HomeMy WebLinkAboutCC WORKSESSION 04292008City of St. Anthony Village
Work Session Agenda
April 29, 2008
following the Joint Meeting with the School Board
Anticipate 6.30 p.m.
1. Call to Order.
2. Overview of 2009 Budget — Mike Mornson, Roger Larson
3. Capital Equipment Requests by Department Heads
4. CIP Infrastructure Update— Todd Hubmer, WSB & Associates.
5. Other Business.
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MEMORANDUM
DATE: April 14, 2008
TO: Mayor and Councilmembers
FROM: Mike Momson, City Manager
Roger Larson, Finance Director
ITEM: 2009 BUDGET DISCUSSION
Staff has started the process of constructing the 2009 operating budget. The budget will
be impacted by the 3.5% salary increase negotiated with the three unions, a $50.00
increase per month in the employer health insurance contribution and escalation of
energy and fuel prices. At this time, the estimated increase in the 2009 budget is
projected between 5% - 9 %.
In addition, the Debt Levy will increase approximately $145,000 with the Silver Lake
Road Project that will be approved on May 13th. The total impact is estimated at
$175,000; however, $30,000 will be offset by the pay -off of the three bonds.
For tonight's work session, staff has compiled a list of items for Council's review and
consideration. Roger and I will discuss the items listed below and those listed on Page #2
of this memo.
General Oaeratine Budeet
Item #1
✓ Annual Ramsey County recycling payment ($5,000.00).
• Not enough activity in Recycling Fund to support payment.
• Funding considerations.
Item #2
✓ New accounting standards SAS
o Prior to 2007
■ Expenditures could be offset by Revenue.
• Current Standards
■ Expenditures and Revenues must be separate line items.
• Activity is in the General Fund (See Attachment A)
■ At some point this could make the General Fund look over budget.
• Considerations:
■ Do nothing knowing that all expenditures are offset by revenue.
■ Project and add revenue and expenditure line items for this activity
(Example — add $25,000 revenue line item and $25,000 expense
line item). Net affect on budget and levy is zero.
■ Takes stress off of General Fund bottom line.
Item #3
✓ GIS on -going costs will become part of general operating budget.
• Annual on -going costs = $1,500
• Increase — part of Engineering /Planning/Zoning budget
• Small current annual budget $3,100 (adding $1,500 = 48.4% increase)
Page 2
Item #4
✓ Police Department:
o Final $30,000 is added to salaries for 3 -year phase in of the hiring of a
new police officer.
o Proposed addition of part-time data entry clerk.
■ Annual cost $15,000 (Salary & Benefits).
Item #5
✓ Council considerations, recommendations, input or questions for General Fund?
Capital Improvement Proiects
Item #6
✓ 2007 "War Chest" for Capital Improvement Projects.
• $4,000,000 authorized cash expenditures in 2007 (See Attachment B)
• What's left in the Chest?
✓ Re- establish "War Chest" for future year's projects.
• Annual $200,000 available in Bond Fund.
• Consideration to add $50,000 from the remaining funding for the pay -off
of the three road improvement bonds.
■ Every four years the City would have $1,000,000 set aside.
• Once in the bond fund, the money access is limited and can only be used
to make bond payments.
To access the funds and have them set aside, the General Fund
Levy is increased by $200,000, a line item is established in the
General Fund and the Road Improvement Levy is decreased by
$200,000.
• Net affect is zero increase.
Item #7
✓ Emerald Park.
o Project estimated at $1.4 million.
■ Potential exists for internal loan from Water Filtration Fund
■ Annual interest rate = 5 %, principle and interest payments for 15
years.
• Annual P/I payment= $130,667.
o (See attached amortization schedule).
Funding considerations:
• Establish Annual Levy
• Time the project to the decertification of the Chandler TIF
District (becomes 2010 project —151 year payment 2011).
o $87,000 is then available to offset impact.
o Designate the $50,000 from the remaining funding
for the pay -off of the three road improvement
bonds.
o Reduces the annual War Chest funding to $200,000.
• When available, use the money in the War Chest to fund
the project — 5 year wait.
Other Discussion Item:
Item #8
✓ Tautges, Redpath — Final year of 3 year agreement
• Effective but costly.
■ Have a tendency to bill like an attorney.
• Council satisfaction with the process /performance
■ Should the City go out for bids?
General Fund Budget to Actual Report: December - 2007
Expenditures:
Mayor /Council
Intergovernmental Relations
Cable Franchise
General Management
Elections
Finance /Insurance
Finance /Assessing
Legal
Engineedng /Planning /Zoning
City Buildings
Civil Defense
Police Protection
Lauderdale /Falcon Heights
DARE
Fire Protection
Fire Relief Association - 2% Pension
Inspections /Building Permits
Animal Control
Public Works
Public Works /Maintenance & Repair
Tree and Weed Care
Parks
Community Services Grandfather Levy
Non - Budgeted /Other
Total Expenditures
*Offset by Cable Franchise Revenue
**Offset by Building Permit Revenue
Current General Fund Revenues
Attachment A
$4,771,900.00 $4,927,295.57 $155 395.67
Offset by Revenue:
Police
Falcon Heights Community Grant
Safe & Sober
Citizens Academy
ACE - DUI Grant
Operation NiteCap
State Fair /Street Rod
Police Miscelleneous Services
Forensic Computer Grant
Safety Fair/Town Meeting
Fire
Residential Clean Up (Robert Berg)
Other
Insurance Reserves /Deductibles
Emergency Squad Repair
MN Symposium - Emergency Prepardness
Village Fest - Reimburseables
Total 2007 Expenditures
$725.19
$9,341.71
$3,541.51
$4,120.66
$864.69
$1,771.20
$1,169.66
$807.18
$1,199.87
$27,672.02
$4,924.93
$5,685.80
$740.00
$1,622.06 $64,186.48
$4,771,162.81
RevenueslExpenditures $156,132.76
Mean Average
100%
1213112007
Percentage
Remaining
Budoet
Y -T -D
Balance
Spent
Budget
$58,200.00
$52,616.80
$5,583.20
90%
10%
$25,100.00
$24,070.26
$1,029.74
96%
4%
$25,600.00
$32,856.92
•
- $7,256.92
128%
-28%
$92,600.00
$101,230.75
- $8,630.75
109%
-9%
$30,900.00
$22,101.33
$8,798.67
72%
28%
$258,400.00
$252,840.64
$5,559.36
98%
2%
$47,500.00
$41,330.40
$6,169.60
87%
13%
$96,300.00
$73,940.85
$22,459.15
77%
23%
$3,100.00
$3,792.36
- $692.36
122%
-22%
$161,800.00
$154,436.53
$7,363.47
95%
5%
$52,100.00
$52,874.83
- $774.83
101%
-1%
$1,288,300.00
$1,243,029.15
$45,270.85
96%
4%
$919,600.00
$931,288.65
- $11,688.65
101%
-1%
$14,500.00
$14,204.03
$295.97
98%
2%
$668,200.00
$653,585.73
$14,614.27
98%
2%
$50,000.00
$45,604.00
$4,396.00
91%
9%
$86,700.00
$106,443.52
•*
- $19,743.52
123%
-23%
$4,400.00
$1,975.62
$2,424.38
45%
55%
$480,000.00
$481,240.99
- $1,240.99
100%
0%
$152,700.00
$162,746.69
- $10,046.69
107%
-7%
$34,200.00
$31,524.11
$2,675.89
92%
8%
$169,500.00
$171,166.61
- $1,666.61
101%
-1%
$52,200.00
$52,175.56
$24.44
100%
0%
$0.00
$0.00
$0.00
00/0
00/0
$4,771,900.00
$4,706,976.33
$64923.67
99%
1%
$4,771,900.00 $4,927,295.57 $155 395.67
Offset by Revenue:
Police
Falcon Heights Community Grant
Safe & Sober
Citizens Academy
ACE - DUI Grant
Operation NiteCap
State Fair /Street Rod
Police Miscelleneous Services
Forensic Computer Grant
Safety Fair/Town Meeting
Fire
Residential Clean Up (Robert Berg)
Other
Insurance Reserves /Deductibles
Emergency Squad Repair
MN Symposium - Emergency Prepardness
Village Fest - Reimburseables
Total 2007 Expenditures
$725.19
$9,341.71
$3,541.51
$4,120.66
$864.69
$1,771.20
$1,169.66
$807.18
$1,199.87
$27,672.02
$4,924.93
$5,685.80
$740.00
$1,622.06 $64,186.48
$4,771,162.81
RevenueslExpenditures $156,132.76
"War Chest - 2007"
2007 - Silver Lake Road
Chandler TIF District $798,585.00
WAC /SAC $50,603.00
Stormwater Fund $350,812.00
$1,200,000.00
2007 - Street Recon /Foss Road Lift Station
Chandler TIF District $465,578.83
WAC /SAC $36,752.00
Apache Walmart TIF #3 -5 $654.141.14
$1,156,471.97
2007 - Wireless Water Meters
Construction $532,203.33
Reserves $167,796.67
$700,000.00
2007 - Bond Issues Called
1997A Road Improvement Bond
1999A Road Improvement Bond
2003D Road Improvement Bond
2007 - Northeast Diagonal Trail
TOTAL CASH DRAW DOWN
$350,000.00
$250,000.00
$325,000.00
$925,000.00
$35,000.00
$4,016,471.97
Left in the Chest?
2007 - 2008 Cash Draw Down
Attachment B
Reduction in Levy Pay -off of Three Bonds $87,000.00
Silver Lake Road Levy (Projected) $37.000.00
Remaining $50,000.00
Annual $200,000 in Bond Fund $200,000.00
TIF District - 2011 $87,000.00
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04/01108
IMPORTANT DATES
St. Anthony Budget Schedule for 2009 Budget
January 10 &11, 2008 Goal Setting, Financial Management and Planning.
March 18, 2008: Review Key Financial Management Plan (Ehlers).
April 22, 2008: Public Hearing /Provide Residents with an Opportunity to have
Input in the budget process.
April 29 2008: Work Session — Staff & Council to review Capital Equipment.
May - July: City Manager & Staff Meetings to discuss /draft 2009 Budget.
July 29, 2008: Work Session to Review Key Proposed 2009 Operating
(Tentative) Budget and Tax Levy.
September 9, 2008: Presentation of proposed the 2009 Budget/Property Tax Levy
Resolution passed:
1) Setting the proposed 2009 Budget and Property Tax Levy.
2) Approve the December Truth -in- Taxation Hearing dates.
November 27, 2008 * ""
December 20, 2008: Dates established to hold a Truth -in- Taxation /Public Hearing.
December 1, 2008: Presentation of 2009 Operating Budget and Levy.
(Tentative)
December 16, 2008: Approval and final adoption of the 2009 Operating Budget
(Tentative) and Property Tax Levy.
" "'Please note: The public hearing must be held between December 1st and December
20th. The first Monday in December is reserved for City Governments. If an alternate
date is selected, the initial cannot be held on the same day as Hennepin or Ramsey
Counties Initial Hearing Dates, I.S.D. #282 Initial Hearing Date or Metro Special Taxing
Districts Initial Hearing Date.
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MEMORANDUM
DATE: April 9, 2008
TO: Mayor and Councilmembers
FROM: Mike Morrison, City Manager
Roger Larson, Finance Director
ITEM: 2009 CAPITAL EQUIPMENT BUDGET
The St. Anthony Department Heads met to discuss the 2008 and 2009 capital equipment
budgets. After preparation of the 2008 budget, the City received notification of a
$60,000 shortfall in MSA funding. It is anticipated that with the increase in the gas tax
the shortfall will be partially or totally reinstated in 2010.
Most of the 2008 equipment has either been purchased under the state contracts or has
been ordered which makes it difficult for staff to cut back on `08 purchases. In
reviewing, the fund balance on hand, at 12/31/07 it totaled $178,208 and is adequate to
absorb the 2008 shortfall.
Moving forward with the 2009 budget, staff addressed the shortfall by deferring some of
the 2009 purchases and reducing the total '09 expenditures to $400,000. In doing so, it
should be noted that staff viewed this as a one year adjustment and anticipates the
allocation returning to $450,000 in 2010.
Last year was the first year the Council met with the three Department Heads from Public
Works, Police and Fire to review their individual capital equipment requests. This year,
we thought we would do that again, but do it as a whole group.
All staff is here tonight to answer questions from the City Council concerning the
$400,000 request for `09.
CAPITAL EQUIPMENT - 2009 Budget
Capital Equipment Revenues:
Appropriation from Reserves
LiquorOperations Profits ................................................. ............................... .......................$200,000
........................$10,000
MSARevolving Funds .............................................................................. ..............................$
90.000
Water Filtration Interest Earnings ..................................... ............................... ........................$50,000
..............................$ 8,000
Fund Balance /Reallocation of Trade /Sale of Existing Equipment ............ ...............................
$60,000
Total Revenues ..................................... ...............................
$400,000
Capital Equipment Expenditures:
Police:
........................$10,000
ThreeSquad Cars .......................................................................
............................... $78,000
Tear Down & Build New Squads ...................................................
..............................$ 8,000
Equipment Replacement/Squad Cars ..........................................
..............................$ 6,000
CrimeNet/State Computers Upgrades ..........................................
..............................$ 5,000
MP5's- Firearms ..........................................................................
..............................$ 4,000
OfficeFurniture ...............................................................................
..............................$ 5,000
........................................
MDC's ......................... . _........... .. _......... _................ _..... _.....
............................... $15,000
Total Police ..................... ...............................
.......................$121,000
Fire
TurnoutGear ........................................................ ...............................
........................$10,000
Pagers... ..................... ...........................
$ 3,200
ThermalImager ............................................................................
............................... $18,000
Computers / Printers .......................................................................
..............................$ 2,000
Radio' s ...........................................................................................
............................... $2,000
Total Fire .............. ...............................
........................$35,200
Public Works - Equipment:
PortableHoist ............................................................................ ...............................
$ 35,000
Utility JetterNac Truck .............................................................. ...............................
$150,000
Park Playground Equipment ........................................................ ..............................$
20,000
Refurbish Ball Fields/ Maintenance .............................................. ...............................
5,000
Total Public Works ............................
.......................$210,000
Finance /Administration
Ethernet/ACS 400 Upgrades .......................................................... ..............................$
3,300
Cisco Ethernet Switch /transceiver & Wireless Upgrades .............. ..............................$
7,000
File Server & Software Upgrades for Network (Roseville) .............. ..............................$
8,500
Misc. — Network & Computer Upgrades .......................................... ..............................$
3,000
Office Furniture (GIS /Public Works) ................................................ ..............................$
7,000
City Council & AN Improvements ......................... ............................... .........................$
5.000
Total Finance /Administration ............ ........................$33,800
Total Expenditures....
Deferred to future years
Police:
MP5's Firearms — Reduced Line Item
Tazers .................... ...............................
Radar Replacement ............................
Public Works:
Crane........... ...............................
...$400,000
. ............................... ($1,000)
. ............................... ($3,000)
. ............................... ($4,000)
($40,000)
Finance Administration:
Deferred Computer /Printer Replacement Schedule ............... ............................... ($14,000)
Added back to Office Furniture & AV Upgrades ........................ ..............................$ 12,000
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& Associates, Inc.
Infrastructure 1 Engineering 1 Planning 1 Construction
April 18, 2008
Honorable Mayor, City Council, and Staff
City of St. Anthony Village
3301 Silver Lake Road NE
St. Anthony, MN 55418
Re: City Engineer's Update on the Financial Status of Engineering Projects
WSB Project No. 1065 -22
Dear Honorable Mayor, City Council and Staff:
701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
To]: 763-541-4800
Fax: 763-541-1700
We have recently reviewed the status of the budgets for projects recently completed or currently in
process. Based on our review of the projects, there are a number which have been completed on or
under budget, and one project which is anticipated to exceed its budget in 2008. Below please find
a list of projects, along with the budgeted amount for the project and the actual expenditures
anticipated at completion.
1. Automated Water Meter Replacement Project / I &I Inspections
This project replaced the existing manual read water meters within the City with an
automated system, and inspected homes for non - compliant foundation drains and sump
pumps. This project began in 2006 and is anticipated to be completed within the next three
months. We are currently reading over 2,200 meters within the City and anticipate the
remaining issues will be resolved. Project management will continue through the leaf on
condition of trees this spring.
Budgeted Project Amount: $700,000
Anticipated Cost to Completion: $680,000 4690,000
Completed Under Budget by: $10,000 420,000
2. Water Treatment Plant Filter Improvements
The purpose of this project was to improve the ability of the City's water treatment plant
filters to remove iron and manganese from the water supply. This project has succeeded in
eliminating all calls related to water quality aspects of drinking water within the City.
Budgeted Project Amount: $650,000
Actual Cost to Complete: $500,000
Completed Under Budget by: $150,000
Minneapolis 1 St, Cloud
Equal Opportunity Employer r:, nrn' mdocs- zzttx- m�x.und�w {�atnrs.d�e
Honorable Mayor, City Council and Staff
April 18, 2008
Page 2
3. 2007 Street Reconstruction
This project included the reconstruction of City streets, the installation of a new sanitary
sewer system to serve Silver Lake Village along 39`h Avenue and Chandler Drive,
replacement of the Foss Road Lift Station, and construction of a new forcemain from the lift
station to the City of Roseville. This project is anticipated to be completed in early summer
of 2008.
Feasibility Estimate: $4,752,000
Budgeted Project Amount: $4,450,000
Anticipated Cost at Completion: $4,630,000
Anticipated to be Over Budget By: $180,000
The following construction - related issues have contributed to increases in project costs:
1. Revising and reissuing bid documents three times for the Foss Road Lift Station
(Incorporating this work into the street project resulted in $350,000 to $400,000 in
savings over the previous two bids for the lift station and forcemain construction).
2. Streetlight costs for Highcrest Avenue and Old Hwy. 8 increased from the original
Xcel estimate of $216,500 to $244,000 (an increase of $27,500).
3. Rice Creek Watershed District permit requirements for the construction of a
biofiltration facility at the intersection of Shamrock and 39`h Avenue NE added
$30,504 (Meyer Contracting quoted $60,000+ for these improvements; we solicited
other interested proposals and awarded the contract to Second Nature Landscaping
for nearly half the price).
4. Estimated cost to repair 10 watenmain breaks on Chandler Drive and Foss Road of
approximately $40,000. These breaks were the result of deteriorating watermain and
were repaired by the contractor due to their proximity to the project site)
5. Mill and overlay of Hwy. 8. This road essentially crumbled during the preparation
of the east side for curb and gutter to accommodate the new sidewalk. This was an
additional cost of $50,000. (Again, we solicited outside pricing and negotiated a
deduction from Meyer Contracting to complete this work, their original estimate was
$118,000.)
There are a few anticipated changes to occur yet this spring which could alter the projected
price of the project, and they are:
1. Total quantity of asphalt used to complete the second lift on the roadways.
2. We have deducted $26,250 for liquidated damages on the project for completion
beyond the original completion date, and are in the process of enforcing those
claims.
I II I'll 7A 1065- 22 1]H- hngr { pdmr4141- InY.Jno
Honorable Mayor, City Council and Staff
April 18, 2008
Page 3
3. Additional work, as necessary, to address issues brought to our attention by residents
this spring.
4. Street and Utility Funds
Based on a review of the street funds by the Finance Director, he has indicated that
approximately $38,000 of undedicated funds remain in the Street Reconstruction Account
from previous projects. These funds must be expended by early 2008 or be dedicated to
paying off previous bond issuance.
In summary, we are seeking a Resolution from the City Council to address the funding shortfall
associated with the increase of costs for the 2007 Street Reconstruction Project. This Resolution is
necessary, as determined by the City's Finance Director, to transfer funds from the Water & Utility
and the Street Improvement Funds to cover the shortfall in the 2007 street and utility project. We
request that the Council consider dedicating the remaining portion of the Water Treatment Plant
Improvements and the remaining balance in the street project fund to the 2007 street project. This
will provide $188,000 to cover the anticipated shortfall in the 2007 Street Reconstruction Project.
I will be present at the April 29, 2008, City Council work session to discuss these issues with you
and answer any questions you may have. If you would like additional information prior to the
meeting, feel free to call me at 763 - 287 -7182.
Sincerely,
WSB & Associates, Inc.
Todd E. Hubmer, PE
City Engineer
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WSB
&Assoc Infrastructure 1 Engineering 1 Planning 1 Construction
April 18, 2008
The Honorable Mayor, City Council and Staff
c/o Michael Morrison
City of St. Anthony Village
3301 Silver Lake Road NE
St. Anthony Village, MN 55418 -1603
Re: City Assessment Policy on State Aid Routes
St. Anthony Village, MN
WSB Project No. 1626 -22
Dear Honorable Mayor, City Council, and Staff:
701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763 -541 -4800
Fax: 763-541-1700
This letter has been prepared in an effort to discuss funding issues related to the reconstruction of future
Municipal State Aid Routes. Attached please find a figure that shows the Municipal State Aid Routes
within the City which are anticipated to be reconstructed within the next 15 years.
The City currently funds reconstruction of interior roads through the 429 bond process, which requires a
minimum 20% of the bond amount to be assessed to the benefited property owners. However, the 429
program is currently not available for funding Municipal State Aid Routes under the City's assessment
policy, as the City does not assess the benefits to the adjacent landowners.
The City's assessment policy anticipates that funding levels from the State would be adequate to replace
existing utilities and street surfaces on the State Aid system. Currently, the funding levels from the
State of Minnesota are not adequate to meet the demands of our aging infrastructure. Below are a few
comments in regard to the existing funding levels, and needs related to the reconstruction of Municipal
State Aid Routes in the City.
The State construction allotment to the City of St. Anthony for Municipal State Aid Routes is
approximately $170,000 annually. Of this $170,000, $70,000 of it is currently used to pay off a
State Aid bond which was issued for the reconstruction of 29`h Avenue. This bond will expire in
2015.
2. The City has approximately $1.6 million in eligible expenditures which are currently being
reimbursed by the State for improvements on 33`d Avenue and 29`h Avenue. These expenses are
being reimbursed to the City at a level of approximately $100,000 annually. This $100,000 is
the $170,000 construction allotment minus the $70,000 bond payment. This is paid to the City
in cash allotments each year. This level of reimbursement will continue approximately through
2015, at which point the bond will be paid and the allotment will go up in excess of $170,000 a
year. This means the City will not reasonably accumulate cash in the State Aid account for
construction and replacement of Municipal State Aid street and utilities until year 2021.
Minneapolis 1 St. Cloud
Equal Opportunity Employer KNO 1626- 22' ,Admin'd)ocsdJR- 1,mcc- 040303.doc
The Honorable Mayor, City Council and Staff
City of St. Anthony Village
April 18, 2008
Page 2
3. The current cash distribution to the City of St. Anthony for reimbursement of the $1.6 million is
currently earmarked toward the Capital Equipment Fund. This is a legitimate process, as the
City has essentially fronted to the State Aid system $1.6 million of local funds from other
sources to cover the gaps in Municipal State Aid funding on past projects.
4. The lack of funds available until the year 2021 will seriously limit our ability to manage and
maintain the existing performance of streets and utilities on Municipal State Aid Routes. An
example of this is Chandler and Foss Road north of 37'h Avenue. Over the last 14 months we
have seen more than 13 watermain breaks on Foss Road and Chandler Drive, the pavement and
utilities under the street are rapidly deteriorating, and is the number one priority for replacement
at this time.
Both the Cities of Columbia Heights and Roseville have approached the City of St. Anthony to
complete mill and overlay programs on Silver Lane and Highcrest Avenue along our boundaries.
Both of these roads are Municipal State Aid routes and we currently do not have a budget item
to allow for an overlay or adequate construction funds from Municipal State Aid to participate in
these improvements.
In an effort to evaluate various alternatives for financing, the City of Columbia Heights recently
completed a survey of a number of communities related to assessment policies on Municipal State Aid
Routes. Below are a few of the comments they received from their inquiries of other municipalities:
North St. Paul
City State Aid Routes are assessed. Residential streets are assessed at cost. Assessments follow
the 429 Best Management Practices plan.
Local streets are 100% assessed if the improvements are driven by development, otherwise a
portion of the project costs are assessed. Tax dollars are not used to assist in funding the
projects.
West St. Paul
City State Aid Routes are assessed.
Local streets are assessed 25% of the project cost.
Crystal
City State Aid Routes are assessed.
Robbinsdale
City State Aid Routes are assessed by the lineal foot at the same rate as local streets.
K:,0I 626= 2,Admin Docs.L1R- hmcc- 040308.doc
The Honorable Mayor, City Council and Staff
City of St. Anthony Village
April 18, 2008
Page 3
Fridley
City State Aid Routes are assessed.
Local street assessments vary depending on the type of project.
New Briehton
City State Aid Routes are assessed the same as local streets. Additional costs to meet State Aid
requirements are not assessed.
Golden Valley
City State Aid Routes are assessed. Residential parcels are assessed $1,100 per lot and
Commercial parcels are assessed 45% of the construction cost based on front footage.
White Bear Lake
City State Aid Routes are assessed. A portion of the construction cost on major routes is
assessed, the cost of constructing parking lanes, except for striping, is excluded from the
assessment. Residents with property on both sides of the street are assessed less.
South St. Paul
City State Aid Routes are assessed at the same unit rate as all residential property and is adjusted
annually.
Based on the current funding levels from the State of Minnesota for Municipal State Aid Routes, the
current condition of Municipal State Aid Routes and their utilities, we are requesting the City Council
give consideration to amending the City's street assessment policy to allow for the assessment of
Municipal State Aid routes at a level not to exceed the cost to construct local streets. Attached for your
consideration and discussion at the April 29 Council work session is an amended assessment policy to
be used for the discussion.
If you have any questions, I will be available at the Council work session or you may call me at 763-
287 -7182.
Sincerely,
WSB & Associates, PW.
Todd E. Hubmer, PE
City Engineer
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CITY OF ST. ANTHONY
ASSESSMENT POLICY
Adopted March 2008
ASSESSMENT PERIOD
Sanitary Sewer
10 years
Water Main
10 years
Storm Sewer
10 years
Street Construction
10 years
Street Resurfacing
10 years
Sidewalks
10 years
For multiple improvement types that occur as part of the same project, the assessment shall be 15
years. No assessment for a single improvement shall exceed 10 years.
The following sets forth the City's general assessment policies, but these policies may be modified to
the extent necessary to result in special assessment amounts which do not exceed the special benefits
to the respective properties being assessed, unless greater assessments have been agreed to by the
owners impacted by the proposed improvements.
UPGRADING OF PUBLIC ROADWAYS
For reconstruction of existing roadways, the City's policy is to replace the existing surface, whether
concrete or bituminous, with bituminous roadways and concrete curb and gutter.
For street reconstruction, 35% of the cost for a project will be obtained from sources other than ad
valorem taxes. For street overlay, 50% of the cost for a project will be obtained from sources other
than ad valorem taxes.
All property will be assessed on a basis of front footage as specified below.
1) Non tax - exempt property zoned R -1, R -IA, R -2, and R -3 shall be assessed a minimum of
35 %, and the overlay 50 %, of the actual cost for a 7 -ton, 32 -foot wide bituminous pavement
with concrete curb and gutter and routine drainage. The above property shall be assessed for
this type of roadway even if the width or strength is greater.
2) All tax - exempt property regardless of zoning class, such as, but not no necessarily limited to
schools, churches, parks, and government land, shall be assessed on a front footage basis at
50% of the cost of a 7 -ton, 32 -foot wide pavement with concrete curb and gutter and routine
drainage. The above property will be assessed for this type of roadway even if the width or
strength is greater.
3) All property not covered in the above description shall be assessed on a front footage basis at
50% of the cost for improvements to the roadway that they abut.
In addition to the costs above, all property may be assessed a proportional share on a footage basis
for expenses such as right -of -way and easement acquisition needed for that segment of the project
including any roadways abutting the property.
Page I
ALLEYS
Alley reconstruction or overlays shall be assessed at 100% on a front footage basis to the abutting
properties.
CONDOMINIUMS
Assessments shall be spread by dividing them according to the percentage of interest in common
elements of the street improvements.
MUNICIPAL STATE AID ROADWAYS
Assessments on Municipal State Aid roadways shall be levied against the benefited properties on
the same basis as other public streets.
Municipal State Aid finding provided for reconstruction of a particular segment of street will be
used by the City to fund non - assessed costs, and will not be used to reduce assessments to the
properties adjacent to these facilities.
STORM DRAINAGE
Improvement costs for storm drainage shall be paid for wholly out of the storm drainage utility fund
and not assessed to benefited properties.
SANITARY SEWER & WATER MAIN
Improvement costs for sanitary sewer and water main improvements shall be paid for wholly out of
their respective utility funds and not assessed to benefited properties. New service lines for
individual properties shall be assessed at 100% of actual costs. Water service line replacement costs
shall include the installation of new curb stops and curb boxes, or new gate valves, depending on the
size of the water service.
SIDEWALKS
Sidewalk replacement as part of street reconstruction projects shall be assessed to all properties
abutting the project at the same rate as for street reconstruction, subject to front footage requirements
outlined within this policy.
New sidewalk installation performed as part of the City's Comprehensive Plan shall not be assessed
to adjacent property owners.
Page 2
METHODS FOR DETERMINING FRONT FOOTAGE
STANDARD LOT
Front footage equals the length of
the lot abutting the street receiving
the improvement. See Figure 1
FOUR SIDED ODD SHAPED
LOTS
Front footage equals the area of
the lot divided by the average of
the two depths. See Figure 2.
Figure 1
STANDARD LOT
ASSESSABLE FOOTAGE - STREET FOOTAGE
STREET
60'
EXAMPLE
1. WORK ON STREET
ASSESSABLE FOOTAGE - 60 FT.
FOUR SIDED
ODD SHAPED LOTS
LENGTH _ AREA / AVERAGE OF TWO SIDES
AVENUE
12
I-
W ]262'
0'
N L4898 SF
16]'
1]4
EXALLPIE \ \VIA
1. STREET LENGTH
AVERAGE OF TWO SIDES - (112 +174)/2 - 143 FT
STREET LENGTH - 14,898 SF / 143 FT - 104.18 FT
2. AVENUE LENGTH
AVERAGE OF TWO SIDES - (187 +72.82)/2 - 119.81 FT
AVENUE LENG7M - 14.898 SF / 119.81 FT . 124.35 FT
THE STANDARD ASSESSMENT IS THEN APPLIED TO THESE LENOMS.
Figure 2
Page 3
ODD - SHAPED LOTS WITH
GREATER THAN 4 SIDES
Front footage equals the area of
the lot divided by the average
depth of lots in the immediate
vicinity. See Figure 3.
CORNER LOTS
Front footage equals the
dimension of the shorter side plus
one -third of the long side if work
is done on both streets. If work is
performed on the short side only,
front footage equals the short side
length. If work is performed on
the long side only, front footage
equals one third of the long side
length. See Figure 4.
ODD SHAPED LOTS
WITH GREATER THAN 4 SIDES
LENGTH - AREA / AVERAGE DEPTH
WHERE AVERAGE DEPTH - AVERAGE DEPTH OF
LOTS IN THE IMMEDIATE VICINITY.
STREET
50' 70' 70'
W
D
Z
W 8700 SF
¢ °u
80' 70' 70'
EXAMPLE
1. STREET LENGTH - 8700 SF / 120 FT - 72.50 FT
2. AVENUE LENGTH - 8700 SF / 70 Fr - 124.29 FT
THE STANDARD ASSESSMENT IS THEN APPLIED 70
THESE LENGTHS.
Figure 3
CORNER LOT
ASSESSABLE FOOTAGE -
MREET FOOTAGE + 1/3 AVENUE FOOTAGE
+ 1/3 ALLEY FOOTAGE
STREET
60'
z
W
W N
60'
ALLEY
EXAMPI
1. WORK ON STREET
ASSESSABLE FOOTAGE - 60 FT.
2. WORK ON AVENUE
ASSESSABLE FOOTAGE - 120/3 Fr. - 40 Fr
3. WORK ON ALLEY
ASSESSABLE FOOTAGE = 60/3 FT. - 20 Fr
3. WORK ON STREET, AVENUE AND ALLEY
ASSESSABLE FOOTAGE - 60 + 40 + 20 Fr - 120 FT
Figure 4
Page 4
CORNER LOTS WITH
CURVES
Front footage is determined for
corner lots with curves as in
standard comer lots, with %2 of the
curve length applied to the short
side of the lot and %2 of the curve
length applied to the long side of
the lot. See Figure 5.
DOUBLE FRONTAGE LOTS
Front footage is determined
similar to a corner lot. Work on
one street is assessed full length
while the other street is assessed
1/3 of its length. In cases where
the double frontage includes an
alley, the street side shall be
assessed the full length, and the
alley side shall be assessed the 1/3
length. See Figure 6.
LOTS WITH CURVES
1/2 OF CURVE LENGTH IS APPLIED TO STREET
1/2 OF CURVE LENGTH IS APPLIED TO AVENUE
STREET
CURVE -
4712•
w
z
Z P
w
a
EXAMPLE
1. STREET LENGTH - 30 + 47.12/2 - 53.96 Fr
2. AVENUE LENGTH - 90 + 47.12/2 - 116.56 FT
THE STANDARD ASSESSMENT IS THEN APPLIED TO
THESE LENGTHS.
Figure 5
DOUBLE FRONTAGE LOT
ASSESSABLE FOOTAGE -
SIREET A FOOTAGE + 1/3 STREET B FOOTAGE
STREET A
6B•
60'
STREET B / ALLEY
EXAMPLE
1. WORK ON STREET A
ASSESSABLE FOOTAGE - 60 Fr.
2. WORK ON STREET R / AUV
ASSESSABLE FOOTAGE - 60/3 Fr. - 20 Fr
3. WORK ON BOTH STREETS
ASSESSABLE FOOTAGE - 60 + 20 Fr - 50 Fr
NMI
IF IMPROVEMENTS ARE COMPLETED ON ONLY ONE SIDE OF THE
LOT. THE ASSESSABLE FOOTAGE SHALL EQUAL THE FULL STREET
LENGTH ON THAT SIDE
Figure 6
Page 5
PAYMENT OF ASSESSMENTS
The owner of any property so assessed may, at any time prior to certification, make payments (partial
or full) towards the balance owed.
The owner may, at any time after certification, pay the whole of the assessment, with interest accrued
to the date of payment, except that no interest may be charged if the entire assessment is paid by
November 3o`h of the assessment year.
The owner may, at any time thereafter, pay to the Finance Director the entire amount of the
assessment remaining unpaid, with interest accrued to December of the year in which such payment
is made. Such payment must be made before November 14`h or interest will be charged through
December 31" of the succeeding year.
SENIOR CITIZEN DEFERRAL OF SPECIAL ASSESSMENTS
ESTABLISHMENT OF DEFERRAL: Pursuant to Minn. Stat. 435.193 et seq., special assessment
installment payments payable by senior citizens and persons retired by virtue of permanent and total
disability are deferred if payment of such installments would create hardship.
CRITERIA: In determining whether or not a person is eligible for deferral of special assessment
installment payments, the following criteria are established:
SENIOR CITIZENS:
Senior citizens special assessment deferral applies to qualifying special assessments against all
properties classified as "homestead" pursuant to Minn. Stat. Chapter 273, where one or more of
the owners of such property is 65 years of age or older and it would create a hardship for the
owner or owners of the property to pay the special assessment installments as they become due.
The senior citizen shall be required to prove eligibility for this special assessment deferral on the
basis of age.
PERSONS RETRIED BY VIRTUE OF PERMANENT AND TOTAL DISABILITY:
The special assessment hardship deferral for persons retired by virtue of permanent and total
disability applies to special assessments levied after the date of the adoption of this resolution.
This special assessment hardship deferral applies to qualifying special assessments against all
properties classified as "homestead" pursuant to Minn. Stat. Chapter 273 where one or more of
the owners of the property is retired by virtue of permanent or total disability and it would create
a hardship for the owner or owners of the property to pay the special assessment installments as
they become due.
It shall be presumed that a property owner is retired from employment by virtue of a permanent
and total disability if:
Page 6
a) The individual has in fact retired from employment; and
b) The individual suffers from the total and permanent loss of the sight of both eyes, the loss of
both arms at the shoulder, the loss of both legs so close to the hips that no effective artificial
members can be used, completed and permanent paralysis, total and permanent loss of mental
faculties, or any other injury which totally incapacitates the person from working at an
occupation which brings an income.
The owner of the properties must provide proof and verify under oath that he or she qualifies
under the criteria defining a permanent and total disability. In cases where exceptional and
unusual circumstances exist, the City Council may determine that a permanent and total disability
exists despite the fact that the definitional requirement of Section 2, B(3) are not met; such cases
shall be decided by the Council on a case -by -case basis.
HARDSHIP: It shall be presumed that a hardship exists if.
a) The annual assessment installment exceeds one (1) percent of the previous year's total
adjusted gross incomes, for Federal Income Tax purposes, for all owners of the property; in
no event shall "total adjusted gross income" include social security benefits, railroad
retirement benefits, retirement benefits attributable to employee contributions, disability
benefits, personal injury awards, or worker's compensation payments.
b) All live owners of the property verify, under oath, that they meet the criteria for establishing
a hardship by completing an application provided by the City or the County.
In cases where exceptional and unusual circumstances exist, the City Council may determine that
a hardship exists despite the fact that the minimum income requirements of the Hardship Section
are not met; such cases shall be decided by the Council on a case -by -cases basis.
INTEREST: Interest shall be charged on any assessment deferred pursuant to this document at a rate
equal to the rate charged on other assessments for the particular public improvement project the
assessment is financing.
TERMINATION OF DEFERMENT: The option to defer the payment of special assessments
pursuant to this document shall terminate and all installment amounts previously deferred, and
applicable interest, shall become due upon the occurrence of any of the following events:
a) The request of the property owner.
b) The death of the property owner who qualifies for the deferral, providing the surviving owner
is otherwise not eligible for the deferral.
c) The sale, transfer, or subdivision of the property or any part thereof.
d) The loss of homestead status of the property.
e) The City determines that a hardship no longer exists.
Page 7