HomeMy WebLinkAbout06 07 2021 Long-Range Financial Planning - Workshop 6.7.2021Financial Planning Update
June 7, 2021
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Five-Year Property Tax Projection Scenarios
Comparative information – State-wide averages by population class
Base + Pavement Management Plan funding with franchise fees
Debt and Debt Levy Impacts
Council Direction on Planning Assumptions
Next Steps:
Begin 2022 budget process
Proceed with implementation of franchise fees based on Council direction
Agenda
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Comparative Information
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City governmental revenue per capita is below the state-wide average.
The Franchise and Other Tax Category is half of the state-wide average. Many cities use franchise fees to fund their pavement management plan. It is a well-established practice
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Comparative Information
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City governmental expenditures per capita are below the state-wide average.
Street and Highways expenditures are 50%-60% below the state-wide average.
Without a dedicated funding source, we cannot implement a pavement management plan.
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5-Year Projection
Base +PMP Franchise Fee Funding
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The plan presented funds the city’s base funding priorities PLUS the pavement management plan while maintaining the tax rate over the next five years at lower rates than 2017-2019
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5-Year Debt Projection
Base +PMP Franchise Fee Funding
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Based on the projects in the CIP, the plan projects debt outstanding to decrease from $36.6M at the end of 2021 to $31.3M at the end of 2026
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5-Year Debt Projection
Base +PMP Franchise Fee Funding
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The tax levy portion of the pledge of revenue is decreasing over time.
The MSA supported debt in 2022 and 2023 for Downtown South and Fish Pt Rd Phase II projects.
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5-Year Debt Projection
Base +PMP Franchise Fee Funding
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Over the next five years, debt per capita decreases as the city manages its debt load and as the city continues to grow.
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5-Year Projection
Base +PMP Franchise Fee Funding
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Scott County Tax Capacity Rate by City:
Scott County Comparative Tax Rate Information
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City Levy/Tax Capacity = Tax Rate
* includes the EDA levy for comparative purposes
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Base Priorities and Funding:
Building permits of 150/year
SMSC aid for Policing – incremental annual increase
Grant revenue for implementation of Fire duty crew staffing model
Fire service contract with townships – incorporates financial impact of duty crew model in 2026
Estimates for revenues/expenditures to maintain General Fund balance at 45-50%
5- Year Projection Assumptions
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Base Priorities and Funding:
Staffing Changes per Personnel Plan
2022:
Admin. Assistant (front desk)
Assistant Fire Chief
Police Officer
Police budget impact of 2021 mid-year wage adjustment
2023-2026:
Fire Duty Crew staffing model (8 FTEs)
One Police Officer/year (4 FTEs)
Public Works/Finance/Admin (combined 2.6 FTEs)
Commitments to long-term plans (CIP)
Debt obligations (existing and proposed)
5- Year Projection Assumptions
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Include growth in tax capacity and market value assumptions
5- Year Projection Assumptions
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Pavement Management (PMP)
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Pavement Management
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Pavement Management Tax Levy Option 1:
Pavement Management funding via tax levy increase
Pavement Management Franchise Fees Option 2:
Pavement Management funding via gas and electric franchise fee increase dedicated to pavement management.
Pavement Management Funding Options
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Pavement Management Funding Options
Franchise Fees Option 2
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Pavement Management
Funding Options City Tax Levy and Tax Rate Impact
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5-Year Projection
Future Funding Needs
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Parks Master Plan Funding
Funding shortfall of $450k/year in 10 yr. CIP for ongoing Park replacement
No funding plan for Sand Point Beach and Lakefront Park major improvements
2022/2023 budget development/potential funding needs
Police and Fire Technology needs (firehouse upgrade/Police card reader replacement)
Scott Co. joint prosecution JPA
Strategic Planning/Community Survey
Election poll pad replacement
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2022 budget development
Implement franchise fee change
Next Steps
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Does Council support the financial planning assumptions that are driving the 2022-2026 tax levy and tax rates?
Does Council support staff recommendation to provide funding for the city’s pavement management plan via an increase in the electric and gas franchise fee to be dedicated to pavement
management?
Council Discussion
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