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INFORMATION #2 08-19-2002TO~ FROI~I: DATE~ SUBJECT: MEMORANDUM Mayor and Council Lori Johnson, Finance Director August 19, 2002 City Charges to Independent School District #728 There has been considerable discussion recently regarding the fees the City of Elk River charges I.S.D. 728 (School District) for various services. Much of the information that has surfaced appears to be incorrect or incomplete. In an effort to provide correct information, the finance department has gathered data on all of the payments made by the School District to the City according to our records. In calendar year 2001, and so far in 2002, there have been five main items for which the School District has been charged: 1. Police liaison services. 2. Police security. 3. Cable TV production (broadcasting School Board meetings). 4. Ice rental (use of the ice arena for school hockey programs). 5. Fuel purchased by the school maintenance department. The School District has not paid for the use of any park, recreation fields, or shelters, including Lions Park Center. A breakdown of payments for calendar year 2001 and January through June 2002 is as follows: Police Liaison $ 43,000.00 $ 21,500.00 Police Security 5,317.50 1,796.50 Cable TV Production 3,552.50 1,655.00 Ice Rental 40,088.75 18,888.75 Purchased Fuel 30,527.80 10,882.82 Facility Use Fees -0- -0- Below you will fred a brief description and some additional information relating to each of the above categories for which the City charged the School District. SchooI Fees August 19, 2002 2 Police Liaison Services Police Chief Tom Zerwas and Assistant Chief Jeff Beahen have provided considerable information on this topic akeady so I will not go into great detail. As you know, the School District and the City entered into an agreement in 1999 regarding the payment for liaison services. Using that formula for the year 2000, the School District commitment was $43,000. Even though the agreement states that the amount may increase based on student population and the crime levy, no adjustment has been made. Prior to this agreement, the School District paid a larger share of the program's cost. Police Security The School District requests that the police provide security service at numerous school functions, including athletic, extracurricular, and special events. In addition, the City provides traffic control assistance on School Street at the end of each school day to alleviate the congestion caused by students leaving the school parking lot. The City charges per hour for services as requested by the School District. In no case does the City charge for services unless they are requested and approved by school officials. In addition, the City provides a juvenile liaison officer free of charge at some school events. All security for high school hockey games is provided by the City as part of the ice rental fee and is not charged directly to the School District. Security services are charged at a rate of $41.00 per hour, which is the average overtime rate (since all of these hours are outside of regular duty) for a police officer, including benefits. The City is simply covering its costs and passing them through to the School District for these services. For traffic control services, the City charges $10.00 per day for Community Service Officer Bob Swenson's time to direct traffic. Cable TV Production The School District requested use of the City's council chambers for School Board meetings, so that the meetings could be broadcast on cable TV. The City provides production staff for all School Board meetings held in the council chambers. The City charges $50.00 per hour for production services and use of the council chambers. Initially the fees charged were lower; however, City staff found that the wear and tear on the council chambers and equipment were far more than expected due to the number of citizens who attend the School Board meetings. As you know, this room is not designed to accommodate the number of citizens in attendance at some of the School Board meetings. Ice Rental Both of the boys and girls school hockey teams use the City's ice arena for practice and games. For that service the City charges an ice rental fee and receives part of the admission revenues. The School District has also rented the arena for dry floor events. Since the amount is so minor it has been included in with Ice Rental in this memo. As you know, the ice arena fund is annually subsidized by the City's General Fund. In addition, capital outlay costs, such as a new Zamboni and matting in the locker rooms, have been paid for through other City funds. Obviously ice rental fees and other fees generated by the arena do not cover the costs to run the ice arena. The City certainly could justify increasing fees charged to the School District and other users, but has chosen not to. City Council has consistently approved subsidizing this facility and based on projections will need to continue to do so in the future to keep the arena operational. Schoo/ Fees ~lugust 19, 2002 Purchased Fuel The City's public works department buys fuel in bulk and has a fuel dispensing system that allows both Sherburne County and the School District to purchase fuel for its maintenance equipment at a reduced cost. Based on information from Phil Hals, the School District is able to purchase fuel for all of its maintenance vehicles at approximately fifteen cents per gallon less than it would if it purchased fuel at a local station. The City provides this service merely as a goodwill gesture of convenience to Sherburne County and the School District. Facility Use Fees Based on information from Michele Bergh, the School District has not paid for use of any of the City's parks, athletic fields or other recreational facilities. Based on City policy, the approved fees have been requested from the School District whenever a reservation request was made; however, the School District has not paid the requested fees. The City does have a formal agreement with the high school ski team whereby the ski team uses Woodland Trails Park for daily practice and holds five school races at the park. The City provides the grooming equipment and staff to groom the trails. The ski team has entered into a formal agreement allowing the ski team to contribute fifty hours of in-kind service in lieu of paying $500 for use of the park for a full ski season. The ski team has consistently chosen to provide in-kind services and, in fact, has provided far more than the fifty hours of required in-kind service. Park Commissioner Dave Anderson said this is the only in-kind agreement that currently exists. The cross-country ski team also uses Woodland Trails Park as a training facility and holds one annual race in September. The cross-country team has not paid for use of Woodland Trails Park. Finally, I've attached copies of some invoices for services that have been charged to the School District so that you can see what the actual invoices look like. Also, some of the fees charged to the school district are based on the fee schedule approved by the City Council each year. If you would like a copy of the fee schedule, please contact me. Hopefully this information will provide the detail you need for a discussion on fees charged to the School District. If in your discussions with school officials there are any questions about any of the fees charged to them, please have them provide their documentation to me so we can review the charges. Of course, please feel free to contact me if you need additional information or have questions.