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HomeMy WebLinkAbout06-27-2016 Council Work Session PacketCity Council Work Session Monday, June 27, 2016 Orono City Hall 4:00 p.m. AGENDA 1. Prosecuting Attorney Interviews a. 4:00 p.m. Carson, Clelland & Schreder b. 4:30 p.m. Kenneth Potts, P.A. c. 5:00 p.m. Gregerson, Rosow, Johnson & Nilan, Ltd. d. 5:30 p.m. Tallen and Baertschi 2. 2017 Budget Priorities Work Session Topics or Requests Annual: • Budget and Goals: part of June, all of July, August and October. • City Administrator & Police Chief update (3 times per year for 15 minutes) • Joint Planning Commission/Park/Council meeting for check-in/direction (11/9/15) Additional topics: • Emerald Ash Borer and presentation from 3 Rivers regarding invasive species (LL) • Sewer Connection Fees Policy (MG) • Marina licensing (MG) • Construction Hours — Truck Traffic (LL) Previous Work Session Topics May 23, 2016 • Hennepin County Assessing Contract • City Administrator Verbal Update • 2017 Budget Goals • Road Funding and Planning • Planning Packet Information 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 Q CITY OF ORONO yy Street Address: Mailing Address: Telephone(952)249-4600 2750 Kelley Parkway P.O.Box 66 Fax (952)249-4616 ! F Orono,MN 55356 Crystal Bay,MN 55323 www.ci.orono.mn.us '4kEs H o' March 29, 2016 The City of Orono invites the submission of a proposal for prosecution legal services. The City of Orono has 7,500 residents and is located 20 minutes west of Minneapolis on Lake Minnetonka. All correspondence should be directed to: City of Orono Jessica Loftus, City Administrator Mailing Address: P.O. Box 66 Crystal Bay, MN 55323 Physical Address: 2750 Kelley Pkwy Orono, MN 55356 Email: jloftus@ci.orono.mn.us Phone: 952-249-4601 All proposals must be received at the City offices no later than 4 p.m., Friday, April 29, 2016. Thank you for your interest, time, and efforts. joi \ CITY OF ORONO, MINNESOTA REQUEST FOR PROPOSALS FOR PROSECUTING ATTORNEY SERVICES SECTION I. PURPOSE The City of Orono is requesting proposals from experienced firms for prosecution legal services. SECTION IL GENERAL INFORMATION The City of Orono is a managed growth community of 7,500 people located 20 minutes west of Minneapolis on Lake Minnetonka. Orono encompasses an area of 24 square miles, 30% of which is Lake Minnetonka. Orono operates as a Statutory Plan A City with a City Administrator. The City is governed by a five member City Council which includes four members elected at large, and a Mayor elected at large. The City has a strong tax base, driven by high valued lakeshore homes and large lot residential development. The City is about 90% developed, and projects an ultimate population of around 9,800. Orono has one small commercial district (Navarre) and shares a "downtown" commercial district with the City of Long Lake. The City has 54 full-time employees plus various seasonal part-time employees, and a 2016 General Fund budget of$7.7 million. The relevant City of Orono crime statistics have been included in Exhibit A. SECTION III. GENERAL INSTRUCTIONS AND TIMETABLE All correspondence should be directed to the City of Orono,Jessica Loftus, City Administrator, email to jloftus(a)ci.orono.nm.us,by phone 952-249-4601 or physical address 2750 Kelley Parkway, Orono, MN 55356 (mailing address: P.O. Box 66, Crystal Bay, MN 55323). A. All proposals must be received at the City offices no later than 4:00 p.m., Friday, April 29, 2016. Ten(10)physical copies of the proposal must be presented to the address above along with one digital version. The copies shall be sealed and clearly identified with "Prosecuting Attorney RFP"by the submittal deadline. B. The proposal shall be limited to a maximum of 25 pages,printed on one side. Additional material, other than that requested by the City of Orono, will be disregarded. 1 C. In order to ensure a fair review and selection process, firms submitting proposals are specifically requested not to make other contacts with the City staff or Councilmembers regarding their proposals. D. An evaluation committee composed of Council members,the City Administrator, Police Investigative Sergeant, and other City staff, as deemed appropriate, will review proposals in May 2016, identify finalists and schedule interviews in June or July. The City plans to make a final selection by the fall of 2016. The effective date of legal services will be January 1, 2017 or as negotiated to assure a smooth transition. E. The term of the appointment as Prosecuting Attorney shall be five years, subject to ongoing review and evaluation by the City Council and City Administrator. SECTION IV.REQUIRED CONTENTS FOR PROPOSALS A. Proposing Firm Overview-Provide the following information: 1. Background information concerning the firm, including the number of years in business under this name and services available from the firm. 2. Services available from personnel in the proposing office. 3. Current use of technology, especially capability for computerized legal research and for sharing or editing documents electronically. 4. Statement of 2015 billings for municipal work as a percentage of total billings. 5. Statements of any malpractice claims and/or ethics complaints taken against your firm or firm's attorney(s) over the last ten years and the status or outcomes of such action. 6. Indicate whether any action is pending or is currently under review. B. Identification and Qualifications of Assigned Personnel -The ideal firm should have extensive experience in municipal law in the local courts. Provide the following information: 1. The name of the person who will serve as the lead attorney for the City together with a resume describing that person's experience and qualifications. Indicate current firm responsibilities. 2. Identify who will serve in the lead attorney's absence along with the names and resumes of other professional staff who will supply services for which the City will be charged. 3. An organizational chart identifying team members and their areas of responsibility, in addition to the years of experience they have in their particular area of proficiency. 4. A statement committing the aforementioned staff to this proposal. C. Related Experience - Provide the following information: 1. The firm's experience in performing similar work. Also note experience with litigation in the Ridgedale Court System. 2. The firm's demonstrated ability to deliver work on time and within budget. 3. List of communities currently being served by the applicant's company and number of years. D. Scope of Services - The proposal shall present the firm's detailed approach to the Scope of Work detailed in Section V. 2 E. Basis for Compensation 1. Indicate the dollar amount of fixed and/or hourly fees your firm will charge for providing the legal services covered by your proposal. The City prefers a fixed annual contract but is willing to consider other compensation plans. 2. Identify compensation for handling of forfeiture cases(e.g. percentage and/or fee). F. List of References, Past Claims, Potential Conflicts, Disclosures, Insurance 1. A minimum of three references for public clients shall be provided, preferably for comparable city services performed within the past three years. List any cities you stopped representing in the last three years. 2. Indicate whether designated lead attorney or the law firm currently represents any other local units of government having jurisdiction within, or contiguous to, the City of Orono. 3. Potential conflicts of interest must be disclosed. 4. List any and all personal or professional relationships that the proposed lead attorney has with the City Council members or member of the community. 5. Statement of any insurance claims and/or ethics complaints taken against your firm or firm engineer(s) over the last five years and the status or outcomes of such action. Indicate whether the action is pending or is currently under review by the State Ethics Board. 6. Applicant Authority- provide assurance that the signator making representations in the proposal on behalf of the proposer has the authority to do so. 7. Please provide a copy of Certificate of Professional Liability Insurance in a minimum amount of$1,000,000. SECTION V. SCOPE OF WORK A. Prepare appropriate complaints, pre-trial notices, and legal research briefs as required. B. Seek additional investigation if warranted. C. Represent and prosecute all criminal law matters within the City's jurisdiction. This includes all such cases initiated by the law enforcement agencies and citizen complaints that include but not limited to traffic violations, theft, vandalism, violence, DWI and city code violations. D. Reviewing all criminal cases presented for purposes of prosecution, determine compliance with criminal code and other state statutes, assist with writing complaints, making recommendations to the Police Department, and the Court for alternative considerations where appropriate. E. Act as a resource to the Police Department in the development of criminal cases and provide assistance to enforcement staff as needed. F. Represent and prosecute criminal law matters in coordination with officer scheduling and court appearances. 3 G. Seek timely pursuit of disposition of criminal cases in advance of actual court cases to avoid unnecessary officer court time. H. Try all jury and court cases. I. Examine, evaluate and provide representation for all appeals. J. Provide training sessions and legal updates for enforcement staff as needed. K. Process and present vehicle forfeiture cases related to DUI violations. L. Aggressively seek restitution to the City for all relevance costs for prosecution. M. Notify and communicating with crime victims. N. Describe the systems or mechanisms that would be established for monthly reporting of the status of litigation,projects, and requests. O. Present an annual report to the City Council. SECTION VI. SELECTION A. Qualifications for the top candidates will be verified and references will be checked. In reviewing the proposals, the committee will carefully weigh the following: 1. The firm's approach to and understanding of the Scope of Work. 2. The firm's experience with similar contracts and clients. 3. The experience and qualifications of the proposed staff in providing similar services. 4. The firm's demonstrated ability to deliver work on time and within budget. 5. The extent of involvement by key personnel. 6. The extent to which previous clients have found the firm's services acceptable. 7. The firm's most significant qualifications for this proposal. 8. Previous City experience with the proposing firm, if any. 9. Acceptability of the firm's retainer proposal. 10. Communication skills. 11. Costs of services. 12. Other qualifications/criteria, as deemed appropriate by the City Council. SECTION VII TERMS AND CONDITIONS A. The City of Orono reserves the right to cancel or amend the request for proposals at anytime. The City of Orono reserves the right to determine the successful respondent. The City of Orono reserves the right to reject any or all proposals. B. The City of Orono will not be liable for any costs incurred by the firm responding to this request. C. A contract will be executed between the successful respondent and the City of Orono. It is anticipated that the successful firm's proposal and the specifications of this request, including the Terms and Conditions set forth herein, will be incorporated in the contract. 4 D. The firm shall not assign any interest in this proposal and shall not transfer any interest in the same without the prior written consent of the City of Orono. E. For the purposes of this agreement,the consultant shall be deemed to be an independent contractor, and not an employee of the organization. Any and all agents, servants,or employees of the firm or other persons,while engaged in the performance of any work or services required to be performed by the City of Orono under this agreement, shall not be considered employees of the City of Orono and any and all actions which arise as a consequence of any act or omission on the part of the firm,its agents, servants, employees or other persons shall in no way be the obligation or responsibility of the City of Orono. The consultant, its agents, servants, or employees shall be entitled to none of the rights,privileges, or benefits of organization employees except as otherwise may be stated herein. F. No official or employee of the City of Orono who exercises any responsibilities in the review, approval or carrying out of the proposal shall participate in any decision which affects his or her direct or indirect personal or financial interest. G. The consultant further agrees to comply with all federal, state and local laws or ordinances, and all applicable rules, regulations, and standards established by any agency of such governmental units, which are now or hereafter promulgated insofar as they relate to the firm's performance of the provisions of this agreement. H. If, for any reason, in the City's sole opinion,the firm shall fail to fulfill in timely and proper manner the obligations under the contract, the City of Orono shall reserve the right to terminate the contract by specifying the date of termination in a written notice to the firm at least thirty(30) calendar days before the termination date. In this event, the firm shall be entitled to just and equitable compensation for any satisfactory work completed. I. The contract will require that the individual or law firm selected maintain general liability, malpractice, automobile, worker's compensation and errors and omissions insurance. 5 Sample Interview Questions for Prosecuting Attorney Please feel free to choose questions from the wide variety of sample questions below. General 1. What is your interpretation of the role of Prosecuting Attorney and why is it valuable? 2. What separates you/your firm from other attorneys/firms and why is your firm the best choice? Orono Needs 1. Please tell me what you know about our City and its legal needs. 2. What do you think will be the 2 most challenging issues from a Prosecuting Attorney perspective for the City of Orono in the next 5 years? 3. What do you think a city of our size should be looking for in a consulting legal firm? 4. Provide your understanding of and experience with litigation in the local Ridgedale Court System. Experience, Approach, Quality Control 1. Describe a typical prosecution case from start to finish. 2. Give us an example of a case that you personally worked on that involved creative problem solving and a willingness to consider alternative approaches to deliver cost effective solutions. 3. Give us an example of a case that your firm oversaw where problems arose during it, and explain how they were addressed. 4. How would you handle a situation when an influential leader in the community calls you to inquire about a case? 5. Does your firm have an internal "Quality Control" capability? Please explain how the City of Orono would be benefitted by such capability. Tell us about a significant mistake you made with a city client, how it was found, how it was corrected, how you ensured it didn't occur again. Staffing, Service Level, Areas of Expertise �. What other cities does the lead attorney work with? Can the primary attorney respond to immediate concerns given other work commitments? 2. What is your firm's technology capabilities and do you provide monthly status reports that include case declinations with rationale? What process would be used to replace a team member assigned to Orono if they should leave, retire or be reassigned within your company? Philosophy, Teamwork 1. How do you decide when a conflict of interest exists and how do you handle sending cases out to a conflict attorney? 2. Describe your approach to working with the Police Department administration and describe your expectations when working with officers regarding citations and arrests. Admin., Costs, Billing 1. What is your firm's history of annual increases to multi-year contracts? 2. What contract term is the least required by you? Is a 1 year contract acceptable or a 5 year contract with a flexible cancellation clause? 3. How do you address the inefficiencies of the going through a transition for cases and how long do you anticipate a full transition would take? What do you think will be the associated costs in dollars and city staff time of getting up to speed? Do you have any questions of us or is there anything you would like to add that hasn't already been covered? Additional Questions to Consider for Jennifer Spalding 1. How could we manage an hourly rate proposal given it puts the City into a poor negating position 6 months into a contract? Additional Questions to Consider for Steve Tallen 2. Are you willing to cap expenses at 10% of the contract ($3,200) or simply include it in contract cost? Are you willing to set boundaries of 1-5% around your proposed COLA increases for years 3-5? PROPOSAL FOR LEGAL SERVICES FOR THE CITY OF ORONO, MINNESOTA April, 2016 Carson, Clelland & Schreder ATTORNEYS ATLAW Submitted by: Carson, Clelland & Schreder, Attorneys at Law 6300 Shingle Creek Parkway Suite 305 Brooklyn Center, MN 55430 763 -561 -2800 -Phone david.ross(d),carsoncs.net INTRODUCTION The law firm of Carson, Clelland & Schreder is pleased to submit a proposal for criminal prosecutorial legal services for the City of Orono. Our firm has had a long standing commitment to the practice of municipal law and has continuously represented many Minnesota municipalities for more than thirty years. The firm believes that it will bring a high level of expertise and commitment of excellence to the legal representation in criminal prosecution on behalf of the City of Orono. LAW FIRM BACKGROUND The law firm of Carson and Clelland commenced its practice in August, 1979, with its attorneys and founding partners Jeffrey A. Carson and William G. Clelland. The firm is located at 6300 Shingle Creek Parkway, in Brooklyn Center, Minnesota, at the intersection of Interstate 694 and Shingle Creek Parkway. Ellen Schreder joined as a partner in 1996. David Ross, John Thames, and Dawn Speltz joined as partners in 2016. The firm also employs two associate attorneys, Sami Corlew and Joseph Murphy. The founding partners of the firm, Jeffrey A. Carson and William G. Clelland were admitted to the practice of law in the State of Minnesota in 1972 and in 1975. The two have been associated with one another for the practice of law for the past 36 years. Each attorney has practiced in the field of municipal law since his admission to the bar and in many cases, has represented the same municipality for more than 30 years. The firm also employs as support staff, three paralegals and two legal assistants, all of whom have extensive experience handling criminal legal work for multiple municipalities. The staff is competent, professional, and responsive to the firm's clients and we are very proud of their work. The firm is engaged in the general practice of law for private clients, but with a substantial commitment to municipal law and criminal prosecution. The firm devotes approximately 75 percent of its time to its municipal clients, providing both civil legal services and criminal prosecution for the cities of Spring Lake Park (since 1975), Corcoran (since 1978), Maple Plain (since 1978), Greenfield (since 1984), Long Lake (since 2010), Rogers (since 2004), and Ham Lake (since 2015). In addition, the firm provides criminal prosecution and related civil services for the cities of Brooklyn Center (since the early 1980s), Independence (since 1979), Hanover (since 2003), Dayton (since 2015), and Columbus (since 2015). The firm compliments its municipal practice by also practicing in the fields of real estate, family law and all aspects of trial work. By engaging in comprehensive civil and criminal municipal work our firm is able to offer our municipal clients the institutional knowledge necessary to effectively advise City Staff and Law Enforcement in almost all circumstances that would arise in the criminal prosecution area. We offer full services, including vehicle forfeitures, appellate representation, as well as having extensive experience in code enforcement. The resources of the law firm include all photocopying facilities, computers, email, facsimile machines and Westlaw. The firm is equipped to respond to inquiries on a daily basis via 2 phone, email or fax. We have compatible computer programs and software to maintain appropriate communication with the City, including the ability to share and edit documents electronically. All attorneys are equipped with laptops, allowing them to work remotely at the City as needed. Furthermore, the firm works closely with the League of Minnesota Cities, and maintains access to the materials and resources available from the League. The firm maintains professional liability insurance in the amount of $1,000,000 per claim and the aggregate amount of $3,000,000 with a $5,000 deductible. No attorney has ever been the subject of any professional discipline. Our firm is committed to compliance with all state and federal laws regarding civil rights and equal opportunity. CITY STAFF/CITY ATTORNEY RELATIONSHIP The City Staff would have easy access to all attorneys within the firm to meet their criminal prosecution needs. Attorneys are available by email and phone on a daily basis. The firm also offers weekend "on-call" coverage for emergency situations that may arise. The City Attorney would provide a thirty-six (36) hour response time on council and staff inquiries, and provide same day response time on emergency situations when possible. The City Attorney would provide five business day turnaround on standard document review. The firm is fully computerized with PC computers utilizing Microsoft Word for Windows, as well as a high speed internet connection, such that emails and files may be easily transmitted electronically between the City Staff and City Attorney. The firm currently accesses LOGIS LaserFiche and LETG (Law Enforcement Technology Group) for multiple municipal clients, to retrieve police reports, agendas, packets, minutes or archived documents. Our office is also equipped with DVS, MNCIS and MGA access necessary to conduct business as the City's prosecutorial authority. MUNICIPAL PROSECUTION David Ross serves as the lead prosecuting attorney for the firm's Hennepin County municipal prosecution clients. Mr. Ross has served our firms municipal clients in the area of criminal prosecution for over seventeen years. The responsibilities as lead prosecuting attorney include the establishment and maintenance of plea negotiation standards for all cases as well as supervision of all the support staff for those jurisdictions. Mr. Ross, along with Ms. Corlew and Mr. Murphy all practice predominately in the field of criminal prosecution and municipal law and all attorneys are available to assist one another and supplement services as required. In terms of organization, Mr. Ross has primary responsibility for establishing the guidelines for the initiation, supervision and prosecution of criminal cases, including decisions as to what charges, if any, shall be brought and the establishment and maintenance of standards regarding appropriate plea negotiations, disposition of those cases according to those standards and the trial of cases not settled. The law firm believes that plea negotiations serve a necessary and useful function to resolve cases according to their individual merits and characteristics but also believes that negotiations must be conducted only in a responsible and conservative manner with just consideration for the rights of victims and the punishment of those adjudged guilty. 7 The firm has worked to develop the electronic case management system within the office, working toward "paperless prosecution", which includes processing e -complaints and electronic case referrals. With these resources, the firm is able to prepare complaints within the same day they are submitted, when necessary, and will complete and return complaints within four weeks when they are not urgent. With e -charging capability the charging process is seamless for law enforcement agencies, allowing them to execute and file a complaint without leaving the walls of the police department. Our legal support staff schedules and coordinates officer appearances directly with law enforcement agencies via e-mail or other method directed by the law enforcement agency. In most cases we will provide a minimum of three to four weeks' notice prior to the appearance with the exception of speedy trial settings. All prosecuting attorneys are available, on a rotating basis, for consultation over weekends and holidays should the need arise. In addition, the firm is also pleased to offer their services as special prosecutor for the City of Orono in relation to all property maintenance, licensing, and rental housing code violations. The attorney handling the in court prosecution would be David Ross, with support and coverage from Ms. Corlew, Mr. Murphy, and Mr. Thames as necessary. The prosecutorial attorneys work together in a cooperative approach to ensure that all criminal appearances are covered not only at Ridgedale, but also downtown for Jury Trial appearances. As a partner at Carson, Clelland & Schreder, Mr. Ross has the authority to ensure that all representations made in this proposal are accurate. The firm has extensive experience working in the Ridgedale Court System on behalf of the cities of Long Lake, Maple Plain and Independence. Over the years, we have developed strong working relationships with the Hennepin County Judges, court administration personnel, probation representatives, and victim advocates at Ridgedale. We are familiar with all of the procedures and expectations in the Ridgedale Court System and could make a seamless transition into prosecuting on behalf of the City of Orono The firm also provides annual legislative update training to police departments as requested by our municipalities. We offer these services as a joint training with our other local law enforcement agencies which we represent or specifically refined to one agency's needs or requested topics. In addition the firm offers full service vehicle forfeiture representation on behalf of our represented police departments. A high priority is given in response to requests from the council, department heads and staff. With six attorneys, all of whom have prosecution experience, we can generally provide responses on the same day basis for prosecution issues. The firm also sends a letter to the City and its law enforcement agencies after each court date, giving the disposition of each resolved criminal matter, and its basis for disposition. PROFESSIONAL RESUME OF DAVID ROSS David Ross graduated magna cum laude from Luther College with a degree in political science and graduated with distinction from the University of Iowa College of Law. During law school Mr. Ross participated in Iowa Law Review. After law school he clerked for two years for 4 two district court judges in Minnesota, Terry Dempsey, and Terri Stoneburner. In 1998 he joined Carson, Clelland & Schreder and has been involved in criminal prosecution for the last seventeen years. Mr. Ross has handled numerous criminal jury trials, thousands of court trials, and has argued at the Court of Appeals on multiple occasions. Mr. Ross also handles DWI related motor vehicle forfeiture matters. With over seventeen years of prosecution experience Mr. Ross has developed a good working relationship with numerous law enforcement agencies, judges, and court staff. Mr. Ross has served as lead criminal attorney for the Hennepin County clients of Brooklyn Center, Rogers, Corcoran, Greenfield, Long Lake, Maple Plain and Independence since 2011, and has served as lead criminal attorney for the City of Dayton since 2015. Mr. Ross is a member of the Hennepin County Bar Association, and the Hennepin County Suburban Prosecutors Association. Mr. Ross also serves as field instructor for the William Mitchell School of Law and the University of Minnesota School of Law prosecution clinics. PROFESSIONAL RESUME OF JOHN THAMES John Thames graduated magna cum laude from St. John's University in 2003. He graduated cum laude from the University of Minnesota Law School in 2006, where he was a director of the Labor and Employment Law Moot Court and a top member of the Multi -Profession Business Law Clinic. Mr. Thames worked as a law clerk with Bonner and Borhart, LLP before joining Carson, Clelland, and Schreder in December of 2006. Currently, Mr. Thames primarily handles the civil representation of the firm's municipal clients. Mr. Thames has developed a good working relationship with numerous judges, law enforcement agencies, attorneys, victim advocates, court personnel, and city representatives and personnel, and is an active member of the Hennepin County Bar Association and the Hennepin Count Suburban Prosecutors Association. Mr. Thames maintains regular contact with city representatives and law enforcement agencies to answer questions, address concerns, and remain informed of priorities maintained by municipal clients. PROFESSIONAL RESUME OF SAMANTHA CORLEW Sami Corlew started her career nearly 10 years ago as a paralegal before becoming an attorney in 2014. As a paralegal, she worked on almost every civil and criminal municipal matter which arose. She has drafted ordinances and municipal contracts of every sort. She is well versed in procedures and litigation related to code enforcement, special assessments, land use and development, and other municipal matters. She has extensive experience in legal research, brief writing and in -court hearings. Ms. Corlew has been practicing criminal prosecution and family law since becoming a licensed attorney in 2014. She has experience in gross -misdemeanor, misdemeanor and petty - misdemeanor cases and hearings at all levels. She also has experience advising law enforcement on policy and procedure and updates on legislative matters. 5 PROFESSIONAL RESUME OF JOSEPH MURPHY Joseph Murphy graduated cum laude from the University of Notre Dame with a degree in Government and International Studies, and graduated cum laude from the University of Minnesota Law School. During law school, he worked at the Minnesota State Public Defender's appellate office and at a law firm specializing in class action litigation. After law school, Mr. Murphy worked as a law clerk with Anoka County District Court Judge Donald Venne, who is now retired. In 2002, Mr. Murphy joined Sweeney, Borer & Sweeney (later Sweeney, Murphy & Sweeney) where he worked primarily in the areas of criminal prosecution and municipal law. Mr. Murphy represented a number of municipalities in Anoka County and Ramsey County and has extensive experience trying cases, litigating contested hearings, and arguing cases at the Minnesota Court of Appeals. Mr. Murphy joined Carson, Clelland & Schreder in 2015 and works with the firm's municipal clients in criminal and civil matters and assists private clients in criminal defense and family law matters. PROFESSIONAL RESUME OF DAWN SPELTZ Dawn Speltz, graduated cum laude from St. Olaf College with a joint degree in Economics and Political Science, and graduated cum laude from the University of Minnesota Law School in 2005. While in law school Ms. Speltz participated in the Journal of Law and Inequality as well as the Child Advocacy Clinic. Ms. Speltz joined the firm in 2003 as a Law Clerk, working primarily in the fields of criminal and family law. Upon graduation from law school, Ms. Speltz joined the firm as a full-time attorney. Ms. Speltz practices in the field of criminal prosecution and works as a liaison with the police departments and community development departments, to keep them apprised of new legislation and changes to the criminal court system. Ms. Speltz has previously served as the secretary of the Anoka County Prosecutors' Association, and works closely with that association and Court Administration to address the continually evolving changes that are facing the budget -stressed Court system. Ms. Speltz also works in our firm's family law area. REFERENCES The law firm of Carson and Clelland is pleased to invite the City of Orono to contact these clients of the firm for information about the firm and its performance over the years. City of Rogers: Jeff Beahen, Chief of Police 21860 Industrial Court Rogers, MN 55374 763-428-3450 Steve Stahmer, City Administrator 22350 S Diamond Lake Road Rogers, MN 55374 763-428-2253 Stacy Scharber, Assistant City Administrator 22350 S Diamond Lake Road Rogers, MN 55374 763-428-2253 City of Spring Lake Park: Dan Buchholtz, City Clerk/Treasurer 1301 81St Avenue NE Spring Lake Park, MN 55432 763-784-6491 Doug Ebeltoft, Chief of Police 1301 81St Avenue NE Spring Lake Park, MN 55432 763-784-6491 City of Maple Plain: Tessia Melvin, City Administrator 1620 Maple Avenue Maple Plain, MN 55359 763-479-0516 Gary Kroells, Director of Public Safety 1918 County Road 90 Maple Plain, MN 55359 763-479-0500 City of North St. Paul: Jason Ziemer, City Manager 2400 Margaret St. North St. Paul, MN 55109 651-747-2421 City of Corcoran: Brad Martens, City Administrator 8200 County Road 116 Corcoran, MN 55340 763-420-2288 City of Columbia Heights: City of Brooklyn Center: Scott Nadeau, Chief of Police 825 41 St Avenue NE Minneapolis, MN 55421 763-706-3755 Tim Gannon, Chief of Police 6645 Humboldt Avenue Brooklyn Center, MN 55430 763-569-3333 Curt Boganey, City Manager 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 763-569-3300 ASSESSMENT OF AVAILABILITY As stated previously, the firm approaches its municipal representation as a team approach. We have three attorneys who devote a large portion of their practice to criminal prosecution. All attorneys are available to assist the City with their prosecution needs, and can be reached after regular business hours should the need arise. Further we have knowledgeable and efficient staff dedicated to the organization, correspondence and coordination with our law enforcement agencies, as well as discovery compliance. We have one specific staff person dedicated to victim and witness coordination to ensure that crime victims within our municipalities receive the upmost service and dedicated response that they deserve. CONFLICTS OF INTEREST AND CONTINGUOUS PROSECUTION The firm is not presently aware that it represents any client who may have any actual or potential conflict with the City of Orono. The firm reviews its files and records immediately when it is retained by a client to determine whether or not any actual or potential conflict exists. The firm currently represents the contiguous municipalities of Long Lake, Maple Plain and Independence. Rather than presenting a potential conflict of interest, we feel this familiarity with and commitment to the surrounding communities makes Carson, Clelland & Schreder uniquely situated to serve the City of Orono's prosecution needs. FEES Option 1: Our firm proposes billing the criminal prosecution work on a flat fee basis, at a monthly retainer rate of $3,000/month, to include all general prosecution services, appellate criminal work and vehicle forfeitures, as well as one jury trial per year. Any additional jury trials to occur within the same calendar year would be billed at our regular hourly rate of $97.50/per hour. Option 2: Alternatively, our firm proposes billing the criminal prosecution work on an hourly basis, at the rate of $97.50/hour for attorney work and $37.50/hour for work performed by paralegals and legal assistants. There is no additional billing for incidental costs such as routine photocopying or facsimile, telephone, or regular printing, but there shall be a billing of actual charges for out-of- pocket costs, such as purchase of medical reports, service of subpoenas, any exceptional photocopying and Westlaw. All services are billed to the City based upon an accurate record of the time spent, but the attorneys will generally charge a minimum increment of ten minutes for correspondence and phone calls which we consider routine and which are not lengthy. The firm is also willing to adapt our billing format to the City's needs wherever possible. Our firm bills each municipal client monthly, itemizing the date of service, the attorneys and support personnel providing the service, indicating the time spent to each matter and the fee charged and setting forth a description of the services performed. TERM The firm proposes a five (5) year contract for services, in accordance with the City's Request for Proposals. We appreciate the Council's time and consideration of our firm as your City Attorney. We look forward to the opportunity to meet with you in person to discuss our qualifications, which we believe would make us an excellent candidate to serve as your City Attorney. Respectfully submitted, CARSON, CLELLAND & SCHREDER Dated: David Ross M KENNETH N. POTTS, P.A. Attorney at Law April 28, 2016 5101 Thimsen Avenue Suite 200 MINNETONKA, MINNESOTA 55345 TELEPHONE (952) 474-4240 TELECOPIER (952) 474-0987 pottskatty@aol.com PROSECUTING ATTORNEY RFP FOR ORONO It is my understanding that the work to be performed is prosecutions of any and all gross misdemeanor, misdemeanor and petty misdemeanor cases. This would include the issuance of formal complaints and trying court trials, jury trials and contested probable cause and Rasmussen Hearings. It also would require me to represent the City and Police Department in any and all forfeiture cases. Finally, it would require yearly updates in regard to legislation along with conducting any and all training seminars. Furthermore, over 30 years of experience in criminal prosecution the firm is best qualified to perform the engagement. I understand that the proposal is a firm and irrevocable offer. KENNETH N. POTTS, P. 1 E enneth N. Potts, P. " LAW FIRM BACKGROUND The firm has been in business since 1992 primarily engaged in municipal prosecution and other civil litigation. Currently 85% of the firm's work is municipal prosecution and does not engage in representing people charged with a crime. The firm has been prosecuting for the cities of Shorewood, Excelsior and Tonka Bay since 1992 to present. In 1998 it began prosecuting for the cities of Orono, Minnetonka Beach and Long Lake. In 2007 the firm began prosecuting for the cities of Minnetrista and St. Bonifacius. In 2013 the firm began prosecuting for the City of Mound. All of the prosecutions occur at the Ridgedale courthouse. Kenneth N. Potts attends a Continuing Legal Education seminar on a yearly basis put on by the Suburban Hennepin County Prosecutors Association. MUNICIPAL CRIMINAL CHARGES ORONO, MINNETONKA BEACH & MOUND Orono Total DWI Domestic Criminal Traffic Revenue 2014 45 11 233 102 $96,933.00 2015 35 8 239 74 $77,911.00 Minnetonka Beach Total DWI Domestic Criminal Traffic Revenue 2014 4 1 34 36 $6,040.00 2015 3 1 16 36 $6,198.00 Mound Total DWI Domestic Criminal Traffic Revenue 2014 36 19 208 636 $44,382.00 2015 34 18 130 434 $32,905.00 COMMUNICATION WITH POLICE DEPARTMENT LEGISLATIVE UPDATES Kenneth N. Potts would be the person primarily responsible for the management and administration of the contract with the City. The office location is 5101 Thimsen Avenue in the City of Minnetonka. A paralegal is employed primarily to assist in drafting all Complaints and securing court calendars. Kenneth N. Potts updates the police department every year with legislative changes and any cases that may impact on successful prosecution. The firm has phone, voicemail and email system applications and is able to obtain any and all records through MNCIS. Currently the firm is logged on with LOGIS. 2 STAFF QUALIFICATIONS Paralegal Sue Beulke began working for the firm in 1992. She came on with ten years experience and has a total of 34 years in the legal field. There will not be a billing fee for any work performed by a paralegal. Kenneth N. Potts will take full responsibility for any and all prosecutions. There have been no malpractice claims filed against the law firm. KENNETH N. POTTS 1979 Graduated Hamlin Law School 1979-80 Clerked for Judge Mork (Mower & Freeborn County) 1981-83 Associate, William F. Kelly & Associates (Prosecuted for Excelsior & Greenwood, General Civil Litigation) 1983-86 Assistant Carver County Attorney (Prosecuted felonies & misdemeanors) 1986-88 Associate, Katz, Lange & Manka (Prosecuted for St. Louis Park & Excelsior, Personal Injury and Workers' Compensation) 1988-91 Associate Standke, Greene (Personal Injury and Workers' Compensation) 1992 -Present Self -Employed (Prosecuting Attorney for Shorewood, Tonka Bay, Excelsior, Orono, Minnetonka Beach, Mound, Minnetrista, St. Bonifacius, Personal Injury, Serve as Arbitrator for No -Fault Arbitrations, Workers' Compensation) REFERENCES See three attached letters from: Lt. Craig Squires, Minnetrista Police Department Lt. Stephen P. Neururer, South Lake Minnetonka Police Department Chief Correy Farniok, Orono Police Department CONFLICT OF INTEREST The firm has no conflicts with any entity within the City of Orono and has not represented any individuals against the City of Orono The firm does not represent a union that is 3 04-18-16 To Whom It May Concern: Paul Falls J rerror ofPuhlic S*0 This latter represents my rEcor+tmendatia of iy,i. Kenneth Potts or 555E pV$ItIUn UE City attorney. I have worked closely with Mr. Potts since he became Minnetrista's City Prosecutor in 2007. Mr. Potts also handles DWI forfeitures for the City. His work in both capacities is very good. I would describe Mr. Potts as a dynamic prosecutor who is very fair in how he handles cases for both the City and the defendant. I found Mr. Potts to be reliable and knowledgeable when we have questions during investigations. He is very well liked among all staff in the Minnetrista Public Safety Department. Mr. Potts keeps staff well informed of case load progression and in doing so our Officers are properly prepared for court trials. Mr. Potts is honest, has high integrity, hard working and provides good value in his services. In addition, Mr. Potts utilizes technology well. An example of this is his rapid transition to using online ECharging for criminal complaints. I am confident that Mr. Potts would provide excellent legal services to any city, and I would not hesitant in recommending him. With Regards, i Craig, q�s�ir-es Lieutenant Minnetrista Public Safety Department 76.5 7 County Road i 10 West, Mirmetrisia, PAN 55364-9552 -)flicc: 952-445-1137 e Far: 952-446-1623 • E-tblaii: police((-e,,ci.minnetrista.mn.�zs a collective bargaining unit within the City. The firm does not represent individuals as defense attorneys for criminal cases. APPROACH TO SCOPE OF WORK The firm is interested in providing the services in the Core Municipal Prosecution Legal Services Requirements. BILLING SERVICES The firm is proposing a flat fee of $38,000.00 per year. The fees will be paid on a monthly basis. The fees will be paid pursuant to an invoice that does not itemize time. The fees will be for all services described above on Page l including appeals. The City will pay separately for any conflict attorney. FORFEITURE FEES The forfeiture fee will be the statutory percentage of 30%. In no case will the City be responsible for any attorney's fees over and above 30% of the value of the vehicle that is forfeited. Depending upon the facts, the prosecutor's philosophy is to engage in buybacks to limit costs and exposure to the City and the prosecutor's office. See attached I 1 ki"11.7V[41SKI /]�7TM APPLICANT AUTHORITY Kenneth N. Pots has full authority to bind Kenneth N. Potts, P.A. to a contract or Letter of Agreement. in u Proudly Serving Orono, Minnetonka Beach, Spring Park and Mound Dedicated to Fairness, Service, Pride and Quality April 22, 2016 To Whom It May Concern: I am pleased to write this letter of recommendation for Ken Potts. I have worked with Ken at the City of Orono (Police Department) for more than 14 years as the Criminal Prosecutor. Ken is a resourceful and solution -oriented person who actively pursues and successfully prosecutes criminal cases for City of Orono. In closing, I support Ken Potts for the Orono Criminal Prosecutor and I feel confident he would be an asset to our organization. Please do not hesitate to contact me if you should have any further questions. I can be reached at 952.249.4700 or by email at cfarniokOci.orono.mn.us. Sincer ly, Correy Fa niok Police Chief Orono Police Department Mailing Address: 2730 Kelley Parkway • Orono, MN 55356 Police 911 • Administration 952-249-4700 • Non -Emergency 952-258-5321 • Fax 952-476-3028 Website: http://www.ci.orono.mn.us/police SOUTH LAKE MINNETONKA Mike Meehan ' POLICE DEPARTMENT Chief of Police z24150 SMITHTOWN ROAD Office (952) 474-3261 rO � SHOREWOOD, MN 55331-8598 Fax (952-474-4477 3lTN April 27 h, 209 6 To Whom it May Concern: It is my understanding that the Orono City Council is seeking recommendations on continuing their prosecutorial services with Attorney Ken Potts. I offer this letter of reference in support of Attorney Kenneth Potts continuing to provide these services for your city. have been a full-time police officer with the South Lake Minnetonka Police Department since 1986. For almost my entire career, Attorney Potts has been performing prosecutorial services for three of the four cities served by the South Lake Minnetonka Police Department (SLMPD), He also serves as general legal counsel for the SLMPD and has performed admirably in both roles. He offers an exceptional value both in terms of cost and his incredible knowledge of the criminal court system in Hennepin County. l would be hard-pressed to think of anyone better qualified to serve in this capacity. Please give me a call if I can be of any further assistance in this matter. Sincerely, _* -, �- -7 2,&,�� Steve Neururer Lieutenant Serving the South Lake Communities of Excelsior, Greenwood, Shorewood and Tonka Bay Ge MINNESOTA LAWYERS MUTUAL INSURANCE COMPANY DECLARATIONS Policy Number 281179 333 South Seventh Street, Suite 22M Minneapolis, MN 55412 (612) 341-4530 (800) 422-1370 fax(800)305-1510 LAWYERS PROFESSIONAL LTABILXrY POLICY (THIS IS A CLAIMS -MADE POLICY — READ CAREFULLY) .Y) Item 1. Named Insured: Kenneth N. Potts, PA Office Address: 5101 Thimsen Ave Ste 200 Minnetonka, MN 55345 Item 2. Policy Period: 1/2/2016 to 1/212017 (the Effective Date) (the Expiration Date) 12:01 A. M., standard time at the address of the Named Insured stated herein Item 3. Limits of Liability: $500,000.00 Per Claim $1,500,000.00 Aggregate Item 4. Deductible Amount: $5,000.00 Per Claim Item 5. Total Number of Lawyers: 1 Total Premium: $2,490.00 Item 6. Applicable Forms and Endorsements: MLM-019 (11-13) Prior Acts Retroactive Bate, MLM-032 (11-13) Minnesota Changes, MLM-2000 (11-13) Policy Form In witness whereof, Minnesota Lawyers Mutual Insurance Company has caused this policy to be signed by its President and Secretary and countersigned by a duly authorized agent ofthe ConVany. M WME SOTA LAWYERS MUI~UAL INSURANCECOMPANY I -AD Id-7zho'V P"4"- r '/' /" / John J. Bowden, Secretary Kristina 8imuns, Authorized Agent Paul M. Ablan, president MLM-34 (05-94) DAVID H.GREGERSON• RICHARD F. ROSOW+ MARK 1. JOHNSON•t JOSEPH A. NILAN•t DANIEL R. GREGERSON' JOSHUA A. DOROTHYt SARAH E. SCHWARZHOFF DANIEL A. ELLERBROCK# JENNIFER M. SPALDING T. JAMES POWER MARGARET L. EVAVOLD• JACOB T. MERKEL GREGERSON, ROSOW, JOHNSON & NILAN, LTD. ATTORNEYS AT LAW 100 WASHINGTON AVENUE SOUTH SUITE 1550 MINNEAPOLIS, MINNESOTA 55401 TELEPHONE: (612) 338-0755 FAX: (612) 349-6718 W W W.GRJN.COM April 28, 2016 City of Orono Ms. Jessica Loftus, City Administrator 2750 Kelley Parkway Orono, MN 55356 RE: Request for Proposal for Prosecuting Attorney Services Dear Ms. Loftus: ROBERT]. LANG (1922-2012) ROGER A. PAULY (RETIRED) #Also admitted in Illinois -Also admitted in Wisconsin {Also admitted in North Dakota +MSBA Board Cenified Real Property Specialist Writer's Direct Dial: 612-436-7465 Writer's E-mail: jspalding@grjn.com HAND DELIVERED Pursuant to the City of Orono's March 29, 2016, Request for Proposal for prosecution legal services, Gregerson, Rosow, Johnson & Nilan is pleased to submit ten (10) copies of its Proposal for Prosecution Services along with one digital version on a CD. Thank you for your consideration of this proposal. If you have any questions or comments, please feel free to call. Very truly yours, GREGERSON, ROSOW, JOHNSON & NILAN, LTD. Q J fifer M. S ding JMS/jj Enclosure GREGERSON ROSOW JOHNSON & NILAN PROPOSAL FOR PROSECUTION SERVICES FOR THE CITY OF ORONO APRIL 29, 2016 Jennifer M. Spalding GREGERSON, ROSOW, JOHNSON & NILAN, LTD. 100 Washington Avenue South Suite 1550 Minneapolis, MN 55401 Telephone: (612) 436-7465 Facsimile: (612) 349-6718 jspalding@grjn.com TABLE OF CONTENTS TitlePage ...................... ................................................ .......................................................... ,........ I Tableof Contents..... .......................................... ..... ..... ............ ..........................................2 -3 A. FIRM OVERVIEW.............................................................................................................4 i. Firm Background.....................................................................................................4 2. Services Available ....... .,............................................................................. ............. 4 3. Current Technology................................................................................................. 5 4. Statement of 2015 Billings....,.....................................,........................................... 5 5. Statements of Malpractice.......................................................................................5 6. Pending Actions....................................................................................................... 5 B. IDENTIFICATION AND QUALIFICATIONS OF ASSIGNED PERSONNEL .............. 5 1. Lead Attorney ................. -.......................... .............................................. ............ 5-6 2. Assistant Prosecutor and Staff Providing Prosecution Services ..............................6 3. Organizational Chart ................................................................................................6 4. Commitment of Staff...............................................................................................6 C. RELATED EXPERIENCE..................................................................................................7 1. Experience...............................................................................................................7 2. Demonstrated Ability to Deliver Work on Time and Within Budget...... ............... 7 3. Communities Currently Being Served.....................................................................7 D. SCOPE OF SERVICES .................... ........................ ................... ..................................... 7-8 E. COMPENSATION SCHEDULE.........................................................,...........,..........,.......8 F. REFERENCES, PAST CLAIMS, POTENTIAL CONFLICTS, DISCLOSURES, INSURANCE......................................... .............. --- ............ .................................. . ...... 8-9 1. References............................................................................................................8-9 2 2. Representation of Municipalities In or Contiguous to Orono ................................. 9 3. Potential Conflicts of Interest..................................................................................9 4. Personal or Professional Relationships.................................................................... 9 5. Statement of Malpractice Claims and/or Ethics Complaints...................................9 6, Applicant Authority................................................................................................. 9 7. Certificate of Professional Liability Insurance........................................................ 9 G. ATTACHMENTS 1. Resume of Jennifer M. Spalding......................................................... Attachment 1 3. Resume of Richard F. Rosow.............................................................. Attachment 2 4. Resume of Joseph A. Nilan................................................................. Attachment 3 5. Resume of Margaret L. Evavold.......................................................... Attachment 4 6. Resume of T. James Power................................................................. Attachment 5 7. Certificate of Professional Liability Insurance .................................... Attachment 6 C A. FIRM OVERVIEW. 1. Firm Background. Gregerson, Rosow, Johnson & Nilan, Ltd. dates its inception back to the mid-1950s, when Robert Lang formed a partnership with Daniel Fiedt. Roger Pauly joined them in 1961, and upon Mr. Fiedts retirement, the firm was renamed Lang and Pauly. In 1978, the firm was renamed Lang, Pauly & Gregerson, Ltd. The firm's name was changed in 1996 to Lang, Pauly, Gregerson & Rosow, Ltd., and to its current designation in April, 2002. Gregerson, Rosow, Johnson & Nilan, Ltd. is dedicated to providing the highest quality legal representation while recognizing the need for a practical, cost-effective approach to litigation as well. Our objective is to be large enough to meet the diverse needs of our individual, business, insurance, and municipal clients, yet small enough to provide practical solutions tailored to the specific needs and goals of our clients in a timely and efficient manner. Firm attorneys stress a balance of aggressive representation with a recognition of the bottom line. Toward that end, we routinely settle legal disputes by means other than traditional litigation, including non-binding mediation, binding arbitration, and early neutral evaluation proceedings. When early resolution is not feasible or contrary to the interests of our clients, we are prepared to aggressively litigate cases through trial and appeal. We understand the business world and offer practical solutions to our clients by applying the right combination of creativity, innovation, and commitment. We also strive to spot legal predicaments before they arise, and work with our clients to avoid litigation whenever possible. 2. Services Available. The Law Offices of Gregerson, Rosow, Johnson & Nilan, Ltd. provide sound legal advice and representation to individual, business, insurance, and municipal clients throughout the State of Minnesota in a wide variety of areas, including: • Business Planning and Practice • Business and Commercial Litigation • Commercial and Residential Real Estate • Construction Law • Creditors Rights, Insolvency, and Bankruptcy • Employment Law Counseling • Employment Law Litigation • Environmental Law • Estate Planning • Estate, Probate, and Trust Administration • Fidelity and Surety • Insurance Law • Litigation and Appeals • Mediation and Arbitration • Municipal Law 2 3. Current 'rechnolo The firm maintains a state of the art computer network integrated with internet technology. The firm routinely utilizes email and voicemail systems, as well as web -based legal systems, when providing services to its clients. All attorneys and support staff have access to current computer resources which are effective tools in providing our clients efficient service. The law firm subscribes to WestLaw through which a multitude of legal issues can be researched electronically. The firm maintains its own onsite library consisting of both state and federal statutes, case reporters, State and Federal based law treatises and specific treatises in the area of municipal law; Minnesota Rules of Court; Federal Rules of Court; McQuillin Law of Municipal; Minnesota Civil Practice Series; West Legal Forms; Anderson UCC; UCC Pleading and Practice Forms; Bankruptcy Code Rules and Forms; Martindale Hubbell; and many miscellaneous publications. Further, the firm is located near the Hennepin County Government Center which contains an extensive law library. 4. Statement of 2015 Billings. In 2015, Gregerson, Rosow, Johnson, & Nilan billed a total of 20,155 hours. Of that number, 2,260 hours were billed for prosecution related services. This number is 11 % of the total billings for 2015. Statements of Malpractice. None. 6. Pendine Actions. None. B. IDENTIFICATION AND QUALIFICATIONS OF ASSIGNED PERSONNEL. Lead Attorney Jennifer Spalding will serve as the lead prosecutor. Jennifer Spalding is currently the lead prosecutor for the City of Eden Prairie. She has held the position since January 2013. Jennifer is responsible for reviewing police reports and making charging decisions, drafting complaints, responding to motions, and reviewing and responding to petitions for expungements. Jennifer appears in court weekly for arraignments, pretrial hearings, settlement conferences, Rasmussen hearings, and court trials. Jennifer has tried petty misdemeanor, misdemeanor and gross misdemeanor cases as the lead prosecutor for the City of Eden Prairie and adult felony cases while at the Ramsey County Attorney's Office. As the lead prosecutor for Eden Prairie, Jennifer is the primary contact for both police officers and administration. Jennifer provides the department with case law updates and annual training and participates in monthly supervisory meetings. In 2014, Jennifer received a 98% satisfaction rating from Eden Prairie police officers. Jennifer has criminal appellate experience. She recently won a favorable outcome at the Court of Appeals following oral arguments in a DWI case. Jennifer is a member of the Suburban Hennepin County Prosecutor's Association. Prior to holding the position of lead prosecutor, Jennifer served as the assistant prosecutor for the City of Eden Prairie from July 2007 to December 2009. 2. Assistant Prosecutor and Staff Providing. Prosecution Services If awarded the contract, we would seek another experienced and qualified prosecutor to provide the day-to-day services to Orono. We would invite the City to participate in our selection process including interviews and a final selection decision. This is the process we utilized when awarded the Eden Prairie contract in 2012 and it was very successful. While the individual will be our employee, this will assure that the City is satisfied with the credentials, experience, communication skills and other personal qualities of the prosecutor that will provide day-to-day services. We will also provide backup to the lead prosecutor and assistant prosecutor from other attorneys currently part of the firm. For that reason, we have attached the resume of each attorney who we believe may possibly provide any prosecution service. The firm has two paralegals that support the firm's prosecution department. Vicki Hansen is the primary Paralegal for the prosecution department of the firm. Ms. Hansen graduated from Minnesota School of Business with a Legal Secretarial Certificate and from the Minnesota Paralegal Institute with a Paralegal Degree. Ms. Hansen has over 15 years of Legal Assistant and Paralegal experience. She coordinates records requests, witness and officer scheduling, and also provides clerical support to the prosecutors. Heather Beyer is the secondary Paralegal for the prosecution department of the firm. Ms. Beyer graduated from the Minnesota School of Business with an Associate Degree in Applied Science as a Legal Secretary and as a Paralegal. Ms. Beyer has almost 20 years of Legal Assistant and Paralegal experience. She assists with records requests, preparing files for Court, and also provides clerical support to the prosecutors as needed. 3. Organizational Chart. Jennifer will serve as the lead prosecutor. Jennifer will be the primary contact for the police department administrative staff. Jennifer will make the charging decisions and be responsible for the administration of the Orono contract. The assistant prosecutor we anticipate hiring will handle the day-to-day prosecution services. Vicki Hansen will serve as the primary paralegal and Heather Beyer will provide back-up paralegal services in Ms. Hansen's absence. 4. Commitment of Staff. Gregerson, Rosow, Johnson & Nilan is committed to providing the above-mentioned attorneys and staff as outlined above. C C. RELATED EXPERIENCE. 1. Experience Gregerson, Rosow, Johnson & Nilan, Ltd. has represented municipal governments since 1978, beginning with our representation of the City of Eden Prairie. We served as the prosecutor for the City of Eden Prairie from 1978 to 2009 and again from 2013 to the present. We have been City Attorney for Eden Prairie since 1978. Since 1986, we have represented both Southwest Transit and the City of Delano. We have represented the City of Savage since 2004. We have been City Attorney for Prior Lake since June, 2012. We also represent the Housing and Redevelopment Authority in and for the City of Eden Prairie, the Delano Economic Development Authority, Savage Economic Development Authority, Fire Relief Associations for both Eden Prairie and Delano, the Delano Water, Light, and Power Commission, the Pine River Area Sanitary District, and the Excelsior Fire District. In our representation of these entities, we provide municipal legal services on an everyday basis. Eden Prairie cases have been heard at the Ridgedale Courthouse since the mid-to-late 1990s. Therefore, the firm has extensive experience with the Ridgedale Court System. Additionally, Jennifer has excellent working relationships with court staff, probation, and the Ridgedale judges. 2. Demonstrated Ability to Deliver Work on Time and Within Budget Gregerson, Rosow, Johnson & Nilan, Ltd. is dedicated to providing quality work in a timely matter and within budget. With experienced attorneys available 24 -hours a day through cellular phones, email, and state of the art technology, we have demonstrated our ability to achieve these goals with our current municipal clients. 3. Communities Currently Being Served. See #1 above. D. SCOPE OF SERVICES. The firm is capable of providing a full spectrum of legal services relating to city government. Based on our long history of representing municipalities in both criminal and civil capacities, we are able to provide day-to-day prosecution services, and training for police department personnel in a wide variety of law enforcement areas. Our expertise in the area of prosecution will benefit the City by providing a high level of service and representation in the court system. Police officers, victims of crime, and citizens of the City of Orono have the right to expect and will receive an exceptional level of service from our prosecutors who will ensure that public safety concerns receive the highest priority. The firm is also able to coordinate our efforts in the courtroom with training for law enforcement as to new developments in the law, best practices in the area of case preparation and testimony and any other areas the City wishes to pursue. Additionally, our long history of representation of municipalities ensures that we are able 7 to provide advice to City staff on issues such as code enforcement and nuisance abatement with, as always, an eye to enhancing the public safety of the community. All services listed in Section V - Scope of Work are services the firm currently provides for the City of Eden Prairie and other municipal clients. E. COMPENSATION SCHEDULE. Gregerson, Rosow, Johnson & Nilan, Ltd. proposes hourly billing in .25 increments at the following rates: Attorneys $125.00 per hour Paralegals $70.00 per hour After six months of providing services, we would be willing to negotiate a monthly retainer for all criminal prosecution services. forfeitures and Appeals Gregerson, Rosow, Johnson & Nilan will bill at the same rates as prosecution legal services. ExRenses The firm's expense reimbursement processes operate on an actual expense basis. Actual expenses incurred as a necessary part of the client's representation will be billed to the client, with a clear and specific explanation of that expense. Those expenses include copies, postage, long distance phone calls, facsimiles, Westlaw legal research, printing of appellate briefs, and some delivery services. F. REFERENCES, PAST CLAIMS, POTENTIAL CONFLICTS, DISCLOSURES, INSURANCE. 1. References City of Eden Prairie: Rick Getschow City Manager 8080 Mitchell Road Eden Prairie, MN 55344 Phone: (612) 949-8410 8 City of Prior Lake: Frank Boyles City Manager 4646 Dakota Street SE Prior Lake, MN 55372 (952) 447-9800 Southwest Transit: Mr. Len Simich CEO 13500 Technology Drive Eden Prairie, MN 55344 Phone: (952) 974-3107 City of Delano: Phil Kern Administrator 234 Second Avenue North PO Box 108 Delano, MN 55328 Phone: (763) 972-0565 City of Savage: Barry Stock City Administrator 6000 McColl Drive Savage, MN 55378 Phone: (952) 882-2646 2. Representation of Municipalities In or Contiguous to Orono. None. 3. Potential Conflicts of Interest. None. Any conflicts which may arise with respect to particular defendants are immediately transferred to other experienced prosecutors, who assume representation as Special Assistant City Attorney for the City of Orono. 4. Personal or Professional Relationships. None. 5. itateineiit of Malpractice Claims and/or Ethics Complaints. See #5 under section A. 6. Applicant Authority. Jennifer Spalding has the authority to make the representations contained in this proposal. 7. Certiticale of Professional Liability Insurance. Attached. 6 Submitted by, GREGERSON, ROSOW, JOHNSON & NILAN, LTD. B — r sir"'" � � ✓� !r ennifer NVSpalding 10 ATTACHMENTS Resume of Jennifer M. Spalding Resume of Richard L. Rosow Resume of Joseph A. Nilan Resume of Margaret L. Evavold Resume of T. James Power Certificate of Professional Liability Insurance 11 JENNIFER M. SPALDING 100 Washington Avenue South Suite 1550 Minneapolis, Minnesota 55401 Telephone: (612) 436-7465 Facsimile: (612) 349-6718 Education: William Mitchell College of Law (J.D. January 2003); University of St. Thomas (B.A. May 1996). Professional: State Bar of Minnesota, 2003; Federal Court, 2005; U.S. Supreme Court, 2016 Experience: Gregerson, Rosow, Johnson & Nilan, Ltd., Minneapolis, Minnesota Associate Attorney, December 2012 to present Lead Prosecutor for the City of Eden Prairie. Review police reports and making charging decisions. Draft complaints. Represent the City of Eden Prairie in court at all stages of criminal proceedings including appellate proceedings. Provide training to the Eden Prairie Police Department. Gregerson, Rosow, Johnson & Nilan, Ltd., Minneapolis, Minnesota Associate Attorney, July 2007 to December 2009 Assistant Prosecutor for the City of Eden Prairie. Reviewed police reports and made charging decisions. Drafted complaints. Represented the City of Eden Prairie in court at all stages of criminal proceedings including appellate proceedings. Represented the City of Eden Prairie in civil proceedings related to DWI vehicle forfeitures. Goetz & Eckland P.A., Minneapolis, Minnesota Associate, October 2004 to March 2007 Practice consisted of criminal defense work and insurance defense work. Represented individuals accused of criminal offenses at all stages of the proceedings. Defended insurance companies and their insureds in a variety of civil matters including construction defect, automobile, and personal injury cases. Prepared for and represented individuals at no-fault arbitration hearings. Participated in mediations, conducted and defendant depositions, drafted and responded to discovery and motions. Ramsey County Attorney's Office, Minneapolis, Minnesota Prosecutor — Adult Prosecution Division, April 2004 to September 2004 Six-month contract position. Appeared on behalf of the State at all stages of felony -level criminal proceedings including Rasmussen hearings, dispositional conferences, and sentencings. Prepared for and conduct jury trials. Negotiated settlements. Prepared briefs, pleadings and motions. 12 RICHARD F. ROSOW 100 Washington Avenue South Suite 1550 Minneapolis, MN 55401 Telephone: (612) 436-7477 Facsimile: (612) 349-6718 rrosowna grin.Calil MSBA B 0, A] D Shareholder and President, Minneapolis law firm of Gregerson, Rosow, Johnson & Nilan, Ltd., focuses his practice in the areas of municipal law, real estate, transportation, employment, mediation, arbitration and environmental law. I have over 38 years of experience representing local units of government. I have represented the City of Eden Prairie since 1978, the City of Savage since 2004 and more recently the City of Prior Lake since 2012. In the real estate area my experience includes representing both buyers and sellers in numerous commercial and industrial real estate transactions, representing cities and private parties in the development of property for residential, commercial and industrial purposes, and the mediation and arbitration of real estate disputes. In the employment area my experience includes representing and advising private and public sector employers on a wide array of personnel and employments issues including hiring, discipline and termination, as well as handling employment related disputes, including claims of discrimination. I am a certified real property specialist certified by the Real Property Section, Minnesota State Bar Association. In addition I am a Qualified Neutral on Minnesota Supreme Court Neutral Roster. Professional: Admitted to bar: 1976, Minnesota; 1977, Michigan; 1978, U.S. District Court, District of Minnesota. Past Chair, Minnesota State Bar Association Environmental and Natural Resource Section; Past Chair, Minnesota State Bar Association ADR Section. Past Treasurer, Minnesota Chapter of the Society of Professionals -in Dispute Resolution. Member American Bar Association: State and Local Government Law; Environment, Energy and Resources; Public Utility, Commission and Transaction; and Real Property, Trust and Estate Law. Member Minnesota State Bar Association: Public Law and Real Property; Alternative Dispute Resolution; Environmental and Natural Resources. 13 Primary Municipal Clients: City of Eden Prairie City of Savage City of Prior Lake SouthWest Transit Commission Lecturer: "Basics in Environmental Law," Minnesota State Bar Association, April 2005; "Moderator: Legal Foundations for Community Growth and Change, 2000; and ADR Practice Management, 2000. "Environmental Issues in Property Development," National Business Institute, 1994. "Practical Strategies and Tactics in Major Permit Cases," Hennepin County Bar Association, 1991; "Environmental Law in the 1990's," Minnesota State Bar Association, 1990; Professional Organizations: Officer, Minnesota City Attorney Association; Board Member, League of Minnesota Cities' Amicus Board; Past Chair, Minnesota State Bar Association Environmental and Natural Resource Section; Past Chair, Minnesota State Bar Association ADR Section. Past Treasurer, Minnesota Chapter of the Society of Professionals in Dispute Resolution. Professional Memberships: Hennepin County, Minnesota and American Bar Associations. Education: Admitted to bar, 1976, Minnesota; 1977, Michigan; 1978, U.S. District Court, District of Minnesota. University of Minnesota (B.A., 1969); College of St. Thomas (M.A., 1971); University of North Dakota (J.D., with distinction, 1976). Phi Delta Phi; Order of the Coif. Reported Cases: United Fire & Cas. Co. v. Fidelity Title Ins. Co., 258 F.3d 714, C.A.8 (Minn.), 2001; Preserve Ass'n v. City of Eden Prairie, 421 N.W.2d 419, (Minn. App., Apr. 5, 1988); Benchmark Crafters, Inc. v. Northwestern Nat. Ins. Co. of Milwaukee, 363 N.W.2d 89 (Minn. App. 1985); St. Paul Fire and Marine Ins. Co. v. Steeple Jac, Inc., 352 N.W.2d 107 (Minn. App., July 31, 1984). 14 JOSEPH A. NILAN 100 Washington Avenue South Suite 1550 Minneapolis, MN 55401 Telephone: (612) 436-7470 Facsimile: (612) 349-6718 jnilan(irigrjn.rom Joseph Nilan is a Shareholder with Gregerson, Rosow, Johnson & Nilan, Ltd. Mr. Nilan's practice is predominantly in the litigation area including civil litigation, commercial litigation and appellate advocacy. Mr. Nilan has extensive experience in insurance related matters, including financial institution bonds, liquor liability, property and casualty, professional liability, director and officer liability, fidelity policies and coverage disputes. In addition, Mr. Nilan has considerable experience in representing small businesses. Mr. Nilan has been named as a "Super Lawyer" and is AV rated by Martindale Hubbell. Education: B.A., St. John's University, summa cum laude, 1977; J.D., University of Minnesota, cum laude, 1980 Professional: Admitted to the Minnesota State Bar Association, 1980; Hennepin County Bar Association, 1980; Federal Bar Association, 1980; U.S. District Court, District of Minnesota, 1980; American Bar Association, 1981; U.S. Court of Appeals, 81h Circuit, 1989; U.S. Supreme Court, 1992; Wisconsin State Bar, 1995; U.S. Tax Court, 1995; U.S. District Court, Western District of Wisconsin, 1998; U.S. Court of Appeals, 7th Circuit 2004; U.S. Court of Appeals, 6th Circuit, 2005; North Dakota State Bar, 2006; U.S. District Court, District of North Dakota, 2006; U.S. District Court, District of Montana, 2008; U.S. Court of Appeals, 9th Circuit, 2010; U.S. District Court, Eastern District of Wisconsin, 2010 Experience: Gregerson, Rosow, Johnson & Nilan, Ltd.'— Minneapolis, Minnesota Shareholder, 1988 to present Associate, 1982-1988 Marker & Associates — Minneapolis, Minnesota Associate 1980-1982 15 MARGARET L. EVAVOLD 100Washington Avenue South Suite 1550 Minneapolis, MN 55401 Telephone: (612) 436-7463 Facsimile: (612) 349-6718 mevavold(i mon.com Education: William Mitchell College of Law (J.D., 2009); Arizona State University (B.A., 2005). Professional: Admitted to bar, 2009, Minnesota; 2013, U.S. District Court for the District of Minnesota. Experience: Gregerson, Rosow, Johnson & Nilan, Minneapolis, Minnesota Associate, 2013 to present. Represents municipalities, businesses, and individuals in contract and construction disputes, fidelity and surety law matters, and other civil litigation; assists municipalities, businesses, and individuals with transactions; advises municipalities, businesses, and individuals regarding state and federal law. For municipalities, provides assistance in the areas of employment, real estate, contracts, criminal prosecution, and state and federal statutory interpretation and analysis. Other Experience: Minnesota Court of Appeals - 2012 to 2013. Judicial Law Clerk, Judge Margaret H. Chutich Stearns County District Court, St. Cloud, MN - 2010 to 2012. Judicial Law Clerk, Judges John Scherer and Frederick Grunke 16 T. JAMES POWER 100 Washington Avenue South Suite 1550 Minneapolis, MN 55401 Telephone: (612) 436-7462 Facsimile: (612) 349-6718 j po�ver�ri_lg�n.com Education: University of St. Thomas School of Law (J.D., summa cum laude, 2012); University of Wisconsin -Madison (B.A., with distinction, 2007). Professional: Admitted to bar, Minnesota, 2012; U.S. District Court for the District of Minnesota, 2013; U.S. Court of Appeals, 8th Circuit, 2014. Experience: Gregerson,Rosow, Johnson & Nilan, Minneapolis, Minnesota Associate Attorney, September 2013 to Present. Litigated insurance coverage, commercial, contract, and tort actions in federal and state court. Drafted appeals to the United States Court of Appeals for the Eighth Circuit. Advises municipalities on compliance with federal and state laws. Provides assistance as with criminal prosecution and has successfully prosecuted criminal court trials. Minnesota Court of Appeals, St. Paul, Minnesota Judicial Law Clerk to the Hon. Louise Dovre Bjorkman, August 2012 to August 2013 Reviewed and analyzed appeals, prepared bench memoranda for a panel of three appellate judges, and drafted legal opinions. Xcel Energy, Minneapolis, Minnesota Law Clerk, May 2011 to June 2012 Researched legal issues that affect publically regulated utilities. Drafted memorandum examining issues in tort, data privacy, and corporate law. Lockridge Grindal Nauen, Minneapolis, Minnesota Summer Associate, June 2010 to August 2010 Researched and drafted memoranda analyzing issues in antitrust and tort law. Drafted motions to compel and intervene in federal and state court. Other Experience: University of St. Thomas, Minneapolis, Minnesota Adjunct Professor, September 2012 to December 2012 Liceo Del Valle, Guadalajara, Mexico English and Entrepreneurship Professor, August 2008 to July 2009 Publications: Tearing Down a House of Coupons: CAFA's Effect on Class Action Settlements, 9 U. St. Thomas L.J. 906 (2012). Co -Author, Liability on the Horizon, MSBA ENRE Law News, Summer 2010, at 3. 17 H Ow anover �115UxdTiCE C;xoup� Hanover Professionals DECLARATIONS Advantage Portfolio THIS IS A CLAIMS -MADE POLICY. PLEASE READ THE POLICY CAREFULLY. LAWYERS PROFESSIONAL LIABILITY POLICY Policy Number Coverage is provided by: _ Agency Agency Code LHX 9600433 03 HANOVER INSURANCE COMPANY MARSH & MCLENNAN 2509766 AGENCY Issue Date: 06/24/2015 Change Description: Renewal Item 1. Named Insured and Address: GREGERSON, ROSOW, JOHNSON & NILAN, LTD 100 WASHINGTON AVE SOUTH STE 1550 MINNEAPOLIS, MN 55401 Item 2. Policy Period: Inception Date: 06/29/2015 Expiration Date: 06/29/2016 Endorsement Effective Date: 12:01 A.M. Standard Time at the address of the named insured as stated herein. Item 3. LIMIT OF LIABILITY: a. $5,000,000 for each claim; not to exceed b. $5,000,000 for all claims in the Aggregate Item 4. DEDUCTIBLE: $25,000 each claim N/A Aggregate Item 5. RETROACTIVE DATE: Full Prior Acts Item 6. PREMIUM FOR THE POLICY PERIOD: Policy Coverage Premium: $23,536.00 Revised Annual Premium: N/A Additional/Return Premium: N/A Total Amount: $23,536.00 Item 8. Forms attached at Issue: 401-1268 (08-12) U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") Advisory Notice to Policyholders 910-0105 (11-09) Notice Concerning Policyholder Rights in an Insolvency Under the MN Insurance Guaranty Assoc Law 913-0001 (07-10) Lawyers Professional Liability Policy 913-0036 (07-10) Crisis Event Defense Coverage Endorsement 913-0039 (07-10) Disciplinary Complaint Defense Sublimit Endorsement 913-0040 (07-10) Employment Practices Liability Defense Sublimit Endorsement 913-0048 (03-14) First Dollar Defense With No Sublimit Endorsement 913-0054 (07-10) Network or Information Security Breach Variable Supplementary Payment Endorsement 913-0056MN (07-10) MN Punitive Damages Endorsement 913-0091 (03-11) Claim Reporting Guidelines 913-0095 (07-10) ERP Policy Holder Notice 913-0002 07 10 Page 1 of 2 913-0113 (03-13) Minnesota LPL State Amendatory Endorsement SIG -1100 (08-14) Signature Page Item 9. Forms attached by Endorsement: Item 10. Producer Name and Address: MARSH & MCLENNAN AGENCY 7225 NORTHLAND DR NORTH MINNEAPOLIS MN 55428 913-0002 07 10 Page 2 of 2 TALLEN and BAERTSCHI Attorneys at Law 920 Second Avenue South Suite 1540 MINNEAPOLIS, MN 55402-2224 STEVEN M.TALLEN FACSIMILE (612) 349-3995 TELEPHONE (612) 349-3900 April 20, 2016 Ms. Jessica Loftus Orono City Administrator P.O. Box 66 Crystal Bay, MN 55323 Re: Proposal for Prosecution Services Dear Ms. Loftus: PAUL D. BAERTSCHI Thank you for inviting me to submit a proposal to provide prosecution legal services to the City of Orono. Enclosed is my proposal. I also want to address items that I believe will be relevant to the City in determining whether or not you wish to engage our services. Tallen & Baertschi is a small law firm devoted primarily to providing prosecution services to our municipal clients. Both Paul Baertschi and I started as prosecuting attorneys with the LeFevere, Lefler, Kennedy, O'Brien and Drawz firm. I joined the firm in 1985 and Paul joined in 1987. As you may know, the LeFevere firm went out of business in 1989. Most of the municipal lawyers, including Paul and myself, moved to Holmes & Graven, where we continued representing the same group of municipalities. In 1993, Paul and I teamed up to form Tallen & Baertschi. Since that time, we have been actively engaged in contract municipal prosecution for our Hennepin County clients. Our billings can fluctuate from year to year, as most of our clients engage our services on an hourly basis, but our billings for the year 2015 were just under $500,000 for municipal prosecution services. Approximately half of that total was for the City of Maple Grove. That amount constitutes about 85% of our total billings. There have been no ethics complaints against either Paul or myself during the time that we have prosecuted. I was recently sued in federal court as a result of prosecuting a person for operating a Segway while under the influence of alcohol. That lawsuit was dismissed by the United States District Court and that dismissal was affirmed by the 8th Circuit Court of Appeals. There are currently no pending charges or allegations against either Paul or myself for any misconduct. Neither Paul nor myself have any personal or professional relationship with the any city council member, or any member of the community. I do know the Mayor, Ms. McMillan, by virtue of her service as a member of the Board of the Lake Minnetonka Conservation District, which I have represented since 1986. We do not have a personal relationship, but we would recognize each other in a crowd. The request for proposals requires a copy of our certificate of professional liability insurance in a minimum amount of $1,000,000. Given that as prosecuting attorneys, we are essentially immune from suit, we do have professional liability insurance, but it is written with a $300,000 limit. If our proposal is accepted by the City, we will obtain a policy with the required $1,000,000 limits. Our office does a substantial amount of prosecution work for cities in western and northwestern Hennepin County whose cases are heard at the Division 3 (Ridgedale) Courthouse. As a result of the large number of clients we have at Ridgedale, we can offer our services at a very competitive price because of the volume of business we do. We are professional prosecutors who take pride in a job well done. We try to never lose sight of the fact that as prosecutors our job is "to do justice" not just to obtain convictions. In the 30 years that I have been serving the residents of Hennepin County as a prosecuting attorney, I believe I have in large part been able to accomplish the goal of achieving justice. At the same time, we are mindful that the criminal justice system is an expensive operation, and we try whenever possible to pass as much of the cost of doing business onto the defendants as possible. Obviously, this is not our main goal, but we try never to lose sight of the fact the tax payers are paying us to do their business, and, when possible, it is not inappropriate to try to pass some of the cost of doing business onto defendants who can afford to pick up that cost. I look forward to discussing our proposal with you and the selection committee in the future. Sincerely, Steven M. Tallen SMT/mw Enclosures The Law Office of Tallen and Baertschi offers this proposal to provide prosecution services to the City of Orono. Questions concerning this proposal can be directed to Steven Tallen at 612-349-3900. 1. Firm Profile a. Resumes attached. b. Special areas of expertise. Steve Tallen has been a prosecuting attorney since 1985 and serves at the Chief Prosecutor for the Cities of Maple Grove, Medina, Loretto, Deephaven, Woodland and the Lake Minnetonka Conservation District. Steve also serves as the Assistant Prosecutor for the Cities of Robbinsdale, the Hennepin County portion of the City of Rockford and the City of Osseo. Steve also serves as a Conflict Prosecutor for the Cities of Minnetonka and Hopkins, as well as occasionally serving as Conflict Prosecutor for the Cities of Orono, Plymouth, Golden Valley, Roseville, Apple Valley and North St. Paul. Steve served for ten years as a police officer for the City of Golden Valley and believes that that background has assisted in forming a good working relationship with our municipal clients, including the officers, chiefs and the city councils. Steve is known as an aggressive (hopefully fair) prosecutor with well over 100 jury trials, thousands of court trials and very close to 100 appellate cases. Paul Baertschi has over 28 years of prosecution experience, with expertise in all facets of criminal prosecution, criminal law and appellate cases. Paul serves as the Chief Prosecutor for the Cities of Robbinsdale, Osseo and Rockford (the Hennepin County portion) and as Assistant Prosecutor for our other municipal clients. Like Steve, Paul has extensive jury trial, court trial and appellate experience. Paul is the firm's "legal scholar" and is the Editor and Publisher of MINNESOTA POLICE BRIEFS for over 25 years. Minnesota Police Briefs provides concise updates of criminal law cases that directly affect the day-to-day operation of police departments and provides brief, but essential knowledge of recent appellate cases which affect police procedures. Paul also handles most of the forfeiture matters which arise out of arrests for violations that provide for civil forfeiture in criminal cases. c. Criminal appellate experience. Both Mr. Baertschi and Mr. Tallen have handled numerous appeals to the Court of Appeals and (a few) appeals to the Minnesota Supreme Court. d. Accessibility to city personnel including police. Accessibility would be one of our strengths. We are always available by telephone, either landline or cell phone for 24 hour service as needed. In urgent situations we can usually be reached almost immediately. We return calls the same day. Some clients prefer contact and dialog by email and that is also readily available as we are accustomed to regularly checking and responding to email messages. We prefer to have regular meetings with the Chief and supervisory staff, as well as periodic attendance at roll call. We try to schedule at least annual meetings with our city councils to give a periodic update and answer any questions which may arise concerning the prosecution program. e. Primary Prosecutor. Steve Tallen would be the primary prosecutor and agrees to continue in that role during the life of the contract. The Assistant prosecutor would be Paul Baertschi. Our primary back-up prosecutor will be Anthony Bushnell. Anthony has successfully tried several misdemeanor and gross misdemeanor cases for this office in the past several years and has provided back up services in handling arraignment calendars on occasion. See resume attached. Between the three attorneys, we can assure the City that adequate back up personnel would be available to cover all obligations without straining capacity. If all three lawyers are unavailable for a Court matter, we have a network of experienced prosecutors to draw from to handle matters as needed. We will most often use Wynn Curtiss, the Hopkins Prosecutor, or Alina Schwartz, the Plymouth Prosecutor. f. Leal library and research. We maintain a subscription to West Law, which provides all necessary legal research capabilities. All attorneys are proficient in formulating legal searches to identify changing case law to use in the preparation of memoranda on motions to suppress and other legal issues. In addition, we have familiarity with other online data bases for obtaining statutes, ordinances, attorney general opinions, and of course all appellate opinions. We are competent experienced lawyers. g. Support staff. Marijo Witte has 28 years experience as a prosecution paralegal, starting with the LeFevere firm in 1988. Jeanne Tracy, our other paralegal, was employed by Hennepin County District Court for 25 years before agreeing to join our office in 2004. When Ms. Tracy left the courts, she was the "lead worker" at the Ridgedale Courthouse. Having Ms. Tracy as a member of our team makes dealing with court -related issues much easier. Ms. Tracy knows everyone and what they do! Both Ms. Witte and Ms. Tracy understand "the system" and are blessed with excellent people skills. We are constantly being complimented by our police officers and defense attorneys on the friendliness and competency of our staff. They are nice people and they treat others with respect. They are terrific representatives of our client cities. Our staff will prepare a monthly report to the Police Department of the disposition of cases in a format agreeable to the City. h. General description of services. We anticipate that we can provide a full range of prosecution legal services to the City of Orono, including prosecution of all gross misdemeanor, misdemeanor and petty misdemeanor cases, issuance of criminal complaints for statutory and City code violations, drafting complaints, representing the City at court appearances of all types, including appeals, handling expungement and forfeiture proceedings, preparation of reports, regular training, providing advice to the City Manager and other City officials regarding nuisance 4 abatement and other City code violations. In addition to these and other duties described in the Request for Proposals, we will provide a free monthly subscription to Minnesota Police Briefs, a criminal law news summary service prepared by Mr. Baertschi. This service includes an annual legislative update and summaries of all pertinent criminal law cases that affect police and prosecution matters. Our strengths include experience and professionalism in all aspects of prosecution services based on our knowledge, experience and ongoing commitment to providing quality legal work. i. Firm experience in Municipal Legal Services. The firm Tallen and Baertschi has been engaged principally in prosecution services since 1993 when Mr. Baertschi and Mr. Tallen merged their separate practices that had involved prosecution prior to that point. Mr. Baertschi and Mr. Tallen first practiced together in 1987 when they were essentially full time prosecutors at the firm of LeFevere, Lefler, Kennedy, O'Brien and Drawz, the preeminent municipal law firm in Minnesota at that time. That work continued with a successor firm of Holmes & Graven for two years. Thereafter, Mr. Tallen and Mr. Baertschi continued prosecution services independently until they teamed up again in 1993, forming Tallen & Baertschi. After a competitive search process, Tallen & Baertschi was appointed as the prosecution firm for the City of Maple Grove, currently our largest client. Our office also serves as the prosecuting attorneys for the Cities of Robbinsdale, Medina, Loretto, Deephaven, Woodland, the Lake Minnetonka Conservation District, Osseo and the Hennepin County portion of the City of Rockford. Mr. Tallen also serves as conflict and/or back up prosecutor for the Cities of Minnetonka and Hopkins. Mr. Tallen and Mr. Baertschi are both active in the Suburban Hennepin County Prosecutors Association, a group of suburban prosecutors who have organized in an attempt to speak with one voice on issues of common concern to our prosecution clients. Our work with these prosecution clients includes all aspects of the specified scope of work listed in the Request for Proposals. The following persons may be contacted at the various municipalities and agencies concerning specific activities performed. Chief Eric Werner City of Maple Grove 12800 Arbor Lakes Parkway P.O. Box 1180 Maple Grove, MN 55311 (763) 494-6101 Chief Ed Belland Medina Police Dept. 2052 County Road 24 Medina, MN 55340 (763) 473-9209 91 Chief Jim Franzen Robbinsdale Police Department 4101 Hubbard Ave. No. Robbinsdale, MN 55422 (763) 531-1232 Chief Cory Johnson Deephaven Police Department 20225 Cottagewood Road Deephaven, MN 55331 (952) 474-4564 Sheriff Richard Stanek Hennepin County Room 6 Courthouse 350 South Fifth Street Minneapolis, MN 55416 (612) 348-3740 Mona Dohman Commissioner of Public Safety Bremer Tower, Suite 1000 445 Minnesota Street St. Paul, MN 55101 651-201-7174 i Previous services for Orono: None, other than an occasional conflict prosecution case k. Potential conflicts of interest: None 1. Fees for services. We propose a flat rate charge of $2,650.00 per month, plus actual out-of-pocket expenses. The flat rate fees to would cover all consultations, court appearances, court trials, attendance at meetings and police training. These rates will be fixed for a two year period and then would be opened for negotiation of a cost -of -living adjustment. For forfeiture -related litigation, we will either charge an hourly rate of $135 per hour, or if the City prefers, we will take the statutory amount allocated to the prosecuting authority (currently 20 — 30% of proceeds of the sale of forfeited items, depending on the specific statute which authorized the forfeiture). Dated:" By / Steven M. Tallen Tallen and Baertschi 920 Second Avenue South Suite 1540 Minneapolis, MN 55402-2224 (612) 349-3900 E RESUME OF STEVEN MARK TALLEN Professional Experience 1993 — Present Attorney — Tallen & Baertschi, Minneapolis, Minnesota. Prosecuting Attorney for the Cities of Maple Grove, Medina, Loretto, Deephaven, Woodland, The Lake Minnetonka Conservation District, Robbinsdale, Osseo and the Hennepin County portion of Rockford. 1991-1993 Attorney — Carruthers & Tallen, Minneapolis, Minnesota. Prosecuting Attorney for the Cities of Medina, Loretto, The Lake Minnetonka Conservation District, Deephaven and Woodland. 1986-1991 Attorney — LeFevere, Lefler, Kennedy, O'Brien and Drawz, Minneapolis, Minnesota. Head of Municipal Prosecution Department supervising ten part-time prosecutors providing prosecution services to the Cities of Richfield, Brooklyn Center, Robbinsdale, Plymouth, Medina, Loretto, Independence and The Lake Minnetonka Conservation District. 1975-1985 Police Officer for the City of Golden Valley, Minnesota Education 1975 Bachelor of Arts (History Major), University of Minnesota (Minneapolis) 1981 Juris Doctor, William Mitchell College of Law, St. Paul, Minnesota Publications and Presentations Contributing Author to Minnesota DWI Deskbook Presenter Minnesota CLE Criminal Justice Institute Professional Associations Hennepin County Suburban Prosecutors Association Instructor Minnesota State Judicial Training Program Hennepin County Bar Association District Four Ethics Committee RESUME OF PAUL D. BAERTSCHI 920 Second Ave. S., Suite 1540 Minneapolis, MN 55402 (612) 337-5577, Facsimile (612) 349-3995 Cell (763) 245-3870 www.tallenandbaertschi.com EXPERIENCE: 1991 - Present ATTORNEY Paul@tab-law.com TALLEN & BAERTSCHI (1993 to present); BAERTSCHI & ASSOCIATES (1991 to 1993), Minneapolis, MN. Criminal law practice: Chief prosecuting attorney for the cities of Robbinsdale and Rockford. Prosecutor for Maple Grove, Medina, Deephaven, Loretto, Lake Minnetonka Conservation District and Woodland. Criminal defense including trials and appeals. 1987-1991 ATTORNEY HOLMES & GRAVEN, CHARTERED (1989-1991); LeFEVERE, LEFLER, KENNEDY, O'BRIEN & DRAWZ (1987-1989), Minneapolis, Minnesota. Position with Holmes & Graven practicing in the areas of prosecution, municipal law, litigation and criminal defense. 1985- 1987 ASSISTANT COUNTY ATTORNEY ISANTI COUNTY ATTORNEY'S OFFICE, Cambridge, Minnesota. Senior Assistant County Attorney position handling felony, gross misdemeanor and misdemeanor prosecutions. 1984- 1985 ATTORNEY FREDERICK R. KOPPLIN AND ASSOCIATES, Minneapolis, Minnesota. Position with litigation emphasis including family law, business litigation, criminal defense and appeals. 1981 - 1984 ASSISTANT STATE'S ATTORNEY JACKSON COUNTY STATE'S ATTORNEY'S OFFICE, Murphysboro, Illinois. First Assistant State's Attorney in six attorney office handling criminal prosecution including felonies, misdemeanors and juveniles. 1979-1981 ATTORNEY WEST CENTRAL ILLINOIS LEGAL ASSISTANCE, Galesburg, Illinois. Position practicing poverty law and family law litigation. EDUCATION: Southern Illinois University School of Law, J.D. May, 1979. Bradley University, B.A. Administration of Criminal Justice, December, 1975. Trinit. College, attended 1972 - 1973. ACHIEVEMENTS: Founder and first President of Twin Cities Christian Legal Aid in 2000, current board member and volunteer. Over 80 jury trials and approximately 22 appeals. PRESENTATIONS: Field Sobriety Testing - Presentation regarding Chapter of the Minnesota DWI desk book, 2003 Course chair and presenter: "Recent Trends Involving the Law of Arrest, Search and Seizure", November 2005, sponsored by Lorman Educational Services. Criminal Justice Institute Presentation, August 21, 2006. Judicial Trial Skills Training Program, sponsored by University of Minnesota, September 22, 2006. Criminal Law Basic Training Presentation, Criminal Law Section of the Minnesota State Bar Association, November 1, 2006. Recent Developments in Criminal Law, sponsored by Hennepin County Suburban Prosecutors Association, May 4, 2007. PUBLICATIONS: "Resisting Enhancement: Collateral Attacks on Guilty Pleas", Bench and Bar, November 1988. Co-author of chapter on Field Sobriety Testing in the Minnesota DWI Desk book, Minnesota CLE, 2003 and revised chapter, 2007. Creator and editor of "Minnesota Police Briefs", a monthly subscription - based legal newsletter on criminal law. Subscribers include most major police departments including the State Patrol and private attorneys. VOLUNTEER WORK: Member of MSBA, Council member of Criminal Law Section of MSBA, board member of Twin Cities Christian Legal Aid (www.tccla.org), providing legal assistance through volunteer attorneys to individuals unable to afford an attorney. 2 Anthony William Bushnell 920 2nd Avenue S., Suite 1540, Minneapolis, MN 55402 763-458-7652 — awb@bushnelllawfirm.com EXPERIENCE BAR ADMISSIONS: Minnesota (2005); U.S. District Court for the District of Minnesota (May 2007). The Bushnell Law Firm (Mar. 2007 - Present) Minneapolis and Blaine, MN • Managing attorney for solo law practice in criminal defense, litigation, and appellate practice. 90% of practice devoted to criminal law. • Criminal trial experience (lead attorney) at felony level, gross misdemeanors, and misdemeanors. Completed numerous jury trials to verdict and handled hundreds of hours of prosecution for cities, including jury trials and various court trials. Handled numerous appearances on jury trial calendar for city prosecution, including settling cases, motion hearings, Rasmussen hearings, pre- trial discussions, and trial preparation. Handled nearly 100 arraignment and pre-trial calendars in district court for prosecution in addition to trial calendars. • Litigation experience in many contested hearings, including a three and a half day bench trial in home construction case, winning verdict for plaintiffs twice as high as highest settlement offer. • Briefed and argued cases as lead counsel at the Minnesota Court of Appeals, including winning a case that revised the standard practice for notice of order for protection hearings in Ramsey County (selected as a published decision and one of the Court's "significant cases" of 2008). Adjunct Faculty in Criminal Justice (2013 — Present) University of Northwestern -Saint Paul Instructor and curriculum designer for semester -long Minnesota Criminal and Traffic Code course training law enforcement students on the entire criminal code and traffic and DWI code, as well as victim's rights, data privacy, policing procedures, warrantless vehicle stops and searches, drug laws, etc. EDUCATION University of Minnesota Law School Minneapolis, MN J.D., cum laude, 2005 National Moot Court (2003-2004); Judicial Externship (Fall 2003) Misdemeanor Prosecution Clinic (Fall 2004); Domestic Violence Clinic (Spring 2004) Chess Club (Co-founder and Treasurer 2002-2005); Federalist Society Dean's List 2003, 2004, and 2005 Hamline University Saint Paul, MN B.A., 1998 Major/Minor: Legal Assistance/Philosophy. Received Paralegal Certificate. Hamline University Mock Trial Team, Co -president and Captain. Received six Best Attorney Awards. Professional Affiliations: Minnesota State Bar Association; MSBA Civil Litigation Section; MSBA Solo and Small Firm Section; MSBA Criminal Law Section; Hennepin County Bar Association; Anoka County Bar Association; Christian Legal Society. Service in the Profession and Community: MSBA Solo and Small Firm Section Council (Chairman of section council) Planned and presented numerous CLEs on criminal law, evidence, and motion practice. Anthony Witham Bushnell_ MSBA Criminal Law Section Council — council member Christian Legal Society of Minnesota, board member (2007-2014) Christian Legal Society (national), National Board member and Attorney Ministries Committee Mentor for University of St. Thomas School of Law Mentoring Program (2011-2013) Adjunct Instructor for Practice and Professionalism course, University of Minnesota Law School (2009 to 2010 academic year) Honors: Selected to the 2015 Rising Stars List in criminal law by Minnesota Super Lawyers No more than 2.5% of the attorneys in a state are named to the Rising Stars List. Selected to the 2014 Rising Stars List in criminal law by Minnesota Super Lawyers Recognized as a Top 100 Trial Lawyer by The National Trial Lawyers (2014) Graduate of the First Annual Trial School at the Criminal Justice Institute (Minnesota CLE) Eagle Scout, Boy Scouts of America Wesco Insurance Company 5800 Lombardo Center LAWYERS PROFESSIONAL LIABILITY VA Suite 200 POLICY DECLARATIONS Cleveland, OH 44131 RENEWAL CERTIFICATE THIS IS A CLAIMS- MADE AND REPORTED POLICY. PLEASE READ THE POLICY CAREFULLY. Policy Number: WPP1096450 01 1. Named Insured and Address Tallen & Baertschi, Attorneys at Law 920 Second Avenue South Suite 1540 Minneapolis, MN 55402 4. Limit of Liability (Includes Claim Expenses) $ 100,000 Each Claim $ 300,000 Aggregate 5. Deductible 5,000 Per Claim 6. Premium Renewal of Policy Number: WPP1096450 00 2. Policy Period Effective Date: September 25, 2015 Expiration Date: September 25, 2016 12:01 A.M. Standard Time at the address of the Named Insured as stated herein. 3. Producer Name Alta Professional Insurance Services 14141 Farmington Road Livonia, MI 48154 $ 11352 Number of Lawyers: 2 NOTE: This renewal Policy will be effective only if the premium is paid in full and the application is received by the effective date shown in Item 2 above. The renewal will be subject to the provisions of the forms then current, which, if revised during the previous Policy term, will be substituted at the time of renewal. 7. Forms Attached at Issue Schedule of Forms Attached. WIC -LPL -DEC -02 (051154) Page 1 of 1 NAMEDINSURED SCHEDULE OF FORMS ATTACHED Tallen & Baertschi, Attorneys at Law This endorsement, effective 12:01 September 25, 2015 forms a part of Policy WPP1096450 01 A.M. No. Issued by Wesco Insurance Company. FORMS LISTED BELOW ARE INCLUDED IN THIS POLICY WIC -LPL -DEC -02 RENEWAL CERTIFICATE LPL990005 CEOL ENDORSEMENT LPL990014 FIRST DOLLAR DEFENSE ENDORSEMENT LPL990015 GENERAL PURPOSE ENDORSEMENT LPL990020 RETROACTIVE DATE LIMITATION ENDORSEMENT LPL990021 RETROACTIVE DATE LIMITATION ENDORSEMENT INDIVIDUAL PL990049MN MINNESOTA AMENDATORY ENDORSEMENT LPL-POL-02 POLICY NAMEDINSURED This endorsement, effective 12:01 A.M. Issued by Wesco Insurance Company. CLAIM EXPENSES OUTSIDE POLICY LIMITS ENDORSEMENT Tallen & Baertschi, Attorneys at Law September 25, 2015 forms a part of Policy WPP 1096450 01 No. Section III. LIMITS OF LIABILITY AND DEDUCTIBLE is amended to include: Coverage Benefits The following reduces the amount of claim expenses applicable to the Limits of Liability: 1. If the Each Claim Limits of Liability stated in the Declarations is less than $1,000,000, then an amount of claim expenses equal to the "Each Claim" Limits of Liability stated in the Declarations shall not reduce to the Limits of Liability. 2. If the "Each Claim" Limits of Liability stated in the Declarations is $1,000,000 or more, then the first $1,000,000 of claim expenses shall not reduce to the Limits of Liability. NAMEDINSURED This endorsement, effective 12:01 A.M. Issued by Wesco Insurance Company. LPL990005 Page 1 of 1 Ed 0515 FIRST DOLLAR DEFENSE ENDORSEMENT Tallen & Baertschi, Attorneys at Law September 25, 2015 forms a part of Policy WPP1096450 01 No. It is agreed that Section Ili. LIMITS OF LIABILITY AND DEDUCTIBLE, Subsection C. Deductible, is deleted in its entirety and replaced with the following: C. Deductible The deductible amount stated in the Declarations is the total amount of the Insured's liability for each and every claim and applies to the payment of damages. The deductible shall be paid by the Named Insured or, upon the Named Insured's failure to pay, jointly and severally by all Insureds. The Limits of Liability set forth in the Declarations are in addition to and in excess of the deductible. NAMEDINSURED This endorsement, effective 12:01 A.M. Issued by Wesco Insurance Company. LPL990014 Page 1 of 1 Ed0111 GENERAL PURPOSE ENDORSEMENT Tallen & Baertschi, Attorneys at Law September 25, 2015 forms a part of Policy WPP1096450 01 No. SPECIFIED PUBLIC OFFICIALS LEGAL SERVICES COVERAGE It is agreed that solely as respects the Insured specified below while rendering legal services for the entities specified below, Section IV, Exclusion E is deleted in its entirety. Insured Municipality/Governmental body, subdivision or agency This coverage will not apply if such claim arises out of an act or omission by any lawyer assisting an Insured, on a voluntary basis and without compensation, who is uninsured or not covered by a lawyers professional liability policy providing limits of liability of at least $100,000 Each Claim and $300,000 In the Aggregate. All other terms and conditions remain unchanged. NAMEDINSURED This endorsement, effective 12:01 A.M. Issued by Wesco Insurance Company. LPL990015 Page 1 of 1 Ed0111 MEMORANDUM To: Mayor McMillan and Orono City Council From: Ron Olson, Finance Director Subject: 2017 Budget Date: June 27, 2016 Attachments: A) 2017 Year -to -Date Reports (Unadjusted) B) Health Insurance Cost Comparison C) May Work Session Information 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. In the 2016 budget the council did include an additional levy increase of 3.8% ($183,000) specifically for road funding. A fully funded road program will require an additional $867,000 in annual funding. Taxes for all purposes (roads or General Fund) can be increased by $399,000 without increasing the tax rate. Wages As discussed at the May work session, the current police labor contracts will end on 12/31/2016. The draft budget will include an amount in the contingency line item to cover estimated costs associated with a new labor agreement. The council will need to make a decision on 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%. Each 1% non -wage increase results in a $15,750 increase in the General Fund. A number of employees are due to receive step/longevity increases in 2017. These increases total $60,000. $40,500 of this increase is in the police department. Wages and benefits account for 64% of the budget. As a result, any meaningful budget preparation requires estimates for wages. 2017 Budget — Page 1 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. The LOGIS group has completed the RFP process and has selected Group Health as the insurance carrier for 2017 — 2021. Based on current enrollment, there is an overall decrease of 3.08% in the cost of insurance. However, employees that have selected the lowest cost plans, will see an increase of between 3.41% and 3.50%. Long Term Capital Funding As mentioned above, funding for roads needs to be increased above currently levels. As mentioned at the May work session, funding for equipment replacement also will require future increases. The annual transfer of $240,000 has not been increase since 2007. Council Direction Requested In order to prepare a draft budget for presentation at the July work session, staff is looking for direction on the tax levy, wages, and benefits. These decisions will have the most immediate impact on the tax levy and budget. Staff is also looking for direction on long-term funding solutions for capital assets including roads. While solutions to the long term road and equipment funding may require multiple budget years to address, it is important to keep moving on finding long term funding for these fundamental needs. 2017 Budget — Page 2 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT 101-41110-101 FULL-TIME EMPLOYEES REGULAR 9,100.08 9,100.08 18,200.00 9,099.92 50.0 101-41110-122 FICA 696.12 696.12 1,390.00 693.88 50.1 101-41110-151 WORKER'S COMP INSURANCE PREM 25.00 25.00 50.00 25.00 50.0 101-41110-301 AUDITING AND ACCT'G SERVICES .00 .00 .00 .00 .0 101-41110-433 MEMBERSHIPS 36,041.50 36,041.50 62,100.00 26,058.50 58.0 101-41110-437 TRAINING & DEVELOPMENT .00 .00 500.00 500.00 .0 101-41110-439 MEETING EXPENSES 400.72 400.72 1,000.00 599.28 40.1 101-41110-489 OTHER MISCELLANEOUS CHARGES .00 .00 .00 .00 .0 101-41300-142 TOTAL MAYOR & COUNCIL 46,263.42 46,263.42 83,240.00 36,976.58 55.6 101-41300-101 FULL-TIME EMPLOYEES REGULAR 78,840.57 78,840.57 192,350.00 113,509.43 41.0 101-41300-102 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 4,647.50 4,647.50 10,500.00 5,852.50 44.3 101-41300-111 OTHER .00 .00 .00 .00 .0 101-41300-121 PERA 5,730.63 5,730.63 14,520.00 8,789.37 39.5 101-41300-122 FICA 5,904.28 5,904.28 15,620.00 9,715.72 37.8 101-41300-135 CITY BENEFIT CONTRIBUTION 14,680.00 14,680.00 37,020.00 22,340.00 39.7 101-41300-142 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 605.00 605.00 1,210.00 605.00 50.0 101-41300-208 BOOKS & PERIODICALS .00 .00 300.00 300.00 .0 101-41300-319 PROFESSIONAL SERVICES 2,250.00 2,250.00 6,000.00 3,750.00 37.5 101-41300-331 TRAVEL EXPENSES 1,650.00 1,650.00 4,000.00 2,350.00 41.3 101-41300-340 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 2,488.06 2,488.06 3,500.00 1,011.94 71.1 101-41300-439 MEETING EXPENSES 205.31 205.31 500.00 294.69 41.1 101-41300-489 OTHER MISCELLANEOUS CHARGES 243.64 243.64 3,000.00 2,756.36 8.1 TOTAL ADMINISTRATION 118,439.99 118,439.99 291,120.00 172,680.01 40.7 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 1 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 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 1,831.94 1,831.94 2,200.00 368.06 83.3 101-41410-240 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 1,831.94 1,831.94 18,130.00 16,298.06 10.1 FINANCE DEPARTMENT 101-41500-101 FULL-TIME EMPLOYEES REGULAR 96,102.47 96,102.47 211,380.00 115,277.53 45.5 101-41500-102 FULL-TIME EMPLOYEES OVERTIME .00 .00 200.00 200.00 .0 101-41500-103 PART-TIME EMPLOYEES 8,419.87 8,419.87 21,400.00 12,980.13 39.4 101-41500-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-41500-121 PERA 7,739.34 7,739.34 17,030.00 9,290.66 45.5 101-41500-122 FICA 7,401.76 7,401.76 17,370.00 9,968.24 42.6 101-41500-135 CITY BENEFIT CONTRIBUTION 17,844.54 17,844.54 52,080.00 34,235.46 34.3 101-41500-142 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 665.00 665.00 1,330.00 665.00 50.0 101-41500-208 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 138,497.98 138,497.98 322,320.00 183,822.02 43.0 101-41550-142 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 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 2 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 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT .00 .00 .00 .00 .0 18,759.38 18,759.38 38,500.00 19,740.62 48.7 21,004.07 21,004.07 50,000.00 28,995.93 42.0 449.50 449.50 4,000.00 3,550.50 11.2 6,981.41 6,981.41 10,000.00 3,018.59 69.8 47,194.36 47,194.36 102,500.00 55,305.64 46.0 .00 .00 12,400.00 12,400.00 .0 .00 .00 12,400.00 12,400.00 .0 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 3 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT CENTRAL SERVICES 101-41900-201 OFFICE SUPPLIES 5,012.27 5,012.27 14,570.00 9,557.73 34.4 101-41900-221 EQUIPMENT PARTS & ACCESSORIES 475.56 475.56 3,000.00 2,524.44 15.9 101-41900-223 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 2,030.71 2,030.71 4,000.00 1,969.29 50.8 101-41900-319 PROFESSIONAL SERVICES 7,116.70 7,116.70 12,000.00 4,883.30 59.3 101-41900-321 TELEPHONE 5,077.43 5,077.43 8,000.00 2,922.57 63.5 101-41900-322 POSTAGE 9,196.30 9,196.30 11,000.00 1,803.70 83.6 101-41900-329 INTERNET/OTHER COMMUNICATIONS 3,538.50 3,538.50 8,000.00 4,461.50 44.2 101-41900-352 PRINTING & PUBLISHING 6,552.38 6,552.38 15,000.00 8,447.62 43.7 101-41900-361 GENERAL LIABILITY INS 5,000.00 5,000.00 10,000.00 5,000.00 50.0 101-41900-362 UMBRELLA LIABILITY INS 2,500.00 2,500.00 5,000.00 2,500.00 50.0 101-41900-363 BONDS INSURANCE 100.00 100.00 200.00 100.00 50.0 101-41900-364 MONEYS & SECURITIES INS .00 .00 .00 .00 .0 101-41900-365 BOILER & MACHINERY INS 650.00 650.00 1,300.00 650.00 50.0 101-41900-366 PROPERTY INSURANCE 2,500.00 2,500.00 5,000.00 2,500.00 50.0 101-41900-367 EQUIPMENT FLOATERS INS 650.00 650.00 1,300.00 650.00 50.0 101-41900-368 AUTOMOTIVE INSURANCE 3,700.00 3,700.00 7,400.00 3,700.00 50.0 101-41900-370 INSURANCE AGENT OF RECORD .00 .00 .00 .00 .0 101-41900-381 GAS & ELECTRIC 14,597.15 14,597.15 29,000.00 14,402.85 50.3 101-41900-382 WATER UTILITIES 1,148.66 1,148.66 2,500.00 1,351.34 46.0 101-41900-401 REPAIRS/MAINT-OFFICE EQUIP 4,166.04 4,166.04 16,000.00 11,833.96 26.0 101-41900-403 REPAIRS/MAINT-MISC. EQUIP 136.00 136.00 700.00 564.00 19.4 101-41900-404 REPAIRS/MAINT-BLDGS/GROUNDS 7,172.34 7,172.34 15,000.00 7,827.66 47.8 101-41900-407 JANITORIAL SERVICES 8,557.79 8,557.79 19,000.00 10,442.21 45.0 101-41900-413 OFFICE EQUIPMENT RENTAL 8,419.66 8,419.66 20,000.00 11,580.34 42.1 101-41900-416 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 138,670.08 138,670.08 244,470.00 105,799.92 56.7 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 4 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT POLICE DEPARTMENT 101-42110-101 FULL-TIME EMPLOYEES REGULAR 941,555.32 941,555.32 2,315,280.00 1,373,724.68 40.7 101-42110-102 FULL-TIME EMPLOYEES OVERTIME 6,338.93 6,338.93 50,000.00 43,661.07 12.7 101-42110-103 PART-TIME EMPLOYEES 9,941.54 9,941.54 53,000.00 43,058.46 18.8 101-42110-104 TEMPORARY EMPLOYEES REGULAR .00 .00 .00 .00 .0 101-42110-121 PERA 145,936.46 145,936.46 359,730.00 213,793.54 40.6 101-42110-122 FICA 18,135.35 18,135.35 46,000.00 27,864.65 39.4 101-42110-135 CITY BENEFIT CONTRIBUTION 152,165.63 152,165.63 401,580.00 249,414.37 37.9 101-42110-142 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 35,415.00 35,415.00 70,830.00 35,415.00 50.0 101-42110-201 OFFICE SUPPLIES 5,217.91 5,217.91 15,000.00 9,782.09 34.8 101-42110-208 BOOKS & PERIODICALS .00 .00 1,000.00 1,000.00 .0 101-42110-212 MOTOR FUELS & LUBRICANTS 25,725.07 25,725.07 115,000.00 89,274.93 22.4 101-42110-221 EQUIPMENT PARTS & ACCESSORIES 2,590.52 2,590.52 6,000.00 3,409.48 43.2 101-42110-223 BLDG/GROUNDS MAINT. SUPPLIES 19.97 19.97 1,300.00 1,280.03 1.5 101-42110-226 CLOTHING & PERSONAL EQUIPMENT 21,409.67 21,409.67 25,000.00 3,590.33 85.6 101-42110-228 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 214.11 214.11 6,000.00 5,785.89 3.6 101-42110-304 ENGINEERING -CONSULTING .00 .00 .00 .00 .0 101-42110-307 LEGAL -CONSULTING 3,038.00 3,038.00 8,000.00 4,962.00 38.0 101-42110-310 LOGIS-APPLICATIONS 25,048.00 25,048.00 82,250.00 57,202.00 30.5 101-42110-311 DATA PROCESSING COMMUNICATION 2,936.25 2,936.25 5,000.00 2,063.75 58.7 101-42110-317 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 10,542.21 10,542.21 23,230.00 12,687.79 45.4 101-42110-322 POSTAGE 99.15 99.15 1,200.00 1,100.85 8.3 101-42110-329 INTERNET/OTHER COMMUNICATIONS 2,558.50 2,558.50 6,100.00 3,541.50 41.9 101-42110-331 TRAVEL EXPENSES 26.28 26.28 250.00 223.72 10.5 101-42110-340 GENERAL ADVERTISING .00 .00 .00 .00 .0 101-42110-352 PRINTING & PUBLISHING 1,445.47 1,445.47 1,800.00 354.53 80.3 101-42110-361 GENERAL LIABILITY INS 17,500.00 17,500.00 35,000.00 17,500.00 50.0 101-42110-362 UMBRELLA LIABILITY INS 5,000.00 5,000.00 10,000.00 5,000.00 50.0 101-42110-366 PROPERTY INSURANCE 500.00 500.00 1,000.00 500.00 50.0 101-42110-367 EQUIPMENT FLOATERS INS .00 .00 .00 .00 .0 101-42110-368 AUTOMOTIVE INSURANCE 4,500.00 4,500.00 9,000.00 4,500.00 50.0 101-42110-370 INSURANCE AGENT OF RECORD .00 .00 .00 .00 .0 101-42110-379 INSURANCE DEDUCTIBLES .00 .00 .00 .00 .0 101-42110-381 GAS & ELECTRIC 8,226.72 8,226.72 20,000.00 11,773.28 41.1 101-42110-382 WATER UTILITIES 401.73 401.73 1,200.00 798.27 33.5 101-42110-401 REPAIRS/MAINT-OFFICE EQUIP 2,361.34 2,361.34 5,000.00 2,638.66 47.2 101-42110-402 REPAIRS/MAINT-AUTO EQUIP 21,863.13 21,863.13 50,000.00 28,136.87 43.7 101-42110-403 REPAIRS/MAINT-MISC. EQUIP 2,685.64 2,685.64 8,000.00 5,314.36 33.6 101-42110-404 REPAIRS/MAINT-BLDGS/GROUNDS 3,295.67 3,295.67 6,500.00 3,204.33 50.7 101-42110-407 JANITORIAL SERVICES 6,197.02 6,197.02 15,000.00 8,802.98 41.3 101-42110-413 OFFICE EQUIPMENT RENTAL 2,326.79 2,326.79 2,800.00 473.21 83.1 101-42110-414 EDP/COMMUNICATIONS EQUIP RENT 9,619.90 9,619.90 20,000.00 10,380.10 48.1 101-42110-416 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 17,379.75 17,379.75 35,000.00 17,620.25 49.7 101-42110-439 MEETING EXPENSES 1,378.36 1,378.36 2,500.00 1,121.64 55.1 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 5 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 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 109,593.32 109,593.32 151,000.00 41,406.68 72.6 101-42110-560 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 1,672,643.25 1,672,643.25 4,076,850.00 2,404,206.75 41.0 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 211,165.50 211,165.50 395,150.00 183,984.50 53.4 101-42260-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-42260-381 GAS & ELECTRIC .00 .00 .00 .00 .0 TOTAL FIRE PROTECTION SERVICES 211,165.50 211,165.50 395,150.00 183,984.50 53.4 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 6 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT BUILDING & ZONING 101-42400-101 FULL-TIME EMPLOYEES REGULAR 192,597.27 192,597.27 435,010.00 242,412.73 44.3 101-42400-102 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 14,213.44 14,213.44 32,640.00 18,426.56 43.6 101-42400-122 FICA 14,566.39 14,566.39 33,290.00 18,723.61 43.8 101-42400-135 CITY BENEFIT CONTRIBUTION 22,058.72 22,058.72 74,040.00 51,981.28 29.8 101-42400-142 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 1,310.00 1,310.00 2,620.00 1,310.00 50.0 101-42400-208 BOOKS & PERIODICALS 142.00 142.00 600.00 458.00 23.7 101-42400-212 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 11,392.50 11,392.50 16,000.00 4,607.50 71.2 101-42400-310 INSPECTION SERVICES 32,886.50 32,886.50 100,000.00 67,113.50 32.9 101-42400-319 PROFESSIONAL SERVICES 1,885.00 1,885.00 2,500.00 615.00 75.4 101-42400-331 TRAVEL EXPENSES 91.68 91.68 1,500.00 1,408.32 6.1 101-42400-340 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 1,045.68 1,045.68 2,000.00 954.32 52.3 101-42400-439 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 292,963.18 292,963.18 707,050.00 414,086.82 41.4 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 7 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT PUBLIC WORKS DEPARTMENT 101-43000-101 FULL-TIME EMPLOYEES REGULAR 83,447.39 83,447.39 187,680.00 104,232.61 44.5 101-43000-102 FULL-TIME EMPLOYEES OVERTIME 2,649.63 2,649.63 11,000.00 8,350.37 24.1 101-43000-121 PERA 5,776.20 5,776.20 14,900.00 9,123.80 38.8 101-43000-122 FICA 5,705.83 5,705.83 15,200.00 9,494.17 37.5 101-43000-135 CITY BENEFIT CONTRIBUTION 13,611.97 13,611.97 48,090.00 34,478.03 28.3 101-43000-142 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 6,340.00 6,340.00 12,680.00 6,340.00 50.0 101-43000-208 BOOKS & PERIODICALS 169.00 169.00 170.00 1.00 99.4 101-43000-212 MOTOR FUELS & LUBRICANTS 5,124.49 5,124.49 45,600.00 40,475.51 11.2 101-43000-221 EQUIPMENT PARTS & ACCESSORIES 6,590.30 6,590.30 16,000.00 9,409.70 41.2 101-43000-222 VEHICLE EQUIPMENT & PARTS 1,570.80 1,570.80 8,000.00 6,429.20 19.6 101-43000-224 STREET MAINT. MATERIALS/SUPPLY 18,848.90 18,848.90 40,980.00 22,131.10 46.0 101-43000-226 CLOTHING & PERSONAL EQUIPMENT 1,310.52 1,310.52 3,500.00 2,189.48 37.4 101-43000-240 SMALL TOOLS AND MINOR EQUIP 923.29 923.29 1,000.00 76.71 92.3 101-43000-304 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 1,273.51 1,273.51 4,880.00 3,606.49 26.1 101-43000-386 STREET LIGHTING 10,388.58 10,388.58 21,690.00 11,301.42 47.9 101-43000-402 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 3,640.11 3,640.11 3,000.00 ( 640.11) 121.3 101-43000-404 REPAIRS/MAINT-BLDGS/GROUNDS 7,252.25 7,252.25 .00 ( 7,252.25) .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 82.87 82.87 960.00 877.13 8.6 101-43000-433 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 7.12 7.12 40.00 32.88 17.8 TOTAL PUBLIC WORKS DEPARTMENT 181,797.59 181,797.59 493,830.00 312,032.41 36.8 ENGINEERING 101-43170-303 ENGINEERING -RETAINER .00 .00 .00 .00 .0 101-43170-304 ENGINEERING -CONSULTING 4,412.50 4,412.50 20,000.00 15,587.50 22.1 TOTAL ENGINEERING 4,412.50 4,412.50 20,000.00 15,587.50 22.1 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 8 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 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 6,412.08 6,412.08 35,000.00 28,587.92 18.3 101-43280-121 PERA 711.94 711.94 5,250.00 4,538.06 13.6 101-43280-122 FICA 84.36 84.36 500.00 415.64 16.9 101-43280-135 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 18,921.13 18,921.13 43,000.00 24,078.87 44.0 101-43280-307 LEGAL -CONSULTING 3,630.00 3,630.00 12,000.00 8,370.00 30.3 101-43280-319 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 29,762.71 29,762.71 95,750.00 65,987.29 31.1 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 1,356.16 1,356.16 40,000.00 38,643.84 3.4 TOTAL SPECIAL PROJECTS -CONTINGENCIES 1,356.16 1,356.16 405,000.00 403,643.84 .3 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 9 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT PARKS 101-45200-101 FULL-TIME EMPLOYEES REGULAR 9,091.34 9,091.34 20,070.00 10,978.66 45.3 101-45200-102 FULL-TIME EMPLOYEES OVERTIME 160.11 160.11 .00 ( 160.11) .0 101-45200-103 PART-TIME EMPLOYEES 2,935.00 2,935.00 .00 ( 2,935.00) .0 101-45200-104 TEMPORARY EMPLOYEES REGULAR .00 .00 10,000.00 10,000.00 .0 101-45200-121 PERA 677.86 677.86 1,510.00 832.14 44.9 101-45200-122 FICA 699.56 699.56 2,300.00 1,600.44 30.4 101-45200-135 CITY BENEFIT CONTRIBUTION 865.80 865.80 3,600.00 2,734.20 24.1 101-45200-151 WORKER'S COMP INSURANCE PREM 745.00 745.00 1,490.00 745.00 50.0 101-45200-212 MOTOR FUELS & LUBRICANTS 18.99 18.99 .00 ( 18.99) .0 101-45200-221 EQUIPMENT PARTS & ACCESSORIES 588.68 588.68 500.00 ( 88.68) 117.7 101-45200-223 BLDG/GROUNDS MAINT. SUPPLIES 4,186.75 4,186.75 1,500.00 ( 2,686.75) 279.1 101-45200-225 MISC PARK SUPPLIES 354.46 354.46 10,000.00 9,645.54 3.5 101-45200-319 PROFESSIONAL SERVICES 495.00 495.00 1,000.00 505.00 49.5 101-45200-331 TRAVEL EXPENSES .00 .00 .00 .00 .0 101-45200-381 GAS & ELECTRIC 163.85 163.85 550.00 386.15 29.8 101-45200-402 REPAIRS/MAINT-AUTO EQUIP 20.00 20.00 .00 ( 20.00) .0 101-45200-403 REPAIRS/MAINT-MISC. EQUIP 146.56 146.56 .00 ( 146.56) .0 101-45200-404 REPAIRS/MAINT-BLDGS/GROUNDS 16,378.99 16,378.99 52,000.00 35,621.01 31.5 101-45200-415 OTHER EQUIPMENT RENTALS 1,087.06 1,087.06 3,300.00 2,212.94 32.9 101-45200-416 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 38,615.01 38,615.01 108,120.00 69,504.99 35.7 FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 10 CITY OF ORONO EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 6 MONTHS ENDING JUNE 30, 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 1,879.65 1,879.65 3,000.00 1,120.35 62.7 101-45210-092 SOFT DRINKS FOR RESALE 2,351.92 2,351.92 4,000.00 1,648.08 58.8 101-45210-093 CONCESSIONS FOR RESALE-TXBL .00 .00 1,500.00 1,500.00 .0 101-45210-094 CONCESSIONS FOR RESALE-NONTAX 1,366.75 1,366.75 1,000.00 ( 366.75) 136.7 101-45210-095 PRO SHOP ITEMS FOR RESALE 152.92 152.92 .00 ( 152.92) .0 101-45210-099 OTHER FOR RESALE .00 .00 .00 .00 .0 101-45210-101 FULL-TIME EMPLOYEES REGULAR 13,528.68 13,528.68 32,690.00 19,161.32 41.4 101-45210-103 PART-TIME EMPLOYEES 16,689.00 16,689.00 37,160.00 20,471.00 44.9 101-45210-104 TEMPORARY EMPLOYEES REGULAR 395.00 395.00 .00 ( 395.00) .0 101-45210-121 PERA .00 .00 3,640.00 3,640.00 .0 101-45210-122 FICA 1,283.35 1,283.35 6,660.00 5,376.65 19.3 101-45210-135 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 895.00 895.00 1,790.00 895.00 50.0 101-45210-201 OFFICE SUPPLIES 166.22 166.22 300.00 133.78 55.4 101-45210-212 MOTOR FUELS & LUBRICANTS 1,290.80 1,290.80 5,000.00 3,709.20 25.8 101-45210-221 EQUIPMENT PARTS &ACCESSORIES 1,761.15 1,761.15 1,500.00 ( 261.15) 117.4 101-45210-223 BLDG/GROUNDS MAINT. SUPPLIES 3,961.10 3,961.10 4,500.00 538.90 88.0 101-45210-226 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 583.75 583.75 1,000.00 416.25 58.4 101-45210-319 PROFESSIONAL SERVICES .00 .00 .00 .00 .0 101-45210-321 TELEPHONE 1,215.73 1,215.73 2,200.00 984.27 55.3 101-45210-322 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 3,750.00 3,750.00 7,500.00 3,750.00 50.0 101-45210-362 UMBRELLA LIABILITY INS 750.00 750.00 1,500.00 750.00 50.0 101-45210-365 BOILER & MACHINERY INS 150.00 150.00 300.00 150.00 50.0 101-45210-366 PROPERTY INSURANCE 1,150.00 1,150.00 2,300.00 1,150.00 50.0 101-45210-367 EQUIPMENT FLOATERS INS 150.00 150.00 300.00 150.00 50.0 101-45210-368 AUTOMOTIVE INSURANCE 185.00 185.00 370.00 185.00 50.0 101-45210-369 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 2,847.54 2,847.54 8,300.00 5,452.46 34.3 101-45210-401 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 3,763.66 3,763.66 2,500.00 ( 1,263.66) 150.6 101-45210-404 REPAIRS/MAINT-BLDGS/GROUNDS 9,070.09 9,070.09 12,000.00 2,929.91 75.6 101-45210-409 DEPRECIATION & AMORTIZATION .00 .00 .00 .00 .0 101-45210-415 OTHER EQUIPMENT RENTALS 133.13 133.13 9,500.00 9,366.87 1.4 101-45210-433 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 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 11 101-45210-440 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 6 MONTHS ENDING JUNE 30, 2016 GENERALFUND PERIOD YTD BUDGET UNEXPENDED PCNT .00 .00 .00 .00 .0 319.00 319.00 550.00 231.00 58.0 118.97 118.97 .00 ( 118.97) .0 72,003.47 72,003.47 152,640.00 80,636.53 47.2 2,995,617.14 2,995,617.14 7,708,570.00 4,712,952.86 38.9 (2,995,617.14) ( 2,995,617.14) ( 7,708,570.00) ( 4,712,952.86) ( 38.9) FOR ADMINISTRATION USE ONLY 50 % OF THE FISCAL YEAR HAS ELAPSED 06/23/2016 01:23PM PAGE: 12 2500 HDHP, HRA BCBS Health P Amount Percent Employee Aware Open Amount Percent Employee 675.50 635.00 (40.50) -6.00% 3 Employee - Spouse 1,416.50 1,333.50 (83.00) -5.86% - Employee - Child 1,349.00 1,270.00 (79.00) -5.86% - Family 1,753.00 1,651.00 (102.00) -5.82% - Total 40 -3.08% Accord Perform Amount Percent Employee 648.50 622.00 (26.50) -4.09% 3 Employee - Spouse 1,361.50 1,306.50 (55.00) -4.04% 1 Employee - Child 1,296.50 1,244.50 (52.00) -4.01% - Family 1,685.00 1,617.50 (67.50) -4.01% - Total 40 -3.08% Blueprint Achieve Amount Percent Employee Employee 588.50 609.50 21.00 3.57% 1 Employee - Spouse 1,234.00 1,280.00 46.00 3.73% - Employee - Child 1,175.00 1,219.00 44.00 3.74% - Family 1,527.50 1,584.50 57.00 3.73% 2 Total $2500 HRA 10 -1.35% 2600 HDHP, HSA BCBS Health P Aware Open Amount Percent Employee 617.00 580.00 (37.00) -6.00% 7 Employee - Spouse 1,294.00 1,218.00 (76.00) -5.87% 2 Employee - Child 1,233.00 1,160.00 (73.00) -5.92% 5 Family 1,602.00 1,507.50 (94.50) -5.90% 2 Total 40 -3.08% Accord Perform Amount Percent Employee 594.00 568.50 (25.50) -4.29% 3 Employee - Spouse 1,244.50 1,193.50 (51.00) -4.10% - Employee - Child 1,185.50 1,136.50 (49.00) -4.13% 2 Family 1,541.00 1,477.50 (63.50) -4.12% 4 Total 40 -3.08% Blueprint Achieve Amount Percent Employee 539.00 556.50 17.50 3.25% - Employee - Spouse 1,130.50 1,169.00 38.50 3.41% 1 Employee - Child 1,077.00 1,113.50 36.50 3.39% 1 Family 1,398.50 1,447.50 49.00 3.50% 3 Total $2600 HSA 30 -3.55% Total 40 -3.08% 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 Budget 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: I. 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 25" 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 \ a a $ SSG222 78 E c®orAew / co �e0N 0 a) � gGf22g�� � e+ � k � /| / k§\//§k 0 ® \G % -9999-d o n n < & k $ R $«$$@aa 2 v w wNN#Nc© E2g2ggR �� n /N/ -_� dddd �f � ] o 0 cc w a E f � � E 3 � � oma§ # G aaa@a$a e R w Lo0Ncooto 33�$�gq fto k20 7 /boa oI- -J Nm �§ «~/ J k L) ca � 0 La �R v w X222 CL ca / 0 )EEE �\ moo EL _ q; /�\0R2> > cu ' L) \#�ƒ�U±� e k» L) 22---R /k q� /$�RRR2�0- What Should Be Accomplished in 20154016? Top Goals (subm;tted 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 useldensity 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 LO=S, 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. e.. 0 N Ln rl 0 N �pG q7 r E O u d m 3 O t 6n M m x 15 kn o i o co -� Q Q A o� � o s 4— �z _ v tko -° o Z ° Ln a, N E N "' C c m ul b E I4 o -0 G 47 N O �_ Y L Y `a u 7 ° C w C °1 LA g O - ; � E CL i C O f m l CJ I V vii U .� O ba y j +m+ Ln c CL 3 3 C v ; O. bfl C L! di ++ C m y 4 a� cr aajyv,w E + E Lto e v `m a m 3 C 'N c� w m o t O_ ° N *' a°o 'OJA C -C 7 Oa o o y� C O to C u ci u_ k� _ -mp fC C h r v m 45 +- O 0 r • • • o� LEAGUE ol; HANDBOOK FOR MINNESOTA CITIES MINNESOTA Chapter 21 CITIES Municipal Budgeting Table of Contents I. Public versus private budgeting.......................................................r.................... ..............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...............................................................................................11 C. Foster citizen involvement in budget process.............................................................................................1 I D. Link citizen input to budget decisions......................................................................................................... I 1 E. Use the budget to communicate the value of government...........................................................................11 V. Budget structures.........................................................................................................................................12 VI. Revenues.....................................................................................................................................................12 A. 'Fax 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 govermnent..................•.................................................................................................................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.lmc.org 1011512015 Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 C 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. PIan B cities ................................... 25 XI. Charter cities....................................................................................................................... .........................25 XII. Conclusion...................................................................................................................................................25 League of Minnesota Cities Handbook for Minnesota Cities 1011512015 Municipal Budgeting Chapter 211 Page 2 o� j,EAGU E 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: I. Public versus private budgeting Minn. stat. § a: 2.22 t. 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. CITIES PRIVATE OR NON- GOVERNMENTAL This material is provided as general information and is not a substitute for legal advice. Consult your attorney fc- advice concerning specific situations. 145 University Ave. West www.;mc.org 10/15/2015 Saint Paul, MN 55103-2044 (651) 281-1200 or (BOG) 925-1122 0 2015 All Rights Reserved URGANIZA"PIONS (NUOS) E Provide services and programs for the i Provide services to a discreet set of I 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 fc- advice concerning specific situations. 145 University Ave. West www.;mc.org 10/15/2015 Saint Paul, MN 55103-2044 (651) 281-1200 or (BOG) 925-1122 0 2015 All Rights Reserved RELEVANT LINKS: Minn. Stat. § 6.745. Minn. Stat. § 471.6965. See Sections X -XII, Plan B cities, Standard pian 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. i build public infrastructure such as j roads and bridges. j j 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 I 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 j 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 ( :ion -governmental organizations often decisions by consensus. vest decision-making authority in one i person. Competing interests are a given when Fewer competing interests - making a cities prepare budgets. profit and/or being competitive is typically j 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. � i I 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 C'ties 1 011 512 01 5 Municipal Budgeting Chapter 211 Page 4 RELEVANT LINKS: 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 i in time of city activities and services supported by discreet city funds for the icoming 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, Cimpter 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 v1 and vu, 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. Ac , i The outline of accounts may also serve as a useful checklist when preparing Office of he St to Auditor. O&:ce 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. Govemment Finance Officers Preparing city budgets involves policy decisions about the use of money, Association (GFOA): See p. B for as and it helps cities make important decisions, tying funding to specific goals Minnesota recipients of 'lie set by the council. During the budgeting process, city council members and DistingUisi:ec.Budget Award for Fiscal Year 20:4. staff look back to what programs and services worked the previous year and i 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 10/1512015 Municipal Budgeting Chapter 211 Page 5 RELEVANT LINKS: 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. I Planning a city budget includes a fund balance, or unrestricted money Fund Balances for Local Governments, Statement of I 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. I I unforeseen emergencies. Section Vlll, Capital Cities often budget and plan separately for capital improvements because the Improvements. � process covers more than one year. Capital improvements includes planning i 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. jA. Council on Local Results and Innovation Mina:. Stat. § 6.90. ' Set up by law in 2010, the Council on Local Results and Innovation Office of the State Auditor: 2013 Per--b.-mance developed a standard set of 10 performance measures for cities to aid Measurement Repwt. residents, taxpayers, and state and local elected officials in determining the Minn. Stet. 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. Sat. § 6.90. i . Eligible for local government aid reimbursement of 14 cents per capita, Minn. Stay. § 275.70 -.74. 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 211 Page 6 RELEVANT LINKS: 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. Minr.. stat. fi 6-3°. Any jurisdiction participating in the comprehensive performance i I measurement program may be exempt from levy limits, if such limits are in effect. For example, the levy limit exemption provided by participation in ilocal performance measurement and reporting under Minn. Stat. § 6.91 did not apply under the one-year 2013 (payable 2014) levy limit. B. Budget cycle Budget Process, City of The process of annual budget preparation occurs within the framework of Hopkins. 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. Section vi, Revenues. ?Minnesota cities also participate in a revenue-sharing program known as local government aid (LGA). LGA supplements property tax revenue. section IX.C, Truth -in- Cities must prepare and adopt proposed budgets and proposed property tax Taxation. 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 i "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: Min ,. Stat.: 477A,014, a On or before Aug. 1: The Department of Revenue notifies cities of state Minn. Stas. § 275.74, subd. I. Mi -,in, Stat. § 27.5.065, subd. aid amounts. ((a). Minn. Stat. § 275.065, subd. • On or before Sept. 1: The Department of Revenue notifies cities of the 6. 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: 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 may not increase It. Minn. Stat. § 275.966. 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 Gutde for Cities Cities must adopt a final tax levy and certify that final property tax levy I to the county auditor. Mina stat. § 477A.915. Cities generally receive property tax revenues and state aid at various times. Minn. Stat. § 273.:384, subd. 4. The county treasurer distributes property tax revenues to cities in two League ofMinnesota 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. § 275.97, subd. I. 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: Interna: Comrols. for expenditures and revenues. Internal Co ntro.s for i Municipal Lia_:or Stores. i League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 8 RELEVANT LINKS: Petty Cash (Imprest) Funds, Statement of Position, Offce of the State Auditor. Credit Card Use and Policies, Statement of Position, Office of the State Auditor. Minn. Stat. § 471.697, subd. Minn. Stat. § 471.49, subs. 10. Minn. Stat. § 4:2.591, suad. 2. Minn. Stat. § 412.02, 5abd. 3 Handbook, Chapter 26. One important step is for council to adopt a policy on internal controls, meaning that the council sets the rules to prevent misuse of public money. For example, if at all possible, the same person should not be taking in 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 }argon) and a policy on credit card use also helps protect cities from loss or misuse of public funds. 4. Budget audits City councils must audit budgets, depending on the size, structure, and annual revenues of the city. The state auditor publishes the audit threshold for the year gone by in early February of each year. At a minimum, a city with a population of 2,500 or less and a combined clerk/treasurer must have an annual audit done by a certified public accountant if its annual revenue is 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. § 4! 2.73:. 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. i report (CAFR). League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 9 RELEVANT LINKS: ! IV. Budget as a communication tool 2014 City councilrnembers, 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 i 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 lii;ls, 2014. product to communicate, showing what services resident tax dollars fund is i 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 Annuai Citizens have a sense of the current economy, but many people may not Financial Repo -1 (CAFR) 2014, City of Richfield. understand how the state economy impacts city budgets. City councilrnembers 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 Minneso`.a Cities 10/15/2015 Municipal Budgeting Chapter 211 Page 10 RELEVANT LINKS: 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 City of Minnetonka: Ideas or. Many cities use citizen surveys to determine city priorities and guide budget the Budget. decisions about the level of city services provided. City of Hopkins, city Budget Given the stress on city budgets and the expenses of a city-wide survey, a Process. 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 of Worthington, Budget ' city website. Cities may also seek citizen input from targeted discussion iaturmation. groups, advisory boards and public meetings during the development of the Minn. Stat. § 275.065, subd. budget. Even though allowing citizen participation is required in cities with ;e. 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 Tax value I1Mustration firorn l Easy to understand information on what programs and services a city tax Lenexa, Kansas. 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 10115/2015 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 I • Line item budgets: the simplest budgeting structure showing each Budge: Structures, 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 Ievel 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 Financia: Malage*n enc 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 j documents two of them relating to city budgets. VI. Revenues City Revenues chart, 2013. I City budgets start with a picture of revenue (money coming in). Minnesota Miro. 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.9s, Soba. income tax. In addition, without specific legislative authority, y td�. p g ty, 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 1011512015 Municipal Budgeting Chapter 211 Page ?2 RELEVANT LINKS: Minn. stat. § 297x,99, 5und, 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. c;:. 275. Tax revenue includes current property taxes; delinquent property taxes; Minn. Stat. § 282.08. Minn. Stat. § 2:63.025. apportionments from tax forfeit sales; franchise and public utility taxes; and Minn. Stat. § 276.131. Minn. Stat. § 349.2'.3 city sales, gambling, and local lodging taxes, if any. Cities in Minnesota Minn. Stat. § 469.190. E 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, hrope-:y Tax 131, 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 onis 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 Accounting Manual for Smalltaxpayers to understand. Unfortunately, local officials must frequently Cities z::d "ivwns 1 explain how the system works and take the blame for the complicated Minolesata• i 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 1011512 015 Municipal Budgeting Chapter 211 Page 13 RELEVANT LINKS: Another source of revenue for cities come from license and permit fees. Minn. Stat. § 477A,01 1. Minn. Stat. ch. 275. • en Payment of all estimated expenditures, including an allowance for a y p g Minn. Stat. § 2275.70, subd. 5. reserve and the amount necessary to make all city contributions to the Handbook, Chapter 22. Public Employees' Retirement Association (PERA). League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Current expenditure liabilities the city cannot pay in the present year for Chapter 211 Page 14 lack of current funds or that the city will pay through short-term borrowing. 1 . Repayment of all tax anticipation certificates the city issued during present and past years. 0 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 i funded by a portion of the city levy). 3. Gambling taxes and funds Minn. Stas. 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. Stet. § 349.213, subd. Cities may also require organizations conducting lawful gambling to I(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 j are subject to negotiation. Cable franchise fees are limited to no more than 5 Accounting and rinancia> f Reporting Stwdards Uniform. percent of the cable operator's gross revenues over a 12 -month period. The Chart of Accounts" nice 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 or. i Another source of revenue for cities come from license and permit fees. Sources of Revenue. Handbook, Chapter ' 1. 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: In Minnesota, license fees must approximate the direct and indirect costs in issuing the license and policing the licensed activities. D. Intergovernmental revenue 1 1. Local government aid LMC, Locai 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, Flistory of Local an average level of services at reasonable property tax rates. Government Aid' o Cities. LMC: 10 LGA Key Points, A complex formula determines how much LGA each city receives. The July2G15. Minnesota Department of Revenue certifies how much LGA each city LMC, Dates for City Budgets receives by Aug. 1 of each year. Cities receive two annual LGA payments - 10 1, ayments-101, 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 I considerations apply for cities dealing with annexation or a change in the Changes in Fonn 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 vakic there will be no separate MVHC payments coming from the state. This FXClusions: A Timor for ],ocai 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. iThe exclusion is computed in a manner similar to the market value homestead credit. League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 Municipa Budgeting Chapter 211 Page 15 RELEVANT LINKS: 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 Minn. Stat. §§ 69.01 t-.031. The state determines which cities and independent nonprofit firefighting Minn. stat. §424A,08, NEmn. Stat. § 69.021, subd corporations qualify for fire state aid directly ----or qualify to receive fire state 4(t) -aid paid to the voluntary statewide lump -sum volunteer firefighter retirement Minn. Stat. § 471.699. Minn. Stat. § 69.02 1, subd. 5. i 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 Handbook, chapter 26. 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 For both forms, instructions received by March 15 the Department of Revenue will send a final reminder and letters about both forms see Minnesota Revenue: stating that the forms have not been received and that the fire or police Police state Aid (Use Form department could forfeit part or all of its aid for the year if the forms are not PA"1). received within 10 days. The amount of aid forfeited is equal to the amount Fire state Aid ;'Jse Form FA- T) i 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 1 011 51201 5 Municipal Budgeting Chapter 211 Page 16 RELEVANT LINKS: 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. Minn. Stat. § 424A.02, subd. City councils preparing budgets should know that there is a penalty if a 3a. Minn. Stat. § 424A.02, subd. defined benefit relief association pays out service pension benefits in excess 10. of the statutory limits. This penalty includes the possible loss of fire state aid Office of the State Auditor for the city. In addition, city councils should note that volunteer firefighter 525 Park Street - Suite 500, relief associations associated with the city fire department must file a copy St. Paul, MN 55103 (651) 296-2551. 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 Minn. Stat. § 161.081, subd. state aid until such documents have been filed. b. Highway user tax distribution fund Minn. stat. § 162.09. The Minnesota Constitution requires that state gasoline taxes and motor Additiona: Wb -nation on Sources of Reverse. 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) Minn. stat. § 167.05. distributes them. Twenty-nine percent of the fund is dedicated for certain Minn. Stat. § 162.11. 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. Minn. Stat. § 161.081, subd. Pursuant to article 14, section five of the state constitution, t 5 percent of the 1. Additiona: information on net HUTDF is set aside for use on municipal and state roads. The 5 percent Sources ofRcvenue. breaks down as follows: M_!:n. Stat. § 162.08:. . 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. i • 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. I The law also requires the Department of Transportation to consult with the j League of Minnesota Cities and the Association of Minnesota Counties (AMC) regarding the distribution of the HLTDF 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 Addition: Info:-mation 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 (65 1) 643-3060 or I ' 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 Info -nation 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 Finwicial Reporting Standards Uniform: private businesses. Examples include water and sewer operations, municipal Chart of Accoun&' 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 Cites 410!15!2015 Municipal Budgeting Chapter 211 Page 18 RELEVANT LINKS: 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. i 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. Vll. Expenditures City Expenditures 2013. I 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 Manuai far small. Cities and include salaries and other employment costs, equipment, supplies, materials, Towns in Minresota, Office of the State Auditor, June I maintenance, repairs, training, and fuel costs. 2001. League of Minnesota Cities Handbook for Minnesota Cities 1011512015 Municipal Budgeting Chapter 211 Page 19 RELEVANT LINKS: 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. Minn. stat. § 424A.091. 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 lnfotmation on as employer contributions to retirement systems, insurance, sick leave and City Expenditures. similar benefits. Minn. staL. § 415.11. City councils may temporarily reduce their own salaries for one year. The ilaw 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 Mann. stat. § 626.9458. 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 ReFef association in the annual municipal budget. The main sources of revenue for Associations," Office ofthe 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: 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. Minn. Stat. § 475.755. Cities may budget for the use of certificates of indebtedness in a variety of Minn. stat. § 475.61. circumstances. If the income of a city is reasonably expected to be reduced Handbook Chapter 24. 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. Minn. Stat. §475.58, subd. I D. Conservation of natural resources 1(11). Minn. Stat. § 275.70, subd. 5 This category covers all expenditures for the conservation and development (2)- of natural resources, for example shade tree programs and the staff time Minn. Stat. §475.61. taken to provide such programs. I E. Debt service M::m Stat. § 471.70. Cities have no authority to borrow money from banks or financial Office of the State Auditor: Report ofoutsta,iding institutions. Instead, cities issue debt, or bonds, to finance public (Excel I infrastructure improvements. Each year, councils and staff must keep track spreaadshesheet format or Adobe spreadsheet Acrobat form). I of the amount of debt issued, and payments of bond principal, interest and Minn. stat. § 475.755. all associated costs. Cities must also document costs of issuing bonds and M:nn. Stat. § 475,754. Minn. Stat. § 4:2.301. payments to fiscal agents working with a city on bonds in this category. Minn. Stat. § 410.32. Minn. Stat. § 475.755. Cities may budget for the use of certificates of indebtedness in a variety of Minn. stat. § 475.61. circumstances. If the income of a city is reasonably expected to be reduced Handbook Chapter 24. 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. Minn. Stat. §475.58, subd. I Cities may issue short-term certificates of indebtedness to make up for an 1(11). Minn. Stat. § 275.70, subd. 5 expected reduction in revenue from the amount the city was scheduled to (2)- receive when it certified and budgeted for its levy. Minn. Stat. §475.61. Min::. stat. § 412.301. Cities may issue certificates of indebtedness for capital equipment. These Minn. Stat. § 410.32. Handbook chaAter24, 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 1011512015 Municipal Budgeting Chapter 211 Page 21 RELEVANT LINKS: F. Miscellaneous expenditures 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. Sts.. § 12.221. I "Financing Budgeting for city infrastructure (roads, bridges, buildings etc.) covers more .r..astructure Pro iws,"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 o.`Faribault, Capital knprovement Paan sometimes referred to as a capital improvement plan or CIA, 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. Governmental Accounting Standards Board. Ssrinaries of GASB statemzpts. GAS3 34 and Ot::er Governmental Accounting: Effective Dates, Office of the Stee Auditton 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 The Governmental Accounting Standards Board (GASB) issues statements (so far 47 of them) that establish standards for accounting and financial reporting—or generally accepted accounting principles (GAAP) --for state and local governments throughout the United States. In Minnesota, pursuant to state law, the state auditor enforces the accounting standards for cities. Specifically, the state auditor requires and enforces compliance with GAAP for cities with populations of 2,500 and higher. Minn. Stat. § 477A.017, subs. i 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 Auditar. 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: League of Minnesota Cities Handbook for Minnesota Cities 10!1512015 Municipal Budgeting Cnapter 211 Page 23 This guidance should be used with the help of financial service providers to be best prepared to meet financial reporting requiretiients. see osA, GASB; and cF0A. 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 Handbook, chapter 26. 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 Minn, Stat. § 275.065, subd. The law no longer uses the phrase "truth in taxation." However, many Handbook, chapter 22. people still use it to refer to a process which requires cities to allow time for publwitthic input on ty s. cities �of gspec M;nn. stat. § 275.065, subd. 500 ortless and all al taxi populations ng districts is (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 t 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 Minn. star. § 275.06s, subs. 3. auditor was Sept. 15, but 2014 amendments to law extended the deadline to Minn.. stat. 275.066. 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 j below. (Previously, cities with a levy increase lower than the inflation index, j or IPD, were exempt from this process, but that is no longer the case. The i 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!1512015 Municipal Budgeting Cnapter 211 Page 23 RELEVANT LINKS: MN Dep't of Revenue; Truth in Taxation for taxes payable in 2016. Min. Stat § 275.065, subds. I a and I c. Minnesota Department of Revenue; Certificate of Compliance, (form TNT1 available Nov. 25 at Truth in Taxation. Taxation Notification Summary Chart for Taxes Payable 2016 Date Actions On or Special taxing districts (EDAs, HRA s, 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: f 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, 1 1 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 CiEies Handbook for Minnesota Cities 10/1512015 Municipal Budgeting Chapter 211 Page 24 RELEVANT LINKS: X. Plan B cities Minn, stat. H 412.701 — Cities with the Plan B form of government must fol low unique budgeting 412.73 t. Minn. SW. § 412.651, subd. requirements in state law. In these cities, the city manager is responsible for 7. the city budget and sets out the required budgeting structure. State law Handbook, Chapter 1. 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 City of Hopkins City Budget. Accurate and complete budgeting is crucial to a city. It provides sound legal, financial and ethical basis for city operations. Done correctly, budgets show I 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 10115/2015 Municipal Budgeting Chapter 211 Page 25