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07/27/2010 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING TUESDAY JULY 27, 2010 5:30 P.M. EAGAN ROOM—EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD f. 1 III. STORM WATER UTILITY FEE "EQUITY ADJUSTMENT FACTOR" P. 3 IV. JOINT MEETING WITH THE AIRPORT RELATIONS COMMISSION • REVIEW PROPOSED 2010-2011 COMMISSION WORK PLAN t0 V. 2011 CIVIC ARENA BUDGET e/60 VI. 2011 GENERAL FUND BUDGET UPDATE VII. OTHER BUSINESS VIII. ADJOURNMENT Special Council Workshop Agenda Memo July 27, 2010 III. STORM WATER UTILITY FEE & EQUITY ADJUSTMENT FACTOR DIRECTION TO BE CONSIDERED: To receive an update by City staff regarding the proposed Equity Adjustment Factor to the Storm Water Utility Fee and provide City staff with comments and direction in regards to its implementation. FACTS: BACKGROUND • On April 3, 1990, the City Council adopted a Comprehensive Water Quality Management Plan. Concurrently, the Council also established a Storm Water Utility Fee to finance the program. • On the 20th anniversary of the City's Water Quality Program, it is appropriate to review this current funding source and its ability to continue to adequately and equitably fund the program, especially with state and federal mandates that have evolved since the program's inception (i.e. Clean Water Act, National Pollutant Discharge Elimination System — NPDES; Municipal Separate Storm Sewer System — MS4; Non -Degradation Requirements; etc.). • In 2009, the City Council authorized a detailed analysis of all Utility User Rates. As part of the review of the Storm Water Utility Fee, an evaluation was performed to determine if some type of "pollutant loading surcharge" would be appropriate or necessary based on increasing Clean Water Act mandates. The analysis indicated that the current rate and structure, with some annual cost of living adjustments, was adequate to maintain the program for the foreseeable future. Eagan's Storm Water Utility Rate continues to rank in the lowest quartile in the metro area. • The originally established Residential Equivalent Factor (REF) continues to be used as the basis for determining the Storm Water Utility Fee for all land use classifications of property within the City. The REF equates the surface water runoff from the various land uses to a typical single-family residential property. This has shown to be a fair and equitable means of allocating the costs of the program on a stormwater runoff volume - weighted basis and adequately accounts for pollutant loading differentials. • However, this detailed analysis also revealed that an economic disparity has evolved over the years between the different classes of land uses when comparing the volume of runoff generated to their respective utility fee contributions. This has identified the need to look at a possible Equity Adjustment Factor (EAF) to be applied to all land uses to insure that each type continues to pay its proportionate fair share based on their runoff volume impacts. • At the May 11, 2010 Council workshop, the staff made a presentation to the Council that showed the land use changes that have occurred within the City over the past 20 years, and the resultant disparity that has grown between land uses. The proposed Equity Adjustment Factor (EAF) takes into consideration the proportionate amount of runoff between the various land uses. Special Council Workshop Agenda Memo July 27, 2010 Page 2 of 2 CURRENT ISSUE • During the Council's discussion, it was noted that 25.2% of all Stormwater Runoff Impacts come from Parkland, Rights-of-way and Vacant land (PRV) that is not billable. Subsequently, the remaining 74.8% of land uses proportionately share in funding 100% of the cost of the Storm Water Management Program based on their weighted runoff volume. Currently, there are 19,294 Storm Water Utility Fee billing accounts proportionately financing this $2 million per year program. 95% of them (18,376) are low and medium density residential properties. • While the Council's discussion tendered support for the concept of this EAF, a request was made to evaluate the impact of having the PRV runoff impact shared equally by all billing accounts (similar to Streetlights) instead of proportionately by land use impact. The Council requested that the additional information be brought back to a future workshop for further consideration. • If the Equity Adjustment Factor was adopted and applied, it would have the effect of reducing the Low and Medium Density residential rates while increasing all other land use rates to more accurately reflect their respective financial obligation compared to their impact on the storm drainage and water quality system. • If the Parkland, Rights of way and Vacant (PRV) land uses were allocated equally on a per account basis (rather than runoff impact), it would increase the Low and High Density Residential rates and lower all other land use rates. • Staff will be available to further explain the relationship between land uses and financial obligations to help the Council in their policy deliberations. ATTACHMENTS • Pie chart, Storm Water Impacts vs. Revenue, • Storm Water Fee Comparison with Equity number. • Storm Water Fee Comparison with EAF and page number. attached without page number. Adjustment Factor, attached without page Right of Way adjustments, attached without Agenda Information Memo July 27, 2010 Special City Council Meeting IV. JOINT MEETING WITH THE AIRPORT RELATIONS COMMISSION • REVIEW PROPOSED 2010-2011 COMMISSION WORK PLAN ACTION TO BE CONSIDERED: To approve the 2010-2011 Airport Relations Commission Work Plan. FACTS: • It is the City Council's practice to meet with each of their advisory commissions at least one time each year. • The Airport Relations Commission (ARC) is prepared to dialogue with the Council about their proposed 2010-2011 ARC Works Program. • Chuck Thorkildson, Chair of the ARC, will be present to provide an overview of the proposed work plan. • This is also an opportunity for the Council to dialogue with the ARC about any other airport issues facing the community. ATTACHMENTS: • Enclosed on pages 4 andS is the proposed 2010-2011 ARC Work Program. 3 1,111 City of Eagan 2010-2011 Eagan Airport Relations Commission (ARC) Work Plan Work Plan Topic Presenters Schedule (tentative) 1. Review 2010-2011 Work Plan with Eagan City Council July 27, 2010 Special City Council Workshop (at approx. 6 p.m.) 2. Environment • Build on April 2010 MAC presentation regarding wildlife mitigation • Invite MAC's Environment Mgr to address water quality, air pollution, deicing impacts, fuel dumping, etc. • Address new Federal mandates pertaining to the removal of migratory birds at airports • Discuss impact of performance based navigation— balance between noise mitigation and environmental impact to river basin wildlife, water, and air • Invite Energy and Environment Advisory Commission to hear presentation and discuss joint efforts between the commissions Roy Fuhrmann, MAC Director of Environment Energy and Environment Advisory Commission members July 13, 2010 ARC meeting (7 p.m.) 3. Intergovernmental • Dialogue with Eagan Legislators and MAC Commissioner Bert McKasy about airport issues facing the community—future MSP expansion/operations, forecasted noise contours, funding for future noise mitigation, etc. • Economic health of MSP—changes occurring at MSP (long term plan proposals, future expansion needs, Southwest impact, etc.) • Role of Legislators in seeking funding for mitigation and promoting modernization of MSP operations (Next Gen initiatives) Eagan Legislative Delegation Bert McKasy, MAC Commissioner Chad Leqve, MAC Manager, Noise Office September 14, 2010 ARC meeting 4. Town Hall Meeting • Hold ARC town hall meeting in a specific neighborhood (at neighborhood church or school) to continue success of 2010 town hall format—send postcards to residents in area inviting them to the meeting • Invite City Councilmembers to be present to give opening statement/welcome regarding efforts taken by the City to combat airport noise and tell story of economic impact of MSP to Eagan • Provide electronic survey option on invitation (and hard copies at open house) to gauge impact of aircraft noise on the neighborhood • Invite Chad Leqve to provide update on Next Gen initiatives, new MAC website capabilities, long term plan impact, and forecasted operations (and impact on specific neighborhood) • Invite MAC Commissioner Bert McKasy to give update on MSP, including merger impacts, Southwest presence, operation projections, etc. d Chad Leqve, MAC Bert McKasy, MAC Commissioner Eagan City Councilmember(s) November 23 or 30, 2010 ARC meeting (off site—location and specific date TBD) *hold on a non -Council meeting Tuesday to allow Council participation if they so choose 5. Business/Economic Development • Invite panel of experts to discuss the impact of MSP on the business and hospitality community in Eagan • Discuss the impact of the Long Term Comprehensive Plan and Delta/Northwest merger • Invite Brent Corey, Executive Director of the Eagan CVB, to highlight impact of MSP on Eagan hotels, restaurants, etc. • Invite airline representatives to share their feedback on the state of the airline industry presently, and predictions for the future Ruthe Batulis, Executive Director of DCR Chamber Brent Corey, Executive Director of the Eagan CVB Mary Loeffelholz, Regional Director of Delta Airlines January 11, 2011 ARC meeting 6. Noise Monitoring and Communication • Monthly review of MAC technical reports, including Corridor compliance • Ongoing discussion about communication initiatives via Experience Eagan, City website, and cable TV Review at monthly ARC meetings 7. Showcase Eagan • Have ARC table/booth to highlight the City's relationship with MSP, including resources regarding airport noise and communication about the economic impact of MSP on Eagan. 2011—Date TBD 8. Future ARC Items • In 2011-2012, hold joint meetings with the Mendota Heights' ARC and Inver Grove Heights' ARC • Participate in a future aviation disaster exercise put on by the MAC in conjunction with surrounding cities and agencies TBD Agenda Information Memo July 27, 2010 Eagan Special City Council Meeting V. 2011 CIVIC ARENA BUDGET ACTIONS TO BE CONSIDERED: 1) To provide direction to staff regarding the proposed 2011 Civic Arena budget 2) To direct that the budget be placed on a future City Council meeting consent agenda for formal ratification FACTS: • By tradition, the Civic Arena budget is presented in advance of other 2010 budgets as operations are run on a fiscal year beginning September 1 to match the seasonal nature of ice rental. • As presented, the budget is balanced. It provides for an appropriate amount of renewal and replacement funds as well as annual debt service. The geothermal/ energy enhancement project will significantly impact several line items as outlined in the Overview/Highlights section of the budget book format pages. • The Civic Arena is supported entirely by user fees; operations are not subsidized by property taxes or other revenue sources. • The proposed budget is based on a $5 increase in the prime -time rates; the 2011 hourly rate for the hockey associations, figure skating, and general users will be $180; the rate for ISD 196 will be $185. • The non -prime -time rate is proposed to remain at last year's level of $112/hour. • Any modifications to reuse the rink space around the downsized ice sheet in the west arena are not included in the proposed 2011 budget. • The following staff members were involved in reviewing the proposed rates, revenue estimates, and expenditure requests: City Administrator Hedges, Director of Parks & Recreation Seydell Johnson, Director of Administrative Services VanOverbeke, Superintendent of Operations Mesko, Campus Facilities Manager Vaughan, and Chief Financial Officer Pepper. ATTACHMENTS: • Budget information presented in budget book format is on pages / through • A comparison of ice rental rates of neighboring cities is on page • A brief summary of capital expenditures is on page I LI' . • An analysis showing operational and capital expenditures and related cash balances is on page S— . (of City or Eap 2011 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation 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 2008 2009 2010 2011 Description Actual Actual Estimate Target Participants in skate school program 1,759 1,750 1,750 1,750 Summer hockey rental hours (June 15 -Aug 31) 956 1,000 950 950 Adult league team registrations 62 40 55 55 Dry floor events 5 5 5 5 Prime ice rental hours (Oct 15 - March 15) 3,170 3,100 3,100 3,100 7 City of Eaoaa 2011 Proposed Budget Operating Budget Reserve for Renewal & Replace. 6% Expenditure by Category Debt Service 19% 4% apital Outlay 1% Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation Parts and Supplies 5% Services and Other Charges 17% HIGHLIGHTS & CHANGES Overview: The 2011 proposed budget is up $16,200, or 1.7%, from 2010. The majority of the changes reflect the impact of the geothermal and energy enhancement project completed in 2010. The energy and operational costs savings are reflected in the projected expenses as is the new debt service payment to pay for the project. Highlight/Change 1: Salaries and wages have increased to reflect the hiring of a full-time skate school coordinator in 2010 coupled with the increase in health insurance costs. Financial Impact: $12,000 increase in staff Service Level Impact: The skate school will be able to grow again with the attention of a full-time coordinator to provide the personalized service to participants and instructors. Highlight/Change 2: Electric and gas costs have been reduced to reflect the guaranteed energy savings of $103,800 from the geothermal and energy enhancement project completed in 2010. The proposed increases ($11,300) in both utilities were considered before reducing the budget by $103,800. Financial Impact: $92,500 net decrease from 2010 Service Level Impact: No impact to service — increased awareness of energy efficiency. Highlight/Change 3: Other contractual services have been reduced to reflect the guaranteed operational savings of $25,400 which reflects the equipment that is no longer in the building that would normally require care and service. Financial Impact: $15,500 net decrease from 2010 Service Level Impact: Will increase the care and service of remaining equipment in the building to ensure full operation of building for users. Highlight/Change 4: Maintenance contracts have increased to add the Harris Services contract. Harris will monitor and service all equipment in the Arena and replace any of the equipment installed as part of the geothermal project during the term of the maintenance contract. This contract is renewable annually and provides the system monitoring to guarantee the 2011 and future guaranteed savings. Financial Impact: $30,600 net increase from 2010 Service Level Impact: Will increase the care and service of remaining equipment in the building to ensure full operation of building for users. Highlight/Change 5: Debt service payment structure is changed to allow for payback of the cost share of the geothermal/energy enhancements and replacement of the west arena floor. Financial Impact: $55,500 increase to debt service. Service Level Impact: Building enhancements have allowed for significant energy savings as well as a new floor that will provide an uninterrupted ice surface for users. Highlight/Change 6: Renewal and replacement structure is changed to incorporate larger capital expenditures not previously covered in renewal and replacement (e.g., dasher boards and roof replacement) Financial Impact: $23,600 increase to renewal and replacement. Service Level Impact: This will ensure the timely replacement of larger capital expenditures when their life cycle has ended. City of Cap 2011 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation EXPENDITURE SUMMARY Proposed Actual Actual Budget Budget Expenditure 2008 2009 2010 2011 Personal Services $ 397,836 $ 444,986 $ 440,100 $ 453,400 Parts and Supplies 55,986 54,888 52,100 50,800 Services and Other Charges 245,323 243,803 235,900 159,600 Capital Outlay 13,266 17,300 10,000 10,000 Merchandise for Resale 36,232 36,886 31,500 33,000 Debt Service 122,843 124,168 126,700 182,100 Reserve for Renewal & Replacement - - 36,000 59,600 Total $ 871,486 $ 922,031 $ 932,300 $ 948,500 Depreciation Expense $ 224,204 $ 220,159 POSITION INVENTORY - CIVIC ARENA Personnel 2008 2009 2010 2011 Hours Campus Facilities Manager 0.67 0.67 0.67 0.67 1,394 Campus Facilities Operations Coordinator 0.33 0.33 0.33 0.33 686 Campus Facilities Maintenance Coordinator 0.5 0.5 0.5 0.5 1,040 Custodian 0.5 0.5 0.5 0.5 1,040 Manager on Duty 0.67 0.67 0.67 0.67 1,394 Clerical Technician 0.2 0.2 0.2 0.2 416 Skating School Coordinator 1 1 1 1 2,080 Total 3.87 3.87 3.87 3.87 8,050 POSITION INVENTORY -CASCADE BAY Personnel 2008 2009 2010 2011 Hours Campus Facilities Manager 0.33 0.33 0.33 0.33 686 Campus Facilities Operations Coordinator 0.67 0.67 0.67 0.67 1,394 Campus Facilities Maintenance Coordinator 0.5 0.5 0.5 0.5 1,040 Custodian 0.5 0.5 0.5 0.5 1,040 Manager on Duty 0.33 0.33 0.33 0.33 686 Clerical Technician 0.4 0.4 0.4 0.4 832 TOTAL 2.73 2.73 2.73 2.73 5,678 2011 WORK PLAN Activity Routine 1 Respond to public comments or requests via phone or in person 2 Daily maintenance of ice and cleaning of building 3 Manage the building infrastructure to ensure efficient, safe and clean environment 4 Develop promotional materials for facility 5 Recruit, hire, train and supervise temporary and part time employees 6 Provide work direction to ensure high level of customer service is maintained 7 Manage staff scheduling and training to meet the demands of the building 8 Provide support to the day-to-day concessions oeration 9 Establish and manage skate school program and auxilliary events 10 Provide input and directions pertaining to policies, budget and general operation of CA 11 Develop and manage capital improvements and long range planning 12 Develop and manage policies & procedures that best meet the needs of the community City of Cap 2011 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation REVENUE SUMMARY Actual Actual Budget Budget Acct REVENUES 2008 2009 2010 2011 4304 OTHER REVENUE $ $ - $ $ 4305 EQUIPMENT RENTAL 7,714 7,862 7,000 7,500 4310 PARK PROGRAM REVENUE NON -TAX 122,545 109,883 119,600 120,000 4311 PARK PROGRAM REVENUE 122,273 117,812 127,300 118,700 4312 CONCESSION SALES 52,860 55,080 70,000 68,000 4314 MERCHANDISE SALES 10,195 5,255 9,500 5,500 4320 MARKETING REVENUE 12,041 16,937 17,000 19,000 4322 VENDING (CITY OWNED) 5,458 11,490 10,000 12,000 4323 VENDING (VENDORS) 6,055 6,081 4,000 6,000 4324 ROOM RENTAL 38 726 2,000 3,600 4325 ROOM RENTAL NON -TAX 1,950 3,000 3,000 4326 FACILITY/ICE RENTAL 133,256 125,287 129,800 132,000 4327 FACILITY RENTAL NON -TAX 447,358 429,353 433,100 453,200 4328 CONTRACT REVENUE TOTAL CIVIC ARENA REVENUES $ 919,793 $ 887,716 $ 932,300 $ 948,500 1D '6, � City of kali 2011 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation EXPENDITURES DETAIL Actual Actual Budget Budget Acct PERSONAL SERVICES 2008 2009 2010 2011 6110 SALARIES AND WAGES -REGULAR $ 154,509 $ 196,845 $ 195,000 $ 198,900 6112 OVERTIME --REGULAR 368 104 800 500 6130 SALARI ES AND WAGES -TEMPORARY 167,868 160,663 158,000 160,000 6131 OVERTIME -TEMPORARY - 16 - 6142 PERA-COORDINATED 16,865 19,512 13,700 14,500 6144 FICA 23,876 25,509 27,100 27,500 6151 HEALTH INSURANCE 26,488 34,097 37,900 43,600 6152 LIFE INSURANCE 353 364 - 6154 DISABILITY- LONG TERM 595 652 - 6155 WORKERS COMPENSATION 6,915 7,226 7,600 8,200 6157 RETIREE HEALTH INSURANCE - 200 TOTAL PERSONAL SERVICES 397,836 444,986 440,100 453,400 PARTS & SUPPLIES 6210 OFFICE SUPPLIES 789 412 800 800 6211 OFFICE PRINTED MATERIAL/FORMS 35 100 100 6220 OPERATING SUPPLIES -GENERAL 18,453 21,377 18,000 16,400 6222 MEDICAL/RESCUE/SAFETY SUP PLI ES 537 100 700 700 6223 BUILDING/CLEANING SUPPLIES 6,839 6,017 5,000 6,500 6224 CLOTHING/PERSONAL EQUIPMENT 997 339 1,000 900 6230 REPAIR/MAINTENANCESUPP-GENL 18,779 16,327 16,000 16,900 6233 BUILDING REPAIR SUPPLIES 4,437 5,325 5,000 5,000 6235 FUEL, LUBRICANTS, ADDITIVES 15 - 100 100 6240 SMALL TOOLS 4 280 400 400 6241 SHOP MATERIALS 541 279 500 500 6244 CHEMICALS & CHEMICAL PRODUCTS 4,560 4,432 4,500 2,500 TOTAL PARTS & SUPPLIES 55,986 54,888 52,100 50,800 SERVICES & OTHER CHARGES 6310 PROFESSIONAL SERVICES -GENERAL 80 200 100 6314 AUDITING 900 700 800 6327 SPORTING EVENT OFFICIALS 45 - 6346 POSTAGE 306 182 500 6347 TELEPHONE SERVICE & LINE CHG 1,922 1,449 1,500 6348 MATRIX SERVICE & REPAIR - - 300 6353 PERSONALAUTO/PARKING 247 248 300 6355 CELLULAR TELEPHONE SERVICE 173 496 800 6357 GENERAL ADVERTISING 4,054 6,982 6,000 6370 GENERAL PRI NTI NG AND BINDING 1,793 1,542 1,600 6385 INSURANCE 6,300 7,800 7,800 6405 ELECTRICITY 85,849 103,457 82,500 6410 NATURAL GAS SERVICE 91,641 68,570 90,000 6457 MACHINERY AND EQUIPMENT 4,384 1,976 1,500 11 100 800 500 1,500 300 300 800 6,000 1,600 7,800 65,000 15,000 3,000 City of Cada 2011 Proposed Budget Operating Budget Civic Arena Responsible Manager: Juli Johnson, Director of Parks & Recreation EXPENDITURES DETAIL (CONT'D) Actual Actual Budget Budget 2008 2009 2010 2011 6475 MISCELLANEOUS $ - $ - $ $ 600 6476 CONFERENCES AND SCHOOLS 1,947 1,420 1,000 1,000 6477 LOCAL MEETING EXPENSES 70 (49) 100 100 6479 DUES AND SUBSCRIPTIONS 1,679 680 700 700 6480 LICENSES, PERMITS AND TAXES 4,179 433 400 400 6482 AWARDS, JUDGEMENTS, AND LOSSES - - 6487 VISA/MC BANK CHARGES 3,805 4,018 6,000 5,000 6535 OTHER CONTRACTUAL SERVICES 24,787 30,005 21,500 6,000 6539 WASTE REMOVAL/SANITATION SERV 2,847 3,204 3,000 3,000 6569 MAINTENANCE CONTRACTS 8,316 10,491 9,500 40,100 SERVICES AND OTHER CHARGES 245,323 243,803 235,900 159,600 CAPITAL OUTLAY 6640 MACHINERY/EQUIPMENT - 6660 OFFICE FURNISHINGS & EQUIPMENT 400 2,384 6670 OTHER EQUIPMENT 12,866 14,917 CAPITAL OUTLAY 13,266 17,300 MERCHANDISE FOR RESALE 6855 MERCHANDISE FOR RESALE 36,232 36,886 31,500 33,000 MERCHANDISE FOR RESALE 36,232 36,886 31,500 33,000 DEBT SERVICE 6491 INTEREST 57,412 53,737 51,700 85,000 PRINCIPAL 65,000 70,000 75,000 97,100 6492 PAYING AGENT/BOND DESTRCTN FEE 431 431 - - TOTAL DEBT SERVICE 122,843 124,168 126,700 182,100 CAPITAL EQUIPMENT ALLOCATION RESERVE FOR RENEWAL & REPLACEMENT TOTAL CIVIC ARENA 10,000 10,000 36,000 59,600 46,000 69,600 $ 871,486 $ 922,031 $ 932,300 $ 948,500 1.74% 6488 DEPRECIATION & AMORTIZATION EXPENSE $ 224,204 $ 220,159 $ $ la Proposed 2010-11 Hourly Rates Rates not approved as of 7-20-10 Ice Rental Rates Burnsville Lakeville St. Thomas Ice Arena Farmington South St. Paul Apple Valley Inver Grove Heights Rosemount Prime Time 210 /hr 205 205 200 195 190 190 185 Non -Prime Time 165 /hr negotiable 130 150 155 130 145 125 Eagan 180 * 112 Richfield 180 *Includes hockey associations and figure skating ISD 196 rates = $185/hr Full floor 145 Turf/Dry floor rental Turf Concrete 75 /hr 40 /hr Half floor 40 Less than 24 hr notice 90 Proposed Proposed Proposed Note: Eagan's rates for non -prime ($112), turf ($75) and dry floor ($40) have not changed in the past 6 years. Resident Non-resident Clean-up fee* 125 flat fee for outside F&B Mezzanine Rental 21 /hr 31 13 Proposed Civic Arena 2011 Budget — Capital Expenditures Renewal & Replacement (R&R) capital expenditures No items on the R&R list are scheduled for replacement in 2011. If existing equipment unexpectedly breaks and cannot be repaired, purchase of replacement items will be considered at that time. With the new equipment purchased in connection with the geothermal project, additional funds are being set aside annually for R&R. The allocation increased from $36,000 in 2010 to $59,600 in 2011. Other capital expenditures Two capital outlay expenditures are proposed: • $7,500 Replace gas -powered ice edger with electric ice edger to ensure compliance with impending air quality legislation. This is the only gas -powered equipment in the Civic Arena. • $1,800 Replace three PCs, per the IT department's replacement schedule. Note that beginning with the 2005 budget, $10,000 has been allocated annually for capital purchases. In some years, actual capital expenditures are slightly more than $10,000, and in some years capital expenditures are less than that. Civic Arena cash flow - for 2011 Budget -C 0 0 0 CD Lf) CO C`. - a• r N C (O r N O 0) C0 N a. EH O O O co O co CO N- o N O M Ln N- Z; C N m 6R 0LO CO 01 N- CD O O 0) p CO 0) N co f- 69 CO CO (O 0) CO U') r 0 CO O 0) N- N Cash revenues CO co 0) NO 0 N ' 10 r- 0 0 (0 M MO Avail cash from operat-not reserved Carryforward from prior year 15 Cumulative opns cash N ti CO N CO Reserved cash balances: N co O O O r0 Ln (O N Lf) CCOO 00) M CO- r N LO M N 0) O O N 10 N O CO CO O CO N N M 03 Icr ER N A- ER N O O ER O N O If; O N ER Total cash bal per financial statements 0 CO ✓ r Ln O co ✓ r Lf) CO EHA Prime ice time hourly rate: Agenda Information Memo July 27, 2010, Special Eagan City Council Meeting VI. RECEIVE UPDATE ON 2011 GENERAL FUND BUDGET ACTION TO BE CONSIDERED: This is an information/discussion item and no specific action is required. FACTS: • Since late April, staff has been working on the 2011 budget. Individual department budget proposals have been prepared, the Budget Team has met with each department director and their support staff, and the Finance Department has prepared revenue projections and begun work on the potential tax levy amount and allocation. • The City Council has previously reviewed and discussed numerous budget issues with policy implications for the budget and tax levy. The status of those issues can generally be broken down into the following two categories: 1. Currently incorporated into the 2011 preliminary budget: ➢ The need for budgets to be practicable in the short-term while sustainable for the long-term. ➢ Non -personnel cost increases be limited to 2%. Primarily due to budget size and circumstances, certain departments cannot realistically meet this objective; however, it is met in total across all departments. ➢ Increases to PERA contribution rates (State mandate) and potentially to health insurance costs. ➢ Implementation of Normal Costs for post retirement health insurance. ➢ Contract negotiations — Step adjustments and benefit changes are incorporated; however, there are no other compensation increases and no new personnel included in the proposed budget. ➢ Organizational and departmental rightsizing — The elimination of the Superintendent of Streets position and other related organizational restructuring is included in the proposed budget totals. Staff continues to work on organizational and departmental rightsizing on an on-going basis. ��P 2. To be incorporated into subsequent work on tax levy amount and allocation: ➢ The City's declining tax base. ➢ Levy limits, loss of Market Value Homestead Credit and special levies. ➢ The impact on tax capacity and cash flow resulting from tax court challenges to estimated property values (primarily commercial / industrial). ➢ Developing a proper balance between resources dedicated to operations and to infrastructure and equipment; potential reallocation of costs and/or tax revenues. • Potential levy for Fire Safety Center construction (likely a 2012 consideration). ➢ A new levy for the Park Site Acquisition & Development Fund (likely a 2012 consideration). • For comparative purposes, the following table illustrates the preliminary 2011 Budget as compared to the 2010 Budget, the 2009 Revised Budget and the 2009 Original Budget: 2009 Original Budget 2009 Revised Budget 2010 Approved Budget $ 27,729,200 $ 27,137,200 $ 27,537,100 2011 Preliminary Budget 2010 to 2011 Percent Increase $ 27,842,000 1.1% All shown with a contingency account that varies slightly by year. • The 2011 Proposed Budget reflects the transfer of $106,900 in costs related to the City's Pavement Management Program to the Major Street Fund as recommended by the Finance Committee in its meeting of June 30. These costs are being considered part of the infrastructure improvement program and combined with the subsequent overlays, etc to be financed by the Major Street Fund. The Finance Committee also recommended that the same amount of the tax levy be transferred to the Major Street Fund; consequently, no new dollars are introduced to the General Fund. Also, the 2011 Budget does not include dollars for election costs which totaled $67,800 in the 2010 Budget. If those two amounts were included in the 2011 Budget, the increase would be 1.7%. • Unless the City Council directs changes to the parameters outlined above, the proposed 2011 total is unlikely to change; however, individual department totals continue to be revised as work continues on the City Administrator's Proposed 2011 Budget for presentation in August. /7 • Non -tax revenues for 2011 are projected to increase by approximately $200,000 over the estimates for 2010. Staff is estimating the non -tax revenues on a conservative basis; especially the line items that are development related to prevent an unfavorable variance and to reduce building up a reliance that cannot be met in 2012 and beyond. • While it will remain an area of concern, depending on the economy and other unknowns, it appears at this time that the 2010 Budget is sound and no significant adjustments will be necessary. On the revenue side certain accounts will be over and others will be under, but in total staff expects to meet the revenue projections and perhaps produce a favorable variance. On the expenditure side staff is confident at this point that expenditures will be at or below the appropriations, also creating a favorable variance. • Staff will continue to develop the public policy questions for City Council deliberation at subsequent meetings. • Next steps in the budgeting process include the following: ➢ The City Administrator's recommended budget is scheduled to be presented to the City Council for formal and detailed review at the August 9 Special City Council Meeting. ➢ City Council approves the preliminary levy at the regular meeting on September 7 or at a special meeting on September 14. ➢ The preliminary levy is certified to Dakota County on September 15. ➢ City Administrator's Enterprise Fund and ECVB budgets are tentatively scheduled to be presented to the City Council on October 12. ➢ A Truth -in -Taxation hearing will be held in early December. ➢ In mid-December the final 2011 Budget and levy will be adopted by Council. Note: As a public policy consideration, the Council may elect to conduct budget open house(s) sometime in the fall. ATTACHMENTS: (None) Reference: Eagan Utility Billing Summary # Accts. Ave. REF 2010 Rate * 2010 Rate @ • Lb Residential 15,144 • Mb Residential 3,232 • Hb Residential 214 • Office/Retail/BP 642 • Quasi P/Instit 62 1.0 16 73 20.0 31.1 $8.46 $6.77 $8.46 $8.46 $8.46 $7.s5 $4.87 $11.01 $9.31 $10.72 Quarterly Scenario Stormwater Fee Per Average Account • Lb Residential $8.46 • Mb Residential $10.83 • HD Residential $61.76 • Office/Retail/BP $169.20 • Quasi P/Instit $263.11 $7.85 @ $7.79 @ $80.37 @ $186.20 0 $333.39 @ * 2010 Rate (Increased 4.3%) Approved 3-16-10 ustmentFactor" lied Differ. -$0.61 -$3.04 +$18.61 +$17.00 +$70.28 Quarterly Scenario Stormwater Fee Per Average Account Lb Residential $8.46 * $7.85 Mb Residential $10.83 * $7.79 HD Residential $61.76 * $80.3 Office/Retail/BP $169.20 * $1862O • Quasi P/Instit $263.11 * $33339 * 2010 Rate (Increased 4.3%) Approved 3-16-10 @ "Equity Adjustment Factor" Applied • Lb Residential '• MD Residential • Hb Residential • Office/Retail/BP • Quasi P/Instit Summary Accts. Ave. REF Rate * 15,144 3,232 214 642 62 1.0 1.6 7.3 20.0 31.1 $8.46 $6.77 $8.46 $8.46 $8.46 S . " '