HomeMy WebLinkAbout2020/04/27 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
APRIL 27, 2020
All meetings of the St. Louis Park City Council will be conducted by telephone or other
electronic means starting March 30, 2020, and until further notice. This is in accordance with a
local emergency declaration issued the city council, in response to the coronavirus (COVID-19)
pandemic. Additionally, city facilities are closed to the public until May 4 in keeping with the
April 8, 2020, Executive Order 20-33 issued by Gov. Tim Walz directing Minnesotans to Stay at
Home April 8 - May 4.
Some or all members of the St. Louis Park City Council will participate in the April 27, 2020
meeting by electronic device or telephone rather than by being personally present at the city
council's regular meeting place at 5005 Minnetonka Blvd.
Members of the public can monitor the council meeting by video and audio at
https://bit.ly/watchslpcouncil or by calling +1-312-535-8110 meeting number (access code):
359 770 50 for audio only. Cisco Webex will be used to conduct videoconference meetings of
the city council, with council members and staff participating from multiple locations.
6:30 p.m.
RECONVENE LOCAL BOARD OF APPEAL AND EQUALIZATION (LBAE)
Immediately following LBAE
STUDY SESSION
Discussion items
1. 60 mins. COVID-19 pandemic update
2. 5 mins. Future study session agenda planning and prioritization
5 mins. Communications/updates (verbal)
Written reports
3. South Cedar Trails Homeowners Association Housing Improvement Area (HIA)
4. March 2020 monthly financial report
5. First quarter investment report (January – March 2020)
During the COVID-19 pandemic, agendas will be posted on Fridays on the entrance doors to city hall and on the text
display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website.
If you need special accommodations or have questions about the meeting, please call 952-924-2525.
2020 Local Board of Appeal and Equalization
Reconvene – April 27, 2020
Virtual Meeting Format
PROPOSED AGENDA
1. Reconvene the St. Louis Park Local Board of Appeal and Equalization
2. Roll Call – Declaration of Quorum
3. Acknowledgement of Trained Members (Kraft & Rog)
4. Review of Properties in Appeal
a. Board Action - Where Petitioner & Assessing Staff are Not in Agreement
b. Board Action – Where Petitioner has requested late addition to roster and staff
has not had time to complete value review (these continue until the board
adjourns)
c. Board Action – Where Petitioner has withdrawn or not responded
d. Board Action - Where Petitioner & Assessing Staff are in Mutual Agreement
For appeals in groups a-b-c, it is suggested that the board review each parcel
individually, discuss as you will and make individual board rulings. For the mutual
agreement category, each parcel should be read into the record and the board may
take one group action per DOR direction (April 2016).
5. Instruct Assessor to Complete Record of Changes for Submittal
6. Instruct Assessor to Inform Petitioners of Board Action via Mail
7. Complete the Local Board of Appeal and Equalization Certification Form
8. Adjourn if Board business is completed
Reconvene meeting of April 27, 2020 Page 2
Title: 2020 Local Board of Appeal and Equalization
Background for the 2020 St. Louis Park Local Board of Appeal and Equalization
All property owners are entitled to the right of appeal regarding their classification and market
value. The City is required by statute to conduct a Local Board of Appeal & Equalization meeting
to hear appeals or conduct an open book meeting with the next options being the County
Board of Appeal & Equalization and ultimately to the Minnesota State Tax Court.
The focus for the board is: the property classification which is determined by use; and, the
market value which is based on the characteristics of the real estate and market conditions as
of the date of the assessment (January 2, 2020). Minnesota statute requires that all properties
are assessed at full market value. The two dominant definitions of market value are:
MN Statute 272.03 – “Market value” means the usual selling price at the place where the
property to which the term is applied shall be at the time of assessment; being the price
which could be obtained at a private sale or an auction sale, if it is determined by the
assessor that the price from the auction sale represents an arm’s length transaction. The
price obtained at a forced sale shall not be considered.
Appraisal Institute – The most probable price, as of a specified date, in cash or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably,
and for self-interest, and assuming that neither is under undue duress. (The Appraisal of
Real Estate, 13th Edition, Appraisal Institute [2008], page 23)
The Board convened on April 13, 2020 at which meeting a total of nineteen (19) parcels were
recognized to be under appeal. The Board set the process and chose to reconvene April 27 to
review the merit of each appeal and to rule on them.
A few housekeeping observations are made for the reference of the board.
• One trained and certified Board member (Kraft & Rog) must be present at each meeting
the Board is in session. Best practice is for multiple trained members.
• Timeline of the assessment: The assessment as of January 2, 2020 is set relative to market
activity occurring prior to the date of assessment. The potential value influence arising
from the Covid-19 pandemic will be reviewed from the perspective of market reactions in
setting the 2021 assessment.
• The time window for the board to conclude business is normally 20 days after convening.
This deadline has been waived by DOR directive state-wide and the Local Boards may
convene/adjourn in the time period of April through May.
• It is essential that the Board rules on each question before it and likewise that the Board
recognizes that it can reduce, sustain or increase valuations as deemed necessary.
• Important – DOR direction: “It is the board’s responsibility to hear all appeals presented
until the board adjourns. A property owner can present their appeal at the initial meeting
Reconvene meeting of April 27, 2020 Page 3
Title: 2020 Local Board of Appeal and Equalization
or at any of the reconvene meetings. The board must hear that appeal and make a
decision. The board cannot dismiss the property owner’s appeal, unless the meeting is
adjourned.” The Hennepin County Assessor has reviewed that language and requested
that Local Boards accept appeals until final adjournment. We are doing so.
• At the writing of this Board packet, staff has added five (5) additional appeals to the
roster and endeavored to respond in a timely fashion.
• Prior to adjourning, the board should instruct the assessor to submit a record of their
actions on the Department of Revenue required form.
• Finally, the Local Board of Appeal Certification Form must be signed at each Board
meeting by all Board members present.
Background to Valuation Methodologies: The modeling associated with the mass assessment
accommodates variations between neighborhoods, within neighborhoods and includes
consideration of location, age, style, size, finish materials, condition, updating, etc. depending
on the information available. Adjustments and valuation change orders have been made where
necessary during the informal review process prior to the Board.
The Board process differs from mass valuation modeling in that the assessing staff re-appraises
the subject property individually by direct comparison to market transactions. As part of the
review process, staff frequently re-inspects properties to review the accuracy of attributes and
especially current condition which is often a highly important variable. This facet of routine
business has not occurred for the 2020 Board season due to the pandemic. Instead, staff has
engaged the property owner in a candid conversation of the property condition and attributes
which depends a bit on the last interior inspection date.
In cases where the revaluation does not result in a conclusion satisfactory to the appellant, the
appeal process has been outlined. As such, the Local Board depends on active participation
from all parties involved including the property owner, assessing staff and the board members.
All property owners are requested to state their basis of appeal, their opinion of the market
value and informed that they may present information in written form and by testimony
supporting their opinion of value and/or classification.
Reconvene meeting of April 27, 2020 Page 4
Title: 2020 Local Board of Appeal and Equalization
Focal Points for the Board – Agenda as Indicated on Cover Sheet, decisions on:
1. Board Action – Two (2) appeals have not been resolved to a mutual agreement between
the property owner and assessing staff. It is requested that the Board hear and decide the
merits of each case. We have informed each property owner that the Board commonly
allows 5-10 minutes for presentation followed by a 3-5 minute presentation by the
assessing staff. The Board may adjust these time allowances as needed.
2. Board Action – per the DOR direction we have accepted and resolved five (5) appeals after
the April 13 published date. These appeals are highlighted yellow on the reconvene roster.
Should there be additional late appeals in the time between this board packet and the
date of reconvene, we will be requesting their addition to the roster with proviso that we
may not have completed the review due to time constraints.
3. Board Action – for cases where the petitioner has not responded, denied information or
has chosen to withdraw. Six (6) appeals fit this category with one appellant not
responsive to multiple contact attempts; four cases withdrawn after discussions between
appellant and staff; and, one case with specific intent to bypass the Local Board in order
to take up their case before the County Board. The Board is reminded that some cases
end up in this category almost every year and they are properly listed on the board roster
so they are eligible to appeal at the next level.
4. Board Action – Sixteen (16) appeals have been reviewed with the result that the property
owner and assessing staff have reached a mutually acceptable valuation (no
classifications were appealed). It is requested that the resolution for each parcel be read
into the record after which the Board may take one group action to affirm the mutually
agreed upon valuations.
Following your decision, each property owner will be notified via letter of the Board action and
to remind them that they are eligible to appeal to the County Board. The Hennepin County
Board of Appeal and Equalization begins June 15, 2020. An application is requested by the
County no later than May 20th. To appear before the County Board, all appellants must first
have appealed to the St. Louis Park Board of Appeal and Equalization. Property owners may
also appeal directly to the Minnesota State Tax Court.
Thank you for serving on the Board.
Prepared by: St. Louis Park Assessing Staff
Cory Bultema, city assessor
Reconvene meeting of April 27, 2020 Page 5
Title: 2020 Local Board of Appeal and Equalization
Tab Summary
Background and Focal Points for the Board
Tab 1: Overview of All Appeals for Board Action
(the final roster update will be available to the Board for the meeting)
Tab 2: Snook Appeal – Staff Report
(owner did not supply materials for the Board report)
Tab 3: Roche Appeal – Staff Report
(owner did not supply materials for the Board report)
Roster - City of St. Louis Park Local Board of Appeal & Equalization - Reconvene April 27, 2020
Contact AFTER published date of the Board -- added per DOR Directive Reference 2020 Appealed Assessing Owner Board
Name Property Address Property ID # 2019 Value Classification 2020 Value Revaluation Indicated Action
Thomas Snook 3725 Huntington Ave S 06-028-24-44-0170 $718,400 R-Single Family - H $730,700 $680,000 Appeal
Edward Roche 7414 22nd St W #103 08-117-21-21-0003 $98,600 X-Condominium - RH $118,100 Sustain Appeal
Karin Larson 320 Ford Rd #8 01-117-22-11-0035 $142,100 X-Condominium - H $157,100 Sustain No Response
MMP (by representative) 5901 Wayzata Blvd 04-117-21-32-0088 $9,032,000 Commercial-Hotel $9,032,000 Sustain Withdraw
36 Park, LLC 3601 Park Center Blvd 06-028-24-33-0019 $44,500,000 Apartment $47,671,000 Sustain Acknowledge
Brenda Rosenhamer 4262 Wooddale Ave 07-028-24-31-0125 $368,300 R-Single Family Non $379,700 Sustain Withdraw
HSSLP, LLC (by representative) 5305 Wayzata Blvd 30-029-24-32-0025 $11,201,000 Commercial-Hotel $11,668,000 Sustain Withdraw
RISLP, LLC (by representative) 5075 Wayzata Blvd 30-029-24-32-0029 $11,880,000 Commercial-Hotel $11,880,000 Sustain Withdraw
MMP (by representative) 1400 Zarthan Ave S 04-117-21-32-0089 $7,420,000 Commercial-Hotel $7,420,000 $6,910,000 Agree
Richard Harrison 1550 Zarthan Ave S #506 04-117-21-32-0174 $339,800 X-Condominium - H $332,000 $310,000 Agree
Paul Bischel 3700 Glenhurst Ave 06-028-24-44-0009 $491,400 R-Single Family - H $517,500 $491,400 Agree
William Kordaris 3727 Inglewood Ave S 06-028-24-44-0110 $289,700 R-Single Family - H $299,800 $279,000 Agree
Brent LaMar 2061 Utah Ave S 07-117-21-11-0018 $431,000 R-Single Family- H $440,000 $405,000 Agree
Matthew Delisle 4272 Wooddale Ave 07-028-24-31-0128 $411,600 R-Single Family - H $423,600 $395,000 Agree
James Malisow 2819 Aquila Ave S 07-117-21-43-0038 $462,000 R-Single Family - H $481,800 $450,000 Agree
Richard Cohen 2222 Oregon Ct 08-117-21-21-0350 $225,200 Y-Townhouse - H $228,000 $216,600 Agree
Lauren Sticha 2901 Georgia Ave S 08-117-21-44-0215 $283,700 R-Single Family - H $299,600 $288,600 Agree
David Krocak 3246 Sumter Ave S 17-117-21-23-0015 $322,000 R-Single Family - H $324,000 $307,000 Agree
Christine Iverson 3508 Quebec Ave S 17-117-21-32-0090 $648,100 R-Single Family - H $707,100 $680,000 Agree
Dennis Dummer 2940 Flag Ave S 18-117-21-22-0008 $285,000 R-Single Family - H $310,300 $300,000 Agree
Abraham Jungbauer 7806 Cambridge St 20-117-21-22-0112 $492,400 R-Single Family - H $528,000 $470,000 Agree
Gabriel Torrison 4036 Webster Ave S 21-117-21-24-0125 $333,000 R-Single Family - H $319,700 $278,000 Agree
Jesse Forsell 2320 Parklands Rd 31-029-24-12-0051 $486,900 R-Single Family - H $466,600 $440,000 Agree
Jason Tanker 2607 Inglewood Ave S 31-029-24-41-0104 $582,300 R-Single Family - H $620,500 $582,300 Agree
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 6
2020 Local Board of Appeal and Equalization
Thomas Snook
Andrea H. Snook
Thomas C. Snook
3725 Huntington Ave S
06-028-24-44-0170
This report is not an appraisal as defined in M.S. § 82B.02 (subd.3) nor does it comply with the Uniform Standards of
Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is
prohibited and unlawful. The author does not represent this to be an appraisal and is not responsible for any inappropriate use.
It is a report of public records using a mass appraisal technique.
2020 Assessed Value: $730,700
Recommendation: $680,000
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 7
2020 Board of Appeal and Equalization Thomas Snook
City of St. Louis Park
Assessing Department
2020 Local Board of Appeal and Equalization
Staff Report
Thomas Snook
Property Owner(s):
Property Address:
PID #:
Thomas C. Snook
Andrea H. Snook
3725 Huntington Ave S
06-028-24-44-0170
Market Value
Assessment Year 2020
Assessment Year 2019
Assessment Year 2018
$730,700
$718,400
$650,400
Sale: July 1, 1998 - 238,000 (01 - Warranty Deed)
Assessor Recommendation:
$680,000
Appraiser: Last Inspection Date:
LC September 5, 2018
Comments:
The subject property is located in the Minikahda Vista neighborhood and is considered to be in
very good condition based on numerous additions and renovations.
Improvements to the subject property include additions to the side and rear of the home in 2007
which included remodeling of the kitchen, master bedroom and bathroom, second floor laundry
room and a new 2 car detached garage. In 2018 the basement was finished with a family room,
recreation room, and craft room with custom built-ins throughout.
Four comparable sales were selected and analyzed. The comparable sales are located within the
subject’s competitive market area and bracket the subject in size. Comparable sale 1, 2 & 3 are
considered the best indicators of value based on their similarities in size and quality of finishing.
Comparable 4 was chosen based on its proximity to the subject. This comparable has a much
smaller footprint and inferior quality finishing.
Based on our analysis, we recommend a reduction of value from $730,700 to $680,000.
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 8
Subject Data Summary
2020 Board of Appeal and Equalization Thomas Snook
PID #: 06-028-24-44-0170
Property Address: 3725 Huntington Ave S
St. Louis Park, MN 55416
Multiple Address: No
Lot/Block: 000/002
Addition: West Minikahda
Legal(120): N 19 50&100 FT OF LOT 16 AND S 37 50&100
FT OF LOT 17
Owner(s): Thomas C Snook
Andrea H Snook
Property Classification: Residential - Homestead
2020 EMV: 730,700
2019 EMV: 718,400
2018 EMV: 650,400
Last Sale: 7/1/1998 - 238,000 - Warranty Deed - 01
Lot Size: 7,702 Sq.Ft. / Acres
Zoning: R2
Dwelling Type: Single Family
Style: Two Story
Bedrooms: 5
Baths: 3
Actual Year Built: 1940
Gross Building Area: 2,472
Basement Area: 1,166
Bsmt Finished %: 75
Garage #1: 2 Car Detached
Garage #2: None
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 9
Additional Subject Photos
2020 Board of Appeal and Equalization Thomas Snook
Front View
Rear View
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Title: 2020 Local Board of Appeal and Equalization Page 10
Additional Subject Photos
2020 Board of Appeal and Equalization Thomas Snook
Garage
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Title: 2020 Local Board of Appeal and Equalization Page 11
Sales Comparables
2020 Board of Appeal and Equalization Thomas Snook
Item Subject Comparable 1 Comparable 2 Comparable 3
PID 0602824440170 0602824440180 0602824440043 0702824240126
Address 3725 Huntington Ave S 3726 Huntington Ave S 3641 Huntington Ave S 4037 Raleigh Ave S
Weight 75
Neighborhood 0027 0027 0027 0027
District 13 13 13 13
Sale Price $238,000 $750,000 $615,000 $680,000
Sale Date 07/01/1998 10/29/2018 07/15/2019 01/11/2019
Cash Equivalent
Year / Version 2020 / 1 2019 / 1 2020 / 1 2019 / 1
Price Per Sq. Ft. $96.28 $243.35 $336.62 $347.65
Dwelling Type Single Family Single Family Single Family Single Family
Style Two Story 1 1/2 1 1/2 Two Story
Property Area 7,702 10,132 6,707 5,748
Actual Age 1940 1942 1935 1945
Effective Age
Quality Class
1st Floor Area 1,166 1,769 1,385 1,092
Total GBA 2,472 3,082 1,827 1,956
Finished Area 3,347 4,586 2,506 2,388
Basement Area 1,166 1,769 905 864
Basement Finished (%) 75% 85% 75% 50%
1st Floor Clear Ht
Total Bedrooms 5 7 3 4
Total Bathrooms 3 4 3 4
Garage 1 Floor Area 528 681 440 572
Garage 1 # of Cars 2 2 2 2
Garage 1 Placement Detached Attached Detached Detached
Total # of Cars 2 2 2 2
Walkout Type Egress Egress
Air Conditioning Central Central Central Central
Pool Area-Total
Fireplaces 3 1 1 2
Deck Area-Total 384 140 150
Porches 168
Dormer Length 6 12
River
Lake
Influences
Subject Value
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 12
Sales Comparables
2020 Board of Appeal and Equalization Thomas Snook
Item Subject Comparable 4
PID
Address
Weight
0602824440170
3725 Huntington Ave S
0602824440168
3735 Huntington Ave S
71
Neighborhood 0027 0027
District 13 13
Sale Price $238,000 $545,000
Sale Date 07/01/1998 01/04/2019
Cash Equivalent $540,000
Year / Version 2020 / 1 2019 / 1
Price Per Sq. Ft. $96.28 $334.37
Dwelling Type Single Family Single Family
Style Two Story Two Story
Property Area 7,702 8,100
Actual Age 1940 1941
Effective Age
Quality Class
1st Floor Area 1,166 698
Total GBA 2,472 1,615
Finished Area 3,347 1,894
Basement Area 1,166 698
Basement Finished (%) 75% 40%
1st Floor Clear Ht
Total Bedrooms 5 4
Total Bathrooms 3 2
Garage 1 Floor Area 528 260
Garage 1 # of Cars 2 1
Garage 1 Placement Detached Attached
Total # of Cars 2 1
Walkout Type Egress
Air Conditioning Central Central
Pool Area-Total
Fireplaces 3 2
Deck Area-Total 126
Porches 141
Dormer Length
River
Lake
Influences
Subject Value
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Title: 2020 Local Board of Appeal and Equalization Page 13
Sales Comparables
2020 Board of Appeal and Equalization Thomas Snook
Comparable 1
Comparable 2
Comparable 3
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Title: 2020 Local Board of Appeal and Equalization Page 14
Sales Comparables
2020 Board of Appeal and Equalization Thomas Snook
Comparable 4
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Title: 2020 Local Board of Appeal and Equalization Page 15
TT SS
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VV BBLL SS NEE EE N VV LLII AA LLTT
HH BBEE GG IIEE LL AA
MM II NN II KKAA TT
Comparables for
3725 Huntington Ave S
Subject
Comparable
Comparable 2
3641 Huntington Ave S
Subject
3725 Huntington Ave S
Comparable 1
3726 Huntington Ave S
Comparable 4
3735 Huntington Ave S
Comparable 3
4037 Raleigh Ave S
500
Feet
2020 Local Board of Appeal and Equalization
Edward & Kimberly Roche
Edward G. Roche
Kimberly Roche
7414 22nd St W 103
08-117-21-21-0003
This report is not an appraisal as defined in M.S. § 82B.02 (subd.3) nor does it comply with the Uniform Standards of
Professional Appraisal Practice. It is intended to be used as a reference only and any use other than its intended use is
prohibited and unlawful. The author does not represent this to be an appraisal and is not responsible for any inappropriate use.
It is a report of public records using a mass appraisal technique.
2020 Assessed Value: $118,100
Recommendation: Sustain $118,100
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 17
2020 Board of Appeal and Equalization Edward & Kimberly Roche
City of St. Louis Park
Assessing Department
2020 Local Board of Appeal and Equalization
Staff Report
Edward & Kimberly Roche
Property Owner(s):
Property Address:
PID #:
Kimberly Roche
Edward G. Roche
7414 22nd St W 103
08-117-21-21-0003
Market Value
Assessment Year 2020 $118,100
Assessment Year 2019 $98,600
Assessment Year 2018 $96,600
Sale: August 29, 2014 - 51,000 (01 - Warranty Deed)
Assessor Recommendation:
Sustain $118,100
Appraiser: Last Inspection Date:
LC September 4, 2018
Comments:
The subject property is located at 7414 22nd St W unit 103 in the Greensboro Condominiums.
The most recent inspection was an exterior viewing on September 4, 2018.
The home is a one level condominium dwelling that is currently classified as relative homestead.
The condo is a garden floor corner unit featuring 930 square feet with two bedrooms, one full
bathroom, living room, standard kitchen and a dining area. The condo also features a one car
detached garage stall. Average finishes with predominately carpet throughout and linoleum in the
kitchen.
There are five (5) comparable sales selected as the best indicator of value for the 2020 assessment.
All comparable sales are located within the subject’s immediate market area. Adjustments have
been applied based on differences in amenities and/or physical characteristics. These adjustments
are market extracted based on paired sales analysis.
The comparable sales selected are considered good indicators of market value, as they share
similar characteristics to the subject in terms of quality/condition, size, design/style and overall
market appeal.
Based on the market data in this report, the appraiser’s recommendation is to sustain the 2020
Assessed value at $118,100.
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 18
Subject Data Summary
2020 Board of Appeal and Equalization Edward & Kimberly Roche
PID #: 08-117-21-21-0003
Property Address: 7414 22nd St W 103
St. Louis Park, MN 55426
Multiple Address: No
Lot/Block: 000/000
Addition: Apartment Ownership No. 0041
Legal(120): APT NO 3 TOGETHER WITH AN UNDIVIDED .743
9108% & .3447542% INTEREST IN THE COMMON
AREAS AND FACILITIES
Owner(s): Kimberly Roche
Edward G Roche
Property Classification: Condominium - Homestead
2020 EMV: 118,100
2019 EMV: 98,600
2018 EMV: 96,600
Last Sale: 8/29/2014 - 51,000 - Warranty Deed - 01
Lot Size: Sq.Ft. / Acres
Zoning:
Dwelling Type: Condo
Style: One Level/Rambler
Bedrooms: 2
Baths: 1
Actual Year Built: 1970
Gross Building Area: 930
Basement Area:
Bsmt Finished %:
Garage #1: 1 Car Detached
Garage #2: None
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Title: 2020 Local Board of Appeal and Equalization Page 19
Additional Subject Photos
2020 Board of Appeal and Equalization Edward & Kimberly Roche
Front View
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 20
Sales Comparables
2020 Board of Appeal and Equalization Edward & Kimberly Roche
Item Subject Comparable 1 Comparable 2 Comparable 3
PID 0811721210003 0811721210010 0811721210012 0811721210059
Address 7414 22nd St W 103 7414 22nd St W 110 7414 22nd St W 112 7412 22nd St W 204
Weight 99
Neighborhood 0006 0006 0006 0006
District GR GR GR GR
Sale Price $51,000 $136,080 $105,000 $131,000
Sale Date 08/29/2014 12/20/2019 07/24/2019 01/10/2019
Cash Equivalent $131,998 $142,315
Year / Version 2020 / 1 2020 / 1 2020 / 1 2019 / 1
Price Per Sq. Ft. $54.84 $140.42 $142.08 $143.32
Dwelling Type Condo Condo Condo Condo
Style One Level/Rambler One Level/Rambler One Level/Rambler One Level/Rambler
Property Area
Actual Age 1970 1970 1970 1970
Effective Age
Quality Class
1st Floor Area 930 940 739 993
Total GBA 930 940 739 993
Finished Area 930 940 739 993
Basement Area
Basement Finished (%)
1st Floor Clear Ht
Total Bedrooms 2 2 1 2
Total Bathrooms 1 1 1 1
Garage 1 Floor Area 240 240 240
Garage 1 # of Cars 1 1 1
Garage 1 Placement Detached Detached Detached
Total # of Cars 1 1 1
Walkout Type
Air Conditioning Wall Wall Wall Wall
Pool Area-Total
Fireplaces
Deck Area-Total 40
Porches
Dormer Length
River
Lake
Influences
Subject Value
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Title: 2020 Local Board of Appeal and Equalization Page 21
Sales Comparables
2020 Board of Appeal and Equalization Edward & Kimberly Roche
Item Subject Comparable 4 Comparable 5
PID
Address
Weight
0811721210003
7414 22nd St W 103
0811721210091
7318 22nd St W 102
0811721210114
7318 22nd St W 311
99
Neighborhood 0006 0006 0006
District GR GR GR
Sale Price $51,000 $107,000 $125,000
Sale Date 08/29/2014 06/10/2019 03/28/2019
Cash Equivalent $135,707
Year / Version 2020 / 1 2020 / 1 2020 / 1
Price Per Sq. Ft. $54.84 $144.79 $136.66
Dwelling Type Condo Condo Condo
Style One Level/Rambler One Level/Rambler One Level/Rambler
Property Area
Actual Age 1970 1970 1970
Effective Age
Quality Class
1st Floor Area 930 739 993
Total GBA 930 739 993
Finished Area 930 739 993
Basement Area
Basement Finished (%)
1st Floor Clear Ht
Total Bedrooms 2 1 2
Total Bathrooms 1 1 1
Garage 1 Floor Area 240 240
Garage 1 # of Cars 1 1
Garage 1 Placement Detached Detached
Total # of Cars 1 1
Walkout Type
Air Conditioning Wall Wall Wall
Pool Area-Total
Fireplaces
Deck Area-Total 40 40
Porches
Dormer Length
River
Lake
Influences
Subject Value
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Title: 2020 Local Board of Appeal and Equalization Page 22
Sales Comparables
2020 Board of Appeal and Equalization Edward & Kimberly Roche
Comparable 1
Comparable 2
Comparable 3
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Title: 2020 Local Board of Appeal and Equalization Page 23
Sales Comparables
2020 Board of Appeal and Equalization Edward & Kimberly Roche
Comparable 4
Comparable 5
Reconvene meeting of April 27, 2020
Title: 2020 Local Board of Appeal and Equalization Page 24
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Meeting: Study session
Meeting date: April 27, 2020
Discussion item: 1
Executive summary
Title: COVID-19 pandemic update
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized Time-Sensitive**
•The purpose of this study session item is to provide an update on the COVID-19 pandemic
primarily related to anticipated financial impacts to the city.
Policy considerations: Is the direction city staff is taking to address anticipated financial impacts
in keeping with council expectations?
Summary: One hour has been allotted for this update. Staff will take about 20 minutes to
provide an update on financial forecasts, with the rest of the time devoted to council questions
and discussion.
This is a very fluid situation and we don’t have all the answers to every scenario currently, but
staff is continually monitoring the financial impacts as a team.
Updates to include the following:
•Revenue updates including recent County board action on property taxes
•Expenditure updates on balancing the potential revenue gaps
•Cash flow updates on capital expenditures
•Up to date reporting on actual costs related to COVID-19 (Personnel time and
supplies/PPE costs)
•Grants
Financial or budget considerations: The chief finance officer will provide an update to the
council related to the budget during the meeting.
Strategic priority consideration: Not applicable.
Supporting documents: None
Prepared by: Tim Simon, chief financial officer
Reviewed by: Nancy Deno, deputy city manager/HR director
Approved by: Tom Harmening, city manager
Meeting: Study session
Meeting date: April 27, 2020
Discussion item: 2
Executive summary
Title: Future study session agenda planning and prioritization
Recommended action: The city council and city manager to set the agenda for the regularly
scheduled study session on May 11, 2020.
Policy consideration: Not applicable.
Summary: This report summarizes the proposed agenda for the regularly scheduled study session
on May 11, 2020.
Also attached to this report is:
- Study session discussion topics and timeline
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Tentative agenda – May 11, 2020
Study session discussion topics and timeline
Prepared by: Debbie Fischer, administrative services office assistant
Reviewed by: Maria Solano, senior management analyst
Approved by: Tom Harmening, city manager
Study session meeting of April 27, 2020 (Item No. 2) Page 2
Title: Future study session agenda planning and prioritization
May 11, 2020.
6:30 p.m. Study session - To be held via videoconference
Tentative discussion items
1.COVID-19 pandemic update – Administrative services (30 minutes)
Staff will provide an update to the city council on the state of the COVID-19 pandemic.
**Due to the COVID-19 emergency declaration, this item is considered essential business and is
categorized as Time-Sensitive**
2.Wooddale petition – Engineering (60 minutes)
Discussion of the April 6, 2020 citizen petition requesting a modification of the approved
project layout for the Southeast Area bikeway improvements. The request is to eliminate the
parking bays on Wooddale Avenue between 44th Street and Morningside Road.
**Due to the COVID-19 emergency declaration, this item is considered essential business and is
categorized as Time-Sensitive**
3.Update from STEP – Administrative Services
Derek Burrows Reise with STEP will be present to provide an update on COVID 19 and its
impacts on their services.
**Due to the COVID-19 emergency declaration, this item is considered essential business and is
categorized as Time-Sensitive**
4.Future study session agenda planning – Administrative services (5 minutes)
Communications/meeting check-in – Administrative services (5 minutes)
Time for communications between staff and council will be set aside on every study session
agenda for the purposes of information sharing.
Study session meeting of April 27, 2020 (Item No. 2) Page 3
Title: Future study session agenda planning and prioritization
Study session discussion topics and timeline
Priority Discussion topic Comments Timeline
1
Prioritizing transit options thru
investments, and engineering
and operations decisions
SS discussion 10/21/19. Next steps: staff reach out to
Metro Transit, bench company, and Met Council rep.
Update – staff met with Metro Transit Dec., 2019
In process
2 Climate crisis TBD
3 Discuss public process
expectations and outcomes
Staff is working on the approach for undertaking this
discussion. June 8, 2020
4
Revisit housing setback, FRA, &
more to maintain and create
more affordable housing
TBD
5 Home-based businesses TBD
6 Public forums at council mtgs 9/23/19 SS. Staff is doing research of other cities. TBD
7 STEP discussion: facilities Discussed on 1/14/19; city, STEP & school toured
Central Community Ctr and continuing discussions TBD
8 Community and neighborhood
sidewalk designations TBD
9
Remove mint & menthol
exemption from existing
flavored tobacco policy
TBD
10
Easy access to nature, across
city, starting w/ low-income
neighborhoods
TBD
11 Conversion therapy ban TBD
12 Changes to sign ordinance TBD
13 WHNC Access Fund *On hold pending direction from school district.*On hold
SEED’s community greenhouse
/resilient cities initiative
On hold until Food Access and Security study is
complete, and recommendations have been made. March 9, 2020
Revitalization of Walker Lake
area
Part of preserving Walker building reports: 8/28/17,
9/25/17, 1/22/18, design study 2/12/18, update
4/23/18, design study updates 8/27/18; SS report
2/11/19; SS discussion 5/28/19, planning commission
to review ordinances for implementation Qtr. 3 & 4
2019; parking ord. in process of council approval;
construction of phase 1 completed; Planning for 2020
phase 2 construction work underway
In process
Crime free ordinance/
affordable housing strategies
Discussed 5/14/18. 1st reading housing trust fund
10/1/18; Other affordable housing strategies/Crime
Free Ordinance – Nov/Dec, 12/10 & 12/17/18 &
1/14/19 council discussion; Certain provisions of crime
free ord. suspended; Work group formed; CFO work
group discussed on 3/25/19; Work group had 1st mtg
in May, two meetings in June, one in July and August.
Meetings on Sept 26, Oct 9, Oct 30, Nov 13, Dec 4.
March 9 and
23, 2020
Meeting: Study session
Meeting date: April 27, 2020
Written report: 3
Executive summary
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as Time-Sensitive**
•None at this time. Public hearing and first reading of ordinance and resolution establishing
the South Cedar Trails HIA is scheduled for May 4.
Policy consideration: Does the city council support the creation of a Housing Improvement
Area for the South Cedar Trails Homeowners Association?
Summary: The city is authorized by the state to establish HIAs as a finance tool for private
housing improvements. An HIA is a defined area within a city where housing improvements are
made and the cost of the improvements are paid in whole or in part from fees imposed on the
properties within the area. The city adopted an HIA policy in 2001 and has previously
established seven HIAs. The South Cedar Trails HIA proposal meets the intent of the city policy.
In April 2020, the South Cedar Trails Homeowners Association (Association) submitted signed
petitions from a majority of owners requesting the city council schedule a public hearing to
establish the HIA and impose fees. Per state statute, cities may only establish an HIA when 50%
or more of the association owners petition the city to do so. As of April 21, petitions have been
received and validated from 88%, or 28 of the 32 owners.
Financial or budget considerations: If approved, he HIA will be funded using an internal loan.
The total project cost, including soft costs is $623,300.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
HIA assessment table prepared by Ehlers
Prepared by: Marney Olson, assistant housing supervisor
Reviewed by: Michele Schnitker, housing supervisor/deputy CD director
Tim Simon, chief financial officer
Karen Barton, community development director
Approved by: Tom Harmening, city manager
Study session meeting of April 27, 2020 (Item No. 3) Page 2
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)
Discussion
Background: The city is authorized by the state to establish HIAs as a finance tool for private
housing improvements. An HIA is a defined area within a city where housing improvements are
made and the cost of the improvements are paid in whole or in part from fees imposed on the
properties within the area. HIAs are typically utilized by multi-family ownership housing
associations, such as townhome and condominium associations. The city adopted an HIA policy
in 2001 and has previously established seven HIAs. The South Cedar Trails HIA proposal meets
the intent of the city policy.
Present considerations: The association first expressed interest in learning about the HIA
process in spring 2019 to assist with financing needed repairs. The association board began
meeting with city staff April 2019. At the spring 2019 association meeting the association voted
32-0 to move forward with the HIA. The association has urgent roof and siding repairs that need
to be completed more quickly due to weather concerns and insurance requirements. With the
tight timeline required the association passed an assessment of $7,000 per unit for the siding
and roofing only.
The association conducted a physical needs assessment and financial plan review, known as a
reserve study, to assist in making decisions related to property improvements. Per the city’s
policy, HIA financial assistance is last resort financing and should not be provided to projects
that have the financial feasibility to proceed without the benefit of HIA financing. The
association’s current reserve does not cover the work needed and the association has been
turned down by Belle Bank and Roya Credit Union for funding.
On March 11, 2020 the city received the associations updated preliminary application for the
HIA. In April 2020, the city and association hosted a virtual meeting to review the HIA process
and walk through the petition that each homeowner received. The South Cedar Trails
Homeowners Association submitted signed petitions from a majority of owners April 14
requesting the city council schedule a public hearing to establish the HIA and impose fees. Per
state statute, cities may only establish an HIA when 50% or more of the association owners
petition the city to do so. As of April 21, petitions have been received and validated from 88%,
or 28 of the 32 owners.
Proposed scope of work scheduled for 2020.
Site work
Remove and replace parking lot.
New landscaping and drainage to include a new French drain system, replacing retaining walls
and new plant materials.
Remove and dispose of existing fence and install new privacy fence.
Garage Doors
Remove and replace 32 garage doors.
Windows
Remove and replace windows in individual units.
Funding: Staff is recommending that the HIA loan be funded using internal funding based on the
amount of the loan. The use of internal funds will earn interest income for the city and decrease
Study session meeting of April 27, 2020 (Item No. 3) Page 3
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)
the cost to the association compared to the cost of issuing bonds. The use of internal funds also
allows owners the ability to pay off the balance of their fee in the future.
The city is protected from financial risk in several ways:
• Repayment of the loan is made through owner’s real estate tax payments.
• In foreclosure events, tax liabilities including special assessments, must be paid by any party
that purchases the unit. In cases of foreclosure, HIA fees have been treated the same as
special assessments.
• There is a 105% debt coverage as shown on the attached fee table.
• A development agreement is required which will provide additional contractual conditions to
ensure financial stability of the association.
Association information: South Cedar Trails is located at 4401 - 4561 Cedar Lake Road.
• The association is comprised of 32 townhomes built in 1977.
• There are 17 units with two bedrooms and 15 units with three bedrooms.
• The 2020 median estimated market value (EMV) is $202,150 and the range of EMV is
$190,300-$216,800.
• 20 of the 32 units (63%) are homesteaded.
The average market value of units in the association should not exceed the maximum home
purchase price for existing homes under the state’s first time home buyer program which is
currently $330,100.
Total loan amount: The total loan amount is $623,300, comprising $598,300 for construction
costs and $25,000 for city administrative, legal and financial costs. The term of the loan and
imposed fees would be 15 years.
South Cedar Trails HIA 15 Years
Breakdown of capital costs
Parking Lot $84,000
Landscaping/drainage $115,500
Fencing $80,850
Garage doors $27,300
Windows $263,070
Contingency (5%) $27,580
Total capital costs $598,300
Breakdown of soft costs
City administrative fee $5,000
Legal fee $15,000
Financial advisor $5,000
Total $25,000
Total project costs $623,300
Preliminary estimates of the fees to be imposed on housing units in the South Cedar Trails
Housing Improvement Area are based on an interest rate of 3.71%. This interest rate is subject
to change based on market conditions.
Study session meeting of April 27, 2020 (Item No. 3) Page 4
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)
Amount to be charged against each housing unit: Fees to be imposed on housing units in the
South Cedar Trails HIA are included in the attached table. Fees are divided evenly among the 32
units with the exception of the portion of the fee allocated to windows, which is based on the
number of windows installed in each unit. The annual fee per unit includes interest on the cost
per unit at an estimated rate of 3.71%. The table also shows the total amount to be paid over
the 15-year period. Finally, the Total Prepayment Fee (principal only) is shown. Housing unit
owners may prepay the total prepayment fee in whole but not in part before July 27, 2020 with
no interest. Prepayments received in future years must include interest.
Filing an objection and veto period: Before the ordinance is adopted or at the hearing in which
it is to be adopted, the owner of a housing unit in the proposed HIA may file a written objection
with the city clerk asserting that the owners’ property should not be included in the HIA or
should not be subjected to a housing improvement fee and objecting to the inclusion of the
housing unit in the HIA, for the reason that the property would not benefit from the proposed
improvements.
If residents of 45 percent or more of the housing units in the HIA file an objection to the
ordinance with the city clerk before the effective date of the ordinance, the ordinance will not
become effective.
Next steps: The next step in the HIA process is the public hearing scheduled for May 4.
South Cedar Trails HIA timeline:
May 4, 2020 Public hearing, first reading of ordinance and resolution
May 18, 2020
By May 23, 2020
By June 17, 2020
Second reading/adoption of ordinance and resolution
Mail summary of ordinance to unit owners.
Mail ordinance to Commissioner of Revenue.
July 2, 2020 Veto period ends
July 27, 2020 Prepayments due
August 3, 2020 EDA loan and development agreement approved
August 4, 2020 Association can move forward with construction
Ehlers's prepared assessment allocation
(Assumes Loan Closing August 1, 2020)15 Years
Common Costs $335,230
Window Costs $263,070
Prepaid Assessments $0
Total Project Costs $598,300
Rounding $0
Capitalized Interest $0
City Admin Fee $5,000
Soft Costs $20,000
Total Soft and Loan Costs $25,000
Total Loan Amount $623,300
Term (years)15
Average Coupon 3.71%
Average Annual Debt Service $52,682
Required Coverage (105%) $55,316
Total Units 32
Breakdown of Capital Costs
Parking Lot $84,000
Landscaping/Drainage $115,500
Fencing $80,850
Garage Doors $27,300
Windows $263,070
Contingency (5%)$27,580
TOTAL $598,300
Breakdown of Soft Costs
Legal Fees $15,000
Financial Advisor $5,000
TOTAL $20,000
South Cedar Trails HIA
Study session meeting of April 27, 2020 (Item No. 3)
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)Page 5
City of St. Louis Park
Housing Improvement Area - South Cedar Trails HIA
Assessment Allocation
Association Unit No.
Percentage
Interest
Total Common Area
Construction Cost
Total Financing &
Soft Costs
Total Construction
Cost for 2 Windows
Total Construction
Cost for 3 Windows
TOTAL COSTS
(PREPAYMENT
AMOUNT)
* Annual Fee
(105% of Total
Costs)
Total P & I Paid Per
Unit (105%) - Non
prepaid only
4401 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4405 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4409 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4413 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4417 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4421 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4425 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4429 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4433 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4437 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4441 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4445 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4449 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4453 0.03125 $10,476 $781 $1,934 $0 $13,191 $1,220.62 $18,309.34
4457 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4461 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4501 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4505 0.03125 $10,476 $781 $0 $0 $11,257 $1,041.66 $15,624.95
4509 0.03125 $10,476 $781 $0 $0 $11,257 $1,041.66 $15,624.95
4513 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4517 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4521 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4525 0.03125 $10,476 $781 $5,580 $0 $16,837 $1,558.00 $23,369.98
4529 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4533 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4537 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4541 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4545 0.03125 $10,476 $781 $0 $11,147 $22,404 $2,073.13 $31,096.96
4549 0.03125 $10,476 $781 $8,538 $0 $19,795 $1,831.71 $27,475.68
4553 0.03125 $10,476 $781 $0 $0 $11,257 $1,041.66 $15,624.95
4557 0.03125 $10,476 $781 $5,580 $0 $16,837 $1,558.00 $23,369.98
4561 0.03125 $10,476 $781 $0 $0 $11,257 $1,041.66 $15,624.95
GRAND TOTAL 100.00%$335,230.00 $25,000.00 $107,012.00 $156,058.00 $623,300.00 $57,675.93 $865,139.01
SOUTH CEDAR TRAILS HOUSING IMPROVEMENT AREA
South Cedar
Trails
Study session meeting of April 27, 2020 (Item No. 3)
Title: South Cedar Trails Homeowners Association Housing Improvement Area (HIA)Page 6
Meeting: Study session
Meeting date: April 27, 2020
Written report: 4
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
Nancy Deno, deputy city manager/HR director
Approved by: Tom Harmening, city manager
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Actual $2,899 $6,184 $8,981
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 Executive summary
Title: March 2020 monthly financial report
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as a Required Action**
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 25% of
the annual budget at the end of March. General fund expenditures were at 21.5% of the
adopted annual budget through March.
License and permit revenues are at 45.5% of budget through March. Over 85% of the business
and liquor license revenue has already been received, which is typical of prior years. Permit
revenue is at 35% through March. The effect of COVID-19 is yet to be determined, but we are
tracking these revenues against the anticipated impacts. Organized recreation expenditures
are at 30% of budget because the full annual community education contribution of $187,400
was paid to the school district in February, which is consistent with prior years.
Monthly Expenditures - General Fund
Summary of Revenues & Expenditures - General Fund As of March 31, 2020 20202020201820182019201920202020Balance YTD Budget Budget Audited Budget Unaudited Budget YTD Mar Remaining to Actual %General Fund Revenues: General Property Taxes25,705,886$ 26,597,928$ 26,880,004$ 26,952,306$ 28,393,728$ 28,393,728$ 0.00% Licenses and Permits3,924,648 4,001,644 4,103,424 5,264,659 4,660,811 2,119,725 2,541,086 45.48% Fines & Forfeits269,200 282,146 279,700 274,340 280,000 14,880 265,120 5.31% Intergovernmental1,864,877 2,006,435 1,760,900 1,761,763 1,760,082 409,404 1,350,678 23.26% Charges for Services2,162,410 2,180,589 2,187,319 2,154,501 2,273,824 237,388 2,036,436 10.44% Rents & Other Miscellaneous1,318,037 1,427,744 1,367,012 1,500,867 1,456,102 393,532 1,062,570 27.03% Transfers In1,929,090 1,929,076 1,999,877 2,012,706 2,038,338 495,585 1,542,753 24.31% Investment Earnings 160,000 251,494 180,000 204,768 210,000 210,000 0.00% Other Income40,950 35,802 31,300 57,274 621,280 208,656 412,624 33.58% Use of Fund Balance *523,835 298,156 230,026 - 0.00%Total General Fund Revenues37,898,933$ 38,712,858$ 39,087,692$ 40,413,211$ 41,694,165$ 3,879,169$ 37,814,996$ 9.30%General Fund Expenditures: General Government: Administration 1,341,606$ 1,340,282$ 1,837,620$ 1,673,834$ 1,868,599$ 341,904$ 1,526,695$ 18.30% Finance 978,752 964,036 1,034,199 1,078,148 1,124,045 257,959 866,086 22.95% Assessing 759,865 710,715 772,746 751,737 808,171 181,498 626,673 22.46% Human Resources 796,666 735,050 805,620 756,767 823,209 182,192 641,017 22.13% Community Development 1,479,911 1,559,721 1,502,521 1,515,672 1,571,894 363,923 1,207,971 23.15% Facilities Maintenance 1,162,342 1,223,109 1,170,211 1,209,474 1,265,337 250,038 1,015,299 19.76% Information Resources 1,589,432 1,526,028 1,674,937 1,474,604 1,709,255 419,356 1,289,899 24.53% Communications & Marketing 755,940 829,732 805,674 786,448 828,004 172,280 655,724 20.81% Community Outreach 27,637 12,085 0.00%Total General Government8,892,151$ 8,900,758$ 9,603,528$ 9,246,684$ 9,998,514$ 2,169,151$ 7,829,363$ 21.69% Public Safety: Police 9,930,681$ 9,877,014$ 10,335,497$ 10,469,594$ 10,853,821$ 2,514,129$ 8,339,692$ 23.16% Fire Protection 4,657,973 4,630,520 4,813,078 4,754,524 5,040,703 1,129,912 3,910,791 22.42% Building 2,544,762 2,295,910 2,555,335 2,430,473 2,696,585 570,294 2,126,291 21.15%Total Public Safety17,133,416$ 16,803,444$ 17,703,910$ 17,654,590$ 18,591,109$ 4,214,334$ 14,376,775$ 22.67% Operations: Public Works Administration 230,753$ 208,050$ 290,753$ 214,436$ 273,318$ 72,927$ 200,391$ 26.68% Public Works Operations 3,091,857 2,998,935 3,111,481 3,098,894 3,331,966 618,046 2,713,920 18.55% Vehicle Maintenance 1,253,367 1,210,279 1,242,236 1,266,537 1,278,827 311,778 967,049 24.38% Engineering 525,834 552,432 570,377 583,453 551,285 63,553 487,732 11.53%Total Operations5,101,811$ 4,969,696$ 5,214,847$ 5,163,320$ 5,435,396$ 1,066,305$ 4,369,091$ 19.62% Parks and Recreation: Organized Recreation 1,582,490 1,499,780 1,579,569 1,498,237 1,637,002 488,158 1,148,844 29.82% Recreation Center 1,860,755 2,004,937 1,949,657 2,041,386 2,061,394 369,980 1,691,414 17.95% Park Maintenance 1,830,530 1,866,744 1,833,297 1,799,075 1,906,363 372,235 1,534,128 19.53% Westwood Nature Center 622,346 599,704 643,750 612,266 748,683 144,317 604,366 19.28% Natural Resources 559,662 376,359 484,784 429,409 504,143 45,910 458,233 9.11%Total Parks and Recreation6,455,783$ 6,347,524$ 6,491,057$ 6,380,372$ 6,857,585$ 1,420,600$ 5,436,985$ 20.72% Other Depts and Non-Departmental: Racial Equity and Inclusion -$ -$ -$ 4,592$ 314,077$ 68,997$ 245,080$ 21.97% Sustainability26,283 497,484 41,671 455,813 8.38% 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$ 110,668$ 700,893$ 13.64%Total General Fund Expenditures37,898,933$ 38,248,388$ 39,087,692$ 38,591,498$ 41,694,165$ 8,981,057$ 32,713,108$ 21.54%*Primarily related to E911 expenditures from restricted fund balance.Study session meeting of April 27, 2020 (Item No. 4) Title: March 2020 monthly financial reportPage 2
Budget to Actual - Enterprise FundsAs of March 31, 2020 Current BudgetMar Year To DateBudget Variance% of BudgetCurrent BudgetMar Year To DateBudget Variance% of BudgetCurrent BudgetMar Year To DateBudget Variance% of BudgetCurrent BudgetMar Year To DateBudget Variance% of BudgetOperating revenues: User charges 7,472,931$ 611,840$ 6,861,091$ 8.19% 7,897,086$ 746,193$ 7,150,893$ 9.45% 3,510,090$ 296,796$ 3,213,294$ 8.46% 3,065,882$ 340,119$ 2,725,763$ 11.09% Other 533,242 424,756 108,486 79.66% 43,000 3,242 39,758 7.54% 169,100 169,100 0.00%- - Total operating revenues8,006,173 1,036,596 6,969,577 12.95% 7,940,086 749,435 7,190,651 9.44% 3,679,190 296,796 3,382,394 8.07% 3,065,882 340,119 2,725,763 11.09%Operating expenses: Personal services1,521,345 376,268 1,145,077 24.73% 809,868 215,808 594,060 26.65% 539,901 102,244 437,657 18.94% 896,367 150,293 746,074 16.77% Supplies & non-capital268,300 79,914 188,386 29.79% 72,500 13,064 59,436 18.02% 247,550 47,411 200,139 19.15% 12,500 12,500 0.00% Services & other charges2,073,702 301,517 1,772,185 14.54% 4,621,847 1,464,118 3,157,729 31.68%2,920,580 407,738 2,512,843 13.96% 329,946 73,675 256,271 22.33% Depreciation * Total operating expenses3,863,347 757,700 3,105,647 19.61% 5,504,215 1,692,990 3,811,225 30.76% 3,708,031 557,393 3,150,638 15.03% 1,238,813 223,969 1,014,844 18.08%Operating income (loss)4,142,826 278,896 3,863,930 6.73% 2,435,871 (943,555) 3,379,426 -38.74% (28,841) (260,597) 231,756 903.57% 1,827,069 116,151 1,710,918 6.36%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 75,061 3,662,265 2.01% 2,361,871 (976,691) 3,338,562 -41.35% (39,341) (260,597) 221,256 662.41% 1,797,819 110,064 1,687,755 6.12%Transfers inTransfers out(638,635) (159,659) (478,976) 25.00% (873,785) (218,446) (655,339) 25.00% (248,289) (62,072) (186,217) 25.00% (342,130) (85,532) (256,598) 25.00%NET INCOME (LOSS)3,098,691 (84,598) 3,183,289 -2.73% 1,488,086 (1,195,137) 2,683,223 -80.31% (287,630) (322,670) 35,040 112.18% 1,455,689 24,532 1,431,157 1.69%Items reclassified to bal sht at year end: Capital Outlay(2,649,356) (95,052) (2,554,304) 3.59% (1,411,750) (88,310) (1,323,440) 6.26%- - - (3,245,049) (88,310) (3,156,739) 2.72%Revenues over/(under) expenditures449,335 (179,650) 628,985 76,336 (1,283,447) 1,359,783 (287,630) (322,670) 35,040 (1,789,360) (63,778) (1,725,582) *Depreciation is recorded at end of year (non-cash item).Water SewerSolid WasteStorm WaterStudy session meeting of April 27, 2020 (Item No. 4) Title: March 2020 monthly financial reportPage 3
Meeting: Study session
Meeting date: April 27, 2020
Written report: 5
Executive summary
Title: First quarter investment report (January – March 2020)
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as a Required Action**
Policy consideration: Reporting on investments quarterly is part of our financial management
policies.
Summary: The quarterly investment report provides an overview of the city’s
investment portfolio, including the types of investments held, length of maturity and yield.
Financial or budget considerations: The total portfolio value at March 31, 2020 is $53.9
million. Approximately $35.5 million is invested in longer term securities that include U.S.
Treasury notes, Federal agency bonds, municipal debt securities and certificates of deposit.
The remaining $18.4 of the portfolio is held in money market accounts for bond construction
project payments and cash flow needs between property tax settlements. Due to the unknown
impacts of COVID-19, we are working on keeping more funds liquid for cash flow needs. The
overall yield to maturity decreased to 1.57% from 1.78% and 2.09% the prior two quarters as
interest rates declined.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Investment portfolio summary
Prepared by: Darla Monson, accountant
Reviewed by: Tim Simon, chief financial officer
Nancy Deno, deputy city manager/HR director
Approved by: Tom Harmening, city manager
Study session meeting of April 27, 2020 (Item No. 5) Page 2
Title: First quarter investment report (January – March 2020)
Discussion
Background: The city’s investment portfolio is focused on cash flow needs and investment in
longer term securities in accordance with Minnesota Statute 118A and the city’s investment
policy objectives of: 1) preservation of capital; 2) liquidity; and 3) return on investment.
Present considerations: The portfolio value decreased by approximately $27 million in the first
quarter to $53.9 million at March 31, 2020 from $81 million at Dec. 31, 2019. The decrease was
primarily in money market accounts and short-term commercial paper securities that matured
for cash flow requirements. A large amount of cash was needed in the first quarter including
$6.1 million for the Feb. 1 debt service payments, $3.3 million for the Feb. 1 pay as you go TIF
note payments and the expenditure of bond proceeds for the continued construction work at
the nature center, in addition to the normal cash requirements for payroll and operating
expenses. Another $8.6 million of cash was expended on Feb. 1, 2020 for the planned refunding
of the 2010D fire station bonds.
The overall yield of the portfolio decreased again in the first quarter to 1.57%, compared to
1.78% at the end of 2019 and 2.15% one year ago. This is the combined yield including both
cash held in money market accounts and long-term investments, and interest rates on both
started to decline in the second half of 2019. Cities will typically use a benchmark such as the
two-year Treasury (.23% on March 31, 2020 compared to 1.58% on Dec. 31, 2019) or a similar
measure for yield comparison of their overall portfolio.
There was $18.4 million in money market accounts at the end of March, which includes $11.8
million of bond proceeds for the nature center, connect the park, SCADA and other utility
projects. Due to the unknown impacts of COVID-19, cash available for payroll and on-going
operating expenses is being carefully monitored by staff pending receipt of the tax settlements
from the county in early July and August. Money market rates have decreased over 1% from a
year ago and are presently between .7% - 1.27%.
The remaining $35.5 million of the portfolio is invested in longer term securities which include
municipal bonds ($2.3 mil), Federal agency bonds ($10.5 mil) and U.S. Treasury notes ($22.2
mil) and two CD’s ($447,000). Municipal bonds are issued by states, local governments, or
school districts to finance special projects. Agency bonds are issued by government agencies
such as the Federal Home Loan Bank and Fannie Mae and can have a call date provision where
they can be called prior to final maturity. Rates on agency bonds and treasury notes purchased
for the portfolio during the quarter ranged from .85 – 1.66%. Less than a year ago, rates on
treasuries were over 2.5%.
This table is a summary of the City’s portfolio at March 31, 2020:
12/31/19 3/31/20
<1 Year 66% 47%
1-2 Years 12% 18%
2-3 Years 13% 17%
3-4 Years 5% 7%
>4 Years 4% 11%
12/31/19 3/31/20
Money Markets/Cash $33,305,952 $18,438,301
Commercial Paper $12,960,910 $0
Certificates of Deposit $1,407,118 $447,115
Municipal Debt $2,320,868 $2,327,170
Agencies/Treasuries $31,014,426 $32,661,373
City of St. Louis Park
Investment Portfolio Summary
March 31, 2020
Institution/Broker Investment Type CUSIP Maturity Date
Yield To
Maturity Par Value
Market Value at
3/31/2020
Estimated Avg
Annual Income
4M Liquid Asset Money Market 1.15%569,692 569,692 6,551
4M Plus Money Market 1.27%2,555,192 2,555,192 32,451
4M Liquid Asset Money Market (bond proceeds)1.15%746,578 746,578 8,586
UBS Institutional Money Market 0.70% 3,547,163 3,547,163 24,830
UBS Institutional Money Market (bond proceeds)0.70% 11,019,676 11,019,676 77,138
18,438,301
PFM CD - World's Foremost Bk NE 9159919E5 08/06/2020 2.30% 200,000 200,554 4,600
PFM CD - Comenity Cap Bk UT 20033AND4 10/13/2020 2.00% 245,000 246,561 4,900
447,115
PFM Muni Debt - Connecticut State Txble GO Bonds 20772JKN1 10/15/2020 1.78% 1,000,000 1,006,240 17,800
PFM Muni Debt - California State Txble GO Bonds 13063DGA0 04/01/2021 2.80% 450,000 456,453 12,600
PFM Muni Debt - Minnesota State Txble GO Bonds 60412ASE4 08/01/2022 1.76% 200,000 208,152 3,520
PFM Muni Debt - San Jose CA Txbl GO Bonds 798135H51 09/01/2023 2.13% 650,000 656,325 13,845
2,327,170
PFM FNMA 3135G0T60 07/30/2020 1.60%1,250,000 1,255,425 20,000
PFM US Treasury Note 912828L32 08/31/2020 1.09% 600,000 603,186 6,540
PFM FHLB 3130ACE26 09/28/2020 1.48% 575,000 578,117 8,510
PFM FHLMC 3137EAEJ4 09/29/2020 1.69% 530,000 532,899 8,957
PFM FHLMC 3137EAEK1 11/17/2020 1.91% 800,000 808,336 15,280
PFM US Treasury Note 912828N48 12/31/2020 1.02% 150,000 151,910 1,530
PFM US Treasury Note 912828N48 12/31/2020 1.12% 750,000 759,548 8,400
PFM Freddie Mac 3137EAEL9 02/16/2021 2.47% 800,000 813,392 19,760
PFM Fannie Mae 3135G0U27 04/13/2021 2.55% 500,000 511,140 12,750
PFM US Treasury Note 912828Q78 04/30/2021 1.86% 250,000 253,330 4,650
PFM US Treasury Note 912828Q78 04/30/2021 1.87% 675,000 683,991 12,623
PFM US Treasury Note 912828R77 05/31/2021 2.02% 1,600,000 1,623,872 32,320
PFM Fannie Mae 3135G0U35 06/22/2021 2.76% 700,000 720,139 19,320
PFM FHLB Global 3130A8QS5 07/14/2021 1.25% 750,000 757,590 9,375
PFM US Treasury Note 912828D72 08/31/2021 1.73% 650,000 666,608 11,245
PFM US Treasury Note 912828D72 08/31/2021 1.85% 1,150,000 1,179,383 21,275
PFM FHLB 3130AF5B9 10/12/2021 3.02% 750,000 780,068 22,650
PFM US Treasury Note 912828T67 10/31/2021 1.72% 700,000 711,704 12,040
PFM US Treasury Note 912828T67 10/31/2021 1.64% 575,000 584,614 9,430
PFM US Treasury Note 912828T67 10/31/2021 1.85% 200,000 203,344 3,700
PFM Fannie Mae 3135G0U92 01/11/2022 2.65% 400,000 415,476 10,600
PFM US Treasury Note 912828X47 04/30/2022 2.12% 500,000 517,110 10,600
PFM US Treasury Note 912828X47 04/30/2022 2.18% 800,000 827,376 17,440
PFM US Treasury Note 912828X47 04/30/2022 2.69% 1,300,000 1,344,486 34,970
PFM US Treasury Note 912828TJ9 08/15/2022 2.76% 430,000 443,975 11,868
PFM US Treasury Note 912828N30 12/31/2022 2.78% 925,000 971,898 25,715
PFM US Treasury Note 912828N30 12/31/2022 2.51% 2,550,000 2,679,285 64,005
PFM US Treasury Note 912828N30 12/31/2022 2.55% 1,675,000 1,759,923 42,713
PFM FHLB 3130AJ7E3 02/17/2023 1.44% 620,000 636,653 8,928
PFM US Treasury Note 912828R69 05/31/2023 2.53% 1,000,000 1,040,598 25,300
PFM US Treasury Note 912828R69 05/31/2023 1.83% 350,000 365,616 6,405
PFM US Treasury Note 912828T91 10/31/2023 1.55% 75,000 76,948 1,163
PFM US Treasury Note 912828T91 10/31/2023 1.48% 450,000 472,680 6,660
PFM Fannie Mae 3135G0V34 02/05/2024 2.58% 475,000 510,943 12,255
PFM FHLB 3130AFW94 02/13/2024 2.58% 500,000 538,530 12,900
PFM US Treasury Note 912828XX3 06/30/2024 1.55% 600,000 644,716 9,300
PFM US Treasury Note 912828XX3 06/30/2024 1.66% 1,600,000 1,719,241 26,560
PFM US Treasury Note 912828XX3 06/30/2024 0.85% 260,000 277,987 2,210
PFM US Treasury Note 912828XX3 06/30/2024 1.36% 350,000 374,213 4,760
PFM US Treasury Note 912828XX3 06/30/2024 1.66% 1,150,000 1,217,796 19,090
PFM FHLB 3130AGWK7 08/15/2024 1.55% 175,000 182,415 2,713
PFM Fannie Mae 3135G0X24 01/07/2025 1.69% 650,000 682,299 10,985
PFM Freddie Mac 3137EAEP0 02/12/2025 1.52% 750,000 782,618 11,400
32,661,373
GRAND TOTAL 53,873,959 845,714
Current Portfolio Yield To Maturity 1.57%
Study session meeting of April 27, 2020 (Item No. 5)
Title: First quarter investment report (January – March 2020)Page 3