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HomeMy Public PortalAbout07.16.2019 Work Session Complete Packet Posted 5/29/2009 Page 1 of 1 WORK SESSION AGENDA MEDINA CITY COUNCIL Tuesday, July 16, 2019 6:00 P.M. Medina City Hall 2052 County Road 24 I. Call to Order II. 2020 Preliminary Budget Discussion* III. Hamel Fire Department Transition Group Study Request* IV. Adjourn *If work session is not finished by 7 p.m., it will recess and discussion will continue following the regular City Council meeting. Posted 7.11.19 MEMORANDUM TO: Medina City Council FROM: Scott Johnson, City Administrator DATE OF REPORT: July 10, 2019 DATE OF MEETING: July 16, 2019 SUBJECT: July 16, 2019 Work Session – 6:00 PM Work Session 6:00 PM 2020 Budget – General Fund Budget/City Capital Improvement Plan/Utilities Discussion Staff will present information on the proposed 2020 General Fund Budget and Capital Improvement Plan (CIP) including the different options for Council consideration. We will also discuss 2020 proposed rates for water, sewer and stormwater. Hamel FD – Transition Group Study Request Staff received the attached letter from Hamel Fire Department on July 1st requesting a Transition Group Study. Staff is requesting Council discussion and direction regarding the request. The Work Session meeting can be recessed until after the regular 7 PM City Council Meeting if further discussion is needed by the City Council on items. MEMORANDUM TO: City Council Members FROM: Erin Barnhart, Finance Director DATE: July 9, 2019 SUBJ: 2020 Preliminary Budget Summary General Fund (Attachment #1 General Fund Summary) Medina’s 2020 preliminary General Fund budget estimates an overall increase of $170,543. The increase is attributed to:  Annual Contracts o Assessor o Engineering o Legal o Maintenance o Public Safety o Police Radios – lease is being phased into the General Fund from the DWI Forfeiture Fund which is expected to be depleted in 2020. Estimated $10,000 annual expenditure beginning in 2021.  Building(s) Operations o Utilities (gas, electric etc.) o Snow/Lawn o Insurance  Presidential Election o Addition of Presidential Primary (March)  Decrease in revenue o Court fines - $20,000 reduction for 2020. 50% reduction over last 10 years. Hennepin County has increased their fee and decreased the overall fine to match other counties. o Phasing antenna revenue out of General Fund. $63,000 in 2020.  Staffing o Addition of full-time police officer ~$80,000 increase o 2.5% COLA increase o Medical Insurance  Building Permits o Permit revenues are budgeted to increase due to increased enforcement expenditures. Increasing permit revenues to match increased permit issuance would also increase expenditures. o YTD single family home permits issued = 28 Work Session 2 General Fund Reserves  $957,168 in reserves ($485,722 assigned (Litigation, Railroad Crossing, Retirement Liability & Comprehensive Plan); $471,466 unassigned) o Employee leave liability (not including eligible retirees) $258,136. If leave liability assigned to reserves remaining balance would be $213,310. Enterprise Funds Proposed increases for 2020:  Water 1.5%  Sewer 2%  Storm Water 3% Water/Sewer Connection Fees  No proposed changes for 2020 – per 2018 utility rate analysis. Municipal Park Fund (Attachment #2 2020-2024 Draft CIP)  $105,000 CIP expenditures in 2020.  $125,000 CIP expenditures in 2021/22  $505,000 CIP expenditures in 2023  Increase levy from $14,000 to $112,000 to finance 30-year park replacement (current assets) needs in lieu of bonding. o Three new park areas estimated within the next decade will be added to asset list and 30-year payment plan would need to be adjusted. Equipment Fund (Attachment #2 2020-2024 Draft CIP)  $376,290 budgeted expenditures in 2020.  Transfer in $63,882 antenna revenue.  Increase levy from $134,500 to $312,409 to finance on going equipment replacement needs in lieu of bonding. o Conduit bond proceeds – if things proceed as planned; proceeds from conduit bond could also be used to offset levy.  Equipment Bonding Options (per the proposed 2020 CIP): o 3-year Equipment Certificates $935,000  $93,045 cost of issuance & interest o 5-year Equipment Certificates $1,395,000  $157,159 cost of issuance & interest *Equipment Certificates must be spent in entirety within allocated years.  Purchasing History 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Expenditures $106,836 $57,113 $92,364 $413,513 $536,426 $207,745 $157,540 $245,765 $523,577 3 Forfeiture Fund (Federal Drug & DWI)  Due to changes in law with forfeitures revenues have ceased. DWI Fund will be depleted in 2020 – future expenditures will be paid for out of General Fund or Equipment Fund.  Federal Drug Fund has also decreased in revenue due to law changes. Future Expenditures will come from the Equipment Fund. Future Budget Needs  Affordable and Life-Cycle Housing Opportunity Amount (Attachment #3 ALHOA)  Revolving Capital Fund  Fire Council Action  Direction on Municipal Park Fund levy & Equipment Fund levy vs. bonding.  ALHOA program o Budget for the ALHOA (likely worked into the budget over several years)  Staff could prepare information describing potential programs which the City could administer  Work with an adjacent city. For example, Plymouth has a more active housing program. Medina could inquire whether Plymouth would be interested in partnering. o Decide to not participate in LCA o No action – the primary consequence of not expending the ALHOA is that the City will not quantify for LCA funding, which would only come into play if there were a future application. CITY OF MEDINA GENERAL FUND PRELIMINARY 2020 BUDGET 2020 Amount Percentage 2017 2017 2018 2018 2019 Prelim Increase Increase Budget Actual Budget Actual Budget Budget (Decrease) (Decrease) REVENUES & OTHER FINANCING SOURCES: 1 Property Tax Levy 3,134,977 3,132,281 3,229,026 3,154,881 3,325,897 3,440,933 115,036 3.5% 2 Other Taxes 30,000 73,488 30,000 51,358 33,000 75,000 42,000 127.3% 3 Licenses and Permits 372,800 595,499 374,300 592,277 377,400 390,669 13,269 3.5% 4 Intergovernmental 207,618 256,433 232,118 271,965 263,910 279,773 15,863 6.0% 5 Charges for Services 112,831 143,411 124,564 130,169 123,146 138,087 14,941 12.1% 6 Fines and Forfeitures 105,000 96,050 105,000 88,044 110,000 95,000 (15,000) -13.6% 7 Special Assessments 1,000 12,545 0 1,761 1,715 0 (1,715) -100.0% 8 Miscellaneous 128,167 182,453 108,225 215,518 123,698 104,237 (19,461) -15.7% 9 Sale of Assets 3000300000 0 N/A 10 Transfers In 217,048 217,049 223,110 208,110 213,572 219,183 5,611 2.6% 11 Total Revenues & Other Financing Sources 4,309,741 4,709,209 4,426,643 4,714,083 4,572,338 4,742,881 170,543 3.7% EXPENDITURES & OTHER FINANCING USES: General Government: 12 Mayor & Council 26,294 25,323 25,144 25,273 25,644 25,543 (101) -0.4% 13 Administration 591,789 568,959 602,321 599,335 630,578 660,430 29,852 4.7% 14 Elections 10,900 1,501 10,900 15,235 11,400 15,400 4,000 35.1% 15 Assessing 88,872 90,515 90,493 91,229 93,840 98,066 4,226 4.5% 16 Planning & Zoning 190,150 191,825 193,840 169,879 189,411 191,105 1,694 0.9% 17 Comprehensive Plan 8,000 125 8,000 0 8,000 8,000 0 0.0% 18 Data Processing 72,850 73,271 82,083 79,586 82,083 88,704 6,621 8.1% 19 Police/Public Works Facility 69,415 69,521 69,415 79,670 76,415 77,500 1,085 1.4% 20 Municipal Building 48,410 39,740 39,100 40,994 60,810 61,000 190 0.3% 21 Unallocated 2,300 0 2,100 0 2,100 0 (2,100) -100.0% 22 Total General Government 1,108,980 1,060,780 1,123,396 1,101,200 1,180,281 1,225,748 45,467 3.9% Public Safety: 23 Police 1,564,597 1,525,729 1,617,770 1,647,492 1,651,875 1,743,303 91,428 5.5% 24 Police Records Management 8,850 8,561 8,850 8,693 8,850 13,500 4,650 52.5% 25 Fire 394,172 426,262 424,716 413,375 446,242 424,590 (21,652) -4.9% 26 Building Inspections 300,006 240,836 312,013 409,365 318,343 330,718 12,375 3.9% 27 Emergency Management 5,200 4,246 5,200 3,990 5,200 5,800 600 11.5% 28 Total Public Safety 2,272,825 2,205,634 2,368,549 2,482,916 2,430,510 2,517,911 87,401 3.6% Public Works: 29 Public Works 708,212 618,315 706,455 641,221 726,877 749,449 22,572 3.1% 30 Sanitation & Recycling 15,112 13,302 18,146 12,567 20,080 21,105 1,025 5.1% 31 Total Public Works 723,324 631,617 724,601 653,789 746,957 770,555 23,597 3.2% Parks & Recreation: 32 Community Building 33,950 32,540 37,127 50,694 41,146 41,808 662 1.6% 33 Parks 168,662 165,077 170,970 242,850 169,444 182,859 13,415 7.9% 34 Total Parks & Recreation 202,612 197,617 208,097 293,544 210,590 224,667 14,077 6.7% 35 Transfers Out 2,000 2,000 2,000 53,362 4,000 4,000 0 0.0% 36 Total Expenditures & Other Financing Uses 4,309,741 4,097,648 4,426,643 4,584,810 4,572,338 4,742,882 170,543 3.7% EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) 37 EXPENDITURES AND OTHER FINANCING USES 0 611,561 0 129,273 0 (0) (0) N/A 2020 CIP: DEPARTMENT Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Potential Revenue Source Roads 1 Tamarack North of Medina to Blackfoot Overlay 54,000$ 43,200$ Reserves/Bonds/Assessments 2 Tamarack - Medina to 24 - Overlay 49,985$ 39,988$ Reserves/Bonds/Assessments 3 Tamarack City Limits to CSAH 24 Overlay 77,675$ 62,140$ Reserves/Bonds/Assessments 4 Clydesdale trail overlay 600/101 150,000$ 75,000$ Reserves/Bonds/Assessments 5 Oakview Road - Overlay 43,000$ 21,500$ Reserves/Bonds/Assessments 6 Deer Hill Road East - Overlay 27,000$ 23,500$ Reserves/Bonds/Assessments 7 Dusty Trail - Overlay 4,000$ 2,000$ Reserves/Bonds/Assessments 8 Tower Dr West Overlay/curb 42,000$ 21,000$ Reserves/Bonds/Assessments 9 Chestnut Road - Overlay 50,000$ 25,000$ Reserves/Bonds/Assessments 10 Town Line Rd South 100,000$ 100,000$ Assessment Escrow Fund 11 Foxberry Farms Overlay/10% curb 283,000$ 142,000$ Reserves/Bonds/Assessments 12 Hackamore Medina/ Portion 600,000$ 450,000$ 600,000$ 450,000$ Reserves/Bonds/Developer 13 Willow Drive North to 24 - reclaim 200,000$ 160,000$ Reserves/Bonds/Assessments 14 Shire Dr Overlay 32,000$ 16,000$ Reserves/Bonds/Assessments 15 Iroquois Drive Overlay 30,000$ 15,000$ Reserves/Bonds/Assessments 16 Maplewood Drive Overlay 29,328$ 14,664$ Reserves/Bonds/Assessments 17 Bobolink Road Overlay 90,000$ 45,000$ Reserves/Bonds/Assessments 18 Morningside Road Overlay 110,000$ 55,000$ Reserves/Bonds/Assessments 19 Elsinore Circle N of Morningside Rd Overlay 20,000$ 10,000$ Reserves/Bonds/Assessments 20 Arrowhead & CR 118 Whistleless Crossing 450,000$ 60,000$ Reserves/State Bonding/Grant 21 Roads Sub-total 555,000$ 122,500$ 1,063,000$ 682,000$ 474,660$ 351,828$ 820,000$ 560,000$ 129,328$ 114,664$ 22 23 Public Works 24 Tandem 230,000$ 230,000$ Equipment Bonds/Cap Equip Fund 25 Water Truck / Tanker Replacement 20,000$ 20,000$ Equipment Bonds/Cap Equip Fund 26 Air Compressor 25,000$ 25,000$ Equipment Bonds/Cap Equip Fund 27 Ditch Mower Replacement/Loretto 90,000$ 45,000$ Equipment Bonds/Cap Equip Fund 28 Backhoe Replacement 130,000$ 130,000$ Equipment Bonds/Cap Equip Fund 29 Skid Steer Upgrade w/ Bucket/Harly Rake 12,000$ 12,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ Equipment Bonds/Cap Equip Fund 30 Single Axle Truck 220,000$ 220,000$ Equipment Bonds/Cap Equip Fund 31 Public Works Sub-total 167,000$ 167,000$ 4,000$ 4,000$ 244,000$ 244,000$ 234,000$ 234,000$ 90,000$ 45,000$ 32 33 Police 34 PD Squad Cars 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 80,000$ 80,000$ 126,000$ 126,000$ Equipment Bonds/Cap Equip Fund 35 Traffic Squad 35,000$ 35,000$ Equipment Bonds/Cap Equip Fund 36 PD Squad Camera / Body Cams 100,000$ 100,000$ Equipment Bonds/Cap Equip Fund 37 Portable Radios 6,000$ 6,000$ 4,000$ 4,000$ 4,000$ 4,000$ DWI Forfeiture Fund/Cap Equip 38 Squad Radios 40,000$ 40,000$ DWI Forfeiture Fund/Cap Equip 39 Records Management 70,000$ 70,000$ Equipment Bonds/Cap Equip Fund 40 Miscellaneous 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ DWI Forfeiture Fund/Cap Equip 41 Police Sub-total 129,000$ 129,000$ 114,000$ 114,000$ 257,000$ 257,000$ 80,000$ 80,000$ 134,000$ 134,000$ 42 43 Fire 44 HAMEL 45 Ongoing PPE Replacement 10,000$ 10,000$ 10,000$ 12,000$ 12,000$ Equipment Bonds/Cap Equip Fund 46 Command Vehicle Replacement 4,320$ 4,320$ 4,320$ 4,320$ 4,320$ Equipment Bonds/Cap Equip Fund 47 Engine 11 Refurbishment 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ Equipment Bonds/Cap Equip Fund 48 Pumper/Tanker 38,917$ 38,917$ 38,917$ 38,917$ 38,917$ Equipment Bonds/Cap Equip Fund 49 Annual Contract 75,000$ 75,000$ 75,000$ 77,000$ 77,000$ Equipment Bonds/Cap Equip Fund 50 Hamel Fire Sub-total 73,237$ 75,000$ 73,237$ 75,000$ 73,237$ 75,000$ 75,237$ 77,000$ 75,237$ 77,000$ 51 52 Loretto & Long Lake 53 Fire (Loretto)28,290$ 28,290$ 28,290$ 28,290$ 28,290$ Equipment Bonds/Cap Equip Fund 54 Fire (Long Lake)6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Equipment Bonds/Cap Equip Fund 55 Fire Sub-total -$ 34,290$ -$ 34,290$ -$ 34,290$ -$ 34,290$ -$ 34,290$ 56 57 Emergency Management 58 Siren Maintenance 5,000$ 5,000$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ Equipment Bonds/Cap Equip Fund 59 Civil Defense Sirens 30,000$ 30,000$ Revolving Cap. Impr. Fund 60 Civil Defense Sub-total 5,000$ 5,000$ 37,500$ 37,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 7,500$ 61 62 63 Administration/Data Processing 64 Vehicle Equipment Bonds/Cap Equip Fund 65 Administration Sub-total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 66 67 City Buildings 68 City Hall Repairs/Renovation 15,000$ 15,000$ 10,000$ 10,000$ 15,000$ 15,000$ 10,000$ 10,000$ 15,000$ 15,000$ Revolving Cap. Impr. Fund 69 Community Building Repairs 10,000$ 10,000$ 15,000$ 15,000$ 10,000$ 10,000$ 15,000$ 15,000$ 10,000$ 10,000$ Revolving Cap. Impr. Fund 70 PW/Police Repairs/Renovations 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ Revolving Cap. Impr. Fund 71 City Buildings - Parking Lot 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$ Revolving Cap. Impr. Fund 72 City Building Sub-total 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 73 74 75 76 Water (high growth expectation) 2020 2020 - 2024 Capital Improvement Plan 2021 2022 2023 2024 1 2020 CIP: DEPARTMENT Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Project Cost City Proposed Portion Potential Revenue Source 2020 2020 - 2024 Capital Improvement Plan 2021 2022 2023 2024 77 Water Treatment Plant Expansion 1,400,000$ 1,400,000$ Future - Water Capital 78 Chippewa Watermain Extension - Arrowhead to Mohawk 400,000$ 400,000$ Water Capital Improvement 79 Chippewa West of Mohawk 435,000$ 435,000$ Water Capital Improvement 80 Water Tower (and land acquisition)2,600,000$ 2,600,000$ Future Water Cap (2020-2023) 81 Water Sub-total -$ -$ 835,000$ 835,000$ 2,600,000$ 2,600,000$ 1,400,000$ 1,400,000$ -$ -$ 82 83 Sewer 84 Willow Dr Lift Station 700,000$ 700,000$ Sewer Capital Fund I / I Maintenance 100,000$ 100,000$ 100,000$ 100,000$ Sewer Capital Fund Hunter/Hamel Rd Upsize 750,000$ 750,000$ Sewer Capital Fund 86 Sewer Sub-total -$ -$ 800,000$ 800,000$ 100,000$ 100,000$ -$ -$ 750,000$ 750,000$ 87 88 Storm Water 89 Long Lake Creek Sub Watershed 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ Storm Water Fund/Grants 90 Storm Water Sub-total -$ 10,000$ -$ 10,000$ -$ 10,000$ -$ 10,000$ -$ 10,000$ 91 92 Municipal Park Replacements 93 Trails 97 Annual Trail Replacement 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 30,000$ 30,000$ 30,000$ 30,000$ Municipal Park Fund 98 Hamel Legion Park 99 Holy Name Park 100 Hunter Lions Park 101 Full Park Reconstruction/Tennis Court 10,000$ 10,000$ 500,000$ 450,000$ Municipal Park Fund/Grants 102 Lakeshore Park 103 Large Playground Equipment 100,000$ 100,000$ Municipal Park Fund 104 Rainwater Nature Area 105 Maple Park 106 Walnut Park 107 Basketball Hoop/Striping 5,000$ 5,000$ Municipal Park Fund 108 Medina Morningside Park 109 Playground curb/rubber under swings 50,000$ 50,000$ Municipal Park Fund 110 Replace baseball backstop 5,000$ 5,000$ Municipal Park Fund 111 Parking Area 10,000$ 10,000$ Municipal Park Fund 112 Medina Lake Preserve 114 Park Clean-up 25,000$ 25,000$ 25,000$ 25,000$ Municipal Park Fund 115 Tomann Preserve - Park Development 116 The Park at Fields of Medina 117 105,000$ 105,000$ 125,000$ 125,000$ 25,000$ 25,000$ 555,000$ 505,000$ 55,000$ 55,000$ 118 119 New Park Development 120 Trails 121 Arrowhead Dr RR Crossing 130,000$ 130,000$ Park Dedication Fund 122 Hackamore Trail 174,000$ 87,000$ 174,000$ 87,000$ Park Ded/Cost Share w/ Corcoran 123 Medina Road Trail 200,000$ 200,000$ Park Dedication Fund 124 Medina Lake Preserve 125 Trail Head 25,000$ 25,000$ 25,000$ 25,000$ Park Dedication Fund 126 Park Land by Medina Golf & CC 500,000$ 500,000$ Park Dedication Fund 127 Land Acquisitions / New Trails 250,000$ 250,000$ Park Dedication Fund 128 Parks Sub-total 130,000$ 130,000$ 374,000$ 287,000$ 750,000$ 750,000$ 199,000$ 112,000$ 25,000$ 25,000$ 129 130 TOTAL:1,219,237$ 832,790$ 3,480,737$ 3,058,790$ 4,586,397$ 4,509,618$ 3,425,737$ 3,074,790$ 1,321,065$ 1,307,454$ 2 MEMORANDUM TO: City Council Members FROM: Dusty Finke, Planning Director DATE: July 9, 2019 SUBJ: Affordable and Life-Cycle Housing Opportunity Amount (ALHOA) Background: The City participates in the Livable Communities Act (LCA), a program administered by the Metropolitan Council offering grants to participating cities to support development of affordable and life-cycle housing. The City elected to take part in the LCA in 1996 and to continue in 2010. The 2040 Comprehensive Plan also notes that the City participates in LCA Communities which participate in the LCA are required to expend a certain amount annually to help create, sustain, preserve, or advance affordable and/or life-cycle housing opportunities. In 2019, this amount is $58,082. The City is required to report annually whether at least 85% of this amount is expended each year. If the City does not expend 85% of the ALHOA, the City does not qualify for any grants within the LCA. The following expenses are examples which count towards the ALHOA: direct housing assistance and development or rehabilitation activities, debt service on affordable housing projects and staff time administering programs that create affordable housing opportunities. Staff can quantify some staff time but does not estimate $50,000 of staff time will be spent on housing. Options: • Budget for the ALHOA (likely worked into the budget over several years) o Staff could prepare information describing potential programs which the City could administer o Work with an adjacent city. For example, Plymouth has a more active housing program. Medina could inquire whether Plymouth would be interested in partnering. • Decide to not participate in LCA • No action – the primary consequence of not expending the ALHOA is that the City will not quantify for LCA funding, which would only come into play if there were a future application. Work Session MEMORANDUM TO: Mayor Martin and City Council FROM: Scott Johnson, City Administrator DATE: July 16, 2019 SUBJ: Fire Department Transition Study Group – Hamel Fire Department BACKGROUND Medina staff received the attached letter from the Hamel Fire Department Board of Directors on July 1, 2019. The letter requests formation of a joint team with representatives from the City of Medina to investigate putting together a future fire protection service plan (could review 5 years, 10 years, and future) for this area of Medina. Further, their “Board recognizes and agrees that nothing in this request, or in the work product of the study group, would bind either party to any particular action or outcome, and that the status quo may continue regardless of recommendations. Regardless of the outcome, however, the benefits of this study will serve both organizations and help shape the course for the future of fire protection service in Medina.” REQUESTED DISCUSSION AND DIRECTION Staff is requesting City Council discussion of the July 1st letter and direction regarding the request from the Hamel Fire Department Board of Directors TO: Hamel V ©1171:2 a7, t e t 92 Hamel Road ® Hamel, MN o 55340 July 1,2019 Ed Belland, Police Chief and Public Safety Director, City of Medina Scott Johnson, City Administrator, City of Medina SUBJECT: Fire Department Transition Study Group This letter is in reference to discussions that took place during the Hamel Fire Department's Fire Advisory Board meeting of June 19th, 2019. The Hamel Volunteer Fire Department, Inc. Board of Directors is requesting formation of a joint team with representatives of the City of Medina to investigate and determine the feasibility of transitioning Hamel Fire to a municipal fire department. The Hamel Volunteer Fire Department has served the community for more than 87 years as an independent service provider. Currently, the Department provides emergency services to more than 75% of Medina, measured by property and population protected. As discussed in detail at the aforementioned meeting, the alignment of several factors impacting the fire service, such as the need for long-term investment decisions, form the basis of this request. The Board recognizes and agrees that nothing in this request, or in the work product of the study group, would bind either party to any particular action or outcome, and that the status quo may continue regardless of recommendations. Regardless of the outcome, however, the benefits of this study will serve both organizations and help shape the course for the future of fire protection service in Medina. The Hamel Fire representatives for this study would be Jeff Ruchti (President and Fire Chief) and Mario Fabrizio (Vice -President and Assistant Chief). We suggest the City of Medina also assign two representatives, specifically the Mayor and the Public Safety Liaison. They are members of the Fire Advisory Board and well versed in current matters. We believe that it should be the responsibility of the study group to develop an appropriate scope and time -line for its work. Further the group would be responsible for enlisting the aid and input from others as deemed appropriate. Thank you in advance for your cooperation and consideration. We look forward to working collectively and collaboratively in this endeavor. Respectfully, Board of Directors, Hamel Volunteer Fire Department, Inc. Vic ario Fabrizio�f 34t,tee J ee �✓.�- �� 3rran Kbdet �`' 1Glichael Si 'tyif Nelson Tress rer miarnbr Hamel Volunteer Fire Department Hamel Fire Advisory Board 2020 Budget Review Operations & Capital Updated: June 19, 2020 2020 Budget Review Page 1 Budget Process Contract Requirement 9.1 Budget Process By June 1st of each year during which this Agreement remains in effect, Hamel VFD shall provide an Annual Fire Services Operating Budget and an Annual Fire Services Capital Budget covering the costs related to the provision of fire protection for the next year. The budgets provided to the Contracted Cities must have been presented to the Advisory Board prior to May 1st for discussion and review…… Updated: June 19, 2020 2020 Budget Review Page 2 Accurate expense projection, so far in advance, with so many items still unknown, is not reasonable 2019 Proposed Operating Expenses Updated: June 19, 2020 2020 Budget Review Page 3 2019 APPROVED 2020 PROPOSED OPERATIONAL EXPENSES $ 259,500 $ 268,550 Key Expense Drivers … Service contracts … increased cost of Radio (HCSO) administration, PPE inspections, SCBA maintenance/testing, medical device maintenance contracts and annual apparatus inspections are experiencing increases (all required) Maintenance/Repair for facility and grounds Insurance … COLA increases plus additional AD&D coverage (aide in recruitment/retention) Increased costs for firefighter physicals and health screenings (required by contract) and audiometric tests Larger roster increases reimbursement expenses … impact minimized by holding rates flat year-year. Increased training expenses… required to maintain additional certifications (Instructor, Officer, FAO, EMT) and core skills Pension contribution held flat … since 2017 Year -Year Change: 3.5% 2020 Proposed Sources of Income Updated: June 19, 2020 2020 Budget Review Page 4 SOURCE OF FUNDING 2020 PROPOSED COMMENTS State Training Reimbursements $ 2,000 Rates not set until August each year Municipal Share $ 266,550 Proposed Medina Service Fees for 2020 2020 Proposed Operations Budget Updated: June 19, 2020 2020 Budget Review Page 5 2020 PROPOSED Expense $ 268,250 State Training Reimbursements $ 2,000 Medina Service Fees $ 266,250 Income $ 268,250 10 Year Capital Plan (from 2019 Submission) Updated: June 19, 2020 2020 Budget Review Page 6 Capital Item 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 PPE (ongoing)$ 10k $12k $12k $12k $12k $12k $12k $12k $12k $12k $12k $12k Engine (E-12)$ 320k Command Vehicle $ 45k Light Utility (U-12)$ 50k Tanker (T-12)$ 195k Utility (U-11)$275k Light Rescue (R-11)$ 265k Engine (E-11)$ 550k 10 YEAR PLAN •Analyzed apparatus utilization and projected future needs •Re -prioritized to pursue the Light Rescue Vehicle in 2019 •Results of analysis allowed for elimination of U-11 from fleet and replacement plan Combined U11/R11 Replacement, reduced costs to $225k and delayed order Eliminated from plan 10 Year Equipment Capital Plan -Current Updated: June 19, 2020 2020 Budget Review Page 7 Capital Item 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 PPE (ongoing)$12k $12k $12k $12k $12k $12k $12k $12k $12k $12k $12k Command Vehicle $50k Light Utility (U-12)$50k Light Rescue (R-11)225k Engine (E-11)$ 600k Capital Contribution 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 City of Medina $73k $75k $75k $75k $ 77k $77k $77k $ 77k $77k $77k $80k Hamel Fire $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k $ 25k TOTAL $ 98k $ 100k $ 100k $ 100k $ 102k $ 102k $ 102k $ 102k $ 102k $ 102k $ 105k PRIOR PLAN 10 YEAR PLAN REFERENCE ONLY Updated: June 19, 2020 2020 Budget Review Page 8 POTENTIAL COST DRIVERS and INCREASES Potential Personnel Cost Increases: $250,000 annually Estimated costs for a full-time Chief, part-time administrator and initial day- time Duty Crew of two. Potential Facility Renovation Cost: $ 2,200,000 (preliminary estimate only) Remodel of the existing facility. This is based on a high-level renovation plan and a cost estimate provided by an outside agency, reflecting current material and labor costs. NOTE: Estimates shown re-state estimates provided to Medina in October 2018. They are included here per direction of the Public Safety Director. None of these costs are included in the operating or capital budget submission. Summary Updated: June 19, 2020 2020 Budget Review Page 9 QUESTIONS ??