HomeMy Public PortalAbout06.16.2015 City Council Special Meeting PacketMEDIIVA
SPECIAL MEETING AGENDA
MEDINA CITY COUNCIL
Tuesday, June 16, 2015
6:00 P.M.
Medina City Hall
2052 County Road 24
I. Call to Order
II. Proposed 2016 Hamel Fire Budget (10 minutes)
III. Mediacom Build -out Summary (10 minutes)
IV. 2016 Budget Discussion (40 minutes)
V. Adjourn
Posted 6.12.201 S
MEMORANDUM
TO: Medina City Council
FROM: Scott Johnson, City Administrator
DATE OF REPORT: June 10, 2015
DATE OF MEETING: June 16, 2015
SUBJECT: June 16, 2015 Work Session — 6:00 PM
Work Session 6:00 PM
Proposed 2016 Hamel Fire Budget (10 minutes)
Attached is the proposed 2016 Hamel Fire Department Budget. Chief Ruchti and staff will be
present at the meeting to provide information and answer questions on the proposed budget.
Mediacom Build -out Summary (10 minutes)
Staff recommends that the City Council review the proposed construction map and provide any
comments. Staff would further recommend that the Council not yet approve the construction
plans and direct staff to work cooperatively with Mediacom representative to reach mutual
agreement on the construction plans.
2016 Budget — General Fund (40 minutes)
Staff will present information on the proposed general fund budget for 2016. Staff is proposing a
7.8% increase for total debt service and capital levies. This includes a 6.5% increase for the
general fund levy. However, the increases are off -set by the property value increases in Medina
(approximately 7.5% increase for 2016). The proposed 2016 tax rate for Medina is 23.64%. The
proposed tax rate is a 0.3% increase from 2015. Information has also been included on
connection fees for 2016. Staff is requesting Council review and feedback on the proposed
General Fund Budget.
Hamel Volunteer Pre Department
92 HAMEL ROAD • HAMEL, MN • 55340
April 28, 2015
TO: Ed Belland, Police Chief/Public Safety Director, Mayor, City of Medina
Re: Proposed 2016 Budget Submissions for Hamel Fire
Chief Belland
Per the terms of our service contract, attached is the initial submission (proposed) of the
2016 Operating Budget and Capital Plan for the Hamel Volunteer Fire Department. In
accordance with the contract terms we look forward to reviewing the details and
composition of all items with the Fire Advisory Board at your earliest convenience.
These proposed financial plans are specifically targeted on delivering the services
contemplated by the service contract. There is no consideration, provision or coverage
for any efforts or activities that might arise or come about as a result of the preliminary
discussions between the Hamel Fire Department and Loretto Fire Departments being
undertaken specifically at the City of Medina's request.
As such, a separate funding mechanism will need to be considered and implemented by
Medina if any such actions are considered. Given the early stages of discussions, it is
not possible to provide any guidance as to the magnitude of that funding. Ultimately,
however, but we assume that Medina's selected facilitator will be responsible for
securing the required funding sources to support this effort.
Sincer
Y,s
uchti, Fire ief
Hamel Volunteer Fire Department
Serving Medina Minnesota and the Neighboring Communities
HFD Proposed 2016 Operations Budget
2015
Budget
Proposed
1 2016
Budget
Delta
Comments
ADMIN
12,500
12,500
-
DEBT SERVICE BLDG
7,800
7,800
-
DUES & SUBSCRIPTIONS
2,000
2,000
-
EQUIPMENT
10,000
10,500
500
FIRE PREVENTION
1,500
2,000
500
FUEL
6,000
6,500
500
INCIDENT CONSUMABLES
2,000
2,000
-
INSURANCE
19,000
19,000
-
PAYROLL WAGES
60,000
61,000
1,000
PAYROLL TAXES (UI/FICA)
4,000
4,000
-
RADIO/COMM EXPENSES
12,215
13,215
1,000
RELIEF (PENSION)
35,000
35,500
500
EQUIP MAINTENANCE
29,900
30,500
600
TRAINING TOTAL
17,000
17,000
-
UTILITIES TOTAL
9,200 9,700
500
ANNUAL OPERATING EXPENSE
228,115 233,215
5,100
Reimbursements (primarily Training)
Interest
Department Fundraising
Public Donations
NON -FEE FUNDING
Medina Fees (Operations)
TOTAL FUNDING
4,000
1,000
26,000
2,000
33,000
4,000
1,000
25,000
1,000
(1,000)
(1,000)
31,000 (2,000)
195,115 I 202,215 I 7,100
228,115
State Training Reimbursements
Combination of Rodeo/Gambling
l
233,215 5,100
Page 1 of 1 Created: 4/30/2015
Hame Fire Department Capita Equipment P an .... Proposed 2016 Capita Budget
Equipment
Capital Cost
(A)
Other
Sources
(B)
Medina
Funded Capital
(A-B)
Type
Year of
Acq
Term
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Lucas Tool
14,000
6,500
7,500
C
2014
1
7,500
Ongoing PPE Replacment
10,000
0
2014
15
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
ThQrnla:1 ter,nr; Ciee%ern
5,000
5,000
C
2014
1
5,000
Hose - 1.75" & 2"
6,000
6,000
C
2014
1
6,000
AEDs
6,000
6,000
C
2015
1
6,000
Duty pfileer Vehiclo
15,000
15,000
C
2015
1
15,000
Danger Vehicle,
25,000
25,000
F
2014
1
25,000
Utility 11
overhaul/retrofit
65,000
65,000
C
2018
3
21,667
21,667
21,667
Command Vehicle
Replacement
20,000
20,000
F
2017
5
4,320
4,320
4,320
4,320
4,320
Engine 1.1 Refurt,shment
100,000
100,000
C
2023
5
20,000
20,000
20,000
20,000
20,000
Pumper/Tankci
450,000
450,000
F
2015
15
38,917
38,917
38,917
38,917
38,917
38,917
38,917
38,917
38,917
38,917
38,917
Light Rescue Replacement
200,000
200,000
F
2024
15
17,296
17,296
PROPOSED: CAPITAL CONTRIB
60,000
60,000
70,000
73,000
73,000
73,000
73,000
73,000
73,000
73,000
73,000
73,000
CARRYOVER (prior year)
-
11,500
6,583
6,000
4,096
2,193
1,957
1,720
1,483
5,567
9,650
16,437
PURCHASED or RESERVED
48,500
64,917
70,583
74,903
74,903
73,237
73,237
73,237
68,917
68,917
66,213
66,213
YEAR-END BALANCE
11,500
6,583
6,000
4,096
2,193
1,957
1,720
1,483
5,567
9,650
16,437
23,223
ANNUAL PURCHASES
53,500
261,000
10,000
30,000
75,000
10,000
10,000
10,000
10,000
110,000
210,000
10,000
MEMORANDUM
TO: Mayor Mitchell and Members of the City Council
FROM: Dusty Finke, City Planner; through City Administrator Scott Johnson
DATE: June 11, 2015
MEETING: June 16, 2015 City Council Worksession
SUBJ: Mediacom Build -out Summary
Background
On May 12, 2015, representatives from Mediacom submitted a map purporting to identify
approximately 5 miles of cable infrastructure that they propose to construct in 2015 pursuant to
the franchise agreement with the City (copy attached for reference).
According to the franchise: "...Grantee shall construct and activate...6.46 miles [of Cable
System] in the first 12 months after the Effective Date of this Franchise...5 miles in the second
12 months...5 miles in the third 12 months..."
The franchise continues that "[Mediacom] shall submit its construction plans to City as soon as
practicable after the Effective Date of this Franchise, showing the schedule and route for each of
the 5 mile segments. City shall have 30 days to review, comment on and approve the
construction plans. Such approval shall not be unreasonably withheld and the parties shall work
cooperatively to reach mutual agreement on the construction plans."
Mediacom did not submit plans for the 2014 construction and did not submit plans for remaining
construction on May 12. Staff requested the full construction plans as well as as-builts for
construction which occurred in 2014. City staff informed Mediacom on May 27, 2015 that
incomplete construction plans had been submitted and that the 30 day review timeframe would
not begin until all construction plans have been submitted.
On Wednesday, June 3, 2015, Mediacom submitted additional information, including a map
purporting to identify approximately 5 miles of cable infrastructure that they propose to construct
in 2016.
Mediacom Proposed Construction
The attached map approximates the system already in place and identifies properties which are
unserved with high-speed intern& either through Mediacom or CenturyLink. Mediacom's
proposed 2015 and 2016 construction is also highlighted on the map.
The proposed construction can be divided into two types: 1) lines along public/private streets or
within public easements which feed multiple homes; 2) lines which Mediacom calls "laterals"
which are located outside of rights -of -way or easements to serve individual (or in some rare
cases, multiple) homes.
For the sake of reference, the relative length of these types is summarized below:
Mediacom Build -out
Page 1 of 2 June 16, 2015
Summary City Council Worksession
2015 Proposed
2016 Proposed
Public/Private Streets
2.66
2.51
Lateral -Shared
0.29
0.64
Lateral -Individual
1.6
1.74
Total Laterals
1.89
2.38
Total Mileage
4.55
4.89
**1.39 miles of 2015 laterals are first 500 feet
**1.21 miles of 2016 laterals are first 500 feet
The proposed construction covers a substantially smaller portion of the City than staff would
have anticipated. The Franchise states that the City and Mediacom can share the cost for an
additional 15 miles of cable system to serve more residents. For informational purposes, staff
investigated how many additional miles of cable along public/private streets would be necessary
to serve all homes. It appears that approximately 20.25 miles would be necessary, and that the
15 cost share miles may be able to serve all but 22 homes.
Potential CAF Expansion
Another factor which may warrant consideration is the fact that CenturyLink has received an
award for funding through the federal Connect America Fund (CAF) to construct broadband in
the state of Minnesota. Much of Medina was included in their CAF application.
CenturyLink needs to accept the funding throughout the entire state (hundreds of miles of
expansions with multi -millions of grant dollars) or the various portion of the state go out to an
auction which may take years.
CenturyLink has until the end of August to decide whether to accept the award. Recipients of
CAF have up to six years to construct the projects, but indications are that Medina would likely
be relatively early.
The portion of the City which was part of the CAF application is highlighted in the map as well.
Council Review Requested
Staff recommends that the City Council review the proposed construction map and provide any
comments. Staff would further recommend that the Council not yet approve the construction
plans and direct staff to work cooperatively with Mediacom representative to reach mutual
agreement on the construction plans.
Attachments
1. Franchise
2. Proposed construction map
Mediacom Build -out
Page 2 of 2 June 16, 2015
Summary City Council Worksession
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Mediacom
Build -out Analysis
Legend
Mediacom 2015/2016 Proposal
Public/Private Street
• Private
i Lateral -Shared
Lateral
Mediacom Existing Lines
Mediacom Existing Lines
CAF Funded Areas
OAF Funded Areas
Unserved - Underserved
Unserved
Existing 5-7 MB service
0 0.25 0.5 1
N
Miles
22 homes would remain unserved, requiring an additional 5.2 street miles to serve
Map Date: June 11, 2015
CITY OF MEDINA
GENERAL FUND
PRELIMINARY 2016 BUDGET
2013
Budget
2016 Amount Percentage
2013 2014 2014 2015 2015 Preliminary Increase Increase
Actual Budget YTD Budget YTD Budget (Decrease) (Decrease)
REVENUES & OTHER FINANCING SOURCES:
Property Tax Levy 2,726,118 2,696,460 2,807,902 2,735,154 2,892,139 3,155 3,080,302 188,163 6.5%
Other Taxes 5,000 157,676 20,000 79,267 30,000 0 30,000 0 0.0%
Licenses and Permits 254,900 975,626 340,200 658,453 371,800 191,787 371,800 0 0.0%
Intergovernmental 182,202 286,502 182,202 239,117 207,618 55,299 220,618 13,000 6.3%
Charges for Services 108,380 298,238 113,291 119,859 109,900 75,539 111,952 2,052 1.9%
Fines and Forfeitures 158,000 121,187 161,000 114,365 163,000 31,885 115,000 (48,000) -29.4%
Special Assessments 1,000 13,921 1,000 15 1,000 0 1,000 0 0.0%
Miscellaneous 146,325 144,474 137,680 195,193 138,300 130,121 142,500 4,200 3.0%
Sale of Assets 0 0 0 512 300 0 300 0 0.0%
Transfers In 194,500 194.500 199,900 199,900 205,450 0 211,164 5,714 2.8%
Total Revenues & Other Financing Sources 3,776,425 4,888,584 3,963,175 4,341,835 4,119,507 487,785 4,284,635 165,128 4.0%
EXPENDITURES & OTHER FINANCING USES:
General Government:
Mayor & Council 25,343 24,463 25,143 26,106 25,144 10,600 25,143 (1) 0.0%
Administration 564,690 530,611 583,347 566,543 559,890 174,703 557,446 (2,444) -0.4%
Elections 1,000 176 13,000 14,083 4,700 1,069 16,900 12,200 259.6%
Assessing 77,825 78,411 78,025 82,201 81,300 34,925 85,500 4,200 5.2%
Planning & Zoning 175,715 171,969 169,871 180,655 176,204 67,745 269,043 92,839 52.7%
Data Processing 50,650 49,629 65,350 65,850 68,350 27,311 71,850 3,500 5.1%
Police/Public Works Facility 27,000 156,572 85,822 65,431 100,400 30,930 75,400 (25,000) -24.9%
Municipal Building 37,450 39,795 38,900 40,351 37,600 18,543 43,200 5,600 14.9%
Unallocated 19,500 38,551 39,500 49,578 0 2,455 2,300 2,300 N/A
Total General Government 979,173 1,090,177 1,098,958 1,090,799 1,053,588 368,281 1,146,782 93,194 8.8%
Public Safety:
Police 1,463,260 1,449,307 1,500,053 1,481,174 1,562,435 491,242 1,602,817 40,382 2.6%
Police Records Management 9,200 11,137 8,000 9,568 8,650 8,050 8,650 0 0.0%
Fire 356,375 337,748 332,800 341,031 360,600 127,226 374,918 14,318 4.0%
Building Inspections 215,900 358,362 249,785 307,407 274,117 115,257 335,943 61,826 22.6%
Emergency Management 5,200 5,153 5,200 4,334 5,200 3,655 5,200 0 0.0%
Total Public Safety 2,049,935 2,161,708 2,095,838 2,143,513 2,211,002 745,431 2,327,528 116,526 5.3%
Public Works:
Public Works 563,550 576,282 595,767 635,203 647,313 196,216 684,605 37,292 5.8%
Sanitation &Recycling 17,479 11,330 14,180 11,120 14,543 3,992 15,208 665 4.6%
Total Public Works 581,029 587,612 609,947 646,322 661 856 200,209 699,813 37,957 5.7%
Parks & Recreation:
Community Building 28,113 28,137 28,715 41,079 27,847 11,727 34,839 6,992 25.1%
Parks 120,175 100,998 127,717 112,055 163,214 38,054 153,681 (9,533) -5.8%
Total Parks & Recreation 148,288 129,135 156,432 153,134 191,061 49,780 188,520 (2,541) -1.3%
Transfers Out 18,000 914,948 2,000 857,000 2,000 0 2,000 0 0.0%
Total Expenditures & Other Financing Uses
EXCESS (DEFICIENCY) OF REVENUES AND
OTHER FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES
3,776,425 4,883,580 3,963,175 4,890,767 4,119,507 1,363,700 4,364,643 245,136 6.0%
5,004 (0) (548,932) 0 (875,915) (80,008) (80,008) N/A 80,000 comp plan included
10
City Tax Rate:
General Fund Levy:
Debt Service & Capital Levies:
Total Levy:
Change in Total Levy:
City of Medina
2016 Proposed Property Tax Scenario
Residential Homesteads
SCENARIO - GENERAL FUND LEVY PLUS 6.5%
2015
Budget
2016
Proposed
2015-2016
Change
23.577%
23.639%
0.3%
$2,892,139
$609,672
$3,080,302
$693,786
$188,163
$84,114
$3,501,811
$3,774,088
$272,277
7.8%
2015 CITY PROPERTY TAXES
Market
Value
2015
Homestead
Market Value
Exclusion
2015
Tax
Capacity
2015
City Local
Tax Capacity
Rate
Pay 2015
City
Property
Taxes
2015
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
($28,200)
($19,200)
($10,200)
($1,200)
$0
$0
$0
$0
$0
$0
$718
$1,808
$2,898
$3,988
$5,000
$6,250
$7,500
$8,750
$10,000
$11,250
23.577%
23.577%
23.577%
23.577%
23.577%
23.577%
23.577%
23.577%
23.577%
23.577%
$169
$426
$683
$940
$1,179
$1,474
$1,768
$2,063
$2,358
$2,652
2016 CITY PROPERTY TAXES (WITH NO MARKET VALUE CHANGE''
Market
Value
2016
NO CHANGE
Homestead
Market Value
Exclusion
2016
Tax
Capacity
2016
City Local
Tax Capacity
Rate
Pay 2016
City
Property
Taxes
2016
Property
Taxes
Increase
(Decrease)
Percentage
Tax
Increase
(Decrease)
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
($28,200)
($19,200)
($10,200)
($1,200)
$0
$0
$0
$0
$0
$0
$718
$1,808
$2,898
$3,988
$5,000
$6,250
$7,500
$8,750
$10,000
$11,250
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
$170
$427
$685
$943
$1,182
$1,477
$1,773
$2,068
$2,364
$2,659
$0
$1
$2
$2
$3
$4
$5
$5
$6
$7
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
2016 CITY PROPERTY TAXES (WITH MARKET VALUE INCREASE'
Market
Value
2016
INCREASE OF
5.0%
Homestead
Market Value
Exclusion
2016
Tax
Capacity
2016
City Local
Tax Capacity
Rate
Pay 2016
City
Property
Taxes
2016
Property
Taxes
Increase
(Decrease)
Percentage
Tax
Increase
(Decrease)
$105,000
$210,000
$315,000
$420,000
$525,000
$630,000
$735,000
$840,000
$945,000
$1,050,000
($27,800)
($18,300)
($8,900)
$0
$0
$0
$0
$0
$0
$0
$772
$1,917
$3,061
$4,200
$5,313
$6,625
$7,938
$9,250
$10,563
$11,875
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
23.639%
1
$182
$453
$724
$993
$1,256
$1,566
$1,876
$2,187
$2,497
$2,807
$13
$27
$40
$53
$77
$93
$108
$124
$139
$155
7.8%
6.3%
5.9%
5.6%
6.5%
6.3%
6.1
6.0%
5.9%
5.8%
City of Medina
Property Tax Levies
2016 Proposed
General Fund Levy
Debt Service & Capital Levies:
Public Works and Police Department Facility:
2012A G.O. Capital Improvement Plan (CIP) Bonds - $6.1 million
2013A G.O. Refunding Bonds (2007A recharacterized CIP portion)
Total Public Works and Police Department Facility
Other Debt Service & Capital Levies:
Proposed Amount Percentage
Pay Pay Increase Increase
2015 2016 (Decrease) (Decrease)
2,892,139
3,080,302 188,163 6.5%
246,267 248,325
132,405 130,137
2,058 0.8%
(2,268) -1.7%
378,672 378,462 (210) -0.1%
2010A G.O. Improvement Bonds - Holy Name Drive and Pioneer Trail 29,000 29,500 500 1.7%
2011A G.O. Bonds - Hunter Drive South 12,500 13,000 500 4.0%
2011 B Taxable G.O. Improvement Bonds - Hunter Drive North 55,000 56,000 1,000 1.8%
2015A G.O. Improvement Bonds - Tower Drive 0 82,324 82,324 N/A
Capital Equipment Fund Levy 134,500 134,500 0 0.0%
Total Other Debt Service & Capital Levies 231,000 315,324 84,324 36.5%
Total Debt Service & Capital Levies 609,672 693,786 84,114 13.8%
Total Levies 3,501,811 3,774,088 272,277 7.8%
1