B. Review 2013 Key Financial Strategies201J7(' f
ESTABLISH ANNUAL GOALS & KEY
FINANCIAL STRATEGIES
Background. In July 2002, staff met with Jim Prosser from Ehlers & Associates to begin
development of the city's key financial strategies. At that time, comparisons were
completed of similar cities based on tax base mix, growth, allocation, population, five -year
budget comparison, debt ratios, tax capacity, and bond ratings. Council and staff identified
Financial Foundation Descriptions and prioritized capital improvements. The City Council
adopted the Key Financial Strategies on June 9, 2003. Implementation began with the 2004
budget process, i.e. pavement management system including trails, roads, parking lots; debt
service; fixed assets for remodeling /replacement; water treatment and future infrastructure;
etc. These strategies will also be used as a part of our 2014 strategic planning process.
In 2012, the City Council reviewed all of the comparable cities and made modifications to the
list. The ten cities selected were: Andover, Chaska, Cottage Grove, Elk River, Farmington,
Lino Lakes, Prior Lake, Rosemount, Savage and Stillwater.
Update: The City Council and staff reviewed and modified the 2013 Key Financial
Strategies on January 5, 2013, which included the following:
1. Review 2012 Key Financial Strategies.
2. Discussed strategies that were completed, needed more information, and those
that are on- going.
3. Discussed the City Council's and staff's proposed 2013 Strategies.
4. The City Council approved the 2013 Strategies at their February 11, 2013 meeting
(see Attachment ##1).
Competitiveness
ENGAGE IN "NAVIGATING THE NEW NORMAL"
JOINT STRATEGIC SESSION WITH THE CITY COUNCIL, PLANNING COMMISSION, AND STAFF
FACILITATED BY GORDON HUGHES
On April 2, 2013, the City Council, Planning Commission, and staff engaged in a strategic
tabletop discussion with the ULI Group. The discussion centered on Chanhassen's strengths
and demographic trends that will affect the city in coming years.
KEY STRENGTHS THAT MAKE CHANHASSEN DESIRABLE
Two excellent school districts
Healthy tax base -80% Residential / 20% Office, Industrial and Commercial
* Strong market acceptance. The city is viewed positively in the Twin Cities market
Dedication to long -term planning by elected and appointed officials
Financial
Land Use
Infrastructure
Organizationally (Police, Fire, MIS, etc.)
Strong demographics and market
KEY OBSERVATIONS FOR THE FUTURE CHANHASSEN
Private developments are having difficulty finding private capital and the city should be
open to collaborative efforts to achieve community goals.
Clear and consistent vision that is expressed and supported by both the City Council and
staff.
Good community engagement; specifically during the planning and policy development
stage and less at the project approval stage.
Attached are the ULI panel's observations and ideas for review (Attachment #2).
INNOVATION EFFORTS
WHAT CAN WE DO TO BETTER CURRENT SERVICES
Listed below are some innovative ideas that have been tracked over the past year that either
saved the city money or made staff's job more efficient:
* The city is evaluating the use of 12 different styles of LED lights along Coulter
Boulevard to determine if all street lights in the city should be replaced. The price of
LED lights has come down substantially and other agencies making the replacements
have realized a 3 -year payback. These lights last approximately 20 years. Staff hopes to
complete the analysis within the next six months.
Khanna Group is using Chanhassen as a pilot project for their data analysis services.
They are looking at the various escrow accounts the city collects and how they can be
integrated into the Springbrook software for better management. Their services are
being provided at no cost to the city.
Electronic City Council and commission packets are now being created through a
module on our website rather than through the Laserfiche Agenda Manager software.
This will save the city $ 3,000 in license fees beginning in 2014 and is much easier for
the public to navigate to the information on the website. Additionally, staff now
receives electronic packets instead of paper copies.
Online forms were developed for commission applications and temporary sign permits.
This provides great customer service for our residents and contractors. The
Development Review Application form is in the process of going online and additional
forms will be developed as time permits. E- payment options are also being explored.
The building department is now using a module of the Springbrook software to issue
building permits instead of PermitWorks. This new module automatically integrates
with the Finance Department's cash receipts software.
Electronic time cards were introduced to the finance, administration, and engineering
departments in 2013. It is our goal to eventually have all departments on this system.
Electronic submittals save paper, allows staff to look up their own vacation and sick
accruals and request time off without assistance from the Finance Department.
New radio read water meters were installed throughout the city in 2013. For the most
part, this eliminated the need for the utility department to drive the city to retrieve
meter readings and from doing final meter readings when someone moves. It also
improved our customer service as we now have the capability of providing daily
readings when customers call concerning higher than normal water consumption.
Eventually our customers will be able to look up this information from their computer.
'' I
The city participated in a pilot study by the Minnesota Department of Health
concerning the delivery of the Water Confidence Report. In previous years, the city
was required to develop, print and mail the report to all water customers. Over the last
two years, we were able to send a postcard to our customers informing them that the
report was available on our website or at city hall. This saved staff time and printing
costs from years prior. In 2014, an ad will be placed in the Chanhassen Connection
directing interested parties to the website and no direct mailing will be done.
Apple TV was installed in the fountain conference room, which allows for more
utilization of iPads.
ENGAGE THE COMMUNITY IN CITY GOVERNMENT
Staff reaches out and engages the community every day. This is accomplished by making it
easier for the public to participate in programs and events, reaching out to neighborhoods in
their own backyards, and through our improved website and social media like Facebook and
Twitter. Some measurable results are as follows:
Twitter: The city joined Twitter on May 7 and we have 178 followers.
Facebook: The city has 1,602 page likes. On average, 1,400 people see our posts each week.
Between 25 and 100 people are engaged in each post.
Website: On average, 50% find the city's website through a Google search, 20% directly, and
the rest through miscellaneous search engines. The keywords most often searched to reach the
city's site are: City of Chanhassen, Chan Rec Center, Chanhassen Fourth of July, Coyotes, and
Lake Ann. Below are the web statistics through September of this year:
WEBSITE STATISTICS THROUGH SEPTEMBER 2013
MONTH
PAGES PER VIEW
VISITS
PAGE VIEWS
January
2.42
16,543
39,827
February
2.48
13,698
33,998
March
2.71
13,574
36,720
April
2.71
15,250
41.313
May
2.42
16,221
39,335
June
2.39
17,312
41,347
July
2.20
21,001
46,723
August
2.48
14,291
35,399
September
2.55
12,828
32,675
4]
STRENGTHEN THE CITY'S
FINANCIAL POSITION
RECEIVE INFORMATION ON THE OTHER "NEW NORMAL"
UNDERSTAND HOW HEALTHCARE, FEDERAL TAX CHANGES, ETC. IMPACT THE CITY
The complexities of the Federal Healthcare Reform, or Patient Protection and Affordable Care
Act ( PPACA) can be confusing and complex. At the July 15, 2013 work session, Laurie did a
great job providing an overview of where Chanhassen is classified and policy changes that need
to occur. They are as follows:
The city's current plan meets the requirements outlined in the law.
It is classified as "affordable" and meets the minimum essential value coverage
requirement.
* The city is considered a large employer (50+ full time employees);
Those eligible for healthcare coverage will change from 32 hours per week to 30 hours
per week. This change will not increase the number of employees eligible for
healthcare benefits.
Based on current conditions, our healthcare benefit broker recommends that the city
continue its current insurance programs.
The City expects to see a 5% increase in health insurance rates due to PPACA for 2014.
Some cities will see at least 15% to 20% increases in premiums due to the new taxes
and fees.
Planning for the City's Infrastructure
REVIEW SNOW AND ICE POLICY FOR STREETS AND TRAILS
At the February 11 and July 22 meetings, the City Council discussed benchmarks and policies
for snowplowing our streets, trails, and ice rinks. The city is responsible for snow and ice
control on 110 miles of streets, 90 miles of trails, 10 miles of sidewalks, 8 skating /hockey
rinks, and 21 public parking lots.
The following is a comparison of 2011 -12 vs. 2012 -13:
SNOWPLOWING PARKS & STREETS
TYPE
YEAR
No. OF
EVENTS
TOTAL
HOURS
LABOR
COSTS
FUEL
COSTS
SALT &
SAND
TOTAL
COST
AVERAGE
PER
EVENT
Parks
2011 -12
25
513.50
$17,564.00
$1,958.64
$19,522.64
$780.91
Parks
2012 -13
43
1,175.00
$38,290.09
$4,414.98
$42,705.07
$993.14
Streets
2011 -12
25
1,059.50
$35,419.56
$11,035.52
$56,995.85
$103,450.93
$4,138.04
Streets
2012 -13
1 43
2,484.50
$84,447.23
$25,767.86
I $46,010.94
$156,226.03
$3,633.16
Enhance Local Tax Base
REVIEW AND EVALUATE CONCEPT PUD PROCESS
The City Council reviewed the Planned Unit Development (PUD) process at their April 8,
2013 work session. Staff presented the update as a follow -up to the City Council's amendment
of the PUD ordinance in 2012. The changes related to the concept review process, and
eliminated implied development approval at the concept stage and any Findings of Fact
requirements. The benefits of the code amendment are:
The Planning Commission continues to gather public comment without requiring a
formal Findings of Fact;
* The developer is not required to prepare costly detailed plans for consideration and
therefore the city may feel less obligated to grant approval;
09 There is no legal binding obligation by either party without a Findings of Fact;
The developer receives input and direction on the proposed project before deciding
whether or not to proceed; and
The Planning Commission prefers the less formal process and feels freer to discuss
issues/ alternatives.
4,' : i E -.
R1 -- ...- _- ___.__ g'
The Chanhassen Apartment Complex was the first project to go through the new Concept PUD process.