HomeMy WebLinkAboutAgenda Packets - 2014/11/03
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, November 3, 2014
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. Review Selected Budgets
2. Discuss Municipal Code Chapters 906 and 907
3. Review Proposed TIF-Funded 2015 Capital Improvement Projects
Truth in Taxation Meeting: Monday, December 1, 2014, at 6pm
Next Work Session: Monday, December 1, 2014, at 7pm
Next City Council Meeting: Monday, November 10, 2014, at 7pm
Item No: 1
Meeting Date: November 3, 2014
Type of Business: Work Session
Administrator Review: _____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Review Selected Budgets for 2015
Attached are the budgets for the Economic Development Authority (EDA) fund and the Special
Projects Fund for your additional review and consideration. The Council conducted an initial
review of the above funds at the October work session.
EDA Fund
With all but one TIF district ending after 2015, the primary funding source for future economic
development activities will be limited to 5% (approx. $65,000) of the increment revenue in TIF
District 5 (Medtronic). The Council may direct additional revenue from other sources to provide
additional support or the Council could consider an EDA levy in the future or EDA activities
could be reduced. The Council has included a $10,000 transfer from the General Fund to cover
proposed economic development activities in 2015. The 5% increment from TIF District 5 and
the $10,000 General Fund transfer will be insufficient to fund EDA activities at the current level
after 2015. (will need an additional $25,000 in 2016) Staff is not looking for direction at this time
but wanted the City Council to have some advanced notice that the level of activities will need to
decline or revenues will need to increase after 2015.
Special Projects Fund
The City maintains four capital project funds each with a different funding source. The Special
Projects fund was created to support one-time or infrequent projects that were unable to be
funded by other City funds. Transfers from the General Fund provided the initial funding and
investment earnings provided subsequent funding. There have been no subsequent transfers
from the General Fund since 2003. The balance has declined and low investment rates have
not provided sufficient income to maintain the fund balance. With the level of proposed projects
for 2015, the fund will be depleted. The City has experienced increased development activity in
2014 and Local Government Aid is at its highest level in the last five years so the General Fund
may generate a current year surplus. This surplus could be transferred to the Special Projects
fund to provide enough funds for the proposed projects. In the future the City Council my want
to consider budgeting for a transfer to special projects to provide funding for one-time and
longer term projects similar to the Vehicle and Equipment fund.
Respectfully Submitted,
Mark Beer, Finance Director
Item No: 3
Meeting Date: November 3, 2014
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: Review Proposed TIF-Funded Capital Improvement Projects
Introduction:
The five-year Capital Improvement Program (CIP) includes several projects for 2014 and
2015 which receive funding either wholly or partially through tax increment finance (TIF)
dollars. 2015 will be the last year during which increment is collected from the older
districts, with TIF District 1 having already expired in 2013 and TIF District 3 to expire at the
end of 2014. If any unobligated TIF funds are not spent on their identified capital projects,
the remaining monies will be absorbed into the street program—unless the Council acts to
repurpose the dollars ahead of time.
Discussion:
The individual projects outlined in the 2014 and 2015 portion of the CIP are as follows:
Line # Year Project TIF Funds
002 2014 Street & Utility Imps - Closeout F + Const. G + Design H 500,000
003 2014 Mustang Drive Pavement Rehab and Stormwater Imp. 500,000
021 2014 CSAH 10 Gateway Features and Median enhancements 300,000
037 2015 CSAH 10 Trail - Segment 11 (CR H2 - Woodale) 250,000
038 2015 CSAH 10 Trail - Segment 6 (Red Oak Dr. - PV Dr) 450,000
039 2015 CSAH 10 Median Enhancements and Gateway Features 360,000
Total proposed expenditures: $2,360,000
According to Finance Director Beer, between the existing TIF balance and the increment to
be collected in 2015, there is approximately $1,100,000 remaining of unobligated TIF funds
that can be spent before the end of 2015. Based on this anticipated amount, the proposed
budget for 2015 includes the following capital expenditures:
2015 Area H Street Project $250,000
Mustang Drive Mill & Overlay $450,000
Trail Segments 6 & 11 $350,000
TOTAL: $1,050,000
Because of the deficiency of TIF funds, no expenditures are noted for corridor
enhancements relating to the median or gateway/entryway signage.
Review Proposed TIF Projects
November 3, 2014
Page 2
Recommendation:
Review the above projects and provide guidance and direction to staff as to the identified
projects in the five year Capital Improvement Program (CIP) and those selected for
inclusion within the 2015 Budget.
Respectfully submitted,
________________________
James Ericson
City Administrator