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HomeMy WebLinkAbout7A - State of the City MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: PRESENTATION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT February 17, 2009 (f)'t ~~ank Boyles, City Manage~ 2009 STATE OF THE CITY Since his election as Mayor of the City of Prior Lake in 2002, Mayor Jack G. Haugen has delivered a State of the City address each year. In this, his eighth State of the City address, and in the face of a troubled economy, Mayor Haugen will talk about the strengths of our Prior Lake community and the two key elements we can count upon to continue the journey to reach our 2030 Vision. A copy of the address will be provided to the City Council. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 STATE OF THE CITY PRESENTATION MAYOR JACK G Haugen February 17, 2009 Ladies and gentlemen, city councilors, city staff and Prior Lake citizens here, and joining us on Prior Lake Cable Television Channel 15, welcome to the Prior Lake City Council Chambers. Tonight I want to share some thoughts about our City of Prior Lake, today and tomorrow. I have had the distinct privilege to be your mayor for these last seven years. In this time period that I have taken on that responsibility, I have learned a few things. When I first ran as a mayoral candidate nearly eight years ago, I had three objectives: the first was that the city would adopt a strategic plan to guide it into its future. The second was that the city would renew its commitment to partnerships by focusing on building relationships. The final was the city would engage in better preservation of our natural resources. We have made significant strides in accomplishing all three. What people did not fully understand at the time I identified those objectives was the enormity of effort it would require. Developing and implementing a 2030 Vision and Strategic Plan while committing to partnerships and natural resources are important individually, but they are as interrelated as sheet music to an orchestra. And mastering a new piece of music takes a lot of practice and effort. You have often heard me extol the virtues of the city’s 2030 Vision and Strategic Plan. I am now more convinced than ever of the value of strategic planning and visioning. And it is especially critical in government because government is ongoing. There is no end point. The irony is that while government is ongoing, the policy makers, council members and mayors, or in business terms, the board of directors, have 4-, 8-, or 12-year careers. And that makes the implementation of strategic planning that much more difficult – but that much more important. There have been 11 different members of the city council since I took office in 2002. Each of them, without exception has recognized the value of our strategic plan and the strategic planning process. We are fortunate in Prior Lake to have members of our city councils with a strong philosophy of public input and accountability in pursuing our vision. As a result, our community focus has remained on the 2030 Vision and Strategic Plan rather than pursuing individual objectives which do not move us toward our vision and waste much time, effort and money. Governance is complex. Building a city is complex. Imagine that you are given the task of putting together a three dimensional jigsaw puzzle. No problem right? But the puzzle is ultimately 20 square miles in size and the final picture on the puzzle can change as you put it together. What’s more, you do not have all the puzzle pieces and those with the other pieces may not agree with the picture you want on the final puzzle. As if this is not bad enough, the money you need to put the puzzle together may or may not be available to you when you are ready to move forward. This example gives you some idea of what it is like to build a city and why a vision and strategic plan are so important in the city building effort. Complex things like city building must be dissected into their individual parts before the whole can be fully understood. Many of those parts have price tags in the millions of dollars, roads and other infrastructure that require ongoing commitment through good times and bad. This is yet another reason to support our long-term vision. The 2030 Vision and Strategic Plan reflects the thoughts of those who desire to participate in the planning process through a friendly debate about the direction and priorities of the community. As they say, “the world is run by those who show up.” Thankfully, Prior Lake’s participation in formulating the original 2020 Vision has grown as we have created and updated our vision to 2030 with upwards of 400 people participating in the process to date. I believe that this exceptional participation is an acknowledgement by our public of the importance of the 2030 vision as a tool for continuing to build our community and the quality of life it represents. You may wonder where the 2030 Vision came from. I would like to talk for a moment about the evolution of the 2030 Vision and Strategic Plan. You may recall we started with eight vision elements in 2002. For those of you who may not be aware, a vision element is a critically important topic which we must address to build the city of our vision. So vision elements are very, very important. The first eight elements were Quality Community Growth; Housing Quality and Diversity; Capital Community Capital Assets; Economic Development; Downtown Redevelopment; Strong Financial Management; Natural Resources; and Transportation. These are the building blocks for achieving our vision. Communication was added as the ninth vision element in 2005 recognizing the city plays a vital role in informing our residents of what we are doing to achieve their long term vision. In 2007, Safe and Healthy Communities was added as the 10th vision element recognizing that citizens cannot reach their full potential without a sense of safety and security in their homes, neighborhoods and community. We have come a long way as a city in 2008 According to Carl Neu – one of the nation’s leading experts in government strategic planning – the 2030 Vision and Strategic Plan makes the city more effective because we get more work done. We get more work done because the vision tells us what to do. The critical question of what needs to be done has been answered, which leads to the next question of how we get the job done most cost effectively. Our experience demonstrates that Mr. Neu is right based upon the following achievements in 2008: - In January 2008, Club Prior became a reality for active Prior Lake area residents over 55 years of age. We converted a dance studio into a facility where people can gather for movies, pool, darts, dance, exercise, cards or conversation – often at the same time. The facility became a partnership with the city completing the remodeling to the specifications of the senior citizen task force and the senior citizens donating things like a pool table, Wii, DVD player and much more to make the space usable for many purposes. This senior community was identified as a priority in our initial 2020 Vision! - More recently, on three afternoons in January and three during the current month of February, the space has been used by teens as a gathering space through a partnership between community education and city recreation. These successful gatherings have enjoyed great participation so that parents can finally say there is a place in Prior Lake for teens to go. - Much has been said about SCALE, the Scott County Association for Leadership and Efficiency. Through this organization and its partnerships, the Regional Joint Training Facility has become a reality. Because of this facility, there will be a cost-effective high-quality training facility for police, fire, ambulance, public works and other emergency responders to hone their skills so you and I can be better served in our greatest time of need. - The new water treatment plant is the singular most dramatic improvement we have made to city infrastructure since utilities were extended to the North Shore of Prior Lake in the 1980’s. The plant will have numerous benefits to all of us as domestic water users. It will lessen the brown water episodes we face, lengthen the life of our water system and afford greater firefighting protection community wide. - Speaking of firefighting, 2008 marked a significant step forward in the city’s ability to better serve our citizens living in the northwest quadrant of our city. The construction of Fire Station No.2 is complete and it formally opened early last fall. The Prior Lake taxpayer stepped forward to pass a referendum to make this critical public safety facility possible. Fire Station No. 2 also represents a significant broadening of our partnership with Allina Ambulance as they now office from the fire station, affording firefighters and emergency responders the opportunity to work and train together to achieve maximum effectiveness. A wonderful partnership for the benefit of all of our citizens! - Two blighted buildings, Joe’s Pizza and Minnesota Nails, were removed to provide additional downtown parking. In addition to the added parking, the removal of these buildings places the city in a better position for downtown redevelopment when the market recovers. The elimination of the buildings also removes two eyesores which negatively affected the value of other buildings in the area and adversely affected the growing pride in our downtown. - After months of preparation, the Master Park Plan has been completed. Like our Capital Improvement Program, the Master Park Plan is the newest tool in our financial planning arsenal to assure that improvements to our park system are undertaken in an orderly manner and only when funds are available. The Master Park Plan is especially exciting as it identifies land around Pike Lake, Campbell Lake, Rice Lake and Markley Lake as future natural parks. The preservation of these natural lake properties has long been a priority in our community and is an important part of the legacy we leave future Prior Lake residents. - In 2008, Prior Lake distinguished itself by establishing the Community Safety Advisory Committee and approving a list of eight objectives for accomplishment in 2009. Six of those objectives have already been accomplished or are ongoing. - A key example is the Social Host Ordinance which the city council passed in December to provide the police department with another tool to fight th underage drinking. In doing so we are the 17 municipality in Minnesota – a state with over 850 cities – to take such aggressive alcohol-preventive action. This new ordinance will be the topic of discussion at the SCALE meeting next month to provide awareness, seek support and determine the appropriateness of adoption countywide. - Also in 2008, the Dakotah Ice Center opened to meet community needs as documented by the Parks, Athletics, and Recreation Task Force Report. This state of the art facility serves ice skaters of all kinds from the Prior Lake area. Our special thanks to the Shakopee Mdewakanton Sioux Community (SMSC) and especially Chairman Stanley Crooks, Vice Chairman Glynn Crooks and Secretary/Treasurer Keith Anderson for this $10 million gift to the children of our community. We continue to be thankful for the tremendous partnership that we have with the SMSC. - In our ongoing quest to remain fiscally prudent, we have published our financial gold standards for 2007 showing our progress. - I am pleased to report for the third year in a row Prior Lake has the lowest tax rate of all Scott County cities. - Only 24 communities of the over 850 communities in Minnesota have a better bond rating than Prior Lake’s Aa3. Strong bond ratings save you and I thousands of dollars year after year as a result of lower interest fees charged on city borrowing. - Our fund balance is an exceptional 43% of our general fund budget as recommended by our city and state auditors. This fund provides money for general cash flow, emergencies, and one time opportunities. Shrinkage of our fund balance puts our bond rating at risk, which as I said a moment ago, could cost our citizens thousands of dollars each and every year. This is by no means an exhaustive list, but it does provide an overview of city activities in 2008. What is apparent is the work being done in each vision element as we move forward. As objectives are achieved, new goals are added by the long-range planning committee. Let me take a moment for a short commercial. You have the opportunity to have input on your community’s 2030 Vision and Strategic plan. I encourage each of you in the strongest possible way to participate in our vision update scheduled for March 11, 2009 at 5:30 p.m. at the Wilds. Just call or e-mail Charlotte Green at (952) 447-9803 or e-mail her at cgreen@cityofpriorlake.com to RSVP your participation. Whichever groups you are a part of – youth, seniors, the business community, civic organizations, neighborhood associations, athletic organizations, the faith community, the school district, surrounding townships, the SMSC or beyond – we need your participation! Please join us! The Future is Uncharted Waters We find ourselves in uncharted waters today. Last week, President Obama said the world economy is in the worst condition we have seen since the great depression. Most economists agree. Home values have declined. Foreclosures are on the rise. Unemployment is spiraling up while retirement accounts deflate forcing persons at retirement age to endure a more austere retirement or postpone it altogether. These are hurtful lifestyle changes faced by individuals and families. In government, things are equally discomforting. Congress has just passed a stimulus package of nearly $800 billion dollars to try to jump start our failing economy. The State Legislature is trying to fill a revenue shortfall that could approach $7 billion dollars over the next two years. Counties and cities are being asked to bear a significant portion of the burden. Scott County, for example, faces a $3 million shortfall. These are major problems with no simple answers. So what does all this mean for Prior Lake? The good news is we have a strong financial position and there is no reason for panic. But, the reality is we have revenue concerns that we need to be very aware of. In 2008, the city lost $113,000 in state funding in the last 15 days of the year. Thankfully, we had anticipated significant revenue reductions for 2008 and made corresponding reductions in expenditures early in the year so we were positioned well for this last-minute cut by the state. As we move into 2009, we have three very important concerns: 1. The State of Minnesota has already announced that we will not receive $223,000 in market value credit the state should provide to the city. 2. The interest on our investments, like everyone else, will be less – perhaps as much as $100,000 less. 3. And with the lag in both residential and commercial building activity, our building permit revenue could shrink by as much as $200,000. Needless to say 2008 was not and 2009 will not be business as usual. In 2008 we eliminated 4.5 full time positions totaling $290,000. In 2009, we have made plans for the loss of state funds, continued reductions in revenues and are planning for approximately $500,000 in reduced expenditures. While it may look like it at first, our approach in Prior Lake has not been a cut, cut, cut approach. Instead, because of our 2030 Vision and Strategic plan, we can view these expenditure reductions as deferrals and delays to what ultimately needs to be done. The vision allows us to fix our sites on the end target while we continue to move forward in a fashion that responds to economic circumstances. Sometimes we move fairly fast. Other times we move very slow and with extreme caution. Now is the time to proceed with extreme caution. Let me repeat what I said earlier, we do not need to panic. We are making and will continue to make the necessary financial adjustments to cope with lost revenues. These adjustments include examining the role of Prior Lake government. We need to decide where to place our emphasis. If programs or services meet the needs of our people, then they should be retained. If they do not, they should be curtailed. New programs should be considered only to the extent they address a new need with the probability that they will replace current programs and services. The challenge is to focus on what fit – what needs to be offered and what does not. I have often used the hutch analogy which says in simple words…If your “hutch” is full and you want to put something new or additional in it, you have to identify items to remove. You need to discard that which is no longer relevant. What we need to do in my opinion is manage the loss of revenues. It is not good enough to be victims of our circumstances. We know the state cannot fulfill its financial obligations to us. We know our interest income may be halved. We know our building permit income may be substantially diminished even though we had budgeted conservatively. But we must not lose sight of our vision. Fast forward through 2009 The city is blessed with wonderful partners. With their help we have accomplished much in the past seven years. There are numerous significant examples of the city’s partnership with civic groups, athletic associations, senior citizens, surrounding cities, the SMSC, townships, school districts, religious groups, youth organizations, Scott County and so many more. Our comparatively small community with relatively modest resources has done much. We boast some of the finest parks, active and passive, in the Metropolitan area. They became so because partners like the Lions and VFW adopted parks and devoted their hard-earned funds to their betterment. The SMSC and Prior Lake Athletics for Youth donated significant resources to bring lights and other improvements to Ryan Park. Through SCALE and our school district we have provided some of the finest outdoor learning laboratories around and loaned and borrowed tools to promote the accomplishment of cost- effective citywide maintenance. Through an effective 20-year partnership between the school district, the Police Department and the Prior Lake Rotary Club, our children are the beneficiaries of one of the most effective DARE programs in the nation. My challenge to the city council, staff, and the entire community is to identify what else can be accomplished through partnerships, for it is my belief that we will need to rely even more heavily upon partnerships in the future. And through our renewed efforts we will continue to preserve the quality of life in our community. Let me share the partnership accomplishments I see taking place in this coming year. Please note at the outset that each is fully consistent with the 2030 Vision and Strategic Plan. In 2007, the city purchased parcels totaling 30 acres on the shores of Pike Lake. This property is among the most beautiful in Prior Lake. Someday, you and I will be able to walk its trails, snowshoe, cross country ski, observe natural habitat and canoe in this park. But the cost of developing this vision will be substantial, but I believe it fits perfectly with the goal of preserving our wonderful natural resources. So, we are working with the SMSC who own two adjacent tracts of property to make one park which could include as much as 200 acres. In doing so we leverage the expertise of our respective staffs while minimizing land sacrificed for parking lots and other such essential facilities and make effective use of our short- and long-term financial resources. We have city recreation, school district community education, SMSC Dakotah Sport and Fitness, and soon the River Valley YMCA in Prior Lake, all servicing the recreation and program needs of our kids. I would challenge the leaders of these organizations, most of whom are in attendance tonight, to come together to identify how partnerships can be enhanced to improve service delivery, reduce program duplication, reduce program administration costs, and enhance the overall opportunities for our citizens. The city and SMSC both have domestic water and wastewater systems servicing adjacent property. We need to continue to discover effective ways to integrate these systems for our mutual benefit. We have already begun this effort by connecting our two systems in a fashion that allows one system to help the other if the need arises. In 2009, I expect that we will accomplish the planning which is needed to further integrate our systems. I believe that one day Prior Lake and the SMSC will build a joint water treatment plant serving both communities. The ground work needs to be laid today. By the same token the SMSC operates a state-of-the-art waste water treatment system. Its ultimate capacity is twice the present output. The metropolitan council is seeking additional sewer capacity. By exploring ways to connect Prior Lake properties to the SMSC plant we can expand the capacity available both to Prior Lake and to the Metropolitan Council. At the conclusion of 2009, we hope to have agreements in place which pave the way for these achievements. This community has demonstrated fiscal responsibility for decades. Now, in the most challenging fiscal times we must continue to do so. We must resist the urge to raid our general fund reserve as some other cities have done. Instead, we must protect it at all costs so we continue to have fail-safe emergency and cash-flow funds available; In doing so we will also protect our most valued financial possession: our bond rating. The most important point is that, as we develop our two- and five-year goals and objectives, we must keep our collective eyes on our 2030 Vision and Strategic Plan. We know what must be done once the economy is back on course: that is to continue our quest toward our 2030 vision. Our vision can be adjusted in the speed of its implementation or in the priorities of its short term objectives; but the vision must not be lost. Continuing the march to our Vision Who will assure that the vision will be pursued to completion? After all, there are three members of this city council, myself included, whose terms expire at the end of this year. It could be that none of us run for re-election or one or more of us could be defeated in a re- election bid this fall. We, as individuals are transitory, temporary, but the 2030 Vision and Strategic Plan transcends us and will be carried forth to future generations. We need to gather together and discuss important community issues such as how the present climate affects our ultimate vision and what changes should be made to our goals and objectives. We are at a critical juncture. The resources available to pursue our vision have changed. We have to find a way to do more with less, or we will find ourselves doing less with less. This is not the time to drive toward the vision fast. But while we may change the speed we will most certainly hold a steady grip on the wheel so our aim is true. Conclusion As I have often said, nothing is more permanent than change. As we face the challenges of the coming months, and perhaps coming years, we will need to be open to change more than ever before. By “we” I do not mean others, I mean each of us as partners. So, as I leave you tonight, I want to issue the same challenge as one of my favorite presidents did. He was focused upon our nation. I am focused upon the Prior Lake community and its future. He said we will put a man on the moon by 1970. People scratched their head and said it could not be done. But on July 21, 1969 Neil Armstrong took the first steps on the moon and the impossible objective had been completed. How is this possible? It is possible because President John F. Kennedy understood the incredible power of partnerships when combined with an agreed upon set of objectives. That is what we have here in Prior Lake. We have a vision. We have people. We have partnerships. And that is why I am absolutely confident that regardless of the economic circumstances, the Prior Lake community will continue to move toward its 2030 Vision. In doing so, we will preserve and enhance the quality of life for our citizens for generations to come. May God bless each of you and may God bless the City of Prior Lake.