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HomeMy WebLinkAbout11.12.20 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall �■�� 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA November 12, 2020 5:05 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Dakota County Ordinance 110 and Solid Waste Discussion with Commissioner Slavik(30 Minutes) (b) Final Review 2021 Budgets (25 Minutes) (c) Fire Training Shifts and Duty Crews (15 Minutes) (d) Charitable Gambling Contribution (15 Minutes) (e) Draft Ordinance Discussion-Neighborhood Picketing(15 Minutes) (f) Downtown Liquor Store Discussion (15 Minutes) 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 � IIIN"I %%1 O Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Dakota County Ordinance 110 and Solid Waste Discussion with Commissioner Slavik (30 Minutes) DATE: November 12, 2020 INTRODUCTION Dakota County Commissioner Mike Slavik will be in attendance at the work session to discuss an issue related to solid waste revenue in Farmington. DISCUSSION Commissioner Slavik has been working with county staff and the Dakota County Board of Commissioners as it relates to possible revenue related to our solid waste program. Commissioner Slavik will update the city council on this issue at the work session. Commissioner Slavik will also be attending one of your December city council meetings to provide his regular update. Since it has been some time since we received an update, other issues may come up for discussion at the work session. BUDGET IMPACT TBD ACTION REQUESTED Listen to the update provided by Commissioner Slavik and ask any questions you may have. CITY OF 0 Q 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 O Farmington MN.gov III�11111� TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Final Review 2021 Budgets (25 Minutes) DATE: November 12, 2020 INTRODUCTION The city council has been working on the draft 2021 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 7, 2020 city council meeting. DISCUSSION General Fund At the September 21, 2020 city council meeting,the city council approved a 4.90 percent levy increase for 2021. 2020 Budget 2021 Increase Preliminary (Decrease) Budget Revenues $3,411,161 $3,298,344 (3.31)% Expenditures 13,642,352 13,832,464 1.39 Fiscal Disparities 2,294,024 2,277,659 (0.71) General Fund Levy 1 7,937,167 1 8,256,461 14.02 Debt Levy 2,805,387 1 3,012,093 7.37 Net Tax Levy $10,742,554 1 $11,268,554 4.90% The city has faced challenging times due to COVI D-19. There has been a decline in revenues in areas such as Parks and Recreation and the RRC. The reduction is predicted to continue into 2021 resulting in lower revenue receipts than the typical annual increase in those areas. Permit revenue has continued to increase rather than decline and is anticipated to continue into 2021. The Local Government Aid (LGA) that is received from the State of Minnesota has been reduced by$228,800. The majority of the increase in expenditures can be accounted for in human resource costs.Those include approved union contracts and estimates for employee benefits and worker's compensation premiums. Staff did complete a successful RF P for employee benefits resulting in over$100,000 in savings to the General Fund. The city will see a decline in Fiscal Disparities for 2021. The estimate received includes a decrease of $16,365. The debt levy includes the city's current debt obligations and interfund loans. Ladder One was purchased in 2020 resulting in an overall increase to the debt levy.The truck is anticipated to be delivered in early 2021. Special Revenue Funds EDA-The Dakota Broadband Board (D BB) Executive Director is accounted for in the EDA. As a part of the interchange agreement, all of the human resource costs for the director are paid for by the city and reimbursed by the DBB. I ce Arena Fund -The I ce Arena Fund's budget has been similar year-to-year. The conservative budget has the arena producing a slight revenue at the end of 2021.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. Those funds are used to support the equipment used to record and broadcast city meetings. 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($75,000), fire equipment($91,545), and police vehicles ($143,989). 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 from the General Fund includes: $331,208 for pavement maintenance, $50,000 for trail maintenance, $57,786 for building maintenance, $10,825 for EAB, and $3,000 for township road maintenance.There is an additional transfer of$200,000 in liquor proceeds for pavement maintenance. Enterprise Funds Liquor Stores Fund -The two liquor stores have been affected by COVI D-19 as shown in the attached budget summary. The downtown store is well below budget while the Pilot Knob store has exceeded the 2020 budget. With that in mind,the budget for the downtown store has been updated for 2021.The transfers for the liquor store fund include$63,910 in administrative transfers that cover payroll, human resources, finance and administration. The liquor store also transfers $75,000 into the Park Improvement Fund. In 2021 it is budgeted for additional transfers of$200,000 to support pavement maintenance and$25,000 to support the General Fund. 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 in addition to the Maintenance Funds capital improvement plans were discussed at the October 12, 2020 work session. A copy of the summary budgets and operating transfers have been included for your review. BUDGET IMPACT This establishes the 2021 budgets. ACTION REQUESTED Discuss the proposed final tax levy and city budgets. Ask any questions that are remaining of the proposed budgets and provide staff with direction on any needed revisions. ATTACHMENTS: Type Description ❑ Backup Material General Fund Budget Summary ❑ Backup Material 2021 Operating Transfers ❑ Backup Material Debt Service Funds ❑ Backup Material Special Revenue Funds Budget Summary ❑ Backup Material Capital Projects Funds Budget Summary ❑ Backup Material Liquor Funds Budget Summary ❑ Backup Material Enterprise Funds Budget Summary City of Farmington Budget and Tax Levy 2020 Budget, 2021 Proposed and 2022 Proposed Company 2020 2021 Budget% 2022 Budge: Budget Proposed Change Proposed Change /o Non-Property Tax Revenues Licenses and Permits 473,115 517,076' 9.29%' 453,600 (12.28)%' Intergovernmental Revenue 922,294 667,912 (27.58)% 663,587 (0.65)%' Charge for Service 565,802 576,197 1.84%' 589,285 2.27% Fines and Forfeitures 49,000 49,000 0.00% 49,000 0.00%' Investment Income 38,800 29,100 (25.00)% 15,400 (47.08)%" Miscellaneous 54,580 79,370 45.42% 53,170 (33.01)%' Transfers In 1,307,570 1,379,689 5.52% 1,408,874 2.12% Total Revenues 3,411,161 3,298,344 (3.31)%' 3,232,916 (1.98)%' Expenditures _ Administration 907,162 889,300 (1.97)% 1,087,554' 22.29%'' Human Resource 349,226' 361,658' 3.56% 391,509' 8.25% Dakota Broadband 24,489 37,500' 53.13% 40,500' 8.00%' Finance and Risk Mgmt 778,889 776,287 (0.33)% 827,688 6.62% Police 4,677,813 4,853,870 3.76%' 5,321,825 9.64% Fire 1,445,410 1,441,226 (0.29)% 1,573,473 9.18% Community Development 1,014,867 1,007,849' (0.69)% 1,103,540 9.49% Engineering 794,635 813,895 2.42% 889,172 9.25% Municipal Services 1,439,078' 1,511,187 5.01% 1,630,813 7.92%' Parks and Recreation 1,278,576 1,317,341 3.03% 1,454,246 10.39%' Transfers Out 932,207 822,351 (11.78)% 3,381,534 311.20% Total Expenditures 13,642,352 13,832,464' 1.39% 17,701,854 27.97% Revenues Over(Under)Expenditures (10,231,191) (10,534,120)', 2.96% (14,468,938) 37.35%' Fiscal Disparities 2,294,024' 2,277,659' (0.71)% 2,277,659 0.00% General Fund Levy 7,937,167'' 8,256,461 4.02%' 12,191,279 47.66%' Debt Levy Bonds 2,222,950' 2,444,840' 9.98% 2,099,788 (14.11)% 2005C Loan Repay-Storm Water Tr Adv 166,000 275,000' 65.66%' 166,000 (39.64)%'' 2010A Loan Repay-Storm Water Tr Adv 400,000 292,253'' (26.94)% 0 (100.00)%'' 201 OD Loan Repay-Storm Water Tr Adv 16,437 0 (100.00)% Total Debt Levy 2,805,387'', 3,012,093 7.37% 2,265,788' (24.78)%', Use of Fund Balance to Lower Debt Levy 0 Net Debt Levy 2,805,387 3,012,093' 7.37% 2,265,788' (24.78)%' Farmington Net Tax Levy 10,742,554! 11,268,554' 4.90% 14,457,067 28.30%' C D E I F H I M N O P Q R S T 1 2021 OPERATING TRANSFERS 2 TRANSFERS IN (5205) General General General General Capital Capital Capital Storm Capital Equipment Equip Fund Equip Fund General Water Arena Cap Equip Fund Fund(Police (Police (Fire 3 Fund EDA Park Imp Trunk Proj Fd (Vehicles) Vehicles) Equip) Equip) Sealcoat Street Main 5 Fund 1000 2000 2300 4400 4503 5600 5600:5 5600.5 5600.6 5701 5711 6 572,775 1000 Tax Levy _ - 75,000 91,545 331,208 7 105,587 1000LGA 40,000 8 1000 Future Street CIP Debt _ 9 - 1000 Future Street CIP Cash 10 143,989 1000 Future Vehicle CIP Cash 143,989 11 - 1000 Projects CIP Cash 12 1000 Projects CIP Debt _ 13 - 2000 EDA 14 - 2500 Arena 15 6,900 3094-2016A 6,900 16 292,253 3097-2010A 292,253 17 - 3099-2011 A 18 275,000 3130-2005C 275,000 19 - 3136-20168 20 _ 3137-2016C 21 - 3300-2010D 22 3139-2020A 23 340,410 6100 Admin(GF) 63,910 75,000 200,000 - 24 25,000 6100 25,000 25 89,411 6202 Admin(GF) 86,911 26 243,692 6202 HR 236,880 27 87,411 6302 Admin(GF) 86,911 28 61,848 6302 HR 61,848 29 86,911 6402 Admin(GF) 86,911 30 315,665 6402 HR 308,853 31 86,911 6502 Admin(GF) 86,911 32 357,126 6502 HR 335,554 33 3,090,889 1,379,689 40,000 75,000 574,153 - - 143,989 75,000 91,545 531,208 - Cell: F6 Comment:Teah Malecha: Reduced$10k 7/13/2020 Cell: N6 Comment:Teah Malecha: Removed$1,024 8/31/2020 Cell:S6 Comment:Teah Malecha: Reduced$400k 6/30/2020, moved$200k to liquor proceeds 7/13/20 Cell: U6 Comment:Teah Malecha: Reduced$40k 6/30/2020, reduced$30k 8/4/2020 Cell:W6 Comment:Teah Malecha: Reduce$17,172 8/31/2020 Cell:Z6 Comment:Teah Malecha: Employer portion of T Daus's insurance premium Cell:AA6 Comment:Teah Malecha: Budgeted transfer for insurance deductible.Reduced by$10k 6/30/2020, Reduced$4,024 and moved to LGA. Cell: F7 Comment:Teah Malecha: Reduced$20k 7/13/2020 Cell: N7 Comment:Teah Malecha: Moved $31k moved to Township rd maint,$5,976 to prop ins 8/31/2020 Cell:S7 Comment:Teah Malecha: moved$156,208 to tax levy due to LGA cut Cell:W7 Comment:Teah Malecha: Reduced$60k to$82,958 6/30/2020. Moved$67,172 to tax levy due to LGA cut Cell:T8 Comment:Teah Malecha: debt payment for backage road-Moved$126k to 2022 Cell:T9 Comment:Teah Malecha: moved$350k to 2022, update to$300k per David 6/17/2020 202nd St. Move$100k to liquor store proceeds 6/30/2020,removed$200k per council 7/13 Comment:Teah Malecha: 2016A interest pymt for interfund loan, attributed to 2010C,but to minimize special assessment prepayment risk for 2016A bonds Cell:M16 Comment:Teah Malecha: Represents annual debt service for 2010A which is used to repay Storm Water Trunk interfund loan. Actually doesn't flow through operating transfers, but is shown that way for budget purposes. Cell: M18 Comment:Teah Malecha: Represents annual debt service for 2005C which is used to repay Storm Water Trunk interfund loan. Actually doesn't flow through operating transfers,but is shown that way for budget purposes. Cell: E23 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:T23 Comment:Teah Malecha: $100k DT sidewalks moved from projects CIP cash&$100k from Future Street CIP cash FHS 6/30/2020, moved to sealcoat 7/13/20 Cell:AA23 Comment:Teah Malecha: Budgeted transfer for insurance deductible-Insurance Deductible Spreadsheet Cell:E25 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e. monthly transfers) Cell:AA25 Comment:Teah Malecha: Budgeted transfer for insurance deductible-Insurance Deductible Spreadsheet Cell: E26 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:Y26 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell: E27 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:AA27 Comment:Teah Malecha: Budgeted transfer for insurance deductible-Insurance Deductible Spreadsheet Cell: E28 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution ron• Geo Approx 4%increase rounded to be evenly divided by 12(i.e. monthly transfers) Cell: E32 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution Cell:Y32 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2021 Updated 2020 Salary Distribution 2021 Proposed Debt Service Object Refunding Ash St., Refunding of Elm City Hall&First St. Account Fire Station 2 Police Station Spruce St.,&Hill 195th Street St.,195th St.,& Garage Westview Area Ladder One Dee Walnut St. 4000-REVENUE AND EXPENDITU 4001 -REVENUES 4011 -CURRENT PROPERTY TA 275,000 292,253 443,000' 293,500' 574,327' 635,000' 231,000' 268,013 Property Taxes 275,000 292,253', 443,000 293,500 574,327', 635,000' 231,000' 268,013 4110-SPEC ASSESS CURRENT 58,926 286,149 Special Assessments 58,926 286,1491 4955-INTEREST ON INVESTM 3,100' 1,400 5,300' 300' 500 Investment Income 3,100' 1,400' 5,300' 300' 500! Total Revenues " $275,000 $292,253 $505,026; '$294,900 $865,776 $635,300 $231,500 : $268,013 6001 -EXPENDITURES 7110-DEBT PRINCIPAL 720,000' 210,000 540,000' 505,000' 180,000'. 7120-DEBT INTEREST 17,600' 55,450' 31,900' 116,275 34,500' 80,113 7130-FISCAL AGENT FEES 2,950 2,950 5,915', 2,950 2,950 2,950 7140-LEGAL&FISCAL FEES 1,100' 1,100' Debt Service 741,650 268,400' 578,915' 624,225' 217,450' 83,063 Total Exp 741,650 268,400', 578,915' 624,225' 217,450 83,063 7310-OPERATING TRANSFERS 275,000 292,253' 6,900' Transfers Out 275,000 292,253' 6,900' Other Financing Sources (275,000)' (292,253)' (6,900)', Net Change in Fund Balance $0 $0 ($236,624) $26,500 $279,961' $11',075 $14,050 $184,950 Special Revenue Funds Budget Summary 2019 Actual, 2020 Budget, 2021 Proposed and 2022 Proposed Company 2019 2020 2021 2022 Actual Budget Proposed Proposed Revenues EDA(2000) 75,832 165,611 182,574 194,196' TIF-Trident(2054) 147,996 146,410 146,310 Police Donations&Forfeitures(2100) 4,063 1,300 3,050 3,000 Park Improvement Fund(2300) 84,188 36,745 36,200 35,200 Ice Arena(2500) 367,717 368,200 380,000 395,900 ......_... Total Revenues 679,795' 571,856' 748,234; 774,606 Expenditures EDA(2000) 130,270 201,641 205,190' 231,559 TIF-Trident(2054) 132,995 2,850' 134,439 134,439 Police Donations&Forfeitures(2100) 1,790 3,100 2,000' 2,000 Park Improvement Fund(2300) 328,100 39,000 15,000 160,000 Ice Arena(2500) 380,836 368,200 373,917 395,725 Total Expenditures 973,991 614,791 730,546 923,723 Transfers _ Transfers In 127,850 115,000' 115,000 116,085 Transfers Out (12,639) 0 _ Total Transfers 115,211 115,000 115,000' 116,085 Change in Fund Balance (178,984) 72,065' 132,688 (33,032) Capital Projects Funds Summary 2019 Actual, 2020 Budget, 2021 Proposed and 2022 Proposed Company 2019 2020 2021 2022 Actual Budget Proposed Proposed Revenues Sanitary Sewer Trunk(3900) 67,610 33,540 28,985 27,985' Cable Communications Fund(4000) 184,327' 146,500 146,000 143,800' Road and Bridge/Street Reconstruction Fund(4100) 11,333 1,700 900' 600 Fire Capital Projects Fund(4300) 79,191 0 800 500 Stone Water Trunk(4400) 212,837' 8,600 13,200 8,400 RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 31,477' 18,900 15,900 15,500' Private Capital Projects(4600) 32,921 4,300 6,200 4,000' Permanent Imp Revolving Fund(4900) 6,923 1,400' 1,200 800' Gen'I Cap Equip Fund(5600) 33,763 2,500 7,000 4,500' Maintenance Fund(5700) 1,786,374 13,600 103,500 5,345,453'. Total Revenues 2,446,756' 231,040 323,685' 5,551,538 Expenditures Sanitary Sewer Trunk _ 0 0 Cable Communications Fund 100,236' 126,000 123,000 123,000 Road and Bridge/Street Reconstruction Fund(4100) 24' 0' Fire Capital Projects Fund(4300) 317,591 1,200,000 Stone Water Trunk Fund 59,010 0 RRC&Youth Hockey Cap Proj Donations(Rec Cap Proj Fund-4500) 51,038 9,600 24,500 1,220,000' Private Capital Projects 2,723 0 Permanent Imp Revolving Fund 0 0 Gen'I Cap Equip Fund(5600) 204,293 728,256 511,148 880,949' Maintenance Fund 4,533,035 1,084,607' 624,400 9,497,736 Total Expenditures 5,267,950 3,148,463 1,283,048' 11,721,685' Transfers Transfers In 2,657,554 2,668,522 1,537,506 7,260,995' Transfers Out 0 0' Total Transfers 2,657,554' 2,668,522 1,537,506 7,260,995' Change in Fund Balance (163,640) (248,901) 578,143 1,090,848 Liquor Store Funds Budget Summary 2019 Actual, 2020 Budget, 2021 Proposed and 2022 Proposed Company 2019 2019 2020 2020 2021 2022 Actual Budget Actual Budget Proposed Proposed Revenues Downtown(6110) 2,626,548 2,338,989 1,313,694 2,348,258 2,025,939 2,559,244' Pilot Knob(6115) 3,032,301 2,685,506 3,019,317 2,706,462 2,847,309 3,095,619 Total Revenues 5,658,849' 5,024,495 4,333,011 5,054,720 4,873,248' 5,654,863' Expenditures Downton(6110) 2,524,511 2,186,773 1,273,923 2,245,843 1,987,846 2,248,743'' Pilot Knob(6115) 2,732,724 2,351,316' 2,376,587 2,369,617 2,312,311 2,403,059 Ice Arena(2500) 380,836 352,744 279,594 368,200 373,917 395,725 Total Expenditures 5,257,236 4,538,089 3,650,510 4,615,460 4,300,157 4,651,802' Transfers Transfers In Transfers Out (134,088) (134,088) (102,339) (136,452) (365,410) (142,966) Total Transfers (134,088) (134,088) (102,339) (136,452) (365,410) (142,966) Change in Fund Balance 267,525' 352,318 580,162 302,808 207,681 860,095' 11/4/2020 10:39:45 AM Paw 1 of' Enterprise Funds Budget Summary 2019 Actual, 2020 Budget, 2021 Proposed and 2022 Proposed Company 2019 2020 2021 2022 Actual Budget Proposed Proposed Revenues Liquor Stores,Net of Cost of Goods Sold(6100:6115) 1,475,234 1,537,042 1,575,570 2,137,185' Sewer Operations(6200:6205) 2,991,034 2,326,614 2,423,687' 2,555,546 Solid Waste(6300:6302) 2,345,256 2,449,853 2,588,985' 3,025,065' Storm Water(6400:6405) 1,703,000 1,242,633 1,214,320' 1,266,050 Water(6500:6508) 3,363,005 2,407,694' 2,501,293 2,591,438 Streetlights(6600:6602) 233,437 224,900 225,200 224,800 Total Revenues 12,110,965 10,188,736 10,529,055 11,800,084' Expenditures Liquor Stores 1,073,621 1,097,782 1,002,479 1,134,124 Sewer Operations 2,312,354 2,573,895 3,057,417 2,623,468' Solid Waste 1,941,259 2,312,989 2,723,438 3,293,753' Storm Water 553,632 1,036,854 749,461 751,9531 Water 1,426,000 7,246,319 1,663,024 7,536,223' Streetlights 165,887 221,500 221,500 221,500' Total Expenditures 7,472,753 14,489,339 9,417,319 15,561,021 Transfers Transfers In 2,219,925 70,201 35,196 36,605' Transfers Out (3,084,324) (1,548,273) (1,694,385) (5,005,647)' Total Transfers (864,399) (1,478,072) (1,659,189) (4,969,042)' Change in Fund Balance 3,773,813' (5,778,675) (547,453) (8,729,979) CITY OF O Q 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 0-0a //Irl�lllll� O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Justin Elvestad, Fire Chief SUBJECT: Fire Training Shifts and Duty Crews (15 Minutes) DATE: November 12, 2020 INTRODUCTION Since the Covid-19 pandemic,the fire department changed its training schedule to separate firefighters and reduce exposer to each other. This training method has proved positive, it allows smaller groups to get more hands-on skills and allows for the stations to be staffed by a duty crew 27 hours per week with no increase in budget. I n some cases, we will save money by not paging an entire station for certain level of calls. DISCUSSION Staff would like to discuss continuing the current training duty crews,weekly schedule(Monday- Thursday, 27hrs) and adding additional duty crews for call coverage every Friday and Saturday nights from 4-10pm (additional 12hrs per week). With this proposed plan there would be a minimum of 3 personnel staffed at the station 39 hours per week. Mandatory trainings may result in additional "off duty" hours. These hours may be reimbursable from the Minnesota Board of Firefighter Training and Education (MBFTE). BUDGET IMPACT Staff believes the current 2021 budget will support the additional duty crew hours. ACTION REQUESTED Ask any questions you have on this issue and provide staff direction as appropriate. CITY OF O Q 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 �OIIII� O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Justin Elvestad, Fire Chief SUBJECT: Charitable Gambling Contribution (15 Minutes) DATE: November 12, 2020 INTRODUCTION Minnesota State Statute allows a city to adopt an ordinance requiring charitable gambling organizations to contribute ten percentage of their net profits from lawful gambling to the city for public safety purposes. Fire department staff would like to discuss this issue with the city council to get any feedback you have on this potential issue. DISCUSSION Staff would like to discuss a charitable gambling contribution ordinance,this ordinance would be an additional revenue source to help fund the future purchases of fire apparatus. All contributions would be saved for any large fire apparatus purchases. Any revenue from this ordinance would help to reduce the tax levy dollars spent on fire apparatus. BUDGET IMPACT N/A ACTION REQUESTED Ask staff and questions you may have on this issue and provide any guidance you feel is appropriate. ATTACHMENTS: Type Description D Backup Material Minnesota Statute 349.213 Office of the Revisor of Statutes 2019 Minnesota Statutes Authenticate PDF 349.213 LOCAL AUTHORITY. Subdivision 1. Local regulation. (a)A statutory or home rule city or county has the authority to adopt more stringent regulation of lawful gambling within its jurisdiction,including the prohibition of lawful gambling. (b)A statutory or home rule city or county may require a permit for the conduct of gambling exempt from licensing under section 349.166.The fee for a permit issued under section 349.166 may not exceed$100. (c)The authority granted by this subdivision does not include the authority to require a license or fee for a license or permit to conduct gambling by organizations,gambling managers,gambling employees,or sales by distributors or linked bingo game providers licensed by or registered with the board. (d)The authority granted by this subdivision does not include the authority to require an organization to make specific expenditures of more than ten percent per year from its net profits derived from lawful gambling. (e)For the purposes of this subdivision,net profits are gross profits less amounts expended for allowable expenses and paid in taxes assessed on lawful gambling. (f)A statutory or home rule charter city or a county may not require an organization conducting lawful gambling within its jurisdiction to make an expenditure to the city or county as a condition to operate within that city or county,except: (1)as authorized under section 349.16,subdivision 8,or 297E.02,or (2)by an ordinance requirement that such organizations must contribute ten percent per year of their net profits derived from lawful gambling conducted at premises within the city's or county's jurisdiction to a fund administered and regulated by the responsible local unit of government without cost to such fund.The funds must be disbursed by the local unit of government for(i)charitable contributions as defined in section 349.12,subdivision 7a,or(ii)police,fire,and other emergency or public safety-related services,equipment,and training,excluding pension obligations.A contribution made by an organization is not considered an expenditure to the city or county nor a tax under section 297E.02,and is valid and lawful.A city or county receiving and making expenditures authorized under this clause must by March 15 of each year file a report with the board,on a form the board prescribes,that lists all such revenues collected,interest received on fund balances,and expenditures for the previous calendar year.A home rule or statutory city or county making charitable contributions authorized under this clause must acknowledge financial contributions of organizations conducting lawful gambling to the community and to the recipients of the funds.This may occur in communications about the funds as well as in the distribution of funds. (g)A statutory or home rule city or county may by ordinance require that a licensed organization conducting lawful gambling within its jurisdiction expend all or a portion of its expenditures for lawful purposes on lawful purposes conducted or located within the city's or county's trade area.Such an ordinance must be limited to lawful purpose expenditures of gross profits derived from lawful gambling conducted at premises within the city's or county's jurisdiction,must define the city's or county's trade area,and must specify the percentage of lawful purpose expenditures which must be expended within the trade area.A trade area defined by a city under this subdivision must include each city and township contiguous to the defining city. (h)A more stringent regulation or prohibition of lawful gambling adopted by a political subdivision under this subdivision must apply equally to all forms of lawful gambling within the jurisdiction of the political subdivision,except a political subdivision may prohibit the use of paddlewheels. Subd.2. Local approval. The board may not issue an initial premises permit unless approval is received from: (1)the city council of the statutory or home rule city in which the organization's premises is located;or (2)the county board of the county where the premises is located. The organization must submit a resolution from the city council or county board approving the premises permit.The resolution must have been adopted within 90 days of the date of application for the new permit. Subd.3. Local gambling tax. A statutory or home rule charter city that has one or more licensed organizations operating lawful gambling,and a county that has one or more licensed organizations outside incorporated areas operating lawful gambling,may impose a local gambling tax on each licensed organization within the city's or county's jurisdiction. The tax may be imposed only if the amount to be received by the city or county is necessary to cover the costs incurred by the city or county to regulate lawful gambling.The tax imposed by this subdivision may not exceed three percent per year of the gross receipts of a licensed organization from all lawful gambling less prizes actually paid out by the organization.A city or county may not use money collected under this subdivision for any purpose other than to regulate lawful gambling.All documents pertaining to site inspections,fines,penalties,or other corrective action involving local lawful gambling regulation must be shared with the board within 30 days of filing at the city or county of jurisdiction.A tax imposed under this subdivision is in lieu of all other local taxes and local investigation fees on lawful gambling.A city or county that imposes a tax under this subdivision shall annually,by March 15,file a report with the board in a form prescribed by the board showing(1)the amount of revenue produced by the tax during the preceding calendar year,and(2)the use of the proceeds of the tax. History: 1984 c 502 art 12 s 18: 1986 c 467 s 25; 1987 c 327 s 21; 1988 c 705 s 1; 1989 c 209 art I s 35 1989 c 334 art 2 s 44,45; 1989 c 335 art 1 s 220; 1990 c 590 art I s 37 1991 c 199 art 2 s 1; 1991 c 336 art 2 s 34 1994 c 633 art 2 s 19•art 5 s 96; 1994 c 633 art 2 s 2: 1995 c 264 art 17 s 11; 1998 c 322 s 6;2000 c 300 s 8;2001 c 96 s 13;2005 c 166 art 1 s 36 2006 c 205 s 28;2009 c 124 s 58.59;2016 c 139 s 12 Copyright©2019 by the Revisor of Statutes,State of Minnesota.All rights reserved. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ■IIIIII�I O Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT. Draft Ordinance Discussion-Neighborhood Picketing(15 Minutes) DATE: November 12, 2020 INTRODUCTION Recently the issue of targeted picketing in residential neighborhoods has been an issue in a number of metro suburbs. The police chief and I would like to discuss this issue with the city council to see what your thoughts are on this topic. DISCUSSION Over the summer the issue of targeted picketing in residential neighborhoods was an issue in a number of metro cities. As a result of the civil unrest that occurred this summer, cities are discussing the possibility of implementing ordinances that prohibit targeted picketing in residential neighborhoods. Police Chief Rutherford and I would like to discuss this issue with the city council and provide you an opportunity to share your thoughts. I have attached the ordinance that the City of Hugo passed in September for your review. This is just one example of how this issue is being dealt with. BUDGET IMPACT NA ACTION REQUESTED Discuss this issue amongst the city council and provide any relevant direction to city staff. ATTACHMENTS: Type Description o Cover Memo Hugo Ordinance ORDINANCE NO.2020-501 CITY OF HUGO WASHINGTON COUNTY,MINNESOTA AN ORDINANCE OF THE CITY OF HUGO,MINNESOTA, RELATING TO AND REGULATING TARGETED PICKETING IN RESIDENTIAL NEIGHBORHOODS IN THE CITY OF HUGO WHEREAS,the City Council finds that targeted residential picketing in front of or about a residential dwelling causes emotional distress to the dwelling occupants, obstructs and interferes with the free use of public rights-of-way and has as its object the harassment of the dwelling occupants; and, WHEREAS, the City Council further finds that, without resorting to targeted residential picketing, ample opportunities exist for those otherwise engaged in targeted residential picketing to exercise constitutionally protected freedom of speech and expression; and, WHEREAS, the protection and preservation of the home is the keystone of democratic government; the public health and welfare and the good order of the community require that members of the community enjoy, in their homes and dwellings, a feeling of wellbeing, tranquility and privacy and, when absent from their homes and dwellings, carry with them the sense of security inherent in the assurance that they may return to the enjoyment of their homes and dwellings; the practice of picketing before or about residences and dwellings causes emotional disturbance and distress to the occupants, obstructs and interferes with the free use of public sidewalks and public ways of travel; such practice has as its object the harassing of such occupants and,without resort to such practice, full opportunity exists, and under the terms and provisions of this section, will continue to exist for the exercise of freedom of speech and their constitutional rights; and that the provisions hereinafter enacted are necessary for the public interest to avoid the detrimental results herein set forth. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA,HEREBY ORDAINS AS FOLLOWS: SECTION 1. DEFINITIONS. For the purpose of this section, the term "targeted residential picketing"means; (1) Marching, standing, or patrolling by one or more persons directed solely at a particular residential building in a manner that adversely affects the safety, security, or privacy of an occupant of the building;or (2) Marching, standing, or patrolling by one or more persons which prevents an occupant of a residential building from gaining access to or exiting from the property on which the residential building is located; or (3) Standing,marching,patrolling or picketing by one or more persons focused in front of or adjacent to a particular residential dwelling without the consent of that dwelling's occupants. SECTION 2. PURPOSE. The city has an interest in the protection of residential privacy, the wellbeing and tranquility of the home, and protecting citizens from unwanted speech when they are a captive audience within their homes. The city council finds that, without resorting to targeted residential picketing, ample opportunities exist for those otherwise engaged in targeted residential picketing to exercise constitutionally protected freedoms of speech and expression. SECTION 3. PROHIBITED ACTIVITY. No person shall engage in targeted residential picketing within the City. SECTION 4. VIOLATION/PENALTY. Every person convicted of a violation of any provision of this Ordinance shall be guilty of a misdemeanor. SECTION 5. SEVERABILITY. Should any section, subdivision, clause or other provision of this Ordinance be held to be invalid by any court of competent jurisdiction, such decision shall not affect the validity of the Ordinance as a whole, or of any part thereof, other than the part held to be invalid. SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect and be in force from and after its passage and publication. ADOPTED BY THE HUGO CITY COUNCIL ON SEPTEMBER 8,2020. 1;rze--�46 Tom Weidt,Mayor ATTEST: Michele Lindau, City Clerk CITY OF O Q 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 `l�" O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Downtown Liquor Store Discussion (15 Minutes) DATE: November 12, 2020 INTRODUCTION The city operates two municipal liquor stores, our downtown store and our Pilot Knob store. Our downtown store has been located in Farmington City Center since 2005. The impact of the pandemic, our struggles to hire part-time staff and the loss of the grocery store anchor at City Center have all had a negative impact on the downtown store. DISCUSSION The city has operated our downtown store at its current location since 2005. Over the years the store has been surrounded by a number of other tenants that helped drive traffic in the area including a grocery store, hardware store,gym,gymnastics studio and more. At the start of 2020,the grocery store closed and the gymnastics studio was replaced by the post office. The COW D-19 pandemic has also had a negative impact on our downtown store. The attached chart show profit/loss by store through the month of September 2020. The numbers included are before transfers. The downtown store has lost$89,925 through the month of September 2020. This is through a combination of being closed due to COVI D, reduced sales and continued reduced hours. Our current lease for the downtown space runs through July 31, 2021. 1 want to make the city council aware that if there is a desire to get out of this lease,the city must provide a six-month notice to the property owner. This would make this decision due by the end of January 2021. BUDGET IMPACT TBD ACTION REQUESTED I bring this issue to your attention now due to the continued struggles of the downtown store and the lease issue. I want to provide the city council with an opportunity to discuss this issue and provide direction to staff. ATTACHMENTS: Type Description D Cover Memo 2020 Liquor Stor Profit/Loss Chart Net Profit/Loss by Liquor Store 2020 Before Transfers PK --0-DT COMBO 333,88 $269,910 $242,78 224,333 $177,222 $167,809 134,307 $99,174 $92,094 66,095 AA $51,095 $54,817 JAN FEB 15,000 APR MAY JUN JUL AUG - 44,357