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HomeMy WebLinkAbout11.12.19 Work Session Packet CITY OF Meeting Location: FARMI NGTON Farmington City Hall .1***` 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA November 12, 2019 6:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Final Review 2020 Budgets (b) 2020-2024 Capital I mprovement Plan (c) Boards/Commissions Budget Discussion (d) Ladder Truck Financing (e) Employee Recognition Program-Police (f) Water Board Options 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Final Review 2020 Budgets DATE: November 12, 2019 INTRODUCTION The city council has been working on the draft 2020 city budgets since July of this year. City staff wanted to take this work session to review the General Fund, Special Revenue Funds, Capital Projects Funds, and Enterprise Funds Budgets before you consider them for final approval at the December 2, 2019 city council meeting. DISCUSSION General Fund At the September 3, 2019 city council meeting,the city council approved no levy increase for 2020. 2019 Budget 2020 Increase Preliminary (Decrease) Budget Revenues $3,199,486 $3,569,283 11.56% Expenditures 13,007,794 13,853,685 6.50 Fiscal Disparities 2,225,003 2,294,024 3.10 General Fund Levy 7,583,305 7,990,378 5.37 Debt Levy 3,212,460 2,805,387 (12.67) Net Tax Levy $10,795,765 $10,795,765 0.00% The city is hosting the Dakota Broadband (DBB) Executive Director. As part of the interchange agreement, all of the human resource costs for the director are paid for by the city and the city is reimbursed by the D BB. The 2020 preliminary budget reflects the increase to revenues and expenses for those costs which net zero. As a member of the DBB,the city incurs programming costs. Those costs were previously accounted for in the EDA budget. For 2020 they have been moved to the General Fund. Since the approval of the 2020 preliminary budget,the city has received the final numbers for fiscal disparities.There is an increase of$53,211 over the budgeted amount.The budget has been updated to include an additional transfer of$15,000 to trail maintenance, $27,371 to building maintenance, and the remainder in the general fund to offset the DBB programming expenses. The 2020 preliminary General Fund budget includes funding for a Deputy Police Chief starting July 1, 2020. The city council has given preliminary approval to start this hiring process, and subsequent backfilling of to be vacant promoted positions, earlier at the request of the city administrator. Special Revenue Funds EDA-The EDA expenses have been reduced with the DBB programming costs moved to the General Fund. Ice Arena Fund-The Ice Arena Fund's budget has been similar year-to-year. The conservative budget has the arena producing a net zero at the end of the year.There is a proposed increase of fees included in the budget. Any increased usage or reduction in spending will result in better financial performance. The Transfers I n includes a $40,000 transfer from the General Fund to the EDA and a $75,000 from liquor store proceeds to the Park Improvement Fund. Capital Projects Funds Cable Communications Fund -The Cable Communications Fund receives funding quarterly from franchise fees and PEG fees. At the July 8, 2019 work session, city council discussed using part of the franchise fees to fund a one-time project.That has not been included in the budget as the city council has asked city staff to perform some additional research. This work is underway. Fire Capital Projects Fund- Engine 11 was purchased in 2019.There is no additional funding planned for 2020. General Capital Equipment Fund-The city maintains the General Capital Equipment Fund for purchases of capital equipment using dollars from the General Fund;such as: police equipment,fire equipment, and vehicles benefitting the General Fund.This fund includes transfers in from the General Fund for police equipment($51,000),fire equipment($91,545), and the surplus ($600,000)from the 2018 budget. Maintenance Fund - Large scale maintenance and replacement costs are budgeted in the maintenance fund for streets,trails, and facilities based on the respective capital improvement plans. Costs for emerald ash borer(EAB) and township road maintenance are also budgeted in this fund.Transfers in includes$113,978 for building maintenance, $10,000 for EAB, and $3,000 for township road maintenance. The 2020 budget also includes transfers in from the General Fund for pavement preservation of streets and trails (e.g. seal coating,fog sealing, and crack sealing) of$517,033 and$125,000 respectively. Enterprise Funds Liquor Stores Fund-The two liquor stores are estimated to produce a profit of$302,808 after transfers out.The transfers for the liquor store fund include$61,452 in administrative transfers that cover payroll, human resources,finance and administration.The liquor store also transfers$75,000 into the Park Improvement Fund. The Liquor Stores Fund includes an increase of administrative support staff by 0.5 FTE.The position is currently 1.0 FTE split between Finance and the liquor store.The 0.5 FTE position would be replaced in Finance. Street Lighting Fund-The city owns and maintains street lights primarily in the downtown and the Vermillion River Crossings.The remaining street lights are owned and operated by the electric utility companies (Xcel Energy and Dakota Electric).The city is charged a rate per light to cover their operating costs. Expenses associated with all lights are budgeted in the Street Light fund with revenues generated from a quarterly fee paid with the other utilities. Capital improvement plans have been created for the sanitary sewer, solid waste, storm water, and water funds. Considering the long-term plans and historical operating expenses, user rates and development fees are determined to provide adequate funding while building reserve for large capital expenditures. Those plans will be discussed at the November 12, 2019 work session. A copy of the summary budgets and operating transfers have been included for your review. BUDGET IMPACT This establishes the 2020 budgets. ACTION REQUESTED Discuss the proposed final tax levy city budgets.Ask any questions that are remaining of the proposed budgets and provide staff with direction on any needed revisions. ATTACHMENTS: Type Description D Backup Material General Fund Budget Summary D Backup Material 2020 Operating Transfers D Backup Material Special Revenue Funds Budget Summary D Backup Material Capital Projects Funds Budget Summary D Backup Material Liquor Stores Fund Summary Budget D Backup Material Enterprise Funds Budget Summary City of Farmington Budget and Tax Levy 2019 Budget,2020 Proposed and 2021 Proposed 2019 2020 Budget% 2021 Budget Company Budget Proposed Change Proposed Change% Non-Property Tax Revenues Licenses and Permits 396,410 472,945 19.31% 462,480 (2.21)% Intergovernmental Revenue 892,265 922,294 3.37% 903,775 (2.01)% Charge for Service 558,880 561,183 0.41% 568,867 1.37%' Fines and Forfeitures 42,000 49,000 16.67% 50,000 2.04% Investment Income 21,900 38,800 77.17% 20,600 (46.91)%' Miscellaneous 43,775 54,580 24.68% 55,200 1.14% Dakota Broadband Human Resource 162,911 172,054 5.61% Transfers In 1,244,256 1,307,570 5.09% 1,359,896 4.00%' Total Revenues 3,199,486 3,569,283 11.56% 3,592,872 0.66% Expenditures Administration 881,322 907,162 2.93% 1,020,599 12.50% Human Resource 336,447 349,226 3.80% 361,870 3.62%' Dakota Broadband 24,489 24,989 2.04% Dakota Broadband Human Resource 162,911 172,054 5.61% Finance and Risk Mgmt 739,736 781,389 5.63% 832,609 6.55% Police 4,480,057 4,677,813 4.41% 5,127,590 9.62%' Fire 1,267,885 1445,410 14.00% 1,602,687 10.88%' Community Development 908,890 1,018,418 12.05% 1,062,026 4.28%' Engineering 747,170 794,635 6.35% 836,023 5.21% Municipal Services 1,373,556 1,439,078 4.77% 1,515,144' 5.29%' Parks and Recreation 1,231,593 1,278,576 3.81% 1,349,770 5.57%' Transfers Out 1,041,138 974,578 (6.39)% 1,078,292 10.64% Total Expenditures 13,007,794 13,853,685 6.50% 14,983,653 8.16% Revenues Over(Under)Expenditures (9,808,308) (10,284,402) 4.85% (11,390,781) 10.76%', Fiscal Disparities 2,225,003 2,294,024 3.10% 2,235,003 (2.57)% General Fund Levy 7,583,305 7,990,378 5.37% 9,155,778' 14.59%' Debt Levy Bonds 2,550,783 2,222,950 (12.85)% 2,176,827 (2.07)%''. 2005C Loan Repay-Storm Water Tr Adv 166,000 166,000 0.00% 275,000 65.66% 2010A Loan Repay-Storm Water Tr Adv 495,677 400,000 (19.30)% 292,253! (26.94)%' 2010D Loan Repay-Storm Water Tr Adv 240,000 16,437 (93.15)% 0 (100.00)% Total Debt Levy 3,452,460 2,805,387 (18.74)%' 2,744,080' (2.19)%', Use of Fund Balance to Lower Debt Levy (240,000) (100.00)%, Net Debt Levy 3,212,460 2,805,387' (12.67)% 2,744,080 (2.19)%; Farmington Net Tax Levy 10,795,765 10,795,765 0.00%, 11,899,858! 10.23%', o m 8 n r a3n "tee A E. N N� rn i r m v, — cp U vC a m 0 h (7U c1WN - z • LL 6 ?d L W 7 U o > - LL m as 97 E i SI � U a ma N m m m z � a i ry m n Ec• Z W —LL y z F z LL H o a o Q 0 _W 0 w O D8 m N n n sQa a U U po m U` U' ❑ v cc ❑ a` E -E E E E = m ~ 8 s n n 2 m n m ¢ C U _ _ •"2 _ _ _ 2 \ / { \ \ i\ \ / } \ / \ } \ } { { { \ f 4-, ',T, { - a - GII 1 11 3 \ / / \ / / a \ / a / \ {/ I k \ \ \ }j \ \ \ } \ \ ,\\ § i f f\ } ff f- ! I \ \_ _ ) ) $ § A4A0 ? ) . _ . )§ ? - 4 11 }( - 11 - ) ) - - -) - ) / ) !))§ / §)/ / ! ! \ § )) § k 2 / k § t, e \ §) ! \Ogn } § \ \ ) OL 0 z N M > j 2 A 20 A O z � 2 S m 5 ry 5 wFa E v E wti¢ ¢ ice¢ 76,1 U E 7,1 E E E U U U Special Revenue Funds Budget Summary 2018 Actual,2019 Budget, 2020 Proposed and 2021 Proposed Company 2018 2019 2020 2021 Actual Budget Proposed Proposed Revenues EDA(2000) 25,996 2,300 2,700 1,700 TIF-Trident(2054) 39,463 Police Donations&Forfeitures(2100) 7,882 5,100 1,300 1,300 Park Improvement Fund(2300) 185,976 27,800 36,745 35,503 Ice Arena(2500) 358,355 356,600 368,200 373,000 Total Revenues 617,673 391,800 408,945 411,503 Expenditures EDA(2000) 65,488 51,427 38,730 38,283 TIF-Trident(2054) 37,542 2,850 2,850' 2,850 Police Donations&Forfeitures(2100) 9,931 6,500 3,100 3,200 Park Improvement Fund(2300) 65,365 307,500 39,000 7,500 Ice Arena(2500) 364,754 352,744 368,200 378,132 Total Expenditures 543,079 721,021 451,880 429,965 Transfers Transfers In 117,850 127,850 115,000 116,085 Transfers Out (22,850) (2,850) Total Transfers 95,000 125,000 115,000 116,085 Change in Fund Balance 169,593 (204,221) 72,065 97,623 Capital Projects Funds Summary 2018 Actual,2019 Budget, 2020 Proposed and 2021 Proposed Company 2018 2019 2020 2021 Actual Budget Proposed Proposed Revenues Sanitary Sewer Trunk(3900) 90,347 33,040 33,540 32,000 Cable Communications Fund(4000) 156,983 174,900 146,500 143,900 Road and Bridge/Street Reconstruction Fund(4100) 12,373 9,148 1,700 1,000 Fire Capital Projects Fund(4300) 55,256' 2,900 Storm Water Trunk(4400) 354,087 7,203 8,600 5,300 RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 19,020 21,800 18,900 18,500 Private Capital Projects(4600) 7,882 22,200 4,300 2,600 Permanent Imp Revolving Fund(4900) 2,462 1,000 1,400 900 Gen'I Cap Equip Fund(5600) 11,769 2,300 2,500 1,500 Maintenance Fund(5700) 723,679 13,500 13,600 8,300 Total Revenues 1,433,858 287,991 231,040 214,000, Expenditures Sanitary Sewer Trunk 163,991 0 Cable Communications Fund 93,832 115,000 126,000 136,000' Road and Bridge/Street Reconstruction Fund(4100) 23 0 Fire Capital Projects Fund(4300) 600,773 870,000 Storm Water Trunk Fund 229,717 0 RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 23,315 14,100 9,600 9,600 Private Capital Projects 338 20,000 Permanent Imp Revolving Fund 0 0 Gen'I Cap Equip Fund(5600) 306,071 221,786 728,256 848,200' Maintenance Fund 484,951 3,829,732 1,084,607 747,607', Total Expenditures 1,903,010 5,070,618 1,948,463 1,741,407 Transfers Transfers In 1,753,615 5,048,217 1,510,893 1,578,338 Transfers Out (289,852) 0 Total Transfers 1,463,763 5,048,217 1,510,893 1,578,338 Change in Fund Balance 994,610 265,590 (206,530) 50,931 Liquor Store Funds Budget Summary 2018 Actual,2019 Budget, 2020 Proposed and 2021 Proposed Company 2018 2019 2020 2021 Actual Budget Proposed Proposed Revenues Downtown(6110) 2,465,966 2,338,989 2,348,258 2,494,001 Pilot Knob(6115) 2,805,988 2,685,506 2,706,462 2,845,559' Total Revenues 5,271,954 5,024,495 5,054,720 5,339,560 Expenditures Downton(6110) 2,355,796 2,186,773 2,245,843 2,267,467 Pilot Knob(6115) 2,534,515 2,351,316'' 2,369,617 2,338,266' Total Expenditures 4,890,311 4,538,089 4,615,460 4,605,733 Transfers Transfers In Transfers Out (194,377) (134,088) (136,452) (138,912) Total Transfers (194,377) (134,088) (136,452) (138,912) Change in Fund Balance 187,266 352,318 302,808 594,915 Enterprise Funds Budget Summary 2018 Actual,2019 Budget, 2020 Proposed and 2021 Proposed Company 2018 2019 2020 2021 Actual Budget Proposed Proposed Revenues Liquor Stores,Net of Cost of Goods Sold(6100:6115) 1,347,986 1,506,817 1,537,042 1,821,882 Sewer Operations(6200:6205) 2,082,379 2,265,855 2,326,614 2,452,892 Solid Waste(6300:6302) 2,127,249 2,449,569' 2,449,853 2,575,193, Storm Water(6400:6405) 990,945 1,176,556 1,242,633 1,308,658 Water(6500:6508) 1,972,156 2,274,224 2,407,694 2,505,200 Streetlights(6600:6602) 228,118 224,600' 224,900 224,600 Total Revenues 8,748,833 9,897,621 10,188,736 10,888,425 Expenditures Liquor Stores 966,343 1,020,411 1,097,782 1,088,055 Sewer Operations 1,932,777 2,498,848 2,573,895 2,851,823 Solid Waste 2,101,344 2,361,061 2,312,989 2,852,897 Storm Water 533,464 678,305 1,036,854 819,040 Water 1,247,668 3,004,427' 7,246,319 1,385,648 Streetlights 180,254 216,500' 221,500 221,500 Total Expenditures 6,961,851 9,779,552 14,489,339 9,218,963 Transfers Transfers In 296,021 69,520 70,201 73,009 Transfers Out (1,406,901) (3,578,610) (1,548,273) (1,605,065) Total Transfers (1,110,880) (3,509,090) (1,478,072) (1,532,056) Change in Fund Balance 676,102 (3,391,021) (5,778,675)', 137,406 CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: 2020-2024 Capital Improvement Plan DATE: November 12, 2019 INTRODUCTION The city council has spent time reviewing all of the budgets and related capital improvement plans over the course of the past five months. This information brings all of the capital improvement related items into one document. DISCUSSION The 2020-2024 Capital Improvement Plan includes projects and equipment that the city is planning over the next five years. While the plan covers the years 2020 through 2024,the first year of the plan is always the most important. All of these plans listed in 2020 are included in the draft budgets for next year that you have been reviewing. The plan includes budgets in a number of areas that are detailed below: Park Improvement Fund This plan covers the development and redevelopment of our park system. The major funding source for this fund is the transfer of dollars from liquor store profits each year. I n 2020,this plan calls for work in the Prairie Waterway, Rambling River Park and Westview Park. Equipment Replacement-General Fund The plan covers the vehicle needs of the General Fund. As a reminder,this plan has been "placed on hold"for a number of years with 2020 being the targeted year to start to catch up on our fleet replacement. The CI P includes $657,160 in purchases with over half of the vehicles in the Parks Department. Individual purchases by department for 2020 are included on the CI P spreadsheet. Equipment Replacement-Utility Funds This plan covers the vehicle needs of the utility funds including water, sewer, stormwater, solid waste and fleet. There are$394,850 in proposed purchases for 2020. As you will note on the CI P spreadsheet,we continue our replacement of snow/dump truck vehicles with the stormwater fund making the purchase in 2020. Other vehicles proposed for 2020 are listed on the CI P spreadsheet. Street Reconstruction Fund This plan accounts for the street reconstruction and related projects in the city. You will see in 2020 the two projects that are scheduled are the Northeast Farmington Study and the turn lane at 209th Street and Highway 3. There is a chance that the Highway 3 trail project included in the plan in 2021 will occur in 2020 along with the turn lane projects that will occur in Farmington and Empire next summer. Please note that the next reconstruction projects are scheduled for 2022 and will include Spruce Street, Division Street and the Willow/Linden area. Street Maintenance Fund This plan covers the street maintenance projects that occur each year. This work includes crack sealing, seal coating and mill and overlay projects. Staff has discussed with the city council the emphasis on mill and overlay projects in the next few years as opposed to seal coating. I n 2020 there is$850,000 earmarked for mill and overlay projects. City staff is still determining which streets will receive the mill and overlay work in 2020. Trail Maintenance This plan is responsible for the work related to trail maintenance and replacement in the city. I n 2020, most of the dollars in this plan will go to work in the Mystic Meadows area. Staff is still struggling to find additional revenue for this plan over the next five years. Building Maintenance Fund This plan covers the maintenance work that is needed for all city facilities. The projects proposed for 2020 are based off of the study completed by Wold a few years ago. I have added the door expansion project on the list for Fire Station#1 and guessed at a potential cost. The other projects proposed for 2020 includes work at Fire Station#1 and the Rambling River Center. We have intentionally let the fund balance of this fund grow over the remaining years of the plan as we will start to address some larger projects in the next few years. Fire Equipment Fund This plan covers some of the equipment needed by the fire department to perform their work. A few years ago we started to account for this equipment in a separate plan so we could plan for its funding. You will see that 2020 and the other years of the plan include basic fire equipment. Police Equipment Fund This plan covers some of the equipment needed by the police department to perform their work. A few years ago we started to account for this equipment in a separate plan so we could plan for its funding. You will see that 2020 and the other years of the plan include basic police equipment Water Fund This fund is responsible for the water system in Farmington with the Water Board having ultimate authority of this fund. You will see in 2020 the new water tower project is included in the CI P. This project will take longer than one year, but at this point the entire cost for the project in listed in 2020. The CI P also includes well maintenance and well sealing. Stormwater Fund This fund is responsible for the extensive stormwater management system in place throughout the city. The 2020 CI P includes dollars for pond capacity improvements (dredging),vegetation management around stormwater ponds and trail and dollars related to fleet replacement(snow/dump truck). Sanitary Sewer Fund This plan covers the sanitary sewer system in place throughout the city. The 2020 CI P includes funding for sanitary sewer lining projects and fleet replacement(two 4 X 4 pickups). Solid Waste Fund This fund is responsible for the solid waste operations. The 2020 CI P does not include any capital improvements. BUDGET IMPACT The cost of the 2020 CI P projects are all incorporated into the draft 2020 budgets that you will consider in December 2019. ACTION REQUESTED Ask any questions you may have of the 2020-2024 Capital I mprovement Plan. The plan will be placed on the November 18, 2019 city council agenda for approval. ATTACHMENTS: Type Description D Cover Memo 2020-2024 CI P 11116. CAPITAL IMPROVEMENT PROGRAM PARK IMPROVEMENT FUND PROJECTS 2020 2021 2022 2023 2024 REPLACE ROOF AT PRAIRE WATERWAY $3,000 REPLACE OUTFIELD FENCE ON FIELD#1 AT RRP $30,000 _ BASKETBALL COURT SURFACE IMPROVEMENTS WESTVIEW $6,000 PARK MASTER PLAN FOR FLAGSTAFF MEADOW PARK $7,500 REPLACE OUTFIELD FENCE ON FIELD#2 AT RRP J $20,000 INSTALL PARK EQUIPMENT AT FLAGSTAFF MEADOW PARK $100,000 REPLACE BACKSTOP ON FIELD#2 AT RRP $40,000 RESURFACE BASKETBALL COURT AT PINE KNOLL PARK $5,000 INSTALL PARK EQUIPMENT AT MEWDOWVIEW PARK $100,000 REPLACE OUTFIELD FENCE ON FIELD#3 AT RRP $25,000 GRADING AND SITE WORK AT JIM BELL PARK $250,000 PARK IMPROVEMENT FUND TOTAL $39,000 $7,500 $120,000 $145,000 $275,000 REVENUES BEGINNING FUND BALANCE I $292,582 $361,827 $462,730 $451,133 $414,693 TRANSFERS IN/LIQUOR STORE $75,000 $75,000 $75,000 $75,000 $75,000 LOCAL GOVERNMENT AID $0 $0 $0 $0 $0 PARK DEDICATION FEES $20,000 $20,000 $20,000 $20,000 $20,000 OTHER FUNDS $5,000 $5,000 $5,000 $5,000 $5,000 MISCELLANEOUS INCOME $8,245 $8,403 $8,403 $8,560 $0 TOTAL REVENUE $108,245 $108,403 $108,403 $108,560 $100,000 EXPENDITURES PROJECTS $39,000 $7,500 $120,000 $145,000 $275,000 TOTAL EXPENDITURES $39,000 $7,500 $120,000 $145,000 $275,000 ENDING FUND BALANCE $361,827 $462,730 $451,133 $414,693 $239,693 11/5/2019 H:\2020 Budget\2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM EQUIPMENT REPLACEMENT FUND-GENERAL FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 GENERAL FUND BUILDING INSPECTIONS $32,860 $0 $0 $34,500 $0 ENGINEERING $37,100 $34,880 $0 $37,950 $0 POLICE $92,180 $143,989 $163,520 $118,785 $105,138 FIRE $37,100 $1,258,950 $61,600 $126,500 $436,600 MUNICIPAL SERVICES $89,040 $264,870 $299,040 $17,250 $153,400 PARKS $368,880 $207,100 $133,280 $56,350 $123,900 NATURAL RESOURCES $0 $0 $39,200 $0 $0 POLICE EQUIPMENT $0 $0 $0 $0 $0 FIRE EQUIPMENT $0 $0 $0 $0 $0 EQUIPMENT REPLACEMENT FUND $657,160 $1,909,789 $696,640 $391,335 $819,038 REVENUES BEGINNING FUND BALANCE $748,605 $91,445 $656 $295,616 $596,281 TAX LEVY $0 $480,000 $542,000 $542,000 $630,000 LOCAL GOVERNMENT AID $0 $0 $299,600 $0 $0 SALE OF BONDS $0 $1,200,000 $0 $0 $0 OTHER FUNDS $0 $0 $150,000 $150,000 $150,000 MISCELLANEOUS INCOME $0 $139,000 $0 $0 $0 TOTAL REVENUE $0 $1,819,000 $991,600 $692,000 $780,000 ...........-_-- EXPENDITURES EQUIPMENT $657,160 $1,909,789 $696,640 $391,335 $819,038 TOTAL EXPENDITURES $657,160 $1,909,789 $696,640 $391,335 $819,038 ENDING FUND BALANCE $91,445 $656 $295,616 $596,281 $557,243 2020 PURCHASES CD-4 X 4 TRUCK $32,860 ENG-4 X 4 TRUCK $37,100 FIRE-BRUSH TRUCK $37,100 MUNICIPAL SERVICES-ONE TON TRUCK $89,040 PARKS-ONE TON TRUCK $57,240 PARKS-4X4 TRUCK $34,980 PARKS-4X4 TRUCK $37,100 PARKS-JD 5420 $148,400 PARKS-MOWER $12,720 PARKS-SKIDSTER $28,620 11/5/2019 2020 CIP Approve) Document PARKS-DURANGO $33,920 PARKS-TRAILER $15,900 POLICE-IMPALA $42,360 POLICE-INT SUV $49,820 TOTAL $657,160 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM EQUIPMENT REPLACEMENT FUND-UTILITY FUNDS 2020-2024 PROJECTS 2020 2021 2022 2023 2024 FUND WATER $0 $0 $299,600 $0 $0 SANITARY SEWER $135,150 $430,550 $0 $241,500 $230,100 STORMWATER $222,600 $0 $0 $227,700 $247,800 SOLID WASTE $0 $465,430 $0 $0 $387,040 FLEET $37,100 $0 $47,600 $0 $0 EQUIPMENT REPLACEMENT FUND $394,850 $895,980 $347,200 $469,200 $864,940 REVENUES BEGINNING FUND BALANCE $0 $0 $0 $0 $0 WATER FEES $0 $0 $299,600 $0 $0 SANITARY SEWER FEES $135,150 $430,550 $0 $241,500 $230,100 STORMWATER FEES $222,600 $0 $0 $227,700 $247,800 SOLID WASTE FEES $0 $465,430 $0 $0 $387,040 FLEET TRANSFERS $37,100 $0 $47,600 $0 $0 TOTAL REVENUE $394,850 $895,980 $347,200 $469,200 $864,940 EXPENDITURES EQUIPMENT $394,850 $895,980 $347,200 $469,200 $864,940 TOTAL EXPENDITURES $394,850 $895,980 $347,200 $469,200 $864,940 ENDING FUND BALANCE $0 $0 $0 $0 $0 2020 PURCHASES ONE-TON CRANE $55,650 4 X 4 TRUCK $37,100 4 X 4 TRUCK $42,400 DUMP TRUCK $222,600 4 X 4 TRUCK $37,100 TOTAL $394,850 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM STREET RECONSTRUCTION FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 NE FARMINGTON STUDY $25,000 TURN LANE AT 209TH AND HIGHWAY 3 $565,000 HIGHWAY 3 TRAIL THROUGH LPP $320,000 TURN LANE AT 225TH AND HIGHWAY 3 $158,664 SPRUCE STREET(RR TRACKS TO DENMARK) $2,189,867 DIVISION STREET $1,013,134 WILLOW/LINDEN STREETS $2,627,587 PINE STREET $1,967,833 FIRST/OAK STREETS $3,995,670 CR 66/HIGHWAY 3 TRAFFIC CONTROL $229,307 BACKAGE ROAD-CARVER LANE $896,844 STREET RECONSTRUCTION FUND $590,000 $320,000 $5,989,252 $1,967,833 $5,121,821 REVENUES BEGINNING FUND BALANCE $109,391 $69,391 $59,391 $73,287 $75,963 TRANSFERS IN/TAX LEVY $0 $0 $435,000 $700,000 $653,000 LOCAL GOVERNMENT AID $0 $0 $0 $0 $0 SALE OF BONDS $0 $0 $1,600,000 $260,000 $925,000 WATER FUND CONTRIBUTION $0 $0 $1,146,105 $390,021 $1,053,685 STORM WATER FUND CONTRIBUTION $0 $0 $601,274 $283,652 $232,874 SANITARY SEWER FUND CONTRIBUTION $0 $0 $720,769 $336,836 $760,605 MSA CONTRIBUTION $45,000 $0 $1,500,000 $0 $1,500,000 MISCELLANEOUS INCOME $505,000 $310,000 $0 $0 $0 TOTAL REVENUE $550,000 $310,000 $6,003,148 $1,970,509 $5,125,164 EXPENDITURES PROJECTS $590,000 $320,000 $5,989,252 $1,967,833 $5,121,821 TOTAL EXPENDITURES $590,000 $320,000 $5,989,252 $1,967,833 $5,121,821 ENDING FUND BALANCE $69,391 $59,391 $73,287 $75,963 $79,306 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM STREET MAINTENANCE FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 CRACK SEALING $34,320 $35,640 $36,960 $38,280 $39,600 SEAL COATING $75,000 $156,600 $162,400 $168,200 $174,000 MILL AND OVERLAY $850,000 $350,000 $380,000 $410,000 $440,000 STREET MAINTENANCE FUND $959,320 $542,240 $579,360 $616,480 $653,600 REVENUES BEGINNING FUND BALANCE $274,106 $282,184 $413,152 $562,067 $618,862 TRANSFERS IN/TAX LEVY $400,000 $500,000 $575,000 $500,000 $525,000 LOCAL GOVERNMENT AID $117,033 $81,208 $61,275 $81,275 $41,275 SALE OF BONDS _ $0 $0 $0 $0 $0 OTHER FUNDS $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $450,365 $92,000 $92,000 $92,000 $92,000 TOTAL REVENUE $967,398 $673,208 $728,275 $673,275 $658,275 EXPENDITURES PROJECTS $959,320 $542,240 $579,360 $616,480 $653,600 TOTAL EXPENDITURES $959,320 $542,240 $579,360 $616,480 $653,600 ENDING FUND BALANCE $282,184 $413,152 $562,067 $618,862 $623,537 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM TRAIL MAINTENANCE FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 CRACK SEALING $7,280 $7,560 $7,840 $8,120 $8,400 FOG SEALING $15,600 $16,200 $16,800 $17,400 $18,000 PAVEMENT REPLACEMENT $90,000 $100,000 $100,000 $150,000 $150,000 RECONSTRUCTION $0 $0 $0 $0 $0 TRAIL MAINTENANCE FUND $112,880 $123,760 $124,640 $175,520 $176,400 REVENUES BEGINNING FUND BALANCE $35,081 $47,201 $43,441 $58,801 $43,281 TRANSFERS IN/TAX LEVY $49,673 $90,000 $90,000 $100,000 $120,000 LOCAL GOVERNMENT AID $75,327 $30,000 $50,000 $60,000 $50,000 SALE OF BONDS $0 $0 $0 $0 $0 OTHER FUNDS $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $0 $0 $0 $0 $0 TOTAL REVENUE $125,000 $120,000 $140,000 $160,000 $170,000 EXPENDITURES PROJECTS $112,880 $123,760 $124,640 $175,520 $176,400 TOTAL EXPENDITURES $112,880 $123,760 $124,640 $175,520 $176,400 ENDING FUND BALANCE $47,201 $43,441 $58,801 $43,281 $36,881 2020 PAVEMENT REPLACEMENT PROJECTS MYSTIC MEADOWS TRAIL WORK $70,000 MISC.TRAIL WORK $20,000 TOTAL $90,000 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM BUILDINGxxmmnswxmcs�umo 2020a024 PROJECTS 2020 2021 2022 2023 2024 CITY HALL FIRE STATION#1 $103,000 FIRE STATION SCHMITZ-MAKI ARENA _ FIRST STREET MAINTENANCE FACILITY POLICE DEPARTMENT RAMBLING RIVER cENTER $48,000 pxoFssanwxLxss/sTAwcc ��s7s FUTURE SALT sxco $125,000 _-_- FUTUREpUc�3TxnOw $200,000 BUILDING MAINTENANCE $158,575 $125,000 $200,000 $0 $0 | --7 | | REVENUES BEGINNING FUND uAu^mcs �1o�ozs $55,429 $198,387 $369'e94 $511,601---' TRANSFERS|w/T��� ��� g�� ��� $5,000 $5,000 LOCALsovsnwmsmrmn $86,607 $137,958 $166,607 $136,607 $186,607 SALE npaowos $0 $0 $0 $» $0 -__- OTHER FUNDS/LIQUOR STORE REVENUE $0 $125,000 $204000 $0 $0 MISCELLANEOUS|NCOx4c $0 $0 $0 $0 $0 TOTALnpvcmuc $113,978 $267,958 $371,607 $141,607 $191,607 EXPENDITURES PROJECTS $zzs'VOO �2OO�OO $0 $0 TmTxLsxpcwonunso �zs�sys $125,000 $200,000 $0 $0 ENDING FUND BALANCE $55'429 $198,387 $3e9,e*4 *511,601 $703.208 2020 PROJECTS FIRE STATION#1-AUTOMATIC DOOR OPENERS $20,000 FIRE STATION#1-REPLACE 17 INTERIOR DOORS(ADA) $33,000 FIRE STATION#1-DOOR EXPANSION FOR LADDER TRUCK $50,000 '--' RRC-REPLACE 8 INTERIOR DOORS(ADA) $16,000 RRC-REPLACE FRONT DESK COUNTER(ADA) $5,000 RRC-RE PLACE LEAKING WATER MAIN IN GARAGE) $27.000 PROFESSIONAL ASSISTANCE $7,575 TOTAL $158'575 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM FIRE EQUIPMENT FUND 2020-2024 PROJ ECTS 2020 2021 2022 2023 2024 [ SCBA $64,800 $0 $0 $0 $0 PORTABLE RADIOS $0 $45,000 $45,000 $45,000 $45,000 RADIO BATTERIES $6,000 $0 $8,000 $0 $0 MOBILE RADIOS $0 $0 $9,750 $9,750 $9,750 EXTRICATION TOOLS $0 $0 $0 $40,000 $0 THERMAL IMAGING CAMERAS $0 $7,500 $5,000 $0 $7,500 RAD 57 CO MONITOR $0 $0 $7,000 $0 $8,000 HOSE $7,500 $11,000 $7,500 $11,000 $9,000 GAS MONITOR $0 $8,000 $0 $9,000 $0 TOTAL $78,300 $71,500 $82,250 $114,750 $79,250 REVENUES BEGINNING FUND BALANCE I $251 $13,496 $33,541 $42,836 $39,631 TRANSFERS IN/TAX LEVY $91,545 $91,545 $91,545 fl_ $111,545 $111,545 LOCAL GOVERNMENT AID $0 $0 $0 $0 $0 SALE OF BONDS $0 $0 $0 $0 $0 OTHER FUNDS $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $0 $0 $0 $0 $0 TOTAL REVENUE $91,545 $91,545 $91,545 $111,545 $111,545 EXPENDITURES EQUIPMENT $78,300 $71,500 $82,250 $114,750 $79,250 TOTAL EXPENDITURES $78,300 $71,500 $82,250 $114,750 $79,250 ENDING FUND BALANCE $13,496 $33,541 $42,836 $39,631 $71,926 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM POLICE EQUIPMENT FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 PORTABLE RADIOS $71,715 $52,851 $4,366 $0 $0 MOBILE RADIOS $0 $10,498 $71,710 $0 $0 BODY CAMERAS $13,452 $13,452 $13,452 $13,452 $13,452 SQUAD CAMERAS $2,268 $3,780 $5,292 $6,804 $7,560 POLICE EQUIPMENT FUND $87,435 $80,581 $94,820 $20,256 $21,012 REVENUES BEGINNING FUND BALANCE $88,610 $52,175 $22,594 $774 $35,518 TRANSFERS IN/TAX LEVY $51,000 $51,000 $51,000 $55,000 $30,725 LOCAL GOVERNMENT AID $0 $0 $0 $0 $0 SALE OF BONDS $0 $0 $0 $0 $0 OTHER FUNDS $0 $0 $22,000 $0 $0 MISCELLANEOUS INCOME $0 $0 $0 $0 $0 TOTAL REVENUE $51,000 $51,000 $73,000 $55,000 $30,725 EXPENDITURES EQUIPMENT } $87,435 $80,581 $94,820 $20,256 $21,012 TOTAL EXPENDITURES $87,435 $80,581 $94,820 $20,256 $21,012 ENDING FUND BALANCE $52,175 $22,594 $774 $35,518 $45,231 11/5/2019 2020 CIP Approve) Document CAPITAL IMPROVEMENT PROGRAM WATER FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 OPERATING EXPENSES $836,507 $853,237 $870,301 $887,707 $905,462 TRANSFERS OPERATING(PERSONNEL) $401,868 $417,943 $434,661 $452,047 $470,129 CAPITAL IMPROVEMENT PLAN $5,941,300 $87,200 $1,445,705 $390,021 $1,053,685 DEBT PAYMENTS $356,880 $356,880 $356,880 $356,880 $356,880 STREET RECONSTRUCTION FUND $7,536,555 $1,715,260 $3,107,547 $2,086,655 $2,786,156 REVENUES BEGINNING FUND BALANCE $3,853,856 $1,015,083 $1,411,626 $537,142 $811,131 ENTERPRISE SALES $1,996,568 $2,111,803 $2,233,063 $2,360,644 $2,494,859 SALE OF BONDS $2,460,405 $0 $0 $0 $0 TRUNK FUND CONTRIBUTIONS $240,809 $0 $0 $0 $0 WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 STORM WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 SANITARY SEWER FUND CONTRIBUTION $0 $0 $0 $0 $0 MSA CONTRIBUTION $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $0 $0 $0 $0 $0 TOTAL REVENUE $4,697,782 $2,111,803 $2,233,063 $2,360,644 $2,494,859 EXPENDITURES PROJECTS $7,536,555 $1,715,260 $3,107,547 $2,086,655 $2,786,156 TOTAL EXPENDITURES $7,536,555 $1,715,260 $3,107,547 $2,086,655 $2,786,156 ENDING FUND BALANCE $1,015,083 $1,411,626 $537,142 $811,131 $519,834 2020 PROJECTS WELL MAINTENANCE $84,800 SEAL AND ABANDON WELLS 1 AND 2 $26,500 NEW WATER TOWER $5,830,000 TOTAL $5,941,300 11/5/2019 2020 CIP Approve) Document CAPITAL IMPROVEMENT PROGRAM STORM WATER FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 OPERATING EXPENSES $324,285 $340,500 $357,525 $375,401 $394,171 TRANSFERS OPERATION(PERSONNEL) $381,439 $396,696 $412,564 $429,067 $446,229 CAPITAL IMPROVEMENTS $392,600 $175,000 $776,274 $536,352 $505,674 TRANSFER OUT(ADMIN) $381,439 $396,696 $412,564 $429,067 $446,229 STREET RECONSTRUCTION FUND $1,479,763 $1,308,892 $1,958,927 $1,769,887 $1,792,303 REVENUES BEGINNING FUND BALANCE $872,688 $795,899 $963,963 $554,596 $575,675 ENTERPRISE SALES $1,222,366 $1,290,924 $1,363,086 $1,439,033 $1,518,956 TRUNK FUND CONTRIBUTIONS $170,000 $175,000 $175,000 $340,000 $0 WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 STORM WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 SANITARY SEWER FUND CONTRIBUTION $0 $0 $0 $0 $0 MSA CONTRIBUTION $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $10,608 $11,032 $11,474 $11,933 $12,410 TOTAL REVENUE $1,402,974 $1,476,956 $1,549,560 $1,790,966 $1,531,366 EXPENDITURES PROJECTS $1,479,763 $1,308,892 $1,958,927 $1,769,887 $1,792,303 TOTAL EXPENDITURES $1,479,763 $1,308,892 $1,958,927 $1,769,887 $1,792,303 ENDING FUND BALANCE $795,899 $963,963 $554,596 $575,675 $314,738 2020 PROJECTS POND CAPACITY IMPROVEMENTS $150,000 VEGETATION MANAGEMENT $20,000 FLEET REPLACEMENT $222,600 TOTAL $392,600 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM SANITARY SEWER FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 OPERATING EXPENSES $188,130 $197,537 $207,414 $217,785 $228,674 TRANSFERS OPERATION(PERSONNEL) $302,041 $314,123 $326,688 $339,755 $353,345 (ACES FEES $1,390,877 $1,460,421 $1,533,442 $1,610,114 $1,690,620 TRANSFER OUT(CIP) $229,500 $580,550 $870,769 $728,336 $1,140,708 STREET RECONSTRUCTION FUND $2,110,548 $2,552,631 $2,938,313 $2,895,990 $3,413,347 REVENUES BEGINNING FUND BALANCE $2,785,748 $2,986,573 $2,859,162 $2,485,685 $2,301,466 ENTERPRISE SALES $2,285,870 $2,399,462 $2,538,821 $2,685,496 $2,839,838 TRUNK FUND CONTRIBUTIONS $0 $0 $0 $0 $0 WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 STORM WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 SANITARY SEWER FUND CONTRIBUTION $0 $0 $0 $0 $0 MSA CONTRIBUTION $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $25,503 $25,758 $26,015 $26,275 $26,538 TOTAL REVENUE $2,311,373 $2,425,220 $2,564,836 $2,711,771 $2,866,376 EXPENDITURES PROJECTS $2,110,548 $2,552,631 $2,938,313 $2,895,990 $3,413,347 TOTAL EXPENDITURES $2,110,548 $2,552,631 $2,938,313 $2,895,990 $3,413,347 ENDING FUND BALANCE $2,986,573 $2,859,162 $2,485,685 $2,301,466 $1,754,495 2020 PROJECTS SANITARY SEWER LINING $150,000 FLEET REPLACEMENT $79,500 TOTAL $229,500 11/5/2019 2020 CIP Approvel Document CAPITAL IMPROVEMENT PROGRAM SOLID WASTE FUND 2020-2024 PROJECTS 2020 2021 2022 2023 2024 OPERATING EXPENSES $878,789 $905,153 $932,308 $960,277 $989,085 TRANSFERS OPERATION(PERSONNEL) $145,811 $150,185 $154,691 $159,332 $164,111 DISPOSAL COSTS $1,043,475 $1,095,531 $1,149,089 $1,204,187 $1,249,765 CONTRACT RECYCLING $738,097 $760,240 $783,047 $806,539 $830,735 CAPITAL IMPROVEMENTS $0 $349,430 $0 $0 $387,040 STREET RECONSTRUCTION FUND $2,806,172 $3,260,539 $3,019,135 $3,130,335 $3,620,736 REVENUES BEGINNING FUND BALANCE $1,317,208 $967,295 $575,192 $603,795 $710,869 ENTERPRISE SALES $2,415,453 $2,827,012 $3,005,683 $3,194,711 $3,394,664 COUNTY COMMUNITY FUNDING $30,300 $30,603 $30,909 $31,218 $31,530 WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 STORM WATER FUND CONTRIBUTION $0 $0 $0 $0 $0 SANITARY SEWER FUND CONTRIBUTION $0 $0 $0 $0 $0 MSA CONTRIBUTION $0 $0 $0 $0 $0 MISCELLANEOUS INCOME $10,506 $10,821 $11,146 $11,480 $11,825 TOTAL REVENUE $2,456,259 $2,868,436 $3,047,738 $3,237,409 $3,438,019 EXPENDITURES PROJECTS $2,806,172 $3,260,539 $3,019,135 $3,130,335 $3,620,736 TOTAL EXPENDITURES $2,806,172 $3,260,539 $3,019,135 $3,130,335 $3,620,736 ENDING FUND BALANCE $967,295 $575,192 $603,795 $710,869 $528,152 2020 PROJECTS NONE $0 TOTAL $0 11/5/2019 2020 CIP Approvel Document CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 OFarmingtonMN.gov ____ ________ TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Boards/Commissions Budget Discussion DATE: November 12, 2019 INTRODUCTION The issue of funding for boards and commissions was recently brought up at an EDA meeting. The city council representatives on the EDA asked that we discuss this issue with the city council. DISCUSSION Our boards and commissions are funded through the General Fund with the exception of the Water Board. The EDA receives funding for programs from the General Fund each year which helps pay for all of their programs. The issue of EDA funding was recently discussed by that group and I was asked to place this item on a city council work session for discussion. This meeting will allow the city council a chance to discuss this item and how you would like to approach it in the future. BUDGET IMPACT TBD ACTION REQUESTED Discuss the issue of boards and commissions funding. CITY OF 0430 Third St., Farmington, MN 55024 FARM I NGTON © 651'280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Ladder Truck Financing DATE: November 12, 2019 INTRODUCTION The city council has previously discussed replacing two fire engines that the city owns with a ladder truck and engine as part of the capital improvement plan. DISCUSSION At the May 6, 2019 work session, staff discussed the capital improvement plan for replacing two fire engines with the city council.The first replacement is proposed to replace Engine 2 with a ladder truck. Since that work session, staff has further researched the costs of the truck and financing options available.The city can choose a lease purchase agreement option with the truck or issue debt with equipment certificates. Both options are attached. Staff provided a not-to-exceed cost of$1,200,000.The interest rates may fluctuate.The final cost depends on when the contract is signed, prepayment discounts, and trade-in value. BUDGET IMPACT The purchase would result in a levy increase over five years with the financing options provided. ACTION REQUESTED Discuss the information provided, ask any questions that you may have, and provide staff with further direction. ATTACHMENTS: Type Description a Backup Material Lease Option D Backup Material Equipment Certificates Option PN City of Farmington 0 QUIIPM NI'FINANCE Compounding Period: Annual Nominal Annual Rate: 3.020% Cash Flow Data - Loans and Pa ments 'Event 'Date I Amount I Number I Period I End Date 1 Loan 01/01/2020 1,200,000.00 1 2 Payment 01/01/2021 262,175.13 5 Annual 01/01/2025 TValue Amortization Schedule - Normal, 360 Da Year Date Payment Interest Principal Loan 01/01/2020 1 01/01/2021 262,175.13 36,240.00 225,935.13 2 01/01/2022 262,175.13 29,416.76 232,758.37 3 01/01/2023 262,175.13 22,387.46 239,787.67 4 01/01/2024 262,175.13 15,145.87 247,029.26 5 01/01/2025 262,175.13 7,685.56 254,489.57 Grand Totals 1,310,875.65 110,875.65 1,200,000.00 Page 1 of 1 City of Farmington, Minnesota $1,260,000 General Obligation Equipment Certificates of Indebtedness, Series 202 (Preliminary AA+Rates as of 10/15/19) Sources & Uses Dated 04/26/2020 I Delivered 04/26/2020 Sources Of Funds Par Amount of Bonds $1,260,000.00 Total Sources $1,260,000.00 Uses Of Funds Total Underwriter's Discount (0.600%) 7,560.00 Costs of Issuance 38,250.00 Deposit to Capitalized Interest(CIF)Fund 13 385.24 Deposit to Project Construction Fund 1,200,000.00 Rounding Amount 804.76 Total Uses $1,260,000.00 GO 2020A Syr I SINGLE PURPOSE I 10/29/2019 I 9:26 AM Northland Securities,Inc. Public Finance Page 1 City of Farmington,Minnesota _ $1,260,000 General Obligation Equipment Certificates of Indebtedness, Series 202 (Preliminary AA+Rates as of 10/15/19) Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 04/26/2020 - - - - - 02/01/2021 - - 13,385.24 13,385.24 13,385.24 08/01/2021 - - 8,761.25 8,761.25 - 02/01/2022 245,000.00 1.350% 8,761.25 253,761.25 262,522.50 08/01/2022 - - 7,107.50 7,107.50 - 02/01/2023 250,000.00 1.350% 7,107.50 257,107.50 264,215.00 08/01/2023 - - 5,420.00 5,420.00 - 02/01/2024 250,000.00 1.400% 5,420.00 255,420.00 260,840.00 08/01/2024 - - 3,670.00 3,670.00 - 02/01/2025 255,000.00 1.400% 3,670.00 258,670 00 262,340.00 08/01/2025 - - 1,885.00 1,885.00 - 02/01/2026 260,000.00 1.450% 1,885.00 261,885.00 263,770.00 Total $1,260,000.00 - $67,072.74 $1,327,072.74 - Date And Term Structure Dated 4/26/2020 Delivery Date 4/26/2020 First available call date Call Price Yield Statistics Bond Year Dollars $4,777.50 Average Life 3.792 Years Average Coupon 1.4039297% Net Interest Cost(NIC) 1.5621714% True Interest Cost(TIC) 1.5672512% All Inclusive Cost(AIC) 2.4178991% IRS Form 8038 Net Interest Cost(NIC) 1.5621714% Weighted Average Maturity 3.792 Years Bond Yield for Arbitrage Purposes 1.4030843% GO 2020A 5yr I SINGLE PURPOSE I 10/29/2019 I 9:26 AM Northland Securities,Inc. Public Finance Page 2 CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651.280.6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Gary Rutherford, Police Chief SUBJECT: Employee Recognition Program-Police DATE: November 12, 2019 INTRODUCTION For many years,the Farmington Police Department(FPD) has had no formal employee recognition program. The FPD has always had a culture where individual or group achievement was downplayed and formal recognition was not considered a necessary component of an overall employee engagement strategy. Staff believes this approach to be a mistake and desires a correction. DISCUSSION Public recognition and acknowledgement of exemplary performance is a critical component of an effective employee engagement strategy. Employees that feel valued and see that their high performance is recognized and appreciated are more likely to continue performing at a high level. The proposed program allows any member of the department or the public to nominate any other member of the department or the public for a variety of awards and commendations. An Awards Committee comprised of members of the department from all divisions (Administration, Investigations, and Patrol)will periodically meet to evaluate submitted nominations and forward their recommendations to the Police Chief for final disposition. It is our intent to present any approved nominations at an annual banquet. The Minnesota Attorney General's Office has consistently ruled over the years that"local governments do not have implied authority to sponsor employee social events simply because they have the express power to compensate employees." The Minnesota AG's Office holds the position that non-monetary benefits must be specifically authorized by law or charter. Under Minnesota Statute 15.46, a statutory or home rule charter city "may establish and operate a program of preventative health and employee recognition services for its employees and may provide necessary staff, equipment, and facilities and may expend funds as necessary to achieve the objectives of the program." The Minnesota AG's Office further recommends that any such programs be in writing and be approved by the city council. Included with this memo are copies of the Police Department's proposed Employee Recognition Program, a blank copy of the Nomination Form, and the Statement of Position from the State of Minnesota Office of the State Auditor reflecting their position supported by information from the Minnesota AG's Office. BUDGET IMPACT Cost estimates for the implementation of this program are just that, estimates.The department anticipates an annual cost for ribbons, certificates and medals to be approximately$500. We further estimate that an annual recognition banquet including venue rental and dinner for employees and honorees (guests would be welcome but would have to pay for their own dinner)could likely be accomplished for$2,500.00 to$3,000.00. For 2019 and 2020,we would use existing funds within our approved budget. Going forward, best practices would suggest that this program be a specifically budgeted item. ACTION REQUESTED Ask any questions you may have and provide staff with guidance on this subject. ATTACHMENTS: Type Description o Backup Material Employee Recognition Program o Backup Material Award Nomination Form D Backup Material Auditor Position Statement Farmington Police Department Employee Recognition Issued: March 2018 Last Review:June 2019 PROGRAM The Farmington Police Department expects a high level of professional performance from all employees. When employees exceed that high level of performance, awards are an appropriate way for the department to express recognition and appreciation for outstanding service. PURPOSE Special recognition may be in order whenever an employee of the Farmington Police Department performs his/her duties in an exemplary manner. Citizens may also perform meritorious acts deserving of recognition. The purpose of this program is to establish procedures to recognize department personnel and citizens. PROCEDURES 1-2.1 Definition of Awards,Certificates and Recognition The Farmington Police Department recognizes three levels of recognition -Awards, Certificates of Commendation,and Letters of Commendation. Awards will consist of a decorative ribbon to be worn on the Class A uniform. The awards are listed below in the order the ribbons are to be displayed on the Class A uniform. Non-sworn police department employees shall be entitled to the commendation ribbon even though they do not have a Class A uniform. Oak leaf clusters may be added to a ribbon if a commendation is awarded multiple times. Once a recipient has received their second award, a bronze oak leaf cluster will be placed on the ribbon. Up to four bronze oak leaf clusters will be worn on one ribbon; signifying the recipient has received that award five times. Once the recipient has received their sixth award the ribbon will then display a silver oak leaf cluster. If a recipient has received an award seven times the ribbon would display a silver oak leaf cluster and one bronze oak leaf cluster.This pattern would continue until the recipient has reached four silver oak leaf clusters. Bronze Oak Leaf Cluster=One Award ft Silver Oak Leaf Cluster= Five Awards 1 40- Farmington Police Department A. Awards are defined as: 1. Medal of Honor The Medal of Honor is the highest award given and may be presented to an employee who, conscious of danger, knowingly and appropriately exposes themselves to a risk of great bodily harm or death while attempting to accomplish a meaningful police, civic, or humanitarian goal. This award shall consist of a plaque displaying the Medal of Honor and a narrative detailing the incident for which the medal is awarded. A copy of the narrative shall be placed in the recipient's personnel file. A commendation ribbon representing the Medal of Honor will also be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a Carolina blue background containing a centered thin red vertical stripe within a wider yellow vertical stripe. Rj ; „iito 411, 2. Medal of Valor The Medal of Valor may be presented to an employee who,conscious of danger, knowingly and appropriately exposes themselves to a high risk of personal harm to accomplish a meaningful police,civic, or humanitarian goal. This award shall consist of a plaque displaying the Medal of Valor and a narrative detailing the incident for which the medal is awarded. A copy of the narrative shall be placed in the recipient's personnel file. A commendation ribbon representing the Medal of Valor will also be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a vertical stripe set in the following order:yellow, Carolina blue,white, red, white, royal blue, and yellow. v,----1-5. 3 I 1 2 Farmington Police Department 3. Medal of Commendation The Medal of Commendation may be presented to a member of the department for an incident of exceptional service or for long-term exceptional performance and dedication to the department and community. The award may also be given for an incident which shows extraordinary expertise,thoroughness, or determination. This award shall consist of a plaque displaying the Medal of Commendation and a narrative detailing the incident for which the medal is awarded. A copy of the narrative shall be placed in the recipient's personnel file. A commendation ribbon representing the Medal of Commendation will also be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a solid maroon background with white edges. IP 4. Chief's Award of Merit The Chief's Award of Merit may be presented to a Farmington Police Department employee for performance resulting in improved operations, outstanding community service, or substantial savings in organizational costs. This award may be presented to other law enforcement agencies,other employees of the Farmington Police Department, other City of Farmington employees, or the public. This award shall consist of a certificate or letter of recognition. Employees receiving the Chief's Award of Merit shall receive a commendation ribbon and a plaque displaying a narrative detailing the situation for which the medal is awarded. A copy of the narrative shall be placed in the recipient's personnel file. The commendation ribbon representing the Chief's Award of Merit will be given to the employee to wear on the Class A uniform. This commendation ribbon consists of set of alternating vertical yellow and royal blue stripes centered on a light blue background. Oak leaf clusters will be added to the ribbon if the award is received multiple times by the same recipient. I 3 V' Farmington Police Department ram 5. Department Award of Merit The Department Award of Merit may be awarded to a member of the department for outstanding performance or achievement in the competent application of an employee's job skills, usually under difficult circumstances. The award shall consist of a framed narrative outlining the performance or achievement being recognized. A copy of this certificate shall be placed in the employee's personnel file. A commendation ribbon representing the Department Award of Merit will also be given to the employee to wear on the Class A uniform. This commendation ribbon consists of two thick vertical orange stripes near the edges of the ribbon on a solid royal blue background. Oak leaf clusters will be added to the ribbon if the award is received multiple times by the same recipient. 11 6. Life Saving Award The Life Saving Award may be presented to an employee whose actions directly resulted in, or significantly contributed to, the saving of a human life. This award shall consist of a framed certificate containing a narrative outlining the circumstances justifying the award. A copy of the certificate shall be placed in the employee's personnel file. A commendation ribbon representing the Life Saving Award will also be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a series of vertical royal blue stripes on a yellow background. Oak leaf clusters will be added to the ribbon if the award is received multiple times by the same recipient. ISI I 7. Stork Award A Stork Award may be recommended for an employee or citizen who played a significant role in the delivery of a newborn baby. Once the recommendation has been vetted by the Recognition Review Board,the recommendation will be presented to the appropriate Emergency Medical Service (EMS) provider involved in the original incident. The EMS provider will be the final authority on the warrant of a Stork Award and will be the organization which issues the award. 4 Farmington Police Department This award shall consist of a framed certificate containing the narrative outlining the circumstances justifying the award. A copy of the certificate shall be placed in the employee's personnel file. A commendation ribbon representing the Stork Award will also be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a set of vertical stripes centered on a blue background as follows: orange, navy blue white, navy blue and orange. Oak leaf clusters will be added to the ribbon if the award is received multiple times by the same recipient. 8. Farmington Police Department Duty Recognition Awards The Farmington Police Department will recognize those officers that work in special assignments or duties throughout their career within the agency. The award will be divided into three subgroups representing the individual duties. A commendation ribbon representing each individual subgroup will also be given to the employee to wear on the Class A uniform. These commendations will be as follows. a. Tactical Award The Tactical Award will recognize officers who have served on the Dakota County Multi-Agency Assistance Group (MAAG),the South Metro Specialized Weapons and Tactics (SWAT)Team,the Dakota County Special Operations Team (SOT),the Dakota County Drug Task Force (DTF),the Mobile Field Force, or as a canine (K9) handler. The Farmington Police Department shall recognize an officer who has previously served in one of these specific groups for another agency within their jurisdiction and would allow its display on the recipient's Class A uniform. A commendation ribbon representing the Tactical Award will be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a vertical stripe set in the following order: black, Carolina blue, teal green,grey, white,teal green, Carolina blue and black. IM b. Investigative Award The Investigative Award will recognize officers who have served as a department investigator, Community Resource Officer(CRO), School Resource Officer or a member of the Crime Scene Team (CST). A commendation ribbon representing the Investigative Award will be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of 5 Farmington Police Department F.y pt> a vertical stripe set in the following order: purple,white, Carolina blue, black, Carolina blue,white, purple. s 1 c. Training and Proficiency Award The Training Award will recognize officers who have served as a trainer within the Farmington Police Department, officers who oversee these duties and officers with specialized non-tactical training. Duties include Field Training Officer(FTO), Firearms/Use of Force/Reality-based Training Instructor, Drug Recognition Evaluator (DRE), Police Explorers Advisor or a member of the Crisis Intervention Team (CIT). A commendation ribbon representing the Training and Proficiency Award will be given to the employee to wear on the Class A uniform. This commendation ribbon shall consist of a vertical stripe set in the following order: Carolina blue,yellow, Carolina blue, green,yellow, green,yellow, green, Carolina blue,yellow and Carolina blue. 9. Service Award The Service Award may be presented to an employee who completes the terms of 5, 10, 15, 20, 25, and 30 years of service as a law enforcement officer. An officer receiving the Service Award shall receive a commendation ribbon consisting of a four vertical Carolina blue stripes on a royal blue background. The ribbon will be awarded after five years of sworn law enforcement officer service. Oak leaf clusters shall be added to the ribbon to represent every additional five years of police service by the recipient. 10. National Service Award The National Service Award may be presented to an employee for honorable active duty service in the US Armed Forces.The National Service Award may be awarded to an employee for service in the Reserve or National Guard Components who have been ordered to Federal active duty service. 6 Farmington Police Department 0, An officer receiving the National Service Award shall receive a commendation ribbon consisting of vertical white and red stripes near the edges of a solid royal blue background. 11. Education Award The Education Award may be presented to an employee who completes a Graduate Degree program from an accredited university. An officer receiving the Education Award shall receive a commendation ribbon consisting of a vertical red stripe down the center of a royal blue background with two vertical yellow outer stripes. 12. Letter of Commendation A Letter of Commendation may be given to an employee by a supervisor for outstanding performance during a single incident or for an incident which demonstrates the competent application of an employee's job skills, usually under difficult or sustained circumstances. The letter will be on department letterhead and include a narrative outlining the incident being recognized. A copy of the letter will be forwarded to the employee's Division Supervisor and the Chief of Police. A copy of this letter shall be placed in the employee's personnel file. 13. Unit Citation A Unit Citation may be awarded to any unit of the Department for an intelligent act, or series of acts, materially contributing to a valuable police accomplishment, an exceptional piece of police work, or an unusual accomplishment involving personal danger or under adverse conditions. This award is intended to reward teamwork by two or more officers. A Letter of Commendation will be presented. 7 Farmington Police Department 14. Recognition by Citizen(s) This form of recognition is given to employees by citizens for the purpose of expressing appreciation for service the citizen believed is beyond the scope of duty. The recipient of a significant form of appreciation from a citizen should notify the immediate supervisor. The supervisor may then notify the Division Supervisor. Significant forms of appreciation may include a note, letter, or verbal communication sent to the employee, employee's supervisor or other city official. The Chief or Division Supervisor may consider additional departmental recognition or for inclusion in the employee's personnel file. 1-2.2 Recognition of Citizens When an employee believes that a citizen's actions merit recognition,the employee should submit a nomination to the Division Supervisor.The nomination should provide a detailed account of the circumstances for which the citizen is being nominated and type of award. The Division Supervisor will determine if, or what type of award will be presented. A. Citizens may be recognized in one of two ways: 1. Letter of Appreciation: When a citizen has made a special effort to assist the Police Department, an employee may request that the Chief of Police or designee send a Letter of Appreciation. 2. Citizen Certificate of Recognition: This certificate may be given to a citizen for outstanding assistance to the Police Department, or for other efforts beneficial to public safety, usually under difficult circumstances. B. Manner of Presentation: 1. Letters of Appreciation may be sent to the recipient through the mail or be presented to the recipient in person by the nominating employee. 2. A Citizen Certificate of Recognition will be presented in a manner deemed appropriate by the Chief of Police or designee.This may include a formal presentation at a city council meeting, at a Police Department function, or a personal presentation to the recipient. 1-2.3 Nomination Procedures A member of the department may nominate another member for recognition by award or certificate. Submitting a completed Nomination for Recognition form to the employee's Division Supervisor or designee is required for nominations. The Division Supervisor or designee will review 8 4 Farmington Police Department the nomination to ensure that it is detailed,specific, and includes all necessary information needed to assist the Recognition Review Board. The Division Supervisor or designee will acknowledge receipt of the nomination. The nomination will be forwarded to the Recognition Review Board to be included in a file of nominations for consideration. Upon becoming aware of any incident or action deemed worthy of recognition,the Chief or Division Supervisor may submit an award nomination. The Chief, Division Supervisor or designee may elect to issue an award immediately without committee approval. Citizens may not make a formal nomination for the recognition of a department employee. 1-2.4 Recognition Review Board A Recognition Review Board, comprising up to five members of the department,will be established to review Nominations for Recognition. The Chief of Police will select the board; participation is voluntary. Board members should be chosen from all divisions of the department. At least one board member shall be a supervisor. A member of administration will also be present as a representative of the Chief. The administrative member will break any voting deadlock and report the findings of the board to the Chief. The Recognition Review Board will review all submitted nominations for recognition. The investigation to determine if an award is appropriate may include speaking with witnesses, examining evidence, reviewing reports, or anything else the board deems necessary to make a decision. The Recognition Review Board will meet to review nominations for recognition after a final acceptance date has been announced and passed. After reviewing the nominations,the board shall vote to determine if the nomination is recommended for approval. To approve a nomination for recognition,the vote must be by a simple majority.The Recognition Review Board must vote in its entirety. An alternate member represents any absences. If circumstances make this impractical,the administrator on the board may fill the vacancy, reschedule the vote or waive the full board requirement. The Recognition Review Board may deny or recommend a level of recognition other than that for which an employee was originally nominated. All nominations will be forwarded to the Chief of Police for final review.The Chief of Police shall have final authority to determine if recognition will be given. All deliberations of the review board are confidential. Information regarding the award process may only be released through the Chief. 1-2.5 Award Presentation 9 Farmington Police Department 10 The following are guidelines for award presentations: A. The Chief of Police or designee will present all awards. B. The Chief of Police may elect to have an awards ceremony. C. The Chief of Police may issue any award, except for Officer of the Year or Employee of the Year, at any time the Chief feels that the award's criteria is met, without input from the Recognition Review Board. D. Media releases will be made at the direction of the Chief of Police. 1-2.6 Award Display Commendation Bars may be worn on the Class A duty uniform shirt or jacket at the discretion of the recipient. When worn, the awards shall be centered above the name tag over the right shirt pocket. When more than one classification of commendation bar is worn, they will be worn in the order of precedence from wearer's left to right in one or two rows with either no space between rows. No more than three commendation bars will be worn in each row. The top row will be centered over the bottom row. When more than one award is worn, slide holders will be utilized to assist in the alignment of the commendation bars. The slide holders will be of a standard configuration. The slide holders will be of a Gold finish with two clutch back attachments. Only one commendation bar for each level of award may be worn. The following list indicates the order of precedence for commendation bars: A. Medal of Honor I B. Medal of Valor I C. Medal of Commendation D. Chief's Award of Merit E. Department Award of Merit F. Life Saving I I•I I 10 0 Farmington Police Department G. Stork Award MI KM H. Duty Awards MINI I. Service Award J. National Service Award I I K. Education Award I _ I FORMS A. Nomination for Recognition 11 FARMINGTON POLICE DEPARTMENT Nomination for Recognition Person Nominated: Employee or Citizen: Date of Nomination: I Date of Event: CAD/Case File: I Employee Submitting Nomination: I Level of Recognition: Medal of Honor f- Medal of Valor Medal of Commendation Chief's Award of Merit Department Award of Merit Life Saving Award Unit Citation I- Stork Award Citizen's Awards: Letter of Appreciation Certificate of Recognition Stork Award Reason for Nomination: (Include any supporting documentation) Board Members Present: Date: Recommended Action: Chief's Action: Date: STATE OF MINNESOTA '?x OFFICE OF THE STATE AUDITOR 4. SUITE 500 �v�e,• 525 PARK STREET (651)296-2551(Voice) REBECCA OTTO SAINT PAUL,MN 55103-2139 state.auditor@osa.statemn.us (E-mail)55 il state.auditor osa.state.mn.us(Em STATE AUDITOR 1-800-627-3529(Relay Service) Statement of Position Employee Recognition Programs and Events Local units of government often ask whether they can spend money to hold holiday parties, employee banquets or other employee social events. These questions appear to be motivated by a desire to celebrate a holiday or significant event in an employee's career or to generally boost morale in the workplace. Important limitations exist on the use of public funds for employee social and recognition events. The key question is whether a local government has legal authority for this type of expenditure. Generally, in order to spend money,a local government must have authority to do so. Authority for an expenditure may be specifically stated in a statute or charter, or it may be implied as necessary to do what an express power authorizes. The Minnesota Attorney General's Office has considered the issue several times and has consistently said that local governments do not have implied authority to sponsor employee social events simply because they have the express power to compensate employees. Instead, the Attorney General's position is that non-monetary benefits must be specifically authorized by law or charter. Based on this rationale,the Attorney General's Office wrote to the Champlin city attorney in 1998, indicating that no statutory authority existed for a city to hold an annual employee appreciation dinner or to award employee recognition gifts to employees. The Attorney General's Office stated:"[W]hile an agreed upon monetary bonus might be provided as part of a salary plan to employees who meet performance or longevity standards, we are at a loss to locate authority for expenditures of funds for in-kind awards or social occasions of the type described." Limited Statutory Authority Granted to Counties and Cities Counties and cities have specific authority for a wellness and employee recognition program under Minn. Stat. § 15.46. This statute states that a county or a statutory or home rule charter city "may establish and operate a program of preventive health and employee recognition services for its employees and may provide necessary staff, equipment, and facilities and may expend funds as necessary to achieve the objectives of the program." Cities were added to the statute in 2007. This statute does not currently extend to other local units of government. Reviewed: February 2014 2007-1006 Revised: February 2014 This Statement of Position is not legal advice and is subject to revision. An Equal Opportunity Employer Properly established programs should be in writing and approved by the county board or city council. They should include clear wellness and recognition objectives. The county board or city council must determine what amounts can be expended as "necessary to achieve the objectives of the program." The Office of the State Auditor, in reviewing county or city expenditures for wellness and employee recognition programs, will be guided by what is permitted and what is prohibited for state employees. Counties and cities cannot simply provide employee banquets or parties for all employees. County and city funds can be spent only as necessary to achieve the objectives of an established wellness and employee recognition program. The public entity may not pay for spouses or third parties to attend a recognition event. In addition, expenditure of public funds to purchase alcohol is not permitted. Towns Have Specific Statutory Authority Regarding Volunteers and Retiring Officers Although towns are not mentioned in section 15.46, the 2008 Legislature granted town electors the authority to set an amount of money for the town board to spend recognizing "volunteers, service efforts, and retiring town officers."' The statute specifically requires the electors at their annual town meeting to set the amount of money to be spent on these recognitions. Absent such a vote by the electors, towns do not have authority to hold volunteer or retiring officer recognition events. School Districts Have Separate Specific Authority School districts have separate specific statutory authority to recognize district employees. A school board may establish and operate an employee recognition program for district employees, including teachers, and may expend funds as necessary to achieve the objectives of the program. The statute specifically states, however, that employee recognition programs"shall not include monetary awards."2 Minn.Stat.§365.10,subd.12. 2 See Minn.Stat.§123B.02,subd. 14a. Reviewed: February 2014 2 2007-1006 Revised: February 2014 CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 _III O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director SUBJECT: Water Board Options DATE: November 12, 2019 INTRODUCTION A vacancy currently exists on the Water Board. At a previous City Council work session,we discussed the vacancy and potential options to fill the opening. Council directed staff to research and provide information on the options discussed. DISCUSSION The Water Board was created in 1911 and currently functions under state statutes as a Independent Utilities Commission. Membership of a utility commission is addressed under Statute 412.341. M.S.§412.341 COMMISSION;MEMBERSHIP, ORGANIZATION. Subdivisionl. Membership. The commission shall consist of three members appointed by the council. No more than one member may be chosen from the council membership. Each member shall serve for a term of three years and until a successor is appointed and qualified except that of the members initially appointed in any city, one shall serve for a term of one year, one for a term of two years, and one for a term of three years. Residence shall not be a qualification for membership on the commission unless the council so provides.A vacancy shall be filled by the council for the unexpired term. One council member may be appointed, but no more than one. This means that the Council may not serve as the Water Board, unlike the approach that was taken with the Planning Commission serving in a dual capacity as the Heritage Preservation Commission. There was discussion at the last work session related to the similarity of duties of the Water Board related to the water utility as to duties of the Council related to the other enterprise utilities and for consistency that these duties could be under one oversight body,the Council. To shift the duties of the water utility to the Council the Water Board would have to be abolished. A Commission/Board established under M.S. §412 may be abolished by following the procedure specified in state law,which authorizes submittal of a ballot question at a general or special election of the question"shall the public utilities commission [Water Board] be abolished? 412.391 ABOLITION OF COMMISSION OR UTILITY TRANSFER. Subdivision 1. To council;procedure. The public utilities commission of any statutory city may be abolished or its jurisdiction over any particular utility transferred to the council by following the procedure prescribed in this section. Subdivision. 2. Ballot question if abolition. The council may,and upon petition therefor signed by voters equal in number to at least 15 percent of the electors voting at the last previous city election shall submit to the voters at a regular or special election the question of abolition of the public utilities commission. The question on the ballot shall be stated substantially as follows: "Shall the public utilities commission be abolished?" Subdivision. 3. Ballot question if transfer. Upon like presentation of a petition for election on the question of transfer to the council of the jurisdiction of the commission over any one or more of the utilities previously placed under its jurisdiction, the council shall,in the same manner as under subdivision 2,submit the question to the voters. The question on the ballot shall be stated substantially as follows: "Shall jurisdiction over(Name of public utility)be transferred from the public utilities commission to the council?" Subd. 4.Time of effect. If a majority of the votes cast on a proposition submitted to the voters under subdivision 2 or 3 is in the affirmative,the provisions of sections 412.331 to 412.381 shall cease to apply to the city,in the case of an election under subdivision 2,or to the particular utility mentioned in the proposition submitted to the voters,in the case of an election under subdivision 3. Such change shall take place 30 days after the election. Given this information,there are three options the Council could pursue: 1. Using past practice, advertise,accept applications, interview and and select a community member to fill the vacancy. 2. Select a council member to fill the vacancy. 3. Direct staff to pursue abolition of the Water Board following the procedures established in state statute. BUDGET IMPACT N/A ACTION REQUESTED Provide direction to staff regarding the Water Board.