Loading...
A-2. Key Financial Strategy: Discuss Designation of KFS Cities0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections 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: 952.227.1120 Fax: 952.227.1110 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 Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Website www.ci.chanhassen.mn.us A -2 - MEMORANDUM TO: City Council FROM: Greg Sticha, Finance Director DATE: June 13, 2016 SUBJ: KFS Comparison Cities — Staff Recommendation Cities to Include BACKGROUND One of the City Council's KFS goals for 2016 is to examine the list of cities that we use for comparison purposes. In April, council directed staff to add a few more data sets to evaluate for inclusion into the list of "Key Financial Strategy" Cities. That updated list is attached. In addition, council directed staff to make a recommendation of any amendments to the current list of cities. After staff reviewed all data, there were two cities that appeared in staff's opinion to not be as comparable as two alternate cities. The cities of Andover and Farmington seemed to be much less comparable to the City of Chanhassen as Shakopee and Inver Grove Heights. In particular, the data on fiscal disparities, tax base, continued growth and potential for growth seemed to more mirror our statistics. While none of the cities have matching or similar data sets in a majority of categories analyzed, the cities of Inver Grove Heights and Shakopee seem to have more similar data than many. RECOMMENDATION Staff is recommending the amendment of the list of "KFS" cities to exclude Andover and Farmington and be replaced by Shakopee and Inver Grove Heights. If council has no objection to the amended list, staff will begin using the newly amended list in all future KFS evaluations. ATTACHMENTS 1. Ehler's comparable city data. 2. Staff report from April 25, 2016 City Council Work Session Meeting. i\gregs\kfs\2016\update comparison cities - staff report 7-12-16.doc Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow = Existing KFS Cities = Suggested Sources: httD://auickfacts.census.gov/afd/states/27/2759998.hi http://www. metrocouncil.org httD://em m a.msrb.ore/Search/Search.asDx http:/Iwww.revenue.state.mn.us lwww.elkrivermn.gov Cities' Budget and CAFR documents * Full Time employees, No FTE information available FD Est. Est. %Growth Median Contribution FD Distribution FD Net Change CI Tax Base CI Tax Base w TIF Captured Total Tax Base Distribution Lew Households Population Population, Population, 2000- Developed % Developed Median Value Household Tax Base Per Annual GF Budget per CitV 2015 2015 2015 2014/15 Cl % FD 2014/15 2014/15 2015 2014 2014 2010 2000 2010 Acreage 2010 Acreage 2010 2010 Housin Income Ca ita Bond Rating FTE Budget capita Chanhassen 3,563,523 1,666,901 -1,896,622 9,738,828 23% 7,842,206 267,750 42,766,594 453,940 8,936 24,503 22,952 20,321 13% 14,581 8,855 61% 335,000 107,849 1,745 AAA 72.1 10,486,000 428 998,391 4,257,801 3,259,410 2,674,524 10% 5,933,934 210,936 25,718,861 1,846,295 10,273 31,874 30,598 26,588 15% 22,292 9,586 43% 234,700 93,314 807 AA+ 57.5 10,697,788 336 Anoka 1,732,122 3,066,144 1,334,022 5,119,779 37% 6,453,801 2,684,374 13,730,769 1,528,259 7,252 17,586 17,142 18,076 -5% 4,559 3,847 84% 166,800 47,408 781 Aa2 105.33 13,205,895 751 Champlin 1,218,486 3,390,214 2,171,728 3,387,802 18% 5,559,530 285,094 18,330,966 1,518,918 8,426 22,880 23,089 22,193 4% 5,602 4,730 84% 198,500 86,788 801 AA+ 78.76 11,360,039 497 2,660,165 2,956,199 296,034 7,734,696 29% 8,030,730 535,840 26,578,072 781,494 9,278 25,270 23,770 17,603 35% 14,581 8,855 61% 228,200 76,301 1,052 AA 186.4 14,074,193 557 2,016,931 4,915,251 2,898,320 5,711,150 19% 8,609,470 661,743 29,861,553 2,146,936 11,869 35,250 34,589 30,582 13% 11,382 6,603 58% 204,600 82,485 847 AA+ 190.86 15,870,120 450 East Bethel 342,523 1,719,767 1,377,244 905,722 11% 2,282,966 46,859 8,232,747 1,014,371 4,055 11,591 11,626 10,941 6% 30,517 10,441 34% 204,600 87,441 710 AA 24.66 4,975,900 429 7,876,075 37%- 198,997 21,426,935- 8,122 23,746 22,974 16,447 40% 24,703 204,000 74,772 902 AA+ 147.15 13,884,800 585 1,002,736 3,397,197 2,394,461 2,670,503 17% 5,064,964 113,361 16,048,537 2,237,937 7,557 22,386 21,086 12,365 71% 9,489 3,969 42% 200,300 87,653 717 AA- 84.9 11,798,225 527 Forest Lake 1,799,219 2,213,852 414,633 4,635,904 24% 5,050,537 705,249 19,710,579 988,562 7,441 19,484 18,377 14,440 27% 22,712 6,818 30% 230,800 71,995 1,012 AA+ 57 9,059,426 465 Ham Lake 937,084 1,811,314 874,230 2,364,714 16% 3,238,944 0 15,082,536 537,761 5,329 15,666 15,296 12,710 20% 22,888 7,737 34% 258,700 89,949 963 Aa2 18.2 5,174,700 330 Hastings 1,526,218 3,629,720 2,103,502 4,148,453 24% 6,251,955 34,299 17,020,559 2,404,544 8,792 22,492 22,172 18,204 22% 7,657 4,826 63% 175,200 64,119 757 AA 112 10,469,837 465 Hugo 968,878 1,450,891 482,013 2,516,091 16% 2,998,104 81,927 15,644,229 518,463 5,308 14,201 13,332 6,363 110% 22,036 5,212 24% 224,100 81,773 1,102 AA+ 25.52 4,845,427 341 Inver Grove Heights 3,757,226 4,114,828 357,602 9,783,985 27% 10,141,587 1,915,055 35,633,743 1,919,284 13,823 34,831 33,880 29,751 14% 19,204 9,854 51% 205,100 64,635 1,023 AA 120 19,705,900 566 1,072,911 2,639,444 1,566,533 2,882,283 16% 4,448,816 236,625 18,356,479 1,232,171 6,374 21,129 20,216 16,791 20% 21,261 9,472 45% 257,600 103,407 869 AA 66.5 9,876,494 467 Mendota Heights 2,483,310 774,156 -1,709,154 6,636,290 32% 4,927,136 0 20,882,937 268,921 4,450 11,124 11,071 11,434 -3% 6,427 5,396 84% 342,500 98,098 1,877 AAA 45* 7,418,444 667 Oakdale 3,353,624 3,962,768 609,144 8,807,515 34% 9,416,659 535,966 26,007,948 1,632,691 11,203 28,655 27,401 26,653 3% 7,238 5,510 76% 188,500 67,822 908 Aa2 100 11,791,195 411 1,027,204 2,234,467 1,207,263 2,850,224 10% 4,057,487 439,787 28,115,825 685,977 9,041 24,911 22,796 15,917 43% 11,725 5,882 50% 262,400 95,692 1,129 AA+ 84* 12,945,738 520 Ramsey 1,984,235 3,407,504 1,423,269 5,095,798 24% 6,519,067 601,505 21,229,541 1,507,378 8,500 24,811 23,668 18,510 28% 19,096 10,728 56% 202,300 83,115 856 AA+ 86.1 10,925,127 440 2,418,196 2,458,678 40,482 6,414,778 26% 6,455,260 701,865 24,528,036 1,172,199 7,852 22,490 21,874 14,619 50% 22,532 7,244 32% 233,700 86,845 1,091 Aa2 122* 11,835,528 526 2,927,299 3,240,592 313,293 8,366,970 27% 8,680,263 27,802 30,714,368 1,791,323 9,724 29,047 26,911 21,115 27% 10,496 7,083 67% 246,700 94,432 1,057 AA+ 152.6 13,768,216 474 Shakopee 6,698,876 4,630,858 -2,068,018 18,768,016 41% 16,699,998 543,818 45,825,330 1,918,874 13,455 39,523 37,076 20,568 80% 18,846 10,631 56% 210,700 79,670 1,159 Aal 145.25 24,927,023 631 Shoreview 2,613,794 2,576,603 -37,191 6,902,988 23% 6,865,797 920,544 30,246,699 965,979 10,783 25,723 25,043 25,924 -3% 8,100 6,591 81% 232,400 79,485 1,176 AAA 141.6 10,309,950 401 2,037,844 2,037,077 -767 5,374,951 25% 5,374,184 1,259,638 21,841,563 1,187,386 7,342 18,892 18,227 15,323 19% 5,116 4,013 78% 239,800 75,200 1,156 Aa2 96 9,880,459 523 Vadnais Heights 2,358,778 1,402,790 -955,988 6,477,182 40% 5,521,194 1,175,423 16,000,787 410,580 5,243 12,583 12,302 13,069 -6% 5,253 3,433 65% 205,000 73,208 1,272 B 29 5,701,140 453 Waconia 1,116,445 1,299,495 183,050 2,959,150 24% 3,142,200 145,744 12,312,850 642,252 4,267 11,520 10,697 6,814 57% 2,835 1,948 69% 233,700 78,086 1,069 AA 61 5,883,045 511 White Bear Lake 2,733,225 3,079,333 346,108 7,169,030 30% 7,515,138 561,985 23,932,870 649,812 10,172 24,159 23,797 24,325 -2% 5,478 4,825 88% 189,900 62,259 991 AA 104.71 8,957,718 371 White Bear Twp. 1,113,013 1,117,178 4,165 3,059,954 23% 3,064,119 677,620 13,290,483 268,283 4,310 11,072 10,949 11,293 -3% 7,030 4,050 58% 255,100 90,297 1,200 Aa2 21.3 3,724,485 336 = Existing KFS Cities = Suggested Sources: httD://auickfacts.census.gov/afd/states/27/2759998.hi http://www. metrocouncil.org httD://em m a.msrb.ore/Search/Search.asDx http:/Iwww.revenue.state.mn.us lwww.elkrivermn.gov Cities' Budget and CAFR documents * Full Time employees, No FTE information available Building Inspections BACKGROUND A b� Fax: 952.227.1190 One of the City Council's KFS goals for 2016 is to examine the list of cities that we Engineering use for comparison purposes. Phone: 952.227.1160 CITY OF MEMORANDUM CHMNSEN TO: Todd Gerhardt, City Manager 7700 Market Boulevard FROM: Greg Sticha, Finance Director 0K_ PO Box 147 Fax: 952.227.1110 land area was undeveloped, so understanding the capital and operating needs to Chanhassen, MN 55317 accommodate growth was critical. The city currently has about 35% of undeveloped Phone: 952.227.1120 land, and is also at a stage of development where we need to reinvest to maintain our DATE: April 25, 2016 Administration Administration Phone: 9 SUBJ: KFS Comparison Cities — Review of Criteria and Potential Cities to Fax: 952.227.1110 2310 Coulter Boulevard include Building Inspections BACKGROUND Phone: 952.227.1180 Fax: 952.227.1190 One of the City Council's KFS goals for 2016 is to examine the list of cities that we Engineering use for comparison purposes. Phone: 952.227.1160 Fax: 952.227.1170 The Key Financial Strategies process was initiated in 2002. The goal of the original plan and ensuing ongoing process is to give staff, City Council, and residents a Finance common understanding and vision for financial decisions that lie ahead for the Phone: 952.227.1140 community. In 2002, the City of Chanhassen recognized that just under half of its Fax: 952.227.1110 land area was undeveloped, so understanding the capital and operating needs to Park & Recreation accommodate growth was critical. The city currently has about 35% of undeveloped Phone: 952.227.1120 land, and is also at a stage of development where we need to reinvest to maintain our Fax: 952.227.1110 infrastructure. The financial plans that are updated each year, including the CIP, Pavement Management System, Utility Rate Study, and KFS Annual Goals, identify Recreation Center activities to prepare for maintenance and infrastructure reinvestment. 2310 Coulter Boulevard Phone: 952.227.1400 As part of the original process, staff worked with Ehlers, Inc. to identify a list of Fax: 952.227.1404 comparison cities to be used in establishing and examining benchmarks. Staff uses Planning & these comparison cities in a variety of situations, often to compare service levels Natural Resources and/or salariesibenefits. The comparison cities were chosen as a mix of cities that Phone: 952.227.1130 looked similar to Chanhassen in terms of demographics and available land for Fax: 952.227.1110 development/infrastructure needs. Some examples of when the KFS list has been used: comparing Salaries and other forms of compensation/staffing decisions, Public Works 7901 Park Place evaluating technology needs, budget and levy discussions, Utility Rate Study, Fire Phone: 952.227.1300 Department call data and related resource comparisons, evaluating ordinances, Fax: 952.227.1310 comparison of various city fees and permits charged, evaluation of all public safety resources, and evaluation of performance measures from all the various departments. Senior Center Phone: 952.227.1125 In 2012, the City Council reviewed the original list of KFS cities and finalized the Fax: 952.227.1110 current list as below: Website www.ci.chanhassen.mn.us Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Todd Gerhardt, City Manager KFS Comparison Cities April 25, 2016 Page 2 • Andover (31,874) • Chanhassen (24,503) • Cottage Grove (35,250) • Chaska (25,270) • Farmington (22,386) • Rosemount (22,490) • Lino Lakes (21,129) • Stillwater (18,892) • Prior Lake (24,911) • Savage (29,047) • Elk River (23,739) Staff worked with Ehlers to examine the continued validity of these communities as comparisons. In previous year's comparisons, staff has limited inclusion of cities only in population size of 10,000-40,000 and without an urban designation. Because of the continual growing size of our city, staff is looking for feedback from city council on the possibility of inclusion of larger suburbs that provide similar services and also have similar demographics to our community. We will be distributing two lists (with many different data comparisons) of cities at this evening's meeting: one will be the familiar list of communities near our population size, the other will be suburban communities slightly larger than us. We will discuss the pros and cons of including or excluding both groups for consideration into our KFS cities group. ACTION Staff is not looking for a final recommendation of cities to use for our KFS cities group at this evening's meeting. However, we are looking for direction on the types of cities to consider for inclusion in this year's evaluation process. After receiving the feedback, staff will meet and discuss a list of staff- recommended KFS cities for the city council to consider at a meeting in May or June. f.\gregs\kfs\2016\update comparison cities - staff report 4-25-16.doc