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CC PACKET 10272009
CITY OF ST. ANTHONY VILLAGE CITY COUNCIL MEETING AGENDA October 2712009 7:00 p.m. Call to Order. Pledge of Allegiance. Roll Call. Consideration,. Discussion,, and Possible Action on All of the following items: I. Approval of the October 27, 2009, City Council Meeting Agenda. (action requested.) 1L Proclamations and Recognitions. A. Presentation of Recognition Plaque to Joel Stromgren, Planning Commission Chair. III. Consent Agenda. These items ran considend routine acrd will be enacted Gy one motion. There nail be no sepenate discussion of there items unless u CoundAvember or dtiten so regnesls, in whiels eaent !lx item will he rrmot?d from the Consent Agenda rant pkleed elsemlxn on the agenda. A. Approval of October 13, 2009, Council Meeting Minutes. (pp. 1 — 8) B. Licenses and. Permits. (p. 9) C. Claims. (pp. 10 — 12) D. Resolution 09-079; Accepting $9,753.75 from Hennepin County as their Portion of the Water Re -Use Project as reflected in the Cost Share Agreement. (pp. 13 — 14) IV. Public Hearing. V. Reports from Commission and Staff. A. Presentation from Mike Freeman, Hennepin County Attorney. VI. General Business of Council. A. Resolution 09-080; Call for Sale of Bond for Refinancing. Stacie Kvilvang, Ehlers & Associates, presenting. (pp. 15 -- 33) B. City Engineer's Update. Todd Hubmer, WSB & Associates, presenting. (pp. 34 — 39) C. Ordinance 09-006 — Amending Water Rates in Section 33 of the St. Anthony City Code. (first rending) (pp. 40 — 60) D. Ordinance 09-007 — Amending Sewer Rates in Section 33 of the St. Anthony City Code. {first leading) (pp. 61— 73) VII. Reports from City Manager and Council members. VIII. Community Forum. Individuals may addiess the Gy Courrdl about nay ilem not included on the .regular agenda. Speakers are requested to come to the podium, sign !heir name and address on the form at Phe podium, stale llmir name and address for the Clerk's record, and limit their remarks to fate minutes. Generally, lbe City Comail will not take ficial action on items discussed at this line, but may typically refer the matter to stq(,tfor a fulure report or dbra the mailer to be scheduled on an upcoming agenda. IX. Information and Announcements. X. Adjournment. Our Mission is to be a progressive and livable community, a walkable village, which is safe and secure. ZACouncil Meetings12009190272009\agenda.doc 1 1 CITY OF ST. ANTHONY 2 CITY COUNCIL REGULAR MEETING MINUTES 3 OCTOBER 13, 2009 4 5 CALL TO ORDER. 6 7 Mayor Faust called the meeting to order at 7:00 p.m. 8 9 PLEDGE, OF ALLEGIANCE. 10 11 Mayor Faust invited the Council and audience to join him in the Pledge of Allegiance. 12 13 ROLL CALL. 14 15 Present: Mayor Faust; Councilmembers Gray, Roth, Stille, and Thuesen 16 Absent: None 17 Also Present: City Manager Mike Mornson, Finance Director Roger Larson, and Public Works 18 Director Jay Hartman. 19 20 21 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING 22 ITEMS. 23 24 I. APPROVAL OF OCTOBER 13, 2009 CITY COUNCIL MEETING AGENDA. 25 26 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to approve the City 27 Council Meeting Agenda of October 13, 2009. 28 29 Motion carried unanimously. 30 31 Il. PROCLAMATIONS AND RECOGNITIONS. 32 33 None. 34 35 II1. CONSENT AGENDA. 36 37 A. Consider September 22, 2009 Council meeting minutes 38 B. Consider licenses and permits. 39 C. Consider payment of claims 40 D. Resolution 09-076; Accepting the Resignation of Planning Commissioner Joel 41 Strom en. 42 E. Resolution 09-077; Appointing Pat Niccum to the Planning Commission 43 F. Resolution 09-078; Approving Northwest Youth and Family Services Contract 44 45 Motion by Councilmember Stille, seconded by Councilmember Roth, to approve the Consent 46 Agenda items. 47 48 Motion carried unanimously. 49 City Council Regular Meeting Minutes October 13, 2009 Page 2 IV. PUBLIC HEARING. 3 None. 4 5 V. REPORTS FROM COMMISSION AND STAFF. 6 7 None. 9 VI. GENERAL BUSINESS OF COUNCIL. 10 11 A. Update on Tiered Water Rates 12 13 City Manager Monson reported that Minnesota Statutes, Section 103G.291 was amended to 14 include a requirement for public water suppliers serving more than 1,000 people to adopt a water 15 rate structure that encourages conservation. To comply with the law, effective January 1, 2010, 16 cities must implement a tiered system of water rates that charges a higher rate per unit as water 17 usage increases. The conservation rates are for all user groups including residential, multi -family 18 and commercial users of water. This is the fourth City Council meeting on this subject. Staff was 19 directed to contact the DNR to request a one-year extension. The DNR has denied the request 20 indicating the law does not give the DNR the authority to grant extensions. City Manager 21 Morrison indicated Council will be asked to provide direction on the following: 22 ■ Base Rate (staff recommendation to leave the base rate at $2.60 per 1,000 gallons). 23 ■ Percentage split between tiers 24 z Amend Ordinance 33.036 to include Tiered Water Rates (three readings required). 25 26 Finance Director Larson and City Manager Mornson provided a PowerPoint presentation on the 27 proposed City of St. Anthony Tiered Water Rates. They provided the following information in 28 response to questions of the City Council. 29 30 Based on staff's discussions with the DNR, the DNR will accept the rate structure being 31 considered by St. Anthony. The DNR would like a high differential between the tiers, but there is 32 no penalty if the City does not implement the DNR recommendation. There would be a penalty if 33 the City does not implement a tiered rate system. An example of this would be denial of DNR 34 permits. 35 In regards to the high percentage of commercial users included in Tier I, a large number of those 36 users are on a minimum bill because they do not have much activity. The City Engineer and 37 financial advisors have reviewed all of the tiers and determined that the proposed rate structure 38 appears to be equitable. 39 Rate structures being adopted by other cities varies. There is an approximate 50/50 split in the 40 cities that are increasing the base rate. Of the cities that have implemented a tiered rate structure, 41 all have indicated that a sensitivity analysis will be done to make sure that one group is not being 42 treated unfairly or receiving an extra benefit as a result of the new rate structure. 43 The intent of the DNR law is to change behavior by impacting the rates so that people will take 44 note and move to a conservation mode when they can apply it. The result of the rate structure City Council Regular Meeting Minutes October 13, 2009 Page 3 should be to penalize residential water use outside of the home, such as washing cars, lawn sprinkling, etc. 4 Councilmember Stille commented that the discussion of implementing a tiered water rate is 5 already affecting some of the residents. He was contacted by a resident that is a similar user to 6 him, and appears to be using about 75% more water than he. As they flush out some of these 7 issues people will likely fix leaks, etc. He suggested publishing the average water use of a typical 8 family of four for residents to note. 9 10 Councilmember Thuesen commented that implementing a tiered water rate structure will likely 11 grab the attention of the consumers and require them to think about how much water they use. 12 13 Councilmember Roth questioned if a rate increase would have been necessary regardless of the 14 law enacted by the DNR in order to generate additional revenue to cover expenses. Finance 15 Director Larson replied that a rate increase would have been very minimal at this time. 16 17 Councilmember Gray stressed that the intent of the tiered rate structure is not to raise revenue. 18 The rates that are collected are to cover the expenses associated with providing water and 19 necessary capital improvements. 20 21 Mr. Dennis Cavanaugh, 2919 St. Anthony Boulevard, addressed the City Council and stated the 22 City Council has made an environmental statement about how they feel about water with the 23 water reuse facility. This tiered pricing slides right into a continuing theme the Council is 24 developing. Mr. Cavanaugh shared information about a leak in his pool of approximately 200 25 gallons per day. The estimate to fix the leak was about $1,000, while the cost to him for the leak 26 was about $15 per month. He noted with the DNR proposed rate structure his last quarter's water 27 bill would have increased $225. This is the type of impact that will address water conservation. 28 Mr. Cavanaugh outlined the following three options he sees before the Council: 1) Do nothing; 29 2) Implement the options being proposed which really do not get the attention; 3) Implement a 30 broad water conservation ordinance. 31 32 Mr. Cavanaugh provided information on the following recommendations to address water 33 conservation in the City: 1) Establish a goal, such as reducing water consumption by 20% in five 34 years; 2) Water softening done by the City (Mr. Cavanaugh shared expenses and cost savings 35 associated with this recommendation); 3) Incentive program for users of city water to change out 36 water softeners; 4) Incentive program to change out toilets and shower heads; 5) Requirement for 37 sprinkler systems to be intelligent. 38 39 Mr. Cavanaugh also suggested that the City move to an on-line monthly water billing which 40 would provide feedback on water use on a more current basis. 41 42 Mr. Ken Brown, 3422 Silver Lane, addressed the City Council and stated the one thing that 43 never seems to come up with this topic is how much revenue is projected by the new tier rates. 44 Sewer rates will need to be raised to cover the deficit. He questioned why water and sewer are 45 not combined, with the additional revenue that may be raised by the water rate increase going to 46 offset the sewer rate deficit. He suggested including the tier on water bills, with a note on the 3 City Council Regular Meeting Minutes October 13, 2009 Page 4 1 savings that would be associated with using less water and dropping down a tier. He stated his 2 position that there is support for clean water and water conservation, which is shown by the tax 3 increase voted into effect a few years ago. 4 5 Mayor Faust thanked the public for the comments. He commented that the City has taken a 6 conservative, measured approach with this issue. They will be sensitive to benchmarking this in 7 the future. The ultimate goal is to conserve water. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Councilmember Roth suggested that in order to make more of an impact, Option 2 be amended with the following differential between tiers: 10% / 15% / 25%. Councilmember Gray noted approximately 50% of the households are in Tier I, and that there is no incentive for these individuals to reduce their water consumption. He stated his position that the focus should not be limited to the other 50% of users. Councilmember Stille indicated he would be supportive of the amendment proposed by Councilmember Roth. He pointed out that the rates will be revisited annually and can be adjusted in the future. He suggested publishing the citywide water consumption quarterly. Councilmember Thuesen stated his preference for Option 2, and indicated he would be agreeable of the amendment proposed by Councilmember Roth. In regard to the concern raised about Tier I by Councilmember Gray, there is likely some conservation occurring with this group simply because there is not a lot of use by this tier. He would not propose increasing this tier at this time, but it should likely be reviewed by future City Councils. Mayor Faust suggested implementing an additional tier by amending the tiers as follows: 0 — 7,500 Gallons Tier I 7,501 — 15,000 Gallons Tier II 15,001 — 22,500 Gallons Tier III 22,501 — 30,000 Gallons Tier IV Over 30,000 Gallons Tier V *Minimum Bill 7,500 Gallons Remain at $2.60 base rate Percentage split between tiers: 5% / 10% / 15% / 25% Council consensus was to direct staff to include the first reading of Ordinance 33.036 on the October 27, 2009 City Council meeting with the above rate structure as suggested by Mayor Faust. B. Update on Sewer Rates. City Manager Mornson reported that based on 2008 financial data, the City Auditor recommended a sewer rate increase. Operating revenues totaled $797,360 compared to rd 2 3 4 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 City Council Regular Meeting Minutes October 13, 2009 Page 5 expenditures of $810,920. The deficit of ($13,560) was offset by miscellaneous revenue such as late fees, interest earnings and sewer connection charges. City Manager Morrison and Finance Director Larson provided a PowerPoint presentation on the proposed City of St. Anthony Sewer Rate Increase, including the following information: 2008 Sewer Revenues & Expenditures ■ 2009 Projected Sewer Operating Costs ■ Charges for 2010 Sanitary Waste Disposal Increased by the Metropolitan Council 2009/2010 Projected Sewer Operating Costs ■ Rate Needed to Balance Budget: o Recommended rate of $3.50 per 1,000 gallons o Current rate = $3.30 per 1,000 gallons ■ Residential Impact Impact of Future Increases City Manager Mornson requested direction from Council on amending Ordinance 33.108 by increasing the current sewer rate to $3.50 per 1,000 gallons. He advised staff recommends that discussion on providing funding for future infrastructure improvements by increasing the sewer rate to more than $3.50 per 1,000 gallons be deferred to the 2010 goal setting. Councilmember Thuesen expressed concern that cities seem to be penalized for the Metropolitan Council's inability to anticipate the loss in SAC Credits. Mayor Faust commented that the growth in the past likely subsidized a lower rate than should have been charged. There was additional discussion on the role and authority of the Metropolitan Council. Councilmember Roth questioned what funds will be used to cover the 2009 shortfall of $45,990. Finance Director Larson replied that there is an adequate balance in the Water and Sewer Fund to cover the shortfall. Councilmember Roth inquired whether there should be consideration of a rate increase higher than the $3.50 recommendation. Finance Director Larson explained that this fund has been looked at as a break even fund. This should be achieved with the rate of $3.50 per 1,000 gallons. Councilmember Roth asked whether it would be appropriate to repay the Water and Sewer Fund for the $60,000 used to cover the 2008 and 2009 deficits. Finance Director Larson replied that the fund balance is approximately $200,000. Periodically the City Engineer has looked to this fund as a funding source for projects. Mayor Faust noted that previous surpluses in the fund were used to cover the deficit. Councilmember Gray suggested future discussions about designating the $200,000 fund balance for capital improvements. There should also be discussions on the additional revenue that may occur from the tiered water rate structure that will be implemented. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 City Council Regular Meeting Minutes October 13, 2009 Page 6 Councilmember Stille noted this would involve Council discussion from a policy perspective relating to capital improvements and the appropriate fund balance to maintain from a contingency perspective. Mayor Faust stated his position that the current $200,000 fund balance should remain as a contingency for unexpected repairs. Council consensus was to direct staff to proceed with the ordinance amendment process for Ordinance 33.108 at the recommended rate of $3.50 per 1,000 gallons. C. Quarterly Goals Update. City Manager Mornson provided the quarterly update on the City Council Goals as outlined in the October 27, 2009 memorandum to the Mayor and City Council: 1) Environmental Stewardship 2) Improve and Maintain Infrastructure 3) Technology Advances 4) Maintain / Improve Housing Stock 5) Senior Transitions Other Councilmember Stille inquired about the status of exploring the feasibility of a community garden at the previous bowling alley site. Public Works Director Jay Hartman indicated that the concept is being considered. City Manager Mornson noted the City of Brooklyn Park has community gardens and the City of Albert Lea has over 40 community gardens. Councilmember Stille requested staff to look into the feasibility of reinstalling the cross walk sign that was removed from Silver Lake Road. Mayor Faust suggested the possibility of an illuminated "Yield to Pedestrians" sign. Councilmember Stille noted there had also been discussion in the past about including LED lights on certain stop signs that are not read very well, particularly the one by the school that is often missed due to glare from the sun. VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS. City Manager Morrison reported on the following: • St. Anthony Library will have extended hours on Saturdays starting Saturday, October 31, 2009 from 10 a.m. — 5 a.m. ■ October 5, 2009 meeting with Ramsey County Administrator's staff regarding levies and valuations — Council has been provided with an assessment report. ■ October 6, 2009 meeting with garbage haulers. • Refunding of three bond issues: Stacie Kvilvang of Ehlers and Associates will be present at the October 27, 2009 City Council meeting. The bond sale will be included on the November 24, 2009 meeting agenda if Council would like to proceed. ■ Emerald Park Grand Opening is scheduled for October 14, 2009 at 5:00 p.m. 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 City Council Regular Meeting Minutes October 13, 2009 Page 7 ■ November 20, 2009 deadline to submit applications to serve on the Planning and Park Commissions ■ 2010 Street Project Update Council members should inform staff if they are interested in attending the upcoming Middle Mississippi Water Management Organization Open House so that the meeting can be posted. ■ Police Department is holding three seminars tonight on sexual assault, computers and senior citizens. Councilmember Thuesen stated he recently had to take time off, as he has had his second brain surgery in 13 months. He feels good that will be able to attend the final City Council meetings to finish the job he was elected for. He will be receiving a series of treatments each month, but it should not interfere with his desire to finish out his term on the City Council. Councilmember Gray reported on this attendance at the National Association of Telecommunications Officers and Advisors (NATOA) conference in September as a representative of the Northern Suburban Communications Commission. He was very impressed with the tour he received of the facilities at Lafayette, Louisiana where there is fiber to the home. He was also able to talk with the Monticello City Manager. The City of Monticello was presented with an award for the communications network they are in the process of building. A video presentation on the fiber to home system in Lafayette, Louisiana will be prepared for the member cities to view. Councilmember Roth reported on his attendance at the St. Anthony/New Brighton Community Services Meeting on October 1, 2009. The 2009/2010 budget projected a deficit of $112,000. Over the past two months due to the direction of Wendy Webster and due to increased enrollment in the preschool program they are looking at a revised fund balance with a deficit of only $30,000. Councilmember Stille thanked Councilmember Thuesen for his dedication and pointed out that he arranged his treatment schedule in order to be able to attend the last three City Council meetings. Councilmember Stille reported on his attendance at the following events: ■ September 29, 2009 Joint City Council/School Board meeting. There was discussion on the possibility of funding that may be available through Hennepin County for improvements to the park shared by the City and the School District. It was also discussed that kindergarten enrollment is now made up of 75% resident students. This is a very strong indicator that a lot of new families are moving into the City. • October 10, 2009 Fire Department Open House and Pancake Breakfast. Mayor Faust reported on his attendance at the following events: September 26, 2009 Grand Reopening of Silverwood Park with Councilmembers Stille and Roth and the City Manager. Senator Klobouchar, former Senator Durenburger, and other dignitaries were present. The park is stunning and a great asset to the City. 7 City Council Regular Meeting Minutes October 13, 2009 Page 8 1 ■ September 28, 2009 final Fiscal Futures Policy Committee. The cities will be voting on 2 the policies in November. 3 ■ September 29, 2009 Quarterly Meeting with the School Board. Tours of the new facilities 4 are scheduled for October 21st and October 28`". Senior citizens can call Community 5 Services at 612-706-1166 to schedule a tour. 6 • October 8, 2009 meeting with the Community Services Director on a number of issues, 7 including the Senior Transitions Goal, which will be reenergized. 8 ■ October 10, 2009 Fire Department Open House. Emergency preparedness pamphlets 9 were distributed and are available for the public. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Mayor Faust stated he has been asked to serve on a Metro Area Planning Group. There will be meetings with representatives of the MPCA, Minneapolis, and the League of Minnesota Cities to determine if legislation can be drafted to require plans such as the Comprehensive Plan and the Watershed Plan to come due at the same time. VIII. COMMUNITY FORUM. Mayor Faust invited residents to come forward at this time and address the Council on items that are not on the regular agenda. Mr. Dennis Cavanaugh, 2919 St. Anthony Boulevard, addressed the City Council and thanked Councilmember Thuesen for his service. He stated his support of the library as an asset to the community and that it should not be closed when improvements are completed at the library located on Central Avenue. Mr. Cavanaugh stated his position for a single source garbage hauling system. IX. INFORMATION AND ANNOUNCEMENTS. Mayor Faust announced that the most recent Village Notes has come out. Copies are available at City Hall. He announced the 2009 Candidate Speak Out will air on Channel 15, Channel 16 and the School District's channel. He directed staff to include this information on the City website. X. ADJOURNMENT. Mayor Faust adjourned the meeting at 8:57 p.m. Respectfully submitted, Carol Hamer TimeSaver Off Site Secretarial, Inc. ATTEST: City Clerk Mayor S Saint Anthony Village DATE: October 27, 2009 Approved: TO: Mayor and Councilmembers FROM: License Clerk ITEM: License and Permits for Approval: General Contractors License: Holl Construction, Scandia, MN Heating & Air Conditioning License: Joel Smith Heating & Air Conditioning, Ham Lake, MN Rental License: Applicant: Jeff Barber Location: 4104 -- 4106 Silver Lake Rd US BANK ST. ANTHONY VILLAGE 10 CHECK REGISTER VENDOR # PAYEE CHECK# DATE AMOUNT 9486 AIRPORT TAXI & TOWN TAXI 10570 10/28/2009 $190.00 8621 ALLIANCE MECHANICAL 10571 10/28/2009 $664.00 9761 AMERICAN BOTTLING COMAPN 10572 10/28/2009 $200.00 8794 ARCTIC GLACIER INC. 10573 10/28/2009 $247.14 4687 ASPEN WASTE SYSTEMS INC 10574 10/28/2009 $62.12 9393 AUTOMATIC SYSTEMS CO 10575 10/28/2009 $4,375.73 320 BEISSWENGER'S 10576 10/28/2009 $105.07 4293 BELLBOY CORP. 10577 10/28/2009 $12,922.94 8555 BIFFS, INC. 10578 10/28/2009 $310.00 9648 BOUND TREE MEDICAL LLC 10579 10/28/2009 $456.27 4662 BOURGET IMPORTS 10580 10/28/2009 $652.00 7168 BOYER TRUCKS, INC. 10581 10/28/2009 $337.98 7253 BRAKE & EQUIPMENT WAREHO 10582 10/28/2009 $62.98 9759 C & H SPORT SURFACES, IN 10583 10/28/2009 $1,350.00 4231 CAPITOL BEVERAGE SALES 10584 10/28/2009 $9,390.35 9100 CAT & FIDDLE BEVERAGE 10585 10/28/2009 $2,302.00 610 CATCO 10586 10/28/2009 $7.75 2380 CENTERPOINT ENERGY 10587 10/28/2009 $686.95 4080 CHISAGO LAKES DISTRIBUTI 10588 10/28/2009 $5,182.15 9378 CITY OF FALCON HEIGHTS 10589 10/28/2009 $2,876.01 9379 CITY OF LAUDERDALE 10590 10/28/2009 $1,517.76 9056 CITY OF ROSEVILLE 10591 10/28/2009 $3,341.92 8814 CITY WIDE WINDOW SERVICE 10592 10/28/2009 $171.00 4095 COCA COLA BOTTLING COMPA 10593 10/28/2009 $1,346.15 4101 COMMERS CONDITIONED WATE 10594 10/28/2009 $105.65 8408 COMMISSIONER OF TRANSPOR 10595 10/28/2009 $264.53 8602 CROWN TROPHY 10596 10/28/2009 $106.34 9224 CUMMINS NPOWER, LLC 10597 10/28/2009 $11.03 4127 DANIMAL DISTRIBUTING INC 10598 10/28/2009 $720.00 4110 DICKSON ELECTRIC 10599 10/28/2009 $319.00 9754 DONOVAN CONSTRUCTION 10600 10/28/2009 $1,120.75 9034 EBERT CONSTRUCTION 10601 10/28/2009 $209,587.38 8698 EHLERS & ASSOCIATES, INC 10602 10/28/2009 $5,000.00 7394 ESS BROTHERS & SONS INC. 10603 10/28/2009 $203.06 8697 EXTREME BEVERAGE 10604 10/28/2009 $484.00 9395 FACTORY MOTOR PARTS CO 10605 10/28/2009 $28.28 1030 G & K SERVICES INC 10606 10/28/2009 $703.55 4172 GRAPE BEGINNINGS, INC. 10607 10/28/2009 $2,379.50 1410 HARMON AUTOGLASS 10608 10/28/2009 $229.97 1420 HAWKINS, INC 10609 10/28/2009 $1,346.55 8944 HENN CNTY INFO TECH DEPT 10610 10/28/2009 $10,850.46 1505 HENNEPIN COUNTY SHERIFF 10611 10/28/2009 $1,370.43 .00266 HERRARA/ARTURO 10612 10/28/2009 $150.00 4207 HOHENSTEIN'S, INC 10613 10/28/2009 $2,050.02 8252 HOME DEPOT CREDIT SERVIC 10614 10/28/2009 $278.36 9225 HSBC BUSINESS SOLUTIONS 10615 10/28/2009 $262.53 9346 INFRASTRUCTURE TECHNOLOG 10616 10/28/2009 $3,292.59 9760 INNOCORP, LTD 10617 10/28/2009 $315.50 8658 INSTRUMENTAL RESEARCH, 1 10618 10/28/2009 $85.50 US BANK ST. ANTHONY VILLAGE CHECK REGISTER VENDOR # PAYEE CHECK# DATE AMOUNT 4125 JJ TAYLOR DISTRIBUTING 10619 10/28/2009 $30,937.66 4220 JOHNSON BROTHERS LIQUOR 10620 10/28/2009 $66,354.78 9733 KUSSKE CONSTRUCTION, INC 10621 10/28/2009 $56,331.75 9755 L.T.G. POWER EQUIPMENT 10622 10/28/2009 $40.33 9351 LANGUAGE LINE SERVICES 10623 10/28/2009 $10.30 7143 LARSON/ROGER A 10624 10/28/2009 $148.50 8434 LEAGUE OF MINNESOTA CITI 10625 10/28/2009 $160.00 9729 LIFT BRIDGE BEER CO. 10626 10/28/2009 $260.00 2040 LILLIE SUBURBAN NEWSPAPE 10627 10/28/2009 $450.00 8229 LOFFLER BUSINESS SYSTEMS 10628 10/28/2009 $377.93 9114 M. AMUNDSON LLP 10629 10/28/2009 $3,480.88 2125 MALENICK/JOHN 10630 10/28/2009 $59.54 9459 MIDC ENTERPRISES 10631 10/28/2009 $137.40 2280 MIDWEST ASPHALT CORP 10632 10/28/2009 $25.00 9255 MIDWEST SIGN & SCREEN PR 10633 10/28/2009 $168.49 4277 MIDWEST TAPE & RIBBON IN 10634 10/28/2009 $850.00 7340 MINNEAPOLIS FINANCE DEPT 10635 10/28/2009 $320.00 8269 MINNESOTA SHREDDING LLC 10636 10/28/2009 $57.00 9756 MINNESOTA/WISCONSIN PLAY 10637 10/28/2009 $456.36 4299 MPLS. OXYGEN CO. 10638 10/28/2009 $10.26 2395 MTI DISTRIBUTING, INC 10639 10/28/2009 $270.88 5232 MURPHY'S SERVICE CENTER 10640 10/28/2009 $5.14 7370 MYERS TIRE SUPPLY COMPAN 10641 10/28/2009 $28.39 8996 NEEDHAM DISTRIBUTING CO 10642 10/28/2009 $638.15 9475 NEOPOST LEASING 10643 10/28/2009 $149.61 8883 NEW FRANCE WINE COMPANY 10644 10/28/2009 $2,069.00 8326 NEWMAN TRAFFIC SIGNS 10645 10/28/2009 $617.03 9266 NORTHERN WATER WORKS SUP 10646 10/28/2009 $34.69 45 OFFICE DEPOT 10647 10/28/2009 $349.49 7226 OLSON'S PLUMBING 10648 10/28/2009 $1,650.00 9275 PAT KERNS WINE MERCHANTS 10649 10/28/2009 $303.01 4354 PAUSTIS & SONS 10650 10/28/2009 $1,247.87 8594 PETERBILT NORTH 10651 10/28/2009 $64.94 4360 PHILLIPS WINE & SPIRITS 10652 10/28/2009 $82,048.74 9499 PLAYPOWER LT FARMINGTON, 10653 10/28/2009 $126.11 4385 QUALITY WINE CO 10654 10/28/2009 $39,324.78 4492 QWEST 10655 10/28/2009 $636.30 9550 RAMSEY COUNTY 10656 10/28/2009 $4,429.81 7376 RDO EQUIPMENT COMPANY 10657 10/28/2009 $432.65 9757 READY WATT ELECTRIC 10658 10/28/2009 $878.00 9119 RECHECK 10659 10/28/2009 $15.00 9680 SENSUS METERING SYSTEMS 10660 10/28/2009 $751.41 9428 SHANK CONSTRUCTORS, INC. 10661 10/28/2009 $332.50 8199 SIGNATURE CONCEPTS, INC. 10662 10/28/2009 $443.53 9127 SIMPLEXGRINNELL 10663 10/28/2009 $384.00 8725 SITARZ/MARK 10664 10/28/2009 $127.05 3315 SL-SERCO 10665 10/28/2009 $1,000.00 8983 SOULO DESIGN, INC 10666 10/28/2009 $170.00 9259 SPRINT 10667 10/28/2009 $359.91 8872 SUCIU/BARB 10668 10/28/2009 $191.30 4780 SURLY BREWING CO 10669 10/28/2009 $1,465.00 11 US BANK ST. ANTHONY VILLAGE 12 CHECK REGISTER VENDOR # PAYEE CHECK# DATE AMOUNT 3260 T A SCHIFSKY & SONS 10670 10/28/2009 $3,958.21 8920 T.C. FIELD & COMPANY 10671 10/28/2009 $2,125.00 8824 TRI -COUNTY BEVERAGE, INC 10672 10/28/2009 $205.00 9732 U OF M PLANT DISEASE 10673 10/28/2009 $82.00 9590 U.S. BANK 10674 10/28/2009 $459.41 8010 UNIFORMS UNLIMITED 10675 10/28/2009 $1,418.04 8336 UNITED ELECTRIC COMPANY 10676 10/28/2009 $81.28 8561 UNITED RENTALS NORTHWEST 10677 10/28/2009 $23.66 9166 UNIVERSITY OF MINNESOTA 10678 10/28/2009 $668.00 4490 VAL-PAK OF MINNESOTA 10679 10/28/2009 $740.00 8227 VERIZON WIRELESS 10680 10128/2009 $160.92 3700 VIKING INDUSTRIAL CENTER 10681 10/28/2009 $51.47 9126 VINO SOURCE 10682 10/28/2009 $792.00 4451 VINOCOPIA 10683 10/28/2009 $257.00 9440 W. L. HALL CO. 10684 10/28/2009 $580.00 9702 W.D. LARSON COMPANIES LT 10685 10/28/2009 $9.53 9366 WAL-MART BUSINESS CENTER 10686 10/28/2009 $121.80 9497 WATER CONSERVATION SERVI 10687 10/28/2009 $215.00 9758 WEB SOFT, INC. 10688 10/28/2009 $735.49 8316 WINE COMPANY/THE 10689 10/28/2009 $3,703.10 8310 WINE MERCHANTS INC 10690 10/28/2009 $2,130.42 4175 WIRTZ BEVERAGE MINNESOTA 10691 10/28/2009 $31,691.41 9734 WIRTZ BEVERAGE MINNESOTA 10692 10/28/2009 $15,145.16 4499 WORLD CLASS WINES, INC. 10693 10/28/2009 $1,872.90 8273 WSB & ASSOCIATES, INC. 10694 10/28/2009 $62,294.20 2680 XCEL ENERGY 10695 10/28/2009 $15,403.24 9145 XPRESS GRAPHIX SIGN SUPP 10696 10/28/2009 $211.61 9706 YAHOO 10697 10/28/2009 $20.44 TOTAL $736,360.01 13 Ka Report Date: Meeting Date October 27, 2009 October 27, 2009 Agenda Section: III. D. ITEM DESCRIPTION: Resolution 09-079; Accepting Hennepin County's Share of the Water Re -Use Project in the Amount of $9,735.75 as stated in the Cost Share Agreement. MANAGER'S REVIEW: The City of St. Anthony's Water Re -Use Project was constructed during the reconstruction of Silver Lake Road. As per the Cost Share Agreement, Hennepin County was to pay $9,735.75. The City of St. Anthony received $9,735.75 from Hennepin County for their share of the Water Re -Use project. Michael Mornson City Manager Attachments: Resolution 09-079; Accepting Hennepin County's Share of the Water Re -Use Project in the Amount of $9,735.75 as stated in the Cost Share Agreement. Z,1Council Mectings120091102720091staff he water re use.doc - 1 - CITY OF ST. ANTHONY VILLAGE RESOLUTION 09-079 ACCEPTING HENNEPIN COUNTY'S SHARE OF THE WATER RE -USE PROJECT IN THE AMOUNT OF $9,735.75 AS STATED IN THE COST SHARE AGREEMENT WHEREAS, the City of St. Anthony, and Hennepin County reconstructed Silver Lake Road; and WHEREAS, during the reconstruction of Silver Lake, City of St. Anthony constructed the Water Re -Use ponds; and WHEREAS, Hennepin County agreed to pay $9,735.75 in costs associated with the Water Re -Use Project. NOW, THEREFORE, BE PT RESOLVED, that the City Council of the City of St. Anthony Village hereby accepts Hennepin County's Share of the Water Re -Use Project in the Amount of $9,735.75 as stated in the Cost Share Agreement. Adopted this 27t1, day of October, 2009. Mayor ATTEST: City Clerk Review for Administration: City Manager ZACounciI Meetings\2009\10272009\resdonation he water re use.doc 14 E H LE RS LEADERS IN PUBLIC FINANCE Debt Issuance Service October 27, 2000 Pre -Sale Report for $1,790,409 General Obligation Refunding Bands, Series 2009 City of St. Anthony, Minnesota Minnesota Offices also in Wisconsin and Illinois wvvw,ehlers-inc.com phone 651-697-6500 3060 Centre Pointe Drive fax 651-697-6555 Roseville, MN 55113 -1122 Debt Issuance Servicus ----._...... _-.._-.._ Details of Proposed debt Proposed Issue: $1,700,000 General Obligation Refunding Bonds, Series 2009B Purpose: The 2001A GO Abatement Bonds are a current refunding callable on February 1, 2009. The Bonds were originally issued in the amount of $625,000 with remaining rates ranging from 4.25% to 4.8%. The new principal amount will be $320,000 with the same term (ending on February 1, 2016) and the new rates should be 1.15% to 2.75%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 469 and 475. The 2001B GO Improvement Bonds are a current refunding callable on February 1, 2010. The Bonds were originally issued in the amount of $1,160,000 with remaining rates ranging from 4.30% to 5.0%. The Bonds will be reduced by $58,000 from cash on hand as required by IRS regulations. The new principal amount will be $540,000 with the same term (ending on February 1, 2017) and the new rates should be 1.15% to 3.00%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 475. The 2002A GO Improvement Bonds are a current refunding callable on February 1, 2010. The Bonds were originally issued in the amount of $1,500,000 with remaining rates ranging from 4.30% to 5.0%. The Bonds will be reduced by $57,000 from cash on hand as required by IRS regulations. The new principal amount will be $840,000 with the same term (ending on February 1, 2018) and the new rates should be 1.15% to 3.25%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 475. Funding Source(s): These Bonds will be paid from the same source of payment originally pledged to them (tax abatement for the 2001A and special assessments and tax levy for the 2001B and 2002A). Arbitrage Monitoring: With increasing short-term investment rates, IRS rules regarding the amount of interest that the City may earn on bond proceeds must be taken into consideration. The City will need to keep its debt service funds within IRS parameters to avoid penalties for carrying too high of a balance during the life of the issue. Rating: It is anticipated that Standard & Poor's will rate the Bonds a "AA'. Bank Qualification: Because the City is issuing less than $30,000,000 in the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result. in lower interest rates. Presale Report October 8, 2009 Page 2 —EI-E]Debt Issuance Service Term/Call Feature: The 2009B Bonds are being issued for an 8 -year period. Interest is payable each six months. Principal on the 2009B Bonds will be due on February 1 in the years 2011 through 2018. The Bonds will be non - callable. Discussion Issues: Based on current coupon rates, the estimated future savings as a result of this current refunding of the Bonds is approximately $252,000 which is a $220,000 (5.46%) Net Present Value after all fees and expenses. Presale Report 2001A Abatement Bonds - $21,175 or 4.566% Net Present Value after all fees and expenses (annual savings of approximately $3,500). 2001B GO Improvement Bonds - $107,000 or 5.48% Net Present Value after all fees and expenses (annual savings of approximately $15,000). 2002A GO Improvement Bonds - $124,100 or 5.755% Net Present Value after all fees and expenses (annual savings of approximately $16,000). The projected interest rates are based on current market rates. Rates higher or lower will change the actual savings. GFOA recommends issuers have at least a 3% Net Present Value Savings. October 8, 2009 Page 3 Debt Issuance Servic AN - Proposed Debt Issuance Schedule Pre -Sale Review by Council: Distribute Official Statement: Conference with Rating Agency: City Council Meeting to Award Sale of the Bonds: Estimated Closing Date: October 27, 2009 November 12, 2009 Week of November 16, 2009 November 24, 2009 December 16, 2009 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts: Financial Advisors: Stacie Kvilvang Jonathan North (651) 697-8506 (651) 697-8545 Bond Analysts: Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Bond Sale Coordinator: Alicia Aulwes (651)697-8523 The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. Presale Report October 8, 2009 Page 4 St Anthony, MN Issue Summary - Proposed Current Refunding of G.O. Improvement Bonds, Series 200113 & 2002A and $625,000 G.O. Abatement Bonds, Series 2001A Table of Contents Report ISSUE SUMMARY Total Issue Sources And Uses 1 Debt Service Schedule 2 Debt Service Com afison 3 Current Refunding Escrow 4 02A $1.5M Prior Original Debt Service 5 Debt Service Schedule 6 Debt Service Comparison 41 B $1.16M _ - Prior Original Debt Service _- 8 Debt Service Schedule 9 Debt Service Comparison 14 41A $625K Prior Original Debt Service 1 I Debt Service Schedule 12 Debt Service Comparison 13 09 Cur refunding of Serie I Issue Summary 1 1011912009 1 4:17 PM Ehlers •Associates, Leaders in Public Finance St Anthony, MN Issue Summary - Proposed Current Refunding of G.O. Improvement Bonds, Series 2001B & 2002A and $625,000 G.O. Abatement Bonds, Series 200IA Total Issue Sources And Uses Bated 11/19/20091 Delivered 1111912009 02A $1.5M 0113$1.16M 01A $625K Issue Summary Sources Of Funds Paz Amount of Bonds $840,000.00 $540,000.00 $320,000.00 $1,700,000.00 Transfers from Prior Issue Debt Service Funds 57,000.00 58,000.00 - 115,000.00 Total Sources $897,000.00 $598,000.00 $320,000.00 $1,815,000.00 Uses Of Funds Total Underwriter's Discount (1.000%) 8,400-00 5400 00 3,200 00 17,000 00 Costs of Issuance 13,835.29 8,894.12 5,270.59 28,000.00 De sit to Current Refunding Fund 869 911.83 584,940-72 314,968 08 1,769,820 63 Rounding Amount 4,852.88 1,234.84 3,438.67 179.37 Total Uses $897,000.00 $598,000.00 $320,00.00 $1,815,000.00 09 Cur refunding of Serie I Issue Summary 1 14!19/2009 l 4:17 PM Ehlers r •Associates, Leaders St Anthony,MN Issue Summary - Proposed Current Refunding of G.O. Improvement Bonds, Series 2001B & 2002A and $625,000 G.O. Abatement Bonds, Series 2001A Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/1912009 - - 08/01/2010 - 26,178.25 26,178.25 - 02/01I2011 225,000.00 1.1500/a 18,698.75 243,698.75 269,877.00 08/01/2011 - 17,405.00 17,405.00 - 02101/2012 240,000.00 15500/0 17,405.00 257,405.00 274,810.00 08/01/2012 - - 15,545.00 15,545.00 - 02/01/2013 230,000.00 1.900% 15,545.00 245,545.00 261,090.00 08101/2013 - - 13,360.00 13,360.00 - 02/01/2014 240,000.00 2.250% 13,360.00 253,360.00 266,720.00 08/01/2014 - 10,660.00 10,660.00 - 02/01/2015 235,000.00 2.4500/1) 10,660.00 245,660.00 256,320.00 08/01/2015 - - 73781.25 7,781,25 - 02/01/2016 240,000.00 2.750% 73781.25 247,781.25 255,562.50 08/01/2016 - - 4,481.25 4,481.25 - 02/0I/2017 185,000.00 3.000% 4,481.25 189,481.25 193,962.50 08/01/2017 - - 1,706.25 1,706.25 - 02/01/2018 105,000.00 3.250% 1,706.25 106,706.25 108,412.50 Total $1,700,000.00 - $186,754.50 $1,886,754.50 - Yield Statistics Bond Year Dollars $7,445.00 Average Life 4.379 Years Average Coupon 2,5084553% Net Interest Cost (NIC) 2.7367965% True Interest Cost (TIG) 2.7406935% Bond Yield for Arbitrage Purposes 2.4948592% All Inclusive Cost (AIG) 3.1531956% IRS Farm 8038_ Net Interest Cost 2.5084553% Weighted Average Maturity 4.379 Years 09 Cur refunding of Serie I Issue Summary 1 1011912009 1 4:17 PM Ehlers & Associates, Leaders , St Anthony, MN Issue Summary - Proposed Current Refunding of G.O. Improvement Bonds, Series 2001B & 2002A and $625,000 G.O. Abatement Bonds, Series 2001A Debt Service Comparison Date Total Pfl Net New DIS Old Net DIS Savinas 02/01/2010 - - 02/01 /2011 269,877.00 269,877.00 02/0112012 274,810.00 274,810.00 02/01/2013 261,090.00 261,090.00 02/01/2014 _ _ 266,720.00 266,720.00 - 298,305.00 304,082.50 298,975.00 298,320.00 - 28,428.00 29,272.50 37,885.00 31,600.00 02/01/2015 256,320.00 256,320.00 02/01/2016 255,562.50 255,562.50 02/01/2017 193,962.50 193,962.50 02/01/2018 108,412.50 108,412.50 291,965.00 294,630.00 226,500.00 126,000.010 35,645.00 39,067.50 32,537.50 17,587.50 Total $1,886,754.50 $1,886,754.50 $2,138,777.50 $252,023.00 PV Analysis Summary (Net to Neth Gross PV Debt service Savings ....................• 219,981.09 Net PV Cashflow Savings @ 3.153%(AIC)............ 219,981.09 Transfers from Prior Issue Debt Service Fund...... _ (115,000.00) Contingency or Rounding Amount .................... 179.37 _ Net Present Value Benefit s $105,160.46 Net PV Benefit / $1,926,186.13 PV Refunded Debt Service 5.460% Net PV Benefit/ $1,770,000 Refunded Principal... 5.941% Net PV Benefit 1 $1,700,000 Refunding Principal.. 6.186% Refunding Bond Information_ Refunding Dated Date 11/19/2009 Refumiding Delimy Date 11/19/2009 09 Cur refunding of Serie i Issue Summary i 10/1912009 1 4:17 PM Ehlers * Associates, LeadersPublic St Anthon MN Issue Summary - Proposed Current Refunding of G.O. Improvement Bonds, Series 2001B & 2002A and $625,000 C.O. Abatement Bonds, Series 2001A Current Refunding Escrow Date Principal Rate Interest +Transfers Cash Receipts Disbursements Balance 11/19/2009 - - - 02/01/2010 1,654,819.00 0.050%q 167.73 115,011.64 .L63 - 1.63 1,769,998.37 1,770,000.00 - Total $1,654,819.00 - $167.73 $115,011.64 $1,770,000.00 $1,770,000.00 Investment Parameters Investment Model [PV, GIC, or Securities] Securities Default investment yield target Unrestricted Cost of Investments Purchased with Fund Transfers 115,000.00 Cash Deposit__ 1.63 Cost of Investments Purchased with Bond Proceeds Total Cost of Investments _ 1,654,819.00 $1,769,820.63 Target Cost of Investments at bond yield Actualj?ositive or (negative) arbitrage $1,646,801.83 (8,018.80) Yield to Receipt 0.0506831% Yield for Arbitrage Purposes 2.4948592% State and Local Goveffunent Series SLGS rates for 10/14/2009 69 Cur refunding of Sere I Issue Summary 1 10/19/2009 1 4:17 PM Ehlers & Associates, Inc. Leaders in Public St Anthony, MN 1,500,000 G.O. Improvement Bonds, Series 2002A Prior Original Debt Service Dabs Principal Coupon Interest Total P+I Fiscal Total 02/01/2010 - - - 08/O1/2010 - - 20,645.00 20,645.00 - 02/01/2011 95,000.00 4.300%0 20,645.00 115,645.00 136,290.00 08/01/2011 - - 18,602.50 18,602.50 - 02/01/2012 100 000.00 4.400% 18,602.50 118,602.50 137 205.00 08/01/2012 - - 16,402.50 16,402.50 - 02/01/2013 105,000.00 4.500% 16,402.50 121,402.50 137,805.00 08/01/2013 - 14,040.00 14,040.00 - 02/01/2014 105,000.00 4.600% 14,040.00 119,040.00 133,080.00 08/01/2014 - - 11,625.00 11,625.00 - 02/01/2015 110,000.00 S.000% 11,625.00 121,625.00 133,250.00 08/01/2015 - 8,875.00 8,875.00 - 02/01/2016 115,000.00 5.000% 81875.00 123,875.00 132,750.00 08/01/2016 - - 6,000.00 6,000.00 - 02/01/2017 120,000.00 5.000% 6,000.00 126,000.00 132,000.00 08/01/2017 - - 3,000.00 3,000.00 - 02/0l/2018 120,000.00 5.000% 3,000.00 123,000.00 126,000.00 Total 5870,000.00 - $198,380.00 $1,068,380.00 - Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation 11/19/2009 Average Life _ 4.878 Years Average Coupon _ 4.6743638% Weighted Averale MaWrily Tar Basis 4.878 Years Refundina Bond InforlmMon Refunding Dated Date 11/19/2009 Refunding Delivery Date 11/19/2009 Ser 02A $1.5M GO Imp Bds I SINGLE PURPOSE 110119/2009 4:17 PM Ehlers a Associates, Leadersg- St Anthony, MN Purpose One - $840,000 Proposed Current Refunding of $1,500,000 G.O. Improvement Bonds, Series 2002A Debt Service Schedule Date Principal COUP -on Interest Total P+1 Fiscal Total I I/ 19/2009 - - - 08/0112010 - 13,515.25 13,515.25 02/01/2011 100,000.00 1.150% 9,653.75 109,653.75 123,169.00 08/01/2011 - 9,078.75 9,078.75 - 02101/2012 105,000.00 1.550% 9,078.75 114,078.75 123,157.50 08/01/2012 - - 8,265.00 8,265.00 - 02101/2013 105,000.00 1.9000/0 8,265.00 113,265.00 121,530.00 08/01/2013 - - 7,267.50 7,267.50 - 02/01/2014 105,000.00 2.250% 7,267.50 112,267.50 119,535.00 08/01/2014 6,086.25 6,086.25 02/01/2015 105,000.00 2.450% 6,086.25 111,086.25 117,172.50 08/01/2015 - - 4,800.00 4,800.00 - 02/01/2016 105,000.00 2.750% 4,800.00 109,800.00 114,600.00 08/01/2016 - 3,356.25 3,356.25 - 02/01/2017 110,000.00 3.000% 3,356.25 113,356.25 116,712.50 08/01/2017 - - 1,706.25 1,706.25 - 02/01/2018 105,000.00 3.250% 1,706.25 106,706.25 108,412.50 Total $840,000.00 - $104,289.00 $944,289.00 - Yield Statistics Bond Year Dollars $3,978.00 Average Life _ 4.736 Years Average Coupon _ 2.6216440% Net Interest Cost (NIC} _ 2.83280540/a True Interest Cost (TIC) 2.8357660% Bond Yield for Arbitrage Purposes _ 2.4948592% All Inclusive Cost (AIC) 3.2203047% IRS Form 8038 Net Interest Cost 2.6216440% Weighted Average Maturity 4.736 Years 09 Cur refunding of Serie I 02A $1.W 1 10/1912009 1 4:17 PM Ehlers •Associates, Leaders Public •-• St Anthony, MN Purpose One - $840,000 Proposed Current Refunding of $1,500,000 G.O. Improvement Bonds, Series 2002A Debt Service Comparison Net New Date Total P+I D/S Old Net DIS Savings 02/01/2010 - - 02/01/2011 123,169.00 123,169.00 136,290.00 13,121.00 02/01/2012 123,157.50 123,157.50 137,205.00 14,047.50 02/01/2013 121,530.00 121,530.00 137,805.00 16,275.00 02/01/2014 119,535.00 119 535.00 133,080.00 13 545.00 02/01/2015 117,172.50 117,172.50 133,250.00 16,077.50 02/01/2016 114,600.00 114,600.00 132,750.00 18,150.00 02/01/2017 116,712.50 116,712.50 132,000.00 15,287.50 02/01/2018 108,412.50 108,412.50 126,000.00 17,587.50 Total 5944,289.00 $944,289.00 $1,068,380.00 $124,091.00 PV Analysis Summa Net to Net Gross PV Debt Service Savings ..................... 107,091.54 Net PV Cashfiow Savings @ 3.220%(AIC)............ 107,091.54 Transfers from Prior Issue Debt Service Fund...... (57,000.00) Contingency or Rounding Amount .................... 4,852.98 Net Present Value Benefit $54,944.42 Net PV Benefit 1$954,764.31 PV Refunded Debt Service _ 5.755% Net PV Benefit / $870,000 Refunded Principal... 6.315% Net PV Benefit / $840,000 Refunding Princi 1.. 6.541% Refunding Bond Information Refunding Dated Date 11/19/2009 Refunding Delivery Date 11/19/2009 09 Cur refunding of Serie 102A $1.5M i 10119/2009 1 4:17 PM Ehlers & Associates, Leaders ,r- St Anthony, MN $1,160,000 G.Q. Improvement Bonds, Series 2001 B Prior Original Debt Service Date Principal Coupon Interest Total P+I Fiscal Total 02/01/2010 -� 08/0112010 - - 13,835.00 13,835.00 - 02/01/2011 75,000.00 4.300% 13,835.00 88,835.00 102,670.00 08/01/2011 - - 12,222.50 12,222.50 - 02/01/2012 80,000.00 4.400% 12,222.50 92,222.50 104,445.00 08/0112012 - - 10,462.50 10,462.50 - 02/01/2013 80,000.00 4.600% 10,462.50 90,462.50 100,925.00 08/01/2013 - - 8,622.50 8,622.50 - 02/01/2014 85,000.00 4.700% 8,622.50 93,622.50 102,245.00 08/0112014 - - 6,625.00 6,625.00 - 02/0112015 85,000.00 5.000% 6,625.00 91,625.00 98,250.00 08/01/2015 - - 4,500.00 4,500.00 - 02/01/2016 90,000.00 5.000% 4,500.00 94,500.00 99,000.00 0810112016 - - 2,250.00 2,250.00 - 02/01/2017 90,000.00 5.000% 2,250.00 92,250.00 94,500.00 Total $585,000.00 - $117,035.00 $702,035.00 - Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation 11/19/2009 Average Life 4.320 Years Memo Couvon 4.6313811% Wei ted Average Maturity Par Basis 4.320 Years Refunding Bond Information Refunding Dated Date 11/19/2009 Refunding Delivery Date _ 11/19/2009 Ser 01B $1.16M G01mp Bds I SINGLE PURPOSE 11011912009 4:17 PM y ♦ Associates, Ehlers r Leadersr St Anthony, MN Purpose Two - $540,000 Proposed Current Refunding of $1,160,000 G.O. Improvement Bonds, Series 2001 B Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/19/2009 - - 08/0112010 - - 8,130.50 8,130.50 - 02/01/2011 75,000.00 1.150% 5,807.50 80,807.50 88,938.00 08/01/2011 - - 5,376.25 5,376.25 - 02/01/2012 60,000.00 1.550% 5,376.25 85,376.25 90752.50 08/01/2012 - - 4,756.25 4,756.25 - 02/01/2013 75,000.00 1.900% 4,756.25 79,756.25 84,512.50 08/01/2013 - - 4,043.75 4,043.75 - 02/01/2014 80,000.00 2.250% 4,043.75 84,043.75 88,087.50 08/01/2014 - - 3,143.75 3,143.75 - 02/01/2015 75,000.00 2.4500/a 3,143.75 78,143.75 81,287.50 08/01/2015 - 2,225.00 2,225.00 - 02/01/2016 80,000.00 2.750% 2,225.00 82,225.00 84,450.00 08/01/2016 - - 1,125.00 1,125.00 - 02/01/2017 75,000.00 3.000% 1125.00 76,125.00 77,250.00 Total $540,000.00 - $55,278.00 $595,278.00 - Yield Statistics Bond Year Dollars $2,268.00 Average Life 4.200 Years Average Coupon 2.4373016% Net Interest Cost (NIC) 2.6753968% True Interest Cost (TIC) _ — 2.6809992% Bond Yield for Arbitrage purposes 2.4948592% All Inclusive Cost (AIC) 3.1091606% IRS Form 8038 Net Interest Cost 2.43730161/10 Weighted Average Maturity 4.200 Years 09 Cur refunding of Serie 1 018 $1.16M 1 10/19/2009 1 4:17 PM Ehlers •Associates, Leaders St Anthony, MN Purpose Two - $540,000 Proposed Current Refunding of $1,160,000 G.O. Improvement Bonds, Series Debt Service Comparison 2001 B Date Total P+I Net New DIS Old Net DIS Savings 02/0112010 - 02/01/2011 88,938.00 02/01/2012 90,752.50 02/01/2013 84,512.50 02/01/2014 88,087.50 - 88,938.00 90,752,50 84,512.50 88,087.50 T - 102,670.00 104,445.00 100,925.00 102,245.00 - 13,732.00 13,692.50 16,412.50 14 157.50 02/01/2015 81,287.50 02/01/2016 84,450.00 02/0112017 77,250.00 81,287.50 84,450.00 77,250.00 98,250.00 99,000.00 94,500.00 16,962.50 14,550.00 17,250.00 Total $595,278.00 $595,278,00 $702,035.00 $106,757.00 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings ..................... 94,029.31 Net PV Cashflow Savings @ 3.109%(A1C)............ 94,029.31 Transfers from Prior Issue Debt Service F'und...... (58,000.00) Contingency or Rounding Amount .................... (1,234.84) Net Present Value Benefit $34,794.47 Net PV Benefit / $634,902.99 PV Refunded Debt Service 5.480% Net PV Benefit / $585,000 Refunded Principal... 5.948% Net PV Benefit / $540,000 Refunding Principal.. 6.443% Refunding Bond Information Refunding Dated Date 11/19/2009 Refunding Delivery Date 11/19/2009 09 Cur refunding of Serie 101B $1.16M 1 10/1912009 l 4:17 PM Ehlers w • Associates, Leadersin Public Finance Page 10 St Anthony, MN $625,000 G.O. Tax Abatement Bonds, Series 2001 A Prior Original Debt Service Date Principal Coupon Interest Total P+1 Fiscal Total 02101/2010 - - 08/01/2010 - - 7,172.50 7,172.50 - 02/01/2011 45,000.00 4.250% 7,172.50 52,172.50 59,345.00 08/01/2011 - - 6,216.25 6,216,25 - 02/01/2012 50,000.00 4.375% 6,216.25 56,216.25 62,432.50 08/0112012 - - 5,122.50 5,122.50 - 02/01/2013 50,000.00 4.500% 5,122.50 55,122.50 60,245.00 08/01/2013 - - 3,997.50 3,997.50 - 02/01/2014 55,000.00 4.600%o 3,997.50 58,997.50 62,995.00 08101/2014 - - 2,732.50 2,732.50 - 02/01/2015 55,000.00 4.700% 2,732.50 57,732.50 60,465.00 08/01/2015 - - 1,440.00 1,440.00 02/01/2016 60,000.00 4.800% 1,440.00 61,440.00 62,880.00 Total $315,000.00 - $53,362.50 $368,362.50 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation 11/19/2009 Average Life_ 3.851 Years Average Coupon 4.3992168% Weighted Avera&e Maturity Tar Basis) 3.851 Years Refunding Bond Information Refunding Dated Date 11/19t2009 Refunding Delivery Date — 11/19/2009 Ser 01A $625K GO Tax A6at l SINGLE PURPOSE 1 1011912009 1 4:17 PM Ehlers a Associates, Leaders St Anthony, MN Purpose Three - $320,000 Proposed Current Refunding of $625,000 G.O. Tax Abatement Bonds, Series 2001A Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/19/2009 - - 08/01/2010 - - 4,532.50 4,532.50 - 02/01/2011 50,000.00 1.1500/0 3,237.50 53,237.50 57,770.00 08/01/2011 - - 2,950.00 2,950.00 - 02/01/2012 55,000.00 1.550% 2,950.00 57,950.00 60,900.00 08/01/2012 - - 2,523.75 2,523.75 - 02/01/2013 50,000.00 1.900% 2,523.75 52,523.75 55,047.50 08/01/2013 - - 2,048.75 2,048.75 - 02/0112014 55,000.00 2.250% 2,048.75 57,048.75 59,097.50 08/01/2014 - 1,430.00 1,430.00 02/01/2015 55,000.00 2.450% 1,430.00 56,430.00 57,860.00 08/01/2015 - - 756.25 756.25 - 02/01/2016 55,000.00 2.750% 756.25 55,756.25 56,512.50 Total 5320,000.00 - $27,187.50 $347,187.50 - Yield Statistics Bond Year Dollars $1,199.00 Average Life 3.747 Years Average Coupon 2.2675146% Net Interest Cost IC 2.5344037% True Interest Cost (TIC) 2.5421671% Bond field for Arbitrage Purposes 2.4948592% All Inclusive Cost (AIC) 3.0170856% IRS Form 8038 Net Interest Cost 2.2675146% Weighted Average Maturity 3.747 Years 09 Cur refunding of Serie 101A $625K 1 10119/2009 1 4:17 PM Ehlers St Anthony, MN Purpose Three - $320,000 Proposed Current Refunding of $625,000 G.O. Tax Abatement Bonds, Series 2001A Debt Service Comparison Net New Daft Total P*I _ DIS Old Net D/S Savings 02/0MO10 - -- Net Present Value Benefit _ - 02/01/2011 57,770.00 57,770.00 59,345.00 1,575.00 02/01/2012 60,900.00 60,900.00 62,432.50 1,532.50 02/01/2013 55,047.50 55,047.50 60,245.00 5,197.50 02/01/2014 59,097.50 59,097.50 62,995.00 3,997.50 02101/2015 57,860A0 57,860.00 60,465.00 2,605.00 02/01/2016 56,512.50 56,512.50 62,880.00 6,367.50 Total $347,187.50 $347,187.50 $368,36250 $21,175.00 PV Analysis Summary, Net to Net)_ Gross PV Debt Service Savings ..................... Net PV Cashflow Savings Q 3.017°/a(A1C)............ 18,803.04 18,803.04 Contingency or Rounding, Amount....................(3,438.67) Net Present Value Benefit _ $15,364.37 Net PV Benefit / $336,518.83 PV Refunded Debt Service 4.566% Net PV Benefit / $315,000 Refunded Principal... 4.878% Net PV Benefit/ $320,000 Refunding Principal.. 4.801% Refunding Bond Information Refunding Dated Date 11/19/2009 Refunding Delivery Date _ -_ 11/19/2009 09 Cur refunding of Serie 101A $625K 1 10119/2009 1 4:17 PM Council Member Debt Issuance Serv`c Resolution No. introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $1,700,000 GO Refunding Bonds, Series 2009B A. WHEREAS, the City Council of the City of St. Anthony, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $1,700,000 GO Refunding Bonds, Series 2009B (the "Bonds"), to refinance the 2001A, 2001B and 2002A Bonds in the City; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting, Proposal Opening. The City Council shall meet at 7:00 p.m. on November 24, 2009, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this 27th day of October , 2009. City Clerk A WSB 34 & Associates, Inc. Infrastructure ■ Engineering s Planning ■ Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763 541-4800 Fax: 763 541-1700 October 19, 2009 The 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 for October 2009 W SB Project No. 1626-37 Dear Honorable Mayor, City Council and Staff: This letter is intended to provide you with an update on the current status of ongoing City projects. Outlined below please find a list of the projects, along with the current status of each project and the activities anticipated to be completed in the upcoming months: I. 2009 Street Reconstruction Project The 2009 Street Reconstruction Project is nearing substantial completion. All utility construction and road grading has been competed. The remaining items to be completed are temporary striping, turf establishment, and the final lift of pavement. II. Water Tower Park Watermain Replacement Project Replacement of the waternnain surrounding Water Tower Park has been completed. III, Arbors Alley Improvement Project The Arbors Alley Improvement Project has been completed. IV. St. Anthony Boulevard Mill and Overlay Project Resurfacing of St. Anthony Boulevard has been completed from Coolidge Street to Silver Lake Road and from Hwy 88 to the east approximately 1,100 feet. V. St. Anthony Village Water Reuse Facility The Water Reuse Facility has been completed and is operational. Staff will be reviewing the first year of operation and looking for ways to improve the systems performance. VL Emerald Park The grand opening for Emerald Park was held on Wednesday October 14, 2009. VII, 2010 Street Reconstruction Project Design of the 2010 Street Reconstruction project has begun. We have explored a variety of proposed road layouts including installing a cul-de-sac at select locations on Silver Lane. Attached are two potential layouts for cul-de-sacs. F1W P W IN11065-221LTR-EngrUpdate-052008.doe City Engineer's Update for October 2009 October 16, 2009 Page 2 A meeting was held with the City of New Brighton to review the layouts and the issues associated with installation of a cul-de-sac alternative. The concerns indentified with installing a cul-de-sac include: • Right-of-way acquisition needs • Loss of state aid status/funding • Increased response time for emergency personnel • Potential effects on school bus routing • Route changes for garbage haulers. • Increasing traffic in other areas of New Brighton • Silver Lane is classified as a Major Collector in the New Brighton Comprehensive Plan • Cul-de-sac would not be in conformance with existing New Brighton Policy • Traffic Study would need to be conducted to determine need for Cul-de-sac and impact to traffic patterns on the adjacent roads. Attached for your review, please find a copy of a letter from the City of New Brighton highlighting a few of their concerns. As an alternative to constructing a cul-de-sac we are recommending the street width be reduced and parking be eliminated on the St. Anthony side of the roadway. This will assist in calming traffic by giving the street a more confined and residential feel. VII1. Silver Lane Sidewalk At your request we are currently in the process of reviewing the issues associated with moving the proposed Silver Lane sidewalk from the south side to the north side of the street from Stinson to Silver Lake Road. Enclosed is a figure indicating the impact of a sidewalk being construction on the north side of Silver Lane. Based on the number of potential conflicts, property acquisitions, and disruptions to the surrounding landscape; we are recommending the sidewalk be installed on the south side of Silver Lane. If you have any questions on these projects or any other projects within the City of St. Anthony, please feel free to contact me at 763-287-7182, or I will be available to answer your questions at the October 27 City Council meeting. Sincerely, WSB & Associates, Inn. Todd E. Hubmer, PE City Engineer cc: Mike Morrison, City of St. Anthony Jay Hartman, City of St. Anthony P\ W P W IN\1065-22\L7'R-LngrUpdatc-052008.doc 35 iy c' r� NI W II HON 111C City that Ibi 4s f111' pDU October 14, 2004 Mr. Michael Mornson City Manager City of St Anthony 3301 Silver Lake Road NE St Anthony, MN 55418 Re: Silver Lane Reconstruction Cul-de-sac Construction Alternative Dear Mr. Momson; This letter is a follow-up to the meeting between St. Anthony and New Brighton City Staff regarding various cul- de-sac alternatives for the Silver Lane. It is the recommendation of New Brighton the cul-de-sac alternative not be pursued for the following reasons: 1. Silver Lane is classified as a "Major Collector" in New Brighton, installing a cul-de-sac on Silver Lane would essentially cut off access to the southerly neighborhood located north of Silver Lane and Oakwood Drive. This may increase traffic on interior streets and other collectors throughout this portion ofthe City of New Brighton. A full traffic study would need to be completed to further explore the adverse effects on traffic, school bus routes, garbage hauler, and emergency response routes. 2. The New Brighton Fire Department has expressed concern with the cul-de-sac do to the potential increase in response time to serve the high density residential areas that exist on the north side of Silver Lane between Silver Lake Road and Oakwood Drive. 3. The construction of a cul-de-sac would require the acquisition of additional right-of-way on Silver Lane and Oakwood Drive. The acquisition of additional right-of-way will most certainly increase project costs and in the event that residents are unwilling sell, a lengthy eminent domain process may ensue. 4. Silver Lane and 16s' Avenue SW are currently classified as MSAS routes. A cul-de-sac would result in the loss of MSAS classification for both routes. A loss in MSAS classification would mean a loss of state funding for the project which is anticipated to aid in financing the New Brighton portion of the project. 5. New Brighton's policies for traffic calming are to "Avoid traffic calming measures where the effect is to simply relocate a traffic problem to another location" and "consider traffic calming measures on residential collectors where traffic volumes exceed 3,000 vehicles per day". The cul-de-sac alternatives are not consistent with either of these policies. As an alternative to constricting a cul-de-sac, the City of New Brighton is proposing the roadway width be reduced in selected locations as well as additional advisory signing to assist reducing traffic speeds. Dean R Lotter City Maiiagc/ 36 37 a !�• rsVi .. ubpWu,n�sucw.3\ooJNI-9t9'6Va S Lo . 16 0 7 Z WWI% ,a MEMORANDUM DATE: October 16, 2009 TO: Mayor and Councilmembers FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: TIERED WATER RATES Overview: Minnesota Statutes, section 103G.291 was amended to include a requirement for public water suppliers serving more than 1,000 people to adopt a water rate structure that encourages conservation. To comply with the law, effective 01/01/2010, Cities must implement a tiered system of water rates that charges a higher rate per unit as water usage increases. The conservation rates are for all user groups including residential, multi -family and commercial users of water. Currently, St. Anthony has a uniform rate structure where the cost per unit ($2.60 per 1,000 gallons) is the same regardless of the volume used. An example of residential tiered water rates would be as follows: 0 — 7,500* Gallons 7,500 — 15,000 Gallons 15,000 — 22,500 Gallons 22,500 — 30,000 Gallons Over 30,000 Gallons *Minimum bill = $7,500 Gallons Meetings to Date: $2.60 per 1,000 Gallons $2.73 per 1,000 — 5% increase $3.00 per 1,000 — 10% increase $3.45 per 1,000 — 15% increase $4.32 per 1,000 — 25% increase The City Council and Staff reviewed tiered water rates at their June 1" and August 3`d work sessions. In addition, a presentation and discussion occurred at the August 25°i and October 13°' regular Council Meetings. The City Council has expressed the need to impact all user groups equally. To accomplish this goal, City Staff developed the following criteria: 1) Same base rate of $2.60 per 1,000 for all User Groups. 2) Same percentage increase structure for all User Groups. 3) Each User Group will have its own tier structure. At the October 13°i meeting, the City Council directed staff to include a 5% tier and change the last tier from a 20% to 25%. The following is a recap of the proposed tiers for all user groups (the projected impact of the tiers 41 is equal to all user groups): Proposed Residential Tiers: Proposed Commercial Tiers: Gallons Tier I 0 - 7,500* Tier II 7,500 - 53,500 Tier III 53,500 - 175,000 Tier IV 175,000 -300,000 Tier V Over 300,000 *Minimum bill = $7,500 Gallons Propose Multi -Family: $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase A) Using the Residential Tier Structure B) Total consumption is divided by the number of units. C) The cost per unit is multiplied by the number of units to determine the quarterly bill. Extreme Volume Users (Individual Tiers): Gallons Tier I 0 - 7,500* Tier 11 7,500 - 15,000 Tier III 15,000 - 22,500 Tier IV 22,500 - 30,000 Tier V Over 30,000 Proposed Commercial Tiers: Gallons Tier I 0 - 7,500* Tier II 7,500 - 53,500 Tier III 53,500 - 175,000 Tier IV 175,000 -300,000 Tier V Over 300,000 *Minimum bill = $7,500 Gallons Propose Multi -Family: $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase A) Using the Residential Tier Structure B) Total consumption is divided by the number of units. C) The cost per unit is multiplied by the number of units to determine the quarterly bill. Extreme Volume Users (Individual Tiers): Wilshire Elementar St Anthony High School Tier I Gallons Tier I 0-7,500 Tier II 7,500 - 850,000 Tier III 850,000 -1,150,000 Tier IV 1,150,000-1,450,000 Tier V Over 1,450,000 Wilshire Elementar Nappy's Potato Chips Gallons Tier I 0-7,500 Tier II 7,500 - 510,000 Tier III 510,000 - 610,000 Tier IV 610,000 - 710,000 Tier V Over 710,000 Nappy's Potato Chips Recommendation: $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) Gallons Tier I 0-7,500 Tier II 7,500 - 3,650,000 Tier III 3,650,000 - 4,650,000 Tier IV 4,650,000 - 5,650,000 Tier V Over 5,650,000 Recommendation: $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase $2.60 per 1,000 Gallons (Base Rate) $2.73 per 1,000 - 5% increase $3.00 per 1,000 - 10% increase $3.45 per 1,000 - 15% increase $4.32 per 1,000 - 25% increase To comply with State Law, the City Council amend ordinance 33.036 to include tiered water rates for all residential, commercial and extreme volume users. Tiered Water Rates St. Anthony City Council October 27, 2009 Water Conservation Tiered Water Rates - 2010 State Law 103G.291 Mandate's Cities Implement Conservation Rates (1/1/2010). Cost Per Unit Increases as Water Use Increases. To Encourage Conservation, Cost Should be Significant Between Tiers. DNR Committee Recommended: 25% Increase Between the First Tier. 25% Increase Between the Second Tier. 50% Between the Last Tier. St. Anthony's Current Structure -- Flat Rate $2.60 Per 1,000 Gallons with No Penalty for Increased Water Usage (Residential, Commercial & Multi -Family). 42 1 Meetings to Date June 1 st - Work Session August 3,d- Work Session August 25th- Council Meeting October 13th- Council Meeting Tiered Water Rates are for all User Groups Goal is to Impact Each User Group Equally to Conserve Water. Residential Commercial/industrial Multi -Family Extreme Volume Users: School District Happy's Potato Chips Base Rate the Same for all User Groups $2.60 per 1,000 Gallons. M 2 MS Proposed Residential Tiers Residential Tier Structure* 0 - 7,500 Gallons Tier 1 343** 7,500 - 15,000 Gallons Tier II 699 5% 15,000 - 22,500 Gallons Tier III 593 10% 22,500 - 30,000 Gallons Tier IV 319 15% Over 30,000 Gallons Tier V 229 25% 2,183 *Multi -Family - The Quarterly Bill is Based on Determining the Usage Per Unit, Applying it to the Residential Tier Rate and Multiplying it by the Number of Units. **Minimum Bill = 7,500 Gallons Tiered Residential Percentages Percentage Changes; Option_1_ Qption 2 Option 3 Tier I - Base Rate $2.60 per 1,000 Gallons* Tier It 5% 5% 5% Tier III 10% 10% 10% Tier IV 150/0 15% 1576 Tier V 25% 30% 35% Same Percentage for all User Groups *Minimum Bill = 7,500 Gallons Comparison of Rates: Water Bill Residential Option 1 Option 2 Option 3 0 - 7,500 Gallons $2.60 $2.60 $2.60 7,500 -15,000 Gallons $2.73-5% $2.73 $2.73 15,000 - 22,500 Gallons $3.00-10% $3.00 $3.00 22,500 - 30,000 Gallons $3.45-15% $3.45 $3.45 Over 30,000 Gallons $4.32-25% $4.49-30% $4.66 - 35% Same Rate Structure will be used for all User Groups. $ 41.71 Commercialllndustrial $ 60.29 Extreme Volume Users Q3 34,001 $ 88.40 $105.68 Comparison of Residential Water Bill Base Rate = $2.60 per 1,000 Gallons 5%, 10%J5%.25% 57, 10%,15%,30% 5%,10%,15%,35% Current Option 1 Option 2 Option 3 Q1 15,557 $ 40.50 $ 41.71 $ 41.71 $ 41.71 Q2 21,765 $ 56.59 $ 60.29 $ 60.29 $ 60.29 Q3 34,001 $ 88.40 $105.68 $106.37 $107.06 Q416,660 S 43.3 S 44.96 44.96 S 44.96 $228.81 $252.64 $253.33 $254.02 Dollar Increase $ 23.83 $ 24.52 $ 25.21 Percentage Increase 10.4% 10.7% 11%4 Dollar Increase between Options $ .69 $ .69 HIM 0 Proposed Commercial Tiers Commercial Tier Structure. 5%.10%15%,25% 5%10%,15%,30% 0 - 7,500 Gallons Tier 1 39* Option 1 7,500 - 53,500 Gallons Tier 11 48 576 53,500 -175,000 Gallons Tier ill 24 10% 175,000 - 300,000 Gallons Tier IV 9 15% Over 300,000 Gallons Tier V 4 257o $544.00 124 $196.04 210.85 *Minimum Bill = 7,500 Gallons $210.85 $1,222.84 Comparison of Commercial Water Bill Base Rate = $2.60 per 1,000 Gallons 5%.10%15%,25% 5%10%,15%,30% 5%.10%,15%,35% Current Option 1 Option 2 Option 3 01 93,345 $242.70 $264.73 $264.73 $264.73 Q2116,719 $303.47 $334.93 $334.96 $334.96 Q3184,857 $480.63 $544.00 $544.00 $544.00 Q4 75,400 $196.04 210.85 $210.85 $210.85 $1,222.84 $1,354.51 $1,354.51 $1,354.51 Dollar Increase $ 131,67 leo Change Between Options Percentage Increase 10.8% For Average Commercial Usage F. Wi Proposed Tiers - High School High School W Tiered Water Rate Structure: 0 - 7,500 Gallons Tier l 7,500 - 850,000 Gallons Tier II 5% 850,000 - 1,150,000 Gallons Tier III 1076 1,150,000 -- 1,450,000 Gallons Tier IV 15%0 Over 1,450,000 Gallons Tier V 25% Comparison of High School Water Sill Base (tate = $2.60 per 1,000 Gallons 5%,10%,15%,25% 5%,107.,15%,30% 5%.10%.157.,35% Current Option 1 Option 2 Option 3 Q11,014,260 $2,637.08 $2,812.31 $2,812.31 $2,812.31 Q2 827,150 $2,150.59 $2,257.14 $2,257,14 $2,257.14 Q31,601,880 $4,164.89 $4,910.65 $4,936.47 $4,962,29 Q4 732,700 1905.02 $1,999.30 1999.30 $1,999.30 $10,857.58 $11,979.40 $12,005.22 $12,031.04 Dollar Increase $ 1,121.82 $ 1,147.64 $ 1,173.46 Percentage Increase 10.3% 10.6% 10.8%'0 Dollar Increase Between Options $ 25.82 $ 25,82 M Ni Proposed Tiers ` Wilshire Elementary 5%,10%.15%.25% k Wilshire - Tiered Water Rate Structure: 0 -- 7,500 Gallons Tier 1 Option 3 7,500 - 510,000 Gallons Tier 11 5% 510,000 -- 610,000 Gallons Tier 111 10% 610,000 -- 710,000 Gallons Tier IV 150 Over 710,000 Gallons Tier V 25% Comparison Wilshire Elementary Water Bill Base Rate = $2.60 per 1,000 Gallons 5%,10%.15%.25% 5%,10%,15%,30% 5%.107.15%,35% Current Option 1 Option 2 Option 3 Q1 663,363 $1,724.74 $1,875,43 $1,875.43 $1,875.43 Q2 731,132 $1,900,94 $2,127.62 $2,131.21 $2,134.80 Q3 615,349 $1,599.91 $1,709.78 $1,709,78 $1,709.78 Q4 739,660 $1,923.12 $2164.46 2169.50 $2,174.54 $7,148.71 $7,877.29 $7,885.92 $7,894.55 Dollar Increase $ 728.58 $ 737.21 $ 745.84 Percentage Increase 10.2% 10.3% 10.47o Dollar Increase Between Options $ 8.64 $ 8.63 SM. VII 49 Proposed Tiers - Happy's Happy's Potato Chips - Tiered Water Rate Structure; 0 - 7,500 Gallons Tier 1 5%,I M,15%,25% 5%,10%,157.,30% 7,500 - 3,650,000 Gallons Tier 11 5% 3,650,000 - 4,650,000 Gallons Tier 111 10% 4,650,000 - 5,650,000 Tier IV 15% Over 5,650,000 Gallons Tier V 25% Comparison Happy's Water Bill Base Rate = $2.60 per 1,000 Gallons 5%,I M,15%,25% 5%,10%,157.,30% 5%,10%,15%,35% Current Option 1 Option 2 Option 3 Q14,473,503 $12,671.11 $13,734.61 $13,734.61 $13,734.61 Q2 3,885,576 $10,102.50 $10,670.25 $10,670.25 $10,670.25 Q3 6,313,688 $16,415.59 $19,280.66 $19,393.48 $19,506.31 Q4 4,739.260 $12,322.08 $13,271.47 $13,271.47 $13,271.47 $51,511.28 $56,956.99 $57,069.81 $57,182.64 Dollar Increase $ 5,445.71 $ 5,558.53 $ 5,671.36 Percentage Increase 10.6% 10.8% 11.1% Dollar Increase between Options $ 112.82 $ 112.83 [Council Direction to Staff~ Amend Ordinance 33.036 to Adopt a Tiered Water Rate Structure. First Reading: October 27, 2009 Second Reading: November 10, 2009 Third Reading: November 24, 2009 IDiscussion/Feedback 50 I 51 Previous Powerpoint (for reference only) 52 Tiered Water Rates St. Anthony City Council October 13, 2009 Water Conservation Tiered Water Rates - 2010 State Law 103G.291 Mandate's Cities Implement Conservation Rates (1/1 /2010). Cost Per Unit Increases as Water Use Increases. To Encourage Conservation, Cost Should be Signlfdcant Between Tiers. DNR Committee Recommended: 25% Increase Between the First Tier. 25% Increase Between the Second Tier. 50% Between the Last Tier. Water Conservation 2010 St. Anthony Current Structure (Flat Rate) Flat Rale Is used for all user Groups (Resldentfol, Commesclal, Muill-Family). all, is Based on Consumption with No Penalty for Increased Water Usage. Minimum BITS 7,5011 Gallons $2.60 per L000 Over Minimum $2.60 per 1,000 Example of Tiered Water Rale Struclure: 0 -15,000 Gallons $2.60 per 1000' 15,001 -22,500 Gallons $2.86 per 1000 10% 22,501 - 30,000 Gallons $3.22 per 1000 12.5% Over 30,000 Gallons $3.70 per 1000 15% *Minimum Oil of 7,500 Gallons Meetings to Date June 1st - Work Session August 3rd - Work Session August 25th - Council Meeting October 13th - Council Meeting r Tiered Water Rates are for all User Groups Goal Is to Impact Each User Group Equally to Conserve water. Residential Commercial/industrial Multi -Family Extreme Volume Users: School District Happy's Potato Chips Base Rate the Same for all User Groups $2.60 per 1,(100 Gallons. Tiered Water Rates Same Percentage Structure for all User Groups. Percentage Changes under Consideration: Tier I Option 1 Option 2 DNR Tier 11 107. 107. 257. Tier 111 12.5% 15% 25% Tier IV 15%® 2017. 50%a Each User Group will have their own Tiered Plater Rate Structure, Extreme Volume Users will Have Their Own Individual Tiers 53 N Proposed Residential Tiers LWafer Bill Residential Tiered Water Rate Structure. 0 -15,000 Gallons Tler 1 1,042 15,001 - 22,500 Gallons Tier II 593 22,501 - 30,000 Gallons Tier III 319 Over 30,000 Gallons Tier IV 229 $ 40.88 2,183 *Minimum Bill 7,500 Gallons $ 60.99 r Comparison of Residential LWafer Bill Commercial Tiered Water hate Structure. Base Rate = $2.60 per 1,000 Gallons 87 50,001 - 175,000 Gallons Tier II rof:.i xsx..+sx current Ontton 1 ioz.�sx,mz Option 2 ns.rsx,sa: : DNR Q1 15,577 $40.50 3 40.65 $ 40.65 $ 40.88 Q2 21.765 $56.59 $ 5$.35 S 58.35 $ 60.99 Q3 34,001 $88.40 $ 100.01 $100.92 $118.23 Q4 16,660 S43.32 S 43.75 S 43.75 S 44.44 $228.81 $242.79 $243.67 $264.50 Dollar Increase $ 13.98 $ 14.86 $ 35.69 Percentage Increase 6.1% 6.5% 15.6% Dollar Increase between Options $ .88 $ 20.83 Proposed Commercial Tiers Commercial Tiered Water hate Structure. 0 - 50,000 Gallons Tier 1 87 50,001 - 175,000 Gallons Tier II 24 175,001 - 300,000 Gallons Tier 111 9 Over 300,000 Gallons Tier IV 4 124 54 3 Comparison of Commercial Water Bill Base Rate = $2.60 per 1,000 Gallons IOL.r2m15R Current Option 1 IM.,ISF,]Ox Option 2 a39CaSR.r01G DNR Q1 93,345 $242.70 $253.97 $253.97 $270.87 Q2116,719 $303.47 $320.82 $320.82 $346.84 03184,857 $480.63 $519.22 $519.93 $576.30 Q4 75,400 $196.04 202. $202.64 212.55 $1.222.83 $1,296.65 $1,297.36 $1,406.56 Dollar Increase $ 73.82 $ 74.53 $ 183.73 Percentage increase 6.0% 6.1% 15.370 Dollar Increase Between Options $ .71 $ 109.20 r Proposed Multi -Family IL Tiered Rate Structure DNR Recommends Multi -Family be Charged on Consumption Based on Per Unit Usage. Use Same Tler Structure as Residential. Quarterly Bill: total Consumption Is Divided by the number of Units to Determine Consumption Per Unit. Using the Residential Tier Structure, determine the Cost Per Vail. Multiply the Cost Per Und nines 1110 Number of UnNs = Quarterly BIII Proposed Tiers - High School High School - Tiered Wafer Rate Structure: 0 - 750,000 Gallons Tier 1 750,001 - 1,050,000 Gallons Tier II 1,050,001 - 1,350,000 Gallons Tier III Over 1,350,000 Gallons Tier IV 55 n lu M Comparison of High School Water Bill Base Rate = $2.60 per 1,000 Gallons Water Bill 105.1131i,I5R Current Option I 101i.55149Ch Oplion 2 2Sh.1TX,55% DNR Q11,014,260 $2,637.08 $2,705.78 $2,705.78 $2,808.85 Q2 827,150 $2,150.59 $2,170.65 $2,170.65 $2,200.74 Q31,601,880 $4,164.89 $4,746.26 $4,789.93 $5,676.95 Q4 732,700$1,905.02 51.905.02 $1,905.02 $1 90 .02 $10,857.58 $11,527.71 $11,571.38 $12,591.56 Dollar Increase $ 670.13 $ 713.80 $ 1,733,98 Percentage Increase 6.27. 6.6% 15.9% Dollar Increase Between Options $ 43.67 $ 1,020.18 Proposed Tiers Wilshire Elementary Wilshire - Tiered Water Rate Structure: 0 -475,000 Gallons Tier 1 475,001 - 575,000 Gallons Tier II 575,001 - 675,000 Gallons Tier III Over 675,000 Gallons Tier IV Comparison Wilshire Elementary Water Bill Base Rate = $2.60 per 1,000 Gallons iox.izMIM Current Option 1 ioaisxM Option 2 zrnAMn DNR Ql 663,363 $1,724.74 $1,805.53 $1,811.71 $1,918.75 42 731,132 $1,900,94 $2,059.67 $2,07L72 $2.307.84 Q3 615,349 $1,599,01 $1.650.92 $1,653.75 $1,723.82 Q4 739,660 51,923.12 52.092.54 52.105 52, ..359.78 $7,148.71 $7,608.71 $7,642.59 $8,310.19 Dollar Increase $ 460.00 $ 493.88 $1,161.48 Percentage Increase 6.4% 6.9% 16.2% Dollar Increase Between Options $ 33.88 $ 667:60 (Proposed Tiers Happy's Happy's Potato Chips - Tiered Water Rate Structure: Iaa.izsr..isr. O_pflon 1 Option 2 DNR 0 -- 3,400,000 Gallons Tier 1 3,400,001 -y 4,400,000 Gallons Tier II 4,400,001 - 5,400,000 Gallons Tier ill Over 5,400,000 Gallons Tier IV Comparison Happy's Water Bill Rose Rate = $2.60 per 1,000 Gallons Current Iaa.izsr..isr. O_pflon 1 Option 2 DNR Ql 4,473,503 $12,671.11 $13,224.68 $13,257.82 $14,012.42 02 3,885,576 $10,102.50 $10,228.75 $10,228.75 $10,418.12 Q36,313,686 $16,415.59 $18,300.65 $18,599.07 $21,714.36 Q44,739.260 512.322.08 512.792.42 512.816.17 513.467.40 $51,511.28 $54,546.50 $54,901.81 $59,612.30 Dollar lncrease $3,035.22 $3,390.53 $8,101.02 Percentage Increase 5.9% 6.67. 15.7% Dollar Increase between Options $ 355.31 $ 4,710.49 [Council Direction to Staff Base Rate: Leave Base Rate at $2.60 per 1,000 Gallons. Pick the Percentage Split between Tiers 10%,12.5%,15% 10%,15%,20% 25%,25%,50%. Amend Ordinance 33.036 To include Tiered Woter Rates, Set Dates for the Three Read[ngs. 57 6 M Future Discussions: 2010 Gool Setting Discussion: Should Water Rates be Increased to Include Funding for CIP infrastructure Improvements? Rate Sensitivity Analysis: (fall of 2010): Analyze the Increase or Decrease In Annual Revenues Generated by the Tlered Water Rates, Revenues are Subject to Change and Confingent Upon: Usage. Conservation d Weather Conditions Evaluate the Effect of Tiers on each User Group. Evalvale the School District's Usage and adjust Tier Level accordingly. N Necessary Revise Rates or Tier Structures. 59 CITY OF ST. ANTHONY VILLAGE ORDINANCE 2009-006 WATER § 33.036 WATER RATES. Water bills will be computed quarterly based on metered water used a the rate of $0.0026 pe.. ,.allon according to the tiered rates listed below: Residential Multi -Family The Multi -Family quarterly water bill is based on the total consumption divided by the number of units to determine the Consumption per unit. Multi -Family customers are billed according to the Residential Tier Rate structure. Example; 10 unit complex 1200,000 gallon consumption = 20,000 gallons per unit First 7,500 gallons x $2.60= $19.50 7,500 gallons x $2.73 = $20.48 5,000 gallons x $3.00 = $15.00 Per Unit Billing = $54.98 x 10 units = $549.80 Commercial Consumption (gallons) Rate Tier I 0-7,500 $2.60 Tier II 7,500 — 15,000 $2.73 Tier III 15,000 — 22,500 $3.00 Tier IV 22,500 — 30,000 $3.45 Tier V Over 30,000 $4.32 Multi -Family The Multi -Family quarterly water bill is based on the total consumption divided by the number of units to determine the Consumption per unit. Multi -Family customers are billed according to the Residential Tier Rate structure. Example; 10 unit complex 1200,000 gallon consumption = 20,000 gallons per unit First 7,500 gallons x $2.60= $19.50 7,500 gallons x $2.73 = $20.48 5,000 gallons x $3.00 = $15.00 Per Unit Billing = $54.98 x 10 units = $549.80 Commercial Consumption (gallons) Rate Tier 1 0-7,500 $2.60 Tier II 7,500 — 53,500 $2.73 Tier III 53,500 — 175,000 $3.00 Tier IV 175,000 — 300,000 $3.45 Tier V Over 300,000 $4.32 Wilshire Elementary Consumption (gallons) Rate Tier 1 0-7,500 $2.60 Tier II 7,500 — 510,000 $2.73 TierIIl 510,000 — 610,000 $3.00 Tier IV 610,000 — 710,000 $3.45 Tier V Over 710,000 $4.32 St. Anthouv High School Hannv's Potato Chins Consumption (gallons) Rate Tier I 0-7,500 $2.60 Tier II 7,500 — 3,650,000 $2.73 Tier III 3,650,000 — 4,650,000 $3.00 Tier IV 4,650,000 — 5,650,000 $3.45 Tier V Over 5,650,000 $4.32 All metered irrigation systems will be charged at the IV (fourth) tier rate for all usage. These ordinance changes shall be effective January 1, 2010. First Reading: Second Reading: Adopted: Mayor ATTEST: City Clerk Me Consumption (gallons) Rate Tier I 0-7,500 $2.60 Tier II 7,500 — 850,000 $2.73 Tier III 850,000— 1,150,000 $3.00 Tier IV 1,150,000 — 1,450,000 $3.45 Tier V Over 1,450,000 $4.32 Hannv's Potato Chins Consumption (gallons) Rate Tier I 0-7,500 $2.60 Tier II 7,500 — 3,650,000 $2.73 Tier III 3,650,000 — 4,650,000 $3.00 Tier IV 4,650,000 — 5,650,000 $3.45 Tier V Over 5,650,000 $4.32 All metered irrigation systems will be charged at the IV (fourth) tier rate for all usage. These ordinance changes shall be effective January 1, 2010. First Reading: Second Reading: Adopted: Mayor ATTEST: City Clerk Me 61 MEMORANDUM DATE: October 16, 2009 TO: City Council FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: SEWER RATE INCREASE & DISCUSSION Based on 2008 financial data, the City Auditor reported the need for a sewer rate increase. Operating revenues totaled $797,360 compared to expenditures of $810,920. The deficit of ($13,560) was funded from the existing fund balance. The last sewer rate increase was in 2003 when the rate was changed from $2.77 per 1,000 gallons to $3.30 per 1,000 gallons. Since 2003, there has been no need for an increase due to the City's aggressive I & I program that significantly reduced or eliminated ground water entering the sanitary waste disposal system. This resulted in less gallons being processed by Metropolitan Waste and stabilized the rising per unit cost for disposal. Projected expenditures for 2009 total $843,350. The increase in operating costs includes: 1) Cost of living increase for City employees. 2) Rising cost of health insurance. 3) The per unit cost for sanitary waste disposal has increased since 2003. The anticipated shortfall for 2009 totals ($45,990). Funding for both shortfalls (2008 & 2009 is funded by the 2007 sewer fund balance which increased $105,314. Charles for sanitary waste disposal: The Met Council is moving ahead with restructuring how it pays for sewer capacity already built as part of their system in anticipation of future growth and development. Previously, these charges were paid for by hookup fees called SAC Credits. The current fee of $2,000 per credit is charged for new homes, new development and redevelopment. Because of a significant decline in growth of new development, resulting in loss of income from SAC Credits, the Met Council is shifting the costs to existing homes and businesses. The result for 2010 is that the Met Council has approved a sanitary waste disposal increase of 3.8%. The good news for St. Anthony is the 1 & I program has been effective tool in reducing the amount of sanitary waste enteringthe he system. The reduced owage offset the 3.8% increase and in 2010, the City will experience a $10,400 decrease in sanitary waste disposal costs. 62 Discussions are on-going and the Met Council has set up a task force to determine the options for 2011 and 2012. If increases are approved for those years, a sewer rate increase may be necessary for each of those years. The rate necessary to balance the 2010 sewer operating budget is $3.50 per 1,000 gallons. Evaluating the impact of $3.50 per 1,000 Gallons: The residential sewer rates are set the first quarter of each year (Jan, Feb and March). Sewer rates for commercial/industrial and multi -family are charged on actual usage for each quarter. A breakdown of the impact of the rate change on residential users is as follows: Average residential l`t Quarter Consumption =13,100 Gallons Projected sewer charge per quarter at $3.50 per 1,000 gallons $45.85 Current sewer charge per quarter at $3.30 per 1,000 gallons $43.23 Increase $ 2.62 per quarter Minimum Bill - Consumption = 7,500 Gallons Projected sewer charge per quarter at $3.50 per 1,000 gallons $26.25 Average sewer charge per quarter at $3.30 per 1,000 gallons $24.75 Increase $ 1.50 per quarter Impact of future sewer rates: Average P Quarter Consumption (13,100 Gallons): Charge per quarter at $3.30 per 1,000 Gallons $43.23 (Current) Charge per quarter at $3.50 per 1,000 Gallons $45.85 (Proposed) Minimum Sewer Bill (7,500 Gallons): Charge per quarter at $3.30 per 1,000 Gallons $24.75 (Current) Charge per quarter at $3.50 per 1,000 Gallons $26.25 (Proposed) Annual Revenue Generated: Charge per quarter at $3.30 per 1,000 Gallons $797,360 (Current) Charge per quarter at $3.50 per 1,000 Gallons $845,685 (Proposed) Recommendation: 1) To balance the current operating budget, Council amends current ordinance 33.018 increasing the sewer rate to $3.50 per 1,000 gallons ($.0035 per gallon) effective 01/01/2010. Sewer Rates St. Anthony Council Meeting October 27, 2009 2008 Sewer Revenues & Expenditures • Operating Revenues $797,360 • Operating Expenditures $810,920 ($ 13,560) • Annual Financial Report: u Auditor Reports the Need for Rate Increase, • Last Sewer Rate Increase was in 2003: Li Rate Went from $2.77 per 1,000 Gallons to Current Rate of $3.30 per 1,000 Gallons. 63 1 2009 Projected Sewer Operating Costs • Projected 2009 Expenditures $ 843,350 • Compared to 2008 Revenues $797,360 ($ 45,990)* *Shortfalls for 2008 ($13,560) and 2009 ($45,990) Comes from the 2007 Sewer Fund Balance of $105,314 Projected Sewer Operating Costs 2009 2010 + Salaries/Personal Services $222,525 $222,525 General Supplies $ 12,050 $ 14,675 • Utilities/Insurance/Training $ 67,625 $ 66,800 • MWCC - Waste Disposal $512,700 $502,300* + Maintenance/Repair 28,450 a.. 39,300 $843,350 $845,600 `Decrease in Flowage - Reduces 2010 Disposal Costs 2 i i. Rate Needed to Balance Budget • 241,624,242 2008 Consumption in Gallons. • Projected 2010 Operating Costs $845,600 ❑ 241,624,242 Gallons ❑ C $3.50 per 1,000 Gallons $845,685 - . Rate Need to Balance 2010 Budget. ❑ $3.50 Per 1,000 Gallons. ❑ Current Rate = $3.30 Per 1,000 Gallons. Graph - Revenues/Expenditures 2007-2010 M 3 Residential Impact • Sewer Charges are Set Based on the First Quarter Usage of Each Year (Jan, Feb, March). © Note - Commercial/Industrial, Multi -Family Users Pay Sewer Charges Based on Actual Usage for Each Quarter. • Average V Qtr Residential Consumption = 13,100 Gallons • $3.30 per 1,000 = $43.23 - Current • $3.50 per 1,000 = $45.85 - Proposed • Residential Minimum Bill = 7,500 Gallons • $3.30 per 1,000 = $24.75 - Current • $3.50 per 1,000 = $26.25 - Proposed Impact at Future Increases • Average 1'' Qtr Consumption (13,100) Minimum (7,500) ❑ $3.30 per 1,000 = $43.23 $24.75 Li $3.50 per 1,000 = $45.85 $26.25 • Annual Revenue Generated by Each: ❑ $3,30 per 1,000 $797,360 ❑ $3.50 per 1,000 $845,685 (Balances Budget) M. Pi Council Direction to Staff . Amend Ordinance 33.018 Increasing the Current Sewer Rate to $3.50 per 1,000 Gallons. • First Reading: u October 27, 2009 • Second Reading: u November 10, 2009 • Third Reading: u November 24, 2009 Discussion? 67 5 M. Previous Powerpoint (for reference only) M-4 Sewer Rates 5t. Anthony Council Meeting October 13, 2009 2008 Sewer Revenues & Expenditures • Operating Revenues $797,360 • Operating Expenditures81$ 0,.920 ($ 13,560) • Annual Financial Report: i Auditor Reports the Need for Rale Increase. • Last Sewer Rate Increase was in 2003: Rate Went from $2.77 per 1,000 Gallons to Current Rate of $3.30 per 1,000 Gallons. 2009 Projected Sewer Operating Costs • Projecled 2009 Expenditures $ 843,350 • Compared to 2008 Revenues $ 797.36 ($ 45,990)' `Shortfall will Come From Existing Fund Balance. Charges for 2010 Sanitary Waste Disposal Increased • Loss of SAC Credit Revenue is Shifted to Waste Water Treatment Charges. • Met Council Approves Moving Ahead With Rate Increase: ❑ 2010 - 3.8% ❑ 2011 -Further Analysis/DiscussIon ❑ 2012 -Further Analysis/Discussion • 2010 -St. Anthony Disposal Costs are Reduced by $10,400. u Inflows Into the Sanitary Waste System Show Significant Decrease. Reduction of Flowage Creates Reduction in Disposal Costs. Projected Sewer Operating Costs 'Decrease in Flowage - Reduces 2010 Disposal Costs Rate Needed to Balance Budget • 241,624,242 - 2008 Consumption In Gallons. • ProJecied 2010 Operating Costs $845.600 L) 241,624,242 Goitons L) 0 $3.50 per 1,000 Gallons $845,685 • Rate Need to Balance 2010 Budget. ❑ $3.50 Per 1,000 Gallons. to Current Rale = $3.30 Per 1,000 Gallons. 70 2 200 2010 sa4vdes/Pers01'01 Services $222,525 $222,525 • General Supplies 5 12,050 $ 14,675 • Utilities/tnsurance/troWng $ 67,625 $ 66,800 • MWCC - Waste Disposal $512,700 $502,300` • Maintenance/Repair $ 28.450 1JUM $843,350 $845,600 'Decrease in Flowage - Reduces 2010 Disposal Costs Rate Needed to Balance Budget • 241,624,242 - 2008 Consumption In Gallons. • ProJecied 2010 Operating Costs $845.600 L) 241,624,242 Goitons L) 0 $3.50 per 1,000 Gallons $845,685 • Rate Need to Balance 2010 Budget. ❑ $3.50 Per 1,000 Gallons. to Current Rale = $3.30 Per 1,000 Gallons. 70 2 Graph - Revenues/Expenditures 2007-2010 Residential Impact • Sewer Charges are Set Based on the First Quarter Usage of Each Year (Jan, Feb. March). u Note - Commercial/Industrial, MuIM-Famlly ilsers Pay Sewer Charges Based on Actual Usage for Fgch Quarter. Average V Qtr Residential Consumption = 13,100 Gallons $3-30 per 1,000 = $43.23 - Current $3.50 per 1,000 w $45.85 - Proposed • Residential Minimum Bill = 7,500 Gallons $3.30 per 1,000 = $24.75 - Current • $3.50 per 1,000 = $26.25 - Proposed Impact of Future Increases • Averaae 1* Qh Consumolion (13.100) Minimunl {7,500) a $3.30 per 1,000 = $43.23 $24.75 a $3.50 per 1,000 = $45.85 $26.25 v $3.60 per 1,000 = $47-16 $27-00 Li $3.70 per 1,000 m $48.47 $27.75 • Annual Revenue Generated by Each: u $3.30 per 1,000 $797,360 u 53.50 per 1,000 $845,685 u $3.60 per 1,000 $869,847 u $3.70 per 1,000 $894,010 71 3 72 Council Direction to Staff • Amend Ordinance 33.018 Increasing the Current Sewer Rate to $3.50 per 1,000 Gallons. • Provide Funding for Future Infrastructure Improvements by increasing the Sewer Rate to more than $3.50 per 1,000 Gallons. u Defer Discussion to 2010 Goal Setting. Discussion? CITY OF ST. ANTHONY VILLAGE ORDINANCE 2009-007 SEWER § 33.018 SEWER CIIARGE RATES AND METRO WASTE SURCHARGE. All sewer charges will be at the rate of $0.00335 per gallon of water used or any fi•action thereof ' Mfetrc ` Iaste .c' ^ dere.......:]' `h. -ll.... o....,.1. •,,'� rbe v�j iab . M. :a is 111 § 33.019 MINIMUM CHARGE. The minimum quarterly sewer charge will be based on 7,500 gallons phis4hez: etre These ordinance changes shall be in full force and effect upon passage by the City Council and publication of the Ordinance or a Summary thereof in the City's official newspaper. First Reading: Second Reading: Adopted: ATTEST: City Clerk Mayor 73 FUTURE COUNCIL AGENDA ITEMS 1027/2009 Meeting Date Meeting Type Staff Items/Issues November 10 Regular City Clerk Canvass results fi•om the November 3 General Flection City Manager Finance Director Amending Sewer Rates in Section 33 of the St. Anthony City Code Amending Water Rates in Section 33 o f the St. Anthony City Code Second reading Consent Agenda Certifying Deliquent Billings to "taxes City Manager Ordinance - Sign Text Amendment (second reading) November 24 Regular Planning Commission items from November 17 City Manager Finance Director Amending Sewer Rates in Section 33 of the St. Anthony City Code Amending Water Rates in Section 33 o f the St. Anthony City Code Final Reading L:hlers Bond Sale December s Regular Consent Agenda Appoint Planning and Park Commissioners City Engineer Plans Plans and Specifications and Ordering Advertisement Bids for 2010 Street Project City Manager Finance Director 2010 Budget Meeting December ae Regular Planning Commission items from December 15 2010 January 12 Regular Consent Agenda Housekeeping Issues Swearing in of Elected Officials January 26 Regular Planning Commission items from January 19 February 9 Regular February 28 Regular Planning Commission items from February 16 November 2009 Monthly Planner Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 Election Day 8 9 10 11 12 13 14 City Council Holiday Meeting 7pm Veteran's Day 15 16 17 18 19 20 21 Planning Deadline for Commission Commission Meeting 7 pm applicants 22 23 24 25 26 27 28 City Council Meeting 7 p Holiday Thanksgiving Holiday Thanksgiving 29 30 Oct 2009 Dec 2009 S M T W T F S S M T W T F S 1 2 3 1 2 3 4 5 4 5 6 7 8 9 10 6 7 8 9 10 11 12 1t 12 13 14 15 16 17 13 14 15 16 17 18 19 18 19 20 21 22 23 24 20 21 22 23 24 25 26 25 26 27 28 29 30 31 27 28 29 30 31 Printed by Calendar Creator for Windows on 10/21/2009