HomeMy WebLinkAbout2.g. Police Officer Retirement/ReplacementCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
COMMITTEE OF THE WHOLE MEETING DATE: June 11, 2003
AGENDA ITEM: Police Officer Retirement/Replacement
AGENDA SECTION:
.D lie W5.10../
PREPARED BY: Gary D. Kalstabakken, Chief of Police ,
AGENDA NO: �y
ATTACHMENTS: NoNe..
APPROVED BY:
As Council is aware, Officer Mark Robideau is intending to retire from the Police Department this summer.
Due to the budget discussions related to the states elimination of LGA and MVHC and the amount of severance
that Officer Robideau will receive, staff wants to receive direction on hiring a replacement for Officer
Robideau.
RECOMMENDED ACTION: Discussion
COUNCIL ACTION:
r
�2ics -Fi
�� LE
MEMORANDUM
DATE: June 10, 2003
TO: Mayor & City Council
FROM: Jamie Verbrugge, City Administrator
SUBJECT: Information for June 11, 2003 Comm. Of the Whole
Discussion Item
Item 2. H. Key Financial Strategies
Ehlers has provided a revised contract where the billing is changed to four
installments after January 1, 2004 or at the completion of each workshop.
Also the Key Financial Strategies report from the City of Chanhassen is enclosed
for your review.
E H LE R
& ASSOCIATES INC
June 6, 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 1' /2 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 four installments starting
the later of January 1, 2004 or the completion of each workshop.
These services would be provided by Jim Prosser and Rebecca Kurtz.
LEADER IN PUBLIC FINANCE
3060 Centre Pointe Drive 651.697.8503 fax 651.697.8555
Roseville, MN 55113 -1105 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 rosser, CIPFA
Executive Vice President/Director
Rebecca Kurtz
Financial Advisor
Ehlers & .s,. ociaies
EHLERS
& ASSOCIATES INC
KEY FINANCIAL STRATEGIES
OVERVIEW
Ehlers & Associates was engaged by the City of Chanhassen, 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, Manager and Staff due to
growing demands for financial resources. This strategic financial plan is the result of four
workshops with the Council and many hours of staff consultation. One of the workshops
(November 7, 2002) focused on identifying potential financial needs of the City. The results
from that session have been incorporated into this plan document.
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 we have 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.
City of Chanhassen — Key Financial Strategies
Ehlers & Associates
FINANCIAL ASSESSMENT FINDINGS
The financial assessment conducted of the City was divided into seven areas:
1. Community goals /initiatives
2. Local tax base considerations
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. A summary of
these findings is as follows:
1) COMMUNITY GOALS /INITIATIVES - Establishing a strategic profile
including community vision (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.
A) Important Initiatives -- City Officials have identified several initiatives as
part of this financial planning process. Key issues include:
• Maintaining city infrastructure. This includes:
o
Pavement Management System
•
Sewer and Water Infrastructure
•
Park Pavement Maintenance
•
Vehicle and Major Equipment Replacement
•
Water System Improvements
•
Public Facility Maintenance
• Enhance and protect city environment. This includes:
•
Update SWMP (Storm Water Management Plan)
•
Watershed Improvements
•
NPDES Phase II compliance
•
Lake Monitoring /Improvements
•
2007 Environmental Fund Solvency Issues
•
Bluff Creek Improvements
• Managing
growth. This includes:
•
Future staffing issues
•
2005 MUSA
•
City Trails
•
Comprehensive Plan Update
•
Establishing an Affordable Housing Land Trust
•
Expansion of Public Works Facility
•
Improving City Services
City of Chanhassen — Key Financial Strategies Page 2`
Ehlers & Associates
• Quality Assurance for Law Enforcement/Public Safety
• City Archives and E -City Hall.
• Explore support for new City facilities. This includes, without
limitation:
o Community Center /Ice Arena
o City Commons Park
o Chanhassen School Campus
Implication: The City has identified a significant agenda for future needs.
Developing a mechanism to regularly prioritize needs, develop
implementation programs (including resource requirements) and evaluate
the City's capacity to implement the programs should be a high priority.
Financial strategies should also include direction regarding the nature of
activities to be undertaken for each issue including:
• Assessing need for service or facility.
• Studying alternatives, methods and cost and funding sources for
implementation.
• Implementation.
B) Facility Options -- City Officials are looking at options for public facilities
including a water treatment system, Public Works facility expansion, a
Community Center, and land purchase fora potential school.
Implication: Involving the public with this process will be key to
progressing this issue to the implementation phase. Careful consideration
should be given to the funding options and impacts (including operating
costs). While there are some issues impacting the timing of these decisions,
it is essential that public understanding and support be developed.
C) 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, support and potential obsolescence.
City of Chanhassen — Key Financial Strategies Page 3
Ehlers & Associaics
2) LOCAL TAXBASE CONSIDERATIONS - Structure, quality and size of a
community's tax base impact its ability to fund services and investments.
A) Development -- City land area is approximately 54% developed and has reached 65%
of projected population. How the community completes development will impact its
future.
Implication: The City will add additional residents and businesses to its population
and, in addition, will face new and additional requests for future services as
demographics and resident interests change as well as the need to address reinvestment
in existing facilities. Understanding the dual impact of new service requests of existing
residents and the impact of additional new residents will be a key to future planning.
B) Market Value — City market value of $1.79 billion has been increasing an average
10% per year for the past 5 years. The City has a high per capita market value of
$88,000.
1.1nplication: The high per capita market value and strong commercial base provides
good opportunity for revenue diversification. The tax rate should be evaluated in terms
of what 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.
C) Tax Increment Districts — Changes in State property tax law have adversely impacted
the City's ability to cover debt service related to development. A plan has been
prepared to cover potential shortfalls.
Implication: The City should continue to implement the plan prepared to work out debt
service issues. This plan should be carefully monitored for the next two years.
D) Diverse tax base -- The City has a diverse tax base with 69% residential and 28%
commercial/industrial. The balance includes a variety of open space and institutional
uses.
Implication: Tax base diversification is a positive trend for stability in City services
requirements and property tax production. Continued effort should be made to maintain
a ratio of residential to commercial /industrial base with a target range of 67% to 75%
residential and 25% to 33% commercial /industrial.
E) 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 is clearly responsible for the level of tax base
diversification that exists today. To encourage continued balanced community growth
the City will consider appropriate strategies.
City of Chanhassen — Key Financial Strategies Page 4
Ehlers & Associates
3) FINANCIAL POSITION - Availability of funds to meet current and future needs, adequate
fund balances for cash flow purposes and to meet emergency needs requires planning and
discipline.
A) Effective past financial management practices has left the City with a moderate
undesignated, unreserved fund balance within the General Fund, Water and Sewer
Fund and Storm Sewer Fund.
Implication: The City's General Fund Balance remains adequate. Changes in State tax
structure and potential capital projects costs indicate the need to continue to carefully
monitor the fund balance.
13) The City faces growing demand and cost to provide services with limited ability to
increase short-term tax base.
Implication: State levy limits will impact the City's ability to increase operating
expenses without an offsetting increase in non- property tax revenues.
C) The City has developed effective loss reduction strategies (accident review, safety
committee). Additional risk management efforts including review of risk retention
levels, deductibles, funding of loss reserves may be warranted.
Implication: Additional development of risk management policies will help reduce
exposure to financial risks.
4.) CITY INFRASTRUCTURE - Communities need to regularly invest and reinvest in their
infrastructure (roads, buildings, parks, etc.). Regular deferral of investment can lead to
fiscal stress and community disinvestments.
A) The City has maintained a street reconstruction program since 2002.
Implication.: Overall the streets are in acceptable condition, but continued annual
investment will be needed. Progress on maintenance should be carefully monitored.
B) The City is reviewing Public Works facility needs. It is intended that facility needs will
be addressed at the same time as water treatment facilities are addressed.
Implication: The City has not initiated a plan to review the need for reinvestment in this
facility.
City of Chanhassen — Key Financial Strategies Page 5
Ehlers & Aysochves
C.) Potential need for reinvestment in public facilities infrastructure needs may increase the
property tax above the normal inflationary increase. The City has major investments in
buildings, utility systems, streets, trails, lighting systems and related improvements.
Implication: Community involvement will be key to addressing need for major
investments. The City should undertake a public participation process to involve the
community in understanding and then selecting options. Preparing plans and schedules
for anticipated required maintenance and replacement will provide information need for
financial planning purposes.
D) The City has extensive vehicle replacement requirements for Public Works and Fire
equipment. The City does not currently have a schedule of equipment replacement 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. Developing an
equipment replacement schedule and funding source will help remedy this problem and
provide a more accurate measure of services.
E) The City faces potential major expenditures in its Water Fund for infrastructure
improvements in order to meet required Federal water quality standards and
distribution system needs.
Implication: Enterprise funds are generally expected to support system needs. The City
should continue to identify future major enterprise expenditures within the next five to
ten years. This will permit the development of a utility rate plan to facilitate the required
improvements. Water rates are currently subsidizing sewer operations.
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.
A) The City's overall City tax rate remains competitive with other comparable communities
in the metro area. (52 out of 108 metro communities)
Implication: Given the competitive tax rate and the high level of services, the City
would be in position to increase tax rates when conditions permit. However, this
increase should come only upon completion of a comprehensive analysis of competing
demands and priorities with community involvement in setting and funding these
priorities.
I3) The City offers a full complement of services to residents and businesses.
Implication: Services offered by the City appear to be consistent or superior to
surrounding communities.
City of Chanhassen — Key Financial Strategies Page 6
Ehlers c Assoc;iales
C) Chanhassen appears to be well maintained with no typical signs of disinvestments or
deterioration.'
Implication.: Careful attention should be paid to monitoring the condition of public and
private property.
D) Chanhassen's open space and trail system appear to be equal or greater than many other
communities in the metropolitan area. A new state of art library is currently under
construction. The City does not have some amenities typical for comparable
communities including a community center and may face community interest in
developing this facility. There is not a funding source in place for maintenance of the
extensive trail system.
Implication: Planning and investments in these areas has 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 facilities will be a key factor for future considerations.
6) CREDIT POSITION Maintaining a strong credit rating helps reduce the cost of borrowing
required to develop and maintain the community.
A) The City is rated "A" by Standard & Poor'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 making progress in mitigating the impact of a tax increment
district negatively impacted by tax rate changes.
Implication: This strong credit rating has helped the City successfully issue debt at very
competitive interest rates in the commercial marketplace.
B) The City's debt burden is high at $4,000+ per capita, but reflects community growth
needs and overlapping debt of other governmental units. These burden ratios have been
falling due to community growth and value increases. About 2/3 of this debt is supported
by tax increment, assessment and enterprise revenues. Eighty -three per cent (83 %) of
the City's debt will be paid off in ten years.
Implication: The City has successfully implemented a plan to address tax increment
debt issues. Careful attention should be paid to "mapping" out future debt issues for the
next five to ten years. The aggressive debt repayment schedule will enable the City to
continue to invest as needed.
C) The City currently has a moderate 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.
City of Chanhassen - Key Financial Strategies
Page 7
Ehlers & 4ssvoc,iates
7) ENTERPRISE- Operating enterprise funds as businesses is key to avoiding
transferring the burden of operations to general taxpayers. In addition some enterprise
operations can help reduce the cost of general government.
A) The City has improved cost recovery for water and sewer services but rates are still not
covering all operating costs. The City has not increased rates since 1998. The City is in
the process of completing a rate study related to the evaluation of a water treatment
investment. The study will likely recommend the establishment of minimum reserves for
operating and capital costs.
Implication: Fluctuations in water demand due to weather has provided challenges in
establishing water and sewer rates. However, rates should be established to assure
recovery of operating costs and adjusted annually.
City of Chanhassen - Key Financial Strategies Page 8
Ehlers& Associates
RECOMMENDATIONS
Based on the findings and analysis conducted in the workshops, Ehlers developed a list of
recommendations for the City -- their Key Financial Strategies -- listed in the seven categories below.
1.0 COMMUNITY GOALSANITIATIVES
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.
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. The Mayor and City Council should consider authorizing a study to
address future facility needs.
1.3 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.
Consideration should be given to continuing the use of the "Funding Public
Facilities Public Participation Process" model in City facilities planning.
1.4 TECHNOLOGY PLAN:
A technology plan has been prepared with projected needs for the next five -year
period. The plan should also include a basis for evaluating the requests for
technology investments that address cost and benefits (not limited to financial),
productivity, training, support and potential obsolescence and funding source.
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.
City of Chanhassen — Key Financial Strategies Page 9
Ehlers & Associates
2.0 LOCAL TAX BASE
2.1 Growth planning should address continued attention to balancing commercial and residential
development. Special attention should be paid to assessing housing types to reflect life
cycle, financial ranges and life style choices.
2.2 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. The
public assistance policy should be reviewed to assure flexibility to meet broad based
community needs.
3.0 FINANCIAL POSITION
3.1 FINANCIAL POLICIES:
The Mayor and 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.
3.2 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.
3.3 The City should adjust all user fees and utility rates on an annual basis to reflect changes in
the cost of services.
3.4 The City should review assessment practices to include pavement management cost recovery
through special assessments to benefiting property owners (i.e. increasing assessments to
property owners and including street maintenance such as crack sealing) and to address
increased cost of pavement management projects.
3.5 The City should establish a schedule for increasing developer fees that is determined
annually. The current method of tying fees to increases in construction cost index does not
accurately reflect the City's cost of services.
3.6 The City should use this report as part of its annual goal- setting framework.
4.0 CITY OWNED INFRASTRUCTURE / CAPITAL EQUIPMENT
4.1 CAPITAL EQUIPMENT:
The Manager and Finance Director should review the final list of items which 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 could establish
an internally funded equipment rental program to level out annual replacement costs.
4.2 INFRASTRUCTURE:
The City staff should enact each annual capital improvement program based on review of the
multi -year capital improvement needs.
The City staff should coordinate development of the capital improvement budget with the
City of Chanhassen — Key Financial Strategies Page 10
Ehlers & Assoc;iale>s
development of the operating budget. Future operating costs associated with new capital
improvements will be projected and included in operating budget forecasts.
The City should prepare a non - annual recurring maintenance schedule for City facilities.
5.0 COMPETITIVENESS
5.1 PROPERTY TAXES:
The City's tax rate is currently significantly below the state limit. In managing property
taxes, the City will seek a balance between 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.
Given these limits and demands on property taxes, 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.
Continued long range financial planning creates the opportunity for managing property taxes
and providing the greatest stability in tax rates. Staff should annually prepare three -year
projections of tax levies. Community involvement in the long range planning process will
allow build support for the development of resources to achieve goals the public has
supported.
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 impact .
residents overall taxes.
5.2 BUDGET:
The current City practice is to target only an inflationary increase in the following year's
operating budget. 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
would be included in next year's budget. This budget should then be constructed by
balancing resources with current and future needs.
The Financial Strategies should be reviewed and updated annually as part of the City's
budget process.
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.
5.3 Risk Management
The City has initiated development of a risk management program. Additional effort to
reduce risk exposure including review of retentions levels, deductible levels, funding of
reserves for retained risks should be undertaken.
City of Chanhassen — Key Financial Strategies Page 11
Ehlers & Associates
6.0 CREDIT POSITION
6.1 The approval of Key Financial Strategies by the Mayor and City Council will help
document the future City plan to Standard & Poor's Investors Service.
6.2 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.
6.3 The City should work to minimize the amount of debt supported by property taxes
and will seek maximum use of special assessments, utility revenues and other non-
tax sources to support debt.
6.4 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.
7:0 ENTERPRISE FUNDS
7.1 Annually, the Manager and Finance Director should 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.
7.2 City staff should annually review 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.
7.3 City staff should prepare a utility rate policy that addresses the need for fees to
recover operating costs and provide for operating cash, reserves, non - annual
recurring maintenance, and debt service.
7.4 City staff should identify the costs to meet mandated water quality standards and
the impact on water rates.
7.5 City staff should continue to monitor storm water management program (SWMP)
to ensure compliance with state and federal regulations.
City of Chanhassen — Key Financial Strategies Page 12
Ehlers & Associates
ACTION PLAN
This section describes the actions needed to implement the City's Key Financial Strategies. Actions
fall into two categories: Tasks for immediate action, and tasks that reflect on -going financial
management actions. The following is a recommendation on the tasks that require attention over the
next five -year period. Implementation of these Key Financial Strategies requires annual review and
updating the Plan and revision of the schedule prior to initiating the budget process. Careful attention
should be paid to developing realistic time frames and work plans.
Activity
Projected Start
Date
Level /Status
Projected
Completion Date
1.0 Community Goals/Initiatives
1.1 Goal setting
Bi- annual
1/I
N/A
1.11 Further define funding options and plan for
Affordable Housing Land Trust
2003
2/S
2004
1.2 Facility needs study
2006
2/S
2007
1.21 City Commons Park
2003
4/I
2005
1.22 Identify funding options for school land
2003
3/A
2004
1.23 Community Center / Ice Arena
2005
3/A
2007
1.3 Prepare financial strategies communication
Plan
2004
2005
1.31 Develop customer service feedback systems
for key City services
2004
2/S
2005
1.32 Conduct community survey to assess
community knowledge of and support for
new initiatives, facilities services and fees.
2005
1/S
2006
1.4 Expand e- city hall services —phase 1
2003
1/I
2004
1.41 Develop digitized document archives
2003
3/I
Ongoing
1.5 Annual CIP
Annual
1/1
Annual
1.51 Identify options for replacing 2007
Environmental Fund
2004
1/S
2005
2.0 Local Tax Base
2.1 Prepare plan for 2005 MUSA expansion
including capital and operating needs to
accommodate growth.
2003
1/S
2004
2.11 Prepare plan to accommodate growth (in
addition to MUSA) including projected
revenues and expenses.
2003
2/S
Annual
2.12 Update Comprehensive Plan
2007
2/S
2008
2.2 Update public subsidy policy
2004
4/A
2004
City of Chanhassen — Key Financial Strategies Page 13
City of Chanhassen — Key Financial Strategies Page 14
Projected Start
Projected
Activity
Date
Level/Status
Completion Date
3.0 Financial Position
3.1 Establish/Update Budget Control and
2004
2/S
2004
Financial Control Policy
3.11 Update fund balance policies
2004
2/S
2005
3.12 Update debt management plan
2005
1/S
2006
3.13 Establish/Update Investment Policy
2004
2/S
2004
3.2 Explore franchise fee in context of financing
2003
1/S
2004
needs
3.3 Establish/Update User Charge Policy
2004
2/A
2004
3.4 Review assessment practice to address
Annual
1/S
Annual
pavement management and consider
increasing assessed portions and interest rate.
3.41 Identify funding sources for Park Pavement
2004
1/S
2005
Maintenance
4.0 Infrastructure/Capital Equipment
4.2 Identify options for funding Pavement
2004
1/1
2005
Management System
4.21 Develop estimates for public facilities
2005
2/S
2006
maintenance
4.22 Prepare non - annual recurring maintenance
2004
1/S
2005
schedule
4.23 Prepare funding options for major equipment
2006
1/S
2007
sources
4.24 Construct trail additions
Ongoing
1/I
N/A
4.25 Expand Public Works Facility
Coordinate with
2/A
N/A
water treatment
project
5.0 Competitiveness
5.1 Property tax review
Annual
1/S
2005
5.11 Prepare three year budget forecasts including
Annual
2/S
Annual
revenue forecasts
5.12 Prepare alternate revenue analysis
2004
US
2005
5.13 Identify and fund future staffing requirement
Annual
1/S
April 2004
to match growth
5.2 Identify a limited number (1 -3) of selected
Annual
2/S
Annual
services for potential competitive pricing on
annual basis
5.21 Review budget option analysis as part of
Annual
2/S
Annual
budget process
City of Chanhassen — Key Financial Strategies Page 14
I
PRIORITY DEFINITIONS:
LEVEL 1 Critical to continued operation of city baseline services at present levels. This includes
restoration of services identified as baseline.
LEVEL 2 Provides opportunity for increased efficiency in baseline level of services. This includes ability to
continue to serve existing level of services without staff increases.
LEVEL 3 Provides opportunity for expansion of services to meet existing demand as evidenced
by Council direction or staff analysis.
LEVEL 4 Provides opportunity to increase services that improve quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Chanhassen — Key Financial Strategies Page 15
Projected Start
Projected
Activity
Date
Level/Status
Completion Date
5.22 Quality assurance for law enforcement/public
2003
1/S
2004
safety
5.3 Establish/Update Risk Management Policy
2003
2/S
2004
6.0 Credit
6.1 Accept Key Financial Strategies
2003
2/I
2003
6.2 Adopt debt policies as outlined in Credit
2003
2/I
2003
section of report.
7.0 Enterprise
7.1 Adjust user fees on annual basis to reflect
Annual
1/S
Annual
changes in cost of services.
7.2 Review general fund cost for enterprise
2004
2/S
2004
services for rate consideration
7.3 Develop utility rate policy
2003
1/I
2004
7.4 Evaluate /initiate Water Treatment
2003
1/S
2004
Improvements
7.41 Identify funding source for sewer and water
2003
1/I
2004
infrastructure replacement
7.5 Update Storm Water Management Plan
Underway
1/I
Ongoing
1. Watershed improvement impacts
2. Bluff Creek improvements
3. Lake Monitoring/Impro
�7,51 NPDES Phase II Compliance
Underway
1/A
2007
PRIORITY DEFINITIONS:
LEVEL 1 Critical to continued operation of city baseline services at present levels. This includes
restoration of services identified as baseline.
LEVEL 2 Provides opportunity for increased efficiency in baseline level of services. This includes ability to
continue to serve existing level of services without staff increases.
LEVEL 3 Provides opportunity for expansion of services to meet existing demand as evidenced
by Council direction or staff analysis.
LEVEL 4 Provides opportunity to increase services that improve quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Chanhassen — Key Financial Strategies Page 15