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Home My WebLink About11-25-2013 Council Work Session Packet Orono City Council Work Session _ Monday, November 25, 2013, 5:30 p.m. Orono City Council Chambers AGENDA l. Ice Skating Rink at Crystal Bay Park (10 Minutes) 2. 2014 Enterprise Fund Budgets (10 Minutes) 3. Utility Rates (15 Minutes) 4. Retirement Proposal (15 Minutes) 5. Employee Compensation (15 Minutes) 6. Park Commission (5 minutes) 7. Comments Regarding Information Updates Previous Work Session Topics September 23, 2013 o Garage Addition and Police Chie�s Update o Human Services Budget o Comments Regarding Information Updates October 28, 2013 o Capital Improvement Plan (CIP) Update o CSAH 112 —Options o Rest Point Road Update o Employee Compensation o Comments Regarding Information Updates L.J MEMORANDUM TO: ORONO CITY COUNCIL FROM: JESSICr� LOFTUS, CITY ADMINISTRr�TOR SUBJECT: ICE SI�TING RINK AT CRYSTr�L Br�Y P�RK DATE: NOVE�IBER 25, 2013 Councilmember Printup requested time at this work session to discuss skating rinks and in particular a new rink at Crystal Bay Park. He requests staff monitor/observe the current rink usage at Casco and Hackberry this winter and would also like to explore the idea of developing a daytime, neighborhood style, rink at Crystal Bay Park. � TO: Mayor McMillan and Council Members FROM: Ron Olson, Finance Director DATE: November 25, 2013 SUBJECT: 2014 Enterprise Fund Budgets Attachments: 1. Enterprise Funds Summary 2. Enterprise Fund 2014 Line Items The enterprise fund budgets consist of the Water, Sewer, Stormwater,Recycling and Cable TV Funds. Unlike the General Fund,the accounting in the enterprise funds is similar to the accounting practices of private enterprise. The goal of the enterprise funds is to operate at a profit. 2012 was the first year that a formal budget was adopted for the enterprise funds. Prior to 2010, the enterprise funds did not attempt to cover depreciation expenses. Beginning with the completion of the 2009 rate study, the suggested rate increases were designed to cover depreciation. Water Fund The water fund has historically been operating at a loss. In 2012 however, a very dry summer resulted in a higher than average level of water consumption and the fund operated at a profit. For 2013 the fund is expected finish the year with an operating loss. Because depreciation is a non-cash expenditure,the fund has had a positive operating cash flow since 2009. In most years, the operating loss has been covered by the revenue received from antenna leases on the water towers. Due to consolidations in the cellular industry and changing technologies,the lease revenue is not guaranteed to continue indefinitely. As part of the fee schedule discussion, staff is proposing to increase water rates by 11% to 15% in 2014. As presented, the operating budget for 2014 will have an operating loss. The revenue amount is calculated using the four year average for consumption and an 11% rate increase. The expenditure budget is decreasing by $19,966 (3.19%). The operating transfer of $55,000 is to the debt fund supporting the Casco Point Bonds and is required to pay for the water main improvements that were completed as part of the project. This transfer will continue for an additional eight years. 2014 capital expenditures as identified in the CIP include the north tower painting/rehabilitation,well #1 and#3 rehabilitation, main replacement on West Lafayette Road, and the feasibility report for the ion exchanger rebuild. The 2014 capital expenditures total$874,500 with an additional$460,000 called for in 2015. With a current cash balance of the fund at $1,214,623, staff would like the Council to consider issuing bonds to finance needed infrastructure improvements. The debt service on the bonds would be paid through water revenues. Sewer Fund In recent years the sewer fund has mostly operated at a loss. Non-operating revenues however, have consistently offset the operating losses. This has resulted in a positive operating cash flow for the fund. In 2013, the fund is projected to operate at a small profit. The proposed 2014 budget currently shows an operating loss. This includes depreciation of$265,000 which is a non-cash expenditure, so the fund will still experience a positive cash flow for the year. The major increase in expenditures is an increase in the MCES disposal charges. This line increases by $38,100(11%)for 2014; in 2013 this line item decreased by$64,000 from the previous year. The total expenditure budget is increasing $43,288 (3.34%) The revenues are calculated with a 4% increase in the sewer rates as called for in the 2009 rate study. The operating transfer is to cover the sewer improvement that were part of the Casco Point project and will continue for another eight years. Upcoming capital expenditures can be covered by the fund's current cash balances. Projects identified in the CIP for 2014 include: sewer main rehabilitation; lift station updates for LS #20, LS#18, and LS#31;a generators for lift station# 14;and portable generator to replace the 1984 Cummins generator. Total anticipated capital expenditures are$511,000. The cash balance for the fund is$3,066,143 as of October 31`n Storm Water The Stormwater Fund is for the most part project based. Operating expenditures are mainly limited to engineering associated with NPDES, SWPPP and other state and federal requirements. Public Works time and materials spent on culvert cleaning/replacement are also charged to this fund. The purpose of this fund is to collect money for the larger Stormwater projects that will be required in the future. The revenue in the attached budget is calculated with a 10%increase in the rates. This is the annual inerease required to avoid future special assessments for stormwater projects. Potential CIP projects in 2014 include: Stubb's Bay wetland restoration; Long Lake ravine stabilization; Dahl Road/North Shore Ravine Stabilization, West Lafayette Road BMP; and the Lafayette Bay Subwatershed water quality improvements. The capital expenditures total $179,000. As of the end of October the fund's cash balance is $911,295. Recvclin� The recycling fund was newly created in 2013. Its major expenditure line is for contracted recycling charges. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The overtime covers Public Works wages for the annual spring clean up. Contracted recycling charges are increasing by 2.8%. The budget is being presented with a 2% increase in rates. Cable The Cable fund is new for the 2014 budget. The projected revenues are based on current subscriber information and rates. The line item for Internet/Other communications covers the costs associated with streaming and online access of council meetings. CIP expenditures include recording equipment which will be purchased in 2013 in an amount of$35,000. Additional services will be considered for purchase in 2014 which include: Ecomment; paperless agendas; and a community bulletin board server. Water Operating Fund 2008 2009 2010 2011 2012 2013 2014 Actual Actual Actual Actual Actual Estimated Budget Operating Revenue Sales and User Fees 391,334 420,963 387,294 402,392 498,953 440,500 498,000 Operating Expenses Personnel Services 145,851 122,117 156,388 140,783 151,932 180,110 177,190 Professional Services 9,074 15,767 19,327 13,637 15,388 14,500 20,500 Operating and Maint Supplies 27,657 34,425 36,067 36,598 31,978 40,500 42,700 Utilities 80,826 79,884 69,904 70,999 65,614 74,000 74,950 Depreciation 78,618 78,128 79,741 99,006 90,464 90,000 90,500 Maintenance and Repairs 166,510 88,436 76,718 73,365 41,744 61,000 82,800 Admin Charges-General Fund 11,040 11,400 11,740 16,000 16,000 16,000 16,000 Insurance 13,650 14,745 13,150 13,150 10,000 9,990 7,050 Other Expenses 16,571 14,134 17,478 30,877 44,778 20,000 37,890 Total Operating Expenses 549,797 459,036 480,513 494,415 467,898 506,100 549,580 Operating Income (Loss) (158,463) (38,073) (93,219) (92,023) 31,055 (65,600) (51,580) Non-Operating Revenue (Expenses) Connection Fee - - - 2,820 233 - - Water Tower Rental 73,048 109,080 97,402 102,272 107,386 108,000 100,000 Special Assessments - 223,549 18,236 9,824 9,123 - - Investment Earnings 47,074 18,055 7,115 12,171 13,264 8,500 10,000 Interest Expense (11,403) (9,504) (7,604) (23,977) (1,900) 2,000 (60,000) Misc Revenue (Includes Penalties) 5,628 3,898 - 289 6,173 3,900 3,900 Total Non-Operating Revenue 114,347 345,078 115,149 103,399 134,279 122,400 53,900 Income (Loss) Before Transfers/CIP (44,116) 307,005 21,930 11,376 165,334 56,800 2,320 CIP Amount - 566,148 39,389 - 22,331 - 874,500 Enterprise Fund Summary Page 1 i Sewer Operating Fund 2008 2009 2010 2011 2012 2013 2014 Actual Actual Actual Actual Acutal Estimated Budget Operating Revenue Sales and User Fees 944,892 980,619 1,047,818 1,082,911 1,107,357 1,120,700 1,165,500 Operating Expenses Personnel Services 211,751 209,485 231,870 232,928 248,776 268,160 277,150 Professional Services 17,701 29,521 44,150 27,897 16,869 23,100 26,000 Operating and Maint Supplies 4,759 2,133 9,466 9,283 9,448 15,000 17,900 Utilities 36,719 49,556 40,428 46,242 31,398 46,200 40,000 Depreciation 228,624 235,195 235,941 239,502 256,217 260,000 265,000 Maintenance and Repairs 168,793 163,614 73,597 116,950 68,275 60,000 101,200 Admin Charges-General Fund 29,880 30,800 31,720 32,000 32,000 32,000 32,000 Insurance 9,850 10,588 8,850 8,850 10,000 10,000 10,000 Met Council Env Services 341,386 341,360 394,720 424,202 359,900 398,000 Other Expenses 330,713 12,681 29,014 45,489 58,886 43,400 59,900 Total Operating Expenses 1,038,790 1,084,959 1,046,396 1,153,861 1,156,071 1,117,760 1,227,150 Operating Income (Loss) (93,898) (104,340) 1,422 (70,950) (48,714) 2,940 (61,650) Non-Operating Revenue (Expenses) Connection Fee - - 18,910 34,970 - - - Speciai Assessments 12,396 199,025 105,785 36,122 46,181 - - Investment Earnings 110,065 62,184 45,263 38,641 36,749 45,000 45,000 Interest Expense - - - (36,776) - - - Misc Revenue (Includes Penalties) 63,717 36,860 24,221 14,376 34,471 20,000 20,000 Totai Non-Operating Revenue 186,178 298,069 194,179 87,333 117,401 65,000 65,000 Income (Loss) Before Transfers\CIP 92,280 193,729 195,601 16,383 68,687 67,940 3,350 CIP Amount 25,063 952,855 398,101 147,253 364,056 546,174 511,000 Enterprise Fund Summary Page 2 i Storm Water Operating Fund 2008 2009 2010 2011 2012 2013 2014 Actual Actual Actual Actual Actual Esitmated Budget Operating Revenue Sales and User Fees 159,242 143,621 159,631 178,578 196,000 206,300 227,000 Operating Expenses Personnel5ervices 12,351 21,128 11,983 30,522 45,000 43,870 45,470 Professional Services 42,206 62,658 45,359 27,014 10,000 31,000 29,500 Operating and Maint Supplies 1,186 1,580 1,005 1,783 1,250 1,250 2,000 Utilities - - - - - - - Depreciation 18,622 18,623 18,623 19,588 20,000 20,000 35,000 Maintanence and Repairs 7,340 21,699 7,146 15,214 8,780 8,000 12,500 Admin Charges-General Fund 10,080 10,380 10,000 13,300 16,000 16,000 16,000 Insurance 1,200 - - - 1,500 1,500 1,125 OtherExpenses - 459 131 978 700 700 700 Total Operating Expenses 92,985 136,527 94,247 108,399 103,230 122,320 142,295 Operating Income (Loss) 66,257 7,094 65,384 70,179 92,770 83,980 84,705 Non-Operating Revenue (Expenses) Trunk Charges - 80,819 74,410 46,519 107,800 - State Grant - - 165,316 - - - Investment Earnings 28,432 16,320 9,756 8,841 8,500 8,500 9,000 Misc Rev (Includes Penalty) 323 2,317 2,500 - 2,500 2,500 2,500 Total Non-Operating Revenue 28,755 18,637 93,075 248,567 57,519 118,800 11,500 Income (Loss) Before Transfers\CIP 95,012 25,731 158,459 318,746 150,289 202,780 96,2D5 CIP Amount - 337,683 25,902 72,896 77,370 4,100 179,OD0 Enterprise Fund Summary Page 3 i Recycling Operating Fund 2012 2013 2014 Actual Estimated Budget Operating Revenue Sales and User Fees - 100,750 102,800 Operating Expenses Personnel Services - 10,000 10,000 Professional Services - 95,000 97,660 Operating and Maint Suppiies - - - Utilities - - - Depreciation - - - Maintanence and Repairs - - - Admin Charges-General Fund - 1,875 2,500 Insurance - - - Other Expenses - 7,000 2,000 Total Operating Expenses - 113,875 112,160 Operating Income (Loss) - (13,125) (9,360) Non-Operating Revenue (Expenses) RMO - - - County Grant - 24,280 25,000 Investment Earnings - S00 500 Misc Rev (Includes Penalty) - 10,000 5,000 Total Non-Operating Revenue - 34,780 30,500 Income (Loss) Before Transfers - 21,655 21,140 I Enterprise Fund Summary Page 4 i Cable TV Fund 2012 2013 2014 Actual Estimated Budget Operating Revenue Peg Fees 18,700 Franchise Fees - - 68,900 Operating Expenses Personnel Services - - 3,040 Professional Services - - 3,500 Operating and Maint Supplies - - - � Utilities - - - Depreciation - - - Maintanence and Repairs - - - Admin Charges-General Fund - - 2,500 Insurance - - - OtherExpenses - - 6,600 Total Operating Expenses - - 15,640 Operating Income (Loss) - - 53,260 Non-Operating Revenue (Expenses) RMO - - - County Grant - - _ i' Investment Earnings - - - Misc Rev(Includes Penalty) - - - ' Total Non-Operating Revenue - - - � Income (Loss) Before Transfers\CIP - - 53,260 CIP Amount 35,000 15,000 Enterprise Fund Summary Page 5 (��.�1��=� Z City of Orono Budget Worksheet- Level 2 Enterprise Page: 1 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Water Operating Fund Enterprise Water 601-49400-101 Fuli-Time Employees Regular 99,196.87 118,262.00 61,954.26 106,073.00 106,073.00 12,189.00- -10.31% 601-49400-102 Full-Time Employees Overtime 10,481.24 10,000.00 8,440.48 10,000.00 10,000.00 .00 .00 601-49400-103 Part-Time Employees 10,057.94 12,500.00 7,708.56 12,634.00 12,634.00 134.00 1.07% 601-49400-121 PERA 8,675.27 9,299.00 5,662.51 9,322.00 9,322.00 23.00 25% 601-49400-122 FICA 9,542.77 9,812.00 6,282.89 9,837.00 9,837.00 25.00 25% 601-49400-135 City Benefit Contribution 12,682.62 13,476.00 13,549.60 22,100.00 22,100.00 8,624.00 64.00% 601-49400-143 OPEB Expense .00 00 .00 00 .00 .00 .00 601-49400-151 Worker's Comp Insurance Pre 00 6,760.00 5,070.00 7,217.00 7,217.00 457.00 6.76% 601-49400-201 Office supplies 184.07 .00 359.10 .00 200.00 200.00 00 601-49400-208 Books & Periodicals .00 .00 .00 00 .00 00 00 601-49400-212 Motor Fuels & Lubricants 2,670.77 3,700.00 .00 .00 3,000.00 700.00- -18.92% 601-49400-216 Chemicals and Chem Products 27,632.47 41,000.00 21,317.53 00 35,000.00 6,000.00- -14.63% 601-49400-221 Equipment Parts&Accessories 56.61 500.00 257.23 .00 500.00 00 .00 601-49400-222 Vehicle Equipment& Parts 260.44 1,000.00 .00 00 1,000.00 .00 .00 601-49400-223 Bldg/Grounds Maint. Supplies 689.54 200.00 29.47 00 200.00 .00 00 601-49400-226 Clothing & personal equipment 778.71 2,400.00 416.36 00 1,000.00 1,400.00- -58.33% 601-49400-227 Utility System Maint. Supplies 31,639.65 55,000.00 15,560.81 00 40,000.00 15,000.00- -27.27% I City of Orono Budget Worksheet- Level 2 Enterprise Page: 2 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease 601-49400-240 Small Tools and Minor Equip 509.25 6,000.00 620.76 .00 2,000.00 4,000.00- -66.67% 601-49400-301 Auditing and AccYg Services 3,500.00 3,500.00 4,000.00 .00 4,000.00 500.00 14.29% 601-49400-304 Engineering-Consulting 10,937.50 4,200.00 17,865.03 .00 15,000.00 10,800.00 257.14% 601-49400-307 Legal-Consulting 00 450.00 101.50 .00 500.00 50.00 11.11% 601-49400-312 Bank Fees 949.60 600.00 821.49 .00 1,000.00 400.00 66.67% 601-49400-319 Professional Services 00 500.00 3,642.24 .00 500.00 .00 .00 601-49400-321 Telephone 4,019.31 2,500.00 2,352.17 .00 3,500.00 1,000.00 40.00% 601-49400-322 Postage 262.46 400.00 230.66 .00 350.00 50.00- -12.50% 601-49400-331 Travet Expenses .00 .00 00 .00 00 .00 .00 601-49400-340 General Advertising 00 .00 527.46 .00 500.00 500.00 .00 601-49400-352 Printing & Publishing 00 .00 00 .00 00 .00 .00 601-49400-361 General Liability Ins .00 6,700.00 5,025.00 .00 4,000.00 2,700.00- -40.30% 601-49400-362 Umbrella Liability Ins .00 1,100.00 825.00 .00 1,100.00 .00 .00 601-49400-366 Property Insurance 00 1,730.00 1,297.50 .00 1,500.00 230.00- -13.29% 601-49400-367 Equipment Floaters Ins .00 110.00 82.50 .00 100.00 10.00- -9.09% 601-49400-368 Automotive Insurance .00 350.00 262.50 00 350.00 .00 .00 601-49400-370 Insurance Agent of Record .00 00 00 .00 .00 00 .00 601-49400-381 Gas & Electric 60,635.59 70,000.00 33,687.89 .00 70,000.00 00 .00 601-49400-382 Water Utilities 959.00 1,000.00 489.92 .00 1,100.00 100.00 10.00% I City of Orono Budget Worksheet- Level 2 Enterprise Page: 3 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease 601-49400-387 Intergovernmental Services 36,251.88 13,000.00 10,564.89 .00 30,000.00 17,000.00 130.77% 601-49400-401 Repairs/Maint-Office Equip 2,284.04 2,300.00 1,742.04 00 2,300.00 .00 .00 601-49400-402 Repairs/Maint-Auto Equip .00 500.00 .00 00 500.00 .00 .00 601-49400-403 RepairslMaint-Misc. Equip 1,878.09 00 3,104.86 .00 00 .00 .00 601-49400-404 Repairs/Maint-Bldgs/Grounds 1,372.33 00 .00 .00 .00 .00 .00 601-49400-405 Repairs/Maint-Watermains/plan 3,054.33 45,000.00 18,357.89 .00 40,000.00 5,000.00- -11.11% 601-49400-409 Depreciation &Amortization 90,464.00 99,000.00 .00 00 90,500.00 8,500.00- -8.59% 601-49400-415 Other Equipment Rentals 183.61 200.00 52.18 00 200.00 .00 00 601-49400-433 Memberships 450.00 500.00 473.00 .00 500.00 .00 00 601-49400-437 Training & Development 2,191.44 3,000.00 1,205.06 .00 3,000.00 .00 .00 601-49400-438 Administrative Charge 16,000.00 16,000.00 12,000.00 .00 16,000.00 .00 .00 601-49400-440 Special Equipment Replaceme .00 00 .00 .00 .00 .00 .00 601-49400-441 Licenses &Taxes 551.20 2,000.00 1,605.70 .00 2,000.00 .00 .00 601-49400-489 Other Miscellaneous Charges 15,601.01 3,000.00 1,846.53 00 3,000.00 .00 .00 601-49400-612 Other Long-Term Oblig Interest 1,900.00 4,000.00 .00 00 00 4,000.00- -100.00% 601-49400-613 Other Interest Expense .00 00 .00 00 .00 .00 .00 601-49400-720 Operating Transfers 55,000.00 55,000.00 .00 00 55,000.00 .00 .00 Total Water: 523,503.61 626,549.00 269,392.57 177,183.00 606,583.00 19,966.00- -3.19% I City of Orono Budget Worksheet- Level 2 Enterprise Page: 4 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Total Water Operating Fund: 523,503.61 626,549.00 269,392.57 177,183.00 606,583.00 19,966.00- -3.19% City of Orono Budget Worksheet- Level 2 Enterprise Page: 5 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Sewer Operating Fund Enterprise Sewer 602-49450-101 Full-Time Employees Regular 163,501.00 176,757.00 110,872.45 177,310.00 177,310.00 553.00 31% 602-49450-102 Full-Time Employees Overtime 14,111.47 12,000.00 16,225.86 12,000.00 12,000.00 .00 .00 602-49450-103 Part-Time Employees 10,057.94 12,489.00 7,708.56 12,634.00 12,634.00 145.00 1.16% 602-49450-121 PERA 13,604.45 14,590.00 9,773.20 14,632.00 14,632.00 42.00 .29% 602-49450-122 FICA 15,038.27 15,395.00 10,512.86 15,439.00 15,439.00 44.00 29% 602-49450-135 City Benefit Contribution 28,277.78 25,704.00 25,652.08 33,134.00 33,134.00 7,430.00 28.91% 602-49450-143 OPEB Expense .00 .00 .00 00 00 .00 00 602-49450-151 Worker's Comp Insurance Pre .00 11,226.00 8,419.50 12,000.00 12,000.00 774.00 6.89% 602-49450-201 Office supplies 184.07 500.00 359.09 .00 400.00 100.00- -20.00% 602-49450-212 Motor Fuels & Lubricants 6,231.80 9,000.00 35.00 .00 7,500.00 1,500.00- -16.67% 602-49450-221 Equipment Parts &Accessories 1,010.58 1,000.00 235.52 .00 1,000.00 .00 .00 602-49450-222 Vehicle Equipment& Parts 2,566.48 2,500.00 1,109.32 00 2,500.00 00 00 602-49450-223 Bldg/Grounds Maint. Supplies 1,078.71 500.00 38.50 00 500.00 00 00 602-49450-226 Clothing & personal equipment 802.55 1,500.00 450.98 00 1,000.00 500.00- -33.33% 602-49450-227 Utility System Maint. Supplies 4,939.90 9,000.00 5,653.61 .00 9,000.00 .00 .00 602-49450-240 Small Tools and Minor Equip 18.86 5,000.00 1,458.79 .00 5,000.00 .00 00 602-49450-301 Auditing and Acct'g Services 9,000.00 5,000.00 6,000.00 00 6,000.00 1,000.00 20.00% I City of Orono Budget Worksheet- Level 2 Enterprise Page: 6 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease 602-49450-304 Engineering-Consulting 2,845.84 15,000.00 7,736.25 .00 15,000.00 .00 .00 602-49450-307 Legal-Consulting 261.00 1,000.00 .00 00 1,000.00 00 .00 602-49450-312 Bank Fees 949.57 600.00 821.54 .00 1,000.00 400.00 66.67% 602-49450-319 Professional Services 3,812.27 1,500.00 .00 00 4,000.00 2,500.00 166.67% 602-49450-321 Telephone 4,827.74 5,000.00 3,066.19 .00 5,000.00 .00 .00 602-49450-322 Postage 1,150.98 1,200.00 1,190.78 .00 1,500.00 300.00 25.00% 602-49450-331 Travel Expenses .00 .00 60.34 .00 100.00 100.00 .00 602-49450-340 General Advertising .00 300.00 189.59 .00 300.00 .00 .00 602-49450-352 Printing & Publishing .00 100.00 .00 .00 .00 100.00- -100.00% 602-49450-361 General Liability Ins 00 4,500.00 3,375.00 .00 4,500.00 .00 .00 602-49450-362 Umbrella Liability Ins 00 2,500.00 1,875.00 .00 2,500.00 .00 .00 602-49450-366 Property Insurance .00 1,500.00 1,125.00 .00 1,500.00 .00 .00 602-49450-367 Equipment Floaters Ins .00 500.00 375.00 .00 500.00 .00 00 602-49450-368 Automotive Insurance 00 1,000.00 750.00 .00 1,000.00 .00 .00 602-49450-370 Insurance Agent of Record .00 .00 .00 .00 00 .00 .00 602-49450-379 �nsurance Deductibles 00 00 .00 .00 00 .00 .00 602-49450-381 Gas & Electric 26,570.12 40,000.00 18,265.34 00 40,000.00 .0� .00 602-49450-382 Water Utilities .00 00 .00 00 .00 .00 .00 602-49450-383 MCES-Sewer 424,202.04 359,900.00 299,886.10 00 398,000.00 38,100.00 10.59% I City of Orono Budget Worksheet- Level 2 Enterprise Page: 7 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease 602-49450-387 Intergovernmental Services 64,916.79 31,500.00 20,975.87 .00 40,000.00 8,500.00 26.98% 602-49450-401 Repairs/Maint-Office Equip 2,284.05 2,100.00 2,242.05 .00 2,200.00 100.00 4.76% 602-49450-402 Repairs/Maint-Auto Equip 168.73 1,500.00 00 .00 1,500.00 .00 00 602-49450-403 Repairs/Maint-Misc. Equip 863.90 3,500.00 5,316.83 .00 3,500.00 .00 .00 602-49450-404 Repairs/Maint-Bldgs/Grounds 00 .00 .00 .00 .00 00 .00 602-49450-406 Repairs/Maint-Swr lines/lifts 46,382.66 65,000.00 34,466.35 .00 60,000.00 5,000.00- -7.69% 602-49450-409 Depreciation &Amortization 256,217.00 250,000.00 .00 .00 265,000.00 15,000.00 6.00% 602-49450-415 Other Equipment Rentals 2,098.78 2,500.00 240.27 00 2,500.00 .00 .00 602-49450-433 Memberships .00 1,000.00 .00 00 1,000.00 .00 .00 602-49450-437 Training & Development 2,460.00 3,500.00 1,650.00 .00 4,000.00 500.00 14.29% 602-49450-438 Administrative Charge 32,000.00 32,000.00 24,000.00 .00 32,000.00 .00 .00 602-49450-439 Meeting Expenses 00 .00 00 .00 .00 00 .00 602-49450-440 Special Equipment Replaceme .00 .00 00 .00 .00 .00 .00 602-49450-441 Licenses &Taxes 1,131.94 1,000.00 348.00 .00 1,000.00 00 .00 602-49450-443 Repairs/Maint-I&I Reduction 7,939.89 50,000.00 1,207.90 .00 25,000.00 25,000.00- -50.00% 602-49450-489 Other Miscellaneous Charges 2,838.42 3,500.00 2,466.97 00 3,500.00 .00 .00 602-49450-613 Other Interest Expense 00 .00 .00 .00 .00 00 .00 602-49450-720 Operating Transfers 111,000.00 111,000.00 00 00 111,000.00 .00 .00 City of Orono Budget Worksheet- Level 2 Enterprise Page: 8 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Total Sewer: 1,265,345.58 1,294,861.00 636,135.69 277,149.00 1,338,149.00 43,288.00 3.34% Total Sewer Operating Fund: 1,265,345.58 1,294,861.00 636,135.69 277,149.00 1,338,149.00 43,288.00 3.34% City of Orono Budget Worksheet- Level 2 Enterprise Page: 9 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Contracted Recycling Fund Enterprise Recycling 603-49500-101 Full-Time Employees Regular .00 6,657.00 .00 5,575.00 6,650.00 7.00- -.11% 603-49500-102 Full-Time Employees Overtime .00 2,000.00 1,850.00 .00 2,000.00 00 .00 603-49500-103 Part-Time Employees .00 00 .00 00 .00 .00 .00 603-49500-104 Temporary Employees Regular .00 .00 00 00 .00 .00 .00 603-49500-121 PERA .00 483.00 134.17 404.00 640.00 157.00 32.51% 603-49500-122 FICA .00 509.00 146.94 426.00 670.00 161.00 31.63% 603-49500-135 City Benefit Contribution .00 .00 313.78 .00 00 00 .00 603-49500-151 Worker's Comp Insurance Pre .00 47.00 35.25 34.00 40.00 7.00- -14.89% 603-49500-221 Equipment Parts &Accessories .00 00 .00 .00 .00 00 .00 603-49500-316 Contract Recycling Pickup .00 137,000.00 63,034.48 00 97,660.00 39,340.00- -28.72% 603-49500-319 Professional Services 00 .00 2,967.41 00 .00 .00 .00 603-49500-352 Printing & Publishing .00 500.00 .00 .00 .00 500.00- -100.00% 603-49500-401 Repairs/Maint-Office Equip .00 00 1,500.00 .00 .00 .00 .00 603-49500-438 Administrative Charge .00 00 1,875.00 00 2,500.00 2,500.00 .00 603-49500-442 Spring,FaII,X-mas Cleanup 00 2,000.00 1,387.80 00 2,000.00 00 00 603-49500-444 Organics Recycling .00 00 .00 00 00 .00 .00 City of Orono Budget Worksheet- Level 2 Enterprise Page: 10 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Total Recycling: .00 149,196.00 73,244.83 6,439.00 112,160.00 37,036.00- -24.82% Total Contracted Recycling Fund: .00 149,196.00 73,244.83 6,439.00 112,160.00 37,036.00- -24.82% i � City of Orono Budget Worksheet- Level 2 Enterprise Page: 11 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Cable Television Cable TV Cable N 614-49840-102 Full-Time Employees Overtime .00 .00 00 00 2,600.00 2,600.00 00 614-49840-121 PERA 00 .00 .00 00 190.00 190.00 00 614-49840-122 FICA .00 .00 .00 .00 200.00 200.00 .00 614-49840-135 City Benefit Contribution 00 00 00 00 .00 .00 00 614-49840-143 OPEB Expense 00 .00 00 .00 .00 .00 .00 614-49840-151 Worker's Comp Insurance Pre .00 .00 .00 .00 50.00 50.00 .00 614-49840-201 Office supplies .00 .00 00 .00 00 00 00 614-49840-301 Auditing and AccYg Services .00 00 .00 .00 2,000.00 2,000.00 .00 614-49840-307 Legal-Consulting 00 00 .00 .00 500.00 500.00 .00 614-49840-319 Professional Services .00 .00 .00 .00 1,000.00 1,000.00 .00 614-49840-329 Internet/Other Communications .00 .00 .00 .00 6,600.00 6,600.00 00 614-49840-438 Administrative Charge .00 .00 00 .00 2,500.00 2,500.00 00 Total Cable N: .00 .00 00 00 15,640.00 15,640.00 00 Total Cable Television: .00 .00 00 .00 15,640.00 15,640.00 .00 City of Orono Budget Worksheet- Level 2 Enterprise Page: 12 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Storm Water Utility Op Fund Enterprise Storm Water 651-4991 0-1 01 Full-Time Employees Regular 48,731.60 33,525.00 44,510.49 33,768.00 33,768.00 243.00 .72% 651-49910-102 Full-Time Employees Overtime .00 .00 254.80 00 .00 .00 .00 651-49910-121 PERA 3,331.60 2,431.00 3,065.23 2,448.00 2,448.00 17.00 .70% 651-49910-122 FICA 3,736.57 2,565.00 3,456.71 2,584.00 2,584.00 19.00 .74% 651-49910-135 City Benefit Contribution 1,861.06 4,520.00 1,444.59 5,770.00 5,770.00 1,250.00 27.65% 651-49910-143 OPEB Expense .00 .00 .00 .00 .00 .00 .00 651-49910-151 Worker's Comp Insurance Pre .00 824.00 618.00 900.00 900.00 76.00 9.22% 651-49910-201 Office supplies 2,791.58 250.00 .00 .00 00 250.00- -100.00% 651-49910-227 Utility System Maint. Supplies 16,106.22 6,000.00 2,417.41 .00 10,000.00 4,000.00 66.67% 651-49910-240 Small Tools and Minor Equip .00 500.00 412.60 .00 500.00 .00 .00 651-49910-301 Auditing and AccYg Services 3,500.00 3,500.00 3,500.00 .00 3,500.00 .00 .00 651-49910-304 Engineering-Consulting 1,101.00 26,500.00 5,686.50 00 25,000.00 1,500.00- -5.66% 651-49910-307 Legal-Consulting 478.50 1,000.00 .00 .00 1,000.00 .00 .00 651-4991 0-31 9 Professional Services 00 00 .00 .00 .00 .00 .00 651-49910-322 Postage 1,104.14 1,000.00 1,190.77 .00 1,500.00 500.00 50.00% 651-49910-331 Travel Expenses .00 00 .00 .00 00 00 00 651-49910-352 Printing & Publishing 00 .00 .00 .00 .00 .00 .00 City of Orono Budget Worksheet- Level 2 Enterprise Page: 13 Periods: 00/13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease 651-49910-361 General Liability Ins .00 1,000.00 750.00 .00 750.00 250.00- -25.00% 651-49910-362 Umbrella Liability Ins .00 500.00 375.00 .00 375.00 125.00- -25.00% 651-49910-370 Insurance Agent of Record .00 .00 .00 .00 .00 .00 .00 651-49910-379 Insurance Deductibles .00 .00 00 .00 .00 .00 .00 651-49910-401 Repairs/Maint-Office Equip 584.00 .00 1,252.00 00 1,500.00 1,500.00 .00 651-49910-402 Repairs/Maint-Auto Equip 123.58 1,500.00 .00 .00 1,000.00 500.00- -33.33% 651-49910-404 Repairs/Maint-Bldgs/Grounds 480.00 .00 .00 .00 .00 00 .00 651-49910-406 Repairs/Maint-Swr lines/lifts 00 .00 .00 .00 .00 .00 00 651-49910-409 Depreciation &Amortization 25,934.00 20,000.00 .00 .00 35,000.00 15,000.00 75.00% 651-49910-415 Other Equipment Rentals .00 .00 .00 .00 00 .00 .00 651-49910-433 Memberships .00 .00 .00 00 .00 .00 .00 651-49910-437 Training & Development 00 500.00 .00 00 500.00 .00 .00 651-49910-438 Administrative Charge 16,000.00 16,000.00 12,000.00 .00 16,000.00 00 .00 651-49910-441 Licenses &Taxes .00 .00 00 00 .00 .00 .00 651-49910-489 Other Miscellaneous Charges .00 200.00 971.00 00 200.00 00 00 651-49910-513 Easements & Rights of Way .00 .00 .00 .00 00 00 00 651-49910-592 Storm Sewer Utility Const .00 .00 .00 .00 00 .00 .00 Total Storm Water: 125,863.85 122,315.00 81,905.10 45,470.00 142,295.00 19,980.00 16.33% � City of Orono Budget Worksheet- Level 2 Enterprise Page: 14 Periods: 00J13-11/13 2012 2013 2013 2014 2014 2014 Percent Account Number Account Title Actual Budget Current year Dept. Request Manager Rec Increase/ Change Actual Decrease Total Storm Water Utility Op Fund: 125,863.85 122,315.00 81,905.10 45,470.00 142,295.00 19,980.00 16.33% Grand Totals: 1,914,713.04 2,192,921.00 1,060,678.19 506,241.00 2,214,827.00 21,906.00 1.00% II 0 MEMORANDUM TO: CITY COUNCIL FROM: JESSE STRUVE, PE SUBJECT: UTILITY RATE INCREASES DATE: 11/25/13 CC: WATER RATES In 2009, the City hired Elhers to assist the City in performing a rate study for the sanitary sewer, storm sewer, and water enterprise funds. This rate study indicated there should be numerous changes to the existing rates of all the enterprise funds and gave recommended rate increases through 2016 (see Exhibit A). In 2012, staff and Bolton and Menk created a 20 year Capital Improvement Plan (CIP). The CIP outlines anticipated revenues and capital improvements. The CIP also provides estimated yearly e��d-of-year fund balances. The results of the 2012 CIP and the draft 2013 CIP provide a stark realization as to the long term impacts to the Storm Sewer and Water Enterprise Funds. At the October 28`�' work session, the Council indicated they would like staff to analyze whether it makes sense to have two different water rates. Staff analyzed each system and calculated the annual expenses and revenues for each system (see attached Exhibit B & C). Based on the existing condition of each system, the cost of producing water is significantly higher in the Navarre system ($5.57 per unit in Navarre and $3.96 per unit in North system). According to the Draft 2014 CIP, there is a number of capital projects associated with the north system. These improvements include the repainting of the water tower, the installation of a new well, and improvements to the existing well house. When these improvements are complete, the depreciation increases for the North system increases by approximately $34,000. Since the north system has a low number of connections and has less revenue in comparison to the Navarre system, even a small increase in expenses will afifect the unit cost of production. Once the added depreciation is included in the equation, the cost of producing water in both systems becomes much closer ($5.57 per unit in Navarre and $5.14 in the North system). Because of the few connections to the North system, it becomes very expensive to maintain a water system and ultimately the costs of production in the North system are comparable to delivering softened water in the Navarre system. Therefore, it is recommended to keep one rate structure for all water systems in Orono. According to the 2009 Rate Study, it was recommended there should be an increase of 8% to the 2013 water rates. While a jump in rates of 8% is significant, it does not address the short or long term issues with the water system. The Fund Balance sheet included in the Draft 2014 CIP (see attached Exhibit D), indicate the fund balance will be depleted by 2017. It is recommended the Council adopt an increase above what is recommended in the 2009 Rate - Study. While rate increases are never popular, it is imperative that the enterprise funds are self sufficient and not reliant on outside funding sources like cellular leases. Staff analyzed two methods of increasing the rates over a 4 yr period. Example 1: Proposed Annual Rate 15% 10% 10% 9% Increase Increase of 7% 2013 2014 2015 2016 2017 2017-2033 Base Rate $28.04 $32.25 $35.47 $39.02 $42.53 Tier 1 Rate $2.50 $2.88 $3.16 $3.48 $3.79 Tier 2 Rate $3.14 $3.61 $3.97 $4.37 $4.76 Tier 3 Rate $4.71 $5.42 $5.96 $6.55 $7.14 Example 2: Proposed Annual Rate 11°/a 11% 11% 11% Increase Increase of 7% 2013 2014 2015 2016 2017 2017-2033 Base Rate $28.04 $31.12 $34.55 $38.35 $42.57 Tier 1 Rate $2.50 $2.78 $3.08 $3.42 $3.80 Tier 2 Rate $3.14 $3.49 $3.87 $4.29 $4.77 Tier 3 Rate $4.71 $5.23 $5.80 $6.44 $7.15 Example 1 has a higher initial increase with subsequent lower yearly increases after, while the second is a uniform increase over the next four years. Both examples bring Orono's water rates in line with surrounding communities and keep the overall fund trending toward being self sufficient and not reliant on cellular leases (see Exhibit E). It is staff's recommendation to follow the proposed rate increases Besides just increasing rates, staff evaluated other changes to the Water Fund. These included moving up a couple of large projects and issuing a $2,000,000 bond to pay for them and pushing � back future infrastructure replacement 4 years to 2020 (see Exhibit F). By issuing bonds, the costs of the large improvements can be spread out over a 15 yr timeframe, and while the City needs to start replacing the aging infrastructure, the existing condition of the fund required it to be delayed. SANITARY SEWER RATES The 2009 Rate Study outlined a continual path of increasing the sanitary sewer rates by 4% per year. While this fund is relatively healthy and does not require a large correction like the water fund, there still issues beginning in 2023. It is recommended to follow the 2009 Rate Study's recommendations and implement a 4% rate increase to the sanitary sewer rates for 2014. STORM SEWER RATES The 2009 Rate Study outlined a continual path of increasing the sanitary sewer rates by 10% per year. While this fund is also in a similar situation as the water fund, there are a number of unknowns which may drastically impact this fund. The new Municipal Separate Storm Sewer System (MS4) Permit was just recently released. Since it is a new permit with new requirements, it is currently unknown how the permit requirements will impact the City on a long term basis. Once staff has a better understanding of the impacts to the City, we will bring this back to the Council for a rate adjustment. At this time, it is recommended to follow the 2009 Rate Study's recommendations and implement a 10% rate increase to the storm sewer rates for 2014. EXHIBITS A. 2009 Water, Sanitary, and Storm sewer Utility Rate Study B. Average Yearly Cost Breakdown C. Cost for City to Produce a Unit of Water Spreadsheet D. Draft 2014 CIP Water, Sewer, and Storm Sewer Fund Balance Sheet E. Impacts Each Example has on the Water Fund Balance F. Changes Made to Draft 2014 CIP. 3 �x�tsB�i � ,� Financiai Planning �..!# December, 2009 Water, Sanitary and Storm Sewer Utility Rate Study City of Orono, Minnesota Prepared By: -� City Staff ''' ` And ,.� .<, �., i �::.:� Ehlers t �� ,�:..��,,.>: <..� -., ��:_' " r - www.ehlers-inc.com � E H L E R S ��i Minnesota phone 65i-897-8500 3060 Centre Pointe Drive 18A0ER5IN iUBLK fINANCE pffices also e�W►i�consin and Ieinas fax 651-897-8555 Roseville.MN 5511 3-11 22 toll free 800-552-1171 Table of Contents EXECUTIVESUMMARY ................................................................................................1 GOALSOF A UTILtTY RATE STUDY............................................................................2 BACKGROUND INFORMATION ON ENTERPRISE SYSTEMS ...................................3 WATERSYSTEM ...........................................................................................................5 Descriptionof the Water System................................................................................................5 Historic Trend of Cash Balances................................................................................................ 7 Current Rate Structure: Water Fees............................................................................................ 8 Pro-Forma Analysis Assumptions.............................................................................................. 8 Rate Option and Recommendations............................................................................................9 ProposedWater Rates:.............................................................................................................. 11 SEWERSYSTEM .........................................................................................................17 SewerRate Structure................................................................................................................. 17 Pro-Forma Analysis Assumptions............................................................................................ 17 ProposedSewer Rates:.............................................................................................................. 18 STORMSEWER SYSTEM ...........................................................................................ZO ProposedStorm Sewer Rates....................................................................................................20 RECOMMENDATIONS.................................................................................................25 Comparisons to Other Cities' Rates......................................Appendix A Water Utility Projections.....................................................Appendix B Sanitary Sewer Utility Projections.........................................Appendix C Storm Water Utility Projections............................................Appendix D Capital Improvement Plan for Water.......................... ...........Appendix E Capital Improvement Plan for Sanitary Sewer.........................Appendix F Capital Improvement Plan for Storm Sewer...........................Appendix G Proposed Residential Rate Tier Options................................Appendix H Executive Summary The goal of a rate study is to ensure long-term financial health of the utility enterprise funds. � As part of this analysis, the rate study takes into account historic trends, assumptions and state mandates, as applicable. • The water system has had relatively stable cash balances over the past several years, however new legislation requires cities within the seven county Twin Cities Metropolitan Area to implement conservation rates by January 1, 2010. The fund currently uses combination of pay-as-you-go and internal financing for its capital needs. • The sanitary sewer system has had stable cash balances over the past several years. However the need for capital improvement projects may bring financial pressures to the fund in future years. The fund currently uses a combination of pay-as-you-go and bond financing for its capital needs. • The storm sewer system has stable, but lower, cash balances. This is not unusual for storm sewer utilities. Ongoing capital improvement projects may require the use of debt. Recommendations • Recommendation One: Adopt the tier structure as proposed. • Recommendation Two: Adopt the rate changes as proposed � Recommendation Three: Adopt target cash balance goals as recommended. • Recommendation Four: Update the utility study periodically to determine progress with cash balance goals and an updated capital improvement plan. Utilrt} Rate Studp Page 1 Cin�n(Oraro..blinnesau Deremher,ZOU9 Goals of a Utility Rate Study The City of Orono retained Ehlers to assist staff in preparing financial projections for the water and sanitary and storm sewer system utilities. The purpose of the rate study is to ensure that: 1. Rates are sufficient to pay for the ongoing operations and capital improvements, and to maintain adequate cash balances 2. Staff and Council revisit cash balance policies to ensure they are meeting their enterprise system's current and future needs 3. The rate structure distributes the costs of operating the system across utility users consistent with the policy objectives of the Council 4. Orono complies with the new State mandates of conservation rate structures C�tiliry•Rate Sardy P��ge 2 CiR°oJ Oroito. hlinrze.rota December. ?009 Background Information on Enterprise Systems Enterprise Funds Most City operations, such as public works, public safety, administration and parks, are accounted for under governmental funds, primarily embedded in the General Fund. These operations usually depend on a variety of revenues, including property taxes, intergovemmental aid, and charges for services. Municipal utility funds are considered "enterprise funds." They are intended to be operated as a private enterprise in which the fee revenue pays for all operations. The City has three utility funds: water, sewer, and storm sewer. In the City's Comprehensive Annual Financial Report (CAFR), enterprise funds are segregated funds, recognizing the unique purpose and revenue streams of these City functions. In addition to the CAFR segregating the enterprise funds, the City's Capital Improvement Plan (CIP) distinguishes between projects that will be funded by the enterprise funds, and those funded by general governmental funds. The Water Fund: The City's water is provided by three wells that pumped 112,642,000 gallons in 2008 and served residents in Orono and some residents in the City of Minnetonka Beach. Additionally, the City purchases water from the City of Wayzata for residents in the Chevy Chase area. The State of Minnesota Mandate In 2008, the State of Minnesota mandated conservation rate structures for all water systems in the State. All cities in the metropolitan area serving more than 1,000 people are required to comply with this mandate by January 1, 2010. The City of Orono is required to meet this deadline by this time. The Sewer Fund: The Metropolitan Council Influence The City of Orono participates in the Metropolitan Council Environmental Services (MCES) sewer system. This means that the City's sanitary sewer system flows to the MCES treatment plant and the City receives a bill from the MCES for the service. The City does not maintain its own sanitary sewer treatment plant. Currently, the MCES charge for service is $194.6 per million gallons for a total charge of $341,400, which is slightly lower than the budget, and is estimated to remain stable at $341,400 in 2010, and then increase by 5.50% per year. MCES is currently in a transition period concerning the allocation of system costs. MCES allocates the cost of the metro area sanitation system to a user city based on the relative percent of that city's flow into the system. The allocation method may change as the MCES and a user city task force work through this issue in the coming year. Orono's share of the cost may change by more than Ur!!;n•Ru�e srudy Page 3 Citv of Orono, �Lli�t�resotct December•.?009 5.50%. At this point, our best estimate is that the MCES costs will increase by approximately 5.50% per year. The MCES disposal fees comprise approximately 31% of the sewer utility operating expenses The Storm Sewer Fund: The City's Perspective The storm sewer fund was created to manage storm water runoff qualiry in concert with the local watershed. City projects often include repair and maintenance of drainage ditches, storm water ponds, and other wetland outlets. Property owners are usually charged based on the amount of impervious land, which doesn't allow rainwater to be absorbed into the ground, but rather flows through the drainage ditches and into local lakes and streams. (Itiliry Rate Studti• Page d Citv qf Urono..4fimre:.cota Derernher. ?009 Water System Description of the Water System Orono's water supply is provided by groundwater. There are currently 3 wells. The graph below shows the historic water usage from 2005 to 2008. Historic Water Usage 105,000,000 10Q,000,000 95,000,000 ------ , 90,000,000 — --- - ! 85,000,000 - .-- - --- _ ' 80,000,000 --- - ; , 75,000,000 2005 2006 2007 2008 p Water Sold Daru from report to MN DNR-Annual Report of Water Use Factors impacting the amount of water usage include: 1) change in the number of users / accounts from new development or closures; 2) the level of activity by individual users and 3) weather(dry summers translate into heavier water demand). As of December 31, 2008, Orono had 1,026, water accounts, which include all residential, commercial, multi family, and water sales to Minnetonka Beach. The user accounts can be broken into the following categories: Residences are Majority of Users _---___-- _ Y..�.___. Minn brika � each:--– -— � , ommercial 100% / ---� 80°l0 �rf'' 60% Resideniiai --- � �� 40% -- ��+ - ��,gw' 20% ' 0% �, 2009 �OMinnetonka Beach j 15 O Commercial 4� A Residential 97� Uriliry Rara Studv Puge S Cin.�o%Urono. h9if�ttesotn December, 3009 Residential accounts, which include Chevy Chase and Minnetonka Beach, comprised 85% of the total accounts and accounted for 97% of total volume of water sold. __---_ _ _ ,=� -- 100.0% �- y'�m� ' -- 90.0% � � - � --- 80.0% /' ._ _-- ■Minnetonka Beach 70.0% ' - O Chevy Chase 60.0% � � -----� ❑Commercial 5�.�% j -- ■Multi Family 40.0% - ----- a Residential 30.0% 20.0% /�� 10.0%- 0.0% �- 2009 . Residential 83,024,000 76.8% Multi-Family 1,451,000 1.3% Commercial 14,724,000 13.6% Chevy Chase 7,260,000 6.7% Minnetonka Beach 1.698,780 1.6% Total 108,157,780 Water usa e from 4/2008 to 1/2009 L'rifin Rate Srudv Page 6 CrN ojOra�a ,4linne.rota December.?009 Historic Trend of Cash Balances The following graph shows the historic trend in cash balances for the Water and Sewer Utility. Historic Trend in Cash Balances $3,000,000 -._.,._____�.._� _ ; $2,500,000 - ---� i $2,000,000 � i $1,500,000 — -� ' � $1,000,000 ------ -- --� $500,000 -- --{ $� 2005 2006 � 2007 ' 2008 2009 Est �Water Fund �:$1,156,202 $1,126,043 ;$1,207,797 $1,018,793 $1,189,863 ', ', �Sewer Fund $2,321,238 $2,447,052 ;$2,563,414 $2,822,850 $2,575,492 ; ', �. � ----- I The following graph for the Water Utility shows the trend of operating revenues, operating expenses, capital outlay with cash balances. While there has been operating losses, cash balance has been at healthy levels because other revenues such as water tower rental fees and connection fees, have offset losses. The fund as a whole needs to operate at something more than a break even level in the future. Water Fund Historic Trends � 1,400,000 1,200,000 �-- ----- 1,000,000 -- -- — I� �Operating Revenues 800,000 ------- , '' 600,000 --.-. ___ __ ____ - ; �Operating 400,000 -- ! Expenses . � 200,000 - - Capital ''i �, 0 2005 2006 2007 2008 2009 ' ��Cash 'i Est ' Balance G�rltity Rure Sru�lv P�=S�! Citv�J�Orono.Ali�ure.a�ta Decemher. 1009 Current Rate Structure: Water Fees There are three primary components to the City's water utility revenues: • Fixed Charges � Usage Fees 1) Fixed Charges are a fixed quarterly fee based on the property location. The fixed charge is established to recover certain fixed expenses, such as the billing system, that the City must incur for a customer regardless of the amount of water consumed. The Navarre area is charged $30.11 per quarter, the Highway 12 and the Chevy Chase areas are charged $10.92 per quarter. The fee does not include any water usage. 2) Usage Fees are based on the metered use of water. Currently the billing structure is a fixed flat rate depending on property location. The Navarre area is charged$2.54 per thousand gallons, the Highway 12 is charged $3.54 per thousand gallons and the Chevy Chase area is charged $2.64 per thousand gallons. Pro-Forma Analysis Assumptions Following is a chart that summarizes the significant assumptions in the rate study. Water Utilit Growth and Utility No new residential connections. The estimated usage for existing residents Usage is anticipated to be at slightly belo�v the 2008 usage levels in order to be conservative. O eratin EX enses Increase 3%annually Capital Expenses Costs of improvements are inflated 5%per year. Future total capital improvements from 2010 to 2016 are estimated at an inflated value of$2.9M. Rate Structure Current billing structure is described above and is dependent on property location. Usage is charged a flat per thousand gallons rate per quarter plus a fixed quarterly charge depending on property location. The proposed rate structures on Appendix H moves to a three-tiered rate system for all end users within the City. Water users are treated the same in the Navarre and the Che Chase areas. A summary of the CIP can be found in Appendix E. Uriliry Rure Stu�iv PuBe� Cih�ojUror�o,bliiu�esotu Deeember, J009 Rate Option and Recommendations Tiered Rate Structure Beginning in 2010, we are recommending that the City implement a tiered rate structure for water usage. We are also recommending that the Navarre and Highway 12 areas be treated the same with the same rate tiers and charges. The Chevy Chase area will need a different tier structure due to the fact that these 15 residents are served by purchased water from the City of Wayzata and the usage patterns are different from the city as a whole. With a multi tiered rate system, the typical resident will pay more per gallon for higher water usage and for sprinkling than they will for water used in daily activities. The City bills water usage in units of 1,000 gallons. . :. - _.- • .. . � �� .. . - e .- 1 st 10,000 gallons 2.15 21.50 Next 15,000 gallons 2.69 Usage over 25,000 gallons 4.03 21.50 Overall cost er allon .00215 �.. ..- • �: . �� ._ .. « _ .- 1st 10,000 ga'I�ns 2.'.5 21.5�� Next 15,000 gallons 2.69 40.31 Usage over 25,000 gallons 4.03 8.06 93.88 Overall cosf er allon .00347 The two charts above illustrate how the cost per gallon, for water use only,becomes greater with higher usage. The charges above do not include the fixed quarterly fee. Cities adopt a tiered rate system for the following reasons: 1. To promote conservation efforts. 2. To allocate costs appropriately to those who are generating them. Cities construct water systems to meet the capacity of peak watering days in the heat of the summer. In Orono, the peak demand in the summer is approximately 2.74 times the winter demand. A tiered rate system charges more per unit for peak use, thereby allocating the cost of "oversizing"the system for peak days to the peak users. U�iliq-Rute S�u�v Puge 9 Citv of Urono,hlinnesorn D�ce+nber,1009 Overall Seasonal Demand 50,000,000 -- ___. ._ ___ _- _�._ � 45,000,000 - — -' 40,000,000 -----._ __ -- _----- -- i 35,000,000 -- --- __ ------_ --------� � 30,000,000 - - __-_.. --; i 25,000,000 - 20,000,000 — _____.__ _ _. _ � 15,000,000 __ _____ _._____ ___� 10,000,000 - _ --- ---- - ---- --; 5,000,000 --- - 0 -___. April 2008 July 2008 October 2008 January 2009 The above chart illustrates the increased demand during the summer months. The chart below illustrates the user class that is driving the changes in seasonal demand. I 50000 - --- ' 45000 — - I 40000 35000 ------ _____ ! 30000 --- ! 25000 - ------ - - � 20000 ---- -- i15000 --- -- ------ I10000 --_ ___._-_______________ - _. .___ _._.__--- 5000 __ _ �Residential � �� , O . Chevy Chase �I � '�Multi Family � April 2008 July 2008 October January �Commercial � 2008 2009 — � In mid 2008, the Minnesota Legislature adopted an amendment which requires a conservation rate structure to be in place by January 1, 2010, for all metropolitan area public water suppliers who serve more than 1,000 people. A public water supplier must also have a conservation rate structure in place before the State will grant approval for constructing an additional well or for a Utitiri•Rure Studt �'uSe 1�� Citv oj Orono. .hfinneso�ct Derember.'009 request to increase the authorized volume of appropriation. This mandate applies to rates related to water use only. The Department of Natural Resources has provided further guidance that an increasing block rate means that there is a sufficient increase in the rate between the tiers to promote conservation. Specifically, the DNR would be looking for a meaningful increase between the blocks to encourage conservation. We believe that the recommended rate structure proposed complies with DNR guidelines. Proposed Water Rates: The proposed rate structure was designed in order to provide suff'icient resources for projected operating expenses and capital costs and to maintain cash balances where necessary. In 2008, the City currently spends approximately $342,000 in fixed costs such as salaries, contractual, insurance and depreciation. The remainder of the expenses is for water treatment and equal roughly$207,700 per year. Recommended Rate Option: Fixed Charge and 3-Tiered Usage Charge In order to determine the appropriate tier breaks, user and usage data was analyzed. The following graph shows the distribution of residential users. i Residential Usage I I I 90 � 80 �-------- —�--------------------.._------------------ —�---- __. � 70.��..__ .—. _-----__.__...�---__......_._._�_. ----�-- — ---.._---�—_.._.._.__.. N � 0 60 -------.----_--__----------- --- ------________ —_—_--- L NSD �. .__.____ __� _ _�_�.___"__ ' _._�-__._._... O SM1� . ..__..._ . ___.. _ ....._. ._"'_ —,.."_' __— .__....._�...__.._�...... =30 ' .' � ---- __ _— -- '.._.— - - ----_---- _— ------ ! '°� � _ _ �� ? I-� ��_c� �� e�-��_ ._,_— _-------�-- � 0 N 21 31 4i�St 61'11�,81 51,101 It1 12'��15+1A1 151 151 171 191 19+101I211121�231 2N�,251;261j271 M1 291 701 311;321�31�311�St�61 ST1 7E1�1�101�1111N, � i To'To To To�Ta To To To To�To To,To,To To i Ta'�To'Ta Ta�To To i To To i To To To'�To�To�To To To To To i To To,To To Ta io Ta To To To To� i,10 10 30 /0 SO 60 7D 60 90,100 110i110i130 140j1S0 160 170 1W 190 200�210 7l0;Yl0,210 2SO�tA0�2T0 tA0 290 300 710 3t0';3�0 3/0�350 7A0 110 9!0�90/OO N0�/20 170, I Unib PerYear Tier Number of Users in Tier Tier One 294 Tier Two 312 Tier Three 305 The table above shows that 74% of the users are captured within the first two tiers. Unlin�Rure Studv Pa,�e I1 Citv q(Oroito,hlirrnc:sota December.?009 The proposed tiers are: Tier One-Usage to 10,000 gallons per quarter charged at$2.15 per thousand gallons Tier Two-Usage between 10,000 and 25,000 gallons charged at$2.69 per thousand gallons Tier Three-Usage over 25,000 gallons charged at$4.03 per thousand gallons. This tier option produces $254,300 in usage revenues for single family users. This represents 76.6% of overall usage revenues and this user class uses 76.7% of all water usage for the time period under study. This option captures the following usage for single family users %of Use for Sin le Famil User Class Usa e-Units Revenues Tier One 31.6% 25,433 $54,682 Tier Two 20.8% 16,742 44,995 Tier Three 47.6% 38,358 154629 $254,306 The following graph shows the distribution of residential users in the Chevy Chase area. These residents have a much lower water usage pattern. Chery Chase Area Usage i g_ g �_�__—_ — _----------,----_._._.–___.___,.___.____..___��..---_. _.... .__.___.�—� 1__.._—_ ` — ` _— ----- -- —._��_�__--_..� --- �6----__ -- -- -------------- ----. ---------- 0 r ; „5 ---- — ----.��_______�____�___.�____e___._____._�_ �� 0 I x 4....._.__... . �„ . ---�-- -- -------- � 0 iZa--- --� — - - ----- ------____ _._______.___---- --___.__�. �I Z__._ _ _ , --- —"------^ �---.___--�. __ ___..__ � . I , x - -— ----- --_. _— _.__ --____ _ ,. o - —�.� �_._,..�..�..�_� 15 30 IS 60 75 90 105 110 135 150 165 180 195 NO 125 210 Z55 270 Zb5 300 315 330 315 360 37S 390 105 IIO IJS 150 165� I_ Unks Per Year Tier Number of Users in Tier Tier One 15 Tier Two 15 Tier Three 29 The table above shows that 53% of the users are captured within the first two tiers. The proposed tiers are: L'liliry Rule Sh�clv I'c:ge Il Crry of Orono.hiifuresoin December.?01)9 Tier One-Usage to 15,000 gallons per quarter charged at $2.15 per thousand gallons Tier Two-Usage between 15,000 and 25,000 gallons charged at$2.69 per thousand gallons Tier Three-Usage over 25,000 gallons charged at$4.03 per thousand gallons. This tier option produces $21,700 in usage revenues for single family users in the Chevy Chase area. This represents 6.55%of overall usage revenues and this user class uses 6.71% of all water usage for the time period under study. This option captures the following usage for single family users %of Use for Sin le Famil User Class Usa e-Units Revenues Tier One 39.2% 2,760 $5,934 Tier Two 15.4% 1,087 2,922 Tier Three 45.4% 3,195 12,881 $21,736 The cost of purchasing water from the City of Wayzata is currently at$1.12 per thousand gallons for usage, by account, to 10,200 gallons. Usage over 10,200 is charged at $2.41 per thousand gallons. The City of Wayzata also charges a base rate of �16.05 per quarter per account. The overall charges paid by the City of Orono are approximately $18,600 per year. Total revenues generated by the Chevy Chase area cover the usage and fixed costs and a small amount of internal administration. The tiering analysis shows an inflation of 5.5% on this cost over time. Revenues generated from the Chevy Chase area, usage and fixed, would be approximately $25,200, usage and fixed, for a slight net gain of�6,600. And finally, water is sold to the City of Minnetonka Beach at a rate of $2.54 per thousand gallons plus a base rate of $30.11 per quarter for the 15 homes served. These rates would increase by 5%. These rate tier options would provide an incentive for water conservation and would likely provide a buffer to the City for lower usages which would occur during wet weather summers because it provides a constant revenue stream that's available to pay fixed costs. The following table, then, shows the impact of the rate and tier structure changes on residential customers in different areas of the City. The amounts shown in the 2009 column would the total usage and fixed charge that is paid by the resident, which is dependent on where the property is located. Utilin�Rarc S�udv �'��5�: !3 Crn olOrono. .4finn�sv�u December _'009 Average QuaRerly Bill•Water-usaga and m 2008 2010 2017 2012 2013 2014 2015 2016 Navarre Area RBsidanGal Average User(10,000 gallons per quarter) $ 55.51 $ 45.50 $ 48.23 $ 51.36 $ 54.96 $ 59.36 $ 64.11 S 69.23 High User(27,000 gallons per quarter) $ 98.69 $ 93.88 $ 99.51 $ 105.98 $ 713.39 E 122.47 $ 132.26 $ 142.84 Average Quarterly Bill-Water-usage and m 2009 2010 2011 2012 2013 2014 2015 2016 Highway 12 Area Residentlal Average User(10,000 gailons per quarter) S 46.32 S 45.50 5 4823 � 51.36 $ 54.96 $ 59.36 $ 64.11 $ 69.23 High User(27,000 gallons per quaAer) a 106.50 $ 93.88 $ 99.51 5 105.98 S 113.39 $ 122.47 $ 132.26 S 142.84 Average�uaMrly 9i11-Wate�-usrp�a�m 2009 2010 2011 2012 Y013 201t 2015 2016 Chevy Chaee Ana R�sidential Average User(10,000 gallons per quarter) $ 37.32 536.50 $38.69 $41.20 $44.09 $47.62 $51.43 $55.54 High User(27,000 gailons per quarter) $ 82.20 $ 82.19 $ 87.12 $ 92.78 $ 99.28 $ 107.22 $ 115.80 $ 125.06 The average 10,000 gallon residential water user would see a $10 decrease if they lived in the Navarre area and a $.82 decrease if they lived in the Highway 12 area. The resident who used 10,000 gallons and lived in the Chevy Chase area would also see a $.82 decrease in their quarterly bill. Commercial and Multi-Family Rates/ Tiering Tiering water rates can promote conservation by residential users. Most water usage above the average amount consists of non-essential activities, such as over-watering lawns or maintaining swimming pools. Whereas consetvation is the consideration for structuring rates for residential users, economic development is potentially impacted by tiering for commercial users. An increasing block tiering structure could make already efficient,but high volume commercial users, less competitive. Taking these considerations into account, we have proposed that commercial properties have a three tier rate structure, but also that the tiers are tailored for commercial usage. Most of the City's commercial users use more water than residential users. There are a handful of high commercial users. For commercial users, the tiers would be as follows: Tier One: All usage up to 50,000 gallons per quarter Tier Two: Usages usage between 50,000 to 150,000 gallons per quarter Tier Three: All usage over 150,000 gallons Of the City's 41 commercial users, 28 fall into the first two tiers, and the remaining 13 fall into the third tier. The table below shows a sample quarterly water bill, including usage, for a commercial user. L�r;lin�Rcne Sttrdi• Puge ld Cin�o1(h•ono. rWi�uie.soia Decemher.?009 Average QuaReriy Bill-Water•usage and m 2009 2010 2011 2012 2013 20l4 2015 2016 Navarre Area Commercial Average User(75,000 gallons per quarter) S 220.61 $ 198.69 $ 210.61 $ 224.30 S 240.00 $ 259.20 $ 279.94 $ 302.33 Average Quarterly Biil•Water•usage and 2009 2010 2011 2012 2013 2014 201'J 2018 Highway 12 Area Commercial Average User(75,000 gallons per quarter) S 276.42 � 198.69 $ 210 61 5 224.30 $ 240.00 $ 259.20 $ 279.94 $ 302.33 Water used in multi-family units is primarily used for everyday needs such as cooking and washing, or essential activities. Taking this into consideration, similar to commercial use, we are proposing a three tier rate structure for the one multi family unit in the City. These tiers are the same as commercial and would be as follows: Tier One: All usage up to 50,000 gallons per quarter Tier Two: Usages usage between 50,000 to 150,000 gallons per quarter Tier Three: All usage over 150,000 gallons Average Quarterly BiII�Water-usage and m 2009 2010 2011 2012 2013 2014 2015 2016 Highway 12 Area Multi Family (350,OOG gallons per Guarter) $1,249.92 S 1,206.50 � 1,278.89 $1,362.02 S 1,457.36 S 1,573.95 $ 1,699.86 S 1,835.85 This user would see their quarterly bill drop by $43.42 per quarter for water usage, including the fixed charge. Recommended Water Fund Cash Balances Operating Reserve We recommend the water fund carry a minimum cash balance for operations of an amount equal to 6 months of operating expenses including depreciation plus annual debt service and a portion of capital costs. Cash balances are available to accommodate fluctuations in revenue depending on weather and higher than anticipated operating expenses and for unexpected expenses, such as main breaks. Capital Reserve The remaining cash balance should be held for long-term replacement of the system, which will not be able to be funded with growth. The model maintains the ending cash balance over time. The recommended measure of a goal for the capital portion of cash reserves is the target working capital as outlined in the City's annual financial report. The graph below demonstrates the target capital reserve balance compared to actual capital reserve balance of the water enterprise fund over time: C:rilrrn Rure Sru��• �'��5�l-' C'irv o1 Or•nrio.;ti/innesorn Decernhe,•.'009 Water Fund Capital Cash Reserves -� 1,400,000 — � 1,200,000 � 1,000,000 ' I ! 800,000 I " 600,000 � � 400,OOa � ; 200,000 � � � p , � 2010 2011 2012 2013 2014 2015 2016 ■Cash Balance Goal 0 Cash Balance i ' Urilin�Rate Snrdv Puge 16 Cih�ojOro�ro. hlimresotu December.?009 Sewer System The City of Orono participates in the Metropolitan Council Environmental Service's sanitary sewer system. The City does not maintain its own sanitary sewer treatment facility, but is responsible for certain capital improvements and operating costs. Sewer Rate Structure The current rate structure is $105.50 per quarter for residential units. Commercial units are charged a rate of$3.98 per thousand gallons of water used plus a $9.94 per quarter connection fee for each connection. There is no current mandate to impose a conservation rate structure to sewer use. Pro-Forma Anafysis Assumptions Sanita Sewer Utilit Growth and Utility Usage No new residential connections, The estimated usage for the existing residents is anticipated to be the 2008 usage levels for commercial accounts and the number of residential accounts are expected to remain static. O eratin Ex enses Cit ex enses increase 3% annuall Capital Expenses Costs of improvements are inflated 5%per year. Future total capital improvements from 2010 to 2016 are estimated at an inflated value of$3.9M. Rate Structure Currently residents are billed year-round based on a fixed quarterly fee of$105.50. Commercial users are billed a combination of a flow charge and a fixed fee. Utility Rute Sfucfv Page/7 C'itv nJ Orono. A-/inne.�ora Deeemher•.JO09 Proposed Sewer Rates: Recommended Rates— Based on Existing Rate Structure Sewer charges would continue to be based on a fixed quarterly charge for residential users and based on flow for commercial users. There are a significant number of residential sewer customers who have their own private well, so its not possible to meter water usage and base the sewer charge from that. We are not recommending a rate structure change, but rather are recommending an increase in the rate in order to provide for operations, capital and projected debt. Average�uaRerty BalSewer Z009 2010 3011 m12 201� 2N� 2015 2016 Fixed Quarterly $ 105.50 $ 109.72 $ 114.11 $ 118.67 $ 123.42 $ 128.36 $ 133.49 $ 137.50 The above represents a 4%increase in the base quarterly charge. Utility users view their water and sewer bill in total and we attempted to control the overall change in the combined bill for average water/sewer residential and commercial users. The analysis below is based on a residence in the Navarre area. Average QuaReriy Bill-Water and Sewer 2009 2010 2011 2012 2013 2014 2015 2016 Average User(10,000 gallons per quarter) $ 161.01 $ 15522 5 162.34 $ 170.04 � 178.38 � 187.71 $ 197.60 $ 206.73 High User(2T,000 gallons per quarter) $ 204.19 $ 203.60 S 213.62 $ 224.65 $ 236.81 $ 250.82 $ 265.75 $ 280.34 Recommended Sewer Fund Cash Balances Operating Reserve We recommend the water fund carry a minimum cash balance for operations of an amount equal to 6 months of operating expenses including depreciation plus annual debt service and a portion of capital costs. Cash balances are available to accommodate fluctuations in revenue depending on weather and higher than anticipated operating expenses and for unexpected expenses, such as main breaks. Capital Reserve The remaining cash balance should be held for long-term replacement of the system, which will not be able to be funded with growth. The recommended measure of a goal for the capital portion of cash reserves is the accumulated depreciation of assets as outlined in the City's annual financial report. The following graph demonstrates the projected capital cash balance related to the target working capital amount: Urilit� Rute Snulv P�+g�lx City uf(h•aru. ,�4/nr�re�oru Dec•emher, ?OQ9 , Sewer Fund Capital Reserves � I 2,500,000 -- - ' 2,000,000 � � I' I ! 1,500,000 f � , 1,000,000 i ' � � 500,000 E ', � ; � O J 2010 2011 2012 2013 2014 2015 2016 ■Cash Balance Goal OCash Balance � Utility•Rute Sludv PaKe 1 y CrtY ojOrato,,�linnesota Decemher. 2009 Storm Sewer System Storm Sewer revenues are based on a fixed quarterly fee based on the type of property being served. The quarterly charge is established to pay for the cost of operating and maintaining the system. Below is a chart which demonstrates the breakdown of the types of users in the storm sewer utility by Residential Equivalent Unit. The City bills storm sewer to commercial property and residents who have water service, those on sewer service only and those who have private well and septic. Commercial properties represent a higher proportion of users in comparison to water usage, because commercial properties have more impervious surfaces, such as parking lots, that direct storm water through the storm water system and into lakes, rivers and streams. Percentage Breakdown of Storm Water Residential ', Equivalent Users �2% ��. ....�.,: �, , '��n ' f' �I `;i�� I ' `��ti��i� �r�'�� ;a�,. � - 'O Commercial $$% ■Residential Proposed Storm Sewer Rates This proposed rate structure shows an increase of approximately 10% for all accounts based on residential equivalent unit. This fee needs to increase at this rate for several years. The quarterly storm sewer fee would increase by $1.03 to $11.33 per quarter. The full schedule of proposed rate increases is shown below. Utiliry Rute Studv Page?0 Cen�ofOro�ro.,4finnesota Decernber,3009 Proposed Storm Water Rates per Quarter sze.00 ---- -- — S2o.o� i szo.00 ------ _—. _.___ __.__�__�±e.z5 . , s+s.ss ....----._._..$'1.3_Z]._.._$15.08 ; $15.00 ---____. ___ _ _.__ -. $12.46 i $10.30 511.33 �. $10.00 � --___.._ __...__ __..._ — --- -- -�� I $5.00 , -- .___� _- - - --- ; $0.00 —� --- . 2009 2010 2011 2012 2013 2014 2015 2016 Cities across the state will be facing pressure to generate more revenue to fund storm water systems. The Clean Water Legacy Act provided funding to test and develop plans for Minnesota's polluted waterways. These plans may result in new unfunded mandates for local governments. Our experience with other cities indicates that most have not yet planned for significant improvements to their storm water system, and their quarterly fees are established at a level that will only pay for the annual operations and maintenance of the storm water system. As more cities undertake planning for capital improvements to their storm water systems, we expect to see higher storm water utility fees across the metro area. Future Debt for Capital Improvements We are not projecting any bonds to be issued for the currently proposed capital improvements of $1.13M expected between 2010 to 2016. As a result, there is a great deal ofpressure to increase the quarterly rates in order to be able to pay for the projects with cash. Bonds could be issued which would smooth out the rate increases necessary over time. As cash balances and project costs are evaluated in the future, the amount of debt and the term of debt can be re-evaluated. Cash Balances The rates shown above, with the scheduled capital improvements, provide the following cash balances. U/ility Rate Study Page 2! Citv n/Urvno. Afinnesotu December. 2009 Stortn Water Ending Cash Balance 400,00� � — �,'; 350,000 E I 300,000 " — 250,000 � _ __ __.�- ------ ___ _ i _ _ 200,000 ' ' __._ _ — --- I � 150,000 j I /� ___. _ . � 100,000 --- — , 50,000 f . p,�. ,.,,, w .,� j , � : -..2 � . __.. �. ...��z. , .: 2010 2011 2012 2013 2014 2015 2016 Utrfitv Rute Studi� �'�jS��2 Crtv of Ororro,hfi�rnesora December.?009 Schedule of Future Anticipated Rates Water Fixed Fees 6.00% 6.50% 7.00%0 8.00% $.00°!0 $r . _, UserClass 2010 2011 2012 2013 2014 2015 2016 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Residential $24.00 $25.44 $27.09 $28.99 $31.31 $33.81 $36.52 Commercial $24,00 $25.44 $27.09 $28.99 $31.31 $33.81 $36.52 Minnetonka Beach $31.31 $33.19 $35.35 $37.83 $40.85 $44.12 $47.65 Chevy Chase $15.00 $15.90 $16.93 $18.12 $19.57 $21.13 $22.82 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Water Usage Fees Usage Gallons 2010 2011 2012 2013 2014 2015 2016 Rate Increase 6.OU°/u 6.50% 7.00% 8.00°0 8.00% 8.00°io Tier 1 $?.15 $2.28 $2.43 $?.60 $2.80 $3.03 $3.27 Rate Increase 6.00% 6.50% 7.00% 8.00% 8.00% 8.00% Tier 2 $2.69 $2.85 $3.04 $3.25 $3.51 $3.79 $4.09 Ratr Increa�e 6.00"o G.50",U 7.003o R.00°�o R.00°��, S.O(}".o Tier 3 $4.03 �4.27 $�.5� 54.87 $5.26 $5.68 56.13 1�1'tt�nka Bz�Ch fi.009�, 6.�0°i'o 7.00°�0 8.00°0 8.UU`io B.Oi)`o ' Rate :�2,67 �'.R3 S3.i11 $3.23 $3.48 $3.76 �4.06 � i I U/rli[v Rate Study f'uS�Z3 Citr ojOrono.tiliiviecotcr Decensher. '009 Sewer Fixed and Usage Fees Fixed Charges 4.00% 4.00°'0 4.00°io 4.00% 4.00°'0 4.00% 3.00°o 2010 2011 2012 2013 2014 2015 2016 Residential $109.72 $114.11 $118.67 $123.42 $128.36 $133.49 $137.50 Commercial $1034 $10.75 $11.18 $11.63 $12.09 $12.58 $12.95 Chevy Chase $109.72 $114.11 $118.67 $123.42 $128.36 $133.49 $137.50 Private wells $109.72 $114.11 $118.6'7 $123.42 $12836 $133.49 $137.50 L'rilin�Rate Snrdv PuKf'� CitvofOrono,Miiuiesora Dece�nber,2009 Recommendations The City of Orono has managed its utility funds well. The need to upgrade, maintain and expand the water, sanitary sewer and storm sewer utility systems over the next several years will introduce new financial pressures along with the need to maintain adequate cash balances. The rate study indicates that water rate increases are necessary in 2010 to maintain cash balances and pay for capital improvements and debt. Steady rate increases will be needed for all three funds beginning in 2010, to keep pace with operating costs and capital improvements. While this analysis proposes the use of debt to allow for steady and predictable rate increases, it is not a debt plan. The City should review whether it has sufficient cash to pay for capital improvements prior to issuing debt. As with all other bonding decisions, the City's decision to issue debt for any given improvement will be based on many factors, including the City's cash balances, rating, and other financing needs. Summary of Recommendations • Adopt rates and user tiers as recommended • Update the Utility Rate Study periodically • Establish target Operating and Capital Reserves o Operating Reserve: six months,plus annual debt service and capital o Capital Reserve: 10%-15%of accumulated depreciation Gtrlitv Rute Stuclv Page 25 Citr q/'Orono. Ali�r�recv�a Decemher Z009 Appendices to this report follow: Appendix A Comparisons to Other Cities' Rates Appendix B Water Utility Projections Appendix C Sanitary Sewer Utility Projections Appendix D Storm Sewer Utility Projections Appendix E Capital Improvement Plan for Water Appendix F Capital Improvement Plan for Sanitary Sewer Appendix G Capital Improvement Plan for Storm Sewer Appendix H Proposed Residential Rate Tier Options G?ilitt�Rule Studv Puge 16 Ciry��fC)�'rnio, hfi�mesotn D�cernber.3U09 Append ix A Comparison of Rates in Comparable Cities Using proposed 2010 rates with a quarterly usage of 10,000 gallons . . . . Medina-2009 $34.65 �28.90 $55.44 $46.20 �165.19 Orono-proposed 2010 $24.00 $21.50 $109.72 $155.22 Wayzata-2009" $16.05 $19.91 $27.75 $36.10 $99.82 Long Lake-2009" $18.90 $31.50 $35.40 $85.80 Based on a residential quarterfy use of 10,000 gallons '-non DNR cromplrant rates-commercial "-non ONR compliant rates-residenlial and commercial Comparison of Water Billing Long Lake-2009" Wayzata-2009' ' Orono-proposed 2010 Medina-2009 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 �Water Minimum ■Water Volume '-non DNR compliant rates-commercial "-non DNR compliant rates-residentia/and commercial Utrtiry Rate Studv CiN of Orono. Mimtesoh� December.?009 Comparison of Sewer Billing Long Lake-2009"' � ' � � I � W ayzata-2009' . Orono-proposed ' 2010 M ed i na-2009 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 ��Sewer Minimum ■Sewer Volume '-non DNR compliant rates-commercial "-non ONR compliant rates-residential and commercial Comparison of Total Water and Sewer $250.00 $200.00 ------_�-- - --- —j ( $150.00 � -------- _ __ __ _ _ _ — --- ---;' I $100.00 _.__ _----- - - --__ . ,! � ' $50.Ou + _ ___ __ . _ _ �---' I —--L.��____ ___.�—; $0.00 �-- — Medina-2009 Orono-proposed Wayzata-2009' Long Lake-2009" 2010 0 Water Minimum ■Water Volume ❑Sewer Minimum ❑Sewer Volume '-non ONR compliant rates-commercial "-non DNR compliant rates-residentia/and commercia! U��litv Rure Shrttv Cirv of O�•onn.Alinneso�a December. _'U09 Appendix B Water Utility Projections G"�ilitp Rure Srudy Citi o/Oro�ro. :blbrne.sota Decemfier. '009 - - � q'� - - - � g• �q-• - slmc wu 8m1"�3 ZSG'OlCit ili�618�E 195'SSL'f LLO'ZIG'f 6SC'E69'i S{C169'E 81t't6 1 fcZ�UIL't LSC518�f tL 6S8'f t thSCC 8ft'USCf fZ2`GIS'f 195'SSI�f CLOZICti 6Sti�ti69'ti 56L'169`ti 81t'i69�ti £ZZ�OICti E9E�65L'ti £L8�6SR'f t9£�65CC 8L6�OSL�£ S9R�69V'ti s�asse�xc8mw�tb� 6ZL'I� Z99�i9 t'8Y�tib 81C81 til9'1 ItiL9't) (i08'9U �orrrrr (411'Ft1 OIi�S01 SZ6'E ELS'08L *'�O11�I'w!�°�o8�4°�N 0 0 0 0 0 0-0 Ino�a�{suen Su4�adp m�a�sueil8m�e�dp 6ZL'16 Z99'£9 484'£6 8IL'81 £19'I 1tiL9'I1 (S08'91) �041'tt) 1911'tY) 015'SO1 SZ6�ti £LS`OSZ �sso�)awoam�aN 8CI'SZI S16�SZI SLSbfI 006`SZI LS9�9Z1 L8ti Sfl 989�SZ1 OOti'G01 # 66Z�IY 6S8`IOZ 85l`611 68S'lSf anuon�a 8w3eudo-uou�e�oy SZ9'S 8L5'G 95U'L LZ£�01 snoaue��axiW �esods�p uo sso� IOL9L) �WL'IU �ti0h`IU 100ti�tiU �OOS�£U IOtZ�SU asuadxa�saia�u� 606'41 9L9'41 L£8'GI 199`CI 6ti1'91 669'6Z L19'ZZ 000'If DLO'L6 OLS`89 589'96 GIL'CZ sSuwea�uauqsanu� GEL'OZ G£L'OZ 6£L`OZ 6EL'OZ 6£L'OZ G£L'OZ G£LbZ cwawssassa�e�r�ds IH9'L 18h'ZIZ aa�uoq�ouuo� 000'O6 000'06 000`06 OOO�W 000'OG 0(Nl'W 000'06 OOO�OG SZL'I£I Ll6'8L ZOti91l �a�lem�i�on�o»oleM - (dxa)na�3w�eiado uo�y 1816'f�) �lSCI91 (Z60'LR) 1Z89'b0U �61Z'SZI� �1190'CtiU Ilbh'ZtU �Oh6'E511 (SIh�SR1 (hPt'�N>I litiZ'S111 191(1'IL) (sso�)awoowflunmadp 890'S19 ZOS`S99 6I1�9S�9 OOf�LZ9 GZOG09 WZ`16S Ot0'ILS 06Y`8Z5 LGL�GrS G19'L94 h9D'88h 90L'66£ asuadxa8uqe�clo�e�oy 0 0 0 0 0 0 a o 0 0 0 0 16C£I 06f�£I 000'EI IZ9`Z[ ESZ�ZI LG8�11 OSS'II OZ4�£I ILS'9T SGG'Zl L00'fl 65S`91 �xPO 66Z'91 DZR'SI £9C'SI 91G'61 ISh'41 090'61 059'til OS9'til 059'fl OSI'£I OSI`£1 OLL'ZI aweinsu� S10`YI OI9`til ti1Z'£I GZS'ZI SS6'ZI ZGO`ZI OtL'll OOb'll Ot'0�11 059'G 006'01 059`6 sa8�eya unupt+ tiSl`OIZ Z£0`MIZ 060'861 OZE�Z61 8IL'981 OSZ`ISt 000'9Ll OOS`891 OIS`991 Sfl'ZL LZS'6ti S6L�GZ ��°g��°1eW 6Z5�56 itG Z6 I60�06 814�L8 ZC8�t8 OOt`Z8 000�08 OZ9'08 819�SL 919`08 919'OS Z16'09 uouei�aidav 6S5'G8 9bG'98 £16'b8 SS6'I8 895�6L OSZ'LL 000'SL OOO�IL 9Z8'OS Ofl'ZL Z90�59 8Z9'GS �N!I!U1 68Z'£6 TZO`ZY 008 06 I 19'6£ 85t 8£ 8££�L£ OSZ'9f OSZ`L£ L59'LZ LL6'99 68f'9Z1 6h0`Eb axre�w�wew pue 9uueiadp 998'41 ££6�h1 £I0�6I 609'£I SOZ'£1 hZ8'ZI OSh�ZI 000�01 tiL0'G 56L'II 616b1 ELS�SI saainus�euo�ssa�o� Z95�IZ f£6�OZ SZti'OZ £tiCGI AS('61 009'SI 000'SI 000'S1 0 6L9�6 6ti1'91 L8h�0£ �al¢n�paseqamd Slb'99[ 89S'191 Z98'9S1 £6Z`ZSI 858'L61 ISS'tibl OLf'G£1 009'L01 158�561 bGG'811 SSZ'ZII S8Z'IZf �auuos�ad sasuadxa 6h0'Z59 OSG£09 LZ0�655 819�L15 SSCti8h 0£Z�4S6 61S�8Z6 OOO�SLti Z8ti'1H6 SLZ'IL£ IEZ'fLti 0G9�8Zf sonuono�9uue�ado�e�o,L 0 0 0 0 0 0 8h0'£L '"PO 6b0`ZS9 OSL'til� LZO'6SS 819'Ll5 SSL`£8b OtiZ'trS6 GIS'HZ6 000'SL£ 6titi�IG£ SLZ'ILf IfZ'£Lti 069'8Z£ sa�inrx�o,�saAieyJ sa�uanay 910Z SIOZ tIOZ £IOZ ZIOZ IIOZ OIOZ 600Z SOOZ, LOOZ 9000[ S(H)Z pa»a o� ta pag t� s�uouu�e�S Ir.iouem�iad palsanbaa . . 9'e00'C %OO�E %00�£ %00�£ °o00'ti %00�£ %OO�f as¢ai�w am�maadx3 °e00'f %OO�ti %00'£ %00'E %00�£ %OO�ti %OO�ti ase��manuanai��p P�d 10�eM spun��4!�(1 oump 30�Gp 60YIL� LtYOZL 91A�ffL 6Z8'l66 ZLO'f88 9IYL08 ffT'ZfZ'I f9$'Ofl`f f6L'810'I L6L�LOZ'I FPO'9Z1'! ZOZ'9S1'1 ysu7wpu;� LlNOZI 91R'tikL 6ZRIG6 ZLIItiSR ')Zh'LOB Fk:�ZtiZ�I l9A�UC1�1 ktd9il�l LGL�LOiI k40'9Z1�1 ZOZ'951�1 ORO'9U1�1 4`R'Au�umAaH ZL6�OL� (6Lt�f1) (f10�4iL) LSL`Y01 S69�tiL (YOp'tiZFI ILL101 OZS'/ (M0�6tU b5L't8 (651'Of► ZZI`Of ^bd4RJi�N (IYd`�a•C S��a,w%S'Sl-sP°O8 GIOZ (IXd'siea,(S�iano�s s}spuoy g I0Z U�Sd'��SI�^0%5 5}spuog LIUZ U�Bd's�ea.(S�iano%S Sl-spuoH 910Z 0 (l�gd'siea,C S��a,�o%S S�SP°O9 S10Z 0 0 118d'�a�SI��^o%S'S�sP°O9 bIOZ IStSbLI ISIS'OC) ISIS'OL) (�7gd's�ea�Cs��anoo�ss�.spuoflElOZ (SOS`98) (SOS'98) ISOS'981 �SOS'7R) (I�Bd'��SI�a^�%S'SF6p��fl i[OZ 0 0 0 0 0 (t�8d's��SI��^�%5'Srspuo�IIOZ 0 0 0 0 0 0 Q�Bd�yga,S S��ano geShsp�B 6002 0 0 0 0 0 0 0 II�Nd'��SI�ano�s�-spuofl 8(�Z spuog 1p£['ZZt) (Z05'ti£) (95Z'SSZ) (£SCL09) (GIZ'89R1 (SL0�6Lt) 1p59'SS) (OOh�RfU (8CR t01) (IG8'SZI 18fZ'OL£� �epdeJ 0 0 0 0 0 0 0 0 0 0 0 ��lS°�,L 60F'L'I 9L9'bl L£8'6l 199'LI 661�91 6t9`6Z L19'ZZ 000'Iti tL0`LF OLS'89 S89`90 61G'LZ auioouiu�xulsanu� 0 100h�85I) spmy�ay�o wo�sa�uenpd 6ELbZ 6fLbZ 6£LbZ 6£L'OZ 6EL'OZ U 8Z9'S 8L5'L 9S0'L LZ£'01 snoue��axiw OEI'ZZf OOS�LOL OOti 898 ��p�o8 0 0 0 0 0 0 (OL9'L) IOOL'IU IEOh�IU (00£'tiU �OOS`fU 106Z'Sll asuxixa�saia�u� It19y'I£) (0991£) 1099'IE) (099'If) 1099'I£) (099'ltil (099'IEl 10991f) �dllow�w.Ceday 000'OG 000`Ob 000`06 000`06 000'OG 000�0G 000'W 000'O(, LZti`ltil LIG8L LSS'SLI saa��e�aa»a.Hoy 0 0 0 0 0 0 0 0 I89'L 0 IS6`LIL 5��3°O1»�wpJ G£L'OZ 6£L'OZ 6tiG'OZ G£LbZ 6EL'OZ 6£L'OZ GtiL'OZ 0 swatussasse Ig��S 6GZ�£L 991'Iti (G41'Ls) 08G'OS sa8ueyo�ay�p 6ZS'SG ZhCZ6 IYO'06 816'L8 ZC8`66 004't8 000'O8 OZ9�08 819'8L 919'08 919'08 Z16'09 uoueioaidad �Rlt�tif) (tiSL'19) IZ60'L81 (ZR9'60T1 (bLZ'SZU (090'LtiU (508�91) 106h�£SII ISIh�58) (ttti'9G) Iti£Z'SII) 1910'IL) �sso�)awoou�fluneiadp �o�`t�� 910Z SIOZ t10Z fIOZ ZIOZ IIOZ OIOZ 6007. 800i LOOZ 9000Z SOOZ palao o� �a.png la pn� sp�awate�s�euuew�iod palsanbaa %00�£ %00-E %00'f °b00'£ %OO�ti %IX1�E %00�£ asea.iau�aanupuaAx�l %OO�f %OO�E ?b00'£ 9e00'f %00'£ %OO�E %00'ti aseai�u�anuanai�ay�p pun�i��eM spun�Agl�fl ��03°�!J Appendix C Sanitary Sewer Utility Projections Unlin•Rute Srudv Cirv o�Ornrro.r�/inrresora L7ecemher. ?009 i City of Orono Utility Funcis SrwerFund Other revenue increase 3.00% 3.00% 3.004% 3.00% 3.00% 3.00%. 3.00% F,xpenditure increase 3.(10% 3 00% 3.00°0 3 00% 3.00% 3.00% 3.00•/. MCES expenJiture increase 5.50% 5.50"-o SSO% 550% 5.50°% 5.50°/. Requested Per Pinancial Statements Dudget Dudget Projected 2005 ?OIX� 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenues Chargesforsernces SRR,599 917,743 9i4,627 944,892 975,000 1,056.793 1,099,064 1,143,027 I,IRR,74R 1,236,298 1,285,750 1,3?A,322 Other 0 0 0 0 0 0 Totaloperatingrevenues 888,599 917,743 954,627 944,892 975,000 1,056,793 1,099,064 1,143,027 1,188,748 1,236,298 1,285,750 1,324,322 Expenses Personnel 194,190 194,978 168,264 211,751 205,870 224,830 231,575 238,522 245,678 253,048 260,640 268,459 Sewerdisposalcharges 304,058 294,285 359,R05 330,713 341,390 341,360 360,135 379,942 400,839 422;885 446,144 47Q682 Professional services 9,315 28,836 2G,807 17,701 25,700 25,700 26,471 27,265 28,083 28,926 29,793 30,G87 Operating and maintenance 13,576 14,047 21,880 4,75y 16,800 16,800 17,304 17,823 18,358 18,909 19,476 2Q060 Utililies 26,935 26,661 29,153 36.719 30,000 30,000 30,900 31,827 32,782 33,765 34,778 35,822 Depreciation 2?8,371 2?6,410 �31,140 228,6�4 235,000 240,000 ?47,200 254,616 262?54 270,122 27R,2�6 ?86,573 Maintenance 70,177 142,627 129,803 168,793 155,500 163,000 167,890 172,927 178,115 183,458 188,962 194,631 Admin charges 26,780 28,810 26,780 29,880 30,800 31,720 32,672 33,652 34,661 3�,701 36,772 79,87� Insurance 11,226 9,850 8,850 9,850 9,8�0 9,850 10,146 10,450 10,763 11,086 11,419 11,761 Chher 24,457 21,510 14,946 19,350 47,650 50,271 53,036 Si,953 59,030 62,277 65,702 Totaloperatingexpensc 909,085 988,014 I,017,428 1,038,790 1,070,260 1,130,910 1,174,563 1,220,060 1,267,486 1,316,930 1,368,486 1,422,251 Non operating rev(exp) Connection fee 231,871 6,244 Special assessments 57,041 I65,997 15Q2�3 12,396 15,368 15,368 15,368 15,168 li,368 15,368 15,368 Invesimen�earnings 49,391 96,122 140,557 1IQ065 50,0(N) 51,510 46,089 40,343 35,966 31,135 25,815 20,199 Amorti�tionofcredits 9,138 9,138 lnterest exrense Loss on disposal Miscellaneous 25,982 2G,ISG 83,291 63,717 30,000 30,000 30,U00 30,W0 30,000 30,000 30.000 30,000 "1'otalnonoperating 373,423 297,413 380,335 186,178 80,000 96,878 91,457 85,711 8(,334 76,503 71,183 65,567 NMimomc(loss) 352,93� 227,14? 317,534 92,280 115,2G(1► 22.760 15,959 8,679 2,597 (4.130) (11.5531 (3?.76�1 OperatingtransCers (11,7601 111,310) lI1.300� (11,3001 (11,300) 111.3W1 (11.300) (11,30(Il (11,30D� (11,300) E3eginnmgnetassets 12.411.1�R 12.752,375 I'�,968,207 13,274.MI 12.968,207 1294I.G-t7 12,953.1(.)7 12.957,76G 12955,141 1�946,4i1 12931,011 1?919,�{>8 Endmg ne[assets I2J52,375 12 9G8,207 13,174.Ja I 13.355A21 12.941,b77 12.953.107 12 9S7.7b6 12 455.144 12,946.441 12.931,01 I 12 919,458 12.887.096 CiTy of Orono Utility Funds SewerFund ' (Rher revenue increasc 3.00% 3.00% 3.00°4 3.00°/ 3.00°. 3.00% 3.00% Expendiwre increase 3.00°/ 3.00°/, 3.00°i 3.00% 3.00% 3.00% 3.00°/ MCES expenditure mcre25e 5.50°% 5.50% 5.�0% 5.50% 5.50% 5.50°% Requesred Per�mancial Statements Budget Budget Projected 2005 200G 2007 2008 �009 2010 2011 '_'012 2013 2014 2015 201b Cash flow Operetingincome(loss) (�0.�78G1 170.2711 161,801) �93,89R1 (95�(�l (74,117� (7i,498� 8,679 2,597 (d.130) (11,5531 (32.36'1 Depreciation 228,371 226,410 231,140 2?8,624 235,000 ?40,000 �47,�00 254,616 262,254 270,122 278,226 286,573 Otherchanges 6,R16 54,101 (77,398) 56,931 Interestreceived 48,255 95,479 137,389 1IQ065 0 Connection fees 231,871 0 6,244 0 Special assessments 18,329 39,807 �5,980) 12,396 15,3G8 15,368 15,368 I>,368 15,368 15,368 t>,368 Bond proceeds 1,350,OW BonJ repayment 0 0 Transfers 111,760) (11,310) �11,300) (11,3001 (11,300) (11,300) (11,300� (11,30(1) (11,300) (11,300) 0 0 Other 25,982 26,156 83,291 63,717 Capi[al (117,3871 (23d,5581 (t&3.'=2�) 1107,0991 (JAIA(H11 14b31)5(U (48G,2031 (>10.>13) (�36,033) 1562,&301 (9�13.757) Bonds: 2010 Bonds{5%over 15 years,P&1) 0 0 0 0 0 0 2011 Bonds{5%over IS years,P&I) 0 0 0 0 0 2012 donds-(S.SYo over IS years,P&I) 0 0 0 0 2013 Bonds(5.5'/.over I S years,P&11 0 0 0 2014 Bonds-(5.5%over IS years,P&I) 0 0 2015 Bonds{>.SY over l5 years,P&I) 0 2U16 Bonds-(SS%over 15 years,P&I) ZOl7 Bonds-(5.5%over 15 years,P&I) 2018 Bonds{5.5%over t 5 years,P&I) '_'019 Bonds{5.5%over IS years,P&I) 20?0 Bond.s{5.5•/over I S years,P&I) [ieginnmb cash I 91 L247 2.321.238 2.447.052 2.S63,d 14 2A47 Oi2 2.57>.492 2.304,473 2.017,162 1,798.322 1.556.729 1.2�,7i I IO09,951 finJingcash 2,321,238 2,4i7.05? 2,563,414 2,822.850 2.575A92 2,304,44J 2017.162 1.798322 1.556,729 L290,75I I,OOv.9>I 1,6RG,773 Appendix D Storm Sewer Utility Projections Uriliry Rure St�a(y Citv oJ'Ororru, h/inneso�a Decernbe�•.3(J09 � I City of Orono Utility Funds _ Storm Sewer Fund Other revenue increase 3.00°'0 3.00% 3.00% 3.00% 3.00°-0 3.00% 3.00!% Expendi[ure increase 3.00°0 3.00% 3.00°% 3.00% 3.00°/ 3.00°% 3.00�io Requested Per Financial Statement�c Budget [�udgel Pro�ected 21N}5 2(106 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenues Chargesforservices 350.809 162,230 495,497 159,242 145,003 159,5(W 175,454 193,000 212,299 233,529 256,882 282,571 (hher 0 0 0 0 0 0 Totaloperatingrevenucs 350,809 162,230 495,497 159,242 145,003 N 159,504 175,454 193,000 212,'299 233,5�9 256,882 28'_',571 Expenses Personnel 4�,239 19,679 20,222 1�,351 12,110 I?,170 1?,535 12,911 13,298 13,697 14,108 14,532 Professional services 1,376 21,081 17,415 42,2(H� ZI,100 32,000 3�960 33 949 34,967 36,016 37,097 38,210 Operatingandmaintenance 14,577 17,357 13,210 I,IR6 I8,000 18,000 18,540 19,096 19,669 20,259 20,867 21,493 Depreciation 2,892 16,426 18,623 ]8,622 19,000 20,000 20,600 21,218 21,855 22,510 23,185 23,881 Maintenance 13,689 3,922 38S 7,340 11,700 11,700 12,051 12,413 12,785 13,168 13,56q 13,970 Other 12,271 ]0,789 10,433 11,280 11,780 2Qt00 20,703 21,324 21,964 22,623 23,301 24,000 Totaloperatingexpense 90,044 89,254 80,288 92,985 93,690 # 113,970 117,389 120,911 124,538 1�8,274 132,122 136,0$ti Opentingiocane(loss) 260,765 72,97G 415,21M 66,257 51,313 # 45,53A 58,065 72,089 87,7b1 1(K,255 124,76D 1J6,4�4 Non operating rev(exp� Tnterest income 4,609 7,711 18,162 28,432 9,2&t 7,735 5,384 4,117 3,887 4,376 3,938 Intergovemmental Otherrevenue 250 323 Total non operating 4,6U9 7,711 18,412 28,755 0 # 9,284 7,735 5,384 4,117 3,887 4,376 3,938 Netincome(loss) 265,374 80,687 433,6'_l 95,012 51,313 # S4,818 65,800 77,473 91,878 109,143 129,136 ISQ423 Operaling transfers in Operatine transfers out 0 0 0 0 0 0 Ha�inninR rctaincd carnings �I8,SR2 7R3 9ib fi6-J(d3 1.298,2Ga 1.393,276 I,a14.5R9 1 J9�J07 I,i65,208 I,G42.681 1,73-0,559 I,&13,701 I 97?.887 M:ndinR rMained earninRs 7R3 9>6 864,(r13 I?9A?G4 1,393.276 I 4J4,SR9 I�199,d117 1.56S.20g I(+42,6R1 1,734.i59 I,SJi,7OI I 972.R37 2,123��0 i City of Orono Utility Funds Storm Sewer Fund Other revenue increase 3.00% 3.00°e 3.00°: 3.00% 3.00% 3.00% 3.00°i. Expenditure increase 3.00% 3.00"�0 3.00% 3.00% 3.00% 3.00°0 3.00°/. Requested Per Financial Statements Budget Qudget Projected 201K 2(N16 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cash flow Operatingincome(loss) 2G0,765 72,976 41i,209 G6,257 51,313 45,534 58,065 72,089 87,761 105,255 124,760 146,484 Depreciation 2,892 IG,426 18,623 18,622 19,000 20,000 20,G00 21,218 21,855 22,510 23,185 23,881 Otherchanges (13,286) (I0,57d) {465) 7,436 I ntergovemmental [nterest income 4,609 7,711 18,162 28,432 15,566 9,284 7,735 5,3$4 4,117 3,887 4,376 3,938 Interest expense Qonci procecds Bond repayment-201 I bonds 0 0 0 0 0 Bond repayment-2016 bonds Transfers 0 0 0 0 Miscellaneous 250 323 Capital (224,6411 (63.6R2) (�{00.000) (152,2501 (203.963) (162.Ofi8) 112�,1971 110�.203) (ll4.212) (208.2�11 Csah flow 30,339 22.857 451.779 121.07Q 131J.1201 (77.J32) 1117 iG2) (63.3771 (II.Jbg� 24.4dS (21.8911 (33,�a7) licg�nnmgcash IS'_'.278 IR2.617 _^Oiq7$ 65�.253 778.)'_3 d(r1.203 3Nb,771 .G9,_^W 2(1i.832 194,367 ^_IR.R12 146.��2 F:ndinRcr9h IR2.GI7 20S,a7d 657.253 77R.323 a(�t.203 q 38G.771 269.2119 2(K.832 19J.367 21A.8I2 196.922 162,�75 Appendix E Capital Improvement P1an-Water Utility Urility Rute Study Cilti�ojOrorio. bli�r��esn�u Decembf r.?009 I City of Orono LJtility Funds Water Capital Improvement Plan 2010 2011 2012 2013 2014 2015 2016 Main Rehabilitation/Re lacement: South water s stem well um maintenance $ 30,000 $ 30,000 No�th water s stem well um maintenance $ 50,000 Old C tal Ba Rd water main re lacement $ 250,000 Water Treatment Plant Rehab/Mtce: Resins in ion exchan er-South Treatment Plant $ 20 000 $ 400 000 South Treatment Plant chemical room u date $ 200,000 South Treatment Plant brine tank rehab $ 25 000 Water Towers: North Water Tower ins ection $ 3,000 North Water Tower re aint $ 500 000 Welis: Well um maintenance Install Well#4 $ 750,000 TOTAL $ 53,000 $ 430,000 $ 750,000 $ 500,000 $ 200,000 $ 25,000 $ 300,000 Inflated Costs 5.00% S 55,650 E 474,075 � 868,219 S 607,753 5 255,256 E 33,502 ; 422,130 Appendix F Capital Improvement Plan-Sanitary Sewer Utility UtrlitV Rule Jtudv Ci1v s�f Urono.Afimie,sora DecemGer 3009 City of Orono Utility Funds Sewer Capital Improvement Plan 2010 2011 2012 2013 2014 2015 2016 Main Rehabilitation/Re lacement: South Orono $ 270 000 $ 270,000 $ 270,000 $ 270,000 $ 270 000 $ 270,000 $ 270,000 Sanita sewer re lacement-Old C stal Ba Rd $ 250,000 Lift stations Annual im rovements-Stations 23 8 25 $ 100,000 Annual im rovements-Station 9 $ 50,000 Annual im rovements-Stations 21 $ 50 040 Annual im rovements-Stations 29 8 22 $ 100,000 Annual im rovements-Stations 24& 18 $ 100 000 Annual im rovements-Station 5 $ 50 000 Annual im rovements-Stations 14&21 $ 100,000 Annual im rovements-Station 28 $ 50 000 Annual im rovements-Stations 20& 16 $ 100 000 Annual im rovements-Station 14 $ 50,000 Annual im rovements-Stations 15&8 $ 100 000 Annual im rovements-Station 2 $ 50,000 Annual im rovements-Stations GS1 &GS6 $ 100,000 Annual im rovements-Station 1 $ 50 000 TOTAL $ 42Q,000 $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 420,000 $ 670,000 Inflated Costs 5.00% S 441,000 S 463,050 S 486,203 S 510,513 S 536,038 = 562,840 S 942,757 Append ix G Capital Improvement Plan-Storm Sewer Utility Uririry Rure sr�at�- CiN of O��oitn..1fi�me.cota DecemGer?009 LSZ`80Zs ZLl`YLL= 80Z'LOL= L6L`SZ�4 990'L9Ls £96'SOZS OSZ'Z9L4 %00'S s;so�pa3e��u� 000'Stil$ 000'0£L4 000'48$ 000'£Ol$ 000'06l$ 000'SBLS 000'SbL$ 1V101 431VWI1S3 321fllfld OOObl4 000'OL$ 000 OL$ OOObt$ 000'OLS OOObLS 000 OlS 3!ui�a ygyy sa�nni�e pue saie n�enuuy :�enuuy 000 5014 uoi►e�o;saa pue�lam�aa��s�a�u�ed 000'££S sa�i»ea �uawa euew pa eg�e�s �p�p OOObZLS s►uawana wi auine�pays�a►enaqng a�e�;sa�oj U00'b£S s�uawana wi gen �a�em pays�a�emqng eg aua e;e� 000'OZ$ sa�i��e� luawa euew pa al;a e;e��sa/�/� 000'OZ$ s�uawana wi i�en �a�enn pays�a{eMqng a�e��sa�o� 000'093 ua�e�olsa�pue�lam a�{e� uo� 000££4 sa�i;�e� auawa euew spa��e�ewel pue�a;unH 000'OEl$ sa��»e� �uawa euew pa p�eU��p ouo�p 000 SSS sauawana wi .�en �aleM pays�alemqng e8 ueuue� 000'OZl$ uoi�en�iqe�s auine�pays�aleMqng eg sqqniS 000'S94 s�uawano� wi i�en �alem pays�alennqng eg sqqn3S 000 OL4 uoge�olsa�puepam eg sqqniS :�uawaae� aa/uogei��iqeyaa uieyy 9LOZ SLOZ 4lOZ £LOZ ZIOZ LIOZ OIOZ �C�i�.Cq paaueu��s�uawanoadw��e;ide�pu��a.NaS w�o�S spun�.��I!�;1 - ouo�01��!� Appendix H Pro osed 2010 Residential Rates and Tiers Quarterly Rates Usage Range Rates Water Usa e Residential Tier One 0-10,000 $2.15 Tier Two 10,000 to 25,000 $2.69 Tier Three Over 25,000 $4.03 Chev Chase Tier One 0-15,000 $2.15 Tier Two 15,000 to 25,000 $2.69 Tier Three Over 25,000 $4.03 Multi Famil Tier One 0-50,000 $2.15 Tier Two 50,000 to 150,000 $2.69 Tier Three Over 150,000 $4.03 Commercial Tier One 0-50,000 $2.15 Tier Two 50,000 to 150,000 $2.69 Tier Three Over 150,000 $4.03 Minnetonka All usage $2.67 Beach Water Fixed Residential $24.00 Commercial $24.00 Chev Chase $15.00 Minnetonka Beach $31.31 Sewer Fixed Residential Fixed $109.72 Multi Famil Fixed $109.72 Commercial Fixed $109.72 Commercial Usage All usage $10.341tho usand Storm Sewer All Users Based on residential equivalent $11 .33 units G'�i/ity Ra�e Stud�- Cin•ojOrona h/nnie.sotn Decemher. 3009 Average Yearly Cost Breakdown 2013 Avg Price to Percent 4yr Avg Units Sold Est.Avg Revenue Estimated Avg Sell Price Produce Operating Profit/Lose System (1/1000 gal)' w/2013 retes Expenses (1/3000 gal) (1/3000 gal) Profit/Lose 1$) (%) Navarre Residential 54,269 $257,480 $4.74 Navarre Commercial 8,460 $32,849 $3.88 Navarre Sub-Total= 62,729 $290,329 $341,074 $4.63 $5.57 ($50,745) -17% North Residential 15,208 $69,009 $4.54 North Commercial 14,156 $58,371 $4.12 North Sub-Total= 29,364 $127,380 $117,647 $4.34 $3.96 $9,733 8% Wayzata Residentiai 7,204 $28,809 $4.00 Wayzata Commercial 624 $2,692 $431 Wayzata Sub-Total= 7,828 $31,501 $24,823 $4.02 $3.19 $6,678 21% Total System OperationZ= $449,210 $483,544 (S34,334) -8% 1. 4yr Average Usage based on information collected from 2009-2012 2. After Cellular Lease is included(5100,000)the overall system will operate at about a 12ry Profit. Average Yearly Cost Breakdown-Increased Depreciation due to Improvements to North System 2013 Avg Price to Percent 4yr Avg Units Sold Est.Avg.Revenue Estimated Avg Sell Price Produce Operating Profit/lose System (1/1000 gal)1 w/2013 retes Expenses (1/1000 gal) (1/3000 gal) Profit/Lose ($) (°r6) Navarre Residential 54,269 $257,480 $4.74 Navarre Commercial 8,460 $32,849 $3.88 Navarre Sub-Total= 62,729 $290,329 $341,074 54•63 $5.57 (550,745) -17% North Residential 15,208 $69,009 $4.54 North Commercial 14,156 $58,371 $4.12 North Sub-7otal= 29,364 $127,380 $152,409 $4.34 $5.14 ($25,029) -20°� Wayzata Residential 7,204 528,809 54.00 � Wayzata Commercial 624 $2,692 $4.31 � Wayzata Sub-Total= 7,828 $31,501 $24,823 $4.02 $3.19 $6,678 21% �.J, ) � Total System OperationZ= $449,230 $518,306 (569,096) -15% S'i I 1. 4yr Averege Usage based on information collected from 2009-2012 2. After Cellular Lease is included($100,000)the overell system will operate at about a 6%Profit. � Depreciation increases by approximately$34,000 per year after water tower,new well,and improvements to well house are completed Proposed 2014 Breakdown 2014 Avg Price to Percent 4yr Avg Units Sold Est.Avg Revenue Estimated Avg Sell Price Produce Operating Profit/Lose Proposed Rate System (1/1000 gal)' w/2013 rates Expenses (1/3000 gal) (1/1000 gal) Profit/Lose ($) (%) Increase (%) Navarre Residential 54,269 $285,803 $5.27 Navarre Commercial 8,460 $36,463 $4.31 Navarre Sub-Total= 62,729 $322,265 $351,306 $5.14 $5.57 (529,041) -9�4. li% North Residential 15,208 576,600 $5.04 North Commercial 14,156 564,792 $4.58 North Sub-Total= 29,364 $141,391 $156,981 $4.82 $3.96 ($15,590) -li i 11% Wayzata Residential 7,204 $31,978 $4.44 Wayzata Commercial 624 $2,989 $4.79 Wayzata Sub-Total= 7,828 $34,966 $25,568 $4.47 $3.19 $9,399 27% 11% TotalSystemOperetionZ= $498,623 $533,855 ($35,232) 7i 1. 4yr Average Usage based on information collected from 2009-2012 2. After Cellular Lease is included($100,000)the overall system will operete at about a 11%Profit. � �xrt�� . Cost for City to Produce a Unit of Water (1/1000 gal) Water System 2 Water System 3 Water System 1 Water System 2 increased Served by Navarre Area Hwy 12 Area Depreciation Wayzata Wages/Benefits 111,740 54,160 54,160 14,210 Insurance 6,200 3,000 3,000 790 Maint Supplies 31,000 15,000 15,000 4,000 Depreciation 58,600 25,500 59,250 3,500 Operating Costs(chemicals/utilities 114,000 11,760 11,760 0 Adm Charge 9,600 4,800 4,800 1,600 Total 2012 Yearly Expenses= 331,140 114,220 147,970 24,100 Annual Gallons Billedl 59,432.75 28,807.50 28,807.50 7,556.00 Average Cost to Produce one Unit of water(1/1000 gal)2 5.57 3.96 5.14 3.19 1. 4yr Average Usage based on information collected from 2009-2012 2. Includes Base Charge �� ,�X�.�r ,� I��' �� Water Fund Table B-6 Current Balance:$1,175,000 Project 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Annual Operation and Maintenance(1) 5435,000 5445,875 5457,022 $468,447 5480,159 $492,163 $504,467 5517,078 $530,005 5543,255 $556,837 5570,758 $585,027 $599,652 $614,644 5630,010 5645,760 $661,904 5678,452 $695,413 Oebt Service 555,000 555,000 555,000 555,000 555,000 $55,000 $55,000 555,000 $55.000. _ CIG Ezpenditures $874,500 $460,000 $125,000 $300,000 $1,110,000 $265,225 $555,182 $281,377 $289,819 $511,013 $462,468 $616,693 $486,193 $335,979 $416,058 $426,440 $367,133 $376,147 $389,492 $1,101,177 7otal E�penses 51,364,500 $960,875 5637,022 5823,447 $1,645,159 5812,388 51,114,648 5853,456 5874,824 $1,054,268 51,019,305 $1,187,450 51,071,220 $935,631 51,030,702 51,056,450 51,012,893 51,040,051 51,067,943 $1,796,589 Revenues(1) $570,000 5592,800 5616,512 $641,172 $666,819 $693,492 $721,232 5750,081 $780,084 $811,288 $843,739 5877,489 $912,588 5949,092 $987,056 51,026,538 $1,067,599 $1,110,303 51,154,715 $1,200,904 Assessments $10,387 $30,387 $10,367 $10,387 $10,387 510,387 $10,387 $10,387 $30,387 $10,387 $10,387 $10,387 $0 $0 $0 $0 $0 $0 $0 $0 AnnualBalance ii��4a113 -- �>1�1.11t1 i51�1,8F381 �36'952. - (592,9871 �SS3,3521 i52s2';71�. ,;1�� ,5�995%1��. i�:�LSfi.c32'. $13,460 '.j�3.��a;'.. ;)1!� $54,706 $70,252 $86.772 �.:�g5��, VearEnd Ush Balance $390,887 $33,199 $23,076 5148,812 51,116,764 5�.7�5�1�� 51,608,302 $1,701,289 $1,785,642 $2,018,236 52,183,415 52.482,989 52,641,621 52,618,160 52,671,807) 52,701,719' S2,647,013 52.576.J61 (52,189,989� 53,085,6�J Sewer Fund CurrentBalance: $3,133,000 Table B-7 Project 2014 2015 2016 2017 2018 2019 2020 2023 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Operation and Maintenance(1) $901,000 5923,525 5946,613 $970,278 5994,535 $1,019,399 51,644,884 $1,071,006 $1,097,781 51,125,226 $1,153,356 $1,182,190 $1,211,745 $1,242,038 $1,273,089 $1,704,917 51,337,540 $1,370,978 $1,405,253 $1,440,384 DebtService Siio,000 Siio,000 Siia,000 Siio,000 Silo,aao Siio,aoo Siio,000 Siio,000 Siio,oaa CIP Ezpenditures $511,000 5533,630 5476,594 $453,719 $421,103 $786,236 5816,748 5523,150 $473,955 5468,174 $502,819 5517,903 $570,441 5549,444 $565,927 $582,905 5600,392 $678,404 5636,956 $656,065 Total Expenses $1,522,000 $1,567,155 $1,533,207 $1,533,997 $1,525,638 51,915,635 $1,971,632 $1,704,156 51,681,736 $1,613,399 $1,656,175 51,700,094 $1,782,185 $1,791,482 $1,839,016 51,887,822 $1,937,932 SZ,049,382 $2,042,208 52,096,448 Revenues(1) $1,209,500 51,239,738 $1,270,731 $1,302,499 51,335,062 $1,368,438 51,402,649 $1,437,715 $1,473,658 $1,510,500 $1,548,262 51,586,969 $1,626,643 $1,667,309 51,708,992 $1,751,717 51,795,510 $1,840,397 $1,886,407 $1,933,567 Asseumen[s $35,349 535,349 535,349 535,349 $35,349 $35,349 530,368 $26,934 $24,902 517,569 517,569 510,939 $2,000 $0 $0 $0 50 $0 50 $0 Annual Balance �. � . � � �. � - . . i�1S5 2I8. >�l'3a:: _ �590.3a3'� �,�>1S3.S�12'� 5123,1�3r '��ti� S1i5,LUSi �>LJ23L2�. �">155.801� 15162.881) YearEnd Ush Balance $2,855,849 52,563,781 $2,336,653 $2.140,504 $1,985,277 $1,473,429 5934,814 $695,307 �$512,132 $426,801 $336,457 $234,272 $80,729 543,qqq 5173,d68 5309,573 5451,995� �5660,980 5816,781 5979,662 Storm Water Fund CurrentBalance: $925,000 Table B-8 Ptojec[ 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20ri 2030 2031 2032 2033 Operation and Maintenance(1) $90,000 $92,250 $94,556 $96,920 $99,343 5101,827 $104,372 $106,982 5309,656 $112,398 $115,208 $118,088 $121,040 $124,066 5127,168 $130,347 $133,606 5136,946 $140,369 5143,879 CIP Expenditures $179,000 $378,700 $350,000 $430,000 $360,500 $371,315 $382,454 $393,925 $405,J46 $417,918 $430,456 $743,370 $456,671 $470,371 $484,482 $499,016 $513,987 $529,406 $545,289 $561,647 TotalEzDenses $269,000 $470,950 5444,556 $526,920 $459,843 $473,142 $486,827 $500,910 $515,402 $530,316 5545,663 $861,457 $577,711 5594,437 $611,649 $629,363 $647,592 $666,352 5685,658 $705,526 Revenues(1) $225,000 $234,000 $243,360 $253,094 $263,218 $273,747 $284,697 $296,085 $307,928 $320,245 5333,055 $346,377 $360,232 $374,642 $389,627 $405.212 $421,421 $438,276 $455,809 $474,041 AnnualBalance ,.I.� . - _ ' '�i3:�. SI96h2S? �t�)`)3�)SI - I�LG3.325i 15207.373� (5210.9)1) ��771.•>UA� :�LS.�13J�, .>2;'+'8�. '..�;Jtj)9Si 15�23.1511 I>2L6 t�2� -223.]:1� i5129.849; 15231.SSi1 YearEnd Cash Balance $881,000 $644,050 $442,854 $169,028 $27,597) 5726,992 (Sa29 1221 $633,947 5841,421 $1,051,4921 51,264,101 (Sl 779,181 (51,996,659j $1,216,454 !$Z 138�4771 $2,662,627 SZ,888,799� 53,116,873 $3,346,713 �53.578,207 Permanent Improvement Revolving (PIR) Fund CurrentBalance: 51,170,000 AmountAvailableforPolicePurchases= 5184,256 Table B-9 Project 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2020 2025 2026 2027 2028 2029 2030 2031 2032 2033 Police Ezpenses $15,000 $55,000 520,000 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 555,970 $6,149 526,334 $26,524 56,720 $6,921 $7,129 57,343 $7,563 $7,790 $8,024 Total Expenses $15,000 $55,000 $20,000 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 $55,970 $6,149 $26,334 $26,524 $6,720 $6,921 $7,129 $7,343 $7,563 $7,790 $8,024 Revenues 511,700 $11,667 $11,234 $11,146 $11,207 511,268 $11,328 51],386 $11,444 511,500 $11p56 513,105 $10,952 $30,797 $10,838 $10,877 $10,914 510,950 $10,984 $11,016 AnnualBalance �u++;3 56,146 $6,057 $5,964 55,864 55,759 $5,648 i:;��d.�:�h 54,906 - i>ISsllr $4,077 $3,916 53,748 53,571 53,387 53,194 52,992 Vear End Cash Balanm $1,166,700 $1,123,367 $1,114,601 $1,120,747 $1,126,804 $1,132,768 $1,138,632 $1,144,390 $1,150,038 $1,105,568 $1,130,474 $1,095,245 $1,079,674 $1,083,751 $1,087,667 $1,091,415 $1,094,987 $1,098,374 $1,101,568 $1,104,560 Police Infrastructure Fund CurrentBalance: 5225,000 Table B-10 Projec[ 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Police Ezpansion(Building CIP) $2,500,000 E=Pe�ses Sz,soo,000 So So So So So So So So So So So So So So So Sa So So Sa Re�e��es 51�s,000 Siso,000 Sizs,000 51aa,000 Sioo,000 Sioo,oaa Sioo,000 Sioo,000 Sioo,000 n��ai saia��e ,z szs 000-; Siso,000 Sizs,000 Sioo,000 Sioo,000 Si�,000 Sioo,000 Sioo,000 Sioo,000 So So So So So So So So So go So Year End cash ealance Sz,ioo.000j Si,95o,00o Si,azs,000 Si,ns,000) (5'i,sz5,000 Si szs.000 S�Azs,000 Si,a25,000 5[.zzs,000 151,225,00o Si,zzs,000 Si,zzs,000 �Si.zzs,000 St,zzs,000 Si,2zs,000) S1,n5,000� Si,zzs,000 ISl,us,000 Sl,zzs,000 St,zzs,000 NOTES: �l)Expenses and ftevenues are based on the City's 2011 budget.For Planning purposes a 2.5%annual inFla[ion factor has been used to Droject future cos[s. (2)Revenues are based on a 1.5%increased mntribution starting in 2016 and adding a 1%interest earned on the previous year's balance. (3)Includes MSA Maintenance dispursement and lehover bonds from Old Crystal eay Rd/Willow Dr. �l��7' � Impacts to Water Fund Balance Using Example 1 Water Fund CurrentBalance: 51,175,000 Table B-6 PrqeR 2016 2015 2016 2017 2018 2019 2020 2021 2022 2� ��a �5 �5 2p27 Zp2g zpz9 p9p 20;3 2q32 2033 Annual Operation and Main[enance(1) $435,000 $445,875 $457,022 $468,447 $480,159 5492,163 $504,467 5517,078 5530,005 $543,255 5556,837 $570,758 � $585,027 5599,652 5614,644 5630,010 5645,760 $661,904 5678,452 $695,413 Depreciation $90,000 $110,000 $120,000 $130,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 DebtService $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 5230,000 $175,000 $175,000 $175,000 $175,000 $175,000 $175,000 CIP Expenditures $110,000 $0 $125,000 $50,000 $62,500 $0 $482,000 $206,000 $212,180 $431,045 $380,302 $531,855 $398,810 $245,975 $323,354 $330,955 $268,783 $276,847 $285,152 $993,70J To[al Ezpenses $865,000 $785,875 5932,022 5878,447 $917,659 $867,163 51,361,467 51,098,078 $1,117,185 $1,294,301 $1,256,939 51,422,613 $1,303,837 $1,165,627 51,257,998 51,105,964 51,059,543 $1,083,751 $1,108,604 $1,834,120 Revenues(1) $516,000 $567,600 $624,360 $680,552 $728,191 $779,164 $833,706 5892,065 $954,510 $1,021,326 $1,092,818 $1,169,316 $1,251,168 $1,338,750 $1,432,462 $1,532,734 $1,640,026 $1,754,828 $1,877,666 $2,009,102 7owertease Revenue Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioq000 Sioo,000 Sioo,000 rioo,000 Sioo,000 Sioo,000 rioo,000 Si�,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 gioo,000 Sioo,000 Sioo,000 Assessments $10,387 $30,387 $10,387 $10,387 510,387 $10,387 $10,387 $30,387 $10,387 $30,387 $10,387 $10,387 $0 $0 $0 $0 $0 $0 $0 $0 AnnualBalance !s�.o13� __ �.�,t�'�JB, $22,389 ;'1 - - i;S�.23fi�� i1�;1`,8R`� ��y;�3? i�11�31�.�� $47,331 $273,122 $274,464 $526,770 $680,483 $771,077 $869,062 $274,983 YearEnd Cash Balance 5936,387 5828,499 $631,224 $543,716 5464,636 $487,024 $69,651 (525,975 578,263 5240,852 5294,i85 5437,795� 5390,164 5117,041 $157,423 $684,193 $1,364,676 52,135,753 $3,004,814 53,279,797 Impacts to Water Fund Balance Using Example 2 Water Fund Table B-6 Current Balance:$1,175,000 Project 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 AnnualOperation and Main[enance(1) $435,000 $445,875 $457,022 $468,447 $480,159 $492,163 $504,467 $517,078 $530,005 $543,255 $556,837 $570,758 $585,027 $599,652 $614,644 $630,010 $645,760 $661,904 $678,452 $695,413 Depreciation $90,�00 $110,000 $120,000 $130,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 $145,000 Deb[Service $230,000 $230,000 $230,000 $230,000 $230,000 $230,000 5230,000 $230,000 $230,000 $175,000 $175,000 5175,000 5175,000 $175,000 $175,000 CIP Expenditures $110,000 $0 $125,000 $50,000 $62,500 $0 $482,000 $206,000 $212,180 $431,045 $380,302 $531,855 5398,830 $245,975 $323,354 $330,955 $268,783 $276,847 $285,152 $993,707 TotalEzpenses $865,000 $785,875 $932,022 $878,447 $917,659 $567,163 $1,361,467 $1,098,078 $1,117,185 $1,294,301 $1,256,939 $1,422,613 $1,303,837 $1,165,627 $1,257,998 $1,105,964 $1p59,543 $1,083,751 $1,108,604 $1,834,120 Revenues(1) $498,000 $552,760 $613,586 $681,080 $728,756 5779,769 5834,353 $892,757 $955,250 $1,022,118 $1,093,666 $1,170,223 51,252,138 $1,339,768 $1,433,573 $1,533,923 $1,641,298 $1,756,189 $1,679,122 $2,010,660 rowe��ea:e ae�e��e Sioo,000 Sloo,000 Sioo,000 Sioo,000 Sioo,000 Si�,000 Sloo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Sioo,000 Assessmen[s $30,367 $10,387 $10,387 $30,387 $10,387 $10,387 $10,387 $30,387 $30,387 $10,387 $10,387 $10,387 $0 $0 $0 $0 $0 $0 $0 $0 AnnualBalance �SL566L�� '�;d�. �: i080ay1 �536.9R0:� $22,993 i>93,9341 i551,5481 ($161,�96) "i2,tib6! ��.51-11�)i:��. $48,301 $274,161 $275,575 $527,959 $681755 $772,438 $870,518 $276,541' YearEnd Cash Balance $918,387 $795,679 $587,630 $500,650 $422,134 $445,127 $28,G00 $66,534 5178,081 $279.1t78 5332,�63 5374,766 5416,�65 15152,304 $123,271 $651,230 51,332,985 $2,105,422 $2,975,941 $3.252,C81 NOTES: (1)Expenses and Revenues are based on the City's 2011 budget.For Planning purposes a 2.5%annual inFlat�ion factor has been used ta project future costs. (2)Revenues are based on a 1.5%increased wntribution starting in 2016 and adding a 1%interest eamed on the Drevious year's balance. (3�Indudes MSA Mainrenance dispursement and lekover bonds from Old Crystal Bay Rd/WJlow Dr. _ ') I !J �� S '' I'�'�.,g� t � Capital Improvement Plan, City of Orono fv�v�s� y Public Works - Water CIP Table A-6 5-Year CIP Plannin Period Project 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 North Water Tower Repaint,Rehabilitation,and continuing maintenance. $440,000 $62,500 $62,500 570,000 $700,000 Well#1 Rehabilitation $100,000 $150,000 Feasibility Report for lon Exch.Rebuild $10,000 Main Replacement on W.Lafayette Rd. $70,000 Well#3 Rehabilitation 5300,000 5155,000 5.Treatment Plant lon Exch.Rebuild $400,000 South Treatment Plant Pipe Replacement $10,000 So.Treatment Plant Salt Brine Tank Rehab. $25,000 Well it2 Rehabilitation $100,000 $160,000 No.Water System Well Pump Maintenance $50,000 Watermain Improvement Projects 5200,000 5206,000 5212,180 $218,545 5225,102 $231,855 $238,810 $245,975 5253,354 $260,955 $268,783 $276,847 $285,152 $293,707 Install Well#4(North Water System) $750,000 South Treatment Plant Chem.Rm.Upgrade $232,000 South Tower Repaint and Rehabilitation $50,000 550,000 $300,000 570,000 Totals $620,000 $1,510,000 5125,000 550,000 $62,500 $0 5482,000 $206,000 $212,180 5431,045 $380,302 $531,855 5398,810 $245,975 $323,354 $330,955 $268,783 $276,847 Sz85,152 5993,707 0 — MEMORANDUM TO: ORONO CITY COLTNCIL FROM: JF.SSICA LOFTUS, CITY ADMINIST�TOK SUBJECT: RETIREMENT PROPOSAL DATE: NOVEMBER 25, 2013 r1t the July budget work session, the City Council decided to align the Golf Course Superintendent position to the match the golf season and reduced the position to .75 FTE to achieve a $16,000 savings in the 2014 general fund budget. In�ugust I advised Ron S. of this decision and he requested I report back to you that he would like to consider retiring if the city paid his health coverage unti12018. There was no support for this proposal from the Council in r�ugust and the direcrion was to provide him with the "Phased Retirement" brochure (attached) from PERr� and to also report on his severance payout amount ($15,000 into a medical expense account). In summary, below are the requirements for the "Phased Retirement" plan with PERA: • Must be age 62 —Ron S. meets this requiYement on January 19`" • Hours reduced by at least 25% and will not exceed 1,044 hours per year. • One year agreement that can bc renewed (no obligarion) up to 5 years. Ron S. now requests the Council consider agreeing to the Phased Retirement program. He would work March 1-November 15 for 29 hours per week. This would result in an additional savings to the City of$31,000 in salary, PERr� and benefits. There would be a gap in the current hours of supervising, general hours of labor and there is arguably a need for more programming assistance than is currently provided. However,with this phased retirement scenario providing a saving of $31,000,we could hire a programming supervisor for�25/hour and they could work 29 hours per week for 7 months which would cost$17,600. r'�dding an additiona120 hours per week of seasonal part time labor at$10/hour for 7 months would cost a total of�6,100. Overall, this option might provide comparable levels of service (albeit dependent on part-time employees) and save an additional �7,000 from the original plan to reduce the posiuon to .75 FTE. Ron has also requested two things that are not permitted in our current personnel policy and would require Council approval: 1. Would the City pay for the premium of his medical cost ($500/month = $6,000/year)? 2. Could he put vacation and sick days into his Health Savings r�ccount? The City Council may want to discuss which option, the original .75 FTE or the newly requested phased retirement, is best for the golf course in 2014. i �� PHASED RETIREMENT: An o tion for Coordinated members a e 62 and over p 9 +. ; If you, as a Coordinated mem- year. However, it may be if they are under Social Security's ber, are age 62 or over, you may renewed for up to an addi- normal retirement age—exceeding be able to ease into retirement tional year. The total period the limits results in a reduction of under something called a Phased of phased retirement may not the PERA pension. The�e restric- Retirement. This option is entirely exceed five years. tions are eliminated und r phased at the discretion of your employer. yyou and your employer (or a retirement. You will receive new PERA-covered em lo er the full PERA pension you have Under legislation passed this , p y � earned, based upon your years ear PERA's normal termination must sign a Phased Retirement Y � of service, age at retirement, and re uirements and earnin s limits Agreement form provided by q g high-five average salary. are waived if you meet the require- PERA. This is used in place ments of the special provision. of PERA's normal Termination In addition, neither y u nor Veri fication form. your employer are requ�ed to Requirements make future contributions to �►To qualify, you must be age 62 PERA. Since you are now receiv- or over and a vested member The benefits of the plan ing a pension, all further accrual of of PERA. You must also have Normally, in order to receive a service credit or adjustment of the worked a minimum of 1,044 pension, members must formally high-five average salary ceases. hours in each of the five years terminate employment and have immediately preceding the offer no prior agreement, either verbal of a phased retirement by your or written, that they will be reem- EI11pI0yeC�5 dISCCet1011 employer or another PERA-cov- ployed at a later date. In addi- ered em lo er. � Your employer is under no obli- P Y tion, there must be a minimum gation to offer you a phased retire- �►You must a ree that our hours 30-day break in public service g y ment or to renew any agreement of work will be reduced by at (paid or unpaid) if a member does that is made. You should also least 25 percent and will not return to work for a PERA-cov- investigate the impact a duction exceed 1,044 hours per year. ered employer. Members who of hours may have on yo r other return to PERA-covered employ- em lo ee benefits. �►The initial phased retirement ment are subject to earnings limits p y agreement cannot exceed one (Continued on reverse side) i � ' June 2010 The procedure benefit. Retirees who return to Phased retirement requires a PERA-covered work remain sub- � written agreement between you ject to the Association's earnings and the PERA-covered employ- limits. er offering you the option. You must file both a Phased SUI15@t ' Retirement Agreement form Currently, the phased retire- and an Application for PERA ment option is set to end on RetiYement Benefits with PERA. June 30, 2014. Until then, All other PERA benefit and appli- PERA will be evaluating the PNASE� cation requirements must be met. program's effectiveness and its ; =' �� impact on the pension fund. ¢ ��'�� . � 1 � If your phased retirement Continuation of the option �J agreement is not renewed, your would require legislative action. employer must report your ter- , � mination of public employment This document is available in alternative � to PERA. You may not return formats to individuals with disabilities by to work for your employer or calling 1 800 652-9026 or through the An option for Coordinated another PERA-covered employer Minnesota Relay Service at for a minimum of 30 days. If 1 800 627-3529. members age 62 and over you later rejoin PERA-covered This brochure is meant to explain the employment and are under Social Public Employees Retirement Association Security's full retirement age, you of Minnesota law as simply and accurately as possible. If there is any discrepancy will be subject to PERA's annual between this publication and the actual earnings limit. law, the provisions of the law will govern. ' i /�I►�Public Employees Retirement ; Not for retirees L/ Association of Minnesota Phased retirement is not avail- � 60 Empire Drive, Suite 200 ` able to PERA members who are st. Pau�, Minnesota 55103-2088 Public Employees Retirement already receiving a retirement 800 652-9026 ♦ (651) 296-7460 Association of Minnesota www.mnpera.org ; I 0 - - � MEMORANDUM _ _—_ TO: ORONO CITY COUNCIL FROM: JESSICA LOFTUS, CITY�DMINISTRATOR SUBJECT: EMPLOYEE COMPENSr�TION DATE: NOVEI�IBER 25, 2013 The City Council discussed employee compensation throughout the budget work sessions and most specifically at the r,ugust 26`" work session. The August memo and minutes from that work session are attached for your reference. Recendy, at the October work session, the City Council discussed the salary surveys provided to you with recommendations on allocaring the non-union funds as directed in 1-�ugust (also attached). There were two requests for new informarion at the October work session: 1. rl survey of what other surrounding lake cities are doing for compensation (see attachment 1). 2. Calculations for a uniform lump sum payment (see attachment 2). The City Council may want to discuss the overall results of changing philosophies to lump sum compensation. Public Agency 2010 (% Increase) 2011 (% Increase) 2012 (% Increase) 2013 (% lncrease) Deephaven 0% 2% 1% 2% Excelsior 0% 2% 1% 2% Greenwood Contracts with the City of Deephaven LMCD 0% 2% 1.5% 2% Minnehaha Creek 2% 2% 3% 5% Watershed District Minnetonka 1.81% 1.56% 1.46% 1.44% Increases in 2011 were split in January and July. This is the overall average (non-union). Every employee receives a 1% & based on a market analysis, some positions receive a market increase. Minnetonka Beach 2% 2% 1% 1% (Plus 3.5% step increases to those eligible) Minnetrista 1% 0% 2% 1°� Mound 0% 1% 1% In Negotiations Orono 1% 1% 1% 1% (July, 2012) Shorewood 2% budgeted each year from 2010-2013 for non-union employees. Funds were put in a pool and adjustments were based on performance and position in the market range for each employee. The average has been 1.5% the past couple of years (varies by osition). Spring Park 2% 3% 3% 3.75% (These numbers include COLA increases) Tonka Bay 0.83% 1% 1% 1% Victoria 1% 1% 1% 2% Wayzata 0% 0% 1.5% 2% Woodland Contracts with the City of Deephaven i City 20141ncr. Population Firm? Comment Richmond 0.00% 1,433 Nowthen 0.00% 4,487 Y Minnetrista 1.00% 6,735 anticipating 1%to 2% Elko New Market 1.75% 4,285 Y East Gull Lake 2.00% 989 Excelsior 2.00% 2,235 Lauderdale 2.00% 2,427 Osseo 2.00% 2,458 Pine City 2.00% 3,084 Zumbrota 2.00% 3,296 Y + Dayton 2.00% 4,819 Y I Chisago City 2.00% 4,972 Y Zimmerman 2.00% 5,242 Albertville 2.00% 7,159 Mahtomedi 2.00% 7,697 Detroit Lakes 2.00% 8,763 Waseca 2.00% 9,427 Hermantown 2.00% 9,606 LeSueur 2.10% 4,049 Montevideo 2.50% 5,343 ' Shorewood 2.50% 7,438 Granite Falls 3.00% 2,843 Baxter 3.00% 7,661 Y Mound * 9,210 flat$ .50 per hour across the board Oak Park Heights ** 4,654 "everything is still open" Northfield 0.00% 20,373 North Mankato 1.00% 13,462 Rogers 1.50% 11,508 Forest Lake 1.50% 18,791 White Bear Lake 1.75% 24,074 "looking at 1.75%to 2.00" Big Lake 2.00% 10,334 Fairmont 2.00% 10,521 Y Cloquet 2.00% 12,156 Y Mounds View 2.00% 12,340 Hutchinson 2.00% 14,034 grid moves 2.0%+ pay for performance � � I Otsego 2.00% 14,034 Robbinsdale 2.00% 14,212 Ham Lake 2.00% 15,462 Saint Michael 2.00% 16,673 Columbia Heights 2.00% 19,676 Y West Saint Paul 2.00% 19,756 Y South Saint Paul 2.00% 20,290 "in negotiations for 2.0%to 2.5%" I Lino Lakes 2.00%o 20,625 Rosemount 2.00% 22,384 Elk River 2.00% 23,147 Champlin 2.00% 23,536 Y Ramsey 2.00% 23,946 "2.5% proposed, personnel committee wants 2.0%" Chaska 2.00% 24,211 Austin 2.00% 24,854 Prior Lake 2.50% 23,385 Fergus Falls 3.00% 13,228 Bemidji 3.00% 13,560 Anoka 3.20% 17,345 1.0%Januarythen 2.0%July Hopkins 3.20% 17,939 2.0%January 1 plus 1.0%July 1 Brainerd * 13,621 unknown but working on it Monticello *** 12,901 making determination between 0.0%and 1.5% Lump sum only payment Every 1% Union = $19,400 Appiied uniforr►�ly by 26 Non-Union employees(2-FT officers total 1 FTE)= 746 Every 1% Non Union = $18,000 Applied uniformly by 30 Non-Union employees (excludes GC Seasonal) = 600 , . � MEMORANDUM TO: ORONO CITY COUNCIL FROM: JESSICA LOFTUS, CITY ADMINISTRATOR SUBJECT: EMPLOYEE COMPENSATION DATE: OCTOBER 28, 2013 The City Council discussed employee compensation throughout the budget work session and specifically at the August 26`h work session. The August memo and minutes from that work session are attached for your reference. I have completed the necessary salary survey�s to provide you with recommendauons on allocating the non-union funds as directed in August. The City Council may want to discuss the results of the surveys/recommendarion and also discuss the results of this philosophy change. i The recommendation allocates an increase equal to 1.9%for all non-union positions to account for the$35,200 put into contingency for non-union wages. Specific actions by position are below. ' _ Compensation Calculations by Position/2014 Target 2014 Position Current Max.Waqe (Averaqe Market Maximum) Percent of Market Recommendation Community Service Officer $37,294 $36,480 102% Lump sum $708.59 CityAdministrator $112,468 $111,313 101% Lumpsum $2,136.89 Customer Service Assistant $39,437 $44,142 89% Base increase $749.30 Finance Director $94,895 $94,461 100% Lump sum $1,803.01 Public Works Maintenance $51,958 $52,662 99% Base increase $98720 Admin Support Assistant $44,720 $48,616 92% Base increase $849.68 Utiltiy Billing Clerk $49,941 $49,267 101% Lump sum $948.88 Public Works Director!CE $94,895 $99,468 95°/o Base increase $1,803.01 Building Official $75,887 $76,390 99% Base increase $1,441.85 Police Office Manager $49,941 $53,237 94% Base increase $948.88 Planning Assistant $51,958 $53,237 98% Base increase $987.20 ITTechnician $58,577 $60,778 96% Baseincrease $1,112.96 City Clerk $58,577 $62,107 94°/o Base increase $1,112.96 Golf Course Supervisor $62,444 $61,523 101% Lump sum $1,186.44 Building Inspector/ISTS $62,444 $60,197 104% Lump sum $1,186.44 Accountant $66,565 $63,106 105% Lump sum $1,264.74 Public Works Supervisor $66,565 $71,501 93°/o Base increase $1,264.74 Planning&Zoning Coord. $75,887 $75,103 101% Lump sum $1,441.85 Asst. CA- LT Strategy $87,929 $87,570 100% Lump sum $1,670.65 Police Chief $103,346 $107,108 96% Base increase $1,963.57 Deputy Police Chief $87,929 $89,919 98% Base increase $1,670.65 Comparables were selected to include all cities in the metro area within the population range of 5,000-15,000. The metro region is selected as the competitive labor market draw. ;Search Results for Community Service Officer. 'II� ,,z��. � �, -��.��'��,��`�� ?a ro aF� ��, yf��r�x��`��. �C-�� ..e�: ,�,,.a�;�. dl. ':.tt .fi!.,.�^,.�.. � tl��yfi � J2�q�r �r� ��^��7x e p�'�. n v. 4s.a v . � 5 ��i �' "�'.F� �a.r. e�.,�� t ,. , ...�,.m�� Minnetrista 6296' 29,053.44 E 37,776.96 '� Mound 9787 27,040.00 35,982.0� Orono 7980 27,976.00 37,294.40 Rogers 11500 33,592.00 40,976.00 South Lake 12233 �Minnetonka � ;Police Dept ,St. Anthony 8437 0 30,368.00 IVillage �Average $23,532.29 $36,479.47 rSearch Results for City/County Administrator/Manger/Coordinator. Metro cities population 5,000-15,000 � � � -� ,_. , .�a � ��.. � �� a��:. ry «b § � .V��. � �tl� I �� g, y ��. �� ad&� y�� aF,� e �� , o . `ea — w s �, ��, a ".. �.6.,.,u. �. tW u.w.aa a�� Arden Hills 10137 Metro 93,119.00 r 116,399.00 � ._....,. _ __._ .�W._._..�......... ,,......,._..�,..�._.-- ',Circle Pines 5279 Metro 83,928.00 110,427.20 Corcoran 5842 Metro 75,564.00 92,147.00 'Dayton 5072 Metro 91,377.76 115,622.00 East Bethel � 12090 Metro 0 117,998.40 i Falcon Heights 5762 Metro rHugo _. 13140 Metro 100,592.00 131,042.00 �J�ordan � � 5402 �Metro 73,716.00 96,984.00 �Little Canada 10036 Metro 95,235.00 114,000.00 I Medina 5026 Metro 77,688.00 98,987.20 Me� ndota Heights 11766 Metro 91,296.00 110,970.00 Minnetrista 6296 Metro 95,347.20 114,420.80 Mound 9787 - Metro 90,376.00 112,954.00 �Mounds View 12733 Metro 90,084.80 112,611.20 New Prague 7081 Metro 84,032.00 105,040.00 Oak Grove 8579 Metro Orono 7980 Metro 84,351.05 112,468.10 ' Rogers 11500 Metro 88,441.60 107,848.00 Shorewood 7618 �,Metro 100,339.00 122,637.00 !Spring Lake Park 6768 Metro 78,707.20 100,900.80� St. Anthony Village 8437 Metro� 96,907.20 121,118.40 � !St. Francis �7455�W�Metro �� 86,528.00 108,180.80 St. Paul Park � 5221 Metro � Vadnais Heights 13071 Metro 99,174.40 119,017.60 Victoria � 6727 Metro 85,897.00 107,371.00 !Waconia 10183� Metro 94,388.00 111,045.00 iAverage �� $85,090.84 $111,312.59 !Search Results for Office Support-Specialist I.J� w'�.., , � e � 4� . �o� . , � �� w�:�� o o - ��a�z� , i �; �.,�; ,_�.��_�. .::v � IArden Hilis 10137 Customer 37,960.00 47,444.80 � Service Specialist ,East Bethel 12090 Administrative 33,113.60 40,393.60 �'i Support Mounds View , 12733 Receptionist 32,115.20 40,144.00 /Recycling ,::. ; Coordinator ;New Prague 7081 Police Clerk- 37,107.20 46,384.00 Typist , North St. Paul 11569 Public Works 42,078.40 50,232.00 � � Office Assistant � I Rogers 11500 Administrative 33,592.00 40,976.00 ! Assistant Spring Lake Park 6768 recycle/cable/sp 35,859.20 45,988.80 ecial prodjects 4 !Vadnais Heights 13071 Adminstrative 37,668.80 45,198.40 � Assistant I �Waconia ��W 10183 Receptionist 34,444.80 40,518.40 � Cashier iAverage $35,993.24 $44,142.22 i----- iSearch Results for Finance Director/Auditor/Treasurer. Metro cities population ,�w;k}`�$;�p x. ��,. �; �.�, i �+s ��,.. ,y�e, ,';' u�.,� ' � a e Arden Hills 10137 74,847.00 93,558.00 g ICircle Pines � ; 5279 71,073.59 93,516.80� East Bethel 12090 74,526.41 90,875.20 I Falcon Heights � 5762 � � �Hugo 13140 79,479.00 103,539.00 iJordan 5402 59,304.00 78,024.00 � ILittle Canada 10036 73,102.00 92,016.00 I Mendota Heights � 11766 78,725.00 95,689.00 Minnetrista 6296 71,718.40 89,648.00 i Mound 9787 82,066.00 102,572.00 �ounds View 12733 74,900.80 93,620.80 IOrono 7980 71,171.10 94,894.80 „..�.n..,��.......�. .M.�..�.�. ,.�„�,.�. Mw iRogers 11500,� 76;273.59 93,017.60 ____ _ .._.,...o..�...M.�..�.. !Shorewood 7618 88,059.00 107,628.00 �..�... _ __._ __.� ____._..,.�..,. ...., . .�.....�,. �South Lake Minnetonka Police 12233 �pept yY ISt. Anthony Village 8437 83,324.00 104,769.00 �St. Francis 7455 73,985.60 92,47b.80 � ',St. Paul Park�� 5221 �� -- --- --�w _ Vadnais Heights 13071 83,075.20 99,673.59 ; !Victoria 6727 65,424.00 81,780.00 jWaconia �� 10183 79,064.00 93,016.00 ;Average $75,562.15 $94,461.92 r------ -- 'Search Results for Public Works Maintenance Worker. Metro cities population 5,000-15,000 � p,� � ti o. ° u o r Arden Hills 10137 36,649.60 51,438.40 Dayton 5072 40,580.80 51,334.40 East Bethel 12090 40,081.60 48,880.00 !Falcon Heights 5762 Hugo 13140 44,105.00 � 57;457.00 Little Canada 10036 41,932.80 52,312.00 M etrista 6296 38,459.20 49,982.40 i Minnetrista 6296 - - Mounds View 12733 46,425.60 51,584.00 New Prague 7081 42,681.60 53,352.00 j� I 40,60 .6+,�0,.. 4 7 Orono �7980 � 38,979.20 51,958.40 %Rogers 11500 42,515.20 51,854.40 �St�Anthony Village 8437 50,668.80 55,224.40 !St. Paul Park 5221 44,366.00 , 54,932.00 Vad�nais Heights 13071 43,763.20 52,416.00 i Average � $42,272.16 $52,661.64 'Search Results for Office Support-Specialist II. �' 1 ��'� j �� w, �r� �� ` � � 6f p"�� .! ,�;�'4 . i- o. '-ea � e m , e ca ;�.�°"`r�s,.i: s t�= '�'� ,s '�: o �°` Arden 10137 Metrp Office Support 37,960.00 47,444.80 Hills Specalist !Circle�~ 5279 Metro Utilities Secretary 38,958.40 51,251.20 %Pines � Dayton 5072 Metro Police Secretary 32,458.26 41,070.05 �Hugo 13140 Metro Office 39,204.00 51,073.00 ' Clerk/Receptionist ' �Little� 10036 Metro Customer Service 39,374.40 48,651.20 �Canada Representative Medina 5026 Metro Office Assistant 42,952.00 55,536.00 iMr endota 11766 Metro Police Support 41,991.00 50,491.00 �Heights Specialist 'Mounds ;� 12733 Metro Police 38,521.60 48,152.00 'View � Records/Evidence � t � p kTechnician .�...�,..,. _ _ .d,..� --....�....w�. --- ��._....�„_ ��..�...�...�_. !New 7081� Metro Planning 42,681.60 53,352.00 Prague Technician �North St. 11569 Metro Police Secretary 40,643.20 49,795.20 I Paul �--�-�-�- �Spring � 676& Metro Police Secretary 39,395.20 50,523.20 lake Park ISt. 8437 Metro 60ffice 42,328.00 �Anthony Support/Data � IVillage Entry Clerk ' iSt. Paul � � 5221 Metro Administrative 39,873.00 47,008.00 � Park Assistant �Vadnais 13071� Metro Administrative 39,936.00 47,923.20 jHeights Assistant II Victoria 6727 Metro Administrative 37,954.00 47,442.00 � � �.._.,..�._.._..,�_ ------ Assistant y�...r � Waconia � � 10183 Metro 'Office Assistant ' 38,937.60 ` 45,822.40� I Un-aged � i iAverage $36,927.52 $48,616.45 ;Search Results for Utilities Billing Clerk.� ' o, , ,� �.,,';�� .�: � ��'��: F � ; .'. w-,_Ny...:�Y F : C � il � '� ,Arden Hills � 10137 41,288.00 51,604.80 � — �t �Circle Pines �l��5279; 39,665.60w 52,187a20 6 Hugo 13140 39,204.00 51,073.00 �� 'Jordan 5402 32,635.20 42,952.00 New Prague 7081 38,812.80 48,526.40 North St. Paul 11569 45,468.80 55,931.20 Orono 7980 37,460.80 49,940.80 Rogers 11500 37,793.60 46,092.80 ISpring Lake Park 6768 35,318.40 45,281.60 , �St. Anthony 8437 0 47,257.60 �Village & �St Paul Park 5221 43,133.00 " 51,064.00 ',Average $35,525.47 $49,264.67 i Search Results for Director Of Public Works 5-15,000. � ^ �V i � f �. ^nd . � b en Arden Hills 10137 Public Works Director/City 74,847.00 93,558.00 , Engineer !Circle Pines � �5279�Public Works/Gas 63,752.00 83,886.41 Superintendent Dayton r� 5072 Public Works Director 74,591.47 94,382.01 East Bethel 12090 Pubiic Works Manager 70,304.00 90,875.20 Falcon Neights 5762 Parks & Public Works�� Director 'Hugo 13140 Public Works Director 79,479.00 103,539.00 ' � — ;_..�..e.. __..,..... .,�. �. !Jordan e 5402 Public Works Director 58,836.00 77,412.00 ; r � � iMedina �� 5026 Public Works Director 67,870.40 86,486.40 �Mound - 9787 Public Works Director 78,525.00 �98,157.00 i Mounds View 12733 Public Works Director 78,249.60 �97,801.60 i Oak Grove 8579 Director of Public Works 69,409.60 83,283.20 � �...� rono F __.__ _,,...�.�..�.....�.,.e..... O � 7980 Public Works Director/City 71,171.10 94,894.80 Engineer ;�� 'Rogers �11500 Public Works Supt. 76,273.59 93,017.60 . IShorewood 7618�Director of Public Works 92,552.00 113,119.00 Spring Lake 6768 Director of Public Works 63,523.20 81,452.80�. Park � ;St. Anthony � 8437�Public Works Director � 77,500.80 � 96,865.60 �I V i I I a g e F ��. ,�TM..,�„��,�,..a � St. Francis 7455'Public Works Director 68,764.80 85,945.60� !St. Paul Park 5221 Public Works Supervisor � t ;Vadnais�� w13071 City Engineer/Director of 92,268.80 110,718.40 ` Heights Public Service ;Victoria � 6727�Park and Recreation/PW 71,639.00 89,549.00 ' � �Director Waconia 10183 Director of Public Services 81,825.00 96,265.00 � Average $74,283.28 $93,221.51 i ---------- _---- -- i �Search Results for Director Of Public Works- City Engineer Pop 5-25,000. �°�{��;�, 4 ��w��, ep. �r� � _ � ...,, , �. . r, a 'k�'� �• �. . .. ..,�,,. �°:M� .x^,�;� E.° .� �,. e�� r� e ari, t1 } r' '1� Gk��,�f ��3 {L - � � - t ry s 'i ..d: ,y..g � ' N r ;n � ':.q�� u . � I ��'� � W��? �"�,� �t� ��,;.ri , � �, ��4�'. � ' p � � 4 � 3 � :; .,6��.��i? 1 t J �1�.�, o.�iJla9a�w�r. rE�� t �� ♦ f P��r�� 5� � �� ,� t� ;Anoka 17966 Public Services 87,443.20 109,304.00 ; Director/City Engineer Arden Hills 10137 Public Works Director/City 74,847.00 93,558.00 Engineer Columbia 18361 Public Works Director/City 99,330.00 119,334.00 Heights Engineer �New Bnghton 22321iDirector of Public 89,976.00 112,428.00 � Works/City Engineer (Orono �7980 Public Works Director/City 71,171.10 94,894.80 ! i �.W ,--- Engineer � Prior Lake € 23335 Public Works/Natural 87,551.00 107,208.00 i r Resource Director �Stiltwater 18235 Director of Public' �83,381.00 98,095.00� Works/City Engineer Vadnais 13071 City Engineer/Director of 92,268.80 110,718.40 �'Heights Public Service Average 85,746.01 105,692.53 Average of two surveys: 99,458 �Search Results for Building Official. � s �r. , ��' � �,�� ," ' � a ,:'\� �r � �.: ' �..�� i r .i�. � �ksy�ri�.,�a�l;', p" ° 0 d.,'�P: ti.. 3 .. �i:�'�:a_ ._. Arden Hills 10137 61,819.00 77,273.00�e �East Bethel 12090 56,243.20 68,640.00 � ;Hugo � 13140 62,798.00 81,808.00 ' �Little Canada 10036 66,905.00 76,904.00 IMendota 11766 57,107.00 69,413.00 H�eights �New Prague 7081 54,620.80 68,265.60 North St. Paul 11569 67,620.80 80,059.20 i 0rono 7980 56,915.46 75,887.28 Shorewood 7618 70,462.00 86,120.00 Spring Lake 6768 56,971.20 73,049.60 �Park ;Vadnais 13071 64,563.20 77,480.00 ;Heights �,,,�, iVictoria�� 6727�� 65,424.00 81,780.00a !Average $61,787.47 $76,389.97 I Search Results for Office Support-Specialist Itl. � � ° �� r A A \��1 �5 �� V = � � e/ � "' !1 % L J,i� 5 F Y�M i � J��ry,-� � ��i ��i u. `a m u� '� �d��- ,��"'�`�"�'fCy��i.."� a a?�."� . � ' " � . '�i�.i,�u. .u�,�.d �� ,.� .ra.�.�. . ,. Circle Pines 5279 Admin Sec-AP 39,977.60 52,624.00 � Clerk � IEast Bethel 12090 Administrative 44,116.80 53,788.80 ' Support II Hugo 13140 Community� 44,105.00 57,457.00 Development Assistant Medina 5026 Administrative � 42,952.00 55,536.00 I � Assista nt --- — -----—k jMendota 11766 SeniorSecretary 43,979.00 52,916.00 Heights Minnetrista 6296 Police Secretary 34,613.28 44,984.16 �� Mound i 9787 Department� 42,558.00 51,054.00 Secretaries (Fire, PW, & P/I) Mounds View � 12733 Technicians 43,492.80 54,371.20 � � � � 'New Prague �� 7081 Police Secretary 42,681.60 53,352.00 !North St. Paul 11569 Secretary/Electio 45,406.40 � 54,204.80 � n g Clerk/Recreation � � Coordinator � � ' .....,�....,.�.a.�..� Shorewood 7618 Administrative � 44,761.60 54,704.00 Assistant Vadnais 13071 Administrative 44,865.60 53,851.20 I Heights Assistant III Un-aged IAverage $42,792.47 $53,236.93 �Sea cr h Results for IT Technician. Pop 5-25,000 a. � ��m. � c ` �_�� i N 6 B - ¢ +�0 �k,�� Champlin 23934 Metro IT Support 49,628.80 62,046.40 Specialist IChaska 24177 Metro Network/Fie 45,822.40 59,508.80 Id Support Technician I !Average $47,725.60 $60,777.60 ----------------___�. �. ----- __�___.___..__..._�__-- 'Search Results for City Cierk and Deputy City Clerk 5-15,000 - ^wa �.r� �i j � Ai �s, u g �H. �t�J b ' G u Y Arden Hilis 10137 Metro Deputy City 51,414.00 64,266.00 � � Clerk 'Dayton 5072 Metro City Clerk 56,905.48 72,003.58 'Hugo ' 13140 Metro City Clerk 55,820.00 72,719.00 I Little Canada 10036 Metro City Clerk 60,528.00 72,072.00 �Mendota 11766 Metro City Clerk 48,546.00 59,008.00 Heights �Oronoy�� 7980 Metro City Clerk 43,929.60 '�58,572.80 Shorewood 7618 Metro Deputy City 63,611.00 77,746.00 Clerk/Execut ive Secretary � St. Anthony � 8437f Metro yCity Clerk 58,531.20 � ',Village p p � � � � ,,,�„ ,�....v...�._. ....�..: - ---- -------�- .�..�.�. ISt. Francis 7455 Metro City Clerk 61,256.00 76,564.80 ; ___ _ iSt. Pau) Park 5221, Metro �City Clerk 56,406.00 � 65,624.00 Victoria � 6727 ' Metro City Clerk 54,564.00 68,205.00 East Bethel �12090 �Metro Deputy City 53,331.20 65,041.60 � � Clerk IMinnetnsta 6296 Metro CityClerk 45,801.60 59,550.40 �North St. Paul �11569 Metro Deputy Gity 47,902.40 57,012.80 � Clerk � � ��Oak Grove 8579 Metro 'City Clerk 51,854.40 62,233.60 Rogers 11500` Metro Deputy Clerk 42,307.20 51,604.80� I � !Average 52,945.13 65,047.22 iSearch Results for Recreation Supervisor. !' � -�'r��" s; Ji � � �., d �� §�5 YG,. �a d, @ "..Y �b t:. �� 6` �4 t��,f� . � i � s , �+ • ' i .: , ��'%3�.:r�, '' Vadnais 13071 Metro Recreation 53,456.00 64,147.20� Heights � Supervisor� IWaconia 10183 Metro Recreation 50,064.00 58,898.00 P rogra m Manager Average 51,760.00 61,522.60 iSearch Results for Building Inspector. �4( 6 +�4�'� 0 �6 0 • .� �y °. �q�k•,�;, �j,. �. ti:�C�. �. .,.t , p, .�Iwp w$�L'��ci�'i.K'.�. 'Arden Hills 10137 Metro Building 51,417.60 64,272.00 � Inspector 'East Bethel 12090 Metro Building � 38,812.80 47,340.80 i Inspector i Hugo 13140 Metro Building, 49,618.00 64,638.00 � Inspector �Orono 7980 Metro On Site- 46,833.30 62,444.40 Septic Inspector Victoria 6727 Metro Building 49,830.00 62,288.00 � Inspector !A rage $47,302.34 $60,196.64 Search Results for Accountant- Experienced, General and Senior ^ ,�, � ,�-�,:; - - r 't: 'F . ,:: �t -` (l ' -k�� . F( N �.��H � j '�� t'h:# i � '.� e,�7 U ,...�+ : u. 0 ', a C.^, 5.t 3 � t��, � �'i.ns .P��+'�. � a� ��F,o"i'�ii�' .g " - e + a.t ' Arden Hills 10137 Metro Finance 51,414.00 64,266.00 Ana lyst Mounds 12733 Metro Accountant 53,227.20 66,539.20 IView �Shorewood 7618 Metro Sr. 55,348.80 67,662.40 Accountant �Spring Lake 6768 Metro Accountant 45,718.40 58,614.40 IPark `A�rden Hilis 10137 Metro Accounting 51,414.00 64,266.00 i Analyst Waconia 10183 Metro� Accountant 48,609.00 57,179.00 i Mound � 9787 Metro Accountant 54,638.00 68,284.00 jN h St. 11569 Metro Accountant- 49,628.80 59,342.40 �Paul Advanced i0rono 7980 Metro Accountant 49,923.44 66,564.59 R� ogers� 11500 Metro Accountant 47,840.00 58,344.00 ,Average 50,776.16 63,106.20 iSearch Results for Maintenance Supervisor. � �� r.n - e i: °uu a �' r `":�`� 6 r}" 4;: ` �, e Mounds 12733� Metro Parks - 52,041.60 65,062.40 View Supervisor �North St. � 11569 Metro Assistant - 74,858.00 85,951.00 �'Paul Public Works Superintend i ent , Orono 7980 Metro Public Works - 49,920.00 66,560.00 Supervisor Rogers 11500 Metro Utilities - 53,830.40 65,644.80 Supervisor Vadnais 13071 Metro Public 410 60,632.00 72,758.40 Heights Service Supervisor Average $48,547.00 $71,500.90 �Search Results for Planner--Advanced and Experienced. � '!9 S!��.5 , p � 'd" 7 �' d �-"�s ,�,,,` -� �'" ' �—� . ,, �� : �. . r� :a: K , r �iy 16 .. F '.S 6 .. f6 Y �� ti� ry 1 �t .�. �� . � � iHugo r 13140 Metro City � 1 - 62,798.00 81,808.00 � Planner ;Minnetrist 6296 Metro Senior 1 - 61,963.20 77,438.40 �a Planner Arden 10137 Metro City 1 - 55,086.00 68,856.00 Hills ` Planner IFalcon �5762 Metro Zoning& 1 - � Heights Planning j Coordinat � or !Jordan 5402 Metro Planner- 1 - 46,308.00 60,924.00 IExperienc ed � I�Medina 5026 Metro City 1 � 84 63,440.00 86,486.40� Planner ;Average � 57,919.04 75,102.56 Search Results for Deputy/Assistant Manager/Administrator. No comparison �� ,�., � ��i., ..�. ��. ,� �� `� I ��a� e d�1��: ` C,a :� n � aE6 a � � i e �i�'� � �� r s� � �' I I �; I��;�y� �� n . ��^tt'�_y�sFk�[Yda�'�' , �Circle 5279 Metro Assistant City ° 68,827.20 90,563.20 Pines Administrator for Public Services I Dayton 5072 Metro Assistant to the 74,591.47 94,382.01 � City Administrator i jMinnetrist 6296 Metro Assistant City 71,718.40 89,648.00 i a Administrator Mounds 12733 Metro Assistant City 60,028.80 75,025.60 View Administrator �Rogers � 11500 Metro Asst. City 76,273.59 93,017.60 I Administrator/Cler , k Vadnais 13071 �Metro Assistant City 68,744.00 82,513.59 � �Heights Administrator � ;Waconia 10183 Metro �Assistant City 74,663.00 87,839.00 I Administrator Un-aged Average $70,692.35 $87,569.86 Search Results for Police Chief 5-25,000 tE . ° W0 V �Anoka 17966 83,990.40 104,977.60 ;Champlin 23934 90,438.40 113,256.00 IColumbia 18361 93,306.00 112;074.00 �Heights � � �� ,Crystal 22014 93,344.22 120,014.00 Dayton , 5072 74,591.47 94,382.01 �Farmington 18959 84,667.00 122,851.00 Forest Lake 17496 95,434.47 119,293.10 Hastings 22491 87,996.69 109,995.90 H� opkins 17290 84,718.00 114,192.00 �Medina 5026 72,612.80 94,536.00 Mendota 11766 89,069.00 108,264.00 Heights Mounds View 12733 76,731.20 95,908.80 New Hope 20718 91,873.59 112,195.20 �North St. Paul � 11569� 90,240.00 103,613.00 �......�.�., --- � ` �Orono 7980 77,509.75 103,346.30 Prior Lake��23335 87,551.00��111,408.00 � _.W. ...w.,.. - __-. o,......�.� �Ramsey 23272 84,822.40 106,038.� 40 K I Rogers 11500 85,800.00 104,644.80 � R�osemount ��21521 86,670.00 108,890.00 �� South Lake 12233' Minnetonka Police Dept �. �� South St. Paul 20180 83,949J3 110,460.20 � I 'Spring Lake z 6768 70,657.60 100,900.80 � � Park � � .,..�...�.,,�...w.,. _ __.r..._.,,.�.... - --- ..�.,a...�._.� St. Anthony �� 8437 83,324.80 104,769.60� (Village � ISt. Fr�� # 7455 73,985.60 92,476.80 St. Paul Park 5221 IStillwater 18235 85,020.00 100,020.00 �WestSt. Paul 18947 92,812.20 109,190.90 u� l �...�.� �Un-aged �IAverage $84,844.65 $107,107.94 Search Results for Police/Sheriff's Captain. No comparison salary provided. � • ee �. '� • • ' • Anoka 17966 Metro Police Captain 70,990.40 88,732.80 Columbia Heights 18361 Metro Police Captain 77,364.00 87,912.00 Forest Lake 17496 Metro Police Captain 78,520.00 98,155.20 Hopkins 17290 Metro Captain 76,835.00 103,542.00 New Prague 7081 Metro Police Chief 70,720.00 88,400.00 North St. Paul 11569 Metro Police Captain 83,699.00 86,842.00 Orono 7980 Metro Deputy Chief 65,947.17 87,929.56 Rogers 11500 Metro Police Captain 67,808.00 82,680.00 South Lake Minnetonka 12233 Metro Deputy Chief St. Anthony Village 8437 Metro Captain 0 86,756.80 Stillwater 18235 Metro Police Captain 75,006.00 88,242.00 Un-aged Average $66,688.96 $89,919.24 , MINUTES OF THE ORONO CITY COUNCIL WORK SESSION Monday,August 26,2013 5:30 p.m. --- _ Present: Mayor Lili McMillan, Council Members Kristi Anderson, Lizz Levang and Aaron Printup; representing Staff were City Administrator Jessica Loftus,Assistant City Administrator Mike Gaffron,and Finance Director Ron Olson. Finance Director Ron Olson presented factors for consideration in revenue and expenditures for the 2014 budget. He requested the Council's input on the preliminary budget in preparation for the September 9`h meeting. Discussion ensued regarding specific,s e�ding items and the consensus of the Council was to pursue the following: �.—� f7 dQ�`� ?' � • Employee compensation that has eight pay steps including a "target" wage based on a market survey which also utilizes lump sum payments and a maximum step. • Eliminating the ability to choose cash in the health insurance cafeteria plan. The City Council briefly discussed their 2014 goals. The top five goals were presented and they requested the list be expanded to ten goals. Chief Farniok requested direction on school bus parking on Bayview Place. The consensus was to add signage that states "No Parking—Bus Stop"to accommodate parents waiting for the bus. Mayor McMillan updated the Council on the LMCC subcommittee. She indicated an "Engagement Agreement" with Brian Grogan would be on the next agenda for legal services. Mike Gaffron requested Council feedback regarding whether there was any interest in pursuing purchase of two separate land parcels abutting Lurton Park. The owners of these parcels have approached the City prior to marketing them. The Council indicated that funding is not available and the City has other priorities for existing park funding. Gaffron also made Council aware of a separate road outlot parcel that is being quit-claim deeded to the City adjacent to Sugar Woods. The Council was presented with a proposal for an automated phone message that could be utilized by the front desk at City Hall. The Council was comfortable with the message and requested staff continues tracking service and record any feedback received on the new automated phone message. The meeting closed at 6:50 p.m. ATTEST: Rachel Dodge, City Clerk Lili Tod McMillan, Mayor n y, ti� �`�{�;�"tiL�� i-'V \ MEMORANDUM TO: Orono City Council FROM: Jessica Loftus, City Administrator SUBJECT: Employee Compensation DATE: August 26, 2013 Employee compensation is set using the principles of equity, external market competitiveness, as well as policy objectives as established by the City Council. The City's current compensation plan as fair and equitable but needs to be reviewed to achieve the Council's strategic directives. To accomplish a flat levy for our residents, we must analyze how to contain personnel costs which are continuously rising as shown in Table 1. Table 1 - Recent history for wage increases: Consumer Year Union Non-Union Price Index 2013 1.00% 1.00% 1.70% YTD 2012 7/1 1.00% 1.00% 1.70% 2011 1.00% 1.00% 3.00% 2010 1.00% 1.00% 1.50% 2009 3.00% 3.50% 2.70% 2009 7/1 0.50% 2008 3.00% 3.00% 0.10% 2008 7/1 0.50°/a 2007 4.00% 3.00% 4.10% 2006 3.00% 3.00% 2.50% 2005 3.00% 3.00% 3.40% 2004 3.00% 3.00% 3.30% 2003 3.00% 3.00% 1.90% 2002 3.50% 3.75% 2.40% 2002 7/1 0.50% 2001 3.00% 3.25% 1.60% 2001 7/1 0.50% 2000 2.00% 2.00% 3.40% 2000 7/1 1.00% 1.00% Avera e 2.68% 2.54% 2.47% 1 Table 1 illustrates the constant pressure for wages to move up to keep pace with "inflation" or the desire to provide a simitar standard of living for employees over time. Cities, along with the federal and state government, often iook at cost-of-living adjustments (COLA) when setting salaries. One measure is the consumer price index (CPI), published by the Bureau of Labor Statistics, U.S. Department of Labor. The CPI is a measure of the average change over time in the prices paid by consumers for goods and services. Currently, the City adopts the annual resolution for compensation adjustment consisting of an across-the-baard COLA increase. The past COLA increases have been loosely based on the change in the CPI with additional consideration given to what other cities are doing and the condition of the budget/tax levy. The columns in Table 1 point out that Orono has two different employee groups for compensation purposes. One of the groups is represented by labor unions and their compensation is negotiated as part of a coltective bargaining agreement and hence cannot completefy be set into a formal pay structure. The other group is non-union employees which are compensated according the City Council's annual compensation resolution. Attachment A provides the current policy from the employee handbook. I've also attached the current 2013 position groupings and pay ranges in Attachment B. Options: As you may know, the City is considered a "service" organization that provides its residents with police protection, snow plowing, engineering, water and sewer utilities and more. As a "people —driven" or service organization, the major expenditure category in the General Fund budget is Personnel Services (wages and benefits) accounting for 65% of the 2013 budget. Because empfoyee compensation plays such a large role in the City's finances, I've listed three changes to consider which may help achieve the Council's strategic directive of containing personnel costs: 1. Consider a lump-sum only payment instead of COLA increases (similar to Hennepin County). Here is the fanguage from a recent Hennepin County union contract for your consideration: • "Employees who have 18 or more years of continuous service with the Employer as of January 1 of the current year shall receive a supplementa! cash paymenf of $150 paid over a payroll year at a rate of$5.77 per payroll period." This is essentially longevity pay (but in a lump sum) which we don't currently offer for non-union employees but longevity is provided to union employees. 2 • "A lump sum of$300 in 2013 shall be paid to benefit earning employees of record whose wage rate is equa! to or less fhan $18.00 per hour In 2013, fhis lump sum shall be paid the first full payroll period of 2013." Only one employee makes less than $18 per hour in Orono. However, setting the bar at $25 per hour would include the entire technical/administrative group and would exclude the supervisoryladministrative positions which might accomplish the same "low wage incentive" intended by this language. • "A $500 cash lump sum shal!be paid to all benefit earning employees of record effective and payable the first full payroll in 2012." It appears every Hennepin County employee was afforded a lump sum payment in their first year of the contract (2012) but only longevity and lower wage earners received a lump sum in the second year (2013). The advantage of this option is the lump sum payment does not compound the base wage thereby having less impact on the following year's budget. A possible disadvantage is employees may not perceive the onetime payment as sustainable for them to cover their costs of living in years ahead. They might also be less clear on what to expect from compensation going forward as lump-sum payments may be perceived as variable or unstable. This option could also have impacts on pay equity. For example, all non-union employees with more than 15 years of service are male. 2. Consider an employee compensation system that adds the pay steps of "target" and "maximum" and also utilizes lum� sum payments (Similar to the Cit1� of Shorewood and Edina). In this option, the City Council would determine during the budget process how much (if any) money will be set aside for increases for non-union staff. For example, the total amount of funds available in the 2014 budget by Council directive is $35,200 which equals 1.9% of existing payroll. The salary pool would then be applied in one of two ways: 1. An increase to the base salary if the current salary for the incumbent falls on the comparable range of salaries kept by the League of Minnesota Cities. 2. When the incumbent's existing salary falls above the comparable target market range then the compensation is recommended to be a one time, lump sum payment. You could also consider no payment or freezing the salary for an incumbent over the maximum range. The City would have to conduct annual external market surveys of similar positions using the League of Minnesota Cities salary survey tool. Comparables would need to 3 be selected likely including all cities in the metro area within the population range of 5,000 to 15,000 as the competitive labor market draw (see Attachment C). Each non-union job cfassification would have a base salary range consisting of: the minimum step, progressive steps for time and experience gained in the job (typically at anniversary), a target market and a maximum salary. General Plan Range Design Min/A B C D E F Target Max The city's salary table would be adjusted as necessary using the average maximum wage for each position as the "Target" rate. The starting rate or minimum step could be 75% of the target and the maximum attainable salary could be 105% of the market or some other number the City Council finds appropriate. Attachment D provides a sample of this system and a draft proposal for 2014. Advantages of this option: • This limits the COLA compounding wage increases. • Analysis is done to ensure the City's salaries are competitive with the general market for like positions in the public sector. Possible disadvantages: • Employees are less clear (a COLA % applied to all is simple) on what to expect from compensation going forward and rnay perceive it to be variable or unstable. • As demonstrated in Table 1 on page 1, the city has tried to provide equitable raises to union and non-union employees. This option will likely be viewed as changing that philosophy. • The City will be comparing itself to the rnarket more regularly in order to ensure that range maximums do not fall below the market average which may help or hurt the budget. This may become important as the City looks to recruit and retain top talent especialfy in for positions that require an advanced skill set. Questions to consider for this option: - How do you fairly measure the market for positions not easily compared to other cities? Some positions such as Planning Assistant, PZ Coordinator, Police Chief (with 20,000 population service area) or Asst. City Administrator (with planning background) aren't an exact fit with other comparables so discretion with title and population would be needed. 4 - This option may have wages for some positions going up and other being frozen which might impact our pay equity requirements by the State of Minnesota. For example, in Attachment D you will see the City Administrator position is at 101% of market but in the recent pay equity findings this position was identified as below the predicted pay based on job points and gender. The last pay equity study was conducted in 2007 by Benjamin Consulting Group. The work resulted in position evaluations to insure compliance with the Minnesota Pay Equity Act which maintains equitable compensation relationships among positions in the City. If this option moves forward the City Council might want to consider a full compensation study with classification point analysis. This study could be done in the next two years or could be completed in the 2013 budget with cost saving from Lin's position. 3. Consider increasing the number of steps in the pay scale. As you may recall, the current compensation plans are based on a six-step pay scale as amended from four steps in 2012. If an employee is started at step 1, they will reach their top step (step 6) in five years. Each step in the pay scale is approximately a 5% increase in pay. Adding two additional steps to the pay scale would result in the following table: Table 2 — Pay Steps 2011 and 2012 Proposed before 6 steps 2014 4 ste s 8 ste s tncrease between 5% 5% 3.571% ste s Startin 85% of to 75% of to 75% of to Year 1 90% 80% 78.57% Year 2 95% 85% 82.14% Year 3 100% 90% 85.71% Year 4 95% 89.28% Year 5 100% 92.86% Year 6 96.43% Year 7 100% Increasing the number of steps would stretch out the time it takes (7 years) a new employee to reach the top pay step. Perhaps this provides a longer term incentive to perform. There is only a slight cost saving associated with this change and the City Council might discuss whether this is an effective retention tool. Council might also consider whether current employees ought to be grandfathered into the pay scale that they were hired under. (Impacts 4 employees: Kyle Kirschner (CSO), Heather Gehlen (Police Admin. Assistant), Rachel Dodge (City Clerk), and Dave Klitzke (IT Tech)). 5 � _ � � ozs a�i � c ,� a� � � � � � � � � � � E � Ec �; � � � c� .� � � a, o � � m '� a. � � U ��o � �, � c� o a �, � � N i L .� � �+ � -� � � � -� � a � �, `� Q � � � � (� „"' 'Q � � a p i +'�.. � � � ,-��. � � L � � � 0 L j� a � �+ � � i � C � � O � � C a � o N � ct3 � .V � � 4 o � � � j � � � o � � N O V � 0 �� Q � � � � �a � -�i�. � � "' O U � Q� �� '� O C � �� N 'L � � � .� � -� O •� R3 `4- C Q � Q �+ � Q c� U � � E ° oo o � � a� � a � o � � � � a� a � �u � E a�i a�, a� °' aaUi � a�i � � � � " L � � � �,'mc � a� t rn a � a� a� �,.�. � � o �; �s � � � �- � � � � a•� � o � � � o,o � � � _ c� a �, y °—`�' �~ � � o, � oa' � � � �o � a'. aco � .� c � � o � �, a� a� � � � � o .� L a' � °' v, � a� °' .� .a � o � � m -� � � � � ooE � � c� _� �, � � c, "'. •'c Y v � � U � � o � �, o � �'a� ��`c o y �— w•-,.c :�, o � Qc� � �� ,� � U c`aa cvi� � N a � � v�, � �p �, � m � � � � �a � .� o, a ..� �:.., c� coa ',� � � � � ccno � oroU � a � � .� � � oQo � � a,a � � � a� � � � � � c� c� �' o � co.� � c�a � ° Q � � � � a' �, ° � � .� � .� cn .c � � � � o � � � N Q � � � � � •V N � � E N � � � � cII � � � � Q � � O �S � -� .� C - � L L � - U � I �-�c��--te,�- � CITY OF ORONO NON-UNION ADMINISTRATIVE SUPPORT/TECHNICAL/PUBLIC WORKS EMPLOYEE COMPENSATION PLAN POSITION GROUPINGS Groupin� Position in Groupina 1 Community Service Officer 2 Customer Service Assistant 3 Police Records/Secretary 4 Administrative Support Assistant 5 6 Payroll/Lltility Billing Specialist Police Office Manager 7 Public Works Maintenance Worker Planning Assistant Administrative Support/Technical/Public Works Pay Levels and Pay Ranges _ For 2013 BUDGET Start Year 1 Year 2 Year 3 Year 4 Year 5 Level Hourl Monthl Hourl Monthl Hourl Monthl Hourl Monthl Hourl Monthl Hourl Monthl 1 13.45 2,331.34 14.35 2,486.76 15.24 2,642.18 16.14 2,797.60 17.04 2,953.03 17.93 3,108.45 2 14.22 2,465.28 15.17 2,629.63 16.12 2,793.98 17.07 2,958.33 18.02 3,122.68 18.96 3,287.03 3 15.10 2,617.78 16.11 2,792.30 17.12 2,966.82 18.12 3,141.34 19.13 3,315.86 20.14 3,490.37 4 16.13 2,795.48 17.20 2,981.85 18.28 3,168.21 19.35 3,354.58 20.43 3,540.94 21.50 3,727.31 5 17.34 3,005.01 18.49 3,205.34 19.65 3,405.68 20.80 3,606.01 21.96 3,806.35 23.12 4,006.68 6 18.01 3,121.71 19.21 3,329.82 20.41 3,537.94 21.61 3,746.05 22.81 3,954.17 24.01 4,162.28 7 18.74 3,247.69 19.99 3,464.21 21.23 3,680.72 22.48 3,897.23 23.73 4,113.74 24.98 4,330.26 rolson\spreadsheets\asst\wages\Paysteps PW-Admin Support.XLS CITY OF ORONO NON-UNION SUPERVISORY/ADMINISTRATIVE EMPLOYEE COMPENSATION PLAN POSITION GROUPINGS GrouAing Position in Grouping 1 Information Technology Technician City Clerk 2 Golf Course Supervisor (E) Building Inspector ISTS/Building Inspector(E) 3 Accountant(E) City Planner (E) Public Works Supervisor 4 5 Building Official (E) Planning and Zoning Coordinatar (E) 6 7 Assistant City Administrator-Long Term Strategy (E) 8 Finance Director (E) Public Works Director/City Engineer (E) 9 Police Chief(E) 10 City Administrator(E) (E) - Exempt Compensation Plan Supervisory/Administrative Employees Pay Levels and Pay Ranges For 2013 BUDGET Level Start Year 1 Year 2 Year 3 Year 4 Year 5 Hourl Annual Hourl Annual Hourl Annual Hourl Annual Hourl Annual Hourl Annual 1 21.12 43,932.90 22.530 46,861.76 23.94 49,790.62 25.35 52,719.48 26.75 55,648.34 28.16 58,577.20 2 22.52 46,833.30 24.02 49,955.52 25.52 53,077.74 27.02 56,199.96 28.52 59,322.18 30.02 62,444.40 3 24.00 49,923.44 25.60 53,251.67 27.20 56,579.90 28.80 59,908.13 30.40 63,236.36 32.00 66,564.59 4 25.59 53,217.85 27.29 56,765.71 29.00 60,313.57 30.70 63,861.42 32.41 67,409.28 34.11 70,957.14 5 27.36 56,915.46 29.19 60,709.82 31.01 64,504.19 32.84 68,298.55 34.66 72,092.92 36.48 75,887.28 6 29.41 61,183.05 31.38 65,261.92 33.34 69,340.79 35.30 73,419.66 37.26 77,498.53 39.22 81,577.40 7 31.71 65,947.17 33.82 70,343.65 35.93 74,740.13 38.05 79,136.60 40.16 83,533.08 42.27 87,929.56 8 34.22 71,171.10 36.50 75,915.84 38.78 80,660.58 41.06 85,405.32 43.34 90,150.06 45.62 94,894.80 9 37.26 77,509.75 39.75 82,677.06 42.23 87,844.38 44.72 93,011.70 47.20 98,179.01 49.69 103,346.33 10 40.55 84,351.05 43.26 89,974.45 45.96 95,597.86 48.66 101,221.26 51.37 106,844.66 54.07 112,468.07 rolson\spreadsheets\asst\wages\PAYSTEPS Spvsr-Salaried.XLS �� Metro Cities Population 5,000-15,000 tt #k �,� "� . �a;'u.r t},�: '"`�y�'� . � ��5 3*� 'A N( a ;��,k $- �` . ( t- ,+ � m �,�, Y'`"t #� �`��.z'�,r8'..�.��`� 'i �_ . 'uF r�r p v �. ?K T s+�'., � :� ,� rtd�°1s��.CW= ,,�#x i �.�.ti . s� �,�1r 9Y3.�"�,d�� 1 . ° ��`.�,�,.�.<,m,.. � �° •..�,�� -ty .x,.'Y+�'�,a�, i � w.,.._.�.._....__....., 2i"C'� � .,... ,a.�.,::s.�aam� ..n. .. . _ _ .S'k. .'""Ck:+:�awu., _ IArden Hills 10,137 P Intergovernmental� Intergovernmental IBelle Plaine 7,191 City Employee Volunteer ICircle Pines 5,279 Intergovernmental Volunteer ICorcoran 5,842 City Employee Intergovernmental IDayton 5,072 City Employee Volunteer IEast Bethel 12,090 Intergovernmental Volunteer IFalcon Heights 5,762 Intergovernmental City Employee IHugo 13,140 N/A N/A Ilordan 5,402 City Employee Volunteer ILake Elmo 8,326 Intergovernmental Volunteer ILittle Canada 10,036 Intergovernmental Private Contractor I Mahtomedi 8,143 Intergovernmental Volunteer IMedina 5,026 City Employee Private Contractor �Mendota Heights 11,766 City Employee Volunteer IMinnetrista 6,296 City Employee Intergovernmental I Mound 9,787 Intergovernmental Volunteer IMounds View 12,733 City Employee City Employee INew Prague 7,081 City Employee Volunteer INorth St. Paul 11,569 City Employee Volunteer IOak Grove 8,579 Intergovernmental Volunteer IOrono 7,980 City Employee Private Contractor IRobbinsdale 13,775 City Employee Volunteer I Rogers 7,497 City Employee City Employee IShorewood 7,618 Intergovernmental Intergovernmental �South Lake 12;233 N/A N/A ISpring Lake Park 6,768 City Employee N/A �St.Anthony Village 8,437 City Employee City Employee ISt. Francis 7,455 City Employee City Employee ISt. Paul Park 5,221 City Employee Volunteer IVadnais Heights 13,071 Intergovernmental Volunteer I Victoria 6,727 Intergovernmenta I Volunteer IWaconia 10,183 Intergovernmental City Employee IWhite BearTownship 11,830 Intergovernmental Intergovernmental i Attachment D Sample Current Wages Compared to Average Market Maximum for 2013 Target 2014 Position Current Waqe (Averaqe Market Maximum) Percent of Market Recommendation Community Service Officer 27,976 36480 77%*** Base increase City Administrator 112,468 111,313 101% Lump sum Finance Director 94,895 94,461 100% Lump sum Public Works Maintenance 51,958 52,662 98.60% Base increase Administrative Assistant'` 44,720 51,997 86% Base increase Utiltiy Billing Clerk 49,941 49,267 101.40% Lump sum Public Works Director/ CE** 94,895 93,222 101.80% Lump sum Building Official 75,887 76,390 99.30% Base increase "please see the salary survey to note the varying position titles and the need to use discretion for comparables - I could only used the highlighted two cities or would need to expand beyond 15,000 population ""note there is not a good direct comparison for Public Works Director plus City Engineer **"example of incumbant at first step because he's a new hire I� I Sample City Administrator Current pay system Start Year 1 Year 2 Year 3 Year 4 Year 5 84,351 89,974 95,598 101,221 106,845 112,468 Option 2 system (with 8 steps plus a maximum) Min/Start Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Target Maximum (75%of target) (3.571%step) (avg. market max.) (105%of target) 83,484 87,458 91,432 95,406 99,379 103,364 107,338 111,312 116,878 I Search Results for Community Service Officer. - �r e. 'eo � �Minnetrista 6296 29,053.44 37,776.96 Mound 9787 27,040.00 35,982.00 ' Orono 7980 27,976.00 37,294.40 Rogers 11500 33,592.00 40,976.00 South Lake 12233 Minnetonka Police Dept St. Anthony 8437 0 30,368.00 Village Average $23,532.29 $36,479.47 5earch Results for City/County Administrator/Manger/Coordinator. Metro cities population 5,000-15,000 � 'r •. ' � � � ' a• le Arden Hills' 10137 Metro 93;119.00 116,399.00 Circle Pines 5279 Metro 83,928.00 110,427.20 Corcoran 5842 Metro 75,55�:00 92;147..00 Dayton 5072 Metro 91,377.76 115,622.00 East"Bethel 12090 :Metro 0 117,998.40 Falcon Heights 5762 Metro Hugo ' 1314Q fVletr.o 100,592.00 : 131,04.2.00 Jordan 5402 Metro 73,716.00 96,984.00 Little Canada 10036 1Vletro 9.5,235:00 114,000:00 Medina 5026 Metro 77,688.00 98,987.20 Mendota Heights 11766 Metro 9'1,296:00 11Q,970.00 Minnetrista 6296 Metro 95,347.20 114,420.80 Mound 9787 Metro `90,376:00 1`12,954:00 Mounds View 12733 Metro 90,084.80 112,611.20 New Prague 7081 `Nletro '84;032":00 105;040.00 Oak Grove 8579 Metro Orono 7980 IVletro 84,351.05 112,468.10 Rogers 11500 Metro 88,441.60 107,848.00 Shorewood 7618 Metro 100,339.00 122;637.00 Spring Lake Park 6768 Metro 78,707.20 100,900.80 St.Anthony Village 8437 'Metro 96;907.20 ` 121;118.40 St. Francis 7455 Metro 86,528.00 108,180.80 St.'Paul Park 5221 Nletro Vadnais Heights 13071 Metro 99,174.40 119,017.60 Victoria 6727 Metro 85,897:00 107;371.00 Waconia 10183 Metro 94,388.00 111,�45.00 Average $85,090.84 $111,312.59 Search Results for Finance Director/Auditor/Treasurer. Metro cities population .. �. . . 'Arden Hills 1��37 74,847.00 93,558.00 Circle Pines 5279 71,073.59 93,516.80 East Bethe) 12090 74,526.41 90,875.20 Falcon Heights 5762 Hugo 13140 79,479.00 103,539.00 Jordan 5402 59,304.00 78,024.00 Little Canada 10036 73,102.00 92,016:00 Mendota Heights 11766 78,725.00 95,689.00 Minnetrista 6296 71,718.40 89,648.00 Mound 9787 82,066.00 102,572.00 Mounds View 12733 74,900.80 93;620.80 Orono 7980 71,171.10 94,894.80 Rogers 11500 76,273.59 93,017.60 Shorewood 7618 88,059.00 107,628.00 South Lake Minnetonka Police 12233 Dept St. Anthony Village 8437 83,324.00 104,769.00 St. Francis 7455 73,985.60 9.2,476.80 St. Paul Park 5221 Vadnais Heights 13071 83,075.20 99,673.59 Victoria 6727 65,424.00 81,780.00 Waconia 10183 79,064.00 93,016.00 Average $75,562.15 $94,461.92 Search Resutts for Pubtic Works Maintenance Worker. Metro cities population 5,000-15,000 �, ° � 0 G 0 Arden Hills 10137 36,649:60 51,438.40 Dayton 5072 40,580.80 51,334.40 East`Bethel 12090 40,081:60 48,880<00 Falcon Heights 5762 Hugo 13140 44,105.00 57,457:00 Little Canada 10036 41,932.80 52,312.00 'Minnetrista 6296 38;459.20 49,982.40 IVlinnetrista .6296' - - Mounds View 12733 46,425.60 51,584.00 New Prague 7081 42;68'1:60 53,352.00 - Orono 7980 38,979.20 51;958:40 Rogers 11500 42,515.20 51,854.40 St. Anthony Village 8437 50,668:80 55,224:40 St. Paul Park 5221 44,366.00 54,932.00 1/adnais Heights 13071 43,763.20 52,416.00 Average $42,272.16 $52,661.64 Search Results for Administrative Assistant. •. •.• • f • r . o s � Corcoran 5842 Office Manager Grade 47,798.40 58,281.60 level 9 Jordan 5402 Administrative Assistant 41,040.00 54,012.00 Medina 5026 Assistant to City 42,952.00 60,528.00 Administrator Mendota 11766 Assistant to City 63,036.00 76,620.00 Heights Administrator Minnetrista 6296 Administrative Aide 38,459.20 49,982.40 New Prague 7081 Administrative Services 59,550.40 74,422.40 Coordinator North St. Paul 11569 Community Development 68,254.00 79;550.00 Di rector Oak Grove 8579 Executive Administrative 43,534.40 52,249.60 Assistant/HR Orono 7980 Administrative Support 33,550.40 44,720.00 Assistant Spring Lake 6768 66,684.80 85,488.00 Park St. Francis 7455 Administrative Assistant 46,612.80 58,281.60 Average $50,133.85 $63,103.24 Search Results for Utifities Billing Clerk. .. �.. . Arden Hills 10137 41,288.00 51,604.80 Circle Pines 5Z79 39,665.60 52,187.20 Hugo 13140 39,204.00 " 51,073.00 Jordan 5402 32,635.20 42,952.00 'New Prague 7081 38,812:80 ' 48,526:40 '. North St. Pau) 11569 45,468.80 55,931.20 Orono 7980 37,460.80 ; 49,940:80 : Rogers 11500 37,793.60 46,092.80 Spring Lake Park 6768 35,318:40 ` 45,281.60 : St. Anthony 8437 0 47,257.60 Village St. Paul Park 5221 43,133.00 ' S1;064.00 ` Average $35,525.47 $49,264.67 Search Results for Director Of Pubiic Works. .. , �. s . .e . a . Arden Hills 10137 Public Works Director/City 74,847.00 93,558.00 Engineer Circle Pines 5279 Public Works/Gas 63,752.00 83,886.41 Superintendent Dayton 5072 Public Works Director 74,591.47 94,382.01 East Bethel 12090 Public Works Manager 70,304.00 90,875.20 Falcon Heights 5762 Parks& Public Works Director Hugo 13140 Public Works Director 79,479.00 103,539.00 Jordan 5402 Public Works Director 58,836.00 77,412.00 Medina 5026 Public Works Director 67,870.40 86,486.40 Mound 9787 Public Works Director 78,525.00 98,157.00 Mounds View 12733 Public Works Director 78,249.60 97,801.60 Oak Grove 8579 Director of Public Works 69,409.60 83,283.20 Orono 7980 Public Works Director/City 71,171.10 94,894.80 Engineer Rogers 11500 Public Works Supt. 76,273.59 93,017.60 Shorewood 7618 Director of Public Works 92,552.00 113,119.00 Spring Lake 6768 Director of Public Works 63,523.20 81,452.80 Park St. Anthony 8437 Public Works Director 77,500.80 96,865.60 Village St. Francis 7455 Public Works Director 68,764.80 85,945.60 St. Paul Park 5221 Public Works Supervisor Vadnais 13071 City Engineer/Director of 92,268.80 110,718.40 Heights Public Service Victoria 6727 Park and Recreation/PW 71,639.00 89,549.00 Director Waconia 10183 Director of Pubtic Services 81,825.00 96,265:00 Average $74,283.28 $93,221.51 _... - 0 0 0 0 0 0 0 00 0 0 0 0 ^ O O O O Q �O N N O �D O O � m O o0 d' m ui Q1 r� O Oi O O � f� d' O O r-I l0 tn o0 N �t 00 00 M N tD o0 O� �t' N O o0 i-i O � f� f� 00 .—i tD Ol 00 O ul tD cY1 t�. � � � I� lD �Q I� (D lfl 00 1� 00 1� 1� � th O O � O O O O lD O O O O ^ O N O � O o0 00 �t O N N O � .�� rn M o0 ul 1� �.. 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Y � � � � � � v�i N v � � 0. � Y CC = � � � N � N � � vi � � � v � o }, 3 +� V � m O v C � � .� C i) C Y C � �O � cn 3 � o o �� -a . � v �n Q w 2 � � 2 Z Z O c�n va'i a > S > Q I � Predicted Pay Report for Orono 8/23/2013 Case : 2013 DATA 11000 10000 �� . . ��. 9000 , 8000 � 7000 m �a c� 6000 ♦ � i� 5000 � � ♦ 4 4000 3000 + 2000 200 300 400 500 600 700 800 900 1000 Points � ' � - �!M � � �,, ._ � . _ Page 1 of 2 � Predicted Pay Report for Orono 8/23/2013 Case: 2013 DATA Job Job Title Nbr Nbr Total Job Job Max Mo Predicted Pay Nbr Males Females Nbr Type Points Salary Pay Difference 1 Receptionist(Cust Serv Asst) 0 1 1 Female 240 $3,254.49 $2,575.18 $679.31 2 Community Service O�cer 1 0 1 Male 250 $3,077.67 $2,678.81 $398.86 4 Administrative Support Asst 0 2 2 Female 330 $3,690.41 $3,509.60 $180.81 5 Payroll/Utility Billing 0 1 1 Female 330 $4,121.07 $3,509.60 $611.47 6 Deputy Clerk/Webmaster 0 1 1 Female 350 $4,121.07 $3,743.83 $377.24 7 Police Office Manager 0 1 1 Female 350 $4,121.07 $3,743.83 $377.24 8 Planning Assistant 0 1 1 Female 398 $4,287.38 $2,699.22 $1,588.16 9 IT Technician 1 0 1 Male 438 $4,833.10 $4,340.32 $492.78 10 PW Maintenance Worker 6 0 6 Male 448 $4,287.38 $4,509.06 ($221.68) 11 Accountant 1 0 1 Male 462 $5,492.13 $4,745.20 $746.93 12 ISTS/Building Inspector 1 0 1 Male 468 $5,152.18 $4,843.75 $308.43 13 Police O�cer 11 1 12 Male 502 $5,401.07 $5,230.75 $170.32 15 Golf Course Superintendent 1 0 1 Male 532 $5,152.18 $5,419.76 ($267.58) 16 City Clerk 0 1 1 Female 552 $5,492.13 $5,421.63 $70.50 17 PW Supervisor 2 0 2 Male 562 $5,492.13 $5,844.20 ($352.07) 18 Police Sergeants 4 0 4 Male 628 $6,539.87 $6,484.16 $55.71 19 Building O�cial 1 0 1 Male 628 $6,261.33 $6,484.16 ($222.83) 20 Planning&Zoning Coordinator 0 1 1 Female 642 $6,261.33 $6,694.79 ($433.46) 21 Asst City Admin-LT Strategy 1 0 1 Male 748 $7,254.91 $7,254.91 $0.00 22 Finance Director 1 0 1 Male 798 $7,829.60 $7,919.18 ($89.58) 25 Public Works Director-City Eng 1 0 1 Male 798 $7,829.60 $7,919.18 ($89.58) 23 Police Chief 1 0 1 Male 832 $8,526.93 $8,526.93 $0.00 24 City Administrator 0 1 1 Female 912 $9,004.67 $10,167.58 ($1,162.91) Job Number Count: 23 Page 2 of 2 I 0 MEMORANDUM TO: ORONO CIT`Y COL�NCIL FROM: JESSICA LOFTUS, CITY 1�DMINISTR�TOR SUBJECT: PARK COMMISSION DATE: NOVEMBER 25, 2013 During the goal setting session the City Council decided to establish a Park Commission. Council may want to discuss the kind of appointment process you'd like to see going forward. One starting point might be each Councilmember submitting a short list of resident names you think might make good Park Commissioners. Staff would contact them to see if they are interested in being appointed in January. � MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: RACHEL DODGE, CITY CLERK SUBJECT: COMMENTS REGARDING INFORMATION UPDATES DATE: NOVEMBER 25, 2013 Attached are the Information Update memos from October 25 and November 1,November 8 and November 15 for reference if Council wishes to discuss any of these items. MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENTTEAM SUBJECT: INFORMATION UPDATE DATE: OCTOBER 25, 2013 Information Update—10/25/13 • There will be a dedication service for the new Veteran's Memorial at City Hall on Monday, October 28 at 5 pm. • Public Works is finishing the installation of the new storm sewer pipe along Elm St. This is a joint project with a homeowner who is building a new house. There was an existing ditch area which was experiencing significant erosion. Even though there were erosion issues, it had not reached a point where the City was planning on making repairs to this area. Furthermore, the most cost effective solution from the City's standpoint was to utilize rip rap to stabilize the slope. In an effort to expedite the project, the homeowner offered to assist with the project and agreed to pay the additional cost to extend a culvert down the. This project will be completed either today or early next week. PW is happy to work together with residents to come up with a solution which benefits both parties. � 60 total citations were issued in the Police Department for the week of October 14— October 20. Attached is the weekly summary police report. The first page is a summary of the citations issued for the week followed by the activity report, which includes the calls for service that were entered into RMS (Records Management System). Information that is not public has been redacted. Portions of some addresses have been redacted because in some instances it's acceptable to show a block range for an incident, but not the exact address. The activity report does not include all calls our officers were dispatched to, only the calls for which reports were written. Also not included are parking tickets, written warnings and assists to other agencies. Arrests will be noted by an asterisk next to the event. The arrested person's name will be filled in, along with age and city of residence. • Additional attachments and/or links: o Weekly Management Team Notes—October 22, 2013 The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or"Reply to All"concerning information contained in this email. MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENTTEAM SUBIECT: INFORMATION UPDATE DATE: NOVEMBER 1, 2013 Information Update—11/01/13 • In response to questions from Council regarding the Lakeview Golf development review process, the attached information is provided to assist Council in responding to resident questions and prepare for the November 12 meeting. • On Wednesday Lili, Jessica and Mike attended a Met Council workshop regarding preliminary population, household and employment forecasts as part of the Thrive MSP 2040 initiative. Thrive MSP 2040 is the Twin Cities region's long-range planning effort intended to provide a regional vision for the 7-county metropolitan area for the next 25-30 years. It will provide a basis for the Systems Statements that will be distributed in 2015 to each city, defining what needs to be addressed in the mandated 2018 Comp Plan Updates. The preliminary farecasts are Met Council's ongoing attempt to reflect expectations of future growth and development. The workshop was an opportunity for local government representatives to review the forecasting process, ask questions, and learn what steps to take if the forecasts seem too high or too low. Forecast numbers for year 2040 were provided to each metro city. For Orono, Met Council is forecasting a 2040 population of 10,100 persons, an increase of 36%from the 2010 census population count of 7,437 persons. The 2010 census indicated Orono had 2,826 households, or 2.63 persons per household (pph). Met Council is forecasting 4,400 households in Orono in 2040 ( a 55% increase over 2010), or 2.30 pph. Our 2008-2030 CMP anticipated that household size would decrease over time due to 1) our aging population, and 2) an increasing proportion of future new development being life-cycle housing types at higher densities. However, the numbers Met Council is forecasting for 2040 appear to be somewhat high based on our previous assumptions regarding development numbers and types between now and 2030. It turns out that a number of inetro cities at the workshop share this same concern, that Met Council's forecasts appear to be unrealistic, based on a `demand' model rather than the realities of`supply', i.e. availability of land for development. Staff has a basic concern that if the Met Council forecasts become mandates for planning, we will be in the same boat we were in during the last Comp Plan Update process— reguiding new areas for higher density. We have an opportunity to work with Met Council staff over the coming weeks to provide an analysis of our expected development capacity based on current guiding, zoning, and developable land availability. Staff will be in contact with Met Council representatives to make our case by December 1. Updated forecasts are anticipated to be presented to the Met Counci) in the Spring of 2014. • The Mayor, Ron and Jessica met with representatives from the Hennepin County Assessor's office to discuss property valuations. Based on the period from 10/1/2012 to 10/1/2013 residential property values will be increased by around 2%. This is the first increase in values since the 2007 assessment period. The County also provided information about the impact of the proposed maximum tax levies for 2014. The information includes all taxing entities: City, County, School District, Metropolitan Council, and Other Special Taxing Districts. 56.86% of residential properties in Orono experience no increase or a reduction in taxes. Another 30.13 percent will experience an increase of less than 5%. A graph illustrating the tax consequences is attached. • A third quarter building permit comparison report is attached for your information. • Elaine Pagonis of 2740 Shadywood is appealing the court order to remove her hazardous boat house. • Public Works has finished the sewer cleaning for the year. • Additional attachments and/or links: o Weekly Management Team Notes—October 29, 2013 The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or"Reply to All"concerning information contained in this email. MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENTTEAM SUBJECT: INFORMATION UPDATE DATE: NOVEMBER 08, 2013 Information Update—11/08/13 • Public Works has finished cleaning approximately 1/5 of the City's sanitary sewer. This equates to about 67,000 lineal feet of sanitary sewer! • We got an update from the company who will be cleaning the dump site, and they have tentatively scheduled the cleanup for the week of November 25t". We are working with them to try to accelerate the cleanup of this area so it can be return to a parking area. • Attached are the Lake Minnetonka Conservation District Regular Board Meeting Agenda for November & Minutes from the October meeting. • Attached is a summary of work done by Metropolitan Mosquito Control District (MMCD) in the Orono area during the 2013 mosquito season. OCTOBER 2013 In addition to normal day-to-day business (which includes preparing PC and Council memos, letters written, and regular phone calls, etc) Planning Staff inet with a number of residents, developers, realtors etc in the month of October. Some highlights include but are not limited to the following: Site Visits—General Inquiry: • Site visit and numerous phone conversations with two property owners involved in a dispute; Site Visits—Current Permit or Land Use Application: • Site visits/meetings on site for current/upcoming applications; • Meeting on site regarding a possible average lakeshore setback variance application; Site Visits/Follow-Up—Code Enforcement: • Junk & debris; • Received a complaint about offensive Halloween decorations; staff inspected and determined there was no issue. • Met with neighbor abutting a church regarding ongoing noise and activity concerns; • Working with a builder to resolve outstanding issues in order to issue a final Certificate of Occupancy; • Several meetings/phone calls with attorney to discuss solutions for an on-going zoning violation; Meetings—Current Land Use Applications: • Met with applicants for upcoming PC or Council agenda; • Meeting with applicants to discuss golf course conversion application; • Additional meetings and pre-construction meeting with developer regarding finalization of the Pine View plat; • met with developer regarding revised sketch plan for a Navarre property; • met with applicants regarding a 7-lot RPUD subdivision; • Met with developer (& their people) regarding details, required information and plan revisions to an application for subdivision for the November PC agenda; • Met with an applicant regarding access adjacent to a City lift station; • Staff inet with consulting planner to discuss the process for the golf course conversion application(s); • Met with the property owner to discuss changes to a variance application which was tabled at PC's October meeting; Meetings—General Inquiries, Permits & Pre-Application: • Met with a landscape architect regarding changes/modifications to an approved plan; • Met with a surveyor about requirements for a permit requiring variances; • Met with a property owner on Bohns Point regarding tree removal in relation to an approved grading project; • Met with an applicant regarding a project for a columbarium; • Met with property owner and builder regarding permit and survey requirements to build a new home; • Met with a builder about after-the-fact approvals for retaining walls in conjunction with a new home; • met with potential developer and listing agent of Commercial site on Kelley Parkway to discuss implications and possibilities for re-guiding for residential use; • Met with several realtors regarding properties to be listed (What can be done? What are the setbacks? Etc); • Met with landscape architect and property owner several times regarding a proposed pool project on Countryside; • Met with an architect to discuss solutions for an upcoming project that may require variances; • Met again with a developer regarding a group home; • Met with a development planner to discuss options/requirement for finalizing an open commercial development; • Met several times with a property owner regarding an application for wetland/zoning setbacks; • Met with a Navarre business property owner to discuss a code amendment to allow a new use; • Met with a realtor regarding access issues for a property to be listed; • Pre-application meetings with a property owner for a lot line rearrangement; • Met with a realtor and property owner regarding sale of a property with utility easements; • Met with a property owner to discuss development of a currently vacant property in the Crystal Bay neighborhood; • Discussed a potential restaurant use in a currently vacant Navarre commercial property; • Two separate phone call meetings regarding 100-year floodplain issues; • Met with a contractor regarding development on a property encumbered with a number of overlapping easements; • Met with a realtor to discuss development of a property on Bohns Point; • Met several times with various people regarding "what can be done?" with a property for sate which contains an existing 3-story garage and home; • Meeting with a development planner and property owner about options for a large lakeshore: sewer, lot sizes/density, tree preservation, conservation design, dock access, etc + several emails to follow up meeting; • Met with a builder regarding the proposed grading plan and driveway slope for a building permit to construct a new home; • Met with a landscape architect to discuss requirements for a lake yard retaining wall p roj ect; • Met with a landscaper to discuss the hardcover and permit requirements; • Met with a property owner regarding construction of a small shed within the wetland setback; • Met with a realtor regarding allowed uses for a nonconforming structure/use to be sold; • Met with a builder about a project on a property with a bluff; • Met with a builder regarding half-story requirements for a new home; • Met with a landscape contractor about a project involving controlling erosion and grading with 75' of the lake; Permit and Plan Reviews: • Issued 26 building &/or zoning permits during month of October—see the attached report. Research, Follow Up & Etc: • Fielded a number of calls, emails & drop-ins regarding the golf course conversion application; • Fielded a number of calls about a proposed subdivision to be on the November PC agenda; • Worked with the PD to resolve a neighbor dispute involving tree planting and access to property; • On-going work with the administrative staff for a builder regarding a number of open/ongoing projects —status, what is outstanding?, what can be finaled?, etc. • Attended Met Council workshop regarding population forecasts • Held Planning Commission work session - continuing review of Alternative Energy Systems ordinance; • Met with developer to resolve issues found with the property title(s) involving requirements in a developers agreement for a 1990's subdivision; • Worked (still working) with a title company & property owner to modify access easements for several properties on North Shore Drive; • 51 total citations were issued in the Police Department for the week of October 28— November 4. Attached is the weekly summary police report. The first page is a summary of the citations issued for the week followed by the activity report, which includes the calls for service that were entered into RMS (Records Management System). Information that is not public has been redacted. Portions of some addresses have been redacted because in some instances it's acceptable to show a block range for an incident, but not the exact address. The activity report does not include all calls our officers were dispatched to, only the calls for which reports were written. Also not included are parking tickets, written warnings and assists to other agencies. Arrests will be noted by an asterisk next to the event. The arrested person's name will be filled in, along with age and city of residence. • Additional attachments and/or links: o Weekly Management Team Notes— November 5, 2013 o Metro Cities News — November 1, 2013 The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or"Reply to All"concerning information contained in this email. __ _ _ _ _ _. _ _ _ __ _ . _ _ _ __ _ . _ . ___ MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENTTEAM SUBJECT: INFORMATION UPDATE DATE: NOVEMBER 15, 2013 Information Update—11/15/13 • Hennepin County notified Jesse (see attached email), the City of Orono was given preliminary approval for a $25,000 grant through Hennepin County Sidewalk Participation Program. It will be going to the County Board for final approval on December 17. • There will be a Fire Advisory Meeting on Wednesday November 20th at Station 1 from 0800 - 0900 hours. Attached are the agenda and the agenda and minutes from the West Hennepin Fire Group meeting in October. • 51 total citations were issued in the Police Department for the week of October 28— November 4. Attached is the weekly summary police report. The first page is a summary of the citations issued for the week followed by the activity report, which includes the calls for service that were entered into RMS (Records Management System). Information that is not public has been redacted. Portions of some addresses have been redacted because in some instances it's acceptable to show a block range for an incident, but not the exact address. The activity report does not include all calls our officers were dispatched to, only the calls for which reports were written. Also not included are parking tickets, written warnings and assists to other agencies. Arrests will be noted by an asterisk next to the event. The arrested person's name will be filled in, along with age and city of residence. • Additional attachments and/or links: o Weekly Management Team Notes— November 12, 2013 o Metro Cities News— November 13, 2013 o Westonka Agenda, Packet & Minutes for October 2013. The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or"Reply to All"concerning information contained in this email.