City Council

HOPKINSCITYCOUNCIL WORKSESSION AGENDA Tuesday,October8,2019 6:30pm Hopkins City Hall –Raspberry Room 6:30pm. Interlachen Park Streets - Edge Treatment Alternatives; Stanley 7:00p.m. 2020 Budget Update; Bishop Other Adjournment  Engineering Department CITYOFHOPKINS Memorandum To: Honorable Mayor andCouncil Members Mike Mornson, CityManager From: Nate Stanley, CityEngineer Date: October 4,2019 Subject: Interlachen Park Streets - Edge Treatment Alternatives PURPOSE Toprovide anupdate totheCityCouncil thatstaff hasbeen evaluating various edge treatment alternatives toconcrete curb andgutter foruseintheupcoming Interlachen Park reconstruction project. INFORMATION AttheSeptember 17,2019 citycouncil meeting apublic hearing wasconducted in advance ofordering final design forreconstruction ofstreets andutilities inthe Interlachen Park neighborhood. During thehearing some residents voiced opposition to theincorporation ofconcrete curb and gutter asthe edge treatment along roads. Council ordered thefinal design, butdirected staff toinvestigate alternatives tocurb andgutter. Council willmake adecision regarding whether concrete curb andgutter or analternative edge treatment willbeimplemented attheOctober 15,2019 meeting. Staff hasbeen working with Bolton & Menk andmeeting with residents todiscuss concerns, develop alternatives, and determine a process andcriteria forevaluation. Staff willbeproviding anupdate regarding thereview ofcurb andalternatives atthe work session. FUTUREACTION AttheOctober 15, 2019 CityCouncil meeting staff willrecommend anedge treatment forincorporation intothefinaldesign.  Finance Dept. CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: October 8, 2019 Subject: 2020 Budget Update PURPOSE To provide input and guidance for the 2020 Enterprise and Special Revenue Fund Budgets; 2020 – 2024 Equipment Replacement and Capital Improvement Plans; and 2020 tax levy. INFORMATION The attached presentation gives an overview of the Enterprise and Special Revenue Fund budgets; and Equipment Replacement and Capital Improvement Plans. FUTURE ACTION Approval of the Equipment Replacement and Capital Improvement Plans is scheduled for October 15th. The 2020 Tax Levy is scheduled for approval on December 3rd. 2020 Enterprise Fund Budgets Council Work Session October 8, 2019  2020 Enterprise Budgets Water 2019 2020 % age Budget Budget Incr (Decr) Revenues 2,168,556$ 2,256,004$ 4.03% Expenditures 2,168,556$ 2,235,098$ 3.07% Revenues over (under) Expenditures -$ 20,906$ 100.00% Consumption based on 2018 Actual Proposing 9.00% Rate Increase Previously Planned 6.76% 2020 Enterprise Budgets Projected based on 9 months  2020 Enterprise Budgets Sewer 2019 2020 % age Budget Budget Incr (Decr) Revenues 3,119,182$ 3,052,340$ - 2.14% Expenditures 3,067,143$ 3,025,741$ - 1.35% Revenues over (under) Expenditures 52,039$ 26,599$ - 48.89% Consumption based on 2018 Actual Proposing 4.1% Increase Previously Planned 5.57%  2020 Enterprise Budgets Previous 2020 Utility Budget Previous Rate Study Rate Study Proposal Water – 6.76% Increase Water - Flat Rate Sewer – 5.57% Increase 2.91 a month 34.92 - 2.97 a month - 35.64 Water - Consumption 2020 Proposal 5,250 gallons a month 2.97/$3.42/$3.93 Tiered Rates 200.80 - Water – 9.00% 3.03/$3.49/$4.01 Tiered Rates - 204.88 Sewer – 4.10% Sewer - Consumption 4,500 gallons a month 6.82/ 1,000 gallons 368.28 - 6.72/ 1,000 gallons - 363.42 Goal is no or limited 604.00 603.94 impact on utility user  2020 Enterprise Budgets Storm Sewer 2019 2020 % age Budget Budget Incr (Decr) Revenues 793,532$ 793,532$ 0.00% Expenditures 605,940$ 621,945$ 2.64% Revenues over (under) Expenditures 187,592$ 171,587$ - 8.53% No rate increases  2020 Enterprise Budgets Refuse 2019 2020 % age Budget Budget Incr (Decr) Revenues 1,009,267$ 1,006,206$ - 0.30% Expenditures 965,113$ 1,008,049$ 4.45% Revenues over (under) Expenditures 44,154$ ( 1,843)$ -104.17% No rate increases  2020 Enterprise Budgets Pavilion 2019 2020 % age Budget Budget Incr (Decr) Revenues 519,383$ 781,500$ 50.47% Expenditures 635,517$ 702,256$ 10.50% Revenues over (under) Expenditures ( 116,134)$ 79,244$ 168.23% Includes levy to provide cash for debt payments 2020 Special Revenue Budgets Council Work Session October 8, 2019  2020 Special Revenue Budgets Chemical Assessment 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 60,000$ 65,000$ 8.33% Expenditures 60,000$ 65,000$ 8.33% Revenues over (under) Expenditures -$ -$ 0.00% Reimbursed based on actual costs Increase in part-time salaries  2020 Special Revenue Budgets Economic Development 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 395,154$ 467,951$ 18.42% Expenditures 390,519$ 430,345$ 10.20% Revenues over (under) Expenditures 4,635$ 37,606$ 711.35% Levy at maximum of $367,951 Marketing, Artstreet, Transfer to Arts Center, Alley Improvements  2020 Special Revenue Budgets Parking 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 152,650$ 154,524$ 1.23% Expenditures 141,783$ 150,690$ 6.28% Revenues over (under) Expenditures 10,867$ 3,834$ -64.72% Monthly, quarterly & yearly rates increased by 3%  2020 Special Revenue Budgets Communications 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 255,235$ 238,014$ - 6.75% Expenditures 482,459$ 238,656$ - 50.53% Revenues over (under) Expenditures ( 227,224)$ ( 642)$ 99.72% Planning for a decrease to cable franchise fees 2019 included expenditures for City Hall  2020 Special Revenue Budgets Depot - Youth 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 127,100$ 117,000$ - 7.95% Expenditures 132,640$ 128,184$ - 3.36% Revenues over (under) Expenditures ( 5,540)$ (11,184)$ 101.88% Reduced revenue from rentals and cover charges  2020 Special Revenue Budgets Depot - Coffee Operations 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 235,500$ 190,412$ - 19.15% Expenditures 215,285$ 179,228$ - 16.75% Revenues over (under) Expenditures 20,215$ 11,184$ - 44.67% Reduced concessions revenue, part-time wages and concession supplies Limited Winter Hours (7:00 AM to 3:00 PM)  2020 Special Revenue Budgets Depot 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 362,000$ 307,412$ - 15.08% Expenditures 347,925$ 307,412$ - 11.64% Revenues over (under) Expenditures 14,075$ -$ - 100.00% Balanced Budget in 2020 Coffee Operations has been negatively affected by SWLRT Construction  2020 Special Revenue Budgets Arts Center 2019 2020 Percentage Budget Budget Incr (Decr) Revenues 988,582$ 1,260,611$ 27.52% Expenditures 1,005,600$ 1,125,836$ 11.96% Revenues over (under) Expenditures ( 17,018)$ 134,775$ 891.96% Preliminarily includes $400,000 Tax Levy Could reduce by $134,775 to maintain a balanced budget 2020 – 2024 Equipment Replacement Plan Council Work Session October 8, 2019  Overview 5 year plan, updated annually Equipment Replacement Fund included in Financial Management Plan  Overview Arts Center, HRA/ Dow Towers, and Enterprise Funds are included Directly Funded  Overview Funding Sources User Department Charges 581,591 in 2020, a 9% increase o 99.88% in General Fund o 0.06% in Economic Development and Communications Funds 280,000 Tax Levy in 2020  Overview Funding Sources Equipment Certificates 590,000 issued in 2018 1,600,000 included in 2023  Proposed 2020 Projects 2020 projects total $791,000 Information Technology -$ 244,500 Forestry -$ 195,100 Streets -$ 170,000 Police -$ 117,400 Building/ Equipment Services $35,000 Fire -$ 29,000  Proposed 2020 Increases 2020 increases total $99,276 Project removed or delayed -$ 153,924 Project added or advanced -$ 243,200  Proposed 2020 Increases Information Technology Mobile Computer Lab -$ 10,000 (Cancelled) Emergency Management Preparedness Employee Training Will look for grant funding Windows 10 Enterprise Software -$ 21,000 Bureau of Criminal Apprehension will require for Police  Proposed 2020 Increases Wheel Loader -$ 170,000 Would replace a 1990 Loader & 1989 Grader with 20 year useful lives Building Services Truck -$ 35,000 Would replace a 2006 Ford F-250 with 12 year useful life Riding Mower -$ 13,900 Would replace a 2004 Toro with 6 year useful life  Proposed 2020 Ending balance in Equipment Replacement Fund of $19,000  Proposed 2021 - 2024 Financial Software in 2021 – over $300,000 Cancelled) Fire Quick Attack Pumper/ Rescue Delayed from 2022 to 2023 Cost increased from $314,500 to $525,000 New style of truck that will better serve Hopkins 2020 – 2024 Capital Improvement Plan Council Work Session October 8, 2019  Overview 5 year plan, updated annually Integrated with Financial Management Plan  Overview Funds Included in FMP: Directly Funded Arts Center Water Capital Improvement Sanitary Sewer Park Dedication Storm Sewer Permanent Improvement Refuse Revolving Pavilion  Arts Center 106,350 of projects in 2020 Fund would be balanced with a $265,225 Tax Levy  Capital Improvement Funding Sources Tax Levy, $100,000 in 2020 Franchise Fees, $360,000 in 2020 Bond Proceeds, none planned  Capital Improvement 107,250 of projects in 2020 Police, Activity Center and Fire Hall Projected to end 2020 with $175,000 fund balance  Park Dedication Funding Sources Franchise Fees, $295,300 in 2020 Dedication Fees, Cold Storage in 2020? Bond Proceeds, nothing in 2020  Park Dedication 300,500 of payments in 2020 Capital Projects of $183,500 Valley Park Picnic Shelter, Shady Oak Beach improvements and Downtown Park rehab Bond Payments of $110,000 Cottageville, Valley & Oakes Park Skate Park Contribution of $7,000 End 2020 with negative balance in fund  Park Dedication Cottageville Park Phase II Name changed to Minnehaha Creek Overlook 60,000 of design work in 2020 Asking for $230,000 of support outside franchise fees  Park Dedication Downtown Park Rehab 40,000 of design work in 2020 Asking for $200,000 of support outside franchise fees in 2021  Permanent Improvement Funding Sources Bond Proceeds, $9.1 Million in 2020 Paid by tax levy, special assessments and transfers from Water, Sewer, & Storm Sewer Funds Grant funding received in prior years  Permanent Improvement Previously included projects First ½ of Interlachen Street Project $8.57M Pedestrian & Bicycle Access, Street Rehabilitation and Sign Management -$ 395K  Permanent Improvement New projects Central Business District Lighting -$ 100,000 City Street Lighting Upgrade -$ 110,000 11th Ave S Retaining Wall Removal & Slope Grading 150,000 (will be delayed) Hopkins Crossroads Trail Segments -$ 100,000  Pavilion Funding sources User fees, $481,500 budgeted in 2020 Tax levy, $300,000 in 2020  Pavilion 185,000 of projects requested in 2020 Indoor Turf -$ 90,000 Indoor Lighting -$ 12,000 Pavilion/ Central Park Sound System -$ 83,000 Core System/ Infrastructure -$ 29K Indoor Rink -$ 23K Outdoor Rink -$ 4K Warming House -$ 23K Circulation Area -$ 3K