISF) charges are increasing in 2024-2025 to cover increasing IT service costs, including: service contract increases, staff salary and benefit increases, IT equipment replacement according to the IT replacement schedule, and migrating the ERP system to the Tyler Cloud from the on- premises server. ISF charges are also increasing due to facility operations and maintenance and equipment maintenance inflationary cost pressures. $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 2022 Actuals 2023 Budget 2024 Budget 2025 Budget Transfers and Contributions 14,685,915 4,277,602 4,438,243 4,672,391 Personnel Services 49,620,892 54,735,288 60,155,231 65,122,212 Other Expense 11,801 --- Internal Services 7,978,288 8,190,952 9,507,757 9,937,248 Depreciation 8,864,924 8,985,000 -- Cost of Goods Sold 10,458,750 11,414,891 10,570,828 11,453,268 Contractual Services 34,728,159 28,936,987 37,494,382 39,952,285 Commodities 6,183,923 6,084,268 6,639,838 6,752,539 Capital Outlay 29,527,500 14,389,268 51,103,297 40,767,125 Debt Service 12,802,481 7,727,330 9,921,353 26,809,224Expenditure by Type, Millions40 On the Horizon The City of Edina is in the process of designing a new fire station. In June 2022, the City issued $17 million of general obligation bonds to pay for site acquisition and predesign. Construction is anticipated to begin in spring 2024. The City will roll the temporary bonds into permanent debt financing along with the financing for the construction of the station. Debt service payments are expected to begin in 2025. The fire station is anticipated to open in 2025, and the City plans to hire six additional firefighters to staff the new station. Additionally, due to growth in the City of Edina, a location and initial planning for a third fire station will be explored in 2024. 41 Economic Outlook 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 2.5 million square feet of retail space plus an amount more than twice that of general commercial and industrial space. Unemployment Rates 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 four percent since mid-2013. Property Valuation 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: 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%Jan-13Apr-13Jul-13Oct-13Jan-14Apr-14Jul-14Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Oct-17Jan-18Apr-18Jul-18Oct-18Jan-19Apr-19Jul-19Oct-19Jan-20Apr-20Jul-20Oct-20Jan-21Apr-21Jul-21Oct-21Jan-22Apr-22Jul-22Oct-22Jan-23Apr-23Jul-23Unemployment Rates Edina Hennepin County Minnesota (seasonally adjusted)United States (seasonally adjusted) 42 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. While there was a significant spike in multifamily permit valuation in 2022, valuations remained steady with previous years in 2023. Tax Capacity 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. The net tax capacity for the City of Edina grew by 13.1 percent from 2022 to 2023 and 8.4 percent from 2023 to 2024 after adjusting for tax–increment valuation and fiscal disparities contribution and distribution. The estimated market value of the City of Edina increased by 12.3 percent and 8.4 percent during the same time periods, from $13.8 billion in 2022 to $16.8 billion in 2024. This growth in estimated market value and the tax capacity of Edina can be primarily attributed to new residential construction activity. - 5,000 10,000 15,000 20,000 25,000 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Number of Building Inspections/PermitsPermit Valuation (millions)Inspections and Permit Valuations Commercial Property Permit Valuation Single Family Residence Permit Valuation Multi family Residence Permit Valuation Number of Building Inspections Number of Building Permits 20% 22% 24% 26% 28% 30% $- $50 $100 $150 $200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024MillionsTax Capacity & Tax Capacity Rate Tax capacity Tax capacity rate 43 Long-term Planning This section looks at the property tax levy and lays out assumptions for a 10-year projection that assists in long-term strategic planning and to detect any future structural budget issues and property tax levy fluctuations. The model excludes proprietary funds because the tax levy does not support proprietary funds and a separate rate study is performed every three years that builds a projection for the utility funds. As with any forecast, it is built upon assumptions, and unanticipated changes will impact actual budgets. Revenues Licenses & Permits are dependent upon redevelopment, 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 2024 budget for total General Fund licenses and permits is $5.5 million and is conservatively held at that amount in future years. Other Revenues includes fines & forfeitures, charges for services, franchise fees and are projected to remain relatively flat with a zero percent growth rate. Construction Fund Levy contains four components – capital improvement plan, equipment replacement, street reconstruction and park improvement levies. •Capital Improvement Plan (CIP) – Property taxes levied for capital improvement projects approved in the Capital Improvement Plan. The funds are primarily used for maintaining the City’s existing buildings and infrastructure. City Council has adopted a policy of increasing the capital improvement levy as debt service levies expire to have sustainable resources to maintain the City’s assets. As such, the CIP levy is expected to increase by $400,000 in 2026 and by an additional $600,000 in 2028. •Equipment Levy – The equipment replacement levy is projected to increase five percent each year to cover the escalating costs of replacing the general fund equipment, including police cars, snowplows and ambulances. •Street Special Levy – Prior to 2022, the City assessed property owners for the cost of street reconstruction. 2022 marked the first year in a 16-year transition from special assessments to tax levy to fund street reconstruction. As such, this levy is expected to increase an average of five percent in each of the next 14 years. •Special Park Improvement Levy – Established in 2023, this levy funds playground equipment replacement and park and recreation facility improvements. Expenses Salary & Benefits are projected to increase annually by five percent. This assumption is based on a five-year historical average and includes new positions, market rate adjustments, annual progression (i.e., step increases) and benefit cost increases. Contractual Services is projected to increase at an annual rate of seven percent, which is based on a five-year historical average. Commodities are projected to increase one percent each year based on the five-year history. Tax Base Cities in Minnesota have a tax capacity macro-system that is used when setting the property tax levy for City budgets. This means that the tax rate is established by taking the total property tax payable for a given year and dividing it by the city’s taxable valuation base. Each property’s payable taxes is then calculated by multiplying the tax rate against the individual parcel’s estimated market value. Below are the growth projections for property values in the City of Edina over the next 10 years. 44 Assessed valuation is assumed to increase at 3.77 percent annually based on the average change over the past 23 years, excluding improvements. Median Value Home is assumed to increase 2.5 percent annually based on the historical average change per year but tempered by the market reports that the rate of market increases is slowing down. Tax Levy Projection The model includes our biennial budget and projections for the following eight years, for a total outlook of 10 years. Based on the above assumptions, the annual tax levy increase is expected at approximately seven percent. The projection will be reviewed annually for changes to assumptions. 45 46 City of Edina Employees 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 43 percent of the consolidated operating budget, which excludes capital outlay, and is over $60 million per year. According to a Quality of Life survey conducted in 2023, 87% of Edina residents rated the overall quality of services provided by the City as “excellent” or “good.” The full-time employee count is budgeted to increase by 15 in the 2024-2025 biennium. These new positions include paramedic firefighters, patrol officers, a police mental health investigator, a police neighborhood engagement officer, program and facility coordinators, and a utility supervisor. In addition to full-time staff, the City employs a significant number of part-time employees, including many on a seasonal basis. The total number of City employees is changes throughout the year, with the peak in June. Over the course of a typical year, the City will employ about 1,000 people. The table on the next page shows the budgeted full-time employees by fiscal year, grouped first by department then by fund. 47 Budgeted Full-Time Employees by Fiscal Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2024/2025 Administration 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8.00 8.00 8/8 General Fund 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8.00 8.00 Information Technology 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9.00 9.00 9/9 Internal Services 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9.00 9.00 Communications 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7/7 General Fund 6.00 6.00 6.00 6.00 6.80 6.80 7.00 7.00 7.00 7.00 Internal Services - - - - 0.20 0.20 - - - - Community Development 13.00 13.00 13.00 13.00 13.00 13.00 14.00 14.00 14.00 14.00 14/14 General Fund 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00 13.00 13.00 HRA Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Engineering 15.10 15.10 16.10 16.10 26.00 27.00 26.00 27.00 27.00 27.00 27/27 General Fund 11.00 11.00 12.00 12.00 17.30 17.30 15.00 15.00 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 1.35 1.35 1.00 1.00 1.00 1.00 CAS Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Construction Fund 1.10 1.10 1.10 1.10 1.00 1.00 - - - - Internal Services - - - - 4.35 5.35 8.00 8.00 8.00 8.00 Finance 6.00 6.00 7.00 7.00 7.00 8.00 9.00 10.00 10.00 10.00 10/10 General Fund 5.00 5.00 6.00 6.00 6.00 6.00 7.00 8.00 8.00 8.00 Utilities Fund 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 Fire 46.35 46.35 46.25 50.25 65.00 65.00 71.00 73.00 73.00 79.00 73/79 General Fund 45.90 45.90 45.80 49.80 63.35 63.35 69.55 71.55 71.55 77.55 Utilities Fund 0.45 0.45 0.45 0.45 1.65 1.65 1.45 1.45 1.45 1.45 Human Resources 5.00 5.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00 6/6 General Fund 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00 Internal Services - - - - 1.00 1.00 1.00 1.00 1.00 1.00 Parks & Recreation 60.50 60.50 63.95 63.95 65.00 66.00 64.92 66.00 67.00 68.00 67/68 General Fund 25.05 25.05 25.30 25.30 24.65 24.65 24.00 25.00 25.50 26.00 Aquatic Center 0.60 0.60 0.70 0.70 0.73 0.73 1.03 1.03 1.05 1.08 Golf Course 8.05 8.05 9.00 9.00 11.18 11.18 12.18 12.18 12.35 12.53 Arena 4.85 4.85 6.25 6.25 6.03 6.03 6.58 7.08 7.15 7.23 Sports Dome 0.15 0.15 1.00 1.00 1.08 1.08 0.03 0.03 0.03 0.03 Art Center 2.00 2.00 2.00 2.00 2.08 2.08 1.08 1.08 1.08 1.08 Edinborough Park 5.80 5.80 5.65 5.65 5.75 5.75 5.50 5.10 5.20 5.30 Centennial Lakes 5.00 5.00 5.05 5.05 5.03 5.03 5.03 5.03 5.05 5.08 Liquor Fund 9.00 9.00 9.00 9.00 8.50 9.50 9.50 9.50 9.60 9.70 Police Protection 72.55 72.55 76.55 76.55 77.00 78.00 78.00 80.00 84.00 86.00 84/86 General Fund 72.55 72.55 76.55 76.55 77.00 78.00 78.00 80.00 84.00 86.00 Public Works 52.50 52.50 52.15 52.15 45.00 46.00 47.00 49.00 49.00 50.00 49/50 General Fund 25.40 25.40 23.30 23.30 18.60 18.60 25.00 26.00 26.00 26.00 Utilities Fund 16.85 16.85 18.65 18.65 19.05 20.05 15.00 16.00 16.00 17.00 Internal Services 10.25 10.25 10.20 10.20 6.60 6.60 7.00 7.00 7.00 7.00 General Fund - Park Maintenance - - - - 0.55 0.55 - - - - Parks & Recreation Enterprise Funds - - - - 0.20 0.20 - - - - Total 287.00 287.00 297.00 301.00 324.00 330.00 339.92 349.00 354.00 364.00 354/364 48 Capital Improvement Plan The Capital Improvement Plan (CIP) is 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, costs and sources of revenues to pay for higher-priority projects. The 2023-2028 CIP was adopted in 2022 and can be found on the City’s website. The following are legal and financial constraints that guide the development of the CIP: •The City’s threshold for projects or equipment to be included in the CIP is $20,000. Projects or equipment expected to be under the threshold are part of the operating budget. •The definition of capital assets differs for financial accounting purposes. The main difference is that the CIP may include maintenance expenditures that do not meet the GAAP definition of a capital asset. •The preparation of a long-range plan requires City staff to make material estimates about project scope, costs of labor and materials, future interest rates and other items. Many times these estimates come from staff experience, projections published in other sources, vendor estimates, or a combination of several sources. Generally, the estimates for earlier years are more precise than later years. Actual results can differ significantly from such estimates. Projects have been presented based on those projects with planned funding. Beginning with the prior CIP, 2021-2026, the City implemented a formal departmental scoring process that standardizes priorities across departments. The departmental scoring is high, medium, low, defined as: •High – Critical •Medium – Important, can be pursued as funding is available •Low – Can wait Additionally, an asset preservation project was created to address immediate facility repair needs. Facility projects will be evaluated semi-annually with the following factors taken into consideration for prioritization: •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 avoid a decline in service. 49 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 most recent CIP process: April 2022 Finance reviews the CIP process with department leaders. Division leaders submit proposed, prioritized projects. Finance staff and City Manager reviews projects for funding. June 2022 Draft CIP presented to department leaders, with department leadership providing feedback. CIP process and draft city manager recommended CIP presented to City Council. July 2022 Draft 2023-2028 CIP and 2023 Operating Budget reviewed by Council. August 2022 Draft 2023-2028 CIP and 2023 Operating Budget reviewed by Council. September 2022 Council adopts preliminary 2023 levy. October 2022 Draft 2023-2028 CIP and 2023 Operating Budget reviewed by Council. December 2022 Public hearing held on 2023-2028 CIP and 2023 Operating Budget. Council adopts 2023-2029 CIP and 2023 operating budget. 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. The following chart compares 2024 and 2025 CIP by expenditure type. The 2024 CIP totals $68 million, while the 2025 CIP totals $40 million. 50 Significant recurring projects include street reconstruction, pedestrian/bike improvements and equipment replacement. Street reconstruction — Projects total $24.82 million and $16.65 million in 2024 and 2025, respectively, and are funded principally through the special street improvement levy, special assessments and utility fees. Significant projects for 2024-25 are along 50th Street, in the Presidents neighborhood, Southdale, and Concord. Pedestrian/bike improvements — Projects total $1.6 million and $131,000 for 2024 and 2025, respectively, and are funded primarily through the City’s Pedestrian and Cyclist Safety (PACS) Fund. Pedestrian/bike improvement projects for 2024-25 include West 66th Street shared-use path, Vernon Avenue sidewalk, Concord Avenue shared-use path and Valleyview Road sidewalk and bicycle lane. Where possible, these improvements align with street reconstruction. Equipment replacement — Approximately $4.8 million and $6.4 million of equipment is expected to be replaced in 2024 and 2025 respectively. 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. Park and Recreational Facility Improvements — Edina voters approved a half-percent sales tax to fund $17.7 million to restore and improve Fred Richards Park, $8.1 million to improve Braemar Park and $31.7 million to expand Braemar Arena. These projects are in the early planning stages and will develop through the next biennium. 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 2024-25 Capital Plan funds $4.2 million, $2.3 million in 2024 and $1.9 million in 2025, for facility improvements to City Hall, liquor stores, facility efficiency upgrades and recreation facility upgrades is funded through the Construction Fund, the Liquor fund, the Aquatic Center 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 2024-25 operating budget helps to accomplish that. $42,639,895 $19,418,800 $110,000 $5,254,740 $- $560,000 $50,000 $25,377,084 $7,547,600 $35,000 $6,771,500 $500,000 $185,000 $- $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 Infrastructure Buildings Technology Equipment and Vehicles Land Parks Unassigned 2024 and 2025 CIP by Expenditure Type 2024 2025 51 Fire Station 2 — For several years, the Edina Fire Department has been responding to an increasing number of emergency medical calls for service. The area of town with the greatest growth and concentration of medical calls is the southeast quadrant of the city, south of the Crosstown and east of Minnesota Highway 100. On May 4, 2022, City Council gave approval for the City to enter into a purchase agreement for the property at 4401 West 76th Street for the purposes of building a new fire station. City Council authorized financing for up to $39 million of general obligation bonds for the land acquisition and construction of the fire station project. In 2024, $17 million is allocated for construction of the Center, and in 2025, five million dollars is allocated for installation and maintenance. Other costs include planning and design. This project can be found in the CIP (Project FIR21008). TH100 Diverging Diamond — The Vernon Avenue bridge over Minnesota Highway 100 carries a divided four-lane roadway with a sidewalk on the north side meant to serve pedestrians and cyclists. Over 22,000 vehicles travel over this bridge daily, which is projected to increase to 24,000 vehicles per day by 2040. The size of the sidewalk and the lack of separation from heavy traffic make this bridge uncomfortable for many pedestrians, creating a significant barrier within the Grandview commercial district. Additionally, the interchange with Minnesota Highway 100 is a complicated and redundant system of six unique access ramps that connect to four different streets within the district. This project will reconfigure the Vernon Avenue bridge and reconstruct the on- and off-ramps to create a diverging diamond interchange (DDI). This project involves the reconstruction of 50th Street from Grange Road to east of Dale Street. The project was discussed as part of the 4917 Eden Avenue redevelopment project. It will install traffic safety improvements. This includes replacing the entire pavement surface, repair/replacement of curb and gutter, upgrading public utilities (watermain, sanitary sewer, and storm sewer) and pedestrian and traffic facility improvements. $750,000 was budgeted for construction in 2023, the majority of construction funding coming in 2024 with $5.8 million. Funding sources include municipal state aid (MSA) and grants. This project can be found in the CIP (Project ENG23041). Sanitary Trunk Capacity Expansion — This project will meet increasing sewer capacity needs in southeast Edina by extending the York Avenue sanitary sewer trunk line. The project follows the Southeast Edina Sanitary Sewer Study, from Barr Engineering in 2017. The project builds off previous sanitary sewer capacity projects in 2017 and 2020. The project area includes York Avenue north of the Promenade. $3.5 million is budgeted for construction in 2024 and 2025. The project can be found in the CIP (Project 19-335). 52 This page intentionally left blank. 53 This page intentionally left blank. 54 Strong Foundation Reliable Service Livable City Better Together Departments 55 Department Overview The City has 11 departments, displayed below in the organizational chart. Edina is organized into six “operating” departments and four “supporting” departments, along with an Administration department. The departments in red are operating departments and the departments in green are 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 citywide initiatives, coordinate resources across departments, and help departments meet their service goals in alignment with organizational strategy. The following pages include more detail about each department including major priorities, the 2022-2023 and 2024-2025 financial information, factors influencing this budget, an organizational chart, and goals and performance measures. The top of each department page includes the percent of the 2024 consolidated budget represented by each department. The City is developing a new performance measurement system to increase transparency and effectiveness; the measures displayed in this book are based on previous budget’s performance measures. The goals and performance measures of all departments can be categorized by budget pillar, indicated by the icons below. For more information on the budget pillars, see pages 16-19 of this book or edinamn.gov/1431/City-Goals. Community Development Engineering Fire Parks & Recreation Police Public Works Assistant City Manager City Manager Administration Information Technology Finance Human Resources Communications Strong Foundation Reliable Service Livable City Better Together 56 In the following department pages, the 2024-2025 budget table will often reference types of expenditure from major funds. These expenditure types are defined below: Personnel services – includes salaries and benefits for employees. Benefits include health insurance and workers’ compensation costs. These costs increased in the 2024-2025 due to the addition of new positions, market wage adjustments, benefit cost increase, and workers’ compensation insurance increases. Capital outlay – are expenditures for construction, acquisition or improvement of capital assets. Examples include land, buildings, building improvements, vehicles and equipment. The 2024-2025 includes the budgeted use of cash for the purchase of capital outlay as outlined in the 2023-2028 Capital Improvement Plan (CIP). Commodities – are expendable goods that are consumable or have a short life span. Examples include office supplies, gasoline, minor equipment, and road salt. Contractual services – are services the City contracts for from private firms, individuals or other government entities. Examples include rental agreements, maintenance agreements, consulting services and more. Contributions & Transfers – these track the movement of money from one fund to another. Internal services – are central administrative costs allocated to each department based on metrics, such as number of employees, number of IT devices, occupied office square footage, etc. The expenses allocated from the internal service funds include: property and liability insurance; IT services, security and equipment; building operations and maintenance; and equipment repair and maintenance. 57 Administration Led by: Assistant City Manager 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $1,354,199 $1,510,199 $1,580,285 $1,671,988 Contractual services 922,180 1,111,290 1,190,020 1,141,110 Commodities 47,770 91,500 100,000 86,500 Internal services 157,787 161,927 239,760 254,940 Total $2,481,936 $2,874,916 $3,110,065 $3,154,538 Other Funds Construction -66,000 450,000 275,000 Department Total $2,481,936 $2,940,916 $3,560,065 $3,429,538 Factors Affecting the Budget 2024-25 Expenditures by Type The department is responsible for conducting the 2024 general election, which is part of the 15 percent increase in contractual services from the previous budget cycle. Also included in this increase is the addition of performance management software. Charges for internal services increased to cover increased technology and facilities costs. Construction costs increased due to safety and security updates and storage space construction for election equipment. Inflation remains a factor in budget projections. Personnel services 52%Contractual services 37% Commodities 3% Internal services 8% The Administration Department provides support to the City Council and leads initiatives with citywide impacts. Responsibilities include strategic planning, performance management, building intergovernmental partnerships, facilitating boards and commissions, ensuring effective community engagement and advancing race and equity initiatives. The Department oversees elections administration, business and liquor licenses, and records management. Department work aids the effectiveness, transparency and inclusivity of City efforts. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 58 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Administration’s goals for 2024: •Develop citywide performance dashboard for public reporting. •Research and select new agenda management software. •Create policy for complaint-based code enforcement. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of residents rating City government as “excellent” or “good” on valuing/respecting residents from diverse backgrounds. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 57% 58% All Percent of residents who feel they could have a say about the way things are run in the community. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 62% 58% All Percent of board and commission members who identify as a race other than white. Staff collects self-reported demographic data on the race, gender, age, LGBTQ identity, disability status, education, rent or ownership status, and other information, of the City’s advisory board and commission members. Data is collected biannually, with the prior year measurement from 2021. 15.91% 10.81% Community Engagement Number of unique participants on the City’s online engagement and public participation platform, BetterTogetherEdina.org. The prior year is 2022, current year is 2023. 707 1,474 All City Clerk Division Records management Elections administration Licensing Race & Equity Division Training Work plan development Community Engagement Division Boards and commissions Engagement Volunteers Table of Contents 59 Communications Led by: Communications Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $898,880 $1,027,749 $1,049,381 $1,117,645 Contractual services 437,132 397,870 397,930 449,718 Commodities 23,351 61,000 34,500 34,500 Internal Services 115,515 118,586 179,304 191,304 Total $1,474,879 $1,605,205 $1,661,115 $1,793,167 Other Funds Construction 34,069 113,000 45,000 260,000 Department Total $1,508,948 $1,718,205 $1,706,115 $2,053,167 Factors Affecting the Budget 2024-25 General Fund Expenditures by Type About Town, first published as a quarterly magazine in 1990, has been reintroduced as an annual report without advertisements. Print and postage costs for it and the monthly newsletter Edition: Edina have significantly increased since the last biennium. As more residents switch from cable television to streaming services, cable franchise fees decrease. The 2025 budget includes administration of a Quality of Life Survey to be conducted by Polco. Personnel Services 63% Contractual services 24% Commodities 2%Internal Services 11% The Communications Department plays a vital role meeting other departments' communication needs. The Department identifies key information to be conveyed to Edina's diverse audiences and ensures effective delivery. The Department reaches the community through advertising, marketing, video production, website development, social media, and public relations. Print publications, such as Edition Edina, inform residents about important updates and events. The Department enhances transparency and fosters a well-informed and connected community. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 60 Department Organization & Performance Organization Chart & Functions The Communications Department does not have divisions. Primary work functions of the department are displayed, along with some of the examples of the work. Goals & Performance Measurement Departments develop one-year goals. The following are a selection of Communications’ goals for 2024. •Develop and implement a strategic plan for the City's general social media based on 2023 audit. •Update three-year strategic communications plan. •Develop communications and marketing plan for implementation of carryout bag ordinance. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of residents rating public information sources/communication from the City as “excellent” or “good.” This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 80% 76% All Percent of residents rating Edition: Edina monthly newsletter as a major source of information about Edina government and its activities. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 44% 47% All Percent of residents rating the City’s website, EdinaMN.gov, as a major source of information about Edina government and its activities. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 24% 20% All Publications Edition: Edina About Town Public Works Pipleline Video Production Meeting production Original programming Websites & Online Communication EdinaMN.gov Social media Marketing & Advertising Plans Commercials Advertisements Media & Public Relations Press releases Media training Emergency communication Table of Contents 61 The Finance Department oversees the financial activities of the City, Housing & Redevelopment Authority, South Metro Public Safety Training Facility, and other organizations. The Department handles accounting, revenue collections, investments, utility billing and vendor payments. The Department also leads strategy for debt management, budgeting and capital planning. This work, along with extensive reporting, ensures prudent stewardship of City resources to support sustainable growth. Finance Led by: Finance Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $919,037 $948,268 $1,303,938 $1,134,413 Contractual services 1,068,552 313,218 853,070 646,070 Commodities 126,275 15,000 16,500 16,500 Capital Outlay 281,557 -374,554 - Contributions & Transfers 750,482 -200,000 350,000 Internal services 74,397 74,520 96,072 102,060 Total $3,220,300 $1,351,006 $2,844,134 $2,249,043 Other Funds Construction 700,892 - - - Utility 1,185,610 875,363 776,045 800,119 Department Total $5,106,801 $2,226,369 $3,620,179 $3,049,162 Factors Affecting the Budget 2024-25 General Fund Expenditures by Type The Department added one financial analyst position in 2022, which was not included in the 2022-2023 budget, but is budgeted in 2024-2025. $216,553 of the personnel services budget in 2024 is for citywide one-time adjustments to the assigned steps or salary range of specific positions needed to address a specific current market condition. The Finance budget includes $947,384 in 2024 and $360,830 in 2025 of federal ARPA spending pursuant to the ARPA spending plan approved by City Council. The 2024-2025 Contributions & Transfers are general fund transfers for operational support to Centennial Lakes Park. Personnel services 48%Contractual services 29% Commodities 1% Capital Outlay 7% Contributions & Transfers 11% Internal services 4% full-time employees 2024 department budget 2024 of the 2024 consolidated budget Table of Contents 62 Department Organization & Performance Organization Chart & Functions The Finance Department does not have divisions. Primary work functions of the department are displayed. Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Finance’s goals for 2024. •Develop the 2025-2029 Capital Improvement Plan. •Implement enterprise system process improvements. •Develop and review policies on safe electronic payment and financial management. Performance Measure Description Budget Pillar Prior Year Current Year Division Independent bond-agencies’ rating. Bond agencies evaluate the City’s ability to make debt payments and their risk of default. A triple A bond rating is the highest rating possible and indicates financial strength; it enables the City to undergo needed capital improvements with the lowest interest cost possible to taxpayers. The prior year is 2021; the current year is 2022. AAA/Aaa AAA/Aaa All Audit opinion findings. The City’s financial statements are audited annually by an external certified public accounting firm. Findings indicate material weakness, where an internal control is ineffective. The City strives for as few findings as possible. The prior year is 2021, the current year is 2022. 0 3 All Number of high-water read letters issued. Utility Billing staff alert customers if their water usage levels are abnormally high, to quickly identify wasteful and costly water leaks. In May 2023, the City switched utility billing systems, contributing to the decrease. Staff is working on system reporting improvements to notify customers of high-water usage. The prior year is 2022; the current year is 2023. 241 37 Utility Billing Utility Billing Residential and business billing for water, wastewater and stormwater utilities Financial Administration & Accounting Accounts Payable Tax Compliance Revenue Collections Debt Administration Financial Strategy Budget development Capital Improvement Plan Financial reporting Table of Contents 63 Human Resources Led by: Human Resources Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $1,424,369 $1,228,444 $1,506,209 $1,557,469 Contractual services 170,108 214,220 220,320 209,760 Commodities 3,919 28,100 36,500 36,600 Internal services 60,773 62,274 69,348 73,800 Total $1,659,169 $1,533,038 $1,832,377 $1,877,629 Other Funds Risk Management 2,197,481 1,108,061 2,728,628 2,916,510 Department Total $3,856,650 $2,641,099 $4,561,005 $4,794,139 Factors Affecting the Budget 2024-25 General Fund Expenditure by Type Employee salaries continue to increase in relation to the current job market. Recruitment of new employees has become increasingly difficult, especially for certain jobs across the City. We will continue to look for new and innovative ideas to attract qualified candidates. The Department added a part-time position in 2023 to assist with recruitment and other HR initiatives, increasing the personnel services budget. Increases in expenditures for the risk management fund include increased workers’ compensation insurance costs and claims. Training and development will be a major focus areas in 2024-2025. Personnel services 82%Contractual services 12% Commodities 2% Internal services 4% The Human Resources Department collaborates with other City departments to foster a supportive and productive work environment. The Department does so by hiring top talent, developing cost-effective and attractive compensation and benefit plans, developing employment policies, mitigating risk and ensuring compliance with employment laws. Staff also provides leadership and employee development training and leads employee and labor relations. The Department strives to create a productive work environment aligned with City goals. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 64 Department Organization & Performance Organization Chart & Functions The Human Resources Department does not have divisions. Primary work functions of the department are displayed. Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Human Resource’s goals for 2024. •Develop and provide a three-part series of supervisor training to all supervisory employees. •Procure and implement a learning management system software. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of employees retained per year. Employee retention, excluding retirement, gives insight into the stability of the organization. There is no target for the retention rate, as it is influenced by internal and external factors, but hiring new employees requires significant time and costs. 90% 89% All Number of seasonal employees hired in the previous year. The City hires a large number of seasonal employees to support operations including the Aquatic Center and Parks Maintenance. Recruiting, hiring, and onboarding these employees is a continual process that ensures the continuity of operations. 318 378 All Workers’ compensation claims resulting in lost time or medical treatment. This metric is otherwise known as an OSHA recordable injury. 26 24 Risk Management General HR Adminsitration Benefits and compensation Payroll Recruitment Employee Relations Labor relations Employee policies Training Performance management Risk Safety Risk management 65 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget Internal Service Fund Personnel services $1,095,468 $1,345,498 $1,355,583 $1,431,448 Contractual services 802,707 870,300 1,299,460 1,422,720 Commodities 175,548 25,000 205,000 220,000 Total $2,073,723 $2,240,798 $2,860,043 $3,074,168 Other Funds Construction 243,545 30,000 405,000 485,000 Total $ 2,317,269 $ 2,270,798 $ 3,265,043 $ 3,559,168 Factors Affecting the Budget 2024-25 Internal Service Fund Expenditures by Type Increases in contractual services for 2024 and 2025 are driven by moving Enterprise Resource Planning software to a vendor hosted solution, network infrastructure improvements, management and security software and increases in the number and cost of software licenses citywide. The increase in commodities is due in part to a change in account codes, an increase in the cost of hardware and a change in accounting for equipment purchases for new positions. Personnel services 47%Contractual services 46% Commodities 7% Information Technology full-time employees 2024 department budget 2024 of the 2024 consolidated budget The I.T. Department facilitates convenient, secure and efficient access to information and services. The Department provides essential technology services to City departments, offices and facilities. This includes managing data center operations, offering and administering network and telecommunications services, providing end-user support and integrating Geographic Information System (GIS) into department work. The Department directs strategic information and technology services to improve service delivery to City staff and the community. Led by: Information Technology Director 66 Department Organization & Performance Organization Chart & Functions The I.T. Department does not have divisions. Primary work functions of the department are displayed. Goals & Performance Measurement Departments develop one-year goals, the following are a selection of I.T.’s goals for 2024. •Improve 50th & France video surveillance capabilities, increase number of City video cameras in public areas. •Develop WebApp brand standards. •Update policies including the conference room use policy and the I.T. policy. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of time internal networks and servers were up. This measure excludes planned maintenance. Unplanned downtime can disrupt City operations. 99.996% 99.997% All Percent satisfaction with IT support services. The Department offers a survey for all instances of I.T. support, with the responded asked if they are satisfied or unsatisfied. The Department provides I.T. support to all City operations. 99.4% 99.6% All Percent of full-time staff completing cyber security training. Staff undergo regular cybersecurity training as a preventative measure. 100% 100% All GIS Governance Web mapping Geodata storage & administration Infrastructure Support Network Fiber optic Storage Phone system End User Support PCs Tablets Smart phones Point of sale Security Systems Hardware Software Physical security Surveillance cameras 67 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $1,470,371 $1,710,136 $1,956,016 $2,077,387 Contractual services 908,922 517,010 348,730 356,000 Commodities 4,761 7,000 11,500 12,500 Internal services 150,804 154,675 202,812 215,124 Total $2,534,858 $2,388,821 $2,519,058 $2,661,011 Other Funds Construction 199,405 - - - Special Revenue 154,092 135,000 150,000 170,000 Department Total $2,888,356 $2,523,821 $2,669,058 $2,831,011 Factors Affecting the Budget 2024-2025 Expenditures by Function Increases in contractual services include an audit of the zoning ordinance, consulting assistance for a potential zoning ordinance update, hiring a planning consultant to assist in the creation of a small area plan for the Lincoln/Londonderry area, an increase in consulting fees including a new heritage preservation consultant, assistance from the consultant to revise the City’s zoning ordinance regarding heritage preservation and the plan of treatment, and an appraisal for Southdale. Increases in internal services and personnel services include increases for Logis due to increased costs to print and mail valuation notices, increased costs for subscriptions and continuing education for required maintenance of licenses and certifications for both planning and assessing staff. Planning 45%Assessing 49% Community Development Block Grant 6% The Community Development Department promotes the health, safety and welfare of Edina’s residents, neighborhoods and districts and preserves our historic and natural resources through orderly land use and development. The Department is responsible for planning and zoning, housing and redevelopment, including affordable housing and economic development. The Assessing Division estimates the market value and determines the classification of each piece of property in the City for property tax purposes. full-time employees 2024 department budget 2024 of the 2024 consolidated budget Community Development Led by: Director of Community Development 68 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Community Development’s goals for 2024. •Develop an Affordable Housing Funding Matrix, finalizing sustainable affordable housing sources. •Research and prepare amendments to the zoning ordinance related to cannabis uses in accordance with State law. •Update development program for 5146 Eden Avenue, including identifying developers and/or operator. •Review tax base development results based on comprehensive plan directives. •Zoning ordinance audit. •Manage the Lincoln Drive/Londonderry Small Area Plan. Performance Measure Description Budget Pillar Prior Year Current Year Division Number of affordable housing units built. Edina’s recent comprehensive plan prescribes the need for the development of 1,804 affordable housing units over 10 years. The prior year is 2022, and the current year is 2023. 77 147 Planning Total estimated market value Estimated market value (EMV) represents the normal sale price of property in a competitive open market. $15.5 B $16.8 B All Residential median direct sales ratio. This percentage indicates how closely appraised values from the Assessing Division are to the sales price of residential property. 100 percent would indicate complete accuracy. The prior year is October 2021 – Sept. 2022. The current year is October 2022 – Sept 2023. 94.4% 96.8% Assessing Assessing Division Commercial appraisal Residential appriasal Planning Division Land use & redevelopment requests Heritage Preservation Affordable Housing Economic Development 69 2024-2025 Budget The budget for all TIF districts, broken out by expenditure type, can be found on pages 105-106. 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget Special Revenue Fund Personnel services $199,346 $207,455 $172,868 $182,088 Contractual services 6,890,245 2,197,470 6,099,640 8,069,640 Commodities 256 3,000 300 300 Capital Outlay 4,066,359 -450,000 2,550,000 Internal services 10,000 472,250 - - Contributions & Transfers 9,507,954 - - - Department Total $20,674,159 $2,880,175 $6,722,808 $10,802,028 Factors Affecting the Budget 2024 Total Expenditures by District The HRA reimburses some developments for the cost of public benefits delivered. The incremental property taxes generated from those projects are the source of repayment. Repayment does not come from the general levy. In 2024/2025 reimbursement payments are anticipated for several completed projects. Debt service and payment for completed and in-progress public infrastructure work is also anticipated from the Centennial Lakes, Grandview 2 and Eden/Willson TIF Districts. Funding for new affordable housing projects is anticipated from the Southdale 2 TIF District. Centennial TIF 9% Southdal e 2 TIF 43% Pentagon Park TIF 2% 50th and France 2 TIF 12% 44th and France 2 TIF 5% W 76th Street TIF 1% Eden Wilson TIF 28% The City established the Edina Housing and Redevelopment Authority (HRA) in 1974 to lead and support redevelopment efforts and to support delivery of affordable housing in Edina. The HRA has used its taxing authority as well as Tax Increment Financing (TIF) and other financing tools to achieve progress toward these goals. City council members serve as commissioners of the board of the HRA. The mayor and city manager traditionally serve as the chair and executive director, respectively. The HRA has no dedicated employees; instead, the HRA hires consultants, as needed, and City staff supports the HRA as part of their regular job duties. department budget 2024 Housing & Redevelopment Authority 70 71 This page intentionally left blank. Engineering Led by: Director of Engineering 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $1,902,547 $2,294,721 $2,776,610 $2,951,330 Contractual services 1,148,764 1,157,660 1,535,410 1,552,140 Commodities 76,144 118,500 92,700 95,700 Internal services 273,789 279,978 458,340 482,136 Total $3,401,244 $3,850,859 $4,863,060 $5,081,306 Other Funds Construction 10,717,051 12,273,836 15,192,104 8,847,838 Utility (398,445) 1,297,205 903,561 903,914 Facilities Management 1,460,929 1,399,636 1,417,242 1,478,503 Special Revenue 1,461,188 1,993,612 3,273,544 1,994,874 Department Total $16,641,967 $20,815,148 $25,649,511 18,306,435 Factors Affecting the Budget 2024-25 Engineering Operating Expenditures Personnel services increases include adding a sustainability specialist position in 2023 and moving four staff positions into the electrical union. These changes provide more sustainability-related grant applications and education and provide better electrical and HVAC services to our facilities and street light systems. The department increased contractual services related to street light repair and maintenance and centralized some facility-related services such as garbage collection and fire suppression systems. This will allow for efficiencies in common services within different facilities and provide more budget to keep streetlights functioning properly. Engineering Services & Admin 43% Facilities 22% Pedestrian and Cyclist Safety 14% Conservation & Sustainability 12% Utilities 9% The Engineering Department oversees the City's infrastructure planning, design, and construction, including sidewalks, bikeways, local and Municipal State Aid (MSA) street systems, storm sewers and more. Staff ensures projects meet design standards and engineering requirements, prioritizing safety and functionality. The Department leads sustainability initiatives and works to maintain all City assets and facilities. This work ensures the City's infrastructure meets community needs now and in the future. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 72 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals; the following are a selection of Engineering’s goals for 2024. •Start construction phases of new Fire Station 2. •Begin Whole Home Electrification Federal Pilot Project. •Implement York Avenue sanitary sewer trunk capacity expansion. •Begin Active Routes to Schools audits for all Edina elementary and middle schools. •Implement the 2024 Neighborhood Roadway Construction Projects: Concord B/C and Southdale. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of the City’s Climate Action Plan (CAP) started or completed. The City adopted its CAP in 2021, with over 200 actions to complete. More information and all climate actions can be found in the City’s progress portal. The prior year is 2022, and the current year is 2023. -32%Sustainability Average pavement condition index (PCI). The Pavement Condition Index (PCI) is a measure of damage to the pavement surface. 100 indicates a new street; good rating range from 75 to 100, and fair ratings from 45 to 74. Each year, the City inventories one quarter of the streets. The department identifies roadways for reconstruction and designs and manages the street reconstruction. The prior year is 2022, and the current year is 2023. 78 78 Design & Construction Facility condition index. The City uses a National Recognized Asset Management Standard to rate its 80+ buildings on separate systems like roofing, electrical, finishes like paint and carpet. The systems are ranked based on age, visual inspections, and life expectancy for similar systems in the region it resides. Data is updated after major renovations or repairs and is generally reviewed 1-2x per year. The FCI Scale goes from 0 to 1.0 is a brand-new building or system and 1 is a deteriorated structure. This is an average Facilities Condition Index (FCI) for all systems and buildings in the portfolio. The prior year is 2022, and the current year is 2023. 0.34 0.38 Facilities Facilities Maintain public facilities Electrical/HVAC work Design & Construction Street reconstruction design & inspection Utility infrastructure rehabilitation Transportation Pedestrian & cyclist planning Liaison to Tranportation Commission Engineering Services Managing right-of- way & permits Water resources planning Sustainability Deliver Climate Action Plan Liaison to Energy & Environment Commission 73 Performance Measure Description Budget Pillar Prior Year Current Year Division Miles of non-motorized transportation facilities added. Non-motorized transportation facilities include biking and pedestrian pathways. The City currently has 117.6 miles of these facilities and tends to add more during street reconstruction. The prior year is 2022, and the current year is 2023. 0.7 mi 4.4 mi Transportation 74 This page intentionally left blank. 75 Fire Led by: Fire Chief 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $9,218,807 $10,849,057 $11,206,513 $12,585,287 Contractual services 1,349,052 1,428,076 1,601,147 1,709,596 Commodities 296,466 379,090 417,088 437,794 Internal Services 806,067 827,523 874,884 925,392 Capital Outlay 17,313 - - - Total $11,687,705 $13,483,746 $14,099,632 $15,658,069 Other Funds MN Task Force & Training Facility 1,969,568 1,821,769 2,913,550 2,942,740 Special Revenue - - 29,314 34,622 Construction 15,793,237 709,250 1,156,125 3,077,250 Utility 1,726,455 1,771,465 1,807,247 1,818,081 Department Total $31,176,965 $17,786,230 $20,005,868 $23,530,762 2024 Total Expenditures by Function Factors Affecting the Budget The department is contracting with service vendors for essential EMS and Fire equipment repair and maintenance to ensure all ambulance and fire equipment remain in service and available. Annual agreements include parts and service inflation, resulting in a 20 percent increase in contractual services from the previous budget cycle. Charges for internal services increased to cover increased technology costs and response needs, including Computer Aided Dispatch. Inflation remains a factor in budget projections. Fire General Operations 48% Inspections 15%Public Health 6% Equipment Replacement 10% Recycling 8% MN Task Force 1 1% Public Safety Training Facility 12% The Fire Department enforces building and fire codes, conducts life-safety inspections, provides fire suppression, Advanced Life Support (ALS) ambulance response, technical rescue and public health services, including inspections and organics programs. The Department manages the South Metro Public Training Facility (SMPTF), offering high-quality and cost-effective training and development The Department's work helps build a safe, resilient, and prepared community. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 76 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop 1-year goals, the following are a selection of Fire Department goals for 2024. •Begin construction of new Station 2 facility. •Identify Station 3 site location near City Hall to better serve the northeast quadrant of the city. •Complete construction and commissioning of Tactical Building expansion. •Identify PIMS software replacement. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of residents rating fire services as "Excellent" or "Good." This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 98% 99% Operations Training & Safety Percent of residents who feel very safe or somewhat safe in the city. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 89% 93% Operations Training & Safety Total EMS calls. The prior year is 2022; the current year is 2023. 5,778 5,627 Operations Training & Safety Total Fire calls. The prior year is 2022; the current year is 2023. 1,464 1,593 Operations Training & Safety Total number of food, pool, and lodging inspections conducted by staff. The public health division conducts inspections primarily on a complaint basis. The division transitioned to a new software in 2023 and some test inspections are included in the 2023, current year numbers. 345 422 Public Health Fire Operations Fire suppression ALS ambulance Technical rescue (MNTF-1) Training Fire Inspections Public education Commercial Inspections Community risk reduction Life safety inspections South Metro Public Safety Training Facility Operations Fiscal agent Management Building Inspections Building permits Residential redevelopment Public Health Food, lodging, pool and rental inspections Recycling and Organics Liaison to Community Health Commission 77 Performance Measure Description Budget Pillar Prior Year Current Year Division Tons of organics collected. The prior year is 2022; the current year is 2023. 1,218.4 980.5 Public Health 78 This page intentionally left blank. 79 Parks & Recreation Led by: Parks & Recreation Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $3,788,175 $4,175,349 $4,671,131 $5,033,727 Contractual services 1,712,947 1,698,498 1,973,030 2,019,430 Commodities 350,569 433,151 447,900 454,300 Internal services 595,204 607,969 702,516 738,264 Total $6,446,896 $6,914,967 $7,794,577 $8,245,721 Other Funds Enterprise 29,124,412 30,451,336 29,273,675 31,260,508 Construction 496,130 1,641,325 5,240,102 8,886,200 Special Revenue 382 1,000 1,000 1,000 Department Total $36,067,820 $39,008,628 $42,309,354 $48,393,429 Factors Affecting the Budget 2024-25 General Fund Expenditures by Type Increases to the construction budget reflect the Braemar Park and Fred Richards Park master plan implementation funded by the local option sales tax approved via referendum. Personnel services includes all department staffing costs, including full-time, part-time and seasonal staff across the entire department. Personnel services 60% Contractual services 25% Commodities 6% Internal services 9% The Parks & Recreation Department administers and maintains the entire parks system, including 45 parks and open spaces that total 1,563 acres of property. The Department coordinates park maintenance, adaptive recreation, adult and youth recreation, works with 14 athletic associations and liaises to the Arts & Culture Commission and the Parks & Recreation Commission. Details on the department’s Park Enterprises is available on page 82. full-time employees 2024 department budget 2024 of the 2024 consolidated budget 80 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals; the following are a selection of Parks & Recreation’s goals for 2024. •Develop a Public Art Master plan process for a comprehensive public art process that includes best practices, community priorities, design process and funding opportunities. •Assess and plan for replacement of the filter room at the Edina Aquatic Center. •Continue to work with Hennepin County on the concept of co-locating the Edina Art Center into the proposed new Southdale Library. •Continue the implementation of the Braemar Park and Fred Richards Park master plans. Performance Measure Description Budget Pillar Prior Year Current Year Division Percentage of residents who, from their experience, rate the quality of parks as “excellent” or “good” in the Quality of Life Survey. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 93% 93% Park Maintenance & Natural Resources Percentage of residents who, from their experience, rate the recreation programs and classes “excellent” or “good” in the Quality of Life Survey. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 84% 83% Programming, Enterprises Trees planted per year. The City’s Climate Action Plan has a goal of increasing tree cover from 35.9 percent to 39.5 percent by 2030. The Department maintains existing tree canopy and expands it. The prior year is 2022, current year is 2023. 1,602 1,985 Park Maintenance & Natural Resources Transfers from liquor supporting the City’s enterprise facilities and capital projects. Edina Liquor transfers a portion of its profits to park enterprises to keep those facilities and recreation opportunities accessible to more of the public. $1M $1M Liquor Park Maintenance & Natural Resources Maintain 45 Edina parks Forestry & natural resource management Programming Recreation programming Senior Center Enterprises Art Center Aquatic Center Braemar Golf Braemar Arena & Field Centennial Lakes Park Edinborough Park Edina Liquor 81 Contributions & Transfers 2% Equipment Rental 0% Cost of Sales & Services 24% Personnel Services 33% Contractual Services 13% Commodities 4% Capital Outlay 17% Internal Services 6% Int & Fiscal Charges 1% Park Enterprises Led by: Parks & Recreation Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget Enterprise Funds Art Center $338,539 $882,936 $488,066 $525,121 Braemar Golf Course 5,368,236 4,796,869 5,122,928 5,271,422 Aquatic Center 1,230,979 1,250,445 1,328,318 1,567,371 Edinborough Park 1,880,566 1,880,620 2,009,335 2,124,816 Braemar Arena 3,246,748 3,496,945 3,234,611 3,336,310 Braemar Field 944,351 942,797 442,915 466,782 Centennial Lakes 1,381,212 1,448,203 1,595,198 1,748,891 Liquor 14,733,782 15,752,521 15,052,304 16,219,795 Total $29,124,412 $30,451,336 $29,273,675 $31,260,508 All Enterprise Expenditures by Type, 2024-2025 Personnel Services $30,242,224 Cost of Sales & Services $22,024,096 Contractual Services $12,079,811 Commodities $3,429,395 Capital Outlay $15,263,648 Internal Services $5,117,820 Contributions & Transfers $2,000,000 Int & Fiscal Charges $530,787 Equipment Rental $15,000 The Parks & Recreation Department includes park enterprise facilities which provide recreation opportunities to Edina and the surrounding area. These operations’ expenses are offset by fees for service and transfers from Edina Liquor, to keep the facilities accessible to more of the community. full-time employees 2024 extended & regular part-time employees 2024 82 This page intentionally left blank. 83 Police Led by: Police Chief 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $11,531,573 $12,276,781 $14,064,512 $15,492,341 Contractual services 1,094,110 1,140,448 1,319,665 1,367,430 Commodities 165,363 129,902 160,000 165,500 Internal Services 1,564,930 1,600,848 1,743,240 1,835,556 Total $14,355,976 $15,147,979 $17,287,417 $18,860,827 Other Funds Police Seizure 11,512 - - - Special Revenue 263,353 137,000 167,500 147,500 Construction 1,043,039 809,550 1,964,050 970,000 Department Total $15,673,881 $16,094,529 $19,418,967 $19,978,327 xFactors Affecting the Budget 2024-25 Expenditures by Function In response to community growth the department will be adding five police officers and one detective specializing in mental health related cases over the next two years. Increases in operational costs include partnerships with Hennepin County to provide an embedded social worker and a Joint Community Police Partnership Liaison. Inflation and availability of goods and services also continue to be a factor in budget projections. An increase in 2024 construction funds is attributed to scheduled replacements of in-squad and body-worn camera systems and other specialized department equipment. Revenue is received through partnerships with Edina Public Schools, the City of Richfield, and through a new agreement with Southdale Center to staff Retail Crime Investigators at the mall. Police Administration 36% Dispatch 11% Patrol 45% Investigations 8% The Edina Police Department maintains public safety, enforces laws, investigates criminal activities and provides emergency medical services. The Department operates the 911 Dispatch Center which serves multiple departments and the City of Richfield. Additional work includes community engagement, crime prevention, animal control and management of police records, evidence, and property. The Department works diligently to ensure public safety and maintain a strong connection with the community. full-time employees 2024 department budget of the 2024 consolidated budget 84 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Police’s goals for 2024. •Expand recruiting and hiring efforts to continue addressing the shortfall in qualified police officer candidates, the department expects to have as many as 8-10 police officer vacancies in 2024. •Enhance employee wellness and retention programs to maintain reliable police staffing. •Develop and implement a Mental Health Alternative Response Team in partnership with the Fire Department and the City of Richfield. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of residents rating police services as “excellent” or “good.” This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 94% 92% All Percent of residents who feel very safe or somewhat safe in the city. This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 93% 89% All Number of criminal arrests The prior year is 2022; the current year is 2023. 1,038 1,085 Patrol Number of traffic violations The prior year is 2022; the current year is 2023. 4,832 6,974 Patrol Number of telephone calls answered by 911 dispatchers. The prior year is 2022; the current year is 2023. 110,457 112,363 Patrol Patrol Patrol operations Community engagement Communications Administrative Investigations 911 Dispatch Major projects Special operations Professional Standards Personnel Training Records and property Cadet program 85 Public Works Led by: Public Works Director 2024-2025 Budget 2022-2023 Budget 2024-2025 Budget Expenditure Type 2022 2023 2024 2025 Actual Budget Budget Budget General Fund Personnel services $3,035,691 $2,943,913 $3,089,060 $3,307,972 Contractual services 552,231 786,220 1,223,106 1,242,006 Commodities 1,216,517 1,181,500 1,217,000 1,252,500 Internal services 1,213,081 1,238,084 1,399,884 1,464,408 Total $6,017,520 $6,149,717 $6,929,050 $7,266,886 Other Funds Construction 89,570 560,790 1,153,440 991,000 Utility 19,139,320 20,911,714 41,104,371 32,136,311 Equipment Operations 1,909,269 2,021,489 2,189,464 2,275,327 Department Total $27,155,679 $29,643,710 $51,376,325 $42,669,524 2024-25 Total Expenditures by Function Factors Affecting the Budget The Department is contracting with multiple contractors to provide improvements to the capital infrastructure for projects identified in the Capital Improvement Plan. Two major improvements to our lift stations have occurred during this cycle. Lift Station 6, located on 72nd Street, and Lift Station 3 are being replaced due to their age and conditions. They pump sewage for nearly 70 percent of our community. The Department increased its commodities budget to cover the increases due to rising costs of water treatment chemicals and an increase in steel costs which impacts our costs for utility castings. Charges for internal services increased to cover inflationary increases. Public Works Admin 2% General Maintenance 9%Road Maintenance 4% Equipment Replacement 7% Water 20% Sewer 19% Storm 5% Capital Outlay 34% The Public Works Department maintains the City's roadway, water, sanitary and storm sewer infrastructure. This work ensures the community has safe streets and sidewalks, plowed roadways in the winter, clean drinking water, safe storm water collection and efficient sanitary sewer systems. The Department also maintains and repairs the City's fleet of automobiles and heavy and specialized equipment. The Department's work to maintain and operate infrastructure and the fleet improve the safety and livability of the City. full-time employees 2024 department budget of the 2024 consolidated budget 86 Department Organization & Performance Organization Chart & Functions Goals & Performance Measurement Departments develop one-year goals, the following are a selection of Public Works’ goals for 2024. •Conduct 2024 mill & overlay project. •Plan for 2025 mill & overlay project. •Implement crack sealing program. •Complete automatic meter reading automation. Performance Measure Description Budget Pillar Prior Year Current Year Division Percent of residents rating snow removal services as “excellent” or “good.” This is measured through the biennial Quality of Life survey. The prior year is 2021, current year is 2023. 90% 85% Asphalt & Concrete Streets Average pavement condition index. The Pavement Condition Index (PCI) is a measure of damage to the pavement surface. 100 indicates a new street; good rating ranges from 75 to 100, and fair ratings from 45 to 74. Each year, the City inventories one quarter of the streets. The prior year is 2022; current year is 2023. 78 78 Asphalt & Concrete Streets Percent of unaccounted water within the system. This is water the City produces but is not billed, meaning it is lost at some point throughout the system. The goal is as low a percent as possible. The prior year is 2022; current year is 2023. 3.6% 3.01% Utilities Number of completed repair orders. The prior year is 2021; current year is 2023. 953 1,414 Equipment Operations Asphalt Streets Street sweeping Surface maintenance Snow plowing Concrete Streets Pavement & sidewalk repair Sign maintenance Snow plowing Utilities Water treatment & delivery Sanitary sewer Storm sewer Equipment Operations Maintain City fleet Conduct emergency repaits 87 This page intentionally left blank. 88 Strong Foundation Reliable Service Livable City Better Together Financials 89 2022 2023 2024 2025 Actual Budget Budget Budget REVENUES AND OTHER FINANCING SOURCES Property Tax Levy 45,096,245$ 49,855,000$ 54,418,565$ 9.15% 61,752,773$ 13.48% Tax Increments 1,720,244 1,723,245 2,015,000 16.93% 2,415,000 19.85% Local Option Sales Tax - - 5,436,000 N/A 5,436,000 0.00% Franchise Fees & Other Taxes 3,661,134 3,696,269 3,995,900 8.11% 3,995,900 0.00% Special Assessments 4,426,156 3,726,253 3,890,096 4.40% 3,723,637 -4.28% Licenses & Permits 7,482,097 5,540,160 5,562,360 0.40% 5,644,338 1.47% Intergovernmental 6,673,178 4,700,100 3,181,828 -32.30% 2,962,582 -6.89% Charges for Services 14,245,623 13,249,708 17,249,935 30.19% 18,290,391 6.03% Fines and Forfeitures 359,680 650,000 350,000 -46.15% 350,000 0.00% Investment Income (3,883,446) 1,036,000 1,776,000 71.43% 1,650,000 -7.09% Other Revenue 8,550,501 3,864,485 3,911,850 1.23% 3,935,982 0.62% Transfers and Contributions 18,131,197 4,277,602 4,438,243 3.76% 4,672,391 5.28% Operating Revenue 56,166,200 52,867,978 53,970,248 2.08% 55,967,574 3.70% Debt Issued 31,291,270 2,813,402 - -100.00%- N/A Other Financing Sources 145,686 - 2,000,000 N/A 1,000,000 -50.00% TOTAL REVENUES AND OTHER FINANCING SOURCES 194,065,763$ 148,000,202$ 162,196,026$ 9.59%171,796,568$ 5.92% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of Goods Sold 10,458,750 11,414,891 10,570,828 -7.39% 11,453,268 8.35% Personnel Services 49,620,892 54,735,288 60,155,231 9.90%65,122,212 8.26% Contractual Services 34,728,159 28,936,987 37,494,382 29.57% 39,952,285 6.56% Commodities 6,183,923 6,084,268 6,639,838 9.13% 6,752,539 1.70% Internal Services 7,978,288 8,190,952 9,507,757 16.08%9,937,248 4.52% Capital Outlay 29,527,500 14,389,268 51,103,297 255.15% 40,767,125 -20.23% Depreciation 8,864,924 8,985,000 - -100.00%- N/A Debt Service 12,802,202 7,727,330 9,921,353 28.39% 26,809,224 170.22% Other Expenses 12,080 - - N/A - N/A Transfers and Contributions 14,685,915 4,277,602 4,438,243 3.76%4,672,391 5.28% TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 174,862,632 144,741,586 189,830,930 31.15% 205,466,292 8.24% EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,481,936 2,940,916 3,560,065 21.05% 3,429,538 -3.67% Human Resources 3,856,650 2,641,099 4,561,005 72.69% 4,794,139 5.11% Finance 5,106,801 2,226,369 3,620,179 62.60% 3,049,162 -15.77% Public Works 27,155,679 29,643,710 51,376,325 73.31% 42,669,524 -16.95% Engineering 16,641,967 20,815,148 25,649,511 23.23% 18,306,435 -28.63% Fire 29,207,398 15,964,461 17,092,318 7.06% 20,588,022 20.45% Parks and Recreation 36,067,820 39,008,628 42,309,354 8.46% 48,393,429 14.38% Police 15,662,369 16,094,529 19,418,967 20.66% 19,978,327 2.88% Community Development 23,562,515 5,403,996 9,391,866 73.79% 13,633,039 45.16% Information Technology 2,317,269 2,270,798 3,265,043 43.78% 3,559,168 9.01% Communications 1,508,948 1,718,205 1,706,115 -0.70% 2,053,167 20.34% Debt Service 11,293,281 6,013,727 7,880,182 31.04% 25,012,343 217.41% TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 174,862,632 144,741,586 189,830,930 31.15% 205,466,292 8.24%Check 2 CHANGE IN FUND BALANCE OR NET POSITION 19,203,131 3,258,616 (27,634,904) (33,669,724) FUND BALANCE OR NET POSITION - JANUARY 1 227,495,702 246,698,833 249,957,449 222,322,545 FUND BALANCE OR NET POSITION - DECEMBER 31 246,698,833$ 249,957,449$ 222,322,545$ 188,652,820$ Consolidated Budget Summary BIENNIAL BUDGET – ALL FUNDS AND YEARS 90 Combined Budget Summary 2022 ACTUAL AND 2023 BUDGET This table, along with the following 2024-2025 combined budget summary creates a detailed 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 45,096,245$ -$ -$ 45,096,245$ 49,855,000$ -$ -$ 49,855,000$ Tax Increments 1,720,244 - - 1,720,244 1,723,245 - - 1,723,245 Franchise Fees & Other Taxes 3,097,054 564,080 - 3,661,134 3,120,000 576,269 - 3,696,269 Special Assessments 4,426,156 - - 4,426,156 3,726,253 - - 3,726,253 Licenses & Permits 7,482,097 - - 7,482,097 5,540,160 - - 5,540,160 Intergovernmental 6,459,626 213,552 - 6,673,178 4,520,100 180,000 - 4,700,100 Charges for Services 6,254,452 158,587 7,832,585 14,245,623 6,140,791 117,725 6,991,192 13,249,708 Fines and Forfeitures 359,680 - - 359,680 650,000 - - 650,000 Investment Income (2,903,247) (980,199) - (3,883,446) 655,000 381,000 - 1,036,000 Other Revenue 5,350,358 3,200,008 135 8,550,501 667,122 3,197,363 - 3,864,485 Transfers and Contributions 13,470,363 4,648,478 12,355 18,131,197 3,074,252 1,203,350 - 4,277,602 Operating Revenue - 56,166,200 - 56,166,200 - 52,867,978 - 52,867,978 Debt Issued 31,291,270 - - 31,291,270 2,813,402 - - 2,813,402 Other Financing Sources 137,681 314 7,690 145,686 - - - - TOTAL REVENUES AND OTHER FINANCING SOURCES 122,241,977 63,971,020 7,852,765 194,065,763 82,485,325 58,523,685 6,991,192 148,000,202 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of Goods Sold - 10,458,750 - 10,458,750 - 11,414,891 - 11,414,891 Personnel Services 36,070,020 10,951,092 2,599,780 49,620,892 39,579,445 12,249,899 2,905,944 54,735,288 Contractual Services 18,877,499 12,131,179 3,719,481 34,728,159 11,719,493 14,589,054 2,628,440 28,936,987 Commodities 2,498,810 2,362,973 1,322,140 6,183,923 2,527,818 2,320,850 1,235,600 6,084,268 Internal Services 5,029,358 2,948,930 - 7,978,288 5,145,766 3,045,186 - 8,190,952 Capital Outlay 29,527,500 - - 29,527,500 14,389,268 - - 14,389,268 Depreciation - 8,864,924 - 8,864,924 - 8,985,000 - 8,985,000 Debt Service 11,277,660 1,524,542 - 12,802,202 6,485,977 1,241,353 - 7,727,330 Other Expenses 12,080 - - 12,080 - - - - Transfers and Contributions 13,150,952 1,534,963 - 14,685,915 2,816,752 1,460,850 - 4,277,602 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 116,443,878 50,777,352 7,641,402 174,862,632 82,664,519 55,307,083 6,769,984 144,741,586 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY FUNCTION Administration 2,481,936 - - 2,481,936 2,940,916 - - 2,940,916 Human Resources 1,659,169 - 2,197,481 3,856,650 1,533,038 - 1,108,061 2,641,099 Finance 3,921,191 1,185,610 - 5,106,801 1,351,006 875,363 - 2,226,369 Public Works 6,107,090 19,139,320 1,909,269 27,155,679 6,710,507 20,911,714 2,021,489 29,643,710 Engineering 15,579,483 (398,445) 1,460,929 16,641,967 18,118,307 1,297,205 1,399,636 20,815,148 Fire 27,480,942 1,726,455 - 29,207,398 14,192,996 1,771,465 - 15,964,461 Parks and Recreation 6,943,408 29,124,412 - 36,067,820 8,557,292 30,451,336 - 39,008,628 Police 15,662,369 - - 15,662,369 16,094,529 - - 16,094,529 Community Development 23,562,515 - - 23,562,515 5,403,996 - - 5,403,996 Information Technology 243,545 - 2,073,723 2,317,269 30,000 - 2,240,798 2,270,798 Communications 1,508,948 - - 1,508,948 1,718,205 - -1,718,205 Debt Service 11,293,281 - - 11,293,281 6,013,727 - -6,013,727 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 116,443,878 50,777,352 7,641,402 174,862,632 82,664,519 55,307,083 6,769,984 144,741,586 CHANGE IN FUND BALANCE OR NET POSITION 5,798,099 13,193,668 211,364 19,203,131 (179,194) 3,216,602 221,208 3,258,616 FUND BALANCE OR NET POSITION - JANUARY 1 103,341,640 120,012,770 4,141,291 227,495,702 109,139,739 133,206,439 4,352,655 246,698,833 FUND BALANCE OR NET POSITION - DECEMBER 31 109,139,739$ 133,206,439$ 4,352,655$ 246,698,833$ 108,960,545$ 136,423,041$ 4,573,863$ 249,957,449$ 2022 Actual 2023 Budget 91 Combined Budget Summary 2024 AND 2025 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 54,418,565$ -$ -$ 54,418,565$ 61,752,773$ -$ -$ 61,752,773$ Tax Increments 2,015,000 - - 2,015,000 2,415,000 - - 2,415,000 Local Option Sales Tax 5,436,000 - - 5,436,000 5,436,000 - - 5,436,000 Franchise Fees & Other Taxes 3,410,000 585,900 - 3,995,900 3,410,000 585,900 - 3,995,900 Special Assessments 3,890,096 - - 3,890,096 3,723,637 - - 3,723,637 Licenses & Permits 5,562,360 - - 5,562,360 5,644,338 - - 5,644,338 Intergovernmental 3,069,828 112,000 - 3,181,828 2,872,582 90,000 - 2,962,582 Charges for Services 7,202,096 127,850 9,919,989 17,249,935 7,441,144 128,750 10,720,497 18,290,391 Fines and Forfeitures 350,000 - - 350,000 350,000 - - 350,000 Investment Income 1,136,000 640,000 - 1,776,000 1,010,000 640,000 - 1,650,000 Other Revenue 712,550 3,199,300 - 3,911,850 729,682 3,206,300 - 3,935,982 Transfers and Contributions 3,022,713 1,415,530 - 4,438,243 3,105,861 1,566,530 - 4,672,391 Operating Revenue - 53,970,248 - 53,970,248 - 55,967,574 - 55,967,574 Other Financing Sources 2,000,000 - - 2,000,000 1,000,000 - - 1,000,000 TOTAL REVENUES AND OTHER FINANCING SOURCES 92,225,209 60,050,828 9,919,989 162,196,026 98,891,017 62,185,054 10,720,497 171,796,568 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY TYPE Cost of Goods Sold - 10,570,828 - 10,570,828 - 11,453,268 - 11,453,268 Personnel Services 43,937,442 13,365,134 2,852,655 60,155,231 47,708,608 14,382,131 3,031,473 65,122,212 Contractual Services 17,458,762 15,139,698 4,895,922 37,494,382 19,484,902 15,246,248 5,221,135 39,952,285 Commodities 2,552,988 2,640,050 1,446,800 6,639,838 2,611,694 2,648,945 1,491,900 6,752,539 Internal Services 5,999,832 3,507,925 - 9,507,757 6,318,840 3,618,408 - 9,937,248 Capital Outlay 25,875,035 25,228,262 - 51,103,297 24,367,604 16,399,521 - 40,767,125 Debt Service 7,880,182 2,041,171 - 9,921,353 25,012,343 1,796,881 - 26,809,224 Transfers and Contributions 3,066,413 1,371,830 - 4,438,243 3,298,861 1,373,530 - 4,672,391 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 106,770,655 73,864,898 9,195,377 189,830,930 128,802,852 66,918,932 9,744,508 205,466,292 EXPENDITURES, EXPENSES AND OTHER FINANCING USES - BY FUNCTION Administration 3,560,065 - - 3,560,065 3,429,538 - - 3,429,538 Human Resources 1,832,377 - 2,728,628 4,561,005 1,877,629 - 2,916,510 4,794,139 Finance 2,844,134 776,045 - 3,620,179 2,249,043 800,119 - 3,049,162 Public Works 8,082,490 41,104,371 2,189,464 51,376,325 8,257,886 32,136,311 2,275,327 42,669,524 Engineering 23,328,708 903,561 1,417,242 25,649,511 15,924,018 903,914 1,478,503 18,306,435 Fire 15,285,071 1,807,247 - 17,092,318 18,769,941 1,818,081 - 20,588,022 Parks and Recreation 13,035,679 29,273,675 - 42,309,354 17,132,921 31,260,508 - 48,393,429 Police 19,418,967 - - 19,418,967 19,978,327 - - 19,978,327 Community Development 9,391,866 - - 9,391,866 13,633,039 - - 13,633,039 Information Technology 405,000 - 2,860,043 3,265,043 485,000 - 3,074,168 3,559,168 Communications 1,706,115 - - 1,706,115 2,053,167 - -2,053,167 Debt Service 7,880,182 - - 7,880,182 25,012,343 - -25,012,343 TOTAL EXPENDITURES, EXPENSES AND OTHER FINANCING USES 106,770,655 73,864,898 9,195,377 189,830,930 128,802,852 66,918,932 9,744,508 205,466,292 CHANGE IN FUND BALANCE OR NET POSITION (14,545,446) (13,814,070) 724,612 (27,634,904) (29,911,835) (4,733,878) 975,989 (33,669,724) FUND BALANCE OR NET POSITION - JANUARY 1 95,932,775 137,563,814 4,360,191 237,856,780 81,387,329 123,749,744 5,084,803 210,221,876 FUND BALANCE OR NET POSITION - DECEMBER 31 81,387,329$ 123,749,744$ 5,084,803$ 210,221,876$ 51,475,494$ 119,015,866$ 6,060,792$ 176,552,151$ 2024 Budget 2025 Budget 92 2022 Actual Financial Results by Fund 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. Opioid Braemar Arts &Debt General HRA PACS Response CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property Tax Levy 36,497,425$ 235,598$ -$ -$ -$ -$ -$ -$ -$ 3,206,628$ 5,156,593$ 45,096,245$ Tax Increments - 1,720,244 - - - - - - - - - 1,720,244 Franchise Fees & Other Taxes 834,354 - 1,221,217 - 961,222 - - - -- 80,262 3,097,054 Special Assessments - - - - - - - - - 191,410 4,234,746 4,426,156 Licenses & Permits 7,403,205 - - - - - - - -- 78,892 7,482,097 Intergovernmental 4,321,986 - - 85,673 - 154,092 33,754 - - - 1,864,120 6,459,626 Charges for Services 5,786,026 173,508 - - - -- - - - 294,917 6,254,452 Fines and Forfeitures 359,680 - - - - - - - - - - 359,680 Investment Income (1,167,123) (680,997) (24,623) - (66,611) - 81 (4,957) - - (959,017) (2,903,247) Other Revenue 849,092 4,101,953 - - 20,232 - 308,831 2,160 - - 68,089 5,350,358 Transfers and Contributions 207,900 9,507,954 - - - - 11,512 - - 2,765,516 977,482 13,470,363 Debt Issued - 30,000 - - - - - - - 653,273 30,607,998 31,291,270 Other Financing Sources 24,408 - - - - - - - - - 113,274 137,681 TOTAL REVENUES AND OTHER FINANCING SOURCES 55,116,953 15,088,260 1,196,594 85,673 914,842 154,092 354,177 (2,797) - 6,816,827 42,517,356 122,241,977 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personnel Services 35,543,650 199,346 96,114 - 119,068 - - - - - 111,843 36,070,020 Contractual Services 9,363,999 6,890,245 27,542 - 177,281 154,092 179,936 382 - 18,450 2,065,571 18,877,499 Commodities 2,311,135 256 3,629 - 68,395 - 83,417 - - - 31,977 2,498,810 Internal Services 5,010,546 - 8,803 - 9,145 - -- - - 864 5,029,358 Capital Outlay 295,762 4,066,359 478,232 - 472,979 - -- - - 24,214,168 29,527,500 Debt Service 2,829 - - - -- -- - 11,274,831 - 11,277,660 Non-Operating 2,080 10,000 - - - - - - - - - 12,080 Transfers and Contributions 750,482 9,507,954 - - - - - - - - 2,892,516 13,150,952 TOTAL EXPENDITURES AND OTHER FINANCING USES 53,280,483 20,674,159 614,320 - 846,869 154,092 263,353 382 - 11,293,281 29,316,939 116,443,878 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,481,936 - - - - - - - - - - 2,481,936 Human Resources 1,659,169 - - - - - - - - - - 1,659,169 Finance 3,220,300 - - - - - - - - - 700,892 3,921,191 Public Works 6,017,520 - - - - - - - - - 89,570 6,107,090 Engineering 3,401,244 - 614,320 - 846,869 - - - - - 10,717,051 15,579,483 Fire 11,687,705 - - - -- - - - - 15,793,237 27,480,942 Parks and Recreation 6,446,896 - - - -- - 382 - - 496,130 6,943,408 Police 14,355,976 - - - -- 263,353 - - - 1,043,039 15,662,369 Community Development 2,534,858 20,674,159 - - - 154,092 - - - - 199,405 23,562,515 Information Technology - - - - - - - - - - 243,545 243,545 Communications 1,474,879 - - - - - - - - - 34,069 1,508,948 Debt Service - - - - - - - - - 11,293,281 - 11,293,281 TOTAL EXPENDITURES AND OTHER FINANCING USES 53,280,483 20,674,159 614,320 - 846,869 154,092 263,353 382 - 11,293,281 29,316,939 116,443,878 CHANGE IN FUND BALANCE 1,836,470$ (5,585,899)$ 582,274$ 85,673$ 67,974$ -$ 90,824$ (3,179)$ -$ (4,476,453)$ 13,200,417$ 5,798,099$ 2022 GOVERNMENTAL FUND ACTUAL REVENUES AND EXPENDITURES 93 2022 Actual Financial Results 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 32,747,345$ 14,427,475$ 1,156,194$ 6,147,786$ 2,561,028$ 491,331$ 118,217$ 1,405,011$ 918,069$ 59,972,456$ Intergovernmental 199,948 - - (3,105) 16,709 - - - - 213,552 Investment Income (628,259) (69,456) (84,310) (67,783) (18,336) (45,342) (1,111) (48,245) (17,357) (980,199) Other Revenues 21,887 - - 42,400 2,183 - 15,936 1,514 32,812 116,733 Transfers In - 4,673 41,121 59,401 458,440 1,120 350,000 1,284,732 2,448,991 4,648,478 TOTAL REVENUES AND TRANSFERS IN 32,340,920 14,362,692 1,113,004 6,178,700 3,020,024 447,110 483,043 2,643,013 3,382,515 63,971,021 EXPENSES AND TRANSFERS OUT - BY TYPE Cost of Goods Sold - 10,010,257 70,353 225,925 121,410 - - 15,949 14,855 10,458,750 Personnel Services 2,607,113 2,414,974 493,737 2,403,532 1,117,814 194,583 191,789 850,977 676,573 10,951,092 Contractual Services 8,644,584 685,086 243,133 780,868 1,011,596 170,479 57,239 260,748 277,445 12,131,179 Commodities 1,172,980 100,803 120,416 431,150 95,914 6,948 21,163 300,129 113,470 2,362,973 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 5,935,305 125,293 243,054 955,347 590,898 534,772 5,891 303,608 170,755 8,864,924 Interest 1,184,322 - 18,467 248,753 73,000 - - - - 1,524,542 Transfers and Contributions 534,963 1,000,000 - - - - - - - 1,534,963 TOTAL EXPENSES AND TRANSFERS OUT 21,652,940 14,733,782 1,230,979 5,368,236 3,246,748 944,351 338,539 1,880,566 1,381,212 50,777,352 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 1,185,610 - - - - - - - - 1,185,610 Public Works 19,139,320 - - - - - - - - 19,139,320 Engineering (398,445) - - - - - - - - (398,445) Fire 1,726,455 - - - - - - - - 1,726,455 Parks and Recreation - 14,733,782 1,230,979 5,368,236 3,246,748 944,351 338,539 1,880,566 1,381,212 29,124,412 TOTAL EXPENSES AND TRANSFERS OUT 21,652,940 14,733,782 1,230,979 5,368,236 3,246,748 944,351 338,539 1,880,566 1,381,212 50,777,352 CHANGE IN NET POSITION 10,687,980$ (371,090)$ (117,974)$ 810,464$ (226,724)$ (497,241)$ 144,504$ 762,447$ 2,001,303$ 13,193,669$ 2022 PROPRIETARY FUND ACTUAL REVENUES AND EXPENDITURES 94 2022 Actual Financial Results by Fund PROPRIETARY FUNDS – INTERNAL SERVICE Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operational Revenues 2,331,781$ 2,013,277$ 2,111,872$ 1,395,835$ 7,852,765$ TOTAL REVENUES AND TRANSFERS IN 2,331,781 2,013,277 2,111,872 1,395,835 7,852,765 EXPENSES AND TRANSFERS OUT - BY TYPE Personnel Services 314,932 644,520 1,095,468 544,860 2,599,780 Contractual Services 1,882,453 239,921 802,707 794,401 3,719,481 Commodities 96 1,024,828 175,548 121,668 1,322,140 TOTAL EXPENSES AND TRANSFERS OUT 2,197,481 1,909,269 2,073,723 1,460,929 7,641,402 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Human Resources 2,197,481 - - - 2,197,481 Public Works - 1,909,269 - - 1,909,269 Engineering - -- 1,460,929 1,460,929 Information Technology - -2,073,723 - 2,073,723 TOTAL EXPENSES AND TRANSFERS OUT 2,197,481 1,909,269 2,073,723 1,460,929 7,641,402 CHANGE IN NET POSITION 134,300$ 104,008$ 38,149$ (65,093)$ 211,364$ 2022 INTERNAL SERVICE FUND ACTUAL REVENUES AND EXPENDITURES 95 2023 Budget by Fund GOVERNMENTAL FUNDS Opioid Braemar Arts &Debt General HRA PACS Response CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Property Tax Levy 39,820,200$ 244,400$ -$ -$ -$ -$ -$ -$ -$ 3,230,000$ 6,560,400$ 49,855,000$ 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 & Permits 5,466,160 - - - - - - - -- 74,000 5,540,160 Intergovernmental 1,605,100 - - - - 135,000 - - - - 2,780,000 4,520,100 Charges for Services 5,945,791 - - - - - - - -- 195,000 6,140,791 Fines and Forfeitures 650,000 - - - - - - - -- - 650,000 Investment Income 250,000 186,000 - - 15,000 - - 1,000 - - 203,000 655,000 Other Revenue 375,500 - - - - - 289,122 2,500 - - - 667,122 Transfers and Contributions 157,500 - - - - - -- - 2,816,752 100,000 3,074,252 Debt Issued - - - - - - - - - - 2,813,402 2,813,402 TOTAL REVENUES AND OTHER FINANCING SOURCES 55,100,251 2,153,645 1,200,000 - 1,015,000 135,000 289,122 3,500 - 6,046,752 16,542,055 82,485,325 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personnel Services 38,964,617 207,455 131,506 - 157,660 - - - - - 118,207 39,579,445 Contractual Services 8,764,510 2,197,470 75,720 - 66,020 135,000 129,500 1,000 - - 350,273 11,719,493 Commodities 2,444,743 3,000 13,000 - 1,200 - 7,500 - - - 58,375 2,527,818 Internal Services 5,126,384 - 9,069 - 9,437 - -- - - 876 5,145,766 Debt Service - 250,000 - - - - - - - 4,399,600 - 4,649,600 Capital Outlay - - 1,030,000 - 500,000 - - - - - 12,859,268 14,389,268 Other Expenses - 222,250 - - - - - - - 1,614,127 - 1,836,377 Transfers and Contributions - -- - - - - - - - 2,816,752 2,816,752 TOTAL EXPENDITURES AND OTHER FINANCING USES 55,300,254 2,880,175 1,259,295 - 734,317 135,000 137,000 1,000 - 6,013,727 16,203,751 82,664,519 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 2,874,916 - - - - - - - - - 66,000 2,940,916 Human Resources 1,533,038 - - - - - - - - - -1,533,038 Finance 1,351,006 - - - - - - - - - -1,351,006 Public Works 6,149,717 - - - - - - - - - 560,790 6,710,507 Engineering 3,850,859 - 1,259,295 - 734,317 - - - - - 12,273,836 18,118,307 Fire 13,483,746 - - - -- - - - - 709,250 14,192,996 Parks and Recreation 6,914,967 - - - -- - 1,000 - - 1,641,325 8,557,292 Police 15,147,979 - - - -- 137,000 - - - 809,550 16,094,529 Community Development 2,388,821 2,880,175 - - - 135,000 - - - - - 5,403,996 Information Technology - - - - - - - - - - 30,000 30,000 Communications 1,605,205 - - - - - - - - - 113,000 1,718,205 Debt Service - - - - - - - - - 6,013,727 - 6,013,727 TOTAL EXPENDITURES AND OTHER FINANCING USES 55,300,254 2,880,175 1,259,295 - 734,317 135,000 137,000 1,000 - 6,013,727 16,203,751 82,664,519 CHANGE IN FUND BALANCE (200,003)$ (726,530)$ (59,295)$ -$ 280,683$ -$ 152,122$ 2,500$ -$ 33,025$ 338,304$ (179,194)$ 2023 GOVERNMENTAL FUND BUDGETS 96 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 29,434,398$ 15,665,239$ 1,100,098$ 4,610,151$ 2,645,062$ 560,000$ 502,483$ 1,388,904$ 833,000$ 56,739,335$ 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 Revenues 20,000 - - - - - - - - 20,000 Transfers In - 3,750 16,000 53,600 392,000 1,000 300,000 12,000 425,000 1,203,350 TOTAL REVENUES AND TRANSFERS IN 29,936,398 15,689,989 1,136,098 4,672,751 3,040,062 572,000 802,483 1,411,904 1,262,000 58,523,685 EXPENSES AND TRANSFERS OUT - BY TYPE Cost of Goods Sold - 10,970,141 52,250 191,000 111,000 - 500 78,000 12,000 11,414,891 Personnel Services 3,293,638 2,497,197 544,275 2,076,421 1,267,849 153,698 616,933 965,584 834,304 12,249,899 Contractual Services 11,031,316 689,299 190,234 673,050 1,007,222 211,070 115,819 387,676 283,368 14,589,054 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 937,523 - 15,803 227,268 60,759 - - - - 1,241,353 Transfers and Contributions 460,850 1,000,000 - - - - - - - 1,460,850 TOTAL EXPENSES AND TRANSFERS OUT 24,855,747 15,752,521 1,250,445 4,796,869 3,496,945 942,797 882,936 1,880,620 1,448,203 55,307,083 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 875,363 - - - - - - - - 875,363 Public Works 20,911,714 - - - - - - - - 20,911,714 Engineering 1,297,205 - - - - - - - - 1,297,205 Fire 1,771,465 - - - - - - - - 1,771,465 Parks and Recreation - 15,752,521 1,250,445 4,796,869 3,496,945 942,797 882,936 1,880,620 1,448,203 30,451,336 TOTAL EXPENSES AND TRANSFERS OUT 24,855,747 15,752,521 1,250,445 4,796,869 3,496,945 942,797 882,936 1,880,620 1,448,203 55,307,083 CHANGE IN NET POSITION 5,080,651$ (62,532)$ (114,347)$ (124,118)$ (456,883)$ (370,797)$ (80,453)$ (468,716)$ (186,203)$ 3,216,602$ 2023 PROPRIETARY FUND BUDGETS 97 2023 Budget by Fund PROPRIETARY FUNDS – INTERNAL SERVICE Risk Equipment Information Facilities Management Operations Technology Management Fund Fund Fund Fund Total REVENUES AND TRANSFERS IN Operational Revenues 1,107,240$ 2,055,684$ 2,421,160$ 1,407,108$ 6,991,192$ TOTAL REVENUES AND TRANSFERS IN 1,107,240 2,055,684 2,421,160 1,407,108 6,991,192 EXPENSES AND TRANSFERS OUT - BY TYPE Personnel Services 163,261 803,269 1,345,498 593,916 2,905,944 Contractual Services 944,800 205,120 870,300 608,220 2,628,440 Commodities - 1,013,100 25,000 197,500 1,235,600 TOTAL EXPENSES AND TRANSFERS OUT 1,108,061 2,021,489 2,240,798 1,399,636 6,769,984 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Human Resources 1,108,061 - - - 1,108,061 Public Works - 2,021,489 - - 2,021,489 Engineering - - - 1,399,636 1,399,636 Information Technology - - 2,240,798 - 2,240,798 TOTAL EXPENSES AND TRANSFERS OUT 1,108,061 2,021,489 2,240,798 1,399,636 6,769,984 CHANGE IN NET POSITION (821)$ 34,195$ 180,362$ 7,472$ 221,208$ 2023 INTERNAL SERVICE FUND BUDGETS 98 2024 Budget by Fund GOVERNMENTAL FUNDS Opioid Braemar Arts &Debt General HRA PACS Response CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property Tax Levy 43,744,165$ 251,700$ -$ -$ -$ -$ -$ -$ -$ 3,471,700$ 6,951,000$ 54,418,565$ Tax Increments - 2,015,000 - - - - - - - - - 2,015,000 Local Option Sales Tax - -- - - - - - - - 5,436,000 5,436,000 Franchise Fees & Other Taxes 1,120,000 - 1,230,000 - 980,000 - - - - - 80,000 3,410,000 Special Assessments - - - - - - - - - - 3,890,096 3,890,096 Licenses & Permits 5,562,360 - - - - - - - - - - 5,562,360 Intergovernmental 2,890,514 - - 29,314 - 150,000 - - - - - 3,069,828 Charges for Services 6,402,096 800,000 - - - -- - - - - 7,202,096 Fines and Forfeitures 350,000 - - - - - - - - - - 350,000 Investment Income 250,000 430,000 22,000 2,000 46,000 - 3,000 1,000 - - 382,000 1,136,000 Other Revenue 465,050 - - - 20,000 - 225,000 2,500 - - - 712,550 Transfers and Contributions 156,300 - - - - - -- - 2,866,413 - 3,022,713 Other Financing Sources 2,000,000 - - - - - -- - - - 2,000,000 TOTAL REVENUES AND OTHER FINANCING SOURCES 62,940,485 3,496,700 1,252,000 31,314 1,046,000 150,000 228,000 3,500 - 6,338,113 16,739,096 92,225,209 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personnel Services 43,203,655 172,868 147,944 - 281,552 - - - - - 131,423 43,937,442 Commodities 2,533,688 300 5,000 - 4,000 - 10,000 - - - -2,552,988 Contractual Services 10,662,428 6,099,640 80,440 29,314 298,440 150,000 137,500 1,000 - - - 17,458,762 Internal Services 5,966,160 - 9,648 - 21,120 - - - - - 2,904 5,999,832 Capital Outlay 374,554 450,000 1,825,400 - 600,000 - 20,000 - - - 22,605,081 25,875,035 Debt service - - - - - - - - - 7,880,182 - 7,880,182 Transfers and Contributions 200,000 - - - - - - - - - 2,866,413 3,066,413 TOTAL EXPENDITURES AND OTHER FINANCING USES 62,940,485 6,722,808 2,068,432 29,314 1,205,112 150,000 167,500 1,000 - 7,880,182 25,605,821 106,770,655 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,110,065 - - - - - - - - - 450,000 3,560,065 Human Resources 1,832,377 - - - - - - - - - -1,832,377 Finance 2,844,134 - - - - - - - - - -2,844,134 Public Works 6,929,050 - - - - - - - - - 1,153,440 8,082,490 Engineering 4,863,060 - 2,068,432 - 1,205,112 - - - - - 15,192,104 23,328,708 Fire 14,099,632 - - 29,314 - - - - - - 1,156,125 15,285,071 Parks and Recreation 7,794,577 - - - - - - 1,000 - - 5,240,102 13,035,679 Police 17,287,417 - - - - - 167,500 - - - 1,964,050 19,418,967 Community Development 2,519,058 6,722,808 - - - 150,000 - - - - - 9,391,866 Information Technology - - - - - - - - - - 405,000 405,000 Communications 1,661,115 - - - - - - - - - 45,000 1,706,115 Debt Service - - - - - - - - - 7,880,182 - 7,880,182 TOTAL EXPENDITURES AND OTHER FINANCING USES 62,940,485 6,722,808 2,068,432 29,314 1,205,112 150,000 167,500 1,000 - 7,880,182 25,605,821 106,770,655 CHANGE IN FUND BALANCE -$ (3,226,108)$ (816,432)$ 2,000$ (159,112)$ -$ 60,500$ 2,500$ -$ (1,542,069)$ (8,866,725)$ (14,545,446)$ 2024 GOVERNMENTAL FUND BUDGETS 99 2024 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 30,212,603$ 14,793,345$ 1,149,950$ 6,083,500$ 2,592,000$ 565,500$ 120,000$ 1,460,700$ 900,700$ 57,878,298$ Intergovernmental 112,000 - - - - - - - - 112,000 Investment Income 434,000 44,000 48,000 52,000 13,000 26,000 4,000 10,000 9,000 640,000 Other Revenues 5,000 - - - - - -- - 5,000 Transfers In - 5,180 17,000 61,050 400,000 1,300 300,000 17,000 614,000 1,415,530 TOTAL REVENUES AND TRANSFERS IN 30,763,603 14,842,525 1,214,950 6,196,550 3,005,000 592,800 424,000 1,487,700 1,523,700 60,050,828 EXPENSES AND TRANSFERS OUT - BY TYPE Cost of Goods Sold - 10,091,828 76,000 226,000 125,000 - - 37,000 15,000 10,570,828 Personnel Services 3,451,253 2,641,677 680,766 2,557,347 1,415,585 183,749 324,077 1,192,942 917,738 13,365,134 Contractual Services 11,123,490 640,371 264,000 923,600 1,161,299 200,782 83,341 376,809 366,006 15,139,698 Commodities 1,380,650 58,500 139,400 498,050 172,500 17,200 26,000 206,000 141,750 2,640,050 Internal Services 1,706,617 494,928 53,052 502,956 303,252 41,184 54,648 196,584 154,704 3,507,925 Capital Outlay 24,798,256 125,000 102,000 203,006 - - - - - 25,228,262 Interest 1,759,128 - 13,100 211,969 56,975 - - - - 2,041,171 Transfers and Contributions 371,830 1,000,000 - - - - - - - 1,371,830 TOTAL EXPENSES AND TRANSFERS OUT 44,591,224 15,052,304 1,328,318 5,122,928 3,234,611 442,915 488,066 2,009,335 1,595,198 73,864,898 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 776,045 - - - - - - - - 776,045 Public Works 41,104,371 - - - - - - - - 41,104,371 Engineering 903,561 - - - - - - - - 903,561 Fire 1,807,247 - - - - - - - - 1,807,247 Parks and Recreation - 15,052,304 1,328,318 5,122,928 3,234,611 442,915 488,066 2,009,335 1,595,198 29,273,675 TOTAL EXPENSES AND TRANSFERS OUT 44,591,224 15,052,304 1,328,318 5,122,928 3,234,611 442,915 488,066 2,009,335 1,595,198 73,864,898 CHANGE IN NET POSITION (13,827,621)$ (209,779)$ (113,368)$ 1,073,622$ (229,611)$ 149,885$ (64,066)$ (521,635)$ (71,498)$ (13,814,070)$ 2024 ENTERPRISE FUND BUDGETS 100 2024 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 3,359,970$ 2,239,618$ 2,861,381$ 1,459,020$ 9,919,989$ TOTAL REVENUES AND TRANSFERS IN 3,359,970 2,239,618 2,861,381 1,459,020 9,919,989 EXPENSES AND TRANSFERS OUT - BY TYPE Personnel Services 224,156 842,214 1,355,583 430,702 2,852,655 Contractual Services 2,499,472 252,450 1,299,460 844,540 4,895,922 Commodities 5,000 1,094,800 205,000 142,000 1,446,800 TOTAL EXPENSES AND TRANSFERS OUT 2,728,628 2,189,464 2,860,043 1,417,242 9,195,377 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Human Resources 2,728,628 - - - 2,728,628 Public Works -2,189,464 - - 2,189,464 Engineering --- 1,417,242 1,417,242 Information Technology --2,860,043 - 2,860,043 TOTAL EXPENSES AND TRANSFERS OUT 2,728,628 2,189,464 2,860,043 1,417,242 9,195,377 CHANGE IN NET POSITION 631,342$ 50,154$ 1,338$ 41,778$ 724,612$ 2024 INTERNAL SERVICE FUND BUDGETS 101 2025 Budget by Fund GOVERNMENTAL FUNDS Opioid Braemar Arts &Debt General HRA PACS Response CAS CDBG Police SR Memorial Culture Service Construction Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total REVENUES AND OTHER FINANCING SOURCES Property Tax Levy 48,535,573$ 259,300$ -$ -$ -$ -$ -$ -$ -$ 5,785,900$ 7,172,000$ 61,752,773$ Tax Increments - 2,415,000 - - - - - - - - - 2,415,000 Local Option Sales Tax - -- - - - - - - - 5,436,000 5,436,000 Franchise Fees & Other Taxes 1,120,000 - 1,230,000 - 980,000 - - - - - 80,000 3,410,000 Special Assessments - - - - - - - - - - 3,723,637 3,723,637 Licenses & Permits 5,644,338 - - - - - - - - - - 5,644,338 Intergovernmental 2,667,960 - - 34,622 - 170,000 - - - - - 2,872,582 Charges for Services 6,641,144 800,000 - - - -- - - - - 7,441,144 Fines and Forfeitures 350,000 - - - - - - - - - - 350,000 Investment Income 250,000 304,000 22,000 2,000 46,000 - 3,000 1,000 - - 382,000 1,010,000 Other Revenue 482,182 - - - 20,000 - 225,000 2,500 - - - 729,682 Transfers and Contributions 157,000 - - - - - -- - 2,948,861 - 3,105,861 Other Financing Sources 1,000,000 - - - - - -- - - - 1,000,000 TOTAL REVENUES AND OTHER FINANCING SOURCES 66,848,197 3,778,300 1,252,000 36,622 1,046,000 170,000 228,000 3,500 - 8,734,761 16,793,637 98,891,017 EXPENDITURES AND OTHER FINANCING USES - BY TYPE Personnel Services 46,929,559 182,088 156,234 - 299,380 - - - - - 141,347 47,708,608 Contractual Services 10,693,260 8,069,640 80,440 34,622 298,440 170,000 137,500 1,000 - - - 19,484,902 Commodities 2,592,394 300 5,000 - 4,000 - 10,000 - - - - 2,611,694 Internal Services 6,282,984 - 10,308 - 22,572 - -- - - 2,976 6,318,840 Capital Outlay - 2,550,000 518,500 - 600,000 - -- - - 20,699,104 24,367,604 Debt Service - - - - - - - - - 25,012,343 - 25,012,343 Transfers and Contributions 350,000 - - - - - - - - - 2,948,861 3,298,861 TOTAL EXPENDITURES AND OTHER FINANCING USES 66,848,197 10,802,028 770,482 34,622 1,224,392 170,000 147,500 1,000 - 25,012,343 23,792,288 128,802,852 EXPENDITURES AND OTHER FINANCING USES - BY DEPARTMENT Administration 3,154,538 - - - - - - - - - 275,000 3,429,538 Human Resources 1,877,629 - - - - - - - - - -1,877,629 Finance 2,249,043 - - - - - - - - - -2,249,043 Public Works 7,266,886 - - - - - - - - - 991,000 8,257,886 Engineering 5,081,306 - 770,482 - 1,224,392 - - - - - 8,847,838 15,924,018 Fire 15,658,069 - -34,622 - - - - - - 3,077,250 18,769,941 Parks and Recreation 8,245,721 - -- - - - 1,000 - - 8,886,200 17,132,921 Police 18,860,827 - -- - - 147,500 - - - 970,000 19,978,327 Community Development 2,661,011 10,802,028 - - - 170,000 - - - - - 13,633,039 Information Technology - - - - - - - - - - 485,000 485,000 Communications 1,793,167 - - - - - - - - - 260,000 2,053,167 Debt Service - - - - - - - - - 25,012,343 - 25,012,343 TOTAL EXPENDITURES AND OTHER FINANCING USES 66,848,197 10,802,028 770,482 34,622 1,224,392 170,000 147,500 1,000 - 25,012,343 23,792,288 128,802,852 CHANGE IN FUND BALANCE -$ (7,023,728)$ 481,518$ 2,000$ (178,392)$ -$ 80,500$ 2,500$ -$ (16,277,581)$ (6,998,651)$ (29,911,835)$ 2025 GOVERNMENTAL FUND BUDGETS 102 2025 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 31,948,581$ 15,014,993$ 1,184,100$ 6,088,500$ 2,592,000$ 565,500$ 122,000$ 1,466,100$ 901,750$ 59,883,524$ Intergovernmental 90,000 - - - - - -- -90,000 Investment Income 434,000 44,000 48,000 52,000 13,000 26,000 4,000 10,000 9,000 640,000 Other Revenues 5,000 - - - - - -- -5,000 Transfers In - 5,180 17,000 61,050 400,000 1,300 300,000 18,000 764,000 1,566,530 TOTAL REVENUES AND TRANSFERS IN 32,477,581 15,064,173 1,249,100 6,201,550 3,005,000 592,800 426,000 1,494,100 1,674,750 62,185,054 EXPENSES AND TRANSFERS OUT - BY TYPE Cost of Goods Sold - 10,969,768 78,500 226,000 125,000 - - 39,000 15,000 11,453,268 Personnel Services 3,758,646 2,818,776 721,841 2,713,287 1,523,587 203,080 352,114 1,287,383 1,003,417 14,382,131 Contractual Services 11,162,105 638,731 267,586 923,852 1,165,907 201,818 86,599 386,903 412,747 15,246,248 Commodities 1,381,150 58,500 143,900 498,050 156,500 19,200 29,000 206,750 155,895 2,648,945 Internal Services 1,742,676 514,020 55,944 523,848 315,216 42,684 57,408 204,780 161,832 3,618,408 Capital Outlay 15,692,180 220,000 290,000 197,341 - - - - - 16,399,521 Interest 1,548,138 - 9,600 189,044 50,100 - - - - 1,796,881 Transfers and Contributions 373,530 1,000,000 - - - - - - - 1,373,530 TOTAL EXPENSES AND TRANSFERS OUT 35,658,425 16,219,795 1,567,371 5,271,422 3,336,310 466,782 525,121 2,124,816 1,748,891 66,918,932 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Finance 800,119 - - - - - - - - 800,119 Public Works 32,136,311 - - - - - - - - 32,136,311 Engineering 903,914 - - - - - - - - 903,914 Fire 1,818,081 - - - - - - - - 1,818,081 Parks and Recreation - 16,219,795 1,567,371 5,271,422 3,336,310 466,782 525,121 2,124,816 1,748,891 31,260,508 TOTAL EXPENSES AND TRANSFERS OUT 35,658,425 16,219,795 1,567,371 5,271,422 3,336,310 466,782 525,121 2,124,816 1,748,891 66,918,932 CHANGE IN NET POSITION (3,180,844) (1,155,622) (318,271) 930,128 (331,310) 126,018 (99,121) (630,716) (74,141) (4,733,878) 2025 ENTERPRISE FUND BUDGETS 103 2025 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 4,234,987$ 2,331,113$ 2,626,322$ 1,528,075$ 10,720,497$ TOTAL REVENUES AND TRANSFERS IN 4,234,987 2,331,113 2,626,322 1,528,075 10,720,497 EXPENSES AND TRANSFERS OUT - BY TYPE Personnel Services 236,510 902,827 1,431,448 460,688 3,031,473 Contractual Services 2,672,000 257,700 1,422,720 868,715 5,221,135 Commodities 8,000 1,114,800 220,000 149,100 1,491,900 TOTAL EXPENSES AND TRANSFERS OUT 2,916,510 2,275,327 3,074,168 1,478,503 9,744,508 EXPENSES AND TRANSFERS OUT - BY DEPARTMENT Human Resources 2,916,510 - - - 2,916,510 Public Works - 2,275,327 - - 2,275,327 Engineering - -- 1,478,503 1,478,503 Information Technology - -3,074,168 - 3,074,168 TOTAL EXPENSES AND TRANSFERS OUT 2,916,510 2,275,327 3,074,168 1,478,503 9,744,508 CHANGE IN NET POSITION 1,318,477$ 55,786$ (447,846)$ 49,572$ 975,989$ 2025 INTERNAL SERVICE FUND BUDGETS 104 Tax Increment Financing District Budgets 2022 2023 2024 2025 Actual Budget Budget Budget Centennial TIF District Personnel services 25,246 207,455 - - Contractual services 22,127 425,720 26,440 26,440 Capital Outlay 7,246 -450,000 350,000 Total $54,618 $633,175 $476,440 $376,440 Southdale 2 TIF District Personnel services 39,909 - - - Contractual services 3,852,037 18,000 2,000,000 2,000,000 Total $3,891,945 $18,000 $2,000,000 $2,000,000 Pentagon Park TIF District Personnel services 26,434 - - - Contractual services 390,328 476,000 110,000 110,000 Total $416,761 $476,000 $110,000 $110,000 66th West TIF District Personnel services 1,074 - - - Contractual services 585 3,500 1,500 1,500 Total $1,659 $3,500 $1,500 $1,500 Grandview 2 TIF District Personnel services 26,939 - - - Contractual services 27,659 522,250 5,000 5,000 Bond Principle & Interest -472,250 - - Capital Outlay 3,795,925 - - - Total $3,850,523 $994,500 $5,000 $5,000 50th and France 2 TIF District Personnel services 11,877 - - - Contractual services 556,920 425,000 554,000 554,000 Total $568,797 $425,000 $554,000 $554,000 44th and France 2 TIF District Personnel services 10,747 - - - Contractual services 217,209 39,000 212,000 212,000 Total $227,956 $39,000 $212,000 $212,000 105 2022 2023 2024 2025 Actual Budget Budget Budget 72nd and France TIF District Contractual services - 5,000 - - Total $- $5,000 $- $- 70th and Amundson TIF District Contractual services - - 5,000 5,000 Total $- $- $5,000 $5,000 W 76th Street TIF District Contractual services -34,500 25,000 25,000 Total $- $34,500 $25,000 $25,000 Eden Wilson TIF Contractual services 1,549 - - 370,000 Capital Outlay 132,414 - - 2,200,000 Total $133,963 $- $- $2,570,000 Grand Total $9,146,222 $2,628,675 $3,388,940 $5,858,940 106 Projected Changes in Fund Balance – All Funds 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. 107 Fund Balance – Governmental Funds Revenues and Expenditures Fund Balance other financing and other Fund Balance $ Increase/ % Increase/ Fund Year January 1 sources financing uses December 31 (Decrease)(Decrease)Reason for Increase/(Decrease) > 10% General Fund 2022 23,773,538 55,116,953 53,280,448 25,610,043 1,836,505 7.7% 2023 25,610,043 55,100,251 55,300,254 25,410,040 (200,003) -0.8% 2024 25,410,040 62,940,485 62,940,485 25,410,040 (0) 0.0% 2025 25,410,040 66,848,197 66,848,197 25,410,040 (0) 0.0% Housing and 2022 38,936,579 15,088,260 20,674,159 33,350,676 (5,585,903) Less than anticipated revenue received Redevelopment 2023 33,350,676 2,153,645 2,880,175 32,624,146 (726,530) -2.2% Authority (HRA)2024 32,624,146 3,496,700 6,722,808 29,398,038 (3,226,108) -9.9% 2025 29,398,038 3,778,300 10,802,028 22,374,310 (7,023,728) -23.9%Projects detailed in 2023-2028 CIP Pedestrian and 2022 423,591 1,196,594 614,320 1,005,865 582,274 137.5%Building fund balance for future projects Cyclist Safety (PACS)2023 1,005,865 1,200,000 1,259,295 946,570 (59,295) -5.9% 2024 946,570 1,252,000 2,068,432 130,138 (816,432) -86.3%Projects detailed in 2023-2028 CIP 2025 130,138 1,252,000 770,482 611,656 481,518 370.0%Projects detailed in 2023-2028 CIP Conservation and 2022 2,299,363 914,843 846,869 2,367,338 67,975 3.0% Sustainability (CAS)2023 2,367,338 1,015,000 734,317 2,648,021 280,683 11.9%Projects detailed in 2023-2028 CIP 2024 2,648,021 1,046,000 1,205,112 2,488,909 (159,112) -6.0% 2025 2,488,909 1,046,000 1,224,392 2,310,517 (178,392) -7.2% Community 2022 - 154,092 154,092 - - N/A Development 2023 - 135,000 135,000 - - N/A Block Grant (CDBG)2024 - 150,000 150,000 - - N/A 2025 - 170,000 170,000 - - N/A Police Special 2022 762,008 354,177 263,353 852,832 90,824 11.9%Building fund balance for future projects Revenue 2023 852,832 289,122 137,000 1,004,954 152,122 17.8%Building fund balance for future projects 2024 1,004,954 228,000 167,500 1,065,454 60,500 6.0% 2025 1,065,454 228,000 147,500 1,145,954 80,500 7.6% Braemar Memorial 2022 131,145 (2,798) 382 127,965 (3,179) -2.4% 2023 127,965 3,500 1,000 130,465 2,500 2.0% 2024 130,465 3,500 1,000 132,965 2,500 1.9% 2025 132,965 3,500 1,000 135,465 2,500 1.9% Arts & Culture 2022 - - - - - N/A 2023 - - - - - N/A 2024 - - - - - N/A 2025 - - - - - N/A Debt Service 2022 11,178,492 6,816,827 11,293,281 6,702,038 (4,476,453) -40.0%Scheduled debt payments 2023 6,702,038 6,046,752 6,013,727 6,735,064 33,025 0.5% 2024 6,735,064 6,338,113 7,880,182 5,192,995 (1,542,069) -22.9%Scheduled debt payments 2025 5,192,995 8,734,761 25,012,343 (11,084,586) (16,277,581) -313.5%Payoff 2022B Bond; debt service on construction of new fire station Opioid Epidemic 2022 - 85,673 - 85,673 85,673 N/A Response 2023 85,673 - - 85,673 - 0.0% 2024 85,673 31,314 29,314 87,673 2,000 2.3% 2025 87,673 36,622 34,622 89,673 2,000 2.3% Construction 2022 25,836,929 42,517,356 29,316,939 39,037,344 13,200,417 51.1%Transfer in and 2022 bond issuance 2023 39,037,344 16,542,055 16,203,751 39,375,648 338,304 0.9% 2024 39,375,648 16,739,096 25,605,821 30,508,922 (8,866,725) -22.5%Projects detailed in 2023-2028 CIP 2025 30,508,922 16,793,637 23,792,288 23,510,271 (6,998,651) -22.9%Projects detailed in 2023-2028 CIP 108 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. 109 NET POSITION – PROPRIETARY FUNDS Revenues and Expenditures Fund Balance other financing and other Fund Balance $ Increase/ % Increase/ Fund Year January 1 sources financing uses December 31 (Decrease)(Decrease)Reason for Increase/(Decrease) > 10% Utilities 2022 99,712,514 32,340,920 21,652,940 110,400,495 10,687,980 10.7%Building fund balance for future projects 2023 110,400,495 29,936,398 24,855,747 115,481,146 5,080,651 4.6% 2024 115,481,146 30,763,603 44,591,224 101,653,525 (13,827,621) -12.0%Planned capital spending 2025 101,653,525 32,477,581 35,658,425 98,472,682 (3,180,844) -3.1% Liquor 2022 3,459,953 14,362,692 14,733,782 3,088,863 (371,090) -10.7%Operating transfer to park enterprises exceeded net operating income 2023 3,088,863 15,689,989 15,752,521 3,026,331 (62,532) -2.0% 2024 3,026,331 14,842,525 15,052,304 2,816,552 (209,779) -6.9% 2025 2,816,552 15,064,173 16,219,795 1,660,930 (1,155,622) -41.0%Budgeted transfers to park enterprises greater than projected net operating income Aquatic Center 2022 3,068,427 1,113,004 1,230,979 2,950,452 (117,974) -3.8% 2023 2,950,452 1,136,098 1,250,445 2,836,105 (114,347) -3.9% 2024 2,836,105 1,214,950 1,328,318 2,722,737 (113,368) -4.0% 2025 2,722,737 1,249,100 1,567,371 2,404,466 (318,271) -11.7%Increased cost of operations Golf Course 2022 1,835,967 6,178,700 5,368,236 2,646,430 810,464 44.1%Operating revenue exceeded expenses 2023 2,646,430 4,672,751 4,796,869 2,522,312 (124,118) -4.7% 2024 2,522,312 6,196,550 5,122,928 3,595,935 1,073,622 42.6%Operating revenue projected to exceed expenses 2025 3,595,935 6,201,550 5,271,422 4,526,063 930,128 25.9%Operating revenue projected to exceed expenses Braemar Arena 2022 3,599,074 3,020,024 3,246,748 3,372,350 (226,724) -6.3% 2023 3,372,350 3,040,062 3,496,945 2,915,467 (456,883) -13.5%Increased cost of operations 2024 2,915,467 3,005,000 3,234,611 2,685,856 (229,611) -7.9% 2025 2,685,856 3,005,000 3,336,310 2,354,546 (331,310) -12.3%Increased cost of operations and reduction in revenue from closures due to capital improvement project Braemar Field 2022 7,181,917 447,110 944,351 6,684,676 (497,241) -6.9% 2023 6,684,676 572,000 942,797 6,313,879 (370,797) -5.5% 2024 6,313,879 592,800 442,915 6,463,764 149,885 2.4% 2025 6,463,764 592,800 466,782 6,589,782 126,018 1.9% Art Center 2022 (46,431) 483,043 338,539 98,072 144,504 -311.2%Class offerings significantly reduced due to art center building closure 2023 98,072 802,483 882,936 17,619 (80,453) -82.0%Class offerings significantly reduced due to art center building closure 2024 17,619 424,000 488,066 (46,447) (64,066) -363.6%Class offerings significantly reduced due to art center building closure 2025 (46,447) 426,000 525,121 (145,568) (99,121) 213.4%New art center building expected to open with more class offerings Edinborough Park 2022 1,071,292 2,643,013 1,880,566 1,833,739 762,447 71.2%Capital contribution 2023 1,833,739 1,411,904 1,880,620 1,365,023 (468,716) -25.6%Operating expenses projected to exceed operating revenues 2024 1,365,023 1,487,700 2,009,335 843,388 (521,635) -38.2%Operating expenses projected to exceed operating revenues 2025 843,388 1,494,100 2,124,816 212,672 (630,716) -74.8%Operating expenses projected to exceed operating revenues Centennial Lakes 2022 130,058 3,382,515 1,381,212 2,131,361 2,001,303 1538.8%Capital contribution 2023 2,131,361 1,262,000 1,448,203 1,945,158 (186,203) -8.7% 2024 1,945,158 1,523,700 1,595,198 1,873,660 (71,498) -3.7% 2025 1,873,660 1,674,750 1,748,891 1,799,519 (74,141) -4.0% Risk Management 2022 3,174,590 2,331,781 2,197,481 3,308,891 134,300 4.2% 2023 3,308,891 1,107,240 1,108,061 3,308,070 (821) 0.0% 2024 3,308,070 3,359,970 2,728,628 3,939,412 631,342 19.1%Building fund balance for budget overages 2025 3,939,412 4,234,987 2,916,510 5,257,889 1,318,477 33.5%Building fund balance for budget overages Equipment 2022 222,094 2,013,277 1,909,269 326,102 104,008 46.8%Building fund balance for budget overages Operations 2023 326,102 2,055,684 2,021,489 360,297 34,195 10.5%Building fund balance for budget overages 2024 360,297 2,239,618 2,189,464 410,451 50,154 13.9%Building fund balance for budget overages 2025 410,451 2,331,113 2,275,327 466,237 55,786 13.6%Building fund balance for budget overages Information 2022 339,214 2,111,872 2,073,723 377,362 38,149 11.2%Building fund balance for budget overages Technology 2023 377,362 2,421,160 2,240,798 557,724 180,362 47.8%Building fund balance for budget overages 2024 557,724 2,861,381 2,860,043 559,062 1,338 0.2% 2025 559,062 2,626,322 3,074,168 111,216 (447,846) -80.1%Operating exepenses projected to exceed revenues Facilities 2022 405,393 1,395,835 1,460,929 340,299 (65,093) -16.1%Increased cost of operations Management 2023 340,299 1,407,108 1,399,636 347,771 7,472 2.2% 2024 347,771 1,459,020 1,417,242 389,549 41,778 12.0%Building fund balance for budget overages 2025 389,549 1,528,075 1,478,503 439,121 49,572 12.7%Building fund balance for budget overages 110 Strong Foundation Reliable Service Livable City Better Together Appendices 111 Basis of Accounting and Basis of Budgeting Basis of Accounting The City’s basis of accounting is consistent with Generally Accepted Accounting Principles (GAAP). For the Governmental Funds such as the general fund and special revenue funds, a modified accrual basis of accounting is used which means that revenues considered to be both measurable and available for funding current appropriations are recognized when earned. Measurable means the amount of the transaction can be determined and available means that it is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include property taxes, special assessments, intergovernmental revenues, charges for services and interest on investments. Revenues that are not susceptible to accrual include fees and miscellaneous revenues that are only recorded as received because they are not measurable until collected. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt, which is recognized when due. Also, in accordance with GAAP, Proprietary Funds such as the enterprise funds use the full accrual basis of accounting. Revenues are recognized when earned, and expenses are recorded at the time liabilities are incurred. For example, unbilled utility service receivables are recorded at year-end in the Utility Enterprise Funds. Basis of Budgeting For the general fund and special revenue funds, the City uses the same modified accrual basis of budging as the basis of accounting. For the enterprise and internal service funds, the City uses the full accrual basis of accounting with the following exceptions to ensure that there are adequate liquid assets (cash on hand or assets that can be readily converted to cash) available for short-term and long-term expenses: •Capital Outlay – The budgetary basis for enterprise and internal service funds includes expenses for capital outlay, which are not considered expenses in the full accrual basis of accounting. In full accrual basis accounting, capital is put on the balance sheet as an asset and then recognized as depreciation expense over the life of the asset. •Depreciation and amortization – The budgetary basis for enterprise and internal service funds does not include depreciation or amortization which are considered expenses on the full accrual basis of accounting, but not for budget since these items do not require a cash outlay. •Bond proceeds and debt service payments – The enterprise and internal service fund budgets reflect bond proceeds as revenues when the actual cash is received from selling bonds and recognize the expense for principal debt service payments when the payments are made. For full accrual basis accounting, bond proceeds are not recorded as a revenue, but as a long-term liability and debt service payments are not recorded as an expense, but as a reduction of the long-term liability. 112 Financial 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 (personnel services, contractual services, commodities, and internal 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. Monitoring – Department directors are responsible for the 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. 113 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. 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 the assigned fund balance in the general fund for compensated absences of 40 percent 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 to 47 percent of the subsequent year’s budgeted tax revenue. If the 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. 114 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. The City will develop a five-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 four 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 general obligation (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 two percent 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 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. 115 Debt structuring – The City’s collective debt shall amortize at least 50 percent 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. 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 percent of the City’s total debt obligations. Refunding – Current refunding bonds may be utilized when present value savings of three percent 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 four percent of refunded principal is achieved. Adopted by City Council February 20, 2007 Revisions: March 20, 2007 December 15, 2009 December 20, 2011 116 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 12 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 the levy funds and funds donated to the City for the purpose of enhancing public arts and culture related activities. •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. •Opioid Epidemic Response Fund – This fund was established to account for funds that will be received over the next 18 years for the City’s share of national settlement agreements with several pharmaceutical companies related to opioid sales and distribution. These funds are restricted to use for opioid epidemic response activities. •Federal Award Pass-thru Fund – This special revenue fund was established in 2023 to account for federal pass-thru funding received. 117 •Public Safety Fund – This fund was created in 2023. The 2023 omnibus tax bill included $210 million in one- time public safety aid to cities across the state. Unlike local government aid, this aid cannot be used for general purposes, but instead must be used to “provide public safety.” The City received $2,344,327 on December 26, 2023. •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. 118 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, like 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 13 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 (18-hole championship course), a 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. 119 Glossary 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 percent of a household’s income is spent on housing costs. For rental programs, the target is generally to serve households with incomes at or below 60 percent of the Area Median Income for Hennepin County. For ownership programs, the target is to generally serve households with incomes at or below 120 percent of Area Median Income for Hennepin County. Amortization – An accounting technique to periodically lower the book value of a loan or intangible asset over a set time period. 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. American Rescue Plan Act (ARPA) – 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 equal to the price that a property would command under competitive, open-market conditions, at the time the property is assessed. The City’s Assessing Division 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 can produce 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. 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. 120 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 the 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) – a stimulus bill in response to the COVID-19 pandemic. 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 started in 1974. This program 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. 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 Energy and CenterPoint Energy 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 coronavirus 2. 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. Deficit – May be used when discussing an entity’s balance sheet where liabilities exceed assets or when discussing an entity’s income statement where expenditures or expenses exceed revenues during an accounting period. Department – Basic organizational unit of city government responsible for carrying out related functions. Larger departments are subdivided into divisions. 121 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. Division – Basic organizational unit of city government that is functionally unique in its service delivery. Larger departments are subdivided into divisions. Energy Use Index (EUI) – A measurement of a building’s energy use as a function of its size (square feet). It is calculated 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 within the City’s borders. The City of Edina currently receives franchise fee revenue from Comcast Cable, Xcel Energy, and CenterPoint Energy. Estimated market value – Represents the selling price of a property if it were on the market. Estimated market value is converted to tax capacity before property taxes are levied. 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, finance 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, 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 receive a distribution of property value from the pool based on market value and population in each city. Fund balance – Difference between fund assets and fund liabilities (the equity) in governmental funds. Fund balances will be classified as reserved or unreserved. Reserved fund balance – Legally segregated for a specific use. They are not available for discretionary appropriation. Unreserved fund balance – The portion of fund balance that is not reserved. Represents resources that can be used for any purpose of the fund they are reported in. Designated funds – Funds with tentative plans for, or restrictions on, the future use of financial resources. Undesignated fund balance – The funds remaining after reduction for reserved and designated balances. In addition, many of the special funds have restricted use, depending on the legal restrictions governing the levy of the funds they contain. Examples are the Debt Service Fund and the Capital Project Fund. 122 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 basic activities of the City including administration, human resources, communications, information technology finance, community development, parks and recreation, police, fire, engineering and public works departments. 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. 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). 123 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 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 does not qualify for 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. M – Represents million(s). 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 Annual Comprehensive 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 in a given market. 124 Modified accrual basis – Under the modified accrual basis of accounting, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the time a liability is incurred pursuant to appropriation authority. 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. Ordinances – 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 Energy and CenterPoint Energy 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 received during a period, 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. 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 nine special revenue funds: HRA, PACS, CAS, CDBG, Police, Braemar Memorial, Arts and Culture, Opioid Epidemic Response and Federal Award Pass-thru. State general property tax – The State of Minnesota imposes property taxes on commercial, industrial, and seasonal recreational properties. Subsidize/subsidy – An act of financially supporting a fund, organization, or activity. 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 life stations, water treatment plants, and water towers. 125 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’s Assessing Division 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 the use of TIF is governed by Minnesota State Law. Truth-In-Taxation – Procedures adopted by the 1989 Minnesota Legislature intended to improve accountability in the adoption of the budget and property tax levy of local governments. 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. 126