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4. Adopt 1995 Budget Including Resolution Establishing 1995 Tax LevyMEMORANDUM CITY OF CHANHASSEN 690 COULTER DRIVE 0 P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: December 8, 1994 SUBJ: 1995 Budget Including Tax Certification At the last budget work session, the City Council instructed staff to review the items circled by Councilman Senn in his budget book and to respond to those. Attached please find the responses as generated by Charles and Scott. I believe their re supports the increases as currently exist in the budget document. Of the items reviewed where reductions could occur ($7,700), the majority of these proposed cuts are items which I believe woul have been realized as cost savings whether the re- review occurred or not, i.e. the lion's share of the�propo d cuts come from training courses in public ' safety which we have just learned will not be available h0995. Following Monday night's meeting, Mayor Chmiel visited with me restating his desW to ensure that the 1995 budget did not produce a property tax increase. If we could meet that Aective, he *uld be prepared to vote on the budget. ' Although the Public Safety/Public Works re +eviews did nofroduce the type of savings necessary to achieve a tax reduction (approximately $1Qj000 would be retuired to be cut), Pam's efforts to reexamine the budget did prove to be qu*t+e fruitful. Specifically, Pam had never seen compensated absences/interest expense shown as an ;operating budget item ecifically, these two transactions do occur, but they occur as general led entries. Again, we do rop to record compensated absences as a liability, but they are not an exfise in that the city will not see that liability occur until such time as an employee leaves having vacation days on the books, etc. Tie total savings generated through ' Pam's efforts is $76,000 for a total identifiable reduction of $83,100. One area which was not discussed at our last budget work seWbrtRva -' st It �K` ^a%th holding a special referendum in 1995 for park /tram acqui ' -A* Sx l :; "WK t 1 ,21,000. That ' amount, when coupled:th the $83,700 previously discussed, would achieve the 1Vtir's objective of assuring that the 1995 budget dMot produce a tax increase. If the $2l,000 _,Js, as tained in the budget and the $83,700 cut, the tax ine ases cr rt�d be W . y4, �e. pA doing from a tax rate of 25.5 to 25.7 or 25.8. Staff would recommend aprovz the 1995 budget with the $83,700 of additional cuts (park referendum ?). The council ou note that this motion would be a motion approving "a resolution adopting the 1995 budge, establishing tax levies for 1995" (see sample resolution from 1994 - attached). If the council is not ready to vote and additional work sessions are needed, we should select the date(s) Monday night. L i CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: December 13, 1993 RESOLUTION NO: 93 -126 ' MOTION BY: Wing SECONDED BY: Dockendorf ' A RESOLUTION ADOPTING THE 1994 BUDGET, AND ESTABLISHING TAX LEVIES FOR 1994 ' BE IT RESOLVED By the City Council of the City of Chanhassen that the 1994 Budget for the City of Chanhassen is hereby adopted in the aggregate revenue and expenditure amounts of $ 7.906.317 1 and $ 7.887,589 , respectively, such being further detailed in the 1994 Budget document which is hereby made a part hereof; and ' BE IT RESOLVED That the following sums of money have been scheduled as "Certified Levies" as a part of the bond resolutions originally passed for such bond debt - such to be levied in 1993 for collection in 1994 upon the taxable property in said City of ' Chanhassen and as shown in this resolution; and BE IT RESOLVED That the City Council of the City of ' Chanhassen hereby determines that certain bonded indebtedness levies are hereby adopted to meet current and future bond requirements and that the County Auditor is hereby authorized and directed to increase or reduce the previously adopted bonded debt levies as shown on the attached Tax Levy Certification document. BE IT RESOLVED That the City of Chanhassen hereby establishes a revised 1993 Budget as the official control for the City of Chanhassen for 1993 as shown in the before hereto adopted 1994 Budget under the column shown as "1993 Estimated" Budget for each of the operational funds of the City. NOW, THEREFORE, BE IT RESOLVED That the City of Chanhassen hereby authorizes the County Auditor to levy the amounts, as shown ' on the attached Tax Levy Certification document, upon taxable property in the City of Chanhassen, in accordance with the heretofore established budget and bonded debt findings in 1993, ' for collection in 1994, as setforth on the attached Tax Levy Certification document. Passed and adopted by the Chanhassen City Council this 13th day of December 1993. ATTEST: Don Ashworth, C -Clerk/Manager D na I f; d J. e , Mayor ' YES NO ABSENT Dockendorf Chmiel None Mason ' Senn Wing a TAX LEVY CERTIFICATION Increases 1994 Certified (Decreases) Taxes To Levy to Levy Be Levied Fund General Fund $ 2,644,100 -0- $ 2,644,100 Special Revenue Funds Fire Relief 32,000 -0- 32,000 Recycling Program 122.000 -0- 122.000 154,000 154,000 TOTAL OPERATIONAL TAX LEVY $ 2,798,100 -0- $ 2,798,100 General Bonded Debt Municipal Building Bonds 177,900 - 14,500 163,400 1988 Fire Equipment Bonds 126,000 +9,000 135,000 Park Bonds of 1989 96,900 - 14,000 82,900 Total General Obligation Bonded Debt 400,800 - 19,500 381,300 Special Assessment Bonded Debt Refunding Bonds 1983 85,000 - 85,000 0 G.O. Bonds of 1986 190,000 - 55,000 140,000 G.O. Bonds of 1990 42,700 -0- 42,700 Improv. Bonds of 1991 133,000 133,000 Total Special Assessment Debt Funds 450,700 - 135,000 315,700 Equipment Funding 320,300 0 320,300 TOTAL DEBT LEVY $ 1,171,800 $ - 154,500 $ 1,017,300 TOTAL LEVY $ 3,969,900 $ - 154,500 $ 3,815,400 LJ I MEMORANDUM 1 CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Don Ashworth, City Manager FROM: Charles Folch, Director of Public Works /City Engineer Ck DATE: December 6, 1994 SUBJ: Proposed 1995 Public Works Budget It is my understanding from Monday night's special budget meeting that a request was made for specific line item justification on a number of items within the 1995 Public Works Department budget. The list of line items is rather lengthy; therefore, I will provide a brief and straight -to- the -point explanation for each item accordingly. GENERAL FUND 101 -131 ENGINEERING 4140 Supplies- Vehicles - The proposed $200 over that budget for 1994 is based on the current expenditures for 1994 and the fact that additional supplies will be needed to outfit the replacement engineering vehicle expected in 1995. 4310 Telephone - A $100 increase is proposed over the $900 amount budgeted for 1994 for this item. The October year -to -date expenditure for this account is approximately $40 over the $900 amount budgeted for 1994; therefore, the-`:1995 &quest has he increased accordingly. 4340 Printing and Publishing - This is another line item where the 1994 budgetary amount is expected to be exceeded based on year -to -date expenditures as of this fall.:` 'Expenditures in this account are directly related to the number of capital., improvement projects the City undertakes each year. Neighborhood meeting and publiclearing meeting notices must be published in the newspaper and mailed to individual property owners for street reconstruction, utility reconstruction and SWMP improvement projects which are expected to take place in 1995. 4360 Subscriptions and Memberships - A $200 increase is proposed over that budgeted for 1994 based again upon current expenditures this fall which will exceed the 1994 budgetary amount. Expenditures in this account are for memberships to professional organizations and professional Don Ashworth , December 6, 1994 Page 2 technical journals which are invaluable in providing staff with the latest state -of -the -art I technology and methods in performing job tasks. 4703 Office Equipment - The total budgetary amount of $2,500 for this account is specified for I n additional hanging file cabinet. As I discussed during my previous public works budgetary presentation to the Council, the current hanging file cabinet is overcrowded with the mylar record drawing documents for the City and, as such, this is causing some of the documents to become , damaged. Each year the City administrates more than 30 public and private projects which result in mylar drawing documents (five to fifteen 24" x 36" plan sheets per project) which are added to the file. In short, the department is overdue in getting the new hanging file cabinet. The cost , to remake record drawings would certainly exceed the cost of acquiring the additional hanging file cabinet space. 4933 Sales Tax on Purchases - The increase shown on this item is based upon additional capital purchases forecasted within the department budget. It is very important to note that while specific line item increase'; have been addressed, there are also other line item decreases not discussed which result in the overall engineering department budget, excluding personnel services, decreasing in 1995 versus 1994. , GENERAL FUND 101 -132 STREET MAINTENANCE I 4120 Supplies- Equipment - $ 32,000 was budgeted in 1994 for this account. As of the October year -to -date expenditure information, this account has incurred $36,000 in expenditures. This overrun on the 1994 budget is due in part to underestimating costs associated with supplies needed for the new equipment purchases in 1994 and the fact that a couple of pieces of equipment were retrofitted in -house to improve and/or expand their use in street department operations. The 1995 budget increase takes into account amounts forecasted for new equipment purchases in 1995, i.e. tar kettle, roll packer, etc. ' 4140 Supplies- Vehicles - $ 30,000 was budgeted for 1994. A $2,000 increase is requested for 1995. This takes into account the two plow trucks scheduled for replacement in 1995. 4150 Maintenance Materials - $ 52,000 was budgeted for this account in 1994. A $2,000 increase is requested for 1995 primarily to take into account the additional streets added during 1994 which the City will be required to plow, sand, patch, crack fill, etc. It should be noted that this account is very difficult to project since winter weather conditions can have a volatile affect on dollars expended from this account. L n L ' Don Ashworth December 6, 1994 Page 3 4170 Motor Fuels and Lubricants - $31,00 was budgeted for 1994. The 1995 request is for a $3,000 increase. This increase takes into account additional street mileage for plowing, sanding, maintenance, etc. This account is also very sensitive to the winter weather conditions (i.e. the number of snow storms and icing conditions) which will have a significant affect on how much ' fuel is used in the plow and sanding fleet. 4240 Uniforms and Clothing - In 1994 $1,800 was budgeted for this account. The 1995 budget requests and increase of $300. The additional amount is directly related to the additional street maintenance worker added to the department during the summer of 1994. ' 4310 Telephone - The 1994 budgetary amount for this account was $450. The October year -to- date expenditures for this account indicate that the 1994 budgetary amount will be exceeded. Therefore, the 1995 budget request has been correspondingly increased to take into account ' current levels of monthly phone service charges. 4520 Repair and Maintenance of Vehicles - $3,000 was budgeted for this account in 1994. The ' October year -to -date expenditure information indicates that this budgetary amount will be exceeded this year. This account is very difficult to forecast since no one knows when ' breakdowns will occur with the vehicles. In any case, the 1995 request of $5,000 takes into account the aging of the City's fleet of vehicles. ' 4530 Repair and Maintenance of Equipment - The 1995 requested amount is $1,000 above that requested for 1994. This again is a very difficult account to budget for based on expected failures and breakdown in equipment; however, given the age of some of the equipment and the ' fact that the number of pieces of equipment in the department increase each year, it is likely that this budgetary item will experience a corresponding increase. 4540 Repair and Maintenance of Streets - As I mentioned in my formal presentation to the City Council, the Pavement Management Program which was completed in 1992 forecasted that, based on the current number of City streets, approximately $150,000 each year would need to be dedicated to repair and maintenance of City streets (i.e. overlays and sealcoating) to be able to address each street within the City on a 5 -year cycle. Over the past two years, favorable bidding has allowed the work to be completed within a budgetary amount of $120,000; however, the 1994 street repair program had to be scaled back since bids were not as favorable. Therefore, to accomplish the needed work on an annual basis, it is recommended that the budgetary amount be set at $150,000 as recommended with the Pavement Management Program. 4703 Office Equipment - The 1995 request for this account is $500 which is a cost - sharing amount to purchase a computer at the shop. The computer would be used to maintain the City's street light and sign inventory along with pavement management data collection. Don Ashworth December 6, 1994 Page 4 It is important to keep in mind that "inflationary" type increases in this budget will not keep up with the dynamic growth in the City's population and expected service levels. As I mentioned previously, this department's budget can also be significantly impacted either positively or negatively depending upon the type of weather conditions experienced during the winter months. GENERAL FUND 101 -135 STREET LIGHTING AND SIGNALS 4320 Utilities - The 1995 budget request for this item is approximately a $10,000 increase over the 1994 budget amount of $180,000. This increase is in direct relation to the increase in residential subdivisions which add a significant number of street lights each year for which the City pays monthly power costs. 4410 Rental - Equipment - An increase of $100 is requested for the 1995 budget for this item. This is considered to be a relatively small budgetary item which is very difficult to predict its usage since it is unknown what types of situations may come up which would require renting special equipment accordingly. ' Repair and Maintenance of Equipment - This is a new budgetary item for 1995 estimated at $5,000 which is intended to pay for the new traffic signal annual maintenance contract which the City will take quotes on. During this past year any repairs or problems with the traffic signals were taken care of under the improvement project warranty period. 4933 Sales Tax on Purchases - The increase requested for this item is in direct relation to the sales tax to be paid on the capital purchases within the department. GENERAL 101 -137 CITY GARAGE 4110 Supplies- Office - The 1995 budget request for this item takes into consideration the 1994 October year -to -date expenditures for this account. The addition of the public works secretary mid -year of 1994 will have an affect on this account due to the increased usage of toner, paper, photocopying, and other secretarial services. 4120 Supplies- Equipment - The 1994 total for this account is expected to be approximately $2,000. The 1995 request for this account is $2,500 and again takes into account additional amounts needed for the garage equipment and public works secretary. 4140 Supplies- Vehicle - A $250 increase is requested for this account which takes into consideration some minor retrofitting which would need to be done with the garage department 7 7 L F L 7 ' Don Ashworth December 6, 1994 Page 5 inheriting a used public safety vehicle. In this manner, the garage does not need to ask the Council for a total new vehicle. 4300 Fees for Service - A nominal increase is requested for this account to fund, in part, ' services related to fleet and fuel management software programming and services, etc. 4310 Telephone -The budgetary increase for this account takes into consideration the additional ' phone lines added for the Gopher State One Call utility locate system and designated computers. 4320 Utilities - The budgetary increase of $3,000 requested for 1995 takes into consideration the ' energy costs for heating the second half of the cold storage building to store vehicles and equipment this winter. ' 4350 Cleaning and Waste Removal - The $500 budgetary request increase takes into consideration the increasing cost for the increase of quantity involved in this service. ' 4360 Subscriptions and Memberships - A nominal increase is programmed for this account to professional services and technical subscriptions to maintain the latest technology information for ' the shop mechanics. 4410 Rental Equipment - $200 is budgeted for 1995. Again, this account is difficult to predict with any accuracy as to whether a situation or situations may be encountered which would require the use of rental equipment. However, dollars should be programmed for this purpose. ' 4440 License and Registration - The dollars for this account are designated for the licensing and registering of the shop vehicles. Every couple of years these vehicles are required to go through the emissions testing and registering procedures. ' 4510 Repair and Maintenance of Building - $5,500 is requested for the 1995 budget. The dollars for this account are specified for replacing the overhead garage door to the wash bay at the shop ' which is falling apart. Part of the dollars are also anticipated to be used for additional repair and maintenance on the building and grounds which are needed due to its age. ' 4520 Repair and Maintenance of Vehicles - A nominal increase is requested for this account. Again, this type of account is very difficult to predict what amounts will be needed depending on what breakdowns or failures may occur in the vehicles; however, given their continued aging, ' it is expected that repairs and costs would likely increase. 4530 Repair and Maintenance of Equipment - A $1,000 increase is requested in 1995 for this ' account to take into consideration service repairs for the new office equipment, fax machine and telephone equipment added to the department during 1994. 11 Don Ashworth ' December 6, 1994 Page 6 , 4531 Repair and Maintenance of Radios - Again, a nominal increase is requested; however, the ' number of breakdowns which may occur during 1995 necessitating expenditures from this account is not known. 4705 Other Equipment - The 1995 budgetary request for this account is $9,000 which is itemized ' as follows: 1. TIG Welder for welding aluminum ($2,500). ' 2. Magnetic drill press ($1,500). 3. Diagnostic engine analyzer ($5,000). ' It is important to note that the talented mechanics at the shop perform a great deal of metal fabrication of parts, fittings and attachments to either repair and/or improve on City equipment. , The TIG welder and magnetic drill press would enhance their fabrication abilities. The diagnostic engine analyzer would allow the mechanics engine computer error codes which are becoming increasingly more sophisticated with the newer vehicles added to the fleet. The initial investment of this item is expected to be recovered over time in cost savings on repairs performed in- house. 4933 Sales Tax on Purchases - The budgetary amount requested for 1995 is factored based on , the anticipated purchases for 1995. In conclusion, there is justification for each of the budgetary item increases requested for the 1995 public works budget. My staff of superintendents have worked closely with me to ' formulate a 1995 budget request that is sound and justified. It would be very difficult to manage the City's growth and meet expected service levels with only inflationary -type increases in these department budgets. ' ktm g:\eng`.charI e s =Nbudget 0 ' Public Works: Engineering: Personal Services Re- distribution of Public Works Director salary. ' Public Works: Street Maintenance: Personal Services Vacant positions filled from within. 1994 Re- estimates accurate due to savings realized in timing of filling position. Public Works: City Garage: ' Personal Services Same as above because of allocation across divisions. � I � I � I �1 fl 0 , Public Safety: Police Administration: Personal Services Addition of Public Safety Education Specialist and (1) Support Service Secretary budgeted @ 100% for 1995 as opposed to — 75% for 1994. , 4110 This section was increased in response to both the general demands resulting from growth and to the implementation of the new Public Safety Education Specialist position (including outfitting a new office). ' 4120 Same as above, but this account line anticipates some additional purchases by the Public Safety Education Specialist to get the program up and running. ' 4130 Same as above, but this account line will establish material required by the Public Safety Education Specialist (pamphlets, handouts, operation identification material, neighborhood watch supplies, etc). ' 4170 Increase recommended by Harold Brose, Shop Foreman. , 4300 1994 1995 Carver County Police Contract $418,844 $434,707 Southwest Metro Drug Task Force 10,000 10,000 State Crime Computer Fees 1,200 1,300 , Pager rental 280 300 Siren maintenance 370 400 Additional traffic /neighborhood patrol 15.000 15.000 ' $445,694 $461,707 4340 This account line was doubled for 1995 because we have more than doubled 1994's budgeted , amount in keeping up with increased printing requirements that are charged to this section (warning tickets, informational warnings, notices, door hangers, snow violation warnings, etc). 4370 Because educational plans for the Public Safety Director have changed, this account line will , remain the same as 1994 to be reduced $2,500 to $2,500. 4530 Can be reduced $100 to $200 ' 4705 The additional amount is specifically for the purchase of a storage cabinet to securely keep equipment for the emergency operations center (EOC), including 15 hard line telephones, 5 ' cellular phones, office equipment, maps, etc. fl 0 ' Public Safety: Fire Administration: 4030 Can be reduced to $2900 from $8000 because of election for deferred compensation/City only /pays Medicare portion of Social Security- approximately 3 %. ' 4140 Foam equipment for pumper ' 4170 Per Shop Foreman 4300 S.O.P. Manual preparation fees and increased costs related to membership physicals. ' 4320 Based on costs incurred throughout 1994. 4350 Same as above. ' 4370 Increase to cover new member training in addition to ongoing training. ' 4705 Pagers (8) @ $450 $3,800 Mag lights (3) 330 Radios, pager combos (capts) 2,400 Cutter, auto extrication 1,400 ' Exercise room, weights, new machine 3,700 Washer/Dryer, front loading 1,800 Headphones for engine, pump panel 1,500 Kitchen supplies, new pans, etc. 300 • $15,230 Public Safety: Code Enforcement: ' Personal Services Addition of (2) Building Inspectors and (1) P/r Secretary. 4110 Primarily increased in response to additional positions of (2) new building inspectors and additional P/T Secretary, as well as, overall increase in activity of the division. 4120 Office equipment for new personnel. ' 4130 Same as above. 4170 Per Shop Foreman. 4300 This account line is used to pay for specialty plan reviews we send out (fire sprinkler systems, unusual building construction reviews, etc). 4340 Last years budgeted amount proved inadequate to keep up with the printing needs of this division (inspection forms, notices, scheduling forms, etc). ' 4375 This account line pays for informational material provided to contractors, residents and businesses to promote code compliance. 4705 This account line reflects the following purchases: Copy machine to replace existing one that is D.O.A. $12,000 Shredder to replace existing one that is soon to be D.O.A. 1,800 Additional portable radios for new inspectors. 2.000 ' $14,800 Public Safety: Animal Control: 4130 In response to being over budget in 1994. 4140 Equipment for new CSO employee. 4170 Per Shop Foreman 4240 In response to exhausting 1994 budget and in anticipation of needing to outfit new hire to replace outgoing employee. 4300 This account line pays primarily for, among a few other things, vet clinics fees. Impounds and related fees continue to increase (all but what our City expends is repaid by the (5) other cities, as we pay the vet fees up front). 4370 Personnel are requiring additional training because we have provided them with additional equipment, both to reduce liability potential (batons, chemical agents, etc). 4520 Because vehicle is driven an average of 16 hours a day, repairs are required. 4530 Same as above, but this equipment includes repairs to kennels, flashlights, etc. 4705 Portable radios & File Cabinet. 4933 Sales tax for additional equipment in 1994. CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Don Ashworth, City Manager FROM: Kate Aanenson, AICP, Planning Director DATE: November 22, 1994 SUBJ: SWMP Financing As a part of the 1994 budget process, Paul water assessment rates for residential and a proposed by Paul and approved by the Cit) increase. Fortunately all appropriated mor budget shortfall. The Council had requeste was requested. To date, the following prof 1. Installed approximately 580 feet of nearby homes. iss had recommended an increase to the storm aural properties. The budget that was rncil was based on the approved assessment vas not spent or there would have been a it prajects be completed before any increase have been completed: storm 2. Excavated storm pond on Yuma Drive to provide enhancement. 3. Permitted excavation of wetlands for Canterbury and Lake Rilev . areas: T-Iis was , a lane Drocess °b to prevent flooding problems to volume for water quality Fox Path, Chanhassen Estates, the Federal and State 3WMP .s. a new document to them. 4. Climb Theatre performed Toadi# part of our educational efforts on 5. Began work on a wetland restora Blvd. reconstruction. Schools as project in conjunction with the Powers 6. Bluff Creek Watershed design and implementation. Working on obtaining funding as well as developing a design before too many proposed developments come in the door. MEMORANDUM Don Ashworth November 22, 1994 Page 2 , In addition to the Bluff Creek design, we have explored potential wetland restoration sites for the project and to add to our wetland bank. , 7. Lake monitoring program began. Anticipated draft lake management plans for Minnewashta, Lotus, and Riley and lake workshops for these lakeshore owners, etc. ' late fall or early winter. We believe that an additional $100,000 could be generated to apply towards projects ' identified in the SWMP Plan (see attached memo dated December 1, 1993 for history of establishing the fee). The program was never funded at the level originally proposed and there has not been an increase since it was adopted including any consideration for inflation. , We are recommending a $5.00 per quarter charge for residential properties and agricultural properties. We have prepared an resolution for the council consideration. I 0 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ' DATE: RESOLUTION NO: MOTION BY: SECONDED BY: A RESOLUTION INCREASING SURFACE WATER MANAGEMENT FEES FOR ' PROPERTIES ZONED RSF, PUD -R, INSTITUTIONAL DEVELOPMENT, A2, AND UNDEVELOPED PROPERTIES ' WHEREAS, on November 19, 1990, the Chanhassen City Council adopted Resolution No. 90 -149 that established surface water management fees to be collected by the city to fund ' activities relating to storm water runoff, retention, and water quality issues. NOW, THEREFORE, BE IT RESOLVED by the Chanhassen City Council that the fee ' for all property zoned RSF; PUD -R, institutional development, A2 and undeveloped properties in the City of Chanhassen shall be raised from $3.22 per quarter to $5.00 per quarter. ' Passed and adopted by the Chanhassen City Council this day of , 1994. ATTEST: �I Don Ashworth, City Clerk/Manager YES Donald J. Chmiel, Mayor NO ABSENT City of Chanhassen Carver and Hennepin Counties, Minnesota ■ DATE: November 19, 1990 RESOLUTION NO: 90 -149 MOTION BY: Dimler SECONDED BY: Chmiel ■ A RESOLUTION ESTABLISHING IITILITY RATES FOR THE ■ SURFACE WATER MANAGEMENT UTILITY WHEREAS, on September 24, 1990, the Chanhassen City Council ■ adopted a Surface Water Management Ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council that the ■ fee structure for the Surface Water Management Utility shall be established as shown on Exhibit A. BE IT FURTHER RESOLVED that the funds received from the sale ' of the land described in Exhibit B to Redmond Products shall also be dedicated to the Surface Water Management Utility Account. ■ Passed and adopted by the Chanhassen City Council this 19th day of November, 1990. ■ ATTEST: Don Ashworth, C1 y Clerk /Manager Donald J. C , Mayor ■ YES NO ABSENT Chmiel Dimler Wing Workman Johnson None ■ *�► ** SURFACE WATER MANAGEMENT UTILITY SPREADSHEET * ** Exhibit A CITY: CHANHASSEN JOB NO.: 90284 DATE: OCTOBFR I 1990 RAINFALL: 2 IN. 5 YR REVENUE: $1 8 OF INITIAL ESTIMATE: 60.001 REVISED 10/2/90 MLL * RUNOFF TOTAL UTILITY QUARTERLY COSTS +► PROPERTY .'LOT RUNOFF AREA VOLUME 1 FACTOR TOTAL PER PER * ZONING SIZE CN (INCHES) (ACRES) (AC An) RUNOFF (1) (2) ACRE LOT • (ACRE). (4) "(3) • RSF,PUD -R 043 72 0.29 2065 603.54 39.28 1 $20,156 $9.76 $3.22 • RR 2.5 60 0.06 1297 78.61 .5.18 0.21 $2,625 $2.02 $5.06 • R -4,R -8 82 0.65 O 0.00 0.08 2.22 $0 $21.67 NA • • R -12 88 0.97 45 43.44 2.81 3030 $1,451 $32.24 NA * BN,BH,CBD,BG,BF 92 1.24 226 279.57 18.28 4.23 $9 $41.31 NA • OI,IOP Be 0.97 394 '380.30 24.78 3.30 $12,701 $32.24 ` NA • INST. • (1) • DEVELOPED Be 0.97 90 86.87 5.68 3.30 $2,901' $32.24 NA • UNDEVELOPED ** 0.00 1630 $131 NA $3.22 • • PARKS * 65 0.14 406 65.65 4.3$ 0.46 $2,193 $4.51 NA • A2 40 ** 0.00 3814 $307 NA $3 22 • U * 40 ** 0.00 2708 $218 NA $3.22 • * TOTAL 12755 1537.98 $52;020 • (1) UTILITY FACTOR IS RUNOFF (INCHES) DIVIDED BY RUNOFF '(INCHES) FOR SINGL 52020 * (2) TOTAL QUARTERLY COST FOR SINGLE FAMILY RESIDENTIAL IS A PERCENTAGE OF THE TOTAL QUARTERLY • REVENUE EQUAL TO THE PERCENTAGE OF TOTAL RUNOFF • 0) COST PER ACRE IS PER ACRE COST OF SINGLE FAMILY RESIDENTIAL MULTIPLIED BY UTILITY FACTOR • (4) TOTAL QUARTERLY COSTS FOR PROPERTIES OTHER THAN SINGLE FAMILY RESIDENTIAL EQUAL * COST PER ACRE TIMES TOTAL ACRES. FOR AG AND UNDEVELOPED,THE FIXED FEE FOR THE AVERAGE • • AVERAGE PARCEL SIZE IS EQUAL TO THE RSF RATE. EXHIBIT .B ' to REAL ESTATE TRANSFER AGREEMENT LEGAL DESCRIPTION OF THE SUWZCT PROPERTY: That part of Tract C, Registered Land Survey No. 59, files of Registrar of Titles, County of Carver, which lies North of a line ' drawn East perpendicular to the West line of said Tract C from a point thereon distant 103.00 feet South, as measured along said West line from the Northwest corner of said Tract C. That part of the following described: The West 149 feet of that part of the Southwest Quarter of Section 7, Township 116 North, Range 22 West of the 5th Principal Meridian, lying Southerly of the right -of -way of the Chicago, Milwaukee, and St. Paul Railway; which lies North of a line drawn East perpendicular to the West line of Tract C, Registered Land Survey No. 59, files of Registrar of Titles, County of Carver, from a point thereon distant 103.00 feet South, as measured along said West line from the Northwest corner of said Tract C. 1 1 MEMORANDUM CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: SWMP Task Force FROM. Paul Krauss, AICP, Director of Planning DATE: December 1, 1993 SUBJ: SWMP Financing ' As most of you know, the issue of financing, relative to the establishment of the storm water trunk fee system for new development, is the last significant unresolved matter holding up adoption of the SWMP Plan. Our last meeting was devoted to the topic and we have had a ' number of discussions on this in the past. This is the primary issue for the current meeting. Staff was asked to go back and develop some proposals. We were also asked to seek some ' outside assistance from other engineers in reviewing the proposal. Honestly, we do not have a definitive proposal at this time but we have made attempts to define the discussion as follows: ' FINDINGS System Cost ' Bonestroo (BRA) has estimated a total system cost of $20,186,000 for storm drainage related improvements. These costs do not include water quality related improvements which have a ' separate fee structure, basin interconnections and large downstream ponding areas. BRA staff acknowledges that these costs are conservative and based upon a worst case scenario. We believe that the costs are reasonably accurate but may significantly overstate the actual system ' cost for a number of reasons outlined below. a. The cost data incorporates an assumption that 60% of the cost of projects will be spent on contingencies, design, project administration and interest on bonded funds. While this may be a conservative way of projecting costs that are highly variable, it also seems excessive. A 40% figure may be more reasonable. This change alone would knock $4.4 ' million off total system cost with commensurate decreases in acreage and unit charges. b. The projected costs cover all piping needed to support the system and not simply the , oversizing costs. Normally, if a 24" pipe is needed by the City but the developer would need only a 12 ", the City is only responsible for the oversizing. Oversizing is only a relatively small incremental cost. Thus, wherever we can piggy -back construction with ' an on -going development, which is often the case, we can save a significant amount of money. The same holds true for the need to oversize ponding areas that are required by the plan. This is not a theoretical assumption but rather one in which staff has had ' extensive experience with development in Chanhassen. c. Standard City policy has been to install drainage improvements in conjunction with street ' reconstruction programs in areas where the street has deteriorated due to use or age. Fifty percent of the costs are assessed, with the remaining 50% absorbed by the City from General Funds. Thus, costs of installing drainage improvements in Frontier Trail, ' Minnewashta Parkway, Kerber Boulevard, Bluff Creek Boulevard and potentially Chan Estates in the near future, were accomplished without the need to tap the proposed Storm Trunk Fund. In the future, we may wish to use the Trunk Fund to offset the City's direct ' cost in much the same manner we use the Water and Sanitary Trunk Funds but even so this represents a substantial cost savings. , d. Through the use of TIF funds, we have been able to install the required systems in the CBD and industrial park as well as sections of Hwy. 101, Audubon Road, etc. We are going to be using TIF proceeds to upgrade a series of county roads in the near future to ' return some of the TIF benefits directly to the County. Here again we will be able to construct substantial portions of the trunk system at no cost to the Trunk Fund. Similarly, , State Aid funds can be used to pay for up to 2/3's of the cost of drainage improvements for construction on designated routes. Most major roadways in the City are on the State Aid system. ' e. Other revenue sources may be possible. We are currently investigating a joint agency project to work on Bluff Creek, for example, that has the potential to bring in new funds. ' f. Chanhassen has a Surface Water Utility that generates funding to address some of these issues. The program's primary focus to date has been to remediate water quality ' problems and address wetland protection and this will likely continue to be the case. We also note that we believe the program to be significantly under funded. Still, some of the money will ultimately be used to address storm water issues and in fact we have already completed several such projects. The presence of such a program enhances the equity of the total funding formula. With it we are not solely relying on what is an impact fee on new development to address problems created by existing development. ' Summary 1 The cost estimates shown for the system appear to significantly over estimate its ultimate cost. Off - setting this is the need for funding long -term maintenance of the system which has not been included in the projected costs. While we believe it is not possible to tell you with certainty that � ' the ultimate cost of the storm system is X but we do think it will be less then $20,186,000. I For lack of a more concrete figure, we are recommending that a system cost of $13,120,900 or 65% of the BRA projection, be used as the basis for establishing fees. I How Would Fees Be Assessed The level of developer participation remains a little foggy. Simply put, we believe that in most ' cases with larger developments, much of the trunk charge would be waived for in -kind improvements. These would include constructing oversized basins and pipes consistent with the Plan. We believe that this is the case in many communities that have the fee. Interestingly, this ' is not the case in Eagan. Dave and I called over there and found that they give credit only for improvements that are installed by the City as a public improvement. If a developer installs his or her own pipes or ponds they are given no credit. Neither Dave or I feel this is equitable and ' we are recommending full credit be offered for developer installed improvements in Chanhassen. On smaller sites or those on which the city determines that we do not want separate ponding, etc., the full fee would be assessed. In much the same manner as we accept or reject parkland ' dedication based on whether it meets a community need, it is very important that the City retains the flexibility to designate appropriate ponding areas. We do not want to wind up with a large number of undersized basins that are inefficient and have high maintenance requirements that ' must be born by the City. At the same time, we will not be limited to the literal interpretation of the Plan. The Plan must clearly state that we will review development proposals on a case ' by case basis. When a developer has a better idea that is more cost effective, timely or both, we will relocate ponding basins as long as total system needs are met. Our system has been computer modeled specifically so that we can have this flexibility. ' What is Covered by the Fee? The trunk fee only covers the cost of storm ponds and piping. It does not cover the cost of water quality basins which have a separate funding formula. We find this to be accurate in terms of where the money is going but confusing in actual practice. This is made even more confusing ' by the fact in many cases, the same ponding basin will be designed to accommodate both functions. The plan should lay out both funding formulas next to each other and enable an easier assessment of actual fees to be made. When a developer does not wish to provide a required ' quantity or quality basin, alternatives may be allowed by the City only when they are demonstrated (at the developers expense) to be viable and the developer pays the full cost of off - site land acquisition and development. The City has already implemented this requirement and ' utilized it on several projects. District Costs vs. Average Costs ' The P lan allows for a breakdown of total cost by individual drainage districts. Based upon BRA's cost analysis, district fees vary from $4980 per acre around Rice Marsh Lake, to a low ' of $1640 at Purgatory Creek. The cost differentials represent variable costs of particular district needs and to some extent show that remediating problems in developed areas is more expensive. Decreasing the total system cost as recommended above would lower the per acre fee but not the ' disparity. It is our recommendation, that for the sake of simplicity and equity, that an average r per acre assessment fee be used instead. This cost averaging philosophy is identical to one used currently by the City for sanitary and water trunk improvements RECOMMENDATIONS t 1. Based upon the discussion outlined above, we are recommending the cost basis for total system construction be decreased by 35%, from $20,186,000 to $13,120,900. This would r have the effect of decreasing the average assessment rate from $3695 per acre to $2402. This is in line with or less than the fees charged by comparable communities as illustrated on the attached tables. ' 2 Fees should be assessed on an averaged rather then district cost basis. 3. The City must retain the right to accept or reject ponding proposals for both water r quality and storm water basins based upon meeting the community's criteria as established by the Plan. , 4. The fee structure should allow for a developer to offset some of the direct costs by installing oversized or required improvements if consistent with the Plan as interpreted ' by the City. 5. We feel that further work is required to refine the finance package. We have already had ' a preliminary meeting with Bill Engelhardt as requestedby the SWMP Task force and our current discussion reflects some of these comments. We are recommending that the Task Force vote to approve the SWMP Plan and send it on to the Planning Commission r and City Council for action. We are further recommending that you direct us to work with Bill and one or tow other experienced engineers to refine the financing package. ' 6. The rates should be increase annually in line with the construction price index. u LJ L CITY OF CHANHASSEN STORM WATER UTILITY SURVEY OCTOBER, 1993 CITY RESIDENTIAL CHARGE FOR STORM WATER UTILITY Roseville $4.38 /quarter Bloomington $5.50 every 2 months ($8.25 /quarter) Fairmont $2.08 /month ($6.24 /quarter) Shakopee 1) City-wide fee of $13.00 /year ($3.25 /quarter); and 2) Special assessments to properties affected by any storm water projects. Richfield $7.55 /quarter Fridley $1.75 /quarter St. Paul $42 /year as an assessment Vadnais Heights $4.50 /quarter Eagan $5.40 /quarter Plymouth No program Woodbury $7.50 /quarter for single- family, $6.00 /quarter for multi - family (townhouses - not apartments) Mounds View No program until January 1, 1994 Burnsville $3.00 /quarter Brooklyn Park No program Lakeville No program until January 1, 1994 Maple Grove No program Oakdale No program Storm Water Trunk Funds City of Apple Valley Fees: TEL 431 -8879 Single family $2235 /acre Rick Kelly Multi- family 2795 /acre Commercial 3355 /acre City of Chaska Fees: TEL 448 -2851 Single family $2178 /acre $750 /lot max. Shirley Bruers Commercial 3267 /acre City of Eden Prairie No fund at this time. Working on one. TEL 937 -2262 Randy Slick Jim Richardson, Eng. Tech. City of Plymouth TEL 550 -5078 Bob Johnson City of Shorewood TEL 474 -3236 None. Don't understand why you'd want such a thing. City of Cottage Grove Fees; by District TEL 458 -2800 Range: $623 - $4220 /acre John •A CHANISTORMWTR 11117193] . 1 - Tim Eftri City of Eagan TEL 681 -4600 Ed Kinship Fees: Single family Multi- family Commercial $3305 /acre $3876 /acre $4660 /acre City of Maple Grove Fees; by District TEL Range: $3000- 4000 /acre, includes all pipes over 18" and ponding. Ken City doesn't allow developer to install storm water system at all! Developers are note even allowed to bid on it. CHAN\STORMWTR 11/17/93i .2- Tim Erhart NOV-18-93 T H U 16:06 B O N E S T R O O & ASSOCIATES P. 0 CHANHASSEN STORMWATER MANAGEMENT PLAN Average Stormwater Trunk Assessments Rates for Single Family Residential Land Uses In the Metropolitan Area Plymouth 39304.cor Storm Area City Charges ze Enit Cottage Grove $3,160 1 1 050 Woodbury $3,050 1,020 Eagan $3,005 1,000 Apple Valley $2,235 74.5 Chanhassen ... ... Eden Prairie Maple Grove $4,000 1,000 Chaska 4,899' ',200 Plymouth 39304.cor NOV-18-9Z T H U 16:06 P O N E S T R O O Q ASSOCIATES P.0:9 * pro G Gvwapp PE *QW M A Wit RE MWW 1 ay. PC, Mark 9 �s PE r Bon eS 1. 00 beer w Rowe. PF • Kee+ A Gaoon, PE, Pho ?^ ►.E Man R im W, PE Q MW C Anpertic, OF R000n R ftNc 4. P! Arm M RM A I C P L PrA* C"VM IN Pg ' i l ROS � Rk� L SOP44 Pk w Raw, PE. Thomas w Pearen. PR Ewen I. W~ PC mom Rewfe E i 1W. Of pewp Q Isuma. PE. Who C. ratan PE "Y p *me, Pg M �rr p GkMn R COW PE been C Rustic AJ.A JNntl R. Ma+eno, PE P %W fta&.. PE e l� ndeE Iik & InwNt E Nom:. PE A"y A YouMM PE Jlrty Q PM&. PE. Neer a typo. PE awl? C1+u G Snm Pg M&* A W R m , Pg ffitM P. MOrm+. e PE O"La J Ocrert. PF. Associates ' Smf* M. Dew C.PA. "Khan t pu nw., P! Milk R. bMS PE ftwn D C%Sw. en, PE •Senor Conswunt in K FM PE Mirk A Sera PE Com fA.W ►E "MMI R A►mOj W. AJA Giy W Morten. PE Chines IN Eruten Engineers & Architects opuld C Rwoft RE, 0" .L la PWL PE Wo M PV" k WAMN E MAYS, ►!• MOM ft $M"wt PE. $linen M C4W ' wr►tin Meranct. P!. PNp J CaswLll PE Jere; r inpeVUrot March 29, 1993 ' Mr. Paul Krauss City of Chanhassen 690 Coulter Drive ' Chanhassen, MN 55317 Re; Storm Sewer Area Charges for the ' City of Chaska File No. 39304 ' Dear Paul: This letter is to follow up on the comments made by Tim Erhart at our last SWMP Task Force ' meeting on March 17, 1993 regarding the stormwater trunk rate for the City of Chaska. 1 personally talked to our City Engineer for Chaska, Ken Anderson, and to Shirley Bruers, Community Development Director for the City of Chaska. The results of both conversations ' can be summarized as follows: ' a) The rate presented by BRA to the Task Force was taken out of the 1990 Stormwater Management Plan prepared by our firm (see attached copy of Table 5 from the report). b) Although the 1990 PIan was immediately adopted by the City Council, the official adoption of the rates proposed in the plan was postponed for a later date and has not yet taken place. Shirley thinks that the adoption of new rates by the City of Chaska will occur in a matter of months. ' c) The rates of 50.05 /sq.ft. and 50.075 /sq.ft. given to Tim are the current storm sewer rates used by the City of Chaska for residential and commercial development respectively. During the phone conversation between Shirley ' and Tire, Shirley expressed her concerns about these rates which are too low to pay for Chaska's storm sewer trunk system as proposed in the 1990 Plan. She also mentioned her efforts during the last 2 years in convincing Chaska's City Council to update the existing storm sewer rates which have not been updated since 1980. ' It always has been the intention of our firm to provide the Task Force with accurate information for open discussion at the meetings. As result of Tim's concerns, the rest of the ' per acre rates presented at the meeting have been confirmed with the City Engineers of BRA. These rates are correct to the best of our knowledge. I Page 1. NOV-18-93 T H U 16:07 B O N E S T R O O & ASSOCIATES P.04 City of Chanhassen March 29, 1993 Chanhassen, MN Re: File No. 39304 Finally, it is important to clarify that the purpose of providing the Task Force with other cities' rates was merely informative. What other cities are charging for storm sewer improvements can be used as a reference; however, Chanhassen will have to decide how it wishes to pay for its surface water system once we determine its cost as part of the SWMP effort. I bope this letter responds to the concerns expressed at our last Task Force Meeting. Sincerely, BOKESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. Cee ro Olivier CO:li Page 2. 39304.cor represented by 1.5 equivalent square feet. Assessment rates for each drainage district using equivalent square feet are also presented below. The assessable area in the drainage districts for this report excludes all lakes, proposed ponds and 9oo41aks. V 6-6'o Y. TN -* 4 t 31 . �!tn Equivalent Single Family Mixed Comm., Ind., Total Assessment District Estate Low Density Density High Density Cost Rate N ame _ rte 33 West Creek 0.0779 0.1038 0.1298 0.1557 $15,999,000 0.1038 Carver 0.0589 0.0785 0.0981 0.1178 • 2 0.0785 East Creek 0.0842 0.1122 0.1403 0.168 20,376,000 0.1122 Chanhassen 0.0472 0.0629 0.0786 0.0944 ,$.000 0.0629 Total $40,929,000 Average 0.103 65