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10/10/2017 - City Council SpecialSPECIAL CITY COUNCIL MEETING TUESDAY, OCTOBER 10, 2017 5:30 P.M. EAGAN ROOM EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. JOINT MEETING WITH ENERGY AND ENVIRONMENT ADVISORY COMMISSION IV. 2018 EAGAN CONVENTION AND VISITORS BUREAU BUDGET V. 2018 ENTERPRISE AND SPECIAL REVENUE FUND BUDGETS VI. REVIEW OF LICENSING AND REGULATING ALCOHOL AT VIKING LAKES VII. OTHER BUSINESS VIII. ADJOURNMENT Agenda Information Memo October 10, 2017 Eagan Special City Council Workshop III. JOINT MEETING WITH ENERGY AND ENVIRONMENT ADVISORY COMMISSION Direction For Consideration: This is an informational item and discussion, therefore no specific action is required. Pending the Council’s direction, a final work plan and goals will be executed by the Advisory commission. Facts:  EEAC and City Council meets at a combined workshop one time per year to go over previous year’s successes, current year’s goals and work plan, and discuss any items City Council would like for the Commission to work on in the next year.  EEAC goals from 2017 were as follows: o Community Outreach and Education – utilize some of our own resources to further educate the community on a variety of energy and environment related topics. For 2017 a big focus was on educating local residents on the dangers of radon in homes. o GreenSteps Cities program – research and look at achieving Level 4 status. As the Council knows in June the City was awarded the Level 4 status. o Research other cities and their respective bans on plastic bags. This goal really stalled due to initial research showing that possible legislation wouldn’t allow this to be a local government regulation.  EEAC projected goals for 2018 include: o Research other local governments and their ordinance/city code in relation to green energy and regulations that allow or don’t allow and regulate certain opportunities. o Continue the Community Outreach and Education efforts started in 2017 on a variety of programs and topics. o Research Green Steps Level 5 program and look at how this could be strategically achieved over the next few years.  There should be time after the presentation to discuss any other energy and environment related topics that are important to City Council or which Council would like to see integrated into future work plans for the EEAC. Attachments: (0) Agenda Information Memo October 10, 2017, Special Eagan City Council Meeting IV. 2018 EAGAN CONVENTION AND VISITORS BUREAU BUDGET Direction For Consideration: To hear an overview of the 2018 marketing priorities and receive the Board-adopted 2018 ECVB budget and direct that it be placed on a future regular City Council meeting consent agenda for formal ratification. Facts:  The Eagan CVB’s 2018 budget process began early this summer, and has been reviewed by the ECVB Finance Committee which includes City of Eagan’s Assistant Finance Director, Josh Feldman. The budget was also reviewed separately by City Liaison Tom Garrison.  A 4% budget increase has been approved by the Eagan CVB’s Board of Directors during their October 5 Board meeting. City Liaison Tom Garrison and Mayor Mike Maguire were present for Board action.  While the Eagan CVB Board operates independently from the City, Section 3.2 of the Operating Agreement with the City of Eagan requires the ECVB to submit its work plan and operating budget to the City Council for its “review and approval.”  As Eagan prepares to welcome the Minnesota Vikings to its new headquarters and practice facility in 2018, the Eagan CVB will be ready to promote Eagan’s newest destination attraction throughout the Upper Midwest. Training Camp represents a unique opportunity to host and promote Eagan throughout a 10-state region as a great place to shop, eat and stay.  The ECVB will once again play an active role in spearheading promotional efforts for Eagan’s July 4th Funfest, Art Festival, Market Fest and Caponi Art Park while also working with officials from Cascade Bay Waterpark and the Eagan Civic Arena on joint marketing efforts for 2018.  The Eagan CVB’s primary mission of promoting Eagan as a preferred destination for leisure travelers, tour groups, meeting attendees and sports tournaments is backed by a creative and comprehensive sales and promotion plan. The Bureau will also target marketing efforts on the Canadian providences of Manitoba and Ontario.  Communications Director Garrison and ECVB President & CEO Brent Cory will make a very brief presentation and be available to answer any questions relative to the ECVB’s 2018 budget. Attachments: (2) IV.-1 Summary and Highlighted changes of the ECVB Budget IV.-2 ECVB Budget Eagan Convention and Visitors Bureau Proposed 2018 Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, President & CEO City Liaison: Tom Garrison City Council ECVB Board Representation: Mayor Mike Maguire PURPOSE & DESCRIPTION The purpose of the Eagan Convention and Visitors Bureau is to: • Promote Eagan as a major conference, meeting and tourist destination through creative marketing and sales efforts. • Generate a greater economic impact for Eagan, thus enhancing the quality of life for all residents. The Eagan Convention and Visitors Bureau is responsible for the following functions: • Increasing travel to Eagan by individuals, tour groups and meeting attendees, as well as increasing guest visits to area hotels, attractions, restaurants and retail outlets. • Promoting Eagan through advertising, public and media relations, creative promotions and collateral, website/Internet initiatives, and e-commerce/direct mail campaigns. • Participating in trade shows, women’s expos, sales missions, targeted sales calls and familiarization tours aimed at generating leads and business prospects for Eagan. PERFORMANCE INDICATORS 2016 2017 2018 Description Actual Estimate Estimate Amount of lodging tax generated $967,499 $910,000 $1,020,000 Qualified leads generated through 113,694 125,000 150,000 advertising/promotional/sales efforts HIGHLIGHTS & CHANGES Overview: A wide spectrum of travel segments already sees Eagan as an attractive and affordable destination for visitors, thanks to the ECVB’s substantial marketing and branding efforts through the years. Eagan’s consistently been active in the marketplace With the addition of the Minnesota Vikings in 2018 and Viking Lakes, ECVB staff see an unprecedented opportunity to position Eagan as an elite destination for decades to come. Like the City of Eagan’s recent new logo and updated brand identity, the ECVB is completing fresh new branding aligned with highly innovative and creative marketing campaigns to position Eagan, its many amenities it has to offer, while capitalizing on Eagan as the new home of the Vikings. Included in the extensive marketing to the Viking fan base outside the metro area will be an extensive digital campaign with a larger geographic reach than ever before. ECVB will continue promoting Eagan’s existing array of amenities, including Cascade Bay, Twin Cities Premium Outlets, and our diverse retail, dining and lodging options as well. Highlight/Change 1: ($100,000) Over a quarter of our advertising dollars will be invested in digital marketing with measurable results/conversions.In addition to geotargeting Vikings fans, the ECVB will continue marketing to shoppers with household incomes of $75,000 and above while also focusing on group sports tournament directors and meeting planners. Highlight/Change 2: ($25,000) Because of the addition of TCO Stadium into our community efforts are being increased to promote Eagan as a sports tournament destination. In addition to the Division III tournaments, Minnesota State High School league sports opportunities (football, lacrosse, soccer, etc) and “regular” tournaments, the ECVB will national conferences to promote Eagan as a first-class tournament town. New memberships are also being added to two national sports marketing organizations in an effort to build Eagan’s brand at a higher level. Highlight/Change 3: ($20,000) Working with regional Vikings media partnerships, the ECVB will promote Eagan and Viking Lakes as the new home Training Camp beginning in 2018. One of the largest opportunities will be a PR push aimed at befriending media contacts and securing coverage in order to share destination Eagan stories to emphasize not just training camp, but access to the complex throughout the year, with the goal of visitors planning multiple trips and staying longer when visiting. Highlight/Change 4: ($30,000) Promoting other core Eagan market drivers such as Twin Cities Premium Outlets and Cascade Bay Waterpark remain a strong focus. Itinerary builders and reservation revenue builders will be built into the ECVB website along with more geographic-friendly features and mobile offerings. POSITION INVENTORY Personnel 2014 2015 2016 2017 Hours President & CEO 1 1 1 1 2,080 Sales Director 1 1 1 1 2,080 Tourism Sales Director 1 1 1 1 2,080 Marketing Manager 1 1 1 1 2,080 Marketing Coordinator 1 1 1 1 2,080 Total 2018 WORK PLAN Activity Routine 1. Generate and fulfill inquires from leisure, group tour, business, meeting travelers and Sports tournament directors. 2. Create/distribute collateral promoting Eagan’s hotels, restaurants, attractions and shopping destinations to target markets. 3. Conduct sales missions aimed at generating increased travel/economic impact for Eagan. 4. Work closely with hospitality partners to continually keep Eagan top of mind in identified market segments. 5. Provide superior customer service to guests interested in the many amenities Eagan has to offer. 2015 2016 2017 2018 Actual Actual Budget Budget INCOME Lodging tax 905,379$ 967,499$ 950,000$ 1,020,000$ Other 7,672 8,747 21,100 15,500$ Utilization of reserves 75,000 75,000 25,000 -$ Total Income 988,051 1,051,246 996,100 1,035,500$ EXPENSES Personnel 298,395 294,656 320,000 330,500$ Other 131,330 131,069 128,250 135,500$ Marketing 548,509 544,750 520,100 540,000$ Travel & Entertainment 24,571 22,626 27,750 29,500$ Total Expenses 1,002,805 993,101 996,100 1,035,500$ Net income (14,754)$ 58,145$ -$ -$ Eagan Convention & Visitors Bureau Proposed 2018 Budget % Budget vs. Budget 2015 2016 2017 2018 Change Actuals Actuals Budget Budget 2017 to 2018 INCOME Tax Income 905,379$ 967,499$ 950,000$ 1,020,000$ 7.4% Interest Income 1,088 861 500 500 0.0% Explore MN Tourism Coop 6,584 7,886 15,600 7,000 -55.1% Undesignated Reserves 75,000 75,000 25,000 - -100.0% Misc. Income - - 5,000 8,000 60.0% Total Income 988,051 1,051,246 996,100 1,035,500 4.0% EXPENSES Personnel Expenses Salaries 250,324 245,709 267,000 275,000 3.0% Health Insurance 24,290 22,803 24,000 25,000 4.2% Payroll Expenses (FICA, etc.)20,210 20,460 22,000 22,500 2.3% SIMPLE Matching Funds 3,571 5,684 7,000 8,000 14.3% Subtotal 298,395 294,656 320,000 330,500 3.3% Other Expenses Accounting 21,166 22,389 22,000 23,000 4.5% Annual Meeting/Awards Program 4,693 4,574 5,000 5,500 10.0% Auto Expenses 523 2,417 2,000 750 -62.5% Contract Labor 12,448 9,521 10,500 11,000 4.8% Depreciation 9,824 8,728 10,000 10,500 5.0% Donations 550 800 500 500 0.0% Dues/Subscriptions 8,874 11,023 6,000 7,000 16.7% Education/Training 10,320 13,002 12,500 13,000 4.0% Equipment Lease 725 663 750 750 0.0% Equipment Maintenance 5,848 4,651 1,000 3,500 250.0% Insurance 4,969 4,967 6,500 6,500 0.0% Legal Fees - - 1,000 1,000 0.0% Meetings 3,621 2,417 2,500 3,000 20.0% Office Supplies/Equipment 9,276 6,764 7,000 7,500 7.1% Rent 32,759 34,160 34,000 35,000 2.9% Telephone 5,734 4,993 7,000 7,000 0.0% Subtotal 131,330 131,069 128,250 135,500 5.7% Marketing Expenses Advertising 355,598 312,313 350,000 370,000 5.7% FAM 3,949 3,811 5,000 5,500 10.0% Fulfillment House Services 9,912 3,448 5,600 6,000 7.1% Postage 16,572 10,031 9,000 10,000 11.1% Promotion 108,263 111,836 85,000 100,000 17.6% Research 9,430 53,000 30,000 7,500 -75.0% Telecommunications Services 7,387 7,235 6,000 6,500 8.3% Trade Show 14,776 22,115 12,000 16,000 33.3% Website/Mobile Technology 22,622 20,961 17,500 18,500 5.7% Subtotal 548,509 544,750 520,100 540,000 3.8% Travel & Entertainment Transportation 9,742 8,081 10,000 11,000 10.0% Entertainment 28 - 750 - -100.0% Meals 2,541 1,739 3,500 4,000 14.3% Lodging 12,260 12,806 13,500 14,500 7.4% Subtotal 24,571 22,626 27,750 29,500 6.3% Total Expenses 1,002,805 993,101 996,100 1,035,500 4.0% Net Income (14,754)$ 58,145$ -$ -$ Proposed 2018 Budget Eagan Convention & Visitors Bureau Agenda Information Memo  October 10, 2017 Special City Council Workshop      V. 2018‐2019 ENTERPRISE AND SPECIAL REVENUE FUND BUDGETS    Direction For Consideration:      To provide direction to staff regarding the proposed 2018‐2019 fund budgets for:    ENTERPRISE FUNDS:  o Public Utilities (Water, Sanitary Sewer, Street Lighting, Storm Drainage and  Water Quality)  o Civic Arena  o Cascade Bay  o Community Center  o AccessEagan/Fiber Infrastructure    SPECIAL REVENUE FUND  o E‐TV     To direct that the budgets be placed on a future City Council meeting Consent Agenda  for formal ratification, or studied further.   Direct the Finance Committee to address matters identified below (Civic Arena and  AccessEagan), as appropriate.    Facts:     GENERAL INFORMATION     By definition, enterprise funds are established to account for self‐supporting activities  with revenues primarily from user fees at rates set by the City Council.   The Budget Team—City Administrator Osberg, Assistant City Administrator Miller,  Finance Director Pepper, Assistant Finance Director Feldman—met with the following  responsible budget managers to review and discuss the respective budget proposals and  operating issues:  o Public Utilities Budgets ‐ Public Works Director Matthys, Transportation  Operations Engineer Plath, Utilities Superintendent Eaton, and Water Resources  Manager Macbeth  o Civic Arena and Cascade Bay ‐ Parks and Recreation Director Pimental, Facilities  Manager Vaughan   o Community Center ‐  Parks and Recreation Director Pimental, Community Center  Manager Grange  o AccessEagan ‐ Communications Director Garrison and IT Manager Cook to review  and discuss the respective proposals and operating issues.  o E‐TV – Communications Director Garrison and E‐TV Studio Supervisor Ongstad  Agenda Information Memo  October 10, 2017 Special City Council Workshop     Staff responsible for these budgets will be available at the meeting to expand on policy  issues and respond to questions.    2018 and 2019 highlights for each operating budget are included in the detail pages in  the usual budget book format.  Additional comments about each fund are noted below:      PUBLIC UTILITIES (Water, Sanitary Sewer, Street Lighting, Storm Drainage and Water Quality)     The Public Utilities Fund budgets note a net cash outflow of $3.0 million in 2018 and  $4.48 million in 2019.  The higher than usual outflow amounts are from the increased  capital improvement costs in the Public Utilities budgets.  Capital expenditures by  nature can result in large fluctuations in expenditures from year to year.  We anticipate  these fluctuations and plan for them accordingly.   Included in these costs are $1.0  million in 2018 and $2.0 million in 2019 for the water reclamation project that is  considered tentative at this time due to its unique nature.  It is anticipated that the  water reclamation project would have grants or other funding sources besides City  funds, although no other sources have been firmly identified at this time, and are not  included as revenue in the in the attached budgets.   The City participates in an annual utilities rate survey by AE2S, an engineering consulting  firm.  In the 2016 survey, Eagan’s combined rates for water, wastewater and  stormwater ranked 3rd lowest among the 28 Twin Cities metro communities responding  to the survey.  Survey results for 2017 are not yet available.   User rates for the utilities are approved annually with the Fee Schedule adoption in  December.  An internal rate study of utilities rates based on Springsted’s 20‐year model  has been completed.  The following rate increases are proposed as a result of our study:  o Water:  5.00 %  o Sanitary sewer:  3.15 %   o Street lighting:  3.50 %  o Storm drainage/water quality:  1.74 %        CIVIC ARENA     Comparable rates are included in the attachment for review and analysis.  The Council  will be asked to adopt all rates when the City‐wide fee schedule is adopted in  December.  These rates include an increase a $5 increase in the prime‐time and non‐ prime hourly ice rates.   The 2018 and 2019 Civic Arena budgets do not include a reduction of the outstanding  $2,223,000 internal loan from the Utilities budget.   DIRECTION FOR CONSIDERATION:  Staff requests that the Council consider directing the  Finance Committee to address options with respect to the internal loan that is not being  paid.     Agenda Information Memo  October 10, 2017 Special City Council Workshop      CASCADE BAY     2018 will be the 20th year that Cascade Bay will be operational.  Total attendance for the  facility amounts to just over 2.2 million patrons.  In 2016, attendance count for the year  totaled 127,645.  In 2017 rose to 118,501.  The facility’s best year was in 2001 with  168,109 patrons.   Actual results for 2017 were down approximately $100,000 from 2016 but were higher  then budgeted.  Cooler weather in 2017 may have contributed to the revenue decline.       COMMUNITY CENTER     The Community Center continues to serve Eagan’s residents and businesses as a fitness  center and event and meeting facility.  2018 will be the Community Center’s 15th year of  operation.   From the Community Center’s inception, it was recognized that fee revenues from  operations would be insufficient to cover operating expenses.  The budget has always  been balanced by way of a transfer of antenna lease revenues from the Public Utilities  fund.  The 2018 and 2019 budget calls for utilization of $349,100 and $378,000 of  antenna lease revenue, respectively.   This is less than 20% of the proposed Community  Center budgets for each year.     The 2018 and 2019 levy for the Community Center bonds, which is excluded from the  operating budget, is about $1.1 million.  The bonds will be paid off in 2021.      ACCESSEAGAN/FIBER INFRASTRUCTURE     Expenditures continue to exceed revenue for AccessEagan operations.  To date, the City  Council has approved and committed a $3 million investment.  By the end of 2017, we  are estimating a deficit of $0.2 million if the actual match the budget.  In addition, based  on the 2018‐2019 budgets, we anticipate an additional $0.5 million investment will be  needed to pay for budgeted expenditures.     Staff continues to build expertise while improving service to existing customers.  In  addition, staff is able to better capture sales opportunities with improved internal and  external partnerships.    DIRECTION FOR CONSIDERATION:   Staff requests that the Council consider directing the  Finance Committee to address possible sources of AccessEagan operations funding to be  identified by staff.        Agenda Information Memo  October 10, 2017 Special City Council Workshop      E‐TV     The proposed E‐TV operational budgets are mostly status quo except for significant  capital investments.   Franchise fee negotiations are ongoing and expected to continue into 2018.         Attachments: (3)    V‐1 2016 Metro Utility Rate Survey Results  V‐2 2018‐2019 Enterprise Fund Budgets  V‐3 2018‐2019 E‐TV Budget   i MINNEAPOLIS/ST. PAUL METRO AREA Maple Grove, MN $28.86 Farmington, MN $36.50 Eagan, MN $37.57 Spring Lake Park, MN $39.83 Oakdale, MN $41.68 Eden Prairie, MN $42.06 Apple Valley, MN $42.09 Ramsey, MN $42.82 Plymouth, MN $44.09 Hopkins, MN $44.41 Shakopee, MN $45.88 Mounds View, MN $46.24 Anoka, MN $46.29 Savage, MN $46.56 Champlin, MN $48.05 Fridley, MN $52.07 Minnetonka, MN $52.62 Dayton, MN $52.93 Richfield, MN $53.65 Victoria, MN $57.04 Columbia Heights, MN $57.70 St. Louis Park, MN $58.24 Falcon Heights, MN $62.33 Robbinsdale, MN $65.88 Prior Lake, MN $67.13 Waconia, MN $7118 Mahtomedi, MN $7312 Minneapolis, MN $75.13 $0.00 $30.00 $60.00 $90.00 $120.00 $150.00 49 www.ae2s.com www.ae2snexus.com 2018‐2019 Proposed Budget Operating Budget            Enterprise Funds                      1 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget                                        Sanitary Street Storm Water Quality Revenues: Service charges 5,355,075$ 7,215,500$ 743,000$ 1,012,000$ 1,518,000$ 15,843,575$ Connection permits 8,000 8,000 - - - 16,000 Meter sales 40,000 - - - - 40,000 Other 16,000 19,000 3,500 - 35,000 73,500 Total revenues 5,419,075$ 7,242,500$ 746,500$ 1,012,000$ 1,553,000$ 15,973,075$ Operating Expenses: Personal services 1,968,800 798,200 10,500 125,400 503,000 3,405,900 Supplies, repairs, maint.465,200 96,500 - 12,100 51,100 624,900 Other services & charges 1,925,500 380,300 575,600 321,400 173,000 3,375,800 Merchandise for resale 21,300 - - - - 21,300 Transfers Out 774,500 368,200 38,100 25,400 73,000 1,279,200 MCES disposal charges - 5,198,200 - - - 5,198,200 Total operating expenses*5,155,300$ 6,841,400$ 624,200$ 484,300$ 800,100$ 13,905,300$ Net operating cash inflow(outflow 263,775 401,100 122,300 527,700 752,900 2,067,775 Capital 3,423,100 1,169,000 142,500 152,000 1,586,600 6,473,200 *Excluding depreciation expense Other non-departmental revenues: Interest income 335,000 Connection charges 250,000 Antenna lease revenue (excludes ECC allocation 775,200 Other 40,100 Total - non-dept revenue 1,400,300 Net cash inflow (outflow)(3,005,125)$ Public Utilities Fund 2018 Budget Revenue and Expense Summary TOTALSWater Sewer Lighting Drainage 2 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget                            Sanitary Street Storm Water Quality Revenues: Service charges 5,621,329$ 7,442,500$ 769,450$ 1,028,000$ 1,542,000$ 16,403,279$ Connection permits 8,000 8,000 - - - 16,000 Meter sales 40,000 - - - - 40,000 Other 16,000 19,000 3,500 - 35,000 73,500 Total revenues 5,685,329$ 7,469,500$ 772,950$ 1,028,000$ 1,577,000$ 16,532,779$ Operating Expenses: Personal services 2,063,400 798,800 11,200 131,400 529,500 3,534,300 Supplies, repairs, maint.553,200 153,500 - 12,100 50,600 769,400 Other services & charges 1,905,500 368,700 612,300 311,200 173,200 3,370,900 Merchandise for resale 21,300 - - - - 21,300 Transfers Out 774,500 368,200 38,100 25,400 73,000 1,279,200 MCES disposal charges - 5,502,000 - - - 5,502,000 Total operating expenses*5,317,900$ 7,191,200$ 661,600$ 480,100$ 826,300$ 14,477,100$ Net operating cash inflow(outflow 367,429 278,300 111,350 547,900 750,700 2,055,679 Capital 3,371,800 1,273,000 42,500 143,000 3,157,000 7,987,300 *Excluding depreciation expense Other non-departmental revenues: Interest income 355,000 Connection charges 250,000 Antenna lease revenue (excludes ECC allocation 810,500 Other 40,100 Total - non-dept revenue 1,455,600 Net cash inflow (outflow)(4,476,021)$ Public Utilities Fund 2019 Budget Revenue and Expense Summary Water Sewer Lighting Drainage TOTALS 3 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget                          Actual Actual Budget Budget Budget Acct 2015 2016 2017 2018 2019 4175 County Grants 37,949              ‐                        ‐                       ‐                       ‐                       4228 Eng / Financial Information 553                  180                  300 300 300 4230 Printed Material/Other Fees 504                   ‐                        ‐                       ‐                       ‐                       4242 Maint Equipment and Personnel 9,361               14,251             8,900 9,000 9,000 4243 Manual Reading‐Ded Bill Meters 1,040               1,000               600 800 800 4305 Equipment Rental 230                  154                   ‐                       ‐                       ‐                       4511 Sale of Property ‐ Other 9,340               10,734             ‐                      ‐                      ‐                       4610 Interest on Investments 266,524           259,904           180,000           280,000 300,000 4612 Interest on Assessments 57,620             61,178             50,000             55,000 55,000 4613 Interest on Interfund Receivable ‐                        ‐                        ‐                       ‐                       ‐                       4615 Change in Fair Value of Inv (19,800)            12,067              ‐                       ‐                       ‐                       4617 Antenna Lease Admn Fees 28,800             9,600               3,000               10,000             10,000              4618 Site Survey / Eng Applic Review 4,600               600                  4,300               2,000               2,000                4619 Antenna Lease Landscape Escow 3,200                ‐                       5,000                ‐                       ‐                       4620 Antenna Site Rent (excludes ECC) 613,610           591,197           664,600           775,200           810,500            4658 Vehicle Sales ‐                       43,130              ‐                       ‐                      ‐                       4675 Wetlands  Conserv Appl  Fee 600                  700                  ‐                      ‐                      ‐                       4680 Connection Charge‐‐Water 202,847           458,189           200,000           200,000           200,000            4685 Conn Chg‐‐Water Treatmt Plant 43,831             75,038             180,000           50,000             50,000              4691 Other Revenue 20,238             2,675               ‐                  ‐                      ‐                       4822 Other Reimbursements 343,796           125,310           ‐                  ‐                      ‐                       4981 Capital Contributions 468,802           ‐                       ‐                  ‐                      ‐                       2,170,898        1,765,833        1,307,100        1,400,300        1,455,600         GRAND TOTAL 15,248,579$    16,210,619$    16,676,900$    17,373,375$    17,988,379$     2018‐19 Budget PUBLIC UTILITIES ENTERPRISE FUND Detail of  Revenues ‐ cont'd 4 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget      Public Utilities – Water (61)    Responsible Manager:  Jon Eaton, Superintendent of Utilities    PURPOSE & DESCRIPTION    The purpose of the Public Utilities – Water Department is to:   Produce, treat, store and distribute safe and clean potable water for the  City of Eagan.   Continuously monitor the quality of the drinking water supply and  maintain compliance to all State and Federal requirements.   Provide skilled and trained personnel to operate and maintain the water  supply/treatment/storage/distribution, sewer collection, and storm  drainage conveyance systems.    The Public Utilities – Water Department is responsible for the following functions:   Inspect and maintain the water distribution system, including point‐of‐use metering.   Inspect and maintain the storm water conveyance system and assist with natural resources water quality  objectives.   Supply and treat all potable water needed within the City including sampling, testing and chemical  treatment to assure water quality that meets or exceeds State and Federal health standards.  Inspect and  maintain storage facilities, wells, and pressure control stations.   Respond to customer needs on a daily basis and be available on a 24/7 basis for emergencies.   Assist other departments when needed.      PERFORMANCE INDICATORS        2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 12             26             10             10             10              2,879       2,885       3,100       3,100       3,100        79             78             75             75             75              840           840           840           840           840            677           543           600           600           600            742           889           800           800           800            2,654       3,625       3,800       3,800       3,800        661           661           600           600           600            535           585           600           600           600            9,173       9,106       8,400       8,400       8,400        Meter  service calls Customer service calls Water main breaks/Service Leaks Residential  per capita usage MN Dept. of Health samples collected Backflow preventers  tested Millions of gallons of safe drinking water  produced Hydrants  flushed Hydrants  painted Locates  performed 5 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water (61)  Responsible Manager:  Jon Eaton, Superintendent  of Utilities    HIGHLIGHTS & CHANGES    Overview:  The proposed 2018 Water operating  budget shows an increase of $160,100 or 3.2%  from the 2017 budget. A majority of the increase  comes from increased costs in energy and  contractual services.  The proposed total Water  budget, including capital, increases $498,800 or  6.2% over the prior year. The majority of the increase comes from an advanced meter system and the painting of  two water towers with the new City Logo.      The proposed 2019 Water operating budget shows an increase of $162,600 or 3.2% from the 2018 budget  proposal. A majority of the increase comes from the anticipated addition of asset management software and  health insurance and cost of living adjustments to salaries. The total 2019 Water budget has a proposed overall  budget increase of $111,300 or 1.3%.     Highlight/Change 1: Meter reading equipment to collect commercial, industrial and institutional water use has  exceeded its life cycle. Radio batteries are failing at an increasing rate and the mobile electronic equipment is no  longer supported. Utilities is proposing to update this system with an advanced meter system.   Financial Impact:  $510,000 one‐time purchase cost (6670) and $14,000 annual licensing/maintenance fee (6270).  A $250,000 savings is estimated over the next 5 years if the work is completed in one year versus a 5‐year period.  Service Level Impact:  This will save up to 60 hours per month of staff time and continues the City’s ability and  initiative to read non‐residential meters remotely, while providing opportunity for City and customers to review  water usage at any time which will help identify problems sooner and may lead to conservation.      Highlight/Change 2: Public Works proposes the addition of an asset management software for implementation in  2019. Public Works (Streets, Utilities and Water Resources) manages infrastructure valued at nearly $1 billion.  Better management of assets, including maintenance, life‐cycle, future cost, etc., will help the City better plan,  both physically and financially, for future costs.  Proceeding with the asset management system acquisitions would  only occur with further review and approval of the Budget Team.   Financial Impact:  The software is expected to cost upwards of $200,000 in total between Water, Sewer and Storm  Drainage funds. $67,000 is budgeted in Water in 2019, plus $16,000 for consulting costs (6310).    Service Level Impact:  More effectively manage public assets in a way that better aligns with City goals and  strategies, providing higher quality of life for customers at reduced cost.    Highlight/Change 3: Public Works proposes the addition of a GIS Technician/Operations Support Specialist in 2018  to manage Geographic Information System use. Public Works has utilized GIS for over 20 years to help track  infrastructure valued at nearly $1 billion. Additional data collection and management of the infrastructure is  needed to more fully utilize GIS to help the City better plan for future improvements.    Financial Impact:  Total cost of position is $105,600; $17,600 (one‐sixth) is budgeted in Water (6110)   Service Level Impact:  More effectively track public infrastructure to better meet goals and strategies.      Continued on next page          6 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget  Public Utilities – Water (61)     Responsible Manager:  Jon Eaton, Superintendent of Utilities      HIGHLIGHTS & CHANGES (CONT’D)    Highlight/Change 3:  With the new City logo, the largest logos of all are proposed to be updated in phases on the  water reservoirs.  Public Works proposes to update two reservoirs a year beginning in 2018, utilizing the Capital  Improvement Plan to limit the cost impact.        Reservoir maintenance and repair for the Lexington/Diffley site was scheduled as part of the CIP in 2019 at an  estimated cost of $250,000.  It is proposed that the CIP improvements be advanced one year and include the new  logo for cost efficiency.  Financial Impact:  $470,000 additional funds over the 2018‐2019 biennium. The Lex/Diffley water tower was due  to be rehabbed in 2019 and much of the cost will be absorbed as part of the improvement.  Service Level Impact:  Timely implementation of new City logo as part of the new branding campaign.    Highlight/Change 5: Auditing of utility billing accounts has increased revenue due to the discovery of billing errors.  Consultant services are proposed to perform a city‐wide review of the Utility Billing accounts for accuracy in 2018.  Financial Impact:  $30,000 annual increase (6310)  Service Level Impact:  Improve utility billing account accuracy and increase revenue.      EXPENSE SUMMARY                    Location Year Est. Cost Lex/Diffley 2018 130,000 Deerwood 2018 130,000 Safari 2019 130,000 Yankee 2019 130,000 Actual Actual Budget Budget Budget Expenses 2015 2016 2017 2018 2019 Personal  Services 1,542,126$  1,634,095$  1,864,000$  1,968,800$  2,063,400$   Parts  and Supplies 383,809        307,132        454,300        465,200        553,200         Services  and Other Charges 1,551,898     1,451,553     1,881,100     1,925,500     1,905,500      Merchandise for Resale ‐                 ‐                 21,300          21,300          21,300           Capital  Outlay 1,341,177     67,707          3,084,400     3,423,100     3,371,800      Transfer  Out 1,019,924     855,393        774,500        774,500        774,500         Total Operating Expenses 5,838,934$  4,315,880$  8,079,600$  8,578,400$  8,689,700$   Depreciation Expense 2,372,122$  2,461,333$  2,271,700     2,271,700     2,271,700      7 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget      Public Utilities – Water (61)  Responsible Manager:  Jon Eaton, Superintendent of Utilities      POSITION INVENTORY        2018‐2019 WORK PLAN     Personnel 2015 2016 2017 2018 2019 Hours 0.67 0.67 0.67 0.67 0.67 1,394        111112,080        0.33 0.33 0.33 0.33 0.33 686            111112,080        1 0.92 1 1 1 2,080        GIS Coordinator 0.61 0.61 0.61 0.61 0.61 1,269        1111.171.172,434        0.5 0.5 0.5 0.5 0.5 1,040        444448,320        3555510,400      11000 ‐             Clerical  Tech IV 001112,080        Public Works  Director 0.24 0.24 0.24 0.24 0.24 499            UB/SA Accountant 0.61 0.61 0.61 0.61 0.61 1,269        UB/SA Clerk 0.61 0.61 0.61 0.61 0.61 1,269        011112,080        Total 15.57 18.49 18.57 18.74 18.74 38,979      Superintendent Water Production/Treatment Supervisor Utility Field Operations Supervisor Utilities Inspector Administrative Assistant (System Analyst) GIS Specialist GIS Technician Senior Instrumentation Technician System Maintenance Workers Utility Technician Water Treatment/Production  Workers Activity Routine 1 2 3 4 5 6 Water Administration GIS/GPS Administration Emergency call  outs Water Field Operation/Repair Erosion  control Treatment Plant/Production 8 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water (61)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    LINE ITEM DETAIL      Actual Actual Budget Budget Budget Acct PERSONAL SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND  WAGES‐REGULAR 1,095,184$   1,167,020$   1,299,500$   1,358,400$    1,419,900$    6112 OVERTIME‐REGULAR                   13,801          16,418          65,300          69,000            69,000           6130 SALARIES AND  WAGES‐TEMPORARY 39,750          24,757          32,800          42,700            42,700           6142 PERA‐COORDINATED                   83,332          88,674          102,400       107,100         111,700        6144 FICA                               82,512          86,728          106,900       112,500         117,200        6151 HEALTH INSURANCE 185,706       208,124       220,000       240,700         263,100        6152 LIFE 1,629            1,432            ‐                ‐                  ‐                 6154 DISABILITY ‐ LONG TERM 3,124            3,463            ‐                ‐                  ‐                 6155 WORKERS COMPENSATION               37,088          37,479          37,100          38,400            39,800                    TOTAL PERSONAL SERVICES 1,542,126    1,634,095    1,864,000    1,968,800      2,063,400     PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    2,566$           3,804$           3,500$           3,500$            3,500$            6212 OFFICE SMALL EQUIPMENT 98                  188               100               100                 100                6215 REFERENCE MATERIALS 81                  412               300               300                 300                6220 OPERATING SUPPLIES‐GENERAL         3,177            3,079            3,200            3,200              3,200             6222 MEDICAL/RESCUE/SAFETY SUPPLIES     3,362            1,774            5,800            5,800              5,800             6223 BUILDING/CLEANING SUPPLIES         3,274            1,129            4,000            4,000              4,000             6224 CLOTHING/PERSONAL EQUIPMENT        4,214            4,349            5,900            6,100              6,100             6230 REPAIR/MAINTENANCE SUPPLIES‐GENERAL 2,955            4,383            5,000            5,000              5,000             6231 MOBILE EQUIP REPAIR PARTS          3,910            3,788            5,600            5,600              5,600             6232 SMALL EQUIPMENT REPAIR PARTS 797               740               500               700                 700                6233 BUILDING REPAIR SUPPLIES           24,492          29,058          20,000          25,000            25,000           6235 FUEL, LUBRICANTS, ADDITIVES         18,190          14,915          28,900          28,900            28,900           6240 SMALL TOOLS                        5,842            6,481            6,000            6,500              6,500             6244 CHEMICALS & CHEMICAL PRODUCTS      91,917          76,937          103,000       106,000         113,000        6250 LANDSCAPE MATERIAL & SUPPLIES       ‐                75                  2,000            2,000              2,000             6255 STREET REPAIR SUPPLIES             13,321          1,982            15,000          15,000            15,000           6257 SIGNS & STRIPING MATERIAL           ‐                ‐                500               500                 500                6260 UTILITY SYSTEM PARTS/SUPPLIES      84,594          95,476          139,500       139,500         139,500        6270 COMPUTER SOFTWARE                  121,019       58,562          105,500       107,500         188,500                TOTAL PARTS & SUPPLIES 383,809       307,132       454,300       465,200         553,200        SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES‐GENERAL      248,333$      170,430$      350,400$      315,000$       315,000$       6311 LEGAL  26,674          24,689           ‐                ‐                  ‐                 6314 AUDITING                           7,300            7,400            7,300            7,300              7,300             6323 TESTING SERVICES                   9,033            11,199          10,800          12,600            12,600           6346 POSTAGE                            2,000            2,747            3,100            3,100              3,100             6347 TELEPHONE SERVICE & LINE CHG       24,031          18,723          26,000          26,000            26,000           6351 PAGER SERVICE FEES                 132               55                   ‐                ‐                  ‐                 6352 TELEPHONE CIRCUITS                 1,629            1,629            1,800            1,800              1,800             6353 PERSONAL AUTO/PARKING 7                    15                  100               100                 100                6355 CELLULAR TELEPHONE SERVICE         4,543            4,711            4,600            7,100              7,100             6370 GENERAL PRINTING AND BINDING       192               ‐                3,700            3,700              3,700             9 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water (61)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    LINE ITEM DETAIL (CONT’D)         Actual Actual Budget Budget Budget SERVICES & OTHER CHARGES 2015 2016 2017 2018 2019 6385 INSURANCE                          79,600$        79,600$        79,600$        79,600            79,600           6408 ELECTRICITY‐LIFT STATIONS 10,501          10,899          ‐                     ‐                       ‐                      6409 ELECTRICITY‐WELLS/BOOSTER STN      642,226       616,775       776,100       777,300         777,300        6410 NATURAL GAS SERVICE                93,779          69,861          101,000       114,300         114,300        6425 MOBILE EQUIPMENT REPAIR LABOR      3,116            552               1,000            1,000              1,000             6426 SMALL EQUIPMENT REPAIR 3,312            635               1,500            1,500              1,500             6427 BLDG OPERATIONS/REPAIR‐LABOR       72,523          85,935          214,000       234,000         214,000        6429 STREET REPAIR‐LABOR ‐                     24,677          10,000          10,000            10,000           6430 COMMUNICATION SYSTEM REPAIR ‐                      ‐                     20,000          20,000            20,000           6432 UTILITY SYSTEM REPAIR‐LABOR         178,500       158,430       110,000       150,000         150,000        6457 MACHINERY & EQUIPMENT‐RENTAL ‐                     1,422            1,000            1,000              1,000             6475 MISCELLANEOUS 51                   ‐                      ‐                      ‐                        ‐                      6476 CONFERENCES AND SCHOOLS            11,261          13,636          27,200          27,300            27,300           6477 LOCAL MEETING EXPENSE         40                   ‐                     200               200                 200                6478 TUITION AND BOOK REIMBURSEMENT ‐                     1,526            2,100            2,100              2,100             6479 DUES AND  SUBSCRIPTIONS             13,407          12,972          14,200          14,700            14,700           6480 LICENSES, PERMITS AND TAXES        40,843          41,463          48,600          48,600            48,600           6487 VISA/MC BANK CHARGES 11,184          14,908           ‐                     ‐                       ‐                      6805 TRANSFER OUT 1,019,924    855,393       774,500       774,500         774,500        6535 OTHER CONTRACTUAL SERVICES 47,918          36,621          38,000          38,000            38,000           6537 JANITORIAL SERVICE 9,698            10,002          5,100            5,500              5,500             6539 WASTE REMOVAL/SANITATION SERV      377               226               1,100            1,100              1,100             6561 TEMPORARY HELP‐LABOR/CLERICAL ‐                     17,423          ‐                       ‐                      6569 MAINTENANCE CONTRACTS              2,526            10,601          11,600          11,600            11,600           6575 MCES DISPOSAL CHARGES              7,162            1,791            11,000          11,000            11,000            OTHER SERVICES AND CHARGES          2,571,822    2,306,946    2,655,600    2,700,000      2,680,000     MERCHANDISE FOR RESALE 6855  MERCHANDISE FOR RESALE               ‐                ‐                21,300          21,300            21,300                   MERCHANDISE FOR RESALE ‐                ‐                21,300          21,300            21,300           TOTAL  OPERATING 4,497,757    4,248,173    4,995,200    5,155,300      5,317,900     3.2%3.2% CAPITAL OUTLAY 6660  OFFICE FURNISHINGS & EQUIPMENT 2,436            1,050             ‐                22,000            ‐                      6670  OTHER EQUIPMENT                     2,236            11,281          13,900          524,700         15,500           6680  MOBILE EQUIPMENT 2,095            11,281          60,000          40,000            30,000                  CAPITAL OUTLAY 6,767            23,612          73,900          586,700         45,500           CAPITAL/CONSTRUCTION PROJECTS 6630  RENEWAL & REPLACEMENT ‐ OUTLAY 1,268,465    75,441          459,000       1,477,000      735,000        6700  CONSTRUCTION PROJECTS 65,945          (31,346)        2,551,500    1,359,400      2,591,300     1,334,410      44,095            3,010,500      2,836,400      3,326,300       TOTAL  CAPITAL 1,341,177    67,707          3,084,400    3,423,100      3,371,800     11.0%‐1.5% TOTAL  WATER DEPARTMENT 5,838,934$    4,315,880$    8,079,600$    8,578,400$    8,689,700$     6.2% 1.3% DEPRECIATION 6488 DEPRECIATION EXPENSE 2,372,122    2,461,333    2,271,700    2,271,700      2,271,700     10 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget                                            This page intentionally left blank                                              11 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Sewer (62)  Responsible Manager:  Jon Eaton, Superintendent of Utilities     PURPOSE & DESCRIPTION    The purpose of the Public Utilities – Sewer Department is to:   Provide uninterrupted sanitary sewer conveyance services for the City.    Meet all State and Federal standards in waste water management.   Provide skilled and trained personnel to operate and maintain the water  distribution system, sewer collection/conveyance, and storm drainage conveyance  systems.    The Public Utilities – Sewer Department is responsible for the following functions:   Maintain sanitary sewer collection and conveyance system including pipes, manholes, and lift stations.   Report to all State and Federal agencies required by law.   To inspect and maintain the waste water collection system and ensure its sanitary conveyance to the  Metropolitan Treatment Facility at Seneca.   To inspect and maintain the storm water conveyance system and assist with natural resources water  quality objectives.   Respond to customer needs on a daily basis and be available on a 24/7 basis for emergencies.   Assist other departments as directed.      PERFORMANCE INDICATORS    2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 23,336       29,251       80,000       80,000        80,000         61               46               100             100              100               7,269         7,544         7,500         7,500          7,500           19,656       19,739       19,800       19,800        19,800         Televised sewer pipe, in feet Sewer pipe jetted, in miles Sewer pipe relined, in feet Sewer Connections 12 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Sewer (62)  Responsible Manager:  Jon Eaton, Superintendent of  Utilities    HIGHLIGHTS & CHANGES    Overview:  The proposed 2018 Sewer operating  budget shows an increase of $102,200 or 1.5% from  the 2017 budget. The majority of the proposed  increase would be from the MCES sewer rate increase.   The total budget, including capital, proposes an overall  increase of $55,200 or 0.8%. The majority of the  increase is also from increase costs in waste treatment services (MCES).    The proposed 2019 Sewer operating budget shows an overall increase of $287,900 or 4.2% from the 2018 budget.  The majority of the proposed increase would be from the MCES sewer rate increase.  The total budget proposes an  overall increase of $269,900 or 3.3%. The majority of the increase would come from increased costs in waste  treatment services (MCES) and the portion of a yet‐to‐be‐determined asset management system.    Highlight/Change 1:  The Metropolitan Council Environmental Services (MCES) operates and maintains the large,  intercommunity sanitary sewers and related facilities (640 miles of pipe, 61 lift stations, 188 meter stations)  necessary to collect and transport wastewater from community sewer systems to eight regional wastewater  treatment plants in the Twin Cities area. The associated MCES Wastewater Disposal charges are set to increase  from 2017 fees. The fees are established by MCES and allocated to cities for sewage treatment based on their  proportionate share of the metro wide total flow.  Due to the success of the City’s Inflow & Infiltration program,  Eagan’s rate increase is only 1.8% as compared to the 3.7% average rate increase.   Financial Impact:  $91,900 increase (6575)  Service Level Impact:  None.    Highlight/Change 2: Public Works proposes the addition of a GIS Technician/Operations Support Specialist in 2018  to manage Geographic Information System use. Public Works (Streets, Utilities and Water Resources) has utilized  GIS for over 20 years to help track infrastructure valued at nearly $1 billion in 2017. Additional data collection and  management of the infrastructure is needed to more fully utilize GIS to help the City better plan for future  improvements.     Financial Impact:  Total cost of position is $105,600; $17,600 (one‐sixth) is budgeted in Sewer (6110)  Service Level Impact:  More effectively track public infrastructure in a way that allows the City to better meet goals  and strategies.    Highlight/Change 3: Public Works proposes the addition of an Asset Management software for implementation in  2019. Public Works (Streets, Utilities and Water Resources) manages infrastructure valued at nearly $1 billion.  Better management of assets (including maintenance, life cycle, future cost, etc.) will help the City better plan,  both physically and financially, for future costs.  Proceeding with the asset management system acquisitions would  only occur with further review and approval of the Budget Team.   Financial Impact:  The software is expected to cost upwards of $200,000 in total between Water, Sewer and Storm  Drainage funds. $67,000 is budgeted in Sewer in 2019, plus $16,000 for consulting costs (6310).    Service Level Impact:  More effectively manage public assets in a way that better aligns with City goals and  strategies, providing higher quality of life for customers at reduced cost.            Personal  Services 9% Parts and  Supplies 1% Services  and Other  Charges 69% Capital  Outlay 16% Transfer  Out 5% Expenditure by Category 13 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Sewer (62)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    EXPENSE SUMMARY        POSITION INVENTORY          2018‐2019 WORK PLAN                Actual Actual Budget Budget Budget Expense 2015 2016 2017 2018 2019 Personal  Services 564,096$       588,040$       718,900$       768,200$       798,800$        Parts and Supplies 44,265            42,055            85,000            96,500            153,500          Services  and Other Charges 4,850,834      5,135,774      5,629,000      5,670,400      5,870,700       Capital  Outlay 309,219         10,871            1,273,000      1,169,000      1,151,000       Transfer  Out 344,000         368,200         368,200         368,200         368,200          Total 6,112,414$    6,144,940$    8,074,100$    8,072,300$    8,342,200$     Depreciation Expense 806,232$       823,684$       753,400         753,400         753,400          Personnel 2015 2016 2017 2018 2019 Hours Superintendent 0.33 0.33 0.33 0.33 0.33 686               Utilities Operations Supervisor 0.67 0.67 0.67 0.67 0.67 1,387           Utility Technician 0.5 0.5 0.5 0.5 0.5 1,040           System Maintenance Workers 4 4 4 4 4 8,320           Public Works Director 0.12 0.12 0.12 0.12 0.12 250               GIS Coordinator 0.29 0.29 0.29 0.46 0.46 957               0 0 0 0.17 0.17 354               UB/SA Clerk 0.29 0.29 0.29 0.29 0.29 603               UB/SA Accountant 0.29 0.29 0.29 0.29 0.29 603               Total 6.49 6.49 6.49 6.83 6.83 14,199         GIS Technician 1 Sanitary sewer administration 2 Sanitary sewer field operation/repair maintenance 3I & I  mitigation 4Emergency call outs Activity Routine 14 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Sewer (62)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    LINE ITEM DETAIL                  Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND  WAGES‐REGULAR         408,159$      422,577$      476,800$      496,100$      515,000$      6112 OVERTIME‐REGULAR                   4,011            8,523            24,800          27,100          27,100         6130 SALARIES AND  WAGES‐TEMPORARY 2,689            4,430            32,800          42,700          42,700         6142 PERA‐COORDINATED                   31,114          32,198          37,600          39,200          40,700         6144 FICA                               30,516          31,949          40,900          43,300          44,700         6151 HEALTH INSURANCE 68,563          69,659          72,900          84,800          92,700         6152 LIFE 624               539               ‐                ‐                 ‐                6154 DISABILITY ‐ LONG TERM 1,168            1,272            ‐                ‐                 ‐                6155 WORKERS COMPENSATION               17,252          16,893          33,100          35,000          35,900         6157 RETIREE INSURANCE FUNDING ‐                ‐                ‐                ‐                 ‐                         TOTAL PERSONAL SERVICES 564,096       588,040       718,900       768,200        798,800       PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    900$               ‐$                    2,000$           2,000$          2,000$          6212 OFFICE SMALL EQUIPMENT ‐                      ‐                      ‐                      ‐                       ‐                     6215 REFERENCE MATERIALS ‐                      ‐                     200               200                200               6222 MEDICAL/RESCUE/SAFETY SUPPLIES     607               97                  3,100            13,100          3,100            6223 BUILDING/CLEANING SUPPLIES 49                   ‐                     300               300                300               6224 CLOTHING/PERSONAL EQUIPMENT        2,191            3,098            2,600            2,700             2,700            6230 REPAIR/MAINTENANCE SUPPLIES‐GENERAL 2,291            763               2,500            2,500             2,500            6231 MO BILE EQUIP REPAIR PARTS          2,785            8,171            16,600          16,600          16,600         6232 SMALL EQUIPMENT REPAIR PARTS 2,444            121               500               500                500               6235 FUEL, LUBRICANTS, ADDITIVES        21,239          13,138          30,100          30,100          30,100         6240 SMALL TOOLS                        7,050            789               3,000            3,000             3,000            6250 LANDSCAPE MATERIALS & SUPPLIES ‐                     3,116            2,000            2,000             2,000            6255 STREET REPAIR SUPPLIES             ‐                     ‐                     1,000            1,000             1,000            6260 UTILITY SYSTEM PARTS/SUPPLIES      4,109            11,353          20,500          20,500          20,500         6270 COMPUTER SOFTWARE                  600               1,409            600               2,000             69,000                 TOTAL PARTS & SUPPLIES 44,265          42,055          85,000          96,500          153,500       SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES‐GENERAL      21,980          32,227          169,400       106,000        94,000         6314 AUDITING                           7,300            7,400            7,300            7,300             7,300            6346 POSTAGE                            2,050            2,266            3,100            3,100             3,100            6347 TELEPHONE SERVICE & LINE CHG 7,482            7,518            7,800            7,800             7,800            6352 TELEPHONE CIRCUITS                 3,400            2,286            4,200            4,200             4,200            6353 PERSONAL AUTO/PARKING ‐                      ‐                     100               100                100               6355 CELLULAR  TELEPHONE SERVICE         3,431            3,293            2,900            5,100             5,100            6356 ONE CALL SERVICE FEES 11,319          12,971          13,900          13,900          13,900         6357 ADVERTISING/PUBLICATIONS ‐                     57                   ‐                      ‐                       ‐                     6358 EMPLOYMENT ADVERTISING ‐                      ‐                      ‐                      ‐                       ‐                     6359 LEGAL NOTICE PUBLICATION ‐                      ‐                      ‐                      ‐                       ‐                     6385 INSURANCE                          14,100          14,100          14,100          14,100          14,100         6405 ELECTRICITY 1,134            1,017             ‐                      ‐                       ‐                     15 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Sewer (62)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    LINE ITEM DETAIL (CONT’D)                       Actual Actual Budget Budget Budget SERVICES & OTHER CHARGES 2015 2016 2017 2018 2019 6408 ELECTRICITY‐LIFT STATIONS          23,958          24,138          27,300          27,000          27,200         6425 MOBILE EQUIPMENT REPAIR LABOR      (224)              6,853            10,000          10,000          10,000         6426 SMALL EQUIPMENT REPAIR 217               276               1,500            1,500             1,500            6428 FIELD/OTHER EQUIPMENT REPAIR‐LABOR 420               ‐                     ‐                     ‐                      ‐                     6429 STREET REPAIR‐LABOR                ‐                     ‐                     5,000            5,000             5,000            6430 COMM. SYSTEM REPAIR‐LABOR ‐                     ‐                     5,000            5,000             5,000            6432 UTILITY SYSTEM REPAIR‐LABOR        45,892          21,846          52,500          62,500          62,500         6440 I/I MITIGATION ‐ SUMP PUMP 593               1,156            20,000          20,000          20,000         6441 I/I MITIGATION ‐ OTHER 20,608          ‐                     63,000          63,000          63,000         6457 MACHINERY AND  EQUIPMENT            ‐                     ‐                     1,000            1,000             1,000            6476 CONFERENCES AND SCHOOLS            2,256            2,790            8,600            9,200             9,400            6477 LOCAL MEETING EXPENSES ‐                     ‐                     200               200                200               6479 DUES AND SUBSCRIPTIONS             1,022            1,020            1,100            1,100             1,100            6480 LICENSES, PERMITS AND TAXES        36                  2,160            600               600                600               6487 VISA/MC BANK CHARGES 11,184          14,908          2,400            2,400             2,400            6805 TRANSFER OUT 344,000       368,200       368,200       368,200        368,200       6535 OTHER CONTRACTUAL SERVICES         57,354          22,099          2,100            2,100             2,100            6537 CLEANING CONTRACTUAL SERVICES ‐                     5,100            5,500             5,500            6539 WASTE REMOVAL/SANITATION SERVICES ‐                     1,100            1,100             1,100            6569 MAINTENANCE CONTRACTS 300               300               1,500            1,500             1,500            6575 MCES DISPOSAL CHARGES              4,615,022    4,955,093    5,198,200    5,290,100     5,502,000            SERVICES & OTHER CHARGES          5,194,834    5,503,974    5,997,200    6,038,600     6,238,900    TOTAL  OPERATING 5,803,195    6,134,069    6,801,100    6,903,300     7,191,200    1.5%4.2% CAPITAL OUTLAY 6670 OTHER EQUIPMENT                    5,723            1,071            9,000            29,000           ‐                     6680 MOBILE EQUIPMENT ‐                     80,000          350,000        130,000              CAPITAL OUTLAY 5,723            1,071            89,000          379,000        130,000       CAPITAL/CONSTRUCTION  PROJECTS 6630 RENEWAL & REPLACEMENT (BUDGET ONLY) 303,259       9,800            684,000       690,000        671,000       6700  CONSTRUCTION PROJECTS 237               ‐                     500,000       100,000        350,000       303,496         9,800              1,184,000      790,000        1,021,000      TOTAL  CAPITAL 309,219       10,871          1,273,000    1,169,000     1,151,000    ‐8.2%‐1.5% TOTAL  SEWER DEPARTMENT 6,112,414$    6,144,940$    8,074,100$    8,072,300$  8,342,200$   0.0%3.3% DEPRECIATION 6488 DEPRECIATION EXPENSE 806,232$      823,684$      753,400$      753,400$      753,400       16 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Street Lighting (63)    Responsible Manager:  Tim Plath, Transportation Operations Engineer     PURPOSE & DESCRIPTION    The purpose of the Public Utilities – Street Lighting Department is to:   Provide adequate lighting for public safety on city streets and at signalized intersections  within the City of Eagan.   Provide the electrical power for the traffic control signals within the City of Eagan.   Coordinate the maintenance of the street lighting system for optimal performance.   Administer the maintenance of the traffic control signals’ operation and infrastructure.    The Public Utilities – Street Lighting Department is responsible for the following functions:   Coordinate the installation of street lights on all streets within City jurisdiction, both  private developments and public improvements.   Address maintenance needs of the street lighting system & traffic control signals within the City, including  light replacement, pole repair/refurbishment.   Provide field surveying, preparation of feasibility studies, reports and staff support at Council meetings for  public improvements for street lights.   Manage the reimbursement of electrical services for street lighting and traffic signals.   Update Capital Improvement Program for the City’s street light and traffic control signals.    Coordinate/present Public Hearings/Final Assessment Hearings for City improvements for street lights.      PERFORMANCE INDICATORS          2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 393 393 392 392 392 000130 90888 69 70 70 70 70 01000 Street lights maintained (city‐owned) New street lights installed (city‐owned) Upgrade existing street lights (utility‐owned) Traffic signals (city, county & state) New traffic  signals installed (city, county & state) 17 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Street Lighting (63)  Responsible Manager:  Tim Plath, Transportation  Operations Engineer    HIGHLIGHTS & CHANGES    Overview:   The proposed Street Lighting budget  shows an increase of $83,800, or 12.3% in 2018 and a  decrease of $62,600, or 8.9% in 2019 (relative to  2018) due to reduced project costs and slight  increases in projected electricity costs.    Highlight/Change 1:  Electricity‐ Street Lights (#6406) and Electricity – Signal Lights (#6407) show a slight decrease  in costs in 2018 and a slight increase in costs in 2019 due to anticipated increases in electricity rates.   Financial Impact: Decrease of $2,400 in 2018 and an Increase of $31,500 in 2019  Service Level Impact:  None  Highlight/Change 2:  Renewal and Replacement – Capital Outlay (#6630) is increased in 2018 due to the planned  installation of streetlights along Yankee Doodle Road.  The same account shows a decrease in 2019 due to the  completion of the capital improvement project in 2018.   Financial Impact: Increase of $100,000 in 2018 and decrease of $100,000 in 2019   Service Level Impact:  Improved community lighting along Yankee Doodle Road, from Coachman Road to  Federal Drive.                       18 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Street Lighting (63)  Responsible Manager:  Tim Plath, Transportation Operations Engineer    EXPENSE SUMMARY        POSITION INVENTORY        2018 ‐ 2019 WORK PLAN                              Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 9,000             9,400             10,100          10,500          11,200           Services  and Other Charges 486,269        470,480        592,200        575,600        612,300         Transfers  Out 35,700          38,100          38,100          38,100          38,100           Capital  Outlay 13,100          11,315          42,500          142,500        42,500           Total 544,069$      529,295$      682,900$      766,700$      704,100$       Depreciation Expense 12,797$        19,280$        19,300$        19,300$        19,300$         Personnel 2015 2016 2017 2018 2019 Hours Public Works Director 0.01 0.01 0.01 0.01 0.01 21              UB/SA Accountant 0.03 0.03 0.03 0.03 0.03 62              UB/SA Clerk 0.03 0.03 0.03 0.03 0.03 62              GIS Coordinator 0.03 0.03 0.03 0.03 0.03 62              Total 0.10 0.10 0.10 0.10 0.10 208            1Coordinate the installation of street lights on City streets  through private developments  or public  improvements 2Address maintenance needs  of the City’s  street lighting system & traffic control  signals 3Provide field surveying, feasibility studies/reports  and staff support at Council  meetings  for public improvements  for street lights 4 Manage the reimbursement of electrical  services for street lighting and traffic signals 5 Update Capital  Improvement Program for City’s  street light and traffic control  signals  6 Coordinate/present Public Hearings/Final Assessment Hearings  for City improvements  for street lights  Activity Routine 19 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Street Lighting (63)  Responsible Manager:  Tim Plath, Transportation Operations Engineer    LINE ITEM DETAIL            Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND  WAGES‐REGULAR         7,100$         7,400$         7,700$         8,100$          8,600$          6142 PERA‐COORDINATED                   400              400              600              600                600               6144 FICA                               500              500              600              600                700               6151 HEALTH INSURANCE 1,000           1,100           1,200           1,200             1,300                     TOTAL PERSONAL SERVICES 9,000           9,400           10,100        10,500          11,200         SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES ‐ GENERAL 3,238             2,320             5,000             5,000             5,000              6406 ELECTRICITY‐STREET LIGHTS          425,020        423,203        486,900        484,500        518,400         6407 ELECTRICITY‐SIGNAL LIGHTS           23,203          23,095          26,600          26,400          28,300           6411 UTILITY SYSTEM STREETLIGHT INSTALLATIONS 18                  ‐                      ‐                 ‐                 ‐                  6432 UTILITY SYSTEM REPAIR‐LABOR        18,067          16,912          66,700          52,700          53,600           6805 TRANSFER OUT 35,700          38,100          38,100          38,100          38,100           6535 OTHER CONTRACTUAL SERVICES 16,723          4,950             7,000             7,000             7,000              OTHER SERVICES AND CHARGES         521,969        508,580        630,300        613,700        650,400                 TOTAL  OPERATING 530,969$      517,980$      640,400$      624,200$      661,600$       ‐2.5% 6.0% Acct CAPITAL  OUTLAY 6630 RENEWAL AND  REPLACEMENT ‐ OUTLAY 13,100          11,315          42,500          142,500        42,500                  CAPITAL OUTLAY 13,100          11,315          42,500          142,500        42,500           TOTAL  CAPITAL 13,100          11,315          42,500          142,500        42,500           235.29%‐70.18% TOTAL  STREET LIGHTING DEPARTMENT 544,069$      529,295$      682,900$      766,700$      704,100$       12.3%‐8.2% 6488 DEPRECIATION EXPENSE 12,797$        19,280$        19,300$        19,300$        19,300$         20 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Storm Drainage (64)    Responsible Manager:  Jon Eaton, Superintendent of Utilities     PURPOSE & DESCRIPTION    The purpose of the Public Utilities – Storm Drainage Department is  to:   Maintain the City’s collection and conveyance system for  excess surface water runoff.    The Public Utilities – Storm Drainage Department is responsible for  the following functions:   Inspect and maintain drainage system consisting of pipes, ponds and pumping stations.   Maintain the inlets and outlets for ponds including the removal of any erosion/siltation that restricts the  flow or limits ponding capacities.   Respond to emergency pumping station alarms or resident calls during major peak events.   Assist with Water Quality programs and objectives as necessary to meet Federal, State, and City standards  and reporting requirements.      PERFORMANCE INDICATORS        2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target Televised storm pipes, in feet 0 890 0 1,000 1,000 Grease Trap Inspections 98 0 0 150 150 Construction inspections performed 149 208 125 125 125 Ponds  inspected 427 174 250 250 250 Control  structures checked 890 572 600 600 600 21 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Storm Drainage (64)    Responsible Manager:  Jon Eaton, Superintendent of  Utilities    HIGHLIGHTS & CHANGES      Overview:  The proposed 2018 Storm Drainage  operating budget shows an increase of $21,000 or  4.5% from the 2017 budget. The total 2018 Storm  Drainage budget, including capital, proposes an overall  decrease of $438,000 or ‐40.8%. A majority of the decrease comes from a proposed reduction in Capital  Improvements from 2017.    The proposed 2019 Storm Drainage operating budget shows a decrease of $4,200 or ‐0.9% from the 2018 budget.  The budget basically remains consistent, other than the Cost of Living Adjustment for staffing. The total Storm  Drainage budget has an overall decrease of $13,200 or ‐2.1%. A majority of the decrease comes from reductions in  capital improvements from 2018.    Highlight/Change 1:  A recommendation to improve the storm sewer system model was included in the 2017  Storm Water Management Plan update. The current system model has very limited capabilities. The long‐term goal  is to analyze flooding concerns and manage system operations with the model. Staff would be able to enter new or  updated infrastructure information in to the City’s GIS and incorporate said data into the updated future models.  The expectation is to spend $30,000 each year for the next 10 years to fill in missing data and improve data quality.  Financial Impact:   $30,000 increase (6310)  Service Level Impact:  Better anticipate problem areas and proactively address storm events.    Highlight/Change 2:  Storm lift stations have begun to show significant wear; costs to maintain and repair are  increasing. It is anticipated additional operational and maintenance costs will be needed to address repairs and  maintain equipment life cycles.  Financial Impact:   $30,000 increase (6432)  Service Level Impact:  Ensure system operation as needed.    Highlight/Change 3:  Utilities is proposing to begin contracting services in 2018 to clear access easements and at  least 10 feet around structures to improve access and infrastructure life.  Little to no general maintenance has  been performed around storm infrastructure (inlets, outlets, remote manholes, etc.). The growing weeds and trees  are having a negative impact on infrastructure life.   Financial Impact:   $50,000 increase (6432)  Service Level Impact:  Increase life of infrastructure and enhance accessibility in emergency events.    Highlight/Change 5: Public Works proposes the addition of an asset management software for implementation in  2019. Public Works (Streets, Utilities and Water Resources) manages infrastructure valued at nearly $1 billion.  Better management of assets, including maintenance, life cycle, future cost, etc., will help the City better plan,  both physically and financially, for future costs.  Proceeding with the asset management system acquisitions would  only occur with further review and approval of the Budget Team.   Financial Impact:  The software is expected to cost upwards of $200,000 in total between Water, Sewer and Storm  Drainage funds. $67,000 is budgeted in Storm Drainage in 2019, plus $16,000 for consulting costs (6310).    Service Level Impact:  More effectively manage public assets in a way that better aligns with City goals and  strategies, providing higher quality of life for customers at reduced cost.         22 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Storm Drainage (64)    Responsible Manager:  Jon Eaton, Superintendent of Utilities    EXPENDITURE SUMMARY        POSITION INVENTORY        2018‐2019 WORK PLAN                Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 109,894$      124,565$      115,700$      125,400$      131,400$       Parts  and Supplies 3,259             10,443          11,900          12,100          12,100           Services  and Other Charges 159,413        225,482        310,300        321,400        311,200         Transfers  Out 23,700          29,282          25,400          25,400          25,400           Capital  Outlay 136,228        21,040          611,000        152,000        143,000         Total 432,494$      410,812$      1,074,300$  636,300$      623,100$       Depreciation Expense 1,034,157$  1,040,627$  1,041,600$  1,041,600$  1,041,600$   Personnel 2015 2016 2017 2018 2019 Hours Operations Maintenance Worker111112,080  Public Works Director 0.01 0.01 0.01 0.01 0.01 21        UB/SA Clerk 0.02 0.02 0.02 0.02 0.02 42        UB/SA Accountant 0.02 0.02 0.02 0.02 0.02 42        GIS Coordinator 0.02 0.02 0.02 0.02 0.02 42        Total 1.07 1.07 1.07 1.07 1.07 2,226  Activity Routine 1 Inspection/clean‐up of structures 2Lift station maintenance 3 Weed harvesting 4Water quality support 5Aeration 6Storm response 23 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Storm Drainage (64)  Responsible Manager:  Jon Eaton, Superintendent of Utilities    LINE ITEM DETAIL            Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND WAGES‐REGULAR         69,233$          83,761$          68,000$          73,100$          77,300$           6112 OVERTIME‐REGULAR                   1,034               1,514               5,700               7,300               7,300                6130 SALARIES AND WAGES‐TEMPORARY       13,225            6,589               13,300            13,900            13,900             6142 PERA‐COORDINATED                   5,222               6,520               5,500               6,000               6,300                6144 FICA                               6,092               6,839               6,700               7,200               7,500                6151 HEALTH INSURANCE 11,717            15,349            10,200            11,100            12,000             6152 LIFE 110                  112                  ‐                   ‐                   ‐                    6154 DISABILITY ‐ LONG TERM 203                  262                  ‐                   ‐                   ‐                    6155 WORKERS COMPENSATION               3,058               3,619               6,300               6,800               7,100                        TOTAL PERSONAL SERVICES 109,894          124,565          115,700          125,400          131,400           PARTS & SUPPLIES 6210 OFFICE SUPPLIES 60                     ‐                   ‐                   ‐                   ‐                    6224 CLOTHING/PERSONAL EQUIPMENT        604                  444                  700                  700                  700                   6230 REPAIR/MTN SUPPLIES‐GENERAL 17                    206                  300                  300                  300                   6232 SMALL EQUIPMENT REPAIR PARTS ‐                   91                    ‐                   200                  200                   6233 BUILDING REPAIR SUPPLIES 17                    ‐                   ‐                   ‐                   ‐                    6235 FUEL, LUBRICANTS, ADDITIVES 6                       4                       400                  400                  400                   6240 SMALL TOOLS                        100                  720                  500                  500                  500                   6255 STREET REPAIR SUPPLIES ‐                   561                  1,000               1,000               1,000                6260 UTILITY SYSTEM PARTS/SUPPLIES      2,455               8,417               9,000               9,000               9,000                        TOTAL PARTS & SUPPLIES 3,259               10,443            11,900            12,100            12,100             SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES‐GENERAL      3,018               303                  120,000          58,000            46,000             6311 LEGAL 333                  1,602                ‐                   ‐                   ‐                    6385 INSURANCE                          3,900               3,900               3,900               3,900               3,900                6408 ELECTRICITY‐LIFT STATIONS          113,862          162,220          134,500          137,500          139,300           6429 STREET REPAIR‐LABOR ‐                   860                  ‐                   ‐                   ‐                    6432 UTILITY SYSTEM REPAIR ‐ LABOR 37,207            54,402            50,000            120,000          120,000           6457 MACHINERY AND EQUIPMENT            342                  2,019               1,000               1,000               1,000                6476 CONFERENCES AND SCHOOLS            340                  ‐                   400                  400                  400                   6480 LICENSES, PERMITS AND TAXES ‐                   176                  ‐                   100                  100                   6805 TRANSFER OUT 23,700            29,282            25,400            25,400            25,400             6539 WASTE REMOVAL/SANITATION SERVICE ‐                   ‐                   500                  500                  500                   6569 MAINTENANCE CONTRACTS 411                  ‐                   ‐                   ‐                   ‐                            OTHER SERVICES AND CHARGES         183,113          254,764          335,700          346,800          336,600           TOTAL  OPERATING 296,266          389,772          463,300          484,300          480,100           4.5%‐0.9% CAPITAL CONSTRUCTION/PROJECTS 6630 RENEWAL AND  REPLACEMENT ‐ OUTLAY 136,228          21,040            611,000          152,000          143,000           TOTAL  CAPITAL 136,228          21,040            611,000          152,000          143,000           ‐75.1%‐5.9%         TOTAL  STORM DRAINAGE DEPARTMENT 432,494$        410,812$        1,074,300$    636,300$        623,100$         ‐40.8%‐2.1% DEPRECIATION 6488 DEPRECIATION EXPENSE 1,034,157$    1,040,627$    1,041,600$    1,041,600$    1,041,600$     24 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water Quality (65)   Responsible Manager:  Eric Macbeth, Water Resources Manager     PURPOSE & DESCRIPTION    The purpose of the Public Utilities – Water Quality Department is to:   Protect and improve natural, aesthetic, and recreational  qualities of Eagan lakes and wetlands for enjoyment and use  by residents of the City and region.    The Public Utilities – Water Quality Department is responsible for the  following functions:   Direct implementation of Eagan Water Quality Management Plan.   Ensure City compliance with Minnesota Wetland Conservation Act rules.   Coordinate City compliance with Minnesota storm‐water discharge permit and impaired water  regulations.   Monitor and manage water resources and other land use activities directly or indirectly affecting water  resources.   Educate community about land and water issues relating to water quality, lakes, and wetlands.   Coordinate among city, county, state, and federal entities to protect and improve water resources.      PERFORMANCE INDICATORS                                                2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 14 14 13 14 11 13 13 13 13 13 Lakes  monitored  for  fish populations 2 2 3 1 1 70 60 50 60 60 75 80 90 80 80 300 0 300 0 400 Lakes, wetlands  monitored in long‐term program Lakes  aerated in winter  for fisheries Loads  of aquatic plants  removed  from lakes Youth Fishing Program participants Biennial  LakeFest attendees 25 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget        Public Utilities – Water Quality (65)  Responsible Manager:  Eric Macbeth, Water Resources  Manager    HIGHLIGHTS & CHANGES    Overview:   The 2018‐2019 Water Quality operating  budget has an increase of $79,500 or 11.0% in 2018 and  an increase of $26,200 or 3.3% in 2019. The proposed  budget continues recent initiatives to emphasize lake  improvements and lake protection, while expanding  capabilities to review plans, oversee implementation, and verify compliance with City of Eagan stormwater  management regulations. A significant majority of the first‐year’s increase relates to the proposed new full‐time,  permanent Stormwater Technician position.    Highlight/Change 1:  Personal Services increase due to proposed new full‐time, permanent Stormwater Technician  position, which will provide primary support for administrative requirements of Federal/State National Pollutant  Discharge Elimination System (NPDES)/Municipal Separate Storm Sewer System (MS4) General Permit and assist  with implementation of Eagan’s Stormwater Pollution Prevention Program (SWPPP).  2018 Financial Impact:  $94,500 increase in 2018 (Account 6110)  2019 Financial Impact:  COLA increase from 2018 (Account 6110)  Service Level Impact:  Consolidation of most of the MS4 Permit work under this new position will free up  time/resources of other departments’ staff to serve customers, enhance program efficiency, and support capacity  to address current unmet permit requirements and to respond to expected future increased and expanded  requirements. Without this position, some current and additional future MS4 requirements will go unmet,  subjecting the City to possible fines. Existing staff will be unable to meet workload demands and expectations.                                        26 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water Quality (65)  Responsible Manager:  Eric Macbeth, Water Resources Manager    EXPENDITURE SUMMARY            POSITION INVENTORY          2018‐2019 WORK PLAN         Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 376,036$     374,102$     394,700$     503,000$     529,500$      Parts  and Supplies 65,133         55,852         47,800         51,100         50,600          Services  and Other Charges 281,791       130,280       211,500       169,900       170,100        Other 3,080            3,080            3,100            3,100            3,100             Transfers  Out 59,300         63,500         63,500         73,000         73,000          Capital  Outlay 245,593       389,204       2,055,800    1,586,600    3,157,000     Total 1,030,933$ 1,016,018$ 2,776,400$ 2,386,700$ 3,983,300$  Depreciation Expense 97,838$       202,339$     95,700$       165,000$     165,000$      Personnel 2015 2016 2017 2018 2019 Hours 1 11112,080        1 11112,080        ‐‐‐1 1 2,080        111‐‐ ‐ ‐‐‐1 1 2,080        0.5 0.5 0.5 0.5 0.5 1,040        0.5 0.5 0 0 0 ‐             Public Works Director 0.02 0.02 0.02 0.02 0.02 42              UB/SA Accountant 0.05 0.05 0.05 0.05 0.05 104            UB/SA Clerk 0.05 0.05 0.05 0.05 0.05 104            GIS Coordinator 0.05 0.05 0.05 0.05 0.05 104            Total 4.17 4.17 3.67 4.67 4.67 9,714        Operations Support Specialist Clerical  Technician Water Resources  Manager Water Resources  Specialist  Water Resources  Technician  Stormwater Technician Watershed Specialist  1 2 3 4 5 6 7 8 9 10 Interagency coordination/partnerships Professional development/training Coordinate required Stormwater  Pollution Prevention  Plan  Monitor/coordinate required TMDL implementation  plans Enhance recreational fishing; assess ecological  conditions Manage grant projects/initiate new proposals Public education/involvement  Public relations/customer service Program administration/staff supervision/operations  & clerical  support Monitor & manage water  resources  and relevant land use activities Routine Activity 27 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water Quality (65)  Responsible Manager:  Eric Macbeth, Water Resources Manager    LINE ITEM DETAIL         Actual Actual Budget Budget Budget Acct PERSONAL SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND WAGES‐REGULAR         275,298$       271,668$       287,800$       362,700$       380,200$        6112 OVERTIME‐REGULAR 15                    238                 ‐                  ‐                  ‐                   6130 SALARIES AND WAGES‐TEMPORARY       8,828              8,328              8,900              9,400              9,400               6142 PERA‐COORDINATED                   20,540            20,565            21,600            27,200            28,500             6144 FICA                               19,717            18,935            22,700            28,500            29,800             6151 HEALTH INSURANCE 44,952            48,507            46,800            67,600            73,800             6152 LIFE 416                 347                 ‐                  ‐                  ‐                   6154 DISABILITY ‐ LONG TERM 820                 857                 ‐                  ‐                  ‐                   6155 WORKERS COMPENSATION               5,450              4,657              6,900              7,600              7,800                       TOTAL PERSONAL SERVICES 376,036         374,102         394,700         503,000         529,500          PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    111                 3                       ‐                  ‐                  ‐                   6215 REFERENCE MATERIALS                90                    ‐                  ‐                  ‐                  ‐                   6220 OPERATING SUPPLIES‐GENERAL         2,829              2,084              2,800              2,800              2,800               6224 CLOTHING/PERSONAL EQUIPMENT        773                 507                 600                 900                 900                  6227 RECREATION EQUIPMENT/SUPPLIES 1,775              2,270              2,600              3,400              2,900               6231 MOBILE EQUIP REPAIR PARTS          10,573            4,423              9,200              9,300              9,500               6232 SMALL EQUIPMENT REPAIR PARTS       472                 216                 700                 400                 400                  6234 FIELD/OTHER EQUIPMENT REPAIR       3,763              90                    2,500              1,500              1,500               6235 FUEL, LUBRICANTS, ADDITIVES        10,082            6,580              12,100            14,900            15,300             6240 SMALL TOOLS                        286                 370                 400                 400                 400                  6244 CHEMICALS & CHEMICAL PRODUCTS      9,612              29                    15,600            15,300            15,300             6250 LANDSCAPE MATERIAL & SUPPLIES      9,894              37,564            500                 500                 500                  6257 SIGNS & STRIPING MATERIAL          531                 806                 800                 500                 500                  6260 UTILITY SYSTEM PARTS / SUPPLIES 13,555            910                 ‐                  ‐                  ‐                   6270 COMPUTER SOFTWARE                  787                 ‐                  ‐                  1,200              600                          TOTAL PARTS & SUPPLIES 65,133            55,852            47,800            51,100            50,600             SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES‐GENERAL      123,362         30,121            71,000            39,800            40,600             6311 LEGAL ‐                  92                    ‐                  ‐                  ‐                   6323 TESTING SERVICES                   15,824            13,493            22,300            14,300            14,800             6328 SPECIAL EVENTS/ADMISSION FEES ‐                  1,949              ‐                  3,000              ‐                   6346 POSTAGE                            67                    ‐                  100                 ‐                  ‐                   6353 PERSONAL AUTO/PARKING              33                    127                 100                 100                 100                  6355 CELLULAR TELEPHONE SERVICE 2,453              2,027              2,000              2,800              2,800               6359 LEGAL NOTICE PUBLICATION 600                 ‐                  ‐                  ‐                  ‐                   6370 GENERAL PRINTING AND  BINDING       1,715              ‐                  1,000              ‐                  1,500               28 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Public Utilities – Water Quality (65)  Responsible Manager:  Eric Macbeth, Water Resources Manager    LINE ITEM DETAIL (CONT’D)                    Actual Actual Budget Budget Budget Acct SERVICES & OTHER CHARGES 2015 2016 2017 2018 2019 6385 INSURANCE                          8,000              7,574              8,000              8,000              8,000               6405 ELECTRICITY                        2,786              2,006              4,000              4,000              4,000               6425 MOBILE EQUIPMENT REPAIR‐LABOR ‐                  ‐                  200                 ‐                  ‐                   6426 SMALL EQUIPMENT REPAIR‐LABOR ‐                  11                    200                 ‐                  ‐                   6475 MISCELLANEOUS             106                 14                    ‐                  ‐                  ‐                   6476 CONFERENCES AND SCHOOLS            4,354              7,500              7,500              7,100              5,800               6477 LOCAL MEETING EXPENSES             12                    45                    ‐                  ‐                  ‐                   6479 DUES AND SUBSCRIPTIONS             3,657              3,484              5,400              5,300              5,600               6480 LICENSES, PERMITS AND  TAXES        228                 473                 400                 500                 600                  6495 WATERSHED MANAGEMENT ASSESSMNT     43,950            38,921            42,200            41,000            41,700             6805 TRANSFER OUT 59,300            63,500            63,500            73,000            73,000             6535 OTHER CONTRACTUAL SERVICES         74,644            21,702            46,200            43,100            43,700             6569 MAINTENANCE CONTRACTS ‐                  741                 900                 900                 900                  OTHER SERVICES AND CHARGES         341,091         193,780         275,000         242,900         243,100          OTHER 6860 COST SHARING PAYMENTS 3,080              3,080              3,100              3,100              3,100                    OTHER 3,080              3,080              3,100              3,100              3,100               TOTAL  OPERATING 785,340         626,814         720,600         800,100         826,300          11.0%3.3% Acct CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 3,550              2,043,500      1,574,600      3,150,800       6640 MACHINERY/EQUIPMENT 3,932              480                 2,800              1,000               ‐                   6660 OFFICE FURNISHINGS & EQUIPMENT ‐                  1,384               ‐                  2,000              ‐                   6670 OTHER EQUIPMENT 2,364              9,447              9,500              9,000              6,200               6680  MOBILE EQUIPMENT ‐                  3,277              ‐                   6700 CONTRUCTION PROJECTS 235,747         374,616         ‐                  ‐                  ‐                          CAPITAL OUTLAY 245,593         389,204         2,055,800      1,586,600      3,157,000       TOTAL  CAPITAL 245,593         389,204         2,055,800      1,586,600      3,157,000       ‐22.8%99.0% TOTAL  WATER QUALITY DEPARTMENT 1,030,933$    1,016,018$    2,776,400$    2,386,700$    3,983,300$     ‐14.0% 66.9% 6488 DEPRECIATION EXPENSE 97,838$         202,339$       95,700$         165,000$       165,000$        29 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    This page left intentionally blank    30 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Managers:  Andrew Pimental, Director of Parks & Recreation  Mark Vaughan, Campus Facilities Manager    PURPOSE & DESCRIPTION    The purpose of the Civic Arena is to:   Provide a positive environment for residents and guests of all ages to  gather.   Encourage and help build a sense of community through a wide  range of recreational and social opportunities.   Provide a high level of service, accessibility and professionalism to  expand revenue options to ensure the viability of this resource to the community.    The Civic Arena is responsible for the following functions:   Provide a wide variety of ice and dry floor related recreational opportunities for the public to enjoy.   Capture a high level of revenue to offset operational costs, debt repayment and expand the retained  earnings capacity to accommodate future growth and expansion.   Protect the city's community investment by maintaining the integrity and value of the building and its  amenities.   Create a welcoming atmosphere and solicit input from users to best determine how to meet existing  needs and identify future growth opportunities.   On‐going analysis of existing operation and research to find ways to expand the opportunities offered  year round in order to maximize the capital investment.      PERFORMANCE INDICATORS      2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 2,007 1,998 2,000 2,000 2,000 913 1,081 900 1,000 1,000 56 56 56 56 56 66 7 77 3,129 3,110 3,000 3,000 3,000 Participants in skate school  program Summer  hockey rental hours  (June 1‐Aug 31) Adult league team registrations Dry floor events Prime ice rental hours  (Oct 15 ‐ March 15) 31 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Managers:  Andrew Pimental,  Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    HIGHLIGHTS & CHANGES    Overview:  The 2018 operating budget is up  $14,700 (1.5%) from 2017.  This is primarily due to  routine increases in personnel and maintenance  contracts. The budget also reflects a $5 increase in  prime and non‐prime hourly ice/turf rates, to increase revenue and remain competitive with other area ice rinks.    The 2019 operating budget is up $47,600 (4.9%) from 2018.  This reflects personnel increases and maintenance  contracts. The budget also reflects a $5 increase in prime and non‐prime hourly ice/turf rates, to increase revenue  and remain competitive with other area ice rinks.    Highlight/Change 1:  With changing programs and events at the Eagan Civic Arena, there is a need for a  mobile/portable concession stand.  Currently the East rink does not have a concession stand.  A mobile concession  stand would be an option for use in the East rink during large events and at Cascade Bay.  Budget Impact: $10,000 expense increase.  Service level impact:  A mobile concession stand allows greater flexibility and opportunity for increased revenue  ($3,400), by offering concession sales at new locations and events at the Eagan Civic Arena.      Highlight/Change 2:  The East Storage Room needs additional shelving to maximize storage area by adding a rack  system to organize supplies and items used for seasonal events.    Financial Impact:  $8,000 increase to Capital.    Service Level Impact:  Quality shelving system will improve efficiencies in operation and provide a safer, more  organized storage solution.      Highlight/Change 3:  Credit card processing fees continue to increase, along with usage of credit/debit cards.    Financial Impact:  $3,000 increase.  Service Level Impact:  Accepting credit/debit card payments allows for better customer service, as credit is  becoming more increasingly the preferred method of payment.      Highlight/Change 4:   The Pro Shop and office space is undersized for the service and products that we offer.  Skate  rental rack system would be updated, along with improvements to skate sharpener and changes in full‐time office  spaces.    Budget Impact: Increase of $10,000  Service Level Impact:  An improved layout to the space would make distributing skate rentals during open skate  and large group rentals more organized and efficient.     32 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    POSITION INVENTORY – CIVIC ARENA          The Civic Arena and Cascade Bay share a number of staff.  The Cascade Bay staff complement is shown below:    POSITION INVENTORY – CASCADE BAY        2018‐2019 WORK PLAN                     Personnel 2015 2016 2017 2018 2019 Hours 0.67 0.67 0.67 0.67 0.67 1,394 1.00 1.00 1.00 1.00 1.00 2,080 0.50 0.50 0.50 0.60 0.60 1,248 0.50 0.50 0.50 0.70 0.70 1,456 0.20 0.20 0.20 0.20 0.20 416 1.00 1.00 0.80 0.80 0.80 1,664 Total 3.87 3.87 3.67 3.97 3.97 8,258 Campus  Facilities Operations  Coordinator Campus  Facilities Manager Skating School  Coordinator Campus  Facilities Maintenance Coordinator Custodian Clerical  Technician Personnel 2015 2016 2017 2018 2019 Hours 0.33      0.33      0.33       0.33      0.33      686      1.00      1.00      1.00       1.00      1.00      2,080  0.50      0.50      0.50       0.40      0.40      832      0.50      0.50      0.50       0.30      0.30      624      0.40      0.40      0.40       0.40      0.40      832      Total 2.73 2.73 2.73 2.43 2.43 5,054  Clerical  Technician Campus  Facilities  Operations  Coordinator Campus  Facilities  Manager Campus  Facilities  Maintenance Coordinator Custodian 1 2 3 4 5 6 7 8 9 10 11 12 Provide work direction to  ensure high level of customer service is maintained Respond to public comments  or requests via  phone or in person Daily maintenance of ice and cleaning of building Manage the building infrastructure to ensure efficient, safe and clean environment Develop promotional  materials  for facility Recruit, hire, train and supervise temporary and part time employees Develop and manage capital  improvements  and long range planning Develop and manage policies  & procedures  that best meet the needs  of the community Manage staff scheduling and training to  meet the demands  of the building Provide support to the day‐to ‐day concessions operation Establish and manage skate school program and auxilliary events Provide input and directions  pertaining to policies, budget and general  operation of CA 33 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    RENTAL RATES        ( source of data on other cities: staff phone survey of proposed rates for upcoming year). Ice time Prime Non-prime Off-peak notes Burnsville 225 200 (neg) 100 St.Thomas Ice Arena 220 160 (neg) only raising non prime Lakeville 225 160 (neg) Apple Valley 215 160 (neg) no change from 2017 Eagan 220 155 (neg)130 $5.00 increase for both prime and non Inver Grove Heights 210 145 (neg) no change for 2017 South St. Paul 210 155 (neg) only changed prime rate Richfield 210 155 (neg) no change for 2017 Rosemount 205 135 did not raise prime rate for 2017 Turf/Dry Floor Concreate Arena Floor Full Floor 95/hour 55/hour $700/day 1/2 floor remove remove remove Less than 24/hour notice remove Mezzanine Rental Hourly 8- hour rental Notes Resident 27/hour $200/8 hours Non-resident 31/hour $225/8 hours Staff proposes to remove Resident w/outside F & B 60/hour $440/8 hours Non-resident w/outside F & B 67/hour $500/8 hours Staff proposed to remove Community Room Eagan Hockey N/C Eastview Hockey N/C Eagan Figure Skating Club N/C Rental 20/hour Training Center Rooms Prime 27/hour Non-prime 15/hour Board Room Rate 15/hour 2018 proposed Hourly Rates 34 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    REVENUE SUMMARY      EXPENDITURE SUMMARY      Actual Actual Budget Budget Budget Acct REVENUES 2015 2016 2017 2018 2019 4304 OTHER REVENUE 9,478$          29,914$        ‐$                   ‐$                   ‐$                    4305 EQUIPMENT RENTAL 14,135 14,097 14,000          14,000          15,000           4310 PARK PROGRAM REVENUE (4311)270,266 286,349 261,500        279,300        285,800         4312 CONCESSION SALES 47,699 38,569 47,600          51,000          51,000           4314 MERCHANDISE SALES ‐ TAXABLE 8,220 6,128 8,000             8,000             8,000              4315 MERCHANDISE SALES ‐ NON TAXABLE 1,362 2,758 1,400             2,000             2,000              4320 MARKETING REVENUE 19,200 20,900 20,000          25,000          28,000           4322 VENDING (CITY OWNED)14,222 12,249 14,000          14,000          14,500           4323 VENDING (VENDORS)3,830 2,226 3,800             4,000             4,000              4324 ROOM RENTAL (4325) 37,761 48,971 37,700          41,100          42,100           4326 FACILITY/ICE RENTAL (4327) 673,128 698,914 681,000        686,300        711,300         4657 SALE OF CITY PROPERTY 29,452 2,334 ‐                 ‐                      ‐                       4663 CONTRIBUTIONS AND DONATIONS 528                96,835          ‐                 ‐                      ‐                              SUBTOTAL 1,129,281     1,260,244     1,089,000     1,124,700     1,161,700      TOTAL  CIVIC ARENA REVENUES 1,129,281$  1,260,244$  1,089,000$  1,124,700$  1,161,700$   3.3%3.3% Proposed Proposed Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 556,670$      574,501$      576,500$      588,500$      617,800$       Parts  and Supplies 51,519          50,677          60,800          62,900          66,100           Services  and Other Charges 275,780        275,126        286,900        287,500        297,600         Merchandise for Resale 37,274          39,038          40,000          40,000          45,000           Capital  Outlay 142,322        282,731        122,100        145,800        135,200         Debt Service (27,190)         25,014          2,700              ‐                 ‐                  Total 1,036,375$  1,247,087$  1,089,000$  1,124,700$  1,161,700$   Depreciation Expense 429,406$      441,974$      413,500$      425,000$      425,000$       35 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    EXPENSES DETAIL        Continued on next page   Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND WAGES‐REGULAR         258,524$      273,345$      255,200$      274,000$      289,700$       6112 OVERTIME‐REGULAR ‐                 66                  ‐                 ‐                 ‐                  6130 SALARIES AND  WAGES‐TEMPORARY       175,199        170,448        189,300        190,000        195,000         6142 PERA‐COORDINATED                   26,403          26,511          19,100          20,500          21,700           6144 FICA                               31,523          30,933          34,000          35,500          37,100           6151 HEALTH INSURANCE 54,875          63,971          69,800          58,900          64,300           6152 LIFE INSURANCE 467                429                ‐                 ‐                 ‐                  6154 DISABILITY ‐ LONG TERM 862                965                ‐                 ‐                 ‐                  6155 WORKERS COMPENSATION 8,817             7,833             9,100             9,600             10,000                   TOTAL PERSONAL SERVICES 556,670        574,501        576,500        588,500        617,800         PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    191                526                400                500                500                 6220 OPERATING SUPPLIES‐GENERAL         21,162          23,142          22,000          23,000          24,000           6222 MEDICAL/RESCUE/SAFETY SUPPLIES     476                508                500                500                600                 6223 BUILDING/CLEANING SUPPLIES         4,610             3,294             5,600             5,600             6,000              6224 CLOTHING/PERSONAL EQUIPMENT        905                790                2,000             3,000             3,500              6230 REPAIR/MAINTENANCE SUPP‐GENL       14,645          12,992          17,000          17,000          18,000           6233 BUILDING REPAIR SUPPLIES           7,821             5,613             10,000          10,000          10,000           6235 FUEL, LUBRICANTS, ADDITIVES        28                  21                  100                100                100                 6240 SMALL TOOLS                     ‐                 243                500                500                500                 6241 SHOP MATERIALS                     76                  135                500                500                500                 6244 CHEMICALS & CHEMICAL PRODUCTS      1,605             3,413             2,200             2,200             2,400                      TOTAL PARTS & SUPPLIES 51,519          50,677          60,800          62,900          66,100           SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES‐GENERAL 5,170             192                100                100                100                 6314 AUDITING 1,000             1,100             1,000             1,000             1,000              6346 POSTAGE                            138                142                300                300                300                 6347 TELEPHONE SERVICE & LINE CHG       633                477                2,500             2,500             2,500              6353 PERSONAL AUTO/PARKING              10                  ‐                 200                200                200                 6355 CELLULAR TELEPHONE SERVICE         991                1,288             1,200             1,500             1,500              6357 GENERAL ADVERTISING                2,338             4,178             10,500          10,500          10,500           6370 GENERAL PRINTING AND BINDING       917                1,206             1,500             1,500             1,500              6385 INSURANCE                          7,800             7,300             7,300             7,300             7,300              6405 ELECTRICITY                        158,072        140,784        150,000        145,000        149,000         6410 NATURAL GAS SERVICE                9,101             5,808             9,000             7,500             7,800              6457 MACHINERY AND EQUIPMENT            2,056             3,449             3,000             3,500             4,000              36 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Civic Arena  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    EXPENSES DETAIL (CONT’D)                            Actual Actual Budget Budget Budget SERVICES & OTHER CHARGES 2015 2016 2017 2018 2019 6476 CONFERENCES AND SCHOOLS            2,943$          875$              3,600$          3,300$          3,300$           6477 LOCAL MEETING EXPENSES             ‐                 ‐                 100                ‐                 ‐                  6479 DUES AND SUBSCRIPTIONS             1,140             1,402             1,100             1,300             1,500              6480 LICENSES, PERMITS AND  TAXES        1,476             753                1,100             1,100             1,100              6483 LOSS ON DISPOSAL OF PROPERTY ‐                 20,023          ‐                  6487 VISA/MC BANK CHARGES 18,216          21,418          17,000          20,000          21,000           6515 INTERFUND EXPENSES 393                ‐                 ‐                 ‐                 ‐                  6535 OTHER CONTRACTUAL SERVICES         21,301          15,552          22,400          22,400          24,400           6539 WASTE REMOVAL/SANITATION SERV      3,630             5,306             5,600             5,800             6,000              6569 MAINTENANCE CONTRACTS      38,455          43,873          49,400          52,700          54,600           SERVICES AND OTHER CHARGES 275,780        275,126        286,900        287,500        297,600         MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE             37,274          39,038          40,000          40,000          45,000                   MERCHANDISE FOR RESALE 37,274          39,038          40,000          40,000          45,000           TOTAL  OPERATING 921,243        939,342        964,200        978,900        1,026,500      1.5%4.9% CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 790                158,963         ‐                 21,000          10,000           6640 MACHINERY / EQUIPMENT 1,140              ‐                 ‐                 1,300             1,300              6660 OFFICE FURNISHINGS & EQUIPMENT 2,564             1,604             1,900             3,300             2,700              6670 OTHER EQUIPMENT                    17,628          5,364             ‐                 ‐                 1,000                     CAPITAL OUTLAY 22,122          165,931        1,900             25,600          15,000           RESERVE FOR RENEWAL & REPLACEMENT 120,200        116,800        120,200        120,200        120,200         120,200        116,800        120,200        120,200        120,200         TOTAL  CAPITAL 142,322        282,731        122,100        145,800        135,200         19.4%‐7.3% DEBT SERVICE 6491 INTEREST 1,451             ‐                 ‐                 ‐                 ‐                  6490 PRINCIPAL (LT and Current)(28,641)         25,014          2,700             ‐                 ‐                  TOTAL  DEBT SERVICE (27,190)         25,014          2,700             ‐                 ‐                  ‐100.0% #DIV/0! TOTAL  CIVIC ARENA 1,036,375$  1,247,087$  1,089,000$  1,124,700$  1,161,700$   3.3%3.3% 6488 DEPRECIATION & AMORTIZATION EXPENSE 429,406$      441,974$      413,500$      425,000$      425,000$       37 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget                        This page left intentionally blank    38 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Aquatic Facility ‐ Cascade Bay    Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    PURPOSE & DESCRIPTION    The purpose of the Aquatic Facility is to:   Provide a positive environment for residents and guests of all  ages to gather.   Encourage and help build a sense of community through a range  of recreational and social opportunities.   Provide a high level of service accessibility and professionalism  to expand revenue options to ensure the viability of this resource to the community.    The Aquatic Facility is responsible for the following functions:   Provide a wide variety of water‐related recreational opportunities for members and non‐members.   Capture a high level of revenue to offset operational costs and expand the retained earnings capacity to  accommodate future growth and expansion.   Protect the City's community investment by maintaining the integrity and value of the building and its  amenities.   Create a welcoming atmosphere and solicit input from users to best determine how to meet existing  needs and identify future growth opportunities.   On an ongoing basis, analyze existing operations and research ways to expand the recreational  opportunities beyond the three‐month pool season in order to maximize the capital investment.      PERFORMANCE INDICATORS      Proposed Proposed Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 605,758$      632,539$      628,100$      674,600$      699,100$       Parts  and Supplies 85,699          73,297          87,800          95,600          99,900           Services  and Other Charges 148,382        166,001        179,000        204,400        200,200         Merchandise for Resale 122,310        123,673        95,000          99,600          100,000         Capital  Outlay 103,760        93,016          96,000          95,900          95,900           Total 1,065,909$  1,088,526$  1,085,900$  1,170,100$  1,195,100$   Depreciation Expense 308,960$      365,111$      351,500$      352,000$      352,000$       39 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Aquatic Facility – Cascade Bay  Responsible Manager:  Andrew Pimental, Director of  Parks & Recreation   Mark Vaughan, Campus Facilities Manager    HIGHLIGHTS & CHANGES    Overview:  The 2018 Cascade Bay operating budget  reflects an increase of $84,300 (8.5%) to expenses,  from 2017. The budget also reflects a $60,900 (5.5%)  revenue increase from 2017. The budget reflects status quo operations at Cascade Bay with increased expenses  due largely to routine increases in personnel costs while maintaining same staffing levels as 2016.      The 2019 Cascade Bay operating budget reflects an increase of $25,000 (2.3%) to expenditures and a $25,000  (2.1%) revenue increase.     Highlight/Change 1:  Personnel costs for seasonal staff increased based on 2016 actuals and due to the increased  federal minimum wage.   Budget Impact: $35,000 increase (6130)  Service level impact:  Allows for same staffing levels as in previous years.      Highlight/Change 2:  Caulking and brick repairs and replacements are needed on the pool deck.    Budget Impact: Increase of $9,000 (6424)  Service level impact:  No service level impact.    Highlight/Change 3: Purchase and installation of pool lift for the main, leisure pool and the lazy river.  Lifts would  be installed one in 2018 and the other in 2019.    Financial Impact:  $8,000 increase (6660)  Service Level Impact:  Cascade Bay would be in compliance with ADA regulations for guests needing assistance  entering and exiting the pool.                                                     40 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Aquatic Facility – Cascade Bay  Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    CASCADE BAY POSITION INVENTORY        Cascade Bay and the Civic Arena share a number of staff.  The Civic Arena staff complement is shown below:    CIVIC ARENA POSITION INVENTORY        2018‐2019 WORK PLAN        Activity 1 2 3 4 5 6 7 8 Manage staff scheduling and training to meet the demands  of the building Respond to  public comments or requests  via  phone or in person Daily mainenance and cleaning of building and pool Manage the building infrastructure to  ensure efficient, safe and clean environment Develop promotional  materials  for seasonal facility Recruit, hire, train  and s upervise temporary  and part time employees Provide work direction to ensure high level of customer service is maintained Develop long range plans  and strategies for expanded service Routine 41 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Aquatic Facility – Cascade Bay  Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    REVENUE ESTIMATES        EXPENDITURE SUMMARY                          Actual Actual Budget Budget Budget Acct  REVENUES 2015 2016 2017 2018 2019 4160 STATE PERA AID 404$               740$               400$               ‐$                ‐$                 4304 OTHER REVENUE ‐ NON TAX 0 0 ‐                  ‐                  ‐                   4310/11 PARK PROGRAM REVENUE 16,233            17,114 17,000            18,000            20,000             4312/13 CONCESSION SALES 247,062         257,678 220,000         240,000         245,000          4314/15 MERCHANDISE SALES 16,507            17,870 17,000            17,000            19,000             4316/17 GROUP SALES 107,741         130,573 122,000         131,000         134,000          4318/19 DAILY ADMISSIONS 652,862         684,197 560,800         606,600         613,400          4320 MARKETING REVENUE (COKE)‐                  0 4,000              2,000              4,000               4321 MEMBERSHIPS 156,550         140,642 156,000         140,000         143,000          4322/23 VENDING 75                    0 ‐                  ‐                  ‐                   4326/27 FACILITY RENTAL 11,476            11,729 12,000            15,500            16,700             4331 TRANSIT TAX  EXEMPT REVENUE 840                 210 ‐                  ‐                  ‐                   4610 INTEREST INCOME 6,504              7,402 ‐                  ‐                  ‐                   4822 OTHER REVENUE‐cash short/over 2,136              3,291 ‐                  ‐                  ‐                          SUBTOTAL 1,218,392      1,271,446      1,109,200      1,170,100      1,195,100       TOTAL  AQUATIC FACILITY REVENUES 1,218,392$    1,271,446$    1,109,200$    1,170,100$    1,195,100$     5.5%2.1% Proposed Proposed Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 605,758$      632,539$      628,100$      674,600$      699,100$       Parts  and Supplies 85,699          73,297          87,800          95,600          99,900           Services  and Other Charges 148,382        166,001        179,000        204,400        200,200         Merchandise for Resale 122,310        123,673        95,000          99,600          100,000         Capital  Outlay 103,760        93,016          96,000          95,900          95,900           Total 1,065,909$  1,088,526$  1,085,900$  1,170,100$  1,195,100$   Depreciation Expense 308,960$      365,111$      351,500$      352,000$      352,000$       42 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Aquatic Facility – Cascade Bay  Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager    LINE ITEM DETAIL     Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND  WAGES‐REGULAR         130,493         143,551         160,500$       170,500$       179,000$        6112 SALARIES AND  WAGES‐OVERTIME ‐                  ‐                  ‐                  ‐                  ‐                   6130 SALARIES AND  WAGES‐TEMPORARY       379,689         389,904         355,000         390,000         400,000          6142 PERA‐COORDINATED                   9,552              10,641            12,000            12,800            13,400             6144 FICA                               37,776            39,488            39,400            42,900            44,300             6151 HEALTH INSURANCE 27,371            30,452            38,100            33,300            36,400             6152 LIFE INSURANCE 243                 222                 ‐                  ‐                  ‐                   6154 DISABILITY ‐ LONG TERM 473                 522                 ‐                  ‐                  ‐                   6155 WORKERS COMPENSATION               20,161            17,759            23,100            25,100            26,000                     TOTAL PERSONAL SERVICES 605,758         632,539         628,100         674,600         699,100          PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    259                 302                 400                 400                 400                  6211 OFFICE PRINTED MATERIAL/FORMS      410                  ‐                  700                 700                 700                  6212 OFFICE SMALL EQUIPMENT       ‐                  358                 100                  ‐                  ‐                   6215 REFERENCE MATERIALS 386                 (1,075)             500                 1,000              1,200               6220 OPERATING SUPPLIES‐GENERAL         4,903              7,675              6,000              7,000              7,000               6222 MEDICAL/RESCUE/SAFETY SUPPLIES     412                 791                 2,000              2,000              2,000               6223 BUILDING/CLEANING SUPPLIES         6,507              9,258              6,500              8,000              8,000               6224 CLOTHING/PERSONAL EQUIPMENT        5,948              4,069              6,000              7,000              8,000               6230 REPAIR/MAINTENANCE SUPP‐GENL       4,565              8,510              5,000              6,000              7,000               6231 MOBILE EQUIPMENT REPAIR PARTS 60                     ‐                  100                 100                 100                  6232 SMALL EQUIPMENT REPAIR PARTS 108                 154                 500                 500                 500                  6233 BUILDING REPAIR SUPPLIES           3,012              663                 4,000              5,000              5,000               6235 FUEL, LUBRICANTS, ADDITIVES 7                      ‐                  ‐                  100                 100                  6236 POOL REPAIR SUPPLIES 47                    430                 3,000              3,000              3,000               6240 SMALL TOOLS                     52                    231                 500                 500                 500                  6243 HEATING OIL, PROPANE AND  OTHER FUELS 462                 796                 500                 900                 900                  6244 CHEMICALS & CHEMICAL PRODUCTS      56,092            40,634            50,000            50,000            52,000             6257 SIGNS & STRIPING MATERIALS      1,819              501                 2,000              2,700              2,700               6270 COMPUTER SOFTWARE 650                  ‐                  ‐                  700                 800                          TOTAL PARTS & SUPPLIES 85,699            73,297            87,800            95,600            99,900             SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 3,134               ‐                  5,000              2,000              2,000               6314 AUDITING 1,100              1,100              1,100              1,000              1,000               6315 FINANCIAL NON‐AUDIT ‐                   ‐                  100                  ‐                  ‐                   6346 POSTAGE                            2,139              2,370              3,000              3,000              3,000               6347 TELEPHONE SERVICE & LINE CHG       528                 477                 1,000              600                 600                  6353 PERSONAL AUTO/PARKING              5                      ‐                  200                 100                 100                  6355 CELLULAR TELEPHONE SERVICE         989                 1,154              1,500              1,500              1,500               6357 ADVERTISING/PUBLICITY/PROMOTION 565                 3,015              5,000              10,000            10,000             6370 GENERAL PRINTING AND BINDING       859                 1,241              1,200              1,200              1,200               6385 INSURANCE                          29,500            29,500            29,500            29,500            29,500             43 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget      Aquatic Facility – Cascade Bay    Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Mark Vaughan, Campus Facilities Manager      LINE ITEM DETAIL (CONT’D)             Actual Actual Budget Budget Budget Acct 2015 2016 2017 2018 2019 6405 ELECTRICITY                        43,181$         37,989$         46,000$         46,000$         47,500$          6410 NATURAL GAS SERVICE                31,562            15,167            36,000            33,000            34,000             6424 POOL REPAIR/ LABOR 1,920              990                 6,000              15,000            5,000               6426 SMALL EQUIPMENT REPAIR LABOR ‐                  ‐                  ‐                  ‐                  ‐                   6427 BUILDING OPERATIONS REPAIR LABOR 248                 257                 ‐                  ‐                  ‐                   6475 MISCELLANEOUS                      ‐                  80                    100                 ‐                  ‐                   6476 CONFERENCES AND  SCHOOLS            194                 1,338              2,500              3,000              3,000               6477 LOCAL MEETING EXPENSES               ‐                  40                    100                 100                 100                  6479 DUES AND SUBSCRIPTIONS             179                 218                 300                 400                 400                  6480 LICENSES, PERMITS AND TAXES            1,509              1,668              2,000              2,600              2,600               6487 VISA/MC BANK CHARGES        16,203            27,337            16,000            27,000            29,600             6535 OTHER CONTRACTUAL SERVICES         7,418              10,286            8,000              12,000            12,000             6539 WASTE REMOVAL/SANITATION SERV      2,733              4,515              3,000              4,500              4,600               6563 LANDSCAPING 4,110              4,630              5,000              7,000              7,000               6569 MAINTENANCE CONTRACTS 306                 22,629            6,400              4,900              5,500               OTHER SERVICES AND CHARGES         148,382         166,001         179,000         204,400         200,200          MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE             122,310         123,673         95,000            99,600            100,000                  MERCHANDISE FOR RESALE 122,310         123,673         95,000            99,600            100,000          TOTAL  OPERATING 962,149         995,510         989,900         1,074,200      1,099,200       8.5%2.3% CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT 12,345            1,110               ‐                  4,000              4,000               6660 OFFICE FURNISHINGS & EQUIPMENT 2,015              2,006              4,000              2,000              2,000                      CAPITAL OUTLAY 14,360            3,116              4,000              6,000              6,000               RESERVE FOR RENEWAL & REPLACEMENT 89,400            89,900            92,000            89,900            89,900             89,400            89,900            92,000            89,900            89,900             TOTAL  CAPITAL OUTLAY 103,760         93,016            96,000            95,900            95,900             ‐0.1%0.0% TOTAL  AQUATIC FACILITY 1,065,909$    1,088,526$    1,085,900$    1,170,100$    1,195,100$     7.75% 2.14% 6488 DEPRECIATION & AMORTIZATION 308,960$       365,111$       351,500$       352,000$       352,000$        44 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget  Community Center     Responsible Managers:  Andrew Pimental, Director of Parks & Recreation   Marshall Grange, Community Center Manager    PURPOSE & DESCRIPTION    The purpose of the Community Center is to:   Provide a positive environment for residents and guests of all  ages to gather.   Encourage and help build a sense of community through a wide  range of recreational and social opportunities.   Promote health and wellness in the community.   Maintain a high level of service, accessibility and  professionalism to expand revenue options to ensure the  viability of this resource to the community.    The Community Center is responsible for the following functions:   Facilitate a wide variety of programs and classes for members and non‐members.   Market and operate a wide range of meeting spaces and rental opportunities for the community.   Capture a high level of revenues to best offset the operational costs of the building.   Protect the City's community investment by maintaining the integrity and value of the building and its  amenities.   Operate and maintain a quality fitness center and wellness programs.   Provide space, programming and opportunities for all ages.   Create a welcoming atmosphere and solicit input from users to best determine how to meet existing  needs and identify future growth opportunities.    PERFORMANCE INDICATORS                                2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target 54 39 55 55 55 321 345 325 330 330 1175 1,229 1,125 1,150 1,150 14,757 11,510 15,000 15,000 15,000 1,711 1,750 1,750 1,800 1,800 978 884 1,100 1,125 1,125 78 63 85 80 80 980 1,026 1,200 1,200 1,200 Personal  Training hours Weddings Average attendance in building per day Groups  in the Blast Birthday parties Meetings Open gym program participants (POG/ $3open/BB & VB open) Memberships  ‐ year  round 45 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget      Community Center  Responsible Managers:  Andrew Pimental,  Director of Parks & Recreation Marshall  Grange, Community Center Manager    HIGHLIGHTS & CHANGES    Overview:  The 2018 Community Center  operating expenditure budget is up $29,700 or  1.7% compared to 2017. The budget reflects  status quo operations at the Community  Center with increased expenses occurring in  personnel services.  Full‐time staffing levels for 2018 will remain the same as 2017.  The overall Community Center  budget for 2018 is $1,946,100 versus a 2017 budget of $1,885,800 resulting in a 3.2% increase.  The 2019  Community Center operating expenditure budget is up $79,800 or 4.6% over 2018. The budget reflects status quo  operations at the Community Center with increased expenses due to rising and routine increases in full‐time  personnel costs.  Staffing levels for 2019 will remain the same as 2018.  The overall Community Center budget for  2019 is $2,023,000 vs. 2018 budget of $1,946,100 resulting in a 4.0% increase.      Highlight/Change 1:  The total for personnel services in 2018 is increased as a result of the recent Springsted  compensation study.  As an offset, part‐time staff costs have been reduced slightly as a result of restructuring of  part‐time staff shifts and creating operational efficiencies.  Additional clerical support is proposed with the  transition of City Hall parks and recreation clerical staff in 2018 to operate in the former Kids Kare room in the  Eagan Community Center.    Financial Impact:  $27,400 increase in total personnel services   Service Level Impact:  Centralizing parks and recreation administrative services at the ECC will provide added  convenience and attract people to a premier facility.      Highlight/Change 2:  The ECC will reach its 15‐year milestone in 2018 and has plans to utilize renewal and  replacement funds to enhance the facility in order to maintain our reputation as a beautiful and good value multi‐ purpose facility that serves the public in a variety of ways.  Some of the plans include: new carpeting in The Oaks  banquet room and pre‐function area, new interior paint throughout the building, replacement and/or refurbishing  of woodwork, new banquet chairs, etc.  Financial Impact:  Funds will come from Renewal and Replacement funds that were set aside in advance for the  replacement of these items.  Service Level Impact:  The enhancements will maintain the quality and beauty of the facility that we are known  for.    Highlight/Change 3:  It should be pointed out that in 2017 the ECC successfully implemented new fitness center  membership plans and procedures to avoid an approximate cost of $40,000 per year that would have been  imposed to meet PCI credit card compliance standards that the previous procedures would have required.  Financial Impact:  None/cost avoidance  Service Level Impact:  None, the ECC has the ability to offer a variety of membership plans.              46 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Community Center  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Marshall Grange, Community Center Manager      POSITION INVENTORY         2018‐2019 WORK PLAN                      Personnel 2015 2016 2017 2018 2019 Hours 1 1 1 1 1 2,080     Manager  on Duty (MOD)2 0 0 0 0 ‐         1 1 1 1 1 2,080     Government Buildings Engineer 1 1 1 1 1 2,080     00 0 0 0 ‐         Fitness  Coordinator 0 0.75 1 1 1 2,080     0 2.35 2.35 2.35 2.35 4,888     Training/Office Support Specialist 0.75 0 0 0 0 ‐         1 1 1 1 1 2,080     3 3 3 3 3 6,240     Total 9.75 9.75 10.35 10.35 10.35 21,528  Lead  Custodian/Maintenance Custodial Rental  Coordinator Guest Services  Specialist Community Center Manager Fitness  & Operations  Supervisor 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Provide input and directions  pertaining to  policies, budget and general  operation of ECC Develop and manage capital  improvements  and long‐range planning Develop and manage policies & procedures  that best meet the needs  of the community Coordinate outdoor events  with  indoor activities Recruit, hire, train  and supervise temporary  and part‐time employees Provide work direction to ensure high level of customer service is maintained Manage the building infrastructure to ensure efficient, safe and clean environment Establish and manage fitness  programs, classes and memberships Coordinate the rentals of all available spaces within the building Manage staff scheduling and training to meet the demands  of th e building Respond to public comments or requests via  phone or in person Provide support to  the day‐to ‐day fitness  center Daily maintenance and cleaning of building  Provide support to  the day‐to‐day concessions  operation Register participants in recreation programs, memberships  or daily admissions Develop promotional  materials  for  specialized uses:  B last/Rentals/Fitness Activity Routine Set up and change room configurations  to accommodate multiple events 47 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Community Center  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Marshall Grange, Community Center Manager    REVENUE SUMMARY        EXPENDITURE SUMMARY              Actual Actual Budget Budget Budget Acct REVENUES 2015 2016 2017 2018 2019 4304 PERSONAL TRAINERS 47,981$          61,264$          50,000$          63,000$          65,000$           4305/4306 EQUIPMENT RENTAL 21,797            32,829            25,000            33,000            35,000             4310/4311 PARK PROGRAM REVENUE 22,791            12,276            23,000            15,000            16,000             4312/4313 CONCESSION SALES 72,653            71,423            72,000            72,000            75,000             4314/4315 MERCHANDISE SALES 1,728               2,777               2,500               2,000               2,000                4316/4317 GROUP SALES 51,102            54,385            50,000            55,000            57,000             4318 DAILY ADMISSIONS 91,257            99,445            92,000            104,000          107,000           4321 MEMBERSHIPS 651,493          709,266          685,000          735,000          750,000           4322/23 VENDING (VENDORS)2,591               1,088               800                  1,000               1,000                4324/25 ROOM RENTALS 329,620          305,039          330,000          330,000          345,000           4326/27 FACILITY RENTAL 2,754               2,220               1,500               2,000               2,000                4328 CONTRACT REVENUE 101,111          125,841          100,000          120,000          125,000           4621 ECVB RENT 15,214            15,200            15,000            15,000            15,000             4657 SALE OF CITY PROPERTY 6,066               6,950               ‐                   ‐                   ‐                    4840 INTERNAL REVENUE 64,369            58,149            63,000            50,000            50,000             OTHER REVENUE 40,184            31,905            ‐                   ‐                   ‐                            SUBTOTAL 1,522,711       1,590,057       1,509,800       1,597,000       1,645,000        OTHER FUNDING SOURCES TRANSFER IN‐ANTENNA LEASE REVENUE 284,710          356,071          376,000          349,100          378,000                   SUBTOTAL 284,710          356,071          376,000          349,100          378,000           TOTAL  REVENUES 1,807,421$    1,946,128$    1,885,800$    1,946,100$    2,023,000$     3.2%4.0% Proposed Proposed Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 1,147,290$  1,229,843$  1,265,200$  1,292,600$  1,357,200$  Parts  and Supplies 52,965          62,067          60,300          61,100          64,500          Services  and Other Charges 356,155        348,990        363,600        360,100        370,900        Merchandise for Resale 39,744          39,346          35,000          40,000          41,000          Capital  Outlay 183,663        532,035        161,700        192,300        189,400        Total 1,779,817$  2,212,281$  1,885,800$  1,946,100$  2,023,000$  Depreciation Expense 531,108$      546,453$      485,500$      535,000$      535,000$      Debt Service 1,049,603     1,043,938     1,066,800     1,056,300     1,041,100     48 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Community Center  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Marshall Grange, Community Center Manager    LINE ITEM DETAIL       Actual Actual Budget Budget Budget Acct PERSONAL  SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND  WAGES‐REGULAR         551,162$        596,989$        617,400$        665,400$        700,400$         6112 OVERTIME‐REGULAR                   113                  96                    ‐                   ‐                   ‐                    6130 SALARIES AND  WAGES‐TEMPORARY       335,936          347,875          345,000          340,000          350,000           6142 PERA‐COORDINATED                   63,859            67,088            60,800            64,200            67,200             6144 FICA                               64,558            67,835            73,600            76,900            80,400             6151 HEALTH INSURANCE 117,385          129,057          155,400          132,500          145,000           6152 LIFE INSURANCE 1,181               946                  ‐                   ‐                   ‐                    6154 DISABILITY ‐ LONG TERM 2,132               2,275               ‐                   ‐                   ‐                    6155 WORKERS COMPENSATION               10,964            17,682            13,000            13,600            14,200                     TOTAL PERSONAL SERVICES 1,147,290       1,229,843       1,265,200       1,292,600       1,357,200        PARTS & SUPPLIES 6210 OFFICE SUPPLIES                    1,655               1,614               1,600               1,800               1,900                6211 OFFICE PRINTED MATERIAL/FORMS      1,188               1,049               1,200               1,200               1,300                6212 OFFICE SMALL EQUIPMENT 80                    88                    500                  500                  600                   6220 OPERATING SUPPLIES‐GENERAL         5,804               11,783            8,000               9,000               9,500                6222 MEDICAL/RESCUE/SAFETY SUPPLIES     485                  709                  900                  900                  900                   6223 BUILDING/CLEANING SUPPLIES         23,061            28,042            23,000            25,000            26,000             6224 CLOTHING/PERSONAL EQUIPMENT        2,361               1,998               2,000               2,000               2,200                6227 RECREATION EQUIPMENT SUPPLIES 1,503               2,812               3,600               3,600               4,000                6230 REPAIR/MAINTENANCE SUPP‐GENL       4,591               2,679               4,000               3,000               3,000                6232 SMALL EQUIPMENT REPAIR PARTS 2,865               584                  3,000               2,500               3,000                6233 BUILDING REPAIR SUPPLIES           7,476               8,097               9,200               8,500               9,000                6240 SMALL TOOLS                     143                  276                  500                  500                  500                   6241 SHOP MATERIALS 226                  189                  600                  300                  300                   6244 CHEMICALS & CHEMICAL PRODUCTS      1,212               1,332               1,400               1,500               1,500                6257 SIGNS & STRIPING MATERIAL ‐                   500                  300                  300                  300                   6270 COMPUTER SOFTWARE 315                  315                  500                  500                  500                           TOTAL PARTS & SUPPLIES 52,965            62,067            60,300            61,100            64,500             SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES 90                    ‐                   1,000               500                  500                   6314 AUDITING 2,300               2,400               2,300               2,400               2,500                6315 FINANCIAL NON‐AUDIT 2,750               ‐                   ‐                   ‐                   ‐                    6346 POSTAGE                            922                  1,339               1,000               1,000               1,100                6347 TELEPHONE SERVICE & LINE CHG       3,707               2,912               4,100               3,500               3,600                6348 MATRIX SERVICE & REPAIR            ‐                   ‐                   ‐                   ‐                   ‐                    6353 PERSONAL AUTO/PARKING              287                  ‐                   300                  500                  500                   6355 CELLULAR TELEPHONE SERVICE         1,531               1,759               1,600               2,000               2,000                6357 GENERAL ADVERTISING                13,882            13,245            15,000            17,000            17,000             6370 GENERAL PRINTING AND BINDING       156                  ‐                   1,000               2,000               2,000                6385 INSURANCE                          28,300            28,300            28,300            28,300            28,300             6405 ELECTRICITY                        166,310          173,547          164,000          168,000          173,000           6410 NATURAL GAS SERVICE                46,977            39,671            51,000            45,000            46,500             49 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    Community Center  Responsible Manager:  Andrew Pimental, Director of Parks & Recreation   Marshall Grange, Community Center Manager    LINE ITEM DETAIL (CONT’D)                     Actual Actual Budget Budget Budget SERVICES & OTHER CHARGES 2015 2016 2017 2018 2019 6426 SMALL EQUIPMENT REPAIR‐LABOR 2,813$            128$                ‐$                 ‐                   ‐                    6475 MISCELLANEOUS                      138                  432                  300                  500                  500                   6476 CONFERENCES AND  SCHOOLS            3,627               3,222               3,000               3,500               4,000                6477 LOCAL MEETING EXPENSES             ‐                   ‐                   1,000               2,000               2,500                6479 DUES AND  SUBSCRIPTIONS             119                  419                  600                  600                  600                   6480 LICENSES, PERMITS AND TAXES        2,022               2,552               2,000               2,500               2,600                6482 AWARDS, JUDGEMENTS, AND LOSSES 92                    3,796                ‐                   ‐                   ‐                    6487 VISA BANK CHARGES 18,778            16,757            19,000            14,000            14,000             6535 OTHER CONTRACTUAL SERVICES         37,210            30,218            36,000            35,000            37,000             6539 WASTE REMOVAL/SANITATION SERV      7,769               7,087               8,500               7,500               7,700                6569 MAINTENANCE CONTRACTS 16,375            21,206            23,600            24,300            25,000             OTHER SERVICES AND CHARGES         356,155          348,990          363,600          360,100          370,900           MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE             39,744            39,346            35,000            40,000            41,000                     MERCHANDISE FOR RESALE 39,744            39,346            35,000            40,000            41,000             TOTAL  OPERATING 1,596,154       1,680,246       1,724,100       1,753,800       1,833,600        1.7% 4.6% CAPITAL OUTLAY 6630 OTHER IMPROVEMENTS 3,331               5,150               ‐                   ‐                   ‐                    6640 MACHINERY/EQUIPMENT 5,732               74,340            1,800               6,300               5,400                6650 FURNITURE & FIXTURES 6,911               35                    2,000               ‐                   ‐                    6660 OFFICE FURNISHINGS & EQUIPMENT 3,241               2,484               5,900               6,000               4,000                6670 OTHER EQUIPMENT 6,448               14,606            5,000               5,000               5,000                6805 TRANSFER OUT ‐                   213,620          ‐                   ‐                   ‐                           CAPITAL OUTLAY 25,663            310,235          14,700            17,300            14,400             RESERVE FOR RENEWAL & REPLACEMENT 158,000          221,800          147,000          175,000          175,000           TOTAL  CAPITAL 183,663          532,035          161,700          192,300          189,400           18.9%‐1.5% TOTAL  COMMUNITY CENTER 1,779,817$    2,212,281$    1,885,800$    1,946,100$    2,023,000$     3.2%4.0% DEBT SERVICE 6490 PRINCIPAL 855,000          875,000          900,000          960,000          980,000           6491 INTEREST 194,153          168,488          166,300          95,800            60,600             6492 PAYING AGENT/BOND DESTRUCTION 450                  450                  500                  500                  500                          TOTAL DEBT SERVICE 1,049,603       1,043,938       1,066,800       1,056,300       1,041,100        6488 DEPRECIATION & AMORTIZATION 531,108$        546,453$        485,500$        535,000$        535,000$         50 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    AccessEagan/Fiber Infrastructure Fund (225)    Responsible Managers: Tom Garrison, Director of Communications;    Dianne Miller, Assistant City Administrator   Dan Cook, IT Manager    PURPOSE & DESCRIPTION    The purpose of the AccessEagan – (Fiber Infrastructure) operation is  to:   Respond to the City Council’s goal of implementing leading  technologies to support the evolving “infostructure” needs of  Eagan’s business community.   Support current and future needs of large and small Eagan businesses with a wide range of bandwidth  options for business, commercial and institutional use through a high performance carrier class network.   Offer wholesale lit fiber open to any provider wishing to lease AccessEagan capacity to reach and serve  Eagan businesses. (The City does not offer retail services.)   Ensure access in crowded rights of way to multiple carriers providing competitive services, and create  additional security and redundancy to Eagan’s fiber infrastructure.   The additional purpose of the Fiber Infrastructure fund is to keep track of all fiber and broadband  planning investments in one place.     The AccessEagan operation is responsible for the following functions:   Provide secure network bandwidth to carriers and providers for resale   Ensure and monitor on‐going network operations   Continued analysis of existing operation for growth and other service opportunities   Provide all network equipment end‐to‐end, including customer premises equipment    PERFORMANCE INDICATORS        2015 2016 2017 2018 2019 Description Actual Actual Actual Target Target Customer Counts 2 5 10 17 23 Revenues  Generated 13,805 50,378 101,700 141,400 138,100 Miles  of Fiber installed 1616404040 51 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    AccessEagan/Fiber Infrastructure  Fund (225)    Responsible Managers:  Tom Garrison, Director of  Communications;  Dianne Miller, Assistant City Administrator;   Dan Cook, IT Manager      HIGHLIGHTS & CHANGES    Overview:  The 2018 AccessEagan budget is proposed to decrease by $52,500 (‐11.3%) from 2017, primarily due to  a reduction in costs incurred in 2017 for the expansion of the fiber network to northeast Eagan.  While the vast  majority of the expenses in the AccessEagan/Fiber Infrastructure Fund are for the open access network, the fund  also accounts for inter‐agency fiber lease arrangements and revenues. The City also receives revenue from  separate conduit‐only lease arrangements.  The 2019 AccessEagan budget decreases by $37,500 (‐8.1%) from  2018, primarily due to the reduction of cost in Professional Services (6310) category.      Highlight/Change 1 Last year’s budget included a $100,000 allocation for expanding the AccessEagan fiber network  into northeast Eagan.  Construction will begin in the fall and should be completed by the end of 2017.  There is no  additional network expansion planned for 2018.  Financial Impact: $100,000 decrease (6756)  Service Level Impact:  No service level impact    Highlight/Change 2:  Fiber Maintenance contract was renegotiated in 2017 and the City was able to reduce cost of  locating and maintaining its fiber network by combining some of the City’s institutional network (INET) and  AccessEagan commercial network (CNET) into one contract.  Financial Impact: $13,500 decrease (6569)  Service Level Impact:  No service level impact    Highlight/Change 3:  Staff is proposing to increase drop cost expenses as a method to increase customer base.   This strategy has shown to be a valuable tool in getting customers to sign on with service providers.  This expense  is fully recovered throughout the term of the contract with the service provider.   Financial Impact: $25,000 increase (6756)  Service Level Impact:  The incentive provides a significant advantage to bring customers onto the network.    Highlight/Change 4:  The 2018 and 2019 budgets include funding to secure outside sales and marketing support to  promote new customers coming onto AccessEagan. The City has the technical skills to run the network, and to  date, staff has continued to grow customers coming onto the network using internal sales and marketing  strategies. However the network has reached a juncture where a focused sales and marketing strategy is needed  to end users to encourage them to utilize the AccessEagan network.     Financial Impact: Increase $50,000 (6310)  Service Level Impact:  It is anticipated that the investment in outside assistance with sales and marketing will  further grow the number of AccessEagan customers.      Continued on next page        52 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    AccessEagan/Fiber Infrastructure Fund (225)    Responsible Managers: Tom Garrison, Director of Communications;   Dianne Miller, Assistant City Administrator;   Dan Cook, IT Manager    HIGHLIGHTS & CHANGES (CONT’D)    Highlight/Change 5:  The revenues calculated in the 2018 budget were derived from the pro forma staff created in  2016 projecting future AccessEagan revenues.  In this pro forma, it was anticipated revenues will come in at  $106,943.  It is anticipated that AccessEagan’s 2018 revenues will be closer to $141,400 due to an anticipated dark  fiber lease with the County that is in the final stages of negotiations.    Financial Impact:  $46,300 Increase from 2017 budget  Service Level Impact:  No service level impact        POSITION INVENTORY            2018‐2019 WORK PLAN                              Personnel 2015 2016 2017 2018 2019 Hours 011112,080        Total 0.001.001.001.001.00 2,080        IT Network Security Supervisor Activity 1 2 3 4 5 6 7 8 9 10 Coordinate support issues with  all vendors Maintain all equipment documentation for new installations of customers on the network Coordinate with  internal departments  to make operations  flow smoothly Establish AccessEagan Goals, Objectives, Standards  and Controls Routine Develop AccessEagan  policies and procedures  for Operational  Guide Build Relationships with  Service Providers, Carriers, Data  Centers  and Eagan  Businesses Establish various  Agreements  with  Service Providers  to  make operations  flow seemlessly Hire appropriate staff to  be determined by network growth Document all variances  from original build out to  ensure reliability and scalability Update City Council  on AccessEagan  progress  annually 53 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    AccessEagan/Fiber Infrastructure Fund (225)    Responsible Managers: Tom Garrison, Director of Communications;   Dianne Miller, Assistant City Administrator;   Dan Cook, IT Manager    REVENUE SUMMARY      EXPENDITURE SUMMARY                                Actual* Actual* Budget* Budget Budget Acct REVENUES 2015 2016 2017 2018 2019 4140 STATE GRANTS ‐$                 ‐$                 ‐$                 ‐$                 ‐$                  4615 CHANGE IN FAIR VALUE ‐                   ‐                   ‐                   ‐                   ‐                    4622 EQUIPMENT RENT 14,522            17,049            24,400            77,600            103,300           4686 FIBER LEASE ‐ SERVICE PROVIDERS 17,050            33,585            66,700            52,800            18,400             4687 FIBER LEASE ‐ OTHER 1,234               ‐                   9,000               11,000            16,400             4691 OTHER REVENUE 40                    457                  ‐                   ‐                   ‐                    4822 OTHER REFUNDS AND REIMBURSEMENTS 17,532            60,188            ‐                   ‐                   ‐                    4980 TRANSFERS IN 350,000          250,000          ‐                   ‐                   ‐                    TOTAL  ACCESSEAGAN/FIBER REVENUE 400,378$        361,279$        100,100$        141,400$        138,100$         * Actual  and Budgeted Revenue was  reclassified for budget presentation to best represent service activity to the AccessEagan  customers. Proposed Proposed Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 115,165$      118,985$      123,300$      128,600$      144,700$       Parts  and Supplies 750                1,063             2,900             2,900             2,900              Services  and Other Charges 45,636          54,758          139,900        155,200        106,700         Capital  Outlay 8,492             1,114             9,200             11,100          6,000              Construction Projects 1,990             3,349             190,000        115,000        115,000         Total 172,033$      179,269$      465,300$      412,800$      375,300$       Depreciation Expense 124,790$      140,136$      125,000$      125,000$      125,000$       54 October 10, 2017 Special City Council Meeting 2018‐2019 Proposed Budget Operating Budget    AccessEagan/Fiber Infrastructure Fund (225)    Responsible Managers:  Tom Garrison, Director of Communications;  Dianne Miller, Assistant City Administrator;  Dan Cook, IT Manager    LINE ITEM DETAIL    Actual Actual Budget Budget Budget Acct PERSONAL SERVICES 2015 2016 2017 2018 2019 6110 SALARIES AND WAGES‐REGULAR         92,000$          95,146$          96,100$          102,200$        108,400$         6142 PERA‐COORDINATED                   6,569               6,383               7,500               7,900               8,400                6144 FICA                               6,658               6,646               7,400               7,800               8,300                6151 HEALTH INSURANCE 9,056               10,012            11,700            10,100            11,000             6152 LIFE 122                  95                    ‐                   ‐                   ‐                    6154 DISABILITY ‐ LONG TERM 244                  237                  ‐                   ‐                   ‐                    6155 WORKERS COMPENSATION               516                  466                  600                  600                  700                           TO TAL PERSONAL SERVICES 115,165          118,985          123,300          128,600          144,700           PARTS & SUPPLIES 6210 OFFICE SUPPLIES ‐                    ‐                   ‐                   ‐                   ‐                    6220 OPERATING SUPPLIES ‐ GENERAL 750                  1,063               2,900               2,900               2,900                         PARTS & SUPPLIES            750                  1,063               2,900               2,900               2,900                SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES ‐ GENERAL 9,159               3,887               32,100            64,200            14,200             6311 LEGAL 2,370               ‐                   4,500               4,500               4,500                6312 ENGINEERING ‐                   ‐                   10,000            10,000            10,000             6314 AUDITING 100                  100                  500                  500                  500                   6346 POSTAGE ‐                   846                  800                  800                  800                   6350 LOGIS IT SERVICES 11,256            10,484            11,500            7,400               7,400                6355 CELLULAR TELEPHONE SERVICE ‐                   607                  800                  800                  800                   6370 GENERAL PRINING AND  BINDING 138                  ‐                   ‐                   ‐                   ‐                    6456 BUILDING RENTAL ‐                   8,500               12,000            12,400            12,700             6476 CONFERENCES/MEETINGS/TRAINING ‐                   1,418               3,700               4,100               4,100                6569 OTHER CONTRACTUAL SERVICES 22,613            28,916            64,000            50,500            51,700                     SERVICES & OTHER CHARGES 45,636            54,758            139,900          155,200          106,700           TOTAL  OPERATING 161,551          174,806          266,100          286,700          254,300           4.4%‐7.0% CAPITAL OUTLAY 6660 OFFICE FURNISHINGS & EQUIPMENT 3,219               224                   ‐                   1,900                ‐                    6670 OTHER EQUIPMENT 5,273               890                  9,200               9,200               6,000                         CAPITAL OUTLAY 8,492               1,114               9,200               11,100            6,000                CONSTRUCTION  PROJECTS 6700 PROJECT ‐ CONTRACT 1,990               3,349                ‐                   ‐                   ‐                    6756 BUILDING & STRUCTURES ‐                   ‐                   190,000          115,000          115,000           CONTRUCTION PROJECTS 1,990               3,349               190,000          115,000          115,000           TOTAL  CAPITAL 10,482 4,463 199,200 126,100 121,000 ‐15.7%‐1.1% TOTAL  FIBER INFRASTRUCTURE 172,033$        179,269$        465,300$        412,800$        375,300$         ‐11.3%‐8.1% Non ‐personnel  increase:‐16.9%‐18.9% 6488 DEPRECIATION & AMORTIZATION 124,790$        140,136$        125,000$        125,000$        125,000$         55 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget    E‐TV (197)    Responsible Manager:  Tom Garrison, Director of Communications     PURPOSE & DESCRIPTION    Eagan Television (E‐TV) creates public, educational, and government cable TV  programming through a partnership of volunteers and professional staff.  E‐TV also  provides television production equipment facilities, and channel time to televise locally‐ produced programming.  It is cable programming by the community, for the community.            PERFORMANCE INDICATORS        2015 2016 2017 2018 2019 Description Actual Actual Estimate Target Target Monthly Staff Program Production 20 21 24 30 30 Monthly Access  Show Production    24 20 30 30 30 New Volunteers 180 188 200 200 200 Outside Revenue $47,613 $21,102 $40,000 $40,000 $40,000 Opportunities  For Youth 12‐18 150 144 150 180 180 Monthly Multipurpose Short Video Production NA NA NA 4 4 1 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget    E‐TV (197)  Responsible Manager:  Tom Garrison, Director of  Communications    HIGHLIGHTS & CHANGES    Overview:   The 2018 Eagan Television (E‐TV) budget is  proposed to increase $569,500 or 94.2% overall.  The  increase is mostly due to planned significant capital  purchases.  The operational portion of the budget is set to  increase slightly in 2018, by 0.5%, or about $2,700.  The 2019  total budget is proposed to decrease $291,000 or 24.8% from the 2018 while the operational budget is programmed to  increase at modest 4.7%.    The E‐TV budget is funded by non‐taxpayer dollars.  The sources of funding are franchise fees and a small fee on local  subscriber bills which supports capital equipment for Public, Educational and Governmental (PEG) public access facilities.    Highlight/Change 1:  The proposed legal counsel budget will decrease over the next two years, assuming successful  conclusion of negotiations by the end of the 2017. Once the agreement with Comcast is concluded there will be legal  expense to make sure both franchises materially conform and accurate reporting is forthcoming. In ’19 it is recommended a  financial audit be conducted to ensure early in the term that the City is being paid appropriately under the new agreements   Financial Impact:  Decrease of $26,000 (6311)  Service Level Impact:  No service impact is expected at this time, assuming agreement in 2017. A formal legal process, if the  parties could not agree, would obviously be more expensive    Highlight/Change 2:  For the first time, we anticipate access to electronic program guides, so E‐TV viewers can find E‐TV  shows and public access programs by name to watch or record. When the second of two cable franchises are completed,  there will be an ongoing cost to provide the program content information in a manner that can be used by the cable  companies.    Financial Impact:  This would be an increase in Professional Services by $700 per channels per year or $2,800 for the 4  channels we would provide program descriptions for.  Service Level Impact:  Improved. This will allow us to have an electronic program guide for all our main channels.  It would  allow of programming information and descriptions to be available in the exact same way they are for the other channels  on the cable system. Responsibilities will be carried out by same person who currently schedules the programs for air.     Highlight/Change 3:  Perhaps the most significant change is within the proposed CIP paid for by PEG funds. In our  partnership with Burnsville on the shared mobile production studio, it is due for full replacement and each city has set aside  $400,000 each for this expensive endeavor. In addition, several other capital items, including the last remaining piece to  make HD streaming from the Eagan room possible, and replace studio set equipment are included.  Financial Impact: Budget set aside within PEG fund balance and some retained franchise fees. Altogether, more than  $500,000  Service Level Impact:   Improved ability for live and mobile production, HD programming and in‐studio experience.  Significant staff time will be dedicated by studio supervisor for acquisition of mobile studio in cooperation with Burnsville.                   2 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget    E‐TV (197)  Responsible Manager:  Tom Garrison, Director of Communications    Highlights (cont’d)      Highlight/Change 4:  Our 2018 CIP requests are for replacing equipment that was either brought over from the old  Burnsville/Eagan operation or purchased at start of Eagan Television or soon afterwards.  The bulk of the requests are for  the replacement of the Shared Production Truck.  The truck is now 12 years old.  The requested replacement truck would  be HD and capable of doing live productions much more easily.   The remainder of the CIP purchases are for replacement of  our video streamer, studio sets and Eagan Room character generator. We have also requested a lens package.  All of these  requests play an important part in our conversion to High Definition.    Financial Impact: The Capital purchases include Mobile Van which will be split with Burnsville – Eagan expense = $450,000;  Studio Set upgrade = $32,900; Live Location upgrade = $29,200; Eagan Room Character Generator = $19,195; and EF Mount  Prim Lens Package $28,500.  Aside from the initial CIP purchase price for the requests, the only ongoing expense would be  the data charge for the streamer modems.  This expense is covered in the operational budget.     Service Level Impact:   Improved. All of these requests will complete our conversion to High Definition.  It will also simplify,  improve and increase several fold, the reliability of our live production capabilities.  In partnering again with Burnsville for  the truck, we will also have all the benefits, with only half of the expense.        Highlight/Change 5:  Our 2019 CIP requests are for replacement of our studio cameras that were purchased at the launch  of Eagan television in 2008.  We have the same life expectancy for the replacement cameras of 8 to 10 years.  The current  studio cameras would be converted for use with our portable production unit.  Our other request is to replace 2 of the  computers in our edit suites as per IT policy.  The respective computers will be 4 and 5 years old in 2019.  Financial Impact: 3 Studio camera packages = $182,000; Edit computers replace $59,400.    Service Level Impact:   Improved.  In the studio environment, the newer cameras will have an improved picture and also be  more reliable.  We will also be able to improve our remote production capabilities by moving our current cameras to the  less demanding portable package.  This is also true for the edit suites as the faster computers will speed up the editing and  post production process by significantly reducing the render times of the more demanding HD workflow.       EXPENDITURE SUMMARY                            Actual Actual Budget Budget Budget Expenditure 2015 2016 2017 2018 2019 Personal  Services 368,779 340,916 408,400 418,400 436,200 Parts  and Supplies 23,418 31,050 33,900 39,600 40,200 Services  and Other Charges 108,723 120,069 137,400 124,400 133,500 Capital  Outlay 100,544 154,706 24,900 591,700 273,200 Total 601,464 646,741 604,600 1,174,100 883,100 3 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget        E‐TV (197)  Responsible Manager:  Tom Garrison, Director of Communications       POSITION INVENTORY            WORK PLAN 2018‐2019               Personnel 2015 2016 2017 2018 2019 Hours Studio Supervisor 1 1 1 1 1 2,080 Client Services  Coordinator 1 1 1 1 1 2,080 Govt Programming Coordinator 1 1 1 0 0 0 Production/Programming Assistant 0 0 0 1 1 2,080 Videographer/Editor 1 1 1 1 1 2,080 Total 4 4 4 4 4 8,320 Routine 1 Supervision of PEG channels  for Eagan 2Provide and maintain public access  facilities 3Plan & implement HD channel(s) conversion 4Conclude franchise agreement(s) 5Provide coverage of community events  & facilitate volunteer partnerships and co‐productions 6Provide coverage of all Eagan government meetings 7Provide video production services to City of Eagan  departments 8Provide video production services to revenue generating clients 9 Assist Comcast customers with complaints 10 Provide training for PA studio and equipment use 11 Provide video production services to Thomson  Reuters  in exchange for  rent 12 Facilitate, organize and execute the playback of all PA shows, increasing interactivity Note: City may  be managing more than one cable franchise Activity 4 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget    E‐TV (197)    Responsible Manager:  Tom Garrison, Director of Communications      REVENUE SUMMARY                   Actual Actual Budget Budget Budget Revenue 2015 2016 2017 2018 2019 4689 PEG fees  (total)373,058         376,129         375,000         380,000             380,000            4690 City contribution ‐ from Cable Franchise Fees  fund 371,528         345,311         417,200         429,700             447,500            4695 E‐TV dubbing 1,117              909                 3,000              3,000                  3,000                 4699 Class  fees 9,830              7,115              15,000            15,000                15,000              4696 Dub/Rental/Paid production ‐                  ‐                  ‐                  ‐                      ‐                     4697 E‐TV paid production 4,375              7,835              22,000            22,000                22,000              XXXX Other Revenue 40,235            29,570            ‐                  ‐                      ‐                          Total  Operating Revenues 800,143         766,869         832,200         849,700             867,500            2.1%2.1% 5 October 10, 2017 Special City Council Meeting    2018‐2019 Proposed Budgets Operating Budget    E‐TV (197)  Responsible Manager:  Tom Garrison, Director of Communications    LINE ITEM DETAIL    2015 2016 2017 2018 2019 Actual Actual Budget Budget Budget 6110 SALARIES AND WAGES‐REGULAR         261,859         229,814         250,500         270,800             282,000            6112 OVERTIME ‐ REGULAR 3,018              2,794              9,000              9,000                  9,000                 6130 SALARIES AND WAGES‐TEMPORARY 16,514            26,071            40,000            40,000                40,000              6142 PERA‐COORDINATED                   21,291            18,553            22,500            24,000                24,800              6144 FICA                               21,236            18,408            22,900            24,500                25,300              6151 HEALTH INSURANCE/VEBA 42,409            44,405            62,200            48,700                53,600              6155 WORKERS COMPENSATION               2,452              871                 1,300              1,400                  1,500                     PERSONAL SERVICES                  368,779         340,916         408,400         418,400             436,200            6210 OFFICE SUPPLIES 460                 613                 900                 1,000                  1,000                 6212 OFFICE SMALL EQUIPMENT 140                 153                 300                 400                     400                    6215 REFERENCE MATERIALS 27                    ‐                  300                 300                     300                    6220 OPERATING SUPPLIES ‐ GENERAL 7,110              10,920            9,700              10,200                10,400              6224 CLOTHING/PERSONAL EQUIPMENT ‐                  ‐                  1,500              1,500                  1,500                 6231 MOBILE EQUIPMENT REPAIR ‐ PARTS 1,733              2,331              2,000              4,400                  4,400                 6232 SMALL EQUIPMENT REPAIR ‐ PARTS 1,738              2,453              2,000              4,400                  4,400                 6235 FUEL, LUBRICANTS, ADDITIVES 1,103              613                 2,000              2,000                  2,000                 6270 COMPUTER SOFTWARE                  11,107            13,967            15,200            15,400                15,800                    PARTS & SUPPLIES 23,418            31,050            33,900            39,600                40,200              6310 PROFESSIONAL SERVICES‐GENERAL      1,240              5,307              2,500              9,500                  22,100              6311 LEGAL  24,149            8,779              60,000            34,000                30,000              6313 PLANNING 22,086            44,607            ‐                  ‐                      ‐                     6314 AUDITING 100                 100                 ‐                  ‐                      ‐                     6346 POSTAGE                            ‐                  ‐                  500                 500                     500                    6347 TELEPHONE SERVICE & LINE CHARGES ‐                  ‐                  100                 ‐                      ‐                     6353 PERSONAL AUTO/PARKING 13                    23                    100                 100                     100                    6355 CELLULAR TELEPHONE SERVICE 3,641              4,555              4,200              4,200                  4,200                 6357 GENERAL ADVERTISING 100                 295                 1,700              2,600                  2,600                 6370 GENERAL PRINTING AND BINDING       1,950              ‐                  800                 800                     800                    6385 INSURANCE 7,400              7,400              7,400              7,400                  7,400                 6405 ELECTRICITY 12,000            12,000            12,000            12,000                12,000              6425 MOBILE EQUIPMENT REPAIR ‐ LABOR 1,220              ‐                  2,000              2,000                  2,000                 6426 SMALL EQUIPMENT REPAIR ‐ LABOR 3,071              3,412              4,000              3,000                  3,000                 6457 MACHINERY & EQUIPMENT RENTAL ‐                  60                    200                 300                     300                    6475 MISCELLANEOUS 3,941              4,060              5,000              7,700                  7,700                 6476 CONFERENCES AND SCHOOLS 2,543              4,250              7,000              9,500                  9,500                 6477 LOCAL MEETING EXPENSES 206                 124                 200                 200                     200                    6479 DUES  AND SUBSCRIPTIONS 3,190              3,733              4,100              5,000                  5,000                 6480 LICENSES, PERMITS AND TAXES ‐                  16                    ‐                  ‐                      ‐                     6535 OTHER CONTRACTUAL SERVICES 82                    ‐                  ‐                  ‐                      ‐                     6569 MAINTENANCE CONTRACTS 21,791            21,348            25,600            25,600                26,100                  OTHER SERVICES AND CHARGES         108,723         120,069         137,400         124,400             133,500            TOTAL  OPERATING 500,920         492,035         579,700         582,400             609,900            0.5%4.7% 6640 MACHINERY/EQUIPMENT 97,825            29,318            17,300            109,800             241,400            6660 OFFICE FURNISHINGS/EQUIPMENT       1,301              2,312              1,600              2,400                  2,300                 6670 OTHER EQUIPMENT ‐                  121,298          ‐                  23,000                23,000              6680 MOBILE EQUIPMENT 1,418              1,778              6,000              456,500             6,500                 TOTAL  CAPITAL 100,544         154,706         24,900            591,700             273,200            23                        (1)                           TOTAL  E‐TV 601,464         646,741         604,600         1,174,100          883,100            94.2%‐24.8% 6 October 10, 2017 Special City Council Meeting Agenda Information Memo October 10, 2017 Eagan Special City Council Workshop VI. REVIEW OF LICENSING AND REGULATING ALCOHOL AT VIKING LAKES Directions For Consideration: 1. To direct preparation of an ordinance amendment to allow issuance of on-sale liquor licenses to the owners of Lots 1 and 2, Block 1, Viking Lakes and concessionaires or vendors under contract with the owner. 2. If direction is given to prepare an ordinance amendment, provide direction on the public policy questions raised below. Facts:  The 2017 Special Legislative Session included a law that allows Eagan to issue on-sale alcohol licenses to the owner of Lots 1 and 2, Block 1, Viking Lakes, or to any concessionaire or other third-party vendor under contract with the owner.  The next step in the process for allowing alcohol at the Viking Lakes complex is for the City to enact an ordinance amendment allowing issuance of on-sale liquor licenses and setting appropriate regulations.  The attached memo summarizes the research conducted regarding on-sale alcohol service at Viking Lakes and outlines policy considerations. Staff have met with representatives from the Vikings to understand the organization’s plans for alcohol sales and service on their site and to provide education regarding alcohol regulations.  In addition to the ordinance amendment, a Planned Development Amendment is required in order to sell or serve alcohol on Lots 1 and 2, Block 1 and to conduct tailgating or other related activities at Viking Lakes. Per the advice of the City Attorney, security plans for large events with alcohol and standards for tailgating and related activities are best regulated by a PD Amendment. Council discussion of those issues would occur during consideration of a PD Amendment.  The attached memo outlines the following policy considerations and provides background information for each one. 1. Should City Code be amended to allow the issuance of annual on-sale liquor licenses to the owner, concessionaire or vendor for Lots 1 and 2, Block 1, Viking Lakes? 2. Should City Code be amended to allow the issuance of short-term on-sale license licenses to vendors for Lots 1 and 2, Block 1 Viking Lakes? a. How many days should the license term be? b. Should short-term permits be approved by Council or administratively? 3. Should City Code include limitations for the types of events at which alcohol service is allowed? 4. Should City Code limit the areas in which alcohol can be served/consumed on Lots 1 and 2, Block 1, Viking Lakes? 5. Should City Code include a City permit requirement for alcohol caterers who are selling/serving food and alcohol at a large-scale event? 6. What fees are appropriate for the newly created licenses? 7. Does the Council wish to enact any additional regulations regarding alcohol service at Lots 1 and 2, Block 1, Viking Lakes? Attachments: (2) VI-1 Background Memo VI-2 Map of Lots 1 & 2, Block 1, Viking Lakes Memo To: Dianne Miller, Assistant City Administrator From: Christina M. Scipioni, City Clerk/Administrative Coordinator Date: October 6, 2017 Subject: Alcohol license regulations at Viking Lakes Background The 2017 Special Legislative Session included a law that allows Eagan to issue on-sale alcohol licenses to the owner of Lots 1 and 2, Block 1, Viking Lakes, or to any concessionaire or other third-party vendor under contract with the owner. The next step in the process for allowing alcohol at the Viking Lakes complex is for the City to enact an ordinance amendment allowing issuance of on-sale licenses and setting appropriate regulations. The on-sale alcohol licenses would allow the sale of alcohol on Lot 1 and Lot 2 for events taking place in conjunction with events on Lot 1. Lot 1 includes the Indoor Practice Facility, outdoor practice fields, the stadium, Vikings Headquarters and the northern lake. Lot 2 includes the plaza areas, parking lots, stadium drop- off area, the medical office building (MOB), the sports medicine center (SMC) and the south lake. Plans for Alcohol Service Events with alcohol at the Vikings complex are planned to run the gamut from small, corporate and community events to large-scale concerts, sporting events and training camp. For all of these events, the alcohol licensing falls into one of four categories: 1. Annual On-Sale Licenses: It is anticipated a few entities will require an on-sale liquor license with a yearly duration (similar to other alcohol licenses issued by the City). These entities would include the Vikings organization and any concessionaires and vendors under contract to serve the stadium, cafeteria and other areas of the complex. 2. Short-Term On-Sale Licenses: Given the variety of events anticipated to be held at the site, there will likely be alcohol vendors who have a need to apply for a short-term license to sell alcohol. An example of this would be an alcohol vendor sponsoring an event who wants to sell their product at the event. 3. Caterer’s Permits: State Statute allows restaurants with an on-sale liquor license to apply for a caterer’s permit. The caterer’s permit allows the license holder to sell or serve alcohol anywhere in the state as long as it is accompanied by the sale or service of Page 2 prepared food. The caterer is required to notify the police chief of a municipality when service is planned in their community. No additional review or licensing of caterer’s permits currently exists in City Code; however, the permit holder is subject to all of the same regulations as on-sale liquor license holders. 4. Temporary On-Sale Liquor Licenses: State Statute allows municipalities to issue temporary on-sale liquor licenses to non-profit organizations. This type of license might be used by non-profit groups utilizing the Vikings complex for an event. Under State Statute, the City would be limited to issuing one temporary license every 30 days for a total of not more than 12 days per year. Regulations for temporary on-sale liquor licenses already exist in City Code. Temporary on-sale liquor licenses are subject to review by the Police Department and approval by the City Council. Planned Development Regulations In addition to the regulations set forth in City Code, Viking Lakes is subject to a Planned Development Agreement, which includes other regulations for activities at the site. The Planned Development Agreement requires an Event Travel Demand Management Plan (ETDMP), which is in the process of being drafted. The ETDMP will identify management strategies for activities and events of various sizes, including traffic operations/control, parking and circulation. The current Planned Development Agreement does not allow alcohol sales or service or other associated events, such as tailgating. A Planned Development Amendment will be needed to allow for on-sale liquor on Lots 1 and 2, Block 1 and associated events. Because of the variety of alcohol vendors that might be on-site for any given event, the City Attorney’s Office has advised that if Council wishes to require security plans for large-scale events, that requirement should be considered and included as part of a review of an application for a Planned Development Amendment. The same is true for any regulations pertaining to tailgating or other similar activities. Liquor License Regulation Policy Considerations If City Code is amended to allow issuance of on-sale liquor licenses for the Vikings complex, the license holders will be subject to the alcohol regulations in State Statute and City Code. Given this site will operate differently from other regulated uses (i.e. restaurants, hotels, taprooms), the following policy considerations exist: • Duration of licenses: Discussions with the Vikings about operation of the site have identified a need for creation of two types of on-sale licenses: annual and short-term. o The annual licenses could be administered similar to other annual on-sale liquor licenses, which require a background investigation upon initial application and require annual Council approval. (Public Policy Question No. 1) o The short-term licenses could be administered similar to the temporary on-sale liquor licenses, which include Police Department review, but not background investigations. These licenses could be approved by Council or administratively. (Public Policy Question No. 2) Page 3 • Types of events where alcohol is permitted: The Council could choose to limit the types of events where alcohol can be sold and/or consumed. State Statute does not prohibit the Minnesota State High School League, NCAA or MIAC from serving or selling alcohol at events at private facilities. The MSHSL has rules that prohibit alcohol at League-sanctioned events. In addition, the NCAA and MIAC typically prohibit alcohol sales to the general public, but not necessarily to all event attendees. (Public Policy Question No. 3) • Area where alcohol sales are allowed: The special legislation allows the City to issue on-sale liquor licenses for sale and consumption of alcohol anywhere within Lot 1 and on Lot 2, as long as the event on Lot 2 is in connection with an event on Lot 1. If the language from the legislation is adopted into City Code, the license holder could apply for a license that includes the entire site, including the parking lots. If the Council wishes to prohibit alcohol sales/consumption within certain areas of the site, those prohibitions can be included in the ordinance amendment. (Public Policy Question No. 4) • Additional regulations for caterer’s permit holders: Under current State Statute and City Code, a restaurant serving or selling alcohol at the Vikings complex is required to notify the City in advance of the event, but is not subject to any review or permitting by the City. Historically, caterer’s permits have been used throughout the City without incident. However, if caterer’s permits are used at the high-attendance events anticipated at the Vikings complex, the City may want to require an additional permit for those events to allow for Police Department review. Such review provides authority to the Police Department to require measure be taken to ensure public safety is considered before the permit will be issued. (Public Policy Question No. 5) • License Fees: When enacting new licenses, new fees for those licenses must also be included in the ordinance amendment. Consistent with other metro communities, the City could apply its on-sale liquor license fee schedule to the newly created annual license, short-term license and caterer’s permit. The current fee schedule is: On Sale Annual Licenses: Alcohol Sales less than $275,000: $5,500 Alcohol Sales between $275,000-$550,000: $6,500 Alcohol Sales greater than $550,000: $7,500 Short-Term Licenses: $150 Caterer’s Permit: $150 (Public Policy Question No. 6) • Additional regulations desired by Council: State Statute allows cities to be more restrictive with their alcohol licensing regulations. In addition to the policy considerations above, the Council has latitude under State Statute to enact other regulations as it deems necessary. (Public Policy Question No. 7) Page 4 Public Policy Questions 1. Should City Code be amended to allow the issuance of annual on-sale liquor licenses to the owner, concessionaire or vendor for Lots 1 and 2, Block 1 Viking Lakes? 2. Should City Code be amended to allow the issuance of short-term on-sale license licenses to vendors for Lots 1 and 2, Block 1 Viking Lakes? a. How many days should the license term be? b. Should short-term permits be approved by Council or administratively? 3. Should City Code include limitations for the types of events at which alcohol service is allowed? 4. Should City Code limit the areas in which alcohol can be served/consumed on Lots 1 and 2, Block 1, Viking Lakes? 5. Should City Code include a City permit requirement for alcohol caterers who are selling/serving food and alcohol at a large-scale event? 6. What fees are appropriate for the newly created licenses? 7. Does the Council wish to enact any additional regulations regarding alcohol service at Lots 1 and 2, Block 1 Viking Lakes? Lot 1 Lot 2