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Home My WebLink About12.14.09 Work Session Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promisingfuture. AGENDA CITY COUNCIL WORKSHOP DECEMBER 14, 2009 6:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 2. APPROVE AGENDA 3. CITIZEN RESPONSES (not mailed) 4. DISCUSS 2010 BUDGET 5. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session, all discussions shall be consideredfact-finding, hypothetical and unofficial critical thinking exercises, which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of aformal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as aformal expression of the City's position on any given matter, Bonnie Andrusick Budget Comments December 7, 2009 Comment Response She received a tax statement showing 2009 and City Administrator Herlofsky stated the rate proposed 2010 property taxes and the that was used by the County was the original breakdown of how much goes to each entity. rate that the City adopted in September which From the 2008 valuation to 2010 her property was 50.59%. With the reductions that have value dropped 15.3%. Over that three year been made, we are at 49.24%. We decreased period her total property tax went down 5.6%. the tax rate by a little over 1 %. The County portion dropped 10.3%. The School District 192 voter approved levies dropped 17.8%. The City portion increased $5.69 from 2009 to 2010, not a lot, but certainly not in the same direction as the property valuation. She wanted to hear the City's justification for their tax budget. Councilmember Fogarty asked staff to send her I prefer to wait until the City Council approves what the new estimate will be so she knows the levy. what the budget decisions did to her property taxes. Cmuller/CouncillAndrusick Comments 12-7-09 Mark Dixon Comments December 7, 2009 Council Meeting Question Answer Mr. Mark Dixon, 608 Tamarack Trail, member of a homeowner's association, has contacted This item is being researched and a report will the City regarding the size of garbage cans. follow. They all have the large cans and were told they cannot go to the small size because of billing issues. He asked Council how they can pursue using smaller cans for their residents. Cmuller/Council/Dixon Comments 12-7-09 Colin Garvey Comments December 7, 2009 Council Meeting Question Answer Mr. Colin Garvey, Castle Rock Development Company, received a letter in November A weed notice was sent to the Dakota County asking him to mow his development, which he CDA for the Twin Ponds single family homes has mowed four or five times this year. In on 7-7-09. It was signed for by the CDA on 7- October it was very wet and he tried to mow, 8-09. The single family lots were inspected for but could not finish. The City mowed the mowing on 7-20-09 and they were mowed. development and he received a bill from the City. He understood the process, but had a problem with the developments around him, including City property, that has been mowed once in five years. Now there are weeds throughout all the developments. Mr. Garvey stated the CDA development has never mowed their lots and currently they are not mowed. He had pictures of numerous City properties that are not mowed. He asked what the policy IS. He sold some lots to a developer a couple years ago and he sold the lots. One of the Please see attached Ordinance 11-4-4 (D) homeowners landscaped their yard and put Easements. much around the transformer which is in the easement. There are thousands of houses, even I visited the site Mr. Garvey refers to. I City property, that has landscaping in their informed the developer what the ordinance said easements. The City would not release this and would not make an exception. I am not person's money until he removed the mulch aware of the City being inconsistent in from around the transformer. Mr. Garvey felt applying this ordinance. this was unacceptable. The City cannot tell Peter J. Herlofsky, Jr. one person they cannot do this when there are thousands, even the City, that have landscaping in easements Cmuller/Council/Garvey Comments 12-7-09 11-4-4: EASEMENTS: (A) Width And Location: An easement for drainage and utilities at least ten feet (1 0') wide shall be provided in the front and rear yard. An easement for drainage and utilities at least five feet (5') wide on either side of an abutting property line shall be provided in the side yards. If necessary for the extension of water main or sewer lines or similar utilities, easements of greater width may be required along lot lines or across lots. (Ord. 008-583, 5-5-2008) (8) Continuous Utility Easement Locations: Utility easements shall connect with easements established in adjoining properties. These easements, when approved, shall not thereafter be changed without the approval of the city council after a public hearing. (C) Guywires: Additional easements for pole guys should be provided, where appropriate, at the outside of turns. Where possible, lot lines shall be arranged to bisect the exterior angle so that pole guys will fall along side lot lines. (Ord. 002-470, 2-19-2002) (D) Drainage And Utility Easements: No structures, landscape material, or impervious surfaces, with the exception of turf grasses, are allowed within a front, side or rear yard drainage and utility easement with the exception of fences installed on the property line and lot frontage trees placed eight feet (8') behind the property line in front yard drainage and utility easements. Any nonconforming improvements within the easement are placed at the owner's own risk. (Ord. 008-583, 5-5-2008) Response to David Pritzlaff Comments December 7, 2009 Council Meeting Question Answer Citizen Comments Mr. David Pritzlaff, 20255 Akin Road, at the last meeting he asked Mayor Larson to respond Mayor Larson will decide how to respond. personally to three questions: - Why did you not take comment after a three hour budget workshop? - Tell people when you will and will not take comment at a public meeting. - Do you value the taxpayer's thoughts? Mr. Pritzlaff stated with the Finance Director position open, maybe now would be a good The current proposed 2010 budget already time for consolidation of Finance/ reflects a reduction. Administrative Services Director or FinanceIHuman Resources Director combined. He asked where is the $15,000 - $20,000 extra budgeted for the Finance Director than what the paper states we would actually pay now for that position. 2010 Budget Comments Street Light Utility - Starting from the beginning where Council was given a budget $149,323 is the budgeted amount for 2009. highlight report, expenditures for the City's This includes amounts budgeted for repairs and street lights are proposed to be removed from services. In 2008 the actuals were $158,767. the general fund and set up as an enterprise Based on actuals for 2008, the number fund. The street light utility charge would be budgeted for 2010 is $155,000 which would on all residential and commercial utility bills include dollars to cover repairs and services. on January 1,2010. This shift of expenses reduces general fund expenditures by $155,000. By making this utility fund, all properties including tax-exempt properties within the City will pay for the lighting. According to the City's response he received on his budget questions, on page 103 of the budget the reduction of$149,323 is shown. Why the difference in numbers? A reduction at the August 26,2009, meeting the Finance Director stated the electric rate The amount budgeted for 2009 was a guess for class will be reduced for 2010 and beyond. On City Hall. The amount budgeted for 2010 is page 71 electric for Police Administration is based on actuals to date. going up $1,000. On page 55 electric for City Hall is going up from $15,000 to $30,000. A 100% increase for City Hall when three other departments stay the same. Why is this so much more? Since this will become an enterprise fund and we leave about $16,000 in the budget from the Repairs and service. electricity he talked about and charge $24 for the 6,000 utility bill holders, which amounts to $144,000 which will increase as new homes are built which results in more revenue. How will the additional revenue be used or accounted for? Now let's talk about who pays for street light utility. First, one reason we are doing a street See answer below. light utility fee is to get all tax-exempt properties to pay. Councilmember Fogarty stated at the August meeting that a large portion ofthe City is tax-exempt. Explain that since we have 6,000 utility bill holders. He had an updated list of properties from the last meeting. Regarding the issue of apartments, 13 properties versus 461 households within those units. A potential 461 units times $24 equals $11,064 versus 13 utility bills times $24 equals $312; a difference of $1 0,572. Do they benefit as much as he does and get to pay a fraction of the cost? The Finance Director stated at the last meeting This statement has been corrected. We have we do not want to discourage apartments. So changed the issue and it will be established in you will charge them based on a multiplier that an equal way. Each utility bill will receive the is used for storm water charges. Can someone $6/quarter or $24/year. There will be no explain how we charge for storm water? multiplier used; it will be equal. Mr. Pritzlaff stated when the Finance Director The original estimate of $145,000 for revenues said it won't be at the high end or the low end, based on 6,100 utility bills will be the basis for it will be in the middle, it will be at the low the revenues the City will receive for street end? light utilities. Cmuller/CouncillPritzlaff Comments 12-7-09 2 Mr. Pritzlaff stated a property with .8 acre pays how much? This property has 32 units times See answer above. $24 and should be $768. It might only have to pay about half as the Finance Director stated, $384. The City response he received is that one charge for all utility accounts will be $24. What is it exactly; $24/year or about half. Why not each household? Can Council tell him how many tax-exempt properties we gain by changing to street light Approximately 20 properties receiving utility utility fee versus leaving $155,000 in the bills. budget? He has a list of tax-exempt properties which took less than a half hour looking at the City's Community Guide book. We gain ten schools, which he will pay for anyway. We gain nine churches as we all pay as we attend. Weare gaining nothing. He had a list of 42 properties that do not have There is water, sewer, and storm water. He has water and sewer charges. Will they still be been told that storm water is charged to charged $24 due to a utility bill for solid everyone throughout the City. That will be the waste? basis for determining the $24/year. Mr. Pritzlaff stated no matter what, properties on the west and south side of the City that do Yes. not have water and sewer hook up, still pay a storm water charge and that will be classified as a utility bill and they will pay the $24/year? Solid Waste Increase - Mr. Pritzlaff stated solid waste is also an increase Council wants to put Solid Waste is an enterprise fund. The to the taxpayers. This is also an enterprise difference is added to the fund balance. fund. On page 199 of the budget, it shows total revenue for 2009 of $1 ,871 ,800 and total expenditures of$I,715,561; a difference of $156,239. Ifwe subtract the transfers out which is the general fund and debt services of $112,559; a difference of $43,680 which would be profit we are getting for solid waste from taxpayers with no benefit for 2009. In 2010 we show $2,001,800 not including other revenue and expenditures of$I,874,388; a difference of $127,412, which after transfers out are subtracted of$115,662; $11,750 is used for what purpose? Cmuller/Council/Pritzlaff Comments 12-7-09 3 Not including other revenues of about $70,000 like in 2009, it was stated a 2% increase will take place on solid waste. On page 200 of the budget, there are three different increase rates proposed. The newspaper had quoted a 30 gallon container was going from $44 to $46. He received a response to his question from the last meeting stating staff is proposing a $2/qtr increase, not a 2% increase for sewer rates on each 1,000 gallons above 10,000 gallons and a $2/qtr increase in solid waste fees for residential levels of 180 gallons. On page 200 it states a 2% rate increase will be proposed for 2010 to cover increased costs of disposal previously subsidized by the County funding. Where it states in 2009 a 30 gallon container costs $44, in 2010 it will go to $45; only $1; a 60 gallon going from $53 to $54.50 and a 90 gallon going from $62 to $63.50. Both indications are that we are talking 2%, not $2. He questioned it when the newspaper stated a 30 gallon container would go from $44 to $46, that equals a 4.54% increase, not 2% nor $2. Mr. Pritzlaff stated at the last budget workshop, Councilmember Fogarty asked staff if it was still feasible to recycle due to these increases. The answer was yes. The question should have been, is it still feasible for the City to be in the trash business if we only charge for our expenditures and would the expenditures be less if contracted out to a hauler? Solid Waste Rates - The proposed 2010 fee schedule shows a $2/quarter increase up to 180 gallons. Residential Sewer Rates - The proposed 2010 fee schedule shows an increase of $.40/1 ,000 gallons above 10,000 gallons. Cmuller/Council/Pritzlaff Comments 12-7-09 4 (/) ~ .... () ca ca 0. 0. E E x x ca ca .... .... "0 "0 C C ca ca (/) (/) c c 0 0 +:; +:; ca ca ::J ::J ca ca > > 0 0 ~ ~ 0 0 N N (J) (J) 0 0 0 0 N N 00 CO (/) 0 0 .... 0 0 C Q) N N E ,.... ,.... .... (/) 0 0 ::J 0 0 ~ N N <( ...-... -- -- .?:- CO~ CO~ ..... 00 00 ~ (ij aCD aClO c >< N~ N~ ca Q) (/)e"! (/)~ ~ a.. CI) Q)c:n Q)O ca .... 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CD a.~ 0 .s~ 6 E 1S c- ~ rn '- ~2B 'Q ~ 0 ;;. lD~ ~cg '0.2" a::slB 'Q 0..J ~~~ S a. I .l!l :ac8 l!! Em..c: CD moo ~ a. a::..JCIJ en 0 .., 0 S' 0 ~ N 0 0 0 .., 0 0 0 vi 0 .0 .0 co 10 t:.. ..... 10 ..... ai +I CD fit 0 0 fit CD .c 0 a:: tJ) CIJ "C ~ C 10 L. lD 0 E CD ~ 0 l!! '- t! ~ ~ +I i:: a:: ~ 0 l5 CD 0 'fl 0) ~ .E ::J OJ ::J :a C" "C :J ~ CD E E "'C a:: 10 "C a:: .g ~ ..J i '- - .E '- Gl C ~ m ~ CD ~ rn ..J ::J "C C ~ C" ~ CD l!! l!! 0 0 a:: 0 I- Z ..... 0 N QC ~ ...... = ~ sa -= ~ = t: < t ~ ~ OJ) ] = ~ ~ ] = M ~ Q) - ~ ~ ~ E-t ~ 0 ..... = 0 N = Q) ~ ~ = .~ Q) ~ ..... = ~ .0 .~ ~ <- Q) ~ ..... ..... ~ 0 ~ U '.p 0 ~ ~ ..... ..... 0 0 N = l:I.l I-< - ~ ~ tE ~ ~ ] ~ 0 ~ ~ ~ .... 0 ~ 1 ..... 0 N < .s .s OJ) .~ P- I 0 Q) ~ g. ~ ~ ~ 0 .... .... -a -a 0 ..... ..... ~ 0 0 l:I.l l:I.l ::E ~ ~ ..... N C") DRAFT City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Adopt Resolution - Approve 2010 Tax Levy and Budget DATE: December 21,2009 INTRODUCTION The City Council adopted a proposed tax levy and budget for 2010 with Resolution R40-09 at the Council meeting on September 8, 2009. The tax levy and budget must now be finalized in order that it may be certified to the County Treasurer/Auditor before December 28,2009. DISCUSSION The required public comment took place at the City Council meeting of December 7, 2009. Residents and other concerned citizens were able to attend and express their opinions on the proposed levy and budget. Certification of the tax levy and adoption of the 2010 budget must now take place in order that tax revenues may be collected from all taxable property in Farmington. ACTION REQUESTED 1. Adopt the attached resolution setting the 2010 Collectible Property Tax Levy. 2. Adopt the attached resolution approving the 2010 Budget. Respectfully submitted, Peter 1. Herlofsky, Jr. City Administrator DRAFT RESOLUTION NO. R -09 ADOPTING THE TAX LEVY FOR THE YEAR 2010 COLLECTIBLE Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota was held in the Council Chambers of said City on the 21 st day of December 2009 at 7:00 p.m. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, the City of Farmington is annually required by State Law to approve a resolution setting forth an annual tax levy to the Dakota County Auditor; and, WHEREAS, Minnesota Statutes currently in force require certification of the tax levy to the Dakota County Auditor on or before December 28, 2009; and, WHEREAS, summary details of the proposed budgets are contained in the budget submitted to the City Council. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Farmington, that the following sums of money be levied in 2009, collectible in 2010, upon the taxable property in said City of Farmington for the following purposes: General Fund Debt Service (see attached schedule) Fire Levy Gross Levy Less: Fiscal Disparities Net Levy This resolution adopted by recorded vote of the Farmington City Council in open session on the 21st day of December, 2009. Mayor Attested to the _ day of December 2009, City Administrator SEAL DRAFT 2010 BUDGET Summary of Debt Service Levy to be Attached and Become part of Resolution R -09 Total $ 60,000 400,000 249,919 200,000 144,120 59,450 733,700 77,200 $1,924,389 Wastewater Treatment bonds of 1995 Public Project Revenue Bonds of2001A Improvement Bonds of2003A Improvement Bonds of 2005B Capital Improvement Plan Bonds 2005C Public Safety Revenue Bonds 2007 Capital Improvement Plan Bonds 2007 A GO Improvement Bonds of 2006A DR f1 RESOLUTION NO. R -09 ADOPTING THE 2010 BUDGET Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 21 st day of December, 2009 at 7:00 p.m. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, the City of Farmington Ordinance Chapter 7, Section 1-7-3 requires that an annual budget be submitted to the City Council which accurately reflects the financial needs of the City organization; and, WHEREAS, Minnesota Statutes require approval of a resolution setting forth an annual budget and tax levy to the Dakota County Auditor on or before December 28, 2009; and, WHEREAS, Resolution R81-08 adopted the 2009 operating budget and resolution R16-09 revised the 2009 budget. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Farmington, that the 2010 operating budget shall be adopted as follows: 2010 General Fund Revenues: Taxes Licenses Permits Fines Intergovernmental Revenue Charges for Services Investment Interest Miscellaneous Transfers In Total $7,194,035 33,005 283,000 100,000 407,140 600,500 282,281 65,000 331.500 9.296.461 Expenditures: Legislative Administration Elections Communications City Hall Human Resources/Information Tech Finance Planning Community Development 91,515 614,563 23,725 83,912 150,524 262,540 459,103 252,363 166,206 Police Administration Patrol Services Investigation Services Emergency Management Fire Rescue Engineering Building Inspections Streets Snow Removal Natural Resources Park Maintenance Recreation Programs Transfers Out DRAFT Total 789,545 2,229,451 738,331 4,900 755,288 44,821 274,061 303,777 593,791 203,314 96,068 614,563 369,100 175.000 9.128.757 DRAFT 2010 Other Funds Revenues: EDA General Fund Police Forfeitures Fund Park Improvement Fund Recreation Operating Fund Arena fund Total Special Revenue Debt Service Funds Total Debt Service Sanitary Sewer Trunk Fund Capital Acquisition Fund Road Const. & Maint. Fund Municipal Building Fund Private Capital Projects Fund Storm Sewer Trunk Fund Total Capital Projects Liquor Fund Sewer Fund Solid Waste Fund Storm Water Utility Fund Water Fund Total Enterprise Funds Fleet Operations Employee Expense Information Technology Total Internal Service Fund Expenditures: EDA General Fund Police Forfeitures Fund Park Improvement Fund Recreation Operating Fund Arena fund Total Special Revenue Debt Service Funds Total Debt Service Sanitary Sewer Trunk Fund Capital Acquisition Fund Road Const. & Maint. Fund Municipal Building Fund Private Capital Projects Fund Storm Sewer Trunk Fund Total Capital Projects DR FT 2010 Liquor Fund Sewer Fund Solid Waste Fund Storm Water Utility Fund Water Fund Total Enterprise Funds Fleet Operations Employee Expense Information Technology Total Internal Service Fund This resolution adopted by recorded vote of the Farmington City Council in open session on the 21st day of December, 2009. Mayor Attested to _ day of December 2009. City Administrator SEAL