HomeMy WebLinkAbout3.b. 2004 Employee Insurance RenewalCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR DISCUSSION
COMMITTEE OF THE WHOLE: OCTOBER 15, 2003
AGENDA: 2004 EMPLOYEE INSURANCE RENEWAL
AGENDA SECTION:
UPDATES
PREPARED BY: JAMIE VERBRUGGE, CITY ADMINISTRATOR
AGENIn
, M 77 3
ATTACHMENTS: NONE
APPROVED BY:
The City of Rosemount is currently working through a Labor - Management Insurance Committee to evaluate
options for renewal of the 2004 insurance benefits package. Based on previous Council direction, staff has
directed renewal options to be drafted that include up to a 10% increase in the City contribution toward the
purchase of health insurance benefits. The renewal figure for the current health insurance, Blue Cross Blue
Shield's Double Gold, was an increase of 20.9 %. For that reason, program options that are within the Council -
directed cost stricture are being reviewed.
Staff will present more information at the Committee of the Whole meeting regarding the option plans being
reviewed.
RECOMMENDED ACTION: Give staff direction.
COUNCIL ACTION:
�2 LFeK's fl I L E
Z0O3 -31
CITY OF ROSEMOUNT
AGENDA
SPECIAL MEETING
October 1 03
Jaycee ark Shelter
6:00 P.M.
City Council and City Staff
1.
2.
Call to Order
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 KITS 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
& 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. 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
5 -10 years..' .
7. Bond rating ag.en�,y criteria.
8. Debt ratios.
9. Comparable cities- typical
residential tax bill /mix of
tax capacity. "•+
1. Document areas of concern
as identified by council
and staff.
2. Identify foundation areas
which required
development or updating.
1. Review costing of foundation
items.
2. Review scheduling of
investment /capital improvement
items.
3. Discuss gap financing options.
1. Foundation items cost.
2. Schedule of capital
improvements.
3. Gap financing options.
4. List of revenue options.
5. Community strengths and
weaknesses.
1. Agreement on foundation
costs.
2. Agreement on capital
improvements and
schedule.
3. Direction regarding gap
financing options.
4. Identify any remaining.
potential funding needs or
revenues.
Three 1. Review preliminary plan 1. Preliminary plan. 1. Agreement on financing
including expenditures, schedule 2. Alternative impact analysis. options, schedule and
and revenues. 3. Revenue forecast model costs.
2. Review funding alternative 4. Sources and uses summary.
impacts.
3. Provide financial revenue
" forecast model.
4. Review preliminary gap analysis.
Four: 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: \GENERAL\Key Financial Strategies\KFS.outline.wpd
FREERS
6 ASSOCIATES INC
Key Financial Strategies
Staff Outline
One
1.
Explain KFS process.
1.
Plan and schedule for filling gaps
(Pnor to Session
2.
Develop draft US objectives.
in foundations.
one with CC }
J.
Identify and discuss financial
2.
Copies of policies.
foundation items including need for
b
3.
Copies of financials.
new materials.
4.
Draft master schedule.
F A,
4.
Review financial status.
5.
Agreement on comparison cities.
k�
5.
Identify comparison cities.
6.
Review financing /revenue options.
'
7.
Develop master schedule.
`
8.
Review financial policies.
TWO.'
1.
Review outcomes of session one.
1.
Presentation format.
(Prior to Session
2.
Review objectives established by
2.
Agreement on financial foundation
Jwo: *itfi CC };
council.
materials.
3.
Review financial foundation
3.
Agreement on agenda for session
materials.
three.
4.
Reach consensus on presentation
format.
5.
Review budget funds and structure.
6.
Review agenda for session two.
7.
Review strengths and weaknesses.
Three
1.
Review outcomes of session two.
1.
Agreement on revenue forecast
(Prior to Session
2.
Review revenue forecast model.
model.
three With CC)
3.
Review gap analysis.
2.
Agreement on gap analysis.
Four,,;,
1.
Review draft plan.
1.
Agreement on draft plan.
._
(Pi-ajt to, Session �;,
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.
I Review agenda for session four.
N: \GENERAL1Key Financial Strategies \KFS.staffoutline.wpd
EHLERS
6 ASSOCIATES INC
Ehlers & Associates
Key Financial Strategies
Financial Policies
Debt Managemen# ,
Establishes appropriate debt levels and debt instruments.
Defines how debt will be paid.
Risk Ma"n"J ement- ''
g
Describes use of insurance versus risk retention.
Fund $;lance Policy
Establishes olic r fundi of reserves.
p Y g g g
a
Provides for allocation of risk management charges.
t,
;.Special Assessment
Establishes policy regarding public benefit versus assessed share.
3
Describes when special assessment financing will be used.
Establishes policy regarding financing cost.
User,Charges p
Establishes standards regarding recovery of actual costs to provide
u
service or product.
Utility Charges
Establishes standards regarding recovery of actual costs to provide
, 3
service or product.
Y
Establishes standards regarding allocation of fixed and variable
as " ML �
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costs.
3
lnvestnient`Pahcy:
Establishes standards for the type of acceptable investments.
Establishes collateralization standards.
Establishes liquidity standards.
Annexatiorl,holiEy,, , Describes when and how annexation will be considered.
Business Subsidies
Describes when assistance such as tax increment financing,
abatement and other assistance will be provided.
Fund $;lance Policy
Provides guidelines for targeted fund balances based upon cash
a
flows, emergency needs, contingencies and management policies.
t,
Budged and, 1 r
Describes how the budget will be developed, implemented and
3
revised as needed.
Describes how revenue and expenditure variances will be managed.
N: \GENERAL\Key Financial Strate¢ies\KFS.financial_ policies.wpd
FREERS
8 ASSOCIATES I N C
Key Financial Strategies
Financial Foundation Descriptions
Capital Improvement Plan
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 Impacts,On Operations And ,,
A review of different growth and development scenarios on the City's
Capital,Needs
operation and capital needs. Will be done in conjunction with the City's
capital improvement plan and other facets of this study.
Pavement. Management System
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
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 - Annual Recurring Maintenance;
The periodic cost to maintain physical facilities such as HVAC, roof systems
and parking lots.
Facility Replacement
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 buildin
Information Technologies
The cost to purchase, support and maintain computers, telephones, radios etc.
Economic 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.
Debt Management
A summary of existing debt service commitments and impact of future debt.
Budget Option Analysis " -;
An analysis of the impact of potential budget reductions at specified levels and
future staffing needs.
Council Goals and Obiec #Ives ;:,
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
F
may include maintenance costs.
Five Year Budget =d
A projection of revenues and expenditures for major funds including new or
previously deferred programs and services.
Credit Rating Report
Credit rating reports may provide a basis for changes in financial operations
that will iprove the city' ability to fund capital improvements.
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