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HomeMy WebLinkAbout04.09.12 Work Session Packet City of Farmington Mission Statement 430 Third Street Through teamwork and cooperation, Farmington,MN 55024 the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP April 9, 2012 6:30 p.m. 1. CALL TO ORDER 2. APPROVE AGENDA 3. FISCAL DISPARITIES DISCUSSION 4. PARKS AND RECREATION COMMISSION a. Empire Ballfield Complex Proposal b. Liquor Store Profits c. 2013 Improvement Project Parks, Trails and Facilities d. Fairhill Development 43-Acre Community Park Initial Development Timeline 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session.All discussions shall be considered fact-finding,hypothetical and unofficial critical thinking exercises,which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a formal expression of the City's position on any given matter. 4 m ur44, City of Farmington 0 430 Third Street Farmington,Minnesota 5 b� 651.280.6800•Fax 651.280.6899 •" "�`� www.ci.farmington.mn.us DATE: April 9, 2012 TO: Mayor and City Council Members /� FROM: David J. McKnight, City Administrator /" SUBJECT: Fiscal Disparities Presentation Attached for your review is the PowerPoint presentation on fiscal disparities that Shelly Eldridge of Ehlers and Associates will be making on Monday night. Shelly has a wealth of knowledge in this area and has agreed to come and discuss this issue with us. As you recall, one of the items you asked for more information on during the 2012 budget process was fiscal disparities. I wanted to get the presentation in your hands before Monday so you would be able to listen to Shelly's presentation and ask as many questions as you had on this topic at the work session. The slides will become much more understandable as you listen to the presentation. I am very confident in Shelly's understanding of this issue and trust she will help us all understand fiscal disparities. If you have any questions on this information please let me know. Thank you for your time on this important matter. 'yn • as `, City of Farmington Council Workshop Fiscal Disparities Overview April 9, 2012 0` Presented By: Shelly Eldridge,Financial Advisor EHLERS Presentation Overview • Brief History of the Fiscal Disparities Program • Calculation of Contribution and Distribution • Adjustments to City's Tax rate • Mechanics of Collection and Settlement of Fiscal Disparities • Impact on the City's tax rate if eliminated 2 Brief Description Fiscal Disparities is a tax base sharing program that redistributes,through a formula, a portion of the Commercial and Industrial (C/I)tax base throughout the 7 county metropolitan area. 3 History to R • Historical Conditions • In the 1960's Twin Cities communities were experiencing growth that was pushing the capacity of their infrastructures. • Metropolitan Communities were becoming more economic and socially interdependent. • An uneven concentration of C/I property was developing in certain communities where natural(waterways,lakes,stable base soils, etc.)and infrastructure amenities(roads, utility capacity,etc.)existed. £ 6 4 History ■� Historical Conditions • The tiered property class rate system deepened the problem by providing those communities with a greater tax base from which to fund service. • An imbalance between communities'cost of services existed because those that had higher tax bases could finance more infrastructure. • The Metropolitan Council was established and given regional planning authority. 5 History ;R Fiscal Disparities Law • In 1971 the Metropolitan Revenue Distribution Law(M.S.473F)was passed. • By 1975 all legal challenges had been exhausted. The law was implemented for taxes Payable in 1976 a History, •II 4111 Fiscal Disparities Law • Every community in the 7 county region shares a portion of the commercial/industrial tax base growth from the applicable base year. • This value is contributed to the area-wide °Pool°. • The shared value is then redistributed on the basis of an average fiscal capacity formula (market value to population)back to the each taxing jurisdiction in the region. 7 •0 r History Purposes • Improve Equity in the Distribution of Resources • Give the less affluent communities resources to attract business. • Reduce the incentive for competition for business development between cities in the region. • Regional sharing of tax base of new regional projects. e History IN-13 tai Purposes • Promotes Better Regional Planning • Provides additional tax base to older areas of the region. • Give a community an incentive to plan for low tax yield public areas such as parks&open spaces. • Reduces urban sprawl by utilizing existing regional infrastructure. • Promotes orderly regional development 9 Calculation of Fiscal Disparities General • Accomplished through a series of"Tables" • Provides the format and formulas for the calculation. • Calculations based on prior year's values. • Anoka County is Administrative Auditor • Individual County auditors submit contribution and distribution table to Administrative Auditor. • Contribution calculated on Table V and Supplemental V. • Distribution calculated on Tables VI,VII and VIII • Values reported on Tables I,II,Ill,IV and IX. • Tax Rates calculated on Table X. 1a Contribution to Pool Distribution From Poo( Co yAuditor starts with Commissioner of Revenue the commvdaNnMusffial /• certifies population and fiscal value from the prior yeas capacity for each city to the Administrative AudBnc Subtracts abatement and tax coast adjustments. Fiscal Administrative Auditor determines Fiscal Disparity Caicurales 40%of the groat Distribution Value for each city from the 1971 base ter card et, Pool and certifies the values to the County Auditor. Cerdfles resulting contrtullon The County Auditor allocates value to Administrative Auditor } the distribution value to who combines the values for the / overlapping taxing districts seven county metro area to corns such as school districts and up with the total pool value. watamheds. Some.Ramsay County Property Records and Revenue Calculation of Fiscal Disparities tip-■ Contribution-Contribution is Value to the area-wide pool • Each County Auditor calculates 40%contribution and certifies to Anoka County. 1971 Adjusted C/I 138,503 P2011 Total C/I 2,765,411 Increase 2,626,908 40%of Increase 1,050,763 P2012 Contribution 1,050,763 Source:Dakota County Auditor's office 12 Calculation of Fiscal Disparities t Distribution—Distribution from the pool is in dollars • 2 Step Process • Distribution value for municipality determined • Distribution value times prior year tax rate determines dollars to municipality from the pool. • More complicated than Contribution calculation : 13 Calculation of Fiscal Disparities Distribution-Value • Fiscal Capacity determined by Department of Revenue • Fiscal Capacity is indicated market value divided by the municipality's population as determined by the Met Council. 2010 indicated 1,456,951,390 Market Value 2010 Population 21,086 2012 Fiscal 69,096 Capacity 14 Calculation of Fiscal Disparities • Distribution,-Value • Average Fiscal Capacity is determined by the Administrative Auditor from Department of Revenue data • Fiscal Capacity is total 7 County indicated market value divided by the total metro population as determined by the Met Council. • The Average Fiscal Capacity for P2012 was $94,737.37 • Cities with a Fiscal Capacity over the average are generally net contributors to the pool, while those under are net gainers from the pool. 18 Calculation of Fiscal Disparities Distribution-Value • A percentage of the pool for each City is calculated by the Administrative Auditor. • This percentage is taken times the total 7 county contribution to determine the City's Distribution Value 2011 Distribution 0.0092805704 Percentage 2011 Total 389,815,887 Contribution Value 2012 Distribution Value 3,617 714 16 Calculation of Fiscal Disparities •••• Distribution—Dollars(Levy) • The Distribution Dollars to be received from the pool for each taxing authority is calculated by the product of the Distribution Value and the authority's prior year's tax rate. 2012 Distribution 3,617,714 Valtie P2011 City Tax 55.733% Rate 2012 Distribution Dollars S 2,016,261.00 17 Calculation of Fiscal Disparities •�•i Distribution—Dollars(Levy) • The Distribution Dollars to be received from the pool will change depending on: • The size of the pool • The percentage of the pool to be received • The City's prior year's tax rate. • The following is a historical chart summarizing the changes in the Fiscal Disparities Contribution Values and Distribution Dollars. 18 Calculation of Fiscal Disparities f Dakota County Fiscal Disparities Tables 2001—2012 cmcama® D» City Ma 8mMa017 vales Value Dishlbation 2 Bate F80018080 2012 1,050,783 3,817,714 $2018,281 2011 1,084,353 2121,232 $1,537,978 55.733% 2010 1,031,801 2951,138 $1,304,003 48.274% 2008 878,772 2794,880 $1,224,885 41.188% 2008 885,007 2219,708 $828,718 43821% 2007 531,093 2,179,051 $031,980 41.883% 2008 483,138 1,815,807 $784,784 42770% 2005 442,437 1,800,500 4875,488 43.707% 2000 440,680 1,485,772 5898,738 41.174% 2003 352,590 1,300,710 $835,943 48.894% 2002 305,155 1,171,225 $571,739 48.892% 2001 WA WA N/A 50920% Sons 2001-2011 0almYCaaxyWS6la42012Caimbb0 by efts 19 Calculation of Fiscal Disparities Area-Wide Tax Rate • Each County Auditor submits the Distribution Levy to Anoka County. • Anoka County compiles the levies and calculates a tax rate. 2012 Total S 553,325,222 Dlsbibution lodes. P2012 Total 386816887 CadlmlEion Value 2012 Area-Wide Tax Rate 141.1045% •Total al all b i q a0a®a In7Coa4r Metro Area. x amore:Anoka County Auditor >1.# 20 Calculation of City Tax Rate City Tax Rate • The City's total value is reduced by the contribution value • The City's total levy is reduced by the Distribution dollars. P2012 Tax Rate Calculation Total Value 14,764,729 Less 11F (137,147) Less Contribution (1,080,763) Value Local Value 13,576,819 Ced08ed Ley $ 10,502,243 Less Distribution 3 $016,281 Dollede Local Left' 3 8,565,982 EZENEEIZt • Solace:Dakota County 21 Settlement of Fiscal Disparities f `® • A portion of every CA property's taxes go to the pool. • The amount each parcel contributes is by the fiscal disparities percentage(sharing factor) which is calculated by the County Auditor. • The percentage Is the same for all C/i properties in the City. • The percentage is the City's total C/I divided by the City's contribution value. • .3916327 is the P2012 percentage applied to each C/I property in the City of Farmington. • The CA value times the Area-wide tax rate is the tax dollars that go to the pool. 22 Commercial Tax Statement • Following is a sample calculation of taxes for a$750,000 property Market Value 750,000 FD% 0.3916327 Total Tax Capacity 14,250 Tax Tax Rate Capacity (SD 192) Taxes Contribution 6,681 141.945% $ 7,922 Local 8,669 152.473% $ 13,218 State 14,250 51.100% $ 7,282 Referendum 750,000 0.0014556% $ 11 Total $ 28,433 • The City receives the Distribution dollars as part of the settlements from the County 23 Impact on City if Eliminated • There are ongoing discussions regarding the elimination of the Fiscal Disparities program. • Following is a calculation of the City's tax rate if there was no fiscal disparities adjustments. Total Value 14,764,728 Less 1W (137,147) Local Value 14,627,582 Corned Lew $ 10,582,243 Local Lew $ 10,582,243 2012 city Tax Rate 72.344% 2012 Actual Rate 83.083% Difference 9.252% 24 Impact on City if Eliminated • To understand the total impact on the taxpayer,the County tax rate impact needs to be considered as well. • The School Aid formula would take the differences into account,so the impact to the School would be less significant. ILA Questions^ • ®® Contact Information: Shelly Eldridge Ehlers and Associates,Inc. seld ridge(o?ehlers-inc.com 651-697-8504 �p�cEA /yc� City of Farmington v 2 430 Third Street „ 4 Farmington, Minnesota 651.280.6800•Fax 651.280.6899 � GA4sr' jA PROW'\8*G www.ci.farmington.mn.us PROPOSAL FROM CITY OF FARMINGTON TO DEVELOP A PARTNERSHIP WITH EMPIRE TOWNSHIP TO PROGRAM, MAINTAIN AND SCHEDULE ITS NEW BALLFIELD COMPLEX STATEMENT OF INTENT It is the intention of the City of Farmington (the City)to propose a partnership with Empire Township on the programming, operation, maintenance and scheduling of the new ballfield complex located in Empire Township adjacent to Minnesota State Highway 3. HISTORY The City of Farmington Parks and Recreation Department(the Department)was established in the mid 1970's to manage a new ice arena and outdoor pool. Since then the Department has grown to include park maintenance, recreation, senior center and facility maintenance. QUALIFICATIONS Park Maintenance: The Department currently has 4 full-time staff in the Park Maintenance Division. A total of 436 acres of parkland and 483 acres of open space and natural areas are maintained annually. Within the park system,there are 21 named parks. Amenities maintained in these parks include: 12 ballfields, 18 playgrounds and 13 shelters. Currently there is one staff member who is a Certified Playground Safety Inspector and two staff members who have their Non-Commercial Pesticide Applicator License. Staff members have a combined 64 years of experience in park maintenance. Recreation Programs: The Department currently has 1.5 full-time staff members who develop and facilitate recreation programs and events for the City of Farmington. Programs the Department provides to City of Farmington residents and residents living beyond the City of Farmington boundary include: youth sport clinics, youth sport camps, adult sports leagues, special events, programs for older adults, arts and crafts and educational classes. More than 16,380 participants access the Department's adult and youth programs on an annual basis. The Department plans and facilitates adult men's and co-rec softball leagues. Annually approximately 750 total participants are involved in the Department's 6 different adult softball leagues. Participants come from beyond the City of Farmington boundary to play in the different softball leagues. PROGRAMMING PROPOSAL Adult Sport Leagues: The City is proposing to provide staffing levels necessary to program adult softball leagues at the ballfield complex in Empire Township. Services provided would include: • Publicize and market summer and fall men's and co-rec adult softball leagues to softball teams that have played in the City's leagues in the past • Recruit new teams into the leagues • Register all teams with United States Specialty Sports Association(USSSA) • Conduct league organizational meetings • Collect all league fees • Schedule leagues including the cancellation and rescheduling of games due to inclement weather • Compile league standings • Provide umpires for league games • Conduct year end league tournaments • Provide a monthly report on all adult league activities • Present an annual report following conclusion of the seasons to the Town Board and Park and Rec Commission Youth Clinics and Camps: The City is proposing to provide staffing levels necessary to program youth sport clinics and camps at the ballfield complex in Empire Township. Services provided would include: • Publicize and market spring, summer and fall youth clinics and camps • Coordinate the scheduling of clinics and camps including cancellation and rescheduling of clinics and camps due to inclement weather • Hire or contract staff to lead clinics and camps • Handle all registrations including providing online registration and walk-in registrations through the City's existing online registration program • Collect all registration fees • Provide a monthly report on all youth clinics and camps conducted Events: The City is proposing to provide staffing levels necessary to program events such as district, regional and state softball tournaments. Services provided would include: • Submittal of tournament applications to host district,regional or state tournaments • Coordination of volunteers to assist with hosting the tournament • Coordination of concession operations during tournament • Provide a report after each tournament summarizing the activities that occurred OPERATION AND MAINTENANCE PROPOSAL Mowing: The City is proposing to mow the ballfield outfields and areas around the perimeter of the fields as many times per week that is needed and will be based on keeping the grass at a consistent height between 2-3 inches. The City will provide the equipment, fuel and maintenance of the equipment. • Fertilizing: The City is proposing to fertilize the turf areas of the fields at least three times per year including once in early spring, once in late spring/early summer and once in the fall. The City will provide all equipment, fuel and fertilizer to accomplish this maintenance item. Garbage: The City is proposing its staff will pick up any litter/garbage on and/or around the ballfield complex on a daily basis and more frequently if it is warranted. The City is proposing Empire Township provide the garbage containers and the garbage service for the ballfield complex. Pesticide Application: The City is proposing to spray for broadleaf weeds at least twice a year including once in the spring and once in the fall. If more spraying for broadleaf weeds is warranted, additional spraying will occur. The City will provide its own equipment, fuel and broad leaf pesticide for the application process. Aeration: The City is proposing to aerate the fields at least per year including once in the spring and once in the fall and additional times if it is warranted and time allows. The City will provide its own equipment and fuel to complete this maintenance item. Infield and Warning Track Grooming: The City is proposing to drag the ag-lime infields and warning tracks on a daily basis and add ag-lime when needed. The City will provide the equipment and fuel to complete this maintenance item. The City will order and stockpile an additional supply of ag- lime by the ballfield complex, so it is readily available when needed. Ballfield Repairs: The City is proposing to provide the staffing necessary to repair any damage to the ag-lime infield areas, outfield turf areas and any other supporting structures such as the perimeter fence. Portable Toilet Services: The City is proposing to extend its current portable toilet contract to Empire Township for the securing of portable toilet services. The City is further proposing to manage the contract for the portable toilet services including scheduling and placement of portable toilets and payment of invoices, which 50% of the cost will be reimbursed by Empire Township to the City after each monthly invoice (see Budgeting below). Irrigation: The City is proposing to provide staffing necessary for the start up and shut down of the ballfields irrigation system. Additionally the City will monitor and maintain the irrigation system during the time that leagues, events and programs are held at the ballfield complex. It is proposed that Empire Township will pay all water bills. Painting/Striping: The City is proposing to provide the staffing necessary to paint foul lines on the outfield grass at the ballfield complex. The City will not stripe foul lines on the ag-lime infield. The City will provide its own equipment, fuel and paint to complete this maintenance item. Ballfield Lights: The City is proposing to address all maintenance issues with the ballfield lights by working directly with the company that supplied the lights. Maintenance issues include any repairs needed or the replacement of lamps. The City is requesting that Empire Township provide information about the company the ballfield lights were purchased from in order to allow the City to resolve all maintenance issues associated with the ballfield lights. Other Maintenance Items: The City is proposing any other maintenance items not identified above will be addressed on a case by case basis and will be resolved in an amicable manner with Empire Township staff members. SCHEDULING PROPOSAL Field Rental: The City is proposing to provide staffing levels necessary to schedule the rental of the ballfield complex by organizations other than Empire Township or the City of Farmington. The City would utilize its online facility reservation software system that other organizations can access to review availability of fields to rent and then reserve and pay online or in person at the Farmington City Hall. The facility reservation system will be used to print/send a permit that provides for the tracking of field use and documents payment for the use of the fields. Weather Cancellation: The City is proposing to use the Department's information and cancellation phone line and the City's website to make organizations and participants aware when the fields are unplayable and games and events have to be cancelled. The City will work with the organizations who secured a rental to reschedule the game or event or provide a refund if unable to reschedule a suitable time for the organization. BUDGETING PROPOSAL Expense Sharing: The City is proposing expenses related to all programming, operation, maintenance and scheduling of the ballfield complex be split equally with Empire Township. Any expenses incurred by either party will be collected and then shared at the end of season in order to determine the total cost to program, operate, maintain and schedule the ballfield complex. Revenue Sharing: The City is proposing revenues related to all programs, events and rentals of the ballfield complex be split equally with Empire Township. Any revenues collected by either party will be accounted for and then disclosed at the end of season in order to determine the total revenues received from programs, events and rentals that occurred at the ballfield complex. Difference in Expenses and Revenues: The intent of the partnership is that revenues from programs, events and rentals will cover the expenses related to the same. The City is proposing if revenues exceed expenses then the revenues will be split equally between the City and Empire Township. At the same time, if expenses exceed revenues then the City is proposing the expenses be split equally between the City and Empire Township. AGREEMENT OR MEMORANDUM OF UNDERSTANDING PROPOSAL The City is proposing if Empire Township is agreeable with the proposal submitted and wishes to form a partnership with the City on the programming, operation,maintenance and scheduling of the ballfield complex located in Empire Township, then a formal written agreement or memorandum of understanding will be created and both entities will approve the document in order for the partnership to become official. 2013 Proposed Improvements to Pine Knoll Park Improvement Cost New Playground Equipment for 2-5 year olds $15,000 New Playground Equipment for 5-12 year olds $50,000 New Basketball Court Surface,Poles,Backboards and Goals $25,000 New Hexagon Shelter $30,000 Total Cost $120,000 2013 Park Improvement Fund Balance for Pine Knoll Park Improvements Park Improvement Fund balance end of February 2012 $278,177.00 Lake Julia Park Improvements $125,000.00 Rambling River Park Improvements $35,000.00 (tennis court resurfacing,upgrade electrical and trail for Veteran's Memorial) Balance remaining after 2012 improvements $118,177.00 Estimated additional 2012 revenues $29,500.00 Estimated fund balance beginning of 2013 $147,677.00 2013 estimated costs of Pine Knoll Park improvements $120,000.00 Remaining balance Park Improvement Fund $27,677.00