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HomeMy WebLinkAboutStrategic Plan and Optimum Condition Index o� r�o�P � � v � 4646 Dakota Street SE Prior Lake, MN 55372 �S�� WORK SESSION AGENDA REPORT MEETING DATE: October 7, 2013 PREPARED BY: Frank Boyles, City Manager PRESENTED BY: Various Staff Members AGENDA ITEM: TOPIC 1- Strategic Plan Performance Metrics and OCI DISCUSSION: I ntroduction The City Council has scheduled a work session to review the financial performance metrics published annually as part of our 2030 Vision and Strategic Plan. The staff would like to discuss other metrics with the City Council as well. Histo The 2030 Vision and Strategic Plan originated in 2002. As part of the "Strong Financial Management" vision element, a goal was identified to prepare financial performance metrics to share with the public each year. The strategic plan perFormance metrics include the following: Standard Objective • Property tax rate Be the lowest in Scott County • Bond rating Retain Aa2 • General Fund balance Maintain a 45% reserve • Investment level Keep 97% invested • Property tax ratio Keep at 60 / 40 • Fire Relief Association Pension 100% funded • Budget outcome Attain 98% These metrics have been shared with the public every year and displayed in various ways. At first the metrics were displayed as a report card with grades. Now they are displayed as standards together with the present status of each. Current Circumstances These metrics have stood the test of time albeit not without critics. Some have argued that the property tax rate, which is our only metric which compares Prior Lake to other Scott County cities, is not comprehensive. It fails to address the comparative revenue sources of each community (e.g.,,some charge franchise fees while others do not, some receive fiscal disparities while others do not, and so forth.) In response to these types of concerns, City Councilors have supported metrics which are per capita or per household based as better proxies. Below are some alternative or additional metrics the Coun,cil may wish to consider adding to or replacing certain of our current metrics: Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com � • Tax levy per household • Tax levy per capita • Debt service per household • Debt service per capita Still other metrics include: • Total City services cost per average value home • Historical property tax base • Historical property tax base by classification (residential, commercial / industrial) • Historical property tax levy rate changes • Tax impact on median or average priced residential or commercial property The City Council should consider which of the metrics the City should continue to use and those which could be added or substituted. We recommend that the total number of inetrics remain in the seven to nine range. Overall Condition Index (OCI) Perhaps one of the most important, but least talked about or understood, metric the City has is the Overall Condition Index (OCI). The OCI is a numerical indicator of the condition of each of the City's 100 miles of streets. Over next five years we hope implement a numerical indicator of the overall condition of our domestic water infrastructure, sanitary sewer, water quality infrastructure and trails/sidewalks. From our Pavement Degradation Study we learned that it is most cost effective for the City to extend street life through regular maintenance (crack sealing, seal coating and overlay) rather than complete reconstruction. We also learned that to maintain our street inventory at present OCI we should be constructing or reconstructing 1.68 miles of City street, overlaying 3.37 miles and seal coating 6.75 miles each year. A comparison between what we are doing and the ideal is shown below: Current . . . .. . � ,��� ��� • - . � � -- . - � �� ��� � . . ��� Ideal • a • . - .. . � � ��� � - - . � ��i -- . .: �, . � ��� � . . �: ��� 2 ... The streets which are reconstructed, overlaid or seal coated are identified for inclusion into our Capital Improvement Program by OCI. Of course, confirmation takes place through in person inspection. Public Works and Natural Resources Director Katy Gehler and her staff will provide a brief presentation about the Pavement Degradation Study and the OCI as this metric is important in determining which City projects are recommended for inclusion in the CIP each year. R eports The City Council receives a wide variety of reports at various frequencies. Each report to a greater or lesser degree contains a variety of ineasures or metrics. The most comprehensive and scientific report the City receives is the 140-question Decision Resources Community Survey which we seek to repeat every 24 to 36 months. The Survey uses scientific sampling techniques that allow the observations made by 400 residents in 140 areas to be projected to represent the entire population with a 95% confidence level. The Survey provides input on our most important services and is the broadest and most detailed metric the City Council and staff receive. It is intended to be used to provide data for updating the City's most important documents: the 2030 Vision and Strategic Plan, Capital Improvement Program and budget. In staff's opinion, this is a document which could be better utilized in assessing our services and organizational direction. The City Council also receives a wide variety of other documents and reports, some of which are much less sophisticated than the community survey but provide a wide variety of important information nonetheless. Categorized by frequency they are: Annually Quarterly Monthly Budget Grants and donations Police CIP Investments Fire Strategic Plan Animal Control Code Enforcement Building Summary EDA Report Transit Advisory Committees Claims (bi-weekly) Variances Treasurer These reports are replete with volume indicators. They are largely unrelated to one another. Conclusion From a metric perspective, the City Council has a wide variety of data and reports to choose from. The City Council may wish to discuss whether all of the reports are useful. There is also the question of whether the reports tell the Council what it needs to know do its job. Should our reports be more high level like the Survey and Strategic Plan? Do numerous detailed reports help the Council to do their job or do they trap the Council in minutiae? The council may wish to deliberate over � 3 these and any other relevant questions and provide the staff with direction as appropriate. 4