HomeMy WebLinkAbout02 22 11 city council work session - 2012 budget/.� PRI()
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4646 Dakota Street SE
Prior Lake, MN 5 53 72
CITY COUNCIL WORKSHOP AGENDA REPORT
MEETING DATE: FEBRUARY 22, 2011
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTER: JERILYN ERICKSON
WORKSESSION 2012 BUDGET SCHEDULE AND INFORMATION
TOPIC:
DISCUSSION_: Introduction
Prior to starting the process to establish the 2012 budget, Staff is seeking
feedback from Council Members on various elements of the process:
1) Timing and topics of information to be discussed (see attached draft
workshop schedule)
2) Format of Revenue and Expense Information
3) Benchmarks and Comparative Data
4) Property Tax and Financial Projections
5) Other
History
In 2010, the 2011 budget process began with a long -range financial
planning workshop to discuss future property tax demands and impacts on
the General Fund reserve levels that were projected based on inflationary
pressures on operational expenses (including personnel) and the City's
commitment to its long -term planning documents for infrastructure
improvements and capital replacement. This provided a basis for
addressing each of the various components that were impacting the
property tax levy.
Workshops were then held throughout the year to discuss those
components: Transportation Plan, fund balance reserves, program and
service priorities, Facilities Management Plan (draft), Capital Improvement
Plan, etc.
Current
1. Timing and Topics of Information
Attached to this agenda report is a draft workshop schedule which reflects
the actual schedule that was used to develop the 2011 budget, a proposed
2012 schedule and a column for council members to make suggestions for
revising the schedule. All of the regular 2011 workshop dates are included.
The schedule also reflects other topics which have already been tentatively
scheduled for particular dates.
Staff is recommending that Council consider dedicating additional time for
certain workshops in order to provide sufficient time for presentation and
discussion of the data. Those workshops are noted with an asterisk.
Comprehensive Financial Management Policy
Fund balance reserves (as a component of the future Comprehensive
Financial Management Policy) is an area that Staff believes the Council
may want to discuss more in -depth in the early stages of the 2012 budget
development.
Capital Improvement Plan
The proposed budget schedule reflects the Capital Improvement Plan (CIP)
process pushed back to allow for workshops to discuss the Facilities
Management Plan and the Technology Plan. These are two new long -term
plans that Staff is recommending to be included as on -going components of
the CIP. A draft of the Facilities Management Plan was discussed in
September, 2010. The Technology Plan has not previously been
presented to the Council.
2. Format of Revenue and Expenditure Information
Historically, the revenue and expenditure information has been presented
numerically or as a percentage of change -- -many numbers to digest.
Some of the information has been shown graphically, as well.
Recognizing that some individuals (Council, Staff and residents) may
comprehend information better in a numerical format and others in a
graphical format, are there specific formats that the Council would like to
see included in the 2012 and future budgets?
3. Benchmarks / Comparative Data
Staff would like feedback regarding what comparative data or benchmarks
should be presented that would be helpful to Council members in order to
make decisions regarding resource allocations.
We currently have the following performance objectives in the 2030 Vision
and Strategic Plan:
• Aa2 Bond Rating
• 45% General Fund Reserve Balance
• Lowest City Property Tax Rank in Scott County
• 100% Funded Fire Relief Association Pension
• 98% General Fund Budget Outcome
• 97% Investment Position of All City Funds
• 60/40% Property Tax Ratio
In addition, the following growth statistics were presented to the Council:
• Expenditure data on per capita and per household bases (historical)
• Population
• Dwelling Units
• Building Permits Issued
• Number and Acres of Parks
• Street Miles
• Police Calls
• Fire Calls
Page 2
Are these benchmarks or comparators sufficient or are there others that the
Council would like to consider for the 2012 and future budgets? Are there
specific cities that the Council would like comparisons made from year to
year?
4. Property Tax & Financial Projections
In 2011, Staff presented five -year property tax projections so Council could
see the longer -term impact of their decisions regarding infrastructure and
capital replacement, debt service, service priorities, etc. This also enabled
Staff and the Council to see when taxing capacity might be available due to
the maturity of debt to reallocate that taxing capacity to fund other service
priorities.
Are these 5 -year projections helpful to Council members in order to make
decisions regarding resource allocations?
5. Other
Staff would like to ensure that the information being prepared for the
Council and the public during the budget process not only adds value to the
Council's decision - making process but improves the public's understanding
of how their property taxes and fees are being used.
Is there additional information that would be helpful to achieve these
objectives?
Conclusion
The primary focus of the workshop is to receive direction on the following:
1) The workshop schedule and the topics to be discussed
2) The format for which revenue and expense information is present
3) The benchmarks and comparative data to be used
4) The value of property tax and financial projections
Page 3
2012 Budget Schedule
** consider 2 hr workshops
Date
Day
2011 Budget
Date
2012 Budget - Proposed Schedule
2012 Budget - Council Recommendations
1/19/10
Tues
WS - 2030 Vision and Strategic Plan - discuss objectives and goals
2/1/10
Mon
WS - Long Range Financial Planning: 1) discuss and review
2/7/11
impact of inflationary pressures, personnel contracts, Transportation
Plan, Equipment Program, Parks Matrix, Technology Plan, Facilities
Management Plan,Etc. on property tax levies. 2) Use of Fund
Balance Reserves 3) Debt
2/16/10
Tues
WS - Transportation Plan - discuss priorities (projects, funding, tax
2/22/11
WS - 2012 Budget (Identify planning schedule, types of
levy)
information needed, etc.)
2/1 -3/12
City staff update Transportation Plan, Equipment Program (Public
Works, Fire & Police) & Park Matrix
3/1/10
Mon
WS - Sewer & Water Rates - incorporate updated CIP
3/7/11
WS - 2030 Visioning;
recommendations
3/15/10
Mon
WS - Discussion of fund balance reserves
3/21/11
WS - Economic Development Work Plan
CC - Sewer & Water Rates / Financial Projections
4/5/10
Mon
WS - CIP Draft for 2011 -2015
4/4/11
WS - Financial Standards / Benchmarks
4/12/10
Mon
Planning Commission reviews proposed CIP for compliance with the
Comp Plan.
4/19/10
Mon
WS - Budget #1 - discussion of program and service priorities;
4/18/11
* *WS - Comprehensive Financial Management Policy
provide directive for acceptable range of property tax levy and
(Reserves only ?)
budgets; CC - Authorize Negotiated Sale of Bonds
5/3/10
Mon
CC - Approve Issuance & Sale of bonds
5/2/11
WS - SCALE Unified Transit Plan Education
5/17/10
Mon
5/16/11
WS N/A - Audit presentation
6/7/10
Mon
CC - Public Hearing on 2011 -2015 CIP
6/6/11
* *WS - CIP 2012 -2016 Draft - (Transportation Plan, Utility
Operating Plans, Equipment Replacement Plan & Park
Equipment Replacement Plan)
6/21/10
Mon
WS - 2030 Vision Goals and Objectives; CC - Adopt 2011 -2015 CIP
6/20/11
WS - Technology Plan Draft (part of CIP)
6/22/10
Tues
City Manager & Department Managers meet to discuss program and
service directives outlined by the City Council, Departments begin
working on budget requests
7/6/10
Tues
WS - 2030 Vision Goals and Objectives for 2011 and EDA Authority
7/5/2011 ??
WS - Facilities Management Plan (part of CIP)
Issues
7/13/10
Tues
Deadline for departments to submit budget requests to Finance
7/14-7/21
Finance staff compiles budget requests
7/19/10
Mon
WS - Reserve Policy
7/18/11
* *WS - Future Park Analysis (part of CIP)
7/22-7/30
CM & FD review budget requests
8/2/10
WS - Transit Alternatives
8/1/11
CC - Public Hearing on 2012 -2016 CIP
8/16/10
Mon
WS - discussion of preliminary budget and property tax levy
8/15/11
WS - discussion of preliminary budget and property tax levy;
CC - Adopt 2012 -2016 CIP (with new Facilities Management
Plan & Technology Plan and updated Park Equipment
Replacement Plan)
9/7/10
Tues
WS Facilities Management Plan; CC - Adopt 2011 preliminary
9/6/11
CC - Adopt 2012 preliminary budget and property tax levy &
CC - Adopt 2012 preliminary budget and property tax levy &
budget and property tax levy & establish TNT public hearing date
establish TNT public hearing date (certification due to Scott
establish TNT public hearing date (certification due to Scott
(certification due to Scott County by 9/15/10)
County by 9/15/11)
County by 9/15/11)
9/20/10
Mon
9/19/11
WS N/A - Community Fall Fest
10/4/10
Mon
WS - Final Budget & Property Tax Levy
10/3/11
10/18/10
Mon
WS - Development Contracts and Planned Unit Developments
10/17/11
11/1/10
Mon
WS - Budget Discussion
11/7/11
11/15/10
Mon
WS - Water Quality Fund
11/21/11
12/6/10
Mon
CC - TNT Public Hearing - 6 p.m.
12/5/11
CC - TNT Public Hearing - 6 p.m.
CC - TNT Public Hearing - 6 p.m.
12/20/10
Mon
CC - TNT Public Hearing Continuation - (if needed)
12/19/11
CC - TNT Public Hearing Continuation - (if needed)
CC - TNT Public Hearing Continuation - (if needed)
CC - Adopt 2011 final budget /property tax levy (final certification due
CC - Adopt 2012 final budget /property tax levy (final
CC - Adopt 2012 final budget /property tax levy (final
1
12/28/10)
certification due 12/28/11)
certification due 12/28/11)
WS = Worksession CC = City Council Meeting
2/18/2011
2/22/2011
o� rxro�
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�NNEs
2012
Budget
Planning
February 22, 2011
► Workshop Schedule & Topics
► Format of Revenue & Expense Information
► Benchmarks & Comparative Data
► Property Tax & Financial Projections
1
2/22/2011
► Comprehensive Financial Management Policy
► Fund Balance Reserves
► Capital Improvement Plan
► Facilities Management Plan (NEW)
► Technology Plan (NEW)
► 2 -Hour Workshops?
3
2,
ffilmm
20.11
€
2010
2011
$Change %Chafe
_
Adopted
Adopted
10 -11
10 -11 i
Subtotal
Subtotal • Total
Total
GENERAL FUND
General Govemmen!
_ I
,
_
111 council Salaries
51,680 _
51,880
0
0.00%'
78.96% -
.
78.72%
121 PERA Contributions
2,584
2,584
0_
0_00%1,...,,_,3
122 F ICA Cont ributions ,
3.204.,
3.204
_,_..
0
4.90%'
. _ . 4.78% ...._..
__...._
123 MEDICARE Conldbutions
749.
749
_._....
0
0.00°k
1.14%
151 Workers Com - Insurance _
.136_
147
12
8.67
0.22%
201 Ofice SuPOlies _General
500
500
0
0.00°k,
078 % ,
0.74%
327 Communications - j__ . ,.
, .
3,500
3,000
, , „
(500)_,
14,29%-
5.35 %t
4.45%
331 Training & Cerlificahon I
_ _
1,750,
5,250
3,500
„-
200.00%,
2.67%:
7.79%
3611nsura Genera �•abilAY
1,100
-
(1,70J
10000%-
1.68%
000°k
437,Misc nse- General _
250
250
0
0.00%
0.38%1
0.37%
65,453
67,365
1,912
2.92%;
100.00 1 /6:
100.00% 0.54
015%
OF FRt0
f
C7 m
.
tovxcfi<P"
X�
4
2,
2/22/2011
2/22/2011
► 2030 Vision & Strategic Plan Performance
Objectives
"'Includes transfers to other funds for debt service, etc.
2/22/2011
INDICAT•• 111 19990 200(" 20030 200212 20030 2004a
2005 M
2006 V 2007C 20080 20090
2010 E43
Dwelling Units 5,267 5,645 5,883 6,210 7,153 7,882
8,051 8,345 8,476 8,653
8,715
SG 7PP 25r9 �� ; ay zi;� TM9
7 *
Building Permits -ALL 2,366 2,281 3,051 3,855 3,757 2,662 2,242
M � �M mg
ig=w
1,965 1,889 1,472 1,400
1,521
I 0
414
a 0 08 2:68Q
IF; 2
7 TI - 4, 2471
4 of Park WN Y
0§
jAcres of Parks 569
7-7=,,, 7
., ,F
q.2
617
810 932 994 994
1,004
P olice Ca 8,504 8,708 8,919 9,394 9,653
9,416
6681 11,1621 10,662 9,939
9,313
► Other Benchmarks?
► Specific Cities?
Important: Comparisons will be made from
year to year for established benchmarks
2/22/2011
( 6,966,052 f 7,212,517 , 7,661,820 7,929,856 8,400,446 8,400,446
Fund [1 270,0001 280,000; 290,000 320,000, 350,000 350,000
Fund -
rtFund' 135 000 270 000 €' 270 000
Debt Ser tice 50,40
e , �, �Y,882,557 3,082,261 � -- 3,226,968 3,212,074 3,30 3,350, 400
3 .__..._..
10,574,796
11,178,788
11,_598,930
12_,37_0,
,370,846
,..11.._. 10118,609,
Change from PreN0U9 Year E'
..
38,423 �
_ .._.. .
458,189
. _ ..
803,990
_
418,142
T/3,918�E
nge l , .N :oc
own of Change In Levies I
...Breaktl_.._.... .. .. _ .r-. .... ...
_ ..
._..
__ __.
,
Gen -
54
246,465, ,
,,449,303
268,036,
470,590 S.
1,379,943
EguipmeM RewMng Fund t.
10,000
10,000
,
10,000
30,000
30,000 €'
90,000
Rewldn Padc E ui Fund •:
-
-
-
Facilities Management Fund
- E
-
-
135,000
135,000]
270,000
Debt
83,874E
199,724
144,687
14,894
138,326, 1
._.
551,717
Total Change
39,4231
456,189
603,990
418,142
773,916'€
2,291,660
General
j
-0.78%
6.23%
3.50%
€
5.93%1
19.66%
Equipment RewMng Fund I'
3.85 %
3.70%
3.57%
1034%
9.38 %�;
34.62%
Rew1n Padc Equip Fund
0.00 %
0.00°/
0.00%
0.00%
0.00 %:
0.00°.0
Facilities Management Fund .,
0.00 %;
0.00%
6.00%
000%
-UND _ RESERVES: i i
s .._ _ __ _ . 1. _.... 0 .. .... . _..
lance : 60 4 35 1 , 5,703,435 5,453,435 5,453,435 . 5,453, "
ince 5,435 5,453,435 5,453,435 5,453,435 5,453,35
�_ __.___ _... _(.i _____ - _ .. ... . . .... .. .......____ _
E �
E; _ .. t' ._... .. .. . . .. _ ...
centaae � ji 44.1 %. 40.7% 39.9% . 38.5-/.' s
0
► Adds Value
► Council Members' decision making process
► Improves the Public's Understanding
► How their property taxes and fees are being
used
12
D
2/22/2011
Staff is seeking feedback:
► Workshop Schedule & Topics
► Format of Revenue & Expense Information
► Benchmarks & Comparative Data
► Property Tax & Financial Projections
13
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