HomeMy WebLinkAbout08.14.17 Work Session Packet City of Farrington Mission Statement
430 Third Street Through 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
August 14, 2017
6:00 PM
Farmington City Hall
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSSION ITEMS
(a) Non-Contract Fire Charges Discussion
(b) Early Redemption of the Remaining Series 2010A, 2010B and 2011A Bonds
(c) Draft 2018 Budgets and Tax Levy-August Update
4. CITY ADMINISTRATOR UPDATE
(a) City of West St. Paul Request
(b) City Council Roundtable
5. ADJOURN
ao�FA0 City of Farmington
(^ O 430 Third Street
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Farmington, Minnesota
't. 651.280.6800 -Fax 651.280.6899
.,,MOO- www.Cifarmington.mn.us
TO: Mayor, Councilmembers and City Administrator
FROM: David McKnight/City Administrator, Jim Larsen/Fire Chief and Robin
Hanson/Finance Director
SUBJECT: Non-Contract Fire Charges Discussion
DATE: August 14, 2017
INTRODUCTION
Please see attached over memo.
ATTACHMENTS:
Type Description
D Cover Memo Non-contract Fire Charges
D Backup Material Fire Contract Charges Proposed Ordinance
Revisions
,014/J, City of Farmington
' 430 Third Street
'
$7." Farmington,Minnesota
‘..�1 651.280.6800•Fax 651.280.6899
"•A P www.ci.farmington.mn.us
TO: Mayor, Council and City Administrator
FROM: David McKnight, City Administrator
Jim Larsen, Fire Chief
Robin Hanson, Finance Director
SUBJECT: Non-Contract Fire Charges
DATE: August 14, 2017
INTRODUCTION:
A portion of the general tax levy collected from Farmington property owners is for fire protection. It is intended
to provide fire protection for fires beyond one's control. It is not intended to cover irresponsible fires. Historically,
the city has billed for excessive false alarm calls. In 2016 the city began invoicing for fire department responses
to:
• Unauthorized burning,
• fires where hazardous materials were spilled,
• vehicle fires and vehicle extrication (non-residents),
• and invalid assist calls over 3 times/year.
DISCUSSION:
To recover a portion of the costs incurred, the city began invoicing for the types of fire responses listed above
based on the city's fee schedule. A second invoice marked past due along with an insert explaining payment
must be received by July 31,2017 to avoid additional penalties, interest,service charges and increased collection
efforts. As of July 31, 2017, the city has $30,570 in outstanding non-contract fire charges as summarized below.
The question for council is do you wish to proceed with additional collection efforts? For Farmington property
owners this would mean certification to their 2018 property taxes. Notification and timelines would be similar to
those provided to our delinquent utility billing customers. For non-Farmington property owners, the city would
need to hire a collection agency.
Farmington Residents (option to certify) $8,640
Farmington Resident(moved ) 815
Non-Residents 3,180
Formal re-payment agreement in place 9,187
Contractors-disputed charges-non-residents 8,748
Total Non-Contract Fire Charges $30,570
Possible local benefits of invoicing and collecting for these types of fire responses include reducing the risks to
our firefighters by educating the public about the types of costs they will pay for these fires which may serve to
reduce the numbers of these types of incidents. Also, a portion of the costs of responding to these types of fires
is borne by the person responsible for the fire or potentially the landlord if it is a rental property, rather than the
general tax levy which is paid for by all property owners.
Possible cons include the amount of staff time involved in invoicing and tracking these invoices. Determining
who to invoice is complicated. Following are some of the types of questions that arise.
Is the person responsible a Farmington resident? If yes, are they the property owner? If they are not the property
owner then you, also need to notify the property owner, as the charges may ultimately become their responsibility
if they are certified to their property.
Or is the person responsible a resident of one of the townships the city provides fire protection to? If yes, how
does the fire contract for the applicable township handle these type of charges. For example, for one of the
townships, the city passes the information on to the township. They in turn bill their resident. Any proceeds
collected are used to reduce the amount that township pays the city for fire protection. The city does not benefit.
If the amount is unpaid the city wouldn't be able to collect directly anyway. The township would have to certify
the property for collection and any monies collected would be received by them. Again, no benefit to the city.
If the fire response involves an auto insurance claim, you need to not only notify the responsible person, but the
insurance company to increase your chances of being paid.
If council directs staff to continue to invoice for these types of fire responses and pursue collection of unpaid
invoices, staff would recommend revising the city's ordinances as indicated on the attached redlined version.
BUDGET IMPACT:
The 2017 budget assumed a zero budget for this revenue type. The 2018 budget provides for a $10,000
revenue budget.
ACTION REQUESTED:
• Review and discuss amongst your selves, ask questions of staff about, and provide direction to staff on
if you want:
o City staff to continue to invoice for and identify the types of collection efforts you would like
pursued for unpaid non-contract fire invoices.
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING TITLE 5,CHAPTERS 1 AND 2 OF THE
FARMINGTON CITY CODE CONCERNING
FIRE DEPARTMENT FEES AND THE STATE FIRE CODE
THE CITY COUNCIL OF THE CITY OF FARMINGTON ORDAINS:
SECTION 1. Section 5-1-9, Fees,of the Farmington City Code is amended by revising the paragraph as
follows, additions shown by underline or deletions shown by strik teugh language:
The City Council may establish fees for the provision of fire service. including emergency medical
response, as authorized by state law. All fees shall be in the amount set by the council from time to
time by resolution of the city council. Payment of fees provided for in this section shall be due in
full to the City within thirty (30) days after mailing of a statement to the recipient of services.
Payments not made within thirty(30)days are delinquent, and a penalty as set forth in the fee
schedule will be added. The City will mail a notice of delinquency to the recipient of services,
including notice of the City's intent to certify the delinquent amount to the county auditor. If the
fees and penalty remain unpaid after the deadline specified in the mailing of the notice of
delinquency, all delinquent fees and penalties shall be certified by the City Clerk to the County
Auditor for collection of the delinquent amount with property taxes.
SECTION 2. Section 5-2-1, Adoption of Minnesota State Fire Code is amended by revising the
paragraph as follows, additions shown by underline or deletions shown by strik gh language:
The Minnesota state fire code(2000)adopted pursuant to state law and regulation, and all
amendments thereto, is hereby adopted by the city of Farmington as the governing regulations of
the city's fire prevention code. The Minnesota state fire code, as adopted and as amended, is hereby
incorporated in this chapter as if fully set out herein.
SECTION 3. Effective Date. This ordinance shall be effective upon its passage according to law.
ADOPTED this day of , 2017, by the City Council of the City
of Farmington.
CITY OF FARMINGTON
By:
Todd Larson,Mayor
ATTEST:
By:
David McKnight,City Administrator
SEAL
188154v2
Approved as to form the day of ,2017.
By:
City Attorney
Published in the Farmington Independent the day of ,2017.
188154v2
io�cFA ►i�, City of Farmington
Z 430 Third Street
Farmington, Minnesota
651.280.6800 -Fax 651.280.6899
' .A 1,100v. www.ci.farmington.mn.us
TO: Mayor, Councilmembers and City Administrator
FROM: Robin Hanson, Finance Director
SUBJECT: Early Redemption of the Remaining Series 2010A, 2010B and 2011A Bonds
DATE: August 14, 2017
INTRODUCTION
The city has three bonds series eligible for optional redemption February 1, 2018. This is the earliest date the
city can redeem these bonds.
DISCUSSION
The city has been planning to redeem these bonds early. The following table provides a summary of what
staff is proposing:
Refinance or
Redeem and Estimated
Source of Callable Interest Final Gross
Series Financed Funding Amount Rates Maturity Savings
Refinance—
2010A Police Station Internal Loan $1,435,000 3.25-4.00% 2/1/22 $77,000
Storm Water
Trunk
2010B Maintenance Redeem— 445 000 3.125- 2/1/22 36 500
Facility Utility Funds 3.25% '
Redeem—
Main Street 2016A,
2011A Project Road and Bridge 335,000 2.50% 2/1/19 8,400
Fund Related
Bonds
$2,215,000 $121,900
2010A
The 2010A bonds refinanced the bonds originally issued to finance the police station. After the February 1,
2018 scheduled principal payment, there will be$1,435,000 of bonds remaining with interest rates ranging
from 3.25 -4.00% and a final maturity of February 1, 2022. Staff recommends utilizing the proceeds of an
interfund loan from the Storm Water Trunk Fund to call for the early redemption of the remaining bonds on
February 1, 2018. Retiring these bonds early is estimated to save the city approximately$77,000 in interest.
The interfund loan would be repaid with future debt levy previously ear-marked for the 2010A bonds (i.e.
bonds being redeemed). The interest rate on the loan would be 1.755% which was the interest rate as of late
July 2016 for a U.S. Agency maturing in mid-January 2022. The interfund loan could be prepaid in whole or
in part at any time without penalty. To complete the refinancing, the Storm Water Trunk Fund will need to
advance approximately$1,515,000. This amount is greater than the$1,435,000 of bonds being redeemed
due to the timing of when the debt levy is received and when the bonds would be redeemed. The proposed
interfund loan resolution is attached.
2010B
The 2010B bonds refinanced the bonds originally issued to finance the maintenance facility. After the
February 1, 2018 scheduled principal payment, there will be$445,000 of bonds remaining with interest rates
ranging from 3.125—3.25% and a final maturity of February 1, 2022. Staff is recommending calling for the
early redemption of the remaining bonds on February 1, 2018 utilizing monies in the sewer($111,250), solid
waste($166,875), storm water($55,625)and water($111,250) funds in the same proportion currently utilized
to redeem these bonds on an annual basis. Retiring these bonds four years early is estimated to save the city
approximately$36,500.
2011A
The 2011A bonds refinanced the bonds originally issued to finance the Main street project. After the
February 1, 2018 scheduled principal payment, there will be$335,000 of bonds remaining at an interest rate
of 2.50% and a final maturity of February 1, 2019. Staff is recommending calling for the early redemption of
the remaining bonds on February 1, 2018 utilizing monies in 2016A bond fund. During 2018, the debt levy
previously ear-marked for the 2011A bonds would be deposited into the 2016A bond series. Both the
2011A and the 2016A are Road and Bridge Fund related bond series. Retiring these bonds one year early is
estimated to save the city approximately$8,400.
BUDGET IMPACT
The combined benefit to the city is estimated to be$121,900 in interest savings. In addition, the city would
eliminate the annual trustee and arbitrage calculation fees for these three bond series.
ACTION REQUESTED
If Council is in agreement, then the request to approve the early redemption of the Series 2010A, 2010B and
2011A bonds on February 1, 2018 will be included on the August 21, 2017 council agenda.
ATTACHMENTS:
Type Description
D Resolution Resolution- 2010A Interfund Loan 2017
RESOLUTION NO. Rxx-xx
AUTHORIZING AN INTERFUND LOAN
FROM THE STORM WATER TRUNK FUND TO THE 2010A BOND FUND
Pursuant to due call and notice thereof a regular meeting of the City Council of the City of
Farmington, Minnesota was held in the Council Chambers of said City on the 21St day of August
2017 at 7:00 p.m.
Members present:
Members absent:
Member introduced and Member seconded the following resolution:
WHEREAS,the City of Farmington issued the 2010A bonds to finance the police station; and
WHEREAS,the Council has determined it is in the best financial interest of the City to redeem
the 2010A bonds on their optional redemption date with an internal loan; and
WHEREAS,the Storm Water Trunk Fund has sufficient funds within its fund balance to be
loaned for a period of time without detriment of any function or project for which the fund was
established; and
WHEREAS, the City has the taxing authority to repay the loan, and;
WHEREAS, the loan will be repaid semi-annually over a four-year period (2018-2021) from an
annual tax levy. Minimum payments will consist of semi-annual principal and interest payments
beginning June 30, 2018. The principal may be repaid in whole or in part at any time without
penalty.
WHEREAS,the City of Farmington desires, by this resolution, to document the loan from the
Storm Water Trunk Fund to the 2010A Bond Fund, and to express the terms and conditions of
said loan.
NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Farmington,
that:
1. An interfund loan from the Storm Water Trunk Fund to the 2010A Bond Fund in an
amount not to exceed$1,515,000 be approved. The interest rate will be 1.755%which is
the current rate for a U.S. Agency, in this case a Federal Home Loan Mortgage Corp (i.e.
FHLMC) agency, maturing in January 2022.
2. Semi-annual repayment installments will be made on the loan from the city's annual tax
levy beginning June 2018. These payments will originate as part of the City's tax levy
against all taxable properties within the City of Farmington, and will be adopted as part
of the City's budget and tax levy from 2018-2021.
3. This loan may be repaid, in part or in whole, at any time without penalty. Interest will be
calculated on an actual/365 day basis.
This resolution is adopted by recorded vote of the City of Farmington City Council in open
session on the 21'day of August 2017.
Mayor Todd Larson
Attested to the day of August 2017
David McKnight, City Administrator
SEAL
io�i�A�tl/ , City of Farmington
430 Third Street
Farmington, Minnesota
. i
{`� 651.280.6800 -Fax 651.280.6899
°'-.,, * www.ci.farmington.mn.us
TO: Mayor, Councilmembers and City Administrator
FROM: Robin Hanson, Finance Director
SUBJECT: Draft 2018 Budgets and Tax Levy-August Update
DATE: August 14, 2017
INTRODUCTION
Please see attached cover memo and related attachments.
ATTACHMENTS:
Type Description
❑ Cover Memo Council Draft 2018 Budget Memo 8-14-17
o Backup Material General Fund 2018 Budget Draft
0 Backup Material General Fund Revenue Detail 2018 Budget
Draft
0 Backup Material General Fund Expenditure Detail 2018 Budget
Draft
O Backup Material Debt Service Fund 2018 Budget Draft
❑ Backup Material Special Revenue Funds 2018 Budget Draft
o Backup Material Capital Projects Funds 2018 Budget Draft
O Backup Material Enterprise Funds 2018 Budget Draft
O Backup Material Operating Transfers 2018 Draft
o Backup Material Council Draft 2018 Budget Memo 7-10-17
o Backup Material Building Fund CIP Spreasheet
sitik City of Farmington
430 Third Street
Farmington,Minnesota
651.280.6800•Fax 651.280.6899
"'"°s.
wwwci.farmington.mn.us
TO: Mayor, Council and City Administrator
FROM: Robin Hanson, Finance Director
SUBJECT: Draft 2018 Budgets and Tax Levy—August Update
DATE: August 14, 2017
INTRODUCTION:
Since your last workshop, work has continued to update and refine the 2018 draft budgets. During your August
city council workshop staff will review the updates detailed below and seek further direction from council. This
memo builds on the information that was reviewed during the July city council workshop; it generally does not
repeat that same information. A copy of the July memo is attached for your reference.
DISCUSSION:
General Fund
Pool
The revised 2018 budget assumes the pool is closed. Pool operations funding has been eliminated. In 2018 the
following change are budget neutral.
• Pool revenues have been eliminated
• The full-time human resource costs previously allocated to the pool have been reallocated to city hall to
support the increased building maintenance needs of the city (net $22,664 —the full-time position costs
($28,164), offset by the elimination of a proposed seasonal summer staff person ($5,500)).
• The remaining budget of $74,733 has been set-aside for demolition, fill-in and reclamation of the pool
and bathhouse area. Note: If possible, staff would like to retain the exterior rest rooms to be available
for people who use the park which includes a picnic shelter. If council is in agreement, at a later date,
after staff has had time to consult with the appropriate professions a recommendation would be brought
back to council regarding the feasibility of this request.
In 2019 the revenues and expenditures for the pool are budgeted at zero.
Building Permit Revenues
Building permit revenues were increased $44,165 to $300,000 to approximate the 2017 budget amount.
Franchise Fee Revenues
Franchise fee revenues were increased $20,000 to $120,000 to match the 2017 budget amount.
Human Resource Costs
The human resources costs originally provided for the addition of 1.0 full-time to be determined position. The
potential for a new staff position has been adjusted. A few council members had questions of the city
administrator after the last workshop that need further clarification at the August workshop. In addition, the part-
time pool salaries were eliminated, as previously mentioned above, and reallocated to the funding needed to
close the pool. Continued fine-tuning of other salaries and benefits resulted in a net reduction of the overall
human resources budget of$18,258.
Transfer Out
Transfers out to the Park Improvement Fund were reduced by a net of$10,000 by eliminating the $20,000 of tax
levy and reallocating $10,000 of LGA to the Park Improvement Fund.
Fiscal Disparities
This is a metro wide program that is used to balance the development of commercial and industrial growth
throughout the region. It is a complex calculation that is completed by the city of Anoka on behalf of the metro
cities. The fiscal disparities amounts will be published later this month. Staff recommends if the actual amount
is higher than the budgeted amount (currently the same as 2017), then staff recommends that amount be
transferred into the building maintenance fund to address the city's deferred building maintenance needs. If the
amount is less than the amount included in the draft 2018 budget, staff will need to review the situation and make
a recommendation to city council at that time.
Net Tax Levy
The proposed net tax levy for 2018 is $10,537,085 or a 5.40 % increase when compared to 2017.
The following summarizes the changes made from the draft 2018 General Fund budget reviewed with you in
July:
2018
2017 Proposed
Budget Budget Change
Proposed Farmington Net Tax Levy at July 10, 2017 Workshop $10,644,009
Pool closing 0
Increase Permit Revenues,
New Construction (44,165)
Increase Franchise Fee Revenue (20,000)
Human Resource Costs,
Promotion and addition of 1 FTE mid-year (50,000)
Decrease transfer out to Park Improvement Fund (20,000)
Other Combined Refinements (15,659)
Proposed Farmington Net Tax Levy $9.996.822 $10.537.085 4.98%
Enterprise Funds
Sewer Fund —The 2018 Metropolitan Council Environmental Services fees represent approximately 55% of the
annual sewer fund expenditures. While the 2018 draft budget provides for a 10.5% increase, the actual amount
the city will be charged will not be known until later this month. Staff will update the budgets when this amount
is known.
Water Fund —The 2018 budget continues to provide for the purchase of a new plow truck at an estimated cost
of $215,000. The amount was originally shown within the Water Fund as a vehicle purchase to highlight the
revised approach to funding plow trucks over the next four years.These funds would actually be transferred from
the Water Fund to the General Capital Equipment Fund where the purchase would be recorded. As a result, the
budgets have been revised to include these funds as an operating transfer. A similar change was made for the
Sewer Fund vehicle funding in 2019. There is no change to the bottom-line for either of these funds. It is only
a change in presentation that staff wanted to point out.
Capital Project Funds
Maintenance Fund — This fund accounts for funds related to maintenance projects. One of the maintenance
projects included in this fund is the city's building maintenance fund.
Wold Architects recently completed an assessment of the city's buildings which they shared with you during your
June 19, 2017 city council meeting. The study identified $9.8 million in building maintenance needs over the
next ten years. Of this amount $2 million was determined to be of the highest priority and recommended to be
completed over the next 0-2 years. The city has limited resources on hand to begin to address these needs. At
this time staff is recommending the projects listed in the following table be addressed first, all of which are Priority
1 projects. Utilizing $126,400 of available funds in the building maintenance fund and $52,600 from the liquor
store's community investment fund account staff recommends the following be completed in 2017-2018.
Generally, staff selected projects that would serve to preserve the exterior of the various building structures.
Replace Concrete Apron $25,000
Replace Existing Doors on Apparatus Bay $7,800
Repair wall damage from leaking roof(roof has been repaired) 3,000
Provide Smoke Seals $2,600
Fire Station#1 $38,400
Perform Soil Evaluations $5,000
Fire Station#2 $5,000
Replace Roof $70,000
Provide Smoke Seals $1,300
Seal Wall $10,000
Provide Fire Rated Doors $7,500
Rambling River Center $88,800
Roof Repairs $16,000
Maintenance Facility $16,000
Replace Interior Emergency Lights $5,800
First Street Garage $5,800
Replace Exterior Doors $25,000
Schmitz-Maki Arena $25,000
GRAND TOTAL $179,000
Funding Gaps
Some areas where funding gaps remain in 2018 (not a complete list) and will continue to be challenges into the
future:
• Additional staffing needs
• Building maintenance funding
• Compensated absences funding
• Emerald Ash Borer funding
• Park improvement funding
• Street and trail maintenance funding
BUDGET IMPACT:
The budget impact is summarized within the content of this memo.
ACTION REQUESTED:
• Review, discuss, ask questions about and provide direction to staff on the proposed 2018 budgets.
City of Farmington
Budget and Tax Levy
2017 Budget,2018 Proposed and 2019 Proposed
Company 2017 2018 Budget% 2019 Budget
Budget Proposed Change Proposed Change%
Non-Property Tax Revenues
Licenses and Permits 397,615 410,411 3.22% 363,646 (11.39)%
Intergovernmental Revenue 847,432 886,636 4.63% 886,636 0.00%
Charge for Service 601,950 560,000 (6.97)% 543,000 (3.04)%
Fines and Forfeitures 40,000 35,000 (12.50)% 30,000 (14.29)%
Investment Income 23,005 31,000 34.75% 31,000 0.00%
Miscellaneous 47,385 43,775 (7.62)% 43,775 0.00%
Transfers In 1,150,350 1,196,376 4.00% 1,244,256 4.00%
Total Revenues 3,107,737 3,163,198 1.78% 3,142,313 (0.66)%
Expenditures
Administration 726,999 847,486 16.57% 875,088 3.26%
Human Resource 294,176 330,831 12.46% 360,486 8.96%
Finance and Risk Mgmt 740,102 732,495 (1.03)% 769,981 5.12%
Police 4,330,234 4,451,333 2.80% 4,586,651 3.04%
Fire 1,145,404 1,188,352 3.75% 1,220,513 2.71%
Community Development 725,021 801,427 10.54% 842,124 5.08%
Engineering 685,908 705,474 2.85% 734,487 4.11%
Municipal Services 1,278,532 1,313,175 2.71% 1,337,676 1.87%
Parks and Recreation 1,324,772 1,282,696 (3.18)% 1,342,269 4.64%
Transfers Out 952,342 906,207 (4.84)% 1,064,775 17.50%
Total Expenditures 12,203,490 12,559,476 2.92% 13,134,050 4.57%
Revenues Over(Under)Expenditures (9,095,753) (9,396,278) 3.30% (9,991,737) 6.34%
Fiscal Disparities 2,136,834 2,115,466 (1.00)% 2,094,311 (1.00)%
General Fund Levy 6,958,919 7,280,812 4.63% 7,897,426 8.47%
Debt Levy
Bonds 2,738,903 3,058,373 11.66% 3,046,439 (0.39)%
2005C Loan Repay-Storm Water Tr Adv 166,000 166,000 0.00% 166,000 0.00%
2010D Loan Repay-Storm Water Tr Adv 133,000 139,000 4.51% 240,000 72.66%
Total Debt Levy 3,037,903 3,363,373 10.71% 3,452,439 2.65%
Use of Fund Balance to Lower Debt Levy 0 (150,000) 0 (100.00)%
Net Debt Levy 3,037,903 3,213,373 5.78% 3,452,439 7.44%
Farmington Net Tax Levy 9,996,822 10,494,185 4.98% 11,349,865 8.15%
Location: Documents\FARMINGTON\Budget 2018-2019\1 General Fund Budget Summary Page 2017 Base
8/4/2017 3:32:11 PM
General Fund Detailed Non-Property Tax Revenue Summary
2016 Budget,2017 Budget,
2018 Proposed and 2019 Proposed
Object 2016 2017 2018 2019
Account Budget Budget Proposed Proposed
LIQUOR LICENSES 31,000 29,600 40,700 40,700
BEER&WINE LICENSES 2,200 2,200 1,750 1,750
CLUB LICENSES 300 500 500 500
ARCADE LICENSE 655 540 0 0
MASSAGE LICENSE 100 100 50 50
GAMBLING LICENSE/PERMIT 200 200 200 200
OTHER LICENSE&PERMIT 1,900 1,200 1,500 1,500
ANIMAL LICENSES 5,000 4,000 4,000 1,400
Licenses 41,355 38,340 48,700 46,100
BUILDING PERMITS 265,298 301,075 300,000 255,835
REINSPECTION FEES 600 600 800 800
Code Enforcement Fees (1) (1)
PLUMBING&HEATING PERMITS 32,000 30,000 30,000 30,000
SEWER PERMITS 5,000 5,000 5,000 5,000
ELECTRIC PERMITS 12,000 12,000 14,000 14,000
ISTS PERMITS 350 350 250 250
COUNTY SEPTIC FEE
UTILITY PERMITS 5,500 5,500 6,130 6,130
SIGN PERMITS 500 500 570 570
BURNING PERMITS 1,000 1,000 1,710 1,710
OTHER PERMITS 4,100 3,250 3,250 3,250
Permits 326,348 359,275 361,711 317,546
Licenses and Permits 367,703 397,615 .410;411 363,646'
FEDERAL GRANT 0 0
LOCAL GOVERNMENT AID 284,884 287,432 313,640 313,640
MSA MAINTENANCE 190,000 220,000 215,000 215,000
POLICE AID 180,000 180,000 190,400 190,400
POST TRAINING 31,000 17,000 15,371 15,371
FIRE AID 110,000 127,000 134,461 134,461
STATE GRANT 2,000 0
MARKET VALUE CREDIT 0 0
COUNTY MISCELLANEOUS 5,250 16,000 17,764 17,764
OTHER MISCELLANEOUS 0 0
Intergovernmental 803,134 847,432 886,636 886,636
CUSTOMER SERVICES NONTAXABLE 0 0 350 350
ZONING&SUBDIVISION FEES 0 0 1,250 1,250
ADMINISTRATION FEES-PROJECTS 0 0 450 450
FIRE CHARGES (215,000) (212,000) (228,000) (231,000)
POLICE SERVICE CHARGES 75,000 75,000 75,000 75,000
EROSION&SEDIMENT CONTROL 12,000 12,000 12,000 12,000
G.I.S.FEES 0 0
RECREATION FEES-GENERAL 96,000 93,000 93,000 93,000
POOL ADMISSIONS 37,000 37,000 0 0
SWIM LESSON FEES 13,000 11,000 0 0
CONCESSIONS 11,000 11,000 0 0
RECREATION FEES-SENIOR CTR 18,000 19,000 18,000 18,000
MEMBERSHIP FEES-SENIOR CTR 12,000 9,000 9,000 9,000
MOBILE MEALS-SENIOR CTR
Location: Documents\FARMINGTON\Budget 2018-2019\1.1 Gen'I Fund Revenue Summary 2017 Base
Page 1 of 2
General Fund Detailed Non-Property Tax Revenue Summary
2016 Budget,2017 Budget,
2018 Proposed and 2019 Proposed
Object 2016 2017 2018 2019
Account Budget Budget Proposed Proposed
ADVERTISING 500 750 750 750
LESSONS
ADVERTISING 2,200 2,200 2,200 2,200
FRANCHISE FEE 100,000 120,000 120,000 100,000
Charges For Services 591,700 601,950 560,000 543,000
COURT FINES 65,000 40,000 35,000 30,000
Fines&Forfeitures 65,000 40,000. 35,000 30,000
INTEREST ON INVESTMENTS 18,462 23,005 31,000 31,000
GAIN/LOSS INVEST MKT VALUE
Investment Income 18,462 23,005 31,000 31,000
MISCELLANEOUS REVENUE 15,000 5,000 5,000 5,000
CASH OVER&SHORT
RENTAL INCOME-RRC 20,000 21,000 22,000 22,000
RENTAL INCOME-POOL 2,000 2,200 0 0
RENTAL INCOME 19,685 19,185 16,775 16,775
DONATIONS 0 0
DONATIONS-RRC Use of Fund Balance 0 0 150,000 0
Misc Revenue 56,685 47,385 193,775. 43,775
OPERATING TRANSFERS 1,148,371 1,150,350 1,196,376 1,244,256
Transfers In 1,148,371 1,150,350 . 1,196,376 1,244,256'
Total Revenues $3,051,055 $3,107,737 $3,313,198 $3,142,313
Location: Documents\FARMINGTON\Budget 2018-2019\1.1 Gen'I Fund Revenue Summary 2017 Base
Page 2 of 2
General Fund Expenditure Detail Summary
2016 Budget,2017 Budget 2018 Proposed
and 2019 Proposed
Company 2016 2017 2018 2019
Budget Budget Proposed Proposed
Expenditures
Administration
Legislative(1005) 86,906 90,121 111,379 96,106
Historical Preservation(1006) 3,855 0
Administration(1010) 376,379 295,408 366,550 422,856
Elections(1013) 57,548 34,370 35,821 29,548
Communications(1014) 102,105 109,072 109,341 114,995
City Hall(1015) 195,321 198,028 224,395 211,583
Administration 822,114 726,999 847,486 . 875,088
Human Resources 279,035 294,176 330,831 360,486
Human Resource(1011) 279,035 294,176 330,831 360,486
Human Resources 279,035 294,176 330831` 360 486
Finance and Risk Management
Finance(1021) 491,973 563,802 566,015 600,171
Risk Management(1022) 190,000 176,300 166,480 169,810
Finance and Risk Management 681,973 740,102 732,495 769,981
Police
Police Administration(1050) 840,955 823,992 850,566 894,030
Patrol Services(1051) 2,679,435 2,680,419 2,750,258 2,811,677
Investigations(1052) 662,472 820,923 843,859 874,294
Emergency Management(1054) 4,900 4,900 6,650 6,650
Police 4,187,762 '4,330,234 4,451,333 4,586,651
Fire
Fire(1060) 1,140,007 1,145,404 1,188,352 1,220,513
Rescue(1061) 0 0
Fire 1,140,007 `1,145,404 1,188,352. 1,220,513`
Community Development 604,498 725,021 801,427 842,124
Planning(1030) 347,774 420,914 433,575 465,676
Building Inspection(1031) 256,724 304,107 367,852 376,448
Community Development 604,498 725,021 801,427 842,124
Engineering
Engineering(1070) 531,112 543,757 568,573 594,210
Natural Resources(1076) 125,576 142,151 136,901 140,277
Engineering 656,688 685,908 705,474. 734,487'
Municipal Services
Streets(1072) 1,018,604 1,047,993 1,085,798 1,112,261
Snow Removal(1073) 226,895 230,539 227,377 225,415
Municipal Services 1,245,499 1,278,532 1,313,175 1,337,676
Parks and Recreation
Park Maintenance(1090) 608,700 631,213 653,873 769,608
Rambling River Center(1093) 149,166 171,358 177,225 191,828
Park&Rec Admin(1094) 262,158 271,040 264,004 267,522
Recreation Programs(1095) 113,407 113,822 112,861 113,311
Swimming Pool(1097) 135,232 137,339 74,733
Parks and Recreation 1,268,663 1,324,772 1,282,696 1,342,269'
Perm Levy Adj(2015&2016)and 1/3 Delq Exp(2016) 5,379 0
Transfers Out 906,607.00 952,342.00 906,207.00 1,064,775.00
Transfers Out 906,607.00 952,342.00 906,207.00 1,064,775.00
Total Expenditures 11,798,225 12,203,490 12,559,476 13,134,050
8/4/2017 3:43:07 PM Page 1 of 1
Debt Service Funds Summary
2016 Actual,2017 Budget,
2018 Proposed and 2019 Proposed
Company Actual Budget Proposed Proposed
2016 2017 2018 2019
Revenues
Property Taxes(i.e.Debt Levy) 2,752,122 3,037,903 3,363,373 3,452,439
Special Assessments 454,065 436,440 418,235 403,781
Deferred Assessments(VRC) 23,545 0
MSA Construction 200,000 0
Interest on Investments 41,061 4,160 8,500 8,500
Total Revenues 3,470,793 3,478,503 3,790,108 3,864,720
Expenditures
Principal Repayment 4,411,533 16,511,459 2,965,000 3,269,000
Interest on Debt 950,036 720,756 453,978 385,514
Debt-Fiscal Charges 144,163 46,905 28,395 90,395
Total Expenditures 5,505,732 17,279,120 3,447,373 3,744,909
Other Financing Sources
Bond Proceeds 9,620,000 0 2,460,000
Transfers In 11,799,261 12,607,167 304,552 169,552
Transfers Out (9,991,812) (10,590,850) (311,900) (2,857,900)
Total Transfers 11,427,449 2,016,317 (7,348) (228,348)
Change in Fund Balance 9,392,511 (11,784,300) 335,387 (108,537)
8/4/2017 11:43:47 AM Page 1 of 1
Special Revenue Funds Budget Summary
2016 Actual,2017 Budget,
2018 Proposed and 2019 Proposed
Company 2016 2017 2018 2019
Actual Budget Proposed Proposed
Revenues
EDA(2000) 45,014 2,374 3,100 3,100
TIF-City Center(2050) 56,049 0
TIF-Trident(2054)
Police Donations&Forfeitures(2100) 7,899 5,082 5,100 5,100
Park Improvement Fund(2300) 127,771 9,00.0 10,487 3,400
Ice Arena(2500) 330,126 333,786 343,000 342,000
Total Revenues 566,860 350,242 361,687 353,600
Expenditures
EDA(2000) 69,174 45,255 51,407 51,690
TIF-City Center(2050) 114,536 0
TIF-Trident(2054) 827 2,850 2,850
Police Donations&Forfeitures(2100) 5,763 6,500 6,500 6,500
Park Improvement Fund(2300) 76,985 150,000 74,500 274,500
Ice Arena(2500) 316,995 313,952 319,421 329,624
Total Expenditures 584,279 515,707 454,678 665,164
Transfers
Transfers In 95,013 80,000 97,850 97,850
Transfers Out (60,000) 0 (22,850) (12,850)
Total Transfers 35,013 80,000 75,000 85,000
Change in Fund Balance 17,593 (85,465) (17,991) (226,564)
8/4/2017 11:44:56 AM Page 1 of 1
Capital Projects Funds Summary
2016 Actual,2017 Budget,
2018 Proposed and 2019 Proposed
Company 2016 2017 2018 2019
Actual Budget Proposed Proposed
Revenues
Sanitary Sewer Trunk(3900) 79,981 2,981 3,700 3,700
Cable Communications Fund(4000) 183,871 174,347 176,000 176,000
Road and Bridge/Street Reconstruction Fund(4100) 156,712 9,465 9,179 8,848
Fire Capital Projects Fund(4300) 59,426 1,293 2,500 2,500
Storm Water Trunk(4400) 155,768 31,173 8,904 8,903
RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 34,942 17,012 21,900 21,900
Private Capital Projects(4600) 26,538 22,892 23,000 23,000
Permanent Imp Revolving Fund(4900) 15,988 1,002 1,300 1,300
Gen'I Cap Equip Fund(5600) 16,132 441 9,500 1,500
Maintenance Fund(5700) 476,614 560,782 355,600 15,600
Total Revenues 1,205,973 821,388 611,583 263,251
Expenditures
Sanitary Sewer Trunk 64,751 0
Cable Communications Fund 82,487 81,000 140,000 115,000
Road and Bridge/Street Reconstruction Fund(4100) 196 0 0
Fire Capital Projects Fund(4300) 256,749 0 870,000
Storm Water Trunk Fund 163 0
RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 178,530 14,250 11,600 11,600
Private Capital Projects 22,097 20,000 20,000 20,000
Permanent Imp Revolving Fund 366 0
Gen'I Cap Equip Fund(5600) 139,368 157,546 207,600 251,665
Maintenance Fund 1,972,255 719,179 820,182 3,401,626
Total Expenditures 2,716,961 991,975 1,199,382 4,669,891
Transfers
Transfers In 1,334,636 1,630,170 1,743,877 4,659,653
Transfers Out (1,501,000) (2,642,615) (520,000)
Total Transfers (166,364) (1,012,445) 1,223,877 4,659,653
Change in Fund Balance (1,677,351) (1,183,032) 636,078 253,013
8/4/2017 11:45:40 AM Page 1 of 1
Enterprise Funds Budget Summary
2016 Actual,2017 Budget,
2018 Proposed and 2019 Proposed
Company 2016 2017 2018 2019
Actual Budget Proposed Proposed
Revenues
Liquor Stores,Net of Cost of Goods Sold(6100:6115) 1,216,009 1,172,471 1,177,848 1,181,760
Sewer Operations(6200:6205) 2,069,783 2,060,012 2,070,357 2,332,605
Solid Waste(6300:6302) 2,102,466 1,986,203 2,163,362 2,185,062
Storm Water(6400:6405) 654,666 650,003 744,787 748,459
Water(6500:6508) 1,704,640 1,813,099 1,527,475 1,086,440
Streetlights(6600:6602) 226,464 220,838 225,300 225,300
Total Revenues 7,974,028 7,902,626 7,909,129 7,759,626
Expenditures
Liquor Stores 911,075 962,953 965,829 965,415
Sewer Operations 2,051,152 2,231,750 2,332,889 2,441,820
Solid Waste 1,775,162 1,905,011 2,387,984 2,083,949
Storm Water 534,982 690,995 852,487 673,500
Water 1,359,211 1,506,024 1,560,587 1,217,914
Streetlights 288,925 266,200 209,200 216,500
Total Expenditures 6,920,507 7,562,933 8,308,976 7,599,098
Transfers
Transfers In 0 63,849 66,846 69,520
Transfers Out (1,428,106) (1,384,861) (1,683,884) (2,334,438)
Total Transfers (1,428,106) (1,321,012) (1,617,038) (2,264,918)
Change in Fund Balance (374,585) (981,319) (2,016,885) (2,104,390)
8/4/2017 11:46:22 AM Page 1 of 1
2018 OPERATING TRANSFERS
TRANSFERS IN(5205)
General
Capital General General
General Equipment Capital Capital
2010B Storm Capital Fund Equip Fund Equip Fund
General TIF- 2013A Utility Water Arena Cap Equip Fund (Police (Police (Fire Township Solid Emp Exp Prop Ins
Fund EDA Trident Park Imp Bonds Bonds Fire Cap Trunk Proj Fd (Vehicles)_Vehicles) Equip) Equip) Sealcoat Trail Main Bldg Main Road Main. Waste Fund ISF IT Fund
Fund 1000 2000 2054 2300 3091 3098 4300 _ 4400 4503 5600 5600.5 5600.5 5600.6 5700 5700 5731 5741 6301 7000 7100 7400 Totals
592,567 1000 Tax Levy - - 85,000 51,000 70,545 350,000 10,000 - 3,000 13,022 10,000 592,567
313,640 1000LGA 10,000 150,000 90,000 10,000 27,432 26,208 313,640
2,850 2000 EDA 2,850 2,850
20,000 2500 Arena 20,000 20,000
6,900 3094-2016A 6,900 6,900
166,000 3130-2005C 166,000 166,000
C - 3136-20168 _
�y 3137-20160
139,000 3300-2010D 139,000
F _ 139,000
D 180,000 4100 180,000 _ 180,000
0 - 4400 _
340,000 5711 340,000 340,000
LL
W 131,808 6100 Admin(GF) 56,808 75,000
131,808
LL
0110,394 6202 Admin(GF) 77,256 31,138 2,000 110,394
_
Z 219,238 6202 HR 201,996 17,242 219,238
Ce 127,713 6302 Admin(GF) 77,256 46,707 3,750 127,713
1.- 58,860 6302 HR 58,860 58,860
93,185 6402 Admin(GF) 77,256 15,569 360 93,185
293,323 6402 HR 275,400 17,923 293,323
108,394 6502 Admin(GF) 77,256 31,138 108,394
325,969 6502 HR 294,288 31,681 325,969
215,000 6502 Genl Cap Equip 215,000 215,000
3,444,841 1,196,376 - 2,850 85,000 180,000 124,552 150,000 651,900 20,000 305,000 85,000 51,000 70,545 350,000 20,000 27,432 3,000 66,846 13,022 16,110 26,208 3,444,841
G1Operating Transfers by year 1Operating Transfers.xlsx 8/4/2017 3:44 PM
7--(stAct Mty� City of Farmington
'- 430 Third Street
`<..1000:1
Farmington, Minnesota
651.280.6800•Fax 651.280.6899
www.cifarmington.mn.us
TO: Mayor, Council and City Administrator
FROM: Robin Hanson, Finance Director
SUBJECT: Draft 2018 Budgets and Tax Levy
DATE: July 10, 2017
INTRODUCTION:
Adopting comprehensive, sound, balanced budgets supports the city council's priority of becoming a city of fiscal
excellence. The timing set forth in Minnesota statutes requires the preliminary property tax levy be certified to
the county on or before September 30. Once the preliminary tax levy is adopted, you may adopt the same or
lower final property tax levy in December, but you may not increase it.
This workshop provides you with your first opportunity to review the draft 2018 budgets. You will have another
opportunity to review this information in a workshop setting before being asked to adopt the preliminary tax levy
at your Tues., Sept. 5, 2017 council meeting. The full 2018 budget development calendar is as follows:
Date Task Note
May 16 Finance reviews budget development timeline, approach and process with Management
management group Team
Before May 18 David enters estimated human resource costs budget amounts Online
May 18 Finance opens the 2018-2019 operating budgets, which include three years Online
(i.e. 2014-2016) of actual activity and 2017 year-to-date posted activity
May 22 Legislature adjourns–LGA amounts and levy limits, if any, may be known _
May 31 Deadline for 2018 and 2019 budget amounts to be entered Online
June 1 Management team reviews initial budget
June 12 Staff reviews updated 2030 Financial Plan with city council Council Workshop
July 10 City council reviews initial budgets—General, Debt,Special Revenue, Capital Council Workshop
Projects and Enterprise funds
August 14 City council reviews updated draft budgets—General, Debt,Special Revenue, Council Workshop
Capital Projects and Enterprise funds—before preliminary levy is adopted in
September
Mid-to-Late Aug Estimated fiscal disparities amount is published
September 5 City council adopts preliminary levy City Council Mtg
Before Sept 30 Finance submits preliminary 2018 levy to Dakota County
October 9 City council reviews proposed 2018 rates and fees schedule Council Workshop
November 13 City council reviews proposed final 2018—General, Debt,Special Revenue, Council Workshop
Capital Projects and Enterprise funds budgets
December 4 Truth-in-Taxation hearing City Council Mtg
City council adopts final 2018 tax levy and General, Debt,Special Revenue,
Capital Projects and Enterprise funds budgets
Mid-December Finance submits final 2018 tax levy to Dakota County
DISCUSSION:
The city's needs, not wants, outstrip available financial resources. Taxpayers have limited resources and face
similar budget challenges. Not addressing needs in a timely manner often results in higher costs. This requires
the city to thoughtfully and intentionally prioritize its spending.
The proposed budgets continue to provide police, fire, streets, parks and recreation, administrative services and
scheduled debt service repayments. The proposed budgets do not fully fund the city's building maintenance,
street maintenance, trail maintenance, or park improvement needs. Difficult choices have had to be made in
preparing this draft for your initial review and consideration.
Your packet includes proposed budgets for 2018 and 2019. You will only be asked to approve the 2018 budgets,
but staff wanted to provide you with a snapshot of 2019. The majority of staff time thus far has been spent
refining the 2018 budgets, especially the General Fund and Debt Service budgets. The 2019 budgets will require
considerably more staff review.
General Fund
The following assumptions have been made for the 2018 General Fund budget. Remarks are generally for the
more significant budget changes and are in the order the line items appear on the General Fund Budget
Summary which is included as the first attachment for this agenda item.
General Fund Revenues
Overall, revenues are projected to increase $49,295 or 1.59% to $3,157,032.
Licenses and permit revenues reflect a decrease in budgeted amounts due to the reduction in available lots for
new construction.
Intergovernmental revenues are projected to increase primarily due to an increase in local government aid (LGA)
which was recently approved by the 2017 state legislature and signed by the Governor.
Fines and forfeitures revenue has continued to decrease over the past several years. This downward trend has
been reflected as a further decrease in the 2018 budget numbers.
Investment income is budgeted to increase due to an increase in the General Fund's investment portfolio related
to the strengthening of the city's General Fund fund balance and an increase in short-term investment rates.
Transfers In represent reimbursement from the city's liquor operations and storm water, solid waste, sewer and
water funds for administrative services and human resource costs paid for by the General Fund which benefit
these funds. This reflects an increase related to increased compensation and benefits arrangements.
General Fund Expenditures
Overall, General Fund expenditures are budgeted to increase $499,644 or 4.09%.
Human resource costs are budgeted at$8,563,786, a 5.32% increase when compared to 2017 budget amounts.
This amount funds existing union contract obligations (all four union contracts expire December 2018) and
estimated benefits arrangements, assumes currently vacant positions are filled and provides for one additional
'to be determined' (TBD) staff position.
Several new staff positions have been requested. Similar to 2017, if the new position is approved, management
group would work together to determine which staffing need is the highest priority. For this draft the TBD position
is included in the administration budget.
Non-human resource costs are budgeted at $4,139,348 or a 1.66% increase from 2017. This includes utilities,
programming expenses, legal, information technology, equipment and supplies, training and subsistence,
outside printing, postage, professional services, etc. Staff has worked hard to keep the increase in these costs
low, especially in the information technology area. The IT staff is working to utilize internal staff (one position
added in 2017) to manage more of the city's network services internally at less cost to the taxpayer.
Department budgets for which their non-human resource budgets increased by more than 1.0% are detailed
below.
Administration — The administration budget increased $10,521 or 3.06%. This includes $19,000 for a
community survey. The city and school coordinate schedules to conduct surveys in opposite years. The
school is conducting their survey this year (odd year). You will hear a summary of their 2017 survey
results during your joint city-school meeting later this month. The city survey will conduct its survey next
year in the even number year. While the results are of interest to both governing bodies, the survey
audiences and questions are different, so it makes more sense to stagger the survey years,then combine
them. On a net basis the remainder of the administration's non-human resource budgets are lower than
a year ago.
Human Resources: The 2018 budget is $28,190 or 31.37% higher than the current year's budget. This
includes $19,900 for amounts which the city has historically paid, but staff noted have not been included
in city budgets. These items relate to the administration or provision of certain employee benefits,
specifically, the Employee Assistance Program (EAP), Health Reimbursement Accounts (HRA's), ICMA
Trust Fees, long-term disability insurance premiums. The 2018 amounts also provide funding for citywide
safety training which is required by OSHA (Occupational Safety and Health Administration) and
anticipated increased legal costs as all of the city's four union contracts will be renegotiated in 2018.
Police — The 2018 budget for police increased $59,188 or 6.83%. Of this amount, the more significant
changes are as follows: $24,000 relates to equipping officers as staffing changes within the department,
$6,806 for the Dakota County Electronic Crimes Unit (ECU) was reclassified from fire to police budget,
$5,000 for increased gun training (ammo and frequency), $2,000 for increased building maintenance
(aging building), and $1,800 for a new maintenance agreement for the Insight Public Sector software
maintenance agreement.
Community Development—The 2018 budget increase of$5,090 or 3.90% provides funding to cover the
payment processing costs associated with electronic payment for non-plan review permits. A
corresponding increase in fee permit revenue has been budgeted to cover the cost of this convenience
for customers.
Parks and Recreation — The 2018 budget increase of$23,439 or 4.98% includes $5,000 to replace an
old mower deck. The other mower deck is being replaced in 2017. The remainder of the increase relates
to the pool.
Each year you continue to review and decide how long to keep the city's pool open. The General Fund
expenditures assume the pool remains open and includes $15,000 in replacement of the bath house
windows, a new concrete sidewalk and entrance area, and increased funding for ongoing maintenance
as the facility ages. The 2019 budget includes $45,000 to replace the bathhouse roof. If the pool were
to remain open through 2019, the city's subsidy is budgeted as follows: 2017-$76,139; 2018-$97,397
and 2019-$105,463.
Transfers out primarily represent the annual funding of the various capital improvement plans. The transfers in
and out are detailed in the attached Operating Transfers worksheet.
Fiscal Disparities
This is a metro wide program that is used to balance the development of commercial and industrial growth
throughout the region. It is a complex calculation that is completed by the city of Anoka on behalf of the metro
cities. The fiscal disparities amounts are published in late August. If the actual amount is higher than the
budgeted amount (currently the same as 2017), then staff recommends that amount be transferred into the
building maintenance fund to address the city's deferred building maintenance needs. If the amount is less than
the amount included in the draft 2018 budget, staff will need to review the situation and make a recommendation
to city council at that time.
Debt Levy
The debt levy represents the amount of tax levy needed to meet the city's 2018 debt repayment obligations.
Use of Fund Balance to Lower Debt Levy
Council has indicated a preference for using a portion of the General Fund fund balance to lower the impact of
the 2018 increase on taxpayers. A provision for$150,000 was set-aside at the end of 2016 for this purpose.
Net Tax Levy
The proposed net tax levy for 2018 is $10,644,009 or a 6.47% increase when compared to 2017.
The proposed General Fund budget and net tax levy are as follows:
2018
2017 Proposed
Budget Budget Change
General Fund Expenditures $12,203,490 $12,703,134 4.09%
Less:
General Fund Revenues 3,107,737 3,157,032 1.59%
Fiscal Disparities 2,136.834 2.115.466 (1.00)%
General Fund Levy 6,958,919 7,430,636
Debt Levy 3,037,903 3,363,373 10.71%
Less:
Use of Gen'l Fund Fund Balance Q 150,000 N/A
Proposed Farmington Net Tax Levy $9.996,822 $10.644.009 6.47%
Remaining Budgets
In addition to the General Fund and Debt Service Funds budgets, the Special Revenue Funds, Capital Projects
Funds and Enterprise Funds are included in your packet. The following comments highlight more notable items.
Comments do not address routine operations.
Special Revenue Funds
EDA — The 2018 budget does not provide any additional funding for the EDA. This fund currently has cash
available for programming. So, 2018 resources have been directed to other areas.
Park Improvement— Historically, the Park Improvement Fund has been used to fund the initial purchase of park
furnishings and playground replacements. Routine maintenance and larger maintenance items have been
funded from within the General Fund budget. As the Park Improvement CIF is developed staff is recommending
a change. Routine maintenance, generally less than $5,000, will continue to be funded from within the General
Fund. Larger maintenance items, generally$5,000 or more,will be budgeted within the Park Improvement Fund.
The 2018 and 2019 budgets provide for $20,000 in tax levy and $75,000 of liquor store operation profits to be
deposited into the Park Improvement Fund. This is not enough to make the Park Improvement Fund self-
sustaining, but it is a solid start to providing a couple of ongoing funding sources for park improvements and
larger maintenance items.
Capital Project Funds
Cable Communications — Negotiations with Charter have stalled. The 2018 budget assumes the negotiations
will need to move to the FCC formal franchise process which will require increased legal costs and also provides
for the increase from part-time to full-time of a cable commission staff person.
Road and Bridge Fund —The 2018 operating transfers is for debt service for the related bonds.
Fire Capital — The transfers into the Fire Capital projects fund ($150,000) are being made as part of the Fire
capital improvement plan (CIP) and will be used to purchase a new fire engine in 2019.
Storm Water Trunk—The transfers in represent the annual repayment of principal and interest on interfund loans.
The city utilized interfund loans because in certain situations it was less costly and provided more flexibility than
bond re-financing.
Recreation Capital Projects Fund —Accounts for the capital improvement funds for the Rambling River Center
and the ice arena. The 2018 budget anticipates continued fundraising for the senior center of approximately
$16,500 in 2018 for capital improvements as prioritized by the Rambling River Center Advisory Board. The ice
arena budget includes the continuing planned annual donation by Farmington Youth Hockey of$5,000 and the
transfer in of$20,000 for ice arena operations for capital improvements.
General Capital Equipment -- The 2018 budget provides for police ($18,100) and fire ($79,500) equipment and
police vehicle ($110,000) replacements per the corresponding CIP's included in the city's 2030 Financial Plan.
The underlying fire equipment CIP budget relies on the receipt of$8,000 in donations from Fire Relief to assist
with the fire equipment purchases.
Maintenance Fund —This funds accounts for funds related to maintenance projects. The 2018 budgets provide
the following in accordance with their CIP's: seal coating ($460,000), street maintenance ($300,000 in planning
for TBD street project to occur in 2019), trail maintenance ($22,750), township road maintenance ($3,000),
emerald ash borer treatments ($18,000).
MSA 195th street construction reimbursements are initially recorded here. They will be subsequently transferred
to the Storm Water Trunk Fund to pay off the interfund loan for this project. Any remaining and future MSA
construction reimbursements related to the 195th street project will be captured in the Maintenance Fund and
used for future street projects. The next large-scale project (exact location TBD) is planned for 2019.
Finally, approximately $37,000 is being transferred into the building maintenance account. This is far less than
the building study indicated the city needs for building maintenance. The current draft also includes several
building maintenance needs for the police and fire department buildings. These are placeholders for discussion.
The building study will be used to help prioritize the projects for which building maintenance funds are used and
the next version of the budget updated accordingly. Funding and prioritizing building maintenance needs will be
an ongoing challenge for the city for the next 10 years.
Enterprise Funds
Liquor Operations—The liquor operations budgets provide for the annual transfer to reimburse the General Fund
for administrative services (payroll, finance, IT, communications, administration, etc.) and a transfer of$75,000
of liquor store profits to the Park Improvement Fund to help fund a portion of the city's park improvement needs.
Sewer Fund — The 2018 provides for a typical year of operations. As mentioned during the first quarter 2017
financial review the Metropolitan Council Environmental Services(MCES)fee increases have outpaced the city's
fees increases. The draft 2018 budget assumes the current fee structure is in effect for 2018 which would result
in a projected $592,000 deficit. Sewer rates will need to be re-visited this fall when you adopt the fees for 2018
as the current fee structure is not adequate.
Solid Waste— For 2018 the notable expenditures include approximately $100,000 to replace a hook truck and
approximately $260,000 to replace a rapid rail. The replacement of these items has been planned for in this
fund. No borrowing will be needed. Sample pictures of both trucks are included on the following page.
rd
Sample picture of a hook truck (excluding the large dumpster).
The city's oldest hook truck is a 2000 (i.e. 17 years old). .��� � 'f
•
s
•
•
Sample picture of a rapid rail truck.
j'�f The city's oldest rapid rail is from 2005 (i.e. 12 years old).
Irlt 01-
4
,46111
3 '1
Storm Water Fund — The 2018 provides for a planned rate increase, effective 1/1/18, in accordance with the
long-term storm water financial plan and for the purchase of a new street sweeper at an estimated cost of
$160,000 to replace the city's current 1999 street sweeper.
david
Water Fund —The 2018 budget provides for the purchase of a new plow truck at an estimated cost of$215,000.
The city's dump trucks are used year round, including for snow removal (with plow) and to support the water,
storm and sewer fund operations. The city needs to replace several trucks. The city's vehicle CIP has been
updated to reflect the following purchase replacement plan for dump/plow trucks: water fund (2018), sewer
(2019), storm (2020), and general fund (2021).
Funding Gaps
Some areas where funding gaps remain (not a complete list) in 2018 and will continue to be challenges into the
future:
• Additional staffing needs
• Building maintenance funding
• Compensated absences funding
• Emerald Ash Borer funding
• Park improvement funding
• Street and trail maintenance funding
BUDGET IMPACT:
The budget impact is summarized within the content of this memo.
ACTION REQUESTED:
• Review, discuss, ask questions about and provide direction to staff on the proposed 2018 budgets.
CITY OF FARMINGTON
2030 FINANCIAL PLAN
BUILDING CIP SCHEDULE
ADMINISTRATOR SCHEDULE
1 2 3 4 5
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2023 2029 2030
CITY HALL
SITE
NONE
TOTAL SITE $0 $0 So $0 $0 $0 So $0 $0 $0 $o SO SO
EXTERIOR
EXTERIOR MASONRY JOINTS $6,000
REPLACE ROOF SYSTEM $660,000
TOTAL EXTERIOR $0 $3,000 $0 $0 $0 $0 $0 $810,000 $0 $0 $0 $0 $0
INTERIOR —
BREAKROOM SEALANT REPLACEMENT $200
PAINT DOOR FRAMES $1,600
REPLACE CARPET IN HALLWAY $2,200
REPLACE PARTIAL LOBBY CARPET $10,000
REPLACE CRACKED VCT ON 2ND FLOOR $500
REPLACE CEILING TILES $500
REPAIR WALL IN CONFERENCE ROOM $500
PAINT TOUCH UPS $5,200
TOTAL INTERIOR $0 $0 $0 $0 $0 $12,200 $0 $0 $0 $0 $0 $0 $3,300
ACCESSIBILITY .
NONETOTAL ACCESSIBILITY $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $o $0
UFE SAFETY
NONE
TOTAL LIFE SAFETY $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $o
HAZARDOUS MATERIALS
NONE
TOTAL HAZARDOUS MATERIALS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $o
MECHANICAL
UPDATE DIGITAL CONTROL SYSTEM $175,000
REPLACE WATER HEATER $28,750
TOTAL MECHANICAL $0 $0 $0 $0 $0 $203,730 $0 $0 $0 $0 $0 $0 $0
ELECTRICAL I [--
------ --
REPLACE EXTERIOR HALIDE FIXTURES $16,700
TOTAL ELECTRICAL $0 $16,700 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
8/9/2017 2030 Financial Plan Info
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ELECTRICAL _ _____..
REPLACE DISTRIBUTION EQUIPMENT $19,800_
REPLACE UGHTING WITH LED $16,100
PROVIDE OCCUPANCY SENSORS $3,000
REPLACE SIGNAGE AND EMER.UGHTS $9,300
PROVIDE EXTERIOR EGRESS LIGHTING $6,700
REPLACE EXTERIOR UGHTING WITH LED $60,200
REPLACE POWER OUTLETS $8,800
PROVIDE FIRE ALARM SYSTEM $3,000
TOTAL ELECTRICAL $0 $126,900 $0 $0 $0 SO $0 $0 SO So So SO $0
PROGRAM
RENOVATE EXISTING POOL $260,000
•
CONSTRUCT NEW SPLASH PAD $110,000
• ADD MECHANICAL BUILDING $270,000
•
• TOTAL PROGRAM $0 $0 $0 $0 $0 $640,000 $0 $0 $0 $0 $0 $0 $0
SWIMMING POOL TOTAL $0 $223,900 $0 $0 $0 $770,000 $0 $0 $0 $0 $O $0 $157,000
$1,160,900
1 2 3 4 5
•
FIRE STATION 91 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2630
SITE
• REPLACE CONCRETE APRON $25,000
TOTAL SITE $25,000 $0 $0 S9 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXTERIOR
REPLACE EXTERIOR DOORS ON APP.BAY $5,200
REPLACE EXTERIOR DOORS ON APP.BAY $2,600
PAINT EXTERIOR UNTENLS $500
CLEAN CONCRETE BLOCK $1,100
ROOF REPAIRS -.._._
REPLACE SKYUGHT $92,000
REPLACE WINDOWS $92,000 ' •
TOTAL EXTERIOR $7,900 $500 $0 $0 $0 $0 $0 $92,000 $0 $0 $0 $0 $95,100
INTERIOR
REPLACE CARPETING _.._..__._ $15,000
• REPLACE CEILING TILES $15,000 -
REPLACE SHELVING $5,200 •
REPLACE CASEWORK $16,000
REPAIR WINDOW TRIM $1,000
REPAIR GYPSUM BOARD WALLS $2,000
TEST FOR MOISTURE ISSUES $1,500
•
• TOTAL INTERIOR $3,000 $51,200 $0 $0 $0 $1,500 $0 $0 $0 $0 $0 $0 $0
1 I I,
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8/9/2017 2030 Financial Plan Info
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• INTERIOR
REPLACE SEALANT IN BREAKROOM _ $500
REPLACE CEIUNG TILES $100
_
REPAIR GYPSUM JOINT WALL ISSUE -- — -- _-_--- $3,000
REPLACE COUNTERTOP _ $5,000
TOTAL INTERIOR $0 $5,000 $D SO SO SO $0 $0 $O $0 $o $0 $3.600
•
ACCESSIBILITY
NONE
TOTALACCESSIBILITY SO SO So $0 So So $0 So So $o 5o So SO
UFE SAFETY -- -- _ --
NONE
TOTAL LIFE SAFETY SO So So So SO to $0 So So $0 $o to So
HAZARDOUS MATERIALS
NONE
TOTAL HAZARDOUS MATERIALS $0 $0 $0 S0 SO SO S6 So So $0 $0 $6 $O
MECHANICAL
REPLACE GAS FURNACES _ $110,000
TOTAL MECHANICAL $0 $0 SO $0 SO $110,000 $0 $0 $0 SO SO $0 So
ELECTRICAL
PROVIDE OCCUPANCY CENSORS $6,400
REPLACE EXTERIOR LIGHTING $29,500 – —
TOTAL ELECTRICAL $0 $35,900 SO $0 $0 $0 SO SO $0 $0 SO $0 SO
I I
FIRE STATION 02 TOTAL $5,000 $40,900 $0 $0 $0 $110,000 $0 $0 SO $0 $0 $0 $3,600
$159,500
1 2 3 4 5
SOIIMITZ-MAKI ARENA 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2029 2029 2030
SITE _
RECONSTRUCT PARKING LOT $150,000
REPLACE CONCRETE ENTRANCES $20,000
REPLACE SIDEWALKS $25,000
TOTAL SITE $0 $195,000 $0 $0 $0 $0 $0 $0 $0 $0 SO $0 $0
EXTERIOR - --__
REPLACE EXTERIOR DOORS $25,000
PROVIDE WEATHER BARRIER LOCKER ROOMS $150,000
RECAULK 2500 FEET AT JOINTS $55,000 _.. _......
REPLACE ROOF $900,000
TOTAL EXTERIOR $25,000 $1,050,000 $0 SO $0 $55,000 $0 $0 $0 $0 SO $0 $O
INTERIOR I I I I I 1____._.._.
1 8/9/2017 2030 Financial Plan Info
REPLACE SEALANT • $5,000
REPAINT AFTER LOCKER ROOM WALL ISSUE $10,000
REPLACE CARPET IN OFFICE
$12,000
REPLACE CEILING TILE $10,000
�., TOTAL INTERIOR $0 $15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 so $22,000
ACCESSIBILITY
REPLACE COUNTERTOPS CONCENSSION STAND $8,000
•
MODIFY EXTERIOR RAILING ADA $15,000
PROVIDE PLATFORM LIFT TO MEZZANINE LEVEL $50,000 _
REMODEL BATHROOMS ADA $200,000
•
• REPLACE DOORS ADA $30,000
TOTAL ACCESSIBPJTY -_ $0 $105,000 $0 $0 $0 $200,000 $0 $0 $0 $0 $0 $0 $0
•
UFE SAFETY ------
• EXIT UGHTS/SIGNS $500
•
• RAIUNGS/MODIFY STAIRS ADA $25,000
. REPLACE GUARD RAILS ADA _ $50,000
TOTAL LIFE SAFETY $0 $75,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HAZARDOUS MATERIALS
PERFORM HAZARDOUS MATERIAL REPORT $5,000
TOTAL HAZARDOUS MATERIALS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,400
MECHANICAL .. -._
REPLACE AIR HANDLER AND NETWORK $235,000
REPLACE EXHAUST FANS $30,000
REPLACE PLUMBING FIXTURES $145,000
TOTAL MECHANICAL $0 $265,000 to $0 $0 $145,000 $0 $0 $0 SO $0 S0 $0
i
ELECTRICAL
REPLACE DISTRIBUTION EQUIPMENT $22,800
REPLACE LIGHT FIXTURES $38,400
PROVIDE OCCUPANCY SENSORS $4,800
PROVIDE LIGHTING $24,300
PROVIDE EXTERIOR LIGHTING $10,800
REPLACE LIGHTING $42,200
PROVIDE LIGHTING IN NEW PARKING LOT $47,400
PROVIDE FIRE ALARM SYSTEM $29,800
TOTAL ELECTRICAL. $0 $182,100 $0 $0 $0 $38,400 $0 $0 $0 $0 $0 $0 $o
PROGRAM
_-
•
• PROVIDE A NEW LOCATION FOR ZAMBONI $10,000
TOTAL PROGRAM $0 $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
•
TOTAL SCHMITZ-MAKI ARENA $25,000 $1,005,600 $0 $0 $0 $438,400 $0 $0 $0 $0 $0 $0 $27,000
8/9/2017 2030 Financial Plan Info
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1 2 3 4 5
MAINTENANCE FACILITY 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
i SITE
NONE
TOTAL SITE $0 $0 So $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EXTERIOR
PATCH ROOF VEHICLE STORAGE $8,000
PATCH ROOF BREAK ROOM/GARAGE ENTRY $8,000
REPLACE ROOF $1,100,000
TOTAL EXTERIOR $16,000 $1,100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
INTERIOR
REPLACE CONCRETE $300,000
PROVIDE SALT GUARD SEALER $100,000
PROVIDE FRESH EPDXY PAINT TO WALLS $25,000
REPLACE CEILING TILES $2,000
REPLACE VCT FLOORING $16,000
REPLACE COUNTERTOP _ $3,000
REPAIR METAL DOORS $9,000
REATTACH VINYL BASE $500
TOTAL INTERIOR $0 $400,000 $0 $0 $0 $46,000 $0 $9,500 $0 $0 $0 $0 $0
ACCESSIBILITY —
NONE i
TOTAL ACCESSIBILITY $0 $0 $0 $0 $0 So SO $0 So $0 $0 $0 $0
• —
'.. LIFE SAFETY
NONE
TOTAL LIFE SAFETY $0 $0 $0 $0 $0 So SO So So So So $o SB
HAZARDOUS MATERIALS
—
'
NONE r 1
TOTAL HAZARDOUS MATERIALS_ — $0 $0 $0 $0 $0 SO $0 $0 $0 $0 $0 $0 $0
•
MECHANICAL
REPLACE BOILERS AND WATER PUMPS $225,000
UPDATE CONTROL SYSTEMS $175,000
REPLACE AIR UNITS $275,000
•
RAPLACE ROOFTOP UNIT _- $45,000 - _--
RAPLACE WATER HEATERS $100,000
TOTAL MECHANICAL $0 $0 $0 $0 $0 $820,000 $0 $0 $0 $0 $0 $0 $0
ELECTRICAL
ADD TRANSFER SWITCH AND EMER.UGHTING $27,000
UPGRADE UGFT FIXTURES $48,000
PROVIDE BUILDING SENSORS $26,000
8/9/2017 2030 Financial Plan Info
PROVIDE EXTERIOR LIGHTS $12,600 I
•
REPLACE EXTERIOR LIGHTING $43,800
PROVIDE POWER OUTLETS $18,000 I.
TOTAL ELECTRICAL $0 $175,400 $0 $0 $0 S0 $0 $0 SO $0 $0 S0 $0
1 I I I I I I
TOTAL MAINTENANCE FACILITY $16,000 $1,675,400 $0 $0 $0 $866,000 $0 $9,500 $0 $0 $0 $0 $0
• $2,566,900
1 2 3 - 4 5
POLICE STATION 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2026 2029 2030
SITE
CONNECT STORM WATER PIPES TO SEWER $50,000 •
TOTAL SITE $0 $0 $0 $0 $o $0 $0 $50,000 $0 SO $0 $0 $0
EXTERIOR
--
REPLACE OVERHEAD DOOR $800
PAINT DOOR FRAME
REPLACE ROOF $420,000
TOTAL EXTERIOR $0 $420,800 $0 $0 $0 $0 $0 $0 $0 SO $0 $0 $500
INTERIOR ___... -.-.
REPLACE CARPET $45,000
REPLACE CEILING TILES I $1,000
TOTAL INTERIOR $0 $45,000 $0 $0 $0 $0 $0 $0 SO $0 $0 $0 $1,000
1 —
ACCESSIBILITY
NONE j
TOTAL ACCESSIBILITY $0 p,,, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
LIFE SAFETY
NONE
TOTAL LIFE SAFETY $0 $0 So So So So So $o So So So So So
HAZARDOUS MATERIALS
NONE
TOTAL HAZARDOUS MATERIALS • $0 $0 $0 $0 $0 $0 $0 So $0 $0 $0 $0 $0
MECHANICAL
--
REPLACE ROOFTOP AIR UNIT $130,000
REPLACE BOILERS AND WATER PUMPS $215,000
REPLACE COOLING SYSTEM SERVER $15,000
UPDATE CONTROL SYSTEM $85,000
TOTAL MECHANICAL $0 $145,000 . S0 $0 $0 $806000 $B $6 $0 $0 $0 $0 SO
__.___.
ESECTRIAL .__
PROVIDE OCCUPANCY SENSORS $9,000
PROVIDE EXTERIOR LIGHTS $9,000
•
8/9/2017 2030 Financial Plan Info
TOTAL ELECTRICAL $0 518,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TOTAL POUCE DEPARTMENT $0 $628,800 $0 $0 $0 $300,000 $0 $50,000 $0 $0 $0 $0 $1,500
• $800,300
1 2 3 45
-_5
RAMBUNG RIVER CENTER 2018 2019 2020 2021 2022_..___. 2023 2024 2025 2026 2027 2025 2028 2030
SITE
REPLACE PARKING LOT $150,000
-
REPLACE WALWAYS $2,000 I -- -
'TOTAL SITE $0 5182,000 $0 $o $0 $o $0 $o so $0 $0 $0 So
EXTERIOR
DEMOLISH WELL BUILDING $35,000 _
REPLACE EXTERIOR DOORS $5,500
REPLACE DOORS $2,000
REPAINT EXTERIOR WALLS $6,500
PAINT SOFFITS AND WALLS $10,000
REPLACE ROOF $70,000
TOTAL EXTERIOR _ $77,5000 $51,500 $o So $0 $0 $o $o $0 $o $0 $0 so
INTERIOR _
REPLACE CARPET $20,000
REPLACE CEILING TILES $5,000 _
NEW COAT OF CONCRETE PAINT $2,000 • ___ _ __
NEW COAT OF CONCRETE PAINT $2,500
PAINT WALLS IN GARAGE $3,000
PATCH CONCRETE WALLS $500
REPLACE PLASTER CEILING $3,000
REPLACE PUNK FLOORING $500 --
REPLACE FLOORING IN VESTIBLE $2,000 ,
REPLACE FLOORING IN STORAGE ROOM $2,000
li REPLACE FLOORING $1,000
TOTAL INTERIOR ... $0 $29,500 $0 SO $0 $7,080 $0 $0 $B $0 $0 $0 SB,soo
ACCESSIBILITY
INSTALL AUTOMATIC DOORS $20,000
PROVIDE RAMP AT DOOR $10,500
REPLACE INTERIOR DOORS $16,000
REPLACE COUNTERTOP $5,000
TOTAL ACCESSIBILITY ___.. $0 $51,500 $0 $o $0 $0 So 50 $0 SO $0 $0 50
LIFE SAFETY _
PROVIDE SMOKE SEALS $1,300
-
SEAL WALLS "-- --$10,000 -- ---.. _
PROVIDE FIRE RATED DOORS $5,000
PROVIDE FIRE RATED DOOR _ $2,500
8/9/2017 2030 Financial Plan Info
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TOTAL MAINTENANCE FACILITY $16,000 $1,675,400 $0 $0 $0 $866,000 $0 $9,500 $0 $0 $0 $0 $0
TOTAL POUCE DEPARTMENT $0 $628,800 $0 $0 $0 $300,000 $0 $50,000 $0 $0 $0 $0 $1,500
TOTAL RAMBLING RIVER CENTER $88,800 $445,225 $0 $0 $0 $182,500 $0 $0 $0 $0 SO $0 $87,500
TOTAL $179,000 $5,476,175 $0 $0 _ $0 $3,144,850 $0 $811,500 ... $0 $0 $0 $0 $397,200
$10,004,ns
BUILDING MAINTENANCE CIP FUNDING/FUND BALANCE 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
STARING BALANCE $126,400 $0 -$5,466,175 -$5,379,568 -$5,227,961 -$5,071,354 -$8,079,597 -$7,892,990 -$8,547,883 -$8,361,276 -$8,179,669 -$7,843,062 -$7,106,455
TOTAL ANNUAL EXPENDITURES $179,000 $5,476,175 $0 $0 $0 $3,144,850 $0 $811,500 $0 $0 $0 $0 $397,200
TAX LEVY REVENUE $0 $0 $0 $0 $0 $0 $0 $20,000 $0 $25,000 $200,000 $600,000 $600,000
LIQUOR STORE REVENUE $52,600
LGA FUNDING $0 $10,000 $86,607 $151,607 $156,607 $136,607 $186,607 $136,607 $186,607 $156,607 : $136,607 $136,607 $136,607
YEAR ENDING BALANCE $0 -$5,466,175 -$5,379,568 -$5,227,961 -$5,071,354 -$8,079,597 -$7,892,990 -$8,547,883 -$8,361,276 -$8,179,669 -$7,843,062 -57,106,455 -$6,767,048
RED ITEMS WERE MOVED BACK AT LEAST ONE YEAR
BLUE ITEMS WERE MOVED FORWARD AT LEAST ONE YEAR
8/9/2017 2030 Financial Plan Info
4 r r��► City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 -Fax 651.280.6899
••A 11400.41° www.ci.farmington.mn.us
TO: Mayor, Councilmembers and City Administrator
FROM: David McKnight, City Administrator
SUBJECT: City of West St. Paul Request
DATE: August 14, 2017
INTRODUCTION
The city of West St. Paul has requested that other cities in Dakota County review the attached information
related to the Robert Street construction project and who/how paid for the project. They are looking for
potential support as they approach the legislature on possible relief on this project.
DISCUSSION
The City of West St. Paul has requested that other cities in Dakota County review the information on their
Robert Street reconstruction project and potentially offer support as they approach the legislature for
potential financial relieve on the project.
This project has had many issues that you may have read about in the newspaper over the past few years. I
will over some background on the attached information and the discussion we had on this project at the July
Dakota County city administrators meeting.
BUDGET IMPACT
NA
ACTION REQUESTED
Discuss this issue as requested by West St. Paul and provide staff with any direction you may have.
ATTACHMENTS:
Type Description
D Backup Material West St. Paul Info
ov- ST`rF CITY OF WEST ST. PAUL
e
a*ow�� STATE HIGHWAY 952A
�ARov€0- STATE FUNDING REQUEST
A Note From West St. Paul Mayor Jenny Halverson
"The City of West St. Paul recently reconstructed State Highway 952A on behalf of the State of
Minnesota. Given that this is a State Highway, the State Department of Transportation has driven
nearly all design decisions for this project. Our community is now faced with paying the bill for
a State Highway; we cannot afford to carry this misplaced burden. Now that construction is
complete,we are seeing a significant increase in redevelopment opportunities along the corridor.
A direct result of this project will be an increase in annual sales tax and property tax revenue for
the State. These increases will yield far greater financial gains for the State than what granting
our request would cost the State. The following presentation briefly describes: how we got here,
how the costs disproportionately borne by West St. Paul vary from what other similarly situated
communities have incurred,the precedent that exists for granting our request,and why providing
relief to our residents should be widely acknowledged as the responsible and appropriate course
of action. Our taxpayers deserve Legislative attention to correct the deleterious situation we
currently face as a result of necessary improvements made to this 2.5-mile segment of the State
f
i.\ Highway system."
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TABLE OF CONTENTS
Project Overview 2
Request 3
4 Local Funding Share 4
Urgency 5
Cost inflation 6
itPrecedence 7
Debt Creation 8
iii State Funding 9
Tax Capacity 10-11
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952A - South Robert Street, West St. Paul rcial
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PROJECT OVERVIEWt
INTRODUCTION
The City of West St. Paul accepted the leadership responsibilities for addressing the significantly
deteriorating conditions of TH952A (South Robert Street). The reconstruction of this 2.5 mile corridor has
been completed. Due to the unsafe conditions of the road surface, as well as required deadlines of federal
grant proceeds,the City authorized this project to proceed while it requested $12 million of additional State
Trunk Highway proceeds in each of 2015, 2016 and 2017. State bonding bills were not approved in 2015 or
2016 and by 2017 the project was virtually complete.
REQUEST
The City of West St. Paul is requesting $12 million of supplemental financial assistance to reimburse the
City for project costs which would increase the State's contribution to 46% of the total project cost. The
State's contribution at that level would still be far deficient from typical contributions to state highway
projects.
PROBLEM
• State pavement quality ratings placed the condition of this corridor at the bottom 8% of all MN State
Roads.
• Before construction, this corridor section ranked in the top 5 MN Trunk Highways for vehicle crashes.
• Traffic volumes are expected to grow to over 32,000 vehicles/day.
• The aging infrastructure created a significant barrier for successful commercial and retail opportunities
which negatively impacts annual State sales tax revenues.
• The previous road conditions had a direct and negative impact on the perception, future growth and
long term stability of West St. Paul as businesses struggle to be successful, commercial investors would
search elsewhere and homeowners select alternative locations to live.
• The funding for this State Trunk Highway project has disproportionately fallen onto West St. Paul
taxpayers resulting in significant increases in homeowners' and businesses' property taxes.
PROJECT
• Phase 1 - Robert Street has been reconstructed into a divided four lane Highway. The project includes
a new asphalt road surface, new LED street lighting, replacement of necessary underground utilities,
installation of fiber optic for intersection controls and future economic development opportunities.
• Phase 2 - Installation of sidewalks to create a safe, pedestrian-friendly corridor and landscaping to build
an inviting atmosphere for future private investment. Phase two includes over$3,000,000 in landscaping
which is 100% paid for by the City of West St. Paul.
PROJECT COST AND
FINANCIAL BURDEN
Federal Grant Dakota County
Project Cost $8,000,000 $2,000,000.4%
$46,000,000 170
City of
West St.Paul Stale/MnDOT St,Paul Water
5&132,000 —$1,138,000-3%
$266,p699,000 18%
Local Share 58% f+\ Cities of lnve;Grove
65% � r 531,000 Sal nt Paul
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952A - South Robert Street, West St. Paul h
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A REASONABLE REQUEST
State Trunk Highway 952A Cost Share Scenarios
CURRENT TYPICAL REQUESTED
AO ' 4 - -L
STATE/ '� 16%
FEDERAL LOCAL
r 35% 39/ STATE/
LOCAL FEDERAL
65% N\ STATE/ \ / 61%
FEDERAL
' 84%
LOCAL LOCAL ; LOCAL
(West St.Paul,Dakota County,SPRWS, (West St.Paul,Dakota County,SPRWS, I (West St.Paul,Dakota County,SPRWS,
St.Paul,Inver Grove Heights) St.Paul,Inver Grove Heights) St.Paul,Inver Grove Heights)
$29,900,000 - 65% $7,360,000 - 16% $17,900,000 - 39%
III STATE / FEDERAL II STATE / FEDERAL I STATE / FEDERAL
$16,132,000 - 35% $38,640,000 - 84% $28,100,000 - 61%
$8,000,000-FEDERAL
$20,100,000-STATE
Local share includes cost of, and engineering for:sidewalks,trails,street lights, utilities,and right-of-way.
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952A - South Robert Street, West St. Paul cr
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LOCAL FUNDING SHARE - ,,,
RO V E ot.
In an examination of recent Metro District MNDOT projects totaling $161.3M, MNDOT has
informed us that the locals experienced $25.9M in project costs which is 16% of total project
costs. For 952A the Local share is 65%, or $29.9M of a total $46M project. Our local share is
twice that, on a percentage basis, of the next highest project in the Metro District and four
times higher than the average of these projects.
Of note is that MNDOT has programmed a $12.4M mill and overlay project on 952A in St.
Paul for 2021 with the local share programmed at 1.5M which is 12% of project cost. The
West St. Paul segment was a full reconstruct and MNDOT is contributing only $8.1M.
State Highway Project Total Cost Local % Share Local $ Share
West St. Paul 952A $46M 63% $29,900,000
TH7/Wooddale $11.6M 29% $3,364,000
135E @ CSAH 14 $18.4M 8% $1,472,000
TH36 @ Rice $16.6M 1% $166,000
TH13/CSAH S $31.9M 3% $957,000
TH7 @ Louisiana $25.2M 29% $7,308,000
TH169/CSAH 69 $16.7M 25% $4,175,000
TH101/CSAH 144 $22.4M 14% $3,136,000
CSAH 12 @ 35 $18.5M 29% $5,365,000
Total (excluding 952A) $161.3M 16% $25,900,000
952A Current Local Share 952A Local Share at Average
$29.9M $7.36M
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65% 16%
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952A - South Robert Street, West St. Paul 'o** Q �`�:'
URGENCY
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According to MnDOT's own standards, pre-construction State
Highway 952A was in the bottom 8% of roads in MN and at the same
time in the top 5% for crashes. The condition of Robert Street was
so dreadful that ambulances took longer routes to hospitals to avoid
Robert Street for the safety of their patients.
Due to the dire circumstances, Robert Street was awarded an $8M
f ...
Federal grant to help repair and reconfigure the road. The grant came
with the stipulation that the project must begin by May, 2015. Rather
than allow 32,000 vehicles travel the deadly road and lose $8M in
federal funding, West St. Paul decided to move forward.
$8,000,000 ..
1100 + in federal funds would • •
crashes in
have been lost if WSP fatalities in
2006-2014 didn't step up -,__. ----,., 2006-2014
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952A - South Robert Street, West St. Paul q..*(;)(i,
COST INFLATION -.. „ &
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When the State of Minnesota provided partial State
Highway 952A funding, local costs were projected
at $13.66M on a $26.3M project. Now, local costs are
projected at $29.9M on a $46M project; a local cost
increase of $16.24M.
Year Estimate Federal State Local
2011 $11.3M $7.3M NA $4M
2012 $13.5M $7.3M NA $6M
2013 $21M $7.0M NA $14M
2014 $26.3M $7.0M $5.64M $13.66M
2015 $32.2M $6.99M $5.6M $19.61M
2016 $42M $8M $5.6M $28.4M
2017 $42.3M $8M $8.1M $26.2M
2018 $46 M $8M $8.1M $29.9M
Final Estimated Local Costs
2011 Estimated Local Costs $29.9M
$13.66M
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SIGNIFICANT PRECEDENCE &y
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The City of West St Paul is requesting an increase
in LGA to cover some of the project costs for this
State Highway project that are being borne by Local
Government. According to House Research there is
significant precedent for LGA increases due to similar
situations around the state.
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LGA Increases for Local Hwy �%
costs and either Ten Year Term or ,, =-
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permanent approved increases �� r - _
have been typical. 1
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Year City Increase Term Basis
1998 Coon Rapids $450K 10 year Interchange
2000 Baxter $225K 3 year Hwy 371 Bypass Local Share
2001 Newport $15OK 10 year Hwy 10 Local Costs
2002 Osseo $50K 10 year Various Road Improvements
2004 Red Wing $200K Permanent Public Safety Costs
2009 Newport $75K 6 year Hwy 10 Additional Local Costs
2009 Taylors Falls $30K Permanent Public Safety Costs
2009 Crookston $100K 5 years Floodplain Relocation
2009 Mendota $25K 5 years Sewer Infrastructure
952A - South Robert Street, West St. Paul *Qiili
DEBT CREATION
____________ �
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The debt for West St. Paul taxpayers due to this project
is projected up to $1.9M/year. That alone, for this single
project, represents 14% of our General Operating Fund
and 15%of our levy.This cost burden impacts a generation
of West St. Paul taxpayers.
Year Issued Max Annual Payment Term Retired
2014 $4,930,000 $387,246 15 years 2030
2015 $0 $0 0
2016 $4,825,000 $408,250 16 years 2033
2017 $4,825,000 $428,100 16 years 2034
2018/'19 $7,632,300 $677,165 16 years 2035
West St. Paul's Projected
Total Debt $22,212,300
Max Annual Payment _
$1,900,761
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952A - South Robert Street, West St. Paul Q-
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NEED FOR STATE FUNDING -4.0v Emosommommom
West St. Paul is not a community of great property wealth or future growth opportunities
that would result in readily covering State Highway 952A Project Debt.
West St. Paul Further, property values have not recovered in
West St. Paul from the recession.
currently has The average residential market
value in 2017 is still 16%below that
0 of 2009.Our total tax capacity value
26 in 2016 was 18% below that of 2008 while
the tax rate in 2016 was 160% greater than
Less tax capacity per capita than that which was levied against local taxpayers
the average of similarly sized in 2008. This is due to the stagnation in property
metro communities.(39 Cities) values at the same time as project costs from 952A
were coming on line.
-and-
West St. Paul is projecting that creation of $15M in
3 O retail market value across 22 acres of Robert Street
can create a State sales and property tax revenue
Less tax capacity per capita than stream of$1M per year. Redevelopment of just
the average of similarly sized 6% of existing taxable market value on the
corridor would be required to hit that mark.
Greater MN communities. (28 Cities)
Robert Street businesses in West St. Paul generate over
$ 20 MILLION
to state coffers annually; $17-19M in sales tax, $2.4M in State Property Tax.
WEST ST. PAUL BY THE NUMBERS
Tax Capacity per capita - $658 West St. Paul's request is a return
of just 5% of that which the State
2009 Mean Residential Est. Market Value - $219,285 receives each year from Robert
2017 Mean Residential Est. Market Value - $184,500 Street to pay the Debt Service
2008 Tax Rate- 44% for Robert Street.
2016 Tax Rate - 70%
2008 City-wide TC Value - $20,297,053
2016 City-wide TC Value- $16,647,178
952A - South Robert Street, West St. Paul
(L-.cPT s T R�F-A
TAX CAPACITIES (METRO)
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R0 V E Mia
Tax Cap. Household
City per capita Net Levy LGA Income
7.--".
Monticello $1794 $641 $70,254
Mendota Heights $1656 $582 $95,353
Chanhassen $1545 $380 $110,569
Golden Valley $1491 $814 11 $81,534
Rogers $1274 $515 8 $103,980
METRO( f Arden Hills $1158 $316 $80,208
Mound $1099 $550 32 $73,750
111111 Prior Lake $1063 $340 $96,405
Shoreview $1022 $357 $79,252
Hugo $1018 $362 $82,880
Vadnais Heights $997 $268 2 $71,518
Waconia $939 11,752 7 $79,600
TAKEAWAYS Stillwater $937 $516 31 $76,970
Rosemount $928 $419 $90,448
• Within 39 metro cities Chaska $913 $226 19 $75,828
WSP has the 8th Ham Lake $896 $241 $91,603
lowest property wealth Forest Lake $848 $363 3 $69,315
as measured by Tax White Bear Lake $830 $169 64 $62,205
Capacity per capita Lino Lakes $830 $363 $102,904
Saint Michael $818 $316 14 $92,546
• All but one city with Little Canada $808 $248 35 $50,156
lesser property wealth Hopkins $806 $492 16 $50,252
receives significantly Oakdale $784 $307 4 $67,036
more LGA/capita Fridley $748 $325 44 $54,652
Champlin $745 $307 10 $83,851
WSP has 8th highest Net Ramsey $734 $310 4 $86,794
• Levy with highest levy Otsego $734 $302 8 $79,117
New Brighton $720 $261 22 $60,964
among peer cities Hastings $680 $426 23 $62,976
New Hope $677 $372 $50,165
• WSP property wealth is East Bethel $666 $343 2 $87,245
26% BELOW the average Farmington $664 $408 11 $87,925
of these peer cities West St. Paul $658 $465 58 $47,710
Mounds View $588 $252 48 $57,799
• WSP Net Levy is 28% Crystal $585 $287 73 $59,188
ABOVE the average of South St. Paul $572 $346 113 $55,607
these peer cities North Saint Paul $548 $193 160 $55,708
Robbinsdale $540 $270 114 $57,357
Anoka $526 $237 89 $45,820
Columbia Heights $483 $342 71 $47,717
Average(w/o WSP) $888 $365 37 $73,881
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952A - South Robert Street, West St. Paul �
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TAX CAPACITIES (GREATER MN) BAR ���y.
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INIIIIMISTIMMENIMIll
Tax Cap. Household
City per capita Population LGA Income
Red Wing $1,586 16,534 98 $45,890
GREATER Alexandria $1,080 13,340 113 $40,633
•
Elk River $885 23,987 10 $77,938
M N Marshall $777 13,793 180 $46,863
Sartell $763 17,203 7 $73,872
North Mankato $762 13,689 116 $55,440
a Fairmont $754 10,421 356 $47,428
Grand Rapids $714 11,281 116 $39,777
Fergus Falls $708 13,288 274 $43,852
Buffalo $704 16,033 41 $63,830
Owatonna $666 25,782 155 $55,884
North Branch $661 10,330 53 $67,122
TAKEAWAYS Cloquet* $657 12,271 189 $46,064
Willmar' $647 19,848 225 $42,250
West St. Paul tax Winona* $638 27,591 349 $41,053
• capacity per capita is Hutchinson* $637 14,170 158 $51,032
3% below the average Northfield $627 20,320 138 $57,866
of these 28 Greater MN Bemidji $618 14,969 237 $35,610
Big Lake $615 10,671 47 $62,324
cities
New Ulm $610 13,583 315 $50,254
Faribault $570 23,700 226 $48,220
• West St. Paul Household Albert Lea $540 17,899 287 $40,127
Income is 5% below the Sauk Rapids $529 13,406 148 $48,410
average of these cities Brainard $505 13,671 295 $30,975
Worthington $469 13,208 241 $47,467
• West St. Paul LGA Austin $421 25,111 317 $42,268
received is 70% below Hibbing $420 16,316 496 $43,831
the average received by St. Peter $396 11,784 253 $55,280
these cities
Average $677 16,221 188 $50,056
• If the increase in State
Highway 952A LGA West St. Paul $658 20,222 58 $47,710
funding is received,
West St. Paul LGA would •The 4 cities most comparable to West St.Paul In household income and prop-
still be 45% below the erty wealth(Cloquet,Willmar,Winona and Hutchinson)receive almost 4 times
average received by the LGA/capita than West St. Paul
these cities
Resolution in Support of West St. Paul State Funding Request
Sample Resolution
Whereas, between 2008-2010 there were 430 Crashes on the 2.5 mile State Highway 952A
also known as Robert Street)corridor in West St. Paul with 150 injury and 2 fatal crashes, and
Whereas, between 2006-2014 there were over 1,100 crashes on this corridor of which 9 were
serious injury crashes and 3 resulted in fatalities,and
Whereas, according to the Minnesota Department of Transportation this corridor has been
consistently regarded as a high crash corridor, and
Whereas, due to the lack of leadership on the part of the State of Minnesota,the City of West
St. Paul took on lead project management responsibilities in order to initiate a state
reconstruction project for Sate Highway 952A, and
Whereas, by the City of West St. Paul taking on this burden of project management on behalf of
the State the cost to West St. Paul is currently projected at$26.699 million with the total local
project cost share at$29.9 Million (65%of total project)while the cost burden borne by the
State is$8,132,000(18%of total project)to reconstruct this state highway,and
Whereas, MNDOT has provided data which shows similar state highway projects typically result
in a much lesser local cost share in the range of 16%of total project cost,and
Whereas,the difference between the Local Cost Share Burden on State Highway 952A and the
expected local cost share on similar projects is$22 Million, and
Whereas, the resulting debt incurred by the City of West St. Paul as a result of moving this
State Highway project to completion is projected at up to$1,900,761 annually resulting in a
significant tax burden to local property tax payers for the next seventeen years, and
Whereas, there is substantial precedent for the State of Minnesota providing annual funding
contributions to Cities which have faced even lesser cost burdens from State Highway and
similar projects,and
Whereas,the community of West St. Paul is one of constrained property tax base, as such the
disproportionate financial burden of this State Highway project is particularly burdensome
upon City fiscal health and individual tax payers, and
Whereas, on an individual impact level,the excessive local debt incurred will result in a
significant tax burden for every West St. Paul resident for the next seventeen years, and
Whereas, alternatively,the State of Minnesota receives over$20 million annually in sales tax
and commercial property tax revenue from the businesses along the State Highway 952A
corridor, and
Whereas, redevelopment of commercial property along State Highway 952A is an additional
burden taken on by the City of West St. Paul from which every$15 million in new commercial
value creation is projected to increase State of Minnesota Sales Tax and Property Tax revenues
by$1 million per year,and
Whereas,the City of West St. Paul request for funding relief from the State of Minnesota for
reconstructing a State Highway is abundantly reasonable, responsible and necessary, and
Whereas, a review of the sales tax transfer program of the state of Minnesota known as Local
Government Aid (LGA) reveals that similarly situated communities throughout the State receive
significantly greater LGA/capita on average than does West St. Paul, and
Whereas, even with an increase in annual LGA or similar funding from the State of Minnesota in
reimbursement from the State to the City of West St. Paul for taking on the burden of
reconstruction of State Highway 952A in the amount of$1 million annually similarly situated
cities throughout the State would continue to receive significantly more LGA per capita on
average than would the City of West St. Paul, in spite of many having greater property wealth
Now Therefore, Be it Resolved by that it
hereby agrees with the City of West St. Paul that the burden placed on the community is an
undue burden, particularly given that the burden results from taking on the reconstruction of a
Highway that is the responsibility of the State and not Local Government, and
Be it further resolved by that it
supports the request for funding reimbursement to the City of West St. Paul from whatever
state source of funds may be appropriate and available and we further urge the State of
Minnesota to take responsibility to correct this funding burden
�o3FARixt, City of Farmington
430 Third Street
Farmington, Minnesota
\D. 651.280.6800 -Fax 651.280.6899
•A 1,1100141bwww.ci.farmington.mn.us
TO: Mayor, Councilmembers and City Administrator
FROM: David McKnight, City Administrator
SUBJECT: City Council Roundtable
DATE: August 14, 2017