HomeMy WebLinkAbout2.a. Key Financial StrategiesCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR DISCUSSION
COMMITTEE OF THE WHOLE MEETING DATE: NOVEMBER 12, 2003
AGENDA: KEY FINANCIAL STRATEGIES
AGENDA SECTION:
DISCUSSION
PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR
AGENDA NO: A, A.
ATTACHMENTS: NONE
APPROVED BY: 4��
The City Council previously authorized staff to retain Ehlers & Associates for the purpose of conducting a Key
Financial Strategies (KFS) program to look at current and future fiscal and budgetary processes and impacts for
the City of Rosemount. The KFS program includes at least four meetings with the City Council to work through
the process. The November 12 meeting is Session #1 in the KFS process.
Information was previously distributed for with an agenda packet for the October 14 meeting that was
rescheduled. Please contact staff if you no longer have this information. The Ehlers team of Jim Prosser and
Rebecca Kurtz will be present at the meeting and will provide additional detailed information for the purposes
of conducting Session #1.
RECOMMENDED ACTION:
DISCUSSION OF KEY FINANCIAL STRATEGIES. NO ACTION IS
REQUESTED.
COUNCIL ACTION:
CITY OF ROSEMOUNT
AGENDA
SPECIAL MEETING
October 14, 2003
Jaycee Park Shelter
6:00 P.M.
City Council and City Staff
1. Call to Order
2. Key Financial Strategies
3. Adjournment
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
SPECIAL CITY COUNCIL MEETING DATE: OCTOBER 14, 2003
AGENDA: KEY FINANCIAL STRATEGIES
AGENDA SECTION:
DISCUSSION
PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR
AGENDA NO:
ATTACHMENTS: KFS PROCESS INFORMATION
APPROVED BY:
The City Council previously authorized staff to retain Ehlers & Associates for the purpose of conducting a Key
Financial Strategies (KFS) program to look at current and future fiscal and budgetary processes and impacts for
the City of Rosemount. The KFS program includes at least four meetings with the City Council to work through
the process. The special meeting of October 14 is Session #1 in the KFS process.
Attached for Council review is information previously provided by Ehlers & Associates regarding the process
outline for Council and staff, as well as a description of the Financial Foundation to the KFS approach. The
Ehlers team of Jim Prosser and Rebecca Kurtz will be present at the meeting and will provide additional
detailed information for the purposes of conducting Session #1.
RECOMMENDED ACTION
DISCUSSION OF KEY FINANCIAL STRATEGIES. NO ACTION IS
REQUESTED.
COUNCIL ACTION:
FREERS
8 ASSOCIATES INC
Key Financial Strategies
Process Outline
1. Explain KFS process.
2. Review KFS objectives.
3. Identify and discuss financial
foundation items.
4. Provide financial status
overview.
5. Compare and contrast with other
cities.
6. Review financing /revenue
options.
7. Opportunity to discuss
community infrastructure and
financial strengths and
weaknesses.
1. Review costing of foundation
items.
2. Review scheduling of
investment /capital improvement
items.
3. Discuss gap financing options.
1. KFS process guide.
2. KFS objectives.
3. Financial checklist.
4. Overview.
5. Comparison. (Tax base
mix /growth/
allocation/growth
factors/population/socio-
economic mix /housing type
age)
6:Budget comparison for last
"
3-10 years.
7. Bond rating agency criteria.
8. Debt ratios.
9. Comparable cities- typical
residential tax bill /mix of
tax capacity.' "o
1. Document areas of concern
as identified by council
and staff.
2. Identify foundation areas
which required
development or updating.
1. Review preliminary plan
including expenditures, schedule
and revenues.
2. Review funding alternative
impacts.
3. Provide financial revenue
forecast model.
4. Review preliminary gap analysis.
1. Foundation items cost. I 1
2. Schedule of capital
improvements.
3. Gap financing options.
4. List of revenue options.
5. Community strengths and
weaknesses.
1. Preliminary plan.
2. Alternative impact analysis
3. Revenue forecast model
4. Sources and uses summary.
rd
Agreement on foundation
costs.
Agreement on capital
improvements and
schedule.
Direction regarding gap
financing options.
Identify any remaining
potential funding needs or
revenues.
2
3
1. Agreement on financing
options, schedule and
costs.
1. Review final plan. 1. Final plan. 1. Final action plan.
2. Review policies and schedule 2. Schedule. 2. Schedule.
required to implement final plan. 3. Policies. 3. Policies.
N: \GENERALTey Financial Strategies\KFS.outline . wpd
If
EHLERS
8 ASSOCIATE 5 I N C
Key Financial Strategies
Staff Outline
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
4.
5.
6.
7.
Explain KFS process.
Develop draft US objectives.
Identify and discuss financial
foundation items including need for
new materials.
Review financial status.
Identify comparison cities.
Review financing /revenue options.
Develop master schedule.
Review financial policies.
Review outcomes of session one.
Review objectives established by
council.
Review financial foundation
materials.
Reach consensus on presentation
format.
Review budget funds and structure
Review agenda for session two.
Review strengths and weaknesses.
1. Review outcomes of session two. 1. Agreement on revenue forecast
2. Review revenue forecast model. model.
3. Review gap analysis. 2. Agreement on gap analysis.
1. Review draft plan. 1. Agreement on draft plan.
2. Review agenda for session three.
1. Review results from session three. 1. Agreement on draft
2. Review draft recommendations and recommendations and
implementation plan. implementation plan.
3. Review agenda for session four.
1. Plan and schedule for filling gaps
in foundations.
2. Copies of policies.
3. Copies of financials.
4. Draft master schedule.
5. Agreement on comparison cities.
1. Presentation format.
2. Agreement on financial foundation
materials.
3. Agreement on agenda for session
three.
N: \GENERAL\Key Financial Strategies \KFS.staffoulline.wpd
FREERS
8 ASSOCIATES INC
Ehlers & Associates
Key Financial Strategies
Financial Policies
Debt Management
Establishes appropriate debt levels and debt instruments.
Defines how debt will be paid.
Risk Management
Describes use of insurance versus risk retention.
g "
n
Establishes policy regarding funding of reserves.
Provides for allocation of risk management charges.
Special Assessment °'
Establishes policy regarding public benefit versus assessed share.
Describes when special assessment financing will be used.
Establishes policy regarding financing cost.
, s er Charge �a.
I
Establishes standards regarding recovery of actual costs to provide
or product.
Utility:', harges :, Establishes standards regarding recovery of actual costs to provide
service or product.
Establishes standards regarding allocation of fixed and variable
costs.
Establishes standards for the type of acceptable investments.
Establishes collateralization standards.
Establishes liquidity standards.
Describes when and how annexation will be considered.
Describes when assistance such as tax increment financing,
abatement and other assistance will be provided.
Provides guidelines for targeted fund balances based upon cash
flows, emergency needs, contingencies and management policies.
Describes how the budget will be developed, implemented and
revised as needed.
Describes how revenue a expenditur variances will be managed.
N: \GENERALUCey Financial Strategies \KFS.financial.policies.wpd
FREERS
& ASSOCIATES INC
Key Financial Strategies
Financial Foundation Descriptions
Capital Improvement Plan J A five to ten year projection of anticipated capital expenditures. The plan
should cover all funds of the city and should be updated at least once every two
�=
years. Plan should include revenue sources.
Growth lmpacts, On Operations And .
A review of different growth and development scenarios on the City's
Capital Needs r
operation and capital needs. Will be done in conjunction with the City's
capital improvement plan and other facets of this study.
Pavement.Managernent Sys #ern
A long term maintenance and capital improvement plan detailing the
`
techniques (sea] coating, crack filling, routing, resurfacing and replacement and
".;
annual cost for maintaining and replacing roadway systems (pavement, curb,
gutter and impacted utilities as required). Ideally this plan is incorporated into
the CIP.
Storm Sewer Management Plan -.
A five to ten year projection of storm sewer related expenditures. The plan
should include revenue sources and expenditures by project area and should be
updated periodically.
Non- Annuail Recurring Maintenance.
The periodic cost to maintain physical facilities such as HVAC, roof systems
�.�
and parking lots.
Facili Replaeemen# u
The cost to upgrade or replace major facilities such as city hall, public work
facilities, public safety, fire stations, water plants, wastewater treatment plants,
recreation buildings
Information Technologies,
The cost to purchase, support and maintain computers, telephones, radios etc.
Econnmic,Development:
City /HRA /EDA cost to retain and attract residential and commercial tax base
to community.
Housing Development :.
The cost to replace or upgrade substandard housing and to develop new types
of housing.
- Deft whaeemen�t
A summary of existing debt service commitments and impact of future debt.
Budget Optjon Analysis .
An analysis of the impact of potential budget reductions at specified levels and
fixture staffing needs.
Council Goals and ,Objectives.
The cost and schedule assigned to council goals and objectives.
Vehicle /Equipment Replacement
An inventory of vehicles and equipment for all departments and proposed
Plan' ,,
replacement schedule including net cost to replace. An option to this plan is
a vehicle enterprise fund which "leases" vehicles to departments. Lease cost
may include maintenance costs.
Five Year B: udge tPro jection `
A projection of revenues and expenditures for major funds including new or
previously deferred programs and services.
Credi# Rating Report,
Credit rating reports may provide a basis for changes in financial operations
that will improve the city' ability to fund capital improvements.