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07.11.22 Work Session Packet
CITY OF Meeting Location: FARMINGTONFarmington City Hall r® ` 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA July 11, 2022 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Discuss Flagstaff and Highway 50 Intersection (b) 2023 Draft Budget Discussion 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY 4F O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 a00000— ® Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Lynn Gorski, City Administrator SUBJECT: Discuss Flagstaff and Highway 50 Intersection DATE: July 11, 2022 INTRODUCTION Dakota County has been discussing future proposed changes to Flagstaff and H WY 50. DISCUSSION Discuss the proposed changes from Dakota County on the Flagstaff and Highway 50 intersection project. Staff will also discuss the potential corridor and intersection studies for Flagstaff. / PROJECT SUMMARY i i �'ro�rv�ion CountyR• . • 1 . • get you there City of Farmington July 11,2 1 Project Overview Project Funding Dakota County is proposing to reconstruct the Estimated Costs intersection of County Road 50 and Flagstaff o Design and Right of Way= $100,000 Avenue in the City of Farmington. The purpose of o Construction =$250,000 the project is to improve safety at the intersection. Work on the project is anticipated to include the construction of an offset right turn lane on and median on the north leg of Flagstaff Avenue to require right turns at the intersection. Upon Project Schedule completion, traffic on the north leg heading south 0 Design—2022(ongoing) or east will need to make a right turn, followed • Public Engagement-April 2022 -Aug 2023 by a U-turn at an adjacent median opening. . Open House-Aug 2022 • Right of Way acquisition—Aug 2022-Aug 2023 Project Benefits . Construction—2023-2024 The improvements at the intersection of County Road 50 and Flagstaff Avenue will improve safety at the intersection by reducing conflict points and allowing drivers on the north leg of Flagstaff to For More Information manage one direction of traffic at a time. Jacob Rezac, Dakota County Project Manager 952-891-7981 jacob.rezac(a�co.dakota.mn.us QU xT r 211 ST i �u r BJP r L�.���: ! 1l `!q!:Ya3. SGS +)i es r t J C.5 A.H 50(LANENLLE BLYD.) ' cr�ryf( C.S.A.H. 50 (LAKEVILLE BLVD.) AND FLAGSTAFF AVE. ;�p�C tiCJ transportation INTERSECTION IMPROVEMENT PROJECT we get you there q Lu Q OA'�r-A PRO �S ! r + + t I aw - I • _ j���,t,,` ! ,its; ;; .. �.-. , 211 ST. W. Hyl t ++ "ri Y - i • ai LL )l l'il _ ,•iii �•��' w'' + Of all IN - -. `. -tib -rr�ti �� �;_ _.,-:�-��•:�,t�Y•y�..;t-� _ t + ,0. 67' 23' C.S.A.H 50 (LAKEVILLE BLVD.) — —.12i — N .•.. ."L�-_ _ -?I- Y" _^rr .�••1 f,+, \`(\ •~ f�N - y tt t t f + -. �„C..,x %,�•i" �� «•j � ,'t,_� „GF 7,�e17'� � ��+3 i s ;.rte � `.f+r � ! l + ;. .� � �� r�iC =� l. 'r���„ �'�a•.,G�"t..:.-'�Y'•o.�,_a !f,!•�ilrl�F � r, ,�?� i` 1 `' ., . + . •1`:,�.r' 1�KY� �s:t'r"�'Y:" Yr s-z'C,.v-?`_'n.�r; f"it.�t.s J3«_d. - it ,1„ •,17tkt• t. LEGEND i6 dill DENOTES SECTION LINE DENOTES PARCEL LINE DRAFT ——— DENOTES EXISTING R/W LINE DENOTES BITUMINOUS PAVEMENT DENOTES CONCRETE PAVEMENT 80 40 0 80 ® DENOTES TURF GRASS HORZ. s/2+/2022 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 YI Farmington M N,gov TO: Mayor, Councilmembers and City Administrator FROM: Chris Regis, Finance Director SUBJECT: 2023 Draft Budget Discussion DATE: July 11, 2022 INTRODUCTION The draft 2023 General Fund summary budget information is included for your first in-depth review. Department heads submitted initial budget requests that have been reviewed over the past month. A number of changes to those requests are reflected in the draft included with this memo.As expected, those requests were much higher than the version you are seeing with this packet. DISCUSSION Before we get into the details of the proposed 2023 budget, it needs to be stated for anyone reviewing this information that this information is a draft of the 2023 budget. City staff clearly understands that the draft tax levy that is included is preliminary and it will change before the city council considers both the preliminary and final tax levies for 2023. We share the current status of the draft budget to be transparent and start discussion items with the city council as we plan for the future of our community. City staff has done an excellentjob of submitting what they believe are the needs of their departments for the upcoming year. The approach to adjusting the budget was to prioritize the city council priorities set earlier this year.These priorities include: • Business growth • Community engagement • Infrastructure support 2023 Draft Budget City staff continues to work to plan for the future with realistic budgets and follow the five/ten year financial plan that you reviewed in J une.An updated copy of the financial plan is attached for your review. The current version of the 2023 budget stands as follows: 2022 Budget 2023 Draft Budget Increase(Decrease) Revenues $ 3,611,583 $ 3,873,740 7.26% Expenditures 15,729,719 16,669,910 5.98% Fiscal Disparities 2,351,400 2,352,168 1.00% General Fund Levy 9,766,736 10,421,256 6.70% Debt Levy 2,265,788 2,352,168 3.81% Net Tax Levy 12,032,524 12,773,424 6.16% Revenues Proposed non-property tax related revenues reflect a 7.26% increase over the 2022 budget. This increase is less than the increase from 2021 to 2022 which was 9.5%.The revenue changes by category are detailed below. License/Permits This category continues the increase seen in the 2022 budget. While most of the line items remain relatively consistent with 2022, staff is projecting that building permit revenue will increase by$172,770 from the 2022 budgeted number.This figure lines up with what we are experiencing in 2022. 1 ntergovernmental This revenue category reflects an approximate$53,000 increase from the 2022 budget.The line item increases can be seen in Police State Aid, Police Post Training Aid and Fire State Aid. This category also assumes that Local Government Aid will remain at the 2022 certified amount of$105,587. Charges for Service This area is budgeted for a minimal increase of$3,490 over 2022 budgeted amounts. There is a slight increase in Fire Charges, however, Recreation Fees reflect a$13,000 decrease from 2022 budgeted levels.The 2023 figure is based on 2021 actuals and year to date 2022 actuals.The total revenue in this category is $605,919. Fines and Forfeitures Staff is forecasting a $5,000 increase in this category for 2023 for a total of$55,000. 1 nvestment I ncome I nvestment income will see an increase of$9,400.The city only accounts for investments that are non- callable in the next budget year.The budgeted amount is the General Fund's portion of the investment income and does not reflect all of the income received.The 2023 budget includes$51,000 in investment income. Miscellaneous Revenue This category is down significantly from 2022.The budgeted amount reflects the reality of what is expected to be received.The total amount of revenue included for 2023 is $48,410. Operating Transfers In A detailed breakdown of the transfers in and out of the 2023 budget is included as a separate exhibit in the packet.The transfers into the General Fund are from the Enterprise Funds to reimburse the General Fund for human resource and administrative costs which benefit the Enterprise Funds.The transfers in to the General Fund also include a$150,000 transfer from the Solid Waste Fund. Expenditures n comparing the current draft of the 2023 budget to the approved 2022 budget, expenditures are proposed to increase$940,191 or 5.98%. Of this amount, approximately$550,776 is attributed to human resource costs, including one new building inspector and two new park maintenance workers hired in 2022, but not included in the 2022 budget, but now being accounted for in the 2023 budget.This amount does not include any new positions for 2023.The remaining increase can be accounted for in increased operating costs. Human Resources Costs All of the budgets include human resources costs based on estimates created by the Finance Department. All of our union contracts have been settled through 2024. We have also included estimated increases for health insurance, other employee benefits and workers compensation premiums. There were requests for several additional positions in 2023. These requests are as follows: Public Safety—Two Patrol Officers Fire—Two Full Time Firefighters Administration—One Communication Specialist Administration—One Grant Writer Community Development—One Community Development Specialist Fleet Operations—One Mechanic Transfers Budget The Transfers Budget continues with amounts established in the 2022 budget in response to the council priorities for 2022 and 2023. Please see the following points that address • Future Vehicle Cl P Cash—The 2023 proposed budget includes $500,000 for our Vehicle Cl P. This amount is split into to two parts, $375,000 for General Capital Equipment and$125,000 for General Capital Equipment-Police. The$500,000 amount is an increase of$125,000 over the amount included in the 2022 budget for this area. Our five year Cl P in this area requires additional funding each year than we are allocating in 2023.There are still significant needs in this area. Our target annual funding in this area is$800,000. • Street Maintenance—The 2023 proposed budget includes $675,000 in this line item.This is an increase of$25,000 over the 2022 budgeted amount.The 2022 amount was targeted for the mill and overlay of Akin Road which is now planned for 2023 and will be a reclamation project rather than a mill and overlay, with an estimated cost of$2,200,000. Our target annual funding amount in this area is $870,000. • Trail Maintenance—This item includes $100,000 in tax levy dollars for trail maintenance in 2023.This is a $15,000 increase over 2022.There is also$50,000 of Local Government Aid dollars identified for trail maintenance in 2023. Our target annual funding amount in this area is$510,000. Due to the current state of the 2023 budget, I removed/adjusted three items from the transfers budget that are worth noting. Originally,there was$220,000 included in the budget to start the funding for the replacement of Engine 1 in 2026. This amount was also included in the 2022 budget and subsequently removed. Staff recommends that the city bond for this purchase as it did for the ladder truck in 2020.The debt service for the ladder truck will be completed in 2025 and bonding for the replacement can occur in 2025,with the first tax levy in 2026.The second item is the reduction of police capital equipment from $175,000 to$125,000. With the starting of the lease program for police vehicles in 2022, it is hoped that annual funding for this item can be redirected to General Capital Equipment if possible.The third item is $20,000 identified towards Compensated Absences payouts. As was the case in 2022,we cannot afford this addition. I should point out that the Transfers Budget accounts for the use of$105,587 in Local Government Aid (LGA)dollars that the city receives from the State of Minnesota. We have these funds earmarked for trail maintenance($50,000), our EAB program ($10,000), and building maintenance($45,587). At this time, the city does not know what the 2023 certified LGA amount will be. Once that amount is known,these amounts may change. Fiscal Disparities This amount will be finalized in August 2022.The 2023 proposed budget includes an amount that reflects an estimated 1% increase over the 2022 actual amount. As a reminder, Fiscal Disparities is a metro-wide program that shares commercial/industrial growth in the metro area between cities. Because Farmington has not developed at the same rate as other metro cities in the commercial/industrial area, we are a net "gainer"of revenue in this area. Debt Service Funds Levy The Debt Service Funds budget provides funding for scheduled debt principal and interest payment 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 net debt levy for 2023 reflects an increase of$86,380 from the 2022 budget.The increase is a combination of the Series 2022A bond issuance and the maturity of the Series 2013A bonds in 2022. Additional Notes There are numerous factors that brought the proposed 2023 tax levy to where it stands today.These include: • Honest and transparent budget of city needs by staff. • Estimated cost of living and wage adjustment for staff. • I ncrease in budgeted amounts for fuel usage. •Three positions added in 2022 that were not previously budgeted. BUDGET IMPACT The establishment of the 2023 budget will set the framework for our financial health and work plan for the next year. ACTION REQUESTED Review the information on the 2023 budget, ask any questions you may have and provide city staff with the direction on how to move forward on the proposed budget. ATTACHMENTS: Type Description ❑ Backup Material General Fund Budget Summary ❑ Backup Material General Fund Budget Revenue 2023 ❑ Backup Material General Fund Budget Expenditures 2023 ❑ Backup Material Debt Levy Breakdown 2023 ❑ Backup Material 2023 Draft Transfers ❑ Backup Material Financial Plan City of Farmington Budget and Tax Levy 2022 Budget,2023 Proposed and 2024 Proposed Company 2022 2023 Budget% 2024 Budget Budget Proposed Chane Proposed Change% Non-Property Tax Revenues Licenses and Permits 736,700 915,470 24.27% 916,270 0.09% Intergovernmental Revenue 672,087 725,207 7.90% 735,307 1.39% Charge for Service 602,460 605,919 0.57% 605,994 0.01% Fines and Forfeitures 50,000 55,000 10.00% 60,000 9.09% Investment Income 41,600 51,000 22.60% 52,000 1.96% Miscellaneous 80,878 48,410 (40.14)% 49,300 1.84% Transfers In 1,427,858 1,472,734 3.14% 1,523,459 3.44% Total Revenues 3,611,583 3,873,740 7.26% 3,942,330 1.77% Expenditures Administration 1,099,249 1,159,523 5.480/. 1,368,218 18.00% Human Resource 402,112 405,235 0.78% 309,914 (23.52)% Dakota Broadband 45,500 37,500 (17.58)% 37,500 0.00% Finance and Risk Mgmt 818,759 844,707 3.17% 955,410 13.11% Police 5,279,810 5,468,888 3.58% 5,586,809 2.16% Fire 1,592,646 1,742,006 9.38% 1,801,340 3.41% Community Development 1,059,182 1,159,476 9.47% 1,206,405 4.05% Engineering 850,411 862,897 1.47% 925,020 7.20% Municipal Services 1,609,704 1,716,574 6.64% 1,768,964 3.05% Parks and Recreation 1,329,737 1,610,495 21.11% 1,780,594 10.56% Transfers Out 1,642,609 1,662,609 1.22% 1,678,334 0.95% Total Expenditures 15,729,719 16,669,910 5.98% 17,418,508 4.49% Revenues Over(Under)Expenditures (12,118,136) (12,796,170) 5.60% (13,476,178) 5.31% Fiscal Disparities 2,351,400 2,374,914 1.00% 2,398,663 1.00% General Fund Levy 9,766,736 10,421,256 6.70% 11,077,515 6.30% Debt Levy Bonds 2,099,788 2,186,168 4.11% 1,946,855 (10.95)% 2005C Loan Repay-Storm Water TrA 166,000 166,000 0.00% 96,000 (42.17)% 2010A Loan Repay-Storm Water Tr Ach 0 2010D Loan Repay-Storm Water Tr Adi 0 Total Debt Levy 2,265,788 2,352,168 3.81% 2,042,855 (13.15)% Use of Fund Balance to Lower Debt Lei 0 Net Debt Levy 1 2,265,7881 2,352,168 3.81% 2,042,855 (13.15)% Farmington Net Tax Levy 1 12,032,5241 12,773,424 6.16% 13,120,370 2.72% General Fund Detailed Non-Property Tax Revenue Summary 2021 Budget,2022 Budget, 2023 Proposed and 2024 Proposed Object 2021 2022 2023 2024 Account Budget Budget Pro ed Proposed LIQUOR LICENSES 40,000 40,000 37,000 37,000 BEER&WINE LICENSES 1,100 800 800 800 CLUB LICENSES 500 500 500 500 MASSAGE LICENSE 300 50 50 50 GAMBLING LICENSE/PERMIT 250 150 300 300 OTHER LICENSE&PERMIT 1,700 1,400 1,800 1,800 ANIMAL LICENSES 2,500 2,000 2,900 2,000 Licenses 46,350 44,900 43,350 42,450 BUILDING PERMITS 380,876 590,000 762,770 762,770 REINSPECTION FEES 1,500 1,200 5,000 5,000 CODE ENFORCEMENT FEES 1,500 900 900 900 PLUMBING&HEATING PERMITS 50,000 60,000 60,000 60,000 ELECTRIC PERMITS 16,000 20,000 23,000 23,000 ISTS PERMITS 300 250 250 250 UTILITY PERMITS 10,500 10,500 11,000 12,000 SIGN PERMITS 800 700 900 700 BURNING PERMITS 1,250 1,250 1,300 1,200 OTHER PERMITS 8,000 7,000 7,000 8,000 Permits 470,726 691,800 872,120 873,820 Licenses and Pemtits 517,076 736,700 915,470 916,270 FEDERAL GRANT 5,000 5,000 3,100 3,200 LOCAL GOVERNMENT AID 105,587 105,587 105,587 105,587 MSA MAINTENANCE 184,000 184,000 185,400 185,400 POLICE AID 198,000 205,000 225,000 230,000 POST TRAINING 15,160 15,000 25,000 25,000 FIRE AID 142,490 150,000 175,000 180,000 STATE GRANT 4,325 0 0 0 COUNTY MISCELLANEOUS 13,350 7,500 6,120 6,120 Intergovemmental_ 667,912 672,0871 725,207 735,307 CUSTOMER SERVICES NONTAXABI 210 135 150 150 ZONING&SUBDIVISION FEES 2,600 3,000 4,000 4,000 ADMINISTRATION FEES-PROJECT 4,000 4,000 7,500 8,000 FIRE CHARGES 239,227 258,940 264,177 272,513 POLICE SERVICE CHARGES 78,810 80,385 81,992 83,631 EROSION&SEDIMENT CONTROL 8,100 9,500 14,000 15,000 RECREATION FEES GENERAL 75,000 75,000 62,000 65,000 RECREATION FEES SENIOR CTR 15,000 17,000 17,500 18,000 MEMBERSHIP FEES-SENIOR CTR 6,000 7,500 7,600 7,700 ADVERTISING 750 500 500 500 ADVERTISING 1,500 1,500 1,500 1,500 FRANCHISE FEE 145,000 145,000 145,000 130,000 Charges For Services ': 576,197 602,460 605,919 605,994 COURT FINES 49,000 50,000 55,000 60,000 Fines&Forfeitures 49,000 50,000 55,000 60,000 INTEREST ON INVESTMENTS 29,100 41,600 51,000 52,000 Investment Income 29,100 41,600 51,000 52,000 RENTAL INCOME-RRC 18,000 18,000 7,710 8,000 RENTAL INCOME 29,670 28,678 29,000 29,500 MISCELLANEOUS REVENUE 31,700 34,200 4,200 4,300 DONATIONS 0 0 2,500 2,500 REFUNDS&REIMBURSEMENTS 0 0 5,000 5,000 Mlsc Revenue 79,370 80,878 48,410 49,300 OPERATING TRANSFERS 1,379,689 1,427,858 1,472,734 1,523,459 Transfers In 1,379,689 1,427,858 1,472,734 1,523,459 Total Revenues $3,298,344 $3,611,5931 $3,873,740 ,942,330 General Fund Expenditure Detail Summary 2021 Budget,2022 Budget 2023 Proposed and 2024 Proposed Company 2021 2022 2023 2024 Budget Budget Proposed Proposed Expenditures Administration Legislative(1005) 87,392 87,259 110,262 113,832 Administration(1010) 321,712 469,641 528,826 550,964 Elections(1013) 9,351 47,948 10,000 93,298 Communications(1014) 114,900 132,916 134,785 220,835 City Hall(1015) 369,560 361,485 375,650 389,289 Administration 902,915 1,099,249 1,159,523 1,368,218 Human Resources 361,658 402,112 405,235 309,914 Human Resource(1011) 361,658 402,112 405,235 309,914 Human Resources 361,658 402,112 405,235 309,914 Dakota Broadband 37,500 45,500 37,500 37,500 Dakota Broadband 37,500 45,500 37,500 37,500 Dakota Broadband '' 37,500 45,500 37,500 37,500 Finance and Risk Management Finance(1021) 603,097 648,309 655,157 760,170 Risk Management(1022) 173,190 170,450 189,550 195,240 Finance and Risk Management 776,287 818,759 844,707 955,410 Police Police Administration(1050) 1,263,014 11356,642 1,382,034 1,462,046 Patrol Services(105 1) 2,639,752 2,929,249 3,032,747 3,060,036 Investigations(1052) 926,430 974,019 1,032,707 1,041,827 Emergency Management(1054) 16,600 19,900 21,400 22,900 Police 4,845,796 5,279,810 5,468,888 5,586,809 Fire Fire(1060) 1,435,685 1,592,646 1,742,006 1,801,340 Fire 1;435,685 1,592,646 1,742,006 1,801,340 Community Development 1,007,849 1,059,182 1,159,476 1,206,405 Planning(1030) 567,681 624,475 585,548 610,334 Building Inspection(1031) 440,168 434,707 573,928 596,071 Community Development 1,007,849 1,059,182 '1,159,476 1,206,405 Engineering Engineering(1070) 694,134 725,816 720,613 777,362 Natural Resources(1076) 119,761 124,595 142,284 147,658 Engineering 813,895 850,411 862,897 925,020 Municipal Services Streets(1072) 1,268,832 1,358,489 1,436,409 1,495,729 Snow Removal(1073) 242,355 251,215 280,165 273,235 Municipal Services 1,511,187 1,609,704 1,716,574 1,768,964 Parks and Recreation Park Maintenance(1090) 733,607 677,974 979,476 1,135,550 Rambling River Center(1093) 185,054 227,731 204,199 204,483 Park&RecAdmin(1094) 304,383 324,745 315,130 328,661 Recreation Programs(1095) 94,297 99,287 111,690 111,900 Parks and Recreation 1,317,341 1,329,737 1,610,495 1,780,594 Transfers Out 822,351.00 1,642,609.00 1,662,609.00 1,678,334.00 Transfers Out 822,351.00 1,642,609.00 1,662,609.00 1,678,334.00 Total Expenditures I 13,93Z4641 15,729,7191 16,669,9101 17,418,508 2023 Proposed Debt Service 2023 2023 Proposed 2023 2023 2023 Proposed 2023 p Object Proposed Proposed Proposed 2005C(3130) Proposed Proposed 2019A GO Account 2016A(3094) 2020A FIRE 2022A GO Storm Water Trunk 2015A(3093) Rd&Br Fund 20166(3136) CAPITAL IMP EQUIPMENT CERT BONDS Loan 2-1-16 BOND 4000-REVENUE AND EXPENDITURE 4001 -REVENUES 4011 -CURRENT PROPER 166,000 293,500 276,750 638,000 231,525 267,488 478,905 Property Taxes 166,000 293,500 276,750 638,000 231,525 267,488 478,905 4110-SPEC ASSESS CURRENT 235,000 4125-SPEC ASSESS PREPAID TO CITY 2,300 Special Assessments 237,300 4955-INTEREST ON INVE 200 1,000 3,900 1,800 500 400 0 Investment Income 200 1,000 3,900 1,800 500 400 0 Total Revenues $166,200 $294,500 $517,950 $639,800 $232,025 $267,888 $478,905 6001 -EXPENDITURES 7110-DEBT PRINCIPAL 225,000 445,000 545,000 200,000 210,000 0 7120-DEBT INTEREST 42,325 4,450 84,775 15,500 40,000 172,288 7130-FISCAL AGENT FEES 2,950 5,918 3,450 2,950 2,950 600 7140-LEGAL&FISCAL FEES 1,200 0 Debt Service 270,275 456,568 633,225 218,450 252,950 172,888 Total Exp 270,275 456,568 633,225 218,450 252,950 172,888 Bond Issue 0 0 Bond Issuance Costs 0 Transfers In 0 7310-OPERATING TRANS 166,000 0 Transfers Out 166,000 0 0 Other Financing Sources (166,000) 0 0 Net Change in Fund Bale, $200 $24',225 $61,3821 $6,575 $13,575 $14,938 $306,017 2023 OPERATING TRANSFERS TRANSFERS IN(5205) Capital General General General Equipment Capital Capital Emp Exp Storm Capital Fund Equip Fund Equip Fund Emp Exp Fund General Water Arena Cap Equip Fund (Police (Police (Fire Township Solid Fund (Comp Prop ins Fund EDA Park Im Fire Ca Trunk P-j Fd Vehicles Vehicles) Equip) Equip) Sealcoat Street Main Trail Main EAB Bldg Main Road Main. Waste Insurance Abs ISF Fund 1000 2000 2300 4300 4400 4503 - 5600 5600.5 5600.5. 5600.6 5701 5711 5721 5751 5731 5741 6301 7000. 7000 7100 Totals 1,057,022 1000 Tax Levy 50,000 20,000 55,000 70,000 675,000 100,000 15,000 30,000 9,000 13,022 20,000 1,057,022 105,587 1000LGA 50,000 1D,000 45,587 1 105,587 1000 Future Street CIP Debt 1000 Future Street CIP Cash 500,000 1000 Future Vehicle CIP Cash 375,000 125,000 500,000 1000 Projects CIP Cash 1000 Projects CIP Debt _ C _ 2000 EDA - r- _ 2500 Arena _ 4`7 3094-2016A _ 3097-2010A _ 3099-2011A 0 166,000 3130-2005C 186,000 166,000 U _ 3138-20168 w - 3137-2016C LLI LL - 3300-2010D Z - 3139-2020A Q 170,126 6100 Admin(GF) 69,126 100 D00 1,000 170,126 95,002 6202 Admin(GF) 9q 002 1 1 1 1 1,000 95,002 260,053 6202 HR 260,D53 250,053 160,000 6302 Admin GF) 150,000 150,000 6302 94,002 5402 Admin(GF) 94,002 94002 337,652 6402 HR 337,652 337,652 K002 6502 Admin(GF) 94,002 y4 002 373,897 6502 HR 373,897 373,897 3,403,343 1,472,734 50 000 100.000 166,000 20,000 375,000 125,000 55,000 70,00 675,000 150,000 25,000 75.587 9.000 13,022 22,000 3 403 343 625,000 934,587 3,403,343 3,403,343 CITY OF FARMINGTON ��io Five Year Financial Plan July 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. 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$500,000. 2. The Transfers Project Tax Levy sees an increase of$70,000 in 2023 over 2022 amounts. Increases are in fire capital assets,street maintenance,trail maintenance and building maintenance. 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. Included in the 2023 Draft Budget is a $150,000 from the Solid Waste Fund to the General Fund. 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 does not include any new positions in 2023. It does include two positions in 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 few large items affecting the 2023 budget. For simplicity,these items are summarized below. 1. Increase in Annual Pavement Management Funding-$25,000 2. Increase for Vehicle CIP Cash-$125,000 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN SUMMARY 2022 2023 2024 2025 2026 2027 ANNUAL HUMAN RESOURCES COSTS $10,611,479 $11,162,255 $11,544,540 $11,890,876 $12,247,602 $12,615,031 BASE NON-HR COSTS $3,475,631 $3,845,046 $3,978,884 $4,098,251 $4,221,198 $4,347,834 NEW HR COSTS $0 $0 $175,000 $130,000 $100,000 $0 EXISTING DEBT&FUTURE DEBT-3 $2,265,788 $2,352,168 $2,945,962 $3,126,589 $3,837,565 $3,729,119 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 $500,000 $525,000 $525,000 $550,000 $575,000 TRANSFER PROJECT-TAX LEVY-2 $987,022 $1,057,022 $1,097,747 $1,179,725 $1,409,725 $1,584,000 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 $19,022,078 $20,472,720 $21,156,028 $22,621,677 $23,106,571 OTHER REVENUES(2%INCREASE ANNUALLY) $3,611,583 $3,873,740 $3,942,330 $4,021,177 $4,101,600 $4,183,632 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 $6,248,654 $6,340,993 $6,443,826 $6,548,476 $6,654,977 SUMMARY BASE BUDGET LEVY $14,087,110 $15,007,301 $15,698,424 $16,119,127 $16,568,801 $16,962,865 CIP/TRANSFER/LGA LEVY $1,092,609 $1,162,609 $1,303,334 $1,385,312 $1,665,312 $1,839,587 EXISTING DEBT LEVY $2,265,788 $2,352,168 $2,945,962 $3,126,589 $3,837,565 $3,729,119 FUTURE DEBT LEVY $175,000 $0 $0 $0 $0 $0 PAY AS WE GO LEVY $375,000 $500,000 $525,000 $525,000 $550,000 $575,000 TOTAL EXPENDITURES $17,995,507 $19,022,078 $20,472,720 $21,156,028 $22,621,677 $23,106,571 OTHERREVENUES-4 $3,611,583 $3,873,740 $3,942,330 $4,021,177 $4,101,600 $4,183,632 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 $6,248,654 $6,340,993 $6,443,826 $6,548,476 $6,654,977 TOTAL TAX LEVY $12,032,524 $12,773,424 $14,131,727 $14,712,201 $16,073,201 $16,451,593 PROJECTED%CHANGE 6.78% 6.16% 10.63% 4.11% 9.25% 2.35% PROJECTED$CHANGE $763,970 $740,900 $1,358,303 $580,475 $1,360,999 $378,393 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% 43.129o' 41.24% 40.5694. 39.90% 39.87% FARMINGTON Existing and Future Debt CIP This CIP tracks the repayment of existing debt and future debt in the General Fund. 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 2005C(FIRE STATION 2) $166,000 $166,000 $96,000 $49,000 2016B(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) $231,525 $231,525 2020A(LADDER ONE) $268,013 $267,488 $266,438 $270,113 2022A(Spruce St) $0 $292,583 $293,633 $288,908 $289,170 $288,908 2022A(Tax Abatement) $0 $186,323 $185,535 $184,485 $183,173 $181,598 TOTAL NON ROAD AND BRIDGE DEBT $1,641,038 $2,075,418 $1,771,106 $1,733,506 $1,413,843 $1,367,147 TOTAL EXISTING DEBT $2,265,788 $2,352,168 $2,042,856 $1,915,256 $1,595,593 $1,487,147 FUTURE DEBT 2023 Projects $298,981 $298,981 $298,981 $298,981 Akin Road $283,569 $271,240 $271,240 $271,240 2024 Projects $320,556 $320,556 $320,556 2025 Projects $265,396 $265,396 Fire Engine Replacement $247,090 $247,090 Public Safety Expansion $518,153 $518,153 Ice Arena Locker Rooms $320,556 $320,556 $320,556 $320,556 TOTAL FUTURE DEBT $0 $0 $903,106 $1,211,334 $2,241,972 $2,241,972 TOTAL EXISTING AND FUTURE DEBT $2,265,788 $2,352,168 $2,945,962 $3,126,589 $3,837,565 $3,729,119 CITY OF FARMINGTON CIP Street This CIP tracks upcoming street construction and reconstruction projects over the next five years. 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/LINDON 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 ANNUAL TAX LEVY(CASH) $0 $0 $0 $0 $0 $0 BONDED DEBT REVENUE $2,449,500 $2,351,808 $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 $1,325,000 $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. CITY 4F FARMINGTON Zm Street Maintenance CIP This CIP tracks the planned street maintenance work including sealcoating, crack sealing and mill and overlay projects. 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 FARMINGTON Vehicles CIP This CIP tracks the purchase/replacement plan for vehicles from General Fund departements. 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 $40,000 $37,950 $0 $0 $0 $0 FIRE-VEHICLES $121,550 $0 $365,800 $0 $1,217,800 $0 MUNICIPAL SERVICES $40,000 $502,865 $346,516 $352,500 $175,000 $300,000 NATURAL RESOURCES $0 $0 $0 $0 $0 $0 PARKS $0 $177,307 $162,000 $127,105 $341,190 $0 POLICE-VEHICLES $213,920 $125,000 $125,000 $125,000 $125,000 $125,000 POLICE-EQUIP $102,059 $28,158 $29,640 $51,640 $29,640 $92,040 FIRE-EQUIP $37,250 $29,750 $75,250 $34,250 $3,000 $3,000 TOTAL $554,779 $938,030 $1,104,206 $690,495 $1,891,630 $520,040 VEHICLE CIP FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $439,562 $394,783 $81,753 -$241,728 -$296,498 -$347,403 TOTAL ANNUAL EXPENDITURES $554,779 $938,030 $1,104,206 $690,495 $1,891,630 $520,040 TAX LEVY REVENUE-VEHICLES $199,000 $375,000 $400,000 $425,000 $450,000 $475,000 TAX LEVY REVENUE POLICE VEHICLES $176,000 $125,000 $125,000 $100,000 $100,000 $100,000 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 $0 $0 $0 $0 $0 EQUIPMENT CERTIFICATES $0 $0 $0 $0 $1,100,000 $0 OTHER REVENUE-Fire Tender $0 $0 $135,000 $0 $0 $0 YEAR ENDING BALANCE $394,783 $81,753 -$241,728 -$296,498 -$347,403 -$82,443 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 CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN VEHICLE CIP SUMMARY ENTERPRISE FUNDS 2022 2023 2024 2025 2026 2027 WATER-Exmark Mower $0 $22,000 $0 $0 $0 $0 WATER-Pick Up Truck $0 $40,000 $0 $0 $0 $0 SANITARY SEWER-Vac Truck $0 $535,000 $0 $0 $0 $0 STORMWATER-Elgin Sweeper $0 $225,000 $0 $0 $0 $0 FLEET $0 $0 $0 $0 $0 $0 TOTAL $0 $822,000 $0 $0 $0 $0 VEHICLE CIP FUNDING/FUND BALANCE 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $0 $0 $0 $0 $0 TOTAL ANNUAL EXPENDITURES $0 $822,000 $0 $0 $0 $0 WATER REVENUES $0 $62,000 $0 $0 $0 $0 SANITARY SEWER REVENUES $0 $535,000 $0 $0 1 $0 $0 STORMWATER REVENUES $0 $225,000 $0 $0 $0 $0 YEAR ENDING BALANCE $0 $0 $0 $0 $0 $0 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 CITY 4F FARMINGTON 0000010, :jW --Now ..00 Human Resources CIP This CIP tracks potential added staff positions needed due to work volumes and increased population. CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN NEW POSITIONS CIP POTENTIAL NEW POSITIONS 2022 2023 2024 ADMINISTRATION COMMUNITY DEVELOPMENT BUILDING INSPECTOR $102,000 FIRE ADMINISTRATIVE SUPPORT DUTY CREWS HR/IT IT POSITION $100,000 COMMUNICATIONS SPECIALIST $75,000 PARKS/RECREATION PARK MAINTENANCE $180,000 $100,000 POLICE PATROL OFFICER $159,000 $130,000 CSO TOTAL $282,000 $159,000 $175,000 $130,000 $100,000 $0 7/7/2022 2032 Financial Plan Five Plan FARMINGTON Nook", 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. CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN TRANSFERS CIP TAX LEVY PROJECTS 2022 2023 2024 2025 2026 2027 EDATRANSFER $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 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 $0 $20,000 $0 $0 $0 EMERALD ASH BORER $15,000 $25,000 $40,000 $55,000 $70,000 TOTAL TAX LEVY PROJECTS $987,022 $1,057,022 $1,097,747 $1,179,725 $1,409,725 $1,584,000 LGA PROJECTS 2022 2023 2024 2025 2026 2027 BUILDING MAINTENANCE $45,587 $45,587 $45,587 $45,587 $45,587 $45,587 EDATRANSFER $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 $1,162,609 $1,203,334 $1,285,312 $1,515,312 $1,689,587 CITY OF FARMINGTON Projects CIP This CIP tracks projects the city may undertake in the future. These larger scale projects may include building and or facility projects. 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 $0 $0 $0 $0 $0 SALTSHED $0 $0 $0 $0 $0 $0 PARKING LOTS $1,544,000 $0 1 $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 $0 $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 $0 $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 OTHERSOURCES $0 $0 $0 $0 $0 $0 TOTAL REVENUES $1,544,000 $0 $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% CITY OF FARMINGTON Park Improvement CIP This CIP tracks planned park build outs and improvements to the city's park system. 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 $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 I CITY OF FARMINGTON PlansIncludedint 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. 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 $0 $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 $2,500 $2,500 FIREWATER TENDER REPLACEMENT $0 $0 $0 $0 $0 $0 FIRE TRUCK REPLACEMENT $0 $0 $0 $0 $0 $0 TOTAL $37,250 $29,750 $75,250 $34,250 $3,000 $3,000 2022 2023 2024 2025 2026 2027 STARTING BALANCE $0 $122,750 $163,000 $177,750 $223,500 $380,500 EXPENDITURES $37,250 $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 $0 $0 $0 $0 $0 RETRO TRANSFERS-Fire Tender $135,000 $0 $0 $0 $0 $0 ENDING BALALNCE $122,750 $163,000 $177,750 $223,500 $380,500 $547,500 7/7/2022 2032 Financial Plan Five Plan CITY OF FARMINGTON 5/10 YEAR FINANCIAL PLAN POLICE EQUIPMENT CIP 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 BODYCAMERAS $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 7/7/2022 2032 Financial Plan Five Plan 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 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 $5,000 1 $30,000 1 $50,000 $100,000 $200,000 $300,000 ENDING BALANCE $239,590 -$738,723 -$1,448,086 -$1,973,499 -$1,772,912 -$1,427,325 CITY nr 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 Dakota County City Tax Rates 80.00 70.00 60.00 v x 50.00 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 CITY OF FARMINGTON NEW TAX CAPACITY GROWTH PERCENTAGE 2.50% 2.00% 1.93% 1.50% 1.47% 1.49% 1.30% 1.32% 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 Tax Rate by Entity N N A O co O N A O O O O O O O O WEST ST.PAUL SOUTH ST.PAUL HASTINGS INVER GROVE HEIGHTS FARMINGTON r BURNSVILLE N X O � ROSEMOUNT N fD N APPLE VALLEY MENDOTA HEIGHTS EAGAN LAKEVILLE Im 0 [ n n Ln n � O = O D O X D X X m m m 7/12/2022 FARM NGTON DRAFT 2023 GENERAL FUND BUDGET AND TAX LEVY JULY 11, 2022 14 �-�CITY OF FARMINGTON 1 2023 BUDGET GOALS Support the priorities for 2022/2023 • Business growth • Community engagement • Infrastructure support 2 1 7/12/2022 2023 BUDGET ITEMS OF NOTE • Property taxes— primary funding source • Three new positions added in 2022 • Debt service levy increase - $86,380 2022A Bonds • Transfer from Solid Waste Fund to General Fund - $150,000 • Increased General Fund Transfers Out - $20,000 • Increased Fuel budget across all funds • Vehicle Replacement Plan —33% Funding Increase • Liquor Fund transfer to Park Improvement Fund increased to $100,000 • Draft 2023 budget presented does not include any new positions 3 2023 PROPOSED BUDGET AND TAX LEVY 2022 Budget 2023 Proposed Increase Budget General Fund $3,611,583 $3,873,740 7.26% Revenues General Fund $15,729,719 $16,669,910 5.98% Expenditures Fiscal Disparities $2,351,400 $2,374,914 1.00% General Fund Levy $9,766,736 $10,421,256 6.70% Debt Levy $2,265,788 $2,352,168 3.81% Net Tax Levy $12,032,524 $12,773,424 6.16% 4 2 7/12/2022 2023 PROPOSED GENERAL FUND REVENUES 2022 Budget 2023 Increase Proposed ..- Licenses and Permits $736,700 $915,470 24.27% Intergovernmental Revenue $672,087 $725,207 7.90% Charge for Service $602,460 $605,919 .57% Fines and Forfeitures $50,000 $55,000 10.00% Investment Income $41,600 $51,000 22.60% Miscellaneous $80,878 $48,410 (40.14)% Transfers In $1,427,858 $1,472,734 3.14% Total Revenues $3,611,583 $3,873,740 7.26% i�, 1 5 2023 DRAFT GENERAL FUND EXPENDITURES Budget2022 i ProposedBudget Administration $1,099,249 $1,159,523 5.48% Human Resource $402,112 $405,235 .78% Dakota Broadband $45,500 $37,500 (17.58)% Finance&Risk Management $818,759 $844,707 3.17% Police $5,279,810 $5,468,888 3.58% Fire $1,592,646 $1,742,006 9.38% Community Development $1,059,182 $1,159,476 9.47% Engineering $850,411 $862,897 1.47% Municipal Services $1,609,704 $1,716,574 6.64% Parks&Recreation $1,329,737 $1,610,495 21.11% Transfers $1,642,609 $1,662,609 1.22% ismTotal General Fund Expenditures $15,729,719 $16,669,910 5.98% 6 3 7/12/2022 EXI STI NG DEBT SERVICE 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 7 CITY OF FARMINGTON TAX RATE 80 N � 0) CC) OD co Lo 70 m m v co cD N r (O r (O Lo 00M cli 60 L0 v m L ocy) o m 50 v 40 30 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 8 4 7/12/2022 2023 PROPOSED LEVY ESTI MATED I MPACT • City Portion - Tax 2022 $1,420.33 • Based on Taxable Market Value of $280,629 • City Portion - Tax 2023 (21.70% emv) $1,507.60 $86.97 increase or $7.25 per month in City property tax portion with estimated 21.70% increase in Market Value • Based on Taxable Market Value of $341,525 9 5 � ...' rte" - Building Deptartmenty 1. Broc Haskamp (7 months) 2. Increase in permits a. 8 Multi-Family b. 27 Commercial Permits (+60%) - c. 68 Single-Family (+9%) a... d.491 Permits (33%) Planning & Zoning :_[- a. - 1. Vermillion Valley Development 2. Great Oak Academy 3. Vita Attiva 4. Whispering Fields S. Meadow View Preserve _ 6. Denmark Housing Addition • • • 7. And more! Economic Development 1. 196 Interactions - - - - a. 61 - Site Location, 44 - Property - - Development, 40 - Grants and • 21 - Start Up Assistance. • • • • 2. GIS for CD & others! • Code Enforcement 1. 146 Code Violations (1st) — 2023 Personnel Request Justification The authorized strength of our Patrol Division has been at 13 officers and 4 sergeants since 2010. When I was appointed as Interim Chief in August of 2018, 1 immediately began taking an extended look at our staffing levels and organizational structure. I concluded that we needed to add a Deputy Chief position and we needed to add a Patrol Officer position. In conversations with City Administrator McKnight, it was clear that the prospects of getting both positions was unlikely. I was able to propose a solution that met our immediate needs but really only kicked the can down the road a few years with regard to patrol staffing. I proposed that we add the Deputy Chief position and then reorganize our sergeant's ranks. At the time, we had an Administrative Sergeant, a Detective Sergeant and four Patrol Sergeants. I moved the Administrative Sergeant into the Patrol Division, giving us five Patrol Sergeants. However, using Patrol Sergeants to address increased workload and staffing issues is not ideal as they have supervisory and administrative duties that reduce their availability to respond to calls for service. That plan was approved and subsequently implemented in January of 2020. While I would defend that decision as the right one at that time, I never intended it to be a long-term answer to our patrol staffing concerns. Right now, we stand at 13 Patrol Officers and 5 Patrol Sergeants for a total of 18 personnel. Ideally, we would be at 15 Patrol Officers and 4 Patrol Sergeants for a total of 19 personnel. This approach would then allow me to restore the Administrative Sergeant position. My vision is that position would be a rotating position where a different sergeant fills the role each year. I would like to use it to develop our sergeants' administrative, management, and community engagement skills to further prepare them for greater roles in the future. It is difficult to do this now due to the disjointed nature of patrol schedules and unpredictable nature of their availability because of their call responsibilities. The events of 2020 and 2021, namely the pandemic and then the ongoing issues with civil unrest (and preparing for additional unrest), had some positive and some negative effects on our staffing situation. On the positive side, our normal calls for service and self-initiated activity levels were down significantly, as we sought to limit any unnecessary contact with the public. The purpose was to preserve our ability to respond to emergencies by not overexposing our staff to COVID over minor issues. This lightened the workload and reduced some strain on our staff. On the negative side, we spent over a full year on an emergency schedule of 12-hour shifts. While our staff understood the need, it was largely unpopular and created significant difficulties in their personal lives as a result. Childcare, for example, can be difficult to arrange when you work a night shift. It gets even more difficult if you need it for 12 hours or more. Also on the negative, vacations were largely unavailable during the first year of the pandemic due to venue closures and travel restrictions. Right around the time the world was coming back online, I had to tell our staff that we wouldn't be taking vacation requests because we needed all of them available for civil disturbance response during and after the trials of the former Minneapolis officers. Increased training mandates from the State are also adding to the strain on the patrol staff. Every class they are required to take either removes them from patrol for a day or costs the city in overtime. We also have a seniority problem. I often tout our amazing retention here, but that means most of our staff is now earning maximum amounts of vacation or PTO time. In 2018, our staff used an average of 300 hours of leave time per year. In 2021,that number had increased to 350 hours. One thing I failed to account for in 2018 was on-duty training time. In 2021, with on- duty training time included, our patrol staff was unavailable to us, on average, for a total of 470 hours per year. All of this is having an impact and taking its toll on our patrol staff. Anecdotally, I see the early signs of burnout in some of our staff. The increased leave time and training requirements are having a negative effect on our ability to staff patrol. We have set our minimum patrol staffing level at two personnel. We require two patrol personnel to be on-duty at all times. That is the bare minimum number of cops required to respond to emergencies. If we are at minimum staffing, we have to prioritize our policing strategies, placing a higher emphasis on emergency response and lower emphasis on proactive measures. When the schedules are full and nobody has time off or training scheduled, the number of patrol officers on duty is actually anywhere from three to six, depending on time of day and shift overlap. To illustrate the serious nature of the problem, I examined our schedule beginning January 1, 2022. In the first six months of 2022, we have been at or below minimum patrol staffing for a total of 656 hours. That is over 27 calendar days where we have had two or less patrol officers working. The stressors on our patrol staff are only going to increase. Call levels are not likely going to decrease. Population is going to continue to increase as will the demand for services. Crime is increasing all around us and while we still have an incredibly low crime rate and safe community, I would expect to see some increase here. I never intended for the minor reorganization in 2020 to be a long-term answer to the patrol staffing issue. We have wrung all of the efficiency that we can out of that solution. I respectfully ask that you consider the attached request to add two additional sworn officers to our department. That would bring our total authorized strength from 25 sworn officers to 27. A couple of items of note are the dollar range included in the request. Based on the current state of the police officer applicant pool, I anticipate that we may need to consider bringing in lateral entry candidates in above the starting salary for the position. The range shown considers starting pay all the way up to top pay without longevity included. Additionally, I have no real idea what the city pays for benefits, so I simply estimated those numbers to come up with the range of$120,000 to $140,000 per position for salary and benefits. We would also need to increase our uniform budget by approximately$16,000 for each additional staff position. Thank you.