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Goal Setting Packet Hopkins Council and Staff Retreat 2019 Agenda Draft – January 3 Session Date January 11, 2019 Introduction and Purpose This document is presented as a proposed agenda for the Hopkins City Council and Staff Retreat, to be help on Friday, January 11, at Oak Ridge Country Club in Hopkins. It includes an appendix with a statement of strategic priorities taken from the 2018 retreat and recommended preparation work for all participants (no more than 30 minutes). We will refer to the strategic priorities statement in the upcoming retreat. Agenda Times are approximate; we will adjust to the needs of the group. 9:00 AM Welcome – Mayor Cummings and City Manager Mornson 9:05 Opening Exercise: “What’s in the Cards for Hopkins?” 9:45 Street Reconstruction: Work that is completed, underway, and planned. – Nate Stanley, City Engineer 10:30 Break 10:45 Financial Management Plan – Stacie Kvilvang, Ehlers & Associates 12:00 Lunch 1:00 Morning Debriefing Discussion – what did we learn, and what does it mean for us going forward? - Weinstein 2:00 Break 2:15 Future Vision Exercise. Interactive exercise that will help leaders reach shared perspectives and mutual understanding concerning the City’s strategic themes and how they should be pursued in the coming year(s). – Weinstein Themes as captured in 2018 are presented in the Appendix to this agenda. • What do each of these themes mean, at the levels of language and of action? • What do we envision in terms of the successful realization of these thematic visions? • Where do we have full agreement, where do we have general consensus, and where do we have substantively differing views at this point? • What specific guidance do both appointed and elected officials take from this discussion? 3:45 Concluding Exercise 4:00 Adjourn Proposed Agenda Page 2 City of Hopkins Council and Staff Retreat Draft January 3, 2019 APPENDIX Strategic Themes and Preparatory Work Strategic Themes from 2018 Retreat 1. Strategic investment in infrastructure and staff, governed by a high-level, comprehensive, budget –sensitive plan. Infrastructure includes roads and utilities, city workplaces, as well as parks and amenities. The people of Hopkins also benefit when the City is an employer of choice. 2. Economic and Community Development. To support independent businesses and expand a vibrant Mainstreet district. 3. True inclusion. Inclusion that respects the diversity of the sub-communities that comprise Hopkins. “E pluribus unum” means “from many, one”. It is applicable to Hopkins, insofar as you want to build both unity and the diversity of your community. You want diverse voices to inform and support policymaking. 4. Affordable Housing must promote conditions that allow the people of Hopkins to stay in their homes, without squelching renewal, economic development, and the positive tax base consequences of new development. Preparatory Work for 2019 Retreat In the afternoon of the retreat, we will think critically about the above strategic themes, and consider what they mean for Hopkins’s residents, businesses and their customers, visitors, etc. To stimulate creative thinking about the experiences of the people of Hopkins, I propose that retreat participants watch a TED talk by journalist Courtney E. Martin entitled, The New American Dream. https://www.ted.com/talks/courtney_martin_the_new_american_dream . (If the link does not work, search for the title or author on Ted.com.) The video is under 13 minutes in length. I do not recommend this presentation because I agree with it entirely – indeed, my own views differ from Ms. Martin’s in some respects, and I think most participants will feel the same way. Rather, I recommend this video because it may stimulate us to look at our strategic themes from a different perspective. After viewing the video, please consider the following: In what ways might our city government contribute – alone or in partnership with other stakeholders - to the connectedness and sense of community experienced by residents? In what ways do the values of creativity and community that Courtney Martin describes relate to the traditional goals of economic development? If you have questions or concerns, please contact me via cell at 612-819-8246 or email at cweinstein@ethinact.com Inspire. Educate. Involve. Communicate. All people feel safe and respected, and diversity is celebrated. Business growth is supported and a vibrant downtown is maintained. People enjoy exceptional government services, neighborhoods and outstanding schools. Support a vibrant business community Promote and enhance city events Provide accessible, friendly and efficient city services Embrace and strengthen partnerships Improve walking and biking infrastructure in the city Practice environmental responsibility Support a range of housing options Support transit-oriented development Involve diverse populations Engage the rental community of Hopkins Inspire community and citizen engagement Take It To Them Urban Design: Do It Right Preserve the Home Town Feel of Hopkins Creating a spirit of community where... MISSION City of STRATEGIES2018 VISION GOALS GOAL SETTING 2018 »Implement the sidewalk and trail master plan and partner with other agencies to improve and update paths, trails and crossings in the community, supporting “Complete Streets” initiatives »Explore local transportation opportunities »Develop a schedule for rezoning properties to the mixed-use zoning classification and begin implementation »Partner with Hennepin County and SWLRT cities to maximize benefit and minimize disruption during construction »Work with Minnetonka and Hennepin County to implement the vision for the Shady Oak LRT Station »Work with all stakeholders to implement and build on recommendations of the Blake Road Corridor plans »Continue to explore and promote sustainability initiatives in our community »Refine Mainstreet design and façade improvement program, and secure ongoing funding »Explore ways to strengthen the edges of downtown »Ensure the Comprehensive Plan reflects action steps »Explore ways to enhance the Mainstreet experience »Strengthen image of arts community »Promote shopping local »Promote business assistance programs »Develop wayfinding plan for community »Work with “Think Hopkins” on business recruitment efforts »Promote city events large and small (Raspberry Festival, Mainstreet Days, Old Fashioned Holiday, Summerfest, etc.) and have a city booth at events when possible »Improve service delivery through e-commerce »Promote interactive park, trails, and facilities directory on website »Support History Center transition to Mainstreet »Grow partnerships with: »Joint Recreation with Minnetonka »Hennepin County »Hopkins School District »Watershed Districts »Met Council »Three Rivers Park District »Surrounding cities »Faith and community-based organizations »Business community »Promote cultural celebrations »Explore methods to involve Multicultural Advisory Committee in community building »Continue to seek out diversity on boards and commissions »Intentionally engage rental communities »Encourage volunteerism and expand volunteer opportunities »Conduct community meetings at alternative locations »Educate the community in the area of emergency preparedness »Identify opportunities to partner with youth, schools, businesses and faith-based organizations »Promote opportunities to raise awareness and understanding of race, equity and diversity »Creatively engage and market the community using technology and unique platforms GOAL SETTING 2018 GOALS: ACTION STEPS Preserve the Home Town Feel of Hopkins Urban Design: Do It Right Take It To Them January 11, 2019 City Council Goal Setting Pavement Management Program Status of Street Reconstruction Design Standards Street Improvement Policy Future Preservation What is it and why? ◦Monitor asset condition ◦Maintain assets ◦Project selection ◦Ensure financial stability ◦Community expectations/quality of life Condition Monitoring ◦ICON – Pavement Consultant ◦Visual field inspection ◦Pavement Condition Index (PCI) 0-100 ◦Review entire city every 4-5 years Rehabilitation Strategies ◦Full Reconstruction ◦Reclaim Asphalt/Pave ◦Mill & Overlay ICON Map Data Analysis ◦Evaluate PCI information ◦Select project areas ◦Review utilities Translation to CIP ◦Cost estimating ◦5-year horizon What do we have? ◦City Street - 48 miles ◦Sanitary Sewer – 42 miles ◦Water Main – 63 miles What have we done to date since 1985? ◦City Street – 33 miles Current CIP Projects ◦City Street – 6 miles ◦Forecast over 2019-2023 ◦81% of City completed through current CIP Reconstruction Beyond 2023 ◦City Street – 9 miles When Will Every Street be Reconstructed? ◦Forecast based on last 5 neighborhood projects and geography of remaining streets ◦10 to 12 years – if we stay at current rate ◦Forecast starting 2019 Streets ◦Subgrade Excavation/Sub Base Correction ◦Class 5 Granular Base ◦Bituminous Hot-Mix Asphalt ◦Concrete Curb and Gutter – B618 style Water Main ◦Class 52 Ductile Iron ◦Plastic – PVC or HDPE Sanitary Sewer ◦PVC ◦Resin infused lining Street Standards – Why? ◦Prevent deterioration and protect investment Asphalt is flexible - doesn’t like tensile forces Wet subgrades become weak 85% of failure is due to moisture penetration – MNDOT Concrete curb and gutter is rigid, confines pavement, creates atmosphere of compression Concrete C&G can be built to fine tolerances Curb and gutter provides drainage conveyance Protects boulevards Legislative Policy – Chapter 8 ◦8-B Roadway Improvements Provides for project development process Assessments Street Standards ◦Proposed Updates to Policy 8.02 – Revise curb and gutter petition language, delegate control to the City Council 8.03 – Revise minimum street width language No changes to assessment policies Staff to propose revisions this year Recent Projects Which Added C&G ◦2016 – 21st Avenue ◦2017 – 9th Ave S and 10th Ave S ◦2018 – Cambridge St, Oxford St, Murphy Ave ◦2019 – Hiawatha Ave, Cambridge St, Van Buren Ave, Lake St Reconstruction should become less frequent ◦Will still be warranted eventually ◦Utility considerations - Echologics ◦Reclamation more frequently Annual Mill and Overlay ◦15-20 years beyond reconstruction – don’t wait for pavement failures ◦Multiple M&O cycles ◦Costs significantly less than reconstruct Substantial investment has been made Continuing is important – the end is near! We are in great shape and well positioned Hopkins is a great place Financial Management PlanCity of HopkinsJanuary 11, 2019 What is a Financial Management Plan?A multi-year fiscal plan for all tax-supported fundsIntegrates:Existing DebtCapital Improvement PlansFuture DebtTax base growthFuture operating expensesCompares entity to standardsGovernment Finance Officers Association (GFOA)Similar entities What Makes It Practical?Helps to manage expectationsNew spending proposals evaluated against other identified prioritiesWeigh proposals vs. predefined affordability parametersHelps to maintain assetsRegular replacementsLarge periodic repairsReduces stress during budget processPreviously agreed spending guidelinesBetter understanding of the effect decisions haveRating Agencies like multi-year planningReduces reactivity amidst an unpredictable fiscal environment and unfunded mandates Results1. Council can focus on big picture and policy issues– Get away from randomly picking a percent or number increase for the budget2. Council can focus on long-term financial health of the City– Good roads, facilities, services, reinvestment, etc.– Not on single-year tax impacts 3. Projects, in the context of multi-year planning, tend to be less controversial– Provides background/perspective on issues for discussion – Provides framework to make informed decisions4. If there is a plan, projects get done and the City has a vehicle through which to inform the residents on the goals of the City HistoryDid first comprehensive plan in 2014Average home value was $206,000• Currently $261,000 for Pay 2019•27%increaseFund balance policies agreed to:• General Fund 42%+ of expenditures• Capital Equipment Fund is $750,000 or one year of costs• Capital Improvement Fund is $300,000 Major projects since that time – approximately $36 million• City parking lots - $1.385M• Pavillion $3.285M•8thAvenue - $3.55M• Mainstreet - $4.19M• Parks - $4.915M• Annual road projects - $8.55M• Blake Road - $10.15M Assumptions In Plan1. Revenues(market value) increases starting in 2019 by 1% annually– Haven’t accounted for new development/redevelopment yet2. Expensesincrease at 4% annually3. All current CIP, parks, equipment, streets, EDA, HCA and Pavillion are funded as requested by department heads (including staffing needs)1. Includes 2019A bonds2. 5.5 new FTE at approximately $680,000 by 2024 4. Fund balances– Capital equipment is $750,000 or one year of costs– Capital improvements is $300,000 – General Fund is 42% + of expenditures per policy5. Average value home is $261,000 Biggest Costs to Tax Levy$350,000/year or more (besides existing staff and services) Fund Balance•$400,000 in 2020 going forwardArts Center•$400,000 in 2020 going up to $1M in 2021Pavillion•$300,000to$450,0002014B Bonds (Refunding bonds)•$670,000/year but done in 20222017A Street Reconstruction Bonds (Blake Road and 8thAve)•$970,000/year2018A Bonds (Blake Road and 2018 Streets)•$460,000/year2019A Bonds (to be issued)•$350,000/year• Only around $60,000/year is for City Hall General Fund Budget1.Average tax increase over next 5 years is $1392015 2016 2017 2018 2019 2020 2021 2022 2023 2024Actual Actual Actual Adopted Preliminary ProjectedTOTAL REVENUE 11,598,945 12,309,563 13,125,976 13,435,355 14,410,478 15,389,334 16,349,043 17,188,603 18,020,896 18,632,121TOTAL EXPENSES 11,328,480 12,450,769 13,139,583 13,435,355 14,410,478 15,389,334 16,349,043 17,188,603 18,020,896 18,632,121 Fund Balance as a Percent of Annual Expenses53% 47% 45% 44% 41% 40% 40% 41% 41% 41%TAX RATE ON TAX CAPACITY 61.008% 63.988% 62.984% 66.291% 69.040% 79.024% 83.482% 89.212% 88.940% 91.735%TAX RATE % CHANGE-2.54% 4.88% -1.57% 5.25% 4.15% 14.46% 5.64% 6.86% -0.30% 3.14%City Taxes after MVHC or Exclusion $1,143 $1,206 $1,296 $1,445 $1,707 $1,976 $2,112 $2,283 $2,302 $2,401% tax increase on median home (261k) 12.54% 5.50% 7.52% 11.46% 18.13% 15.81% 6.84% 8.11% 0.82% 4.30%Amount increase on median value home $127 $63 $91 $149 $262 $270 $135 $171 $19 $99GENERAL FUND Issues to Discuss1. Funding of Hopkins Center for the Arts2. Future staffing requests and impacts• 5.5 new FTE at approximately2020 2021 2022 2023 2024Projected DWI Officer 117,437 122,662 129,610 133,857 139,211 Temporary inspector 41,515 42,761 44,043 45,805 Community Engagement - 0.5 FTE 48,493 52,857 53,357 55,491 Police Officer - 123,783 127,855 132,969 Fire Fighter - 97,975 101,894 I.T. Tech - 93,114 98,372 102,307 Fire Fighter - - 97,975 101,894 TOTAL EXPENSES 117,437 212,670 442,125 653,434 679,571 GENERAL FUND