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Memo - Proposed Changes To city Code 407 Rental Registration MEMO From: Honorable Mayor and Members of the City Council Elizabeth Page, Housing Inspedor and Connie Kurtz, Crime Prevention Specialist To: Subject: May 3, 2001 Proposed changes to Ci~ Code 407 Rental Registration Date: Attached is a draft of the proposed changes to City Code 407 - Rental Registration. ~ackaround Approximately six months ago. city staff members including the city manager, inspedions, police, fire, and planning met to discuss concerns regarding a particular rental property that was experiencing numerous police calls and complaints. The police department met with the property manager to determine what the problems were and how to improve management of the property and tenants. Staff met to share ideas and concems about the city's rental housing situation. The Inspections Department had already begun to look at making revisions to the citys housing codes. After much discussion staff decided to look into changing the current rental registration process into a rental license and reviewEKI other cities' rental licensing codes. W found the cities that have rental licensing included a penalty process, conduct criteria as well as the ability to deny, revoke, suspend or non-renew the license if certain criteria were not met. Staff feels changes to the City's rental registration code are a proactive approach to the city's future needs. We have been fortunate in the past that when a problem has occurred with a particular property, management/owner has been cooperative with us in taking care of the problem. It is only a matter of time before we Nn into a situation where that is not the case. The proposed changes to City Code 407 sets guidelines for owners/managers of rental property of what is expected of them for maintaining their property, what type of conduct is expected from the tenants, as well as establishing a process for dealing with a property where a problem exists as defined in City Code 407. Many of the recommended changes are part of the current Crime Free Multi-housing program used in Hopkins. Section 407 - Rental Registration. Licenses 407.01. Purpose. It is the purpose of this Chapter to assure that rental housing in the City is decent, safe and sanitary and is so operated and maintained as not to become a nuisance to the neighborhood or to become an influence that fosters blight and deterioration or creates a disincentive to reinvestment in the community. The operation of residential rental properties is a business enterprise that entails certain responsibilities. Operators are responsible to take such reasonable steps as are necessary to assure that the citizens of the city who occupy such units may pursue the quiet enjoyment of the normal activities of life in surroundings that are: safe, secure and sanitary; free from crimes and criminal activity, nuisances or annoyances. 407 ~O-l-~. Preamble. The City believes that providing for public health, safety and welfare to its citizens mandates the existence of a residential rental premises dwelling unite s) registration license and maintenance programl which corrects substandard conditions and maintains a standard for residential rental premises dwelling unites). 407.02l. Scope. This Section applies to all premises residential rental dwelling unites), which are rented in whole or in part as a dwelling unit. It includes accessory structures such as garages and storage buildings and appurtenances such as sidewalks and retaining walls, which are on the premises residential rental property. This Section does not apply to Minnesota Department of Health licensed rest homes; convalescent care facilities, nursing homes, hotels or motels licensed by the City. Subd 1. Definitions. CITY: As used in this section shall mean the Building Official, Housing Inspector, or any other official of the City of Hopkins designated to enforce the provisions of this section. DENIAL: As used in the City of Hopkins Ordinances is the refusal to grant a license to a new or renewing applicant by the licensing program administrator. LICENSE: The formal approval of an activity specified on the certificate of license issued by the City of Hopkins. MULTIPLE DWELLING (S): A building containing two or more residential rental dwelling units. NON-RENEWAL: The decision to decline to re-issue a license as defined in this section. PROVISIONAL LICENSE: A license that has limitations and requirements specified in this section. RENTAL: The leasing of a dwelling unit to a non-owner for a fixed or non-fixed period of time, and shall include "lease to buy, contract for deed, installment sales, purchase", and other similar arrangements whereby nonpayment of a periodic payment means the occupants may be evicted without the necessity of either a statutory mortgage foreclosure procedure, a statutory termination of contract for deed procedure or a statutory repossession procedure. RESIDENTIAL RENTAL DWELLING UNIT (S): Any room or group of rooms occupied or intended to be occupied for sleeping or living, with or without cooking facilities. REVOKE: To take back a license issued by the City of Hopkins. SUSPEND: To make a license temporarily inoperative. 407.0J1. Registration Rental License. Subd. 1. Required. No person shall operate, let or cause to be let, a residential rental dwelling unit~ which has not been properly registered licensed with the City of Hopkins in the manner required by this Ordinance. Upon receipt of the properly executed initial application for registration a rental license, the Gede Official and/or his or her designated agent City may cause an inspection to be made of the premises residential rental dwelling unit to determine whether it is in compliance with Section 405, other Hopkins ordinances and the laws of the State of Minnesota. Every premises residential rental dwelling unit may be reinspected re-inspected after a renewal license application is filed to determine if it still conforms to all applicable codes and ordinances. Subd. 2. Application Filed. A registration license application shall be submitted to the Code Official City of Hopkins on forms furnished by the City of Hopkins and must contain the following information: (a) N aIDe and address N arne, address, and telephone number of fhe owner of the premises residential rental dwelling unit(s). (b) Name and address Name, address, and telephone number of a person in addition to the owner who shall be responsible for compliance with this and any other Code requirement pertaining to the premises residential rental dwelling unit( s ); such person shall reside in--tlw metropolitan area within 50 miles of the residential rental dwelling unit(s). (c) Name and address Name, address, and telephone number of any owner's agent responsible for the management of the premises residential rental dwelling unit(s). (d).Name and address Name, address, and telephone number of all partners if the owner is a partnership. (e) Name and address Name, address, and telephone number of all officers of a corporation if the owner is a corporation. (f) N atne and address Name, address, and telephone number of all vendors and of all vendees, if the premises residential rental dwelling unite s) is being sold pursuant to a contract for deed. (g) Name and address Name, address, and telephone number of any assignees of either the vendor or the vendee in any such contract for deed. (h) Legal address of the premises residential rental dwelling unites). (i) Number and type of dwelling units (one (1) Bedroom, Two (2) Bedroom~, etc....) within each of the premises residential rental dwelling unites). Subd. 3. Agent forEmergency Repair Required. No registration rental license shall be issued or renewed for a nonresident owner of the premises unless such owner designates in writing the name of his/her agent who is responsible for maintenance and upkeep and who is authorized to institute emergency repairs of the premises. The Code Official City shall be notified in writing of any changes of such agent. Subd. 4. Changes in Registration License or in Premises Registered Licensed. A registration license is not assignable. If the name or address of any of the persons required to be provided changes, or if any changes occur in the ownership or management of the premises, the existing registration license shall be amended within thirty (30) days to correspond to such changes and each such amendment shall be accompanied by a fee set by City Council resolution. If changes are made in the number or type of units registered licensed, such additional units shall be registered licensed and shall be accompanied by the fee payment required to be paid for an initial registration license. Subd. 5. Annual Registration Licensing. All residential rental premises dwelling units shall be registered licensed before being let, in whole or in part. Registration Licenses for each premises residential rental dwelling unit expires annually on October 31. The registration license for each premises residential rental dwelling unit must be renewed annually before October 31. All outstanding citations must be brought current before the renewal rental license will be issued. Any unlicensed rental properties are subiect to penalties. Subd. 6. Re~istration License Fee. The initial and renewal registration license fees are set forth by City Council resolution. These must accompany the registration license application. The registration license fee is doubled when an application is received more than thirty (30) days after it was due. Subd. 7. Record Retention. The registration license application and all other documents pertinent to a premises residential rental dwelling unit shall be kept on file in the office of the Code Official Inspections Office. A copy shall be furnished to the owner or other authorized person upon request. 407.M 05. Issuance of Certificate of License. The City shall issue a license if the building and the application are found to be in compliance with the provisions of this section subi ect to Section 407.10 (on grounds for licensing, suspension, revoking, and non-renewal) provided all real estate taxes and City utility bills for the premises, which are due, have been paid. Real estates taxes will not be considered to be due and unpaid for purposes of this section while a proper and timely appeal of such taxes is pending and is diligently pursued to completion by the landowner. Rental licenses are not required to be posted on the premises, however the property owner must be able to present the license if asked to do so. Posting. The ovmer of a premises shall post a copy of the "Occupancy Record Card" at the premises in a place and in a mar..ner appro'..,ed by the Code Official. 407.06. Authority. The city manager shall be responsible for enforcement and administration of this ordinance. Authority to take any action authorized under this section may be delegated to the city manager's authorized designee. 407 .O~Z. Inspection. The Code Official City may set up a schedule of periodic inspections to insure compliance with this Chapter Section. The Code Official City shall provide reasonable notice to the owner or the owner's agent as to the date and time of the inspection. Each occupant of a dwelling unit shall give the owner or the owner's agent access to any part of such dwelling unit at reasonable times for the purpose of effecting inspection, maintenance, repairs or alterations as are necessary to comply with the provisions of this Ordinance. If any owner, owner's agent or occupant of a dwelling unit fails or refuses to permit entry to the premises under his/her control for an inspection pursuant to this Ordinance'2 the Code Official City may seek a Court Order authorizing such inspection. 407.08. Provisional Licenses. Subd. 1. Eligibility. Licensed multiple dwellings that have generated an average of over 5 police or fire calls per dwelling unit in a preceding six month period as specified below are eligible only for provisional licenses. . A. Police and fire calls that are counted in determining whether a provisional license is required include the following types of calls or events: en calls or events listed in Section 407.10 eii) calls or events categorized as part one crimes in the Uniform Crime Reporting System, including homicide, rape, robbery, aggravated assault, burglary theft, auto theft and arson (iii) calls or events categorized by the police department as miscellaneous juvenile status crimes, liquor offenses or curfew violations; disturbing the peace or harassing communications; property damage; criminal damage to property or trespass; domestic incidents; fire alarms; public disturbance or disorderly conduct; loud party or noise complaints; disorderly juveniles; assault in the fifth degree or non-domestic related assaults. The Hopkins Police Department shall maintain for public inspection a description of the coding system and a list of the codes and crimes included within each of these categories of calls or events. (iv) The Hopkins Police Department may determine that multiple incidents shall be counted as a single call in appropriate cases. B. Calls will not be counted for purposes of determining whether a provisional license is required where the victim and suspect are "Family or household members" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B 01, Subd. 2 (b) and where there is_a report of "Domestic Abuse" as defined in the Domestic Abuse Act, Minnesota Statutes, Section 518B 01, Subd. 2 (a) C. The period of time used to determine whether a provisional license is required is the six-month period ending two months before the commencement of the license term. Subd.2. Certified Managers Required. Provisional licenses shall only be issued for facilities having a manager or managers certified in accordance with Section 407.08. Managers must be resident managers or on site managers who are on site or available 24 hours a day. Subd. 3. Mitigation Plan. The applicant for a provisional license must submit a mitigation plan for Council. review for the license period. The mitigation plan shall describe steps proposed by the applicant to reduce the number of police and fire calls described in Subd.l A. to a level that qualifies for a regular license. The mitigation plan may include such steps as: changes in tenant screening procedures, changes in lease terms, security measures, rules and regulations for tenant conduct, and security personnel. Subd. 4. Council Approval. The application with a proposed mitigation plan will be presented to the City Council together with a recommendation by the City Manager or the Manager's designee as to the disposition thereof. After giving the applicant an opportunity to be heard and present evidence, the Council shall approve, disapprove, or approve with conditions the application and the mitigation plan. If the Council disapproves an application and mitigation plan or approves it with conditions it shall state its reasons for so doing in writing. Subd. 5. Monthly Compliance Report. The licensee shall comply with the mitigation plan as approved or modified by the Council. No later than the tenth day after each calendar month, the licensee shall mail or deliver to the Hopkins Police Department a written report describing all steps taken in furtherance of the mitigation plan during the preceding month. Section 407.09. Manager Certification. Subd. 1. Qualifications. To qualify for a provisional license, the applicant must provide and maintain at least one resident manager or on site managers who are on site or available 24 hours a day and who are certified under this section Subd. 2. Training Program. Persons may be certified as resident or on site managers who successfully complete the training program provided or specified by the Hopkins Police Department. Subd. 3. Licenses may be granted to applicants who are not currently providing a certified resident or on site manager. Licenses may continue in effect on the departure of a certified resident manager, on the condition that a resident manager or on site manager register for and complete the training program as promptly as is reasonably possible. Section 407.10. Conduct on Licensed Premises. Subd. 1. Responsibility. It shall be the responsibility of the licensee to see that persons occupying the licensed premises as well as members of the resident's household or a guest or other person under the resident's control, conduct themselves in such a manner as not to cause the premises to be disorderly. Subd.2. Disorderly Behavior. For the purposes of this section, disorderly behavior may include but is not limited to the following: 1. Illegal activity, including drug-related illegal activity, on or near the said premises. "Drug-related illegal activity" means the illegal manufacture, sale, distribution, purchase, use or possession with intent to manufacture, sell, distribute, or use of a controlled substance (as defined in Section 102 of the Controlled Substance Act r21 V.S.C. 8021) or possession of drug paraphernalia. 2. Acts intended to facilitate illegal activity. 3. Acts of violence or threats of violence including but not limited to discharge of firearms, prostitution, intimidation, or any other breach of the rental agreement that otherwise jeopardizes the health, safety or welfare of the licensee, his agents or tenants. 4. Violation of Minnesota Statute, Section 609.72 (Disorderly Conduct) 5. Violation of Minnesota Statutes 609.74 and 609.745 (Public Nuisance) 6. Violation of Minnesota Statutes 609.66, Subd.1a, 609.67 or 624.713 (Unlawful use or possession of a firearm or weapon) 7. Violation of Minnesota Statute 609.50 (Obstructing Legal Process) 8. Violation of Hopkins Code 2005.01, Subd. 2, Subd. 3, Subd. 4 (Firearms) 9. Violation of Hopkins Code 2005.59 Subd. 1, Subd. 8, Subd. 12 (Nuisances) 10. Violation of Hopkins Code 2005.61 (Noise) Subd.3. First Instance. Upon determination by the city manager that a licensed premises was used in a disorderly manner, as described in Section 407.10., the city manager shall give notice to the licensee of the violation and direct the licensee to take steps to prevent further violations. Subd. 4. Second Instance. If a second instance of disorderly use of the licensed premises occurs within three (3) months of an incident for which a notice in Section 407.10. Subd. 3 was given, the city manager shall notify the licensee of the violation and shall also require the licensee to submit a written report of the actions taken, and proposed to be taken, by the licensee to prevent further disorderly use of the premises. This written report shall be submitted to the city manager within five (5) days of receipt of the notice of disorderly use of the premises and shall detail all actions taken by the licensee in response to all notices of disorderly use of the premises within the preceding three (3) months. Subd.5. Third Instance. If a third instance of disorderly use of the licensed premises occurs within three (3) months after any two previous instances of disorderly use for which notices were given to the licensee pursuant to this section, the rental dwelling license for the premises may be denied, revoked, suspended or not renewed. Subd. 6. Following the hearing, the council may deny, revoke, suspend or decline to renew the license for all or any part or parts of the licensed premises or may grant a license upon such terms and conditions as it deems necessary to accomplish the purposes of this section. Subd. 7. For purposes of this Section, second and third instances of disorderly use shall be those which: (i) occur at the same rental unit; or (ii) involve tenants at the same rental unit; or (iii) involve guests or invitees at the same rental unit; or (iv) involve guests or invitees of the same tenant; or (v) involve the same tenant. Subd. 8. Postponing License Action. No adverse license action shall be imposed where the instance of disorderly use of the licensed premises occurred during the pendency of eviction proceedings (unlawful detainer) or within thirty (30) days of notice given by the licensee to a tenant to vacate the premises where the disorderly use was related to conduct by that tenant or by other occupants or guests of the tenant's unit. Eviction proceedings shall not be a bar to adverse license action, however, unless the licensee diligently pursues them. Further, an action to deny, revoke, suspend, or not renew a license based upon violations of this section may be postponed or discontinued at any time if it appears that the licensee has taken appropriate measures which will prevent further instances of disorderly use Subd. 9. Determining Disorderly Use of a License. A determination that the licensed premises have been used in a disorderly manner as described in Section 407.10. Subd. 2 shall be made upon substantial evidence to support such a determination. It shall not be necessary that criminal charges be brought in order to support a determination of disorderly use, nor shall the fact or dismissal or acquittal of such a criminal charge operate as a bar to adverse license action. under this section. Subd. 10. Enforcement. Enforcement actions provided in this section shall not be exclusive, and the city council may take any action with respect to a licensee, a tenant, or the licensed premises as is authorized by this Code or state law. 407.Q9 n. Revocation Revoking, Suspending, Denying or Not Renewing a License. Subd. 1. The City Council may revoke1the registration of any premises. suspend, deny or decline to renew any license issued under this Section. The Council may revoke, suspend, deny or not renew a license for part or all of a facility. The basis for such revocation, suspension, denial or non-renewal include, but are not limited to, the following circumstances: (a) The registration was procured by misrepresentation of material facts with regard to the premises or the ownership of the premises. (b) The applicant or one acting in his/her behalf made oral or written misstatements accompanying the application. (c) The applicant has failed to comply with any condition set forth in any other permits granted by the City of Hopkins. (d) The activities of the owner/agent create or have created a danger to the public health, safety or welfare. ( e) The pn.~mises residential rental dwelling unit contains conditions that might injure or endanger the safety, health or welfare of any member of the public. (0 Failure to pay any application, penalty or reinstatement fee required by this Section and City Council resolution. (g) Failure to correct deficiencies noted in notices of violation in the time specified in the notice. (h) Failure to comply with the provisions of an approved mitigation plan in the case of provisional licenses. (g) Any violation of this Section. Subd. 2. Regular licenses shall be revoked, if at mid term, or not renewed, if at the end of a term, upon a finding that the residential rental dwelling unites) is only eligible for a provisional license as provided in Section 407.07. Subd. 2.J.. Notification. Before revoking, suspending, denying or not renewing a registration license, the Code Official shall notify the owner or the owner's agent in writing of the basis for the revocation and the date upon which the City Council shall review the request to revoke the registration license. The notice required by this section shall be served upon the owner or the owner's agent at least twenty (20) days before the City Council hearing. Service shall be deemed sufficient if the notice is sent to the owner or the owner's agent by first class u.S. mail at the address provided in the registration license application. The Code Official also shall post the notice in a conspicuous place at the premises at least seven (7) days before the City Council hearing. Subd. J.1. Hearing. The owner or the owner's representative, Code Official and any other person whose interests would be affected by revocation, suspension, denial or non-renewal of the registration license shall be given an opportunity to be heard. Subd. 4. Decision. The City Council shall issue a written decision regarding the request for revocation to revoke, suspend or non-renewal a license no later than the third regularly scheduled City Council meeting following the date of the hearing. The decision shall specify the part or parts of the facility to which it applies. Thereafter, and until a license is reissued or reinstated, no rental units becoming vacant in such part or parts pf the facility may be re-Iet or occupied. Revocation, suspension or non- renewal of a license shall not excuse the owner from compliance with all terms of this Section for as long as any units in the facility are occupied. Subd.5. Re-applying. Upon a decision to revoke, deny or not renew a license, no new application for the same facility will be accepted for a period of time specified in the Council's written decision, not exceeding one year. Such new applications must be accompanied by a reinstatement fee, as specified by Council resolution, in addition to all other fees required by this Section. 407.Q+ 12. Effect of Revocation. , Suspension, Denial, or Non-Renewal. If a registration license IS revoked, suspended, denied or not renewed by the City Council.. it shall be unlawful for the owner or the owner's agent to thereafter permit the occupancy of the then vacant or, thereafter vacated, dwelling units, until such time as a valid rental registrationlicense is obtained for the premises. Issuance of a new registrationlicense after revocation, suspension, denial or non-renewal shall be made in the manner provided for in Section 407.0M. 407.Q.& U. Posted to Prevent Occupancy. Whenever any premises has been denied initial registration license, had its registration licensed revoked, suspended, denied or not renewed or is unfit for human habitation, it shall be posted by the Code Official City to prevent further occupancy. No person, other than the GeOO Official City or his representative, shall remove or alter any posting. The GeOO Official City will post the date the premises residential rental dwelling unite s) shall be vacated and no person shall reside in, occupancy occupy or cause to be occupied that premises until the Code Official City permits it. 407.@ 14. Penalties. A person who violates the provisions of Section 407 is subiect to Section 355 Administrative Penalty Process. Failure to cooperate and comply with Section 355 will result in further legal action in the District Court System. This person is guilty of a misdemeanor. Each day that a violation continues shall be deemed a separate offense. The Code Official City may post the premises residential rental dwelling unite s) by appropriate signs or notices prohibiting occupancy, and may act to cause the premises residential rental dwelling unites) to be vacated or remain vacant until the Code violations are corrected and all penalties are paid. Failure to comply with all terms of this Section during the term of revocation, suspension or non-renewal is a misdemeanor and grounds for extension of the term of such revocation or suspension or continuation of non- renewal, or for a decision not to reinstate the license notwithstanding any limitations on the period of suspension, revocation or non-renewal specified in the City Council's written decision or in Subd. 5 of this Section. 407.15 No Retaliation. No licensee shall evict, threaten to evict or take any other punitive action against any tenant by reason of good faith calls made by such tenant to law enforcement agencies relating to criminal activity, suspected criminal activity, suspicious occurrences or public safety concerns. This section shall not prohibit the eviction of tenants from a dwelling unit for unlawful conduct of a tenant or invitee or violation of any rules, regulations or lease terms other than a prohibition against contacting law enforcement agencies. 407.1Q~. No Warranty by City. By enacting and undertaking to enforce this Ordinance, neither the City nor its Council, agents or employees warrant or guaranty the safety, fitness or suitability of any dwelling in the City. Owners and occupants should take whatever steps they deem appropriate to protect their interests, health, safety and welfare. (This section was added through Ord. No. 95-764) May 8, 2001 REVIEW OF BUDGET GOALS The City of Hopkins is in the process of establishing the year 2002 budget and tax levy goals. To begin with lets look at the 200 I goals and review the progress. Following is a list of goals made for 2001. 2001 BUDGET GOALS (could use the same goals for 2002 or revise them) Maintain quality City services at current levels at an affordable price for residents and commercial/industrial users. · Continue implementing program budgeting to use as a tool for analysis of all programs and services to: . look for ways to reduce dependency on the property tax, . find greater efficiencies in the provision of current services and programs, . compare staffing levels to workloads to assure proper allocation of resources, . create greater linkages between revenues and expenses, to allow for more entrepreneurial approaches to non-essential services. Forecast funding needs and tax implications to assure strong long-term financial stability. Provide adequate funds to meet necessary technology upgrades. Continue policy of not using fund balances for operating expenses. Recognize and award employees that help the City save money. Continue to fully fund capital equipment expenditures through the equipment replacement fund. Continue with the Citizen's Academy to involve citizens in local government through training and education. Adoption and commencement of Hopkins Mission Statement and Vision action steps. Pursue legislation for Food and Beverage tax and collect information on potential utility franchise fees. BUDGET CONSIDERATIONS There are areas to consider that may affect the budget during the next few years. State Tax Reform: > The IlBig Plan" may affect city finances as well as residential and commercial based taxpayers. It is too early in the process to determine how the Governors "Big Plan" will actually affect us but it definitely will. > Property Classification Changes -In the past there has been a tendency to shift some of the tax burden back to residential from commercial/industrial taxpayers. This may continue in the future but it is predicted to continue at a much slower pace then in the past. > Tax Increment Finance - Any changes in property classifications impact property tax generated by TIF districts. Currently the tax generated in the various districts is projected to be sufficient to cover any debt or liabilities created in the districts. > Property Tax Freeze - May be considered in the future as a tool to hold down local government spending. > Assessed value limitation - Implemented in 1997 to limit the increases in a residential property value it essentially shifts tax burdens from high increased value properties to low increased value properties. > State Aid Freeze or Reduction - State aids continue to either stay the same or have been reduced in recent years. This trend will continue into the future with State government wanting local governments to become less reliant on aid for support. We are maintaining basic city services in 200 1. We allocate building maintenance expenditures and equipment expenditures to more accurately reflect program costs. We will continue to work on cost allocations for all programs and funds. Attached is a forecast of general fund expenditures and revenues for the next five years with the associated tax levy's to achieve those levels. The assumptions for the forecasts made are as follows: ~ Current services will be maintained - no elimination or additions to services. ~ A 6% increase in salaries and employee benefits each year respectively. ~ Approximately a 2% increase in materials, supplies and services each year respectively. ~ Approximately a 2.5% increase in chargebacks to special revenue funds, capital improvement funds and enterprise funds. This helps reduce general fund expenditures. ~ The Shady Oak Beach payment of $86,630 is included in the general fund for 2002. This payment will come from reserves where it was originally was budgeted from. ~ Upgrade of heating and ventilating system in 2002 for $25,000 and 2003 for $100,000 in the general fund. ~ Fire station roof repair at $65,000 in 2002, general fund. ~ Valley Park parking addition of $20,000 in 2002, general fund. ~ Items not included yet but requested include: Central Park parking lot improvements - $65,000 Downtown Park replace center concrete and benches - $20,000 Intra-city connections to trail system - $20,000 Downtown Park Stage - $50,000 County Road 3 beautification - $80,000 ADA accessible playground - $5,000 Minnehaha Creek buffer zone - $5,000 ~ Approximately a 6.5% and 7.5% increase in levy for 2002 and 2003, respectively. ~ Intergovernmental revenues stay flat each year. Unknown affects of changes in federal and state governments. ~ Approximately a 20% increase in fines, permits and fees for 2002, with the potential redevelopment of the downtown area and starting Medica project. Continued high revenues in 2003 for Medica project completion. ~ A $65,000 decrease in interest earnings for 2002 budget to accurately reflect actual earnings potential. ~ Approximately a 20% increase in charges for services in 2002 budget to accurately reflect historical collections. ~ Other revenues would remain relatively constant. ~ An average increase in the assessed market value of property of 7%. The city is looking at space needs for the police and fire departments which, if implemented will have an effect on the overall budget and levy for 2004. I have included $25,000 in 2003 and another $25,000 in 2004, to operate the new facility, (this is a guess). Another issue which has risen is an increase in the time line for replacing the radio dispatch system for police and fire. Hennepin County has accelerated its proposed change to 800 mhz to April of 2001. We had not anticipated replacing our system until 2003 or 2004. The county does not anticipate us needing to change in 2001 but it is unknown how long before a change is nessecary'in order to continue communications with Hennepin. The city is also in the process of a pay equity evaluation which could slightly impact the budget in 2002. The major items that could affect the general fund are as follows: Art Center inclusion - $120,000 additional levy Public Works Facility - $70,000 additional levy. 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