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HomeMy WebLinkAbout2008/11/10 - ADMIN - Agenda Packets - City Council - Study SessionREVISED AGENDA CITY COUNCIL STUDY SESSION NOVEMBER 10, 2008 6:30 P.M. CITY HALL COUNCIL CHAMBERS Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning 3. 6:35 p.m. Business Terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project* 2. 7:20 p.m. Legislative Update* 4. 8:05 p.m. Comprehensive Plan Update 5. 8:20 p.m. 2009 Budget and Levy 6. 9:20 p.m. Communications (Verbal) 9:30 p.m. Adjourn Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. *The order of these two items has been changed, however they have not been renumbered due to prior distribution of the reports. Meeting Date: November 10, 2008 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Future Study Session Agenda Planning – November 17 and November 24, 2008. RECOMMENDED ACTION: Council and the City Manager to set the agenda for the special study session planned for Monday, November 17, 2008 and the regularly scheduled study session on Monday, November 24, 2008. POLICY CONSIDERATION: Does the Council agree with the agenda as proposed? BACKGROUND: At each study session, approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the tentative agenda and proposed discussion items for the special study session on November 17, 2008 and the regularly scheduled study session on November 24, 2008. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachment: Future Study Session Agenda Planning for November 17 & 24, 2008 Prepared by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting of November 10, 2008 (Item No. 1) Page 2 Subject: Future Study Session Agenda Planning Future Study Session Agenda Planning Tentative Discussion Items Special Study Session, Monday, November 17, 2008 –7:00 p.m. 1. Friends of the Arts Update (Tentative) – Representatives of Friends of the Arts will be in attendance to provide an annual update on their activities, accomplishments, etc. End of Meeting: 7:25 p.m. Tentative Discussion Items Council Photograph Session (Box Lunches) – 6:00 p.m. Study Session, Monday, November 24, 2008 – 6:30 p.m. 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. TH7 & Wooddale Design Schedule/Financing – Administrative Services, Finance, Public Works (60 minutes) Staff is returning to the Council to discuss the design schedule and financing for the TH7 & Wooddale Avenue Grade Separated Intersection. Does the Council wish staff to pursue the proposed financing options for this project? Does the Council agree to the design schedule for this project? 3. Utility Rate Study – Finance Department (45 minutes) Staff to discuss the utility rate study findings and recommendations with Council. Does the Council wish to adopt the study’s recommendations? 4. CIP/2009 Budget/Financial Management Plan – Finance (60 minutes) Staff will lead Council in a discussion about the 5-year CIP and the Financial Management Plan prior to the adoption of the 2009 budget. Also, any remaining discussion regarding the 2009 budget in general can also occur along with the discussion. Does the Council want to direct staff to make any changes prior to the adoption of the budget in December? 5. Communications – Administrative Services (10 minutes) Time for communications between staff and Council will be set aside on every study session for the purposes of information sharing. Reports: ƒ October Financial Reports – Finance ƒ Energy Analysis Update – Inspections End of Meeting: 9:30 p.m. Meeting Date: November 10, 2008 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Legislative Update. RECOMMENDED ACTION: Staff has prepared a draft list of legislative issues and priorities for Council’s review and discussion. No formal action is required at this time. It is proposed that the City Council discuss these and possibly other issues and concerns with legislators and appointed officials at a study session in January 2009. POLICY CONSIDERATION: Does the Council agree with the issues identified in the attached report regarding priorities for 2009? What else would Council like staff to pursue legislatively? Is Council satisfied with the approach that staff and the legislative consultants are recommending? BACKGROUND: Staff has prepared the attached preliminary list of issues and concerns that we feel should be made known to our legislators. As has been the case in previous years, as we near the start of the 2009 legislative session and we hear from you, additional issues may come to light. Securing funding for major transportation projects has been the primary focus of the city’s legislative initiatives in 2008. There is a possibility that the city could receive substantial funding for the TH7 & Louisiana grade separated intersection through the reauthorization of the federal surface transportation bill, SAFETEA-LU, which expires in September 2009. It has been our practice to retain lobbying services to help us with legislative and regulatory issues. Administrative Services has been pleased with the legislative services of Doug Franzen and Vic Moore, (formerly of Rider Bennett, now employed with Franzen & Associates), and Dennis McGrann of Lockridge, Grindal, Nauen. Mr. Franzen, Mr. Moore, and Mr. McGrann have been invited to the meeting and will be a part of this discussion. FINANCIAL OR BUDGET CONSIDERATION: Funding for our lobbyists is included in the City/EDA budgets. Meeting of November 10, 2008 (Item No. 2) Page 2 Subject: Legislative Update VISION CONSIDERATION: Promoting regional transportation issues and securing transportation funding is aligned with the Council’s Strategic Direction of Connected and Engaged. Staff has aligned 2008-09 activities to promote specific intersections, transportation corridors and projects. Attachments: 2009 Legislative Issues and Priorities Prepared by: Marcia Honold, Management Assistant Approved by: Tom Harmening, City Manager Meeting of November 10, 2008 (Item No. 2) Page 3 Subject: Legislative Update City of St. Louis Park 2009 Legislative Issues and Priorities - Preliminary 1. Glencoe Switching Yard Purpose: To secure the remaining $3.06 million for a $4.06 million project to construct a rail switching yard in Glencoe, Minnesota that would create economic development for Glencoe and would relocate the Twin Cities & Western Railroad’s train blocking operations from St. Louis Park, Hopkins and Minnetonka. Status: A capital budget request in the amount of $700,000 was approved during the 2006 legislative session thanks to the tireless efforts of St. Louis Park’s elected officials, and $300,000 in local matches have been secured. Staff and MnDOT are working on a grant application to the Federal Rail Administration for the remaining project dollars. The deadline for the grant is November 28, 2008; the state will be notified of the FRA’s decision by spring 2009. Background: In 2001, the St. Louis Park Railroad Advisory Task Force recommended that the Twin Cities and Western Railroad’s (TC&W) blocking operations be eliminated in St. Louis Park, Hopkins and Minnetonka and relocated to a new switch yard west of the three cities. The TC&W blocking operations generate noise levels that exceed the state of Minnesota nighttime noise standards. In addition, the switching operations cause vibrations and they often disrupt local transportation systems because at-grade crossings are temporarily blocked by trains conducting switching operations. The Glencoe Railroad Congestion Mitigation Project involves constructing four siding tracks to accommodate the anticipated amount of rail car maneuvering/switching operations at this new facility. It is a nine acre site and the City of Glencoe was selected as the preferred site for a switch yard because it would consolidate operations, it would provide for noise mitigation for residents in Glencoe (existing rail car maneuvers would be relocated to the west or east side of town), and it would provide opportunities for economic development. Anticipated project costs of $4,060,000 for the yard include the land acquisition, construction management and design costs. Proposed funding sources include $4.6 million of federal and state funds, and $300,000 from a local match e.g. cities, railroad etc. The site will be owned by the McLeod County Rail Authority and be operated by TC&W. Construction start date, assuming funding is secured, is planned for September 2009; the yard is expected to be fully operational by the fall of 2010. If federal funding is not approved, staff will prepare a request for funding in FY2010 sometime in February 2009. Meeting of November 10, 2008 (Item No. 2) Page 4 Subject: Legislative Update 2. Grade Separated Crossing at Hwy 7 and Wooddale Purpose: To secure an additional $9 - $11 million to construct a $20 million grade separated intersection (interchange) at Highway 7 and Wooddale Avenue. Status: Staff successfully secured $5.8 million in STP funding through the Metropolitan Council’s TAB process in March 2006. More than $3 million in right-of-way purchases have been completed by the city at its cost and initiative in anticipation of this project. Staff has been working to identify additional sources of funding for remaining project dollars. It is expected that this project will be let for bid in spring/summer 2009. Background: This project will require a combination of local, county, state and Federal dollars to finance the reconstruction of the at-grade intersection of Highway 7 and Wooddale Avenue in St. Louis Park to a grade separated intersection. Currently, the capacity and safety of this at-grade signalized intersection could be characterized as poor at best. Based on a recent traffic analysis, the intersection is currently operating at a level of service D. This project will allow for the separation of regional and local traffic which will vastly improve the regional transportation systems. The regional systems alluded to are Hwy 7, the Southwest LRT Regional Trail immediately to the south, and the proposed future dedicated bus way or LRT system. Currently, as part of Hennepin County’s Southwest Corridor transit study, a transit station is proposed adjacent to the intersection of Hwy 7 and Wooddale. Without this intersection improvement project, these other regional systems will likely not be possible or the operation of existing ones will continue to worsen due to congestion and safety concerns. Reconstruction of this intersection to a grade separated intersection is the only practical long term solution to this infrastructure problem. Finance and Public Works staff will be meeting with the Council on November 24 to discuss funding and possible revenue sources this project. Options the city is pursuing include the development fund/HRA Levy, Elmwood TIF, Hennepin County, Mn/DOT (Contribution & Const. Eng. Services), Mn/DOT (Municipal Agreement Program), and Land Sale (Soomhek Rug / STEP building parcel). 3. TH 100 Full Build Project Purpose: To keep the TH 100 Full Build Project on track for its proposed bid 2014 letting date. Status: In the Metropolitan Council’s draft 2030 Transportation Policy Plan, the TH100 full build project has been identified as an expansion project. This means that if the plan, as adopted, would place this project on hold until 2010 when the policy plan amendment is adopted. The TH100 project is among several other identified “expansion” projects, identified in the 2004 TIP, which will be re-scoped to see if they can be built at a lower cost. Meeting of November 10, 2008 (Item No. 2) Page 5 Subject: Legislative Update If the project proceeds, it will be on a smaller scale than originally proposed by MnDOT. MnDOT is still working on the revised configuration and staff estimates that the final design will cost approximately $75 million, which is half of the original project cost. In addition, the draft 2030 plan also identifies the bridges that span TH100 at Hwy 7 and Hwy 5 as structurally deficient. Each bridge is classified as Tier II, which means that the bridges need to be replaced by 2018. It is unclear how the bridges classifications will affect the TH100 Full Build project. Staff will raise these concerns with the Council in our comments on the draft 2030 plan. Background: The 2006 interim project added a third lane in each direction by decreasing lane widths from 12 feet to 11 feet and eliminating or severely reducing shoulders along that stretch of highway. The third lane is required for the full build project so that MnDOT can keep a minimum of two lanes open in each direction during construction. Improvements not included as a part of the interim project include construction of the noise walls, which MnDOT agreed to construct no later than 2015, width expansion of lanes, construction of on/off ramps, and bridge and storm water improvements. Bridges spanning TH 100 at Hwy. 7 and Hwy 5, and storm sewers conveyance systems have no more than 10-15 years of useful life left and are deteriorating. In addition, there are approximately 20 residents who live in uncertainty because their homes are within the future right-of-way of the new project. 4. Grade Separated Crossing Project at Highway 7 & Louisiana Avenue Purpose: To secure $13 million to construct a $20 million grade separated intersection (interchange) at Highway 7 and Louisiana Avenue. Status: The project is programmed to be constructed in 2011-2012, and would provide for a separated grade interchange. This project will not only mitigate congestion and accidents at the intersection itself, but will accommodate further growth and redevelopment in the immediate area, including current expansion at Methodist Hospital, a future nearby light rail station, and other adjacent redevelopment activity. The City of St. Louis Park has received $7.0 million from the Metropolitan Council and Transportation Advisory Board in accordance with the federal Surface Transportation Program (STP) for the construction of this grade separated crossing. Background: The city owns the property or right of way in all four quadrants of the intersection so right of way acquisition for this project will not be necessary or minimal. It is expected to construct this project between 2012 and 2015. Meeting of November 10, 2008 (Item No. 2) Page 6 Subject: Legislative Update This project will require a combination of local, state and federal dollars to finance the reconstruction of the at-grade intersection of Highway 7 and Louisiana Avenue in St. Louis Park to a grade separated intersection. Staff is actively pursuing SAFETEA-LU funding for this project. 5. Levy Limits and LGA Background: The city would like to see the 3.9% levy cap overturned during the 2009 legislative session. If the levy limits remain in place, then the formula used to calculate the limits needs to be reviewed. The formula used in the past results in St. Louis Park having an extremely limited ability to even account for inflationary increases. Staff would like to see the state adopt an LGA formula distribution that would establish some minimum per capita amount for cities currently not receiving any aid before any increases to other cities already in the distribution. 6. Other Legislative Issues Residential Care Facilities The League of Minnesota Cities has convened a stakeholder group made up of local, state and county entities as well as care providers to discuss issues related to residential care facilities (formerly known as group homes). Vic Moore co-chairs this group and the hope is for the providers, the LMC and the other government agencies to agree on a 2009 Legislative platform if it is needed. Elmwood TIF District Staff is working with our state delegation to change the designation of the Elmwood TIF District. Currently, the Elmwood TIF District is a Renovation and Renewal district that expires in 2019. If the state legislature would change the designation to that of a Redevelopment district, then the life of the district would extend an additional 10 years and help pay for the full cost of the Hwy 7/Wooddale intersection without much in the way of MN DOT assistance. Housing Improvement Areas In 1996, the state legislature granted cities the authority to establish Housing Improvement Areas (HIA) without special legislation. This legislation will sunset on June 30, 2009. Vic Moore has been working with our state delegation to introduce a bill that would remove the sunset provision. St. Louis Park has found the HIA legislation to be a valuable tool for reinvestment in condominium neighborhoods. Additional Items for the LMC and AMM: In addition to the Levy limits and concerns about the state’s distribution of LGA, there are three other financial issues that the city would like to see addressed: • No sales tax on city purchases similar to school districts • Truth-in-taxation notices – state should change the form so it shows change in property value and increase in city levy • Market Value Homestead Credit – index the formula for inflation Meeting Date: November 10, 2008 Agenda Item #: 3 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Business Terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project. RECOMMENDED ACTION: Staff would like to discuss and receive feedback from the EDA/City Council on the proposed business terms that would serve as the basis for a Redevelopment Contract with Bader Development related to its Ellipse on Excelsior project. If generally acceptable, staff will request the EDA’s attorney to incorporate these terms into a formal Redevelopment Contract with the Redeveloper. The EDA/Council will be asked to schedule a public hearing in the near future to formally consider the creation of a Redevelopment TIF District to facilitate the proposed project once language related to specific terms within the Redevelopment Contract has been satisfactorily negotiated. POLICY CONSIDERATION: Does the EDA/City Council support the business terms proposed for inclusion within a Redevelopment Contract with Bader Development to facilitate The Ellipse on Excelsior project? BACKGROUND: Bader Development proposes to redevelop the Al’s Bar and Anderson Cleaners sites (2.28 AC) on the northwest corner of Excelsior Boulevard and France Avenue. The Redeveloper plans to remove the existing structures and construct a five-story mixed use building with 133 residential apartments and 16,383 square feet of commercial on the ground floor, with underground and surface parking. The EDA/Council reviewed the preliminary TIF application from Bader Development at the July 14, 2008 study session. The proposed project was generally acceptable and staff was directed to work further with the Redeveloper and negotiate business terms that would enable the proposed project to come to fruition. Staff, the EDA’s financial consultant and the Redeveloper have subsequently developed these terms and wish to present them to the EDA/City Council. PROPERTY VALUE: Currently, the subject nine properties have a total market value of less than $1.8 million. The projected market value of the property upon redevelopment would be nearly $18 million. The property taxes payable in 2008 on these same properties are $35,683. Upon redevelopment, the site would generate an estimated $298,823 in property taxes. Meeting of November 10, 2008 (Item No. 3) Page 2 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project REDEVELOPER’S TIF REQUEST: At the July 14, 2008 study session Bader Development requested $900,000 in tax increment assistance to address certain extraordinary costs associated with redeveloping the subject site. These included: • Architectural & engineering fees associated with site work only • Relocation of a major stormwater utility lateral • Relocation of a sanitary sewer main • Building demolition • Business reestablishment/relocation Subsequently more has been learned about the redevelopment site and Bader has more accurately estimated the construction costs of the proposed project. As a result, it has been determined that there are greater extraordinary costs than previously anticipated. Potential additional extraordinary costs are described below. 1. Soil Remediation The most significant cost increase stems from the discovery that fill material deposited on the site many years ago contained low level contaminates that nonetheless exceed state limits. Given that an underground parking ramp is integral to the proposed redevelopment and the residential nature of the project it appears that a large volume of this soil will require removal, special handling, and disposal in a permitted landfill. The total cost of remediation and oversight is estimated at $525,000. Staff discussed this cost with the Redeveloper and indicated that a majority of this cost should be the responsibility of the landowners. The property owners are not the responsible party for the contamination but nonetheless have agreed to assume 60% of these costs if the EDA agreed to provide the remaining 40% ($220,000) through tax increment financing. Environmental grants could be pursued but would not likely be obtained as the granting agencies prefer to fund projects that result in greater job creation. 2. Utility Relocations Bader has also estimated that the cost of relocating a sanitary lateral and a major stormwater lateral entirely around the subject site will cost approximately $250,000 more than previously calculated. 3. Neighborhood Requests The Redeveloper has worked diligently to satisfy neighborhood concerns regarding the proposed project. The abutting neighborhood has requested that the Redeveloper design and install traffic calming medians in France Avenue, a new neighborhood sign, and additional screening and landscaping along the north side of the subject site. The cost of these public improvements is estimated at $86,000 which was not included in the Redeveloper’s original proforma or the original development plan. Meeting of November 10, 2008 (Item No. 3) Page 3 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project 4. LEED Requirements Finally, staff requested that the Redeveloper estimate what it would cost for the proposed project to achieve Leadership in Energy and Environmental Design (LEED) certification. The Redeveloper and the EDA’s environmental consultant have estimated it would require a total of approximately $200,000 to $400,000 to achieve certification on this project. The Redeveloper has expressed interest in pursuing a “green building” and would be willing to serve as a model for future proposed “green” redevelopments in the city but only if the EDA would be willing to assume this additional cost. Staff does not feel it prudent to recommend funding this expenditure at this time. Staff would however like to discuss with the EDA at a later date how the city could further incentivize “green” development in the city. All together the above costs (minus the LEED certification) equal $1.45 million and are best estimates at this time. Staff will continue to work with the Redeveloper to refine these estimates and reduce the assistance needed wherever possible. It should also be noted that the Redeveloper has agreed to provide $50,000 toward public art at the proposed corner plaza at Excelsior Blvd and France Ave. The Redeveloper has agreed to cooperate in the city’s typical public art selection process. In return, the Redeveloper has requested that the city be responsible for the art’s ongoing maintenance and repair. Responsibility for maintenance of the plaza will be the Redeveloper’s. This is similar to other agreements the city has made with other developers. TIF Analysis Ehlers has reviewed the Redeveloper’s latest proforma. Ehlers analyzed the project in comparison with general industry standards for land price, construction costs, lease rates, return on equity/profit, various fees, etc. Overall, Ehlers confirms Bader’s updated cost and revenue assumptions remain reasonable and appropriate. In its review, Ehlers reaffirmed that the proposed project would not be feasible without the use of tax increment financing. Bader’s request for tax increment financing (TIF) assistance is considered reasonable given the complexity, quality, projected total value, and other residual economic benefits derived from the proposed redevelopment. An updated TIF cash flow analysis was also prepared for the proposed project. That analysis showed that the full $1.45 million in tax increment would likely be generated in approximately 13 years. This assumes fiscal disparities are taken from within the district (as per EDA policy), a 5% EDA administrative fee from the TIF generated by the project, and no inflation. The subject site is within the City’s Redevelopment Project Area No. 1. The proposed project would require that a new Redevelopment TIF District be created. The Redeveloper has requested that the tax increment generated to reimburse the above costs be spread between two TIF notes so as to allow the Redeveloper to sell or assign the notes if financially feasible. The EDA has made similar arrangements within the Hoigaard Village and West End project agreements. Meeting of November 10, 2008 (Item No. 3) Page 4 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project The EDA’s participation would leverage approximately $18 million in new taxable investment. As a percentage of total project cost the amount of financial assistance equals about 8% which is considered reasonable given the level of assistance required by other projects the EDA has assisted. As with other recent redevelopment projects with which the EDA has been involved, Bader has agreed to the inclusion of a "look back" provision in the redevelopment contract. Such a provision would enable the EDA to review Bader's gross margins at the earliest of (i) the date the Minimum Improvements reach 95% lease-up; (ii) the date of any Transfer in whole or in part of the Minimum Improvements; or (iii) three years after the date of issuance of the Certificate of Completion for the Minimum Improvements. The EDA proposes that any amount of return above the agreed upon maximum would be split equally between the Redeveloper and the EDA which would then reduce the amount of TIF assistance provided. This is an important provision as it ensures that if the development costs are lower, rental rates and other income are higher and/or the Redevelopment Property is subsequently sold for a higher price, the EDA shares economically in the success of the project. The parties are continuing to negotiate the exact lookback language. REDEVELOPMENT CONTRACT: A summary list of specific business terms consistent with previous redevelopment projects is attached for review and discussion. If favorably received, these terms will serve as the basis for a Redevelopment Contract with Ellipse on Excelsior LLC (Bader Development). The proposed terms are subject to further negotiation and refinement with the Redeveloper. FINANCIAL OR BUDGET CONSIDERATION: Bader Development has requested up to $1.45 million in tax increment financing to offset the extraordinary redevelopment costs associated with The Ellipse on Excelsior project. VISION CONSIDERATION: This project supports the strategic direction of being a connected and engaged community and the focus area of creating community gathering places. Attachments: Business Terms of the Redevelopment Contract with Bader Development Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Meeting of November 10, 2008 (Item No. 3) Page 5 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project DRAFT November 10, 2008 Proposed Business Terms Redevelopment Contract between City of St. Louis Park, St. Louis Park Economic Development EDA Ellipse on Excelsior LLC The Ellipse On Excelsior NW corner Excelsior Blvd. & France Ave. St. Louis Park, MN Meeting of November 10, 2008 (Item No. 3) Page 6 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project Business Terms of Redevelopment Contract Between the City of St. Louis Park, St. Louis Park EDA and Ellipse on Excelsior LLC The following are proposed Business Terms between the City of St. Louis Park (“City”), the St. Louis Park Economic Development EDA (“EDA”) and Ellipse on Excelsior LLC (“Redeveloper”), which, upon mutual agreement, will be incorporated into a Redevelopment Contract (“Redevelopment Contract”) for “The Ellipse On Excelsior” mixed use building to be constructed at the NW quadrant of Excelsior Blvd. & France Ave., St. Louis Park. 1. All parties agree that the Redeveloper will be solely responsible for the acquisition of the subject nine parcels that constitute the Redevelopment Property (Exhibit A) and that the City/EDA has no obligation to acquire the Redevelopment Property. 2. Except for any misrepresentation or any misconduct, affirmative act or negligence of the EDA or the City and except for any breach by the EDA or the City of their obligations under the Agreement, Redeveloper agrees to hold the EDA and the City harmless from any claim arising out of the presence of any hazardous wastes or pollutants existing on or in the Redevelopment Property. 3. Redeveloper agrees to submit a Voluntary Response Action plan to the MPCA and obtain all necessary approvals to properly remediate the subject property so as to allow for the construction of the Minimum Improvements. 4. Redeveloper agrees to obtain all planning approvals necessary to construct the Minimum Improvements, including without limitation a planned unit development and replat of the Redevelopment Property. 5. Redeveloper agrees that it will pay the reasonable costs of consultants and attorneys retained by the EDA in connection with the creation of the TIF District and the negotiation in preparation of the Contract and other incidental agreements and documents related to the development contemplated hereunder. Upon termination of the Contract, the Redeveloper remains obligated for costs incurred through the effective date of termination. 6. The Redeveloper must remediate the contaminated soils on the Redevelopment Property in compliance with MPCA requirements. The Redeveloper also agrees to prepare plans and specifications for and construct all street, sanitary and storm sewer improvements; sidewalks; fencing, landscaping; and other related amenities and utility work (known collectively as the “Redeveloper Public Improvements) related to the proposed redevelopment. Meeting of November 10, 2008 (Item No. 3) Page 7 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project 7. Before commencing such construction, the Redeveloper must submit plans and specifications regarding the Redeveloper Public Improvements for approval by the City. Plans related to the soil remediation however do not require approval by the City. All work on the Redeveloper Public Improvements shall be in accordance with the approved construction plans and shall comply with all City requirements regarding such improvements. The parties agree and understand that the City will accept the Improvements in accordance with City procedures. 8. Subject to Unavoidable Delays, market conditions and issuance of all applicable permits by the City, Redeveloper agrees to substantially complete construction of the Redeveloper Public Improvements by December 31, 2010. 9. Redeveloper agrees to undertake the “Minimum Improvements” as shown in the Master Site Plan (Exhibit B). In summary, the Redeveloper agrees to purchase the subject nine properties, remove the current buildings and structures, construct the Redeveloper Public Improvements, and construct a five story, mixed use building consisting of approximately 133 market rate apartments, approximately 16,300 square feet of groundfloor commercial space, as well as necessary underground and surface parking. 10. The Redeveloper agrees to provide sidewalks adjacent the Minimum Improvements along the Excelsior Blvd and France Ave to the satisfaction of the City. 11. The Redeveloper shall construct an outdoor Plaza as depicted in the Site Plan for the use and enjoyment of residents and invitees of the Minimum Improvements and members of the general public. The Plaza shall incorporate amenities to be mutually agreed upon by the City and Redeveloper, and which may include public art, street furnishings or landscaping, and or decorative lighting elements. The parties agree that the City shall be responsible for the cost of any maintenance and repair of the public art. The Redeveloper shall be allowed to perform these same duties if the EDA fails to do so after the appropriate notice and cure opportunity and to be reimbursed its costs and expenses. 12. Subject to Unavoidable Delays and market delays and provided the City has issued a building permit, the Redeveloper agrees to commence construction on the Minimum Improvements by May 1, 2009 and complete construction of the same by December 31, 2010. 13. The Redeveloper is initially responsible for: all costs of the Redeveloper Public Improvements. All Public Improvement Costs that are Redeveloper’s initial responsibility are subject to reimbursement through tax increment financing. 14. In order to offset the extraordinary costs associated with developing the Redevelopment Property, the EDA agrees to take all steps necessary in accordance with State law to establish a new Redevelopment Tax Increment Financing District, and to utilize tax increment from the Redevelopment Property to fund the eligible activities specified in the Contract. Meeting of November 10, 2008 (Item No. 3) Page 8 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project 15. The tax increment from the Redevelopment TIF District will be payable to Redeveloper in the form of one or more “TIF Notes”, which would be structured on the following basis: ¾ Issue total: Up to $1,450,000 ¾ Type: Pay-as-you-go ¾ Term: Up to 13 years ¾ Interest Rate: 6.5% ¾ Admin Fee: 5% ¾ Fiscal Disparities: Paid from within the district Note Provisions: • The Contract would provide for one pay-as-you-go TIF Note in the maximum principal amount of $1,230,000 to reimburse Redeveloper for such eligible costs as: business relocation/reestablishment, demolition, soil remediation, site preparation, utility and street work, underground parking, landscaping related to the Minimum Improvements (the “Public Redevelopment Note”), secured by Available Tax Increment generated by the Minimum Improvements. • Redeveloper has requested additional TIF assistance for environmental costs, in the form of an additional TIF Note (the “Additional Note”) also secured by Available Tax Increment. The Additional Note shall be related to the environmental remediation on the subject property. Redeveloper has not finalized the exact amount of the Additional Note but estimates are that it would not exceed $220,000. • Redeveloper has further requested contractual authority to assign and/or sell the Additional Note to a third party, and has also requested the ability to request tax-exempt TIF revenue notes to refund any outstanding TIF Note. o Redeveloper is responsible for finding purchaser, and EDA is entitled to review and approve underwriting criteria. o EDA’s obligations to reimburse Redeveloper for Environmental Costs are limited to net proceeds of the Additional Notes. o Standard qualifications apply: Redeveloper understands that Available Tax Increment may not be sufficient to pay principal and interest of the Additional Notes, and any costs exceeding net proceeds are the sole responsibility of Redeveloper. o Redeveloper may request tax-exempt take-out of TIF Notes (the “Refunding Notes”) secured by Available Tax Increment, subordinate to any outstanding TIF Notes. o EDA is not obligated to issue the Refunding Notes, and will base its decision on projections of TIF revenue for the duration of the TIF District, approval of the underwriter for the Refunding Notes, and various market, legal, and timing constraints. Meeting of November 10, 2008 (Item No. 3) Page 9 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project o If the net proceeds of the Refunding Notes are projected to be insufficient to prepay the existing TIF Notes in full, the Redeveloper may (i) release the EDA from its obligations with respect to the unpaid principal and interest on the TIF Notes; (ii) pay the EDA an amount sufficient to prepay the difference between the Refunding Notes and the TIF Notes; or (iii) waive its right to request issuance of the Refunding Notes. 16. Lookback Provisions: • Redeveloper has requested “earliest of” language: lookback calculation to be performed on the earliest of (i) the date the Minimum Improvements reach 95% lease-up; (ii) the date of any Transfer in whole or in part of the Minimum Improvements; or (iii) three years after the date of issuance of the Certificate of Completion for the Minimum Improvements. • The parties are further negotiating the remainder of the lookback language. 17. Both parties agree that any assistance provided to the Redeveloper under this Agreement is not a “business subsidy” under Minnesota Statutes, Section 116J.993, subd. 3 because the assistance is for redevelopment. 18. Redeveloper shall undertake all work related to the Redeveloper Public Improvements and the Minimum Improvements in compliance with all applicable federal and state laws, including without limitation all applicable state and federal Occupational Safety and Health Act regulations. Any subcontractors retained by Redeveloper shall be subject to the same requirements. 19. If Redeveloper requires mortgage financing for the development of the Project, the EDA agrees to subordinate its rights under the Agreement to the Holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a mutually-approved subordination agreement. 20. Redeveloper agrees not to transfer the agreement or the redevelopment property (except to an affiliate) prior to receiving a Certificate of Occupancy for the building without the prior written consent of the EDA. 21. Redeveloper agrees that the EDA and the City will not be held liable for any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Redevelopment Property or the Minimum Improvements. 22. Developer agrees that the project will be professionally managed by a property management company with substantial experience in operating mixed use developments and is subject to EDA approval. Meeting of November 10, 2008 (Item No. 3) Page 10 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project 23. The parties agree that the Redeveloper shall be responsible for all maintenance (including snow and ice removal) and repair costs associated with the Redeveloper Public Improvements on the Redevelopment Property (“Maintenance Costs”) including: • Private streets, alleys, driveways, service drives, surface parking stalls and parking lots. • Boulevards (excluding public street right of ways) • Parking structures • Sidewalks • Public plaza • Landscaping • Stormwater ponds Redeveloper agrees to keep the above Redeveloper Public Improvements in good condition and is resposibile for all repairs of same. Redeveloper shall not be responsible for the maitenance and repair of those public improvements typically maintained by the city’s Special Sercvice District 24. Upon the written request of the EDA or City, the Redeveloper agrees to file any petition to enter into the special service district for the continued maintenance of the streetscaping along Excelsior Boulevard right of way. 25. By no later than December 31, 2010, the Redeveloper shall submit to the EDA for review and approval a plan for maintenance and operation of all pedestrian and landscaping improvements located within the Redevelopment Property other than those within the Excelsior Boulevard right of way (the “Maintenance Plan”). The Maintenance Plan must address, at a minimum: snow removal from pedestrian connections and sidewalks; maintenance and replacement of landscaping, irrigation and other streetscaping; snow removal and maintenance of any surface parking and parking lots; and maintenance of the Plaza, but excluding maintenance covered by the City’s Special Service District No. 2, a description of how the Maintenance costs will be assessed to tenants; and enforcement mechanisms. If the Redeveloper fails to perform the Maintenance in accordance with the Maintenance Plan, the EDA, at its option and following thirty (30) days written notice to the Redeveloper, may enter the Redevelopment property and perform the Maintenance. The Redeveloper agrees to permit the City to specially assess any costs of the Maintenance proportionately against the Minimum Improvements. 26. Upon satisfactory completion of the Minimum Improvements, the EDA will provide the Redeveloper with a Certificate of Completion in recordable form, which shall specifically provide that the Redeveloper’s obligation to construct the Minimum Improvements pursuant to the Redevelopment Agreement is deemed satisfied. Meeting of November 10, 2008 (Item No. 3) Page 11 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project 27. Redeveloper agrees not to transfer the Redevelopment Agreement or the Redevelopment Property (except to an affiliate) prior to receiving a Certificate of Completion without the prior written consent of the EDA, except for construction mortgage financing and/or permanent financing. The EDA's consent shall not be unreasonably withheld, conditioned or delayed. The EDA agrees to provide its consent or refusal to consent to Redeveloper in writing within 10 days after a request for such consent from Redeveloper. 28. The Redeveloper agrees to submit to the EDA written reports so as to allow the EDA to remain in compliance with reporting requirements under state statutes. The EDA will provide information to the Redeveloper regarding the required forms. 29. The Redeveloper agrees that no portion of the Redevelopment Property will be used for a sexually-oriented business as defined in City Code, Section 14:5-3(28), a pawnshop, a check- cashing business, payday loan agency, a tattoo business; or a gun business, and that such restrictions may be placed in the Redevelopment Deed. 30. The Redeveloper agrees not to discriminate upon the basis of race, color, creed, sex or national origin in the construction and maintenance of the Minimum Improvements and Public Improvements as well as lease, rental, use or occupancy of the Redevelopment Property or any improvements erected thereon. 31. Redeveloper acknowledges that the City/EDA makes no representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements. 32. Redeveloper, City and EDA agree to indemnify, defend and hold harmless each other and their officers, employees, and agents (“Indemnified Parties”) from and against all cost, loss, claim, damage or expense, including reasonable attorney fees, arising out of (i) any injury, property loss or damage whatsoever that results or arises from the undertakings of this Agreement under this Section, except to the extent such injury, loss or damage arises from the negligence of the Indemnified Parties; and (ii) any work performed on or for the benefit of the Redevelopment Property by a person or entity not a party to this Agreement, including without limitation all costs related to defense against or removal of any lien or encumbrance, except to the extent such claim arises from a party directly engaged by the Indemnified Parties. Meeting of November 10, 2008 (Item No. 3) Page 12 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project EXHIBIT A REDEVELOPMENT PROPERTY The subject Redevelopment Property includes all or portions of the following nine (9) properties and as reflected in the Master Site Plan. PID: 0602824410002 City Address:* 3920 EXCELSIOR BLVD PID: 0602824410069 City Address:* 3912 EXCELSIOR BLVD PID: 0602824410053 City Address:* 3900 EXCELSIOR BLVD PID: 0602824410052 City Address:* 3416 FRANCE AVE S PID: 0602824410051 City Address:* 3412 FRANCE AVE S PID: 0602824410050 City Address:* 3408 FRANCE AVE S PID: 0602824410056 City Address:* 3417 GLENHURST AVE PID: 0602824410057 City Address:* 3413 GLENHURST AVE PID: 0602824410058 City Address:* 3409 GLENHURST AVE Meeting of November 10, 2008 (Item No. 3) Page 13 Subject: Business terms for Redevelopment Contract with Bader Development for the Ellipse on Excelsior Project EXHIBIT B Master Site Plan Meeting Date: November 10, 2008 Agenda Item #: 4 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Comprehensive Plan Update. RECOMMENDED ACTION: No action is needed; this item is an overview of the community input and general schedule for adopting the Comp Plan. POLICY CONSIDERATION: How does the City Council feel about the proposed timing for sending our draft Comprehensive Plan out for review to surrounding communities and other jurisdictions and conducting a formal community input process from January to May, 2009. BACKGROUND: A Comprehensive Plan is a long range plan that carries out the City’s Vision for the future. It sets goals, policies and direction in a comprehensive manner and provides a framework for achieving the city’s goals. It provides a touchstone to guide daily, weekly and monthly decisions that are consistent with the chosen direction, goals and policies of the community as a whole. It ensures consistent direction, coordinated plans, and prevents future conflicts. Communities in the Twin Cities area are required by state law to update their Comprehensive Plans at least every 10 years. The official date for submittal is December 31, 2008, however the Metropolitan Council has granted us an extension until May 29, 2009. COMPREHENSIVE PLAN PROCESS We are nearing the completion of the draft Comprehensive Plan. The technical work needed to update the plan is nearly done; Barr Engineering is completing the Surface Water Management Plan, SRF Consulting is completing the Transportation Plan, SEH completed the Inflow & Infiltration Study and the other components are being completed internally. The Planning Commission has reviewed and discussed several components of the plan including utilities, parks and open space, transportation, and land use. They will continue to be the primary group responsible for the Comprehensive Plan, and will continue to be involved in the process. Some sections will identify questions and issues that will require more in-depth study. For example, our Transportation Plan will identify specific areas where further study will be needed. Meeting of November 10, 2008 (Item No. 4) Page 2 Subject: Comprehensive Plan Update The next step is to bring the draft plan to the community for input. This entails both meeting with our own residents, businesses and stakeholder groups; and sharing the plan with our neighboring cities and other key regional agencies like the watershed districts and the County. Over the next 6 months staff will be meeting with neighborhoods and other stakeholders in St. Louis Park to discuss the plan. We also will be seeking input and comments from outside agencies and surrounding communities. The input garnered from this process will be incorporated in the plan and used further before is brought to the City Council for approval and submittal to the Metropolitan Council at the end of May, 2009. In upcoming weeks staff will present the draft plan to the City Council at a study session in anticipation of the City Council authorizing beginning the public review process. The target is to ask the City Council for authorization to start the public review process in December, 2008. At the Study Session staff will provide initial plans for getting community input on the draft Comprehensive Plan. FINANCIAL OR BUDGET CONSIDERATION: None at this time. VISION CONSIDERATION: The recent community visioning process has set the stage for the direction of our Comprehensive Plan. All of the Vision elements will be incorporated throughout the plan. In this way, we build each Vision element into our goals, policies and action plans to be implemented on a daily and weekly basis. Attachments: Comprehensive Plan Outline Prepared by: Meg J. McMonigal, Planning and Zoning Supervisor Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager Comprehensive Plan Introduction Vision St. Louis Park Who We Are A. Local History B. Population, Households and Employment 1. Data 2. Trends C. 2030 Projections Why We are a Livable Community A. Land Uses B. Redevelopment Opportunities C. Public Safety D. Housing E. Plan By Neighborhood Connecting Our Community A. Highways and Streets B. Transit C. Sidewalks and Trails D. Aviation Where We Connect A. Parks and Open Space B. Schools and Other Gathering Places C. Arts and Culture Environmental Stewardship A. Environment 1. Natural Environment 2. Best Management Practices 3. Public Health B. Utilities 1. Water 2. Sanitary Sewer 3. Stormwater 4. Other Utilities How We Govern A. City Organization B. Public Facilities C. Communications D. Budgeting and Capital Improvements Planning APPENDICES: Water Supply Plan Surface Water Management Plan I & I Study Sidewalk and Trails Plan Vision Meeting Date: November 10, 2008 Agenda Item: 5 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: 2009 Budget and Levy. RECOMMENDED ACTION: No formal action is requested or required at this time. This study session discussion is a follow-up to the budget discussion held by the City Council on October 13. Based on the information provided in this report, staff is requesting more specific direction from the City Council on a final levy amount that it would be comfortable in considering. Based on this direction, staff will prepare more specific budget recommendations for the November 24 study session. POLICY CONSIDERATION: • The recommendations provided in this report provide for a balanced budget at a 5.8% levy. Is the Council comfortable with this levy adjustment? • Does the Council want staff to recommend specific changes to the budget that will allow for a lower levy amount? If so, what levy target does the Council want staff to work towards? BACKGROUND: In August, the Staff presented to the City Council a budget that was essentially intended to maintain existing service levels. The City Council adopted a preliminary budget and levy in September that reflected this policy. On October 13, the City Council discussed the budget and property tax levy in light of an assumed drop in building permit revenues of $547,000. The discussion assumed a 6.27% property tax levy increase as our maximum levy for 2009. In order to balance this drop in revenues, the use of $381,000 of fund balance was discussed and generally agreed to. In addition, other budget reductions were recommended. Since the October 13 meeting a couple of key assumptions have changed and are discussed below. WHAT HAS CHANGED SINCE OCTOBER 13? Revised Levy Limit: Since the October 13 meeting, we received a revised levy limit determination from the Department of Revenue of 5.8%. Our actual levy limit is $97,026 lower than originally estimated by staff when we were at 6.27%. Permit Revenues: Based on a more thorough analysis, staff has revised the amount of building permit revenues projected for 2009. The budgeted revenue for permits for the last seven years (2001-2007) averaged about $1,558,000. Our actual revenues during that same timeframe exceeded the budget by almost $200,000 per year, and totaled an average of $1,757,000. Meeting of November 10, 2008 (Item No. 5) Page 2 Subject: 2009 Budget and Levy With this analysis and a conservative review of upcoming developments for 2009, we predict a moderately higher level of permit revenues, at $1,500,000, than we talked about on October 13. This reflects an increase of $260,000. The graph below illustrates the budgeted and actual revenues history over the last seven years. 2001 2002 2003 2004 2005 2006 2007 *2008 2009 Budget $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Year $ Permit Revenues Budget Actual Fund Balance: Because we have such strong permit revenues in 2008, we anticipate a significant increase in the balance of the General Fund at the end of this year. This will allow the use of some reserves to help balance the 2009 budget. In addition, if permit revenues come in lower than the $1,500,000 level we used to prepare the budget document, our fund balance will remain comfortably above 40%. Additional Budget Adjustments: At the October 13th meeting, the City Council indicated that it was willing to consider using the maximum 6.27% levy adjustment and also asked staff to provide options to the Council which would allow for a lower levy amount. Although are levy limit is now technically at 5.8%, for consistency purposes staff has used the 6.27% levy figure as the starting point and from there has provided scenarios of the kinds of cuts/methods necessary to achieve a .5%, 1% or 2% reduction to that levy amount (e.g. to 5.8%, 5.27% or 4.27%). In order to keep the Councils discussion at a “big bowl level”, rather than proposing detailed line item reductions at this time, staff is providing examples of the of the types of changes which would have to occur to our budget to achieve a specific levy reduction. A .5% levy reduction amounts to approximately $100,000 in cuts and or new revenues. A 1% reduction amounts to $200,000. And finally, a 2% reduction amounts to $400,000. For the meeting on Monday night staff will provide examples of the property tax impacts for homeowners at various home values based on these three levy assumptions. Meeting of November 10, 2008 (Item No. 5) Page 3 Subject: 2009 Budget and Levy Scenario 1 - .5% levy reduction from 6.27% to 5.8% (approximately $100,000) As noted earlier, the City’s true levy limit is at 5.8% which in and of itself requires a .5% downward levy adjustment. This goal has been met based on the cuts/new revenues identified at the October 13 meeting (attached) as well as the use of $218,480 in fund balance and a revised upward estimate of permit revenues of $260,000. Scenario 2 – 1% levy adjustment from 6.27 to 5.27% (approximately $200,000) Staff has taken the reduction to 5.8% as a given in order to meet our levy limit. This scenario assumes a further $100,000 reduction in the levy in addition to the $100,000 (actually $97,026) cut in Scenario 1. In order to achieve this reduction staff has provided the following examples of the kinds of categories of additional adjustments that could be made. • Shifts in funding sources. Examples include: ¾ State lobbying costs to EDA Development Fund ($10,000) ¾ Increase transfers from Enterprise Funds to General Fund (up to $100,688) ¾ Printing and publishing of the Comp Plan ($2,500) • Service Changes – Examples include: ¾ Eliminate Sidewalk Snow Removal Enforcement ($15,000) • Reduce budgeted assistance to School District for Police Liaison Officer (50% or $43,000) • Continue to charge School District for election costs ($14,000) • Miscellaneous reductions e.g. training, schools, mileage, supplies, etc ($14,400) If the Council intentions were to come in at or near a 5.27 % adjustment, staff will provide more specific recommendations for the November 24 meeting Scenario 3 – 2% levy adjustment from 6.27% to 4.27% (approximately $400,000) This scenario assumes a further $200,000 reduction in the levy in addition to the $97,026 cut in Scenario 1 and the $100,000 cut in Scenario 2. This type of reduction will begin to require noticeable changes in service levels, staffing, and programs. In order to achieve this reduction staff has provided the following examples of the kinds of categories of adjustments that would need to be made. • Reduce remaining assistance to School District for Police Liaison Officer ($43,000) Meeting of November 10, 2008 (Item No. 5) Page 4 Subject: 2009 Budget and Levy • Modify or reduce communication functions. Examples include: ¾ Eliminate City School Calendar ($7,500) ¾ Reduce number of Park Perspective issues from 6 to 3 times per year ($50,000), or - ¾ Reduce distribution of Park Perspective from 25,000 mailings per newsletter to 5,000 and post electronically on web site or provide electronically via a subscription service ($35,000) or ¾ Provide the Park Perspective in an electronic format only ($55,000) • Reduce Services in Parks and Recreation. Examples include: ¾ Reduce Warming House Hours ¾ Shorten Aquatic Park Season by three days ($6,000) ¾ Eliminate one Aquatic Park weekend manager ($6,000) ¾ Eliminate Friday events from the summer playground program ($4,000) • Other Service Changes – Examples include: ¾ Change rental inspection requirements from 2 to 3 years ($32,000) ¾ Eliminate seasonal custodial position ($14,000) ¾ Cut front counter/secretary in Inspections (1/2 time - $32,000) ¾ Cut overtime in Fire, Police and Public Works ($10,000) ¾ Cut random sidewalk and curb repair ($15,000) • Undertake further shifts in expenses from the General Fund to capital funds or enterprise funds. • Undertake additional cuts to training, schools, etc. for staff. • Consider other staffing reductions. If the Councils desire is to come in at or near a 4.27 % levy adjustment, staff will provide more specific recommendations for the November 24 meeting. Some Other Budget Thoughts Staff is very sensitive to the economic climate we are in right now and the need to be cognizant of trying to keep our tax levy and related property taxes as low as possible. Having said that, staff feels it would be remiss in not reminding the Council of the fact that levy limits will be in effect not only for 2009 but also for 2010 and 2011. Since our levy limit cap increase for 2010 will be calculated based on our levy for 2009, the lower we keep our levy in 2009 the lower our total allowable levy will be in 2010. Sadly, this thinking is one consequence of the State’s imposition of levy cap’s and has proven in the past to affect how cities state wide set there levies. In other words, cities feel compelled to levy to the cap regardless of whether they actually may need to in order to protect their flexibility in future years to deal with real or perhaps unforeseen budget needs. Meeting of November 10, 2008 (Item No. 5) Page 5 Subject: 2009 Budget and Levy Given that 2010 could be a difficult budget year for us, the Council may want to keep this in mind as well. FINANCIAL OR BUDGET CONSIDERATION: The decisions we make over the next month will shape the course of the City’s levy for the next several years. We must carefully consider both the immediate and long-term effects on our ability to provide services to our constituents. VISION CONSIDERATION: Vision, including strategic directions, was used in preparing the budget documents. Attachment: October 13 Recommended Budget Adjustments General Fund Summary Budget Narratives Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager City of St. Louis Park 2009 Budget Changes from Preliminary Levy Adoption 10/13/2008 One New Department Line Item Expense Description Cut Shift Time Revenue Administration 6550 Lobbying Cut state lobbying 5,000 6630 Other Contractual Employee development 5,000 7050 Printing Vision communication 5,000 7601 Memberships Based on previous cost 2,500 7603 Conferences Based on Council participation 10,000 Employer Contribution - Health Ins 144,000 Subtotal 166,500 5,000 - - Human Resources 6410 Arbitration Cut arbitration usage 2,500 6460 Advertising Reduce StarTribune ads 2,000 Subtotal 4,500 - - - IR - Tech Services Hamilton House connection 2,700 Legal Intellectual Property Attorney 5,000 Training Reduce IT training 3,000 Subtotal 5,700 - 5,000 - IR - Supp Svcs Postage Reduce mailing cost 10,000 Revenue GraffitiNet revenue 3,000 Subtotal 10,000 - - 3,000 Facilties Maint 7503 Rental Buildings Don't store WiFi Equipment 20,000 20,000 6212 General Supplies 2,000 6222 Building Supplies 3,500 6410 General Professional Complete HVAC Study in 2008 10,000 6831 Telephone 2,000 Subtotal 27,500 30,000 - - Police Contributions Teens Alone 2,000 Graffiti Eliminate Supplies 1,500 Fingerprint software 3,680 Capital West End Security 5,700 Subtotal 3,500 - 9,380 - Fire CERT program 20,000 Paging Study 10,000 Uniform Draw System 4,100 Radios and radio batteries 6,000 Subtotal 30,100 10,000 - - Inspections From BH Memo Permit Revenue Reduction (547,000) From BH Memo Temp Inspector (30,000) 6410 General Professional 2,000 6630 Other Contractual 1,000 7050 Printing 1,500 4202 Electrical 3,000 4203 Mechanical 2,000 4210 Plumbing 2,000 4208 Point of Sale 2,000 4106 Tobacco 300 4111 Food and Beverage 3,000 4125 Public Sanitary 800 4121 Massage 300 4123 Lodging 400 4120 Vehicle Parking 200 4131 Tree Maintenance 1,000 4115 Solid Waste 300 4107 Temp Food Service 200 Subtotal 4,500 - - 15,500 PW - Administration 6410 General Professional Reduce Consultant Expenses 10,000 Subtotal 10,000 - - - PW - Engineering 6630 Other Contractual Reduce non-project consultant cost 15,000 Subtotal 15,000 - - - PW - Operations 7301 Electric Service Eliminate signal at Zarthan/Lake 2,000 6630 Other Contractual reduce sidewalk and curb repair 5,000 6012 Overtime Reduce OT expense 5,000 Subtotal 12,000 - - - Organized Rec Eliminate Saturday Concert Series 10,000 Park-ticipation Bus 30,000 City-Wide Open House 10,000 Sell Hot Cocoa at rinks 2,000 Subtotal 40,000 10,000 - 2,000 Park Maintenance STS crews mow entrance signs 3,000 Subtotal 3,000 - - - Environmental Reduce elm tree injection subsidy 20,000 Increase admin surcharge for blvd trees 5,000 Subtotal 20,000 - - 5,000 Total Levy Impact 129,820 (224,700) 55,000 14,380 25,500 Original Budget Deficit 251,634 Total Fund Balance Used 381,454 Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 6 City of St. Louis Park General Fund and Park & Rec r November 10, 2008 2004 2007 2008 2009 Actual Actual Adopted as of 10/29/08 % change AVAILABLE RESOURCES General Fund Revenues: General Property Taxes 14,327,844$ 12,332,531$ 14,107,179$ 14,967,775$ 6.1% Licenses and Permits 2,569,869 2,940,137 2,712,715 2,515,000 -7.3% Intergovernmental 1,713,489 2,283,249 1,709,365 1,647,214 -3.6% Charges for Services 2,850,801 1,044,320 1,084,975 1,201,900 10.8% Fines, Forfeits, and Penalties 251,256 277,005 311,000 312,000 0.3% Investment Earnings 108,006 526,346 325,000 350,000 7.7% Miscellaneous Revenue 786,891 145,282 102,000 102,000 0.0% Transfers In 2,554,666 2,659,532 2,555,694 2,628,910 2.9% Use of Fund Balance - Total General Fund Revenues 25,162,822$ 22,208,402$ 22,907,928$ 23,724,799$ 3.6% Appropriations 24,021,606$ 21,254,682$ 22,907,928$ 23,943,279$ 4.5% Net Revenue Over (Under) Appropriations 1,141,216 953,720$ -$ (218,480)$ Park & Recreation Revenues: General Property Taxes 14,327,844$ 3,541,220$ 3,750,197$ 4,075,618$ 8.7% Licenses and Permits 2,569,869 6,300 - - 0.0% Intergovernmental 1,713,489 55,841 56,402 55,702 -1.2% Charges for Services 2,850,801 1,304,166 1,058,170 1,141,598 7.9% Fines, Forfeits, and Penalties 251,256 - - - 0.0% Investment Earnings 108,006 - 1,600 - -100.0% Miscellaneous Revenue 786,891 1,105,099 834,161 895,000 7.3% Transfers In 2,554,666 198,791 75,000 - -100.0% Total Park & Recreation Revenues 25,162,822$ 6,211,417$ 5,775,530$ 6,167,918$ 6.8% Appropriations -$ 5,774,973$ 5,775,530$ 6,167,918$ 6.8% Net Revenue Over (Under) Appropriations 25,162,822$ 436,444$ -$ 0$ Assumes +$260,000 in permit revenues Total Budget Gap (218,480)$ Summary of Actual & Budgeted Revenues Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 7 City of St. Louis Park General Fund and Park & Rec October 13, 2008 Department, Division 2007 2008 CM and Activity Actual Adopted Proposed % change General Government: Administration/Legislative 936,706$ 1,034,327$ 1,002,335$ -3.1% Communications & Marketing 192,117 287,782 299,225 4.0% Community Outreach 111,755 83,983 86,055 2.5% Human Resources 581,874 629,674 644,550 2.4% Information Resources 1,545,110 1,460,839 1,483,770 1.6% Finance 1,100,538 1,123,213 1,168,480 4.0% Community Development 1,027,281 1,080,897 1,110,750 2.8% Facilities Maintenance 1,135,194 1,187,926 1,203,942 1.3% Total General Government 6,630,575 6,888,641 6,999,107 1.6% Public Safety: Police 6,291,045 6,927,117 7,307,522 5.5% Fire Protection 2,762,736 3,029,118 3,121,673 3.1% Inspectional Services 1,743,479 1,852,874 2,053,927 10.9% Total Public Safety 10,797,260 11,809,109 12,483,122 5.7% Public Works: Public Works Administration 797,114 832,583 855,450 2.7% Engineering 816,501 785,182 924,300 17.7% Operations 2,213,232 2,412,413 2,501,300 3.7% Total Public Works 3,826,847 4,030,178 4,281,050 6.2% Park & Recreation: Organized Recreation 1,241,759 1,250,699 1,292,110 3.3% Recreation Center 1,314,548 1,358,383 1,455,167 7.1% Park Maintenance 1,396,902 1,377,518 1,460,835 6.0% Westwood 455,855 466,678 492,036 5.4% Environment 531,172 288,982 286,993 -0.7% Vehicle Maintenance 834,737 1,033,270 1,180,777 14.3% Total Park & Recreation 5,774,973 5,775,530 6,167,918 6.8% Non-Departmental: General Services/Contingency - 180,000 180,000 0.0% City Contribution Increase Estimate Total Non-Departmental - 180,000 180,000 0.0% Total General & Park Funds 27,029,655$ 28,683,458$ 30,111,197$ 5.0% Total Increase in Expenditures 1,427,739$ Summary of Actual & Budgeted Expenditures By Department and Division Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 8 Service Overview Administrative Services: Administrative Staffing Administrative Services department has 2 main divisions - Administrative (included in this budget page) and Human Resources (in separate budget page). The department provides support to the overall administration of the City’s affairs. The department provides service to Mayor, Council, City Departments, Community Partners, and the Public. We provide service and assist in other activities such as: working with ordinances, resolutions, agendas, minutes, contracts, bids, legal notices, city clerk activities, charter, advisory boards and commissions, legal, coordination with other government entities, and assisting the public. Administrative Services also assists with special projects and programs such as Vision, Arts Grant Administration, Transportation including rail, Collaborative work with other agencies, Elections, Legal and Legislative. Several years ago this budget was revised to streamline operations and provide better service delivery. The budgets of legislative and administration were combined, along with moving communications to Information Resources. Administrative Services, in collaboration with other city departments, is leading several internal service initiatives, including environmental services review and setting initiatives, property foreclosures workgroup, and bi-annual city- wide residential surveys. Staff will continue to provide excellent services and reach out to members of our staff, community, boards, commissions, and public. Positions included in budget are: City Manager, Management Assistant, City Clerk, two Office Assistants, and Election Judges (hired as needed for election activities). This budget also includes Mayor, Council, and recording secretaries for Council, Boards and Commissions meetings. Deputy City Manager/ HR Director Human Resources Coordinator Management Assistant Organizational Development Coordinator (.75) HR Office Assistant Payroll Clerk City Clerk Office Assistants (2) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 9 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 440,801$ 495,262$ 511,250$ 531,500$ Supplies 3,524 2,614 4,350 3,700 Services & Other Charges 353,879 438,830 518,727 467,135 Other Expenses - - - - Total Expenditures 798,204$ 936,706$ 1,034,327$ 1,002,335$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Administrative Services: Administrative Staff was able to keep overall costs stable for the 2009 Administrative Services budget through careful review and planning. Our election costs are lower since we had to budget for a presidential election in 2008. Staff also anticipates increased license revenues mid-year due to the West End development and the estimated 10 new restaurants scheduled to open in 2009 and this is included in the revenue projection. Personal Services 53.03% Services 46.60% Supplies 0.37% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 10 Information Resources: Communications & Marketing Service Overview Staffing Achieving Vision St. Louis Park’s goals—informed citizens, innovative partnerships, positive public participation, and community connections—require the City to provide proactive, targeted and timely information and support services to citizens. Communications/Marketing disseminates information to enable residents to take full advantage of City services, promote compliance with ordinances, foster understanding of issues facing the community, and promote the desirability of living and doing business in St. Louis Park. To accomplish this mission, this division publishes newsletters and the Community Handbook, posts a web site, distributes new resident packets, issues news releases, and creates brochures and reports. Communications and Marketing provides service and support to all city departments regarding both internal and external messaging needs. In 2006 the city reviewed its communication program methods and developed a communications plan. It was determined in order to continue to provide high quality communications services, all communications functions should be grouped together. The result was the Communications Coordinator position moved from Administrative Services to Information Resources to work directly and converge with Cable and Web services. Also, in order to meet communication demands, consultants are used to assist with production of newsletters, media releases, writing, design, graphics, and general communication needs. In 2008, a communications intern was added at 20 hours a week to assist the Web Developer, Communications Coordinator and Cable TV staff. Our objectives are: • to continue to provide high quality communications services to our customers • to build capacity into the communications function to handle the increased communications needs as reflected in the communications plan, including new methods and options to distribute information (i.e.: electronic newsletters/subscriptions) • to increase support to all city departments in communications and marketing • to coordinate all of our communications activities for delivering information, including through Cable and Web services, to both recognize and consciously exploit the convergence of technology and communications • to begin the study on implementation of branding/total package program for marketing within our city Communications is staffed by a full-time communications coordinator, one of two division heads, in Information Resources. The division also includes a web developer and a combination of 6 part-time and full-time cable tv staff and one intern. The cable tv staff and related expenses are budgeted in the Cable TV fund. Technology and Support Services Director IT Manager Senior Support Services Rep Support Services Representative Support Services Receptionist Communications Coordinator Community TV Coordinator Web Developer Program Manager Civic TV Coordinator IT Technician GIS Technician IT Temp (Part Time) Broadband Coordinator Program Producer Program Producer (Part Time) Program Producer (Part Time) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 11 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 32,328$ 70,158$ 173,932$ 184,980$ Supplies 598 890 - - Services & Other Charges 150,615 121,069 113,850 114,245 Total Expenditures 183,541$ 192,117$ 287,782$ 299,225$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Information Resources: Communications & Marketing Changes to the 2009 budget are limited to a small decrease in the cost of printing and publishing related to an favorable vendor negotiations. Also, there are no special publications to be produced in 2009 (i.e. Community Handbook). Funds for legal services related to exploring the city's intellectual property rights will be funded outside of the General Fund. Services 38.18%Personal Services 61.82% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 12 Police: Community Outreach Service Overview Staffing Community Outreach promotes diversity awareness, supports neighborhood groups, and fosters volunteerism, community involvement, and pride. It accomplishes this mission by educating residents at community meetings and events, assisting the Human Rights Commission, the Vision Outcomes committee, and neighborhood associations, by providing support to nonprofit groups and volunteers, and making connections with other City departments. In 2007, Community Outreach moved from the Administrative Services Department to the Police Department. Community Outreach continues to strive to provide excellent service to reach out to members of our community and work with other departments in support of our vision of being a connected and engaged community. Community Outreach is staffed by a full-time Community Liaison person. Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 13 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 51,882$ 70,166$ 73,127$ 76,500$ Supplies 176 233 1,100 850 Services & Other Charges 39,163 41,356 9,756 8,705 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 91,221$ 111,755$ 83,983$ 86,055$ Summary of Actual & Budgeted Expenditures 2009 Budgeted Expenditures Budget Highlights Police: Community Outreach Supplies 0.99% Services 10.12% Personal Services 88.90% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Expenses are relatively low for Community Outreach, yet the impact of Community Outreach efforts is high. This budget covers the Community Connection Specialist's salary and expenditures, mediation contract services, and expenses for the Human Rights Commission and new neighborhood organizing. Neighborhood grant funds, which are administered by Community Outreach, are included in the Housing Rehabilitation Fund budget. The expense for volunteer coordination with the St. Louis Park Schools in the amount of $35,000 has been transferred out of the Community Outreach budget and into the Human Resources budget for 2008. Community Outreach is entirely funded by a transfer from the Housing Rehabilitation fund. Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 14 Administrative Services: Human Resources Service Overview Staffing The Human Resources mission is to provide quality services to current and potential employees. We provide services in the areas of: - Organizational development, employee development, training, facilitation process, and coaching - Recruitment and selection - Payroll, compensation programs, independent contractors, temporary/seasonal staffing - Workers compensation and various leave programs - Benefit administration with VEBA and HCSP programs - Labor relations, negotiations, arbitration and assistance in employee issues - Employee relations, recognition, communication, policy and program development and implementation - Handling employment mandates including FMLA, Pay Equity, DOT testing, Vet's Preference, etc. We have the unique opportunity to work closely with all employees. Our workforce includes non-organized as well as 5 organized employee groups, paid-on-call firefighters and temporary and seasonal employees. Our HR staff will continue to strive to provide excellent service to help employees learn and grow to meet the service demands of our customers in areas listed above. As part of Administrative Services Department, we will continue to work with a larger group to support each other with service delivery. The Human Resources team consists of the following staff members: Deputy City Manager/Human Resources Director, part-time Organizational Development Coordinator, HR Coordinator, Payroll Clerk, and Office Assistant. Deputy City Manager / Human Resource Director Human Resources Coordinator Organizational Development Coordinator (.75) Management Assistant Human Resources Office Assistant Payroll Clerk Office Assistant City Clerk Office Assistant Deputy City Manager / Human Resource Director Human Resources Coordinator Organizational Development Coordinator (.75) Management Assistant Human Resources Office Assistant Payroll Clerk Office Assistant City Clerk Office Assistant Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 15 2006 2007 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 426,982$ 447,641$ 459,624$ 481,000$ Supplies 1,517 1,893 2,000 2,000 Services & Other Charges 129,363 132,340 168,050 161,550 Other Expenses - - - - Total Expenditures 557,862$ 581,874$ 629,674$ 644,550$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Administrative Services: Human Resources 2008 Administrative Services department has 2 main divisions - Human Resources and Administrative (in separate b udget page). Since 2004, Human Resources, through Organizational Development have been offering our training programs to professionals from other cities, in addition to our own employees. As a result of this initiative, we are able to report revenues of approximately $10,000 in 2004, and $15,000 in 2005 and 2006. In 2007, a new, award winning program for emerging leaders was developed and implemented called University of Park. This program brought revenue from other departments and cities in order to offset the costs of visiting trainers and speakers. The revenue for all training in 2007 topped $26,000, which includes revenue received for programs delivered in 2008. We continue to research and review training and development needs and are excited to continue offering this training to others in 2009. In 2009 we would like to implement on line application process with the assistance of IR. We are also working toward implementation of a employee self service program through payroll. Staff was able to keep overall costs stable for the 2009 Human Resources budget through careful review and planning. Supplies .31% Services 25.06%Personal Services 74.63% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 16 Information Resources: Information Technologies Service Overview Staffing In 2007, the Department of Information Resources (IR) was created by combining what were the Department of Technology and Support Services (TSS) and Division of Communications and Marketing, previously part of the Department of Administrative Services. At this time, the Division of Information Technologies (IT) was created within IR. IT focuses on installation and maintenance of various technologies, especially digital technology. This support allows departments to focus on improved efficiency and effectiveness of City service delivery, the re-engineering of workflows to meet evolving business needs, and the support of decision-making processes throughout the City. This is accomplished by departments keeping a pulse on community needs and helping to address them through communicating with service users and citizens, the allocation of scarce resources, and fostering both standard and innovative uses of information and technology. To these ends, the primary areas of IT activity include mission-critical computer applications in tandem with LOGIS (Local Government Information Systems), a 30-agency computing consortium formed through a joint powers agreement in 1972. IT’s role is to work in cooperation with LOGIS staff in the successful use, troubleshooting, and replacement of mission-critical applications, as well as the wide and local area networks that form a major component of the information infrastructure. IT also collaborates with many third-party vendors in support of applications used by various departments. PC, printer, mobile computing, and local area network technical support and maintenance is a major function served by IT. The Division of Information Technologies (IT) includes an IR division head, the IT Manager. In addition, there is one IT Technician and one GIS Technician. Temporary employees are utilized during peak work loads. Chief Information Officer IT Manager Senior Support Services Rep Support Services Representative Support Services Receptionist Communications Coordinator Community TV Coordinator Web Developer Program Manager Civic TV Coordinator IT Technician GIS Technician IT Temp (Part Time) Broadband Coordinator Program Producer Program Producer (Part Time) Program Producer (Part Time) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 17 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 524,275$ 606,923$ 386,778$ 401,000$ Supplies 31,325 50,172 - - Services & Other Charges 837,059 888,015 709,660 709,684 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 1,392,659$ 1,545,110$ 1,096,438$ 1,110,684$ Summary of Actual & Budgeted Expenditures 2009 Budgeted Expenditures Budget Highlights Staffing Technology and Support Services (continued) Summary of Actual & Budgeted Expenditures Information Resources: Information Technologies IT provides staffing for citywide network and computer-related tasks. Some departments provide staffing for their specific information management needs. Between 1983 and 2006, there was one dedicated in-house full-time PC technician -- the Network Administrator. Temporary staffing services were used on occasion as the budget allowed. In 2006, an IT Technician was added who assists with many of the incoming IT problem requests and projects. The web management function was also transferred from Administrative Services to IT in 2005. The Web Coordinator / Applications Developer supports e-government, City web site content management and development, and intranet development. This position was moved to the Division of Communications and Marketing when it became part of IR in 2007. A GIS Technician was added in 2007 to augment GIS support provided through LOGIS. The unified backup tape library system, storage area network, and e-mail server cluster added in 2008 to enhance system capacity, reliability, availability, and recovery is already in need of expansion in 2009. This becomes ever more critical given growing reliance on electronic storage by employees and, increasingly, the public. The budget will reflect business as usual with increased focus on green efforts in accordance with the Vision recommendations. Some key things in the budge include more duplex printers implemented, remote technologies available for conference rooms and city building wireless access to accommodate the growing use of electronic agendas, and an increase in the number of wireless cards for department laptops out in the community. Personal Services 36.10% Services 63.90% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 18 Information Resources: Support Services Service Overview Staffing In 2007, the Department of Information Resources (IR) was created by combining what were the Department of Technology and Support Services (TSS) and Division of Communications and Marketing, previously part of the Department of Administrative Services. At this time, the Division of Support Services was created within IR. Support Services is composed of office services and receptionist staff. Primary areas of Support Services activity include City Hall reception, bulk office supplies, management of paper and imaged records, self-service centers, copiers, fax machines, copy-duplicator, laminator, collator, folder, other office support equipment, and related maintenance service contracts. Support Services also handles most large copying services, distribution of daily in-coming, inter-office, and out-going standard and bulk mail, including services to remote City buildings, and printing of some neighborhood newsletters. The Division of Support Services includes a lead Senior Support Services Representative, Support Services Representative, and Receptionist. Chief Information Officer IT Manager Senior Support Services Rep Support Services Representative Support Services Receptionist Communications Coordinator Community TV Coordinator Web Developer Program Manager Civic TV Coordinator IT Technician GIS Technician IT Temp (Part Time) Broadband Coordinator Program Producer Program Producer (Part Time) Program Producer (Part Time) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 19 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 524,275$ 606,923$ 179,901$ 174,000$ Supplies 31,325 50,172 33,500 30,800 Services & Other Charges 837,059 888,015 151,000 168,286 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 1,392,659$ 1,545,110$ 364,401$ 373,086$ 2009 Budgeted Expenditures Budget Highlights Staffing Summary of Actual & Budgeted Expenditures Information Resources: Support Services The major project above and beyond daily operational requests and duties is assistance in imaging sets of electronic and paper records that are important from both an archival and information retrieval perspective. There are many official documents in the city organization and significant efforts are required to ensure they are physically or electronically scanned into images, with reliable backup and ease of retrieval being of primary importance. Resource limitations are what govern the pace at which such records can be scanned. Some departments may be willing to assist, and may be the most knowledgeable, for these major projects. Supplies 8.26% Personal Services 46.64% Services 45.11% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 20 Staffing Finance: Accounting/Treasury Division Service Overview The Accounting Division's primary mission is to ensure the short and long-term financial stability of the City through the development of sound financial policies and practices. The division is responsible for maintaining financial records and investments for both the City and Economic Development Authority, as well as providing assistance to all city departments and divisions in daily operations. The division also contracts with the Housing Authority to perform accounting services. Division responsibilities include: - Prepare the City's budget document and annual comprehensive financial report - Responsible for collection, investment, disbursement, and documentation of City funds - Coordinate the Capital Improvement Program - Provide billing, collection, and accounting for all utility accounts - Manage cash and investments - Manage debt issuance - Prepare financial forecasts to ensure viability of programs - Risk Management The Accounting/Treasury division is staffed by the Director of Finance, Assistant Finance Director, three (3) Accountants, and five (5) Accounting Clerks. Two of the Clerks are funded by Enterprise Funds. Additional allocations are made to the Economic Development Authority, Housing Authority and other funds throughout the City for services provided by this division. Finance Director Assistant Finance Director City Assessor Accountant (2)Senior Account Clerk Accounting Clerk (4) Commercial Appraiser Residential Appraiser II Residential Appraiser I Senior Accountant Assessing Technician Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 21 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 534,836$ 469,776$ 506,253$ 528,000$ Supplies 3,079 3,548 2,800 3,000 Services & Other Charges 131,792 242,563 153,016 148,450 Capital Outlay - - - - Other Expenses 1,794 1,068 450 1,000 Total Expenditures 671,501$ 716,955$ 662,519$ 680,450$ 2008 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Finance: Accounting/Treasury Division There are no significant increases in the 2009 budget. We will be going out for bid on audit services for the 2008 fiscal year. Personal Services 77.60% Supplies 0.44% Services 21.82% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 22 Finance: Assessing Division Service Overview Staffing The Assessing Division is responsible for the annual valuation and classification process involving 16,000+ parcels of real estate located in St. Louis Park. The assessing function is statutorily required and serves as the foundation for the property tax system in Minnesota. Related services include quintile inspections; new construction and permit inspections; homestead processing; tax court defense; abatements; maintenance and operation of the Property Data System (PDS); resource assistance for special assessments, housing improvement associations, acquisition & classification of right-of-way; and an information support function for internal and external customers. The Assessing Division of the Finance Department will be staffed in 2008 with 5 full-time employees. Staff included in this budget are the city assessor, two residential appraisers, an assessing technician, a commercial appraiser, and a part-time intern. Full-time staffing levels will revert back to the level before the significant Local Government Aid cuts several years ago forced reductions. Finance Director Assistant Finance Director City Assessor Accountant (2)Senior Account Clerk Accounting Clerk (4) Commercial Appraiser Residential Appraiser II Residential Appraiser I Senior Accountant Assessing Technician Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 23 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 357,134$ 370,457$ 445,154$ 471,200$ Supplies 2,967 776 1,200 1,225 Services & Other Charges 12,945 12,350 14,340 15,605 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 373,046$ 383,583$ 460,694$ 488,030$ Summary of Actual & Budgeted Expenditures 2009 Budgeted Expenditures Budget Highlights Finance: Assessing Division The budget for the Assessing Division has fluctuated over the past few years due to staffing changes and internal shifts for cost allocations. The Division and other LOGIS cities utilize a computer assisted mass appraisal system, Property Data System (PDS-LOGIS), which has recently been completed and implemented. The primary cost for the system will be paid for by LOGIS. Budgeting for 2009 brings the Division back to full staff and includes allocation for an intern to leverage the full- time staff workload. Supplies 0.25%Services 3.20% Personal Services 96.55% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 24 Community Development and Planning Service Overview Staffing Community Development encompasses activities associated with Planning and Zoning, Housing, and Economic Development. These activities require interaction with and provide staff support to the City Council, Planning Commission, Board of Zoning Appeals, Housing Authority, Economic Development Authority, Special Task Forces, and the Multi-Family Housing Coalition, to name a few. Services provided include administration of the Zoning & Subdivision Ordinances and the Comprehensive Plan. Community Development also administers housing programs and facilitates economic development and redevelopment. Community Development is staffed by 15 full-time and 2 permanent part-time employees. Consultants are also a key supplement to and support for staff resources. Funding for consultants is either tied to specific projects or comes from special sources like grants or the Development Fund. Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 25 2006 2007 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 912,972$ 969,733$ 1,019,147$ 1,047,000$ Supplies 1,511 986 4,000 4,000 Services & Other Charges 37,806 56,562 57,750 59,750 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 952,289$ 1,027,281$ 1,080,897$ 1,110,750$ 2009 Budgeted Expenditures 2008 Summary of Actual & Budgeted Expenditures Budget Highlights Community Development and Planning The 2009 budget is essentially a flat budget. There are no new staff or programs proposed. There are no budget changes proposed for most non-personnel expense line items with the exception of a $2,000 increase in the Training line item. The increase will fund planning staff participation in the 2009 American Planning Association National Conference which is being held in Minneapolis for the first time in many years. Economic development and housing rehabilitation activities are in separate budgets apart from the General Fund. The Housing Authority is a seperate legal entity from the City. Supplies 0.36% Services 5.38% Personal Services 94.26% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 26 Inspections: Facilities Maintenance Service Overview Staffing The Facilities Maintenance Division is an internal support organization with operating responsibility for City Hall, Police Station, Fire Stations 1 & 2, Westwood Nature Center, the Municipal Service Center, and specific equipment functions. Long-term capital improvements to these sites are coordinated by this division including management of related construction projects . The division assists other City departments in the areas of property management, residential/commercial demolitions, and coordination of the City’s participation in the Hennepin County Sentence- To-Serve (S.T.S.) program. This Division also provides fee based management and maintenance services to the Special Service Districts. This division operates with a full-time staff consisting of one superintendent and five maintenance personnel. Part- time help is used seasonally. Large projects requiring increased staff levels are accomplished by supplemental staff drawn from other divisions. Facilities Maintenance division is part of the Inspections Department. Inspections Director Chief Building Official Environmental Health Official Administrative Supervisor Building Codes Inspectors (3) Building Codes Inspector/Electrical Specialist (2) Building Codes Inspector/Plumbing Specialist Environmental Housing Inspectors (5) Environmental Health Specialists (1.5) Permit Technicians (2) Department Secretary Facilities Maintenance Superintendent Maintenance (5) Inspections Director Chief Building Official Environmental Health Official Administrative Supervisor Building Codes Inspectors (3) Building Codes Inspector/Electrical Specialist (2) Building Codes Inspector/Plumbing Specialist Environmental Housing Inspectors (5) Environmental Health Specialists (1.5) Permit Technicians (2) Department Secretary Facilities Maintenance Superintendent Maintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 27 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 454,538$ 487,900$ 510,784$ 534,000$ Supplies 106,711 144,645 140,500 131,500 Services & Other Charges 316,218 502,649 536,642 538,442 Total Expenditures 877,467$ 1,135,194$ 1,187,926$ 1,203,942$ Summary of Actual & Budgeted Expenditures 2009 Budgeted Expenditures Budget Highlights Inspections: Facilities Maintenance In 2007, the Facilities Maintenance budget increased significantly as certain expenses for the operation of the Municipal Service Center (MSC) building were transferred into this budget. The Facilities Division now has operating responsibilites for the MSC site. The City currently uses the STEP building at the corner of Hwy 7 and Wooddale for storage, but this building will be taken down early in 2009 to prepare for the intersection project. Alternative storage space is being researched for 2009, but this may have little if any impact on this budget. Personal Services 44.35% Supplies 10.92% Services 44.72% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 28 Staffing Service Overview Police Department The mission of the police department is to provide citizens with quality service, professional conduct, and a safe environment in which to live, work and learn. The police department responds to emergencies and investigates crime and disorder in the community. In addition, the department works with the community to develop strategies for the prevention of crime and disorder and the promotion of quality of life in our neighborhoods. In 2009, the authorized sworn staffing of the police department will be maintained at 51 police officers, a ratio of 1.2 per thousand population. The police department also has 18.5 full time non-sworn employees and 3 temporary, part- time employees. Approximately 89% of the police department's operating budget is allocated to personal services. Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 29 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 5,543,241$ 5,754,996$ 6,185,321$ 6,572,294$ Supplies 105,474 120,764 188,850 186,675 Services & Other Charges 580,740 414,783 552,343 547,553 Other Expenses 679 502 600 1,000 Total Expenditures 6,230,134$ 6,291,045$ 6,927,114$ 7,307,522$ Summary of Actual & Budgeted Expenditures Police Department Budget Highlights 2009 Budgeted Expenditures The police department's 2009 budget proposal contains the following requests for new funding or increases in existing categories: Temporary Employees, $3,120 increase - This proposed increase will add 10 hours per week to the CSO/Cadet work schedule for approximately 26 weeks of the year to allow regular maintenance of the batteries in the 4 portable speed boards that were purchased in 2008. The speed boards require battery rotation every 48 hours to ensure continuous operation. Overtime, $10,000 - This proposed increase will allow the clerical staff to work additional hours when needed so that both routine responsibilities and special projects are completed in a timely manner. Recent initiatives such as graffiti tracking, crime free multi-housing and crime pattern analysis have resulted in increased workloads for the clerical staff, and the increase in overtime will allow the clerical supervisor to monitor and assess long-term clerical needs. Police Equipment - Fingerprinting Equipment, $3,680 - Funding for this purchase will come from a source outside of the General Fund. A software connection between the fingerprinting computer and booking photo computer will facilitate the accurate collection and mandatory reporting of fingerprints and other data collected on persons booked at our facility. Other Non-Capital Equipment, $5,700 - This is a one-time funding request to provide and install a two-door proximity access control system for the new COP Shop to be located in the Duke Development. This expense will be funded from another source outside of the General Fund. Subsistence Service, $10,000 reduction - This reduction is based on an analysis of costs paid to Hennepin County for the housing of prisoners over the past 3 years. Supplies 2.55% Services 7.50% Personal Services 89.95% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 30 Fire Service Overview Staffing The St. Louis Park Fire Department is committed, through effective emergency management, to preventing and minimizing the loss of life and property with cooperative delivery of the highest quality and efficient emergency fire and rescue service, emergency medical service, hazardous material emergency response, fire prevention, public education, and emergency management services to the residents in and visitors to St. Louis Park. The department responded to 4,273 calls in 2007. Emergency Medical Services continued to account for about 70% of all Fire Department calls, as it did in 2006. There are no staffing or organization changes planned for 2009. Through the strategic planning process, we are continuing with staff empowerment in the decision making process and enhancement of our customer service. Fire Chief Battalion Chief Operations Battalion Chief Fire Marshal Administrative Assistant Captain Shift A Captain Shift B Captain Shift C Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Battalion Chief Training/Safety Lieutenant Lieutenant Fire Chief Battalion Chief Operations Battalion Chief Fire Marshal Administrative Assistant Captain Shift A Captain Shift B Captain Shift C Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Station 1 Firefighters (3) Paid On Call (4) Station 2 Lieutenant (1) Firefighters (1) Paid On Call (4) Battalion Chief Training/Safety Lieutenant Lieutenant Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 31 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 2,425,991$ 2,542,189$ 2,712,378$ 2,815,680$ Supplies 119,574 41,612 93,648 76,810 Services & Other Charges 321,780 178,900 223,092 229,183 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 2,867,345$ 2,762,701$ 3,029,118$ 3,121,673$ Budget Highlights Summary of Actual & Budgeted Expenditures Fire 2009 Budgeted Expenditures The Fire Department's 2009 budget is increasing by 3.065% over the adopted 2008 budget. This increase is due to the standard anticipated salary increases. Services 7.34%Supplies 2.46% Personal Services 90.20% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 32 Inspections Service Overview Staffing The Inspection Department provides education, issuance of permits, and administration of codes through a variety of inspection programs to benefit the health, safety and vitality of the community. Maintenance and capital improvements of City facilities are also integrated into the Department. Some of the various codes administered to accomplish our mission include Minnesota State Building Codes, Minnesota Food and Environmental Codes, and City Property Maintenance, Housing, and Zoning Codes. In addition, the Department also issues licenses for operation of regulated commercial businesses, restaurants, apartment buildings, and selected contractors. Annual inspections of licensed facilities are conducted to maintain minimum standards. The proposed Inspection Department regular staffing for 2009 is a total of 26 full-time and 1 part-time employees. Staff members engage in numerous interactions with residents, contractors and business operators within the community. Upwards of 20,000 inspections are performed in a year. Consulting services and temporary staffing may also be utilized to maintain the desired service level when permit review and inspection requests exceed regular resources. All of the inspector and supervisor positions are being continually developed as multi-discipline positions to allow the most flexible and effective use of our staffing resources to meet service requests. A total of 8,609 permits and 2,678 licenses were issued in 2007. The resulting fee for service revenue totaled $2,533,548 Inspections Director Chief Building Official Environmental Health Official Administrative Supervisor Building Codes Inspectors (3) Building Codes Inspector/Electrical Specialist (2) Building Codes Inspector/Plumbing Specialist Environmental Housing Inspectors (5) Environmental Health Specialists (1.5) Permit Technicians (2) Department Secretary Facilities Maintenance Superintendent Maintenance (5) Inspections Director Chief Building Official Environmental Health Official Administrative Supervisor Building Codes Inspectors (3) Building Codes Inspector/Electrical Specialist (2) Building Codes Inspector/Plumbing Specialist Environmental Housing Inspectors (5) Environmental Health Specialists (1.5) Permit Technicians (2) Department Secretary Facilities Maintenance Superintendent Maintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 33 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 1,599,238$ 1,650,137$ 1,771,747$ 1,941,500$ Supplies 9,433 12,293 11,500 22,300 Services & Other Charges 94,057 64,237 69,627 72,127 Other Expenses 16,513 16,812 - 18,000 Total Expenditures 1,719,241$ -$ 1,743,479$ -$ 1,852,874$ -$ 2,053,927$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Inspections Inspections 2008 permit revenues will far exceed budgeted projections. This is due in part to significant storm damages which occurred in the summer of 2008 requiring a large number of permits and inspections for roof replacements. Permit revenues are also higher because of the West End Development. Temporary help has been utilitzed as much as possible to handle the increased work load. With the current state of the economy, it is difficult to anticipate where 2009 permit revenues will fall. We have based the 2009 revenue budget on historical data from the past seven years, and we will monitor this closely throughout the year. The expenditure budget is increasing by nearly 11%. This is mainly due to the need for additional staff on a temporary basis to assist with the increased permit and inspection activity for West End and the roof work that was not able to be completed in 2008. Suppliesl 1.09% Services 3.51%Other Expenses .88% Personal Services 94.52% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 34 Public Works: Administration Service Overview Staffing The Public Works Administrative group is designed to provide administrative support for the other three Public Works divisions: Engineering, Operations, and Utilities. This division also manages the Solid Waste program and assists with the management of the roadway and utility infrastructure. A major focus in 2009 will be to evaluate and upgrade multiple management systems used to track and manage city infrastructure assets, such as streets, water, and sewer systems. It is felt that it would be best if one system can accommodate these needs in addition to handling CIP and project management needs. These systems are critical in monitoring and managing department programs, services, and infrastructure assets. The administrative group coordinates data collection and dissemination efforts for the management systems. Finally, the development of an organics co-collection program and the expansion of recycling collection to commercial and high density residential properties is expected to take significant staff efforts in 2009. No staffing changes are planned for 2009. The Public Works Administrative Division consists of one coordinator, one administrative specialist, two information specialists, one solid waste field inspector, and five support staff. This division performs the administrative duties for solid waste as well as other public works divisions. In 2008 a Solid Waste Field Inspector position was created to oversee collection services and contractor operations. Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 35 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 748,138$ 774,591$ 793,133$ 826,500$ Supplies 5,842 2,434 6,000 5,500 Services & Other Charges 33,674 20,089 33,450 23,450 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 787,654$ 797,114$ 832,583$ 855,450$ 2009 Budgeted Expenditures Public Works: Administration Budget Highlights Summary of Actual & Budgeted Expenditures Personnel expenses dominate this budget, making up 95% of the total. A substantial portion of the funding for this budget comes from transfers from the Water, Sewer, Storm Water, and Solid Waste enterprise funds. To be specific, in 2009 it is proposed that approximately $537,397 from enterprise funds should be used to fund personnel costs associated with this division. Supplies 0.64% Services 2.74% Personal Services 96.62% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 36 Public Works: Engineering Service Overview Staffing The Engineering Division of the Department of Public Works primarily provides support services for the Water, Sewer, Street and Traffic Divisions, Community Development, and Parks & Recreation Departments. Division activities focus on implementing long-term capital improvements to the City’s infrastructure from concept through construction including inspections, studies, analysis, surveys, design, public involvement, construction inspection, and administration. Division staff perform bridge inspections, process and analyze traffic requests, conduct traffic studies, provide input on proposed developments, administer permits, and oversee the City’s Pavement Management Program and Comprehensive Water Resource Management Plan (CWRMP). The division selects and manages consultants as needed to provide services for the City. The division provides input and coordination with other municipalities, Hennepin County, State, and various other agencies on various transportation-related issues and projects within or affecting the City. The Division also provides timely response and service to general public requests on a daily basis. The Engineering Division has also developed a Residential Street Maintenance and Rehabilitation Program that provides a strategy for the most cost-effective, long-term maintenance of the City’s streets. This program will reference the Utility Division’s infrastructure management system to facilitate utility and roadway improvements in a coordinated, systematic way. Implementation of this program began in 2005. The Engineering Division currently has a full-time staff of seven (7) consisting of one (1) City Engineer, one (1) Engineering Project Manager, one (1) Engineering Program Coordinator, and four (4) Engineering Technicians. The Division was reduced by two in 2004 due to budget cuts (1 Engineering Technician and 1 Survey Aide). The primary tasks performed are the development, design, construction, and inspection/administration of public improvements and the public involvement efforts associated with the improvements, as well as development reviews, traffic requests, right-of-way permitting, and surface water management. Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 37 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 645,856$ 693,467$ 690,511$ 844,000$ Supplies 4,023 3,362 9,000 9,050 Services & Other Charges 75,909 119,672 85,671 71,250 Capital Outlay - - - - Other Expenses - - - - Total Expenditures 725,788$ 816,501$ 785,182$ 924,300$ Summary of Actual & Budgeted Expenditures Public Works: Engineering 2009 Budgeted Expenditures Budget Highlights A new position is proposed in 2009 for a Senior Project Manager. There should be little if any impact on the General Fund as this position will be almost entirely allocated to capital projects. Supplies 0.98% Services 7.71% Personal Services 91.31% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 38 Public Works: Operations Service Overview Staffing The Operations Division has a mission to ensure the safety of the traveling public and to provide for a safe, functional transportation system within St. Louis Park. The Division is responsible for providing timely response to citizen requests, providing data for short and long range planning to aid City Council and staff in making sound policy and procedural decisions, and cooperating with other branches of city government so as to maximize service delivery to the public. A computerized asset management system is being utilized by the division to assist in the management of the transportation system facilities. Consistent with the Vision St. Louis Park, the division is striving to provide necessary accommodations to the public for transportation needs such as sidewalks, trails, and a safe transportation system. In order to achieve the goal of responsive government, the division is working with employees and residents to provide effective, quality services. Staff paid from this budget include 12 maintenance employees and 3 management employees. Future staffing in 2008 and beyond may be impacted by evolving budget issues. Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Public Works Director Operations Superintendent City Engineer Utilities Superintendent Public Works Coordinator Field Supervisor Field Supervisor Engineering Project Manager Engineering Program Coordinator Engineering Technician (4) Field Supervisor ( 2) Administrative Specialist Information Specialist (2) Support Staff (5) Maintenance (2)Maintenance (10)Maintenance (11) Solid Waste Inspector Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 39 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 1,079,676$ 1,146,358$ 1,219,515$ 1,232,000$ Supplies 296,952 305,045 331,000 374,500 Services & Other Charges 1,023,121 761,829 861,898 894,800 Capital Outlay 8,639 - - - Other Expenses - - - - Total Expenditures 2,408,388$ 2,213,232$ 2,412,413$ 2,501,300$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Public Works: Operations The 2009 budget increased from the 2008 budget primarily due to rising electical costs associated with powering our street lights and traffic signals; increased asphalt material costs due to the rising cost of oil; rising salt costs due to recent supplier shortages, and the continued implementation of our street light replacement program. No major changes are expected in Operations' manpower or services for 2009. Supplies 14.97% Services 35.77%Personal Services 49.25% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 40 Organized Recreation Service Overview Staffing The Organized Recreation Division is responsible for providing the community with recreational programs, special events, athletic leagues and camps, indoor and outdoor facilities, rental services and facility supervision. In addition this Division serves as liaison to the many community youth athletic associations, represents the city on many community service organization groups, facilitates healthy lifestyle initiatives, implements the summer performance series and partners with the community celebration committee. Youth programs continue to grow and new concepts such as family schedule friendly concepts have offered busy lifestyles the opportunity to participate without demanding commitments. Most of the adult league opportunities are full each season making St. Louis Park a convenient choice for adult. Our growth area for adults have been the low impact healthy lifestyle offerings which we continue to explore and expand. Rentals of shelters, buildings, performance areas and athletic fields continue to grow as our commitment to outstanding facilities and market friendly pricing makes our park system the best choice for consumers. The Organized Recreation Division has 6.5 fulltime staff including the Recreation Director. The Administrative Secretary is a shared resource between The Rec Center and the Organized Recreation Division. This division also hires and trains a significant number of community youth seasonally to implement the many programs, leagues, events and facilities offered to the residents of St. Louis Park. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 41 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 682,333$ 716,032$ 711,222$ 729,162$ Supplies 46,845 44,743 66,892 59,451 Other Expenses 13,271 16,403 - - Total Expenditures 1,202,686$ 1,241,759$ 1,250,699$ 1,292,110$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Organized Recreation The 2009 Organized Recreation adopted budget includes the recreation programs we offer for youth and adults. Many of these programs are in response to requests from residents or recent trends in the area of Parks and Recreation. We will continue to change our offerings for youth and family programs to meet the needs of the community. Services 38.97% Supplies 4.60% Personal Services 56.43% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 42 Recreation Center Service Overview Staffing The Recreation Center Division includes the outdoor aquatic park, two indoor ice arenas, a concession stand, and two rooms within the Recreation Center, which can be reserved. The Recreation Center provides a community gathering place and offers wholesome family oriented activities while maximizing revenue opportunities and minimizing operational expenses. The Aquatic Park continues to be a busy place during the summer where children and adults can have fun in the water. The Ice Arenas provide ice for programs operated by St. Louis Park and Benilde St. Margaret's High Schools, local youth hockey associations, a learn to skate program and numerous leaques, clinics and hockey schools. Recreation Center permanent staffing consists of 6.5 employees. The staff consists of one manager, five maintenance staff, and an administrative secretary who shares time between this division and Organized Recreation. Approximately 70 summer staff positions are hired to operate the Aquatic Park in the summer. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 43 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 683,135$ 706,041$ 765,999$ 792,467$ Supplies 170,249 189,814 167,100 170,350 Services & Other Charges 439,648 418,683 413,284 492,350 Capital Outlay - - 12,000 - Other Expenses - 10 - - Total Expenditures 1,293,032$ 1,314,548$ 1,358,383$ 1,455,167$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Recreation Center Personal Services and utility costs are the major budget expenditures. As equipment upgrades are implemented, cost of operation from a utility standpoint will receive increased attention. In 2007, the East Arena metal halide lighting system was replaced with a more energy efficient compact flurescent system. A major emphasis will continue to be operating the Aquatic Park with efficient summer staff. Efficiencies in equipment operation costs are also being evaluated. Revenues will continue increasing as rental fees increase and demand for ice time remains strong. Supplies 11.71% Services 33.83% Personal Services 54.46% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Depreciation: Depreciation expense on fixed assets Capital Outlay: Equipment & improvements Transfers Out: Operating transfers to other funds Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 44 Park Maintenance Service Overview Staffing The Park Maintenance Division maintains the parks and trees in the City. There are 52 park areas including the Westwood Hills Environmental Education Center. Within our parks, we maintain an amphitheater, hockey rinks, ball fields, soccer fields, a water feature, a skate park, irrigation, and trails. In addition to a number of open spaces that we mow throughout the year, there are approximately 500 acres of city property that our maintenance crew mows each year. The Park Maintenance division is also responsible for maintaining the buildings and shelters located in our parks. The Park Maintenance Division includes one superintendent, one field supervisor, and ten maintenance staff. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 45 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 909,122$ 954,291$ 961,356$ 986,400$ Supplies 113,300 100,962 92,700 97,675 Services & Other Charges 585,820 341,649 316,462 369,760 Capital Outlay - - 7,000 7,000 Other Expenses 20 - - - Total Expenditures 1,608,262$ 1,396,902$ 1,377,518$ 1,460,835$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Park Maintenance The 2009 budget includes the following maintenance projects: overlaying basketball and trail areas, scenery work in parks, building outdoor ice rinks, mowing, ball field maintenance, playground inspection and repair, irrigation, and other routine maintenance items that occur in the parks. The maintenance items in the budget are more routine in nature. All of the redevelopment of existing structures and new development items are in our Capital Improvement Program (CIP). Supplies 6.69% Personal Services 67.52% Capital Outlay 0.48%Services 25.31% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 46 Westwood Hills Environmental Education Center (WHEEC) Service Overview Staffing The Westwood Hills Environmental Education Center Division (WHEEC) is responsible for providing environmental education and natural history programming, passive outdoor enjoyment, and wildlife observation on the 160 acre nature preserve. On average over the past ten years, over 28,000 individuals participate each year in formal programs conducted by the naturalist staff or visit the interpretive center. Programs are offered for all ages and abilities, not only at the nature center, but in other city park lands and other metro cities as well. Our staff work closely with local school staff to design programs that support their educational outcomes and requirements. The staff at WHEEC consists of one manager, 2.25 naturalists and 1 clerical support person. There are also 2.25 non- benefited staff who are employed year-round to assist in the designing and teaching of the programs. A very active volunteer staff also assist in the operation and programming of the center. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 47 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 382,913$ 402,949$ 404,679$ 420,586$ Supplies 23,032 21,032 22,650 26,700 Services & Other Charges 31,927 31,216 39,349 44,750 Capital Outlay - - - - Other Expenses 1,099 658 - - Total Expenditures 438,971$ 455,855$ 466,678$ 492,036$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights - Needs to be updated Westwood Hills Environmental Education Center (WHEEC) Several Capital Improvement Program (CIP) projects were completed in 2007 at Westwood. These included repaving the parking lot, driveway and main entrance trail; creating a new paved pedestrian trail; installing two new rain gardens and planting native trees and shrubs. CIP projects planned for 2008 include replacement of the front entrance gate and fence, as well as continuing to replant native trees and shrubs. In an effort to increase revenues, staff is continuing to design and implement new daytime program opportunities for home school students, as well as developing a raptor outreach program to be taught in area schools, businesses, places of worship, etc. Supplies 5.43% Services 9.09% Personal Services 85.48% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 48 Natural Resources & Environment Service Overview Staffing The Environment Division is responsible for coordinating environmental issues and managing natural resources in the City. The forestry portion of the budget is the largest portion and provides disease control, tree planting, and maintenance of 70,000 park and open space trees and 20,000 boulevard trees located throughout St. Louis Park. The City takes a proactive approach to it’s trees by providing some assistance to residents who want to protect their elm trees and oak trees by injecting them with an fungicide injection that helps to prevent Dutch Elm disease and Oak Wilt. The City of St. Louis Park provides tree and weed inspectors who inspect and enforce respective ordinance code on private and public property . The Environment Division provides emphasis on preserving the City's natural resources and areas through management, education and consultation (staff and residents with issues and concerns). This division is also responsible for planting and maintaining flower beds, landscaping, wildlife management, erosion control enforcement, environmental outreach, shore line restoration, surface water quality management and invasive species control, woodland restoration and development plan review. The Environment Division includes one environmental coordinator and seasonal administration, forestry, weed control, and flower planting staff. The full-time position is a shared resource with Water, Solid Waste, and Storm Water divisions. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 49 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services 94,699$ 106,182$ 99,297$ 108,898$ Supplies 13,996 11,322 18,400 19,425 Services & Other Charges 400,085 413,668 171,285 158,670 Capital Outlay 117 - - - Other Expenses - - - - Total Expenditures 508,897$ 531,172$ 288,982$ 286,993$ 2009 Budgeted Expenditures Summary of Actual & Budgeted Expenditures Budget Highlights Natural Resources & Environment The Environmental Coordinator manages and administers the tree maintenance, reforestation and horticulture (gardens) programs, oversees turf and natural resource management, performs development review and assists with the assessment of environmental impact from proposed projects, assists in NPDES/storm water management, and develops various educational programs to educate the public on environmental issues. The City has lost thousands of elm trees to Dutch elm disease. Our goal is to replace all of the trees, public and private, lost to this disease. Personal Services 37.94% Supplies 6.77% Services 55.29% Personal Services: All salary and benefit expenditures Supplies: Office, operational, general, and non- capital Services: Contractual services, insurance, utilities, repairs Capital Outlay: Equipment & improvements Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 50 Parks & Recreation: Vehicle Maintenance Service Overview Staffing Central Equipment Services Division within Parks Maintenance under Parks and Recreation Department is responsible for managing the City's equipment fleet. The division purchases and maintains a wide range of vehicles including cars, light and heavy trucks, and a variety of construction, specialty and public safety equipment. Division services include: development of the vehicle replacement program; preparation of equipment specifications; maintenance and repair of the fleet and management of fuel inventories. The division works closely with all City departments to ensure that the appropriate numbers and types of equipment are available to meet the City's current and future service priorities with emphasis on minimizing fleet costs. The Central Equipment Services Division operates a full time staff of six (6) employees. Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Parks and Recreation Director Manager of Buildings and Structures Nature Center Manager Park Superintendent Recreation Superintendent Administrative Secretary Environmental Coordinator Recreation Supervisors (3) Secretary / Program AideMaintenance (5)Field Supervisor Maintenance (10) Equipment SuperintendentNaturalist (2.25) Office Assistant / ReceptionistMaintenance (5) Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 51 2006 2007 2008 2009 Expenditure Classification Actual Actual Adopted Proposed Personal Services - $ 424,993$ 461,301$ 483,300$ Supplies - 343,723 432,050 552,650 Services & Other Charges - 57,275 130,939 136,475 Capital Outlay - - - 8,352 Transfers Out - 8,746 8,981 - Other Expenses - - - - Total Expenditures -$ 834,737$ 1,033,271$ 1,180,777$ 2009 Budgeted Expenditures Budget Highlights Summary of Actual & Budgeted Expenditures Park & Recreation: Vehicle Maintenance During this years annual budget discussion, rising fuel prices and the effects on City departments and employees, utilization of alternative fuel sources and conservation efforts are items of importance to fleet management. The daily increase in fuel prices and the uncertainty of just how high gas prices will rise is of concern and has impact to not only the fleet, but is of concern to City Administrators, Council Members, employees and St Louis Park residents. Fleet management follows the alternative fuel issue closely and, where appropriate, will purchase equipment that meet department needs and conserve fuel. Operation expenses are strictly monitored through general accounting practices while using Squarerigger fleet management system. Enterprise Funds will continue to be charged for their portion of equipment costs through an annual transfer. Services 11.56% Supplies 46.80% Personal Services 40.93% Capital Outlay 0.71% Personal Services: All salary and benefit expenses Supplies: Office, operational, general, and non-capital Services: Contractual services, insurance, utilities, repairs Depreciation: Depreciation expense on fixed assets Capital Outlay: Equipment & improvements Transfers Out: Operating transfers to other funds Other Expenses: Interest and bank charges Meeting of November 10, 2008 (Item No. 5) Subject: 2009 Budget and Levy Page 52 Meeting Date: November 10, 2008 Agenda Item #: 6 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Communications (Verbal). RECOMMENDED ACTION: Not Applicable. POLICY CONSIDERATION: Not Applicable. BACKGROUND: At every Study Session, verbal communications will take place between staff and Council for the purpose of information sharing. FINANCIAL OR BUDGET CONSIDERATION: Not Applicable. VISION CONSIDERATION: Not Applicable. Attachments: None. Prepared and Approved by: Tom Harmening, City Manager