HomeMy WebLinkAboutAgenda Packets - 2011/06/06
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, June 6, 2011
7:00 p.m.
ROLL CALL: Flaherty, Stigney, Hull, Mueller, Gunn
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. Attracting Tenants to Vacant Commercial Buildings in Mounds View
a. Guest – Deb Carlson, Cushman & Wakefield (Former Snyders)
b. Guest – Mark Robinson, Paster Enterprises (Mounds View Square)
2. Review Proposal to Lease Former Chamber Space at the Mounds View
Community Center
3. Discuss Potential Impacts regarding the Announced Vikings Stadium in Arden Hills
on the TCAAP Property
4. Council Discussion of Priorities for the 2012 Budget
Next Work Session: TUESDAY, July 5, 2011, at 7pm
Next City Council Meeting: Monday, June 13, 2011, at 7pm
Item No: 1
Meeting Date: June 6, 2011
Type of Business: Work Session
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Attracting Tenants to Vacant Commercial Buildings in
Mounds View
Background
City staff maintains a list of available business sites. The list is attached to this staff report for the
City Council’s review. Properties that are officially listed for sale or lease are found on the
Minnesota Commercial Association of Realtors (MNCAR) Website. MNCAR provides a searchable
database (available to the public) of commercial real estate property for sale or lease in Minnesota.
MNCAR’s list of available Mounds View properties is also attached for the City Council’s review.
There are currently at least twenty vacant commercial buildings (or vacant space located within
buildings) in Mounds View. Although several of these buildings are located prominently along
County Road 10, it is important that we recognize all vacant commercial buildings in Mounds View.
Discussion
City staff invited several Mounds View property managers and commercial real estate
brokers/realtors to attend the June 6th Work Session. Those who have confirmed their attendance
are Deb Carlson of Cushman and Wakefield and Mark Robinson of Paster Enterprises. The
purpose of staff’s invitation was for the City Council to discuss with Mounds View’s commercial
realtors the current status of the commercial real estate industry and how it relates to attracting
tenants to Mounds View’s vacant commercial buildings.
It is important that City staff’s role in attracting tenants to vacant commercial buildings in Mounds
View is one of support. It is the commercial realtor’s role to attract the tenants and City staff’s role
to support the realtors by providing them with information about the allowable uses of the
properties, about Mounds View’s demographics, etc.
Recommendation
Staff recommends that the City Council discuss with the commercial real estate brokers the status
of the commercial real estate industry and how it relates to attracting tenants to Mounds View’s
vacant commercial buildings.
Respectfully submitted,
___________________________
Heidi Steinmetz, Economic Development Specialist
Attachments
City Staff’s List of Available Business Sites in Mounds View
MNCAR Property Listings in Mounds View
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Available Business Sites
Mounds View is a community with an array of business opportunities.
From lease space to a redevelopment project, we are here to assist
you in finding the perfect site for your business or project. Below is a
list of available business space in Mounds View. Click on
each property name to view details on each property.
Sale or Lease Property Name Available Space Location Contact
Sale MultiTech Parcel 6.54 Acres no address Del Palachek
Sale Premium Stop Parcel 1.28 Acres 2390 County Rd 10 City Hall
Sale MoundsView Motor Co. 3.26 Acres 2375 County Rd 10 Rob Davidson
Sale Former Let's Get Graphic 14,560 SF 2442 County Rd 10 Bob Bayer
Sale PAK 10,560 SF 2832 County Rd 10 Judy Wright
Sale Skyline Motel 2.85 Acres 4889 Old Hwy 8 Raman Bhakta
Sale Thrifty Car Rental .58 Acre 2975 County Rd 10 Jim Stimmler
Sale Former Synders 6,050 SF 2525 Long Lake Rd Deb Carlson
Sale Bridges Office Building 11,000 SF 2408 County Rd 10 Derrick Jensen
Sale Everest Properties 2.98 & .85 Acres 2310 County Rd 10 Tim Nelson
Sale Paron Properties 1.87 Acres 2300 County Rd 10 Jim Paron
Lease Dell-Comm 4,100 SF 4860 Mustang Circle Jim Freichels
Lease Community Center 1,000 SF 5394 Edgewood Dr City Hall
Lease WIN Insurance Agency 3 small offices 2704 County Rd 10 George Winiecki
Lease Subway Building 4,000 SF 2436 County Rd 10 Bob Bayer
Lease Multi-Tenant Office 2,000 SF 2402 County Rd I Ray Vandeveer
Lease Silver View Plaza 23,799 County Rd 10 Jim Stimmler
Lease Building D 55,742 SF 2222 Woodale Dr John Boich
Lease Building G 81,480 SF 5267 Program Ave John Boich
Lease Building H 78,016 SF 2290 Woodale Dr John Boich
Lease Building I 144,783 SF 2270 Woodale Dr John Boich
Lease Building J 42,551 SF 2250 Woodale Dr John Boich
Lease Bridges Technology Park 8,000 SF 8200 Coral Sea St Larry Lindberg
Slideshow
Click here to view a
slideshow of buildings
for sale in Mounds
View.
Contact
Heidi Steinmetz
Economic
Development Specialist
763-717-4029
Redevelopment
Redevelopment
Opportunities
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Page 1 of 2Available Business Sites - City of Mounds View
6/1/2011http://www.ci.mounds-view.mn.us/index.asp?Type=B_BASIC&SEC={FF7ABAA3-8FFD-43B5-8E44-1D...
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Page 2 of 2Available Business Sites - City of Mounds View
6/1/2011http://www.ci.mounds-view.mn.us/index.asp?Type=B_BASIC&SEC={FF7ABAA3-8FFD-43B5-8E44-1D...
2220-2230 Quincy St
Mounds View, MN 55112-1438
Mounds View Business Park-Bldg F
Building Size: 62,685 SF Available SF: 42,525 SF
Specific Use: Warehouse -- Distribution Max Contig: 42,525 SF
Status: Existing Min Div: 14,504 SF
Year Built: 1988 Lease Rate: $4.50 - $8.50 NNN
Office SF: Sublease: No
Dock Doors: 6
Drive-In Doors: 2
Listing Agent:
CB Richard Ellis
John Ryden
(952) 924-4641
Clear Height: 20.00 FTabc
Parking Ratio: 2.34 /1000
Rail: No
Sprinkler: Yes
Listing Notes: Could combine both suites for a total of 42,525 sf. 33,500+sf whse and +/-9,000 sf office (some could be demolished for more whse) and 10
dock doors and one drive-in. Great location just blocks from County Hwy 10 with direct access to I-35W and U.S. Hwy 10.
2222 Woodale Dr
Mounds View, MN 55112
Mounds View Business Park - Bldg D
Building Size: 55,736 SF Available SF: 10,116 SF
Specific Use: Flex/R&D Max Contig: 10,116 SF
Status: Existing Min Div: 10,116 SF
Year Built: 1989 Lease Rate: $4.50 - $8.50 NNN
Office SF: Sublease: No
Dock Doors: 9
Drive-In Doors: 0
Listing Agent:
CB Richard Ellis
John Ryden
(952) 924-4641
Clear Height: 14.00 FTabc
Parking Ratio: 3.49 /1000
Rail: No
Sprinkler: Yes
Listing Notes: High-image office/tech building located in a master planned business park setting. Offers visibility from County Hwy 10 with direct access to I-
35W and U.S. Highway 10. Location offers restaurants and retail services closeby. Located on a metro bus line.
2240 Woodale Dr
Mounds View, MN 55112
Mounds View Business Park Bldg J
Building Size: 42,791 SF Available SF: 42,791 SF
Specific Use: Bulk Warehouse Max Contig: 42,791 SF
Status: Existing Min Div: 7,929 SF
Year Built: 1992 Lease Rate: $4.50 - $8.50 NNN
Office SF: Sublease: No
Dock Doors: 7
Drive-In Doors: 3
Listing Agent:
CB Richard Ellis
John Ryden
(952) 924-4641
Clear Height: 22.00 FTabc
Parking Ratio: 1.72 /1000
Rail: No
Sprinkler: Yes
Listing Notes: This 42,791 sf space would be perfect for single tenant! Move-in ready! Nice office area along with warehouse space with painted walls, trench
drain and flammable waste trap. Or could divide for two or three tenants with suites from 7,929 sf up to 22,436 sf. Great location with easy access to I-35 and
visible from Co. Hwy 10.
Listings Summary Report
Page 1 of 5
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2298 Woodale Dr
Mounds View, MN 55112
Mounds View Business Park Bldg H
Building Size: 78,400 SF Available SF: 78,400 SF
Specific Use: Warehouse -- Distribution Max Contig: 78,400 SF
Status: Existing Min Div: 19,600 SF
Year Built: 1992 Lease Rate: $4.50 - $8.50 NNN
Office SF: Sublease: No
Dock Doors: 8
Drive-In Doors: 0
Listing Agent:
CB Richard Ellis
John Ryden
(952) 924-4641
Clear Height: 22.00 FTabc
Parking Ratio: 1.74 /1000
Rail: No
Sprinkler: Yes
Listing Notes: Available now! 100% air conditioned! Divisible from 19,600 sf with office B-T-S. Fiber optic cable! Heavy power! Direct freeway access to I-35W
and Highway 10!
2525 Hwy 10 NE
Mounds View, MN 55112-4031
2525 Hwy 10 NE
Building Size: 6,050 SF Available SF: 6,050 SF
General Use: Retail Max Contig: 6,050 SF
Specific Use: Freestanding -- Other Min Div: 6,050 SF
Status: Existing Lease Rate: Negotiable NNN
Year Built: 2005 Sublease: No
Parking Ratio: 8.26 /1000 Listing Agent:
Cushman & Wakefield
Deborah Carlson
(952) 465-3370
Major Tenants:
Synders
Listing Notes: 2009 Real Estate Tax $45,476.00. Paid Annually to Ramsey County Freestanding building with drive-thru land & 41 parking stalls, situated
on .96 acres site. Strong location with easy access and great visibility from CO RD 10. High traffic count of approx. 21,600 vehicles per day. Developed in 2005
with quality design and contruction.
2546 Hwy 10
Mounds View, MN 55112-4032
Silver View Plaza
Building Size: 35,160 SF Available SF: 25,522 SF
General Use: Retail Max Contig: 13,176 SF
Specific Use: Neighborhood Center Min Div: 1,600 SF
Status: Existing Lease Rate: $8.00 - $10.00 NNN
Year Built: 1987 Sublease: No
Parking Ratio: 4.49 /1000 Listing Agent:
Kraus-Anderson Realty
Jim Stimmler
(952) 948-9417
Major Tenants:
Domino's Pizza
Fantastic Sams
Corvette Specialties
Listing Notes:
Listings Summary Report
Page 2 of 5
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2975 Hwy 10 NE
Mounds View, MN 55112
2975 Hwy 10 NE
Building Size: 1,427 SF Available SF: 1,427 SF
General Use: Retail Max Contig: 1,427 SF
Specific Use: Convenience/Strip Center Min Div: 1,427 SF
Status: Existing Lease Rate: Negotiable
Year Built: 1959 Sublease: No
Parking Ratio: /1000 Listing Agent:
Kraus-Anderson Realty
Jim Stimmler
(952) 948-9417
Major Tenants:
Thrifty Car Rental
Listing Notes:
5251-5267 Program Ave
Mounds View, MN 55112
Mounds View Business Park Bldg G
Building Size: 352,598 SF Available SF: 148,099 SF
Specific Use: Bulk Warehouse Max Contig: 148,099 SF
Status: Existing Min Div: 40,000 SF
Year Built: 1989 Lease Rate: $4.50 - $8.50 NNN
Office SF: Sublease: No
Dock Doors: 21
Drive-In Doors: 4
Listing Agent:
CB Richard Ellis
John Ryden
(952) 924-4641
Clear Height: 30.00 FTabc
Parking Ratio: 1.15 /1000
Rail: No
Sprinkler: Yes
Listing Notes: High-image business park setting with great freeway visibility. Features high quality finish level of office space and 30' clear, clean, warehouse
space with large truck court. Fiber optic cable- dual lines and large capacity. Great location with easy access to I-35W. Available Now!
Listings Summary Report
Page 3 of 5
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2375 Co Rd 10
Mounds View, MN 55112
Saturn of Moundsview
Building Size: 15,000 SF Sale Type: Owner/User
General Use: Retail Price: Negotiable
Specific Use: Automotive Price/SF:
Status: Existing
Year Built: Listing Agent:
The Davidson Companies, Inc
Robin Davidson
(651) 481-6290
Parking Ratio:
Major Tenants:
Listing Notes: 3.2 acre auto dealership site including the following: car wash, oil change,indoor display area, repair bays, onsite exterior display 150
automobiles, all equipment and fixtures. Opportunity for potential convenience/gas development.
2400 Co Rd H2
Mounds View, MN 55112
2400 Co Rd H2
Building Size: 11,416 SF Sale Type: Inv. or Owner/User
General Use: Retail Price: $650,000
Specific Use: Restaurant - Full Service Price/SF: $56.94
Status: Existing
Year Built: 1973 Listing Agent:
Investors of Minnesota
DJ Sikka
(952) 922-7211
Parking Ratio: 10.51 /1000
Major Tenants:
Listing Notes: 2.05 acres! 11,416 square feet Beautiful Sports Bar & Grill located in Mounds View. Music events for up to 500 people good parking, equipment
list available. Call Restaurant Brokers of MN, DJ Sikka 952-929-9273.
2408 Hwy 10
Mounds View, MN 55112
Mounds View City Center
Building Size: 11,196 SF Sale Type: Inv. or Owner/User
General Use: Office Price: $995,500
Class: A Price/SF: $88.92
Floors: 1
Specific Use: General Purpose
Status: Existing Listing Agent:
Suntide Commercial Realty, Inc.
Derrick Jensen
(651) 209-9614
Year Built: 1999
Parking Ratio:
Listing Notes:
Listings Summary Report
Page 4 of 5
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2525 Hwy 10 NE
Mounds View, MN 55112-4031
2525 Hwy 10 NE
Building Size: 6,050 SF Sale Type: Inv. or Owner/User
General Use: Retail Price: $2,500,000
Specific Use: Freestanding -- Other Price/SF: $413.22
Status: Existing
Year Built: 2005 Listing Agent:
Cushman & Wakefield
Deborah Carlson
(952) 465-3370
Parking Ratio: 8.26 /1000
Major Tenants:
Synders
Listing Notes: Freestanding building with drive-thru land and 41 parking stalls. Stong location with easy access and great visibility from Co Rd 10. High traffice
ount of 21,600 vehicles per day. Quality design and construction. Owner will consider leasing proposals.
2975 Hwy 10 NE
Mounds View, MN 55112
2975 Hwy 10 NE
Building Size: 1,427 SF Sale Type: Inv. or Owner/User
General Use: Retail Price: $295,000
Specific Use: Convenience/Strip Center Price/SF: $206.73
Status: Existing
Year Built: 1959 Listing Agent:
Kraus-Anderson Realty
Jim Stimmler
(952) 948-9417
Parking Ratio: /1000
Major Tenants:
Thrifty Car Rental
Listing Notes: Highly visible location. Great opportunity for automotive use, contractors office, fast food or small retail use.
5360-5372 Edgewood Dr
Mounds View, MN 55112
5360-5372 Edgewood Dr
Building Size: 8,300 SF Sale Type: Inv. or Owner/User
General Use: Office Price: $178,250
Class: A Price/SF: $115
Floors: 1
Specific Use: General Purpose
Status: Existing Listing Agent:
Premier Commercial Properties
Robert (Marty) Fisher
(763) 862-2005
Year Built: 2006
Parking Ratio: 5.42 /1000
Listing Notes: Professional image office condo built in 2006. Nicely arched entry areas. Great location. Plenty of parking. Only 1 unit left! Chiropractor, dentist,
builder on site. Join these professional users..10% down is all you need!
Listings Summary Report
Page 5 of 5
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Item No: 2
Meeting Date: June 6, 2011
Type of Business: Work Session
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Review Proposal to Lease Former Chamber Space at the
Mounds View Community Center
Background
The Mounds View Community Center office space (formerly occupied by the Twin Cities
North Chamber) has been vacant since May 2010. The amount of office space available
for lease is approximately 1,330 square feet. The location of the office space is shown on
the attached flyer.
Discussion
In October 2010, City staff received an inquiry about the vacant office space from Rev.
Alexander Collins of Redeemed Life Church International. Redeemed Life Church currently
holds Sunday services at Sunrise United Methodist Church in Mounds View.
On May 15, 2011, Rev. Collins submitted the attached proposal letter offering to lease the
vacant office space for $5 per square foot. He would use the space for the church offices,
weekly Bible studies, prayer meetings and for community gathering on Sundays from 10am
to 1pm.
Recommendation
Staff recommends that the City Council discuss the attached lease proposal letter from
Rev. Alexander Collins.
Respectfully submitted,
___________________________
Heidi Steinmetz, Economic Development Specialist
Attachments
Mounds View Community Center Office Space Flyer
Letter from Rev. Alexander Collins, May 15, 2011
OOffffiiccee SSppaaccee FFoorr LLeeaassee
55339944 EEddggeewwoooodd DDrriivvee,, MMoouunnddss VViieeww,, MMNN 5555111122
Leasing Contact: Heidi Steinmetz, City of Mounds View
Call 763-717-4029 or E-mail heidi.steinmetz@ci.mounds-view.mn.us
22001100 LLeeaassee RRaattee −− $$1100..0000 ppeerr ssqquuaarree ffoooott
Lease rate includes utilities, common area charges and garbage
Lease rate does NOT include taxes, phone, Internet, cable
or any other lessee desired improvements
SSiittee aammeenniittiieess
Market rate* use of the event center (max occupancy 300)
Market rate* use of meeting rooms (max occupancies 20 & 60)
Market rate* use of exercise facilities
Market rate* use of gym area
Ample parking
High speed Internet available for $37.50 per month + initial set up
*Discount provided for non-profits and religious institutions, residents and resident organizations.
Community Center Main Entrance
May 15, 2011
The Mounds View City Council
2401 County Road 10
Mounds View, MN 55112
Dear Council Members:
I am Rev. Alexander Collins, Lead Pastor at Redeemed Life Church International—7687 Long
Lake Road, Mounds View, MN. Our church is discussing with Ms. Heidi Steinmetz the
possibility of renting the 1300 square foot space current available at the Community Center.
As a follow-up to the discussion, this letter is intended to introduce our church to you, to
make an offer for the available space and to give the background, education, and training of
our pastor.
Redeemed Life Church is an authentic small (40-50) community of believers in Jesus Christ
as Lord and Savior. The church is community oriented, built on the centrality of Scripture,
the necessity of the new birth (new life in Jesus Christ), and the ongoing empowering work
of the Holy Spirit in the believer’s life.
Our mission is to lead more people find true life in Jesus Christ—John 10:10; Jeremiah
1:5, Matthew 28: 16-20, and
our vision is to become a multi-cultural, multi-racial life-giving church steadfastly grounded
on the prevailing Word of God and leading more people find true life in Jesus Christ to fulfill
their God-given purpose—Luke 19:10; Jeremiah 29:11; Isaiah 60:1-3.
Our Values--Christ-Centered --reflected in our character, family oriented, and community
focused. We go into the world with faithful hearts, listening ears, and bold spirits; we
engage our spheres of influence and beyond, welcoming all people to know Christ and his
kingdom, and we serve human needs within our local communities and the world—Psalm
103: 1-7
Our Offer for Space Rental--The 1300 square foot space will be used for office space,
weekly Bible studies, prayer meetings and for our community gathering on Sundays
10:00am-1:00pm. We would like to offer the City $5.00 per square foot for the first
two years and thereafter renegotiate the per square foot rate. Our church in
partnership with New Horizons Resource Group (NHRG)—a professional works-kills
development organization intends to use some of the space for a community computer lab
and job skills development training.
My Background, Education and Training—I am a father of three children, a husband to
Rebecca Collins for over eleven (11) years. I am an ordained pastor for over thirteen (13)
years and a MN State licensed pastor for over ten (10) years. I hold a Bachelor of Divinity
degree from Acts College, Currently a Master of Divinity graduating senior at Acts College. I
have a Mini-MBA Professional Certificate in Nonprofit Management from St. Thomas
University, and a student at the Wilder H. Foundation-- James P Shannon Community and
Non-profit leadership Institute. I am an accredited Global Career Development Facilitator
(GCDF) a Certified Offender Workforce Development Specialist (OWDS) with the MN
Department of Corrections and the National Institute of Corrections. I am also a certified
Personal Leadership (Empowerment) Facilitator (CEF) and have worked in the Workforce
Development Industry for over six (6) years teaching Financial Literacy, work-skills
Communication, Customer Service, Empowered Thinking and a host of Employment
Readiness classes. Outside of my pastoral duties, I work as a work/life-skills Coach and
Instructor and I definitely look forward to putting my skills to work within the Mounds View
community.
Council Members, if I or our church council can be of further help to this process, please do
not hesitate to contact me or the Church Council. My cell phone number is 763-742-6906
and the church phone number is 763-780-5433.
We are excited about the prospect of renting a space at the Community Center and we look
forward to your fruitful response. If at all possible, we would like to start using the space
by the middle of June 2011.
Grace and peace,
Rev. Alexander Collins
Item No. 4
Meeting Date: June 6, 2011
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 2012 Budget
City staff has been busy working on the details of the 2012 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 2012 Budget Issues:
The Legislature has adjourned for 2011 but will be called back into a special session by
the Governor as a result of his veto of all the spending bills. There is a serious impasse
between the Governor and the Legislature and there may be a state shut-down as a
result. The City had Local Government Aid (LGA) withheld of $339,558 and Market
Value Homestead Credit (MVHC) of $160,156 for 2010 and the budget passed by the
Legislature before the veto would withhold LGA and MVHC at no greater than 2010
amounts. The Council wisely did not include LGA in the 2011 budget. If the
Legislature’s budget is passed, our 2011 budget will be $14,990 short of what we
budgeted. ($484,724 certified for 2011 vs. 2010 amount withheld of $499,714)
General Fund 2011 Budget by Type
Personnel 62.4%3,534,391
Contractual services 21.4%1,208,747
Capital outlays 5.9%333,094
Supplies 4.4%249,589
Transfers 4.3%245,000
Fire debt service 1.6%89,662
Contingency 0.0%-
Total 100%5,660,483
General Fund 2011 Budget by Function
Police 40.7%2,304,086
Public Works 15.6%883,635
Park and Recreation 9.3%528,064
Community Development 8.2%463,831
Fire 5.3%297,467
Administration 4.1%233,117
Finance 4.4%247,870
Central Services 4.2%238,923
Legislative 1.1%60,917
Debt Service 1.6%89,662
Contingency 0.0%-
Misc. Contracual Service 1.2%67,911
Transfers to other funds 4.3%245,000
Total 100%5,660,483
The state began the legislative session with a $5 billion deficit for the 2012/2013 budget
period beginning on July 1, 2011. Staff recommends that we anticipate that the LGA
and MVHC will be reduced at the same level as 2010 of $499,714.
Inflation is moderate at present and the state levy cap will not be effective for 2012. The
City’s charter cap is more restrictive and excludes debt service and capital project levies
from inclusion in the cap calculation. A 1% levy increase would generate an additional
$41,814 in tax revenue. The maximum the levy could increase under the City Charter is
4% – 4.5% depending on inflation and excluding debt service and capital projects.
($167,256 to $188,163)
The City will be negotiating with the four bargaining units for the 2012/2013 contract
years. 14 employees will receive step or longevity increases in 2012. The 2010 and
2011 budgets provided for no cost of living wage increase. The City laid off the
Community Development Director in early 2011 due to greatly reduced permit revenue
and with the anticipation that future permit revenue would continue at a reduced level
for some time. This layoff will help off-set any additional cuts to state aid for 2011. The
economy is still very fragile and has seen very slow growth.
Health insurance cost increases are not known, we will receive our rate notice in mid
August. The impact to the budget will depend on the labor contracts. The City’s health
insurance contribution increased $35.13 in 2011 to $867.33 per month.
The employer share of PERA will remain at 7.25% for Coordinated plan members and
14.4% for Police for 2012. PERA coordinated rates have increased from 5.53% in 2005
to 7.25% in 2011, police PERA rates have increased from 9.3% in 2005 to 14.4% in
2011.
The payroll cost for 48 FT and 2 PT employees is $2,152 per hour, $17,216 per day,
$86,080 per 40 hour week and $4,475,160 per year.
County dispatch fees will increase $13,044 or 16.91% to $90,188.
Fire department costs will most likely increase in 2012 after being flat for 2 years.
Information technology costs will increase for 2012 by about $3,600 after 3 years of no
increase.
Fuel prices were budgeted at $3.25 for 2011, staff would recommend using $4.50 for
2012 this will add $27,125 to the General Fund budget.
Overall most revenues that are tied to economic activity will be flat. Investment income
will remain flat to slightly increasing in 2012 as a result of Federal Reserve activities and
the threat of inflation. The franchise fee rate is at 3.87%; the revenue generated from
this fee will be dependent on commodity prices and economic activity in 2012.
2010 General Fund reserves are $2,820,035 this represents 49.82% of 2011 budgeted
expenditures and transfers. Fund balance increased by $63,519 for 2010 as a result of
decisions the City Council made in an effort to off-set additional LGA and MVHC cuts
and unanticipated fee income from the sale of conduit debt. The City’s budget has been
under pressure for several years due to LGA and MVHC cuts at the state level, with
very little left in discretionary budget items. The Council will need to give direction on
how they would like to resolve the coming General Fund deficit. One of the City’s goals
is to develop a sustainable budget. The deficit will be in the $150,000 to $250,000
range. Some items the Council can consider are:
Reduce services/personnel
Increase transfers
Increase the property tax levy
Use fund balance
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 2012 budget and are
presented for your consideration.
Respectfully Submitted,
Mark Beer