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HomeMy WebLinkAboutCCAgenda_03Feb12CITY OF FALCON HEIGHTS Regular Meeting of the City Council City Hall 2077 W. Larpenteur Ave. AMENDED AGENDA February 12, 2003 A. CALL TO ORDER: 7:00 PM B. ROLL CALL:GEHRZ KUETTEL LAMB LINDSTROM TALBOT WORTHINGTON SHEA KODLUBOY ATTORNEY ENGINEER C. COMMUNITY FORUM: D. APPROVAL OF MINUTES: January 22, 2003 (TAB #1) E. PUBLIC HEARINGS: None scheduled • F. CONSENT AGENDA: 1. General Disbursements through February 5, 2003 (TAB #2) in the Amount of $14,773.41 Payroll, 01/15/03-01/30/03: $14,023.43 2. License Renewals for 2003 (TAB #3) 3. Full Call On Remaining Outstanding Debt on the General Obligation Improvement Bonds, Series 1993, dated May 1, 1993 (TAB #4) 4. Appointments to the Neighborhood Commission (TAB #5) 5. Appointment of City Attorney for 2003 (TAB #6) 6. Request to Approve Extension of the Recycling Contract with E-Z Recycling for One Year, Commencing on February 28, 2003 (TAB #7) 7. Approval of the 2002 Pay Equity Report-ADDED ON 2/12/03 G. POLICY AGENDA: 1. Consideration of the Preliminary Plat for the SE Corner Redevelopment (TAB #8) FALCON HEIGHTS CITY COUNCIL AGENDA _2_ February 12, 2003 G. POLICY AGENDA: (continued) 2. Consideration of an Amendment to the City's Comprehensive Plan (TAB #9) 3. Consideration of Ordinance Amendment No. 03-02 Providing for a Farmer's Market Interim Use Permit at 2025 West Larpenteur (TAB #10) H. REPORTS FROM COUNCIL MEMBERS: INFORMATION AND ANNOUNCEMENTS: J. ADJOURNMENT • r~ u CITY OF FALCON HEIGHTS COUNCIL MINUTES January 22, 2003 Mayor Sue Gehrz convened the regular City Council meeting at 7:00 PM. PRESENT: Council members Laura Kuettel, Robert Lamb and Peter Lindstrom. Also present: City Administrator Heather Worthington, City Attorney Roger Knutson and Deputy Clerk Mary Shea Kodluboy. ABSENT: Council member Richard Talbot COMMUNITY FORUM: There was no commentary from the audience. APPROVAL OF MINUTES: The Council minutes dated January 8, 2003 were unanimously approved as submitted. PUBLIC HEARINGS: None scheduled CONSENT AGENDA: Council member Lamb moved that the Consent Agenda, outlined below, be approved as submitted. The motion was unanimously approved. 1. General Disbursements through January 17, 2003: $126,677.93 Payroll: January 1, 2003 -January 15, 2003: $ 12,469.46 2. License Renewals for 2003 The Council, to encourage residents to patronize local businesses, read aloud the names of the businesses renewing their City licenses for 2003. 3. Designation of Stephen Westerhaus as the City's Certified Building Official to the Commissioner of Administration 4. Resolution 2003-02 Approving a 2% Standard Compensation Increase for Regular Employees in 2003 5. Appointment of Terry Maurer, Howard R. Green, as City Engineer for 2003 6. Appointment of KDV, Kern DeWenter Viere, as the City Auditor for 2003 • FALCON HEIGHTS CITY COUNCIL MINUTES _2_ January 22, 2003 POLICY AGENDA: Reconsideration of Waiver on Tort Liability Limits for the LMCIT Council member Lamb said that he had asked that the waiver on tort liability limits for the LMCIT be reviewed again on tonight's agenda, and he gave an oral review of a written statement he had provided for the Council packet. At the January 8 meeting, the Council reviewed a proposal to waive the tort liability limit; the review and action were required in order to comply with LMCIT requirements for insurance purposes. Staff proposed that the Council not waive the limit and this proposal was backed by an opinion from the City Attorney recommending the "no waiver" position. Neither the proposal nor the recommendation contained an in-depth pro-con analysis nor did they include costs of either position. The Council acted on the proposal with the proviso that they would further analyze the issue and its attendant costs by the January 22nd meeting to ensure that the decision to not waive the limit was the right thing to do. Subsequent to the January 8 meeting, the Council received cost data and a very well written, thoughtful analysis issued by the LMCIT. Council member Lamb said that he got spread sheet information about health care costs for the • region. If $1 million was adequate ten years ago, is it still adequate today? Is it adequate given the activities the City engages in? Do we have sufficient protection for our citizens? Adding an additional $1 million coverage would cost $1,198 or about 22 cents/resident. Mayor Gehrz said that she has been doing a lot of thinking about this and looking at materials. She thinks a bigger, broader issue is being raised that will affect not only Falcon Heights but also other communities. The Legislature takes action to provide some protections to cities and city budgets. This is one instance put in place to protect city budgets. In response to a question, Council member Lindstrom and Attorney Knutson said that in 1997, the Legislature, working in conjunction with the League of Cities, passed legislation regarding this matter and, in 2000, put the $1 million cap into effect. Attorney Knutson said he had a conversation with the LMCIT and they indicated that some communities buy the extra insurance, some don't. He asked them if they have paid more than $1 million on claims and they have had none. Also, most of the City's contracts have an indemnity provision. Council member Lindstrom said that he shares the Mayor's concern that this is a broader issue than just Falcon Heights. The City and the State have looked to protect the taxpayers. He is comfortable with the $1 million. He is not sure this is the time to be incurring additional expense. Council member Kuettel said that she shares the same concerns that Council member Lamb has. If a van with four family members in it is in an accident with a City vehicle, $1 million will not take care of their medical expenses. $1 million doesn't seem like a lot any more, • particularly if a family in the City is injured by something the City is found to be liable for. • FALCON HEIGHTS CITY COUNCIL MINUTES _3_ January 22, 2003 Reconsideration of Waiver on Tort Liability Limits for the LMCIT (continued) Administrator Worthington said there is an indemnity clause in every City contract. Staff has asked detailed questions of the League and has been told that since Falcon Heights has not had a liability claim in the last ten years, the City's rates are low. There may also be some savings because the cost is spread over a broader base. Staff does a proactive risk analysis for the City every year and considers what might be coming up in the next year. The City has never had a claim against the excess liability. The City carries a $1 million bond on its City Administrator and Finance Director and various bonds on its equipment. Mayor Gehrz said that if the City were to purchase additional insurance the money would need to come out of the contingency fund. There are good arguments on both sides of this. Having tort liability limits in effect is important to protect the taxpayers. Waiving the tort liability has a downside. She would like to see the State increase the amount of the coverage and the City can weigh in with the League on this matter. At this time she would be inclined to support the previous decision made at the last Council meeting to not waive the tort liability limit and pursue this through the League. Lamb moved that the City Council reconsider its action of January 8, 2003, to not waive the tort liability limits. The vote was 2-2 with Lamb and Kuettel in favor, Gehrz and Lindstrom opposed. The motion failed. Council member Kuettel encouraged Mayor Gehrz to pursue this with the League. There may be an opportunity to raise this issue with the Legislature also. Council member Lamb concurred and said he thinks this is important. Consideration of Application for a Citizen Coss Grant from the State Department of Emer enc~ e Mayor Gehrz distributed a preliminary budget and gave a brief overview of the application for a Citizens Corps grant from the Minnesota Department of Emergency Management. The grant would cover materials, supplies, and training related to citizen or neighborhood preparedness activities. She said she is more than willing to write the grant application and asked for City Council trust and approval of the concepts. A brief discussion followed. Council member Kuettel moved that Mayor Gehrz be authorized to prepare and submit an application for a Citizen Corps and Community Emergency Response Team (CERT) Grant from the Minnesota Department of Emergency Management to support the activities of the Falcon • Heights Neighborhood Commission and the Community Emergency Response Team. The motion was unanimously approved. 3 • FALCON HEIGHTS CITY COUNCIL MINUTES January 22, 2003 Approval of Ordinance 03-01 Concerning Limitations on Impervious Surfaces -4- Administrator Worthington said that in early 2002, the residents in the Northome neighborhood alerted the City to an issue that was becoming more and more prevalent-that of lot coverage. Lot coverage in the Falcon Heights City code is defined as any impervious surface (including homes, garages, patios, decks, sidewalks, and driveways). Over a period of eight months in 2002, the Planning Commission worked on the issue of impervious surface coverage in the residential zoning areas of Falcon Heights, with the assistance of Dan Cornejo from Short Elliott Hendrickson, and the excellent work of Deb Jones, the City Planning and Zoning Coordinator. After much research and consideration, taking public input, and re-working the ordinance several times, they formulated an ordinance for the Council's approval. The Planning Commission held a public hearing in November, 2002, to take testimony from residents. There were no negative comments and the Planning Commission unanimously recommended approval of the proposed ordinance amendment by the City Council. Council member Lindstrom, Council liaison to the Planning Commission, said that years ago, the City had been quite restrictive about lot coverage, and then, at some point the coverage was changed, permitting up to 75% of a lot to have an impervious surface. He gave a brief review • of the proposed ordinance amendment and said that if it is approved by the Council, there is only one property in the City that will be legal, non-conforming. He complimented Deb Jones and and Dan Cornejo for the tremendous job they did and said the GIS data was also very helpful. Mayor Gehrz said she is very, very impressed with what the Planning Commission and staff have developed. They have created something that has a good balance and yet respects the investments that people have made in their homes. Kuettel moved that Ordinance No. 03-01 amending Chapter 9-2.05, subd. 2d of the Falcon Heights City Code, concerning limitations on impervious surfaces, be approved as presented and outlined below. The motion was unanimously approved. SECTION 1. Section 9-2.05, subd. 2d of the Falcon Heights City Code is amended to read: In no event shall off street parking, structures of any type, buildings, or any impervious surfaces cover more than seventy-five percent (75%) of the lot areas, except for R-1 zoned land which is regulated by the Schedule below: Lot Area (S.F.) 7370 or less Over 7370 to 15800 Over 15800 to 34000 Over 34000 Maximum 45% 3320 S.F. or 30%, 4940 S.F. or 20%, 6800 S.F. or 15%, Impervious Lot whichever is whichever is whichever is Coverage greater greater greater SECTION 2. This ordinance shall be effective immediately upon its passage and publication. • FALCON HEIGHTS CITY COUNCIL MINUTES _5_ January 22, 2003 INFORMATION AND ANNOUNCEMENTS: Administrator Worthington reminded the cable audience about the Dead of Winter event that will be held on Sunday, February 2, 2003, 1-4 PM, at Community Park. Mayor Gehrz gave a brief review of the public meetings' schedule for the remainder of January. She also mentioned an article that appeared in the Minneapolis Star Tribune highlighting positive commentary from Commissioner of Revenue McElroy about Falcon Heights and its method of autonomous governance. Administrator Worthington said that at 7:00 PM on Tuesday evening, February 4, at City Hall, the Planning Commission will be holding public hearings regarding a proposed Comprehensive Plan amendment and preliminary plat for the SE Corner project, and a proposed ordinance amendment regarding an Interim Use Permit (IUP) for the Farmer's Market. A larger informational meeting about the SE Corner project will be held at 6:30 PM on Thursday, February 20, at City Hall. She invited the cable audience to either stop in to City Hall or contact her if they had any questions about the SE Corner Project or the Farmer's Market. • The regular City Council meeting was adjourned at 8:50 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk U • • CONSENT ITEM: F1 2/12/03 ITEM: Disbursements and Payroll SUBMITTED BY: Roland O.Olson, Finance Director REVIEWED BY: Heather Worthington, City Administrator EXPLANATION/SUMMARY: 1. General disbursements through February 5, 2003 in the amount of $14,773.41 2. Payroll for Pay Period #2 (01/15/03 to 01/30/03) in the amount of $14,023.43 ATTACHMENTS: • General Disbursements and Payroll ACTION REQUESTED: Approval DATE 02/03/03 TIME 02:45 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 1 APPROVAL OF BILLS PERI00 ENDING: _2-5-03 ~HECK# VENDOR NAME DESCRIPTION DEPT. AMOUNT ,Q/In ONE CALL CONCEPTS, INC LOCATES -------- 1.55 OXYGEN SERVICE COMPANY TANK RENTALS -------- 11.28 POINTMAP INCORPORATED SS&ST DRAWING TO ARCVIEW -------- 455.00 ROSEVILLE ROTARY CLUB OCT=DEC MEALS/GUESTS -------- 70.00 SHORT ELLtOTT HENDRICKSON URBAN DESIGN:LARP/SNELLG -------- 382.27 GUEST SERVICES INC FIRE SCHL:JOHNSON/POWERS -------- 80.00 ~ ~ ~ / *** TOTAL FOR DEPT 00 1,000.10 ~ ~~ ~~ ~~(,~~ 41952 FALCON GARDEN VIEW CAFE COUNCIL WORKSHOP FOOD LEGISLAT 66.47 I~ 41947 LEAGUE OF MN CITIES 2003 NEW COUNCIL CONF/RB LEGISLAT 240.00 LILLIE SUBURBAN NEWSPAPER LEGALS/FARMERS MKT/CARP LEGISLAT 48.84 LILLIE SUBURBAN NEWSPAPER LEGALS/ORD 03-01 LEGISLAT 20.93 *** TOTAL FOR DEPT 11 376.24 AMERICAN OFFICE PRODUCTS COPY HOLDER ADMINIST 10.65 AMERICAN OFFICE PRODUCTS COLORED PAPER ADMINIST 23.39 AMERICAN OFFICE PRODUCTS STAPLER/PAPER/PENS/CALCU ADMINIST 37.45 AMERICAN OFFICE PRODUCTS BNINDERS/CLIPS/PADS/PAPR ADMINIST 332.32 CASH POSTAGE ADMINIST 3.53 ICMA RETIREMENT TRUST 457 JAN/02 WORTHINGTON ADMINIST 200.00 1NSTY-PRINTS PLUS LETTERHEAD ENVELOPES ADMINIST 414.04 MIDWAY CHAMBER COMMERCE MEMBERSHIP ADMINIST 175.00 MINNEAPOLIS PAPER COMPANY LASER/COPY PAPER ADMINIST 185.25 • 41950 PERA JAN 16-31 PERA ADMINIST 1,411.12 ROSEVILLE ROTARY CLUB JAN/MARCH DUES/MEALS ADMINIST 285.00 COORDINATED BUS. SYSTEMS, COPIER MAINTENANCE ADMINIST 44.15 *** TOTAL FOR DEPT 12 3,121.90 CASN TREASURE HUNT GIFT CERT COMMUNIC 35.00 41948 HERMAN CONTRACTING HORSEDRAWN SLEIGH/WTR EV COMMUNIC 500.00 CINDERS GARDEN CENTER HAY BALES DEAD WTR EVENT COMMUNIC 41.02 41949 MCI WORLDCOM RES SVC LONG DISTANCE CHRGS COMMUNIC 9.80 DIANE MEYER DEAD WTR FOOD/PRIZES/JUi COMMUNIC 86.76 SPECIALTY OUTFITTERS LTD GALLONS COMMUNIC 16.98 SUBURBAN ACE HARDWARE FIREWOOD/DEAD WTR EVENT COMMUNIC 28.66 41946 RAMSEY COUNTY DEPARTMENT TEMP FOOD LICENSE/EVENTS COMMUNIC 114.00 *** TOTAL FOR DEPT 16 832.22 NCPERS GRWP LIFE INS FEB/02 JONES PLANNING 16.00 *** TOTAL FOR DEPT 17 16.00 HUGHES & COSTELLO FEB/03 PROSECUTIONS PROSECUT 2,747.50 *** TOTAL FOR DEPT 23 2,747.50 AMERIPRIDE LINEN&APPAREL LINEN CLEANING FIRE FIG 43.88 AMERIPRIDE LINENBAPPAREI LINEN CLEANING FIRE FIG 43.88 DBA PUBLIC SAFETY MARKTNG JACKETS/REFECT[VE VESTS/ FIRE FIG 595.00 EMERGENCY APPARATUS MAINT 752 SIREN REPAIRS/SPRING FIRE FIG 347.55 EMERGENCY APPARATUS MAINT 753 BELTS REPLACED/GREAS FIRE FIG 541.06 FIRE EQUIPMENT SPECIALTIE MASK NOSECUPS FIRE FIG 157.87 FIRE INSTRUCTORS ASSN. MN BOOKS/FIRE SCHL/HENDRICH FIRE FIG 85.43 • HCMC-EMS EDUCATION K. ANDERSON EMT REFRESHR FIRE FIG 209.00 SANDBERG,LAUREL REISSUE LOST PAYCHECKS FIRE FIG 38.81 DATE 02/03/03 TIME 02:45 CITY OF FALCON NEIGH COUNCIL REPORT PAGE 2 APPROVAL OF BILLS PERIOD ENDING: _2-5-03_ ~HECK# VENDOR NAME DESCRIPTION DEPT. AMOUNT SUPERAMERICA FUEL FIRE FIG 78.65 RAMSEY CTY FIRE CHIEFS 2003 MEMBERSHIP FIRE FIG 60.00 *** TOTAL FOR DEPT 24 2,201.13 BOARD OF WATER COMMISSNRS S.S. CITY HAL 11.69 BOARD OF WATER COMMISSNRS H2O CITY HAL 15.29 CASH APPLIANCE P[CKUP FEE CITY HAL 10.00 CINTAS CORPORATION #470 CARPET SVC CITY HAL 23.43 CINTAS CORPORATION #470 CARPET SVC CITY HAL 12.78 CINTAS CORPORATION #470 CARPET SVC CITY HAL 23.43 XCEL ENERGY GAS 1/30 CITY HAL 1, 081.25 XCEL ENERGY ELECT 1/31 CITY HAL 808.39 SUBURBAN ACE HARDWARE SAWSALL BLADES CITY HAL 12.24 SUBURBAN ACE HARDWARE MWSE PROOF/FLOOR WAX/NA CITY HAL 47.41 41951 VERIZON WIRELESS CELL PHONE CITY HAL 25.17 *** TOTAL FOR DEPT 31 2,071.08 GRAINGER, W. W., INC. STREET LITES STREETS 199.40 XCEL ENERGY ELECT 1/30 STREETS 59.17 XCEL ENERGY ELECT 1/30 STREETS 7.40 XCEL ENERGY ELECT 1/30 STREETS 69.25 SUPERAMERICA FUEL STREETS 126.19 *** TOTAL FOR DEPT 32 461.41 • BOARD OF WATER COMMISSNRS S.S. PARK & R 23.38 BOARD OF WATER COMMISSNRS H2O PARK & R 110.45 CASH PING PONG BALLS/COMM PK PARK & R 7.96 ICMA RETIREMENT TRUST 457 JAN/02 MAERTZ PARK & R 100.00 ICMA RETIREMENT TRUST 457 JAN/02 TRETSVEN PARK & R 100.00 NCPERS GROUP LIFE INS FEB/02 MAERTZ PARK & R 16.00 XCEL ENERGY ELECT 1/30 PARK & R 26.65 XCEL ENERGY ELECT/GAS 1/31 PARK & R 805.79 ON SITE SANITATION JAN/02 PORTABLE TOILET PARK & R 70.65 SUBURBAN ACE HARDWARE EQUIPMENT PARTS PARK & R 35.12 UNITED RENTALS CHIPPER RENTAL PARK & R 228.95 QWEST TELEPHONE EXPS PARK & R 111.82 *** TOTAL FOR DEPT 41 1,636.77 FIRE EQUIPMENT SPECIALTIE R/B RIT BAG FIRE & R 150.35 FIRE EQUIPMENT SPECIALTIE 24" HOOLIGAN TOOL FIRE & R 158.71 *** TOTAL FOR DEPT 64 309.06 *** TOTAL FOR BANK 01 14,773.41 *** GRAND TOTAL *** 14,773.41 Cxl/ ~/ ~pACJ 8 PERIOD END DATE 01/30/03 **FILE NOT UPDATED** PAGE 1 SYSTEM DATE 01/28/03 C H E C K R E G I S T E R CHECK CHECK EMPLOYEE NAME CHECK CHECK TYPE DATE NUMBER NUMBER AMOUNT • COM 1 30 03 6 SUSAN GEHRZ 32534 303.34 COM 1 30 03 12 LAURA A. KUETTEL 32535 277.05 COM 1 30 03 13 PETER C. LINDSTROM 32536 277.05 COM 1 30 03 14 RICHARD P TALBOT JR 32537 177.05 COM 1 30 03 15 ROBERT E LAMB 32538 277.05 COM 1 30 03 34 CLEMENT KURHAJETZ 32539 280.74 COM 1 30 03 35 LEO LINDIG 32540 64.64 COM 1 30 03 42 MICHAEL D CLARKIN 32541 108.52 COM 1 30 03 66 ALFRED HERNANDEZ 32542 55.41 COM 1 30 03 74 MARK J ALLEN 32543 138.52 COM 1 30 03 85 DANIEL S JOHNSON-POWERS 32544 54.64 COM 1 30 03 91 RICHARD H HINRICHS 32545 64.64 COM 1 30 03 % DAVID R HOLTZ 32546 64.64 COM 1 30 03 1003 HEATHER WORTHINGTON 32549 1396.16 COM 1 30 03 1013 WILLIAM MAERTZ 32550 1574.30 COM 1 30 03 1030 MARY A. KODLUBOY 32551 1242.97 COM 1 30 03 1033 DAVE TRETSVEN 32552 1128.55 COM 1 30 03 1038 DEBORAH K JONES 32553 862.73 COM 1 30 03 1089 KATHLEEN A CIERNIA 32554 941.52 COM 1 30 03 1103 DIANE MEYER 32555 272.27 COM 1 30 03 1136 ROLAND 0 OLSON 32556 1318.48 COM 1 30 03 1142 ANTHONY ANDERSON 32557 262.05 COM 1 30 03 1143 COLIN B CALLAHAN 32558 626.71 COM 1 30 03 1173 ELIZABETH M POSTIGO 32559 461.36 COM 1 30 03 1176 MICHAEL P ECKBERG 32560 289.78 COM 1 30 03 1178 PETER M FISCHER 32561 337.20 COM 1 30 03 1181 LEAH A BICKLER 32562 15.59 COM 1 30 03 1184 MATTHEW W KRIEGLER 32563 55.41 COM 1 30 03 1188 NICOLE S GRAHAM 32564 162.68 COM 1 30 03 2006 OAMON J. WICKNEM 32565 431.15 COM 1 30 03 2018 ANNA M. SHELDON 32566 51.72 COM 1 30 03 2023 ZACH E. BRAND 32567 44.32 COM 1 30 03 2034 ELIZABETH A. NORRIS 32568 113.59 COM 1 30 03 2035 ROSS A. HERNANDEZ 32569 33.25 COM 1 30 03 2036 NICHOLAS M. KNOBLAUCH 32570 135.72 COM 1 30 03 2037 TAYLOR COX 32571 122.63 COMPUTER CHECKS 14023.43 MANUAL CHECKS .00 NOTICES OF DEPOSIT .00 ****TOTALS**** 14023.43 • 9 CONSENT ITEM: F2 • 2/12/03 ITEM: Licenses SUBMITTED BY: Mary Shea Kodluboy/Deputy Clerk REVIEWED BY: Heather Worthington, City Administrator EXPLANATION/SUMMARY: Outlined below is a list of additional license applications for 2003 MUNICIPAL BUSINESS RENEWALS DeLange Dancers Studio, 1899 West Larpenteur Hoover Company, The, 1539 West Larpenteur Vacuum Cleaners Midwest Youth Dance Theatre, 1557 West Larpenteur My Turn, 1579 Hamline Avenue North -Antiques HOME OCCUPATION Virtual Junction Business Solutions, 1854 North Arona MECHANICAL (HEATING AND AIR CONDITIONING Almanac HVAC, Wayzata Anderson Heating and Air Conditioning, Columbia Heights Apollo Heating and Vent. Corp., Oakdale ARI Mechanical Services, Inc., Bloomington Flare Heating and Air Conditioning -Golden Valley LANDSCAPING, TREE CARE AND TREE TRIMMING Hugo Tree Care, Inc., Hugo Northern Arborists, Lake Elmo Precision Landscape & Tree, Inc., -Little Canada Rainbow Tree Company, St. Louis Park St. Croix Tree Service, Inc., Roberts, Wisconsin ACTION REQUESTED: Approval • Id • CONSENT ITEM: F3 2/12/03 ITEM: Full Call On Remaining Outstanding Debt on the General Obligation Improvement Bonds, Series 1993, dated May 1, 1993 SUBMITTED BY: Roland O. Olson, Finance Director REVIEWED BY: Heather Worthington, City Administrator Deborah Eller, Ehlers & Associates EXPLANATION: Summary: Ehlers and Associates was contacted to inquire about the feasibility of calling the remaining debt on the General Obligation Improvement Bonds, Series 1993. Ehlers and Associates were the original financial consultants that assisted Falcon Heights when this bond was obtained. The City has one remaining principal payment of $130,000. For this last payment the interest charge increased to 4.75%. At the same time, the overall average interest rate of return on our investments fell to a little below 4% as of the end of December. Even though there will be a charge of $350-$400 to call the remainder on this bond, the city should save approximately $500 after costs compared • to waiting and paying off the bond on February 1, 2004. There are adequate funds available in this account to pre-pay the bond. ATTACHMENT: • Resolution 2003-04 authorizing redemption of outstanding General Obligation Improvement Bonds, Series 1993 ACTION REQUESTED: Authorize full call of the General Obligation Improvement Bonds, Series 1993. • • EXTRACT OF NIINUTES OF MEETING CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Falcon Heights, Minnesota, was duly called and held at the City Hall in Falcon Heights, Minnesota, on Wednesday, February 12; 2003. The following members were present: and the following members were absent: Member introduced the following resolution and moved its adoption: • Resolution No. 2003-04 RESOLUTION CALLING FOR REDEMPTION OF OUTSTANDING GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993, DATED MAY 1,1993 WHEREAS, the City Council of the City of Falcon Heights, Minnesota (the "City"), issued on behalf of the City $1,075,000 General Obligation Improvement Bonds, Series 1993, dated May 1, 1993 (the "1993 Bonds"), of which $130,000 still remains outstanding; and WHEREAS, all of the 1993 Bonds maturing in the years 2000 and later years are subject to redemption and prepayment at the option of the City on February 1, 1999 and on any date thereafter, at the price of par plus accrued interest to the date of redemption, all as provided in the resolution adopted by the City Council on April 14, 1993, authorizing the issuance of the 1993 Bonds (the "1993 Resolution"); and WHEREAS, the City Council deems it desirable and in the best interests of the City to call those Bonds maturing in.the year 2004 totaling $130,000 in principal amount, on April 1, 2003, in accordance with the 1993 Resolution; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: • (1) All of the 1993 Bonds maturing in the year 2004, totaling $130,000 in principal amount shall be redeemed and prepaid on April 1, 2003, at par, plus accrued interest. l~ • (2) The City Clerk is hereby authorized and directed to give mailed notice of call, at lease 30 days prior to April 1, 2003, to the registered owner of each Bond to be redeemed at the address shown on the registration books of the 1993 Bonds. Said notice shall be in substantially the form attached hereto as Exhibit A. In addition to the official notice of redemption provided for in the paragraph above, the City shall also give, or cause to be given, notice of the redemption of any Bond or Bonds thereof, at least 35 days before the redemption date, to the Purchaser and all registered securities depositories in the business of holding substantial amounts of obligations of types such as the 1993 Bonds (such depositories now being The Depository Trust Company of New York, New York) and to one or more national information services that disseminate information regarding municipal bond redemptions_ Each further notice of redemption shall be sent by certified mail or facsimile transmission, and shall contain the information set forth in the official notice of redemption provided on Exhibit A. (3) The City Clerk is hereby authorized and directed to deposit with The Depository Trust Company, New York, New York, on the call date of April 1, 2003, sufficient funds for such redemption on the 1993 Bonds. Mayor Attest: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted this 12~' day of February, 2003 and was signed by the Mayor which signature was attested by the City Clerk. • l3 • STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS I, the undersigned, being the duly qualified and acting City Clerk of the City of Falcon Heights, Minnesota (the "City"), hereby certify that I have compared the attached and foregoing extract of minutes of a regular meeting of the City Council, held on Wednesday, Febntary 12, 2003, with the original minutes on file in my office and the extract is a frill, true and correct copy of the minutes, insofar as they relate to the redemption of certain General Obligation Improvement Bonds, Series 1993, dated May 1, 1993 of the City. WITNESS My hand as City Clerk and the corporate seal of the City this 12th day of February, 2003. City Clerk City of Falcon Heights, Minnesota (SEAL) • ~~ EXHIBIT A NOTICE OF CALL FOR REDEMPTION • The Depository Trust Company Attn.: Supervisor, Call Notification Department 55 Water Street 50`h Floor New York, NY 10041-0099 RE: City of Falcon heights, Minnesota General Obligation Improvement Bonds, Series 1993 Date of Original Issue -May 1, 1993 NOTICE IS HEREBY GIVEN That by order of the City Council of the City of Falcon Heights, Minnesota, all Bonds of the above-described issue which mature on the dates and bear interest at the rates set forth below: Maturity Date Amount Interest Rate Cusip Number February 1, 2004 130,000 4.75% 306045 FL4 are called for redemption and prior payment on April 1, 2003. The Bonds will be redeemed at a price of 100% of their principal amount plus accrued interest to the date of redemption. The Bonds to be redeemed should be presented for payment at the office of the City Clerk, 2077 Larpenteur Avenue West, Falcon Heights, Minnesota 55113-5551, on or before April 1, 2003. The City will deposit federal or other immediately available funds sufficient for such redemption at the office of The Depository Trust Company on or before April 1, 2003. Such Bonds will cease to bear interest on April I, 2003. BY ORDER OF THE CITY COUNCIL CITY OF FALCON HEIGHTS, MINNESOTA City Clerk • Dated: February 12, 2003 l~' • CONSENT ITEM: F4 2/12/03 ITEM: Appointments to the Neighborhood Commission SUBMITTED BY: Sue Gehrz, Mayor EXPLANATION: Summary: The following individuals have agreed to serve on the Neighborhood Commission: Lt. Dominic Cotroneo is a member of the St. Anthony Police Department, and Capt. Dan Johnson-Powers is a member of the Falcon Heights Fire Department. Both have experience in emergency planning, and will serve in a role as liaison to their respective public safety departments. Dan Johnson-Powers has also agreed to participate in the CERT (Community Emergency Response Teams) train-the-trainer program later this year, and become the CERT liaison for Falcon Heights. ACTION REQUESTED: • Appointment of Capt. Dan Johnson-Powers and Lt. Dominic Cotroneo to the Neighborhood Commission. • /~ • CONSENT ITEM: FS 2/12/03 ITEM: Appointment of City Attorneys for 2003 SUBMITTED BY: Heather Worthington, City Administrator EXPLANATION/SUMMARY: The following individuals are under contract as consultants to the city for 2003: (Minnesota Statute requires formal appointment to these posts) City Attorney (Civil) Roger Knutson, Campbell Knutson City Attorney (Criminal) Martin Costello, Hughes and Costello ACTION REQUESTED: Approval of appointment of the City Attorneys for 2003 • • i'1 • CONSENT ITEM: F6 2/12/03 ITEM: Request to Approve Extension of the Recycling Contract with E-Z Recycling for One Year, Commencing on February 28, 2003. SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Solid Waste Commission EXPLANATION/DESCRIPTION: Summary: The Council is being asked to approve extension of the recycling contract with E-Z Recycling for one year, commencing on February 28, 2003, at the current rate. Goa14: To provide a responsive and effective city government. Strategy 4: Strive to provide citizens with more efficient and convenient city services The Solid Waste Commission has recommended this extension, and has also discussed the possibility of providing additional services for curbside pickup of clean textiles and clothing. E-Z is agreeable to these provisions. • ACTION REQUESTED: Approve extension of the recycling contract with E-Z Recycling for one year, commencing on February 28, 2003, at the current rate. • 18 ~~ r: Consent 7 2/12/03 Addendum ITEM: Approval of the 2002 Pay Equity Report SUBMITTED BY: Heather Worthington EXPLANATION: Summary: The State of Minnesota's Department of Employee Relations (DOER) requires local units of government to comply with the Pay Equity Act by submitting a report every three years. The Pay Equity Act requires cities to list each part-time or full- time employee's class title, the number of employees by gender in each class, and the work value points of each class. Minimum and maximum salaries are also reported, with the number of years that employee class takes to reach the highest "step" if a step plan is utilized (Falcon Heights does utilize a step plan). Pay Equity is a method of eliminating discrimination against women who are paid less than men for jobs requiring comparable levels of expertise. This goes beyond the familiar idea of "equal pay for equal work" where men and women with the same jobs must be paid equally. The report was filed with the State on January 31, 2002. The DOER will review the reports received for 2002 over the next year, and will then report back to the city regarding compliance. ATTACHMENT: 2002 Pay Equity Report ACTION REQUESTED: Approval of the 2002 Pay Equity Report as submitted • Pay Equity Implementation Report Send completed report to: Pay Equity Coordinator Department of Employee Relations 200 Centennial Building 658 Cedar Street St. Paul, MN 55155-1603 (651) 296-2653 (Voice) (651).297-2003 (TTY) Postmark Date of Report Jurisdiction ID Number = Name of Jurisdiction ° _ Falcon Heights ~ ~I City ^ County ^ School ^ Other: ,i ~ ~ w Address City State Zip Q m 2077 W. Larpenteur Avenue Falcon Hei hts ~ ~ Contact Person Phone Fax a Heather Worthington, City Admin. (651 ) 644-5050 (651 ) 644-8 ~ The job evaluation system used measured skill, effort, ©No salary ranges/performance differences responsibility and working conditions and the same system was used for all classes of employees. Check the system Q Check here if both of the following apply; otherwise, used: leave blank. a. Jurisdiction does not have a salary range for any job L~ State Job Match class b. Upon request, jurisdiction will supply documentation ^ Designed Own (specify) showing that inequities between male and female classes are due to performance differences. _ ^ Consultant's System (specify) Note: Do not include any documentation regarding ~ performance with this form. ~+ v ^ Other (specify) Q An official notice has been posted at y. ~'= d Kitchen--Lunchroom ~ ©Health insurance benefits for male and female. classes of (prominent location) comparable value have been evaluated and: informing employees that the Pay Equity Implementation ~~ Report has been filed and is available to employees upon ~ ~ There is no difference and female classes are not at a request. A copy of the notice has been sent to each D disadvantage exclusive representative, if any, and also to the public library. The report was approved by: m ^ There is a difference and the maximum salaries reported City Council ~ include the monthly amount paid by the employer for ~ a health insurance. (governing body) © Information in this report is complete and accurate. Susan L. Gehrz, ..Mayor elected icia print) Ich O The report includes all classes of employees over which the ~ jurisdiction has final budgetary approval authority. ~ ~- ~ (chief elected official, si ature) Mayor 1/31/03 (title) (datel Result from Salary Range Worksheet v~m~ H ~ ~ 100 % is the result of average years to salary range maximum for male classes divided by the a average years to salary range maximum for female classes. Results from Exceptional Service Pay Worksheet W ~ W ~ Not applicable ~ ° '' c ^ 20% or less of male classes receive ESP. .Falcon Heights does not offer exceptional t:aa~E ~ ° Pay• ' x•" ~ a is o m % is the result of the percentage of female classes receiving ESP divided by the percentage of u, to J d male classes receivin ESP: W W ° i $ 418 , 634.8D is the annual payroll for the calendar year just ended December 31. ~ ° {0 ~" a a For Department Use Only Iran r- on tsacKl • POLICY ITEM: G1 2/12/03 ITEM: Consideration of the Preliminary Plat for the SE Corner Redevelopment SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Roger Knutson, City Attorney EXPLANATION: Summary: The two pieces of property located on the Southeast Corner of Snelling and Larpenteur Avenues will need to be re-platted prior to the Planned Unit Development (PUD) process going forward. The current property is divided into 15 parcels, each with its own Property Identification Number (PIN). This part will redraw the boundary lines for each of the three planned units of the new development-the multi-family building, the senior building, and the townhomes. The stormwater retention pond on the site will be platted with the multi-family building, ensuring that the future maintenance of that pond will be the responsibility of Sherman and Associates. The townhomes will be on a separate plat because the land under the townhomes will be legally structured as a homeowner's association, with the land jointly owned and maintained by all 14 of the • townhome owners. -The senior building is also on a separate plat. The Planning Commission, at its meeting on February 4, 2003, recommended approval of the preliminary plat, as presented. The preliminary plat is being presented to the City Council for approval, and then will be submitted to Ramsey County for their review and approval. Later this spring, the final plat will be reviewed by the City Council and finalized with Ramsey County. ATTACHMENT: Preliminary plat map ACTION REQUESTED: Approval of the preliminary plat for the SE Corner Redevelopment. A ~ ~.,~.,.o,. ~ ~ iy °Ea ~ rumare rmadiva ~ ana rt 4 . - a e tLiiQ '~~ a !t ® j ~ btu: ~a a~ ...=. w: ~ :~ : : „ w nlu~r xnvximan alu~onr ox mii ~ ~ a $ ~" . s ..:.::~ ~ aarnos runol s~H No~ve ~ ~ a ~ 1~ Aq gg J ~~ ~~~~` ~~'~a~~ t- 2 ~s #a~'~s ~ ' 2 Ra gQ ~ ag# ~ ~~n b €€ ~~Sa ~~Z ~ ~[ ~ E g ~it~~°E ~ ~a g f ~; ~8~ .9 g' yaQ ~ ~ i 7 ~~~#a ~~~~ ~ gf} x ~ ; ~ ~ ~ i g { ~ a1d ~ ~ ~ ~ g~~ ~ ~ g ~ ~~~~~~ ~ ~ ' ~ ~ _ g ~ ~~~ ~~i~~ ~ ~~:~~ « s ' b x~a ~a~~i~~~~~a~~~;#F~ ~1!' f yy6_ g. ~ g E ~~ ~ ~~::~ ppb '~ R ~~~ ~~4 i i 10'({92 M.01,84000 ~~ ~~~E, e .~~- ~~~ e. *?t. ,r ~, ~'~ s ~o • POLICY ITEM: G2 2/12/03 ITEM: Consideration of an Amendment to the City's Comprehensive Plan SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Roger Knutson, City Attorney EXPLANATION: Summary: In 2000, the City was required to submit an update to the 1991 Comprehensive Plan for the Metropolitan Council. In that update, the Southeast corner of Snelling and Larpenteur Avenues was listed as a "study redevelopment area". At that time, the City did not have any firm plans for the redevelopment of the corner, and therefore did not list a specific use or project for the site. In early 2000, the City began discussions with the property owners of that site, and in 2001, entered into an agreement with Sherman and Associates to redevelop the site as mixed-use retail/housing. The City must now amend its Comprehensive Plan to reflect the proposed use for the site. • The Planning Commission, at its meeting on February 4, 2003, recommended unanimous approval of the amendment, as presented. The amendment is being submitted to the City Council for their approval and then will be submitted to the Metropolitan Council for their review and inclusion into our Comprehensive Plan. While this is a formality, it is necessary to have a Comprehensive Plan that is consistent with the City's planning efforts in this regard, and will reflect the project goals and desired outcomes. ATTACHMENTS: • Map showing the SE Corner and the "study redevelopment area" designation • Council resolution amending the Comprehensive Plan ACTION REQUESTED: Approval of the 2003 Comprehensive Plan Update Amendment ~1 Z J u :~N~~;,~.,.~. ~..:... l any ~w_w..~-~ =--~-"~i~o;'. .:.,•.•~~~.•.~.., 'x..12"-`'w;i.:..w,~-si '~y=~~. ~ y i......rrJ t~~-__.:iJ-L ,..t.4iiL !r+V+M.t~ • ]S~ ui.i[~..r.~ ~ - _ ,t (, z < IAW uf[fbt 1 -mot-mow= M L i ~w _. _. ._. .._. m -. ..j _.~~ - < ... ~.... . .. ..-.. `' j ' •r f.. ~ • : -.: - 6 . - , ! r ~ t'- T ^ `~ -* :-_... ~ }~ ~ Wi - ~~ '- , ... . - • , _ - . _. -__ .. _. 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J < m !- ~ V p O d < > O ~ ~ in ------.~',' a o ~ ~ ~ ~ I i *7 gal N0.03-03 • CITY OF FALCON HEIGHTS COUNCIL RESOLUTION Date: 2/12/03 A RESOLUTION AMENDING THE CITY'S COMPREHENSIVE PLAN RELATING TO THE SOUTHEAST CORNER OF SHELLING AND LARPENTEUR AVENUES WHEREAS, the Falcon Heights comprehensive plan addresses plan elements for the City's CommerciaUBusiness areas, including the Snelling/Larpenteur Commercial Core; and WHEREAS, it is appropriate to amend this section of the comprehensive plan and the Land Use Plan Map in order to allow mixed residentiaUcommercial use at the southeast corner of Snelling and Larpenteur Avenues; and • WHEREAS, the Planning Commission following its public hearing unanimously recommended amending the comprehensive plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA: The Land Use Plan Map, figure 8, of the comprehensive plan is amended by designating the following described property at the southeast corner of Snelling and Larpenteur Avenues to Mixed Use, "MU": PARCEL 1 Tracts A through K, Registered land Survey No. 94. (Torrens Property) PARCEL 2 Tract A, except the north 38.33 feet of the west 70 feet thereof and except the south 51.67 • feet of the north 90 feet of the west 73 feet of Tract A, Registered Land Survey No. 2. (Torrens Property) 104491.01 RNK:O 1/28/2003 ~3 PARCEL 3 The West 506.5 feet except the West 426.5 feet of the South 150 feet of the North 359.5 feet of the Northwest Quarter of Section 22, Township 29, Range 23, except public streets and highways. (Torrens Property) PARCEL 5 Tract A, Registered Land Survey No. 73, Ramsey County, Minnesota. (Torrens Property) PARCEL 6 That part of the Westerly 159.5 feet, except the North 49.5 feet thereof, of the Northwest Quarter of the Northwest quarter of Section 22, Township 29 North, Range 23 West, Ramsey County, Minnesota lying Northerly of the westerly extension of the southerly line of Tract A, Registered Land Survey Number 2; Which lies Easterly of Line 1 described below: • Line 1. Commencing at the Northwest corner of said Section 22• thence run Easterl y along the North line thereof on an azimuth of 88 degrees 48 minutes 49 seconds for 159.53 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 89.90 feet to the point of beginning of Line 1 to be described; thence on an azimuth of 269 degrees 53 minutes 31 seconds for 39.50 feet; thence on an azimuth of 179 degrees 53 minutes 31 seconds for 550.89 feet and there terminating. (Torrens Property) 2. The Commercial/Business area section of the land use element of the comprehensive plan is amended by adding the following provision: Southeast Corner Snelling/Larpenteur. The southeast corner of Snelling and Larpenteur Avenues is guided for mixed commercial and attached residential uses. • 104491.01 RNK:01/28/2003 ~y 3. This amendment is conditionally approved subject to Metropolitan Council review. C7 ADOPTED by the Falcon Heights City Council on February 12, 2003. • • ATTEST: Sue Gehrz, Mayor Heather Worthington, City Administrator/Clerk 104491.01 RNK:O1/28/2003 ~I POLICY ITEM: G3 2/12/03 ITEM: Consideration of Ordinance Amendment No. 03-02 Providing for a Farmer's Market Interim Use Permit at 2025 West Larpenteur SUBMITTED BY: Heather Worthington, City Administrator REVIEWED BY: Roger Knutson, City Attorney EXPLANATION: Summary: At its regular, February 4, 2003 meeting, the Falcon Heights Planning Commission recommended unanimous approval of the amendment to the B-2 Zoning Ordinance allowing a provision for an Interim Use Permit (IUP) for Farmer's Markets in Falcon Heights, with a few minor changes to the defmition of "Farmer's Market". Staff is working with the Twin Cities Co-op Federal Credit Union to draft the IUP for the February 25~' Planning Commission meeting, where a public hearing on the IUP will be held. The IUP will then come to the City Council for consideration on February 26~'. • ATTACHMENT: • Planning Commission Staff Report from 2/4/03 • Ordinance 03-02, as submitted to the Planning Commission and prior to modification by them ACTION REQUESTED: Approval of Ordinance 03-02 ~L Planning Commission 2/4/03 Item 3 ITEM: Recommendation of Ordinance Providing for a Farmer's Market Interim Use Permit at 2025 W. Larpenteur SUBMITTED BY: Deborah Jones, Zoning and Planning Coordinator REVIEWED BY: Heather Worthington, City Administrator EXPLANATION: Summary In late 2002, the Twin Cities Co-op Federal Credit Union approached the city with a request to allow a Farmer's Market at their location at 2025 W. Larpenteur Avenue, in the rear parking lot. At a Community Meeting held on November 25, 2002, 80% of the 15 attendees • expressed approval of the idea. The Credit Union and the St. Paul Farmer's Market presented information at the meeting and took questions. (A detailed account of the meeting is attached to this staff report). Issues of traffic and noise were addressed. In December, the citywide survey received an overwhelmingly positive response on the Farmer's Market: 2. The city has been asked to consider allowing a weekly farmer's market at 2025 Larpenteur Avenue (Twin Cities Co-op Federal Credit Union). This would replace the one currently held at Har Mar. Would you or someone in your household be likely to shop at a Farmer's Market in Falcon Heights? Yes 196 No 13 Unsure 3 5 Falcon Woods Breakout Yes 42 No 4 Unsure 6 The next step is to amend the City Code to provide for a farmer's market as a legal use at the credit union location, which is in the B-2 zone. Several amendments to the Zoning . Code (Chapter 9) are therefore presented for your consideration and recommendation to the City Council: J'~ Planning Commission 2/4/03 Item 3 (continued) • Addition of a legal definition of a farmer's market to the definitions section of Chapter 9 • Addition of a provision for Interim Use Permits, to be added to Section 9-15. Our City Attorney advises that in Interim Use is the most appropriate kind for a farmer's market, and our current city code does not provide for this kind of use. An Interim Use must meet most of the conditions and standards set forth for a Conditional Use. This amendment sets general standards and requirements for any future Interim Use that may be allowed in the City Code. • Addition of a new subdivision for Section 9-9: "B-2", Limited Business District. The new Subdivision 7 lists legal Interim Uses in the B-2 zone. At this time only one such use is listed, the Farmer's Market. This section sets up specific criteria that a farmer's market must meet to get an Interim Use Permit. If the Planning Commission votes to recommend passage of the ordinance, the City Council will act on the recommendation at the Council's next regular meeting, February 12, 2003. ATTACHMENTS: 1. Copy of proposed Ordinance 03-02 amending certain sections of Chapter 9 of the City Code. 2. Legal notice of Public Hearing 3. Map of the Farmer's Market site in the north parking lot of Twin City Co-op Federal Credit Union 4. Notes from the Community Meeting on November 25, 2002 5. Copy of the cover letter sent to properly owners within 350 feet with the above legal notice. The map and proposed ordinance were also enclosed with this mailing. 6. Copy of the cover letter sent to all residents in the local neighborhood. They also received the legal notice, a copy of the ordinance, the map and notes from the November 25 meeting. ACTION REQUESTED: 1. Open the public hearing. 2. Take comments from the public. 3. Close the public hearing. 4. A motion to recommend that the City Council approve Ordinance 03-02. r~ U ~8 CITY OF FALCON HEIGHTS • RAMSEY COUNTY, MINNESOTA ORDINANCE NO. 03-02 AN ORDINANCE AMENDING CHAPTER 9 OF THE FALCON HEIGHTS CITY CODE, THE ZONING ORDINANCE, CONCERNING FARMER'S MARKETS THE CITY COUNCIL OF FALCON HEIGHTS ORDAINS: SECTION 1. Section 9-1.02, Subd. 2 of the Falcon Heights City Code is amended by adding the following definition: FARMER'S MARKET: An open air public market at which vendors sell produce directly to consumers. SECTION 2. Section 9-15 of the Falcon Heights City Code is amended to add Section 9-15.08 to provide: 9-15.08 INTERIM USE PERMITS. • Subdivision 1. Purpose and Intent: The purpose and intent of allowing interim uses is: a. To allow a use for a temporary period of time until a permanent location is obtained or while the permanent location is under construction. b. To allow a use that is presently judged acceptable by the City Council, but that with anticipated development or redevelopment, will not be acceptable in the future or will be replaced in the future by a permitted or conditional use allowed within the respective district. c. To allow a use which is reflective of anticipated long-range change to an area and which is in compliance with the Comprehensive Plan provided that said use maintains harmony and compatibility with surrounding uses and is in keeping with the architectural character and design standards of existing uses and development. Subdivision 2. Procedure: Uses defined as "interim uses" shall be processed according to the standards and procedures for a conditional use permit as established by Section 9-15.04 of this Chapter. Subdivision 3. General Standards: An interim use shall comply with the following: a. Meet the standards of a conditional use permit set forth in subsection 9-15.04 of this Chapter, except that screening and landscaping shall not be required unless specifically enumerated as a condition in the permit. b. Conform to the applicable general performance standards of Section 9-14.01 of this Chapter, except that screening and landscaping shall not be required unless specifically enumerated as a condition in the • permit. c. The use is allowed as an interim use in the respective zoning district. 103844.03 1 1ZNK:r01282003 ~9 • d. The date or event that will terminate the use can be identified with certainty. e. The use will not impose additional unreasonable costs on the public. f. The user agrees to any conditions that the City Council deems appropriate for permission of the use. Subdivision 4. Termination: An interim use shall r to urinate on the ha enin of an of h PP g y t e following events, whichever occurs first: a. The date or event stated in the permit. b. Upon violation of conditions under which the permit was issued. c. Upon change in the City's zoning regulations which renders the use nonconforming. SECTION 3. Section 9-9.01 of the Falcon Heights City Code is amended to add Subdivision 7 to provide: Subdivision 7. Interim Uses: The following uses are allowed subject to the issuance of an interim use permit: a. Farmer's markets that meet the following criteria: 1) Operate no more than one day per week 2) Site includes not less than 284 parking spaces for customers of the market • 3) Market may not operate before 6:30 a.m. or after 8:00 p.m. 4) Permittee must name a managing agent who is responsible for the conduct of the vendors in compliance with the conditions of the Interim Use Permit. 5) The requirements of 9-9.01 Subdivision 5 Subparagraphs C and D shall not apply. SECTION 4. This ordinance shall be effective immediately upon is passage and publication. ADOPTED this day of , 2003, by the City Council of Falcon Heights, Minnesota. CITY OF FALCON HEIGHTS BY: ATTEST: Heather Worthington, City Administrator/Clerk 103844.03 RNK:r01/282003 2 Sue Gehrz, Mayor 30 CITY OF FALCON HEIGHTS RAMSEY COUNTY, MINNESOTA ORDINANCE N0.03-02 AN ORDINANCE AMENDING CHAPTER 9 OF THE FALCON HEIGHTS CITY CODE, THE ZONING ORDINANCE, CONCERNING FARMER'S MARKETS THE CITY COUNCIL OF FALCON HEIGHTS ORDAINS: SECTION 1. Section 9-1.02, Subd. 2 of the Falcon Heights Ciry Code is amended by adding the following definition: FARMER'S MARKET: An open air public market at which vendors sell farm products directly to consumers. SECTION 2. Section 9-15 of the Falcon Heights City Code is amended to add Section 9-15.08 to provide: . 9-15.08 INTERIM USE PERMITS. Subdivision 1. Purpose and Intent: The purpose and intent of allowing interim uses is: a. To allow a use for a temporary period of time until a permanent location is obtained or while the permanent location is under construction. b. To allow a use that is presently judged acceptable by the City Council, but that with anticipated development or redevelopment, will not be acceptable in the future or will be replaced in the future by a permitted or conditional use allowed within the respective district. c. To allow a use which is reflective of anticipated long-range change to an area and which is in compliance with the Comprehensive Plan provided that said use maintains harmony and compatibility with surrounding uses and is in keeping with the architectural character and design standards of existing uses and development. Subdivision 2. Procedure: Uses defined as "interim uses" shall be processed according to the standards and procedures for a conditional use permit as established by Section 9-15.04 of this Chapter. Subdivision 3. General Standards: An interim use shall comply with the following: a. Meet the standards of a conditional use permit set forth in subsection 9-15.04 of this Chapter, except that screening and landscaping shall not be required unless specifically enumerated as a condition in the permit. b. Conform to the applicable general performance standards of Section 9-14.01 of this Chapter, except that • screening and landscaping shall not be required unless specifically enumerated as a condition in the permit. c. The use is allowed as an interim use in the respective zoning district. 103844.03 1 RNK:r01/28/2003 3c~~ d. The date or event that will terminate the use can be identified with certainty. e. The use will not impose additional unreasonable costs on the public. f. The user agrees to any conditions that the City Council deems appropriate for permission of the use. Subdivision 4. Termination: An interim use shall terminate on the happening of any of the following events, whichever occurs first: a. The date or event stated in the permit. b. Upon violation of conditions under which the permit was issued. c. Upon change in the City's zoning regulations which renders the use nonconforming. SECTION 3. Section 9-9.01 of the Falcon Heights City Code is amended to add Subdivision 7 to provide: Subdivision 7. Interim Uses: The following uses are allowed subject to the issuance of an interim use permit: a. Farmer's markets that meet the following criteria: 1) Operate no more than one day per week • 2) Site includes not less than 284 parking spaces for customers of the market 3) Market may not operate before 6:30 a.m. or after 8:00 p.m. 4) Permittee must name a managing agent who is responsible for the conduct of the vendors in compliance with the conditions of the Interim Use Permit. 5) The requirements of 9-9.01 Subdivision 5 Subparagraphs C and D shall not apply. SECTION 4. This ordinance shall be effective immediately upon is passage and publication. ADOPTED this day of , 2003, by the City Council of Falcon Heights, Minnesota. CITY OF FALCON HEIGHTS BY: ATTEST: Heather Worthington, City Administrator/Clerk 103844.03 2 RNK:r01/28/2003 Sue Gehrz, Mayor 3bh CITY O~ FALCON HEIGHTS, MINNESOTA PUBLIC HEARING NOTICE NOTICE tS HEREBY GIVEN, that the Falcon Heights Planning Commission will meet on Tuesday, February 4, 2003, at approximately 7:00 p.m. at Falcon Heights City Hall, 2077 Larpenteur Avenue West, Falcon Heights, Minnesota 55113, to consider approving an interim use permit for a farmer's market at 2025 West Larpenteur Avenue, legally described as: The South 765 feet of the parcel of land which consists of the West 20 acres of the East half of the Southwest Quarter and the East 15 acres of the West half. of the Southwest Quarter, all in Section 16, Township 29, Range 23 of Ramsey County, Minnesota; except the East 131 feet of the South 186 feet of said West 20 acres and except the West 60 feet of said East 15 acres (subject to roads and easements) And • Except the Sovth 765 feet of the part East of the West 60 feet and except the South 522 feet of the West 60 feet of the following described tract: The South 15 acres of West 20 acres of the East half of the Southwest Quarter and the East 15 acres of the West half of the Southwest Quarter (subject to roads and easements) in Section 16, Township 29,. Range 23 of Ramsey County, Minnesota All persons who desire to speak on this issue are encouraged to attend and will be given an opportunity to be heard at this meeting. Additional information can be obtained by contacting the City of Falcon Heights at (651) 644-5050. Dated: , 2003. S Heather Worthington, City Administrator/Clerk City of Falcon Heights, Minnesota lo4zao.ol RNK:O1/142003 31 ~saM anuand ~na~uad~e~ / /i// N O O •~~/r m • C Q~ Q L .~ 3~ Notes from Community Meeting • November 25, 2002 On the proposed Farmer's Market at Twin Cities Coop Federal Credit Union Building, 2025 Larpenteur Avenue West 15 residents attended the meeting, which. began at 7:00 p.m. Jack Gerten of St. Paul Farmer's Mazket, Cindy Hartley and Todd Bazduson of TCU, and Councihnember Kuettel were in attendance, along with Heather Worthington, City Administrator. The meeting was precipitated by a request from Twin Cities Co-op Federal Credit Union that the city consider granting a Conditional Use Permit to allow a weekly farmer's market in their parking lot at 2025 Larpenteur Avenue West. Mr. Todd Bazduson of TCU presented the idea for a Farmer's Market to the group, and indicated the following details: • 423 parking spaces in the reaz Iot, approximately 1/3 of which would be used for setting uP the market at the faz east end of the lot (see attached map which was handed out at the meeting). • Noted that customers did not like to walk too faz, so it was advantageous to locate the parking for the mazket near the location of the market. . Access would be via two driveways, the south driveway for entrance only, and the north driveway for exit only. • Noted that this activity was in keeping with TCU's commitment to providing services or programs beneficial to the Falcon Heights community, such as the upcoming flu shot clinic, and parking during the State Fair benefiting the Falcon Heights Fire Relief Association. The Minnesota Horticultural Society has requested that they be allowed to use the space from time to time. • TCU does not charge any user for rental of the space, and would not make any money from this endeavor. • TCU initiated this proposed activity by contacting the St. Paul Farmer's Market and inquiring about locating a Farmer's Market in Falcon Heights, The Haz-Mar market was available, and they began discussions with the St. Paul Farmer's Market about the possibility of locating it at their site. Mr. Gerten presented the plan for a proposed Farmer's Market at the TCU Building at 2025 Larpenteur Avenue West. The St. Paul Farmer's Market is 150 years old. They have 15 locations, and in each instance have been asked by the host community to start markets. They currently have markets in several • suburban cities, including Burnsville, Cottage Grove, Woodbury, and several satellite locations 33 in St. Paul, including one at St. Luke's Catholic Church on Summit Avenue, and at Aldrich • Arena. He noted the following: • .Market would be held from 8 :00 to noon, on Tuesdays. • Set-up would begin at 6:30 a.m., and market would be closed and gone by 1:00 p.m. • There would be approximately 60 selling stalls, and 40 vendors. • They would take up 72 of the 423 pazking spaces, leaving 351 spaces for customer parking. • Typical customer visit is 10 minutes. • Market draws approximately 3,500 people (not cars) during peak from July-September. • There is an emphasis on orderly, quiet set-up, and vendors are not allowed to play radios, or have loud vehicles. • There aze no sales prior to 8:00 p.m. • Vendors are responsible for leaving the area clean when they leave • The Market is selective about vendors, and they must grow what they sell. (Mr. Gerten has done spot "inspections" of vendors, and if they are selling something they did not grow, they are asked to leave). • The market has been at Haz-Mar for 15 years. • They are members of the Minnesota Horticultural Society. • They have master gardeners on site at the markets. Their vendors accept WIC coupons for the purchase of vegetables. • Haz-Mar has changed its fee structure, and it is quite expensive for the Market to lease space in their parking lot. • The St. Paul Farmer's Market is anon-profit. • Mr. Gerten takes complaints/concerns very seriously, and keeps regular office hours in order to handle them. • If this site did not work out, they could stay at Haz-Mar, but they have concerns about parking, access, and long-term affordability of the site. The meeting was then opened to questions. Several residents noted concerns about traffic on Prior Avenue. Residents of the townhomes at Maple Knoll were concerned about not being able to exit their homes during the market, and cited increased congestion during the State Fair as a comparable situation. Many of them noted that they used the market at Haz-Mar, and had seen the congestion in that lot during the market. Mr. Gerten mentioned that the parking lot at Har-Mar is not conducive to the market use because of traffic patterns, and thought the TCU lot would be better suited to moving traffic in and out of the lot. A resident on Lindig stated that he shops at Har-Mar, and that before the TCU owned the building, Hewlett-Packard had rented the space to Ford for storage of Ranger pickpus. In addition, he stated that since Prior Avenue is a full-width street, there should be adequate access, but the city might consider limiting turns on to Larpenteur to right-turn only during the market. • He stated that the "clientele is like myself, not Fairgoers, and I fully support it". 3y~ A resident of Tatum had concerns about cut-through traffic on Tatum (which he said was already • troublesome) becoming worse because of the market. He noted that speed was a major problem on Tatum, and that he thought that several cars were exceeding 50 mph routinely. He suggested some signage to prevent "cut-through", or a sign that limited the street to "local traffic only". Ms. Worthington stated that such signs were usually of limited value, but that enforcement of the local speed Iimit was necessary, and that she would notify the police department immediately about the need for stepped-up enforcement. He also stated that the dance studio on Lindig and Larpenteur was bringing about 100 more cars into the area each day, and that he had concerns about wear and teaz on the streets, and added air pollution. He thought that "additional uses" in the area were not acceptable. Mr. Gerten stated that while the traffic concern was certainly legitimate, he had never experienced problems in other areas with impact from the market, and mentioned that in Burnsville, they. had approximately 6,000 cars, with no police or turn restrictions necessary. Another resident spoke in favor of the market, calling it a "wholesome activity", and noting that 1,500 cars sound like a lot, but a car every few minutes during afour-hour period is "not bad". He also noted that he and his wife were in favor of having places and events in Falcon Heights where you could walk to them. Worthington wrapped up the meeting, asking for a show of hands of those who supported the market, if the city could address the following through the Conditional Use (CUP} process: • 1. Access to site-traffic concerns. 2. More speed enforcement/possible signage to discourage cut-through traffic on Tatum. 3. If the City Council were to approve the CUP, the city would check in with residents again after one-year to see how things went, and if additional ~f.ne-tuning was needed. All but .three attendees raised their hands in support of the market. Worthington said that she would take their comments back to the City Council, and they would be discussing the amendment to the zoning, and the conditional use permit at an upcoming meeting, most likely in December. She said that copies of the map and the notes from the meeting, as well as an invitation inviting them to the city council meeting would be mailed to everyone between Fairview and Cleveland, and Larpenteur and Roselawn again. • 3S CITY OF • FALCON HEIGHTS 2077 W. LARPENTEUR AVENUE FALCON HEIGHTS, MN 55113-5594 PHONE (651) 644-5Q50 FAX (851)644-6675 January 22, 2003 SUBJECT: Public Hearing About the Proposed Farmer's Market Tuesday, February 4, 2003; 7 PM, City Hall Dear Property Owner; Enclosed is a copy of the legal notice about a public hearing to beheld regarding the proposed Farmer's Market on the north pazking lot of Twin Cities Co-op Credit Union . ~at 2025 West Larpenteur. This notice is being sent fo owners of all properties within 3$0 feet of the site. The hearing is part of the formal process of amending the City code to provide for this use and to set the conditions on this use. The hearing is open to the public. It will take place before the City Planning Commission at 7:00 PM on Tuesday,.Februaay 4,. 2D.03 in the. City. Council ,chambers. Sincerely, G~/Gr~ ~~ Heather Worthington ~ ~ .. .. City Administrator Enclosure • HOME OF THE MINNE50TA STATE FAIR AND THE U OF M ST. PAUL CAMPUS a . rrt~cm~us~ ~~ PRINTED ON REC CEN OF • FALCON HEIGHTS 2077 W. LARPENTEUR AVENl1E FALC.DN HEIGHTS, MN 55113-5594 PHONE (651) 644-5050 FAX (651) 644-6675 January 22, 2003 Dear Resident: . At the end of November, 2002, the City invited you to a meeting about a proposed Farmer's Mazket at the Twin Cities Co-op Federal Credit Union Building at 2025 Larpenteur Avenue. At that time, I told those in attendance that the city would continue the-pz~ocess of considering the proposal in the New Year before the Planning Commission and the City Council. . The first step in this continuing process is to hold a public hearing before the Planning Commission to take input from residents regarding two items: - 1) Amendment of the city's zoning ordinance as it relates to Interim Use Permits (ILJP); and 2) Provision of an IUP for a Farmer's Market at 2025 W. Larpenteur Avenue. Please plan to attend this important meeting so that we can get your feedback about the Farmer's • Market: Tuesday, February 4, 2003 7:00 p.m. City Hall Council Chambers -~: I have included notes from the November meeting, a map that vas handed out at the meeting showing the location of the proposed Market, as well as copies of the legal notice, and the draft ordinance. (You may have already received this information in a notice mailed to residents within 350 feet of the project, which is required by law). If you wish to discuss the proposed plan before the meeting, please feel free to call me at 651/644-5050, or a-mail me at hworthington@ci.falcon-heights.mn.us. I look forward to seeing you on the 4~'. Warmest regards, Heather Worthington City Administrator HOME OF THE MINNESOTA STATE FAIR AND THE U OF Nl ST. PAUL CAMPUS ° ~ PRINTED ON RECY TREE CITI'IISAI • ARY 10, 2003 What's the state's role in LGA vital to our quality of life BY dliN MILLER Guest Columnist 1- ifost Minnesotans don't think much beut local government aid or other aspects of the fiscal relationship between our state and local governments. Resi- dents know they pay taxes, mostly to the state, and receive public services, mostly from their dty, county and school district. But LGA is an important program that benefits all Minnesotans. It ensures - whetheryou live in an urban, rural or sub- urban community -that police are Patrolling your neighborhood, emergency medical services are available and streets are plowed. Minnesota cities historically have been limited by the state to the property tax as their main source of local revenue. While there are many. good reasons for this, it also means wide variation in each city's ability to raise the dollars needed for basic dty services. Cities with high property values can more easily raise money than cities with lower or declining property values. To address this disparity and ensure all Min- nesotans receive basic services, legisla- tors in 1971 created the LGA program. This Program provides revenue to does that have lower property values and higher need -police cars and fu's trod{s cost the same regardless of a dty's proper- ty tax wealth. Because Property wealth varies dramatically from city to, dty, the distribution of LGA also varies through- outthe state. To the casual observer, it may seem unfair that state-collected tax dollars are distributed unevenly across Minnesota through LGA. Residents of cities that receive little LGA may question the value of the program. But as with many public programs, LGA has indirect benefits for everyone, and there are consequences - perhaps profound -for all ff LGA is dis- mantled or significantly reduced. LGA is hardly the only program in which taxpayers' dollars are used to pro- vide services that have a direct benefit to some, as well as a broader, statewide ban- efit. FIOr example, state aid for schools ben- efits the children in each school distHct, and indirectly benefits all Minnesotans because our well-educated future work- force makes this state attractive to busi- nesses. Similarly, statewide tax revenues to Pond transit systems and highways pro- vide a direct benefit to the users of these systems. Transit relieves highway congea- tion, making commutes easier for other drivers. In addition, relieving congestion through ahigh-quality highway system and transit for workers improves . Min- nesota's business climate for the better- WWW.TWINCITIES.COM ^ ST. PAUL PIONEER PRES: OPI NION LEGISLATIVE SPOTLIGHT: Local Government Aid ment of all residents. LGA also has direct and indirect bene- fits. Taxpayers in dues that receive LGA can afford basic dty services without onerous property tax rates. LGA benefits residents of other does by ensuring that fire, police, emergency responders and adequate roads are available when they visit their parents in a dty 180 miles away, travel "across town" to the Mall of Ameri- ca, or visit the bluff country and lakes areas. LGA is a prudent investment in the state's continued eoonomic success. Min- nesota's overall. economic well-being is inextricably tied to the economic success of Greater Minnesota and the urban core. Without LGA, many of our cities could not provide basic services at reasonable tax rates. if the business climate and qual- ity of life in these does erode, Minnesota's economy suffers. Some people and busi- nesses will move to the urban fringe, abandoning existing infrastructure and creating tmther demand for new roads, sewers and schools. Others wlll stay Put, but be unable to achieve their Rill econom- ic potential. Others may altogether leave Minnesota. When these things happen, we all lose. Our state-local .Partnership. including LGA, must be preserved for our continued quality of life and the future well-being of all Minnesotans. ~ Miller (e-mail: jmiller@lmnc.org) is executive director ojthe League of Minnesota Cities. t: , funding local services? System needs reform, not rhetoric BY DON 3CHUMACHER Guest Columnist T Tnfortunately, in the debate aboi J local government aid, the does the lobby for taxpayer funds are ahead labeling the effort as a war between tb "haves" and "have note." The Pact is that, regardless of th budget defidt, legislators must recensit er LGA because, like maw other spent htg Programs, it badly needs to b reformed. Policy experts pointed out a least 10 years ago, the last time the for mina for distributing funds wa addressed, that Minnesota needed ti rethink LGA from the ground up rathe than simply change the formula. Taxpayers would be surprised, iP no appalled, ff they knew that two-thirds o the $565 million given to Minnesota dtie in 2002 was based on the spending Pat terns of does decades ago, not on need Only the remainhtg one-third of th money actually reflects a dty's need o ability to pay its own expenses. Under any budget scenario, this is no a funding formula based on logic, need o capadty Especially with the specter of $4.6 billion budget defidt, the local gov- ernment aid formula is a throwbadt to the budget dark ages. Erilightenment with respect to LGA should bring a new formula that applies to the entire amount and to all does. It should be based on measures of a dty's capadty to pay its own expenses and its unique needs (there should be few). This v ~rT "~` ~;~ - ` .;; ~ .+. •~ :: As lawmakers debate proposed cuts in local goverment aid, they need to consider the state's proper role in funding municipal services such as snow plowing, police and fire protection, libraries and parks. AT ISSUE With state government facing a huge budget.shortfall, the gover- nor and many lawmakers see state aid to local governments as a likely target for cuts. Some also would like to overhaul the formula for distributing the aid, which is based largely on past spending. For some cities, LGA funds 50, 60 and even 70 percent of the cost for munici- pal services. Schumacher (e-mail: dschumacher@ cretexinc.com) is executive vice president ojthe Cretex Companies, Elk River, and a former hoard chairman of the Minnesota ChamherofCommerce. t is easier said than done. However, 38,000 f layoffs in manufacturing and a $4.6 billion s budget defidt are two reasons to expect - that it can - no, must - be done. With LGA reform, there will be win- e Hers and losers. The losers, however, will r be those dty governments that have used LGA to ratchet up spending and have the t most capadty to manage the cuts. r A Jan. 19 article in the Pioneer Press a offers an example in the dty of Austin. About two-thirds of the city's $12 million budget comes from state aid while its Property taxes were the second-lowest in the state fora $100,000 home. Also, Austin has a cash reserve of $39 million. Many other Minnesota cities, like Austin, appear to have the capadty to, and should, withstand a reform of LGA, which is why property owners should be skeptical of Ute threat by some dty offi- dals to manage LGA reductions through property tax increases. Local governments have at least four options besides property tax increases. They can: ^ Reduce dty services or provide them less expensively. ^ Reduce overhead by looking at pub- llcemployee expenses, rents, etc. ^ Eliminate unnecessary programs and reduce others. ^ Use their reserves, at a minimum, as a bridge whfie learning to operate more effidently. No legislator contemplating LGA reform wants to hurt a needy city, but most. does in Minnesota do not fall into that category. Chios must face up to the fact that LGA will be modified and they should partidpate In the process. Min- nesota literally cannot afford to waste this opportW;;ty for reform. UNIVERSITY OF MINNESOTA r J • Office of the President February 7, 2003 202 Morrill Hall I00 Church Street S.E. Minneapolis, MN 55455-0110 612-626-1616 Fax: 612-625-3875 Dear Friend: SEE ~ ®200 In recent weeks, the state's difficult financial picture has overshadowed many other issues facing the University of Minnesota. As an organization that depends on state appropriations for a third of its funding, the University is planning for significant cuts from the state, and for the difficult decisions those cuts will necessitate. But even in -these challenging times, the University continues to engage in long-range planning. Today I am writing to update you on my thinking about a future home for Gopher football: As you are aware, in late November, the Minnesota Vikings rejected an on-campus stadium, stating that the site did not meet their needs for an NFL entertainment venue. I, too, developed serious reservations whether a joint on-campus stadium facility would yield the University's desired outcomes. The needs of a modern-day, for-profit professional NFL entertainment franchise and those of an academic institution are simply too difficult to reconcile. Although the joint stadium idea did not work, the time and resources the University devoted to planning a joint stadium have not been in vain. Most importantly, we have learned that significant support exists for bringing Gopher football back to campus. Further, our work with the Vikings indicates that an on-campus, Gophers-only facility may be a feasible option. Such a facility would be smaller and more consistent with campus aesthetics, and its calendar of events would be lighter, lessening the impact on our University community and adjacent neighborhoods. Any new stadium effort would need broad support across our campus and beyond it, and it must not divert academic resources or compromise our academic mission. Although we do not have a set timeframe, we hope to soon begin a more formal exploration of an on-campus, Gophers-only facility. Such an effort would include an evaluation of the potential for private fundraising for such a facility. I will keep you informed as this issue advances over the next few months. As always, your comments and ideas are welcome, and can be directed to me at upres@umn.edu or through the web site we've created to help keep interested people informed about the stadium issue: www.umn.edu/stadium. Sincerely, Robert H. Bruininks President C..oby ~ Cok~ccc,~ January, 2003 A digest of actions taken by the Metropolitan Council, Metropolitan Airports Commission, Metropolitan Parks & Open Space Commission and Metropolitan Sports Facilities Commission. Minutes of all Council and Commission meetings are filed with the Legislative Reference Library, 645 State Office Building, 6th Floor, in St. Paul for a period of up to two years and can be viewed by the public. Call the appropriate commission or operations area for meeting information and/or specific questions. Metropolitan Council The Metropolitan Council is located at Mears Park Centre, 230 E. Fifth St., St. Paul, MN, 55101. For further information regarding the contents of this publication, contact Sandra Lindstrom at (651) 602-1390. The Council's general number is (651) 602-1000, TDD: (651) 291-0904. Call the Metro Information Line at (651) 602-1885 for recorded information about upcoming Council meetings and regional events, current job openings and Section 8 housing information. Recent Council publications can be found at major public libraries in the Metro Area. Publications can be ordered by a-mail. The address is: data.center@i~~etc.state.mn.us Comments can be made to that address as well as (651) 602-1500, the Metro Council Public Comment Liire. Check the Internet web site at http://www.metrocounciLorg. The Council... Environment Council's Comprehensive Plan for the collection, treatment and disposal of sewage in the Metropolitan Area; • authorized its Regional Administrator to • issue a purchase order to DPC Industries to purchase Chlorine in Ton Cylinders and Sodium Hypochlorite (Bleach), and a purchase order to Hawkins, Inc. to purchase Bulk Chlorine, Sodium Hydroxide, Sodium Bisulfate and Nitric Acid. authorized its Regional Administrator to execute a Construction Cooperation Agreement with the city of Minnetrista for design and construction of the Council's L- 51 Forcemain Replacement Project between Enchanted Island and the mainland of Lake Minnetonka, MCES Project No.809004. approved the Comprehensive Sewer Plan for the city of Minneapolis. If a new combined sewer overflow (CSO) permit alters the timetable or requirements for improvements, then the city's plan must be amended to reflect those changes. • adopted a resolution which: • 1. determines that certain interceptors are no longer needed to implement the 2. places the interceptors on the Council's pending reconveyance list as of the date of Council action; 3. determines that the Council will use the procedures in Minnesota Statutes, section 473.5111, in order to dispose of the facilities; and 4. directs staff to evaluate the identified interceptors to determine if each continues to be of benefit for use as a local facility and the benefited local government unit, whether the interceptor is in good operating condition, and, if not in good operating condition, the necessary repairs and cost to put the interceptor in good operating condition. • authorized the General Manager of Environmental Services to hold a public hearing on the Draft South St. Paul Lift Station (L-65) Improvements Facility Plan. • took action to allow communities that were deemed ineligible to participate in the • • • reviewed the city of Lakeville's Comprehensive Plan Amendment and MUSH expansion request and informed the city that it could place the amendment into effect. • reviewed the city of Burnsville's Comprehensive Plan Amendment and informed the city that it could place the amendment into effect. • reviewed Linwood Township's Comprehensive Plan Update and took action to permit the township to put its Comprehensive Plan into effect. • reviewed the city of Shakopee's Comprehensive Plan Amendment and adopted the amendment with the following recommendations: 1. The city of Shakopee may put its Comprehensive Plan Amendment into effect. 2. The city of Shakopee should submit a copy of the inter-community sewer agreement to the Metropolitan Council Environmental Services once it has been signed by the cities of Shakopee and Savage. • reviewed the Savage sewer extension to Shakopee and recommended that the city of Savage put its Comprehensive Plan Amendment into effect. • reviewed the city of Prior Lake's Comprehensive Plan Amendment for Jeffers Pond and recommended that the city of Prior Lake place the Comprehensive Plan Amendment into effect. Transportation Improvement Program by replacing project TRF-TCMT-03J with three separate projects. authorized its Regional Administrator to enter into a contract with the City of Minneapolis for the Downtown Minneapolis Transportation Management Organization to pass through $575,978 of federal CMAQ funds for TDM activities, for the period of January 1, 2003 -December 31, 2004. • authorized its Regional Administrator to enter into a contract with the Midway TMO to pass through $120,000 of federal CMAQ funds for TDM activities, for the period January 1, 2003 -December 31, 2004. authorized its Regional Administrator to enter into a contract with MnDOT in the amount of $5,519,810 for the purpose of passing through federal CMAQ funds for regional TDM services. This action reflects an increase in CMAQ funds to add the Downtown Minneapolis TMO CMAQ grant into the administration responsibilities of the Metropolitan Council. • authorized its Regional Administrator to enter into a License Agreement with Seward Redesign, Inc. which has the following provisions: 1. The license allows Seward Redesign, Inc., as licensee, to construct protective works and footings on Metropolitan Council's LRT Maintenance Facility property within the period of February 1, 2003, to Apri130, 2003. If Seward Redesign's project is not complete by Apri130, 2003, Seward Redesign and its contractor must leave the premises. Transportation • concurred with the Transportation Advisory Board action to amend the 2003-2006 Page 3 The licensee, Seward Redesign, Inc., must indemnify the Council and MnDOT against any claims by the LRT design-build January 2003 Services, Inc, of Shawnee Mission, Kansas, for an amount of $19,437,285. The Council Also: authorized its Regional Administrator and its attorneys to proceed with all actions necessary and appropriate and which are consistent with the Council's discussion during the closed portion of the January 22"d Council meeting and to expend funds for legal proceedings arising thereunder. New Publications Council publications are available from the Council's Regional Data Center. For a free and complete list of publications, write the Metropolitan Council Data Center, 230 E. Fifth St., St. Paul, MN 55101, or call (651) 602-1140. E-mail address is: data.center@metc.state.mn.us There is a charge for some publications. The bimonthly Council Directions newsletter provides information on regional issues and Council Programs. If you wish to subscribe to Council Directions at no charge, call Dawn Hoffner at (651) 602-1447. Metropolitan Commission Activities Metropolitan Airports Commission • Metropolitan Airports Commission offices are located at 6040 28th Av. S., Minneapolis, MN 55450. For more information, call Lynn Sorensen at (612) 726-8186. The Commission: authorized the selection of National Content Liquidators to conduct a sale and removal of the contents of the Ramada Airport Inn and Excel Inn Hotel. These hotels are scheduled for demolition as they are in the Federal Aviation Administration defined runway protection zone for Runway 17-35. The Commission: recommended that the Metropolitan Council consider reimbursing the Minneapolis Park & Recreation Board up to $350,000 for the Plank Road phase portion of Mill Ruins Park interpretive area of Central Mississippi Riverfront Regional Park in the 2004-OS Metropolitan Regional Parks Capital Improvement Program under the terms of Park Policy B-7. • recommended that the Metropolitan Council: • awarded afive-year lease to Leather Care , Inc. Shoeshine concession at Minneapolis- 1. find the $71,569 special assessment St. Paul International, following against Lebanon Hills Regional Park certification of Leather Care as a from the City of Eagan for disadvantaged Business Enterprise firm by improvements to Cliff Road is the Department of Transportation. appropriate and consistent with the intent of MN Statute 473.334; Metropolitan Parks & Open Space Commission (MP&OSC) 2. consider reimbursing Dakota County for the $71,569 Cliff Road assessment Metropolitan Parks & Open Space Commission offices are located at Mears Park Centre, 230 E. Fifth St., St. Paul in a future regional parks CIP because • , 55101. For more information, call Sandi Dingle at (651) it is consistent with the terms of Park 602-1312. Page 5 January 2003 • approved the bids and awarded the contract for the 2003 Concessions Renovations Project to Construction Results Corporation for the base amount of $293,900. • Page 7 January 2003 v c. Usage '~~ r Channel ~~ Time: Wednesday, January 8, 2003 16:14:45 Report range: 12/01/2002 - 12/31/2002 • Channel Description Total plays Time used 1 1 Arden Hills 16 1 1 hour and 52 minutes 2 Falcon Heights 16 ~ 39 35 hours and 56 minutes 4 Little Canada 16 134 124 hours and 34 minute: 8 Roseville 16 37 95 hours and 21 minutes 9 St. Anthony 16 1 5 hours and 13 minutes 10 Shoreview 16 1 0 hours and 14 minutes 14 CTV14 2570 258 hours and 37 minute 15 CTV15 2126 302 hours and 48 minute; 98 CTV98 1 6 hours and 0 minutes 100 Test And Tranning 2 0 hours and 4 minutes 112 Suburban Community Chanr 2 12 hours and 0 minutes 127 Producers Dub Center 3 0 hours and 54 minutes 128 Receptionists Dub Center 3 3 hours and 1 minute 1..A total of 4920 video programs were ordered. 2. The system was used for 846 hours and 34 minutes. 3. The average use was 28 hours and 13 minutes per report day. 4. The average use was 27 hours and 39 minutes per week day. 5. 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Hits~JC KBytes URL 1 7 t ~ r3 13;13; 6' ~ r 2 16.os4•~t 7.41~-i,t ~ _~7~~~ 81? Q~ ~ ~ 1 S.o7°•~~ 0.044•u' L_._.. ._-; ----ci^o~,°~ / «~t~Ci1~1;S:`~)CCO~-)(1-~i 1'i)Ill f ~.r____----- ~~.ebc.)sts!fihp~O?-IU-~~ ra(n 1/30/g3 4:30 I'; hltp:i%fali•un-h~iihl~.clvl~.orgl;tal~:usnc_2(11)'_12.hlmi Pllel: nl4 ~ ~ ~ zoos • To our Friends at the City of Falcon Heights, The following is a brief report on Northwest Youth & Family Services' programs that directly affect the residents of your community. If you have any questions about this report, please call Kay Andrews, Executive Director, at (651) 486-3808 ext. 243 or Amelia Maijala, Development Associate, at (651) 486-3808 ext. 228. City of Falcon Heights Report Period: Jan. 1, 2002 to Dec. 31, 2002 Annual City Contract for Service 2002: $7,1g7 Your contract for service covers mental health, diversion, youth-run business and senior chore programs. All other services are provided as an additional benefit. In addition to city support, NYFS actively seeks operating funds from foundations, businesses, state and county contracts for service, civic groups and individuals. Through this collaborative effort, we are able to fund a wide range of services to families and • individuals in need. Total. market value of contracted services through Dec. 31: $4 995 Total market value ofnon-contracted services through Dec. 31: X125 Total market value of all services through Dec. 31: $5,120 (Please note that these numbers represent the market value of services provided, not what NYFS charges for these services. Because of your collaboration with NYFS, many of these services are offered free of charge or on a sliding-fee scale based on income.) Contracted Services: Market Value # Served Hours of Service Mental Health Counseling $1,425 4 Clients 1 ~ Diversion Services $3,050 15 Youth 85 Youth Run Business $0 0 Youth 0 Senior Chore Seniors $420 1 Seniors 21 Senior Chore Youth $100 1 Youth 5 Non-Contracted Services Market Value # Served Hours of Service Family Support Project $0 0 0 Summer Camp Program $0 .' p 0 Project Engage $0 0 Youth 0 Family Community $0 0 Family 0 Support Services • ACE-All Children Excel $0 0 0 Community Social Work $125 2 Families 3 i ~ • L` STATE OF MIr11~TE~OTA OFFICE OF GOVERNOR TIM PAWLENTy Igo State Capitol.. Saint Paul, MN 55155 FOR IMMEDIATE RELEASE: February 18, 2003 Contact: Leslie Kupchella (651) 296=0061 Communications Office (651) 296-0001 GOVERNOR PAWLENT3~ .PRESENTS BUDGET THAT :MAKES "TOUGH CHOICES FOR A BETTER FUTURE" --Largest budget in state history controls spending, rloes not raise taxes-- Saint Paul -Saying his budget fulf lls the promises he made to Minnesotans, Governor Tim Pawlenty unveiled a balanced budget today that controls state spending, does not raise taxes, restores the State's budget reserves, and protects K-12 classrooms from budget cuts. The budget will increase state spending by one billion dollars - oi- 3.8 percent -over the last biennium. "The enormity of the budget crisis we are facing today will unquestionably demand Minnesotans look at their state government in a much different way," said Governor Pawlenty. "The days. of a program for every problem and a state government that leads by blank check are over. State government can -and will -live with just a billion dollar raise." The budget Pawlenty presented wipes out a projected budget shortfall of more than four billion dollars for the-two-year state budget that begins on July I, 2003. Reducing forecast spending by nearly $2.86 billion as well as tapping the state's tobacco settlement reserve and other one-time sources of funding provides a balanced budget without raising taxes. Highlights of Governor Pawlenty's budget include: K-12 Education: Protecting classroom funding from budget cuts. The K-12 spending per pupil will increase from $7,633 to $7,799 - an increase of 2.2 percent. • • Higher Education: Increases student financial aid by $60 million to offset reductions at institutions. At a time when fhe average budget reduction for state agencies is l 5 percent, the University ofMinnesota will see its total revenue reduced by just five percent and Minnesota State Colleges and Universities (MnSCU) by six percent. --more- Voice: (651) 296-3391 or (800) 657-3717 • Fax: (652) 296-0056 • TDD: (651) 296-0075 or (800) 657=3598 Web site: htty://wrvw.eovernor.state mn us An Equal Opporhuiity Employer ,.. i ~~ Health and Human Services: Maintaining the integrity of Minnesota's "safety net," while controlling costs and retaining our position as one of the most generous states in. - - .supporting its needy children, elderly and persons with disabilities. Currentl y, the State _ spends 46 percent more per capita on health and human services that the-national . average. Governor Pawlenfy's budget increases spending for health and human services by eight percent, but controls costs. by. prioritizing and re-directing resources to protect core services. The Governor. is also recommending that 2.5 cents of the existing tobacco tax be redirected to fund medical education and research. • Aid to Local Governments: Protecting the original purpose of local government aid (LGA) to assist needy communities in providing.police, .fire and other basic services.. - Under Governor Pawlenty's plan, cities would see a 6.2 percent average reduction in total r€venues, and counties an average reduction of 2.4 percent.: By enacting tough levy limits and reverse referendum, increases in property taxes will be limited to .protect taxpayers. _ - "When you look at the challenges facing Minnesotafamilies today, from being laid offfrom their jobs to seeing_their.fathers and mothers sent off to fight in .the war on terror, the challenge of making state government live within its means seems miniscule. But we must make the tough choices today to ensure a brighter future just a few years down the road," Pawlenty added. Full details of Governor Pawlenty's budget plan are available at www: ~ovemor.state.mn us. . --30- Voice_ (65I) 296-3391 or (800) 657-3717 • Fax: (651) 296-0056 • TDD_ (651) 296-0075 or (800) 657-3598 Web site: http://wwrv.QOVernor.state.mn us An Espial Opportunity Employer Minnesota's Budget Tough Choices Today for A Better Future Tomorrow Governor Tim Pawlenty February 18, 2003 • Governor Pawlenty's FY 2004-OS Budget $28 Billion General Fund Budget-Puts Public Dollars Where Most Needed General Fund Spending $28.120 Billion Higher Education 9.1 °~ Property Tax Aids/Cr 9.4°k E-12 Education 43.5°h Governor Pawlenty's FY 2004-OS Budget ,Environment $ Agric 1.5°k .Economic Development 1.2°k .Transportation 0.6°~ Criminal Justice 4.9°k State Government 1.9°k Debt Svc & Other 3.0°k 1 1 ,~~~ Budget is $46 Billion With Highway, Dedicated, and Federal spending All Operating Funds $46.031 Billion ,~-,~~' 4 .\ :}teatfh & Fiumari'~erv~ces ~ Higher Education ' , , ~' 35 Ta~ " \~ Environment 8 Agric 5.7°k 2.5% Economic Development Property Tax AidslCr 3.3% 5. k Transportation E-12 Education 9.8 /° 29.T% ''~ Criminal Justice 3.4% rState Government 1.9°h Debt Svc 8 Other 2.4°A Governor Pawienty's FY 2004-OS Budget Five Key Goals / Improve educational achievement / Ensure public safety / Ensure adequafe heath care / Increase jobs and economic opportunity / Enhance transportation Govemor Pawlenty's FY 2004-05 Budget • 2 ~"% This Budget Meets Today's Economic ~_ Realities / Meets challenge of a $4.5 billion shortfall caused by growing spending, recession and slow economic recovery / No tax increases are proposed / Brings spending back in line with available revenues / Provides essential state services most critical to state taxpayers Governor Pawlenty's FY 2004-05 Budget Decisions Were Based on Sound Financia l Management Goals / Resolve the immediate fiscal crisis / Restore stability and predictability to state finances / Rebuild the budget reserve to manage future risks / Permanently adjust spending to match revenue growth / Address shortfall in a way that will permit future investments in priority areas ,/ u Govemor Pawlenty's FY 2004-OS Budget 3 ~~~~ The Problem is Not that We Don't =~ Tax Enough / Minnesota ranks 6rh in total state and local taxes per capita / The current budget is spending $1.9 billion more than is being collected / Forecast revenues will grow $1.7 billion (6.6 percent) -not enough to fill the current spending hole / Spending was projected to increase $3.9 billion (14.3 percent) Governor Pawleniy's FY 2004-OS Budget `~ We Spend More Than the Majority of ~~ ` ~~ All Other States State and Local Spending Per Capita Adjusted for inflation (in 2000 $) -~ Minnesota $3, 66 t US Average 89 90 91 92 93 94 95 96 97 98 99 00 Govemor Pawlenty's FY 2004-OS Budget • ;~ 4 • FY 2004-05 Budget Key Elements / Revenues - Based on revenue growth of $7.7 billion - no fax increases - Eliminates tobacco funds, dedicating portion of existing cigarette taxes - Redirects several dedicated revenues sources and balances to the general fund - Merges Health Care Access into the general fund - Limits fee increases Govemor Pawlenty's FY 2004-05 Budget FY 2004-05 Budget Key Elements / Spending - Increases spending by one billion dollars - or 3.8 percent over the forecast for FY02-03 - Holds K 72 revenues per student constant - Reduces growfh in Human Services spending - Reduces spending in other budget areas by an average 75 percent - Recommends atwo-year public employee pay freeze to minimize job losses and service impacts Governor Pawlenty's FY 2004-OS Budget 5 We Faced a $4.5 Billion Problem in the November Forecast Fy02-03 FY04-05 Beginning Balance $1,574 $(332) Revenues 25,194 26,857 Spending 27,100 30,975 Reserves 24 -.- 110 --- Forecast Shortfall $(356) $(4,560) Governor Pawleniy's FY 2004-05 Budget Governor's Proposed Budget Solves the $4.5 Billion Shortfall Forecast Governor FY04-05 FY04-05 Beginning Balance $(332) 186 Revenues 26,857 28,438 Spending 30,975 28,120 Reserves 110 500 Forecast Deficit $(4,560) $4 Governor Pawlenty's FY 2004-OS Budget • :~ 6 ~~ i• ~`% The Governor's Budget Holds ;, Spending Growth to 3.8 Percent • Change 25% 20% 15% 10% 5% 0% 19~~~ ~99~ g5 Biennium Govemor Pawlenty's FY 2004-05 Budget 499a 99 A3 1~~~ z' Four Parts to Governor's Budget Solution Forecast Shortfall for FY04-05 ($4,204) / FY 2003 Plan 186 / Expenditure Reductions 2,855 / Revenues & Other Resources 1,581 / Increase Reserve to $500M (414) Balance $4 Governor Pawlenty's FY 2004-05 Budget 7 Governor's Proposal Includes Unfinished FY 2003 Items - Refinance Transportation Projects $110 - Reduce HESO Reserves 30 - Workers Comp Fund Balance 15 - Airports Fund balance 15 - Solid Waste Fund Balance 11 - State Operated Services Balance 5 Total - FY 2003 Recommendation $186 Govemor Pawlen}y's FY 2004-05 Budget Governor's Budget Reduces Forecast Spending by $2.8 Billion / Permanent Spending Reductions $(2,498) / One-time K-12 Payment Change (357) Total Reductions from Forecast $(2,855) Governor Pawlenty's FY 2004-OS Budget 8 • -% But Spending Will Still Increase One Billion - 3.8 Percent Nov Fcst Gov Rec FY02-03 FY04-05 Chg. E-12 Education 10,725 12,582 17.1 Pay/Prop Tax Shift (445) (357) nm Property Tax Aids ~ Credits 3,389 2,633 (22.3) Higher Education 2,806 2,552 (9.1) Health 8~ Human Services 6,527 7,022 7.6 Environment 8 Agriculture 486 419 (13.9) Economic Development 433 326 (24.7) Transportation 451 161 (64.3) Criminal Justice 1,368 1,387 1.4 State Government 678 561 (17.3) Debt Service 8~ Other 682 837 22.7 Total Spending 27,100 28,120 3.8% Governor P°wlenty's FY 2004-OS Budget Spending Reductions Reflect `~ Governor's Priorities and Principles Forecast Governor's Percent Share of State Changes of Total Budget FY 0405 Reduction -12 Education 41.6% $(295) 11.8% Higher Education 9.4% (358) 14.3% ocal Aids 10.6% (638) 25.5% ealth & Human Services 25.3% (819) 32.8% II Other 13.1 % (388) 15.6% Total, FY 2004-05 $(2,498) 100% Governor P°wlenty's FY 2004-05 Budget 9 Plan Increases General Fund Resources b~y Nearly $1.b Billion One-time Resources ($millions~: / Balance from tobacco funds $1,029 / Repeal June sales tax buyback 160 / Health care. access fund balance 166 / Transfer from other funds 29 Subtotal 31 84 Permanent Revenue Changes 197 Total -Revenues & Transfers $1,581 Governor Pawlenfy's FY 2004-05 Budget ~~ Budget Provides fora $500 Million r "~ Budget Reserve r _. ($ in millions) 3.5% of 2005 1,00 expenditures 800 t 600 $500 400 r ~ nf: - $- 0 - .~±, ~ ~^ ~ - ,z -.: 200 ~ ~, ~ h fl ~1 ccr~u fK .a 5 JVlrll o ; , `` j 4 . _ 0 I I i FY 91 FY 93 FY 95 FY 97 FY 99 FY 01 P /m. G V BUDGET Governor Pawlenty's fY 2004-05 Budget • ;~ 10 • $12.941 Billion GF E-12 Education / Goal: protect funding going to classrooms and • preserve school finance and property tax reforms - Revenue per student increases from $7,633 in FY2003 to $7,799 in FY2004 (+2.2%) - Districts protected from short term impact of reform by "hold harmless" provision - Eliminate automatic growth in special education and adult basic education; add $20 million for special education cross subsidy aid - Eliminate the impact of 2001 property tax reform on formulae linked to the general ed formula allowance Governor P°wlenty's FY 2004-05 Budget E-12 Education $12.941 Billion GF / Goal: protect funding going to classrooms and preserve school finance and property tax reforms - Increases accountability by capping learning year pupil units at 1.0 - Restructure equity revenue and increase referendum equalization - Increase accountability by setting a 5-year limit on funding for Limited English Proficiency services - Improve accountability by reviewing the school finance system and proposing a plan to better link finances and achievement Govemor Pawlenty's FY 200405 Budget 11 • $2.552 Billion GF Higher Education / Goal: preserve a competitive higher education system - Minimize impact of budget cuts on students by , increasing financial aid - Put dollars into the hands of students to encourage competition and choice - Limit tuition increases to no more than 15 - Stabilize funding for the Academic Health Center by earmarking 6.5 cents per pack of current cigarette taxes - State appropriations to the U of Mn and MnSCU are reduced by 15 percent Govemor Pawlenty's FY 2004-OS BudgeT Health and $7.022 Billion GF Human Services $16.421 Billion / Goal: preserve state's safety net programs at affordable cost and benefit levels - Consolidate children's and public health funding streams to focus on results not rules - Maintain safety net with new efforts for children's mental health and adoption assistance - Dedicate 2.5 cents per pack of cigarette tax to maintain medical education funding - Reduce Medical Assistance costs through changes in ~ eligibility, utilization and provider payments Governor Pawlenty's FY 2004-05 Budget • 12 • Health and $7.022 Billion GF Human Services $16.421 Billion / Goal: preserve state's safety net programs at affordable cost and benefit levels - Create single state program for adults without children, merge GAMC with MinnesotaCare - Comprehensively manage health care programs by merging Health Care Access into General Fund at end of 2005 - Eliminate subsidized health insurance for higher-income adults ~~ Governor Pdwlenty's FY 2004-OS Budget Locat Aids $2.633 Billion GF / Goal: reform state aids to local governments by moving to a need-based formula - Reduce state aid to local government to a sustainable level -changes still less than state government reductions - Cap reductions so no city or county is disproportionately impacted - Recognize difficulty facing jurisdictions that haven't raised property taxes recently Governor Pawlenty's FY 2004-05 Budget 13 $2.633 Billion GF Local Aids Goal: reform state aids to local governments by moving to a need-based formula - City aids reduced by $435 million or 6.2% of total revenues - County aids reduced by $189 million or 2.4% of total revenues - Levy limits are strengthened and reverse referendum enacted to restrict local property tax increases Governor Pawlenty's FY 2004-05 Budget Environment and $419 Million GF AgyiCUltuYe $1.137 Billion / Goal: protect Minnesota's natural resources, recreational opportunities and agricultural economy - Continue to provide an ethanol subsidy but a lower rate - Restructure PCA's environmental funds, redirect to the highest priorities - Keep all parks open, but reduce services at some - Increase a limited number of fees to recover costs - Reduce grants for recycling, soil and water programs - Consolidate support services for Agriculture, Animal Health Board and Agriculture Utilization Research Institute Governor Pawlenty's FY 2004-OS Budget • • 14 • Economic $326 Million GF Development $1.532 Billion / Goal: preserve job training programs - Implement merger of DTED and DES - Reduce some grants to businesses and grants fbr contaminated land cleanup - Reduce some housing programs, preserving funds that serve lowest-income populations - Eliminate duplication of programs serving Minnesota businesses - Co-locate minority council to reduce administrative costs Governor Pawleniy's FY 2004-05 Budget $161 Million GF Transportation $4,489 Billion Goal: make the transportation agencies work better to free-up resources for needed improvements - Reduce MnDot operating expenses to provide funds for an enhanced transportation package - Reduce transit funding while minimizing impact on services - Share costs for LRT operations with jurisdictions that benefit from the line Governor Pawlenty's FY 2004-OS BudgeT 15 -~-.~-~ $1.387 Billion GF :~; ~~ Criminal Justice r--~ $1.561 Billion Goal: maintain safety and security - Double bunk inmates at two facilities to meet growth demand A - Shift some short-term offenders to local jurisdictions - Reduce grants for county corrections programs and victims assistance - Encourage greater efficiencies and savings in Court and public defender operations Govemor Pawlenty's FY 2004-05 Budget 3 - $561 Million GF ~~ State Government } $872 Million ~~ / Goal: reduce state operating overhead, while maintaining core functions - Reduce the overhead costs of central administrative agencies, to relieve pressure on other agency budgets - Increase tax compliance activities - Change financing so that Racing Commission, Gambling Control, Amateur Sports and Campaign Finance are self-supporting - Streamline state government through reorganization and restructuring Governor Pawlenfy's FY 2004-05 Budget • • 16 i~ • • Making the Tough Choices Now ~, '~ Turns Ga s into Positive Balances 1000 Revenue S endin Ga mil 500 O A -500 -1000 -1500 Governors Budget -2000 November -2500 Forecast FY02 FY03 FY04 FY05 FY06 FY07 Govemor Pawlerrty'a FY 200M05 Budget . I ,4 ti.t ~fr'N „!z kit ,,,s~ L ,r;; ~~ ~~ v..,~; Access Budget Documents at www.finance.state.mn.us/budget~operating +~~~nr. ~Ylo://wvnv.ludaetatalamnlre/bud?el/o0aa1 .~:. ~y Via'. O tel. `t/ 11.1 :~ b' _ 1 tL1'.'E'~ 4 ~ -f+ 'b ~' ~I 314. ~ . f5' ~ ~ ~ ,_ _ -~ ~~~ 6DOntnvr,. - F p ~ E M. ~_ -, d j ~'' ' 4gency Profile ~ ~ ~ ' -iseal Report +~Wbav Peri +t pr a rl.m,o " ~ ~rogrem: HEALTH IM - elnemr rJwm ame tit.n..r u.oween a ~ ~ilww laq+i a mwa.•a: mwnan, wa b..ew rte rw, ld'x.rdna gewlmwn a nwn marl; a ~ nnmm el aeu..wna.w 1 Narrative { i - .; 7 Fiscal Report - . ww er n, q, vam IweM naaaelwvw b rw wlr b uw .ma. awe P+iw Iman wwwT erd w„a G°1pn'•t j _ b { - x ~ 1 Activity: COMMUI ~ kayl Pbm IWn.~. 1.1wY Iww„~~. J olwr wPxlalnvn b owrww PePwla M wamcl pall Iws ammE en Nen.wnM wwwYm br. j °"'J °A Ib anb,y eaoe a a>ow. mw~,,.. _ { ~ 1 Narrative { '~ ~ wla •wrrs n, Iw.ln a wmr• ,w.wnren aN naa rw ual Pwwb awa ww .m. um .wew a ear mwteprQ Iww was Iwan M W h mae rM Matla paxml tloam i ~ I `] Fiscal RepoN . I exm m a lsm M _ l"' ~.€ F `Activity: FAMILY I aP vv ~ oen Iw.a nva. lgtca.r: now. popwns .. cw.iuba b bnga. v ImPaw nwni. ww a n wwn rslvw.s, b eownaaww ma u : ~ ' ~: Fiscal Report ~~ . . ib ma, arePae. ralmawar.nlwvwl awwbne meow. I i -~ Namtive nrnl o~~wan-e.~ae aeaegAOab no T,w, "I can Funcllelw qwe a,a wwr ,w.o.w aim ebbaw•. m wl.b mx a cwmu. mw bmun w".aeima,q b nma wa.uw mr R a++w. ~ is i 4y ~Aetivity: HEALTH l p ma.e een,ew., Iro aawmwns owe ~..•~, ae I ~', Narratire I - i E "1 +gw awnw a.r la,awiby. eeu ma wa+a.a9 mawlwan+ewbew na pbm . . . ~' ~ ~ F` ^1 Activity MINORR I , I {~~. _y Narrative I - ..e r~wrbaio) gwnre mql tloaao wtl mnagwr aesa uhsekn. mil Is nc ePaaG I awn. 7 waPe. wuru.w ala wall bVwww axwm: ad+Yeamua mPn MmnJ YMV:h615, 16. iii ab JMr TM my.bwMe Ptaa hWn 18w www wulya• o enm a l m mw aM 1 ~ ~ y a • • r 11 Governor Pawleniy's FY 2004-05 Budget 17 v. ~,. ;f~ A Vision Of Government Tough Choices Today for A Better Future Tomorrow Governor Pawlenty's Fr Zoos-os sodyer Governor Tim Pawlenty • 18 Minnesota Governor Pawlenty's Proposed Budget r-, Budget Summary and Policy Highlights • ~~~~~ ~~ ~~~T~~~~r ~~m ~~~~~~.t~~ .~ ~~~~ St~te~ ~~~itt~I ~ ; ~ ~~~~: ~3~. Itilart-in lbttt~£~r ~i.n j~•. ~c~t~l~~l ~r~,~ ~ ~L~~r7t P~t~~, ~~i_ ~~"1 February 18, 2003 To the people of Minnesota and their 2003 Legislature: This letter conveys my recommendations for the State's budget for the next two years. The message is both somber and hopeful. We have done what the critics said was impossible; this budget fulfills our constitutional duty to propose a balanced budget-eliminating the $4.5 billion shortfall projected in November-without raising taxes. The Pawlenty-Molnau Administration holds the fundamental principle that Minnesotans are not undertaxed. Minnesota is consistently one of the highest-taxing states, and I don't believe we can help jump start our shaky economy by raising taxes. We made a promise to people that we-would not solve the budget crisis by raising taxes, and with this budget, we've delivered on that promise. The only way to do this is to rein in the growth in government spending. While the November forecast projected increased spending of 14.3 percent, this budget holds the growth in spending to 3.8 percent. This achievement is unprecedented in recent years: the average rate of biennial spending growth over the past 20 years is 12.9 percent. However, in spite of the spending discipline required by this budget solution, this will still be the largest budget in state history, increasing by one billion dollars over last biennium. Balancing the budget and controlling state spending will not come without some sacrifice. All Minnesotans will feel the budget pinch in some way. But just as every Minnesota family must spend less when they earn less, so too must state government. This budget spends $28.1 billion from the General Fund, and we've focused our investments on the highest priorities. In my view, our most important budget responsibility is to provide funding for quality schools that are accountable to parents, students and taxpayers. We have done our best to shield K-12 classrooms from reductions and maintain school revenue per student at current levels. We have done our best to shield K-12 classrooms from reductions; in fact, this budget results in a 2.2 percent increase in school revenue per student. One of Minnesota's greatest challenges over the next few years is to make progress on building a transportation system to meet the demands of the 21st Century. We begin the process in this budget by reducing overhead spending in the Department of Transportation to reinvest that money into an accelerated road construction program. In the coming weeks, the Administration will release the details of our plans to increase investment in this infrastructure that is so critical to our state's economic growth and quality of life. (more) • ~'c~z~:c: t~~l? ?~?is-3331 ~a~ (~C; j 6~:r-,.~; l r" 1=azx: f~;i1. ~ 2~i~-'~(l~~? '"L~I~: f~;>1 j 29~-Jtliw or (~il~t ~;~i-.~s~9 Lt;l,-~ Nate: htt1~: t ,~ ~~f~}~~.~overnz~:°.yt~tc.n~tt~.~s~ ~,r ~q~s.al "~17port~aa~at~= l~rnplc~.>c~~ ~`'C1T?T£.'Ct d)i: Pi:Ct"~~C:d'7 ~?Y.~'t'T` C471:~i31T11Ti=; ~J':%o C7C)SI S°i75?S!11T'TE'i" T3'ili~L:x"1~~ Budget Transmittal Letter/Page 2 • As I said in the State of the State address, I don't want to manage government, I want to change it. While the challenges before us are great, and sacrifices will be required, we should also view this as a great opportunity to focus government on what's most important and to improve the way we do things. The primary way we'll accomplish that is through our spending recommendations: "doing the right things well," and eliminating spending that is not a high priority or not a particularly appropriate role for government in a time of scarcity. But we will make other important changes as well: • Recreating the state Department of Education, focusing its efforts more directly on the core mission of improving public education and holding it accountable; Implementing the long-planned merger of the Department of Trade and Economic Development and Economic Security to reduce administration and improve the performance of our workforce development efforts; Changing funding practices so that entities such as the Racing Commission, Gambling Control Board, Amateur Sports Commission, and Campaign Finance and Public Disclosure Board are paid for by user fees_ Finally, we must work to return the state to fiscal stability. My budget restores the Budget Reserve to $500 million by the end of the biennium. Part of the responsibility to balance the budget is to prepare for the possibility of economic conditions worsening by putting some money aside for a future rainy day even while it's still stormy outside. The budget also assumes a return to structural balance in the 2006-07 biennium, including some modest growth in the basic K-12 education funding formula. These provisions are crucial to the state's financial health. The challenges before us are daunting, but we are up to the task. The citizens of the state deserve no less than our collective courage to make the difficult decisions that are required. Sincerely, `~ ~--, Tim Pawlenty Governor of Minnesota ` ~ ~ ~ -- _ ~ `.~'ropased Budget .~:~~pend,7,~i.~res _. FY 2004-05 General Fund Budget Distribution of Expenditures Category Dollars in Millions State Government 2% Crirrrnal Justice 5% Transportation 1% Economic 1 % Environment & Agriculture 1% E-12 Education $12,222 Property Tax Aids & Credits 2,633 Higher Education 2,552 Health & Human Services 7,022 .Environment & Agriculture 419 Economic Development 326 Transportation 161 Criminal Justice 1,387 State Government 561 All Other 839 Total $2s,12o All Funds: General, Special Revenue, Federal Distribution of FY 2004-OS Spending Category Dollars in Millions Property Tax Aids & Credits 6% Higher Education 6% E-12 Education $13,682 Property Tax Aids & Credits 2,634 Higher Education 2,610 Health & Human Services 16,421 Environment & Agriculture 1,137 Economic Development 1,532 Transportation 4,489 Criminal Justice 1,561 State Govemment 872 All Other 1,093 TOta ~ $46,031 Governor's 2004-05 Budget 1 ~"ih~i±g~i Highlights: The Governor's 2004-05 Budget Solving the Budget Shortfall is The Governor's proposed budget for FY 2004-05 responds to the fiscal crisis facing the state in away that recognizes the economic realities facing all Minnesotans. The Governor directed that budget problems be solved without tax increases, that spending should focus on essential state services and that budget priorities be maintained through reallocating, restructuring, reducing or eliminating some state programs and grants. • Balances the budget meeting the challenge of a $4.2 billion shortfall caused by growing spending, recession and slow economic recovery • Avoids increasing taxes to balance the budget • Brings spending back in line with available revenues • Provides essential services most critical to state citizens The budget defines how the Governor intends to use state resources to improve the lives of citizens while limiting govemment to its appropriate roles. The budget plan is designed to pay for core state services and provide a prudent plan to restore Minnesota's financial stability. Taxes, Other Revenues & Resources General fund revenues are forecast to grow $1.663 billion or 6.6 percent iri the FY2004-05 biennium over the current biennium. The Governor's budget adds $1.581 billion in available resources through a combination of one-time and permanent revenue changes - as well as a $186 million increase to the balance from FY 2003. • Eliminates the tobacco funds in FY 2004 transferring $1.029 billion to the general fund. • Repeals the June sales tax acceleration buyback eliminating $160 million in revenue loss in FY 2005 under current law provisions. • Consolidates the Health Care Access Fund into the general fund resulting in a one-time revenue gain of $166 million in FY 2004-05 from the funds projected surplus. Projected future shortfalls for the fund are managed within the Governor's recommendations for the general fund. • Transf®rs $29 million from state special revenue funds including $10 million from the state govemment special revenue fund, $10 million from the solid waste fund, and $9 million from other dedicated accounts • Permanently Increases revenues associated with Human Services programs by $178 million by increasing the Medical Assistance Surcharge, increased RTC collections and other DHS collections • • Governor's 2004-05 Budget Hi;~~i l i~~i t • Redirects several dedicated revenue sources into the general fund including the motor vehicle title transfer fee, 2 cents per pack of cigarette tax currently dedicated to the future resources fund, lottery-in lieu receipts and unclaimed lottery receipts. Dedicates 9 cents per pack of the general fund cigarette tax to replace money for medical research and the academic heath center from the tobacco funds. • Limits fee increases to those directed at recovering program costs and where there was a compelling rationale to make programs self-supporting. • Requires action on unfinished ftems from FY 2003 that total $186 million. Recommendations include refinancing $110 million general-funded transportation projects and $76 million in one- time transfers from special revenue funds. Spending For the 2004-05 biennium, General Fund spending will total $28.120 billion. This is an increase of $1.012 billion over the current biennium, or 3.8 percent. Compared to the November 2002 forecast projections for FY 2004-05 spending, the proposed budget represents a reduction of $2.855 billion, or 9.2 percent of forecast spending. • Shields K-12 classrooms from budget cuts by increasing K-12 revenues per student from $7,633 in FY2003 to $7,799 in FY 2004, a 2.2 percent increase -and by providing an additional 1.3 percent increase in FY2005. The E-12 education budget will total $12.6 billion, an increase of 17 percent over the current biennium in order to meet commitments for the state to pay a greater share of school costs resulting from education finance and property tax reform. • Reduces forecast growth in Human Services spending from over 20 percent to just under 8 percent. Provides for general fund spending of nearly $7.0 billion, with recommended budget changes to address the cost pressures that have made this the fastest growing area of state spending.. • Moves dollars from higher education institutions to students. Provides nearly $2.6 billion in state funding, a 9 percent reduction from current levels. Reductions to the post-secondary systems are mitigated by increases to financial aid programs and limits on tuition increases. • Redefines local aid programs and formulae focusing local aid programs on assisting Minnesota communities with basic services. Slightly over $2.6 billion is provided, but this represents about a 22 percent reduction from the current biennium. The Governor recommends both levy limits and reverse referendum as tools to hold property taxes in check as funding reforms are put into place. • Reduces spending in other areas by an average 15 percent -state agency operating costs are reduced, as are lower priority grants programs. Reduces the number of state positions, state contracts and purchases. • Begins re-engineering the way that state government operates to more effectively deliver services in a less costly manner. Consolidates a number of smaller agencies, reduces duplication and overlap, eliminates low priority activities, while making others self-supporting. • Freezes public sector wages to restrain the growth in state, local and school district costs. Recommends atwo-year public employee pay freeze to minimize job losses and service disruptions. Governor's 2004-05 Budget f, _-- Hl~~LZI~'~tS Reserves, Financial Management • Restores the budget reserve to $500 million, about 3.5 percent of FY 2005 recommended spending. Directs that any future forecast balances first be used to restore the reserve to $653 million. • Closes the structure) gap In revenues and spending through FY 2005, and produces a positive structural balance in FY 2006 of $302 million and $786 million by FY 2007. r~ • Governor's 2004-05 Budget 4 ' 1~-eeting the Fi~c~l C]ll~n ~.: C, An Opportunity for Change It is clear now that the U.S. economy is taking longer than expected to recover from the economic downturn of the last year. This fact, combined with rapidly growing state spending, has contributed to the $4.2 billion shortfall faced in putting together the FY 2004-05 budget. This shortfall is by far the most dramatic fiscal crisis Minnesota has ever faced. Governor Pawlenty's budget addresses this fiscal crisis -and uses the resolution of Minnesota's fiscal problem as an opportunity to make the necessary, critical changes to position Minnesota for the future. The changes reflected in the budget are not an end, but rather must be part of a different vision of state spending and government and the beginning of change. The Governor's budget is premised on the strong belief that Minnesota can resolve the fiscal crisis and emerge with more efficient government, stronger communities and a different blueprint for the future. Unless action is taken to change state spending trends, taxes and financial resources that will be available over the next decade will not be sufficient to avoid chronic and recurring deficits. Tough Choices The f=Y 2004-05 budget defines how the Governor intends to use the state budget to provide essential services to Minnesota citizens while limiting government to its most appropriate roles. The plan is carefully designed to pay for needed state services and preserve the state's economic and fiscal health for the next four years. The Governor's budget was based on five key goals: • Improve educational achievement • Ensure public safety • Ensure adequate health care • Increase jobs and economic opportunity • Enhance transportation With a shortfall of the magnitude faced by the state, no area of the budget could be held totally harmless. However, the budget reflects these key goals and minimizes the impact of reductions to the greatest extent possible. It is important to understand the nature of the state's forecast shortfall. The state is currently spending $1.9 billion more in the current budget than it is collecting. This "hole" was filled largely by depleting budget reserves and by using one-time monies to fill the gaps. Even with a slowdown in economic growth, state taxes and other revenues will grow $1.7 billion, 6.6 percent over the current two-year budget. This is not enough to fill the current gap in spending, much less provide for growing costs in all areas of the budget. Without action -the problem continues into the future. Spending would have exceeded revenues through the FY2006-07 planning horizon by over $2 billion dollars. How Decisions Were Made The Governor's budget acts to correct this revenue-spending imbalance. The budget reflects the belief that the budget can be balanced and .necessary changes can occur without increasing taxes. The fact that Minnesota continues to be ranked 6~' highest nationally in total state and local spending indicates that there is capacity to reduce spending and still provide high quality services to citizens. The FY 2004-05 budget will spend one billion dollars more than the current biennium -just less than interest groups and spending systems would advocate. Governor's 2004-05 Budget meeting' the Fiscal Challeri;;~e • Closing the $4.2 billion budget gap required a balanced solution and consideration of every available option. The Governor's budget decisions reflect a prudent mix of one-time resources and spending changes -and permanent °structural" changes. The Governor set early parameters on which decisions were based. State agencies were asked to prepare 20 percent reduction plans. Actual reductions were somewhat less, but vary with individual areas and agencies based on the nature of the functions and priorities. With a clear goal of protecting the classrooms, reductions to E-12 education were significantly less. Health and Human services spending was targeted because it is the fastest growing areas of the state budget and represents over one-quarter of the general fund budget. Tobacco funds and one-time K-12 payment changes were used to mitigate potentially higher reductions, and to provide transition funding to allow budget reductions to be implemented without major service impacts. Budget Reflects Sound Fiscal Management Minnesota currently is ranked AAA by national rating agencies, the highest possible rating. This has not always been the case. Minnesota was downgraded in the early 1980's after the repeated financial crises and special legislative sessions of that period. It took 15 years to regain the AAA rating. For most Minnesotans concerned about services and taxes, this may not seem relevant. It is -because it is a measure of the stability and predictability of state finances. The Governor insisted that the budget meet five important financial management goals: • Resolve the immediate fiscal crisis with afour-year view • Restore stability and predictability to state finances • Rebuild the budget reserve to mange risk of future forecasts • Permanently adjust spending to match revenue growth • Address the shortfall in a responsible way that will permit future investments in priority areas These goals require that state policy makers must pay attention to the state's °structural" balance when making budget decisions. Simply put, the Governor's budget restores revenue and spending balance by FY 2006 and FY 2007. It does not spend more than it collects in taxes and other revenues on a continuing basis. In considering the economic outlook, the Govemor requested that $500 million be placed into the budget reserve as a hedge against a downward revision in future forecasts. Additionally, his budget decisions result in a positive revenue-spending balance of over $700 million in the fiscal year 2007 planning estimates. • Governor's 2004-05 Budget ;~ E-~2 Edr~~a~io~t • The E-12 Education budget provides state aid to school districts for elementary and secondary schools, as well as funding for early childhood education, child care and community-based education and operating funds for the Department of Education, the State Residential Academies for the Blind and the Deaf, and the Perpich Center for Arts Education. E-12 Education is financed through a combination of state aid, property taxes, federal aid, and local non- tax receipts. Like most states, federal funds supply only a relatively small portion of the money coming to schools in Minnesota. -:: E-'12 Education Funding (~ in mill" ) Percent FY 2002-03 FY 2004-05 Chanae General Fund 10,725 12,582 17% Aid Payment Change (445) (183) n.a. Property Tax Recognition Shift (174) State Spending The Governor's general fund budget for E-12 education in FY 2004-05 totals $12.6 billion - a 17 percent increase over FY 2002-03. This increase reflects approximately $1 billion related to the property tax reform enacted in 2001 and implemented in FY 2003. The 2002 legislature also changed the payment schedule for school aids from 90/10 to 83/17, saving $445 million on a one-time basis. The Governor's recommendation also includes $357 million in one-time changes to the school aid State and Local Spending (Revenue) per Student State funding is only part of the picture for schools, however. Revenue per student including state and local funds--is often viewed as more relevant, as it removes the effect of shifts between state and local sources (such as property tax reform), eliminates distortion due to payment shifts (such as the 2003 and 2004 payment changes), and also controls for enrollment changes. payment schedule from 83/17.to 80/20 (saving $183 million) and the timing of the recognition of property tax levies (saving $174 million).. While these adjustments provide the state with. one-time savings, they do not affect the actual revenue that school districts receive, and. so are used to mitigate the actual impact of the budget shortfall on core education activities. Revenue Per Student, FY 2002-2007 Fiscal Year Total Operating Revenue per Student State + Local Levlss Annual Percent Change 2002 $7,144 2.6% -2003 $7,633 6.8% 2004-Goo's Rec. $7,799 2.2°~ 2005-Gov's Rec. $7,900 1.3% 2006-Gov's Rea $7,932 0.4°k 2007-Gov's Rec. $8,008 0.9% As the table indicates, the Governor's recommendation for FY 2004-05 increases the revenue per student • compared to FY 2003. On a statewide basis, revenue per student will grow from $7,633 in FY 2003 to $7,799 in FY 2004, a 2.2 percent increase. The impact on individual districts will vary, depending on factors such as passage of referenda, tax base changes and program utilization. Governor's 2004-05 Budget 7 __ a :~-~~ ~ducati~n __ Key Elements of the Budget Recommendations The Governor's FY 04-05 budget places a priority on protecting Minnesota's school classrooms from the impact of the state's massive budget shortfall while also avoiding increases in additional property taxes, unless they are truly at local option. This budget proposal fulfills both goals: revenues per student are maintained at the current year level, and the proposed budget for K-12 has no net impact on the statewide level of property taxes. In addition, the Governor's budget recommendations implement several measures to increase accountability and strengthen incentives for cost effective operations, and are a first step toward reform of the general education program. Because of the magnitude of the funding changes resulting from these recommendations, the Governor's budget includes a "hold-harmless" provision that will mitigate the short- term impact on school districts. During 2003, the Governor also plans to continue examining the school finance system, to better link achievement, accountability, and financing. A school finance reform plan will be presented to the Legislature in 2004. Key elements of the E-12 budget proposal include: • The Governor's budget caps teaming year pupil units at 1.0. The Learning Year program began as a pilot program in the late 1980s to allow secondary students to accelerate their learning and graduate early. Use of it has expanded to include elementary as well as secondary students, and to include remedial programs as well as accelerated learning. This program provides school. districts with little incentive to improve performance within the regular school day. • Under the current formula for Limited English Proficiency (LEP) funding, districts lack the incentive to ensure that LEP students are teaming the language skills they need to be successful. The longer a student remains in LEP status, the more aid the district receives. The Governor's budget limits LEP funding for each student to five years. • The Governor's plan seeks to improve the fairness of school financing by substantially increasing the fully equalized portion of referendum revenue and by requiring a local contribution for districts accessing equity revenue. • The Governor recommends eliminating the impact of the $415 roll-in on revenues linked to the general education formula allowance. Certain education formulas, such as compensatory, transportation, transportation sparsity and post secondary enrollment options (PSEO) are linked to the general education formula. When the formula allowance was increased by $415 in FY 2003 to reflect the roll-in of referendum revenue, the funding generated by these other formulas automatically increased because of the link to general education funding. The Governor' s budget eliminates the additional 9.9 percent increase caused by this relationship between the formulas. • The Governor proposes a new'"transition revenue" to ensure that districts will not be unduly harmed by the above changes to the general education program. This revenue provides a guarantee that in FY 2004, each district will receive either the amount they received per pupil in FY 2003, or the amount they would have received under current law for FY 2004. • The Governor eliminates statutory growth factors in Special Education, Special Education Excess Cost and Adult Basic Education. Removing these "automatic" increases ensures that decisions will be made each biennial budget, rather than giving some programs a virtual guarantee of increased funding. Governor's 2004-05 Budget U f 12 Educacti-.an • Recognizing the cost pressure that exists in special education, the Govemor's budget includes $20 million in one-time funds to reduce the cross subsidy of special education expenditures from general education revenue. • The Governor proposes to rename the Department of Children, Families and Learning as the Department of Education. As with most other administrative budgets, the Governor recommends a significant reduction to their operational funding, a $7.5 million decrease from FY 02-03. • The Governor's budget recommendation for the Academies for the Deaf and the Blind in Faribault totals $21 million, a reduction of $51,000 from FY 02-03 and a 5 percent reduction from FY 04-05 forecast levels. Funding for the Perpich Center for FY 2004-05 totals $13 million in the Govemor's budget, a reduction of 10 percent from FY 02-03 and 15 percent from FY 04-05 forecast levels. • Governor's 2004-05' Budget 9 ighe~r ~ducatior~.. C7 The higher education budget comprises the University of Minnesota, the Minnesota State Colleges and Universities (MnSCU), and the Higher Education Services Office (HESO). It also includes the Higher Education Facilities Authority and grants to the Mayo Foundation. Higher education is financed through a mix of state and federal funds, tuition, private and institutional funds, with the state paying the largest share. _~: ,; ` ~Highe~r. education Bill :Funding ~.: ~ _ . ~$ in millions) Percent FY 2002-03 FY 2004-05 Chanoe General Fund 2,806 2,552 (9)% The Governor's general fund budget for higher education totals $2.552 billion - a 9 percent decrease over the current biennium. Key Elements of the Budget Recommendations Recognizing the severity of the budget shortfall, the Governor's budget reduces state funding for the post- secondary institutions, while minimizing the impact on students through increased funding for financial aid and a limit on tuition increases. The Governor expects the institutions will rigorously review their operations and focus state funding on the support of core academic activities. The Govemor's budget includes the following specific recommendations: • The State Grant program increases by $60 million in the Governor's budget proposal. These funds have been reallocated from the University of Minnesota and MnSCU, in order to put more funds in the hands of students, enabling them to choose the best venue for furthering their education, and encouraging a vibrant and competitive higher education infrastructure. • The Govemor's budget recommends $1.094 billion from the General Fund for MnSCU, a 10°~ decrease from FY 02-03 funding levels. In FY 2001, MnSCU received 57 percent of their revenue from the state, so this represents a reduction of approximately 6% of their total revenue. • The Governor's budget recommends $1.085 billion from the General Fund for the University of Minnesota, a 15°~ decrease from FY 02-03. In FY 2001, the University received 32 percent of their revenue from the. state, so this represents a reduction of approximately 5% of their total revenue. • Tuition increases would be limited to a maximum of 15% for MnSCU, with a similar expectation for the University of Minnesota. The Govemor views this increase as an absolute ceiling, and challenges the systems to limit tuition adjustments to much lower levels in order to limit the impact of the budget reductions on students. In FY 2003, average tuition at MnSCU was $2,813, an increase of 11 °~ over the previous year. In FY 2003, average tuition and fees at the University of Minnesota were $6,280, an increase of 13°~ over the previous year. • The Govemor recommends eliminating the endowment for the Academic Health Center (AHC) and replacing that dedicated funding stream with the dedication of 6.5 cents of the existing cigarette tax. This would stabilize funding for the Academic Health Center at FY 2003 levels. Governor's 2004-05 Budget 10 I~i~~er Edu~cacti~n ~-- • The Governor proposes changing the governance structure of the Higher Education Services Office (HESO) in order to streamline executive branch policy making on higher education and ensure better accountability for the public. Currently, the 9-member HESO Council is responsible for hiring the HESO Director, but has few other statutory responsiblities. The Governor proposes eliminating the HESO Council and directly appointing the HESO Director. This would provide the Governor with a "point person" on higher education, and ensure that HESO could be held accountable for effective administration of the State Grant program. • In order to maintain and enhance a un'rfied dialogue on higher education, the Governor recommends strengthening the role of Higher Education Advisory Council (HEAC). Currently, HEAC is advisory to the HESO Council and includes representatives from the University of Minnesota, MnSCU, HESO, the Department of Education, the Private Colleges Council and the Association of Private Post-secondary schools. The Governor proposes expanding the HEAC membership by adding citizen members, and making HEAC advisory to the Governor. • • Governor's 2004-05 Budget 11 .' , Heacltli :& H~cmur~ .Seice;~ The Health and Human Services budget includes appropriations for the Department of Human Services, Department of Health, Veterans Homes, and related boards. This portion of the budget pays for hospital visits, nursing home care, welfare payments, job training, care of state institutions, regulatory activities, public health, and other services. Funding and delivery of these services is a shared responsibility of the state, the federal government, and Minnesota's 87 counties. f-leafi & l~uman'Services B~li~l~inding` `~ in .millions) ~ _.._ _ .: Percent FY 2002-03 FY 2004-05 Chanae General Fund 6,527 7,022 8°~ All Operating Funds 15,1.63 16,421 8% The Govemor's general fund budget for Health and Human Services totals $7.0 billion - a nearly 8 percent increase over the current biennium. The budget for all funds totals $16.4 billion, an increase of 8 percent. Net spending growth reflects the continued growth in the cost and number of people participating in state and federal human services programs. The Governor's budget recommendations address the cost pressures that have made this area the fastest growing part of the state budget. Key Elements of the Budget Recommendations The Governor's budget reduces health and human services spending from forecast levels but allows the state to preserve core health and economic support services for the most vulnerable people. This part of • the budget requires difficult trade-offs since protecting core services often requires eliminating optional services or eligibility. Even within more limited resources, the Governor aims to maintain a comprehensive set of services for children, elderly, and people with disabilities. The Governor maintains the state's safety net by prioritizing and re-directing existing resources. The budget includes expanded and improved mental health services for children and full funding for adoption assistance of special needs children. Even in tight budgets, the state can set its priorities to ensure that the safety net is maintained and even improved. The Governor's budget achieves significant new savings by creating a single state program for adults without children by consolidating the General Assistance Medical .Care (GAMC) program with the MinnesotaCare program and further modifying MinnesotaCare. Adults, both parents and adults without children, will be impacted by budget proposals the most, with reduced eligibility levels and increased premiums. The proposals also maintain coverage for those who opt to pay the full cost of MinnesotaCare's below-market premium prices but eliminate subsidized health insurance coverage for higher-income parents and pregnant women. Since health care programs funded exclusively with state dollars are less than one-quarter of all health spending, reductions also had to be made in the federally matched Medical Assistance (MA) program, the state's version of Medicaid. Changes to eligibility, benefits, utilization, and provider payments are some of the few tools available to state policy-makers. The Governor's budget changes include atwo-year moratorium on growth in the MA home and community-based services for people with developmental disabilities, elimination of health care coverage for undocumented people, and the elimination of a recently enacted expansion of autism services. • Governor's 2004.05 Budget 12 Hecxlth;~ u~cn Ser.~ice A ~.~.~.. • Trimming existing payments is also necessary in order to maintain the safety net and maintain access to health care services. Co-payments are proposed for certain services, such as non- emergency emergency room visits, eyeglasses, and non-generic drugs. While hospital and other service providers will receive reduced reimbursements for services, this budget strives to limit the shift to charity care and preserve state assistance for critical services. • The Governor reduces the impact of some funding reductions on local government by simplifying and consolidating state funding streams. Categorical grants from Human Services and Health have been substantially streamlined, providing local flexibility in service delivery with a focus on outcomes. Funding for children's services and public health are among those targeted for consolidation. • To support holistic management of state health care programs, the Health Care Access Fund is merged into the General Fund at the end of FY 2005. This will also allow policymakers to make health care spending decisions in the same framework as other state policy and funding decisions. • The Govemor recommends dedicating 2.5 cents of the existing cigarette tax for funding medical education and research. This ongoing funding is intended to replace monies provided by state tobacco endowments. The three endowments for medical-education, academic health center (see Higher Education), and tobacco use prevention total more than $1 billion and will be eliminated. Remaining funds will be deposited into the general fund in FY 2004. • • Governor's 2004-05 Budget 13 Tcr.~ Air.~s & ~'red,~t _.: Property tax aids and credits are state funds paid to local governments (public schools, cities, counties, towns and special districts) to reduce the local costs of service delivery, to defray the costs of state mandates, or to generally reduce local property taxes. These payments reduce local propertytax burdens by substituting state funds for revenues that would othervvise need to be raised through the local property tax. Some payments to individuals, like property tax refunds (PTR) for homeowners and renters, are also included in this category because they reduce property tax burdens. Most aids and credits are based on complex formulas written into law. To administer those formulas, the Department of Revenue collects local assessment and levy information, calculates levy limits, forecasts aid payments required, and makes most property tax aid payments to the local govemments. In the case of school-related aids, the Department of Education makes the payments to local districts. Property tax aids and credits are financed entirely from the state's general fund. `:Property flax A s';8~ Cre s Funding -' * ` ~ fn millions.. .. ......:. Percent FY 2002-03. FY 2004-05 Chance General Fund 3,389 2,633 -22% The Governor's general fund budget for this area totals $2.6 billion - a 22 percent decrease over the current biennium. The budget recommendation seeks to reform the amount and way that state aid is • distributed to local govemments. With falling state resources, reductions in aids and credits -nearly 11 percent of forecast spending -- will be required to bring the overall budget into balance. Key Elements of the Budget Recommendations The Governor's budget reduces state aid to a sustainable level and permanently reforms how money is distributed to local units of govemment. Too much of current funding is based on historic funding formulas that do not take into account local resources or local needs. The Governor expects that reductions in city and county aids will be followed by lower local spending, not higher property taxes. To ensure that state aid reductions are not passed along to property taxpayers, all reductions are capped so that no unit of government is disproportionately impacted. The governor also recommends continued levy limits so that changes are made to spending, not local taxes. Reductions in local budgets are sign'rficantly Tower than those experienced by state agencies and should not become an excuse.for higher property taxes. A summary of the local aids package is as follows: Reductions to local units of government are phased in to recognize local circumstances. First year reductions are one-third of the total since current budgets are already set. Second year reductions are higher, but can be more reasonably incorporated into local budgets. • Local governments that have held the line on property tax increases receive lower reductions in their state aids. Those counties and cities with levy plus aid increases of less than 2% per year will not be penalized for passing along the impact of state led property tax reductions. • Specific formula reform options will be released later to address LGA and county needs/capacity formula. These options will be released early enough for legislative action yet this session. Governor's 2004-05 Budget 14 - - ~ T~cx Aids &Credits • Reverse referendums are proposed so that local voters may not only hold down spending growth, but may even decrease spending. Activities funded by local levies must demonstrate continuing value to the public in order for their continued support. City aids and credits are reduced by $435 million for the biennium. This represents a 28.8°~ reduction in state aids, or a 6.2% reduction in total city revenues. ~ For the first year, changes are capped at 5% of total revenues for cities with more than 1,000 people. Smaller reductions of 3.5% are taken in aids to small cities and those that have already restrained spending growth. ~ For the second year, changes are capped at 9.5°~ for most cities, with smaller cities and those with low spending growth capped at 8%. County aids and credits are reduced by $189 million for the biennium. This represents a 20.1% reduction in state aid, or a 2.4% reduction in total county revenues. ~ For the first year, changes are capped at 3.2% of total revenues. Smaller reductions of 1.5°~ are taken in aids to those counties that have already restrained spending growth. ~ For the second year, reductions are capped at 6.0% for counties, with low spending growth counties capped at 2.5%. • Overall reductions to county aids are smaller than for cities due in part to their role in delivering state services. Counties are also impacted by state budget reductions in state health, human services, and corrections spending. As a result, while direct aid losses are lower, the overall impact between counties and cities is relatively balanced. • C~ Governor's 2004-05 Budget 15 Er~viro n~ent ~ Agrcultu~'e The Environment and Agriculture budget provides funding for the Pollution Control Agency (PCA), the Department of Natural Resources (DNR), the Department of Agriculture, the Office of Environmental Assistance, the Board of Soit and Water Resources and other small agencies. Their mission is to protect and enhance the quality of the environment, and human and animal health. The state invests in this area to balance the many interests of Minnesota citizens. Preserving our natural heritage for future generations while also providing quality trails, water access sites, and fishing, hunting, and camping resources for the recreation of a growing population is a major responsibility. At the same time, the state manages its forest and mineral resources for the economic benefits of citizens, communities, and industries, it also spends money to support the production of ethanol, promote agricultural products, and protect consumers through the regulation and inspection of products for human and animal consumption. Funding in this area is complex, with 40 percent of spending coming from the general fund, and 60 percent from a wide variety of user fees. Enirronment & Agriiculture'Bi11 funding` Percent FY 2002-03 FY 2004-05 Chanae General Fund 486 419 (14)% All Operating Funds 1,180 1,137 (4)°~6 The Govemor's general fund budget for Environment and Agriculture totals $419 million - a 14 percent decrease from the current biennium. The budget for all funds totals $1.1 billion, a decrease of 4%. Key Elements of the Budget Recommendations The Governor recommends a reduction in funding for the Ethanol Development program. The Department of Agriculture is also being asked to review the program and provide recommendations for changes that will help ensure the long-term financial viability of the state's investment in the ethanol industry. • The Governor is recommending an environmental. fund simplification that will enhance the Minnesota Pollution Control Agency's ability to direct resources toward environmental priorities. This proposal will restructure the Environmental Fund and create a new Remediation Fund. The proposal will also rename the solid waste tax to the "environmental tax" to reflect the broader purposes for which the revenue is spent. The proposed budget includes general fund reductions for the Department of Natural Resources. The budget includes broad based reductions across all programs, with the exception of Forestry, where the Department will make a smaller reduction to ensure its continued contribution to forest health, fire protection, and rural and state economies, and to maintain timber sales. Services will be reduced in State Parks, but all parks will remain open. The DNR will continueto work to refine the details for specific reductions • A limited number of fee increases for the Department of Agriculture, the Department of Natural Resources, and the Pollution Control Agency are included in the budget. These increases are necessary for the agencies to recover the cost of the programs and activities being supported by fees. • Governor's 2004-05 Budget 16 ._ r .~ _. , ~. ~„ - _ ~ EnUir~nrrrl!~e~t c~'z .rculture • The Governor is recommending that the administrative and operational functions of the Board of Animal Health and the Agriculture Utilization Research Institute be consolidated with the Department of Agriculture in order to reduce administrative costs while continuing the critical services of these agencies. • The budget for the Office of Environmental Assistance includes a 20 percent reduction in grants and loans including the SCORE grants to counties for waste reduction and recycling. The budget also includes a recommendation fora 25 percent reduction in the grant programs of the Board of Water and Soil Resources. • • Governor's 200405 Budget 17 . ~a .. 4~.. S ~ . Ecornomi~c Der~elopme~t The Economic Development budget includes funding for the departments of Commerce, Labor and Industry, Trade and Economic Development, the Minnesota Housing Finance Agency, and the Minnesota Historical Society as well as many small agencies and boards. This is a diverse set of agencies whose general goals include improving productivity, increasing wealth, and promoting equity. They provide services such as financing business expansions, promoting tourism, regulating financial services and utilities, promoting safe work environments, providing employment services and job-training, providing affordable housing programs, and preserving historically significant sites and documents. Economic development efforts are financed from the General Fund, federal, and other state funds. Other state funds include money generated from user fees and special taxes. Federal funds are largely spent on wastewater and drinking water systems, community development block grants, unemployment insurance, employment services, training services for people with disabilities, and housing subsidies. .. . , '.Economic Deve~o~menf;Bil# Fu~iding , Percent FY 2002-03 FY 2004-05 Chan e General Fund 433 326 (25)% All Operating Funds 1,808 1,532 (15)% The Governor's general fund budget for Economic Development totals $326 million - a 25 percent decrease from the current biennium. The budget for all funds totals $1.5 billion, a decrease of 15 percent. . A significant portion of the general fund decrease is related to the $24 million in one-time funding for affordable housing that was available in FY 2002-03. In addition, $8 million in one-time funding in FY 2002-03 was provided for workforce development related programs and special flood relief activities. Key Elements of the Budget Recommendations • The Governor's budget implements the merger of the Department of Trade and Economic Development and the Department of Economic Security. The combining of the two departments will provide opportunities to increase efficiencies and a more unified approach to workforce development. • The proposed budget reduces the General Fund appropriation for the Contaminated Site Cleanup program. The program is supported by other funding sources and will have $16.7 million available for projects in FY2004-05. • The Governor's budget recommends a reduction in some housing programs. However the Minnesota Housing Finance Agency will preserve its core services and provide housing assistance for the state's low-income population. • The elimination of the General Fund appropriation to the Minnesota Technology Incorporated (MTI) is also recommended by the Governor. MTI has non-state resources available to provide services to businesses. In addition, the Governor recommends the services of MTI that continue be closely coordinated with the activities of the Department of Trade and Economic Development in order to achieve efficiencies and avoid duplication. • The Governor recommends a 20 percent reduction in the General Fund base for the minority councils. The councils are being asked to work together to maintain their most important core functions while reducing adminsitrative costs by merging staffing and office facilities. Governor's 2004-05 Budget 18 F!~ _ Ec®r~om~i~ ~e~elopien _. • Two significant reforms are being recommended by the Governor in the budget for the Department of Labor and Industry. By implementing a new apprenticeship registration fee, the program costs for that activity will be transferred to those organizations that receive the benefit of the Apprenticeship program. The second reform includes fuming the agencies private sector OSHA enforcement program back to the federal government. The department will continue a smaller OSHA program directed towards public sector employers not covered by federal OSHA regulations. • The Governor's budget reduces funding for the Arts Board by 22 percent from FY 02-03 and eliminates state funding for the Humanities Commission. Even with these changes, funding per capita for arts and humanities is the second highest in the Midwest, second only to Michigan. • • Governor's 2004-05 Budget 19 ~'rains~ortatior e The Transportation budget supports the Minnesota Department of Transportation, Metropolitan Council Transit, transportation-related functions of the Department of Public Safety, and other small agencies. This funding supports the design, construction, maintenance, and management of state highways and bridges, financing of county state aid and municipal state aid roads, state aid for metropolitan and Greater Minnesota transit operations, and the development and maintenance of airports, the State Patrol, driver and vehicle services, traffic safety, and pipeline safety. The largest share of funding for this area of the budget is in the form of dedicated motor fuel and registration taxes deposited- in the Highway User Tax Distribution (HUTD) Fund. The General Fund supports only 3.7 percent of the funding for the activities in this area. ,T~'ans~ortation Bill.funding ,. .. : fi in millions) .. .. ~' "" Percent FY 2002-03 FY 2004-05 Chan e General Fund 451 161 (64)% All Operating Funds 5,059 4,489 (11)% The Governor's general fund budget for Transportation totals $161 million - a 64 percent decrease from the current biennium. The budget for all funds totals $4.5 billion, a decrease of 11 percent. The major portion of the general fund decrease is related to the one-time funding that was available in FY2002-03 for road construction projects. Key Elements of the Budget Recommendations The recommended reductions in the appropriation from the Trunk Highway Fund, for Mn/DOT operations, reflects an aggressive effort to realign spending priorities in the department. Emphasis is on sign'rficantly decreasing administration and overhead costs throughout the agency while preserving the department's ability to develop and deliver construction projects. The Govemor intends that these savings will provide the resources to allow for the development of a transportation investment package that will address the substantial needs of the state. • The reductions recommended for transit programs at the Department of Transportation and Metropolitan Council are aimed at minimizing the impact on service. While this reduction will result in some level of service reduction, the Governor's budget continues a significant investment in both rural and metro transit. • Included in the Governor's budget is a new appropriation of $2,240,000 in FY 2004 and $3,120,000 in FY2005 to support part of the operating costs for the Hiawatha Light Rail Transit. This recommendation assumes that local funding in the amount of $3,360,000 in FY 2004 and $4,860,000 will be provided by local units of government in the area benefiting from the Hiawatha Light Rail line. • The Governor is recommending a General Fund appropriation reduction of $2,095,000 each year for the operating costs of the transportation activities of the Department of Public Safety. Included in this is a reduction in capitol security activities. Security will be maintained at the State Capitol, the State Office Building and the Judicial Building. Governor's 2004-05 Budget 20 ' Criminal Justice The criminal justice system in Minnesota is composed of many federal, state and local agencies working together to investigate crime, apprehend suspects, adjudicate criminal cases, assist crime victims, and sanction offenders to reduce the future risk of crime. This section of the budget includes funding for the Department of Corrections, the criminal justice-related portions of the Department of Public Safety, the courts, the Board of Public Defense, and the Department of Human Rights. The financing for Criminal Justice agencies comes from the general fund, federal grants, and other state funds. ~Ciminal J m Fund ng . _ . Percent FY 2002-03 FY 2004-05 Chance General Fund 1,368 1,387 1% All Operating Funds. 1,654 1,561 -6% The Governor's general fund budget for these agencies totals $1.4 billion - a 1 percent increase from the current biennium. The budget for all funds totals $1.6 billion, a decrease of 6 percent. Net spending growth in this area is due to the state takeover of county-funded court functions, caseload increases, and a rising prison population. Key Elements of the Budget Recommendations The Govemor's criminal justice recommendations focus state spending on core activities in order to • maintain public safety while still achieving spending reductions. Areas that were spared from the deepest reductions include funding for state prisons, courts, and the Bureau for Crime Apprehension (BCA). Other activities, while important, were less directly tied to public safety and were reduced significantly or even eliminated. This budget attempts to maintain the core services that make Minnesota's judicial and correctional system very cost effective and the model for other states. Elements of the criminal justice budget include: • Increase capacity at existing prisons. At selected prisons, up to 50% of the cells will be double- bunked to help meet a growing demand for prison space. • Shift short-term- offenders -those with less than six months left on their sentence - to local jails for remainder of term. The current system needlessly moves around these inmates, increasing state transportation, intake, and other costs. This move will free up as many as 200 beds in the state system. • Reduce funding for courts and public defenders. As with executive and legislative branch activities, it is expected that judicial branch agencies will need to review costs, consider system changes, and develop other ways to manage within reduced resources. • Reduce grants for county corrections and crime victims services and battered women per diems. Minnesota is already heavily invested in some of these activities and reductions were made to preserve core functions. • Refinement of the CriMNet strategy towards a decentralized model will allow budget savings to be realized while maintaining the project's ability to achieve success through enhanced local and • federal partnerships. Governor's 2004-05 Budget 21 .. ,. Mate GwUQr3zn~.ent` The State Government budget includes the constitutional officers and the Legislature, the five major staff agencies (Administration, Employee Relations, Finance, Planning and Revenue) as well as Military Affairs, Veterans Affairs, and a number of other smaller agencies. Collectively, these offices and agencies provide the basic infrastructure for state policy development and business operations. This area of the budget is financed largely through the general fund, internal service fund charges to agencies for business operations, and other fees and charges. State Government i=unding (~ in mit~on5) .- Percent FY 2002-03 FY 2004-05 Chance General Fund 678 561 (17)% All Operating Funds 963 872 (9)°~6 The Governor's FY 04-05 general fund budget for these agencies totals $561 million - a 17 percent decrease from the current biennium. Key Elements of the Budget Recommendations • Funding for most agencies in this budget area, including the constitutional officers and the legislature, is reduced by 15 percent from the forecast funding level. When viewed on a biennial basis, the reduction percentages vary widely, with some agencies showing much larger reductions from FY 02-03 reflecting the removal of one-time appropriations from their budget in FY 04-05. • Reductions to Military Affairs and Veterans Affairs emphasize one-time and administrative decreases, reflecting the Governor's. commitment to avoiding cuts that might impair military readiness. • .The Governor asked the departments of Administration, Employee Relations and Finance to decrease the amount they bill to other agencies for computer and telecommunication services, building maintenance, state employee insurance administration and financial systems. These reductions help all state agencies by allowing them to better focus their resources on core functions rather than support activities. • The Governor's budget expands tax compliance activities in the Department of Revenue, even as other activities are pared back in that budget. The investment of $5.4 million into new compliance efforts is expected to yield $32.4 million in additional revenues. These activities will be similar to those funded in the past two years, which were confirmed to be effective by a recent Legislative Auditor report. • Funding is reduced overall by 24 percent for Public Broadcasting in the Governor's budget. Within that total, some entities are reduced by greater or lesser proportions, depending on their. reliance on state funds. Legislative Television and college-based public radio CAMPERS) are reduced by 15 percent, Public Television is reduced by 25 percent and Minnesota Public Radio is reduced by 35 percent. Governor's 2004-05 Budget 22 ~ - i Stage ~Governmen~ . T ~. • The Governor's budget reflects several proposals to reorganize and restructure activities in this area, including: ~ The Capitol Area Architectural and Planning Board (CAAPB) will be folded into the Department of Administration. Admin's Real Estate Management Division already works closely with the CAAPB in the Board's work overseeing planning and design for the Capitol Complex. ~ The office of the State Treasurer was abolished by a 1998 constitutional amendment. An executive order issued by Governor Ventura transferred its duties to the Department of Finance, effective January 6, 2003 and that transfer is reflected in the Govemor's recommendations. ~ Funding to several small veterans organizations-•the Military Order of the Purple Heart, Disabled American Veterans and the Veterans of Foreign Wars-is integrated into the Department of Veterans Affairs in order to allow these smaller organizations to take advantage of the Department's resources. ~ The Governor will announce a reorganization of the Office of Strategic and Long-Range Planning (Minnesota Planning) in the next couple weeks. This budget lays the foundation for that proposal by maintaining the core services of the agency while reducing administrative overhead. ~ In order to expedite agency reorganizations and downsizing, the Govemor's budget includes $500,000 for relocation costs that may be incurred as the. need for agency space is reduced or changes. • The Govemor's budget changes the financing structure for several agencies, including the Lawful Gambling Control Board, the Amateur Sports Commission, the Campaign Finance and Public • Disclosure Board and the Minnesota Racing Commission. Fees will be increased to cover the activities of the agencies. ~ For Gambling Control, general fund support for the agency's activities will cease, with fees to the lawful gambling industry restructured and deposited in a special account to cover the agency's operational costs. ~ The Amateur Sports Commission will be required to recover its operating costs by collecting fees from non-profit organizations with which the commission is affiliated as well as from other private sources. ~ For Campaign Finance, fees will be collected from candidates, political parties, political committees and lobbyists in order to recover the costs of the Campaign Finance Board's regulatory activities. ~ The Racing Commission will be authorized to collect fees sufficient to recover its operational costs, rather than receiving a General Fund appropriation. • In order to avoid future deficiency requests and to recognize the limited resources available to agencies, the Governor's budget includes $5 million each year for general contingencies and emergencies. • Governor's 2004-05 Budget 23 Aperid~x C The following summary tables provide additional detail on the current and recommended level of general fund revewes and spending for the FY 2004-05 budget. The tables are presented to provide commonly requested comparisons and fianancial data for the general fund. The tables present information displayed by major legislative spending bills. • Governor's FY 2003 Actions and Recommendations • FY 2004-05 Recommendations by Year • Annual Percent Change • Comparison: Governor's Budget -November 2002 Forecast • Comparison: Govemor's Budget -Increase over Current Biennium (FY 2002-03) • FY 2006-07 Planning Estimates Complete detailed budget information on individual agency recommendations can be found in companion • Govemor's detailed budget books that are prepared for each omnibus appropriation area. These documents and related background materials on the Govemor's budget can be viewed on the web at: www.finance.state.mn.us/budget/operating Governor's 200405 Budget 24 • i• i• Ax~~nendix Governor's FY 2003 Actions and Recommendations Compared to November 2002 Forecast FY 2002-03 Biennium ($ in thousands) Actual 8~ Estimated Resources Balance Forward From Prior Year Current Resources: Tax Revenues Non-Tax Revenues Dedicated Revenue Transfers In Prior Year Adjustments Budget Changes -Taxes Budget Changes -Non-Taxes Subtotal-Current Resources Total Resources Available Actual & Estimated Spending E-12 Education Property Tax Recog/Payment Change Property Tax Aids 8 Credits Higher Education Health & Human Services Environment & Agriculture Economic Development Transportation Criminal Justice State Government Debt Service & Borrowing Capital Projects Deficiencies/Other Estimated Cancellations Subtotal Expenditures & Transfers Dedicated Expenditures Total Expenditures & Transfers Balance Before Reserves Budget Reserve Budgetary Balance 27,001,424 98,164 26,681,240 98,164 27,099,588 26,779,404 (331,640) 185,747 23,900 0 (355,540) 185,747 11-02 post 2-03 Gov Rec FY 2002-03 FY 2002-03 1,574,200 1,574,200 Difference 0 23,330,813 23,330,813 0 1,318,313 1,318,313 0 102,968 102,968 0 375,393 375,393 0 66,261 66,261 0 0 50,000 50,000 0 147,203 147,203 25,193,748 25,390,951 197,203 26,767,948 26,965,151 197,203 10,724,994 (444,642) 3,389,225 2,806,480 6,527,444 486,037 432,564 450,828 1,367,726 677,963 581,047 2,146 14,612 (15,000) 10,688,869 (442,350 3;387,629 2,756,173 6,502,882 445,972 413,984 318,013 1,349,668 667,595 581,047 2,146 14,612 (5,000 (36,125) 2,292 (1,596) (50,307) (24,562) (40,065) (18,580) (132,815) (18,058) (10,368) 0 0 0 10,000 320,184) 0 (23,900) 541,287 Governor's 2004-05 Budget 25 - - ~ ~- Governor's Proposed Budget Recommendations by Year FY 2004-05 Biennium ($ in thousands) Biennial FY 2004 FY 2005 .Total Actual 8~ Estimated Resources Balance Forward From Prior Year 185,747 400,471 185,747 Current Resources: Tax Revenues 12,248,322 13,159,899 25,408,221 Non-Tax Revenues 566,074 587,884 1,153,958 Dedicated Revenue 90,128 93,357 183,485 Transfers In 45,906 44,855 90,761 Prior Year Adjustments 10,100 10,100 20,200 Budget Changes -Taxes 153,070 18,897 171,967 Budget Changes -Non-Taxes 1,138,284 271,199 1,409,483 Subtotal-Current Resources 14,251,884 14,186,191 28,438,075 Total Resources Available 14,437,631 14,586,662 28,623,822 Actual 8 Estimated Sgendinst E-12 Education Property Tax 12ecog/Payment Change Property Tax Aids & Credits 6,320,340 6,261,382 12,581,722 (345,962) (13,782) (359,744) 1,406,436 ~ 1,226,083 2,632,519 Higher Education 1,281,558 1,270,898. 2,552,456 Health & Human Services 3,551,093 3,470,464 7,021,557 Environment & Agriculture 210,097 208,522 418,619 Economic Development 163,407 162,146 325,553 Transportation 80,099 80,955 161,054 Criminal Justice 682,042 704,549 1,386,591 State Government 278,887 281,854 560,741 Debt Service & Borrowing 331,655 353,752 685,407 Estimated Cancellations 0 (5,000) (5,000) Subtotal Expenditures 8~ Transfers Dedicated Expenditures 13,959,652 14,001,823 27,961,475 77, 508 81,127 .158, 635 Total Expenditures 8~ Transfers 14,037,160 14,082,950 28,120,110 Balance Before Reserves 400,471 503,712 503,712 Budget Reserve Budgetary Balance 300,000 100,471 500,000 3,712 500,000 3,712 • • • Governor's 2004-05 Budget 26 . - i A ppendix • ~. ' s Proposed Budget Governor Annual Percent Change ($ in thousands) FY 2003 FY 2004 % Change FY 2005 % Change Actual 8< Estimated Resources Balance Forward From Prior Year 1,130,269 185,747 -83.6% 400,471 115.6% Current Resources: Tax Revenues 11,909,401 12,248,322 2.8% 13,159,899 7.4% Non-Tax Revenues 562,375 566,074 0.7% 587;884 3.9% Dedicated Revenue 68,369 90,128 31.8% 93,357 3.6% Transfers In 307,808 45,906 -85.1% 44,855 -2.3% Prior Year Adjustments 35,770 10,100 -71.8% 10,100 0.0% Budget Changes -Taxes 50,000 153,070 nm 18,897 nm Budget Changes -Non-Taxes 147,203 1,138,284 nm 271,199 nm Subtotal-Current Resources 13,080,926 14,251,884. 9.0% 14,186,191 -0.5% Total Resources Available 14,211,195 14,437,631 1.6%° 14,586,662 1.0% • Actual 8< Estimated Saending E-12 Education 6,143,145 6,320,340 2.9% 6,261,382 -0.9% Property Tax Recog/Payment Change (442,350) (345,962) -21.8% (13,782) -96.0% Property Tax Aids & Credits 1,607,882 1,406,436 -12.5% 1,226,083 -12.8% Higher Education 1,361,241 1,281,558 -5.9% 1,270,898 -0.8% Health & Human Services 3,456,941 3,551,093 2.7% 3,470,464 -2.3% Environment & Agriculture 207,342 210,097 1.3% 208,522 -0.7% Economic Development 192,703 163,407 -15.2% 162,146 -0.8% Transportation 108,487 80,099 -26.2% 80,955 1.1% Criminal Justice 710,253 682,042 -4.0% 704,549 3.3% State Government 320,941 278,887 -13.1% 281,854 1.1% Debt Service & Borrowing 295,494 331,655 12.2% 353,752 6.7% Estimated Cancellations (5,000) 0 -100.0% (5,000) nm Subtotal Expenditures 8~ Transfers 13,957,079 13,959,652 0.0% 14,001,823 0.3% Dedicated Expenditures 68,369 77,508 13.4% 81,127 4.7% Total Expenditures 8~ Transfers 14,025,448 14,037,160 0.1% 14,082,950 0.3% Balance Before Reserves 185,747 400,471 503,712 Budget Reserve 0 300,000 500,000 Budgetary Balance 185,747 100,471 3,712 Governor's 2004-05 Budget 27 ~4ppenc~i~ Governor's Proposed Budget Compared to November 2002 Forecast FY 2004-05 Biennium ($ in thousands) Actual ~ Estimated Resources Balance Forward From Prior Year Current Resources: Tax Revenues Non-Tax Revenues Dedicated Revenue Transfers In Prior Year Adjustments Budget Changes -Taxes Budget Changes -Non-Taxes Subtotal-Current Resources Total Resources Available Actual 8~ Estimated Spending E-12 Education Property Tax Recog/Payment Change Property Tax Aids & Credits Higher Education Health & Human Services Environment & Agriculture Economic Development Transportation Criminal Justice State Government Debt Service & Borrowing Estimated Cancellations Subtotal Expenditures 8 Transfers Dedicated Expenditures Total Expenditures & Transfers Balance Before Reserves Budget Reserve Dedicated Reserves Budgetary Balance 11-02 Fcst Gov Rec FY 2004-05 FY 2004-05 $ Difference % Chan (331,640) 185,747 517,387 25,408,221 25,408,221 0 1,153,958 1,153,958 0 183,485 183,485 0 90,761 90,761 0 20,200 20,200 0 0 171,967 171,967 0 1,409,483 1,409,483 • 26,856,625 28,438,075 1,581,450 26,524,985 28,623,822 2,098,837 • 12,876,472 12,581,722 (294,750) -2.3% (2,969) (359,744) (356,775) nm 3,270,757 2,632,519 (638,238) -19.5% 2,910,948 2,552,456 (358,492) -12.3% 7,840,289 7,021,557 (818,732) -10.4% 514,299 .418,619 (95,680) -18.6% 390,662 325,553 (65,109) -16.7% 184,932 161,054 (23,878) -12.9% 1,524,986 1,386,591 (138,395) -9.1% 606,346 560,741 (45,605) -7.5% 694,972 685,407 (9,565) -1.4% (20,000) (5,000) 15,000 -75.0% 30,791,694 27,961,475 (2,830,219) -9.2% 183,485 158,635 (24,850) -13.5% 30,975,179 28,120,110 (2,855,069) -9.2% . .4,450,194 503,712 4,953,906 79,200 500,000 420,800 30,619 0 (30,619) Governor's 2004-05 Budget 28 i• i• • Actual 8~ Estimated Resources Balance Forward From Prior Year Current Resources: Tax Revenues Non-Tax Revenues Dedicated Revenue Transfers In Prior Year Adjustments Budget Changes -Taxes Budget Changes -Non-Taxes Subtotal-Current Resources Total Resources Available Actual 8 Estimated Spending E-12 Education Property Tax Recog/Payment Change Property Tax Aids & Credits Higher Education Health & Human Services Environment & Agriculture Economic Development ' Transportation Criminal Justice State Government Debt Service & Borrowing Capital Projects Deficiencies/Other Estimated Cancellations Subtotal Expenditures 8~ Transfers Dedicated Expenditures Total Expenditures 8~ Transfers Balance Before Reserves Budget Reserve Budgetary Balance 11-02 post" Gov Rec FY 2002-03 FY 200405 $ Difference 1,574,200 185,747 (1,388,453) nm 23,330,813 25,408,221 2,077,408 8.9% 1,318,313 1,153,958 (164,355) -12.5% 102,968 183,485 80,517 78.2% 375,393 90,761 (284,632) -75.8% 66,261 20,200 (46,061) -69.5% 0 171,967 171,967 nm 0 1,409,483 1,409,483 nm 25,193,748 28,438,075 3,244,327 12.9% 26,787,948 28,623,822 1,855,874 6.9% 10,724,994 12,581,722 1,856,728 17.3% (444,642) (359,744) 84,898 -19.1% 3,389,225 2,632,519 (756,706) -22.3% 2,806,480 2,552,456 (254,024) -9.1% 6,527,444 7,021,557 494,113 7.6% 486,037 418,619 (67,418) -13.9% 432,564 325,553 (107,011) -24.7% 450,828 161,054 (289,774) -64.3% 1,367,726 1,386,591 18,865 1.4% 677,963 560,741 (117,222) -17.3% 581,047 685,407 104,360 18.0% 2,146 0 (2,146) -100.0% 14,612 0 (14,612) -100.0% (15,000) (5,000) 10,000 -66.7% 27,001,424 27,961,475 960,051 3.1i% 98,164 158,635 60,471 61.6% 27,099,588 28,120,110 1,020,522 3.8% (331,640) 503,712 835,352 23,900 500,000 476,100 "Does not reflect unallotment reductions and administrative actions taken to eliminate FY 2003 deficit. Governor's 2004-05 Budget 29 A Apendix Governor's Proposed Budget FY 2002 - FY 2007 Planning Horizon ($ in thousands) FY 2002-03 FY 2004-05 FY 2006-07 Actual 8~ Estimated Resources Balance Forward From Prior Year 1,574,200 185,747 503,712 Current Resources: Tax Revenues 23,330,813 25,408,221 28,486,392 Non-Tax Revenues 1,318,313 1,153,958 1,203,560 Dedicated Revenue 102,968 183,485 188,238 Transfers In 375,393 90,761 89,323 Prior Year Adjustments 66,261 20,200 20,200 Budget Changes -Taxes 50,000 171,967 967,284 Budget Changes -Non-Taxes 147,203 1,409,483 248,753 Subtotal-Current Resources 25,390,951 28,438,075 31,203,750 Total Resources Available 26,965,151 28,623,822 31,707,462 Actual 8~ Estimated Suendin E-12 Education 10,688,869 12,581,722 12,440,257 Property Tax Recog/Payment Change (442,350) (359,744) (40,916) Property Tax Aids & Credits 3,387,629 2,632,519 2,756,292 Higher Education 2,756,173 2,552,456 2,537,848 Health & Human Services 6,502,882 .7,021,557 8,581,030 Environment & Agriculture 445,972 418,619 412,435 Economic Development 413,984 325,553 324,420 Transportation 318,013 161, 054 163,165 Criminal Justice 1,349,668 1,386,591 1,481,043 State Government 667,595 560,741 560,197 Debt Service & Borrowing 581,047 685,407 742,654 Capital Projects 2,146 0 0 Deficiencies/Other 14,612 0 0 Estimated Cancellations (5,000) (5,000) (5,000) Subtotal Expenditures Si Transfers 26,681,240 27,961,475 29,953,425 Dedicated Expenditures 98,164 158,635 162,032 Total Expenditures 8~ Transfers 26,779,404 28,120,110 30,115,457 Balance Before Reserves 185,747 503,712 1,592,005 Budget Reserve 0 500,000 500,000 Budaetarv Balance 185,747 3,712 1,092,005 • • • Governor's 2004-05 Budget 30