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2021.04.20 Work Session Packet (1st) 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: April 16, 2021 City Council First Work Session Agenda Tuesday, April 20, 2021 6:30 p.m. Council Chambers/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held on Tuesday, April 20, 2021 at ______ p.m. electronically via Zoom and in the Council Chambers at City Hall, 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff ____ Adams ____ Norris ____ Banks ____ Therres ____ Budziszewski ____ Gilchrist ____ Cummings ____ Larson ____ Kiser ____ Revering ____ LaRoche ____ Serres ____ Parsons II. Agenda The purpose of the work session is to discuss the following agenda item: 1. West Metro Fire-Rescue District quarterly update and 2022 budget preview. III. Adjournment The work session adjourned at ______ p.m. 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. 1 West Metro Fire-Rescue District April 19, 2021 Council Update ADMINISTRATION/OPERATIONS REPORT Sarah Larson, Fire Chief 2 Calls for Service Report January 1 – March 31, 2021 Total Calls for Service 384 Estimated fire loss $12,090 January 1 – December 31, 2020 Total Calls for Service 1828 Estimated fire loss $1,313,433 Crystal 781 New Hope 983 Mutual Aid 64 Not responded to per COVID-19 Protocols 178 Duty Crew The department transitioned back to normal response on April 1, 2021. With the end of our duty crews, we have gone back to our normal operating model (with some remaining COVID precautions) so this means we are back to having our full call & drill requirements, these are a minimum of 40% of all fire calls for their stations and all-calls & a minimum of 6 drills per quarter. Civil Unrest We assisted the police in both cities during the civil unrest that stemmed from an officer involved shooting in Brooklyn Center by putting crews in place to cover medical calls. We also sent an engin e and chief officer as part of a task force (2 engines, a ladder, an ambulance, and security team) to respond to calls for service in Brooklyn Center that they could not cover with their own resources. Engine Development Project A survey was sent out to the entire department looking for their feedback on a number of different design features of the new engines and whether they would be interested in being on the design team. 3 Eighteen firefighters/officers were chosen to participate and were broken down into 5 groups to investigate the following design areas: 1. Hand Tools 2. Medical Equipment 3. Lighting 4. Power Tools 5. Hose and Nozzles The design teams are tasked with researching their respective areas for best practices, durability, ease of maintenance, and fire ground function. We than bring the whole team together to incorporate and discuss these recommendations and the truck design. Once this work is done, specifications will be developed and should be presented to the WMFRD Board of Directors at their July meeting. 2020 Audit MMKR was on sight the week of March 8, 2021 to complete the 2020 audit. Audit Opinion and Findings Based on the audit of the District’s financial statements for the year ended December 31, 2020: • An unmodified opinion was issued on the District’s basic financial statements. • No deficiencies were reported involving the District’s internal control over financ ial reporting considered to be material weaknesses. • The results of testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • The results of testing disclosed no instances of noncompliance with Minnesota la ws and regulations. Recommendation Since 2016, the District has allocated the investment income from its pooled cash and investments between funds based on fixed percentages. The percentages used for this allocation do not accurately represent the respective funds' changing proportionate share of the pooled cash and investments year-to-year, and exclude some funds with positive cash balances from the allocation altogether. We recommend that in the future, the District allocate investment income from pooled cash and investments to all funds participating in the pool, based on each fund's respective current year average cash and investment balance in proportion to the pool total. FEMA Public Assistance (PA) Grant- To date we have submitted 5 FEMA Public Assistance grants related to COVID-19 for a combination of unbudgeted staff hours, personal protective equipment and disinfecting supplies. Three of these grants have been paid for a total of $211,414.62. One more of these grants have been obligated by FEMA and we are awaiting their funding to be deposited into our account. This grant is for unbudgeted Covid-19 staffing, and total $135,909.01 The fifth grant was recently submitted for unbudgeted Covid-19 staffing. This grant is for the amount of $95,370.84. 4 All five of these grants represent Covid-19 related costs for 2020 for a total Public Assistance funding of $448,584.88. In 2021 we will continue to track expenses related to Covid-19 and submit grant projects as needed. At minimum, there will be one more grant submitted for unbudgeted Covid -19 staffing in 2021. Home Inspection Program We began doing home safety surveys again at the beginning of April. We currently have 8 scheduled and our goal is to complete 30 in 2021. West Metro Fire PROPOSED 2022 BUDGET West Metro Fire Proposed 2022 Budget Timeline February 24 Preliminary 2022 Budget Presented to City Managers March 18 Revisit 2022 Preliminary Budget with the City Managers April 14 Present Preliminary 2022 Budget to Board of Directors April Present Preliminary 2022 Budget to Councils May 12 Revisit Preliminary 2022 Budget with Board of Directors July 14 Approve 2022 WMFRD Budget August Councils Approve 2022 WMFRD Budget West Metro Fire Proposed 2022 Budget 2022 Preliminary Budgets and Contributions 2022 2021 General Operating Budget $2,208,500 $ 2,120,450 Capital Fund Contribution $250,000 $ 230,000 Special Revenue Pension Fund Contribution $200,000 $180,000 Special Revenue Insurance Fund Contribution $10,000 $ 30,000 Special Revenue Compensated Absences Fund Contribution $10,000 $10,000 Tower Lease $103,600 $103,600 Total $2,782,100 $2,674,050 West Metro Fire Proposed 2022 Budget Proposed increase to the cities’ contributions is $108,050 over the 2021 contributions or 4.04%. This is an increase of $42,190.92 or 3.2% for Crystal and an increase of $65,859.08 or 4.9% for New Hope. The general operating budget increase is $88,050 or 4.15%. The driving force of this increase is salaries, PERA, workers comp insurance, health insurance and communications. This includes a planned $20,000 increase to the capital plan contributions that offsets a deficit from occurring. With a $20,000increase per year through 2022 the capital plan is fully funded. This includes a $20,000 increase to the special pension fund. The total pension liability in 2022 is potentially $518, 404.17. The state aid contributed in 2020 was $263,162. If this stays the same it will leave a potential balance due of $255,242.17. The $20,000 increase is needed to maintain the fund balance in this account. There is a $20,000 decrease to the special revenue insurance fund. West Metro Fire Proposed 2022 Budget Changes to General Operating $822,000 61500 -Regular Salaries $37,000 increase. Preliminarily budgeting for a 3% COLA but this will be evaluated as the cities negotiate their contracts. This also includes comp payout for non-exempt employees. $490,000 62000 -Part -Time Salaries $30,000 increase. This includes all POC positions and preliminarily budgeting for a 3% COLA but this will be evaluated as the cities negotiate their contracts. $145,500 62200 -PERA $4,200 increase based on full-time salaries. These full-time employees do not earn relief association pension. $49,500 62800 -Social Security & Medicare $2,900 increase based on salaries. West Metro Fire Proposed 2022 Budget Changes to General Operating $99,000 63800 –Health Insurance $10,450 increase based on a 10% increase and an additional employee taking the benefit. $134,000 64500 -Workers Comp Insurance $24,000 increase based on 2021 rate increase. $9,000 74000 -Operating $1,000 decrease based on historical data. $6,000 80600 -Legal Fees $1,000 decrease based on historical data. $25,000 80600 –Medical Exams $5,000 decrease based on no recruitment. $120,000 81800 -Communications $5,000 increase based on expected increases to expenditures for LOGIS and Hennepin County Radio. West Metro Fire Proposed 2022 Budget Changes to General Operating $21,000 83200 -Electric $4,000 decrease based on historical data and lighting upgrade to LED. $5,500 83400 –Water/Sewer $500 decrease based on historical data. $20,000 83600 -Gas $2,000 decrease based on historical data. $24,000 84400 -Equipment Repairs $4,000 increase based on historical data. $41,000 84600 -Vehicle Repairs $5,000 increase based on historical data. $3,000 85400 -Office Equipment Rent $1,000 decrease based on historical data. $0 Reserve $20,000 decrease based on having the fund balance rebuilt in 2021. West Metro Fire Proposed 2022 Budget Capital Plan 2022 –Cities’ Contributions 250,000 2023 –Cities’ Contributions 250,000 Beginning Fund 773,845 Beginning Fund 748,845 Committed -495,000 Committed -425,000 Expenditures -275,000 Expenditures -322,500 Ending Fund Balance 3,845 Ending Fund Balance 1,345 West Metro Fire Proposed 2022 Budget Capital Plan 2024 –Cities’ Contributions 250,000 2025 –Cities’ Contributions 250,000 Beginning Fund 676,345 Beginning Fund 643,845 Committed -390,000 Committed -370,000 Expenditures -282,500 Expenditures -267,500 Ending Fund Balance 3,845 Ending Fund Balance 6,345 West Metro Fire Proposed 2022 Budget Capital Plan 2026 –Cities’Contributions 250,000 Beginning Fund 626,345 Committed -440,000 Expenditures -165,000 Ending Fund Balance 21,345 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 782 920 p = municipality's population (2010 census)22,151 20,339 v = municipality's taxable market value in millions 2,123 2,106 A = district's avg. calls over 5 years no mutual aid 1,702 P = district's population (2010 census)42,490 V = district's taxable market value in millions 4,229 Percentage a/A 45.9459%54.0541% Percentage p/P 52.1323%47.8677% Percentage v/V 50.2010%49.7990% 49.4264%50.5736%100.00% 100.0000% Required contributions from cities $1,321,686.70 $1,352,363.30 $2,674,050.00 Monthly contribution $110,140.56 $112,696.94 (1) Average calls based on calls for the years 2015 through 2019 without mutual aid. (2) 2020 taxable market values from Hennepin County report dated 09/06/2019. Contributions from Cities Set to Equal: 2021 General Fund Operating Budget $2,120,450 2021 Capital Plan Budget $230,000 2021 Pension Special Revenue Fund $180,000 2021 Insurance Special Revenue Fund $30,000 2021 Compensated Absences Special Revenue Fund $10,000 2021 Aerial Lease $103,600 2021 Total Amount to be Contributed from Cities $2,674,050 WEST METRO FIRE RESCUE DISTRICT Cost Sharing Formula Preliminary Calculation in 2020 for use in the 2021 Budget ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 803 965 p = municipality's population (2010 census)22,151 20,339 v = municipality's taxable market value in millions 2,214 2,257 A = district's avg. calls over 5 years no mutual aid 1,768 P = district's population (2010 census)42,490 V = district's taxable market value in millions 4,471 Percentage a/A 45.4186%54.5814% Percentage p/P 52.1323%47.8677% Percentage v/V 49.5191%50.4809% 49.0233%50.9767%100.00% 100.0000% Required contributions from cities $1,363,877.62 $1,418,222.38 $2,782,100.00 Monthly contribution $113,656.47 $118,185.20 (1) Average calls based on calls for the years 2016 through 2020 without mutual aid. (2) 2021 taxable market values from Hennepin County report dated 01/05/2021 Contributions from Cities Set to Equal: 2021 General Fund Operating Budget $2,208,500 2021 Capital Plan Budget $250,000 2021 Pension Special Revenue Fund $200,000 2021 Insurance Special Revenue Fund $10,000 2021 Compensated Absences Special Revenue Fund $10,000 2021 Aerial Lease $103,600 2021 Total Amount to be Contributed from Cities $2,782,100 WEST METRO FIRE RESCUE DISTRICT Cost Sharing Formula Initial Preliminary Calculation in 2021 for use in the 2022 Budget