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Home My WebLink AboutCity Council Packet 05-23-2017 SpecialCITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING MAY 23, 2017, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Financial Plan and budget goals B. Lodging tax C. Set future Study Sessions 3. ADJOURN Special Council Meeting 1 of 1 May 23, 2017 rp) City of PEymouth Adding Quoiity to Life To: SPECIAL COUNCIL MEETING Prepared by: May 23, 2017 Reviewed by: Item: Agenda 2A Number: Dave Callister, City Manager Luke Fischer, Administrative Services Director Financial Plan and 2017 Budget Goals The purpose of this study session is to kick-off the 2018-2019 Biennial Budget process and to identify City Council financial goals. Input from the Council will be used by the City Manager and departments as the detailed budget is developed. At this time, staff plans to distribute the first formal draft of the budget to the Council on August 4. Revenue Assumptions There are a number of revenue assumptions that staff will use as it develops the budget. These assumptions include: - Market Value Gains from New Growth. In the past year, the City has seen about 1.52% in new market value growth. This new growth will mitigate the impacts of growth related services - Market Value Gains from Rising Property Values. In the past year, the City has seen about 3.72% in market value gains from rising property values (inflationary growth). - Building Permit Revenue. Building permit revenue will generally continue on the same trend as previous years. - Investment Earnings. Investment earnings will continue on the current trend of about 1.5% per year. Staff will continue to monitor market trends and anticipates earnings may be slightly higher if the market increases interest rates, but are not comfortable increasing this budget revenue at this time. Expenditure Assumptions There are a number of expenditure assumptions that staff will use as it develops the budget. These assumptions include: - Service Level Stability. Generally, staff anticipates presenting a draft budget with stable service levels across all departments. - Personnel Expense. Personnel expense represents approximately 60% of the General Fund Budget. At this time, staff anticipates several new positions to be presented to the Council. Each proposed position will be carefully vetted prior to the draft budget. As a benchmarking tool, we continue to track employees per one - thousand residents and are projected to stay within the same ratio as years past. - Health Insurance. Last year, staff negotiated a renewal with Medica — but will issue a request for proposals for 2018 health coverage, as required by state law. While this should yield competitive rates, the first draft of the proposed budget is planned to carry a contingency cost increase that will be adjusted accordingly if rates come in lower. - Street Replacement Levy. The Street Replacement Levy continues to fund about half of our street reconstruction and mill and overlay expense. Through our capital improvement planning, staff believes that the current levy trajectory is sufficient for our current plan. - Park Replacement Levy. The Park Replacement Levy has been lagging behind replacement needs identified in our capital improvement planning. Staff will present a more detailed analysis of the replacement needs and funding levels through the budget process, but anticipates this levy will be proposed for a larger than normal increase for the next several years. Page 1 Capital Improvement Planning. Staff anticipates general stability in our capital improvement planning from prior years. Other Considerations There are a number of areas in which staff anticipates there will be further deliberation needed through the budget process. These areas include: - Surplus. At this point in time, staff is estimating the 2016 Surplus to be about $1.8 million. Additionally, there will be about $650,000 available from the recent property sale to Xcel Energy. - Frequency and Quality of Services. If the Council has initiatives it would like to see included in budget discussions, staff would seek that input as part of this preliminary budget discussion. This will allow some time for costing and planning, if necessary. - Utility Funds. Each year, the City updates Utility Fund revenues and expenditures through a Utility Rate Study. Those rates are included in the budget development. - Market Lag. When new homes are constructed, there is an approximate two year lag between when the property demands service and when it pays full taxes. This has been accounted for in our financial modeling, but there are instances in which growth temporarily outpaces tax revenues. Staff plans to present potential levy scenarios during the meeting with our Ten Year Financial modeling tool. Page 2 rp)City of Plymouth Adding Quality to Life SPECIAL COUNCIL MEETING May 23, 2017 Agenda 2C Number: To: Mayor and Council Prepared by: Dave Callister, City Manager Reviewed by: Item: Set Future Study Sessions Pending Study Session Topics (at least three Council members have approved the following study items on the list): • HOA turnover and stormwater drainage between plats • Vicksburg Lane median proposals Other Council requests for Study Session Topics: None at this time. Staff's requests for Study Sessions: • Quarterly City Manager's Update (suggested date - June 27th following regular Council meeting) • EDA — meeting with brokers Page 1 r� City of Plymouth Adding Quality to Life June 2017 Page 2 1 2 3 4 5 6 7 8 9 10 12:30 PM 7:00 PM 7:00 PM Northwest Green- PLANNING PARK It REC way Ribbon Cutting COMMISSION ADVISORY Vicksburg Lane MEETING COMMISSION Pedestrian Bridge Council Chambers (PRAC) MEETING Plymouth Creek Center 11 12 13 14 15 16 17 5:30 PM SPECIAL COUNCIL 7:00 PM MEETING ENVIRONMENTAL Review future trail QUALITY projects COMMITTEE (EQC) Medicine Lake Room MEETING 7:00 PM Medicine Lake Room REGULAR COUNCIL MEETING Council Chambers 18 19 20 21 22 23 24 7:00 PM 7:00 PM 9:00 AM - 11:00 AN PLANNING HOUSING AND Music in Plymouth COMMISSION REDEVELOPMENT 5K Run/Walk MEETING AUTHORITY (HRA) Hilde Performance Council Chambers MEETING Center Medicine Lake Room 25 26 27 28 29 30 5:30 PM SPECIAL COUNCIL MEETING Police Body -Worn Cameras Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Page 2 rCity of Plymouth Adding Quality to Life July 2017 Page 3 1 2 3 4 5 6 7 8 5:30 PM - 10:30 PM INDEPENDENCE Music in Plymouth DAY Hilde Performance Center CITY OFFICES CLOSED 9 10 11 12 13 14 15 7:00 PM NO REGULAR ENVIRONMENTAL COUNCIL MEETING QUALITY COMMITTEE (EQC) MEETING Medicine Lake Room 16 17 18 19 20 21 22 7:00 PM PLANNING COMMISSION MEETING Council Chambers 26 27 28 29 7:00 PM 7:00 PM REGULAR HOUSING AND COUNCIL MEETING REDEVELOPMENT X3Y25 Council Chambers AUTHORITY (HRA)MEETING Medicine Lake Room Page 3 rCity of Plymouth Adding Quality to Life August 2017 Page 4 1 2 3 4 5 7:00 PM 5:30 PM - 8:30 PM PLANNING Kids Fest COMMISSION Hilde MEETING Performance Center Council Chambers 6 7 8 9 10 11 12 7:00 PM 7:00 PM REGULAR COUNCIL ENVIRONMENTAL MEETING QUALITY Council Chambers COMMITTEE (EQC) MEETING Medicine Lake Room 13 14 15 16 17 18 19 6:00 PM 7:00 PM SPECIAL COUNCIL PLANNING MEETING COMMISSION Budget and CIP MEETING Medicine Lake Room Council Chambers 20 21 22 5:30 PM 23 24 25 26 SPECIAL COUNCIL 7:00 PM MEETING HOUSING AND Budget and CIP REDEVELOPMENT Medicine Lake Room AUTHORITY (HRA) MEETING 7:00 PM Medicine Lake Room REGULAR COUNCIL MEETING Council Chambers 27 28 29 30 31 6:00 PM SPECIAL COUNCIL MEETING Budget and CIP (if needed) Medicine Lake Room Page 4 r�Plymouth Adding Quality to Life September 2017 Page 5 1 2 3 4 5 6 7 8 9 7:00 PM PLANNING LABOR DAY COMMISSION MEETING CITY OFFICES Council Chambers CLOSED 10 11 12 13 14 15 16 7:00 PM 7:00 PM 7:00 PM 4:00 PM - 8:00 PM REGULAR COUNCIL ENVIRONMENTAL PARK Et REC ADVI- Best of the West MEETING QUALITY SORY Local Business Council Chambers COMMITTEE (EQC) COMMISSION Sampler MEETING (PRAC) Hilde Performance Medicine Lake Room MEETING Center Park Maintenance 17 18 19 20 21 22 23 7:00 PM 10:30 AM - 3:00 PM PLANNING lymouth on Parade COMMISSION Celebration MEETING City Center Area Council Chambers 24 25 26 27 28 29 30 7:00 PM 7:00 PM REGULAR COUNCIL HOUSING AND MEETING REDEVELOPMENT Council Chambers AUTHORITY (HRA) MEETING Medicine Lake Room Page 5