HomeMy WebLinkAboutCity Council Packet 08-26-2014 SpecialCITY OF PLYMOUTH
AGENDA
SPECIAL COUNCILMEETING
AUGUST 26, 20141 5:30 p.m.
MEDICINE LAKE CONFERENCE ROOM
1. CALL TO ORDER
2. TOPICS
A. 2015 Budget/2015-2019 Capital Improvements Program
B. Community Improvement Fund
C. Set Future Study Sessions
3. ADJOURN
Special Council Meeting 1 of 1 August 26, 2014
rp) c;ry 4f
Plymouth
Addirr_q Quality to file
MEMORANDUM
2A
To: Mayor and Council
Prepared by: Luke Fischer, Administrative Services Director
Date: August 26, 2014
Item: Budget Follow Up — August 19, 2014 Study Session
The City Council requested additional information on several items at the August 19, 2014 Budget Study Session.
Transit Fare Revenue (4350.120) — The Amended 2015 Budget showed $900,000 in Fare Revenue, which was a
reduction of $200,000 from the 2014 Approved Budget and the 2015 Concept Budget. Transit Manager Hellekson
reviewed the revenue projections and is recommending the Amended 2015 Budget be adjusted to reflect $1,100,000 in
Fare Revenue. Transfers in and transfers out will be adjusted to balance the fund. The Budget will be adjusted to reflect
that change.
Street Maintenance Plow Truck (8100.500) —The Amended 2015 Budget showed $257,600 in Capital Outlay Expense,
which was supported, in part, by the planned purchase of a plow truck. At the work session, the Council indicated its
interest in funding this capital expenditure through 2013 Surplus dollars. The Public Works Street Maintenance budget
will be reduced by $223,000 to reflect this change. This expenditure reduction will be reallocated within the general
fund budget as noted below.
Police Tasers (8100.500) —The Amended 2015 Budget did not included $48,000 for replacement Tasers for the Police
Patrol Division. The Division's Taser inventory was discontinued — meaning software, support, and repair will not be
available. The Patrol budget will be increased by $48,000 to reflect this change. This expenditure is accounted for in the
Plow Truck reduction noted above.
Contingency (9918) —The Amended 2015 Budget plans for an approximate 10% increase in health insurance premiums.
The City's renewal is not due back until mid to late September— creating some uncertainty around these costs. To
ensure adequate funds are available for a potential increase, the City Manager Contingency budget will be increased by
175,000. This expenditure increase is accounted for in the Plow Truck reduction noted above.
Permit Revenue (Data Attached) — Community Development Director Juetten compiled additional data on permit
revenue for Council review. See attached.
Mass Notification (7000) — The Amended 2015 Emergency Management Budget includes a $30,000 line item for a Mass
Notification System. At the study session, there were questions about overall saturation of these systems in
neighboring communities. St. Louis Park recently implemented a system and reports that they can connect with just
under half of the properties in the community — about 10% are through subscription and the balance through
phonebook-listed numbers. Brooklyn Park has been operating four different opt -in systems and has enrolled about
15,000 unique users — or over half of the number of properties in the community. As with any subscription -type service,
we anticipate that enrollments will be low in the beginning, but will grow quickly over time.
Surplus Requests (Revised list attached) — The following amendments have been made to the Surplus Request list:
Security System Upgrades -- $112,000 (eliminated from Surplus, funded from Risk Management); Civil Defense Siren --
Page 1
30,000 (eliminated from Surplus, funded from Resource Planning); CSAH 101 Retaining Wall -- $30,000 (eliminated);
and Station 3 Lead Abatement -- $50,000 (eliminated from Surplus, funded from Risk Management).
Tax Impact Estimations — City staff anticipated preliminary estimates on market value would be available for Tuesday's
meeting. We contacted the County, but these figures have not yet been released. Tax impact estimates will be
completed and shared as soon as the market value information is calculated by the County.
Page 2
August, 2014 Community Development Department Revenue review for remainder of 2014.
2014 APPROVED BUDGET
ACTUAL AS OF AUGUST 18,201A
Revenue Collected I Revenue less Trillium
3,122,602.00 1 $ 2,822,602.00 1
ESTIMATED REVENUE FOR THE REST OF 2014
Polaris 40,000.00
Edina Realty 15,000.00
Misc. Commerical/Industrial 50,000.00
50 additional single family homes at $10,000/home 500,000.00
Expected Additional Revenue 605,000.00
Total less Trillium 3,427,602.00
Over 2014
It should be noted that we currently do not have an approved commercial project that we know will start in 2015
HISTORICAL INFORMATION FOR REFERENCE PURPOSES
Recent historical revenues from August 18 through the end of the year
2011 2012 2013
Revenue as of August 18th $ 1,668,944.00 $ 2,251,827.00 $ 2,350,628.00
Revenue at year end $ 2,884,790.00 $ 3,600,135.00 $ 3,931,900.00
New revenue from Aug 18 to yr end $ 1,215,846.00 $ 1,348,308.00 $ 1,581,272.00
100%**
2011 new added to 2014 actual* $ 4,038,448.00 $
2012 new added to 2014 actual* $ 4,170,910.00 $
2013 new added to 2014 actual* $ 4,403,874.00 $
less Trillium $300K
Percent of previous yrs new revenue
Dormi+c iced—I from A—iicr 1 R of rho crnrod %innr rhnr hnA n — ii— —nr C1 nnn nnn
2011 173,638.52
2012 439,071.24
2013 1,289,621.80
75%** 50%**
3,734,486.50 $ 3,430,525.00
3,833,833.00 $ 3,496,756.00
4,008,556.00 $ 3,613,238.00
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rp)2013 SURPLUS REQUESTS
Available surplus: $2,895,665
Surplus Funding
Request
1 Park Replacment to fund share of West Med retaining wall 700,000
2 Crosswalk signage 50,000
3 Street Reconstruction to fund flashing yellow turn signals ($251(per signal) -estimated 20 signals in 2014/2015 500,000
4 Tandem Axel Plow 223,000
5 Retaining wall repairs - back of City Hall 100,000
6 Public Works Expansion & Fuel management system replacement 1,000,000
7 Microfiche to Laser fiche project completion 130,000
81 Remainder to Street Reconstruction for Vicksburg project 192,665
TOTAL: 2,895,665
8/22/2014 Page 4
2B
rp)City of To: Mayor and Council
Plymouth
Prepared by: Luke Fischer, Administrative Services Director
Adding Q,0 to Life
MEMORANDUM Date: August 26, 2014
Item: Community Improvement Fund — Fund 404
The City of Plymouth has a strong history of careful and prudent fiscal management. As part of the 2015 budget
process, staff began a holistic review of the various funds maintained by the organization to determine where
resources were available to complete projects. One of the primary unbudgeted funds is the Community Improvement
Fund — Fund 404. This was established in 1993 as a funding source for capital items that have "sufficient community
wide benefit." This fund was created through a Charter provision and further defined in City Ordinance — creating a
high standard for use. General restrictions include:
Project should be included in the Capital Improvement Program.
The Council is required to conduct a public hearing and consider long range operating expense of the
project.
Expenditures in excess of $3 million must be approved by the voters.
Any project not receiving 5/7ths vote, but still earning a majority vote, can only receive funding through a
loan with certain restrictions.
Historically, funds were deposited into the Community Improvement Fund from surplus money or special assessment
collections that remained after an improvement project had been fully funded and the bonds settled. There are a few
remaining deferred assessments that may contribute revenue in the future, but the specific amounts are subject to a
variety of factors. Interest represents the only sustained revenue source for the fund, however it may be used as an
internal loan fund in the future — which provides an opportunity for new interest income. It should be noted that the
Playfield Park Lighting loan will continue to contribute $240,000 annually through 2020.
As referenced in the Debt Management Study, there are certain advantages to leveraging these types of funds to
internally finance larger projects that may come before the Council. In doing so, the City is able to capture a higher rate
of interest than it is earning at market and avoid issuance costs. This also ensures there are adequate resources
available for projects in the future.
Staff is completing a review of other funds that have cash available for upcoming projects and will report back to the
Council in the coming months.
Page 1
Projected
2010 2011 2012 2013 2014
Revenues:
Special Assessments 16,140 12,940 11,607 11,183 6,528
Interest on SA 89,285
Interest on Investments 28,827 92,988 56,562 84,493) 119,079
Interest from loan 61,624 56,248 50,712 45,009
Transfers -In 13,079
Total Revenue: 44,967 167,551 124,418 9,520) 259,902
As referenced in the Debt Management Study, there are certain advantages to leveraging these types of funds to
internally finance larger projects that may come before the Council. In doing so, the City is able to capture a higher rate
of interest than it is earning at market and avoid issuance costs. This also ensures there are adequate resources
available for projects in the future.
Staff is completing a review of other funds that have cash available for upcoming projects and will report back to the
Council in the coming months.
Page 1
Page 2
404 - Community Improvement Fund
Fund created: 1993
Established with Funds from prior matured Debt Service funds
Net current year: 237,661 (1,813,414) 290,419 433,697 314,291 (14,493) (1,304,059) 105,896 124,418 17,125) 1,140,098)
CASH
Projected
Beginning Cash Balance
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues:
A Playfield park lighting loan $2,054,131 over 10 years - final payment is 12/31/2020 -- annual payment of $240,806.85
Special Assessments 42,227 41,317 11,005 14,355 24,301 16,524 16,140 12,940 11,607 11,183 6,528
Interest on SA 5,118 2,482 5,914 89,285
Interest on Investments 190,316 199,786 301,975 419,497 284,076 66,689 28,827 92,988 56,562 84,493) 119,079
Interest from loan 61,624 56,248 50,712 45,009
Transfers -In 13,079
Total Revenue: 237,661 243,586 312,980 433,852 314,291 83,212 44,967 167,551 124,418 9,520) 259,902
Expenses:
Capital Transfers Out 2,057,000 22,561 156 97,705 1,349,026 61,655 7,605 1,400,000
Total Expenses: 2,057,000 22,561 156 97,705 1,349,026 61,655 7,605 1,400,000
Net current year: 237,661 (1,813,414) 290,419 433,697 314,291 (14,493) (1,304,059) 105,896 124,418 17,125) 1,140,098)
CASH
Beginning Cash Balance 8,636,049 6,815,348 7,087,187 7,535,929 7,866,515 7,870,732 6,576,949 4,799,783 5,110,037 5,280,678
Principal payment receiptA 190,095 195,798
Ending Cash Balance: 8,636,049 6,815,348 7,087,187 7,535,929 7,866,515 7,870,732 6,576,949 4,799,783 5,110,037 5,280,678 4,336,378
A Playfield park lighting loan $2,054,131 over 10 years - final payment is 12/31/2020 -- annual payment of $240,806.85
Page 3
Plymouth City Charter
Page 21
CHAPTER 6
ADMINISTRATION OF THE CITY
Section 6.01. City Manager.
Subd. 1. The city manager is the chief administrative officer of the city. The manager is
appointed by the city council solely on the basis of training, experience and executive and
administrative qualifications. With the approval of the council, the manager may designate some
properly qualified person to perform the duties of the manager during the absence or disability of
the manager. If the office of manager is vacant and no such designation has been made, the
council must appoint an acting manager.
Subd. 2. The city manager is appointed for an indefinite term and may be removed at any
time by an affirmative vote of a majority of the council. After having served for one year, the
manager may demand written charges and a public hearing before the council on the charges
prior to the date when the removal of the manager takes effect. The public hearing must be held
within 30 days of the manager's demand, and the written charges must be supplied to the manager
at least ten days prior to the hearing. After the hearing, if one is demanded, the council may either
reinstate the manager or make the removal final. Pending the hearing and removal, the council
may suspend the manager from office and appoint an acting manager. Prior to removal the
manager must be paid the manager's regular salary.
Subd. 3. The council must periodically review the manager's performance. The council and
the manager may enter into an employment agreement.
Section 6.02. Manager; Powers; Duties
Subd. 1. The manager is responsible to the council for the administration of the city's affairs.
The manager has the powers and duties specified in this section.
Subd. 2. The manager must assure that this charter, the laws and ordinances of the city and
the resolutions of the city council are enforced and carried out.
Subd. 3. The manager appoints officers and employees of the city on the basis of merit and
fitness, but the appointment and removal of the city attorney is subject to the approval of the
council. The manager may remove or suspend officers and employees of the city.
Subd. 4. Except as otherwise provided by this charter or law, the manager directs departments
and divisions of the city administration.
Page 4
Plymouth City Charter
Page 22
Subd. 5. The manager must attend meetings of the council. The manager may take part in
discussion at council meetings but may not vote. The council may exclude the manager from a
meeting at which the manager's removal is considered.
Subd. 6. The manager may recommend to the council measures deemed necessary for the
welfare of the people and the efficient administration of the city's affairs.
Subd. 7. The manager must keep the council fully advised on the financial condition and
needs of the city. The manager must prepare and submit the annual budget to the council.
Subd. 8. The manager must, as soon as practicable after the close of the fiscal year, submit to
the council a written report on the finances and administrative activities of the city. The
manager's report must be discussed by the council at a public hearing called for that purpose.
Subd. 9. The manager must prepare and amend from time to time an administrative code
setting out the administrative procedures of the city.
Subd. 10. The manager performs the other duties prescribed by law, this charter or by the
council.
Section 6.03. Departments.
With the approval of the council, the manager may create departments, divisions and other units
ofthe city administration consistent with this charter and law.
Section 6.04. Other Officers.
There must be a city clerk, a chief financial officer and such other officers subordinate to the city
manager as may be created by the council by ordinance or resolution or established by law. The
clerk is responsible for the keeping of city records. The clerk and other officers have the duties
imposed by state law, this charter, ordinances and council resolutions.
Section 6.05. Purchases and Contracts.
The manager is the chief purchasing agent of the city. Purchases and contracts may be made by
the manager when the amount of the purchase or contract does not exceed the amount at which
competitive bids are required by law. Other purchases and contracts are made by the council on
the recommendation of the manager. Except for purchases and contracts made by the manager,
contracts, bonds and instruments to which the city is a party must be signed by the mayor and the
manager on behalf of the city.
Section 6.06. Contracts; Bids.
Page 5
Plymouth City Code 321.01
Section 321 - Community Improvement Fund
321.01. Establishment of Fund. Pursuant to City Charter Chapter 7, Section 7.14, there is
established a fund to be known as "Community Improvement Fund."
321.03. Allocation of Monies to Fund. There shall be accumulated in such Community
Improvement Fund (1) surplus money from the various special assessment funds that remain
after the costs of each improvement project have been fully funded and bonds issued for the
project paid or defeased, and which money has not been transferred to another separate
improvement fund, (2) collections of special assessments received after an improvement project
has been fully funded and bonds issued for the project paid or defeased, (3) investment earnings
generated by the money in the fund, (4) any other money appropriated by the Council or donated
to the City for the purposes of the fund.
321.05. Use of Fund. Subdivision 1. Generally. The Community Improvement Fund
shall be used only when all of the following are met:
A. The project has sufficient community wide benefit as determined by its
intended uses, addresses a community need or problem, and is consistent with
other City goals, programs and policies.
B. The expenditure for the project is for an item of a capital nature.
C. The Council has conducted a public hearing on the project.
D. There has been an estimate prepared outlining the operating expenses and
proposed funding sources for the project for a five year period.
E. Expenditures for a project in excess of three million dollars have been
approved by a majority of the votes cast in a regular or special election.
Subd. 2. Expenditures requiring 5/7ths Council Approval. Upon meeting the
requirements of Subdivision 1, expenditures from the Community Improvement Fund shall
require at least five affirmative votes of the Council, but shall not require voter approval, if the
expenditure is for a project that has been included in the Capital Improvement Program for at
least the current year or is declared to be an emergency, e.g., an "Act of God" as that term is
defined by generally accepted business general liability insurance policies, and does not exceed
three million dollars for any site or project location.
Subd. 3. Expenditures requiring Majority Council Approval. Upon meeting the
requirements of Subdivision 1, expenditures from the Community Improvement Fund shall
require a simple majority votes of the Council, but shall not require voter approval, if the
expenditure:
Page 6
Plymouth City Code 321.05, Subd. 3
A. Is for a project that has been included in the Capital Improvement Program
for at least two years;
B. Is a loan from the Community Improvement Fund and must be repaid or is
made with the condition that no further expenditures from the Community
Improvement Fund shall be made until the principal is repaid plus 10 percent of
the investment earnings that would have been generated on the principal at the
previous amount; and
C. Expends a total amount ofprincipal not to exceed an amount equal to the
Community Improvement Fund's investment earnings from the previous two
calendar years prior to the expenditure, not to exceed three million dollars for any
site or project location.
Ord. 94-9, 5/16/94)
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rp)City of Agenda 2CPlymouthNumber:
Adding Quality to Life
SPECIAL
COUNCIL MEETING
August 26, 2014
To: Mayor and City Council
Prepared by: Dave Callister, City Manager
Item: Set Future Study Sessions
Review the list of pending study sessions and set meetings as desired. Calendars are attached to
assist with scheduling.
PENDING STUDY SESSION TOPICS
at least 3 Council members have approved the following study items on the list):
Public Works expansion and fuel management system replacement
OTHER REQUESTS FOR STUDY SESSION TOPICS
Re-evaluate Comprehensive Plan update process
City's role in economic development and redevelopment
Review hourly rate vs. participant rate for use of playfields (2016 budget)
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City of
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