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HomeMy WebLinkAbout2006/01/09 - ADMIN - Agenda Packets - City Council - Study SessionCity Council Study Session January 9, 2006 6:30 p.m. Discussion Items Approximate Times 1. 6:30 PM Legislative Issues and Priorities for 2006 2. 7:30 PM CSAH 25 Pedestrian Crossing Project Update 3. 8:00 PM Tax Increment Financing 101 4. 8:45 PM Tax Increment District Update/EDA Financial Forecast 5. 9:15 PM Developers Background Checks 6. 9:30 PM Agenda Planning 9:45 PM Adjourn Written Reports for Council Review 7. November 2005 Financial Report 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. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 1 1. Legislative Issues and Priorities for 2006 Administrative Services PURPOSE OF DISCUSSION: County Commissioner Gail Dorfman, Steve Simon, State Rep District 44A, Ron Latz, State Rep District 44B and Senator Steve Kelley, District 44 will be in attend ance to discuss the upcoming 2006 Legislative session. Staff has prepared the attached preliminary list of issues and concerns that we feel should be made known to the City Council and our legislators. As a result of this discussion, and as we near the start of the session, additional issues may come to light. Prepared By: Marcia Honold, Management Assistant Approved By: Tom Harmening, City Manager City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 2 City of St. Louis Park 2006 Legislative Issues and Priorities 1. Permit Exemption for Replacement of Certain Fixtures and Appliances Purpose: To pass a bill that would allow homeowners to replace or upgrade relatively simple fixtures and appliances without obtaining an inspection permit. Status: Needs a sponsor Background: The current Minnesota State Construction Codes (Building, Plumbing, Electrical, and Mechanical) require homeowners and contractors to receive a permit before replacing many relatively simple items within an existing home or business. Some examples of items requiring permits include: faucets, toilets, ranges, dishwashers, refrigerators w/ice makers, etc. These requirements may have made more sense decades ago before the current generation of do -it- yourself products. Cities may not amend the State Code and are obligated to perform an inspection when a permit is issued. There is very little, if anything, to inspect when any of the above referenced items are replaced. City Attorney Tom Scott has clarified that we cannot be contrary to the State permit requirements for the many items that are routinely replaced without permits. Conversations with MN Department of Labor and Industry Construction Codes Division management staff find they are in general agreement that permits are practically not needed for some minor items and acknowledge it is a “don’t ask/don’t tell” environment in most communities. However, since permit requirements are specifically required through various rules and statutes, no official interpretation on intent is likely. This level of regulatory involvement tends to tarnish public perception and diminishes the greater importance of the construction codes and inspection process. Legislative passage of a Bill would be necessary to bring the State Code permit requirements into sync with actual practice and need. 2. Glencoe Switching Yard Purpose: To secure approximately $3 million in funding from Federal, state, local and private entities to relocate the Twin Cities & Western Railroad’s train blocking operations to a new facility outside of the cities of Minnetonka, Hopkins and St. Louis Park. Status: A 2006 capital budget request in the amount of $700,000 was submitted to the Department of Finance on June 10, 2005; the $2 million request from the Federal government was not approved during their last session. Staff anticipates that the request for federal funding will be resubmitted in 2006. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 3 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, located in the City of Glencoe, 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 side of town away from the east side), and it would provide opportunities for economic development. Anticipated project costs of $2,962,000 to $3,000,000 for the yard include the land acquisition and design costs. Proposed funding sources include $2 million of Federal Funds, $700,000 of state funds, $200,000 from the cities, and $100,000 from private investors. 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 2006; the yard is expected to be fully operational by the fall of 2007. 3. Grade Separated Crossing at Hwy 7 and Wooddale Purpose: St. Louis Park has forwarded a request to the Minnesota Department of Finance for $1,000,000 in State Bond Funds to aid in the construction of an $18 million grade separated intersection (interchange) at Highway 7 and Wooddale Avenue. Status: 2006 capital budget request in the amount of $1million was sent to the Minnesota Department of Finance in June, 2005. Background: This request is for $1,000,000 in state funds to aid in financing 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, and is projected to decrease to a level of service F by 2007. MnDOT staff have identified significant safety (crash) concerns in this corridor (Hwy 7 from Hwy 169 to Hwy 100) with the east half of the corridor of particular concern. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 4 Pedestrians and bicyclists currently use this intersection to access mass transit, the regional trail system, the community center, and the High School. In addition, significant traffic as a result of redevelopment and from an adjacent industrial/commercial complex to the south also uses this intersection as a major access point. This project is of both local and regional significance. 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 SWLRT Regional Trail immediately to the south, and the proposed future dedicated bus way or LRT system. Without this intersection improvement project, these other regional systems will not be possible or the existing ones will fail very shortly due to congestion and safety concerns. In addition, future anticipated redevelopment in the area will be stifled. Reconstruction of this intersection to a grade separated intersection is the only practical long term solution to this infrastructure problem. 4. Transportation Funding Issues Background: In general the City of St. Louis Park needs increased revenues to support the two street systems we own and maintain; the Municipal State Aid system (MSA) which comprises 20% of our street mileage and local street (residential) system which is the remaining 80% of the mileage we own. The MSA system is funded primarily by the State. Increasing statewide transportation funding (via gas tax, license tab fees, motor vehicle sales tax revenues) will increase MSA funding for the City of St. Louis Park. The local street system is funded 100% by property taxes or special assessments, neither of which are necessarily liked by residents / taxpayers. The other area the City of St. Louis Park struggles with is advancing improvements to the State transportation system in our community. State revenues have not kept pace with state transportation needs and improvements in our community have been significantly delayed due to the lack of state funding (TH 100, TH 7, and Transit). To following actions have been identified which can help address these funding concerns: 1. Provide increased transportation funding for our MSA system (20% of our city streets). a. Council support by resolution (Attachment A) for passage of the 2006 constitutional amendment which would dedicate all Motor Vehicle Sales Tax revenue to transportation purposes b. Legislative action to increase the state gas tax 2. Allow for increased transportation funding for our local street system (80% of our city streets). a. Legislative approval of the LMC proposed “Transportation Authority” which is enabling legislation to provide a city revenue source for local/ residential streets City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 5 3. Provide increased transportation funding for State transportation system and transit improvements in our community (advance the TH 100 Major Reconstruction project to 2010, finance the reconstruction/upgrade of the TH7/Wooddale Ave intersection to a grade separated interchange in 2009, finance the reconstruction / upgrade of the TH 7 / Louisiana Ave intersection to a grade separated interchange in 2012) a. Council support by resolution (attached) for passage of the 2006 constitutional amendment which would dedicate all Motor Vehicle Sales Tax revenue to transportation purposes b. Legislative action to increase the state gas tax 5. Fire Safety Surcharge Purpose: Repeal 0.5% fire insurance tax on residential and commercial properties and replace with a $5 surcharge on residential and $86 on commercial policies. Status: Minnesota Department of Public Safety, Minnesota State Fire Chief’s Association, Minnesota Fire Department. Association, and Minnesota Professional Firefighters - legislative priority for 2006 Background: The single issue being brought forward by the fire service this year is the “Fire Safety Surcharge”. This surcharge would apply commercial and residential fire insurance policies and would replace a percentage system currently being used. The proposed surcharge would raise $20 million annually (as compared to $6.9 million collected under the current tax structure). Money collected would be used to help fund the Office of the State Fire Marshal along with the MN Board of Fire Training and Education. Funds may also be used for Hazmat Team readiness, structural collapse teams, CISM teams and other items affecting the fire service of Minnesota. This surcharge could benefit St. Louis Park in multiple ways.  Funding for the state Fire Marshal’s Office will help with fire code development, fire investigation, code enforcement inspections and code training.  The State Board of fire training, if funded, will have what it needs to establish a State wide certification program and is the likely group to handle National Response Plan certification and documentation for first responders.  Currently four members of the St. Louis Park fire Department also are members of Minnesota Task Force One, a specialize state wide technical rescue team. This team was formed with Federal grant dollars which covered initial training and equipment. There were no funds allocated for the mandatory recertification training or equipment maintenance. Each participating member’s city is required to pick up these costs for a team that could respond anywhere in the State or nationally. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 6  In emergency response situations, never knowing what today may bring means that some days are just going to be bad. When that happens it is important that responding personnel have a forum that helps handle their mental stress. The CISM team is made up of volunteers who meet and counsel participants after an incident. Each member goes through extensive initial training as well as on going training. With recent state wide budget short falls, agencies that have provided funding in the past no longer have the resources available to fund this important function. 6. Telecommunications Background: The City of St. Louis Park wants to maintain or enhance the current environment to promote innovation in telecommunications by not prohibiting any current government role in the provision of any telecommunication or information service. Staff is not aware of any pending state bills on this issue, but there are Federal bills under consideration – some that completely prohibit government’s role. 7. Pest Control Funding Purpose: Municipal Reforestation bonding request from the Department of Agriculture. Bill authorizes funding for the shade tree disease control program (started in 1974); defines and expands the definition of “shade tree”; includes a provision for cities outside of the Twin Cities Metropolitan Area to be admitted into the program. Status: HF1895, referred to Agriculture, Environment and Natural Resource Committee April 2005. SF1580, referred to the Finance Committee March 2005. Staff anticipates this will be reintroduced in the 2006 Legislative Session. Background: The bill would allow the Department of Agriculture to increase grants to municipalities with approved pest control programs (SLP has a pest control ordinance) to partially support municipal sanitation and reforestation programs to replace trees lost to pests, disease or natural disasters on public lands. In the past two years alone, St. Louis Park has lost over 4000 trees to Dutch elm disease (DED), with approximately 1/3 of those trees residing on public property. The budget impacts incurred by the City, from just these 2 years of losses, is over $350,000. The increased incidence of DED is projected to continue, as well as attacks from the Emerald Ash Borer (now rapidly spreading across Michigan) and Gypsy Moth (halfway across Wisconsin moving westward) expected to happen to us soon. Storm damage is always a concern, as well, with the volatility of storms increasing (i.e. Northern Metro suburbs in 2005). City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 7 8. Protect Government’s Use of Eminent Domain for Redevelopment Purposes Purpose: To protect the city’s ability to use eminent domain. Status: There was a lot of activity around the use of Eminent Domain in 2005. HR 3058 signed by President Bush on November 30, 2005 prohibits Transportation and HUD funds from being used for eminent domain projects unless “employed only for a public use.” Other proposals with more severe restrictions are being considered by Congress. The Private Property Rights Act, HR 4128, was passed by the House in November 2005, and if enacted into law, would severely limit local units of government to redevelop properties. Background: It is important to the City of St. Louis Park to protect Eminent Domain. Auto dealers are proposing sweeping changes to Eminent Domain in Minnesota that could adversely affect the city’s ability to undertake successful redevelopment projects. The League of Cities and AMM are working on their own proposal for modifications to Eminent Domain that would eliminate its use for purely economic development purposes but would continue to allow eminent domain for redevelopment and contaminated sites. First ring, fully developed, aging suburbs like St. Louis Park need the authority to use eminent domain in order to maintain communit y vitality. In addition, protection of the City's authority to use eminent domain for redevelopment and contaminated sites is particularly important. Likewise it is important for Tax Increment Financing to remain available for city projects. 9. MHFA Supportive Housing Programs and DEED Redevelopment Grants Purpose: 2006 bonding bill requests: $33 million of bond proceeds for supportive housing by MHFA; $20 million for redevelopment grants for DEED. Status: A request for an additional $33 million in bond proceeds for inclusion in the 2006 bonding bill has been proposed by The Minnesota Housing Finance Agency (MFHA). In addition, the Department of Employment and Economic Development (DEED) has submitted a proposal for $20 million in bond proceeds to fund their redevelopment grant program. Supported by MN NAHRO for introduction in the 2006 Legislative Session. Background: MHFA has requested additional funding that would be earmarked for supportive housing programs and other MHFA programs, both of which are beneficial to St. Louis Park. DEED is requesting funding for redevelopment grants that are also important. The programs have provided funds that have been used by the city to support housing rehabilitation loans, survey work and redevelopment projects. Support of these programs is important for St. Louis Park’s future housing and redevelopment activities. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 8 10. Levy Limits Background: Any move to mandate levy limits is a concern. If the legislative session outcomes contain levy limits, 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 li mited ability to even account for inflationary increases. 11. St. Louis Park Family Service Collaborative – Cuts in Funding Purpose: To raise awareness of expected funding cuts which will significantly impact the programs and services provided thru the SLP Family Service Collaborative Background: The SLP Family Service Collaborative is a partnership involving the City, School District, Hennepin County, community service agencies (STEP, Teens Alone, YMCA, CASH) and general community representatives. The Mission of the Collaborative is “to improve the lives of children and families in SLP by assessing needs, coordinating services, enhancing communication and leveraging resources”. Over 4,000 SLP individuals and families are annually served thru Collaborative funded services and programs The Collaborative provides funding to family services, programs and organizations in the amount of $240,000 annually. 60% of the funds come from Title IV federal funds and 40% of the funding comes from Federal Medical Assistance. Beginning in 2006, approximately 90% of the funding is anticipated to be cut. As a result, most of the programs noted below will be dramatically reduced or simply eliminated due to a lack of funding. These programs are: Park People Mover Central Clinic (Youth Mental Health) SLP Abuse Projects (Housing) 9th Grade Asset Builders Kids Place – Extended Day Ready, Set, Kindergarten School Attendance Review Family Night Out (JCC) Board (SARB) Growing Grief (Youth) Youth Supplemental Mental Meadowbrook Youth Program Health YMCA Youth Development Program PPL Summer Youth Program Empty Bowls SLP Summer Playground Attention Deficit Services Program Teens Alone Crisis Nursery Community Partners (Housing) City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 9 12. Legislation to Assist with Condominium/Town Home Association Loans Purpose: Simplify Housing Improvement Area (HIA) for St. Louis Park. Background: Currently cities are authorized to establish, upon petition by an association, Housing Improvement Areas (HIA). This tool allows the city to lend associations funds to make common area improvements and impose fees to the owners for repayment. These fees are paid with property taxes, much like a special assessment. Right now the process of creating an HIA is fairly complicated and cumbersome. It involves holding public hearings and creating ordinances, all of which can be burdensome, especially for small improvement projects. We have recently become aware that Brooklyn Park has apparently received legislative approval to simplify the loan process to townhome associations. Our understanding is that their legislation provides the city loan security, without going through a public hearing and ordinance process. This would make condo and townhome rehab projects easier to do and a more attractive means of funding improvements for condo associations. Once we see the Brooklyn Park legislation we can better evaluate whether this is something we would like to pursue for SLP. Needless to say, we would want to discuss the idea with the City Council before we pursued it with the legislators, but based on what we know so far the concept looks promising. City Council Study Session Discussion Item: 010906 - 1 - Legislative Priorities For 2006 Page 10 Attachment A - Sample Resolution Whereas, Minnesota’s transportation infrastructure forms the backbone of the state’s econom y and a has a direct impact on future economic development; Whereas, too many Minnesotans are being killed in traffic crashes on dangerous roadways; Whereas, funding for highway and transit systems in Minnesota has remained stagnant and is failing to keep pace with growing population and growing demands; Whereas, local governments throughout the state are struggling to maintain local transportation systems while the state’s gas tax has not been increased since 1988 and transit budgets have been cut in recent years; Whereas, the Minnesota Legislature has repeatedly turned to revenue from the motor vehicle sales tax, which has been viewed as user fee revenue, in order to fund both highway and transit systems including the current dedication of 54% of motor vehicle sales tax for transportation purposes; Whereas, the legislature passed a proposed constitutional amendment during the 2005 Legislative Session that would appear on the ballot November 7, 2006 asking voters if the remaining 46% of motor vehicle sales tax revenue currently used for other purposes should be used for highways and transit systems; Whereas, passage of this amendment would mean an increase in stable revenue for highway and transit systems throughout the state that would rise to approximately $300 million per year once the transfer of revenue is fully phased-in by 2011; NOW, THEREFORE, Be It Resolved That _________________(city, county) strongly supports passage of the proposed amendment to the Minnesota Constitution dedicating all of t he motor vehicle sales tax revenue to transportation with at least 40% of the revenue for public transit assistance and not more than 60% of the revenue for highway purposes. City Council Study Session Discussion Item: 010906 - 2 - CSAH 25 Ped. Crossing Project Update Page 1 2. CSAH 25 Pedestrian Crossing Project Update - City Project No. 2005-1800 Public Works PURPOSE OF DISCUSSION: To inform the City Council of the status and progress for the CSAH 25 Pedestrian Crossing Project, review the proposed project timeline and process, review crossing alternatives, and to further direct staff accordingly. BACKGROUND: Since 2001, the City of St. Louis Park has been working with Hennepin County, Mn/DOT, and Three Rivers Park District for a trail connection between two regional trails, the Southwest LRT Trail and the Cedar Lake Regional Trail. Essentially, the City and agencies have worked together to establish a trail connection or link along TH 100 as part of improvements to T.H. 100. As part of the regional trail link, a crossing of CSAH 25 will be required. The need for the crossing and link were expressed during a public process several years ago as the City developed its city-wide plan for sidewalks and trails. In November of 2001, the City Council approved a resolution requesting state bonding bill funding for the construction of a grade separated trail crossing at CSAH 25. Despite at least two efforts to receive a bonding bill appropriation from the State legislature for the cost of part of the project, no funding was approved Since that time, the City has worked with the three other agencies to secure funding and an appropriate design location for the proposed pedestrian crossing. INTER-AGENCY PARTICIPATION AND FINANCING: Within the past few months, the City has received at least verbal commitments for funding of the project from the three mentioned agencies. Staff is working to further secure those commitments through a cooperative agreement. As part of this process, the City has retained an engineering consultant (TKDA) to further review and refine proposed overhead and underground crossing concepts and costs (see attached Feasibility Study). Based upon preliminary figures of the Study, a construction cost of approximately $1,000,000 is estimated, depending upon the option pursued. Based on recent verbal concurrence with Mn/DOT, Three Rivers Park District, and Hennepin County, it appears this project can be designed and constructed during 2006. Exact cost participations will be finalized in a cooperative agreement, but have generally been agreed to as follows: The City of St. Louis Park would be responsible for developing and constructing the crossing over (or under) CSAH 25 and Mn/DOT would be responsible for the design and construction of the interim trail connections from the SWLRT Regional Trail north to the dead end of Toledo Avenue (about 1.5 blocks south of Minnetonka Boulevard). Toledo Avenue, south of Minnetonka Boulevard would be utilized for trail purposes. If an interim off road trail is needed in this area, then the City would design and construct it. It is contemplated that all maintenance associated with the above described trail segments and the crossing at CSAH 25 would be the responsibility of the City. City Council Study Session Discussion Item: 010906 - 2 - CSAH 25 Ped. Crossing Project Update Page 2 Obligations of the Park District and Hennepin County would be financing a portion of the CSAH 25 crossing as agreed. Mn/DOT would responsible for designing and constructing the interim trail connections as previously described. The term “interim trail” connections or segments is used as these are being viewed as interim improvements being done in conjunction with the Temporary Lane Addition Project to Trunk Highway 100 (TH100) during 2006. When the major reconstruction of TH100 happens (currently scheduled for a 2014 bid letting) these trail segments may (or may not) need to be relocated. At the time of the major reconstruction project, it is also contemplated that an additional trail segment would be constructed from Minnetonka Boulevard north to the Cedar Lake Regional Trail. The proposed crossing of CSAH 25 would be located and designed now so it will not have to be relocated when the major reconstruction of TH100 occurs in the future. PRELIMINARY DESIGN AND FEASIBILITY: Attached is a Feasibility Study recently prepared by TKDA. The Study identifies specific design issues and estimated costs for both tunnel and bridge alternatives: The estimated construction cost for the bridge option is just over 1 million dollars (depending upon the type of design), while the estimated cost for the tunnel option is slightly less. In summary, both alternatives are feasible, with the bridge option being more expensive than the tunnel option. However, the tunnel would need to address additional groundwater and traffic issues. PROCESS AND SCHEDULE: Because of timing of funding and scheduling of the T.H. 100 Interim Improvement Project, it is recommended that the crossing be constructed in 2006. An accelerated process and schedule would therefore be needed. Similar to other improvement projects in the City, a public process would be included as part of the project development. Because of the critical timing, project location (within highway right of way) and relatively lower construction impact to private properties, a more compact process and schedule is proposed: January 9, 2006 City Council Study Session Late January, 2006 Public Information Meeting February 6, 2006 City Council Authorize Project and Preparation of Plans and Specifications March 6, 2006 City Council Approve Plans and Specifications And Authorize Advertisement for Bids April 6, 2006 Open Bids May 1, 2006 Commence Construction September 1, 2006 Complete Construction City Council Study Session Discussion Item: 010906 - 2 - CSAH 25 Ped. Crossing Project Update Page 3 Please note that the ability to meet the proposed project schedule would depend heavily upon the timeliness of reviews and approvals by the Minnesota Department of Transportation, Hennepin County, and other agencies as applicable. NEXT STEPS: Schedule public information meeting based upon Council input. Narrow direction or decision on a bridge vs. tunnel option. Attachments: Project Location (supplement – 1 sheet) TKDA Feasibility Report (supplement – 9 sheets) Prepared By: Scott Brink, City Engineer Reviewed By: Scott Anderson, Stand In Director of Public Works Approved By: Tom Harmening, City Manager City Council Study Session Discusstion Item: 010906 - 3 - TIF 101 Page 1 3. Tax Increment Financing 101 Finance PURPOSE OF DISCUSSION: The purpose of this discussion is to introduce as well as to review tax increment financing basics. Background The City Council has requested staff to provide information related to the basics of tax increment financing. The presentation will address the following questions:  Why use tax increment financing?  What is tax increment financing?  How does a City use tax increment financing?  How much tax increment financing is necessary for a project to succeed? Mark Ruff, a representative from Ehlers & Associates will be making the presentation. Attachments: Power point presentation Prepared By: Jean McGann, Director of Finance Approved By: Tom Harmening, City Manager City Council Study Session Discussion Item: 010906 - 4 - Tax Increment District Update Page 1 4. Tax Increment District Update Finance PURPOSE OF DISCUSSION: To review the financial condition, debt management, and future value of the City’s tax increment districts. Background: Beginning in 2000, staff and Ehlers & Associates have presented the EDA/Council with a report on issues associated with managing the City’s TIF districts and paying outstanding debt. The last report was presented in July of 2004. Update on TIF Districts/Debt Management: Staff and a representative from Ehlers & Associates will be present to discuss the attached report and answer questions. The report describes the revenues generated from each TIF district and the funds available to pay outstanding obligations. The report also identifies findings, and presents recommendations that should be discussed regarding the management of City TIF districts and related debt. The following are some of the basic findings and recommendations;  The City has agreed to pay for $3,500,000 in public improvements directly related to Park Commons. To date, $3,135,046 of the budget under the development agreement with TOLD has been drawn. The repayments to the City’s interfund loan for these improvements are payable through the life of the Excelsior Boulevard TIF district, which is August 1, 2009. After this date, revenues related to the 20-year amortization obligation will remain in the Park Commons TIF District and be available for use within the constraints of the TIF Act. Prior to 2009, the exact nature of the accounting for and use of the repayments to the Park Commons TIF district will need to be defined.  The City has adjusted the amount of TIF payable to the 2004A Bonds. Transfers to that fund have increased significantly in the past three years. This has reduced the projected TIF available in the Excelsior Boulevard District and also raises issues about the source of funds to pay the bonds after the three older TIF districts are decertified. The 2004A Bonds are payable through 2/1/2018. Options (some of which should be explored with legal counsel) include using the increased tax base from the decertified tax increment districts beginning in 2010 to pay for a tax levy for the bonds, reallocating debt service before 2009 to increase the balance in the TH7 District, which can then be used to pay the Bonds even after the TH7 District is decertified, or paying for the bond issue from the TIF from a newer district. City Council Study Session Discussion Item: 010906 - 4 - Tax Increment District Update Page 2  Newer districts which may have current and future cash balances for eligible TIF activities include; Affordable Housing - Park Center TIF District: $120,000 per year. The increments from Park Center can only be used for rental or owner-occupied housing which meets the income restrictions outlined in the TIF law. Renovation and Renewal - Elmwood TIF District: $485,000 per year beginning in 2011. The increments can only be used to improve areas with buildings in need of renovation or clearance and must be obligated before 2009. Redevelopment- Victoria Ponds: $50,000 to $75,000 per year through 2013 The increments can only be used to improve parcels with substandard buildings. Park Commons $280,000 per year after 2009. The increments can only be used to improve parcels with substandard buildings.  Excess increment is affected by a new law which impacts the ability to use increment above any outstanding budgeted or actual obligations. Excess increment calculations are required each year by the OSA in their reporting forms. Total budgets should be monitored carefully to avoid excess increment. Staff will continue to provide updates on a periodic basis to ensure EDA/Council has a full understanding of each tax increment district, its’ financial condition, as well as how the debt is being managed. Attachments: EDA Financial Forecast Prepared By: Jean McGann, Director of Finance Approved By: Tom Harmening, City Manager City Council Study Session Discussion Item: 010906 - 5 - Developer Background Checks Page 1 5. Developer Background Checks Community Development Purpose of Discussion Councilmember Finkelstein has asked if it would be appropriate to conduct some sort of formal background check on developers when they apply to the EDA for financial assistance. Staff has discussed this issue with the League of Minnesota Cities, Ehlers & Associates, Campbell Knutson, and Kennedy & Graven. Staff would like to discuss this idea briefly with the EDA/Council as part of the TIF 101 and EDA Financial Forecast discussions. Representatives from both Ehlers (the EDA’s financial consultant) and Kennedy & Graven (the EDA’s legal counsel) will be in attendance to share their thoughts on this topic. Background Currently, a fair amount of background information is gathered on developers seeking financial assistance as part of the TIF application process. However, staff does not conduct a formal investigation on individuals. In every case over the past decade, staff or the EDA’s financial and legal consultants have had some previous experience with developers applying for TIF assistance. This track record has helped staff and the EDA evaluate a developer’s ability to perform and fulfill their obligations to the city. The need and appropriateness of formal background checks will be discussed at the study session. Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Study Session Discussion Item: 010906 - 6 - Future Study Session Agenda Planning Page 1 6. Agenda Planning Administrative Services PURPOSE OF DISCUSSION: To discuss techniques the City Manager and the City Council could possibly employ to make City Council meetings (particularly Study Sessions) as productive as possible. BACKGROUND: As part of the recent evaluation of the City Manager, the City Council made it clear that it desired better agenda management relating to the number of items on a given agenda, and time management during City Council meetings. It is my impression that this concern probably related more to Study Sessions than formal Council meetings. The Carver Governance model suggests that one of the things the entire board should be involved in at some level “is setting the boards work plan and agenda for the year and for each meeting”. During our meeting I would like to discuss with you some simple steps we could possibly take to help address the concerns of the Council and make our meetings as productive and policy based as possible. Prepared By: Tom Harmening, City Manager City Council Study Session Written Item: 010906 - 7 - November 2005 Financial Statements Page 1 7. November 2005 Financial Statements Finance PURPOSE: REPORT Attached are the November 2005 financial statements for the General Fund and the Park and Recreation fund. The list below summarizes what is included in this packet. 1. Monthly financial statements for the overall general fund and park and recreation fund by account summary level comparing the annual budget figures to the eleventh month of 2005 actual figures. 2. Monthly financial statements for expenditures of the general fund by each department and for expenditures of the park and recreation fund by each division that compares the annual budget figures to the eleventh month of 2005 actual figures. Please note that a negative sign in front of a revenue figure indicates a positive number or rather actual revenue received. In addition, when comparing the “Monthly Financial Report” to the “Departmental Expenditure report”, the “Departmental Expenditure Report” does not include budgeted or actual transfers nor miscellaneous expenses that are included as “other expense”. In reviewing the November financial statements, it is important to note a couple of key factors that had an impact this month to the monthly statements provided: GENERAL FUND In comparison from October’s to November’s monthly financial report, there were significant decreases in the November report within Licenses and Permits, Charges for Services revenue. Intergovernmental revenue, Personal Services, and Non-Capital expenditures experienced significant increases.  Licenses and Permits Revenue decreased by approximately $107,000 which is attributable to the onset of the winter season when construction activity slows.  Charges for Services Revenue decreased by approximately $115,000 which is attributable to receiving two months of Housing Authority salary reimbursement for approximately $95,000 and $15,000 for Special Service Districts' reimbursement in October. In addition, there was $5,000 received in October for billings associated with the fuel spill last Summer.  Intergovernmental Revenue increased by approximately $2,900 which is attributed to two months of the E-911 funds instead of one.  Personal Services increased by approximately $72,000 because there were 22 working days in November compared to 21 in October. City Council Study Session Written Item: 010906 - 7 - November 2005 Financial Statements Page 2  Non-Capital Equipment increased by approximately $122,000 which is all attributed to the 800 MHz system being installed for the Police Department. But these funds will be reimbursed through grant funds in the near future. PARKS AND RECREATION In reviewing the Park and Recreation fund, the monthly financial report shows increases in Intergovernmental, Charges for Services and Donations/Contributions revenue. Services and Other Charges expenditures had a significant decrease.  Intergovernmental Revenue increased by $22,351 which is entirely attributed to the second half payment by the School District.  The increase in Charges for Services Revenue of approximately $16,000 is attributable to three items: Increases in tree injection revenue of approximately $10,000, $3,000 in tree removal and $3,000 in additional revenue at the Rec. Center for open skating and hockey.  Donations/Contributions had an increase of $4,900 from funds donated to assist schools in coming out to the Westwood Hills Nature Center for fieldtrips.  The decrease in Services and Other Charges of approximately $47,000 is attributed to not receiving the bill for November electric service which was $26,000 in October. In addition, removal of diseased trees costs decreased by approximately $21,000 from October to November. Additional reminders from previous reports:  Since the City budgets on an annual basis, the budget numbers that appear on the monthly financial reports are annual figures. However, the actual revenues and expenditures are monthly figures. Therefore, you will see much fluctuation in the month to month comparison.  The interest revenue allocation is not yet reflected in the Year-to date actual numbers. Therefore, interest revenue is showing as a negative number. This number will be offset with the interest earnings once the allocation is completed.  Due to the fact that overall revenues are low during the beginning months of each year, the city keeps a reserve of approximately four months of expenditures for cash flow purposes. Attachments: Monthly Financial Statements Prepared By: Brian Swanson, Accounting Manager Reviewed By: Jodi Bursheim, Assistant Finance Director Approved By: Tom Harmening, City Manager