The people of Prior Lake have a powerful vision and great hopes for the community’s future. For the 2030 Vision to become a reality, the City must ensure the financial resources are available, in the amount and within appropriate time frames, to fund the operating and capital costs associated with implementing the Strategic Plan. Financial strength includes always assuring that financial resources are used to achieve maximum value for the lowest reasonable expenditure needed to achieve the 2030 Vision.

FIVE-YEAR GOAL: Diversify and maximize the City property tax base.

TWO-YEAR OBJECTIVES:
n Ensure the completion of Deerfield Industrial Park with high valued structures.

n Encourage commercial/industrial development to create an inventory of immediately developable land in accordance with the City’s Comprehensive Plan.

n Strive, along with Scott County, to establish a more accurate relationship between the assessor's value and actual market value.

n Promote residential subdivisions which add high quality, high value housing at all price points.

FIVE-YEAR GOAL: Identify and develop non-tax revenue sources.

TWO-YEAR OBJECTIVES:
n Develop and grow non-tax revenue sources to minimize property tax impact.

n Annually Review and update general City license fees.

FIVE-YEAR GOAL: Minimize capital and operating costs through collaborative efforts with other public and private entities.

TWO-YEAR OBJECTIVES:
n Complete construction of the joint public safety training facility.

n Pursue SCALE initiatives providing additional cost-saving opportunities (e.g. joint powers agreements, equipment sharing, mutual aid, service swapping).

FIVE-YEAR GOAL: Support locally controlled and dependable revenue sources.

TWO-YEAR OBJECTIVES:
n Support legislation to eliminate market value credit.

n Support legislation to eliminate levy limits permanently.

n Support legislation to reinstate sales tax exemption to local units of government to eliminate double taxation.

FIVE-YEAR GOAL: Encourage additional community funding initiatives.

TWO-YEAR OBJECTIVES:
n Structure funding referenda to support needed capital facilities which cannot be otherwise financed (i.e. park and recreation facilities).

n Leverage privately funded trust (i.e. Minnesota Land Trust and Jeffers Foundation) to support community-wide projects (e.g. land acquisition at Pike Lake, interpretive center at Jeffers Pond).

FIVE-YEAR GOAL: Implement efficient expenditure reduction measures.

TWO-YEAR OBJECTIVES:
n Prepare annual budgets which reflect the most cost-effective means of acquiring goods and delivering services.

n Evaluate City services in the context of quality of life and cost benefit to the taxpayer.

n Facilitate cost effective purchases by developing a vendors list and qualified engineers pool.

n Pursue multi-jurisdictional cooperative efforts to facilitate cost-effective purchasing.

FIVE-YEAR GOAL: Establish “Financial Performance Gold Standards” to ensure the financial health of the City. Such criteria support several purposes: (a) to serve as best practice measures to strengthen the City’s financial position and maximize the return of the taxpayer dollar; (b) to communicate the fiscal performance and condition of the City to residents in a consistent manner; (c) to facilitate the setting of policy and financial direction by the Council with resident input.

n Achieve an Aa2 Bond Rating – strong credit rating by Moody’s Inc. provides low cost financing for the City’s general obligation bonds.

n Maintain a 45% General Fund Reserve balance – OSA (Office of State Auditor) and City Auditor recommended reserve to provide adequate cash flow, offset revenue shortfalls and insurance for unforeseen catastrophic events.

n Achieve the lowest city property tax rank in Scott County – favorable tax rate provides stimulus for growth of residential and commercial property tax base.

n Maintain 100% funded Fire Relief Association Pension – reduces reliance upon future property rate increases.

n Limit expenditure level to a 98% general fund budget outcome – ensures fiscal accountability at the highest level.

n Manage a 95% investment position of all City funds – active investment realizes best possible return and fund stewardship.

n Target a 60/40 property tax ratio – a proper balance between property tax and non-property tax revenues provides relief to the citizen in the form of lower property taxes.

n Use the “Financial Performance Gold Standards” as the foundation for a fiscal accountability scorecard, to be published and communicated to all residents.