1e. Key Fin Stat/Strategic PlnCITYOF
CHANHASSEN
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
DATE:
RE:
Justin Miller, Assistant to the City Manager. T/,,~
March 1, 2004 ~/~ .
Key Financial Strategies/Strategic Plan
BACKGROUND
For the past several weeks, the City Council and staff have been working together
to formulate a Key Financial Strategies/Strategic Plan for 2004. The basis of this
work was last year's KFS document, along with new goals added by the City
Council this year.
Attached is staff's recommended 2004 Key Financial Strategies/Strategic Plan
document. It incorporates what was discussed in two previous Council work
sessions, and outlines timeframes and action steps for the major issues.
RECOMMENDATION
Staff recommends that the City Council approve the attached KFS/Strategic Plan
document and direct staff to begin implementation immediately.
The Cily of Chanhassen · A growing ogmmLmity' wit! clean lakes quaii~y schools a charming downtown, thriving businesses, winding trails, and beautiluI parks A greal place to live work and pla!
Key Financial Strategies
Ehlers & Associates
O t EHLERS
& A$SO~:IATE:S INC
KEY FINANCIAL STRATEGIES
/
OVERVIEW
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.
This plan was updated in February 2004 during a series of workshops with the City Council.
OBJECTIVES FOR THE FINANCIAL PLANNING PROCESS
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 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 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 the future and a framework for future
decision-making.
City of Chanhassen - Key Financial strategies
Ehlers & Associates
FINANCIAL ASSESSMENT - 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), and
strategies (directed at accomplishing goals), which are essential to the efficient
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 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 Update SWMP (Storm Water Management Plan)
o Watershed Improvements
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 staffing 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
Ehlers & Associates
B)
C)
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 Community 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.
Facility Options -- City Officials are looking at options for public facilities
including a water treatment 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.
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 limit~ed to financial), productivity,
.training, support and potential obsolescence.
City of Chanhassen - Key Financial Strategies Page 3
Ehlers & 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
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.
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
$88,00O.
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.
¢)
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.
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
rises.
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 financing.
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
Ehlers & Associates
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
incrdase 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 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 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 addressed.
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
s)
Ehlerx & Associates
c)
Potential need for reinvestment in public facilities infrastructure needs may increase the
property tax above the normal inflationary increase. The City has major investments 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.
Impli~cation: 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 future 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 infrastructure
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.
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
City.
A) The City's overall City tax rate remains competitive with other comparable communities
in the metro area. (52nd 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
Ehlers & Associates
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 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 $4,000+ per capita, but reflects community growth
needs and overlapping debt of other governmental units. These burden ratios hav6 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 th~ 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
Ehlers & Associates
7)
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
Ehlers & 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/INITIATIVES
1.1
GOAL SETTING:
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
FACYLITY NEEDS:
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_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.
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 requests for
technology investments that address cost and benefits (not limited to financial),
productivity, training, support and potential obsolescence and funding source.
1.5
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 materials.
City of Chanhassen - Key Financial Strategies Page 9
Ehlers & 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
community needs.
FINANCIAL POSITION
FINANCIAL POLICIES:
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.
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 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
property 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 EQUIPMENT
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.
INFRASTRUCTURE:
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
Ehlers & Associates
development of the operating 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.
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 infrastructure, 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 b]ll 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 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 govemment 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 constructed by
balancing resources 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 supported with a balance of input/resources
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
Ehlers & Associates
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 sta~ff, 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
ENTERPRISE FUNDS
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.
7.2 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.
7.3 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.
7.4 City staff should identify the costs to meet mandated water quality standards and
the impact on water rates.
7.5 City staff should continue to monitor storm water management program (SWMP)
to ensure compliance with state and federal regulations.
City of Chanhassen - Key Financial Strategies Page 12
Key Financial Strategies
A ctio n Plan
Ehlers & Associates
ACTION PLAN
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 frames and work plans.
Projected Start Projected
Activity Date Level/Status Completion Date
1.0 Community Goals/Initiatives
1.1 Goal setting " Bi-annual 1fl N/A
1.2 Facility needs study 2006 2/S 2007
1.21 City Commons Park 2003 4/I Completed
1.22 Identify funding options for school land 2003 3/A 2008
1.23 Community Center / Ice Arena 2005 3/A 2007
1.3 Prepare financial strategies communication 2004 2005
plan
1.32 Conduct community survey to assess 2005 1/S 2005
community knowledge of and support for
new initiatives, facilities services and fees.
1.4 Expand e-city hall services -phase I 2004 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 1/S 2005
Environmental Fund
1.6 Create plan to deal with public safety issues 2004 I/2 2004
as growth continues
1.7 Monitor implementation of sheriff's 2004 I/1 2004
Maximus study
1.8 Hwy 212/312 - update on design, land use 2004 I/2 2004
and vision of corridor
1.9 Communicate what City Council does 2004 I/4 2004
2.0 Local Tax Base
2.1 Prepare plan for 2005 MUSA expansion 2003 1/S 2004
including capital and operating needs to
accommodate growth.
2.12 Review land uses in 2005, 2010 and 2015 2004 2/S 2004
MUSA areas
2.13 Update Comprehensive Plan 2008 2/S 2009
2.2 Update public subsidy policy 2003 4/A Completed
City of Chanhassen - Key Financial Strategies Page 13
Projected Start Projected
Activity Date Level/Status Completion Date
2.3 Analyze methods to leverage/market City 2004 4/S 2004
owned land
3.0 Financial Position
3.1 Estal~lish/Update Budget Control and 2004 2/S 2004
Financial Control Policy
3.11 Update fund balance poli~'ies 2004 2/S 2005
3.12 Update debt management plan 2005 1/S 2006
3.13 Establish/Update Investm'~nt Policy 2004 2/S 2004
3.2 Explore franchise fee in context of financing 2003 1/S 2004
needs
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 1/S 2005
Maintenance
3.5 Create plan for TIF districts returning to tax 2004 2/I 2004
rolls
3.6 Better council direction in the budget process Ongoing 2/1 Ongoing
3.7 Review decisions based on costs/benefits Ongoing 2/1 Ongoing
3.8 Incorporate strategic planning into budget Ongoing 2/1 Ongoing
process
4.0 Infrastructure/Capital Equipment
4.2 Identify options for funding Pavement 2004 1/I 2005
Management System
4.21 Develop estimates for public facilities 2005 2/S 2006
maintenance
4.22 Prepare non-annual recurring maintenance 2005 1/S 2005
schedule
4.23 Prepare funding options for major equipment 2004 1/S 2004
sources
4.24 Construct trail' additions Ongoing 1/I N/A
4.25 Expand Public Works Facility Coordinate with 2/A N/A
water treatment
project
4.3 Highway 101 gap project 2004 1/S 2006
5.0 Comp"etitiveness
5.1 Property tax review Anhual' 1/S Annual
5.11 Prepare five year budget, CIP and debt Annual' 2/S "' Annual
forecasts including revenue forecasts
City of Chanhassen - Key Financial Strategies Page 14
I Projected Start Projected
Activity Date Level/Status Completion Date
5.12 Prepare alternate revenue analysis 2004 1/S 2005
5.13 Identify and fund future staffing requirement Annual 1/S Annual
to match growth
5.2 Identify a limited number (1-3) of selected Annual 2/S Annual
services for potential competitive pricing on
annual basis
5.21 Review budget option analysis as part of Annual 2/S Annual
budget process
5.3 Establish/Update Risk Management Policy 2004 2/S 2004
6.0 Credit
6.1 Accept Key Financial Strategies Annual 2/1 Annual
7.0 Enterprise
7.1 Adjust user fees on annual basis to reflect Annual 1/S 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 1/S 2004
Improvements
7.41 Identify funding source for sewer and water 2003 1/I 2005
infrastructure replacement
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 1/A 2007
PRIORITY DEFINITIONS:
LEVEL 1 Critical to continued operation of city baseline services at present levels. This includes
restoration of services identified as baseline.
LEVEL 2 Provides opportunity for increased efficiency in baseline level of services. This includes ability to
continue to serve 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 services that improve quality of life within City.
I Implementation
S Study Need
A Assess Need
City of Chanhassen - Key Financial Strategies Page 15
2004 Key Financial Strategies
and Goals
oo oB B
!
· o Cz,
0 ~
0
0
GOAL #4
Infrastructure/Capital Equipment
[STRATEGY #4.2
Identify Options for Funding Pavement Management Program.
Target Completion Date
2004
DEIqNE GOAL ACCOMPLISHMENT
Review Pavement Management program and funding options to ensure long term preservation of pavement system network.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Work session - review funding for
2004 street improvement projects and PO PO,MS,BD 2/04
future projects
2. Work session- review and refine
future street improvement projects PO PO 5/04
with funding options.
3. Monitor
4.
5.
6. ~
7.
8.
Infrastructure/Capital Equipment
GOAL #4
STRATEGY #4.23
Prepare Funding Options for Major Equipment
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Prepare a list of financing methods with their impacts on tax levy, debt level and costs.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. List available options and expenses BD BD 5/04
from CIP
2. Determine probable debt and tax BD BD 6/04
levels with each option
3. Present options to City Council to BD BD '7/04
determine strategy in preparing 2005
budget
4.
5.
6. ,
7.
8.
9.
GOAL #4
Infrastructure/Capital Equipment
tSTRATEGY #4.24
Construct Trail Additions
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Complete State Highway 41 pedestrian trail connector
ACTION sTEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Prepare consultant RFP TH CC, TH, PO 2/04
2. Select consultant TH CC, TH, PO 3/04
3. Design plans and specifications TH CC, TH, PO 4/04
4. Award project TH CC, TH, PO 6/04
5. Final. completion TH CC, TH, PO 9/04
6.
7.
8.
9.
10. ,
GOAL #4 I
Infrastructure/Capital Equipment
STRATEGY #4.3
Highway 101 Gap Project
Target Completion Date
20O6
DEFINE GOAL ACCOMPLISHMENT
Investigate methods to accelerate construction of Highway 101 Gap between W 86th Street and Lake Drive
This project may also include the upgrade of old 101.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSI INDIVIDUALS COMPLETION
BLE DATE
1. Review gap project with MnDot and PO PO,MS,TG 3/04
county, identify scope of project, costs and
potential funding sources
2. Review Status of Project with Council PO PO,MS,TG 3/04
3. Council Consider adoption of resolution for PO PO,MS,TG 3/04
application of Access Management Funds
4. Identify agency funding participation PO PO,MS,TG 6/04
5. Council Considers Adoption of PO PO,TG 6/04
Memorandum of Understanding with
MnDot
6. Discuss with other governmental agencies PO PO,MS,TG March-Sept 2004
and legislative representatives alternative
funding sources
7. Governmental agency responsibilities and PO PO,MS,TG 12/04
cost participation identified
8. Prelim/nary Design Complete - Old and PO PO,MS,TG, TH, 2/05
New 101. LH
"'9. Stream Realignment and Fish Barrier Work PO PO, MS, LH 2/05
~ Final Design Complete
10. Stream Realignment and Fish Barrier Work PO PO, MS,LH 6/05
- Construction Start
11. Stream Realignment and Fish Barrier Work PO PO, MS,LH 9/05
- Substantial Completion
12. Final Design Complete - Old and New 101 PO PO, MS,LH, TG, 9/05
TH
13. Construction Start - Old and New 101 PO PO, MS 5/06
14. Substantial Completion - Old and New 101 PO PO, MS 9/06
GOAL//5
Competitiveness
STRATEGY//5.11
Target Completion Date
2004
Prepare Five Year Budget, CIP, Debt, and Revenue Forecasts
DEFINE GOAL ACCOMPLISHMENT
Provide five year projections for operating and capital budgets, as well as revenues and debt service.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Departments submit budgets to BD Dept. Heads 7/04
Finance
2. Finance produces five year estimates BD Dept. Heads 8/04
3. Projections presented to Council as BD BD, TG 9/04
part of budget process
4.
5.
6.
7.
8. ,
9.
10.
GOAL #5
Competitiveness
STRATEGY #5.12
Prepare Alternate Revenue Analysis
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Prepare list of pOtential new revenue sources with probable amounts raised for City Council consideration during budget development.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Survey of alternate revenue sources BD BD, CTF 6/04
2. Estimate of potential revenue raised BD BD, CTF 7/04
3. Presentation to City Council BD BD 8/04
4.
5.
6.
7.
8.
9.
GOAL #5
Competitiveness
STRATEGY #5.2
Identify Limited Number of Services for Potential Competitive
Pricing
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Each year Council and staff should identify 1-3 services currently provided by city staff to competitively bid out to determine
competitiveness.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Council and staff identify services to CC, TG Dept. heads 4/04
bid out
2. Staff compiles RFPs for bidding TG Dept. heads 5/04
3. RFPs are advertised TG Dept. heads 6/04
4. Results are tabulated TG Dept. heads 7/04
5. Council and staff review results .CC, TG Dept. heads 7/04
6.
7. ,
8.
9.
10.
GOAL #5
Competitiveness
STRATEGY #5.21
Review Budget Option Analysis as Part of Budget Process
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Each department should identify an alternate budget that would reflect a 10% decrease in expenditures either through spending cuts or
revenue enhancements.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Departments submit preliminary BD TG, BD, KA, TH, 7/04
budgets PO, JM
2. Department heads identify 10% cuts BD TG, BD, KA, TH, 9/04
PO, JM
3. Alternate budgets are presented to BD TG, BD, KA, TH, 10/04
Council PO, JM
4.
5.
6. ~
7.
8.
9.
GOAL #5
Competitiveness
STRATEGY #5.3
Update Risk Management Policy
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Update risk management policy to minimize exposure to accidents and high insurance premiums.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Convene Safety Committee JM JM, CW 9/04
2. Review current practices JM JM, CW 10/04 ..
3. Consult with St. Paul Companies JM JM, CW 10/04
4. Present revised policy to Council JM JM, TG 11/04 ....
5.
6.
7.
8.
9.
GOAL #6
Credit
STRATEGY #6.1
Accept Key Financial Strategies
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Adoption of the KFS/Strategic Planning document after council and staff input are incorporated.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Review previous year's KFS action CC CC, TG, JM 1/12/04
plan
2. Review changes, incorporate with CC CC, TG, JM 2/17/04
strategic planning document
3. Monitoring CC CC, TG Throughout year
4.
5.
6.
7.
8.
9. ,
10.
IGOAL//7
Enterprise
STRATEGY #7.1
Adjust User Fees on Annual Basis to Reflect Costs of
SerVices/Update User Charge Policy
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Analyze user fees (utility rates, other fees) to determine if costs are being sufficiently covered and reserves are kept at appropriate
levels.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Itemize all user charges from each BD Dept. Heads 9/04
department
2. Determine appropriate cost recovery BD Dept. Heads 10/04
level for each change from 0-100%
3. Review penalties and cancellation BD Dept. Heads 10/04
fees
4. Present revised fee schedule and BD BD 11/04
changes to Chapter 4 of the City ,
Code to the City Council for 2005
5.
6.
GOAL g7
Enterprise
STRATEGY #7.2
Review General Fund Cost for Enterprise Service Rate
Consideration
Target Completion Date
2004
DEFINE GOAL ACCOMPLISHMENT
Establish transfers to General Fund from Special Revenue and Enterprise Funds for administrative and overhead costs.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Determine appropriate cost drivers BD BD, KA, JM, PO 7/04
for each fund and how the general
fund is affected
2. Generate direct cost and overhead BD BD, KA, JM, PO, 8J04
allocation bases for each fund BE
3. Present options to City Council to BD BD 8/04
determine tax levy strategy in
preparing 2005 budget
4. ,
5.
6.
7.
GOAL #7
Enterprise
STRATEGY #7.4
Initiate Water Treatment program
Target Completion Date
2005
DEFINE GOAL ACCOMPLISHMENT
Begin implementation of water treatment process.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Award contract to design consultant PO PO, MS 4/04
to work on preliminary design
2. Preliminary design with options PO PO,MS,KJ,TG 7/04
submitted to City with updated costs
3. Staff, Council and CAP group review PO PO,MS,KJ,TG 8/04
preliminary design and submit
comments
4. Final design complete PO PO,MS,KJ,TG 12/04
5. Bids received PO PO,MS 1/05
6. Construction start PO PO,MS 4/05
7. Substantial completion PO PO,MS,KJ 12/05
8. ~
9.
10.
IGOAL #7
Enterprise
ISTRATEGY #7.5
Update Storm Water Management Plan
Target Completion Date
2005
DEFINE GOAL ACCOMPLISHMENT
A surface water management plan (SWMP) that accurately reflects the current state of storm water management in Chanhassen;
accommodates for future development; achieves compliance with applicable federal, state and local requirements; integrates other
local water management plans; and provides a stable source of financing for surface water management-related endeavors.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Develop Request For Proposals LH LH 3/04
2. Approve RFP CC CC/LH 4/04
3. Evaluate RFPs LH LH/Eng./Plan. 5/04
4. Select consultant LH LH/Eng./Plan. 6/04
5. Award contract CC CC/LH 7/04
6. Preliminary data gathering LH LH/Consultant 9/04
7. Final draft LH LH/Consultant '12/04
8. Adopt updated SWMP , CC CC/LH 2/05
9.
10.
IGOAL ~
Enterprise
STRATEGY #7.51
NPDES Phase II Compliance
Target Completion Date
2008
DEFINE GOAL ACCOMPLISHMENT
Ensure compliance with National Pollutant Discharge Elimination System (NPDES) Phase II Municipal Separate Storm Sewer System
(MS4) Permit and all subsequent modifications by implementing Storm Water Pollution Prevention Program (SWPPP and preparing
and submitting annual reports in a timely fashion.
ACTION STEPS PRIMARY KEY TARGET COMMENTS
RESPONSIBLE INDIVIDUALS COMPLETION
DATE
1. Prepare and submit annual report LH LH 3/04
2. Continue administration of SWPPP LH LH/Po~ 3/08 Ongoing (see SWPPP)
3, Conduct public meeting CC CC/LH 2/05
4. Prepare and submit annual report LH LH 3/05
5. Conduct public meeting CC CC/LH 2/06
6. Prepare and submit annual report LH LH 3/06
7. Conduct public meeting CC CC/LH 2/07
8. Prepare and submit annual report, LH 'LH 3/07 ...~
9. Conduct public meeting CC C'C/LH 2/08
10. Prepare and submit annual report LH LH 3/08
2004 Key Financial Strategies
Calendar
2004 Key Financial Strategies Calendar
Strategy~_ Who's Responsible_
Strategy 1.1 Annual Goal Setting Todd G./Justin
Strategy 1.4 E-City Hall Rick
Strate~ 1.7 Sheriff's Contract Todd G./Justin
Strate~ 2.3 M~ket City-Owned Land Justin
Strate~ 6.1 Review Key Financial S~ategies Todd G/Justin
Strate~ 2.1 2005 ~SA Feasibility Study Paul~ate
Strate~ 3.4 Assessment Practices Paul
Strate~ 4.2 Pavement Management Pro.am
Todd H.
Strate~ 4.24 TH 41 Trail
Strate~ 1.6 Public S~ety Plan Todd G./Justi~Jim Olson
Strate~ 3.1 Fund Balance Policy Brace DeJong
Strate~ 3.13 hvestment Policy Brace DeJong
Strate~ 4.3 TH 101 Gap Project Paul Oehme
Strate~ 7.5 Sto~ Water Plan Update
Kate~ofi~aul
Strate~ 7.51 ~DES Phase H Compliance
Strate~ 1.3 Community Pla~Outcomes Todd G./Jim Prosser
Strategy 1.51 Environmental Fund Options Kate~mce
"Does"
Todd G./Justin
Strategy 1.9 What Council Plan
Strategy 3.1 Budget Control Policy Todd G.~mce
Strate~ 3.41 Fund Sources for Pavement Mgmt. Bmce~aul
Todd G.~aul
Strategy 3.5 T~ Plan
Paul
Strategy 7.4 Water Treatment
Strategy 1.8/2.12 Land Use Study Kate
Strate~ 3.2 Franchise Fee Study Todd G.~mce
Strate~ 4.23 Funding Options for Equipment Pau~mce
Heads
Strategy 5.2 Services for Competitive Pricing
Strate~ 5.12 Alternative Revenue Analysis Depmment Heads
Strate~ 5.11 5 Ye~ C~ Budge~evenue Dep~ment Heads
Strate~ 5.13 Staff Requirements Dep~ment Heads
Strategy 5.21 Budget Option Analysis Dep~ment Heads
Strate~ 7.2 Review Ente~dse Rate Study
Strate~ 1.5 Capital ~provement Proem Dep~ment Heads
Justin
Strate~ 5.3 Update Risk Management Policy
Strate~ 7.1 Adjust User Fees Depmment Heads
Chaska Police Department
Date of Issue
June 1, 1993 General Order 11
Effective Date Annual Review Date Subject
Dec. 1,2002 JANUARY ORGANIZATION
PURPOSE
The purpose of this order is to outline the primary objectives
of the various police positions, the major areas of
accountability, and the responsibilities for the work of others.
POLICY
Each officer will be familiar with his basic job description and
is encouraged to fulfill the outlined duties, as well as others
that may be promulgated by proper authority.
11.1
Organizational Structure
11.1.10rqanizational Chart
Chief of Police
i I
Detective Sergeant Administrative
Assistant
I I
I J_ J I J_
Resource Supervisor Secretaries
Officer(s)
I I
Patrol Sergeant H Executive Officer
Patrol Officers
Co~munity Events
Detective(s)
Investigations
Community Service Officer(s)