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HomeMy WebLinkAbout08(A) - Accept Final Progress Report for 2023-2026 Strategic Plan Report ITEM: 8A CITY COUNCIL AGENDA REPORT MEETING DATE: May 12, 2026 PREPARED BY: Lori Olson, Assistant City Manager PRESENTED BY: Jason Wedel, City Manager AGENDA ITEM: Accept Final Progress Report for 2023-2026 Strategic Plan RECOMMENDED ACTION: Accept Final Progress Report for 2023-2026 Strategic Plan BACKGROUND: The purpose of this item is to formally accept the final progress report for the 2023-2026 Strategic Plan. This action concludes the final year of the current strategic plan and lays the groundwork for the next iteration of strategic planning in 2027. Over several months in 2022, the City of Prior Lake conducted a strategic planning process that resulted in the development of the 2023-2026 Strategic Plan. The plan identified the City’s strategic short-term priorities which helped City leaders prioritize budgets, work plans, and performance management. The plan was adopted by the City Council on 2/23/2023. The 2023-2026 Strategic Plan identified the following priority areas:  Financial Sustainability – a fiscally responsible community  Well Managed Growth – growth that meets community needs  Stable & Sustainable Infrastructure – systems that support reliable service delivery  Public Safety – a safe community  High Quality Parks & Trails – a community that values the natural environment Each strategic priority included a set of outcomes, targets, and strategic initiatives designed to help achieve the desired results. Progress reports to inform the community, track performance, and ensure accountability were presented to the City Council on 1/23/2024 and 2/4/2025. Now in the final year of the plan, the attached report provides an update on the City’s progress toward the plan’s targets and strategic initiatives. Overall, the city made significant advancement in meeting the plan’s desired outcomes. Of the plan’s 19 performance targets across all priority areas, all have either been met or are on track for completion. Accomplishments of note include:  City received AAA bonding for the first time in 2023 and every year since  Over 20,000 s.f. of new commercial added or in review for downtown Prior Lake  Formation of a full-time Fire Department, including the onboarding of 12 new firefighters/EMTs and build out of Fire Station 1  Completion of a comprehensive utility infrastructure needs analysis and maintenance strategy City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 8A Page | 2  Adoption of the Parks & Trails Master Plan by the City Council and referendum on funding held This agenda item serves as the final report for and closes out of the 2023-2026 Strategic Plan. With the goal of developing the City’s next five-year strategic plan, a fresh assessment of the City’s priorities and focus areas will begin in early-2027. FINANCIAL IMPACT: Report only. No budget impact. ALTERNATIVES: 1. Motion and second to accept the final progress report for the 2023-2026 Strategic Plan. 2. Motion and second to deny this item and direct staff on potential next steps. ATTACHMENTS: 1. 1_Strategic Plan Status Report_Final 2026 05/12/2026 - 1 City of Prior Lake STRATEGIC PLAN 2023-2026 FINANCIAL SUSTAINABILITY – a financially responsible community Desired Outcome Performance Target & Strategic Initiatives Status Financial stability in all funds Improve bond rating to AAA by 2027 • Develop strategy to increase bond rating Meet fund balance targets by 12/2026 • Update Comprehensive Financial Management Plan COMPLETE X City received AAA for the first time in 2023 and again in 2024 and 2025. As a result of the AAA rating, the City received more favorable interest rates for the 2024 Mill and Overlay projects, 2024 Stormwater improvement projects, and the 2025 Wilds Parkway and Martindale/Henning/Hickory reclamation projects, which reduces the City’s long-term debt service costs. COMPLETE X 10-year city financial plan presented to Council annually with fund balance targets met. Unaudited year-end financials indicate that fund balance targets were met for 2025. Long-range planning projections indicate the fund balance targets will be met for 2026 as well. Annual budget and 5-year CIP approved based on 10-year financial plan. Will reassess the CFMP as part of the 2027-2031 strategic planning process. Adequate resources to fund Capital Improvement Program (CIP) Adequate funding to meet Overall Condition Index (OCI) target • Develop infrastructure funding scenarios • Establish financial plan that reflects infrastructure needs ON TRACK 10-year city financial plan presented to Council annually. Annual budget and 5-year CIP approved based on 10-year financial plan. City financial planning reflects infrastructure needs. End of 2025 met target for collector roads and is nearing target for total OCI. Financial polices guide decision making Budget objectives met annually COMPLETE City financial policies have guided Council and staff decision making and have met budget objectives annually. FINAL REPORT Date: May 12, 2026 05/12/2026 - 2 WELL MANAGED GROWTH – growth that meets community needs Desired Outcome Target & Strategic Initiatives Status Downtown Vitality 20,000 SF of new downtown commercial by 2026 • Identify strategic property acquisition downtown 80+ new residential units by 2027 COMPLETE The City has gained 12,989 SF of new commercial space downtown in the last two years and is currently reviewing a ±10,320 SF development application. Combined these projects bring over 20,000 SPF of new commercial to downtown. Specific projects include: o Chula’s Mexican-Latin Restaurant project redevelopment of T-Shirts and More property into new 9,500 SF restaurant and commercial building. Net gain of 6,672 SF. o Cora Apartment restaurant space (main level and rooftop) - 2,905 SF o PLate on Main expansion - 650 SF. o Dingman Auto alteration to YT’s Garage Bar - 2,762 SF o Prior Lake Revival II Application (new construction) - ±10,320 SF X The EDA acquired a property at 4556 Colorado Street to facilitate a future downtown redevelopment project. COMPLETE 105 new residential units are currently being constructed as part of the Cora Apartment project, which broke ground in January 2026. Fiscally responsible residential growth $0 in development costs transferred to existing taxpayers • Lobby to ensure development costs are not transferred to taxpayers COMPLETE No development costs have been transferred to existing taxpayers since strategic plan approval. Residential developers are paying for required street oversizing within their developments. X Lobbying efforts have continued since approval of the strategic plan and there have been no substantial law 05/12/2026 - 3 changes to date that pass development related expenses to existing taxpayers. City Manager and Mayor provided testimony on proposed bills several times each year at various State Legislature committee hearings. Will continue to oppose new bills as they are introduced each year. Adequate supply of commercial/industrial (C/I) land No net loss of C/I guided land 2023-2026 • Develop strategy for orderly annexation agreement (OAA) renewal • Develop strategy for utility extension in OAA • Develop education strategy for C/I properties COMPLETE No net loss of C/I guided land during strategic plan period. X New OAA with Spring Lake Township executed in 2024. X In 2025, the City Council approved contracts with WSB and Bolton & Menk to complete an AUAR and infrastructure study within the annexation area and undeveloped growth areas of the community. The studies, which provide a comprehensive environmental review and analyze infrastructure needs, were completed and presented to Council on April 28, 2026. X City Council, EDA, Planning Commission, and city staff continue value retaining limited available C/I property. City Council, Planning Commission and EDA have met to discuss the importance of retaining and expanding the vacant C/I lot inventory. STABLE & SUSTAINABLE INFRASTRUCTURE – systems that support reliable service delivery Desired Outcome Target & Strategic Initiatives Status Quality street conditions Maintain average OCI 70 Achieve minimum OCI 50 on collector streets by 2033 ON TRACK ON TRACK Complete understanding of infrastructure Comprehensive needs analysis completed by 2024 COMPLETE 05/12/2026 - 4 • Complete assessment of utility maintenance needs including cost and risk implications • Update inspection and maintenance strategy for infrastructure X Project completed Q4 2024. X OpenGov software updated appropriately. Adequate Public Works facility Maintenance Center expansion completed by 2033 • Formalize public property maintenance plan • Implement plan for Maintenance Center upgrade ON TRACK Needs analysis and concept for Maintenance Center expansion will be updated in 2027 to reflect needs with the added annexation area for city expansion. Project schedule has been started and planning strategies mapped out. Budget will be refined. Staffing needs related to building maintenance identified in Personnel Plan. PUBLIC SAFETY - a safe community Desired Outcome Target & Strategic Initiatives Status Full-time Fire Department established Full-time Fire Department fully operational by 7/1/2023 • Develop recruitment strategy for full-time firefighters • Update operating guidelines/policies and procedures • Complete Fire Station 1 buildout COMPLETE X X X Safe and stable buildings Life safety pre-plan fully implemented by 12/31/2025 • Initiate comprehensive inventory of buildings • Create inspection program • Develop pre-plans for commercial buildings COMPLETE X Inventory completed Q4 2024. X Assistant Fire Chief/Fire Marshal hired January 2025, and new inspection/pre-plan software implemented in June 2025. Program fully operational, and 76 inspections completed. X 500 pre-plans completed and entered into software system as of April 2026. Includes commercial and residential buildings. 05/12/2026 - 5 A well-trained Police Department 100% of Police staff meet revised training goals by 7/2025 • Develop comprehensive training program ON TRACK Staffing analysis by consultant completed in 2025. PLPD added four new FTEs during strategic plan period. All positions filled in 2026 for first time in many years, and seventh sergeant identified. All staff consistently above state mandated training hours and curriculum areas. Current training framework has been altered to increase retention and recall of materials. With full staffing finally in place and future needs identified by the study, talent mapping can begin in earnest to align officer training with PD business needs. At the same time, Individual officer ’s areas of interest and opportunities for professional growth will be identified to retain and grow current employees. The talent mapping plan and priorities will be conducted in late 2026 and early 2027. HIGH QUALITY PARKS & TRAILS - a community that values the natural environment Desired Outcome Target & Strategic Initiatives Status Clear direction of future of parks and trails Adoption of Parks and Trails Master Plan by 12/2023 Adoption of Lakefront Park Master plan by 1/2023 • Develop Council materials for adoption of plans COMPLETE Adopted in 2024. COMPLETE X Adopted in 2024. Community support for parks and trails funding Identify funding scenarios for parks & trails by 2024 • Develop parks and trails funding strategy • Create funding plan COMPLETE X Funding strategy finalized and included as referendum in 2025 election. Referendum failed to pass. X Post-referendum, focus has shifted to alternate strategies for funding park improvements, including prioritizing projects, generating additional revenue, phased increases to the tax levy, and repurposing underutilized parks. Will be included in 2027-2031 strategic planning. 05/12/2026 - 6 Achieve community consensus on parks/trails funding by 2024 • Develop community engagement plan COMPLETE X Consultant hired in 2025 to assist with development of communication strategy. Engagement occurred throughout 2025, but the community did not support the level of funding proposed in the referendum plan. Staff re- evaluating park priority projects and funding moving forward.