Loading...
HomeMy WebLinkAbout01(B) - Long Range Financial Plan ReportAttachment 2 CITY OF PRIOR LAKE CITY PROPERTY TAX PROJECTION - SCENARIO A - without Park Referendum 2025 Certified 2026 Projected 2027 Projected 2028 Projected 2029 Projected 2030 Projected 2031 Projected 2032 Projected 2033 Projected 2034 Projected 2035 Projected 10-Year Annual Average Change in Tax Rate 10-Year Increase In Debt Service Payments with 10-Year Increase In Bonds Outstanding with Park Referendum TOTAL % CHANGE IN TAX LEVIES 6.2%10.5%5.9%8.0%6.7%8.3%6.3%6.2%5.2%4.4%12.7%7.4% CITY TAX CAPACITY TAX RATE 30.50%32.25%33.41%35.23%36.33%38.07%38.99%39.63%39.87%39.92%43.13% Annual % Change 5.7%3.6%5.4%3.1%4.8%2.4%1.6%0.6%0.1%8.0%3.6% Total Debt Service Payments 5,596,377 5,756,796 6,034,053 5,974,857 7,353,229 7,370,553 7,776,267 7,935,294 9,914,873 9,964,282 11,401,783 Total Cumulative Debt Service Payments 5,596,377 11,353,173 17,387,226 23,362,084 30,715,312 38,085,865 45,862,132 53,797,426 63,712,299 73,676,581 85,078,364 Bonds Outstanding 26,205,000 30,385,000 33,510,000 50,930,000 53,030,000 54,125,000 63,075,000 93,605,000 99,150,000 102,990,000 103,385,000 CITY PROPERTY TAX PROJECTION- SCENARIO B - with Park Referendum 2025 Certified 2026 Projected 2027 Projected 2028 Projected 2029 Projected 2030 Projected 2031 Projected 2032 Projected 2033 Projected 2034 Projected 2035 Projected TOTAL % CHANGE IN TAX LEVIES 6.2%10.4%5.8%8.0%13.1%13.3%11.4%3.2%4.6%3.8%11.2%8.5% CITY TAX CAPACITY TAX RATE with Park Refer 30.50%32.25%33.41%35.23%38.69%42.55%45.80%45.56%45.54%45.35%48.31% Annual % Change 5.7%3.6%5.4%9.8%10.0%7.6%-0.5%-0.1%-0.4%6.5%4.8% Total Debt Service Payments 5,509,960 5,756,796 6,417,479 7,358,777 10,366,312 10,433,888 12,624,211 12,353,194 14,343,373 14,394,429 15,829,858 Total Cumulative Debt Service Payments 5,596,377 11,353,173 17,770,652 25,129,430 35,495,742 45,929,630 58,553,840 70,907,035 85,250,407 99,644,837 115,474,695 30,396,331 Bonds Outstanding 26,205,000 36,050,000 55,730,000 94,645,000 96,220,000 116,260,000 123,675,000 152,605,000 156,465,000 158,540,000 157,090,000 53,705,000 PERSONNEL PLAN 2026-2030 2026 – 2030 Personnel Plan / Page 2 INTRODUCTION Similar to how the City plans its infrastructure and equipment needs through the Capital Improvement Plan (CIP), this Personnel Plan is designed to address the staffing needs required to support the anticipated demand for City services as Prior Lake grows. The general fund budget is dominated by personnel costs (71.6% of the total budget in 2025) which explains why planning for personnel is critical for long-range planning. This Plan projects the anticipated staffing requirements for the City of Prior Lake by 2030. It will be revisited annually to adapt to the evolving needs and expectations of the community. The objectives of the plan include: • Informing annual and long-range budget discussions and decisions; • Forecasting future demands for service; and • Identifying the resources required to perform current service levels in the future. This five-year document will be incorporated into the City’s long-range financial plan and will be updated each year to inform the annual budget process. Departments will be responsible for providing the metrics to justify the personnel requests and impact on current service levels during annual budget deliberations. This document focuses only on the need and rationale for each position request. The discussion on how the City will fund these positions will be held through the annual budgeting process in consideration with other budget requests like the CIP. The City Council will determine the addition and timing of bringing on any new staff. BACKGROUND City staff provide essential services to 28,915 residents (2023 Met Council population estimate) over nineteen square miles, not including the recent annexation agreement with Spring Lake Township. In addition, the residents of Spring Lake Township, the City of Credit River, and the Shakopee Mdewakanton Sioux Community (SMSC) receive public safety services from the City. Prior Lake has grown at a steady pace of about five hundred residents annually in one of the fastest growing counties in Minnesota. The Metropolitan Council forecasts Prior Lake’s population will grow to 37,600 residents by 2040. Cities do not grow solely in terms of population or households as the services -- infrastructure, parks, public safety, and technology, to name a few – that are required to accommodate such growth must expand as well. These services are supported by municipal employees togethe r with the equipment, supplies and training necessary to execute their functions The City of Prior Lake currently operates with 121 employees. The majority (75%) of employees work in Public Works, Police Department, and Fire Department, most of whom are considered essential employees. The City hires around fifty seasonal and temporary positions each year and employs 26 paid on-call shift firefighters/EMTs. 2026 – 2030 Personnel Plan / Page 3 PERSONNEL NEEDS THROUGH 2030 Below is an overview of the projected staffing needs to maintain current service levels through 2030. Community Development, Finance, and Public Works have added or repurposed positions in the past few years and should be adequately staffed through 2030. Administration and the Fire Department have identified positions to round out those departments’ staffing needs. In 2024, the Police Department completed a workload study with an external consultant, and the results were presented to the City Council in February 2025. The findings of that study are incorporated into this Plan. On the following pages, each department is profiled with a summary of all current and proposed positions within the department and a rationale for each new FTE request. *One added position in the Police Department is budget neutral due to schedule and overtime savings. Department 2026 2027 2028 2029 2030 Administration (8) 1 1 - - .62 Community Development (10.8) - - - - - Finance (6.8) - - - - - Fire (15) - - 3 - - Police (39.42) 3* 2 - 1 1 Public Works (41) - - - - - Total New: 4 3 3 1 1.62 Total City Headcount (121.02) 125.02 128.02 131.02 132.02 133.64 2026 – 2030 Personnel Plan / Page 4 DEPARTMENT PROFILES 2026 – 2030 Personnel Plan / Page 5 ADMINISTRATION *2026: Network Administrator (1 FTE). The city needs a full-time network administrator to assist in the management and oversight of the city’s IT infrastructure, networks, server operations, security systems, and software. There is simply too much work for two employees to manage in a city our size (comparable cities average IT 3.5 FTEs). Prior Lake’s IT division supports over 1,300 devices for 121 employees and 16 servers in seven buildings. A major reason for the need for IT help is the Police Department. One full-time employee could support PD alone with the evolving technology related to law enforcement (body cams, dash cams, squad tough books, video rooms, building security, LETG, etc.) and, more importantly, unfunded CJIS (criminal justice information services) security mandates from the MN Bureau of Criminal Apprehension (BCA). The current IT Specialist’s primary responsibility is responding to the city’s help desk (1,100 help desk tickets in 2024), the City’s phone system, Microsoft outlook security training, and printer/copiers. That leaves one person, the IT Manager, to perform all the other technical support functions related to systems maintenance of the local area networks (LANs), administration of personal computer workstations and peripherals, security administration, technical support to users, troubleshooting of hardware and software problems, and installation of hardware equipment and software applications (Laserfiche, BS&A), onboarding/terminating employees, building access and cameras etc. A cyber security risk assessment conducted in 2024 rated the city poor in most policy categories and several process improvements, such as online licensing and payment, have not moved forward because the IT Manager gets pulled away with break and fix items. The Network Administrator could assume many of the higher-level technical aspects of the city’s IT needs so the IT Manager can focus on developing a cyber security program and policies, budgeting, long-range planning, researching products and devices while also providing technical support. *2027: Administrative Assistant (1 FTE). This will be a hybrid position that will support the Fire Department, City Manager, and staff the front desk of City Hall. By 2026, the full-time Fire Department will have been functioning for three full years, including implementing a fire inspection and fire pre-plan program for all commercial buildings along with strengthening its fire prevention and public education programs. Administrative support will be required to assist with scheduling inspections, building walkthroughs, follow-up paperwork, and to organize public education events. The position will also assist with the administration of Fire/EMS reporting, inspections, and Fire’s permitting software platform. As for City Hall, we anticipate transitioning the Deputy City Clerk away from reception area duties into full-time clerk duties because of increased election administration mandates and records management needs. The Administrative Assistant will greet customers, answer phones, check mail, and conduct front desk tasks so the Deputy City Clerk can focus full-time on clerk duties. The City Manager also requires administrative support for scheduling, correspondence, and other executive assistance. These duties used to fall to the combination HR support/executive assistant position which transitioned to full-time HR duties in 2022. Finally, the proposed Administrative Assistant will receive training on some utility billing tasks to serve as backup and additional support when necessary. 2026 – 2030 Personnel Plan / Page 6 *2030: Communications Specialist/Graphic Designer (.62 FTE). Communicating with the public is a core city service, and as a local government, we are obligated to provide timely, relevant information to our citizens to ensure transparency and accountability. With only one full-time communications employee, taking advantage of the multiple mediums (e.g., videos, social media content, press releases, news items, website updates, etc.) to reach a broad spectrum of residents is a challenge. Additional support is needed to help manage the City’s website and to create graphics for all communication mediums and City departments. Peer cities average 2.5 communications FTEs. Total FTEs in 2025 – 8 Administration 2026 2027 2028 2029 2030 City Manager 1 1 1 1 1 Assistant City Manager 1 1 1 1 1 City Clerk 1 1 1 1 1 Deputy City Clerk 1 1 1 1 1 HR Coordinator 1 1 1 1 1 Communications Manager 1 1 1 1 1 Communications Specialist - - - - .62* IT Manager 1 1 1 1 1 Network Administrator 1* 1 1 1 1 IT Specialist 1 1 1 1 1 Admin Assistant - 1* 1 1 1 TOTAL: 9 10 10 10 10.62 2026 – 2030 Personnel Plan / Page 7 COMMUNITY DEVELOPMENT The department is anticipating the retirement of two key staff members in the near future which will require replacement; however, no new personnel additions are anticipated through 2030. The last position added in Community Development was a full-time Building Inspector in 2021. The new Building Inspector position was necessary due to the increased demand for inspections, plan review, and permit issuance and the first two years’ salary was partially funded by a Department of Labor and Industry grant. In addition to plan review and assisting customers at the counter, the city issues over 2,800 building permits and conducts 6,000+ building inspections per year; it is common during the busier times of year for each inspector to have over twenty inspections on their daily calendar. Code enforcement opens and closes over 500 cases per year and generally completes over 1,500 inspections. Current staffing levels should meet the demand for services for the foreseeable future. Total FTEs in 2025 – 10.8 Community Development 2026 2027 2028 2029 2030 Comm Development Director 1 1 1 1 1 Building Official 1 1 1 1 1 Building Inspector 3 3 3 3 3 Code Enforcement Officer 1 1 1 1 1 Planner 2 2 2 2 2 Development Services Assistant 2.8 2.8 2.8 2.8 2.8 TOTAL: 10.8 10.8 10.8 10.8 10.8 2026 – 2030 Personnel Plan / Page 8 FINANCE In 2025, The Assistant Finance Director moved into a full-time position from a .8 FTE, and the Financial Analyst transitioned to a part-time position. The Finance Department continues to provide alternative work arrangements to attract and maintain qualified and talented staf f with the necessary technical, analytic and leadership skills to perform the work requirements of the Finance Department positions. *2026/2027: On August 22, 2024, the federal government released proposed rules related to the Financial Data Transparency Act (FDTA). This first proposed rule seeks to establish general guidelines for additional regulations. This law mandates that certain data and financial information provided must be sent in a ‘structured data’ format after the rules are finalized (sometime in 2026 or thereafter). This effort to create new universal reporting categories will have minimal value to transparency efforts and would be a significant cost to state and local governments. This unfunded mandate would require extensive staff time along with the need for consulting resources and potentially risky updates to government financial systems. This mandate poses a challenge as utilizing a specific technology for governmental and nonprofit financial reporting would require identical financial reporting taxonomies across all types of public entities. Given the wide variety of governments and non-profit entities(e.g., states, cities, counties, water systems, public power, public gas, hospitals, etc.), combining all into a single standardized template has the potential to lose valuable information and to reduce transparency by eliminating detail specific to the unique functions or services that governments provide. Transitioning to or potentially adding new reporting categories would require changes to underlying financial systems. The la w does not provide any financial assistance with these transition costs to hire consultants, reconfigure financial systems, or implement new software or to assist with the ongoing staffing costs to support this additional reporting burden. If the proposed rules become law through regulatory r equirements, additional staffing at the Senior Analyst/Senior Accountant level may be required. Total FTEs in 2025 – 6.8 Finance 2026 2027 2028 2029 2030 Finance Director 1 1 1 1 1 Asst Finance Director 1 1 1 1 1 Sr Financial Analyst/Sr Accountant 1 1 1 1 1 Financial Analyst .8 .8 .8 .8 .8 Account Specialist 1 1 1 1 1 Utility Billing Clerk 2 2 2 2 2 TOTAL: 6.8 6.8 6.8 6.8 6.8 2026 – 2030 Personnel Plan / Page 9 FIRE 2026: In 2025, the Fire Department (FD) moved to professional paid-on-call (POC) shift firefighters for a variety of reasons. The new model means the FD now only hires trained, certified firefighters/EMTs who are assigned specific shifts. In the past, FD hired individuals who were not certified to state standards, required training, and worked on-call only. By making the change in hiring requirements and scheduling shifts, FD has more reliable, professional support than with the old model. There are currently 26 POC firefighters/EMTs, and the 2026 budget includes a request for a wage increase from $17.50/hr to $21/hr. This increase is necessary to keep pace with other departments’ POC wages and to acknowledge the training and background of current POC firefighters/EMTs. *2028: Firefighter (3 FTE). In the fall of 2024, the FD became the primary responder for all medical calls. As a result, there has been a 60% increase in the number of call responses. We expect this number to increase as the community grows. The Department took significant steps to handle this increase by putting a lite rescue vehicle in service, adding shift assigned POC firefighters, and separating crews into two vehicles. This change has made the FD’s medical response more efficient and keeps the other apparatus clear to answer other calls. The request to add three additional firefighters (one firefighter per shift) will enable the FD to put an additional apparatus into service 24 hours per day to meet the anticipated rise in calls as the area grows. This also means the FD can continue its non-emergency duties while providing effective and efficient emergency coverage. Total FTEs in 2025 – 15 Total POC firefighters/EMTs - 26 Fire 2026 2027 2028 2029 2030 Fire Chief 1 1 1 1 1 Assistant Fire Chief 1 1 1 1 1 Fire Marshall 1 1 1 1 1 Full-time Fire Captain 3 3 3 3 3 Full-time Firefighter 9 9 12* 12 12 TOTAL: 15 15 18 18 18 2026 – 2030 Personnel Plan / Page 10 POLICE The Prior Lake Police Department (PLPD) is unique in that it provides services to two communities - Prior Lake and the Shakopee Mdewakanton Sioux Community (SMSC). The recently completed workload study offered recommendations to maintain current service levels, including increasing the allocation of personnel for patrol to 22 officers (currently 17), seven sergeants (currently six), and administrative support. Recognizing the budget impact of adding several positions in one year, the PD proposes to increme ntally add these positions over the next few years which is detailed below. *2025, 2027 (2), 2029, and 2030: Patrol Officer (5 FTEs). The workload study found that staffing in the Patrol Division is not adequate to manage workload volumes and the appropriate geographic distribution of personnel. It is recommended that PLPD should adjust its deployment of personnel for primary response from 17 to 22 patrol officers. This number is considered the operational minimum and is the baseline for staffing, not the maximum. The study notes that the addition of four positions represents the full volume of calls for service currently being handled by PLPD sergeants. In addition, this increase takes into account the ‘non-operational’ (vacancies to ensure staffing at operational minimal levels) hours for officers who are in training, on leave, injured or otherwise unable to fulfill their duties. The study also recommends adding an additional officer to the investigations unit. Currently, PLPD has three general investigation detectives, and the city would benefit from the additional capacity. This would allow active cases to be diverted from patrol into investigations and increase the numbers of hours dedicated to each case per investigator. Using savings from reduced overtime by reassigning the Mystic Lake Casino beat officers to patrol, a new FTE could be added i n 2025 with a budget neutral impact. *2026: Sergeant (1 FTE). The workload study identified the addition of a seventh supervisor as the highest priority for PLPD. Although sergeants are expected to provide guidance and support to patrol staff, PLPD sergeants too often take on a primary response role. The workload study found that PLPD sergeants contribute over 2,000 hours annually toward primary/back-up response, which detracts from their responsibilities as supervisors. Supervisors are expected to perform administrative functions, manage training efforts, and develop patrol officers, including monitoring performance and addressing performance issues which is why they should not serve as primary responders for service calls. Per the study, “For the PLPD, it is evident that its patrol supervisors have been relegated to a de facto patrol role, all but eliminating their ability to perform the more complex and intended role they are assigned.” In addition, PLPD has difficulty maintaining daily staffing at the sergeant level because there is no redundancy when a sergeant is on leave or off work. *2026: Records Specialist (1 FTE). The workload on the records staff has increased markedly with the addition of several sworn officers since 2019; however no additional staff have been added to that workgroup to adjust to the workload. Additionally, increased data practic es requests, video redaction needs, and State mandated law changes have compounded the daily tasks and volume of work of the records staff. With an extensive backlog of criminal justice data needing to be addressed as well as falling behind on daily data needs, there is an urgent priority to bring the records group to a higher staffing level. This may impact another workload study recommendation regarding administrative functions across PLPD (see below). In addition, the Evidence Technician has significantly reduced the years long backlog of old evidence which means this position will have additional capacity. Therefore, this position will be re-evaluated to determine the best use of this resources, including expanding duties into investigations and records support. 2026 – 2030 Personnel Plan / Page 11 *TBD: Administrative Assistant (1 FTE). With a total headcount of 39.42 FTEs, the PLPD currently has no dedicated administrative personnel. All administrative functions fall under the Records Division which is understaffed. The workload study found that the Records Supervisor has a workload equivalent to 2 full-time employees, primarily due to administrative support work. In addition, command staff and investigators provide their own administrative support which takes them away from their primary duties. As such, the study recommends adding a full -time administrative assistant position to assist with workloads and to support department operations. An analysis of administrative duties currently being performed by the Records Division (e.g., from scheduling, answering phones, website updates, presentations, agenda reports) will help develop the job description and allow records staff, supervisors, and investigators to focus on their primary duties. Total FTEs in 2025 – 39.42 *One patrol officer position in 2026 is budget neutral due to scheduling adjustments and overtime savings. Police 2026 2027 2028 2029 2030 Police Chief 1 1 1 1 1 Commander 2 2 2 2 2 Sergeant 7* 7 7 7 7 Patrol Officer/Investigator 25** 27* 27 28* 29* Records Supervisor 1 1 1 1 1 Records Specialist 4.62* 4.62 4.62 TBD TBD Community Service Officer .8 .8 .8 .8 .8 Evidence Room Technician 1 1 1 1 1 Admin Support Staff - TBD TBD TBD TBD TOTAL: 42.42 44.42 44.42 45.42 46.42 2026 – 2030 Personnel Plan / Page 12 PUBLIC WORKS Several events occurred in late 2024 and 2025 that escalated the implementation of the Public Works Department’s prior personnel plan. As a result, Public Works does not foresee the need to hire additional staff for the next few years. 1. As part of the 2025 budget, a Public Works Supervisor (Utilities) was created and filled through a promotion. With millions of dollars’ worth of utility maintenance projects over the next several years (sewer lining, SCADA upgrade, water treatment facility filter beds, etc.), positioning a team member to lead the management and delivery of these projects is critical. 2. When the Public Works Operator (Streets) left the City, that position was reclassified into a Facility Maintenance Manager position, which was originally slated as a new position in 2028. However, with capital improvement projects for City Hall, the Police Department, and Maintenance Center planned, Public Works took the opportunity to add the position early. The position was filled in January 2025. 3. With the unexpected retirement of the part-time (.63 FTE) Recreation Programmer supporting Club Prior, the position was moved to full- time in late 2024 to expand the hours and offerings at Club Prior and to support community events and other recreation services. 4. In the fall of 2024, the current Public Works Director/City Engineer resigned, and the Assistant Public Works Director was promoted into that position. The Assistant position was reclassified into a Maintenance Superintendent position. Total FTEs in 2025 – 41 Public Works 2026 2027 2028 2029 2030 PW Director/City Engineer 1 1 1 1 1 Superintendent 1 1 1 1 1 Supervisor 3 3 3 3 3 Facility Maintenance Manager 1 1 1 1 1 Mechanics 3 3 3 3 3 Maintenance Worker/Operator 21 21 21 21 21 Facilities Maintenance Worker 1 1 1 1 1 GIS Coordinator 1 1 1 1 1 PW Specialist 1 1 1 1 1 Asst City Engineer 1 1 1 1 1 Engineering Tech 2 2 2 2 2 Project Engineer-Stormwater 1 1 1 1 1 Parks & Recreation Manager 1 1 1 1 1 Recreation Supervisor 1 1 1 1 1 Recreation Programmer 2 2 2 2 2 TOTAL: 41 41 41 41 41 2026 – 2030 Personnel Plan / Page 13 ATTACHMENT B: Org Chart