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CR 2003-161 Prevailing Wage Ordinance Study• October 21, 2003 Proposed Action. Overview. Primary Issues to Consider. Steven C. Mielke, City Manager PREVAILING WAGE ORDINANCE STUDY Council Report 03 -161 Staff recommends adoption of the following motion Move to instruct staff to prepare background materials for a discussion of a potential prevailing wage ordinance, and to place the discussion on a future Council Work Session. Adoption of this motion will begin a review and discussion of the concept and potential of a prevailing wage law for the City of Hopkins. The City of Hopkins, in approving construction projects, is required to award bids to the lowest responsible bidder. The City does not currently have requirements for prevailing wages within its bidding documents, and therefore, both union and non -union contractors can bid on projects at whatever wage rates they pay their employees. Other levels of government have prevailing wage laws in place that require minimum wages by all contract bidders. These wages are called prevailing wages and tend to be in line with union wage rates. While very few cities have prevailing wage requirements, it is quite common for state and federal organizations to have such requirements. It has been requested of the City of Hopkins by at least one union organization that the City consider adopting a prevailing wage ordinance. Approval of this motion would set in action a review of the issue, as well as a discussion of the topic by the City Council. This discussion would not require adoption of a prevailing wage ordinance; simply a discussion of the topic with the potential of adoption should the Council feel so inclined in the future. • What is the impact of completing the study? A study of the prevailing wage ordinance would provide the Council with information from staff and interested organizations on the pros and cons of adopting a prevailing wage requirement. Financial Impact: N/A Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Hopkins Personnel Policies Notes: Staff will consult with the League of Minnesota Cities, union organizations, and others October 10, 2003 Overview 2003 DISTINGUISHED BUDGET PRESENTATION AWARD The Government Finance Officers Association of the United States and Canada (GFOA) is pleased to announce that City of Hopkins, Minnesota has received the GFOA's Distinguished Budget Presentation Award for its budget. The award represents a significant achievement by the entity. It reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity's budget serves as: • a policy document ❖ a financial plan • an operations guide • a communications device Budget documents must be rated "proficient" in all four categories to receive the award. When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual or department designated as being primarily responsible for its having achieved the award. This has been presented to Lori Yager, Finance Director. Since the inception of the GFOA's Distinguished Budget Presentation Awards Program in 1984, approximately 900 entities have received the Award. Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America. The GFOA is a nonprofit professional association serving 14,000 government finance professionals throughout North America. The GFOA's Distinguished Budget Presentation Awards Program is the only national awards program in governmental budgeting. a MEMORANDUM • • To: Honorable Mayor and Members of the City Council FROM: Steve Stahmer, Assistant to the City Manager cy,...0 DATE: October 16, 2003 SUBJECT: 2003 Hopkins Community Image Awards ADMINISTRATIVE SERVICES DEPARTMENT It is time to present the awards for the 2003 Hopkins Community Image Awards. The awards are given annually to individuals and businesses that have made a visual improvement to their property or have demonstrated continued superior maintenance of their property, which in turn has a significant positive impact on the image of the City of Hopkins. Nominations for this year's awards were accepted throughout the year and the five- member HCIA Review Committee has recently reviewed those nominated properties and made their selections. Three properties and their owners were recommended to receive awards which will be presented at the October 21, 2003 Hopkins City Council Meeting. Awards consist of a commemorative plaque and a gift certificate for Bellisimo (located at Marketplace Lofts). The following homes /owners will receive Community Image Awards: Mark and Lisa Curtis — 4318 Avenue North The Curtis' home is very well maintained, with attractive new siding, shutters and landscaping. New trees, bushes and ornamental grasses have made a very positive impact on the home's "curb appeal." As several of the judges commented, the Curtis' have obviously put a lot of work into improving the exterior of their home. Sandra Shinger and Bob Asseldt —18 Jackson Avenue South Since moving in two years ago, Sandra and Bob have removed unsightly, overgrown trees and shrubs, installed new siding and windows, added a deck/porch and just recently added new grass and plantings. The neat and well- maintained home was nominated by neighbors who stated that the home adds "wonderful appeal to the neighborhood." Citigables — 32 11 Avenue South Citigables is an owner - occupied condominium where every resident takes pride in the appearance of the facility. Attractive flowers and well- trimmed shrubs and trees surround the building and create an eye - catching facade and rear parking area. The property is meticulously maintained at all times. This is the second time that Citigables has received a Hopkins Community Image Award. Congratulations to this year's winners! SINGLE - FAMILY RESIDENTIAL MULTI - FAMILY RESIDENTIAL October 10, 2003 Overview Lori Yager Finance Director 2003 THIRD QUARTER FINACIAL REPORT PRESENTATION The following is a brief presentation of the City of Hopkins 2003 Third Quarter Financial Position. • Revenues Expenditures CITY OF HOPKINS 2003 FINANCIAL REPORT - SEPTEMBER GENERAL FUND BUDGET TO ACTUAL Year To Date 9 Months 75% of Year Percentage Percentage Received/ Received/ Expended Expended 2003 Budget Year to Date 2002 2002 Property Taxes $ 6,201,252 $ 4,517,193 72.84% 72.03% Intergovernmental Revenue 744,383 487,514 65.49% 69.48% Licenses and Permits 495,530 530,497 107.06% 76.20% Fines and Forfeitures 130,000 97,337 74.87% 56.86% Interest Earnings 160,615 52,246 32.53% 37.79% Charges for Services 196,340 241,474 122.99% 75.59% Other Miscellaneous 12,664 8,596 67.88% 91.09% Total $ 7,940,784 $ 5,934,857 74.74% 71.19% Mayor /Council $ 104,029 $ 46,123 44.34% 56.45% Administrative Services 310,049 236,099 76.15% 70.33% Finance 149,599 102,284 68.37% 72.16% Legal 123,980 69,797 56.30% 60.40% Municipal Building 111,772 52,114 46.63% 55.24% Activity Center 309,305 202,207 65.37% 63.98% Community Services 761,487 556,177 73.04% 71.53% Police 3,396,387 2,521,541 74.24% 76.43% Fire 527,439 357,030 67.69% 62.07% Emergency Preparedness 24,690 3,291 13.33% 7.26% Public Works 1,790,540 1,156,139 64.57% 69.68% Recreation 226,405 200,493 88.56% 84.65% Planning & Economic Dev. 101,790 73,906 72.61% 70.49% Unallocated 165,150 0 0.00% 107.84% Transfers 15,953 0 0.00% 0.00% Total $ 8,118,575 $ 5,577,201 68.70% 72.12% Sources (Uses) of Fund Balance ($177,791) $357,656 201.17% Revenues Total Expenditures CITY OF HOPKINS FOUR YEAR COMPARATIVE FINANCIAL REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 200X GENERAL FUND 2003 2002 2001 2000 Property Taxes 4,517,193 4,444,868 3,508,464 3,289,174 Intergovernmental Revenue 487,514 750,813 1,591,541 1,432,837 Licenses and Permits 530,497 324,689 306,531 347,656 Fines and Forfeitures 97,337 79,603 83,149 74,400 Interest Earnings 52,246 61,596 88,400 101,626 Charges for Services 241,474 138,134 122,519 158,210 Other Miscellaneous 8,596 54,819 41,216 40,346 $5,934,857 $5,854,522 $5,741,820 $5,444,249 Mayor /Coucnil 46,123 64,082 74,693 72,981 Administrative Services 236,099 273,404 221,426 237,260 Finance 102,284 107,447 96,645 96,134 Legal 69,797 74,257 66,742 74,939 Municipal Building 52,114 62,211 99,202 49,988 40 Activity Center 202,207 194,198 191,082 174,982 Community Serv. - Admin 556,177 551,862 537,942 519,876 Police 2,521,541 2,602,470 2,380,218 2,181,714 Fire 357,030 358,722 390,319 359,850 Emergency Preparedness 3,291 1,822 13,628 1,118 Public Works 1,156,139 1,297,015 1,334,637 1,185,739 Recreation 200,493 290,905 237,740 226,130 Planning & Economic Dev. 73,906 74,600 137,038 97,193 Unallocated 0 110,561 (10,021) 765 Transfers 0 0 0 0 Total $5,577,201 $6,063,556 $5,771,291 $5,278,669 Sources (Uses) of Fund Balance $357,656 ($209,034) ($29,471) $165,580 CURRENT AND HISTORIC QUARTERLY REPORT FOR ENTERPRISE FUND OPERATIONS (no capital, construction or depreciation) For the Quarter Ending September 30, 2003 2002 2001 2000 1999 . WATER OPERATING REVENUE 653,929 654,331 643,348 607,905 589,525 OPERATING EXPENSE 538,465 522,831 538,814 493,077 488,681 OPERATING INCOME (LOSS) 115,464 131,500 104,534 114,828 100,844 SEWER OPERATING REVENUE 1,015,627 1,040,196 1,035,487 1,043,846 1,085,460 OPERATING EXPENSE 1,049,553 955,687 903,813 845,543 892,328 OPERATING INCOME (LOSS) (33,926) 84,509 131,674 198,303 193,132 REFUSE OPERATING REVENUE 413,827 475,839 417,656 414,574 448,031 OPERATING EXPENSE 436,222 432,104 437,657 409,194 375,125 OPERATING INCOME (LOSS) (22,395) 43,735 (20,001) 5,380 72,906 STORM SEWER REVENUE 535,462 517,711 499,592 496,158 467,524 OPERATING EXPENSE 73,681 77,070 83,429 87,345 32,740 OPERATING INCOME (LOSS) 461,781 440,641 416,163 408,813 434,784 PAVILLION /ICE ARENA OPERATING REVENUE 139,900 130,614 150,039 141,766 144,165 OPERATING EXPENSE 184,863 181,230 187,751 164,010 168,331 OPERATING INCOME (LOSS) (44,963) (50,616) (37,712) (22,244) (24,166) Page 1 Internal Loan Bond issue Bond payment Cash Balance 9/30/03 Cash Balance 9/30/02 Cash Variance Explanation of Cash Variances Equip. Replc. Revenue $ 257,361 Expense 7,764 Operating Income(Loss) 249,597 Non - Operating Revenue (Expense) (258,344) Net Income (Loss) $ (8,747) Capital Outlay (53,783) $ 1,978,058 $ 1,478,843 499,215 Delayed capital purchases CITY OF HOPKINS 2003 FINANCIAL REPORT - SEPTEMBER PROPRIETARY FUNDS Year to Date Water $ 653,929 538,465 115,464 (263,523) (72,871) Sewer • $ 1,015,627 $ 1,049,553 (33,926) $ (148,059) $ (122,977) (105,000) $ 1,047,529 $ 1,245,093 $ 1,236,678 $ 945,310 (189,149) 299,783 Bond & Internal interest borrowing payment to Storm Sewer paid back Refuse/ Bulk Storm Sewer 413,827 $ 535,462 $ 139,900 $ 5,755 436,222 73,681 184,863 35,974 (22,395) 461,781 (44,963) (30,219) (89,051) (13,786) (276,765) (43,627) (2,328) $ (36,181) $ 185,016 $ (88,590) $ (32,547) (9,831) (7,286) (9,712) (32,575) 0 32,575 Operating losses from 2002 1,265,000 (250,000) $ 560,781 $ 1,207,284 $ $ 660,025 $ 111,823 (99,244) 3,844 $ (6,686) $ 36,748 $ (19,054) 1,095,461 (32,904) (12,368) Bond issue 2003 Pavilion/ Ice Arena Skate Park Operating Operating losses from losses 2003 CITY OF HOPKINS 2003 FINANCIAL REPORT - SEPTEMBER STATUS OF RESERVES Beginning Balance Balance Balance (Deficit) Dollar (Deficit) Fund 1/1/2003 9/30/2003 Difference 9/30/2002 General Fund $ 3,409,647 $ 3,715,056 $ 305,409 $ 2,967,168 Economic Development Fund 3,114,834 3,280,464 165,630 3,185,197 Housing Rehab Fund 1,109,456 1,036,088 (73,368) 1,082,358 Parking Fund 295,130 280,476 (14,654) 338,965 Cable TV Fund 291,503 308,620 17,117 360,325 Tax Increment 1.1 Fund 945,477 1,236,326 290,849 1,424,874 Tax Increment 1.2 Fund 187,871 221,083 33,212 178,443 Tax Increment2.1 Fund 224,692 389,301 164,609 441,081 • Tax Increment 2.7 Fund 64,628 • 107,805 43,177 148,994 Tax Increment 2.8 Fund 14,158 40,413 26,255 33,015 Tax Increment 2.9 Fund 167,288 203,408 36,120 206,921 Tax Increment 2.10 Fund 15,169 73,012 57,843 22,791 Tax Increment 2.11 Fund 2,877,811 2,973,870 96,059 535,720 Park Improvement Fund 198,929 135,064 (63,865) 124,705 Municipal State Aid Construction Fund 2,231,496 3,121,882 890,386 2,601,824 Capital Improvement Fund 10,304,807 10,695,321 390,514 80,759 P.I.R. Construction Fund 1,536,142 480,735 (1,055,407) (384,664) Debt Service 4,727,313 1,583,270 (3,144,043) 1,140,394 CASH AND INVESTMENTS - ALL FUNDS 9/30/2003 9/30/2002 Total City Investments $ 31,229,284 $ 14,382,981 • tOussandudiag City of Hopkins - Big Picture •• Overall city expenditures are currently down $85 1,000 compared to last year at this time. Total expenditures are currently $18.3 million. Decreased spending in gereral city operations of $485,000 and $310,000 less in redevelopment spending represents the majority of the decreaR. • We will definitely see a change in total expenditures as constructbn costs are paid for the facility projects. tzmwaultaMmeat= . < r >n. Current Revenue Distribution Pavilion Internal TIF >vr r J �2ocric4aec��: + >. 04, sS�S4?E4 : City of Hopkins - Big Picture •• Overall city revenues are up approximatdy $4,100,000 compared to last year at this time. Totd revenues are currently $17.9 million. The majority of the additional rorenues art derived from the proceeds of the bonds the ciy issued in May 2003 for the police remodeling project. • Economic DeNelopment received a grant from the Met council to help with redevelopment costs associated with the Aliarit Tech project and debt service funds have additional tax levy for the facility project debt. ussammumuMitimaMS Current and historic Revenues and Expenditures $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 so 2003 2002 2001 200 0 Revenues ® Expenditures Current Expenditure Distribution Debt Capital 1 General Fund Revenues ❖ General fund revenms are up slightly over last year due to increared permits and charge for services. Total general fund revenues are cunently $5.9 million. .• Property tax revenues stayed the same. ❖ Intergovernmental revenues decreased $260,000. ❖ Permit fees are up $20Q000 and plan check fees are up $100,000 due to the redbvelopment activity in Hopkins. ❖ Permit and plan check fees are dependent upon development and redevelopment activity in Hopkins and fluctuate accordingy. General Fund Expenditures ❖ All general fund programs are underbudget at this time. ❖ The programs are under budget as aresult of decreased travel and training, postponed supply purchases andunfilled positions. ❖ Program expendiures are also down compared to last year at this time due b the same reasons given above and also decreased capital expenditures. tfailinagaidittilleggitaW General Fund Revenue Comparison (in thousands) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 tom:::: >::1VIs Taxes Intergvn't Lk/Per /Fees Charges Interest ■ 2003 © 2002 032001 0 2000 tmengzsgastanzazgailliO General Fund Expenditures General fund expenditures are down $48000 or 8% from last year at this time. .• Some purchases halve been postponed and out of state training was prohibited. Equipment replacement was reduced 50 %. An early retirement incentive was offered and accepted by four employees. ❖ Because of the quick respon€ to the state aid cuts and the banner year for development the city is on track to possibly experience a surplus at the end of 2003. This surplus cold be used to offset the $1,100,00 state aid cuts in 2004. 1,000 6,000 5,000 4,000 8,000 2,000 1,000 0 General Fund Expenditure Compaison (in thousands) © menses 2 • • Planning Recreation Public Works Fire •s.+YnsChR�eiCav� General Fund Expenditures Council Admin Finance Legal Activity Ctr. Comm. Serv. Police tmasismstammassams Economic and Development ❖ Economic DeNelopment received a $416,000 grant from the Met Council b help pay for the Chan up costs associatd with the Alliant Tech project. The city has forwarded this grant to the Hopkins Mainstreet LLC development group to reimburse them for they costs incurred. + Current expenditures are $128,000 this excludes the reimbursement for theAlliant Tech project. The city anticipates using fundbalance reserves every year to continue its redevelopment efforts. The city is also paying for its portion of the Art Center construction costs through this fund. travosonsamiStonasEdati ,t. Tax Increment Districts •:• The city has received $1.7 million in tax increment revenues in 2003. ❖ These funds are used on specific construction projects or debt extinguishment of existing projects. ❖ Currently $800,000 has been expended on existing debt and $210,000 has been expended on construction and administration costs. State Chemical Assessment Fund ❖ The City of Hopkins is host to one o the State Chemical Assessment sites and receives state funding for training and equipment. This years expenditures have included a new piece of equipment called micromedex. In addition to the new equipementthe staff has participated in training for chemical assessment. +:+ The budget in 2003 is $56,000. So far expenditures are $30,000. .44k4444444 :. uzawandbumagmazass Community Development Block Grant 4. The city has received block grant money from the federal government to assist with community and housing improvements. The city has spent $27,000 on improving the security and locks at Dow Towers. ❖ The city has issued new loans and grants in 2003 for approximately $216,000 for housing improvements. turszalwadasemzusassag Hop - A -- Ride and Housing Rehab ❖ Hop - - ride is funded through the Met Council and ticket sales. Housing Rehab isfunded with existing reserves and some interest earnings. ❖ Hop -a -ride costs are currently $85,000. It is anticipated that hopa -ride will need $14,000 in additional revenue to cover its costs. The additional revenue is budged to come from the general fund. + Housing Rehab costs are current) $100,000. This includes $38,000 for the Valley Park condominium roof repairs. The rwf repair was paid for with unspent bond proccds from 1999. 3 r Parking and Section 8 Housing •:• The Parking fund generates revenues through parking permits and fines. Section 8 Housing is funded with federal dollars. 4. Parking costs are currently $82,000. The parking fund has been utilizing some fund balance reserves for continued enforcement and maintenance. • :• Section 8 costs are currently $70,000. The federal funds received by this activity more than offset the expenditures incurred. - aoeoar!<kea< . Art Center Operations and Promotions ❖ The Art Center fund generates revenues through rent. HCA Inc. pays the Art Center from profits they generate through programs and shows. 4• The Art Centers expenditures are currently $245,000. The cable fund supports the communication activities for the Art Center by covering any deficit it may have at year end. This year the support needed is projected to be $50,000. Last year it was the same amount. Brokerage Investment Holdings ❖ Dain Bosworth • Bankers Trust • Smith Barney + Wells Fargo • Morgan Keegan • Legg Mason TOTAL • $ 1,000,000 • $12,930,000 ❖ $ 3,000,000 ❖ $ 5,155,000 .• $ 5,000.000 • $ 3,500,000 $30,585,000 Cable and Depot Coffee House 4. The Cable fund genera4s revenues through cable franchise fees. The Depot Coffee Muse is funded with concessions, state grants, a scbol district partnership lease and rents. • Cable costs are curently $58,000. The cable fund supports communicatbn activities throughout the city. It also supports communication and promotion for the Art Center. 4• Depot Coffee House costs are cuiintly $149,000. This encompasses the coffee operations and the teen center programs. Funds received by this activity currently cover the expenditures incurred. • Total cash and investments are up $16,000,00 compared to September 2002. + Return on inveament has remained about the same at 19% in 2003. Cash and Investments i smisizgaugzatis Internal Service and Enterprise •• The equipment replacement plan is \ery healthy with a working capital balance of $2,20(000. This balance will be used to purchase equipment in the future. • The utility funds are also heathy with a combined working capital bdance of $3,300,000. The working capital bdance is used to find capital and construction projects in the utlity funds. 14 4 1,050 900 750 600 450 300 150 0 i SC{ya4�CNkk.. '�.to UTILITY FUNDS (In thousands) Water Sewer Refuse Storm •:• Utility fund working capital as of September 30, 2003. tibastammaasatailassZSCS 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2003 r'mQEY�SYKs >. <a {s�ccc�cm� Governmental Reserves (In Thousands) 2002 a Several load ® Special Severn © Capital o Peet City of Hopkins Reserves ❖ Governmental fund types are general fund, special revenue funds, debt service funds and capital project funds. .• Governmental fund type reserves are up approximately $15,300,000 compared to Sepember 2002. The increased reserves are primarily in the capital improvement funds and special revenue funds. These funds are used to pay for the faciltiy projects underway and the constructmn taking place on County Rd. 3. Overall Report The City of Hopkins' current financial position is very positive considering the economic conditions. This is a result of an expanding local economy, quick actions to offset deep state aid cuts and the flexibility to make adjustments to future plans. 5