HomeMy WebLinkAbout2020/02/24 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
FEB. 24, 2020
6 – 8 p.m. BOARDS & COMMISSIONS ANNUAL MEETING – Treehouse (5757 Wayzata Blvd., SLP)
6:00 p.m. Check-in (light food/refreshments provided)
6:10 p.m. Welcome from Mayor Spano
6:15 p.m. Treehouse presentation
6:25 p.m. Performance by Wat Thai
6:50 p.m. Census update
Boards & Commissions presentations
7:00 p.m. Environment & Sustainability Commission: Sustainable SLP
7:05 p.m. Human Rights Commission
7:10 p.m. Housing Authority
7:15 p.m. Community Technology Advisory Commission
7:20 p.m. Parks & Recreation Advisory Commission
7:25 p.m. Police Advisory Commission
7:30 p.m. Board of Zoning Appeals/Planning Commission
8:00 p.m. Adjourn
CITY COUNCIL STUDY SESSION (*written reports only)
Written reports
1. January 2020 monthly financial report
2. Application for tax increment financing assistance – Parkway Residences
3. Annual review of city financial management policies
4. 2020 Census
5. Senior Community Services 2019 Annual Report
St. Louis Park
Boards & Commissions Annual Meeting
February 24, 2020 | 6 – 8 p.m.
Treehouse (5757 Wayzata Blvd., SLP)
6:00 p.m. Check-in (light food/refreshments provided)
6:10 p.m. Welcome from Mayor Spano
6:15 p.m. Treehouse presentation
6:25 p.m. Performance by Wat Thai
6:50 p.m. Census update
7:00-7:45 p.m. B & C Presentations (5 minutes per commission)
Environment & Sustainability Commission: Sustainable SLP (7-7:05 p.m.)
Human Rights Commission (7:05-7:10 p.m.)
Housing Authority (7:10-7:15 p.m.)
Community Technology Advisory Commission (7:15-7:20 p.m.)
Parks & Recreation Advisory Commission (7:20-7:25 p.m.)
Police Advisory Commission (7:25-7:30 p.m.)
Board of Zoning Appeals/Planning Commission (7:30-7:40 p.m.)
8:00 p.m. Adjourn
2020 Annual Report
Board or Commission: Environment & Sustainability Commission
I. 2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and list
the most significant activities undertaken in 2019.
ESC accomplishments, aligned by 2019 goals, include:
A.Goal: Advise city council & staff, increasing communication and encouraging possible
opportunity areas.
a.Began a regular (quarterly to start) written memo to council from the
commission, sharing our opinions on current initiatives, questions or concerns
we have, and suggestions for future consideration or action (August 2019)
b.Advised and encouraged city council on the purchase of Windsource
subscriptions for renewable energy for city operations
c.Advised and encouraged City Council on the adoption of a Living Streets policy
B.Goal: Support business engagement with the Climate Action Plan, including getting the
Climate Champions program up and running.
a.Worked with the consultant on various materials and messaging (spring 2019)
b.Began discussing ideas for launching the business track of the Climate
Champions program with new sustainability staff (fall 2019)
C.Goal: Support resident engagement with the Climate Action Plan, including developing a
Sustainability Champions program, hosting and attending events, and sharing resources.
a.Hosted and helped plan the electric vehicle and tools event, in partnership with
the American Lung Association, at the Rec Center (June 2019)
b.Tabled at Ecotacular booth at Parktacular (June 2019)
c.Attended National Night Out to engage residents on the city’s CAP (August 2019)
d. Hosted three Solar Power Hour events for residents at city hall, in partnership
with the Midwest Renewable Energy Association and offered bulk buy pricing;
eight solar contracts were signed in St. Louis Park (throughout 2019)
e.Began discussing ideas for launching the residential track of the Climate
Champions program with new sustainability staff (fall 2019)
D.Goal: Support tracking of the Climate Action Plan
a.Advised consultant on CAP tracking tool for city staff (spring 2019)
2020 Annual Report
Board or Commission: Environment & Sustainability Commission
II.2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest priorities,
which may or may not change from year to year. For each goal, list 1-2 key initiatives or
activities that the Board/Commission will be working on in 2020 that will help make
progress toward that particular goal.
A.Advise City Council and staff on Climate Action Plan (CAP) and sustainability topics;
foster regional collaboration to continue being a sustainability leader and more
effectively meet CAP goals.
a.Increase communication between Council and staff and the ESC on CAP and
sustainability-related goals and efforts, serving as ambassadors and advisors of
the work and supporting CAP progress.
b.Work with external partners (commissions, etc.) sharing resources and looking
for ways to collaborate to meet mutual goals.
B.Support non-residential engagement in the city’s CAP.
a.Support Climate Champions program – business track, and engage with
businesses, school district, etc.
b.Support and track benchmarking program year two.
C.Support resident engagement in the city’s CAP.
a.Support Climate Champions program – resident track.
b.Support and track benchmarking program year two.
c.Engage with residents by developing community resources to use at events, for
door knocking, etc. (e.g., videos, ads, op-eds, radio, earned media); hosting
and/or attending local events; sharing information about the city’s existing
sustainability efforts; and engaging more stakeholders in this work by forming
more community partnerships.
2020 Annual Report
Board or Commission: Environment & Sustainability Commission
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
We will strive to engage the greater community in our events and advocacy work,
especially those who are not typically involved in sustainability efforts. We would like to
form more community partnerships and involve more stakeholders in our workgroups,
including underserved residents. Everyone is impacted by sustainability, and everyone
should have a voice in the city’s initiatives.
We’d like to explore development opportunities in equity and outreach, opportunities
to work with other St Louis Park commissions in this area, and additional outreach
tactics and methods.
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
Priority: St. Louis Park is committed to continue to lead in environmental stewardship.
Supporting climate action plan strategies and goals through planning, education,
resources, communication and implementation of programs and initiatives.
The ESC’s work supports the strategic priorities by supporting climate action plan
strategies and goals through planning, education, resources, communication and
implementation of programs and initiatives. Business/resident outreach is aimed at
increasing awareness and participation in the Climate Action Plan among various
audiences in the community. Advising city council/staff will ensure the ESC is
knowledgeable on existing sustainability efforts and identify possible opportunity areas.
2020 Annual Report
Board or Commission: Human Rights Commission
I. 2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and
list the most significant activities undertaken in 2019.
•Host HRC Retreat: HRC hosted a retreat that enable itself to further dig into the
work that it will do in the future. The priorities for the future were established
throughout the retreat.
•Develop a new mission and purpose statement: The HRC has developed a new
mission and purpose statement over the 2019 year. Mission Statement: The
mission of the Human Rights Commission is to support community and St. Louis
Park’s strategic priority of racial equity and inclusion. Vision Statement: We
believe that a just and inclusive community is achievable in St. Louis Park.
•Host events and other forums: We did not host any public events or forums. We
have move that to 2020 work plan. We will be hosting our first event Thursday
February 27th. The event will focus on racial equity and building partnerships.
II. 2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest
priorities, which may or may not change from year-to-year. For each goal, list 1-2
key initiatives or activities that the Board/Commission will be working on in 2020
that will help make progress toward that particular goal.
a.Goal 1 – Host forums to engage community and to hear feedback on what
people want to see from HRC.
•Initiative 1 – Host series of events to discuss new mission statement goals
and how it might align with other’s work. Provide beneficial content to
the community at large.
•Initiative 2 – Be responsive to community needs by listening and helping
support the work of others already doing the work.
b.Goal 2 – Build new partnerships
•Initiative 1 – be collaborative and dynamic in our interaction with
community and other organizations/groups.
•Initiative 2 – create partnerships that are mutually beneficial.
2020 Annual Report
Board or Commission: Human Rights Commission
c.Goal 3 – Aid in outreach efforts around the Census and Voting in SLP.
•Initiative 1 – discuss the Census at various events. Help complete count
committee table at events. And provide overall general promotion of the
Census.
•Initiative 2 – discuss the importance of voting and the census and try to
help reduce barriers of participating in both of those.
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
The new mission statement of HRC is to support community and St. Louis Park’s
strategic priority of racial equity and inclusion. Therefore, HRC sees incorporating
racial equity as fundamental to HRC’s current and future work. With this new
reframing the intention is to build partnerships that enable HRC to easily support
racial equity in its own actions and support it indirectly via support of others working
towards it.
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
The HRC’s work can impact most if not all of the strategic priorities in some way. The
ability to advocate for justice and racial equity in all cities plans and policies will have
a permeating effect. To be more concrete we see the HRC most immediate work will
have the greatest impact on building social capital and uplifting racial equity.
2020 Annual Report
Board or Commission: Housing Authority
I.2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and list
the most significant activities undertaken in 2019.
a.Oversee the administration of the Housing Authority’s core federally funded rental
assistance programs including review and approval of program policies, ensuring
sound fiscal policies and funding administration, approve the submission of
competitive grant applications to secure new and renewal funding and review and
approve the 5-year Agency Plan and the capital improvement plan for the Public
Housing properties.
i.The HA oversaw the fiscal and administrative integrity of HUD’s federally
funded rental assistance programs ensuring maximum utilization and
administration at a level to maintain HUD’s High Performer Standard in both
the Public Housing and Housing Choice Voucher (HCV) programs. Staff
implemented two new rent HCV rental assistance programs, Mainstream for
non-elderly disabled individuals and Family Unification Program in partnership
with Hennepin County child protection services. The HA also transitioned 32
tenants at Lou Park from project-based vouchers to tenant-based vouchers
with minimal impact to the residents. Going forward, these vouchers will be
administered by the HA. Combined, these programs provide rental assistance
to approximately 500 low-income households in the community.
ii.The HA had a clean financial audit with no findings for FYE 2018.
iii.The HA continued to support staff’s submission of competitive grants applications
for HUD renewal funds to ensure continuation of the Family Self-Sufficiency
Program and the Resident Service Coordinator at Hamilton House and the
application and subsequent award of 32 new tenant-based vouchers for Lou Park.
An application was also submitted for an additional 25 Family Unification
Vouchers; award decision is still pending.
iv.The HA Board held and presided over the annual HA agency plan public hearing,
received and reviewed comments from the tenant advisory committee, reviewed
and approved the HA’s capital improvement plans and annual budget for the public
housing properties owned and managed by the HA.
v.The HA Board continued to support HA partnerships to create and administer rental
assistance opportunities with Hennepin County, Wayside, Vail Place, STEP and the SLP
School District and to continue to seek future opportunities to partner.
2020 Annual Report
Board or Commission: Housing Authority
b.Oversee the administration of programs that support/promote a well maintained
housing stock through the use of the city’s housing rehab programs including the Move-
Up-In-The-Park programs, the Discount Loan Programs, the Emergency Rehab Grants
and the HIA designation. Continue to explore opportunities to address unmet housing
rehab needs.
i.The board reviewed and provided input to staff on the proposed annual allocation
of the CDBG funds, proposed modifications to existing housing programs, and
reviewed and approved initial and renewal contracts related to the administration
of various housing programs.
c.Explore/support/provide input on strategies to promote the creation and
preservation of affordable rental and homeownership options for low and
moderate income households in the community including both new construction
and preservation of existing naturally occurring affordable housing.
i.The board reviewed and provided input to staff and council on new housing
initiatives and programs to create and preserve affordable housing including the
4d program, multi-housing rehab loan program, and the Legacy program.
ii.The board reviewed and provided input on the proposed Housing and Land Use
Goals and Strategies of the 2040 Comprehensive Plan.
II.2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest
priorities, which may or may not change from year-to-year. For each goal, list 1-2 key
initiatives or activities that the Board/Commission will be working on in 2020 that will
help make progress toward that goal.
a.Oversee the administration of the Housing Authority’s core federally funded rental
assistance programs including review and approval of program policies, ensuring
sound fiscal policies and funding administration, approving the submission of
competitive grant applications to secure new and renewal funding and review and
approval of the 5-year capital improvement plan for the Public Housing properties.
i.Oversee the fiscal and administrative integrity of HUD’s federally funded
rental assistance programs ensuring maximize utilization and administration
at a level to maintain HUD’s High Performer Standard.
ii.Apply for additional subsidies/grants to support additional affordable units.
2020 Annual Report
Board or Commission: Housing Authority
b.Support and provide input on staffs continued exploration of strategies to promote
the creation and preservation of affordable rental and homeownership options for
low-and moderate-income households in the community including both new
construction and preservation of existing naturally occurring affordable housing.
i.Staff will continue to explore and develop programs together with regional
partners and housing industry groups to preserve NOAH and to explore the
creation of affordable housing opportunities that will be reviewed with the HA
board for their input. Staff will continue to convene the Regional NOAH
preservation workgroup facilitated by Urban Land Institute (ULI) with
representatives from the county, state and regional municipalities and
affordable housing industry groups and advocates. The HA Board will review
proposed initiatives and provide input to staff and the council.
c.Oversee the administration of programs that support/promote a well-maintained
housing stock using the city’s housing rehab programs including the Move-Up-In-The-
Park programs, the Discount Loan Programs, the Emergency Rehab Grants and the HIA
designation. Continue to explore opportunities to address unmet housing rehab needs.
i.Continue to oversee administrative contracts and provide review and input on the
city’s housing rehab and design programs. Evaluate programs annually to ensure
they continue to meet the needs of the community and continue to identify and
explore new initiatives to meet unmet needs.
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
The HA will administer the core housing programs in conformity with the Civil Rights
Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and
title II of the Americans with Disabilities Act of 1990, and will affirmatively further fair
housing by examining programs or proposed programs with a racial equity and
inclusion lens, identifying any impediments to fair housing choice within those
program. The Board will attend racial equity and inclusion training provided by the city.
In 2019, staff drafted a local Fair Housing Policy that was adopted by council. Staff will
be coordinating with regional partners to develop a fair housing training program for
city staff and policy makers.
2020 Annual Report
Board or Commission: Housing Authority
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
The work of the HA board and staff supports several of the city’s strategic priorities, but
most directly supports the following strategic priority.
St. Louis Park is committed to providing a broad range of housing and neighborhood-
oriented development.
•Providing more diverse and creative housing choices to meet the needs of current
and future residents while preserving existing affordable housing.
•Fostering and facilitating reinvestment and redevelopment of neighborhood-
oriented businesses and services.
•Conducting research to further understand what people want and need access to
in the community, i.e., food, services, housing options, business opportunities,
gathering spaces.
2020 Annual Report
Board or Commission: Community Technology Advisory Commission
I. 2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and
list the most significant activities undertaken in 2019.
•Commission members participated in facilitated work sessions to consider the
mission and goals of the commission.
•Based on the work sessions and subsequent meetings with staff and with city
council, the mission and goals of the commission changed, as did the name. This
required changes to the commission bylaws and ordinance.
•Contact with local schools resulted in recruitment of a new youth member to the
commission.
II. 2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest
priorities, which may or may not change from year-to-year. For each goal, list 1-2
key initiatives or activities that the Board/Commission will be working on in 2020
that will help make progress toward that particular goal.
a.Host a smart cities workshop.
•Work with city staff to shape the direction of the workshop
•Use the resulting information to direct the 2020 work of the commission
b.Attract new members who are interested in the mission and goals of the
commission and can help move initiatives forward.
•Target interested residents and invite them to apply.
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
•Participate in training with the city’s race equity manager to understand
more about the city’s race equity initiatives.
•Consider race equity and inclusion when recruiting new members so that
the commission is reflective of the community.
•Actively seek to understand how smart cities technologies can help
address race equity and inclusion issues.
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
The commission will be using the strategic priorities as framework for its smart cities
workshop and any subsequent work. This will ensure the focus is on projects or
initiatives that advance the strategic priorities.
2020 Annual Report
Board or Commission: Community Technology Advisory Commission
2020 Annual Report
Board or Commission: Parks & Recreation Advisory Commission
I. 2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and
list the most significant activities undertaken in 2019.
a.Review and recommend policy for use of the new pickleball courts. The
Commission met with a representative from Southwest Metro Pickleball
Association to obtain information on the sport and assist in the creation of a
policy for pickleball.
b. Inform Youth Associations and other community groups who present to PRAC
that one of the city’s five strategic initiatives has to do with Racial Equity and
Inclusion & encourage them to make it a priority. Youth Associations and
community groups were invited to provide updates to the Commission on their
successes and opportunities.
c.Review and recommend changes to the by-laws. The Commission reviewed the
by-laws and approved as is.
II. 2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest
priorities, which may or may not change from year-to-year. For each goal, list 1-2
key initiatives or activities that the Board/Commission will be working on in 2020
that will help make progress toward that particular goal.
a.Goal 1: Westwood Hills Nature Center grand opening and ribbon cutting
•Initiative 1: Assist with planning and marketing.
•Initiative 2: Assist at the event.
b.Goal 2: Review Historical Society’s Master Plan
•Initiative 1: Invite Historical Society to a meeting present their master plan.
•Initiative 2: Review and provide feedback on next steps.
c.Goal 3: Review Access to Fun (Scholarship program) guidelines.
•Initiative 1: Review program and guidelines.
•Initiative 2: Evaluate first year of program and suggest changes to staff.
2020 Annual Report
Board or Commission: Parks & Recreation Advisory Commission
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
•Review Capital Improvement Projects and programs with a race and equity lens.
•Invite Race and Equity coordinator to meet with Commission to discuss
opportunities as they arise.
•Review and recommend changes to the scholarship guidelines used for those that
cannot afford it.
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
The Parks and Recreation Advisory Commission places a great emphasis on
environmental stewardship. They discussed the possibility of purchasing electric
blowers and chainsaws for the maintenance crew. They were also involved in talking
through the options for the new Westwood Hills Nature Center that would work
towards the council’s goal of achieving Zero Energy. PRAC also leads the annual
Minnehaha Creek clean up event where several truckloads of garbage are removed
from the creek annually.
The Parks and Recreation Advisory Commission meets with the youth associations
and other community groups to encourage participation and encourages them to
find ways to break down barriers. They have been committed to creating
opportunities to build social capital through community engagement for many years
before it became a strategic priority.
2020 Annual Report
Board or Commission: Police Advisory Commission
I. 2019 Goals and Key Initiatives: Provide a progress report on your 2019 goals and
list the most significant activities undertaken in 2019.
a.Provided input into the St. Louis Park Police Department Body-worn Camera
policy. Police Department has been keeping PAC informed on the
implementation process throughout 2019.
b.Hosted the second annual SLP Trail 5k Run/Walk on April 28th, 2019. Fundraising
for Perspectives Inc. Furnishing Hope program and Park Flyers Track and Field.
Approximately 100 individuals registered to participate in the 5K and Race a Cop.
We raised approximately $2,000; the funds were divided equally and donated to
Perspectives Inc. Furnishing Hope Program and Park Flyers Track and Field.
c.Assisted in fundraising and staffing for the 12th annual Crime Prevention Golf
Tournament that raised $4,000.
d.Provided recommendations to Lt. Garland to send to City Council in January 2020
regarding the Crime/Drug Free Housing Ordinance.
II. 2020 Goals: List your board/commission’s most important goals (up to 3) for 2020.
These goals should be statements that reflect the board/commission’s highest
priorities, which may or may not change from year-to-year. For each goal, list 1-2
key initiatives or activities that the Board/Commission will be working on in 2018
that will help make progress toward that goal.
a.Increase our efforts in Community Outreach: Host Public Forums
I.Review Initial Report from Police Department of Body Worn Cameras
II.TBD
b.Conduct fundraising
i.Host 3rd Annual SLP Trail 5k Run/Walk on April 26, 2020. Fundraising
for Perspectives Inc. Furnishing Hope Program and MN Flyers Track
and Field.
ii.Assist with golf fundraiser if held
2020 Annual Report
Board or Commission: Police Advisory Commission
c.Partner with City Council on collecting race data on police/citizen contacts.
d.Review department statistics about calls, stops & arrests at every PAC meeting.
e.Learn about Police Department Strategic 3-year plan
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
a.Engage all parts of the St. Louis Park community, specifically those who may not
be personally represented on the commission by hosting public forums on
policing topics.
b.Partner with City Council on collecting race data on police/citizen contacts
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
a.The Police Advisory Commission is committed to be a leader in racial equity and
inclusion by hosting public forums and participating in community events. By
doing so we are encouraging all community members to share their questions,
comments and concerns on policing matters. Through reviewing crime statistics;
opportunities for improvement may arise to make the city a more safe,
comfortable and reliable area.
b.Our input into the Crime Free/Drug Free Housing ordinance supported the
Housing and neighborhood-oriented development priority
2020 Annual Report
Board or Commission: Board of Zoning Appeals
I. 2019 Goals and Key Initiatives: The Board of Zoning Appeals (BOZA) is charged with
the responsibility of responding to requests from property owners for:
•Variances to the regulations of the zoning ordinance.
•Appeals from any order, decision, or interpretation of the text of the zoning
ordinance made by staff.
The BOZA may also act in an advisory capacity on matters referred to it by the city
council.
II. 2020 Goals:
Ensure equal application of the judicial process to all cases, which are fairly
decided based upon legally relevant factors.
•Commissioners will make every effort to attend each meeting to ensure equal
review and application of the process and law for each case.
•Commissioners will familiarize themselves with the city code and the materials
delivered to the BOZA in advance of the hearing.
Insure that BOZA procedures and structure best facilitate the expeditious and fair
resolution to disputes.
•Commissioners will make every effort to attend each meeting to ensure there is
a quorum.
•Prior to the hearing, information pertinent to the application will be made
available to the BOZA, applicant, and any others interested in the application.
The BOZA will make every effort to deliver the requested information by
whatever means needed or preferred by the requestor.
Be sensitive and responsive to the needs of a diverse community.
•The BOZA will make every effort to ensure the services offered by the BOZA are
communicated to all residents of the community.
•The BOZA will make every effort to communicate hearing notices to all residents
of the community, and make reasonable accommodations at the hearing so
everyone can attend.
2020 Annual Report
Board or Commission: Board of Zoning Appeals
III.Race Equity and Inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified above?
•Encourage people to be engaged in community decisions.
•Identify diverse individuals to apply to serve on the BOZA when vacancies occur.
IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities?
•Receiving input from neighbors or others impacted by applications is important
for the BOZA. The BOZA also acknowledges that not all persons are comfortable
speaking in a public forum, especially when it is in opposition to a neighbor’s
application. Therefore, the BOZA welcomes many forms of communication
including speaking before the BOZA, submitting written communication with or
without the author present at the meeting, or accepting a proxy authorized to
speak for them.
•The BOZA conducts hearings in a manner that is respectful to all in attendance.
This includes managing the process and dialogue with neighbors that may be in
opposition over a particular application with the goal that they will be able to
continue to live as neighbors and friends, or at least with respect for one another
after the process is completed.
2020 Annual Report
Board or Commission: Planning Commission
I. 2019 goals and key initiatives: Provide a progress report on your 2019 goals and list
the most significant activities undertaken in 2019.
Key duties:
•Review development projects, and planning studies and zoning amendments.
•Hold public hearings and make recommendations to the city council.
2019 activities: The commission reviewed 22 applications in 2019, including:
•Development review of Bridgewater Bank Headquarters, PLACE Via Luna,
Parkway Residences, Benilde-St. Margaret’s, and Holy Family Academy.
•Rezoned over 70 properties to be consistent with the St. Louis Park 2040
comprehensive plan future land use map.
•Reviewed zoning code amendments related to the mixed-use zoning district,
C-1 retail and service size requirements, small cell wireless ordinance, home
occupations, accessory dwelling units, ground floor window transparency,
inclusionary housing, and parking in Historic Walker Lake.
•Reviewed planning studies for the Historic Walker Lake, Texa-Tonka and
former Sam’s Club areas.
II. 2020 goals:
Review development applications: Hold study sessions and hearings in order to
make informed recommendations to city council.
Long range planning activities: Review and provide input on several studies.
•Texa-Tonka small area plan
•Food access study
Zoning code studies:
•Accessory dwelling unit ordinance
•Historic Walker Lake zoning district
•Transit Oriented Development zoning district
2020 Annual Report
Board or Commission: Planning Commission
•Home occupations ordinance
•Single-family building scale study
•Architectural materials requirements and adopt ordinance revisions
III.Race equity and inclusion: How may you continue to incorporate or promote race
equity and inclusion in the key initiatives/activities identified in above?
•Participate in racial equity and inclusion training.
•Identify strategies to broaden participation and reduce barriers to public
participation. Review notification methods, online opportunities to submit input,
and consider when providing translation services, transportation or childcare
may be warranted.
IV.Strategic priorities: How is the commission’s work supporting the strategic priorities?
Much of planning commission’s work deals with development and the built
environment. The commission primarily promotes strategic priority #3: St. Louis Park
is committed to providing a broad range of housing and neighborhood-oriented
development. Through review of development projects and city policies our work
also supports strategic priorities #1: St. Louis Park is committed to being a leader in
racial equity and inclusion in order to create a more just and inclusive community for
all; and #5: St. Louis Park is committed to creating opportunities to build social
capital through community engagement.
Meeting: Study session
Meeting date: February 24, 2020
Written report: 1
Executive summary
Title: January 2020 monthly financial report
Recommended action: No action required at this time.
Policy consideration: Monthly financial reports are part of our financial management policies.
Summary: The monthly financial report provides an overview of general fund revenues and
departmental expenditures and a comparison of budget to actual throughout the year. A
budget to actual summary for the four utility funds is also included with this report.
Financial or budget considerations: Expenditures should generally be at approximately 8% of
the annual budget at the end of January. General fund expenditures were at 7% of the adopted
annual budget.
Strategic priority consideration: Not applicable.
Supporting documents: Summary of revenues and expenditures – general fund
Budget to actual – enterprise funds
Prepared by: Darla Monson, accountant
Reviewed by: Tim Simon, chief financial officer
Approved by: Tom Harmening, city manager
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Actual $2,899
Budget $3,475 $6,949 $10,424 $13,898 $17,373 $20,847 $24,322 $27,796 $31,271 $34,745 $38,220 $41,694
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$ THOUSANDS Monthly Expenditures -General Fund
Summary of Revenues & Expenditures - General Fund As of January 31, 2020 20202020201820182019201920202020Balance YTD Budget Budget Audited Budget Unaudited Budget YTD Jan Remaining to Actual %General Fund Revenues: General Property Taxes25,705,886$ 26,597,928$ 26,880,004$ 26,983,990$ 28,393,728$ 28,393,728$ 0.00% Licenses and Permits3,924,648 4,001,644 4,103,424 5,515,346 4,660,811 583,040 4,077,771 12.51% Fines & Forfeits269,200 282,146 279,700 265,509 280,000 525 279,475 0.19% Intergovernmental1,864,877 2,006,435 1,760,900 1,672,651 1,760,082 4,121 1,755,961 0.23% Charges for Services2,162,410 2,180,589 2,187,319 2,081,341 2,273,824 146,731 2,127,093 6.45% Rents & Other Miscellaneous1,318,037 1,427,744 1,367,012 1,498,583 1,456,102 159,318 1,296,784 10.94% Transfers In1,929,090 1,929,076 1,999,877 1,949,877 2,038,338 165,195 1,873,143 8.10% Investment Earnings 160,000 251,494 180,000 200,869 210,000 210,000 0.00% Other Income40,950 35,802 31,300 46,019 621,280 523 620,757 0.08% Use of Fund Balance *523,835 298,156 224,466 - 0.00%Total General Fund Revenues37,898,933$ 38,712,858$ 39,087,692$ 40,438,650$ 41,694,165$ 1,059,453$ 40,634,712$ 2.54%General Fund Expenditures: General Government: Administration1,341,606$ 1,340,282$ 1,837,620$ 1,654,314$ 1,868,599$ 98,218$ 1,770,381$ 5.26% Finance978,752 964,036 1,034,199 1,074,440 1,124,045 87,814 1,036,231 7.81% Assessing759,865 710,715 772,746 751,737 808,171 64,198 743,973 7.94% Human Resources796,666 735,050 805,620 754,458 823,209 62,373 760,836 7.58% Community Development1,479,911 1,559,721 1,502,521 1,515,372 1,571,894 128,965 1,442,929 8.20% Facilities Maintenance1,162,342 1,223,109 1,170,211 1,207,970 1,265,337 55,869 1,209,468 4.42% Information Resources1,589,432 1,526,028 1,674,937 1,515,537 1,709,255 131,619 1,577,636 7.70% Communications & Marketing755,940 829,732 805,674 786,918 828,004 42,711 785,293 5.16% Community Outreach27,637 12,085 0.00%Total General Government8,892,151$ 8,900,758$ 9,603,528$ 9,260,746$ 9,998,514$ 671,767$ 9,326,747$ 6.72% Public Safety: Police9,930,681$ 9,877,014$ 10,335,497$ 10,507,205$ 10,853,821$ 849,658$ 10,004,163$ 7.83% Fire Protection4,657,973 4,630,520 4,813,078 4,763,096 5,040,703 377,385 4,663,318 7.49% Building 2,544,762 2,295,910 2,555,335 2,416,053 2,696,585 202,417 2,494,168 7.51%Total Public Safety17,133,416$ 16,803,444$ 17,703,910$ 17,686,354$ 18,591,109$ 1,429,459$ 17,161,650$ 7.69% Operations: Public Works Administration230,753$ 208,050$ 290,753$ 215,911$ 273,318$ 27,613$ 245,705$ 10.10% Public Works Operations3,091,857 2,998,935 3,111,481 3,096,782 3,331,966 209,809 3,122,157 6.30% Vehicle Maintenance1,253,367 1,210,279 1,242,236 1,265,442 1,278,827 113,049 1,165,778 8.84% Engineering525,834 552,432 570,377 583,453 551,285 28,369 522,916 5.15%Total Operations5,101,811$ 4,969,696$ 5,214,847$ 5,161,587$ 5,435,396$ 378,840$ 5,056,556$ 6.97% Parks and Recreation: Organized Recreation1,582,490 1,499,780 1,579,569 1,494,743 1,637,002 104,714 1,532,288 6.40% Recreation Center1,860,755 2,004,937 1,949,657 2,041,592 2,061,394 100,057 1,961,337 4.85% Park Maintenance1,830,530 1,866,744 1,833,297 1,799,875 1,906,363 124,134 1,782,229 6.51% Westwood Nature Center622,346 599,704 643,750 611,950 748,683 45,816 702,867 6.12% Natural Resources559,662 376,359 484,784 429,784 504,143 9,473 494,670 1.88%Total Parks and Recreation6,455,783$ 6,347,524$ 6,491,057$ 6,377,944$ 6,857,585$ 384,193$ 6,473,392$ 5.60% Other Depts and Non-Departmental: Racial Equity and Inclusion -$ -$ -$ 4,592$ 314,077$ 23,127$ 290,950$ 7.36% Sustainability26,283 497,484 11,744 485,740 2.36% Transfers Out1,040,000 0.00% Contingency and Other315,772 186,966 74,350 115,657 0.00%Total Other Depts and Non-Departmental315,772$ 1,226,966$ 74,350$ 146,531$ 811,561$ 34,871$ 776,690$ 4.30%Total General Fund Expenditures37,898,933$ 38,248,388$ 39,087,692$ 38,633,162$ 41,694,165$ 2,899,130$ 38,795,035$ 6.95%*Primarily related to E911 expenditures from restricted fund balance.Study session meeting of February 24, 2020 (Item No. 1) Title: January 2020 monthly financial reportPage 2
Budget to Actual - Enterprise FundsAs of January 31, 2020 Current BudgetJan Year To DateBudget Variance% of BudgetCurrent BudgetJan Year To DateBudget Variance% of BudgetCurrent BudgetJan Year To DateBudget Variance% of BudgetCurrent BudgetJan Year To DateBudget Variance% of BudgetOperating revenues: User charges 7,472,931$ 244,698$ 7,228,233$ 3.27% 7,897,086$ 267,287$ 7,629,799$ 3.38% 3,510,090$ 147,520$ 3,362,570$ 4.20% 3,065,882$ 100,392$ 2,965,490$ 3.27% Other 533,242 6,835 526,407 1.28% 43,000 43,000 0.00% 169,100 169,100 0.00% - - Total operating revenues8,006,173 251,533 7,754,640 3.14% 7,940,086 267,287 7,672,799 3.37% 3,679,190 147,520 3,531,670 4.01% 3,065,882 100,392 2,965,490 3.27%Operating expenses: Personal services1,521,345 127,864 1,393,481 8.40% 809,868 69,891 739,977 8.63% 539,901 35,939 503,962 6.66% 896,367 57,944 838,423 6.46% Supplies & non-capital268,300 5,780 262,520 2.15% 72,500 72,500 0.00% 247,550 36 247,514 0.01% 12,500 12,500 0.00% Services & other charges2,073,702 41,009 2,032,693 1.98% 4,621,847 706,644 3,915,203 15.29% 2,920,580 3,455 2,917,125 0.12% 329,946 8,254 321,692 2.50% Depreciation * Total operating expenses3,863,347 174,653 3,688,694 4.52% 5,504,215 776,535 4,727,680 14.11% 3,708,031 39,429 3,668,602 1.06% 1,238,813 66,199 1,172,614 5.34%Operating income (loss)4,142,826 76,880 4,065,946 1.86% 2,435,871 (509,248) 2,945,119 -20.91% (28,841) 108,090 (136,931) -374.78% 1,827,069 34,193 1,792,876 1.87%Nonoperating revenues (expenses): Interest income 7,450 7,450 0.00% 13,250 13,250 0.00% 13,000 13,000 0.00% 5,600 5,600 0.00% Debt issuance costs- - - Interest expense/bank charges(412,950) (203,835) (209,115) 49.36% (87,250) (33,136) (54,114) 37.98% (23,500) (23,500) 0.00% (34,850) (6,087) (28,763) 17.47% Total nonoperating rev (exp)(405,500) (203,835) (201,665) 50.27% (74,000) (33,136) (40,864) 44.78% (10,500) - (10,500) 0.00% (29,250) (6,087) (23,163) 20.81%Income (loss) before transfers3,737,326 (126,955) 3,864,281 -3.40% 2,361,871 (542,383) 2,904,254 -22.96% (39,341) 108,090 (147,431) -274.75% 1,797,819 28,107 1,769,712 1.56%Transfers inTransfers out(638,635) (53,220) (585,415) 8.33% (873,785) (72,815) (800,970) 8.33% (248,289) (20,691) (227,598) 8.33% (342,130) (28,511) (313,619) 8.33%NET INCOME (LOSS)3,098,691 (180,175) 3,278,866 -5.81% 1,488,086 (615,199) 2,103,285 -41.34% (287,630) 87,399 (375,029) -30.39% 1,455,689 (404) 1,456,093 -0.03%Items reclassified to bal sht at year end: Capital Outlay(2,649,356) (2,649,356) 0.00% (1,411,750) (1,411,750) 0.00%- - - (3,245,049) (3,245,049) 0.00%Revenues over/(under) expenditures449,335 (180,175) 629,510 76,336 (615,199) 691,535 (287,630) 87,399 (375,029) (1,789,360) (404) (1,788,956) *Depreciation is recorded at end of year (non-cash item).Water SewerSolid WasteStorm WaterStudy session meeting of February 24, 2020 (Item No. 1) Title: January 2020 monthly financial reportPage 3
Meeting: Study session
Meeting date: February 24, 2020
Written report: 2
Executive summary
Title: Application for tax increment financing assistance – Parkway Residences
Recommended action: This staff report outlines Sela Investment’s application for tax increment
financing (TIF) in connection with its proposed Parkway Residences project. Staff would
appreciate input on the policy questions noted below.
Policy consideration: Does the EDA continue to support Sela Investment’s Parkway Residences
project proposed along 31st Street West? Is the EDA willing to consider entering into a
redevelopment contract to reimburse the Developer for up to $3.35 million in qualified costs
through tax increment financing generated by a portion of Phase I to enable the project to
achieve financial feasibility?
Summary: St. Louis Park-based Sela Investments (“Developer”) is proposing a new
development called Parkway Residences in the Triangle neighborhood along 31st Street West
near Glenhurst Avenue South immediately adjacent to its’ recently completed Parkway 25
project. The proposed redevelopment entails the removal of 12 existing buildings and
construction of four new multi-family housing buildings with up to 211 new units. The project
also includes the rehabilitation of three existing apartment buildings that contain 24 units for a
project total of 235 residential units. Of these units, 24 are designated as naturally occurring
affordable housing (NOAH) units which would be affordable to households at or below 50%
Area Median Income (AMI), and 6 units would be affordable to households at or below 60%
AMI.
Financial or budget considerations: The total development cost of the three-phase Parkway
Residences is approximately $92 million. However, due to there being considerable
extraordinary costs associated with preparing the 3-acre project site, the Developer applied to
the EDA for tax increment financing (TIF) assistance. These costs are estimated to exceed $8.8
million and preclude the project from becoming financially feasible. Ehlers, the EDA’s financial
consultant, reviewed the project’s pro forma (including sources and uses, revenue and cost
projections and 15-year operating budget) to determine the appropriate level of assistance the
project would require to achieve a market rate of return. After review, Ehlers determined that
approximately $3.35 million in TIF assistance is warranted to enable the project to proceed.
Such assistance would be provided via one or more pay-as-you-go TIF Notes. Given current
estimates of market value, it is projected that the project’s TIF Note(s) would be paid off in
approximately 15 years (on a net present value basis).
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Prepared by: Greg Hunt, economic development coordinator
Reviewed by: Karen Barton, community development director
Approved by: Tom Harmening, EDA executive director and city manager
Study session meeting of February 24, 2020 (Item No. 2) Page 2
Title: Application for tax increment financing assistance – Parkway Residences
Discussion
Background: The proposed Parkway Residences project includes 15 properties currently
consisting of single-family homes and an assortment of smaller apartment buildings along both
sides of 31st Street West between Inglewood Avenue South and Glenhurst Avenue South in the
Triangle Neighborhood. The buildings range in age from 41 to 113 years old with all but one of
the buildings at least 50 years old. Consulting firm LHB has determined that the buildings
proposed for removal are structurally obsolete and all but one display noticeable material
blight (see TIF District section in this report). The total redevelopment project area is
approximately 2.5 acres and is underutilized from a market value perspective given the new
multi-story buildings to the north and its half-mile proximity to two planned light rail stations.
Site information:
Site area (acres):
2.5 acres
Current use: Surrounding land uses:
Commercial, single-family, duplex, and
multi-family residential uses
Neighborhood: Triangle
North: Multi-family residential and right-
of-way
East: Multi-family residential
South: Multi-family residential
West: single-family and multi-family
residential uses.
Proposed Project: Sela Investment’s proposed redevelopment would be constructed
immediately adjacent to its Parkway 25 project (a 112-unit, mixed-use development with
12,000 square feet of commercial) completed in 2018. The proposed Parkway Residences
would entail the removal of 12 existing buildings and construction of four new multi-family
housing buildings with up to 211 new units. The Developer also plans to rehabilitate three
existing apartment buildings along 31st Street that contain 24 units for a total of 235 new or
renovated residential units. The redevelopment plan segments the project into four building
Study session meeting of February 24, 2020 (Item No. 2) Page 3
Title: Application for tax increment financing assistance – Parkway Residences
sites to be built in phases: west campus, north campus, southwest campus and southeast
campus plus the three apartment buildings to be rehabbed. The development properties are
not all contiguous, thus the project will be built amongst other existing buildings. The four
building sites are described below.
Site 1 (the north campus– see map below) is toward the center of the site and includes six
existing residential buildings north of 31st Street West. The homes will be replaced with a 4-
story, 95-unit apartment building called “Parkway Place” with two-levels of underground
parking. This apartment building is expected to be the first phase of the project. The total area
of this building is 163,000 square feet.
Site 2 (the southeast campus – see map below) consists of two single-family homes that will be
redeveloped as a 6-unit townhome. The townhome will be developed with affordable units as
part of the city’s inclusionary housing policy requirement to provide replacement housing for
the naturally occurring affordable housing (NOAH) existing in the project area that will be
removed as part of the project. It is 7,500 square feet in size.
Site 3 (the southwest campus – see map below) is at the corner of Inglewood Avenue South and
31st Street West. It includes the removal of three existing single-family homes for the
construction of a 4-story, 37-unit apartment building with one level of underground parking.
The southwest campus is proposed to be a later phase of the project.
Site 4 (the west campus – see map below) includes an existing strip center at the southeast
corner of Inglewood Avenue South and County Road 25 that will be replaced with an 11-story
apartment building. The building will consist of eight-floors of residential units (73 units) with
parking and lobby space in the first two floors and the top floor dedicated to amenity space.
There is one-level of underground parking.
The three apartment buildings to be renovated lie on the south side of 31st Street West
(Buildings 5a, 5b, and 5c in the map below). The apartments include a total of 24 units of which
22 are considered naturally occurring affordable housing (NOAH) and will remain as NOAH
designated housing units.
Study session meeting of February 24, 2020 (Item No. 2) Page 4
Title: Application for tax increment financing assistance – Parkway Residences
Sela plans to start construction on Building 1 (the 4-story, 95-unit apartment building), Building
2 (the 6-unit townhome), and the renovations of Buildings 5a, 5b, and 5c (the three existing
apartment buildings) in the spring of 2020. Construction on Building 3 is planned to commence
in the summer of 2021 with construction on Building 4 expected to commence in fall of 2023.
Thus, the proposed redevelopment is split between three phases and anticipated to be
completed over 5 years as shown in the following table.
Phase Development Total
Units
Commence
(approx.)
Complete
(approx.)
I Construction of a 95-unit market rate apt. bldg.,
6-unit affordable apartment, and rehabilitation of
24 NOAH units
125 2020 2021
II Construction of a 37-unit market rate apt. bldg. 37 2021 2022
III Construction of a 73-unit market rate apt. bldg. 73 2023 2024
Study session meeting of February 24, 2020 (Item No. 2) Page 5
Title: Application for tax increment financing assistance – Parkway Residences
It is expected that market demand will support the proposed project given the success of the
adjacent Parkway 25, its proximity to the Lake Street area in Minneapolis and that it will be less
than a-half mile from the planned Southwest Light Rail (SWLRT) W Lake Street Station and a
half mile from the planned SWLRT Beltline Blvd Station.
Affordable Housing: As indicated above, Buildings 5a, 5b, and 5c are existing NOAH buildings
that will be rehabilitated by the Developer. These three buildings contain a total of 24 one and
two-bedroom units and will be designated to remain affordable to households at 50% AMI by a
25-year covenant. During the rehabilitations, the Developer has committed to assist the current
NOAH residents relocate to comparably priced housing of equal or better quality and will
provide a financial contribution to those residents to offset their moving and transition costs.
Additionally, Building 2 (the new 6-unit townhome) will be designated affordable for
households at 60% AMI by a 25-year covenant.
The developer is proposing to comply with the city’s Inclusionary Housing Policy by providing 24
units at 50 percent AMI located in the rehabbed buildings and 6 units at 60% AMI in the new 6-
unit building located at Site 2, for a total of 30 affordable housing units. The affordable unit mix
would be proportionate to the new unit mix in sizes and number of bedrooms.
Green Building Compliance: The new buildings will adhere to the city’s Green Building Policy
and will be designed to Green Communities criteria. Notably, Building 2 (the six-unit affordable
housing building) will be designed as a Demonstration Building showcasing how affordable
housing and environmental sustainability can be combined. Some of the “green” attributes of
this building include:
• A net zero energy performance design, with the goal being that the building is neutral in
energy consumption,
• High performance insulation, and windows,
• Energy efficient lighting and mechanical systems,
• Solar panels on the roof supplying energy to the building.
Other sustainable features in Buildings 1, 3 and 4 include:
• Solar panels on the roof of Building 1 and solar ready roofs on Buildings 3 and 4,
• White Roofs (to curb the urban heat island effect) and partial Green Roofs,
• Insulated underground parking structures,
• Majority of interior parking spaces will have EV charging outlets,
• LED lighting.
Additionally, the development incorporates a surface water management plan that utilizes a
campus wide water infiltration system that will reduce stormwater runoff from both the project
as well as 30% - 40% of stormwater received from neighboring properties.
Lastly, the development is located half a mile from both the Beltline LRT Station and West Lake
Street LRT Station and has frequent bus service via Metro Transit’s #17 Route. This frequent
transit service reduces the need for single-occupancy vehicles and vehicle miles traveled to
reduce vehicle emissions.
Study session meeting of February 24, 2020 (Item No. 2) Page 6
Title: Application for tax increment financing assistance – Parkway Residences
Additional Community Design Attributes: Additional urban design elements that enhance the
neighborhood include:
• Buildings appropriately scaled to blend into the existing neighborhood and feature
underground vs surface parking,
• Extensive landscaping and hardscaping,
• A new mid-block sidewalk with pedestrian amenities including benches, shade trees and
lighting,
• Extensive bike parking, bike storage and repair stations--including bike facilities that
serve the community,
• Pedestrian-scaled and designed to encourage community interactions at the street
level,
• A variety of quality, exterior building materials, large windows and artful lighting.
Job Retention and Creation: Sela expects to create approximately 5 to 7 full-time equivalent
(FTE) positions upon completion of all phases of the proposed project.
The Developer: Sela Group, LLC is a St. Louis Park-based real estate ownership and property
management company. It currently owns and manages approximately 1,500 apartment units in
the Twin Cities area many of which are in St. Louis Park. The company recently completed the
adjacent Parkway 25 luxury mixed use project which is 100% leased. Sela plans to retain the
same design and engineering team that worked on Parkway 25 to work on the Parkway
Residences. That design team has completed several comparable projects in St. Louis Park
including The Shoreham, The Ellipse, The Elmwood and the new Bridgewater Bank Corporate
Center.
Additionally, Mr. Sela owns Sela Roofing and Remodeling which is also headquartered in St.
Louis Park and employs over 130 workers.
Application for Tax Increment Financing Assistance: According to the Developer, the extent of
extraordinary costs to redevelop the subject site adversely impact the project’s pro forma to
the point where it cannot achieve a reasonable market rate of return rendering it financially
infeasible. Consequently, the Developer applied for tax increment financing (TIF) assistance to
mitigate the project’s financial gap. Tax increment financing uses most of the increased future
property taxes generated by a new development to finance certain qualified development costs
incurred by that project (such as those noted below) for a limited period of time to enable the
redevelopment to move forward.
Overview of Proposed Project’s Sources and Uses: The EDA’s financial consultant, Ehlers,
conducted a thorough review of each component of the project based on general industry
standards for construction, land, and project costs; rents; operating expenses; fees;
underwriting and financing criteria; project cash flow, and investor rate of return (ROR). Based
on this detailed analysis, it collaborated with staff to determine to what extent the proposed
project exhibits a financial gap justifying the use of TIF.
The estimated total development cost (TDC) to construct the proposed multi-phase housing
development is approximately $92 million. The project’s anticipated sources and uses are
summarized in the tables below along with their respective percentage of the total
Study session meeting of February 24, 2020 (Item No. 2) Page 7
Title: Application for tax increment financing assistance – Parkway Residences
development cost. Please note: The tables below exclude the rehabilitation of the 24 NOAH
units since the per unit costs range considerably.
Project Financing Sources: Financing sources for the new construction of the proposed project
are as follows:
SOURCES AMOUNT ($) % of TDC
First Mortgage Debt $68,362,442 75%
Developer Equity $20,015,685 22%
City of St. Louis Park TIF (proposed) $3,350,000 3%
TOTAL Project Sources $91,728,127 100%
Project Uses: Uses for the new construction of the proposed project are as follows:
USES AMOUNT ($) Per Unit
Land $5,779,998 $27,393
Construction Costs $76,243,396 $361,343
Contractor Fee $2,333,032 $11,057
Professional Services $4,433,400 $21,011
Financing Costs $2,136,191 $10,124
Cash Accounts/Escrows/Reserves $702,110 $3,328
TOTAL Project Costs $91,628,127 $434,256
Land Cost: Sela Investments has purchased all 12 parcels that constitute the subject
redevelopment site. The land cost for the subject property is $5.8 million which equals
approximately $27,000 per unit. According to Ehlers, this per square foot cost is within the
typical market range.
Construction/Extraordinary Costs*: The construction costs were found to be very high for the
multifamily housing developments due to the lower density and higher quality of standards
placed on the new construction by the Developer. Whereas, the site preparation costs are on
the higher end of the spectrum due to considerable soil correction, excavation, shoring and
grading work, stormwater management for the neighborhood, as well as underground parking.
It is estimated that the development will incur about $7.3 million in extraordinary site
preparation costs* as shown below.
Affordability & Extraordinary Cost Estimates AMOUNT ($)
Building demolition and disposal $190,000
Soil mitigation and earthwork $1,668,022
Radon Mitigation $166,578
Earth Retention, excavation, shoring and site grading $711,200
Stormwater Management $500,000
Structured parking $4,064,824
TOTAL $7,300,624
Study session meeting of February 24, 2020 (Item No. 2) Page 8
Title: Application for tax increment financing assistance – Parkway Residences
*Extraordinary costs are expenses encountered over and above those which a developer would
typically expect to incur in a suburban development (e.g. asbestos removal, building
demolition, contaminated soil removal and disposal, storage tank removal and disposal,
excavating, shoring, utility replacement, specialized stormwater management, etc.). Under the
MN TIF statute these types of costs are eligible for reimbursement through tax increment
originating from officially established Redevelopment TIF Districts.
Developer Fee: The Developer has chosen to forego taking a Development Fee for the project.
Total Development Cost (TDC): The TDC for the new construction is nearly $92 million or
approximately $434,000 per unit which is very high for industry standards.
Project Cash Flow Projections
1. Rental Rates: The projected rental rates ranged from $1,613/unit for a studio to
$2,777/unit for a 2-bedroom apartment. Such rates are on the higher end of the market
ranges for the area.
2. Financing Structure: The Developer anticipates using a conventional 30-year mortgage
at a 4% interest rate and private equity. The financing terms are typical and reasonable
for the product type.
3. Vacancy Rate: The proforma factors a 5% vacancy rate which is standard and reasonable
for residential building.
4. Returns/Cash Flow: Based on the anticipated development costs, financing terms, and
potential rental income, the project’s estimated cash-on-cost does not unduly enrich the
Developer during the term of TIF assistance. Moreover, once the TIF assistance
concludes, the Developer maintains a reasonable cash-on-cost of 6% which is within the
expectations for industry standards.
Proposed Level of Assistance: Due to the nature and timing of the proposed project, the
recommended level of assistance was determined by analyzing the affordability impact over 25
years and forecasting the return on investment to ensure the Developer is not unduly enriched
during the term of TIF assistance. According to Ehlers, the industry standard for cash-on-cost
returns for similar projects is 6 to 6.25 percent in order to attract the necessary investment and
underwrite the project. Thus, the proposed project is not financially viable but/for the provision
of tax increment assistance over an anticipated 15-year term.
In order for the proposed project to attain a 6% cash-on-cost return, it is estimated that a total
of $3.35 million in tax increment assistance would be necessary. Such assistance would be
provided via one or more TIF Notes (to be further determined). This level of assistance would
offset enough of the extraordinary site costs described above and allow the proposed project to
achieve a rate of return sufficient, from the Developer’s perspective, to proceed. Statutorily,
the proposed tax increment assistance could only be applied toward the project’s qualified
costs and would begin to be disbursed only after verification that the qualified costs had been
incurred.
Study session meeting of February 24, 2020 (Item No. 2) Page 9
Title: Application for tax increment financing assistance – Parkway Residences
Consistent with previous EDA redevelopment agreements, a "look back" provision would be
incorporated into the proposed redevelopment contract with the Developer. Per the contract,
the Developer would be required to submit final project costs and reports detailing the actual
financial performance of the project. The look back provision ensures that if the project’s total
development costs are lower than the estimates provided, the EDA shares economically in the
success of the project by reducing the amount of TIF assistance provided.
TIF Note: It will take approximately five years to construct all phases of the Parkway Residences
project. It is anticipated that the first increment would be paid in 2022. Given current estimates
of market value, it is projected that the TIF Note(s), totaling $3.35 million would be paid off in
approximately 15 years (on a net present value basis). The Note(s) would likely terminate with
final payment on February 1, 2037. The proposed project would be financed on a "pay-as-you-
go" basis, which is the preferred financing method under the city's TIF Policy. The Note(s) would
bear interest at the lesser of 4%, or the Developer’s actual rate of financing. The size of the TIF
Notes would be based upon no inflationary value in the project (as with all projects). This is
more conservative estimating and thus it is anticipated that the pay-as-you-go notes would be
paid off earlier than estimated. As with most EDA redevelopment contracts, the Developer
would be required to execute a Minimum Assessment Agreement for the value utilized for
projecting the amount of TIF assistance available.
TIF District: The entire redevelopment site is within the City’s Redevelopment Project Area
which is the portion of the city where the EDA may statutorily establish TIF districts. In order to
provide the Developer with the proposed tax increment, a new Redevelopment TIF District
would need to be established. In this case, it was determined that the entirety of the tax
increment could be derived from the Building 1 site.
Consulting firm LHB conducted a TIF district feasibility analysis to determine if Site 1 qualified as
a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10. After
inspecting the 6 subject properties, LHB evaluated each against current statutory criteria and
concluded in its report that the proposed TIF district qualifies as a Redevelopment District
based on the following findings:
• The proposed TIF District has a coverage calculation of 100 percent which exceeds the 70
percent requirement.
• 100 percent of the buildings are structurally substandard, which exceeds the 50 percent
requirement.
• The substandard buildings are reasonably distributed throughout the geographic area of
the proposed TIF District.
The proposed Redevelopment TIF District would include the following six parcels:
• 4000 W. 31st Street
• 4008 w. 31ST Street
• 4012 W. 31st Street
• 4020 W. 31st Street
• 4100 W. 31st Street
• 4108 W. s1st Street
Study session meeting of February 24, 2020 (Item No. 2) Page 10
Title: Application for tax increment financing assistance – Parkway Residences
Such a TIF district would allow for up to 26 years of tax increment by state statute.
Property Value and Taxes: The current combined assessed market value of the 6 parcels is just
over $3 million. This is the proposed TIF District’s Base Value. The estimated market value of
the development contained within the TIF district (Site 1) upon completion (for TIF estimation
purposes) is approximately $25,650,000. Most of this value would be captured as tax increment
and used to make payments on the various TIF Note(s) until they are paid off and the TIF district
is terminated. Upon completion and occupancy of Site 1, it is estimated to annually generate
nearly $432,000 in total property taxes. The city, county and school district would continue to
receive the property taxes collected on the subject site’s Base Value.
Building Sites 2, 3, 4 and 5 will not be included in the proposed TIF District and therefore will
make an immediate positive impact on the tax base upon their completion. These
developments will have a combined estimated market value of $33,310,000, and annually
generate an estimated $549,000 in total property taxes.
Once the TIF Note(s) are retired and the TIF district is decertified, the additional property taxes
generated by the project would accrue to the local taxing jurisdictions. Based on current
estimates, the proposed Parkway Residences project will generate approximately $980,000 in
total property taxes annually.
It should be noted that the project could achieve a higher total market value once it is assessed
for tax purposes. This was a conservative value utilized only for estimating the amount of TIF
the project would generate. Should the value of the project at the time of completion be higher
than the estimated amount, the principal amount of the TIF Note would be paid back sooner
than the projected 15 years and local taxing jurisdictions would receive the benefit of having
the full value for tax purposes sooner than anticipated.
Conformance and Analysis under the City’s TIF Policy: The proposed Parkway Residences
project meets the following Minimum Qualifications as outlined in the City’s TIF Policy:
• Promotes neighborhood stabilization and revitalization by the removal of blight and the
upgrading of existing housing stock.
• Provides a balanced and sustainable housing stock to meet diverse needs both today
and in the future.
• The project is consistent with the City’s Comprehensive Plan and Zoning Ordinances.
• The Developer has demonstrated that the proposed project is not financially feasible
“but-for” the use of tax increment financing.
• The Developer has a proven track record of successful real estate development
performance and has demonstrated the capability to fully complete the multi-phase
project as proposed.
The proposed project meets the following “Desired Qualifications” as outlined in the TIF Policy:
• Creates a substantially higher ratio of property taxes paid before and after
redevelopment and provides a significant increase in taxable market value.
Study session meeting of February 24, 2020 (Item No. 2) Page 11
Title: Application for tax increment financing assistance – Parkway Residences
• Facilitates new construction on a site which would not likely be redeveloped to its
optimal use without such assistance.
• Redevelops underutilized property.
• Creates four high quality buildings (e.g. sound architectural design, quality construction
and materials) with public features and rehabilitates three existing residential buildings.
• Creates new employment opportunities.
In addition to the above, the proposed project would have the following additional benefits:
• Intensifies the subject site and makes optimal use of the property
• creates a cohesive and attractive multi-family development that is human-scale,
walkable and connects the 31st Street West neighborhood.
• Complements, integrates with, and invigorates the surrounding neighborhood.
• Helps stabilize the commercial businesses in the area by increasing the potential
customer base.
• Incorporates numerous Green Building design and features.
• Lies within proximity to two planned light rail stations.
• Incorporates Livable Communities and Transit Oriented Design principles.
• Provides convenient pedestrian and bicycle access to two planned SWLRT transit
stations located within a half mile.
Grading under Project Report Card: Sela Investment’s TIF application for its proposed multi-
family residential development was graded according to the Project Report Card provided
within the City’s TIF Policy. The application was graded as follows:
• Promotes housing for large families.
No 3-bedroom or larger units are proposed to be included in the project’s unit mix.
Since 0% of the units will accommodate large families a grade of “F” was provided.
• Provides economic integration of rental or ownership projects.
The proposed project includes the preservation and rehabilitation of 24 NOAH units at
50% AMI and construction of 6 new affordable housing units at 60% AMI; this translated
to a grade of “B” on the scale.
• Level of affordable housing provided
The proposed project includes units at both 50% and 60 AMI; this garnered a grade of
“B” on the scale.
• Ratio of soft costs to Total Project Costs.
Soft costs of the total project were estimated at approximately $6.5 million or 7% of the
total development costs, which corresponded to a grade of “A” on the scale.
• Ratio of private to public (TIF) financing.
$88.3 million in private development costs to $3.35 million in TIF equals a $26.38 private
/ $1 public ratio which garnered an “A” on the scale.
Study session meeting of February 24, 2020 (Item No. 2) Page 12
Title: Application for tax increment financing assistance – Parkway Residences
• The value of the site before and after redevelopment
The total current taxable market value of the entire project area is just over $7.2 million.
The projected market value upon redevelopment is: $58.9 million. This is a ratio of $1:
$8.17 which represented an “A” on the scale.
The proposed project received bonus points for:
• assembling all the properties required for the redevelopment,
• redeveloping blighted/environmentally challenging property,
• incorporating New Urbanism principles,
• incorporating energy efficient components,
• optimizing use of the property,
• incorporating livable communities design principles,
• likely stimulating further investment in the surrounding neighborhood,
• being located in proximity to one of the city’s Priority Redevelopment Study Areas or
light rail,
• having a significant positive community impact.
Upon calculation of all applicable factors and bonus points, the Parkway Residences project
received a final grade of “B” according to the Project Report Card within the TIF Policy.
Conformance with the City’s Business Subsidy Policy: Any TIF assistance provided to Sela
Investments for the proposed redevelopment would be exempt from state business subsidy
requirements as it relates to housing, pollution control/abatement, and redevelopment
(Section 116J.993, Subdivision 3). Therefore, no public subsidy hearing will be required;
however, the EDA will still be subject a modified reporting requirements.
Summary and Recommendation: The estimated total cost to construct the Parkway Residences
is approximately $92 million. Upon completion, the project’s total taxable market value is
estimated at $58.9 million. Based upon its analysis of the project’s proforma, Ehlers determined
that the proposed multi-family housing development has a verified financial gap and is not
economically feasible but/for the provision of tax increment financing. To offset this gap, it is
proposed that the EDA consider reimbursing the Developer up to $3.35 million in pay-as-you-go
tax increment generated by Site 1 of the project for a term of approximately 15 years.
Providing tax increment financing assistance to the proposed redevelopment makes it possible
to construct four high quality multi-family apartment buildings and rehabilitate three existing
apartment buildings consistent with the Comprehensive Plan, to bring the subject properties to
optimal market value, and provide the community with additional market rate and affordable
housing units with numerous energy efficient features. The proposed amount of TIF assistance
is in-line with other developments the EDA has previously assisted. As a reminder, the tax
increment would be generated by Site 1 exclusively and would only be provided to the
Developer once construction was satisfactorily completed and the Developer supplies
statements verifying that it had incurred the specified qualified costs. The EDA would be
obligated to provide assistance for the project only to the extent Site 1 generates enough tax
increment to make the bi-annual payments.
Study session meeting of February 24, 2020 (Item No. 2) Page 13
Title: Application for tax increment financing assistance – Parkway Residences
Sela Investment’s proposed Parkway Residences development meets the city’s objectives for
the provision of Tax Increment Financing as specified in the city’s TIF Policy. As noted above,
the project meets all the Minimum and Desired Qualifications for providing TIF assistance and
received a final grade of “B” according to the Project Report Card within the TIF Policy.
Furthermore, it has been demonstrated that the proposed project is not financially feasible
but/for the provision of tax increment financing. Given these findings, staff supports
reimbursing the Developer for qualified site preparation costs up to a total of $3.35 million in
pay-as-you-go tax increment generated by Site 1 of the project so as to enable the proposed
redevelopment to proceed.
Next steps: As with all such TIF applications, it is at the EDA’s discretion as to whether it wishes
to provide the proposed project financial assistance at the recommended level. Provided the
EDA supports providing financial assistance to the Parkway Residences project as proposed, the
EDA will be asked to begin the formal process of establishing the proposed Parkway Residences
TIF District; the vehicle through which the assistance would be provided. The first step of which
is to call for a public hearing date. A resolution calling for a public hearing for the establishment
of the proposed TIF district is tentatively scheduled for March16, 2020. Subsequently the next
steps in the TIF approval process would be as follows:
1. Negotiation of business terms for the provision of financial assistance
2. Review of proposed business terms of Redevelopment Contract
3. Approval of TIF Plan by Planning Commission
4. Approval of Redevelopment Contract & TIF District Public Hearing & Plan approval –
EDA and City Council
Meeting: Study session
Meeting date: February 24, 2020
Written report: 3
Executive summary
Title: Annual review of city financial management policies
Recommended action: Staff is providing this report in advance of requesting council approval
of updates to the city’s financial management policies. Please inform us of any questions you
might have.
Policy consideration: Does the City Council desire to update the financial management policies
to current best practices, City Charter and State Statutes?
Summary: The City financial management policies are one of the most important aspects of
long-term financial planning and continued financial management planning. Financial
management policies play a vital role in the cities credit rating. We continually get the highest
management scores for our comprehensive financial management policies from Standard and
Poor’s. Department Directors, our Municipal Advisor (Ehlers), City Auditor, and the City
attorney have reviewed the updated policies.
With this update only a few recommendations are summarized in the discussion section of this
report.
Later this year, we are implementing an electronic accounts payable system which will
significantly reduce and, in many cases, eliminate paper in addition to many process
improvements. Upon that implementation, staff may come back later this summer for approval
of the adjustments in the purchasing policy section if necessary.
Here is a summary of the recommended polices from the Government Financial Officers
Association (GFOA).
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Updated financial management polices
Prepared by: Tim Simon, chief financial officer
Approved by: Tom Harmening, city manager
Relative Importance of Financial Policy Types (GFOA, financial policies pg 29)
Essential policies Highly advisable policies
Fund balance and reserves Accounting and financial reporting
Operating budget Revenues
Capital budgeting and planning Internal Controls
Debt management Expenditures
Long-range financial planning Purchasing
Investment Risk Management
Economic Development
Study session meeting of February 24, 2020 (Item No. 3) Page 2
Title: Annual review of city financial management policies
Discussion
Background: Similar to a “Personnel Policy” Manual, having all our financial policies included in
a single source document allows for ease of reference and updating. All changes are updates
from best practices/state statutes/city charter that work into the city’s operating practices. Our
Municipal Advisor, Investment Advisor, City Attorney and staff have reviewed the financial
management policies. Staff at least annually reviews our financial management policies.
The changes to the policy are noted in red and are contained in pages 20-28.
Summary of proposed financial management policy changes:
Capital Improvements - Capitalization thresholds are for financial reporting purposes; staff
recommends moving the “other assets” from $5,000 to $10,000. We have very few items
classified here so increasing the limit will not materially change anything. For accounting
purposes, the city uses the modified approach for street and trail system capital assets, so just
adding the related language in our policy.
Accounting, Auditing, and Financial Reporting - The audit covers all funds, so “and account
groups” can be eliminated as not applicable.
Purchasing - Added clarification around price quotes and how long to maintain on file. Conflict
of interest section was added to reference the city charter related sections. Also included per
best practice that disciplinary action may be necessary.
Staff recently completed a federal grant review and a few recommended changes to our
policies have been incorporated to match federal rules and regulations under Federal
purchases.
Next Steps: Council action at the next regular meeting.
Financial Management Policies
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 3
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Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 4
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Purpose
The City of Saint Louis Park is responsible to its citizens to manage its resources wisely and
adopting financial policies is an important step to ensure that resources are managed
responsibly. The policies provide the framework for the overall fiscal management of the city
and guide the decision-making process.
Most of the policies represent long standing principles, traditions and practices which have
guided the city in the past and have helped maintain financial stability over the past years.
These financial policies will be reviewed periodically to determine if changes are necessary.
Objectives
Providing sound principles to guide the decisions of the City Council and management.
To provide both short-term and long-term financial stability to city government by
ensuring adequate funding for providing and protecting infrastructure needed by the
community today and for years to come.
Protecting and enhancing the city’s credit rating and prevent default on any municipal
obligations.
To protect the City Council’s policy-making ability by ensuring that important policy
decisions are not constrained by financial problems or emergencies.
To create a document that staff and Councilmembers can refer to during financial
planning, budget preparation and other financial management issues.
Revenue and Expenditure
The city will provide long-term financial stability through sound short and long term
financial planning.
The city will estimate its annual revenues and expenditures in a conservative manner so
as to reduce exposure to unforeseen circumstances.
The city will project revenues and expenditures for the next ten years and will update
these projections each budget process.
Whenever user charges and fees are determined to be appropriate and the direct
benefits are identifiable, the city will establish user charges and fees at a level related to
the cost of providing the service (operating, direct, indirect, and capital). Fees will be
reviewed annually.
To the extent feasible, one-time revenues will be applied toward one-time expenditures
or placed into reserves.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 5
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Cash Management
It is the policy of the city to pool cash balances from all funds to maximize investment
earnings. Exceptions include legal and specific practical requirements that demand
segregation of funds.
Funds received are to be deposited into an interest-bearing account with the city’s
currently designated official depository by the next business day.
Cash on hand is to be kept to the minimum required to meet daily operational needs.
Investments
It is the policy of the City of St. Louis Park to establish guidelines for the investment of all public
funds. This policy is designed to ensure the prudent management of public funds, the availability
of operating and capital funds when needed and providing the highest investment return with
maximum security and minimum risk.
I. SCOPE
This policy applies to all financial assets of the City of St. Louis Park. While separate
investment funds are created to accommodate reporting on certain bonded
indebtedness, individual investments are purchased using a pooled approach for
efficiency and maximum investment opportunity. The City’s funds are defined in the
City’s Comprehensive Annual Financial Report and include:
• General Fund;
• Special Revenue Funds;
• Debt Service Funds;
• Capital Project Funds;
• Proprietary Funds;
• Internal Service Funds.
II. OBJECTIVES
The primary objectives in priority order of the City’s investment activities will be:
A. Safety of Principal
Safety of principal is the foremost objective of the investment program.
Investments shall be undertaken in a manner that seeks to ensure preservation of
capital in the overall portfolio. The objective will be to mitigate credit risk by
purchasing only highly rated securities with adequate collateral and interest rate
risk by matching maturities to cash flow needs.
B. Liquidity
The investment portfolio will remain sufficiently liquid to enable the City to meet
all operating and capital requirements that might reasonably be anticipated. A
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 6
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portion of the portfolio may be placed in money market mutual funds or local
government investment pools which offer same-day liquidity.
C. Yield
The investment portfolio shall be designed with the objective of attaining a market
rate of return throughout budgetary and economic cycles, taking into account
investment risk constraints and liquidity needs. Yield is of secondary importance
compared to the safety and liquidity objectives described above.
III. STANDARDS OF CARE
The prudent person standard shall be applied to the management of the portfolio. This
standard states: “Investments shall be made with judgment and care, under
circumstances then prevailing, which persons of prudence, discretion, and intelligence
exercise in the management of their own affairs, not for speculation, but for investment,
considering the probable safety of their capital as well as the expected income to be
derived.”
Investment officers acting in accordance with written procedures and this investment
policy and exercising due diligence shall be relieved of personal responsibility for an
individual security’s credit risk or market price changes, provided deviations from
expectations are reported in a timely fashion and the liquidity and the sale of securities
are carried out in accordance with the terms of this policy.
IV. INVESTMENT AUTHORIZATION
The City Treasurer is designated as the Investment Officer of the City and is responsible
for investment management decisions and activities. The Treasurer shall carryout
established written procedures and internal controls for the operation of the investment
program consistent with this investment policy. The Treasurer is authorized, as allowed
under the State Statute, to designate depositories and broker-dealers for City Funds.
V. CONFLICT OF INTEREST
Any city official involved in the investment process shall refrain from personal business
activity that could conflict with proper execution of the investment program or which
could impair his/her ability to make impartial investment decisions. Employees shall
disclose any material interests in financial institutions with which they conduct business.
Employees and officers shall refrain from undertaking personal investment transactions
with the same individual with which business is conducted on behalf of the City.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 7
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VI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer will maintain a list of financial institutions authorized to provide
investment services to the City. All broker/dealers who desire to become qualified
bidders for investment transactions must supply the Treasurer with:
• Audited financial statements and proof of National Association of Security Dealers
(NASD) certification;
• Proof of Minnesota Registration Broker Notification and Certification form required
by Minnesota Statutes 118A prior to any investment transactions with the City. The
Broker Notification must be updated annually.
• The Official Broker/Dealer Questionnaire must be on file for each broker the City is
currently doing business with.
• Certification of having read the City’s investment policy and agreement to conduct
investment transactions in accordance with the policy and objectives, as well as state
statutes.
• Written agreement to disclose potential conflicts of interest or risk to public funds
that might arise out of business transactions between the firm and the City.
VII. AUTHORIZED INVESTMENTS
The City will be permitted by this policy to invest funds in those security types that are
permitted by Minnesota Statue 118A. Further investment parameters can be found in
section X.
VIII. COLLATERALIZATION
Full collateralization will be required on non-negotiable certificates of deposit. All
deposits will be insured or collateralized in accordance with Minnesota Statutes Chapter
118A.
IX. SAFEKEEPING
All trades of marketable securities will be executed (cleared and settled) on a delivery vs.
payment (DVP) basis to ensure that securities are deposited in the City of St. Louis Park’s
safekeeping institution prior to the release of funds.
If investments are held in safekeeping at a broker/dealer, they shall be kept at the
broker/dealer in the City’s name. Certificates will be held at the financial institution in
the City’s name. All securities should be a risk category one according to the Government
Accounting Standard No.3
Investments may be held in safekeeping with:
1. Any Federal Reserve Bank;
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 8
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2. Any bank authorized under the laws of the United States or any state to exercise
corporate trust powers, including, but not limited to, the bank from which the
investment is purchased;
3. A primary reporting dealer in United States government securities to the Federal
Reserve Bank of New York; or
4. A securities broker-dealer or an affiliate of it, that is registered as a broker-dealer
under chapter 80A or is exempt from the registration requirements; is registered
by the securities and exchange commission; and maintains insurance through
the Security Investor Protection Corporation (SIPC) or excess insurance coverage
in an amount equal to or greater than the value of the securities held.
X. INVESTMENT PARAMETERS
The City’s investments shall be diversified as to specific maturity, issuer and institution in
order to minimize the risk to the portfolio. Investments should be purchased to match
expected cash flow needs, minimizing the market risk associated with the early sale of the
investments.
The following diversification parameters have been established and will be reviewed
periodically by the City Treasurer for all funds:
Sector
Sector
Maximum
(%)
Per Issuer
Maximum
(%)
Minimum Ratings Requirement1 Maximum
Maturity
U.S. Treasury
100%
100%
N/A
7 Years
(7 year avg.
life
for GNMA)
GNMA 40%
Other U.S. Government
Guaranteed (e.g. AID, GTC) 10%
Federal Agency/GSE:
FNMA, FHLMC, FHLB, FFCB 75%
40%4
N/A 7 Years Federal Agency/GSE
other than those above 5%
Municipals (Revenue)
25% 5%
Highest ST or Two Highest LT Rating Categories
(SP-1/MIG 1, AA-/Aa3, or equivalent) 7 Years Municipals (General
Obligations)
Highest ST or Three Highest LT Rating Categories
(SP-1/MIG 1, A-/A3, or equivalent)
Collateralized Bank
Deposits 50% None, if fully
collateralized None, if fully collateralized. 7 Years
FDIC-Insured Bank Deposits 100% FDIC limit
for insurance None, if fully FDIC-insured. 7 Years
Commercial Paper (CP) 25%2 5%3 Highest ST Rating Category by two NRSROs
(A-1/P-1, or equivalent) 270 Days
Bankers Acceptances (BA) 15% 5%3 Highest ST Rating Category by two NRSROs
(A-1/P-1, or equivalent) 270 Days
Intergovernmental Pools
(LGIPs) 100% 100% Highest Fund Quality and Volatility Rating
Categories by all NRSROs, if rated N/A
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 9
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(AAAm/AAAf, S1, or equivalent)
Notes:
1 Rating by at least one SEC-registered Nationally Recognized Statistical Rating Organization (“NRSRO”), unless otherwise noted.
ST=Short-term; LT=Long-term.
2 Maximum allocation to all corporate and bank credit instruments is 25% combined.
3 Maximum across all non-government permitted investment sectors (excluding Treasuries, U.S. Federal Agencies and Agency
MBS) is 5% combined per issuer.
4 Maximum exposure to any one Federal agency, including the combined holdings of Agency debt is 40%.
XI. REPORTING AND REVIEW
A. The investment portfolio will be managed in accordance with the parameters
outlined in this policy. The portfolio will be designed with the objective of
obtaining a rate of return throughout budgeting and economic cycles,
commensurate with the investment risk constraints and cash flow needs.
B. The City’s investment policy shall be adopted by resolution by the City Council.
The City’s investments shall be reported to the City Council quarterly. The
information reported to the City Council should include:
1. A listing of individual securities held at end of reporting period.
2. A listing of investments by maturity date.
3. The percentage of the total portfolio in each type of investment.
4. Rate of return for quarter.
5. Market to market analysis.
C. Interest earned on investments shall be allocated to various funds based on each
fund’s average monthly cash balance.
XII. STATUTORY AUTHORITY
Specific investment parameters for the investment of public funds by the City are found
in Minnesota Statutes Chapters 118A.
XIII. POLICY CONSIDERATIONS
A. Interest Allocation
The general fund shall be allocated a management fee equal to three percent of
the total net investment earnings of the investment pool, excluding investments
related to the Economic Development Authority.
B. Amendments
Any changes must be approved by City Council.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 10
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Fund Balance
The purpose of the fund balance policies is to establish appropriate fund balance levels for each
fund that is primarily supported by property tax revenues or user fees. These policies will ensure
that adequate resources are available to meet cash flow needs for carrying out the regular
operations of the City, as well as to meet the fund balance requirements identified in the City’s
Long Range financial Management Plan.
The City Council authorizes the Chief Financial Officer and/or City Manager to assign fund balance
that reflects the City’s intended use of those funds. When both restricted and unrestricted
resources are available for use, it is the City’s policy to first use restricted resources, and then use
unrestricted resources as they are needed. When unrestricted resources are available for use, it
is the City’s policy to use resources in the following order; 1) committed 2) assigned 3)
unassigned. These fund balance classifications apply only to Governmental Funds, not Enterprise
Funds.
A. Classification of Fund Balance/Procedures
1. Nonspendable
Amounts that cannot be spent because they are not in a spendable form or are
legally or contractually required to be maintained intact. Examples are inventory
or prepaid items.
2. Restricted
Amounts subject to externally enforceable legal restrictions. Examples include
grants, tax increment and bond proceeds.
3. Unrestricted
The total of committed fund balance, assigned fund balance, and unassigned fund
balance:
Committed fund balance – amounts that can be used only for the specific
purposes determined by a formal action of the government’s highest level of
decision-making authority. Commitments may be changed or lifted only by the
government taking the same formal action that imposed the constraint
originally.
Assigned fund balance – amounts intended to be used for a specific purpose;
intent can be expressed by the government body or by an official or body to
which the governing body delegates the authority.
Unassigned fund balance – residual amounts that are available for any
purpose in the general fund. The General fund should be the only fund that
reports a positive unassigned fund balance amount. This classification is also
used to account for deficit fund balances in other governmental funds.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 11
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A. General Fund
The city will maintain an unassigned General fund balance of not less than 40-50%
of subsequent year’s budgeted expenditures with a target of 45%; however, this
need could fluctuate with each year’s budget objectives.
Annual proposed General fund budgets shall include this benchmark policy.
Council shall review the amounts in fund balance in conjunction with the annual
budget approval, and make adjustments as necessary to meet expected cash-flow
needs.
In the event the unassigned General fund balance will be calculated to be less than
the minimum requirement at the completion of any fiscal year, the city shall plan
to adjust budget resources in the subsequent fiscal years to bring the fund balance
into compliance with this policy.
The City Council may consider appropriating (for authorized purposes) year-end
fund balance in excess of the policy level or increasing the minimum fund balance.
An example of preferred use of excess fund balance would be for one-time
expenditures, such as:
1. to fund one-time capital items
2. to fund a one-time (non-recurring) expenditure or grant match
opportunity
3. to provide catch-up funding or long-term obligations not previously
recognized
4. to fund a one-time unplanned revenue shortfall
5. to fund an unplanned expenditure due to an emergency or disaster
6. to retire existing debt
7. to fund policy shifts by other governmental entities having a
negative impact on the city
Appropriation from the minimum fund balance shall require the approval of the
City Council and shall be used only for non-recurring expenditures, unforeseen
emergencies or immediate capital needs that cannot be accommodated through
current year savings. Replenishment recommendations will accompany the
decision to utilize fund balance.
At the discretion of the City Council, fund balance may be committed for specific
purposes by resolution designating the specific use of fund balance and the
amount. The resolution would need to be approved no later than the close of the
reporting period and will remain binding unless removed in the same manner.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 12
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B. Enterprise Funds
These funds were established to account for the operation of Water, Sewer, Solid Waste,
and Storm Water operations which are designed to be self-supporting from user charges.
1) Water Utility
This fund is used to account for the provision of water services to the customers of
the City related to administration, operations, maintenance, billing and collection.
This fund is financed predominantly through user charges.
The City will strive to maintain an unrestricted net position in the Water Utility Fund
in the range of 35-50% of the subsequent year’s budgeted expenditures. Since a
significant source of revenue in the Water Utility Fund comes from user charges,
maintaining an unrestricted net position that is equal to at least 35-50% of the
subsequent year’s expenditures ensures that sufficient resources are available to fund
basic City functions between receipts of user charges. In addition, due to the mature
water infrastructure within the City, a higher percentage of fund balance is prudent
to address any potential issues.
2) Sewer Utility
This fund is used to account for the provisions of sewer services to the customers of
the City. All activities necessary to provide this utility to the customers are
administration, operations, maintenance, billing and collection. This fund is financed
predominantly through user charges.
The City will strive to maintain an unrestricted net position in the Sewer Utility Fund
in the range of 35-50% of the subsequent year’s budgeted expenditures. Since a
significant source of revenue in the Sewer Utility Fund comes from user charges,
maintaining an unrestricted net position that is equal to at least 35-50% of the
subsequent year’s expenditures ensures that sufficient resources are available to fund
basic City functions between receipts of user charges. In addition, due to the age of
sewer infrastructure within the City, a higher percentage of fund balance is prudent
to address any potential issues.
3) Solid Waste Utility
This fund is used to account for the provisions of solid waste services to the customers
of the City related to collection, disposal and recycling of solid waste. This fund is
financed predominantly through user charges and investment income.
The City will strive to maintain an unrestricted net position in the Solid Waste Utility
Fund in the range of 25-40% of the subsequent year’s budgeted expenditures. Due to
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 13
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less volatility, an unrestricted net position percentage is justifiable. This will ensure
that sufficient resources are available to fund basic Solid Waste activities.
4) Storm Water Utility
This fund is used to account for the provision of storm water to the customers of the
City related to administration, operations, maintenance, billing and collection. This
fund is financed predominantly through user charges and investment income.
The City will strive to maintain an unrestricted net position in the Storm Water Utility
Fund in the range of 25-40% of the subsequent year’s budgeted expenditures. Due to
less volatility, an unrestricted net position percentage is justifiable. This will ensure
that sufficient resources are available to fund basic Storm Water activities.
C. Special Revenue Funds
The city will maintain reserves in the Special Revenue funds at levels sufficient to
provide working capital for current expenditure needs plus an amount that is
estimated to be needed to meet legal restrictions, requirements by external funding
sources and/or pay for future capital projects. Future capital projects must be
identified and quantified in a written plan for the fund, which shall be included in the
city’s annual CIP and in congruence with the long range financial management plan.
D. Debt Service Funds
The city will maintain reserves in the Debt Service funds at levels sufficient to provide
working capital for current debt service expenditure needs plus an amount that is
estimated to be needed to meet legal restrictions and requirements by external
funding sources.
E. Capital Project Funds
The city will maintain reserves in the Capital Project funds at levels sufficient to
provide working capital for current expenditure needs plus an amount that is
estimated to be needed to meet legal restrictions, requirements by external funding
sources and/or pay for future capital projects. Future capital projects must be
identified and quantified in a written finance plan for the fund, which shall be included
in the city’s annual CIP and in congruence with the long range financial management
plan.
Study session meeting of February 24, 2020 (Item No. 3)
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Debt
It is the policy of the City of St. Louis Park to establish guidelines for the use of debt in financing
capital acquisitions, repayment of debt, and management of the overall level of debt in the city.
A. Credit Ratings: The City of St. Louis Park seeks to maintain the highest possible credit ratings
for all categories of short- and long-term General Obligation debt that can be achieved
without compromising delivery of basic City services and achievement of adopted City policy
objectives.
The City recognizes that external economic, natural, or other events may from time to time
affect the creditworthiness of its debt. Nevertheless, the Mayor and City Council are
committed to ensuring that actions within their control are prudent and consistent with the
highest standards of public financial management, and supportive of the creditworthiness
objectives defined herein.
B. Financial Disclosure: The City is committed to full and complete financial disclosure, and to
cooperating fully with rating agencies, institutional and individual investors, City
departments and agencies, other levels of government, and the general public to share clear,
comprehensible, and accurate financial information. The City is committed to meeting
disclosure requirements on a timely and comprehensive basis.
Official statements accompanying debt issues, Comprehensive Annual Financial Reports,
and continuing disclosure statements will meet (at a minimum) the standards articulated
by the Municipal Standards Rulemaking Board (MSRB), the Government Accounting
Standards Board (GASB), the National Federation of Municipal Analysts, the Securities and
Exchange Commission (SEC), and Generally Accepted Accounting Principles (GAAP). The
Finance Department shall be responsible for ongoing disclosure to established national
information repositories (NRMSRs) and for maintaining compliance with disclosure
standards promulgated by state and national regulatory bodies.
C. Debt Capacity: The City will keep outstanding debt within the limits prescribed by State
statute and at levels consistent with its creditworthiness objectives.
D. Purposes and Uses of Debt
The City will normally rely on existing funds, project revenues, and grants from other
governments to finance capital projects such as major maintenance, equipment
acquisition, and small development projects. Debt may be used for capital projects only
when a project generates revenues over time that are used to retire the debt, when debt is
an appropriate means to achieve a fair allocation of costs between current and future
beneficiaries.
a. Asset Life: The City will consider the use of debt for the acquisition,
development, replacement, maintenance, or expansion of an asset only if it has a
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 15
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useful life of at least five years. Debt will not be issued for periods exceeding the
useful life or average useful lives of the project or projects to be financed.
b. Project Financing: In general, the City expects to make a cash contribution to any
project with an expected useful life of less than 10 years, rather than relying on
100% debt financing.
c. Debt Standards and Structure
Debt will be structured for the shortest period consistent with a fair allocation of
costs to current and future beneficiaries or users. Debt will be structured to
achieve the lowest possible net cost to the City given market conditions, the
urgency of the capital project, net revenues expected from the project (if any),
and the nature and type of security provided. Moreover, to the extent possible,
the City will design the repayment of its overall debt so as to recapture rapidly its
credit capacity for future use. The City shall strive to repay at least 50 percent
within ten years.
d. Backloading: The City will seek to structure debt with level principal and interest
costs over the life of the debt. "Backloading" of costs will be considered only when
natural disasters or extraordinary or unanticipated external factors make the
short-term cost of the debt prohibitive, when the benefits derived from the debt
issuance can clearly be demonstrated to be greater in the future than in the
present, when such structuring is beneficial to the City’s overall amortization
schedule, or when such structuring will allow debt service to more closely match
project revenues during the early years of the project’s operation.
E. Refundings:
a. Advance refunding bonds shall not be utilized unless present value savings of
4% to 5% of refunded principal is achieved and unless the call date is within 3
years. The state law minimum is 3% of refunded principal. Bonds shall not be
advance refunded if there is a reasonable chance that revenues will be
sufficient to pre-pay the debt at the call date.
b. Current refunding bonds shall be utilized when present value savings of
3% of refunded principal is achieved or in concert with other bond issues to
save costs of issuance.
c. Special assessment or revenue debt will not be refunded unless the Chief
Financial Officer determines that special assessments or other sufficient
revenues will not be collected soon enough to pay off the debt fully at that call
date.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 16
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F. Debt Administration and Practices
In general, City debt will be issued through a competitive bidding process. Bids will be
awarded on a true interest cost basis (TIC), providing other bidding requirements are
satisfied. In the event that the City receives more than one bid with identical TICs, the tie
may be broken by a flip of a coin.
a. Municipal Advisor: The City will retain an external municipal advisor, selected by
the City’s Finance Division of the Administrative Services Department. The
utilization of the municipal advisor for particular bond sales will be at the
discretion of the Chief Financial Officer on a case by case basis and pursuant to
the municipal advisory services contract. The municipal advisors will have
comprehensive municipal debt issuance experience with diverse financial
structuring requirements and pricing of municipal securities.
b. Bond Counsel: The City will retain external bond counsel for all debt issues. No
debt will be issued by the City without a written opinion by bond counsel affirming
that the City is authorized to issue the debt, stating that the City has met all state
constitutional and statutory requirements necessary for issuance, and
determining the debt’s federal income tax status.
c. Fiscal Agents: The Finance Division will utilize a fiscal agent on all City
indebtedness. Fiscal agent fees for outstanding bonds will be paid from the Bond
Interest and Redemption Fund, unless specified otherwise by the Chief Financial
Officer.
d. Disclosure: The city shall comply with SEC rule 15(c)2(12) on primary and
continuing disclosure. Continuing disclosure reports shall be filed no later than
180 days after receipt of the city’s annual financial report.
e. Arbitrage: The city shall complete an arbitrage rebate report for each issue no less
than every five years after its date of issuance.
f. Communication: The city will maintain frequent and regular communications
with bond rating agencies about its financial condition and will follow a policy of
full disclosure in every financial report and bond prospectus. The city will comply
with Securities Exchange Commission (SEC) reporting requirements.
g. Reporting: The City will report at least annually the outstanding bonds to the City
Council.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 17
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G. Post Issuance Debt Compliance Policy
The City of St. Louis Park, Minnesota (the “Issuer”) issues tax-exempt governmental bonds
(“TEBs”) to finance various public projects. As an issuer of TEBs, the Issuer is required by
the terms of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as amended
(the “Code”), and the Treasury Regulations promulgated thereunder (the “Treasury
Regulations”), to take certain actions after the issuance of TEBs to ensure the continuing
tax-exempt status of such bonds. In addition, Section 6001 of the Code and Section 1.6001-
1(a) of the Treasury Regulations impose record retention requirements on the Issuer with
respect to its TEBs. This Post-Issuance Compliance Procedure and Policy for Tax-Exempt
Governmental Bonds (the “Policy”) has been approved and adopted by the Issuer to ensure
that the Issuer complies with its post-issuance compliance obligations under applicable
provisions of the Code and Treasury Regulations.
1. Effective Date and Term. The effective date of this Policy is the date of approval
by the City Council of the Issuer (November 5, 2012) and this Policy shall remain in effect
until superseded or terminated by action of the City Council of the Issuer.
2. Responsible Parties. The City’s Chief Financial Officer of the Issuer (the
“Compliance Officer”) shall be the party primarily responsible for ensuring that the Issuer
successfully carries out its post-issuance compliance requirements under applicable
provisions of the Code and Treasury Regulations. The Compliance Officer will be assisted
by the staff of the Issuer and other officials when appropriate. The Compliance Officer of
the Issuer will also be assisted in carrying out post-issuance compliance requirements by
the following organizations:
(a) Bond Counsel (as of the date of approval of this Policy, bond counsel for the Issuer
is Kennedy & Graven, Chartered);
(b) Municipal Advisor (as of the date of approval of this Policy, the municipal advisor
of the Issuer is Ehlers & Associates, Inc.);
(c) Paying Agent (the person, organization, or officer of the Issuer primarily
responsible for providing paying agent services for the Issuer); and
(d) Rebate Analyst (the organization primarily responsible for providing rebate
analyst services for the Issuer).
The Compliance Officer shall be responsible for assigning post-issuance compliance
responsibilities to members of the Finance Department and other staff of the Issuer, Bond
Counsel, Paying Agent, and Rebate Analyst. The Compliance Officer shall utilize such other
professional service organizations as are necessary to ensure compliance with the post-
issuance compliance requirements of the Issuer. The Compliance Officer shall provide
training and educational resources to Issuer staff responsible for ensuring compliance with
any portion of the post-issuance compliance requirements of this Policy.
Study session meeting of February 24, 2020 (Item No. 3)
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3. Post-Issuance Compliance Actions. The Compliance Officer shall take the
following post-issuance compliance actions or shall verify that the following post-issuance
compliance actions have been taken on behalf of the Issuer with respect to each issue of
TEBs:
(a) The Compliance Officer shall prepare a transcript of principal documents (this
action will be the primary responsibility of Bond Counsel).
(b) The Compliance Officer shall file with the Internal Revenue Service (the “IRS”),
within the time limit imposed by Section 149(e) of the Code and applicable Treasury
Regulations, an Information Return for Tax-Exempt Governmental Obligations, Form 8038-
G (this action will be the primary responsibility of Bond Counsel).
(c) The Compliance Officer shall prepare an “allocation memorandum” for each issue
of TEBs in accordance with the provisions of Treasury Regulations, Section 1.148-6(d)(1),
that accounts for the allocation of the proceeds of the tax-exempt bonds to expenditures
not later than the earlier of:
(i) eighteen (18) months after the later of (A) the date the expenditure is paid, or (B) the
date the project, if any, that is financed by the tax-exempt bond issue is placed in service;
or
(ii) the date sixty (60) days after the earlier of (A) the fifth anniversary of the issue date of
the tax-exempt bond issue, or (B) the date sixty (60) days after the retirement of the tax-
exempt bond issue.
Preparation of the allocation memorandum will be the primary responsibility of the
Compliance Officer (in consultation with the Municipal Advisor and Bond Counsel).
(d) The Compliance Officer, in consultation with Bond Counsel, shall identify proceeds
of TEBs that must be yield-restricted and shall monitor the investments of any
yield-restricted funds to ensure that the yield on such investments does not exceed the
yield to which such investments are restricted.
(e) In consultation with Bond Counsel, the Compliance Officer shall determine
whether the Issuer is subject to the rebate requirements of Section 148(f) of the Code with
respect to each issue of TEBs. In consultation with Bond Counsel, the Compliance Officer
shall determine, with respect to each issue of TEBs of the Issuer, whether the Issuer is
eligible for any of the temporary periods for unrestricted investments and is eligible for any
of the spending exceptions to the rebate requirements. The Compliance Officer shall
contact the Rebate Analyst (and, if appropriate, Bond Counsel) prior to the fifth anniversary
of the date of issuance of each issue of TEBs of the Issuer and each fifth anniversary
thereafter to arrange for calculations of the rebate requirements with respect to such TEBs.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 19
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If a rebate payment is required to be paid by the Issuer, the Compliance Officer shall
prepare or cause to be prepared the Arbitrage Rebate, Yield Reduction and Penalty in Lieu
of Arbitrage Rebate, Form 8038-T, and submit such Form 8038-T to the IRS with the
required rebate payment. If the Issuer is authorized to recover a rebate payment previously
paid, the Compliance Officer shall prepare or cause to be prepared the Request for
Recovery of Overpayments Under Arbitrage Rebate Provisions, Form 8038-R, with respect
to such rebate recovery, and submit such Form 8038-R to the IRS.
4. Procedures for Monitoring, Verification, and Inspections. The Compliance Officer
shall institute such procedures as the Compliance Officer shall deem necessary and
appropriate to monitor the use of the proceeds of TEBs issued by the Issuer, to verify that
certain post-issuance compliance actions have been taken by the Issuer, and to provide for
the inspection of the facilities financed with the proceeds of such bonds. At a minimum,
the Compliance Officer shall establish the following procedures:
(a) The Compliance Officer shall monitor the use of the proceeds of TEBs to: (i) ensure
compliance with the expenditure and investment requirements under the temporary
period provisions set forth in Treasury Regulations, Section 1.148-2(e); (ii) ensure
compliance with the safe harbor restrictions on the acquisition of investments set forth in
Treasury Regulations, Section 1.148-5(d); (iii) ensure that the investments of any yield-
restricted funds do not exceed the yield to which such investments are restricted; and
(iv) determine whether there has been compliance with the spend-down requirements
under the spending exceptions to the rebate requirements set forth in Treasury
Regulations, Section 1.148-7.
(b) The Compliance Officer shall monitor the use of all bond-financed facilities in
order to: (i) determine whether private business uses of bond-financed facilities have
exceeded the de minimis limits set forth in Section 141(b) of the Code as a result of leases
and subleases, licenses, management contracts, research contracts, naming rights
agreements, or other arrangements that provide special legal entitlements to
nongovernmental persons; and (ii) determine whether private security or payments that
exceed the de minimis limits set forth in Section 141(b) of the Code have been provided by
nongovernmental persons with respect to such bond-financed facilities. The Compliance
Officer shall provide training and educational resources to any Issuer staff who have the
primary responsibility for the operation, maintenance, or inspection of bond-financed
facilities with regard to the limitations on the private business use of bond-financed
facilities and as to the limitations on the private security or payments with respect to bond-
financed facilities.
(c) The Compliance Officer shall undertake the following with respect to each
outstanding issue of TEBs of the Issuer: (i) an annual review of the books and records
maintained by the Issuer with respect to such bonds; and (ii) an annual physical inspection
of the facilities financed with the proceeds of such bonds, conducted by the Compliance
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 20
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Officer with the assistance with any Issuer staff who have the primary responsibility for the
operation, maintenance, or inspection of such bond-financed facilities.
5. Record Retention Requirements. The Compliance Officer shall collect and retain
the following records with respect to each issue of TEBs of the Issuer and with respect to
the facilities financed with the proceeds of such bonds: (i) audited financial statements of
the Issuer; (ii) appraisals, demand surveys, or feasibility studies with respect to the facilities
to be financed with the proceeds of such bonds; (iii) publications, brochures, and
newspaper articles related to the bond financing; (iv) trustee or paying agent statements;
(v) records of all investments and the gains (or losses) from such investments; (vi) paying
agent or trustee statements regarding investments and investment earnings;
(vii) reimbursement resolutions and expenditures reimbursed with the proceeds of such
bonds; (viii) allocations of proceeds to expenditures (including costs of issuance) and the
dates and amounts of such expenditures (including requisitions, draw schedules, draw
requests, invoices, bills, and cancelled checks with respect to such expenditures);
(ix) contracts entered into for the construction, renovation, or purchase of bond-financed
facilities; (x) an asset list or schedule of all bond-financed depreciable property and any
depreciation schedules with respect to such assets or property; (xi) records of the purchases
and sales of bond-financed assets; (xii) private business uses of bond-financed facilities that
arise subsequent to the date of issue through leases and subleases, licenses, management
contracts, research contracts, naming rights agreements, or other arrangements that
provide special legal entitlements to nongovernmental persons and copies of any such
agreements or instruments; (xiii) arbitrage rebate reports and records of rebate and yield
reduction payments; (xiv) resolutions or other actions taken by the governing body
subsequent to the date of issue with respect to such bonds; (xv) formal elections authorized
by the Code or Treasury Regulations that are taken with respect to such bonds; (xvi)
relevant correspondence relating to such bonds; (xvii) documents related to guaranteed
investment contracts or certificates of deposit, credit enhancement transactions, and
financial derivatives entered into subsequent to the date of issue; (xviii) copies of all Form
8038-Ts and Form 8038-Rs filed with the IRS; and (xix) the transcript prepared with respect
to such TEBs.
The records collected by the Issuer shall be stored in any format deemed appropriate by
the Compliance Officer and shall be retained for a period equal to the life of the TEBs with
respect to which the records are collected (which shall include the life of any bonds issued
to refund any portion of such TEBs or to refund any refunding bonds) plus three (3) years.
6. Remedies. In consultation with Bond Counsel, the Compliance Officer shall
become acquainted with the remedial actions under Treasury Regulations, Section 1.141-
12, to be utilized in the event that private business use of bond-financed facilities exceeds
the de minimis limits under Section 141(b)(1) of the Code. In consultation with Bond
Counsel, the Compliance Officer shall become acquainted with the Tax Exempt Bonds
Voluntary Closing Agreement Program described in Notice 2008-31, 2008-11 I.R.B. 592, to
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 21
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be utilized as a means for an issuer to correct any post-issuance infractions of the Code and
Treasury Regulations with respect to outstanding tax-exempt bonds.
7. Continuing Disclosure Obligations. In addition to its post-issuance compliance
requirements under applicable provisions of the Code and Treasury Regulations, the Issuer
has agreed to provide continuing disclosure, such as annual financial information and
material event notices, pursuant to a continuing disclosure certificate or similar document
(the “Continuing Disclosure Document”) prepared by Bond Counsel and made a part of the
transcript with respect to each issue of bonds of the Issuer that is subject to such continuing
disclosure requirements. The Continuing Disclosure Documents are executed by the Issuer
to assist the underwriters of the Issuer’s bonds in meeting their obligations under Securities
and Exchange Commission Regulation, 17 C.F.R. Section 240.15c2-12, as in effect and
interpreted from time to time (“Rule 15c2-12”). The continuing disclosure obligations of
the Issuer are governed by the Continuing Disclosure Documents and by the terms of Rule
15c2-12. The Compliance Officer is primarily responsible for undertaking such continuing
disclosure obligations and to monitor compliance with such obligations.
8. Other Post-Issuance Actions. If, in consultation with Bond Counsel, Municipal
Advisor, Paying Agent, Rebate Analyst, or the City Council, the Compliance Officer
determines that any additional action not identified in this Policy must be taken by the
Compliance Officer to ensure the continuing tax-exempt status of any issue of
governmental bonds of the Issuer, the Compliance Officer shall take such action if the
Compliance Officer has the authority to do so. If, after consultation with Bond Counsel,
Municipal Advisor, Paying Agent, Rebate Analyst, or the City Council, the Compliance Officer
determines that this Policy must be amended or supplemented to ensure the continuing
tax-exempt status of any issue of governmental bonds of the Issuer, the Compliance Officer
shall recommend to the City Council that this Policy be so amended or supplemented.
9. Taxable Governmental Bonds. Most of the provisions of this Policy, other than the
provisions of Section 7, are not applicable to governmental bonds the interest on which is
includable in gross income for federal income tax purposes. On the other hand, if an issue
of taxable governmental bonds is later refunded with the proceeds of an issue of tax-
exempt governmental refunding bonds, then the uses of the proceeds of the taxable
governmental bonds and the uses of the facilities financed with the proceeds of the taxable
governmental bonds will be relevant to the tax-exempt status of the governmental
refunding bonds. Therefore, if there is any reasonable possibility that an issue of taxable
governmental bonds may be refunded, in whole or in part, with the proceeds of an issue of
TEBs, then for purposes of this Policy, the Compliance Officer shall treat the issue of taxable
governmental bonds as if such issue were an issue of TEBs and shall carry out and comply
with the requirements of this Policy with respect to such taxable governmental bonds. The
Compliance Officer shall seek the advice of Bond Counsel as to whether there is any
reasonable possibility of issuing TEBs to refund an issue of taxable governmental bonds.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 22
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10. Qualified 501(c)(3) Bonds. If the City issues bonds to finance a facility to be owned
by the City but which may be used, in whole or in substantial part, by a nongovernmental
organization that is exempt from federal income taxation under Section 501(a) of the Code
as a result of the application of Section 501(c)(3) of the Code (a “501(c)(3) Organization”),
the City may elect to issue the bonds as “qualified 501(c)(3) bonds” the interest on which is
exempt from federal income taxation under Sections 103 and 145 of the Code and
applicable Treasury Regulations. Although such qualified 501(c)(3) bonds are not
governmental bonds, at the election of the Compliance Officer, for purposes of this Policy,
the Compliance Officer shall treat such issue of qualified 501(c)(3) bonds as if such issue
were an issue of tax-exempt governmental bonds and shall carry out and comply with the
requirements of this Policy with respect to such qualified 501(c)(3) bonds. Alternatively, in
cases where compliance activities are reasonably within the control of the relevant
501(c)(3) Organization, the Compliance Officer may determine that all or some portion of
compliance responsibilities described in this Policy shall be assigned to the relevant
organization.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 23
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Capital Improvements
The city will maintain buildings, infrastructure, utilities, parks, facilities, and other assets in a
manner that protects the investment and minimizes future maintenance and replacement
costs.
The Chief Financial Officer will annually prepare and submit to the City Council a Capital
Improvements Plan (CIP) for the next ten fiscal years and in congruence with the Long Range
Financial Management Plan.
At a minimum, the CIP will include a description of the proposed improvement, the estimated
cost, timing and potential sources of funding. If applicable, the CIP will identify implications for
the operating budget created by the proposed improvement.
The city will maintain a system of capital charges for sanitary sewer, storm water, and water
services. The charges will be collected when undeveloped land is platted and when new users
connect to the system. Revenues from the capital charges will be accumulated and used to pay
for the capital investment related to the maintenance and expansion of the utility systems.
The city will strive to maximize the revenues collected from capital charges in order to protect
existing utility users from bearing the costs associated with growth.
The city will maintain an equipment acquisition and replacement program. The city will
annually update the plan to provide funding for all equipment purchases over $25,000 to be
made in the next ten fiscal years. The city shall attempt to fund the program without the use of
debt. It is recognized that State imposed levy limits may create the need to incur debt for
equipment acquisition.
The city will prepare an on-going plan for the reconstruction of all city streets. The city will
provide a sustainable source of funding for the street reconstruction program. The city will
annually prepare cash flow projections for street reconstruction projects to ensure adequate
and ongoing funding.
Capital Assets and Capitalization Thresholds
A capital asset is a tangible asset that has a life expectancy of more than one year. For financial
statement reporting purposes, the city reports capital assets using the modified approach for
street and trail system capital assets in the following categories and has established a
capitalization threshold for each category:
Capitalization
Category Threshold__
Land All
Buildings $5,000
Other Improvements $25,000
Machinery and equipment $10,000
Vehicles $10,000
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 24
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Infrastructure $250,000
Construction in progress Accumulate all costs and capitalize
if over $100,000 when completed
Other assets $10,0005,000
Another criterion for recording capital assets is capital-related debt. Capital assets purchased
with debt proceeds should be capitalized and depreciated over their estimated useful life.
The amount to record for a capital asset is any cost incurred to put the asset into its usable
condition. Donated capital assets should be reported at fair value at the time of acquisition.
Risk Management
1. The city will maintain a Risk Management Program that will minimize the impact of legal
liabilities, natural disasters or other emergencies through the following activities:
Loss Prevention. Prevent negative occurrences.
Loss Control. Reduce or mitigate expenses of a negative occurrence.
Loss Financing. Provide a means to finance losses.
Loss Information Management. Collect and analyze relevant data to make
prudent loss prevention, loss control and loss financing decisions.
2. The city will maintain an active Safety Committee comprised of city employees.
3. The city will periodically conduct educational safety and risk avoidance programs,
through its Safety Committee and with the participation of its insurers, within its various
departments.
4. The city will maintain the highest deductible amount, considering the relationship
between cost and the city’s ability to sustain the loss.
Accounting, Auditing, and Financial Reporting
The city will establish and maintain the highest standard of accounting practices, in
conformity with Generally Accepted Accounting Principles (GAAP).
The city will attempt to maintain the GFOA Certificate of Excellence in Financial
Reporting.
The city will arrange for an annual audit of all funds and account groups by independent
certified public accountants or by the State Auditor’s Office.
Regular monthly reports present a summary of financial activity by major type of funds
as compared to budget. Department directors will review monthly reports comparing
actual revenues and expenditures to the budgeted amounts. Any negative variance in
any revenue or spending category (Personal Services, Supplies, Other Charges and
Services, Capital Outlay) for their department as a whole projected to exceed $10,000
by year-end will be reported in writing to the Chief Financial Officer and the City
Manager.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 25
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Operating Budget
The City Manager, when submitting the proposed budget to the City Council, will submit
a balanced budget in which appropriations will not exceed the total of the estimated
General fund revenue and the fund balance available after applying the General Fund
Reserve Policy.
The city may annually appropriate a contingency appropriation in the General fund
budget to provide for unanticipated expenditures of a non-recurring nature.
In the event there is an unanticipated shortfall of revenues in a current year budget, the
Chief Financial Officer may recommend the use of a portion of the General fund
balance, not to exceed the amount of available cash or reserved for working capital or
already appropriated to the General fund current budget.
The budget will provide for adequate maintenance of buildings and equipment, and for
their orderly replacement.
The Chief Financial Officer will prepare regular monthly reports comparing actual
revenues and expenditures to the budgeted amount. All significant variances will be
summarized in a written report to the City Manager and City Council.
The operating budget will describe the major goals to be achieved and the services and
programs to be delivered for the level of funding provided.
Before adding a new program or service, the city will consider the cost benefit analysis
of using outside contractors versus in-house provided services.
The city will not sell assets or use one-time accounting principle changes to balance the
budget for any fund.
The city will provide ample time and opportunity for public input into its budget setting
deliberations each year, including any required public hearings.
Directors will be responsible for administration of their departmental operating budget.
Requests for budget adjustments must be submitted and approved before any program
incurs cost overruns for the annual budget period.
The budget shall be adjusted as needed to recognize significant deviations from original
budget expectations. The council shall consider budget amendments each December.
Budget amendments are intended to recognize changes made by the council during the
year, to reflect major revenue and expenditure deviations from budgeted amounts, and
to consider year-end budget requests. Budget amendments are not intended to create
a budget that matches budgeted revenues and expenditures to actual revenue and
expenditures.
Administrative budget amendments may be made throughout the year by department
directors to adjust line item budgets within their department as long as the total
departmental budget does not change. These line item budget changes exclude
personal service and capital outlay categories. Administrative budget admendments
must be requested in writing and approved by the City Manager and Chief Financial
Officer.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 26
23
Purchasing
Purpose
To provide a guide for general purchasing, contracts and professional services. Purchasing for
the City of St. Louis Park is established by the City Council under the City Charter, the City Code
and State Statute. This is intended as a guide; questions regarding this document should be
directed to the Chief Financial Officer or City Manager.
Policy
To ensure that the goods and services required by the City are obtained using established
procedures that comply with all legal requirements for public purpose expenditures while
promoting fair and open competition to ensure public confidence in the procurement process,
ensure fair and equitable treatment of vendors who transact business with the City, and
provide safeguards for the maintenance of a procurement system of quality and integrity.
I. Responsibility
a. The City Manager is the chief purchasing agent of the City and has the authority
to approve purchases up to $175,000 per the City Charter and State Statute. The
City Manager has delegated the authority to approve purchases up to $50,000 to
the Chief Financial Officer and Directors. Purchases in excess of $175,000
typically require Council approval and usually require competitive bid letting.
b. The City Manager shall identify Directors or other staff who shall be responsible
for each fund or department in the annual budget. These individuals shall be
responsible for compliance with the annual budget and for all expenditures for
their departments and funds. The responsibility lies with each department to
keep the City Manager and Chief Financial Officer informed of purchases.
c. Directors or their designee are responsible to follow purchasing regulations and
procedures such as, but not limited to: obtaining bids or quotes, maintain
records of bids or quotes in accordance with records retention requirements,
place actual orders, receive and verify deliveries, and approve invoices for
payment.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 27
24
General Purchasing Required Approvals
Contract or
purchase
amount
Documentation Director Chief
Financial
Officer
City
Manager
Council
Less than
$5,000
Open Market Or
Designee
Less than
$25,000
2 or more quotes if
practical
X X
$25,000-
$50,000
2 or more quotes
or sealed bids –
competitive
bidding is allowed
but not required.
X X
$50,000-
$175,000
2 or more quotes
or sealed bids –
competitive
bidding is allowed
but not required.
X X X
$175,000+ Competitive bids
required
X X X X
II. General purchasing
a. Under City Charter and Ordinance, it has been determined purchasing will follow
the Uniform Municipal Contracting Law, Minnesota Statutes Chapter 471.345.
This allows the City Manager the authority to incorporate changes to our
purchasing limitations in accordance with MN Statutes. City Manager may
develop a process which may be more restrictive than State Law, but may not be
less restrictive. A "contract" (general purchasing) means an agreement entered
into by a municipality for the sale or purchase of supplies, materials, equipment
or the rental thereof, or the construction, alteration, repair or maintenance of
real or personal property.
b. Capital item purchases that have been authorized by the City Council through
either the budget process or the Capital Improvement Plan approval may be
made using these guidelines. If an item has not been specifically approved
during these annual processes, then they must be taken back for explicit
approval.
c. When purchasing use the Environmentally Preferable Purchasing Policy. The
policy can be found at the following link: O:\CITYWIDE\SHARE\EP3
Environmentally Preferable Purchasing Policy .
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 28
25
d. When purchasing, reference resolution 10-060 supporting minority-owned
business, women’s business enterprises and small business in contracting,
professional services and purchasing. The resolution can be found at the
following link: O:\CITYWIDE\RECORDSLIBRARY\Resolution Council\2010\10-
060.pdf .
III. Purchases less than $5,000.
If the amount is below $5,000, the purchase may be made in the open market.
Department Directors may authorize any person in their department to make purchases
at this level.
IV. Purchases less than $25,000.
If the amount is estimated to be greater than $5,000 up to $25,000, the contract may be
made by quotation or in the open market. If the contract is made upon quotation it
shall be based, so far as practicable, on at least two quotations. Where it is
recommended to purchase from other than the low quote, the justification must be
clearly presented. The documentation presented must be kept on file for at least
one year. Where it is deemed impossible to obtain more than one quotation, the
reason therefore will be documented and kept on file for one year.
V. Purchases from $25,000-$175,000.
If the amount is estimated to exceed $25,000 but not to exceed $175,000, the contract
may be made either by upon sealed bids or by direct negotiation, by obtaining two or
more quotations for the purchase or sale when possible and without advertising for bids
or otherwise complying with the requirements of competitive bidding.
VI. Purchases in excess of $175,000.
Sealed bids shall be obtained by public notice for major purchases with final award by
the City Council. Bids must be advertised in the city’s legal newspaper, publicly opened
and approved by Council resolution. There are some exceptions to this law, including
contracts that are funded in part by special assessments as set forth in M.S, 429.041,
subd.1. Questions about this process or thresholds should be directed to the City’s
Chief Financial Officer.
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 29
26
Exceptions to Competitive Bidding
The following are some of the more common exceptions to the competitive bidding
requirements:
Contracts less than $175,000
Cooperative purchasing organizations
Intergovernmental contracts
Noncompetitive supplies and equipment
Real estate purchases
Professional services including:
o Architectural
o Auditing
o Engineering
o Legal
o Group Insurance
o Banking Services
o Investment Services
o Financial Service Providers
o Construction Management
o Surveying
o Emergency Purchases
Contractor’s Bond
The city is required to obtain both a payment and performance bond for all public work
contracts over $175,000. Payment and performance bonds protect the city as well as
subcontractors and persons providing labor and materials. When the public work
contract is let, the amount of the bond needs to be equal to the contract price. If the
contract price increases due to change orders, unforeseen conditions, cost overruns or
any other reason after the contract is signed, the city has the option of increasing the
amount of the contractor’s bond. Consideration may be given for the percentage of the
contract that is complete in relation to the contractor’s bond and the increase in the
contract price.
VII. Professional Services
Contracts for professional services in excess of $175,000 shall be submitted to the City
Council for approval. The term “Professional Services” applies to all advisory services
such as, but not limited to: auditing, engineering, financial, legal, personnel, technical,
training, or other services. Contracts for professional services shall be made only with
responsible consultants who have the capability to successfully fulfill the contractual
requirements. Consideration shall be given to their past performance and experience,
their financial capacity to complete the project, the availability of personnel, and other
appropriate criteria. The nature of the professional service is typically written as a
request for proposals (RFP).
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 30
27
Required Approvals
Professional
service
Documentation Director City
Manager
Council
Up to $50,000 2 or more quotes if possible X
$50,000-
$175,000
Multiple quotes
recommended
X X
$175,000+ Multiple quotes
recommended
X X X
VIII. Emergency Purchases
Minnesota Statute §12.37 gives the City the ability to declare an emergency situation for
a limited period of time. During such an emergency, the City is not required to use the
typically mandated procedures for purchasing and contracts. Emergency purchases
require approval by the City Manager, Chief Financial Officer and, when necessary
because of the dollar amount, formal City Council action. An emergency purchase is
defined as one where an immediate response is required to protect the health, welfare
or safety of the public or public property.
IX. Conflicts of Interest
Minnesota State Statutes §471.87 and §471.88 prohibit the purchase of goods and
services wherever a conflict of interest may exist. City of St. Louis Park Personnel Rules
require employees to disclose to their immediate supervisor any personal financial
interest in the selling or buying of goods or services for the City of St. Louis Park. No
purchase orders, contracts or service agreements shall be given to an employee of the
City or to a partnership or corporation of which an employee is a major stockholder or
principal. No employee shall enter into the relationship with a vendor where the
employee's actions are, or could reasonably be viewed as, not in the best interests of
the City. If any employee becomes involved in a possible conflict situation, the employee
shall disclose the nature of the possible conflict to his or her supervisor and to the City
Manager. The City Manager shall promptly notify the individual in writing of an approval
or disapproval of the activity. If disapproved, the employee shall remove himself or
herself from the conflict situation. In addition, any disciplinary actions may be
considered.
In addition, City Charter section 12.18. “Personal financial conflicts of public officials and
section 12.19. Financial conflicts of association of public officials; contract and
transaction voidable” must be followed.
X. Federal purchases
Under uniform grant guidance (2 CFR 200.317–326) there are additional procurement
requirements that need to be considered when making purchases related to a federal
program. Five procurement methods are identified including: micro-purchase
(<$10,0003,500), small purchase procedures (<$250150,000), sealed bid (>$17550,000),
competitive proposal (>$17550,000), and noncompetitive proposal (>$3,500). The
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 31
28
general purchasing policy addresses many of these requirements and the City will also
consider the full requirements in relation to each method as described in 2 CFR. The
micro-purchase threshold which is set by Federal Acquisition Regulation at 48 CFR
Subpart 2.1 is subject to change with inflation. The City will follow changes to thresholds
as modifications occur. When practicable, micro-purchasing will be distributed among
qualified suppliers.
The city will review the excluded parties list (https://www.sam.gov), to ensure than no
tentative parties, suspended and/or debarred contractors are contract with using
federal dollars. When using federal funding and making purchases in excess of $2,000
for construction dollars are subject to the Davis-Bacon Act. Also, the city will avoid
unnecessary/duplicate purchases, encourage use of excess Federal surplus property,
documenting rationale for procurement method used for purchases, and
documentation of selection of contract type maintained in the files. In addition, the city
will consider intergovernmental agreements where appropriate for procurement or use
of common or shared goods and services.
XI. Other
This document is not intended to cover all purchasing situations and regulations. For
instance, purchases needed for emergency operations should follow procedures set out
in the Emergency Plan and other regulations as approved by the City Manager or
designee. If there are questions regarding purchasing, they should be directed to your
Director or the Chief Financial Officer.
Formatted: Indent: Left: 0.5"
Study session meeting of February 24, 2020 (Item No. 3)
Title: Annual review of city financial management policies Page 32
Meeting: Study session
Meeting date: February 24, 2020
Written report: 4
Executive summary
Title: 2020 Census
Recommended action: Provide feedback to city staff/complete count committee on the
information in this report and help promote the 2020 Census through your networks!
Policy consideration: None.
Summary: April 1, 2020, is Census Day! The city has been busy preparing for the 2020 Census
with various efforts that have been underway for over a year. There will be a short presentation
about the Census at the city council’s March 2, 2020 meeting to help promote the Census to
others and motivate more people to self-respond to the Census questionnaire.
The city formed a local complete count committee (CCC) that has been meeting monthly since
June 2019. It includes 16 residents that have volunteered to be Census ambassadors in the
community. They provide feedback to city staff, they have volunteered their time to promote
the census at several local events and in their circles of influence in the community, and several
received training from the State Demographer’s office. An example of their efforts includes
being set up near the entrances of the middle school and high school during parent
communication nights.
Staff from multiple departments have lent their talents to the effort, as well. Staff from the
community development, information resources and administration departments have all been
working collaboratively and have been deeply involved. A summary of those efforts is shared in
the discussion section of the report.
The city has partnered with other metro cities, Hennepin County, Ramsey County, State
Demographers office and the Census Bureau to keep up on the latest news, strategies and
opportunities to collaborate on our outreach efforts.
One recent success is that the Census Bureau reached its target for job applicants in Hennepin
County. The Census Bureau continues to accept applications and hire census takers. The pay
rate in Hennepin County for the part-time, temporary Census taker jobs is $27.50 per hour.
Financial or budget considerations: None. This item was a budgeted activity.
Strategic priority consideration: St. Louis Park is committed to being a leader in racial equity
and inclusion in order to create a more just and inclusive community for all.
Supporting documents: Discussion
Prepared by: Sean Walther, planning and zoning supervisor
Reviewed by: Karen Barton, community development director
Approved by: Tom Harmening, city manager
Study session meeting of February 24, 2020 (Item No. 4) Page 2
Title: 2020 Census
Discussion
Background:
What is the Census? It is a full count of the population and it is required by the Constitution of
the United States. The Census Bureau has counted every resident in the U.S. every ten years,
beginning in 1790.
In previous censuses, most households returned their census forms by mail; census workers
walking neighborhoods throughout the United States counted the remaining households. The
upcoming Census adds an online response form to use modern and cost-efficient methods to
count everyone once and in the right place.
Why is the Census Important? The data that will be collected by the 2020 census are critical for
states, counties, and communities.
Representation Funding Data
Census data determines the
number of seats each state has
in the U.S. House of
Representatives and districts for
state government.
Census data guides federal
spending allocation of
approximately $589 billion to
local communities every year.
Census data helps make informed
decisions. Helps us plan roads,
schools, programs and
emergency services to best serve
changing populations.
Minnesota is at risk of losing a
seat in the U.S. House of
Representatives.
Even one missed person could
mean a forfeited $15,000 in
funding over ten years.
This data helps us understand
changes in demographics and
shifting needs.
General Timeline for the 2020 Census
•July 2017 – April 2018 → local update of census addresses
•Fall 2018 → form complete count committees to begin local census organizing work
•April 2018 → census questions delivered to congress
•September 2018 → recruitment for census taker and census office positions began
•April 1, 2019 → census promotional kickoff events
•July 2019 → communications and advertising campaign began
•August 2019 → area Census Bureau offices opened in Minnesota
•August 2019 → In-field address canvassing and group quarters operation began
•March 2020 → door-to-door enumeration and enumeration at transitory locations
begins
•April 1, 2020 → 2020 census day
•April 2020 → non-response follow-up begins for households that did not submit a
Census form
Study session meeting of February 24, 2020 (Item No. 4) Page 3
Title: 2020 Census
What are the roles of the Census Bureau, state demographic center and cities? The U.S. Census
Bureau is ultimately responsible for all aspects of the 2020 Census. The state demographic
center helps recruit, train, organize and support local governments and organizations as they
promote the 2020 Census. A city’s primary role is to provide accurate boundary and address
lists and implement local strategies to promote the 2020 Census.
What are the predicted non-response rates in St. Louis Park? The U.S. Census Bureau predicts
somewhat higher than normal non-response rates in several census tracts in St. Louis Park. Low
self-response rates could result in undercounts of the city’s population and certainly more
expensive and less efficient data collection. The map below shows the predicted non-response
rates, which is the percentage of the people that will not submit the census forms on their own.
Predicted non-response rates map.
These estimates are based on the demographics of the areas and past response rates to the
decennial Census and the American Communities Survey. These areas have more people that
are historically undercounted, including renters, babies, people of color and indigenous, senior
15.1% 18.4% 21.5% 21.4%
14.2%
22.3%
22.3%
14.5%
19.6% 21.6%
10.4%
21.0%
17.8%
13.3%
21%
Study session meeting of February 24, 2020 (Item No. 4) Page 4
Title: 2020 Census
citizens, veterans, foreign born, migrant workers, language constrained, people with disabilities,
snowbirds, college students, people living in poverty and people experiencing homelessness.
What have been some of City of St. Louis Park efforts? Below is a list of many, but not all, of the
activities that have been underway. Also, some activities are highlighted at the end of the list
that the racial equity and inclusion team lead.
• We have had a presence at many community events (information tables), including
Children First Ice Cream Social, State of the Community, National Night Out
neighborhood gatherings, Community Link and others. Our next events will be the
parent communication nights at the middle and high schools, and perhaps the
elementary school carnivals.
• We have presented to several community organizations, including St. Louis Park Area
Rental Coalition, League of Women Voters, Sunrise Rotary, St. Louis Park Business
Council, Family Services Collaborative, Parkshores Campus, neighborhood organization
annual meetings and other gatherings, as well as some places of worship.
• We have had articles published in the Park Perspective, Sun Sailor, Community
Education Spring Catalog, Newscaster, ECHO, and SPARC newsletter.
• We are posting regularly and with increasing frequency in social media and ParkTV.
• We have had inserts in the utility bills beginning in January and through the end of April.
• We are sending a direct letter to “snowbirds” that notified utility billing they will be out
of town for an extended period over the winter months.
• We are including flyers and articles in Peach Jar (electronic backpack newsletter) to
students and families of students in grades pre-K through grade 8.
• We have promoted Census job opportunities at the high school and other events.
Other notable activities: Staff have built partnerships with organizations and other engagement
practitioners across region and via formal and informal meetings shared information about the
census. For example, staff have built relationships with Latinx organizations in Minneapolis,
including HACER, to help us bolster our engagement efforts with the St. Louis Park Latinx
population. We have also reached out to the West African Collaborative complete count
committee that is based in St. Louis Park and serves the metro area.
Staff facilitated visits to classrooms and parent teacher
organizations meetings throughout schools. We worked
with a high school art class to create art around the
census. This art will be put up throughout the high school
and possibly the middle school.
Renters are one of our target audiences, so staff are
recruiting assistance from landlords and property
managers to post census information in their properties
and communications with their tenants. We have also
communicated to landlords and property managers their
unique responsibilities to cooperate with official census
takers to provide access to the common areas of their
buildings (not individual units) and to provide information
Study session meeting of February 24, 2020 (Item No. 4) Page 5
Title: 2020 Census
about their tenants if requested by the U.S. Census Bureau solely for the purposes of
generating statistical data for the census.
Next steps:
• Presentation to the city council on March 2, 2020.
• Staff requests city council help in delivering the message about the importance of the
2020 Census to your constituents through your networks and communications and help
motivate people to self-respond.
• Questionnaire assistance center (QAC). Staff are working through logistics to set up
QACs in the community. QACs would assist people that want to respond to the census
online, but do not have internet access at home or at work.
o All Ramsey County libraries will likely be QACs.
o We are exploring hosting a QAC at city hall or other city buildings.
o We are exploring the possibility of the Community Education computer lab at Lenox
as a resource.
o We are exploring having pop-up events and using the community engagement
vehicle as a mobile QAC during the census to areas with low response rates,
especially near rental communities in parts of town that are showing low self-
response rates.
• Census response challenge?
o We will be increasing outreach to neighborhood associations regarding the census.
o We may organize a friendly competition among all of our organized neighborhoods
to see who can improve their response rates the most over the 2010 Census
response rates.
• The human rights commission has included engagement around the census in their work
plan. We look forward to seeing how that takes shape!
• We will also participate in the U.S. Census Bureau’s new construction program to stay
on top of any new residential addresses that have been added in the last year.
• Use our city’s media tools to amplify messages about the upcoming census, including a
broad email blast through Gov Delivery in mid-March.
Meeting: Study session
Meeting date: February 24, 2020
Written report: 5
Executive summary
Title: Senior Community Services Annual Report
Recommended action: None; for information only.
Policy consideration: Does the council support the services that Senior Community Services
(SCS) is providing to seniors in St. Louis Park? Does the council wish to continue to provide an
annual financial contribution to assist in funding SCS?
Summary: SCS is a nonprofit organization with a mission to develop, coordinate and provide
services that help meet the needs of older adults and support their caregivers. Services
provided help with the upkeep of homes, townhouses, and apartments on a sliding fee scale to
seniors 60+. Services are provided through a combination of paid staff and volunteers.
In 2019, SCS served 64 senior residents in St. Louis Park throughout the year, completing 595
jobs and providing 1,268 hours of service. Funding from St. Louis Park helped to fund the
sliding-fee scale so SCS could provide the following services:
• Housekeeping
• Outdoor maintenance
• Handy person
• Home maintenance
• Painting
The city’s $10,000 contribution in 2019 equated to a contribution of $7.89 per hour of service
which assisted in subsidizing the sliding-fee scale for low-and-moderate income seniors.
Financial or budget considerations:
The city provided SCS with a $10,000 funding contribution in 2019 and approved a $10,000
funding contribution from the city for 2020 to assist in funding SCS services provided to St.
Louis Park seniors. Funds have been allocated in the 2020 Housing Rehab Fund.
Strategic priority consideration:
St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a
more just and inclusive community for all.
Attachment: Senior Community Services 2019 annual report
Prepared by: Michele Schnitker, cd deputy director & housing supervisor
Reviewed By: Karen Barton, community development director
Approved by: Tom Harmening, city manager
10201 Wayzata Blvd., Suite 335, Minnetonka, MN 55305
www.seniorcommunity.org
February 7, 2020 Michele Schnitker Housing Supervisor/Deputy Community Development Director City of St. Louis Park 5005 Minnetonka Boulevard, St. Louis Park, MN 55416
Dear Michele, Thank you for prioritizing older adults in the city of St. Louis Park! The funding of $10,000 in 2019 that you provided Senior Community Services made a positive impact in the lives of many older adults in our shared community. The HOME program also helped to ensure that the property values of the homes of older adults in St. Louis Park remains steady and, in turn, protected the property values of their neighbors. We know that we all do better when we can all age successfully. Please let me know if you have any questions or if you would like any additional information. Thank you for your partnership!
Sincerely,
Deb Taylor Chief Executive Officer 952-767-7897
Study session meeting of February 24, 2020 (Item No. 5)
Title: Senior Community Services Annual Report Page 2
2 | Page
2019 FINAL REPORT TO THE CITY OF ST. LOUIS PARK 1.What needs did the HOME program address in St. Louis Park?Senior Community Services HOME program provides services to help with the upkeepof a home, townhouse, and apartment in St. Louis Park and we provide these serviceson a sliding-fee scale to seniors, age 60+.The HOME program provided low-income older adults with high-quality chore andhome maintenance services delivered by trusted professionals and communityvolunteers. As the largest senior chore program in Minnesota, we provided theseessential services on a sliding-fee scale at an affordable cost. Funding from St. LouisPark helped to fund the sliding-fee scale so we could provide the following services tolow-income seniors in St. Louis Park:1)Housekeeping: performs housework that is often difficult for older adults to safelyperform such as cleaning, laundry and grocery shopping.2)Outdoor: provides snow shoveling and de-icing, grass cutting and leaf raking,preventing winter senior falls.3)Handyperson: changes furnace filters, install winter weatherization, and makeplumbing, carpentry and electrical repairs.4)Home Safety: conducts safety assessments and make improvements, such as grabbars and improved lighting, and reduce tripping hazards.5)Painting: provides interior and exterior painting. Paid staff provided housecleaning,minor home maintenance and interior/exterior painting.
2.What were the economic benefits to providing HOME services to low- to
moderate- income seniors?We saw more seniors on fixed incomes. For these seniors that own their modesthomes, it is most affordable place to live. For those seniors on fixed incomes renting anapartment, it is still a more affordable option than the alternatives. But, without theHOME services provided on a sliding-fee scale based on income, many seniors’ inabilityto pay market rates for upkeep of their modest homes or apartments can result inhomelessness or they become segregated into senior housing.If a senior on a fixed income can afford to stay in their own homes with the help ofsubsidized services, then they can stay off public assistance. If they move into assistedliving, the annual cost is $50,000 a year. Even after a senior sells their modest home for$150,000 and moves into assisted living, they only have money for three years beforethat have to go on public assistance and then we all pay the price.
3.What were the social and emotional benefits to providing HOME services to low-
to moderate- income seniors?As we think about growing older, nine out of 10 of us want to remain in our own homesand connected to our communities. It is the most affordable place to live for many of usas we age. HOME services helps people stay in their homes, out of segregated seniorhousing and off public assistance. Isn’t that what we all want? We all do better whenall of us can age successfully in our own homes and connected to our community.
Study session meeting of February 24, 2020 (Item No. 5)
Title: Senior Community Services Annual Report Page 3
3 | Page
4.The cost and sustainability of HOME ServicesOur true cost to provide home maintenance, snow removal, lawn mowing andhousekeeping services range from $30 - $38/Hour. We provide these services on asliding fee scale, so that seniors on a fixed income can afford the upkeep of their homes,remain safely in their own homes and stay connected to their city.When we take $10,000 and divide it by 1,268 hours of services, the cost to St. LouisPark was $7.89/Hour. The $7.89/Hour helped to subsidize the sliding-fee scale for 64low- to moderate- income seniors.
Senior Community Services will sustain the HOME program using a blend of government, philanthropic support, fee for service, and contracts with healthcare. Since most of the older adults served are low-income, the program is not sustainable without community support – like the City of St. Louis Park.
St. Louis Park 2019 Projected 2019 Actual
Clients 65 64
Jobs 590 595
Hours 1,450 1,268
Study session meeting of February 24, 2020 (Item No. 5)
Title: Senior Community Services Annual Report Page 4