HomeMy WebLinkAbout5 - Fire Hall Referendum
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FIRE HALL REFERENDUM
(Finance Committee Report)
A. Committee Members
Carol Scott, Councilmember
Ralph Teschner, Finance Director
Brent Johnson, Volunteer Representative
B. Committee Charge
The finance committee was directed to structure a financing
package that would both be acce~table in terms of available
financial resources as well as l.nsuring the best chance of
success from the stand~oint of voter support. In order to
accomplish this objectl.ve it was necessary to identify a cost
base for the fire hall. The fi~ure utilized for this analysis
was $2,400,000. The assumpt10ns developed hereafter can
easilr be modified to the final amount approved by the City
Councl.l.
C. Alternative Financing strategies
The committee evaluated three primary scenarios with respect
to structuring a referendum bond issue tentatively scheduled
for June 29, 1993. Each option is identified below along with
perceived advantages and disadvantages:
Schedule #1
Referendum Bond Issue Size - $2,400,000.
This option assumes the entire amount of the fire hall
financing to be funded upon the referendum ballot. The
inherent advantages to allowing the full amount to be placed
on the ballot are threefold;
Promotes full disclosure to the public by presenting
the entire picture at the time of votin~.
Advocates the credibility of the city Wl.th respect to
the minimum fire hall expenditure requirement which
has been maintained since the first referendum held in
1991.
Provides the greatest financing flexibility by using
the property tax to distribute 100% of the cost.
The main disadvantage may be the size of the bond issue in
view of the public perception that it simply is too large.
1. )
2. )
3. )
Schedule #2
Referendum Bond Issue Size - $2,150,000.
This option would incorporate a financing combination of the
following 4 sources:
1. General Obli~ation Bonds - $2,150,000
2. Project Contl.ngency Reduction $ 50,000
3. Land Purchase Contract for Deed - $100,000
4. General Fund contribution $100,000
4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372 I Ph. (612) 4474230 I Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
The obvious advantage to downsizing is that by trimming a
quarter of a million dollars, the referendum would lend
itself toward greater public appeal. The most significant
disadvantages would be a leaner building project contingency,
a reduction of the City's general fund balance plus an
increase in the property tax levy associated with the length
of the contract for deed.
Schedule #3
Referendum Bond Issue Size - $1,900,000.
This o~tion would incorporate a financing combination of the
followl.ng 5 elements:
1. General Obli~ation Bonds
2. Project Contl.ngency Reduction
3. Land Purchase Contract for Deed -
4. General Fund Contribution
5. Supplemental Property Tax Levy
- $1,900,000
$100,000
$100,000
$250,000
$50,000
The immediate and most recognizable advantage for this size
is that it provides a bottom line bond issue size. Cutting
one-half million dollars would arrive at the most optimum
size from a property tax sensitivity aspect which would
further enhance the chances of the fire hall referendum.
This translates into a long term property tax liability
reduction.
The disadvantages
magnified to a
supplemental levy
the property tax,
door levy.
D. Conclusion
are the same as the aforementioned, only
larger extent. In addition, while the
would occur only as a one-time addition to
it does take on the appearance of a back
Ultimately, the three most critical factors in ensuring the
success of the fire hall referendum will be the ~ublic
perception of the need for this particular fac1lity,
developin~ a successful marketing strategy and pricing the
product rl.ght.
While any of the above vartiations may be incorporated to
reflect a more desired balanced financial package, it is
important that the final financing method be communicated to
the public so that a full understanding by the citizenry is
achieved.
FIRE REFERENDUN - WORK PR06RAN - FEBRUARY 4. 1993
ACTION PlU
Project:
COllittee AI.) Structure Work ProQral
*hy l.
Al B.
Ralph T.
Identify COllittees/Participants
Assign Tasks/Tilefrale in Draft
Work Pian
Distribute Work Plan to All
COllittee lelbers
Prelilinary Report by COllittees
Nonitor COllittee Report
and Coordinate All Activities
2.) ReferenduI Tilefrale
(45) County Notification Deadline
ReferenduI Election Date
land Purchase:
COllittee B 1.) Coordinate land Purchase(s)
*John F.
Doug H.
Bob B.
Identi fy Si tes
Negotiate for Site(s)
Preli.inary Report to Council
Coordination ulth Financing
COllittee C
Final Negotiations
Council Approval of land Purchase
Financing:
COllittee C 1.) Structure FinancinQ PackaQe
*Ralph T.
Carol S.
Develop Alternative Financing
Strate9ies
Prelillnary Report to Council
ReferenduI Final Alount Deterlination
Architectural
Revieu:
COllittee 0 1.) Revieu Architectural Plans
alee A.
6ene W.
&erry N.
Brent J.
Revieu Current Plans
Revise Plans for Site(s)
Prelilinary Report to Council
Coordinate Plan Revision with
Marketing
Coordinate Plans uith Financing
COllittee , P.R. COllittee
Public Relations:
COllittee E 1.) Coordinate All Public Relations Plans
Al B.
ToI l.
Chris J.
*Joe A.
Critique Last Year's ReferenduI
Calpalgn
Identify P.R. Activities to Date
Create P.R. Calpaign for 1993
ReferenduI with Tilefrale and
ley P.R. Tools
prelilinarr Report to Council
and Reques for Contingency Funds
February
March
April
May
June
H=H
(2-16)
---------------(3-1)
---------------------------------------------(Ongoing)
-----------------------------------(5-7)
---------------------------------------------(6-22)
(2-5)
(2-16)
---------------(3-1)
---------------------------------------------(Ongoing)
-------------------------(April)
-------------------------(April)
(2-16)
---------------(3-1)
---------------(3-15)
(2-16)
(2-16)
---------------(3-1)
-------------------------(April)
-------------------------(April)
(2-16)
(2-16)
(2-16)
---------------(3-1)
*CHAIRPERSON (Chairpersons are responsible for calling all leet~ngs and cOlpleting the activities.)
"
,
Qngoing Community Relations:
Community relations is a critical portion of the Prior Lake Volunteer Fire
Department's referendum efforts. As in any Public Relations effort, the goal is
to heighten the public's awareness of the department, services rendered,
and the firefighters' dedication to the community. If successful this effort will
build a solid base of community support for the upcoming referendum.
Already Underway:
Signs - Neighborhood Firefighter
This program was enacted last fall to identify more than 50 active and
retired firefighters as the " person living next door" or "down the street. "
This program has already resulted in several positive calls to the fire
station.
Newspaper
Chief's column. . . is being tailored to specific safety tips and issues
directed towards the upcoming referendum.
Spot News (New) . . . Each week the fire calls are reviewed to identify
those which appear newsworthy. Details of these calls are then shared
with reporters for The American for consideration. Photographs are
provided when available. When successful, this increases the amount of
media exposure that the Fire Department receives. This will increase
interest for recruiting.
Alarms. . . As of March 1st., the Prior Lake American will receive report
of all fire calls that the Prior Lake Fire Department receives.
School Programs
As Spring arrives, the City's schools prepare for severe weather, fire
drills, and other school and home safety programs. The Prior Lake
Volunteer Fire Department is preparing a complete school program
campaign which includes:
Demonstrations & talks
Subject speCific literature and materials
Equipment demonstrations
Scout Programs (NEW)
The Boy Scouts of America has a merit badge program which include
first aid, fire safety, water safety, and community service. The Prior
Volunteer Lake Fire Department will be in contact with the Boy Scout
Troops of Prior Lake to offer a prepared merit badge program.
Senior Volunteers (New)
This program will recruit seniors in the community, provide training in fire
safety instruction, and set up a program for them to assist in school
programs, Boy Scouts, and other community activities.
Fire Department Dance (March 20th)
This year's dance will recognize retired members of the Fire Department
by city officials and Fire Department officers.
A "Volunteers for the Referendum" sign-up campaign will begin with a
display and sign-up booth.
Old Timers Night (March 26th.)
The fire house will be open to all past members of the Fire Department so
that they can share their stories over eats and a few games of cards.
This is a tradition that will have a few added features for our best
supporters.
Day Care Inspections (On going)
The Fire Department will inspect Day Care Centers within the City before
June first. Literature. demonstrations. and other materials will be added
as an important part of the program.
New Programs:
Signs (May 1st.)
As the city procures land for the new fire station (s), signs will be placed
on each of the sights announcing "Future home of the Prior Lake Station
#1" or "Prior Lake Satellite Station #2).
3- Night CPR Class
EMT trained firefighters have volunteered their time to offer a CPR class
at no cost other than the American Red Cross registration costs. This will
allow every member of the community who wishes to learn CPR. Should
someone not be able to afford this program the Fire Department will pick
up the fee.
1 Night First Aid Class
(same as above)
Home Inspections
During recruiting month, members of the fire department will provide
home inspections which include smoke alarm checks (with free
replacement batteries, if needed), certificates for discounts for recharging
fire extinguishers, and informative literature for the whole family.
Recruiting Cam~
Recruitment of new firefighters offers a prime opportunity for community
relations, identification of friends of the Fire Department, and distribution of
non referendum literature to every home in the City.
Starting with a training session on March 25th and continuing on for the
next month, every home will be contacted by a firefighter using a walk-around
sheet. Recruitment literature will be left behind. Those homes that appear to
be in favor of helping the Fire Department in future programs will be identified
on the walk-around sheet for use in the referendum effort.
Training Session (March 25)
A two hour training session will be held in the fire hall on Thursday
evening, March 25th. Walk-around sheets literature will be distributed.
Every firefighter will be coached in the message to be carried, information
to collect, and preparation of their reports.
Open House (to be determined)
An open house will be scheduled for late Spring to invite the community
to visit the old station, view the equipment, and partake in training and
demonstrations.
Database
Voter registrations. walk-around reports, and volunteer sign-up sheets will
be used to compile a data base that will allow targeted campaigning for
recruiting and referendum. This is necessary to insure enough votes to
pass a referendum ( estimated at 1,500).
~. ." .4 4-."'\....... ..~ _' ~ ~ ~ ..f .,'1 ~~;
Referendum:
The referendum campaign is based upon the community relations and
recruiting efforts. Community awareness and support is key to passage of a
referendum. In the preceding elements of the campaign, you will notice an
underlying theme of · your neighbors, your friends. ·
This portion of the program is aimed at identifying those who are friends
of the Prior Lake Volunteer Fire Department and asking them to take action,
i.e. passage of the referendum. The information and need portion of this
effort is to substantiate that which has already been accepted by the
community and to validate their yes votes.
Referendum:
Announcement Event (Mid April)
A kick-off event will be held with city officials, department heads,
community leaders, and members of the Fire Department kicking off the
referendum. This event should be made as a photo/story opportunity for
the newspapers etc.
Brochure I (recruiting)
A pocket brochure telling the history of the Prior Lake Volunteer Fire
Department. various jobs within the department, requirements to become
a member, and the savings that this volunteer work provides the
community in real costs and insurance costs. It will end with a strong
call to volunteer.
Brochure II (Referendum)
This 8 1/2 X 11 inch four- page. two-color brochure will outline the
benefits that the Prior Lake Volunteer Fire Department provides the
community. It will include savings to the citizens and tax base and
comparisons to other communities. This message will clearly define the
need for a new station(s) and the savings to the community if the vote is
yes.
Wavelength (May Issue)
An article should be included in the Wavelength in time to state the
City's need for an improved fire department.
Paid Advertising (2 weeks preceding the referendum)
Display advertising or an insert is being considered for the two weeks
preceding the referendum.
Speakers Program
A 20-minute program is being prepared for use at community groups.
These include:
Chamber of Commerce
PL VFW
Rotary Club
Lions Club
Optimist Club
Others
Phone Campaign
Volunteers / friends of the Prior Lake Volunteer Fire Department will man
telephone lines the week preceding the referendum. These calls will
target those households that have been identified as friendly to the
cause to insure the votes needed for passage. This is to contain costs
and reduce the likelihood of confrontation.
Others Under Consideration
Signs for yards and businesses
Bumper Stickers
Weekend handshaking at key activities
Involvement of Community Leaders
Respectfully Submitted.
March 1. 1993
Allen A. Borchardt. Jr. - Fire Chief
..
0r
\I
Thomas R. Kedro'ki. - Councilman
Joseph M.D. Adams. Chairman