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HomeMy WebLinkAbout09.07.21 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA September 7, 2021 5:45 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Fire Relief Association Request(20 Minutes) (b) Preliminary 2022 General Fund Budget and Tax Levy(20 Minutes) 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 goo O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Fire Relief Association Request(20 Minutes) DATE: September 7, 2021 INTRODUCTION Representatives from the Farmington Fire Relief Association will be in attendance at the work session to review the status of their retirement program and propose an increase in the yearly amount awarded to members. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Hear the request made by the Farmington Fire Relief Association and provide guidance to city staff on how to proceed. ATTACHMENTS: Type Description D Cover Memo What is the Fire Relief D Cover Memo Raise Proposal Farmington Fire Department ReliefAssociation What is a Relief Association The Farmington Fire Department Relief Association is a nonprofit corporation that exists to provide a retirement incentive, disability and or death reimbursement for the Farmington Fire Department paid on-call firefighters. Relief associations are considered governmental entities. Therefore, they have similar rights, duties and responsibilities as other governmental entities, such as a city but is, but is separate from the city. As a governmental entity, the Relief Association manages the retirement money for the firefighter, so that he/she has a good retirement benefit. The money it receives and manages goes to a "Special Fund" and is public money budgeted by the city specifically for pension benefits for the Department members. This money can only be spent by the Relief Association for this purpose governed by MN Law. The hope is that this will allow the city to recruit and retain good, well-trained, experienced people to provide fire suppression services and medical care to the communities they serve. (MN Statute 424A.001, 424A.002, 424A.01) Is the Relief Association part of the Fire Department? No, the Relief Association is a separate legal entity from the Farmington Fire Department. Its purpose is to provide benefits to the Fire Department Members. The Relief Association is governed by Bylaws and Policies voted on by its members. (MN Statues 424A.02, 424A.021, 424A.03, 424A.015, 424A.05, 424A.06, 424A.07) Who runs the Relief Association The Relief Association is governed by a "Board of Trustees." The board's activities include determining plan benefits and funding requirements/contributions, maintaining necessary administrative records, approving expenditures, and investing pension plan assets. The Board consists of 9 members: The mayor, The City Manager, The Fire Chief, and 6 Firefighters. (MN Statue 424A.04) Pension - The Farmington Fire Pension is a onetime payout for vested members at the time of retirement and age 50. All increases in the pension must be approved by the City Council. The City uses public money to support the pension. This money is placed into a "Special Fund" account and managed by the Relief Association with the guidance of a Financial Planner. This money is allocated into various funds with the sole purpose to obtain the highest yield. The distribution of this money is strictly regulated by the state. - This "Special Fund" account has to have enough money to payout each member of the Fire Department that is eligible to receive benefits. Every year this account is rebalanced. If the money from the investments do not yield enough for that year, the City has to add to the "Special Fund" to make it balanced again. They are legally obligated in accordance with Minnesota Law to balance this fund. Poor economic times causing a poor yield to the funds and/or multiple members retiring in the same year can cause a short fall to the "Special Fund" account. - Each Fire Department member has to be active for a minimum of 10 years to become vested. A vested member will receive a pension after they retire from the department, and are at least 50 years old. This pension is a onetime payment based on years of service. Death and disability are two other ways a member can receive a pension benefit. This is all regulated by MN state law and bylaws of the Relief Association governed by the Board of Trustees. (MN Statute 424A.02) Finances• Special Fund: Account that holds all of the pension funds. - Money from City Contribution, State Contribution and Investments General Fund: Non-Pension Money -The Finances that the Relief Association receives are governed by separate MN State statues, as well as by the Relief Association's articles of incorporation and bylaws. Because Relief Associations are required to maintain control of their own funds, they utilize a separate account from the pension account. This account is called the General Fund. - "General Fund" (MN Statue 424A.06) - This account is funded from fund-raisers and donations to the Relief Association. This account and the use of its money are regulated by the Relief Associations bylaws. No public money from the city is placed into this account in accordance to MN state laws. - In 2012 we started doing Charitable gambling. On an average year we have a profit of around $100,000. We give out $30,000 in college scholarships and the majority of the remaining money gets donated to the City of Farmington. This money has been used to purchase extra equipment that the city has not been able to afford. 9-1-2021 Mr. David McKnight-City Administrator 430 Yd Street Farmington, MN 55024 Dear Mr. McKnight, As President of the Farmington Firefighters Relief Association I would like to propose a series of modest increases to the annual pension contribution our firefighters are awarded for their years of service beginning January 1, 2022. The current benefit is $7,500 per year of service. We are asking for a pension increase of $1,000. This would be the $500 from 2020 and $500 for 2021. Our Plan was: 2019 from $6,500 to $7,500 2020 from $7,500 to $8,000(Skipped, Covid Uncertainty) 2021 from $8,000 to $8,500 Please allow me to offer some factors to consider regarding this request and my recommendation: 1. The Benefit of the Pension: In the State of Minnesota nearly 90%of all fire departments are comprised of volunteer or paid on call firefighters. This proud tradition relies upon dedicated members of the community to provide emergency services in time of community need. Here in Farmington we are immensely proud of our 143 years of consistent service to the community using generations of volunteer and paid on call personnel. This kind of community involvement saves a community like Farmington millions of dollars per year in personnel and benefit costs. In comparison to a career firefighter,our paid on call firefighters earn a substantially smaller hourly pay rate and retirement benefit while providing the same services of a career firefighter with the same levels of training and certification requirements. The pension offered through fire relief is critically important to maintain the stability of having senior firefighters and to contribute to the growth of a new generation of firefighters who can provide 20 years or more of service to the City of Farmington. The pension represents a career of service and is a symbol of thanks for the hard work and selfless dedication that members give to the community. Farmington firefighters donate hundreds if not thousands of hours to the community as they represent our fire department at block parties, school tours,parades, and countless public education events throughout every year. As you know, it costs a lot of money to recruit, train and most importantly retain a paid on call firefighter. Volunteer and paid on call fire departments all over the United States are struggling to keep members with all of the increased training and call requirements. A strong annual pension contribution will assist us in attracting and retaining a competent firefighting staff for years to come. Life is busier than ever before and we find it harder and harder to attract members of the community who can give the time and energy to becoming a paid on call firefighter. In order to be competitive we must increase the annual pension contribution. Doing so will help us to retain firefighters who may look at an early out rather than invest in a 20 year career at Farmington. It is my belief that we would retain a larger group of 20 year members if the payout were greater as these members contemplate retirement. 2. Reasonable Pension Increase Request: The Farmington Firefighters Relief Association believes the request to increase the annual pension benefit is reasonable and necessary to stay competitive with similarly situated Metro area lump sum relief association benefits. This is a method to retain and motivate firefighters who give considerable commitment to the city. The neighboring cities have increased their pension rates and will be continuing to do so in the near future. I have communicated with all of the neighboring communities and their goal is to have a pension rate of$10,000 per year by 2023. This will put us a major disadvantage for recruiting and keeping our current firefighters. 3. The Value of Consistent Community Support of the Pension Benefit: The Farmington Fire Relief Association believes there is a value in consistent community support. The commitment by the city to contribute $150,000 into the relief pension has not gone unnoticed by the firefighters. Knowing that the city is doing what it can to support the firefighters has contributed to increased morale and dedication by the firefighters to make this a great fire department and city to work for. 4. Long Term Fund Sustainability: The Special Fund investment account managed by the Farmington Fire Relief Association is currently beyond a fully funded status at 152%. It has continued to grow steadily since 2009 after the stock market crash. 5. City Financial Impact: The Relief Association pension portfolio is currently 152%and over funded. With the pension increase to $8,500 it will put the relief association at 138%, and still over funded. Our goal is to stay above 115%and remain overfunded at all times. This built in cushion allows for a significant down turn in the stock market and will greatly reduce the possibility of the city being required to contribute to the Relief Association Pension. 6. What caused the pension fund to grow so rapidly We have enjoyed a strong return on our investments over the past several years. A couple of members had ten years on the department which only entitles them to 60% of their retirement, other members did not complete the required ten years of service to become "vested" and subsequently they did not receive any portion of their retirement. This "extra money" has stayed with the pension fund and helped it grow very rapidly. 7. Future Projections: The future goals of the pension rely upon two income sources to stay the same. The first is an unknown; the stock market. If the stock market continues to grow the funding in the account will grow. The second is the city contribution. We need to maintain the current funding to this account to see additional growth in the fund. We have a number of individuals who will be eligible to retire with 20 years of service in the next couple of years. In addition,we have numerous individuals who have already reached the ten years of service level. If our request is approved, our members are hoping to see a pension rate of$8,500 by 2022. The surrounding fire relief associations are aiming for$10,000 by 2023. This still puts us $1,500 down from what other funds plan to offer, but it shows an effort by the city to support the firefighters without adding additional cost to the city. We believe that conservative, measured and managed pension benefit increases are both reasonable and necessary to maintain an appropriate firefighting force in the City of Farmington. Here are some Comparison numbers from other metro departments: VOLUNTEER FIRE DEPARTMENT City 2020 Hourly 2020 Pension Apple Valley Hourly $17 Pension $7,000 Chanhassen Hourly $13.79 Pension $6,800 Cottage Grove Hourly $18 Pension $6,000 Golden Valley Hourly $17.83 Pension $9,200 Inver Grove Heights Hourly $14.25 Pension $10,000 Lakeville Hourly $15.50 Pension $10,000 Rosemount Hourly $14.00 Pension $8,000 Savage Hourly $15.03 Pension $6,381 Prior Lake Hourly $14.10 Pension $8,500 Northfield Hourly $21.63 Pension $10,000 Shakopee Hourly $14.62 Pension $9,800 Hastings Hourly $15.65 Pension $7,000 Farmington Hourly 13.26 Pension $7,500 Thank you for the opportunity to provide this information and open a dialogue on this important matter. Sincerely, Jeffrey A. Allbee-President Farmington Firefighters Relief Association CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON 651-28o-6800 { Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Preliminary 2022 General Fund Budget and Tax Levy (20 Minutes) DATE: September 7, 2021 INTRODUCTION Minnesota state statute requires the proposed property tax levy for the upcoming year to be certified to Dakota County on or before September 30th each year. The city council is being asked to adopt the 2022 proposed property tax levy which will be included in the proposed property tax statements that are mailed to taxpayers in November. DISCUSSION The city council discussed the 2022 General Fund budget and tax levy at work session in July, August and September 2021. The city council discussed matching the three priorities that were set for 2021 and 2022 represented in any growth in the tax levy. The three priorities set by the city council include- 1. Business Growth 2. Community Engagement 3. Infrastructure Support During the budget work session discussions,the city council asked that any increase in the tax levy be focused on the priorities set by the city council and as visible as possible to the community. The proposed budget and tax levy are shown below- 2021 Budget 2022 Proposed Increase Budget (Decrease) Revenues $3,298,344 $3,711,583 12.53% Expenditures $13,832,464 $15,829,719 14.44% Fiscal Disparities $2,277,659 $2,351,400 3.24% General Fund Levy $8,256,461 $9,766,736 18.29% Debt Levy $3,012,093 $ 2,265,788 (24.78%) Net Tax Levy $11,268,554 $12,032,524 6.78% General Fund Revenues Revenues have continued to move in a positive direction overall since the start of the pandemic. The current draft of the budget has revenues at$3,711,583 which represents a 12.53% increase over 2021. The General Fund has revenues outside of the tax levy. These revenues come from a variety of sources shown below. 2021 Budget 2022 Proposed Increase Budget (Decrease) Licenses and Permits $517,076 $736700 42.47% 1 ntergovern mental Revenue $667,912 $672,087 0.63% Charges for Service $576,197 $602,460 4.56% Fine and Forfeitures $49,000 $50,000 2.04% 1 nvestment I ncome $29,100 $41,600 42.66% Miscellaneous $79,370 $180,878 127.89% Transfers In $1,379,689 $1,427,858 3.49% Total Revenues $3,298,344 $3,711,583 12.53% Revenue items of note for the proposed 2022 budget include: • Permit revenue is projected to increase by$219,624. This increase is attributed both to the increased number of homes being built in Farmington and the continued permit revenue from items such as new decks, basements, bathrooms, etc. • Investment income is proposed to increase by$12,500. This is based upon our historical returns the past few years. • Miscellaneous revenue is proposed to increase by$101,508 based upon our historical average. General Fund Expenditures There have been a number of reviews and revisions in an effort to lower the overall levy increase. The proposed 2022 expenditures are summarized below- 2021 Budget 2022 Proposed Increase Budget (Decrease) Administration $902,915 $1,099,249 21.74% Human Resources $361,658 $402,112 11.19% Dakota Broadband $37,500 $45,500 21.33% Finance/Risk Management $776,287 $818,759 5.47% Police $4,845,796 $5,279,810 8.96% Fire $1,435,685 $1,592,646 10.93% Community Development $1,007,849 $1,059,182 5.09% Engineering $813,895 $850,411 4.49% Municipal Services $1,511,187 $1,609,704 6.52% Parks and Recreation $1,317,341 $1,329,737 0.94% Transfers Out $822,351 $1,742,609 111.91% Total Expenditures $13,832,464 $15,829,719 14.44% Human Resources Costs All of the budgets include estimated human resources costs based upon estimated union contract negotiations/settlements and estimates for employee benefits and workers compensation premiums. Union contract negotiations are currently underway with all four of our unions. We have also been notified that we will receive a 5%increase in our health insurance premiums for 2022. Expenditure items of note in the draft 2022 budget include- • The Administration budget includes budgeted dollars for the Assistant City Administrator position that was added in mid-2021. • The three police budgets have a variety of smaller increase that make up the majority of their proposed increase for 2022. There is a larger increase in the benefits line item that may be able to be reduced depending on the outcome of current negotiations. • The Fire budget also has a number of smaller increase that make up for their proposed increase for 2022. Two of these increase include dollars for looking at future station needs of the department and dollars to start to replace tables and chairs that are used on a regular basis. Operating Transfers The operating transfers portion of the proposed General Fund budget represents the largest dollar increase for 2022. This budget is used for a variety of items that current and previous city council's have listed as priorities, are projects that funding carries over from year to year and/or items that the city council/staff want to emphasize for a variety of reasons. The proposed 2022 General Fund Transfers budget is proposed to increase from $822,351 in 2021 to $1,742,609 in 2022. The significant increases in this budget include- • I ncrease in the mill and overlay line item of$318,792 to a total of$650,000 to complete the mill and overlay of Akin Road in 2022. • Trail maintenance line item increase of$65,000 to a total of$135,000 to continue to address and improve the condition of our trail system on an annual basis. • The addition of$175,000 as a portion of the first debt repayment that will be associated with the Spruce and Division Streets/Parking Lot project in 2022. • The General Fund has not had a realistic and dedicated line item for vehicle and equipment replacement for a number of years. The 2022 draft budget includes $475,000 for vehicle purchases. This is a $331,011 increase over 2021. This line item has some significant purchases lining up in future years including a grader,vac truck and more. Fiscal Disparities This is a metro wide program that is used to balance the development of commercial and industrial growth throughout the region. The city has received a preliminary estimate of the final number which includes an increase of$73,741. Debt Levy The Debt Service Fund budget provides funding for scheduled debt service and interest repayment obligations, as well as ongoing trustee, assessments, arbitrage and post-issuance compliance fees related to the city's debt. The levy includes both general obligation bonds and interfund loans. The 2022 debt levy is 24.78% lower than the 2021 debt levy. The reduction is due to paying off debt including that associated with the police station construction. Details on the debt levy obligations are included with this memo. Additional Note The city continues to make progress to reach adequate funding levels in a number of areas including pavement management, trail maintenance, building maintenance and fleet replacement. I have tried to achieve as many of the priorities that individual city councilmembers shared during work session discussions. While I think this budget achieves a lot of the priorities, in reality not all of them can be met in 2022. One item that is not yet reflected in the budget, but will be included in the final version in December is the use of the"additional" dollars we expect from the Hy-Vee assessments. In analyzing the options for the use of the dollars, I am proposing that we purchase three lawn mowers for the Parks and Recreation Department that are in need of replacement. This expenditure will use all of these potential one-time dollars and not impact the proposed tax levy. The estimated market value of the average residential property in Farmington will be$282,815 in 2022. This is up 3.95%from the 2021 average residential property. The current proposed 2022 tax levy amount would increase the city tax on the average property by$76 per year. BUDGET IMPACT The budget impact is summarized with the content of this memo. ACTION REQUESTED Hear the presentation made by city staff and ask any questions you may have. Once the city council is comfortable, a motion should be made to- 1. Adopt the attached resolution establishing the 2022 preliminary tax levy as proposed. 2. Set the public input meeting date prior to the adoption of the final 2022 budget and tax levy for Monday, December 6, 2021 at 7:00 p.m. ATTACHMENTS: Type Description D Resolution 2022 Preliminary Levy Resolution D Backup Material 2022 General Fund Budget Summary Backup Material 2022 General Fund Revenue Summary D Backup Material 2022 General Fund Expenditure Summary © Backup Material 2022 Debt Levy D Backup Material 2022 Transfers Spreadsheet D Cover Memo New Tax Capacity Growth Chart D Cover Memo 2022 Tax I mpact RESOLUTION NO. R -2021 A RESOLUTION APPROVING THE 2021 PROPOSED TAX LEVY COLLECTIBLE IN j 2022 Pursuant to due call and notice thereof, a regular meeting of the City Council of the city of Farmington was held at the Farmington City Hall on the 20'x' day of September 2021 at 7:00 pan. Members Present: Members Absent: Member and Member € introduced and seconded the following: WHEREAS, Minnesota State Statute currently in force requires certification of the proposed tax levy to the Dakota County Auditor on or before September 30,2021; and WHEREAS,the City Council of the city of Farmington,Minnesota is in receipt of the proposed 2022 revenue and expenditure budget; and WHEREAS, the City Council shall use existing City revenues to meet the annual debt obligations for 2016B GO Capital Improvement Plan Refunding Bonds$29,848; thereby reducing the total debt levy issued and collected from property taxes of$640,000. NOW,THEREFORE,BE IT RESOLVED by the Mayor and City Council of the city of Farmington that the following sums of money be levied in 2021, collectible in 2022,upon the taxable property in said city of Farmington forthefollowing purposes: I General Fund $12,118,136 Debt Levy 12JL5,.788 Gross Levy $14,383,924 Fiscal Disparities - $2,351,400 Net Tax Levy $12,032,524 This resolution was adopted by recorded vote of the Farmington City Council in open session on the 20"'day of September 2021. Joshua Hoyt,Mayor Attested to on the day of September 2021. David McKnight, City Administrator SEAL I i I 202213UDGET Summary of Debt Service levy to be attached and become part of this resolution. Fund Proiect Lew Amount 3093 2015A GO Improvement Bond $335,500 3094 2016A GO Refunding Bond $624,750 3136 2016B GO Refiulding Bond $640,000 3138 2019A GO Street Reconstruction Bond $231,525 3139 2020A GO Equipment Certificates $268,013 Total Bond Financing $2,099,788 3130 2005C GO Capital Improvement Bond $166,000 Total Debt Levy $2,265,788 The amount levied is less than the required amounts from the payment schedule for some of the bonds. The bonds are listed on Form B which is part of this resolution. The city has sufficient revenues in the bond Rinds to meet the debt obligations. I I City of Farmington,Levy Certification,Debt Service Schedule. Form B Net Levy Original Amount Per Increase Certified B.U. Bond Issue Principal Date Issued Bond Book (Decrease) Debt Levy Notes 3093 GO Street Reconstruction 2015A $ 3,050,000 10/15/2015 $ 284,235 $ 51,265 $ 335,500 3094 GO Refunding 2016A $ 3,450,000 12/1/2016 $ - $ 624,750 $ 624,750 3136 Cap Imp Plan Refunding 20168 $ 4,540,000 12/1/2016 $ 669,848 $ (29,848) $ 640,000 A 3138 GO Street Reconstruction 2019A $ 1,645,000 5/15/2019 $ 231,525 $ $ 231,525 3139 GO Equipment Certificates 2020A $ 1,105,000 2/19/2020 $ 268,013 $ $ 268,013 Total Bond Financing $ 13,790,000 $ 1,453,620 $ 646,168 $ 2,099,788 3130 2005C GO Bonds Internal Loan Repayment $ 2,280,000 7/5/2005 $ - $ - $ 166,000 B Total Debt $ 16,070,000 $ 1,453,620 $ 646,168 $ 2,265,788 Agrees to I hereby certify that the above schedule of bond levies to be spread on the payable 2021 tax rolls agrees with the City ( preliminary debt records. A copy of the corresponding debt levy resolution is attached. III levy adopted by { council on 9/20/2021 9/20/2021. Finance Director Date (A)Existing revenues in the respective bond fund are being used to meet the annual debt obligations. (B)Bonds optionally redeemed with an internal loan from the city. Loan is being repaid with debt levy, I City of Farnihigtotl Budget attd Tax Levy 2021 Budget,2022 Proposed and 2023 Proposed Company 2021 2022 Budget% 2023 Budget o/° Budget Proposed Change Proposed Change . ...... ........ ......._........ Non-Property Tax Revenues 1 Licenses and Permits 517,0761 736,700 42.47% 718,100`; (2.52)% Intergovernmental Revenuej 66712,9 672,087; U3%. 677,087; 0.74% Charge for Service ! 576 197; 602,460; 4.56% 583,8041 (3.10)%! Fines and Forfeitures 49,000! 50,000s, 2,04% 50 000; 0.00%; Investment Income 29,100 41,600' 42,96% 27,700 (33,41)%! Miscellaneous 79,370; 180,8781 127.89% 50,878: (71.87)%j Transfers In 1,379,689; 1,427,858, 3.49%' 1,484,973; 4.00%1 Total Revenues 3,298,344 3,711,5$3 12.53% 3,592,5421 (3.21)%! j Expenditures j I Administration 902,915 1,099,249% 21.74% 1,097,067; (0.20)%! Human Resource 361,658; 402,112 11.19% 403,181 0.27%1 • Dakota Broadband 37,500: 45,500; 21.33% 55,500; 21.98%1 Finance and Risk Mgmt 776,287:i 818,759: 5,47%. 843,271' 2.99% i Police 4,845,796' 5,279,810 8.96% 5,625,633 655% Fire 1,435,685' 1,592,646: 10.93%. 1,608,221: 0.98% Community Development 1,007,$49 1,059,1821 5.09% 1,101,722: 4.02% Engineering 813,895; 850,411! 4.49% 874,953' 2,89% _.. _ . .. j Municipal Services 1,511,187] 1,609,7041. 6.52% 1,732,967; 7.66%: Parks and Recreation 1,317,3411 1,329,737; 0.94% 1,378,512; 3.67% Transfers Out 822,351; 1,742,609,: 111.91% 2,756,609!. 58.19%1 Total Expenditures 13,832,464' 15,829,719; 14.44% 17,477,636. 10.41%' Revenues Over(under)Expenditures (10,534,120)1: (12,118,136)' 15.04%' (13,885,094); 14.58% Fiscal Disparities 2,277,659' 2,351,400; 3.24% 2,351,400; 0.00% General Fund Levy 8,256,461 1 9,766,736' 18.29% 11,533,6941 18.09% j Debt Levy j i Bonds 2,444,$401 2,099,788: (14.11)% 1,707,263; (18.69)%! 2005C Loan Repay-Storm Water Tr Adv 275,0001 166,000 (39.64)% 166,000' 0.00% j 2010A Loan Repay-Storm Water Tr Adv 292,2531 0 (100.00)% j 2010D Loan Repay-Storm Water Tr Adv 0i 0 Total Debt Levy 3,012,093: 2,265,7881 (24.78)%: 1,873,263: (17.32)% Use of Fund Balance to Lower Debt Levy 0 Net Debt Levy 3,012,093; 2,265,788 (24.78)% 1,873,263 1. (17.32)%j Farmington Net Tax Levy 11,268,554! 12,032,524. 6.78% 13,406,957: 11.42%! Location: Documents\FARMINGTON\Budget 2022-202311 General Fund Budget Summary Page 2021 Base w/DBB Amend 8/25/2021 10:37:21 AM General Fund Detailed Non-Property Tax Revenue Summary 2020 Budget,2021 Budget, 2022 Proposed and 2023 Proposed Object 2020 2021 2022 2023 Account Budget Budget Proposed Proposed _..-. LIQUOR LICENSES 41,7001 40,000, 40,000 40,000' BEER&WINE LICENSES 1,1001 1,1001 8001 800; 1 CLUB LICENSES 5001 5001 5001 500; MASSAGE LICENSE 350! 3001 501 50: GAMBLING LICENSE/.PERMIT 4501 2501 150; 1501 OTHER LICENSE&PERMIT 1,900' 1,7001 1,4001 1,400 i ANIMAL LICENSES 4,080 2,500; 2,0001 1,700: 1 Licenses 50,080! 46,350 44,900; 44,600; i BUILDING PERMITS 330,000; 380,876 590,000 i 572,2501 REINSPECTION FEES 1,000' 1,500. 1,2001 1,2001 COBE ENFORCEMENT FEES 2.600 1,500; 900' 900'; PLUMBING&HEATING PERMITS 52,500; 50,000; 60,000; 60,0001 i SEWER PERMITS 5,0001 0 0` 0 _ ..... ELECTRIC PERMITS 16,000; 16,000; 20,000; 20,000; ISIS PERMITS 300; 300; 250; 250` j UTILITY PERMITS 6,420; 10,500; 10,500; 10,000: SIGN PERMITS 790; 8001' 700; 700;' BURNING PERMITS 1,4251 1,250; 1,250; 1,200: OTHER PERMITS 7,000; 8,000; 7,000; 7,000; Permits 423,0351 470,726: 691,800; 673,500: :Licenses and Permits 473,115 517,076 736,700 718,100; FEDERAL GRANT 5,000, 5,000; 5,000: 5,000; FEDERAL AID LOCM.GOVERNMENT AID 328 374; 105,5871 105 587; 105,587 MSA MAINTENANCE 215,0001 184,000 184,000 184,000 POLICE AID 198,5001 198,000: 205,0001 205,000: POST TRAINING_ 15,1601i 15,1601 15,0001 15,000 - ' ' FIRE AID 137,910 142,490; 150,000; 155,000; 1 STATE GRANT 9,0001 0 1 MARKET VALUE CREDIT 0; 0; COUNTY MISCELLANEOUS 13,3501 13,350 7,500; 7,5001 Intergovernmental $22,294 :.. 663,587 672,087 ' .'677,097; CUSTOMER SERVICE TAXABLE 1 j { CUSTOMER SERVICES NONTAXABLE 2001 210: 135; 1351 ZONING&SUBDIVISION FEES 3,0501 2,600.' 3,000' 3,000; ADMINISTRATION FEES-PROJECTS 4,5001 4,000; 4,0001 4,0001 _ FIRE CHARGES 237,1721 239,227; 258,9401 264,1771 POLICE SERVICE CHARGES 78,0301 78,810: 80,385; 81,992; ENGINEERING FEES-PROJECTS 1 EROSION&SEDIMENT CONTROL 8 100' 8,100 9,500 9,000' RECREATION FEES-GENERAL 85,0001 75,000' 75,0001 75,0001 RECREATION FEES-SENIOR-CTR 19,0001 15,000!, 17,0001 17,000! MEMBERSHIP FEES-SENIOR CTR 8,000: 6,000'! 7,5001 7,5001 MOBILE MEALS-SENIOR CTR I ADVERTISING 9501 750 5001 500 ADVERTISING 1,800; 1,500 1 1,5001 1,5001 j SALES OF ASSETS 0? 0 FRANCHISE FEE 120,000' 145,000; 145,0001 120,0001 Charges For Services 565,802 576,197 602,460 -583,804; Page 1 of 2 i General Fuad Detailed Non-Property Tax Revenue Summary 2020 Budget,2021 Budget, 2022 Proposed and 2023 Proposed Object 2020 2021 2022 2023 Account Budget Budget Proposed Proposed COURT FINES. . 49,000 � 49,000 50,000 50,000 Fines.&Forfeitures 49,000 49,000 50,000 50,000 INTEREST ON INVESTMENTS 38,800] 29,1001 41,600! 27,700 GAINILOSS INVEST MKT VALUE j Investment income 38,800 . ' `'.`.29,100 '41,600 :27,700 i MISCELLANEOUS REVENUE 1,500; 31,700; 134,200';; 4,2001 CASH OVER&SHORT RENTAL INCOME-RRC 20,880; 18,000: 18,0001 18,000 RENTAL INCOME 31,700; 29,670; 28,678; 28,678, DONATIONS 500; 0 Misc Revenue54,580 :. 79,370 .180,878 50,878!. OPERATING TRANSFERS 1,307,5701 1,379,689 1,427,8581 1,484,973 Transfers In 1,307,570 1,379,689 1,427,858 9,484,973; Total Revenues., $3,411,161 $3,294,019.1$3,711,583 '$3,592,542, Page 2 of 2 General bund Expenditure Detail Summary 2020 Budget,2021 Budget 2022 proposed and 2023 Proposed Company 2020 2021 2022 2023 Budget Budget Proposed Proposed ................. _..... .._...._..... : ....... Expenditures Administration Legislative(1005) 87,772: 87,392; 87,259' 91,483 Administration(1010) 302,068; 321,712; 469,6411 486,372' Elections(1013) 44,124 9,351; 47,948; 8,250 Communications(1014) 108,537, 114,900; 132,916; 136,582. City Hall(1015) 364,661: 369,560' 361,485; 374,380; Administration 907,162 902,915 1,099,249 1,097,067; Human Resources 349,226. 361,658` 402,112; 403,181; Human Resource(1011) 349,226' 361,658; 402,112, 403,181: Human Resources 349,226 361,658 402,112 403,181 Dakota Broadband 24,489' 37,500 45,500: 55,500: Dakota Broadband 24,489; 37,500; 45,500; 55,500; :Dakota Broadband 24,489 37,500. : 45,540.` 55,504: Finance and Risk Management Finance(1021) 609,079' 603,097 648,309: 670,161: Risk Management(1022) 169,810; 173,190 170,450; 173,110 Finance and Risk Management 778,889 776,287 818,759 843,271 Police Police Administration(1050) 1,235,377; 1,263,014; 1,356,642: 1,377,907. Patrol Services(1051) 2,538,727: 2,639,752 2,929,249; 3,233,168. Investigations(1052) 892,059. 926,430. 974,019; 993,158 Emergency Management(1054) 11,650 16,600. 19,900" 21,400 Police 4,677,813 4,845,796 5,279,810 5,625,633 Fire Fire(1060) 1,445,410 1,435,685; 1,592,646, 1,608,221 Fire 1,445,410 1,435,685 1,592,646 1,608,221, Community Development 1,014,867: 1,007,849; 1,059,182' 1,101,722 Planning(1030) 591,133: 567,681 624,475; 648,368; Building Inspection(1031) 423,734 440,168: 434,707; 453,354 Community Development 1,014,867 1,007,849 :. 1,059,182 1,101,7221 Engineering Engineering(1070) 665,173 694,134; 725,816; 746,721; Natural Resources(1076) 129,462: 119,761; 124,595` 128,232; Engineering 794,635 813,895 850,411 874,953: Municipal Services Streets(1072) 1,197,200' 1,268,832 1,358,489 1,472,837 Snow Removal(1073) 241,878 242,355; 251,215; 260,130: Municipal Services 1,439,078 1,511,187 1,609,704 1,732,967 Parks and Recreation Park Maintenance(1090) 700,111, 733,607] 677,974; 694,448; Rambling River Center(1093) 190,822, 185,054; 227,7311 259,333; Park&Rec Admin(1094) 287,925 304,383; 324,7451, 321,093' Recreation Programs(1095) 99,718. 94,297; 99,2871 103,638:; Parks and Recreation 1,278,576 1,317,341 1,329,737 1,378,512 I Transfers Out 932,207.00' 822,351.00; 1,742,609.00; 2,756,609.00; Transfers.Out 932,207.00 822,351.00 1,742,609,00 2,756,609.00; Total Expenditures 13,642,352 13,832,464 15,829,719 17,477,636 8/25/2021 10:38:31 AM Page 1 of 1 2022 Proposed Debt Service i 2022 Proposed 2022 Proposed 2022 2022 Proposed 2022 2022 Proposed 2022 Proposed Object 2005C(3130)Storm 2013A(3491)Rd& Proposed 2416A(3094)Rd Proposed 2019A GO 2020A FIRE Account Water Trunk Loan Br Fund 2015A(3093) &Br Fund 20168(3136) CAPITAL IMP EQUIPMENT 2-1-16 BOND CERT 4000-REVENUE AND EXPENDITLI i 4001 -REVENUES 4011 -CURRENT PROPERTY TA 166,000 0 335,500; 624,750' 640,000; 231,525: 268,013; Property Taxes 166,000', 01, 335,500 624,754; 640,0001 231,525? 268,013 4110-SPEC ASSESS CURRENT 0i 276,197; Special Assessments 0! 276,1971 4955-INTEREST ON INVESTM 100; 4,100; 2,20011 5,900i 2,700' 1,100' 800; Investment income 1001 4,1001 2,2001 5,9001 2,700' 1,1001 600' Total Revenues $18ti,70D $4,100 `' .::$337,700 $906,847 '.$642,700 :$232,625 $268,813 6001 -EXPENDITURES 7110-DEBT PRINCIPAL 520,0001, 220,000'. 535,000; 525,000% 190,000. 200,000; 7120-DEBT INTEREST 5,200; 49,000' 21,150!; 100,825; 26,250 50,250; 7130-FISCAL AGENT FEES 4,9501 2,950; 5,915: 2,950, 2,950 2,950; 7140-LEGAL&FISCAL FEES 1,3D0 1,200; Debt Service 531,450; 271,950; 563,2651 626,775; 218,200 253,2001 Total Exp 531,450i271,950 i 563,265 628,7751 218,200; 253,200 7310-OPERATING TRANSFERS 166,000; 306,900' Transfers Out 166,000; 306,900: Other Financing Sources (166,000); (306,900); Net Change in Fund Balance : $100 ($527,350) $65,750 $36,682 .: $13,925 $14,425 ::...,_... $15,613. Location: Documents\FARMINGTOMBudget 2022-20231Debt Detail for 2021-Updated Teah`s Page 1 of 1 I . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . .. .. .. . . . . � { . . . . . . . . . . . . . . . . . . . . . . . . . . § , § „ a ■ . � | � a � fk #K#K s. s. 2 {m2 § 2 !z(-; )|§ < = d/ {kk � |� ■ ¥ ¥} . « ;E © ■ 2! % * � !� § ■ § � ■!z._; � o F- l� !,.l. § ■a;|a■ !!|! \ 7 ° .28 22 \ ■ . � ■!�! ; ■ § LU }r U. _z � �( §§ § k § ; ( gi � ) � ! ! ■ § ` ! ` ) $ $ § § , ■ § k # • # • • § . . § • . . . l . kKk ¥ k $ k #i o � ■ r E ■ # # ; & . ; ■ e , § ! (MCL)1os3S"1 CITY OF FARMINGTON NEW TAX CAPACITY GROWTH PERCENTAGE 2.50% 2.00% 1.93% i 1.50% 1.47% 1.49% p 1.30% 1.21% 1.22% 1.19% 1.12% 1.00% 0.97% 0.87% 0.87% 0.85% 0.56% 0.50% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Five Year Rolling Average File Name:2022TXCALC Location; PABudget Date: 8/31/2021 15:05 Prepared By:CR Home Value: $282,815 Payable 2022 Payable 2021 Home value: TC Rate: 0.50068 Home value: TC Rate: 0.49251 $272,070 $272,070 Tax Cap. $2,720.70 Tax Cap. $2,720.70 City Portion taxes: $1,362.20 City Portion taxes: $1,339.97 Effect on taxes-no market value change: $22.23 Monthly $ 1.85 Home value: Est. Market Increase: 0.0395 Home value; 0.49251 $282,817 $272,070 Tax Cap. $2,828.17 Tax Cap. $2,720.70 City Portion taxes: $ 1,416.01 City Portion taxes: $1,339.97 Effect on taxes-3.95%market value increase; $ 76.04 Monthly $ 6.34