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06.06.22 Work Session Packet
CITY C►F Meeting Location: FARMINGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA June 6, 2022 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Public Infrastructure Policy Discussion (45 Minutes) (b) New software proposal- Liquor Operations (20 Minutes) (c) 2023 Budget and Financial Plan Discussion (30 Minutes) 4. CITY ADMINISTRATOR UPDATE S. ADJOURN CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Samantha DiMaggio, Community Development Director SUBJECT: Public Infrastructure Policy Discussion (45 Minutes) DATE: June 6, 2022 INTRODUCTION Summergate Development Company would like to have a discussion with the City Council about the City's current development policy which requires developers to build the required public improvements at the time of development. DISCUSSION Summergate is working to acquire the Eastern side of the Donnelly parcel for the proposed Meadowview Preserve Development. As part of this project,the city is requiring that Summergate build 190th Street W.to the creek, this is approximately 1,000 feet of roadway. Summergate is proposing to build 190th Street West up to the entrance of their development,which is approximately 200 feet of roadway. BUDGET IMPACT TBD ACTION REQUESTED The City Council should engage in a discussion with Summergate about the current policy. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Joshua Solinger- Liquor Operations Manager SUBJECT: New software proposal- Liquor Operations (20 Minutes) DATE: June 6, 2022 INTRODUCTION I n February, Peter asked me to investigate cloud-based point of sale systems. His main concern was that if our server ever went out,we would be out of business for a few days while they got it sorted. While researching there are many benefits of a cloud-based system other than just stability! I started my research by reaching out to our municipal liquor partners in the metro. Rite Software kept popping up, and the reviews have been glowing. I reached out the Rite and got a full demo shown to me. I also visited the Northfield municipal liquor store to see the software live.This would be a game changer for us! DISCUSSION The ask: Replace our Point-of-Sale provider ECRS with RITE Software. The benefits: We would have a local rep(no 1-800#'s!) I ntegrated employee time clock—information sent directly to payroll. Our current system has been and still is the honor system. Local municipal partners that use the software, we can reach out for best practices. System available anywhere, anytime to specific users via their smart phone Significantly easier to navigate and customize sales data spreadsheets Built in purchase order generator—H UG E TI M E SAVER, it would save two full days of labor for us Automatically generates end of month reports and emails sent to finance and me. Very user-friendly interface at the point of sale and back office.There are numerous built-in efficiencies with this software that we would utilize daily! H ighly customizable in every way. They also take feedback and requests and que them to add in new features. BUDGET IMPACT The cost: One-time upfront cost$16,464(upfront costs, new pc's, support package, etc.) Monthly fee$290 (current POS $355.51) Noteworthy items: Our contract with our current POS provider runs through October(paid in full), Rite has offered a $750 discount to offset that cost. We would need to switch credit card processors (Tracy approves of this!), our current contract runs through March 2023.There may be$530 in fees to cancel early, but that may be$0 depending on how the contract was negotiated. If we chose RITE's preferred processor, we would save$60/month. It is hard to predict a RO Ion this investment. Considering the potential cost of downtime associated with a server outage,some of our PC's reaching end of life,the labor savings with the built-in efficiencies, and monthly savings of$65.51—it seems like a logical decision and a great use of our CI P funds (if applicable). This change comes with the support of IT and Finance. ACTION REQUESTED Approve the transition to Rite Software. Once approved we can start the process of porting data from our old provider. We would go live in August. ATTACHMENTS: Type Description D Cover Memo Estimate summary D o EUI Client: Farmington Liquors Sales rep: Gary Noble Date: 5-10-2022 Due to global supply chain issues,prices are subject to change upon notice at any time prior to proposal acceptance. Otherwise,proposals automatically expire 60 days from the date above. RITE Proven Process RITE uses our"Proven Process"to deploy systems to new customers. This is a process that has been refined over more than a decade of experience working with retailers like you and we consider it the Mutual Kick off Customer "Full throttle" System review t Cwtamr evaluation completes self hands on approval GO UVE phase meeting guided training deployment training Cummer Tranrg, rnponm eedbea Rw�M This is a time tested process that emphasizes two very simple ideas: ONE:An ounce of prevention is worth a pound of cure. Time spent preparing for go-live is time well spent. If the stakeholders don't take the time, it becomes a debt that always gets paid. If all parties don't do the work upfront the debt will get paid, during go-live- and with a tidy amount of interest. A training issue, as an example, is easy to address early before it becomes a "hair on fire" event on the first day of go-live if people are not prepared. TWO: Getting the proiect done quickly= best results for customer As you learn more about our process you'll notice the emphasis on us moving quickly,and our expectation that the client does the same. There are many benefits, including: • The sooner we deploy,the sooner you reap the benefits of your new system. If the new system will help you sell$X more or save$X per month,the sooner you start the sooner that happens. • Many things we do during the deployment are like an ice cream cake,they melt with time. If we train you today and we wait a month to go-live you know the knowledge will dissipate without use. If we import your data,the longer we wait the more inaccurate the data becomes. The list goes on and on. Understanding our process is critical as we base our proposal pricing on the fact that we can apply these tactics to your project More details can be found in the"RITE Proven Process"document online which was sent as an additional attachment to the email containing this quote—you should review it before accepting the proposal to ensure you're comfortable with the process. If you are serious about your business and making the most out of this investment you'll love this process but, no doubt, it is a commitment on your part. *Although we use the word quickly to describe the pace of the project,deploying the RITE way generally takes 4-6 weeks from the time the proposal is signed and deposit received. Please note that with the growth of the Cloud Retailer product we are quite busy so following these processes is critical to a successful deployment. Page 2 of 16 Initial Summary of proposed software, services, and equipment /''N p Cloud Retailer POS subscription/upfront Costs `l�+�/M/ ' - ! - •Cnm Cloud Retailer standard pricing is $50 per month fee per POS+ $500 per POS upfront license cost. The Cloud Retailer monthly fee includes 2GB of database space per POS. The system does include the ability to archive old data. Included support/premium services There is a basic level of service included in the Cloud Retailer subscription fee—see the Cloud Retailer Wiki site for the terms of this service here: http://wiki.cLoudretaiLer.com/tech-articles/other/support-covered-by-subscription-fee *Subject to change, with notice given. Premium services are used by customers to cover services not included in the base level of service. The majority of our customers buy a block of time and use it as they desire. The block quoted with your system is included below: 5 Hour Support Pack $675 15 Hour Support Pack $1,875 Packages must be purchased before services are rendered to get package rate on work. Installation & training Cloud Retailer includes a full fledged complement of software components in the price of the base software. In order for us to make functional, configure,train, and optimize your use of those components,there is an additional cost. If you intend to utilize a specific module make sure the "Included"column below says YES or it will not be deployed. The price below includes: • Time for our staff to enable a given functionality, including initial configuration that may be needed. • Access to training materials and consulting time. Some training will be self-guided, some one-on-one, and much of this service is conducted through "system review". Which of these methods is utilized depends on the module. We will send (2)TWO individuals through the training process for the price stated. o See details for each module on our wiki site. https://wiki.cLoudretaiLer.com/training o We employ a "train the trainer" approach and us training two users is a sweet spot. One person doesn't allow for enough feedback about the business and is also risky (what if that person moves to another job). Three or more can make our conversations unfocused and have more overhead. Page 3 of 16 Initial • Supportability of your system. While all of these functionalities are generally accessible in the system if you do not have two staff members trained on how to use them—we will not provide support on the functionality. You can schedule additional training at any time post go-Live. Software modules to deploy Level Module/Service Included Cost 100 Basic install&training+POS basics and back office basics YES $450 125 End of day reconciliation YES $75 150 Back office reporting YES $100 175 Shelf tag printing YES $75 200 Age verification YES $50 225 Gift card creation and processing YES $50 250 Employee time clock YES $75 275 Setting up basic promotions YES $50 300 Rentals/kegs*dymo label printer required for tag printing NO $100 Inventory—including purchase orders,inventory transfers, 325 physical inventory counting YES $450 350 Introduction to configuring Taskpads(buttons at POS) YES $150 Creating and managing orders(work orders,layaways,special 375 orders,web orders) NO $200 425 Customer loyalty programs NO $450 450 Basic product importing NO $150 475 Supplier purchase planning YES $350 500 Configuring dynamic attribute sets NO $150 525 Multi-store functionality YES $600 Formula based,advanced promotions.Multi layered, quantity/volume discount schemes,price levels,etc...*requires 575 Basic Promotions 275 training as precursor YES $400 600 Importing of other data types NO $350 Our objective is to train you on how to execute a majority of the functionality you need to ensure you can wield the system to your maximum benefit and keep your support costs low. Taskpad training (the buttons you use at the POS) is a great example. The system comes with a default configuration and we will train you how to adjust as needed. If you want us to perform services Like configure your taskpad for you instead of being trained to do so yourself,we wiLL happily do so utilizing premium service package time. If you need many specialized buttons set up (10+buttons)or you require some specialized button workflow make sure that you discuss it with your sales rep slnd_that they list this in the"Customer Special Requirements"section of this document. Do not accept the proposal unless ALL special requests are listed there. Page 4 of 16 Initial Add-on modules Cloud Retailer includes a number of software Add-On integrations and features that are not included in the price of the base software. In order for us to deploy, configure,train, and support your use of those functionalities,there is an additional upfront and ongoing cost. If you are going to utitize a specific module make sure the 'Included"column says YES for each module you intend on deploying. Comments Induded Includes Android based inventory scanning device,installation,training. Requires wifi infrastructure with solid coverage throughout Cloud Retailer Mobile $1,695 $19 Per device building. 0 Other file formats supported but there are Supplier Integration additional costs.A Fintech account is required (Fintech) $400 $80 Per store and does have additional fees. NO We can integrate to Quickbooks on premise, online,or create a comma separated flat file. Our standard integration assumes that the data will be imported into the accounting system via GL buckets for each department and tender type.Custom mappings are an option however they come with an additional cost.See our wiki Accounting intearation $450 $20 Per store site for additional details. NO Assumes the report that would execute the Base email alert alert already exists.Does not include time to configuration $50 $0 Per alert design custom reports that may be needed. NO Credit card processing fees:2.69%+25 cents per transaction E-commerce card processing is more expensive than in-store rates as they are higher risk Uncorked Commerce $850 $180 Per Store transactions (no physical card is present). NO AC Nielsen export $400 $10 Per store YES Drizly integration $110 $10 Per store NO City Hive integration $275 $20 Per store NO If you want us to support a non-standard EDI integration that we have existing adapter for the Additional/Single EDI setup cost is typically$400.To build new import formats $TBD $15 Per format adapters is typically$1500 to$2500. NO Onsite Tech (hardware install day) $1,150 $0 Per Day See details on proposal. 0 Total one way mileage to each location where Mileage $2 $0 Per mile onsite install/training will occur. 0 Page 5 of 16 Initial More detailed information about the software and add-on modules for Cloud Retailer can be found on our Wiki Page at: http://wiki cloudretailercom/rite-proven-process-rpp//cloud-retailer-module-list *Integrations do not include the work to get that 3rd party site operational- it is merely an integration. Customers should bring their partner into this process to connect with a RITE technical team member. (0) CloudRetailer RITE Handheld ($1,695 per+ $19 per month) This includes a one-time license cost for the CloudRetailer Mobile Manager software, which is a tool to create and receive purchase orders, create and receive inventory transfers, perform physical inventory counts, print labels,and manage item properties. It also includes a RITE handheld running Android OS, .o. with 1D scanner, charging dock, and charging cable.*$19 per month software o00 maintenance charge is required. Cloud Retailer credit card processing module Cloud Retailer includes the ability to process credit cards using some of the most secure technology available and can be utilized through multiple payment processors. There is an ongoing hard cost for RITE in supporting these solutions, maintaining and verifying the security required for these solutions and therefore there is a charge to utilizing this technology. Please choose one of the following options: We cannot integrate with World Pay ❑ I am not processing credit cards or will be using a non-integrated payment terminal ($0) ✓ NAB signed through RITE (NAB preferred—therefore $15 per month waived). Account must be signed via RITE. ❑ I am bringing my existing payment processing account with First Data, Heartland,TSYS (NON-RITE) account- S15 per month per POS If you are processing credit cards through someone else and interested in processing with NAB via RITE (they can usually beat most rates). Assuming you would switch (provided they meet or beat your current terms), and they cannot meet or beat your current pricing (2 months statements required), RITE will credit your Card Defender$15 per month maintenance fees for one year under current processor,AND give you a free month of Cloud Retailer subscription services. If you're in a contract with another provider very often these contracts are"bought out" by NAB to allow you to open an account with them. See contract terms and conditions for details. Typically,the payment processor sources the payment terminals (Certain PAX devices supported) however if you require RITE to provide the terminals let us know. We REQUIRE that the retailer use a Tailwind mounting stand as it enhances the longevity of the device. Page 6 of 16 Initial If using your existing payment provider please provide Processor contact information here: Company name:_NAB__ Rep name: _Stacy Carillo--- ---- Rep email: __— Rep phone: Customer wants to use contactless payments (pay w/mobile): YES Customer requires PIN based debit: YES Existing hardware evaluation / deployment If RITE will not be providing hardware to the customer, all existing hardware must meet our minimum standards and be well prepared for use with the new system. See our website for details and a list of compatible barcode scanners, receipt printers, and other peripherals: https://heLpdesk.cLoudretaiLer.com/support/solutions/articles/67000669628 • Bluetooth scanners are by nature less stable than wired ones and though a brand or model may be compatible,things like RFID and other signal interferences can cause connectivity issues. We prefer to deploy wired barcode scanners. • Cloud Retailer ONLY supports ZPL(Zebra programming language) label printers • Changes in State Driver's License technology requires upgrading to 2D barcode scanners in order to interact with new DUs(age verification and/or setting customer to transaction). • CloudRetailer does NOT support old school green character customer facing pole displays. • A specific handheld bundle has been engineered to work with CloudRetailer. Other handhelds MAY be able to be utilized as a "dumb" device for counting inventory. Under no circumstances do we support off brand POS hardware. Typically we're able to make most mainstream products work,though they may not be able to utilize the entire Cloud Retailer feature set. We will ONLY attempt this on major hardware manufacturer brands. These brands are specified on the hardware page mentioned above. RITE makes no guarantee that it can make a specific device work, at which point we will apply a credit for the amount paid to make the hardware work against the purchase of new equipment from RITE. If you believe you've received an exemption to these standards, it must be stated in writing here (space below). Looking to retain Epson receipt printers and connected cash drawers, Zebra 5050 label printer, and Honeywell 2D barcode scanners. Will have to replace Computers and Monitors as they have all in ones that don't meet specs. WorldPay verifone devices will have to be replaced and sourced by new processor or RITE. Page 7 of 16 Initial POS Hardware included in proposal Hardware components that will be purchased through RITE at this time listed below. **We may need to provide and have your permission to provide "reasonable substitutions" due to COVID shortages AND this also may delay system deployment as chip shortages have delayed all hardware. Inflation has also increased prices on Computer hardware component. (4) POS Station CPU ($1,049 per register) Retail-Ready Business Class mini NUC (Intel processor with a Passmark speed score of at least 3200, 4GB of RAM, 128GB solid state hard drive, and Windows 10 Professional. Includes RITE's Pure POS retail image for Windows. Includes 3-year warranty (4) Logic Controls 15"Touch Screen Monitor ($675 per) (4) EMV Terminal Mounting Bracket($68 per terminal) A mounting bracket that allows you to bolt the unit to your countertop and have it nicely presented to customers. It also enhances the longevity of the payment terminal. (4) PAX EMV payment terminals sourced by RITE ($450 per) AriesB tablet mtaaetl on POS stand (4) NAB debit encryption for Aries8 ($25 per) Additional Hardware Options (not currently included or calculated in Total below) *Circle,and Initial next to,anything you as the customer would like to add on to your quoted project. Datalogic QD2430 2D Barcode Scanner ($289 per) Epson TM2011 Thermal Receipt Printer ($255 per) APG Vasario Cash Drawer (19 X 15 inches) ($250 per) Logic Controls LV4000— (8.4" LCD Net Display) $349 per (1) Zebra ZD220 Direct Thermal Label Printer ($450) The ZD410 has a 2" printing width and can print 3.5 inches per second. A great compact label printer for shelf tags or item labels. This is a thermal barcode label/shelf tag label printer and includes a roll of 2.25 x 1.25 sticky labels. Page 8 of 16 Initial User acceptance testing hardware As per the RITE Proven Process, we have your team do "user acceptance testing". In order to do this properly we need your team to have hardware that can be configured with Cloud Retailer to get the full effect of your new system. Optimally - you'd have a full blown POS that is reconfigured for Cloud Retailer- at the very minimum we need you to have a spare 2D barcode scanner. Please choose from one of the following options. ❑ I am buying a new POS station and can set this up out of the way somewhere for cashiers to train/test on. ✓ I have a barcode scanner that is compatible with Cloud Retailer. I am ok with having two scanners plugged into one of my POS stations temporarily. One that can be used with my existing POS software and the other will be used with Cloud Retailer (as the configurations are incompatible). Data conversion This proposal includes (choose one): ❑ I am starting from scratch—but using a template product DB provided by RITE. Please see terms of use/data ownership agreement for more details: htt ss�pdeskcLoudretaiLercom/support/solutions/articles/67000669643 ✓ Conversion of non-RMS database:Allowing our import tech to take a full backup of your database in order to import customers,products,prices,and suppliers.This option does NOT include importing historical data. PLEASE ADD ANY IMPORTANT DETAILS ABOUT YOUR IMPORT HERE Catapult multi-store Here is a link to a very important article with considerations about data conversions— please review carefully. https://helpdesk.rite.us/support/solutions/articles/67000669604-best-practices-for-using-the-t emplate-database As stated in the article, garbage in, garbage out. We strongly recommend prior to providing your database that the data is clean and has been translated where needed. Our quoted price does not include any truncating, massaging, manipulation, cleansing, deduplication,transformation, or translation of data unless explicitly stated in the comments a bove. We DO offer these services at an additional cost to our standard data import costs, as it is often a time-consuming process but can definitely be worth the time for some users. If these are needed,the tech and sales person will work with you on the options and the costs. Page 9 of 16 Initial Standard and custom reporting This proposal assumes that the Cloud Retailer factory reports, receipt templates, and labels will work in a satisfactory way for the end user. In order to view a gallery of our most common templates go to this address: https://heLpdesk.cLoudretaiLer.com/a/solutions/articles/67000669575?portalld=67000084453 If you have critical reports and you are not 100% positive the equivalent data is included in a Cloud Retailer report, provide them to us and make sure they are listed below in the "Customer Special Requirements" section. We very likely have them or something similar or can create a report for you (as a premium service). rA 'iS, CUS':OM Scripts, da-La expw— S 1 i;7ipor-�: Integration processes are a functionality of the system to import, export, or update data in an automated fashion. API's are functionalities that allow for 3rd party apps to integrate with Cloud Retailer. None of these are provided unless specified. If you do not see something that meets your requirements or have questions please ask prior to approving this proposal. If a requirement is not listed in this proposal then it is not included. Any special requests need to be notated in the "Customer Special Requirements" section of this document. If you're unsure, please ask—we're happy to add notes in the special requirements section to make sure everyone is clear on the requirements of the project. *Note to current users of POS systems Be ready to do some new learning and breaking of old habits while adopting a few better ones. "A curve in the road is only a problem.... if you don't make the turn" Customer special requirements / notes *Customer may add any notations here that were previously discussed with their Sales Rep that should be highlighted. This is a solely a project notes section and not a place to add or request new features. AC Nielsen. 15% off wines for Wine Members (via a Custom Persistent Discount in CR). Have the following handhelds (purchased this year) and will load Lite version of CR mobile on them. The customer has no other special requirements. All CR factory standard reporting, receipts, and labels are sufficient. We can create CloudRetailer compatible label(s) if provided a sample of what you require via support package time. These samples should be provided before the proposal is signed. Page 10 of 16 Initial Investment summary QTY Cost Total Cost 4 Cloud Retailer core - upfront $500 $2,000 I1 Cloud Retailer multistore core- upfront $200 $2001 I1 MMBA testimonial and referral discount -$750 -$750) IDatabase import (2 store spreadsheets) $1,1981 IPOS Software Configuration &System Training $2,875 I1 15 Hour Support Package $1,875 $1,8751 IAdd-on modules - set-up (AC Nielsen) $400' IPOS Hardware total (4 cpu,4 Touch,Aries8) $8,7961 IPOS hardware configuration (upfront) $6751 I Subtotal: $17,2691 Sales tax: 7.13% $1,2301 One time cost total: $18,4991 I4 Cloud Retailer POS- monthly subscription $50 $2001 I4 Payment processing module $15 $601 I4 Payment processing module discount(NAB) -$15 -$601 I1 Cloud Retailer multi-store- monthly subscription $20 $201 I1 Add-on modules - subscription (AC Nielsen) $10 $101 IRecurring monthly charges: $2301 I Sales tax: 7.13% $161 I Proposal total: $18,7461 IDown payment required: $11,247 I *If tappaxes qa e be at mistakenny eioyin uted, RITE reserves the right to invoice the customer for the "/t's unwise to pay too much, but it's worse to pay too little. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do" Page 11 of 16 Initial Purchase agreement Prices are intended to be honored on this quotation for sixty(60)days from the date of proposal. 60%down payment to execute proposal. Balance is due at the time your go-live date is scheduled. All rendered services at time of refund request are non-refundable as work already undertaken. There is a 25% restocking fee on all standard hardware-any special order hardware is non-refundable. Any pricing information included herein is for quotation purposes only and is not an order or offer to sell. All prices and descriptions are subject to change without notice. All products are subject to availability from the manufacturer. This price may not include any applicable taxes,tariffs,or shipping costs. We strive to properly calculate these items but if we do not we reserve the right to collect these at any point in time if it was not calculated properly initially. All billing and support notices will be performed via email to the address listed below. billing@rite.us support@rite.us Please make sure these are in your"safe email"list. IMPORTANT DETAILS ❑ Important:Cloud Retailer subscriptions start 45 days after the kick off meeting occurs,regardless of go-live date. Please make sure any special notes about your timeline are listed above. If the deployment is completed in less than 45 days you will receive the subscription days prior to that for free. If you go-live later than 45 days,the subscription charges will have automatically started on the 45 day mark. ❑ RITE desires the client to provide"always on"remote access to POS stations,at a minimum during the deployment stage but preferably long term. Stores will be sent"invite codes"and will be required to run a process to invite us to each POS station. The client authorizes this activity. ❑ The proposal includes OFFSITE installation and remote training. This means you will be responsible for the physical plugging in of equipment and mounting of the units. Once they are connected to electricity and the network and securely mounted we will work with you to finalize the installation. Configuring the equipment one time is included in the scope of this project. If equipment has to be configured multiple times that would be out of scope. ❑ The customer is aware that the Cloud Retailer subscription includes base services only with the option to purchase premium support services,which bear an additional cost. See Cloud Retailer supportterms and conditions for more details on definition for base services versus premium services: http://wiki.cLoudretaiLer.com/tech-articles/other/support-covered-by-subscription-fee ❑ The premium support packages offered by RITE(blocks of time) provide the customer with a discounted price that is lower than the standard hourly rate. If the customer opts not to choose one at this time they acknowledge that any premium service executed by RITE will be done at their current hourly rate billed in 15-minute increments and subject to their standard support agreement. ❑ All products and services that are to be delivered as per this quote need to be explicitly included in writing in this quote. We want to make sure you know exactly what you're getting and that we understand your expectations to ensure the highest level of customer satisfaction. If something is not expLicitLy listed on the }proposal.it's not included. Please make sure any and all special requests or special circumstances are well documented on this contract. ❑ By signing this document you are agreeing to Cloud Retailers Data Ownership, Privacy Policy,and Terms of Service. Details can be found here: https:#heLpdesk.cLoudretaiLer.com/a/soLutions/artictes/67000669701?portatld=67000083022 If any of these options are not acceptable or desirable PLEASE discuss alternatives with us arior to executing this proposal. Page 12 of 16 Initial MONTHLY SUBSCRIPTION CANCELLATION POLICY We fully expect the Cloud Retailer product to earn your continued patronage each and every month. If we are not living up to your expectations you are free to cancel your service at any time with the following considerations: • If more than the current month's fees have already been paid (i.e.a yearly subscription paid in full),a prorated refund will be issued after the thirty(30) day data retention period,less any discounts that were previously applied. • All licensed POS Devices that have been active for at least one(1)day during the current month will be billed for the entire month. For example,if you wanted to activate service so that you could have additional registers for Christmas,a minimum of one month would be billed. • Written notice of termination is sent to billing@rite.us at least ten (10) business days prior to the end of the current month. Notices sent after this period will end during the next month. • All outstanding or past due balances with RITE have been paid in full(or appropriate arrangements made with the billing department). • Access to the POS terminals and back office will cease at the end of the current month's service. All data required should be exported prior to sending the cancellation notice as data will be removed at this time and will no longer be recoverable. • Cloud Retailer"core'fees represent the cost associated with the service of initially setting up and turning on your Cloud Retailer software.It does not include costs for installation of the point of sale software. It is non-refundable. UPTIME GUARANTEE. Cloud Retailer has a guaranteed uptime of 99%on all hosted services. • The back office application viewed through a browser is considered the"hosted"service. The point of sale/cash register application is reliant on the user's hardware and is not wholly reliant on the hosted back office services. Therefore,the uptime of this functionality is based on the end users responsibility to maintain their equipment and is therefore excluded from this guarantee. • RITE Enterprises Inc.is responsible for the uptime of its"cloud" (servers,network,etc). If a user loses access to hosted services due to a network,the internet,or computer issues on their end it would not be counted as downtime. • Measurement of the uptime excludes time between 1 AM and 3 AM Eastern Standard Time(nightly)as this is a maintenance window for the application. • If Cloud Retailer does not meet this uptime guarantee then the user can submit notice of times they suspect as qualifying as downtime at which point they will be compared to internal records. If valid the user would be credited for that downtime that is in excess of the 1%downtime allowed. This credit will be prorated to their bill based on the percentage of downtime that occurred. This credit cannot exceed the monthly subscription cost of the software for any given month. • Downtime is defined as a problem with the software that inhibits the user from being able to perform more than 80%of the normal functions in any reasonable capacity. The user must report these issues within 15 minutes of the occurrence taking place for them to be logged as downtime. DEFECT. For purposes of support,this agreement defines a defect as a problem with the software or systems not operating in accordance with how the software was originally designed (which may or may not be in agreement with what any given user would prefer). LICENSE. RITE Enterprises Inc.shall retain the ownership of the provided copy of Cloud Retailer software and the documentation provided therewith (referred to as a single entity,or as components,as"the Licensed Software") which is licensed on a non-exclusive basis for use under the following conditions. Page 13 of 16 Initial PERMITTED USES. Subject to the terms hereunder,RITE hereby grants to Licensee a limited,non-exclusive, non-transferable,revocable license,without the right to sub-license,to install and operate the Licensed Software and to operate an account on the RITE website and related applications solely for the benefit of Licensee and not for any third party,until the termination of this Agreement.Any rights not expressly granted hereunder are reserved. There are no implied rights of any kind.To the extent that the Licensed Software includes intellectual property rights of any third party("Third Party Rights"),the license granted is to the extent that RITE is able to license such Third Party Rights. PROHIBITED USES. Licensee shall not(a) make copies of or further distribute the Licensed Software,including copying onto any other medium,(b)distribute,rent,sublicense,lease,resell,or assign the Licensed Software, (c) alter,modify or adapt the Licensed Software or the RITE Services,including but not limited to,translating, decompiling,disassembling,reverse engineering,or creating derivative works, (d)export the Licensed Software without the appropriate foreign government licenses and without RITE prior written approval,(e) resell,rent or otherwise provide access to the RITE services to a third party or(f)take any action in an attempt to obtain any other RITE user's data,cause malfunction,crash,tamper with or otherwise impair the RITE website and related applications,and their services.Any rights not expressly granted hereunder are reserved by RITE. No rights in the Licensed Software or RITE Services are granted,whether expressly or by implication,including, without limitation,any rights in any patents,copyrights,trademarks or trade secrets embodied therein,except in connection with the permitted uses expressly described herein. ARBITRATION. The validity of any controversy or claim arising out of or in connection with this Agreement shall be subject to Arbitration by a single arbitrator under the auspices of the American Arbitration Association ("AAA") pursuant to its Commercial Arbitration Rules. Notice of the hearing is to be given to the parties in writing by registered mail,return receipt requested,addressed to said parties at the addresses herein set forth. All arbitration proceedings shall be conducted in accordance with the rules of the AAA at the branch of the AAA closest to the Vendor's principal place of TAXES. 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Please fill out form and fax to: 320-230-1796 or email to billing@rite.us Page 16 of 16 Initial CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Aril O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Chris Regis, Finance Director SUBJECT: 2023 Budget and Financial Plan Discussion (30 Minutes) DATE: June 6, 2022 INTRODUCTION The 2023 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 2023/2024 budget. Before the presentation of the information at the next work session,staff would like the city council to discuss the budget to provide any high level guidance on the budget and tax levy for 2023. 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 page 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 improvements,fire equipment, police equipment,trail maintenance, and building maintenance along with the plan for current and future debt. The transfers listed on page 18 provide 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 N/A ACTION REQUESTED Provide city staff with direction or priorities on the 2023 budget and tax levy and ask any questions you may have of the Financial Plan. ATTACHMENTS: Type Description D Backup Material Financial Plan CITY OF FARMINGTON Five Year Financial Plan June 2022 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 fund balance goal for the General Fund, obtaining two bond-rating upgrades,the downward trend of the city tax rate, and the implementation of long and short-range capital improvement plans in a number of areas. The 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 terms. ✓ 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. This document includes a summary of the next five years (2023-2027)which is followed by individual financial plans in a number of areas. City staff does have a ten year plan as well (2028-2032) 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. 2 CITY OF FARMINGTON Summary Page with Items of Note Items of Note 1. One of the major hurdles in our financial planning is the establishment of a consistent and dedicated funding source for General Fund vehicles.The 2023 budget is the second year that a concentrated effort is made to get this line item into the financial plan.The 2022 dollar amount was reduced to $375,000.The 2023 dollar amount at this point is$550,000. 2. The Transfers Project Tax Levy sees an increase of$295,000 in 2023 over 2022 amounts. Increases are in fire capital assets,street maintenance,trail maintenance and building maintenance. In addition, money is included to start to collect dollars for the replacement of Engine 1. Local Government Aid (LGA) dollars are included in this item.The assumption is being made that our LGA dollars are going to be the same as in 2022. 3. This item reflects both existing and potential debt. It includes debt funding for street projects for the years 2023, 2024, and 2025. It also includes debt funding for the potential locker rooms at Schmidt-Maki Arena and for the police building expansion. 4. As the council is aware the city's Solid Waste Operations ended as of 12/31/2021.The operation had contributed to the General Fund for human resource costs and administration costs. These contributions will no longer be made beginning in 2023. 5. This item is added as a placeholder to create city council discussion on a dedicated tax levy item to increase the funding for park improvement projects. The Parks Improvement CIP includes a negative fund balance beginning in 2028. Other Plan Assumptions This plan includes a number of other assumptions at this point. A reminder,that these are assumptions and would not be confirmed until a council vote on future budgets. ✓ The plan includes two new positions in 2023 and 2024, and one new position in 2025 and 2026. ✓ A 2% increase in "other revenues" is used to account for increased income from permits, etc. ✓ The amount used for Fiscal Disparities is increased by 1% per year. ✓ Increased human resources costs in terms of wages, cost of living adjustments and benefit cost increases are assumed in the plan. 2023 Items Summary There are a number of large items affecting the 2023 budget. For simplicity,these items are summarized below. 1. First year collection for Engine 1 replacement-$220,000 2. Increase in Annual Pavement Management Funding-$25,000 3. Increase for Vehicle CIP Cash-$175,000 4 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN SUMMARY 2022 2023 2024 2025 2026 2027 ANNUAL HUMAN RESOURCES COSTS $10,611,479 $11,219,640 $11,556,229 $11,902,916 $12,260,004 $12,627,804 BASE NON-HR COSTS $3,475,631 $4,176,930 $4,302,238 $4,431,305 $4,564,244 $4,701,172 NEW HR COSTS $0 $175,000 $175,000 $100,000 $100,000 $0 EXISTING DEBT&FUTURE DEBT-3 $2,265,788 $2,344,235 $2,483,118 $2,684,875 $3,152,239 $3,042,190 FUTURE STREET CIP DEBT $175,000 $0 $0 $0 $0 $0 FUTURE STREET CIP CASH $0 $0 $0 $0 $0 $0 FUTURE VEHICLE CIP CASH-1 $375,000 $550,000 $425,000 $450,000 $500,000 $500,000 TRANSFER PROJECT-TAX LEVY-2 $987,022 $1,282,022 $1,317,747 $1,399,725 $1,629,725 $1,834,000 TRANSFER PROJECT-LGA $105,587 $105,587 $105,587 $105,587 $105,587 $105,587 PROJECTS-TAX LEVY $0 $0 $0 $0 $0 $0 PARK IMPROVEMENT FUND CIP-5 $0 $0 $100,000 $100,000 $150,000 $150,000 TOTAL OPERATING/DEBT EXPENDITURES $17,995,507 $19,853,414 $20,464,919 $21,174,409 $22,461,799 $22,960,752 OTHER REVENUES(2%INCREASE ANNUALLY) $3,611,583 $3,713,630 $3,787,903 $3,863,661 $3,940,934 $4,019,753 FISCAL DISPARITIES $2,351,400 $2,374,914 $2,398,663 $2,422,650 $2,446,876 $2,471,345 TOTAL REVENUES $5,962,983 $6,088,544 $6,186,566 $6,286,310 $6,387,810 $6,491,098 SUMMARY BASE BUDGET LEVY $14,087,110 $15,571,570 $16,033,467 $16,434,221 $16,924,248 $17,328,975 CIP/TRANSFER/LGA LEVY $1,092,609 $1,387,609 $1,523,334 $1,605,312 $1,885,312 $2,089,587 EXISTING DEBT LEVY $2,265,788 $2,344,235 $2,483,118 $2,684,875 $3,152,239 $3,042,190 FUTURE DEBT LEVY $175,000 $0 $0 $0 $0 $0 PAY AS WE GO LEVY $375,000 $550,000 $425,000 $450,000 $500,000 $500,000 TOTAL EXPENDITURES $17,995,507 $19,853,414 $20,464,919 $21,174,409 $22,461,799 $22,960,752 OTHERREVENUES-4 $3,611,583 $3,713,630 $3,787,903 $3,863,661 $3,940,934 $4,019,753 FISCAL DISPARITIES $2,351,400 $2,374,914 $2,398,663 $2,422,650 $2,446,876 $2,471,345 TOTAL REVENUES $5,962,983 $6,088,544 $6,186,566 $6,286,310 $6,387,810 $6,491,098 TOTAL TAX LEVY $12,032,524 $13,764,870 $14,278,353 $14,888,098 $16,073,989 $16,469,655 PROJECTED%CHANGE 6.78% 14.40'/ 3.73% 4.27% 7.97% 2.46% PROJECTED$CHANGE $763,970 1 $1,732,346 $513,483 $609,745 $1,185,891 $395,666 ENDING FUND BALANCE $6,903,398 $6,972,432 $7,042,156 $7,112,578 $7,254,829 $7,436,200 FUND BALANCE AS A%OF ANNUAL EXPENSES 45.48% 40.69% 39.94% 39.43% 38.67% 38.59% 5 CITY OF FARMINGTON Existing and Future Debt CIP This CIP tracks the repayment of existing debt and future debt in the General Fund. 6 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN EXISTING AND FUTURE DEBT ROAD AND BRIDGE FUND 2022 2023 2024 2025 2026 2027 2013A(ASH/SPRUCE/HILL DEE) 2016A(ELM/195TH/WALNUT) $624,750 $276,750 $271,750 $181,750 $181,750 $120,000 TOTAL ROAD AND BRIDGE FUND DEBT $624,750 $276,750 $271,750 $181,750 $181,750 $120,000 NON ROAD AND BRIDGE FUND 2022 2023 2024 2025 2026 2027 2010A(POLICE STATION) 2005C(FIRE STATION 2) $166,000 $166,000 $96,000 $49,000 20168(CITY HALL) $640,000 $638,000 $636,000 $647,500 $648,000 $607,000 2015A(195TH ST) $335,500 $293,500 $293,500 $293,500 $293,500 $289,642 2019A(WESTVIEW ACRES) $230,538 $231,525 2020A(LADDER ONE) $269,000 $267,488 $266,438 $270,113 2022A(Spruce St) $0 $287,978 $289,070 $289,713 $290,012 $289,957 2022A(Tax Abatement) $0 I $182,994 $180,348 $182,731 $184,860 $181,474 2023 Projects $191,101 $191,101 $191,101 $191,101 2024 Projects $320,556 $320,556 $320,556 2025 Projects $265,396 $265,396 Public Safety Expansion $518,153 $518,153 Ice Arena Locker Rooms $258,911 $258,911 $258,911 $258,911 TOTAL NON ROAD AND BRIDGE DEBT $1,641,038 $2,067,485 $2,211,368 $2,503,125 $2,970,489 $2,922,190 TOTAL EXISTING DEBT $2,265,788 $2,344,235 $2,483,118 $2,684,875 $3,152,239 $3,042,190 7 CITY OF FARMINGTON Street Projects CIP This CIP tracks upcoming street construction and reconstruction projects over the next five years. 8 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN STREET PROJECTS CIP STREETS CAPITAL IMPROVEMENT PLAN PROJECT 2022 2023 2024 2025 2026 2027 HWY 3 TRAIL THROUGH LPP $320,000 CR 66/HWY 3 ROUNDABOUT $95,000 HWY 3 TRAIL THROUGH LPP EAST SIDE $198,400 TURN LANES AT 225TH STREET 9TH STREET BACKAGE ROAD $1,161,600 SPRUCE STREET(RR TRACKS TO DENMARK) $4,219,200 WILLOW/UNDON STREETS $1,144,638 PINE STREET $850,570 AKIN ROAD $2,200,000 BACKAGE ROAD,CARVER LANE $896,844 FIRST/OAK STREETS $3,995,670 SIXTH STREET $2,027,630 TOTAL STREET CIP EXPENDITURES $4,832,600 $5,356,808 $4,892,514 $2,027,630 $0 $0 STREET CIP FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $0 $0 $0 $0 $1,000,000 TOTAL ANNUAL EXPENDITURES $4,832,600 $5,356,808 $4,892,514 $2,027,630 $0 $0 TOTAL ANNUALTAX LEVY(CASH) $0 $0 $0 $0 $0 $0 BONDED DEBT REVENUE $2,449,500 $3,676,808 $1,429,911 $986,414 $0 $0 WATER FUND CONTRIBUTION $915,800 $875,000 $1,053,685 $401,873 $0 $0 STORM WATER FUND CONTRIBUTION $611,000 $580,000 $533,313 $292,271 $0 $0 SANITARY SEWER FUND CONTRIBUTION $242,900 $225,000 $760,605 $347,072 $0 $0 TRANSFERS FROM R/B FUND $0 $0 $0 $0 $1,000,000 $432,193 MSA CONTRIBUTIONS $0 $0 $1,115,000 $0 $0 $0 OTHER SOURCES $613,400 $0 $0 $0 $0 $0 YEAR ENDING BALANCE $0 $0 $0 $0 $1,000,000 $1,432,193 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. 9 CITY 4F FARMINGTON StreetMaintenance CIP This CIP tracks the planned street maintenance work including sealcoating, crack sealing and mill and overlay projects. 10 STREET MAINTENANCE FUND 5/10 YEAR FINANCIAL PLAN STREET MAINTENANCE CIP 2022 2023 2024 2025 2026 2027 STARTING CASH BALANCE $900,129 $785,169 $665,769 $516,804 $388,145 $279,486 TAX LEVY $650,000 $675,000 $675,000 $700,000 $720,000 $750,000 OTHER REVENUE $0 $0 $0 $0 $0 $0 RETRO TRANSFERS $0 $0 $0 $0 $0 $0 MSA $0 $0 $0 $0 $0 $0 TOTAL REVENUES $650,000 $675,000 $675,000 $700,000 $720,000 $750,000 EXPENSES CRACK SEALING $36,960 $38,280 $39,600 $40,920 $40,920 $40,920 SEAL COATING/OTHER $78,000 $81,120 $84,365 $87,739 $87,739 $87,739 MILL AND OVERLAY $650,000 $675,000 $700,000 $700,000 $700,000 $700,000 PARKING LOT PROJECTS $0 $0 $0 $0 $0 $0 TOTAL EXPENSES $764,960 $794,400 $823,965 $828,659 $828,659 $828,659 ENDING BALANCE $785,169 $665,769 $516,804 $388,145 $279,486 $200,827 11 CITY OF FARMINGTON woo Vehelcles CIP This CIP tracks the purchase/replacement plan for vehicles from General Fund departements. 12 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN GENERAL FUND VEHICLE/EQUIP CIP SUMMARY 2022 2023 2024 2025 2026 2027 COMMUNITY DEVELOPMENT $0 $37,000 $0 $0 $0 $0 ENGINEERING $0 $77,950 $0 $0 $0 $0 FIRE-VEHICLES $121,550 $0 $365,800 $66,550 $117,800 $1,100,000 MUNICIPAL SERVICES $49,410 $542,865 $153,400 $254,100 $0 $19,050 NATURAL RESOURCES $39,200 $0 $0 $0 $0 $0 PARKS $296,780 $127,308 $123,900 $31,050 $167,400 $0 POLICE-VEHICLES $213,920 $118,785 $105,138 $173,030 $212,040 $260,985 POLICE-EQUIP $102,059 $28,158 $29,640 $51,640 $29,640 $92,040 FIRE-EQUIP $77,250 $29,750 $75,250 $34,250 $3,000 $3,000 TOTAL $900,169 $961,816 $853,128 $610,620 $529,880 $1,475,075 VEHICLE CIP FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $439,562 $49,393 -$17,423 $30,174 $200,279 $556,124 TOTALANNUAL EXPENDITURES $900,169 $961,816 $853,128 $610,620 $529,880 $1,475,075 TAX LEVY REVENUE-VEHICLES $199,000 $375,000 $250,000 $275,000 $300,000 $300,000 TAX LEVY REVENUE POLICE VEHICLES $176,000 $175,000 $175,000 $175,000 $175,000 $175,000 TAX LEVY POLICE EQUIPMENT $110,000 $55,000 $30,725 $30,725 $30,725 $40,000 TAX LEVY FIRE EQUIPMENT $25,000 $70,000 $90,000 $80,000 $160,000 $170,000 TAX LEVY FIRE VEHICLE $0 $220,000 $220,000 $220,000 $220,000 $250,000 LGA $0 $0 $0 $0 $0 $0 OTHER REVENUE $0 $0 $135,000 $0 $0 $0 YEAR ENDING BALANCE $49,393 -$17,423 $30,174 $200,279 $556,124 $16,049 FUTURE CIP DEBT REPAYMENTS 2022 2023 2024 2025 2026 2027 FUTURE DEBT $0 $0 $0 $0 $0 $0 TOTAL FUTURE CIP DEBT $0 $0 $0 $0 $0 $0 13 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN VEHICLE CIP SUMMARY ENTERPRISE FUNDS 2022 2023 2024 2025 2026 2027 WATER $64,400 $0 $0 $78,650 $0 $0 SANITARY SEWER $0 $241,500 $230,100 $96,800 $0 $0 STORMWATER $0 $227,700 $247,800 $48,400 $0 $1,100,000 FLEET $0 $0 $0 $0 $0 $0 TOTAL $64,400 $469,200 $477,900 $223,850 $0 $1,100,000 VEHICLE CIP FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $64,400 $469,200 $477,900 $223,850 $0 $1,100,000 WATER REVENUES $64,400 $0 $0 $78,650 $0 $0 SANITARY SEWER REVENUES $0 $241,500 $230,100 $96,800 $0 $0 STORMWATER REVENUES $0 $227,700 $247,800 $48,400 $0 $0 YEAR ENDING BALANCE $0 $0 $0 $0 $0 $1,100,000 FUTURE CIP DEBT REPAYMENTS 2022 2023 2024 2025 2026 2027 NONE $0 $0 $0 $0 $0 $0 TOTAL FUTURE CIP DEBT $0 $0 $0 $0 $0 $0 14 FARMINGTON Human Resources CIP This CIP tracks potential added staff positions needed due to work volumes and increased population. 15 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN NEW POSITIONS CIP POTENTIAL NEW POSITIONS 2022 2023 2024 2025 2026 2027 ADMINISTRATION 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 $150,000 $100,000 POLICE PATROL OFFICER $100,000 CSO TOTAL $150,000 $175,000 $175,000 $100,000 $100,000 $0 16 CITY OF FARMINGTON Transfers CIP This CIP tracks specific expenditures that staff or the 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. 17 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN TRANSFERS CIP TAX LEVY PROJECTS 2022 2023 2024 2025 2026 2027 EDA TRANSFER $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 ENGINE ONE REPLACEMENT $0 $220,000 $220,000 $220,000 $220,000 $250,000 ARENA CAPITAL PROJECTS $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 POLICE EQUIPMENT CIP $110,000 $55,000 $30,725 $30,725 $30,725 $40,000 FIRE EQUIPMENT CIP $25,000 $70,000 $90,000 $80,000 $160,000 $170,000 PAVEMENT MANAGEMENT $650,000 $675,000 $675,000 $700,000 $720,000 $750,000 TRAIL MAINTENANCE CIP $85,000 $100,000 $120,000 $170,000 $200,000 $225,000 BUILDING MAINTENANCE CIP $5,000 $30,000 $50,000 $100,000 $200,000 $300,000 TOWNSHIP ROAD MAINTENANCE $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 EMPLOYEE EXPENSE FUND $13,022 $13,022 $13,022 $0 $0 $0 PROPERTY/CASUALTY DEDUCTIBLE $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 COMPENSATED ABSENCES FUND $0 $20,000 $20,000 $0 $0 $0 TOTAL TAX LEVY PROJECTS $987,022 $1,282,022 $1,317,747 $1,399,725 $1,629,725 $1,834,000 LGA PROJECTS 2022 2023 2024 2025 2026 2027 BUILDING MAINTENANCE $45,587 $45,587 $45,587 $45,587 $45,587 $45,587 EDA TRANSFER $0 $0 $0 $0 $0 $0 EMERALD ASH BORER $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 TRAIL MAINTENANCE $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 TOWNSHIP ROAD MAINTENANCE $0 $0 $0 $0 $0 $0 PROPERTY INSURANCE $0 $0 $0 $0 $0 $0 TOTAL LGA PROJECTS $105,587 $105,587 $105,587 $105,587 $105,587 $105,587 TOTAL TRANSFERS PROJECTS $1,092,609 $1,387,609 $1,423,334 $1,505,312 $1,735,312 $1,939,587 18 FARMINGTON Projhacts CIP This CIP tracks projects the city may undertake in the future. These larger scale projects may include building and or facility projects. 19 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN FUTURE GENERAL FUND PROJECTS CIP 2022 2023 2024 2025 2026 2027 ARENA LOCKER ROOMS $0 $0 $2,100,000 $0 $0 $0 SIDEWALKS $0 $0 $0 $0 $0 $0 FUEL STATION $0 $150,000 $0 $0 $0 $0 SALT SHED $0 $250,000 $0 $0 $0 $0 PARKING LOTS $1,544,000 $0 $0 $0 $0 $0 LIQUOR STORE $0 $0 $0 $0 $0 $1,500,000 POLICE DEPARTMENT EXPANSION $0 $0 $0 $4,100,000 $0 $0 TOTAL $1,544,000 $400,000 $2,100,000 $4,100,000 $0 $1,500,000 REVENUE STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $1,544,000 $400,000 $2,100,000 $4,100,000 $0 $1,500,000 LIQUOR STORE FUNDS $0 $0 $0 $0 $0 $1,500,000 TAX LEVY $0 $0 $0 $0 $0 $0 DEBT $1,544,000 $0 $2,100,000 $4,100,000 $0 $0 OTHER SOURCES $0 $400,000 $0 $0 $0 $0 TOTAL REVEN U ES $1,544,000 $400,000 $2,100,000 $4,100,000 $0 $1,500,000 YEAR END BALANCE $0 $0 $0 $0 $0 $0 ASSUMPTIONS DEBT PAID BACK AT 120%OF BOND DEBT TYPICALLY PAID BACK OVER 15 YEARS ANNUAL PAYMENT AT 105% 20 FARMINGTON Park Improvement C This CIP tracks planned park build outs and improvements to the city's park system. 21 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN PARK IMPROVEMENT CIP PROJECT 2022 2023 2024 2025 2026 2027 DAKOTA ESTATES PARK $150,000 DAISY KNOLL PARK $300,000 DEPOT WAY ARTS PARK $200,000 EVERGREEN KNOLL PARK $300,000 FAIR HILLS PARK $6,000 FARMINGTON PRESERVE PARK FLAGSTAFF MEADOW $7,500 $200,000 HILL DEE PARK JIM BELL PARK AND PRESERVE $250,000 MEADOWVIEW PARK $85,000 MIDDLE CREEK PARK NORTH CREEK PARK PINE KNOLL PARK $6,000 PRAIRIE PINES PARK $7,500 PRAIRIE VIEW PARK $7,500 RAMBLING RIVER PARK $150,000 $40,000 $25,000 $50,000 SILVER SPRINGS PARK $100,000 TAMARACK PARK $95,000 WESTVIEW ACRES PARK $125,000 TOTAL $157,500 $352,000 $25,000 $145,000 $850,000 $575,000 FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $739,238 $740,141 $546,701 $771,701 $876,701 $301,701 ANNUAL PROJECT COSTS $157,500 $352,000 $25,000 $145,000 $850,000 $575,000 TAX LEVY $0 $0 $100,000 1 $100,000 $150,000 $150,000 FARM LEASE $8,403 $8,560 $0 $0 $0 $0 PARK DEDICATION/PARK DEV FEES $75,000 $75,000 $75,000 $75,000 $50,000 $50,000 LIQUOR STORE FUNDING $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 YEAR END BALANCE $740,141 $546,701 $771,701 $876,701 $301,701 $1,701 22 FARMINGTON • Plans Iint e Transfers CIP This CIP tracks a number of expenditures included in the Transfes CIP including fire equipment, police equipment, trail maintenance and building maintenance. 23 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN FIRE EQUIPMENT CIP 2022 2023 2024 2025 2026 2027 SCBA $0 ' $0 $0 $0 $0 $0 PORTABLE RADIOS $0 $0 $0 $0 $0 $0 RADIO BATTERIES $8,000 $0 $8,000 $0 $0 $0 MOBILE RADIOS $9,750 $9,750 $9,750 $9,750 $0 $0 EXTRACTION TOOLS $40,000 $0 $0 $0 $0 $0 THERMAL IMAGING CAMERA $5,000 $0 $0 $7,500 $0 $0 RAD 57 CO MONITOR $7,000 $0 $0 $8,000 $0 $0 STATION COMPRESSOR $0 $0 $50,000 $0 $0 $0 HOSE $7,500 $11,000 $7,500 $9,000 $500 $500 GAS MONITORS $0 $9,000 $0 $0 1 $2,500 $2,500 FIRE WATER TENDER REPLACEMENT $0 $0 $0 $0 $0 $0 FIRE TRUCK REPLACEMENT $0 $0 $0 $0 $0 $0 TOTAL $77,250 $29,750 $75,250 $34,250 $3,000 $3,000 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $82,750 $343,000 $577,750 $843,500 $1,220,500 EXPENDITURES $77,250 $29,750 $75,250 $34,250 $3,000 $3,000 TAX LEVY EQUIP $25,000 $70,000 $90,000 $80,000 $160,000 $170,000 TAX LEVY FIRE TRUCK $220,000 $220,000 $220,000 $220,000 $250,000 RETRO TRANSFERS $135,000 $0 $0 $0 $0 $0 ENDING BALALNCE $82,750 $343,000 $577,750 $843,500 $1,220,500 $1,637,500 24 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN POLICE EQUIPMENT CIP f 2022 2023 2024 2025 2026 2027 AEDS $0 $0 $0 $0 $0 $0 RADIOS $73,901 $0 $0 $0 $0 $0 HANDGUNS $0 $0 $0 $0 $0 $21,600 RIFLES $0 $0 $0 $0 $0 $40,800 TASERS $0 $0 $0 $22,000 $0 $0 BODY CAMERAS $13,452 $13,452 $13,452 $13,452 $13,452 $13,452 SQUAD CAMERAS $14,706 $14,706 $16,188 $16,188 $16,188 $16,188 GUN CAMERAS $0 $0 $0 $0 $0 $0 THERMAL IMAGING $0 $0 $0 $0 $0 $0 FINGERPRINT MACHINE $0 $0 $0 $0 $0 $0 SPEED TRAILER $0 $0 $0 $0 $0 $0 Vehicles $0 $0 $0 $0 $0 $0 TOTAL $102,059 $28,158 $29,640 $51,640 $29,640 $92,040 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $183,941 $385,783 $571,143 $725,228 $926,313 ANNUAL EXPENDITURES $102,059 $28,158 $29,640 $51,640 $29,640 $92,040 TAX LEVY-EQUIP $110,000 $55,000 $40,000 $30,725 $30,725 $40,000 TAX LEVY-VEHICLES $176,000 $175,000 $175,000 $175,000 $200,000 $200,000 ENDING BALANCE $183,941 $385,783 $571,143 $725,228 $926,313 $1,074,273 25 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN TRAIL MAINTENANCE CIP REVENUES 2022 2023 2024 2025 2026 2027 TAX LEVY $85,000 $100,000 $120,000 $170,000 $200,000 $225,000 LOCAL GOVERNMENT AID $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 OTHER $0 $0 $0 $0 $0 $0 TOTAL $135,000 $150,000 $170,000 $220,000 $250,000 $275,000 EXPENDITURES 2022 2023 2024 2025 2026 2027 BEGINNING BALALNCE $200,282 $211,242 $186,322 $180,522 $223,842 $246,258 FOG SEALING $16,200 $16,800 $17,400 $18,000 $18,600 $19,251 CRACK SEALING $7,840 $8,120 $8,400 $8,680 $8,984 $9,298 PAVEMENT REPLACEMENT $100,000 $150,000 $150,000 $150,000 $200,000 $250,000 RECONSTRUCTION $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $124,040 $174,920 $175,800 $176,680 $227,584 $278,549 YEAR END BALANCE $211,242 $186,322 $180,522 $223,842 $246,258 $242,709 26 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN BUILDING CIP SCHEDULE SUMMARY BY BUILDING 2022 2023 2024 2025 2026 2027 CITY HALL $250,000 $0 $210,950 $671,000 $0 $0 FIRE STATION#1 $0 $129,000 $99,600 $0 $0 $0 FIRE STATION#2 $0 $0 $110,000 $0 $0 $0 SCHMITZ-MAKI ARENA $0 $400,000 $38,400 $0 $0 $0 FIRST STREET GARAGE $0 $22,400 $0 $0 $0 $0 MAINTENANCE FACILITY $0 $820,000 $46,000 $0 $0 $0 POLICE STATION $0 $0 $300,000 $0 $45,000 $0 RAMBLING RIVER CENTER $0 $182,500 $0 $0 $0 $0 TOTAL EXPENDITURES $250,000 $1,553,900 $804,950 $671,000 $45,000 $0 2022 2023 2024 2025 2026 2027 STARTING BALANCE $189,003 $239,590 -$738,723 -$1,448,086 -$1,973,499 -$1,772,912 EXPENDITURES $250,000 $1,553,900 $804,950 $671,000 $45,000 $0 LGA FUNDING $45,587 $45,587 $45,587 $45,587 $45,587 $45,587 OTHER FUNDING $250,000 $500,000 $0 $0 $0 $0 TAX LEVY FUNDING 1 $5,000 $30,000 1 $50,000 1 $100,000 $200,000 $300,000 ENDING BALANCE $239,590 -$738,723 -$1,448,086 -$1,973,499 -$1,772,912 -$1,427,325 27 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 54.37 50.97 50.62 50 48.98 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 29 Dakota County City Tax Rates 80.00 70.00 60.00 v Y oc 50.00 x H 40.00 30.00 20.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 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 38.18 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 43.05 -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 36.12 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 50.62 -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 58.81 -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 51.93 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 32.85 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 39.74 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 36.95 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 64.41 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 70.68 30 CITY OF FARMINGTON NEW TAX CAPACITY GROWTH PERCENTAGE 2.50% 2.00% 1.93% 1.50% 0 1.47% 1.49% 1.32% 1.30% 1.21% 1.19% 1.22% 1.12% 1.00% 0.97% 0.93% 0.87% 0.87% 0.57% 0.57% 0.50% 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Five Year Rolling Average 31 Tax Rate by Entity N N N N A 00 O 0 N A O O O O O O O O WEST ST.PAUL as SOUTH ST.PAUL +5" HASTINGS °1 INVER GROVE HEIGHTS FARMINGTON y BURNSVILLE N X O �p ni ROSEMOUNT N fD (A APPLE VALLEY MENDOTA HEIGHTS EAGAN LAKEVILLE � O [ t') n v) O = D O X � X X m D D mm