HomeMy WebLinkAbout2017-07-10 City Council Workshop PacketPPLLEEAASSEE NNOOTTEE SSTTAARRTT TTIIMMEE
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 amongst 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.
AGENDA
MAPLEWOOD CITY COUNCIL
MANAGER WORKSHOP
5:30 P.M. Monday, July 10, 2017
City Hall, Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. UNFINISHED BUSINESS
None
E. NEW BUSINESS
1. Discussion of Gilbert Mancheski Property Located at 2494 Harvester Avenue
a. Intent to Close Meeting (§13D.05 subd. 3b)
2. Continue Discussion of 2018-2022 CIP and Financial Policies
3. Review of 2018 Budget Process and Calendar
F. ADJOURNMENT
THIS PAGE IS INTENTIONALLY LEFT BLANK
MEMORANDUM
TO: Melinda Coleman, City Manager
FROM: Ron Batty, City Attorney
DuWayne Konewko, Environmental and Economic Development Director
DATE: July 5, 2017
SUBJECT: Discussion of Gilbert Mancheski Property Located at 2494 Harvester Avenue
a. Intent to Close Meeting (§13D.05 subd. 3b)
Introduction/Background
The purpose of this agenda item is to consider litigation involving the property at 2494 Harvester
Ave owned by Mr. Mancheski.
Minnesota State Statute 13D.05 subd. 3b allows a public body to close a meeting if the closure
is expressly authorized by statute or permitted by the attorney-client privilege.
Recommendation
Before the meeting is closed, the council must state on the record the specific grounds
permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is
recommended the City Council introduce the following motion:
Pursuant to Minnesota Statutes Section 13D.05,Subd. 3b, I hereby move to close the
regular meeting and go into closed session to consider litigation involving the property
at 2494 Harvester Avenue owned by Gilbert Mancheski.
Attachments
Additional information will be provided at the meeting.
E1
Workshop Packet Page Number 1 of 43
E2
MEMORANDUM
TO: Melinda Coleman, City Manager
FROM: Ellen Paulseth, Finance Director
DATE: July 10, 2017
SUBJECT: Continue Discussion of 2018-2022 CIP and Financial Policies
Introduction
The Capital Improvement Plan is an annually prepared document that coordinates the planning,
financing and timing of major equipment purchases and construction projects. A public hearing
will be held at the Planning Commission meeting on July 18th at 7:00 PM. The final CIP will be
adopted with the 2018 budget in December. Adopting the CIP does not commit the council to
the proposed projects.
Outstanding Debt
Projects in the CIP have been carefully scrutinized and prioritized by the City Manager, Finance
Director, and Senior Management Team to achieve the City Council’s overall goal of reducing the
outstanding debt burden. An analysis of outstanding debt since 2012, projected through 2027 to
include projects in the 10-year CIP, is shown below:
Historical Data
Projected Data
Workshop Packet Page Number 2 of 43
E2
Careful management of CIP projects will result in a consistent downward trend in the amount of
outstanding debt, as depicted in the chart below:
Debt Policy
The City’s proposed new debt policy maintains some of the existing safeguards and establishes
more stringent guidelines for the issuance of debt. It also establishes debt limitations and some
specific performance metrics to quantify the desired level of outstanding debt. The debt policy
is attached as Exhibit 1; however, the performance metrics are described below:
a. The City will strive to keep the total maturity length of general obligation
bonds below 20 years and structure the bonds to allow for retirement of at
least 50% of the principal within 2/3 of the term of the bond issue.
b.Bond rating categories shall be used as a means of assessing the City’s
financial condition. The City will strive to achieve and maintain a ratio of
governmental funds debt service to expenditures that will result in an
adequate, or better than adequate, debt and contingent liability profile rating
from the rating agencies.
c. The City will strive to limit the amount of net direct outstanding debt at or
below the range of $900 to $1,600 per capita.
Some of the performance metrics are expressed as a range, so that the City will not
immediately be out of compliance with its own policy. The above measures are common and
reasonable quantifications in the industry.
‐
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Net Direct Debt
Workshop Packet Page Number 3 of 43
E2
CIP Projects Impact on Outstanding Debt
The following projects in the five-year CIP period will impact the City’s outstanding debt burden:
Special Assessment debt is backed by special assessment revenue collected from property
owners. It does not require a tax levy. However, special assessment debt is still included in the
calculation of total outstanding debt and has an impact on the City’s bond rating. The same is
true of MSA bonds, which are backed by municipal state aid. The remainder of the bonds are
backed by a tax levy. All of the above debt will have an impact on the City’s outstanding debt
burden.
Reducing the amount of projected outstanding debt will require additional revenue sources or
the removal of projects from the proposed CIP. Consideration may also be given to the phasing
of the projects. This would mean delaying low priority projects until debt levels are in a range
acceptable to the Council.
2018‐2022 Capital Improvement Projects Financed with Debt
Economic Development
CD15.01 Gladstone Redevelopment 5,950,000 5,950,000
Fire Department
FD18.011 Fire Station #3 Hazelwood 400,000 400,000
FD18.012 Fire Station #2 Gladstone 700,000 700,000
Building Maintenance
MT17.05 1902 Building Mechanical 269,000 269,000
MT17.06 1902 Building Roof 410,000 410,000
MT18.01 City Hall Generator 69,000 69,000
MT18.02 1902 A/C Replacement 65,000 65,000
Police Department
PD18.060 Regional Firearms Range 800,000 800,000
Parks
PM07.010 Park Upgrades 520,000 520,000
PM11.020 Goodrich Park 350,000 350,000
PM16.001 Park Reinvestment ‐ Wakefield 3,600,000 3,600,000
Streets
PW09.08 Farrell/Ferndale Streets 3,128,300 838,700 3,967,000
PW09.10 Dennis McClelland Streets 2,857,500 1,010,500 3,868,000
PW12.02 Sterling Street Bridge 115,000 115,000
PW15.11 Ferndale/Ivy Streets 2,039,310 524,790 2,564,100
PW16.10 Mailland/Crestview Pavement 699,660 699,660
PW16.11 Schaller Area Pavement 793,500 793,500
PW16.12 Londin/Highpoint Streets 494,868 494,868
PW17.06 Southcrest/Ferndale Pavement 738,300 738,300
PW17.08 East Shore Drive Streets 2,563,400 693,400 3,256,800
PW18.01 Cope/McMenemy Streets 3,635,660 995,540 4,631,200
PW18.02 Gervais Area Pavement 1,030,133 1,030,133
Total New Debt 8,663,000 14,224,170 7,819,391 115,000 4,470,000 35,291,561
Project
ID Project Name CIP Bonds
Improvement
Bonds
Spec Asmt
Bonds MSA Bonds
Total New
Debt
Abatement
Bonds
Workshop Packet Page Number 4 of 43
E2
The City’s current debt profile includes rapid amortization of principal over the next ten years.
The amount of outstanding debt will decline despite the addition of the new CIP debt. The table
below illustrates the estimated impact of the new debt on the total amount of outstanding debt:
A debt reduction of 10%, or approximately $6M, over the next two years will require $6M in
current projects to be removed from the CIP. Estimated impact of the $6M reduction on the
amount of outstanding debt during the CIP period is as follows:
Recommendation
No action required at this time; however, staff will need clear direction on the 2018 projects.
They form the basis for the 2018 budget. While all projects included in the CIP are affordable in
our opinion, the Council may wish to accelerate the reduction in the amount of outstanding debt.
This will require a reprioritization of projects. Council members should consider the priority of
projects contained in the plan and which projects will be appropriated for the 2018 budget year.
Projects proposed for 2018 are highlighted below:
DEBT TRANSACTIONS
CURRENT YEAR AND NEXT TEN YEARS
Debt Less Escrow Net Debt
Year Debt Paid Outstanding Funds Outstanding
2016 Balance Forward 68,623,530 0 68,623,530
2017 7,370,000 (7,677,820) 68,315,710 (9,160,000) 59,155,710
2018 8,363,000 (15,364,230) 61,314,480 (1,225,000) 60,089,480
2019 5,840,000 (8,991,290) 58,163,190 0 58,163,190
2020 6,281,000 (7,093,030) 57,351,160 0 57,351,160
2021 3,621,000 (7,209,350) 53,762,810 0 53,762,810
2022 6,191,000 (6,819,730) 53,134,080 0 53,134,080
2023 2,535,000 (6,923,090) 48,745,990 0 48,745,990
2024 7,521,000 (6,260,000) 50,006,990 0 50,006,990
2025 2,712,000 (5,635,000) 47,083,990 0 47,083,990
2026 3,201,000 (5,620,000) 44,664,990 0 44,664,990
2027 4,753,000 (5,075,000) 44,342,990 0 44,342,990
New Debt Issued
Year
2017 59,155,720 59,155,720
2018 60,089,480 57,089,480
2019 58,163,190 52,163,190
2020 57,351,160 51,351,160
2021 53,762,810 47,762,810
2022 53,134,080 47,134,080
Estimated Net
Direct Debt
Estimated
Reduced Debt
Workshop Packet Page Number 5 of 43
E2
PROJECT DEPARTMENT PROJECT TITLE COST
Buildings
FD18.011 Fire Department Rehabilitation of Fire Station #3 Hazelwood $2,400,000
FD18.012 Fire Department Rehabilitation of Fire Station #2 Gladstone $2,100,000
PM18.01 Public Works Maplewood Nature Center Improvements $50,000
$4,550,000
Equipment
FD18.010 Fire Department Replacement of Police & Fire 800 MHz Radios $78,300
FD18.014 Fire Department Fire Fighting Turnout Gear 57,400
FD18.017 Fire Department Ambulance Replacement 250,000
PW15.05 Public Works Wood Chipper 70,000
PW16.04 Public Works Asphalt Hot Box 40,000
PD18.010 Police Squad Replacaements 216,300
PW13.03 Public Works Single Axle Plow Truck 220,000
PW15.03 Public Works One 1/2 - Ton Truck 22,000
$954,000
Park Improvements
PM07.010 Parks Park Upgrades to Existing Parks $100,000
PM08..060 Parks Open Space Improvements 110,000
PM14.020 Parks Harvest Park Upgrades 50,000
PM15.020 Parks EAB Ash Removal & Planting 100,000
PM15.430 Parks Wakefield Park Upgrades 250,000
PM16.001 Parks Park Maintenance & Reinvestment - Wakefield 1,600,000
PM18.02 Parks Edgerton Community Garden 50,000
$2,260,000
Street Improvements
PW09.08 Public Works Farrell/Ferndale Area Street Improvements $7,060,000
PW09.10 Public Works Dennis/McClelland Area Street Improvements 100,000
PW15.11 Public Works Ferndale/Ivy Street Improvements 100,000
PW16.10 Public Works Mailand/Crestview Forest Area Pavement 60,000
PW16.12 Public Works London/Highpoint Area Pavement 1,010,000
PW18.12 Public Works Roselawn & Edgerton Intersection Improvements 100,000
PW14.01 Public Works Pond Clean Out/Dredging Projects 100,000
PW03.21 Public Works Lift Station Upgrades 20,000
$8,550,000
Revevelopment
CD02.01 Community Dev Housing Replacaement Program 150,000
CD15.01 Community Dev Gladstone Area Redevelopment $2,000,000
$2,150,000
Total CIP Projects Year 2018 $18,464,000
Capital Improvement Projects Scheduled for 2018
Workshop Packet Page Number 6 of 43
E2
Attachments
1.PowerPoint
2.Draft Debt Policy
Workshop Packet Page Number 7 of 43
DebtJune 26, 2017E2, Attachment 1
Workshop Packet Page Number 8 of 43
Capital Improvement Plan Workshop Objectives•Priorities for Projects•Affirm 2018 Projects•Fire Station Project Delayed•Debt Guidelines and Policies•EUF fees•Franchise Fees1, E2, Attachment 1
Workshop Packet Page Number 9 of 43
2018-2022 Capital Improvement Plan TimelineJune 26, 2017 CIP WorkshopJuly 18, 2017 Planning Commission HearingJuly 24, 2017 City Council HearingDecember 11, 2017 Adoption with Final Budget
E2, Attachment 1
Workshop Packet Page Number 10 of 43
Purpose of the Capital Improvement PlanCapital Improvement Planning Document for 5 YearsDoes not authorize expendituresCouncil must authorize each item prior to spendingAdoption Required to Issue Debt to Finance theProjects, § M.S. 475.521
E2, Attachment 1
Workshop Packet Page Number 11 of 43
2018–2022 Capital Improvement PlanSummary of CIP Projects by CategoryCategory 2018 2019 2020 2021 2022 TotalBuildings4,550,000 881,000 269,000 265,000 469,000 6,434,000Equipment954,000 1,887,500 767,800 675,500 1,723,200 6,008,000Parks2,260,000 750,000 1,400,000 660,000 1,685,000 6,755,000Redevelopment2,150,000 2,750,000 1,350,000 0 150,000 6,400,000Streets8,550,000 7,405,000 13,760,000 22,720,000 8,250,000 60,685,000TOTAL18,464,000 13,673,500 17,546,800 24,320,500 12,277,200 86,282,000
E2, Attachment 1
Workshop Packet Page Number 12 of 43
2018-2022 Capital Improvement Plan Funding SourcesE2, Attachment 1
Workshop Packet Page Number 13 of 43
Historical and Projected Debt Analysis 2012-2027 with CIPE2, Attachment 1
Workshop Packet Page Number 14 of 43
Debt Projection with 2018-2027 Capital Improvement Plan*Assumes alternative financing of internal chargesDEBT TRANSACTIONSCURRENT YEAR AND NEXT TEN YEARSDebt Less Escrow Net DebtYear Debt Paid Outstanding Funds Outstanding2016 Balance Forward 68,623,530 0 68,623,5302017 7,370,000 (7,677,820) 68,315,710 (9,160,000) 59,155,7102018 8,363,000 (15,364,230) 61,314,480 (1,225,000) 60,089,4802019 5,840,000 (8,991,290) 58,163,190 0 58,163,1902020 6,281,000 (7,093,030) 57,351,160 0 57,351,1602021 3,621,000 (7,209,350) 53,762,810 0 53,762,8102022 6,191,000 (6,819,730) 53,134,080 0 53,134,0802023 2,535,000 (6,923,090) 48,745,990 0 48,745,9902024 7,521,000 (6,260,000) 50,006,990 0 50,006,9902025 2,712,000 (5,635,000) 47,083,990 0 47,083,9902026 3,201,000 (5,620,000) 44,664,990 0 44,664,9902027 4,753,000 (5,075,000) 44,342,990 0 44,342,990New Debt IssuedE2, Attachment 1
Workshop Packet Page Number 15 of 43
Debt per Capita with Capital Improvement Plan1,359 1,274 1,247 1,135 1,156 1,080 1,017 1,002 957 910 905 763 629 505 402 324 252 198 149 109 ‐200 400 600 800 1,000 1,200 1,400 1,600 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Net Direct Per Capita with and without CIPNet Direct Debt Per Capita with CIPExisting Net Direct Debt Per CapitaE2, Attachment 1
Workshop Packet Page Number 16 of 43
Standard and Poor’s Estimated Ratings165.8%157.3%152.1%139.8%135.4%121.8%122.5%113.1%105.2%102.4% ‐ 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,0002018 2019 2020 2021 2022 2023 2024 2025 2026 2027Ratio of Governmental Funds Net Direct Debt to Total Revenue with New CIP DebtNet Direct Outstanding DebtEstimated Total Gov't Funds RevenueWeakAdequateE2, Attachment 1
Workshop Packet Page Number 17 of 43
Standard and Poor’s Estimated Ratings0%10%20%30%40%50%60%70%80%90%100%2018 2019 2020 2021 2022 2023 2024 2025 2026 202722.0%24.2%23.0%17.7%17.0%15.9%15.1%14.6%12.3%12.4%Ratio of Governmental Funds Debt Service to Expenditures with New CIP DebtAnnual Net Debt Service with CIPEstimated Total Gov't Fund ExpendituresAdequateStrongE2, Attachment 1
Workshop Packet Page Number 18 of 43
Projects that Impact Debt in 2018-2022 CIPE2, Attachment 1
Workshop Packet Page Number 19 of 43
Impact of Reducing CIP by $6M (approximately 10% of outstanding debt)E2, Attachment 1
Workshop Packet Page Number 20 of 43
Major Projects for 2018•Fire Stations $ 4,500,000•Maplewood Nature Center 50,000•Equipment 954,000•Park Improvements 2,260,000•Street Improvements 8,550,000•Redevelopment 2,150,000Total$18,464,000E2, Attachment 1
Workshop Packet Page Number 21 of 43
Debt Policy Provisionsa. The City will strive to keep the total maturity length of general obligationbonds below 20 years and structure the bonds to allow for retirement of atleast 50% of the principal within 2/3 of the term of the bond issue.b. Bond rating categories shall be used as a means of assessing the City’sfinancial condition. The City will strive to achieve and maintain a ratio ofgovernmental funds debt service to expenditures that will result in anadequate, or better than adequate, debt and contingent liability profile ratingfrom the rating agencies.c. The City will strive to limit the amount of net direct outstanding debt at orbelow the range of $900 to $1,600 per capita.E2, Attachment 1
Workshop Packet Page Number 22 of 43
2014 Peer Comparisons10 MN cities had more debt: 10 MN cities had less debt but over $50M:Marshall92,725,000 Buffalo94,361,559 Lakeville113,595,000 Edina117,110,970 St. Cloud133,725,000 Duluth150,798,242 Moorhead227,755,000 Rochester329,680,273 Minneapolis 609,820,000 St. Paul626,231,047 Elk River 51,145,000 Northfield 51,276,000 Eden Prairie 51,840,000 Woodbury 53,745,000 Willmar 57,855,000 Mound 59,924,000 Bloomington 62,415,000 Bemidji 67,305,000 Golden Valley 74,874,000 Chaska 77,600,000 Maplewood 81,130,167E2, Attachment 1
Workshop Packet Page Number 23 of 43
Total Debt Per Capita 2014 Peers & NeighborsPopulation Peers:Neighbors:Maplewood2,041Little Canada 906Richfield1,163North St. Paul 1,751Inver Grove Heights 1,153Oakdale 930St. Louis Park928Oak Park Heights 3,163Apple Valley914Stillwater 1,595Roseville838White Bear Lake 172Andover797Brooklyn Center787Cottage Grove595Shakopee563Note: Includes refunding debt.E2, Attachment 1
Workshop Packet Page Number 24 of 43
Council ConsiderationsOutstanding Debt Goals2018 Capital Improvement ProjectsDebt PolicyIncrease EUF FeeImplement Franchise Fees increaseContinue to Find Efficiencies in Future BudgetsE2, Attachment 1
Workshop Packet Page Number 25 of 43
Questions?E2, Attachment 1
Workshop Packet Page Number 26 of 43
E2, Attachment 2
7. DEBT MANAGEMENT POLICY
A. Purpose
The purpose of the debt policy is to ensure that debt is used wisely and that
future financial flexibility remains relatively unconstrained. Debt is an important
mechanism to fund capital expenditures. It can reduce long-term costs due to
inflation, prevent lost opportunities, and equalize the costs of improvements to
present and future constituencies. Debt management is an integral part of the
financial management of the City. Adequate resources must be provided for
the repayment of debt, and the level of debt incurred by the City must be
effectively controlled to amounts that are manageable and within levels that will
maintain or enhance the City’s credit rating. A goal of debt management is to
stabilize the overall debt burden and future tax levy requirements to ensure that
issued debt can be repaid and prevent default on any municipal debt. A high
debt level places a financial burden on taxpayers and can create economic
problems for the community. The debt policies ensure that the City’s
outstanding debt does not weaken the City’s financial structure, provides
manageable limits on debt, and allows for the best possible credit rating.
B. Policy
Wise and prudent use of debt provides fiscal and service advantages. Overuse
of debt places a burden on the fiscal resources of the City and its taxpayers.
The following guidelines provide a framework and limit on debt utilization:
i. Conditions for Issuance
a. The City will confine long-term borrowing to capital
improvements, equipment, or projects that have a life of at
least five years and cannot be financed from current revenues.
b. Net general obligation debt will not exceed the statutory limit
of 3% of the estimated market value of taxable property in the
City, as required by M.S. § 475.53.
c. The City shall use a competitive bidding process for the sale
of debt unless the use of a negotiated process is warranted
due to adverse market conditions, timing requirements, or a
unique pledge or debt structure. The City will award
competitively issued debt on the true interest cost (TIC) basis.
d. The City should strongly consider market conditions (i.e.,
interest rates, construction market) when planning for the
issuance of debt. The City should consider issuing debt, rather
than paying cash, when interest rates are lower.
Workshop Packet Page Number 27 of 43
E2, Attachment 2
e. Debt should be structured in a manner that distributes costs
and benefits appropriately. Intergenerational equity aspects
should be considered when financing capital assets. The debt
payments should be distributed over the useful life of the asset.
f. Long-term forecasts should support the assumption that the
City will be able to repay the debt without causing financial
distress.
g. Interfund borrowing for periods of more than one year shall
only be undertaken for capital expenditures. A payment
schedule for the borrowed amounts shall be established by the
City Council. Interest charges for interfund loans utilizing tax
increment bonds will be in accordance with Minnesota
Statutes, §469.178, Subd 7.
ii. Restrictions on Debt Issuance
a. Where possible, the City will issue revenue (including general
obligation backed revenue) or other self-supporting type bonds
instead of general obligation bonds.
b. The City will not use long-term debt for current operations.
c. The City should not issue debt with a longer amortization
period than the life of the asset being financed.
d. When possible, the City should use pay-as-you-go financing
for equipment and other minor capital assets.
iii. Financial Limitations
d. The City will strive to keep the total maturity length of general
obligation bonds below 20 years and structure the bonds to
allow for retirement of at least 50% of the principal within 2/3
of the term of the bond issue.
e. Bond rating categories shall be used as a means of assessing
the City’s financial condition. The City will strive to achieve
and maintain a ratio of governmental funds debt service to
expenditures that will result in an adequate, or better than
adequate, debt and contingent liability profile rating from the
rating agencies.
f. The City will strive to limit the amount of net direct outstanding
debt at or below the range of $900 to $1,600 per capita.
Workshop Packet Page Number 28 of 43
E2, Attachment 2
g. The City will maintain regular communications with bond rating
agencies about its financial condition and will follow a policy of
full disclosure in every financial report and bond statement.
The City will comply with Securities and Exchange
Commission (SEC) reporting requirements.
h. The City is committed to providing continuing disclosure to
certain financial and operating data and material event notices
as required by Securities and Exchange Commission (SEC)
Rule 15c2-12. The Finance Department shall be responsible
for the preparation of all disclosure documents and releases
required under Rule 15c2-12.
i. When feasible, the City will use refunding mechanisms to
reduce interest costs and evaluate the use of debt reserves to
lower overall annual debt service. Refunding of outstanding
debt shall only be considered when present value savings of
at least 3.0% of the principal amount of the refunded bonds are
produced, according to Minnesota statutes. Savings from
refundings will be distributed evenly over the life of the
refunded bonds unless special circumstances warrant a
different savings structure.
j. Retirement funds will be examined annually to ensure
adequate balances and funding progress.
k. The City should maintain the highest credit rating possible.
iv. Professional Service Providers
a. Municipal financial advisors should be selected through a
process of evaluating formal proposals every 5 years.
Selection should be based on, but not limited to, experience
with the type, size, and structure of the bonds typically issued,
ability to commit sufficient time to accomplish necessary tasks,
and lack of potential conflicts of interest.
b. Proposals for bond counsel should be solicited and considered
on an occasional or as-needed basis. Consideration should
be given to experience with municipal debt, ability to commit
sufficient time to accomplish necessary tasks, and lack of
potential conflicts of interest.
c. The City should strategically maintain good relations with
rating agencies and a positive perception in the marketplace.
Workshop Packet Page Number 29 of 43
E2, Attachment 2
C. Conduit Debt Policy
The City of Maplewood is granted the power to issue conduit revenue bonds
and other conduit revenue obligations under Minnesota Statutes, Section
469.152-469.165, as amended, and Minnesota Statutes, Chapter 462C, as
amended. The Maplewood City Council, being aware that such financing may
prevent the emergence of blighted land, excessive unemployment and the need
for redevelopment financing from the State and Federal governments, has
expressed its support for the use of such financing but has reserved the right to
approve or reject projects on a case-by-case basis. The following criteria have
been developed as a guide for review of applications:
i. Criteria
a. The project is to be compatible with the overall development plans
and objectives of the City and neighborhood where the project is
located.
b. New businesses locating in Maplewood must show new tax base
being generated by the project.
c. Locating in areas of the City that the City wishes to develop,
redevelop, or which in any way complements any development plans
or policy of the City, will constitute a prime purpose under these
guidelines. It is also the City’s intent to assist in business expansions
or relocations within the City where it can be shown that such would
have a substantial, favorable impact on employment, tax base, or
both.
d. It is the City’s intent to assist new or existing businesses in the
acquisition of existing facilities, where such acquisition will maintain
the stability of the tax base, employment, or both.
e. The project must not put a burden on existing City services or utilities
beyond that which can be reasonably and economically
accommodated.
f. The applicant (and/or the lessee) must show sufficient equity in the
project. Applicant must provide a copies of all financing agreements
for review by the City.
g. The credit rating and method of offering conduit* bonds or notes of
the City are important considerations. The City will not entertain
applications for such financings unless (i) the debt is rated investment
grade by a nationally recognized rating agency or (ii) the debt is sold
in a private placement. Debt will be considered sold in a private
Workshop Packet Page Number 30 of 43
E2, Attachment 2
placement (i) if no advertising or solicitation of the general public
occurs, and (ii) if the bonds are initially sold to not more than ten
purchasers (not including any underwriter or placement agent as a
purchaser) and (iii) the City receives written certification from each
initial purchaser (or each underwriter or placement agent based on its
reasonable belief) that: (a) such purchaser has such knowledge and
experience in financial and business matters that it is capable of
evaluating the merits and the risks of the debt, and (b) such purchaser
is not purchasing for more than one account or with a view to
distributing the debt. In addition, for a private placement either (a) all
bonds or notes (except for one bond or note) must remain in minimum
denominations of not less than $100,000, with the exception of
charter schools which may have minimum denominations of $25,000
or (b) investment letters from not only each initial purchaser, but from
any subsequent purchaser must be obtained which contains the
above described certifications from the purchasers. Any offering
material for a private placement must prominently state in effect that:
“THE CITY OF MAPLEWOOD HAS NOT ASSUMED ANY
RESPONSIBILITY TO REVIEW THIS OFFERING MATERIAL AND
HAS NO RESPONSIBILITY FOR ITS ACCURACY OR
COMPLETENESS. THE CITY HAS NO FINANCIAL OBLIGATION
OF ANY NATURE WITH RESPECT TO THE OFFERED BONDS.”
Finally, to qualify as a private placement the financing documents
must require annual financial statements from the benefited private
party (or the ultimate provider of credit) to be delivered to each
investor (or a trustee).
h. *The term “conduit” refers to any type of City revenue obligation the
proceeds of which are loaned to a private party and for which the
City has no financial obligation.
i. Applications for acquisition of or replacement of machinery and
equipment will be discouraged unless in conjunction with a totally new
business in Maplewood, a physical plant expansion of an existing
business, or where it is shown that the equipment acquisition is
essential to the continued operation of the business in Maplewood.
Also, it is the City’s intent to assist where possible in the acquisition
of pollution control equipment for any new or existing business being
required to meet mandated standards.
j. A further permitted use under these guidelines are projects, whether
profit or nonprofit, engaged in providing health care services,
including hospitals, nursing homes, and related medical facilities,
when either of the following findings can be made:
Number of new jobs is increased.
Workshop Packet Page Number 31 of 43
E2, Attachment 2
The project would provide a facility or service considered
desirable or necessary by the community.
The following procedures have been developed to facilitate the application for
financing:
ii. Procedures
a. The applicant shall make an application for financing on forms
available from the Finance Department of the City of Maplewood.
The completed application is to be returned to the Finance Director,
accompanied by the processing fee, whereupon the application will
be forwarded to the City Council with a staff recommendation.
Specific findings shall be made and recited regarding the criteria as
well as satisfaction of public purposes of the applicable statutes.
b. The application cannot be considered by the City until tentative City
Code findings and requirements have been made with respect to
zoning, building plans, platting, streets and utility services.
c. The applicant is to select qualified financial consultants and/or
underwriters, as well as legal counsel, to prepare all necessary
documents and materials. The City may rely on the opinion of such
experts and the application shall be accompanied by a financial
analysis (pro forma income statement, debt service coverage,
mortgage terms, etc.) by the underwriter as to the economic
feasibility of the project and the underwriter’s ability to market the
financing. Financial material submitted is to also include most recent
fiscal year-end, audited, financial statements of the applicant and/or
of any major lessee tenant, if readily available.
d. Further, in the case of the tax exempt mortgage placements, the
applicant will be required to furnish the City, before passage of the
Final Resolution, a comfort letter (but not necessarily a letter of
commitment) from the lending institution, to the affect that said
lending institution has reviewed the economic feasibility of the
project, including the financial responsibility of the guarantors and
find that, in their professional judgment, it is an economically viable
project.
e. The applicant shall furnish along with the application, a description
of the project, plat plan, rendering of proposed building, etc., and a
brief description of the applicant company, all in such form as shall
be required at the time of application. This data, as necessary, may
be furnished to members of the City Council for background
information.
Workshop Packet Page Number 32 of 43
E2, Attachment 2
f. If an allocation of bonding authority is required under Minnesota
Statutes, Chapter 474A, as amended, the applicant shall be
required to pay any required application fee and provide any
required application deposit as specified in Chapter 474A, without
regard to whether the application fee or application deposit will be
refunded.
g. The applicant shall covenant in the applicable conduit bond
documents to comply with all applicable requirements of the Internal
Revenue Code of 1986, as amended (the “Code”), and the
applicable Treasury Regulations, including, but not limited to: (i) the
arbitrage and rebate requirements of Section 148 of the Code; and
(ii) the qualified bonds provisions of Sections 141(e), 142, 143, 144,
and 145 of the Code. The applicant shall be the party responsible
for monitoring the conduit bonds for compliance with such
requirements and to remediate nonqualified bonds in accordance
with the requirements of the Code and applicable Treasury
Regulations. The applicant shall be the party responsible for
monitoring compliance with the requirements of Section 148 of the
Code.
h. The applicant shall covenant in the applicable conduit bond
documents to reimburse the City for all costs paid or incurred by the
City (including the fees of attorneys, financial advisors, accountants,
and other advisors) as a result of the City’s response to or
compliance with an audit, inspection, or compliance check (random
or otherwise), by the Internal Revenue Service, the Minnesota
Department of Revenue, the Minnesota Office of the State Auditor,
or any other governmental agency with respect to the conduit bonds
or the project financed with the proceeds of the conduit bonds.
The following administrative fees and provisions apply to the application for
financing:
iii. Administrative Fees and Provisions
a. The City Council reserves the right to deny any application for
financing at any stage of the proceedings prior to adopting the final
resolution authorizing issuance of the industrial development
financing. The City Council may waive any provision of this Conduit
Bonds Policy if the City Council determines that such waiver is in the
best interests of the City.
b. The City is to be reimbursed, and held harmless, for and from any
out-of-pocket costs related to the actual or proposed issuance of
Workshop Packet Page Number 33 of 43
E2, Attachment 2
conduit revenue bonds. In addition, a nonrefundable processing fee
of $2,500 must be submitted with the application. Upon closing, an
administrative fee is due and payable to the City based on the
following schedule:
On the first $20,000,000 .50% of par
On portion in excess of $20,000,000 .10% of par
c. In the case of a refinancing, the fee shall be calculated at 50% of the
above schedule. The City will be reimbursed for any technical
changes to a bond issue previously issued at 25% of the above
schedule.
d. All applications and supporting materials and documents shall remain
the property of the City. Note that all such materials may be subject
to disclosure and/or public review under applicable provisions of State
law.
e. The Finance Department shall, report all conduit debt issues in the
Comprehensive Annual Financial Report in accordance with
Generally Accepted Accounting Principles and shall report any
material events with regard to all conduit debt issued by the City, and
still outstanding, to the City Council.
f. The applicant will be responsible for providing the City any required
arbitrage reports, continuing disclosure reports, and annual financial
statements after the issuance of the debt.
D. Post-Issuance Compliance Policy for Tax-Exempt Governmental
Bonds
The City of Maplewood issues tax-exempt governmental bonds to finance
capital improvements. As an issuer of tax-exempt governmental bonds, the City
is required by the terms of Sections 103 and 141-150 of the Internal Revenue
Code of 1986, as amended (the “Code”), and the Treasury Regulations
promulgated thereunder (the “Treasury Regulations”), to take certain actions
subsequent to the issuance of such bonds to ensure the continuing tax-exempt
status of such bonds. In addition, Section 6001 of the Code and Section 1.6001-
1(a) of the Treasury Regulations, impose record retention requirements on the
City with respect to its tax-exempt governmental bonds. This Post- Issuance
Compliance Procedure and Policy for Tax-Exempt Governmental Bonds (the
“Policy”) has been approved and adopted by the City to ensure that the City
complies with its post-issuance compliance obligations under applicable
provisions of the Code and Treasury Regulations.
i.Effective Date and Term. The effective date of this Policy is the date
Workshop Packet Page Number 34 of 43
E2, Attachment 2
of approval by the City Council of the City and shall remain in effect until
superseded or terminated by action of the City Council of the City. This
Policy amends and restates the Post- Issuance Compliance Procedure
and Policy for Tax-Exempt Governmental Bonds adopted by the City
Council of the City on June 10, 2012.
ii.Responsible Parties. The Finance Director of the City shall be the party
primarily responsible for ensuring that the City successfully carries out
its post-issuance compliance requirements under applicable provisions
of the Code and Treasury Regulations. The Finance Director will be
assisted by the staff of the Finance Department of the City and by other
City staff and officials when appropriate. The Finance Director of the
City will also be assisted in carrying out post-issuance compliance
requirements by the following organizations:
a.Bond Counsel (the law firm primarily responsible for providing
bond counsel services for the City);
b.Municipal Advisor (the organization primarily responsible for
providing financial advisor services to the City);
c.Paying Agent (the person, organization, or City officer
primarily responsible for providing paying agent services for
the City); and
d.Rebate Analyst (the organization primarily responsible for
providing rebate analyst services for the City).
The Finance Director shall be responsible for assigning post-issuance
compliance responsibilities to members of the Finance Department,
other staff of the City, Bond Counsel, Paying Agent, and Rebate Analyst.
The Finance Director shall utilize such other professional service
organizations as are necessary to ensure compliance with the post-
issuance compliance requirements of the City. The Finance Director shall
provide training and educational resources to City staff who are
responsible for ensuring compliance with any portion of the post-
issuance compliance requirements of this Policy.
iii. Post-Issuance Compliance Actions. The Finance Director shall
take the following post- issuance compliance actions or shall verify
that the following post-issuance compliance actions have been
taken on behalf of the City with respect to each issue of tax-
exempt governmental bonds issued by the City:
a. The Finance Director shall prepare a transcript of principal
documents (this action will be the primary responsibility of
Workshop Packet Page Number 35 of 43
E2, Attachment 2
Bond Counsel).
b. The Finance Director shall file with the Internal Revenue
Service (the “IRS”), within the time limit imposed by Section
149(e) of the Code and applicable Treasury Regulations, an
Information Return for Tax-Exempt Governmental
Obligations, Form 8038-G (this action will be the primary
responsibility of Bond Counsel).
c. The Finance Director shall prepare an “allocation
memorandum” for each issue of tax-exempt governmental
bonds in accordance with the provisions of Treasury
Regulations, Section 1.148-6(d)(1), that accounts for the
allocation of the proceeds of the tax-exempt bonds to
expenditures not later than the earlier of:
eighteen (18) months after the later of (A) the date the
expenditure is paid, or (B) the date the project, if any,
that is financed by the tax-exempt bond issue is placed
in service; or
the date sixty (60) days after the earlier of (A) the fifth
anniversary of the issue date of the tax-exempt bond
issue, or (B) the date sixty (60) days after the retirement
of the tax-exempt bond issue.
Preparation of the allocation memorandum will be the primary
responsibility of the Finance Director (in consultation with the
Municipal Advisor and Bond Counsel).
d. The Finance Director, in consultation with Bond Counsel, shall
identify proceeds of tax-exempt governmental bonds that must
be yield-restricted and shall monitor the investments of any
yield-restricted funds to ensure that the yield on such
investments does not exceed the yield to which such
investments are restricted.
e. In consultation with Bond Counsel, the Finance Director shall
determine whether the City is subject to the rebate
requirements of Section 148(f) of the Code with respect to
each issue of tax-exempt governmental bonds. In consultation
with Bond Counsel, the Finance Director shall determine, with
respect to each issue of tax-exempt governmental bonds of
the City, whether the City is eligible for any of the temporary
periods for unrestricted investments and is eligible for any of
the spending exceptions to the rebate requirements. The
Workshop Packet Page Number 36 of 43
E2, Attachment 2
Finance Director shall contact the Rebate Analyst (and, if
appropriate, Bond Counsel) prior to the fifth anniversary of the
date of issuance of each issue of tax-exempt governmental
bonds of the City and each fifth anniversary thereafter to
arrange for calculations of the rebate requirements with
respect to such tax-exempt governmental bonds. If a rebate
payment is required to be paid by the City, the Finance Director
shall prepare or cause to be prepared the Arbitrage Rebate,
Yield Reduction and Penalty in Lieu of Arbitrage Rebate, Form
8038-T, and submit such Form 8038-T to the IRS with the
required rebate payment. If the City is authorized to recover a
rebate payment previously paid, the Finance Director shall
prepare or cause to be prepared the Request for Recovery of
Overpayments Under Arbitrage Rebate Provisions, Form
8038-R, with respect to such rebate recovery, and submit such
Form 8038-R to the IRS.
iv.Procedures for Monitoring, Verification, and Inspections. The
Finance Director shall institute such procedures as the Finance
Director shall deem necessary and appropriate to monitor the use of
the proceeds of tax-exempt governmental bonds issued by the City,
to verify that certain post-issuance compliance actions have been
taken by the City, and to provide for the inspection of the facilities
financed with the proceeds of such bonds. At a minimum, the Finance
Director shall establish the following procedures:
a. The Finance Director shall monitor the use of the proceeds of tax-
exempt governmental bonds to: (i) ensure compliance with the
expenditure and investment requirements under the temporary
period provisions set forth in Treasury Regulations, Section 1.148-
2(e); (ii) ensure compliance with the safe harbor restrictions on the
acquisition of investments set forth in Treasury Regulations,
Section 1.148-5(d); (iii) ensure that the investments of any yield-
restricted funds do not exceed the yield to which such investments
are restricted; and (iv) determine whether there has been
compliance with the spend-down requirements under the
spending exceptions to the rebate requirements set forth in
Treasury Regulations, Section 1.148-7.
b. The Finance Director shall monitor the use of all bond-financed
facilities in order to: (i) determine whether private business uses
of bond-financed facilities have exceeded the de minimus limits
set forth in Section 141(b) of the Code as a result of leases and
subleases, licenses, management contracts, research contracts,
naming rights agreements, or other arrangements that provide
special legal entitlements to nongovernmental persons; and (ii)
Workshop Packet Page Number 37 of 43
E2, Attachment 2
determine whether private security or payments that exceed the
de minimus limits set forth in Section 141(b) of the Code have
been provided by nongovernmental persons with respect to such
bond-financed facilities. The Finance Director shall provide
training and educational resources to any City staff who have the
primary responsibility for the operation, maintenance, or
inspection of bond-financed facilities with regard to the limitations
on the private business use of bond-financed facilities and as to
the limitations on the private security or payments with respect to
bond-financed facilities.
c. The Finance Director shall undertake the following with respect to
each outstanding issue of tax-exempt governmental bonds of the
City: (i) an annual review of the books and records maintained by
the City with respect to such bonds; and (ii) an annual physical
inspection of the facilities financed with the proceeds of such
bonds, conducted by the Finance Director with the assistance with
any City staff who have the primary responsibility for the
operation, maintenance, or inspection of such bond-financed
facilities.
v.Record Retention Requirements. The Finance Director shall collect
and retain the following records with respect to each issue of tax-
exempt governmental bonds of the City and with respect to the
facilities financed with the proceeds of such bonds: (i) audited
financial statements of the City; (ii) appraisals, demand surveys, or
feasibility studies with respect to the facilities to be financed with the
proceeds of such bonds; (iii) publications, brochures, and newspaper
articles related to the bond financing; (iv) trustee or paying agent
statements; (v) records of all investments and the gains (or losses)
from such investments; (vi) paying agent or trustee statements
regarding investments and investment earnings; (vii) reimbursement
resolutions and expenditures reimbursed with the proceeds of such
bonds; (viii) allocations of proceeds to expenditures (including costs
of issuance) and the dates and amounts of such expenditures
(including requisitions, draw schedules, draw requests, invoices, bills,
and cancelled checks with respect to such expenditures); (ix)
contracts entered into for the construction, renovation, or purchase of
bond-financed facilities; (x) an asset list or schedule of all bond-
financed depreciable property and any depreciation schedules with
respect to such assets or property; (xi) records of the purchases and
sales of bond-financed assets; (xii) private business uses of bond-
financed facilities that arise subsequent to the date of issue through
leases and subleases, licenses, management contracts, research
contracts, naming rights agreements, or other arrangements that
provide special legal entitlements to nongovernmental persons and
Workshop Packet Page Number 38 of 43
E2, Attachment 2
copies of any such agreements or instruments; (xiii) arbitrage rebate
reports and records of rebate and yield reduction payments; (xiv)
resolutions or other actions taken by the governing body subsequent
to the date of issue with respect to such bonds; (xv) formal elections
authorized by the Code or Treasury Regulations that are taken with
respect to such bonds; (xvi) relevant correspondence, including
letters, faxes or emails, relating to such bonds; (xvii) documents
related to guaranteed investment contracts or certificates of deposit,
credit enhancement transactions, and financial derivatives entered
into subsequent to the date of issue; (xviii) bidding of financial
products for investment securities; (xix) copies of all Form 8038- Ts,
Form 8038-Rs, and Form 8038-CPs filed with the IRS and any other
forms or documents filed with the IRS; (xx) the transcript prepared
with respect to such tax-exempt governmental bonds, including but
not limited to (a) official statements, private placement documents, or
other offering documents, (b) minutes and resolutions, orders, or
ordinances or other similar authorization for the issuance of such
bonds, and (c) certification of the issue price of such bonds; and (xxi)
documents related to government grants associated with the
construction, renovation, or purchase of bond-financed facilities.
The records collected by the Finance Director shall be stored in any format
deemed appropriate by the Finance Director and shall be retained for a
period equal to the life of the tax-exempt governmental bonds with respect
to which the records are collected (which shall include the life of any bonds
issued to refund any portion of such tax-exempt governmental bonds or to
refund any refunding bonds) plus three (3) years. The Finance Director
shall also collect and retain reports of any IRS examination of the City or
any of its bond financings.
vi.Remedies. In consultation with Bond Counsel, the Finance Director
shall become acquainted with the remedial actions (including
redemption or defeasance) under Treasury Regulations, Section
1.141-12, to be utilized in the event that private business use of bond-
financed facilities exceeds the de minimus limits under Section
141(b)(1) of the Code. In consultation with Bond Counsel, the Finance
Director shall become acquainted with the Tax Exempt Bonds
Voluntary Closing Agreement Program described in Notice 2008-31,
2008-11 I.R.B. 592, to be utilized as a means for an issuer to correct
any post-issuance infractions of the Code and Treasury Regulations
with respect to outstanding tax-exempt bonds.
vii.Continuing Disclosure Obligations. In addition to its post-issuance
compliance requirements under applicable provisions of the Code
and Treasury Regulations, the City has agreed to provide continuing
disclosure, such as annual financial information and material event
Workshop Packet Page Number 39 of 43
E2, Attachment 2
notices, pursuant to a continuing disclosure certificate or similar
document (the “Continuing Disclosure Document”) prepared by Bond
Counsel and made a part of the transcript with respect to each issue
of bonds of the City that is subject to such continuing disclosure
requirements. The Continuing Disclosure Documents are executed
by the City to assist the underwriters of the City’s bonds in meeting
their obligations under Securities and Exchange Commission
Regulation, 17 C.F.R. Section 240.15c2-12, as in effect and
interpreted form time to time (“Rule 15c2-12”).The continuing
disclosure obligations of the City are governed by the Continuing
Disclosure Documents and by the terms of Rule 15c2-12. The
Finance Director is primarily responsible for undertaking such
continuing disclosure obligations and to monitor compliance with such
obligations.
viii.Other Post-Issuance Actions. If, in consultation with Bond Counsel,
Municipal Advisor, Paying Agent, Rebate Analyst, the City Manager,
the City Attorney, or the City Council, the Finance Director determines
that any additional action not identified in this Policy must be taken by
the Finance Director to ensure the continuing tax-exempt status of
any issue of governmental bonds of the City, the Finance Director
shall take such action if the Finance Director has the authority to do
so. If, after consultation with Bond Counsel, Municipal Advisor,
Paying Agent, Rebate Analyst, the City Manager, the City Attorney,
or the City Council, the Finance Director and the City Manager
determine that this Policy must be amended or supplemented to
ensure the continuing tax-exempt status of any issue of governmental
bonds of the City, the City Manager shall recommend to the City
Council that this Policy be so amended or supplemented.
ix.Taxable Governmental Bonds. Most of the provisions of this Policy,
other than the provisions of Section 7, are not applicable to
governmental bonds the interest on which is includable in gross
income for federal income tax purposes. On the other hand, if an
issue of taxable governmental bonds is later refunded with the
proceeds of an issue of tax-exempt governmental refunding bonds,
then the uses of the proceeds of the taxable governmental bonds and
the uses of the facilities financed with the proceeds of the taxable
governmental bonds will be relevant to the tax-exempt status of the
governmental refunding bonds. Therefore, if there is any reasonable
possibility that an issue of taxable governmental bonds may be
refunded, in whole or in part, with the proceeds of an issue of tax-
exempt governmental bonds then, for purposes of this Policy, the
Finance Director shall treat the issue of taxable governmental bonds
as if such issue were an issue of tax-exempt governmental bonds and
shall carry out and comply with the requirements of this Policy with
Workshop Packet Page Number 40 of 43
E2, Attachment 2
respect to such taxable governmental bonds. The Finance Director
shall seek the advice of Bond Counsel as to whether there is any
reasonable possibility of issuing tax-exempt governmental bonds to
refund an issue of taxable governmental bonds.
x.Qualified 501(c)(3) Bonds. If the City issues bonds to finance a
facility to be owned by the City but which may be used, in whole or in
substantial part, by a nongovernmental organization that is exempt
from federal income taxation under Section 501(a) of the Code as a
result of the application of Section 501(c)(3) of the Code (a “501(c)(3)
Organization”), the City may elect to issue the bonds as “qualified
501(c)(3) bonds” the interest on which is exempt from federal income
taxation under Sections 103 and 145 of the Code and applicable
Treasury Regulations. Although such qualified 501(c)(3) bonds are
not governmental bonds, at the election of the Finance Director, for
purposes of this Policy, the Finance Director shall treat such issue of
qualified 501(c)(3) bonds as if such issue were an issue of tax-exempt
governmental bonds and shall carry out and comply with the
requirements of this Policy with respect to such qualified 501(c)(3)
bonds.
Workshop Packet Page Number 41 of 43
MEMORANDUM
TO: City Council
FROM: Melinda Coleman, City Manager
DATE: July 5, 2017
SUBJECT: Review of 2018 Budget Process and Calendar
Introduction The operating budget is the annual financial plan for funding the costs of City services
and programs. The general operating budget includes the General Fund, Special
Revenue Funds, and Capital Project Funds. Enterprise operations are budgeted in
separate Enterprise Funds.
The City is required to file a proposed property tax levy for fiscal year 2018 with Ramsey County
in September of 2017. The final 2018 tax levy must be adopted in December of 2017. The City
Council may decrease the proposed tax levy prior to final adoption, but may not increase the
proposed levy after it is filed with the County. The City Manager, Finance Director, and
Department Heads are actively engaged in planning and developing the 2018 budget. They are
focused on balancing the need to control or reduce costs with maintaining or increasing existing
levels of service.
The attached Budget Calendar outlines the process and timeline in preparing the City’s 2018
Budget.
Recommendation
No action required at this time. This item is for discussion only.
Attachments:
1. Budget Calendar
E3
Workshop Packet Page Number 42 of 43
BUDGET CALENDAR
By March 30 The City Council and Senior Management Team hold a
strategic planning retreat to set priorities for the CIP and
budget.
By April 30 The Finance Department prepares wage and benefit estimates
for the budget year. Operating budget worksheets and
instructions are prepared for department heads. The Finance
Director prepares the debt service budget.
By May 31 The City Manager and Finance Director meet with department
heads to discuss department objectives and performance
indicators for the budget year. The finance department
prepares revenue estimates for the budget year.
By June 30 The Capital Improvement Plan is prepared by the Finance
Director. Department heads submit budget requests to the City
Manager and Finance Director.
By July 31 The Finance Director reviews budget requests for
reasonableness and accuracy and prepares a preliminary
report for the City Manager. The Finance Director and City
Manager meet with department heads to recommend revisions
to submitted budgets.
By August 31 City Council workshops are held to review the proposed budget
and receive input. The Finance Director prepares a proposed
budget document and posts it to the City website.
By September 30 The City Council adopts a preliminary budget and the Finance
Director certifies the budget to Ramsey County. A public
hearing date is set for the property tax hearing.
By October 30 The Finance Director prepares a presentation and preliminary
budget document for the property tax hearing.
By November 30 Ramsey County mails a proposed property tax notice to all
taxpayers in Maplewood. Final fee schedules are adopted by
the City Council.
By December 15 The City holds a public hearing to obtain input on the proposed
property taxes. The City Council adopts the final budget
subsequent to the public hearing.
By December 30 The Finance Director certifies the final property tax levy to
Ramsey County. The Finance Director files the Certification of
Compliance with Truth in Taxation and the Property Tax Levy
Report with the Department of Revenue. The Finance Director
prepares and distributes the final budget document and
publishes the Summary Budget Statement.
Subsequent actions The Finance Director submits the approved budget document to
the Government Finance Officers Association for review and
consideration of the Distinguished Budget Presentation Award.
E3, Attachment 1
Workshop Packet Page Number 43 of 43