HomeMy WebLinkAbout7.a. Adopt Key Financial Strategies PlanCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
City Council Meeting Date DECEMBER 21, 2004
AGENDA ITEM: ADOPT KEY FINANCIAL STRATEGIES
PLAN DOCUMENT
AGENDA SECTION:
Business
PREPARED BY: JAMIE VERBRUGGE, CITY ADM IN
AGENO; 7
ATTACHMENTS: KFS Plan
APPROVED BY
RECOMMENDED ACTION: TO ADOPT THE KEY FINANCIAL STRATEGIES
PLANNING DOCUMENT
ACTION:
BACKGROUND
The City retained the financial consulting firm of Ehlers Associates in 2003 to engage in a
strategic goals and financial planning process known as Key Financial Strategies The City
Council met on a number of occasions to work through the development stage of the
process That process concluded in summer 2004 Over the past several months, the
Council and staff have reviewed draft versions of the plan The document has been prepared
in final form to be readable and easy to follow
ISSUE
The Key Financial Strategies approach combines the community goals process, evaluation of
City services, identification of future issues and needs, and financial planning The plan is
intended to be used as a living document that will constantly evolve as issues and goals are
identified The plan is intended to help the City Council consider individual issues in the
much larger context of City services, taxes, community character, and future trends A
number of items in the plan remain to be fully defined in terms of financial implications and
timelines As the staff works with the City Council over the course of the next year, these
issues will be clarified and more definition provided
SUMMARY
The KFS document will be utilized by the City Council going forward in its short- and long-
term planning and goal setting Staff intends to rely heavily on KFS beginning immediately in
2005 when the City Council begins discussing goals for the next couple years and begins the
budget planning process This document is intended to offer a broad policy process for
decision making
Adoption of the plan and continued utilization is a significant accomplishment as part of the
City Council's goal of maintaining a Fiscally Healthy City
FREERS
ASSOCIATES INC
KEY FINANCIAL STRATEGIES
EXECUTIVE SUMMARY
Key Financial Strategies is a process that combines financial planning with strategic planning Its primary purpose is to
provide a disciplined framework for decision making required to identify and implement strategies that will assure long-
term community viability This is especially important for communities like Rosemount that face the dual tasks of
preparing for future development for a community with a very large physical size (nearly 36 square miles) while preserving
the foundation of a mature, developed community Long -term viability also reflects the fact that value of current assets
owned by residents and other property owners is directly linked to the ability to prepare the community for future residents
and investors
Rosemount is a well- managed city that has developed and maintained sound fiscal policies in the areas of budgeting,
fund balances, and debt management The strong Al credit rating reflects the results of this management and the
strength of the local tax base The principles guiding the community financially reflect a commitment to maintain its
financial stability, maintain service levels based upon community standards, maintain the community infrastructure
(streets, sidewalks, lighting, utility systems, etc and to provide additional services and investments based on the needs
of current and future residents within the context of community affordability and without sacrificing the ability to maintain
current operations
The financial projects prepared as part of the KFS plan project that the City of Rosemount will be able to maintain these
principles with careful attention to the financial planning process This process requires a specific commitment to
reviewing and updating this financial plan on an annual basis with a focus on the following
Review of Staff prepared projections for the cost to maintain current level of services given projected growth
Review of investments (capital costs) required to maintain current facilities
Analysis of the impact of adding new services and facilities on tax rate and fees
Periodic surveys to determine public assessment of the value and need for the current level of services
Identification of a select number of new goals and initiatives for needs assessment, study, or implementation
Direction to Staff to prepare specific strategies for future years
KEY FINANCIAL STRATEGIES
OVERVIEW
Ehlers Associates was engaged by the City of Rosemount, Minnesota (the "City to assist in the preparation of the
City's Key Financial Strategies The need to create a comprehensive financial management plan was identified by the
City Mayor, Council, Administrator, and Staff due to growing demands for financial resources This strategic financial plan
is the result of five workshops with the Council and many hours of Staff consultation Workshops focused on identifying
potential financial needs of the City, reviewing financial projections, and discussing priorities for the community The
results from those sessions have been incorporated into this plan document In addition, the City Council has conducted
an annual goal setting session to help frame issues of importance to the community The Council Goals document will be
attached annually as an appendix to this report
OBJECTIVES FOR THE FINANCIAL PLANNING PROCESS
A financial plan is a necessary element of a City strategy to remain competitive in today's demanding environment Other
objectives of the City's Key Financial Strategies are
Establishing a common understanding among the elected officials and Staff of the City's needs and financial
capacity
Developing a comprehensive view of financial resources and options
Identifying City issues and opportunities.
Creating a framework in which elected officials and Staff can make immediate and long -term investment decisions
Developing a consensus among the elected officials and Staff on key actions the City will take to remain
competitive
Meeting the new standard presented in the Governmental Accounting Standards Board Regulation 34, including its
capital planning provisions
Through this workshop process, the City Council has examined the current and future ability to meet these objectives to
answer the question "How do we get there The City's Key Financial Strategies will provide a road map into the future
and a framework for future decision making
FINDINGS
The financial assessment conducted of the City was divided into seven Strategic Focus Areas.
1: Community goals /initiatives
2: Local tax base
3: Financial position
4: City owned infrastructure
5: Competitiveness
6: Credit position
7: Enterprise funds
As part of the financial assessment, a number of findings were presented within the workshops These findings are
outlined in more detail within this report
'ING 1: COMMUNITY GOALS /INITIATIVES
Establish a strategic profile including comm unity (purpose), goals (means to achieve the purpose), and
strategies (directed at accomplishing goals); which are essential to the efficient and effective use of scarce City
resources.
Important Initiatives City officials have identified several initiatives as part of this financial planning process. Key
issues include
Economic and Community Development
o Downtown revitalization
o Restaurants and other destination uses
o Community marketing and enhanced communications
Maintaining City Infrastructure
o Street and utility maintenance
o Park maintenance
Vehicle and mayor equipment replacement
Water system improvements
Enhance and Protect City Environment
o Address land use planning related to Flint Hills Refinery and UMORE Park
o Open space planning and preservation
Managing Growth
o Future staffing issues
o Comprehensive Plan update /MUSA expansion
o Improving City services
o City Hall Expansion
Explore support for new City facilities
Athletic complex
County library
Aquatic facility
o Second ice sheet
o Arts culture center
o Community activity center (Seniors[TeensNouth)
Im
The City has identified a significant agenda for future needs Developing a mechanism to prioritize needs regularly,
develop implementation programs (including resource requirements) and evaluate the City's capacity to implement
the programs should be a high priority Given this aggressive agenda it will be important to manage the time
required for the Council to make the required policy decisions needed to implement the strategies A disciplined
approach to selecting a manageable number of strategies should be a priority Financial strategies should also
include direction regarding the nature of activities to be undertaken for each issue including
Assessing need for services or facilities
Studying alternatives, methods, and cost and funding sources for implementation
ImnipmPntntinn
Facility Options City officials are looking at options for public facilities City hall expansion, public works facility expansion, fire
station #2, and a variety of other needs
Implication:
Involving the public with this process will be key to bringing this issue to the implementation phase Careful
consideration should be given to the funding options and impacts (including not lust construction but also ongoing
operating costs) While there are some issues affecting the timing of these decisions it is essential that public
and support be
Technology Ever growing demands for Staff services and the need for City departments to work together require
ongoing investments in computers and technology
Implication:
Further enhancements to the City's information technology systems may require financial support from the City's
General Fund There will be more and better technology products available to cities Residents, customers, and
employees will likely create pressure to invest in improved and new technology This will require the City to develop
a disciplined approach to reviewing the requests and needs for technology investments That approach should
address cost and benefits (not limited to financial) productivity, training supp and potential obsolescence
RECOMMENDATIONS
If
1 Community Goals /Initiatives
1.1 GOAL SETTING:
The Mayor and City Council should continue annual goal setting sessions, prior to budget preparation The
goal setting session should prioritize needs This information should be used by Staff to develop programs,
service options, and resource requirements, for consideration within the budget process The goals should
specifically address the major issue categories
Comment Staff recommends that the City Council consider conducting future goal setting sessions in May of
each year when departments are beginning the budget preparation process Financial strategies should be
incorporated into the annual goal setting program
1.2 FACILITY NEEDS:
The City should continue the deliberate and careful approach to addressing facility needs for future growth,
reinvestment, and quality of life services and capital investments
Comment Construction of Fire Station #2 is planned in 2005 and debt service obligations related to this
project are included in budget forecasts for 2006. Staff will be presenting the City Council with information
that may lead to a Space Needs Study for the Public Works Facility and City Hall Additionally, the Facilities
Task Force has made recommendations for desired investment in future recreational and cultural facilities.
Council should prioritize elements within the Task Force report and regularly revisit the issue to continue
planning for the future
1.3 FINANCIAL STRATEGIES COMMUNICATION PLAN:
A communications plan should be developed in order to inform and seek community feedback on important
financial issues including future needs and financial constraints The plan should also forecast the process
that will be used to seek community participation for significant community investment decisions
Conducting a community survey will help identify the types of services vital to attract and retain residents
Consideration should be given to expanding the survey to collect information regarding improving the City's
competitive position, economic development, quality of life, school funding inequity, and possible
intergovernmental tax sharing solutions.
Comment City Council has directed Staff to develop a Communications Plan for the City to accomplish many
of the objectives detailed above Funding for a resident survey has been included in budget
recommendations for 2005 Additionally, Staff will incorporate the "Funding Public Facilities Public
Participation Process" model in City facilities planning
1.4 TECHNOLOGY PLAN:
The City should consider developing a technology plan with projected needs within the next five years The
plan should also include a basis for evaluating requests for technology investments that address cost and
benefits (not limited to financial), productivity, training, support, potential obsolescence, and funding source.
Comment.
1.5 IMPLEMENTATION PLAN:
Annual budgets should be prepared with budget options of at least 10% of total budget expenditures Budget
presentations should be supported with a balance of input and resources and outcome materials
Comment
1.6 FUNDING AND OPERATIONS:
Comment:
FINDING 2: LOCAL TAX BASE_
Structure,- qua lity a nds¢ e of a_community's tax base affect its ability to fund services and investments.
Development Approximately 31 of Rosemount is within the current and future Metropolitan Urban Service Area
(MUSA) hne Of this 31%, approximately 60% is developed The City has reached roughly 61% of the 2020 Met Council-
projected population of 31,370 How the community completes development will affect its future
Implication:
The City will add additional residents and businesses to its population and will face new and additional requests for
future services as demographics and resident interests change It will also face the need to address reinvestment in
existing facilities Understanding the dual impacts of new service requests by existing residents and of the need to
service additional new residents will be a key to future planning
Market Value City market value of $1.6 billion has been increasing steadily by an average of 17 1 per year over the
past five years The City has a good per capita market value of $84,000
Implication:
The high per capita market value provides good opportunity for revenue diversification The tax rate should be
evaluated in terms of which rate creates the outcomes that the City seeks for itself The tax rate should be set in
conjunction with both the budget and the yearly costs identified in the capital plan
Diverse tax base The City has a tax base with 83% residential and 17% commercial /industrial /other Commercial and
industrial properties represent 12% of the tax base The remaining 5% in other classifications includes apartments,
utilities, railroads, agriculture, and personal property
Implication:
Tax base diversification is a focus to achieve stability in City services requirements and property tax production
Continued effort should be made towards a ratio of residential to commercial /industrial base with a target range of
67% to 75% residential and 25% to 33% commerciallindustrial
Economic Development Policy The City has provided economic development incentives in the form of tax increment
financing
Implication:
Previously the City used economic development incentives to attract targeted development This strategy has
contributed to the level of tax base diversification that exists today To encourage continued balanced community
growth, the City will consider appropriate strategies such as use of tax increment financing and tax abatement for
financial assistance if necessary
RECOMMENDATIONS
Local Tax Base
2.1 BALANCED DEVELOPMENT:
Growth planning should address continued attention to balancing commercial and residential development
Special attention should be paid to increasing the amount of commercial industrial (C -1) development and to
assessing housing types that reflect lifecycle, financial ranges and lifestyle choices
Comment City Council has directed Staff to begin looking at the CR42 corridor and MUSA expansion
opportunities to plan adequately for future commercial and residential growth potential.
2.2 PUBLIC SUBSIDY POLICY:
The use of public subsidies to assist with encouraging the type of development needed to maintain
community competitiveness and balanced tax base should be continued where it meets the goals and
objectives of the community The public assistance policy should be reviewed to assure flexibility to meet
broad based community needs
The City Council and Port Authority should evaluate the need for affordable housing in the community to
attract and maintain a residential population that encourages a professional, technical, and trades related
workforce The Council and Authority should discuss appropriate methods for investment in this area.
Comment The Port Authority recently updated the Business Subsidies Policy Additional attention should
10
be paid to targeted investment by the City The City Council and Port Authority are pursuing opportunities
for the Dakota County Community Development Agency to develop affordable family housing, and have
indicated an interest in incorporating affordable elements in redevelopment plans for the former Brockway
site and the Downtown Redevelopment District
2.3 ZONING ORDINANCE:
Comment
2.4 OPEN -SPACE PRESERVATION:
Comment
11
FINDING 3 FINANCIAL POSITION
�Availabihty of funds to meet current and future needs, adequate fund- balances for cash flow purposes and to=
@t emergency needs- requires planning and discipline==
Fund Balance Policy Effective past financial management practices have left the City with a solid undesignated,
unreserved fund balance within the General Fund, Water and Sewer Fund, and Storm Sewer Fund The City Council
recently adopted a Fund Balance Policy that aims to maintain General Fund reserves at 55% of annual adopted budget
figures.
Implication
The City's General Fund Balance remains strong Changes in State tax structure and potential capital protect costs
indicate the need to continue to monitor carefully the fund balance
Tax Rate The City faces growing demand and cost to provide services with limited ability to increase short-term tax
base
Implication
The competitive position of the City tax rate will affect the City's ability to increase operating expenses without an
offsetting increase in non-property tax revenues
Risk Management The City has developed effective loss reduction strategies (accident review and safety committee).
Additional risk management efforts (including review of risk retention levels, deductibles, and funding of loss reserves)
may be warranted
Implication
Additional development of risk management policies will help reduce exposure to financial risks Over the long run,
an effective risk management policy will reduce unbudgeted costs for loss reimbursement and increased insurance
costs
12
RECOMMENDATIONS
Eu
_3.0 Financial Position
3.1 FUND BALANCE POLICY:
The City Council should consider a Fund Balance Policy for the Special Revenue Funds, Debt Service Funds,
Capital Project Funds, Enterprise Funds, and Internal Service Funds
Comment
3.2 ALTERNATIVE REVENUE SOURCES:
City Staff should prepare an alternative revenue source report for the City Council These options should be
reviewed annually as part of the Key Financial Strategies update
Comment
3.3 USER FEES:
The City should continue to adjust all user fees and utility rates on an annual basis to reflect changes in the
cost of services.
Comment
3.4 ASSESSMENTS:
The City should review assessment practices to include pavement management cost recovery through
special assessments to benefiting property owners (i a increasing assessments to property owners and
including street maintenance such as crack sealing) and to address increased cost of pavement management
projects
Comment.
13
3.5 DEVELOPMENT FEES:
The City should continue annual evaluation of development fees to reflect the City's cost of services
Comment
3.6 FINANCIAL STRATEGIES AND GOALS:
The City should use this report as part of its annual goal setting framework
Comment
3.7 DEBT MANAGEMENT PLAN:
Comment
3.8 INVESTMENT POLICY:
Comment
3.9 STATE BUDGET CUTS:
Comment.
3.10 BUDGET OPTIONS ANALYSIS:
Comment
15
F�NDtNG 4: CITY OWNED INFRASTRUCTURE
v Co munities need regularly to invest and reinvest m theiryinfrastructure (roads buildmgs,_parks, etc) x
Regular deferral of investment canlead to fiscal stress and community_ dismvestments
r
Pavement Management The City has maintained a street reconstruction program since 2003 The City Council has
recently reviewed a Pavement Management System and is considering increasing funding levels in light of its importance
to maintaining current levels of service and as part of the 2005 budgeting process
Implication
Overall the streets are in acceptable condition, but an increased annual investment will be needed to maintain
streets at an acceptable level Progress on maintenance should be carefully monitored
Municipal Facilities The City is reviewing City Hall and Public Works facility needs It is intended that facility needs will
be addressed at the same time as a proposed Fire Station #2 is addressed
Implication
The City has initiated a plan to review the need for reinvestment in these facilities
Community Involvement Potential need for reinvestment in public facilities infrastructure needs may increase the
property tax above the normal inflationary increase The City has major investments to protect in buildings, utility
systems, streets, lighting systems, and related improvements
Implication
Community involvement will be key to addressing the need for major investments The City should undertake a
public participation process to involve the community in understanding and selecting options Preparing plans and
schedules for anticipated required maintenance and replacement will provide information necessary for financial
16
Equipment The City has extensive vehicle replacement requirements for Public Works, Police, and Fire equipment
The City has a schedule of equipment replacement as part of the ten -year Capital Improvement Plan (CIP) that forecasts
these needs for the expected life of the equipment
Implication
Equipment replacement is often deferred as part of budget balancing efforts In the long term this may increase
maintenance costs, increase downtime of equipment and Staff, and lead to a funding problem in future years
Maintaining the equipment replacement schedule and funding source will help remedy this problem and provide a
more accurate measure of services
RECOMMENDATIONS
4 g
City Owned Infrastructure
IFF
4.1 EQUIPMENT FUNDING:
The Administrator and Finance Director should review the final list of items that were recommended as part
of the vehicle /equipment replacement program and develop a funding program to provide a more level
annual replacement contribution The City should evaluate an internally funded equipment rental program
that could potentially level out annual replacement costs
Comment
4.2 ANNUAL CIP:
Comment
4.3 MAINTENANCE:
The City should prepare a non annual recurring maintenance schedule for City facilities
17
Comment
is
FINDING 5: COMPETITIVENESS
Communities compete for people to live, work, and do business. Understanding and responding to the elements of
competition is an important role for -the City
Property Tax Rate The City's overall tax rate is relatively high compared with comparable communities in the
metropolitan area
Implication
Given the tax rate and the high level of services, the City is carefully monitoring its tax rates Community growth,
combined with the desire to maintain current service levels and the need to reinvest in existing infrastructure, will
continue to present challenges to the City as it attempts to moderate its tax rate
Service Levels The City offers a full complement of services to residents and businesses
Implication
Services offered by the City appear to be consistent and competitive with surrounding communities
Public and Private Maintenance Rosemount is generally well maintained, both in the area of public investments and
private property, with no signs of patterned disinvestment or deterioration
Implication
Careful attention should be paid to monitoring the condition of public and private property
19
Recreation Rosemount's open space and trail system appear to be equal to or greater than those of many other
communities in the metropolitan area Funding for maintenance of the trails system is included in the Pedestrian
Improvement Plan within the General Fund.
Implication
Planning and investments in these areas have provided a sound foundation for creating a community with amenities
that will attract and retain residents, visitors, and businesses Careful attention should be paid to the operating costs
of recreation and cultural amenities Community involvement in discussions regarding the cost to build and maintain
new faciliti will be a key factor for future considerations
Housing Rosemount has a diversity of housing options that is typical for established communities experiencing new
growth More established neighborhoods of the community are populated with modest houses, typified by 1960s and
1970s ramblers Newer development consists of larger, higher- valued single family houses, as well as a diverse range of
life -cycle attached housing
Implication
A healthy and diverse housing stock increases community marketability for commercial and industrial developments
The City should evaluate the condition and diversity of its existing housing stock Housing reinvestment and
rehabilitation programs should be developed either independently or in cooperation with the Dakota County
Community Development Agency (CDA) A review of zoning and the Comprehensive Plan to provide more options
for diverse housing options is important to maintaining a healthy, balanced residential and business atmosphere
RECOMMENDATIONS
Com etitiveness
5.1 PROPERTY TAX RATES:
The City's tax rate is higher than some comparable communities In managing property taxes, the City will
seek a balance among providing an appropriate level of service, maintaining infrastructure, and affordability
for residents Having the lowest property taxes is not always the final measure of this balance
Comment
5.2 REVENUE ENHANCEMENT:
The City should review and implement a revenue enhancement study for additional revenue options including
utility franchise fees, utility bill preparation fees, and similar alternatives. The information should be prepared
to identify options prior to their need
Comment
5.3 LEVY PROJECTIONS:
Staff should annually prepare three -year projections of tax levies The City Council may consider community
involvement in the long range planning process to build support for the development of resources to achieve
goals the public has supported.
Comment
5.4 INTER GOVERNMENTAL FINANCES:
The City should continue to meet and confer with overlapping local government units (county, schools, etc to
discuss operating and capital funding issues that will affect residents' overall taxes
Comment
5.5 BUDGET PROJECTIONS:
In order to provide direction to Staff, the Mayor and City Council should review and select the appropriate
items from the Budget Option Impact Worksheets that will be included in the next year's budget This budget
should then be constructed by balancing resources with current and future needs.
Comment
21
5.6 STRATEGY REVIEWS:
The Financial Strategies should be reviewed and updated annually as part of the City's budget process The
City Council should annually agree that the three priorities for budget adoption are (1) maintaining fiscal
health, (2) maintaining City services at existing levels or higher, and (3) providing community amenities where
possible and when they do not adversely affect items (1) and (2)
Comment
5.7 BUDGET OPTIONS:
Annual budgets should include budget option analysis for 5% to 10% of total projected expenditures Budget
presentations and discussions should be supported with a balance of input/resources and outcome options
Comment
5.8 RISK MANAGEMENT:
The City should evaluate its risk management program and make improvements where necessary. Additional
effort to reduce risk exposure including review of retention levels, deductible levels, and funding of reserves
for retained risks should be undertaken
Comment
5.9 ANNEXATION:
Comment
5.10 LAND CONVERSION:
Comment.
23
INDING 6" CREDIT POSITION=
"Maintaining a strong cred�traf helps reduce fhe oc5st cif borrowing required to develop and maintain the
�ommunit
Credit Rating --The City is rated "Al" by Moody's Investors Service This is an above average rating reflecting the City's
strong property value growth and maintenance of a strong financial position while supporting debt required for future
growth and reinvestment in infrastructure
Implication
This strong credit rating has helped the City successfully issue debt at very competitive interest rates in the
commercial marketplace
Debt Burden The City's debt burden is moderate (1 9% direct and 3 5% total), but reflects community growth needs
and overlapping debt of other governmental units Eighty -two percent (82 of the City's debt will be paid off in ten years
Additionally, none of the currently issued debt is General Fund debt
Implication
Careful attention should be paid to "mapping" out future debt issues for the next five to ten years An aggressive
debt repayment schedule will enable the City to continue to invest as needed The City should additionally
evaluate the extent that General Fund debt service of projects presents a strategic alternative to cash fronting or
internally financing services and amenities
Fund Balance The City currently has a prudent undesignated fund balance
Implication
This strong fund reserve helps the City to maintain its current rating The City should be careful to maintain this
strong fund balance
24
RECOMMENDATIONS
6.0
Credit Position
6.1 FINANCIAL STRATEGIES:
The approval of Key Financial Strategies by the Mayor and City Council will help document the future City
plan to Moody's Investors Service
Comment
6.2 BOND MATURITIES:
The City should endeavor to keep the total maturity length of general obligation bonds below 20 years and
at least 50% of the principal shall be retired within ten years In all cases, the maturity shall be shorter than
the life of the related assets
Comment.
6.3 ALTERNATIVE REVENUE SOURCES:
The City should work to minimize the amount of debt supported by property taxes and will seek additional
use of special assessments, utility revenues, and other non -tax sources to support debt.
Comment
6.4 DEBT REDUCTION:
City Staff, working with the City's independent financial advisor, shall monitor outstanding debt and advise
the City Council on ways to reduce the debt burden through refinancing at lower interest rates and the early
retirement of bonds
Comment
25
6.5 DEBT SERVICE POLICY:
Comment
26
"FINDING 7: ENTERPRISE FUNDS
Operating enterprise funds as a business is key to a transfer of the burden of operational cost to
general taxpayers In addition some enterprise operations can help reduce the cost of general government.
Implication
The City currently updates its utility rates on a regular basis and charges General Fund service costs to the
enterprise funds Both are examples of best practices for enterprise management These practices should be
continued as part of ongoing financial strategies
RECOMMENDATIONS
`?•0 Enterprise Funds
7.1 RATE REVIEW:
Annually, the Administrator, Finance Director, and related Staff should continue to review and recommend
necessary adjustments to water and sewer rates sufficient to recover cost of operations and provide for
capital needs for consideration by the Mayor and City Council
Comment
7.2 EXPENSE ALLOCATION:
City Staff should continue to review annually the cost of general fund services provided to enterprise
activities including insurance, financial and accounting services, management, legal, and related expenses
These costs should be evaluated by the City Council for inclusion in the rates for enterprise services
Comment
7.3 WATER QUALITY:
City Staff should identify the costs to meet mandated water quality standards and the impact on water rates
27
Comment.
means missing data
means contradicting data
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
77=
GoaWinitiatives
1 JCouncil
Goal Setting
Annual
1.2 lFacility
Needs
Facilities Task Force
2004
2005
4/1
recommendations
Develop an arts and
2008-2009
$500,000
Assess
Community Facilities Task Force
culture center
second
2006
$5,000
$2,000,000
Assess
Community Facilities Task Force
I Develop
sheet of ice
I Develop a teen center
$300,000
Assess
Community Facilities Task Force
senior
200 or
$24,000
Implement
Community Facilities Task Force
1 Add
coordinator (PT)
2006
Conduct feasibility
2005
$5,000 to
Study
Community Facilities Task Force
study of water
$7,000
park/aquatic facility
Skate park expansion
2005
2005
NC
$40,000
Implement
4/1
an athletic
2006
2007
T5 ,000
$6,000,000
Plan and
2/1
Land acquisition and project/site
1 Develop
complex
Implement
Mannino
Downtown
2004-10
Ongoing
Policy
Plan and
1/1
Start redevelopment project by 2005
redevelopment
discussion
Implement
Council direction as to whether general
funds should be used or only other
lsources
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Library land planning
2004
2004
$30,000
$2,400,000
Assess
III
Three sites have been identified as
potential library locations Acquisition
cost estimates vary depending upon
final determination and negotiation of
preferred site Site planning and site
assessment underway for preferred
site
Pedestrian Facility
2004
2004
$30,000
$130,000
Assess
2/A
Plan currently being developed and
Maintenance and
scheduled to be complete for Council
Improvement Plan
adoption in 2004 Final plan will
identify funding requirements to meet
schedule Current budget line item is
$135,000
1.3
Financial Strategies
Communication Plan
Develop customer
service feedback
systems for key City
services
Conduct community
2005
2005
2/1
isurvey
plan
R IAITechnology
1 5
Implementation Plan
10% budget option
6 r
a
Funding and
Ooerations
Activity
Protected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Maintain current level
2004
7
$2,000
Complete
7
Maintain appropriate staffing levels for
of service in Building
building inspectors Train inspector for
Division
septic inspector certification
Community
2004
7
Staff time
Assess
I?
Complete review of departmental
Development
organization and develop policies for
Department Review
operation This review is dependant
on availability of staff The
development of policies for operation
will assist with the identification of
additional staff, equipment and
materials as the City continues to
develo
Public
2004
7
Assess
7
Complete review of departmental
Works /Engineering
organization and develop policies for
Department Review
operation This review is dependant
on availability of staff The
development of policies for operation
will assist with the identification of
additional staff, equipment and
materials as the City continues to
develo
Local-T Base- w
77777
2.1
Balanced
Development
Development plan for
2004
2005
$50,000
Assess
1/S
Review land use and utility needs,
Hwy 52 /Co Rd 42
update Water Distribution Plan (listed
construction
under engineering KFS worksheet for
Water Treatment Facility $90,000)
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Construction of Hwy
2008
7
$300,000
$1,500,000
7
7
County CIP identifies design in 2008,
52 /Co Road 42
construction in 2009
Review
2005
2005
Staff time
Assess and
_3 /S
Review potential MUSA Expansion
Comprehensive Plan
Adopt
Areas Submit Comprehensive Plan
Amendments MUSA
Changes
revisions to Planning Commission, City
Expansion and other
Council, and Metropolitan Council for
MUSA issues,
review and adoption (Council time 2
wastewater issues
hours)
Comprehensive Plan
2008? 2006?
2008?
Staff time
Plan
1/1
To carry out state mandate to have
Update -State
Develop-
updated Comprehensive Plan as
Mandate
ment_
required Council reviews at each work
session
22
Public Subsidy Policy
2004
2004
4/A
Update
23
Zoning Ordinance
2004 -09
Staff time
Assess and
7
Staff will continue to assess zoning
Draft
ordinance and draft amendments as
needed to implement comprehensive
Ian and address outstanding issues
24
Open -Space
2004
$100,000
Implement
Wikland Property funding available
Preservation
through State and County City
purchasing easement
3. r_
Financia PbSlti0rl
3 1
Fund Balance Policy
9
Consider
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
32
Alternative Revenue
2005
2005
Staff time
Assess
2/S
Staff will continue to explore the
Sources
extremely sensitive area of franchise
fees as we continue to pursue
alternative revenue sources
33
User Fees
2003
Already paid
Implement
7
Establish /Update User Charge Policy
($4,000 fee
City fees were evaluated in 2002/03
for annual
and the new fees were implemented in
updates)
September 2003 The fees were
reevaluated at the end of 2003 with
modifications made for the 2004 Fee
Resolution at the end of December
The fees will be evaluated on an
annual basis
34
Assessments
Annual
Annual
7
1/S
Review assessment practice to
address pavement management
35
Development Fees
7
7
Evaluate Development fees to reflect
cost of services
36
Financial Strategies
Use KFS in goal setting
and Goals
37
Debt Management
2005? 2004?
2004?
Staff time
Implement
2/A
The City has a Debt Management
Plan
Policy that was adopted in August
2000 This policy may need to be
updated to allow the KFS plan to be
im lemented
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
3.8
Investment Policy
2005? 2004?
7
Staff time
Implement
2/A
The City has an Investment Policy that
has been in place since 1996 The
policy should be reviewed on occasion
3 9
State Budget Cuts
2003 -04
7
Staff time
Implement
7
Evaluate effects of State Budget cuts
budget cuts were addressed in 2003 to
compensate for losses in aid of
$750,000 The 2004 budgets also
reflect losses in aid of $750,000
310
Budget Option
2003
7
Staff time
Implement
7
Complete budget option analysis and
Analysis
determine where excess funds will be
directed Staff developed a Fund
Balance Policy that was approved in
December 2003 that addresses how to
handle excess fund balances
311
Administration
9
9
9
Review administration expenses
Expenses
completed with Fee Study and
reflected updates in 2004 Budget
4
City
infr astructure
ERA
41
Equipment Funding
2006
2007
1/S
Prepare funding options for major
equipment sources
Activity
Projected
Projected'
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Plan to replace fire
2005
2005
7
2/g
equipment
Radio
2004
7
Paid in 2003
Assess
2/S
Work Group formed in 2003 Dakota
communications
($1,725)
County and municipalities signed
infrastructure (1)
working agreement State study being
done on consolidation of PSAPs and
best practices Also, Metropolitan
Radio Board has suggested funding
incentives to transition to 800 MHZ
Radio
2005
7
Plan
7
Design group is working on county
communications
wide implementation Dakota County
infrastructure (2)
and the agencies it dispatches will
implement in 2006 Infrastructure
designed to add others later
Radio
2008
$200,000
Implement
7
42
AnnualCIP
Annual
Annual
9
1/I
Pavement
2005
7
$1,500,000
Implement
7
Cost is annual
Management
Program
Identify options for
2004
2005
funding Pavement
Management System
Facility needs
2004
2005
7
2/S
assessment
Fire station
2005
7
$1,900,000
Plan and
7
Im lement
Activity
Protected
Protected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Public Works Facility
2005
7
$25,000
Assess
7
Complete review of facility needs
expansion
Storm Water Outfall
2004
7
Annual lease and
7
Agreement being drafted with MCES
discharge rate
Funding to be from storm water utility
fu nd
North Central Sewer
2004
$40,000
Assess
Plan to be complete in 2004 Plan will
Study
identify costs, funding options and
schedule
43
Maintenance
2005
2006
VS
Prepare non annual recurring
maint enance sche
Recurring
7
7
7
7
maintenance
schedule for facilities
Infrastructure
2005
7
Assess
7
The development of this plan would be
Management and
completed jointly between Public
Replacement Plan
Works Operations and Engineering
The completion of this plan would
require additional staff or
repriontization of existing staff time
Develop plan to
7
7
This includes City Hall and City
deferred
buildings (Bldg Division will work with
maintenance
Public Works) Money is included in
Naddress
CIP
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
51
Property Tax Rates
Annual
Annual
Staff Time
implement
1/S
Property tax review this is an ongoing
process that is dealt with during the
budgeting process on an annual basis
5.2
Revenue
Enhancement
Annual?
2005
2005'?
$20,000
Assess
1/S
Prepare alternate revenue analysis
look at franchise fees, street utility,
street li ht utility, etc
53
Levy Projections
Annual
Annual
Staff Time
Assess
2/S
Prepare (3 -5 year) budget forecasts
including revenue forecasts Review
feasibility of trying to forecast revenues
out 3 years
Identify a limited
Annual
Annual
Staff Time
Assess
2/S
Explore service options
number of selected
services for potential
competitive pricing on
annual basis
Complete analysis of
future staffing needs
Ongoing?
Annual?
Annual?
Staff Time
Implement
1/S
All departments need to look at staffing
needs to maintain a current level of
service
54
Intergovernmental
7
7
Confer with overlapping government
Finances
units on tax issues
5.5
Budget Projections
Annual
Annual
Staff Time
Implement
2/S
Review budget option analysis as part
of budget process Review Fund
Balance Policy on an annual basis
Activity
Projected
Start Date
Projected
Completion
Date
Estimated
Planning
Costs
Estimated
Construction
Costs
Stage
Level/
Status
Comments
5.6
Strategy Reviews
7
7
7
7
Review KFS
5 7
Budget Options
7
7
Budget options for 5% and 10%
5,8
Risk Management
2005 2004?
2005?
$5,000
Implement
2/S
Work with Risk Management
Consultant to develop a formal risk
management policy
5.9
Annexation
2005
2005
Staff time
Assess
3/A
Discuss with City Council future
expansion and annexation plan
im lementation
5,10
11-and Conversion
2005 -06?
2005
2006?
Staff time
Assess and
Draft
21A
Develop strategies for future land
conversions This includes the U of M
p roperty, Flint Hills, etc
5.11
Economic
Development
Marketing Plan
2004
7
$20,000
Plan and
Implement
7
Develop and implement marketing plan
for Economic Development which is in
concert with Port Authority and City
Marketing Plan
F
6.1
Financial Strategies
2004
2004
$20,000
Implement
2/1
Finish process and formally approve
Key Financial Strategies
6.2
Bond Maturities
7
7
7
Limit length of general obligation bond
maturities
63
Alternative Revenue
Sources
7
7
7
Limit amount of debt supported by
p roperty tax
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
6 4
Debt Reduction
7
7
9
Monitor debt to cut interest rates and
retire bonds early
6 5
Debt Service Policy
2004
2005
Staff time
Implement
2/1
Adopt debt service policies as outlined
in Credit section of this report Fund
Balance Policy and Debt Management
Policy previously adopted
Fund balance
Annual
7
Staff time
Implement
7
Review Fund Balance Policy on an
annual basis Staff developed a Fund
Balance Policy that was adopted in
December 2003 and addresses how to
handle excess fund balances
7
Enterprise Funds-
7 1
Rate Review
Annual
Annual
Paid ($4,000
Implement
1/S
Adjust user fees on annual basis to
fee for
reflect changes in cost of services
annual
Our fees were evaluated in 2002/03
updates)
and the new fees were implemented in
September 2003 The fees were
r
reevaluated at the end of 2003 with
k�
modifications made for the 2004 Fee
Resolution at the end of December
The fees will be evaluated on an
annual basis
Activity
Projected
Projected
Estimated
Estimated
Stage
Level/
Comments
Start Date
Completion
Planning
Construction
Status
Date
Costs
Costs
Develop utility rate
2004
7
$10,000
Implement
Water and sewer rate studies were last
policy
done five years ago. City will be doing
a study for water and sewer in 2004
and can try to formalize the
recommendations into a formal policy
72
Expense Allocation
2005
7
Implement
Review General Fund costs for
enterprise services for rate
consideration Our fees were
evaluated in 2002/03 in a rate study
and the new fees were implemented in
September 2003 The fees were
reevaluated at the end of 2003 with
modifications made for the 2004 Fee
Resolution at the end of December
The fees will be evaluated on an
annual basis Part of this study helped
us evaluated how much the Enterprise
Funds should be contributing to the
general operations of the City
7.3
Water Quality
2004
2005
7
11A
Evaluate water treatment
improvements