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HomeMy WebLinkAbout05.08.17 Work Session Packet CityofFamvngton Mission Statement 430 Third Street Though teamwork and Farmington,MN 55024 cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP May 8, 2017 6:30 PM Farmington City Hall 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) City Communications Discussion (b) Review Cable Fund (c) 2018/2019 Budget Discussion 4. CITY ADMINISTRATOR UPDATE (a) Review of Oustanding Items 5. ADJOURN rlls ►, , City of Farmington 430 Third Street Farmington, Minnesota 49► 651.280.6800 -Fax 651.280.6899 ' .A now, www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: City Communications Discussion DATE: May 8, 2017 INTRODUCTION Staff plans to review the city's communications strategy and methods with council to ensure city communications remain relevant and effective. DISCUSSION Staff will provide an overview of the city's most common communication methods to give council a better understanding of how they are developed, produced and published. Staff will also review the attached drafts of our updated Communications Guide and City Branding and Writing Style Guide. The Communications Guide outlines the city's communication strategy and goals; and provides a brief synopsis of our communication methods. The City Branding and Writing Style Guide is intended to provide all city employees with the information they need to ensure that city communications are written in a clear, accessible style that is consistent with the city's branding efforts. BUDGET IMPACT NA ACTION REQUESTED For city council information and discussion. ATTACHMENTS: Type Description D Backup Material Communications Guide 2017 D Backup Material City Branding and Writing Style Guide • Communications Guide Introduction to Communications The city of Farmington is officials in order to effectively Resources,Liquor Operations, responsible for delivering communicate information to Municipal Services,Parks and public services to its residents. the public. Recreation,Public Works,and The dissemination of public The Communication Guide Police. information is an important is a flexible document that The departments educate part of delivering these changes to meet the needs of people through city services. audiences and in response to communications about the The Communications Guide changes in staffing,budgets, services they offer Farmington. provides a variety of options and city priorities. Much of the city's success is to be used when planning and City Departments dependent upon the ability executing communication City employees work within of each department to efforts.It identifies various departments,which include communicate internally tools and channels of and externally. Administration,Community communication used by city Development,Engineering, of Farmington staff and city Finance,Fire,Human Communication Goals • Maintain continuous open and Target Audiences honest communications. It is important to identify the • Civic organizations and • Improve and maintain audiences you want to reach. volunteer groups communication and Target audiences include: • Prospective new residents, collaboration with the public new businesses,and business and stake holders. • City residents owners • City businesses and groups • Improve,maintain,and promote • School District 192 internal communication (Farmington Business and teamwork. Association and Dakota County • Stakeholders(our partners, Regional Chamber of Commerce) policy makers,coworkers, • Establish and maintain a positive • Media-local and regional contractors,civic relationship with the media. organizations,vendors,and •• Promote and educate residents, Neighboring cities,townships, volunteers;any person or businesses,and stake holders and their residents group with a vested about city events and services. interest in the city's success) Secondary Audiences • Strategy Secondary audiences are those It is important to have a strategy to reach each audience. organizations or individuals Communication methods are used in coordination with each that are not necessafily other to reach and engage audiences. The city's most common targeted for our messages. methods are listed below and they are highlighted in this guide. They include other cities offering competitive programs Electronic/Digital Media Television/Video and services,and visitors Social Media Surveys 71: who develop and share their Print Partnershipsimpressions of Farmington. Advertising/Marketing Internal , Electronic/Digital Media Electronic and digital • City council and planning Social Media/Website Policy communications are vital to commission meeting The city's social media policy reach people quickly.A variety live and archived videos includes guidelines for posting of methods are used to reach • City YouTube Channel information;it is available to audiences that use these • Laserfiche-archived city the public on the city's website types of media including web, records/documents and Facebook page.The city's mobile,video,email,and • Mobile App website and social media social media. tools are intended for city • Recreation program Website registration related business and inclusive www.ci.farmington.mn.us • Share photos to governmental,non-profit The city's website provides • Sharethis(share via social media) organizations and agencies of which the city is affiliated. the public with up-to-date • Utility bill payment information.It is a priority Employees representing the to keep the website as user- Social Media city via social media and friendly as possible. Social media is any web-based the website must conduct Website amenities include: tool that allows users to share themselves accordingly and information with each other abide by all applicable city • City calendars online.Social media builds policies.Employees must not • City facility reservations communities that encourage express personal opinion, • E-Notifications participation and engagement. assume,speculate,or speak on • City council and board and Farmington social media behalf of the city. commission agenda venues include: Facebook, packets and minutes SeeClickFix,and Twitter. Print Publications Print communications are used to reach Community Calendar current and potential residents and businesses, The Community Calendar is a reference for city community organizations,state and local meeting dates,holidays,garbage and recycling agencies,and stakeholders.They are vital to collection,parks and recreation,and more. successful education and outreach and are The calendar features photos taken within the often used in coordination with other strategies Farmington city limits that are submitted by to maximize efforts.Print communications photographers who grant the city permission are designed to work for multiple audiences. to use their photos.The photos are shared with However,some are specifically geared towards photo credit and provide local interest in the one audience. publication.The calendar is mailed to residents The city produces a number of printed annually in December. publications that are also available on the city's The River website and through E-Notifications.Publications The Rambling River Center's bimonthly newsletter are listed below. The River,is a publication for the center's news, City News&Recreation Guide and highlights trips,and programs that are The City News&Recreation Guide is a quarterly offered.It is mailed and distributed to center publication for the Farmington community; members and visitors. it's published and mailed to the school district, The Resident Guide residents and businesses.The publication The publication provides information about announces what is happening in city government,features parks and recreation local government,recreation and enrichment opportunities,and provides answers to opportunities,schools,and a list of retail,dining, and service businesses.The guide is updated frequently asked questions.It is also available as a quarterly,printed internally for staff and is pick-up piece at City Hall,Rambling River Center, available on the city's website. and the Dakota County Farmington Library. 2 Advertising and Marketing In addition to annual, city's message effectively.A that the city is speaking with quarterly,and bimonthly good relationship with the "one voice."As a general rule publications,the city creates media will be maintained the spokesperson is the city additional marketing collateral. by providing timely and administrator or the mayor. Examples include: accurate information while The mayor or city administrator • Advertisements for city acknowledging schedules may designate someone else services,promotions,and events and deadlines.Media sources as spokesperson;for example, are published in regional include the following: the police or fire chiefs may be magazines and newspapers. Newspapers the spokesperson regarding • Brochures,postcards,and Farmington Independent,SUN public safety concerns.Staff posters are used to promote Thisweek,St.Paul Pioneer should be aware of this city services,amenities,and Press,and Minneapolis Star protocol in case they receive events like Curbside Cleanup, Tribune inquires from media or the Parks and Recreation programs, public. parks and trails,water Television restrictions,and Farmington Government cable channels, Media Releases/Public Notices Liquors sale promotions and local network channels:CBS 4, Releases and notices are Wine Club events. KSTP 5,KMSP 9,and KARE 11. emailed to local news agencies Media Relations Identify a Spokesperson and E-Notification subscribers. When communicating with the It is important to identify a All releases and notices should media,it is important for city spokesperson for the city be sent to communications officials to take time preparing whenever possible to control staff for distribution. a statement to convey the the flow of information so Television and Video • Additional Tools Cable Access Government Channel 180 • Email may be used to communicate with Farmington,Apple Valley,and Rosemount target audiences residents who subscribe to Charter cable • Informational signage for city vehicles and television have access to local channel 180. facilities,wayfinding,and billboards Subscribers can watch Farmington City Council • Public open houses and meetings meetings and Planning Commission meetings as • Utility billing inserts live or taped broadcasts;important notices and Partnerships events are also posted on channel 180. The city partners with other public entities. YouTube Channel For example,the School District 192,Dakota The city of Farmington YouTube Channel is County Regional Chamber of Commerce,and accessible through the city's website and through Farmington Athletic Association partner with www.youtube.com.The channel features public the city to provide to community activities. service announcements,city meetings,open houses,and special programming. Many staff members are involved in groups and organizations related to their areas of expertise that provide networking and City Surveys learning opportunities. The city of Farmington periodically conducts Internal a quality of life survey to measure resident Intranet: For city staff to find information about opinions.These surveys help the city officials and employee benefits,health&wellness,policies, staff determine future courses of action. manuals,and events.The site is accessible through the city's website Surveys are also used to measure specified Meetings: Department head,department and service areas including city communications interdepartmental meetings,and trainings and recycling. Weekly Update: City administrator prepares for Farmington City Council 3 City Branding ■ & Writing Style Guide Basic Branding i4iktyi A logo is not the Brands Work from the o� same thing as a Inside Out brand image;it Establishing a culture of How to Use Logo Files >,,.,. ,,•' is part of a brand engaged and invested ✓Do not copy and paste or image. employees who understand save the city of Farmington Branding includes a trademark the city's brand and work to logo from the website or from or distinctive name identifying advance our brand message. a Microsoft Word document, a product,service industry,or this lessens the quality of the manufacturer.It's a distinctive City Logos g ima e. category;a particular kind. The city of Farmington, /You may insert or place the file Fire Department,Police into a document,you may size What's our trademark? Department,and Farmington and position the logo there. /The city's logo is a Liquors have official logos. ,/Do not distort the proportions trademark. ✓Outside agencies may only use ofthelogoinanyway(lockthe ✓A distinctive category,our city logos with the city's aspect ratio). product-service,our City Hall permission. If you are unsure about which lobby sign reads"Committed to ,1 Approved city logo files are on Service." the citywide drive in the logos logo to use,please contact the file,with the font and logo colors. communications staff. Consistency Sets the Tone Color Matters • Green(secondary color,yellow for the website,publication's, Color increases brand and blue): The color of growth, and presentations.They are recognition by up to 80 nature,peace,and money.A available to staff for design percent.Research reveals calming color that's pleasing to projects on the citywide drive people make a subconscious the senses and is second only to in the communications folder. judgmentblue as a favorite color. about a person, Color information sources: environment,products, • Blue(primary color): Blue is seen Color Matters by Jill Morton, as trustworthy,dependable and The Psychology of Color by Precision and publications within 90 committed.As the collective Intermedia,and www.Dinfogranhics.org. _, seconds of initial viewing and between 62%and 90%of that color of spirit,it invokes rest and can cause the body to • I'OI1tS assessment is based on color. produce chemicals that are - Color Psychology&Marketing calming. By using color psychology Complimentary Color AaBb in all aspects of marketing • Orange(compliments blue): you can make a positive It's the color tied most with fun In typography,a serif is a or negative message,and times,happiness,warmth, small line attached to the encourage engagement. and ambition. end of a stroke in a letter Colors for City Branding City Color Palettes or symbol.Serif fonts are Logo Colors Color palettes have been generally used for titles in • Brown: This color is most made with the branding city publications and on associated with reliability, colors and include warmer/ stability,and friendship. cooler,darker/lighter hues Fonts and writing on pages 2,3&4. ■ Writing Style Guide the city's website. y Sans serif fonts are simplified Style Guidelines How to apply to our letter forms that are The city of Farmington communications unencumbered by serifs, promotes the use of the • Include only the key information which can impede the Associated Press Stylebook your audience needs readability.They are typically and Plain Language to help • Use headings and white space to used within the body of copy foster consistency in city help readers scan for what for city newsletters,and communications. they need other publications.They also Plain Language • Avoid acronyms and jargon offer greater readability on Plain Language is a federal Benefits of using plain websites. initiative that requires federal language include: The preferred fonts for agencies use clear government • Increased audience satisfaction consistent branding are communication. and understanding of message available to staff for city This initiative focuses on • Increased access to services, publications and design writing that is clear,concise, benefits,and increased projects on the citywide drive and easy to understand compliance with regulations in the communications folder. that meets the needs of the • Decreased costs to the These fonts may be added to intended audience.Basically, organization your computer's font folder. your audience should be able Plain Language resources: Contact the communications to find and understand what • www.plainlanguage.gov staff if you need assistance they need. • centerforplainlanguage.orq with fonts. • www.hennepin.us/writingguide Names and Titles City • John Jones,board chair(title separated by a comma) Follow the Associated Press Stylebook in all • The director(formal title used alone) instances: • Capitalize full,official names of departments,but do • Kansas City(City is part of the formal,official name) not capitalize unofficial names. • The city of Farmington /He was elected to the board in 2009(not an • The city requires residents to apply for a building official name) permit. /Go to the Office of Budget and Finance County and State (an official name) Dakota County The official name of the ,/ Go to the budget office(not official name) organization;capitalize in all instances. City Council Minnesota-do not abbreviate,unless part of a Capitalize the official name of the city's governing mailing address.Capitalize"S"if using State of body when part of a proper name; Farmington Minnesota. City Council. Retain capitalization if in reference Titles to a specific council. Lower case in all other uses. Don't capitalize a word unless it's a proper noun • "He was elected to the Farmington City Council" or full name of a department or office. (official name).City Council meetings are held the first and third Monday of each month at City Hall Capitalize formal job titles when used (referring to a specific council). immediately before a name,but lowercase formal Boards and Commissions titles when used alone or in constructions that set When writing for the public, capitalize the full them off from a name by commas. Use lowercase at all times for terms that are job descriptions name of the group.Avoid using the full name rather than formal titles. unless necessary. Use lowercase when broadly referring to a board or commission. • County Board Chair John Jones(formal title before a name,no comma is needed) 2 Departments Acronyms If necessary to reference a Avoid using acronyms.They department capitalize. can make people feel like capitalize for nine and below • Parks and Recreation outsiders.When they are used, (e.g.,300 Fifth Avenue,300 21st Department always use full names instead Street);to make a clearer of acronym on the first distinction between the address City Buildings reference.Put acron m and street name,you may add a Capitalize building name when y dash(e.g.,300-21st Street) referring to a specific city in parentheses after the • When used in a sentence with building. full name only if the item is a numbered address,spell out mentioned later. and capitalize Street,Avenue, • City Hall,430 Third Street • The Rambling River Center and Boulevard. City Code (RRC)will host an event for • For a mailing address,use Do not capitalize city code, seniors in October.The RRC the USPS abbreviations and the ordinance,or resolution unless hosts several events additional four zip code referring to a specific chapter, throughout the year. numbers(e.g.,300 S Sixth St., section,or number. Addresses Minneapolis,MN 55487-0240). • City Code 1-1-1 (title 1,chapter 1, • Use the abbreviations Directions section 1) Ave.,Blvd.,and St.only with a Lowercase.Do not capitalize Ordinances and Resolutions numbered address: 1600 descriptive words that indicate Refer to a specific ordinance or Pennsylvania Ave.Spell them directive only,east Farmington. resolution with Ordinance xxx out when part of a formal • Abbreviate compass points or Resolution xxx."No."is not streetnamewithouta number: used to indicate directional Pennsylvania Avenue. ends of a street:222 E.42nd necessary. • Street names:use figures for Street,not if the number is • Ordinance 017-724 10 and above;spell out and omitted:East 42nd Street. Dates and Times Dates and Days of the Week • Use noon and midnight rather than 12 a.m.or p.m. • Always spell out months completely;do not use (lower case unless beginning a sentence). abbreviations or numbers. • With time ranges,use an en dash to indicate /November 22,2017,rather than 11/22/17. continuing dates and times(e.g., 1-4 p.m.). • Do not include a comma when using only the month Year and year. • When using two years to show an inclusive period, .1In May 2017 commissioners will consider the issue. use an en dash to separate the numbers;do not • Include commas after the day and the year when repeat the century(e.g.,1979-81 not 1979-1981). writing a full date in a sentence. • Years are the lone exception to the general rule that ✓On May 12,2017,commissioners will consider numerals are not used to start a sentence. the issue. • Use an s without an apostrophe to indicate spans of decades or centuries(e.g.,the 1980s). • Do not use st,nd,rd,or th after dates to indicate ordinals. ✓Student presentations are scheduled for May 26. • Numbers • Capitalize days of the week.Do not abbreviate, • Spell out numbers less than 10;use figures except when needed in a tabular format:Sun,Mon, for numbers 10 or more. Rule exceptions: ages, Tue,Wed,Thu,Sat(three letters,without periods to money,or when starting a sentence,if possible facilitate tabular composition). rephrase sentence. Time of Day ✓Overall,six out of 27 residents agreed. • Always include a.m.and p.m.in lower case with no /The girl is 5 years old. space between the periods(e.g.,The meeting will be • Percentages—Use figures and the word percent held from 9 a.m.to 1 p.m.;when using from,use to, (e.g.,"We had a seven percent response rate"). never use a dash). Use%in for tables only. • Do not include":00"for on-the-hour times,with • Phone numbers—Always include the area code even hours,except for consistency within a series. and use dashes(e.g.,612-463-3000). 3 Punctuation ■ Commonly Used Words Asterisk affect(v)vs.effect(n)—Affect means to influence. • Using this symbol is not recommended.If it's used Effect means a result. it's positioned after a word or a phrase and before its ✓The levy affects property taxes.The change in accompanying footnote. the levy had an effect on the residents. Bullets annual—Do not capitalize application names when • Capitalize the first letter of all bullets. used in text.. • Do not include punctuation at the end a bullet, applications—An event cannot be"annual"until it has unless it is a complete sentence. been held in at least two successive years. • You may,but are not required to,include a period at assure vs.ensure vs.insure—Assure means to make the end of a complete sentence. sure or give confidence.Ensure means to guarantee. • Every bullet within a list should be structured the Insure is a reference to insurance. same way. ✓"Rest assured,we will ensure that you are Colon insured." • It is frequently used at the end of a sentence to citizen vs.resident — A citizen is a person who has introduce a list or series. acquired the full civil rights of a nation,either by birth, or naturalization.To avoid confusion,use resident not • Capitalize the first word after a colon only if it's a citizen when referring to inhabitants of Farmington. proper noun or begins a complete sentence. County Highway# — Capitalize when referring to a Commas specific highway.Don not use County Road,CSAH,or • In a series of three or more words or phrases, TH. separate all parts of the series with commas. downtown Farmington—Do not capitalize downtown. • Use a serial or Oxford comma before the final email—Acceptable in all references for electronic mail conjunction in a list(usually and,or,nor)in a series of (email).Use a hyphen with other e-terms;e-book, three or more terms. e-commerce. • When etc.is used at the end of a series,set it off with i.e.vs.e.g.—The abbreviation i.e.means that is or in a comma. other words;"i.e."is followed by a comma."e.g."is also ✓The students sold homemade bread, candy,cake, followed by a comma and means"for example." etc.,to pay for their trip. Intranet—Capitalize Ellipsis Points... Metropolitan Council —Use on first reference.Met • Use to show the omission of words(generally three- Council OK on second reference. letter words),phrases,or lines from quoted material. more than vs.over—Use more than when referring to Semicolon numbers.Over refers to a"spatial"reference. • Use a semicolon between two independent clauses ✓More than 500 people attended the event. when they are not connected by a conjunction.Both /The cow jumped over the moon. clauses can also stand alone as a sentence. smartphone—One word. • Separate items in a series with semicolons ifthe items that vs.which —"Which"needs a comma."That"does are long or complex or have internal punctuation. not. Periods webpage—Lowercase,one word. • Use only one space after a period. website —Lowercase,one word. • When parentheses or brackets enclose an worksession vs.work session —Work session should independent sentence,place the period inside.When be written as two words,and capitalized when used the enclosed matter is part of another sentence, place the period outside the parentheses. as part of the formal meeting title. Lowercase when speaking of the work session in general terms. /The teacher repeated the lecture.(I heard it last week.) /The Farmington City Council Work Session will /Watch for common errors when proofreading be held on August 1, 2017. (such as it's for its)and missing quotation marks /The City Council will hold a work session later and parentheses. this year. • In all cases,place the period within the quotation your,you're —Your means belonging to you. marks. You're is a contraction of you are. ■ ✓The teacher said,"School will close early today." 4 a411 I City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 "'t.,,n,,,.' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Review Cable Fund DATE: May 8, 2017 INTRODUCTION City staff thought it would be a good idea to review the Cable Fund with the city council. This fund is often referred to but we have not taken the time to review the details of this fund. Please see the attached memo and spreadsheet on this topic. The information will be reviewed in detail at the work session to hopefully answer the questions you have. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Listed to the presentation made by city staff and ask any questions you may have. This information is being shared as a continuing effort to educate you on the many facets of the city financial structure. ATTACHMENTS: Type Description D Cover Memo Cable Fund Memo D Backup Material Cable Fund Spreadsheet ec Mk. City of Farmington ca w wZ 430 Third Street pa`o9i Farmington,Minnesota 651.280.6800•Fax 651.280.6899 A PRO%' www ci.farmington.mn.us TO: Mayor, Councilmembers,and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Cable Fund DATE: May 8,2017 INTRODUCTION The purpose of this memorandum is to provide information regarding the city's cable communications and the sources of revenue from the cable franchises. DISCUSSION Background: The Cities of Farmington, Apple Valley and Rosemount each have nearly identical cable franchise ordinances. The three cities worked jointly to negotiate the franchises prior to 1999 and then formalized their partnership in a joint powers agreement when the franchises were approved in 1999. The Apple Valley, Farmington, Rosemount Cable Commission (AFRCC) works jointly on all cable related issues. The commission is funded with revenue from the cable franchises. There are two revenue sources from the cable franchises—franchise fees and Public, Education and Government Access (PEG) fees. Franchise fees were created essentially in lieu of rent for use of city right-of-way. There are no restrictions on how cities use the franchise fee revenues but some (including Farmington) choose to dedicate some or all of the revenues to support cable operations. PEG fees were created to specifically fund PEG cable activity, and if not specified as extending to operations in the ordinance,would only apply to cable TV capital purchases. As more subscribers have taken satellite based services, PEG revenues have been slowly declining even in our growth community, with 2016 revenues approximately $3,500 less than those of 2010. Additionally, this funding source has very strict legal limitations on its use. Status of Cable Franchise Agreements: The city has a current cable franchise agreement with Frontier Communications. The term of this agreement is 5 years and began on October 1, 2016. Frontier will pay a quarterly franchise fee of 5% of gross revenues from the television related portion of the system. They will also remit a payment calculated as a per subscriber per month amount not to exceed $0.75 solely to fund PEG access expenditures. The city has an expired franchise agreement with Charter Communications. This franchise was originally to expire 12/31/2014 but the city (along with the two other cable commission cities) agreed to extend the franchise through 12/31/2015 with assurance from Charter that a renewal would be complete within that year. Unfortunately, Charter continues to delay the process to renew this franchise. However, even though the franchise is expired, Charter must continue to operate under the expired agreement and pay the appropriate franchise and PEG fees. For franchise fees, they pay a quarterly franchise fee of 5% of gross revenues; and they remit a payment calculated as a per subscriber per month amount of$0.50 solely to fund PEG access expenditures. Description of Current Services,Budget, and Future Funding Needs: The current AFRCC joint powers operating budget is approximately $237,000 for 2017 and is estimated to be$240,560 for 2018.Farmington is responsible for one quarter of that cost. In addition to these costs, the city is responsible for any legal costs related to its franchises including costs associated with negotiating our franchise renewals. It is important to note that these costs may increase significantly in 2017/2018 because the cable commission cities may have to move to the formal process for negotiating franchises due to Charter's continued reluctance to move forward with those negotiations. Services in the basic operations include: live regular Council and Planning Commission meeting coverage and recordings throughout the year for each city, management of government program playbacks for two channels,management of both the government and the public access bulletin boards, production of the State of the City address for each city, candidate forums during election years, customer complaint resolution, franchise administration, and system equipment design, maintenance, and repair. How Franchise and PEG Fees Are Used With its first cable franchise,the city established a cable fund as a way to pay for cable operations and track PEG fees and expenditures. Though there are no restrictions on how franchise funds may be used, the city thought it prudent to set aside some of those fees to ensure that future cable operations and equipment would be supported solely through franchise and PEG fees. From 1999-2004, the majority of the franchise fees ($75,000) went into the general fund and the remaining amount remained in the cable fund. As service costs increased, so have franchise revenues, increasing by more than 260 percent between 1999 and 2016.As franchise fee revenue and cable costs grew, the amount being contributed to the general fund remained static at $75,000 per year which allowed cable operations to continue to be paid with franchise and PEG fee revenue. In 2014, after reviewing the cable fund balance and estimating future cable costs, it was determined that the contribution to the general fund should be increased to $100,000 per year. PEG fees, unless specifically allowed in the franchise, may only be used for capital equipment related purchases. Under the previous franchise with Charter, the city had the ability to use PEG fee revenue to fund cable operations, if necessary. However, cable companies are no longer interested in allowing cities the latitude to use PEG fee revenue in that manner.Additionally, as PEG fees have fallen and are likely to continue on that trend, the cities will continue to need to subsidize the operations with franchise fees. Therefore, funding for other cable-related needs such as additional programming or capital replacement would also need to come from franchise fees. The PEG fee for the expired franchise with Charter was capped starting at $1.25 in 1999 and could have been increased annually by the CPI or three percent, whichever was less. However, previous city councils chose not to increase PEG fees over the course of the last franchise. It should be noted that PEG fees continue to be an issue in the negotiations with Charter. Current PEG fees net approximately $22,500 per year. If that amount continues to decline, the city would need to need to subsidize those fees in order to fund capital expenditures. In 2014, the city spent $180,323 to upgrade aging equipment and allow for broadcasting in high definition(HD). The City's projected future capital needs are for periodically replacing equipment and the estimated costs are $82,500 within a 5 to 7 year period. The City's share of shared joint powers capital equipment is estimated to be approximately $125,000 over ten years. Therefore, Farmington can expect to see approximately$207,000 in capital costs over the course of a ten year period. The city has funded other projects using franchise fees retained in the cable fund. Most notably, these funds have been used to build the city's fiber network. The attached spreadsheet is a breakdown of the franchise and PEG fees collected since the beginning of the first franchise. Additionally, information is provided regarding the cable expenditures paid using PEG fees. ACTION REQUESTED This information is for information. A 1 B I C I D I E I F ] G I H I 1 6 2000-2010 2011 2012 2013 2014 8015 2016 7 8 Franchise Fees 9 1st qtr 392,668.09 52,462.96 53,054.72 57,507.25 60,471.62 60,092.61 62,156.86 10 2nd qtr 394,743.46 51,747.69 53,983.38 59,199.78 61,306.14 60,026.72 62,133.34 11 3rd qtr 415,330.47 52,350.11 54,403.52 58,225.42 61,353.48 59,398.57 60,795.37 12 4th qtr 439,635.80 53,815.99 57,030.32 59,639.41 62,205.92 63,198.54 68,133.69 13 Total 1,642,377.82 210,376.75 218,471.94 234,571.86 245,337.16 242,716.44 253,219.26 14 15 Franchise Fees 1,642,377.82 210,376.75 218,471.94 234,571.86 245,337.16 242,716.44 253,219.26 16 Interest on Investments 4,423.10 6,244.95 17 Deposited In General Fund 625,346.13 75,000.00 75,000.00 75,000.00 100,000.00 100,000.00 100,000.00 18 Transferred to General Fund 280,000.00 - - - - - - 19 Non-PEG Eligible Expenditures 593,901.39 42,283.59 45,026.07 47,131.36 50,462.06 57,508.90 81,576.74 20 Exp(Income)Adj Needed to Bal to JDE 116,548.47 4,024.84 26.00 9,859.83 - (2,465.86) (1,935.13) 21 Fees Remaining 26,581.83 115,850.15 214,070.02 316,850.69 411,725.79 503,822.29 583,644.89 22 23 PEG Fees 24 1st qtr 47,270.17 6,462.55 6,296.21 6,424.00 6,112.00 5,733.00 5,658.00 25 2nd qtr 48,661.59 6,469.06 6,283.03 6,319.50 6,042.40 5,694.00 5,613.00 26 3rd qtr 55,927.02 6,352.67 6,277.89 6,180.50 5,937.50 5,651.00 5,553.00 27 4th qtr 52,859.83 6,281.90 6,305.84 6,175.50 5,779.00 5,690.50 5,648.00 28 Total 204,718.61 25,566.18 25,162.97 25,099.50 23,870.90 22,768.50 22,472.00 29 30 PEG Fees 204,718.61 25,566.18 25,162.97 25,099.50 23,870.90 22,768.50 22,472.00 31 Eligible Expenditures 35,195.44 532.50 570.83 1,322.18 180,322.93 - 910.60 32 Restricted PEG Fees Remaining 169,523.17 194,556.85 219,148.99 242,926.31 86,474.28 109,242.78 130,804.18 33 34 Recap: 35 Combined Franchise,PEG and Int Rev 1,847,096.43 2,083,039.36 2,326,674.27 2,586,345.63 2,855,553.69 3,125,461.73 3,407,397.94 36 37 Less: 38 Deposits Into General Fund 625,346.13 700,346.13 775,346.13 850,346.13 950,346.13 1,050,346.13 1,150,346.13 39 Transfers Into General Fund 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 280,000.00 40 Non-PEG Eligible Expenditures 593,901.39 636,184.98 681,211.05 728,342.41 778,804.47 836,313.37 917,890.11 41 Expenditure Adj Needed to Balance 116,548.47 120,573.31 120,599.31 130,259.14 130,259.14 127,793.28 125,858.15 42 Expenditures-PEG Fees 35,195.44 35,727.94 36,298.77 37,620.95 217,943.88 217,943.88 218,854.48 43 1,650,991.43 1,772,832.36 1,893,455.26 2,026,568.63 2,357,353.62 2,512,396.66 2,692,948.87 44 45 196,105.00 310,207.00 433,219.01 559,777.00 498,200.07 613,065.07 714,449.07 46 Funds being held for future DCC project-See David M for details 34,185.00 34,185.00 34,185.00 34,185.00 47 593,962.00 532,385.07 647,250.07 748,634.07 Cell:C6 Comment:Robin Hanson: Eliminated 1999,1DE started 2000.Also,added adjusting entry to 2000-2010 4th quarter to agreet to 2000-2016 franchise fee revenue,transfers and expenditures per JDE. Cell:C12 Comment:Robin Hanson: Eliminated 1999,JDE started 2000.Also,added adjusting entry to 2000-2010 4th quarter to agreet to 2000-2016 franchise fee revenue,transfers and expenditures per IDE. Cell:C17 Comment:Robin Hanson:Eliminated 1999,JDE started 2000.Also,added adjusting entry to 2000-20104th quarter to agreet to 2000-2016 franchise fee revenue,transfers and expenditures per JOE. Cell:C19 Comment:Robin Hanson: Eliminated 1999,JDE started 2000.Also,added adjusting entry to 2000-2010 4th quarter to agreet to 2000-2016 franchise fee revenue,transfers and expenditures per JOE. Cell:D19 Comment:Robin Hanson: Added adjusting entry to 2011 expenditures so that total 2011-2016 expenditures agreed to JOE.Assumed PEG Fee expenditures were correct. Cell:C20 Comment:Robin Hanson: Eliminated 1999,JOE started 2000.Also,added adjusting entry to 2000-20104th quarter to agreet to 2000-2016 franchise fee revenue,transfers and expenditures per JDE. Cell:C21 Comment Robin Hanson: Non cable fund fund balance was negative$56K ooARit , City of Farmington 430 Third Street SZ Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 +'.A PRO1 1' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson, Finance Director SUBJECT: 2018/2019 Budget Discussion DATE: May 8, 2017 INTRODUCTION City staff would like to talk to the city council about the 2018/2019 budget and budget process. We wanted to offer the city council an opportunity to discuss the budget prior to the start of the work. City staff will go over a number of issues that have already been decided by previous city council actions as well as a number of other important points for 2018. DISCUSSION The 2018/2019 budget work is about to kick off for city staff. The May work session will be used as a discussion with the city council and city staff on this project. If schedules no not allow all five city councilmembers to be in attendance we will hold a very preliminary discussion on the budget schedule and work with the city council to schedule another work session in May to have the full discussion. BUDGET IMPACT NA ACTION REQUESTED Participate in the 2018/2019 budget discussions with city staff. �o�EAR�►, �► City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ►r•A POO www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Review of Oustanding Items DATE: May 8, 2017 • INTRODUCTION Over time items accumulate on my list of issues to run past the city council or I receive some partial direction. I plan to review this list with you at the work session so I can perform any work that may need to be done. DISCUSSION I will review the list of items I have and provide you with updates on issues as well. BUDGET IMPACT NA ACTION REQUESTED Provide direction on the issues I share with you and allow time for updates on issues provided by the city administrator.