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05-23-2016 Council Work Session Packet
City Council Work Session 5:00 p.m. Monday, May 23, 2016 Orono City Hall AGENDA 1. Hennepin County Assessing Contract (10 Minutes) 2. City Administrator Verbal Update (10 Minutes) 3. 2017 Budget Goals (20 Minutes) 4. Road Funding and Planning (55 Minutes) 5. Planning Packet Information (10 Minutes) Previous Work Session Topics April 25, 2016 • Hennepin County Assessor Contract - Presentation from James Atchison • Cemetery Road Parking / Ownership • Sub -Committee with Orono School • Road Funding and Planning March 28, 2016 • Bias Sensitivity Training • Police Chief Verbal Update February 22, 2016 • Comp Plan Timeline • Customer Service • Planning Commission Appointment • Lurton Park Update MEMORANDUM TO: ORONO CITY COUNCIL FROM: JESSICA LOFTUS, CITY ADMINISTRATOR SUBJECT: HENNEPIN COUNTY ASSESSING CONTRACT DATE: MAY 23, 2016 Background The current assessing contract with Hennepin County expires on July 31, 2016. In April, the Council heard a presentation (attachment 1) from the Hennepin County Assessor. Mr. Atchison answered questions regarding the service contract (attachment 2) provided by the County. Additional Information Councilmember Printup requested information on the cost per parcel for lake cities: Jurisdiction Cost Provider Total Parcels Cost per Parcel Deephaven $2,000 Hennepin County for commercial 31 64.52 Greenwood $18,324 Hennepin County 361 50.76 Orono $165,000 Hennepin County 4,339 38.03 Shorewood $116,802 Hennepin County 3,143 37.16 Minnetrista $124,029 Hennepin County 3,779 32.82 Sp ring Park $18,412 Hennepin County 585 31.47 Wayzata $56,422 Dan Distel residential; Hennepin County commercial and multi housing 1,930 29.23 Excelsior $22,464 Rolf Erickson 868 25.88 Tonka Bay $21,000 Bill Davy 829 25.33 Mound $115,638 Hennepin County 4,759 24.30 Minnetonka In house Staff Options on Page 2 Options Three options for your consideration: 1. Continue with the current provider, Hennepin County. 2. Explore part-time contract options. A few small lake communities have used part-time retirees for assessing, such as Rolf Erickson or Bill Davey, who have limited interest in a full-time community. However, a new entrepreneurial venture called Equalized Assessment Solutions (EAS) is starting to offer assessment services. They've made a proposal (attachment 3). From a service perspective, I'm concerned this group has no similar clients or experience in Hennepin County and would be responding to residents outside of normal business hours to accommodate their full-time jobs elsewhere. Below is a comparison of cost but please note it's difficult to compare apples to apples given the unknowns with EAS. Hennepin County Base cost $172,000 Total cost 172 000 EAS Base cost $141,000 All equipment and supplies $ 5,000 2 Computer rentals, external wifi Hennepin County Data fees $ 10,000 ? Every login/update is charged Clerical support S 3,000 Not sure what they need. 159 000 Any potential contract savings should be earmarked for the risk of a potential re -assessment bill from Hennepin County should our numbers not meet overall county standards. Long Lake received a large bill within the past few years for re -assessment. 3. Hire internal staff. We would need 1-2 FTE employees to perform assessing duties costing $100-200,000. Recommendation I recommend that we continue outsourcing our assessing service with Hennepin County. Their experienced staff provide good customer service to our residents which is based on thorough knowledge about high quality properties in our area. 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CU -U cu L cocu 0 0 CU CUo am -cao CLr– L 0 � � 0 0 E o o 0 0 cu 4-0 cn CD 0 N co U o0 N �c a 0 to 0 0J c .Q Z cn 0-0 c CD as C: E+ --a C5 C: Cn o a) E cn cn cncn CD a) a)cn a �o .r- o C OD 0 3:U a- 0 L O (n a� 0 .C: CD cm a� cu a) U O'Fn a� CD L L c tt-- O cu cn _0 c CU -0 = cu O O CD -00 as O� C -0> C: cu 0 CU C L a) CL CU CU 02 L 0 a L- -00 0 CL CU (L) 7 3: -0 CU CU �� E c: L E O00 V} �cni cu cn (D CU c: E= o C)-� F V cn (n L � � 0(ncu Eta Hennepin County Assessing Historical Costs Estimated Actual 2008 124,000 124,544 2009 132,000 131,428 2010 136,000 131,332 2011 135,000 134,792 2012 137,000 139,636 2013 139,000 147,281 2014 152,000 150,190 2015 159,000 160,000 2016 172,000 Contract No. A16XXXX ETC] 0:44LTA 14zII THIS AGREEMENT, Made and entered into by and between the COUNTY OF HENNEPIN, a political subdivision of the State of Minnesota, hereinafter referred to as the "COUNTY", and the CITY OF "Name of City Here", a political subdivision of the State of Minnesota, hereinafter referred to as "CITY"; WHEREAS, said CITY lies wholly within the COUNTY OF HENNEPIN and constitutes a separate assessment district; and WHEREAS, under such circumstances, the provisions of Minnesota Statutes, Section 273.072 and Minnesota Statutes, Section 471.59 permit the County Assessor to provide for the assessment of property; and WHEREAS, said CITY desires the COUNTY to perform certain assessments on behalf of said CITY; and WHEREAS, the COUNTY is willing to cooperate with said CITY by completing the assessment in a proper manner; NOW, THEREFORE, in consideration of the mutual covenants contained herein, it is agreed as follows: 1. The COUNTY shall perform the 2017, 2018, 2019, and 2020 property assessment for the CITY OF "Name of City Here" in accordance with property assessment procedures and practices established and observed by the COUNTY, the validity and reasonableness of which are hereby acknowledged and approved by the CITY. Any such practices and procedures may be changed from time to time, by the COUNTY in its sole judgment, when good and efficient assessment procedures so require. The property assessment by the COUNTY shall be composed of those assessment services which are set forth in Exhibit A, attached hereto and made a part hereof by this reference, provided that the time frames set forth therein shall be considered to be approximate only. 2. All information, records, data, reports, etc. necessary to allow the COUNTY to carry out its herein responsibilities shall be furnished to the COUNTY without charge by the CITY, and the CITY agrees to cooperate in good faith with the COUNTY in carrying out the work under this Agreement. 3. The CITY agrees to furnish, without charge, office space needed by the COUNTY at appropriate places in the CITY's offices. Such office space shall be sufficient in size to accommodate reasonably V of appraiser(s)" and any furniture placed therein. The office space shall be available for the COUNTY's use at any and all times during typical the CITY's business hours, and during all such hours the COUNTY shall be provided with levels of heat, air conditioning and ventilation as are appropriate for the seasons. 4. The CITY also agrees to provide appropriate desk and office furniture as necessary, clerical and secretarial support necessary and reasonable for the carrying out of the work herein, necessary office supplies and equipment, copying machines and fax machines and their respective supplies, and telephone service to the COUNTY, all without charge to the COUNTY. 5. It shall be the responsibility of the CITY to have available at the CITY's offices a person who has the knowledge and skill to be able to answer routine questions pertaining to homesteads and property assessment matters and to receive, evaluate and organize homestead applications. The CITY shall store all homestead applications and homestead data in secure storage meeting the requirements set by the COUNTY. (2) It shall also be the responsibility of the CITY to promptly refer any homestead application which needs investigation to the COUNTY. 6. In accordance with Hennepin County Affirmative Action Policy and the County Commissioners' policies against discrimination, no person shall be excluded from full employment rights or participation in or the benefits of any program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, ex -offender status or national origin; and no person who is protected by applicable Federal or State laws, rules and regulations against discrimination shall be otherwise subjected to discrimination. 7. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of joint venturers or co-partners between the parties hereto or as constituting the CITY as the agent, representative or employee of the COUNTY for any purpose or in any manner whatsoever. Any and all personnel of CITY or other persons, while engaged in the performance of any activity under this Agreement, shall have no contractual relationship with the COUNTY and shall not be considered employees of the COUNTY and any and all claims that may or might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against the CITY, its officers, agents, CITY or employees shall in no way be the responsibility of the COUNTY, and CITY shall defend, indemnify and hold the COUNTY, its officials, officers, agents, employees and duly authorized volunteers harmless from any and all such claims regardless of any determination of any pertinent tribunal, (3) agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the COUNTY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Re-employment Compensation, disability, severance pay and retirement benefits. 8. CITY agrees that it will defend, indemnify and hold the COUNTY, its elected officials, officers, agents, employees and duly authorized volunteers harmless from any and all liability (statutory or otherwise) claims, suits, damages, judgments, interest, costs or expenses (including reasonable attorney's fees, witness fees and disbursements incurred in the defense thereof) resulting from or caused by the negligent or intentional acts or omissions of the CITY, its officers, agents, contractors, employees or duly authorized volunteers in the performance of the responsibilities provided by this Agreement. The CITY's liability shall be governed by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including common law. 9. COUNTY agrees that it will defend, indemnify and hold the CITY, its elected officials, officers, agents, employees and duly authorized volunteers harmless from any and all liability (statutory or otherwise) claims, suits, damages, judgments, interest, costs or expenses (including reasonable attorney's fees, witness fees and disbursements incurred in the defense thereof) resulting from or caused by the negligent or intentional acts or omissions of the COUNTY, its officers, agents, contractors, employees or duly authorized volunteers in the performance of the responsibilities provided by this Agreement. The COUNTY's liability shall be governed by Minn. Stat. Chapter 466 and other applicable law, rule and regulation, including common law. (4) 10. The COUNTY shall endeavor to perform all services called for herein in an efficient manner. The sole and exclusive remedy for any breach of this Agreement by the COUNTY and for COUNTY's liability of any kind whatsoever, including but not limited to liability arising out of, resulting from or in any manner related to contract, tort, warranty, statute or otherwise, shall be limited to correcting diligently any deficiency in said services as is reasonably possible under the pertinent circumstances. 11. Neither party hereto shall be deemed to be in default of any provision of this Agreement, or for delay or failure in performance, resulting from causes beyond the reasonable control of such party, which causes shall include, but are not limited to, acts of God, labor disputes, acts of civil or military authority, fire, civil disturbance, changes in laws, ordinances or regulations which materially affect the provisions hereof, or any other causes beyond the parties' reasonable control. 12. This Agreement shall commence on August 1, 2016, and shall terminate on July 31, 2020. Either party may initiate an extension of this Agreement for a term of four (4) years by giving the other written notice of its intent to so extend prior to March 1, 2020. If the party who receives said notice of intent to extend gives written notice to the other party of its desire not to extend prior to, April 15, 2020 this Agreement shall terminate on July 31, 2020. Nothing herein shall preclude the parties, prior to the end of this Agreement, from agreeing to extend this contract for a term of four (4) years. Any extended term hereof shall be on the same terms and conditions set forth herein and shall commence on August 1, 2020. Either party may terminate this Agreement for "just cause" as determined by the Commissioner of Revenue after hearing for such a determination is held by the Commissioner of Revenue and which has been attended by representatives of COUNTY and CITY or which said (5) representatives had a reasonable opportunity to attend, provided that after such determination, any party desiring to cancel this Agreement may do so by giving the other party no less than 120 days' written notice. If the CITY should cancel this Agreement, as above provided, before the completion of the then current property assessment by the COUNTY, the CITY agrees to defend and hold the COUNTY, its officials, officers, agents, employees and duly authorized volunteers harmless from any liability that might ensue as a result of the non - completion of a property tax assessment. For the purpose of this Agreement, the term "just cause" shall mean the failure of any party hereto reasonably to perform a material responsibility arising hereunder. 13.A. In consideration of said assessment services, the CITY agrees to pay the COUNTY the sum of "Contract Dollar Amount" Thousand Dollars ($??,???) for each assessment, provided that any payment for the current year's assessment may be increased or decreased by that amount which exceeds or is less than the COUNTY's estimated cost of appraising new construction and new parcels for the current year's assessment. The amount of any increase or decrease shall be specified in the billing for the current year's assessment. 13.B. Regarding each assessment, in addition to being subject to adjustment in the above manner, said assessment cost of $??,??? may also be increased by the COUNTY if: (1) The COUNTY determines that any cost to the COUNTY in carrying out any aspect of this Agreement has increased, including but not limited to the following types of costs: new construction and new parcel appraisals, mileage Vie, postage, supplies, labor (including fringe benefits) and other types of costs, whether similar or dissimilar; and/or 2) The COUNTY reasonably determines that other costs should be included in the costs of assessment work. (6) If the COUNTY desires to increase the assessment cost pursuant to this paragraph 13(B), it shall give written notice thereof by June 15 of any year and such increase shall apply to the assessment for the calendar year next following the current calendar year. Any such notification shall specifically set forth the amount of any new construction and new parcel appraisal charges. Notwithstanding any provisions herein to the contrary, if any such increase, exclusive of any charge for the estimated costs of new construction and new parcel appraisals, exceeds seven and one half percent (7.5%) of the amount charged for the assessment for the then current calendar year, exclusive of any charge for the estimated costs of new construction and new parcel appraisals, the CITY may cancel this Agreement by giving to the COUNTY written notice thereof, provided that said cancellation notice must be received by the COUNTY not later than July 24 of the then current calendar year and said cancellation shall be effective no earlier than five (5) days after the receipt of said notice by the COUNTY and not later than July 31 of said next calendar year. Supportive records of the cost increase will be open to inspection by the CITY at such times as are mutually agreed upon by the COUNTY and CITY. Failure of the COUNTY to give the CITY a price -change notice by June 15 shall not preclude the COUNTY from giving CITY such notice after said date but prior to September 1 of any year, provided that if such price increase exceeds said ten (10%) - all as above set forth - the CITY may cancel this Agreement if the COUNTY receives notice thereof not later than thirty-nine (39) days from the date of receipt by the CITY of any said late price -change notice, provided further that any such cancellation shall be effective not earlier than five (5) days after COUNTY's receipt of said cancellation notice and not later than forty-six (46) days after the CITY's receipt of any said price -increase notice. (7) Payment for each assessment shall be made in the following manner: Approximately one-half (1/2) of the cost of an assessment (the amount payable being set forth in a bill sent by the COUNTY to the CITY) shall be paid by the CITY no later than the fifteenth (15th) day of the December which precedes the pertinent assessment year; and the remaining portion of said cost (the amount payable being set forth in a bill sent by the COUNTY to the CITY) shall be paid by the CITY no later than July 15 of the pertinent year. The COUNTY may bill the CITY after the aforesaid dates and in each such case, the CITY shall pay such bill within thirty (30) days after receipt thereof. 14. Any notice or demand, which may or must be given or made by a party hereto, under the terms of this Agreement or any statute or ordinance, shall be in writing and shall be sent registered or certified mail to the other party addressed as follows: TO CITY: Mayor, City of "Name of City" ArlrlrPcc Address. MN XXXXX TO COUNTY: Hennepin County Administrator 2300A Government Center Minneapolis, MN 55487 copies to: County Assessor Hennepin County 2103A Government Center Minneapolis, MN 55487 copies to: Assistant County Assessor Hennepin County 2103A Government Center Minneapolis, MN 55487 (8) Any party may designate a different addressee or address at any time by giving written notice thereof as above provided. Any notice, if mailed, properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt and shall be deemed received within the second business day thereafter or when it is actually received, whichever is sooner. Any notice delivered by hand shall be deemed received upon actual delivery. 15. It is expressly understood that the obligations of the CITY under Paragraphs 7, 8, 11, and 12 hereof and the obligations of the CITY which, by their sense and context, are intended to survive the performance thereof by the CITY, shall so survive the completion of performance, termination or cancellation of this Agreement. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK (9) IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by its duly authorized officers and delivered on its behalf, this day of , 2016. Reviewed by County Attorney's Office: Date: City organized under: COUNTY OF HENNEPIN STATE OF MINNESOTA By: Chair of the County Board And: Assistant/Deputy/County Administrator ATTEST: Deputy/Clerk of the County Board CITY OF "Name of Cites By: Its And: Its Statutory Option A Option B Charter (10) Contract No. A16XXXX EXHIBIT A CITY OF "Name of City Here" During the contract term, the County shall: 1. Physically inspect and revalue 20% of the real property, as required by law. 2. Physically inspect and value all new construction, additions and renovation. 3. Adjust estimated market values on those properties not physically inspected as deemed necessary per sales ratio analysis. 4. Prepare the initial assessment roll. 5. Print and mail valuation notices. 6. Respond to taxpayers regarding assessment or appraisal problems or inquiries. 7. Conduct valuation reviews prior to Board of Review or Open Book Meetings, as determined by the City — approximate dates: March through May 15. 8. Attend Board of Review or conduct Open Book Meeting. Prepare all necessary review appraisals. Approximate dates: April 1 — May 31. 9. Maintain an updated property file — current values, classification data and characteristic data. 10. Prepare divisions and combinations as required. 11. Administer the abatement process pursuant to Minn. Stat. §375.192. 12. Prepare appraisals; defend and/or negotiate all Tax Court cases. 2016 ASSESSMENT EST - X ORONO $0.00 Run Date., 061WI5 $290.00 $0.00 INDUSTRIAL - X $290.00 REYAL CYCLE I RESIDENTIAL PROPERTY TYPE # of PARCELS $21,024.00 PRICE I PP TOTAL YEARS ANNUAL BILLABLE TAXABLE PARCELS 292 $21,024.00 APARTMENT l NH 1 MHP 3 X $290.00 $870.00 COMMERCIAL 1 UTILITY 47 X $290.00 - $13,630.D0 INDUSTRIAL. 5 X $290.00 = $1,450.00 RESID 3,177 UNDER -199,999 400 X $72.00 $28,800.00 $678,811.00 200,000 - 399,999 769 X $110.00 $84,590.00 400,000 - 599,999 586 X $200.00 - $117,200.00 600,000 - 799,999 483 X $267.00 - $128,961.00 800,000 and Greater 939 X $340.00 $319.20.00 3,177 CONDOMINIUM UNIT - X, AC, AX 64 X $72.00 $3,888.00 GARAGE - XM - X $0.00 = $0.00 BLDG ON PERMA LEASE - Z - X $72.00 $0.00 FARM 33 X $136.00 = $4,488.00 LAND - All 456 X $30.00 - $13,680.00 CR 1 K 192 X $0.00 - $0.00 TOTAL TAXABLE PARCELS 3,967 $71,6,8117.00 1 5 $143,363.40 EXEMPT PARCELS ! - 326 X $35,00 = $11,375.00 1 6 = $1,895.83 TOTAL PARCELS IN MUNIC 4,292 OTHER CHARGES ADMINISTRATION FEE 5.0% of $143,363.40 $7,168.17 COURT PETITIONS X $1,000.00 = $0.00 $0.00 PAY 2012 $152,427.40 NEW CONSTRUCTION - PARCELS WITH IMPROVEMENT AMOUNTS ADDED APARTMENT - X $290.00 $0.00 COMMERCIAL - X $290.00 $0.00 INDUSTRIAL - X $290.00 $0.00 RESIDENTIAL 292 X $72.00 $21,024.00 FARM X $136.00 TOTAL NC PARCELS 292 $21,024.00 Cast per Parcel $40A1 $173,451.40 Item No. 1 MEMORANDUM To: Mayor and City Council From: Ron Olson, Finance Director Date: April 25, 2016 Subject: Hennepin County Assessing Contract Beginning with the 1999 assessment year, the City has contracted with Hennepin County for assessing services. The current four —year contract will expire on July 31, 2016. The County would like to continue to provide assessing services to the City and has sent a new four-year service agreement for our review. A copy of the proposed agreement is included for your review. The cost for the 2017 contract year is $172,000. In addition to the proposed agreement, the following is included with this memo: includes: the annual cost from 2008 to 2016; the cost calculation sheet for 2016; and the costs paid by other cities for assessing services. The annual cost information includes both the original cost estimate for the year, and the actual costs. Depending on the amount of construction, the annual charge can vary. The cost calculation sheet shows how the annual estimated cost is calculated. For residential properties, the cost charged per property increases with value. The cost calculation sheet is used by the County to calculate the cost for all of their contract cities. The 2016 contract costs for the Cities serviced by the County are included for your review. The Hennepin County Assessor, James Atchison, is here tonight to provide the council with on overview of the services provided by the County. Assessing Service Costs 2016 Assessment Year Champlin $ 172,000 Crystal $ 158,000 Dayton $ 54,000 Golden Valley $ 236,000 Greenwood $ 18,000 Hanover $ 6,400 Hopkins $ 132,000 Independence $ 55,000 Loretto $ 6,300 Medicine Lake $ 7,300 Minnetrista $ 114,000 Mound $ 112,000 New Hope $ 127,000 Orono $ 172,000 Osseo $ 25,000 Richfield $ 280,000 Rockford $ 2,100 Rogers $ 124,000 Shorewood $ 117,000 Spring Park $ 18,000 St. Anthony $ 52,000 WE ARE EQUALIZEDA-SSESSMENT SOLUTIONS Michael Vanderlinden, AMA www.linkedin.com/pub/michael-vanderlinden/49/579/338/ Professional Assessor since 2004. Ten years in the rapidly growing, second ring suburb of Plymouth and two years in the commuter suburb of Otsego. Currently licensed as an Income Qualified, Accredited Minnesota Assessor. Strong background in surveying and residential construction. Education includes BA in Public Management from Metropolitan State. Professional reference: Jake Pidde, Assistant County Assessor, Stearns County. (612)840-7953 iake.pidde(aco.stearns.mn.us Conrad Anderson, SAMA Professional Assessor since 2002. Beginning with three years at McLeod County responsible for Winsted City, Lester Prairie City, Hutchinson City and Brownton City assessments. Eleven years with Wright County, ten working as an assessor with the districts of Rockford and Hanover cities and nine in the city of Otsego. Contract work as an independent Local Assessor in Rich Valley Township and Biscay City from 2005 to 2011. Currently assigned the townships of Albion, Middieville and French Lake in and for Wright County. Strong background in agricultural, commercial and industrial properties. Education includes Ridgewater College, and continuing education through MAAO, IAAO and Kaplan 'University. Currently a candidate for RES and CAE licensure through IAAO. Professional Reference: Randy DesMarais, Retired Deputy Assessor, Wright County. (763) 682-5586 R1d586@hotmail.com INDEPENDENT CONTRACTOR AGREEMENT This independent contractor agreement (the "Agreement") is made and entered into as of August 1, 2016 (the "Effective Date") between the City of Orono (the "City"), a political subdivision of the State of ,Minnesota, and DBA Equalized Assessment Solutions (the "Contractor") (collectively, the "Parties"). The City requests the Contractor to perform services for it and may request the Contractor to perform other services in the future; and The Parties therefore agree as follows: 1.0.Term and Termination. 1.1. This Agreement takes effect immediately as of the Ettective Date, and remains in full force and effect until the Contractor has completed the Services (the "Term"), unless earlier terminated under this Section 1. 1.2. Either Party may terminate this Agreement for cause by providing the other Party written notice if the other Party: (i) is in material breach of this Agreement and has failed to cure such breach within five (5) days after its receipt of written notice of such breach provided by the non -breaching Parry; (ii) engages in any unlawful business practice related to that Party's performance under the Agreement; or (iii) files a petition for bankruptcy, becomes insolvent, acknowledges its insolvency in any manner, ceases to do business, makes an assignment for the benefit of its creditors, or has a receiver, trustee or similar party appointed for its property. 2.0.Contractor Services. 2.1. During the Term, the City may engage the Contractor to provide the following services as needed (the "Services"):The Contractor agrees to cooperate with officials of the City and Hennepin County in performing 2017 assessment services as defined in Minnesota Statute. The City agrees and acknowledges that the manner used in the performance of the assessment duties will be under the control and direction of said Contractor. The property assessment by the Contractor shall be composed of those assessment services which are set forth in Exhibit A, attached and made a part of by this reference. 2.2. The Contractor shall provide transportation and the necessary equipment to perform the Services. If the Contractor has obtained employees or agents (the "Contractor Personnel"), the Contractor shall be solely responsible for all costs associated with the Contractor Personnel. The City shall furnish all equipment and supplies necessary for the performance of the contracted services including the Hennepin County Data fee. Additionally, the City agrees to provide office space and office furniture to accommodate one appraiser and provide heat, air conditioning, clerical support, office supplies and equipment, copying machine with supplies and WIFI without charge to the contractor. 2.3. The Contractor shall attend Local Board of Review and Open book meetings on the date or dates agreed upon by the Parties. 2.4. In consideration of the services rendered by the Contractor, the City shall pay to the contractor the sum of $141,702.00 payable in 12 installments of $11,808.50 beginning the last day of August, 2016 and ending to the last day of July, 2017. Nothing in this agreement shall preclude the parties from negotiating to extend this contract for a period of four years. 3.0.Independent Contractor Status. 3.1. The Parties intend that the Contractor and any Contractor Personnel be engaged as independent contractors of City. Nothing contained in this Agreement will be construed to create the relationship of employer and employee, principal and agent, partnership or joint venture, or any other fiduciary relationship. 3.2. The Contractor may not act as agent for, or on behalf of, the City, or to represent the City, or bind the City in any manner. 3.3. The Contractor will not be entitled to worker's compensation, retirement, insurance or other benefits afforded to employees of the City. 4.0. Representations. Both Parties represent that they are fully authorized and empowered to enter into this Agreement, and that the performance of the obligations under this Agreement will not violate or infringe upon the rights of any third -party, or violate any agreement between the Parties and any other person, firm or organization or any law or governmental regulation. 5.0. Indemnification. The Contractor shall indemnify and hold harmless the City, its attiliates, and its respective officers, directors, agents and employees from any and all claims, demands, losses, causes of action, damage, lawsuits, judgments, including attorneys' fees and costs, arising out of, or relating to, the Contractor's services under this Agreement. 6.0. Liability. EXCEPT WITH RESPECT TO THE PARTIES' INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES ARISING FROM OR RELATED TO THIS AGREEMENT, INCLUDING BODILY INJURY, DEATH, LOSS OF REVENUE, OR PROFITS OR OTHER BENEFITS, AND CLAIMS BY ANY THIRD PARTY, EVEN IF THE PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATION APPLIES TO ALL CAUSES OF ACTION IN THE AGGREGATE, INCLUDING WITHOOUT LIMITATION TO BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, AND OTHER TORTS. 7.0. Disclaimer of Warranty. THE WARRA\TIES CONTAINED HEREIN ARE THE ONLY WARRANTIES MADE BY THE PARTIES HEREUNDER. EACH PARTY MAKES NO OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED, AND EXPRESSLY EXCLUDES AND DISCLAIMS ALL OTHER WARRANTIES AND REPRESENTATIONS OF ANY KIND, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON -INFRINGEMENT. THE COMPANY DOES NOT PROVIDE ANY WARRANTY THAT OPERATION OF ANY SERVICES HEREUNDER WILL BE UNINTERRUPTED OR ERROR -FREE. 8.0 Miscellaneous Provisions. 8. 1. This Agreement, and any accompanying appendices, duplicates, or copies, constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements, representations, and understandings of any kind, whether written or oral, between the Parties, preceding the date of this Agreement. 8.2. This Agreement may be amended only by written agreement duly executed by an authorized representative of each party (email is acceptable). 8.3. If any provision or provisions of this Agreement shall be held unenforceable for any reason, then such provision shall be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect for the duration of this Agreement. 8.4. This Agreement shall not be assigned by either party without the express consent of the other party. 8.5. A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege. 8.6. This Agreement is be governed by and construed in accordance with the laws of the State of Minnesota without reference to any principles of conflicts of laws, which might cause the application of the laws of another state. Any action instituted by either party arising out of this Agreement will only be brought, tried and resolved in the applicable federal or state courts having jurisdiction in the State of Minnesota. EACH PARTY HEREBY CONSENTS TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, HAVING JURISDICTION IN THE STATE OF MINNESOTA. The Parties are signing this Agreement on the date stated in the introductory clause. City of Orono IM Name: Title: Equalized Assessment Solutions By: Name: Title: EXHIBIT A During the contract term E.A.S. shall: 1. Physically inspect and revalue 20% of the real property, as required by law. 2. Physically inspect and revalue all new construction, additions and renovation. 3. Adjust estimated market values on those properties not physically inspected as deemed necessary per sales ratio analysis. 4. Prepare the initial assessment roll. 5. Respond to taxpayers regarding assessment or appraisal problems or inquiries. 5. Conduct valuation reviews prior to Local Board of Appeal and Equalization or Open Book Meetings, as determined by the City— approximate dates: March 1st through May 15. 7. Attend Local Board of Appeal and Equalization or conduct Open Book Meeting. Prepare all necessary review appraisals. Approximate dates: April 11t — May 311t. 8. Maintain an updated property file = current values, classification data and characteristic data. 9. Prepare divisions and combinations as required. 10. Assist Hennepin County with tax court petitions. MEMORANDUM To: Mayor McMillan and Orono City Council From: Ron Olson, Finance Director Subject: 2017 Budget Date: May 23, 2016 Attachments: A) Tax Levy/Rate Graph B) 2016 Year -to -Date Reports (Unadjusted) C) Council Goals D) Federal Reserve Economic Projections E) LMC Handbook Chapter 21 Budget worksheets for the 2017 General Fund budget will be distributed to departments this week. This marks the beginning of the 2017 budget process which will conclude with the adoption of the 2017 budget and tax levy on December 12, 2016. Prior to preparing a draft budget, staff would like the Council's input in the areas of the tax levy and spending priorities. This input will assist the Administrator and Finance Department in determining which department funding requests to include in the draft budget. Preliminary budget information will be presented to the Council at the June work session. A draft budget will be discussed in July. The Council's input in July will be used to prepare an updated draft budget which will be discussed at the August work session. Input from the August meeting will be incorporated into a preliminary budget which will be televised for the public at the September 12th council meeting. The preliminary budget and tax levy will be adopted on September 26tH 2017 Budtet Factors Revenue: 1) Property values have been increasing for the last few years. Last year's increase was 2.6%; the increase for 2016 (taxes collectable 2017) is currently estimated to be 7.8%. While property values themselves do not impact the City's ability to set the tax levy at a level needed to fund operations, the changing values do impact the City's tax rate. More information on the tax rate and levy can be found in attachment A. 2) Revenues for development (building permits, variances, subdivisions) have increased significantly over the past couple of years. However, at this point in the year, it is projected that the building revenue budgets will be unchanged from 2016 to 2017. 2017 Budget — Page 1 3) Interest earnings have continued to be constrained by historically low interest rates. The Federal Reserve did increase rates at the end of 2015, however this increase did not significantly change the City's projected interest earnings. There is talk of another rate increase as early as next month. They also anticipate increasing rates through 2018. Any adjustment to interest earnings will be made based on the Federal Reserve's actions, not on speculation. 4) The Mound service contract includes an inflator of 2.5% and will increase by $41,595 for 2017. Any changes in the Spring Park and Minnetonka Beach amounts will depend on the final police budget and any changes to the formula that are currently being discussed. The revenue sources identified above represent 90% of the General Fund revenue budget. The remaining revenue sources will likely be flat and are unlikely to significantly impact the overall revenue budget. Expenditures: 1. 2016 is the final year of the labor contracts with both the Patrol and Sergeant unions. Because wages represent 60% of the police budget, the contract negotiations will play an important role in the 2017 police budget. Each 1% increase in union wages represents a $36,000 increase in the budget. 2. Workers' Compensation Insurance is increasing by $28,691 in the General Fund. This is the result of an increase in our experience modification factor from .76 to 1.0. 3. The council will need to provide direction on non-union wages. Each 1% increase in non-union compensation amounts to a budget increase of $18,000. 4. 2017 is not an election year. The budget will be decreased by $16,000 to reflect the savings of not holding an election. The expenditure changes listed above are the increases that are known at this point in time. As the budget process progresses, additional increases or decreases may be identified. Issues for discussion: Tax Levy Staff is requesting guidance on the amount that the Council is comfortable with for a tax levy. At the April 25th work session, there was an indication that the council may be comfortable with an increase in taxes as long as the rate did not increase. Since 2011 the only General Fund levy has only increased by 2.1% ($84,240). Inflation has increased by 6.0% over the same time period. 2017 Budget —Page 2 The 2016 budget the council did include an additional levy increase of 3.8% ($183,000) specifically for road funding. Taxes for all purposes (roads or General Fund) can be increased by $399,000 without increasing the tax rate. Wages The wage discussion has two parts. The first is union wages. Staff is looking for guidance on an amount to include in the 2017 budget for anticipated wage increases due to union negotiations. The amount could be included in the contingency line item. The other wage discussion involves the possibility of a cost of living increase for non-union employees. From April 2015 to April 2016 the CPI has increased 1.1%. For 2016, inflation is projected to increase 1.5%. Health Insurance The contribution that the City makes toward health insurance represents a significant General Fund expenditure. In 2016 the contribution is $1,255 per month for families, and $915 per month for individuals and waivers. We have not received the final quotes for 2017 insurance costs, however we have been told that there will be a slight decrease in costs. Council can discuss whether or not to increase the 2017 insurance contribution. Council Goals A list of Council goal is included as attachment C. The Council may want to discuss how to fund these goals within the 2017 budget. Highlights include: Roads, Navarre study/improvements, Comp Plan, and legal costs for code updates. Over the next seven months there will be many budget discussions, some involving short term operating goals like the 2017 budget. Others discussions will focus on longer term funding needs like roads and the CIP. Sometimes the process can seem tedious and time consuming, other times is can be frustrating and emotional. During the process is may help to remember that the adoption of the annual budget is one of the primary responsibilities of the Council. As described in the final paragraph of attachment E, "Accurate and complete budgeting is crucial to a city. It provides sound legal, financial and ethical basis for city operations." 2017 Budget —Page 3 Attachment C - Tax Capacity Rate City of Orono Tax Capacity, Local Levy, & Tax Capacity Rates 17.325% Tax Capacity Rate 2017 Over / Under 2016 Actual Estimated TAX CAPACITY 2016 2017 Amount Percent Net Tax Capacity (To calculate rate) $28,597,714 $30,902,466 $2,304,752 8.06% LOCALLEVY Total levy all funds $4,954,480 $5,353,730 $399,250 8.06% TAX CAPACITY RATES Tax Levy General Revenue 14.045% 12.997% -1.048 4,016,500 Road Maintenance Fund 0.640% 0.592% -0.048 183,000 GO Improvement 2008 0.672% 0.622% -0.050 192,150 GO Improvement 2010 0.458% 0.424% -0.034 131,050 GO Improvement 2014 1.510% 1.397% -0.113 431,780 New Levy 0.000% 1.292% 1.292 399,250 Total Local Tax Capacity Rate 17.325% 17.325% 0.000 55 35 Page 1 40,000,000 25.000% City of Orono Tax Levy - Tax Rate - Tax Capacity 35,000,000 20.000 30,000,000 25,000,000 15.000% 20,000,000 Tax Capacity Levy Tax Rate 10.000% 15,000,000 -- 0/ 040 10,000,000 5.000% 5,000,000 0 0.000% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CITY OF ORONO REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD MAY 31. 2016 BUDGET UNEARNED PCNT TAXES 101-31010 CURRENT AD VALOREM TAXES .00 .00 4,016,500.00 4,016,500.00 .0 101-31020 DELINQUENT AD VALOREM TAXES .00 .00 .00 .00 .0 101-31040 FISCAL DISPARITIES .00 .00 .00 .00 .0 101-31050 PERSONAL PROPERTY TAX .00 .00 .00 .00 .0 101-31060 FORFIETED TAX SALE APPORTIONMT .00 .00 .00 .00 .0 101-31070 RENT CREDIT .00 .00 .00 .00 .0 101-31900 PENALTIES AND INTEREST -TAXES .00 .00 .00 .00 .0 101-32170 TOTAL TAXES .00 .00 4,016,500.00 4,016,500.00 .0 LICENSES & PERMITS 101-32100 BUSINESS LICENSES .00 .00 .00 .00 .0 101-32110 BEER & LIQUOR LICENSES .00 .00 7,000.00 7,000.00 .0 101-32120 CIGARETTE LICENSES 125.00 125.00 400.00 275.00 31.3 101-32130 COMMERCIAL DOCK LICENSES .00 .00 .00 .00 .0 101-32140 SET UP LICENSES .00 .00 .00 .00 .0 101-32150 SEPTIC LICENSES .00 .00 .00 .00 .0 101-32170 GARBAGE HAULERS LICENSES 930.00 930.00 1,100.00 170.00 84.6 101-32180 OTHER BUSINESS LICENSE/PERMIT 2,628.00 2,628.00 5,400.00 2,772.00 48.7 101-32240 DOG LICENSES 410.00 410.00 4,000.00 3,590.00 10.3 101-32510 BUILDING PERMITS 77,682.53 77,682.53 375,000.00 297,317.47 20.7 101-32520 ZONING PERMIT 678.77 678.77 1,750.00 1,071.23 38.8 101-32530 MECHANICAL/SEPTIC/OTHER 18,928.02 18,928.02 50,000.00 31,071.98 37.9 101-32590 PLUMBING PERMIT 10,474.93 10,474.93 25,000.00 14,525.07 41.9 101-33890 TOTAL LICENSES & PERMITS 111,857.25 111,857.25 469,650.00 357,792.75 23.8 OTHER GOVERNMENTS 101-33220 FEDERAL GRANT-EMRGNCY PREP .00 .00 .00 .00 .0 101-33390 FEDERAL GRANT -OTHER .00 .00 .00 .00 .0 101-33410 HACA AID .00 .00 .00 .00 .0 101-33415 MARKET VALUE CREDIT .00 .00 .00 .00 .0 101-33420 POLICE STATE AID .00 .00 200,000.00 200,000.00 .0 101-33430 POLICE TRAINING REIMBURSEMENT .00 .00 10,000.00 10,000.00 .0 101-33440 MUNICIPAL STATE AID -STREETS .00 .00 .00 .00 .0 101-33450 LOCAL GOVERNMENT AID .00 .00 .00 .00 .0 101-33460 PERA STATE AID .00 .00 7,220.00 7,220.00 .0 101-33490 STATE GRANT -OTHER 4,784.28 4,784.28 10,000.00 5,215.72 47.8 101-33610 COUNTY GRANT -RECYCLING .00 .00 .00 .00 .0 101-33800 OTHER GRANTS/AIDS .00 .00 .00 .00 .0 101-33890 GRANTS/AIDS FROM OTHER GOVTS .00 .00 .00 .00 .0 TOTAL OTHER GOVERNMENTS 4,784.28 4,784.28 227,220.00 222,435.72 2.1 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 1 CITY OF ORONO REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD MAY 31. 2016 BUDGET UNEARNED PCNT CHARGES FOR SERVICES 101-34200 ADMINISTRATIVE CHARGES FOR SVC 21,325.00 21,325.00 80,000.00 58,675.00 26.7 101-34210 GENERAL TAXABLE SALES/SERVICE 349.53 349.53 1,000.00 650.47 35.0 101-34220 ASSESSMENTS SEARCHES 120.00 120.00 300.00 180.00 40.0 101-34230 FILING FEES-ELECTIONS/PLATS 4,840.00 4,840.00 4,000.00 ( 840.00) 121.0 101-34410 PLAN CHECK/SITE EXAM FEES 78,548.62 78,548.62 175,000.00 96,451.38 44.9 101-34420 COND USE -VARIANCE -DEV FEES 17,235.00 17,235.00 35,000.00 17,765.00 49.2 101-34430 ENGINEERING & LEGAL FEES 24,896.63 24,896.63 35,000.00 10,103.37 71.1 101-34440 BLDG PERMITS -MAIL IN FEES 307.05 307.05 700.00 392.95 43.9 101-34450 ON-SITE SEPTIC PROGRAM FEES 44,640.00 44,640.00 44,500.00 ( 140.00) 100.3 101-34460 COOP AGREEMENT -INSPECTION 5,694.37 5,694.37 15,000.00 9,305.63 38.0 101-34610 COOP AGREEMENT -POLICE 1,023,339.60 1,023,339.60 2,222,500.00 1,199,160.40 46.0 101-34620 COOP AGREEMENT -ANIMAL CONTROL .00 .00 .00 .00 .0 101-34630 POLICE SPECIAL SERVICES 2,575.00 2,575.00 75,000.00 72,425.00 3.4 101-34640 FALSE ALARM FEES 550.00 550.00 4,000.00 3,450.00 13.8 101-34650 POLICE REPORTS 342.00 342.00 800.00 458.00 42.8 101-34670 POLICE RESERVE RECEIPTS .00 .00 500.00 500.00 .0 101-34680 EXPLORERS PROGRAM 823.00 823.00 .00 ( 823.00) .0 101-34810 COOP AGREEMENT -PUBLIC WORKS 4,263.40 4,263.40 3,000.00 ( 1,263.40) 142.1 101-34815 INTERDEPARTMENTAL SERVICES -PW .00 .00 .00 .00 .0 101-34820 RECYCLING PROGRAM FEES .00 .00 .00 .00 .0 TOTAL CHARGES FOR SERVICES 1,229,849.20 1,229,849.20 2,696,300.00 1,466,450.80 45.6 FINES 101-35104 OTHER FINES .00 .00 .00 .00 .0 101-35105 ADMIN CITATIONS 7,817.08 7,817.08 15,000.00 7,182.92 52.1 101-35400 COURT FINES 16,429.60 16,429.60 80,000.00 63,570.40 20.5 101-35410 DRUG TASK FORCE .00 .00 .00 .00 .0 101-35420 DOG IMPOUND FEES .00 .00 500.00 500.00 .0 101-35620 ADMINISTRATIVE 30% SHARE .00 .00 .00 .00 .0 TOTAL FINES 24,246.68 24,246.68 95,500.00 71,253.32 25.4 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 2 CITY OF ORONO REVENUES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD MAY 31. 2016 BUDGET UNEARNED PCNT 101-37699 UTILITY PENALTIES .00 .00 1,500.00 1,500.00 .0 101-37910 GREEN FEES 29,542.00 29,542.00 90,000.00 60,458.00 32.8 101-37920 RENTAL -GOLF CARTS & CLUB 7,836.00 7,836.00 32,000.00 24,164.00 24.5 101-37930 BEER SALES 940.00 940.00 7,000.00 6,060.00 13.4 101-37935 POP SALES 762.00 762.00 3,200.00 2,438.00 23.8 101-37940 CONCESSIONS -TAXABLE 698.00 698.00 2,100.00 1,402.00 33.2 101-37950 CONCESSIONS -NONTAXABLE .00 .00 .00 .00 .0 101-37960 GOLF BALL SALES 128.00 128.00 1,700.00 1,572.00 7.5 101-37970 PRO SHOP -TAXABLE 93.50 93.50 1,000.00 906.50 9.4 101-37980 PRO SHOP -NONTAXABLE 251.00 251.00 1,000.00 749.00 25.1 101-37985 GOLF COURSE PRINTS .00 .00 .00 .00 .0 101-37990 OTHER GOLF COURSE RECEIPTS 5,227.00 5,227.00 .00 ( 5,227.00) .0 101-37999 CASH OVER/SHORT .00 .00 .00 .00 .0 TOTAL MISCELLANEOUS 45,477.50 45,477.50 139,500.00 94,022.50 32.6 OTHER SOURCES & TRANSFERS IN 101-39310 INTEREST ON INVESTMENTS .00 .00 35,000.00 35,000.00 .0 101-39315 INVESTMENT DISCOUNTS/PREMIUMS .00 .00 .00 .00 .0 101-39350 INTEREST -NOW ACCOUNT 164.74 164.74 500.00 335.26 33.0 101-39610 MISCELLANEOUS REVENUE 753.15 753.15 3,000.00 2,246.85 25.1 101-39620 RENT INCOME 2,250.00 2,250.00 5,400.00 3,150.00 41.7 101-39630 CONTRIBUTIONS & DONATIONS .00 .00 .00 .00 .0 101-39640 REFUNDS & REIMBURSEMENTS 908.39 908.39 .00 ( 908.39) .0 101-39650 PAYMENTS IN LIEU OF TAXES .00 .00 .00 .00 .0 101-39670 SALE OF LAND 24,503.88 24,503.88 .00 ( 24,503.88) .0 101-39680 SALE OF EQUIPMENT 27,216.00 27,216.00 20,000.00 ( 7,216.00) 136.1 101-39920 RESIDUAL EQUITY TRANSFERS IN .00 .00 .00 .00 .0 TOTAL OTHER SOURCES & TRANSFERS IN 55,796.16 55,796.16 63,900.00 8,103.84 87.3 TOTAL FUND REVENUE 1,472,011.07 1,472,011.07 7,708,570.00 6,236,558.93 19.1 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 3 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT 101-41110-101 FULL-TIME EMPLOYEES REGULAR 7,583.40 7,583.40 18,200.00 10,616.60 41.7 101-41110-122 FICA 580.10 580.10 1,390.00 809.90 41.7 101-41110-151 WORKER'S COMP INSURANCE PREM 12.50 12.50 50.00 37.50 25.0 101-41110-301 AUDITING AND ACCT'G SERVICES .00 .00 .00 .00 .0 101-41110-433 MEMBERSHIPS 23,403.25 23,403.25 62,100.00 38,696.75 37.7 101-41110-437 TRAINING & DEVELOPMENT .00 .00 500.00 500.00 .0 101-41110-439 MEETING EXPENSES 339.54 339.54 1,000.00 660.46 34.0 101-41110-489 OTHER MISCELLANEOUS CHARGES .00 .00 .00 .00 .0 101-41300-142 TOTAL MAYOR & COUNCIL 31,918.79 31,918.79 83,240.00 51,321.21 38.4 101-41300-101 FULL-TIME EMPLOYEES REGULAR 70,857.60 70,857.60 192,350.00 121,492.40 36.8 101-41300-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 1,300.00 1,300.00 .0 101-41300-103 PART-TIME EMPLOYEES .00 .00 .00 .00 .0 101-41300-104 TEMPORARY EMPLOYEES REGULAR 3,520.00 3,520.00 10,500.00 6,980.00 33.5 101-41300-111 OTHER .00 .00 .00 .00 .0 101-41300-121 PERA 5,113.83 5,113.83 14,520.00 9,406.17 35.2 101-41300-122 FICA 5,258.49 5,258.49 15,620.00 10,361.51 33.7 101-41300-135 CITY BENEFIT CONTRIBUTION 11,595.00 11,595.00 37,020.00 25,425.00 31.3 101-41300-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-41300-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-41300-151 WORKER'S COMP INSURANCE PREM 302.50 302.50 1,210.00 907.50 25.0 101-41300-208 BOOKS & PERIODICALS .00 .00 300.00 300.00 .0 101-41300-319 PROFESSIONAL SERVICES 1,820.00 1,820.00 6,000.00 4,180.00 30.3 101-41300-331 TRAVEL EXPENSES 1,350.00 1,350.00 4,000.00 2,650.00 33.8 101-41300-340 GENERAL ADVERTISING .00 .00 .00 .00 .0 101-41300-433 MEMBERSHIPS 1,195.00 1,195.00 1,300.00 105.00 91.9 101-41300-437 TRAINING & DEVELOPMENT 2,093.06 2,093.06 3,500.00 1,406.94 59.8 101-41300-439 MEETING EXPENSES 173.74 173.74 500.00 326.26 34.8 101-41300-489 OTHER MISCELLANEOUS CHARGES 129.30 129.30 3,000.00 2,870.70 4.3 TOTAL ADMINISTRATION 103,408.52 103,408.52 291,120.00 187,711.48 35.5 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 4 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT 101-41410-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 1,000.00 1,000.00 .0 101-41410-104 TEMPORARY EMPLOYEES REGULAR .00 .00 11,800.00 11,800.00 .0 101-41410-121 PERA .00 .00 80.00 80.00 .0 101-41410-122 FICA .00 .00 80.00 80.00 .0 101-41410-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-41410-208 BOOKS & PERIODICALS .00 .00 .00 .00 .0 101-41410-221 EQUIPMENT PARTS & ACCESSORIES 1,736.00 1,736.00 2,200.00 464.00 78.9 101-41410-240 SMALL TOOLS AND MINOR EQUIP .00 .00 300.00 300.00 .0 101-41410-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-41410-322 POSTAGE .00 .00 800.00 800.00 .0 101-41410-331 TRAVEL EXPENSES .00 .00 100.00 100.00 .0 101-41410-340 GENERAL ADVERTISING .00 .00 220.00 220.00 .0 101-41410-412 BUILDING RENTALS .00 .00 .00 .00 .0 101-41410-415 OTHER EQUIPMENT RENTALS .00 .00 .00 .00 .0 101-41410-437 TRAINING & DEVELOPMENT .00 .00 100.00 100.00 .0 101-41410-439 MEETING EXPENSES .00 .00 600.00 600.00 .0 101-41410-489 OTHER MISCELLANEOUS CHARGES .00 .00 850.00 850.00 .0 TOTAL ELECTIONS 1,736.00 1,736.00 18,130.00 16,394.00 9.6 FINANCE DEPARTMENT 101-41500-101 FULL-TIME EMPLOYEES REGULAR 81,006.77 81,006.77 211,380.00 130,373.23 38.3 101-41500-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 200.00 200.00 .0 101-41500-103 PART-TIME EMPLOYEES 7,078.51 7,078.51 21,400.00 14,321.49 33.1 101-41500-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-41500-121 PERA 6,499.38 6,499.38 17,030.00 10,530.62 38.2 101-41500-122 FICA 6,237.83 6,237.83 17,370.00 11,132.17 35.9 101-41500-135 CITY BENEFIT CONTRIBUTION 14,231.54 14,231.54 52,080.00 37,848.46 27.3 101-41500-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-41500-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-41500-151 WORKER'S COMP INSURANCE PREM 332.50 332.50 1,330.00 997.50 25.0 101-41500-208 BOOKS & PERIODICALS .00 .00 .00 .00 .0 101-41500-301 AUDITING AND ACCT'G SERVICES .00 .00 .00 .00 .0 101-41500-331 TRAVEL EXPENSES .00 .00 200.00 200.00 .0 101-41500-433 MEMBERSHIPS 325.00 325.00 330.00 5.00 98.5 101-41500-437 TRAINING & DEVELOPMENT .00 .00 1,000.00 1,000.00 .0 TOTAL FINANCE DEPARTMENT 115,711.53 115,711.53 322,320.00 206,608.47 35.9 101-41550-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-41550-302 ASSESSING SERVICES .00 .00 180,000.00 180,000.00 .0 TOTAL ASSESSING .00 .00 180,000.00 180,000.00 .0 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 5 LAW/LEGAL SERVICES 101-41600-305 LEGAL -RETAINER 101-41600-306 LEGAL -PROSECUTION 101-41600-307 LEGAL -CONSULTING 101-41600-308 CODE ENFORCEMENT 101-41600-309 JAIL CHARGES TOTAL LAW/LEGAL SERVICES HUMAN SERVICES 101-41800-490 CONTRIBUTIONS TO CIVIC ORG'S TOTAL HUMAN SERVICES CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT .00 .00 .00 .00 .0 15,759.38 15,759.38 38,500.00 22,740.62 40.9 17,319.09 17,319.09 50,000.00 32,680.91 34.6 139.50 139.50 4,000.00 3,860.50 3.5 5,528.59 5,528.59 10,000.00 4,471.41 55.3 38,746.56 38,746.56 102,500.00 63,753.44 37.8 .00 .00 12,400.00 12,400.00 .0 .00 .00 12,400.00 12,400.00 .0 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 6 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT CENTRAL SERVICES 101-41900-201 OFFICE SUPPLIES 4,343.63 4,343.63 14,570.00 10,226.37 29.8 101-41900-221 EQUIPMENT PARTS & ACCESSORIES 450.58 450.58 3,000.00 2,549.42 15.0 101-41900-223 BLDG/GROUNDS MAINT. SUPPLIES 785.19 785.19 3,500.00 2,714.81 22.4 101-41900-301 AUDITING AND ACCT'G SERVICES 20,000.00 20,000.00 20,000.00 .00 100.0 101-41900-310 LOGIS-APPLICATIONS .00 .00 .00 .00 .0 101-41900-311 DATA PROCESSING COMMUNICATION .00 .00 .00 .00 .0 101-41900-312 BANK FEES 1,575.42 1,575.42 4,000.00 2,424.58 39.4 101-41900-319 PROFESSIONAL SERVICES 5,836.70 5,836.70 12,000.00 6,163.30 48.6 101-41900-321 TELEPHONE 3,995.83 3,995.83 8,000.00 4,004.17 50.0 101-41900-322 POSTAGE 9,196.30 9,196.30 11,000.00 1,803.70 83.6 101-41900-329 INTERNET/OTHER COMMUNICATIONS 3,241.75 3,241.75 8,000.00 4,758.25 40.5 101-41900-352 PRINTING & PUBLISHING 5,667.21 5,667.21 15,000.00 9,332.79 37.8 101-41900-361 GENERAL LIABILITY INS 2,500.00 2,500.00 10,000.00 7,500.00 25.0 101-41900-362 UMBRELLA LIABILITY INS 1,250.00 1,250.00 5,000.00 3,750.00 25.0 101-41900-363 BONDS INSURANCE 50.00 50.00 200.00 150.00 25.0 101-41900-364 MONEYS & SECURITIES INS .00 .00 .00 .00 .0 101-41900-365 BOILER & MACHINERY INS 325.00 325.00 1,300.00 975.00 25.0 101-41900-366 PROPERTY INSURANCE 1,250.00 1,250.00 5,000.00 3,750.00 25.0 101-41900-367 EQUIPMENT FLOATERS INS 325.00 325.00 1,300.00 975.00 25.0 101-41900-368 AUTOMOTIVE INSURANCE 1,850.00 1,850.00 7,400.00 5,550.00 25.0 101-41900-370 INSURANCE AGENT OF RECORD .00 .00 .00 .00 .0 101-41900-381 GAS & ELECTRIC 12,630.69 12,630.69 29,000.00 16,369.31 43.6 101-41900-382 WATER UTILITIES 1,148.66 1,148.66 2,500.00 1,351.34 46.0 101-41900-401 REPAIRS/MAINT-OFFICE EQUIP 3,675.30 3,675.30 16,000.00 12,324.70 23.0 101-41900-403 REPAIRS/MAINT-MISC. EQUIP 136.00 136.00 700.00 564.00 19.4 101-41900-404 REPAIRS/MAINT-BLDGS/GROUNDS 6,019.05 6,019.05 15,000.00 8,980.95 40.1 101-41900-407 JANITORIAL SERVICES 7,122.29 7,122.29 19,000.00 11,877.71 37.5 101-41900-413 OFFICE EQUIPMENT RENTAL 7,090.09 7,090.09 20,000.00 12,909.91 35.5 101-41900-416 SOFTWARE LICENSING 19,326.41 19,326.41 12,000.00 ( 7,326.41) 161.1 101-41900-440 SPECIAL EQUIPMENT REPLACEMENT 10.99 10.99 .00 ( 10.99) .0 101-41900-441 LICENSES & TAXES .00 .00 .00 .00 .0 101-41900-489 OTHER MISCELLANEOUS CHARGES 250.00 250.00 1,000.00 750.00 25.0 101-41900-512 SPEC ASSMTS ON LAND & INT .00 .00 .00 .00 .0 101-41900-750 INTEREST ON SPECIAL ASSMNTS .00 .00 .00 .00 .0 TOTAL CENTRAL SERVICES 120,052.09 120,052.09 244,470.00 124,417.91 49.1 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 7 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT POLICE DEPARTMENT 101-42110-101 FULL-TIME EMPLOYEES REGULAR 770,921.62 770,921.62 2,315,280.00 1,544,358.38 33.3 101-42110-102 FULL-TIME EMPLOYEES OVERTIME 5,355.87 5,355.87 50,000.00 44,644.13 10.7 101-42110-103 PART-TIME EMPLOYEES (534.10) ( 534.10) 53,000.00 53,534.10 ( 1.0) 101-42110-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-42110-121 PERA 118,809.85 118,809.85 359,730.00 240,920.15 33.0 101-42110-122 FICA 14,765.04 14,765.04 46,000.00 31,234.96 32.1 101-42110-135 CITY BENEFIT CONTRIBUTION 121,031.57 121,031.57 401,580.00 280,548.43 30.1 101-42110-142 UNEMPLOYMENT BENEFIT PAYMENTS 2,913.57 2,913.57 .00 ( 2,913.57) .0 101-42110-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-42110-151 WORKER'S COMP INSURANCE PREM 17,707.50 17,707.50 70,830.00 53,122.50 25.0 101-42110-201 OFFICE SUPPLIES 4,287.92 4,287.92 15,000.00 10,712.08 28.6 101-42110-208 BOOKS & PERIODICALS .00 .00 1,000.00 1,000.00 .0 101-42110-212 MOTOR FUELS & LUBRICANTS 20,834.98 20,834.98 115,000.00 94,165.02 18.1 101-42110-221 EQUIPMENT PARTS & ACCESSORIES 1,935.94 1,935.94 6,000.00 4,064.06 32.3 101-42110-223 BLDG/GROUNDS MAINT. SUPPLIES .00 .00 1,300.00 1,300.00 .0 101-42110-226 CLOTHING & PERSONAL EQUIPMENT 16,010.56 16,010.56 25,000.00 8,989.44 64.0 101-42110-228 TRAINING SUPPLIES 321.76 321.76 16,000.00 15,678.24 2.0 101-42110-229 EXPLORERS PROGRAM EXPENSES 99.00 99.00 4,000.00 3,901.00 2.5 101-42110-240 SMALL TOOLS AND MINOR EQUIP 146.76 146.76 6,000.00 5,853.24 2.5 101-42110-304 ENGINEERING -CONSULTING .00 .00 .00 .00 .0 101-42110-307 LEGAL -CONSULTING 2,309.50 2,309.50 8,000.00 5,690.50 28.9 101-42110-310 LOGIS-APPLICATIONS 25,048.00 25,048.00 82,250.00 57,202.00 30.5 101-42110-311 DATA PROCESSING COMMUNICATION 2,591.75 2,591.75 5,000.00 2,408.25 51.8 101-42110-317 ANIMAL CARE .00 .00 1,000.00 1,000.00 .0 101-42110-319 PROFESSIONAL SERVICES 11,287.65 11,287.65 14,500.00 3,212.35 77.9 101-42110-321 TELEPHONE 7,348.96 7,348.96 23,230.00 15,881.04 31.6 101-42110-322 POSTAGE 90.00 90.00 1,200.00 1,110.00 7.5 101-42110-329 INTERNET/OTHER COMMUNICATIONS 2,261.75 2,261.75 6,100.00 3,838.25 37.1 101-42110-331 TRAVEL EXPENSES .00 .00 250.00 250.00 .0 101-42110-340 GENERAL ADVERTISING .00 .00 .00 .00 .0 101-42110-352 PRINTING & PUBLISHING 1,191.47 1,191.47 1,800.00 608.53 66.2 101-42110-361 GENERAL LIABILITY INS 8,750.00 8,750.00 35,000.00 26,250.00 25.0 101-42110-362 UMBRELLA LIABILITY INS 2,500.00 2,500.00 10,000.00 7,500.00 25.0 101-42110-366 PROPERTY INSURANCE 250.00 250.00 1,000.00 750.00 25.0 101-42110-367 EQUIPMENT FLOATERS INS .00 .00 .00 .00 .0 101-42110-368 AUTOMOTIVE INSURANCE 2,250.00 2,250.00 9,000.00 6,750.00 25.0 101-42110-370 INSURANCE AGENT OF RECORD .00 .00 .00 .00 .0 101-42110-379 INSURANCE DEDUCTIBLES .00 .00 .00 .00 .0 101-42110-381 GAS & ELECTRIC 6,929.72 6,929.72 20,000.00 13,070.28 34.7 101-42110-382 WATER UTILITIES 401.73 401.73 1,200.00 798.27 33.5 101-42110-401 REPAIRS/MAINT-OFFICE EQUIP 1,778.35 1,778.35 5,000.00 3,221.65 35.6 101-42110-402 REPAIRS/MAINT-AUTO EQUIP 16,769.89 16,769.89 50,000.00 33,230.11 33.5 101-42110-403 REPAIRS/MAINT-MISC. EQUIP 1,631.32 1,631.32 8,000.00 6,368.68 20.4 101-42110-404 REPAIRS/MAINT-BLDGS/GROUNDS 2,508.97 2,508.97 6,500.00 3,991.03 38.6 101-42110-407 JANITORIAL SERVICES 5,157.52 5,157.52 15,000.00 9,842.48 34.4 101-42110-413 OFFICE EQUIPMENT RENTAL 1,789.78 1,789.78 2,800.00 1,010.22 63.9 101-42110-414 EDP/COMMUNICATIONS EQUIP RENT 7,730.17 7,730.17 20,000.00 12,269.83 38.7 101-42110-416 SOFTWARE LICENSING 12,784.74 12,784.74 10,000.00 ( 2,784.74) 127.9 101-42110-433 MEMBERSHIPS 2,640.00 2,640.00 5,500.00 2,860.00 48.0 101-42110-436 TOWING CHARGES 157.00 157.00 .00 ( 157.00) .0 101-42110-437 TRAINING & DEVELOPMENT 16,715.45 16,715.45 35,000.00 18,284.55 47.8 101-42110-439 MEETING EXPENSES 1,230.24 1,230.24 2,500.00 1,269.76 49.2 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 8 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT 101-42110-440 SPECIAL EQUIPMENT REPLACEMENT .00 .00 5,000.00 5,000.00 .0 101-42110-441 LICENSES & TAXES 1,397.00 1,397.00 1,300.00 ( 97.00) 107.5 101-42110-489 OTHER MISCELLANEOUS CHARGES 30.02 30.02 3,000.00 2,969.98 1.0 101-42110-520 BUILDINGS AND STRUCTURES .00 .00 .00 .00 .0 101-42110-550 AUTOMOTIVE EQUIPMENT 6,162.07 6,162.07 151,000.00 144,837.93 4.1 101-42110-560 FURNITURE AND FIXTURES .00 .00 .00 .00 .0 101-42110-570 OFFICE EQUIP AND FURNISHINGS .00 .00 7,000.00 7,000.00 .0 101-42110-575 IT HARDWARE & APPLICATIONS 5,378.00 5,378.00 23,000.00 17,622.00 23.4 101-42110-580 OTHER EQUIPMENT 12,445.80 12,445.80 21,000.00 8,554.20 59.3 TOTAL POLICE DEPARTMENT 1,264,124.69 1,264,124.69 4,076,850.00 2,812,725.31 31.0 FIRE PROTECTION SERVICES 101-42260-201 OFFICE SUPPLIES .00 .00 .00 .00 .0 101-42260-221 EQUIPMENT PARTS & ACCESSORIES .00 .00 .00 .00 .0 101-42260-318 FIRE SERVICES 196,738.00 196,738.00 395,150.00 198,412.00 49.8 101-42260-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-42260-381 GAS & ELECTRIC .00 .00 .00 .00 .0 TOTAL FIRE PROTECTION SERVICES 196,738.00 196,738.00 395,150.00 198,412.00 49.8 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 9 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT BUILDING & ZONING 101-42400-101 FULL-TIME EMPLOYEES REGULAR 153,551.08 153,551.08 435,010.00 281,458.92 35.3 101-42400-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 200.00 200.00 .0 101-42400-103 PART-TIME EMPLOYEES .00 .00 .00 .00 .0 101-42400-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-42400-121 PERA 11,299.86 11,299.86 32,640.00 21,340.14 34.6 101-42400-122 FICA 11,565.03 11,565.03 33,290.00 21,724.97 34.7 101-42400-135 CITY BENEFIT CONTRIBUTION 17,306.68 17,306.68 74,040.00 56,733.32 23.4 101-42400-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-42400-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-42400-151 WORKER'S COMP INSURANCE PREM 655.00 655.00 2,620.00 1,965.00 25.0 101-42400-208 BOOKS & PERIODICALS 132.00 132.00 600.00 468.00 22.0 101-42400-212 MOTOR FUELS & LUBRICANTS .00 .00 1,500.00 1,500.00 .0 101-42400-221 EQUIPMENT PARTS & ACCESSORIES .00 .00 .00 .00 .0 101-42400-226 CLOTHING & PERSONAL EQUIPMENT .00 .00 .00 .00 .0 101-42400-240 SMALL TOOLS AND MINOR EQUIP .00 .00 .00 .00 .0 101-42400-304 ENGINEERING -CONSULTING .00 .00 2,500.00 2,500.00 .0 101-42400-307 LEGAL -CONSULTING 9,951.00 9,951.00 16,000.00 6,049.00 62.2 101-42400-310 INSPECTION SERVICES 26,036.25 26,036.25 100,000.00 73,963.75 26.0 101-42400-319 PROFESSIONAL SERVICES 1,185.00 1,185.00 2,500.00 1,315.00 47.4 101-42400-331 TRAVEL EXPENSES .00 .00 1,500.00 1,500.00 .0 101-42400-340 GENERAL ADVERTISING .00 .00 .00 .00 .0 101-42400-402 REPAIRS/MAINT-AUTO EQUIP .00 .00 1,000.00 1,000.00 .0 101-42400-403 REPAIRS/MAINT-MISC. EQUIP .00 .00 .00 .00 .0 101-42400-415 OTHER EQUIPMENT RENTALS .00 .00 .00 .00 .0 101-42400-433 MEMBERSHIPS 710.00 710.00 750.00 40.00 94.7 101-42400-437 TRAINING & DEVELOPMENT 956.00 956.00 2,000.00 1,044.00 47.8 101-42400-439 MEETING EXPENSES 32.00 32.00 750.00 718.00 4.3 101-42400-441 LICENSES & TAXES 32.00 32.00 150.00 118.00 21.3 TOTAL BUILDING & ZONING 233,411.90 233,411.90 707,050.00 473,638.10 33.0 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 10 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT PUBLIC WORKS DEPARTMENT 101-43000-101 FULL-TIME EMPLOYEES REGULAR 72,880.92 72,880.92 187,680.00 114,799.08 38.8 101-43000-102 FULL-TIME EMPLOYEES OVERTIME 2,282.93 2,282.93 11,000.00 8,717.07 20.8 101-43000-121 PERA 4,956.18 4,956.18 14,900.00 9,943.82 33.3 101-43000-122 FICA 4,925.35 4,925.35 15,200.00 10,274.65 32.4 101-43000-135 CITY BENEFIT CONTRIBUTION 10,732.43 10,732.43 48,090.00 37,357.57 22.3 101-43000-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-43000-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-43000-151 WORKER'S COMP INSURANCE PREM 3,170.00 3,170.00 12,680.00 9,510.00 25.0 101-43000-208 BOOKS & PERIODICALS 169.00 169.00 170.00 1.00 99.4 101-43000-212 MOTOR FUELS & LUBRICANTS 4,289.85 4,289.85 45,600.00 41,310.15 9.4 101-43000-221 EQUIPMENT PARTS & ACCESSORIES 6,100.10 6,100.10 16,000.00 9,899.90 38.1 101-43000-222 VEHICLE EQUIPMENT & PARTS 1,281.32 1,281.32 8,000.00 6,718.68 16.0 101-43000-224 STREET MAINT. MATERIALS/SUPPLY 13,747.26 13,747.26 40,980.00 27,232.74 33.6 101-43000-226 CLOTHING & PERSONAL EQUIPMENT 1,225.34 1,225.34 3,500.00 2,274.66 35.0 101-43000-240 SMALL TOOLS AND MINOR EQUIP 498.29 498.29 1,000.00 501.71 49.8 101-43000-304 PW ENGINEERING -CONSULTING .00 .00 .00 .00 .0 101-43000-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-43000-331 TRAVEL EXPENSES .00 .00 .00 .00 .0 101-43000-340 GENERAL ADVERTISING .00 .00 .00 .00 .0 101-43000-381 GAS & ELECTRIC 1,038.84 1,038.84 4,880.00 3,841.16 21.3 101-43000-386 STREET LIGHTING 8,329.21 8,329.21 21,690.00 13,360.79 38.4 101-43000-402 REPAIRS/MAINT-AUTO EQUIP 5,539.74 5,539.74 7,000.00 1,460.26 79.1 101-43000-403 REPAIRS/MAINT-MISC. EQUIP 926.53 926.53 3,000.00 2,073.47 30.9 101-43000-404 REPAIRS/MAINT-BLDGS/GROUNDS 291.25 291.25 .00 ( 291.25) .0 101-43000-408 CONTRACTED STREET MAINT. 903.19 903.19 47,810.00 46,906.81 1.9 101-43000-409 OFFICE EQUIPMENT RENTAL .00 .00 .00 .00 .0 101-43000-414 EDP/COMMUNICATIONS EQUIP RENT .00 .00 .00 .00 .0 101-43000-415 OTHER EQUIPMENT RENTALS .00 .00 960.00 960.00 .0 101-43000-433 MEMBERSHIPS .00 .00 430.00 430.00 .0 101-43000-437 TRAINING & DEVELOPMENT 406.40 406.40 3,000.00 2,593.60 13.6 101-43000-441 LICENSES & TAXES 235.50 235.50 220.00 ( 15.50) 107.1 101-43000-489 OTHER MISCELLANEOUS CHARGES .00 .00 40.00 40.00 .0 TOTAL PUBLIC WORKS DEPARTMENT 143,929.63 143,929.63 493,830.00 349,900.37 29.2 ENGINEERING 101-43170-303 ENGINEERING -RETAINER .00 .00 .00 .00 .0 101-43170-304 ENGINEERING -CONSULTING 3,965.00 3,965.00 20,000.00 16,035.00 19.8 TOTAL ENGINEERING 3,965.00 3,965.00 20,000.00 16,035.00 19.8 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 11 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT RECYCLING PICK-UP PROGRAM 101-43270-101 FULL-TIME EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-43270-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 .00 .00 .0 101-43270-103 PART-TIME EMPLOYEES .00 .00 .00 .00 .0 101-43270-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-43270-121 PERA .00 .00 .00 .00 .0 101-43270-122 FICA .00 .00 .00 .00 .0 101-43270-135 CITY BENEFIT CONTRIBUTION .00 .00 .00 .00 .0 101-43270-151 WORKER'S COMP INSURANCE PREM .00 .00 .00 .00 .0 101-43270-221 EQUIPMENT PARTS & ACCESSORIES .00 .00 .00 .00 .0 101-43270-316 CONTRACT RECYCLING PICKUP .00 .00 .00 .00 .0 101-43270-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-43270-352 PRINTING & PUBLISHING .00 .00 .00 .00 .0 101-43270-442 SPRING,FALL,X-MAS CLEANUP .00 .00 .00 .00 .0 101-43270-444 ORGANICS RECYCLING .00 .00 .00 .00 .0 TOTAL RECYCLING PICK-UP PROGRAM .00 .00 .00 .00 .0 SPECIAL SERVICES 101-43280-102 FULL-TIME EMPLOYEES OVERTIME 4,997.43 4,997.43 35,000.00 30,002.57 14.3 101-43280-121 PERA 553.75 553.75 5,250.00 4,696.25 10.6 101-43280-122 FICA 64.30 64.30 500.00 435.70 12.9 101-43280-135 CITY BENEFIT CONTRIBUTION 3.20 3.20 .00 ( 3.20) .0 101-43280-228 TRAINING SUPPLIES .00 .00 .00 .00 .0 101-43280-304 ENGINEERING -CONSULTING 13,701.13 13,701.13 43,000.00 29,298.87 31.9 101-43280-307 LEGAL -CONSULTING 2,855.00 2,855.00 12,000.00 9,145.00 23.8 101-43280-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-43280-437 TRAINING & DEVELOPMENT .00 .00 .00 .00 .0 101-43280-800 SPECIAL PROJECTS, CONTINGENCY .00 .00 .00 .00 .0 TOTAL SPECIAL SERVICES 22,174.81 22,174.81 95,750.00 73,575.19 23.2 SPECIAL PROJECTS -CONTINGENCIES 101-43290-101 FULL-TIME EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-43290-304 ENGINEERING -CONSULTING .00 .00 .00 .00 .0 101-43290-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-43290-489 OTHER MISCELLANEOUS CHARGES .00 .00 .00 .00 .0 101-43290-510 LAND .00 .00 .00 .00 .0 101-43290-720 OPERATING TRANSFERS .00 .00 365,000.00 365,000.00 .0 101-43290-800 SPECIAL PROJECTS, CONTINGENCY 1,311.45 1,311.45 40,000.00 38,688.55 3.3 TOTAL SPECIAL PROJECTS -CONTINGENCIES 1,311.45 1,311.45 405,000.00 403,688.55 .3 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 12 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT PARKS 101-45200-101 FULL-TIME EMPLOYEES REGULAR 7,560.94 7,560.94 20,070.00 12,509.06 37.7 101-45200-102 FULL-TIME EMPLOYEES OVERTIME 106.74 106.74 .00 ( 106.74) .0 101-45200-103 PART-TIME EMPLOYEES 1,575.00 1,575.00 .00 ( 1,575.00) .0 101-45200-104 TEMPORARY EMPLOYEES REGULAR .00 .00 10,000.00 10,000.00 .0 101-45200-121 PERA 559.07 559.07 1,510.00 950.93 37.0 101-45200-122 FICA 566.11 566.11 2,300.00 1,733.89 24.6 101-45200-135 CITY BENEFIT CONTRIBUTION 577.20 577.20 3,600.00 3,022.80 16.0 101-45200-151 WORKER'S COMP INSURANCE PREM 372.50 372.50 1,490.00 1,117.50 25.0 101-45200-212 MOTOR FUELS & LUBRICANTS .00 .00 .00 .00 .0 101-45200-221 EQUIPMENT PARTS & ACCESSORIES 561.44 561.44 500.00 ( 61.44) 112.3 101-45200-223 BLDG/GROUNDS MAINT. SUPPLIES 980.46 980.46 1,500.00 519.54 65.4 101-45200-225 MISC PARK SUPPLIES 354.46 354.46 10,000.00 9,645.54 3.5 101-45200-319 PROFESSIONAL SERVICES 330.00 330.00 1,000.00 670.00 33.0 101-45200-331 TRAVEL EXPENSES .00 .00 .00 .00 .0 101-45200-381 GAS & ELECTRIC 128.60 128.60 550.00 421.40 23.4 101-45200-402 REPAIRS/MAINT-AUTO EQUIP 20.00 20.00 .00 ( 20.00) .0 101-45200-403 REPAIRS/MAINT-MISC. EQUIP .00 .00 .00 .00 .0 101-45200-404 REPAIRS/MAINT-BLDGS/GROUNDS 10,011.48 10,011.48 52,000.00 41,988.52 19.3 101-45200-415 OTHER EQUIPMENT RENTALS 357.06 357.06 3,300.00 2,942.94 10.8 101-45200-416 SOFTWARE LICENSING .00 .00 .00 .00 .0 101-45200-439 MEETING EXPENSES .00 .00 .00 .00 .0 101-45200-441 LICENSES & TAXES .00 .00 300.00 300.00 .0 101-45200-489 OTHER MISCELLANEOUS CHARGES .00 .00 .00 .00 .0 101-45200-490 CONTRIBUTIONS TO CIVIC ORG'S .00 .00 .00 .00 .0 TOTAL PARKS 24,061.06 24,061.06 108,120.00 84,058.94 22.3 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 13 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31. 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT GOLF COURSE 101-45210-090 PURCHASES FOR RESALE .00 .00 .00 .00 .0 101-45210-091 BEER FOR RESALE 1,271.85 1,271.85 3,000.00 1,728.15 42.4 101-45210-092 SOFT DRINKS FOR RESALE 1,970.32 1,970.32 4,000.00 2,029.68 49.3 101-45210-093 CONCESSIONS FOR RESALE-TXBL .00 .00 1,500.00 1,500.00 .0 101-45210-094 CONCESSIONS FOR RESALE-NONTAX 957.90 957.90 1,000.00 42.10 95.8 101-45210-095 PRO SHOP ITEMS FOR RESALE .00 .00 .00 .00 .0 101-45210-099 OTHER FOR RESALE .00 .00 .00 .00 .0 101-45210-101 FULL-TIME EMPLOYEES REGULAR 11,091.08 11,091.08 32,690.00 21,598.92 33.9 101-45210-103 PART-TIME EMPLOYEES 8,970.00 8,970.00 37,160.00 28,190.00 24.1 101-45210-104 TEMPORARY EMPLOYEES REGULAR 175.00 175.00 .00 ( 175.00) .0 101-45210-121 PERA .00 .00 3,640.00 3,640.00 .0 101-45210-122 FICA 981.74 981.74 6,660.00 5,678.26 14.7 101-45210-135 CITY BENEFIT CONTRIBUTION .00 .00 .00 .00 .0 101-45210-142 UNEMPLOYMENT BENEFIT PAYMENTS .00 .00 .00 .00 .0 101-45210-143 OPEB EXPENSE .00 .00 .00 .00 .0 101-45210-151 WORKER'S COMP INSURANCE PREM 447.50 447.50 1,790.00 1,342.50 25.0 101-45210-201 OFFICE SUPPLIES 120.76 120.76 300.00 179.24 40.3 101-45210-212 MOTOR FUELS & LUBRICANTS 1,290.80 1,290.80 5,000.00 3,709.20 25.8 101-45210-221 EQUIPMENT PARTS & ACCESSORIES 958.42 958.42 1,500.00 541.58 63.9 101-45210-223 BLDG/GROUNDS MAINT. SUPPLIES 2,523.38 2,523.38 4,500.00 1,976.62 56.1 101-45210-226 CLOTHING & PERSONAL EQUIPMENT 152.24 152.24 180.00 27.76 84.6 101-45210-240 SMALL TOOLS AND MINOR EQUIP 4.97 4.97 .00 ( 4.97) .0 101-45210-301 AUDITING AND ACCT'G SERVICES .00 .00 .00 .00 .0 101-45210-304 ENGINEERING -CONSULTING .00 .00 .00 .00 .0 101-45210-307 LEGAL -CONSULTING .00 .00 .00 .00 .0 101-45210-312 BANK FEES 111.04 111.04 1,000.00 888.96 11.1 101-45210-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-45210-321 TELEPHONE 934.20 934.20 2,200.00 1,265.80 42.5 101-45210-322 POSTAGE .00 .00 .00 .00 .0 101-45210-331 TRAVEL EXPENSES .00 .00 .00 .00 .0 101-45210-340 GENERAL ADVERTISING 500.00 500.00 1,000.00 500.00 50.0 101-45210-343 OTHER ADVERTISING .00 .00 .00 .00 .0 101-45210-352 PRINTING & PUBLISHING 369.87 369.87 .00 ( 369.87) .0 101-45210-361 GENERAL LIABILITY INS 1,875.00 1,875.00 7,500.00 5,625.00 25.0 101-45210-362 UMBRELLA LIABILITY INS 375.00 375.00 1,500.00 1,125.00 25.0 101-45210-365 BOILER & MACHINERY INS 75.00 75.00 300.00 225.00 25.0 101-45210-366 PROPERTY INSURANCE 575.00 575.00 2,300.00 1,725.00 25.0 101-45210-367 EQUIPMENT FLOATERS INS 75.00 75.00 300.00 225.00 25.0 101-45210-368 AUTOMOTIVE INSURANCE 92.50 92.50 370.00 277.50 25.0 101-45210-369 DRAM SHOP INSURANCE 613.00 613.00 .00 ( 613.00) .0 101-45210-370 INSURANCE AGENT OF RECORD .00 .00 .00 .00 .0 101-45210-379 INSURANCE DEDUCTIBLES .00 .00 .00 .00 .0 101-45210-381 GAS & ELECTRIC 1,834.83 1,834.83 8,300.00 6,465.17 22.1 101-45210-401 REPAIRS/MAINT-OFFICE EQUIP .00 .00 .00 .00 .0 101-45210-402 REPAIRS/MAINT-AUTO EQUIP 185.10 185.10 .00 ( 185.10) .0 101-45210-403 REPAIRS/MAINT-MISC. EQUIP 3,557.69 3,557.69 2,500.00 ( 1,057.69) 142.3 101-45210-404 REPAIRS/MAINT-BLDGS/GROUNDS 6,738.40 6,738.40 12,000.00 5,261.60 56.2 101-45210-409 DEPRECIATION & AMORTIZATION .00 .00 .00 .00 .0 101-45210-415 OTHER EQUIPMENT RENTALS 63.00 63.00 9,500.00 9,437.00 .7 101-45210-433 MEMBERSHIPS 269.88 269.88 250.00 ( 19.88) 108.0 101-45210-437 TRAINING & DEVELOPMENT .00 .00 150.00 150.00 .0 101-45210-438 ADMINISTRATIVE CHARGE .00 .00 .00 .00 .0 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 14 101-45210-440 SPECIAL EQUIPMENT REPLACEMENT 101-45210-441 LICENSES & TAXES 101-45210-489 OTHER MISCELLANEOUS CHARGES TOTAL GOLF COURSE TOTAL FUND EXPENDITURES NET REVENUE OVER EXPENDITURES CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 5 MONTHS ENDING MAY 31, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT .00 .00 .00 .00 .0 284.00 284.00 550.00 266.00 51.6 118.97 118.97 .00 ( 118.97) .0 49,563.44 49,563.44 152,640.00 103,076.56 32.5 2,350,853.47 2,350,853.47 7,708,570.00 5,357,716.53 30.5 (878,842.40) ( 878,842.40) .00 878,842.40 .0 FOR ADMINISTRATION USE ONLY 42 % OF THE FISCAL YEAR HAS ELAPSED 05/19/2016 02:57PM PAGE: 15 What Should Be Accomplished in 2015-2016? Top Goals (submitted by at least two or more members) Fund a ROAD maintenance & improvement program to protect assets Maintain current services and programs with lowest possible 2016 tax increase Focusing on improvements to Navarre Begin to explore the idea of mixed use/density in Navarre Continue Code Updates Build Relationships with new partners in the Lake Minnetonka area and strengthen those with existing MEMORANDUM TO: ORONO CITY COUNCIL FROM: JESSICA LOFTUS, CITY ADMINISTRATOR SUBJECT: GOALS DATE: JULY 27, 2015 In May and June the City Council worked on goal setting. Attached is the summary document for your additions, deletions, and revisions. \ m q \ \ x x � Lqk G X 4 k 6 �- CL § 2 CL E U) 0 �2 Ln � a \ / � k k §IA� ) & \ c E \ / \ 2 7 m ■ L.L- 2 ƒ J x x x x x x 4.1 2 / (U % J E E >- t § L ( U \ a § @ /t% 41 k u 0 ) \ 0 / 20 O �2 $ k k m u c k 2 i o k / 3 E ° S u L- S o » ai o O oOL « 2 2 > � 2 � E¢Ef o E r g u , § S r - f k » o LU u o » ° � - Q 9� g S 5 o E § _ $ § CL Eu G 0 . C $ \ q \ E C ' ° E g \ 0 m w C m ° w o - M § / = k 2 m 7 f R B ■ 2 o o 3r u c a 0 Z) 3 I* I tn v V- 0 .N E E 0 U Y L m CL W c � c R0 m V O > a) O I u o o I I 3 QfOi L CL CL; CL o O E 0 Z j y E o u ca O Lnar ! c c c a] 0 YL I Y U 0 •, 3 O L 0 a) c O ra 4- O r- Ln aj HLO O > O U L MU o mQ E M L a -1 c o I i O U m ++ L O 0 w i Z c 4 L aj = U cn c to O 41 i vOi � O -a v> C 4TO 1-0 vii -p N +_+ U Q O O N 75 O L W w r O } ! - 0 c y 3 I3 o u 3 m ! • • • • c a 4-0 Q. 3 ° N E 0 cu cA to a U 4. Q Q E •v � =' E f0 3 ai -Se V} cu 0 CU Y .a CU L m +� O a� L L O �••� fa ++ CL Q w o c 41 U W M U +' .O S O LM O � c o � v, c O c o , u O ay I � �' F -cu m4- > U � O •� 1 (D ! • • • E FRB: March 16, 2016: FOMC Projections materials, accessible version What's New • What's Next - Site Map - A -Z index - Careers • RSS • All Videos - Current FAQs • Contact Us Saurcr, Adva,�ced Search � .C'{ ►t,<a-i-r6)i'Z About Newt Monetary .~ Banking paymentY Economic Consumer Community Reporting the Fed & Events Policy Information Systema Research information Development Forms Publications Regulation &Data C Federal Open Market Hame > Monetary Policy a Federal Open Market Committee a Meetino calendars. Committee statements. and minutes (2011-2016) > March 15-16 Ft MC M -kng Credit and Liquidity Programs and the Accessible Version Balance Sheet e n Policy implementation Reports Advance release of table 1 of the Summary of Economic Projections to be released with the FOMC minutes - ... ....................................... ..................................................................................... .............. ........... ....... ..... Percent Median' Central tendencyi Rangel Variable Longer Lo"" Longer 2016 ,2017 2018 run 2016 2017 2018 run 2016 2017 2018 run Change :r rea' GOP 2.2 2.. 2.0 2.0 2.1 -2.3 2.0.2.3 1.8-2.1 1.8-2.1 1.9-2.5 1.7-2.3 1.6-2.3 1.8-2.4 December projection, 2.4 2.2 2.0 2.0 2.3-2.5 2.0-2.3 1A-2.2 1.8-2.2 2.0-2.7 1.8-2.5 1.7-2,4 1.8.2.3 Unemployment -ate 4.7 4.6 4.5 4.8 4.6 -4.8 4.5 - 4.7 4.5-5.0 4.7-5.0 4.5-4.9 4.3-4.9 4.3 - 5.0 4.7-5.8 December projection 4.7 4.7 4.7 4.9 4.5-4.84,6-4.8 4.6-5.0 4.8-5.0 4.3-4.9 4.5-5.0 4.5-5.3 4.7-5.8 PCEirf'ation 1.2 1.9 2.0 2.0 LO -1.8 1.7-2.0 1.9-2.0 2.0 1,9-1.6 1.6-2.0 1.8-2.0 2.0 December projector. 1.6 1.9 2.0 2.0 1.2-1.7,1.8-2.0 1.9-2.0 2.0 1.2-2.' 1.7-2.0 1.7.2.1 2.0 Core PCE inflation° 1.6 1.8 2.9 1.4-1.71.7-2.0 1.9-2.0 1,4.2.1 1.6-2.0 1.8-2.0 December pmjec;[on 1.6 1.9 2.0 1.5-1.7'1.7-2.0 1.9-2.0 1.4-2.11.6-2.0 1.7-2.1 Memo: Protected appropriate policy path Federal funds rate 0.9 1.9 3.0 33 0.9-1.4 1.6-2,4 2.5-3.3.3.0-3.5 0.8-1.4;1.11-2.8 2.1-3.9 3A-4.0 DecemCer projection, 1.4 2.4 3.3 3.5 0.9-1.4 1.9-3.0 2.9-3,5.3.3-3.5 0.9-2.' 1.9-3.4 2.1-3.9 3.0-.4.0 Note: Projections of change in real gross domestic product (GDP) and projections for both measures of inflation are percent changes from the fourth quarter cf the previous year to the fourth quarter of the year indicated. PCE inflation and core PCE inflation are the percentage rates of change in, respectively, the price index for personas consumption expenditures (PCE) and the price index for PCE excSuding food and energy. Projections for the unemployment rate are for the average civilian unemployment rate in the fourth quarter of the year Indicated. Each participant's projections are based on his or her assessment of appropriate monetary policy. Longer -run projections represent each participant's assessment of the rate to which each variable would be expected to converge under appropriate monetary policy and in the absence of further shocks to the economy. The projections for the federal funds rate are the value of the midpoint of the projected appropriate target range for the federal funds rate or the projected appropriate target level for the federal funds rate at the end of the specked ca;endar year or over the longer run. The December projections were made In conjunction with the meeting of the Federal Open Market Committee an December 15-16, 2015. 1. For each period, the median Is the middle projection when the projections are arranged from lowest to highest. When the number of projections is even, the median is the average of the two middle projections. Return to table 2. The central tendency excludes the three highest and three lowest projections for each variable in each year. Return to table 3. The -ange for a variable in a given year includes all participants' projections, from lowest to highest, for that vartab;e in that year. Return to table 4. Langer -run projections for core PCE inflation are not collected. Return to table Figure 1. Medians, central tendencies, and ranges of economic projections, 2016-18 andover the long,erun r Medians, central tendencies, and ranges of economic projections for years 2016 through 2018 and over the longer run. Actual values for years 2011 through 2015. Changs in real GDP Percent Q Print https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20l 6O3 l6.htm 5/19/2016 roto LEAGUE of HANDBOOK FOR MINNESOTA CITIES MINNESOTA Chapter 21 CITIES Municipal Budgeting Table of Contents I. Public versus private budgeting.....................................................................................................................3 II. Budgeting basics and funds...........................................................................................................................4 III. Municipal budget is a plan............................................................................................................................5 A. Council on Local Results and Innovation.....................................................................................................6 B. Budget cycle.................................................................................................................................................. 7 IV. Budget as a communication tool.................................................................................................................10 A. Explain city financial conditions in budget documents...............................................................................10 B. Tie budgeting to goals in budget documents............................................................................................... l I C. Foster citizen involvement in budget process.............................................................................................11 D. Link citizen input to budget decisions......................................................................................................... l I E. Use the budget to communicate the value of government........................................................................... l I V. Budget structures.........................................................................................................................................12 VI. Revenues.....................................................................................................................................................12 A. Tax revenue.................................................................................................................................................13 B. Franchise fees..............................................................................................................................................14 C. License and permit revenue.........................................................................................................................14 D. Intergovernmental revenue..........................................................................................................................15 E. Charges for services....................................................................................................................................18 F. Public safety revenue...................................................................................................................................18 G. Culture and recreation.................................................................................................................................18 H. Enterprise funds...........................................................................................................................................18 I. Penalty charges............................................................................................................................................18 J. Special assessment revenue.........................................................................................................................19 K. Miscellaneous revenues...............................................................................................................................19 L. Other revenue..............................................................................................................................................19 VII. Expenditures................................................................................................................................................19 A. General government....................................................................................................................................20 B. Public safety................................................................................................................................................20 C. Culture-recreation........................................................................................................................................21 This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.Imc.org 10/15/2015 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2015 All Rights Reserved D. Conservation of natural resources...............................................................................................................21 E. Debt service.................................................................................................................................................21 F. Miscellaneous expenditures.........................................................................................................................22 VIII. Capital improvements..................................................................................................................................22 IX. Other regulations impacting municipal budgets ..........................................................................................22 A. GASB..........................................................................................................................................................22 B. State auditor reports.....................................................................................................................................23 C. Taxation notification procedure..................................................................................................................23 X. Plan B cities.................................................................................................................................................25 XI. Charter cities................................................................................................................................................25 XII. Conclusion...................................................................................................................................................25 League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 2 rote LEAGUE of MINNESOTA CITIES HANDBOOK FOR MINNESOTA CITIES Chapter 21 Municipal Budgeting Learn the characteristics of city budgets as a workplan and communication tool. Understand the budget cycle and structures, sources of city revenue, typical expenditure categories, and planning for multiple year expenditures, like infrastructure, with a separate capital budget. Become aware of how GASB and Truth in Taxation impact budgeting. RELEVANT LINKS Minn. Stat. § 412.221. I. Public versus private budgeting Cities are under great pressure to streamline operations and meet strict financial standards at the same time. Sustainability is an overarching concern for cities. Simply adopting last year's budget is not acting in the city's best interest. Done thoroughly, city budgets reflect city plans, policies and goals regarding services and sound resource management. Consider city goals, what programs and services citizens want in the city and then look to sustaining or allocating funding for those goals, using the budget document as an important communication tool revealing a city's plan for the coming year A city is a municipal corporation but budgeting in the public sector is different than it is in the private sector. The table below illustrates some of the major differences in terms of scope, law, and process. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 10/15/2015 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2015 All Rights Reserved PRIVATE OR NON - CITIES GOVERNMENTAL ORGANIZATIONS (LAGOS) Provide services and programs for the Provide services to a discreet set of entire community. customers. Budgets focus on public safety and Private companies allocate money to meet well-being of the community as a shareholders or owners expectations for whole. profit. Must fund a wide variety of activities Focus spending on narrowly defined from safe roads and clean water to programs or services. economic development. Subject to a significant number of state Not subject to such extensive and and federal mandates or laws that numerous legally binding mandates that legally require cities to provide certain require both provision and levels of services but do not provide funding for service. them. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 10/15/2015 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2015 All Rights Reserved RELEVANT LINKS: Minn. Stat. § 6.745. Minn. Stat. § 471.6965. See Sections X -XII, Plan B cities, Standard plan cities, Charter cities. CITIES PRIVATE OR NON- GOVERNMENTAL ORGANIZATIONS (LAGOS) Must not borrow money from a bank Obtain funds by borrowing money to build but issue debt in the form of bonds to or improve their business or buildings. build public infrastructure such as roads and bridges. Use taxing authority to raise funds to Charge for services or programs at a cost provide services and programs often at that includes a profit. or below cost. Prepare budgets in public and include Prepare budgets in private with no public the public in the process and in the participation. final product. Minn. Stat. § 471.6965. Information on budget decisions, city Detailed budget decisions and information revenue and expenditures is public on private companies is not public and data, done in public. done in private. City councils must make budgeting Non-governmental organizations often decisions by consensus. vest decision-making authority in one person. Competing interests are a given when Fewer competing interests - making a cities prepare budgets. profit and/or being competitive is typically the focus. Must budget for services in good and Make budget decisions based on bad markets based on community competition with other businesses and on needs, goals and objectives. market conditions. Subject to stringent and Not subject to public accounting and comprehensive financial controls and financial controls or public scrutiny of public reporting to prevent funds and spending activities. mismanagement and misuse of public funds. II. Budgeting basics and funds Budgeting is basically planning and prioritizing goals for the coming year based on experiences in the past year or years. All cities are required to prepare and adopt an annual budget. By law in Minnesota, the fiscal year of a city and all of its funds must be the calendar year. Thus, for cities, a budget is one year of estimated money coming in, or revenue and expenditures or money going out. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 4 RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 5 Note: Cities organized under Plan B form of government, and cities with home rule charters, special laws, local ordinances or unique circumstances may have additional or special budgeting requirements and considerations. A city budget is a comprehensive financial plan for one year. It is a snapshot in time of city activities and services supported by discreet city funds for the coming year. In governmental accounting terms, a "fund" is a sum of money set aside for a specific purpose—not necessarily a separate bank account—but tracked on paper separately. The three basic city fund types are: Minn. Stat. § 471.696. • Governmental funds—used to finance most governmental services and Handbook, Chapter 26. based on tax revenues, special assessments, or issuing debt. The city's general fund, debt service funds (to pay off bonds), and capital project funds are examples of governmental funds. • Proprietary funds—financing for governmental activities operating like a private business, for example, water and sewer utilities, electrical utilities, or municipal liquor stores. Service charges usually provide most of these funds. • Fiduciary funds—trust and agency funds used to account for assets a city holds in a trustee capacity or as an agent, for example, pension funds. Fiduciary funds cannot be used to support the city's own programs. See Sections vi and V11, The Office of the State Auditor (OSA) provides the Uniform Chart of Revenues and Expenditures. Accounts to facilitate the preparation of uniform annual financial statements. Uniform Chart of Accounts, The outline of accounts may also serve as a useful checklist when preparing Office of the State Auditor. city budgets. Every city should consult this chart when preparing the annual budget and maintaining financial records. The OSA recommends the adoption of the uniform account numbering system for all cities, including cities under 2,500 in population, whenever practical. Government Finance officers Preparing city budgets involves policy decisions about the use of money, Association (GFOA): See p. is for all and it helps cities make important decisions, tying funding to specific goals Minnesota recipients of the set by the council. During the budgeting process, city council members and Distinguished Budget Award for Fiscal Year 2014. staff look back to what programs and services worked the previous year and they look forward to what city activities may be changed, dropped, or increased in the coming year. III. Municipal budget is a plan To make a useful municipal budget, examine all city services and programs, for example, firefighting services, police protection services, water and sewer services, holding elections, park and recreation programs, park maintenance, snowplowing, and any other city -funded activity. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 5 RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 6 Include personnel costs, office supplies, computers, software, building and maintenance supplies fuel costs and any other equipment. These are the current expenditures. Next look at money coming in, or revenue, from all sources. As explained in more detail below, property taxes are the largest source of revenue for cities. In order to balance the budget, total estimated revenues must be equal to or exceed total estimated expenditures. The budget sets out a council's yearly plan to maintain, change, add or drop services and activities. Planning a city budget includes a fund balance, or unrestricted money Fund Balances for Local Governments, Statement of available to cover unexpected costs. The state auditor recommends but does Position, Office of the State not require that cities keep a minimum of five months' operating costs on Auditor, Feb. 2014. "City Fund Balances 101" hand and accessible to cover such unanticipated costs. Some city councils League of Minnesota cities, believe that higher fund balances provide more protection against Sept. 2015. unforeseen emergencies. Section vill, Capital Cities often budget and plan separately for capital improvements because the Improvements. process covers more than one year. Capital improvements includes planning for replacing, repairing and maintaining infrastructure such as streets, sidewalks, water and sewer systems, transportation, buildings and parks. Planning for future infrastructure costs is essential. Without it, cities run the risk of costly emergency repairs to local infrastructure. A. Council on Local Results and Innovation Minn. stat. § 6.90. Set up by law in 2010, the Council on Local Results and Innovation Office of the State Auditor: 2013 Performance developed a standard set of 10 performance measures for cities to aid Measurement Report. residents, taxpayers, and state and local elected officials in determining the Minn. stat. § 6.91. efficacy of cities in providing services, and measure residents' opinions of those services. Cities that elected to participate in the standard measures system must report its results to its citizens annually through publication, direct mailing, and posting on the jurisdiction's website, or through a public hearing at which the budget and levy will be discussed and public input allowed. Participating cities must report their results to the state auditor. The state auditor must compile the results, make them available to all interested parties, publish them on the auditor's website, and report them to the legislative tax committees. A city that elects to participate in the standard measures program may benefit in these ways: Minn. stat. § 6.90. Minn. Stat. § 275.70 -.74. . Eligible for local government aid reimbursement of 14 cents per capita, but not to exceed $25,000 for any government entity. • Exempt from levy limits for taxes payable in 2015, if levy limits are in effect. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 6 RELEVANT LINKS: Minn. Stat. § 6.90. Budget Process, City of Hopkins. Section VI, Revenues. Section IX.C, Truth -in - Taxation. Minn. Stat. § 477A.014. Minn. Stat. § 275.74, subd. 1. Minn. Stat. § 275.065, subd. 1(a). Minn. Stat. § 275.065, subd. 6. A city that elected to participate in the standard measures program in 2012 was eligible for local government aid reimbursement of 14 cents per capita, but not to exceed $25,000 for any government entity. A city that elected to participate in the standard measures program in 2013— or any year thereafter—is eligible for local government aid reimbursement of 14 cents per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program may be exempt from levy limits, if such limits are in effect. For example, the levy limit exemption provided by participation in local performance measurement and reporting under Minn. Stat. § 6.91 did not apply under the one-year 2013 (payable 2014) levy limit. B. Budget cycle The process of annual budget preparation occurs within the framework of the state property tax system. Property taxes are generally the primary revenue source for Minnesota cities. Each fall, cities submit their property tax levies for the following year to the county auditor. Counties are responsible for property tax administration; the state Department of Revenue provides assistance and oversight. Minnesota cities also participate in a revenue-sharing program known as local government aid (LGA). LGA supplements property tax revenue. Cities must prepare and adopt proposed budgets and proposed property tax levies each year. Cities over 500 in population that propose a property tax increase are required to provide notice of the proposed budget adoption and to allow public input on the proposed budget and property tax levy. The "truth -in -taxation" (TNT) process is described later in this chapter. Cities generally prepare budgets in the summer with the following due dates, although particular dates may vary by year if a due date falls on a holiday or a weekend: On or before Aug. 1: The Department of Revenue notifies cities of state aid amounts. On or before Sept. 1: The Department of Revenue notifies cities of the applicable levy limit, if any. On or before Sept. 30: Note the law change in 2014, extending the deadline to Sept. 30 instead of the previous date, Sept. 15. However, special taxing districts, like housing and redevelopment authorities (HRAs), must still certify their preliminary levy by Sept. 15. Cities must adopt their proposed budget and certify their proposed levy to the county auditor. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 7 RELEVANT LINKS: Internal Controls for Municipal Liquor Stores League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 8 Note: Once cities certify a proposed levy in September they may Minn. stat. § 275.065, subd. decrease the amount when they certify a final levy in December—but 1. Minn. Stat. § 275.066. may not increase it. • Between Nov. 25and Dec. 20: The TNT public comment hearings, if required, must occur. Remember to check current calendars for each year's due dates. LMC information memo, • On or before five working days after December 20 in each year: Budget Guidefor cities Cities must adopt a final tax levy and certify that final property tax levy to the county auditor. Minn. stat. § 477A.015. Cities generally receive property tax revenues and state aid at various times. Minn. Stat. § 273.1384, subd. 4. The county treasurer distributes property tax revenues to cities in two League of Minnesota cities: payments. The state Department of Revenue distributes LGA payments to Budgets Dates 101. cities in two equal installments, on or around July 20 and Dec. 26 each year City budgeting never stops. While city councils and staff are preparing new annual city budgets, they are also tracking and reviewing the current year's revenues and expenditures. As cities implement a new year's budget, they are also auditing and reporting on the past year's expenditures. Preparation, approval, implementation, and audit review comprise the ongoing budget cycle. 1. Budget preparation Cities begin budget preparations in May or June, examining current economic trends, as well as all revenue sources and expenditures and proposing increases or decreases accordingly. City staff collects budget information and presents it to the council at meetings, where interested citizens may participate. The goal of budget preparation is to balance all revenues and expenditures, prioritize capital improvements, and appropriately manage outstanding debt. 2. Budget approval Minn. Stat. § 275.07, subd. 1. By law in Minnesota, the fiscal year of a city and all of its funds is the Section VI, A 2. Setting the property tax levy within calendar year. By December of each year cities determine their financial limits. condition showing a freeze frame in time of all money flowing in and out of the city, outstanding city debt and financing for needed capital improvements. Cities adopt a new budget late in December to begin in January of the coming year. 3. Budget implementation Statements of position office City councils must monitor the current budget, directing how staff accounts of the State Auditor: Internal Controls. for expenditures and revenues. Internal Controls for Municipal Liquor Stores League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 8 RELEVANT LINKS: Petty cash (hnprest) Funds, One important step is for council to adopt a policy on internal controls, Statement of Position, Office of the state Auditor. meaning that the council sets the rules to prevent misuse of public money. Credit Card Use and Policies, For example, if at all possible, the same person should not be taking in Statement of Position, Office of the state Auditor. money and paying it out. This `segregation of duties' is part of a policy on internal control and budget implementation crucial to appropriate use of public funds. Policies on the use of petty cash (known as imprest funds in financial jargon) and a policy on credit card use also helps protect cities from loss or misuse of public funds. 4. Budget audits Minn. stat. § 471.697, subd. City councils must audit budgets, depending on the size, structure, and 1. Minn. stat. § 471.49, subd. annual revenues of the city. The state auditor publishes the audit threshold 10. for the year gone by in early February of each year. At a minimum, a city Minn. Stat. § 412.591, subd. 2. with a population of 2,500 or less and a combined clerk/treasurer must have Minn. stat. § 412.02, subd. 3. an annual audit done by a certified public accountant if its annual revenue is Handbook, Chapter 26. greater than $199,000—for the year ending Dec. 31, 2013. A city with a combined clerk/treasurer and annual revenue of less than $199,000(for the year ending on Dec. 31, 2013)must have an audit done by a certified public accountant once every five years, and the person doing the auditing will select the year to be audited. A city with a population over 2,500 must have an annual audit performed. Remember to check with the state auditor for current audit thresholds in February of each calendar year. 5. Budget amendments City budgets are not set in stone. Many cities must revise their original budgets over the course of the year for a variety of reasons. Amending the budget is not illegal nor is it necessarily undesirable. Typically, city councils simply note the reason for amending the city budget (the city receives a grant, a piece of equipment fails, etc.) and adopt the amendment in a resolution. Minn. Stat. § 412.731. However, in Minnesota's 16 Plan B cities, resolutions reducing amounts in Section X: Plan B cities. the budget or authorizing transfers from unencumbered balances must pass by a four-fifths vote of all the members of the council. For cities over 2,500 in population, the Governmental Accounting Standards City of Eden Prairie, 2013 Comprehensive Board (GASB) requires that cities include the original budget and budget Financial Report Recipient of amendments in budget reports, such as the comprehensive annual financial CAFR award from GFOA. report (CAFR). League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 21 1 Page 9 RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 10 IV. Budget as a communication tool 2014 City councilmembers, as policymakers, must understand budget documents. Corporate Report to the Community: City of And making a city budget understandable to citizens is not easy. Bloomington. The scope and complexity of city budgeting also makes citizen participation Popular Annual Financial difficult; citizens may focus on one area and advocate for budget cuts or Report: To the Community expenditures that are not fiscally prudent. Using the budget process and City of Arden Hills, 2014. product to communicate, showing what services resident tax dollars fund is one way to make budgeting meaningful for council members and residents. An award was created to recognize government entities that extract information from their CAFR to produce high quality annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance. A. Explain city financial conditions in budget documents Comprehensive Annual Citizens have a sense of the current economy, but many people may not Financial Report (CAFR) 2014, City of Richfield. understand how the state economy impacts city budgets. City councilmembers also need to look at the city budget in light of federal economic conditions. In the budget documents, explain which of these state and local challenges affects your city: • The current low interest on bonds allowing refinancing and paying off old bonds thus saving on interest payments. • The cuts in aid from the state (local government aid), if any. • Low interest rates on city investments. • Rapidly increasing unpaid water and sewer charges. • Foreclosures. • Unemployment. • Abandoned or vacant properties. City budget documents build on the past year and project into the coming year. Communicating an accurate picture of the city's financial condition helps citizens and council develop strategies to sustain the city. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 10 RELEVANT LINKS: City of Minnetonka: Ideas on the Budget. City of Hopkins, City Budget Process. City of Worthington, Budget Information. Minn. Stat. § 275.065, subd. le. Tax Value Illustration from Lenexa, Kansas. B. Tie budgeting to goals in budget documents Citizens support goals not just expenditures. For example, all cities share the critical responsibility to hold elections. One city sets a goal in the annual budget to "continue providing efficient and friendly non-partisan voter registration, absentee, and election day services" and tracks everything related to that goal in the annual budget document. Citizens are therefore able to understand and support the city's expenditures related to elections. C. Foster citizen involvement in budget process Many cities use citizen surveys to determine city priorities and guide budget decisions about the level of city services provided. Given the stress on city budgets and the expenses of a city-wide survey, a number of cities seek citizen input on the city budget simply by providing a way to submit ideas, questions or comments about the budget through the city website. Cities may also seek citizen input from targeted discussion groups, advisory boards and public meetings during the development of the budget. Even though allowing citizen participation is required in cities with population over 500 (by the truth in taxation law) it occurs late in the budget cycle. Cities may wish to publicize the budget process or calendar to encourage citizen participation earlier in the year. D. Link citizen input to budget decisions Once a city engages citizens in the budgeting process, include that participation and comments in the budget documents. For example, if many citizens comment on the need to revitalize certain commercial or residential areas of the city, include the comments and actions that the city council takes on that issue in the budget document, even if it is a preliminary plan to investigate revenue related to revitalization. Then, citizens see how their involvement impacts the city's budget process and plan. E. Use the budget to communicate the value of government Easy to understand information on what programs and services a city tax dollar supports helps citizen understand the value of government and city budgets. City budgets necessarily focus on the overall cost of a service, for example, police protection. But, looking at city budgets from the opposite end—how much tax revenue comes into the city from each home and all the services those dollars support—shows a more accurate picture of the value of city services to residents. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 11 RELEVANT LINKS: City Expenditures chart Over the years, statistics show that cities in Minnesota consistently spend 2013. more on public safety and public works than in any other category. Use the city budget to show citizens that their tax dollars support public safety and clean drinking water. V. Budget structures Most cities approach budgeting using a particular format. The most common budget techniques cities use include the following formats: Additional Information on Budget Structures. • Line item budgets: the simplest budgeting structure showing each expenditure on a separate line. • Program budgets: presents budgeting information around particular programs instead of simple line item expenditures. • Performance budgets: rather than just expenditures, includes service goals and objectives, and measures outcomes related to expenditures. • Zero -based budgets: starts with funding city services at a minimum level and working up from there to a level of funding that councils agree is appropriate for each city service. Many city budgets contain a mix of these formats. The format is simply a way to present information on expenditures so that city councils may decide which services the city will fund, and at what level, for the coming year. LMC City Pro Financial The League's City Pro Financial Planning Tool may be helpful when Planning Tool. preparing city budgets. The League and its Small Cities Financial Viability Fund Balance Policy. Task Force partnered with Springsted Incorporated's financial advisors to Financial Management develop this affordable, easy-to-use tool. City staff enters current budgets Policy. and financial data, and City Pro projects up to 10 years of future revenues, expenditures, costs of capital improvements, and fund balances. City Pro calculates the tax rate necessary to support projected needs, giving city staff and elected officials a sound basis for long-range planning and decision making regarding future service delivery capacity. The League's staff also worked with Ehlers and Associates to develop five sample financial documents two of them relating to city budgets. VI. Revenues City Revenues chart, 2013. City budgets start with a picture of revenue (money coming in). Minnesota Minn. stat. § 410.32. law greatly restricts the available types of local revenue sources. Unlike Minn. stat. § 412.301. some other states, local governments in Minnesota may not impose an Minn. Stat. § 297A.99, subd. I (d). income tax. In addition, without specific legislative authority, cities may not impose a local sales tax, and those that have been granted are usually for specially designated purposes. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 12 RELEVANT LINKS: Minn. stat. § 297A.99, subd. A political subdivision may not advertise or expend funds for the promotion 1 (d) (e). of a referendum to support imposing a local option sales tax, but a city may expend funds to: • Conduct the referendum. • Disseminate information included in the resolution indicating the city council's approval of the tax. • Provide notice of and conduct public forums at which proponents and opponents on the merits of the referendum are given equal time to express their opinions on the merits of the referendum. • Provide facts and data on the impact of the proposed sales tax on consumer purchases. • Provide facts and data related to the programs and projects to be funded with the sales tax. Understanding where city funds come from is the first step in developing a budget plan. Based on the state auditor's uniform chart of accounts, revenue for most cities includes money from the following 13 categories. A. Tax revenue Minn. stat. ch. 275. Tax revenue includes current property taxes; delinquent property taxes; Minn. Stat. § 282.08. Minn. stat. § 21613.025. apportionments from tax forfeit sales; franchise and public utility taxes; and Minn. stat. § 276.131. city sales, gambling, and local lodging taxes, if any. Cities in Minnesota Minn. Stat. § 349.213 Minn. stat. § 469.190. receive a variety of shared tax revenue, or general state aid, from the state. Amounts for each city are typically available from the Minnesota Department of Revenue on or before Aug. 1 of each year. 1. Property tax revenue LMC, Property Tax 101, The property tax is the primary revenue source for cities and it applies to all August, 2015. taxable property within city boundaries. The Minnesota property tax system Additional Information on is complicated, including classifications of property based on the use of the Sources of Revenue. property. Over time, the system has become more complex and difficult for taxpayers to understand. Unfortunately, local officials must frequently Accounting Manual for Small Cities and Towns in explain how the system works and take the blame for the complicated Minnesota. features of the system. Local officials, however, can only control local levy Uniform chart of Accounts, decisions and must focus on that for budgeting purposes. Office of the State Auditor. 2. Setting the property tax levy Each year, cities certify a property tax levy for the following year in dollars, not at a specific rate. The council should set a tax levy high enough to provide money for the following purposes during the upcoming budget year: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 13 RELEVANT LINKS: Minn. Stat. § 477A.011. Minn. Stat. ch. 275. • Payment of all estimated expenditures, including an allowance for a Minn. stat. § 275.70, subd. 5. reserve and the amount necessary to make all city contributions to the Handbook, Chapter 22. Public Employees' Retirement Association (PERA). • Current expenditure liabilities the city cannot pay in the present year for lack of current funds or that the city will pay through short-term borrowing. • Repayment of all tax anticipation certificates the city issued during present and past years. • An amount in anticipation of the reduction or loss of state aids, federal revenues, or other undependable sources of revenue. • For the payment of interest and repayment of principal on bond issues before the bonds are delivered. (Bonds issued previously are already funded by a portion of the city levy). 3. Gambling taxes and funds Minn. stat. § 349.213, subd. Cities may impose up to a 3 percent local gambling tax on licensed 3. gambling organizations in order to cover the cost of regulating lawful gambling. A city may not use these tax revenues for any other purpose. Minn. stat. § 349.213, subd. Cities may also require organizations conducting lawful gambling to 1(a). contribute 10 percent of their net profits derived from lawful gambling to a city -administered fund to be disbursed for lawful purposes. Note: state law defines lawful purpose. Such funds cannot be used for the benefit of a pension or retirement fund. See LMC information memo, For further discussion of lawful gambling expenditures and regulation, see Lawful Gambling. LMC information memo, Lawful Gambling. B. Franchise fees Minn. stat. § 216B.36. Cities are authorized to impose a franchise fee on utility services, such as 47 U.S.C.A. § 542. gas, electric, and cable television. Franchise fees for gas and electric utilities "Minnesota city and Town are subject to negotiation. Cable franchise fees are limited to no more than 5 Accounting and Financial Reporting standards uniform percent of the cable operator's gross revenues over a 12 -month period. The Chart of Accounts" office of revenues from franchise fees can be useful in offsetting a city's costs to the State Auditor, Feb. 2012. regulate these businesses and maintain and protect the public right-of-way. The state auditor classifies franchise fees as other taxes. C. License and permit revenue Additional Information on Another source of revenue for cities come from license and permit fees. Sources of Revenue. Handbook, Chapter 11. Cities should be conservative when estimating these amounts as they can vary considerably from year to year. Municipal licensing should not be viewed as a significant source of revenue. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 14 RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 15 In Minnesota, license fees must approximate the direct and indirect costs in issuing the license and policing the licensed activities. D. Intergovernmental revenue 1. Local government aid LMC, Local Government Aid For some cities, local government aid (LGA) from the state is a significant 101, July 2015. source of income. The goal of LGA is to equalize cities' ability to provide LMC, History of Local an average level of services at reasonable property tax rates. Government Aid to Cities. A complex formula determines how much LGA each city receives. The LMC: 10 LGA Key Points, July 2015. Minnesota Department of Revenue certifies how much LGA each city receives by Aug. 1 of each year. Cities receive two annual LGA payments - ayments101, LMC, Dates for City Budgets 10 1,July 2014. one in mid-July and the other at the end of December. Minn. stat. § 477A.014. The commissioner of the Department of Revenue notifies each city of its Department of Revenue: LGA distribution during the first week of August. Cities have 60 days to Local Government Aid appeal the calculation or factors used in the computation. Special (LGA) and Annexations, Boundary changes, or considerations apply for cities dealing with annexation or a change in the Changes in Form of form of city government. Government. 2. Market value homestead credit ended in 2011 The Legislature eliminated the market value homestead credit program effective for tax year 2012. The main problem with the program for cities had been that the state did not always reimburse the entire amount of the credit. Thus, cities did not receive the full amount they levied in a given year. The program was replaced by the homestead market value exclusion. 3. Homestead market value exclusion Minn. stat. § 273.1393. The homestead market value exclusion (HMVE) program replaced the Minnesota Department of MVHC program for taxes payable in 2012 and beyond. Therefore, in 2013 Revenue: Market value there will be no separate MVHC payments coming from the state. This Exclusions: A Primer for Local Governments. means that what the city levies is what the city receives directly from property owners. This law is effective for taxes payable in 2012 and thereafter. In place of the MVHC program, homeowners will receive an exclusion of a portion of the estimated market value of their house from property taxes. The exclusion is computed in a manner similar to the market value homestead credit. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 15 RELEVANT LINKS: Minn. Stat. § § 69.011-.031. Minn. Stat. § 424A.08. Minn. Stat. § 69.021, subd 4(c). Minn. Stat. § 471.699. Minn. Stat. § 69.021, subd. 5. Handbook, Chapter 26. For both forms, instructions and letters about both forms see Minnesota Revenue: Police State Aid (Use Form PA -1). Fire State Aid (Use Form FA - 1). 4. General state aid Cities in Minnesota receive a variety of shared revenues from the state. Amounts for each city are typically available from the Minnesota Department of Revenue on or before Aug. 1 of each year. Each of these programs has a separate policy goal, and, taken in combination, the programs and their impact on city finances can be confusing. The following sections describe these programs and their interaction with the city budget - setting process. a. Fire and police state aid—filing forms required The state determines which cities and independent nonprofit firefighting corporations qualify for fire state aid directly—or qualify to receive fire state aid paid to the voluntary statewide lump -sum volunteer firefighter retirement plan. The state also determines which cities are qualified to receive police state aid. The state must pay the police and fire aid by Oct. 1 so the money usually goes out just before that deadline. However, cities must file the appropriate forms by March 15 each year to receive this money. In addition, the state auditor can delay the Oct. 1 payment date if a city fails to submit legally required financial reports. The city clerk in the city served by the volunteer relief association must also countersign the fire relief association's financial report – or it may be countersigned by the city clerk in the largest city served by the fire relief association. According to the Minnesota Department of Revenue, if the forms are not received by March 15 the Department of Revenue will send a final reminder stating that the forms have not been received and that the fire or police department could forfeit part or all of its aid for the year if the forms are not received within 10 days. The amount of aid forfeited is equal to the amount of yearly aid multiplied by 5 percent for each week or fraction of a week that the form is late. Please note: the police state aid form must be signed and dated by the city clerk. If the form is not signed and dated, the form will be returned. Please also note that the fire state aid form must be signed and dated by both the municipal clerk (or secretary of an independent nonprofit firefighting corporation) and the fire chief. If the form does not contain both signatures, the form will be returned. Funding for these programs comes from the state general fund, based on taxes paid to the state by most insurers writing homeowners, fire, and commercial non -liability policies. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 16 RELEVANT LINKS: Minn. Stat. § 424A.02, subd. 3a. Minn. Stat. § 424A.02, subd. 10. Office of the State Auditor 525 Park Street - Suite 500, St. Paul, MN 55103 (651) 296-2551. Minn. Stat. § 162.09. Additional Information on Sources of Revenue. Minn. Stat. § 162.05. Minn. Stat. § 162.11. Minn. Stat. § 161.081, subd. 1. Additional Information on Sources of Revenue. Minn. Stat. § 162.081 The state apportions the money to qualifying cities for fire and police pensions. If all of the police officers in the city police department are members of the PERA Police and Fire Fund), the state peace officer aid must be applied toward the city's employer contribution to the Police and Fire Fund of PERA. If there is no firefighters' relief association and the city is not a member of the statewide volunteer firefighter retirement plan (SVFRP), then the fire aid must be used to maintain the fire department. City councils preparing budgets should know that there is a penalty if a defined benefit relief association pays out service pension benefits in excess of the statutory limits. This penalty includes the possible loss of fire state aid for the city. In addition, city councils should note that volunteer firefighter relief associations associated with the city fire department must file a copy of revised bylaws with the state auditor whenever they are amended or when the city council approves any amendment to the relief association's governing bylaws. Failure to file revised bylaws may also result in a loss of state aid until such documents have been filed. b. Highway user tax distribution fund The Minnesota Constitution requires that state gasoline taxes and motor vehicle registration fees provide funding for certain city, county, and state roads. These revenues go into the highway user tax distribution fund (HUTDF), and the Minnesota Department of Transportation (MnDOT) distributes them. Twenty-nine percent of the fund is dedicated for certain county roads and highways. Nine percent goes to cities with populations over 5,000. The remaining 62 percent is dedicated to the state trunk highway system. Pursuant to article 14, section five of the state constitution, t 5 percent of the net HUTDF is set aside for use on municipal and state roads. The 5 percent breaks down as follows: 30.5 percent is devoted to the newly established town road account. 16 percent is devoted to the town bridge account, allowing townships to use funds in the town bridge account to pay 100 percent of bridge rehabilitation and replacement costs. 53.5 percent is devoted to the newly created flexible highway fund, to be used primarily to fund trunk highway turnbacks (approximately $30 million per year). Turnbacks are former trunk highways that the state relinquishes control of to another level of government, for example from state control to county responsibility. The flexible highway fund includes turnbacks of county highways in the computation of municipal state aid miles. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 17 RELEVANT LINKS: Minn. stat. § 161.081. The law also requires the Department of Transportation to consult with the League of Minnesota Cities and the Association of Minnesota Counties (AMC) regarding the distribution of the HUTDF flexible fund's turnback money. City and county officials make recommendations on how to divide the fund between cities, counties, and the state regarding turnbacks. The commissioner of Transportation incorporates those recommendations in the department's biennial budget requests to the governor's office and the Legislature. E. Charges for services Additional Information on Cities may also receive revenues from election filing fees, sales of maps and Sources of Revenue. ordinances, assessment searches, court fees, police patrol and fire service fees, street and sidewalk repair, parking fees, refuse collection, water and sewer charges, inspection fees, and service charges such as those made by libraries, museums, and recreation facilities. F. Public safety revenue Contact the POST Board for The state reimburses cities for some police officer training costs. The further information at (651) 643-3060 or reimbursement amount available for training and per officer depends on the postboard.agency.docs@State number of eligible officers and is not determined until all of the applications .mn.us.Monday through Friday 8:00 A.M. to 4:30 have been received. The state determines the final amounts and transfers P.M. funds to cities in mid-September. Additional Information on Sources of Revenue. G. Culture and recreation Cities may generate income from cultural or recreational activities. This may include money from park rentals or revenue from city sponsored programs such as swimming classes, city festivals and city parades. H. Enterprise funds "Minnesota city and Town Enterprise funds come from city operations run in a manner similar to Accounting and Financial Reporting Standards Uniform private businesses. Examples include water and sewer operations, municipal Chart of Accounts" office of liquor stores and electric utilities. These services are typically funded by the State Auditor, Feb. 2012. charging those who use the service. According to the state auditor, cities are required to report sewer operations as enterprise funds. I. Penalty charges City revenue also comes from penalties and fines such as court fines, confiscated deposits, and collections on bonds or surety held for enforcement or security purposes. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 18 RELEVANT LINKS: 2001 League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 19 Though such revenue occurs, accounting for it in the city budget does not mean that cities plan on issuing a set number of penalties or fines. J. Special assessment revenue "Special Assessments" House Special assessments are a charge imposed on properties for a particular Information Brief, Sept. 2008. improvement that benefits the owners of those selected properties. The payments may continue coming in to the city for years and may be tied to bond payments for local infrastructure improvements such as improved water and sewer structures. K. Miscellaneous revenues According to the state auditor, miscellaneous revenues do not come from taxes, licenses and permits, intergovernmental revenues, charges for services, or fines and forfeits. Examples of miscellaneous revenues includes money from interest on investments, including such investments as savings accounts, certificates of deposit, money market funds and treasury bonds and bills, net increases in the fair market value of investments, rents and royalties such as revenues from rental of city properties (excluding city hall and community hall rent, parking lot fees, and auditorium use fees which are classified elsewhere) and contributions and donations from private agencies or persons. L. Other revenue An example of "other revenue" in this fund is cash received from insurance companies or individuals to compensate the city for the loss of general fixed assets due to theft, accident or natural disaster. Also included in this "other revenue" fund are interfund transfers (legally authorized transfers between revenue funds to expenditure funds). Examples include transfers from the general fund to a capital projects fund for authorized construction and transfers from an enterprise fund to the general fund to finance general fund expenditures. This fund also tracks money from the sale of general obligation bonds issued by the city. VII. Expenditures City Expenditures 2013. Cities must estimate their expected costs for the upcoming fiscal year and Excerpt from the Accounting budget accordingly. Common expenses across all categories of expenditures Manual for small cities and include salaries and other employment costs, equipment, supplies, materials, Towns in Minnesota, Office of the State Auditor, June maintenance, repairs, training, and fuel costs. 2001 League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 19 RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 20 Many cities will have some activity in most of these seven categories and the first two categories (general government and public safety) make up the majority of city expenditures. A. General government Minnesota City and Town Accounting and Financial Expenditures under this category include general costs for the administration Reporting standards uniform and finance of city government. Costs include those associated with council Chart of Accounts, Office of the State Auditor; and activities, such as publishing ordinances, and meetings. This category includes clerk costs for holding general and special elections. Legal costs fit 2013 Minnesota city into this category as do salaries, wages, and related employee benefits such Finances Report: Glossary. Additional Information on as employer contributions to retirement systems, insurance, sick leave and City Expenditures. similar benefits. Minn. stat. § 415.11. City councils may temporarily reduce their own salaries for one year. The law allows a city council to enact an ordinance to take effect immediately and provides an automatic readjustment back up to the previous salary unless a city's ordinance specifies a different time. B. Public safety Minn. stat. § 626.8458. The basic costs of public safety, at service levels determined by the council, include police protection, fire protection, ambulance service, emergency preparedness, and some protective inspections. Cities should be sure to budget for public safety training costs. Training costs include statutorily required training, such as police -pursuit training and training requirements for part-time police officer licensure. Minn. stat. § 424A.091. The city must provide for at least the minimum obligation to the fire relief "Municipal Contributions to Volunteer Fire Relief association in the annual municipal budget. The main sources of revenue for Associations," Office of the relief associations are municipal contributions, fire state aid, and investment State Auditor, Feb. 2009. earnings. Municipal contributions can be made voluntarily by a local community or may be required, based on the relief association's financial situation. Specifically, state law requires that a city pay a minimum annual contribution to the special fund of its affiliated fire relief association, unless the special fund is fully funded or fire state aid is sufficient to cover the municipal obligation. Decreased earnings on investments generally mean higher required municipal contributions, which can create challenges for a municipality's budget. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 20 RELEVANT LINKS: Minn. Stat. § 471.70. Office of the State Auditor: Report of Outstanding Indebtedness (Excel spreadsheet format or Adobe Acrobat form). Minn. Stat. § 475.755. Minn. Stat. § 475.754. Minn. Stat. § 412.301. Minn. Stat. § 410.32. Minn. Stat. § 475.755. Minn. Stat. § 475.61. Handbook Chapter 24. Minn. Stat. §475.58, subd. 1(11). Minn. Stat. § 275.70, subd. 5 (2)• Minn. Stat. § 475.61. Minn. Stat. § 412.301. Minn. Stat. § 410.32. Handbook Chapter 24. C. Culture -recreation Document all expenditures for city organized cultural and recreational activities. Examples include city expenditures for libraries, lifeguards, community centers, senior citizen centers, park supervision, park lighting and trails. D. Conservation of natural resources This category covers all expenditures for the conservation and development of natural resources, for example shade tree programs and the staff time taken to provide such programs. E. Debt service Cities have no authority to borrow money from banks or financial institutions. Instead, cities issue debt, or bonds, to finance public infrastructure improvements. Each year, councils and staff must keep track of the amount of debt issued, and payments of bond principal, interest and all associated costs. Cities must also document costs of issuing bonds and payments to fiscal agents working with a city on bonds in this category. Cities may budget for the use of certificates of indebtedness in a variety of circumstances. If the income of a city is reasonably expected to be reduced below the amount anticipated in its budget when the final property tax levy was certified, and those receipts are insufficient to meet the expenses incurred or to be incurred during the fiscal year, a city can issue certificates of indebtedness to mature within two years or less from the end of that fiscal year. The certificates must be repaid by a levy that, according to the Department of Revenue, is not subject to or included in a city's levy limit (if any levy limits are in place). The maximum amount the certificates may be issued for in a fiscal year is the expected reduction and the costs of issuance. Cities may issue short-term certificates of indebtedness to make up for an expected reduction in revenue from the amount the city was scheduled to receive when it certified and budgeted for its levy. Cities may issue certificates of indebtedness for capital equipment. These certificates are general obligations requiring the 105 percent over -levy and are subject to the debt limit, but none of the other provisions of bonding law applies. A reverse referendum procedure is contained in the statute if the amount of the certificates exceeds 0.025 percent (one-quarter of 1 percent) of the estimated market value of taxable property in the city. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 21 RELEVANT LINKS: F. Miscellaneous expenditures League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 22 Miscellaneous expenditures are those that do not fit in the other categories. Examples of miscellaneous expenditures may include costs to maintain a cemetery, costs to settle legal claims against the city and costs related to enterprises like water and sewer that do not fit anywhere else. VIII.Capital improvements Minn. stat. § 412.221. "Financing Budgeting for city infrastructure (roads, bridges, buildings etc.) covers more Infrastructure Projects," Minnesota Cities than one year so many cities separate these costs from yearly budgeting. (Aug. 2009, p. 6. Planning for future infrastructure costs is essential. A capital budgeting plan, City of Faribault, Capital Improvement Plan sometimes referred to as a capital improvement plan or CIP, typically lists 2015-2019. five or six years of major capital improvements, the order of priority, and a way to pay for them. A plan allows a city to save money for these projects. Priorities in the capital budget program remain tentative, and the council reviews them annually. Although capital improvement budgeting may appear cumbersome and unwieldy to small cities, this is actually not the case. A capital improvement plan provides protection to small cities, avoiding unforeseen infrastructure failures and expensive emergency repairs. IX. Other regulations impacting municipal budgets A number of state and federal regulations require certain types of reports and technical accounting strategies related to city budgets and city budgeting practices. A. GASB Governmental Accounting The Governmental Accounting Standards Board (GASB) issues statements Standards Board. Summaries of GASB (so far 47 of them) that establish standards for accounting and financial Statements. reporting—or generally accepted accounting principles (GAAP)—for state GASB 34 and Other Governmental Accounting: and local governments throughout the United States. In Minnesota, pursuant Effective Dates, Office of the to state law, the state auditor enforces the accounting standards for cities. State Auditor. Specifically, the state auditor requires and enforces compliance with GAAP for cities with populations of 2,500 and higher. Minn. stat. § 477A.017, subd. However, state law does not require that cities with populations under 2500 2. "Financial Reporting for report GAAP financial statements. (These cities may prepare GAAP Small Cities," Office of the statements as a good business practice or because of some contractual State Auditor. requirement, but are not required to do so by state statute). The state auditor provides a discussion on compliance with GASB 34 in small cities in the document, "Financial Reporting for Small Cities." League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 22 RELEVANT LINKS: See OSA; GASB; and GFOA. Handbook, Chapter 26. Minn. Stat. § 275.065, subd. 3. Handbook, Chapter 22. Minn. Stat. § 275.065, subd. t. Minn. Stat. § 275.065, subd. 3. Minn. Stat. § 275.066. This guidance should be used with the help of financial service providers to be best prepared to meet financial reporting requirements. GASB 34 is lengthy and is not discussed in detail in this chapter. For further information on GASB 34, contact GASB, the Minnesota Office of the State Auditor, or the Government Finance Officers Association (GFOA). B. State auditor reports State law requires that cities file budget information with the state auditor's office and also requires that cities publish budget information each year. A number of other financial reports and forms must be filed with the state auditor as explained in detail in Chapter 26 of the League's Handbook for Minnesota Cities. C. Taxation notification procedure The law no longer uses the phrase "truth in taxation." However, many people still use it to refer to a process which requires cities to allow time for public input on city budgets. According to the Department of Revenue, cities with populations of 500 or less and all special taxing districts (except the Metropolitan Council, the Metropolitan Airports Commission, and the Metropolitan Mosquito Control Commission) are exempt from the requirement to hold a meeting with public input prior to adoption of the final levy. Note: Cities with populations of 500 or less must still certify proposed property tax levies to the county auditor on or before Sept. 30, 2014. Previously, the date cities must certify property tax levies to the county auditor was Sept. 15, but 2014 amendments to law extended the deadline to Sept. 30. However, special taxing districts like housing and redevelopment authorities (HRAs) must still certify their preliminary levy by Sept. 15. And small cities must certify the final property tax levy to the county auditor by or before Dec. 28, 2015. If a city misses this deadline, that city's final levy for 2016 will stay the same as it was in 2015. Cities over 500 in population, even with the smallest levy increase, must follow the process described below. (Previously, cities with a levy increase lower than the inflation index, or IPD, were exempt from this process, but that is no longer the case. The requirement for a city phone number and address on parcel specific notices sent out by the county auditor does not require listing a personal telephone number or personal address. If the city informs the auditor that it has no public office, then no phone number or address is included in the notices. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 23 RELEVANT LINKS: MN Dep't of Revenue: Truth in Taxation for taxes payable in 2016. Minn. Stat. § 275.065, subds. la and lc. Minnesota Department of Revenue: Certificate of Compliance, (form TNT), available Nov. 25 at Truth in Taxation. Taxation Notification Summary Chart for Taxes Payable 2016 Date Actions On or Special taxing districts (EDAs, HRAs, port authorities, before etc.) must adopt any proposed property tax levy and certify Sept. the proposed levy to the county auditor 15. On or At one meeting, the city council adopts the proposed property before tax levy and announces the time and place of a future city Sept. council meeting at which the budget and levy will be discussed 30 and public input allowed, prior to final budget and levy determination. This public input meeting must occur after Nov. 24 and must start at or after 6 p.m. The time and place of the public input meeting must be included in the minutes but newspaper publication of the minutes is not required. On or Cities must provide the county auditor with the following before information: Sept. 0 The time and place of the meeting at which the budget 30 and levy will be discussed and public input allowed. (Again, meeting must occur after Nov. 24, in 2015, and must not start before 6 p.m.) • A phone number that city tax payers may call if they have questions related to the auditor's property tax notice; this does not require listing a private phone number. • An address where comments will be received by mail; this does not require listing a private address. Nov. 11 County auditor prepares and sends parcel -specific notices. to Nov. 24 Nov. 25 City councils hold meeting to discuss the budget and property to Dec. tax levy and, before a final determination, allow public input. 28, 2015 Nov. 25 Cities must also file the certificate of compliance (form TNT - to Dec. 2015) with the Department of Revenue by Dec. 29, 2014. 28, 2015 *Cities that are in overlapping counties or are consolidating services have slightly different timelines to certify proposed and final tax levies. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 24 RELEVANT LINKS: Minn. Stat. §§ 412.701 — 412.731. Minn. Stat. § 412.651, subd. 7. Handbook, Chapter 1 City of Hopkins City Budget. X. Plan B cities Cities with the Plan B form of government must follow unique budgeting requirements in state law. In these cities, the city manager is responsible for the city budget and sets out the required budgeting structure. State law addresses citizen participation in budgeting, requires that the manager read the budget aloud and respond to council questions. As noted previously, once a Plan B city adopts a final budget, budget amendments require approval by a four-fifths vote of all members of the council. Consult the city attorney when voting on budget amendments in a Plan B city to ensure compliance with the law. XI. Charter cities Councils in charter cities must review any special requirements related to city budgets and work with staff and the city attorney to ensure that the requirements in charter and law are met. A number of city charters make the city manager responsible for city budgeting but the council must still play a role in budget planning and approval. XII. Conclusion Accurate and complete budgeting is crucial to a city. It provides sound legal, financial and ethical basis for city operations. Done correctly, budgets show the revenues and expenditures necessary to provide the services and programs desired by the community. It reflects the goals, objectives, and priorities the current council identifies, based on input from previous council decisions, the residents and taxpayers. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 25 MEMORANDUM TO: CITY COUNCIL FROM: ADAM T. EDWARDS, PE SUBJECT: STREET PLANNING AND FUNDING DISCUSSION DATE: MAY 23, 2016 References: City of Orono Pavement Management Plan, adopted October 27, 2014. City of Orono 2016 Capital Investment Plan (CIP) City of Orono 2016 Budget List of Exhibits: A. Memo from April 25`h, 2016 Work Session 1. Purpose. The purpose of the item is to continue road funding discussion from the April 25t, 2016 Work Session. The City's street rebuilding and maintenance requirements exceed current resourcing. 2. Request: Direction on how to provide reliable funding for the City's streets as part of the 2016 and beyond budget processes. ITEM NO. 4 MEMORANDUM TO: CITY COUNCIL FROM: ADAM T. EDWARDS, PE SUBJECT: STREET PLANNING AND FUNDING DISCUSSION DATE: APRIL 25, 2016 References: City of Orono Pavement Management Plan, adopted October 27, 2014. City of Orono 2016 Capital Investment Plan (CIP) City of Orono 2016 Budget List of Exhibits: A. Historical Street Spending B. Road Condition Summary 1. Issue. The City's street rebuilding and maintenance requirements exceed current resourcing. 2. Background. For some time the City of Orono has struggled as to how to come up with annual funds to maintain its road/street infrastructure. The 2016 Budget does include $88,800 for pavement maintenance which is sufficient for potholing, signs and winter maintenance. However The Pavement Management Fund (PMF) has $183,000 dedicated funding from the levy for preventative maintenance and reconstruction which is significantly below the amount required to properly maintain the city's streets. In the past, the City has funded street reconstruction projects through the sale of bonds and has applied leftover general fund amounts towards street maintenance projects (Exhibit 2). This has resulted in the disproportionally large number of streets in disrepair requiring significant and the inability for the Staff to plan for and execute a maintenance plan to protect and extend the life of these valuable assets. a. Pavement Planning. In October 2014 the City adopted a Pavement Management Plan (PMP) which does provide prioritization of road maintenance as well as a description of funding sources. The PMP is used to inform the City's Capital Improvement Plan (CIP) which does provide specific roads to receive maintenance or reconstruction out to 5 years and identifies a funding requirement in general categories out to 20 years. Ideally, the CIP would then inform the annual budget cycle. b. Staffing and Action to Date. Fall of The City Council directed Staff to develop options for funding annual street 2013 reconstruction and maintenance. Staff conducted a study to include querying surrounding communities about how they provide funding for annual street maintenance and reconstruction. March Staff presented funding options to the City Council. Council requested staff to 2014 analyze funding options against several scenarios. May Scenarios (Assessments, Franchise fees, Bonding, Levy Increases) were presented. 2014 The Council directed Staff to bring back more information on franchise fees and to Tax present an option for road maintenance in the 2015 General Fund Budget. August Council directed staff to add $30K to the roads maintenance budget for 2015 2014 Increase Impact Impact on October Council adopted the Pavement Management Plan (PMP) 2014 ($) April Council reviewed the funding options for road maintenance/reconstruction with the 2015 consensus being against Assessments or Franchise Fees. May Council of directed Staff to provide a by year maintenance and reconstruction plan 2015 for the next five years. June Council reviewed a sample five year plan and the impacts to the Levy to fund the 2015 plan. Council provided guidance to create a funding source for Pavement Road (90), Fairview Cottage Lane (90), Grandview Management Fund with a dedicated Levy of $183,000. December Council deferred decision on road maintenance projects for 2016. Setting April of 2015 2016 as the date to review road planning and funding. 2. Street Funding. Distributing the pavement maintenance and reconstruction requirement per the City's Pavement Management Plan over a 10 year period, results in a funding requirement of $550,000/ year for Maintenance and $500,000/year for Reconstruction for a total of $1,050,000/year. The $183,000 dedicated to the Pavement management fund for 2016 represents 17% of the requirement leaving a funding deficit of $867,000/year. The first table below shows the impact of these costs on the Levy. a. Tax Levy Im acts of F Ily Funding Street Maintenance & Reconstruction Requirements Type of Annual Levy Tax Rate Tax Tax Tax Tax Street Work Cost Increase Increase Impact Impact on Impact Impact maintenance ($) (%) (Percentage on $546K on $1 M on $2M Cherry Ave(85), Chery PI (91), Concordia (79), Deferred Points) $250K Home Home Home Road (90), Fairview Cottage Lane (90), Grandview Home (Median) Maintenance $367,000 7.69% 1.29 $30 $64 $146 $307 Reconstruct $500,000 10.48% 1.76 $41 $87 $198 $419 Total $867,000 18.17% 3.06 $71 $151 $344 $726 3. Impacts. Fully funding the both preventive maintenance and reconstruction as in table above allows the city to realize it Pavement Management Plan. 4. 2016 Road Maintenance Planning. The table below represents the street maintenance proposed during the 2016 budget process and in the 2016 Public Works Plan. a. Streets Proposed for Preventative Maintenance in 2016 Public Works Plan. Maintenance Budget Description (PCI) Status Routine $ 47,000 Throughout System -(Patching, tree trimming, In budget annual striping, crack sealing) maintenance $ 178,556 Cherry Ave(85), Chery PI (91), Concordia (79), Deferred Corral Rd(86), Elmwood Ave (88), Fagerness Point Road (90), Fairview Cottage Lane (90), Grandview Ave (86), Loma Linda (84), North Arm (90), Park Dr (83), West Lake (79), Webb St (96), Orchard Beach Place(82), Highwood Ln (90), Linden Ln (87), Maple Seal Coating Place (94), Minnie Ave(94), Dahl Rd (77). 2 Mill and Overlay $ 277,361 Casco Circle, Tamarack Dr., Hunter Dr. Deferred TOTAL $ 502,917 $ 32,558 b. Other Maintenance Projects For Consideration, preventive maintenance dollars could be allocated towards. that require Mill and Overlay. 5. Reconstruction and Construction for 2016. There are numerous other roads that Exhibit B contains a listing of all of the roads a. City Streets Proposed for Reconstruction in 2016 Public Works Plan. Project Estimated Cost Status Watertown Road Phase 2 $ 32,558 City section of larger MSA project. Bids complete. Pending Award Watertown Road w/Long Lake $ 123,759 Bids complete. Pending Award Fox Street Feasibility Study $ 24,000 Approved. Scheduled for Summer 2016. West Lafayette $ 143,117 Deferred TOTAL $ 323,434 Varies b. MSA Streets Proposed for Reconstruction in 2016 Public Works Plan. Project Estimated Cost Status Watertown Road Phase 2 $ 699,485 Bids complete. Pending Award C. Other Projects for Consideration. In addition to the projects proposed in the 2016 Public works plan the following projects should be considered. Project Estimated Cost Description Turn Lane on northbound Old $ 47,880 The Orono School District is interested in improving Crystal Bay Road at the Middle traffic flow into the through their campus. The district School. has contracted for a traffic study. If the study supports it one action that could be completed this year would be the construction of a turn lane. Other Roads requiring Varies Exhibit B contains a listing of all of the roads deemed reconstruction. in the PMP as needed reconstruction. Request: 1. Direction on how to provide reliable funding for the City's streets as part of the 2016 and beyond budget processes. 2. Direction on which projects to complete with funds available in 2016. Pavement Management Investment 106215 �Ye�r=* 2007 (5.2 mi) 2008 (5.7 mi) 2012 (2.3 mi) -. Casco Circle 2006 $ 126,416 $ - $ - $ - $ 356,000 2007 $ 91,482 $ - $ - $ - $ - 2008 $ 99,028 $ 398,350 $ - $ - $ - 2009 $ - $ 108,109 $ 1,314,530 $ - $ - 2010 $ - $ - $ 190,658 $ - 2011 $ - $ - $ - $ - $ - 2012 $ 54,000 $ 375,233 $ - $ 424,263 $ - 2013 $ - $ 21,368 $ 814,225 $ - $ 1,171,481 2014 $ - $ - $ 122,000 $ - $ - 2015 $ 46,1991 J$ 230,670 $ - $ 406,237 2006 (so.9 mi) 2007 (5.2 mi) 2008 (5.7 mi) 2012 (2.3 mi) 2015 (1.8 mi) Casco Circle Arbor Street Barrett Avenue Chevy Chase Dr Cove Road Country Club Rd Baldur Park Road Bayview Place Ferndale Green Ethel Avenue Crestview Bohns Point Lane Chippewa Lane Old Long Lake Frederick Street Avenue Bohns Point Road Cygnat PI. Spring Hill Road Ivy Place Crystal Place Briar Street Dickenson Street Casco Point Road Dahl Road Carman Road E. Lake Street Dunwoody Ave Dakota Avenue Crystal Avenue Fairview Cottage Dickey Lake Drive Kelly Avenue Fox Ridge Road Eileen Street Kenwood Way Glendale Drive Elm Street Lakeview Avenue Hanlon Avenue Heritage Drive Lydiard Avenue Keene Avenue Heritage Lane Lydiard Circle Lyman Avenue Highwood Lane Mapleridge Lane Maple Lane Highwood Road Minnetonka Ave Myrtlewood Rd Lakeview Terrace Minnie Avenue North Arm Lane Linden Lane Old Beach Road Oak Street Livingston Ave Orchard Beach PI Orchard Park Rd Long Lake Blvd Partenwood Lane Orono Lane Minnetonka Partenwood Rd Park Avenue Highlands Lane Pheasant Road Park Lane Navarre Avenue Prospect Avenue Russell Avenue Navarre Lane Rest Point Circle Smith Avenue Olive Avenue Rest Point Lane Wear Circle Tonka Avenue Spates Avenue Wear Lane North Fox Street Tonkaview Lane Woodhill Avenue Lyric Avenue Vine Place Ferndale Road W North Arm Drive Windjammer Ln Kelley Parkway Willow Drive Crystal Bay Road Turnham Road Wildhurst Trail Leaf Street McCulley Reconstruct (0.8 mi) $2,500,000 $2,000,000 $1,500,000 $1,000,000 Cherry, Concordia, Corral, Elm, Elmwood, Fagerness Point, Fairview, Forest Lake Dr, Grandview, Hackberry, Loma Linda, Maple, Maple Ridge, Park Overlays 5.0 mi Casco Point Rd, Dunwoody Ave, Fredrick St, Ethel Ave, Casco Ave Reconstruct (1.0 mi) Casco Point Rd, Casco Cove, Ivy Place Overlay (0.8 mi) Willow Dr S Mill and Overlay (0.5 mi) Woodhill, Highwood, Bohns Point, Crystal Bay, Beederwood, Cygnat, Wear Overlays (2.3 mi) OCB Overlay (0.6 mi) Willowbrook Overlay (0.3 mi) Orono Orchard Reconstruct (1.2 mi) Willow Dr N Reconstruct (0.6 mi) Rest Point Reconstruct (0.5 mi) Stubbs Bay and Baldur Park Reconstructs (0.2mi) Watertown Road Ph I Reconstruct (1.1 mi) Pavement Investment $500,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Notes: Overlay includes both overlay and mill & overlay projects Reconstruct include traditional reconstructions and reclamation projects Funded by Bond Streets for Reconstruction Consideration Listed from lowest Pavement Condition Index to Highest Clty Street Name C/L Length (ft) Pavement Rating (0-100) Total Street Cost Forest Arms Lane Residential 1,700 44 $271,373.13 East Long Lake Road Collector 3,700 45 $771,503.71 Fox Street - OCB Rd -Willow Collector 3,000 46 $674,558.62 Garden Court Residential 575 47 $105,202.22 Windjammer Lane Residential 450 51 $71,834.06 Tonka Avenue Residential 900 53 $117,422.86 West Lafayette Road Residential 1,050 54 $143,117.23 Wildhurst Trail Collector 2,240 55 $430,474.60 E. Lake Street Residential 450 60 $61,335.96 Fox Street - Brown -Orono Orchard Collector 4,000 60 $834,058.06 Lyric Avenue - Livingston to Blaine Collector 615 60 $44,794.39 MSA I Fox Street - Willow -Brown Collector 2,400 50 $645,195.01 Data from 2014 Pavement Management Plan Streets for Mill and Overlav Consideration Listed from lowest Pavement Condition Index to Highest Data from 2014 Pavement Management Plan Street Name Type C/L Length (ft) Pavement Rating (0- 100) Total Street Cost Northern Avenue Residential 1,250 61 $63,564.95 City Minnetonka Avenue Residential 850 62 $33,156.09 Minnetonka Highlands Lane Residential 1,100 62 $64,361.83 Lafayette Ridge Court Residential 250 63 $14,627.69 Lyman Avenue Residential 1,000 63 $46,321.01 Tonkaview Lane Residential 1,850 63 $90,204.08 Olive Avenue Residential 650 64 $30,108.66 Vine Place Residential 600 64 $26,329.84 Townline Road Shared with Independence) Collector 2,400 65 $140,425.81 Tamarack Drive Collector 1,450 66 $82,787.20 Wildhurst Trail Collector 615 66 $31,921.08 Chevy Chase Drive Residential 3,000 67 $175,532.26 Kenwood Way Residential 550 67 $22,794.81 Kelley Parkway - OCB Rd to StoneBay Collector 700 67 $72,665.88 Casco Circle Residential 2,600 69 $120,434.63 Hunter Drive Collector 1,200 69 $74,139.39 Dickenson Street Residential 1,300 70 $57,047.98 Glendale Drive Residential 600 70 $33,643.68 Navarre Lane Residential 1,300 70 $72,894.65 Orchard Park Road Residential 2,650 70 $142,132.37 Rest Point Lane Residential 650 70 $28,523.99 North Arm Drive Collector 5,500 71 $299,746.75 Bayview Place Residential 1,300 72 $63,386.65 Forest Lake Landing Residential 400 72 $19,503.58 Park Lane Residential 800 72 $29,255.38 Togo Road Residential 1,500 72 $73,138.44 Briar Street Residential 1,050 73 $43,517.37 Livingston Avenue - CR15 to Blaine Residential 1,700 73 $116,046.33 Willow Drive - Fox St- Brown Road Collector 4,500 73 $242,987.40 Eileen Street Residential 350 74 $20,478.76 Forest Lake Drive Residential 1,000 74 $58,510.75 Garden Court Residential 400 74 $27,305.02 Navarre Avenue Residential 900 74 $46,077.22 Livingston Avenue - Blaine to Shadywood Residential 1,360 75 $69,627.80 Smith Avenue Residential 1,500 75 $65,824.60 MSA Ferndale Road North Shared with Plymouth) Collector 5,500 69 $417,405.48 Leaf Street Collector 2,700 69 $128,093.81 Data from 2014 Pavement Management Plan MEMORANDUM TO: ORONO CITY COUNCIL FROM: JEREMY BARNHART, COMMUNITY DEVELOPMENT DIRECTOR SUBJECT: PLANNING UPDATE DATE: MAY 23, 206 A brief update on a number of planning related items: Council packet size. There has been some discussion on the necessary contents of the Council packet for planning related items. Generally, a packet will include a staff report, any changes of plans/ ordinances since the Planning Commission meeting, the Planning Commission record, and the Planning Commission minutes. This is done to establish the formal record of an application. To address a concern with file size and loading time, exhibits will be saved as individual documents, so the user need only to open the specific exhibit desired, rather than the full 60 page record. The Planning Commission packet could also be distributed electronically to the Council when the Planning Commission receives it, and the Planning Commission packet could be incorporated by reference in the Councils staff report. Additionally, there has been some discussion about including floor plans in the official record. Included, the floor plans are public information and reviewable by anybody. In order to preserve privacy, we could not require floor plans, allowing the applicant the choice to include them when they feel it would help their argument. Staff would welcome any feedback on any changes desired by the Council. Temporary Family Health Care Dwellings "Drop Houses" Legislation The State recently adopted a law allowing "Drop Houses". Drop houses, sometimes described as elaborate fish houses, are temporary dwelling structures, meeting several specific criteria, including a size limitation of no more than 300 square feet, intended for those requiring care, to be placed on the property of a care giver, typically family members. These structures may be placed on the property for up to one year. The state law allows these structures, a city cannot prohibit them if a city allows accessory structures and recreational vehicle parking. A city must either approve or deny these structures within 15 days. No public hearing is required. Staffs concern is that the temporary placement of these structures would impact neighboring properties. A dwelling unit intended for the recuperation of an individual, placed in the back yard where children play and generate noise will introduce complaints. The expense involved in placing these structures, extending water, electricity (waste is typically held in a tank internal to the structure) will encourage longer term use of the structures, creating an enforcement challenge in removing the unit. The text of the statute is attached. A city may opt out of the legislation by ordinance. Staff seeks direction as to whether such an ordinance should be drafted. 5(1912016 Chapter 111- Minnesota Session Laws 2016 Minnesota Session Laws Key: (1) language te be deleted (2) new lang AgA CHAPTER 111—S.F.No. 2555 An act relating to local government; regulating zoning of temporary family health care dwellings; establishing temporary dwelling permits; amending Minnesota Statutes 2014, section 144D. 01, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 394; 462. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2014, section 144D.01, subdivision 4, is amended to read: Subd. 4. Housing with services establishment or establishment. (a) "Housing with services establishment" or "establishment" means: (1) an establishment providing sleeping accommodations to one or more adult residents, at least 80 percent of which are 55 years of age or older, and offering or providing, for a fee, one or more regularly scheduled health-related services or two or more regularly scheduled supportive services, whether offered or provided directly by the establishment or by another entity arranged for by the establishment; or (2) an establishment that registers under section 144D.025. (b) Housing with services establishment does not include: (1) a nursing home licensed under chapter 144A; (2) a hospital, certified boarding care home, or supervised living facility licensed under sections 144.50 to 144.56; (3) a board and lodging establishment licensed under chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 9530.4450, or under chapter 245D; (4) a board and lodging establishment which serves as a shelter for battered women or other similar purpose; (5) a family adult foster care home licensed by the Department of Human Services; (6) private homes in which the residents are related by kinship, law, or affinity with the providers of services; (7) residential settings for persons with developmental disabilities in which the services are licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or applicable successor rules or laws; (8) a home -sharing arrangement such as when an elderly or disabled person or single -parent family makes lodging in a private residence available to another person in exchange for services or rent, or both; (9) a duly organized condominium, cooperative, common interest community, or owners' association of the foregoing where at least 80 percent of the units that comprise the condominium, cooperative, or common interest community are occupied by individuals who are the owners, members, or shareholders of the units; of (10) services for persons with developmental disabilities that are provided under https://www.revisor.mn.govflawsl?year=2016& ypero&doctype=Chapter&id=111 1/6 511VM16 Chapter 111- Minnesota Session laws a license according to Minnesota Rules, parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or under chapter 24513; or (l)a temporary family health care dwelling as defined in sections 394.307 and 462.3593. Sec. 2. [394.3071 TEMPORARY FAMILY HEALTH CARE DWELLINGS. Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanies giXen. (b) "Caregiver" means an individual 18 years of an or older who: (1) provides care for a mentally or physically impaired person; and (2) is a relative, legal guardian, or health care agent of the mentally or physically impaired person for whom the individual is caring. c "Instrumental activities of daily living" has the meaning given in section 256B.0659, subdivision 1, paragraph (i). (d) "Mentally or physically impaired person" means a person who is a resident of this state and who requires assistance with two or more instrumental activities of daily living as certified in writing by a physician, a physician assistant, or an advanced practice registered nurse licensed to practice in this state. (e) "Relative" means a spouse, parent, grandparent, child, grandchild, sibling, uncle, aunt, nephew, or niece of the mentally or physically impaired person. Relative includes half, step, and in-law relationships. "Temi)oMa family health care dwelling" means a mobile residential dwelling providing an environment facilitating a caregiver's provision of care for a mentally or Physically impaired person that meets the requirements of subdivision 2. Subd. 2. TemRoraKy famft health care dwellin . A temporary fain_ _ily health care dwelling must: (i) be primarily assembled at a location other than its site of installation; (2) be no more than 300 gross square feet; (3) not be attached to a permanent foundation; (4) be universally designed and meet state -recognized accessibility standards: (5) provide access to water and electric utilities either by connecting to the utilities that are serving the principal dwelling on the lot or by other comparable means: (6) have exterior materials that are compatible in composition, appearance, and durabilily to the exterior materials used in standard residential construction• (7) have a minimum insulation rating of R-15, (8) be able to be installed, removed, and transported by a one -ton pickup truck as defined in section 16 8.002, 2lb, a truck as defined in section 168.002, subdivision 37, or a truck tractor as defined in section 168.002, subdivision 38; (9) be built to either Minnesota Rules, chapter 1360 or 1361, and contain an Industrialized Builds Commission seal and data plate or to American National Standards Institute Code 119.2; and 10 be eguipped with a backflow check valve. Subd. 3. Temporary dwelling permit; application. (a) Unless the county has designated temporal family health care dwellings as permitted uses a temporary family health care dwelling is subiect to the provisions in this section. A temporary family health care httpsJANww.revisor.mn.govAawsr?year=2016&type=0&doctype-Chapter&id=111 y6 WI W2416 Chapter 111- M innesota Session laws dwelling that meets the requirements of this section cannot be prohibited by a local ordinance that regulates accessW uses or recreational vehicle parkilLor storas e; (b) The caregiver or relative must apply for a temporary dwelling permit from the county. The permit application must be signed by the primary caregiver, the owner of the property on which the temporary family health care dwelling will be located and the resident of the property if the property owner does not reside on the nert�i. and include: (1) the name, address, and telephone number of the property owner, the resident of the property if different from the owner, and the primal =egiver responsible for the care of the mentally or physically impaired person, and the name of the mentally or physically i aired person who will live in the temporary fami)ly health care dwelling (2) proof of the provider network from which the mentally or physically imd person may receive respite care,primaty care. or remotepatient monitories services; (3) a written certification that the mentally or physically impaired person reauires assistance with two or more instrumental activities of daily living signed by a physician, a nhysician assistant, or an advanced practice registered nurse licensed to practice in this state, (4) an executed contract for septic service management or other proof of adequate se tic service management-, (5) ann ement- (5) an affidavit that the applicant has provided notice to adjacent property_ owners and residents of the application for the temporary dwelling permit: and (6) a general site map to show the location of the ternporary family health care dwelling and other structures on the lot. c The teriavorary family health care dwelling must be located on-oroperty where the caregiver or relative resides. A temporary family health care dwelling must comply with all setback requirements that apply to the primary structure and with any maximum floor area ratio limitations that may apply to the primary structure. The temporary family health care dwelling must be located on the lot so that septic services and emergencv vehicles can gain access to the temoorary familv health care dwelling in a safe and timely manner. (d) A temporary family health care dwelling is limited to one occupant who is a mentally or physically_un�ed person. The person must be identified in the application. Only one temporary family health care dwelling is allowed on a lot. (e) Unless otherwise provided, a temporary family health care dwelling installed under this section mustcomply with all applicable state law and local ordinances. Subd. 4. Initial permit term, renewal. The initial temporary dwelling permit is valid for six months. The applicant may renew the permit once for an additional six months. Subd. 5. Inspection. The county may require that the permit holder provide evidence of compliance with this section as long as the temporary family -health care dwelling remains on the property. The county may inspect the temporary family health care dwelling at reasonable times convenient to the caregiver to determine if the temporary family health care dwelling is occupied and meets the requirements of this section. Subd. 6. Revocation of permit. The county may revoke the temporary dwellingpermit f the uermit holder violates any requirement of this section. If the caunt_v_revokes a permit, the permit holder has 60 days from the date of revocation to remove the temporary family health care dwelling. Subd. 7. Fee. Unless otherwise specified bean action of the. county board,. the c2untym2Y https:/lwww.revisor.mn.govllawat?year=2416&type=O&doctype=Chapter&jd=111 316 5119/2016 Chapter 111 - Minnesota Session Laws charge a fee of up to $100 for the initial permit and up to $50 for a renewal of the permit. Subd. 8. No public hearing required; application of section 15.99. (a) Due to the time - sensitive nature of issuing a temporary dwelling ermit for a tMorary family health care dwelling, the county does not have to hold a public hearing on the application. The j2rocedures governing the time limit for deciding an a lication for the temporary dwelling permit under this section are governed by section 15.99, except as provided in this section. The county has 15 days to issue a permit reauested under this section or to deny it, except that if the county board holds regular meetings only once 12 calendar month the c2= has 30 days to issue a permit requested under this section or to deny it. If the county receives a written request that does not contain all required information, the applicable 15 -day or 30 -day limit starts over only if the county sends written notice within five business daps of receipt of the request telling the requester what information is missing. The county cannot extend the period of time to decide. Subd. 9. Opt -out. A_county may by resolution ont-out of the requirements of this section. Sec. 3. [462.35931 TEMPORARY FAMILY HEALTH CARE DWELLINGS. Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given. b) "Caregiver" means an individual 18 years of age or older who: (1) provides care for a mentally orphvsically impaired person; and (2) is a relative, legal guardian, or health care agent of the mentally or physically impaired uerson for whom the individual is caring. (c) "Instrumental_ activities of daily living" has the meaning given in section 256B.0659, subdivision 1, paragaighli (d) "Mentally or physically impaired person" mewls a person who is a resident of this state and who requires assistance with two or more instrumental activities of daily living as certified in writing by a q sician, a physician assistant�or an advanced practic registered nurse licensed to practice in phis state. (e) "Relative" means a spouse, parent, grandparent, child, grandchild, sibling, uncle, aunt, nephew, or niece of the mentally or physically impaired person. Relative includes half, step, and in-law relationships. T -... - - (fl "Temporary family health care dwelling" means a mobile residential dwelling, rop viding an environment facilitating a caregiver's provision of care for a mentally or physically impaired person that meets the requirements of subdivision 2. Subd. 2. Temporary fag& health care dwelling, A temporary family health care dwelling must: (1) be primarily assembled at a location other than its site of installation-, (2) be no more than 300 gross square feet; (3) not be attached to a permanent foundation; (4) be universally designed and meet state -recognized accessibility standar (5) provide access to water and electric utilities either by connecting to the utilities that are serving the principal dwelling on the lot or by other comparable means: 6 have exterior materials that are compatible in com22 ition, appearance, and durability to the exterior materials used in standard residential construction; (7) have a minimum insulation rating of R-15; https:Nwww.revisor.m n.govAaws/?year=2016&type--O&doctype=Chapter&&-111 416 5(19/2016 Chapter 111 - Minnesota Session Laws (8) e able to be installed, removed, and transported by a one -ton pickup truck as defined in section 1168_002. subdivision 2lb a truck as defined in section 168.002. subdivision 37, or a truck tractor as defined in section 168.002, subdivision 38; 9 be built to either Minnesota Rules cha ter 1360 or 1361 and contain an Industrialized Buildings Commission seal and data plate or to American National Standards Institute Code 119.2; and f 101 be equipped with a backflow check valve. Subd. 3. Temporary dwelling Kermit: application. (a) Unless the municipality has designated temporary family health care dwellings as permitted uses, a temporary family health care dwelling is subject to the provisions in this section. A temporary family health care dwelling that meets the requirements of this section cannot be�rohibited by aaocal ordinance that regulates accessom uses or recreational vehicle parking or storage. (b) The caregivcr or relative must apply for a tem onrary dwelling permit from the municipality. The permit a>aplication must be signed by the primary caregiver, the owner of the property on which the temporary family health care dwelling will be located, and the resident of the property if the property owner does not reside on the property, and include: (1) the name, address, and telephone number of the property owner, the resident of the property if different from the owner, and the primary care iva, er responsible for the care of the mentally or physically imnairedperson;_and the name of the mentally or Dhvsically impaired person who will live in the temporary family health care dwelling: (2) proof of the provider network from which the mentally or nzvsically impaired person may receive respite care, primary care, or remote patient monitoring services; (3) a written certification that the mentally or physically impaired person requires assistance with two or more instrumental activities of daily living signed by a physician,_ a physician assistant, or an advanced practice registered nurse licensed to practice in this state-, (4) an executed contract for septic service manatement or other proof of adequate septic service management-, (5) an affidavit that the applicant has provided notice to adjacent property owners and residents of the application for the temporary dwelling permit; and (6) a general site map to show the location of the temporary family health care dwelling and other structures on the lot. (c) The temporary family health care dwelling must be located on propery where the caregiver or relative resides. A temporary family health care dwelling must comply with all setback requirements that apply to the urimary structure and with any maximum floor area ratio limitations that may pply to the primary structure. The temporary family health care dwelling must be located on the lot so that septic services and emergencv vehicles can gain access to the temporary familv health care dwelling in a safe and timely manner. (d) A temporary family health care dwelling is limited to one occupant who is a mentally or physically impaired person. The person must be identified in the annlication. 0& one temporary family health care dwelling is allowed on a lot, (e) Unless otherwise provided, a temporary family health care dwelling installed under this section must comply with all applicable state law, local ordinances, and „charter provisions. Subd. 4. Initial permit term; renewal. The initial temporary dwelling permit is valid for https:/M ww.revisor.mn.govflawsl?year=2016&type=0&doc4?e=Chapter8jd=111 5/6 5/19/2016 Chapter 111 - Minnesota Session Laws six months. The applicant may renew the permit once for an additional six months. Subd. 5. Inspection. The municipality may require that the permit holder provide evidence of compliance with this section as lona as the temporary family health care dwelling remains on the vro-Derty. The municipality may insi3ect the temporary family health care dweliina at reasonable times convenient to the caregiver to determine if the temporary family health care dwelling is occupied and meets the requirements of this section. Subd. 6. Revocation of permit. The municipality may revoke the temporary dwelling permit if the permit holder violates any requirement of this section. If the municipality revokes a permit, the permit holder has 60 days from the date of revocation to remove the temporary family health care dwelling. Subd. 7. Fee. finless otherwise provided by ordinance, the municipality may charge a fee of u to 100 for the initial en -nit and u to 50 for a renewal of the permit. Subd. 8. No public hearing required; application of section 15.99. a Due to the time - sensitive nature of issuing a temporary dwelling permit for a temporary family health care dwelling, the municipality does not have to hold a,public hearing on the application. (b) The procedures governing the time limit for deciding an application for the =2Laa dwelling ermit under this section are governed by section 15.99 except as provided in this section. The municipality has 15 days to issue a permit requested under this section or to deny it: except that if the statutory or home rule charter city holds re alar meetings only once per calendar month the statutory or home rule charter city has 30 days to issue a permit requested under this section or to deny it. If the municipality receives_a written request that does not contain all required information the alDlDlicable 15 -day or 30 - day limit starts over only if the municipality sends written notice within five business days of receipt of the request telling the requester what information is missing. The municipality cannot extend the period of time to decide. Subd. 9. Opt -out. A municipality may by ordinance opt -out of the requirements of this section. Sec. 4. EFFECTIVE DATE. This act is effective September 1, 2016, and applies to t=2M dwelling permit applications made under this act on or after that date. Presented to the governor May 12, 2016 Signed by the governor May 12, 2016, 1:27 p.m. Copyright Q 2016 by the Revisor of Statutes, State of Minnesota. All rights reserved. httpS:/Nrww.revisor.mn.govflawsl'?year=2016&type=O&d"po-Chapter&ld=111 616