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HomeMy WebLinkAboutWK - April 26, 2011 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US City Council Workshop Tuesday, April 26, 2011 Conference Rooms A & B 1. Call to Order - 6:00 p.m. 2. Joint Meeting with Planning & Zoning Commission 3, 2011-2012 Council Goal Discussion - Administration 4. 2011 Budget Implementation Progress & March 2011 Investment Report - Administration 5, 2012-2016 CIP Development Discussion - Administration 6. 2012 Budget Development Discussion - Administration 7, Other Topics 8, Adjournment C I T Y o F @ NDOVE 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER,MN.US TO: Mayo, aM Councilm,mb= ~ CC: Jim Dickinson, City Administrator FROM: Courtney Bednarz, City Planne~ SUBJECT: Joint Meeting with Planning & Zoning Commission DATE: April 26, 2011 INTRODUCTION This item is intended to be an open discussion between the Council and Planning Commission that occurs on an annual or semi-annual basis, DISCUSSION Some Potential topics for discussion include: 1. Overview/update from Planning Commission Chair Dean Daninger 2, Public Hearing Process 3, Planning Commission Discussion/Recommendations 4, Council Direction/Communication between Planning Commission and Council 5, Economic Development Authority Redevelopment Ideas 6, Other ACTION REOUESTED This is a discussion that will occur at the meeting, Q) 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US TO: Mayor and Council Members FROM: Jim Dickinson, City Administrator SUBJECT: 2011-2012 Council Goal Discussion DATE: April 26, 2011 INTRODUCTION At the February workshop, the Council decided to independently submit City goals. Those goals we submitted and assembled for the March workshop and deferred to April for further discussion DISCUSSION Administration has assembled the submitted Councilmember goals and arranged the submissions into an attached document in the following categories: 1. Fiscal Goals 2, CommerciallResidential Development/Redevelopment Goals 3, Collaboration Goals 4, Service Delivery Goals 5. Livability/Image Goals Also attached is the agenda data from the March Workshop that identifies previous goals. ACTION REOUESTED . Review the attached 2011-2012 Council goals to determine what the Council would like to formally adopt at the May 3rd City Council meeting, City of Andover 2011-2012 Submitted Goals Fiscal Goals: 1. Review TlF district expirations; discuss future planning and options available which may include the creation of new TIF Districts. 2. Assure city financial stability through cost effective services, 3. Explore new revenue streams. 4. Don't commit dollars today that will commit the City to unsustainable future expenses. 5. Focus spending on community needs; wants need to be supported by new Of redirected sustainable revenues. 6. Discuss employee salaries and the review process with the budget development process, this should include reviewing salary ranges, cost of living adjustments (COLA), longevity, and merit based pay. CommerciallResidential Develooment/Redevelooment Goals: 1. Upgrade/redevelop Kottke and POV's areas. 2. Discuss more business friendly costs/regulations; Help stimulate business growth in Andover. 3, Develop a business outreach plan to improve our relationship with the business community. 4, Develop business loan program for commercial developments. (Recently the City of Coon Rapids helped a company expand by using a loan program through their HRA. They loaned them $100,000 and with help from the State ($250,000) the company is expanding to work on a cancer drug, It is estimated that this will create 14 new high paying, high tech jobs within the next two years), 5. Develop and create a master plan for an expanded City Center area. 6, Look to expand existing commercial areas and find new ones (ex. Holasek comer). 7. Business - Move forward with the EDA goals including creating new TlF district with projects that have possibility of success within 5 years. 8. Evaluate how to meet sewer/water needs of any proposed development projects. 9, Review our development review processes to reduce unnecessary development costs (duplication). 10, Be more supportive of those investing in our community; evaluate rules that frustrate businesses including the use of temporary signs, 11, Stripe more right turn lanes off Hanson and other country roads, 12. Fill vacant CD position with skill set for economic development and redevelopment. - ~. Collaboration Goals: 1. Rethink how we deliver existing basic city services and seek lower cost with increased productivity. 2. New collaboration policies must be a win-win for the participating city, 3. Eliminate a go it alone philosophy, should we provide services to others for a profit? 4. Continue to work on developing working relationships with: school district, county, and adjoining cities; the goal being to reduce costs, improve delivery of services, and be efficient as possible, 5, Continue with collaborative efforts where it meets our goals/reduces costs, Service Deliverv Goals: 1. Eliminate parks not used or useable for cost savings; consider elimination oftot lots; focus development on larger parks and trail system. 2. Explore if we should continue to depend on the sports associations for program delivery. 3. Go paperless at City Hall. Council packets online. Possibly use the $30,000 from QCTV to purchase laptops for council and staff and update software where needed, 4. Maintain our lean, efficient city operation, 5. Set up Administrative fine process to reduce use of courts, increase local revenues, and improve compliance, 6. Negotiate with Sheriff to improve community policing. 7. Use community education residual dollars for local programming during summer or school days as community center kids programs, 8. Review our processes to reduce unnecessary service deliveries. Livabilitv/Imae:e Goals: 1. Emphasize quality of life as a basic function of city government. 2. Keep the open space concept a real and viable issue, 3. Continue efforts on Hanson Blvd, sustainable landscape project. 4. Develop City livability issues program including: Met council, police/fire service delivery, transportation, civic amenities, development guidelines revisited, Involve citizens in discussions, 5. Take a serious look at joining Livable Communities Act. 6, Expand Metro Transit into Andover, What are the costs and how can we do it? 7, Be creative in improving and adding amenities to our daily life in the city (music in the park, public events, special sale events, coordinate with community center for special events, etc.). 8. 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WWW.CI.ANDOVER,MN,US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2011 Budget Implementation Progress & March 2011 Investment Report DATE: April 26, 2011 INTRODUCTION The overall City of Andover 2011 Budget contains total revenues of $28,910,245 and total expenditures of $30,785,805. The $1,875,560 of expenditures over revenues is largely due to prepaying debt in order to save on interest expenditures. The 201 !Budget includes a total property tax levy of $10,856,299: $7,500,802 (69.09%) operational levy, $1,929,112 (17,77%) debt service levy, and $1,426,385 (13.14%) capitaVwatershed levy. This reflects a zero percent gross levy increase as compared to the 2010 budget. DISCUSSION The following represents City Administration directives and departmental expectations for 2011: 1. Expenditure budgets while approved, expenses are to meet with the spirit that needs are fulfilled fIrst, expansions of service and special requests are to be reviewed with City Administration before proceeding. 2. Departments are committed to search for the best possible prices when purchasing goods and servIces, 3. Departments are committed to continually searching out new efficiencies and to challenge the status quo of how the City provides services. We don't do things (or provide a service) just because we have always done it that way! 4. Departments are committed to searching out collaborative opportunities with our neighboring government agencies to facilitate efficient and cost-effective utilization of governmental assets and personnel. 5, Department are committed to developing effective consistent and ongoing communications with City residents, businesses and other stakeholders. The following attachments are provided to assist discussion in reviewing 2011 progress: other documents may be distributed at the meeting: 1. General Fund Expenditure Budget Summary - Budget Year 20 I I through March 2011 2. Investment Maturities Summary - March 2011 (Investments managed by City Treasurer) ACTION REOUESTED The Council is requested to receive a presentation and provide direction to staff. CITY OF ANDOVER General Fund Budget Summary Totals Budget Year 2011 I 2010 I I 2011 I I REVENUES I Budget Mar YTD % of Bud Final Budget MarYTD % of Bud General Property Tax $ 7,308,495 $ 0% $ 7,191,602 $ 7,217.219 $ 0% Licenses and Permits 237.055 57,858 24% 329,901 250.080 52,405 21% Intergovernmental 567,498 193,742 34% 570,097 558,215 174,055 31% Charges for Services 543.500 86.431 16% 755,184 580.200 96,506 17% Fines 100.750 21,376 21% 104,780 105,750 15,146 14% Investment Income 65,000 (9,681) -15% 70,368 65,000 (13,225) -20% Miscellaneous 83,400 47.881 57% 136,684 84,900 52,142 61% Transfers In 196,930 196,930 100% 196,930 196,930 196,930 100% Total Revenues $ 9,102,628 $ 594,537 7% $ 9,355,546 $ 9,058,294 $ 573,959 6% I 2010 I I 2011 I I EXPENDITURES I Budget Mar YTD % of Bud Final Budget MarYTD % of Bud GENERAL GOVERNMENT Mayor and Council $ 104,251 $ 38,712 37% $ 100,710 $ 106,956 $ 39,141 37% Administration 132,967 25,501 19% 131.218 138,157 31,695 23% Newsletter 23,000 5,265 23% 17.094 27,500 6,785 25% Human Resources 60,744 4.642 8% 54,968 36,221 5,153 14% Attorney 178,500 28.739 16% 172,775 178,300 28,505 16% City Clerk 96,828 19,766 20% 95.166 103,333 21,061 20% <D Elections 49,126 1,157 2% 37,927 6.750 1,220 18% Finance 202,011 47,887 24% 194,865 212,967 51,002 24% Assessing 152,500 0% 144,760 152,500 0% Infonnation Services 150,812 25,354 17% 136,931 154,871 25,404 16% Plarming & Zoning 328.449 65,421 20% 327,566 355,258 63,344 18% Engineering 390,087 78,318 20% 389.037 414,408 85.049 21% Facility Management 571.716 87,470 15% 421.850 553.739 90.843 16% Total General Gov 2.440,991 428,232 18% 2,224,867 2,440,960 449,202 18% PUBLIC SAFETY Q) Police Protection 2.599,246 0% 2,599.246 2,615.407 653.852 25% Fire Protection 1,070,385 168,336 16% 967.716 1.077,084 219.649 20% Protective Inspection 346,282 64,730 19% 330,709 363,789 71.060 20% Civil Defense 15.909 4.888 31% 15.450 16,463 4,319 26% Animal Control 9.970 1.606 16% 6.952 9.970 1,279 13% Total Public Safety 4,041,792 239,560 6% 3,920.073 4,082.713 950,159 23% PUBLIC WORKS Streets and Highways 556,452 92,520 17% 518,989 578,050 94,106 16% (3) Snow and Ice Removal 489,381 195.649 40% 537.948 489.315 207,707 42% Street Signs 195,562 25,306 13% 166,244 196,712 23,909 12% Traffic Signals 36,000 3,649 10% 25,830 36,000 3,273 9% Street Lighting 36,400 5,272 14% 30,885 36,400 5,342 15% Street Lights - Billed 200,000 28.826 14% 186,320 206,000 29,044 14% Park & Recreation 872.633 120.923 14% 827,910 916,832 133,706 15% Recycling 118,838 16,043 13% 109,034 122,273 20,548 17% Total Public Works 2,505,266 488,188 19% 2,403,160 2,581,582 517,635 20% OTHER 170,079 18,545 11% 24,953 45,000 7,500 17% ~ Total Other 170,079 18,545 11% 24,953 45,000 7,500 17% Total Ex~enditu~es $ 9,158,128 $ 1,174,525 13'% S 8,573,053 $ 9,150,255 $ 1.924,496 21% NET INCREASE (DECREASE) $ (55,500) $ (579,988) S 782,493 $ e @8@ lii ~oo ;;:; - '" , , , , , - ~ , ~ '" 00 00 r- r- - -" ("'\I"'r---'" ",. 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",. a;' = .. - - E .... .... .... - '" .. ~ .... ~~ :B .SO u - @ ~l ~r <: <: - ~ ~~~ e 1d Z Z CI :;;: u~ ~ ~ '" ~ " .. d oo ~ ~ :l 5 0 " " ~ d 0 .';l oo ~::E oo :;:; " 0 oo oo " B ~Ol'" if iil d 5 .s oo _ .9- 3 ." [ij< " u ~ " ""' ~ ." .E u ,8' ~ "" oo ..... oo ~ S ~ 0 Ol " ::E ~ " lii oo '0 gJ > " '0 ~ s::E~ 1;! > 5 .S [~ ::E " iil ~ ~ ~ 'l1 .!J '" ~ oo " '€ Ol cti ~ 0 'l1 0 " if ::E " 0 0 ~ ~ u U ....l CI @ 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2012-2016 Capital Improvement Plan (CIP) Discussion DATE: April 26, 2010 INTRODUCTION In late March, AdministrationlFinance distributed baseline worksheets to Department Heads as a 2012- 2016 CIP kick-off. Subsequent discussion has centered on the 2012-2016 CIP development calendar (attached) and the need of other committees (Vehicle Purchasing & Facility Management Committees) and commissions (Parks and Recreation & Community Center Advisory) to start their work. DISCUSSION To assist with the 2012-2016 CIP discussion, I have attached for the Council's reference the adopted City of Andover Capital Improvement Policy, a 2011- 2015 Adopted CIP progress report and last year's 2011- 2015 CIP proj ect listings. Throughout the year it is anticipated that a significant amount of time will be spend on evaluating water/sewer infrastructure, transportation improvements, building maintenance, equipment and park and recreation needs, Each of these items will be supported by a detailed fund balance analysis of funding sources (based on various assumptions and estimates) that will be presented to the Council for review at future workshops, At this time the Staff would like to uodate the Council on the oroiected 2012-2016 CIP EQuioment listinl! (attached). Listed below is the 2012 Budl!et Develooment Guideline that was adooted at the Aoril 5th Council meetinl! that Administration is usinl! l!uidinl! discussion on CIP EQuioment: "A comprehensive review of the condition of capital equipment to ensure that the most cost-effective replacement schedule is followed Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. " '::::.. <l) <l) .~ '" '" '" .E '" ~ 't:l ~ 't:l ~ 't:l '" '" '" <l) <l) <l) <l) 0 ::r: ::r: ::r: 0 ::r: u i:l i:l i:l u i:l '" ~ OJ) ~ ~ '" <l) '" '" ~ <l) '" <l) OJ) ~ <l) ~ ~ ~ .a .s '" 't:l ~ 't:l ~ ~ ~ ~ .s ~ - - (/) '" (/) (/) '" '" (/) '" (/) (/) (/) '" <l) <l) <l) <l) 1 ~ ~ ~ ~ ::r: ::r: ::r: ~ ::r: ~ ~ ~ - - - fr fr (:l.. - (:l.. - - - - '1 .~ .~ i:l '5 i:l '0 '5 <l) '~ <l) .~ .~ '0 '0 0) p... <l) Q ~ S Q Q p... Q S S S ~ ~ ~ ~ ~ ~ ~ <l) 0 <l) <l) 0 <l) .s 0 .s .s <l) 0 .s <l) 0 0 0 0 u 1) u 0) ~ u 0) u 1) u 0) u u u u .€ ~ .0 ~ .€ fr ~ ~ fr 0.. .€ ~ fr ~ ~ .€ ~ ~ .€ .€ .€ ,€ .s .s .s <l) .s u > iJ ~ ~ U Q ~ ..:: Q Q u ..:: Q ..:: > u ..:: ~ u u u u '" ~ -= ~ = Q,l <l) - i:l ~ 0 g. ="" 0) ~ .~ ~i en <l) ..c; <l) ..c; '" .s '" '" ~ ,; '" o s Q) ~ " ~ to 't:l 0) ~c.. u '" 't:l ~~ 's ~ '" :a ~ - g- OJ) 8 '" <l) .~ p... en " .€ s i:l ...... <l) 0) ~ Q,l U 0.. .s '" 8 .e- 0 <l) oh O~ 'g. Q) " :a .;:: 6- u ~ .~ <l) .9 .s :9 B 0.. .... >e: <l) '" <l) <S 0 e " '" p... ~ " G '" ...... ~ en e:i 0) 1l E-<"" '> * u '" ~ U U 1) ~ U .>l 0) ....\C ;::: """ i:l is <l) - r;:; """ <l) U :g .~ "",...; 0) 't:l 0 <l) ::r: .,; '0 0) 0 '0' '0 :g ..:: s S S .... '0 ...... Q B :: ~ i:l <l) :: 0.. - 0 0.. .9- s :i 0 0.. e:i N 0.. <l) E:: <l) 0 ~ 0 :i <l) '" C'l C'l ~ ~ '> ~ (:l.. U U '> <l) :i , I 0 <l) <l) <l) .~ , U ..c; ~ 5 .... B !;D <Ii '0 <l) .;; <l) .1:: C'l 0.. U N > .~ <l) N -B !Ii (:l.. > .... - .... ~ '" ,...; <l) ~ ~ ~ 3 .;; - <l) Q 5 fr '" 't:l ~ <l) Capital Improvement Program Andover's Capital Improvement Program is intended to provide the City Council and staff with a process for identifying and prioritizing capital projects in order to coordinate the financing and timing of improvements, which maximizes the return to the public. The process will enable the City to evaluate long-term cost and benefits of projects being adopted for the coming year (2011) against those projects planned between 2012 and 2016. The Capital Improvement Program follows the following policy: Capital Improvement Policy 1. A Capital Improvements Plan (CIP) will be developed for a period of five years. As resources are available, the most current year of the CIP will be incorporated into the current year operating budget as the Capital Improvements Budget (CIB). The CIP will be reviewed and updated annually. Years two through five are for planning purposes only. 2. The City will maintain its physical assets in a manner, adequate to protect the City's capital investment and to minimize future maintenance and replacement costs. The City will provide for maintenance and replacement from current revenues where possible. 3. To be considered in the Capital Improvements Program, a project must have an estimated cost of at least $5,000 in one of the calendar years of the project. Projects may not be combined to meet the minimum standard unless they are dependent upon each other. Items that are operating expense (such as maintenance agreements, personal computer software upgrades, etc.) will not be considered within the CIP. 4. Capital projects, which duplicate other public and/or private service, will not be considered. 5. The City will identify the estimated costs and potential funding sources for each capital project prior to inclusion in the CIP. The operating costs to maintain capital projects shall be considered prior to the decision to undertake the capital projects. 6. Capital projects and/or capital asset purchases will receive a higher priority if they meet a majority of the following criteria: A. Mandatory project B. Maintenance project (approved replacement schedules) C. Improve efficiency D. Provide a new service E. Policy area project F. Broad extent of usage G. Length of expected useful life H. Positive effect on operation and maintenance costs I. Availability of county/state/federal grants J. Elimination of hazards (improves public safety) K. Prior commitments L. Replacement due to disaster or loss 7. The CIP is to be presented by the City Administrator and Management Team annually to the City Council for approval. Any substantive change to the CIP after approval must be approved by the City Council. -3 - " CITY OF ANDOVER 2011 Capital Improvement Plan Projects By Department - Use of Funds Community Center Replacement - Zamboni Battery Pack $ 7,000 Purchased Engineering New Development Projects 80,000 No new developments Pedestrian Trail Maintenance 55,000 Kelsey Round Lake Park - summer 135,000 Facility Management Annual Parking Lot Maintenance 104,000 Out for bids Building A - Seal Floor 8,000 summer/fall project Andover Station North Parking Lot / Access Road 400.000 Design phase, bid this summer 512,000 Information Technology VMWare Virtual Server / SAN Project 50,000 95% complete Park & Recreation - Operations Replace/Repair Play Structures - Various Parks 45,000 Structures ordered Replacement - Large Capacity Lawnmower 112,000 Purchased 157,000 Park & Recreation - Projects Annual Miscellaneous Projects 15,000 Skate Board Park 70,000 Site prep in process, equipment ordered Hawkridge Park Improvements 24,000 Trail paved in August Public Works Campus Warming House 35,000 Completed 144,000 Storm Sewer Storm Sewer Improvements 25,000 Culvert replacement on 167th this summer Streets / Highways Annual Street Seal Coat Project 410,000 Bid, start this summer Annual Street Reconstruction 708,000 Bid, start this May Annual Pavement Markings 23.000 Bid, start this summer Annual Curb Replacement 41,000 No curb work this year Bridge Scour Repairs 60,000 Postponed until 2012 - S Coon Creek Dr Municipal State Aid Routes / New & Reconstruct 376,000 Currently out for bids Intersection Upgrades 130,000 Postponed by City Council Replacement - Dump Truck w/ Snow Removal 200,000 Purchased 1,948,000 Water Rehabilitation of Wells 55,000 Well #7 complete, Well #6 this fall Water Main Improvements 305,000 Not to be constructed Water Tower #1 Rehabilitation 650,000 Bid, start this May 1,010,000 Grand Total $ 3.988,000 _ L.) - City of Andover, :MN Capital Plan 2011 thru 2015 DEPARTMENT SUMMARY Department 2011 2012 2013 2014 2015 Total Central Equipment 7,000 75,000 82,000 Community Center 7,000 6,000 12,000 25,000 Elections 110,000 110,000 Engineering 135,000 171,000 168,000 175,000 202,000 851,000 Facility Management 512,000 410,000 1,543,000 4,352,000 38,000 6,855,000 Fire 600,000 799,000 430,000 20,000 1,849,000 Information Technology 50,000 50,000 Park & Rec . Operations 157,000 104,000 120,000 160,000 45,000 586,000 Park & Rec . Projects 144,000 15,000 115,000 15,000 115,000 404,000 Sanitary Sewer 440,000 822,000 2,250,000 1,900,000 5,412,000 Storm Sewer 25,000 30,000 185,000 40,000 45,000 325,000 Streets I Highways 1,948,000 3,176,000 1,936,000 2,732,000 1,911,000 11,703,000 Water 1,010,000 1,135,000 65,000 70,000 670,000 2,950,000 TOTAL 3,988,000 6,094,000 5,938,000 10,224,000 4,958,000 31,202,000 - :5 ~ City of Andover, MN Capital Plan 2011 thm 2015 FUNDING SOURCE SUMMARY Source 2011 2012 2013 2014 2015 Total Assessments 576,000 1,117,000 178,000 534,000 1,809,000 4,214,000 Buildin9 Fund 1,500,000 1,500,000 Cepital Equipment Reserve 300,000 300,000 Capital Projects Levy 127,000 102,500 190,000 82,000 83,000 584,500 Central Equipment Fund 7,000 75,000 82,000 Comm Clf Operations 87,000 38,000 8,000 12,000 145,000 Construction Seal Coat Fund 19,000 11,000 12,000 12,000 54,000 Equipment Bond 312,000 754,000 1,214,000 695,000 20,000 2,995,000 G.O. Bond 4,315,000 4,315,000 Municipal State Aid Funds 412,000 1,683,000 420,000 908,000 3,423,000 Park Improvement Funds 144,000 15,000 115,000 15,000 115,000 404,000 Road & Bridge Funds 1,086,000 1,107,000 1,195,000 1,438,000 1,752,000 6,578,000 Sanitary Sewer Fund 243,500 243,500 Sewer Revenue Bonds 2,000,000 250,000 2,250,000 Sewer Trunk Fund 65,000 67,000 600,500 90,000 760,000 1,582,500 Storm Sewer Fund 40,000 30,000 35,000 40,000 45,000 190,000 Tax Increment 400,000 400,000 Water Fund 55,000 80,500 65,000 70,000 70,000 340,500 Water Trunk Fund 665,000 793,000 88,000 25,000 30,000 1,601,000 GRAND TOTAL 3,988,000 6,094,000 5,938,000 10,224,000 4,958,000 31,202,000 - , - City of Andover, MN Capital Plan 2011 thru 2015 PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2011 2012 2013 2014 2015 Total ICentral Equipment I Replacement. Hotsy Pressure Washer 12-48800-01 3 7,000 7,000 Central Equipment Fund 7,000 7,000 Replacement - Service Truck 13-48800-01 2 40,000 40,000 Central Equipment Fund 40,000 4fJ,000 Replacement - Floor Sweeper 13-48800-02 3 35,000 35,000 Central Equipment Fund 35,000 35,000 Central Equipment Total 7,000 75,000 82,000 ICommunity Center I Replacement - Zamboni Battery Pack 11-44000-01 2 7,000 7,000 Camm etr Operations 7,000 7,000 Replacement -Ice Edger 12-44300-01 1 6,000 6,000 Comm Ctr OperaUons 6,000 6,000 Reface Rink Boards 15-44300-01 2 12,000 12,000 Comm Ctr Operations 12,000 1~000 Community Center Total 7,000 6,000 12,000 25,000 IElections I Replacement - Voting Equipment 13-41310-01 1 110,000 110,000 Capltai Projects Levy 110,000 110,000 Elections Total 110,000 110,000 IEn~ineerin~ , ~ New Development Projects 11-41600-01 1 80,000 85,000 110,000 115,000 140,000 530,000 Sewer Trunk Fund 65,000 67,000 2~000 90,000 110,000 354,000 Water Trunk Fund 15,000 18,000 88,000 25,000 30,000 178,000 Pedestrian Trail Maintenance 11-41600-02 1 55,000 56,000 58,000 60,000 62,000 291,000 Road & Bridge Funds 55,000 56,000 58,000 60,000 62,000 291,000 Replacement - Blazer #11 12-41600-01 2 30,000 30,000 Equipment Bond 30,000 30,000 Engineering Total 135,000 171,000 168,000 175,000 202,000 851,000 IFacility Mana~ement ~ Annual Parking Lot Maintenance 11-41900-01 1 104,000 25,000 26,000 27,000 28,000 210,000 Capital Projects Levy 24,000 25,000 26,000 27,000 28,000 130,000 Carom Ctr Operations 80,000 80,000 Building A - Seal Floor 11-41900-02 1 8,000 9,000 10,000 27,000 -~~ Department Project# Priority 2011 2012 2013 2014 2015 Total Capital Projects Levy 8,000 9,000 10,000 27,000 Andover Station North Parking Lot / Access Road 11-41900-03 1 400,000 400,000 Tax Increment 400,000 400,000 Surface Seal all Brick Structures 12-41900-01 1 75,000 75,000 Capital Projects Levy 22,500 2~500 Camm Ctr Operations 32,000 3~000 Water Fund 20,500 20,500 Carpet I Tile Replacement 12-41900-02 2 10,000 8,000 10,000 28,000 Capna/ Projects Levy 10,000 10,000 20,000 Camm etr Operations 8,000 8,000 Roof Replacements 12-41900-03 1 300,000 300,000 Capital Equipment Rese",e 300,000 300,000 Land Purchase 13-41900-01 1 1,500,000 1,500,000 Building Fund 1,500,000 1,500,000 Addition to Storage Building & Vehicle Maint. Shop 14-41900-01 1 2,200,000 2,200,000 G.O. Bond 2,200,000 2,200,000 Recycling Building & Fence 14-41900-02 1 250,000 250,000 G.O. Bond 250,000 250,000 Attached Storage Building 14-41900-03 1 250,000 250,000 G.O. Bond 250,000 250,000 Relocate Fuel Station wi Canopy 14-41900-04 2 280,000 280,000 G.O. Bond 280,000 280,000 Fire 51. #2 Addition with additional land purchase 14.41900.05 2 885,000 885,000 G.O. Bond 885,000 885,000 Pedestrian Tunnel Under Crosstown Blvd. 14-41900-06 1 450,000 450,000 G.O. Bond 450,000 450,000 Facility Management Total 512,000 410,000 1,543,000 4,352,000 38,000 6,655,000 IFire I Replacement - Ladder Truck #11 12-42200-01 1 600,000 600,000 1,200,000 Equipment Bond 600,000 600,000 1,200,000 Replacement - Fire Chiefs Vehicle 13-42200-01 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Rescue #11 13-42200-02 2 50,000 50,000 Equipment Bond 50,000 50,000 Replacement - Fire Marshall Vehicle 13-42200-03 2 40,000 40,000 Equipment Bond 40,000 40,000 Replacement - Utility #4 13-42200-04 2 32,000 32,000 Equipment Bond 32,000 32,000 Replacement - Utility #5 13-42200-05 2 32,000 32,000 Equipment Bond 32,000 32,000 Replacement - Grass #31 14-42200-01 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Grass #21 14-42200-02 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Tanker #11 14-42200-03 2 340,000 340,000 Equipment Bond 340,000 340,000 New - Water/Ice rescue boat 15-42200-01 1 20,000 20,000 Equipment Bond 20,000 20,000 Fire Total 600,000 799,000 430,000 20,000 1,849,000 -g~ Department Project# Priority 2011 2012 2013 2014 2015 Total IInformation Technology I VMWare Virtual Server I SAN Project 11-41420-02 1 50,000 50,000 Capital Projects Levy 50,000 50,000 Information Technology Total 50,000 50,000 IPark & Rec - Operations I Replace/Repair Play Structures - Various Parks 11-45000-01 1 45,000 45,000 45,000 45,000 45,000 225,000 Capital Projects Levy 45,000 45,000 45,000 45,000 45,000 225,000 Replacement - Large Capacity Lawnmower #580 11-45000-02 1 112,000 112,000 Equipment Bond 112,000 112,000 Replacement - Taro Groundsmaster, #559 12-45000-01 1 23,000 23,000 Equipment Bond 23,000 23,000 Replacement - Bobcat #61 0 12-45000-02 2 36,000 36,000 Equipment Bond 36,000 36,000 Replacement- One Ton Truck wi Plow, #599 13-45000-01 2 65,000 65,000 Equipment Bond 65,000 65,000 Replacement - Trailer, T-554 13-45000-02 2 10,000 10,000 Equipment Bond 10,000 10,000 Replacement - One Ton Truck wi Plow #503 14-45000-01 2 65,000 65,000 Equipment Bond 65,000 65,000 Replacement - One Ton Crew Cab Pickup #502 14-45000-02 1 50,000 50,000 Equipment Bond 50,000 50,000 Park & Rec - Operations Total 157,000 104,000 120,000 160,000 45,000 586,000 IPark & Rec - Projects I Annual Miscellaneous Park Projects 11-45001-01 1 15,000 15,000 15,000 15,000 15,000 75,000 Park Improvement Funds 15,000 15,000 15,000 15,000 1~000 75,000 Skate Board Park 11-45001-02 1 70,000 70,000 Park Improvement Funds 70,000 70,000 Hawkridge Park Improvements 11-45001-03 1 24,000 24,000 Park Improvement Funds 24,000 24,000 Public Works Campus Warming House 11-45001-04 1 35,000 35,000 Park Improvement Funds 35,000 35,000 Irrigation Improvements 13-45001-01 2 100,000 100,000 200,000 Park Improvement Funds 100,000 100,000 200,000 Park & Rec - Projects Total 144,000 15,000 115,000 15,000 115,000 404,000 ISanitary Sewer , , Sanitary Sewer Extensions 12-48200-01 1 440,000 400,000 840,000 Assessments 440,000 440,000 Sewer Trunk Fund 41)0,000 41)0,000 Replacement - One Ton Truck wi Plow #90 13-48200-02 1 65,000 65,000 Sanitary Sewer Fund 65,000 65,000 Replacement - JeWac Truck #99 13-48200-03 1 357,000 357,000 Sanitary Sewer Fund 178,500 178,500 Sewer Trunk Fund 178,500 178,500 Rural Reserve Trunk Sanitary Sewer 14-48200-01 1 2,250,000 1,250,000 3,500,000 Assessments 250,000 1,000,000 1,250,000 Sewer Revenue Bonds 2,000,000 250,000 2,250,000 Yellow Pine Lift Stetion 15-48200-01 1 650,000 650,000 -<1' ----------- Department Project# Priority 2011 2012 2013 2014 2015 Total Sewer Trunk Fund 650,000 650,000 Sanitary Sewer Total 440,000 822,000 2,250,000 1,900,000 5,412,000 IStorm Sewer I Storm Sewer Improvements 11-48300-01 1 25,000 30,000 35,000 40,000 45,000 175,000 Storm Sewer Fund 25,000 30,000 35,000 40,000 45,000 175,000 Replacement - Elgin Street Sweeper #169 13-48300-01 1 150,000 150,000 Equipment Bond 150,000 150,000 Storm Sewer Total 25,000 30,000 185,000 40,000 45,000 325,000 !Streets / Hij!;hways I Annual Street Seal Coat Project 11-43100-01 1 410,000 369,000 435,000 468,000 840,000 2,522,000 Construction Seal Coat Fund 19,000 10,000 10,000 10,000 49,000 Road & Bridge Funds 391,000 369,000 425,000 458,000 830,000 2,473,000 Annual Street Crack Seal Project 11-43100-02 1 100,000 110,000 196,000 163,000 569,000 Construction Seal Coat Fund 1,000 2,000 2,000 5,000 Road & Bridge Funds 100,000 109,000 194,000 161,000 564,000 Annual Street Reconstruction 11-431 00-03 1 708,000 688,000 713,000 875,000 836,000 3,820,000 Assessments 177,000 172,000 178,000 219,000 209,000 955,000 Road & Bridge Funds 531,000 516,000 535,000 656,000 627,000 2,865,000 Annual Pavement Markings 11-43100-04 1 23,000 24,000 25,000 26,000 27,000 125,000 Road & Bridge Funds 23,000 24,000 25,000 26,000 27,000 125,000 Annual Curb Replacement 11-43100-05 1 41,000 42,000 43,000 44,000 45,000 215,000 Road & Bridge Funds 41,000 42,000 43,000 44,000 45,000 215,000 Bridge Scour Repairs 11-43100-06 1 60,000 60,000 Road & Bridge Funds 45,000 45,000 Storm Sewer Fund 15,000 15,000 Municipal State Aid Routes I New & Reconstruct 11-43100-07 1 376,000 1,613,000 420,000 908,000 3,317,000 ASsessments 94,000 205,000 65,000 364,000 Municipal State Aid Funds 282,000 1,408,000 420,000 843,000 2,953,000 Intersection Upgrades 11-43100-08 1 130,000 275,000 65,000 470,000 Municipal State Aid Funds 130,000 275,000 65,000 470,000 Replacement - Dump Truck wi Snow Removal #195 11-43100-09 1 200,000 200,000 Equipment Bond 200,000 200,000 Replacement - One Ton Truck wi Plow #132 12-43100-01 1 65,000 65,000 Equipment Bond 65,000 65,000 Replacement - Water Tanker #163 13-43100-01 2 100,000 100,000 Equipment Bond 100,000 100,000 Replacement - Ditch mowing tractor and mowers 13-43100-02 1 90,000 90,000 Equipment Bond 90,000 90,000 Replacement - Dump Truck wi Snow Removal #198 14-43100-01 1 150,000 150,000 Equipment Bond 150,000 150,000 Streets / Highways Total 1,948,000 3,176,000 1,936,000 2,732,000 1,911,000 11,703,000 IWater I Rehabilitation of Wells 11-48100-01 1 55,000 60,000 65,000 70,000 70,000 320,000 Water Fund 55,000 60,000 65,000 70,000 70,000 320,000 Water Main Improvements 11-48100-02 1 305,000 1.075,000 600,000 1,980,000 Assessments 305,000 300,000 600,000 1,205,000 Water Trunk Fund 775,000 775,000 Water Tower #1 Rehabilitation 11-481 00-03 1 650,000 650,000 '- \0'" Department Project# Priority 2011 2012 2013 2014 2015 Total Water Trunk Fund 650,000 650,000 Water Total 1,010,000 1,135,000 65,000 70,000 670,000 2,950,000 GRAND TOTAL 3,968,000 6,094,000 5,938,000 10,224,000 4,958,000 31,202,000 -II - , City of Andover, MN \J\~.c- 1- Capital Plan 2012 thru 2016 - PROJECTS & FUNDING SOURCES BY DEPARTMENT Department Project# Priority 2012 2013 2014 2015 2016 Total ICentral Equipment I Replacement - Hotsy Pressure Washer 14-48800-01 3 7,000 7,000 Equipment Bond 7,000 7,000 Replacement - SelVlce Truck 14-48800-02 2 40,000 40,000 Equipment Bond 411,000 40,000 Replacement - Floor Sweeper 15-48800-01 3 35,000 35,000 Equipment Bond 35,000 35,000 Central Equipment Total 47,000 35,000 82,000 ICommunity Center I . Replacement -Ice Edger 12-44300-01 1 8,000 8,000 Camm etr Operations 8,000 8,000 Community Center Total 8,000 8,000 IElections I Replacement - Vo~ng Equipment 13-41310-01 1 110,000 110,000 Capilal Projects Levy 110,000 110,000 Elections Total 110,000 110,000 IFire I Replacement - Ladder Truck #11 12-42200-01 1 600,000 600,000 1,200,000 Equipment Bond 600,000 600,000 1,200,000 Replacement - Fire Chiefs Vehicle 13-42200-01 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Rescue #11 13-42200-02 2 50,000 50,000 Equipment Bond 50,000 50,000 Replacement - Grass #31 14-42200-01 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Grass #21 14-42200-02 2 45,000 45,000 Equipment Bond 45,000 45,000 Replacement - Tanker #11 14-42200-03 2 340,000 340,000 Equipment Bond 3411,000 340,000 Replacement - Fire Marshall Vehicle 14-42200-04 2 40,000 40,000 Equipment Bond 411,000 411,000 Repiacement - Utility #4 15-42200-01 2 32,000 32,000 Equipment Bond 32,000 32,000 Replacement - Utility #5 15-42200-02 2 32,000 32,000 Equipment Bond 32,000 32,000 New - Water/ice rescue boat 15-42200-03 1 20,000 20,000 -O~ \)o-C\P~ Department Project# Priority 2012 2013 2014 2015 2016 Total Equipment Bond 20,000 20,000 Fire Total 600,000 695,000 470,000 84,000 1,849,000 IPark & Rec - Operations I New - Cab and Snow Blower Attachment 12-45000-02 1 9,000 9,000 Equipment Bond 4,500 4,500 Water Fund 4,500 4,500 New - Trail Plow Attachment 12-45000-03 1 5,600 5,600 Equipment Bond 5,600 5,600 Replacement- One Ton Truck wI Plow #599 13-45000-01 2 65,000 65,000 Equipment Bond 65,000 65.000 Replacement- Trailer#T-554 13-45000-02 2 10,000 10,000 Equipment Bond 10,000 10,000 Replacement - 10 Ft Wide Trail Mower #583 13-45000-03 1 65,000 65,000 Equipment Bond 65,000 65,000 Replacement- One Ton Truck wi Plow #503 14-45000-01 2 65,000 65,000 Equipment Bond 65,000 65,000 Replacement - Bobcat #61 0 14-45000-02 2 36,000 36,000 Equipment Bond 36,000 36,000 Replacement - T oro Groundsmaster #559 15-45000-01 1 23,000 23,000 Equipment Bond 23,000 23,000 Replacement- One Ton Crew Cab Pickup #502 16-45000-01 1 50,000 50,000 Equipment Bond 50,000 50,000 Park & Rec - Operations Total 14,600 140,000 101,000 23,000 50,000 328,600 ISanitary Sewer I Replacement - One Ton Truck wi Plow #90 13-48200-01 1 65,000 65,000 Sanitary Sewer Fund 65,000 65,000 Replacement- One Ton Truck wi Plow #94 13-48200-02 2 65,000 65,000 Sanitary Sewer Fund 32,500 32,500 Stonn Sewer Fund 32,500 32,500 Replacement- JeWac Truck #99 14-48200-02 1 357,000 357,000 Sanitary Sewer Fund 178,500 178,500 Sewer Trunk Fund 178,500 178,500 Sanitary Sewer Total 130,000 357,000 487,000 IStorm Sewer I Replacement- Elgin Street Sweeper#169 13-48300-01 1 150,000 150,000 Equipment Bond 150,000 150,000 Storm Sewer Total 150,000 150,000 IStreets / Highways I Replacement- One Ton Truck wi Plow #132 12-43100-08 1 65,000 65,000 Equipment Bond 65,000 65,000 New - Front-End Loader 12-43100-09 1 140,000 140,000 Equipment Bond 1411,000 140,000 Replacement - Ditch mowing tractor and mowers 13-43100-01 1 90,000 90,000 Equipment Bond 90,000 90,000 Replacement- Dump Truck wi Snow Removal #198 14-43100-01 1 150,000 150,000 Equipment Bond 150,000 150,000 -l"?'- "0r~~ Department Project# Priority 2012 2013 2014 2015 2016 Total Replacement - Water Tanker #163 14-43100-02 2 100,000 100,000 Equipment Bond 100,000 100,000 Streets / Highways Total 205,000 90,000 250,000 545,000 GRAND TOTAL 827,600 1,315,000 1,225,0 0 142,000 50,000 3,559,600 ~)Lj~ @ C I T Y o F NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers FROM: Jim Dickinson, City Administrator SUBJECT: 2012 Budget Development Discussion DATE: April 26, 2011 INTRODUCTION City Administration is starting to focus on the 2012 Annual Operating Budget Development process and is looking for City Council direction as the preparation of the 2012 Annual Operating Budget proceeds. Please refer to the attached 2012 Budget Development Calendar for the tentative time schedule. City Administration will review with the Council the bold italics items at the meeting. DISCUSSION The following are 2012 Budget Development guidelines were adopted at the April 5th City Council meeting: 1) A commitment to a City Tax Capacity Rate to meet the needs of the organization and positioning the City for long-term competitiveness through the use of sustainable revenue sources and operational efficiencies. Note: Preliminary Anoka County Assessor taxable market value figures for the City of Andover are reflecting a 6.7% decrease in total taxable market value. The City will also not receive any Market Value Homestead Credit in 2012. It is likely the State of Minnesota will place levy limits on cities for 2012 levies. 2) Continue with the current procurement and financial plan to appropriately expend the bond proceeds generated from the successful 2006 Open Space Referendum. Note: Staff has been active pursuing the third open space purchase. It is anticipated a closed session with the City Council will be held in the near future to discuss progress. 3) A fiscal goal that works toward establishing the General Fund balance for working capital at no less than 40% of planned 2011 General Fund expenditures and the preservation of emergency fund balances (snow emergency, public safety, facility management & information technology) through targeting revenue enhancements or expenditure limitations in the 2011 adopted General Fund budget. Note: With property tax revenues making up 80% of the total General Fund revenues (up from 74%) additional cash flows designations are appropriate. 4) A commitment to limit the 2012 debt levy to no more than 20% of the gross tax levy and a commitment to a detailed city debt analysis to take advantage of alternative financing consistent with the City's adopted Debt Policy. Note: The 2011 levy was 17.7%, the margin available to 20% is sufficient to fund a small equipment bond 5) A comprehensive review of the condition of capital equipment to ensure that the most cost- effective replacement schedule is followed. Equipment will be replaced on the basis of a cost benefit analysis rather than a year based replacement schedule. Note: This will be done as part of the 2012-2016 CIP development process. 6) A team approach that encourages strategic planning to meet immediate and long-tenn operational, staffing, infrastructure and facility needs. 7) A management philosophy that actively supports the funding and implementation of Council policies and goals, and a commitment to being responsive to changing community conditions, concerns, and demands, and to do so in a cost effective manner. ............................................................................... Fund Balance Forecast Update: Staff will review with the Council the attached 2010 General Fund Balance Analvsis at the meetinf!. Staffing: No new staffing requests are expected from City Departments for the 2012 budget. Administration's first request, iffunding is available (approximately $75K), would be to exercise the recall of the Public Works employee that was laid off as part of the 2010 budget process. No furloughs or hour reductions are anticipated at this time. With various position vacancies, Administration will monitor staffing availability and budget to maintain adequate service levels to the public. -<.}- Personnel Related Implications: To date the following are projected issues facing personnel related expenses: 1. In Administration's opinion the current salary compensation package is competitive with other government entities. Administration and Human Resources will be reviewing position-based salaries in detail over the next few months to confirm competitiveness. As Dart of the budflet orocess. oav steos for eliflible emolovees will be included in the 2012 budflet orooosal. but no cost of livinfl ad;ustment (COLA) is recommended. Council feedback/direction is souflht on this tooic. 2. A midyear review of the health plan will be conducted with our broker in June. The insurance claims trends at this time do not appear to be favorable. The initial vroposed 2012 budget for health insurance will likely carry a 10% increase, with future hopes of a lesser or no increase. The City currently offers the employees a high deductible plan ($5,000 family, $2,500 single) with a health spending account (HSA), this was implemented in 2006. As part of the program, the City pays for 100% of a single health insurance premium, 76% for a family health insurance premium and contributes annually to the employees HSA. 3. At the most recent legislative session. legislature approved increased employee and employer contributions to the Public Employee Retirement Association (PERA) as part of the most recent public pension legislation, the necessary modifications are implemented into the budget and the current increase is reflected in the PERA special levy. Contractual Departments: 1. The City Attorney 2011 contract included a 1 % increase of the 2010 rate. Discussion for the 2012 contract willlikelv indicate. ifCitv emolovees are not flranted a COLA. the leflal service contract would be treated the same. 2. The proposed 2011 City of Andover Law Enforcement expenditure budget is $2,615,407 which is offset by a Police State Aid revenue budget of $112,860 and School Liaison revenue budget of $83,988 reflecting a net tax levy impact of $2,418,559. The current Sheriff s contract provides for: a. 80 hours per day of patrol service b. 12 hours per day of service provided by a Community Service Officer c. School Liaison Officers in the middle school and high school d. Patrol Investigator e. 50% of the Crime Watch Program's coordinator position. - 3 - It should be noted that the Sheriff s Department always provides the required number of deputies for all hours contracted by the City. If the Sheriffs Department has a vacancy or a deputy is injured etc.., they still provide the City with a deputy at straight time even though they may have to fill those hours with overtime which at times may cost the Sheriff's Department additional, but is not billable per the contract. Staff has had initial discussions with the Anoka Countv Sheriff on the 2012 contract discussin!! the status QUO. hut staff is lookin!! to the Council for service deliverv direction relative to the law enforcement contract. Council Memberships and Donations/Contributions: The following memberships/contributions are included in the 2011 General Fund Budget: . League of Minnesota Cities $19,200 . North Metro Mayors Association $13,709 . Association of Metropolitan Cities (AMM) $ 8,716 . Community Schools $21,000 - Terminates 6-30-2011 . Mediation Services $ 3,323 . YMCA - Water Safety Program $ 5,500 . Youth First (Neighborhood Center) $12,000 . Central Center for Family Resources $ 1,500 The following donations/contributions are in the 2011Caritable Gambling Fund budget and presented at fiscal impact in the proposed 2011 budget: . Youth First - City Partner Fee $10,500 Charitable Gambling Fund . Alexandra House $10,000 Charitable Gambling Fund . Senior High Parties $ 1,200 Charitable Gambling Fund Please note that any funding coming from the Charitable Gambling Fund is contingent on available resources. Council direct is sou!!ht on how to hud!!et for 2012. CaDital Proiects and Debt Service Funds Capital Projects Levy: Capital Projects Levy - The 2011 Capital Projects Levy Budget specifically designates $1,391,385 of the general tax levy to capital projects and equipment needs relating to Capital Outlay ($210,000), Road and Bridge ($1,064,959), Pedestrian Trail Maintenance ($54,926) and Park Projects ($61,500). Specific designation of the tax levy to anticipated City needs and priorities for transportation and trail maintenance, park projects and equipment outlays allows the City to strategically allocate its resources and raise the public's awareness of City spending -1{- priorities. The Road and Bridge levy is calculated according to Council Policy based on annual growth increases, with Capital Outlay, Pedestrian Trail Maintenance and Park Levies increased according to the City Council budget guidelines. . Road and Bridge - This levy is proposed for transportation programming related to maintaining City streets, roadways and pedestrian trails. This would be the sixth year that a portion of the Road & Bridge Fund is dedicated to pedestrian trail maintenance. This levy is also used for the City's seal coating and crack sealing programs and for street overlays. . Park Improvements - This levy is proposed as an annual appropriation to be used to underwrite a wide range of park improvement projects as recommended by the Park and Recreation Commission and approved by the City Council. This funding is intended to be a long-term supplemental source of capital funding for park projects that would be separately identified in the City's Five-Year Capital Improvement Plan. . Capital Equipment/Proiects - Under the Capital Projects Levy a levy is proposed to be designated to capital improvement/equipment project expenditures identified through the CIP process. Through this designation, the City, over time, will build a fund reserve to avoid cash flow "spikes" and address a wide range of capital improvement needs such as facility maintenance projects under a more controlled spending environment. Direction is souJ!ht from the Council as to whether or not Council commitment to the Capital Proiects Levv remains at the 2011 level. or should this increase or decrease? Debt Service Levy: Annually the Finance Department conducts a detailed debt service analysis to monitor outstanding debt and to look for early debt retirement or refinancing opportunities that will yield interest expense savings to the City. Staff and EWers & Associates have completed that review (attached) and it appears at this time, there are any refinancing opportunities and the Debt Service Fund Budgets below is what is expected for 2012. The preliminary 2012 Debt Service levy provides for the following debt service levies: . 2004A G.O. Capital Imp. Bonds $ 405,292 . 2004 EDA Public Facility Revenue $ 1,092,684 . 2011 G.O. Equipment Bonds $ 102,107 . 2012 G.O. Equipment Certificate (new) $ 146,471 . 2010 G.O. Open Space Bonds $ 182,558 . ???? Total $1,929,112 The levy for the 2004 EDA Public Facility Bonds is presented at a levy that was identified in the original pro-forma analysis for the community center. It should be noted that this levy is -!;' scheduled to be reduced significantly starting in 2014, the levy will basically be offset by a significant portion of the $635,000 YMCA annual rental payment. The total 2012 Debt Service Levv is DYODOSed to be exactlv the same as the 20111evv. ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. -6 - ~ ~ ~ ~ ~ ~ E - E r/) r/) r/) r/) ~ r/) r/) ~ ~ ~ ~ ~ ~ - - - - - 0 - - - - - '<:) .~ '<:) '<:) '<:) Q '<:) '<:) '<:) '<:) '~ S S S S S s:: s:: S ~ i5 ;:l 0 ~ 0 0 0 " 0 " 0 ~ 0 0 0 " " " " " U U U U u U g U U U U U g g u u u .€' .€' .€' ~ .€' !il .€' .0 .€' .€' .€' .€' !il !il !il 0 0 s:: .S 0 .S .S .S .S .S u u u u Q u 1i: u ~ i:J u u u u u ~ ~ ~ ~ ~ .... "'0 .w !il "'0 ,-... ;:l .!:l .: a:l .fj 0 "'0 ''[ " 0.. ., .g 0 1:! 0.. 8 i " ~ '" ~ ~ ~ p., <Ii r/) .@ -c N " "'0 N - u - d ;:l - o<l 0 ;:l = 0 "'0 a:l 0 "'0 .D ~ N OJ) "'0 .: N ~ ~ - '1::i .... - ., ~ ~ ~ ~ ~ .~ " 0 .... ~ " ., .~ <B OJ) ~~ .::: 0 <Ii ~ "8 "'0 g- ;:l 'S ., " " ., " p., .D u i:l .i:: d a:l ~ 1ci S ~ ~ i5:: .S u ~ "'0 .g 0 ~ .8 ., "'0 ~" p., "'0 .... " g. "'0 S N !:l - OJ) !il .w - ., 0 ~ <Ii :g - p., ~ .S r/) u .,; 0 g- fB< "'0 '" ~~ ., 0 Q ~ o<l ] ~ u !il ~ 0.. 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'" '" <I) < .... <I) u :s ~ 1;i <I) ] <E ,S ~ ,s f-< .f' ~ ~ of 00 ~ 1:: 00 00 <I) <I) - u "8 <I) u :g < '" S "0 ~ ~ 0) 'S ~ '~ ;:l <I) ~ B o~ :s ,S c:J P. 00 00 ,f' ~ ~ <I) '" >Q .... ~ <I) "0 <I) ~ "0 ~ "0 ... 00 1:: - .,,; '" !3 .,,; <I) 1;i U <i-< <I) <I) ....... < 'S <I) 0) ~ <I) ., <I) ,= 0 :a ~ ,l:l '" Eo-< fn .S 8 0; '" ] ;:l .s 0 0: ' 0 OJ) "0 S 00 '" 0" - 0: ,1:: '" I ...."Cl ., P. ;:l ..0 <I) ~ ~ Ii:: 0 <I) .... <I) ~ 0 ..0 'j; oal 8 'j; ~ 0 8 U = "0 <I) '" '.g .... .~ OJ) 'a ., ~ '" el <I) '" <i-< <I) to: <I) <E <I) = "0 > :a <I)::r: <I) :a 0 a .l:l u M ;:l <I) P._ ~ '" <I) d) '" '" ~ N ..0 - 0 ,~ t: t: 0) ,s .1:: .g> 1:: 00 0) .... <I) " 0: ~ t5 0: ~ 0 ~ '" OJ) - <I) 0 '" <I) s 0 >+:: - 0) 0 S M City of Andover 4/21/2011 General Fund 2010 Fund Balance Analysis 2010 Estimated Budget December 31, 2009 $ 4,328,412 2010 Pre-Audit Fund Balance Increase (Decrease) 782,493 Projected Decem ber 31, 2010 5,110,905 Less: Snow Emergency (70,000) Public Safety (70,000) Facility Management (70,000) Information Technology (70,000) MVHC (490,186) Prepaids I Inventories (206,666) Working Cash Flow (3,660,102) Estimated Balance Available for Adjustments $ 473,951 2010 Working Cash Flow Designation Calculation: 2011 Requested Expenditure $ 9,150,255 % of 2011 General Fund Expenditures 40.00% $ 3,660,102 , GF - Fund Balance.xls , - q - .-.... 0 April 12, 2011 '.' Jim Dickinson, City Administrator City of Andover 1685 Crosstown Boulevard NW Andover, MN 55304-2612 RE: Potential Refunding of Existing Bonds Ehlers is committed to ensuring that your community's best interests are being met. As part of that commitment, Ehlers conducts a review of your existing bonds and an analysis of whether a potential refunding would lower debt service costs to the benefit of your community and residents. Attached is summary snapshot of how current market conditions might impact potential refunding savings. The analysis includes the impact on potential current and advance refundings. Markets move and your needs change, so we encourage you to contact us with any questions or concerns regarding refundings or other needs within your community. J Sincerely, {/l1{ ~ ! fit !f(7E/L (~ JUS:; A foUL;4.J ufJ n Mark Ruff CU!Z 11 tt17l1/(, r- Senior Financial Advisor I~~ HL8 /%;ce , e ~O~'~U~C~A! - )D ., wvvw. ehlers-inc, com Minnesota phone 651-697-8500 3060 Centre Pointe Drive Offices also in Wisconsin and Illinois fax 651-697-8555 Rooeville, MN 55113-1122 .",gf ~~ ~~0 0 0 O~ C~~ C ~ ~oo a~~ ~ ~ bI)'- ~ ...... v OJ 0 '"3"'S =: r.I.l Q) (;d 1-4 ;... <.) 0 '_'_U~ Q)__~ 0 ]15sij onij:S:<= ~ ~ ,,~-o ~~~~ :: ~ ~'V -;"'(1)- 00 V;::Rroo.. ~;:::::l>o.. S:::,... ;",oCC'd OU;;>O.... E C\J -ci ~;:J Cd ;... C ro;... OJ) OJ) Q) C\J Q) '" 0 ro .:::S s::: I: .2: T""" "'0 6~S~ u6!:::o :a:.a 0 L";" <= ",0<<=<" ~ O~ '" <= 0 ClC') tE ~;':~;:::::l (1)~N~ c.E! c.E! JJT""" Q) 1-40=~ ~~~= Q) Q) 0 ~~ ~ ~ ~ ~ '; ur ~ N .~ ~ ~ c & lO 8 -~~~ ]o~"'O ............ I IDZ VI C C'd€A-ti)- OC 0 ro ro C/) l:::;~ =C':l o:S'O~S ..o""O~- -:S o:S L c. .....;> r.I.l"'" ..... .....1\ ""::: ro Q) VI V'J Q) Q) Q) =""0 .- V'J.......- o..nJ ..... 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