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CHA 01/03/2017 TO: Charter Commission Members FROM: Deb Skogen, City Clerk and Staff Liaison Date: December 22, 2016 Re: Charter Commission Meeting of TUESDAY, January 3, 2017 This is a reminder to you that the next Charter Commission meeting will be held next rd TUESDAY, January 3 at 7:00 p.m. in Conference Room A on the Upper Level. In order to ensure a quorum, please remember, the Charter Commission bylaws require a rd member to call or e-mail staff before 10:00 a.m. Tuesday, January 3, to notify us whether or not you plan on attending the meeting. You may call me at (763)572-3523 or Jake at (763)572-3508 or email deb.skogen@fridleymn.gov or jake.foster@fridleymn.gov whether or not you will be attending the meeting. an e-mail will be sent out by Noon TUESDAY If there will not be a quorum, notifying everyone there will not be a quorum and the meeting will be cancelled. A notice will then be placed at the door of City Hall announcing the cancellation of the meeting for those commissioners who did not call, but came to the meeting. Please let me know if you need any additional information prior to the meeting. CITY OF FRIDLEY CHARTER COMMISSION AGENDA TUESDAY, JANUARY 3, 2017 7:00 P.M. LOCATION: FRIDLEY MUNICIPAL CENTER CONFERENCE ROOM A UPPER LEVEL 1.CALL TO ORDER: 2.ROLL CALL: 3. APPROVAL OF AGENDA: Motion approving the January 3, 2017 meeting agenda 4. APPROVAL OF MINUTES Motion approving the October 3, 2016 meeting minutes 5. ADMINISTRATIVE MATTERS A. 2017 Calendar/Membership Information B. Vacancies Resignation of Novella Olawore Application of Bruce Nelson 6. OLD BUSINESS A. Discussion of Chapter 2 7. NEW BUSINESS A. Discussion of Chapter 7 8. FUTURE MEETING TOPICS/COMMUNICATIONS A. Discussion of Chapter 10 (Tabled until after current franchise negotiations completed) 9. ADJOURNMENT Motion to adjourn the meeting Next Regular Commission Meeting Date: February 6, 2017 CITY OF FRIDLEY CHARTER COMMISSION MEETING OCTOBER 3, 2016 CALL TO ORDER: Chairperson Reynolds called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL: Members Present: Commissioners Gary Braam, Zach Crandall, Don Findell, Manuel Granroos, Ted Kranz, Rick Nelson, David Ostwald, Barb Reiland, Pam Reynolds, Avonna Stark Members Absent: Lois Scholzen, Cindy Soule, and Richard Walch Others Present: Deb Skogen, City Clerk/Staff Liaison Wally Wysopal, City Manager Bob Barnette, Councilmember at Large APPROVAL OF AGENDA Ms. Skogen suggested adding a vacancy discussion to agenda item number 5 under the letter B to the agenda. Commissioner Reiland MOVED and Commissioner Ostwald seconded a motion to approve the meeting agenda as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES Ms. Skogen said the packet was added to the web, but no changes had been made. Chairperson Reynolds stated letter A in the old business section. She also asked whether or not it was known what the change was that Commissioner Findell referenced at the top of page four while discussing Section 2.06. language. Chairperson Reynolds recommended the following other minor changes. th Page 4, 4 paragraph, last line, change the word changedchange; st Page 6, 1 sentence, at the word at between the words being their meetings; th Page 6, last paragraph, 5 sentence, change to read as follows: ..limitation came from. Mr. Wysopal wanted to CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 2 ndth Page 7, 2paragraph,4sentence, change the word wouldto were; ndth Page 8, 2 paragraph, 4 sentence, change the word believe to believed; thrd Page 8, 4 paragraph, 3 sentence, remove the words be to; and thst Page 8, 6 paragraph, 1 sentence, change the word individual to individually. Commissioner Crandall MOVED and Commissioner Reiland seconded a motion approving the Charter Commission meeting minutes of September 6, 2016 as amended. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. ADMINISTRATIVE MATTERS A.2017 Calendar Chairperson Reynolds went through the proposed calendar and determined which dates would work for 2017 Charter Commission meetings. After some discussion the Commissioners decided to meet on the following dates: January 3, February 6, March 6, April 3, May 1, September 5, October 2 and November 6 Chairperson Reynolds asked if there were any other concerns, or if the number of meetings should be reduced. Commissioners Reiland and Granroos thought it made sense to keep the number of meetings the same. Commissioner Findell MOVED and Commissioner Granroos seconded a motion approving the proposed 2017 Calendar meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED. B.Vacancy Ms. Skogen presented a letter of resignation from Marion Flickinger. His resignation creates a vacancy that can be addressed at the January meeting. She will advertise the opening on the city website/government cable channel. OLD BUSINESS A.Discussion of Chapter 2 Chairperson Reynolds thought the chapter looked good up to the language in Section 2.07 regarding vacancies. Commissioner Findell asked if the Councilmembers elections were staggered and not elected in the same years. Ms. Skogen confirmed that 2 members would be elected this CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 3 general election (mayor and councilmember at-large), and the three ward members would be elected during the next general election in 2018. Commissioner Crandall confirmed these positions are, in fact, staggered in their election. Chairperson Reynolds asked if any Commissioners had anything else to add regarding section 2.07. Seeing none, Chairperson Reynolds moved on Chairperson Reynolds had emailed Ms. Skogen asking for information on the current benefits offered to elected officials. Ms. Skogen provided information from Human Resources Director, Deb Dahl, outlining this information. Chairperson Reynolds requested clarification about reasonable remuneration of salary, and asked why the charter says nothing about benefits. Commissioner Findell thought remuneration was addressed in the language that says the council can establish salaries by ordinance. Commissioners Reiland, Crandall, and Chairperson Reynolds reiterated that they should decide on whether or not language directly addressing benefits should be added to section 2.08. Chairperson Reynolds felt compensation should be completely transparent to citizens, so they are aware of the entire compensation package councilmembers receive. Commissioner Crandall said the language in the charter describes how wages should be addressed. Ms. Skogen clarified the confusion by saying compensation would be addressed during the budgeting process before the stated November st 1 deadline. If compensation did not change, the prior ordinance would continue to remain in effect. Further discussion took place regarding what the word remuneration entailed and what change would require a new ordinance. Chairperson Reynolds said the language in the ordinance stated elected officials should receive the same benefits as employees. However, because they do not receive annual leave or vacation time, they do not, in fact, receive the same benefits package as employees. Ms. Skogen stated they are not considered full-time employees so these packages would differ. Chairperson Reynolds said this should be considered for a language change to make these differences more clear. Chairperson Reynolds asked if the language regarding the city council approving employee compensation of city employees should be its own section or moved to a different section of the Charter (perhaps one that is closer related to budgeting). The Commissioners discussed whether or not this section should be moved, and how the budgetary process takes place, how the City Manager prepares the budget, and how the city council approves the budget. CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 4 After further discussion, it was determined the last sentence in section 2.08 referring to the city council setting/approving the salaries of city employees could be removed from that section as it does not relate to the compensation of elected officials. Ms. Skogen offered to do more research regarding the salaries of elected officials and city staff. Commissioner Reiland added it could be discussed more at the January meeting. Chairperson Reynolds again stated that elected officials are entitled to the same benefits as employees, but they are not full time employees and are not entitled to all of the benefits of full time employees such as annual leave and vacation time. Further discussion took place regarding this issue, if any further clarification needed to be made in the language, and potential risks for unequal compensation due to elected officials choosing the cash option or full health coverage. Commissioner Ostwald asked what the specific concern was regarding providing benefits to elected officials. Chairperson Reynolds responded saying it creates a conflict-of-interest in that councilmembers will be motivated to do whatever the city staff would like them to do to keep receiving the benefits. She also added that it was her belief that the tax payers do not fully understand the cost of the benefits packages being given to elected officials. Commissioner Crandall added these items may be hidden in a budget, and they could provide a specific number within the ordinance. Commissioner Stark stated it was not necessarily hidden in the budget, but could be made more clear and/or transparent. Further discussion took place to clarify meant. Mr. Wysopal added the language regarding expenses could certainly be made more transparent. He also said he personally has not had to process payment or reimbursement for such expenses, and that elected officials have taken it upon themselves to pay for these expenses. Chairperson Reynolds suggested Commissioners think on these items that have been discussed, and bring any added insight for further discussion during the January meeting. Ms. Skogen said she could draft language that would reflect their discussion ideas for the Commissioners to review during the next meeting in January. Commissioner Crandall suggested the language could be added in the Charter (or have it required in the ordinance) so compensation expenses for elected officials could be made clearer and more transparent. Further discussion took place regarding this notion. Ms. Skogen said if anyone was to request any of this information, she would be able to provide it by including the budget for that year, and the current ordinance. She added that the budget is provided online. CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 5 Commissioner Crandall suggested the total compensation packages for the elected officials could be posted online much like the three highest paid employees to increase the transparency of these expenses. Commissioner Stark asked how this could be displayed. Commissioner Crandall said it could be displayed in summary on the homepage. Ms. Skogen raised concerns that some of this information may be regarded as private information, and specifics of these compensation packages might not be able to be disclosed. Commissioner Stark brought up concerns about how much time, money, and effort it would take to continually update these numbers and disclosures. Further discussion took place regarding these items. Commissioner Crandall suggested the total of these costs could be provided in summary to protect the personal information of certain individuals. As prompted by Commissioner Stark and Chairperson Reynolds discussion took place regarding what other cities and the state do regarding this matter. Chairperson Reynolds suggested more thought and discussion could be put into the idea of further disclosing the cost of the compensation packages elected officials. Commissioner Reiland felt the Commissioners should concern themselves with was what impact this concept has in the Charter, and not the other manifestations of these disclosures. Citing the time, Chairperson Reynolds suggested the discussion on Chapter 2 should continue during the next meeting. Commissioner Reiland thought that the discussion of Chapter 2 would take most, if not all, of the meeting time and it would be difficult to get to their discussion of Chapter 7. NEW BUSINESS A.Discussion Pertaining to Chapter 7 Ms. Skogen said the questionnaire on Chapter 7 had gone out to obtain comments from the Commissioner and Councilmembers. Commissioner Findell suggested adding one question to the questionnaire. Mr. Wysopal said Mr. Foster was reviewing all of the input regarding the Chapter 7 questionnaire, and it would be sent out in its final form in the coming weeks. Once the surveys come back responses will be reviewed and tabulated in order to determine the next steps of the discussion, and whether any additional clarification needed to be made on behalf of the city staff, city council, or Charter Commission Members. Mr. Wysopal also asked the Commissioners how they would like to move forward in their discussion of Chapter 7. He was hoping to analyze the Chapter using metrics and figures CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 6 found to be desirable and useful for Commissioners and Council. They should be unbiased and objective. Chairperson Reynolds asked if they wanted to leave the discussion of Chapter 7 as an ongoing topic, and Commissioner Reiland agreed. Commissioner Reiland also wanted to know which specific section Mr. Wysopal had his largest concerns with. Mr. Wysopal asked if he could provide his response in writing, and asked if this is the direction they would like to take regarding Chapter 7. The Commissioners agreed that would be the best approach. Commissioner Ostwald added that he would like to have more information regarding the history of the levy restriction, the current state, and how the levy restriction in Chapter 7 has impacted the city over time. Commissioner Crandall said it was difficult to answer the questions on the questionnaire without having the information asked for by Commissioner Ostwald. He added that he understands the rationale behind the measure was to keep taxes in check, but he would need further information regarding its overall effectiveness and any potential drawbacks. Commissioner Findell added that it would be good to have the historical wording of Chapter 7 before the restriction was put into place. He also added that he knows that this restriction has been reworded, and would like to know how these changes have been made. After some discussion regarding the historical context and changes of this language, Ms. Skogen said she would be able to provide that information. B.Discussion of Progress in CenturyLink Franchise Negotiation. Moving on to the CenturyLink franchise discussion, Ms. Skogen said they were still waiting for responses from CenturyLink regarding a few items. Chairperson Reynolds said that this item could remain tabled. Mr. Wysopal said these negotiations could be especially troubling as new franchisees no longer have to provide service to the whole city, and this is creating some issues. Chairperson Reynolds asked if anyone had any future meeting topics, and Ms. Skogen responded saying they will need address the vacancy of the departing Charter Commission Member, Marion Flickinger. FUTURE TOPCIS Discussion of Vacancy created by departing Commissioner, Marion Flickinger. Old Business Discussion of Chapter 2 New Business Discussion of questionnaire/Chapter 7, CHARTER COMMISSION MEETING OF OCTOBER 3, 2016 PAGE 7 ADJOURNMENT: Commissioner Findell MOVED and Commissioner Reiland seconded a motion to adjourn the meeting. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON REYNOLDS DECLARED THE MOTION CARRIED AND THE MEETING WAS ADJOURNED AT 8:30 P.M. Respectfully submitted, Debra A. Skogen, MMC City Clerk/Staff Liaison Commissioner Donald Findell Secretary S 2 9 16 23 30 S 7 14 21 28 S 4 11 18 25 S 2 9 16 23 30 2017 FFFF 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29 TTTT 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 6 13 20 27 4 11 18 25 1 8 15 22 29 6 13 20 27 WWWW EMBER NOVEMBER DECEMBER TTTT 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 OCTOBER 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 MMMM SEPT SSSS 3 10 17 24 1 8 15 22 29 5 12 19 26 3 10 17 24 31 S 6 13 20 27 S 3 10 17 24 S 1 8 15 22 29 S 5 12 19 26 FFFF 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 TTTT 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 WWWW TTTT 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 9 2 T AUGUS 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 MM MM JUNE MAY JULY SSSS 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 S 7 14 21 28 S 4 11 18 25 S 4 11 18 25 S 1 8 15 22 29 FFFF 3 10 17 24 3 10 17 24 31 7 14 21 28 6 13 20 27 TTT T 5 12 19 26 2 9 16 23 2 9 16 23 30 6 13 20 27 1 8 15 22 1 8 15 22 29 5 12 19 26 4 11 18 25 WWWW TTTT 3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25 FEBRUARY JANUARY MARCH 2 9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 M APRIL MMM S SSS 1 8 15 22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 FRIDLEY CHARTER COMMISSION meeting date To ensure a quorum, please notify No meetings will be held in June, skogen@fridleymn.gov July, August and December 6431 University Avenue NE called by the Chair Charter Commission Fridley Municipal Center s Held at 7:00 pm Deb Skogen, City Clerk e Room A Meeting Dates 3523 the - 572 on Conferenc - Deb by 10 am 763 Meeting nless 7 eb. 201 U D 2016 Charter Commission Membership Name/AddressPhonee-mail addressAppointedTerm Expires Braam, Gary (h) 763-571-9582 gbraam@msn.com 06-01-04 (1) 05-31-2008 1436 66 th Avenue (w) 763-528-1214 02-05-08 (2) 05-31-2012 55432 02-13-12 05-31-2016 05-27-16 05-31-2020 Crandall, Zach (h) 612-240-0427 zcrandall@hotmail.com 05-27-16 06-01-2020 th 6200 6 Street NE (w) 612-849-8318 55432 Findell, Donald (h) 763-571-0467 donfinder@aol.com 6-16-97 (1) 05-11-2001 6850 Siverts Lane 2-21-01 (2) 05-01-2005 55432 5-4-05 (3) 05-01-2009 2-4-09 05-01-2013 05-24-13 05-01-2017 Manuel Granroos (h) 763-571-0811 mannyjg2389@gmail.com 10-21-14 09-02-2018 1114 63 rd Ave NE (c) 612-710-0332 Fridley, MN 55432 Ted Kranz (h) 763-571-4387 Tkranz1@comcast.net 8-11-06 (1) 04-22-2010 6701 Monroe Street NE 03-29-10(2) 04-22-2014 55432 10-21-14 04-22-2018 Rick Nelson (c) 612-963-2487 rickvan16@hotmail.com 05-12-11 02-13-2012 4624 2 ½ Street NE 02-13-12 02-21-2016 55421 05-27-16 02-21-2020 David Ostwald 763-572-3865 10-21-14 02-21-2017 dostwald@tonkawa.com 6675 East River Road (c) 763-234-2950 Fridley, MN 55432 Barb Reiland 763-571-0801 barb642@mac.com 02-13-12 02-21-2013 5623 W Bavarian Pass 05-21-13 02-21-2017 55432 Reynolds, Pam (c) 763-222-9386 fnpam@hotmail.com 5-12-05 (v) 05-01-2007 1241 Norton Ave NE 3-22-07 05-01-2011 55432 04-04-2011 05-01-2015 05-04-2015 05-01-2019 Scholzen, Lois (h) 763-571-1276 scholzenmn@aol.com 3-22-07 (v) 05-01-2009 113 Hartman Circle 02-04-09 05-01-2013 55432 05-24-13 05-01-2017 Soule, Cynthia (h) 763-572-9666 csoule@primetherapeutics.com 6-16-97 (1) 05-11-2001 7838 Firwood Way (c) 612-414-5319 2-21-01 (2) 05-01-2005 55432 5-4-05 (3) 05-01-2009 2-4-09 05-01-2013 05-24-13 05-01-2017 Stark, Avonna (h) 612-423-6939 Avonna.caroline@gmail.com 05/22/15 (1) 05/04/2019 305 Longfellow St NE (w) 651-296-3205 55432 Richard Walch (h) 763-213-9659 rbwalch@yahoo.com 09-09-2013 09-09-2017 6859 7 th Street NE (w) 612-671-7757 55432 Open Positions: (Flickinger) 04-22-2018 (Ollawore) 19-19-2017 12/5/2016 From:Novella Olawore To:Skogen, Deb Subject:Re: Quorum Reached Date:Friday, October 14, 2016 12:07:26 PM Good Afternoon, Thanks! My new address is 2620 9th lane #214, Anoka MN 55303 On Tuesday, October 11, 2016 4:08 PM, "Skogen, Deb" <Deb.Skogen@fridleymn.gov> wrote: Novella, I am sorry to hear you have to move and wish you all the best. Thank you for serving as a Commissioner these past several years,. If you have a forwarding address, I would like to send a certificate showing you our appreciation. Deb Deb Skogen, City Clerk 763-572-3523 FAX 763-502-4981 From: Novella Olawore \[mailto:nolawore@yahoo.com\] Sent: Tuesday, October 11, 2016 3:13 PM To: Skogen, Deb <Deb.Skogen@fridleymn.gov> Subject: Re: Quorum Reached Good Afternoon, I apologize for the short notice, however my life has recently took a turn and I have experienced a great amount of change that unfortunately requires me to move out of the city of Fridley and therefore must resign from the Charter Commission effect immediately. I have so much enjoyed the experience and meeting everyone. Thanks and Have a Great Day! On Monday, October 3, 2016 2:06 PM, "Skogen, Deb" <Deb.Skogen@fridleymn.gov> wrote: Just wanted to let you know that seven individuals have responded as a yes to the meeting this evening. See you at 7 pm. If we do not have 7 individuals by 7:10 pm, the meeting will be cancelled. Debra A. Skogen, MMC/MMMC City Clerk City of Fridley 6431 University Avenue NE Fridley, MN 55432 763-572-3523 FAX 763-502-4981 Deb.skogen@fridleymn.gov ORDINANCE No.____ AN ORDINANCE AMENDING FRIDLEY CITY CHARTER CHAPTER 2. CITY COUNCIL ORGANIZATION WHEREAS, the City Council of the city of Fridley hereby finds, after review, examination and recommendation by the Fridley Charter Commission and staff, that the Fridley City Charter be hereby amended as follows: FRIDLEY CITY CHARTER CHAPTER 2. CITY COUNCIL ORGANIZATION SECTION 1: That Section 2.02 of the City Charter be amended as follows: Section 2.02. ELECTIVE OFFICERS. 1. The Council shall be composed of a Mayor and four (4) Councilmembers who shall be eligible voters as defined by Section 1.04.1 of this Charter. (Ref. Ord. 1252) The Mayor shall be elected at large in each United States presidential election year to a 2. term of four (4) years. (Ref. Ord. 1034. 3.One (1) Councilmember shall be elected at large in each United States presidential election year to a term of four (4) years. (Ref. Ord. 1034) 4.Three (3) Councilmembers shall be elected in each Minnesota gubernatorial election year from three (3) separate Wards of the City to terms of four (4) years each. (Ref. Ord. 1034) 5. The first order of business at the first official Council meeting in each January that follows an election year shall be the swearing in of the newly elected members of the Council. 56. The term of Mayor and of each Councilmember shall begin after being sworn in following their election. Their term shall end upon the newly qualified elected official(s) being sworn in. on the first day of January following their election to office and shall end on December 31 of the last year of the term. The incumbent may shall remain in office until a successor has been duly qualified and accepts the office. The first order of business at the first official Council meeting in each January that follows an election year shall be the swearing in of the newly elected members of the Council. (Ref. Ord. 1034) 6 7. The Council shall serve as the canvassing board for city elections. (Ref. Ord. 1252) Ordinance No. ____ Page 1 SECTION 2: That Section 2.03 of the City Charter be amended as follows: Section 2.03. THE MAYOR. 1. The Mayor shall be the presiding officer of the Council, except that a mayor pro tem shall be chosen from the remaining Councilmembers to serve at the pleasure of the Council the councilmember at large who shall act as Mayor in case of the Mayor's temporary disability or absence from the City. Should neither be available, the mayor pro tem shall be chosen from the remaining Councilmembers to serve at the pleasure of the Council. 2. The Mayor shall vote as a member of the Council. (Ref. Ord. 1034) 3. The Mayor shall exercise all powers and perform all duties conferred and imposed by this Charter, the ordinances of the City and the laws of the State. (Ref. Ord. 1034) 4. The Mayor shall be recognized as the official head of the City for all ceremonial purposes, by the courts for the purpose of serving civil process, and by the Governor for the purposes of martial law. (Ref. Ord. 1034) 5. At the direction of the Council the Mayor shall study the operations of the City government and shall report to the Council any neglect, dereliction of duty, or waste on the part of any officer or department of the City. (Ref. Ord. 1034) 6. In time of public danger or emergency the Mayor may take command of the police, maintain order and enforce the law. Council consent shall be obtained when practicable. (Ref. Ord. 1034) SECTION 3: That Section 2.04 of the Fridley City Charter be hereby amended as follows: Section 2.04. THE COUNCILMEMBER AT LARGE 1.The Councilmember at Large shall serve as the mayor pro tem in the temporary absence of the Mayor. 2.arge shall serve as the Mayor as required in Section 2.07.3. Section 2.0405. WARD COUNCILMEMBERS. 1.The City is divided into three (3) separate election Wards designated as Ward 1, Ward 2, and Ward 3. (Ref. Ord. 1034) Ordinance No. ____ Page 1 2. A Ward Councilmember must be a resident of such ward. If the Ward Councilmember ceases to be a resident of the ward, then that office shall be declared vacant. However, a change in ward boundaries during the term of office shall not disqualify the Councilmember from completing the term. (Ref. Ord. 1034) 3. The boundaries of the three (3) wards shall be redetermined redistricted from time to time by ordinances duly adopted by the Council, and based on the findings of the Council that the wards so redetermined redistricted are such that the population of any ward shall not deviate by more than three percent (3%) from the average of the three (3) wards. (Ref. Ord. 1034) 4. After each decennial census of the United States, the Council shall redetermine redistrict ward boundaries when appropriate. This redetermination redistricting of ward boundaries shall be accomplished within the deadlines established by Minnesota law. If no deadlines are established by law, then redistricting must be completed no less than one hundred (100) days prior to the legally determined date of the municipal primary of the year ending in the digit two (2). If further redistricting is necessary, as determined by the Council, the adoption of the new boundaries shall be prohibited during the time period from ninety (90) days before a primary election up to and including the day of the general election in the same year. Any prohibitions stated in the Minnesota state statutes pertaining to the adoption of the new boundaries shall also apply. (Ref. Ord. 1034) SECTION 5. That Section 2.05 of the City Charter be amended as follows: Section 2.0506. DISQUALIFICATION FOR APPOINTIVE OFFICE. No incumbent member of the Council shall be appointed acting or permanent City Manager, nor shall any member hold any other paid municipal office or employment under the City; and no former member shall be appointed to any paid office or employment under the City until one (1) year after leaving office. (Ref. Ord. 1034) SECTION 6. That Section 2.06 of the City Charter be amended as follows: Section 2.06 07. VACANCIES IN THE COUNCIL. 1.A vacancy in the council shall be deemed to exist: in case of the failure of any elected person elected thereto to qualify on or before the date of the second regular meeting of the new council; by reason of the death; resignation or removal from office; continuous absence from the City for more than three (3) months; failure to attend any council meetings for three (3) consecutive months; Ordinance No. ____ Page 1 conviction of a felony of any such person whether before or after their qualification; or by ceasing to be a resident of the city or the ward from which elected. In each such case, within thirty (30) days the council shall by resolution declare a vacancy to exist. (Ref. Ord. 1289) SECTION 7. That Section 2.07 of the City Charter be amended as follows: Section 2.0708. SALARIES AND EXPENSES. 1.The Mayor and each Councilmember shall receive reasonable remuneration or salary, the annual amount and payment of which shall be prescribed by ordinance duly adopted on or before November 1st of the year preceding payment of the same. When authorized by the Council, its members shall be remunerated for their reasonable expenses incurred in connection with the City's business. 2.The City Manager and all subordinate officers and employees of the City shall receive such reasonable compensation as may be fixed by the Council. (Ref. Ord. 1034) PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS ___ DAY OF ___________, 20__. _______________________________ Scott J. Lund, Mayor ATTEST: ___________________________________ Debra A. Skogen, City Clerk Public Hearing: First Reading: Second Reading: Publication: FRIDLEY CITY CHARTER CHAPTER 7. TAXATION AND FINANCES. Section 7.01. COUNCIL TO CONTROL FINANCES. The Council shall have full authority over the financial affairs of the City, and shall provide for the collection of all revenues and other assets, the auditing and settlement of accounts, and the safekeeping and disbursement of public moneys. In the exercise of a sound discretion it shall make provisions for the payment of all liabilities and expenses. The Council shall establish the fiscal year for the City. Section 7.02. POWER OF TAXATION. 1.The City shall have, in addition to the powers by this Charter expressly or impliedly granted, all the powers to raise money by taxation pursuant to the laws of the State which are applicable to cities of the class of which it may be a member from time to time, provided that the amount of taxes levied against real and personal property within the City for general City purposes shall not exceed in dollars, a tax levy that is greater than the prior year tax levy increased by an inflationary index, or 5%, whichever is less. Said inflationary index shall be that as defined by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all Urban Consumers in the Minneapolis, St. Paul metropolitan area. (Ref. Ord. 592, 1102 and 11/7/00 Amendment) Nothing in this provision shall be construed to impair any general obligation the City may have in support of otherwise lawful indebtedness or similar obligation supported by the full faith and credit of the City, provided, however, that long-term, general obligation indebtedness shall not be used for the purpose of funding the routine and daily business operations of the City. (Ref Ord 1152) 2. The City Council may also levy a tax against real and personal property within the City in addition to said limit as defined in paragraph 1 provided the Council shall: A. Adopt a resolution declaring the necessity for an additional tax levy and specifying the purposes for which such additional tax levy is required. B. Hold a public hearing pursuant to three (3) weeks' published notice in the official newspaper of the City setting forth the contents of the resolution described in Subdivision A. C.Adopt after such public hearing a resolution by an affirmative vote of a least four (4) members of the Council which shall be presented as a clear and concise 'plain language' ballot question at the next regular municipal election. (Ref. Ord. 592, 1102 and 11/7/00 Amendment) D.The additional tax levy shall take effect if 51% of the votes cast at said election are in favor of its adoption. 12-08-2014 Fridley City Charter Chapter 7 Section 7.03 3.Any other fees created, or increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in subsection 2. A.For the purposes of this subsection, "fees" includes sales and use taxes, recycling fees, gas and electric franchise fees and any other fee that produces a tax burden or direct financial obligation for all property owners and/or residents of Fridley. (Ref 1244 Ord 1152, ) B.For the purposes of this subsection, the term "fees" does not include: utility charges, Parks and Recreation Department participation fees, charges for photo-copying, sales of municipal liquor store products, or civil and criminal fines and other charges collected in cases of restitution or violation of law or contract. The term "fees" also does not include rental housing fees, building permit fees, liquor license fees, the extension or transfer of cable television service authority to additional service providers for which fees are already being charged, fees for the operation of junk yards, annual license fees for the operation of pawn shops and other regulated business, and any other charge for services, including health and safety related Code enforcement, and other goods, services or materials routinely provided by the City to its citizens or other members of the public which, by law, must be limited to the actual cost of the service being provided. The term "fees" shall not include any special assessments made under Minnesota Statutes Section 429. (Ref Ord 1152, 1244 ) C.For the purposes of this subsection, "fee increase" includes a new tax or fee, a monetary increase in an existing tax or fee, a tax or fee rate increase, an expansion in the legal definition of a tax or fee base, and an extension of an expiring tax or fee. (Ref Ord 1152) D.For the purposes of this subsection, "city" includes the city itself and all its departments and agencies that are organized to exercise the "Powers of the City" as defined in Chapter 1 of this Charter. "City" shall not include any body of government owing its existence to separate constitutional or statutory authority outside of the Charter, regardless of whether that other body of government has jurisdiction or performs duties and services within the boundaries of the City. (Ref Ord 1152) E.For the purpose of addressing natural disasters this subsection does not apply to any specific emergency measure authorized in Chapter 7, Section .08 (7.08). (Ref 11/7/00 Amendment) Section 7.03. BOARD OF REVIEW. The Council shall constitute a board of review and shall meet as such in the usual place for holding Council meetings to equalize the assessed valuations according to law, and a published notice of such meeting shall be given in the official newspaper of the City at least ten (10) days prior to the day of said meeting. (Ref. Special Election 4/12/60, Ord. 592) 12-08-2014 Fridley City Charter Chapter 7 Section 7.05 Section 7.04. PREPARATION OF ANNUAL BUDGET. 1. The City Manager shall prepare the estimates for the annual budget which shall include any estimated deficit for the current year. The estimates of expenditures shall be submitted by each department to the City Manager. Each estimate shall be divided into three (3) major subdivisions as follows: (a) Salaries and Wages, (b) Ordinary Expenses, (c) Capital Outlay. Salary detail shall show a list of all salaried officers and positions with salary allowance and number of persons holding each. Wages shall be broken down in sufficient detail to justify the request. Ordinary expenses shall be broken down into such detail as the City Manager shall direct. Capital Outlay shall be itemized as to items and amounts. (Ref. Ord. 625) 2. In parallel columns shall be added the amounts expended under similar headings for the two (2) preceding fiscal years, and, as far as practicable, the amounts expended and estimated for expenditure during the current year. In addition to estimates of expenditures, the City Manager shall prepare a detailed statement of revenues collected for the two (2) preceding completed fiscal years with amounts estimated to be collected for the current fiscal year, and an estimate of revenues for the ensuing fiscal year. The estimates shall be submitted o the Council in accordance Minnesota State Law shall be published twice in summary in the official Publication prior to November 15. (Ref. Ord. 625, Ord. 946, Ord 1318) Section 7.05. PASSAGE OF THE BUDGET. The budget shall be a principal item of business at a regular meeting in September. The Council shall hold subsequent meetings from time to time until all the estimates have been considered. The meetings shall be so conducted as to give interested citizens a reasonable amount of time in which to be heard, and an opportunity to ask questions prior to passage of the final budget. The budget estimates shall be read in full and the City Manager shall explain the various items thereof as fully as may be deemed necessary by the Council. The annual budget finally agreed upon shall set forth in such detail as may be determined by the City Council, the complete financial plan of the City for the ensuing fiscal year, and shall be signed by the majority of the Councilupon being adopted. It shall indicate the sums to be raised and from what sources, and the sums to be spent and for what purposes, according to the plan indicated in Section 7.04. The total sum appropriated shall not exceed the total estimated revenue. The Council shall adopt the budget by resolution in accordance with State Law. The resolution shall set forth the total of the budget and the totals of the major divisions of the budget, according to the plan indicated in Section 7.04. The budget resolution as adopted shall be published in the official publication. (Ref. Ord. 625, Ord. 946, Ord 1318) 12-08-2014 Fridley City Charter Chapter 7 Section 7.09 Section 7.06. ENFORCEMENT OF THE BUDGET. It shall be the duty of the City Manager to enforce strictly the provisions of the budget. The City Manager shall not approve any order upon the City Treasurer for any expenditure unless an appropriation has been made in the budget, nor for any expenditure covered by the budget unless there is sufficient unencumbered balance left after deducting the total past expenditures and the sum of all outstanding orders and encumbrances. No officer or employee of the City shall place any orders or make any purchases except for the purposes and to the amounts authorized in the budget. Any obligation incurred by any person in the employ of the City for any purpose not authorized in the budget or for any amount in excess of the amount therein authorized shall be a personal obligation upon the person incurring the expenditure. (Ref. Ord. 857) Section 7.07. ALTERATIONS IN THE BUDGET. After the budget shall have been duly adopted, the Council shall not have power to increase the amounts therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, and in that event, not beyond such actual receipts. The sums fixed in the budget shall be and become appropriated at the beginning of the fiscal year for the several purposes named therein, and no other. The Council may at any time, by resolution passed by a vote of at least four (4) members of the Council, reduce salaries or the sums appropriated for any purpose by the budget, or by vote of at least four (4) members of the Council authorize the transfer of sums from the unexpended balances of the budget to other purposes. (Ref. Ord. 946) Section 7.08. EMERGENCY APPROPRIATION IN THE BUDGET. 1.The Council shall have power to establish an emergency appropriation as a part of the budget, but not to exceed ten percent (10%) of the total budget. Transfers from the emergency appropriation to any other appropriation shall be made only by a vote of at least four (4) members of the Council. 2. The sums transferred to the several departments or divisions shall be considered as a part of such appropriations and shall be used only for the purposes designated by the Council. Section 7.09. LEVY AND COLLECTION OF TAXES. In accordance with Minnesota State Law, the Council shall levy by resolution the taxes necessary to meet the requirements of the budget for the ensuing fiscal year. The City Clerk shall transmit to the county auditor annually, not later than the date required by Minnesota Law, a statement of all the taxes levied, and such taxes shall be collected and the payment thereof be enforced with and in like manner as state and county taxes. No tax shall be invalid by reason of any informality in the manner of levying the same, nor because the amount levied shall exceed the amount required to be raised for the special purpose for which the same is levied, but in that case the surplus shall go into a suspense fund, and shall be used to reduce the levy for the ensuing year. (Ref. Ord. 625, Ord. 946) 12-08-2014 Fridley City Charter Chapter 7Section 7.12.C Section 7.10. TAX SETTLEMENT WITH COUNTY. The City Treasurer shall see to it that all moneys in the county treasury belonging to the City are promptly turned over to the City according to law. Section 7.11. DISBURSEMENTS, HOW MADE. All disbursements shall be made only upon the order of the City Manager and City Clerk, duly authorized by a resolution or motion of the Council, and every such order shall specify the purpose for which the disbursement is made, and indicate the fund out of which it is to be paid. Each such order shall be directed to the Treasurer, and the latter shall issue a check payable to the order of the person in whose favor the order was drawn. The Treasurer shall issue no check upon any City funds except upon such order. In the discretion of the Council the order and check may be a single instrument. No claim against the City shall be allowed unless accompanied by either an itemized bill, or a payroll, or time sheet, each of which shall be approved and signed by the responsible City officer who vouches for the correctness and reasonableness thereof. The Council may by ordinance make additional regulations for the safekeeping and disbursement of the City's funds. The Council may by resolution or motion provide for the regular payment without specific individual authorization by the Council of salaries and wages of regular employees, laborers, and fixed charges which have been previously duly and regularly incurred. Section 7.12. FUNDS TO BE KEPT. There shall be maintained in the City Treasury the following funds: A. A general fund for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all money not provided herein or by statute to be paid into any other fund. B. A debt service fund, into which shall be paid all receipts from taxes or other sources for the payment of principal and interest of all obligations issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. Out of this fund shall be paid the principal and interest of such obligations when due. Any surplus in such fund not needed immediately for debt service may be invested under the direction of the Council in such securities as are authorized by statute for the investment of such funds and such investments may be liquidated at any time. C. A bond fund, into which shall be paid and disbursed the proceeds of all bonds issued by the City except bonds issued on account of any local improvement to be financed wholly or partly by special assessments and bonds issued on account of any municipally owned utility. A separate bond account shall be kept for each issue of such bonds. 12-08-2014 Fridley City Charter Chapter 7Section 7.12.F D.A special assessment fund, which shall be used to finance local improvements that are to be paid for, in whole or in part, from special assessments against benefited property. There shall be paid into this fund: (1) collections of special assessments, with interest, levied against benefited property; (2) proceeds of bonds or certificates of indebtedness sold by the City in anticipation of assessment collections and the proceeds of interfund loans; (3) amounts from other City funds representing either (a) apportionments of costs against the City at large, (b) benefit assessments against City property, or (c) appropriations to maintain the integrity of the fund. There shall be paid out of this fund: (1) all expenses and costs of the improvement projects that are financed through the fund; (2) the redemption of all special assessment fund bonds and certificates of indebtedness, with interest, at or before maturity, and any interfund loans; (3) transfers to the general fund of any unencumbered surplus of the fund, in the discretion of the Council; and (4) abatements of assessments and refunds of receipts in error. The Council shall maintain the integrity of this fund by appropriations from tax funds if necessary, and in addition may by ordinance create and maintain in the fund a cash reserve sufficient for working capital purposes. In order to anticipate the collection of special assessments the Council may by a majority vote issue and sell bonds and certificates of indebtedness, pledging the full faith and credit of the City, or pledging only special assessments, in such amounts and maturities as it may determine, regardless of the provisions of Section 7.16 of this Chapter; provided that the aggregate amount of such bonds and certificates outstanding at any time shall not exceed the sum of the following; (1) all assessments levied and uncollected; (2) assessable cost of work in progress; and (3) the cash reserve for working capital as previously determined by ordinance. In order that the fund may be administered on a self-sustaining basis, all improvement projects financed through it shall upon completion be certified by the City Manager as to total cost, which shall thereupon be apportioned by the Council either as assessments against benefited property or as amounts due from other City funds. Amounts apportioned against other City funds shall be due not later than the dates of adoption of the corresponding assessment rolls, shall be charged interest as in the case of assessments and shall be paid into the fund, with any interest due, not later than one (1) year after the due dates. E. A public utility fund into which shall be paid all money derived from the sale of bonds issued on account of any municipally owned utility and all money derived from the sale of utility services, and from the sale of any property acquired for or used in connection with any such utility. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility, including the principal of and interest upon obligations which have been or shall be issued on its account. Separate accounts within the public utility fund shall be kept for all utilities which are operated separately. F. In addition to the foregoing funds, there may be maintained in the City Treasury, whenever the Council deems it advisable, the following funds: 12-08-2014 Fridley City Charter Chapter 7 Section 7.14 1.A working capital or revolving fund, for financing self-sustaining activities not accounted for through other funds. 2.A trust and agency fund, for the care and disbursement of money received and held by the City as trustee or custodian or in the capacity of an agent for individuals or other governmental units. 3. Such other funds as may be required by statute or ordinance. In lieu of establishing any of the three (3) foregoing types of funds, Subsections 1, 2, and 3, the Council may provide for the recording of operations or activities for which the use of such funds night be suitable through the maintenance of separate accounts in any appropriate fund already established. The Council shall have full power to make by duly adopted ordinance such interfund loans, except from funds held under Subsection 2 hereof, as it may deem necessary and appropriate from time to time. Section 7.13. RECEIPTS TO GO TO CITY TREASURER. All receipts of money belonging to the City, or any branch thereof, excepting only those funds collected by the County Treasurer, shall be paid to the City Treasurer by the person authorized to receive the same. All such moneys, and also all moneys received upon tax settlements from the County Treasurer, shall be deposited as soon as possible in a bank or banks approved by the City Council, subject to state laws regulating the designation of depositories for municipal funds. Section 7.14. ACCOUNTS AND REPORTS. The City Manager shall be the Chief Accounting Officer of the City and of every branch thereof, and the Council may prescribe and enforce proper accounting methods, forms, blanks, and other devices consistent with the law, this Charter and the ordinances in accord with it. The City Manager shall submit to the Council a statement each month showing the amount of money in the custody of the City Treasurer, the status of all funds, the amount spent or chargeable against each of the annual budget allowances and the balances left in each and such other information relative to the finances of the City as the Council may require. The Council may at any time and shall annually provide for an audit of the City finances by a certified public accountant or by the department of the State authorized to make examination of the affairs of municipalities. On or before the first day of April in each year the City Manager shall prepare a complete financial statement in form approved by the Council of the City's financial operations for the preceding calendar year, and quarter, which statement may be published in such manner as the Council may direct and a summary thereof shall be published in the official newspaper on or before the third week in April, July, October and January as appropriate. (Ref. Ord. 625, Ord. 857) 12-08-2014 Fridley City Charter Chapter 7 Section 7.15.2 Section 7.15. BONDED DEBT AND DEBT LIMIT. 1. In addition to all the powers in respect to borrowing and the issuance of bonds and other obligations for the payment of money specifically or impliedly granted by this Charter, and any amendments thereto, the City shall have all the powers in reference to these subject matters granted to cities of its same class by the laws of the State of Minnesota in force from time to time. The City shall have the power to issue and sell its bonds to the State of Minnesota and to comply with all provisions of law relative to loans to municipalities from the permanent State funds. The City shall also have such powers as are necessary to obtain loans or funds from the Government of the United States and any of its instrumentalities or from the State of Minnesota or any of its instrumentalities, and to comply with all provisions of law relative to obtaining such loans or funds. 2. The Council by a vote of at least four (4) of its members may authorize the issuance of the bonds to provide funds for any public purpose not prohibited by law, or may in its discretion, by a majority vote of all of its members submit to the electorate propositions for the issuance of such bonds. When such a proposition is submitted to the electorate, no bonds or other term obligations of the City may be issued except pursuant to a favorable vote of a majority of those voting on the proposition of their issuance. By the proceedings for the issuance of any bonds, by the terms of the bonds and by agreements with the purchasers of bonds, they may be made special in character and limited in their payment to earnings or to part earnings and part tax funds. To the extent that they are thus payable out of earnings or other than tax funds, such bonds shall not be paid out of taxes. The total bonded debt of the City at the time of the issuance of any bonds shall not exceed ten percent (10%) of the last assessed valuation of the taxable property therein, or the limit authorized by State law for cities of the same class, whichever is the greater, but in computing the total bonded debt, certificates of indebtedness, bonds, warrants or other obligations issued before or after adoption of this Charter shall not be included or counted if (1) held in a sinking fund maintained by the City; or (2) issued for the acquisition, equipment, purchase, construction, maintenance, extension, enlargement or improvement of street railways, telegraph or telephone lines, water, lighting, heat and power plants, or either, or any other public convenience from which a revenue is or may be derived, owned and operated by the City, or the acquisition of property needed in connection therewith, or for the construction of public drainage ditches, storm and sanitary sewers, or for the acquisition of lands for streets, parks, or other public improvements or for the improvement thereof, to the extent that they are payable from the proceeds of assessments levied upon property especially benefited by such improvements; or (3) issued for the creation of maintenance of a permanent improvement revolving fund; or (4) for the purpose of anticipating the collection of general taxes for the year in which issued. (Ref. Ord. 857) 12-08-2014 Fridley City Charter Chapter 7 Section 7.18 Section 7.16. FORM AND REPAYMENT OF BONDS. No bonds shall be issued to run for longer than the reasonable life expectancy of the property or improvement for which the bonds are authorized, as ascertained and set forth in the resolution authorizing such bonds, and in no case shall bonds be issued to run for more than thirty (30) years. The purposes for which bonds are authorized shall be set forth in the resolution authorizing them and the proceeds from such bonds shall not be diverted to any other purpose. It shall be the duty of the City Manager to include in the budget estimates each year a sum or sums amply sufficient to pay the principal of, and the interest on, any bonds which are to fall due in the coming fiscal year, and another sum sufficient to pay the interest for the same year on the Bonds which will be still outstanding. It shall be the duty of the Council, enforceable by mandamus upon the suit of any bondholder or taxpayer, to include such sum or sums as may be necessary for this purpose in the annual budget which it passes. (Ref. Ord. 857) Section 7.17. DEBT AND TAX ANTICIPATION CERTIFICATES. 1.If in any year, the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City, as provided for in the budget, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, then the Council may authorize the sale by the City Treasurer of emergency debt certificates to run not to exceed eighteen (18) months and to bear interest at not more than allowable by State Statutes. A tax sufficient to redeem all such certificates at maturity shall be levied as part of the budget of the following year. The authorization of an issue of such emergency debt certificates shall take the form of an ordinance approved by at least four (4) of the members of the Council; the ordinance may, if deemed necessary, be passed as an emergency ordinance. (Ref. Ord. 592) 2. For the purpose of providing necessary moneys to meet authorized expenditures, the Council may issue certificates of indebtedness in any year prior to the receipt of taxes payable in such year, on such terms and conditions as it may determine, bearing interest at a rate not more than allowable by State Statutes; provided that such certificates outstanding at any one time shall not exceed forty percent (40%) of the tax levy payable in the current year belonging to the fund for the benefit of which the borrowing is authorized. (Ref. Ord. 592) Section 7.18. BONDS OUTSIDE THE DEBT LIMIT. Without limit as to amount, the Council may issue bonds for legal purposes outside of the debt limit: (a) for the creation and maintenance of a permanent improvement revolving fund, (b) for extending, enlarging, or improving water supply system, lighting and heat and power plants, or either, or other revenue-producing public utilities of whatever nature, owned and operated by the City, or of acquiring property needed in connection therewith, (c) for public improvements payable from special assessments. The Council may also purchase equipment for street department, water or sewer utility, or fire department use on conditional sale contracts, provided that the installment payments do not extend beyond the estimated useful life of the equipment so purchased. 12-08-2014 From:Skogen, Deb To:"Pam Reynolds" Cc:Wysopal, Wally;Foster, Jake;"Braam, Gary";"Crandall, Zach";"Findell, Don";"Flickinger, Marion";"Granroos, Manuel";"Kranz, Ted";"Nelson, Rick";"Olawore, Novella";"Ostwald, David";"Reiland, Barb";"Scholzen, Lois"; "Soule, Cindy";"Stark, Avonna";"Walch, Richard" Subject:RE: Chapter 7.02 activity Date:Tuesday, November 22, 2016 2:04:00 PM Attachments:CHM 09-06-2016.pdf MS 410.06.pdf Pam, I would like to respond to your questions as best I can. Discussion of Section 7.02 of the Charter – During the budget work sessions, staff and Council began discussing this section due to levy limit restrictions. City Manager Wysopal came to the Charter Commission meeting in September to bring the Charter Commission into the discussion with staff and Council. The minutes of the September CharterCommission reflect that discussion. During that discussion, a survey was discussed, the Charter Commissioners agreed to participate in the discussions and survey. The survey was created, mailed out and tabulated. In addition, Jake is researching and working on the issue at the direction of the City Manager. I understand that this th information was shared with the Charter Commission on November 17 in an email and that it will be on the upcoming January Agenda as determined in October. While the Commission may be autonomous, as long as I have been with the City, this Commission has always tried to work to keep the lines of communication open with the City Council. Commission Attorney – As state law regulates that the Commission cannot spend more than $1,500 annually, as shown by MS 410.06 attached, the Commission does not maintain an attorney on retainer. If the Charter Commissioner determines they would like to have an attorney review their work, then we would have to look for an attorney for them. If the fees are more than $1500, the Commission/staff liaison would bring the funding issue to the City Council for approval. th The 10 District Court Chief Judge can be found at this URL: http://www.mncourts.gov/About-The- Courts/Overview/JudicialDirectory/Bio.aspx?id=362 I hope this helps to answer some of your questions. Deb Skogen, City Clerk 763-572-3523 FAX 763-502-4981 From: Pam Reynolds \[mailto:fnpam@hotmail.com\] Sent: Monday, November 21, 2016 5:57 PM To: Skogen, Deb <Deb.Skogen@fridleymn.gov> Subject: Chapter 7.02 activity Deb, As the Chair of the Charter Committee I am concerned with the current activities regarding Chapter 7.02. Statute provides for 3 ways to amend the Charter and I don't think this is one of them. How has the City intern appointed himself as a quasi member of the Commission? It is my opinion that this process needs to stop until you, as the liaison of the city, can provide me with something that says this is kosher. The Charter Commission has an autonomy for good reason. Please provide me with the contact info for the District Judge who is responsible for oversight of our Charter Commission as well as the name and contact info for the attorney for the Charter Commission so that I may verify that this process is legit. If the Council wishes to submit language to the Commission that's fine but I see this as leading. Pam Reynolds I Fridley City Hall 6431 University Ave N.E. Fridley, MN 55432 (763) 571-- Dear Council and Commission Members, Thank you for the response to the survey sent last month in regards to your knowledge of how the levy restriction included in Chapter 7 of the Cit charter came to be. Responses to the survey indicated there is a need to learn more about how and why the levy limit was imposed. In addition, several respondents asked for suggestions on what other measures could be more relevant. As per this request, we have identified a few indexes and trends that may be helpful in analyzing and evaluating the appropriateness of the levy restriction in reaching its intended goals. We are looking to get your opinions on the , whether they make sense to analyze, and if there are any others that might be helpful to include. some suggestions for financial trends you may want to analyze and a history of levy restriction as they relate to Fridley and the State. Please return the attached document with your suggestions for additional information by Monday, November 28, 2016. Once we have received your responses, we will be sending you data relating to the most requested thnd metrics or indexes on December 9, with the remaining metrics being sent on December 22. After you have received all of the reports, please review them with the expectation to discuss them during the first Charter Commission meeting in January 2017. Sincerely, Jake Foster, City Management and Elections Intern Cc, Wally Wysopal, City Manager General indexes ΛƦƌĻğƭĻ ĭŷĻĭƉ ƷŷĻ Ĭƚǣ ŅƚƩ źƓķĻǣĻƭ Ǥƚǒ Ǟƚǒƌķ ƌźƉĻ ƒƚƩĻ źƓŅƚƩƒğƷźƚƓ ƚƓΜʹ For the purpose of this strength of a related variable, or could potentially be used in calculating future levies. LOCAL MEASURES Local GDP (Minneapolis-St. Paul-Bloomington): Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a given area. It seeks to measure the overall of health of a local economy. The local GDP for the Minneapolis-St. Paul-Bloomington area should help us to better understand how our local economy is, and has been, performing. Local per Capital Personal Income (Minneapolis-St. Paul-Bloomington): The local per capital income measure is the average income of the people in an economic unit, in this case, Minneapolis-St. Paul- Bloomington. It measures the aggregate of all sources of income dividing it by the population. Local Unemployment Rate (Minneapolis-St. Paul-Bloomington): This measure can also be used to provide insight on the overall well-being of the local economy. Local Average Property Value: As the local tax levy is a property tax, the local property values can help to determine tax capacity and an appropriate tax levy. NATIONAL MEASURES Average budgeted salary increase: As administrative costs, including employee salaries, are one of the biggest expenditures in local government, it might also make sense to look at these changes in the increases. National Gross Domestic Income: The gross national income (GNI) is the total domestic and foreign output claimed by residents of a country (U.S.). This measures the GDP plus any income earned by foreign residents, minus any domestic income earned by nonresidents. This measure is used to get a sense of the strength of the national economy based on income. State and Local Government Investment: This metric tracks the total investment and other expenditures for state and local government across the country. It can be used to illustrate how government investment and expenditures change over time. SLINV can help us to develop a better understanding regarding the path expenditures and investment have taken within cities throughout the country to shed some light on the typical rate of change for typical state and local governments. Implicit Price Deflator: The implicit prices deflator (GDP deflator) is an index that is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. Similar to the CPI, this index provides another metric to provide some insight as to the current buying power of the government and the trend in costs they may be facing. This measure is also used by the state to implement their own levy restrictions. Municipal Cost Index: This index was created and is monitored by American City and County, and aims to measure the true cost of providing services to residents of cities and counties. It functions similarly to the CPI and the Implicit Price Deflator. Other(list here): Fridley Indicators ΛƦƌĻğƭĻ ĭŷĻĭƉ ƷŷĻ Ĭƚǣ ŅƚƩ źƓķźĭğƷƚƩƭ Ǥƚǒ Ǟƚǒƌķ ƌźƉĻ Ʒƚ ƭĻĻ ƒƚƩĻ źƓŅƚƩƒğƷźƚƓ ƚƓΜʹ Historical Fund Balances for Fridley: Historical information on fund balances and a trend line to show where they are anticipated to be in 5 to 10 years. Historical Levies for Fridley: Historical information on past levies and the % change each year. Historical Market Values for Fridley: Historical information on the total market values in the City. Often in cities with growth or when a TIF district decertifies it increases the taxable base helping to cushion a levy increase. With a CPI based levy restriction, property values have no bearing on what is levied. Historical Demographics for Fridley: Historical information on the citizens living in the community. The changing demographics over the years help demonstrate where City services are now being directed. Other (list here): Comparison with neighboring/similar cities ΛƦƌĻğƭĻ ĭŷĻĭƉ ƷŷĻ Ĭƚǣ ŅƚƩ ĭƚƒƦğƩźƭƚƓƭ Ǥƚǒ Ǟƚǒƌķ ƌźƉĻ Ʒƚ ƭĻĻ ƒƚƩĻ źƓŅƚƩƒğƷźƚƓ ƚƓΜʹ Operational levy change year to year: As local tax levies fund operational expenses, this information will allow us to compare the change of our operational levies with neighboring and similar cities. Impact of fiscal disparities: The fiscal disparities program shifts tax value from city to city depending on their tax base. Under these programs, a portion of the growth in commercial, industrial, and public utility property value of each community is contributed to a tax base sharing pool. Each community receives a distribution of property value from the pool based on the market value and population of each city. As Fridley is a city that loses revenue due to this program, we can attempt to evaluate the impact this program has on tax payers in the city. We can also use this to determine what the cost to the tax payer would be if Fridley received fiscal disparities at the rates surrounding cities do. Revenue Sources: By identifying what some of our neighboring cities have for revenue sources we can attempt to evaluate the impact or relief those revenues have on their tax levy. Tax Capacity Rates: This is the rate used to calculate tax levies using average home values. General Comparison with Statutory Cities: This would be a general comparison regarding the restrictions statutory cities face regarding their annual tax levies, as well as where areas of our Charter may be more or less restrictive by comparison. Other (list here): History of levy restrictions for cities in Minnesota: Fridley: In 1957, the original charter had and personal property within the city for general city purposes shall not exceed 30 mills on each dollar asure that would increase the limit from 30 to 40 mills was voted down by Fridley residents. addition to the powers by this Charter expressly or impliedly granted, all the powers to raise money by taxation pursuant to the laws of the State which are applicable to cities of the class of which it may be a member from time to time, provided that the amount of taxes levied against real and personal property within the City for general City purposes shall not exceed in dollars, a tax levy that is greater than the prior year tax levy increased by an inflationary index defined by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban consumers in the Minneapolis, St. Paul metropolitan A petition received on August 21, 2000 to amend Section 7.02 (Power of Taxation), and on September 11, 2000 the City council passed a resolution for the question to be placed on the General Election ballot on November 7, 2000 which eventually passed. Ordinance No. 1152, adopted April 9, 2001, to amend Section 7.02 (Power of Taxation), as a result of the election, a citizen committee was formed who made a recommendation to the Charter Commission to amend the petition language. The Charter Commission recommended the amendment to the City council subsection 1, shall require Ordinance No. 1196, adopted July 8, 2004, to amend Section 7.02.3 (Power of Taxation). A petition objecting to the adopted ordinance was received suspending the ordinance and sending the question to the general election. The question failed and the ordinance did not become effective. This ordinance fees considered. Ordinance No. 1206, adopted August 4, 2005, sent a question to amend Section 7.02.3 to a special election. The question failed and the charter was not amended. This amended sought to change the restriction language to an increase of 5% or the inflationary rate of the CPI whichever is lower. Resolution No. 2006-53, adopted August 28, 2006, sent a question to amend Section 7.023 to the general election. The question failed and the charter was not amended. This language was to approve the ability for the city to raise the tax levy from increased water, storm water, and sanitary sewer rates above the 5% or CPI. Ordinance No. 1244, adopted June 25, 2007 amended Section 7.02.3 of the charter, A petition objecting to the adopted ordinance and amendment was received suspending the ordinance and sending the question to a special election. The question passed and the Ordinance was approved, thereby amending Section 7.02.3 instead to Section B. Ordinance No. 1260, adopted July 27, 2009, amending Section 7.02.3. A petition objecting to the adopted ordinance and amendment was received suspending the ordinance and sending the question to a special election on December 8, 2009. The question failed and the ordinance was repealed, thereby leaving Section 7.02 the same. This ordinance sought to authorize the city to increase the tax levy beyond 5% or the CPI. Mounds View: Adopted in 2006, the levy restriction Mounds View has in place limits the levy increase to 5 percent from the previous year, or the CPI plus 2 percent, whichever scenario equates to the lower increase. Mounds view also has franchise fees in place for both gas and electric utilities. West St. Paul: In 1972, the original charter allowed for the city to levy a maximum of $25 per capita (per resident) with the number adjusted through the CPI in addition to the figure levied in the prior year. In September of 2001, the Charter Commission approved unanimously an ordinance that allowed the city to levy beyond the restriction to replace lost state aids, with the knowledge that this ordinance will only support the 2002 budget and they will likely face a similar problem in the following year. In 2005, due to another loss of government aid and facing the potential to cut an addition $208,000 from the budget in 2006, the Charter Commission voted to allow the city to tax beyond their levy restriction again. In 2007, the Charter Commission voted to change the index used for the adjustment factor in the levy restriction from the Consumer Price Index (CPI) to the Implicit Price Deflator (IPD) as proposed by the finance director citing that it was a better fit for government expenses and tied closer to property values. They held a public hearing for the change, moved forward without objection, and unanimously passed the ordinance. This changed the language/restriction from a $25 per capita tax limit using the CPI as an adjustment factor to a $360 per capita limit with using the IPD as an adjustment factor. In 2012, the Charter Commission unanimously recommended 13 amendments to the City Charter. Among those recommendations was to remove the limitations o amendments require a unanimous vote by the City Council to effective, and the City Council unanimously agreed to remove the levy restriction provision in the Charter. Statutory Limits: All Statutory Cities and most Charter Cities follow levy limits set by the State Legislature (Minn. Stat 275.70 through 275.74). Levy limits apply to cities with populations over 2,500, but only if the state Legislature imposes them. If limits are in place, the commissioner of revenue calculates the levy limit for each city and notifies cities of their levy limits by Aug. 1. Each session, the Legislature may modify the calculation of levy limits For charter city property tax limits, state law now permanently extends and modifies a law that authorizes the governing body of a charter city to increase its levy over a charter levy limit for aid and credit cuts imposed by the Legislature. The exemption is equal to the special levy authorizations listed in state law, which allows for replacement of unalloted or legislatively reduced LGA. This change is effective for charter city property tax levies payable in calendar year 2011 and thereafter (Minn. Stat. 275.75). Below is the historical limits as imposed by the legislature City of Fridley FiscalUnemploymentPersonal YearPopulationRateIncome 199528,2043.2%$17,642 199628,2673.4%$18,672 199728,4192.6%$20,808 199828,3352.1%$22,405 199928,6232.3%$24,113 200027,4492.8%$25,357 200127,8543.6%$25,995 200227,8774.4%$28,324 200327,4604.3%$22,687 200427,4805.0%$25,169 200527,0885.0%$25,682 200626,6794.6%$26,387 200726,6034.8%$26,792 200826,4595.7%$26,792 200926,4227.9%$26,045 201027,2087.3%$27,350 201127,5155.5%$27,095 201227,5915.6%$27,172 201327,7854.4%$27,862 201427,9524.2%$25,773 201528,0393.9%$26,185 ViewMinneapolisFridley increase Fridley in in taxes located $16 in property a $171,000 inwere results it homesif at Communites less FiscalDisparities valued $150 BrightonMounds valued home Heights about median A Surrounding pay 2017, Example: Columbia Fridley would the ParkNew For to of RapidsBrooklyn Disparities Fiscal ParkCoon of Benefit Lake CenterSpring Net Brooklyn Columbia Heights 25%20%15%10% 5%0%5% City of Fridley Historical Data Estimated Market City Tax Capacity Value % changeRate% change 1983776,074,092 1984802,180,0003% 1985807,910,5001% 1986839,392,0004% 1987879,498,6005% 1988907,274,9003% 1989941,136,6004% 1990998,231,5006% 19911,002,812,9000% 19921,057,532,0005% 19931,064,099,2001% 19941,068,474,2000% 19951,090,023,9022%16.098 19961,120,412,0653%16.5653% 19971,152,674,7003%15.242-8% 19981,274,348,50011%17.11912% 19991,293,664,3002%18.3267% 20001,335,542,9003%17.07-7% 20011,518,347,80014%16.35-4% 20021,688,141,10011%29.90683% 20031,958,021,10016%28.616-4% 20042,149,055,10010%30.2486% 20052,278,619,3006%33.56511% 20062,469,670,1008%31.941-5% 20072,616,727,3006%31.349-2% 20082,701,388,8003%30.324-3% 20092,698,943,7000%28.64-6% 20102,561,173,300-5%32.25813% 20112,352,567,900-8%36.48613% 20122,278,659,000-3%39.6159% 20132,057,500,500-10%47.36220% 20141,948,580,100-5%48.5773% 20152,146,063,30010%43.508-10% 20162,207,363,4003%44.963% 20172,417,228,60010%48.1697% is used to is the ratio of current dollar gross domestic product (GDP) to constant dollar GDP for state and local governments. The ratio ƩĻƦƩĻƭĻƓƷƭ ğƌƌ ŭƚƚķƭ ğƓķ ƭĻƩǝźĭĻƭ ƦǒƩĭŷğƭĻķ ŅƚƩ ĭƚƓƭǒƒƦƷźƚƓ ĬǤ ƷŷĻ ƩĻŅĻƩĻƓĭĻ ƦƚƦǒƌğƷźƚƓ The League of Minnesota Cities & Bureau of Economic Analysis account for the effects of inflation. Implicit Price Deflator Sources: /tL ŷĻ This rea Bloomington metro a - St. Paul - The market value of goods and services produced by labor and property in the Minneapolis represents all goods and services purchased for consumption by the reference population Bureau of Labor Statistics & Bureau of Economic Analysis: U.S. Department of Commerce \[ƚĭğƌ D5t 5ĻŅźƓźƷźƚƓʹ ʹ /tL ƭ {ƚǒƩĭĻ The Median Fiscal Disp School Value 2017 Total Net CountyCityDistrictHome Taxes Recipient HennepinBrooklyn Park281190,900$3,215Yes RamseyRoseville621226,800$3,211No HennepinMinneapolis1205,500$3,163No RamseyNew Brighton621226,600$3,135Yes HennepinCrystal281166,000$2,850Yes HennepinBrooklyn Center281150,000$2,719Yes RamseyMounds View621184,350$2,536Yes AnokaSpring Lake Park16167,100$2,291Yes AnokaFridley14161,600$2,270No AnokaFridley16161,600$2,162No AnokaBlaine11185,200$1,991Yes AnokaColumbia Heights13149,600$1,949Yes AnokaFridley11161,600$1,904No AnokaFridley13161,600$1,903No AnokaCoon Rapids11163,400$1,848Yes AnokaAnoka11166,600$1,827Yes Source: Star Tribune 11/11/16 & League of Minnesota Cities rvices that are included in GDP This is a measure of state and local government spending on goods and se Bureau of Economic Analysis: U.S. Department of Commerce 5ĻŅźƓźƷźƚƓʹ {ƚǒƩĭĻƭʹ ǒƓźƚƓ ĻƒƦƌƚǤĻĻƭ ŅƚƩ ƷŷĻ ŅƚƩƷŷĭƚƒźƓŭ ǤĻğƩ͵ ŷĻƭĻ ƦĻƩĭĻƓƷğŭĻƭ ğƩĻ ƷǤƦźĭğƌƌǤ ĬğƭĻķ ǒƦƚƓ ƉĻĻƦźƓŭ ǞğŭĻƭ ĭƚƒƦĻƷźƷźǝĻ ƩğƷŷĻƩ ƷŷğƓ ğƓ źƓŅƌğƷźƚƓğƩǤ ƒĻğƭǒƩĻ͵ Ώ Ʒƚ ğƌƌ ƓƚƓ ĬǒķŭĻƷ ŅƚƩ ğƓķ ƦƩƚǝźķĻķ Ɠ ƩĻƦƩĻƭĻƓƷƭ ğƌƌ ŭƚƚķƭ ğƓķ ƭĻƩǝźĭĻƭ ƦǒƩĭŷğƭĻķ ŅƚƩ ĭƚƓƭǒƒƦƷźƚƓ ĬǤ ƷŷĻ ƩĻŅĻƩĻƓĭĻ ƦƚƦǒƌğƷźƚ ƓĭƩĻğƭĻ ƚŅ ƷŷĻ ǤĻğƩƌǤ ź źƭ ƷŷĻ ƦĻƩĭĻƓƷ ĭŷğƓŭĻ .ǒƩĻğǒ ƚŅ \[ğĬƚƩ {ƷğƷźƭƷźĭƭ ŷĻ ĬǒķŭĻƷĻķ ƭğƌğƩǤ źƓĭƩĻğƭĻ {ƚǒƩĭĻƭʹ L /t ŷĻ FRIDLEY CITY CHARTER CHAPTER 10. FRANCHISES AND PUBLIC UTILITIES Section 10.01. DEFINITION OF FRANCHISES. The word "franchise" as used in this Charter shall be construed to include all privileges granted to any person, firm, association or corporation in, over, upon or under any of the highways or public places of the City, whether such privileges have been or shall hereafter be granted either by the City or by the State of Minnesota. Section 10.02. FRANCHISE ORDINANCES. The Council may grant franchises by ordinance adopted by an affirmative vote of at least four (4) members of the Council, but in no case shall a franchise be granted by an emergency ordinance, nor within twenty (20) days after a public hearing thereon as provided for in Section 10.09, or later than sixty (60) days after such public hearing. Franchise rights shall always be subject to the superior right of the public to the use of streets and public places. All corporations, co-partnerships, persons or other entity desiring to make an especially burdensome use of the streets or public places inconsistent with the public's right in such places, or desiring the privilege of placing in, over, upon or under any street or public place any permanent or semi-permanent fixtures for the purpose of constructing or operating street or other railways, or for telephoning or telegraphing or transmitting electricity, or transporting by pneumatic tubes, or for furnishing to the City or its inhabitants or any portion thereof transportation facilities, water, light, heat, power, or any other public utility, or for any other purpose, may be required to obtain a franchise before proceeding to make such use of the streets or public places or before proceeding to place such fixtures in such places. Every ordinance granting or extending any franchise shall contain all the terms and conditions of the franchise. A franchise shall be without any validity whatever until it has been unconditionally accepted in all its terms, and such acceptance, properly executed by the grantee, has been filed with the City Clerk. Section 10.03. COST OF PUBLICATION OF FRANCHISE. The grantee shall bear the cost of publication of the franchise ordinances and shall deposit sufficient cash to guarantee the publication before the ordinance is passed. Section 10.04. POWER OF REGULATION RESERVED. The City shall have the right and power to regulate and control the exercise by a corporation, co- partnership, person or other entity, of any franchise, however acquired, and whether such franchise has been heretofore granted by the City of Fridley or by the State of Minnesota, or shall hereafter be granted by the City or by the State of Minnesota. (Ref. Ord. 592) Section 10.05. RATES AND CHARGES. Every public utility or franchisee making use of the streets or public places within the City shall give courteous, efficient and adequate service at reasonable rates. A reasonable rate shall be construed to be one which will, with efficient management, normally yield a fair return on all property used and useful in furnishing service to the City and its inhabitants. This shall not be construed as a guaranty of a return and in no case shall there be any return upon franchise value. Within these limits the determination of maximum rates, fares, or charges to be charged by any public utility or franchisee for service rendered to the City or any person, persons, firm or corporation within the City, shall be made, if possible, by direct negotiations between the public utility or franchisee and the Council. In case of failure to reach an agreement by this method within a reasonable time the Council may, in its discretion, agree to submit to arbitration on such terms as it may deem feasible or upon such terms as the franchise provides for, the fixing of rates, fares, or charges by the public utility or franchisee; provided, however, that the rates, fares, or charges so fixed by arbitration shall not be binding on the City for more than five (5) years. (Ref. Ord. 625) Section 10.06. PROVISIONS OF FRANCHISES. Every Franchise shall contain among other things, provisions, relating to the following: 1. The term of the franchise granted, which shall not exceed twenty-five (25) years. 2. Rates, fares and charges to be charged by the public utility or franchisee in compliance with the terms and provisions of Section 10.05. 3. The rights reserved to the City in connection with the erection of poles, masts or other fixtures in the streets or public places and the attachment of wires thereto, the laying of tracks in or of pipes or conduits under the streets or public places, and the placing in the streets or other public places of any permanent or semi-permanent fixtures or equipment by the public utility or franchisee. 4. The prompt repair by the public utility or franchisee of all damages to the public streets, alleys and public property occasioned by the acts or omissions of the public utility or franchisee. 5. The rights of the City to have access to all books, records, and papers of the public utility or franchisee which in any way deal with, affect or record its operations within and pertaining to the City and pertaining to property and equipment used and useful in furnishing service to the City and its inhabitants. 6. The power and the right of the City to submit to arbitration the fixing of any rates, fares or charges to be made by the public utility or franchisee. 7.The right of the public utility or franchisee to receive upon condemnation proceedings brought by the City to acquire the public utility or franchisee compensation for its franchise or the value thereof, if any. (Ref. Ord. 625) Section 10.07. FURTHER PROVISIONS OF FRANCHISES. The enumeration and specification or particular matters which must be provided for in every franchise or renewal or extension thereof shall not be construed as impairing the right of the City to insert in any such franchise or renewal or extension thereof such other and further conditions and restrictions as the Council may deem proper to protect the City's interests, nor shall anything contained in this Charter limit any right or power possessed by the City over existing franchises. Section 10.08. RENEWALS OR EXTENSION OF FRANCHISES. Every extension, renewal or modification of any existing franchise or of any franchise granted hereunder shall be subject to the same limitations and granted in the same manner as a new franchise. Section 10.09. PUBLIC HEARINGS. Before any franchise ordinance is adopted or any rates, fares or charges to be charged by the public utility or franchisee are fixed, there shall be a public hearing by the Council in regard thereto. Notice of such public hearing shall be given by published notice at least once in the official newspaper not less than twenty (20) days prior to the date of such public hearing. Additional notice of such public hearing may be given in such manner as the Council shall determine. (Ref. Ord. 625) City of Fridley, 6431 University Avenue NE, Fridley, MN 55432 •• Jake Foster, City Management and Elections Intern 763-572-3523 jake.foster@fridleymn.gov Dear Council and Charter Commission Members, Please find the enclosed documents that were requested to further evaluate Chapter 7 of the City Charter. These documents represent the first round of metrics you will be receiving. Included are data relatingto: Local Per Capita Personal Income Municipal Cost Index Historical Fund Balances for Fridley Historical Levies for Fridley/Operational Levy Change year over year Revenue Sources/Franchise Fees in other cities General Comparison with Statutory Cities If any questions or concerns should arise, please feel free to contact me at jake.foster@fridleymn.govor 763.572.3508. Thank you! Sincerely, Jake Foster, City Management and Elections Intern Cc: Wally Wysopal, City Manager Fridley City Hall 6431 University Ave N.E. Fridley, MN 55432 (763) 571-3450 • FAX (763) 571-1287 • FridleyMN.gov Dear Council and Commission Members, Thank you for the response to the survey sent last month in regards to your knowledge of how the levy restriction included in Chapter 7 of the City’s charter came to be. Responses to the survey indicated there is a need to learn more about how and why the levy limit was imposed. In addition, several respondents asked for suggestions on what other measures could be more relevant. As per this request, we have identified a few indexes and trends that may be helpful in analyzing and evaluating the appropriateness of the levy restriction in reaching its intended goals. We are looking to get your opinions on the indexes we’ve identified, whether they make sense to analyze, and if there are any others that might be helpful to include. We’ve also included some suggestions for financial trends you may want to analyze and a history of levy restriction as they relate to Fridley and the State. Please return the attached document with your suggestions for additional information by Monday, November 28, 2016. Once we have received your responses, we will be sending you data relating to the most requested thnd metrics or indexes on December 9, with the remaining metrics being sent on December 22. After you have received all of the reports, please review them with the expectation to discuss them during the first Charter Commission meeting in January 2017. Sincerely, Jake Foster, City Management and Elections Intern Cc, Wally Wysopal, City Manager General indexes (please check the box for indexes you would like more information on): For the purpose of this exercise, the term “index” will refer to any metric that is used to measure the strength of a related variable, or could potentially be used in calculating future levies. LOCAL MEASURES Local GDP (Minneapolis-St. Paul-Bloomington): Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a given area. It seeks to measure the overall of health of a local economy. The local GDP for the Minneapolis-St. Paul-Bloomington area should help us to better understand how our local economy is, and has been, performing. Local per Capital Personal Income (Minneapolis-St. Paul-Bloomington): The local per capital income measure is the average income of the people in an economic unit, in this case, Minneapolis-St. Paul- Bloomington. It measures the aggregate of all sources of income dividing it by the population. Local Unemployment Rate (Minneapolis-St. Paul-Bloomington): This measure can also be used to provide insight on the overall well-being of the local economy. Local Average Property Value: As the local tax levy is a property tax, the local property values can help to determine tax capacity and an appropriate tax levy. NATIONAL MEASURES Average budgeted salary increase: As administrative costs, including employee salaries, are one of the biggest expenditures in local government, it might also make sense to look at these changes in the public sector and in all industry/private sector, and compare them to Fridley’s observed yearly pay increases. National Gross Domestic Income: The gross national income (GNI) is the total domestic and foreign output claimed by residents of a country (U.S.). This measures the GDP plus any income earned by foreign residents, minus any domestic income earned by nonresidents. This measure is used to get a sense of the strength of the national economy based on income. State and Local Government Investment: This metric tracks the total investment and other expenditures for state and local government across the country. It can be used to illustrate how government investment and expenditures change over time. SLINV can help us to develop a better understanding regarding the path expenditures and investment have taken within cities throughout the country to shed some light on the typical rate of change for typical state and local governments. Implicit Price Deflator: The implicit prices deflator (GDP deflator) is an index that is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. Similar to the CPI, this index provides another metric to provide some insight as to the current buying power of the government and the trend in costs they may be facing. This measure is also used by the state to implement their own levy restrictions. Municipal Cost Index: This index was created and is monitored by American City and County, and aims to measure the true cost of providing services to residents of cities and counties. It functions similarly to the CPI and the Implicit Price Deflator. Other(list here): Fridley Indicators (please check the box for indicators you would like to see more information on): Historical Fund Balances for Fridley: Historical information on fund balances and a trend line to show where they are anticipated to be in 5 to 10 years. Historical Levies for Fridley: Historical information on past levies and the % change each year. Historical Market Values for Fridley: Historical information on the total market values in the City. Often in cities with growth or when a TIF district decertifies it increases the taxable base helping to cushion a levy increase. With a CPI based levy restriction, property values have no bearing on what is levied. Historical Demographics for Fridley: Historical information on the citizens living in the community. The changing demographics over the years help demonstrate where City services are now being directed. Other (list here): Comparison with neighboring/similar cities (please check the box for comparisons you would like to see more information on): Operational levy change year to year: As local tax levies fund operational expenses, this information will allow us to compare the change of our operational levies with neighboring and similar cities. Impact of fiscal disparities: The fiscal disparities program shifts tax value from city to city depending on their tax base. Under these programs, a portion of the growth in commercial, industrial, and public utility property value of each community is contributed to a tax base sharing pool. Each community receives a distribution of property value from the pool based on the market value and population of each city. As Fridley is a city that loses revenue due to this program, we can attempt to evaluate the impact this program has on tax payers in the city. We can also use this to determine what the cost to the tax payer would be if Fridley received fiscal disparities at the rates surrounding cities do. Revenue Sources: By identifying what some of our neighboring cities have for revenue sources we can attempt to evaluate the impact or relief those revenues have on their tax levy. Tax Capacity Rates: This is the rate used to calculate tax levies usingaverage home values. General Comparison with Statutory Cities: This would be a general comparison regarding the restrictions statutory cities face regarding their annual tax levies, as well as where areas of our Charter may be more or less restrictive by comparison. Other (list here): History of levy restrictions for cities in Minnesota: Fridley: In 1957, the original charter had a restriction in place stating, “The amount of taxes levied against real and personal property within the city for general city purposes shall not exceed 30 mills on each dollar of the assessed valuation of the property taxable in the city.” In 1960, a measure that would increase the limit from 30 to 40 mills was voted down by Fridley residents. Ordinance No. 1102, adopted September 8, 1997, amended section 7.02 to read, “The City shall have, in addition to the powers by this Charter expressly or impliedly granted, all the powers to raise money by taxation pursuant to the laws of the State which are applicable to cities of the class of which it may be a member from time to time, provided that the amount of taxes levied against real and personal property within the City for general City purposes shall not exceed in dollars, a tax levy that is greater than the prior year tax levy increased by an inflationary index defined by the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban consumers in the Minneapolis, St. Paul metropolitan area.” A petition received on August 21, 2000 to amend Section 7.02 (Power of Taxation), and on September 11, 2000 the City council passed a resolution for the question to be placed on the General Election ballot on November 7, 2000 which eventually passed. Ordinance No. 1152, adopted April 9, 2001, to amend Section 7.02 (Power of Taxation), as a result of the election, a citizen committee was formed who made a recommendation to the Charter Commission to amend the petition language. The Charter Commission recommended the amendment to the City council. The language added stated, “ Any other fees created, or increased beyond the limits set forth in subsection 1, shall require voter approval as stipulated in subsection 2.” Ordinance No. 1196, adopted July 8, 2004, to amend Section 7.02.3 (Power of Taxation). A petition objecting to the adopted ordinance was received suspending the ordinance and sending the question to the general election. The question failed and the ordinance did not become effective. This ordinance was set to remove “recycling fees” and make an exception for storm water and sanitary sewer from the fees considered. Ordinance No. 1206, adopted August 4, 2005, sent a question to amend Section 7.02.3 to a special election. The question failed and the charter was not amended. This amended sought to change the restriction language to an increase of 5% or the inflationary rate of the CPI whichever is lower. Resolution No. 2006-53, adopted August 28, 2006, sent a question to amend Section 7.023 to the general election. The question failed and the charter was not amended. This language was to approve the ability for the city to raise the tax levy from increased water, storm water, and sanitary sewer rates above the 5% or CPI. Ordinance No. 1244, adopted June 25, 2007 amended Section 7.02.3 of the charter, A petition objecting to the adopted ordinance and amendment was received suspending the ordinance and sending the question to a special election. The question passed and the Ordinance was approved, thereby amending Section 7.02.3. The removed the words “utility charges” from Section A., but adding them instead to Section B. Ordinance No. 1260, adopted July 27, 2009, amending Section 7.02.3. A petition objecting to the adopted ordinance and amendment was received suspending the ordinance and sending the question to a special election on December 8, 2009. The question failed and the ordinance was repealed, thereby leaving Section 7.02 the same. This ordinance sought to authorize the city to increase the tax levy beyond 5% or the CPI. Mounds View: Adopted in 2006, the levy restriction Mounds View has in place limits the levy increase to 5 percent from the previous year, or the CPI plus 2 percent, whichever scenario equates to the lower increase. Mounds view also has franchise fees in place for both gas and electric utilities. West St. Paul: In 1972, the original charter allowed for the city to levy a maximum of $25 per capita (per resident) with the number adjusted through the CPI in addition to the figure levied in the prior year. In September of 2001, the Charter Commission approved unanimously an ordinance that allowed the city to levy beyond the restriction to replace lost state aids, with the knowledge that this ordinance will only support the 2002 budget and they will likely face a similar problem in the following year. In 2005, due to another loss of government aid and facing the potential to cut an addition $208,000 from the budget in 2006, the Charter Commission voted to allow the city to tax beyond their levy restriction again. In 2007, the Charter Commission voted to change the index used for the adjustment factor in the levy restriction from the Consumer Price Index (CPI) to the Implicit Price Deflator (IPD) as proposed by the finance director citing that it was a better fit for government expenses and tied closer to property values. They held a public hearing for the change, moved forward without objection, and unanimously passed the ordinance. This changed the language/restriction from a $25 per capita tax limit using the CPI as an adjustment factor to a $360 per capita limit with using the IPD as an adjustment factor. In 2012, the Charter Commission unanimously recommended 13 amendments to the City Charter. Among those recommendations was to remove the limitations on the city’s property tax levy. These amendments require a unanimous vote by the City Council to effective, and the City Council unanimously agreed to remove the levy restriction provision in the Charter. Statutory Limits: All Statutory Cities and most Charter Cities follow levy limits set by the State Legislature (Minn. Stat 275.70 through 275.74). Levy limits apply to cities with populations over 2,500, but only if the state Legislature imposes them. If limits are in place, the commissioner of revenue calculates the levy limit for each city and notifies cities of their levy limits by Aug. 1. Each session, the Legislature may modify the calculation of levy limits and may determine what, if any, “special” levies are exempt from levy limits. For charter city property tax limits, state law now permanently extends and modifies a law that authorizes the governing body of a charter city to increase its levy over a charter levy limit for aid and credit cuts imposed by the Legislature. The exemption is equal to the special levy authorizations listed in state law, which allows for replacement of unalloted or legislatively reduced LGA. This change is effective for charter city property tax levies payable in calendar year 2011 and thereafter (Minn. Stat. 275.75). Below is the historical limits as imposed by the legislature City of Fridley FiscalUnemploymentPersonal YearPopulationRateIncome 199528,2043.2%$17,642 199628,2673.4%$18,672 199728,4192.6%$20,808 199828,3352.1%$22,405 199928,6232.3%$24,113 200027,4492.8%$25,357 200127,8543.6%$25,995 200227,8774.4%$28,324 200327,4604.3%$22,687 200427,4805.0%$25,169 200527,0885.0%$25,682 200626,6794.6%$26,387 200726,6034.8%$26,792 200826,4595.7%$26,792 200926,4227.9%$26,045 201027,2087.3%$27,350 201127,5155.5%$27,095 201227,5915.6%$27,172 201327,7854.4%$27,862 201427,9524.2%$25,773 201528,0393.9%$26,185 City of Fridley Historical Data Estimated Market City Tax Capacity Value % changeRate% change 1983776,074,092 1984802,180,0003% 1985807,910,5001% 1986839,392,0004% 1987879,498,6005% 1988907,274,9003% 1989941,136,6004% 1990998,231,5006% 19911,002,812,9000% 19921,057,532,0005% 19931,064,099,2001% 19941,068,474,2000% 19951,090,023,9022%16.098 19961,120,412,0653%16.5653% 19971,152,674,7003%15.242-8% 19981,274,348,50011%17.11912% 19991,293,664,3002%18.3267% 20001,335,542,9003%17.07-7% 20011,518,347,80014%16.35-4% 20021,688,141,10011%29.90683% 20031,958,021,10016%28.616-4% 20042,149,055,10010%30.2486% 20052,278,619,3006%33.56511% 20062,469,670,1008%31.941-5% 20072,616,727,3006%31.349-2% 20082,701,388,8003%30.324-3% 20092,698,943,7000%28.64-6% 20102,561,173,300-5%32.25813% 20112,352,567,900-8%36.48613% 20122,278,659,000-3%39.6159% 20132,057,500,500-10%47.36220% 20141,948,580,100-5%48.5773% 20152,146,063,30010%43.508-10% 20162,207,363,4003%44.963% 20172,417,228,60010%48.1697% Each year, cities certify a property tax levy for the following year in dollars, not at a specific rate. The council sets a tax levy amount high enough to provide money for the upcoming budget year and include any ongoing debt payments and any prior year liabilities 2017 2017 2016 2016 2015 2015 2011 Levy includes unalloted LGA up to State levy limit (such as short-term borrowing). This dollar amount is converted into a complex rate and applied to taxable properties within city boundaries. The City receives this levy in the form of property tax revenue from the County. 2014 2014 2013 2013 2012 2012 2011 Springbrook Nature Center Market Value Ref Levy shifted from Operational Levy & 2011 Special legislation allowing Charter Cities with restriction to levy for unalloted LGA 2010 2010 2009 2009 2008Debt Levy 2008 % Change in Operational Levy Springbrook Nature Center 2007 Historical Levy City of Fridley 2007 2006 2006 Operational Levy 2005 In 2005 2005 2004 2004 2003 2003 2002 2001 2002 2000 2001 1999 2000 1998 1999 1997 1998 1996 1997 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Levy: 25%20%15%10%5%0%-5% Special Revenue and Capital Improvement Fund balances are for special projects or have a dedicated use. Prior to undertaking a capital project, a city may increase reserves to help pay for a portion of the project, thus reducing the need to issue debt. Setting aside money over a period of time can be Cash flow needs, savings for projects, and reserves for unforeseen needs are three reasons why fund balances are important. Another reason is favorable bond ratings. Good bond ratings mean that a city will get lower interest rates when borrowing money. The bond rating is similar to an individual’s credit score and its impact on interest rates for mortgages and car loans. Wall Street (e.g., firms such as Moody’s) takes into account the financial well-being of a city when determining that city’s municipal bond rating. The city’s reserves are an important indicator of a city’s overall financial health; a The general fund balance acts as a rainy day fund to help the city cope with revenue shortfalls, unexpected expenditures, or emergencies. Given that cities only receive property taxes and state aids twice a year, the reserve funds can be critical for responding to unforeseen local needs. The City of 2017 22 Est 2016 22 Est 2015 25 2014 25 2013 24 2012 26 city is more likely to be given a higher bond rating if it is deemed to have a healthy city fund balance. A high rating for a city reflects the strength of the local economy and indicates its sound fiscal management. 2011 24 2010 23 2009 22 2008 22 2007 22 Fridley General Fund balance policy follows State Auditor guidelines with a goal to maintain 35% to 50% of the next years budgeted expenditures. 2006 23 an easier way to pay for a project, especially for smaller cities. City fund balances may include savings for a major project or purchase. 2005 24 2004 24 2003 26 2002 28 2001 31 Source: The League of Minnesota Cities & Office of the Minnesota State Auditor 2000 34 Special Revenue and Capital Improvement Fund Balance: 1999 31 1998 36 Fund balances and credit ratings: 1997 37 General Fund Balance: 1996 39 1995199619971998199920002001200220032004200520062007200820092010201120122013201420152016 Balance Fund 50% Balance Capital Fridley Working Fund of General City 35% Capital Working 10,000,000 8,000,0006,000,0004,000,0002,000,000 Median Fiscal Disp School Value 2017 Total Net CountyCityDistrictHome Taxes Recipient HennepinBrooklyn Park281190,900$3,215Yes RamseyRoseville621226,800$3,211No HennepinMinneapolis1205,500$3,163No RamseyNew Brighton621226,600$3,135Yes HennepinCrystal281166,000$2,850Yes HennepinBrooklyn Center281150,000$2,719Yes RamseyMounds View621184,350$2,536Yes AnokaSpring Lake Park16167,100$2,291Yes AnokaFridley14161,600$2,270No AnokaFridley16161,600$2,162No AnokaBlaine11185,200$1,991Yes AnokaColumbia Heights13149,600$1,949Yes AnokaFridley11161,600$1,904No AnokaFridley13161,600$1,903No AnokaCoon Rapids11163,400$1,848Yes AnokaAnoka11166,600$1,827Yes Source: Star Tribune 11/11/16 & League of Minnesota Cities ViewMinneapolisFridley increase Fridley in in taxes located $16 in property a $171,000 inwere results it homesif at Communites less FiscalDisparities valued $150 BrightonMounds valued home Heights about median A Surrounding pay 2017, Example: Columbia Fridley would the ParkNew For to of RapidsBrooklyn Disparities Fiscal ParkCoon of Benefit Lake CenterSpring Net Brooklyn Columbia Heights 25%20%15%10% 5%0%5% /źƷǤ ЋЉЊЍ CƩğƓĭŷźƭĻ υ /ƚƌƌĻĭƷĻķ Dğƭ ΛΉbΜ 9ƌĻĭƷƩźĭ ΛΉbΜ {ƦƩźƓŭ \[ğƉĻ tğƩƉ ЊВЊЍЎΫ .ƩƚƚƉƌǤƓ tğƩƉ υЉΫΫ .ƩƚƚƉƌǤƓ /ĻƓƷĻƩ υЏЍАͲЉАЊ b b /ƚƌǒƒĬźğ IĻźŭŷƷƭ υЊВЊͲЋАБ bĻǞ .ƩźŭŷƷƚƓ υААЍͲЉЍЌ aƚǒƓķƭ źĻǞ υБЉЉͲЍЉЋ /ƚƚƓ wğƦźķƭ υЍͲЋЉАͲЏЋЍ aźƓƓĻğƦƚƌźƭ υЌЌͲЎЌЉͲАВВ b b CƩźķƌĻǤ υЋАЊͲБЏБ ΫƚƷĻķ źƓ ŅğǝƚƩ ƚŅ źƒƦƌĻƒĻƓƷźƓŭ Њі ŅƩğƓĭŷźƭĻ ŅĻĻƭ ƚƓ ŭğƭ ğƓķ ĻƌĻĭƷƩźĭ źƓ WğƓ͵ ЋЉЊЎ ΫΫ .ĻŭğƓ ĭƚƌƌĻĭƷźƓŭ ŅƩğƓĭŷźƭĻ ŅĻĻƭ ƚƓ ǒƷźƌźƷźĻƭ źƓ ağǤ ƚŅ ЋЉЊЏ ΛƭǒƓƭĻƷ ƚŅ 5Ļĭ͵ ЌЊ ЋЉЋБΜ Ʒ ĬğƭƉĻƷ ƚŅ ĭƚƓƭǒƒĻƩ ŷĻ /ƚƓƭǒƒĻƩ tƩźĭĻ LƓķĻǣ Λ/tLΜ źƭ ğ ƒĻğƭǒƩĻ ƚŅ ƷŷĻ ğǝĻƩğŭĻ ĭŷğƓŭĻ ƚǝĻƩ ƷźƒĻ źƓ ƷŷĻ ƦƩźĭĻƭ Ʀğźķ ĬǤ ǒƩĬğƓ ĭƚƓƭǒƒĻƩƭ ŅƚƩ ğ ƒğƩƉĻ .ǒƩĻğǒ ƚŅ \[ğĬƚƩ {ƷğƷźƭƷźĭƭ ŭƚƚķƭ ğƓķ ƭĻƩǝźĭĻƭ͵ {ƚǒƩĭĻƭʹ local for state and constant dollar GDP to domestic product (GDP) Analysis current dollar gross inflation. Economic of effects Bureau of the ratio of account for the & Cities Price Deflator is Minnesota to used League of is Implicit ratio governments. The This The Definition: Sources: County is designed to show the effects of inflation on the cost of providing municipal services. t basket of consumer y compiled data to The MCI draws on the monthly statistical data collected by the U.S. Departments of Commerce and Labor as well as independentl The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a marke osite cost picture for the municipal budget officer or operating department manager. American City & County and the Bureau of Labor Statistics The Municipal Cost Index developed by American City & goods and services. project a comp ƚǒƩĭĻƭʹ { Bloomington metro - St. Paul - Minneapolis e The market value of goods and services produced by labor and property in th Bureau of Economic Analysis: U.S. Department of Commerce Definition: {ƚǒƩĭĻʹ area. rvices that are included in GDP This is a measure of state and local government spending on goods and se Bureau of Economic Analysis: U.S. Department of Commerce 5ĻŅźƓźƷźƚƓʹ {ƚǒƩĭĻƭʹ ŅƚƩƷŷĭƚƒźƓŭ Ļ ŅƚƩ Ʒŷ Ļƭ ǤĻğƩƌǤ źƓĭƩĻğƭĻ ĬǒķŭĻƷ ŅƚƩ ğƓķ ƦƩƚǝźķĻķ Ʒƚ ğƌƌ ƓƚƓΏǒƓźƚƓ ĻƒƦƌƚǤĻ ƒĻğƭǒƩĻ͵ ğƩǤ ƷŷğƓ ğƓ źƓŅƌğƷźƚƓ ƦƚƦǒƌğƷźƚƓ Ļ Ʃ ƩĻŅĻƩĻƓĭ ƩğƷŷĻ źǝĻ Ļ ĭƚƒƦĻƷźƷ ĭƚƓƭǒƒƦƷźƚƓ ĬǤ Ʒŷ ğŭĻƭ ŷĻƭĻ ƦĻƩĭĻƓƷğŭĻƭ ğƩĻ ƷǤƦźĭğƌƌǤ ĬğƭĻķ ǒƦƚƓ ƉĻĻƦźƓŭ Ǟ Ļ ƦĻƩĭĻƓƷ ĭŷğƓŭĻ ƚŅ Ʒŷ Ʃ ğƓķ ƭĻƩǝźĭĻƭ ƦǒƩĭŷğƭĻķ Ņƚ Ļ .ǒƩĻğǒ ƚŅ \[ğĬƚƩ {ƷğƷźƭƷźĭƭ Ʒŷ źƭ ƭğƌğƩǤ źƓĭƩĻğƭĻ ƭ ŭƚƚķ ğƌƌ ƭ ƩĻƦƩĻƭĻƓƷ ƷĻķ ŷĻ ĬǒķŭĻ {ƚǒƩĭĻƭʹ L /t ǤĻğƩ͵ ŷĻ Statutory City Fridley Charter LEVY Is levy limit in effect every year?No, in general, levy limits are Yes. only imposed when there is a trigger such as an increase in *and if applicable, any statutory state aid. This is to help levy limit. stabilize property tax increases. How is the limit calculated?The Legislature determines how The Fridley Charter calculates they will calculate the limit on consumer inflation. based on current conditions and trends. In recent history, the local government levy limit base was increased for growth of 3 factors, inflation, new households and new commercial industrial properties. What index is used?The 2014 levy limit inflation US Department of Labor, factor used the Implicit Price Bureau of Labor Statistics, Deflator (IPD) for state and local Consumer Price Index for all government purchases, but only Urban Consumers in the to a maximum of 3.9%. It then Minneapolis, St Paul looked at the other two growth metropolitan area but not to factors related to new exceed 5%. development. For example, the 2017 levy is based on the % change in CPI for the years 2014 & 2015. Is debt excluded from limit?YesYes, with the exception of lease revenue bonds payments and other lease to own agreements –not full faith in credit Are there any exceptions to levy When imposed, the State Yes, in 2011 state law was limit? determines each Cities levy permanently extended to limit. The limit calculation include Charter cities with levy varies each year depending on limits an exemption from those the measures and exceptions limits in the event LGA is included in the formula. unalloted or reduced. Is anything excluded from levy Debt on capital projects, Debt on capital projects. limit calculation? increases in police and fire salary and benefits, increases in public employee pension plans, recouping LGA or other aid after levies have been set for the year… DEBT How is the debt limit The overall net debt limit is 3% Total debt cannot exceed 10% calculated? of the estimated market value. of the City’s taxable market It excludes revenue bonds and value. special assessment bonds which have their own funding sources. In addition, depending on the type of debt, there may be limits specific to that type of debt (example, total CIP bond payments in any given year cannot exceed .16% of total estimated market value) Council to approve debt Majority (3/5) 4/5 vote issuance by? Exceptions: Street Reconstruction Bonds – vote of all members present at meeting Improvement Bonds – 4/5 vote BUDGET& FINANCIAL REPORTING Deadline for presentation of June 30 th April 1 st financial reports for prior year? (audit has not been completed) Proposed budget publication Public meeting required after Publication twice in paper prior th requirements? November 24not to start to November 15th before 6pm, notification required on every parcel specific proposed tax notice Adopted budgetpublication Statute 471.6965 has specific Copy of Resolution for the requirements? format for adopted budget to adopted budget to be published be published no later than 1/30 in local paper of the budget year FUND ACCOUNTING Fund types consistent with YesCharter refers to Bond Funds, GASB and State Auditor Special Assessment Funds, Uniform Chart of Accounts? Permanent Improvement Revolving Funds, Suspense Fund FEES How is a new fee with a direct Ordinance change, public Voter approval obligation to all property hearing, majority vote of council owners implemented? Are there limitations on No, fees should be designed to Same index as levy limitation increasing an existing fee? cover costs of service. No (change in CPI) mandates on fee limitation. How is a franchise fee Ordinance change, public Voter approval implemented (gas, electric)? hearing, majority vote of council ), Parks and Recreation fees, charged beyond the restriction must be approved by the They are structural and in place each year regardless of products, and civil or criminal fines or other charges are copying charges, sales of municipal liquor store Tax levies are restricted to 5% or the CPI, whichever is Tax levy limitations are not based on property values not subject fee restrictions. Any taxes levied or fees /ǒƩƩĻƓƷ ƌğƓŭǒğŭĻ (sewer via special election. The words removed from Section A., and Ordinance No. 1244, adopted lower. Utility charges 7.02.3 of the Charter, passed Jun. 25 amended Section was added to Section B. circumstance ЋЉЉА voters. - photo This language also added that the levy could not the limits set forth in subsection 1, shall require recommendation to the Charter Commission to Section 7.02 as a result of the election, a citizen Commission recommended the amendment to Ordinance No. 1152, adopted Apr. 9, to amend . Both items were a part of the City Council. The language added stated, voter approval as stipulated in subsection 2. amend the petition language. The Charter be increased in excess of the CPI or 5%, committee was formed which made a ЋЉЉЊ the original petition in 200. whichever is lower Section 7.02. On Sept. 11, the City Council Aug. 21, a petition was received to amend passed a resolution for the question to be placed on the General Election. On Nov. 7, the measure passed. ЋЉЉЉ petition was successful and the ordinance A referendum petition was circulated to recall an ordinance approving franchise fees on gas and electric utilities. The did not take effect. ЊВВВ personal property\] for general City purposes shall not prior year tax levy increased by an inflationary index defined by the U.S. Department of Labor, Bureau of exceed in dollars, a tax levy that is greater than the 7.02 was amended changing the limit from the mill Commission and after two public hearings, Section recommendation from the Charter property within the city for general city purposes assessed valuation of the property taxable in the amount of taxes levied against real and personal increase, so does the ability for the city to levy a if property values shall not exceed 30 mills on each dollar of the Restriction in place each year regardless of ЊВВА Based on property values via higher dollar amount Sept. 8, circumstance ЊВЎА