HomeMy WebLinkAboutAgenda Packets - 2015/06/01
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, June 1, 2015
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. Presentation by Marie McCarthy, Metropolitan Council District 10 Representative
2. Mounds View Library Update from Branch Manager Carol Jackson
3. Discussion of Priorities for the 2016 Budget
4. Review Possible Code Amendment Relating to Honey Bees
5. Update on Progress Associated with City Council Goals for 2015
Next Work Session: Monday, July 6, 2015, at 7pm
Next City Council Meeting: Monday, June 8, 2015, at 7pm
Item No. 3.
Meeting Date: June 1, 2015
Type of Business: Work Session
City Administrator Review: ______
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Discussion of Priorities for the 2016 Budget
City staff has been busy working on the details of the 2016 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.
Key 2016 Budget Issues:
Local Government Aid is projected to increase in 2016 as long as state revenue projections
hold. In our case, the 2016 amount is estimated to be $666,795 compared with $655,531 in
2015. We won’t have revenue forecasts until late fall reflecting the current legislative changes.
The Council budgeted for 90% of anticipated LGA for 2015 so if there are cuts it won’t be as
painful.
Inflation is modest at present. (1.5% - 2%) The City’s charter cap would allow a levy increase of
(3.5% – 4%) based on the above inflation and excludes debt service levies and capital project
levies from inclusion in the cap calculation. A 1% levy increase would generate an additional
$43,503 in tax revenue. Property taxes account for 66.5% of General Fund revenues and
operating transfers in.
General Fund 2015 Budget by Type
Personnel 59.6%3,791,983
Contractual services 25.6%1,631,302
Capital outlays 1.7%108,275
Supplies 5.4%344,263
Transfers 5.3%340,122
Fire debt service 2.4%150,799
Contingency 0.0%-
Total 100%6,366,744
General Fund 2015 Budget by Function
Police 43.4%2,761,401
Public Works 13.2%841,669
Park and Recreation 8.2%519,027
Fire (SBM)6.5%414,819
Community Development 5.9%373,133
Administration 5.3%335,830
Finance 3.9%245,969
Central Services 3.7%235,844
Debt Service (Fire bonds)2.4%150,799
Misc. Contracual Service 1.3%79,878
Legislative 1.1%68,253
Contingency 0.0%-
Transfers to other funds 5.3%340,122
Total 100%6,366,744
Below is the effect of decertification of TIF district 2 (adds $149,833 in tax capacity) and levy
increases of 1, 2, and 3 percent on residential properties for the City levy only for 2016 based
on 2015 values.
Sample Estimated Home Tax Impact
City of Mounds View Only
Decertify
TIF 2
2015 2015 2016 2016 2016 2016
Market Taxable 2015 Tax No levy Tax 1% levy Tax 2% levy Tax 3% levy
Value Value Tax Increase Increase Increase Increase
54,050$ 32,450 146 144 146 148 149
108,100 80,700 361 358 362 367 371
162,150 139,550 625 619 627 634 642
216,200 198,500 889 880 892 903 914
270,250 257,350 1,153 1,142 1,156 1,170 1,185
324,300 316,300 1,417 1,403 1,421 1,439 1,456
378,350 375,250 1,681 1,665 1,686 1,707 1,728
432,400 432,400 1,938 1,919 1,943 1,967 1,991
486,450 486,450 2,180 2,159 2,186 2,213 2,241
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
2014 2% levy increase (Gen Fund)6,985,345 44.301 4,265,010
2015 2% levy increase (Gen Fund)7,642,870 42.886 4,350,310
2016 after TIF Dist 2 decertified 7,792,703 42.450 4,350,310
2016 after TIF Dist 2 decertified and 1% levy increase 7,792,703 43.008 4,393,813
2016 after TIF Dist 2 decertified and 2% levy increase 7,792,703 43.567 4,437,316
2016 after TIF Dist 2 decertified and 3% levy increase 7,792,703 44.125 4,480,819
The above is an estimate of the effect on property taxes after TIF District 2 is decertified.
Taxes will decline by 1.02%
The City has settled all three union contracts (LELS Patrol, LELS Sergeants, and Public Works)
for 2014, 2015, and 2016, with a cost of living wage increase of 2%. In addition, 15 employees
will receive step or longevity increases in 2016 of 2% to 10%. Health insurance premium
increases are not known, we will receive our rate notice in mid October. The impact to the
budget will depend upon the size of the unknown rate increase. The City’s health insurance
contribution increased $10 in 2015 to $990 per month compared with $20 in 2014. Past
premium increases were as follows: 4.6% for 2015, 5.1% for 2014, 20% for 2013, 21% for
2012, and 0% for 2011.
The employer’s share of PERA will remain at 7.50% for Coordinated (non-police officer) plan
members, PERA coordinated rates have increased from 5.53% in 2005 to 7.50% in 2015. The
Police plan will remain at 16.2% police PERA rates have increased from 9.3% in 2005 to 16.2%
in 2015. A new GASB financial reporting standard will require us to report our share of any
unfunded or surplus pension amount as a liability or asset in our financial statement. (currently
PERA is in an underfunded position so a liability will be reflected in our financial statement)
The payroll cost for 49.75 FT employees is $2,431 per hour, $19,448 per day, $97,240 per 40
hour week and $5,055,601 per year. Work comp will increase by $39,900 due to a significant
change in our experience mod from 1.33 to 1.63. Overall, pay and benefit costs will increase by
approximately $199,216 across all funds and $164,329 for the General Fund. There is an
additional unknown, the City has to submit for State Pay Equity compliance on January 1, 2016
and any changes to comply must be in place by December 31, 2015. Staff will be conducting a
preliminary calculation to determine if we are out of compliance and develop a plan to come
back into compliance if we are.
County dispatch fees will increase by a minimal amount, 2016 proposed fees will increase $219
or 0.2%, 2015 fees increased $8,903 or 8.82% to $109,819.
Fire department costs will increase by about 3-5% in 2016, our share will depend on the cost
sharing formula. Capital costs should be stable.
Information technology costs will increase by $3,000 to $68,000 for 2016 due to additional PD
costs. This continues to be an excellent value for the City.
Fuel prices were budgeted at $3.00 for 2015, staff would recommend using $2.75 for 2016.
Overall most revenues that are tied to economic activity will be flat to improving. Investment
income will remain flat to increasing in 2016 as a result of Federal Reserve activities and the
weak economic recovery. The franchise fee rate is at 4.00%, the revenue is split between the
General fund and the Street fund. The revenue generated from this fee will be dependent on
commodity prices and economic activity in 2016 but should be consistent with 2015.
2014 General Fund unassigned fund balance is $3,334,542 this represents 52.37% of 2015
budgeted expenditures and transfers. The General Fund also has Assigned fund balance for
Levy Reduction of $6,000,280, and $250,000 to balance the subsequent budget. It has been
the Council’s policy to draw down the levy reduction funds over time. One of the City’s goals is
to develop a sustainable budget. The General Fund deficit will be $325,000 to $350,000 this will
be partially offset by the drawdown of assigned (levy reduction) funds of $190,000 ($250,000 –
int. $60,000). This will leave a deficit of approximately $135,000 to $160,000.
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 2016 budget and are presented for
your consideration.
Respectfully Submitted,
Mark Beer
Item No: 5
Meeting Date: June 1, 2015
Type of Business: Work Session
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Update on Progress Associated with City Council Goals for
2015
Introduction:
On February 10, 2015, the City Council and department heads met for a joint strategic
planning and goal setting retreat at the Mounds View Community Center. Subsequent to
this retreat and goal setting session, the Council adopted a series of priorities for 2015
which would serve as guiding principles for City staff. In addition, the Council requested
periodic updates on the progress being made on the priorities. This report shall serve as
such an update.
Discussion:
The Council reviewed its list of goals and priorities at the February 23, 2015, City Council
meeting. Finding that the list captured the essence of the issues discussed at the retreat,
the Council approved Resolution 8378 (attached for your reference.) The following
updates shall provide the City Council with a better understanding of where we are with
each priority.
Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to
encourage redevelopment and land assembly; promote programs and opportunities to
improve neighborhoods
• Staff continues to look for suitable residential properties that would be good
candidates for targeted redevelopment utilizing grant dollars, however the funds
aren’t adequate to acquire a home, let alone acquire and demolish a home.
• Staff is exploring opportunities to better market housing programs available
through the Housing Resource Center, Greater Metropolitan Housing Corp,
Minnesota Housing Partnership, and our own loan program.
• The City participated in the 17th annual North Metro Home and Garden Show held
in Blaine this past February, attended by many Mounds View residents.
• Staff has been meeting with developers in an effort to create some interest in
possible redevelopment areas along the County Road 10 corridor, in addition to
the City-owned Crossroad Pointe site.
• There are a few commercial properties available on the corridor that would fit
within the City’s redevelopment vision; however the listing prices are not
consistent with the City’s limited dollars available to support such an acquisition.
2015 Priorities Update Report
June 1, 2015
Page 2
Actively recruit new businesses, encourage business development and work with existing
businesses for purposes of retention and expansion
• Through the first five months of the year, Staff has conducted 28 Business
Retention and Expansion (BR&E) visits
• Maintain list of available properties in Mounds View, respond to listing inquiries
• Schedule meetings with developers, provide Ramsey County officials with tour or
available sites
• Attend Twin Cities North Business Expo, Twin Cities Gateway meetings, Mounds
View Business Council Meetings
• Attend public finance conference, EDAM Conference, Greater MSP BR&E
meetings and Ramsey County BR&E meetings
Focus on corridor maintenance, aesthetics, landscaping and appearance; pursue
completion of corridor trailway segments and linkages to promote regional connectivity
• Staff will be scheduling a median clean-up utilizing Shoreview work crew
• Staff exploring costs / benefits or taking over median maintenance from Ramsey
County
• City Council approved engineering work and preparation of bid docs for trail
segments #6 and #11 for 2016 construction
• Participate in Ramsey County Comprehensive Pedestrian and Bicycle System
Plan meeting to talk about Mounds View's needs and opportunities. (The County
solicited cities to determine the overall need and level of funding needed to apply
to a grant that would help fund pedestrian projects.)
• Work with County regarding pedestrian accommodations on County Road H
project
Promote the redevelopment vision associated with Crossroad Pointe and pursue other
redevelopment opportunities
• Have met with a number of developers interested in the site
• Contacted more than 50 developers, providing site data and expectations
• Coordinating a tour of recent developments to get a better sense of what the City
would like to see on the site
• Create listings for the site on various development and redevelopment focused
online real estate databases
• Consult with financial advisor to improve marketability and visibility of the site,
gather detailed demographic to include with property listings
2015 Priorities Update Report
June 1, 2015
Page 3
Explore technology enhancements to expand access and availability to residents, businesses
and City departments; provide for greater security in parks and City buildings
• Inventory of camera needs at City Hall, the Community Center, Public Works and
parks buildings is in progress
• Police Department staff conducted an evaluation of City Hall for possible security
enhancements
• Card key access installed to all work area access doors, Employee ID badges will
be updated
• Working with Roseville concerning connectivity at park sites
• Considering possible exemption for utility provider to open the door to higher
Internet speeds (Gigabit service)
Implement renewable energy and energy efficiency improvements; pursue Green-Step
City designation
• Staff has signed the equipment lease and financing agreements to begin work on
a number of energy savings improvements such as solar energy panels, LED
lights, energy-efficient RTUs, etc.
• Staff has made arrangements with CERT staff to complete the GreenStep City
checklist and apply for certification
• RTUs #3 and #5 and Kitchen MAU starting next week 6/1/15
• RTUs #6 and #7 anticipated start date of 6/15/15
• Community Center lighting retrofit to start 6/4/15
• City hall lighting to start 6/4/15, trail lighting to start 7/1/15
• Community Center solar installation start date of 6/16/15
• City Hall solar array installation to start 7/17/15
• The entire project should be completed by the end of August
Plan for the design and reconstruction of the Public Works maintenance facility
• Due to a vacancy in the department, planning for the new facility has been
delayed and funding deferred to 2016. It is anticipated that the new public works
director will assess our needs in this regard and reinitiate the necessary planning
design work later this year.
• Incorporate funding for the project into the 2016 Budget, discussions relative
thereto in 3rd and 4th quarters, 2015
2015 Priorities Update Report
June 1, 2015
Page 4
Ensure Mounds View’s interests are protected and promoted relating to the TCAAP
redevelopment
• Staff has been attending all project management team meetings hosted by the
County and its consultants
• Staff has been in communications with County staff regarding access issues to
businesses near the County Road 10 and County Road 10 intersection,
succeeded in securing a new design feature for the County Road H reconstruction
that will maintain access to NB 35W.
• Attend meeting with the County and MnDOT regarding impacts to certain
properties within the Mounds View Manufactured Home Park due to construction
of a sound wall.
• Maintain communication with affected businesses as to project updates and
possible traffic impacts
Investigate the feasibility and funding opportunities associated with a “Splash Pad”
• Present possible site locations to Parks, Recreation and Forestry Commission for
discussion and consideration
• Include funding in the Special Projects Fund to cover construction costs
• Further work on the Splash Pad feasibility delayed due to vacancy in the public
works department
Promote positive partnerships and outreach efforts between the Mounds View Police
Department and the community it serves
• Police Chief attending on-going “Building Trust and Cooperation between Law
Enforcement & Community Roundtable” meetings held in North St Paul at
North Haven Church
• Planned involvement with Community Partners with Youth (CPY) later in
summer and fall for assistance with meal servings at Abiding Savior Church.
CPY provides after school programs to at-risk school age children
• Police representation at Teen Safety Camp at the Mounds View Community
Center on June 18th
• Planned partnership with Ramsey County Sheriff for Prescription Drug Abuse
Forum at local schools in the Fall of 2015
• Proposed “Shop with Cop” upcoming holiday season
• Continuous appearances through NNO, Festival in Park, cyberbullying
presentations to young student groups, K-9 appearances
2015 Priorities Update Report
June 1, 2015
Page 5
Recommendation:
Review the individual priorities and the action steps completed, underway and planned
in support of the Council’s priorities.
Respectfully submitted,
________________________
James Ericson
City Administrator
Attachment:
1. Resolution 8378
RESOLUTION NO. 8378
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING THE CITY COUNCIL’S IDENTIFIED
PRIORITIES FOR 2015
WHEREAS, the City Council and department heads held a planning and goal setting
retreat on February 10, 2015, at the Mounds View Community Center; and,
WHEREAS, at the retreat, the City Council reviewed and discussed the many issues
and challenges presently faced by the City; and,
WHEREAS, the City Council identified their most important priorities for 2015, which
are identified on the attached Exhibit A.
NOW, THEREFORE BE IT RESOLVED THAT the Mounds View City Council does
hereby approve its identified Priorities for 2015 as referenced in Exhibit A.
Adopted this 23rd day of February, 2015.
_______________________________
Joe Flaherty, Mayor
ATTEST:
_______________________________
James Ericson, City Administrator
(seal)
2015 City Council Priorities
On February 10, 2015, the Mounds View City Council and members of the management team held a
planning and goal-setting retreat at the Mounds View Community Center. The City of Mounds View
provides a variety of core and essential services to its residents, property owners and business owners.
Each of these service delivery areas is an acknowledged and supported priority and each supports the
City’s Mission, Vision and Values statements. Recognizing that important services such as Code
Enforcement, Street and Infrastructure Improvements, the Community Center, Parks, Public Safety,
Sewer and Water delivery are ongoing priorities which strengthen and enhance the City’s livability and
social fabric, the City Council has chosen to focus particular attention this year to the following identified
priorities:
• Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to
encourage redevelopment and land assembly; promote programs and opportunities to improve
neighborhoods
• Actively recruit new businesses, encourage business development and work with existing
businesses for purposes of retention and expansion
• Focus on corridor maintenance, aesthetics, landscaping and appearance; pursue completion of
corridor trailway segments and linkages to promote regional connectivity
• Promote the redevelopment vision associated with Crossroad Pointe and pursue other
redevelopment opportunities
• Explore technology enhancements to expand access and availability to residents, businesses
and City departments; provide for greater security in parks and City buildings
• Implement renewable energy and energy efficiency improvements; pursue Green-Step City
designation
• Plan for the design and reconstruction of the Public Works maintenance facility.
• Ensure Mounds View’s interests are protected and promoted relating to the TCAAP
redevelopment
• Investigate the feasibility and funding opportunities associated with a “Splash Pad”, and
• Promote positive partnerships and outreach efforts between the Mounds View Police
Department and the community it serves.
The City Council considers the County Road 10 corridor to be a key component in the City’s ability to
grow and prosper well into the future. A healthy and vibrant commercial corridor, easily accessible and
aesthetically pleasing, will be Mounds View’s foundation upon which our other amenities will be
strengthened and reinforced.
(Approved Feb 23, 2015, Res. 8378)
EXHIBIT A