3.0. SR 04-26-2004MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor and City Council
Pat Klaers, City ~strator
April 26, 2004 ~
Special City Council Meeting
A special City Council worksession is scheduled for 3:00 p.m. on Monday, April 26, 2004 at City
Hall in the Upper Town Conference Room. The purpose of this special meeting is to begin work on
the governance section of the City Administrator/City of Elk River work program as developed by
Jim Brimeyer. Attached for your information is the City Administrator/City of Elk River work
program dated December 2003 and the planning process outline as prepared by Mr. Brimeyer for
work on this governance issue. The City Council has hired Mr. Brimeyer to facilitate this planning
process.
Also attached are the January 20 and February 17, 2004 Special City Council meeting minutes when
this governance and goal setting/strategic planmng process was discussed by the City Council. At
the meeting on February 17, the City Council requested information on existing goals that are
identified in our approved planning documents. Attached for your information is some material on
goals, policies, and action steps for various existing plans as provided by Director of Economic
Development Catherine Mehelich and Director of Planning Michele McPherson. This material
comes from: the Economic Development Strategic Plan, the Marketing Strategic Plan, the
Downtown Project Outline, the draft Comprehensive Plan, the draft Transportation Plan, and the
City Parks and Recreation Plan. Goals for all city departments are also included in the recently
distributed 2003 Annual Report. A final attachment that I am including for your information is the
fzrst few sections of the City Financial Management Plan.
S: ~C ouncil~Pat\2OO4~specialccmtg426.doc
City AdmJnistramr
&
City of Elk River
December, 2003
ORGANI. ZATION,&L NbMNAGEMENT
· Develop a plan which provides 1hr more feedback and eva/uarion of staffpefformancc. Init/are 1/01/2004,
Evaluate every 30-90 days
· Assist senior sr~ff in developing Nd/vi. dual goat and depa_,-Xnent goals to ensure .personal and pro~hssional ~ov<h
and department effectiveness. 1st Quarter 2004
With staff assistance and Council input, propose options for preferred orgm:nzafional st~crm-e, stat:lng leveis,
reporting relationships and a timetable Ibr ulrimare implementation over 2-3 yom- period. Initial report -
Quarter 2004; Final plan 2"d Quarter 2004
C OU ~4CLL/STA.FF RELATIONS
· With Council input, develop a system for more "informal" Council discussions to evaluate proposals andpolicies
prior to formal Council approval. 4'h Quarter 2003
· Work ,with the City Council on "acceptable rules of behavior" for Council, suaff and Administrator interaction and
communications - formal and informal..4~ Quart'er 2003; 1" Quarter 2004
· An'ange for goal setting/strategic planning session for Council and sta~: ,l" and 2'd Quarters 2004
· Assess and provide options to the Council for the preferred governance model to guide policy, development,
options, and gu/delmes for decision making..2"d Quarter 2004
T~TAI P bid
SPECIAL MEETING OF TIlE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 20, 2004
Members Present:
~,[embers Absent:
S ta ff Pres ent:
Mayor Klinzing, Councilmembers Dietz, KL~ester (5:30 p.m.),
Motin (5:35 p.m.), and Tveite
None
Cit7 Administrator Pat I~aers, Finance Director Lori :Johnson, City
Attorney Peter Beck, and Recording Secretary Tina Allard
CaLl MeeLing To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council ~vas called
to order at 5:25 p.m. by Mayor ICiinzing.
2. Work Program
Mayor I-,52dnzing stated that the Council is having this worksession to discuss the ~vork
program for the city ad~-ninistrator and the City of Elk River as recommended by Jim
Brirneyer, The Brimeyer Group, Inc. T?~e Council discussed organizational management,
council/staff relations, and governance.
Oc~_~aniza tional ]klana~em er~ t
The Council stated that more feedback and evaluation of personnel performance should be
completed. The Council questioned and discussed lxow department goals could be
established prior to cityxvide goals or a city-wide strategic plan being adopted.
The Council directed the city adir2mstzator to get input from staff and the Council and then
to propose opdons for a preferred organizational structure for the city, including staffing
levels, reporting relationships, and a twnetable for imptementador~.
Co uncil/Sta££Rel:~tfot~s
The Council e*ett that the establishment of a ~vorksession meeting each month would provide
for a more informal meeting setting tl~at would help to improve relations between Council
and staff and would help in the evaluation of city, proposals and policies.
The Council agreed to discuss "acceptable rules of behavior" at a foLlow up meeting.
The Council was unsure l~o~v they would Like to proceed with goal struc~_~ring for the city.
Tl~ey diso.~ssed departmental goals versus citu,vide goals. It was the consensus of the
Council that they are responsible for setting the goals, visioning, and the policymaking for
the city. Discussion was l~eld on l~ow i~nuch the Council should become involved ~vith day-
to-day activities at staff level sucl: as more co~22rmttee involvement, corrUng to Cit7 Hall a
couple o~' hours each ~veek, review of budget requests, etc.
City Council M. mutes
JaliualT~ 20, 2004
Page 2
It was the consensus of the Council to hold a ~vorksession on February 17, 2004 for the
Council to discuss their goals for the City. of Elk River. The Council noted that the work
program needs further discussion and revie~v and that the dmetables need to be established
for the various work areas when the ~vork program is adopted.
Adjournment
There being no further business, Mayor K2inzing adjourned the meedng of die E~ ~ver
Ci~ Counc~ a~ 6:20 p.m:
Nfinutes pz'epared by Tina AHard
Joan Sch~mdt, Ci~ Clerk
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL LUNCHROOIq
MONDAY, FEBRUARY 17, 2004
Members Present: Mayor I<linzx g, Councilmembers Dietz, Kuester, Mot_in, and Tveite
Members Absent: None
Staff Present:
City Admimstrator Pat I,~laers, Finance Director Lori Johnson, City Clerk
Joan SchroSdt, Building and F~nvironmental Administrator Steve Rohlf, and
Recording Secretary Tina Allard
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk 1Liver City Council was called
to order at 5:10 p.m. by Mayor I42inzing.
2. Consider 2/17/2004 Agend¢
MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY
COUNCILMEMBER KUESTER TO APPROVE THE AGENDA. MOTION,
CARRIED 5-0.
Discussion on Ci .r?vide Goals and Continue Planning on Work Program for Council and
Staff Development
Each Councilmember was assigned a different community's visioning process, mission
statement, and goal setting plan, to review and then to report on that plan during this
worksession.
Councilmember Kuester-City of Becker
Councilmember Kuester discussed dae process used in the City of Becker to create their
visioning process. She discussed the definidons of the terms: vision statement, mission
statement, and goals. Overall, Councilmember Kuester liked Becket's visioning plan.
Mayor I(flinzing stated that she liked fl~e visioning ideas in the first plan but felt that d~e
follow up plan was too detailed.
Councilmember Tveite-Ciw of Mounds View
Councilmember Tveite staied that he liked fl:e City of Mounds View's vision plan. He stated
flaat the plan discussed long term/short term goals, citywide/departmental goals, and yearly
action steps/long term action steps. He stated that the pfioritization of goals was missing
from flae plan and that staff needs direction in this area. He also stated flaat dais visioning
process needs to determine the city's target market. He stated that the target may not always
be the citizen, but could include staff, developers, etc.
City Adininistrator Pat I42aers stated that staff presents goals in their annual report and is
loo'kmg for feedback from Council regarding priorities and how these goals fit into the
citywide vision of Council.
City Council iv[mutes Page 2
Februaz3, 17, 2004
Councihnember Motin stated that Elk River has al_ready completed its visioning process
through the Comprehensive Plan, the Transportation Plan, and other plans the city has
created. He stated that staff needs to bring any goal conflicts to the Council. He stated that
the worksessions scheduled to begin in April will help resolve the issues regarding lack of
staff direction from the Council and lack of staff information brought forth to Council prior
to decisions needing to be made.
Councilmember Tveite stated that guidelines need to be established to assist staff in
determining how to prioritize resources.
Counciimember I-2uester stated that individuals have different priorities on which goals are
most important. She stated, as an example, that when an applicant has to come before the
Park and Recreation Commission, the Planning Commission, and then the Council, they
may get three different answers or comments from these boards, which creates confusion to
staff and the 'applicant.
Councilmember Motin-Cities of Plymouth and Minnetonka
Councilmember Motin stated that the vision plan for these two cites were, for the most
part, identical. He stated that any city could agree with either of these plans and adopt them.
He stated that the plans were altruistic and that a city can't follow all of them or lived up to
them. Councilmember Motin stated that staff needs to follow the various plans already
adopted by Elk River and if there are any conflicts; bring them to Council attention.
Mayor IClinzing-Citv of St. Louis Park
Ma~or IOinzing staied that the vision plan for St. Louis Park would not apply to Elk River
as St. Louis Park is an established city with no gro~vth issues.
Councilmember Dietz-City of Willmar
Councilmember Dietz stated that WLllmar worked xvith the school district and the county on
their visioning plan. He stated that they did not prioritize their goals and the plan is basically
common sense statements about what is good or beneficial for the city.
Councilrnember Kuester suggested that each Counciha~ember list some of their goals for the
city.
Mayor Klinzing suggested that staff compile and present to the Council the city's current
goals from the Comprehensive Plan, Transportation Plan, Financial Plan, Economic
Development Strategic Plan, Annual Reports, etc. She also suggested that staff respond to
questions regarding what goals and visions they would like to see for Elk River and what
additional direction they need from the Council.
Mr. IClaers stated that city boards and commissions also need direction from Council. Mr.
I<laers offered some examples of issues that staff would like clarified by the Council.
Building and Environmental Administrator Steve Rohlf stated that some of the goals can be
conflicting with each other and staff needs direction on how to prioritize them. He stated
that the city needs to determine what it needs to do before considering the budget rather
than looking at the budget f~rst and determining what can fit into it.
Citw Clerk Joan Schmidt suggested that Council and staff get together for an all day Saturday
wo~'ksession to brainstorm a comprehensive list of ideas for cit3~ goals and vision and then
Cit3~ Council lVimutes Page 3
February 17, 2004
prioritize these ideas. Finance Director LoriJohnson stated that she a~eed and felt that this
would help to set the tone for helping everything fall into place afterwards.
Mayor I<linzing stated daat it ~vould be appropriate to have consultant jun Brirneyer facilitate
this worksession.
Staff will try to set up a meeting on Saturday, May 15, 2004. Mayor I-.Zlinzing requested that
the new City Council schedule be held off to be~n in May so that Council can have a special
worksession on Monday, April 5, 2004 to discuss the city organizational structure.
Mr. I~aers stated that the Chamber's State of the City address will be held on Tuesday,
March 16, 2004 in the Public Safety facility in the EOC.
Adjournment
There being no further business, Mayor I<linzing adjourned the meeting of the Elk River
City Council at 6:45 p.m.
Minutes prepared by Tina Allard
Joan Schmidt, City Clerk
Objectives:
·
City o£ Elk River
Planning Process
Detern2ne preferred process for Council decision mald_ng/Governance
· Refine City Mission/Vision
· Develop list of pnoritT goals '~vid2 a long term strategic emphasis
· Adopt m~plementadon model and Action Plan for Council and staff achievement
Methodology
Three Sessions -Appro:~mately 3-4 hours
Session I - Council/A&r2mstrator/Staff (optional)
4/26/04-'3:00 pm
Expectations
Governance Model
Mission
Strategic Planrm~g Model
Issue Discussion
Session II - Council/Admimstrator/Staff 5/10/04
- Review Govez-nance Model
- Mission
- SWOT Analysis
- Identif7 Issues
- Establish Priorities
6:30 pm
Session III - Council/A&-ninistrator/Staff
- Revie~v Pnonties
- Implementation Model/Action Plan
- Council AccountabilitT Process
- Staff performance
- Process for evaluation
- Governance discussion
5/24/04 5:30 pm
2004 GOALS
The Economic Development Strategic Plan will be updated jointly by the EDA, HRA, and
the City Council in early 2004 for implementation years 2004 - 2007.
The most recent (1999) Economic Development Strategic Plan includes the following
major goals:
Industrial Base
· Attract new business to increase the city's industrial base
II.
Business Retention and Growth
· Retain and grow the city's existing business/industry
III.
IV.
Marketing Strategy
· Create and implement an industrial strategy to develop the city's business
parks
Develop/Redevelop East Highway 10 and the Central Business District
· Undertake activities that facilitate development/redevelopment on East
Highway 10 and in the Central Business District
The Strategic Industrial Marketing Plan will assist the city in addressing several major
issues and goals identified in the City of Elk River Economic Development Strategic Plan.
CITY OF ELK RIVER
STRATEGIC INDUSTRIAL MARKETING PLAN GOALS
2002 - 2004
MARKET STRATEGY, OBJECTIVES AND POSITIONING
· To establish the City of Elk River as the hub for light manufacturing firms in
the northwest metro region of the Twin Cities by 2005.
· To build out East and West Business Parks with a range of building sizes that
meets the City of Elk River's design standards by 2010.
· To target the following Standard Industrial Classification sectors: Industrial
Machinery, Fabricated Metal and Electronic Equipment.
CORE STRATEGIES
Product Offering
To provide excellent location site services, attra~ve land locations, and pricing that
reflects a good-value and competitively priced product.
Competitive Strategy
To collect and maintain current information on key competitive communities including
land price, available land with utilities, and local incentives.
Key Account and Lead Generation Strategy
To establish the City of Elk River as the place to site a light-manufacturing firm with
economic development key influencers, leaders, and providers.
Promotion and Advertising Strategy
To promote that the City is "Open for Business" and to generate leads for the East and
West Business Parks.
Public Relations Strategy
To create awareness that the City of Elk River is a business-friendly community for light
manufacturing firms.
Strategic Partnership Strategy
To establish strategic partnership to support long-term Economic Development in the
oreo.
Business Retention Strategy
To retain and expand the current industrial base in the City of Elk River.
Downtown Revitalization Project
Project Goal & Objectives
Purpose
For more than 30 years, various studies and proposals have examined the need to
redevelop Elk River's downtown business district. Investment in the downtown has
stagnated and area businesses and residents alike are concerned about the need to
revitalize downtown and attract people there.
Neighborhoods age, and change will occur whether or not the city intervenes.
Controlling that change through revitalization and redevelopment will ensure that the
types of changes that occur in downtown Elk River are the ones people want those that
will keep our community vital and flourishing.
Primary Goal
To assure the long-term viability of downtown by making a connection to the rest of the
community and by utilizing the riverfront location. Redevelopment will enhance
downtown Elk River's role as a residential, retail, and commercial area and also revitalize
investment in the downtown business district.
Development Objectives · Mixed Use (residential/retail/service)
· Consideration of the historic context study results
· Strengthen connection to the community
· Traditional downtown design elements
· Brick, stucco, stone materials with visual breaks in the building design
· Increased residential density
· Pedestrian orientation
· Increase exposure to the riverfront
· Recognize those buildings that have potential for rehabilitation
· Replace market/economic obsolete buildings
· Multiple types of housing products (i.e. townhomes, senior rental coops, market
rate apartments)
Importance of aVision
According to an old story, txvo stonecutters were asked what they were doing.
The first said, "I'm cutdng this stone into blocks." The second replied, "I'm
on a team that is building a cathedral."
This story illustrates the role of a vision in managing the growth and
development of a city. Without a vision, development management works
much like the first stonecutter with new pieces added without a clear picture
of what is being built. The Comprehensive Planning process has been described
as building the future Elk River. The cornerstone of that building is the Vision
Statement, which provides a larger picture of the "cathedral" that Elk River
seeks to become by offering a broad and enduring view of Elk River. Each
development and redevelopment project, therefore, must help to build the
future, not just fit cleanly with the next "stone block".
The Vision serves several purposes:
· The Vision serves as a tool for evaluating proposals, projects, ideas and
new directions. How does this action fit with the Vision?
· Creating a Vision Statement allows a shared understanding of
community desires for the future.
· The Vision encourages the community to consider the future, even a
future that is twenty years distant.
· The Vision provides an anchor in times of conflict and change - a way
of finding common ground and shared values.
· The Vision encourages imagination, recognizing that the direction it
sets will be the realitT of the future.
· The Vision creates energy and enthusiasm for maintaining the
commitment to the Comprehensive Plan.
Vision Statement
The vision for the future of Elk River consists of several themes.
Maintain a distinct identity for Elk River.
· Elk River will keep an identity and character all its own.
· Natural, cultural and historical resources of the community are essential
ingredients of Elk River's identity
· Elk River seeks to grow in a manner that preserves the qualifies of its
"small town" heritage.
Create and maintain strong neighborhoods.
· Neighborhoods are the basic building blocks of Elk River and shape
Vision for
Elk River
Building the Future -A Comprehensive Plan for Elk River
2,1
our views and attitudes about the community.
· Residential development is judged on both aesthetics and function.
Keep Elk River a "safe" place.
· Elk River is a place where people feel comfortable and secure.
· Traffic safety is an important factor in all aspects of community
development.
· A system of streets, sidewalks and trails allows safe and convenient
movement throughout the city.
· Municipal services (police, fire, water treatment) create both the
perception and reality of safety.
Preserve and maintain the environment.
· Elk River seeks to promote clean air and water in the management of
development and the delivery of municipal services.
· Development must be served by well maintained and reliable
infrastructure.
· Development seeks to incorporate and blend the built environment
with the natural environment.
· Rural, undeveloped areas are part of the Elk River environment.
· As Energy City, Elk River seeks to promote sustainable and energy
efficient forms of development.
Make Elk River a complete place.
· Community and economic development policies will seek to attract
employment opportunities and goods and services needed by the
community.
· The expansion of local employment creates more opportunities for
people to bye and work in Elk River.
· Planning and decision making must recognize that the population of
Elk River is not a single commodity. Differences in age, economic
status and ethnicity must be considered in planning for future
development, facilities and services.
· Recreational and cultural opportunities are important elements of a
complete place.
A quality education system attracts and keeps people in Elk River.
Work to achieve the vision.
· Everyone shares responsibility for achieving the vision.
sole responsibility of city government.
It is not the
Building the Future - A Comprehensive Plan for Elk River
Vision for Elk River
2,1~2
· The City will seek collaborative efforts with other partners who have
shared interests in achieving this vision.
All aspects of the Comprehensive Plan work to achieve this vision for Elk
River.
Vision for Elk River
Building the Future - A Comprehensive Plan for Elk River
2,1~3
Comprehensive Plan Initiatives and Policies
Capital Improvements Plan
Future capital improvement plans should be coordinated with the Comprehensive Plan using
the project evaluation criteria described earlier in this element of the Plan.
Sanitary Sewer Capacity
Undertake a more detailed analysis of current plant capacity
Evaluate the options for extending the sewer collection system to the gravel mining area
Conduct prelimin~ studies of plant expansion.
Street System
Establish key street corridors.
Undertake financial planning.
Interchange area planning.
Greenways
The Comprehensive Plan proposes to establish a greenway system throughout Elk River.
Identify key properties
Conduct NRI.
Expand subdivision data.
Establish a fmance plan
Old Town
Designating a land use is only the first step in this effort. Subsequent actions must work to
achieve community objectives for this area.
Focus future planning on a broader area.
Build connections.
Maintain public facilities.
Promote housing maintenance and revitalization.
Intergovernmental Collaboration
The vision for the future of Elk River cannot be achieved without the cooperation and
support of other units of government. Strong working relationships and collaborative
Comprehensive Plan Initiatives and Policies
Page 2
solutions are essential to the success of this Plan. Some of the key governmental elements of
the Plan include:
The quality of local schools is an important element of the Vision. The school
system is one factor in attracting and keeping people to Elk River.
The School District provides recreational facilities for the community.
· School facilities influence traffic patterns and street systems.
· The reuse of school facilities provides important community development
opportunities.
· Many of the key roadways in the Transportation Plan are under the jurisdiction of
Sherburne County.
· The County and School District are major employers in Elk River.
· The Minnesota Department of Transportation controls the development of Highway
10 and Highway 169.
· The Minnesota Department of Natural Resources plays a role in managing land uses
along the Mississippi River.
Intergovernmental collaboration can help build successful solutions in a time frame that
meets local needs and makes the best use of the full range of financial resources available for
each project.
General Land Use Policies
1. Provide a balanced land use pattern that supports a sustainable mix of jobs and
housing.
2. Encourage the integration of small scale neighborhood commercial services within
larger development projects in developing areas.
3. Guide the scale of development to be consistent with surrounding land uses and
general character.
4. Guide commercial land uses to areas that can utilize an appropriately designed
transportation system without infringing upon residential neighborhoods.
5. Allow commercial areas to develop where they can be designed to be compatible
with surrounding land uses.
6. Maintain and encourage the continuation of well-designed employment and business
opporttmities in close proximity to the urban core of the community.
7. Direct future commercial development to sites that support and strengthen the
existing downtown area.
Comprehensive Plan Initiatives and Policies
Page 3
8. Include adequate buffering of commercial and industrial development when adjacent
to non-compatible land uses.
9. Encourage alternative land use patterns that offer opportunities for residents to work
from their home, while maintaining the integrity of the Old Town area and other
commerdal and industrial areas.
10. Support a land use pattern in the Old Town area that mixes residential and
commercial uses and complements the historic downtown character.
11. Require adequate transition and buffers between differing, non-compatible land uses,
making use of natural land characteristics, whenever possible.
12. Encourage "cluster developments" in rural areas in order to preserve the semi-rural
character of the community, help implement the greenway concept, and maintain
private property rights interests.
13. Ensure that development occurring within the undeveloped areas of the urban
service district and within the Urban Reserve area is planned with the intention of
providing munidpal services at some point in the future.
14. Encourage the use of Planned Unit Development (PUD) zoning which allows for
creative residential development that balances the desires of the city and
development community.
15. Require development proposals to consider the impacts on transportation and
natural systems beyond the boundaries of their individual projects.
Transportation
1. Build and maintain a local street system that provides for safe and efficient
movement within Elk River, and minimizes the potential for unintended use of local
streets.
2. Upgrade all primary local streets to hard-surface, all-weather roads.
3. Require that developers provide roads to City standards, prior to or during
development, before the City assumes ownership and maintenance.
4. Work with other jurisdictions to achieve an effident transportation system, good
long range planning, and effective use of finandal resources.
5. Provide a system for non-vehicular movement throughout the City based on
sidewalks, trails and bike lanes.
6. Evaluate the opportunity to create or improve sidewalks, trails and bike lanes in
conjunction with every street improvement project.
7. Support a regional transportation system which offers convenient and adequate
service within and through the area.
Comprehensive Plan Initiatives and Policies
Page 4
Encourage a high level of efficiency, productivity, and quality of service in modes of
transportation between Elk River, surrounding communities and the metropolitan
areas.
9. Consider reducing access points along major thoroughfares and providing alternative
means of individual property access.
10. Provide appropriate collectors and local streets as links to the existing system.
11. Recognize the needs of the central business district by offering flexible parking and
other traffic design standards.
12. Be sensitive to existing residential developments, environmental areas, wetlands,
existing public parks, and open space when building new, expanded or improved
roadways.
13. Support roadway projects that will help alleviate anticipated traffic problems from
roads or corridors that have been identified as being deficient in the transportation
system.
14. Locate industrial development next to adequate transportation systems and provide
transportation systems that complement industrial development.
15. Encourage akemative land use patterns that create the potential for making better
use of alternative travel modes.
16.
17.
18.
Preserve right-of-way through the development process, in anticipation of corridor
needs identified in the Transportation Plan.
Support regional transportation planning initiatives that help further more efficient
traffic flows through Elk River while minimizing assOciated visual and economic
impacts on the community.
Support regional initiatives that provide choices in commuting to regional
destinations.
19. Work cooperatively with regional agencies to plan for roadway improvements that
balance local and regional transportation needs.
20. Operate a pavement management program to ensure good physical condition of all
local streets.
Housing
1. Encourage a mLxuu'e of housing opportunities in terms of costs and size while
encouraging a high degree of architectural and site planning integrity.
2. Review residential housing standards and regulations regularly to ensure that
neighborhoods maintain integrity and avoid deteriorating market value.
Comprehensive Plan Initiatives and Policies
Page 5
Evaluate housing stock on a regular basis to assess the housing conditions and needs
of the community.
Ensure that persons or groups of persons of similar income levels have a wide range
of housing choices available to them, regardless of their race, color, creed, religion,
sex, national origin, marital status, and without regard to public assistance, or
familial status.
5. Provide a Fair Housing Statement to all developers who request approvals from City
Hall.
6. Support the integration of affordable housing into larger housing developments (aka
inclusionary housing)
7. Preserve the integrity and affordability of existing housing stock near or within the
Old Town area.
8. Provide ample opportunities to accommodate the full spectrum of life-cycle housing.
9. and well
Work with homeowner's associations to promote financially stable
maintained neighborhoods.
10. Focus public actions on housing needs not met by the market place.
Utilities
1.
Coordinate preparation of utility master plans for municipal sanitary sewer, electric,
storm sewer and water systems with the Comprehensive Land Use Plan and
accompanying development projections.
2. Encourage the full utilization of existing infrastructure systems by supporting infill
development within the existing urban service area.
3. Ensure adequate capacity within, and support maintenance and improvements of
older facilities in and around, the Old Town area.
4. Ensure capacity is reserved for potential high demand industrial or office uses that
may provide positive economic development oppommities to the community.
5. Maximize the use of rainwater gardens, wetlands or other natural systems to manage
storm water runoff in an environmentally sound manner and reduce unnecessary
construction of storm sewer infrastructure.
Provide storm sewers to those areas no longer adequately drained by natural systems.
Apply fair and equitable assessment written polities for the extension of water and
sewer lines to accommodate new development. The policy shall provide for
equitable assessment of the improvement costs while protecting the City's taxpayers
and financial commitment.
Comprehensive Plan Initiatives and Policies
Page 6
8. Evaluate the impacts of all commerdal development proposals on the munidpal
utility system.
9. Allow the extension of sewer and water infrastructure systems only after presently
serviced areas have been developed to near capacity.
10. Develop and maintain, on a continuing basis, a five year capital improvements
program and budget for the development, expansion, upgrade, and replacement of
municipal systems (sewer, streets, water, storm sewer), municipal equipment (street
maintenance, fire, office space), and park and recreation.
11. Coordinate with Sherburne County the jurisdictional responsibility of the current
county ditch system.
12. Require that all developers provide utilities to city specifications before the City
assumes ownership and maintenance responsibilities.
Parks
See Park Element Goals and Objectives
Environmental Resources
1. Evaluate all proposals for industrial development in order to minimize the impacts
on munidpal and natural systems.
2. Encourage preservation and protection of shoreland, wetlands and drainage ways.
3. Restrict inappropriate alteration of significant natural contours and soils.
4. Preserve natural systems through acquisition, dedication or easements.
5. Require that development plans demonstrate a compatibility with natural features
and systems.
6. Establish tree preservation and protection standards to maintain the integrity of the
City's natural vegetation.
7. Preserve public access to wetlands, lakeshore or other natural preservation areas
through purchase, easement, dedication or other instrument.
8. Work with developers to preserve existing natural open space areas and areas that
help implement the Greenway concept.
9. Develop, preserve and protect environmental resources within the area, such as
forest, wetlands, water bodies and shorelines, with respect to open space,
recreational uses, water and air quality, and natural ecosystems.
10. Encourage the preservation of shorelands, wetlands, and drainage ways.
11. Encourage the preservation of natural contours and soils, and preservation of natural
vegetation.
Comprehensive Plan Initiatives and Policies
Pa§e 7
12. Preserve natural systems through acquisition, dedication, or easements.
13. Require that development plans demonstrate a compatibility with natural features
and systems.
14. Work with developers to preserve existing natural open space areas.
15. Allow the transfer of densities on a ske in order to preserve site features that
otherwise might not be preserved.
16. Encourage energy effident housing and business construction and operations.
17. Encourage urban design strategies that utilize the natural environment to save
heating and cooling costs (solar energy), snow removal expenses (living snow fence)
or storm sewer development (rainwater gardens, cisterns, rooftop gardens.)
18. Use the development process to obtain information about natural land features.
Community Facilities
1. Provide adequate public facilities to protect the health, safety and welfare of the
C ornlTlunity.
2. Cooperate with regional agencies to achieve efficiencies in the provision of services
that may cross jurisdictional boundaries.
3. Cooperate and facilitate the planning and development of school facilities to serve
growth in the community and better integrate school facilities with neighborhoods.
4. Work with the School District to reuse facilities no longer needed for public
education.
5. Support collaborative solutions for local facility needs.
Community Development
1. Prioritize the allocation of community resources towards inffll development,
redevelopment of blighted or depressed areas, and revitalization of existing
neighborhoods.
2. Promote the creation of a variety of new empl6yment opportunities that allow
people to live and work in Elk River.
Community Image
1. Utilize the Mississippi River as an attraction and focal point for the downtown
2. Adhere to controls for the size and placement of signage and landscaping for
commercial applications within the City limits.
3. Establish a common theme for design standards and other infrastructure
improvements to strengthen the character of the Old Town area.
Comprehensive Plan Initiatives and Policies
Page 8
4. Encourage the clustering of industrial uses to avoid the appearance of "strip" or
scattered industrial operations along the City's major roadways.
5. Establish controls for the size and placement of signage, screening, noise and other
visual concerns for industrial operations within the City limits.
6. Encourage well designed buildings that are visually consistent with the surrounding
o
Preserve, maintain, and/or strengthen the cultural, social, historical, physical and
visual qualities unique to the community.
Work with other public and private agencies to identify, preserve and protect sites of
historical, architectural, and cultural significance.
Park System Mission, Goals
Park System Mission
parks, trails avd faxilities that preserte unique ~s, where possible, and
that are well ~ to neighkvtxxzts, places of work, and corrvrmm
Goals
Provide and maintain park, trail and recreational facilities that
meet residents' needs within the community.
Preserve, enhance and protect environmental resources and
natural ecosystems, such as forests, native plant communities,
wetlands, water bodies and their shorelines.
Preserve, enhance, and protect the cultural, social, historical
and scenic qualities unique to the Community.
Promote ownership of park development and maintenance
through collaboration of the City and volunteers.
Develop public and private collaborations to assist in funding
the acquisition and development of parks, trails and facilities.
Emphasize the importance of connecting parks and open space
resources to promote public access and develop a broader user
base.
Transportation Plan Goals
A list of roadway improvement actions was developed for Elk River by examining the existing
and/or forecast traffic operations, safety, and functional class issues and deficiencies identified in
the previous chapters. Improvement actions were developed that are expected to alleviate these
issues and generally improve traffic mobility and safety. Table 10 describes the improvement
actions recommended and the objectives that each action is expected to achieve.
TABLE I
SUMMARY OF RECOMMENDED ROADWAY IMPROVEMENT ACTIONS
Roadway Improvement Action Recommendation Objective
Work with Mn/DOT to implement improvements identified · Eliminate/reduce existing
TH 10 from east in TH 10 CMP or to develop a new improvement vehicle crashes and
city limits to west alternative(s). Likely improvement candidates include congestion.
city limits, conversion to 6-lane expressway or 4-lane freeway. A TH 10 · Eliminate/reduce future
bypass is not a likely option, congestion.
Work with Mn/DOT to implement improvements identified · Eliminate/reduce existing
TH 169 from north in TH 169 CMP or to develop a new improvement vehicle crashes and
city limits to south alternative(s). Likely improvement candidates include a 4-lane congestion.
city limits, freeway. A TH 169 bypass is apotentid option. Bypass may · Eliminate/reduce future
join existing TH 169 alignment in northern Elk River. congestion.
· Eliminate/reduce existing
CSAH 1 Expand roadway to a 4-lane divided arterial with right and left vehicle crashes.
(Proctor Ave) from turn lanes at key intersections. · Eliminate/reduce expected
CR 77 to TH 10 future congestion.
CSAH 13 Expand roadway and add right and left mm lanes at key
(Twin Lakes Rd) intersections. Number of additional lanes constructed may · Eliminate/reduce existing
from Twin Lakes vary depending on completion of adjacent roadway vehicle crashes and expected
Road to CR 31 improvements. Conduct a corridor study to specifically future congestion.
(Viking Blvd) determine what improvements should be implemented.
Expand roadway and add right and left mm lanes at key
CR 31 intersections. Number of additional lanes constructed may
(Viking blvd) vary depending on planned improvements for continuation of · Eliminate/reduce expected
from CSAH 13 to roadway in Anoka County. Conduct a corridor study to future congestion.
east city limits specifically determine what improvements should be
implemented.
Transportation Plan Goals
Page 2
TABLE 10 (cont.)
SUMMARY OF RECOMMENDED ROADWAY IMPROVEMENT ACTION
Roadway Improvement Action Recommendation Objective
· Expand existing system of
165t~ Ave from TH Classify as a Minor Collector functionally classified roads
10 to Jarvis St to improve mobility.
Convert School Street in to a Mane roadway with a center left · Eliminate/reduce existing
School Street from turn lane and implement intersection improvements identified vehicle crashes and
CSAH 1 to TH 169 in previously completed safety study, congestion.
Classify roadway as a Minor Arterial and develop east-west
connections into Big Lake Township and Anoka County.
CR 33
Roadway could be direcdy connected to 211th Avenue in Big · Expand existing system of
(Ranch/205th/209th) Lake Township and CR 31 (Viking Blvd) in Anoka County. functionally classified roads
from west city Coordination efforts with both Big Lake Township and to improve mobility and
limits to east city possibly safety (if improved).
limits Anoka County would be needed. As indicated in Table 3,
consider completing a safety study. Safety study may
recommend improvements.
· Eliminate/reduce existing
CSAH 12 vehicle crashes and expected
(181~ Ave) from Expand roadway to a 4-lane divided arterial with right and left future congestion.
CSAH 13 to east turn lanes at key intersections. · Provide design continuity
city limits with roadway to the east.
Expand roadway and add right and left turn lanes at key
CR 30 intersections. Number of additional lanes constructed may
(Mississippi/Main) Eliminate/reduce expected
vary depending on traffic volumes forecast and the "context" o
from Naples St to provided by the adjacent land use. Conduct a corridor study future congestion.
TH 10 to specifically determine what improvements should be
implemented.
Expand roadway and add right and left turn lanes at key
CR 77 intersections. Number of additional lanes constructed may
(Proctor Ave) vary depending on completion of adjacent roadway · Eliminate/reduce expected
from CSAH 1 to improvements and "context" provided by adjacent land use. future congestion.
CR 33 Conduct a corridor study to specifically determine what
improvements should be implemented.
· Expand existing system of
CR 35 Classify roadway as a Minor Collector. As indicated in Table functionally classified roads
(192na Ave) 3, consider completing a safety study. Safety study may to improve mobility and
from CR 72 to CR recommend improvements, possibly safety (if improved).
Transportation Plan Goals
Page 3
TABLE I 0 (cont.)
SUMMARY OF RECOMMENDED ROADWAY IMPROVEMENT ACTION
Roadway Improvement Action Recommendation Objective
193rd/198th Identify future corridor alignment for construction. Create an · Expand existing system of
Corridor from maproved continuous east-west roadway that would cross over functionally classified roads
CSAH 1 to CSAH TH 169. Classify roadway as a Major Collector to improve mobility.
13
CR 44 · Expand existing system of
(Meadowvale Rd) Classify roadway as a Minor Collector. Roadway design functionally classified roads
From CSAH 1 to (shoulder and lane width) may be improved, to improve mobility.
TH 10
· Expand existing system of
Tyler St Complete corridor study to determine if and how Roadway functionally classified roads
FromcR 33CSAH 13 to design (shoulder, lane width, access) should be improved, to improve mobility.
School St/Elk
Hills Dr Identify future corridor alignment extensions for construction. · Expand existing system of
Extensions Create an improved continuous east-west roadway that would functionally classified roads
From CR 44 to CR cross over TH 169. Classify roadway as a Major Collector to improve mobility.
77 and from Line
Ave to CSAH 13
CR 32/CR 72/ Create a continuous north-south roadway that would cross the · Expand existing system of
/Zebulon/Waco Elk River and connect to Waco Street at the current TH 10 functionally classified roads
From north city intersection. Classify roadway as a Major Collector. to improve mobility.
limits to CR 30
Identify future corridor alignment for construction. Expand
existing roadway to a 2-lane paved roadway with left and right
CR 40 mm lanes at key intersections and shoulders. Construct a · Expand existing system of
(Cleveland/Jar, As) roadway connection between CSAH 12 and 165th Ave/Jarvis. functionally classified roads
from CSAH 13 to Classify road segment as a Minor Arterial. Roadway upgrade to improve mobility.
TH 10 should coincide with adjacent development. Connection to
165th/Jarvis is dependent on redevelopment of Cargill
holdings.
· Expand existing system of
CSAH 1 Classify roadway as a Minor Arterial. As indicated in Table 3, functionally classified roads
(Elk Lake Rd) consider completing safety study. Safety study may lead to to improve mobility and
from north city roadway improvement recommendations, possibly safety (if improved).
limits to GR 32
Transportation Plan Goals
Page 4
TABLE I 0 (cont.)
SUMMARY OF RECOMMENDED ROADWAY IMPROVEMENT ACTION
Roadway Improvement Action Recommendation Objective
CSAH 21/221~t Identify future corridor alignment for construction. Create a
continuous east-west roadway that would cross and · Expand existing system of
Ave from west to ftmcdonally classified roads
interchange with TH 169. Roadway may connect to CR 33.
east city limits Classify roadway as a Major Collector or Minor Arterial. to improve mobility.
Create a new connection between 171st Ave and 165th Ave on
171~t Ave to 165t~ corridor located between TH 10 and the BNSF Railroad · Expand existing system of
Ave Connection tracks. This connection would be dependent on the functionally classified roads
development of the Cargill holdings, to improve mobility.
Identify future corridor alignment for construction. Create a
Tyler St Extension · Expand existing system of
new connection north from existing CR 33 to CSAH 21 and
from CR 33 to new classify as a Major Collector. Connection probably should not functionally classified roads
CSAH 21 roadway be built unless a new CSAH 21/221~ Ave connection is built, to improve mobility.
CR 77 Extension Identify future corridor alignment for construction. Create a
new connection north from existing 213:h Ave to 221~ Ave · Expand existing system of
from 213th Ave to and classify as a Major Collector. Connection probably functionally classified roads
new CSAH 21 should not be built tmless a new CSAH 21/221st Ave to improve mobility.
roadway connection is built.
Consider restriping existing bridge span in future to a 4-lane
CR 42 Bridge facility if bridge width permits. A second bridge span could
be considered to widen facility to 4-lanes. Bridge · Eliminate/reduce expected
from CR 30 to improvements would be dependent on corresponding future congestion.
south city limits roadway improvements on Main Street and CSAH 42 in
Otsego.
Chapters 1-3 create a case for implementing a number of roadway improvement actions by
documenting existing and forecast future roadway conditions. Chapter 4 describes and
prioritizes the roadway improvement actions developed. Chapter 5 provides guidance on how
the city should proceed with some of their day-to-day transportation planning functions. This
chapter provides general recommendations on what Elk River should do in order to successfully
implement the roadway improvement actions identified. The general recommendations are as
follows:
Complete the corridor studies identified in Chapter 4. In order to determine more
precisely what types of roadway improvement actions should be implemented, corridor
studies on many of the major roadways in the city should be completed. In general, these
studies would look at environmental, land use, engineering, and financial
Transportation Plan Go~ls
Page S
constraints/opportunities as well as consider public input to determine how many lanes can
be added to exisdng roadways and where new roadway alignments should be located.
Work with Mn/DOT, Sherburne County, and neighboring jurisdictions. The nature of
furore improvements to TH 10 and TH 169 in Elk River will likely have enormous impacts
on how the city functions and grows. Mn/DOT, having identified these roadways in Elk
River as high and medium priority interregional corridors, has already developed future
highway improvement concepts as part of the TH 10 and TH 169 Corridor Management
Plans.
Also, improvement actions implemented on TH 10 and TH 169 in adjacent communities will
likely affect future highway improvements in Elk River. For example, TH 101 in Otsego will
be converted to a freeway by 2006. Mn/DOT has recently completed an environmental
scoping document defining a potential corridor for a future TH 10 bypass of Big Lake. The
city of Ramsey is pursuing a future alignment change and freeway conversion for TH 10. As
these actions are implemented, they begin to narrow the improvement actions that can be
taken by Elk River. The city should be proactive and work with Mn/DOT and neighboring
communities on deciding what future improvements might take place on these two highways.
Working with Sherburne County on future roadway improvement actions is equally
important to working with Mn/DOT. Several of the major roadways identified for
improvement in the city are under county jurisdiction. It is crucial for the city to work with
the county to determine the timing, funding, and nature of these improvements. Also, Elk
River should work with Sherburne County to determine if some existing and future city
roadways should become county roadways and vice versa. Roadway jurisdiction affects how
roadways function and how they are maintained and financed.
Make the public and developers aware of the transportation plan. As developers
approach Elk River with development proposals, city staff and officials should examine the
transportation plan to see if the proposals are consistent with the plan. They should make
the plan's improvement actions visible and readily available to developers and interested
members of the general public so they can make decisions in accord with the plan. If
stakeholders know what is in the plan in advance of making key decisions, opposition to the
plan should be minimized.
Use available planning and regulatory tools to help implement the plan. The city's
authority over planning and zoning can help guide the implementation of the transportation
plan. For example, the city can use official mapping to identify the corridor location of
future roadways. It can also request that developers dedicate a portion of their land for
roadway fight-of-way. Another example that could be used if appropriate is interchange area
planning and zoning. If it is determined that all or portions of TH 10 and TH 169 should be
converted to freeway, the city could develop interchange area plans and/or overlay zones to
guide development around future interchanges. That way, future development along TH 10
and TH 169 would have to be consistent with the respective improvement plans for the
highways.
In addition, Section 5.1 of the plan discusses access and signal spacing guidelines that should
be utilized when determining future access and signal locations on major roadways in the city.
This section also refers to sample access management ordinances that are found in Appendix
Transportation Plan Goals
Page 6
C of this plan. With this information as a guide, the city should implement an access
management ordinance so that traffic safety and mobility can be maintained on their
functionally classified road system (arterials and collectors).
As stated in the introduction to this plan, the main purpose of the transportation plan is to assist
the city in determining what roadway infrastructure the city may need to serve their future vision
and to maintain a high level of traffic safety and mobility. If the information and
recommendations found in this plan are used and followed, then that goal should be achieved.
Identify future corridor and potential
westerly connection to Big Lake Township.
~ ~ ' Identify corridor for
future connection.
Identify corridor to
connect CSAH I
to Tyler St.
Identify corridor for -~
~i ~!i~'
future c°nnecti°n' / ~ ~L~) 't ~
Identify corridor for
future connection.
~' 209th Ave //
Identify corridor for
future connection into
Anoka Count.
Identify corridor Identify corridor to
for future connect CR 44 to
connection. CR 77.
~Recommended Improvement Actions
m Roadways Identified
for Improvement
i Land Area Containing Future Roadway
Note: See Table I 0 in Transportation Plan for
more detailed improvement descriptions.
Identify corridor to
connect School St
to CSAH 13.
Identify corridor for
future connection to
Jarvis (if Cargill land
is developed).
0.5 0 I 2
~ Pfiles
Improve roadway and develop east-west
connections into Anoka County and Big
Lake Township that were established
during short-term time frame.
1~ ~/ 221st Ave
Expand roadway section
and add turn lanes at key
intersections. Conduct
corridor study to determine
improvements.
Create a continuous east-west roadway
connecting CSAH I to Tyler St using
corridor identified during short term
time frame.
Implement road
improvements
established with
Mn/DOT during
the short-term
time frame.
Create new CR 33
connection to Viking
Blvd that was identified
during the short term
time~ frame.
Ave
Conduct corridor
study to identify
potential
improvements.
Create 2-lane
paved roadway
with turn lanes
at key intersections.
Classify as Minor
Arterial.
Examine crashes to
determine if safety
study is needed.
Classify roadway as
a Minor Collector.
-t[School St i
Create connection identified
during the short term time
frame between School St
and CSAH 13.
Classify roadway as a
Minor Collector. Make
road section improvements
as needed.
Create connection
identified during the
short term time frame
between CR 44 and
CR 77.
Expand roadway section
and add turn lanes at key
intersections. Conduct
corridor study to determine
improvements.
Expand roadway to
4-lane divided and I
add turn lanes at I
key intersections ]
Recommended Improvement Actions
m Roadways Identified
for Improvement
, , Land Area Containing Future Roadway
Note: See Table I 0 in Transportation Plan for
more detailed improvement descriptions.
dement road improvements
established with Mn/DOTduring
the short-term timeframe.
I 0.5 0
I
2
I Miles
Create connection
identified during
short term time frame.
Create connection
identified during
short term time frame.
Create connection identified
during short term time frame.
Create a continuous east-west roadway
using corridor identified during short term
time frame. Classi~ roadway as a collector
or arterial.
,! ~.~.~J Create a connection
.." from CSAH 21 to CR
l~ ~ i ~133 using corridor
~! ~, ~ identified during short
· ~ i t term time frame. Classi~
, <~t as a ~alor Collector.
Create a connection between
171 st Ave and 165th Ave.
Corridor is already identified.
175th Ave
rRecommended Improvement Actions~
I Roadways Identified
for Improvement
[ i Land Area Containing Future Roadway
Note: See Table 10 in Transportation Plan for
more detailed improvement descriptions.
Create a 2-lane paved roadway with
turn lanes connecting TH 10 to
CSAH 2. C assi~ as Minor Arterial.
Jl
0.5 0 I
2
I Miles
City of
River
FINANCIAL MANAGEMENT
PLAN
Elk River, Minnesota
Adopted: January 28, 2002
CONTENTS
INTRODUCTION
KEYS 6
Growth and Development 6
Le~slarive Action .................................................................................................... 6
Non-Tax Revenues ................................................................................................... 7
Capital Investment ................................................................................................... 7
General Fund ............................................................................................................ 8
ACTIONS 10
CIP ..............................................................................................................................
Facilities .................................................................................................................... lC)
Storm Sewer ...................................... : ...................................................................... 11
?avemenr Rehabilitation ...................................................................................... 12
GASB 34 .............. ...12
Bond Rating .............................................................................................................. 12
U rilities ...................................................................................................................... 13
Property Taxes . . ..... 13
Landfill Surcharge .................................................................................................. 14
POLICIES 16
1. Revenues .................... 16
2. Property Taxes ............................................................................................... 17
3. Utilities .................. 17
.4. Investments ........................................................... ~ ........................................ 18
5. Purchasing ...... . .20
6. Budgeting ........................................................................................................ 21
7. Accounting, Auditing and Financial Reporting ................................. 22
8. Reserves .......................................................................................................... 23
9. General Fund Balance ................................................................................. 23
!0. Capirallnvesrmenr ................... , ............................................. ~. ................ :..24.
11. Debt ............... .. 25
DATA 28
Trends ........................... 28
Projections ............. 45
Capital Improvements .......................................................................................... 47
Page
2
Financial management is the on-going effort to ]~alance the competing forces of
revenues and expenditures. The revenue side of the equation focuses on
affordabiliry. The expenditure side addresses community needs and desires.
Financial management attempts to make the best use of available revenues to
serve the community. Planning examines the current and future ability to meet
this objective.
Elk Privet has a long history of excellent financial management. The City's
financial condition is sound. The City has managed its finances in an
environment of community and legislative change. If current financial practices
work, why plan?
Comprehensive financial planning brings several benefits:
Long-term view
Many aspects of financial management cover a limited rime frame. Annual
financial reports look back one year. Operating budgets plan for the upcoming
},ear. Effective financial planning requires a broader view. Many important
trends evolve over a number of years. Looking back at a single year often misses
the context of changes. Looking into the future creates increases the ability to
identify opportunities and obstacles that he ahead.
Build a better understanding
Municipal finance is complicated and ever-changing. The planning process
provides an opportunity ro learn and to ask questions. A better understanding
of finance leads to better decisions.
Look at whole puzzle, not just pieces
Many elements of municipal finance are interconnected. Capital improvements
may affect operating costs. Use of reserves for one project may yield an
unexpected gap for another. Financial planning creates a means for identifying
these relationships and considering the ripple effects of financial decisions:
Increase continuity
Financial management often relies on informal pohcies - an understanding
between staff and City Council on financial practices. In the short-term, this
approach can be very effective. It is difficult to maintain over the long run as
staff and Council members change. Written plans and policies provide a
common understanding and basis for continuity.
During 2001, the City of Elk River has undertaken a financial management
planning process. Through a series of interactive workshops, the City Council
examined the key financial aspects of municipal government. The workshop
topics were (1) Trends and Projections, (2) Operating Projections, (3) Capital
Improvements, and (4) Policies. The results of this planning process are
summarized in this report. The results fall into four key financial strategies:
INTRODUCTION
Page
4
Financial management is the on-going effort to balance the competing forces of
revenues and expenditures. The revenue side of the equation focuses on
affordability. The expenditure side addresses community needs and desires.
Financial management attempts to make the best use of available revenues to
serve the community. Planning examines the current and future ability to meet
this objective.
Elk River has a long history of excellent financial management. The City's
financial condition is sound. The City has managed its finances in an
environment of community and legislative change. If current financial practices
work, why plan?
Comprehensive financial planning brings several benefits:
,,%
Long-term view
Many aspects of financial management cover a limited time frame. Annual
financial reports look back one year. Operating budgets plan for the upcoming
},ear. Effective financial planning requires a broader view. Many important
trends evolve over a number of years. Looking back at a single year often misses
the context of changes. Looking into the future creates increases the ability to
identify opportunities and obstacles that he ahead.
Build a better understanding
Municipal finance is complicated and ever-changing. The planning process
provides an opportunity to learn and to ask questions. A better understanding
of finance leads to better decisions.
Look at whole puzzle, not just pieces
Many elements of municipal finance are interconnected. Capital improvements
may affect operating costs. Use of reserves for one project may yield an
unexpected gap for another. Financial planning creates a means for identifying
these relationships and considering the ripple effects of financial decisions.
Increase continuity
Financial management often relies on informal policies - an understanding
between staff and City Council on financial practices. In the short-term, this
approach can be very effective. It is difficult to maintain over the long run as
staff and Council members change. Written plans and policies provide a
common understanding and basis for continuity.
During 2001, the City of Elk River has undertaken a financial management
planning process. Through a series of interactive workshops, the City Council
examined the key financial aspects of municipal government. The workshop
topics were (1) Trends and Projections, (2) Operaning Projections, (3) Capital
Improvements, and (4) Policies. The results of this planning process are
summarized in this report. The results fall into four key financial strategies:
INTRODUCTION
Page
4
Identify the Keys that will shape the future financial condition of the Cit~7.
Describe Policies that institutionalize a decisiontmaking framework and provide
continuity.
List Actions to be taken to address financial management issues identified in the
planning process.
Compile Data to serve as a reference point for future planning and decisions.
Page
5
The financial management planning process in Elk RAver has been called "Key
Financial Strategies". Through this process, several issues areas emerged as key
factors for the financial future of ELk RAver.
No single factor will influence the future of Elk RAver more than. growth.
· Growth creates property valuation.
· Growth adds homes, businesses, and institutions that produce the
demand for municipal services and [acihdes.
· The City builds streets, sanitary sewer, water, and electric systems
needed to serve new development.
· Devdopment creates capital charges and user fees used to support debt
and capital investment for utility systems.
A key financial strateg-y for the City will be forecasting future growth and
understanding the factors that may cause changes in these projections.
State Law controls many elements of city finance. The results of the 2001
Legislative Session showed how legislative actions affect city finances and impair
long-term planning.
The lack of legislative stability increases the importance of planning. Although it
is impossible to predict future statutory constraints, planning forces the City to
consider how State Law influences decision-making. It also provides an
opportunity to create contingency plans as a buffer to adverse legislative change.
· Property Tax Changes. Given the slo~ving of the Stare economy and the
extent of past class rare compression, it is difficult ro imagine further
reductions in tax capacity. In 2001, we were reminded of the speed,
magnitude and unpredictability of changes in the property tax system.
Forecasts of future property values should use conservative assumptions.
Levy Limits. The current law imposes levy bruits for only the next two
years. The on again/off again nature of levy Emits shows the risk of
planning for a future without some form of limitation on the City's
ability to levy property taxes.
New Limitations. The Legislature has periodically considered new
lirmtations on the ab&try of cities to levy taxes or incur debt. The most
common form of new lirnitanon is a reverse referendum petition.
Residents could petition a city to conduct a referendum on certain
matters.
Non-Tax Revenues. The impacts of Legislative change are not limited to
property taxes. In 2001, the Legislature reduced HACA, but increased
Local Government Aid allocations to Elk River. It is impossible to
predict the future of State Aid. The City should anticipate discussions
KEYS
Growth and Development
Legislative Action
Page
6
on legislation that affect other traditional local revenues. Caps on
building permits fees, connection charges, and other development fees
could significantly impact Elk River's financial capacity.
A financial strength of the City is the diversity of its revenue base. This diversity
has allowed the City to keep pace with services and facilities without
overburdening the taxpayer.
Landfill revenues. Revenues collected from the landfill surcharge have
been an essential part of capital improvement finance. The long-term
status of this revenue is one of the most important financial planning
issues facing the City. When this revenue goes away, the City may face
the need to delay capital improvements and/or to increase use of other
revenues.
Development fees. Elk River derives a variety of revenues directly from
new development. A slowdown in the pace of development reduces
revenues and presents financial consequences. Some development
revenues (i.e. - building permit fees) help to support the General Fund.
Connection charges are used to pay capital improvements and debt. The
City should continue to forecast future gro;vth and to monitor growth
capacity.
Special assessments. The ability to assess the costs of public
improvements to benefited properties reduces the demands on property
taxes, utility revenues, and other sources.
Tax increment. The City has been able to use tax increment financing to
encourage development and finance infrastructure. The 2001 changes in
the property tax system will reduce the amount of tax increment
revenue received by the City. The capacity of tax increment financing to
support current obligations and new initiatives is a 'key financial
strategy.
Capital investment was a key topic of the financial planning process. The ability
to provide capital improvements in a timdy and affordable manner is an essential
function for the City. The planning process illustrated several key financial
strategies for capital investment:
Monies from the landfill surcharge are needed to finance planned
expansions of the Library and City Hall. Surcharge revenues should be
earmarked for this purpose.
The Government Buildings Reserve does not contain enough money to
support al2 potential facility needs. In addition to the Library and City
Hall projects, other potential facility investments include one or more
fire stations, community center, second liquor store and ice arena
Non-Tax Revenues
Capital Investment
Page
7
improvements. Funding plans for each of these projects is needed
make most effecnive use of revenues and reserves.
The City has created a Pavement Management Program to provide for
the reconstruction of the municipal street system. CurrenQy, the
Program draws funding from the landfill surcharge, assessments to
benefiting properties and general property taxes. Careful planning will
be needed to mimrnize the impacts on property taxes.
It is anticipated that utility reserves and annual revenues will be used to
pay for the related costs of street reconstrucnon projects. Planning for
sewer, water and electric system improvements must be coordinated
with the Utilities Coramission.
The City needs to create a long-term plan for funding construction and
maintenance of the storm sewer system. Some money has been set aside
in the Storm Sewer Project Fund. The current situation does nor provide
an ongoing source of revenue or a means of Borrowing. If a storm water
utility is not acceptable, then the City has three alternatives: (1)
establish one or more storm sewer improvement districts; (2) assess 20%
or more of the improvement costs to benefited properties; or (3)
reallocate other revenues and undertake on a pay-as-you-go Basis.
The City needs a long-term plan for funding the acquisition and
development of the municipal park system. Monies from park
dedication fees and the NSP/RDF Fund are available for this purpose.
The City can borrow for this purpose upon obtaining voter approval to
issue bonds or proceeding under M.S. Chapter 429 to issue improvement
bonds.
Future facility and infrastructure projects increase the potential for
capital improvements to compete with the General Fund for limited
property tax revenues. Careful planning will help the City meet capital
and service needs while managing the tax impacts.
The General Fund is the heart of City financial operations. The General Fund
finances most non-utility public services. The General Fund produces the
largest demand on property taxes. Planning for the General Fund has led ro the
following key financial strategies:
Personnel and related costs are the largest source of General Fund
expense. The addition of staff will be a key to future expenditures. It is
anticipated that the City will add a public works employee or police
officer every other year to maintain adequate service levels. In the near
term, the City has budgeted for additional staffing in cable 'l-V,
information management, and finance. Planning for these additions and
their expense helps to manage the financial implications.
General Fund
Page
Contracts for service provide an alternative approach. The planning
process identified custodial and engineering services as areas for further
study.
Revenues are the primary constraint to long-term planning. Services
cannot be provided without adequate revenues. Making ~ffecrJve use of
non-tax revenues will buffer the City from legislative change and
enhance the ability to meet service needs.
Growth, legislative change, inflation, and other factors are beyond
control of the City. These uncertainties increase the need to maintain
strong reserves in the General Fund.
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9
Financial plarming is a process, not an event. The preparation o[ a [mancial
management plan and the adoption of policies lay the foundation. The City
builds on this foundation by underta 'ldng additional financial planning actions
set forth in the plan. ,
This section lists the financial planning Actions to be undertaken by the City.
Some actions will be undertaken in 2002. Other actions have longer time frames.
Progress on the Actions should be reviewed annually as part of the budgeting
process. Completed actions can be removed. Actions in progress can be
updated. New actions can be added.
ACTIONS
ClP
Recommended
... Action
Proposed Timetable
Comments
Update and adopt a five-year capital improvements
plan.
Prepare in conjunction with annual operating budget
beginning in 2002.
The City collects much of the data required for a CIP,
but has not prepared a comprehensive plan. The CIP is
a document that will evolve over time. The initial CIP
should be a simple and functional document. The initial
collection of project data and the organization of the
Plan can be a time consuming task. In subsequent
years, data collection becomes more routine and
additional details can be added.
The follov4ng steps can be taken to initiate the CIP
process m 2002:
· Determine the types of capital improvements and
the minimum cost to be included in the Plan.
· Determine the information required for each
project.
· Determine if projects v¢21 be prioritized and, if so,
the method to be used.
· Create aproject worksheet.
· Establish a calendar for preparation and
submission of project worksheets by Department
Heads.
Facilities
Recommended
Action
Proposed Timetable
Update plans for facilities improvements and funding,
specifically addressing the use of Government Buildings
Reserve.
Prepare in conjunction with Capital Improvements
Plan.
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10
Comments
Recommended
.,.,Action
Proposed Timetable
Comments
One key financial strategy is that financial decisions are
o[ten interrelated. This strate~ is especially true for
facilities. The financing of building projects often
compete for the same, limited funding sources.
The expansion of the City Hall Campus sends ripples
into other parts of City finance. The use of reserves will
reduce monies available for future projects. Debt
incurred for the project creates obligations for property
taxes or other revenues.
Establish storm sewer improvement district to finance
activities under the Surface Water Management Plan.
Estabhsh district(s) in 2002 and consider initial tax
levy in 2002 for taxes payable 2003.
Through the financial planning process, the use of a
storm sewer improvement district was identified as the
best option for financing the construction and maintain
of the storm sewer system. The steps to be undertaken
in 2002 include:
Storm Sewer
· Contact County (or State) to determine if levy for
district without bonds is subject to levy
limitations. I£ levy 1Lrmts apply, consider corrective
actions in Legislature.
· Determine if one or more districts will be
established.
· Obtain the tax capacity value of property with the
district(s).
· Determine projects funding needs in years 2003
through 2007.
· Estimate other public and private revenues
available to finance improvements.
· Undertake process to establish district(s),
pursuant to Minnesota Statutes, Sections 444.17
through 444.21.
· Include levy (if an~) m steps for taxes payable
2003.
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11
Recommended
Action
Proposed Timetable
Comments
' ' ' ': ReEommended
Action
Proposed Timetable
comments
Recommended
Action
Proposed Timetable
Comments
Create and adopt a funding plan for Pavement
Rehabilitation Program.
Finalize funding plan prior to initial public heanngs,
currently scheduled for September 2002.
The Pavement Rehabilitation Report proposed
improvements and assessments. This information needs
to be expanded into an overatl funding plan to include
issues raised in the financial planning process:
· What is the projected 12/31/01 balance in the Street
Improvement Reserve Fund?
· WiLl monies in the Reserve be needed for any other
purposes?
· How much of the LandfL12 Surcharge w~ be
committed to this Program?
· W21 the City issue bonds to pay for annual
improvements and does the $5,000/unit proposed
assessment exceed the 20% threshold needed to
issue G.O. Bonds?
· WiLl the City establish a permanent improvement
revolving fund for pavement rehabilitation?
· How will the City f~ance rehabLlkadon of sanitary
sewer lines?
· Is the Utilities Commission prepared to finance
water and electric system improvements related to
pavement rehab~tadon projects?
Initiate process for compliance with GASB 34.
Complete compliance actions by 12/31/03.
It is likely that planning for comphance with these new
financial reporting requirements will be influenced by
the demands of other financial management projects.
One way to stay on track is to hst the steps requLred for
comphance and track progress for each step.
Devdop strategies for obtaining a rating upgrade.
Undertake in 2002 in conjunction with debt issuance.
The City's current bond rating includes positive
Pavement Rehabilitation
GASB 34
Bond Rating
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12
Recommended
Action
,,', Proposed Timetable
Comments
RecOmmended
Action
Proposed Timetable
COlTllilents
outlook. The oudook signals the potential for raring
changes in the foreseeable future. Two key steps in
seeking a rating up,adc will be:
Scheduling a visit to Elk River by a Moody's
analyst.
Evaluating options for mitigating the impacts of
the overlapping debt of the Elk River School
District.
Review and coordinate key financial strategies with
Utilities Commission.
2002 and ongoing.
Several aspects of financial management have direct
implications for the Municipal Utilities.
· Ongoing review and adjustment of water system
capital charges.
· Ongoing review and adjustment of water system
user fees.
· Fund balance amounts and policies for water and
electric funds.
· Issuance of debt andbond rating.
· Plans for funding water and electric system
improvements in conjunction with pavement
rehabilitation projects.
Prepare updated projections of property valuation and
tax rares.
First half of 2002.
The 2001 Legislature made sig-mficant changes to the
property tax system. Final tax capacity values and tax
rates will be known soon. This information is needed to
make revised projections of future tax rates. The
questions to be answered include:
· Will levy limits in 2003 and potentially beyond
impair the ability of the City to meet current and
future staffing needs?
· What are the tax rate implications of tax levies to
support for capital improvements?
· Is the projected total tax rate (operations plus
debt) acceptable?
Utilities
Property Taxes
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13
Recommended
Action
Proposed Timetable
CornlTlenEs
Update projections of revenues from Landf2l Surcharge.
2002 and ongoing.
The Landfill Surcharge is second most important
sources of revenue (behind property taxes) for the City
of Elk River. The amount and duration of this revenue
source has significant nmplications for capital
improvements and tax planning.
Landfill Surcharge
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