B Key Financial Strategies-FinaCITYOF
CHANHASSEIq
7700 Market Boulevard
PO Box 147
Chan~sen. MN 55317
Admlnl~b'atlon
Phone: 952.227.1100
Fax: 952.227.1110
Building Impectlons
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952227.1120
Fax:. 952227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Wo~
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
v,;,,~;,.ci.chanhassen.mn.us
TO:
Todd Gerhardt, City Manager
FROM:
DATE:
RE:
Justin Miller, Assistant to the City Manager.%?t~..
April 4, 2003
Key Financial Strategies - Final Work Session
Mark Ruff and Jim Prosser from Ehlers and Associates will be present at
Monday's Council Work Session to go over the final draft of our Key Financial
Strategies process. Attached to this report are three documents:
· DRAFT- Final Key Financial Slxamgies Report
· Funding Community Facilities Public Participation Process
· Evaluation Form
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 ,':iih cl.~a: !akes. c. 21ib~ schools, a cha.,'mino do;vnto',',,n, thri',rino businesses, windino trails, and i:eautif.'.'l parks. A grot place to live. worl(, and p:ay.
Ehlers & Associates
DRAFT
EHLERS
& ASSOCIATES INC
O~VI~W
Ehlers & Associates was engaged by the City of Chanhassen, Minnesota (the "City") to assist in
the preparation of the City's Key Financial Strategies. The need to create a comprehensive
financial management plan was identified by the City Mayor, Council, Manager and Staff due to
growing demands for financial resources. 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 results
from that session have been incorporated into this plan document.
OBJECTIVES FOR ~ FINANCIAL PLANNING PR~
A financial plan is a necess~ 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 ne2.xls 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 the new standard presented in the Governmental Accounting
Standards Board Regulation 34 including its capital planning provisions.
Through this workshop process we have examined the current and fimne 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 the furore and a framework for future
decision-making.
City of Chanhassen - Key Financial Strategies 030403
Ehh','s & Associates DRAFT
FINANCIAL ASSESSMIO~- FINDINGS
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 report. A summary of
these findings is as follows:
1) COMMUNITY GOALS/INITIATIVES - Establishing a strategic profile
including community vision (purpose), goals (means to achieve the purpose),
strategies (directed at accomplishing goals) are essential to the efficient and
effective use of scarce City resources.
A) Important Initiatives -- City Of-ficial.~ have identified several initiatives as
part of this financial planning process. Key issues include:
· Maintain city infras~~. This includes:
o Pavement Management System
o Sewer and Water Infrastructure
o Park Pavement Maintenance
o Vehicle and Major Equipment Replacement
o Water System Improvements
o Public Facility Maintenance.
· Enhance and protect city environment. This includes:
o Upda~ SWMP
o Wa~-u'shed Im.mx)vements
o NPDES Phase II compliance
o Lake Monitoring/Improvements
o 2007 Environmental Pund Solvency Issues
o Bluff Creek Improvement.
· Managing growth. This includes:
o Future stafl~g issues
o 2005 MUSA
o City Trails
o Comprehensive Plan Update
o Establishing an Affordable Housing Land Trust and
Expansion of Public Works Facility.
o Improve City Services
City of Chanhassen - Key Financial Strategies 030403 Page 2
Ehle,:~ & 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 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 soumes for
implementation.
· Implementation.
B) Facility Options -- City Officials are looking at options for public facilities
including a water treatment system, Department of Public Works expansion,
a Community Center and land purchase for a high school.
Implication: Involving the public with this process will be key to
progressing this issue to the implementation phase. Care~ 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 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 obsolescence.
City of Chanhassen - Key Financial Strategies 030403 Page 3
Ehlt','s & Associates DRAFT
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 future.
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. 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 increasing an average
10% per year for the past 5 years. The City has a high per capita market value of
$88,ooo.
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 itserf. 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 - Chan~ 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
the 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. The balance includes a variety of open space and ingtitutional uses.
Implication: Tax base diversification is a positive trend for stability in City services
requirements and property tax production. Continued effort to maintain this ratio'of
residential to commercial base would benefit the community.
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
diversification that exists today. To encourage continued balanced community
growth the City will consider appropriate strategies.
City of Chanhassen - Key Financial Strategies Page 4
Ehl,,r, & Associates DRAFT
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 practices has left the City with a moderate
undesignated, unreserved 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 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 to increase operating
expenses without an offsetting increase in non-property tax revenues.
C)The City has developed effective loss reduction strategies (accident review, safety
committee). Additional risk management efforts including review of risk retention
levels, deductibles, funding of loss reserves may be warrant.
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
infrastructure (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, continued annual
investment will be n~xied. 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 addres~
Implication: The City has not initiated a plan to review the need for reinvestment in
this facility.
City of Chmdmssen - Key Financial Strategies Page 5
Eh/ers & Associates DRAFT
C) Potential need for reinvestment in public facilities infras~ needs may increase
the property tax above the normal inflationary increase. The City has major
investments in buildings, utility systems, streets, paths, 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 (see attached)
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.
s)
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 defenv. A as part of budget balancing
efforts. In the long term this may increase maintenance costs, in~ 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 service~.
E) The City faces potential major expenditures in its Water Fund for water treatment.
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 rote plan to facilitate
the required improvements. Water rates are currently subsidizing sewer operations.
COMPETITIVENESS - 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 rote 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 servieea, 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
m,t~,.~ · ~.,o,.i~te, 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 will be a key factor for furore
considerations.
CREDIT PosmoN 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 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 rote changes.
Implication: This strong credit rating has helped the City s~sfully issue debt at
very competitive interest rates in the commercial marketplace.
B)The City's debt burden is high at $4,(g)0+ per capita and 4.'7%, but reflects community
growth needs and overlapping debt of other governmental units. These burden ratios
have been falling due to community growth and value increases. 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 needed.
C) The City currently has a moderate undesignated 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 Chanhassen - Key Financial Strategies Page 7
As. o iotes DRAFT
ENTERPRISE- Operating enterprise funds as businesses is key to avoiding transfen~g
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 incre~ed rotes since 1998. The
City recently completed a rate study related to the evaluation of a water treatment
investment. The study recommended 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 rotes. However, rates should be established to assure
recovery of operating costs and adjusted annually.
City of Chanhassen - Key Financial Strategies Page 8
Ehlers & Associates
DRAFT
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/INITIATIVES
1.1
GOAL SETFING:
The Mayor and City Council should continue annual goal setting session, prior to
budget preparation. The goal setting session should prioritize n~ds. 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
FACII.ITY ~-'I~S:
The City should continue the deliberate and careful approach to addressing facility
needs 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 future needs and financial
constraints. The plan should also forecast the process that will be used to seek-
community participation for significant commtmity 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 projected nee. da for the next five-year
period. The plan should also include a basis for evaluating the requests for
technology investments that address cost and benefits (not limited to financial),
productivity, training, support and potential obsol~ce and funding source
IMPLEMENTATION 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 mst_,~rials.
City of Chanhassen - Key Financial Strategies Pag~ 9
Ehlers & Associates
2.0
2.1
2.2
3.0
DRAFT
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 community needs.
FINANCIAL POSITION
3.1
FINANCIAL POLICIF_3:
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 cost of se~rvic~.
The City should revise assessn~nt practice to include pavement mana~ment cost
recovery through special assessments to benefiting property owners (i.e. increasing
assessments to property owners and including street maintenance such as crack
sealing).
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 INFRASTRU~ ! CAPITAL EQUIPMENT
4.1
CAPITAL EQUIPS:
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
INFRASTRU~:
The City staff should enact each annual capital imrm~vement program based on
review of the multi-year capital improvement nee. As.
The City staff should coordinate development of the capital improvement budget
with the development of the operating budget. FUrore ~g 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
Ehlers & Associates
5.0 COMPETITIVENESS
DRAFT
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 infrastmcmre, 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 opportunity for managing
property taxes and providing the greatest stability in tax rotes. Staff should
annually prepare three-year projections of tax levy. Community involvement in the
long range planning process will allow build support for the development of
resoumes to achieve goals the public has supported.
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 constructed by balancing resoumes with current and future needs.
The Financial 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 suppo~d with a balance of
input/resoumes and outcome options.
5.3
6.0
6.1
6.2
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 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.
City of Chanhassen- Key Financial Strategies Page 11
Ehte,-. As. oci,,tes DRAFT
6.3
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.
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
ENTERPRISE FUNDS
Annually, the Manager and Finance Director should review and recommend
necessary adjustments to water and sewer rotes 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 relatext 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, debt service.
City of Chanhassen - Key Financial Strategies Page 12
Elders & Associates
DRAFT
ACTION PI,AN
This section describes 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 fi'ames and work plans.
Projected Start Projected
Activity Date Level/Status Completion Date
1.0 Community Goals~Initiatives
1.1 Goal setting Bi-annual 1/1 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 CIP Annual 1/1 Annual
1.6 Expand e-city hall services -phase 1 2003 1/1 2004
1.7 City Commons Park 2003 4/1 2005
1.8 Develop funding options and plan for 2003 2/S 2004
Affordable Housing[ Land Trust
1.9 Identify options for replacing 2007 2004 1/$ 2005
Environmental Fund
2.0 Local Tax Base
2.1 Prepare plan for 2005 MI. ISA expanaion 2003 lis 2004
including capital and operating needs to
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 furore staffing requirement Annual lis April 2004
to match ~rowth
2.5 Update public subsidy policy 2004 4/A 2004
3.0 Finandal Position
3.1 Establish/Update User Charge Policy 2004 2.JA 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
4.0 lnfrastructure/Capit~ Equipment
4.1 Identify options for funding Pavement 2004 1/1 2005
Management System
4.2 Revise assessment practice to address Annual lis 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 IlS 2007
sourc~
4.5 Identify funding soumes for Park Pavement 2004 lis 2005
Maintenance
4.6 Construct trail additions Ongoing 1/1 N/A
4.7 Expand Public Works Facility Coordinate with 2/A N/A
water trea~t
project
4.8 Develop digitized document archives 2003 3/I Ongoing
4.9 Identify funding options for High School land 2003 3lA 2004
4.10 Develop estimates for public facilities 2005 2/S 2006
maintenance
5.0 Competitiveness
5.1 Property tax need review Annual IlS 2005
5.2 Review budget option analysis as part of Annual 2/S Annual
budget process
5.3 Pr~are 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 US 2005
5.6 Develop customer service feedback systems 2004 2/S 2005
for key City services
5.7 Community Center / Ice Arena 2005 3lA 2007
5.8 Quality assurance for law enforcement/public 2003 lis 2004
safety
6.0 Credit
City of Chanhassen - Key Financial Strategies Page 14
eroj Start
Activity Date Level/Status Completion Date
6.1 Accept Key Financial Strategies 2003 21I 2003
6.2 Adopt debt policies as outlined in Credit 2003 2/1 2003
section of report.
6.3 Establish/Update Fund Balance Policy 2004 2/S 2004
7.0 Enterprise
?. 1 Update Storm Water Management Plan Underway 1/1 Ongoing
1. Watershed improvement impacts
2. Bluff Creek improvements
3. Lake Monitorin$/1mprovement
?.2 Evaluate/initiate Water Treatment 2003 1/S 2004
Improvements
7.3 Identify funding source for sewer and water 2003 1/1 2004
infrastructure replacement
7.4 NPDES Plan H compliance Underway I/A 2007
7.5 Review general fund cost for enterprise 2004 2/S 2004
services for rote consideration
7.6 Adjust user fees on annual basis to reflect Annual IlS Annual
chants in cost of services.
7.7 Develop utility rote policy 2003 1/1 2004
PRIORITY DEFINITIONS:
LEVEL 1 Critical to continued operation of city baseline sexvices at present levels. This includes restm'afion of
LEVEL 2 Provides opportunity for increased efficiency in baseline level of services. This include-s ability to
continue to seawe existing level of services without staff increases.
LEVEL 3 Provides opportunity for expansion of services to meet existing demand as evidenced by Council
direction or staff analysis.
LEVEL 4 Provides opportunity to increase servi~ that i .reprove quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Chanhassen - Key Financial Strategies Page 15
EHLERS
& ASSOCIATES INC
Funding Community Facilities
Public Participation Process
Thc traditional approach for funding community facilities has relied upon a process that
prepares options, cost and financing options. The plan is carefully prepared by staff,
elected officials and sometimes representatives from thc general public. This plan is then
presented to the public for "buy-in". This buy-in is generally necessary regardless of the
type of funding. A number of communities have found that including the public earlier in
this planning process provides a better final result and increases community support for
the project. Another key distinction between this process and the traditional approach is
that this process involves elected officials as policy leaders throughout the process.
Traditional approaches focus on elected official involvement at the beginning and end
stages. The basic elements of the process includes the following steps:
Communicate the Problem · Identify the implications of not addressing or solving the problem_
· If possible forecast the problem in advance of needing to address problem_
· Explain impact of not solving problem as outcome statements and impact on
residents and customers.
· Develop chronology of communications on important issues.
· Develop methods to asSeSS commullity understanding of problem and impact
of problem on community.
· Develop communications plan to support effort.
Communicate the Process · Develop a process appropriate to problem (i.e. task force, staff report,
commission study, etc.).
· Communicate process including specific opportunities for broader public
involvement.
· Establish clear expectations regarding community involvement.
· Solicit suggestions for changes in the process.
· Feedback community response to the facility problem_
· Request options to be cvahmt~
· Review and refine problem statement.
· Maintain chronology.
Communicate the Options
· Communicate options generated from process, including funding, building
location, building cost, etc.
· Develop clear evaluation criteria for option including advantages and
disadvantages.
· Request feedback on additional options.
· Request feedback on evaluation criteria.
· Request feedback on evaluation.
· Reaffirm problem statement and process.
· Maintain chronology.
Communicate the Selected Option · Communicate selected option.
· Respond specifically to suggested options and evaluation criteria.
· Communicate basis for selection.
· Provide balanced evaluation including disadvantages of option.
· Reaffirm problem statement, process and options.
· Maintain chronology
· Identify next steps for implementation.
Community participation is typically centered around "open houses" held at strategic
times during the process. In some cases multiple open house meetings to seek
community feedback is neextext. It is vital to assess public acceptance prior to proceeding
to the next step in the process. For example if the public is not accepting that there is a
need for the facility under study additional efforts should be undertaken to communicate
the need before proceeMing to the options stage. Elected officials play a key role in this
process. Their assessment of community support during various phases is critical. Other
key features of this process include developing a communication plan that will
encourage broad based community involvement at ~ houses and in the process in
general.
C:~Documents and Setting~M~ Setttng~Temporary lnternet Ftle.6DLKl~ ~ proces~doc
EHLERS
& ASSOCIATES INC
KEY FINANCIAL STRATEGIESTM
EVALUATION
Please review the following questions relating to the strategic planning session conducted
by Ehlcrs & Associates. Your feedback will be used to improve services to our clients.
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Se
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go
The amount of time allotted for sessions was appropriate.
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree
5.strongly Agree
KFS materials were useful in development of the final product.
l-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5.strongly Agree
I had a reasonable oppo~ty to participate in the process.
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree
5-Strongly ngree
My input was reflected in the final product.
1-Strongly Disagree 2-Disagree 3-Neutral
4-Agree
5-S ongly
Thc facilitators coordinated thc proc~ effectively.
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree
5.strongly Agree
KFS process provided an opportunity to identify financial issues facing our city.
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree
Overall, I believe KFS will enhance financial planning for our community.
1-Strongly Disagree 2-Disagree 3-Neutral 4-Agree 5-Strongly Agree
Compared to other planning sessions, I would rate this session as:
1-Superior 2-About the Same 3-Not as Good
9. Suggestions / Comments
PI.~.ASE MAH. OR FAX TO:
Nancy DeMarlas, Evaluation Coordinator
nad@ehlers-tnc.com
gh~,~rs & Associates, ~
3060 Centre Potnte Drive ~ MN 55113
Phone: 651497~00 * FAX: 6~1-697-8~55