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Agenda - Monday, July 27, 2020Council/Board Chambers 151 4th Street
SE
Study Session July 27, 2020
03:30 PM
- THIS MEETING SHALL BE CONDUCTED PURSUANT TO MINNESOTA STATUTES SECTION 13D.021 AND MEMBERS MAY APPEAR ELECTRONICALLY. SHOULD ANY MEMBER APPEAR ELECTRONICALLY, ALL VOTES SHALL BE TAKEN BY ROLL CALL AND EACH MEMBER OF THE BOARD WILL BE ABLE TO HEAR EACH OTHER. PUBLIC ACCESS WILL BE RESTRICTED TO COMPLY WITH STATE HEALTH GUIDANCE DURING THE PANDEMIC. CURRENT ROOM LAYOUT ALLOWS FOR APPROXIMATELY 11 INDIVIDUALS TO ATTEND.
-VIEW MEETING: CITIZENS ARE ENCOURAGED TO VIEW THE MEETING BY EITHER WATCHING ON SPECTRUM (CHARTER) CHANNEL 180 OR 188 OR VIA LIVE STREAMING THE MEETING. THE LIVE STREAM CAN BE FOUND AT THE WEB ADDRESS ONCE THE MEETING STARTS: WWW.ROCHESTERMN.GOV/AGENDAS.
STUDY SESSION MEETING ITEMS
City of Rochester Vision, Principles, and Priorities
1 Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2 Sustainability Update / Community Development - Estimated Time 30 Minutes
3 Study Session Schedule
Priorities
Community Vision 2040
Rochester is a city that cares: where all people are treated with dignity and respect; where
residents, employees, and visitors enjoy a high quality of life; where business and industry
thrive; and where the land and environment are renewed and sustained for the benefit of
all. It is a welcome and diverse community:
Renowned for its reputation as a center for growth and innovation, its robust economy,
and programs and institutions that support life-long learning;
Characterized by its safe and friendly neighborhoods, diverse and affordable housing
options for people of all ages and backgrounds, thriving downtown, vibrant public
spaces,and easy access to parks and recreation amenities;
Committed to health and wellness for its people, and also of the air, water, and land they
depend on for sustenance;
and
Dedicated to the sustainable and responsible use of public resources and provision of
quality public services, supporting livability and long-term fiscal health.
Packet Pg. 2
Maintain and increase neighborhood vitality and livability.
Secure a funding stream for sustained parks and recreation improvements and
community amenities.
Create employee development plans.
Manage growth and development
Incorporate P2S infrastructure planning into development decisions.
Implement the recommendations of P2S, the Parks and Recreation Master
Plan and the Library Strategic Plan.
Balance public infrastructure investment
Improve transportation and related facilities.
Develop an asset management plan and use life-cycle cost considerations during decision
making.
Develop a policy and practice of assessing new infrastructure investment based on
current assets and maintenance costs.
Packet Pg. 3
STUDY SESSION ITEM ITEM 1: Comprehensive Annual Financial Report and Audit Review
The City’s FY 2019 Comprehensive Annual Financial Report (CAFR) was issued on June 22, 2020. The CAFR is prepared and published annually by the City’s Finance Department.
The entire CAFR can be found on the City’s website at the following location: https://www.rochestermn.gov/departments/finance-information-technology.
Teammates from the Finance Department will provide an overview of the CAFR.
Attachments: • Presentation: City of Rochester Financial Statement Overview 2019
1
• Issued unmodified opinion on City’s basic financial statements
– City issued 2019 CAFR in June 2020
– Smith Schafer relied on Baker, Tilly, Virchow, Krause’s unmodified opinion on Electric and Water Utility Funds
– Smith Schafer relied on CliftonLarsonAllen’s unmodified opinion on the blended component unit, DMCC
– City applied for GFOA Certificate of Achievement for Excellence in Financial Reporting for the 2019 CAFR & responded to GFOA comments on 2018 CAFR for which City received the Certificate
• Smith Schafer is performing the Single Audit of 2019 federal grant awards in July
• Audit Committee Meeting – Reviewed results of 2019 Audit, Procedural Recommendations and Auditors’
Responsibility Letter
• Special Revenue Funds: – Library – Municipal Recreation System – Mayo Civic Center – Edward Byrne Memorial JAG – Airport Operations – F.E. Williams Estate – Transit – Minnesota Bio Science Center – Community Development Projects – DMCC
• Capital Project Fund – Capital Improvement
• Debt Service Funds: – Tax Increment Bonds – TIF Revenue Bond – Facility Energy Improvements
Loan – EDA Bond – Public Works & Transit Operation
Center Bond – Lodging Tax Revenue Bond – GO Variable Rate Sales Tax Bond
3
1
• Internal Service Funds: – Equipment Revolving – Information Technology
Revolving – SelfInsurance
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Other Revenues In Lieu of Tax Transfers
Expenditures Sales Tax Revenue Transfers Out/In Net
Excess
• Generated surplus of $2,524,166 in 2019
• Revenues increased $5,899,397 from 2018 to 2019 primarily as the result of:
– Increase in General Property Taxes of $6.4 million – Offset by decrease in hotel/motel tax revenue of
$0.6 million
• Expenditures increased from 2018 to 2019 by $7,742,443 or 9.5%
– Increases in: • General Government $1,252,759 11.5% • Public Safety $3,957,741 7.5% • Public Works $2,314,358 15.6% • Culture $175,260 9.6%
• 2019 In Lieu of Tax received by General Fund:
– Electric $8,714,477 – Sewer 1,873,334 – Storm Water 619,442 – Parking 648,341 – Water 357,668 – Total $12,213,262
5
1
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Expenditures
• General fund unassigned fund balance was $37,808,279 at 12/31/19 expenditures totaled $88,962,377 in 2019
• State Auditor recommendation and adopted city policy is no less than 5 months of expenditures (42%)
6
1
7
1
Special Revenue Funds
– Library – Municipal Recreation System – Mayo Civic Center – Edward Byrne Memorial JAG – Airport Operations – F.E . Williams Trust – Transit – Minnesota Bio Science Center – Community Development Projects – DMCC
8
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit County Contributions Fees & Other Revenues Transfers In Expenditures Transfers Out Excess (Deficit in Red) Fund Balance
• Property taxes of $6,978,565 represented 80.5% of Library revenues in 2019
• In 2019, the Library operated at a deficit of $64,927
• County contributions totaled $1,012,711 in 2019 which is raised through property taxes levied outside of the City
• Expenditures increased by $781,533 in 2019
• Ending Fund Balance of $3,029,188 was 35% of 2019 Expenditures
9
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Fees & Other Revenues
Intergovernmental Transfer In Expenditures
• Municipal Recreation System includes:
Maintenance – Recreation – Tennis Center – Swimming Pools – Plummer House – Foster Arend Park – Graham Arena – Nat'l Volleyball Center
• Property taxes of $7,623,422 were 63% of revenues in 2019
• In 2019, Municipal Recreation System operated at a deficit of $436,668 after transfers out of $575,425
• Fund balance totaled $2,797,741 at 12/31/19 (23% of 2019 Expenditures)
10
1
Recreation Center Charges for Services, Direct Expenditures and Property Tax Support
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Customer Charges Direct Expenditures Excess after Property Tax Support
• Direct expenditures exceeded customer charge revenues by $341,528 in 2019, versus $386,726 in 2018
• The Recreation Center was supported by tax levy of $420,992 in 2019
11
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Excess after Property Tax Support (Deficit Red) Direct Expenditures Program & User Fees County Contributions Property Tax Support
• Rentals, User Fees, and Program Fees totaled $706,444 in 2019
• Expenditures totaled $842,457 in 2019, a decrease of $21,585 from 2018
• Any operating deficit is split between the city and county
Graham Arenas Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Customer Charges Market Value Credit
Property Tax Support Direct Expenditures
Excess after Property Tax Support (Deficit Red)
• Customer charges in 2019 increased $596 in comparison to 2018
• Total expenditures increased $6,817 from 2018 to 2019
• Property tax support totaled $190,875 in 2019
• Total expenditures exceeded customer charges revenues by $369,631 in 2019, versus $363,410 in 2018
Golf Operations Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Intergovernmental Revenue
Operating transfers Charges for Services
Direct Expenditures Excess after Property Tax Support
• Property taxes of $5,850,161 represented 93% of revenues in 2019
• Expenditures of $6,167,733 in 2019 were $718,640 higher than 2018
• Overall departmental excess of $110,748 in 2019
Park/Forestry/Parkway Maintenance Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Lodging Tax Charges for Services Transfers In Direct Expenditures/Transfers Out Excess after Tax Support (Deficit Red)
• MCC operations were supported by lodging tax of $2,397,270 in 2019 (38% of 2019 Revenues)
• Charges for services decreased $1,108,878 in 2019
• Total expenditures exceeded charges for service revenues by $2,484,691 in 2019, versus $1,145,469 in 2018
• Fund balance totaled $1,525,049 at 12/31/19
• Expenditures and transfers out increased by $230,344 in 2019
15
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Landing/Loading Fees Commissions Land & Building Rent Other Income
• Airport saw an increase in commissions of $72,657 and an increase in landing/loader fees of $35,981 in 2019
• Commission revenue generated primarily from: – Parking lot – Car rentals – Fixed Base Operator
• Land and building rent continues to grow and is the 2nd largest source of revenue ($1,423,948 in 2019, an increase of $41,844)
• Total Airport operating revenues in 2019 was $5,309,496, an increase of $123,363 from 2018
16
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Airport Revenues Expenditures
Transfers Out, Net Excess (Deficit in Red)
• Property taxes of $509,148 were collected for airport operations
– Utilities (excluding natural gas)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$3,830,289
$3,218,374
$1,514,238
$558,458
18
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Federal and State Grants Charges for Services Other Revenues Expenditures/Transfers Excess (Deficit in Red) Fund Balance
• Increase in revenues of $1,807,624 primarily due to increased allocation of state aid and user fees
• In 2019, the Transit Fund operated at an excess of $1,630,061
• Fund balance at December 31, 2019 totaled $4,498,556
• Change in contract type from cost reimbursement in 2012 resulted in gross recording of revenues and expenditures
• Expenditures increase in 2018 and 2019 included expansion of services
19
1
$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Rental income Expenditures Transfers
Excess (Deficit in Red) Fund Balance
• This fund includes revenues from nonTIF portion of building only (Floors 48)
• Rental revenues totaled $2,774,615 in 2019
• In 2019, the MN Bio Science Center operated at a deficit of $114,806
• In 2019, transfers of $1,505,229 were made to the EDA Bond Fund for principal and interest payments and repayment of advance from parking fund, transfers in 2018 amounted to $929,726
• Fund Balance totaled $1,181,303 at 12/31/19
20
1
Debt Service Funds
• Tax Increment Bonds • TIF Revenue Bond • Facility Energy Improvement Loan • Economic Development Authority Bond • Public Works and Transit Operation Center Bond • Lodging Tax Revenue Bond • GO Variable Rate Sales Tax Bond
21
1
• REDA Lease Revenue Bond Outstanding – 2010 $16,215,000 – 2011 15,810,000 – 2012 15,385,000 – 2013 14,940,000 – 2014 14,470,000 – 2015 13,985,000 – 2016 13,475,000 – 2017 12,940,000 – 2018 9,904,000 – 2019 9,436,000
• Bond payments will be funded by sublease rent payments from tenants of the Minnesota Bio Science Center
22
$0
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1
Tax Increment Bond
• Tax Increment Bonds Outstanding – 2010 9,841,721 – 2011 9,586,023 – 2012 9,079,422 – 2013 8,548,965 – 2014 7,895,273 – 2015 7,224,787 – 2016 6,860,000 – 2017 6,600,000 – 2018 6,330,000 – 2019 2,040,000
• TIF Bond issued in 2009 is to be paid by the collection of Bio Science Center tax increments and building lease revenues – Balance at 12/31/19 $2,040,000
• Principal paid in 2019 totaled $4,290,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
23
1
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$26,700,000 $26,650,000
$25,780,000 $24,900,000
$24,010,000 $23,110,000
$22,195,000 $21,255,000
$20,300,000
• GO Taxable Build America Bonds (Series 2010A) were issued in 2010. Proceeds of these bonds used for: – Public Works Operations
Center $23.8 million – Transit Operations Center
$2,475,000 – Fire Truck $425,000
• A portion of the interest payable on these bonds is reimbursed through federal grants
24
1
• Adopted new Accounting Standard for Pensions in 2015
• Net Pension Liability represents City’s portion of PERA underfunding – based on PERA Actuarial Report dated June 30, 2019
• Recorded as – Governmental $48,024,820 – Proprietary 16,823,664
Total $64,848,484
• Funding percentages at June 30, 2019 estimated at – General Employee Fund: 80.2% – PEPPF: 89.3%
25
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$61,538,343 $63,138,279
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Fund balance totaled $132,192,804 at 12/31/19 – Fund balance is either committed by the City Council or restricted for the following:
– Flood Control ($15.0 Million) – Sewer and Water ($6.2 Million) – Infrastructure Sales Tax Projects ($30.3 Million) – Highways & Streets ($27.1 Million) – Future Construction ($946,000) – Economic Development Loan ($938,000) – Mass Transit ($1.8 Million) – Tax Increment ($9.0 Million) – Future Assessment Projects ($8.8 Million) – Future Property Acquisition ($2.8 Million) – Park and Recreation ($3.3 Million) – Fire Station, Computer Upgrades, Airport,
Future Construction & other misc. projects ($10.3 Million)
– Police Precinct/Development Service Infrastructure Center ($10.8 Million)
– Mayo Civic Center ($6.8 Million) – DMCC ($19.7 Million)
27
1
• Parking • Electric Utility • Water Utility • Sewer Utility • Storm Water Utility
28
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues Other Income (Expense) Expenses
Transfers Out/In Lieu of Tax Net Income
• In 2019, revenues from Ramps increased by $51,939 and parking fines collected increased by $31,968
• Operating costs, not including depreciation, increased by $651,981
• Net income totaled $962,276 in 2019 and $1,507,385 in 2018
• Unrestricted net position at December 31, 2019 totaled $15.8 million
• Chart excludes capital contributions and transfers out to the BioScience Center
• 2017 net income excludes transfer in of $22.4 million related to bond proceeds
• Transfers out in 2017 include $1.9 million related to consulting studies (DMCC)
29
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Income Expenses/Transfers out
Retail Sales
• Electric revenues in 2019 were $164,893,341, a decrease of $4,401,892
• Rates increased 1.9% in January 2019 and 1.5% in January 2018.
• Additional Electric Customers: – 2019 1,047 – 2018 1,102 – 2017 939 – 2016 1,520 – 2015 974 – 2014 418 – 2013 392 – 2012 583 – 2011 1,188 – 2010 544
• Operating expenses have fluctuated primarily as the result of SMMPA purchased power rate increases and the changing volume of wholesale activity
• Revenue Bonds and Electric Utility Notes of $171,180,000 outstanding at 12/31/19
30
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Operating Revenues Operating Expenses/Transfers out Net Income (Loss in Red)
• Water revenues in 2019 were $11,657,335, an increase of $840,037
• Rates increased 6.0% in January 2019 and 6.0% in January 2018.
• Additional Water Customers: – 2019 268 – 2018 451 – 2017 434 – 2016 481 – 2015 503 – 2014 296 – 2013 367 – 2012 398 – 2011 318 – 2010 219
• Operating expenses/transfers out increased by $392,368
• Net income for 2019 and 2018, as shown in the chart, of $1,122,486 and $619,954, respectively, excludes capital contributions
31
1
Electric and Water Utilities (RPU) Unrestricted Cash and Investments Reserves
Unrestricted Cash and Investments
(PILOT)
22%
32%
42%
55%
63%
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
32
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues Other Income Net
Expenses Including In Lieu of Tax Interest Expense on Bonds
Depreciation Expense Income Before Cap. Contr. (Loss Red)
• Rate increases approved through 2021 based upon rate study completed in 2015
• Noncash depreciation expense of $6.2 million and interest expense of $1.5 million in 2019
• Sewer Bonds outstanding totaled $65,675,000 at 12/31/19.
33
1
75% 93% 88% 86%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unrestricted Cash and Investments Operating Expenses, Interest, and Transfers Out
34
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Storm Water Fees Revenue from Developers Expenses Including In Lieu of Tax
Depreciation Other Revenue (Expenses) Net Transfers In (Out) Net
Net Income Before Capital Cont
• Net income, after transfers (excluding capital contributions), totaled $3,543,961 in 2019
• Rate increase of 10.75% in January 2019 based on rate study completed in 2015
• Operating excesses are being set aside to fund future storm water system improvements
• Capital contributions of $2,903,829 and $ 3,010,280 for 2019 and 2018 are not included in the chart
• Storm Water Unrestricted Net Position at 12/31/19 was $19,388,915
35
1
28% 64%
112% 145%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unrestricted Cash and Investments Operating Expenses and Transfers Out
36
1
37
1
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Department Charges Equipment Acquisitions
• Cash reserves and related interest earnings allows for: – Stable departmental charges – Interest income to supplement
departmental charges as source of funding for acquisitions
• 2019 Equipment capitalized totaled $3,839,343 and included:
38
7Ford Interceptor Utility AWD 345,502 5Ford Interceptor Sedan 153,323 2Pierce Impel Pumper 1,082,197 3Peterbilt Tandem Axle Plow Truck 778,883 1CAT Wheel Loader 938M 180,037 1Chevy 3500 4x4 127,473 3Toro GM 5910 297,269 1Peterbilt 348 w/Chip Box 129,749 1Aerial Lift Truck 208,913 1 Jet Sewer Truck 260,591
1
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Equipment Acquisitions & Other Charges Department Charges Transfers In
• Cash reserves and related interest earnings allows for: – Stable departmental
charges – Interest income to
• Other charges consisting of maintenance agreements, software licenses and other professional and contracted services amounting to $1,005,515 in 2019 and $712,542 in 2018
• Increase in 2016 related to technology enhancements as part of the Mayo Civic Center expansion
39
1
Equipment Revolving Fund and IT Revolving Fund Unrestricted Net Position
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2010 2011 2012 2013 2014
2015 2016 2017 2018 2019
40
Unrestricted net position of the equipment revolving fund increased by $828,500 to $5,150,059 in 2019
Unrestricted net position of the information technology revolving fund increased by $495,091 to $4,451,782 in 2019
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GASB 75 Implementation Total Net Position
Net Income (Loss in Red) Operating Income (Loss)
• Total Net Position at December 31, 2019 of $16,617,957 represents the City’s reserve against Self Insurance risk for: – Deductible Property Loss – Medical/Dental Claims – Workers Comp Claims
• Net income in 2019 was $2,472,314 (an increase of $2,939,005 from 2018’s net loss of $466,691)
• Departmental medical charges increased by 14% and dental charges increased by 1% in 2019.
• Implementation of GASB 75 in 2018 restated beginning net position by $3,670,778
41
1
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Department & Employee Charges Benefits Paid
• Departmental and employee charges are used to pay health insurance claims
• Interest earnings on reserves are used to supplement departmental and employee charges
• Departmental medical charges have changed annually as follows:
– 2019 14% – 2018 14% – 2017 14% – 2016 13% – 2015 2% – 2014 5% – 2013 5% – 2012 % – 2011 3% – 2010 %
• In October of 2011 the City had an insurance holiday where neither the departments or the employees were charged for Health or Dental Insurance
42
1
Taxable Market Value State Market Value Exclusion
• Taxable Market Value for 2020 is $12.6 Billion, up $1.1 Billion (8.8%) from 2019
• Includes both real property and personal property
43
1
44
1
2015 2016 2017 2018 2019
45
1
Governmental Funds – All Expenditures (Excluding Capital Outlay and Debt Service)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
General Govt Police Department Fire Department Other Public Safety Airport Transit
2010 2011 2012 2013 2014
2015 2016 2017 2018 2019
46
1
Governmental Funds – All Expenditures (Excluding Capital Outlay and Debt Service)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Unallocated
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
1
Property Taxes, LGA, & Market Value Credit (Per Capita, Inflation Adjusted)
$0
$100
$200
$300
$400
$500
$600
$700
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Taxes LGA/Market Value Credit
• Per Capita Property Taxes (Excluding Market Value Credit) • 2010 $435 • 2014 445 • 2019 632
• Per Capita LGA/Market Value Credit • 2010 $58 • 2014 64 • 2019 64
• Per Capita Total of Property Taxes, LGA/Market Value Credit • 2010 $493 • 2014 509 • 2019 696
• Population • 2010 106,769 • 2014 111,187 • 2019 118,815
48
1
• Consists of: – Statement of Net Position – Statement of Activities
• Utilizes accrual basis of accounting and requires capitalization and depreciation of all property and equipment and recognition of all long term liabilities
49
1
51
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GENERAL GOVT
PUBLIC SAFETY
Summary
• General Fund Unassigned Fund Balance at 42% of annual expenditures. (City policy is not less than 42%)
• Library Fund Balance at 35% and Municipal Recreation Fund Balance at 23% of annual expenditures. Mayo Civic Center fund balance totaled $1,525,049 at December 31, 2019.
• Trend of declining Airport Fund Balance was reversed in 2014 as the result of reinstating levy allocation, reducing capital improvement transfers and improved airport operations. Airport Fund Balance has a balance of $6,019,604 in 2019 an increase of $1,489,806 from 2018.
• Transit fund revenues continue to exceed expenditures increasing fund balance to $4,498,556 at December 31, 2019. Much of this balance is designated for additional bus purchases.
• Capital Improvement fund has $132 Million in reserves for future capital projects as outlined in the City’s capital improvement plan.
• Parking fund has $16 Million in reserves for future capital needs through annual operating profits.
52
1
• Electric and Sewer Utilities servicing $237 Million in bonds (including Crossover Refunding bonds) with future access charges and user fees.
• Sewer rate increases have allowed the Sewer Fund to service outstanding Sewer Bonds and build cash reserves for future capital improvements.
• The City’s SelfInsurance Fund reserves at December 31, 2019 totaled $16.6 Million an increase of $2.5 Million from 2018. Fund reserves increased for the first time in the last 5 years.
• Equipment Revolving fund unrestricted net position increased from $4.3 Million in 2018 to $5.1 Million in 2019. Amount still below the a high of approximately $8 Million in 2012.
• The activity of the DMCC, a separate nonprofit corporation, is included in the fund financial statements. DMCC activities are being funded with sales tax collections.
53
1
STUDY SESSION ITEM ITEM 2: Sustainability Update
The sustainability team will be providing an overview and update on the top focus areas as noted in the attached City of Rochester Sustainability Report. In addition, the Energy Commission will also be providing an update on their work related to implementation of the Energy Action plan.
Attachments: • Memo: Study Session on Sustainability & Energy Action Plan • City of Rochester Sustainability Report
2
SUBJECT: STUDY SESSION ON SUSTAINABILITY & ENERGY ACTION PLAN
DATE: JULY 23, 2020
CC: STEVE RYMER, CITY ADMINISTRATOR CINDY STEINHAUSER, COMMUNITY DEVELOPMENT DIRECTOR KEVIN BRIGHT, ENERGY & SUSTAINABIITY DIRECTOR
Please find attached the project status report from the Community Development Department related to our focus area of sustainability. The sustainability team will be providing an overview and update on our top focus areas at the July 27, 2020 study session. In addition, the Energy Commission will also be providing an update on their work related to implementation of the Energy Action plan. This update will include their progress on achieving the energy goals identified in the plan and priority areas for 2020- 2021.
2
CITY OF ROCHESTER SUSTAINABILITY REPORT Community Development Department July 2020 CITY OF ROCHESTER ADOPTED SUSTAINABILITY GOALS
_____________________________________________________________________________________________ Project: Sustainability & Resiliency Task Force Foundational Principles: Social equity, environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, manage growth and development, balance public infrastructure investment Goal Area: City for Health, Transportation, Energy, GHG Emissions, Vibrant Neighborhoods Key Actions: Development of action plan, public engagement, community collaboration Scope The Sustainability and Resiliency Task Force, a diverse cross-section of over 40 community members, was created to ensure the community has a voice in guiding the development and implementation of an action plan with input and guidance from all of Rochester’s residents. The Action Plan will focus on five key areas – Vibrant Neighborhoods, City for Health, Transportation, Resilient Economy, and Greenhouse Gas Emissions – highlighting the economic, environmental and social resilience strategies that can help guide the City in future decision making. Staff Update
• Revisiting outcomes of the planning process so far, review draft vision statement • Community Listening Advisory Group created to react to and shape process for community engagement • Organizing community calendar to schedule community listening appointments • Finalizing the Sustainability and Resiliency webpage that will share updates and engagement opportunities
Sustainability Goals
Packet Pg. 60
Project Timeline • April 2020: Monthly task force workshops began • June & July 2020: Community engagement plan under review and community listening sessions will begin • October 2020: Task Force will debrief on community listening • November 2020: Begin drafting an action plan • Spring 2021: Draft Sustainability & Resiliency Action Plan to present for review
_____________________________________________________________________________________________ Project: City of Rochester Green Team Foundational Principles: Environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Foster team-oriented environment, manage growth and development, enhance quality of life Goal Area: Energy, Transportation, GHG Emissions Key Actions: Development and implementation of strategy plan Scope The City’s Green Team was launched in 2020 to implement sustainability actions and initiatives within the City units, with a goal of integrating environmentally preferable practices into City operations. Team members assess current operational practices identifying opportunities in procurement, transportation, energy, waste, integrated pest management and landscaping, and greenhouse gas emissions. Staff Update
• Adopted polystyrene ban in all City facilities, January 2020 • Building Temperature Guidelines were accepted by City Administration, May 2020 • Current initiatives include a robust review of the City’s procurement in 2019 and a review of the current
waste management system • Creating a high-level priority list and draft strategic plan to present back to Team in August
Project Timeline
• Currently developing a strategic plan and timeline for each priority and its performance metrics • Completion of a formal work plan anticipated by September 2020 • Waste priorities will be confirmed at the July 2020 meeting
_____________________________________________________________________________________________ Project: Air Quality Monitoring Program Foundational Principles: Public safety, social equity, environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, manage growth and development Goal Area: City for Health, Transportation, GHG Emissions, Vibrant Neighborhoods Key Actions: Data collection and analysis, Community collaboration Scope In 2019 and 2020, the Community Development Department and the DMC EDA purchased 14 air quality sensors to install throughout greater Rochester and the downtown core to better understand air quality concerns. These sensors will monitor air pollution in real-time throughout the year, data is publicly available for review and download on PurpleAir’s website. The data will assist the City in policy decisions around transportation, planning and other key priority areas, while monitoring air quality as development continues. Staff Update
• All 14 air quality sensors have been delivered to their respective locations and stakeholders • Working with the stakeholders to assist in getting sensors registered and online
2
• Joining the We Bike Rochester August meeting to discuss ideas for future collaborations on data collection Project Timeline
• Sustainability staff anticipates all monitors to be installed and live on the PurpleAir map by August 2020 • Collect and analyze data with Mayo and the University of Minnesota, Rochester • Early 2021, work MPCA to develop a robust Air Quality Monitoring Program
_____________________________________________________________________________________________ Project: Bike Share Committee & Program Foundational Principles: Environmental stewardship, social equity, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, balance public infrastructure investment Goal Area: City for Health, Transportation, GHG Emissions Key Actions: Community collaboration Scope The Community Development Department partnered with 10 agencies and departments to offer a free bike sharing program for the community in 2019. Over 1,200 riders used the program during the summer of 2019 to run errands, commute to work or job interviews, get groceries or just enjoy the City’ 100 miles of bike trails. In the spring of 2020 the group reviewed ridership for the program and decided to grant underutilized bikes to individuals or organizations within the community who demonstrated need. The bike share and bike grant programs allow community members with mobility challenges access to reliable transportation. Staff Update
• 34 individuals were awarded bikes for personal use • 40 bikes were awarded to 8 community organizations • Partnered with Pata de Perro (Rochester Community Bike Club) to salvage unclaimed bicycles collected by
the Rochester Police Department o 15 bicycles were picked out and transported back to Pata de Perro’s shop, where they will be
distributed to community members in need or used in the Bike Grant Program • Reviewing use of SHIP grants for bicycle friendly designated businesses and organizations in the community • Partnered with Lime to bring back the scooter-share with the addition of electric bikes for the 2020 season
Project Timeline On-going _____________________________________________________________________________________________ Project: Energy Benchmarking Program Foundational Principles: Environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Manage growth and development Goal Area: Energy, GHG Emissions Key Actions: Community engagement, data collection and analysis Scope The Building Energy Program seeks to help buildings limit energy waste and reduce greenhouse gas emissions. Participants gain insight into the efficiency of their buildings and their relative performance to peers, encouraging energy-saving actions. The program provides performance transparency for building owners, operators and municipal leaders aiming to achieve energy and climate goals. Staff Update
• Wrapping up utility data collection from new and existing program participants
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• In 2020 the benchmarking program welcomed its first hotel, Hilton’s Home2Suites, with another on deck for 2021 when construction completes
• Other new participants included Channel One and St. Mary’s Cascade Meadow Environmental Science Center • City was awarded a MN GreenCorps member for the 2020-2021 service year, who will assist with recruitment
and help current participants identify and implement energy saving opportunities Project Timeline
• Data analysis will begin late summer 2020 • 2019 Benchmarking Report completed and published in fall 2020 • 2020 program year recruitment will begin February 2021
_____________________________________________________________________________________________ Project: Downtown District Energy System, Analysis Foundational Principles: Fiscal responsibility and sustainability, environmental stewardship Strategic Priorities: Manage growth and development, balance public infrastructure investment Goal Area: Energy, GHG Emissions Key Actions: Infrastructure development Scope Several City and County government facilities are served by the Olmsted County Waste to Energy Facility (OWEF), a steam-based district energy system, which will need replacement in the coming years. As a result, the County, City and the DMC EDA are evaluating a building-based and a second district energy system (DES) option in the Downtown Waterfront sub-district. The study will inform future capital planning efforts - a DES could be leveraged to support further private development, incent affordable housing and build on RPU’s 100% renewable energy resource plan. Staff Update
• Olmsted County has decided to install independent heating and cooling systems for their facilities, City and DMC EDA are moving forward in pursuing a DES
• Next stage of analysis would be for business as usual case vs 180-degree DES hot water loop case • Staff currently preparing a presentation, in accordance with RPU, for City Council
Project Timeline
• The project team aims to bring forward the recommendation of further analysis to City Council in August • Pending approval, the study may move to the next stage of analysis later summer 2020 • Completed study by early 2021
_____________________________________________________________________________________________ Project: GreenStep Cities Program Foundational Principles: Social equity, fiscal responsibility and sustainability, environmental stewardship Strategic Priorities: Enhance quality of life, manage growth and development Goal Area: City for Health, Transportation, Energy, GHG Emissions, Vibrant Neighborhoods Key Actions: Data collection and analysis, performance measurement Scope Since its inauguration in 2010, the City of Rochester has participated in the Minnesota GreenStep Cities Program, a voluntary challenge, assistance, and recognition program to help cities and tribal nations achieve their sustainability and quality-of-life goals. Step 4 recognition is awarded to cities who report a minimum number of core metrics for the previous calendar year. These metrics aim to show the aggregate, quantitative results of taking multiple GreenStep actions. Step 5 cities show improvement in the Step 4 metrics.
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Staff Update • Rochester received Step 4 and Step designation for calendar year 2019 • Rochester has completed 88 out of 175 possible actions • Recently joined the Sustainable States Network Community Energy Challenge as a participating GreenStep
City Project Timeline
• Data collected and updated every spring, submitted by June 1st • Cities receive recognition in July
ClimateSmart Municipalities: Through its participation in the GreenStep Cities Program, Rochester was one of five communities chosen in April 2016 to participate in the ClimateSmart Municipalities program. Minnesota municipalities were paired with award-winning climate-smart communities in Germany to accelerate progress toward a cleaner and more efficient energy footprint. Representatives are sent to Germany to learn about innovative programs and practices, then share their progress and insights in Minnesota. They also have the benefit of working with their twin community, while a delegation of municipalities and leaders visits Minnesota each fall. Staff Update
• Participated in a virtual exchange in June 2020 • Tentatively scheduled to host German delegation in fall of 2020 (pending COVID-19)
_______________________________________________________________________________________ Other Ongoing Projects & Cohorts:
• Food Access Assessment Planning • Sustainability Asset Map • Sustainability Website • Energy Commission Support, Implementation of Energy Action Plan • LEED Green Associate, Staff Training • Sustainable States Network, Community Energy Challenge
Upcoming:
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Printed On: 7/23/2020 Page 1 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date
Comprehensive Annual Financial Report and Audit Review Finance Discussion 60 Minutes 7/27/2020
Sustainability Update Community Development Update 30 Minutes 7/27/2020
Council Meeting 8/3/2020
Rochester International Airport Master Plan Airport Update 45 Minutes 8/10/2020
Trust for Public Land Initiative Parks and Recreation Discussion 8/10/2020
Council Meeting 8/17/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 8/24/2020
Council Meeting 8/31/2020
Labor Day 9/7/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/14/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/21/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/28/2020
DMC EDA Update DMC EDA Update 30 Minutes 10/5/2020
Bring Back the Clock Fire Dept. Update 15 Minutes 10/5/2020
Silver Lake Dam Modification Presentation Public Works Discussion 40 Minutes 10/5/2020
Age Friendly Community Mayor Discussion 20 Minutes 10/12/2020
Assessment Policy Public Works Discussion 50 Minutes 10/12/2020
UDC Update Community Development 45 Minutes 10/19/2020
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Printed On: 7/23/2020 Page 2 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date Maxfield Housing Update Administration 45 Minutes 10/19/2020
10/26/2020
10/26/2020
Bury Power Lines; policy RPU
Rental Property Inspection Ordinance Bldg. Safety
Bicycle Master Plan Community Developmnet April/May
LUPA Market Study/Annexation
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Printed On: 7/23/2020 Page 3 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date Infrastructure Liabilities and Financial Planning Admistration/Public Works
CIA- Policy Establishing Community Broadband Goal for the City
Administration
RST Airport Master Plan Update Airport
Community for Health Update Kevin Bright 30 Minutes
Postponed Items - COVID-19 Towards Zero Deaths Abby Tricker -Olmsted CO
Riverfront Re-imagined Administration
Single Family Rehab Program Update HRA
Proposed Stormwater Ordinance Revisions Public Works
Library Library
Agenda Packet
- This meeting shall be conducted pursuant to Minnesota Statutes Section 13D.021 and members may appear electronically. Should any member appear electronically, all votes shall be taken by roll call and each member of the Board will be able to hear each other. Public access will be restricted to comply with State Health guidance during the pandemic. Current room layout allows for approximately 11 individuals to attend.
-VIEW MEETING: Citizens are encouraged to view the meeting by either watching on Spectrum (Charter) channel 180 or 188 or via live streaming the meeting. The live stream can be found at the web address once the meeting starts: www.rochestermn.gov/agendas.
Study Session Meeting Items
Attachment: City of Rochester Vision, Principles, and Priorities
1. Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
Attachment: Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2. Sustainability Update / Community Development - Estimated Time 30 Minutes
Attachment: Sustainability Update / Community Development - Estimated Time 30 Minutes
3. Study Session Schedule
Attachment: Study Session Schedule
City of Rochester Vision, Principles, and Priorities
1 · Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2 · Sustainability Update / Community Development - Estimated Time 30 Minutes
3 · Study Session Schedule
Study Session July 27, 2020
03:30 PM
- THIS MEETING SHALL BE CONDUCTED PURSUANT TO MINNESOTA STATUTES SECTION 13D.021 AND MEMBERS MAY APPEAR ELECTRONICALLY. SHOULD ANY MEMBER APPEAR ELECTRONICALLY, ALL VOTES SHALL BE TAKEN BY ROLL CALL AND EACH MEMBER OF THE BOARD WILL BE ABLE TO HEAR EACH OTHER. PUBLIC ACCESS WILL BE RESTRICTED TO COMPLY WITH STATE HEALTH GUIDANCE DURING THE PANDEMIC. CURRENT ROOM LAYOUT ALLOWS FOR APPROXIMATELY 11 INDIVIDUALS TO ATTEND.
-VIEW MEETING: CITIZENS ARE ENCOURAGED TO VIEW THE MEETING BY EITHER WATCHING ON SPECTRUM (CHARTER) CHANNEL 180 OR 188 OR VIA LIVE STREAMING THE MEETING. THE LIVE STREAM CAN BE FOUND AT THE WEB ADDRESS ONCE THE MEETING STARTS: WWW.ROCHESTERMN.GOV/AGENDAS.
STUDY SESSION MEETING ITEMS
City of Rochester Vision, Principles, and Priorities
1 Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2 Sustainability Update / Community Development - Estimated Time 30 Minutes
3 Study Session Schedule
Priorities
Community Vision 2040
Rochester is a city that cares: where all people are treated with dignity and respect; where
residents, employees, and visitors enjoy a high quality of life; where business and industry
thrive; and where the land and environment are renewed and sustained for the benefit of
all. It is a welcome and diverse community:
Renowned for its reputation as a center for growth and innovation, its robust economy,
and programs and institutions that support life-long learning;
Characterized by its safe and friendly neighborhoods, diverse and affordable housing
options for people of all ages and backgrounds, thriving downtown, vibrant public
spaces,and easy access to parks and recreation amenities;
Committed to health and wellness for its people, and also of the air, water, and land they
depend on for sustenance;
and
Dedicated to the sustainable and responsible use of public resources and provision of
quality public services, supporting livability and long-term fiscal health.
Packet Pg. 2
Maintain and increase neighborhood vitality and livability.
Secure a funding stream for sustained parks and recreation improvements and
community amenities.
Create employee development plans.
Manage growth and development
Incorporate P2S infrastructure planning into development decisions.
Implement the recommendations of P2S, the Parks and Recreation Master
Plan and the Library Strategic Plan.
Balance public infrastructure investment
Improve transportation and related facilities.
Develop an asset management plan and use life-cycle cost considerations during decision
making.
Develop a policy and practice of assessing new infrastructure investment based on
current assets and maintenance costs.
Packet Pg. 3
STUDY SESSION ITEM ITEM 1: Comprehensive Annual Financial Report and Audit Review
The City’s FY 2019 Comprehensive Annual Financial Report (CAFR) was issued on June 22, 2020. The CAFR is prepared and published annually by the City’s Finance Department.
The entire CAFR can be found on the City’s website at the following location: https://www.rochestermn.gov/departments/finance-information-technology.
Teammates from the Finance Department will provide an overview of the CAFR.
Attachments: • Presentation: City of Rochester Financial Statement Overview 2019
1
• Issued unmodified opinion on City’s basic financial statements
– City issued 2019 CAFR in June 2020
– Smith Schafer relied on Baker, Tilly, Virchow, Krause’s unmodified opinion on Electric and Water Utility Funds
– Smith Schafer relied on CliftonLarsonAllen’s unmodified opinion on the blended component unit, DMCC
– City applied for GFOA Certificate of Achievement for Excellence in Financial Reporting for the 2019 CAFR & responded to GFOA comments on 2018 CAFR for which City received the Certificate
• Smith Schafer is performing the Single Audit of 2019 federal grant awards in July
• Audit Committee Meeting – Reviewed results of 2019 Audit, Procedural Recommendations and Auditors’
Responsibility Letter
• Special Revenue Funds: – Library – Municipal Recreation System – Mayo Civic Center – Edward Byrne Memorial JAG – Airport Operations – F.E. Williams Estate – Transit – Minnesota Bio Science Center – Community Development Projects – DMCC
• Capital Project Fund – Capital Improvement
• Debt Service Funds: – Tax Increment Bonds – TIF Revenue Bond – Facility Energy Improvements
Loan – EDA Bond – Public Works & Transit Operation
Center Bond – Lodging Tax Revenue Bond – GO Variable Rate Sales Tax Bond
3
1
• Internal Service Funds: – Equipment Revolving – Information Technology
Revolving – SelfInsurance
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Other Revenues In Lieu of Tax Transfers
Expenditures Sales Tax Revenue Transfers Out/In Net
Excess
• Generated surplus of $2,524,166 in 2019
• Revenues increased $5,899,397 from 2018 to 2019 primarily as the result of:
– Increase in General Property Taxes of $6.4 million – Offset by decrease in hotel/motel tax revenue of
$0.6 million
• Expenditures increased from 2018 to 2019 by $7,742,443 or 9.5%
– Increases in: • General Government $1,252,759 11.5% • Public Safety $3,957,741 7.5% • Public Works $2,314,358 15.6% • Culture $175,260 9.6%
• 2019 In Lieu of Tax received by General Fund:
– Electric $8,714,477 – Sewer 1,873,334 – Storm Water 619,442 – Parking 648,341 – Water 357,668 – Total $12,213,262
5
1
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total Expenditures
• General fund unassigned fund balance was $37,808,279 at 12/31/19 expenditures totaled $88,962,377 in 2019
• State Auditor recommendation and adopted city policy is no less than 5 months of expenditures (42%)
6
1
7
1
Special Revenue Funds
– Library – Municipal Recreation System – Mayo Civic Center – Edward Byrne Memorial JAG – Airport Operations – F.E . Williams Trust – Transit – Minnesota Bio Science Center – Community Development Projects – DMCC
8
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit County Contributions Fees & Other Revenues Transfers In Expenditures Transfers Out Excess (Deficit in Red) Fund Balance
• Property taxes of $6,978,565 represented 80.5% of Library revenues in 2019
• In 2019, the Library operated at a deficit of $64,927
• County contributions totaled $1,012,711 in 2019 which is raised through property taxes levied outside of the City
• Expenditures increased by $781,533 in 2019
• Ending Fund Balance of $3,029,188 was 35% of 2019 Expenditures
9
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Fees & Other Revenues
Intergovernmental Transfer In Expenditures
• Municipal Recreation System includes:
Maintenance – Recreation – Tennis Center – Swimming Pools – Plummer House – Foster Arend Park – Graham Arena – Nat'l Volleyball Center
• Property taxes of $7,623,422 were 63% of revenues in 2019
• In 2019, Municipal Recreation System operated at a deficit of $436,668 after transfers out of $575,425
• Fund balance totaled $2,797,741 at 12/31/19 (23% of 2019 Expenditures)
10
1
Recreation Center Charges for Services, Direct Expenditures and Property Tax Support
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Customer Charges Direct Expenditures Excess after Property Tax Support
• Direct expenditures exceeded customer charge revenues by $341,528 in 2019, versus $386,726 in 2018
• The Recreation Center was supported by tax levy of $420,992 in 2019
11
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Excess after Property Tax Support (Deficit Red) Direct Expenditures Program & User Fees County Contributions Property Tax Support
• Rentals, User Fees, and Program Fees totaled $706,444 in 2019
• Expenditures totaled $842,457 in 2019, a decrease of $21,585 from 2018
• Any operating deficit is split between the city and county
Graham Arenas Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Customer Charges Market Value Credit
Property Tax Support Direct Expenditures
Excess after Property Tax Support (Deficit Red)
• Customer charges in 2019 increased $596 in comparison to 2018
• Total expenditures increased $6,817 from 2018 to 2019
• Property tax support totaled $190,875 in 2019
• Total expenditures exceeded customer charges revenues by $369,631 in 2019, versus $363,410 in 2018
Golf Operations Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Intergovernmental Revenue
Operating transfers Charges for Services
Direct Expenditures Excess after Property Tax Support
• Property taxes of $5,850,161 represented 93% of revenues in 2019
• Expenditures of $6,167,733 in 2019 were $718,640 higher than 2018
• Overall departmental excess of $110,748 in 2019
Park/Forestry/Parkway Maintenance Charges for Services, Direct Expenditures and Property Tax Support
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Market Value Credit Lodging Tax Charges for Services Transfers In Direct Expenditures/Transfers Out Excess after Tax Support (Deficit Red)
• MCC operations were supported by lodging tax of $2,397,270 in 2019 (38% of 2019 Revenues)
• Charges for services decreased $1,108,878 in 2019
• Total expenditures exceeded charges for service revenues by $2,484,691 in 2019, versus $1,145,469 in 2018
• Fund balance totaled $1,525,049 at 12/31/19
• Expenditures and transfers out increased by $230,344 in 2019
15
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Landing/Loading Fees Commissions Land & Building Rent Other Income
• Airport saw an increase in commissions of $72,657 and an increase in landing/loader fees of $35,981 in 2019
• Commission revenue generated primarily from: – Parking lot – Car rentals – Fixed Base Operator
• Land and building rent continues to grow and is the 2nd largest source of revenue ($1,423,948 in 2019, an increase of $41,844)
• Total Airport operating revenues in 2019 was $5,309,496, an increase of $123,363 from 2018
16
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Airport Revenues Expenditures
Transfers Out, Net Excess (Deficit in Red)
• Property taxes of $509,148 were collected for airport operations
– Utilities (excluding natural gas)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$3,830,289
$3,218,374
$1,514,238
$558,458
18
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Tax Support Federal and State Grants Charges for Services Other Revenues Expenditures/Transfers Excess (Deficit in Red) Fund Balance
• Increase in revenues of $1,807,624 primarily due to increased allocation of state aid and user fees
• In 2019, the Transit Fund operated at an excess of $1,630,061
• Fund balance at December 31, 2019 totaled $4,498,556
• Change in contract type from cost reimbursement in 2012 resulted in gross recording of revenues and expenditures
• Expenditures increase in 2018 and 2019 included expansion of services
19
1
$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Rental income Expenditures Transfers
Excess (Deficit in Red) Fund Balance
• This fund includes revenues from nonTIF portion of building only (Floors 48)
• Rental revenues totaled $2,774,615 in 2019
• In 2019, the MN Bio Science Center operated at a deficit of $114,806
• In 2019, transfers of $1,505,229 were made to the EDA Bond Fund for principal and interest payments and repayment of advance from parking fund, transfers in 2018 amounted to $929,726
• Fund Balance totaled $1,181,303 at 12/31/19
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1
Debt Service Funds
• Tax Increment Bonds • TIF Revenue Bond • Facility Energy Improvement Loan • Economic Development Authority Bond • Public Works and Transit Operation Center Bond • Lodging Tax Revenue Bond • GO Variable Rate Sales Tax Bond
21
1
• REDA Lease Revenue Bond Outstanding – 2010 $16,215,000 – 2011 15,810,000 – 2012 15,385,000 – 2013 14,940,000 – 2014 14,470,000 – 2015 13,985,000 – 2016 13,475,000 – 2017 12,940,000 – 2018 9,904,000 – 2019 9,436,000
• Bond payments will be funded by sublease rent payments from tenants of the Minnesota Bio Science Center
22
$0
$3,000,000
$6,000,000
$9,000,000
$12,000,000
$15,000,000
$18,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
1
Tax Increment Bond
• Tax Increment Bonds Outstanding – 2010 9,841,721 – 2011 9,586,023 – 2012 9,079,422 – 2013 8,548,965 – 2014 7,895,273 – 2015 7,224,787 – 2016 6,860,000 – 2017 6,600,000 – 2018 6,330,000 – 2019 2,040,000
• TIF Bond issued in 2009 is to be paid by the collection of Bio Science Center tax increments and building lease revenues – Balance at 12/31/19 $2,040,000
• Principal paid in 2019 totaled $4,290,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
23
1
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$26,700,000 $26,650,000
$25,780,000 $24,900,000
$24,010,000 $23,110,000
$22,195,000 $21,255,000
$20,300,000
• GO Taxable Build America Bonds (Series 2010A) were issued in 2010. Proceeds of these bonds used for: – Public Works Operations
Center $23.8 million – Transit Operations Center
$2,475,000 – Fire Truck $425,000
• A portion of the interest payable on these bonds is reimbursed through federal grants
24
1
• Adopted new Accounting Standard for Pensions in 2015
• Net Pension Liability represents City’s portion of PERA underfunding – based on PERA Actuarial Report dated June 30, 2019
• Recorded as – Governmental $48,024,820 – Proprietary 16,823,664
Total $64,848,484
• Funding percentages at June 30, 2019 estimated at – General Employee Fund: 80.2% – PEPPF: 89.3%
25
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$61,538,343 $63,138,279
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Fund balance totaled $132,192,804 at 12/31/19 – Fund balance is either committed by the City Council or restricted for the following:
– Flood Control ($15.0 Million) – Sewer and Water ($6.2 Million) – Infrastructure Sales Tax Projects ($30.3 Million) – Highways & Streets ($27.1 Million) – Future Construction ($946,000) – Economic Development Loan ($938,000) – Mass Transit ($1.8 Million) – Tax Increment ($9.0 Million) – Future Assessment Projects ($8.8 Million) – Future Property Acquisition ($2.8 Million) – Park and Recreation ($3.3 Million) – Fire Station, Computer Upgrades, Airport,
Future Construction & other misc. projects ($10.3 Million)
– Police Precinct/Development Service Infrastructure Center ($10.8 Million)
– Mayo Civic Center ($6.8 Million) – DMCC ($19.7 Million)
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1
• Parking • Electric Utility • Water Utility • Sewer Utility • Storm Water Utility
28
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues Other Income (Expense) Expenses
Transfers Out/In Lieu of Tax Net Income
• In 2019, revenues from Ramps increased by $51,939 and parking fines collected increased by $31,968
• Operating costs, not including depreciation, increased by $651,981
• Net income totaled $962,276 in 2019 and $1,507,385 in 2018
• Unrestricted net position at December 31, 2019 totaled $15.8 million
• Chart excludes capital contributions and transfers out to the BioScience Center
• 2017 net income excludes transfer in of $22.4 million related to bond proceeds
• Transfers out in 2017 include $1.9 million related to consulting studies (DMCC)
29
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Income Expenses/Transfers out
Retail Sales
• Electric revenues in 2019 were $164,893,341, a decrease of $4,401,892
• Rates increased 1.9% in January 2019 and 1.5% in January 2018.
• Additional Electric Customers: – 2019 1,047 – 2018 1,102 – 2017 939 – 2016 1,520 – 2015 974 – 2014 418 – 2013 392 – 2012 583 – 2011 1,188 – 2010 544
• Operating expenses have fluctuated primarily as the result of SMMPA purchased power rate increases and the changing volume of wholesale activity
• Revenue Bonds and Electric Utility Notes of $171,180,000 outstanding at 12/31/19
30
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Operating Revenues Operating Expenses/Transfers out Net Income (Loss in Red)
• Water revenues in 2019 were $11,657,335, an increase of $840,037
• Rates increased 6.0% in January 2019 and 6.0% in January 2018.
• Additional Water Customers: – 2019 268 – 2018 451 – 2017 434 – 2016 481 – 2015 503 – 2014 296 – 2013 367 – 2012 398 – 2011 318 – 2010 219
• Operating expenses/transfers out increased by $392,368
• Net income for 2019 and 2018, as shown in the chart, of $1,122,486 and $619,954, respectively, excludes capital contributions
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1
Electric and Water Utilities (RPU) Unrestricted Cash and Investments Reserves
Unrestricted Cash and Investments
(PILOT)
22%
32%
42%
55%
63%
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
32
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues Other Income Net
Expenses Including In Lieu of Tax Interest Expense on Bonds
Depreciation Expense Income Before Cap. Contr. (Loss Red)
• Rate increases approved through 2021 based upon rate study completed in 2015
• Noncash depreciation expense of $6.2 million and interest expense of $1.5 million in 2019
• Sewer Bonds outstanding totaled $65,675,000 at 12/31/19.
33
1
75% 93% 88% 86%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unrestricted Cash and Investments Operating Expenses, Interest, and Transfers Out
34
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Storm Water Fees Revenue from Developers Expenses Including In Lieu of Tax
Depreciation Other Revenue (Expenses) Net Transfers In (Out) Net
Net Income Before Capital Cont
• Net income, after transfers (excluding capital contributions), totaled $3,543,961 in 2019
• Rate increase of 10.75% in January 2019 based on rate study completed in 2015
• Operating excesses are being set aside to fund future storm water system improvements
• Capital contributions of $2,903,829 and $ 3,010,280 for 2019 and 2018 are not included in the chart
• Storm Water Unrestricted Net Position at 12/31/19 was $19,388,915
35
1
28% 64%
112% 145%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Unrestricted Cash and Investments Operating Expenses and Transfers Out
36
1
37
1
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Department Charges Equipment Acquisitions
• Cash reserves and related interest earnings allows for: – Stable departmental charges – Interest income to supplement
departmental charges as source of funding for acquisitions
• 2019 Equipment capitalized totaled $3,839,343 and included:
38
7Ford Interceptor Utility AWD 345,502 5Ford Interceptor Sedan 153,323 2Pierce Impel Pumper 1,082,197 3Peterbilt Tandem Axle Plow Truck 778,883 1CAT Wheel Loader 938M 180,037 1Chevy 3500 4x4 127,473 3Toro GM 5910 297,269 1Peterbilt 348 w/Chip Box 129,749 1Aerial Lift Truck 208,913 1 Jet Sewer Truck 260,591
1
$0
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Equipment Acquisitions & Other Charges Department Charges Transfers In
• Cash reserves and related interest earnings allows for: – Stable departmental
charges – Interest income to
• Other charges consisting of maintenance agreements, software licenses and other professional and contracted services amounting to $1,005,515 in 2019 and $712,542 in 2018
• Increase in 2016 related to technology enhancements as part of the Mayo Civic Center expansion
39
1
Equipment Revolving Fund and IT Revolving Fund Unrestricted Net Position
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2010 2011 2012 2013 2014
2015 2016 2017 2018 2019
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Unrestricted net position of the equipment revolving fund increased by $828,500 to $5,150,059 in 2019
Unrestricted net position of the information technology revolving fund increased by $495,091 to $4,451,782 in 2019
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GASB 75 Implementation Total Net Position
Net Income (Loss in Red) Operating Income (Loss)
• Total Net Position at December 31, 2019 of $16,617,957 represents the City’s reserve against Self Insurance risk for: – Deductible Property Loss – Medical/Dental Claims – Workers Comp Claims
• Net income in 2019 was $2,472,314 (an increase of $2,939,005 from 2018’s net loss of $466,691)
• Departmental medical charges increased by 14% and dental charges increased by 1% in 2019.
• Implementation of GASB 75 in 2018 restated beginning net position by $3,670,778
41
1
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Department & Employee Charges Benefits Paid
• Departmental and employee charges are used to pay health insurance claims
• Interest earnings on reserves are used to supplement departmental and employee charges
• Departmental medical charges have changed annually as follows:
– 2019 14% – 2018 14% – 2017 14% – 2016 13% – 2015 2% – 2014 5% – 2013 5% – 2012 % – 2011 3% – 2010 %
• In October of 2011 the City had an insurance holiday where neither the departments or the employees were charged for Health or Dental Insurance
42
1
Taxable Market Value State Market Value Exclusion
• Taxable Market Value for 2020 is $12.6 Billion, up $1.1 Billion (8.8%) from 2019
• Includes both real property and personal property
43
1
44
1
2015 2016 2017 2018 2019
45
1
Governmental Funds – All Expenditures (Excluding Capital Outlay and Debt Service)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
General Govt Police Department Fire Department Other Public Safety Airport Transit
2010 2011 2012 2013 2014
2015 2016 2017 2018 2019
46
1
Governmental Funds – All Expenditures (Excluding Capital Outlay and Debt Service)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Unallocated
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
1
Property Taxes, LGA, & Market Value Credit (Per Capita, Inflation Adjusted)
$0
$100
$200
$300
$400
$500
$600
$700
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Property Taxes LGA/Market Value Credit
• Per Capita Property Taxes (Excluding Market Value Credit) • 2010 $435 • 2014 445 • 2019 632
• Per Capita LGA/Market Value Credit • 2010 $58 • 2014 64 • 2019 64
• Per Capita Total of Property Taxes, LGA/Market Value Credit • 2010 $493 • 2014 509 • 2019 696
• Population • 2010 106,769 • 2014 111,187 • 2019 118,815
48
1
• Consists of: – Statement of Net Position – Statement of Activities
• Utilizes accrual basis of accounting and requires capitalization and depreciation of all property and equipment and recognition of all long term liabilities
49
1
51
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GENERAL GOVT
PUBLIC SAFETY
Summary
• General Fund Unassigned Fund Balance at 42% of annual expenditures. (City policy is not less than 42%)
• Library Fund Balance at 35% and Municipal Recreation Fund Balance at 23% of annual expenditures. Mayo Civic Center fund balance totaled $1,525,049 at December 31, 2019.
• Trend of declining Airport Fund Balance was reversed in 2014 as the result of reinstating levy allocation, reducing capital improvement transfers and improved airport operations. Airport Fund Balance has a balance of $6,019,604 in 2019 an increase of $1,489,806 from 2018.
• Transit fund revenues continue to exceed expenditures increasing fund balance to $4,498,556 at December 31, 2019. Much of this balance is designated for additional bus purchases.
• Capital Improvement fund has $132 Million in reserves for future capital projects as outlined in the City’s capital improvement plan.
• Parking fund has $16 Million in reserves for future capital needs through annual operating profits.
52
1
• Electric and Sewer Utilities servicing $237 Million in bonds (including Crossover Refunding bonds) with future access charges and user fees.
• Sewer rate increases have allowed the Sewer Fund to service outstanding Sewer Bonds and build cash reserves for future capital improvements.
• The City’s SelfInsurance Fund reserves at December 31, 2019 totaled $16.6 Million an increase of $2.5 Million from 2018. Fund reserves increased for the first time in the last 5 years.
• Equipment Revolving fund unrestricted net position increased from $4.3 Million in 2018 to $5.1 Million in 2019. Amount still below the a high of approximately $8 Million in 2012.
• The activity of the DMCC, a separate nonprofit corporation, is included in the fund financial statements. DMCC activities are being funded with sales tax collections.
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STUDY SESSION ITEM ITEM 2: Sustainability Update
The sustainability team will be providing an overview and update on the top focus areas as noted in the attached City of Rochester Sustainability Report. In addition, the Energy Commission will also be providing an update on their work related to implementation of the Energy Action plan.
Attachments: • Memo: Study Session on Sustainability & Energy Action Plan • City of Rochester Sustainability Report
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SUBJECT: STUDY SESSION ON SUSTAINABILITY & ENERGY ACTION PLAN
DATE: JULY 23, 2020
CC: STEVE RYMER, CITY ADMINISTRATOR CINDY STEINHAUSER, COMMUNITY DEVELOPMENT DIRECTOR KEVIN BRIGHT, ENERGY & SUSTAINABIITY DIRECTOR
Please find attached the project status report from the Community Development Department related to our focus area of sustainability. The sustainability team will be providing an overview and update on our top focus areas at the July 27, 2020 study session. In addition, the Energy Commission will also be providing an update on their work related to implementation of the Energy Action plan. This update will include their progress on achieving the energy goals identified in the plan and priority areas for 2020- 2021.
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CITY OF ROCHESTER SUSTAINABILITY REPORT Community Development Department July 2020 CITY OF ROCHESTER ADOPTED SUSTAINABILITY GOALS
_____________________________________________________________________________________________ Project: Sustainability & Resiliency Task Force Foundational Principles: Social equity, environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, manage growth and development, balance public infrastructure investment Goal Area: City for Health, Transportation, Energy, GHG Emissions, Vibrant Neighborhoods Key Actions: Development of action plan, public engagement, community collaboration Scope The Sustainability and Resiliency Task Force, a diverse cross-section of over 40 community members, was created to ensure the community has a voice in guiding the development and implementation of an action plan with input and guidance from all of Rochester’s residents. The Action Plan will focus on five key areas – Vibrant Neighborhoods, City for Health, Transportation, Resilient Economy, and Greenhouse Gas Emissions – highlighting the economic, environmental and social resilience strategies that can help guide the City in future decision making. Staff Update
• Revisiting outcomes of the planning process so far, review draft vision statement • Community Listening Advisory Group created to react to and shape process for community engagement • Organizing community calendar to schedule community listening appointments • Finalizing the Sustainability and Resiliency webpage that will share updates and engagement opportunities
Sustainability Goals
Packet Pg. 60
Project Timeline • April 2020: Monthly task force workshops began • June & July 2020: Community engagement plan under review and community listening sessions will begin • October 2020: Task Force will debrief on community listening • November 2020: Begin drafting an action plan • Spring 2021: Draft Sustainability & Resiliency Action Plan to present for review
_____________________________________________________________________________________________ Project: City of Rochester Green Team Foundational Principles: Environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Foster team-oriented environment, manage growth and development, enhance quality of life Goal Area: Energy, Transportation, GHG Emissions Key Actions: Development and implementation of strategy plan Scope The City’s Green Team was launched in 2020 to implement sustainability actions and initiatives within the City units, with a goal of integrating environmentally preferable practices into City operations. Team members assess current operational practices identifying opportunities in procurement, transportation, energy, waste, integrated pest management and landscaping, and greenhouse gas emissions. Staff Update
• Adopted polystyrene ban in all City facilities, January 2020 • Building Temperature Guidelines were accepted by City Administration, May 2020 • Current initiatives include a robust review of the City’s procurement in 2019 and a review of the current
waste management system • Creating a high-level priority list and draft strategic plan to present back to Team in August
Project Timeline
• Currently developing a strategic plan and timeline for each priority and its performance metrics • Completion of a formal work plan anticipated by September 2020 • Waste priorities will be confirmed at the July 2020 meeting
_____________________________________________________________________________________________ Project: Air Quality Monitoring Program Foundational Principles: Public safety, social equity, environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, manage growth and development Goal Area: City for Health, Transportation, GHG Emissions, Vibrant Neighborhoods Key Actions: Data collection and analysis, Community collaboration Scope In 2019 and 2020, the Community Development Department and the DMC EDA purchased 14 air quality sensors to install throughout greater Rochester and the downtown core to better understand air quality concerns. These sensors will monitor air pollution in real-time throughout the year, data is publicly available for review and download on PurpleAir’s website. The data will assist the City in policy decisions around transportation, planning and other key priority areas, while monitoring air quality as development continues. Staff Update
• All 14 air quality sensors have been delivered to their respective locations and stakeholders • Working with the stakeholders to assist in getting sensors registered and online
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• Joining the We Bike Rochester August meeting to discuss ideas for future collaborations on data collection Project Timeline
• Sustainability staff anticipates all monitors to be installed and live on the PurpleAir map by August 2020 • Collect and analyze data with Mayo and the University of Minnesota, Rochester • Early 2021, work MPCA to develop a robust Air Quality Monitoring Program
_____________________________________________________________________________________________ Project: Bike Share Committee & Program Foundational Principles: Environmental stewardship, social equity, fiscal responsibility and sustainability Strategic Priorities: Enhance quality of life, balance public infrastructure investment Goal Area: City for Health, Transportation, GHG Emissions Key Actions: Community collaboration Scope The Community Development Department partnered with 10 agencies and departments to offer a free bike sharing program for the community in 2019. Over 1,200 riders used the program during the summer of 2019 to run errands, commute to work or job interviews, get groceries or just enjoy the City’ 100 miles of bike trails. In the spring of 2020 the group reviewed ridership for the program and decided to grant underutilized bikes to individuals or organizations within the community who demonstrated need. The bike share and bike grant programs allow community members with mobility challenges access to reliable transportation. Staff Update
• 34 individuals were awarded bikes for personal use • 40 bikes were awarded to 8 community organizations • Partnered with Pata de Perro (Rochester Community Bike Club) to salvage unclaimed bicycles collected by
the Rochester Police Department o 15 bicycles were picked out and transported back to Pata de Perro’s shop, where they will be
distributed to community members in need or used in the Bike Grant Program • Reviewing use of SHIP grants for bicycle friendly designated businesses and organizations in the community • Partnered with Lime to bring back the scooter-share with the addition of electric bikes for the 2020 season
Project Timeline On-going _____________________________________________________________________________________________ Project: Energy Benchmarking Program Foundational Principles: Environmental stewardship, fiscal responsibility and sustainability Strategic Priorities: Manage growth and development Goal Area: Energy, GHG Emissions Key Actions: Community engagement, data collection and analysis Scope The Building Energy Program seeks to help buildings limit energy waste and reduce greenhouse gas emissions. Participants gain insight into the efficiency of their buildings and their relative performance to peers, encouraging energy-saving actions. The program provides performance transparency for building owners, operators and municipal leaders aiming to achieve energy and climate goals. Staff Update
• Wrapping up utility data collection from new and existing program participants
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• In 2020 the benchmarking program welcomed its first hotel, Hilton’s Home2Suites, with another on deck for 2021 when construction completes
• Other new participants included Channel One and St. Mary’s Cascade Meadow Environmental Science Center • City was awarded a MN GreenCorps member for the 2020-2021 service year, who will assist with recruitment
and help current participants identify and implement energy saving opportunities Project Timeline
• Data analysis will begin late summer 2020 • 2019 Benchmarking Report completed and published in fall 2020 • 2020 program year recruitment will begin February 2021
_____________________________________________________________________________________________ Project: Downtown District Energy System, Analysis Foundational Principles: Fiscal responsibility and sustainability, environmental stewardship Strategic Priorities: Manage growth and development, balance public infrastructure investment Goal Area: Energy, GHG Emissions Key Actions: Infrastructure development Scope Several City and County government facilities are served by the Olmsted County Waste to Energy Facility (OWEF), a steam-based district energy system, which will need replacement in the coming years. As a result, the County, City and the DMC EDA are evaluating a building-based and a second district energy system (DES) option in the Downtown Waterfront sub-district. The study will inform future capital planning efforts - a DES could be leveraged to support further private development, incent affordable housing and build on RPU’s 100% renewable energy resource plan. Staff Update
• Olmsted County has decided to install independent heating and cooling systems for their facilities, City and DMC EDA are moving forward in pursuing a DES
• Next stage of analysis would be for business as usual case vs 180-degree DES hot water loop case • Staff currently preparing a presentation, in accordance with RPU, for City Council
Project Timeline
• The project team aims to bring forward the recommendation of further analysis to City Council in August • Pending approval, the study may move to the next stage of analysis later summer 2020 • Completed study by early 2021
_____________________________________________________________________________________________ Project: GreenStep Cities Program Foundational Principles: Social equity, fiscal responsibility and sustainability, environmental stewardship Strategic Priorities: Enhance quality of life, manage growth and development Goal Area: City for Health, Transportation, Energy, GHG Emissions, Vibrant Neighborhoods Key Actions: Data collection and analysis, performance measurement Scope Since its inauguration in 2010, the City of Rochester has participated in the Minnesota GreenStep Cities Program, a voluntary challenge, assistance, and recognition program to help cities and tribal nations achieve their sustainability and quality-of-life goals. Step 4 recognition is awarded to cities who report a minimum number of core metrics for the previous calendar year. These metrics aim to show the aggregate, quantitative results of taking multiple GreenStep actions. Step 5 cities show improvement in the Step 4 metrics.
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Staff Update • Rochester received Step 4 and Step designation for calendar year 2019 • Rochester has completed 88 out of 175 possible actions • Recently joined the Sustainable States Network Community Energy Challenge as a participating GreenStep
City Project Timeline
• Data collected and updated every spring, submitted by June 1st • Cities receive recognition in July
ClimateSmart Municipalities: Through its participation in the GreenStep Cities Program, Rochester was one of five communities chosen in April 2016 to participate in the ClimateSmart Municipalities program. Minnesota municipalities were paired with award-winning climate-smart communities in Germany to accelerate progress toward a cleaner and more efficient energy footprint. Representatives are sent to Germany to learn about innovative programs and practices, then share their progress and insights in Minnesota. They also have the benefit of working with their twin community, while a delegation of municipalities and leaders visits Minnesota each fall. Staff Update
• Participated in a virtual exchange in June 2020 • Tentatively scheduled to host German delegation in fall of 2020 (pending COVID-19)
_______________________________________________________________________________________ Other Ongoing Projects & Cohorts:
• Food Access Assessment Planning • Sustainability Asset Map • Sustainability Website • Energy Commission Support, Implementation of Energy Action Plan • LEED Green Associate, Staff Training • Sustainable States Network, Community Energy Challenge
Upcoming:
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Printed On: 7/23/2020 Page 1 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date
Comprehensive Annual Financial Report and Audit Review Finance Discussion 60 Minutes 7/27/2020
Sustainability Update Community Development Update 30 Minutes 7/27/2020
Council Meeting 8/3/2020
Rochester International Airport Master Plan Airport Update 45 Minutes 8/10/2020
Trust for Public Land Initiative Parks and Recreation Discussion 8/10/2020
Council Meeting 8/17/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 8/24/2020
Council Meeting 8/31/2020
Labor Day 9/7/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/14/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/21/2020
Review of Recommended 2021 Operating Budget & 2021- 2026 CIP 9/28/2020
DMC EDA Update DMC EDA Update 30 Minutes 10/5/2020
Bring Back the Clock Fire Dept. Update 15 Minutes 10/5/2020
Silver Lake Dam Modification Presentation Public Works Discussion 40 Minutes 10/5/2020
Age Friendly Community Mayor Discussion 20 Minutes 10/12/2020
Assessment Policy Public Works Discussion 50 Minutes 10/12/2020
UDC Update Community Development 45 Minutes 10/19/2020
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Printed On: 7/23/2020 Page 2 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date Maxfield Housing Update Administration 45 Minutes 10/19/2020
10/26/2020
10/26/2020
Bury Power Lines; policy RPU
Rental Property Inspection Ordinance Bldg. Safety
Bicycle Master Plan Community Developmnet April/May
LUPA Market Study/Annexation
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Printed On: 7/23/2020 Page 3 Study Session Schedule Working Copy REVISED.xlsx
City of Rochester - Rochester City Council Council Study Session Items
Discussion Item Responsible Dept. Impact Estimated
Time Review Date Infrastructure Liabilities and Financial Planning Admistration/Public Works
CIA- Policy Establishing Community Broadband Goal for the City
Administration
RST Airport Master Plan Update Airport
Community for Health Update Kevin Bright 30 Minutes
Postponed Items - COVID-19 Towards Zero Deaths Abby Tricker -Olmsted CO
Riverfront Re-imagined Administration
Single Family Rehab Program Update HRA
Proposed Stormwater Ordinance Revisions Public Works
Library Library
Agenda Packet
- This meeting shall be conducted pursuant to Minnesota Statutes Section 13D.021 and members may appear electronically. Should any member appear electronically, all votes shall be taken by roll call and each member of the Board will be able to hear each other. Public access will be restricted to comply with State Health guidance during the pandemic. Current room layout allows for approximately 11 individuals to attend.
-VIEW MEETING: Citizens are encouraged to view the meeting by either watching on Spectrum (Charter) channel 180 or 188 or via live streaming the meeting. The live stream can be found at the web address once the meeting starts: www.rochestermn.gov/agendas.
Study Session Meeting Items
Attachment: City of Rochester Vision, Principles, and Priorities
1. Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
Attachment: Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2. Sustainability Update / Community Development - Estimated Time 30 Minutes
Attachment: Sustainability Update / Community Development - Estimated Time 30 Minutes
3. Study Session Schedule
Attachment: Study Session Schedule
City of Rochester Vision, Principles, and Priorities
1 · Comprehensive Annual Financial Report and Audit Review / Finance - Estimated Time 60 Minutes
2 · Sustainability Update / Community Development - Estimated Time 30 Minutes
3 · Study Session Schedule