120412completeagendaTNT CITY OF RICHFIELD, MINNESOTA
SPECIAL CITY COUNCIL MEETING
TUESDAY, DECEMBER 4, 2012
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Truth in Taxation public hearing regarding 2013 property tax levy and 2012
revised/2013 proposed budget and proposed 2013 water, wastewater and storm
sewer utility rates
Staff Report No. 207
Notes:
2. Public hearing regarding reinitiation of street light user fee
Staff Report No. 208
Notes:
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
AGENDA ITEM#: I
REPORT#: 207
STAFF REPORT
RICHFIELD CITY COUNCIL MEETING
DECEMBER 4, 2012
REPORT PREPARED BY: CHRIS REGIS,FINANCE MANAGER
NAME,TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
f /
MANAGER: ffirpir
ITEM FOR COUNCIL CONSIDERATION:
Conduct a truth in taxation public hearing regarding the 2013 property tax levy and 2012
Revised/2013 Proposed budget and proposed 2013 water, wastewater, and storm sewer utility
rates.
I. RECOMMENDED ACTION:
Conduct and close the truth in taxation public hearing and by motion:
schedule final action on the levy and budget items, utility rates, for
the regular City Council meeting of December 11, 2012
II. BACKGROUND
• At the September 11, 2012 City Council meeting the City Council adopted the
2013 preliminary property tax levy and announced December 4, 2012 at 7:00
p.m. as the date and time for the statutory truth in taxation public hearing.
• Hennepin County has mailed the proposed 2013 property tax statements to
property owners in Richfield, which are based upon the proposed levy and
announce the date of the public hearing.
III. BASIS OF RECOMMENDATION
A. POLICY
• The requirement to hold a special TNT public hearing and continuation
hearing have been repealed.
12042012 TNT
• Counties, cities over 500 population, school districts, and metropolitan
special taxing districts are still required to hold a single meeting which
the public is allowed to speak and the budget and levy is discussed.
• This meeting may be part of a regularly scheduled meeting but must
occur after 6:00 p.m.
• Minnesota Statutes mandates that the truth in taxation public hearing
must be conducted between November 25 and December 28, 2012.
• The City has chosen to select a separate date, December 4, 2012 at
7:00 p.m., to conduct the TNT hearing.
• The requirement to publish a notice of a Truth in Taxation hearing and
proposed property tax levy is no longer required.
B. CRITICAL TIMING ISSUES
• Schedule the final adoption action for the 2012 Revised/2013 Budget
and tax levy and utility rates for December 11, 2012.
• The City must adopt their final payable 2013 property tax levies and
their proposed 2013 budgets not later than December 28, 2012.
C. FINANCIAL
• N/A
D. LEGAL
• The City has scheduled December 4, 2012 for the TNT hearing and
December 11, 2012 for the official adoption of the final levy and
budget.
• Final adoption of the payable 2013 property tax levies must be
completed by December 28, 2012.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATIONS)
• None with respect to conducting the public hearing, as it is mandated by
state law.
V. ATTACHMENTS
• None.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM#: 2
REPORT#: 208
mwal STAFF REPORT
RICHFIELD CITY COUNCIL MEETING
DECEMBER 4, 2012
CHRIS LINK,
REPORT PREPARED BY: OPERATIONS SUPERINTENDENT
NAME,TITLE
/
DEPARTMENT DIRECTOR
lEr
REVIEW: • `44 / 1
REVIEWED BY CITY
frilir
MANAGER: p.! F
ITEM FOR COUNCIL CONSIDERATION:
Public hearing regarding the reinitiation of a Street Light User Fee.
I. RECOMMENDED ACTION:
By Motion: Conduct and close the public hearing regarding the
reinitiation of a Street Light User Fee.
II. BACKGROUND
On September 22, 2009, the City Council established a Street Light User Fee to pay
for the electric costs of operating the City's street lights. The resolution (Resolution
No. 10292) establishing the fee included the following provisions:
1., The rates for the Street Light User Fee will be reviewed and established
annually as part of the City's budget preparation process.
2. The collection of the Street Light User Fee will "sunset" in three years,
December 31, 2012, unless council action is taken to reinitiate the fee.
The use of a Street Light User Fee is part of a strategy to remove the funding of
essential services like street lights from dependence on the State's Local
Government Aid. Local Government Aid has proven to be undependable revenue.
Yearly Revenue
Currently the Street Light User Fee generates $269,154 a year in revenue. This
amount is used to pay for Xcel Energy charges for the street lighting system which
is shown in Budget Line Item 10610-6207. Below is a history of charges:
Year Xcel Charges
2009 $276,595
2010 $265,947
2011 $298,414
2012 $299,320
(Revised)
2013 $299,320
(Proposed)
*Please note the amount proposed for 2013 may be inaccurate. Recently Xcel
Energy has been proposing a 10% increase in charges for 2013.
Proposed Rates
The current residential rate is $5.19/quarter which has remained unchanged since
2009. Below are proposed rates and how much they revenue they would generate.
Proposed Revenue(s) Percent
Rate Generated Increase
$5.19 $269,154 0%
$5.30 $274,858 2.1%
$5.77 $299,320 11.2%
Attached is a draft resolution reinitiating the Street Light User Fee to be considered
at the December 11, 2012 Council Meeting. Staff is recommending a rate of$5.30.
This change will also be part of the Proposed 2013 Budget.
III. BASIS OF RECOMMENDATION
A. POLICY
• Minnesota State Statues, Section 429.101: the governing body of a
municipality may charge for certain current services provided by the
municipality including the operation of a street lighting system. City
Ordinance Section 825 is consistent with state statute.
B. CRITICAL TIMING ISSUES
• Cuts in State Aid have forced cities to pursue alternative funding
sources to maintain current services.
C. FINANCIAL
• The present revenue generated from the existing user fee of
$5.19/quarter is approximately $269,154.
• The fee is being collected on the Utility bill as a separate line item.
D. LEGAL
• The City Attorney has reviewed this process.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATIONS)
• None with respect to conducting the public hearing, as it is mandated by
state law.
V. ATTACHMENTS
• Draft Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None Expected
DRAFT
RESOLUTION NO.
RESOLUTION ESTABLISHING A STREET LIGHT USER FEE TO BE CHARGED TO
RESIDENTIAL AND COMMERCIAL PROPERTY IN THE CITY OF RICHFIELD FOR THE
OPERATION OF A STREET LIGHTING SYSTEM.
WHEREAS, the City of Richfield community values the operation of a street lighting
system; and
WHEREAS, every property in the City, residential and commercial, benefits from
good streets which are well lighted and maintained through a city street light system; and
WHEREAS, pursuant to Minnesota State Statues, Section 429.101 and Richfield
City Code, Section 825, the governing body of a municipality may charge for certain
current services provided by the municipality including the operation of a street lighting
system.
NOW, THEREFOR,E BE IT RESOLVED by the City Council of the City of
Richfield, Minnesota as follows:
1. Every property in the City of Richfield, residential and commercial, benefits
from streets which are well lighted and maintained.
2. The initial Street Light User Fee for residential single family property is $5.30
per quarter for residential property. Rates for other land uses will be
determined by the attached street Light User Fee Rate Factors Sheet.
3. The rates for the Street Light User Fee will be reviewed and established
annually as part of the City's budget preparation process.
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of
December, 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Street Light User Fee
RATE FACTORS SHEET
Fees are based on Land Use
Land Use Titles:
COM -All commercial properties, to include multifamily residents (apartments) and
industrial parcels.
RES -All residentially coded parcels.
PUB -Public buildings, i.e. City Hall, City Garage, and Fire Stations
CHURCH -All Churches also to include cemeteries and activity buildings associated
• with a Church
SCH -All schools, to include private and public schools.
PRK -All parks owned by the City of Richfield, also to include Nature Centers and all
"properties" located within city park parcels
DPLX -Addresses that split a residential lot, to include townhomes, 3-plexs, and 4-plexs.
LAND USE CODE MULTIPLIER To Bill FACTOR
COM (acres>0.2) 5* (5 x ACREAGE)
if acres50.2 ---- 1
RES ---- 1
PUB (acres>0.2) 5 (5 x ACREAGE)
if acres 550.2 ---- 1
CHURCH•(acres>0.2) 1.25** (1.25 x ACREAGE)
if acres 50.8 ---- 1
if acres 50.2 ---- 1
SCH (acres>0.2) 1.25 (1.25 x ACREAGE)
if acres 50.8 ---- 1
if acres 50.2 ---- 1
PRK 1.25 (1.25 x ACREAGE)
DPLX ---- 0.5
* The multiplier of"5" is based on the definition that a residential lot is 1/5 of an acre,
hence multiplying acreage by 5 produces the equivalent number of residential lots.
** The multiplier of"1.25" " is based on the definition that a residential lot is 1/5 of an acre
and multiplying acreage by 5 produces the equivalent number of residential lots. However,
the total area of each parcel is not proportional to the number of street lights in an
equivalent residential area so the factor of 5 is reduced by 75%, producing 1.25.