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Home My WebLink About10-13-14-WSAGENDA ITEMS Jet/Vac Truck Demo (Parking Lot) John Anderson, Assistant City Engineer MEMO.PDF TCAAP Regulations And Policies TCAAP Regulations and Policies JDA Governance and Approval Process Discussion (Joel Jamnik, City Attorney and Michael Norton, JDA Attorney) Park Dedication Ordinance Discussion (Joel Jamnik) Discuss Chapters 1 -5 (Planning Staff) MEMO.PDF, ATTACHMENTS.PDF 2015 Proposed Budget And Tax Levy Sue Iverson, Director of Finance and Administrative Services Patrick Klaers, City Administrator MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF, ATTACHMENT D.PDF, ATTACHMENT E.PDF COUNCIL/STAFF COMMENTS ADJOURN If more time is needed, the special City Council work session may reconvene after the regular City Council meeting. Mayor: David Grant Councilmembers: Brenda Holden Fran Holmes Dave McClung Ed Werner Special City Council Work Session Agenda October 13, 2014 5:30 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision 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. CALL TO ORDER - DECLARE OCTOBER 13, 2014, A NON -HOLIDAY TO CONDUCT CITY BUSINESS 1. 1.A. Documents: 1.B. Documents: 1.C. Documents: 2. AGENDA ITEMSJet/Vac Truck Demo (Parking Lot)John Anderson, Assistant City EngineerMEMO.PDFTCAAP Regulations And PoliciesTCAAP Regulations and PoliciesJDA Governance and Approval Process Discussion (Joel Jamnik, City Attorney and Michael Norton, JDA Attorney)Park Dedication Ordinance Discussion (Joel Jamnik)Discuss Chapters 1 -5 (Planning Staff)MEMO.PDF, ATTACHMENTS.PDF2015 Proposed Budget And Tax LevySue Iverson, Director of Finance and Administrative ServicesPatrick Klaers, City AdministratorMEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF, ATTACHMENT C.PDF, ATTACHMENT D.PDF, ATTACHMENT E.PDFCOUNCIL/STAFF COMMENTSADJOURN If more time is needed, the special City Council work session may reconvene after the regular City Council meeting. Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungEd Werner Special City Council Work Session AgendaOctober 13, 20145:30 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden 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.CALL TO ORDER - DECLARE OCTOBER 13, 2014, A NON -HOLIDAY TO CONDUCT CITY BUSINESS1.1.A.Documents:1.B.Documents:1.C.Documents:2. DATE: October 13, 2014 TO: City Councilmembers Patrick Klaers, City Administrator FROM: John Anderson, Assistant City Engineer SUBJECT: Jet/Vac Truck Demo Discussion Staff will be available to show a quick demonstration of the jet/vac truck for those who are interested. The jet/vac truck will be in the parking lot at City Hall. AGENDA ITEM – 1A MEMORANDUM Page 1 of 1 DATE: October 13, 2014 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Jill Hutmacher, Community Development Director SUBJECT: TCAAP Zoning Discussion The City Council has previously discussed the TCAAP Redevelopment Code (TRC), Chapter 3 (Administration) which primarily addresses the JDA review process. Based on City Council discussion and a review of the requirements of the Joint Powers Agreement, the City Attorney and JDA Attorney have made possible revisions to Chapter 3. City Council feedback is requested. The City Attorney has prepared a memo outlining Minnesota Statutes regarding park dedication and how they apply to the City’s acquisition of park land on TCAAP. City staff requests City Council feedback on definitions (Chapter 4) and the Permitted Use Table (Chapter 5) specifically with regards to the definition and placement of single family residential, and small, medium, and large multi-family uses. Attachments  TCAAP Redevelopment Code, Chapters 3-5  Memo, Joel Jamnik, City Attorney, dated October 10, 2014  Draft TCAAP Regulating Plan, September 8, 2014 MEMORANDUM DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 1 448915v4 TW185-1 3.0 Administration 3.1 Applicability (a) The uses and buildings on all properties within TRC zoning classifications shall conform exclusively to the requirements of the TRC unless specifically referenced as otherwise in this TRC (b) Table 3-1 (Applicability Matrix) shall determine the extent to which different sections of the TRC apply to any proposed development. (c) In addition, Table 3-2 shall determine which sections of the TRC apply at which time in the development review process such as Subdivision Review, Site Plan Review or Building Permit Review. (d) Provisions of the TRC are activated by “shall” when required; “should” or “may” when recommended or optional. (e) Terms used throughout the TRC are defined in Section 4.0: Definitions. For those terms not defined in Section 4.0: Definitions, definitions in various sections of the AHC shall apply. For terms not defined in either section, they shall be accorded commonly accepted meanings. In the event of conflict, the definitions of the TRC shall take precedence. (f) Where in conflict, numerical metrics shall take precedence over graphic metrics. 3.2 Relationship to other city ordinances (a) For all properties zoned as TRC, the standards in this document shall supersede standards under: i. Commercial Design Standards under Chapter 13, of the AHC, as amended, except as specifically referenced herein. ii. Sign Standards under Chapter 12, as amended, except as specifically referenced herein. iii. Private Open Space Standards under Chapter 13, as amended, except as specifically referenced herein. iv. Subdivision Ordinance under Chapter 11, as amended, except as specifically referenced herein. (b) Development standards not addressed in this TRC shall be governed by the AHC, to the extent the AHC standards are not in conflict with the TRC. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 2 448915v4 TW185-1 Table 3-1: Applicability Matrix Legend = Section of the Code Applies Blank denotes Standards in this Section of the Code does not apply Co d e S e c t i o n Se c t i o n 5. 0 : S c h e d u l e o f U s e s Se c t i o n 6 .0 : Bu i l d i n g a n d S i t e De v e l o p m e n t St a n d a r d s Se c t i o n 7 .0 : B u i l d i n g D e s i g n St a n d a r d s Se c t i o n 8 .0 : S t r e e t D e s i g n St a n d a r d s Se c t i o n 9 .0 : O p e n S p a c e S t a n d a r d s Se c t i o n 1 0 .0 St r e e t s c a p e a n d La n d s c a p e St a n d a r d s Se c t i o n 1 1. 0 : S i g n S t a n d a r d s Bu i l d -to z o n e s a n d se t b a c k s Bu i l d i n g F r o n t a g e Bu i l d i n g H e i g h t Pa r k i n g a n d Se r v i c e A c c e s s Si d e w a l k , St r e e t Tr e e s a n d St r e e t s c a p e St r e e t S c r e e n a n d Pa r k i n g L o t La n d s c a p i n g St r e e t L i g h t i n g a n d Fu r n i t u r e Ut i l i t i e s Type of Development 1) Commercial (retail, office, restaurant), lodging, mixed use building, apartment/multi -family building (3 or more units per lot), and live-work units (more than one of the following may apply to one application based on the scope of the application) a. New Construction All Sections of the TRC apply b. Existing Building Remodel: Existing non-complying structures or sites may be repaired, maintained or altered provided that such repair, maintenance, or alteration shall not create any new non-compliance of all or any part of such structure or site. i. Change of Use/Expansion of Existing Use (without expansion of conditioned building area) (to a permitted or conditional use in the designated Zoning District) c. Expansion of Existing Buildings (regardless of size of expansion): Structures or sites may be enlarged or expanded provided that such enlargement shall not create any new non-compliance of all or any part of such structure or site. The TRC applicable sections shall apply only to proposed building expansions. d. Expansion of parking area only (with or without a building or use expansion) (includes off-site or accessory parking) i. Up to 10 spaces ii. 11 or more additional spaces e. Existing Signage i. Refacing or changing a panel on an existing sign DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 3 448915v4 TW185-1 Legend = Section of the Code Applies Blank denotes Standards in this Section of the Code does not apply Co d e S e c t i o n Se c t i o n 5. 0 : S c h e d u l e o f U s e s Se c t i o n 6 .0 : Bu i l d i n g a n d S i t e De v e l o p m e n t St a n d a r d s Se c t i o n 7 .0 : B u i l d i n g D e s i g n St a n d a r d s Se c t i o n 8 .0 : S t r e e t D e s i g n St a n d a r d s Se c t i o n 9 .0 : O p e n S p a c e S t a n d a r d s Se c t i o n 1 0 .0 St r e e t s c a p e a n d La n d s c a p e St a n d a r d s Se c t i o n 1 1. 0 : S i g n S t a n d a r d s Bu i l d -to z o n e s a n d se t b a c k s Bu i l d i n g F r o n t a g e Bu i l d i n g H e i g h t Pa r k i n g a n d Se r v i c e A c c e s s Si d e w a l k , St r e e t Tr e e s a n d St r e e t s c a p e St r e e t S c r e e n a n d Pa r k i n g L o t La n d s c a p i n g St r e e t L i g h t i n g a n d Fu r n i t u r e Ut i l i t i e s Type of Development Table 3-1 Continued ii. Signs may be repaired, maintained, altered, or replaced as allowed by state law (M.S. 462.357, Subd. 1e) provided that such repair, maintenance, alteration, or replacement shall not create any new non-compliance, or expansion of any existing nonconformity, of all or any part of such a sign. (applies during sign permit review only) f. New sign or expansion of an existing sign (applies during sign permit review only) 2. Residential Buildings (single family detached, single-family attached, duplex buildings; 1 – 2 units per lot, manor homes; 3-4 units per building) a. New construction b. Change of Use (to a permitted or conditional use in the designated Zoning District) c. Existing Building Remodels: Structures or sites may be repaired, maintained or altered provided that such repair, maintenance, or alteration shall not create any new non-compliance of all or any part of such structure or site. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 4 448915v4 TW185-1 Legend = Section of the Code Applies Blank denotes Standards in this Section of the Code does not apply Co d e S e c t i o n Se c t i o n 5. 0 : S c h e d u l e o f U s e s Se c t i o n 6 .0 : Bu i l d i n g a n d S i t e De v e l o p m e n t St a n d a r d s Se c t i o n 7 .0 : B u i l d i n g D e s i g n St a n d a r d s Se c t i o n 8 .0 : S t r e e t D e s i g n St a n d a r d s Se c t i o n 9 .0 : O p e n S p a c e S t a n d a r d s Se c t i o n 1 0 .0 St r e e t s c a p e a n d La n d s c a p e St a n d a r d s Se c t i o n 1 1. 0 : S i g n S t a n d a r d s Bu i l d -to z o n e s a n d se t b a c k s Bu i l d i n g F r o n t a g e Bu i l d i n g H e i g h t Pa r k i n g a n d Se r v i c e A c c e s s Si d e w a l k , St r e e t Tr e e s a n d St r e e t s c a p e St r e e t S c r e e n a n d Pa r k i n g L o t La n d s c a p i n g St r e e t L i g h t i n g a n d Fu r n i t u r e Ut i l i t i e s Type of Development Table 3-1 Continued d. Expansion of existing use/structure (building additions and new accessory building/structure on the lot): Structures or sites may be enlarged provided that such enlargement shall not create any new non-compliance of all or any part of such structure or site. Standards in the TRC applicable sections shall apply only to the building expansions. It shall allow addition of non- conditioned space such as patios, porches, arcades, canopies, private open space, recreational amenities and courtyards/forecourts. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 5 448915v4 TW185-1 Table 3.2 Application Review Specific Matrix Legend = Standards in this Section of the Code applies NA = Standards in this Section of the Code does not apply Co d e S e c t i o n Se c t i o n 5. 0 : S c h e d u l e o f U s e s Se c t i o n 6 .0 : B u i l d i n g an d S i t e De v e l o p m e n t St a n d a r d s Se c t i o n 7 .0 : B u i l d i n g D e s i g n S t a n d a r d s Se c t i o n 8 .0 : S t r e e t D e s i g n S t a n d a r d s Se c t i o n 9 .0 : O p e n S p a c e S t a n d a r d s Se c t i o n 1 0 .0 St r e e t s c a p e a n d La n d s c a p e S t a n d a r d s Se c t i o n 1 1. 0 : S i g n S t a n d a r d s Bu i l d -to z o n e s a n d se t b a c k s Bu i l d i n g F r o n t a g e Bu i l d i n g H e i g h t Lo t S t a n d a r d s Pa r k i n g a n d S e r v i c e Ac c e s s St r e e t T r e e s a n d St r e e t s c a p e St r e e t S c r e e n a n d Pa r k i n g L o t La n d s c a p i n g St r e e t L i g h t i n g a n d Fu r n i t u r e Ut i l i t i e s Type Application Review 1. Subdivision Plan Review (includes revised plats) 2. Site Plan Review 3. Building Permit Review * = Applies for residential development only * = Applies during Sign Permit review only DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 6 448915v4 TW185-1 3.3 JDA Development Review Process (a) Pre-submittal Meeting Required: All projects shall have a pre-submittal meeting with the Community Development staff prior to submitting the application for development in the Plan Area. At the pre-submittal meeting, the staff shall provide information on the requirements for development and submittal within the Plan Area, including related necessary City approvals. (b) Site Plan Required: A Site Plan shall be required for all proposed developments within the Plan Area. Requirements for Site Plans are listed per Section XX of the AHC. A site plan is reviewed by staff prior to preliminary plat submittal. (c) JDA Review Generally: Projects that comply with all standards of the TRC and projects that require Permitted Adjustments shall be processed by the Joint Development Authority (JDA). The JDA shall review and consider projects which meet all TRC standards as recommended by staff, with approval of such projects subject to a majority vote of all the members of the JDA. Please refer to Figure 3-3 Development Review flow chart above for information on the development review process. The JDA may amend its development review process at any time, subject to any applicable requirements of the Joint Powers Agreement (the “JPA”). (d) JDA Permitted Adjustments: The JDA may approve Permitted Adjustments per the criteria set in Table 3-3 below, subject to a 3/5 vote of the JDA. The Permitted Modification process may be used only to authorize a less restrictive standard and may not be used to impose a higher standard than is established under the TRC on the subject property. A Community Development staff report and recommendation is required for the JDA to make a determination on a Permitted Adjustment. Public notices shall be issued for all Permitted Adjustment hearings; however, such hearings may be combined with any other JDA hearing process, such as for consideration of approval of a project and its related transactional documents. (e) In reviewing any Permitted Adjustment request, the JDA shall use the following criteria: i. The goals, intent and vision of the adopted Regulating Plan Map and TCAAP Master Plan; ii. The extent to which the proposal fits the adjoining design context by providing appropriate building scale and use transitions; iii. The extent to which the proposal provides public benefits such as usable civic and open spaces, livable streets, affordable housing, living wage jobs, structured and/or shared parking and linkages to transit; iv. The extent to which the proposal does not hinder future opportunities for higher intensity development; and v. Considerations of health and welfare to the general public. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 7 448915v4 TW185-1 Table 3-3: Permitted Adjustments Table Code Standard Extent of Adjustment Permitted Criteria 1. Regulating Plan Map a. Location of any Required Street (Town Center, Retail Mixed-Use, Office Mixed-Use, and Neighborhood Transition Districts) Streets shall be on an urban grid system with block faces (measured right-of-way to right-of-way) no less than 200 feet and no more than 400 feet. Block faces may be adjusted no more than 50%. i. Shall maintain the connectivity intended by the Regulating Plan ii. Shall maintain the continuation and/or connectivity with any existing streets where possible iii. Pedestrian connectivity must be maintained iv. City Community Development and Public Works staff approval v. Spine Road shall be subject to County road access spacing and general design requirements. b. Location of any Required Street (Neighborhood District) Streets shall be on a modified grid pattern. Public views and access to open space areas are required. The use of cul-de-sacs should be minimized and must include pedestrian connections from the cul-de-sac to streets or open space located behind private lots. i. Shall maintain the connectivity intended by the Regulating Plan ii. Shall maintain the continuation and/or connectivity with any existing streets where possible iii. City Community Development and Public Works staff approval c. Area of any Required Open Space May be reduced by no more than 10% i. Shall maintain the frontages required by the Regulating Plan ii. Shall include required amenities identified by the City’s TCAAP Master Parks Plan 2. Building Form and Development Standards a. Build to zones/setbacks No more than a 20% change in the maximum or minimum setback applicable or 6 feet whichever is greater. 1) Changes to the build-to-zones and setbacks may only occur when there is cause by one or more of the following: i. A change to the street cross sections established in Attachment 3; or ii. Need to accommodate existing buildings and structures on the lot that meet the overall intent and vision for redevelopment in the Plan Area; or iii. Need to accommodate other required modes of transportation (transit, bike, pedestrian), storm water drainage, water quality, or low impact development (LID) elements on the site; or iv. Need to accommodate overhead or underground utilities and/or easements; or v. Need to preserve existing heritage trees on the property. 2) In no case shall the sidewalk be less than 8 feet in width along the “Spine Road” and 6 feet in width along all other streets when sidewalks will be publicly maintained. b. Building Frontage No more than a 15% reduction in the required building frontage (applicable in the designated zoning district) along each block or subject lot with Pedestrian Priority Frontage designation or no more than a 25% reduction in the required building frontage (applicable in the designated zoning district) along each block or subject lot of a Pedestrian- Friendly Frontage designation. Any reduction in the required building frontage shall be to address one or more of the following: i. To accommodate porte-cocheres for drop-off and pick-up; or ii. To accommodate existing buildings and site elements; or iii. To accommodate other required transit, bike and pedestrian related, storm water drainage, water quality, or low impact development (LID) elements on the site. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 8 448915v4 TW185-1 3.4 Special Development Plan (SDP): The JDA may approve a SDP for projects comprising 10 acres or more which require additional flexibility in the application of the TRC not otherwise available under Table 3-3 above. JDA approval of a SDP is subject to a 4/5 vote of the JDA. The SDP process may be used only to authorize a less restrictive standard and may not be used to impose a higher standard than is established under the TRC on the subject property. A Community Development staff report and recommendation is required for the JDA to make a determination on a SDP. Public notices shall be issued for all SDP hearings; however, such hearings may be combined with any other JDA hearing process, such as for consideration of approval of a project and its related transactional documents. (a) In reviewing any SDP, the JDA shall use the following criteria: vi. The goals, intent and vision of the adopted Regulating Plan Map and TCAAP Master Plan; Parking garages and porte-cocheres are allowed along Pedestrian Priority Frontage and Pedestrian-Friendly streets per authorization from the JDA. Allowed when necessary for building design. c. Corner Lot Building Frontage Reduction of building frontage requirements for lots with two or more Pedestrian Priority frontages (applicable Frontage Standard for the zoning district of the subject corner lot) Frontage requirement along one Pedestrian Priority designated frontage may be replaced with the corresponding standard for Pedestrian-Friendly frontage designation instead. In determining which Pedestrian Priority frontage may be changed to a Pedestrian-Friendly frontage, precedence shall be given to matching any existing building Pedestrian Priority frontages of adjoining blocks or lots on either side of the street. Reduction of building frontage requirements for lots with two or more Pedestrian-Friendly frontages (applicable Frontage Standards for the designated zoning district of the subject corner lot) Frontage requirement along one Pedestrian-Friendly designated frontage may be replaced with the corresponding standard for General frontage designation instead. In determining which Pedestrian-Friendly frontage may be changed to a General frontage, precedence shall be given to matching any existing building Pedestrian- Friendly frontages of adjoining blocks or lots on either side of the street. d. Sidewalk and Streetscape standards Sidewalks, street tree planting, street lighting, and other streetscape standards may be adjusted based on the development context and street cross section. Any changes to the streetscape standards shall be based on specific development context such as existing vegetation, natural features, drainage, and fire access and is subject to approval by the JDA. e. Required Parking Spaces Reduction in the number of required parking spaces Reduction in the number of parking spaces shall be based on one or more of the following: i. A shared parking plan for parking within 1,320 feet of the subject property; or ii. A parking study for the uses proposed on the site; or iii. A combination of the above 3. Other a. Any other numerical standard in the code A modification up to 10% (increase or decrease) ii. A modification of a numerical standard is needed to accommodate existing conditions. iii. The proposed development still meets the intent of the Code. b. Phased Developments Deferment of building frontage standards i. Phased developments may defer building frontage requirements as long as they meet the build-to-zone and parking setback requirements DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 9 448915v4 TW185-1 vii. The extent to which the proposal fits the adjoining design context by providing appropriate building scale and use transitions; viii. The extent to which the proposal provides public benefits such as usable civic and open spaces, livable streets, affordable housing, living wage jobs, structured and/or shared parking and linkages to transit; ix. The extent to which the proposal does not hinder future opportunities for higher intensity development; and x. Considerations of health and welfare to the general public. (b) In reviewing any SDP, the JDA shall not grant flexibility for the following: i. Deviation from requirements of Section 5.0 (Schedule of Uses); ii. Building height beyond the ten percent flexibility allowed by Table 3.3; and iii. Definitions included in Section 4.0 including density parameters for residential land uses. (c) Special Development Plan Submittal: a. Applicant shall meet with Community Development staff to clarify and determine SDP requirements and discuss applicant's development concept. b. Applicant shall submit SDP Concept Plan to Community Development staff . c. Applicant is encouraged to have community meetings where appropriate (Optional). d. Applicant shall submit SDP Master Plan to Community Development staff. e. JDA conducts public hearing(s) on the SDP Master Plan and takes action on the SDP Master Plan. f. The SDP Master Plan, as approved, including all applicable documents, is adopted as the governing development plan for the SDP property. g. Applicant submits Final SDP Plan for elements that are to be developed imminently. A Final SDP Plan will be submitted for each stage of development and construction. h. JDA reviews Final SDP Plan and takes action on the Final SDP Plan. i. Applicant applies for all necessary permits to begin construction. 3.5. TCAAP Regulating Plan Map and TCAAP Master Plan Modifications: Upon denial by the JDA of an application which requires an amendment to the TCAAP Regulating Plan Map (the “Map”) and/or the TCAAP Master Plan (individually or collectively a “Plan Amendment”), or a modification of the text of the TRC (“Text Change)”, or where the applicant has requested such a change, the application shall be referred by the JDA to the City Council for its consideration. A Community Development staff report and recommendation is required for a Plan Amendment or Text Change request to be heard by City Council. Public notices shall be issued for all Plan Amendment or Text Change hearings. The City Council shall consult with County in the Council’s consideration, approval or denial of a Plan Amendment or Text Change as required by § 3.0 of JPA. i. If the City Council approves the Plan Amendment or Text Change, the JDA shall consider the application, as amended pursuant to such approval. ii. A proposed denial of a Plan Amendment or Text Change by City Council shall not be delivered to JDA and such decision shall constitute final denial of the application. DRAFT September 18, 2014 TCAAP Redevelopment Code Page | 10 448915v4 TW185-1 iii. Upon such final denial of a Plan Modification or Text Change, the applicant may reapply to the JDA to seek JDA approval of a revised project meeting the requirements of the TRC, or a revised project requiring a Permitted Adjustment consistent with Table 3-3. 3.6 Plat Approval: The TRC incorporates by reference Chapter 11 of the AHC for plat approval for the purpose of design review, subject to the requirements for public infrastructure per the TRC. This process includes City approval of grading/erosion control plan and utilities plan. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 17 4.0 Definitions Many ter ms used in this document are defined in the AHC, Chapters 1 and 13. Definitions are only included here if not defined in the AHC, or if the definition for this document differs from the AHC. In case of a conflict between the definitions under this Section and the AHC, Chapters 1 and 13, the definitions in this section shall supersede. A Arcade A portion of the main façade of the building that is at or near the property line and a colonnade supports the upper floors of the building. Arcades are intended for buildings with ground floor commercial or retail uses and the arcade may be one or two stories. The ground floor area within the arcade may be conditioned or non-conditioned space. Images of Arcade Buildings B Build-to Zone (BTZ) DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 18 The area between the minimum and maximum front setbacks from the property line. The principal building façade line shall be located within this area. Illustration indicating the location of the build-to zone relative to the minimum and maximum setbacks and the building façade line Building and Site Development Standards The standards established for each Zoning District including but not limited to building placement, building height, parking, service access, and other functional design standards. Building Façade Line The location of the vertical plane of a building along a street frontage. Section View – Gallery Building Section View – Arcade Building DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 19 Plan View Building Façade Line Illustrations Building Frontage The percentage of a building’s façade line that is required to be located within the Build-to Zone (BTZ) as a proportion of the lot’s width along the fronting public street. Required stairs to access entrances, parks, plazas, squares, improved forecourts, and pedestrian breezeway frontages shall count towards the required building frontage. Image showing Building Frontage calculation DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 20 Building Step-Back Building step-back is the setting back of the building façade line away from the street at a specific floor or height. Illustration of a Building Step-Back C D Clear Height The distance from the top of the finished floor to the bottom of the finished ceiling in portions of commercial buildings used for storage, manufacturing, or distribution. Commercial Use or Mixed-Use Building A building in which at least the ground floor of the building is built to Commercial Ready standards and any of the floors are occupied by non-residential or residential uses. Commercial Ready A ground floor space constructed with appropriate building orientation, entrance and window treatment and floor-to-ceiling height in order to accommodate ground floor retail/commercial uses (including, but not limited to, commercial, retail, restaurant, entertainment, and lobbies for civic, hotel, or multi-family uses). Standards for Commercial Ready frontage are in Section 6.1. Prior to the issuance of a certificate of occupancy for a retail/commercial use in a Commercial Ready space, the space must comply with all building and construction codes for commercial uses. The intent of Commercial Ready space is to provide the flexibility of occupying a space in accordance with market demand and allow the use in such space to change to retail/commercial uses accordingly. Complete Street A complete street is a transportation policy and design approach that requires streets to be planned, designed, operated, and maintained to enable safe, convenient and comfortable travel and access for users of all ages and abilities regardless of their mode of transportation. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 21 Cottage/Patio Home The Cottage or Patio Home building type consists of small, one and two-story single-family detached residential units that are built close to the street and each other. They are typically sideyard/zero lot line homes with a small yard or patio space. This type of building enables appropriate infill residential within existing neighborhoods and is important for providing a broad choice of housing types and promoting walkability. Image of a Patio Home Cottage Court The Cottage Court building type consists of a series of small, detached structures, providing multiple units arranged to define a shared court that is typically perpendicular to the street. The shared court takes the place of a private rear yard and becomes an important community-enhancing element. This type is appropriately-scaled to fit as transitions between single-family neighborhoods and commercial corridors. It enables appropriately-scaled, well- designed infill residential and is important for providing a broad choice of housing types and promoting walkability. Image of a Cottage Court E Encroachment Any structural or non-structural element such as a sign, awning, canopy, terrace or balcony that breaks the plane of a vertical or horizontal regulatory limit, extending into a setback, into the public right-of-way, or above a height limit. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 22 F Façade Area The surface area of a building’s elevation (including all floors) not counting minor indentations fronting a particular street. Ground floor façade area is the surface area of a building’s ground floor elevation not counting minor indentations fronting a particular street. Upper floor façade area is the surface area of a building’s upper floor elevations not counting minor indentations fronting a particular street. G H I J K Gallery A roofed promenade or canopy, especially one extending along the wall of a building and supported by arches or columns on the outer side. The gallery space is unenclosed (non- conditioned) space and may be two (2) or more stories tall. Group Home A home or structure and houses a group of more than four (4) persons, some or all of whom are not related by blood, marriage or adoption, living together and maintaining a common household. L Live-Work Unit A dwelling unit that is also used for work purposes, provided that the ‘work’ component is restricted to the uses of professional office, artist’s workshop, studio or other similar use and is located on the street level and constructed as a separate unit under a condominium regime or as a single unit. The ‘live’ component may be located on the street level (behind the work component) or any other level of the building. Live-work unit is distinguished from a home occupation otherwise defined by the AHC in that the work use is not required to be incidental to the dwelling unit; non-resident employees may be present on the premises and customers may be served on site. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 23 Large Multi-Family A building containing more than fifty residential units which may include apartments or condominiums. M Manor Home/Multi-Unit House A multi-unit building (2 to 8 units) that is designed to appear as a large home from the exterior, but functions as a multi-unit building on the interior. Manor Homes have one main front door for the building, but may also have side and rear entries. Parking is accessed from an alley or a driveway to the rear of the lot. Parking does not face a public right-of-way. Image of Manor Home Medium Multi-Family Use A building containing nine to fifty multi-family units which may include stacked flats, apartments, or condominiums. N Numerical Standard Any standard that has a numerical limit (minimums and maximums) or value as established within both the text and graphic standards of the TRC. O Open Space A publicly accessible open space in the form of parks, courtyards, forecourts, plazas, greens, playgrounds, squares, etc. provided to meet the standards in Section 9.0 of this Code. Open Space may be privately or publicly owned and/or maintained. P Q Parking Setback Line DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 24 The distance that any surface parking lot is to be set back from either the principal building façade line or property line along any street frontage (depending on the specific standard in the Zoning District). Surface parking may be located anywhere behind the parking setback line on the property. Illustration of a parking setback line Perimeter Frontage The measurement of the proportion of public street frontage of the total exterior perimeter of a park or open space area. Illustration showing how Perimeter Frontage is calculated for Open Space along a Public Street Permitted Adjustment A requested modification to TRC zoning district standards per the Administrative Modifications provision of Section 3.0: Administration. The JDA shall have the authority to administratively approve a request for a Permitted Adjustment. Primary Entrance The public entrance located along the front of a building facing a street or sidewalk that provides access from the public sidewalk to the building. It is different from a secondary entrance which may be located at the side or rear of a building providing private controlled access into the building from a sidewalk, parking or service area. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 25 R Residential Use Building Means a building that is built to accommodate only residential uses on all floors of the building such as a detached single-family home, attached single-family home (i.e., townhome), two family home (i.e. duplex), Manor Home (3 to 8 units), apartment building (under single ownership or under multiple owners within a condominium regime). S Service-Related Uses All uses that support the principal use on the lot including parking access, garbage/trash collection, utility meters and equipment, loading/unloading areas and similar uses. Single Family Use A building containing one or two primary living units and which may include twin homes and cottage/patio homes. Small Lot Single Family A single-family residential lot that measures less than fifty (50) feet wide. Image of a Small Lot Single Family Small Multi-Family Use A building containing three to eight residential units and which may include townhomes, row homes, manor homes/multi-unit houses, stacked flats, or triplexes/quadplexes. Small Retail or Office Building The Small Retail/Office Building is a commercial building that is generally located at street intersections or as transitions between higher intensity commercial uses and lower intensity residential uses. The ground floor space can be used for residential, office, personal service or retail uses. Residential uses may or may not be located within the building. It is especially DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 26 appropriate for incubating neighborhood-serving retail and service uses and allowing some adjoining streets and multi-modal corridors to expand as the market demands. Stacked Flats Stacked flats building type is a medium-sized structure that consists of less than 12 side-by- side and/or stacked dwelling units, typically with one shared entry. This type of building can include a courtyard apartment. This type is appropriately-scaled to fit within medium-density neighborhoods or as transitions between neighborhoods and commercial corridors. This type enables appropriately-scaled, well-designed infill residential and is important for providing a broad choice of housing types and promoting walkability. Image of a Stacked Flat Street Frontage Designation As identified on the Regulating Plan, existing and recommended streets in the TRC area are designated as Pedestrian Priority, Pedestrian-Friendly or General Streets. Each frontage designation establishes a certain development context in order to improve walkability and pedestrian orientation within the TRC Plan Area. Street Screen A freestanding wall or living fence or combination fence built along the frontage line or in line with the building façade along the street. It may mask a parking lot or a loading/service area from view or provide privacy to a side yard and/or strengthen the spatial d efinition of the public realm. Image of a combination masonry and living street screen Street Wall Indicates the creation of a “wall” or a sense of enclosure along the street with buildings placed immediately adjacent to the street/sidewalk. A street wall has a “void” if there is a surface parking lot or service area adjacent to the sidewalk/street. DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 27 T U V W X Y Z TCAAP Natural Resources Corridor The Natural Resources Corridor within the TCAAP Site Redevelopment will be designed with the goal of maximizing compatibility and functionality of regional storm water, wetland mitigation, the Rice Creek re-meander, floodplain restoration, and groundwater requirements. An additional goal is to provide visual and active and passive recreational features to support adjacent land uses. TCAAP Redevelopment Regulating Plan (Regulating Plan) The official Zoning Map for the TRC Plan Area. The Regulating Plan graphically depicts development standards including Zoning Districts, Street Designations and Special Requirement(s) applicable to properties within the TRC Plan Area. Townhouse/Rowhouse The Townhouse or Rowhouse is a small- to medium-sized typically attached structure that consists of 2–8 houses attached horizontally, not stacked vertically. This type of residential building is typically located in a location that transitions from a single-family neighborhood into a commercial corridor. This type of building enables appropriately-scaled, well-designed residential infill and is important for providing a broad choice of housing types and promoting walkability. A townhouse/rowhouse is a single structure and does not require adjacent townhomes/rowhomes to maintain stability. Triplex/Quadplex A Triplex/Quadplex building is a medium-sized attached structure that consists of 3–4 houses placed side-by-side and/or stacked dwelling units. This type of residential building is typically located in a location that transitions from a primarily single-family neighborhood into a commercial corridor. This building type enables appropriately-scaled, well-designed residential infill and is important for providing a broad choice of housing types and promoting walkability. Image of a Triplex/Quadplex Twin Home The Twin Home, also known as a duplex, is a small- to medium-sized structure that consists of two side-by-side or stacked dwelling units, both facing the street, and within a single building structure. This type has the appearance of a medium to large single-family home and is appropriately-scaled to fit within primarily single-family neighborhoods or medium-density DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 28 neighborhoods. It enables appropriately-scaled, well-designed residential infill and is important for providing a broad choice of housing types and promoting walkability. Image of a Twin Home DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 29 5.0 Schedule of Permitted Uses 5.1 Applicability: General use categories have been identified by Zoning District (Table 5-1). Table 5-1: ABC Zoning District Land Use Table P = Permitted | -- = Prohibited | P/C = Permitted with Criteria in Table 5.2 | A = Accessory Zoning District Uses Ca m p u s Co m m e r c i a l To w n C e n t e r Of f i c e Mi x e d -Us e Re t a i l Mi x e d -Us e Fl e x O f f i c e Ne i g h b o r h o o d Tr a n s i t i o n Ne i g h b o r h o o d Additional Requirements Residential Uses Bed & Breakfast -- P -- -- -- P P* *No more than 6 rentable rooms permitted. Shall be owner-occupied. Parking shall be placed behind the building, or screened from view of the public right-of- way. Group Home --- --- --- --- --- P --- Home Occupation: Class I -- A A A A A A Large Multi-Family -- P P/C P/C -- Live/Work -- P -- -- -- P -- Medium Multi-Family -- P -- -- -- P Nursing Home and assisted living -- P/C P/C P/C -- P/C P/C Senior Independent Living -- P/C P/C P/C -- P P/C See Table 5-2 Single Family -- -- -- -- -- P P Small Lot SF Residential -- -- -- -- -- P P Small Multi-Family -- -- P P/C See Table 5-2 Commercial Uses Automotive Washing -- -- P/C P/C P/C -- -- See Table 5-2 Brewpub -- P P P P -- -- Business service P P P P P -- -- * Less than 5,000 sq. ft. in the Civic Zone Clinic, medical office P P P P P -- -- Club, sports & fitness -- P P P P -- -- Cocktail Lounge -- P -- P -- -- -- Commercial Off-Street Parking P* P* P* P* P* P* -- * Permitted as an accessory use with a primary building only Commercial recreation - indoor -- -- -- -- P -- -- Daycare Facility A P P P P P -- Daycare, family - 10 or less P P P P P -- Dog kennel -- -- -- -- P* -- -- * Completely enclosed; no outside runs Drive-Up Windows -- -- P/C P/C P/C -- -- See Table 5-2 Dry cleaning & laundry, pick- up station -- P -- P -- -- -- Dry cleaning & laundry, self- service laundry -- P -- P -- -- -- DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 30 Table 5-1: ABC Zoning District Land Use Table P = Permitted | -- = Prohibited | P/C = Permitted with Criteria in Table 5.2 | A = Accessory Zoning District Uses Ca m p u s Co m m e r c i a l To w n C e n t e r Of f i c e Mi x e d -Us e Re t a i l Mi x e d -Us e Fl e x O f f i c e Ne i g h b o r h o o d Tr a n s i t i o n Ne i g h b o r h o o d Additional Requirements Financial Institution & service P P P P P P -- Food Preparation P P P P P P -- Hotel/ motel P P P P P -- -- Microbrewery -- P -- P P -- -- Microdistillery -- P -- P P -- -- Mortuary, funeral home -- -- -- -- P/C -- -- See Table 5-2 Office P P P P* P P** -- * As part of a mixed-use building that includes retail on the ground floor ** As part of a live/work building Pawn shop -- -- -- -- P* -- -- * May not be located within 5,280 feet of another pawn shop service use Personal services A P P P P -- -- Pet Services P -- P P P -- -- Research and development facility P -- P -- P -- -- Restaurant and restaurant fast-food A* P P P P P** -- *May be integrated within a buildings that has another permitted primary use in the Campus Commercial Zone ** Less than 5,000 sq. ft. in the Neighborhood Transition Zone Retail sales & service -- P P P P P -- Service station -- -- -- P/C P/C -- -- See Table 5-2 Storage, exterior -- -- -- -- -- -- -- Studio -- P -- P P P* -- * Less than 5,000 sq. ft. in the Neighborhood Transition Zone Theater, indoor -- -- P P P -- -- Vehicle – motorized, leasing and rentals -- -- P/C -- P/C -- -- See Table 5-2 Vehicle – motorized, service -- -- P/C P/C P/C -- -- See Table 5-2 Civic Uses Antenna, Dish or Tower P* P* P* P* P* P* -- * Located on top of a building or architectural component only Club or lodge (non‑profit) -- P P P P -- -- Hospital -- P -- -- P -- -- House of worship -- P P P P P* -- * Less than 5,000 sq. ft. in the Neighborhood Transition Zone Park Facilities (Public) P P P P P P P DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 31 Table 5-1: ABC Zoning District Land Use Table P = Permitted | -- = Prohibited | P/C = Permitted with Criteria in Table 5.2 | A = Accessory Zoning District Uses Ca m p u s Co m m e r c i a l To w n C e n t e r Of f i c e Mi x e d -Us e Re t a i l Mi x e d -Us e Fl e x O f f i c e Ne i g h b o r h o o d Tr a n s i t i o n Ne i g h b o r h o o d Additional Requirements Public use P P P P P P -- School, general education -- P -- -- -- P P School, specialized education -- P P P -- P* -- * Less than 5,000 sq. ft. in the Neighborhood Transition Zone Industrial Uses Garage, Truck -- -- -- -- -- -- -- Manufacturing & processing: Class I P -- -- -- P -- -- Warehousing permitted as an accessory use Manufacturing & processing: Class II -- -- -- -- -- -- -- Utility Substation P* -- -- -- P* -- -- *Equipment shall be screened to not be seen from any public right of way and shall not be placed in the front of any parcel Warehousing A -- -- -- A -- -- Other Uses Adult-Oriented Businesses -- -- -- -- -- -- -- DRAFT October 10, 2014 TCAAP Redevelopment Code Page | 32 5.2 Additional Use Criteria: All uses listed as P/C in Table 5-1 shall also meet the following standards in Table 5-2. Table 5-2 Additional Use Criteria Table Use Character Zone Location & Design Criteria Residential Uses Large Multi-Family Medium Multi-Family Office Mixed-Use Retail Mixed-Use i. For retail mixed-use and office mixed-use districts, no residential uses shall be permitted on the ground floors of building with direct ground floor frontage. ii. For retail mixed-use and office mixed-use districts, ground floors along all designated Pedestrian Priority frontages shall be built to Commercial Ready standards. Small Multi-Family Neighborhood Transition Neighborhood i. Parking shall be placed against an alley or in the rear of the lot and be screened from the public right-of-way. ii. Access from units that are not accessible from the front entries may have access from the rear or the side of the building. Nursing Home and assisted living Senior Independent Living Town Center Office Mixed-Use Retail Mixed-Use i. Housing shall be a part of a mixed-use building within the zone, where the units are above or behind the alternative use on the block. Neighborhood Transition Neighborhood i. Homes shall be designed as either a collective of single-family or duplex homes to fit the scale of the surrounding development. ii. These homes may also be mixed with mixed-generational housing. Commercial Uses Automotive Washing Vehicle – motorized, leasing and rentals Vehicle- motorized, service Office Mixed-Use Flex Office Retail Mixed-Use i. Automotive drive through lanes, service bays, and/or gas station canopies shall meet the design standards in Section 7, Building Design Standards of this code. ii. Outdoor storage of vehicles or other products sold shall NOT have direct frontage along Pedestrian Priority Streets. Outdoor storage of vehicles and/or other products sold shall be screened with a required street screen along Pedestrian-Friendly Streets and General Streets (see Section 11 for standards). Service Station Campus Commercial Retail Mixed-Use Flex Office Commercial Off-Street Parking Campus Commercial Town Center Office Mixed-Use Retail Mixed-Use Flex Office i. New surface parking lots shall be permitted as an interim use of property if they are the primary use of property ii. Applications for new surface lots shall include in-fill building concepts on the lot with a site plan that meets the build-to-zone and building frontage standards of the specific character zone. iii. New surface parking shall be set back a minimum of 30’ from the edge of the right-of-way of Pedestrian Priority Streets. iv. New surface parking shall not be located at a street intersection (of any Pedestrian Priority and Pedestrian-Friendly Streets only) for minimum of 30’ from the intersection along each street. Storage, exterior Flex Office Shall be permitted with no more than 50% building frontage on a Pedestrian-Friendly Street or with no limitation on amount of building frontage along a General Street. Manufacturing & processing: Class II Flex Office Campus Commercial i. Outdoor storage of vehicles, equipment, service vehicles, or other products sold or fleet vehicles utilized shall NOT have direct frontage along Pedestrian Priority Streets. ii. Outdoor storage of vehicles, equipment, and/or other products sold shall be screened with a required street screen along Pedestrian- Friendly Streets and General Streets (see Section 11 for standards). Mortuary, funeral home Flex Office i. Pick-up and drop-off lanes, storage of vehicles, service areas, and drive through facilities shall NOT have direct frontage along Pedestrian Priority Streets. ii. All such areas along other streets shall be screened with a required street screen (see Section 11 for standards). Drive-Up Windows Retail Mixed-Use Flex Office Office Mixed-Use Drive through or drive-up facilities shall meet the design standards in Section 7, Building Design Standards of this code. CAMPBELL KNUTSON Professional Association Attorneys at Law Thomas J. Campbell Roger N. Knutson Thomas M. Scott Elliott B. Knetsch Joel J. Jamnik Andrea McDowell Poehler Soren M. Mattick John F. Kelly Henry A. Schaeffer, III Alina Schwartz Amy Schutt 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 (651)452-5000 Direct Dial: (651) 234-6219 Cellular: (651) 470-0756 Fax: (651) 452-5550 E-mail: jjamnik@ck-law.com October 10, 2014 To: Arden Hills City Council and City Administrator From: Joel Jamnik Subject: Park Land Dedication and Fees At recent Council meetings, an issue was raised regarding park land dedication and park fees for the TCAAP area. Development brings new residents and employees to a city which impacts existing public infrastructure, or requires additional infrastructure, such as streets, utilities, parks and drainage systems. Minnesota State law (§ 462.358) authorizes cities to require as part of subdivision approval that “a reasonable portion of the buildable land, as defined by municipal ordinance” be dedicated to the public for these purposes, including parks, recreational facilities, playgrounds, trails, wetlands, or open space. The requirements must be adopted by ordinance following notice and hearing. The city may choose to accept a cash fee as set by ordinance for some or all of the new lots created in the subdivision, based on the average fair market value of the unplatted land no later than at the time of final approval. The fair market value determination was revised by the 2013 legislature to be an annual city determination based on tax valuation or other relevant data, such as appraisal. The appraisal can take into account the planned extension or provision of city sewer and water extensions and other services. In establishing the portion to be dedicated or preserved or the cash fee, the regulations shall give due considerations to the open space, recreational or common areas and facilities open to the public that the applicant proposes to reserve for the subdivision Cash payments received must be used only for the acquisition and development or improvement of parks, recreational facilities, playgrounds, trails, wetlands, or open space based on the approved park systems plan. Cash payments must not be used for ongoing operation or maintenance of parks, recreational facilities, playgrounds, trails, wetlands, or open space. There must be an essential nexus between the fees or dedication imposed and the municipal purpose sought to be achieved by the fee or dedication. The fee or dedication must bear a rough proportionality to the need created by the proposed subdivision or development. Ownership of the land by the County does not hinder the City’s authority to require dedication or payment as a condition of subdivision approval. The current expected dedication of less than 20 acres from the 427 acre parcel is well within safe limits from previous cases and other city requirements given and anticipated development densities. Esri, HERE, DeLorme, MapmyIndia, © OpenStreetMap contributors, and the GIS user community Legend Gateway Overlay Civic Water Infrastructure Required Open Space Neighborhood Neighborhood Transition Town Center Retail Mixed-Use Flex Office Office Mixed-Use Campus Commercial ¯0 600 1,200 1,800300Feet Regulating Plan TCAAP Redevelopment Code DRAFT August 21, 2014 Frontage Types Pedestrian Priority Pedestrian Friendly All other streets are general September 8, 2014 AGENDA ITEM – 1C MEMORANDUM DATE: October 13, 2014 TO: Honorable Mayor and City Council FROM: Patrick Klaers, City Administrator Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2015 Budget and Tax Levy INTRODUCTION In preparation for adoption of the final tax levy in December, this memo addresses the following information: recap of residential property values (the Council has had this information in previous memos from staff), discussion on preliminary levy and budget, and the City’s levy history and excess fund balance over the fund balance policy for comparison purposes. Staff prepared detailed budget books for the Council for the September 22, 2014 worksession. In response to Council requests for additional information at this worksession the following is being provided: 1. Councilmember McClung’s request for the dollar amount associated with the amount in the fund balance policy over 50%. 2. Exact numbers on the insurance and benefit amounts and plans as currently offered according to the City’s personnel policy (2014 Summaries) 3. Finance and Administrative Services Duties, responsibilities and workload. 4. Breakdown of the amount of increase in the 2015 proposed budget as a result of: a. COLA b. Step increases c. Benefits RESIDENTIAL PROPERTY VALUES According to information provided by Ramsey County in May of this year, the median home value in Arden Hills will increase from $264,700 for 2014 taxes, to $295,100 for 2015 taxes which is an 11.5% increase in value compared to the county average increase of 9.4%. According to Ramsey County, assessed value had declined for five consecutive assessments, the Memo - City Council 2015 Budget and Tax Levy Discussions 2 markets have stabilized, and we are now experiencing an increase of residential, apartment, and commercial values. In order to evaluate the true impact to the residential property owner, you need to take into account the decrease in fiscal disparities (decrease of 2.4%) and the change in the taxable value (increase of 6.4% after exclusions). To help illustrate this, the following table shows the impact to the residential property owner due to the decrease in fiscal disparity dollars and changes in the assessed market value. This results in a net Tax Rate decrease of 5.8% before any levy changes are made. Assuming no City levy change, the home owner that has a median valued home ( value going from $264,700 to $295,100) will see their City taxes going up by $46.33 or 6.6% as illustrated on the following chart. Actual Proposed % Item Pay 2014 Pay 2015 Change (A)(B)(C) 1.Levy before reduction for state aids $3,257,456 $3,257,456 0.0% 2.State Aids - $0 $0 0.0% 3.Certifed Property Tax Levy = $3,257,456 $3,257,456 0.0% 4.Fiscal Disparity Portion of Levy - $254,738 $248,682 -2.4% 5.Local Portion of Levy = $3,002,718 $3,008,774 0.2% 6.Local Taxable Value ÷ 10,741,749 11,425,974 6.4% 7.Local Tax Rate = 27.954%26.333%-5.8% 8.Market Value Referenda Levy $0 $0 0.0% 9.Fiscal Disparity Portion of Levy (SDs only)- $0 $0 0.0% 10.Local Levy = $0 $0 0.0% 11.Referenda Market Value ÷ 1,052,783,000 1,119,584,100 6.3% 12.Market Value Referenda Rate = 0.00000%0.00000%0.0% Taxable Taxing Market Homestead Taxable District Value Exclusion Market Tax Net B/4 Credit Credit Value Capacity Tax Proposed Pay 2015 Pay 2013 MV 76,000@.40%500,000@1.0%(B7 x G) + X 0.988 - rem up to 413799 @.09%(D - E)rem @ 1.25%(B12 x D)Annual Increase Monthly incr.Annual Increase Monthly incr. Estimated Tax District rate as % of total rate: 150,000 23,740 126,260 1,263 $332.59 $26.77 2.23$ $26.77 2.23$ 295,100 10,681 284,419 2,844 $748.91 $46.43 3.87$ $46.43 3.87$ 350,000 5,740 344,260 3,443 $906.65 $54.33 4.53$ $54.33 4.53$ 500,000 - 500,000 5,000 $1,316.65 $63.19 5.27$ $63.19 5.27$ 750,000 - 750,000 8,125 $2,139.56 $138.61 11.55$ $138.61 11.55$ Impact from Market Shifts Total Change and Fiscal Disparities The City’s share of Fiscal Disparities (line 4) has decreased, and the City’s Tax Capacity (line 6) has increased, which results in a 5.8% decrease in the tax rate. Fiscal Disparities runs on a one year lag and is based on the levy amounts that jurisdictions submitted for 2014 (or last year). Jurisdictions that increased their levies will receive more, while those that kept their levies flat or fairly small will see decreases. Memo - City Council 2015 Budget and Tax Levy Discussions 3 RECAP OF RAMSEY COUNTY FINANCE DIRECTORS MEETING On August 7, 2014, Ramsey County held a meeting with its Finance Directors from all taxin g districts. The Assessor is optimistic that our real estate markets are much improved and still getting better. Residential markets experienced the most positive improvements and with buyer activity improving, there are fewer foreclosure and short sales. Apartment markets continue to be very healthy and there is substantial construction of new apartments across the Twin Cities metro area. Commercial and industrial markets have recovered most of the loss in value from the recession. County-wide Commercial/Industrial aggregate values have increased 0.6%. In Arden Hills we have seen a decrease in this area of 0.1% vs. a decrease of 3.69% in Pay 2014, but you must also factor in tax petitions and appeals that have adjusted values. There is a backlog of tax court petitions but they are working to get through the backlog of petitions. PRELIMINARY PROPERTY TAX LEVY AND BUDGET Staff is presenting a Preliminary General Fund levy increase of 5.0% and a preliminary General Fund Budget of $4,437,830 which uses $18,998 in reserves and includes a transfer from the General Fund to the EDA of $30,000. The proposed levy would have the following effect on the median valued home in Arden Hills as shown on the following page. Actual Proposed % Item Pay 2014 Pay 2015 Change (A)(B)(C) 1.Levy before reduction for state aids $3,257,456 $3,421,950 5.0% 2.State Aids - $0 $0 0.0% 3.Certifed Property Tax Levy = $3,257,456 $3,421,950 5.0% 4.Fiscal Disparity Portion of Levy - $254,738 $248,682 -2.4% 5.Local Portion of Levy = $3,002,718 $3,173,268 5.7% 6.Local Taxable Value ÷ 10,741,749 11,425,974 6.4% 7.Local Tax Rate = 27.954%27.772%-0.7% 8.Market Value Referenda Levy $0 $0 0.0% 9.Fiscal Disparity Portion of Levy (SDs only)- $0 $0 0.0% 10.Local Levy = $0 $0 0.0% 11.Referenda Market Value ÷ 1,052,783,000 1,119,584,100 6.3% 12.Market Value Referenda Rate = 0.00000%0.00000%0.0% Taxable Taxing Market Homestead Taxable District Value Exclusion Market Tax Net B/4 Credit Credit Value Capacity Tax Proposed Pay 2015 Pay 2013 MV 76,000@.40%500,000@1.0%(B7 x G) + X 0.988 - rem up to 413799 @.09%(D - E)rem @ 1.25%(B12 x D)Annual Increase Monthly incr.Annual Increase Monthly incr.Annual IncreaseMonthly incr. Estimated Tax District rate as % of total rate: 150,000 23,740 126,260 1,263 $350.76 $44.94 3.75$ $26.77 2.23$ $18.17 1.51$ 295,100 10,681 284,419 2,844 $789.84 $87.36 7.28$ $46.43 3.87$ $40.93 3.41$ 350,000 5,740 344,260 3,443 $956.19 $103.87 8.66$ $54.33 4.53$ $49.54 4.13$ 500,000 - 500,000 5,000 $1,388.60 $135.14 11.26$ $63.19 5.27$ $71.95 6.00$ 750,000 - 750,000 8,125 $2,256.48 $255.53 21.29$ $138.61 11.55$ $116.92 9.74$ Impact from Market Shifts Total Change and Fiscal Disparities Impact from Levy Incr Memo - City Council 2015 Budget and Tax Levy Discussions 4 TAKING A LOOK AT ARDEN HILLS LEVY TAX RATE HISTORY AND FUND BALANCE INFORMATION The State of Minnesota has granted local municipalities the authority to levy taxes to fund operations and debt payments. The City’s entire tax levy goes for General Fund expenditures. For the City of Arden Hills, the property tax levy accounts for approximately 79% of the General Fund revenues. The following table provides a historical view of the City’s property tax levies: % Year Tax Levy Change Tax Rate 2002 2,201,002$ -25.092% 2003 2,265,712$ 2.94%23.930% 2004 2,333,337$ 2.98%23.367% 2005 2,440,453$ 4.59%21.299% 2006 2,537,520$ 3.98%20.191% 2007 2,688,944$ 5.97%20.206% 2008 2,797,348$ 4.03%19.585% 2009 2,948,646$ 5.41%20.520% 2010 3,016,465$ 2.30%22.647% 2011 3,040,964$ 0.81%24.180% 2012 3,096,994$ 1.84%25.544% 2013 3,191,230$ 3.04%27.931% 2014 3,257,456$ 2.08%27.954% The following chart provides the information on the Actual General Fund balance from each of the audits for that respective year. The chart shows: 1. Net change in the fund balance from the beginning of the year (or actual revenues over expenditures and transfers) 2. The unassigned fund balance or the balance that is available to spend (some fund balance is non-spendable at year end as it was used to prepaid items for the next year) 3. The percent of unassigned balance which is really our reserves – our policy is to maintain 50% in reserves – after the 2013 audit that amount was transferred to the PIR Fund per City Council through a budget amendment according to the revised policy change made in 2013. So there was a budget adjustment and transfer of the $162,417 made in 2014 after the audit was completed and numbers were known. 4. The “Actual Dollars per above” shows the amounts over our 50% reserve target per our fund balance policy, in 2008 $500,000 was transferred to Equipment, Building and replacement and in 2014 $162,417 was transferred to the PIR Fund. Subsequent years will have the amount transferred when there is a positive balance as was done with 2013 in 2014 per the new policy. Please note that the policy changed from using the actual expenditures to ending fund balance to using the next year’s expenditures in 2011. (Also, 2007 shows the amount for City Hall repairs that was transferred out in 2008 and then used to fund the Equipment, Building and Repair Fund). Memo - City Council 2015 Budget and Tax Levy Discussions 5 GENERAL FUND 2006 2007 2008 2009 2010 2011 2012 2013 Net Change in Fund Balance 71,658$ 584,493$ (320,166)$ (28,505)$ (59,068)$ 387,849$ 199,584$ 14,787$ Unassigned Fund balance (per policy should be 50%)53%68%58%54%50.40%54%56%54% Actual Dollars per above 83,850$ 582,719$ 245,314$ 122,826$ 25,870$ 113,617$ 247,028$ 162,417$ ***** *Changed policy to next year's expenditures from current year's actual results **City Hall Payment transferred in 2008 OPERATING BUDGET Salary and Benefits The 2015 preliminary budget is currently being prepared assuming a 2% wage adjustment for non-union staff and a 1.5% wage adjustment for union staff. In surveying surrounding communities most have included a 1.5% - 3.0% COLA increase in their preliminary estimates. The current proposed budget impacts for the General Fund are as follows: a. COLA $18,516 b. Step Increases $2,651 c. Benefits (includes dental, PERA, and payroll taxes. No increase in medical) $4,611 The results from the City Council authorized market and pay equity study should be available before the Council approves the final budget. Our consultant has given us a date of November 17th for preliminary data. Benefit History The City currently provides $699.61 per month per full-time employee for benefits (pro-rated for permanent part-time employees). In September of 2001, the City Council authorized all employees receive Benefit Parity effective October 1, 2001. This meant that every employee would receive the same benefit whether single or family coverage was taken and was the employee’s choice. Attached is the recommendation given at a worksession and the September 24, 2001 minutes when it was adopted. (Attachment A and B) Below is a chart which illustrates the costs of coverage to employees per month for medical and dental since 2004 and the City’s contribution amount. You will note that we offered a Co-Pay plan (BCBS Aware Gold) and to reduce our costs, we then tried a $300 deductible plan in 2007, and the High Deductible Plan with a HSA in 2008. Employees have had their choice of two plans since 2007 as Lakes Country Cooperative allowed this. Starting in 2009, the Council only allowed Benefit Parity if employees took the High Deductible Plan option to encouraged employees to move from the Co-Pay Plan to the High Deductible Plan. By 2013 all employees had switched to the High Deductible Plan and we discontinued the Co-Pay Plan and replaced it with another High Deductible Plan that had an embedded deductible amount for families which had a much higher deductible for both single and family. Dental insurance is through Health Partners and in 2008 we change from Single/Family to Single/Single plus One/Family which Memo - City Council 2015 Budget and Tax Levy Discussions 6 helped to lower those costs. All union employees are on the union plan for medical and dental and pay the same whether they have single or family coverage. $300 Deductible $300 Deductible Embedded Co-Pay Co-Pay $1,600 HD Plan $3,200 HD Plan $3,125 HD Plan $6,250 HD Plan Incr Incr Year Single Family Single Family Single Family %Union % 2004 365.90 807.89 12.25%600.00 9.09% 2005 433.43 953.07 18.46%650.00 8.33% 2006 473.96 1,040.88 9.35%700.00 7.69% 2007 507.54 1,114.35 469.54 1,032.85 7.08%750.00 7.14% *2008 531.21 1,152.15 466.21 1,013.15 4.66%820.00 9.33% *2009 553.11 1,213.40 485.61 1,068.90 4.12%850.00 3.66% *2010 560.38 1,231.12 492.38 1,085.12 1.31%905.00 6.47% #*2011 493.49 1,088.40 433.99 961.90 -11.94%922.00 1.88% *2012 511.31 1,127.31 449.81 996.31 3.61%942.00 2.17% 2013 471.68 1,044.37 418.68 930.37 4.86%962.00 2.12% 2014 473.16 1,048.74 420.16 934.74 0.31%1,012.00 5.20% 2015 No increase is planned in medical - dental is not in yet *Council mandated that parity benefit was only given to those that took HD options, none if Co-Pay option #Coop went out for bids and due to favorable history of claims reduced our rate All union employee pay same rate whether single or family All non-union employees are required to take, at a minimum, single dental and single medical insurance As you can see from the chart above, once the City offered the high deductible plans, we were successful in lowering our increases dramatically. The Council only allowing Benefit Parity if employees took the High Deductible option was a big factor in having our employees shift away from the Co-Pay Plan. Some years (especially 2009, 2012, and 2013) we only received rate increases as a result of a State Statute that governed small group plans – we only have 25-27 employees on our health and dental insurance as union members are on the union insurance. As a result, the cooperative that we are a part of, Lakes Country, gave us dividends back since they could not drop our rates lower. We received $24,288.74 in 2010 based on our 2009 claims history, $18,373.97 in 2011 based on 2010 claims history, and $9,118.73 in 2013 based on 2012 claims history. We received a decrease in rates for 2011 as the cooperative went out for bids and they were able to reduce our costs based on our favorable claims history. While Lakes Country would like to see these funds distributed back to the employees on the plan, the City choose to put these monies aside and use for wellness activities as these savings or the reduced usage was a direct result of wellness activities we instituted in 2009. We have also used them to offset the City’s share of the insurance increases when levy limits were effective. Experience has shown that people use health services differently if they are on a Co-Pay Plan versus a High Deductible Plan. The end result is lower rates based on usage history. In survey’s from surrounding employers, both small and large – we have found that we have had one of the most favorable experiences with health care costs as most cities were fighting double Memo - City Council 2015 Budget and Tax Levy Discussions 7 General Fund Revenues Property Tax Levy 164,494$ Plan Check Fees 10,000 Plan Review & Bldg Permits 10,000 Fines & Forfeits 6,840 Admin Charges to Other Funds 21,242 Other Misc Adjustments 3,407 215,983$ digit increases many years and the amount of monthly contribution to employees range from $700 - $1,000. Salary and Benefits are looked at together when doing compensation packages so while some are rich in salaries others are rich in benefits and benefits play a key part in the recruitment of employees. Our compensation study is taking both into account as a total package when they do their comparisons. Our Benefit Parity approach is a common program for cities. General Fund Revenues and expenditures are shown in the following table. We have highlighted the impact the tax levy and proposed budget on the next page to give you a brief overview. More detailed commentary is found in the department and funds pages of the budget document. Actual Actual Budget Amended Year To Date Proposed % Change FY 2012 FY 2013 FY 2014 FY2014 09/04/2014 FY 2015 14 vs 15 Revenues Taxes Taxes 3,087,159 3,086,064 3,287,556 3,287,556 1,647,039 3,452,050 5.00% Licenses and Permits 415,070 382,038 259,873 259,873 196,541 273,730 5.33% Other Intergovernmental 118,800 120,811 138,100 117,280 81,877 125,328 6.86% Charges for Services 526,334 487,569 415,568 415,568 231,693 445,629 7.23% Fines & Forfeits 33,192 32,056 31,900 31,900 13,323 38,740 21.44% Special Assessments 1,771 3,225 1,822 1,822 1,701 3,000 64.65% Miscellaneous 127,300 (10,335) 88,850 88,850 32,698 80,355 -9.56% Transfers - - - - 15,000 - 0.00% Total Revenues 4,309,625$ 4,101,427$ 4,223,669$ 4,202,849$ 2,219,872$ 4,418,832$ 5.14% Expenditures by Category Personal Services 1,287,850$ 1,329,650$ 1,421,852$ 1,421,852$ 923,595$ 1,465,125$ 3.04% Materials and Supplies 201,997 176,728 121,941 121,941 116,073 157,940 29.52% Other Services and Charges 2,255,221 2,310,255 2,802,277 2,611,055 1,757,743 2,734,765 4.74% Capital Outlay - - - - - - 0.00% Transfers 364,955 270,000 50,000 212,417 212,417 80,000 -62.34% Contingency/Reserves - - - - - - 0.00% Other Financing Uses - - 15,000 - - - 0.00% Total Expenditures 4,110,023$ 4,086,632$ 4,411,070$ 4,367,265$ 3,009,828$ 4,437,830$ 1.62% Fund Balance - January 1 2,151,335 2,350,937 2,365,732 2,365,732 2,365,732 2,201,316 Excess Revenue Over Expenditure 199,602 14,795 (187,401) (164,416) (789,956) (18,998) Fund Balance - December 31 2,350,937$ 2,365,732$ 2,178,331$ 2,201,316$ 1,575,776$ 2,182,318$ Revenues All revenue items were evaluated based on current economic conditions and past trends. The most notable item is the proposed tax levy which equates to $164,494 in additional revenue over last year’s levy. Both Plan Check Fees and Plan Review/Building Permit Revenues have been increased based on trends. Fines and Forfeits have been increased as we had a decrease in past years with the major road construction, but we are seeing increases now that major highways are again open. Administrative charges to other funds increas ed mainly due to technology and the addition of the interns to Finance and Administrative Services as they are allocated out to the other departments with other overhead costs. (To distribute overheads costs which are assignable to all funds, an Administrative Charge is done for Memo - City Council 2015 Budget and Tax Levy Discussions 8 Administration, Finance and Administrative Services, and Government Buildings to all funds from the General Fund per the salary allocation as found in your budget books. These charges were instituted in 2008.) Expenditures Public Safety is increased by $86,118 for increases in the Fire Contract ($28,173, 6.54%), Sheriff’s Contract ($48,829, 4.71%), and Dispatch ($9,116, 15.1%). Finance and Administrative Services is proposing to add back in the intern positions that were cut in 2014 which is 0.75 FTE. TCAAP expenditures were increased for Other Professional Services, Administration reduced Other Professional Services by $8,000 to help offset. Due to the new calculations by the LMCIT, insurance costs have been adjusted based on 2014 actuals and reduced by $11,000. ISSUES TO CONSIDER Public Safety Public Safety costs are set to increase as listed above. This alone would amount to an $86,118 increase in the budget or a levy increase of 2.6%. Capital Reserves In 2014 we made a structural change to put Park and Street maintenance items in the General Fund operating budget for those departments and discontinue the transfer of $200,000 from the General fund to the PIR. TCAAP A TCAAP Capital Fund was established and only general TCAAP expenses are being budgeted in the TCAAP department – all items related to the JPA which the City is responsible for are going to the TCAAP Capital Fund. Finance and Administrative Services In November of 2010, the Council reorganized Finance and Administration into one department called Finance and Administrative Services and added the Finance Analyst (comparable to adding the Associate Planner in 2014). This was done to allow additional capacity for the City Administrator to delegate duties to the Finance Director and reduce the amount of backlog created in the Finance department each time a new intern came onboard. The Personnel Committee reviewed this proposal and recommended it to the City Council as they did the Associate Planner in 2014. A copy of the Council agenda item, which outlined the change to the department in 2010 with the explanation, is attached (Attachment C and D). This was authorized and approved by the City Council on November 29, 2010. It should be noted that this still allowed interns/student workers of 0.35 FTEs in the Finance Department and 0.5 FTEs in the Memo - City Council 2015 Budget and Tax Levy Discussions 9 2015 Rate Increases Water 2% Sanitary Sewer 2% Surface Water 3% Administrative Services Department totaling 0.85 FTEs for the department for clerical help in the general routine tasks as outlined in the attachment. During the 2014 budget discussions, the Finance and Administrative Services department suggested eliminating the intern/student workers and replacing this with a permanent part-time position to give more continuity and eliminate the constant training period as interns/student workers were replaced causing backlogs and many times preventing staff from accomplishing projects and Council goals in a timely manner. Council chose at that time to deny this request and eliminated the intern/student workers from the department entirely. This request is also attached with the cost justification that was given to the Council at that time (Attachment E). The 2015 budget does include the re-establishment of the interns/student workers in the department, but Council should be aware that they are also a revenue source to the General Fund as an Administrative Service Charge to other funds – removing this expenditure will decrease the expenditure budget by $17,224, but it will also decrease the revenue budget by $10,831 giving a total change of $6,393. Other Funds We have had previous discussion about the EDA revenues and operating expenditures. A $30,000 transfer from the General Fund to the EDA Fund has been included in the levy and budget proposed above. Capital Funds were discussed at our June meeting during the Capital Improvement Plan (CIP) review. It should be noted that we still have not identified a funding source for this fund to build reserves. Enterprise Funds are being evaluated and changes made to accurately reflect economic conditions and historical trends and any increases that may be passed through to us by other agencies. GENERAL INFORMATION A final levy needs to be established and certified by December 26th. As Council knows, once a preliminary levy is established, the amount can be reduced, but it cannot be increased. The information on the preliminary budget and levy have been updated per Council direction at the September 22, 1014 worksession, but staff has not prepared revised books at this time, this will be done for the November 24, 2014 worksession. DIRECTION REQUESTED: 1. Discussion with staff regarding the 2015 levy and issues. 2. Further direction to staff regarding 2015 budget preparation. CITY OF ARDEN HILLS MEMORANDUM DATE: September 18 2001 TO: Joe Lynch, City Administrator FROM: Terrance Post, City Accountant SUBJECT: Benefit Parity Recommendation Background The city paid employee insurance benefit is available to be applied against employee health and dental insurance coverage. Employees currently electing family health coverage automatically utilize all of the maximum city benefit of$400 per month by virtue of the fact that this coverage alone costs $488.73 per month. However,employees electing single health and dental coverage current total cost$255.13 per month)remain$144.87 per month under the maximum city insurance benefit. Issue The city currently provides higher benefits to employees electing family health coverage than to those electing single health and dental coverage. Discussion This item was discussed at the September 17,2001 City Council Worksession, and staff was directed to bring it forward to a subsequent Council meeting for further discussion and/or action. Staff has recommended that, effective October 1, 2001,the maximum city paid insurance benefit definition be expanded to include a city paid ICMA 457(b)deferred compensation contribution for those employees unable to utilize the maximum benefit for health and dental insurance coverage. Any other additional elective coverage(i.e., supplemental and/or dependent life) would remain the financial obligation of the employee. A 'Benefit Parity" analysis schedule is attached,which identifies the 2001 financial impact of the recommendation at$3,615.33 and the estimated 2002 financial impact(assuming the city paid benefit maximum increases from$400 to 420 per month)at$12,716.16. Council should further note that non-bargaining unit employees cannot'opt out" of health and dental coverage and must elect single coverage for both as a minimum. Recommendation Staff recommends that the Arden Hills City Council approve a personnel policy change by expanding the definition of city paid benefit to include not only health and dental insurance coverage,but also city paid contributions to the ICMA 457(b)deferred compensation plan, up to the maximum city benefit,effective October 1,2001. CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING SEPTEMBER 24,2001 7:30 P.M. -ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Dennis Probst called to order the regular City Council meeting at 7:32 p.m. Present: Mayor Dennis Probst, Councilmembers Beverly Aplikowski, David Grant, Gregg Larson, and Lois Rem. Absent: None. Also present were City Administrator, Joe Lynch; City Accountant, Terrance Post; City Attorney, Jerry Filla, City Planner, Aaron Parrish; City Engineer, Greg Brown, BRW; and Recording Secretary,Nancy Czajkowski. APPROVAL OF MEETING AGENDA Mr. Lynch explained Consent Agenda Item 4 b should be removed. He stated there was no bench handout due to technical difficulties. MOTION: Councilmember Aplikowski moved and Councilmember Grant seconded a motion to adopt the agenda for the September 24, 2001, regular City Council meeting as revised. The motion carried unanimously(5-0). APPROVAL OF MINUTES A. August 13, 2001 Regular Council Meeting Minutes, Corrected B. August 27, 2001 Regular Council Minutes C. September 12, 2001 Special Council Minutes, Pavement Management Plan Discussion Councilmember Larson requested the following change to the August 13, 2001 Regular Council Meeting Minutes, Corrected, on page 2, in the third paragraph, insert"necessary"after"bank qualification was". Councilmember Larson requested the following changes to the August 27, 2001 Regular Council Minutes: 1. On page 3, Administrator Comments, in the third paragraph, replace "devise"with device". 2. On page 4, in the first paragraph, Councilmember Larson was frustrated by the fact there was no progress and not by the issue. 3.On page 4, in the sixth paragraph, in the first sentence, insert"for a study" after"RFP". 4.On page 5, in the third paragraph, in the seventh line, replace "public works situation" with"public works position". ARDEN HILLS CITY COUNCIL—SEPTEMBER 24, 2001 11 of Plymouth, MN in the amount of$11,746.24. The motion carried unanimously 5-0). C. Pay Estimate#9 (Final),West Round Lake Road Improvements, Phase I, Forest Lake Contracting Mr. Brown explained the Pay Estimate and that it included the release of the final landscaping retainage. MOTION: Councilmember Grant moved and Councilmember Aplikowski seconded a motion to approve Pay Estimate#9 (Final Payment) for Forest Lake Contracting, Inc. of Forest Lake, MN, in the amount of$4,232.85. The motion carried unanimously 5-0). D. Personnel Policy Benefit Recommendation Mr. Lynch explained the follow up information on the total amounts for benefits, including new city employees, and the total financial impact for 2001 and 2002. Mr. Post explained the recommendation for the policy to be effective October 1, 2001. He stated one assumption made was that the benefit level would increase in 2002 by 5%over the 2001 level. Councilmember Grant asked if nine people were not impacted by the change. Mr. Post responded there were two non-bargaining unit employees that were not impacted because they currently elect family health coverage. Councilmember Aplikowski asked for the rationale behind the change. Mr. Post responded it was a fairness issue. He stated all employees would have the same benefit level. Mayor Probst stated the Council had had this discussion on a couple of occasions. He noted it was a fairness issue. He added a person electing single coverage did not receive the same level of benefits as a person electing family coverage. Mr. Post stated the other alternative would be to give everyone single coverage and have those electing family coverage pay the difference in premium. He noted the City benefit would then be capped at $255.13 per month. Councilmember Larson stated he was in support of the recommended change. He noted it was a matter of elementary fairness. He noted they are trying to treat employees fairly by providing benefits equally. Councilmember Aplikowski stated she had a problem with that concept. She noted the employees with family coverage have hospitalization that they may or may not use. She added this was not the same as putting the money in the bank. She stated if they did not use it they did not get any benefit. ARDEN HILLS CITY COUNCIL— SEPTEMBER 24, 2001 12 Councilmember Grant stated trying to equate fairness was a slippery slope. He noted they had two employees who elect family coverage and nine people who elect single coverage. He added fairness could be seen as anyone who wants coverage has it. He stated this was sold at one point to retain employees. He noted that if that was the intent, this was the wrong way to go about it. He added he was not sure he was able to support this change at this time. Councilmember Rem stated this was fair in a different way than the present system, but yet unfair in a different way. She noted nine people could decide to put this compensation in any way they want. She asked why they did not let all of them decide. She stated with the budget issues next year, with the structure changes and a lot of uncertainties she would like to hold off and then go retroactive for the previous 12 months. She noted what has been budgeted has been budgeted. She added they know they could always spend less and move the money elsewhere. She stated she had concerns about the budget including the reorganization and the move to the new City Hall. Councilmember Grant stated if this was more 50150 among the eleven employees, he might be a more persuaded. He noted he assumed that this would be a standing item and would affect the long term cost structure of the employee compensation. Mayor Probst stated the city had budgeted these dollars and had not always spent them. He noted these dollars did not affect any of the other expenditures. He added that after looking at total compensation there was a difference here. He stated he supports paying each employee in different circumstances the same. Councilmember Larson stated the city offers employees benefits and each has a price tag. He noted the employees that were married pay more because they had families. He added that buying insurance gave them a piece of mind that their family was covered. He stated he did not expect a huge turnover next year. He noted if next year all employees decided to get family coverage it would be gone. He added it was an elusive savings. He stated they were trying to make sure all employees receive the same dollar worth of benefits. Councilmember Aplikowski stated she looked at it like a needs basis kind of thing. She noted in business, not all employees were rated equal. She added this could go up every year and asked at what point they not offer this difference. She stated just because it was budgeted does not mean they had to spend it. She noted she would not vote against it, but wanted to know the rationale behind it. Councilmember Grant stated they would never make everything equal. He noted union employees were paying a different rate. He added the disparity was higher between the union employees and the other two employees that pay family coverage. Mr. Post stated two employees electing family coverage were paying$100 more. Councilmember Larson stated they were focusing only on people in this category. He noted in this group,the benefits were not fair. He added he did not disagree there may be other inequities. ARDEN HILLS CITY COUNCIL—SEPTEMBER 24, 2001 13 MOTION: Councilmember Larson moved and Councilmember Aplikowski seconded a motion to approve a personnel policy change by expanding the definition of city paid benefit to include not only health and dental insurance coverage, but also city paid contributions to the ICMA 457(b) deferred compensation plan, up to the maximum city benefit, effective October 1, 2001, as recommended by staff. The motion carried(3-2 Grant and Rem). ADMINISTRATOR COMMENTS Mr. Lynch stated there had been progress on the City Hall issue. He noted staff had reached an agreement with the Contractor and work began last week. He added there would be an additional 18-inch sand base. He stated the furniture would be installed this week. He noted preparations had been made to establish the turn lane and parking lot. He added staff should move in by October 15, 2001. Councilmember Rem asked to be excused at 9:45 p.m. COUNCIL COMMENTS Councilmember Grant stated the Operations and Finance Committee met. He noted direction was given to Mr. Tom Moore on follow up on the RFP for the joint Ramsey County and Arden Hills maintenance facility. Councilmember Larson stated the Parks Recreation and Trails Committee would meet tomorrow to work on master park plan. He noted a park clean up for buckthorn at Crepeau Park would be held on September 29, 2001. He added everyone was invited to attend. Councilmember Larson stated if they are going to plan the city event at Tony Schmidt Park then staff needs to address reserving buildings. Councilmember Aplikowski stated there was supposed to be an events committee meeting this week. She noted Mr. Moore was concerned those requests must be turned in. She added the city would have to pay$80 for such reservation. She added Mr. Moore's concern was that if the city reserved Tony Schmidt Park, it must make a big deal out of the event or it would share the park with other groups. She noted Mr. Moore felt if they wanted a big deal it meant a big budget. Mayor Probst stated he thought the county would allow the city to reserve the entire park whether it used all the shelters or not. Councilmember Aplikowski stated a lot of money was spent on concessions and music. She noted the city was probably looking at$20,000 to do a Day in the Park at Tony Schmidt Park. She added that in discussion with committee members,they felt they could not ask the business community for$50,000 each year. She stated they could certainly reserve Tony Schmidt Park. She noted the people loved it there last year. Councilmember Larson stated they should get the same arrangement as Shoreview gets for the Island Lake Park for the Slice of Shoreview event. It SRZEN HILLS MEMORANDUM DATE: November 29, 2010 TO: Honorable Mayor and City Council Members FROM: Patrick Klaers, City Administrator Sue Iverson, Finance Director/Treasurer SUBJECT: City of Arden Hills Organization Chart Backjround On October 29, 2010 and November 10, 2010, the Personnel Committee met to the current organization chart for the City. As a result of these meetings, the current organization chart was updated and recommended to the City Council. At the City Council's worksession on November 15t", the City Council reviewed and discussed this organization chart and directed staff to put it on the November 29, 2010, City Council Meeting Agenda. Current Discussion The proposed organization chart accurately reflects the current operations of the City and is recommended by the Personnel Committee. Council Action A motion to approve the revised Organization Chart for the City of Arden Hills as presented and recommended by the Personnel Committee. City Council Meeting P:AAdmin\Council\Agendas& Packet Information\2010\11-29-10 Regular\Packet InformationA 1-29- 10_M emo_Org_Ch art.do c Page 1 of 1 FINANCE & ADMINISTRATIVE SERVICES'S MISSION, VISION, and PRIMARY OBJECTIVE Our Mission —The mission of the Finance &Administrative Services Departments is to work in partnership with the Mayor, City Council Members, City Administrator, all departments, other governmental agencies and citizens to provide excellent service to our community. Our Vision - Excellence in the management of carefully garnered public resources. Our Primary Objective - To provide financial management, information, and business products to policy makers, departments, agencies, investors, and the community so they can have confidence in the City of Arden Hills' government, make informed decisions, and achieve their results. Current Organization Finance Director 1) Finance Human Resources Safety Committee Information Technology Risk Management Special Projects Deputy Clerk 1) Accounting Analyst Accounting Clerk Finance Interns Office Support Customer Service Admin 1) 1) 1.35) Specialists Representative Intern/Student Elections 2) 1) 0.5) Council Packets Public Meeting Notices Licensing&Permits Accounts Payable Utility Billing Cash Management Receipt Sp Assessment!Cash Receipts/Cashier Scan Files to Laserfiche File Maintenance Budget Accounts Receivable Investments Cash Receipts/Cashier Building Permits Bulk Mailings Contract Files Audit Coordination Cash Receipts Recon Budget Elections Public Meeting Notices Front Desk-Counter Calendars CAFR Bank Deposits Audit Coordination Building Permits Park&Rec Guide Shredding Publication of Ordinances Chart of Accounts Audit Coordination Fixed Assets Planning Comm Packets Recreation Registration Copying Resolution Files General Ledger Check Writing Bank Reconciliations Council Packets Animal Licensing Filing Ordinance Files Training Financial Reporting Financial Reporting Public Meeting Notices Elections Special Projects Charitable Gambling Payroll File Maint(Finance) Long-range Planning Building File Maint Answer Phone-Primary Human Resource Support Benefit Administration File Maint(Gen Files) Capital Impr Plan(CIP) Licensing and Permits Front Desk-Counter-Primary Data Practices Requests Financial Reporting Back-up Front Desk Monthly Financial Report City Website Office Supplies Council Minutes FPAC Agendas Special Assessments Quarterly Fin Reports Celebrating AH Support Mtg Room Scheduler Admin Update FPAC Minutes Public Meeting Notices Sharepoint(Intranet) Monthly Reports Customer Service Central Files Lodging Tax Gen Office Sup(Backup) Budget Book Notary Office Equip Maint Monthly Fin Reports PAFR CAFR Planning Comm Minutes Parking Permits File Maintenance Backup Acctg Analyst Backup Acctg Analyst PTRC Minutes On-call Schedules Escrow Accounts Payable Park&Rec Guide Petty Cash Quarterly Payroll Reporting File Maintenance File Maint(Gen Files) General Office Support Procurement Cards Payroll Contract Files Notary Purchase Orders Calendars Springbrook Software Time cards PMP Letters and Mailings Publication of Ordinances Resolution Files Ordinance Files Answer Phones-Secondary Front Desk-counter General Office Support Daily Mail Sort Gopher One Calls Some of the tasks appear under multiple persons because of Internal Controls and Separation of Duties The bulk of the intern work would go back to the Finance Director if Kyle is not hired except Bank Reconciliations Shaded areas under Interns are the transaction processing that is done by the part-time intem or Joe if we do not have an intern 1 of 8 Current Organization Finance Finance Accounting Revenue Administrative Human Resources Management Support Financial Planning Investments Customer Service Benefit Administration Budget Cash Management Records Management Compensation Financial Reporting Debt Management Information Processing *Employee Records Audit Coordination Banking Services Permitting OSHA Compliance General Ledget Fiscal Policies Licensing Safety Committee Fixed Assets Elections Federal Reporting Infrastructure/CIP Meeting Agendas State Reporting Insurance/Risk Management Minutes Pay Equity Training Ordinances Employee Training Purchasing Resolutions Policies and Procedures Correspondence Technology Plan Website management Information Technology (IT)Admin Support to Depts Some items under Adminsitrative Support and HR are also currently "dotted-line" relationships or overlap with the duties of the Deputy Clerk 2 of 8 Proposed Organization Director of Finance and Administrative Support t) Finance Activities Human Resources Special Projects Information Technology Risk Management Support to the City Administator Deputy Clerk f) i Elections Licensing&Permits Records Management Charitable Gambling Human Resource Support Safety Committee Data Practices Requests Council Minutes&Agendas Admin Update Central Files Accounting Analyst Finance Analyst Accounting Clerk Finance InternOffice Support Customer Service Admin Intem/Student Specialists Specialist Worker f) 0.35) 2) t) 0.5) Accounts Payable Cash Management Utility Billing Accounts Payable Receipt Sp Assessments Cash Receipts/Cashier Scan Files to Laserfiche Budget Investments Accounts Receiable File Maintenance Cash Receipts/Cashier Building Permits Bulk Mailings Audit Coordination Budget Cash Receipts Recon Payroll Elections Public Meeting Notices Front Desk-Counter CAFR Audit Coordination Bank Deposits Building Permits Park&Ree Guide Shredding Chart of Accounts Fixed Assets Audit Coordination Planning Comm Packets Recreation Registration Copying General Ledger Bank Reconciliations Check Writing Council Packets Animal Licensing Filing Training Financial Reporting Financial Reporting Public Meeting Notices Elections Special Projects Payroll Long-range Planning File Maint(Finance) Building File Maint Answer Phone-Primary Benefit Administration Capital Impr Plan(CIP) File Maint(Gen Files) Licensing and Permits Front Desk-Counter-Primary Financial Reporting Monthly Financial Rpts Back-up Front Desk City Website Office Supplies FPAC Agendas Quarterly Fin Reports Special Assessments Celebrating AH Support Mtg Room Scheduler FPAC Minutes Sharepoint(Intranet) Public Meeting Notices Monthly Reports Customer Service Lodging Tax Budget Book Gen Office Sup(Backup) Notary Office Equip Maint Monthly Fin Reports CAFR PAFR Planning Comm Minutes Parking Permits File Maintenance Information Technology Backup Acctg Analyst PTRC Minutes On-call Schedules Escrow Risk Management Park&Rec Guide Petty Cash Quarterly Payroll Rpt Backup Acctg Analyst File Maint(Gen Files) General Office Support Procurement Cards Contract Files Notary Purchase Orders Calendars Springbrook Software Time cards Backup Finance Analyst PMP Letters and Mailings Publication of Ordinances Resolution Files Ordinance Files Answer Phones-Secondary Front Desk-counter General Office Support Daily Mail Sort Gopher One Calls Some of the tasks appear under multiple persons because of Internal Controls and Separation of Duties 3of8 Proposed Organization Finance & Administrative Services EFinance Administrative Services F- T-- L Accounting Revenue Administrative Human Resources Management Support Financial Planning Investments Customer Service Benefit Administration Budget Cash Management Records Management Compensation Financial Reporting Debt Management Information Processing Employee Records Audit Coordination Banking Services Permitting OSHA Compliance General Ledget Fiscal Policies Licensing Safety Committee Fixed Assets Elections Federal Reporting Infrastructure/CIP Meeting Agendas State Reporting Insurance/Risk Management Minutes Pay Equity Training Ordinances Employee Training Purchasing Resolutions Policies and Procedures Correspondence Website management Technology Plan Information Technology (IT) Admin Support to Depts 4 of 8 PROGRAMS and SERVICES ThTh®nce department plans, organizes, leads, and monitors the activities of the two programs: accounting and revenue management. Finance Goals Developing and implementing efficient and effective financial policies, plans and reporting systems that assure the City's long-term fiscal health. Protecting the City's assets from unauthorized use. Effectively using the City's financial information technology resources in improving productivity, customer service and access to critical information. Providing quality service to all of the division's customers — both external and internal. Major Activities Fiscal policy advice and guidance. Preparing and implementing policies and plans for effectively managing the City's financial resources and preserving its long-term financial health; advising the Mayor, Council, City Administrator and management staff on fiscal matters; coordinating the preparation of the City's financial plan and budget; and reviewing Council agenda reports and other policy documents for fiscal impacts. Department leadership. Develop an organization that effectively builds and uses the talents and skills of each team member in achieving the department's mission, vision and objectives; communicating the City's mission, vision and goals to all team members and assuring that they guide actions and outcomes; developing departmental and employee work programs and monitoring performance; coordinating activities with other departments; maintaining a positive work environment and achieving a high level of employee morale; and representing department programs before the Council, public, staff and other public agencies. Department administration. Coordinating financial activities; preparing and administering departmental budgets and financial reports; supervising department personnel; and maintaining financial records. Accountina The accounting program coordinates preparation of the City's budget, issues financial reports, and administers the disbursement of City funds in accordance with adopted fiscal policies and internal control procedures. Program Goals Developing and implementing effective and efficient financial planning, reporting, and accounting systems that help the operating departments achieve their objectives. Providing excellent customer service. Protecting the City's resources from unauthorized use. Major Program Activities Financial planning and reporting. Coordinating preparation of the financial plan and annual budget; preparing the comprehensive annual financial report (CAFR); coordinating annual and special audits; preparing annual Office of the State Auditor Reports; issuing interim financial reports on the City's fiscal and budgetary status; maintaining on-line access of financial information to City management and other system users. Accounts payable. Maintaining the organization's accounts payable system, processing the City's accounts payable and issuing checks to vendors; filing special and annual reports required by regulatory and grant agencies; reviewing internal controls and adhering to established payable procedures; maintaining vendor files; reviewing and auditing selected pay authorizations. General accounting services and policies. Maintaining the general ledger system and chart of accounts; preparing daily cash deposits and reports; reconciling monthly bank statements; providing accounting services; establishing accounting policies, systems and practices; reviewing selected financial documents for compliance with City policies and procedures; maintaining historical records of the City's financial performance. 5of8 Revenue Management The revenue management program administers the City's treasury and revenue operations in accordance with established fiscal policies. Program Goals Developing and implementing effective and efficient revenue planning, monitoring and reporting systems which help assure the City's long-term fiscal health. Providing quality customer service. Protecting the City's cash assets from unauthorized use. Major Program Activities Utility billing. Maintaining the utility billing system, including customer files, records, and data; posting, billing and distributing water, sewer and surface water management invoices; reviewing internal controls and adhering to established utility billing procedures. Accounts receivable. Maintaining organization-wide accounts receivable system, including customer files, grant receipts, escrow accounts, and hotel-motel tax collections; reviewing internal controls and adhering to established accounts receivable procedures. Special Assessments. Maintaining the special assessment system; annually certifying special assessments to the County for collection with property taxes; responding to inquiries and requests for special assessment information. Cashiering. Providing support for cashiering services; reviewing, reconciling, and posting all cash receipting deposits; depositing and accounting for all banking deposits. Revenue forecasts and rate reviews. Preparing revenue forecasts and monitoring trends; assisting in establishing utility rates, and fees, and making recommendations to Council as appropriate. Investments, banking services, and debt service administration. Managing the City's investment portfolio in accordance with adopted policies and plans, including preparing cash flow projections, coordinating broker/dealer services, identifying appropriate investment vehicles and timeframes, and allocating interest earnings among funds in accordance with generally accepted accounting principles; administering the City's banking services contract; coordinating project financings and administering debt service obligations in accordance with bond covenants. 6 of 8 T. The Administrative Services department plans, organizes, leads, and monitors the activities of the two programs: Administrative Support and Human Resources. Administrative Services Goals Provide customer service both internally to the organization and externally to the public. Maintain official records of the City through effective records management systems. Perform the statutory duties of the Clerk's office. Administer elections. Establish and coordinate human resource programs, policies and procedures to ensure that City recruits and maintains a qualified workforce according to Federal and State laws. Major Activities Policy advice and guidance. Preparing and implementing policies and plans for effectively managing the City's human resources and preserving its long-term health; advising the Mayor, Council, City Administrator and management staff on personnel matters; maintaining official City documents; and performing the statutory duties of the Clerks office. Department leadership. Developing an organization that effectively builds and uses the talents and skills of each team member in achieving the department's mission, vision and objectives; communicating the City's mission, vision and goals to all team members and assuring that they guide actions and outcomes; developing departmental and employee work programs and monitoring performance; coordinating activities with other departments; maintaining a positive work environment and achieving a high level of employee morale; and representing department programs before the Council, public, staff and other public agencies. Department administration. Coordinating activities; administering elections; preparing and administering the City's permit and license programs, administering department personnel; and maintaining central files and official City records. Administrative Support The office administration program plans, organizes, leads, and monitors the activities of the office support activities to all departments. Program Goals Developing and implementing efficient and effective records management systems. Providing quality service to all the City's customers — both external and internal (this includes all City departments). Major Program Activities Records Management. Developing and maintaining central files. This is both hard copy files and laser fiche files. Maintain official City documents such as Ordinance Books, Resolution files, Official City Minutes, Agendas, posting and notices, calendars, and website information. Information Processing. Developing and administering all City permits, licenses, information requests, recreation registrations, and handle all City front desk counter activity. Elections. Assist in election administration and administer absentee ballots at City Hall. Office Support. Assist all City departments with meeting agendas, meeting and commission minutes, preparation of presentation materials, correspondence, and other support as needed. 7 of 8 Human Resources The human resources program coordinates the recruitment, selection, development, training and assessment of appropriate human resource needs for the City. Program Goals Provide recruiting, interviewing, and other personnel services for all City departments. Administer classification and compensation system for all employees in compliance with pay equity. Plan and coordinate in-house training programs for City staff. Administer City benefit plans. Establish and coordinate an in-house employee safety program to ensure OSHA compliance, employee education, and to provide for a safe work environment for the City's employees. Major Program Activities Recruitment and selection. Coordinate the recruitment process for open City positions. Ensure positions are posted, screen applicants, set up interviews, do background checks, and follow recruitment process through the hiring process. Work with various City departments to fill there employment needs based on approval of the City Council. Employee benefits and compensation administration. Ensure compliance with Pay Equity reporting. Periodically update and maintain current job descriptions. Coordinate market studies when appropriate. Administer all employee benefit programs. Implementation of, and compliance with Federal and State employment laws. Keep current with employment law and reporting. File mandatory reports by the proper deadlines. Labor negotiations. Work with City Administrator and City Council to negotiate union contracts. Processing of employee grievances. Take and investigate employee grievances and concerns. Decide the appropriate actions that need to be taken according to law and the City's personnel policy. Work with City departments and employees to resolve issues. Development of Personnel Policies. Review current policies, update and establish new policies as needed or mandated by law. Coordination of City Safety Program. Establish an employee Safety committee to ensure a safe work environment for employees and to protect the City. Coordination of City drug and alcohol testing program. Work with the provider and City departments to administer program. Follow thru with any violations according to City Policies and Union contract. 8 of 8 iT, EN HILLS MEMORANDUM DATE: November 29,2010 TO: Honorable Mayor and City Council Members FROM: Patrick Klaers, City Administrator Sue Iverson, Finance Director/Treasurer SUBJECT: Approval of the Finance Analyst Position Background On October 29, 2010, and November 10, 2010, the Personnel Committee met to discuss the addition of a Finance Analyst position in the Finance Department. As a result of these meetings, the Personnel Committee recommended the position be brought to the November 15th City Council worksession to be discussed with the full City Council. At the City Council's worksession on November 15th, the City Council reviewed and discussed this position and directed staff to put it on the November 29, 2010, City Council Meeting Agenda. Current Discussion The current Finance Intern, Kyle Howard, has been doing most of the work outlined in the attached position request. Kyle has managed to take on these duties as a result of both his Finance and Accounting degrees as well as his tenure with the City in the intern position. If we remain with an intern position, when a new intern comes on board, the Finance Director will again have to reassume most of the duties/work outlined in the position request which will create a backlog of work in the Finance department and will limit the amount of work that the City Administrator can delegate to the Finance Director. The position request basically outlines the duties of the position and the Personnel Committee is working on the final version of the job description. Due to the holiday schedule, staff will bring the final version of the job description forward at the December 6th Special City Council Meeting. City Council Meeting P:\Admin\Council\Agendas&Packet Information\2010\11-29-10 Regular\Packet Information\11-29- 10_Memo_Finance_Analyst.doc Page 1 of 2 Council Action 1. A motion to approve the position of Finance Analyst. 2. Motion to direct staff to finalize the job description and bring forward for Council Approval. 3. Motion to appoint Kyle Howard to the Finance Analyst position at Pay Grade 7, Step 1, effective immediately. City Council Meeting P:\Admin\Council\Agendas&Packet Information\2010\11-29-10 Regular\Packet Information\11-29- 10_Memo_Finance_Analyst.doc Page 2 of 2 It FINANCE ANALYST REQUEST Al HILLS Request Summary We have analyzed resource needs in accomplishing the Finance department workload and goals, evaluated options and developed the recommended resource addition of a Finance Analyst, including annual costs. Key Objectives 1. Provide coordination and facilitation of the financial plan and annual budget process. 2. Provide analytical support for fiscal planning, fiscal monitoring, policy development, policy compliance, budgeting and budget performance reporting. 3. Provide analytical support for Investment management and perform cash management activities such as; bank reconciliations, cash flow projections, and quarter reports. 4. Assume the maintenance of the financial data required by GASB 34 associated with the infrastructure and fixed asset reporting systems. 5. Provide improved internal controls. 6. Assume duties that have been delayed or deferred due to human resource constraints including implementing the capital project management, purchase order systems, EFT vendor payments, Sharepoint (intranet), and information technology projects. 7. Assist senior management staff in responding to workload backlogs. Additional Staffing Needed to Accomplish Department Mission, Goals and Objectives With the new upgrade of the accounting system (Springbrook), auditing standards, GASB statements, major capital projects, upgrades to the budgeting process, and other goals and initiatives, the Finance Department is not able to adequately address its core mission. Stated simply, accomplishing the mission of the Finance Department with the current staffing level is not sustainable. Meeting long-range planning, reporting and monitoring needs in all areas of the division's operations means increasing the analytical capacity of the Finance Department. Examples of duties and projects that would be assigned to the Finance Analyst continue to include: 1. Assisting in improving our customer service levels primarily by expanding our analytical abilities and decreasing the response time for fiscal policy advice and guidance. This includes reducing our response time on simple inquiries regarding budget preparation to improving our ability to timely employ complex cost analyses required in the development of the utility rates and other charges for services. 2. Scheduling the budget time frame and supervising the distribution of all budget material. Instructing and assisting department staff with established guidelines and completion of forms. Evaluating submitted departmental budget proposals as to fiscal impact and preparing reports analyzing and evaluation various budget proposals for administrative review. 3. Assist with the preparation and publication of the annual budget book in a timely manner (within two months of adoption by City Council). 4. Analyzing budget performance and preparing report of findings on revenues and expenditures and advising administration as to potential problems. 5. Scheduling and preparing required and requested financial reports for federal, state, grantor and other agencies. These reports include reimbursement requests and other reports required by the U.S. Department of Justice, Minnesota Public Facilities and Pollution Control Agencies, Minnesota Office of the State Auditor, Minnesota Department of Revenue and other agencies and organizations. 6. Coordinating and managing the time consuming task of maintaining the financial data mandated by GASB 34 related to infrastructure and fixed assets reporting requirements. 7. Perform cash management activities such as bank reconciliations, cash flow analysis, and portfolio management. 1 It FINANCE ANALYST REQUEST ARDEN HILLS 8. Implementing the much needed capital project management and purchase order modules in our financial system that have to this point in time been deferred because of workload constraints. 9. Setting up and maintaining the City Intranet site (Sharepoint) which to this point has been deferred because of workload constraints. 10. Assist the Finance Director with the IT duties and employee education on software issues. 11. Assume duties which promote an improved internal control system, facilitate financial transparency and contribute to safeguarding of the City's assets. Goal and Policy Links Finance Department Operating Program Goals 1. Developing and implementing efficient and effective financial policies, plans and reporting systems that help the operating departments achieve their objectives and assure the City's long-term fiscal health. 2. Protecting the City's assets from unauthorized use. 3. Effectively using the City's financial information technology resources in improving productivity, customer service and access to critical information. 4. Providing quality service to all of the division's customers - both external and internal to the organization. To view the Finance Department's organizational chart and for a brief description of the Finance Department's mission, vision, primary objective, and programs and services please see the accompanying attachments. Financial Considerations Adding a Finance Analyst in the Finance Department will cost $66,652 in 2011. The General Fund impact would be $13,330 as this position would reduce intern costs in the Finance department and this position is allocated across all funds as it provides general financial support as do the other positions in the Finance department. This position is currently included in the Preliminary 2011 budget in contingency. Stakeholders 1. Mayor, Council Members, senior management, and front-line staff in the Finance Division. 2. Employee Services. 3. Operating departments that benefit from Finance services. 4. Community as a whole that benefits from effective fiscal stewardship, accountability and financial transparency. Implementation 1. Hire current intern Kyle Howard January 2011 Alternatives Continue the Status Quo:The Finance Division will do the best it can to prioritize workload and respond to City Council and community needs. However, given staffing constraints, workload and projects that have already been deferred or delayed, maintaining the status quo will likely result in a reduction in Finance services to the community and organization from current levels, this would also mean that the audit findings for "timely reconciliations" would most likely return, final budget books would likely continue to completed late in the year and quarterly financial reporting would most likely continue to be late. While we continue to use interns, the training period as we replace them requires time and depending on how long we have them it also impacts what projects we can give them and how much expertise they develop. 2 EN HILLS MEMORANDUM DATE: August 26, 2013 TO: Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: 2014 Proposed Preliminary Budget Personnel Headcount Changes BACKGROUND Since 2009, the Finance department has had an intern as part of its budget and increased its headcount by one in 2010, with the hiring of the Finance Analyst. We have also used interns in Administration, Planning and Zoning and Engineering for the past three years as well as student workers. When Finance and Administrative Services was reorganized in 2010, Finance had been using 2 interns or 1.5 FTEs which we reduced to 0.5 FTEs when the Finance Analyst was added as a full-time position. With the addition of the Administrative Services staff, this increased the FTEs in the new combined budget to 0.85 FTEs which accounted for interns and student workers in Administration who helped at the front desk and with scanning and clerical tasks. See the Finance and Administration's Mission Statement and Organizational Chart attached. CURRENT SITUATION Using interns has become unproductive in the Finance and Administrative Services department except for "special projects" like last year's rate study. We have found that for those types of projects, we can direct them to work on a certain project and they can do the research and data compilation that takes workload off our regular staff; it does however, pose a problem with everyday processes and tasks as staff has to take considerable time to train them on our processes and monitor their work until they understand what they are doing. This is unproductive to our department as we can only keep them for a certain amount of time due to PERA laws, school schedules limit hours, and many times they are not available when we actually need them to do the work, it also puts us in a constant training loop. This leaves the permanent staff no time to work on other projects or to have the backup front desk coverage needed for meeting, training, special projects, and PTO schedules. Adding a part-time position of 20 hours a week would give us the capability to hire someone who wants a part-time schedule, would always be available on a regular basis. Once trained this person could do the repetitious tasks of inputting payroll, accounts payable, cash receipts, utility billing, scanning, front desk support, agenda packets, and general clerical support. Memo - City Council 2014 Proposed Preliminary Budget Personnel Headcount Changes 2 Our department has a number of tasks that it would like to accomplish; setting up vendor EFT payments, ACH utility billing payments, Fixed Asset Systems, scanning old files into laserfiche, updating policies, cleaning out old files in the basement, an Employee On-Line portal, and other goals that we are still working on as directed by the City Council. It is proposed that this position do the initial running of the utility bills so that the Accounting Clerk can then do the analysis and other tasks assigned to them. Another task would be to weekly code and input all the Accounts Payable, and bi-weekly input the payroll from timesheets which would leave the Accounting Analyst time to do the analysis on these items and also work on other tasks. This position could also backup at the front desk, do cash receipts, help with agenda packets/copying, scanning, website updates and other clerical tasks freeing up the Deputy Clerk's time to work on HR items,records, and other tasks. PAST PRACTICE In the 2008 budget, we did a temporary permanent position with the Recreation Programmer and in 2009 made this position permanent. In 2007, we hired a permanent Assistant Planner (or Planner I) guaranteeing at least one-year employment as we were anticipating TCAAP development at that time. As the past by, personnel changes were made and this position was eliminated as it was determined it was not needed at that time. In both cases, we did make a commitment to try it for one year and we reviewed during the next year's budget cycle. FINANCIAL IMPLICATIONS Since the primary tasks of this position would be Utility Billing, Accounts Payable, and Payroll— I would propose this position be split between the General Fund, Water Fund, Sewer Fund, and Surface Water Management. This would be a fair allocation considering the amount of invoices and headcount allocated to Public Works which is all four funds. Currently, the intern positions were allocated out with the overhead charge and charged to all funds based on the Finance and Administrative Services Department allocation charge. Below is a chart of the impact on this proposal to each fund, including the net effect on the General Fund when taking into account the revenue received from the overhead charges. Dept Budget Allocated Final 2013 Proposed Incr Cost/ Finance&Administrative Services 2013 Out 2013 Budget Costs 2014 Savings) Part-time Employee 0.00 FTE 0.5 FTE Temporary Employees 0.85 FTE 0.0 FTE Impact on Budget General Fund 17,224.00', $(10,483.00) $ 6,741.00 $ 6,671.00 $ (70.00) Cable 1,049.00 $ 1,049.00 1,049.00) Water Fund 2,890.00 $ 2,890.00 6,671.00 3,781.00 Sewer Fund 2,890.00 $ 2,890.00 6,671.00 3,781.00 Recycling 296.00 $ 296.00 296.00) Surface Water Mgmt 2,890.00 $ 2,890.00 6,671.00 3,781.00 EDA 215.00 $ 215.00 215.00) Engineering 91.00 $ 91.00 91.00) Risk Management 71.00 $ 71.00 71.00) Central Garage 91.00 $ 91.00 91.00) Total 17,224.00 $17,224.00 $26,684.00 $ 9,460.00 Memo - City Council 2014 Proposed Preliminary Budget Personnel Headcount Changes 3 OTHER DEPARTMENT CHANGES Planning and Zoning has increased their intern 0.5 FTE to a 1.0 FTE for the 2014 Budget. This has been done since we have experienced turnover in this department and we have a number of planning cases and it is unknown how much work will be required with TCAAP. Please note that the intern position has been adjusted to include PERA as required by law since the position will be over the 6-month temporary position classification. The implications on this are shown below: Dept Budget Allocated Final 2013 Proposed IncrCost/ Planning&Zoning 2013 Out 2013 Budget Costs 2014 Savings) Temporary Employees 0.5 FTE 1.0 FTE Impact on Budget General Fund 13,456.00 $13,456.00 $33,459.00 $ 20,003.00 Engineering has also added an intern to their budget for 2014. This department is allocated out based on actual time spent on projects and is recovered mostly through project costs and escrow, some does effect benefiting departments such as Public Works departments depending on time spent and overhead work that is done. The impact to most funds is minimal. Dept Budget Allocated Final 2013 Proposed Incr Cost/ Engineering 2013 Out 2013 Budget Costs 2014 Savings) Temporary Employees 0.0 FTE 0.5 FTE Impact on Budget Engineering Fund 12,918.00 $ 12,918.00 It, AlHILLS PERMANENT PART-TIME ACCOUNTING CLERK/OFFICE SUPPORT POSITION REQUEST Request Summary We have analyzed resource needs in accomplishing the Finance department and Administrative Services workload and goals, evaluated options and developed the recommended resource addition of a Permanent Part-Time Accounting Clerk/Office Support position and eliminating the Intern positions in both Finance and Administrative Services. Key Objectives 1. Provide clerical support to Finance staff to input payroll and accounts payable. 2. Provide clerical assistance for finance file maintenance and audit work. 3. Provide clerical support to Finance staff on routine utility billing duties. 4. Provide clerical support to City Clerk on routine maintenance of human resource and benefit records, records management, minutes, and agenda preparation. 5. Assist Finance and Administrative Services with special projects. 6. Provide improved internal controls. 7. Free up time for Finance and City Clerk to complete duties that have been delayed or deferred due to human resource constraints including implementing the capital project management, purchase order systems, EFT vendor payments, SharePoint (intranet), policy updates, records management, and information technology projects. 8. Assist senior management staff in responding to workload backlogs. Additional Staffing Needed to Accomplish Department Mission, Goals and Objectives With the new upgrade of the accounting system (Springbrook), auditing standards, GASB statements, major capital projects, upgrades to the budgeting process, and other goals and initiatives, the Finance and Administrative Services Department is not able to adequately address its core mission. Stated simply, accomplishing the mission of the Finance and Administrative Services Department with the current staffing level is not sustainable using interns as there is no continuity as the training period as we replace them requires time of current staff and depending on how long we have them it also impacts what projects we can give them and how much expertise they develop. This prevents current staff from being able to work on projects and Council goals. Meeting long-range planning, reporting and monitoring needs in all areas of the division's operations means increasing the clerical support capacity of the Finance and Administrative Services Department. Examples of duties and projects that would be assigned to the Accounting Clerk/Office Support position continue to include those previously done by interns: 1. Assisting in improving our customer service levels primarily by decreasing the response time to answer utility billing questions and data requests. This includes reducing our response time on simple inquiries regarding budget preparation to improving our ability to timely employ complex cost analyses required in the development of the utility rates and other charges for services as current staff would have more time to devote to these activities. 2. Assist with the preparation and publication of the City Council agenda packets and process to avoid current staff from working long hours or overtime. 1 lt iRZE .-HILLS PERMANENT PART-TIME ACCOUNTING CLERK/OFFICE SUPPORT POSITION REQUEST 3. Assist with routine input of accounting and payroll records, and the filing of financial and administrative records. This gives current staff more time to work on goals, procedures, policies, and to implement needed human resource and financial modules ( for example: capital project management, purchase order, and human resource modules in our Springbrook system that have to this point in time been deferred because of workload constraints). 4. Assistance in gathering information for preparing required and requested financial reports for federal, state, grantor and other agencies. These reports include reimbursement requests and other reports required by the U.S. Department of Justice, Minnesota Public Facilities and Pollution Control Agencies, Minnesota Office of the State Auditor, Minnesota Department of Revenue and other agencies and organizations. 5. Assisting with clerical support in the audit preparation which gives current staff more time to do analytical work. 6. Perform cash management activities such as bank deposits by improving internal controls. 7. Assisting in the publication of the Annual Budget and Capital Improvement Plan (CIP) books. 8. Assisting with the set up and maintenance the City Intranet site (SharePoint) which to this point has been deferred because of workload constraints. 9. Assisting the Director of Finance and Administrative Services and the City Clerk with the website and other IT duties and employee education on software issues. 10. Assume duties which promote an improved internal control system, facilitate financial transparency, and contribute to safeguarding of the City's assets, and the management of City records. Goal and Policy Links Finance and Administrative Services Department Operating Program Goals 1. Developing and implementing efficient and effective financial policies, plans and reporting systems that help the operating departments achieve their objectives and assure the City's long-term fiscal health. 2. Protecting the City's assets from unauthorized use. 3. Effectively using the City's financial information technology resources in improving productivity, customer service and access to critical information. 4. Providing quality service to all of the division's customers - both external and internal to the organization. 5. Providing quality customer service. 6. Protecting the City's cash assets from unauthorized use. 7. Maintain official records of the City through effective records management systems. 8. Establish and coordinate human resource programs, policies and procedures to ensure that City recruits and maintains a qualified workforce according to Federal and State laws. 9. Maintain City website, social media and communications. 10. Provide stability to the department with cross-training on essential functions and back-up in case of illness or a vacancy in a position. To view the Finance and Administrative Services Department's organizational chart and for a brief description of the Finance and Administrative Services Department's mission, vision, primary objective, and programs and services please see the accompanying attachments. 2 lt ARQEN HILLS PERMANENT PART-TIME ACCOUNTING CLERK/OFFICE SUPPORT POSITION REQUEST Financial Considerations Adding a permanent part-time Accounting Clerk/Office Support position in the Finance and Administrative Services Department will cost $26,684 in 2014. The General Fund impact would be a $70 savings as this position would reduce intern costs in the Finance and Administrative Services department and this position is allocated across all funds as it provides general financial and clerical support as do the other positions in the Finance and Administrative Services department. This position is currently included in the Preliminary 2014 budget. Stakeholders 1. Mayor, Council Members, senior management, and front-line staff in the Finance and Administrative Services Department. 2. Employee Services. 3. Operating departments that benefit from Finance and Administrative services. 4. Community as a whole that benefits from effective fiscal stewardship, accountability, financial transparency, and customer service. Implementation 1. Hire a permanent part-time Accounting/Office Support Position January 2014 Alternatives Continue the Status Quo: The Finance and Administrative Services Department will do the best it can to prioritize workload and respond to City Council and community needs. However, given staffing constraints, workload and projects that have already been deferred or delayed, maintaining the status quo will likely result in a reduction in Finance and Administrative services to the community and organization from current levels if the interns are removed completely, this would also mean that the audit findings for "timely reconciliations" would most likely return, final budget books would likely be completed late in the year and quarterly financial reporting would most likely be late. City Council goals for developing policies and procedures for records management, storing records on laser fiche, scanning and retention of historical documents in the basement, completing the operating procedures, forms and policies for human resources, personnel policy update, and technology use may continue to be delayed. 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