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2015-12-07 CC Agenda Packet City of Albertville Council Agenda Monday, December 7, 2015 City Council Chambers 7:00 PM NOTE: Truth-in-Taxation Hearing – 6:30 p.m., City Council Chambers PUBLIC COMMENTS -The City of Albertville welcomes and encourages public input on issues listed on the agenda or of general community interest. Citizens wishing to address the Council regarding specific agenda items, other than public hearings are invited to do so under Public Forum and are asked to fill out a “Request to Speak Card”. Presentations are limited to five (5) minutes. M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-12-07 CC Agenda.doc Meeting Date: December 7, 2015 1. Call to Order 2. Pledge of Allegiance – Roll Call 3. Recognitions – Presentations – Introductions 4. Public Forum – (time reserved 5 minutes) 5. Amendments to the Agenda 6. Consent Agenda All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the November 16, 2015 regular City Council meeting minutes as presented (pgs 4-10) B. Authorize the Monday, December 7, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request (pg 11) C. Approve Resolution No. 2015-041 adopting the City of Albertville Investment Policy 2015 Version (pgs 12-16) 7. Public Hearings A. Proposed Reassessment Of Costs for the Installation of Municipal Improvements (“Prairie Run Improvements”) To Lot 2, Block 1, T Square Business Park And Related To Improvements To CSAH 19 (pgs 17-22) (Motion to approve Resolution No. 2015-042, Resolution Adopting Reassessment on Tax Forfeited Property.) Agenda Page 1 City of Albertville Council Agenda Monday, December 7, 2015 Page 2 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-12-07 CC Agenda.doc Meeting Date: December 7, 2015 8. Department Business A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) 2). Parks Committee Meeting Notes (23) 3). Arena Design Committee Appointments – Discussion B. Finance 1). 2016 Final Levy and Budget (pgs 24-33) (Motion to Approve Resolution No. 2015-043 entitled a Resolution Adopting Property Tax Levy Collectible in 2015 (for 3.98%); and, approve Resolution No. 2015-044 entitled a Resolution Adopting the 2015 Final Budget.) OR (Motion to Approve Resolution No. 2015-043 entitled a Resolution Adopting Property Tax Levy Collectible in 2015 (for 4.98%); and, approve Resolution No. 2015-044 entitled a Resolution Adopting the 2015 Final Budget.) C. Legal 1). Tax Forfeit Properties (pgs 34-37) (Motion to Adopt Resolution No. 2015-045 Requesting The State of Minnesota to Deed Tax Forfeited Lands to the City of Albertville.) 2). City Attorney Report (pgs 38-39) D. Fire – None E. City Clerk – None F. Public Works/Engineering – None G. Planning/Zoning – None H. Building – None I. Administration 1). Federal Lobbying Services – Andy Burmeister (Lockridge, Grindal, Nauen) 2). STMA Ice Arena Tentative Development Schedule (pgs40-41 ) (Motion to Support Proposed Schedule as a Tentative Project Outline.) 3). City Administrator’s Update (pgs 42-43) 9. Announcements and/or Upcoming Meetings December 14 STMA Ice Arena Board, 6:00 p.m. December 21 City Council, 7:00 p.m. Agenda Page 2 City of Albertville Council Agenda Monday, December 7, 2015 Page 3 of 3 M:\Public Data\City Council\Council Agendas\2015 Agendas\2015-12-07 CC Agenda.doc Meeting Date: December 7, 2015 December 24 & 25 Christmas Eve/Day, City Offices Closed December 28 Joint Powers Water Board, 6:00 p.m. Dec. 31/Jan. 1 New Year’s Day, (City Offices Closed Dec. 31, Public Works Closed Jan.1) January 4 City Council, 7:00 p.m. January 6 Fire Advisory Committee, 6:00 p.m. January 11 STMA Ice Arena Board, 6:00 p.m. January 12 Planning Commission, 7:00 p.m. January 18 Martin Luther King, Jr. Day, City Offices Closed January 19 City Council, 7:00 p.m. January 25 Joint Powers Water Board, 6:00 p.m. Parks Committee, 8:00 p.m. DECEMBER Su M Tu W Th F Sa 1 2 3 4 5 6 CC 7 PC 8 9 10 11 12 13 Ice 14 15 16 17 18 19 20 CC 21 22 23 *H24 H 25 26 27 JP 28 29 30 H 31 JANUARY Su M Tu W Th F Sa H 1 2 3 CC 4 5 FAC6 7 8 9 10 Ice 11 PC 12 13 14 15 16 17 H 18 CC 19 20 21 22 23 24 JP25PK 26 27 28 29 30 31 10. Adjournment Agenda Page 3 Page 1 ALBERTVILLE CITY COUNCIL Monday, November 16, 2015 DRAFT MINUTES ALBERTVILLE CITY HALL 7:00 PM 1. CALL TO ORDER - PLEDGE OF ALLEGIANCE Mayor Hendrickson called the meeting to order at 7:00 p.m. 2. ROLL CALL Present: Mayor Hendrickson and Council members Hudson, Olson, Sorensen, and Vetsch Absent: None Staff Present: City Administrator-PWD Adam Nafstad, City Attorney Mike Couri, City Planner Al Brixius, and City Clerk Kimberly Olson Others Present: Roger Lucy, Josh Opiola, Dennis Sjoberg, Bob Brauil, Kenny Waller, Tammy Tuppers, and Bob Zagorski 3. RECOGNITIONS – PRESENTATIONS – INTRODUCTIONS - None 4. PUBLIC FORUM – (time reserved 5 minutes) There was no one present to speak at the forum. 5. AMENDMENTS TO THE AGENDA Hendrickson moved the Ice Arena Second Sheet Discussion from Administration to A3 under City Council. Motioned by Hendrickson, seconded by Vetsch, to approve the Agenda as amended. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Agenda Page 4 DRAFTCity Council Meeting Minutes Page 2 Regular Meeting of November 16, 2015 6. CONSENT AGENDA All items under the Consent Agenda are considered to be routine by the City staff and will be enacted by one motion. In the event an item is pulled, it will be discussed in the order it is listed on the Consent agenda following the approval of the remaining Consent items. These items will be approved by a separate motion. A. Approve the November 2, 2015 regular City Council meeting minutes as presented B. Approve the November 2, 2015 workshop meeting minutes as presented C. Authorize the Monday, November 16, 2015 payment of claims as presented, except bills specifically pulled which are passed by separate motion. The claims listing has been provided to City Council as a separate document and is available for public view at City Hall upon request D. Authorize the purchase eight (8) sets of new turn-out gear for a total purchase amount not- to-exceed $23,403.60 E. Approve Resolution No. 2015-038 setting a public hearing for proposed assessment on Lot 2, Block 1, T Square Business Park Motioned by Hendrickson, seconded by Hudson, to approve the Consent Agenda as presented. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. 7. PUBLIC HEARINGS – None 8. DEPARTMENT BUSINESS A. City Council 1). Committee Updates (STMA Ice Arena, Planning, JPWB, Parks, Fire Board, FYCC, etc.) STMA Ice Arena Board Hudson reported that snow retention clips had broken and were not covered by the roof warranty. He stated they are having difficulty find staff for the Zamboni driver position. The Board also held limited discussion on the second sheet of ice. Fire Department Business Meeting Sorensen reported that funds from the Toss for Tyson fundraiser, in the amount of $4,300, were given to the Fire Relief Association. Sorensen also reported that the STMA Football team was thankful for the Fire Department’s escort home after the State Championship game. Joint Powers Water Board Hendrickson stated that she will not be able to attend November’s meeting and wants to be sure there is a quorum of members present. Hudson offered to attend if needed. 2). Parks Committee Meeting Notes of October 26, 2015 – No Action Needed Vetsch reported the committee has discussed installing lights at the ball fields at Central Park, but it is a large expense and will depend on if and where a second sheet of ice will go at the arena. Agenda Page 5 DRAFTCity Council Meeting Minutes Page 3 Regular Meeting of November 16, 2015 3). Ice Arena Second Sheet Discussion Nafstad reported the goal of the discussion is to determine if the City Council is willing to fund one third of a $7 million expansion to the ice arena with the pledge of $1 million from the STMA Youth Hockey Association (STMA YHA). He reported that the School District is interested in the partnership and they had discussed a voter approved referendum or tax abatement levy and it is believed the School Board is open to the tax abatement option with the cities. A referendum would have been pushed out two to four or more years. Nafstad reported that St. Michael prefers the referendum option but is open to the tax abatement levy for a project to be capped at $5 million, although they may be open to a greater amount if necessary. He reported they will hear from Mighty Ducks on November 18 whether they will receive the $250,000 grant. Hendrickson stated the School District would like to see the project move forward sooner than later as they anticipate a future operating levy in a several years. Couri reported on several options of how the bond could be structured. Sorensen clarified he wants the $1 million up front and partnership between the three entities. Olson stated if the project is to move forward it needs to be done correctly and meet the need of all users. Hudson stated that he still had the same concerns he presented in previous meetings. He felt that Albertville’s share of a $5 or $7 million project would be roughly one-half to two-thirds of the City’s annual operating budget. It is hard to quantify the cost/benefit of such a project. Hendrickson clarified the total cost of the project would be spread out in smaller payments over a number of years with a bond. Vetsch also stated that new development expands the tax base and would help to reduce the impact on taxpayers. Sorensen inquired when the project could be completed. Nafstad replied the earliest would be the fall of 2017. Olson inquired if any of the Council would be interested in keeping the levy at the preliminarily set levy of 4.98% to add $35,000 back in to go to the arena improvements or second sheet of ice. He stated that would reduce the one-time impact discussed at the last meeting by 1%. He felt it is an option they should consider before approving the final levy. Sorensen suggested they wait to see what happens at the joint governance meeting on November 30. Nafstad clarified it was 4 to 1 in support of funding one third of a $7 million expansion. B. Finance – 1). Uncollected Invoice Certification to Wright County for Collection with Real Estate Taxes Nafstad reported there were a number of invoices that are outstanding in regards to the rezoning and reconsideration requests of Westbridge Church for the Leuer-Munstertieger property. Currently, the property owners are delinquent on taxes for two years. He stated staff was given direction at the last Council meeting to bring back the outstanding invoices for certification; originally, the invoices for this parcel were excluded from the previous meeting’s certification list. Agenda Page 6 DRAFTCity Council Meeting Minutes Page 4 Regular Meeting of November 16, 2015 Motioned by Hudson, seconded by Sorensen, to approve Resolution No. 2015-039 entitled a Resolution Certifying the 2015 Uncollected invoice in the amount of $1,817.34 for parcel 101- 079-000010 to Wright County for Collection with Real Estate Taxes. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. C. Planning/Zoning 1). Sign Code Revisions – Presentation Brixius reported the Planning Commission has reviewed the sign ordinance in order to make it more user-friendly and to address current issues with the sign provisions. He stated there was a Supreme Court case in Gilbert, Arizona that ruled signs codes must be content neutral. He reviewed changes made to address non-conforming signs to follow Minnesota State Statutes for replacement. He indicated they have increased the number of temporary signs for new businesses. Brixius outlined the signs allowed with and without a permit in each of the City’s zoning districts. He reported that the penalties for violation of the sign code will be addressed through Title 1 of the City Code which will allow staff to utilize the administrative fine for enforcement rather than litigation. He stated that unless Council has any concerns with the changes, the Planning Commission is set to hold a public hearing in December. Hendrickson inquired about window signs. Brixius reported that windows signs are allowed up to 20% of the total window area and includes any logo, emblem, literature, etc. He stated the 20% could be per window or overall total window area. However, tinted windows would be treated differently. D. Fire - None E. City Clerk – None F. Public Works/Engineering 1). Resolution of Support for CSAH 19 Improvements Nafstad reported the resolution of support is needed to help secure federal funding for improvements to CSAH 19 from I-94 to 70th Street NE. He has been working with the City of Otsego and Wright County on the application and it is due in January 2016 for funding in 2020. Olson inquired how the cost share is divided. Nafstad reported that it is based on the County’s Cost Participation Policy that was changed quite significantly in the last year that allows more participation on the County’s part. If it is a County-initiated project, they would fund 100% of right- of-way and approximately 90% of the County improvements. Nafstad reported the County would not cover curb and gutter, storm sewer improvements, turn lanes, medians, and decorative lights. Vetsch inquired why the turn lanes would be a City cost and Nafstad replied because those are considered necessary for local traffic. Nafstad clarified that the improvements would be a divided four lane road north of I-94 similar to the southern part of CSAH 19. He stated before any improvements, the Council would have the opportunity to review the plans and costs. Agenda Page 7 DRAFTCity Council Meeting Minutes Page 5 Regular Meeting of November 16, 2015 Motioned by Hendrickson, seconded by Vetsch, to approve Resolution No. 2015-040 Supporting the Construction of and Participation in a Portion of the Funding for Improvements to CSAH 19 (Labeaux Avenue NE) from North of Interstate 94 through 70th Street NE. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. G. Building – None H. Legal – None I. Administration 1). Development Application Process Requirements Nafstad reported that staff is seeking feedback from Council on possible code language to verify that an applicant for a development application is current on taxes and City/County invoices before accepting the development application. He stated that several other cities have adopted such language, so that any costs incurred over the application fee and escrow may be recouped. There is less of a chance of recovering those costs if a property is delinquent on taxes. Couri clarified that it would be a condition of acceptance for a development application. Hudson inquired if they would be creating a situation where a property owner keeps running into obstacles and eventually must let the property go. Couri replied that any City costs would be much smaller than any engineering or consulting services needed for a development. Currently, if costs exceed the escrow, the code requires them to pay City invoices for those excess costs. Couri explained that City does not want to lose money when a developer/property owner loses money nor do they want to receive extra money when they make money, but to just break even. Hudson stated he felt more comfortable with the idea. Brixius stated that the Planning Commission will need to hold a public hearing for any revisions to the zoning code. Council directed staff to move forward. 2). City Administrator’s Update Nafstad reported that the Finance Department has received the Certificate of Excellence in Financial Reporting for the 2014 Comprehensive Annual Financial Report. Nafstad reported there was a commercial lot in Prairie Run that went tax forfeit and was recently purchased. The purchaser will be looking to ask Council at the December 7, 2015 meeting to greatly reduce the special assessments on the commercial lot. Nafstad stated that a public hearing is set for that meeting for Council to make a decision on whether to re-impose the full assessments or reduce them. Olson stated he would like to see the financial figures for the Prairie Run development before they make such a decision. Nafstad stated that he met with Lockridge Grindal Nauen (LGN) regarding Federal lobbying services. He stated there were several levels of service that LGN provided in their proposal. They proposed the following options: Agenda Page 8 DRAFTCity Council Meeting Minutes Page 6 Regular Meeting of November 16, 2015 Option A $1,500 monthly Basic services Option B $2,000 monthly Basic services and services for two of Albertville’s federal priorities with Congressional advocating, monthly reporting, and policy analysis Option C $2,500 monthly Includes A and B as well as other services Council discussed the benefits of each option. Nafstad reported that lobbying services facilitated the Washington D.C. trip two years ago and the I-94 expansion and Wastewater Treatment Facility improvements will both be important initiatives. He stated that Andy Burmeister will be present at the December 7, 2015 meeting to go over services. Hudson would like to use the general fund reserves for lobbying services since the $35,000 for lobbying was taken out of the budget. Olson stated they would need to slowly add the costs into the annual budget to maintain lobbying services. Motioned by Olson, seconded by Hendrickson, to select Option C. Ayes: Hendrickson, Hudson, Olson, and Sorensen. Nays: Vetsch. Absent: None. MOTION DECLARED CARRIED. Vetsch stated he preferred Option B. Nafstad inquired about year-end evaluations for him and the City consultants and inquired if the December 7, 2015 meeting would work. Council felt there were a number of other meetings that night and it may be busy. Council suggested they be done in January. Nafstad clarified that consultant appointments would occur at the first meeting in January. 9. ANNOUNCEMENTS AND/OR UPCOMING MEETINGS Olson inquired if the Council would like to recognize Assistant Fire Chief Tate Mills for Fire Officer of the Year. Nafstad stated he would check with Chief Bullen to see when the years of service awards would be held. Olson suggested that if the awards are given in the spring, they should recognize Mills at an earlier meeting. November 23 Joint Powers Water Board, 6:00 p.m. Parks Committee, 8:00 p.m. November 26 & 27 Thanksgiving, City Offices Closed November 30 Joint Governance Meeting, 6:00 p.m., Middle School West December 7 Truth-in-Taxation Hearing, 6:30 p.m. City Council, 7:00 p.m. December 14 STMA Ice Arena Board, 6:00 p.m. December 21 City Council, 7:00 p.m. December 24 & 25 Christmas Eve/Day, City Offices Closed December 28 Joint Powers Water Board, 6:00 p.m. Dec. 31/Jan. 1 New Year’s Day City Offices Closed Agenda Page 9 DRAFTCity Council Meeting Minutes Page 7 Regular Meeting of November 16, 2015 10. ADJOURNMENT Motioned by Hendrickson, seconded by Olson, to adjourn the meeting at 8:40 p.m. Ayes: Hendrickson, Hudson, Olson, Sorensen, and Vetsch. Nays: None. Absent: None. MOTION DECLARED CARRIED. Respectfully submitted, ___________________________________ Kimberly A. Olson, City Clerk Agenda Page 10 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 Finance Bills Report (RCA).doc Meeting Date: December 7, 2015 December 3, 2015 SUBJECT: CONSENT - FINANCE – PAYMENT OF BILLS RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Authorize the Monday, December 7, 2015 payment of the claims as presented except the bills specifically pulled, which are passed by separate motion. The claims listing has been provided to Council as a separate document. The claims listing is available for public viewing at City Hall upon request. BACKGROUND: The City processes claims on a semi-monthly basis. The bills are approved through their respective departments and administration and passed onto the City Council for approval. KEY ISSUES: • Account codes starting with 810 are STMA Arena Expenses/Vendors (bolded) and key issues will be presented in the claims listing document. POLICY/PRACTICES CONSIDERATIONS: It is the City’s policy to review and approve payables on a semi-monthly basis. FINANCIAL CONSIDERATIONS: City staff has reviewed and recommends approval of payments presented. LEGAL CONSIDERATIONS: The Mayor and Council have the authority to approve all bills pursuant to Minnesota State Law, which requires all bills to be paid in a timely manner, generally within 30 days unless one party determines to dispute the billing. Responsible Person: Tina Lannes, Finance Director Submitted through: Adam Nafstad, City Administrator-PWD Attachment: List of Claims (under separate cover) Agenda Page 11 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\120715\Investment RCA 2015.doc Meeting Date: December 7, 2015 December 2, 2015 SUBJECT: FINANCE DEPARTMENT – INVESTMENT POLICY RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve Resolution No. 2015-041 adopting the City of Albertville Investment Policy 2015 Version. BACKGROUND: The City of Albertville adopted an investment policy in 2004 and updated it in 2010. In your packets is a 2015 investment policy. The purpose of the policy is to establish standards governing the investment of City funds. It is the City’s policy that available funds be invested to the maximum extent possible, at the highest rates obtainable at the time of the investment, in conformance with the legal and administrative guidelines outlined here and that the City receives the highest quality investment services. The City shall invest only in the instruments permitted by Minnesota Statue 118A.03-118A.05. The changes made from 2010 adopted policy are to match the state Statue. It was recommended that we take out the list of investments allowed to just referencing the State Statute as the state makes changes every few years and this will allow the policy to change with the State Statute. KEY ISSUES: • Provides staff the ability to earn more than .25% POLICY CONSIDERATIONS: The Council reviews and approves policies. FINANCIAL CONSIDERATIONS: None. LEGAL CONSIDERATIONS: Minnesota Statute 118A.03-118A.05 regulates City Investments. Investment compliance is audited annually by KDV for compliance with state and federal laws. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Investment Policy 2015 Resolution No. 2015-041 Agenda Page 12 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-041 A RESOLUTION ADOPTING THE CITY OF ALBERTVILLE IVESTMENT POLICY 2015 WHEREAS: the Council of the City of Albertville, County of Wright, Minnesota, designates depositories and authorizes the City Finance Director to make all investments for the City in accordance with Minnesota Statute 118A.02. WHEREAS: the City has established an Investment Policy to establish standards governing the investment of the City funds to insure that available funds are invested to the maximum extent possible and at the highest rates obtainable at the time of investment. NOW THEREFORE BE IT RESOLVED: that the City Council of the City of Albertville does hereby adopt the attached Investment Policy establishing standards governing the investment of City Funds. Adopted by the City Council of the City of Albertville this 7th day of December, 2015. ________________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 13 CITY OF ALBERTVILLE INVESTMENT POLICY Drafted: December 2, 2015 Adopted: December 2, 2015 I. Purpose: The purpose of this Policy is to establish standards governing the investment of City funds. It is the City’s policy that available funds be invested to the maximum extent possible, at the highest rates obtainable at the time of investment, in conformance with the legal and administrative guidelines outlined here and that the City receives the highest quality investment services. II. Applicability: This policy applies to all investments made by the City, irrespective of fund. III. Delegation: The City Council designates depositories and authorizes the City Finance Director to make all investments for the City in accordance to Minnesota Statute 118A.02. IV. Scope: The City will invest only in the following instruments permitted by Minnesota Statute 118A.03-118A.05: V. Objectives: The City’s investment objective is to preserve capital while attaining a market- average rate yield consistent with cash flow needs. Safety. Safety of principal is the foremost objective. Investments shall be undertaken so as to insure the preservation of capital in the overall portfolio. Diversification is required to limit potential losses to no more than the income generated by the portfolio. Agenda Page 14 Liquidity. The City’s portfolio will be structured to be sufficiently liquid to meet all operating requirements, which might be reasonably anticipated. It is essential that money is always available when needed. Yield. The City’s investment portfolio shall be designed to attain a market- average rate of return during budgetary and economic cycles, taking into account the City’s investment risk constraint and the cash flow characteristics of the portfolio. Everyone participating in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City’s ability to govern effectively. VI. Maximum Maturities: The City will attempt to batch its investments with cash flow needs. Unless directly matched to a specific cash flow, the City will not invest in securities maturing more than an average expected life of ten (10) years from the date of purchase or in accordance with state statues and ordinances. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds such as local government investment pools or money market funds to ensure that appropriate liquidity is maintained to meet ongoing obligations. VII. Authorized Financial Institutions and Dealers: The City will conduct its investment transactions with several legal, competing, reputable investment security dealers. The vendor’s selected will have a verifiable history of service to the governmental entities and familiarity with Minnesota Statues governing investment restrictions. The City will obtain a written confirmation from each vendor that such vendor is familiar with Minnesota State statutes regarding municipal investments and the City’s investment policy and agrees to comply with both. VIII. Cash Management Procedures: Cash management is essential to a good investment program. The Finance Director has responsibility to organize and establish procedures for effective cash management, based on the following guidelines. i. Cash flow projections will be prepared quarterly. ii. The investment records will be reviewed and updated as investments mature or are purchased. iii. The investment records will be reconciled to the financial records each month. Agenda Page 15 iv. The City Finance Director will submit a report of the City’s investment and cash position to the City Council semi-annually. v. Interest will be allocated to the various City funds at least semi- annually. vi. The City Administrator and the City Finance Director shall meet annually to plan general strategies, check results, review the investment policy and make recommendations to the council. Agenda Page 16 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 special assessment reassessment RCA.doc Meeting Date: December 7, 2015 December 3, 2015 SUBJECT: REASSESSMENT OF LOT 2, BLOCK 1, PRAIRIE RUN FOR SPECIAL ASSESSMENTS OUTSTANDING UPON TAX FORFEITURE OF THE PROPERTY. RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve Resolution No. 2015-042, Resolution Adopting Reassessment on Tax Forfeited Property. BACKGROUND: In 2005, the City installed storm sewer, sanitary sewer, municipal water, site grading, and street improvements to the Prairie Run subdivision (Prairie Run Improvements) and special assessed the costs of such improvements back to the properties in the subdivision. At the time, the owners of the properties (Gold Key Development and Robert Heuring) agreed among themselves as to the amount of the assessments to be levied on each lot. Both property owners agreed to waive the right to appeal such assessments. In 2005, the City special assessed the cost of the Prairie Run Improvements to the properties in the subdivision. In 2007, the City widened CSAH 19 in cooperation with Wright County. The City special assessed the benefiting commercial properties in the area. The Prairie Run Improvements carried an interest rate of 6.5% while the CSAH 19 Improvement carried an interest rate of 6.1%. The owner of Lot 2, Block 1, Prairie Run, (“Property”) made no special assessment payments on the Property at all. The Property went tax forfeit in 2013 or 2014. In 2015, the Property was sold at auction by the County for a nominal price (about $250). The purchaser of the property was informed by the County before he purchased the Property that the City may wish to reassess the entire amount of the special assessments that were cancelled. The outstanding special assessments that were cancelled at tax forfeiture were as follows: 1. CSAH 19 Improvement $ 9,941.20 2. Prairie Run Improvements $182,159.78 Total Assessments $192,100.98 The City’s policy over the past several years has been to attempt to break even on the Prairie Run development. The City incurred both construction costs and litigation costs related to this development, all of which would have been recoverable from the developer and or its letter of credit had the developer not gone bankrupt and the issuer of the letter of credit become insolvent. To date, the City has acquired all of the undeveloped residential lots, has sold some, and has the remainder under purchase agreement. The City chose not to acquire the commercial property Agenda Page 17 Mayor and Council Request for Action – December 7, 2015 Reassessment of Special Assessments Page 2 of 3 M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 special assessment reassessment RCA.doc Meeting Date: December 7, 2015 because it believed that the market for vacant commercial land will take several years to recover sufficiently to pay the special assessments that would be reassessed against the Property. City Staff believes that upon sale of all of the residential lots, the City will have broken even on the Prairie Run residential properties and will be short about the amount of the $192,100.98 special assessments outstanding on the commercial property. The new owner of the Property has met with staff asking that the Property not be reassessed for any of the prior special assessments, or that such reassessments be dramatically reduced. Staff informed the owner that it could not support a reduction as the City is still out this money and other properties are still paying their special assessments levied by the City. The owner is expected to appear before the City Council at the December 7th public hearing on this matter. KEY ISSUES: • The City has the statutory right to reassess the cancelled special assessments in the amount due at the time of cancellation. • The County has the Property valued at $244,500 for tax purposes, but it sold the property for $250, which, when added to the $192,100.98 in outstanding special assessments, is far less than the assessed value of the lot. • The new owner recently had the property appraised at $150,000. • If the City were to reduce the amount to be reassessed, it cannot later re-impose the full amount. Any reduction will be permanent. • If the City reassesses the full amount, there is a possibility that the new owner will not pay the property taxes and the property may again go through tax forfeiture in approximately five (5) years. • Many other properties are still paying outstanding special assessments from the CSAH 19 Improvement. All special assessments from the Prairie Run project have either been paid (on the lots that were built upon) or were wiped out in tax forfeiture, to be recovered in part upon the sale of the City-owned residential properties. POLICY/PRACTICES CONSIDERATIONS: To date, the City’s policy has been to attempt to break even on the Prairie Run development as a whole. The City acquired the residential lots in an effort to control the marketing of these lots in a manner that would ensure that an individual did not purchase them cheaply from the County and then fail to pay the taxes on the properties when the special assessments were re-imposed. The City thought it best to let the commercial property remain in tax forfeiture until the market for vacant commercial land recovered sufficiently to support the reassessment of the entire amount of the outstanding special assessments. FINANCIAL CONSIDERATIONS: Any reduction in the amount of special assessments to be reassessed will likely mean that the City will never recover that money and will not be able to reimburse itself fully for the money spent on this development. City Staff estimates that the City will be very close to breakeven if the full amount of the special assessments on the Property are re-imposed and ultimately collected. Agenda Page 18 Mayor and Council Request for Action – December 7, 2015 Reassessment of Special Assessments Page 3 of 3 M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 special assessment reassessment RCA.doc Meeting Date: December 7, 2015 LEGAL CONSIDERATIONS: The City Council has the authority to reduce the amount of special assessments to be re-imposed (or eliminate them altogether). If the City chooses to reduce the special assessments that it re-imposes now, it will likely not be able to increase the amount of these assessments in the future. Department/Responsible Person: Mike Couri, City Attorney and Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-042 Agenda Page 19 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-042 RESOLUTION ADOPTING REASSESSMENT ON TAX FORFEITED PROPERTY WHEREAS: The City of Albertville has previously levied special assessments on Lot 2, Block 1, T Square Business Park, Wright County, Minnesota (“Property”) related to improvements to County State Aid Highway No. 19 (“CSAH 19 Improvements”) and related to the installation of street, curb, gutter, municipal water, sanitary sewer, storm sewer, ponding and related municipal improvements serving the property (“Prairie Run Improvements”). WHEREAS: The Property has gone tax forfeit and the special assessments have been cancelled upon the tax forfeiture of said Property. WHEREAS: The Property has been sold at auction to a private party. WHEREAS: Minn. Stat. 429.071, Subd. 4 authorizes the City to reassess the amount of the unpaid special assessments to the Property upon its return to private ownership. WHEREAS: The City has proposed reassessing the Property in the amounts of the unpaid special assessments outstanding at the time of the cancellation of said special assessments. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, WRIGHT COUNTY, MINNESOTA: 1. Such proposed Reassessment Roll, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. The assessment levied by this resolution shall be payable as follows: A. The CSAH 19 Improvement reassessment in the amount of $9,941.20 shall be payable in equal annual principal installments extending over a period of 7 years, the first of the installments to be payable on or before the first Monday of January, 2016, and shall bear interest at a rate of 6.1% per annum from the date of this resolution until December 31, 2016. To each subsequent installment when due shall be added interest for one year on all unpaid installments. B. The Prairie Run Improvements reassessment in the amount of $182,159.78 shall be payable in equal annual principal installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday of January, 2016, and shall bear Agenda Page 20 City of Albertville Meeting of December 7, 2015 Resolution No. 2015-042 Page 2 interest at a rate of 6.5% per annum from the date of this resolution until December 31, 2016. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to the certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Clerk, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this Resolution; and he may, at any time thereafter, pay to the City Clerk the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year, except that payment may be made in full by January 7, 2016 with no interest accruing on said reassessment. 4. The Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County, and such assessment shall be collected and paid over in the same manner as other taxes. Adopted by the Albertville City Council this 7th day of December, 2015. _______________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 21 City of Albertville Meeting of December 7, 2015 Resolution No. 2015-042 Page 3 REASSESSMENT ROLL PID # PROJECT AMOUNT OF REASSESSMENT 101111001020 CSAH 19 Improvement $ 9,941.20 101111001020 Prairie Run Improvements $182,159.78 Agenda Page 22 Albertville Parks Committee meeting minutes November 23, 2015 Attendees: Tim Guimont, Andy Swanson, Sharon Oakvik, LeRoy Berning, John Vetsch City park/church fence - City is looking to replacine the fence between the church and Central Park. Westwind Park - LeRoy brought some plans he drew up for suggested improvements to Westwind Park. The committee will consider the suggestions and discuss it further at the January meeting. Parks update - Oakside Park gazebo is complete, turned out nice. - Four new boards were installed at the hockey rink. They had to be retrofitted. This is a trial and more new boards will likely be added in the future if they work well. - Merry-go-round: estimate to sandblast and powdercoat is $1,000. Tim suggests having the merry-go-round in Four Seasons Park repaired to see how it turns out, and then consider also having the one in Central Park, which is bent, repaired. - There was more discussion about replacing the fence along first baseline at baseball field, with consideration of adding a net to the top. - Committee requests $150,000 for baseball field lights and other park upgrades, majority of upgrades will be for Westwind Park. Albertville Lions have committed to help fund the baseball field lighting project, and other sources have shown interest. Next meeting: January 25, 8:00 Minutes recorded and prepared by Andy Swanson, andy.swanson99@gmail.com; 763-370-2428 Agenda Page 23 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 Final Levy and Budget for 2016.doc Meeting Date: December 7, 2015 December 2, 2015 SUBJECT: FINANCE DEPARTMENT – 2016 PROPERTY TAX LEVY AND FINAL BUDGET RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following: MOTION TO: Approve Resolution No. 2015-XXX entitled a Resolution Adopting Property Tax Levy Collectible in 2015 (for 3.98%); and, approve Resolution No. 2015-XXX entitled a Resolution Adopting the 2015 Final Budget. OR MOTION TO: Approve Resolution No. 2015-XXX entitled a Resolution Adopting Property Tax Levy Collectible in 2015 (for 4.98%); and, approve Resolution No. 2015-XXX entitled a Resolution Adopting the 2015 Final Budget. BACKGROUND: On September 8, 2015, the City Council certified a preliminary levy of $3,671,240 to Wright County. Based on the preliminary levy, Wright County has prepared and mailed projected tax statements to all residents. On November 2, 2015 the City Council directed staff to reduce the budget and levy by $35,000 (lobbying capital funds) and bring back a 3.98% levy and the corresponding budget. On Monday, December 7, the City Council will host a public hearing, known as a Truth-In-Taxation, for the Council to take public comments on the proposed budget and levy. Following public comments, the City Council at a regularly convened meeting may approve or make adjustments to the final levy, which is then certified to Wright County for taxes payable in 2015. Coinciding with the adoption of the City’s Levy, the City Council officially adopts a 2015 budget detailing projected revenue and expenses. Staff has provided two options for the final budget and levy pending the decision of the previously discussed $35,000. KEY ISSUES: • The public Truth-in-Taxation hearing was held prior to Council approvals. • The proposed budget and levy represents a total levy increase of 3.98%. or 4.98% if adding back in the $35,000 • The debt service budget has decreased by $28,276 and the general fund operations levy has increased by $167,370 for the 3.98% levy increase or $202,370 for the 4.98% levy increase. • The proposed budget includes anticipated LGA funding (estimated $90,462) which will assist with infrastructure expenses. • Staff provides the final levy to the County Auditor no later than end of business day December 15, 2015 . POLICY CONSIDERATIONS: The Council reviews and approves all budgets and tax levies. Agenda Page 24 Mayor and Council Communication – December 7, 2015 Finance – 2016 Property Tax Levy and Budget Page 2 of 2 FINANCIAL CONSIDERATIONS: In reviewing the projected 2016 budget, staff anticipates maintaining the Office of the State Auditors recommendation of 40% of the budget in designated funds for general reserve. Responsible Person/Department: Tina Lannes, Finance Director Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-XXX and Resolution No. 2015-XXX Resolution No. 2015-XXX and Resolution No. 2015-XXX Agenda Page 25 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-043 A RESOLUTION ADOPTING THE 2015 TAX LEVY COLLECTIBLE IN 2016 BE IT RESOLVED by the C ouncil of the City of Albertville, County of Wright, Minnesota, that the following sums of money be levied for the current year, collectible in 2016, upon taxable property in the City of Albertville for the following purposes: Total Levy $3,636,240 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the county auditor of Wright County, Minnesota. Adopted by the City Council of the City of Albertville this 7th day of December, 2015. ________________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 26 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-044 A RESOLUTION ADOPTING THE 2016 FINAL BUDGET WHEREAS: the City Council of the City of Albertville has adopted a final budget. WHEREAS: the Albertville City Council has adopted a final tax levy to be placed upon the taxable property in the City of Albertville. WHEREAS: the Albertville City Council desires to reserve within the General Fund those monies designated as capital outlays within various budget classifications, such that those monies can be disbursed only for those capital outlays so specified within the budget. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA: 1. The attached budget is hereby adopted as the final budget for the City of Albertville for the period January 1, 2016, through December 31, 2016. 2. All monies designated within the budget, as capital outlays shall be reserved within the Capital Reserves Fund, such that those monies can be disbursed only for those capital outlays so specified within the budget. 3. The Albertville City Council has hereby complied with Minnesota Statutes. 4. The Finance Director is hereby authorized to transmit certification of compliance with Minnesota Statutes to the Commissioner of Revenue as required. Adopted by the Albertville City Council this 7th day of December, 2015. ________________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 27 City of Albertville Resolution No. 2015-044 Page 2 2016 PRELIMINARY BUDGET SUMMARY COMPARISON GENERAL FUND General Fund Revenue: 2015 Budget 2016 Budget Difference 15 to 16 $ Difference 15 to 16 % 31010 Current Ad Valorem Taxes 1,683,019 1,812,084 $129,065 7.67% 32100 Business Licenses & Permits 22,000 27,000 $5,000 22.73% 32110 Liquor Licenses 29,150 29,500 $350 1.20% 32120 3.2 Liquor Licenses 150 75 -$75 -50.00% 32150 Sign Permits 1,500 1,200 -$300 -20.00% 32210 Building Permits 75,000 79,000 $4,000 5.33% 32240 Animal Licenses 500 600 $100 20.00% 33401 LGA Revenue expected 87,000 90,462 $3,462 3.98% 33405 Police Aid 28,000 30,000 $2,000 7.14% 33406 Fire Aid 43,000 43,000 $0 0.00% 33422 Other State Aid Grants 9,500 10,000 $500 5.26% 34000 Charges for Services 2,000 2,000 $0 0.00% 34005 Engineering As Built Fee 2,000 3,000 $1,000 50.00% 34101 Leases - City Property 1,440 $1,440 100.00% 34103 Zoning & Subdivision Fees 1,500 2,000 $500 33.33% 34104 Plan Check Fee 32,000 38,000 $6,000 18.75% 34107 Title Searches 1,500 2,000 $500 33.33% 34113 Franchise Fee - Cable 67,500 72,000 $4,500 6.67% 34202 Fire Protection Contract Charges 225,710 253,304 $27,594 12.23% 34780 Rental Fees 10,000 10,000 $0 0.00% 34950 Other Revenues 10,500 8,000 -$2,500 -23.81% 34110 Arena 11,964 12,323 $359 3.00% 34112 Electric Franchise Fee 115,000 115,000 $0 0.00% 36210 Interest Earnings 25,000 25,000 $0 0.00% 102 Capital Levy 864,160 902,465 $38,305 4.43% Total Revenues 3,347,653 3,569,452 $221,799 6.63% Agenda Page 28 City of Albertville Resolution No. 2015-044 Page 3 General Fund Department Expenditures: 2015 Budget 2016 Budget Difference 15 to 16 $ Difference 15 to 16 % 41000 General Government 30,000 30,000 $0 0.00% 41100 Council 38,419 40,059 $1,640 4.27% 41300 Combined Administrator/Engineer 87,645 89,858 $2,213 2.53% 41400 City Clerk 97,380 98,256 $876 0.90% 41440 Elections 15,500 15,500 $0 0.00% 41500 Finance 107,103 111,757 $4,654 4.35% 41550 City Assessor 29,000 29,870 $870 3.00% 41600 City Attorney 40,000 40,000 $0 0.00% 41700 City Engineer 20,000 20,000 $0 0.00% 41800 Economic Development 5,000 5,000 $0 0.00% 41910 Planning & Zoning 38,507 41,507 $3,000 7.79% 41940 City Hall 117,468 131,696 $14,228 12.11% 42000 Fire Department 429,433 442,808 $13,376 3.11% 42110 Police 613,020 684,750 $71,730 11.70% 42400 Building Inspection 154,468 159,144 $4,675 3.03% 42700 Animal Control 4,080 5,000 $920 22.55% 43100 Public Works - Streets 268,064 301,624 $33,560 12.52% 45000 Culture & Recreation 67,910 69,809 $1,899 2.80% 45100 Parks & Recreation 239,495 269,348 $29,854 12.47% 43160 Electric street lights 81,000 81,000 $0 0.00% 102 Capital 102 864,161 902,465 $38,304 4.43% Total Expenditures 3,347,653 3,569,452 221,799 6.63% Levy 2015 2016 Difference 15 to 16 % General Fund & EDA 1,683,019 1,812,084 7.67% Capital Levy 864,160 902,465 4.43% Total Tax Levy (Oper. Levy) 2,547,179 2,714,549 6.57% 357 GO Improvement Bond 03 275,948 273,743 354 Bonds 03 PF Lease Rev 80,800 78,721 359 City Hall 05 262,452 266,085 360 Go Imp 2012A CSAH 19 26,157 26,157 358 PW Facility 04 103,449 100,824 361 Go Imp 2012A Lach 31,600 31,600 362 Go Imp 2012A Ind Park 109,561 84,561 468 I-94 60,000 60,000 Total Debt Service Levy 949,967 921,691 Debt Levy -2.98% Total Levy 3,497,146 3,636,240 Total Levy 3.98% Agenda Page 29 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-043 A RESOLUTION ADOPTING THE 2015 TAX LEVY COLLECTIBLE IN 2016 BE IT RESOLVED by the C ouncil of the City of Albertville, County of Wright, Minnesota, that the following sums of money be levied for the current year, collectible in 2016, upon taxable property in the City of Albertville for the following purposes: Total Levy $3671,240 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the county auditor of Wright County, Minnesota. Adopted by the City Council of the City of Albertville this 7th day of December, 2015. ________________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 30 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-044 A RESOLUTION ADOPTING THE 2016 FINAL BUDGET WHEREAS: the City Council of the City of Albertville has adopted a final budget. WHEREAS: the Albertville City Council has adopted a final tax levy to be placed upon the taxable property in the City of Albertville: WHEREAS: the Albertville City Council desires to reserve within the General Fund those monies designated as capital outlays within various budget classifications, such that those monies can be disbursed only for those capital outlays so specified within the budget: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, MINNESOTA: 1. The attached budget is hereby adopted as the final budget for the City of Albertville for the period January 1, 2016, through December 31, 2016. 2. All monies designated within the budget, as capital outlays shall be reserved within the Capital Reserves Fund, such that those monies can be disbursed only for those capital outlays so specified within the budget. 3. The Albertville City Council has hereby complied with Minnesota Statutes. 4. The Finance Director is hereby authorized to transmit certification of compliance with Minnesota Statutes to the Commissioner of Revenue as required. Adopted by the Albertville City Council this 7th day of December, 2015. ________________________________ Jillian Hendrickson, Mayor Attest: _________________________________ Kimberly A. Olson, City Clerk Agenda Page 31 City of Albertville Resolution No. 2015-044 Page 2 2016 PRELIMINARY BUDGET SUMMARY COMPARISON GENERAL FUND General Fund Revenue: 2015 Budget 2016 Budget Difference 15 to 16 $ Difference 15 to 16 % 31010 Current Ad Valorem Taxes 1,683,019 1,812,084 $129,065 7.67% 32100 Business Licenses & Permits 22,000 27,000 $5,000 22.73% 32110 Liquor Licenses 29,150 29,500 $350 1.20% 32120 3.2 Liquor Licenses 150 75 -$75 -50.00% 32150 Sign Permits 1,500 1,200 -$300 -20.00% 32210 Building Permits 75,000 79,000 $4,000 5.33% 32240 Animal Licenses 500 600 $100 20.00% 33401 LGA Revenue expected 87,000 90,462 $3,462 3.98% 33405 Police Aid 28,000 30,000 $2,000 7.14% 33406 Fire Aid 43,000 43,000 $0 0.00% 33422 Other State Aid Grants 9,500 10,000 $500 5.26% 34000 Charges for Services 2,000 2,000 $0 0.00% 34005 Engineering As Built Fee 2,000 3,000 $1,000 50.00% 34101 Leases - City Property 1,440 $1,440 100.00% 34103 Zoning & Subdivision Fees 1,500 2,000 $500 33.33% 34104 Plan Check Fee 32,000 38,000 $6,000 18.75% 34107 Title Searches 1,500 2,000 $500 33.33% 34113 Franchise Fee - Cable 67,500 72,000 $4,500 6.67% 34202 Fire Protection Contract Charges 225,710 253,304 $27,594 12.23% 34780 Rental Fees 10,000 10,000 $0 0.00% 34950 Other Revenues 10,500 8,000 -$2,500 -23.81% 34110 Arena 11,964 12,323 $359 3.00% 34112 Electric Franchise Fee 115,000 115,000 $0 0.00% 36210 Interest Earnings 25,000 25,000 $0 0.00% 102 Capital Levy 864,160 937,465 $73,305 8.48% Total Revenues 3,347,653 3,604,452 $256,799 7.67% Agenda Page 32 City of Albertville Resolution No. 2015-044 Page 3 General Fund Department Expenditures: 2015 Budget 2016 Budget Difference 15 to 16 $ Difference 15 to 16 % 41000 General Government 30,000 30,000 $0 0.00% 41100 Council 38,419 40,059 $1,640 4.27% 41300 Combined Administrator/Engineer 87,645 89,858 $2,213 2.53% 41400 City Clerk 97,380 98,256 $876 0.90% 41440 Elections 15,500 15,500 $0 0.00% 41500 Finance 107,103 111,757 $4,654 4.35% 41550 City Assessor 29,000 29,870 $870 3.00% 41600 City Attorney 40,000 40,000 $0 0.00% 41700 City Engineer 20,000 20,000 $0 0.00% 41800 Economic Development 5,000 5,000 $0 0.00% 41910 Planning & Zoning 38,507 41,507 $3,000 7.79% 41940 City Hall 117,468 131,696 $14,228 12.11% 42000 Fire Department 429,433 442,808 $13,376 3.11% 42110 Police 613,020 684,750 $71,730 11.70% 42400 Building Inspection 154,468 159,144 $4,675 3.03% 42700 Animal Control 4,080 5,000 $920 22.55% 43100 Public Works - Streets 268,064 301,624 $33,560 12.52% 45000 Culture & Recreation 67,910 69,809 $1,899 2.80% 45100 Parks & Recreation 239,495 269,348 $29,854 12.47% 43160 Electric street lights 81,000 81,000 $0 0.00% 102 Capital 102 864,161 937,465 $73,304 8.48% Total Expenditures 3,347,653 3,604,452 256,799 7.67% Levy 2015 2016 Difference 15 to 16 % General Fund & EDA 1,683,019 1,812,084 7.67% Capital Levy 864,160 937,465 8.48% Total Tax Levy (Oper. Levy) 2,547,179 2,749,549 7.94% 357 GO Improvement Bond 03 275,948 273,743 354 Bonds 03 PF Lease Rev 80,800 78,721 359 City Hall 05 262,452 266,085 360 Go Imp 2012A CSAH 19 26,157 26,157 358 PW Facility 04 103,449 100,824 361 Go Imp 2012A Lach 31,600 31,600 362 Go Imp 2012A Ind Park 109,561 84,561 468 I-94 60,000 60,000 Total Debt Service Levy 949,967 921,691 Debt Levy -2.98% Total Levy 3,497,146 3,671,240 Total Levy 4.98% Agenda Page 33 Mayor and Council Request for Action M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 Tax forfeit properties 2015 RCA revised.doc Meeting Date December 7, 2015 December 7, 2015 SUBJECT: LEGAL – REQUEST FOR THE STATE TO DEED TAX FORFEIT PROPERTIES TO THE CITY RECOMMENDATION: It is respectfully requested that the Mayor and Council consider the following motion: MOTION TO: Adopt Resolution No. 2015-045 Requesting The State of Minnesota to Deed Tax Forfeited Lands to the City of Albertville. BACKGROUND: Earlier this year, Wright County forwarded to the City a list of four properties that have gone tax forfeit in the City of Albertville. On July 20, 2015, the City Council passed a resolution expressing its intent to acquire three of the four properties for public use (one as a road, one as a stormwater pond, and one as a wetland) and forwarded the resolution onto the County for processing. The County Attorney recently requested that the City modify the resolution, citing different statutory provisions than what were contained in the July 20, 2015 resolution. This change is purely technical in nature and does not change the properties the City intends to acquire nor does it change the use the property will be put to. We do not yet know what price these properties will be valued at. The road property should be deeded to the City for free, but there may be a small charge for the other two properties. Those amounts will be determined by the County as the process moves forward. The July 20, 2015 resolution has been amended as requested by the County Attorney. KEY ISSUES: • The changes requested by the County are technical in nature. • Once the revised resolution is passed and sent to the County, the resolution will be placed on the County Board meeting agenda for action. POLICY CONSIDERATIONS: All three of these properties are similar to properties that the City already owns (i.e. ponds, wetlands, and right-of-way) and all will serve a local public purpose. Ownership of these properties is consistent with current City policy. FINANCIAL CONSIDERATIONS: There are no significant financial considerations. The State will deed the street property to the City for free. The other two properties are not developable and would likely not sell at a tax sale. City staff expects the County to sell these to the City for nominal consideration, although the exact amount must still be set by the County Board. These properties generate little or no tax dollars for the City (assuming taxes were to be paid), so City acquisition will have a negligible impact on tax revenues. LEGAL CONSIDERATIONS: The City Attorney recommends acquiring these properties from the State now while the City can do so with little or no cost. Ownership by the City will Agenda Page 34 Mayor and Council Request for Action – December 7, 2015 Request for the State to Deed Tax Forfeit Properties to the City Page 2 of 2 M:\Public Data\City Council\Council Packet Information\2015\120715\2015-12-07 Tax forfeit properties 2015 RCA revised.doc Meeting Date: December 7, 2015 pre-empt any future complications should a private party acquire these properties and try to assert ownership rights in them. Responsible Person/Department: Mike Couri, City Attorney Submitted Through: Adam Nafstad, City Administrator-PWD Attachments: Resolution No. 2015-045 Agenda Page 35 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-045 RESOLUTION REQUESTING THE STATE OF MINNESOTA TO DEED TAX FORFEITED LANDS TO THE CITY OF ALBERTVILLE WHEREAS: Wright County informed the City that several properties in the City have been forfeited for failure to pay taxes and that the City could acquire such properties for a lawful public use under Minn. Stat. 282.01, Subd. 1a. WHEREAS: the City desires to acquire that parcel of land assigned property identification number 101500014313 for purposes of preserving use as a road pursuant to Minn. Stat. § 282.01, Subd. 1a(e)(1). WHEREAS: the City desires to acquire that parcel of land assigned property identification number 101500011400 for purposes of preserving existing wetlands pursuant to Minn. Stat. § 282.01, Subd. 1a(e). WHEREAS: the City desires to acquire that parcel of land assigned property identification number 101086000020 for continued use as a storm water holding pond pursuant to Minn. Stat. § 282.01, Subd. 1a(e). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALBERTVILLE, WRIGHT COUNTY, MINNESOTA: 1. The Public Works Director is directed to notify Wright County in writing that the City of Albertville intends on acquiring that parcel of land assigned property identification number 101500014313 for use as a road, a lawful public purpose under Minn. Stat. 282.01, Subd. 1a(e)(1). The City of Albertville respectfully requests the Wright County Board to favorably recommend to the State of Minnesota the conveyance of this property to the City of Albertville for public use. 2. The Public Works Director is directed to notify Wright County in writing that the City of Albertville wishes to acquire that parcel of land assigned property identification number 101500011400 for purposes of preserving existing wetlands as a public purpose under Minn. Stat. § 282.01, Subd. 1a(e). The City of Albertville respectfully requests the Wright County Board to favorably recommend to the State of Minnesota the conveyance of this property to the City of Albertville for public use. 3. The Public Works Director is directed to notify Wright County in writing that the City of Albertville wishes to acquire that parcel of land assigned property identification number 101086000020 for continued use as a storm water holding Agenda Page 36 City of Albertville Meeting of December 7, 2015 Resolution No. 2015-045 Page 2 pond pursuant to Minn. Stat. § 282.01, Subd. 1a(e). The City of Albertville respectfully requests the Wright County Board to favorably recommend to the State of Minnesota the conveyance of this property to the City of Albertville for public use. Adopted by the Albertville City Council this 7th day of December, 2015. _____________________________ Jillian Hendrickson, Mayor Attest: ________________________ Kimberly A. Olson, City Clerk Agenda Page 37 Page 1 of 2 Couri & Ruppe, P.L.L.P. Memo To: Adam Nafstad, City Administrator; Albertville City Council From: Mike Couri Date: December 1, 2015 Re: Attorney Report Below is an update of the projects our office has been working on for the City. • I-94 Ramp Easement. The State is asking the City to obtain I-94 ramp easement from Albertville Marketplace using a revised legal description as the State wants clearer language in the deed from the City to the State for the ramp easement. The easement area remains unchanged—the State simply wants its specific language used in the easement document. The State is preparing the deed with the language it wants. Once we receive it we will work with the developer of Albertville Marketplace to get the deed signed. • Charter Cable. Charter Cable has replied to our request regarding the free cable service it is to provide to the City. Their contention is that the City is only entitled under Federal law to collect a maximum of 5% in franchise fees, which we are already collecting. Charter believes that provision of free cable service to municipal buildings over and above that 5% is prohibited under Federal law. I will check the law on this and see if Charter’s interpretation is correct. • Prairie Run. Fieldstone is scheduled to close on the 5th of the ten lots on the private road by December 4th. We are still waiting to hear from Fieldstone as to whether the 13th home has joined the Association. Agenda Page 38 Page 2 of 2 • Sign Ordinance. I have been working with Al Brixius on the changes to the City’s sign ordinance. • City Hall Cleaning Contract. I have been working with Adam on preparing a new City Hall cleaning contract. • Ice Arena. I have been working with Adam, the City’s bond counsel and the City’s financial advisor in putting together possible financing scenarios for the second sheet of ice. Agenda Page 39 Page 1 of 2 STMA Draft Project Development Schedule (STMA Arena 2nd Sheet Expansion Project) Rev. 12/1/15 Note: The schedule of tasks below is a tentative outline of events designed to meet the requirements of the Mighty Ducks Grant Program and deliver a second sheet within 2 – years or by the 2017/2018 season. The schedule is subject to change based on bond council and municipal financial advisor timelines, as well as, receiving the STMA-YHA pledge money. Task 1) Project Oversight (November, 2015) Identify/Assign the Joint Powers Arena Board as responsible for oversight of project development. Task 2) Appoint Design Committee (November, 2015) Design Committee will be tasked with researching facility needs, visiting various facilities, interviewing architects, developing a recommended concept, and reviewing cost estimates. The Design Committee will serve as an advisory committee to the Arena Board. Task 3) Approve Mighty Ducks Grant Agreement (December, 2015) Grant agreement will need to be approved by each entity, including Arena Board, by December 23. Task 4) Approve Joint Agreement for Expansion (Part 1) (Dec./Jan., 2016) The Joint Agreement – Part 1 will identify each entities commitment to fund the pre-construction elements of the project, including architecture, engineering, and bidding. Task 5) Engage Architect (January, 2016) The Design Committee will need to determine a selection process for an architect and provide Arena Board with a recommendation. Task 6) Complete Preliminary Design with Estimates (March, 2016) Design Committee and Architect are to develop a recommended concept plan with cost estimate for Arena Board approval. Agenda Page 40 Page 2 of 2 Task 7) Approval of Concept and Estimate (March/April, 2016) Each entity will be asked to provide approval or support for the preliminary design concept and associated project estimate. The Arena Board will also need to approve and direct the Architect to proceed with preparation of final plans. Task 8) Public Hearing and Call Bond Resolution Adopted (April, 2016) The process of issuing the municipal bonds will commence with the public hearing and adoption of abatement resolution prepared by bond council, followed by the financial advisor’s completion of the finance plan and official statement for the rating agency. Task 9) Approve Final Plans and Bid Project (June, 2016) Architect to complete final construction documents for Arena Board approval and authorization to advertise for bids. Project will be advertised for approximately 4 to 5 weeks prior to bid opening. Task 10) Approve Joint Agreement for Expansion (Part 2) (July, 2016) The Joint Agreement – Part 2 will identify each entities commitment to fund construction of the project. Task 11) Authorizing Resolution Adopted by City Council (July, 2016) Task 12) Closing on the Bonds and Award Construction (July, 2016) Task 13) Contracts and Construction Start (August, 2016) Task 14) Construction Completion/Grand Opening (September, 2017) Agenda Page 41 City Administrator’s Update December 3, 2015 GENERAL ADMINISTRATION Sign Code: A public hearing regarding the revisions is scheduled for the December 8 Planning Commission meeting and will proceed to Council if recommended by the Planning Commission. 2016 Fee Schedule: Staff is reviewing the City’s fee and rate schedule and will be presenting the draft schedule at the second meeting in December for approval. Federal Lobbying Services: Andy Burmeister will be at Monday’s meeting to discuss services and provide an update on the federal transportation reauthorization. Prairie Run Commercial Lot: Mark Miller, of Miller Construction, recently purchased the tax forfeit commercial lot in Prairie Run for a nominal fee. The City has approximately $192,000 of delinquent assessments on this property. These assessments are related to the Prairie Run development and CASH 19 improvements. Because the lot went tax forfeit, the City needs to re-attach the assessments to the parcel. Staff recently met with Mr. Miller and he will be at the assessment hearing. Mr. Miller intends on requesting that the assessment be removed/forgiven in full or at least reduced significantly, otherwise he claims he will let the property go tax forfeit again. STMA Ice Arena – 2nd Sheet: At the meeting staff would like to discuss the development schedule, design committee appointments, and next steps. Board and Commission Appointments for 2016: At the next meeting, Council will appoint committee members to the City’s various boards and advisory groups. Please let the Mayor or me know if you would like to see any committee changes in 2016. ENGINEERING/PUBLIC WORKS Lachman Avenue NE Rear Yard Drainage: Easement documents have been mailed to the five (5) affected properties and we are waiting for each property owner to sign the easement. UPCOMING EVENTS and ANNOUNCEMENTS Breakfast with the Troops: Friday, December 4, 7:00 a.m. – 12:00 p.m.at Caribou Coffee ATTACHMENTS (none) Agenda Page 42 Agenda Page 43