07-12-16 CM Agenda Packet AGENDA
Council/Manager Meeting
Golden Valley City Hall
7800 Golden Valley Road
Council Conference Room
July 12, 2016
6:30 pm or immediately following the HRA Meeting
Pages
1. Golden Valley Community Foundation Update (30 minutes) 2
2. DeCola Ponds Governance Update (15 minutes) 3
3. Biennial 2017-2018 Proposed General Fund Budget (45 minutes) 4-6
4. 2015 Positive Performance - General Fund Transfer and Assignment of Fund 7-9
Balance (20 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.
This document is available in alternate formats upon a 72-hour request. Please call
7b3-593-8006 (TfY: 763-593-3968) to make a request. Examples of alternate formats
may include large print, electronic, Braille, audiocassette, etc.
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Executive Summary
Golden Valley Council/Manager Meeting
July 12, 2016
Agenda Item
1. Golden Valley Community Foundation Update
Prepared By
Timothy Cruikshank, City Manager
Summary
Dick Crockett, Executive Director of Edina Community Foundation, will be at the meeting to
present an overview of their Foundation. Members from the Golden Valley Community
Foundation will also be at the meeting.
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Executive Summary
Golden Valley Council/Manager Meeting
July 12, 2016
Agenda Item
2. DeCola Ponds Governance Update
Prepared By
Timothy Cruikshank, City Manager
Summary
At the meeting I will give an update on the DeCola Ponds Governance process.
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Executive Summary
Golden Valley Council Manager Meeting
July 12, 2016
Agenda Item
3. Proposed 2017-2018 General Fund Biennial Budget
Prepared By
Susan Virnig, Finance Director
Summary
Schedule
All sections of the Proposed 2017-2018 Budget and 2017-2021 Capital Improvement Program
(CIP)will be reviewed at the next three Council Manager Meetings:
� July 12 General Fund
� August 8 (Mondayj Other Funds and 2017-2021 CIP
� September 13 Wrap up- Proposed Levy Review
The Proposed Levy and Budget that will be used for the Proposed Property Tax Statements
(sometimes called the "Truth in Taxation") sent in November will be approved September 20.The
deadline for approval was changed to September 30 in 2015.
If needed, all sections may be reviewed again at the Council/Manager Meetings on October 13
and November 9.
The final levy and budget will be approved at the December 6 Council Meeting.
Overview
Staff will have a presentation outlining the Proposed 2017-2018 General Fund Budget. As you
review for the meeting, please remember that the 2017 concept numbers (in shaded area) were
approved in "concept only" with the 2016 Budget. The presentation will go over the 2017
proposed totals, which includes a reduction for overall salaries and fuel costs. The main areas of
change are listed below.
Revenues
Ad Valorem Taxes are increased to balance the budget ($633,185).
Permits are based on an average year and remain level. Although we have had some major
projects come through, it is not wise to plan for that type of activity every year.
Expenditures
(001) Mavor and Council
■ (6340) Cost for a lobbyist to represent the city's interest at the State Legislature was
added ($20,000).
(004)Transfers
■ (1025.7110) Permanent Transfer (p 51) increased by$125,000.
o $25,000 will help fund the Park Improvement Fund. The current level (2017) is at
$250,000 and the goal is to reach $400,000 as per Debt Discussion/Infrastructure
Needs Presentation.
o $100,000 will help fund the Street Overlay Program. The current level (2017) is at
$300,000, and the goal is to work with a program along with assessments to fund
overlays needed as per Debt Discussion/Infrastructure Needs Presentation. Until this
program is set up,the goal is to reach to$500,000.
(022) Police/(023) Fire
■ (1320.6324) (p 144)/(1346.6324) (p 165) Clothing (uniforms) for both Police and Fire has
increased due to turnover and age of fire coats.
�036) En�ineerin�
■ (1420.6340) Professional Services (p 190) has increased to include updates to the City's
benchmarks ($2,500) and street ratings for a third of the city ($13,000).
(067) Park Maintenance
■ (1620.6382) Contract Maintenance for pouglas Drive ($10,000 for 2017; $20,000 for 2018)
was added to help maintain the new landscaping. If the Lilac Project would continue an
additional $25,000 was added to maintain any new areas planted.
(065)Communitv Centers
The new Brookview Community Center will be set up as a Special Revenue Fund.This new fund
will help track separately the revenues and expenditures from the banquet facility, room rentals,
and children's play area. In 2017, the General Fund will make a transfer to help fund the costs
until they open in fall of 2017.
■ (1669) Ronald B Davis/Meadowbrook School Community Center. This program will be
accounted for under Park and Recreation programs (p 316).
General Fund - Fund Balance (p 320)
An estimated fund balance analysis is included to show the outlook of the next three years.
Staffin� (p 321)
The new staff added (mid-2017) is for the Brookview Community Center and will be funded with
new revenues from the Banquet Facility, Children's Play Area and Meeting Room rental.
Estimated Tax Impact on Properties
Staff will present the estimated tax impact and possible reductions to the levy on Tuesday.
Attachments
• Bring your Biennial 2017-2018 Proposed General Fund Budget (previously distributed)
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Executive Summary
Golden Valley Council/Manager Meeting
July 12, 2016
Agenda Item
4. 2015 Positive Performance-General Fund Transfer and Assignment of Fund Balance
Prepared By
Susan Virnig, Finance Director
Summary
Council and Staff will have further discussion on the Positive Performance from the 2015 General
Fund.The transfer amount to be discussed is$1,325,000. The Tax Abatement Transfer of
$250,000 was made on May 17.
Attachments
• Special Council/Manager Executive Summary dated May 17, 2016 (2 pages)
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Executive Summary
Golden Valley Speciaf Council/Manager Meeting
May17, 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.
�uipment 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