HomeMy WebLinkAboutAgenda Packets - 2013/06/13CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, June 3, 2013
7:00 p.m.
ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller
PUBLIC COMMENT
Citizens may speak to issues not on tonight's agenda. Before speaking, please give your
full name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
1. Discussion about the County Road 10 Corridor Plan
2. Review Possible Allowance of Recycling Donation Bins
3. Review Next Steps Associated with Purchase of Property Located at 2400 Co. Rd H2
4. Discussion of Priorities for the 2014 Budget
Next Work Session: Monday, July 1, 2013, at 7pm
Next City Council Meeting: Monday, June 10, 2013, at 7pm
of Mounds View Staff
Item No: 1
Meeting Date: June 3, 2013
Type of Business: Work Session
Administrator Review:
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Discuss County Road 10 Corridor Plan
The City Council's 2013 Priority Statement includes the following eight action steps
regarding the revitalization of the County Road 10 corridor. To effectively complete a plan
of action, it is important to estimate implementation dates for each action step. City staff
has drafted several implementation dates as show in the below chart.
Action Ste `',"
Imp Iemeritation Item
-&,Date ;
Partner with Ramsey County concerning
ongoing
corridor maintenance and appearance
Consider targeted property acquisitions
EDA to close on purchase of 2400 County
on a case-by-case basis to eliminate
Road H2 by June 30, 2013
blight and to encourage redevelopment
and land assembly
EDA to reach purchase agreement on the
purchase of 2394 County Road 10 by July
31, 2013
Improve and enhance visual corridor
Install new City Hall electronic base and sign
aesthetics through sustainable
by August 2013
landscaping and pedestrian -friendly
streetscaping
Install new entrance monument signs Spring
2014
Mounds View Public Works to annually
request to subcontract with Shoreview Public
Works for trash pickup using the State's
Dept. of Corrections' Institution Community
Work Crew Program
Consider additional aesthetic improvements
in conjunction with the intersection
improvement projects located at Silver Lake
Rd/County Rd 10 (Summer 2013) and
Count Rd H/Count Rd 10 2016
Explore creation of a Corridor Overlay
Planning Commission to implement by end of
Zoning district to promote ideals of
2013
vertical, mixed use development,
minimized building setbacks, parking in
rear and more desirable design
guidelines
June 3, 2013 - City Council Work Session
Item 1 -County Road 10
Complete corridor trail and sidewalk
New trail on the south side of County Rd 10
system and plan for internal and
from County Rd H2 to Woodale to be
external linkages to promote and
completed in 2014
enhance walkability and connectivity
New trail on the north side of County Rd 10
from Red Oak Drive to Pleasant View to be
completed in 2015
Actively recruit new business
ongoing
development and work with existing
businesses for purposes of retention
and expansion
Pursue grants and leveraged funding
Apply for DEED redevelopment grant for
opportunities to foster desired
Premium Stop Redevelopment Area by
improvements
February 1, 2014
Partner with MnDOT and Ramsey
Obtain confirmation from Ramsey County by
County to effectuate the naming of the
July 2014 whether they will contribute
County Highway 10 corridor as
monetarily towards replacing their road signs
"Northtown Boulevard"
with new name
Staff Recommendation
Staff recommends that the City Council discuss and complete implementation dates for the
County Road 10 action steps created by the City Council in February 2013.
Respectfully submitted,
Heidi Steinmetz, Economic Development Specialist
}
of Mounds View Staff
Item No: 2
Meeting Date: June 3, 2013
Type of Business: WS
Administrator Review:
To: Honorable Mayor and City Council
From: Heidi Heller, Planning Associate
Item Title/Subject: Discussion about allowing donation bins in the City
Introduction:
At the May 13, 2013 City Council meeting, a representative from USAgain approached the
City Council to request that the Council reconsider allowing donation bins in the City. The
Council agreed to revisit the topic at the June 3, 2013 Worksession.
In 2007 and 2009 the City Council discussed the donation bins for clothing and small
household items that are typically located in parking lots of businesses. In 2007, USAgain
requested that the issue be discussed with the Council, and in 2009 the Epilepsy
Foundation spoke to the Council. Both times the City Council decided to not allow the bins
in the City due to aesthetics, problems with items left on the ground next to the bins, and
the bins sitting in parking lots are not what the Council wants to see along the City's main
corridor.
Discussion:
Staff's concern with these boxes is that they contribute to clutter, bear no association to the
host property and that they could become unsightly, aesthetically displeasing and a drop-
off point for non -clothing debris and other junk. In 2009, the Epilepsy Foundation asserted
that they have an impeccable record for maintenance and collection and that their boxes
would not be unsightly, nor have they had problems at their other bin sites. USAgain
admits that they had growing pains over the years in regards to keeping up with emptying
the bins, but that things have since improved.
Staff met with a USAgain representative in May 2013, and learned that the property owner
or business that allows a USAgain collection bin is compensated for allowing the bin
placement and also receives a share of the collections from those bins (for example, the
business may receive $0.05 for each pound collected from their bins).
If the City Council were inclined to allow donation bins as accessory uses, staff would
recommend that the Council consider using the following standards:
- Limit the locations of the bins only to schools and churches. The property must be
owned by the school or church. They could not be placed on a retail property that is
leasing a space to a church or school use.
Donation Bin Staff Report
June 3, 2013
Page 2
- The donation bin must not be located in the front of the property or out in the open.
Possibly limit the location to behind the front line of the host building and adjacent to
the building.
- The property owner of the donation bin location is responsible for the upkeep of the
donation bin.
- Possibly limit the number of donation bins per property.
- Temporary recycling collection drop offs (often seen in parking lots of schools or
churches as a fund raising event) could be exempted from any adopted restrictions.
Recommendation:
After discussing and hearing from the USAgain representative, provide direction as to
whether or not staff should move forward with a code amendment to allow permanent
donation bins in the City of Mounds View.
Respectfully submitted,
Heidi Heller
Planning Associate
Item No: 3
013
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Meeting Date: June 3, cion
VIVJJJ �/1L�V T e of Business: Work Session
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Next Steps Associated with the Acquisition of 2400 County
Road H2
Introduction:
The Mounds View Economic Development Authority (EDA) authorized the acquisition of
the property located at 2400 County Road H2 at its meeting on May 13, 2013.
Subsequently, title work was initiated by Kennedy & Graven and is proceeding.
Discussion:
Staff has already begun the process to seek demolition quotes, which would likely
exceed $30,000 plus any hazardous material assessment and removals. A quote
alternate would be to remove the building AND the parking lot and restore the site to a
level, green condition.
We anticipate the closing to occur before the end of June so as to file the necessary tax
exempt paperwork. Should the closing or filing occur subsequent to June 30t", the City
would have to pay the property taxes, which in 2013 amounted to about $24,000.
A preliminary due -diligence walk-through of the building is scheduled to occur prior to
the Council meeting.
As for the future re -use of the site, the ultimate redevelopment scenario would include
the Premium Stop and Taiko sites and involve closing Greenfield Avenue. While there
are site plans illustrating potential redevelopment scenarios from previous planning
efforts, it may be premature to revisit those until we have a better understanding of the
status of the Taiko parcel.
Recommendation:
Discuss potential activities that would occur after closing on the property occurs and
provide direction to staff.
Respectfully submitted,
J&XVJ-A
James Ericson
City Administrator
SR
Moll VIEW
City of Mounds View Staff Re
rt
Item No. 4.
Meeting Date: June 3, 2013
Type of Business: Work Sessio
City Administrator Review:
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Discussion of Priorities for the 2014 Budget
City staff has been busy working on the details of the 2014 budget.
This item is placed on the agenda to give the City Council and residents the opportunity to
provide input to staff early in the process. Department Heads can then use this guidance as
they work on the details of their proposed budgets.
General Fund 2013 Budget by Type
Personnel
63.5%
3,568,120
Contractual services
22.9%
1,286,437
Capital outlays
0.9%
50,036
Supplies
5.6%
317,160
Transfers
4.6%
260,000
Fire debt service
2.5%
137,740
Contingency
0.0%
-
Total 100% 5,619,493
Key 2014 Budget Issues:
General Fund 2013 Budget by Function
Police
Public Works
Park and Recreation
Community Development
Fire
Administration
Finance
Central Services
Legislative
Debt Service
Contingency
Misc. Contracual Service
Transfers to other funds
Total
44.1% 2,479,537
13.1% 734,931
9.0% 503,195
6.3% 351,972
5.5% 310,846
4.6% 256,647
3.8% 216,045
4.2% 233,816
1.0% 58,366
2.5% 137,740
0.0% -
1.4% 76,398
4.6% 260,000
100% 5,619,493
The Legislature has adjourned for 2013 and there are a number of items that will impact the
City. Cities and Counties will no longer have to pay sales tax beginning January 1, 2014. This
will save the City approximately $70,000 to $75,000. ($30,000 General Fund) Department
heads will be able to defer some 2013 budgeted items to save the sales tax but this will require
that the budget amount be carried over to 2014. Local Government Aid is projected to increase
in 2014 as long as revenue projections hold. In our case, the 2014 amount is estimated to be
$597,414. We won't have revenue forecasts until late fall reflecting the current legislative
changes. It has been the Council's position to not budget for LGA so if there are further cuts it
won't be as painful. The Council will have some flexibility for one-time purchases or
replenishing the Special Projects and Vehicle and Equipment funds.
Inflation is moderate at present. (2 - 2 /2%) The state imposed a 3% levy cap for 2014. The
City's charter cap is less restrictive for 2014 so the City would be subject to the state cap. Both
caps exclude debt service levies and the City cap also excludes capital project levies from
inclusion in the cap calculation. A 1% levy increase would generate an additional $41,814 in tax
revenue. Below is the effect of decertification of TIF district 1 and levy increases of 1, 2, and 3
percent on residential properties for the City levy only.
Sample Estimated Home Tax Impact
City of Mounds View Only
Decertify
TIF 1
2013 2013
2013
2013
2013
2013
Market Taxable 2013
Tax No levy
Tax 1% levy
Tax 2% levy
Tax 3% levy
Value Value Tax
Increase
Increase
Increase
Increase
$ 50,000 30,000 151
126
128
129
131
100,000 71,800 362
301
305
310
314
150,000 126,300 637
530
537
544
552
200,000 180,800 912
759
769
779
790
250,000 235,300 1,186
987
1,001
1,014
1,028
300,000 289,800 1,461
1,216
1,233
1,249
1,266
350,000 344,300 1,736
1,444
1,464
1,484
1,504
400,000 398,800 2,011
1,673
1,696
1,719
1,742
450,000 450,000 2,269
1,888
1,914
1,940
1,966
Tax
capacity for
Local
local rate
tax rate
Tax Levy
2005
$ 6,679,189
46.966
3,838,994
2006
7,533,462
39.939
3,838,994
2007
8,364,245
37.328
3,838,994
2008
8,574,618
34.962
3,838,994
2009
8,475,755
32.351
3,799,393
2010 7.9% levy increase (Streets)
7,580,259
40.968
4,099,393
2011 2% levy increase (Gen Fund)
7,039,380
41.172
4,181,381
2012 (Mkt. Value Homestead Credit ended)
6,421,849
48.893
4,181,381
2013
6,026,790
50.422
4,181,381
2013 after TIF Dist1 decertified
7,243,491
41.953
4,181,381
2013 after TIF Dist 1 decertified and 1% levy increase
7,243,491
42.530
4,223,195
2013 after TIF Dist 1 decertified and 2% levy increase
7,243,491
43.107
4,265,009
2013 after TIF Dist 1 decertified and 3% levy increase
7,243,491
43.684
4,306,823
The above Is an estimate of the effect on property taxes after TIF District 1 is decertified
Taxes will decline by 16.56%
The City will begin to negotiate all three union contracts (LELS Patrol, LELS Sergeants, Public
Works) for 2014 and 2015, a probable range for a cost of living wage increase is 1 % to 2%. 10
employees will receive step or longevity increases in 2014 of 2% to 10%. The 2013 and 2012
budgets provided 1'/2% wage increases and the 2011 and 2010 budgets provided for no cost of
living wage increase. Health insurance cost increases are not known, we will receive our rate
notice in mid August. The impact to the budget will depend upon union negotiations and the
size of the unknown rate increase. The City's health insurance contribution increased $42.67 in
2013 to $960 per month. The actual premium rate increase was 20% for 2013, 21% for 2012,
and 0% for 2011.
The employer's share of PERA will remain at 7.25% for Coordinated (non -police officer) plan
members, PERA coordinated rates have increased from 5.53% in 2005 to 7.25% in 2013. The
Police plan will increase from 14.4% to 16.2% over two years starting in 2014, police PERA
rates have increased from 9.3% in 2005 to 15.3% in 2014 and 16.2% by 2015. The Police
PERA increase will add $13,280 in 2014 and $13,545 in 2015.
The payroll cost for 48 FT and 1 PT employee is $2,247 per hour, $17,977 per day, $89,886 per
40 hour week and $4,674,074 per year. This amount will change depending on cost of living
adjustments, insurance costs, work comp, PERA adjustments and any market adjustments.
County dispatch fees will increase, 2014 proposed fees increased $6,466 or 6.85% to $100,916.
Fire department costs will increase by about 4% in 2014, our share will depend on the cost
sharing formula but should be close to 4% we will also see an increase in capital costs by
$11,000 - $13,000.
Information technology costs will not increase for 2014.
Fuel prices were budgeted at $4.00 for 2013, staff would recommend using $4.00 for 2014.
Overall most revenues that are tied to economic activity will be flat to improving. Investment
income will remain flat in 2014 as a result of Federal Reserve activities and the weak economic
recovery. The franchise fee rate is at 4.00°/x; the revenue generated from this fee will be
dependent on commodity prices and economic activity in 2014.
2012 General Fund unassigned fund balance is $3,176,966 this represents 56.53% of 2013
budgeted expenditures and transfers. The General Fund also has Assigned fund balance for
Levy Reduction of $6,103,255, and $375,914 to balance the subsequent budget. It has been
the Council's policy to draw down these funds over time. One of the City's goals is to develop a
sustainable budget. The General Fund deficit will be over $400,000, this will be partially offset
by the drawdown of assigned (levy reduction) funds of $155,000. This will leave a deficit of
$245,000 or more.
Conclusion
Staff is looking for direction from the Council on priorities for the budget and property tax levy.
The above items are some of the issues that will drive the 2014 budget and are presented for
your consideration.
Respectfully Submitted,
Mark Beer