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HomeMy WebLinkAbout09(A) - Consider Approval of a Resolution Approving Preliminary 2022 City Budgets and Certifying Preliminary 2022 City of Prior Lake Property Tax Levy to Scott County Department of Taxation Report9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND Taxes 8,923,782 9,433,959 9,433,959 10,227,232 793,273 8.41 Charges for Services 1,731,517 1,800,172 1,800,172 2,022,200 222,028 12.33 Intergovernmental 4,092,040 2,160,235 2,160,235 2,539,881 379,646 17.57 Miscellaneous Revenues 372,421 240,800 240,800 257,200 16,400 6.81 Sale of assets 2,603 - - - - - Transfers in 470,000 523,000 523,000 546,000 23,000 4.40 Licenses and Permits 900,601 795,551 795,551 897,323 101,772 12.79 Fines and Forfeitures 1,652 - - - - - TOTALS - FUND 101 16,494,616 14,953,717 14,953,717 16,489,836 1,536,119 10.27 DEBT SERVICE FUNDS Taxes 3,316,380 3,121,498 3,121,498 3,455,529 334,031 10.70 Miscellaneous Revenues 734,149 492,776 492,776 495,204 2,428 0.49 Transfers in 1,260,291 1,206,925 1,206,925 1,342,764 135,839 11.25 TOTALS - DEBT SERVICE FUNDS 5,310,820 4,821,199 4,821,199 5,293,497 472,298 9.80 Fund 210 - CABLE FRANCHISE FUND Charges for Services 31,276 28,000 28,000 23,800 (4,200) (15.00) Miscellaneous Revenues 2,667 - - - - - TOTALS - FUND 210 33,943 28,000 28,000 23,800 (4,200) (15.00) Fund 225 - CAPITAL PARK FUND Charges for Services 174,820 455,000 455,000 586,500 131,500 28.90 Miscellaneous Revenues 66,806 41,297 41,297 22,000 (19,297) (46.73) TOTALS - FUND 225 241,626 496,297 496,297 608,500 112,203 22.61 BUDGET REPORT City of Prior Lake Revenues From Amended Budget 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 240 - EDA SPECIAL REVENUE FUND Taxes 273,460 349,750 349,750 360,000 10,250 2.93 Charges for Services 188,485 8,450 8,450 24,360 15,910 188.28 Miscellaneous Revenues 17,266 5,300 5,300 5,400 100 1.89 Transfers in 161,250 - - - - - TOTALS - FUND 240 640,461 363,500 363,500 389,760 26,260 7.22 Fund 410 - REVOLVING EQUIPMENT FUND Taxes 624,897 835,000 835,000 700,000 (135,000) (16.17) Miscellaneous Revenues 21,107 9,600 9,600 6,800 (2,800) (29.17) Sale of assets 63,717 - - - - - Transfers in 215,000 310,000 310,000 217,500 (92,500) (29.84) Debt Issued - 555,000 555,000 - (555,000) (100.00) TOTALS - FUND 410 924,721 1,709,600 1,709,600 924,300 (785,300) (45.93) Fund 430 - REVOLVING PARK EQUIP FUND Taxes 318,599 375,000 375,000 405,000 30,000 8.00 Miscellaneous Revenues 61,167 10,500 10,500 13,800 3,300 31.43 TOTALS - FUND 430 379,766 385,500 385,500 418,800 33,300 8.64 Fund 440 - FACILITIES MANAGEMENT FUND Taxes 29,523 80,000 80,000 105,000 25,000 31.25 Intergovernmental - - - 200,000 200,000 - Miscellaneous Revenues 17,468 5,800 5,800 6,300 500 8.62 Transfers in 99,000 130,000 130,000 24,600 (105,400) (81.08) TOTALS - FUND 440 145,991 215,800 215,800 335,900 120,100 55.65 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 BUDGET ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED CLASSIFICATION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Revenues From Amended Budget Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND Taxes 79,957 120,000 120,000 - (120,000) (100.00) Charges for Services - - - 1,050,000 1,050,000 - Miscellaneous Revenues 327,499 180,800 180,800 156,431 (24,369) (13.48) Transfers in 257,935 - - - - - TOTALS - FUND 450 665,391 300,800 300,800 1,206,431 905,631 301.07 Fund 601 - WATER FUND Charges for Services 5,670,214 4,411,774 4,411,774 4,787,099 375,325 8.51 Intergovernmental 17,656 - - - - - Miscellaneous Revenues 190,292 54,775 54,775 67,400 12,625 23.05 Other Financing Sources 16,762 - - - - - TOTALS - FUND 601 5,896,203 4,466,549 4,466,549 4,854,499 387,950 8.69 Fund 602 - STORM WATER UTILITY Charges for Services 1,206,327 1,190,699 1,190,699 1,197,920 7,221 0.61 Intergovernmental 3,825 - - - - - Miscellaneous Revenues 77,101 14,500 14,500 22,800 8,300 57.24 Storm Water Charges 1,500 - - - - - TOTALS - FUND 602 1,288,753 1,205,199 1,205,199 1,220,720 15,521 1.29 Fund 604 - SEWER FUND Charges for Services 5,286,923 4,317,042 4,317,042 5,176,621 859,579 19.91 Intergovernmental 11,322 - - - - - Miscellaneous Revenues 74,561 19,800 19,800 31,200 11,400 57.58 Other Financing Sources 16,762 - - - - - TOTALS - FUND 604 5,389,568 4,336,842 4,336,842 5,207,821 870,979 20.08 TOTALS - ALL FUNDS 37,411,859 33,283,003 33,283,003 36,973,864 3,690,861 11.09 3,690,861 11.09 From Original Budget 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE Fund 101 - GENERAL FUND 41110.00 MAYOR & COUNCIL 65,689 74,934 74,934 75,528 594 0.79 41130.00 ORDINANCE 5,440 6,000 6,000 6,000 - - 41320.00 ADMINISTRATION 317,739 270,152 270,152 390,285 120,133 44.47 41330.00 BOARDS & COMMISSIONS 5,507 11,365 11,365 11,365 - - 41400.00 CITY CLERK FUNCTIONS 117,161 122,272 122,272 129,515 7,243 5.92 41410.00 ELECTIONS 58,393 7,000 7,000 62,200 55,200 788.57 41520.00 FINANCE 499,898 565,250 565,250 595,446 30,196 5.34 41540.00 INTERNAL AUDITING 31,184 41,200 41,200 42,200 1,000 2.43 41550.00 ASSESSING 216,236 224,260 224,260 231,135 6,875 3.07 41610.00 LEGAL 193,279 180,000 180,000 190,000 10,000 5.56 41820.00 HUMAN RESOURCES 303,206 316,074 333,674 331,775 (1,899) (0.57) 41830.00 COMMUNICATIONS 150,044 162,070 162,070 164,290 2,220 1.37 41910.00 COMMUNITY DEVELOPMENT 450,154 379,924 379,924 387,386 7,462 1.96 41920.00 INFORMATION TECHNOLOGY 470,646 385,116 385,116 397,659 12,543 3.26 41940.00 FACILITIES - CITY HALL 492,870 524,030 524,030 553,013 28,983 5.53 42100.00 POLICE 5,026,592 5,303,369 5,539,473 5,980,662 441,189 7.96 42200.00 FIRE 995,854 1,076,350 1,076,350 1,239,743 163,393 15.18 42400.00 BUILDING INSPECTION 678,073 730,801 730,801 809,430 78,629 10.76 42500.00 EMERGENCY MANAGEMENT 10,335 15,090 15,090 16,190 1,100 7.29 42700.00 ANIMAL CONTROL 29,195 28,800 28,800 28,800 - - 43050.00 ENGINEERING 356,121 389,105 389,105 419,290 30,185 7.76 43100.00 STREET 1,173,055 1,365,438 1,365,438 1,383,844 18,406 1.35 43400.00 CENTRAL GARAGE 470,236 491,373 491,373 517,418 26,045 5.30 45100.00 RECREATION 338,774 481,813 481,813 521,020 39,207 8.14 45200.00 PARKS 1,227,649 1,604,132 1,604,132 1,761,358 157,226 9.80 45500.00 LIBRARIES 62,349 68,224 68,224 70,446 2,222 3.26 80000.00 Transfers to other Funds 538,018 253,575 253,575 223,838 (29,737) (11.73) TOTALS - FUND 101 14,283,697 15,077,717 15,331,421 16,539,836 1,208,415 7.88 BUDGET REPORT City of Prior Lake Expenditures From Amended Budget 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget DEBT SERVICE FUNDS 47000.00 DEBT SERVICE 5,324,463 5,243,627 5,243,627 5,360,912 117,285 2.24 80000.00 Transfers to other Funds 155,645 75,000 75,000 233,000 158,000 210.67 TOTALS - DEBT SERVICE FUNDS 5,480,108 5,318,627 5,318,627 5,593,912 275,285 5.18 Fund 210 - CABLE FRANCHISE FUND 41340.00 PUBLIC CABLE ACCESS 11,122 - - - - - TOTALS - FUND 210 11,122 - - - - - Fund 225 - CAPITAL PARK FUND 45200.00 PARKS 368,906 956,000 956,000 3,200 (952,800) (99.67) TOTALS - FUND 225 368,906 956,000 956,000 3,200 (952,800) (99.67) Fund 240 - EDA SPECIAL REVENUE FUND 46500.00 ECONOMIC DEVELOPMENT 254,757 519,294 519,294 620,557 101,263 19.50 46503.00 TECH VILLAGE INCUBATOR 2,900 5,500 5,500 - (5,500) (100.00) TOTALS - FUND 240 257,657 524,794 524,794 620,557 95,763 18.25 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 410 - REVOLVING EQUIPMENT FUND 41830.00 COMMUNICATIONS - - 32,445 - (32,445) (100.00) 42100.00 POLICE 381,336 250,900 290,833 298,900 8,067 2.77 42200.00 FIRE 134,879 792,000 792,000 188,000 (604,000) (76.26) 42400.00 BUILDING INSPECTION - 35,000 35,000 - (35,000) (100.00) 43100.00 STREET 519,854 289,600 289,600 65,000 (224,600) (77.56) 43400.00 CENTRAL GARAGE 16,307 20,000 20,000 20,000 - - 45200.00 PARKS 63,384 262,500 262,500 349,500 87,000 33.14 49400.00 WATER - 83,000 83,000 - (83,000) (100.00) 49450.00 SEWER - 83,000 83,000 - (83,000) (100.00) TOTALS - FUND 410 1,115,760 1,816,000 1,888,378 921,400 (966,978) (51.21) Fund 430 - REVOLVING PARK EQUIP FUND 45200.00 PARKS 62,120 525,000 525,000 158,000 (367,000) (69.90) TOTALS - FUND 430 62,120 525,000 525,000 158,000 (367,000) (69.90) Fund 440 - FACILITIES MANAGEMENT FUND 41940.00 FACILITIES - CITY HALL 10,660 240,000 240,000 - (240,000) (100.00) 42100.00 POLICE - 22,500 22,500 167,000 144,500 642.22 42200.00 FIRE 10,357 120,000 120,000 200,000 80,000 66.67 43400.00 CENTRAL GARAGE - 50,100 50,100 86,000 35,900 71.66 45500.00 LIBRARIES 86,529 15,000 15,000 - (15,000) (100.00) 49400.00 WATER 6,943 - - - - - TOTALS - FUND 440 114,489 447,600 447,600 453,000 5,400 1.21 9/7/2021 - Council Meeting 2020 2021 2021 2022 2022 2022 ACTIVITY ORIGINAL AMENDED PROPOSED PROPOSED PROPOSED DEPT DESCRIPTION BUDGET BUDGET BUDGET AMT CHANGE % CHANGE BUDGET REPORT City of Prior Lake Expenditures From Amended Budget Fund 450 - PERMANENT IMPROVEMENT REVOLVING FUND 43100.00 STREET 590,277 - - - - - 80000.00 Transfers to other Funds 279,933 287,150 287,150 282,751 (4,399) (1.53) TOTALS - FUND 450 870,210 287,150 287,150 282,751 (4,399) (1.53) Fund 601 - WATER FUND 41520.00 FINANCE 99,393 108,246 108,246 114,819 6,573 6.07 47000.00 DEBT SERVICE 54,450 - - - - - 49400.00 WATER 3,144,090 4,307,849 4,307,849 3,202,650 (1,105,199) (25.66) 80000.00 Transfers to other Funds 1,215,160 1,035,700 1,035,700 912,425 (123,275) (11.90) TOTALS - FUND 601 4,513,093 5,451,795 5,451,795 4,229,894 (1,221,901) (22.41) Fund 602 - STORM WATER UTILITY 49420.00 WATER QUALITY 607,022 982,393 1,057,764 1,048,889 (8,875) (0.84) 80000.00 Transfers to other Funds 85,780 127,000 127,000 118,600 (8,400) (6.61) TOTALS - FUND 602 692,802 1,109,393 1,184,764 1,167,489 (17,275) (1.46) Fund 604 - SEWER FUND 41520.00 FINANCE 100,604 107,721 107,721 114,349 6,628 6.15 47000.00 DEBT SERVICE 54,450 - - - - - 49450.00 SEWER 3,259,483 3,706,174 3,706,174 4,153,319 447,145 12.06 80000.00 Transfers to other Funds 632,110 366,000 366,000 334,750 (31,250) (8.54) TOTALS - FUND 604 4,046,647 4,179,895 4,179,895 4,602,418 422,523 10.11 TOTALS - ALL FUNDS 31,816,611 35,693,971 36,095,424 34,572,457 (1,522,967) (4.22) (1,121,514) (3.14) From Original Budget City of Prior Lake2022 Council Workshop 9/7/2021 2022 BudgetAttachment 1 Budgeted FundsPreliminaryDebt Capital Revolving Revolving Park Permanent Facilities TotalTotalGeneral Service Cable Park Equipment Equipment Improvement Management EDA Governmental Water Sewer Water Quality Enterprise BudgetedFund Funds Fund Fund Fund Fund Revolving Fund Fund Funds Fund Fund Fund Funds FundsRevenues / SourcesProperty TaxesLevy - Tax Capacity 10,003,394$ 3,455,529$ -$ -$ 700,000$ 405,000$ -$ 105,000$ 360,000$ 15,028,923$ -$ -$ -$ -$ 15,028,923$ Levy - Market Value 223,838 - - - - - - 223,838 - - - - 223,838 MVHC Aid - - - - - - - - - - - - - Special Assessments - 457,042 - - - 150,731 - - 607,773 - - - - 607,773 Licenses & Permits 897,323 - - - - - - 897,323 - - - - 897,323 Fines & Forfeits - - - - - - - - - - - - - Intergovernmental 2,539,881 - - - - 200,000 - 2,739,881 - - - - 2,739,881 Charges for Services 2,022,200 - 23,800 562,500 - 1,050,000 - 24,360 3,682,860 4,787,099 5,176,621 1,197,920 11,161,640 14,844,500 Other Revenues 257,200 38,162 - 46,000 6,800 13,800 5,700 6,300 5,400 379,362 67,400 31,200 22,800 121,400 500,762 Bond Proceeds - - - - - - - - - - . - - Lease Proceeds - - - - - - - - - - - - - - - Transfers From Other FundsGeneral Fund - 223,838 - - - - - - - 223,838 - - - - 223,838 Debt Service Funds - 233,000 - - - - - - - 233,000 - - - - 233,000 Water Fund 218,000 577,675 - - 108,750 - - 8,000 - 912,425 - - - - 912,425 Sewer Fund 218,000 - - - 108,750 - - 8,000 - 334,750 - - - - 334,750 Water Quality Fund 110,000 - - - - - - 8,600 - 118,600 - - - - 118,600 Trunk Reserve Fund - - - - - - - - - - - - - - - TIF Fund - 25,500 - - - - - - - 25,500 - - - - 25,500 PIR Fund - 282,751 - - - - - - - 282,751 - - - - 282,751 Facilities Management Fund - - - - - - - - - - - - - - - Capital Park Fund - - - - - - - - - - - - - - - Police Forfeiture Fund - - - - - - - - - - -$ -$ -$ - Total Revenues / Sources 16,489,836$ 5,293,497$ 23,800$ 608,500$ 924,300$ 418,800$ 1,206,431$ 335,900$ 389,760$ 25,690,824$ 4,854,499$ 5,207,821$ 1,220,720$ 11,283,040$ 36,973,864$ Expenditures / UsesEmployee Services 11,990,361$ -$ -$ -$ -$ -$ -$ -$ 143,057$ 12,133,418$ 879,448$ 869,955$ 356,339$ 2,105,742$ 14,239,160$ Current Expenditures 4,320,637 - - 3,200 - - - - 92,500 4,416,337 1,412,171 2,208,663 195,550 3,816,384 8,232,721 Capital Outlay 5,000 - - - 921,400 158,000 - - 385,000 1,469,400 191,000 290,200 - 481,200 1,950,600 Capital Improvements - - - - - - - 453,000 - 453,000 665,000 729,000 497,000 1,891,000 2,344,000 Subtotal 16,315,998$ -$ -$ 3,200$ 921,400$ 158,000$ -$ 453,000$ 620,557$ 18,472,155$ 3,147,619$ 4,097,818$ 1,048,889$ 8,294,326$ 26,766,481$ Transfers To Other FundsGeneral Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 218,000$ 218,000$ 110,000$ 546,000$ 546,000$ Treatment Plant (Debt) - - - - - - - - - - - - - - - Equipment Fund - - - - - - - - - - 108,750 108,750 - 217,500 217,500 Park Equipment Fund - - - - - - - - - - - - - - - Debt Service Funds 223,838 233,000 - - - - 282,751 - - 739,589 577,675 - - 577,675 1,317,264 PIR Fund - - - - - - - - - - - - - - - Facilities Management Fund - - - - - - - - - - 8,000 8,000 8,600 24,600 24,600 EDA Fund - - - - - - - - - - - - - - - Severance Compensation Fund - - - - - - - - - - - - - - - Contingency - - - - - - - - - - - - - - - Debt Service - 5,360,912 - - - - - - - 5,360,912 169,850 169,850 - 339,700 5,700,612 Subtotal 223,838$ 5,593,912$ -$ -$ -$ -$ 282,751$ -$ -$ 6,100,501$ 1,082,275$ 504,600$ 118,600$ 1,705,475$ 7,805,976$ Total Expenditures / Uses 16,539,836$ 5,593,912$ -$ 3,200$ 921,400$ 158,000$ 282,751$ 453,000$ 620,557$ 24,572,656$ 4,229,894$ 4,602,418$ 1,167,489$ 9,999,801$ 34,572,457$ Change in Fund Balance (50,000)$ (300,415)$ 23,800$ 605,300$ 2,900$ 260,800$ 923,680$ (117,100)$ (230,797)$ 1,118,168$ 624,605$ 605,403$ 53,231$ 1,283,239$ 2,401,407$ 2022 Property Tax Levy Comparison2022 Council Workshop 9/7/2021Attachment 1Change 21 - 22Property Taxes 2021 2022 Amount PercentLevy - Tax Capacity General Fund - Operating 9,180,384$ 10,003,394$ 823,010$ 8.96% Debt Service Funds 3,306,498 3,455,529 149,031 4.51% Revolving Equipment Fund 650,000 700,000 50,000 7.69% Revolving Park Equipment Fund 375,000 405,000 30,000 8.00% Permanent Improvement Revolving120,000 - (120,000) -100.00% Facilities Management Fund 80,000 105,000 25,000 31.25%Levy - Economic Dev Authority 349,750 360,000 10,250 2.93%14,061,632 15,028,923 967,291 6.88%Levy - Market Value - General Fund 253,575 223,838 (29,737) -11.73%Total Levy 14,315,207$ 15,252,761$ 937,554$ 6.55%2022 Budget Expenditure Comparisons (2021 Original Budgets)Capital Revolving Revolving Park Permanent Facilities TotalTotalGeneral Debt Service Cable Park Equipment Equipment ImprovementManagementEDAGovernmental Water Sewer Water Quality Enterprise BudgetedFundFundsFundFundFundFund Revolving FundFundFundsFundFundFundFundsFunds2022 Total Expenditures / Uses 16,539,836$ 5,593,912$ -$ 3,200$ 921,400$ 158,000$ 282,751$ 453,000$ 620,557$ 24,572,656$ 4,229,894$ 4,602,418$ 1,167,489$ 9,999,801$ 34,572,457$ 2021 Total Expenditures / Uses 15,077,717$ 5,318,627$ -$ 956,000$ 1,816,000$ 525,000$ 287,150$ 447,600$ 524,794$ 24,952,888$ 5,451,795$ 4,179,895$ 1,109,393$ 10,741,083$ 35,693,971$ Change 2021 to 2022 ($) 1,462,119$ 275,285$ -$ (952,800)$ (894,600)$ (367,000)$ (4,399)$ 5,400$ 95,763$ (380,232)$ (1,221,901)$ 422,523$ 58,096$ (741,282)$ (1,121,514)$ Change 2021 to 2022 (%) 9.70% 5.18% n/a n/a -49.26% -69.90% n/a 1.21% 18.25% -1.52% -22.41% 10.11% 5.24% -6.90% -3.14%2022 Budget Expenditure Comparisons (2021 Amended Budgets)Capital Revolving Revolving Park Permanent Facilities TotalTotalGeneral Debt Service Cable Park Equipment Equipment ImprovementManagementEDAGovernmental Water Sewer Water Quality Enterprise BudgetedFundFundsFundFundFundFund Revolving FundFund FundsFundFundFundFundsFunds2022 Total Expenditures / Uses 16,539,836$ 5,593,912$ -$ 3,200$ 921,400$ 158,000$ 282,751$ 453,000$ 620,557$ 24,572,656$ 4,229,894$ 4,602,418$ 1,167,489$ 9,999,801$ 34,572,457$ 2021 Total Expenditures / Uses 15,331,421$ 5,318,627$ -$ 956,000$ 1,888,378$ 525,000$ 287,150$ 447,600$ 524,794$ 25,278,970$ 5,451,795$ 4,179,895$ 1,184,764$ 10,816,454$ 36,095,424$ Change 2021 to 2022 ($) 1,208,415$ 275,285$ -$ (952,800)$ (966,978)$ (367,000)$ (4,399)$ 5,400$ 95,763$ (706,314)$ (1,221,901)$ 422,523$ (17,275)$ (816,653)$ (1,522,967)$ Change 2021 to 2022 (%) 7.88% 5.18% n/a -99.67% -51.21% -69.90% -1.53% 1.21% 18.25% -2.79% -22.41% 10.11% -1.46% -7.55% -4.22% 1 2022 Proposed Tax Levy Components Attachment 3 LEVY CHANGE TO MAINTAIN CURRENT SERVICE LEVELS – 6.55% Economic Development Authority (EDA)Tax Levy Component .07% EDA Tax Levy Increase - $10,000 The EDA budget includes a funding increase of $10,000 to bring the EDA tax levy to $360,000. This is an incremental increase in funding primarily for property taxes and maintenance costs for 2022 planned EDA owned properties including 4662/4662 Dakota St SE and 16298 Main Ave SE. Personnel Adds / New Funding – 4.94% (Public Safety funding -4.12%/Other staff fundings - .82%) Police 2022 Impact of 2021 Mid-Year Wage Adjustment - $251,000 Incremental increase related to the 2022 salary and benefits budget for the Police Department. A compensation stu dy was conducted and approved for 7/1/2021 market rate adjustments to the Officers and Sergeants salary schedules. Assistant Fire Chief - $142,000 In 2022, the department seeks to add an Assistant Fire Chief to assist the Fire Chief with expanding duties and responsibilit ies including administration, training, and fire inspection duties. In addition to supporting the Chief in regular operations, th e Assistant Chief would play a critical role in two areas: life safety inspections and training. Position request included in Personnel Plan presented April 5, 2021. Budget includes salary and benefits. Police Officer - $100,000 The Prior Lake Police Department is unique in that it provides services to two communities, Prior Lake and the SMSC, as well as a large gaming enterprise. The government-to-government agreement works well operationally but requires significant resources. The immediate needs for the Police Department include the addition of three police officers (tribal liaison, investigator and patrol officer) and one civilian FTE to run the property room and assist with investigations support work. Discussions are ongoing on how to best meet these needs while ensuring goals across the City are met and the financial impacts are managed. As a result of this process, the Personnel Plan includes the addition of one FTE for the Police Department annually from 2022-2026. The number each year could be raised or accelerated as needs evolve and if a long-term contract with the SMSC is reached. Position request included in Personnel Plan presented April 5, 2021. Budget includes salary and benefits. Public Safety Workers Comp Rate Increase - $97,000 Premium adjustment based on updated experience modifier and rate changes from the League of MN Cities. Preliminary guidance released included expectations of a 20% rate increase for public safety classes for 2022. Administrative Assistant (Front Desk Receptionist) - $67,000 The administrative assistant position was eliminated due to the closure of City Hall during the pandemic in late 2019. The City needs full-time coverage at the front desk to greet visitors and route phone calls. Additionally, many of the tasks this position once did to support communications need to be returned so the Communications Manager can focus ‘big picture’ marketing and promotion of the City. Position request included in Personnel Plan presented April 5, 2021. Budget includes salary and benefits. Development Services Assistant (0.8 FTE)- $50,000 Prior Lake issues approximately 2,600 building permits and completes about 5,000 inspections per year, each requiring process ing, scheduling, and customer support. With continued growth and large development projects on the horizon, staff proposes to covert the seasonal development services assistant into a regular part-time position to meet the demand for building services. Position request included in Personnel Plan presented April 5, 2021. Budget includes salary and benefits. 2 Mandatory Items – 1.65% STAFFING Wage/COLA and Benefits - $275,000 The budget includes a proposed cost of living adjustment, city payroll taxes and health insurance premium contribution increase. The budget also includes seasonal salaries. Health Insurance - $46,000 The city’s current health insurance provider indicated the city may see a premium increase of 10% for the 2022 insurance renewal. Workers Compensation - $16,000 Premium adjustment based on updated experience modifier and rate changes from the League of MN Cities. Preliminary guidance released included expectations of a 10% rate increase and potential reclassification for certain employee functions for 2022. Election Judges - $54,000 An increase in election judges is needed due to an August primary election, the November general election, and ongoing early voting. CURRENT EXPENDITURES Maintenance Agreements – $43,000 Increase in funding for maintenance agreements including general, building and equipment maintenance. Property/General Liability Insurance - $22,000 Rate increase for property (10%) and general liability (12%) based on LMCIT guidance. Professional Services - $58,000 increase in professional service costs for legal, engineering and the city’s assessment contract with Scott County. Software Service Contracts – $15,000 New antivirus software and an increase in the Fire department’s timekeeping software. Police Camera Technology Contract - $52,000 Estimated contract cost for a comprehensive Police camera technology contract that includes body camera, taser and video storage. The current contract expires in 2022 and a new contract will cover a five-year period. NONTAX REVENUE SOURCES/OTHER Net Revenue increase of $742,000 offset with Levy Impact of Change in Use of Reserves from 2021 to 2022 of $278,000 $328,000 2021 General Fund use of reserves for recurring items 50,000 2022 General Fund use of reserves $278,000 Levy impact of Change in Use of Reserves between yrs. • $205k for additional building permit and plan check revenue. The city collects building permit and plan check revenue on new residential and townhome units built. The estimate for new construction for 2022 is 150 units which is more than the 2021 estimate of 125 units. As we wind down from the pandemic impacts and evaluate the property available for development, staff has adjusted the annual building permits estimate to 150/year for the foreseeable future. • $300k for additional SMSC Police Aid. The financial plan includes an incremental increase in SMSC aid for Policing which will be adjusted, as needed, based on the agreement between the SMSC Business Council and the City Council. The proposed increase for 2022 is $300k bringing the total SMSC police aid contribution to $1,000,000 in 2022. • $82k for additional Minnesota state aid for Street Maintenance, Police and Fire including an estimated increase for the 2022 police officer and assistant fire chief staff additions. • $31k Fire & Rescue Services Revenue from Townships: The costs for the Assistant Fire Chief are included in the cost calculation for the Fire & Rescue Services agreement with Credit River and Spring Lake Townships. • $27k for facility rent from the Prior Lake Spring Lake Watershed District (PLSLWD) for the space they are leasing at City Hall. • $278k increase in tax levy for on-going expenditures/revenue that were funded with reserves in the prior year. The 2021 use of reserves for ongoing revenue/expenditure items of $327,750 is comprised of the following: o $100,000 shortfall in SMSC Police aid 3 o $24,000 reduction in the estimate of building permit and plan check revenue o $63,000 Police overtime adjustment o $23,750 Police workers compensation adjustment o $117,000 Police midyear wage adjustment 2022 Planned Use of Reserves is $50,000 to fund the following items: o Community Survey – The survey is completed every three to five years and planned to be funded from reserves. GENERAL FUND RESERVE Background information: The city’s comprehensive financial management plan calls for maintaining a fund balance between 40-50% to ensure adequate reserves for cash flow, unplanned expenditures, and to maintain the city’s credit worthiness (AA+ credit r ating). Staff recommends the use of reserves for one-time expenditures or revenue shortfall; otherwise, the fund balance could drop below the level stated in the comprehensive financial management plan over time. The total 2021 use of reserves is $1,127,704 comprised of the following items: $849,955 of the use of reserves was for the following one-time items: • $800,000 for a planned transfer of ARPA funds to the Facilities Management Fund for future projects • $17,600 for professional services for a city compensation study • $32,355 for purchase of Police field equipment $277,750 of the use of reserves was for recurring items. In 2022, tax levy is needed to fund these items that were funded wi th reserves in 2021: • $100,000 shortfall in SMSC Police aid • $24,000 reduction in the estimate of building permit and plan check revenue • $63,000 Police overtime adjustment • $23,750 Police workers compensation adjustment • $117,000 Police midyear wage adjustment 2022 Planned Use of Reserves is $50,000 to fund the following items: • Community Survey – The survey is completed every three to five years and planned to be funded from reserves. Capital Improvement Program (CIP) Tax Levy Components - (.10%) Equipment Replacement funding - $50,000 The Equipment Replacement Plan (ERP) utilizes general tax levies to support replacement of the City’s equipment and vehicle fleet. The ten-year annualized cost for the plan is about $1.38M. The financing plan reflects a gradual increase in the tax levy until the annual levy reaches $1M by the year 2028. The proposed total levy for 2022 is $917k. Since the proposed levy increase is gradual, bonding may be required for the plan to meet our funding needs. Park Equipment Replacement funding -$30,000 The Revolving Park Plan funds capital replacement projects, park amenities, and trail, sidewalk, and boardwalk replacement. The plan proposes a phased increase in the tax levy to cover the capital projects in the plan. 2022 projects include the Northwood playground replacement and the Crystal Lake aerator. Facilities Management Plan funding -$25,000 The Facility Management Plan (FMP) was developed to plan for major repairs, replacements, and upgrades for all city facilities on a long-term basis (25 years). It does not cover minor expenses for repairs and maintenance. Those will continue to be funded through the operating budgets. 2022 includes carpet and minor renovations at the Police Station, roof work at the salt building and renovations for the duty crew at Fire Station 1.