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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 CHIPPEW COUNTY ROAD 11 MAPLE Half Moon\ Independence Spurzem COUNTY ROAD 24 BOBOLINK X CO J( olsfe MORGA► IlLACKFOOT EERHI edin�0 om ANDERj NAVA HEROKE HACKAMORE SN4NNEEIW 1CZS TOWER A v Holy Name 0 m LE l Mooney A MEDINA 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