HomeMy WebLinkAboutJune 2, 2003FRANK BOYLES
TO:
SUBJECT:
May 28, 2003
MAYOR HAUGEN AND COUNCILMEMBERS
June 2, 2003 Budget Work Session No. 1
The City Council will conduct its first 2004 Budget Work Session on Monday, June 2, 2003 beginninq
at 5:30pm. Attached is a budget adoption calendar for the 2004 document. The timeline has been
prepared considering the Truth-in-Taxation requirements. The City Council was originally scheduled to
conduct a budget work se~ssion on June 16th. Since it has become necessary to utilize the June 16th
date for a County Road Improvement work session, we have moved the budget work session forward.
The purpose of the first budget work session is to hear City Council concerns about the present level of
services which are most likely to be preserved in next year's budget. We are interested in knowing the
program areas where the Council desires to see modification, especially if such action impacts the
budget.
As you are well aware, Prior Lake is a rapidly developing municipality whose valuation base is growing.
This growth in valuation helps to dampen the taxpayer impact of tax levy increases required to provide
services to our developing community. In 2004, the City will not be able to utilize this valuation growth.
The legislature has established a "hard levy limit' which amounts to last year's levy in dollars, plus 60%
of the amount lost by State cuts in Local Government Aid and Market Value Credit. For next year, tthis
will leave our collectable levy for 2004 with a $160,000 shortfall.
Accordingly, we are advising our independent contractors for such services as refuse, custodial,
auditing, animal control, etc., that their costs for 2004 will need to remain the same as in 2003. Because
of the 2004 levy limits, it will be difficult to undue the cuts made in 2003budget in response to the LGA
and Market Value cuts, especially because I believe it is only a matter to time before the State cuts the
Market Value Credit- again. Also, the economy appears to be softening again which could result in
placing the State again in a deficit position.
At the same time, our State-controlled revenues are more or less frozen, our labor costs are rising as
result of collective bargaining agreements previously negotiated. Therefore, if program enhancements
are desired, they will need to be accomplished by cutting other programs, doing things at less cost,
eliminating programs, developing new revenue sources, or utilizing special levy authority if appropriate.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
The 2004-2008 Capital Improvement Program, which the Council will consider adopting tonight, will
affect staff workload for 2004 and should be considered in any program or budget discussions. I have
also attached a copy of the 2003-2005 Tactical Plans from which we will draw our 2004 objectives. Our
aggressiveness in defining 2004 Objectives will be affected by the 2004 budget. Feedback is desired as
follows:
· Are there programs that need improvement?
· Are there programs which should be eliminated?
· What new programs are desired?
· What Tactical Plans are essential for 2004 completion?
· Are there other revenue sources the Council believes should be considered?
From a taxpayer perspective, local government property taxes are almost certain to go down as a result
of the levy limit.
I:\COU NCI L\WORKS~2003\budget #1. DOC
2002-2005
Tactical Action Plans
The 2020 Vision Elements can be completed by doing the following in the next three years. The
numbers in pamn~eses following each corru2onent ident~ how the component relates to the
2020 Vision Elements identified in Section 4.
FinalteJai
1. Experience no net loss ofbuslnesses in the .City. (1)
2. Add at least five new businesses to the community. (1)
3. Open 58 acre business park to provide hnd fornew businesses. (1)
4. Analyze City us er fees for adequacy. (2) and (3)
5. Support statutory changes which would expand user fee authority (2)
6. Minimize dependency on state orfederal revenue sources (5)
7. Annually set aside funding for needed infrastmctme. (4) and (5)
1. Secme Watershed approvals forstorm water needs. (1)
2. Assist in site plan development which is consistent with the Downtown
Plan. (1)
3. Coordinate streetscape improvements adjacent to Lakefront Plaza. (1)
4. Identify businesses for facade improvement. (2)
5. Work with identified businesses to complete facade improvements. (2)
6. Contract with consultant to prepare alternate parking plans for Downtown
including cost and revenue analysis. (3)
7. Prepare Comprehensive Plan and Zoning Ordinance amendment for
Downtown area. (3), (4), (5), (6), (10) and (11)
8. Identify target areas for stmetscape/pedestrian campus improvement
together with funding analysis. (6)
9. Assess needs, estimate costs, and recommend location, financing and
design for new City Hall / Police Station and Community Center (7)
10. Evaluate retention/demolition of existing City Hall (8)
11. Demolish Police annex for redevelopment property Downtown. (8)
. .
12. Work with developers of 5-acre property to identify retail condominium
project. (9)
13. Work with developers of marina expansion proposal. (11)
1. Contract with commemial real estate firm to identify desirable businesses
likely to develop in Prior Lake. (1)
2.. Identify most appropriate promotional angle and mls. (1)
3. Develop and initiate promotional effort. (1)
4. Open 58-acre business park property. (2)
5. Simplify approval processes in at least two significant activity areas. (3)
Hou, ng (aua ity and Oi'we ,ity
1. Establish a committee to identify short-comings in housing availability and
recommend City actions to address needs. (1)
2. Work with major employers to evaluate l"-time homebuyers program
guidelines. (2)
3. Work with Metropolitan Council and HRA on affordable housing projects
such as Bluff Heights and Jeffers Pond. (3)
1. Assess needs, estimate costs and recommend location, financing and
design for new City Hall / Police Station and Commtmity Center. (1)
2. Work with County to acquire 26-acre parcel. (2)
3. Complete Well No. 7 in 2002. (3)
4., Complete Well No. 8 in 2003. (3)
5. Complete all projects as set forth in the Capital Improvement Progran~
1. Contract with a firm to prepare a surface water quality plan for the City. (1)
2. Work with the Lake Adviso~ Committee to complete Capital Improvement
projects relating to storm water. (2)
3, Work with Watershed on preparing a management plan for all City lakes.
4. Develop a committee of appropriate parties to develop long-range
recommendations for lake access and use. (4)
5. Complete Wells No. 7 and 8; emphasize conservation in public relatiOns
mate :as. (5)
6. UfiliT. e phosphorus-flee fertilizers, follow herbicide warning labelS and
address playfield storm water on site to the extent possible. (6)
1. Complete Commerce/Boudin improvements as part of development. (1)
2. Complete 150m Street and THD as a cooperative effort to serve School
District (1)
3. Complete Ring Road. (1)
4. Re-design THD / CSAH 21 / Main Stxeet intersection as part of City Hall
or Lakefront Plaza / Main Street improvements. (2)
5. Atxend meetings, write letters as necessary to support CSAH 21 Completion
(3).
6. Evaluate additional routes for Laker/_~es along TH 169 corridor and 1-35E
to St~ Paul. (5)
7. Work with the Metropolitan Council and Scott County to identify
enhancements to dial-a-fide services. (7)
8. Evaluate and update park and trail portion of Comprehemive Plan to assure
connections between neighborhoods. (8)
9. Complete Regional Trail (8)
1. Develop and implement a plan for finalizing Prior Lake boundaries. (1)
2. Work with Jeffers Pond developers to preserve Fire Station and elementary
school site. (3) ',