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06.07.21 Work Session Packet
CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA June 7, 2021 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Dakota Broadband Board Update(60 Minutes) (b) 2022 Budget and Financial Plan Discussion (30 Minutes) 4. CITY ADMINISTRATOR UPDATE (a) Proclamations Discussion (15 Minutes) S. ADJOURN CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 moo Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Dakota Broadband Board Update(60 Minutes) DATE: June 7, 2021 INTRODUCTION Dakota Broadband Board Executive Director Carah Koch will be in attendance at the work session to provide a background on whatthe DBB does and an update on current activities. DISCUSSION The Dakota Broadband Board (DBB) was formed in 2017 through a joint powers agreement between ten Dakota County cities,the Dakota County CDA and Dakota County. D BB Executive Director Carah Koch will provide an update to the city council on the DBB background since we have a number of new members. I n addition, a review of current activities will be discussed with input from Carah and Mayor Hoyt who serves as the city representative on the DBB Board of Directors. BUDGET IMPACT NA ACTION REQUESTED Listen to the update on the DBB and ask any questions that you may have on the topic. ATTACHMENTS: Type Description © Cover Memo DBB Background D Cover Memo DBB Powerpoint T� B � 0 � 0B � B 0 • WHAT IS IT? The Dakota Broadband Board(DBB)was created in December 2017 through a Joint Powers Agreement(JPA) between Dakota County,the Dakota County Community Development Agency,and the following cities: Apple Valley Burnsville Farmington Hastings Inver Grove Heights Lakeville Mendota Heights Rosemount South St Paul West St Paul The DBB Board consists of one representative and one alternate from the elected governing body of each member. As stated in the JPA,the intent of the DBB is to: • To create a high-performance institutional network(I-Net)for the efficient management of physical network assets owned among members(conduit,fiber cable,etc.),and to enable more efficient and lower cost price agreements for members for a variety of IP-based services • To utilize excess I-Net capacity to enhance business attraction,business retention and economic development opportunities through the provision of wholesale access to private sector service providers (C-Net) • The DBB will not be a retail provider of services to businesses and residents in Dakota County WHAT VALUE DOES IT BRING TO THE COMMUNITY? Efficient Use of Public Resources • Working collaboratively,and combining resources to manage the DBB network,enables communities to leverage economies of scale and lower network costs. • Expanded utilization of the fiber network provides additional opportunities to connect public facilities like parks,water towers,schools,traffic signals,libraries,public safety,and core infrastructure. Redundancy to Protect Against Unforeseen Disruptions • The structure of the network,and the redundant connections,protects communities from unexpected breaks in service which can negatively impact the ability of members to provide critical public services to citizens. • The structure of the network also supports increased capacity for Continuity of Operations(COOP) planning and disaster preparedness. Potential for Economic Development Opportunities Throughout Dakota County • In collaboration with the private sector,the excess capacity in the DBB network could be leased to providers who would then offer internet services to businesses of all sizes in Dakota County. Access to a high-speed fiber network can be a key requirement for many new businesses and residents looking to relocate,and the DBB network could serve as a catalyst for service when this is needed. HOW IS THE NETWORK FUNDED? Dakota County has been operating under a"Dig Once"policy since the 1990's that has resulted in the installation of empty conduit,or conduit and fiber,as a part of its road construction projects. Since the majority of the cost to install fiber is in the construction,this policy has created a significant cost savings for the County,and enabled the creation of a large part of the network over time. Individual fiber projects that take place in member communities are funded as part of their annual budget processes,and planning activities take place on an ongoing basis between DBB members and DBB staff to help identify new projects for the future. Operational costs for the DBB are allocated to member communities based on their proportion of the total assets in the network,overall population,and the number of fiber route miles in the member community. For additional information,please contact Carah Koch,DBB Executive Director at:ckoch@farmingtommn.gov Dakota roa an oar Overview and Update Farmington City Council Work Session June 7, 2021 i Presentation Overview Introduction to Broadband Fiber What is the Dakota Broadband Board (DBB)? Projects and Process l�.. What Value Does It Bring to the City of Farmington? Future Plans and Current Challenges Questions and Conversation Introduction to Broadband Fiber "Fiber optic technology converts electrical signals carrying data to light and sends the light through transparent glass fibers about the diameter of a human hair. Fiber transmits data at speeds far exceeding current DSL or cable modem speeds, typically by tens or even hundreds of Mbps"(Fcc,2019) Transmission speeds available using fiber are critical to technology needs today • Public safety and healthcare services, education, business transactions, entertainment Multiple entities can utilize fiber in a single conduit through the addition of electronics and switches to guide the signals Dakota County " Dig Once" Initiative • Opportunity to reduce the cost of fiber installation through collaboration/planning 3 C F` State of Minnesota and Broadband Minnesota Office of Broadband Development 3.ry ce'nvmOroatlbantl m,;ioea i�ua.un�w�„* II Suvko lnvenlory D.Wo C—tJ It w �r.e..e.ro Mrwaaa pi..iw ° Connects public, private and non- rofit entities with resources to improve broadband access in r ,, , `;{' � ?af �` _ rz?f,> Minnesota a Creates an annual inventor of Y .4 broadband access • Defines access and speed goals for the State of Minnesota • A source for broadband infrastructure ' grants on an annual basis Grant projects often reflect partnerships between public and —� private entities What is the DBB . r • Joint Powers Organization between to cities in Dakota County, Dakota County, and the } ' Dakota County Community Development Agency Member Cities: Apple Valley, Burnsville, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St Paul, and West St Paul k • DBB Systems Plan and JPA (2017) .aR DBB Purpose To create a high performance institutional network (I-Net) for the efficient management of physical network assets owned among members (conduit, fiber cable, etc.), and to enable more efficient and lower cost price agreements for members for a variety of IP-based services • To utilize excess I-Net capacity to enhance business attraction, business retention and economic development opportunities through the provision of wholesale access to private sector service providers (C-Net) • The DBB will not be a retail provider of services to business and residents in Dakota County S Organizational Structure ' Dakota Broadband Board ° One elected representative from each of the member communities • Board meetings are held on the 2nd Wednesday of each month • Executive Committee • Chair and Vice Chair of the DBB Board, Chair and Vice Chair of the TAC, Executive Director ® Executive Committee meetings are held on the 1st Wednesday of each month • Technical Advisory Committee (TAC) • One technical/administration staff member from each of the member communities • TAC meetings are held on the 1st Wednesday of each month • Executive Director • Contracted Services 6 `a ► Annual��', F nding and 202iTotal Budget: • • t 1 <( • Cost per member determine , following I • • Total asset value in the network Number of route miles of fiber Community population i� 'p '�t^ r• • • • annual 2021. Annual Cost for Farmington: $3o,882 (2.90/0 • totalcost) Dakota Broadband Network ( 2023.) ' " Ramsey Hennepin . x a<c, lily ^ I Iln, Washington vfwi Aute BNeTn9too A.��..w l..n; Dakota t W ttv.l .0 e�iln .<�� •,• � d u(nn Goodim no l c.l u t^�� nra►. Cc.a�<I Clk>u.Eo:Gvir.EV.N! Through the utilization of member fiber, the DBB network connects communities across 8 Dakota County. i Member Investment LL LL ;em�N,w 4 E In Broadband C ILa1n V—kFiber Miles*,F YVAtNef Y r r P:tA Ityi,nal or>, Knoll Apple Valley 1.6 Pa ^»ulAatn ` 1111s C»II hotb sl,t Burnsville 33.97y' Empt Dakota County 162.12 slimsl,:�u Farmington 7.03 lb,n.lbn 2M11 Sl LY ,•pte ( r,n11111na JO]Ih til t:' Pa,l y t t.t Hastings .01 F:trintngtott nth= Inver Grove Heights 2.87 Q Lakeville 3.09Ft '— N' _ _. . mmington Mendota Heights 1.71 Rosemount 2.95 GeK Cteb 2251h Sl til $ .Ah St V. South St Paul 4.07 4 3 West St Paul 4.41 E se "°"s'�• Etlieka o rn yCastls Rock RIv *Note:Through external partnerships the network overall also includes over 3.5o additional route miles of fiber. 9 r Project Examples and Process Funding for fiber segments/projects is identified by individual city/county members on an annual basis DBB members identify funding for the fiber projects in their communities which means the DBB as an organization has no debt Projects meetings for 2022 will occur starting in October • Finding opportunities for collaborative partnerships when construction takes place Reduces overall project costs and may create opportunities for members to move forward with projects earlier than anticipated 10 i DBB Project Request Form Lt? G 15 DBB Project Submission 5750 Duluth Street,Golden Valley,MN 55422-4063 Main:763.543.2600 I Service:763.543.2662 Submitted b members to y Primary Contact LO G I S IneldentN4 Enter Incldent#C°l Named Information retained h„n,b.rt Emallr Phones throughout the project process -� ---� and as part of long-term Are There Other MemberstExtemal Parties Involved In The Project Yes documentation NO • Clearly defines ownership and Project Scope billing requirements Project Name* —e --- ® Integrates an approval workflow planned process for streamlined review Unplanned Project category ,-)Locales r.i New, Ci Repair C)Relocate Q overbund Spike Only Other i City of Farmington : Future Project Examples Project #1: Build fiber infrastructure between City Hall and the new liquor store Project #z: Build fiber infrastructure from the Police Station north along Hwy 3 (Potential connection to the water tower) I_. Farmington residents could benefit from these projects through: • Increased efficiency in service delivery ed potential for economic FnRnnwcTory Exand p p POLICE development partnerships and - opportunities (commercial and residential) • Enhanced preparedness for unexpected emergencies and service interruptions .. 12 Value to the City of Farmington Improved redundancy to weather unforeseen breaks and disruptions • Expanded connections to public facilities for community services Parks, water towers, schools, traffic signals, public safety, and core infrastructure • Efficient use of public resources through collaborative efforts and streamlined service provision Savings in staff time; expanded expertise • Increased potential for economic development opportunities throughout the City of Farmington • Enhanced capacity for Continuity of Operations (COOP) planning and disaster preparedness 13 CNET Revenue Sharing Formula Example City of Farmington Project Other DBB Member PrValue oject of Contract $1001000 So% Location $50,000 So% -Location $0 45% Member Share of 11118.70 45% Member Share of Asset $11118.70 Asset Value in Network Value in Network 3.3% Member Share of $224.54 3.3% Member Share of Total $224.54 Total Population Population Total for City of $51,343.24 Total for City of $1,343.24 Farmington Farmington 14 Future Plans and Current Challenges • Identification and completion of additional I-Net projects Ongoing work on new builds, relocations, and collaborative endeavors Member utilization of federal and state funds (ARP, State Broadband grants, etc.) Approval of Remaining Indefeasible Right to Use (IRU) agreements between DBB members who have not yet signed and the DBB Update of DBB Systems Plan r. RFI/RFP process and DBB Board discussion • Economic Development Opportunities and DBB Direction Variety of policy perspectives regarding CNET is Questions and Conversation Carah Koch Executive Director, Dakota Broadband Board ckoch@a Farmingtommn.gov 16 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 YIIIII�■I © Farmington MN,gov ice.... TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: 2022 Budget and Financial Plan Discussion (30 Minutes) DATE: June 7, 2021 INTRODUCTION The 2022 budget development process is underway at the staff level.This is an opportunity for the city council to provide staff with direction and discuss the Financial Plan. DISCUSSION City staff has started the development of the 2022/2023 budget. Before the presentation of the information at the next work session,staff would like the city council to discuss the budget and provide any high level guidance on the budget and tax levy for 2022. The budget includes the city's Financial Plan which was developed to assist in guiding the budget process and planning for the future. The summary on page 3 provides an overview of the Financial Plan. Encompassed in the plan are the capital improvement plans for street projects,street maintenance, vehicles, capital equipment, human resources, General Fund projects, park improvement,fire equipment, police equipment, trail maintenance, and building maintenance along with the plan for current and future debt.The transfers listed on pages 19 and 20 provides guidance on the current allocation for those funds. While it can be difficult to provide guidance without having a draft budget in front of you, it is also a good time to provide staff with direction so that the draft budget will reflect the priorities of the city council. BUDGET IMPACT NA ACTION REQUESTED Provide city staff with direction or priorities on the 2022 budget and tax levy and ask any questions you may have of the Financial Plan. ATTACHMENTS: Type Description 0 Backup Material Financial Plan CITY OF FARMINGTON Five/Ten Year Financial Plan May 2021 The City of Farmington has been working to improve its financial health over the past decade. This work has produced positive results including meeting the city council General Fund balance goal, obtaining two bond-rating upgrades,the downward trend of the city tax rate since 2013 and the implementation of long and short-range capital improvement plans in a number of areas. This Five/Ten Year Financial Plan is meant to be a framework for the city council to track all of the important financial information in a summary form that city staff is aware of at this point. This is a framework, information will change and nothing in the document should be construed as set in stone until the city council votes on the budget and tax levy each year. The financial goals that this plan is based upon are listed below. These goals change periodically as well. ✓ Maintain our AA+bond rating ✓ Work towards a AAA bond rating ✓ Transition from funding large projects from debt to a combination of debt and cash to eventually all cash ✓ Transition to shorter bond repayment lengths ✓ Balance future tax levy increases to acceptable levels ✓ Work to achieve annual street/trail maintenance/projects funding targets ✓ Purchase all future fire apparatus with cash ✓ Review city council fund balance reserve goal This document is meant to tell a story so the city council,staff and residents can see the big picture of the next five and ten years of city finances. This plan focuses primarily on the General Fund but also includes financial plans and capital improvement plans for our utility funds as well. This document includes a summary of the next five years (2022-2026)which is followed by individual financial plans in a number of areas. City staff does have a ten year plan as well (2027-2031) but thought it is important to focus on the first five years of the plan. A number of important factors are highlighted and explained to show potential future projects and funding changes. The plans and changes are only proposals at this time and should not be considered official until they are approved by the city council. —1— CITY OF FARMINGTON 1� Summary Page and Summary Page with Items of Note CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN SUMMARY 2021 2022 2023 2024 2025 2026 ANNUAL HUMAN RESOURCES COSTS $10,159,442 $10,565,820 $10,988,453 $11,427,991 $11,885,110 $12,360,515 BASE NON-HR COSTS $2,850,671 $2,936,191 $2,965,553 $3,024,864 $3,115,610 $3,209,078 NEW HR COSTS $0 $100,000 $175,000 $175,000 $100,000 $100,000 EXISTING DEBT $3,012,093 $2,275,250 $1,883,250 $1,566,250 $1,440,750 $1,123,250 FUTURE STREET CIP DEBT $0 $297,000 $582,000 $763,000 $888,000 $888,000 FUTURE STREET CIP CASH $0 $0 $0 $0 $0 $0 FUTURE VEHICLE CIP CASH $143,989 $475,000 $550,000 $630,000 $624,000 $680,000 TRANSFER PROJECT-TAX LEVY $572,775 $1,227,022 $1,267,022 $1,262,747 $1,419,725 $1,651,725 TRANSFER PROJECT-LGA _ $105,587 $105,587 $105,587 $105,587 $105,587 $105,587 PROJECTS-TAX LEVY $0 $0 $0 $0 $0 $0 PROJECTS-DEBT PAYMENTS $0 $0 $252,000 $252,000 $504,000 $504,000 PARK IMPROVEMENT FUND CIP $0 $0 $0 $100,000 $100,000 $100,000 TOTAL OPERATING/DEBT EXPENDITURES $16,844,557 $17,981,870 $18,768,865 $19,307,439 $20,182,782 $20,722,155 OTHER REVENUES(1%INCREASE ANNUALLY) $3,298,344 $3,331,327 $3,364,641 $3,398,287 $3,432,270 $3,466,593 FISCAL DISPARITIES $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 TOTAL REVENUES $5,576,003 $5,608,986 $5,642,300 $5,675,946 $5,709,929 $5,744,252 SUMMARY _ BASE BUDGET LEVY $13,010,113 $13,602,011 $14,129,006 $14,627,855 $15,100,720 $15,669,593 CIP/TRANSFER/LGA LEVY $678,362 $1,332,609 $1,372,609 $1,468,334 $1,625,312 $1,857,312 EXISTING DEBT LEVY $3,012,093 $2,275,250 $1,883,250 $1,566,250 $1,440,750 $1,123,250 FUTURE DEBT LEVY $0 $297,000 $834,000 $1,015,000 $1,392,000 $1,392,000 PAY AS WE GO LEVY $143,989 $475,000 $550,000 $630,000 $624,000 $680,000 TOTAL EXPENDITURES $16,844,557 $17,981,870 $18,768,865 $19,307,439 $20,182,782 $20,722,155 OTHER REVENUES $3,298,344 $3,331,327 $3,364,641 $3,398,287 $3,432,270 $3,466,593 FISCAL DISPARITIES $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 TOTAL REVENUES $5,576,003 $5,608,986 $5,642,300 $5,675,946 $5,709,929 $5,744,252 TOTAL TAX LEVY $11,268,554 $12,372,883 $13,126,565 $13,631,493 $14,472,853 $14,977,903 PROJECTED%CHANGE 4.90% 9.80% 6.09% 3.85% 6.17% 3.49% PROJECTED$CHANGE $526,000 $1,104,329 $753,681 $504,928 $841,361 $505,050 ENDING FUND BALANCE $6,092,605 $6,092,605 $6,092,605 $6,092,605 $6,092,605 $6,092,605 FUND BALANCE AS A%OF ANNUAL EXPENSES 44.51% 40.52%. 38.86% 37.68% 36.43% 34.76% 5/11/2021 -3- 2030 Financial Plan Info.xlsx2030 Financial Plan Info.xlsx CITY OF FARMINGTON 5/10YEAR FINANCIAL PLAN SUMMARY 2021 2022 2023 2024 2025 2026 ANNUAL HUMAN RESOURCES COSTS $10,159,442 $10,565,820 $10,988,453 $11,427,991 $11,885,110 $12,360,515 BASE NON-HR COSTS $2,850,671 $2,936,191 $2,965,553 $3,024,864 $3,115,610 $3,209,078 NEW HR COSTS $0 $100,000 $175,000 $175,000 $100,000 $100,000 EXISTING DEBT $3,012,093 $2,275,250 $1,883,250 $1,566,250 $1,440,750 $1,123,250 FUTURE STREET CIP DEBT $0 $297,000 $582,000 $763,000 $888,000 $888,000 FUTURE STREET CIP CASH $0 $0 $0 $0 $0 $0 FUTURE VEHICLE CIP CASH $143,989 $475,0001 $550,000 $630,000 $624,000 $680,000 TRANSFER PROJECT-TAX LEVY $572,775 $1,227,022 $1,267,022 $1,262,747 $1,419,725 $1,651,725 TRANSFER PROJECT-LGA $105,587 $105,587 $105,587 $105,587 $105,587 $105,587 PROJECTS-TAX LEVY $0 $0 $0 1 $0 $0 $0 PROJECTS-DEBT PAYMENTS $0 $0 $252,000 $252,000 $504,000 $504,000 PARK IMPROVEMENT FUND CIP $0 $0 $0 $100,000 $100,000 $100,000 TOTAL OPERATING/DEBT EXPENDITURES $16,844,557 $17,981,870 $18,768,865 $19,307,439 $20,182,782 $20,722,155 OTHER REVENUES(1%INCREASE ANNUALLY) $3,298,344 $3,331,327 $3,364,641 $3,398,287 $3,432,270 $3,466,593 FISCAL DISPARITIES $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 TOTAL REVENUES $5,576,003 $5,608,986 $5,642,300 $5,675,946 $5,709,929 $5,744,252 SUMMARY BASE BUDGET LEVY $13,010,113 $13,602,011 $14,129,006 $14,627,855 $15,100,720 $15,669,593 CIP/TRANSFER/LGA LEVY $678,362 $1,332,609 $1,372,609 $1,468,334 $1,625,312 $1,857,312 EXISTING DEBT LEVY $3,012,093 $2,275,250 $1,883,250 $1,566,250 $1,440,750 $1,123,250 FUTURE DEBT LEVY $0 $297,000 $834,000 $1,015,000 $1,392,000 $1,392,000 PAY AS WE GO LEVY $143,989 $475,000 $550,000 $630,000 $624,000 $680,000 TOTAL EXPENDITURES $16,844,557 $17,981,870 $18,768,865 $19,307,439 $20,182,782 $20,722,155 OTHER REVENUES $3,298,344 $3,331,327 $3,364,641 $3,398,287 $3,432,270 $3,466,593 FISCAL DISPARITIES $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 $2,277,659 TOTAL REVENUES $5,576,003 $5,608,986 $5,642,300 $5,675,946 $5,709,929 $5,744,252 TOTALTAX LEVY $11,268,554 $12,372,883 $13,126,565 $13,631,493 $14,472,853 $14,977,903 PROJECTED%CHANGE 4.90% 9.80% 6.09% 3.85% 6.17% 3.49% PROJECTED$CHANGE $526,000 $1,104,329 $753,681 $504,928 $841,361 $505,050 ENDING FUND BALANCE $6,092,605 $6,092,605 $6,092,605 $6,092,605 $6,092,605 $6,092,605 FUND BALANCE AS A%OF ANNUAL EXPENSES 44.519 40.S2% 30.86% 37.68% 36.43% 34.769 5/11/2021 -4- 2030 Financial Plan Info.x1sx2030 Financial Plan info.xlsx Items of Note 1. One of the last major hurdles in our financial planning is a consistent and dedicated funding source for General Fund vehicles. The 2022 budget is the first year we make a concentrated effort to get this line item into the financial plan. The 2022 dollar amount at this point is$475,000. 2. The Transfers Project Tax Levy sees a significant increase in 2022. The main reasons for this increase include a significant increase in pavement management dollars to try to reach the appropriate funding level each year. In addition, 2022 is the first year we start to collect dollars to replace Engine 1 in 2026 paid for with all cash. The other impacts on this area include the transfer of a number of items previously funded through Local Government Aid dollars. In 2021,our LGA funding was reduced by approximately 60%. 3. This item reflects potential debt the city would incur and start to pay back for a potential locker rooms project at Schmitz-Maki Arena. This item is placed in here knowing it may change with a potential parks and recreation related bond referendum in 2022. 4. This item is added as a placeholder to create city council discussion on a dedicated tax levy line item to increase the funding for park improvement projects. The Parks Improvement CIP includes a negative fund balance starting in 2026. 5. This item is added as a placeholder to create city council discussion on a potential city facility related project. I have listed the project as an expansion of the police department at this time as it will likely be a need shortly. Other Plan Assumptions The plan includes a number of other assumptions at this point. A reminder,that these are assumptions and would not be confirmed until a city council vote on future budgets. ✓ The plan includes one new position per year starting in 2022 to cover future staffing needs. The amount of$100,000 is used annual at this point to cover wages, benefits, etc. ✓ A 1%increase in "other revenues" is used to account for increased income from permits,etc. ✓ The amount used for Fiscal Disparities is kept constant at the most recent approved number. In this plan,the amount from the 2021 budget is used for all ten years of the plan. —5— ✓ Increased human resources costs in terms of wages, cost of living adjustment and benefit cost increases are assumed in the plan. 2022 Items Summary There are a number of large items affecting 2022. For simplicity,these items are summarized below. 1. First Year Collection for Engine 1 Replacement in 2026-$220,000 2. Increase in Annual Pavement Management Funding-$319,000 3. Increase for Vehicle CIP Cash-$331,000 4. Addition of Bond Payments for 2022 Street Projects-$297,000 -6- CITY OF FARMINGTON NOW- Debt P�Exi tin s This CIP tracks the repayment of existing debt in the General Fund. Any new debt issued is moved to this plan once it is issued. —7— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN _ EXISTING GENERAL FUND DEBT ROAD AND BRIDGE FUND 2021 2022 2023 2024 2025 2026 2013A(ASH/SPRUCE/HILL DEE) $443,000 2016A(ELM/195TH/WALNUT) $574,327 $624,750 $276,750 $271,750 $181,750 $181,750 TOTAL ROAD AND BRIDGE FUND DEBT $1,017,327 $624,750 $276,750 $271,750 $181,750 $181,750 NON ROAD AND BRIDGE FUND 2021 2022 2023 2024 2025 2026 2010A(POLICE STATION) $292,253 2005C(FIRE STATION 2) $275,000 $166,000 $166,000 $96,000 $49,000 20168(CITY HALL) $635,000 $640,000 $638,000 $636,000 $647,500 $648,000 2015A(195TH ST) $293,500 $335,500 $293,500 $293,500 $293,500 $293,500 2019A(WESTVIEW ACRES) $231,000 $240,000 $240,000 2020A(LADDER ONE) $268,013 $269,000 $269,000 $269,000 $269,000 TOTAL NON ROAD AND BRIDGE DEBT $1,994,766 $1,650,500 $1,606,500 $1,294,500 $1,259,000 $941,500 TOTAL EXISTING DEBT $3,012,093 $2,275,250 $1,883,250 $1,566,250 $1,440,750 $1,123,250 5/11/2021 -8- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN EXISTING/FUTURE GENERAL FUND DEBT ROAD AND BRIDGE FUND 2021 2022 2023 2024 2025 2026 2013A(ASH/SPRUCE/HILL DEE) $443,000 2016A(ELM/195TH/WALNUT) $574,327 $624,750 $276,750 $271,750 $181,750 $181,750 TOTAL ROAD AND BRIDGE FUND DEBT $1,017,327 $624,750 $276,750 $271,750 $181,750 $181,750 NON ROAD AND BRIDGE FUND 2021 2022 2023 2024 2025 2026 2010A(POLICE STATION) $292,253 2005C(FIRE STATION 2) $275,000 $166,000 $166,000 $96,000 $49,000 2016B(CITY HALL) $635,000 $640,000 $638,000 $636,000 $647,500 $648,000 2015A(195TH ST) $293,500 $335,500 $293,500 $293,500 $293,500 $293,500 2019A(WESTVIEW ACRES) $231,000 $240,000 $240,000 2020A(LADDER ONE) $269,000 $269,000 $269,000 $269,000 $269,000 2022 STREET PROJECTS $0 $297,000 $297,000 $297,000 $297,000 $297,000 2023 STREET PROJECTS $0 $0 $285,000 $285,000 $285,000 $285,000 PROJECTS-ARENA LOCKER ROOMS $0 $0 $252,000 $252,000 $252,000 $252,000 2024 STREET PROJECTS $0 $0 $0 $181,000 $181,000 $181,000 2025 STREET PROJECTS $0 $0 $0 $0 $125,000 $125,000 PROJECTS-POLICE DEPARTMENT EXP $0 $0 $0 $0 $252,000 $252,000 TOTAL NON ROAD AND BRIDGE DEBT $1,995,753 $1,947,500 $2,440,500 $2,309,500 $2,651,000 $2,333,500 TOTAL EXISTING DEBT $3,013,080 $2,572,250 $2,717,250 $2,581,250 $2,832,750 $2,515,250 ITALIZED ITEMS ARE ASSUMPTIONS AND HAVE NOT BEEN APPROVED BY THE CITY COUNCIL 5/11/2021 -9- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON Street Projects CIP This CIP tracks upcoming street construction and reconstruction projects over the next five years. —10— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN STREET PROJECTS CIP STREETS CAPITAL IMPROVEMENT PLAN PROJECT 2021 2022_ 2023 - 2024 2025 2026 HWY 3 TRAIL THROUGH LPP $275,000 CR 66/HWY 3 ROUNDABOUT $103,809 HWY 3 TRAIL THROUGH LPP EAST SIDE $216,797 TURN LANES AT 225TH STREET $158,664 9TH STREET BACKAGE ROAD $2,206,222 SPRUCE STREET(RR TRACKS TO DENMARK) $2,189,867 DIVISION STREET $1,013,134 WILLOW/LINDON STREETS $2,627,587 PINE STREET $1,967,833 BACKAGE ROAD,CARVER LANE $896,844 FIRST/OAK STREETS $3,995,670 SIXTH STREET $2,027,630 TOTAL STREET CIP EXPENDITURES $0 $6,584,858 $4,174,055 $4,892,514 $2,027,630 $0 STREET CIP FUNDING/FUND BALANCE 2021 2022 2023 2024 2025 2026 STARTING BALANCE $0 $150,000 $150,000 $150,001 $150,002 $150,003 TOTALANNUAL EXPENDITURES $O $6,584,858 $4,174,055 $4,892,514 $2,027,630 $0 TOTALANNUALTAX LEVY(CASH) $0 $0 $0 $0 $0 $0 BONDED DEBT REVENUE $0 $2,351,841 $2,264,715 $1,429,912 $986,415 $0 WATER FUND CONTRIBUTION $0 $1,146,105 $635,157 $1,053,685 $401,873 $0 STORM WATER FUND CONTRIBUTION $0 $741,143 $491,646 $533,313 $292,271 $0 SANITARY SEWER FUND CONTRIBUTION $0 $720,769 $782,538 $760,605 $347,072 $0 TRANSFERS FROM R/B FUND $0 $0 $0 $0 $0 $1,000,000 MSA CONTRIBUTIONS $0 $1,350,000 $0 $1,115,000 $0 $0 OTHER SOURCES $0 $275,000 $0 $0 $0 $0 YEAR ENDING BALANCE $150,000 $150,000 $150,001 $150002 $150,003 $1,150,003 FUTURE CIP DEBT REPAYMENTS 2021 2022 2023 2024 2025 2026 2022 PROJECT(10 YEARS) $297,000 $297,000 $297,000 $297,000 $297,000 2023 PROJECTS(10 YEARS) $285,000 $285,000 $285,000 $285,000 2024 PROJECTS(10 YEARS) $181,000 $181,000L$181,000 2025 PROJECTS(10 YEARS) $125,000 $125,000 TOTAL FUTURE STREET CIP DEBT $0 $297,000 $582,000 $763,000 $888,000 $888,000 ASSUMPTIONS DEBT PAID BACK AT 120%OF BOND DEBT TYPICALLY PAID BACK OVER 10 YEARS ANNUAL PAYMENT AT 105% NO STREET PROJECTS IN 2026 WITH WATER METER REPLACEMENT COSTS OCCURING THAT YEAR. 5/11/2021 -11- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON Maointenance treet CIP This CIP tracks the planned street maintenance work including sealcoating, crack sealing and mill and overlay projects. _12_ STREET MAINTENANCE FUND 5/10 YEAR FINANCIAL PLAN STREET MAINTENANCE CIP 2021 2022 2023 2024 2025 2026' STARTING CASH BALANCE $164,628 $163,396 $140,436 $174,236 $217,271 $280,612 REVENUES $1,009,408 $742,000 $753,200 $767,000 $792,000 $812,000 TAX LEVY $331,208 $650,000 $675,000 $675,000 $700,000 $720,000 OTHER REVENUE $200,000 $0 $0 $0 $0 $0 RETRO TRANSFERS $400,000 $0 $0 $0 $0 $0 MSA $78,200 $92,000 $78,200 $92,000 $92,000 $92,000 TOTAL REVENUES $1,009,408 $742,000 $753,200 $767,000 1 $792,000 $812,000 EXPENSES CRACK SEALING $35,640 $36,960 $38,280 $39,600 $40,920 $40,920 SEAL COATING/OTHER $75,000 $78,000 $81,120 $84,365 $87,739 $87,739 MILL AND OVERLAY $450,000 $650,000 $600,000 $600,000 $600,000 $600,000 PARKING LOT PROJECTS $450,000 $0 $0 $0 $0 $0 TOTAL EXPENSES $1,010,640 $764,960 $719,400 $723,965 $728,659 1 $728,659 ENDING BALANCE $163,396 $140,436 $174,236 $217,271 $280,612 $363,953 IDEAL MAINTENANCE FUNDING PAVEMENT MANAGEMENT $871,000 5/11/2021 -13- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON Vehelcles This CIP tracks the purchase/replacement plan for vehicles from General Fund departments. —14— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN GENERAL FUND VEHICLE CIP SUMMARY 2021 2022 2023 2024 2025 N_ 2026 COMMUNITY DEVELOPMENT $0 $0 $34,500 $0 $0 $0 ENGINEERING $0 $34,880 $37,950 $0 $0 $0 FIRE $0 $121,550 $126,500 $436,600 $432,350 $117,800 MUNICIPAL SERVICES $225,000 $49,410 $252,450 $153,400 $254,100 $0 NATURAL RESOURCES $0 $39,200 $0 $0 $0 $0 PARKS $0 $340,380 $56,350 $123,900 $0 $167,400 POLICE $143,989 $213,920 $118,785 $105,138 $173,030 $212,040 TOTAL $368,989 $799,340 $626,535 $819,038 $859,480 $497,240 VEHICLE CIP FUNDING/FUND BALANCE 2021 2022 2023 2024 2025 2026 STARTING BALANCE $127,148 $127,148 -$197,192 -$273,727 -$462,765 -$698,245 TOTAL ANNUAL EXPENDITURES $368,989 $799,340 $626,535 $819,038 $859,480 $497,240 TAX LEVY REVENUE $143,989 $475,000 $550,000 $630,000 $624,000 $680,000 USE OF FUND BALANCE $225,000 $0 $0 $0 $0 $0 LGA $0 $0 $0 $0 $0 $0 OTHER REVENUE $0 $0 $0 $0 $0 $0 YEAR ENDING BALANCE $127,148 -$197,192 -$273,727 -$462,765 -$698,245 -$515,485 FUTURE CIP DEBT REPAYMENTS 2021 2022 2023 2024 2025 2026 FUTURE DEBT $0 $0 $0 $0 $0 $0 TOTAL FUTURE CIP DEBT $0 $0 $0 $0 $0 $0 2022 PURCHASES TBD TOTAL 5/11/2021 -15- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN VEHICLE CIP SUMMARY CAPITAL EQUIPMENT-OTHER FUNDS 2021 w 2022 2023 2024 2025 2026 WATER $228,900 $64,400 $0 $0 $78,650 _ $0 SANITARY SEWER $430,550 $0 $241,500 $230,100 $96,800 $0 STORMWATER $0 $0 $227,700 $247,800 $48,400 $0 SOLID WASTE $0 $0 $478,240 $0 $387,040 $0 FLEET $0 $0 $0 $0 $0 $0 TOTAL $659,450 $64,400 $947,440 $477,900 $610,890 $0 VEHICLE CIP FUNDING/FUND BALANCE 2021 2022 2023 2024 2025 2026 STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $659,450 $64,400 $947,440 $477,900 $610,890 $0 WATER REVENUES $228,900 $64,400 $0 $0 $78,650 $0 SANITARY SEWER REVENUES $430,550 $0 $241,500 $230,100 $96,800 $0 STORMWATER REVENUES $0 $0 $227,700 1 $247,800 1 $48,400 1 $0 SOLID WASTE REVENUES $0 $0 $478,240 $0 $387,040 $0 YEAR ENDING BALANCE $0 $0 $0 $0 $0 $0 FUTURE CIP DEBT REPAYMENTS 2021 2022 2023 2024 2025 2026 NONE $0 $0 $0 $0 $0 $0 TOTAL FUTURE CIP DEBT $0 $0 $0 $0 $0 $0 5/11/2021 -16- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON RHuman CIP This CIP tracks potential added staff positions needed due to work volumes and increased population. —17— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN NEW POSITIONS CIP POTENTIAL NEW POSITIONS 2021 2022 _ 2023 2024 2025 2026 ADMINISTRATION ASSISTANT CITY ADMINISTRATOR $100,000 PUBLIC WORKS MAINTENANCE WORKER $100,000 FIRE ADMINISTRATIVE SUPPORT $75,000 DUTY CREWS HR/IT IT POSITION $100,000 COMMUNICATIONS SPECIALIST $75,000 PARKS/RECREATION PARK MAINTENANCE $100,000 POLICE PATROL OFFICER $100,000 CSO TOTAL 1 $0 000,000 $175,000 $175,000 $100,M $100,000 5/11/2021 2030 Financial Plan Info.xlsx CITY OF FARMINGTON �plr�liiiu�■ri�Nr„� Transfers CIP This CIP tracks specific expenditures that staff or the city council have asked be noted over time. There are two funding sources in this plan, the tax levy and the use of local government aid dollars. _fig_ CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN TRANSFERS CIP TAX LEVY PROJECTS 2021 12022 2023 2024 2025 2026' EDA TRANSFER $0 $50,000 $50,000 $50,000 $50,000 $50,000 ENGINE ONE REPLACEMENT(2026) $0 $220,000 $220,000 $220,000 $220,000 $222,000 FIRE ENGINE REPLACEMENT $0 $0 $0 $0 $0 $0 ARENA CAPITAL PROJECTS $0 $20,000 $20,000 $20,000 $20,000 $20,000 POLICE EQUIPMENT CIP $75,000 $110,000 $55,000 $30,725 $30,725 $30,725 FIRE EQUIPMENT CIP $91,545 $25,000 $70,000 $60,000 $80,000 $160,000 PAVEMENT MANAGEMENT $331,208 $650,000 $675,000 $675,000 $700,000 $720,000 TRAIL MAINTENANCE CIP $20,000 $85,000 $100,000 $120,000 $170,000 $200,000 BUILDING MAINTENANCE CIP $42,000 $5,000 $15,000 $25,000 $100,000 $200,000 TOWNSHIP ROAD MAINTENANCE $0 $9,000 $9,000 $9,000 $9,000 $9,000 EMPLOYEE EXPENSE FUND $13,022 $13,022 $13,022 $13,022 $0 $0 PROPERTY/CASUALTY DEDUCTIBLE $0 $20,000 $20,000 $20,000 $20,000 $20,000 COMPENSATED ABSENCES FUND $0 $20,000 $20,000 $20,000 $20,000 $20,000 TOTAL TAX LEVY PROJECTS $572,775 $1,227,022 $1,267,022 $1,262,747 $1,419,725 $1,651,72S LGA PROJECTS 2021 2022 2023 2024 2025 2026 BUILDING MAINTENANCE $15,786 $45,587 $45,587 $45,587 $45,587 $45,587 EDATRANSFER $40,000 $0 $0 $0 $0 $0 EMERALD ASH BORER $10,825 $10,000 $10,000 $10,000 $10,000 $10,000 TRAIL MAINTENANCE $30,000 $50,000 $50,000 $50,000 $50,000 $50,000 TOWNSHIP ROAD MAINTENANCE $3,000 $0 $0 $0 $0 $0 PROPERTY INSURANCE $5,976 $0 $0 $0 $0 $0 TOTAL LGA PROJECTS $105,587 $105,587 $105,587 $105,587 $105,587 $105,587 TOTAL TRANSFERS PROJECTS $678,362 $1,332,609 $1,372,609 $1,368,334 $1,525,312 $1,757,312 FUNDING TARGETS BUILDING MAINTENANCE $300,000 EMERALD ASH BORER $50,000 TRAIL MAINTENANCE $510,000 PARK IMPROVEMENT FUND $100,000 PAVEMENT MANAGEMENT $810,000 5/11/2021 -20- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON Projeects This CIP tracks potential projects the city may undertake in the future. These larger scale projects may include building and or facility projects. —21— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN FUTURE GENERAL FUND PROJECTS CIP 2021 2022 2023r 2024 2025y v = 1_026 ARENA LOCKER ROOMS $0 $0 $2,000,000 $0 $0 $0 SIDEWALKS $300,000 $0 $0 $0 $0 $0 FUEL STATION $0 $0 $150,000 $0 $0 $0 SALT SHED $0 $0 $250,000 $0 $0 $0 PARKING LOTS $400,000 $0 $0 $0 $0 $0 LIQUOR STORE $0 $0 $0 $0 $0 $0 POLICE DEPARTMENT EXPANSION $0 $0 $0 $0 $2,000,000 1 $0 TOTAL $700,000 $0 $2,400,000 $0 $2,000,000 $0 REVENUE STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $700,000 $0 $2,400,000 $0 $2,000,000 $0 LIQUOR STORE FUNDS $0 $0 $0 $0 $0 $0 TAX LEVY $0 $0 $0 $0 $0 $0 DEBT $0 $0 $2,000,000 $0 $2,000,000 $0 OTHER SOURCES $700,000 $0 $400,000 $0 $0 $0 TOTAL REVENUES $700,000 $0 $2,400,000 $0 $2,000,000 $0 YEAR END BALANCE $0 $0 $0 $0 $0 $0 FUTURE CIP DEBT REPAYMENTS 2021 2022 2023 2024 2025 2026 ARENA LOCKER ROOMS(10 YEARS) $252,000 $252,000 $252,000 $252,000 POLICE DEPARTMENT(10 YEARS) $252,000 $252,000 BOND PAYMENTS $0 $0 $252,000 $252,000 $504,000 $504,000 ASSUMPTIONS DEBT PAID BACK AT 120%OF BOND DEBT TYPICALLY PAID BACK OVER 15 YEARS ANNUAL PAYMENT AT 105% 5/11/2021 —22— 2030 Financial Plan Info.xlsx ` CITYOF FARMINGTON Park Improve m ent CIP This CIP tracks planned park build outs and improvements to the city's park system. —23— CITY OF FARMINGTON 2030 FINANCIAL PLAN PARK IMPROVEMENT CIP PROJECT 2021 2022 2023 ^2024 2025, 2026 DAKOTA ESTATES PARK DAISY KNOLL PARK DEPOT WAY ARTS PARK $200,000 EVERGREEN KNOLL PARK FAIR HILLS PARK FARMINGTON PRESERVE PARK FLAGSTAFF MEADOW $7,500 $100,000 HILL DEE PARK HILLVIEW PARK JIM BELL PARK AND PRESERVE $250,000 $250,000 LAKE JULIA PARK MARIGOLD PARK MEADOWVIEW PARK $85,000 MIDDLE CREEK PARK NORTH CREEK PARK PINE KNOLL PARK $7,500 PRAIRIE PINES PARK PRAIRIE VIEW PARK PRAIRIE WATERWAY RAMBLING RIVER PARK $12,000 $150,000 $40,000 $25,000 $50,000 SILVER SPRINGS PARK $100,000 TAMARACK PARK $95,000 TROY HILL PARK VERMILLION GROVE PARK VRC TOWN SQUARE WESTVIEW ACRES PARK TOTAL $12,000 $157,500 $232,500 $275,000 $145,000 $550,000 FUNDING/FUND BALANCE 2021 2022 2023 2024 2025 2026 STARTING BALANCE $389,974 $486,377 $437,280 $313,340 $238,340 $278,340 ANNUAL PROJECT COSTS $12,000 $157,500 $232,500 $275,000 $145,000 $550,000 TAX LEVY $0 $0 $0 $100,000 $100,000 $100,000 FARM LEASE $8,403 $8,403 $8,560 1 $0 $0 $0 PARK DEDICATION/PARK DEV FEES $25,000 $25,000 $25,000 $25,000 $10,000 $25,000 LIQUOR STORE FUNDING $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 YEAR END BALANCE $486,377 $437,280 $313,340 $238,340 $278,340 -$71,660 FUNDING TARGETS PARK IMPROVEMENT FUND 5/11/2021 -24- 2030 Financial Plan Info.xlsx FUNDING RESTRICTED FLAGSTAFF MEADOW $31,680 JIM BELL $35,116 MYSTIC $106,197 PINE KNOLL $1,596 PRAIRIE VIEW $12,040 WESTVIEW $10,892 SAPPHIRE $52,007 TOTAL $249,528 5/11/2021 —25— 2030 Financial Plan Info.xlsx CITY OF FARMINGTON Includedint e Pans Transfers CIP This CIP tracks a number of expenditures included in the Transfers CIP including fire equipment, police equipment and building maintenance. —26— CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN FIRE EQUIPMENT CIP 2021 ! 2022 2023' 2024 2025 2026 SCBA $149,800 $0 $0 _ $ T $0 $0 PORTABLE RADIOS $240,000 $0 $0 $0 $0 $0 RADIO BATTERIES $0 $8,000 $0 $8,000 $0 $0 MOBILE RADIOS $0 $9,750 $9,750 $9,750 $9,750 $0 EXTRACTION TOOLS $0 $0 $40,000 $0 $0 $0 THERMAL IMAGING CAMERA $7,500 $5,000 $0 $0 $7,500 $0 RAD 57 CO MONITOR $0 $7,000 $0 $0 $8,000 $0 STATION COMPRESSOR $0 $0 $0 $50,000 $0 $0 HOSE 1 $11,000 1 $7,500 $11,000 $7,500 1 $9,000 1 $500 GAS MONITORS $8,000 $0 $9,000 $0 $0 $2,500 TOTAL $416,300 $37,250 $69,750 $75,250 $34,250 $3,000 2021 2022 2023 2024 2025 2026 STARTING BALANCE -$13,817 -$98,572 -$110,822 -$110,572 -$125,822 -$80,072 EXPENDITURES $416,300 $37,250 $69,750 $75,250 $34,250 $3,000 TAX LEVY $91,545 $25,000 $70,000 $60,000 $80,000 $160,000 RETRO TRANSFERS $240,000 $0 $0 $0 $0 $0 ENDING BALALNCE -$98,572 -$110,822 -$110,572 -$125,822 -$80,072 $76,928 5/11/2021 -27- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN POLICE EQUIPMENT CIP 2021 2022 2023e' 2024 2025 2026' AEDS $9,800 $0 $0 $0 $0 $0 RADIOS $73,901 $73,901 $0 $0 $0 $0 HANDGUNS $0 $0 $0 $0 $0 $0 RIFLES $0 $0 $0 $0 $0 $0 TASERS $0 $0 $0 $0 $22,000 $0 BODY CAMERAS $13,452 $13,452 $13,452 $13,452 $13,452 $13,452 SQUAD CAMERAS $14,706 $14,706 $14,706 $16,188 $16,188 $16,188 GUN CAMERAS $0 $0 $0 $0 $0 $0 THERMAL IMAGING $0 $0 $0 $0 $0 $0 FINGERPRINT MACHINE $18,000 $0 $0 $0 $0 $0 SPEED TRAILER $17,000 $0 $0 $0 $0 $0 TOTAL $146,859 $102,059 $28,158 $29,640 $51,640 $29,640 2021 2022 2023 2024 2025 2026 STARTING BALANCE $73,091 $18,232 $26,173 $53,015 $54,100 $33,185 ANNUAL EXPENDITURES $146,859 $102,059 $28,158 $29,640 $51,640 $29,640 TAX LEVY $75,000 $110,000 $55,000 $30,725 $30,725 $30,725 RETRO TRANSFERS $17,000 $0 $0 $0 $0 $0 ENDING BALANCE $18,232 $26,173 $53,015 $54,100 $33,185 $34,270 5/11/2021 -28- 2030 Financial Plan Info.xisx CITY OF FARMINGTON 2030 FINANCIAL PLAN TRAIL MAINTENANCE CIP REVENUES 2021 2022 ' 2623 _ 2024 2025 2026' TAX LEVY $20,000 $85,000 $100,000 $120,000 $170,000 $200,000 LOCAL GOVERNMENT AID $30,000 $50,000 $50,000 $50,000 $50,000 $50,000 OTHER $0 $0 $0 $0 $0 $0 TOTAL $50,000 $135,000 $150,000 $170,000 $220,000 $250,000 EXPENDITURES 2021 2022 2023 2024 2025 2026 BEGINNING BALALNCE $87,912 $14,752 $25,712 $792 -$5,008 $38,312 FOG SEALING $15,600 $16,20011 16,200 $16,800 $17,400 $18,000 $18,600 CRACK SEALING $7,560 $7,840 $8,120 $8,400 $8,680 $8,984 PAVEMENT REPLACEMENT $100,000 $100,000 $150,000 $150,000 $150,000 $200,000 RECONSTRUCTION $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $123,160 $124,040 $174,920 $175,800 $176,680 $227,584 YEAR END BALANCE $14,752 $25,712 $792 -$51008 $38,312 $60,728 FUNDING TARGET TRAIL MAINTENANCE TARGET $510,000 5/11/2021 -29- 2030 Financial Plan Info.xlsx CITY OF FARMINGTON 2030 FINANCIAL PLAN BUILDING CIP SCHEDULE SUMMARY BY BUILDING 2021 2022_ 2023 _ 2024 202_5 2026 CITY HALL $7,500 $0 $0 $0 $0 $0 FIRE STATION##1 $0 $0 $0 $0 $0 $0 FIRE STATION##2 $0 $0 $0 $0 $0 $0 SCHMITZ-MAKI ARENA $0 $0 $0 $0 $0 $0 FIRST STREET GARAGE $0 $0 $0 $0 $0 $0 MAINTENANCE FACILITY $7,500 $0 $0 $0 $0 $0 POLICE STATION $0 $0 $0 $0 $0 $45,000 RAMBLING RIVER CENTER $0 $0 $0 $0 $0 $0 FEES(7.5%) $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $15,000 $0 $0 $0 $0 $45,000 2021 2022 2023 2024 2025 2026 STARTING BALANCE $130,426 $188,212 $238,799 $299,386 $369,973 $515,560 EXPENDITURES $15,000 $0 $0 $0 $0 $45,000 LGA FUNDING $15,786 $45,587 $45,587 $45,587 $45,587 $45,587 RETRO TRANSFERS $15,000 $0 $0 $0 $0 $0 TAX LEVY FUNDING $42,000 $5,000 $15,000 $25,000 $100,000 $200,000 ENDING BALANCE $188,212 $238,799 $299,386 $369,973 $515,560 $716,147 FUNDING TARGET BUILDING MAINTENANCE 2022 PROJECTS PROJECTS BUILDING BALANCE FOR LARGER PROJECTS TOTAL 5/11/2021 -30- 2030 Financial Plan Info.xlsx CITYOF FARMINGTON City Tax Rate History and Dakota County Cities Comparison FARMINGTON CITY TAX RATE BY YEAR 80 70 66.82 65.87 63.09 > 61.45 60 59.23 58.76 57.16 55.7 j 54.37 I j 50.97 i 49.2 48.98 50 - 40 30 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -32- Dakota County City Tax Rates 80.00 70.00 60.00 a, 50.00 A F- 40.00 30.00 20.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -APPLE VALLEY 39.86 42.38 44.11 49.21 47.89 45.27 44.72 44.47 42.47 39.58 38.71 38.16 -BURNSVILLE 38.56 42.59 43.21 47.02 46.67 44.79 46.52 46.55 43.55 43.57 43.02 42.69 -EAGAN 30.4 33.67 34.55 38.27 38.25 36.52 37.09 37.38 36.37 35.19 35.54 36.25 -FARMINGTON 49.27 55.73 63.09 66.82 65.87 61.45 59.23 58.76 57.16 54.37 50.97 48.98 -HASTINGS 52.67 55.19 66.08 68.54 66.24 62.58 63.57 62.51 60.86 59.55 57.34 57.25 -INVER GROVE HEIGHTS 41.75 43.16 44.88 46.31 46.12 48.13 49.26 51.64 51.11 54.61 51.28 50.8 -LAKEVILLE 36.62 38.25 39.05 41.23 40.69 38.94 38.66 37.51 36.41 35.93 34.84 34.52 -MENDOTA HEIGHTS 29.69 31.27 33.46 35.98 34.73 34.96 35.24 38.1 39.64 41.1 40.19 39.21 -ROSEMOUNT 43.35 44.66 46.99 48.86 47.67 45.15 43.14 41.83 40.96 39.66 38.72 36.81 -SOUTH ST.PAUL 41.42 48.37 56.46 63.28 60.9 60.4 64.69 63.85 64.04 65.33 60.89 63.21 -WEST ST.PAUL 50.87 56.07 62.2 69.44 71.24 70.64 69.79 71.41 69.28 72.6 72.01 69.67 CITY OF FARMINGTON NEW TAX CAPACITY GROWTH PERCENTAGE 2.50% 1.93% i _. I 1.49% i 1.30% i 1.21% 1.19% I 1.22% 1.12% 1.00% 0.97% - =' 0.87% - 0.85% i Ii i 0.57% 0.56% 0.50% — i i 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Five Year Rolling Average -33- Tax Rate by Entity 00 N A O O O O O O O O WEST ST.PAUL r bo SOUTH ST.PAUL LL Fwi HASTINGS Q1 INVER GROVE HEIGHTS w N FARMINGTON gyp_ BURNSVILLE m N X � ROSEMOUNT p N 91 ' CDD N APPLE VALLEY 0 MENDOTA HEIGHTS EAGAN bo i LAKEVILLE bo 0 0 � n O = D O X 1 X X m � n M m CITY OF FARMINGTON ww-- UtelleityFunds CIP This CIP tracks the four utility funds. These funds stand on their own and are funded by fees paid by users. —35— CITY OF FARMINGTON 2030 FINANCIAL PLAN WATER FUND FUND 6500 SERVICE DETAILS 2021 2022 2023 2024 2025 2026 POPULATION 24,700 25,100 25,500 25,900 26,300 26,700 AVG DAY PER CAPITA(GALLONS) 80 80 80 80 80 80 CONNECTIONS 7,309 7,447 7,585 7,723 7,861 8,000 NEW HOUSEHOLDS 138 138 138 138 138 138 AMOUNT METERED(GALLONS) 721,240,000 732,920,000 744,600,000 756,280,000 767,960,000 780,000,000 WATER RATES 2021 ! 2022 2023 2024 2025 2026 BASE CHARGE 15 15.6 16.22 16.87 17.56 18.26 TIER 1 WATER RATE(UNDER 20,000 GALLONS) 1.66 1.73 1.8 1.87 1.94 2.02 TIER 2 WATER RATE(20,000-40,000 GALLONS) 2.49 2.59 2.69 2.8 2.91 3.03 TIER 3 WATER RATE(OVER 40,000 GALLONS) 3.32 3.45 3.59 3.73 3.88 4.04 BASE RATE PERCENT INCREASE 0.00% 4.00% 4.00% 4.00% 4.00% 4.00% VOLUME RATE PERCENT INCREASE 0.00% 4.00% 4.00% 1 4.00% 1 4.00% 4.00% REVENUES STARTING FUND BALANCE $6,759,543 $7,073,313 $1,410,565 $1,127,893 $517,321 $581,250 ENTERPRISE SALES $2,055,444 $2,156,589 $2,279,832 $2,409,484 $2,545,861 $2,673,154 REVENUE FROM DEBT $0 $2,461,488 $0 $0 $0 $0 TRUNK FUND CONTRIBUTIONS $0 $280,229 $0 $0 $0 $0 OTHER REVENUES(INTEREST,METERS,ETC.) $0 $0 $0 $0 $0 $0 TOTAL REVENUE $2,055,444 $4,898,306 $2,279,832 $2,409,484 $2,545,861 $2,673,154 EXPENSES OPERATING EXPENSES $853,237 $870,301 $887,707 $905,462 $923,571 $942,042 TRANSFERS OPERATING(PERSONNEL) $444,037 $461,798 $480,270 $499,481 $519,460 $540,238 POTENTIAL HR STAFF ALLOCATION SHIFT $10,000 $10,400 $10,816 $11,249 $11,699 $12,167 CAPITAL IMPROVEMENT PLAN $343,350 $9,125,505 $635,157 $1,053,685 $480,523 $2,246,732 DEBT PAYMENTS $91,050 $93,050 $548,554 $550,179 $546,679 $548,054 TOTAL EXPENSES $ 1,741,674 $ 10,561,054 $ 2,562,504 $ 3,020,056 $ 2,481,932 $ 4,289,234 ANNUAL SURPLUS/DEFICIT $313,770 -$5,662,748 -$282,672 -$610,572 $63,929 -$1,616,080 ENDING FUND BALANCE $7,073,313 $1,410,565 $1,127,893 $517,321 $581,250 -$1,034,830 MINIMUM FUND BALANCE GOAL $417,368 $426,075 $890,548 $901,415 $907,437 $921,666 THREE MONTHS OPERATING $324,318 $333,025 $341,994 $351,236 $360,758 $373,612 DEBT PAYMENTS $93,050 $93,050 $548,554 $550,179 $546,679 $548,054 CAPITAL IMPROVEMENT PLAN 2021 2022 2023 2024 2025 2026 ROUTINE MAINTENANCE $87,200 $2,246,732 FLEET $228,900 $64,400 $78,650 SEAL AND ABANDON $27,250 WATERMAIN REPLACEMENT WITH STREET PROJECT $1,146,105 $635,157 $1,053,685 $401,873 WATER TOWER $7,915,000 TOTAL $343,350 $9,125,505 $635,157 $1,053,685 $480,523 $2,246,732 5/11/2021 -36- 2030 Financial Plan Info.xisx CITY OF FARMINGTON 2030 FINANCIAL PLAN SANITARY SEWER FUND FUND 6200 SERVICE DETAILS 2021 2022 2023 2024 2025 2026 POPULATION 24,700 25,100 25,500 25,900 26,300 26,700 AVG DAY PER CAPITA(GALLONS) 0 0 0 0 0 0 RESIDENTIAL CONNECTIONS 7,043 7,181 7,319 7,457 7,595 7,746 COMMERCIAL CONNECTIONS 222 223 225 226 227 230 NEW HOUSEHOLDS 138 138 138 138 138 138 AMOUNT METERED(GALLONS) 315,542,500 320,652,500 325,762,500 330,782,500 335,982,500 341,022,238 SANITARY SEWER CHARGES 2021 2022 2023 2024 2025 2026 RESIDENTIAL BASE CHARGE 38.94 40.5 42.11 43.8 45.55 47.37 RESIDENTIAL VOLUME RATE 3.89 4.05 4.21 4.38 _4.56 4.74 COMMECIAL BASE CHARGE 83.93 87.29 90.78 94.41 98.19 102.11 COMMERICALVOLUME RATE 4.2 4.36 4.54 4.72 4.91 5.11 BASE RATE PERCENTAGE INCREASE 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% VOLUME RATE PERCENT INCREASE 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% REVENUES STARTING FUND BALANCE $3,175,552 $2,714,978 $1,993,004 $1,148,535 $370,229 $23,743 ENTERPRISE SALES $2,399,462 $2,538,821 $2,685,493 $2,839,838 $3,002,236 $3,173,363 REVENUE FROM DEBT $0 $0 $0 $0 $0 $0 TRUNK FUND CONTRIBUTIONS $0 $0 $0 $0 $0 $0 OTHER REVENUES(INTEREST,METERS,ETC.) $25,758 $26,015 $26,275 $26,538 $26,803 $26,803 TOTAL REVENUE $2,425,220 $2,564,836 $2,711,768 $2,866,376 $3,029,039 $3,200,166 EXPENSES OPERATING EXPENSES $197,537 $207,414 $217,785 $228,674 $240,107 $252,112 TRANSFERS OPERATING(PERSONNEL) $330,603 -1 $343,827 $357,580 $371,883 $386,759 $402,229 POTENTIAL HR STAFF ALLOCATION SHIFT $116,000 _$120,640 $125,466 $130,484 $135,704 $141,132 MCES FEES $1,661,104 $1,744,160 $1,831,368 $1,922,936 $2,019,083 $2,120,037 CAPITAL IMPROVEMENT PLAN $580,550 $870,769 $1,024,038 $990,705 $593,872 $250,000 DEBT PAYMENTS $0 $0 $0 $0 $0 $0 TOTAL EXPENSES $ 2,885,794 $ 3,286,810 $ 3,556,237 $ 3,644,682 $ 3,375,525 $3,165,510 ANNUAL SURPLUS/DEFICIT -$460,574 -$721,974 -$844,469 -$778,306 -$346,486 $34,656 ENDING FUND BALANCE $2,714,978 $1,993,004 $1,148,535 $370,229 $23,743 $58,399 MINIMUM FUND BALANCE GOAL _ $_1,710,489 $1,796,013 $1,885,514 $1,980,105 $2,079,110 $2,183,065 THREE MONTHS OPERATING $49,384 $51,853 $54,446 $57,168 $60,027 $63,028 MCES PAYMENTS $1,661,104 $1,744,160 $1,831,368 $1,922,936 $2,019,083 $2,120,037 CAPITAL IMPROVEMENT PLAN 2021 2022 2023 2024 2025 2026 SANITARY SEWER LINING $150,000 $150,000 $150,000 $150,000 SEWER REPLACEMENTS WITH STREET PROJECTS $720,769 $782,538 $760,605 $347,072 $0 FLEET $430,550 $241,500 $230,100 $96,800 $100,000 TOTAL $580,550 $870,769 $1,024,038 $990,705 $593,872 $250,000 2030 Financial Plan Info.xlsx CITY OF FARMINGTON 2030 FINANCIAL PLAN _ STORMWATER FUND FUND 6400 SERVICE DETAILS 2021 2022 2023 2024 2025 2026 POPULATION 24,700 25,100 25,500 25,900 26,300 26,700 NEW HOUSEHOLDS 138 138 138 138 138 138 SINGLE FAMILY 6,296 6,434 6,572 6,710 6,848 6,945 COMMERCIAL/INDUSTRIAL/MULTI FAMILY REU UNITS 7,882 7,960 8,040 8,120 8,202 8,284 TOTAL REU'S CITY WAIDE 14,178 14,395 14,612 14,830 15,050 15,276 _ _ I STORMWATER RATES 2021 2022 2023 2024 2025 2026 QUARTERLY RATES PER REU 21.25 22.1 22.98 23.9 24.86 25.85 REVENUES STARTING FUND BALANCE $1,712,781_ $1,807,857 $1,176,114 $743,775 $279,071 -$13,897 ENTERPRISE SALES $1,205,120 $1,260,250 $1,330,466 $1,404,360 $1,482,115 $1,563,631 REVENUE FROM DEBT $0 $0 $0 $0 $0 $0 TRUNK FUND CONTRIBUTIONS $0 $0 $0 $0 $0 $0 OTHER REVENUES(INTEREST,METERS,ETC.) $11,032 $11,474 $11,933 $12,410 $12,906 $13,035 TOTAL REVENUE $1,216,152 $1,271,724 $1,342,399 $1,416,770 $1,495,021 $1,576,666 EXPENSES OPERATING EXPENSES $340,500 $357,525 $375,401 $394,171 $413,880 $434,574 TRANSFERS OPERATING(PERSONNEL) $402,576 $418,679 $435,426 $452,843 $470,957 $489,795 CAPITAL IMPROVEMENT PIAN $175,000 $916,143 $744,346 $806,113 $665,671 $290,000 POTENTIAL HR STAFF ALLOCATION SHIFT $203,000 $211,120 $219,565 $228,347 $237,481 $246,980 TOTAL EXPENSES $ 1,121,076 $ 1,903,467 $ 1,774,738 $ 1,881,474 $ 1,787,989 $ 1,461,349 ANNUAL SURPLUS/DEFICIT $95,076 -$631,743 -$432,339 -$464,704 -$292,968 $115,317 ENDING FUND BALANCE r$135,875 857 $1,176,114 $743,775 $279,071 -$13,897 $101,420 _ ---- MINIMUM FUND BALANCE GOAL $142,161 $148,741 $155,630 $162,840 $108,643 THREE MONTHS OPERATING 75 $142,161 $148,741 $155,630 $162,840 $108,643 DEBT PAYMENTS $0 $0 $0 $0 $0 I 2020 CIP 2021 2022 2023 2024 2025 2026 POND CAPACITY IMPROVEMENTS $150,000 $150,000 $300,000 $215,000 VEGETATION MANAGEMENT $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 STORM SYSTEM IMPROVEMENTS WITH STREET PROJECTS $741,143 $491,646 $533,313 $292,271 $0 FLEET REPLACEMENT $227,700 $247,800 $48,400 $50,000 TOTAL $175,000 $916,143 $744,346 $806,113 $665,671 $290,000 5/12/2021 2030 Financial Plan Info.xlsx - 3�� CITY OF FARMINGTON 2030 FINANCIAL PLAN SOLID WASTE ENTERPRISE FUND FUND 6300 SERVICE DETAILS 2021 ( 2022 2023 2024 2025 2026 POPULATION 24,700 25,100 25,500 25,900 26,300 26,700 NEW HOUSEHOLDS 138 138 138 138 138 138 SOLID WASTE GENERATED_TONS 8,167 8,310 8,456 8,604 8,754 8,903 ROLLOFF PICKUPS 460 468 476 484 493 497 ROLLOFF TONS DISPOSED 312 317 323 329 334 339 DISPOSAL COSTS$PER TON $128 $132 $136 $140 $145 $149 RATES BY CONTAINER SIZE 30 $62.16 $71.49 $74.35 $77.32 $80.41 $83.63 60 $77.03 $88.58_ $92.12 $95.81 $99.64 $103.63 90 $90.54 $104.12 $108.29 $112.62 $117.12 $121.80 120 $108.78 $125.10 $130.11 $135.31 $140.72 $146.35 150 $122.30 $140.64 $146.27 $152.12 $158.20 $164.53 180 $137.16 $157.74 $164.05 $170.61 $177.43 $184.53 _ 210 $153.38 $176.38 $183.44 $190.78 $198.41 $206.35 240 $165.54 _ $190.37 $197.99 $205.91 $214.14 $222.71 270 $179.05 $205.91 $214.15 $222.71 $23L62 $240.88 _ 300 $217.57 $250.20 $260.21 $270.62 $281.44 $292.70 600 $377.03 $433.58 $450.92 $468.96 $487.72 $507.23 ........_........ 900 $536.49 $616.96 $641.64 $667.30 $693.99 $721.75 1200 $695.95 $800.34 $832.35 $865.64 $900.27 $936.28 1500 $855.40 $983.72 $1,023.03 $1,063.99 $1,106.55 $1,150.81 1800 $1,014.86 $1,167.09 $1,213.78 $1,262.33 $1,312.82 $1,365.33 ROLLOFF PICKUP CHARGE $150.15 $172.67 $179.58 $186.76 $194.23 $202.00 DISPOSAL FEE FOR ROLLOfFS,PER TON $128.00 $132.14 $136.28 $140.41 $144.55 $150.33 REVENUES_ _ STARTING FUND BALANCE $977,558 $753,418 $383,826 $557,824 $416,049 $738,859 ENTERPRISE SALES _ $2,581,185 $3,020,065 $3,194,638 $3,378,344 $3,571,636 $3,775,219 COUNTYCOMMUNITY FUNDING $30,603 $30,909 $31,218 $31,530 $31,846 $32,164 OTHER REVENUES(INTEREST,PERMITS,ADVERTISING) $10,821 $11,146 $11,480 $11,825 $12,179 $12,544 TOTALREVENUE $2,622,609 $3,062,120 $3,237,336 $3,421,699 $3,615,661 $3,819,927 EXPENSES OPERATING EXPENSES $905,153 $932,309 $960,277 $989,085 $1,018,758 $1,049,320 TRANSFERS OPERATING(PERSONNEL) $113,563 $116,97_0 $120,479 $124,093 $127,816 $131,650 POTENTIAL HR STAFF ALLOCATION SHIFT $43,000 $44,290 $45,619 $46,987 $48,397 $49,848 DISPOSAL COSTS(TIPPING FEE) $1,045,401 $1,098,082 $1,152,287 $1,208,053 $1,265,418 $1,324,892 CONTRACT RECYCLING $739,632 $761,821 $784,676 $808,216 $832,462 $857,435 CAPITAL IMPROVEMENT PLAN $0 $478,240 $0 $387,040 $0 TOTAL EXPENSES $ 2,846,749 $ 3,431,712 $ 3,063,338 $ 3,563,474 $ 3,292,851 $ 3,413,145 ANNUAL SURPLUS/DEFICIT -$224,140 -$369,592 $173,998 -$141,775 $322,810 $406,782 ENDING FUND BALANCE $753,418 $383,826 $557,824 $416,049 $738,859 $1,145,641 MINIMUM FUND BALANCE GOAL $711,687 $738,368 $765,834 $794,109 $823,213 $839,456 THREE MONTHS OPERATING $711,874 $738,368 $765,834 $794,109 $823,213 $839,456 FUND BALANCE 26.47% 11.18% 18.21% 11.68% 22.44% 33.57% 2020 CIP 2021 2022 2023 2024 2025 2026 TBD $0 $478,240 $0 $387,040 $0 $0 TOTAL $0 $478,240 $0 $387,040 $0 $0 RATE INCREASES PER YEAR j S% 15% 4% 4% 4% 4% 5/12/2021 2030 Financial Plan Info.xlsx -- CITY OF FARMINGTON Utility Funds Current and Future Debt CITY OF FARMINGTON 2030 FINANCIAL PLAN DEBT-UTILITY FUNDS EXISTING DEBT WATER FUND 2021 2022 2023 2024 2025 2026 2019A(WATER TOWER REFURBISH) $91,050 $93,050 $88,175 $89,800 I $86,300 $87,675 TOTAL WATER FUND DEBT $91,050 $93,050 $88,175 $89,800 1 $86,300 $87,675 TOTAL EXISTING DEBT $91,050 $93,050 $88,175 $89,800 $86,300 $87,675 WATER FUND FUTURE DEBT f WATER FUND 2021 2022 2023 2024 2025 2026 2022 IFL(NEW WATER TOWER) $0 $0 $271,379 $271,379 $271,379 $271,379 2022 BONDED DEBT(WATER TOWER) $0 $0 $189,000 $189,000 $189,000 $189,000 TOTAL FUTURE DEBT $0 $0 $460,379 $460,379 $460,379 $460,379 TOTAL EXISTING/FUTURE DEBT $91,050 $93,050 $548,554 $550,179 $546,679 $548,054 5/11/2021 -41- 2030 Financial Plan Info.xlsx CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN,gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Proclamations Discussion (15 Minutes) DATE: June 7, 2021 INTRODUCTION Recently the city council received a request from a resident for the city council to consider adopting a proclamation. DISCUSSION The city council approves a few proclamations each year as a part of a regular city council meeting. I wanted to provide the city council time to discuss the issue of proclamations since this group has not had the time to consider any guidelines in this area. BUDGET IMPACT NA ACTION REQUESTED Discuss the issue of city council proclamations and provide staff with any guidance you feel is appropriate.