Citizens league & City of Edina budget workshop 2011

Welcome!

City of Edina

2011 Citizen

Budget Workshops

Purpose of the Workshops

Your charge: To provide direction to City officials on budgetary matters, both short and longer-term

1. Better understand the trends and issues of Edina’s budget

2. Share your vision and values

3. Provide input on your priorities

4. Inform the City Council

Purpose of the Workshops

5. Model meaningful civic discussion on important issues

--disagreement is to be expected

--mixed views at tables

--feel free to respectfully disagree

About the Citizens League

• Nonpartisan nonprofit for 60 years• Vision is to create the common ground

where “We the People” can achieve the common good

• Principle: People who are affected by a problem should have the opportunity to define it and weigh in on how it’s solved

How the Workshops Will Gather Input

• Three workshops • Nov. 1, Arneson Acres Park• Nov. 2, Edina Community Center• Nov. 3, Edina Public Works Facility

• Online workshop, Nov. 6• Discussion• Written comments• “Voting”--to quantify and record views,

making sure everyone is heard

How Your Input Will Be Used

• Results will be summarized and made available for all City residents at edinacitizenengagement.org

• Results will help guide City Council members and city staff as they make budget decisions

Workshop Overview

• Warm up questions• Budget overview• Discussion questions and “voting”• Wrap up and evaluation

Warm Up Question 1: In a recent survey, Edina residents were asked why they like living in Edina. What was the top response?

1. Close to family and friends

2. Good schools

3. Convenient location

4. Reputation/prestige

5. Housing/neighborhoods

6. Parks and Trails

7. Close to Shopping

8. Safety

Warm Up Question 2. The main reason I decided to come today is because:

1. It’s my civic duty

2. I have concerns about my property taxes

3. I have a specific budget issue I am concerned about

4. I’d like to learn more about the City budget

5. I didn’t have anything better to do

6. Not sure

Budget Overview

On a typical property tax statement, 21% of the taxes collected go to the City of Edina

The total 2011 City budget is $91 million

General fund

Other “general government”

Enterprise funds

Enterprise funds total $36 million in spending

The general fund totals $29 million in spending

Most property tax dollars are usedto support the general fund

A home valued at $300,000 pays these amounts for services in 2011…

$95

$176

$275

$108 $98

$20

Important Things to Know About Edina’s Budget

• Virtually no state influence• Municipal liquor stores generate excess

revenue for the general fund• Cultural and recreational amenities

require subsidies• No unsustainable expenditures

Discussion Questions

Discussion Questions

1. How should we use cash reserves?2. What is the appropriate level and source

of subsidies for amenities?3. How should we use surplus revenues

from municipal liquor stores?4. Are property tax levels appropriate?5. What should be the guiding principles for

budget decisions?

Cash Reserves

• $2.5 million available in “unreserved” cash balance

• Additional $10 million is reserved for cash flow and unexpected expenses

Unreserved Cash —Proposed Uses

• Construction projects ($700,000)• Technology and HR projects ($300,000)• One-time property tax savings (2012) by

paying debt service ($378,000)• Reduce property taxes for 10 years by

pre-paying special assessments ($155,000)

• Reduce property taxes for 20 years by pre-paying bonds ($950,000)

Principles Behind the Proposed Plan

• Control tax levy growth by controlling debt in near, intermediate and long-term

• Fiscal sustainability• Contribute to large capital outlays in

technology that provide savings in long run• Address one-time costs

Other Possibilities

• Accelerate capital improvement plan• Significant one-time reduction in

property taxes• Add to reserve fund• Your ideas

Question 3. What is your view of the proposed use of the $2.5 million in available cash?

1. It’s the right plan

2. It’s about right, with some minor modifications

3. It needs significant changes

4. It’s the wrong plan

Usage of City Amenities

% HHs using

Aquatic Center 39%

Braemar Golf Course 36%

Braemar Ice Arena 30%

Centennial Lakes/Edinborough Parks 69/48%

Edina Art Center 33%

Edina Liquor 72%

Operating Income of City Amenities

2010 Operating Income of City Amenities

Capital Improvement Plan and Sources

self-funded funded from other sources

Questions 4-9.What principle should guide the financing of City Amenities (golf course, ice arena, Edinborough, Centennial Lakes, arts center, aquatic center)?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 4.What principle should guide the financing of the Golf Courses?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 5.What principle should guide the financing of the Braemar Ice Arena?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 6.What principle should guide the financing of Edinborough Park?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 7.What principle should guide the financing of Centennial Lakes Park?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 8.What principle should guide the financing of the Arts Center?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 9.What principle should guide the financing of the Aquatic Center?

1. It should be completely self-supporting, including capital expenditures.

2. It should be self-supporting with regard to annual operating expenditures.

3. The current levels of subsidies are appropriate.

4. It should receive more financial support so that fees can be reduced.

5. Other

Question 10. Would you oppose any of the following in order to make facilities more self-supporting? (select all that apply)

1. Higher user fees

2. More ad revenues and sponsorships

3. Private naming rights

4. More reliance on private donations

5. Oppose all of the above

6. Support all of the above

Question 11. In the future, how do you think the excess revenues from liquor sales should be used?

1. As in the past—to subsidize cultural and recreational facilities

2. To reduce property taxes

3. To accelerate or add capital projects, especially street repair

4. Redevelopment (such as Grandview study)

5. Other

Property Taxes

For 2012, the proposed

property tax levy

will increase by

$462,000 or 1.8%

Adjusted for inflation, a $300,000 home in 2012 will pay about the same taxes as in 2005

Property TaxesTax Rates: $300,000 Home in 2010

City Taxes Total Taxes

Minneapolis $1,827 $4,273

Hopkins $1,470 $4,053

Bloomington $1,143 $3,726

St. Louis Park $1,113 $3,719

Minnetonka $ 964 $3,571

Eden Prairie $ 908 $3,614

Edina $ 707 $3,310

In 2008, Edina ranked 94th among 117 metro area cities in residential property tax rate

(1=highest)

Total City portionMinneapolis 10th 1stRichfield 36th 31stSt. Louis Park 45th 48thMinnetonka 55th 72ndWayzata 60th 90thEdina 64th 94th

Question 12. In general, which statement best reflects your opinion of the City’s property tax levels?

1. They are reasonable

2. They are high, but we get good value for our money

3. Compared to other cities, we get a great deal!

4. Reducing property taxes without reducing services should be a city priority

5. Services and taxes should be reduced

6. Other

Question 13.Which principle best reflects the highest priority for Edina’s City budget for the next five years:

1. Avoid property taxes increases, especially with the growing population who live on fixed incomes

2. Maintain quality of services and amenities, because these help create our quality of life

3. Focus on rejuvenating Edina for the future by using surplus funds for capital improvements and redevelopment

4. Make City services more cost-effective by implementing efficiencies and reforms

5. Other

Question 14. In the future, what opportunities should be available for residents regarding City budget decision-making? (select all that apply)

1. Public hearings are sufficient

2. More and clearer information on the City’s website

3. More and clearer information in the newsletter

4. More meetings like this one

5. I feel comfortable letting city officials decide without citizen input

6. Other

Who’s In Attendance?

Question 15. How long have you lived in Edina?

1. Less than 2 years

2. 2-5 years

3. 6-10 years

4. 11-20 years

5. 21+ years

Question 16. What quadrant of Edina do you live in?

1. NE: East of Hwy 100, North of Crosstown

2. NW: West of Hwy 100, North of Crosstown

3. SE: East of Hwy 100, South of Crosstown

4. SW: West of Hwy 100, South of Crosstown

Question 17. Do you have school-aged children (5-18) living at home?

1. Yes

2. No

Question 18.Do you rent or own your home?

1. Rent

2. Own

Question 19.What is your age?

1. Under 19

2. 19-35

3. 36-50

4. 50-65

5. 65+

Thank You!

For workshop summaries and the opportunity for more input and

questions go to:

edinacitizenengagement.org

Public hearing: December 6