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HomeMy WebLinkAbout08.02.21 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA August 2, 2021 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Draft 2022/2023 Budget Update (b) City Council Priorities 2021/2022 Update (c) City Council Communication and Teamwork 4. CITY ADMINISTRATOR UPDATE (a) New Liquor Store Update (b) Board and Commission Openings S. ADJOURN CITY OF © 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Draft 2022/2023 Budget Update DATE: August 2, 2021 INTRODUCTION The city council provided direction at the July 2021 work session on the first draft of the 2022/2023 city budget. I will take some time at the work session to review options for the city council to consider. DISCUSSION The first draft of the 2022/2023 city budget included a General Fund budget of$15.8 million, $3.5 million in revenues, a fiscal disparities number kept at the 2021 amount and a debt service budget of$2.26 million dollars. The draft tax levy included an 8.99% increase over the 2021 tax levy. The city council discussed the first draft in detail at the July 2021 work session. While not unanimous,the city council direction at that time was overall support for the budget and tax levy where it stands but to ask staff to adjust the budget to have the increased revenues dedicated towards projects that residents would be able to see in 2022. To either dedicate additional dollars to city council priorities for 2022 and/or reduce the draft tax levy for 2022 from where it stands today,two substantial revenue sources and one potential substantial budget reduction have been identified. • The use of$130,000 in 2020 liquor store profits can be incorporated into the budget. (This is a potential one-time revenue) • The use of$140,000 in dollars received from the Hy-Vee agreement can be incorporated into the budget. (This is a potential one-time revenue) • The General Fund fleet transfer can be reduced by$100,000. For the sake of discussion and to start the conversation with the city council, I would propose the following changes to the first draft of the 2022/2023 budget- • Add the$130,000 of liquor store profits to the General Fund revenue line item to reduce the draft 2022 tax levy to a 7.83% increase over 2021. • Add the$140,000 in Hy-Vee dollars to the General Fund and target that same amount of expenditures for increase trail maintenance to occur in 2022. • Transfer$100,000 from the General Fund Transfers (vehicles) line item to be used for two purposes. Of that amount, $50,000 can be used for additional trail maintenance in 2022 and $50,000 be set aside for the future fire engine replacement program that was discussed at the July work session. None of the budget changes proposed above are targeted for additional street maintenance at this time due to the number of state/county/city street projects that are scheduled for 2022 at this point including- * Roundabout project at Highway 3 and County Road 66 • Mill and overlay project on Akin Road • Reconstruction of Spruce Street and Division Streets As a reminder,the draft budget already includes increases in funding for the following priorities set by the city county for 2021/2022- • Mill and Overlay Projects $318,792 (Tax Levy) • Trail Maintenance $65,000 (Tax Levy) • Trail Maintenance $20,000(Local Government Aid) • Building Maintenance $29,801 (Local Government Aid) • Assistant City Administrator Position $150,000(Tax Levy) I have purposely not touched the draft 2023 budget at this time. Direction from the city council on how to proceed with the 2022 budget will help city staff adjust the 2023 budget to appropriate levels. BUDGET IMPACT The work associated with the 2022 budget development will set the direction of the financial health of the city. ACTION REQUESTED Discuss and review the options presented on the draft 2022/2023 city budget and provide staff with the appropriate direction. ATTACHMENTS: Type Description D Cover Memo Draft One Summary Documents i i I City Of X'anningtoll j Budget and Tax Levy 2021 Budget,2022 Proposed and 2023 Proposed i Company 2021 2022 Budget°l0 2023 Budget i y Budget Proposed change Proposed Change N ro n617,0761 .Tx 1 _I.p..er..t_ ..Tax..._._Re.„.__ve__._ nues Licenses and Permits I 73 3,4501 41.85%1 714,850; (2.64)%1 1 Intergovernmental Revanuo 1 667,912' 672,0871 0.63%1 677,087; 0,74%1 Charge for Service 676,197] 602,460; 4.66%I 583,804: (3.10)% 1 Fines and Forfeitures i 49,000; 49,000 0.00%1 49,000 0,00%( Investment Income 29,100 41,6001 42.96% 27,7001 (33,41)0/-1 Miscellaneous j 79,370:, 50,8781 (35,9tl)%1 50,6781 0,00%1 1 Transfers Itt1,379,6II9' 1,427,858 3.49%I 1,484,973! 4,00%1 Total Revenues 1 3,298,344; 3,577,3331 8.46%i 3,588 2921 0,31%� Expenditures Administration 1 902,915' 1,101,749; 22.02%1 1,099,267; (0,23)%; Human Resource 1 361,658; 402,112, 11.19%1 403,1811 0,27%: Dakota Broadband j 37,500; 45,5001 21.33%! 65,5001 21.98%: Finance and Risk NIDmt ' 776,287 i 818,759; 5.47%! 643,2711 2.99%' Police 1 045,796 5,285,810; 9.08%1` 5,826,6331 6.45%1 j t=ire 1 1,435,6861 1,604,6461 11.771/6; 1,603,221; (0.09)%E community Development f 1,007,849 1,059,182? 5,09%I.. 1,101,7221 4.02%'! _ 1=nglneering 1 813,895: 853,411± 4.86%= 878,268: 2.91%s Municipal Services i 1,511,187: 1,615,704; 6,92% 1,739,9671 7.69%' Parks and Recreation ; 1,317,341; 1,341,237' 1.81% 1,381,7621 3.02%i Transfers Out 822,351; 1,742,609; 111.91%? 2,756,609; 58,19% Total Expenditures 13,832,464' 15,870,719 14.74%e� 17,489,401; 10,20% •.Revenues Over(Under)Expenditures (10,534,120)1 (12,293,386) 16,70% {13,901,109)' 13,08%1 Fiscal Disparities i 2,277,659; 2,277,6591 0,00% 2,277,659; 0,00%1 General Fund Levy j 8,256,4611 10,015,7271 21.31%] 14,623,450; 16,05%; i Debt Levy 1 _. 1 Bonds 1 2,444,840; 2,099,7881 (14.11)%: 1,707,263 (18,69)%j 1 2005C Loan Repay-Storm Water Tr Adv 275,000; 166,0001 (39,64)%' 166,000: 1) 0%1 i. 2010A loan Repay-Storni Water Tr Adv 292,253: 0; (100m)°M i 2010D Loan Repay-Storm Water Tr Adv i 01 01 ( Total Debt Levy 3,012,0931 2,265,7881 (24.78)% 1,873,263; (17,32}% 1 Use of Fund Balance to Lower Debt Levy 01 1 ' t i Net Debt Levy 3,012,093; 2,265,7881 (24.78)%! 1,873,263; (17.32)°!°1 Farmington Net Tax Levy 11,268,554'. 12,281,6151 0,90%! 13,496,713: 9.68% . i 1 i Geneval Fund Detailed Non-Pi-opeily Tax ReyenueSuniniary 2020 Budget, 2021 Budget, 2022 Proposed and ZOD Proposed Object 2020 2021 2022 2023 Account Budget Budget Proposed Proposed LIQUOR LI.C.ENSE.S. 41,.7001 40,0001 37,000] 37,0001 BEER&VVINE LICENSES 1,1b01 1,1001 5501 5501 CLUB LICENSES 6001 500, 60011 MASSAGE LICENSE 350 300 5011 so GAMBLING LICENSE/PERMIT 4!.i.01 2501 ... 1501 1 661 -- I t . I OTHER LICENSE&PERMIT i'900ii" 1" 11400! 1,400 ANIMAL LICENSES 4,080 2,5001 2,0001 1,7001 Lloensos 50,080 48,3601. 41,6501 41,35,01 BUILDING PERMITS 330,000; 380.8761 690,0001 672,260! REINSPECTION FEES 1,000; 1,5001 1,2001 1,200 CODE ENFORCEMENT FEES 2,60ol5 1, 00, goo! goo, PLUMBING&HEATING PERMITS 52,5001 50,0001 60,000: 60,000; SEWER PERMITS .5,0001 01 01 0 ELECTRIC PERMITS0' 16,00 16,0001 20,000" 20,000 ISTS PERMITS 3001 300: 2604 250 UTILITY PERMITS 6,4201 I0,500, 10,5001 10,0001 SIGN PERMITS 7901 8001 7001 700 BURNING PERMITS 1,426 1,250!: 1,2601 1.,2001 OTHER PERMITS 7,000! 810001 7,0001 7,0001 Permits 423,036; 470,726! 601,800 673,5001 ,517,076 -'::':�733,46 ,� 1. .714,850 FEDERAL GRANT 5,000 5,0001 5'000E 6,000! FEDERAL AID LOCAL GOVERNMENT AID 328,3741 105,5871 105,6871! 10.5,6871 MSA MAINTENANCE 2160001 184,000; 1840001 184,000.1 POLICE AID 198,5001 198,000, 205,0001 205,000 1. "J'6 0 POST TRAINING 1r) 16je01 16,0001 16,000, FIRE AID 137,9101 142,490' 160,0001 165,000: STATE GRANT 9,0001 0: MARKET VALUE CREDIT 01 011 I COUNTY MISCELLANEOUS 13,3501 13,350 ._._7,5001 7,6001 '922,294 :.663,687-1:. .:672F 77,087 CUSTOMER SERVICE TAXABLE A CUSTOMER SERVICES NONTAXABLE 2001 210' 135! 135 .__ ___ . _.l.i , . . A 26661 3,0001 3,0001 ZONING&SUBDIVISION FEES 305 ADMINISTRATION FEES-PROJECTS 4:60 4,000; 4,0001 410001 i FIRE 237,172 C ARGES 239,227] 268,0401 28 POLICE SERVICE CHARGES 78,030: 78,8101 80,3861 81,9921 ENGINEERING FEES-PROJECTS EROSION&SEDIMENT CONTROL 8,10018,100 9,5001 9,0001 -R.66REATION FEES-GENERAL 85,000 j 76,000' 750001 75,0001 RECREATION FEES-SENIOR CTR 19,0001 15,000; 17,0001 17,000 MEMBERSHIP FEES-SENIOR CTR 8,0001 6,000: 7,5001 7,500 MOBILE MEALS-SENIOR CTR ADVERTISING 950; 7601 500 5001 ADVERTISING 1,8001 1,5001 1,5001 1,500 FRANCHISE FEE 120,0001 145,0001 14 5,000, 120,0001 C -go services hal �'�oj :565,802 b76,197 :603,004 COURT FINES 49,000; 49,000l 49,0001 49,0001: Page 1 of 2 t General Fund Detailed Non-Property Tax Revenue Summary 2020 Budget,2021 Budget, 2022 Proposed and 2023 Proposed Objeot 2020 2021 2022 2023 Account Budget Budget Proposed Prop"od Fines&l orfeitures : ......49,000 "49,000 49,000 �`'49,0001 j INTEREST ON INVESTMENTS 38,800; 29,1001 41,600; 27,7001 GAIN/LOSS INVEST MKT VALUE I Investment Income 38,D00 29,100 `41,600 :::.27,700; MISCELLANEOUS REVENUE 1,500; 31,7001 4,2001 4,2001 I CASE{OVER&SHORT RENTAL.INCOME-RRC 20,880; 18,0001 18,000, 18,0001 -RENTAL INCOME 31,700! 29,670; 28,678:;' 28,6781 DONATIONS 500: 01 Mlsc Revenue ... "`54,580 79,370 ::50,878 50,878; OPERATING TRANSFERS 1,307,5701 1,37909' 1,427,8581 11484,973 Transfers In 1,307,570 1,379,689 "1,427,858 -1,484,973; :Tota[Revenues $3,441,161.=.$3,294,018 :'.$3,577,333.:�$3,588,292' I 1 I Page 2 of 2 General Fund Expendittire Detail Summary 2.020 Budget, 2021 Budget 2022 Proposed and 2023 Woposed Company 2020 2021 2022 2023 Budget Budget Proposed Proposed anditures Administration Legislative(1005) 87,772 87,392: 87,7591 91,483- Administration(1010) 1 302,068. 321,712; 469,6411 486,3721 ifElections(1013) 44,124: 9,351: 47,948; 81250: Communications(1014) 108,6 37 114,900' 132,916! 136,582: II I City Hall(1015) 364,661. 369,560, 363,486; 376,580-: Administration 907,162 402,014 1,101,749 1,009,267 Human Resources I 349,220 361,658. 402,112. 403,181.. Human Resource(1011) 349,226: 361,658: 402,112; 403,181! Human Resources 349,228 301,658 402,442 403,181 Dakota Broadband i 24,489, 37,500: 45,500! 55,5001 Dakota Broadband j 24,489; 37,500: 45,5001 55,6001 Finance and Risk Managornent Finance(1021) 609,079- 603,097: 648,3091 670,161 Ri-sk Management(1022) 169,810` 173,190; 170,4603 173.110; Finance and Risk Management 778,889 776,267 018,759 "-843,271: Police Police Administration(1050) 1,235,377: 1,263,014 1,361,642- 1,377,907, Patrol Services(1051) 2,1838,727 2,639,752: 2,930,249: 3,234,168': Investigations(1062) 892,069: 926,430: 974,019. 993,158- Emergency Management(1054) 11,650: 16,600, 19,900 21,400!; "Police 4,677,813 4,846,796 -5,286,810 '5,626,633 Piro Fire(1060) i 1,446,410 1,435,686 1,604,646" 1,608,221 'Fire 1,446,410 1,435,666 1,604,046 '1,003,221 Community Development 1,014,867. 1,007,849 1'059,182:: 1,101,722 Planning(1030) 591,133' 567,681 624,4751 648,368: Building Inspection(1031) 423,734' 440,166; 434,707! 453,354; Cornrnunl(Y Development '1,014,807 1,007,849 -4,059,182 -1,101,722. Engineering Engineering(1070) 665,173 694,134' 746,7211: Natural Resources(1076) 129,462, 119,761: 127,595 131,6471 - - .Engineering 794,636 013,805 853,411 1 070:260 Municipal Municipal Services Streets(1072) I1,197,200! 1,268,832. 1,35B,4891; 1,472,837: Snow Removal(1073) 241,878 242,365. 267,2151 267,1301: Aunlelpal Services 1,439,018 1,611,487 -1,615,704 1,739,967 Parks and Recreation Park Maintenance(1090) 700,111, 733,607 680,974! 694,448' Rambling River Center(1093) 190,822 186,064- 231,231! 2150,683 Park&Rec Admin(1094) 287,926:! 304,383!; 326,746 321,093! Recreation Programs(1096) 99,716: 94,297-1 102,287! 105,6381 and Recreation 1,278,676 1,317,341 1,341,237 -1,381,762- Transfars,Out 3 932,207.00, 822,351.00; 1,742,609.00: 2,766,609.00! ::Total Expenditures '13,642,352 '13,832,464 151870,749 :.'-17,09,401: 7/1/20218:15:1 SAM Page 1 of 1 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: City Council Priorities 2021/2022 Update DATE: August 2, 2021 INTRODUCTION The city council developed three priorities for 2021/2022 as a part of your goal setting session earlier this year. DISCUSSION One of the priorities the city council set for 2021/2022 was to meet with all of the major landowners in the city to listen to their future plans. The city council should discuss this issue and determine how to move forward with this initiative before the fall harvest season arrives. I wanted to allow time on the work session agenda for this discussion to occur. BUDGET IMPACT NA ACTION REQUESTED Discuss the approach to take with meeting with all of the major landowners in the city. City staff will carry out the plan to get these meeting scheduled once an approach is developed. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 woo O Farmington MN,gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: City Council Communication and Teamwork DATE: August 2, 2021 INTRODUCTION The city council has been trying to schedule a discussion on your continued emphasis on teamwork and communication. DISCUSSION The city council can take time at the work session to discuss teamwork and communication as it relates to the work you are doing as a city council. Members have asked for this time in a meeting session for the past few months. BUDGET IMPACT NA ACTION REQUESTED Discuss the ongoing issues of teamwork and communication as they relate to the city council. 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: New Liquor Store Update DATE: August 2, 2021 INTRODUCTION Our new liquor store project is approaching completion and I will spend a few minutes updating the city council on where we stand at the work session. DISCUSSION I will update the city council on the status of the new space remodeling,the plan for the move of product, inventory and opening of the new store. BUDGET IMPACT NA ACTION REQUESTED Hear the update that is presented and ask any questions that you may have on the project. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 i Farmington M N,gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Board and Commission Openings DATE: August 2, 2021 INTRODUCTION The city has recently received resignations from two board and commission members. These resignations will be acknowledged on the regular city council agenda. DISCUSSION With resignations on both the EDA and the Parks and Recreation Advisory Commission,the city council should discuss how to move forward with selecting new members to serve on these boards. The city has a history that includes advertising and finding new members mid-year and also waiting until the following year to fill these vacancies. BUDGET IMPACT NA ACTION REQUESTED Discuss how to fill the vacancies that exist on the Parks and Recreation Advisory Commission and the EDA and provide direction to city staff on how to proceed.