CITY COUNCIL WORK SESSION MEETING AGENDA April 18, :30 6:30pm
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1 CITY COUNCIL WORK SESSION MEETING AGENDA April 18, :30 6:30pm 1) Call to Order 2) Hennepin County Assessor s Office Discussion 3) Surface/Storm Water Utility Fund Discussion 4) Adjourn
2 Work Session Item 2 Hennepin County Assessor Department Assessor Department , Phone A-2103 Government Center , Fax Minneapolis, Minnesota To: From: City of Minnetrista, Mayor and Council Kevin Wynn, CMA, Appraiser Date: April 11, 2016 Re: 2016 Open Book Meeting and Assessment Summary The 2016 Minnetrista Open Book Meeting has been scheduled for Wednesday, April 27, 2016 from 4:00 PM to 7:00 PM in the City Hall Council Chambers. As preparation for the upcoming Open Book Meeting, please find the enclosed data to help you. There is market data, an assessment fact sheet, procedures and sales photos with characteristics from a sample of sales throughout the city from the past few years. Summary of the 2016 Assessment Each year the estimated market values are analyzed along with sales data from the market. Appropriate adjustments for each property are made. The results of those adjustments, or property type growth, for the following property types are as follows: Residential- Off-Lake Residential- Lakeshore Townhouse Condominiums (Nike Strg) DB/Triplex Commercial/Industrial +7.6% (1731 parcels) +5.5% (573 parcels) +15.1% (82 parcels) +5.1% (185 parcels) +9.3% (2 parcels) +1.0% (5 parcels) There are 3564 taxable parcels in Minnetrista (up from 3424 in 2015) with a total market value of approximately $1,476,594,900 (up from $1,330,668,500 in 2015). This value increase includes $44,070,000 in new construction improvements. The overall value increase for the City of Minnetrista is +11.0%. The growth exclusive of new improvements, is +7.7%. 1
3 The Open Book appeal process Value notices will be mailed in mid to late March. Taxpayers with value or classification concerns should contact the assessor s office. During the initial conversation the property owner may discuss their concerns and review sales information with an appraiser. The majority of the callers are satisfied after a conversation with an appraiser. If additional attention is necessary the appraiser will review the property. In all but a very few cases (perhaps 100 out of almost 300,000 parcels in Hennepin County, excluding Minneapolis) the concerns are resolved through this process, but in the case where the property owner is unsatisfied with the outcome, they may appeal to the County Board of Appeal and Equalization. The County Board of Appeal and Equalization will begin meeting on June 13, All requests for appointments at the County Board must be received before May 18, To make an appointment, taxpayers should call If you have any questions or concerns, prior to the meeting or at any time, please contact me at (county cell phone). Sincerely, Kevin Wynn, AMA Appraiser Minnetrista, Spring Park, Medicine Lake and Wayzata Hennepin County Assessor Dept. 2
4 Work Session Item 3 CITY OF MINNETRISTA REQUEST FOR CITY COUNCIL ACTION/DISCUSSION Subject: Prepared By: Storm/Surface Water Utility Fund Discussion Brian Grimm, Finance Director Meeting Date: April 18, 2016 Item: Staff is bringing back some information regarding the Storm/Surface Water Fund and looking to have a discussion as to the funding of these activities and the costs of the fund also (whether operational or capital expenditures.) For example in 2015 per our preliminary financials for this fund, we brought in about $224,000 through our utility fee and had operational expenses of about $162,000. We had one time FEMA dollars stemming from our 2014 flooding of about $68,000 and about $138,000 of expenditures relating to capital activities (projects). As you can see we had roughly $300,000 for revenue and expenditure in 2015 including those one-time items. For 2016 we have about $127,000 budgeted for operating expenses and another $195,000 for CIP items. It is evident that even with adding a little to the $224,000 revenue we collected above for new properties completed in 2016 we will be at a deficit in the fund for 2016 if we do all the projects in the CIP at the amount they are budgeted for. This trend of more projects and expenditures in comparison to the revenue source is projected to continue for the next few years. You will see this in the attached financial management and CIP plan that was adopted in December 2015 for This brings us to the discussion tonight. There are basically a couple potential revenue items to discuss, taking another look at the multi-year CIP plan and looking at one time sources of funds in regards to surface water projects activity. Potential Revenue Items 1) Charge surface water utility fee to properties whether they have a structure on them or not Right now we charge our surface water utility fee for properties if they have a structure on them. If they don t, we do not charge the fee. There are potentially hundreds of parcels out there that this would apply to. Whether they would be parcels platted in Red Oak or Woodland Cove or Ag parcels. Using a rough estimate of 400 parcels would bring in another $35,000 a year into the fund. Mission Statement: The City of Minnetrista will deliver quality services in a cost effective and innovative manner and provide opportunities for a high quality of life while protecting natural resources and maintaining a rural character.
5 Could be more, or could be less once the City would do a detailed analysis of how many exactly are out there. 2) Look at using a land use classification and factor for the utility fee Some Cities have gone to this method of charging a different factor or rate for commercial, agricultural or other types of zoned classification from residential. The rationale behind this is to match up the fact that agricultural and commercial properties contribute to storm/surface water run-off and phosphors counts for example at a higher rate than your standard residential property. If this is something the Council would want to look at during a subsequent meeting we could bring back more information regarding it. Expenditure items 1) Storm/Surface Water CIP plan Continuing to revise our plan annually or as needed is going to be the best way to try and manage the costs in these funds. If things change where a project is deemed not necessary, as high priority or even feasible, it can be removed from or moved later into the list. Staff would continue to encourage doing projects that look to solve things more regionally and globally. Projects that have the most effect on multiple properties and areas instead of spending our limited resources on a project that may only effect one property. I have attached the current listing. One Time Revenue/Financing Sources 1) Grants Most of the projects in our CIP plan have a very slim or no chance of qualifying for grant dollars. There is heavy competition for them region wide and the projects usually need to have a large impact on a large area. Therefore we can t count at them at the City level and would apply for them only if we feel there is a legitimate chance that a project would qualify. 2) Transfers from other funds within the City This would be something that staff would not recommend as an ongoing way to take care of these projects. The surface water fund is supposed to be a self-supporting enterprise fund through the utility fee. By transferring from other funds, (such as the general fund) it is in direct competition with allocating that money for additional road work, capital items, etc. Recommended City Council Action: Staff is looking to have a discussion on the Storm/Surface Water Management Fund and any feedback/direction the Council may have regarding revenue or expenditure topics/items Does Recommended Action meet City Mission Statement? x Yes No Does Recommended Action meet City Goals/Priorities? x Yes No Mission Statement: The City of Minnetrista will deliver quality services in a cost effective and innovative manner and provide opportunities for a high quality of life while protecting natural resources and maintaining a rural character.
6 Explain: To address infrastructure needs and to address mandates regarding environmental issues (water quality). To properly fund these enterprise fund activities in the Surface/Storm Water Fund. Mission Statement: The City of Minnetrista will deliver quality services in a cost effective and innovative manner and provide opportunities for a high quality of life while protecting natural resources and maintaining a rural character.
7 1 City of Minnetrista, MN 2 Storm Water Fund 3 Operating Cash Flow 4 Fund Assumptions: 7 Expense increase 2.00% 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 8 Investment Rate 3.00% 3.00% 2.00% 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 9 Storm Water Rate Increase % % 0.00% 3.00% 3.00% 10.00% 10.00% 10.00% 10.00% 5.00% 5.00% 2.00% Cash Flow Statement Actual Budget Actual Budget Actual Budget Projected Operating Revenue 15 Charges for Services - future residents - 8,475 8,255 8,555 8,865 8,812 9,076 9, Charges for services - existing customers 94, , , , , , , , , , , , , Total Revenue 94, , , , , , , , , , , , , Operating Expenses (excluding depreciation) 20 Personal services 38,478 52,268 21,959 38,682 24,076 45,709 47,080 48,493 49,947 51,446 52,989 54,579 56, Supplies 2,287 2, , ,100 2,163 2,228 2,295 2,364 2,434 2,508 2, Professional Services 13,363 32,500 54,581 37,500 54,379 37,000 38,110 39,253 40,431 41,644 42,893 44,180 45, Repairs and Maintenance 36,334 21,400 19,244 25,000 17,648 27,000 27,810 28,644 29,504 30,389 31,300 32,239 33, Utilities Depreciation 104, , , , , , , , , , , , , Dues and Subscriptions ,701 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14, Other 2,823 7,000 3,509 5,600 2, Total Operating Expenses 198, , , , , , , , , , , , , Net income from operating activity (103,924) (36,332) (27,943) (33,882) (33,093) (18,811) 4,282 29,960 59,015 91, , , , Non Operating Revenues/(Expenses) 33 Investment Income 983 1,000 1,186 1,000 3,872 3,597 6,328 1,862 2,687 1,965 1,564 5,876 12, Other 10, Transfers In 36 Transfers Out 37 Total Non Operating Revenues/(Expenses) 983 1,000-1,000 3,872 3,597 6,328 1,862 2,687 1,965 1,564 5,876 12, Capital/Operating Expenses for Storm Water Improvements 46 Bond Proceeds 47 Capital Improvement Projects (159,500) (194,700) (125,000) (125,000) (250,000) (50,000) - (250,000) 48 Halstead Bay Project - Annual Operating Expenses and other new operational - (52,200) (79,500) (47,500) (82,500) (57,500) (47,500) (62,500) (62,500) 51 Total Capital Expenses (inlcuding operations (211,700) (274,200) (172,500) (207,500) (307,500) (97,500) (62,500) (312,500) 52 expenses related to potential Halstead Bay Project) Annual Change (102,941) (35,332) (27,943) (32,882) (29,221) (226,914) (263,590) (140,678) (145,798) (213,725) 14,582 73,961 (160,685) Beginning Cash Balance 44,877 59,626 59, , , , ,927 62,073 89,573 65,499 52, , , Add net operations (line 30) (103,924) (36,332) (27,943) (33,882) (33,093) (18,811) 4,282 29,960 59,015 91, , , , Add back depreciation (line 25) 104, , , , , , , , , , , , , Add net non operating (line 37) 983 1,000-1,000 3,872 3,597 6,328 1,862 2,687 1,965 1,564 5,876 12, Add capital and bond (lines 51) (211,700) (274,200) (172,500) (207,500) (307,500) (97,500) (62,500) (312,500) 61 Net change in balance sheet items 12,838 (11,138) Transfer from general/other funds 50,000 50,000 75, Ending Cash Balance 59, , , , , ,927 62,073 89,573 65,499 52, , , , Cash Balance without doing capital expenses/projects 197, , , , , ,399 1,050,550 1,291,769 1,561,240 1,850, (taking out line 51) 66 DRAFT - FOR DISCUSSION ONLY Storm Water Fund 11/25/2015
8 Surface Water CIP - Operating Fund xxx Project NPDES/MS4/General Stormwater Consultant Services Halstead Bay / 6 mile Marsh surface water treatment plant Culvert replacement program (MAY NEED TO INCREASE ) Street Sweeping Program (50% of total budget is allocated to the Street Maintenance Budget) Storm Water Pond Maintenance Program Replace 2007 Skid Steer Loader Replace 1997 Ford/New Holland 675E Tractor Backhoe (⅓ each - Storm water / Sewer / Water CIP) Total Cash $17,200 $7,500 $7,500 $7,500 $17,500 $7,500 $7,500 $7,500 $7,500 $17,500 $7,500 $7,500 $7,500 $7,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $15,000 $15,000 $15,000 $15,000 $15,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $20,000 $20,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $35,000 $32,000 $52,200 $79,500 $47,500 $82,500 $57,500 $47,500 $62,500 $62,500 $67,500 $77,500 $67,500 $67,500 $67,500 $67,500 Total Inflated CIP Expense Inflation Rate Surface Water CIP - Surface Water Improvement Fund xxx Project 6380 Painters Cir - Inlets not open and CB's are shot. Cross pipe has heaved the road. This has back-up water into 6380 Painters Cir property. CB's need to be rebuilt and new cross pipe installed between them. Addition of Styrofoam over crossing pipe will help with frost heaves. Water flow direction - south CB to north CB to outlet. North side CB also has inlet from north side drainage flowing west. Concrete to be installed around rebuilt CB's 200 Ingerson Rd - Install new culvert under south side driveway to capture water flow and direct it towards the north to existing culvert under north driveway leading to crossing culvert just past the north driveway. North driveway culvert will need to be jetted clear. Kristen Ln & Cty Rd 92 - CB's back plates have fallen and existing BT is considerably higher then grate due to past patching. CB's need to be rebuilt. Concrete to be installed around rebuilt CB's Lakeview Dr HOA out lot - Street storm water drainage through HOA property does not drain properly. Drainage way need to be redone. (Woodend HOA) 1350 & 1360 Morningview Dr - Storm water runoff has caused a large washout area along property line from Morningview Dr to lake. Reconstruct drainage way. (Hoffman) Game Farm Road south of Kingswood Road - Storm water runoff washout of the shoulder on west side. Install concrete curb for approx. 350 feet and outlet to rock riprap area $15,000 $7,000 $7,000 $5,000 $100,000 $9,500 CB reconstruction - Loring Drive low point $8,000 Deer Creek Road Culvert Replacement $60,000 Lake Minnetonka Regional Park - Ravine Restoration - 3RPD Cooperative Agreement $30, Dutchview Rd - Install new culvert from east side of driveway to west side of Dutchview Rd. BT will have to be removed from driveway and replaced. $6, Dutchview Rd - Replace rusted out culvert and clear trees and shrub debris from inlet and outlet areas. $5, & 5615 Kramer Rd - Water from sump pumps flows down curb line and causes green algae/slime to form causing safety concern. Also causes large ice dams to form in winter. Install drain tile behind curb from west property line of 5615 to CB to intersection of Kramer Rd & Cty Rd 110 N. Dutchview Rd drainage - Add rock to east side of road to force water to the west. Redo west ditch to get water to flow into drainage outlet. Also, redo the drainage on east side of Dutchview Rd and divert the drainage into the woods prior to 2000 Dutchview Rd. $8,000 $15,000
9 810 Cty Rd 110 N - Storm water runoff has caused a large washout area along property line from culvert outlet by 151 to lake. Redo drainage to lake. $25,000 Jennings Cove Park - Pond overflows and floods home located at 1040 West Cove Ln. Expand pond Hardscrabble Circle Erosion issue Project Game Farm Rd at Cty Rd 26 - Storm water runoff washout horse trail on east side of road.install berm and catch basin with piping down the hill or install asphalt trail at this location (would have to add white fog line stripe along trail if paved for safety). Increased runoff with Large Pole Barn & 1250 Morningview Drive storm sewer replacement - Storm sewer has collapsed and needs to be replaced. $53, $75,000 $50,000 $50,000 Create outlet to landlocked basin near Co. Rd 151 and Apple Garden Road $75,000 Improve and repair storm water system along Cardinal Cove and Halstead Avenue $250,000 Repair storm sewer system at Enchanted Lane near Phelps Bay $50,000 Implement phosphorus reduction plan - Project 1: Painter Creek/Jennings Bay watershed $150,000 Complete water quality protection project at Little Long Lake $100,000 Implement phosphorus reduction plan - Project 2: Dutch Lake watershed $132,000 Increase drainage capacity on Marywood going east to and along park to Tuxedo $75,000 Implement phosphorus reduction plan - Project 3: Sauders Lake watershed $100,000 Implement phosphorus reduction plan - Project 5: Six Mile Marsh watershed $185,000 Raise Enchanted Lane at 3850 (Groat) - $100,000 should be part of road improvement project 6130 Hillsdale Dr - Ditches and culverts filled with rock. Ditches and culverts need to be cleaned and the road needs to be re-graded and shaped to allow water to flow into the ditches properly. ($20,000) COMPLETED 4390/4400 Trillium Lane West - Restoration of erosion of drainage way between the lots. Repair storm sewer outlet with drop MH and install new outlet and pipe. Restore drainage way with vegetation and rock. (4405 and 4395??) (FEMA reimbursement) $75,000 Implement phosphorus reduction plan - Project 6: Mud Lake watershed Total $159,500 $194,700 $125,000 $125,000 $250,000 $50,000 $0 $250,000 $0 $132,000 $75,000 $100,000 $0 $185,000
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