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HomeMy WebLinkAbout3.A. Presentation by Springsted Inc r '-~ ' ,.... -- .....;.. .' ". ., .' . '..;:. .'. ..-- 3' "', . '.;" ", .. ,..,' ...... . . ; ,'. .....,.;,.,;... '. ;..; "q ~ ".;' " '. , . '" .' .. . ..... . .. . . . , . ,. . . .: '.' .... . '., . .... .. '.,' .. . '. . ..... . ...... . : . '. . .' . .' . . ". . . . .' ..' . . SHAK 0 " ' 0 '^ :,:t, 0,' 0 ", ,.. " ",",' :...,', . PEE'., ", '. rhEfft."o~ ,,,:, .,; n(f~{ .. tUMre IM7Jd ~ 1M lCfyep " .':,' .;;, ~~~L, "~9D Q rt:lYt:i'::c:%5:.9;~.\,> ' ".~u' aBI'to' Sh/Kopee': .. ... roc..., I : r a '.' . s . " . .;,.... . . :.' .... '., ." '. '.' .'. '.~ .... .', . ...... ..:"... - .'''' .. '" ',. -;--, . .;;:~; " ..,' .' Budget and Tax'Decisions " .",: . -. ",.' .' ". .... - .. '.'. . " '. - - ~., .... .'.' . : .. . . ..' '. .' . . t . ," ... ... ,:' ..... '. .' . ..' .. , . '. .' ". .' . . , '.' . . . '. ..... .':."': . '. . . . . '.' .' :.' , . ". . .... . .... '. ',.,,' . 1 · '.;.' " .. ' .'. ~...'.. '., .... .';. . .'.... u..' _" ..' . ". . .. '.. '.' .'. PRESENTATION TO ,......... .... .. .... . ,... .' . '.. . '. .... ,', .. ....... ,'. . .. , .. . .' . ...., ..:..' . '; Ii '.. .,'.. .' >< CIty of Shakopee, MInnesota "..; " .... . -.' ". .' "". . . '. ...... '. .' '.' '. . . 1857 20<<)7 . . . .0' . ..... ...... ...... ........ '. '. ' ......~'. '.. "...... ...' . " . ". PReSli:f\!tEtRS: ," David N ;~Ma3~IUI)Jrl!ilY" ,.', " " ..' ':' ' ", " ....., "."" . ..... '. . ',;,; .;;.".. : ..... .... ..... Chairman. . ". ... ..' . ',. . . '. '. . ". I . . . "; . . . . .., .... ..' . . . '. . .' .' . '. ..... . . .' .' . ,. " . . .': . . '. . . . .... . . . . .;.;...... '.' .' . '. '. '.' ..H,' ..... ' . ..' Sharon G Klumpp " . , .' . .. : .... . . . . . . '. "" ,... . ..... .... ,..' '. '.' . .... ' "'. ','. ' ", ',' . " Senior Vice preSident':..., " , "" ......, . -. -. -""',' - .,' . . ., '. . , .' . . : .., .';. . '. .',. . . . Public Sector Advisors Spri sted ~ ,- - , . . . .., . ., , '. . '. . . .' , " -. .' -; . -,'. ' ' . ,~ .:.. ,. '.". ...,. - ' ." '. . , ."""- ,'. . ...., . .,' , . , - . . .' - . '.' ' . . -. "', ,.'- '" " " . . .' . . ..,' ,'; '- .: ...,..... ' , ' . . ,,' ...' . ".' """'. '. '. ,..; . , ' ........ ." ..., . ...'. . :'. '. . . ':, . '., """ " '''. ' , " . " '. ,'. . " '''', ,.'" , . ", ,:.' . " .'; . , . . , · 0 b ..J . · "" .; ':':", ',; '. ;;.;:; , , , . .t I ".. ,', ",',' "..' .', ~ec lves ,,' ...',. ..... ..' '", ..' "..' "',' . .. . ',..' ..... ", ..:" .' . '. '.. '. ..' .; " ;.~;; y ,).;;,' \;;,;' :..;'c'r,;' ';,,'.;', .. .;' c.', ;.; ;;. .., .' . '" ';.,'; ..' . '.; .' . . .', ..' ....' ". .. . . '. '. . ... '. '. . . :.. :. ,:. .;..... .' ,;..;.;,.,....... ';, . ......, ' . :~{lgJ~,nti& how:tBenatl6n'aleconomy is affecting the . , . " :. :., -. - "-'. - , . .;.'i..City of S'hakopee,," . " . . . ...' . . ' . . . .. . , . . . , .... ." .' "',: D~termine Rrocess that will be used to make budget ..; ,', .' ';..'... .'. " ..... - ..:- .' .... ....' . ' d . a,a ,'. '. ~. fSh k ".,~;;~.cISIOn$ .or _:. a. opee " . .' ...... .'. .., '. .'. ......' . . . . . :.,t;;.epsitloning tne City over a multi-year term " . . ;". . '- ;",. . . . '... ...' .;... . . . .,' '.. .. '. '. . '. . ". .' . . '. ,".' '. ". '. . .'. ... ", .. '. . , :' . , . " . . ,;', . .' ',' .' . . .. . ....... . . , . ',: . . " ' . " . ...,. . . , ' . . . . . , I . . . '..:. ' . ...., " ". . .' . '.' . .. ' .' . .. . . '.' ".' .' '. . .... . .... " .... .' " ..... . .... . . , ,. '. .'.,'...... ..,. ,. ':" .'. . '. . . .; ..,... ...' '". ' ;.... Public Sector Advisors 1 pringsted . " . .',;.' . ; .... . . " ' , ',...,... . .' , ' ~ .~ . . " '. " ....... . .' ".. /". .' , ' ..... . . ~ . , . '.:' . " . . "" '. " ". .... , . , ',...., ." '. ..'. . .'.' .,' ' . . .'. . ' '., '.' .' '. ,.... .... > . ". ". ',' .... " '. '. ..'. ..." .' . '. '~" .".:...'., ' . ...,. '. ";:" . .. " , .' . . .....,... "," . '..... ....' _ .... . .,.' . ..' . . elty €)ft}q~~l~,~Je;hangll1~:"~R,~fSp~,ct~yes ...., . . ......' ..:'...: . . '....'~ '. .,..... . " '.....,.. . .,' .' . . .,.,.... ...,. :"; .,' . ,." ....... ..... . ., . ....; . . .". . ' . . : ," , . .. . .' '.' .". . . . . .' i,.'. " '. '." ,... ". '... "; ". :' , ; : :. . .;'.' . " . ;'., :..'..... . .' . ". '.; ....~,,. ", . .,. . ,.,.,'i:,.tasU:J,S. rec,ession - 1991 . '. .' --:- --." . " . '. ", ....., , .. ' '... , ),:,H,pw '~a~y public officials have experience ", .,' . ',L.... ';, . .," ";\ }!!';;'In ~J~~~ssloq?:' . . ,;. '., "', . , ; ," . '..'.. ... ", . .. ....':;,~ .~,o.~,~.prblc>ngegI~cess ion? .'. . .'... ,,; '..:,',.. ,', ". · :;;ror most: periOd of sustained growth .' ~.~::::..,: ;,'" )" ';::"'<;, . '. ..'. '". . . . , ....., . . ' ..., ..' .. ' 'j2009:fJocalleaders must re-position their jurisdictions . "'--"" -:-". , " , , ,",' '. , . , .'. .: '.,.,. . , '. ': ".; .. .' , '. . . . : , " ': "... .' , ... . . .. .. . '., ,.' ,.,;. ".' " ' . .'. ',.. ".: . , . ".' '. '" . , . . . . '.... ,. ',: ':. ,.' .... ", . ' ,'" . '" ' Public Sector Advisors 2 pringsted " '->' " . .,........'.., ''',1 'j c .., . '.' :'.;-... .....:.... ,i..'..' ;""" ,'F'" .':'. ,', .- , ,. . ' . " "'. '" ,'. . ,', . .'.. " ,,' . " . .... ..", . . . .' . '". ' ". .' . ..' '. , . , ;. '~'" '. . . . " .. ", ,.' '".. .'~ ' . , '- .' ,..... Wh ' Y ..'.. 0 . ;'.' · , -.;: ':'I'M" as?,?? at.~>olJ.:t:~...fg~n~z&~~()afl:::,: ~n... ,..et. . · . ' '.' ,>s. ...,~::. ,i,: ;.';:' <'" . ,>;;,' .' . . .' .. '. " ..,.. . . " . .... ,'. ..' , , :' .. ....: .'. ., . '. ..'.. .' ...',' ",' . ., '. :.<' ;', ',' ", ..' . ." ,... · Prolonged patteRl'-of l'always'growingU'\, '\;. . '. '--.;:-.:-..' -'.' - ;'.."', -.-'." ''; '.'J .'. ,-,.-, .,' -.- -." ' .','. '. '. ,. ' '.: "','j' ,': "';'l';'<' .:,: . '. · '. " ... StC3,,,bJJiJy (stelad~Ja~r~~~ L "i ::. ,/ ;.,": ,,",' . :. '.. ~ .... '. , ,: '...... ". . . ,. . ..... ',' '... " ..,..., '.' '. . ," .'....'. '.' , ..:..:..:.....'.. . ,.,'.. . .,',. '. , ", .' " " ' '.;' .' . · Managers crying \No If againl" "'.';' . '. ..'., .. . ..'..... . ' . ". ." .' .; .".,.,. '. . . ,... , ,: '. " . ' ..' . , . .. '. - ; . '. . ; .-~. ;'.:",. - ~,' , ,,".: " . '.., .;.. ..:.. '.. '. '.' ", . " . ". .-'" '... '... , '. ..,....... .. " ..' ,. . '.' . . . , Vestedlhtaresf in expanded systems ".;' ...'. .,: . ,__'_. __ _ .. _, h. . ;-:'. ... . ", . .' -: _., . .'. ". '. ,. . ,..'f,. " .:(" .. ..... '" '.... " . . . ,".. '.' . ,., ." . , '....,' , .,' .. · Long:term od~hort-term focus? \;',':~;.';,:" '. . . - - -- ~ ~ ", . - - - . ,'... .'.. . . ..' '. ' '. ". ,'" , ' . .. ". . ..... . .' . ". ,." . .' . . , . .. ., . ; . , " '. .. " ' . ...., ." ". . . . , ' . " .' ....... . . ' , . . '. ' , , . .. .. . '.' ,. . " '. '. " " . '. '. ' " , ..... Public Sector Advisors 3 pringsted , Public Sector Advisors 4 pringsted <Ii , . " ". .', . ,.' " .' .' ' . .'..' ", " , . . . . .. .'., '. . '.... .... , ..'.... ,..'. ..,. . . '. . . ' '..... ..... ,.": " . '.. '... . '.' ". ......... . . . ..." . '. . .. ... ' . ...' .. ' .. ..' ' . .,...,. .. . ,., . " . . '" . '.., '. .... ".. '.. ..' . . .... .. . .' " . ','.'.........:' . ....'... W S b t th" F" 11 ,,'... '.' ',... , e U illl .' e T51~ oWINg.,. .>,"': , '.. . '.... . - "'.. '.. . .... ' .'. ,', . . .' ..... '.. ..,. ...'.. " '........ . ..,.. .'. .', . .' :. ..,. ',' .. "" . .. --". , . ;. ,." ".. '.' ' .... . . . '... '" " · Current economic events ar~: Rro!~,H[lP; qn ecgnomy Ii k '. .' .,> recovery will ta eYcears"'::':' '.'" '.,.'. ,,'i" "'. ," "" " . . .' '." ,- . .. ....' '... '.'.. ". '.' . . ,'. . . . " .... ,..', .... ". .' '..'... . , . .....,. <" :, . . · When the economy recovers, it wilt probably be below . .. " ,-- . ~...; . ,--,- ~ .' " . .,.., . " ':. ." .. ." .' pre-recession leyels' ';, ;:",:'" <<: . , . ,,',- -,' . ,.... ," .... ";,; .' , " . . ," .';;;. "". ..... ," .. '. '. " . "'. ' . " · No consensus.on the effect of,dt1)veIOpment and . .- .' "', , " -. . ' . .' ". - . "", I ,.. '.~ -'; - , , ., . . '. ..., , ...... .... .' .. ...,... .. .... .. ',.. '. propertyval~es;,R~9P.rty taxa$ wllJfluctLlste.," . . : " '., . '. ' . . ," .',., . '..; . '.," . '. ',' . ... . '. .... ~.~.. ... . ". , ...." .' ,." .'. " ,. .' . , .' ...'. '.' ..., · Politics: reluctance, to raise property taxes; fee's:; '< . .' '.- . , :. ........ , ..,' - ~ ;- -', ,~ '. ' ~ . . ~ " . . -.. ,- , '- .'.. ", . . ...,...'. .,., . , .' .' . .... ..., . .. ,..,. · Potential fo~'rJ1,ultiPle adverseirnR~~t5:,pncities ,".' . ... . ." " ..., . .. . ...... ,. ',..... .... '....... :': . ....,... ' . . ," .,', "'" ....'. ' ."..'. . ..' '. '. '.. ' . . . '. '. . '", .'. . '. '.., : ". . ..' ,... . .... ' . '. " ' . , "..,.. ...., '. /, . , . " ...,. . . ' . '.., '. , . Public Sector Advisors 5 pringsted Public Sector Advisors 6 pringsted Public Sector Advisors 7 pringsted , . . Public Sector Advisors 8 pringsted Public Sector Advisors 9 pringsted Public Sector Advisors 10 pringsted . . . . ..., ;, . . "..' " . " .'" . . '.' .'.. '. ' ..... ,..' . ., . ..,:,",; . , .' , . '. '. . . ' '...' '. .' .' . :, . '. .'.", " . , " . .. , ',., ." " ,'. . ' . . ..:. .' , ,'.' ." , . ,... , '.': .... ,. , . . . . o h B th W h~:: '" . ,<<Cd":/~ , y e ay . . . . ..'... .. '. ..... '.... . ". '. "';"" , .. .'. . .' . '. . . . . . .. . " " .,.' .,.. , .' . '. '.' '" . .....'. ". .'. " ..'.. . '. . , , ' , " '..,. " . ". . .... . ...,... ..... ....., . ..., .'., ....' . . ". . ' ..' ,;. '" '.' , Energy costs'" ,~.;', ..j A ': ,C\:::. . , .' " , , '.', , '. . .,.. . ..,., ' . '... . - Higher operating and some capital' costs':, ~..~, " . ---. --..~ . , . .,.., ,., . . .' ,.' ,,', . .' ...... ., . , . '. , ' '.' ;' ',' OPES r .. b.rt.' .' .... .... .'. . .' · I a I I Ie s '. . . ., .. .. ..' ..., . '. . '. '..,., . " , ..' . , : ' , . ..,." . . ' - Hitting financial st~~ements.::; ".'. ":>:/ C:, , ; . , .' . ' . . . , . . '. . '. "",' :. '; . ' . " " " . " ". ' · Public workforce trends: . ,.i: .; .:."., ' .,......' . . .,., .,.,.-- --:- " ...'. . - Oelay in planrt,d retirements '.' ..' .> ..,.. . .. '. " .' .":. " . .. ........ . - Increased training needs';" .......:.,.', .;' .> . u.." ._ _ . .' " ' ..' .... .., " '" .' ' . . ,.. ,....,. .,:' ..' .'. . ..' . . . , '. . . , ,. .,.,. . '. . . " " . ... , ' . . ." . " . . .. . , . . . . .. . '.' , " . . " , . ." . , , . " ",. . , . .. .' '. ..: ' '.. .,.'. '.. . Public Sector Advisors 11 pringsted . . Public Sector Advisors 12 pringst d Public Sector Advisors 13 r i n g sted Public Sector Advisors 14 pringsted Public Sector Advisors 15 pringsted Public Sector Advisors 16 pringsted . Public Sector Advisors 17 pringsted \ : Public Sector Advisors 18 pringsted Public Sector Advisors 19 pringsted , _. " ' ' \ I " , , .. , - -- - :-. " .. , ' " "j' ,'" ~ --* m'm_,~ ", U: ,," ' ~ * A ~~ '" " ",. Il: 4'_~ I ' ' ' , I ',.. ,,, 7 ' ~ ' , " ' ' , , , % %._- l .-, '~ 'w' ' ' .. " ! , , t , i , "mm · m2mm t . - '"'' I"'" ,." I , , " " ~ " , , " .. ' .,,_. " ,'sn " ;~:;;. - , .. ", " ' ' , , ' ,,;:'_~ ' :, ,,~ ~-~~ Public Sector Advisors 20 pringsted Public Sector Advisors 21 pringsted Pub Ii c See tor A d vis 0 r S 22 r i n g 5 t e d Public Sector Advisors 23 pringsted , , . Public Sector Advisors 24 pringsted Public Sector Advisors 25 p r i n g sted , Public Sector Advisors 26 pringst d Public ctor Advisors 27 p ri n g sted Public Sector Advisors 28 p r i n g sted Public Sector Advisors 29 pringsted ': ":',-,, >-',-, :' ':-', ""',' ',:'-: ,'" ,':" :~<' -- " " :"-' ',,' "","" " -: -:' ',;' ",' <~, ' ',: ,:" ---- ," ",': :': ,,:" , , , ,- . , : :.-:-' " ---<:::,:,::'--,,,>':::':~"':?-: ,'-': ",><~>~:_:,:',:, J :, '>--:':~:":--::--:: ;',,:<>;' ::<";'::-',:.':' ", ':-:;_'>:,:' ,> : <',: , " ," ;:':':" " , , -- -- , ", " , ' - -' -,,', ,- , '" , ' ,- ~ _",-' '", ,,' __ 'C-', .. ,'",,, - 2010 additional gap: $750,000, with assumptions of -. Revenues: 09 taxes, transfers increases continue same levels - Expenditures: ... Salaries: 1.5% for soheduled step, all others 0% .. Health insurance: up double-digits .. Suppli~sana services: 3% -If these are permanent changes, then ,-2QJ1. additional $250,000 If ~01 Oone..time or non-recurring, then 2011: $1,000,000 · Assumes tax levy in dollars stays the same Public Sector Advisors 30 pringsted . '. , ' , ' "" "",,', ' ..', . ^""'" ' " ',' " " , " " ' , , '.', , .' . , , . ," ," " , . ". ..., " . '" , " " , " " ,.,,', ,. " . . . ' " ' ' . . ,,' ' "" ',', ".,., , ' , ,,' , . " '," , ' " ..' . ,', ' .' . " ," . ' ' ,', ,,' , , ' , ' ", '. . . . .' . , ' , " ,. .. , ' . . " , .., '., .." " ... , , " .. . , , ,', ' , ' " ' , ' . ','. ,', , , " ',' '.. "'0 "c,~".,.,,:,Discussion and Questions .' ", , ' ,', ,'", ' ", " " ' , . '. . ',.,. . . . ". ," " :.',' , . ' '., '", ", . . '. ' .,.' ','" ,"', :., ,... . "', ,..,.., ' .'. ... ,', .' " ", , ' '; , ',:' ',' '" . ' , ...: .. , ,," ',. ' .. '. , '. ' " . . . , ,", ' ' ' .. . ',:" , , " , .. ., , " , " ' , , ' ",' . , , ".., , " . ,,' .. Public Sector Advisors 31 pringsted Public Sector Advisors 32 pringsted Pub Ii c Sect 0 r A d vis 0 r S 33 P r i n g s t e d Public Sector Advisors 34 p ri n g sted Public Sector Advisors 35 pr in g sted r Public Sector Advisors 36 pringsted Public Sector Advisors 37 pringsted Pub I ic Sect 0 r A d vis 0 r S 38 P r i n g s t e d Public Sector Advisors 39 ringst d , Public Sector Advisors 40 pri ng sted