HomeMy Public PortalAbout05.02.2023 Work Session Meeting Packet Posted 5/29/2009 Page
WORK SESSION AGENDA
MEDINA CITY COUNCIL
Tuesday, May 2, 2023
5:30 P.M.
Medina City Hall
2052 County Road 24
I. Call to Order
II. Common Bond TIF Update and Fee Reduction Request
III. DDA Classification and Compensation Discussion
IV. Adjourn
Posted 04.28.2023
Melrose Commons Page 1 of 3 May 2, 2023
Affordable Housing Discussion City Council Worksession
TO: Mayor Martin and Members of the City Council
FROM: Dusty Finke, Planning Director
DATE: April 27, 2023
MEETING: May 2, 2023 City Council Worksession
SUBJECT: Melrose Commons – Affordable Housing Fee Waiver Discussion
Background
On June 21, 2022, the Medina Economic Development Authority (MEDA) adopted resolution
2022-03, which supported use of Tax Increment Financing (TIF) assistance for development of
Melrose Commons, a 50-unit affordable housing project proposed by CommonBond
Communities. The project is proposed north of Highway 12, east of Baker Park Road.
TIF assistance was intended to support CommonBond’s application for tax credit support from
Minnesota Housing, which would provide a much larger amount of support. Applications for tax
credits are extremely competitive, and Minnesota Housing did not approve CommonBond’s
request in 2022. CommonBond intends to submit an application again in July 2023.
Information on the project is attached for reference.
During the past four months, CommonBond, Interfaith Outreach, City staff, and Ehlers (the
City’s municipal advisor), have had a series of discussions related to potential City support for
the application and the project. CommonBond and Interfaith Outreach have also had
discussions with Mayor Martin and Councilmember DesLauriers.
MEDA supported TIF not to exceed $306,000 over an anticipated term of 15-years. This
resolution is still in place, but will likely need to be updated to account for updated assumptions.
There are still several datapoints which CommonBond and staff are waiting on to finalize the
TIF analysis. Most significantly, CommonBond has requested substantial funding from
Hennepin County for the project. Additionally, rent assumptions will be updated by the Federal
and State government in May. As such, staff intends to present updated TIF information at the
June 6 MEDA meeting.
Fee Waiver Request
In addition to the TIF support, there have been discussions with City Council related to potential
fee waivers for additional local financial support. While MEDA considers TIF requests, fee
waivers are at the discretion of the City Council.
CommonBond has requested that the City waive $115,000 in sewer connection and park fees for
the project. This request is consistent with discussions that the City Council held in December
2022 related to strategies to support affordable housing.
MEMORANDUM
Work Session Agenda Item II
Melrose Commons Page 2 of 3 May 2, 2023
Affordable Housing Discussion City Council Worksession
Council Discussion on Affordable Housing Support
A copy of the staff report from the December worksession is attached for reference. As
discussed, the City has been allocating and setting aside approximately $57,000 per year with the
intention of supporting affordable housing. The $57,000 annual amount is equal to the minimum
amount which the City is required to allocate to support affordable housing to be active in the
Livable Communities Act (LCA) programs. During the discussion, staff suggested that a
straight-forward way to utilize these funds may be to pledge fee waivers of approximately $2300
per affordable unit. This amount was determined by dividing 10 years of affordable housing
funding (approximately $570,000) by the City’s affordable housing allocation for 2021-2030
(244 units).
Staff’s impression from the December discussion was that the Council may be supportive of a
$2300/unit support based on this formula. As a result, staff suggested that CommonBond limit
its fee waiver request to $115,000 (50 units x $2300).
Relationship between Fee Waivers, TIF, and MN Housing Scoring
Fee waivers can provide additional “points” for the Minnesota Housing application to make the
request more competitive.
TIF assistance is subject to the “but for” analysis because TIF can only be provided if it is shown
that project would not be constructed but for the TIF support. Essentially, the TIF is limited to
the minimum amount to make the project viable. As such, all other variables being fixed, if the
City (or any other agency) provides fee waivers or other financial support, the maximum amount
of TIF assistance would decrease.
Because fee waivers and TIF financing are considered in different categories, there is strategy
between the amount of fee waivers vs. TIF to maximize points in Minnesota Housing scoring.
There are also many factors that may still affect the remaining “gap” for development of the
project such as interest rates, construction costs, annual TIF increment produced (which is
impacted by tax rates, market values), etc.
City Council Feedback Requested
Staff requests Council feedback on Council support for the $2300/unit fee waiver in general for
affordable housing proposals, and also for feedback for $115,000 specifically for the Melrose
Commons project.
Staff anticipates that TIF assistance for this and other projects may be considered in certain cases
as well, but would be considered by MEDA in addition to fee waiver support.
If the City Council agrees, staff would intend to prepare a letter of support or resolution of
support as necessary related to the $115,000 in fee waivers for the Melrose Commons project
and present on a future consent agenda.
As noted above CommonBond’s TIF request is scheduled to be reviewed at the June 6 MEDA
meeting. Ehlers is awaiting additional information to finalize their analysis. This analysis is
Melrose Commons Page 3 of 3 May 2, 2023
Affordable Housing Discussion City Council Worksession
likely to change the maximum amount of TIF assistance which may be permissible and MEDA
will be able to determine the desired level of support.
Attachment
1. Melrose Commons information
2. December 2022 Worksession memo
NOTES
Advantage Services Interfaith Outreach Construction Lender TBD
Compliance Jill Lee Investor TBD
Property Management TBD Perm Lender TBD
Construction Management Tammie Fallon General Contractor TBD
Asset Management Henry Parker Attorney Winthrop & Weinstine
DEVELOPMENT TEAM
INTERNAL TEAM EXTERNAL TEAM
Acquisitions & Development Sally Rabban Architect UrbanWorks
Placed in Service 4/1/2026
Stabilization Start 7/30/2026
Stabilization Deadline 12/1/2026
Tax Credit Closing / Construction Start 4/1/2025
Construction Completion 4/1/2026
Lease-Up Start 1/1/2026
Parking Closest CBC Community?
TIMELINE
Acquisition 4/1/2025
Maple Terrace50 underground, 50 surface
# of Buildings 1 Difficult to Develop Area? No
Gross SF 64,536 Qualified Opportunity Zone? No
MHFA Project Number (M#) M19122 HTC # TBD
BUILDING & SITE INFORMATION
# of Stories 3 Qualified Census Tract? No
AMI 30% - 60% AMI
CBC Property Number hd0804 Tax Credit Pool Metro
MHFA Property Number (D#) D8514 Tax Credit Allocator MHFA
County Hennepin
Ownership Entity TBD Type of Tax Credits 9%
Provided by Interfaith
Outreach
MELROSE COMMONS
PROJECT SUMMARY
Development Name Melrose Commons Total # of Units 50
Resident rent shown below reflects 2022 rents plus 4% increase (2023 rents to be published in mid-May).
Budget below reflects 26 years TIF ($360,000) and SAC and Park Dedication fee waivers ($115,000).
This new construction 50-unit project is located in Medina, MN. It will include 12 one-bedrooms, 20 two-bedrooms, 12 three-
bedrooms, and 6 four-bedroom units. Affordability levels will vary from 30% to 60% AMI and target families. Of the 50 units, 7-
units will be restricted to formerly homeless individuals and 8-units to people with disabilities (utilize Housing Support).
Supportive services will be provided by Interfaith Outreach & Community Partners.
State MN Programs & Set-Asides 7 HPH, 8 PWD
Zip Code 55359 Service Level
Address Baker Park Road and US-12 Population Family
City Medina
PREDEVELOPMENT
Date of Report 4/25/2023
*PWD = People with Disabilities, HPH = High Priority Homeless, HS = Housing Support
% of Total
% of Total
Gap to be filled by TBD Sources 617,579$ 12,352$ 3%
City of Medina - Fee Waivers (SAC and Park) 115,000$ 2,300$ 1%
Reserves and Non-Mortgageable 376,195$ 7,524$ 2%
Total Development Cost 21,066,708$ 421,334$ 100%
Financing & Syndication Costs 930,340$ 18,607$ 4%
Developer Fees 1,800,000$ 36,000$ 9%
Professional Fees 1,732,536$ 34,651$ 8%
Contractor Fees 1,050,468$ 21,009$ 5%
Contingency 725,126$ 14,503$ 3%
Acquisition (inclds land write down of $220k) 1,000,000$ 20,000$ 5%
Construction 13,452,043$ 269,041$ 64%
Funding Gap -$ -$
Permanent Uses Amount Per Unit
Deferred Developer Fee (CBC contribution) 288,000$ 5,760$ 1%
Total Permanent Financing 21,066,708$ 421,334$ 100%
Hennepin County HOME (pending application) 980,000$ 19,600$ 5%
Tax Credit Syndication Proceeds 14,815,194$ 296,304$ 70%
Sales Tax & Energy Rebate (CBC contribution) 421,835$ 8,437$ 2%
First Mortgage 3,469,000$ 69,380$ 16%
General Partner Cash 100$ 2$ 0%
City of Medina - TIF for 26 years 360,000$ 7,200$ 2%
Net Operating Income 270,151$ 5,403$
SOURCES & USES
Permanent Sources Amount Per Unit
Services -$ -$ MIP 0.00%
Total Expenses 444,606$ 8,892$
Construction Loan Rate 7.06%
Reserves 22,500$ 450$ Perm Loan Rate 6.20%
Insurance 40,000$ 800$
Property Taxes 50,126$ 1,003$
DCR Year 1 1.15
Utilities 56,000$ 1,120$ DCR Year 15 2.15
Administration/Management 159,285$ 3,186$
Maintenance/Operating 116,695$ 2,334$
Income Inflator 2.0%
Expense Inflator 3.0%
Expense Amount Per Unit Cap Rate 7.0%
Vacancy (53,799)$ (1,076)$
Total Revenue 714,757$ 14,295$
Rental Income 763,056$ 15,261$
2 BR 10 925 50% MTSP 50% MTSP1253 120 1373
HPH, HS
2 BR 3 925 30% MTSP 30% MTSP PWD, HS
1 BR 3 650 30% MTSP 30% MTSP636 98 734
865 120 985
UNIT SUMMARY
Program Type
1 BR 5 650 30% MTSP 30% MTSP PWD, HS
Unit Type # Units Approx. SF Rent Limit Income Limit
887
Resident
Rent
Utility
Allowance
Gross
Rent
98 985
1385 140 1525
3 BR 7 1100 1446 140 1586 50% MTSP 50% MTSP
3 BR 3 1100 1763 140 1903 60% MTSP 60% MTSP
4 BR 4 1300 1608 161 1769 50% MTSP 50% MTSP
Parking Vacancy 0.0%
Other Income 5,500$ 110$ Commercial Vacancy 0.0%
INCOME & EXPENSE UNDERWRITING
Income Amount Per Unit Residential Vacancy 7.0%
TOTAL 50
4 BR 2 1300 1962 161 2123 60% MTSP 60% MTSP
1 BR 4 650 887 98 985 30% MTSP 30% MTSP HPH, HS
50% MTSP 50% MTSP HIGH HOME
2 BR 2 925 1200 120 1320 50% MTSP 50% MTSP HIGH HOME
60% MTSP 60% MTSP2 BR 5 925 1527 120 1647
3 BR 2 1100
OVERALL SITE
US-12
BA
K
E
R
P
A
R
K
R
D
MEDINA, MN / 01.17.2023 / 22-0022
Melrose Commons
1CONCEPT PLAN
SITE PLAN
PLAY AREA
COURTYARD
BICYCLE RACKS
TRASH / SERVICE
SURFACE PARKING
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
4
BIKE
STORAGE
MANAGEMENT
COMMUNITY
ROOM
852 SF
WELLNESS /
ACTIVITY
417 SF
ELEC WATER
LOUNGE
285 SF
2 BR UNIT
944 SF
2 BR UNIT
944 SF
2 BR UNIT
890 SF
2 BR UNIT
890 SF
TRASH /
RECYCLING
2 BR UNIT
900 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
3 BR UNIT
1,104 SF
4 BR UNIT
1,358 SF
1 BR UNIT
640 SF
2 BR UNIT
900 SF
1 BR UNIT
640 SF
MA
I
L
LA
U
N
D
R
Y
0 5 10
SUPPROTIVE
SERVICES
OFFICE
MANAGEMENT
OFFICE
COMPUTER
LAB
-
---
4 BR UNIT
1,351 SF
3 BR UNIT
1,158 SF
MAIN LEVEL
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
5
PACKAGE
BIKE
STORAGE
MANAGEMENT
COMMUNITY
ROOM
860 SF
WELLNESS /
ACTIVITY
417 SF
ELEC WATER
LOUNGE
285 SF
2 BR UNIT
944 SF
2 BR UNIT
944 SF
2 BR UNIT
890 SF
2 BR UNIT
890 SF
TRASH /
RECYCLING
3 BR UNIT
1,158 SF
2 BR UNIT
900 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
3 BR UNIT
1,104 SF
4 BR UNIT
1,358 SF
1 BR UNIT
640 SF
2 BR UNIT
900 SF
3 BR UNIT
1,158 SF
1 BR UNIT
640 SF
MA
I
L
LA
U
N
D
R
Y
0 5 10
OFFICE
OFFICE
COMPUTER
LAB
-
---
LOUNGE
285 SF
2 BR UNIT
944 SF
2 BR UNIT
944 SF
2 BR UNIT
890 SF
2 BR UNIT
890 SF
3 BR UNIT
1,081 SF
4 BR UNIT
1,318 SF 3 BR UNIT
1,042 SF
3 BR UNIT
1,158 SF
2 BR UNIT
900 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
3 BR UNIT
1,104 SF
4 BR UNIT
1,358 SF
1 BR UNIT
640 SF
2 BR UNIT
900 SF
3 BR UNIT
1,158 SF
2 BR UNIT
869 SF
LA
U
N
D
R
Y
1 BR UNIT
640 SF
0 5 10
-
---
UPPER LEVELS
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
6
EXTERIOR RENDERING
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
11
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
0 5 10
TOP OF FOOTING
794'-0"
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
0 5 10
EXTERIOR ELEVATIONS
SOUTH ELEVATION
WEST ELEVATION
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
12
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
TOP OF FOOTING
794'-0"
0 5 10
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
0 5 10
EXTERIOR ELEVATIONS
NORTH ELEVATION
EAST ELEVATION
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
13
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
TOP OF FOOTING
794'-0"
3 BR UNIT
1,158 SF
3 BR UNIT
1,158 SF
3 BR UNIT
1,158 SF
2 BR UNIT
900 SF
2 BR UNIT
900 SF
2 BR UNIT
900 SF
1 BR UNIT
627 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
1 BR UNIT
640 SF
4 BR UNIT
1,358 SF
4 BR UNIT
1,358 SF
4 BR UNIT
1,358 SF
2 BR UNIT
869 SF
2 BR UNIT
869 SF
LAUNDRY
LAUNDRY
LAUNDRY CORRIDORWELLNESS /
ACTIVITY
417 SF
3 BR UNIT
1,081 SF
3 BR UNIT
1,081 SF
LEVEL 1
800'-0"
LEVEL 2
810'-5 7/8"
ROOF
830'-0 7/8"
LEVEL 3
820'-11 3/4"
TOP OF FOOTING
794'-0"
0 5 10
BUILDING SECTION
DESIGN SUMMARYMEDINA, MN / 07.14.2022 / 22-0022
Melrose Commons
14
Affordable Housing Page 1 of 3 December 20, 2022
Discussion City Council Worksession
TO: Mayor Martin and Members of the City Council
FROM: Dusty Finke, Planning Director
DATE: December 13, 2022
MEETING: December 20, 2022 City Council Worksession
SUBJECT: Affordable Housing Discussion
Background
The City of Medina has identified certain goals related to housing within its Comprehensive Plan
and in connection with the decision to participate in the Livable Communities Act (LCA). One
of the Goals of the Comprehensive Plan is to “provide opportunities for a diversity of housing at
a range of costs to support residents at all stages of their lives.”
For the 2020-2030 decade, the Metropolitan
Council projected Medina’s share of the
regional affordable housing need at different
income levels to be:
To participate in LCA, Medina agreed to the following housing goals for 2021-2030:
Decade Affordable Housing Goal Life-cycle Housing Goal
2021-2030 134-244 282
The LCA goals are similar to the allocation of affordable housing need projected by the
Metropolitan Council.
Actions to Support Creation and Preservation of Affordable Housing
There are various actions and programs which a community may take part in to support the
creation and preservation of affordable housing. A list of common tools and resources is
described in the Housing Chapter of the City’s Comprehensive Plan (attached for reference).
There is also additional information available on many of the tools on the Metropolitan Council
website: https://metrocouncil.org/Handbook/Resources.aspx#tab_3
Many of these actions and program include the provision of funding. Such options include
• Tax Increment Financing (city)
• Tax Abatement (city, multi-jurisdictional)
• Fee reductions, direct support (city)
• Minnesota Housing Consolidated Request for Proposal (state)
• Livable Communities Act Demonstration Account (Met Council)
# of
units
3-BR
Rent
Owner-
Occupied
Price
At or Below 30% AMI 142 $915 $129,100
From 31 to 50% AMI 102 $1,525 $227,100
From 51 to 80% AMI 0 $2,440 $355,600
Total Units 244
MEMORANDUM
Work Session Agenda Item #3
Affordable Housing Page 2 of 3 December 20, 2022
Discussion City Council Worksession
• Community Development Block Grants (CDBG – funds pooled from communities and
administered by Hennepin County)
• Affordable Housing Incentive Fund (AHIF), HOME Program (Hennepin County)
• Grants/interest-free loans for home improvements (Hennepin County, city)
The City has budgeted approximately $57,000/year since 2020 for local funding support of
affordable housing. These funds have been aggregating and staff seeks Council discussion on
how best to allocate the funds (see discussion below).
The Medina Economic Development Authority (MEDA) has also pledged support for TIF
financing for a 50-unit affordable housing project located west of Baker Park Road, north of
Highway 12. This project intends to request assistance via tax credits from Minnesota Housing’s
Consolidated RFP.
City policy can also support affordable housing. For example, the City has enacted the following
regulatory incentives for affordable housing:
• Allowance for additional density in R3 and R4 district
• Points within the staging plan flexibility
• Allowance of accessory dwelling units
Other regulatory/policy options which are not currently adopted but could be investigated by the
City include:
• Inclusionary zoning/Mixed-Income requirements – several communities have adopted
requirements that certain types of developments provide some amount of affordable housing.
Generally, this requirement is triggered on projects where the community provides funding
assistance, or has a higher level of discretion such as Comp Plan Amendments, PUDs. These
requirements vary in terms of their applicability and how high the requirement is. Some of
the communities also allow a payment in-lieu to an affordable housing trust fund.
• Increasing maximum density allowances, reducing/eliminating minimum lot size
requirements
Council Direction Requested
As a condition of enrolling in LCA program, the City is required to create a plan which describes
the actions the City intends to take over the next eight years to meet the LCA goals noted above.
Staff intends this discussion as a kick-off for this work.
Discuss Goals
The Housing Chapter of the City’s Comprehensive Plan (attached for reference) includes some
general objectives in addition to the LCA goals. Communities often identify more specific goals
within a Housing Action Plan. Following is a list of other types of goals which may be
considered:
• Support development of new senior housing options – may specify independent or
supportive
• Support the ability of seniors to stay in their homes
• Support creation of additional market-rate rental options with more than 2 bedrooms
• Support development of owner-occupied housing affordable to households at 100%-
125% of AMI
Affordable Housing Page 3 of 3 December 20, 2022
Discussion City Council Worksession
• Support preservation and improvement of owner-occupied naturally occurring affordable
housing
Staff seeks feedback from the Council on what goals, if any, the Housing Action Plan should
concentrate on beyond supporting development of units consistent with LCA goals.
Affordable Housing Fund
Since 2020, the City Council has budgeted approximately $57,000 annually to support affordable
and lifecycle housing. These funds have been set aside within reserves for this purpose, and are
set based upon the minimum ALHOA (affordable and lifecycle housing opportunity amount) that
communities which enroll in LCA are supposed to spend on an annual basis.
Depending on the housing goals which are of interest to the Council, staff seeks Council
direction on how to utilize these funds. Preliminarily, staff has considered whether to tie these
funds specifically to the City’s affordable housing allocation and LCA goals of creating 142
units affordable at 30% AMI and 102 units affordable at 50% AMI. For example, the City could
earmark the $570,000 estimated to be levied over the decade to provide approximately $2300 of
financial support ($570,000/244 units=$2,336/unit) for each unit created. Rather than a direct
payment, this amount could be provided in fee waivers, and reimbursed from the amount.
The Council could have a less formulaic strategy to expend these funds, but staff believes it is
important to provide some guidance on how the funds are to be utilized. Staff believes pledging
a specific amount per unit would be straightforward to administer. Depending on the goals the
Council would like to invest in, these funds could be used for other programs. Certain programs
(such as home rehabilitation loans) could require significant administrative costs.
TIF Guidance
Staff would intend to include general guidance within the action plan related to Tax Increment
Financing (TIF). TIF is one of the most common and significant tools which the City can
consider to meet its housing goals. Staff believes it is in the City’s interest for the housing action
plan to provide at least general guidance in the type of projects where the City would prioritize
TIF.
Additional information on programs/policies
Staff seeks feedback on whether there are programs/policies noted above which the Council
would like to hear more information. Conversely, if there are policies which the Council does
not want to investigate further, staff would request that feedback.
Next Steps
Staff will take the feedback provided by Council to begin the draft Housing Plan for Council
review at a future date.
If the Council would like additional details on any programs or policies in the meantime, the
Council can request that as well.
Attachment
1. Housing Chapter
MEMORANDUM
TO: Mayor Martin and Members of the City Council
FROM: Erin Barnhart, Finance Director
DATE: May 2, 2023
SUBJ: Classification and Compensation Discussion
Background
Historically, the City of Medina organizational philosophy values a smaller staff that fulfills a
wide variety of roles in the organization. The City of Medina’s approach to staffing has involved
recruiting and retaining highly qualified, highly productive, dedicated employees to the
workforce. Historical retention efforts have included exceedingly competitive benefits and
compensation, utilization of new technologies to provide better efficiencies, and providing a
quality work environment. Consultants have been used frequently to assist staff and Council to
achieve goals and meet demands for services. The result of this strategy has allowed for a
smaller team-oriented and efficient staff by comparison to similar municipalities in the number
of full-time equivalent (FTE) employees.
The proposed DDA plan is based on comparable organizations and the recommendations
outlined in the DDA report to incorporate the continuance of this historical strategy by the City
of Medina. Mark Goldberg from DDA will be at the Work Session to present the findings of
their classification and compensation study for the City of Medina.
Work Session Agenda Item III
City of Medina
Employee Total Compensation Pay Scale 2023
Pay Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
1
PT CSO
($28,174)PD Office Asst ($75,975) PT Office Asst Admin ($36,907)
2
3
Permit Tech ($85,08)
Accounting Tech ($87,159)PW Admin Asst ($100,150) PD Admin Asst ($100,141)
4
PW Tech ($86,160)
PT PW Tech ($42,554)PW Tech ($113,287)Non‐exempt; except City Clerk
5 City Clerk/Asst to CA ($90,706)Acctountant ($105,525)
PW Feld Insp ($121,469)
PW Water Tech ($119,732)
6
Officer ($139,973)
Officer ($115,735)
Officer ($126,011)
Officer ($132,478)
Officer ($124,328)
Officer ($134,377)
Officer ($133,562)
Officer ($133,912)
Officer ($130,453)
Associate Planner ($124,855)
PW Foreman ($114,141)
7
8 Sergeant ($149,893)
9
Finance Director ($139,781)
Planning Director ($151,377)
PW Director ($157,913)
10 Public Safety Dir ($171,762)Exempt
11 City Administrator ($171,675)
Police Officers Union Contract
Step 1 Start $32.47
Step 2 After 1 Year $36.02
Step 3 After 2 Years $39.53
Step 4 After 3 Years $43.12
Grade Position Longevity in Years Base Salary PERA Health Premium HSA Contribtion Dental Life Insurance Total
PT CSO 0.5 $26,208.00 $1,965.60 $28,173.60
PT CSO 0.5 $26,208.00 $1,965.60 $28,173.60
1‐2 PT Office Assistant 3 $34,332.00 $2,575.00 $36,907.00
1‐2 Police Office Assistant Vacant $54,080.00 $2,643.80 $15,000.00 $3,000.00 $1,225.00 $27.00 $75,975.80
3 P.W. Administrative Assistant 2.5 $67,828.25 $5,087.12 $22,983.00 $3,000.00 $1,225.00 $27.00 $100,150.37
3 Police Administrative Assistant 15.75 $72,107.11 $5,408.03 $18,987.00 $3,000.00 $612.00 $27.00 $100,141.14
3 Accounting Technician 0.1 $63,169.60 $4,737.72 $15,000.00 $3,000.00 $1,225.00 $27.00 $87,159.32
3 Planning/Building Permit Technician 0.2 $64,076.13 $4,805.71 $12,562.00 $3,000.00 $612.00 $27.00 $85,082.84
3‐4 Public Works Tech 8 $78,618.10 $5,896.36 $23,988.00 $3,000.00 $1,758.00 $27.00 $113,287.46
3‐4 Public Works Tech 1 $71,853.36 $5,389.00 $5,279.00 $3,000.00 $612.00 $27.00 $86,160.36
3‐4 PT Public Works Tech 1 $39,585.00 $2,968.88 $42,553.88
4‐5 Field Inspector 13 $85,669.33 $6,425.20 $25,122.00 $3,000.00 $1,225.00 $27.00 $121,468.53
4‐5 Public Works Water 16.5 $85,671.02 $6,425.33 $23,384.00 $3,000.00 $1,225.00 $27.00 $119,732.35
5 Accountant 8.7 $80,733.47 $6,055.01 $14,485.00 $3,000.00 $1,225.00 $27.00 $105,525.48
5‐6 City Clerk 1.5 $76,196.88 $5,714.77 $5,155.00 $3,000.00 $612.00 $27.00 $90,705.64
5‐6 Officer 20 $96,047.42 $17,000.39 $22,122.00 $3,000.00 $1,758.00 $45.00 $139,972.82
5‐6 Officer 7.5 $89,696.88 $15,876.35 $6,505.00 $3,000.00 $612.00 $45.00 $115,735.23
5‐6 Officer 5.7 $89,696.88 $15,876.35 $15,635.00 $3,000.00 $1,758.00 $45.00 $126,011.23
5‐6 Officer 25 $89,696.88 $15,876.35 $22,102.00 $3,000.00 $1,758.00 $45.00 $132,478.23
5‐6 Officer 19.5 $89,696.88 $15,876.35 $14,485.00 $3,000.00 $1,225.00 $45.00 $124,328.23
5‐6 Officer 0.5 $92,696.88 $15,876.35 $21,001.00 $3,000.00 $1,758.00 $45.00 $134,377.23
5‐6 Officer 19 $89,696.88 $15,876.35 $23,186.00 $3,000.00 $1,758.00 $45.00 $133,562.23
5‐6 Officer 3 $89,696.88 $15,876.35 $23,536.00 $3,000.00 $1,758.00 $45.00 $133,912.23
5‐6 Officer 2 $89,696.88 $15,876.35 $20,077.00 $3,000.00 $1,758.00 $45.00 $130,453.23
6 Associate Planner 15 $91,662.48 $6,874.69 $21,533.00 $3,000.00 $1,758.00 $27.00 $124,855.17
6 P.W. Foreman 15 $91,662.90 $6,874.72 $11,351.00 $3,000.00 $1,225.00 $27.00 $114,140.62
8 Sergeant 22 $104,913.92 $18,569.76 $21,606.00 $3,000.00 $1,758.00 $45.00 $149,892.68
9 Finance Director 15.5 $120,640.00 $9,048.00 $6,454.00 $3,000.00 $612.00 $27.00 $139,781.00
9 P.W. Director 29 $120,640.00 $9,048.00 $23,973.00 $3,000.00 $1,225.00 $27.00 $157,913.00
9 Planning Director 17 $120,640.00 $9,048.00 $16,904.00 $3,000.00 $1,758.00 $27.00 $151,377.00
10 Public Safety Director 22.5 $123,492.51 $21,858.17 $22,033.00 $3,000.00 $1,351.00 $27.00 $171,761.69
11 City Administrator 11.5 $137,280.00 $10,296.00 $19,314.00 $3,000.00 $1,758.00 $27.00 $171,675.00
$2,653,890.53 $303,691.64 $493,762.00 $84,000.00 $37,144.00 $936.00 $3,573,424.16
Market Study Update May 2023
Overview of Market Analysis
Market Data and Analysis
General Observations
Answer Questions
Agenda
Peer
OrganizationsGeographic
Proximity
Population
Size
Services
Provided
To whom are
you losing
employees?
From where
do you recruit
employees
from?
DDA has partnered with the City to select a group of cities and counties with
whom the City competes for talent. Here are some factors that were
considered when selecting this group:
Market Analysis
When DDA reviews the positions in other organizations, we only use
the match if at least 80% of the duties are close to the position at
the City.
In reviewing the salary information, if one of the organizations pays
significantly more or less than the others, we will remove that data
point from the analysis (but will still show the data) so the City can
decide if they want to include the information.
The data and related analyses were reviewed by a Consultant who
has been involved in the project and other staff members to ensure
applicability, validity, accuracy, and consistency of the data.
Market Analysis
DDA gathered updated rosters for all survey
participants
All data is from 2023, most of it was collected in
April 2023
All positions have at least 5 market matches.
DDA will never report on the market for any
position that has less than 5 respondents, as there
is too strong a possibility of one organization
affecting the results.
Market Analysis
Salary Ranges
A salary range is the range of pay established by
employers to pay employees performing a
particular job or function.
Salary ranges have a minimum pay rate, a
maximum pay rate, and a midpoint
The salary range is determined by conducting a
market analysis.
Market Analysis
Salary Range Width
This is the distance between salary range
minimum and maximum.
Range width varies widely by organization due
to different compensation philosophies.
Market Analysis
DDA gathered data from the following Cities
Market Data
Albertville
Belle Plaine
Corcoran
Dayton
Delano
Mahtomedi
Minnetrista
Mound
Rockford
New Prague
North Oaks
Orono
Victoria
Shorewood
Wayzata
South Lake Minnetonka
Three Rivers Park
West Hennepin
Rogers
Deephaven
For Police
Market Comparison
For each position the percentage difference has been calculated between the
City’s figure and the market.
If the figure is:
‒Positive (+) : Figure indicates that the City pays above the market
‒Negative (-) : Figure indicates that the City pays below the market
The following guidelines are used when determining the competitive
nature of current actual compensation:
+/-5% (Highly Aligned with the market)
+/-10% (Aligned with the market)
+/-11-15% (Possible misalignment with the market)
> 15% (Significant misalignment with the market)
Market Data –Base Salary
Market Comparison
When DDA compares the actual salaries of survey benchmark positions to
the median of the market we find that the City, on the aggregate is:
Based on these comparisons the City would be considered
“aligned with the market”
Details for the market for all positions are included on the next few slides.
Cells in green are more than 10% above market, cells in red are more than 10%
below market
Market Data –Base Salary
Median Actual Pay City Range Min Compared
to Market Min
City Range Max Compared
to Market Max
All 2.86%-3.22%-0.91%
Market Data –Base Salary
Job Title
Medina
MIN
Medina
MAX
Medina
Actual
Bench
MIN
Bench
MAX
Bench
Actual
Curr Min
% of
Bench
Min
Curr Max
% of
Bench
Max
Medina %
of Bench
Actual
Medina
Range
Spread
Bench
Range
Spread
CSO $21.00 $25.00 $25.20 $21.90 $27.76 $25.56 96%90%99%27%
Office Assistant (Grade 1-2)$22.56 $31.80 $23.90 $31.03 $26.01 94%102%41%30%
PD Admin Asst $24.58 $34.67 $34.67 $27.51 $34.60 $33.10 89%100%105%41%26%
PW Admin Asst $24.58 $34.67 $32.61 $25.92 $31.61 $27.81 95%110%117%41%22%
Accounting Technician $26.82 $34.67 $30.81 $27.28 $35.38 $30.87 98%98%100%29%30%
Public Works Tech $29.22 $41.19 $36.17 $26.62 $34.00 $31.20 110%121%116%41%28%
Public Works Water $29.22 $41.19 $41.19 $28.27 $35.90 $32.14 103%115%128%41%27%
P.W. Foreman $31.82 $44.07 $44.07 $33.20 $42.12 $39.96 96%105%110%38%27%
Assistant to CA / City Clerk $32.33 $44.07 $36.63 $34.44 $43.20 $38.82 94%102%94%36%25%
Associate Planner $32.33 $44.07 $44.07 $30.73 $38.62 $34.91 105%114%126%36%26%
Accountant $32.33 $41.19 $38.81 $31.92 $45.60 $39.48 101%90%98%27%43%
Patrol Officer $32.47 $43.12 $43.12 $33.51 $45.96 $46.36 97%94%93%33%37%
Investigator $40.97 $44.56 $44.56 $36.96 $47.58 $46.13 111%94%97%9%29%
Sergeant $39.61 $50.44 $50.44 $43.77 $53.34 $56.06 91%95%90%27%22%
Finance Director $45.52 $58.00 $58.00 $50.72 $64.55 $60.94 90%90%95%27%27%
P.W. Director $45.52 $58.00 $58.00 $50.50 $65.52 $60.68 90%89%96%27%30%
Planning Director $45.52 $58.00 $58.00 $46.23 $59.61 $57.14 98%97%102%27%29%
Public Safety Director $48.05 $61.24 $59.37 $52.85 $70.03 $65.24 91%87%91%27%33%
City Administrator $53.35 $67.99 $66.00 $59.81 $75.43 $69.59 89%90%95%27%26%
96.78%99.09%102.86%32.16%28.52%
Market Data –Base Salary
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Pay Ranges: Medina & Benchmark Averages
Medina MIN Medina MAX Bench MIN Bench MAX
General Observations
The overall structure is market competitive currently,
but we are expecting more salary structure movement
in 2023 and beyond as more contracts are settled and
cities adjust their existing structures
Public Works positions are well positioned against the
market
General Observations
Management level positions are, in general, paid lower
compared to the market. Options to address this could
include:
Adding steps to the structure
Adding grades to the structure
Adjusting the differential from one grade to the next
It is generally not recommended to only adjust one
grade or position and no other, as it can cause
compression or inequity within the salary structure
Questions