05-17-16 Special Council/Manager Meeting - final AGENDA
Special Council/Manager Meeting
Golden Valley City Hall
7800 Golden Valley Road
Council Conference Room
May 17, 2016
5 pm
Pages
1. Debt Discussion/Infrastructure Strategy (45 minutes) 2
2. 2017-18 Budget Kick-off (15 minutes) 3-4
3. 2015 Positive Performance General Fund Transfer and Assignment of Fund 5-6
Balance (5 minutes)
Council/Manager meetings have an informal, discussion-style format and are designed
for the Council to obtain background information, consider policy alternatives, and
provide general directions to staff. No formal actions are taken at these meetings. The
public is invited to attend Council/Manager meetings and listen to the discussion; public
participation is allowed by invitation of the City Council.
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Executive Summary
Golden Valley Special Council/Manager Meeting
May 17, 2016
Agenda Item
1. Debt Discussion/Infrastructure Strategy
Prepared By
Timothy Cruikshank, City Manager
Summary
Staff will present an overview of our current debt and future infrastructure needs, in accordance
with the 2015 asset and infrastructure report.
The purpose of this discussion is to begin the process of developing a long term roadmap through
the prioritization of the City's needs, and how we can make it happen.
The discussion is consistent with 2 of the 4 priorities on the 2016-2018 Strategic Plan
(Infrastructure Maintenance & Enhancement and Financial Stability) as well as the 2016 Council
goals.
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Executive Summary
Golden Valley Special Council/Manager Meeting
May 17, 2016
Agenda Item
2. 2017-2018 Budget Kickoff
Prepared By
Timothy Cruikshank, City Manager
Summary
Staff is seeking general feedback from Council as we start to prepare the Proposed 2017-2018
Biennial Budget.
Attachments
• 2017-2018 Budget Calendar (1 page)
2017-2018 BUDGET CALENDAR— BASED ON CURRENT STATUTORY REQUIREMENTS
2016 Date(s):
May 2 Budget workpapers for All Funds (General, Enterprise, Vehicle Maintenance,
Special Revenue)will be given to staff.
Mid-May Staff ineeting to determine the 2017 Equipment, Buildings and Parks projects
to be included in the 2017 Proposed Budget.
May 23 Staff returns Proposed 2017-2018 Budgets to Finance for all funds given
out on May 2.
May 24 through Meetings with City Manager and Department/Division Heads to finalize staff's
June 24 Proposed 2017-2018.
July 1 Proposed 2017-2018 Biennial Budget (General, Other Funds)to be distributed
to the City Council.
July 12 Council/Manager Meeting - budget workshop.
August 8 (Mon) Council/Manager Meeting - budget workshop.
September 2 City Council certifies 2017 Proposed Property Tax Levy and sets date for public
hearing(s) on 2017-2018 General Fund Budget and tax levy.
September 13 Council/Manager Meeting - budget workshop.
September 20 City Council certifies 2017 Proposed Property Tax Levy and sets date for
public hearing(s) on 2017-2018 General Fund Budget and tax levy. (New
date)
October 13 (Thurs) Council/Manager Meeting - budget workshop.
November 9 (Wed) Council/Manager Meeting - budget workshop.
Mid-November Proposed Property Tax notices sent by County to all property owners in the
City.
December 6 Truth in Taxation public hearing(s) on 2017 General Fund Budget and tax levy.
City Council adopts 2017-2018 General Fund Budget, 2017 Tax Levy and
2017-2018 Budgets of the Enterprise & Other Funds. The 2017-2021 Capital
Improvement Plan will be adopted.
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Executive Summary
Golden Valley Special Council/Manager Meeting
May 17, 2016
Agenda Item
3. 2015 Positive Performance General Fund Transfer and Assignment of Fund Balance
Prepared By
Susan Virnig, Finance Director
Summary
The City of Golden Valley seeks to have a good balance in its General Fund in order to have
sufficient reserves for cash flow purposes, projects, and unexpected shortfalls or emergencies. In
December 2011,the City established a formal policy on the level of fund balance that should be
maintained in the General Fund. This General Fund Balance Policy to assure adequate reserves
indicates fiscal prudence. It also maintains a high rating with bond-rating agencies, which prefer
to see very strong and healthy balances.
When the fund balance is greater than 60 percent, it should be reduced to 60 percent by using
the excess funds for specific one-time projects, acquisitions, or transfers to capital funds. These
excess funds may also be used to provide limited property tax relief(for example,to lessen the
impact of the property tax rate).
The one-time use protocol is important to ensure the City does not commit itself to expenditures
that may create deficits in future budgets. For instance, when the City experiences an excess fund
balance due to a one-time building permit revenue from a major commercial development, the
City should not expect that same revenue will be received from future building permits. Budgets
should be set using an average year of revenues and expenditures and not an exceptional year.
In 2015, Golden Valley was extremely fortunate once again to have a positive performance level
because of many reasons outlined in the December 2015 General Fund Financial Report. Because
fund balance was over 60 percent of 2016 Expenditures by$1,575,000, staff recommends making
the following transfers:
Tax Abatement Debt Service Fund $250,000
This fund is to pay for the debt service payments for the improvements to Boone Avenue that
coincided with the General Mills expansion. Although the bonds will not be paid off until 2019,
the fund will no longer need a levy for the abatement. This current abatement levy is at$300,000
for 2016.
Buildin� Fund $500,000
The City has a total of 36 buildings, of which 11 are primarily public buildings. Each building has
infrastructure such as mechanics, roofs, etc that need to be updated or replaced. Current
transfers are at $300,000 and should be at $500,000 per year.
Capital Improvement Fund $200,000
General Fund did include this amount for road maintenance, but it was not used due to other
projects within the city. The maintenance will be completed in 2017.
Park Improvement Fund $200,000
General Fund transfers to the Park Improvement Fund should be at least $400,000 to maintain
our current park and open space system. This amount, with the current transfer of$225,000, will
help finance improvements to the park and open space system.
Equipment Replacement Fund $425,000
Equipment Certificates are sold and paid back by property tax levies. This amount will help fund
the spikes when major equipment is budgeted in the Capital Improvement Program. Body
cameras were removed from the 2016 CIP to help reduce the overall tax levy and will need to be
added back into the five-year program.
TOTAL TRANSFERS $1,575,000