Eagan Mayor Delivers 'State of the City Address'

March 17 this year meant more than just celebrating St. Patrick's Day to Eagan Mayor Mike Maguire, it was the date set for his State of the City Address.

Maguire spoke for about an hour to a crowded room full of Eagan residents, business owners and managers and city employees.

He began by bringing up national and international issues that are facing many today, including strife in Wisconsin's Capitol, earthquakes and tsunamis, rising oil prices, and of course, "unemployment, deficits, health care costs and where to get the next small business loan."

Financial Goals and Challenges

Maguire said the goal of the city is not to be reliant on the state or federal budget, but to instead have "fiscal independence." The city does so by focusing on a balanced budget, never borrowing for operations (such as for repairs needed in the city), pay debts back in a timely manner and maintaining city equipment and infrastructure.

"This approach may be why Eagan is one of only 16 Minnesota cities recognized with a Triple-A credit rating from Moody's," Maguire said.

A lot of good has come from the city's approach. According to Maguire, [Eagan is] "among the lowest per capita spending of Minnesota cities with more than 50,000 residents."

In addition, its fire department, which is made up of volunteer firefighters, was able to keep its operational costs extremely low compared to other cities in Minnesota, and has saved "taxpayers more than $5 million a year compared to one of our largest neighbors," Maguire said.

However, Eagan does face its fair share of financial challenges.

"For 2012 and beyond we're looking at a shrinking tax base and know we're going to have to take a hard look at our level of services...and our personnel costs," Maguire said. "That's difficult to do when you realize that that government is labor intensive (75 percent of your general fund budget is personnel)."

Other challenges?

• No pay increases for city staff for 2011 (this is the second consecutive year)
• Pressure for the need to possibly cut more staff in the future
• Six senior employees will be eligible for retirement in the next three years (with 170 years of experience combined).
• The fire department loses about 15 volunteer firefighters a year

Cedar Grove

Even though the city has been pushing forward with the Cedar Grove redevelopment, and was able to come to an agreement and settle legal issues with Competitive Engines, the city must still resolve, as Maguire said, "legal uncertainty so the area can develop [as well as] getting the financial industry to loan developers money."

Demographic Goals

Magurie stated, "A key goal is to maintain a healthy demographic balance in Eagan so that this city remains a place where young people want to live and work, and where empty-nesters choose to remain and all of them have the services these changing lifestyles demand."

However, it has been determined that the 65 and over population in Dakota County by 2020 will rise by 71 percent, and according to demographers, by 2025, older adults will outnumber school-aged children.

Maguire asked what it will mean for schools and parks and recreation programs in the future?

Property Maintenance

Maguire discussed the importance of not falling behind on making repairs, and that it's important to not only the appearance and the quality of the city, but for property values.

A solution for the city is keep up on maintaining and reinvesting in the its roads and public buildings - however, homeowners and business property owners need to do the same so it doesn't take a toll on the rest of the community.

"Your city council will explore ways [to help], for instance, we can work with townhome associations and homeowners on low or no interest loans to revitalize distressed properties," Maguire said.

Maguire also discussed at length technology changes and how it involves the city, social media, environmental goals and civic engagement and volunteerism.

To view the State of the City Address, visit: http://eagan.granicus.com/EditFile.php?clip_id=857