08/15/2018 - City Council SpecialSPECIAL CITY COUNCIL MEETING
WEDNESDAY, AUGUST 15, 2018
5:30 P.M.
EAGAN ROOM
EAGAN MUNICIPAL CENTER
AGENDA
I. ROLL CALL AND ADOPTION OF THE AGENDA
II. VISITORS TO BE HEARD
III. RECREATIONAL FIRE ORDINANCE AMENDMENT
IV. 2019 GENERAL FUND OPERATING BUDGET
V. OTHER BUSINESS
VI. ADJOURNMENT
Agenda Information Memo
August 15, 2018 Eagan Special City Council Workshop
III. RECREATIONAL FIRE ORDINACE AMENDMENT
Direction For Consideration:
Review suggested ordinance changes to ordinance 10.40 as it relates to recreational fires in
Eagan.
Facts:
The number one goal of the proposed changes to the recreational fire ordinance is to
continue to allow our residents to enjoy legal recreational fires in our community while
also reducing the growing number of complaints concerning recreational fires that
require police and/or fire resources.
Each year Eagan Police and Fire staff respond to a growing number of complaints
concerning recreational fires in our community.
The complaints come in the form of both 911 calls requiring Police and/or Fire staff to
respond to investigate and in the form of calls to the fire department after the fact
complaining about a resident that had been burning items and allegedly not following
the current City Ordinance.
The majority of the complaints revolve around residents not following the ordinance by
burning prohibited items which often create a great amount of smoke which many find
offensive.
Put quite simply, a recreational fire is intended to allow for our residents to enjoy a
small fire for recreational purposes by burning clean, dry firewood much like you would
burn in an indoor fireplace.
Unfortunately many times we discover residents burning yard waste including grass
clippings, brush or green/wet wood from their trees. Other times we have found
residents burning anything from household trash to old furniture.
All of these illegal items create a lot of smoke and the smoke is generally what our
citizens are calling to complain about.
The proposed changes to the recreational fire ordinance are intended to preserve the
tradition of allowing our residents to enjoy a true recreational fire in Eagan by educating
residents on what can be burned and how.
Staff has received some feedback from our residents on this issue. Some residents want
recreational fires to be banned completely due to the smoke created by these fires and
others want the ordinance to allow more ability to burn items currently banned.
Staff has worked with the City Attorneys Office and the following proposed changes are
being recommended for your consideration;
i) Rewording the current ordinance to better define what can and cannot be burned.
ii)This year it was discovered that as currently written the ordinance states “The fire
must be extinguished if it becomes offensive to others…”. As currently written even
if a resident is fully compliant with all the rules, if someone states they are offended
by the fire, it must be extinguished. That wording is being proposed to be removed.
iii)As a compromise for those that would rather have recreational fires banned due to
the smell and smoke from the fires, we are proposing that recreational fires not be
allowed between the hours of midnight and 8am. This will allow residents that want
to sleep with their windows open, the chance to do this in a smoke free atmosphere
after midnight.
iv)Creating a free, on-line annual recreational fire permit that would have our residents
agreeing that they have read the ordinance on recreational fires and will follow the
rules set forth.
(1)The permit process will provide a more effective way to enforce 911 calls of
illegal burning.
(a)The first question a responding Police Officer of Firefighter will ask is do you
have a city permit. If they do and they are following the ordinance we can
quickly wish them a good night and clear.
(b)If they don’t have a permit, the fire will be extinguished and the residents
educated on the permit process. If they are burning prohibited items they
are subject to a violation.
(c)If a permit holder is violating the ordinance by burning prohibited items or
after hours they are also subject to a citation for their violation and two
violations of their permit can result in their permit being revoked for 12
months.
(2)The permit process also creates a data base we can use to notify permit holders
of those rare circumstances when the DNR issues a red flag warning which bans
open burning.
Staff has checked with a number of other cities and many have created the on-line
permit process and setting hours when fires are allowed. This has resulted in a decline in
the number of 911 calls related to recreational fires and/or phone calls to the fire
department regrading recreational fire complaints. A 911 call for a recreational fire in
Eagan generally has a police officer and a fire engine crew respond, which ties up
emergency crews from other calls.
In conclusion the attached proposed suggested changes are intended to reduce illegal
burning complaints and continue to allow recreational fires by updating our current City
Ordinance and education our residents on proper recreational fires.
Attachments: (1)
III-1 Proposed Ordinance Changes from the City Attorney’s Office
III-2 Correspondence
ORDINANCE NO. ____ 2ND SERIES
AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY
CODE CHAPTER TEN ENTITLED “PUBLIC PROTECTION, CRIMES AND OFFENSES” BY
AMENDING SECTION 10.40 REGARDING RECREATIONAL FIRE REGULATIONS AND
REQUIREMENTS; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER
1 AND SECTION 10.99
The City Council of the City of Eagan does ordain:
Section 1. Chapter 10 of the Eagan City Code is hereby amended by revising Section 10.40,
Subd. 6 (B), to read as follows:
B. Requirements for recreational fires. No recreational fire shall be burned without first
obtaining a recreational fire permit from the City. The permit shall be on the form and
pursuant to the application process prescribed by the Eagan Fire Chief. A recreational fire
permit shall be valid for the calendar year of issuance, effective from the date of issuance to
December 31st, and subject to annual renewal thereafter. All permits are subject to the
regulations set forth herein and may be revoked for the failure to comply therewith.
All recreational fires on private and public property shall comply with the following
requirements:
1. Fires must be a minimum of 25 feet from all combustible materials (i.e., dwellings and
structures, decks, fences, etc.), except an outdoor fireplace, as defined herein, shall be a
minimum of 15 feet from all combustible materials.
2. All fires shall be contained within a fire pit, an outdoor fireplace, or fire bowl, chiminea,
or any other free-standing container manufactured for the sole purpose of recreational fires.
No outdoor fireplace, or fire bowl, chiminea, or any other free-standing container shall be
used upon any deck or patio that is constructed of wood, composite materials or any other
combustible materials.
3. Fire pits shall be constructed of and completely surrounded by non-combustible
materials, and shall be located a minimum of ten feet from all property lines.
4. Outdoor fireplaces and fire bowls, chimineas, and all other free-standing fire containers
must comply with all regulations herein.
5. The size of the fire shall not exceed three feet × three feet × three feet.
6. Only dry, clean, unpainted, and untreated wood or cooking charcoal may be burned. All
wood to be burned shall be no longer than three (3) feet in length. Tree branches and sticks,
provided they are dry, clean wood, may be burned as starter kindling for the recreational fire,
but shall not be burned for purposes of disposal in an open burning manner. Brush piles and
bush/scrub debris may not be burned and shall be deemed as yard waste.
7. Chemically treated products, garbage and yard waste, including but not limited to:
chemically treated fireplace logs; treated, painted, stained or glued woods, such as plywood
or particle board; furniture or other household items; or leaves, grass clippings or garden
vegetation, shall not be burned.
8. No fire shall be allowed if winds are greater than 15 miles per hour.
9. A garden hose attached to a water supply or other approved fire extinguishing device
shall be readily available at the location of the recreational fire.
10. The fire must be attended at all times by a person over 18 years in age.
11. The fire must be extinguished if it becomes offensive to others or if not under supervision
by an adult. Prior to igniting any fire, a recreational fire permit shall be issued by the Eagan
Fire Department.
12. No fire shall be allowed during the hours of 12:00 midnight and 8:00 a.m.
Notwithstanding, Aall fires are subject to extinguishment at the direction of the fire or police
department.
13. All outdoor fireplaces shall require a building permit pursuant to Chapter 4 herein. All
outdoor fireplaces shall have a spark arrester.
The Fire Chief shall have the authority to revoke a recreational fire permit when the permit
holder has two or more violations of any regulation herein within a 12-month period. No
permit will be issued for a property at which a permit has been revoked or two or more
violations of any regulation herein occurred at the property within the preceding 12 months
of permit application.
Section 2. Summary approved. The City Council hereby determines that the text of the
summary marked "Official Summary of Ordinance No. ____", a copy of which is attached hereto,
clearly informs the public of the intent and effect of the ordinance. The City Council further
determines that publication of the title and such summary will clearly inform the public of the
intent and effect of the ordinance.
Section 3. Eagan City Code Chapter 1 entitled "General Provisions and Definitions
Applicable to the Entire City Code Including 'Penalty for Violation'" and Section 10.99, entitled
"Violation a Misdemeanor" are hereby adopted in their entirety by reference as though repeated
verbatim.
Section 4. Effective Date. This ordinance shall take effect upon its adoption and
publication according to law.
ATTEST: CITY OF EAGAN
City Council
___________________________ __________________________________
By: Christina M. Scipioni By: Mike Maguire
Its: City Clerk Its: Mayor
Date Ordinance Adopted:
Date Ordinance Published in the Legal Newspaper:
The following is the official summary of Ordinance No. ______ as approved by the City Council of
the City of Eagan on __________________.
ORDINANCE NO. _____ 2ND SERIES
AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY
CODE CHAPTER TEN ENTITLED “PUBLIC PROTECTION, CRIMES AND OFFENSES” BY
AMENDING SECTION 10.40 REGARDING RECREATIONAL FIRE REGULATIONS AND
REQUIREMENTS; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER
1 AND SECTION 10.99
Section 10.40, subdivision 6, is amended to revise the regulations of recreational fires. The
amendment adds a requirement that a recreational fire permit shall be obtained for all fires, subject
to the recreational fire regulations. The amendment clarifies materials that are permitted and
prohibited for burning. The amendment provides for the revocation of a recreational fire permit and
12-month ban from obtaining a permit for repeat violations of the regulations.
A printed copy of the ordinance is available for inspection by any person during regular
office hours at the office of the City Clerk at the Eagan Municipal Center, 3830 Pilot Knob Road,
Eagan, Minnesota 55122.
Effective date. This ordinance shall take effect upon its passage and publication.
City of Eagan
City Code
Sec. 10.40. - Fire-related regulations
Subd. 1. Adoption . The current edition of the Minnesota State Fire Code, and any
amendments thereto established and adopted from time to time by the Minnesota Commissioner
of Public Safety, is hereby adopted as though set forth verbatim herein. One copy of said code
shall be marked "City of Eagan - Official Copy" and kept on file in the office of protective
inspections and open to inspection and use by the public.
Subd. 2. Enforcement.
A. The fire chief or his authorized representative shall enforce the provisions of this
section.
B. The fire chief may detail such members of the fire department as inspectors as shall
from time to time be necessary. The fire chief may recommend the employment of
technical inspectors who, when such authorization is made, shall be selected through an
examination to determine their fitness for the position. The examination shall be open to
members and nonmembers of the fire department, and appointments made after
examination shall be for an indefinite term with removal only for cause.
Subd. 3. Definitions.
A. Whenever the word "jurisdiction" is used in the Minnesota Uniform Fire Code, it shall
be held to mean the city.
B. Wherever the term "corporation counsel" is used in the Minnesota Uniform Fire Code,
it shall be held to mean the city attorney.
Subd. 4. New materials, processes or occupancies which may require permits. The chief
building official, a representative appointed by the council and the fire chief or his
representative shall act as a committee to determine and specify, after giving affected
persons an opportunity to be heard, any new materials, processes or occupancies, which
shall require permits, in addition to those now enumerated in said code. The fire chief shall
post such names in a conspicuous place in his office and distribute copies thereof to
interested persons.
Subd. 5. Fire lane signage requirements.
A. Purpose. The purpose of this subdivision is to create a uniformity in fire lane signage
throughout the city, thereby furthering the prevention and control of fires and fire
hazards.
B. Standards. All fire lanes on private and public property as designated and approved by
the fire chief shall be marked by signage in accordance with the following standards:
1. The sign plate shall be 12 × 18 inches;
2. The sign plate shall be made of aluminum and shall have red lettering on a white
3M or equal engineer's grade reflective sheeting;
3. The sign shall only read:
No Parking Fire Lane
4. A sign shall be posted at each end of the fire lane and at every 100-foot interval
along the fire lane;
5. The sign shall face the direction of travel;
6. The post on which the sign is attached shall be set back at least two feet but not
more than three feet from the curb or driving surface; and
7. The bottom of the sign plate shall be at least seven feet above the ground.
8. The signpost and its foundation and sign mountings shall be so constructed as to
hold signs in a proper and permanent position, to resist swaying in the wind or
displacement by vandalism.
Subd. 6. Recreational fires .
A. Purpose . The purpose of this subdivision is to establish regulations for recreational
fires within the city, thereby furthering the prevention and control of fires and fire
hazards.
B. Requirements for recreational fires . All recreational fires on private and public
property shall comply with the following requirements:
1. Fires must be a minimum of 25 feet from all combustible materials (i.e., dwellings
and structures, decks, fences, etc.), except an outdoor fireplace, as defined herein,
shall be a minimum of 15 feet from all combustible materials.
2. All fires shall be contained within a fire pit, an outdoor fireplace, or fire bowl,
chiminea, or any other free-standing container manufactured for the sole purpose of
recreational fires. No outdoor fireplace, or fire bowl, chiminea, or any other free-
standing container shall be used upon any deck or patio that is constructed of wood,
composite materials or any other combustible materials.
3. Fire pits shall be constructed of and completely surrounded by non-combustible
materials, and shall be located a minimum of ten feet from all property lines.
4. Outdoor fireplaces and fire bowls, chimineas, and all other free-standing fire
containers must comply with all regulations herein.
5. The size of the fire shall not exceed three feet × three feet × three feet.
6. Only clean, unpainted, and untreated wood or cooking charcoal may be burned.
7. Chemically treated products, garbage and yard waste, including but not limited to:
chemically treated fireplace logs; treated, painted, stained or glued woods, such as
plywood or particle board; or leaves, grass clippings or garden vegetation, shall not
be burned.
8. No fire shall be allowed if winds are greater than 15 miles per hour.
9. A garden hose attached to a water supply or other approved fire extinguishing
device shall be readily available at the location of the recreational fire.
10. The fire must be attended at all times by a person over 18 years in age.
11. The fire must be extinguished if it becomes offensive to others or if not under
supervision by an adult.
12. All fires are subject to extinguishment at the direction of the fire or police
department.
13. All outdoor fireplaces shall require a building permit pursuant to chapter 4 herein.
All outdoor fireplaces shall have a spark arrester.
C. Standards for fires or barbecues on balconies or patios . For any structure containing
three or more dwelling units that have a common hallway or shared means of egress:
1. No grills, whether electric, gas, charcoal or open flame, shall be used or stored
upon any balcony above ground level or on any ground floor patio within 15 feet of
the structure.
2. No person shall store or use any fuel, barbecue torch or other similar heating or
lighting chemical or device on any balcony above ground level, or on any ground
floor patio within 15 feet of a structure.
3. No person shall kindle, maintain, or cause any fire or open flame on any balcony
above ground level or on any ground floor patio within 15 feet of a structure.
D. Definitions.
1. Recreational fire . The term "recreational fire" shall mean an outdoor wood
burning fire conducted in compliance with the regulations set forth in this
subdivision and done so for the sole purpose of recreational pleasure and not for the
purpose of destroying or disposing of refuse, garbage, brush, yard waste or any
other item.
2. Outdoor fireplace . The term "outdoor fireplace" shall mean a wood-burning
structure that may be custom built or prefab manufactured for the purpose of
outdoor cooking or recreational fires and includes outdoor wood-burning ovens.
The outdoor fireplace is of such size and weight as to require reinforced concrete
slab as to render it permanent in nature. An outdoor fireplace has a single front-
loading firebox, a smoke chamber and chimney with a spark arrester. Any outdoor
wood burning apparatus that does not meet this definition in any respect shall be
deemed as a chiminea or other free standing wood burning container for purposes
of this subdivision.
Subd. 7. Open burning.
A. Purpose. The purpose of this subdivision is to establish regulations for open burning
fires within the city, thereby furthering the prevention and control of fires and fire
hazards. This subdivision establishes permitted categories of open burn events within
the city and provides a permit process for open burning that does not constitute
recreational fires.
B. Requirements for open burning. All open burning fires on private and public property
shall comply with the following requirements:
From:Tom Drill
To:City Council
Subject:Rec fire ordinance
Date:Tuesday, August 7, 2018 7:56:01 PM
I am writing to voice my support for responsible private rec fires on one's own
personal property. I understand this can be a polarizing issue but I am clearly on the
side of responsible property owner's rights.
Respectfully,
Tom Drill
--
Tom Drill, MyTelepath, Inc.
Tel: 952.400.6004 | Fax: 952.400.6005
tdrill@mytelepath.com | www.mytelepath.com
From:Comcast
To:City Council
Subject:Recreational Fires
Date:Tuesday, August 7, 2018 7:39:47 PM
I am contacting you to respectfully request that full and thorough consideration be made,
including input from all sides of an issue that exists in the resident population concerning the
restricting of recreational fires as it pertains to timeframes.
There has been much discussion on this issue and after being assured by the Fire Chief of
Eagan that any revision to the recreational fire ordinance would be pertinent to requiring
permits and “absolutely not involve timeframes”, those discussions were allowed to fade
away.
I am inviting City Council members to follow the discussion on this subject in two discussion
threads located in the app Next Door in order that the members of the City Council can
appreciate both sides of this all important issue.
Thank you in advance for your full consideration, for your continued hard work on issues of
much greater import, and for always ensuring that due process and the systematic application
of government works. Thank you.
Respectfully,
Ken Merwin
Lone Oak Road
IPetition Link:
https://www.ipetitions.com/petition/eagan-recreational-fire-curfew
From:sttommore
To:City Council
Subject:Recreational fires
Date:Tuesday, August 7, 2018 7:59:21 PM
With respect to those whose complained have led to the city entertaining modifying guidelines
concerning recreational fires, I would like to lodge my opposition to any changes in current
permissions regarding these rather enjoyable outdoor activities. Please let the guidelines stand
as they are.
From:Bonni
To:City Council
Subject:Recreational Fires
Date:Wednesday, August 8, 2018 12:21:40 PM
I know many people enjoy this right of passage, burning fires in their fire pits in the yard, and although allowed
many now want hours to burn extended...PLEASE say “NO.”
Living in AZ for part of the year fire pits aren’t even allowed and here in Eagan I’ve seen way too many neighbors
leave their fire pits smoking all night, burning office furniture and not having their fires far enough away from
property lines, basically thumbing their nose at the law and regulations. Requesting an extension of hours to burn is
a bridge too far.
Many residents have asthma, COPD, allergies or other breathing problems and having fires burning longer simply
exacerbates the problem. Some people who want to extend hours tell us to close our windows if we don’t like the
smoke, and some are as brazen to suggest we move. That does NOT eliminate the problem.
Allowing fire pits is one thing but allowing them to continue burning well into the night into the early morning
hours is something I’m hoping the council and Fire Marshall will take into consideration and keep the rules as is.
Frankly, I’d welcome a stop to all burning due to the air quality only getting worse, ozone becoming more depleted,
and the environmental damage it’s causing.
Thank you,
Bonni L. Kautz
Communi K
651.686.7171 (Office)
651.470.7148 (Mobile)
Website: www.communikgroup.com
Sent from my iPad
From:James W
To:City Council
Subject:Proposed recreational fire limitation by ordinance
Date:Wednesday, August 8, 2018 9:39:13 PM
I am a resident of Eagan for the last decade and wish to continue my ability to enjoy safe
recreational fires on my property. I base my objection to limiting recreational fires on my property
on these points:
1. Having no record of damage to my, or other property as a result of my enjoyment of small,
safe, recreational fires demonstrates their general harmlessness.
2. There are no published scientific studies that show small wood fires to be harmful to health,
as is the case with tobacco smoking. The smoke is not ingested in the same manner.
3. Limiting recreational fires without demonstrating their harm limits my use of my real property
without due compensation. If
I cannot have a small, safe fire I must ask the City to compensate me for my investment in the
structures that make my fires safe.
4. If neighbors are bothered by the smoke from an otherwise safe, small fires it is best for those
folks to approach the neighbor to work out a mutually satisfactory solution rather than using
the sledgehammer technique of forcing a City ordinance onto the majority of it’s citizens
without the general population’s knowledge.
5. Allowing a relatively small contingent of energetic pro-limitation advocates to continue to
dictate policy on the majority without due process or vote limits my rights to due process
under the Constitution.
I am bothered by small groups dictating to the majority of City residents. I would hope that you take
these points to heart before making any final decisions in this matter. Please keep me informed of
any Council agendas where this topic is discussed.
Sincerely,
James Wrobleski
3625 Ashbury Road
Eagan, MN 55122
218-341-9096
From:Wendy Fox
To:City Council
Cc:Wendy Fox
Subject:Recreational Burning
Date:Monday, August 13, 2018 7:11:35 PM
Hello,
I have been living in the same house in Eagan since 1989 and always boasted about how
wonderful it is to live in Eagan. I used to be able to sit in my backyard and enjoy the peace and
quiet and fresh air. I always enjoyed having my windows open on a cool day and evening.
That all changed when the new neighbors moved in next door around 4 years ago.
I was cleaning my windows and they decided to burn a porch swing that had been stained and
had polyurethane on it. I got extremely nauseated and had to discontinue cleaning my
windows.
They started clearing the common area behind their house. This property belongs to the
Home Owners Association (HOA) and is not to be used by the homeowner. But they continue
to chop down trees in this area and at one time, were burning all the debris on the HOA
property putting all homeowners in the association at risk. We have small children in the
neighborhood that could get hurt. They burn all day and all night, during the week and
weekends, and whenever they are home. They used to burn next to the large pile of dry
debris that could easily catch fire. The fire is usually unattended, especially during the night
when they are sleeping.
Not only do they burn the debris from their property and the HOA property, they take debris
from the neighbors. One of the neighbors chopped down several 25-30-year-old arborvitaes
that have been added to the debris pile. They also took the debris from a neighbor who’s 30-
year-old tree was hit by straight line winds. I recommend you stop by and look at the piles of
debris on the HOA property behind their house that will eventually get burned or catch fire.
After years of enduring the smoke, I emailed the ordinance to them back in 2016. This of
course created a rift between us and didn’t have any affect on their burning habits.
This is what I emailed to them back in 2016:
Burning is for recreational purposes only and not for continual unattended burning or
for burning all of the neighborhood’s debris. I noticed you took all of the debris from
the new neighbors and I’m assuming you will start one of your continual burns. When
you burn, I have to close my windows and doors to prevent the smell from getting into
my house. I can’t even have my windows open while I’m sleeping because you
continue to let the fire burn well into the night. Please see the attached document
containing the city ordinance on burning.
A few weeks ago, I couldn’t take the burning any longer, so I called 911, which is what the Fire
Marshall had told me to do a couple of years ago when I talked to him about the ordinance.
The fire department showed up and the fire was not extinguished. I had to have my windows
closed, the air on and run my air purifiers to get the stench out of my house. The next
morning the fire was still smoking, and it reeked outside. So once again, I was unable to enjoy
sitting outside. They burned all weekend long. The next weekend they started burning again.
I called 911 and the fire was not extinguished. They continued to burn all weekend. Again, I
was unable to enjoy sitting outside.
This is going to continue unless they are told they cannot burn any longer. I have thought
about moving but a few years ago I spent a lot of money on a porch and landscaping, which I
can’t enjoy because of the burning. The stench gets into my porch and my house even with
the windows and doors closed. I can’t have friends over when they are burning because they
don’t like the smoke. I’m a single person and this has been extremely difficult for me to deal
with. I’m extremely health conscious and don’t want to inhale the smoke, which is unhealthy.
I recommend you visit the EPA site for the health effects of wood burning. I follow the
ordinances, laws, HOA rules, etc. and I expect my neighbors to do the same. Plus, the debris
they continue to accumulate is a fire hazard, which is of concern to me.
Thank you for your time!
From:MJ Lamon
To:City Council
Cc:Mike Scott
Subject:Recreational Fires
Date:Wednesday, August 15, 2018 10:29:36 AM
Eagan City Council,
My name is MJ Lamon and I live at 3878 Canter Glen Lane. My family and I have been a
resident in Eagan since 2004. We are a busy family with four kids which means you will often
times find us playing in our yard and enjoying time together. Recreational fires and of course
smores is a favorite activity of our kids. However, we have not enjoyed a recreational fire
since May due to a restriction in recreational fires that allows any person who is "offended" by
the fire to call the fire department and ask us to put it out regardless of being in compliance
with all the requirements. In May we were visited twice by the Eagan Fire Department. We
were fortunate to have several firefighters come to our house very respectfully to follow up on
a neighbor complaint. I can't tell you how amazing and kind they were. And while my kids
and neighbors enjoyed seeing the firefighters both evenings, I feel horrible that they had to
spend their time (and tax money) on a recreational call.
My email is not to critique all the changes in City Code when it comes to recreational fires,
but make sure that recreational fires can be enjoyed by families and residents in Eagan without
people feeling like they are "offending" others. I trust the Fire Chief in making a
recommendation to code that ensures residents can still enjoy recreational fires and there is a
reason behind making additional changes to the policy. The way the current policy is written
allows individuals to use it as a form of harassment, when really the right thing to do is to have
a conversation with each other. I work in local government so I am very familiar with
complainant statutes and how we are a complaint only city. That is not the community that I
want to be a part of. I want to know my neighbors and have open, honest conversations. I want
to support each other and look out for everyone's best interest. Knowing your neighbors makes
a neighborhood safer and a better place to live.
I hope Council doesn't get bogged down in the details of potential resident complaints, but
remember the initial intent of looking at this policy. Success of policies is not defined as
consensus, but defined as is it in the best interest of the community. You probably are not
going to get more people like me promoting the changes to City Code, but that is because
people who agree are not the ones you are going to hear from. My comment should not be
drowned out by a higher number of complaints. Making decisions is not about having more of
the same information, it is about having new information.
Thank you,
MJ Lamon
-- MJ Lamon
PairSquared Blog
1. No person shall start or allow any fire on any property in the city that does not
comply with the recreational fire requirements in this section unless the person first
obtained an open burn permit.
2. Open burning permits shall be obtained by making application for approval to the
city fire chief, fire marshal, fire inspector, or fire official on a form prescribed by
the Department of Natural Resources (DNR) and adopted by the Eagan Fire
Department. The location is subject to a preliminary site inspection to locate the
proposed burn site, note any special conditions necessary for the permit, review fire
safety considerations, and set dates and times of permitted burn. If established
criteria for the issuance of an open burning permit are not met during review of the
application or it is determined that a practical alternative method for disposal of the
material exists or a pollution or nuisance condition would result, or if an open burn
event safety plan cannot be drafted to the satisfaction of the fire chief, fire marshal,
fire inspector or fire official, the application for the open burn permit may be
denied.
3. A minimum of five acres is required to obtain an open burn permit, and the open
burn must be a minimum of 300 feet from all combustible materials (i.e. dwellings
and structures).
4. The permit holder shall be at and attending to the open burn at all times. The open
fire shall be completely extinguished before the permit holder or his/her
representative leaves the site. No fire may be allowed to smolder without the permit
holder or his/her representative present on the site.
5. The open burn site shall have available appropriate communication and fire
suppression equipment as set forth in the fire safety plan in case of an emergency.
6. The permit holder shall have the valid permit available for inspection by the police
department, fire department, MPCA or DNR forest officer on the open burn site.
7. No permits will be issued when the DNR has officially declared a burning ban due
to potential hazardous fire conditions or when the MPCA has declared an Air
Quality Alert.
8. The permit holder shall comply with and implement all special conditions noted on
the permit and conditions of the burn event safety plan as established. The permit
holder shall be responsible for all costs incurred as a result of the burn, including
but not limited to city fire suppression and administrative costs and fees incurred in
connection with the open burn.
9. The open burning permit is subject to revocation at the discretion of the fire chief,
fire marshal, fire inspector, fire official, police department, MPCA, or DNR forest
officer. Reasons for revocation may include but are not limited to a fire hazard
existing or developing during the course of the burn; any of the conditions of the
permit are violated during the course of the burn; a pollution or nuisance condition
developed during the course of the burn; or a fire smoldering with no flames
present.
C. Open burn permits. Open burning permits will be allowed only for the elimination of
health hazards, by fire, that cannot be abated by other practical means; ground thawing
for utility repair and construction; disposal of vegetative material for managing forest,
prairie or wildlife habitat; and in development and maintenance of land and right-of-
way where chipping, composting, land spreading or other alternative methods are not
possible or practical; disposal of diseased trees generated on site; disposal of diseased or
infected nursery stock; and fire training that is permitted by the MPCA.
Subd. 8. Declaration of burning ban. The city fire chief may declare a burning ban within
the city subject to the terms herein. A burning ban may be declared when a public fire hazard
exists within the city based upon the city's fire danger rating as established by the Minnesota
Department of Natural Resources. A burning ban may be in effect for a period up to 30 days,
unless the city council authorizes a ban for a period longer than 30 days. All recreational fires
and open fires are prohibited and no open burning permits will be issued during a declared
burning ban.
(Code 1983, § 10.40, eff. 1-1-83; Ord. No. 166, 2nd series, eff. 5-14-93; Ord. No. 175, 2nd
series, eff. 2-4-94; Ord. No. 183, 2nd series, eff. 6-24-94; Ord. No. 269, 2nd series, eff. 12-24-
98; Ord. No. 424, 2nd series, § 1, eff. 4-15-08; Ord. No. 502, 2nd series, §§ 1, 2, eff. 5-15-2012;
Ord. No. 513, 2nd series, § 1, eff. 11-20-2012; Ord. No. 515, 2nd series, §§ 1, 2, eff. 3-5-2013)
Cross reference— Fire department, § 2.32.
Agenda Information Memo
August 15, 2018 Special City Council Meeting
2019 General Fund Budget and Tax Levies
Direction to Be Considered:
To provide direction to staff regarding the proposed 2019 General Fund Budget and the proposed 2019
tax levies.
Facts:
2018 was the first time the City of Eagan embarked on a two year budget process.
During the process of reviewing and adopting the 2018 Budget and property tax levies, staff
presented information to the City Council on a proposed 2019 Budget and property tax levy.
The Budget team‐‐‐City Administrator Dave Osberg, Assistant City Administrator Dianne Miller,
Assistance Finance Director Josh Feldman, and Finance Director Tom Pepper provided direction
to the Senior Management Team on a process for submitting operating budget amendments.
Since the process of preparing and reviewing the 2018 and 2019 operating budgets was
completed and approved in concept by the City Council last year, the Budget Team did not
revisit those numbers, unless one or more of the following criteria were met:
1.) Subsequent to budget approval in December 2017, Council has taken action
resulting in significant financial impact not originally considered in the 2018‐2019
budgets.
2.) Market factors, such as the price of salt or steel, have changed significantly from a
year ago, with impact of more than $10,000 on a single line item in the
department’s budget.
3.) Salaries/benefits have changed significantly as a result of resignations or
retirements. Most of these changes will be related to departures and new hires.
Last year at this time, staff projected the overall 2019 Property Tax Levy would increase by
5.60%. The overall 2019 Property Tax Levy is now proposed to increase is 5.82%.
The Budget Team and Directors will be present at the meeting to respond to any questions the
City Council may have about the proposed budget.
The 2019 and overall proposed 2019 Property Tax Levy are scheduled to be considered at the
September 4, 2018 City Council meeting.
The capital equipment and vehicles; general facilities renewal and replacement, and other
capital items will be presented at the October 9, 2018 Special City Council meeting.
Attachments
2019 Budget Memo from City Administrator Osberg
2019 Budget Powerpoint presentation
1
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY ADMINISTRATOR OSBERG
DATE: AUGUST 15, 2018
SUBJECT: PROPOSED 2019 GENERAL FUND OPERATING BUDGETS, PAYABLE
2019 PROPERTY TAX LEVIES, AND BUDGET INFORMATION
INTRODUCTION
As the City Council will see in the following pages, the 2019 Budget will show increases
in both the annual budget and levy, which can in large part be attributed to the significant
development the community is experiencing. With community growth comes the need for
a higher level of City service delivery. The increase in tax capacity from new
construction alone over the next five years is projected to be 5% in total. About 1% of
the increase will occur in 2018-19, with an additional 4% over 2020-2022.
Eagan is a changing City, as the last few years have included major commercial
developments in Cedar Grove and Central Park Commons. In 2018, the first phase of
the Viking Lakes development opened, with the Minnesota Vikings making Eagan their
new home for operations and their summer training camp. Additional development
opening in 2018-2019 includes Twin Cities Orthopedic, Prime Therapeutic, Quarry Road
housing and retail, Hilton Home2 Hotel in Cedar Grove, along with numerous other
senior living facilities.
With an estimated 57,000 jobs in Eagan, the City remains one of the largest employment
bases in the Twin Cities. The combination of growth and the increasing employment
base means the City’s service demands are changing.
MEETING PURPOSE
The City is required by State law to certify the payable 2019 property tax levy to the
County Treasurer-Auditor on or before September 28, 2018. The primary purpose of the
August 15, 2018 Special City Council meeting is to review the preliminary 2019 General
Fund Budget and property tax levy, to assure adjustments can be made in a timely
manner before the September 28, 2018 deadline.
2
BUDGET ADOPTION PROCESS
The essence of the 2019 budget was drafted a year ago as part of the City’s first two-
year operating budget. The Council first reviewed the 2019 budget in August 2017. In
April 2018, Department Heads were given the opportunity to propose modifications to
their original 2019 draft budgets if the changes met one of three criteria:
1) the City Council had taken action in 2018 resulting in significant 2019 budget
impact;
2) market factors (e.g., the price of steel, development activity) had changed
significantly; or
3) salaries/benefits had changed significantly as a result of retirements or
resignations.
Modifications were submitted and reviewed by the Budget Team. Not all of the
proposed changes are presented for consideration. Below is a summary of the Budget
Team’s proposed modifications, resulting in a net increase of $173,600 or 0.5% over the
amount presented a year ago:
Total 2019 General Fund budget, as presented in Dec 2017 37,963,000$
Police/Fire PERA rate increase (2018 legislation) 73,600
Firefighter OT built into 24‐hr shifts 35,800
Unemployment costs ‐ previously not budgeted 26,000
Fire contractual overtime (cost offset by revenues) 22,700
Vehicle wash supplies for new wash bay 20,000
HR TPA admin fees ‐ previously not budgeted 18,600
Revised estimate for LOGIS services 15,100
Temp/seasonal help ‐ Central Svcs Maintenance 14,000
Streets maintenance ‐ one staff assigned foreman 10,000
Salary adjustments due to retirements/resignations (68,000)
Fire Academy moves to IGH (offset by reduced rev) (25,600)
Other 31,400
Total Changes 173,600
Proposed Revised 2019 General Fund budget 38,136,600$
Formal action on the levy and 2019 General Fund budget is scheduled for the City
Council meeting on September 4, 2018, but could be delayed until the meeting on
September 17, 2018. Should the City Council wish to have further discussion on budget,
time could be set aside at the September 11, 2018 City Council workshop; which could
also be preceded by a meeting of the Finance Committee. The Truth in Taxation hearing
is tentatively scheduled for Tuesday, December 4, 2018. Final approval of the budget
and levy could be scheduled for Tuesday December 20, 2018, should the City Council
choose not to approve at the meeting on December 4, 2018.
3
EXECUTIVE SUMMARY
• The 2019 General Fund Budget is proposed to increase by 5.5% and the overall Levy
would increase by 5.8%.
• The market value of the City has increased by 9.7% or $784,133,987 from 2018 to
2019, mostly from valuation changes on existing property.
• The average Eagan household market value has increased from $276,699 in 2017 to
$300,093 in 2018 for payable 2019 taxes.
• The City’s tax capacity rate would be .35114 for payable 2019, a decrease from the
2018 rate of .36378.
• City Taxes on the Average Market Value house in Eagan would be $1,055 or an
increase of 5.6%.
• Additional staff are included in the 2019 budget, at a cost of $ 929,700, to respond to
service demands, including: Phase #2 of the Fire Staffing Study recommendations (6
Firefighters), an additional (2) Police Officers, and one Park Maintenance Worker.
4
5
6
General Fund Budget
The proposed 2019 General Fund budget is proposed to be $38,136,600, an increase of
$1,987,800 or 5.2% over the 2018 expenditure budget. The next few pages contain
similar information shared with the City Council during last year’s preliminary view of the
2019 budget.
Revenue estimates
The 2019 budget as proposed is based on a continuation of the City’s established
practice of estimating revenues on the conservative side within a realistic range.
Significant revenue changes are noted below:
2019 Budget
- Permit revenue is expected to decrease $73,000 since significant portions of the
Viking Lakes project are expected to be completed by 2019.
- Project Administration revenue and internal engineering charges are
programmed to increase $177,900 due to an expected increase in administrative
and engineering services performed for utility, street, trail and street light
projects.
General Fund Revenues 2018 2019 $ %
Property Taxes 27,995,600 29,937,700 1,942,100 6.9%
Licenses and Permits 1,565,100 1,492,100 (73,000) -4.7%
Inter-gov't Rev. 1,174,400 1,172,700 (1,700) -0.1%
Charges for Services 2,044,100 2,198,500 154,400 7.6%
Program and Other Revenues 885,700 979,200 93,500 10.6%
Fund Balance 375,000 210,000 (165,000) -44.0%
Transfers In 2,108,900 2,146,400 37,500 1.8%
36,148,800 38,136,600 1,987,800 5.5%
∆
7
Expenditures
2019 Budget
- Ice control materials are programmed to increase $43,000 in order to keep
inventory at safe levels.
- The proposed 2019 budget incorporates the increased use of technology with the
following platforms:
o Human Resources is proposing the use of an open enrollment package
that will assist the with process of benefit enrollment and Cobra coverage
that is estimated to cost $33,300
o A $34,000 Network Security Assessment is proposed in the Information
Technology budget. The proposal is intended to help maintain a highly
secured network environment by possibly identifying threats and
vulnerabilities so they can be eliminated.
o The Lexipol software is proposed in the 2019 Police budget at a cost of
$30,000. The software is designed to assist in keeping the department
up to date on the latest risk management policies and provide additional
resources based on federal and state statutes, case law, regulations and
best practices.
- The proposed 2019 budget includes a contingency account of $39,000 for
unplanned expenses.
General Fund Expenditures 2018 2019 $ %
Personal Services 27,610,300$ 29,580,400$ 1,970,100$ 7.1%
Parts & Supplies 1,844,600 1,949,100 104,500 5.7%
Services & Other Charges 6,271,000 6,321,600 50,600 0.8%
Capital Outlay 260,100 246,800 (13,300) -5.1%
Contingency 162,800 38,700 (124,100) -76.2%
36,148,800$ 38,136,600$ 1,987,800$ 5.50%
∆
8
9
2018 2019
Approved Proposed
Existing Personnel Budget Budget $ %
Regular Employees
Salaries/wages/overtime 17,744,900$ 19,499,100$ 1,754,200$ 9.9%
Constractual Services 100,000 118,100 18,100 18.1%
PERA 2,049,700 2,345,200 295,500 14.4%
FICA 839,400 902,300 62,900 7.5%
Health/Life/LTD insurance 2,539,100 2,939,800 400,700 15.8%
Worker's compensation 619,200 685,900 66,700 10.8%
Volunteer firefighters compensation 498,700 382,000 (116,700) -23.4%
Fire Relief Association (pension) 683,700 596,500 (87,200) -12.8%
Unemployment compensation - 26,000 26,000 N/A
25,074,700 27,494,900 2,420,200 9.7%
Proposed Additions FTE
Police Officers - 2018 3.00 318,300 - (318,300)
Police Officers - 2019 2.00 - 221,700 221,700
Fire Captains - 2018 4.00 487,200 - (487,200)
Fire Fighters - 2018 2.00 200,000 - (200,000)
Fire Fighters - 2019 6.00 - 611,500 611,500
Park Maintenance Worker - 2018 1.00 83,200 - (83,200)
Park Maintenance Worker - 2019 1.00 - 86,500 86,500
Streets Foreman (Adjustment) - 10,000 10,000
Equipment Maintenance Worker 1.00 78,300 - (78,300)
GIS Technician 1.00 50,400 - (50,400)
Property Room Technician 0.50 38,500 - (38,500)
Part-time Clerical Tech support 0.25 21,300 - (21,300)
Part-time GIS/Office support 0.13 8,100 - (8,100)
19.00 1,285,300 929,700 (355,600)
Temporary/Seasonal
Elections (every other year) 77,300 - (77,300)
Accountant II replacement (temp) 25,100 - (25,100)
GIS Intern 8,800 8,800 -
IT Security Intern 8,800 8,800 -
IT Intern 8,800 8,800 -
Finance Intern 11,900 - (11,900)
Planning Intern 8,900 8,900 -
Communications Intern 2,100 2,100 -
Pub Wks/Engineering 21,400 21,400 -
Pub Wks/Streets 39,500 40,700 1,200
Central Services 15,000 29,100 14,100
Recreation 558,000 558,100 100
Parks 310,800 310,800 -
Tree Conservation 153,900 158,300 4,400
1,250,300 1,155,800 (94,500)
Total Personnel 27,610,300$ 29,580,400$ 1,970,100$ 7.1%
General Fund Personnel Summary
2019 Budget
Δ
10
Proposed Additions 2019
The following new positions are proposed to be included in the 2019 budget.
Fire Department
Proposed Positions: Four (6) Fire Fighters in 2019
How will public service be improved if the Firefighters are hired?
The Fire Department is seeking to have two fully staffed units to respond to
calls 24 hours a day, seven days per week. Each unit will include two fulltime
fire fighters with one or two paid-on-call firefighter(s). During times where
staffing is limited, firefighters may be combined to provide one fully staffed unit.
With the proposed staffing, the Fire Department will consistently have two fully
staffed units every day to respond 24 hours a day. Each unit will include three
fulltime fire fighters and one paid-on-call firefighter.
Response times to fires and medical calls for service will improve to meet
widely accepted national fire guidelines.
Fire fighters trained as EMT’s will begin responding to additional medical calls
for service.
The number of paid-on-call firefighters is anticipated to decrease (by attrition)
by approximately 13 people in 2019.
Police Department
Proposed Positions: Two (2) Police Officers in 2019
How will public service be improved if the Police Officers are hired?
The new police officers would be assigned to the patrol division where they
would be responsible for crime prevention, investigation, assistance to the public,
and enforcement of state statute and City ordinances.
These new positions would allow the department to fill the Traffic Enforcement
Unit position and a rotating detective position, while also mitigating staffing
issues that result from officers being on leave, attending training, etc.
The officers will address increasing demands for service associated with existing
and new development, including new retail areas and several new hotels.
The additional officers will also alleviate traffic issues in and around the Viking
Lakes development, particularly with the addition of training camp.
The officers will gain valuable training and experience, which benefits the
department as they continue to see a significant number of retirements by long-
tenured officers.
11
Parks and Recreation
Proposed Positions: One (1) Park Maintenance Worker in 2019
How will public service be improved if the Park Maintenance Workers are hired?
The new park maintenance workers would ensure the City can meet community
expectations by maintaining, constructing, and installing park features and
infrastructure at the community’s 56 parks. They also would maintain government
building sites and perform turf maintenance.
Over the past several years, the City has added new parks (e.g. Bridgeview and
Moonshine), landscape beds, and amenities that contribute to the quality of life in
Eagan, but require maintenance. In combination with aging infrastructure, current
staff is not able to keep up with the inspections, repairs, and maintenance with
current staffing levels.
Additional acreage to maintain will be added at Quarry Park and George
Ohmann Park, as new athletic fields and amenities are added. The development
in NE Eagan and along Quarry Road also increase the amount of boulevard
acreage to be mowed and maintained.
By having the additional fulltime staff in place of seasonal help, the City can
better meet demands for field maintenance, opening of restrooms, etc., which
often is needed and expected by park users prior to seasonal staff coming on
each year.
The financial impact of the requested position is partially offset by the elimination
of three seasonal, part-time positions and a reduction in overtime.
Additional Personnel Costs
The 2019 Budget includes $10,000 for the reclassification of one (1) existing
Street Maintenance Worker to Streets Maintenance Worker/Crew Foreman. The
position would continue to serve as a street maintenance worker, while also
assisting the Streets Maintenance Supervisor with work direction to the crew and
other miscellaneous tasks. The Crew Foreman will lead the street maintenance
crew when the Street Maintenance Supervisor is unavailable. Currently the
Transportation Operations Engineer leads the street maintenance crew when the
Street Maintenance Supervisor is unable. The reclassification offers additional,
needed depth in the department.
12
Other Personnel Requests
The Budget Team has conducted several extensive meetings during the last
several months with Public Works staff. Under the leadership of Public Works
Director Russ Matthys, we have conducted robust discussions about current and
growing service demands, and the future staffing needed to address those
demands. While the 2019 budget does not include a requested additional Street
Maintenance Worker, it is important for the City Council to be aware of the likely
additional staffing requests that will be forthcoming in future years. The Budget
Team, along with Russ and his staff are formulating a long-term vision for staffing
needs and anticipate presenting that vision to the City Council during a future
special City Council workshop.
The Communications Department previously requested the addition of a staff
member through the 2018 budget process. At the recommendation of the budget
team, the new position was not included in the approved 2018 Budget. A request
for the new position (Digital Content Support Specialist) was also made through
the 2019 Budget process. Funding for the specialist position would not come
from the General Fund, (property tax levy), but rather would be funded through
franchise fees. The Budget Team is continuing to review the requested position,
which includes discussions about other approaches that might address the
demands on the Communications Department. At the present time, the additional
staff person is not included in the preliminary 2019 Budget. However, it is
possible an amendment to the 2019 Communications Budget may be
forthcoming, after budget approval, should the budget team make a
recommendation that the new position be considered.
General Fund balance
Per current policy, the City’s General Fund balance target is 40% to 45% of the next
year’s expenditures. As a benchmark, the State Auditor recommends a target range of
35% to 50%.
As of December 31, 2017, the General Fund balance exceeded the upper end (45%) of
the target range by 11%, or $3,952,634. It is anticipated at this time that change orders,
additional technology, and furniture and fixture costs related to the Police/City Hall and
Central Maintenance Facility projects will require additional funding of about $1.4
million. The General Fund balance is the most likely source of the additional funding.
To maintain a 45% fund balance from 2017 to 2018, the fund balance must grow by
$890,000 (45% of the amount of the next year’s budget increase). Put another way, if
2018 operations are break-even, the fund balance in excess of 45% will be reduced by
$890,000.
As planned a year ago, the 2019 operating budget contemplates the use of $210,000 of
General Fund balance that was left over from the 2017 budget due to the delay in
implementing the Springsted compensation study.
13
In summary, assuming (a) use of fund balance for additional remodel project costs, (b)
break-even operating results in 2018, and (c) utilization of $210,000 in the 2019
operating budget, the General Fund balance would still exceed the high end of the 40-
45% range by $1,552,634 at the end of 2018:
Fund Balance as a % of Next Year’s Budget
12‐31‐17 General Fund balance > 45% 3,952,634$
Estimated additional remodel funding (1,300,000)
Add'l required to maintain 45% after budget growth (890,000)
Utilization for 2019 operating budget (210,000)
12‐31‐18 est. General Fund balance > 45% 1,552,634$
14
Market Value and Tax Capacity
After declining from 2009 to 2013, tax capacity values have increased the past 5 years.
Preliminary numbers from Dakota County indicate a 9.7% increase for 2019. Property
values have rebounded back and now exceed pre-Great Recession levels.
The horizontal bar in the chart below illustrates that the taxable market value has
surpassed the 2007 level and is at its highest ever for the City of Eagan.
Based on the information received from Dakota County, the City will see an increase in
overall taxable market value from $8.0 billion for payable 2018 to $8.8 billion for payable
2019. Included in the market value increase is $147 million resulting from new
construction.
The City will see a net tax capacity increase of 9.7% from $ 83.8 million to $ 92.4 million.
15
Tax capacity-based levy
The tax capacity-based component of the City’s 2019 proposed levy for operations and
debt service is $35,629,072, an increase of $2,032,100 or 6% over the 2018 levy of
$33,596,972. The preliminary tax capacity rate calculated at .35114 is 3.5% lower than
the 2018 rate of .36378.
Proposed
Final 2018 2019
Payable Payable Dollars %
Taxable Market Value 8,047,243,551 8,831,377,538 784,133,987 9.7%
Tax Capacity:
Gross Tax Capacity 100,776,788 110,519,313 9,742,525 9.7%
Fiscal Disparities Contribution (13,541,666) (14,345,095) (803,429) -5.9%
Tax Increment Value (3,374,021) (3,751,880) (377,859) -11.2%
Net Local Tax Capacity 83,861,101 92,422,338 8,561,237 10.2%
Comparison of Taxable Market Value and Tax Capacity
Change 2018 / 2019
Final
2018 Amount %
Operating Levy 32,871,206$ 34,682,637$ 1,811,431$
Debt Service Levy 725,766 946,435 220,669
Total Tax Capacity Levy 33,596,972 35,629,072 2,032,100 6.0%
F D Distribution (3,090,301) (3,176,767) (86,466) 2.8%
Net Local Levy 30,506,671$ 32,452,305$ 1,945,634$ 6.4%
Tax Cap Rate-City: 30,506,671$ 32,452,305$
83,861,101$ 92,422,338$
0.36378 0.35114 (0.01264) -3.5%
Comparison of Tax Capacity Levy & Tax Capacity Rates
Proposed 2019
16
Market value-based levy (Community Center 2009B bonds)
Under statute, the levy for debt service on the referendum-approved Community Center
bonds is spread across market value, not tax capacity. Bond covenants require this
levy; it is not optional. The bonds will mature in 2021.
There is slight increase in the market value levy to the average homeowner from 2018 to
2019:
Final
2018 Amount %
Ref Mkt Value 8,280,885,430$ 9,032,879,783$ 751,994,353$ 9.1%
Debt Service Levy 1,124,970$ 1,113,210$ (11,760)$ -1.0%
Mkt Value Ref Rate 0.0001359 0.0001233 (0.0000126) -9.3%
Comparison of Levy for Debt Service & Market Value Referendum Rates
Proposed 2019
Average Annual
Payable Market Rate Tax
Year Value Per $1,000 Amount
2019 300,093 0.1358 40.75
2018 276,699 0.1447 40.04
Market Value Levy Tax Impact
17
Total levy and levy allocation
The total proposed levy is up 5.8% for 2019. The chart below shows the annual
fluctuations for the past 12 years. Significant changes to the levy have been noted by
the year they were incorporated.
Generally, the capital-related levies are slated to increase 2% annually as an inflationary
adjustment. The Fire Apparatus levy (no change) and Major Street Fund–Overpasses
levy (down 29%) are the exceptions. A constant levy amount for Fire Apparatus is
according to the long-term plan when the fund was established. The Overpasses levy
will be phased out completely by 2023 after both the Northwood and Duckwood
overpasses are paid for.
The Parking Ramp levy is used to pay for the City share of maintenance costs for the
ramp. The City share will decrease as the properties adjacent to the ramp are sold and
parking spaces are leased to the property owner(s).
DataBank improvements were completed after January 1, 2015 so a tax abatement levy
was needed in payable 2017. The tax abatement levy is proposed to increase from
$6,000 in 2018 to $11,000 in 2019.
18
Tax Impact
As noted, the estimated 2018 tax capacity rate is down 3.5% from 2018. The market
value tax rate, which represents a much smaller portion of the overall levy, will decrease
by 9.3%.
The overall impact to the property owner of the change in tax rates depends on the
property type and the value of the property. For simplicity’s sake, a comparison of
various values of homestead property is shown below with their associated City taxes
over a range of years.
Again, pending final word on the fiscal disparities distribution—likely in September—
these tax figures could go up or down.
The shaded areas show the estimated market value and taxes in 2019 of the property
value immediately above it, as it may have been valued/taxed in 2018. For example, a
$150,000 home in 2018 would have had city taxes of $480. That same home may be
valued at $162,682 in 2019 (based on average value increases), causing it to have 2019
taxes of $512, an increase of $32. If the value of that home stayed the same from 2018
to 2019, the taxes would have decreased by $18 to $462.
Final
2017 $ change % $ change %
General Fund 26,427,500$ 27,995,600$ 1,568,100$ 5.9% 29,937,700$ 1,942,100$ 6.9%
Special Revenue - Parking Ramp 60,000 39,000 (21,000) -35.0% 41,000 2,000 5.1%
General Facilities R & R 345,881 230,000 (115,881) -33.5% 235,000 5,000 2.2%
Equipment Revolving Fund 1,260,055 1,500,000 239,945 19.0% 1,530,000 30,000 2.0%
Major Streets Fund - A 1,867,150 1,904,000 36,850 2.0% 1,942,000 38,000 2.0%
Major Streets Fund - B (Overpasses) 539,478 554,493 15,015 2.8% 394,723 (159,770) -28.8%
Fire Apparatus - Debt 211,437 205,887 (5,550) -2.6% 265,839 59,952 29.1%
- Revolving 148,563 154,113 5,550 3.7% 94,161 (59,952) -38.9%
Park Systems Development & R & R 478,403 488,000 9,597 2.0% 498,000 10,000 2.0%
DataBank Abatement 22,000 6,000 (16,000) -72.7% 11,000 5,000 83.3%
Debt Service - 2016 Bonds 534,894 519,879 (15,015) -2.8% 520,771 892 0.2%
Debt Service - 2018 Bonds - - - N/A 158,878 158,878 N/A
Fund Totals 31,895,361$ 33,596,972$ 1,701,611$ 5.3%35,629,072$ 2,032,100$ 6.0%
Market Value Debt Service Levy 1,122,765$ 1,124,970$ 2,205 0.2% 1,113,210$ (11,760) -1.0%
Grand Total Levy 33,018,126$ 34,721,942$ 1,703,816$ 5.2% 36,742,282$ 2,020,340$ 5.82%
Proposed 20192018
Allocation of Property Tax Levy
19
The table below further illustrates the chart above for the average value home.
Market Value for the average value home is noted by the County Assessor to increase
by 8.5%. The City tax for the average valued property is proposed to increase by 5.6%
or $56.
Projected
2015 2016 2017 2018 2019
Tax Capacity Rate 0.36525 0.37097 0.37361 0.36378 0.35114
Market Value Rate 0.0001564 0.0001490 0.0001447 0.0001359 0.0001233
Market Value
150,000$ 485 491 494 480 462
162,682 512
200,000 692 700 704 685 659
216,909 726
276,699 Pay 2018 Average Eagan House Mkt Value 999
300,093 Pay 2019 Average Eagan House Mkt Value 1,055
300,000 1,105 1,120 1,126 1,095 1,054
325,364 1,155
400,000 1,519 1,539 1,548 1,505 1,450
433,819 1,577
Eagan Property Tax History
City Taxes Only
2018 average value: 276,699 2018 city tax: 999
2019 average value: 300,093 2019 city tax: 1055
Increase 23,394 Increase 56
8.5% 5.6%
City Taxes on Average Market Value House in Eagan
20
Longer-term Outlook for Budget and Levy
As we look past 2019, implementation of the remaining hiring recommendations of the
Fire staffing study, as well as other factors, will have an impact on future budgets and
levies. Under the study recommendations, 9 additional full-time firefighters are to be
added in 2020, 9 more in 2022, and the last 3 would be added in 2024. If these Public
Safety additions are implemented according to schedule, and assuming one other non-
Public Safety staff person is added in 2020, we estimate the 2020 levy increase to be
7.0%. Without the ten new positions, the levy increase would be about 4.8%.
Built into the chart below are the following assumptions:
Non-personnel costs and non-tax revenues will grow at 2%
Wages will grow at 3%
Health insurance will grow at 8%
Capital levies (excluding Fire Apparatus) will grow at 2%
21 full-time firefighters will be added between 2020 and 2024
1 non-Public Safety staff will be added in 2020
21
Proposed Next Steps
Staff incorporates City Council direction from this meeting into the budget and
levy.
City Council approves the preliminary levy at the regular meeting on
September 4 (or regular meeting on September 17, if necessary).
The preliminary levy is certified to Dakota County before September 30.
Truth-in-Taxation hearing will be held on December 4 at the regular City
Council meeting with the opportunity to adopt the 2019 Budget and the 2019
tax levy. If not adopted at the December 4 regular meeting, the City Council
will be asked to take action on December 18.
Public Policy Issues
Is the overall general fund budget increase of 5.5% acceptable for 2019?
The overall levy for 2019 is projected to increase by 5.82%. Is the projected
increases acceptable? If not, is there a different target number you would like
Staff to work toward before adoption of the preliminary levy and budget?
Are there concerns or objections to any of the proposed staffing changes you
would like to see changed or request additional information?
Similar to the 2018 budget, the 2019 budget includes using funds from the
2017 contingency that was allocated to allow for implementation of the
compensation study. The study resulted in less cost impact than anticipated
in 2017, but greater impact in 2018 and 2019. The remaining $210,000 of
fund balance (unused portion as of December 31, 2017) is included in the
proposed 2019 budget.
a. Is the City Council comfortable with a transfer of $210,000 from the
general fund balance in 2019 for the continued implementation of the
compensation study results?
b. If Yes; note that the 2020 levy percentage increase from 2019 will be
roughly 0.6% higher than it would have been without this one-time use
of contingency.
c. If No; shall the amounts be added to the levy in 2019, or shall staff
reduce each of the budgets by a like amount?
22
Review and preliminary approval of the 2019 Budget does not need to be
completed at the City Council workshop on August 15. If there are additional
questions or issues you would like to see addressed by Staff, and thus
included in the 2019 Budget as an item on City Council Workshop agenda;
which could be precluded by a meeting of the Finance Committee prior to
September 17, 2018? Or, is the Council comfortable proceeding with the
adoption of a preliminary levy and budget at the September 4 or 17 meeting
based on feedback offered at tonight’s workshop?
Together with the Department and Division Heads, I submit this 2019 proposed budget,
the enclosed budget information and these policy issues for your consideration, while
acknowledging the fluid status of budgeting in today’s world and the need for ongoing
work and discussion to reach a final product for adoption in December.
___________________
City Administrator
23
2018 2019
Budget Budget $%
General Property Taxes 27,995,600 29,937,700 1,942,100 6.9%
Licenses 323,400 323,400 - 0.0%
Permits 1,241,700 1,168,700 (73,000) -5.9%
Intergovernmental Rev 1,174,400 1,172,700 (1,700) -0.1%
Charges for Services 1,272,100 1,401,400 129,300 10.2%
Recreation Charges 772,000 797,100 25,100 3.3%
Fines & Forfeits 251,500 253,500 2,000 0.8%
Other Revenues 366,300 391,900 25,600 7.0%
Program Revenues 267,900 333,800 65,900 24.6%
Fund Balance 375,000 210,000 (165,000) -44.0%
Transfers 2,108,900 2,146,400 37,500 1.8%
TOTAL GENERAL FUND 36,148,800$ 38,136,600$ 1,987,800 5.5%
∆ 2018 vs. 2019
General Fund
2019 Budget
COMPARATIVE SUMMARY OF REVENUES
24
Acct2015 2016 2017 2018 2019No. DESCRIPTION ActualBudgetBudgetBudgetBudgetTAXES:4020AD VALOREM TAXES - CURRENT21,486,709$ 23,119,085$ 24,058,220$ 24,954,900$ 26,897,000$ 896,680 3.7% 1,942,100 7.2%4021AD VALOREM TAXES - DELINQUENT(114,695) (92,551) ‐ ‐ ‐ ‐ N/A‐ N/A4030FISCAL DISPARITIES2,078,157 2,072,267 2,369,280 3,040,700 3,040,700 671,420 28.3%‐ 0.0%4031PENALTIES AND INTEREST21,282 11,977 ‐ ‐ ‐ ‐ N/A‐ N/A4032FORFEITED TAX SALES20,491 (126) ‐ ‐ ‐ ‐ N/A‐ N/A TOTAL23,491,944$ 25,110,651$ 26,427,500$ 27,995,600$ 29,937,700$ 1,568,100 5.9% 1,942,100 6.5%LICENSES:4055LIQUOR250,005$ 286,938$ 250,000$ 270,000$ 270,000$ 20,000 8.0%‐ 0.0%4056BEER‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4057TOBACCO9,000 8,933 9,400 9,000 9,000 (400) ‐4.3%‐ 0.0%4058TREE MTN CONTRACTOR 1,675 1,650 1,400 1,400 1,400 ‐ 0.0%‐ 0.0%4059GARB/RUBBISH HAULING8,900 7,681 9,000 8,600 8,600 (400) ‐4.4%‐ 0.0%4060KENNEL50 ‐ 100 ‐ ‐ (100) ‐100.0%‐ N/A4061DOG18,531 23,221 31,000 26,700 26,700 (4,300) ‐13.9%‐ 0.0%4063PET SHOP LICENSE150 100 200 200 200 ‐ 0.0%‐ 0.0%4064MASSAGE THERAPIST7,850 7,188 7,200 7,500 7,500 300 4.2%‐ 0.0% TOTAL296,161$ 335,710$ 308,300$ 323,400$ 323,400$ 15,100 4.9%‐ 0.0%PERMITS:4085BUILDING810,680$ 1,033,966$ 887,700$ 900,000$ 850,000$ 12,300 1.4% (50,000) ‐5.9%4087PLUMBING92,373 112,630 120,000 120,000 110,000 ‐ 0.0% (10,000) ‐9.1%4088MECHANICAL94,244 181,021 100,000 140,000 130,000 40,000 40.0% (10,000) ‐7.7%4089SIGN22,739 48,458 20,000 20,000 20,000 ‐ 0.0%‐ 0.0%4091WELL/PRIVATE SEPTIC74 74 100 100 100 ‐ 0.0%‐ 0.0%4093DEMOLITION/MOVING55 59 ‐ ‐ ‐ ‐ N/A‐ N/A4094EXCAVATING5,600 5,900 2,500 2,500 2,500 ‐ 0.0%‐ 0.0%4095CONDITIONAL/SPECIAL USE4,950 4,718 4,000 5,000 5,000 1,000 25.0%‐ 0.0%4096FIRE SUPPRESSION PERMITS19,915 37,853 ‐ 23,000 20,000 23,000 N/A (3,000) ‐15.0%4097FIREWORKS PERMITS1,620 1,368 1,600 1,400 1,400 (200) ‐12.5%‐ 0.0%4098SPECIAL EVENT PERMITS1,050 300 1,000 400 400 (600) ‐60.0%‐ 0.0%4100UTILITY69,504 116,738 27,500 27,500 27,500 ‐ 0.0%‐ 0.0%4102PUBLIC ROW CONST270 120 800 800 800 ‐ 0.0%‐ 0.0%4116CHICKEN PERMIT1,200 1,150 1,200 600 600 (600) ‐50.0%‐ 0.0%4118BEEKEEPING PERMIT250 450 500 300 300 (200) ‐40.0%‐ 0.0%4120OTHER175 4,099 1,300 100 100 (1,200) ‐92.3%‐ 0.0% TOTAL1,124,699$ 1,548,903$ 1,168,200$ 1,241,700$ 1,168,700$ 73,500 6.3% (73,000) ‐6.2% ∆2018 to 2019 %GENERAL FUNDREVENUES BY LINE ITEM ∆2017 to 2018 %
25
Acct2015 2016 2017 2018 2019No. DESCRIPTION ActualActualBudgetBudgetBudgetINTER-GOV'T REV:4135FEDERAL GRANTS501,702$ 246,748$ 60,200$ 34,400$ 34,500$ (25,800) ‐42.9% 100 0.3%4140STATE GRANTS31,641 54,609 44,300 40,000 38,100 (4,300) ‐9.7% (1,900) ‐5.0%4151LOCAL PERFORMANCE AID9,353 9,451 9,200 9,300 9,400 100 1.1% 100 1.1%4153MVHC190 192 ‐ ‐ ‐ ‐ N/A‐ N/A4155MSA - MAINTENANCE70,620 71,805 76,000 76,000 76,000 ‐ 0.0%‐ 0.0%4158POLICE TOWN AID537,024 571,926 525,000 544,700 544,700 19,700 3.8%‐ 0.0%4159POLICE TRAINING AID22,656 21,261 22,600 22,600 22,600 ‐ 0.0%‐ 0.0%4160STATE PERA AID33,114 33,114 33,100 33,100 33,100 ‐ 0.0%‐ 0.0%4161FIRE STATE AID401,537 407,948 375,000 394,800 394,800 19,800 5.3%‐ 0.0%4175COUNTY GRANTS‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4177OTHER GRANTS AND AIDS‐ ‐ 5,000 19,500 19,500 14,500 290.0%‐ 0.0% TOTAL1,607,837 1,417,054 1,150,400 1,174,400 1,172,700 24,000 2.1% (1,700) ‐0.1%CHARGES FOR SERVICES:4205VARIANCE FEES3,700$ 3,400$ 3,500$ 2,000$ 2,000$ (1,500) ‐42.9%‐ 0.0%4206PLATTING FEES10,597 12,751 8,000 8,000 8,000 ‐ 0.0%‐ 0.0%4207REZONING FEES5,000 5,950 5,000 5,000 5,000 ‐ 0.0%‐ 0.0%4210RETURNED CHECK FEE796 1,470 700 800 800 100 14.3%‐ 0.0%4212DOG IMPOUND/KENNEL FEE4,270 3,320 5,000 5,000 5,000 ‐ 0.0%‐ 0.0%4214BURGLAR ALARM FEES21,091 23,158 20,000 20,000 20,000 ‐ 0.0%‐ 0.0%4215REPEAT NUISANCE CALL FEE‐ 1,250 300 500 500 200 66.7%‐ 0.0%4216DAYCARE INSPECTION FEES450 518 400 500 500 100 25.0%‐ 0.0%4220VACATION PROCEEDINGS2,800 4,400 2,800 3,000 3,000 200 7.1%‐ 0.0%4221PUBLIC SAFETY FEES1,072 398 1,000 1,200 1,200 200 20.0%‐ 0.0%4222PLAN CHECKS378,073 492,493 350,000 400,000 400,000 50,000 14.3%‐ 0.0%4223PLANNED DEVELOPMENT REVIEW500 ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4226DEV ESCROW REIMBURS199,567 241,399 100,000 100,000 100,000 ‐ 0.0%‐ 0.0%4227ENGINEERING SERVICES569,760 559,368 270,600 381,100 493,500 110,500 40.8% 112,400 22.8%4228ENG/FINANCIAL ADMINISTRATION6,068 7,356 6,000 6,200 6,200 200 3.3%‐ 0.0%4230PRINT MATERIAL/OTHER FEES4,116 4,357 4,100 4,200 4,300 100 2.4% 100 2.3%4231RESEARCH OF CITY RECORDS‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4233TOBACCO NON-COMPL. PENALTY‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4234CONTR SERVICES - SECURITY/EMS118,527 150,233 121,100 134,400 157,100 13,300 11.0% 22,700 14.4%4236POL SVCES TO SCHOOL DIST100,387 77,377 77,900 79,400 79,400 1,500 1.9%‐ 0.0%4239INVESTIGATION FOR LICENSING13,200 22,550 15,000 20,000 20,000 5,000 33.3%‐ 0.0%4241ALCOHOL NON-COMPL. PENALTY500 1,500 ‐ ‐ ‐ ‐ N/A‐ N/A4242MAINT EQUIP & PERS CHG8,274 8,381 11,000 13,700 13,700 2,700 24.5%‐ 0.0%4245PERMIT SURCHARGE1,031 1,511 1,000 900 900 (100) ‐10.0%‐ 0.0%4246ADMN FEE ON SAC5,616 16,079 5,600 16,000 5,600 10,400 185.7% (10,400) ‐185.7%4247ROOM TAX ADMIN FEE47,669 50,630 48,000 48,000 48,000 ‐ 0.0%‐ 0.0%4260INVESTMENT MGMT FEE11,077 12,374 11,000 22,200 26,700 11,200 101.8% 4,500 16.9%OTHER50 20 ‐ ‐ ‐ ‐ N/A‐ N/A TOTAL1,514,191 1,702,242 1,068,000 1,272,100 1,401,400 204,100 19.1% 129,300 9.2%% ∆2018 to 2019 GENERAL FUNDREVENUES BY LINE ITEM ∆2017 to 2018 %
26
Acct2015 2016 2017 2018 2019No. DESCRIPTION ActualActualBudgetBudgetBudget4310-13RECREATION PROGRAM FEES:3001GENERAL/ADMIN RECREATION633$ ‐$ ‐$ ‐$ ‐$ ‐ N/A‐ N/A3027HOLZ FARM1,490 1,200 2,000 1,600 1,600 (400) ‐20.0%‐ 0.0%3029SAFETY CAMP3,450 2,650 4,400 4,400 4,400 ‐ 0.0%‐ 0.0%3032-5TENNIS14,175 7,340 15,700 9,400 10,700 (6,300) ‐40.1% 1,300 12.1%3037-8GOLF9,250 7,799 6,900 6,000 6,000 (900) ‐13.0%‐ 0.0%3041-3VOLLEYBALL23,851 22,850 28,600 29,600 29,700 1,000 3.5% 100 0.3%3044-6BROOMBALL4,863 4,933 5,600 6,300 6,300 700 12.5%‐ 0.0%3047T-BALL18,782 17,777 16,100 17,000 17,100 900 5.6% 100 0.6%3048ADULT SOFTBALL-MEN94,492 93,871 98,400 93,400 93,400 (5,000) ‐5.1%‐ 0.0%3049ADULT SOFTBALL-WOMEN4,037 3,493 4,100 3,500 3,500 (600) ‐14.6%‐ 0.0%3050ADULT SOFTBALL-CO-REC21,881 20,403 24,300 23,200 23,200 (1,100) ‐4.5%‐ 0.0%3052FOOTBALL2,651 4,115 3,100 3,800 3,800 700 22.6%‐ 0.0%3054-6HOCKEY/BOOT HOCKEY‐ ‐ 1,300 ‐ ‐ (1,300) ‐100.0%‐ N/A3057PRESCHOOL PROGRAMS135,863 154,486 172,600 175,900 180,800 3,300 1.9% 4,900 2.7%3058,75TEENS3,257 2,636 3,200 5,700 6,100 2,500 78.1% 400 6.6%3059SUMMER IN THE PARK27,330 24,025 28,100 35,500 37,600 7,400 26.3% 2,100 5.6%3060PUPPET WAGON1,569 1,776 1,500 1,700 1,700 200 13.3%‐ 0.0%3061MARKETFEST24,528 26,479 22,400 24,400 24,900 2,000 8.9% 500 2.0%3062SCHOOL'S OUT EVENTS160 ‐ 900 ‐ ‐ (900) ‐100.0%‐ N/A3063SEASONAL SPECIAL EVENTS5,767 6,351 9,800 ‐ ‐ (9,800) ‐100.0%‐ N/A3065SPECIAL EVENTS385 1,805 11,300 ‐ ‐ (11,300) ‐100.0%‐ N/A3066DANCE5,136 5,481 7,100 4,300 4,600 (2,800) ‐39.4% 300 6.5%3067ADAPTIVE/INCLUSION‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A3071,74TUBING HILLS4,723 9,781 6,000 8,700 8,700 2,700 45.0%‐ 0.0%3076BASKETBALL21,854 18,298 22,300 26,200 26,100 3,900 17.5% (100) ‐0.4%3077WIFFLEBALL2,194 2,684 2,200 2,800 2,800 600 27.3%‐ 0.0%3078SENIOR CITIZENS26,910 19,024 30,000 51,300 53,800 21,300 71.0% 2,500 4.6%3079FUN RUNS/WALKS6,705 5,300 15,000 16,400 18,400 1,400 9.3% 2,000 10.9%3080CONCESSIONS4,709 ‐ 2,800 ‐ ‐ (2,800) ‐100.0%‐ N/A3081ARTS COUNCIL125,078 128,680 111,600 127,500 131,600 15,900 14.2% 4,100 3.1%3082SPORTS & CREATIVE CAMPS18,550 15,063 23,400 21,300 21,800 (2,100) ‐9.0% 500 2.3%3085FAMILY ACTIVITES1,770 ‐ ‐ ‐ ‐ ‐ N/A‐ N/A3086NEW PROGRAMS‐ ‐ ‐ 2,000 ‐ 2,000 N/A (2,000) N/A3090OFF-LEASH DOG AREA4,613 3,480 4,000 8,500 ‐ 4,500 112.5% (8,500) N/A3092CDGB SENIOR PROGRAMS29,482 33,317 51,600 52,100 54,000 500 1.0% 1,900 3.5%3097MRAC COUMMUNITY ARTS GRANT 1,558 ‐ ‐ 9,500 9,500 9,500 N/A‐ 0.0%3201TREE SALES12,140 ‐ 12,000 ‐ 15,000 (12,000) ‐100.0% 15,000 100.0%OTHER REVENUE749 5,816 3,600 ‐ ‐ (3,600) ‐100.0%‐ N/A TOTAL664,585 650,913 751,900 772,000 797,100 20,100 2.7% 25,100 3.1%% ∆2018 to 2019 %GENERAL FUNDREVENUES BY LINE ITEM ∆2017 to 2018
27
Acct2015 2016 2017 2018 2019No. DESCRIPTION ActualActualBudgetBudgetBudgetFINES & FORFEITS:4410COURT FINES/FORFEITS205,187$ 227,447$ 218,000$ 216,300$ 216,300$ (1,700) ‐0.8%‐ 0.0%4411PROSECUTION COSTS/FINES28,318 36,112 32,000 34,000 36,000 2,000 6.3% 2,000 5.6%4421EVIDENCE FORFEITURES429 1,359 1,000 1,200 1,200 200 20.0%‐ 0.0% TOTAL233,934 264,917 251,000 251,500 253,500 500 0.2% 2,000 0.8%MISC REVENUES:4610INTEREST ON INVESTMENTS109,277$ 127,423$ 52,000$ 150,000$ 175,000$ 98,000 188.5% 25,000 14.3%4611/12SPEC ASSMT-PRINCIPAL/INT4,076 7,154 3,900 4,500 4,500 600 15.4%‐ 0.0%4615CHANGE IN FMV - INVESTMTS(10,793) 292 ‐ ‐ ‐ ‐ N/A‐ N/A4620ANTENNA LEASES - HOLZ FARM34,000 36,100 38,700 41,000 43,400 2,300 5.9% 2,400 5.5%4624ATHLETIC FIELD RENT72,103 45,700 61,000 61,300 61,300 300 0.5%‐ 0.0%4625PARK SHELTER RENT41,045 43,641 41,000 42,000 43,000 1,000 2.4% 1,000 2.3%4628SWITCHING STATION RENT21,490 22,780 22,000 22,000 22,000 ‐ 0.0%‐ 0.0%4634ATHLETIC FIELD RENT-NON-RESIDENT‐ ‐ ‐ ‐ ‐ ‐ N/A‐ N/A4657SALE OF CITY PROPERTY78 653 ‐ 700 700 700 N/A‐ 0.0%4660LAPEL PINS26 16 ‐ ‐ ‐ ‐ N/A‐ N/A4661HISTORY BOOKS56 173 3,000 3,200 3,200 200 6.7%‐ 0.0%4663CONTRIBUTION/DONATION42,103 34,741 40,900 41,400 38,600 500 1.2% (2,800) ‐7.3%4666HISTORY CARDS35 187 ‐ ‐ ‐ ‐ N/A‐ N/A4691OTHER REVENUE15,156 48,098 10,500 200 200 (10,300) ‐98.1%‐ 0.0% TOTAL328,652 366,958 273,000 366,300 391,900 93,300 34.2% 25,600 6.5%PROGRAM REVENUES:4810PROJ. ADMIN464,605$ 185,489$ 284,400$ 220,100$ 285,600$ (64,300) ‐22.6% 65,500 22.9%4821DRUG TASK FORCE REIMB22,814 20,994 21,400 21,300 21,700 (100) ‐0.5% 400 1.8%4822OTHER REIMBURSEMENTS7,042 11,614 7,000 8,600 8,600 1,600 22.9%‐ 0.0%4831CAPITAL CREDITS18,531 25,058 10,000 17,900 17,900 7,900 79.0%‐ 0.0% TOTAL512,992 243,154 322,800 267,900 333,800 (54,900) ‐17.0% 65,900 19.7%FUND BALANCE‐$ ‐$ ‐$ 375,000$ 210,000$ 375,000 N/A (165,000) ‐78.6%TRANSFERS:CABLE FRANCHISE FEES516,644 580,800 649,900 649,200 648,700 (700) ‐0.1% (500) ‐0.1%UTILITY TRANSFERS1,188,854 1,269,700 1,296,900 1,459,700 1,497,700 162,800 12.6% 38,000 2.5% TOTAL1,705,498 1,850,500 1,946,800 2,108,900 2,146,400 162,100 8.3% 37,500 1.7% GRAND TOTAL31,480,493$ 33,491,004$ 33,667,900$ 36,148,800$ 38,136,600$ 2,480,900 7.4% 1,987,800 5.2% ∆2018 to 2019 % ∆2017 to 2018 %GENERAL FUNDREVENUES BY LINE ITEM
28
2017 2018 2019 Budget Budget $ % Budget $ %GENERAL GOVERNMENT01 Mayor & Council 152,100$ 150,800$ (1,300)$ -0.9% 160,900$ 10,100$ 6.7%02 Administration 584,400 615,100 30,700 5.3% 627,800 12,700 2.1%03 Information Technologies 1,661,600 1,730,600 69,000 4.2% 1,873,100 142,500 8.2%04 City Clerk 274,600 377,500 102,900 37.5% 304,300 (73,200) -19.4%05 Finance 902,300 969,800 67,500 7.5% 986,300 16,500 1.7%06 Legal 405,000 392,400 (12,600) -3.1% 404,900 12,500 3.2%07 Comm Dev--Planning 1,112,900 1,120,900 8,000 0.7% 1,160,600 39,700 3.5%08 Comm Dev--Inspections 1,269,600 1,519,400 249,800 19.7% 1,397,300 (122,100) -8.0%09 Communications 652,400 662,900 10,500 1.6% 653,100 (9,800) -1.5%10 Human Resources 462,500 510,900 48,400 10.5% 597,900 87,000 17.0%Gen Govt Total7,477,400 8,050,300 572,900 7.7% 8,166,200 115,900 1.4%PUBLIC SAFETY 11 Police 13,019,700 13,888,900 869,200 6.7% 14,692,700 803,800 5.8% 12 Fire 2,961,200 3,733,200 772,000 26.1% 4,360,900 627,700 16.8%Public Safety Total15,980,900 17,622,100 1,641,200 10.3% 19,053,600 1,431,500 8.1%PUBLIC WORKS 21 Public Works/Engineering 1,343,100 1,358,500 15,400 1.1% 1,422,700 64,200 4.7% 22 Streets & Highways 1,987,300 2,112,300 125,000 6.3% 2,208,100 95,800 4.5% 24 Central Svces. Maint. 689,400 823,700 134,300 19.5% 892,500 68,800 8.4%Public Works Total4,019,800 4,294,500 274,700 6.8% 4,523,300 228,800 5.3%PARKS & RECREATION30 Recreation 2,195,500 2,342,900 147,400 6.7% 2,419,200 76,300 3.3%31 Parks 2,099,900 2,222,000 122,100 5.8% 2,408,300 186,300 8.4%32 Tree Conservation 618,000 674,500 56,500 9.1% 725,700 51,200 7.6%Parks & Rec Total4,913,400 5,239,400 326,000 6.6% 5,553,200 313,800 6.0%GENL GOVT BLDG MAINT33 Government Buildings 784,000 779,700 (4,300) -0.5% 801,600 21,900 2.8% Subtotal33,175,500 35,986,000 2,810,500 8.5% 38,097,900 2,111,900 5.9%41 Contingency--Undesignated 492,400 162,800 (329,600) -66.9% 38,700 (329,600) -202.5%General Fund Total33,667,900$ 36,148,800$ 2,480,900$ 7.4% 38,136,600$ 1,987,800$ 5.5%DifferenceDifference2018-2019Comparative Summary of ExpendituresGeneral Fund Budget
Meeting PurposeAug 15, 2018 City Council Workshop•2019 General Fund budget and levy:–Review preliminary operating budget–Review proposed property 2019 tax levy–Provide direction to staff
Executive Summary•2019–General Fund Budget increase of 5.5% –Levy increase by 5.82%–Market Value increase by 9.7%–Average household market value increase from $276,699 to $300,093–City’s tax capacity rate decrease from .36378 to .35114–City taxes on Average Market Value House $1,055 or increase 5.6%
•2019 (Cont.)–$ 929,700 thousand in additional staff•Phase #2 of the Fire Staffing Study (6 Firefighters)•2 Police Officers•Park MaintenanceExecutive Summary (cont.)
1,832 1,693 1,609 1,428 1,351 1,173 1,172 1,151 1,116 1,114 1,083 1,082 999 993 916916 921 885 722 ‐ 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000West St. PaulSouth St. PaulHastingsBrooklyn ParkInver Grove HeightsApple Valley18‐City AverageBurnsvilleCoon RapidsBloomingtonRosemountMendota HeightsEaganMinnetonkaMaple GroveLakevilleWoodburyEden PrairiePlymouthCity Portion of Property Taxes2018 Final Taxes$276,699 Homestead (Eagan avg.)
Slide 6Property Taxes76.7%Other 23.3%Property Taxes76.7%Other 23.3%Property Taxes76.7%Other 23.3%Property Taxes76.7%Other 23.3%Property Taxes76.1%Other 23.9%
Expenditure Summary by Major Classifications($ in 000s)2018 2019Δ% of total % of totalPersonal Services$27,61076.4%29,58077.6%$1,970Parts and Supplies1,8455.1%1,9495.1%104Services & Other Charges6,27117.3%6,32216.6%51Capital Outlay2600.7%2470.6%(13)Contingency1630.5%390.1%(124)TOTAL $36,149100%$38,137100%$1,9885.5%Slide 7
Other25.1%Other25.1%Other26.0%Other25.9%Other25.7%Slide 8
Slide 8
General Fund Personnel Summary 2018‐192018 2019Budget Proposed BudgetProposed AdditionsFTE FTEPolice Officers ‐20183.00 $ 318,300 ‐$ ‐Police Officers ‐2019‐-2.0 221,700 Fire Captains – 20184.00 487,200 ‐‐Fire Fighters – 20182.00200,000 ‐‐Fire Fighters – 2019‐‐6.00 611,500 Parks Maintenance Worker1.0083,2001.0086,500GIS Technician1.0050,400‐‐Equipment Maintenance Worker1.00 78,300 ‐‐12.00 1,217,200 9.00 919,700 Proposed AdjustmentsStreets Foreman‐-‐10,000Part‐time Clerical Support.2521,300‐-PT GIS/Office Support0.1258,100‐-Property Room Tech0.50 38,500 ‐‐0.875 67,900 ‐10,000 Total Personnel Impact 12.875 1,285,3009.00 929,700
Comparison of Market Value and Tax Capacity($ in 000s)Final 2018 Payable Prelim. 2019 PayableChange in $ Change in %Market Value $8,047,243 $8,831,377 $784,1339.7%Gross Tax Capacity 100,777 110,519 9,7429.7%Fiscal Disparity (13,542) (14,345) (803) (5.9)%TIF (3,374)(3,752)(378)(11.2)%Net Local Tax Capacity83,861 92,422 8,56110.2%
Comparison of Tax Capacity Levy & Tax Capacity Rates($ in 000s)Final 2018 Prelim. 2019Δin $Δin %Total Tax Capacity Levy$33,597 $35,629 $2,032 6.0%FD Distribution (3,090)(3,177)(87)2.8%Net Local Levy 30,507 32,452 1,946 6.4%Tax Cap Rate‐City 30,50783,86132,45292,4220.36378 0.35114 (0.01264)‐3.5%
Eagan Property Tax History: City Taxes Only2015201620172018Projected2019Tax Capacity Rate0.36525 0.37097 0.37361 0.37378 0.35114Market Value Rate0.0001564 0.0001490 0.0001447 0.0001359 0.0001233Market Value$ 150,000 485 491 494 494 480 162,682 513 200,000 692 700 704 704 686 216,909 729 276,699 Pay 2018 Average Eagan House Mkt Value 999300,093 Pay 2019 Average Eagan House Mkt Value 1,055300,000 1,105 1,120 1,126 1,095 1,054 325,364 1,155 400,000 1,519 1,539 1,548 1,505 1,450 433,819 1,577
Public Policy Issues•Is the General Fund budget increases of 5.5% in 2019 acceptable?•The tax levy is propsosed to increase by 5.2% in 2019. Is that acceptable? If not, is there a target number to work toward?•Are there concerns or objections to any proposed staffing changes you would like to see changed or additional information?
Public Policy Issues (cont.)•$210,000 contingency from 2017 that has been allocated to implement the compensation study:–Is the City Council comfortable with the transfer in 2019 to implement compensation study results?•Additional questions or issues?