B Key Financial Strategies C1TYOF
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspectloes
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1161)
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax:. 952.227.1110
Ft~re~on Crater
2310 Coulter Boulevard
Phone: 952.2~7.1400
Fax: 952.227.1404
Plennlng &
Natural Resources
Phone: 952.227.1130
Fax:. 952.227.1110
Public Works
1591 Park Road
Phone: 952.2.27.1300
Fax: 952.227.1310
Senior Center
P~ne: 9522.27.1125
Fax: 9522.27.1110
Web Site
v#^,/.cJ.c~anhassen.rnn.us
~ORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
DATE:
RE,:
Justin Miller, Assistant to the City Managerx, j'~..~.,
April 22, 2003
Key Financial Strategies - Final Work Session
Attached to this report is the Key Financial Strategies report with the suggested
changes that were discussed at the April 14th Council work session, ff no further
changes are needed, this will be the document we refer to as our Key F'mancial
Swat~gies.
Please review the attached documents before Monday's meeting so that final
changes can be made. If Council is satisfied with the outcome of Monday's work
session, a final report will be compiled and submitted to the Council shortly.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtovm, lfldvino businesses, winding trails, and beautiful parks. A O~ place to live, work, and play.
I.U
From:
Date:
Subject:
Todd Gelhlm:lt, City of Chanhassen
Jim Prosser & Mark Ruff, Ehlers & Associates
Apri 3, 2003
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 strategies should be review and updated prior to the annum budget proc~s, preferably as
part of thc City annual goal setting process.
· A special effort should be rrmde to balance "input" (revenue) issues with "outcome"
(program~ and services) issues.
Chanhassen, like many other comparable communifi~, is at a stage requiring significant
reinvestment in its physical facilities while balancing the need to invest for growth.
Developing and carefully implc~ a plan to stage this reinv~ is key to targeting
limited resoutc~ (time and money) for priority services and investnmnts.
Focus on an achievable n~ of finan~ strategies on an annual basis. This is likely to be
the greatest challenge facing your commanit~. KFS is designed to be a continued
i .mprovement process for financial planning as contrasted to a product to be completed within
a limited time frame. The most i .m!x~ant role for Mayor and Council Members is to be
custodians of the KFS process.
On behalf of Ehl~ & Associates we want to thank you and your staff for their dedication, cre~vity
and hard work in preparing thi~ strategic reporL We especially want to thank Justin Miller who
provided solid support and coordination and Brace DeJc~g who provided strong smppo~ and insight
in the preparation of this plan. It was evident throughout thi~ process that Chanhassen is well served
by your Management Team.
LEADERS IN PUBLIC FINANCE
3060 Centre Polnte Drive
Rosevllle, MN 55113-1105
Ino.com
Pt~no: 651-.697-.8,508 F.c~: 651-697-.8555
Ern~ll: J!m~hlers-
EHLERS
& ASSOCIATES INC
Ehlers & Associates
DRAFT
OVERVIEW
Elders & Associates was engaged by the City of Chanhasscn, Minnesota (the "City") to assist in
thc preparation of thc City's Key Financial Strategies. Thc need to create a comprehensive
financial management plan was identified by thc City Mayor, Council, Manager and Staff due to
growing demands for financial resoume~. 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 thc City. Thc results
from that session have been incorporated into this plan document.
OBJECTIVI~ FOR ~ FINANCIAL PI~xI~qlNG PROCE~
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 F'mancial Strategies are:
Establishing a common understanding among thc elected officials and staff
of the City's needs and financial capacity.
Developing a comprehensive view of financial resoumes and options.
Identifying City issues and oppommities.
Cre~ting 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 the new standard presented in thc Governmental Accounting
Standards Board Regulation 34 including its capital planning provisions.
Through this workshop process we have examined thc current and futttrc ability to meet
these objectives to answer thc question '/-Iow do we get there?" The City's Key
Financial Strategies will provide a road map into thc future and a framework for fum_re
decision-making.
City of Chanhassen - Key Financial Strategies 030403
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 infrastructure
5. Competitiveness
6. Credit position
7. Enterprise funds
As part of the financial assessment, a number of findings' were presented within the
workshops. These findings are outlined in more detail within this repolt A summary of
these findings is as follows:
1) COMMUNITY GOALS~TIVF~ - 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 effident
and effective use of scarce City resources.
A) Important Initiatives -- City Officials have identified several initiatives as
part of this financial planning process. Key issues include:
· Maintaining city infrastructure. This includes:
o Pavement Management System
o Sewer and Water TnfTas~
o Park Pavement Maintenance
o Vehicle and Major Equipment Replacement
o Water System Improvements
o Public Facility Maintenance
· Enhance and protect city environmenL This includes:
o Update SWMP (Storm Water Management Plan)
o Watershed Improvements
o NPDES Phase H compliance
o Lake Monitoring/Improvements
o 2007 Environmental Pund Solvency Issues
o Bluff Creek Improvements
· Mana~g growth. This includes:
o Puture staffing issues
o 2005 MUSA
o City Trails
o Comprehensive Plan Update
o Establishing an Affordable Housing Laud Trust
o Expansion of Public Works Facility
o Improving City Services
City of Chanhassen - Key Financial Strategies 030403 Page 2
Eiders & Associates DRAFT
o Quality Assurance for Law Enforcement/Public Safety
o City Archives and E-City Hall.
Explore support for new City facilities. This includes:
o Community Center/Ice Arena
o City Commons Park
o Chanhassen High 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 evalu_ste
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 soumes for
implementation.
· Implementation.
B)
Facility Options - City Officials are looking at options for public facilities
including a water tmalJnent system, Public Works facihty expansion, a
Community Center, and land purchase for a potential high 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.
Technology -- Ever growing demands for staff services and the need for
City Departments 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 General 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 obsole,~ence.
City of Chanhassen - Key Financial Strategies 030403 Page 3
DRAFT
2) LOCAL TAXBASE CONSIDERATIONS - Struclxn~ quality and size of a
community's tax base impact its ability to fund services and investments.
A) Development - City land area is approximstely 54% developed and has reached
65% of projected population. How the community completes development will
impact its furore.
Implication: The City will add additional residents and businesses to its population
and, in addition, will face new and additional requests for furore services as
demographics and resident interests change as well as the need to addresa
reinvestment in existing facilities. Understanding 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 in~g an average
10% per year for the past 5 years. The City has a high per capita market value of
$88,000.
Implication: The high per capita market value and strong commercial base provides
good opportunity for revenue diversification. The tax rate should be evaluated in
terms 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 Districts - Changes in State property 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 years.
D) Diverse tax base - The City has a diverse tax base with 69% residential and 28%
commercial/industrial. The balance includes a variety of ~ space and
institutional uses.
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/industrial 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.
Implication: Previously the City used economic development incentives to attract
targeted development. This strategy is clearly responsible for the level of tax base
City of Chanhassen - Key Financial Strategies Page 4
hter Associates DRAFT
diversification that exists today. To encourage continued balanced community
growth the City will consider appropriate strategies.
3) FINANCIAL POSITION - Availability of funds to meet current and future needs, adequate
fund balances for cash flow purposes and to meet emergency needs requires planning and
discipline.
A) Effective past financial management prances has left the City with a moderate
undesignated, untested fund balance within the General Fund, Water and Sewer
Fund and Storm Sewer Fund.
Implication: The City's General Fund Balance remaim adequate. Changes in State
tax structure 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 ~ increase operating
expenses without an offsetting increase in non-property tax revenues.
C) The City has developed effective loss wAucfion strategies (accident 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 INFRASTRU~ - Communities need to regularly invest and reinvest in their
infrastruciatre (roads, buildings, parks, etc.). Regular deferral of investment can lead to
fiscal stress and community disinvestments.
A) The City has maintained a street reconstruction program since 2002.
Implication: Overall the streets are in acceptable condition, but continued annual
investment will be needed. Progress on maintenance should be carefully monitored.
B) The City is reviewing Public Works facility needs. It is intended that facility needs
will be addressed at the same time as water treatment facilities are addresse~
Implication: The City has not initiated a plan to review the need for reinvestment in
this facility.
City of Chanhassen- Key Financial Strategies Page 5
C) Potential need for reinvestment in public facilities infrasmmture needs may increase
the property tax above the normal inflationary increase. The City has major
investments in buildings, utility system~, streets, trails, lighting systema and related
improvements.
Implication: Community involvement will be key to addressing need for major
investments. The City should undertake a public participation process (see attache. )
to involve the community in understanding and then selecting options. Preparing
plans and schedules for anticipated required maintenance and repla~ment will
provide information need for financial planning purposes.
D) The City has extensive vehicle replacement requirements for Public Works and Fire
equipmenL 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 ia often deferred aa part of budget balancing
efforts. In the long term this may increase maintenance costs, increased downtime of
equipment and staff and lead to a funding problem in future years. Developing an
equipment replacement schedule and funding source will help remedy this problem
and provide a more accurate measure of services.
D)The City faces potential major expenditures in its Water Fund for infras~
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 required improvements. Water rates are currently subsidizing sewer operations.
COMPETITIVENF.._qs - 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 City tax rate remains competitive with other comparable
communities in the metro area. (52~a out of 108 metro communities)
Implication: Cfiven the competitive tax rate and the high level of services, the City
would be in position to in~ tax rates when conditions permit. However, this
increase should come only upon completion of a comprehensive analysis of
competing demands and priorities with commtmity 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
· Associates DRAFT
C) Chanhassen appears 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 than many
other communities in the metropolitan area. 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 wffi be a key factor for futare
considerations.
CREDIT POSITION Maintaining a strong credit rating helps reduce the cost of
borrowing required to develop and matnt~n 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 sucme~fully issue debt at
very competitive interest rates in the commercial marketplace.
B) The City's debt burden is high at $4,000~ 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 stmcessfully implemented a plan to address tax increment
debt issues. Careful attention should be paid to "mapping" out fuRtre debt issues for
the next five to ten years. The aggressive debt repayment schedule will enable the
City to continue to invest as needed.
C) The City currently has a moderate tmdesignated fund balance.
Implication: This strong fund reserve helps the City to maint~ its current rating.
The City should be careful to maintain this strong fund balance.
City of Chanhassen - Key Financial Strategies Page 7
Elders & Associates DRAFT
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 still
not covering all operating costs. The City has not increased 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 reserves 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
Ehlerx & Associates
DRAFT
RECOMMENDATIONS
Based on the findings and analysis conducted in the workshops, Elders developed a list of
recommendations for thc City - their Key Financial Strategies -- listed in thc seven categories
below.
1.0 COlVIlVIUNITY GOAI,S~TIVF3
1.1
GOAL SETFING:
The Mayor and City Council should continue annual goal setting sessions, 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
neexis for future 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 important financial issues including fi.m. tm needs and finandal
constraints. The plan should also forecast the process that will be used to seek
community participation for significant community investment decisions.
Conducting a community survey will 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.
1.4
1.5
Consideration should be given to continuing the use of the "Funding Public
Facilities Public Participation Process" model in City facilities planning (see
attached).
TECHNOLOGY PLAN:
A technology plan has been prepared with projectexi needs for the next five-year
period. The plan should also include a basis for evalusting the requests for
technology investments that address cost and benefits (not limited to financial),
productivity, training, support and potential obsole..w, ence and funding source
IMPI J~MF~NTATION 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 Chanhassen - Key Financial Strategie~ Pag~ 9
Elder.~ & Associates
2.0
2.1
2.2
3.0
DRAFT
Loc~ Tax Base
Growth planning should address continued attention to balancing commercial and
residential development. Special atmntion 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 community needs.
mANCIAL PosmoN
3.1
FINANCIAL POLICIE3:
The Mayor and City Council should consider a Fund Balance Policy for the Special
Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and
Internal Service Funds.
3.2
3.3
3.4
3.5
3.6
4.0
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 an annual basis to reflect
changes in the coat of services.
The City should review assessment practices to include pavement management cost
recovery through special assessments to benefiting property owners (i.e. increasing
assessments to lXOpe~ owners and including street maintenance such as crack
sealing) and to address increased cost of pavement management projects.
The City should establish a schedule for increasing developer fees that is determined
annually. The current method of tying fees to increases in construction 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 EQUIPME~
4.1
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.
4.2
INFRAS~U~:
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 development of the ~g budget. Future 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.
City of Chanhassen - Key Financial Strategies Page 10
Eiders & Associates
5.0 COMPETITIVENESS
DRAFT
5.1
PROPERTY TAXES:
The City's tax rate is currently significantly below the state limit. In mana~ng
property taxes, the City will seek a balance between providing an appropriate level
of service, maintaining infras~, and affordability for residents. Having the
lowest property taxes is not always the final measure of this balance.
Given these limits and demands on property 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 creates the oppommity for manaong
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
resoumes to achieve goals the public has suppol'md.
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 aa 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 consmmted by balancing resoumes with currant and furore needs.
The Financial Strategies should be reviewed and upd_~t_t~cl 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/reso~ and outcome options.
5.3
6.0
6.1
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.
CREDIT I'osmoN
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.
City of Chanhassen - Key Financial Strategies Page 11
Eiders & Associates DRAFT
6.2
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.
6.3
The City should work to minimize the amount of debt supported by ~ taxes
and will seek maximum use of special assessments, utility revenues and other non-
tax sources to support debt.
6.4
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
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 capital needs for consideration by the Mayor and City
Council.
City staff should annually review the cost of general 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 need for fees to
recover operating 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 rates.
City of Chanhassen - Key Financial Strategies Page 12
Ehlers & Associates
DRAFT
ACTION PLAN
This section descri~ the actions needed to implement the City's Key Financial Strategies.
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
attention 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
process. Careful attention should be paid to developing realistic time frames and work plans.
ProJected Start ProJected
Activity Date Level/Status Completion Date
1.0 Community Goalsaniti~ves
1.1 Goal setting Bi-annual 1/I N/A
1.2 Facility needs study 2006 2/S 2007
1.3 Conduct community survey to assess 2005 1/S 2006
community knowledge of and support for
new initiatives, facilities services and fees.
1.4 Prepare financial strategies communication 2004 2005
plan
1.5 Annual CH> Annual lfl Annual
1.6 Expand e-city hall services -phase 1 2003 1/I 2004
1.7 City Commons Park 2003 4/I 2005
1.8 Develop funding options and plan for 2003 2/S 2004
Affordable Housinl~ Land Trust
1.9 Identify options for replacing 2007 2004 1/S 2005
Environmental Fund
2.0 Local Tax Base
2.1 Prepare plan for 2005 MUSA expansion 2003 1/S 2004
including capital and operating needs to
accommodate li~rowth.
2.2 Prepare plan to accommodate growth (in 2003 2./S Annual
addition to MUSA) including projected
revenues and expenses.
2.3 Update Comprehensive Plan 2007 2,/S 2008
2.4 Identify and fund future staffing requirement Annual 1/S April 2004
to match growth
2.5 Update public subsidy policy 2004 4/A 2004
3.0 Financial Position
3.1 Establish/Update User Charge Policy 2004 2/A 2004
3.2 Explore franchise fee in context of financing 2003 1/S 2004
needs
3.3 Update debt management plan 2005 1/S 2006
City of Chanhassen- Key Financial Strategies Page 13
Projected Start Projected
Activity Date Level/Status Completion Date
3.4 Establish/Update Investment Policy 2004 2./S 2004
3.5 Establish/Update Risk Management Policy 2003 2/S 2004
3.6 Establish/Update Budget Control and 2004 2./S 2004
Financial Control Policy
3.7 Update fund balance policies. 2004 2/S 2005
4.0 Infrastructure/Capittd Equipment
4.1 Identify options for funding Pavement 2004 lfI 2005
Management System
4.2 Revise assessment practice to address Annual I/S Annual
pavement management and consider
increasing assessed portions and interest rote.
4.3 Prepare non-annual recurring maintenance 2004 1/S 2005
schedule
4.4 Prepare funding options for major equipment 2006 1/S 2007
4.5 Identify funding soumes for Park Pavement 2004 1/S 2005
Maintenance
4.6 Construct trail additions Ongoing UI N/A
4.7 Expand Public Works Facility Coordinate with 2/A N/A
water treatment
4.8 Develop digitized document archives 2003 3/I Ongoing
4.9 Identify funding options for High School land 2003 3/A 2004
4.10 Develop estimates for public facilities 2005 2/S 2006
maintenance
5.0 Competitiveness
5.1 Property tax need review Annual 1/S 2005
5.2 Review budget option analysis as part of Annual 2/S Annual
budget process
5.3 Prepare three year budget forecasts including Annual 2/S Annual
revenue forecasts
5.4 Identify a limited number (1-3) of selected Annual 2/S Annual
services for potential competitive pricing on
annual basis
5.5 Prepare alternate revenue analysis 2004 1/S 2005
5.6 Develop customer service feedback systems 2004 2/S 2005
for key City services
5.7 Community Center ! Ice Arena 2005 3/A 2007
5.8 Quality assurance for law enforcement/public 2003 1/S 2004
safety
City of Chanhassen - Key Finatwial Strategies Page 14
Activity Date Level/Status Completion Date
6.0 Credit
6.1 Accept Key Financial Strategies 2003 2/I 2003
6.2 Adopt debt policies as outlined in Credit 2003 2/I 2003
section of report.
6.3 Establish/Update Fund Balance Policy 2004 2/S 2004
7.0 Enterprise
7.1 Update Storm Water Management Plan Underway 1/I Ongoing
1. Watershed improvement impacts
2. Bluff Creek improvements
3. Lake Monitoring~_mprovement
7.2 Evaluate/initiate Water Treatment 2003 1/S 2004
Improvements
7.3 Identify funding source for sewer and water 2003 1/I 2004
infrasu'ucmre replacement
7.4 NPDES Plan II compliance Underway 1lA 2007
7.5 Review general fund cost for enterprise 2004 2/S 2004
services for rate consideration
7.6 Adjust user fees on annual basis to reflect Annual US Annual
chan~ in cost of services.
7.7 Develop utility rote policy 2003 1/I 2004
PRIORITY DEFINITIONS:
LP.V~. 1 Critical to continued operation of city baseline servi~ at present levels. This includes
restoration of services identified as baseline.
I.~VEL 2 Provides opportunity for ~ efficiency in baseline level of sexvices. This includes ability to
continue to serve existing level of sexvices without staff ~.
I.F.V'FJ J 3 Provides oppommity for expansion of services to meet existing demand as evidenced
by Council direction or staff analysis.
I.F~VFJ J 4 Provides opportunity to increase services that improve quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Chanhassen- Key Financial Strategies Page 15
.' EHLERS
' .
.'& A$~'OCIATE$
Funding Commun FactiOn"
: .. - . '. ~ ': . .. . . '. - .
Publ Participation.PrO. V.'esS' ..
·
Thc 'traditional approach for funding community facilitieS h~s ~ Ui~O~ ~ process that-
prepares options, cost and financing options. The plan'is'earefully prepa_n~ ~y staff,
elected officials and sometimes representativeS' from thc-genial'pub.tic.' This plan is then
presented to thc public for '~buy-in". This buy-in is generally n~ regardless-of thc
type of funding. A number of communities have-found that:including thc' public earlier in
this planning process provides a bett~ final result and increases community support for .
the project. Another key distinction between this.process-and thc traditional-approach.is
that this process in¥olves elected officials as policy leaders throhghout thc pgocess.
Traditional approaches focus on elected official in¥o]vc~cnt~.thc ~cginning-~and end
stages. Thc basic clements of ~ process includes thc following steps:-' -. '
, ..
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·
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Communicate the Problem ..... · Iden~. the implications of not addressing or sol.vin'g the ~lem.
· If possible forecast thc problem in advande.of-~~g:tO-address, problem.
· Explain impact of not solvin~ probleiii as outcOi~'~ts.a~d impact on
· Develop chronology of communications on important issues.
· Develop rn~thods to assess community understanding of problem and impa~
Of problem on community.
· Develop communications plan to support effort.
Communicate the Process
· Develop a process'appropria~, to problem (i.e. task force, staff report,
commission study, etc.). ~
· Communicat~ process including specific oplx~tunities for broad~ public'
involvement
· E~tabUsh clear e..x~ons regarding commtmity involvement.
· · Solicit suggeagdons for changes in the proccsa.
· Peexiback community response to thc facility problem.
· Request options to I~ cvaluatccL
· Review and refine problem staternenL'
· Maintain chronology.
Communicate the Options
· Communicate options generated from process, including f~n~ building
location, building cost, etc.
· Develop clear evaluation crite~a for option including advantages and .
· Request feedback on additional options.
Request fe&tb~k on evaluation.
~ problem statement.andprocoss.
.*. Maintain chronology...,. .-~.. ,-.~ - ....
· . · . - . . ~-~ . ~. . ~ .
,COmmunicate the Se~'~ed 0~~
.
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· . Comm nic
· R~. d 'specifi.' cally to. su~ ~ons and evaluation criteria.
· Communi. 'cam.: .basis f~ selection_ .. : .........
· Pmvid~ balan~ evaluation in~ ~~g.eSp~ o~. '.on+.-.... :...- -
, . - . ,.. -. . ,.:. " . .- . :..'~-.. ~..
Maintain chro I gy '
- .
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-.. -o -ldentify'uextmps forimplemeutati~n.:.,:.:-:'- - ~. - ..- ~.: -..,- · . ' .. ~ :.:..
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typically. ...................... ....,. , ........ .,: ..
· · . ~, -' . . · -~ ~ . . - . : .& .... - , . · - .' ,.....'' .
:commumty feedback ~s needed. It m-wtal t~~ yub.~ - .pm~,..~ ' .'
· . ... _ . ..
to t!ae next step m the{macess. :. For ex~:tt;e~. Imb!ic is not:~g ttmt~ is-~-.-
need for the facility under study additional efforts should be'undertaken t6'communicate
the need before proceeding to the options stage. Elected offtci. "~..p!ay
process. Their..assesm~,...nt of. comm.
· . encourage t r0. u . sea. comm... umty an .the: ocess..in
· ,.':'-r,' -~ .... . "~7i.- :- ,' :'~ -
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