HomeMy WebLinkAbout2008-03-05 PACKET 08.A.REQUEST OF CITY COUNCIL ACTION COUNCIL
MEETING
DATE 3/5/08
PREPARED BY: Administration
ORIGINATING DEPARTMENT
AGENDA
ITEM # � �'
Ryan Schroeder
STAFFAUTHOR
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COUNCIL ACTION REQUEST:
Consider setting a Council Goals Workshop session.
STAFF RECOMMENDATION:
Set a Council Goals Workshop session.
SUPPORTING DOCUMENTS:
❑ MEMO/LEl
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Attachments.
ADMINISTRATORS COMMENTS:
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�ministrator
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COUNCIL ACTION TAKEN: ��APPROVED ❑ DENIED ❑ OTHER
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Document2
Budget Transmittal
The following is the Council Adopted Budget for the municipal operations during the
2008 fiscai year. The document inclndes ali major operating Yunds cf the City. As it.
past years, the document is presented as one of the planning tools of the City Council
from which to make policy decisions throughout the year. It is intended to procide far
amendment, from time to time, as situations arise necessitating such. This budget, along
with the Capital Improvements program provides staff with an appropriate level of
direction to carry out community and Council wishes throughout the year.
The Council, and city staff, deliberated carefully in arriving at the adoption of this
budget. The journey between departmental and Councii budget requests and initiatives,
and the actual adopted financial plan included myriad challenges. For 2008 the largest
challenge is reaction to a declining housing muket impacting not only housing slarts but
market value growth going forward. In deliberating over budget allocations Council was
cognizant of the projection that market value growth is anticipated to experience perhaps
a net zero percent growdt in both 2008 and 2009 impacting 2009 and ZOl 0 budgets and
operations. This financial plan prepares for that possible eventuality.
At the same time �ve strive toward continual improvement in the products and szrvices
we deliver to the public and how to provide those deliverables in a more cost
effective/efficient manner today than yesterday. Toward that end, of primary importance
is continual re-esamination of priorities going forward.
Our Vision
In 200� the City Council provided a future vision which determined a direction for the
organization:
• a walkable commuuity with an appreciation for our trees, hills, ravines and
landscapes including quality park, green and open space areas
• a good place to raise a family and grow a business with well maintained
neighborhoods and private properties
• a fiscaliy responsible, well run goveriunent with well maintained infrastructure
and saie residential aud commercial neighbarhoods and public places
Our Mission
Our mission communicates what we do and for whom:
• Provide excellence in the delivery of public services to curnmuniiy residents,
businesses, and owners of property
Our 2007-2008 Strategic Goals
In 7anuary, 2007 the City Council provided strategic goals in furtherance of the vision
and mission in the following areas:
• Go�ernance
• Fiscal S1aUility
• Commercial and Industrial Development
• Transportation and Transit
e Housing Developmeut
• Public Facilities
Budgetary Objectives
Toward accomplislunent of Council directed goais staff has created objectives:
• Governance
o Provide performance measures and benchmarks to which the organizatiou
can measure attainment
o Provide processes fi�om which the organization can set direction
� During 2007 we completed the 2007-12 Strategic Plan update for
the Economic Development Authority. Included was an
operational analy�sis of the River Oaks municipal golf operations.
We also provided our first puUlishable organization wide Annual
Report. Also completed was our tirst staffing/operational analysis
within which we compared spending and staffing levels to peer
communities. We also re-inh�oduced Performance Vleasures as
part of the 2008 budgeting process and adopted the 2008-20] 2
Capital Improvements plan and a concurrent capital outlay plan
within the budget revie�v process. �ach of these reporting
measurables will be updated again for 2008. Parly in 2008 the
Council �vill receive ihe results of a comprehensive random sample
community opinion survey which will be compared abainst the
Council set strategic direction and initiatives.
• Fiscal Stability
o Provide for continued moderalion of the taK levy rate in comparison to
peer communities
o Provide for moderation of future operating cost increases belo�v our
funding ability
o Provide for maintenance of sound tiscal policies
• The Cottage Grove local tax rate is comparatively high relative to a
selected peer group of 35 metro area communities above 20,000 in
population. That relaiive positiouin; is created in large part due to
a moderate local ta� base. This tax base has been growing on a
percentage basis beyond the mean of this peer group. Even so, in
order to approacl� the directive fuh�re operating cost increases must
be closely monitored. We will ensure that spending levels are less
thau those of peer communities in response to market value
comparisons. That, plus attention to fund balance and bond rating
growth opportuuities are of utmost importance. Planning for
impacts of moderating market value growth the City implemented
an early retirement program in 3007. The result provides potential
for 2009 general fund operationa] savin�s of $256,000.
Commercial and Industrial llevelopment
o Provide for continued development of the industrial park
c Provide for continued redevelopment of tl�e Gate��ay District
o Provide for planning to enhance development potential of th�
CottageView and infill sites
Efforts to expand the industrial park and commercial
redevelopment opportunities have been successful with creation of
in excess of $61 million in ta�able market value growth due to City
initiatives since 1999. Additional industrial growth opportunities
e�ist with iufrastructure in and available within the industrial park.
Two quadrants of the Gateway district are (re) developed with the
third underway. Plam�ing for redevelopment or rehabilitation of
the fourth quadrant will be pursued within an intermediate
timeframe. The East Ravine planning study, completed in 2006
provides impetus to pursue development in the
Jamaica/CottageView district anchored in the Future by a master
plaimed 80 acre 600,000 square foot retail center at County Road
19 and Highway 61.
Transportation and Transit
o Provide continued support of the Wakota Bridge, Red Rock Rail, and
High Speed Rail initiatives
o Pruvide for third party funding of eommunity infrastructure
c Provide for planning and construction activities of local roadway
inCrastructure
Ffforts to push for completion of the Wakota Bridge project,
commenced in 2003 must continue. Current state transportation
goals are to substantially complete this project in 2010. 'I'he region
has realized successfull implementation of the Hiawatha LRT line
and funding for the NorthStar Corridor CRT line in the northwest
portion of the metro. Legislative attention appears on the
Minneapolis to St. Paul Central Corridor which is an integral piece
of the eventual northeasterly Rush Corridor or the southeasterly
Red Rock Corridor through Cottage Grove. Legislative efforts are
also underway to eapand Illinois and Wisconsin efforts for high
speed rail, one corridor of which could be on the Red I2ock route.
During 2007 the City completed the $41 million reconstruction of
the Jamaica/TH 61 interchange ramps and roadway connections
with the first state sponsored two-lane double roundabout. For
2008 the City is continuing its 1994 initiative to reconstruct or
reclaim roadway surfaces throughout the communily over a fifty
year timeframe with this next segment (Ideal / Immanuel)
projected at a cost of $8.6 million. During 2008 the City
anticipates completion of the SF. Area Transportation Study which
plans Puture infrastructure enhancements related to the CR19/TH61
interchange.
Hoc�si;�g De��elopment
o Provide for seniar housing development
o Provide fur targeted high end development in the East Ravine and West
Draw portions of the community
� The City has long sought a mniti-family senior housin� product.
In 3006/7 two projects have bcen approved and are under
construction. Included is the 142 unit Norris Square project (with
market rate, assisted and memory care units) in the southwest
quadrant of the Gateway aloi7g with a=t1 unit assisted living phase
of the two phase White Pines project in the northeast quadrant of
this district Continued opportunity exists for single level active
senior housing product. Cottage Grove currently has a sinele
family housing market value average of $335,000 which is below
that of most peer communities. Focus, therefore, is on move-up
second aild third tier housing buyers as we complete build-out of
the West Draw and as we move into the 4,000 acre East Ravine
District. Infrastructure was constructed in the 800 acre lipper
Ravine sub-district in 2007 with model homes in the first
subdivision e�pected in 200A.
• Public Facilities
o Provide for expansion of the Ice Arena and plamiin� for maintenance
and/or e�pansion of other municipal buildings
o I'rovide for construction, maintenance and repair of parks and community
spaces
o Procide proactive growth and maintenance of municipal utility systems
• In 2005 the City identified a need to begin planning for future
Yacilities in both the public safety and general government areas.
In the 2006. ?00'7. and 3008 budget allocations are provided to
prepare for this future project. This project is anticipated to be
constructed on a future segment of the Ra��ine Parkway at County
Road 19 and 8�`�' Street just north of the Washington County South
Service Center. It is anticipated that construction would be beyond
the 2012 timeframe.
■ In 3007 the City initiated a$6.6 million expansion of lhe Cottage
Grove Ice Arena with construction beginning early in 2008 with
projeci completion by October 1. Agreements are in place with
our partner organizations, School District 833 and the Cottage
Grove Athletic Association both of which have conmiitted to
provide annual infusions into the operation through purchase of ice
time.
a An increasing emphasis has been placed on both park development
and storm water projects. During 2007 we were able to leverage
both priority areas by creation oY storm water improvements within
the Pine Tree Valley and Hamlet Parks. These infrastructure
projects provided far federal and state mandated water quality and
quantity improvements while at ihe same time prodiding amenities
for the user of the park system and adjacent residential properties.
Future similar projects are anticipated. As a browing community
we continually plan for gro�vth of our water distribution system.
During 2008 we anticipate working closely with the ?vlinnesota
Department of Health ou future system capacity and quality
enhancement.
'_OUS Stralegc Plan
2008 Budget Transmittal
Introduction
Budget Trends
Since 1999 general fund operating budgets have increased an average of 4.7%. This level of
budgetary increase generaily reflects costs due to growth along with infiationary increases. The
2008 budget has been restricted to an increase less than past years due to a lower pace of
housing growth experienced during 2007 than in past years. The 2007 development pace is
expected to be replicated to at least some extent in near term periods which is also expected to
restrict spending within the 2009 budget as weil. For 2008 the growth in the General Fund
budget is effectively flat at a 0.5% increase. Between 1999 and 2008 average annual
percentage budget increases for all cost centers in General Government is 3.46%. The same
measure in Public Works is 3.82% and in Public Safety the average increase per year is 4.60%.
The total average annual budget increase from 1999 through 2008 for operating budgets is
4.0%
General Fund Expenditure Trends (amounts in 1000's)
Adopted Budget History
BUDGET YEARS
Budget Area
Admmistration / Finance
Legal / Assessing
City Hall /Special Programs
Community Development
Police
Fve
Public Works
Parks & Recreation
Other General Government
Household Growth
1999
943
265
291
465
3,107
729
1,680
995
380
8,855
2000
949
303
292
491
3,254
776
1,725
1,035
466
9,290
2001
978
280
340
549
3,485
808
1 777
1,010
425
9,652
Rate of Inflation Fill IN
Total HH+Inflation
2002
1,051
265
329
598
3,680
717
1.890
1,119
611
10,259
2003
1,053
295
326
631
3,847
678
7,980
1,241
690
10,741
2004
1,079
293
401
638
3,973
778
1.957
1,190
763
11, 072
2005 2006 2007
1,OS6 1,186 1,175
305 300 312
313 304 277
669 749 837
4,340 4,658 4,712
841 847 918
2,329 2.137 2,244
1,353 1,373 1,48�
678 563 560
11,914 12,117 12,522
One year mcrease »
Avg.incr.
over 10
2008 years
1,255 3.7%
302 l 6%
271 -0 8 %
841 9.0%
4,871 6.3%
866 2.1%
2.254 3.8%
1,435 49%
492 3.3%
12,587 4.7%
0 52%
In a comparison of expenses to peer Twin Cities area communities existing data suggests that
Cottage Grove operational expenditures are lower than aIi but a few comparison cities. In 2005
State Auditor data (the most recent year available) Cottage Grove is reported as the third lowest
spending of 35 cities ranging in population from 19,000 to 61,000. We were 20` lowest in
Pubiic Safety, the ""'°"""""'° and ranked as the lowest of peer communities in
generai government spending. These same relative spending rankings are anticipated to be
replicated in budget years 2006 and beyond including the 2008 budget year with the potential
for improvement in ranking in the pubiic safety area. This change is due to the consolidation of
records and communications with Washington County and the resulting operational savings.
� 35 City Comparison I Rank (out City
� of35) Grove
I General Government ��p. Per Capita 35 $56
� Public Safety Esp. Per Capita 30 �149
I Public Works Eap. Per Capita $89
�, Park R Recreation Per Capita 23 �60
� Housine & Economic Devzlopmzni 10 $46
� Total 33 5399
of Cottage I Average City
$l10
$161
5337
$74
$56
$638
In 1994, the City began an initiative to repair and/or replace its entire local roadway
infrastructure through a scheduled pavement management (reconstruction) program. Since
then, over $25 million has been spent on this effort. In order to provide for funding capacity for
this ongoing program and other capital infrastructure needs growth in operating lines has been
and wiil continue to be restricted. We would anticipate relative departmental spending targets
going forward within the lowest quartile of peer communities.
Tax Levy
The property tax levy for the 2008 budget year totals $12.2 miilion, approximately 3% higher
than 2007. This levy increase is lower than the past severai years and reflects a conservative
approach with limited budget growth for the coming year. A conservative approach is being
taken because of the downturn in the metropolitan economy restrained budget growth to protect
against creating unbalanced future budgets. The 2008 levy includes $1.6 million towards debt
service including nearly $1.4 miilion for the support of the pavement management program.
Over the past ten years the dollar increase in the tax levy has averaged between 6% and 7%
annualiy except for the 2002 budget year. The growth in the property tax Ievy has foilowed
growth plus inflation over recent years. The larger increase in the 2002 budget year resulted
from the elimination of approximately $1.4 million in state aid in the Homestead Credit and
Agriculturai Aid (HACA) program.
$ia,000 .
$12,000
$10,000
58.000
$6,000
$4,000
82 000
$-
Propety Tax Levy (in
720/-
100%
8 0"/0 ---
60% ---�
40%0 -
^
20%
�
00%
Percent increase in levy
. V uch of increase due to
,i ehmmanon of Stalc A�d
__ .. _— _
g� � Homes[ead Credri
I,pNan Debt LeVy,�]DebtLeVy� 7999 2000 2001 2�02 2003 2004 2005 2�06 2007 2008
i
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Property Tax Rafes
The tax rate for the City will decrease for taxes payable in 2008. The projected 2008 tax rate is
35.5% which compares to the 2007 rate of 36.2% and the 2006 rate of 37.9%. The tax
extension rate has been in general decline (aka improvement) since the high year of 2002 which
was created by an elimination in state funded property tax support to many cities including
Cottage Grove in that same year in addition to significant changes in the State Classification
system that took effect in 2002.
These tax rate improvements have resulted from taxable market value growth and creation of
new taxabie properties (tax capacity growth) beyond spending increases of the City.
Tax Extension Rates
50 I
0 45 , HACA CW�
� 40 � _—_ \
� 35 p
� 29 6
�^ 30 � 26 5 277 27 �
U
O
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43 �
i= �.
392 379
362 35 5
20 �
rn rn O o 0 0 0 0 0 0 0
rn rn o 0 0 0 0 0 0 0 0
N N N N N N N N N
Taxes Payable
Estimated Market Value vs Net Tax
Capacity (in 1000's)
I „ 3,500,000
, � s,000,000
� 2,50Q000
�p 3 Z,���,Q��
� j 1,500,000
I � 1,000,000
W 500, 000
35, 000
30, 000
25, 000
2�,���
15, 000
10, 000
5, 000
Y
u
R
a
R
U
R
H
d
Z
_ i i i _
6)O�NMd'lnGOi�CO
� O O O O O O O O O
� N N N N N N N N N
—�--Estimated MarketValue —v—NetTaxCapacity I
In comparison to other metro area communities the local Cottage Grove tax rate has
consistently resided above mean levels. This is due in large part to taxable tax capacities below
those of peer communities. A challenge of the City Council over the past decade has been to
improve our relative tax capacity position. While improvement has occurred within this measure
significant improvement continues as necessary to achieve property tax wealth at mean levels
m
� 2007 Tax Rate Comparison - Selected Metro Area Cities
0 60
.
� 50 —
W 40 — _ � _ [l � n (� n �' �
� 30
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x
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Meap 33.20
%
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(6 T N G C C(6 N� C(6 >. C N N N� N'O (6 2 N N N T C- N N 3 '� �,
� Y N C>, Q W V/ (6 fA N C N N� p�> Y � O C� O�(6 m.� �>(6 Q.N (n � N�
pom�mY a�o Z a o ��o
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a mU � � � am.� o tA .c
¢ i 5 ���g z a ��� ��
, � Metro Cities —2007 Mean '
of the metro area.
Tax capacity Comparison
The City af Cottage Grove higher than average tax rate correlates directly to the City's lower
than average tax capacity per capita. At $776 of Taxable Tax Capacity per capita in 2006,
Cottage Grove ranks 28`" of 36 for the group of inetro area comparison cities. This lower tax
capacity per capita means it requires a higher levy rate for Cottage Grove to raise the same
level of tax revenue compared to peer cities. For example, on average, Cottage Grove raised
$281 per capita based on our tax rate (36.19% x 776 =$281), while Rosevilie, for example,
raised the same $281 per capita at a lesser levy rate due to greater property tax wealth (23.01 %
x 1221 =$281). Roseville is able to do this with a significantly lower tax rate as they have a
much higher taxabie tax capacity per capita. It is this lower tax rate that results in lower taxes
paid by each property owner for similar valued property.
Tax Rate Companson Metro Cities 19,000 to 60,000 population
Rank City name
1 Edina
2 Eden Prairie
3 fWnnetonka
4 Golden Valley
5 Chanhassen
6 Roseville
7 Woodbury
8 Maple Grove
9 Shorev�ew
10 Shakopce
11 St Louis Park
12 Maple�wod
13 Roserrount
14 PriorLake
15 Lakeville
16 Appie Vailey
17 Inver Grove Heights
18 White Bear Lake
19 Savage
20 Lino Lakes
21 Fridley
22 Blaine
23 �kdale
24 Andover
25 Richtield
26 Hastings
27 New Brighton
2$ Coftdqe Ca�ove
29 New Hope
30 Ramsey
31 Champlin
32 Crystal
33 Chaska
34 South St Paul
35 Brooklyn Center
36 Arioka
2006
22.61
28.56
28.60
43.31
26.64
23.51
29.02
30.23
23.97
30.97
36.34
31.95
43.75
31.30
31.61
35.69
35.55
18.57
46.49
41.40
31.94
3123
32.01
31.56
3923
49.82
34.14
37.92
42.10
39.35
32.64
36.75
20.13
34.99
46.93
38.74
2007
21.15
28.05
28.42
41.29
23.80
23.01
28.10
32.89
23.30
31.94
34.74
31.95
42.52
28.43
31.58
34.89
36.51
17.71
50.16
39.00
31.35
29.66
29.10
31.00
35.78
49 24
33.02
36.19
42.10
3922
32 45
37.17
19.82
34.14
48.07
37.33
F� iT. �, 3 L$ t�^- i d�Z ��:� l b17 �'.11 ETi 9
ta� cap per
cap
2,149
1,717
1,753
1,834
1,425
1,519
1,306
1,336
1,241
1,242
1,289
1,206
1,113
1,044
1,073
1,066
1,067
1,036
1,067
956
1,176
1,008
957
886
1,025
846
990
845
916
967
896
826
1,005
792
843
844
taxabie tax Generated
cap percap
1,831
1,488
1,481
1,425
1,299
1,221
1,206
1,160
1,087
1,0�8
1,059
1,048
1,014
1,006
970
941
930
926
923
885
882
855
824
798
796
782
782
776
775
737
730
725
699
682
655
635
percap.
$ 387
S 417
$ 421
S 588
$ 309
$ 281
$ 339
$ 381
$ 253
$ 344
$ 368
$ 335
$ 431
$ 286
$ 306
$ 328
$ 340
$ 164
$ 463
$ 345
$ 277
$ 254
3 240
5 247
$ 285
$ 385
$ 258
$ 289
$ 326
$ 289
$ 23�
$ 269
S 138
$ 233
$ 315
$ 237
The 2007 Cottage Grove tax rate had
dropped to 12` high among peer
communities. It is anticipated that the
2008 tax rate will be at or below that
relative ranking.
It is anticipated that only tax capacity
growth beyond the metro mean will
provide the opportunity for further
improvement in tax rate and ranking over
succeeding near term budget periods.
Cottage Grove -
Ranking of Tax Capacity Extension Rate -
Metro Area Comparison Cities
iE9
73
9 9 4
1�17
>>
�z
10 q q 9
8
e� ��' a o° o'` oti o`� o°` o`' o`O o�
,�� ,�� ,�o ti o , � , ti o ti o ti o ,
2008 Budget Initiatives
1. Capita! Improvements
During 2008 it is anticipated that we will continue to effect infrastructure and facility
improvements. It is currently programmed to enter another pavement reconstruction project.
For 2008 the pavement management district includes the area generally bounded by 80`" Street
to 70` and from Ninton Avenue to just west of Jamaica in an area with pavement condition
ratings between 30 and 59 on a 100 point scale.
In this same year we intend to expand the Cottage Grove Ice Arena by a second fuli sheet with
construction completed by fall. Recent programming for a Public Safety/City Hall project is
expected to be delayed due to uncertainty created by the housing market declines,
implementation of space planning within current facilities, and projections of other budgetary
requirements.
Storm water improvements have been a top priority in the past few years. However, for 2008
we anticipate closing out ongoing projects without initiation of additional large scale projects
during the budget year. The same holds true for park projects with the possible exception of
Camel's Hump construction (scenic overlook project) which would be completed concurrent with
the adjacent subdivision which provides access to this important park, geologic and historic
resource. Another potential 2008 project would be the completion of the Hamlet Park
reconstruction shouid funding become available.
During 2007 we are compieting infrastructure improvements to provide the opportunity for
subdivision construction in the Upper Ravine Neighborhood of the East Ravine Development
District. It is anticipated that subdivision infrastructure construction will foilow. We expect to
complete planning the future redevelopment of the County Road 19 and Highway 61
lnterchange by early in 2008 but we are not anticipating near term construction absent receipt of
third party (federai and/or state) funding.
Replacement of capital equipment (primarily rolling stock) is delayed beyond 2008 but for
equipment of absolute necessity in an effort to extend one more year of life beyond scheduled
replacements. At the same time, however, the budget allocates $400,000 toward the equipment
replacement fund in case of mid year equipment failure. Absent this circumstance this
allocation will be made available for 2009 purchasing.
Long anticipated enhancements in 800 MHz public safety communications systems wili occur in
2008. Funding has been made available from 2007 budget allocations, receipt of grant funds
and a small 2008 budget allocation.
Third party decisions are impacting the 2008 budget. Included is the requirement to complete a
Comprehensive Plan update ($135,000 in 2008 included in all budgeted operating funds) as
well as a state requirement to contribute a greater contribution toward the Public Employees
Retirement Association $51,��0 in 2008. In addition, we are budgeting for a$21,000 increase
within fuel budgets for 2008, or approximately 5.5%.
Financial Summary
1. GF Revenue and Expenditures
Revenues:
Generai property taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Interest Revenue
Miscellaneous
Subtotal before transfers
Transfers In
Total revenues
Expenditures:
Employee Services
Supplies
Contractural Services
Capital Outlay
Misceilaneous
Subtotal before transfers
Transfers Out
Total expenditures
2008
Budget
$9,620,000
695,325
506,950
1,201, 050
226.000
297,000
41, 250
12,587,575
12, 587, 575
7, 975, 950
1, 016,250
2,612,370
491, 200
24,765
12,120, 535
467,040
12,587,575
2007
Budget
$9,175,050
9 , 266, 650
497,200
1,148,600
211, 000
175, 000
48, 800
12,522,300
12, 522, 300
7,711,100
986,220
2,547,200
707,550
59,690
12, 011, 760
510,540
12,522,300
%
Change
4.85%
-45.11 %
1.96%
4.57%
7.11%
69]1%
-15.47%
0.52%
0.52%
3.43%
3.04%
2.56%
-30.58%
-58.51 %
0.91 %
-8.52%
0.52%
Revenues over (under) expenditures
2. Enterprise Fund Revenues and Expenses
In total, 2008 budgeted enterprise funds show an increase in ooerating income of 14.4%
over 2007. The increase in revenues results from increases to the water rates,
approximately 3%, and sewer rates, approximately 8%, for 2008. These rate increases
were needed to cover increased expenses related to deprecation on contributed assets
over time. These assets are those installed by developers and turned over to the City.
Much of the increase in enterprise fund operating expenses can be attributed to
increases in charges by the Metropolitan Councii for wastewater treatment, increased
costs in items for resale in the River Oaks Golf operations, and the addition of a new
program in the ambulance service to develop a part-time paramedic core to address
scheduling difficulties.
Water Sewer Street Lights Golf
Operating
Revenues $ 2,140,000 $ 2,181,000 $
Expenses 1,424,850 1,950,500
Operating Income 715,150 230.500
652,700 5 1,697,200
490,000 7,547,460
162,700 149,740
Interest Revenue 90,000 185,000 79,000 -
Transfers/other 291,200 (71,700) (9.000) -
Depreaation (795,900) (389,000) (114,400) (162,900)
Debt Service (97,200) - - (100,040)
Net income Qoss) $ 203250 $ 74,800 S 718,300 $(113200)
Cottage Totai Totai percent
Grove EMS 2008 Budget 2007 Budget Change
$ 1,122,600 S 7,793,500 S 7,432900 49%
1,061,550 6,474,360 6,279,915 31°/
61,050 1,319,140 1,152,985 74.4%
3,700
(46,100)
$ 18.650 $
354,000 305,000 16 1 %
274,200 270,100 1 5 %
(1,508,300) (1,321,600) 14.1°/a
(197,240) (220,000) -10 3°/
241.800 S '186,485 29 7 %
3. Fund Balances
One of the goals of the City Council is to ensure that resources are maintained to
adequately provide for cash flow reserves and to finance contingencies. In 2003, the
City Council amended the City's Fund Balance Policy for the General Fund to
provide for cash flow requirements, emergency and contingency needs, liabilities for
compensated absences as well as specific programs for the subsequent year.
The policy calis for cash flow designations equal to 50% of the following year's
property tax levy, and state aids. The emergency and contingency needs portion of
fund balance is equal to 10% of the following years budgeted expenditures.
Designations are aiso made in an amount equai to the earned but unused
compensated absences at year end. in addition to these designations at year end
the City Council may designate fund balance for specific purposes to be completed
in the following year.
The trend in the General Fund — Fund Balance over the past five year period has
consistently been over 60%, signifying a healthy fund balance and the ability to fund
the elements in the policy without drawing on reserves.
70%
Fund Balance as % of Budgeted Expenditures
. .............;
60% ... ,,.,. W ,,,.,,.,_ ......... ......W
50%
2004 2005 2006 2007 2008
At the end of each calendar year, and once each of the above designations is met,
the excess is transferred to other funds as directed by the fund balance policy. The
amounts in excess of the designations are transferred to the Outstanding Debt
Reduction Fund (35%), the Equipment Replacement Fund (25°/o), the Building
Replacement Fund (15%), the Future Pavement Management Fund (10°Jo) and a
portion is allocated to budget carryovers (15%). Over the past five years the
approximately $3.1 million has been transferred out of the Generai Fund and is
designated for these specific purposes.
Cumulative designations:
Outstanding Debt 1,279,295
Equipment Replacement 913,782
Building Construction 548,269
Future Pavement Management 365,514
3,106, 860
The total balances in budgeted funds and/or net assets at the end of 2006 (the most
recent audited balance) was approximately $�2 miilion. The net assets for the
enterprise fund do not represent avaiiabie/spendabie resources but rather represents
the historical asset value (historical cost) less associated liabilities.
Fund Name
Generai
Special Revenue
Equipment Replacemen
Seal Coating Fund
Recycling
Gambling
Community Watch
Forfeiture
Ice Arena
EDA
Future Econ Developme
Enterprise
Water Operating
Sewer Operating
Street Light
Storm Water
Golf Course
Cottage Grove EMS
Internal Service
Selflnsurance
Fieet Maintenance
FUND BAIANCE SCHEDULE
2007 2008 Budqet
2005 2006 Estimated 2008 2008 Estimated
Ending Ending Ending Budget Budget Ending
Balance Balance Balance Revenue* Expenditures*` Balance
7,636,361 7,851,581 7,851,581 12,587,575 12,587,575 7,851,581
1,643,359
0
70,020
7,582
0
45,156
193,185
1,305,868
2,013,671
2,233,921
0
73,356
11,427
0
71,126
243,115
1,436, 860
2,660,680
2,310,921
(20,000)
73,456
11,427
0
8,126
356,115
1,798,960
2,300,680
500,000
405,000
51.550
12,000
7,040
42,600
547,215
176,000
115,700
25,987,592 27,453,138 27,544,338 2,521,200
18,868,675 20,216,177 20,227,427 2,383,500
5,102,551 5,405,300 5,505,400 731,700
358,395 194,102 310,195 806,462
624,661 591,798 516,538 1,697,200
547,167 565,048 624,243 1,174,900
1,780,792 1,806,397 1,781,89] 1,283,200
1,247.571 1,259,310 1,268,510 1,001.300
67,459,702 72,088J48 7'L,46y,814 26,044,142
129,000
462,400
51,450
12,000
7,040
136,237
542,800
175,300
430,000
2,462,950
2,374,400
632,800
703,250
2,250,900
1,135,450
1,279,600
995,000
'26,368,152
'Budget revenues includes transfers in.
**Budget expenditures includes transfers out, enterprise capital outlay, and enterprise principal.
4. Debt
As of December 31, 2007 the City of Cottage Grove has approximately $20 million in
outstanding debt resulting in $589 in outstanding debt per capita.
Special Assessment Debt (Tax Supported)
Speaal Assessment Debt (Developer Initiated Projects)
Capdal Improvement Bonds
Tax Increment Finanang Bonds
Water Revenue Bonds
River Oaks Revenue Bonds
Balance Principal Due Interest Due
12/31/2007 in 2008 in 2008
$ 12,450,000 $ 920,000 S 470,661
410,000 410.000 5,125
495,000 240,000 11,250
3,490,000 275,000 165,055
1,885,000 145,000 95,439
1,425,000 330,000 37,240
$ 20.155,000 $ 2,320,000 $ 784,770
2,681,921
(77,400)
73,556
11,427
0
(85,511)
360,530
1,799,660
1,986,380
27,747,588
20,242,227
5,623,700
413,407
403,338
691,493
1, 785,497
1,274.810
71.784,104
The outstanding debt grew from 1994 until 2003 when it peeked at $33.4 million or
approximately $1,061 per capita. In 1994, the City began its Pavement Management Program
to aggressively address aging streets. In 2003 and 2004, the City completed the largest phase
of this program and incurred $7.8 million in outstanding debt. In 2008, the City will be moving
into another phase of the program and may incur up to $6 million in special assessment debt. If
$6 million in debt is issued along with the 2008 scheduled principal payments the debt per
capita would climb to approximately $690/capita the same as 2006 levels but still significantiy
below the peek year of 2004 at $1,061 per capita. The totai outstanding debt (including all
sources of repayment) has been reduced significantly over the past few years by a change in
the way developer installed utilities are financed. Over the past few years the financing was
done through an inter-fund loan instead of issuing bonded debt. We were finding that the
subdivisions were built, houses sold and special assessment repayments received prior to the
final bond payment debt. In the future we may need to again look to financing developer
instalied utilities with bonded debt as full build out of subdivisions is bec�ming protracted with
the siow down in the housing market.
Total Outstanding Debt! Per Capita
i
5i 200
$1 C00 - - -- -- ---
I 3800 -- — ---
$600 �' �
s<oo ' � � I. � ;
Szoa
so
Total Outstantling Debt
340,600,600
§35,000,000
y30,000,000 - - A
525,000,000 i ,. � -
$20,000.000 +-- - p�F'�;� - - �-�,
$15,00�000 � - - =-
s�o,000.000 � �-�- '-
ss,000 000 ' z - -
so
!oTOtal OuistarC�rg DeCUPerCa�:a
__ __ I
m����� m��� 8 8 8 8 3 8 8 8 8
�- �- N N N N N N N N N
�SpecialASSessmentDebt ■StatefutlDebt
�9PropnetaryFUntlDebt �TaxlncremenlDebt
■ CapRal �ease Debt
Looking only at taxpayer supported debt (debt that is partially supported by a property tax levy)
the total outstanding debt at 12-31-2007 was approximately $12.9 million. The tax supported
debt includes the special assessment debt incurred for the pavement management projects
($12.4 million) and $495,000 for the remaining debt on the 2003 Capital Improvement Bonds.
The debt as of December 2007 equates to approximately $378 per capita. The debt to be
issued in 2008 for the Pavement Management Program is approximately $6 million and wili
increase the taxpayer supported debt. If $6 million in debt is issued along with the 2008
scheduled principal payments the debt per capita would climb to approximately $515. This
$515 is higher but still significantly lower than the peak per capita debt of $576 in 2002.
Tax Payer Supported DebVCapiW
s�oo ,
ssoo -�- - — -- ------
Ssoo ; --- - � - -- ---
', -
$aoo � I�
$300 I - c �,_�
$200 ; '
$1�0� =; �` _ — _ _ —
t997 1998 1999 2000 200t 2002 2003 2004 2005 200fi 2007 2008
o Taz Payer Supported DebtlCapi a
5. Financial Measures
o Current tax collections as % of levy
• GF Property taxes as % of GF revenues
. Health insurance as % of budgeted personal services
• PERA / FICA as % of budgeted personal services
• Interest earning as % of Portfolio
• Res % of tax base
. Commercial / Industrial % of tax base
.
6. Performance Measures
Included with the Budget document this year is a section titled "Performance Measures" that can
found on Page _
The report is intended to be informational. Our goal is to provide the City Council and staff with
independent, impartial assessments of past performance to strengthen public accountability,
improve government efficiency, and support future decision making.
The pages are oriented to allow us to accommodate the most data with the inclusion of
schematic graphs. The graphs are intended to help show the trend of data over a period of
time, and the time frame for most measures is from 1997 to 2006, with a target year in 2007.
The five program areas of focus are City Council, Administration, Public Works, Public Safety,
and Community Development.
Performance Measures provides a more meaningful guage of a departmenYs activities. Most
notabie in this regard are the various Public Works programs. Due to the Performance
Measures being a new project for the City, historical data is not available for many of these
measurables. In the long run, however, we believe we will be able to monitor the activities in ali
areas.
This document is to affirm the value of developing leading indicators in order to take corrective
action and to document the performance dividend from professional measurement. In sum,
performance management is a fundamental practice of a professionally managed community.
We hope that users of the budget document find this information of value in looking for ways to
improve city performance.
Staffing
The 2008 budget does not propose any enhancements within full-time regular staffing
complements. We have provided for a budget allocation which will allow for consideration of a
casual paramedic program within the EMS system and we are providing a minor enhancement
within part time community service officer staffing. Further, the 2008 budget absorbs full year
costs for positions that were added in 2007. At the same time we are proposing attritioning
positions during 2008 with implementation of early retirement programming.
Staffing levels at Cottage Grove have experienced growth over the past ten years in response
to household and population growth. That growth has been entirely within public works, public
safety, and goif course areas (absent communications center staffing reductions due to
consolidation with the County) as general government staffing continues at the same levels as
existed in 1997.
This year the Personnel Aliocation table has been updated to include the City's part-time hourly
employees. These part-time hourly employees' actual hours from 1998 through 2006 have
been conve!ted to FTE's. The 2QQ7/200$ FTE's are based on each departmenYs budget
request for hourly/seasonal employees. The inciusion of these employees has increased the
amount of FTE's by 27.42.
From 1998 to 2008 the amount of FTE's increased by 34.67, which was Iargely due to the
number of part-time hourly employees. Public Safety increased 11.61 FTE, which mostly
consists of Fire and EMS part-time employee hours. Public Works increased by 12.07 FTE's.
This increase is from the addition of regular FTE's and the additional part-time hourly
empioyees. Finally, the Goif Course increased by 10.43 FTE's, which was in large part due to
the opening of the clubhouse in 2000.
General Government
Pubiic Safety
Public Works
Golf
1998 1999 2000 2001
23.45 2112 2124 21.71
59.46 66.41 70.51 73 49
50.82 5440 55.�8 56.16
1139 16.63 22.80 23.76
145.12 158.56 169 73 175 11
2002 2003 2004 2005 2006 2007 2008
21.62 22.02 22 09 22 58 23 56 24.02 24.02
73 45 69 94 69 77 72.51 73 56 69.78 71 07
58 93 56.39 56 86 58.60 60 44 63 04 62.89
27 30 27 19 24 50 2"1.89 19.78 21 82 21.82
181 30 175.54 173.22 175.58 177.34 178 65 179.80
# FTE added from 1998 to 2008
Generai Government 0.56
Pubiic Safety 11.61
Pubiic Works 12.07
Golf 10.43
34.67
In comparison to peer metro area communities Cottage Grove staffing levels should be viewed
as moderate. Our comparison to these cities does not include our part-time houriy employees
(nor those within the comparison group of cities). in totai our 2007 Fuil time staffing is at 3.67
employees per 1000 residents. This compares to a mean of 4.10 in that year for peer
communities. It is anticipated that our relative staffing leveis will decline over time through
ongoing implementation of technological and production efficiencies.
2007 Staffing Comparison
Most staff, does not inciude golf, assessing, legal, etc.
Population* Name # of Staff StafflPopulation
(thousands)
66,709
24,927
51,722
54,020
24,071
58,420
48,988
21,395
19,698
33,179
22,595
21,749
60, 955
33, 882
19,418
24,662
51,657
20.747
54,091
71,048
22,113
29,335
61,262
47,448
36,279
28,137
20, 078
21,489
44,380
20,510
6671 Eagan
24.93 White Bear Lake
5172 �akeville
54.02 Blaine
24.07 Champlin
58.42 Maple Grove
48.99 Apple Valley
21.40 Prior Lake
1970 Lino Lakes
33.18 Cottage Grove
22.60 Crystal
2175 Ramsey
60.96 Eden Prairie
33.88 Roseviile
19.42 Rosemount
24 66 Savage
51.66 Minnetonka
20.75 New Hope
54.09 Woodbury
71.05 Brooklyn Park
22.11 New Brighton
29.34 Shakopee
61.26 Burnsviile
47.45 Edina
36.28 Maplewood
28.14 Brooklyn Center
20.08 South St Paul
21.49 Hastings
44.38 St Louis Park
20.51 Goiden Vailey
181.0
81.0
168.6
177.0
80.0
203.0
176.0
78.0
72.8
121.9
87.5
85.3
244.5
137.8
82.5
105.3
220.8
89.0
232.3
306.5
95 7
132 3
277.4
215.0
166 0
133 0
98 0
109 5
231 0
107.4
average
2.71
3.25
3.26
328
3.32
3.47
3.59
3.65
3.69
3.67
3.87
3.92
4.01
4.07
4.25
4.27
427
429
4.30
4.31
4.33
4.51
4.53
4.53
4.58
4.73
4.88
5.09
5.21
5.24
Notes of Appreciation
4.10
2008 Budget Transmittal
Memo To: Mayor and City Council
From: Ryan R. Schroeder
Subj.: 2008 Goals
Date: March 4, 2008
�� U""'_
���
� �
V —
On your agenda for March 5, 2008 is an item requesting a date for a goa! setting
session. Attached is a draft of the transmittal letter for the 2008 budget which includes
some goals discussion as well as background information on items of note relating to
the budget and financial position. Enclosed is a reformatting of a portion of that material
which is limited to just the goals. Included is:
1. Existing 2007 Council Goals
2. 2007/8 Goals and Objectives portion of the 2008 Budget Transmittal
3. 2007/8 Goals with status updates for each goal
If Council provides for a goal setting workshop staff would be interested in receiving
feedback on the foilowing issue areas:
1. 2009 Budget and Levy:
The goai for the 2008 budget was to provide a tax levy that resulted in roughly a
$0 dollar tax increase for a typicai homeowner. Additionally, Council was keenly
aware of the relationship of the local tax levy in Cottage Grove relative to that of
peer communities. There was a desire to improve our relative ranking in levy
rate comparisons with a resulting levy below 36%. We were able to accompiish
all three. For 2009 Council should note that both the Governor and the
Legislature are talking about Levy Limits as well as reductions in LGA and MVHC
two of which could impact Cottage Grove going forward. Staff aiso is currently
projecting 0% taxable market value appreciation for taxes payable 2009 (we will
have a better handie on this topic latter in the year). The question remains,
however, as to what our budget goals should be for 2009
2. Fund Balance Policy:
Since 2003 we have followed a Council policy to designate year end excess
revenues/expenditure savings to specified funds. The initiative was an attempt to
build up fund reserves in areas where current reserves were insufficient
projecting out future needs and to also proactively address debt and future debt.
Fund designations are currently as follows:
Debt Reduction Fund: 35%
Equipment Replacement Fund: 25%
Memo To: Mayor and City Council
From: Ryan R. Schroeder
Subj.: 2008 Goals
Date: March 4, 2008
On your agenda for March 5, 2008 is an item requesting a date for a goal setting
session. Attached is a draft of the transmittal letter for the 2008 budget which includes
some goals discussion as well as background information on items of note relating to
the budget and financial position. Enclosed is a reformatting af a portion of that material
which is limited to just the goals. Included is:
1. Existing 2007 Council Goals
2. 2007/8 Goals and Objectives portion of the 2008 Budget Transmittal
3. 2007/8 Goais with status updates for each goal
If Council provides for a goal setting workshop staff would be interested in receiving
feedback on the following issue areas:
1. 2009 Budget and Levy:
The goal for the 2008 budget was to provide a tax levy that resuited in roughly a
$0 doilar tax increase for a typical homeowner. Additionaily, Council was keenly
aware of the relationship of the local tax levy in Cottage Grove relative to that of
peer communities. There was a desire to improve our relative ranking in levy
rate comparisons with a resulting levy below 36%. We were abie to accomplish
all three. For 2009 Council should note that both the Governor and the
Legislature are taiking about Levy Limits as well as reductions in LGA and MVHC
two of which could impact Cottage Grove going forward. Staff also is currently
projecting 0% taxabie market value appreciation for taxes payable 2009 (we will
have a better handle on this topic latter in the year). The question remains,
however, as to what our budget goals should be for 2009
2. Fund Balance Policy:
Since 2003 we have followed a Council policy to designate year end excess
revenues/expenditure savings to specified funds. The initiative was an attempt to
build up fund reserves in areas where current reserves were insufficient
projecting out future needs and to aiso proactively address debt and future debt.
Fund designations are currentiy as follows:
Debt Reduction Fund: 35%
Equipment Repiacement Fund: 25%
Building Replacement Fund: 15%
Future Pavement Management Projects: 15%
Budget Carryovers ( Uncompleted Projects: 15%
Over the past five years the first four of these funds have received $3,106,860 in
yearend cash transfers as follows:
Debt Reduction Fund: $1,279,295
Equipment Replacement Fund: 5913,782
Building Replacement Fund: $548,269
Future Pavement Management: �365,514
Continuance of this policy is recommended. The policy has ailowed the City to
create solvency in the equipment fund (at one point it had a negative cash
balance) and to accumulate seed capital for future building projects. It has also
improved our flexibility in debt issuance (we most often fund short term or lower
cost projects internally so we do not have the expense of going out to market),
and improve our standing with the debt rating agencies (rating has improved to
AA3). However, being five years oid it makes sense to check in as to if there is a
desire to maintain or amend the policy (current policy amended a 1999 policy
which designated fund balance for general fund cash flow needs as at present
(60%} but had not designated further).
3. Levy practice to create fund reserves
Our practice the past few years has been to levy for future buildings and future
pavement management. The intent is to reduce the amount of debt that wili need
to be issued forfuture projects (City Hall/Pubiic Safety Building and future
roadway improvement projects). For the pavement projects cities often use a
similar mechanism (referred to as a Public Improvement Revolving Fund, PIR) to
accumulate cash to allow them to pay cash for roadway projects rather than to
issue debt. Often with a PIR fund debt is issued to accumulate the cash. We
have been doing so on a cash basis, accumulating funds through the levy rather
than paying issuance and interest expense of a bond issue. We recommend
continuance of the practice so long as we have budget ability to do so.
4. City Hallt Public Safety Building
The City undertook a Space Needs Study for general government and public
safety needs in 2006 (6121/06 workshop direction). An outcome of that study
was inclusion of a potential $12.6 million project in the 2007-11 CIP in 2010. In
reaction to current economic conditions the 2008-12 CIP projects a�15 miliion
project "post plan" meaning beyond 2012. The rationale is that with slow growth
both our needs for expansion and our ability to provide funding has changed from
2006 assumptions. It is also notable that as the 2006 study was concluding the
City migrated the PS communications center to Washington County. Also,
technology enhancements and shifts ir duties have al{ow�d far siafiFirg
reductions in both generai government and public safety, further reducing the
immediacy of need for a facility. In the space needs study we had projected
2040 public safety back office staffing at 25 positions. This likely will be reduced
to 12 to 14 positions given migration of the communications responsibilities. We
have realized current year reductions in staffing compliment in both general
government and public safety areas totaling 4 positions in addition to loss of the
7 communications positions authorized in 2006.
Council has provided funding for remodeling projects in City Hail improving
current space utilization. All told, we have picked up 1032 square feet of space
(150 SF reception desk converted to conference space, 532 SF Dispatch room
converted to Sergeants offices, and 350 SF former Administrative conference
room converted to PD investigator offices}. We aiso converted 800 SF of former
Recreation offices (that had relocated to the Ice Arena) to conference and
community development space.
As a resuit of staffing reductions and City Hall remodeling it wouid appear that we
have increased capacity at City Hali by perhaps six years or longer (growth
dependent). it would seem that proceeding toward a City Hall/PS project would
not be prudent ahead of stabilization of markets and the economy. Staff,
however, is interested in receiving feedback on Council commitment to a future
project and potential schedule.
5. Development issues
My characterization of the past ten years relative to economic and community
development goes something like this:
10 years hence: Any development is good development
5 years hence: Development Enhancements
Current year: Pursuit of specific end uses
Over this past ten years expectations have grown significantly. We are
interested in receiving Council commentary on how to go forward. Some of the
questions that perhaps can be addressed are:
A. What should Cottage Grove look like 10 or 20 years from now?
B. How shouid Cottage Grove attempt to distinguish itself from other developing
communities?
C. What are some of the larger changes that will shape the vision? (e.g.
environmentai sustainability, demographic changes, etc)
D. What kind of commercial and industrial development would we like to see,
$�i(: hOW �f�{lt fF18t ;elate ta timing expectatians of that developmer.f? (for
instance, attraction of a corporate campus would protract industrial
development much more than pursuing the current development pattern)
6. Park and Community Center
According to the DRL survey there would appear to be significant support for
continued efforts to improve the park system. There is also some level of
support for a community center project. DRL reported that there was perhaps tax
levy support of $25/householdlyear toward a community center. At 11,700
households at 5%/20 year that equates to about $3.3 million in capitai cost if one
assumes a community center operation wouid break even (which does not seem
to be highly likely). Most recently Council discussion on the topic has suggested
support for a joint venture over a stand- alone project. The DRL response would
seem to favor that as well as there wouid not appear to be levy support sufficient
to cover the expense of a stand-alone project. Financial capacity, however, of
such a project would be highiy dependent upon Council response to the City Hall
project noted above and other economic and fiscal issues.
We are also continuing to attempt to put together something on a river access to
the Mississippi from the Grey Cloud Island. The Community Development
Director has a meeting set with the County Parks Director for mid March to
discuss moving this project forward. We aiso are closing on a$5,000 acquisition
of property on March 6 for property along the causeway to the isiand. The
question however is if Council supports continued efforts on Park System
improvement and what to do with the Community Center question.
7. Community Events, programs, and Communication
City staff and Council are invoived in a number of events and programs perhaps
outside of core functions. Inciuded are: National Night Out, the Holiday Train,
Strawberry Fest, Neighborhood Block parties and Neighborhood Watch, CG
Yauth Expo, McGruff home project, SRT(i.e. countywide SWAT), Drug Task
Force, School Resource O�cer, STOCK (DARE substitute}, Fire Explorers,
Arbor Day, PW and Fire Open houses as well as Clean up day/haz waste day,
Safety Camp and others. In total, a significant investment in staff time is
allocated toward these efforts.
At the same time we have been increasing our outreach efforts by hosting
neighborhood meetings prior and during development projects; have been
improving our web site and cable communications; now have monthly
newsietters supplemented 6y the Annual Report and periodic issue based fiyers.
We are requesting affirmation that we are to continue dedication of resources
toward these events and efforts or to amend the direction.
8. EMS Services
Councii has hosted workshops and held budget discussions the past tew years in
an effort to forge a direction with EMS services to achieve a break even
operating position. Within the 2008 budget we believe we have achieved a
balanced operating position. We have reached this point over the past few years
by closely watching expenses, but more importantly having reduced reliance on
the operating entity itself for total support of staffing resources (in other words the
general fund now supports more labor expenses than in the past). We believe
we are able to continue to operate in this fashion in the short term without relying
upon significant general fund infusions.
The EMS system in its current model requires recruitment of PD line personnel
with paramedic credentials or in the alternafive an ability to gain those credentials
within a short time period. Paramedic officers receive a 7% wage premium for
this specific certification and ongoing training. Is Council interested in
maintenance of this service or instead interested in consideration of aiternative
service delivery mode�s?
9. Councillnitiatives?
10. Reaffirmation of or amendment to Councii Goals
Council Action:
1. Set date, time and location for a goals workshop
2. Other direction as required in preparation for a workshop
2008 Councd goals 030408
,,� -_�_ .
. OTTAGE GROVE :, � ' f
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Governance
We will promote an enhanced sense of community pride, mutual trust, respect,
civility, and a safe and secure environment for the exchange of ideas and
collaborative diaiogue throughout the organization, with other governmental
agencies, and with the community.
Fiscal Stability
We will operate in a fscally responsible manner while emphasizing growth and
diversity of the tax base and high vaiue fo the ;axpayer and other community
s;akeholders.
'� Commerciai and industrial Development
` We will place emphasis on quality retail, restaurant, and industrial development.
�t�� ;
,^ Development enhancemen s within ail commercial districts will inciude the use of
i;�a:
t , j ��,,,, development controls, architectural standards and nigh quality site features.
�,,,;:„; Particular emphasis will be placed on :he Gateway North Redevelopment District,
Jamaica/Cottage View development, the Industrial Park induding creation of
;� ;'�`: corporate campus sites, and planning for high quality master pianned development in
the East Ravine. We will also propose a brownfield reclamation strategy.
Transportation and Transit
We will work with the County to schedule County Road 19 improvements inciuding
the Highway 61 interchange, and funding toward 65th, 70th Street and Jamaica
Avenue improvements. We will place a high priority on Red Rock Commuter Rail,
high speed rail ano express transit service, while we garner intergovernmental
funding toward the Highway 61 Gateway corridor ratural resource and bridge
enhancements.
Housing Development
We will ensure that implementation of the master plan for the East Ravine District
includes only high quality, high design and amenity development stressing the
natural environment complemented by the built environment. Emphasis will be
placed on diversity of housing styles targeting the second and third tier move-up
buyer. All future housing developments must reflect the community vision
established through the East Ravine planning process. Encourage the maintenance
of current housing stock through increased code enforcement efforts.
Public Facilities
We will provide a high level of maintenance and repair and quality of construction of
city facilities including municipal structures, parks and community spaces. induded
are the municipal utiiities including proactive implementation of storm water and
water system improvements. We will establish a vision and strategy for an ice arena
expansion, a future government center and/or community center, and a public
Mississippi River access.
>�r,:�;a,,,ti,,,�:';'i::...,,�, •
2007/8 Council Goals and Objectives
Our 2007-2008 Strategic Goals
In 7anuary, 2007 the Cit}� Cow�cil provided strategic goals in furtl�erance of the vision and
missio?Z in the follo�vine areas:
• Governance
• riscal Stabiliiy
• Commercial and Iildustrial Developmeilt
• Transportation and Transit
• Housing Development
• Public Pacilities
Budgetary Objectives
Toward accomplishment of Council directed goals staff has created oUjecti��es:
• Go��ernance
o Provide performance iiieasures and banchmarks to which the or�anization can
measm•e atiainment
o Provide processes from which the or�anization can set direction
Fiscal Stability
o Proeide for coutinued muderation of the tati levy rate in comparison to peer
communities
o Provide for moderation of future operatin� cost increases below our fundii�g
ability
o Provide for maintzuance of sound fiscal policies
Commercial and Industrial Development
o Provide for continued developinent oi the indusn�ial park
o Provide for continued redevelopment of the Gate�vay District
o Procide for plamiing to enhance development potential of the CottageVie«� and
iufill sites
Transportation and Transit
o Provide coutinued support of the Vdal:ota Bridge, Red Rock Rail, and High Speed
Rail initiatives
o Provide for third party funding of community infiastructure
o Provide for planning and construction activities of local roadway inTrasttucture
Housin� Development
o Proeid� for senior housin�.; develolnnent
c Provide for tar`eted high end deeelo}�ment in the East Ra�•iv� and West Dra�v
purtions of the communit�,�
• Public Facilities
o Pro��ide for expansion of the Tce Arena a�id plaiming for maintenance and/�r
e�pansion of other municipal buildin�s
o Provide for conshuction, maintenance and repair of parks and community spaces
c Provide proactive �rov,nh and inaintenance oL municipal utility s� stems
Status Update of 2007/8 Council Goals
Our 2007-2008 Strategic Goals
In January, 2007 the City Council pro� ided strategic goals in Purthera�ice of the vision
and mission in the follo�ving areas:
• Governance
• Fiscal Stability
• Commercial and Industrial Devzlopment
• Transportation and Transit
. Housing Development
• Public Faciliiies
Budgetary Objectives
To« ard accomplishment of Council directed goals staff has created objectives:
• Governance
o Pro��ide perforniance measures and benchmarks to which d7e oreanization
can measure attainment
o Procide processes fiom which the or�anization can set directioil
� During ?007 ���e completed the 3007-12 Strateaic Plan update for
the Ecoilomic Development Aufliorit}�. Included ��as an
operational anal��sis of the River Oaks muuicipal golf operations.
We also provided our first publishable organization �vide �nnual
Repori. Also completed was our first staffing/operational analysis
��=ithin whicl� �ve compared spending and staffing levels to peer
communities. We also re-introduced Performance 14easures as
part of the 3008 bud�etin� process and adopted the ?008-2012
Capital Improvements plan and a concurrent capital outlay plan
�vithin ihe budget re�-ie��� process. Each of these reporting
measurables �vili be updated a�ain for 3008. Early in 2008 the
Council �vill receive the results of a comprehensive random sample
community opinion sur� ey which will be compared a�ainst the
CoLUicil set strate;ic direciion and initiatives.
Fiscal Stability
c Pro��ide for contiilued moderation of the tallevy rate in comparison to
peer communities
o Provide for moderation of future operatiu� cost increases belo«� our
funding ability
o Pro� ide for maintenance of sound flscal policies
� The Cottage Grove loca] ta�: rate is comparaii��el�� hi�li relati��e to �
selected peer group of 3� metro :� connnunities aUove ?O,d00 in
population. That relative positioning is created in large part due to
a moderate local taa Uase. This ta� base has becn ��rov,�ing oi7 a
percenta�e basis beyoild the mea�l of this peer group. Lcen so, in
urder to approach the directive future operating cost increases must
be clusel}� monitored. R'e will ensure that spendiug levels are less
than those of peer communities in respouse to markei value
comparisons. That, plus atteution to fuild balance and bond rating
grow7h opportuniti�s are of utmost importance. Planning for
impacts of moderatine marl�et value gro�n�th the Cit}' im�lemented
an early retirement program in 2007. Tl�e result provides poteiuial
for 3009 �eneral fund operational savings of $356,000.
• Commercial and Industrial Development
o Provide for continued development of che industriai park
o Provide for continued redevelopment of the Gateway Districi
e Pro� ide for plam�ing to enliance development potential of tl�e
CottageVie�v and infill sites
■ Efforts to expand the industrial park and commercial
redevelopment opporiunities ha��e been successful �vith creation of
in e�cess of S61 million in taxable ma��ket calue gro��h due to City
initiatives since 1999. Additional industrial growth opportunities
e�ist �vith infrastructure in and available within the iildustrial park.
T�o�o quadrants of the Gatewa�� district are (m) developed �vith the
third under�vay. Plaiming for redevelopment or rehabilitatiou of
the fourth quadrant �vill be pursued within an intennediate
timeframe. 'I'he East Ra��ine plaiming stud��, completed in ''006
provides impetus to pursue development in the
Jamaica/CottageView district a�7chored in the future b} a master
planned 80 acre 600,000 square foot retail center at Countt� P�oad
l 9 and I3iehwav 6].
• Transportation and Transit
o Provide continued support of the V�'akota Bridge, Red Rock Rail, and
Hish Speed Rail initiatives
o Provide for third party funding of coinmunity infi�astructure
o Provide for plamiing and construction activities of local road��a}
infrasuucttu�e
■ Efforts to push for completion of the Wakota Bridge project.
commenced in �002 must contiuue. Current state transportation
goals are to substantiall}' complete this proiect in ?O] 0. The region
has realized successfull implementation of the Hiawatha LRT line
and funding for the ?�orthStar Corridor CRT line in tl�e northwest
por[ion of the meiro. Legislati� e attention appesrs on the
A1im7eapolis to Si. Paul Central Curridor which is an integral piece
of thz eventua] northeasterlv Rush Corridor or the southeasterl}�
Red Rock Corridor through Cotta��e Grove. Legislatiae efforts are
also miderway to espand Illinois vzd Wisconsin effarts for hi�h
speed rail, on� co�ridor of which cauld be on the Red Rock route.
Durin� 2007 the City completed the $4.1 million reconstruction of
the Jamaica/TH 61 interchanne ramps and roadwa}� comiections
with the first siate sponsored two-lane double roundabout. For
3008 the Cit} is continuing its 1944 initiative to reconsuuct or
reclaim roadway surfaces throu�hout the community oaer a f lty
year timefranie ���itl� this neat segment (Ideai / Immanuel)
projected at a cost of $8.6 million. During 3008 the City
anticipates completion of the SE Area Transpoi�tation Study �vhich
plans future infrastructure enhancements related to the CRI9ITH61
interchance.
• Housing Development
o Provide for senior Izousing development
o Providz for targeted high end de��elopment in the East Ravine and ��'est
Draw portions of the community
■ The City has long sought a multi-fan7ih� senior housiug product.
In 2006/7 two projects have been appro��ed and are mlder
construction. Included is the 143 unit Norris Squarz project («�ith
market rate, assisted and memory care wzits) in the southwest
quadrant of the Gateway alona �vith a-�1 uiiii assisied living pllase
of the two phase �'hite Piiles pr�ject in the northeast quadrant of
this district. Continued opportunit} e�ists for sin,le level active
senior housing product Cottage Grove cun�ently l�as a single
fainiiy housing market value average of $2: �,000 which is belo���
that of most peer communities. Focus, therefore, is on mo��e-up
second and third tier housing buyers as we complete build-out of
tIie u'est Draw and as we move into the 4,000 acre East Ravine
District. Infrastructw�e ��,�as constructed in the 800 acre Upper
Ravine sub-district in _'007 ���ith model homes in the first
subdicision c�:pected in 2008.
• Public Facilities
o Provide for e�pansion of the Ice Arena and plamiing for maintenance
andior e�pansion of other municipal buildings
o Provide ior construction, maintenance and repair of parks and community
spaces
c Proeide proacti�>e gro��nh and maintenanez of municipal utilit} s,ystems
• In ?00� the Cit}� identified a need to begin plamiiug for futlu�e
facilities in boili the puUlic safety aud genera] �overnment areas.
ln the 3006, 2U07. and 3008 budget allocatioils aze provided to
prepare for this future pr�ject. This project is anticipated to Ue
constructed ou a funu�e segment oFthe Ravine Parkway at County
Road 19 and 8�` Street just uonh ofthe Washin�ton County Soutl�
Sei Center. It is anticipated that canstructiori w�ould be be�•ond
ihe 30L timeframe.
Ii12007 the City initiated a$6.6 inillion e�pansion of the Cottage
Grove Ice ,Arena with construction begitmina early in 3008 with
project completion hy October 1. Agreements are in place with
our partner organizatians, 3ehool District 833 and tJie Cottage
Grove Athletic Assoeiation boih of ��hich have eommitted to
provide annua] infusions into d�e operation through purchase of ice
time.
An increasing emphasis has been placed on both park development
and stornl ���ater projects. During '?007 ���e were abie to lecerage
both priority areas by creation of storm water improvements �vithin
the Pine Tree Valley and I�an11et Parks. These infrastructiu�e
projects provided for federal and state mandated �vater qualitt� and
quantity improvements while at the same time providing amenities
for the user of the park system and adjaceilt residential properties.
Puture similar projects are ai�ticipated. As a gro«ing conununity
we coiltinually plan for growth of om� water dist�•ibution system.
During 2008 «�e anticipate workin� closely with the Minnesota
Department of Health on future system capacity and quality
enhauceuient.
'_��OR S[rate��c Pla�i