A Key Financial StrategiesCITYOF
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FROM:
DATE:
SUB J:
Todd Oea'hgn~ City
TI# Clly el Ckamkalaim. A poe~O ~ gllh claan laJms, grainy schools, a tttgndno Ooeutog~ hlvt)g Ixn~lesaa, wlmlfKi Iralb, and Ixnm~llui per'~ A Oamt p#ce ko ~ ~ ~ ~
1.O CObtblUNlTY GOALS/INITIATIV~ AND LOCAL TAX~ASE
CONSIDERATION
1.1
information should be used by staff m develop progrsm~, service options and
Financial slrategies should be iac~lxxa~d into th~ annual goal setting pmgrsm.
1.2
1.3
COMMUNICATION PLAN:
A communications plan should be developed in c~ler ~o inform and seek
community feedback on impommt financial issues incbuting future needs and
financial conslraints. The plan should also forecast the process that will be used to
Conducting a comrmmity 811r'voy will help identify the typ~ of aa-vices vital to
attract and retain reaiclents. Consideration should be given to ~ the
survey to collect information regarding improving the City's competitive position,
economic development, quality of life, school funding inequity and possible
intergovemrmntal / tax sharing solutions.
Consideration should be given to continuing the use of the "Funding Public
Facilities Public Participation Process" model in City facilities planning (see ·
attached).
2.0
2.1
~hould provide re~xuc~ to accornpti.h the goah.
3.1
3.2
CITY OWNED INFRASTRUCTURE I CAPITAL EQ~
develop a fund/nE l~rogram to l~rovicle a more level annual replacement
contribution. The City could eatabliah an inteaxmiiy funded e~/uipn~t rental
program to level out annual replacenamt costs.
INFRASTRU~:
The City staff should enact each annual capital i .m?ovement program baaed on
review of the multi-year capital improvement needs.
The City ~ff should coordinate development of the capital i .m!~vement budge~
with the development of the opeaging l~dget. Future operating coa~ aagx~md
forecasts.
The City should prepare a non-annual mmrdng main~ce schedule for City
facilities.
4.O
4.1
4.2
PROPERTY
The City's tax rate is curreffdy signifi .¢affdy below the state Broil In managing
propem] taxes, the City will seek a balance between providing an appropriate level
of service, maintaining im~rastructu~ and affordabih'ty for resideats. Having the
lowest protmty taxes is not always the final measure of thia bolance.
Oiven these limits and demm~ls on Ixoperty taxes, the City should r~view and
imp, mt a revenue ~ study for additional revenue options includln~
Continued long range finsncial planning crea~ the oppommity for managing
prope~ taxes and providing the great~ stability in tax m~s. Staff ~ annually
prepare three-year projections of tax levy. Community involvcme~ in the long
ranl~ planning process will allow the developrmmt of resources within the budget
BUDGET:
The current City practice is to target only an infl~iomwy increase in the following
year's operating budget. In order to provide direction to staff, the Mayor and City
Impact Worksheets that would be included in next year's budget This budggt
should then be ~ by balancing ~ with cunm~t and futura needs.
City's budg~ process.
Annual budgets should include budget option analysis for 5% to 10% of total
Budget presen~ and discassi~ should be supported with a balance of
input/resources and outcome mat~risl~.
5.1
5.2
Cl gr lT PosmoN
The approv~ of Key P'mancial Strmrgies by the Mayor and City Council will help
document the future City plan to Moody's Investors Service.
The City will endeavor to keep the total maturity length of gene~ obligation bonds
below 20 years and at least 50% of the principal shall be retired within ten years.
5.3 Thc City will plan debt to avoid issuing mor~ than $10,000,000 in tax-exm~pt
bonds during any calendar year and apply ~)ank qualified" statas to all issues.
5.4
The City will plan debt to avoid arbilrsge ~ and report~.' g by (a) not ism.ting
more than $5,000,000 in tax-exem~, bonds during any caleodar year or (b)
exponding bond proceeds within the time limitations for rebate exemption ~
by federal regulations.
5.5
The City will work to minimb,¢ th~ ~ount of debt ~ by pmpeaty taxes and
will seek maximm~ u~ of spca:iai aa~nenta, utih'ty r~w~mu~ and oth~ non-tax
5.6
The City will ~omply with Se~fitiea ~ Commi~ion ($EC3 repozling
req~ ~nd mgulationa on ~antinuing di~loaure aa they apply t~ e~e,h bond
issue.
5.7
through refinancing at lower interest rutes and the early t~immeot of bonds.
6.1
Annually, the Managur and Ninance ~ should l~view and mcommeud
necessary adjustmeuts to water and sewer rates for consid~zaIion by the Mayor and
6.2
City staff should id~tify the cost of genre-al fund ~wices provided to
~cdvities including insurance, financial and a~.,o~ services, management, legal
and l~lalezt expenses. These costs should be evaluated by the City Council for
inclusion in the rates for entre'prise sea'vices.
ACTION PLAN
This section describes the actions needed to implement the City's Key l~nancial Strategies.
Actions fall into two categories: Tasks for immediate action, and tasks that reflect on-going
at'tcntion ov~ ~ next five-year period, lmplcm~mtutlon of these ~ l~mancial Strategic8 ~
annual review and Ul~ng thc Plan and ~Msion of thc schedule prior to inil~ting thc budget
process. ~ arm~on should be tmid to d~w~loping r~istic lime frames and work plm~.
Acltvtt~ Dale ~ Comph~tion Date
3.4 Ulxlale debt managen~nt plan 2005 lis 2006
3.5 Establish/Update Investment Policy
3.6 Establish/Ul:~n~. Risk Management Policy
3.8 H. stab~ Budt~ Control and
,l.O Coml~n~n~s
4.1 Identify options for funding Pavement 2004 1/I 2005
Mana m t Sy,t m
pavena~nt management and conaide~r
4.4 ~ f~mdng option~ f~ maj~ {~luil~t 2006
4.5 Identify funding sources for Park Pavemenl 2004 I/S 2005
4.6 Constn~ trail additiona Ongoing 1/I N/A
4.7 Expand Public Works Facility Coordin~- with2/A
water
4.8 Develop document archives 2003 3/I
4.9 Identify options for High School land Comp~ 3/A
4.10 Develop estima~ for public facilities 2005 2/8 2006
maintenance
5.0 Crad~ Po~tioa
5.1 Property tax need ~eview Annual 1/S 2005
5.2 Review budg~ option analysis a~ part ofAnnual
bud t
5.3 Propa~ three year budget forecasts Annual
5.4 Identify a limited numb~ (1-3) of ~elected Annual
services for competitive pricing on annual
basis
5.5 Prepa~ alternate revenu~ analyais 2004 1/S 2005
5.6 Develop customer service feedback sym~ns 2004 2005
for key City services
5.7 Co~',rnunity Con~ / Ice Arena 2005 3/A 2007
5.8 Quality assurance for law enf~t/tmblic 2003 I./S 2004
5.9 Prepa~ budget option analysis Annmd
6.0 E~~ Funds
6.1 Accept Key Financial Stramgies 2003
section of rqx~
6.3 Establish/U~- tland Balance Policy
7.0 Financial Potlci~
?.1 ulx~ Storm Wa~r ~m~ent
1. W~ i .m!~ovewcnt
7.2 Writer Treatmeot T .mln'ovements Undezway
7.3 Identify funding aoume for sewer and wntm' 2004 1/I
7.4 NPDES Plan TI' compliance Underwny 1/A 2007
7.5 Review general fund cost for enmrptise
7.6 Adjust user feea on annual basis to reflect A~nual 1/S
chan[~..s in cost of services.
PglQRITY D~FINITIONS:
I.RVEL 1 Critical to continu~xi ~on of city ba~line scrvicea al present levels. This includ~
resmr~on of servic~ identified as ba~line.
T.RVEL 2 Provides opportunity for ~ efficiency in baseline leval of services. This
T.RVEL 3 Pmvid~ oppommi~ for ex[mnsion of services to meet exisling demand as evidenced
by Council ~on or staff analysis.
I Implementation
S Study Need
A Assess Need