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2020.10.20 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: October 16, 2020 City Council Work Session Agenda October 20, 2020 6:15 p.m. Council Chambers/Zoom Meeting Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at ______ p.m. on October 20, 2020 in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. I. Attendance Council Members Staff . ____ Adams ____ Norris ____ Banks ____ Therres ____ Budziszewski ____ Sutter ____ Deshler ____ McGann ____ Kiser ____ LaRoche ____ Parsons II. Agenda The purpose of the work session is to discuss the following agenda items: 1. 2021-2022 budget review. 2. Blue Line Extension Corridor Management Committee update. III. Adjournment The work session adjourned at ______ p.m. *Denotes no supporting information included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531- 1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. October 20, 2020 Auditors recommended doing budget amendment for Internal Service Funds Net impact to budget is zero Property tax revenue will be reallocated, and department expenditures will be adjusted 2021 –2022 budget reflects this accounting change Assuming a normal return to work in 2022 Council will be requested to consider budget amendment on November 17th Revenue changes 2020 October Actual 2020 Budget 2020 Projection 2020 Increase (Decrease)Explanation Intergovermental School Resource Officer 10,306$ 33,018$ 10,306$ (22,712)$ Due to COVID the School District is not providing reimbursement Fines and forfeits 92,923 275,000 110,000 (165,000) Reduction due to COVID short staffed, no dedicated traffic officer and the climate of policing Fines - liquor and tobacco - 2,750 - (2,750) No compliance checks competed due to COVID and the tobacco law change Grants - bullet proof vest - 12,000 4,000 (8,000) Permits 309,072 559,500 443,300 (116,200) Based on 2020 trend Housing - rental licensing 172,341 180,000 187,600 7,600 Based on 2020 trend Fees - planning and zoning 2,085 7,000 2,700 (4,300) Based on 2020 trend Fines - administrative 52,073 25,000 66,700 41,700 Based on 2020 trend Recreation 125,139 621,575 127,716 (493,859) COVID Total Revenue Increase (Decrease)763,939$ 1,715,843$ 952,322$ (763,521)$ Expenditures Community Development Contractual services 21,212$ 40,000$ 30,012$ (9,988)$ Electric permit inspections Supplies, repairs and fuel 1,190 3,500 1,942 (1,558) Based on 2020 trend Training and travel 1,364 2,100 1,826 (274) Recreation - Professional services 16,232 15,200 19,000 3,800 Rentals 17,281 10,000 19,000 9,000 COVID - portable toilet cleaning Supplies, advertising and misc 12,426 24,100 19,475 (4,625) Recreation programs 58,381 193,633 87,989 (105,644) COVID Pool 300 184,793 300 (184,493) COVID - pool closed Police - overtime 126,266 130,000 168,500 38,500 Total Expenditures Increase (Decrease)254,652$ 603,326$ 348,044$ (255,282)$ Net General Fund projected shortfall from 2020 budget 508,239$ Continue two-year budget and financial planning cycle started with 2019-2020 budgets Maintain current service levels with minimal impact to residents and taxpayers while continuing to implement the Council’s four priorities Continue to fund capital needs so debt won’t be needed for fleet, building or equipment purchases or replacements Continue to keep enterprise (utility) funds solvent with modest utility rate increases Assuming a normal return to work in 2022 2020 Levy 2020 % Change 2021 Proposed 2021 Increase (Decrease) 2021 % Change 2022 Proposed 2022 Increase (Decrease) 2022 % Change General levy 10,143,522$ 4.40 %12,084,489$ 1,940,967$ 19.14 %12,740,995$ 656,506$ 5.43 % Capital improvements and Internal Service levy Police Equipment Revolving 154,938 0.00 158,037 3,099 2.00 161,197 3,160 2.00 Park Improvement 358,914 44.54 480,511 121,597 33.88 606,999 126,488 26.32 Street Construction 110,144 0.00 114,550 4,406 4.00 119,132 4,582 4.00 Internal Service levy Information Technology 159,179 0.00 - (159,179) -100.00 - - - PIR - 0.00 - - - - - - Buildings 1,072,295 83.02 - (1,072,295) -100.00 - - - Fleet 85,680 0.00 - (85,680) -100.00 - - - Total Capital Improvement and Internal Service levy 1,941,150 44.42 753,098 (1,188,052) -61.20 887,328 134,230 17.82 EDA 282,744 0.00 300,000 17,256 6.10 310,000 10,000 3.33 12,367,416$ 9.03 %13,137,587$ 770,171$ 6.23 %13,938,323$ 800,736$ 6.10 % % Increase from prior year Amount Percent Levy Increase Amount Percent Levy Increase Operations 656,506$ 5.00%Licenses and permits (45,900)$ -0.35% Capital 134,230 1.02%Charges for services 17,142 0.13% EDA 10,000 0.08%Miscellaneous modifications 6,810 0.05% Total Levy Increase 800,736$ 6.10%Administrative transfers in 25,683 0.20% Wages and Benefits 455,811 3.47% Assessing - County Assessor contract increase 7,000 0.05% Finance - professional services 5,000 0.04% Legal Services 7,344 0.06% Police - contract services (custodial)12,500 0.10% Elections (includes wages and benefits)5,000 0.04% Community Center - biennial refinishing of gym floor 6,400 0.05% Insurance 3,406 0.03% Wage and benefit contingency (67,500) -0.51% Street Maintenance - salt 7,000 0.05% West Metro Fire District 52,867 0.40% Internal Service Fund allocation increase 151,387 1.15% Miscellaneous modifications 6,556 0.05% Capital increases 134,230 1.02% EDA 10,000 0.08% 800,736$ 6.10% 2019 2020 2021 2022 Actual Budget Proposed Proposed REVENUES Property taxes - operations 9,743,618$ 10,289,022$ 10,768,994$ 11,378,421$ Special assessments and other 52,000 52,000 Property taxes - Internal allocations 1,362,495 1,409,574 Licenses and permits 835,711 853,810 896,860 850,960 Intergovernmental revenues 1,907,764 1,787,339 1,777,489 1,777,489 Charges for services 811,940 891,402 846,711 863,853 Fines & forfeits 287,985 307,000 275,000 275,000 Investment income 116,464 94,512 125,000 125,000 Miscellaneous 69,675 82,683 68,000 68,000 TOTAL REVENUES 13,773,157 14,305,768 16,172,549 16,800,297 2020 2021 2020 to 2021 2020 to 2021 2020 to 2021 2020 to 2021 Increase % Increase Increase w/o % w/o IFS Budget Proposed (Decrease)(Decrease)ISF Allocation Allocation EXPENDITURES General government 2,124,193$ 2,267,228$ 143,035$ 6.73%64,973$ 3.06% Public safety 7,672,996 8,417,237 744,241 8.84%200,054 2.61% Community Development 687,370 707,745 20,375 2.96%(6,772) -0.99% Public works 2,562,263 3,071,311 509,048 16.57%36,848 1.44% Recreation 1,733,204 2,188,530 455,326 20.81%75,192 4.34% Interfund services transfer in 474,258 479,502 5,244 1.11%5,244 1.11% TOTAL EXPENDITURES 14,780,026$ 16,652,051$ 1,872,025$ 11.24%370,294$ 2.51% 2019 2020 Adopted 2021 Proposed Actual Budget Budget Budget Revenue Property Taxes and Special Assessments 281,635$ 288,399$ 300,000$ 310,000$ Charges for Services - - - - Miscellaneous 2,000 28,000 - - Interest Income 93,375 12,000 10,000 8,000 Total Revenue 377,010$ 328,399$ 310,000$ 318,000$ Expenditures Personnel services 263,188$ 316,203$ 297,580$ 308,214$ Professional Services 15,370 41,000 20,000 20,000 Contractual Services 56,075 49,200 10,000 10,000 Internal Service Fund Charges - - 4,568 5,186 Printing 244 500 500 500 Miscellaneous 102,632 4,400 39,150 40,950 Transfer out 1,150,000 - - - Prior period adjustment 295,000 - - - Total Expenditures 1,882,509$ 411,303$ 371,798$ 384,850$ Net Revenue Over (Under) Appropriations (1,505,499)$ (82,904)$ (61,798)$ (66,850)$ Fund balance, January 1 5,436,833$ 3,931,334$ 3,848,430$ 3,786,632$ Fund balance, December 31 3,931,334$ 3,848,430$ 3,786,632$ 3,719,782$ 2022 Proposed Total General Fund Increase over 2020 579,072$ Non-tax Revenue increases (decreases)Expenditure increases (decreases) Special assessments (18,500)$ Wages and benefits 338,301$ Delinquent property taxes and interest (28,000) Police K-9 overtime 7,100 Charges for services (47,192) Assessing contract 26,000 Licenses and permits (66,950) Finance professional services 10,000 (4,650) 9,475 School resource officer (33,000) Police mental health 35,000 Fines and forfeits (32,000) Elections (112,596) SAC charges (25,000) Streets - salt (7,000) Antenna charges 17,000 Miscellaneous reductions (21,406) City provided services to others (10,500) West Metro Fire District 58,250 Interest earnings 30,488 Total Expenditure increases (decreases)343,124$ Recreation (16,385) Miscellaneous modifications (6,503) Total General Fund Increase over 2020 579,072$ Transfers 5,244 Total Non-tax Revenue increases (decreases)(235,948) Intergovernmental revenue (bulletproof vests and post-board reimb) Human resources - professional services and service contracts Memorandum DATE: October 14, 2020 TO: Mayor and City Council FROM: Anne Norris, City Manager SUBJECT: Blue Line Extension Corridor Management Committee Update ____________________________________________________________________ The Blue Line Extension Corridor Management Committee (CMC) met on October 8. Governor Walz attended the meeting to express his support for the Blue Line Extension as a light rail line and to update the Committee on his opinion that it is time to look at an alignment that is not within the BNSF right-of-way. After the Governor’s comments, the Committee discussed public input in considering alternative alignments. Mayor Adams and city staff attended the meeting and will provide additional information on the CMC meeting at the October 20 work session.