HomeMy WebLinkAboutStrategic Plan and Optimum Condition Index o� r�o�P
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Prior Lake, MN 55372
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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
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• 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
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Ideal
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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
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these and any other relevant questions and provide the staff with direction as
appropriate.
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