HomeMy WebLinkAbout2017-01-09 City Council Workshop PacketPPLLEEAASSEE NNOOTTEE SSTTAARRTT TTIIMMEE
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
6:00 P.M. Monday, January 9, 2017
City Hall, Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
None
E. NEW BUSINESS
1. Communications Update
F. ADJOURNMENT
RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY
Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials,
staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a
reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will
follow these principles:
Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak
for the group or for citizens in the form of a petition.
Show respect during comments and/or discussions, listen actively and do not interrupt or talk am ongst each other.
Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public.
Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive.
THIS PAGE IS INTENTIONALLY LEFT BLANK
MEMORANDUM
TO: Melinda Coleman, City Manager
FROM: George Fairbanks, Communications Manager
DATE: January 3, 2017
SUBJECT: Communications Update
Introduction
Staff has been asked to present a year end update on 2016 communications activities and to
review the 2017 budget. In addition, because this is the Communications Department’s first
budget cycle, staff would like to discuss current and future communications projects, plans, and
needs.
We will also review possible options for reducing Maplewood cable subscriber’s PEG fees. This
was a goal that was discussed when the City left the Ramsey Washington Suburban Cable
Commission at the end of 2015. Reducing the PEG fees will require cuts or absorption into
other budget areas associated with the City’s General Fund.
Background
The Communications Department has been tasked with helping the City reach residents and
business owners through a combination of communication mediums. That work began in
earnest in September 2016 when the Communications Department was first staffed at its
current level.
Budget Impact
We are seeking input from the Council in determining how best to adapt the Communications
Department’s budget and fiscal priorities.
Recommendations
No formal Council action is requested at this time, however, we are seeking direction to proceed
with the Franchise Renewal Process with Comcast and CenturyLink.
Attachments
1. Communications Budget PowerPoint
2. Communications Budget Scenarios
E1
Workshop Packet Page Number 1 of 22
Communications Update
January - 2017
E1, Attachment 1Workshop Packet Page Number 2 of 22
Coordinated Communication Timeline
Coordinated Communication -Key Dates
•Conceptualized –Summer, 2015
•Action Plan Presented –Fall, 2015
•Begin Hiring Staff –Summer, 2016
•Hired Manager –Fall, 2016
•First full Budget Cycle –January, 2017 E1, Attachment 1Workshop Packet Page Number 3 of 22
Review and Background on Franchise and PEG fees
PEG Fees Explained
•To support PEG (Public, Education & Government) programming
•Funds paid in quarterly payments
•Franchisee collects funds through cable bill line items
•PEG fees are based on the grant amount divided by the number of subscribers.
Example –Franchisee (CenturyLink/Comcast) grants the Franchisor $400,000 annually with an estimated 8,000 subscribers$400,000 (PEG Grant)/$8,000 (Subscribers)/12 (monthly bill) = $4.16 PEG Fee E1, Attachment 1Workshop Packet Page Number 4 of 22
Review and Background on Franchise and PEG fees
Franchise Fees Explained
•No restrictions on usage
•Funds paid in quarterly payments
•Franchisee collects funds through cable bill line items
•Franchise fees are calculated from the subscribers total amount of cable services. Current fee rate is 5%.
Example –if subscriber pays $100 for cable services, franchise fee = $5 E1, Attachment 1Workshop Packet Page Number 5 of 22
NSCC rates raised from $4.15 in 2015 (increased by $1.85)
RWSCC rates raised from $3.94 in 2015 (increased by $1.68)
How do our fee’s compare to other communities?
Previously deposited
into the General Fund
E1, Attachment 1Workshop Packet Page Number 6 of 22
E1, Attachment 1Workshop Packet Page Number 7 of 22
Communication Division Program Areas
Print Editions
•Maplewood Living Changes
•An upbeat, promotion tool
•Build connections with businesses
•Promote Economic Development
•Extend stories to multiple platforms
•Greater need for multilingual content
•Annual Documents
•Review and recommend changes to update City documents with a clean, professional look
•Special Run One-Off Documents
•Produce limited run documents for staff, Council and Commissions E1, Attachment 1Workshop Packet Page Number 8 of 22
Communication Division Program Areas
Digital and Social Media
•www.MaplewoodMN.gov
•Content management
•CivicSend & Constant Contact
•Social media specialists
•Concentrated social media feeds
•Digital Signage &
Electronic Billboards E1, Attachment 1Workshop Packet Page Number 9 of 22
Communication Division Program Areas
Video Media
•Master Control updates
•Webcast studio
•Gathering content for Maplewood Channel
•Original Programming
•Semi-Monthly Shows
•Special Events
•Channel Lineup E1, Attachment 1Workshop Packet Page Number 10 of 22
Changing the way Communications is Funded
E1, Attachment 1Workshop Packet Page Number 11 of 22
Changing the way Communications is Funded
E1, Attachment 1Workshop Packet Page Number 12 of 22
2017 Budget
Personnel Services
$270,184
32%
Commodities
$62,125
7%
Contractual Services
$377,833
45%
Transfer Out
$70,000
8%
Cash Reserve
$66,858
8%
Personnel Services Commodities Contractual Services Transfer Out Cash Reserve
Franchise Fees
$432,000
P.E.G Fees
$394,000
Other
$21,000
Cash Reserves –funding source for future Equipment Improvements in Council Chamber E1, Attachment 1Workshop Packet Page Number 13 of 22
Fees for Service and Contractual Obligation for Communications
E1, Attachment 1Workshop Packet Page Number 14 of 22
Global Budget Assumptions
Assumptions for all Scenarios
•1% reduction in subscribers per year beginning in 2019, based on trend
•2% inflation in expenditures in years 2018-2020; 3% in 2021-2027
•Includes advertising revenue for Maplewood Living
•$300,000 transfer to General Fund eliminated, except for $70,000 in 2017
•Assumes $25,000 transfer out to debt service fund in years 2019-2028 for Council Chamber technology upgrades.
City of Maplewood
Communications Fund Cash Flow Analysis
Current Scenario 2%2% 2% 3% 3% 3% 3% 3%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Estimated Budget Projected Projected Projected Projected Projected Projected Projected Projected
Operating Revenues
Franchise Fees 432,000 432,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
PEG Fees 394,000 394,000 375,000 371,250 367,538 363,862 360,224 356,621 353,055 349,525
Investment income 2,500 6,000 6,000 6,000 6,000 6,000 5,000 4,000 2,000 1,000
Miscellaneous revenues - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Total Operating Revenues 828,500 847,000 821,000 817,250 813,538 809,862 805,224 800,621 795,055 790,525
Operating Expenses
Personnel 79,000 270,184 275,588 281,099 286,721 295,323 304,183 313,308 322,707 332,389
Materials & supplies 22,000 62,125 63,368 64,635 65,928 67,905 69,943 72,041 74,202 76,428
Contractual services 270,300 377,833 385,390 393,097 400,959 412,988 425,378 438,139 451,283 464,822
Capital Outlay 30,000 - 25,000 - - 30,000 150,000 40,000 15,000 -
Total Operating Expenses 401,300 710,142 749,345 738,832 753,608 806,217 949,503 863,488 863,193 873,639
Operating income (loss)427,200 136,858 71,655 78,418 59,929 3,646 (144,280) (62,867) (68,138) (83,114)
Capital Conributions from Other Funds - - - - - - - - - -
Transfers In - - - - - - - - - -
Transfers Out - (70,000) - (28,000) (28,000) (28,000) (28,000) (28,000) (28,000) (28,000)
Change in Cash Position 427,200 66,858 71,655 50,418 31,929 (24,354) (172,280) (90,867) (96,138) (111,114)
Cash Balance December 31 - 427,200 494,058 565,713 616,131 648,061 623,706 451,426 360,559 264,422
Cash Balance December 31 427,200 494,058 565,713 616,131 648,061 623,706 451,426 360,559 264,422 153,308
Fund Balance % of Expenditures 106.45% 69.57% 75.49% 83.39% 85.99% 77.36% 47.54% 41.76% 30.63% 17.55%
Notes:
1. Assumes 1% reduction in subscribers per year beginning in 2019
2. Assumes 2% inflation in years 2018 - 2020; 3% in 2021 - 2027
3. Assumes advertising revenue for Maplewood Living
4. Assumes $28,000 transfer out to debt services funds in years 2019-2028 for Council Chambers remodel.
Inflation Factor Expenditures
E1, Attachment 1Workshop Packet Page Number 15 of 22
Communications Budget Forecast –$1 Reduction in PEG Fees
•Assumes $25,000 transfer out to debt service fund inyears 2019-2028 for Council Chambers technologyimprovements.
•Assumes $1 reduction in PEG fees in 2018
Projected Outcome:
•2018 –Operating loss
•2021 -Insufficient cash flow position
•2022 -Negative cash position E1, Attachment 1Workshop Packet Page Number 16 of 22
Communications Budget Forecast –$1 Reduction in PEG Fees, 20% Salaries General Fund, $50K Permanent Budget Reductions
•Assumes $25,000 transfer out to debt service fund in years 2019-2028 for Council Chamber technology improvements.
•Assumes $1 reduction in PEG fees in 2018
•Assumes 20% of salaries paid from General Fund beginning in 2018.
•Assumes $300,000 transfer to General Fund eliminated, except for $70,000 in 2017.
•Assumes $50,000 cuts in contractual services.
•Explore the possibility of expanding digital only Maplewood Living subscriptions to reduce printing and postage costs.
Projected Outcome:
•2022 –Operating loss
•2026 -Insufficient cash flow position E1, Attachment 1Workshop Packet Page Number 17 of 22
Franchise Renewal – 1
st Quarter 2017
Talking Points with Comcast
•PEG fee reduction
•Senior Discount
•Number of channels
At this time Maplewood’s Communications wouldliketoretainthreechannelsonspectrum.
If there is a need in the future to expand our current broadcast programming, we will have these additional channels to use. Our current thought is, if we relinquish the right to these channels, it might be difficult to get them back if the need should arise.E1, Attachment 1Workshop Packet Page Number 18 of 22
Questions
E1, Attachment 1Workshop Packet Page Number 19 of 22
City of Maplewood Fund 222
Communications Fund Cash Flow Analysis
Current Scenario 2%2%2%3%3%3%3%3%3%3%
2015 *2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
General Fund Estimated Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Operating Revenues
Franchise Fees 299,438 432,000 432,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
PEG Fees - 394,000 394,000 375,000 371,250 367,538 363,862 360,224 356,621 353,055 349,525 346,029 342,569
Investment income - 2,500 6,000 6,000 6,000 6,000 6,000 5,000 4,000 2,000 1,000 - -
Miscellaneous revenues - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Total Operating Revenues 299,438 828,500 847,000 821,000 817,250 813,538 809,862 805,224 800,621 795,055 790,525 786,029 782,569
Operating Expenses
Personnel - 79,000 270,184 275,588 281,099 286,721 295,323 304,183 313,308 322,707 332,389 342,360 352,631
Materials & supplies 22,000 62,125 63,368 64,635 65,928 67,905 69,943 72,041 74,202 76,428 78,721 81,083
Contractual services 170,000 270,300 377,833 385,390 393,097 400,959 412,988 425,378 438,139 451,283 464,822 478,766 493,129
Capital Outlay 129,438 30,000 - 25,000 - - 30,000 150,000 40,000 15,000 - 30,000 30,900
Total Operating Expenses 299,438 401,300 710,142 749,345 738,832 753,608 806,217 949,503 863,488 863,193 873,639 929,848 957,743
Operating income (loss)- 427,200 136,858 71,655 78,418 59,929 3,646 (144,280) (62,867) (68,138) (83,114) (143,819) (175,174)
Capital Conributions from Other Funds - - - - - - - - - - - - -
Transfers In - - - - - - - - - - - - -
Transfers Out - - (70,000) - (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000)
Change in Cash Position - 427,200 66,858 71,655 53,418 34,929 (21,354) (169,280) (87,867) (93,138) (108,114) (168,819) (200,174)
Cash Balance December 31 - 427,200 494,058 565,713 619,131 654,061 632,706 463,426 375,559 282,422 174,308 5,489
Cash Balance December 31 427,200 494,058 565,713 619,131 654,061 632,706 463,426 375,559 282,422 174,308 5,489 (194,685)
Fund Balance % of Expenditures 106.45%69.57%75.49%83.80%86.79%78.48%48.81%43.49%32.72%19.95%0.59%-20.33%
Notes:
1. Assumes 1% reduction in subscribers per year beginning in 2019
2. Assumes 2% inflation in years 2018 - 2020; 3% in 2021 - 2027
3. Assumes advertising revenue for Maplewood Living
4. Assumes $25,000 transfer out to debt services funds in years 2019-2028 for Council Chambers technology.
5. Assumes $300,000 transfer to General Fund eliminated, except for $70,000 in 2017.
Inflation Factor Expenditures
E1, Attachment 2Workshop Packet Page Number 20 of 22
City of Maplewood Fund 222
Communications Fund Cash Flow Analysis
$1 Reduction PEG fees 2%2%2%3%3%3%3%3%3%3%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Estimated Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Operating Revenues
Franchise Fees 432,000 432,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
PEG Fees 394,000 394,000 275,000 272,250 269,528 266,832 264,164 261,522 258,907 256,318 253,755 251,217
Investment income 2,500 6,000 4,000 4,000 3,000 2,000 - - - - - -
Miscellaneous revenues - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Total Operating Revenues 828,500 847,000 719,000 716,250 712,528 708,832 704,164 701,522 698,907 696,318 693,755 691,217
Operating Expenses
Personnel 79,000 270,184 275,588 281,099 286,721 295,323 304,183 313,308 322,707 332,389 342,360 352,631
Materials & supplies 22,000 62,125 63,368 64,635 65,928 67,905 69,943 72,041 74,202 76,428 78,721 81,083
Contractual services 270,300 377,833 385,390 393,097 400,959 412,988 425,378 438,139 451,283 464,822 478,766 493,129
Capital Outlay 30,000 - 25,000 - - 30,000 150,000 40,000 15,000 - 30,000 30,900
Total Operating Expenses 401,300 710,142 749,345 738,832 753,608 806,217 949,503 863,488 863,193 873,639 929,848 957,743
Operating income (loss)427,200 136,858 (30,345) (22,582) (41,081) (97,384) (245,339) (161,966) (164,286) (177,321) (236,093) (266,526)
Capital Conributions from Other Funds - - - - - - - - - - - -
Transfers In - - - - - - - - - - - -
Transfers Out - (70,000) - (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000)
Change in Cash Position 427,200 66,858 (30,345) (47,582) (66,081) (122,384) (270,339) (186,966) (189,286) (202,321) (261,093) (291,526)
Cash Balance December 31 - 427,200 494,058 463,713 416,131 350,051 227,666 (42,673) (229,639) (418,925) (621,246) (882,339)
Cash Balance December 31 427,200 494,058 463,713 416,131 350,051 227,666 (42,673) (229,639) (418,925) (621,246) (882,339) (1,173,865)
Fund Balance % of Expenditures 106.45%69.57%61.88%56.32%46.45%28.24%-4.49%-26.59%-48.53%-71.11%-94.89%-122.57%
Notes:
1. Assumes 1% reduction in subscribers per year beginning in 2019 5. Assumes $25,000 transfer out to debt services funds in years 2019-2028 for Council Chambers technology.
2. Assumes 2% inflation in years 2018 - 2020; 3% in 2021 - 2027 6. Assumes $300,000 transfer to General Fund eliminated, except for $70,000 in 2017.
3. Assumes advertising revenue for Maplewood Living
4. Assumes $1 reduction in PEG fee in 2018
Inflation Factor Expenditures
E1, Attachment 2Workshop Packet Page Number 21 of 22
City of Maplewood Fund 222
Communications Fund Cash Flow Analysis
$1 Reduction PEG fees, 20% Salaries General Fund 2%2%2%3%3%3%3%3%3%3%
$50K Permanent Program Cuts 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Estimated Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Operating Revenues
Franchise Fees 432,000 432,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000 425,000
PEG Fees 394,000 394,000 275,000 272,250 269,528 266,832 264,164 261,522 258,907 256,318 253,755 251,217
Investment income 2,500 6,000 6,000 7,000 7,000 8,000 7,000 6,000 6,000 6,000 5,000 4,000
Miscellaneous revenues - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Total Operating Revenues 828,500 847,000 721,000 719,250 716,528 714,832 711,164 707,522 704,907 702,318 698,755 695,217
Operating Expenses
Personnel 79,000 270,184 220,470 224,880 229,377 236,258 243,346 250,647 258,166 265,911 273,888 282,105
Materials & supplies 22,000 62,125 63,368 64,635 65,928 67,905 69,943 72,041 74,202 76,428 78,721 81,083
Contractual services 270,300 377,833 335,390 342,097 348,939 359,408 370,190 381,296 392,734 404,516 416,652 429,151
Capital Outlay 30,000 - 25,000 - - 30,000 150,000 40,000 15,000 - 30,000 30,900
Total Operating Expenses 401,300 710,142 644,227 631,612 644,244 693,571 833,479 743,983 740,102 746,855 799,261 823,239
Operating income (loss)427,200 136,858 76,773 87,638 72,283 21,261 (122,315) (36,461) (35,195) (44,537) (100,506) (128,022)
Capital Conributions from Other Funds - - - - - - - - - - - -
Transfers In - - - - - - - - - - - -
Transfers Out - (70,000) - (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000)
Change in Cash Position 427,200 66,858 76,773 62,638 47,283 (3,739) (147,315) (61,461) (60,195) (69,537) (125,506) (153,022)
Cash Balance December 31 - 427,200 494,058 570,831 633,469 680,752 677,013 529,698 468,238 408,042 338,505 212,999
Cash Balance December 31 427,200 494,058 570,831 633,469 680,752 677,013 529,698 468,238 408,042 338,505 212,999 59,977
Fund Balance % of Expenditures 106.45%69.57%88.61%100.29%105.67%97.61%63.55%62.94%55.13%45.32%26.65%7.29%
Notes:
1. Assumes 1% reduction in subscribers per year beginning in 2019 5. Assumes $25,000 transfer out to debt services funds in years 2019-2028 for Council Chambers technology.
2. Assumes 2% inflation in years 2018 - 2020; 3% in 2021 - 2027 6. Assumes 20% of Salaries paid from General Fund beginning in 2018.
3. Assumes advertising revenue for Maplewood Living 7. Assumes $50,000 cuts in contractual services.
4. Assumes $1 reduction in PEG fee in 2018 8. Assumes $300,000 transfer to General Fund eliminated, except for $70,000 in 2017.
Inflation Factor Expenditures
E1, Attachment 2Workshop Packet Page Number 22 of 22