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Home My WebLink About03-12-13 AgendaChair: It James Ostlund (2014) Committee Members: Rf EN HILLS John Braun (2014) Arlene Mitchell (2013) Katy Peters (2014) David Radziej (2013) Financial Planning y and Analysis Committee Council Liaison: David Grant Marcie 12 2013 6:00 p.m. City Hall City Vision Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651-792-7800 Website www.cityofardenhiIIs.org Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. Agenda CALL TO ORDER 1. APPROVAL OF THE AGENDA 2. MINUTES 2.A. Minutes Documents: 11-7-12 DRAFT MINUTES.PDF, 11-15-12 DRAFT MINUTES.PDF, 12- 04-12 DRAFT MINUTES.PDF 3. UNFINISHED AND NEW BUSINESS 3.A. Work Plan - City Council Request Documents: MEMO.PDF 4. REPORTS A. Reports from the City Council B. Financial Planning and Analysis Committee Comments and Requests ADJOURN A quorum of the City Council may be present at this meeting. MINUTES 'It �-ARQEN HILLS FINANCIAL PLANNING & ANALYSIS COMMITTEE Tuesday, November 07, 2012 6:00 P.M. Council Chambers, Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT: Jim Ostlund, Arlene Mitchell, David Radziej, John Braun, David Grant; Council Liaison MEMBERS NOT PRESENT: Katy Peters OTHERS PRESENT: Kyle Howard Call to Order APPROVAL OF THE AGENDA Motioned: David Radziej Seconded: John Braun APPROVAL OF September 11, 2012, MINUTES Motioned: David Radziej Seconded: John Braun UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study Kyle Howard presented to FPAC how the current rate structure is set up and the historical data from the past 3 years. FPAC then proceeded to discuss possible changes and how the rate structure could be changed to better promote conservations. It was asked that staff could provide 3 new tiers for FPAC to review at the next meeting. These tiers were as follows; 0-10,000 10,001-20,000 20,001-infmity; 0- 5,000 5001-35,000 35,001-infmity; 0-5,000 5,001-30,000 30,001-infinity. These tiers were formed by looking at the historical data over the past 3 years (2009-2011), and looking for the natural peaks and valleys in the data. Kyle Howard then presented to FPAC how the current cash flow projection model was projecting cash flow for the utility funds. The model shows that with the current system water utility and sewer are on track with the 2008 rate study projections. FPAC then was presented with the current projected capital projects that where currently being work on by Council. These estimated projects were further discussed and reviews on how they affected cash flow of the utility funds. 4. REPORTS A. Reports from the City Council Mayor Grant explained the developments to the TCAAP property and how the County is stepping up to take the leading role in the purchase of the land. He also stated that the Council has had a meeting to discuss the development but they are still working on the details. Then he talked about the Holiday Inn property and how the possible development of that property will have 1, 2 and 3 bedroom apartments. Council also has approved a micro brewery to be located down by red fox road. City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES ,.It -AR,DEN HILLS ADJOURNMENT Motioned: Jim Ostlund at 7:30 pm. Seconded: Arlene Mitchell Jim Ostlund, Chair Susan K.Iverson, Finance Director City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us GRAFT MINUTES 'It --AVEN,HILLS FINANCIAL PLANNING & ANALYSIS COMMITTEE Thursday, November 15, 2012 6:00 P.M. Council Chambers, Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT: Jim Ostlund, Arlene Mitchell, David Radziej, John Braun MEMBERS NOT PRESENT: Katy Peters, David Grant; Council Liaison OTHERS PRESENT: Sue Iverson, Kyle Howard Call to Order 1. APPROVAL OF THE AGENDA Motioned: David Radziej Seconded: Arlene Mitchell UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study The first thing covered at the meeting was the new suggested tier structures that the FPAC requested at the November 7`" meeting. These tiers where entered into the excel model being used to calculate total revenue for the utility funds. After reviewing the new tiers FPAC moved on to looking at the actual cost associated with each level of the tiers. Discussion started out covering what the cost to the City was to purchase water from Roseville and projected increases in future years. It was state that the City currently pays $2.40 per 1,000 gallons of water purchased from Roseville. This was a combination of the pass through cost that Roseville pays St. Paul for the water, plus the over head that they add to the charge. Sue Iverson noted that Roseville will be increasing the overhead they charge by $8,000 next year. Staff would continue working the cost per each tier that would give the proper cash flow to cover the capital expenses and operating budget The next issue looked at was the tier structure. From the last meeting it was asked that 3 new tiers be created to show what the affect is on the average residential bill. These tiers showed that there wasn't any major benefit gained by creating the new tiers. It was decided that staff should use the current tier system and add a new level of 0-10,000 gallons. This structure was decided to be the best solution since the current rate structure is working and that the goal is to help the low end users. REPORTS A. Reports from the City Council No reports from the Council. City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES 'It -ARZEN HILLS ADJOURNMENT Motioned: Jim Ostlund at 7:00 pm. Seconded: Arlene Mitchell Jim Ostlund, Chair Susan K. Iverson, Finance Director City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES 'It "ENILLS DRAFT FINANCIAL PLANNING & ANALYSIS COMMITTEE Tuesday, December 4, 2012 6:00 P.M. Council Chambers, Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT: Jim Ostlund, Arlene Mitchell, David Radziej, Katy Peters MEMBERS NOT PRESENT: John Braun, David Grant; Council Liaison OTHERS PRESENT: Sue Iverson, Kyle Howard Call to Order APPROVAL OF THE AGENDA Motioned: David Radziej Seconded: Arlene Mitchell 2. UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study Further discussion was held on the rates that each tier would be charged. It was decided that the 0- 10,000; $2.50/ 10,001-35,000; $3.25/ 35,000 — infinity; $5.75. Next the meter fee was discussed. This fee was decided at $22.50 approximately 50% of the cities fixed cost would be covered. This would give the city guaranteed funding for the upcoming capital expenditures that are planned in the upcoming years. Discussion was also held on the Sewer and Storm Water funds. Staff explained that Sewer was expected to go in the negative for 3-4 years, this was due to the high number of capital projects that were added to 2012 CIP. These projects where moved up in the CIP due to discounted pricing received. The way that the model has projected the cash flow shows that it will recover following the assumptions and rates from the 2008 study. Staff recommended that no changes be made to the rates at this time. Storm Water was also projected to drop to a negative cash flow in the next two years. Staff recommends that this fund would need to have rates adjusted to return the cash flow to a positive balance. The reason that the cash will run negative is due to major road construction projects in the next years. Staff recommended that a gradual increase of the rates over the next 2 years would allow the fund to rebound and return to a positive cash flow, increase of 15% for the next 2 years and then 3%. REPORTS A. Reports from the City Council No reports from the Council. City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES 'it --iItPEN HILLS ADJOURNMENT Motioned: Jim Ostlund at 7:00 pm. Seconded: David Radziej Jim Ostlund, Chair Susan K.Iverson, Finance Director City of Arden Hills 1245 West Highway 96 • Arden Hills Minnesota 55112 Phone 651.792.7800 • Fax 651.634.5137 www.ci.arden-hills.mn.us ,---AR P4 EN HILLS MEMORANDUM DATE: March 12, 1013 TO: Financial Planning and Analysis Committee FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Work Plan — City Council Request Backeround At a worksession held on February 18, 2013, with the City Council, the council requested that the Financial Planning and Analysis Committee research ways for the City to collect fees or revenues from non -profits and tax exempt properties. They would like a report by the end of the year, but November when the final budget is discussed might be something to shoot for. This could also involve meeting with the Council to determine the real objective, or Mayor Grant may be able to guide this discussion at our meeting. Requested Action The committee will discuss the project and determine next steps.