2015-08-03 CC Workshop Agenda Packet
Council Workshop Agenda
Monday, August 3, 2014
City Council Chambers
Immediately Following Regular Meeting
NOTE: City Council Regular Meeting at 7:00 p.m.
1.Call to Order
2.2016BudgetOverview(presentation)
3.Review of Preliminary 2016 Budget (attached)
4.Unfunded Items (general discussion)
Economic Development (memo attached)
Arena
Lobbying
Park Improvements (depot, splash pad, etc.)
Capital Improvements (pavement management, PW cold storage, general C/O)
Social Media/Website
Main Avenue NE Electronic Sign
5.Adjournment
Agenda Page 1
2016 PRELIMINARY BUDGET SUMMARY COMPARISON
GENERAL FUND
DifferenceDifference 15
2015 Budget 2016 Budget 15 to 16 $to 16 %
General Fund Revenue:
31010Current Ad Valorem Taxes1,683,0191,807,645$124,6267.40%
32100Business Licenses & Permits22,00027,000$5,00022.73%
32110Liquor Licenses29,15029,500$3501.20%
321203.2 Liquor Licenses15075-$75-50.00%
32150Sign Permits1,5001,200-$300-20.00%
32210Building Permits75,00079,000$4,0005.33%
32240Animal Licenses500600$10020.00%
33401LGA Revenue expected87,00090,462$3,4623.98%
33405Police Aid28,00030,000$2,0007.14%
33406Fire Aid43,00043,000$00.00%
33422Other State Aid Grants9,50010,000$5005.26%
34000Charges for Services2,0002,000$00.00%
34005Engineering As Built Fee2,0003,000$1,00050.00%
34101Leases - City Property1,440$1,440100.00%
34103Zoning & Subdivision Fees1,5002,000$50033.33%
34104Plan Check Fee32,00038,000$6,00018.75%
34107Title Searches1,5002,000$50033.33%
34113Franchise Fee - Cable67,50072,000$4,5006.67%
34202Fire Protection Contract Charges225,710253,304$27,59412.23%
34780Rental Fees10,00010,000$00.00%
34950Other Revenues10,5008,000-$2,500-23.81%
34110Arena11,96412,323$3593.00%
34112Electric Franchise Fee115,000115,000$00.00%
36210Interest Earnings25,00025,000$00.00%
102Capital Levy864,160887,465$23,3052.70%
Total Revenues3,347,6533,550,013$202,3606.04%
DifferenceDifference 15
2015 Budget 2016 Budget 15 to 16 $to 16 %
General Fund Department Expenditures:
41000General Government30,00030,000$00.00%
41100Council38,41940,059$1,6404.27%
41300Combined Administrator/Engineer87,64589,064$1,4191.62%
41400City Clerk97,38097,541$1610.17%
41440Elections15,50015,500$00.00%
41500Finance 107,103110,734$3,6313.39%
41550City Assessor29,00029,870$8703.00%
41600City Attorney40,00040,000$00.00%
41700City Engineer20,00020,000$00.00%
41800Economic Development5,0005,000$00.00%
41910Planning & Zoning38,50741,507$3,0007.79%
41940City Hall117,468131,696$14,22812.11%
42000Fire Department429,433442,808$13,3763.11%
42110Police613,020684,750$71,73011.70%
42400Building Inspection154,468161,191$6,7234.35%
42700Animal Control4,0805,000$92022.55%
43100Public Works - Streets268,064299,648$31,58311.78%
45000Culture & Recreation67,91069,809$1,8992.80%
45100Parks & Recreation239,495267,372$27,87811.64%
43160Electric street lights81,00081,000$00.00%
102Capital 102864,161887,465$23,3042.70%
Total Expenditures3,347,6533,550,013202,3606.04%
Page 1
Agenda Page 2
Difference 15
Levy20152016to 16 %
eneraun,,,,.
GlFd&EDA16830191807645740%
Capital Levy864,160887,4652.70%
Total Tax Levy (Oper. Levy)2,547,1792,695,1105.81%
357GO Improvement Bond 03275,948273,743
354Bonds 03 PF Lease Rev80,80078,721
359City Hall 05262,452266,085
360Go Imp 2012A CSAH 1926,15726,157
358PW Facility 04103,449100,824
361Go Imp 2012A Lach31,60031,600
362Go Imp 2012A Ind Park109,56184,561
468I-9460,00060,000
Total Debt Service Levy949,967921,691Debt Levy-2.98%
Total Levy3,497,1463,616,801Total Levy3.42%
Page 2
Agenda Page 3
OptionAnnual LevPayable 201Payable 2016alue
y5V
Increase
$150,000
CurrentLev$3,497,146$3,616,801
y
$119,655$200,000
$300,000
0.51400.5315
GF Lev$2,547,179$2,695,110
y
$147,931
0.37430.3961
Debt Lev$949,967$921,691
y
-$28,276
0.13960.1355
Based on 2012 taxes payable and tax capacit
y
Total Levyimpact on $150,000 home$771$797$263.42%
Impact on $200,000 home$1,028$1,063$353.42%
Impact on $300,000 home$1,542$1,595$533.42%
Based on 2012 taxes payable and tax capacity Albertville Portion
Total Levyimpact on Htl$21,476$22,211$7353.42%
impact on PC$4,853$5,019$1663.42%
impact on BP$6,937$7,175$2373.42%
impact on SL$18,658$19,296$6383.42%
impact on Clvr$10,212$10,562$3493.42%
Impact on DB$8,626$8,921$2953.42%
Impact on JLC$8,927$9,233$3053.42%
impact on AAB$1,260$1,303$433.42%
impact on VC$5,855$6,055$2003.42%
impact on 152$3,335$3,449$1143.42%
impact on SM$3,329$3,443$1143.42%
Golf Course$6,812$7,046$2333.42%
Increase in taxes for $200,000 home
$25,000$7
$50,000$15
$75,000$22
$100,000$29
$200,000$59
Agenda Page 4
MEMORANDUM
TO: Adam Nafstad
FROM: Alan Brixius
DATE: July 29, 2015
RE: Albertville – Economic Development Priorities
FILE NO: 163.05 – 15.11
BACKGROUND
Over the last three years, the City has enjoyed a number of successful industry projects
as:
2013 Fraser Steel 24,500 square foot expansion
2015 Mold Tech 12,000 square foot expansion
2015 Oldcastle Glass33,750 square foot new construction
In preparing the 2016 budget, the Council has inquired as to the need to budget for an
economic development line item. In discussion with the City Administrator, we have
been requested to outline potential areas where additional investment for economic
development may be appropriate.
OPTIONS
Project Costs.
With each of the aforementioned projects, the City incurred the
following costs prior toformalproject applications:
Start meetingswiththeindustry to outline zoning, development process,
schedule, and financial assistance.
Primary financial analysis/TIF projectionsandidentify TIF eligibility costs.
Preparation of the TIF Plan. The City has covered the upfront costs of the TIF
Plan and development contract. These costs are recovered later from the
collected TIF administrative costs.
Agenda Page 13
Having the economic funds to cover the aforementioned upfront costs would be helpful.
The City should examine the upfront costs associated with the aforementionedprojects
to arrive ata budget amount.
Land Supply.
The City has improved land (land with street and utility access) for
commercialdevelopment. This land is under private ownership and may be available
for immediate development. The City has not aggressively pursued commercial growth,
rather it has allowed the private sector to address this land use.
Over the past three years, there has been some discussion about a major commercial
development in northwest Albertville. To date, we have no full confirmation as to
whether this project will proceed. If this project comes to fruition, it will have impacts
beyond the development site with regard to streets, traffic control, utilities, and
stormwater management. These off-site improvements will be essential to the effective
operation of the site, but will benefit adjoining properties making them ready for
development.
Whether this project proceeds or not, the City will need to evaluate its street and utility
infrastructure for this large area of the City to accommodate its future growth. In
examining these needed improvements, the City should examine the available financing
options toreduce the potential impact on the balance of the community.
If the project moves ahead, it will generate significant tax revenues. As a commercial
land use, it may not be eligible for tax increment financing, however, it may be eligible
for tax abatement, whereby the City only collects its share of the real estate taxes from
the project and specifically earmarks them to pay for the improvements associated with
the project. These improvement costs may include:
1.Extension, sizing, and looping of watermains.
2.Extension and sizing of sanitary sewer.
3.Development of a regional stormwater system.
th
4.Improvements to 70Street NE.
5.Improvements to CSAH 19.
thth
6.Traffic signals at 70and 67StreetsNE.
7.SAC/WAC assistance.
The aforementioned improvements will be required for the development of northwest
Albertville regardless of whether the current project successfully proceeds. Our
comments are only intended to outline an alternative financing tool other thanusing
assessments and the City’s general fund.
The City has a very limited supply of industrial guided land available for immediate
development. The City has guided land in southeast Albertville for future industrial
expansion, however, this land is under private ownership and lacks public infrastructure
(streets, utilities, or stormwater management). Without a supply ofready-to-build
industrial lots, the City is at a disadvantage in marketing the City to new industries.
2
Agenda Page 14
Prospective industries looking for a new location often have a specific schedule for
development and will want some assurance that they can complete construction and
occupancy within their given deadline.
Knowing the City’s reluctance to acquire additional land or desire to incur additional
debt, perhaps we should explore the following options:
1.Meet with current property owners to discuss the availability of buying land, land
prices, options for subdivision, and potential for site improvements. We know
that the land is owned by private citizens that may not wish to incur costs for
improving the land, however, we may be able to agree on a pre-established land
price and terms for acquiring property in the event we have a prospective
industry interested in the City.
2.Meet with prospective development companies to discuss the possibility of a
public/private partnership to create a marketable industrial park. We have
worked with CBRE, Scannell, and Opus in the past. We should explore these
relationships along with Ebert, Kinghorn, and Shingobee to see if there is any
interest in collaborating on an industrial park expansion. These contacts may
bring some private financing and marketing to the community.
CONCLUSION
In considering the 2016 budget, there will be City time and expense in pursuing the
aforementioned economic development options and opportunities. This will likely
involve both staff and consultants. In this respect, an economic development budget
line item may be appropriate.
2015 was a good year for Albertville’s economic development. To establish a budget
amount, we should examine the lead in time and TIF Plan costs associated with Mold
Tech and Oldcastle projects to establish an estimated budget amount.
c: Tina Lannes
Kim Olson
Mike Couri
Tammy Omdal
3
Agenda Page 15