Major Challenges for 2014

Additional $607,375 for the Forest Lake City Center lease payment. The other half of the lease payment/debt service will be levied in the payable year 2015 budget. The impact of the increased levy will be mitigated by the expiration of a two TIF Districts that will add significant value back into the overall tax base.

Proposed levy increase of 12.4% increase compared to the the 2013 levy. Of this increase, 32% is attributable to General Fund activities and 68% is attributable to the lease payment/debt service associated with the Forest Lake City Center project.

Levy limits

Residential Example

Residential Example

Strategic Planning & Policy Considerations

Summary of Strategic Plan and Other Policy Items to Consider Item Summary Recommendation 1. Gateway Signs-

Four to six gateway signs welcoming visitors to Forest Lake are proposed to be established.

Strategic Plan Excerpt Goal: Create Strong and Cohesive Community Image and Identity Strategy #1: Develop Gateway Signage. Create signs welcoming residents and visitors to Forest Lake at key entrance points into the community. Financial Implications A sign with a masonry base would be approximately $20-$40,000 each depending on the size desired and the improvements needed to place and light the sign.

This is not reflected in the proposed budget. It is recommended to be deferred to a future year. An alternative would be to draw down the CIP Fund or reduce other areas of the budget to accommodate the expense.

Strategic Planning & Policy Considerations

Summary of Strategic Plan and Other Policy Items to Consider Item Summary Recommendation Public Works Facility Evaluation

Summary The Municipal Facilities Master Plan calls for Public Works to be consolidated in the future at the Forestland Nursery site. In the interim, they utilize the facility on 4th Street, South Building, Airport, and shortly the Fire Station. The next step would be to complete further space programming, a conceptual site plan, and develop an estimated budget. Financial Implications The work estimated above is projected to cost $10,000.

This is not reflected in the proposed budget. It is recommended to be deferred to a future year. An alternative would be to draw down the CIP Fund or reduce other areas of the budget to accommodate the expense.

Strategic Planning &

Policy ConsiderationsSummary of Strategic Plan and Other Policy Items to Consider

Item Summary Recommendation Public Works Staffing Analysis

Strategic Plan Excerpt Goal: Strategically Evaluate our Staffing Structure and Overall Approach to Service Delivery

Strategy #2: Conduct an Operational Assessment for the Public Works Department- Complete an assessment that evaluates staffing and equipment needs relative to service expectations and infrastructure maintenance.

Summary A survey was sent to communities that are 15,000 to 30,000 in population asking them to define their staffing levels and various operational characteristics of their city. A concerted effort was made to obtain data from as many cities as possible. While we did not get data from all the cities, we did get a fairly representative sample. Below is a summary of findings based on a review of the data we received: Our population density is lower than average

based on the survey responses we received. Our miles of streets maintained per FTE was 26

compared to an average of 18.6. We have a large number of cul de sacs,

approximately 200, compared to those responding to the survey. We are approximately twice the survey average.

The average time to complete all plow routes was 8-10 hours. Ours is approximately 12 if all staff are available. I would note that none of the cities surveyed have airport snow removal responsibilities and most do not have downtown snow removal responsibilities.

We had the highest population per total FTE's of all communities surveyed.

With a few notable exceptions, our utility data was closer to the averages. The most notable difference is the amount of lift stations that we maintain. Our lift stations per sewer FTE was 23 compared to an average of 8 for the other communities. We also have significantly more storm water ponds than others that responded to the survey.

Based on a review of the data that was collected and operational experience in Public Works, the following recommendations are presented for Council consideration: 1. Hire 1 Full Time Water

and Sewer Employee in 2014- This would allow for an additional employee to meet current sewer and water needs particularly in the area of sewer. In addition, this would add an additional employee into the snow removal rotation. This is estimated to cost $85,000.

2. Additional Funding for Seasonal Sidewalk Snow Removal and Park Maintenance in a future budget-Currently sidewalk and trail snow removal may not be done for some time after a snow event has occurred since it is done after regular routes, downtown snow removal, and the airport.

3. Hire an additional employee in the streets and parks area in 2015 or 2016- There is a need in the streets and parks area for additional staffing as well. Maintenance responsibilities and expectations are expected to increase.

Strategic Planning &

Policy ConsiderationsSummary of Strategic Plan and Other Policy Items to Consider

Item Summary Recommendation Fire Inspector Discussion

Summary There have been a variety of informal and formal discussions regarding our fire inspection program. Please note the following: In general, the purposes of a Fire Inspection program are

to minimize the potential for fires that would result in loss of life, damage to property, or damage to adjacent property; preserve the loss of businesses due to fire; and identify public safety hazards and hazardous materials usage. It is also a tool to assist in preplanning a fire response so the Fire Department is aware of any unique structural conditions or any hazards associated with the use of the building.

The Joint Fire Board had a discussion on this topic and expressed some reservations about the program. They will continue their discussion on this issue in September.

There has been some concern expressed by business owners who have recently been inspected about the cost of compliance and interpretations of the Fire Code. Since our program is relatively new, the first inspections of properties will be the most difficult. In addition, the area being inspected at the moment is in the industrial park off of 11th and 15th. The nature of the buildings and uses in this area are likely to provide opportunities for Fire Code education and potentially enforcement.

The desire for education as opposed to enforcement of the Fire Code has been mentioned at recent meetings. Overall, the goal is to educate customers about workplace safety, the Fire Code, and identify a path to compliance. With that being said, the Fire Code does not provide for a significant amount of discretion on the part of the inspector. For those unwilling to comply then enforcement actions need to be taken.

Ultimately, if a Fire Inspector is on staff there will be times when a path to compliance will need to be developed.

Our current Fire Inspector/Firefighter is a daytime available firefighter as well. The challenges associated with daytime fire response will be presented at a future meeting.

Financial Implications Financial implications are dependent on your preferred approach to inspections. The current cost of the program with one FTE is $95,000.

This program is discussed annually. If there is a concern that it is placing an undue hardship on property owners, and a belief that safety preplanning for firefighters is not needed or could take place in a different way, I would suggest eliminating the program. If you would like to have a program that accomplishes the purposes outlined in the summary I would suggest maintaining the program.

Finance Committee Recommendations

Establish a separate Sewer and Water Fund.

Proceed with the purchase of Gateway Signs using Capital Improvement Fund resources.

Delay completing the Public Works Facility Concept plan until consensus exists to move forward on the project.

Strategic Planning &

Policy Considerations

Strategic Planning &

Policy Considerations

Strategic Planning &

Policy Considerations

Park Board Recommendations

Park Board Recommendations

Park Board Recommendations

Park Board Recommendations

National Parks and

Recreation Association

Park Investment Benchmarks

National Average Spending for Parks and Recreation = $76 Per Capita

City of Forest Lake Average Spending for Parks and Recreation = $16.96 Per Capita

Council Budget Review

– Budget Workshop, August 8th at 6:30 pm- Complete

– Finance Committee Review, August 13th at 11:00 am- Complete

– Budget Workshop, August 22nd, 2013 at 6:30 pm (Public Input Session)

– Budget Workshop, August 29th, 2013 at 6:30 pm- Optional

Discussion Questions

1. Provide direction on the four remaining strategic planning/policy items.

2. Is the Council comfortable with the Finance Committee recommendations?

3. Is the Council comfortable approving the preliminary budget and certifying the preliminary levy, or would you like to have an additional budget workshop on August 29th, 2013?

4. Is the Council comfortable with the Capital Improvement Plan?

Prepared by:The Department of Administration and Finance

Aaron Parrish, City Administrator

Ellen Paulseth, Finance Director