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Home My WebLink AboutCity Council Packet 08-23-2016 Special Special Council Meeting 1 of 1 August 23, 2016 CITY OF PLYMOUTH AGENDA SPECIAL COUNCIL MEETING AUGUST 23, 2016, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM 1. CALL TO ORDER 2. TOPICS A. Budget/CIP B. Set future Study Sessions 3. ADJOURN STUDY SESSION August 23, 2016 Agenda Number: 2A To: Dave Callister, City Manager Prepared by: Luke Fischer, Administrative Services Director Item: 2017 Budget Follow Up (Meeting 2) The City Council met in a Study Session on August 16 and completed a preliminary review of the proposed 2017 Budget. At that meeting, staff presented a budget that focused investment on the City’s public safety needs, ensured service demands were met, and was balanced. This proposal carried a 4.9% General Levy increase in 2017. At that meeting, the Council provided input on the overall budget and requested additional information in certain areas. This memo summarizes the adjustments made and responds to open questions from the meeting. General Fund Levy: Following the City Council study session, adjustments were made that have increased the proposed levy from 4.9% to 5.44%. The General Fund expenditures increased by 3.5% and of that amount, 80% is for the investment in public safety operations. Of the 5.44% levy increase, approximately 3.46% is for general operations and 1.98% is for new public safety personnel and related expense. Staff continues to review the budget and look for adjustments that can be made. Ice Center Snow Plowing: Currently, the Ice Center’s snow plowing is funded through the Parks and Forestry budget. This has been the practice since the building was constructed. The estimated value of the work for the entire facility (PIC and Lifetime) is estimated at $40,000 per year – though the actual expense incurred will vary, depending on snowfall events and totals. Staff estimates about half of the plowing expense is attributable to the PIC and half to Lifetime. The City’s agreement with Lifetime requires that the City manage snow removal at the site. As such, this is a clear General Fund expense. The General Fund could charge the PIC back for its portion of snow removal – but that would require annual tracking and calculation of expense incurred. The administrative expense to tracking and billing back is inefficient for the de minimis impact on the General Fund. Staff recommends no change to this practice. HRA Professional Services: The Professional Services line item is proposed to increase from $10,000 to $14,388. Two items have been rolled up to this line item. 1) In the past, general professional services has consisted of consultants and legal expense at a budget of $10,000 per year. These services are proposed to be reduced to $9,388. 2) In 2017, staff proposes adding $5,000 for an Energy Squad Enhanced program. The Home Energy Squad Enhanced program is a collaboration between Center Point Energy, Xcel Energy, The Center for Energy and Environment and cities that wish to participate. The HRA began participating in this program in the spring of 2015 as a pilot program with the idea that if it was successful and provided an added benefit to Plymouth residents that the HRA would continue participating in the program. Page 1 The program visit costs $100 and residents who wish to participate pay $70 with the remaining $30 covered by the HRA. Each visit provides the homeowner with an energy audit of their home including air leak test, insulation inspection, and the installation of energy saving materials such as programmable thermostats, weather stripping, water heater blanket and high efficiency light bulbs. After the visit, the homeowner receives a detailed report that identifies potential improvements and repairs that can be made to make their home even more energy efficient that would result in lowering their energy costs. In May of 2016, the HRA Board of Commissioners reviewed the program results and determined that it was a worth wile program and they would begin funding it on an annual basis through the budget process. The funds will come from the HRA General Fund reserves so there is no impact on the HRA levy or the citizens of Plymouth. Attached is the staff report and survey results from the program that was presented to the HRA Board in May. HRA Specialist - .75 to 1 FTE: This is a position that is funded through HUD resources, independent of the HRA or General fund levies. At the beginning of 2015, this was a full time position that was scaled back with a resignation with the hope of fulfilling a full position with a .75 position. With this change, workloads have shifted onto the support services manager – which has been particularly taxing in the department with the current pace of construction and new requirements from HUD. Full time Firefighter Pay Range: The table below provides 2016 pay ranges for full-time firefighters. Note that Richfield and Shakopee are not typical comparisons, however, as metro-area cities with full-time fire departments, their pay ranges are provided as additional points of reference. These were also selected due to geographic proximity to Plymouth. Organization Pop Region # of Emp Job Title Range Minimum Range Maximum Longevity/ Specialty Max Richfield 33,859 Metro 18 Firefighter $61,234 $75,709 $80,630 Shakopee 39,167 Metro 4 Firefighter $57,054 $71,323 St. Louis Park 46,293 Metro 12 Firefighter $60,499 $73,555 $79,366 Burnsville 61,747 Metro 27 Firefighter $54,276 $72,540 $77,255 Coon Rapids 63,162 Metro 22 Firefighter $50,523 $72,188 Woodbury 68,725 Metro 9 Firefighter/EMT $57,932 $75,252 $84,038 Brooklyn Park 78,362 Metro 23 Firefighter $50,902 $70,004 $72,793 Average $56,060 $72,939 $78,816 Plymouth 74,592 6 Firefighter/CSO $ 57,918 $ 74,464 N/A Firefighter Scheduling: During the study session, staff referenced broader standards for the number of hours a full time firefighter may be able to work in a 28 day period. Pursuant to the Fair Labor Standards Act, public employees who are engaged in fire protection may be paid overtime on a “work period” basis, rather than the typical 40-hour workweek. A “work period” may be from seven consecutive days to 28 consecutive days. Overtime compensation is required when an employee’s hours worked in a work period exceed the maximum hours outlined in an FLSA formula. For example, Plymouth’s policy states that full-time, regular fire personnel are paid overtime after they have worked more than 212 hours in a 28-day period. Page 2 Fire Department Staffing: During the study session, the Council expressed an interest in proceeding with three full time firefighters (beginning January 1) and three full time firefighters (beginning July 1). At this point in the year, this is the soonest additional staffing could be added – based on hiring and background timelines. This adds three full time firefighters plus related duty crew wages six months sooner than considered in the previously presented budget. This carries a $168,242 impact in 2017 and $367,981 in 2018. This adds .54% to the General Fund Levy in 2017. Street Sweeping: The Council expressed an interest in adding $100,000 to the Water Resources budget for street sweeping. At this point in time, staff anticipates using Water Resources fund balance to pay for this additional service and would not recommend an adjustment to rates at this time. Staff will monitor the effectiveness of this program and report back to the Council, if implemented. Surplus: The Council requested information about which items in the 2015 Surplus recommendation are new and which were contained in a previous CIP. All items, with the exception of the Administrative Office Remodel, were previously planned and included in the CIP. It should be noted: none of the proposed surplus items are shown in the 2017 CIP because the projects would be completed or authorized in 2016. 2016 Contingency: The City budgeted $350,000 in 2016 with the intent of hiring three fulltime firefighters beginning in July of an estimated cost of $150,000; the remaining amount was a general contingency for unforeseen costs. Due to timing, these hires will not be completed until January 2017 and staff has elected to address equipment needs that have been identified in the Public Safety transition. All of the fire equipment that is planned to be replaced with the contingency funding is in a critical place of disrepair and would have been included in the 2017 operational budget. The Park and Forestry improvements that are planned to be funded out of the general contingency would have been included in the 2017 operational budget if these funds were not available in 2016. Page 3 CITY OF PLYMOUTH PROPERTY TAX LEVIES Levy Type 2013 2014 % Increase / Decrease over 2013 2015 % Increase / Decrease over 2014 Proposed 2016 % Increase / Decrease over 2015 Proposed 2017 % Increase / Decrease over 2016 Levy Base General Fund Base 23,466,633 23,973,179 24,347,000 1.56% 25,278,373 3.83% 26,861,753 6.26% Street Reconstruction 2,766,605 2,849,603 2,906,595 2.00% 2,964,727 2.00% 3,024,021 2.00% Recreation Fund 559,480 567,604 571,989 0.77% 601,665 5.19% 631,674 4.99% Park Replacement 330,000 339,900 346,698 2.00% 353,632 2.00% 360,705 2.00% Capital Improvement Fund 391,432 403,175 411,239 2.00% 419,463 2.00% 427,853 2.00% Total Levy Base 27,514,150 28,133,461 2.25% 28,583,521 1.60% 29,617,860 3.62% 31,306,006 5.70% Special Levies GO 2004A/2012A Public Safety 601,053 565,793 566,003 0.04% 563,903 -0.37% 561,488 -0.43% GO 2007A Open Space 253,255 252,205 250,958 -0.49% DEFEASED GO 2010A Open Space 265,716 267,291 263,511 -1.41% 268,341 1.83% 267,606 -0.27% 2015A Open Space 150,000 261,522 74.35% 268,347 2.61% Total Special Levies 1,120,024 1,085,288 -3.10% 1,230,472 13.38% 1,093,766 -11.11% 1,097,441 0.34% TOTAL CITY LEVY 28,634,174 29,218,749 2.04% 29,813,993 2.04% 30,711,626 3.01% 32,403,447 5.51% HRA Levy 551,277 551,277 551,277 561,277 571,379 TOTAL LEVY $29,185,451 $29,770,026 2.00% $30,365,270 2.00% $31,272,903 2.99% $32,974,826 5.44% Page 4 Tax Impact for Proposed 2017 Tax Levy increase of 5.44% Residential Property (Single family detached property) Estimated Estimated Percentage 2016 2017 Increase Increase Lower quantile $253,140 $262,000 value increase of 3.5% Tax based on tax capacity $652 $671 Tax based on market value $13 $13 HRA Property Tax $12 $12 Total Net Property Tax $678 $696 $18 2.61% Estimated Estimated Percentage 2016 2017 Increase Increase Average value $338,164 $350,000 value increase of 3.5% Tax based on tax capacity $906 $930 Tax based on market value $18 $17 HRA Property Tax $17 $17 Total Net Property Tax $940 $964 $23 2.47% Page 5 Estimated Estimated Percentage 2016 2017 Increase Increase Upper quantile $415,459 $430,000 no exclusion for properties over $413,800 Tax based on tax capacity $1,135 $1,161 value increase of 3.5% Tax based on market value $22 $21 HRA Property Tax $21 $21 Total Net Property Tax $1,179 $1,203 $25 2.09% Commercial Property Estimated Estimated Percentage 2016 2017 Increase Increase On a $1,000,000 Property $943,396 $1,000,000 value increase of 6% Tax based on tax capacity $3,162 $3,389 Tax based on market value $50 $50 Total Property Tax $3,212 $3,438 $226 7.05% Page 6 SPECIAL COUNCIL MEETING August 23, 2016 Agenda Number: 2B To: Mayor and Council Prepared by: Dave Callister, City Manager Reviewed by: Item: Set Future Study Sessions Pending Study Session Topics (at least 3 Council members have approved the following study items on the list): None at this time. Other Council requests for Study Session Topics: Schedule board and commission interviews – December 6th at 6 p.m. (suggested date). Page 1 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 September 2016 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE (EQC) MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION (PRAC) MEETING Park Maintenance 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT Modified on 07/14/16 CHANGES ARE MADE IN RED LABOR DAY CITY OFFICES CLOSED 5:30 PM SPECIAL COUNCIL MEETING Update on Mill and Overlay Program Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 5:30 PM SPECIAL COUNCIL MEETING Review Section 530 of the City Code (tree preservation) Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 11:30 AM - 3:00 PM Plymouth on Parade Celebration City Center Area CHACHANGES ARE MADE IN REDNGES Page 2 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 October 2016 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 5:30 PM SPECIAL COUNCIL MEETING DNR Required Flood- plain Regulations Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE (EQC) MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION (PRAC) MEETING Plymouth Ice Center 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT COLUMBUS DAY Observed 5:30 PM SPECIAL COUNCIL MEETING Utility rate study Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Modified on 04/13/2016 CHANGES ARE NOTED IN RED 7:00 PM PLANNING COMMISSION MEETING Council Chambers 30 31 6:30 PM City Volunteer Recognition Event Plymouth Creek Center CHA CHANGES ARE MADE IN RED 6:00 - 8:30 PM Halloween at the Creek Plymouth Creek Center Page 3 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 November 2016 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 5:30 PM SPECIAL COUNCIL MEETING Budget/CIP Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE (EQC) MEETING Medicine Lake Room THANKSGIVING HOLIDAY 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers SUN TUES MON WED THUR FRI SAT THANKSGIVING HOLIDAY CITY OFFICES CLOSED CITY OFFICES CLOSED Modified on 04/13/2016 CHANGES ARE NOTED CHACHANGES ARE MADE IN RED VETERANS DAY Observed CITY OFFICES CLOSED Daylight Savings Ends Set Clocks Back 1 Hour ELECTION DAY Polls open 7:00 AM to 8:00 PM Plymouth Arts Fair Plymouth Creek Center Plymouth Arts Fair Plymouth Creek Center 10:00 AM - 3:00 PM ABSENTEE VOTING ABSENTEE VOTING Until 5:00 PM Page 4 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 December 2016 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PARK & REC ADVISORY COMMISSION (PRAC) MEETING Council Chambers CHRISTMAS DAY CITY OFFICES CLOSED 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT Modified on 12/29/15 CHACHANGES ARE MADE IN RED NEW YEAR’S EVE 7:00 PM CHARTER COMMISSION ANNUAL MEETING Medicine Lake Room 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE (EQC) MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 2:00 - 5:00 PM Old Fashioned Christmas Plymouth Creek Park 6:00 PM - 9:00 PM New Years Eve Event Plymouth Ice Center Page 5