HomeMy WebLinkAboutCCP 05-21-2001-WS "7 1 7
It'
i EN HILLS
AGENDA
CITY COUNCIL WORKSESSION
CITY HALL
MONDAY,MAY 21,2001, 4:45 P.M.
City Philosophy
To provide a basic and necessary scope of quality services
through the innovative and purposeful use of resources.
4:45 P.M. 1. Call to Order
4:45 P.M. 2. Preliminary Presentation,2000 External Audit Report
■ Abdo, Eick&Meyers
5:00 P.M. 3. MnDOT/Ramsey County Presentation, (SRF,Ferroll Robinson)
Highways 96/10 and I-35W Intersection Update
5:30 P.M. 4. Mills Company—TCAAP Development
6:30 P.M. 5. Staff Discussion Items
a. Finance Department
■ 2002 Budget Discussion
b. Parks & Recreation Department
■ Parks,Trails & Recreation Comprehensive Plan, Community
Survey Results Discussion
c. Planning
■ Erosion and Sediment Control Ordinance (Approve Schedule)
d. Public Works Department
■ Pavement Management Plan (PMP)
7:00 P.M. 6. Council Comments
■ Councilmember Aplikowski, City Events Task Force, Revised
Budget Review Prior to May 29`h City Council Consent Action
• 7:30 P.M. 7. Adjourn
The above times may vary depending upon length of issue discussion.
City of Arden Hills • 4364 West Round Lake Road • Arden Hills,MN • 55112-5794
Phone(651)633-5676 • Fax: (651)633-7839 • www.ci.arden-hills.mn.us
A ..
Tentative May Meeting Schedule Tentative June Meeting Schedule
Meeting dates,times and locations are subject to change. Meeting dates,times and locations are subject to change.
Please contact City Hall for the most current schedule Please contact City Hall for the most current schedule.
May 2 Planning Commission 7:30 P.M. June 6 Planning Commission 7:30 P.M.
May 14 Council Meeting 7:30 P.M. June 11 Council Meeting 7:30 P.M.
May 16 Maple Grove Tour 2:30 P.M. June 18 Council Worksession 4:45 P.M.
May 17 Operations&Finance 7:00 P.M. June 21 Operations&Finance 7:00 P.M.
Committee Committee
May 19 Flower Garden Planting 9:00 A.M. June 23 Day in the Park All Day
Fiftieth Anniversary
May 21 Council Worksession 4:45 P.M. Tony Schmidt Park
May 22 Parks&Recreation 7:00 P.M. June 25 Council Meeting 7:30 P.M.
Committee
June 26 Parks&Recreation 7:00 P.M.
May 28 Holiday Committee
May 29 Council Meeting 7:30 P.M. June 27 Communications 7:00 A.M.
(Tuesday) Committee
May 30 Communications 7:00 A.M.
Committee
•
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price
6516360871 05!21/01 04: 19P P-002
v ..s
Willie J. Price
3471 Siems Court
Arden Hills, NN 55112
651.636.0869
May 21, 2001
Arden Hills City Council
City of Arden Hills
4364 West Round Lake Road
Arden I-Tills, Minnesota 55112-5794
Arden hills City Council:
This is a comment to the understanding I have of your response to the proposal from the
Operations and Finance Committee regarding the compliance with and enforcement of
Ordinance No. 181. First of all, I would like to thank each of you fbr your willingness to
utilize your time and talents for the betterment of the City of Arden Hills, T have lived in
this arca for more than twenty years and have seen the growth and maturity that has
occurred. Case in point is the number ol'locations for the city hall and the growth of the
staff over those years culminating; in the soon to be completed facility. The constant
challenge is to avoid special interest concerns and act always in the best interest of the
city. To say the least managing change often requires difficult decisions. Albert .Einstein
once said, "The world is a dangerous place, not because of those who do evil, but because
of those who look on and do nothing."
T would respectfully like to offer a suggestion for you consideration. For the record, 1 am
a homeowner with lakeshore property and a frequent user of Take Johanna. As 1
understand the facts, there is a valid city ordinance that is the responsibility of the city of
Arden Hills to enlbrce, repeal or modify. Because the ordinance has been ignored in the
past does not mean it should be ignored in the future. The provisions of the ordinance arc
clearly enumerated by signage at the public boat landing and at least once a year in the
Arden Hills Notes andJor the Lake Johanna Tmprovement Society newsletter. As I see it,
the problem is how to mark/identify the no wake area. Without a clear understanding of
where this area begins, it is unreasonable to expect compliance. I hope you share my
belief of the unacceptable option of ignoring the violators. Most ofus are aware of the
increased driving risk when the burs are getting out but there is a clear reference fbr
consequences when violators are caught with moving violations and/or driving under the
influence. I would chalIcngc each member of the council to estimate the various distances
while operating a watercraft. Watercraft operation has some ofthe more lenient
requirements for operators, yet the city of Arden Hills is expecting many operators to
monitor their own behavior by estimating distance.
•
Price 6516360871 0S/21/01 04: 19P P.003
Over the last twenty years, watercraft have become bigger, faster and more numerous.
Congestion and unsafe operation are problems on many lakes. This is an opportunity for
Arden Hills to be a leader and not
o a follower. 1Vly suggestion is that you place a limited
number of buoys and assess their impact. Right now we have no point of reference.
Rather, we have emotional speculation. I challenge you to gather factual data. After you
gather data, it is my recommendation you have a public hearing open to all residents of
Arden Hills because this ordinance impacts many who use the public boat landing in
addition to homeowners on Lake Johanna. An informal poll taken at a poorly attended
picnic or the annual meeting of the Improvement Society would ignore the impact of any
changes on other Arden Hills residents who utilize the lake. By waiting; until the picnic in
August you are de facto choosing to take no action this year. By placing some buoys as
soon as possible, you are providing a mechanism to gather data.
June 23'j is rapidly approaching, The city is inviting many people to Visit Lake Johanna
and share in our celebration. Let's capitalize on this opportunity to set the standard for
safe and considerate operation of watcrcratl on our precious natural resource.
Sincerely,
Willie J. Price
•
price GS18960871 0S/21/01 04: 19P P.001
Willie J. Price, CFP
3471 Siems Court T:651-636-0869
Arden Hills, Minnesota 55112 F:651-636-0871
FAX
Number of Pages, including this cover sheet.
Date: Z/zL/x2 l
+ To: Fax:
Comments:
���.5�" �/ do �iS ✓ � - ` �
•
UPDATED BUDGET- 50th ANNIVERSARY- May 21, 200
ACTUAL TOTALS
REVENUE TO DATE
PROJECTED REVENUE
CITY COUNCIL $25,000.00 $25,000.00
DAY IN PARK FUND $7,500.00 $7,500.00
SPONSORS $25,000.00 $30,000.00
CONTRIBUTIONS $7,000.00 $3,950.00
SALE ARTICLES $1,000.00
TOTAL PROJECTED REVENUE $65,500.00 $66,450.00
PROJECTED EXPENSES ACTUAL
Calendars delayed-01 $4,000.00
Proclamation Day-Feb 12 $100.00 $2,472.16
Town Hall Meeting $100.00
Promotion P R materials/T-shirts $4,000.00
Promotion-Give Aways $2,000.00
Promotion-For Sale $3,000.00
Day in Park
Permits no charge
Facilities
Parade $1,000.00
Transportation $1,600.00
Food I city sponsors
Contract:Food Games&Activities $5,500.00 $3,785.00
1G Entertainment-Music $5,000.00 $130.00
1' Utilities ?
Sanitation $1,500.00
Labor-staff $5,000.00
Fireworks $10,000.00
History Book $10,000.00
Video $5,000.00
Art Fair $18.73
Banners 1 year only $1,500.00 $843.48
Ion going $2,500.00 $1,848.40
City Hall Dedication
Business Luncheon $500.00
Open House $1,000.00
Banquet $3,000.00
Misc $800.00
TOTALS $65,500.00 $10,697.77
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44
I-35W North Corridor Design Study SRF Consulting Group, Inc.
Arden Hills City Council Work Session May 21, 2001
DEMOGRAPHIC GROWTH
• Assume 1-35W Corridor Coalition Growth Assumptions
2025
2000 2025 Corridor Growth (1)
Existing Metro Council Coalition 2000-2025
Population 166,500 191,500 194,500 17%
Households 64,000 78,000 80,000 25%
Employment 97,000 125,500 123,000 27%
• Highest level of development assumed in TCAAP site (Coalition Scenario #3)
Scenario#1 Scenario#2 Scenario#3
Households 4,323 1,885 4,570
Employment 2,165 2,211 4,032
• • Different Land Uses Generate Different Traffic Levels
Typical Trip Generation per 40 Acres
Commercial Area"
Office Park
Industrial Park
Townhouse/Condo
Single Family Residential
0 1000 2000 3000 4000 5000 6000 7000 8000
`Assumes mix of retail
and other commercial Vehicle Trips per Day
• Assumed land use in TCAAP area generates 60,000 trips per day
(Assumes 50 percent residential as single family, 17 percent of employment as commercial,
50 percent of non-commercial employment as office park, 50% of non-commercial
employment as industrial park)
I-35W North Corridor Design Study SRF Consulting Group, Inc.
Arden Hills City Council Work Session May 21, 2001
REGIONAL HIGHWAY ASSUMPTIONS
• Assumes Regional Transportation Plan expansion/improvement for 2025
• Additional through lane in each direction on 1-694 from 1-35W to TH 36
(including 1-35E common section)
• Additional through lane in each direction on TH 36 from 1-35W to 1-35E
• "Improvement" of 1-35W from TH 36 to Ramsey-Anoka County line
isassumed as one additional through lane in each direction
• "Improvement" of 1-35W from TH 36 to Washington Avenue is assumed as
one additional through lane in each direction
1-35W CORRIDOR ASSUMPTIONS/ANALYSIS
• 1-35W will warrant two additional through lanes in each direction from TH 36
to Lexington Avenue
• 1-35W will warrant one additional lane in each direction from Lexington
Avenue to 1-35E junction
• One additional lane is assumed in each direction from TH 36 to Washington
Avenue
• Even with two additional lanes, congestion will remain in peak hours
• High volume activity at 1-694/1-35W interchange requires directional
interchange
• High volumes of weaving at TH 10/TH 51/1-694 interchange warrant
separation of 1-694 through movements from TH 10 movements
1-35W North Corridor Design Study SRF Consulting Group, Inc.
Arden Hills City Council Work Session May 21, 2001
TH 10 "DIAGONAL" ANALYSIS
• Existing TH 10/CSAH 96 intersection operates over capacity in peak
• Even with additional lanes, 2025 volumes will exceed capacity
• Separation of TH 10 from CSAH 96 would eliminate congestion at that
intersection and enhance access opportunities for TCAAP area
• De-emphasizing "TH 10 Diagonal' would have only moderate effects on TH
10 volume
•
• NABDO
ABDO
C•EICK&
,dMEYERS LLP April 14,2001
Certified Public Accountants&Consultants
7241 Ohms Lane
Suite 200
Minneapolis,MN 55439
Members of the City Council
City of Arden Hills,Minnesota
We have audited the general purpose financial statements of the City of Arden Hills for the year ended December 31,2000
and have issued our report thereon dated April 14,2001.
Professional standards require that we provide you with the following information related to our audit.
Our Responsibility Under Generally Accepted Auditing Standards in the United States and Government Auditing
Standards
As stated in our engagement letter,our responsibility,as described by professional standards,is to plan and perform our audit
to obtain reasonable,but not absolute,assurance that the financial statements are free of material misstatement and are fairly
presented in accordance with generally accepted accounting principles in the United States. Our audit is designed to provide
reasonable assurance of detecting misstatements that,in our professional judgment,would have a material effect on the
financial statements taken as a whole. Consequently,our audit will not necessarily detect misstatement less than this
• materiality level that might exist due to error,fraudulent financial reporting or misappropriation of assets.
In planning and performing our audit of the general purpose financial statements of the City of Arden Hills for the year ended
December 31,2000,we considered its internal control in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and not to provide assurance on internal control. However,we noted
certain matters involving internal control and its operation that we consider to be reportable conditions under standards
established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of internal control that,in our judgment,could
adversely affect the City's ability to record,process,summarize and report financial data consistent with the assertions of
management in the financial statements.
A material weakness is a reportable condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions.
Our consideration of internal control would not necessarily disclose all matters in internal control that might be reportable
conditions and,accordingly,would not necessarily disclose all reportable conditions that are also considered to be a material
weakness,as defined above. However,we noted the following reportable condition that we believe is not a material
weakness.
Segregation of Duties
Our study and evaluation disclosed that because of the limited size of your office staff,your organization has limited
segregation of duties. A good internal control structure contemplates an adequate segregation of duties so that no one
individual handles a transaction from inception to completion. While we recognize that your organization is not large
enough to permit an adequate segregation of duties in all respects,it is important,however,that you be aware of this
condition.
• As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement,we
performed tests of compliance with certain provisions of laws,regulations,contracts and grants. However,the objective of
our tests was not to provide an opinion on compliance with such provisions. We noted no noncompliance with provisions of
laws,regulations,contract and grants.
612.835.9090 9 Fax 612.835.3261
MIN City of Arden Hills
April 14,2001
Page Two
Accounting Estimates
Accounting estimates are an integral part of the combined financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the general purpose financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most significant
estimate affecting the financial statements was depreciation on fixed assets.
Management's estimate of depreciation is based on estimated useful lives of the assets. We evaluated the key factors and
assumptions used to develop this estimate in determining that it is reasonable in relation to the financial statements taken as a
whole.
Significant Audit Adjustments
For purposes of this letter,professional standards define a significant audit adjustment as a proposed correction of the general
purpose financial statements that,in our judgment,may not have been detected except through our auditing procedures. We
proposed no material audit adjustments.
Disagreements with Management
For purposes of this letter,professional standards define a disagreement with management as a matter,whether or not
resolved to our satisfaction,concerning a financial accounting,reporting or auditing matter that could be significant to the
general purpose financial statements or the auditors'report. We are pleased to report that no such disagreements arose during
the course of our audit.
• Issues Discussed Prior to Retention of Independent Auditors
We generally discuss a variety of matters,including the application of accounting principles and auditing standards,with
management each year prior to retention as the City's auditors. However,these discussions occurred in the normal course of
our professional relationship and our.responses were not a condition to our retention.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
Other Matters
The following are areas that came to our attention during the audit that we feel should be reviewed:
General Fund
The fund balance in the General fund increased$33,896 during 2000. Actual revenue was greater than budget by
$193,499. The total variance represents 7.3%of budget. The area with the greatest variance was nonbusiness licenses
and permits with a variance of$135,491. Expenditures were less than budget by$412,539. The total variance represents
15%of budget. Total transfers out totaled$481,750,$298,000 more than budget.
Most of the general fund revenue comes from property taxes and property tax credits. They represent 70%of 2000
revenue. This type of revenue is received during the second half of the year. As a result,a reserve for working capital
needs to be established equal to about 35-45%of planned expenditures and transfers out. The City has excellent reserves
for working capital from several sources. The amount designated for working capital in the general fund is$613,638. In
addition to the fund balance in the general fund,the City can also draw working capital from one of several permanent
capital projects funds which total over$11,000,000.
•
City of Arden Hills
April 14,2001
t Page Three
It is important to maintain an adequate fund balance for the following reasons:
• Expenditures are incurred somewhat evenly throughout the year. However,property tax and state aid revenues are
not received until the second half of the year. An adequate fund balance will provide the cash flow required to
finance the General Fund expenditures.
• The City is vulnerable to legislative actions at the State and Federal level. In recent years,the State had adjusted the
local government aid and property tax credit formulas and implemented levy limits. An adequate fund balance will
provide a temporary buffer against those aid adjustments and levy limits.
• Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These
would include capital outlay replacement,lawsuits and other items. An adequate fund balance will provide the
financing needed for such expenditures.
• A strong fund balance has assisted the City in determining its bond rating. The City received an AAA rating from
Standard and Poors on its 1998 bond issue.
A surnrnary of the 2000 operations is as follows:
Variance
Favorable
Budget Actual (Unfavorable
• Revenue $ 2,653,044 $ 2,846,543 $ 193,499
Expenditures 2,745,840 2,333,301 412,539
Excess of Revenue Over Expenditures (92,796) 513,242 606,038
Other Financing Sources(Uses)
Operating transfers in 275,400 2,404 (272,996)
Operating transfers out (183,750) (481,750) (298,000)
Total Other Financing Sources(Uses) 91,650 (479,346) (570,996)
Excess of Revenue and Other Financing
Sources Over Expenditures and
Other Uses $ (1.146) 33,896 $ 35,042
Fund Balance,January 1 601,394
Fund Balance,December 31 $ 635 290
•
City of Arden Hills
April 14,2001
Page Four
14
A further detailed comparison of revenue and expenditures both graphically and as a table are as follows:
Percent Increase
of (Decrease)
Revenue Source 2000 Total 1999 From 1999
Property Taxes $ 1,971,659 69.27% $ 1,947,378 $ 24,281
Licenses and Permits 345,841 12.15 402,105 (56,264)
Intergovernmental 356,103 12.51 339,031 17,072
Charges for Services 50,752 1.78 29,460 21,292
Fines and Forfeitures 29,981 1.05 30,924 (943)
Other 92,207 3.24 77,023 15,184
Total Revenue 100.00% 2.825.921 S 20
2000 Revenue
Taxes
69.27%
i
Other
3.24% Fines License and Permits
1.05% Charges Intergovernmental 12.15%
1.78% 12.51%
•
City of Arden Hills
April 14,2001
Page Five
Percent Increase
of (Decrease)
Programs 2000 Total 1999 From 1999
General Government $ 588,463 20.92% $ 609,402 $ (20,939)
Public Safety 1,040,375 36.99 1,014,436 25,939
Public Works 245,064 8.71 240,443 4,621
Culture and Recreation 292,830 10.41 254,989 37,841
Capital Outlay 166,569 5.92 81,980 84,589
Transfers 479,346 17.05% 598,500 (119,154)
Total Expenditures
and Transfers $ 2,812.647 100.00% 2.799.750 j=LZL97=
2000 Expenditures
• Public Safety
36.99%
General Government
20.92%
Public Works
8.71%
Culture and Recreation
Transfers Capital Outlay 10.41%
17.05% 5.92%
City of Arden Hills
April 14,2001
MOA
Page Six
Special Revenue Funds
A summary of all special revenue funds and their December 31,2000 fund balances compared with the prior year
follows:
Fund Balance Increase
12/31/00 12/31/99 (Decrease)
Community Service $ 102,265 $ 250,154 $ (147,889)
Recreation Program (4,997) (2,531) (2,466)
Park 551,276 462,992 88,284
Cable TV 158,346 259,585 (101,239)
TCAAP 220,104 205,326 14,778
Insurance Deductible 150,049 122,935 27,114
Economic Development Authority (878,766) (984,858) 106,092
Total $ 298.2773= 1� L_Ll-5,J&
Community Service
This fund will provide for various parks,recreation and public safety needs in the community as determined by the
Council and permitted by statute.
Recreation Program
The summer playground activities of this fund were reclassified from the General fund in 1998. The expenditures
were in excess of revenue by$2,466. A transfer of$78,000 was needed to return the operations to near break even.
A deficit of$4,997 exists at year end.
Park
This fund is used to finance and plan future new park capital improvements.
Cable TV
The fund balance is expected to be used for cable equipment and programming activities at the new city hall.
TCAAP
The fund balance is expected to be used for future development implementation planning activities.
Insurance Deductible
This fund exists to pay deductible costs on insurance claims. The revenue will come from insurance dividends
received from the League of Minnesota Cities Insurance Trust.
Economic Development Authority
The Economic Development Authority had activity for the first time in 1997 and will account for tax increments
and projects within the TIF districts. The Development/Redevelopment TIF Capital Projects Fund was closed into
this fund in 1997. The Guidant loan is also recorded here and the forgivable portion of the loan will be written off
as the terms of the loan are met. The remaining balance is$205,194.
Debt Service Funds
The final payment of the G.O. Improvement Bonds of 1977,which were refunded in 1985,were fully paid by the escrow
• in 1997. This allows the remaining$117,272 fund balance to be used for any public purpose.
The Tax Increment Bonds of 1998 were issued in 1998. The debt service on the$3,100,000 obligation will be recorded
in this fund. Tax increment collections will provide the resources to pay the bonds.
MIN
City of Arden HillsApril 14,2001
;1Page Seven
Capital Projects Funds
A summary of all capital projects funds follows:
Fund Balance Increase
12/31/00 12/31/99 (Decrease)
Municipal Land and Buildings $ 2,394,207 $ 1,342,520 $ 1,051,687
Non-Assessable Road Improvements 1,418,649 1,324,805 93,844
Capital Equipment Sinking 152,771 142,382 10,389
Fire Equipment Sinking 385,942 274,530 111,412
Permanent Improvement Revolving(PIR)Fund 6,915,221 6,137,285 777,936
Total $ 11.266.790 $ 9.221.522 $ 2.045.268
Municipal Land and Buildings
This fund will be used to improve existing City buildings or provide for new buildings. The fund balance
increased$1,051,687.
• Non-Assessable Road Improvements
The fund balance of$1,418,648 at year end exists for the completion of future projects such as New Brighton
Road,West Round Lake Road,Highway 96 and County Road D.
Capital Equipment Sinking
Its purpose will be to accumulate resources to finance major equipment purchases. The activity in 2000 was
interest of$10,389.
Fire Equipment Sinking
The fund balance of$385,942 will be used for equipment replacement.
Permanent Improvement Revolving(PIR)Fund
The fund balance at year end was$6,915,221,of which$970,050 represents the amount of the unpaid advance to
the Economic Development Authority related to the acquisitions of the Indy Kiewicz property. Substantially all of
this advance is expected to be repaid to the PIR Fund from Ramsey County reimbursement and remnant parcel sale
proceeds. Interest income for 2000 was$75,042.
•
uu
City of Arden Hills
April 14,2001
Page Eight
• ��
I
Enterprise Funds
Water fund
A further detailed comparison of operations both as a table and graphically as follows:
Year ended December 31
Water Fund 1997 1998 1999 2000
Charges for services $ 999,386 $ 1,043,989 $ 1,058,483 $ 1,142,587
Operating expenses before depreciation
on contributed property 845,992 901,872 943,248 1,357,855
Income from operations $ 153.394 $ 142.117 $ 115.235 21 2 )
Transfer standby charges to the PIR Fund $ 72.598 $.74.122 .$78.528 57 49
Cash balance $ $R 1011 084084 $$ 1.167 755 97 4
Water Fund
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000 ■Revenue
$400,000 ■Income from operations
$200,000
$(200,000)
$(400,000)
1997 1998 1999 2000
The loss from operations in 2000 resulted from the implementation of the residential water meter replacement project.
This project is expected to be completed in 2001. The cash balance of the Water Fund is$997,742 and this represents
73%of 2000 operating expenses. The current level should be adequate to fund operations and meet repair needs.
•
City of Arden Hills
April 14,2001
Page Nine
Sewer fund
An analysis of the Sewer fund operations follows:
Year ended December 31
Sewer Fund 1997 1998 1999 2000
Charges for services $ 1,000,408 $ 1,091,586 $ 1,055,880 $ 1,040,518
Operating expenses 899,765 1,005,858 909,520 1,118,193
Income from operations 1__10O643 $ 85.728 11 360 77 6 )
Cash and investments $ 1.010.914 $$ 1.253.245-245 $ 1-308.721 1,404,465
Sewer Fund
$1,400,000
$1,200,000
$1,000,000
• $800,000
®Revenue
$600,000 ■Income from operations
$400,000
$200,000
$-
$(200,000)
1997 1998 1999 2000
The loss from operations in 2000 resulted from a significant sewer line rehabilitation project. A similar project
including the rebuild of Lift Station No. 8 will be undertaken in 2001. The Sewer Fund has a cash balance of
$1,404,465. This represents a reserve of 126%of expenses based on 2000 totals. This should be adequate for working
capital and other needs.
•
Ing
City of Arden Hills
April 14,2001
Page Ten
ip
Recycling Fund
A summary of activities over the last four years follows:
Year ended December 31,
Recycling Fund 1997 1998 1999 2000
Charges for Services $ 56,576 $ 51,880 $ 53,710 $ 54,145
Operating Expenses 69,701 68,748 68,055 71,650
Operating loss (13,125) (16,868) (14,345) (17,505)
Non-operating Income 21,003 21,664 19,490 23,379
Net Income $_ 7.878 $ 4,796 $5.145 5.874
Cash Balance 39.464 $ 44.685 55.830 2 67
Surface Water Management Fund
A summary of activities over the last four years follows:
Year ended December 31,
Surface Water Management Fund 1997 1998 1999 2000
Charges for Services $ 179,535 $ 185,084 $ 191,470 $ 190,824
• Operating Expenses 89,719 168,408 174,057 48,258
Operating Income $ 89,816 $ 16.676 17.413 142.566
Cash Balance $ 73.394 $ 107,731 $ 142.530 $ 311.955
Governmental Accounting Standards Board(GASB)Statement No.34,Basic Financial Statements—and
Management's Discussion and Analysis—for State and Local Governments
GASB Statement No.34 is the result of an almost decade-Prior effort by GASB to reexamine the financial reporting model
for state and local governments. The most notable change is the presentation of a set of highly aggregated,"full accrual"
financial statements. At the same time,however,the Statement retains many familiar features of current governmental
financial reporting, in particular fund-based financial statements.
State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast
number of changes in accounting and financial reporting. They will have to explain those changes to persons who are
unfamiliar with the particulars of accounting,much less the unique area of state and local governmental accounting.
The following are some specific areas that need to be addressed with the implementation of this new statement:
Timeline
GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's
governmental and proprietary funds,although earlier application is encouraged. For this purpose,revenues include all
revenues except for other financing sources and certain extraordinary items. The City is considered to be phase 3.
Therefore,the City is required to implement GASB Statement No. 34 for the calendar year ending 2004.
• Management's Discussion and Analysis(MD&A)
MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known
facts,decisions,or conditions. It presents short-and Prior-term analyses of the government's activities,compares current-
year results with those of the prior year,and discusses the positive and negative aspects of that comparison.
City of Arden Hills
April 14,2001
Page Eleven
Government-wide Financial Statements
The government-wide financial statements are(1)a statement of net assets and(2)a statement of activities. The statement
of net assets presents the government's financial position at a point in time(like a balance sheet does);the statement of
activities presents its activities during a period(like an operating statement does). These statements present highly
aggregated information for the overall government;they do not display individual funds or fund types. They also present
financial information in separate rows and columns for the(1)primary government's aggregate governmental activities,(2)
primary government's aggregate business-type activities,(3)total primary government,and(4)discretely presented
component units.
Capital Assets
Capital assets are tangible and intangible assets that are used in operations that have initial useful lives longer than one
year. They include land and improvements,easements,buildings and improvements,equipment,and works of art and
historical treasures. Capital assets also include infrastructure assets—normally stationary capital assets that can be
preserved for significantly greater number of years than most capital assets. Infrastructure assets include roads,bridges and
tunnels;water,sewer and drainage systems;dams; lighting systems; and buildings that are an ancillary part of a network of
infrastructure assets. Capital assets are reported in the statement of net assets at historical cost(or estimated fair value, if
donated)and net of accumulated depreciation. They are depreciated in the statement of activities over their estimated useful
lives.
Infrastructure Assets
GASB Statement No. 34 applies prospectively to all general infrastructure assets beginning at the effective dates of the
Statement(or earlier, if the statement is implemented earlier). Governments are also encouraged to apply the Statement
retroactively to all existing major general infrastructure assets at that time. However,phase 1,2 governments need not
retroactively report those assets until calendar year 2006,2007—four years after their required implementation of Statement
No. 34. Phase 3 governments are encouraged but not required to report major general infrastructure assets retroactively.
If there are inadequate records of the actual historical cost of existing general infrastructure assets,governments can
estimate historical cost. They also may limit retroactive application to only those major general infrastructure assets that
were acquired or significantly reconstructed,or that received significant improvements, in fiscal years ending after June 30,
1980.
The above gives you some general information on GASB Statement No.34 implementation. We intend to educate and
work with all of our clients in developing a plan to implement this new statement. As a result of implementing this
statement,there will no doubt be additional fees for our services. These expected increases will most likely result from
additional time spent in the areas of(1)training,(2)account structure modifications to provide information necessary to
prepare financial statements,(3)accounting for fixed assets,infrastructure assets and related depreciation,and(4)financial
statement preparation. The more that the City staff can do in the areas of fixed asset accounting and proper account
structure will help in reducing these costs. We will help you as much as possible to accomplish this.
This report is intended solely for the use of management and council. The comments and recommendations in the report
are purely constructive in nature,and should be read in this context.
Our examination would not necessarily disclose all weaknesses in the system because it was based on selected tests of the
accounting records and related data.
If you have any questions or wish to discuss any of the items contained in this letter,please feel free to contact us at your
convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation
extended to us by your staff.
LLP
April 14,2001 ABDO,EICK&MEYERS,LLP
Minneapolis Office Certified Public Accountants
r
CITY OF ARDEN HILLS
MEMORANDUM
DATE: May 17, 2001
TO: Joe Lynch, City Administrator
FROM: Terrance Post, City Accountant -99
SUBJECT: 2002 Budget Planning Discussion
Background
At the April 16, 2001 Council Worksession, staff requested Council direction regarding preliminary
planning boundaries for the 2002 budget. The direction staff received at that meeting was to prepare a
"zero" levy dollar increase for 2002 and also to cost and prioritize spending items not included in such a
zero levy increase baseline scenario.
Budget Parameters
Staff has responded to Council's baseline request by focusing on the General Fund No. 101. The
rationale is that other funds operating activities(with the exceptions of possible Recreation Fund No. 226
deficit subsidy requirements or TCAAP planning Fund No. 229 implementation planning funding
requirements)are not levy supported.
Adopted 2001 Budget Points of Reference
Adopted 2001 General Fund budget expenditures are $2,787,691. This expenditure level was, in part,
supported by a$2,025,092 net levy. Using this net levy as a springboard—a 2002,2.0%net levy increase
would result in $40,502 additional General Fund revenue; a 2.5%net levy increase would result in a
$50,627 additional General Fund revenue; and a 3.0%net levy increase would result in a$60,753
additional General Fund revenue.
Establishment of the 2002 General Fund Expenditure Baseline
A. Certain budgeted items in 2001 have been identified as either: (a)not being relevant(NR)for 2002
or, (b)being discretionary(D) in nature for 2002. Following is a listing of such items.
Department Description Amount Category
1. Mayor&Council 50 Anniversary Events $25,000 NR
2. Mayor&Council Day in the Park 7,500 D
3. Mayor&Council Employee Recognition Program 2,600 D
4. Administration Computer Equipment 25,000 NR
5. Planning&Zoning Planning Consultant Fees 5,000 D
6. 4364 West Round Lake Road All Departmental 56,770 NR
7. Streets PMP—Sealcoating 50,000 NR
8. Streets Replacement Dump Truck 55,000 D
9. Parks Maintenance Hard Surface Sealcoating 12,000 D
10. Parks Maintenance Capital—Vehicle 40,000 D
11. Parks Maintenance Capital—Playground Equipment 40,000 D
12. Operating Transfers Out To Land&Building No.408 183,750 D
150,000 D
13. Operating Transfers Out To PIR Fund No. 501
SUBTOTAL"A" $652,620
Memorandum, 2002 Budget Planning Discussion
Page Two
May 17, 2001
B. Staff is aware of additional items that will occur in 2002 regardless of the level of budgetary
constraint. Following is a listing of these items.
Area Description Estimated Increase
1. Mayor&Council Professional Fees $5,000
(Labor Contract Expires 12/31/01)
2. Elections Election Judge Labor 10,000
New Election Vote Tabulation Equipment 30,000
(4 Machines)
3. Legal Likelihood of Increased Civil Fees 10,000
(GBD—Horses/Vaughan Tower)
4. 1245 West Highway 96 New City Hall Facility 40,000
5. Police Assume 3%Contract Increase 19,000
6. Fire Assume 3%Contract Increase 5,000
7. Several Impact of Staff Reorganization:
Additional Operations Support Specialist 40,000
Additional.5 FTE CSR II 18,000
Additional Comp.—Deputy Clerk 10,000
Additional Director Admin. Services* 54,000
Less: Public Works Director (20,000)
(30%of Salary)
Less:Parks&Rec.Director (50,000)
(80%of Salary)
Staff Reorganization Subtotal(Fund No. 10 1) 52,000
8. Several General Inflation(est. 3%)
Equipment/Supplies 5,000
Salaries/Insurance 15,000
20,000
SUBTOTAL"B"$191,000
* Assume 25%of salary absorbed by TCAAP Planning and EDA.
C. Staff has also identified discretionary items that, if approved,would also put pressure on the levy
level.
1. Mayor&Council Day in the Park $9,700
($1.00/resident)
Mayor&Council Employee Recognition 2,600
2. Planning&Zoning Commissioner Training 1,000
3. Protective Inspections Increase PT to FT 17,000
Housing Resource Center 3,700
4. Streets Maintenance Capital—Dump Truck 55,000
5. Parks Maintenance Capital- 1996 Chev. l-Ton 38,000
Parks Maintenance Capital— 1995 Groundsmaster 24,000
Parks Maintenance Capital—Royal Hills Playstructure 38,000
SUBTOTAL"C"$189,000
Memorandum, 2002 Budget Planning Discussion
Page Three
May 17, 2001
D. Recap of Anal
2001 Adopted Expenditures $2,787,691**
A. Not Relevant/Discretionary Deducts <652,620>
B. Non-Discretionary Adds 191,000
C. Additional Discretionary Adds 189,000
SUBTOTAL $2,515,071
D. Funding Source for Election Equipment
(Capital Equipment Fund No. 411 serves
to net expenditure) <30,000>
SUBTOTAL $2,485,071
E. Add back of PMP in 2001 Levy Base 200,000
SUBTOTAL $2,685,071
F. Total Available for Transfer to
Land & Building($183,750 in 2001 Levy Base);
TCAAP Planning or Recreation Fund Subsidy 127,710
TOTAL $2,812,781
**2001 Adopted Expenditures<*.3 * 1.03 +Ex.>_($2,812,781)
CITY OF ARDEN HILLS
MEMORANDUM
DATE: May 15, 2001
TO: Mayor and City Council
FROM: Jennifer Chaput, City Planner
SUBJECT: Erosion and Sediment Control Ordinance (Schedule)
Planning Case#01-20, City of Arden Hills
Request
The City of Arden Hills requests a first review of a model Erosion and Sediment Control Ordinance
at the June 11, 2001 City Council meeting and a public hearing and adoption at the July 9,2001 City
Council meeting.
Background
On November 27, 2001, the City Council passed a resolution stating their commitment to adopt an
Erosion and Sediment Control Ordinance by July 1, 2001. The commitment and adoption of this
Ordinance was a requirement of the Metropolitan Council for approval of the 1998 Comprehensive
Plan Update.
As conditions of approval of the Comprehensive Plan update, the City Council must also adopt a
Water Management Plan by the end of the year. The consultants on this project, SEH, will be
meeting with staff this month to start that process. Finally, the City Council is also required to
review and adopt the final Comprehensive Plan by the end of this year. That is, the Comprehensive
Plan needs to be amended and re-reviewed to ensure that it now incorporates all changes that were
required over the last three years of review with the Metropolitan Council.
The Metropolitan Council suggested that the City obtain a model Erosion and Sediment Control
Ordinance from Ramsey County for review. This Ordinance is currently being circulated through
the appropriate staff for review and comment for presentation at the next Council meeting.
Recommendations
Staff recommends that the proposed Erosion and Sediment Control Ordinance be presented to the
City Council at the June 11, 2001 City Council meeting for a"first read". If acceptable at that time,
a public hearing will be held at the City Council meeting a month later(July 9, 2001) for "second
read" and adoption of the Ordinance.
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UPDATED BUDGET - 50th ANNIVERSARY - A ril 18,2001
ACTUAL TOTALS
REVENUE TO DATE
PROJECTED REVENUE
CITY COUNCIL $25,000.00 $25,000.00
DAY IN PARK FUND $7,500.00 $7,500.00
SPONSORS $25,000.00 $24,500.00
CONTRIBUTIONS $7,000.00 $500.00
SALE ARTICLES $1,000.00
TOTAL PROJECTED REVENUE $65,500.00 $57,500.00
PROJECTED EXPENSES ACTUAL
Calendars dela ed-01 $4,000.00
Proclamation Da - Feb 12 $100.00 $2,472.16
Town Hall Meetin $100.00
Promotion P R materials/T-shirts $4,000.00
Promotion - Give Awa s $2,000.00
Promotion - For Sale $3,000.00
Day in Park
Permits no charge
Facilities
Parade $1,000.00
Transportation $1,000.00
Food I city sponsors
Contract:Food Games & Activities $5,500.00 $3,785.00
Entertainment-Music $5,000.00
Utilities 1
Sanitation $1,500.00
Labor-staff $5,000.00
Fireworks $10,000.00
History Book $10,000.00
Video $5,000.00
Art Fair $18.73
Banners 1 earont $1,500.00 $843.48
on goin $2,500.00 $1,848.40
City Hall Dedication
Business Luncheon $500.00
0 en House $1,000.00
Ban uet $3,000.00
Other $800.00
TOTAL PROJECTED EXPENSES $65,500.00 $9,967.77
i
ANNIVERSARY EXPENSE WORKSHEETS#1 AS OF 4/18/01
ACTUAL ADDITIONS
t7—=BUDGET EXPENSES TOTALS
TO DATE
PROCALMATION DAY - 2/12/01 $100.00
PaperweiqhtsT $869,14
Invitations & Letters
Refreshments lHoliday Inn $941.10
-Facility $0.00
Proclamation& Frame $645.75
Photos $6.29
Nameta s $9.88
TOWN HALL MEETING $100.00 $0.00
CITY HALL DEDICATION $4,500.00
PUBLICITY&PROMOTION-Day in Park&Dedication Ceremon
Publici /Promotion $3,000.00
Promotion -Give Awa $2,000.00
Promotion- Sales $3,000.00
Volunteer T-Shirts $1,000.00
BANNERS $2,500.00
Artist/Banners $843.48
Brackets & Installation $1,848.40
CALENDARS $4,000.00
HISTORY
History Book $10,000.00
sponsorships
Video $5,000.00
Dis la $3,000.00
TOTAL 1 $38,200.001 1 $5,164.041
L L
ANNIVERSARY EXPENSE WORKSHEET#2 4/18/01
ACTUAL ADDITIONS TOTALS
BUDGET EXPENSES r
TO DATE
DAY IN THE PARK
Permits no char e 0
Animals - Petting Zoo $650.00 $650.00
Special Events America $2,500.00 $2,500.00
Mad Science of MN $635.00 $635.00
Ma ician $250.00
Unicycle Club $300.00
S latter Sisters $475.00
Switched At Birth $700.00
Extended hours $1,000.00
REI-canoes
Water Ski Show $300.00
Unic cle Show(plus) $400.00
MUSIC Monroe Gross'n $1,000.00
Vessel $400.00
Northern Lights $500.00
Barbershop $325.00
Harp
MV Alumni
misc $2,075.00
PARADE $1,000.00
ARTS&CRAFIFS
Letters/Posta e - L Ashbach $18,73
TEA IN TENT 1, 6 O
TRANSPORTATION
Transit Services Inc trolle $100.00 $100.00
Golf Carts 1 $200.00
Buses $126.00 hr- $750.00
Stillwater Trolle $1,000.00 $900.00
Other $500.00
SFTE
Biffs $200.00
AH Staff Labor $5,000.00
CITY FOOD $500.00
RREWORKS $10,000.00
MISC $3,050.00
TOTALS $27,300.00 $4,803.73
ACTUAL
BUDGET TO DATE
SHEET 1 $38,200.00 $4,803.73
SHEET2 $27,300.00 $5,164.04
TOTALS $65,500.00 $9,967.77