HomeMy WebLinkAbout09.05.23 Work Session Packet
AGENDA
Work Session Meeting
5:00 PM - Tuesday, September 5, 2023
Farmington City Hall, Conference Room
170
Page
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSSION ITEMS
3.1. Facility Condition Assessments Presentation (60 Minutes)
Listen to the presentation and ask any questions you have. This item is
for discussion only.
Agenda Item: Facility Condition Assessments Presentation (60 Minutes)
- Pdf
2
2024 Tax Levy and Utility Rate Study Update - (45 Minutes)
Ask questions and provide guidance to Staff.
Agenda Item: 2024 Tax Levy and Utility Rate Study Update - (45
Minutes) - Pdf
3 - 5
4. CITY COUNCIL COMMITTEE UPDATE
5. CITY ADMINISTRATOR UPDATE
6. ADJOURN
Page 1 of 5
WORK SESSION AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Facility Condition Assessments Presentation (60 Minutes)
Meeting: Work Session - Sep 05 2023
INTRODUCTION:
City Council, at its June 5, 2023 meeting, approved a Professional Services Agreement (PSA) with
Kraus-Anderson to complete Facility Condition Assessments on eight (8) City facilities. This included
City Hall, Fire Station 1, Fire Station 2, Central Maintenance Facility, First Street Garage, Police
Station, Schmitz-Maki Arena, and Rambling River Center.
DISCUSSION:
The kick-off meeting for the project was held in late June to introduce City Staff to the Facility
Condition Assessment team, review the proposal / scope of the Facility Condition Assessment, and
walk City Staff through the overall process. The site interviews and comprehensive review of the
facilities happened over three days in late July. The onsite visits reviewed the property and existing
building systems conditions to include, but not limited to, site work, building structure, foundation,
exterior enclosures, roofs, fire protection, plumbing, HVAC, and electrical.
Kraus-Anderson is ready to present the preliminary findings and cost estimates. City Staff
representing Parks and Recreation, Police, Fire, and Administration will be meeting with the Kra us-
Anderson Facility Condition Assessment team on September 1 to review the findings and prepare for
the work session.
Tim Kittila from Kraus-Anderson will be attending the work session to present the preliminary findings
of the Facility Condition Assessments on the aforementioned City facilities. Following the internal
review and work session, Kraus-Anderson will refine the findings, prioritization and criticality of items,
and potential costs savings for completing projects simultaneously. The final r esults of the Facility
Conditions Assessments and a detailed 5 to 10 -year plan will be presented at a future meeting.
BUDGET IMPACT:
To be determined based on the findings of the Facility Condition Assessments. The findings will guide
the development of the Capital Improvement Fund (CIP) for Building Maintenance.
ACTION REQUESTED:
Listen to the presentation and ask any questions you have. This item is for discussion only.
Page 2 of 5
WORK SESSION AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Chris Regis, Finance Director
Department: Finance
Subject: 2024 Tax Levy and Utility Rate Study Update - (45 Minutes)
Meeting: Work Session - Sep 05 2023
INTRODUCTION:
An update of the 2024 Budget and Tax Levy and the Utility Rate Study.
DISCUSSION:
At the conclusion of the Utility Rate Study presentation, the City Council directed Staff to increase
the Water Fund rates by 3% and to change the funding for a new water tower from 50% cash and
50% bonding to all cash. These changes have been incorporated into the Utility Rate Study.
Staff will update the council on preliminary budget adjustments.
BUDGET IMPACT:
The 2024 budget is the financial framework for the next fiscal year.
The changes made to the water portion of the rate study will affect t he operations and cash balance
of the water fund.
ACTION REQUESTED:
Ask questions and provide guidance to Staff.
ATTACHMENTS:
Comparison of Utility Rates
Page 3 of 5
Utility Rate Comparison
Water Utility Rates
2023 Recommended % 3%
Fee Rate 2024 Rate Increase Increase
Base Rate 16.38 16.54 0.98%16.87
Tier 1 (Up to 20,000 gallons) - per 1,000 gallons 1.82 1.84 1.10%1.87
Tier 2 (20,001 to 40,000 gallons) - per 1,000 gallons 2.72 2.75 1.10%2.80
Tier 3 (Over 40,000 gallons) - per 1,000 gallons 3.62 3.66 1.10%3.73
Irrigation Meters - per 1,000 gallons 3.62 3.66 1.10%3.73
Sewer Utility Rates
2023 Recommended %
Fee Rate 2024 Rate Increase
Residential/Multifamily Base Rate (Includes first 10,000 gallons)41.94 51.00 21.60%
Commercial Base Rate (includes first 20,000 gallons)90.23 102.00 13.04%
Residential/Multifamily Volume Rate (per 1,000 gallons)5.66 6.63 17.14%
Commercial Volume Rate (per 1,000 gallons)5.99 6.63 10.68%
Storm Water Utility Rates
2023 Recommended %
Fee Rate 2024 Rate Increase
Per Quarter per Residential Equivalency Unit (REU)23.43 25.25 7.75%
Estimated Cash Balances 12/31/2024 12/31/2025
Water with 1% Rate Increase 11,395,740 5,808,180
Water with 3% Rate Increase 11,440,704 5,944,869
Sewer 1,497,586 1,248,617
Storm Water 2,097,043 1,878,005
Page 4 of 5
Residential Bill Impact
3% Water Rate Increase
Actual Actual
2022 2023 2024 2025 2026 2027
Quarterly Low Volume Residential Bill
10,000 gallons water and 8,000 gallons sewer
Water 32.90$ 34.58$ 35.62$ 36.69$ 37.79$ 38.92$
Sewer 39.94 41.94 51.00 61.20 71.60 82.34
Storm 22.31 23.43 25.25 27.20 29.31 31.58
Total 95.15$ 99.95$ 111.87$ 125.09$ 138.70$ 152.84$
Percent Increase 5.0%11.9%11.8%10.9%10.2%
Amount Increase - per quarter 4.80$ 11.92$ 13.22$ 13.61$ 14.14$
Actual Actual
2022 2023 2024 2025 2026 2027
Quarterly Medium Volume Residential Bill
24,000 gallons water and 12,000 gallons sewer
Water 60.56$ 63.66$ 65.57$ 67.54$ 69.57$ 71.66$
Sewer 50.72 53.26 64.26 77.11 90.22 103.75
Storm 22.31 23.43 25.25 27.20 29.31 31.58
Total 133.59$ 140.35$ 155.08$ 171.85$ 189.10$ 206.99$
Percent Increase 5.1%10.5%10.8%10.0%9.5%
Amount Increase - per quarter 6.76$ 14.73$ 16.77$ 17.25$ 17.89$
Proposed
Proposed
Page 5 of 5