HomeMy WebLinkAbout2008-03-12 PACKET 01.A.�
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 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 following issue areas:
1. 2009 Budget and Levy:
The goal for the 2008 budget was to provide a tax levy that resulted in roughly a
$0 dollar tax increase for a typical homeowner. Additionaliy, 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 accomplish
all three. For 2009 Council should note that both the Governor and the
Legislature are talking about �evy Limits as well as reductions in �GA and MVHC
two of which could impact Cottage Grove going forward. Staff also is currently
projecting 0°/o taxable 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 poiicy 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%
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: $913,782
Building Replacement Fund: $548,269
Future Pavement Management: $365,514
Continuance of this policy is recommended. The policy has allowed 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 old 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 will need
to be issued for future projects (City Hall/Public Safety Building and future
roadway improvement projects). For the pavement projects cities often use a
similar mecnanism (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 fiunds 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 Hall/ Public Safety Building
The City undertook a Space Needs Study for general government and public
safety needs in 2006 (6/21/06 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 million
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. lt is also notable that as the 2006 study was concluding the
City migrated the PS communications center to Washington County. Aiso,
t2chnology enhancements and �hift� in dutes have allowed for staffing
reductions in both general 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 responsibiiities. We
have realized current year reductions in staffing compliment in both general
government and public safety areas totaiing 4 positions in addition to loss of the
7 communications positions authorized in 2006.
Council has provided funding for remodeling projects in City Hall improving
current space utilization. AII 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 also converted 800 SF of former
Recreation offices (that had relocated to the Ice Arena) to conference and
community development space.
As a result of staffing reductions and City Hall remodeling it would appear that we
have increased capacity at City Hall 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 developrr5ent is good develapment
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 should 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.
environmental sustainability, demographic changes, etc)
D. What kind of commercial and industrial development would we like to see,
and how might that relata to timing expectations of that development? (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 DR� 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/household/year toward a community center. At 11,700
households at 5%/20 year that equates to about $3.3 miilion in capital cost if one
assumes a community center operation would break even (which does not seem
to be highly Iikely). 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 would 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 highly 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 also are closing on a$5,000 acquisition
of property on March 6 for property aiong the causeway to the island. 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 sfiaif and Council are invoived in a number of events and programs perhaps
outside of core functions. Included are: National Night Out, the Holiday Train,
Strawberry Fest, Neighborhood Block parties and Neighborhood Watch, CG
Youth Expo, McGruff home project, SRT(i.e. countywide SWAT), Drug Task
Force, School Resource Officer, 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
newsletters suppfementzd by the Annual Report and periodic issu@ based flyers.
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 few 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 alternative 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 alternative
service delivery models?
9. Councillnitiatives?
10. Reaffirmation of or amendment to Council Goals
Council Action:
1. Set d�fie, fime �nd Ioc��ion #or a goals workshop
2. Other direction as required in preparation for a workshop
2008 Counal goals 030408
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Governance
We wili promote an enhanced sense of community pride, mutuai trust, respect,
civility, and a safe and secure environment for the exchange of ideas and
collaborative dialogue throughout the organization, with other governmental
agencies, and with the community.
Fisca( Stability
We will operate in a fiscally responsible manner while emphasizing growth and
diversity of the tax base and high value to the taxpayer and other community
stakeholders.
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,..�:�,. Commercial and Industrial Development
N���?�,w We wiil place emphasis on quality retail, restaurant, and industrial development.
�"; ?,"• Development enhancements within all commercial districts will include the use of
deveiopment controls, architectural standards and high quality site features.
' ParticWar emphasis will be placed on the Gateway North Redevelopment District,
Jamaica/Cottage View development, the Industrial Park including creation of
corporate campus sites, and planning for high quality master planned 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 including
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 and express transit service, while we garner intergovernmental
funding toward the Highway 61 Gateway corridor natural resource and bridge
enhancements.
Housing Development
We wiii ensure that implementation of the master plan for the East Ravine District
includes oniy high quality, high design and amenity development stressing the
natural environment complemented by the built environment. �mphasis 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 pianning process. Encourage the maintenance
of current housing stock through increased code enforcement efforts.
Pubiic 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. Included
are the municipal utilities including proactive implementation of storm water and
water system improvements. We wiii establish a vision and strategy for an ice arena
expa�sion, a future government center and/or community center, and a public
Mississippi River access.
2007/8 Council Goals and Objectives
Our 2007-2008 Strategic Goals
In January, ?007 the City Council provided strategic goals in furtherance of the vision and
mission in the follawing areas:
• Governauce
• Fiscal Stabilit}�
• Commercial and Industrial Development
• Transportation and Transit
o Housing Development
• Public Facilitics
Budgetary Objectives
Toward accomplishment of Council directed goals staff has created objectives:
• Governance
o Provide performance measures and benchmarks to which the organization can
ineasure attainment
o Provide processes from which the organization can set direction
• Fiscal Stabilitv
o Provide for continued moderation of the tax levy rate in comparison to peer
communities
o Provide for moderation of future operating cost increases below our funding
aUility
o Provide for maintenance of sound fiscal policies
• Commercial and Industrial Development
o Provide for continued development of the industrial park
o Provide for continued redevelopment of the Gateway District
o Provide for planning to enhance development potential of the CottageView and
infill sites
• Transportation and Transit
o Provide continued support of the Wakota Bridge, Red Rock Rail, and High Specd
Rail initiatives
o Provide for third party funding of comrnunity infrastructure
o Provide for planning and constructiou activities of local roadway infrastructure
Housing Development
c Provide for senior housing development
o Provide for targeted high eud developmeni in the East Ravine and West Draw
portions of the communiry
• Public Facilities
o Provide for espansion of the Ice Areua and planning far maintenance and/or
expansion of other municipal buildings
o Provide for construction, maintenance and repair of parks and community spaces
o Provide proactive growth and maintenance of municipal utility systems
Status Update of 2007/8 Councii Goals
Our 200'7-2008 Strategic Goals
In January, 2007 the City Council provided strategic goals in furtherance of the vision
and mission in the follo�ving areas:
• Governance
• Fiscal Stability
• Commercial and Industrial Development
• Transportation and Transit
• Housing Development
• Public Facilities
Budgetary Objectives
Toward accomplishment of Council directed goals staff has created objectives:
• Governance
o Provide performance measures and benchmarks to which the organization
can measure attainment
Provide processes froin �vhich the organization can set direction
• During 2007 we completed the 200"7-12 Strategic Plan update for
the Econoinic Developrnent Authority. Included was an
operational analysis of the River Oaks municipa] golf operations.
We also provided our first publishable organization wide Annual
Report. Also completed was our first staftingloperational analysis
within which we compared spending and stafflng levels to peer
communities. We also re-introduced Performance Measures as
part of the 2008 budgeting process and adopted the 2008-2012
Capital Improvements plau and a concurrent capital outlay plan
within the budget review process. Each of dlese reporting
measurables will be updated again For 2008. Early in 2008 the
Council will receive the results of a comprehensive random sample
coinmunity opinion survey which ��ill be compared against the
Couiicil set strategic direction and initiatives.
Fiscal Stability
o Procide for continued moderation of the tax lev}� rate in comparisou to
peer communities
o Provide for moderation of futura operating cost increases below our
funding ability
o Provide for maintenance of sound fiscal policies
■ The Cottage Grove local tax rate is comparatively high relative to a
selected peer group of 35 metro arca communities above 20,000 in
population. That relative positioning is created in large part due to
a moderate local tax base. This tati base has been growing on a
perceutage basis beyond the mean of this peer gruup. �ven so, in
order to approach the directive future operating cost increases must
be closely monitored. We will ensure that spending levels are less
than those of peer cammunities in response to market value
comparisons. That, plus attention to fund balance and bond rating
growth opportuniiies are of utmost importance. Plauning for
impacts of moderating market value growth the City implemented
an early retirement program in 2007. The result provides potential
for 2009 general fund operationai savings of $356,000.
• Commercial and Industrial llevelopment
o Provide for continued decelopment of the industrial park
o Provide for continued redevelopment of the Gateway District
o Provide for planning to enhance development potential of the
CottageView and iniill sites
• Efforts to espand the industrial park and commercial
redevelopment opportunities have been successful with creation of
in excess of $61 million in tayable marl.et value growth due to City
initiatives since 1999. Additional industrial growih opportunities
exist with infrastructure in and available within the indusirial park.
Two quadrants of the Gateway district are (re) developed with the
third underway. Plasuiing for redevelopment or rehabilitation of
the fourth quadrant will be pursued w�ithin an intermediate
timeframe. 'I'he East Ravine planni�ig study, completed in 2006
provides impetus to pursue development in the
Jamaica/Cotta�eView district anchored in the future by a master
planned 80 acre 600,000 square foot retail center at Comity Road
19 and Highway 61.
• Transportation and Transit
o Yrovide eontinued support of the Wakota Bridge, Red Rock Rail, and
I�igh Speed Rail initiatives
o Provide for third party funding of community infrastructure
o Provide for planning and construction activities of local madway
infrasu•ucture
• Efforts to push for completion of the Wakota Bridge project,
commenced in 2003 must continue. Current state transportation
goals are to substantially complctc this project in 2010. The region
has realized successfuil 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 iniegral piece
of the eventual northeasterly Rush Corridor or the southeasterly
Red Rock Corridar through Cotiage Grove. Legislative efforts are
also underway to e�pand Illinois and Wisconsin efforts for high
speed raiL one corridor of which could be on the Red Rock route.
During 2007 the City completed the $4.1 million reconstruction of
the Jatnaica/TH 61 inierchange ramps and roadway connections
with the first state sponsored two-lane double roundabout. For
2008 the City is coutinuiug its i994 initiative to reconstruct or
reclaim roadway surfaces ihroughout the cominunity over a tifty
year timeframe with this neat segment Qdeal / Immanuel)
projected at a cost of $8.6 million. During ?008 the City
auticipates completion of the SF Area Transportation Study which
plans future infrastiucture enhancements related to the CR19/TH61
interchange.
Housing Development
o Provide lor senior housing development
o Provide for targeted high end development in the East Ravine and West
Draw portions of the community
■ The City has long sought a multi-family senior housing product.
In ?00617 two projects have been approved and are under
construction. Included is the l�}Z unit Norris Square projact (with
market rate, assisted azld memory care units) in the southwest
quadrant of the Gateway along with a 41 unit assisted living phase
of the two phase White Pines project in the northeast quadrant of
this district. Continued opportwiity e�ists for single level active
senior housing producl. Cottage Grove currently has a single
family housing market value average of $235,000 which is below
that of most peer communities. Focus, therefore, is on move-up
second and third tier housing buyers as �ve con�plete build-out of
the West Draw and as we move into ihe 4,000 acre East Ravine
District. Infrastructure was constructed in the 800 acre Upper
Ravine sub-district in 2007 with model hoines in the first
subdivision expected in 2008.
• Public Facilities
o Provide for expansion of the Ice Arena and planning for maintenance
and/or expansion of other municipal buildings
o I'rovide for construction, maintenance and repair of parks and coinmunity
spaces
o Provide proactice arowth and maintenance of municipal utility systems
� In 2005 the City identified a need to begin planning for future
facilities in both the public safet} and general government areas.
In the 2006, ?007, and 2008 budget allocatious are provided to
prepare for this future projcct. "I'his project is anticipated to be
constructed on a future segment of the Ravine 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 timefraine.
In 2007 the City initiated a$6.6 million expansion of the Cottage
Grove Ice Arena wzth construction beginning early in 2008 with
project completion by October 1. Agreements are in place with
our partner organizations, School District 833 and the Cotiage
<3rove Athletic Assoeiation both of which have coinmitted to
provide annual infusions into the operation through purchase oi' ice
time.
An increasing emphasis has been placed on both park development
and storm water projects. During 200'7 we were abie to leverage
both priority areas by creation of storm water improvements within
the Pine Tree Valley and IIamlet Parks. These infrastructure
projects provided for federal and state mandated water quality and
quantity improvements while at the same time providing amenities
for the user uf ihe park system and adjacent residential properties.
Future siinilar projects are aniicipated. As a growing community
we continually plan for growth of our water distribution system.
During 3008 we anticipate working closely �yith the Minnesota
DeparUnent of Health on future system capacity and quality
enhancement.
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