The URL can be used to link to this page

Home My WebLink About04-09-13 Agenda Address: Chair: 1245 W Highway 96 James Ostlund (2014) Arden Hills MN 55112 Committee Members: EN HILLS Arlene Mitchell (2013) LL�, Phone: Katy Peters (2014) 651 792 7800 David Radziej (2013) Vacant Financial Planning and Analysis Vacant Website Committee Council Liaison: April 9, 2013 www•cityofardenhills.org David Grant 6:00 p.m. City Hall 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. Agenda CALL TO ORDER 1.APPROVAL OF THE AGENDA 2.MINUTES 2.A.Minutes Documents: 11-07-2012 (2).pdf, 11-15-2012 (2).pdf, 12-04-2012 (2).pdf 3.UNFINISHED AND NEW BUSINESS • 3.A.Work Plan - City Council Request Documents: MEMO.pdf 4.REPORTS A. Reports from the City Council B. Financial Planning and Analysis Committee Comments and Requests ADJOURN A quorum of the City Council may be present at this meeting. • MINUTES • EN HILLS FINANCIAL PLANNING&ANALYSIS COMMITTEE Tuesday,November 07,2012 6:00 P.M. Council Chambers,Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT:Jim Ostlund;Arlene Mitchell;David Radziej;John Braun;David Grant,Council Liaison MEMBERS NOT PRESENT:Katy Peters OTHERS PRESENT:Kyle Howard Call to Order 1. APPROVAL OF THE AGENDA Motioned:David Radziej Seconded:John Braun 2. APPROVAL OF September 11,2012,MINUTES Motioned:David Radziej Seconded:John Braun 3. UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study Kyle Howard presented to FPAC how the current rate structure is set up and the historical data from the past 3 years.FPAC then proceeded to discuss possible changes and how the rate structure could be changed to better promote conservation.It was asked that staff provide 3 new tiers for FPAC to review at the next meeting.These tiers were as follows;0-10,000 10,001-20,000 20,001-infinity;0-5,000 5,001-35,000 35,001-infinity;0-5,000 5,001-30,000 30,001-infinity.These tiers were formed by looking at the historical data over the past 3 years(2009-2011),and looking for the natural peaks and valleys in the data. Kyle Howard then presented to FPAC how the current cash flow model was projecting cash flow for the Utility Funds. The model showed that with the current system Water and Sewer are on track with the 2008 rate study projections.FPAC was then presented the Capital Projects for the next 15 years, which are currently being work on by the Council.These projects were further discussed and reviewed on how they affected the cash flow of the Utility Funds directly. 4. REPORTS A. Reports from the City Council Mayor Grant explained the developments to the TCAAP property and how the County is stepping up to take the leading role in the purchase of the land.He also stated that the Council has had a meeting to discuss the development but they are still working on the details.Then he talked about the former Holiday Inn property and how the possible development of that property will have 1,2 and 3 bedroom apartments.Council also has approved a micro brewery to be located down by Red Fox road. • City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES • 76iRZE.N HILLS 5. ADJOURNMENT Motioned:Jim Ostlund at 7:30 pm. Seconded:Arlene Mitchell Jim Ostlund,Chair Susan K.Iverson,Finance Director i • City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES EN HILLS FINANCIAL PLANNING&ANALYSIS COMMITTEE Thursday,November 15,2012 6:00 P.M. Council Chambers,Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT:Jim Ostlund;Arlene Mitchell;David Radziej;John Braun MEMBERS NOT PRESENT:Katy Peters,David Grant,Council Liaison OTHERS PRESENT: Sue Iverson,Kyle Howard Call to Order 1. APPROVAL OF THE AGENDA Motioned:David Radziej Seconded:Arlene Mitchell 2. UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study The first thing covered at the meeting was the new tier structures that the FPAC requested at the November 7th meeting.These new tiers were entered into the Excel model to calculate total estimated • revenue for the Utility Funds.After reviewing the new tiers FPAC moved on to looking at the actual cost associated with each level of the tiers.Discussion started out covering what the cost to the City was to purchase water from Roseville and projected increases in future years.It was stated that the City currently pays$2.40 per 1,000 gallons for water purchased from Roseville.This is a combination of the cost that Roseville pays St.Paul for the water,plus overhead Roseville charges the City. Sue Iverson noted that Roseville will be increasing the overhead they charge by$8,000 next year. Staff would continue working on cost for each tier to generate the proper cash flows to cover the capital expenditures and operating budget. The next issue FPAC revisited was the new tier structures.These tiers showed that there was not any major benefit gained by creating the new tiers.The committee determined that staff should use the current tier system and add a new level of 0-10,000 gallons.This structure was preferred since the current rate structure is working and the goal is to help the low end users.The committee also felt that the major change in tier structure might be a too dramatic of a change at this time. 3. REPORTS A. Reports from the City Council No reports from the Council. City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES • EN HILLS 4. ADJOURNMENT Motioned:Jim Ostlund at 7:00 pm. Seconded:Arlene Mitchell Jim Ostlund,Chair Susan K.Iverson,Finance Director 411 City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES • EN HILLS FINANCIAL PLANNING&ANALYSIS COMMITTEE Tuesday,December 4,2012 6:00 P.M. Council Chambers,Arden Hills City Hall CALL MEETING TO ORDER AND ROLL CALL The meeting was called to order by Jim Ostlund at 6:00 pm. MEMBERS PRESENT:Jim Ostlund;Arlene Mitchell;David Radziej;Katy Peters MEMBERS NOT PRESENT:John Braun;David Grant,Council Liaison OTHERS PRESENT: Sue Iverson,Kyle Howard Call to Order 1. APPROVAL OF THE AGENDA Motioned:David Radziej Seconded:Arlene Mitchell 2. UNFINISHED AND NEW BUSINESS A. Continue Discussion of Utility Rate Study Further discussion was held on the rates for each tier.It was decided that 0-10,000 at$2.50 per thousand; 10,001-35,000 at$3.25,and 35,000—infinity at$5.75 was the preferred option.Next the meter fee was discussed.This fee was decided at$22.50,so approximately 50-60%of the cities fixed cost would be covered.This gives the City favorably projected cash flows for the Water Fund and covers the planned projects in the City's 5 Year CIP. Discussion was also held on the Sewer and Storm Water Funds. Staff explained that the Sewer Fund is expected to go into the negative for 3-4 years,mainly due to the large number of capital projects which were moved up in the CIP to take advantage of favorable pricing.The model is projecting that cash flow will recover without a rate change,based on the assumptions and rates from the 2008 study.Staff also recommends that no changes be made to the rates at this time. Storm Water was also projected to drop into a negative cash flow within the next two years.Staff recommended that this fund will need to have the rates adjusted to correct the cash flow.The long term forecast model also shows that the fund will go negative and stay negative without change. The reason cash will run negative is due to major road construction projects in the upcoming years.Staff recommended that an increase of the rates over the next 2 years would allow the fund to rebound and return to a positive cash flow.An increase of 15%for the next 2 years and then 3% for years after are what staff has recommended. 3. REPORTS A. Reports from the City Council No reports from the Council. • City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us MINUTES • - EN HILLS 4. ADJOURNMENT Motioned:Jim Ostlund at 7:00 pm. Seconded:David Radziej Jim Ostlund,Chair Susan K.Iverson,Finance Director 411 S City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.792.7800•Fax 651.634.5137 www.ci.arden-hills.mn.us DEN HILLS MEMORANDUM DATE: April 09, 1013 TO: Financial Planning and Analysis Committee FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Work Plan —City Council Request Background . At a worksession held on February 18, 2013, with the City Council, the council requested that the Financial Planning and Analysis Committee research ways for the City to collect fees or revenues from non-profits and tax exempt properties. They would like a report by the end of the year, but November when the final budget is discussed might be something to shoot for. This could also involve meeting with the Council to determine the real objective, or Mayor Grant may be able to guide this discussion at our meeting. Requested Action The committee will discuss the project and determine next steps. •