HomeMy WebLinkAbout01 (A) - Environmental Scan, Focus Groups, Internal Survey Results
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
CITY COUNCIL AGENDA REPORT
ITEM: 1A
MEETING DATE: August 15, 2022
PREPARED BY: Lori Olson, Assistant City Manager
PRESENTED BY: Lori Olson
AGENDA ITEM: Environmental Scan, Focus Groups, Internal Survey Results
GOAL AREA
OBJECTIVE:
High-Value City Services
6. Seek community engagement through a variety of
communication methods to reach all residents.
RECOMMENDED ACTION:
No action required.
BACKGROUND:
In 2022, City leaders are developing a new strategic plan to set the vision and framework for the
future of Prior Lake. Later in August, the City Council and department heads will convene for a
planning session to identify City goals and priorities related to the strategic plan. Over the past
few months, several engagement efforts have occured to collect input for this session. The
results of some of these efforts will be shared at tonight's work session.
The City has retained Rapp Consulting Group to assist with strategic planning efforts. Cory
Poris Plasch, Senior Vice President of Rapp, will attend tonight's work session to share the
findings from the three stakeholder focus groups she facilitated as well as results of an internal
survey. In addtion, Assistant City Manager Olson will provide the findings from an envrionmental
scan, which examined the data and trends influencing the City both internally and externally.
ATTACHMENTS:
1. environmental_scan_web
PriorLakeMN.gov
Environmental Scan
August 2022
CITY OF PRIOR LAKE • PriorLakeMN.gov 3
Table of contents
Introduction 3
External overview 5
Internal Overview 11
Personnel Overview 12
Organizational Chart 13
Financial Overview 17
Conclusion 19
Introduction
This environmental scan was developed
in support of the City of Prior Lake’s
current strategic planning process. The
environmental scan examines demographic
data and tracks the trends that influence the
City. The results will be useful in shaping the
City’s goals and strategies moving forward.
This report begins with an overview of Prior Lake
followed by an analysis of external data that shows
how Prior Lake has changed statistically over the past
decade. The report then looks at data related to internal
City operations and how that information impacts City
services. The goal of the scan is to provide a common
understanding of the current environment and issues
affecting the City of Prior Lake, now and into the future.
This report will be one of several inputs, including a
community survey, that will be presented to the City
Council to develop the City’s new strategic plan. The
City’s most recent strategic plan was developed in 2017
and is ready to be refreshed to guide the City through
2030 and beyond. The new strategic plan should be
adopted by the City Council in late 2022.
The current strategic plan focuses City priorities under
the following goal areas:
n High-Value City Services
n Public Safety
n Desirable and Sustainable Development
n Transportation and Mobility
n Environmental Stewardship and Recreation
Prior Lake is a vibrant and welcoming life-long
community offering a high quality of life and
small-town feel.
Adopted in 2018, the City’s vision statement reads:
EXTERNAL OVERVIEW
About Prior Lake
Prior Lake is named after Charles H. Prior, a
superintendent at the Milwaukee Railroad, who
routed a track through land he owned in the area.
Prior Lake was platted in 1871 and was incorporated
as a village in 1891. From 1870 to the 1920s, Prior
Lake was primarily a farming town focused on
agriculture related commerce and development
because of the railroad.
At the same time, Prior Lake was a summer
resort hot spot due to the large recreational lake
and the opening of the Grainwood Hotel in 1879.
Through the 1920s to 1950s, Prior Lake was a typical
American small town experiencing moderate
growth. From World War II through the 1970s, Prior
Lake experienced significant growth and became a
desirable suburban, bedroom community outside
Minneapolis.
Today, Prior Lake, population 28,357 (2022), is
located in one of the fastest growing counties, Scott
County, in Minnesota. Prior Lake is a 19.5 square mile
developing suburb with a small-town atmosphere,
just 30 miles south of downtown Minneapolis. Prior
Lake features more than 54 parks on 1,000 acres,
over 92 miles of trails and sidewalks, 14 lakes, and
a charming downtown. Upper and Lower Prior Lake
are popular recreational lakes totaling 1,340 acres.
The City of Prior Lake is unique in that it is home
to the Shakopee Mdewakanton Sioux Community
(SMSC) and Mystic Lake Casino, the second largest
Indian Gaming Casino in the nation.
CITY OF PRIOR LAKE • PriorLakeMN.gov 5
6 CITY OF PRIOR LAKE • PriorLakeMN.gov
Population
Households
2010
22,796
2010
8,447
2020
27,107
2020
10,350
2030
32,500
2030
12,600
2040
37,600
2040
14,700
Introduction
One word can be used to illustrate the
future of Prior Lake: growth. As the statistics
below show, Prior Lake is growing not only in
population and households but also in area
through annexation. The City anticipates
the sale of approximately 450 acres of land
over the next few years. This transaction will
transfer this acreage from agricultural uses
to residential and commercial uses which
will elicit development opportunities for the
next several years. How the City plans for and
responds to this growth will define the future
of the community.
Date source: Met Council Community Profiles
Housing Type
Housing by Family Type 2020
2000 2010 2020
Single Family 4,592 5,952 6,925
Town Home 549 1,818 2,045
Multi-Family 444 940 1,200
Family with children
38.65%
Family no children
33.36%
Live Alone
23.21%
Non-family household
4.78%
CITY OF PRIOR LAKE • PriorLakeMN.gov 7
Geographical Size
Median Housing Value (2020 dollars)
Trends
2010
17.51 Square Miles
2020
19.59 Square Miles
2040
20.14 Square Miles
Prior Lake
$328
Scott County
$317
Metro Area
$271
n The population of Prior Lake is expected
to grow by 28% by 2040.
n The median household income is 24%
higher than the metro area.
n Homes in Prior Lake are almost 20%
more expensive than the metro area.
n Prior Lake is less diverse than Scott
County and significantly less diverse
than the metro area.
8 CITY OF PRIOR LAKE • PriorLakeMN.gov
Prior
Lake
Scott
County
7-County
Metro
Median Household Income 2020 $108.50 103.3 82.9
Household Size 2020 2.65 2.84 2.5
Home Ownership 2020 84.5%83.6 68.8
Education Level
(Associates degree and higher)62%54 55
Date source: Met Council Community Profiles
COMPARISON to county and metro area
Race & Ethnicity 2020
Prior Lake Scott County 7-County Metro
White 87%80 72
Non-White 13%20 28
CITY OF PRIOR LAKE • PriorLakeMN.gov 9
INTERNAL OVERVIEW
CITY OF PRIOR LAKE • PriorLakeMN.gov 11
The City of Prior Lake is a Statutory Plan B City
(council-manager), represented by five,
at-large City Council Members (including the
Mayor) who serve staggered, four-year terms.
The City Manager, appointed by the City Council,
develops the annual budget and manages the
operations of six department comprised of
103 employees.
City Departments
n Administration
n Community Development
n Finance
n Fire
n Police
n Public Works
The City’s Fire Department contracts services to
the City of Credit River and Spring Lake Township.
The City’s Police Department provides police
services to the SMSC.
The City’s 2022 Annual budget $35.2 million and
General Fund budget was $16.6 million, and the
City’s bond rating is AA+. Almost half of the City’s
expenditures are related to public safety.
2022 Budget Expenditures
Public Safety
49%
Administration
19%
Public Works
15%
Parks and
Recreation
14%
Community Development
2%
Transfers
1%
Advisory Boards
The City has four advisory boards that provide
opportunities for citizen input.
n Planning Commission
n Economic Development Authority
n Community Engagement Committee
n Arts and Culture Committee
PERSONNEL OVERVIEW
Personnel Trends
A long-range personnel plan is reviewed annually to monitor
staffing needs related to service levels. Although the City lags
similar sized metro cities in total employee count, the City has
made significant strides over the last five years to address
personnel needs. The Community Development department is
fully staffed, a reorganization of the Public Works Department
has streamlined services, key Administrative positions have been
added, and a plan is in place to staff a full-time Fire Department.
Most significantly, the Police Department has reached full staffing
after the addition of at least one police officer per year over the
last five years. Current service levels will not be possible moving
forward without the consistent addition of employees each year
as indicated in the long-range personnel plan.
Staff considered
essential employees
working in Public
Works or Police
74%
General fund
budget related to
personnel costs
73%
Recruitment and Retention
With an unemployment rate
of under 2% in Minnesota,
the market for hiring new
employees is extremely tight.
Wages, benefits, and flexible
work policies need to be
competitive to recruit and
retain high-quality workers to
the City of Prior Lake.
Seasonal Staffing
City services, like park
maintenance and recreation,
rely heavily on seasonal
staffing. College-age kids
are not working during the
summers like they have in
the past, opting to focus on
internships, travel, and sports
when off school. In addition,
hourly wages have increased
since the pandemic so there
is more competition for these
kinds of workers. Without
seasonal workers, City
services would need to be
reduced or eliminated.
Healthcare Costs
Health insurance premiums
continue to increase
significantly. These increases
are costly for both the City and
employees on family plans.
Healthcare premiums account
for 63% percent of the City’s
benefits budget. At the same
time, healthcare benefits
are critical to attracting and
retaining good staff. This trend
has no indication of slowing
down and could impact labor
negotiations and budgets for
years to come.
12 CITY OF PRIOR LAKE • PriorLakeMN.gov
Organizational Chart
Citizens
Mayor & City Council
City Manager
Public Works
City Attorney
(Contract)
Arts & Culture
Committee
Community
Engagement Committee
Economic Development
Authority
Planning
Commmission
Community Development Finance Administration Police Fire
Engineering
Facilities
Fleet
Recreation
Streets
Parks
Utilities
Planning
Zoning
Code
Compliance
Building
Permits
Inspections
Accounting
Accounts
Payable
Budgeting
Debt
Management
Payroll
Utility Billing
Treasury
City Clerk
Comms
Elections
Human
Resources
IT
Licenses
Patrol
Records
Investigations
Emergency
Mgmt
Animal Control
SMSC
City of
Credit River
Spring Lake
Twp
CITY OF PRIOR LAKE • PriorLakeMN.gov 13
Reside Outside
of Prior Lake
86%
Employee Stats
Employees
2018 2021
98 103
Female
20%
Male
80%
Gender
Age
Tenure
0-4 yrs
42%
5-9 yrs
27%
10-19 yrs
17%
20+
14%
under 30
12%30-39
31%
40-49
27%
50-59
23%
60+
7%
Reside in Prior Lake
14%
Infrastructure
Miles of Street
119
Miles Sanitary Sewer
141
Lift Stations
42
Miles Paved Trail and Sidewalk
92
Community and Neighborhood Parks
54
Police Calls
2018 2021
16,137 21,445
Kids in Recreation Program
2018 2021
743 1,650
Fire Calls
2018 2021
468 674
Utility Bills
2018 2021
9,007 9,629
Building Permits
2018 2021
2,581 2,839
Building Inspections
2018 2021
4,775 6,396
Total Building Permit Valuation
2018 2021
$75.2 $84.4 million million
City Services
CITY OF PRIOR LAKE • PriorLakeMN.gov 15
Top CIP Projects through 2030 are below:
Ladder Truck (2025)$1.5 million
Pumper Truck (2030)$1 million
Jet Vacuum for Sewer (2030)$580,000
City Hall Roof (2026)$393,000
Dump Truck (2029)$317,000
Library Parking Lot (2025)$300,000
(costs are estimates for planning purposes)
CITY OF PRIOR LAKE • PriorLakeMN.gov 17
FINANCIAL OVERVIEW
Financial long range
Through a long-range financial plan, the City
works to identify the funding needs and solutions
to maintain current service levels, address the
needs of a growing city, and provide budget
stability. A goal of this effort is to minimize
annual variation in the tax levy and to reduce
debt. The primary service priorities include
personnel, equipment replacement, facilities,
parks, pavement management, and Economic
Development Authority (EDA) funding.
Debt management is an integral part of
the financial management of the City. Debt
management aims to stabilize the overall debt
burden and future tax levy requirements to ensure
that issued debt can be repaid. The City is steadily
paying down existing debt, while conservatively
issuing new debt. The City Council supports
incremental increases in the tax levy to support
the long-term plans of the Capital Improvement
Program (CIP) with the goal of building cash
reserves to minimize future debt and to meet our
capital replacement needs.
18 CITY OF PRIOR LAKE • PriorLakeMN.gov
n Adopting a property tax model that takes
into account the cost of inflation and
community growth when establishing the
tax levy.
n Implementing franchise fees to fund
pavement management projects.
n Updating the utility rate model into a tiered
water and sewer rate structure based on
usage while also increasing base fees to
provide funding for fixed costs.
n Refunding debt for total interest savings of
$796,350.
n Utilizing federal grant funds, such as CARES,
APRA and SAFER grants, to offset the cost of
major planned expenditures.
Over the past few years, major financial
policies have been implemented to put the
City on a good path financially, including:
Finance trends
n Increased property valuations: In 2022
assessed values increased by 18.4% across
all property types.
n Growth in tax base: The City continues
to experience growth in residential
development. New construction added
about $83 million in estimated market
value to the tax base for 2023. 9% of the
City’s increase in market value was from
new construction.
n General Fund balance: Based upon the
long-range financial plan, the reserve
balance is planned to be between 40%-
50% for 2023-2027.
n Personnel costs: Personnel continues to
be the largest component of the annual
budget. A competitive hiring market
impacts the ability to recruit and retain
employees. A market wage study will be
necessary in the next couple of years.
n Tax rate: The City is educating
stakeholders about the significance of the
tax rate versus the tax levy to explain how
services should be funded. Prior Lake has
the lowest tax rate in Scott County.
n Parks maintenance and replacement
funding: City leadership needs to identify
a plan for maintaining and replacing
existing neighborhood parks as there is no
dedicated funding source for this effort.
The information outlined in this
environmental scan provides a broad
overview of current conditions to help
inform the strategic plan. Overall, the City
is in a good place with a solid general
fund reserve balance and adequate
staffing. Adhering to the long-range
financial, debt management, and
personnel plans will be important
moving forward to remain that way.
CITY OF PRIOR LAKE • PriorLakeMN.gov 19
CONCLUSION
n Transitioning from a paid-on-call to full-time Fire Department. The City has applied for
a federal grant, which would help ease the financial burden of this important public
safety service.
n Parks and trails maintenance and enhancement. The estimated annual funding shortfall for
neighborhood park renovations and trail maintenance is about $500,000 per year. This does
not include improvements to ballfields or community parks like Lakefront Park or Sandpoint
Beach. A park referendum is an option that needs to be explored to help fund this gap.
n Managing ‘pay go’ versus debt issuance while addressing city infrastructure replacement
needs. Funding for water and sewer infrastructure replacement past the year 2027 is
inadequate and may require an increase in rates and/or the issuance of debt.
n Technology continues to evolve and become more integrated into all City services,
especially in the Police Department. Software costs, particularly annual licensing fees, have
increased significantly, and cybersecurity is a constant issue.
n The Public Works Maintenance Center requires an expansion and renovation. No funding
source has been identified for this major capital improvement.
n Prior Lake is not done growing and will continue to annex surrounding farmland. Orderly
annexation planning and related infrastructure costs need to be addressed.
Challenges over the next ten years, as identified by City Department Heads, include:
City of Prior Lake
4646 Dakota Street SE
Prior Lake, MN 55372
PriorLakeMN.gov
Prepared by
Lori Olson, Assistant City Manager
August 2022