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HomeMy WebLinkAbout2.h. Key Financial StrategiesCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR DISCUSSION COMMITTEE OF THE WHOLE: JUNE 11, 2003 AGENDA: KEY FINANCIAL STRATEGIES AGENDA SECTION: DISCUSSION PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR AGENDA NO: 2. ATTACHMENTS: Proposal from Ehlers & Associates APPROVED BY: At the previous Committee of the Whole (COW) meeting, representatives of Ehlers & Associates and the City of Chanhassen discussed Key Financial Strategies (KFS) with the City Council. The Council directed staff to get more information from the City of Chanhassen and a proposal and timeline from Ehlers for further consideration. Z The City of Chanhassen will be considering the final KFS report at its meeting on Monday, June 9. Staff will get a copy of the final report following that meeting and distribute it to Council prior to the COW meeting. Attached for Council review is a proposal from Ehlers & Associates that outlines the deliverables of the KFS process. The services would be provided for a fixed fee of $18,000. The proposal suggests that billing would occur in installments after each workshop. Staff has negotiated with Ehlers to pay the full cost at the end of the process. Given the fact that the City is in the position of cutting budgeted items in 2003, Ehlers understood that the City is not in a position to be contracting for non- budgeted services. Should the Council choose to proceed, this item will be included in the 2004 operating budget. Regarding a timeline for the process, the first meeting with the City Council would likely occur in late July or mid - August. Ehlers would meet initially with City staff to begin preparing necessary documentation and reports before beginning discussions with the City Council. Because the schedule will depend on the staffing resources and time necessary to provide analysis and preparation between Council sessions, it is difficult to set a firm schedule. As discussed on May 15, the full process is likely to take 6 -9 months. RECOMMENDED ACTION: Give staff direction to proceed with Key Financial Strategies. COUNCIL ACTION: r EHLER & ASSOCIATES INC May 21, 2003 Jamie Verburgge, Manager Rosemount City Hall 2875 145`" St West Rosemount, MN 55068 -4941 Re: Proposal For Key Financial Strategies Dear Mr Verburgge: Ehlers & Associates is pleased to submit a proposal for Key Financial Strategies. This financial planning process was developed as a result of interviews with over fifty Minnesota cities. Key Financial Strategies is targeted to cities who want to develop a practical, effective framework to address the complexities, of balancing long and short-term operating and capital needs. This program includes a series of four interactive workshops with the city council directed at providing a comprehensive financial plan for your community. Council workshops cover the following topics: • Review of "Financial Foundations" relating to city capital and operating funds. This includes Capital Improvement Projects (CIP), Pavement Management System, Information Technology, Vehicle Replacement, Non- annual Recurring Maintenance, Building Replacement and Budget Alternative Analysis. • • Review impacts of growth on your city's tax rates, services levels, operating budgets and capital needs. • • Identification of funding alternatives and financial implications. • Prioritize projects in general fund and CIP. • Draft strategies for the city's future capital and operating financing needs. The workshops are generally conducted over a six to nine month period. Each workshop requires approximately 1 to P/z hours. Prior to each workshop the Ehlers team will meet with staff to gather relevant materials and prepare workshop materials. The services would be provided for a fixed fee of $18,000 billed in installments after each workshop. These services would be provided by Jim Prosser and Rebecca Kurtz. L EADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Roseville, MN 55113 -1105 651.697.8503 fax 651.697.8555 jim @ehlers- inc.com Key Financial Strategies is designed to provide your staff and council with the ability to address the ever increasing demands of balancing limited resources with increasing demands for services, maintenance of city assets and new community improvements. This program will provide specific strategies designed to guide your community in developing a framework for financing future capital and operating needs of your community. In addition Ehlers will produce a five year projection of capital and operating needs based on the results of the KFS process. We look forward to the opportunity to meet with you and discuss this proposal further at your convenience. Sincerely, EHLERS & ASSOCIATES, INC. Jam Tosser, CIPFA Executive Vice President/Director Rebecca Kurtz Financial Advisor