6 Financial Strategies, FinalCTrYOF
CHANHASSEIq
7700 Market Boulevard
PO Box 141
Chanhassen. MN 55317
AzlmlnlstraUon
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Couller Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
,,;',,',,,,;'.ci.chanhassen.mn.us
M]3V[ORA!',a)UM
Todd Gerhardt, City Manager
FROM:
DATE:
RE,:
Justin Miller, Assistant to the City Manager,,~,^/'d/,~,.
May 30, 2003
Key Financial Strategies - Final Report
Attached to this report is a final version of the Key Financial Strategies report that
Council, staff, and Ehlers, Inc. have been working on for the past year. A few
minor changes have been m~de since the last version, ~g mainly with the
numbering of activities in the Action Plan on pages 13-15 so that they correspond
with the recommendations on pages 9-12.
Jim Prosser from Elders will be present at the June 9t~ ~g for a final report.
If Council has no major objections, staff l'e~mmend8 approval of the Key
Financial Strat~es report and asks Council to direct staff to begin
implementation immediately.
The Clly of Chanhassen · A growing community with ci(~an ~ak~s, qua;;ty schools, a charming downto,".'n, thrMng businesses, winding trails, and beautiful parks. A grot place to live, v;ork, and play.
From:
Date:
Subject:
Jim Prosser & Mark Ruff, El'tiers & Associates
^plil 3, 2o03
Final KFS,~ Report
EHLERS
& ASSOCIATES INC
Please find attached the KFS strategy report summary. Suggestions for irr~. lementation of these
strategies include the following:
· The strate~ should be review and updamd prior to the annual budget process, preferably as
part of the City annual goal setting process.
· A special effort should be made to balance "input" (revenue) issues with "outcome"
(programs and services) issues.
ehanhassen, like many other con4)amble communities, is at a stage requiring si~ificant
reinvestment in its physical facilities while balancing the need to invest for growth.
Developing and carefully implementing a plan to stage this reinv~ is key to targeting
limited resoume~ (time and money) for priority s~rvices and investments.
Focus on an achievable number of financial strategies on an annual basis. This is likely to be
the greatest challenge facing your comm~ity. KFS is designed to be a continued
i .mpmvc~t process for financial planning as contrasted to a l~roduct to be completed within
a limil~l time frame. The most i .mportant role for Mayor and Cotmcil Me~ is to be
custodians of the KFS process.
On behalf of Rhlers & Associates we want to thank you and your staff for thek dedication, creativity
and hard work in preparing this strategic repom We especially want to thank Justin Miller who
provided solid support and coordination and Bruce DeJong who provided strong supp~ and insight
in the preparation of this plan. It was evident throughout this process that Chanhassen is well served
by your Management Team.
LEADERS IN PUBLIC FINANCE
Rosevtllo, MN 55113-11135
Inc.com
Phone: 651-697-8503 Fax: 651-697-8,5,55
Emall: Jln'~ehlers-
EHLERS
& ASSOCIATE8 INC
Ehlers & Associates
OVERVIRW
Ehlers & Associates was engaged by thc City of Chanhassen, Minnesota (thc "City") to assist in
the preparation of the City's Key Financial Strategies. Thc need to create a comprehensive
financial management plan was identified by the City Mayor, Council, Manager and Staff due to
growing demands for financial resouxcz~. This strategic financial plan is the result of four
workshops with the Council and many hours of staff consultation. One of the workshops
(November 7, 2002) focused on identifying potential financial needs of the City. The remalts
from that session have ~ incorporated into this plan document.
OBJ~~ FOR ~ FINAN~ PI,ANNI/qG PR~
A financial plan is a necessary element of a City strategy to remain competitive in today's
demanding environment. Other objectives of the City's Key Financial Strategies are:
Establishing a common understanding among the elected officials and staff
of the City's needs and financial capacity.
Developing a comprehensive view of financial resources and options.
Identifying City issues and opportunities.
Creating a framework in which elected officials and staff can make
immediate and long-term investment decisions.
Developing a consensus among the elected officials and staff on key actions
the City will take to remain competitive.
Meeting thc new standard presented in thc Governmental Accounting
Standards Board Regulation 34 including its capital planning provisions.
Through this workshop process we have examined the cmxent and future ability to meet
these objectives to answer the question "How do we get there?" The City's Key
Financial Strategies will provide a road map into thc future and a framework for future
decision-making.
City of ChanItassen - Key Financial Strategies
Eldet~' & Associates
The financial assessment conducted of the City was divided into seven areas:
1. Community goals/initiatives
2. Local tax base considerations
3. Financial Position
4. City owned infras~~
5. Competitiveness
6. Credit position
As part of the financial assessment, a number of findings were presented within the
workshops. These findings are outlined in more detail within this report A summary of
these findings is as follows:
1) COMMUNITY GOALS~~ - Establishing a strategic profile
including community vision (purpose), goals (means to achieve the purpose), and
strategies (directed at accomplishing goals), which are essential to the efficient
and effective use of scarte City resources.
A) Important Initiath~es -- City Officials have identified several initiatives as
part of this financial planning process. Key issues include:
· Maintaining city infrasmmmm. This includes:
o Pavement Management System
o Sewer and Water Infrash-ucmm
o Park Pavement Maintenance
o Vehicle and Major Equipment Replacement
o Water System lml~rovements
o Public Facility Maintenance
· Enhance and protect city environment. This includes:
o Update SWMP (Storm Water Management Plan)
o Watershed Im.rn~ovements
o NPDES Phase II compliance
o Lake Monitoring/Improvements
o 2007 Environmental Fund Solvency Issues
o Bluff Creek Improvements
· Managing growth. This includes:
o Future staf~g issues
o 2005 MUSA
o City Trails
o Comprehensive Plan Update
o Establishing an Affordable Housing Land Trust
o Expansion of Public Works Facility
o Improving City Services
City of Chanhassen - Key Financial Strategies Page 2
Elders & Associates
o Quality Assurance for Law Enforcement/Public Safety
o City Archives and E-City Hall.
Explore support for new City facilities. This includes, without
limitation:
o Cor~munity Center/Ice Arena
o City Commons Park
o Chanhassen School Campus
Implication: The City has identified a significant agenda for future needs.
Developing a mechanism to regularly prioritize needs, develop
implementation programs (including resource requirements) and evaluate
the City's capacity to implement the programs should be a high priority.
Financial strategies should also include direction regarding the nature of
activities to be undertaken for each issue including: · Assessing need for service or facility.
· Studying alternatives, methods and cost and funding sources for
implementation.
· Implementation.
B)
Facility Options - City Officials are looking at options for public facilities
including a water ue~ment system, Public Works facility expansion, a
Community Center, and land purchase for a potential school.
Implication: Involving the public with this process will be key to
progressing this issue to the implementation phase. Careful consideration
should be given to the funding options and impacts (including operating
costs). While there are some issues impacting the timing of these decisions,
it is essential that public understanding and support be developed.
C) Technology - Ever growing demands for staff services and the need for
City depamnents to work together require ongoing investments in
computers and technology.
Implication: Further enhancements to the City's information technology
systems may require financial support from the City's Gen~ Fund. There will
be more and better technology products available to cities. Residents,
customers and employees will likely create pressure to invest in improved and
new technology. This will require the City to develop a disciplined approach to
reviewing the requests and needs for technology investments. That approach
should address cost and benefits (not limited to financial), productivity,
training, support and potential obsolescence.
City of Chanhassen - Key Financial Strategies Page 3
Elders & Associates'
2) LOCAL TAXBASE CONSIDERATIONS - Structure, quality and size of a
community's tax base impact its ability to fund services and investments.
A) Development -- City land area is approximately 54% developed and has reached 65%
of projected population. How the community completes development will impact its
Implication: The City will add additional residents and businesses to its population
and, in addition, will face new and additional requests for future services as
demographics and resident interests change as well as the need to address reinvestment
in existing facilities. Unders~ding the dual impact of new service requests of existing
residents and the impact of additional new residents will be a key to future planning.
B)
Market Value - City market value of $1.79 billion has been increasing aa average
10% per year for the past 5 years. The City has a high per capita market value of
$8S,000.
Implication: The high per capita market value and strong commercial base provides
good oppommity for revenue diversification. The tax rate should be evaluated in tea'ms
of what rate creates the outcomes that the City seeks for itself. The tax rate should be
set in conjunction with both the budget and the yearly costs identified in the capital
plan.
c)
Tax Increment Distri~ - Changes in State ~ tax law have adversely impacted
the City's ability to cover debt service related to development. A plan has been
prepared to cover potential shortfalls.
Implication: The City should continue to implement the plan prepared to work out debt
service issues. This plan should be carefully monitored for the next two yearn.
D) Diverse tax base - The City has a diverse tax base with 69% residential and 28%
commercial/industrial. The balance includes a variety of open space and institutional
Implication: Tax base diversification is a positive trend for stability in City services
requirements and property tax production. Continued effort should be made to maintain
a ratio of residential to commercial/in--al base with a target range of 67% to 75%
residential and 25% to 33% commercial/industrial.
E) Economic Development Policy - The City has provided economic development
incentives in the form of tax increment financing.
Implication: Previously the City used economic development incentives to atlract
targeted development. This strategy is clearly responsible for the level of tax base
diversification that exists today. To encourage continued balanced community growth
the City will consider appropriate strategies.
City of Chanhassen - Key Financial Strategies Page 4
Elders & Associates
3) FINANCIAL POSITION - Availability of funds to meet current and furore needs, adequate
fund balances for cash flow purposes and to meet emergency needs requires planning and
discipline.
A) Effective past financial management practices has left the City with a moderate
undesignated, ~ed fund balance within the General Fund, Water and Sewer
Fund and Storm Sewer Fund.
Implication: The City's General Fund Balance remains adequate. Changes in State tax
stmcmm and potential capital projects costs indicate the need to continue to carefully
monitor the fund balance.
B) The City faces growing demand and cost to provide services with limited ability to
increase short-term tax base.
Implication: State levy limits will impact the City's ability to inerea~ operating
expenses without an offsetting in~ in non-property tax revenues.
C) The City has developed effective loss reduction strategies (acci~t review, safety
committee). Additional risk management efforts including review of risk retention
levels, deductibles, funding of loss reserves may be warranted.
Implication: Additional development of risk management policies will help reduce
exposure to financial risks.
4.) CITY INFRASTRUCTURE - Communities need to regularly invest and reinvest in their
infrastructure (roads, buildings, parks, etc.). Regular deferral of investm~t can lead to
fiscal stress and ~ommlllllty dislrlve~tmelltS.
A) The City has maintained a street recomtmction program since 2002.
Implication: Overall the streets are in accep~le condition, but continued annual
investment will be needeA. Progress on maintenance should be carefully monitored.
B) The City is reviewing Public Works facility needs. It is intended that facility neexts will
be addressed at the same time as water treatment facilities are addressed.
Implication: The City has not initiated a plan to review the need for minvestment in this
facility.
City of Chanhassen - Key Financial Strategies Page 5
Elderv & Associates
c)
Potential need for reinvestment in pubnc facilities infrasmactm~ needs may increase the
property tax above the normal inflationary increase. The City has major investmenm in
buildings, utility systems, streets, trails, lighting systems and related improvements.
Implication: Community involvement will be key to addressing need for major
investments. The City should undertake a public participation process to involve the
community in understanding and then selecting options. Preparing plans and schedules
for anticipated required maintenance and replacement will provide information need for
financial planning purposes.
D) The City has extensive vehicle replacement requirements for Public Works and Fire
equipment. The City does not currently have a schedule of equipment replacement that
forecasts these needs for the expected life of the equipment.
Implication: Equipment replacement is often deferred as part of budget balancing
efforts. In the long term this may increase maintenance costs, increase downtime of
equipment and staff and lead to a funding problem in furore years. Developing an
equipment replacement schedule and funding source will help remedy this problem and
provide a more accurate measure of services.
E) The City faces potential major expenditures in its Water Fund for infnuccmettrm
improvements in order to meet required Federal water quality standards and
distribution system needs.
Implication: Enterprise funds are generally expected to support system needs. The City
should continue to identify future major enterprise expenditures within the next five to
ten years. This will permit the development of a utility rate plan to facilitate the requireA
improvements. Water rates are currently subsidizing sewer operations.
COMPETITIVENF~S - Communities compete for people to live, work and do business.
Understanding and responding to the elements of competition is an important role for the
A) The City's overall C!~ tax rate remains competitive with other comparable communities
in the metro area. (52 out of 108 metro communities)
Implication: Given the competitive tax rate and the high level of services, the City
would be in position to increase tax rates when conditions permit. However, this
increase should come only upon completion of a comprehensive analysis of competing
demands and priorities with community involvement in setting and funding these
priorities.
B) The City offers a full complement of services to residents and businesses.
Implication: Services offered by the City appear to be consistent or superior to
surrounding communities.
City of Chanhassen - Key Financial Strategies Page 6
EMers & Associates
C) Chanhassen a~ to be well maintained with no typical signs of disinvestments or
deterioration.
Implication: Careful attention should be paid to monitoring the condition of public and
private property.
D) Chanhassen's open space and trail system appear to be equal or greater man many other
communities in the metropolitan arem A new state of art library is currently under
construction. The City does not have some amenities typical for comparable
communities including a community center and may face community interest in
developing this facility. There is not a funding source in place for maintenance of the
extensive trail system.
Implication: Planning and investments in these areas has provided a sound foundation
for creating a community with amenities that will attract and retain residents, visitors
and businesses. Careful attention should be paid to the operating costs of recreation and
cultural amenities. Community involvement in discussions regarding the cost to build
and maintain new facilities will be a key factor for future considerations.
6) CREDIT POSITION Maintaining a strong credit rating helps reduce the cost of borrowing
required to develop and maintain the community.
A) The City is rated "A" by Standard & Poor's Investors Service. This is an above average
rating reflecting the City's strong property value growth and maintenance of a strong
financial position while making progress in mitigating the impact of a tax increment
district negatively impacted by tax rate changes.
Implication: This strong credit rating has helped the City successfully issue debt at very
competitive interest rates in the commercial marketplace.
B) The City's debt burden is high at $4,0(g)+ per capita, but reflects community growth
needs and overlapping debt of other governmental units. These burden ratios have been
falling due to community growth and value in~. About 2/3 of this debt is supported
by tax increment, assessment and enterprise revenues. Eighty-three per cent (83%) of
the City's debt will be paid off in ten years.
Implication: The City has successfully implemented a plan to address tax increment
debt issues. Careful attention should be paid to "mapping" out future debt issues for the
next five to ten years. The aggressive debt repayment schedule will enable the City to
continue to invest as needexL
C) The City currently has a moderate undedgnated fund balance.
Implication: This strong fund reserve helps the City to maintain its current rating. The
City should be careful to maintain this strong fund balance.
City of Chanhasse~t - Key Financial Strategies Page 7
EMers dc Associates
ENTERPRISE- Operating enterprise funds as businesses is key to avoiding
transferring the burden of operations to general taxpayers. In addition some enterprise
operations can help reduce the cost of general government
A) The City has improved cost recovery for water and sewer services but rates are st/Il not
covering all operating costs. The City has not in~ rates since 1998. The City is in
the process of completing a rate study related to the evaluation of a water treatment
investment. The study will likely recommend the establishment of minimum ~es for
operating and capital costs.
Implication: Fluctuations in water demand due to weather has provided challenges in
establishing water and sewer rates. However, rates should be established to assure
recovery of operating costs and adjusted annually.
City of Chanhassen - Key Financial Strategies Page 8
~lders & Associates
RECOMMENDATIONS
Based on the findings and analysis conducted in the workshops, Ehlers developed a list of
recommendations for the City -- their Key Financial Strategies -- listed in the seven categories below.
1.0 COMMUNITY GOALS/INITIATWF~
1.1
GOAL SETHNG: '
Thc Mayor and City Council should continue annual goal setting session~, prior to
budget preparation. The goal setting session should prioritize needs. This
information should be used by staff to develop programs, service options and
resource requirements, for consideration within the budget process. The goals
should specifically address the major issue categories.
Financial strategies should be incorporated into the annual goal setting program.
1.2
FACILITY ~S:
The City should continue the deliberate and careful approach to addressing facility
needs for furore growth, reinvestment and quality of life services and capital
investments. The Mayor and City Council should consider authorizing a study to
address future facility needs.
1.3
COMMUNICATION PLAN:
A communications plan should be developed in order to inform and seek community
feedback on impommt financial issues including future needs and financial
constraints. The plan should also forecast the process that will be used to seek
community participation for si~ificant community investment decisions.
Conducting a community survey win help identify the types of services vital to
attract and retain residents. Consideration should be given to expanding the survey
to collect information regarding improving the City's competitive position,
economic development, quality of life, school funding inequity and possible
intergovernmental / tax sharing solutions.
Consideration should be given to continuing the use of the "Funding Public
Facilities Public Participation Process" model in City facilities planning.
1.4
TECHNOLOGY PLAN:
A technology plan has been prepared with projected needs for the next five-year
period. The plan should also include a basis for evaluating the reque, sm for
technology investments that address cost and benefits (not limited to financial),
productivity, training, support and potential obsolescence and funding source.
1.5
IMPI.F. MENTATION PLAN:
Annual budgets should be prepared with budget options of at least 10% of total
budget expenditures. Budget presentations should be supported with a balance of
input and resources and outcome materials.
City of Cluznhass~ - Key Financial Strategies
Page 9
Elders & Associates
2.0
2.1
2.2
3.0
3.1
3.2
3.3
3.4
3.5
3.6
4.0
4.1
4.2
LOCAL TAX BASE
Growth planning should address continued attention to balancing commercial and residential
development. Special attention should be paid to assessing housing types to reflect life
cycle, financial ranges and life style choices.
The use of public subsidies to assist with encouraging the type of development needed to
maintain community competitiveness and balanced tax base should be continued. The
public assistance policy should be reviewed to assure flexibility to meet broad based
FINANCIAL POLICIES:
The Mayor and City Council should consider a Fund Balance Policy for the Special Revenue
Funds, Debt Service Funds, Capital Project Funds, En~ Funds, and Internal Service
City staff should prepare an alternative revenue source report for the City Council. These
options should be reviewed annually as part of the Key Financial Strategies update.
The City should adjust all user fees and utility rates on aa annual basis to reflect changes in
the cost of services.
The City should review assessment practices to include pavement management cost recovery
through special assessments to benefiting ~ owners (i.e. increasing assessments to
property owners and including street maintenance such as crack sealing) and to ad_dress
in--ed cost of pavement management projects.
The City should establish a schedule for in~g developer fees that is determined
annually. The current method of tying fees to increases in cons~on cost index does not
accurately reflect the City's cost of services.
The City should use this report as part of its annual goal-setting framework.
CITY OWNED INFRASTRUCTURE / CAPITAL EQUIP~
CAPITAL EQUIPMENT:
The Manager and Finance Director should review the final list of items which were
recommended as part of the vehicle/equipment replacement program and develop a funding
program to provide a more level annual replacement contribution. The City could establish
an internally funded equipment rental program to level out annual replacement costs.
INFRASTRU~:
The City staff should enact each annual capital improvement program based on review of the
multi-year capital improvement needs.
The City staff should coordinate development of the capital improvement budget with the
City of Chanhassen - Key Financial Strategies Page 10
Elders & Associates
development of the operating budget. Furore operating costs associated with new capital
improvements will be projected and included in operating budget forecasts.
The City should prepare a non-annual recurring maintenance schedule for City facilities.
5.0 COMPETITIVENESS
5.1
PROPERTY TAXES:
The City's tax rate is currently significantly below the state limit. In managing property
taxes, the City will seek a balance between providing an appropriate level of service,
maintaining infrasmmture, and affordability for residents. Having the lowest ~ taxes
is not always the final measure of this balance.
Given these limits and demands on ~ taxes, the City should review and implement a
revenue enhancement study for additional revenue options including utility franchise fees,
utility bill preparation fees and similar alternatives. The information should be prepared to
identify options prior to their need.
Continued long range financial planning crenttes the opportu~ty for managi~'ng property taxes
and providing the greatest stability in tax rates. Staff should annually prepare three-year
projections of tax levies. Community involvement in the long range planning process will
allow build support for the development of resources to achieve goals the public has
supported.
The City should continue to meet and confer with overlapping local government units
(county, schools, etc.) to discuss operating and capital funding issues that will impact
residents overall taxes.
5.2
BUDGET:
The current City practice is to target only an inflationary increase in the following year's
operating budget. In order to provide direction to staff, the Mayor and City Council should
review and select the appropriate items from the Budget Option Impact Worksheets that
would be included in next year's budget. This budget should then be conslxucted by
balancing resoumes with current and future needs.
The Hnancial Strategies should be reviewed and updated annually as part of the City's
budget process.
Annual budgets should include budget option analysis for 5% to 10% of total projected
expenditures.
Budget presentations and discussions should be supported with a balance of input/resoumes
and outcome options.
5.3
Risk Management
The City has initiated development of a risk management program. Additional effort to
reduce risk exposure including review of retentions levels, deductible levels, funding of
reserves for retained risks should be undertaken.
City of Chanhassen - Key Financial Strategies Page 11
Elders & As.vt~'iates
6.0
6.1
6.2
6.3
6.4
CREDIT POSITION
The approval of Key Financial Strategies by the Mayor and City Council will help
document the future City plan to Standard & Poor's Investors Service.
The City should endeavor to keep the total maturity length of general obligation
bonds below 20 years and at least 50% of the principal shall be retired within ten
years. In all cases, the maturity shall be shorter than the life of the related assets.
The City should work to minimize the amount of debt supported by property taxes
and will seek maximum use of special assessments, utility revenues and other non-
tax sources to support debt.
City staff, working with the City's independent financial advisor, shall monitor
outstanding debt and advise the City Council on ways to reduce the debt burden
through refinancing at lower interest rates and the early retirement of bonds.
7.0
7.1
7.2
7.3
7.4
7.5
Annually, the Manager and Finance Director should review and recommend
necessary adjustments to water and sewer rates sufficient to recover cost of
operations and provide for capiud needs for consideration by the Mayor and City
Council.
City staff should annually review the cost of genend fund services provided to
enterprise activities including insurance, financial and accounting services,
management, legal and related expenses. These costs should be evaluated by the
City Council for inclusion in the rates for enterprise services.
City staff should prepare a utility rate policy that addresses the nexut for fees to
recover ~ng costs and provide for operating cash, reserves, non-annual
recurring maintenance, and debt service.
City staff should identify the costs to meet mandated water quality standards and
the impact on water ram.
City staff should continue to monitor storm water management program (SWMP)
to ensure compliance with state and fedend regulations.
City of Chanhassen - Key Financial Strategies Page 12
Elders & Associates
ACTION PLAN
This section describes the actions needed to implement the City's Key Financial Strate~es. Actions
fall into two categories: Tasks for immediate action, and tasks that reflect on-going financial
management actions. The following is a recommendation on the tasks that require allention over the
next five-year period. Implementation of these Key Financial Strategies requires annual review and
updating the Plan and revision of the schedule prior to initiating the budget ~s. Careful attention
should be paid to developing realistic time frames and work plans.
Projected Start Projected
Activity Date Level/S~ Completion Date
1.0 Community Coals/Initiatives
1.1 Goal setting Bi-annual 1/I N/A
1.11 Further define funding options and plan for 2003 2/S 2004
AffordAble Housing Land Trust
1.2 Facility needs study 2006 2/S 200?
1.21 City Commons Park 2003 adI 2005
1.22 Identify funding options for school land 2003 3lA 2004
1.23 Community Center / Ice Arena 2005 3lA 2007
1.3 Prepare financial strategies communication 2004 2005
plan
1.31 Develop customer service feedback systems 2004 2/S 2005
for key City services
1.32 Conduct community survey to assess 2005 IlS 2006
community knowledge of and support for
new initi_'a~tives, facilities services and fees.
1.4 Expand e-city hall services -phase 1 2003 1/I 2004
1.41 Develop digitized document archives 2003 3/I Ongoing
1.5 Annual CIP Annual 1/I Annual
1.51 Identify options for replacing 2007 2004 IlS 2005
F. nvironmental Fund
2.0 Local Tax Base
2.1 Prepare plan for 2005 MUSA expansion 2003 IlS 2004
including capital and operating needs to
2.11 Prepare plan to accommodate growth (in 2003 2/S Annual
addition to MUSA) including projected
revenues and expenses.
2.12 Update Comprehensive Plan 2007 2/S 2008
2.2 Update public subsidy policy 2004 adA 2004
City of Chtmhassen - Key Financial Strategies Page 13
' Projected Start Projected
Activit~ Date Level/Status Completion Date
3.0 Finandal Position
3.1 Establish/Update Budget Control and 2004 2dS 2004
Financial Control Policy
3.11 Update fund balance policies 2004 2dS 2005
3.12 Update debt management plan 2005 US 2006
3.13 Establish/U~te Investment Policy 2004 2dS 2004
3.2 Explore franchise fee in context of finan~ 2003 1/S 2004
needs
3.3 Establish/Update User Charge Policy 2004 2dA 2004
3.4 Review assessment practice to address Annual 1/S Annual
pavement management and consider
increasing assessed portions and interest rate.
3.41 Identify funding sources for Park Pavement 2004 liS 2005
Maintenance
4.0 Infrastrncture/Capital Equipment
4.2 Identify options for funding Pavement 2004 1/I 2005
Management System
4.21 Develop estimates for public facilities 2005 2dS 2006
maintenance
4.22 Prepare non-annual recurring maintenance 2004 IlS 2005
schedule
4.23 Prepare funding options for major equipment 2006 US 2007
sources
4.24 Construct trail additions Ongoing 1/I N/A
4.25 Expand Public Works Facility Coordinate with 2dA N/A
water ~t
$.0 Competi~'veness
5.1 Property tax review Annual lis 2005
5.11 Prepare three year budget forecasts including Annual 2dS Annual
revenue forecasts
5.12 P~are alternate revenue analysis 2004 lis 2005
5.13 Identify and fund future staffing requirement Annual l/S April 2004
to match Ilrowth
5.2 Identify a limited number (1-3) of selected Annual 2dS Annual
services for potential competitive pricing on
annual basis
5.21 Review budget option analysis as part of Annual 2dS Annual
budget process
City of Chanhassen - Key Financial Stratesies Page 14
Proj Prq
Activity Date Level/Status Completion Date
5.22 Quality assurance for law enforcement/public 2003 1/S 2004
safety
5.3 Establish/Update Risk Management Policy 2003 2/S 2004
6.0 Credit
~.1 Accept Key Financial Strate~es 200~ 2fl 200~
6.2 Adopt debt policies as outlined in Cre~t 2003 2/I 200~
section of report.
7.0 Enterprise
7.1 Adjust user fees on annual basis to reflect Annual lis Annual
changes in cost of services.
7.2 Review general fund cost for enterprise 2004 2/S 2004
services for rate consideration
7.3 Develop utility rate policy 2003 1/I 2004
7.4 Evaluate/initiate Water Treatment 2003 lis 2004
Improvements
7.41 Identify funding source for sewer and water 2003 1/I 2004
infrastructure repla~ment
7.5 Update Storm Water Management Plan Underway 1/I Ongoing
1. Watershed improvement impacts
2. Bluff Creek improvements
3. Lake Monitoring/Improvement
7.51 NPDES Phase II Compliance Underway I/A 2007
PRIORITY DEFINITIONS:
I~VEL 1 Critical to continued operati~ of city baseline services at present levels. This includes
restoration of services identified as baseline.
I.EVI:tl. 2 Provides oppommity for increased efficiency in baseline level of services. This inckO~ ability to
contim~ to serve existing level of services without staff ~.
LFNEL 3 Provides opportunity for expansion of services to meet existing demand as evidenced
by Council direction or staff analysis.
I~RVRI~ 4 Provides opportunity to increase services that improve quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Clmnhassen - Key Financial Strategies Page 15