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10.5. SR 09-08-2020 Request for Action To Item Number Mayor and City Council 10.5 Agenda Section Meeting Date Prepared by Work Session September 8, 2020 Lori Ziemer, Finance Director Item Description Reviewed by 2021 Budget Cal Portner, City Administrator Reviewed by Action Requested Continue 2021 budget discussion. Background/Discussion The General Fund budget for 2021 is currently $17,599,600, which is a 3.4% increase over 2020. The city was able to realize General Fund savings of $14,000 related to its workers compensation insurance renewal. The preliminary tax levy is $13,310,920 and is a 3.5% increase. This does not include any additional amounts that may be considered for the public works facility debt or sinking fund reserves. With the estimated NTC value of $29,773,925 received from the county, an additional $385,000 can be utilized if the Council chooses to maintain a tax rate similar to 2020. On September 21, the Council will adopt the maximum preliminary tax levy for taxes payable 2021 to be certified to the county by September 30. The final tax levy will be adopted in December and can be the same or lower, but cannot be greater, than the preliminary tax levy. As part of the budget process, a five-year General Fund and city tax rate projection is presented to assist in the decision-making process in achieving the city’s overall goal of financial sustainability. The forecast assumes existing debt and known decisions and does not presume future debt or decisions of the Council. Conservative assumptions are utilized for growth trends, inflationary factors, interest earnings, and other factors. Staff is seeking council direction regarding the General Fund budget and preliminary tax levy for adoption on September 21. Financial Impact N/A Mission/Policy/Goal The city’s mission is to grow responsibly and be good stewards for every dollar. The Council approved a goal to build sustainable reserve for future capital costs. A method of meeting this goal is to transition debt service payments to the tax levy and establish sinking fund reserves for the future replacement of city assets. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Attachments  2021General Fund Summary  2021 Preliminary Tax Levy  Personnel Request Summary  Capital Outlay Summary  General Fund/City Tax Rate Projections 2021-2025 N:\\Public Bodies\\Agenda Packets\\09-08-2020\\Final\\x10.5 sr 2021 Budget.docx 2018 2019 2020 2021 % of % ACTUAL ACTUAL BUDGET PRELIMINARY Budget Change General Fund Revenues: Property taxes $10,508,700 $11,171,848 $11,938,300 $12,522,100 71.1%4.9% Other taxes 137,532 158,232 140,000 150,000 0.9%7.1% Licenses & Permits 790,831 822,899 798,500 778,500 4.4%-2.5% Intergovernmental Revenues 578,324 607,320 611,500 602,500 3.4%-1.5% Charges for Services 930,293 923,063 947,500 908,500 5.2%-4.1% Fines 137,114 134,493 140,000 120,000 0.7%-14.3% Other Revenues 273,799 495,889 276,500 236,500 1.3%-14.5% Transfers In 2,058,735 1,922,657 2,167,300 2,281,500 13.0%5.3% Total General Fund Revenues 15,415,328 16,236,401 17,019,600 17,599,600 100.0%3.4% General Fund Expenditures General Government: Mayor & Council 149,224 142,390 163,050 174,700 1.0%7.1% Communications 253,786 274,801 328,950 336,000 1.9%2.1% Administrative Services 490,436 540,930 568,850 595,650 3.4%4.7% Human Resources 255,559 281,080 305,800 355,750 2.0%16.3% Elections 37,614 6,300 83,200 6,800 0.0%-91.8% Finance 605,933 632,392 648,700 655,800 3.7%1.1% Information Technology 364,601 419,605 556,300 530,700 3.0%-4.6% Legal 273,462 315,866 240,000 255,000 1.4%6.3% Community Development 159,737 162,854 206,650 209,500 1.2%1.4% Planning 344,685 332,691 352,350 364,150 2.1%3.3% Building Maintenance 670,808 711,842 767,750 788,500 4.5%2.7% Energy City 29,992 29,573 27,550 33,900 0.2%23.0% Total General Government 3,635,837 3,850,324 4,249,150 4,306,450 24.5%1.3% Public Safety: Police 5,462,953 5,647,822 6,186,750 6,459,600 36.7%4.4% Fire 1,136,830 1,289,696 1,398,600 1,466,600 8.3%4.9% Building Safety 672,567 514,626 527,550 544,550 3.1%3.2% Code Enforcement 95,493 91,458 99,450 86,300 0.5%-13.2% Environmental 42,443 32,477 53,150 58,300 0.3%9.7% Total Public Safety 7,410,286 7,576,079 8,265,500 8,615,350 49.0%4.2% Public Works: Street Maintenance 1,213,910 1,323,279 1,386,700 1,462,850 8.3%5.5% Snow Removal 279,936 334,574 305,900 345,800 2.0%13.0% Equipment Services 208,273 232,155 231,200 254,050 1.4%9.9% Engineering 206,926 330,734 385,500 492,800 2.8%27.8% Total Public Works 1,909,045 2,220,742 2,309,300 2,555,500 14.5%10.7% Culture & Recreation: Parks Maintenance 1,130,649 1,152,105 1,272,700 1,307,700 7.4%2.8% Recreation 739,982 808,606 721,100 685,300 3.9%-5.0% Sr. Citizen Programs 227,153 203,479 201,850 129,300 0.7%-35.9% Total Culture & Recreation 2,097,784 2,164,190 2,195,650 2,122,300 12.1%-3.3% Transfers Out - 237,813 - - 0.0%0.00% Total General Fund Expenditures $15,052,952 $16,049,148 $17,019,600 $17,599,600 100.0%3.4% CITY OF ELK RIVER GENERAL FUND BUDGET City of Elk River Levied Levied Preliminary Tax Levy Pay 2019 Pay 2020 Pay 2021 General Fund $11,187,400 $11,938,300 $12,522,100 Library 66,000 69,000 71,500 General Property Tax Levy 11,253,400 12,007,300 12,593,600 Special Levies: 2010A GO Public Safety Building Bonds 470,130 619,920 618,870 2012A GO Public Works Building Bonds - - ???? $460,610 debt levy Economic Development Tax Abatement 160,235 138,550 98,450 Government Building Reserve 55,000 - ???? Lake Orono Dredging - 100,000 - Total Levy $11,938,765 $12,865,770 $13,310,920 General Fund Change from Previous Year $689,600 $750,900 $583,800 Percentage Change from Previous Year 6.6%6.7%4.9% Total Dollar Change from Previous Year $874,935 $927,005 $445,150 % Change 7.9%7.8%3.5% NTC Value $26,006,616 $27,823,086 $29,773,925 Estimate per county Tax Rate 45.907%46.241%44.707% % Increase in NTC 8.2%7.0%7.0% Tax Rate 46.00% Additional Levy $385,090 2021 PRELIMINARY TAX LEVY Human Included in Resources Recreation GENERAL Position:HR Assistant Rec. Coord.FUND 4101 Regular Pay - 13,450 13,450 4103 Part-Time Pay 23,500 - 23,500 4104 PERA 1,750 1,000 2,750 4105 FICA 1,450 850 2,300 4107 Medicare 350 200 550 4108 Insurance - 4,250 4,250 4109 Workers Comp 100 50 150 Total Personal Services 27,150 19,800 46,950 Additional Costs: 4219 Computer/phone 2,000 2,000 Total Additional Costs 2,000 2,000 Total New Position Requests 29,150 19,800 48,950 Start Date:2/1/2021 2021 BUDGET REQUESTED POSITIONS Department: Page 1 City of Elk River Human Resources Assistant Position Description Department: Administration/Human Resources Immediate Supervisor: Human Resources Manager Pay Grade: 5N FLSA Status: Non-Exempt Last Updated: (date) 9/2020 Positions Supervised: N/A Position Summary The Human Resources Assistant provides confidential administrative and clerical support to the Human Resources Division. Essential Functions 1. Assists with the administrative functions of the division. A. Assists with compliance with records retention schedules and law. Organizes and manages files and filing system. B. Scans documents into the HRIS system. C. Ensures all legally required documents are posted on employee bulletin boards. D. Leads Health Rewards Program Committee planning and development of annual health and wellness training and events. E. Schedules employees for annual hearing screening and required human resources training. F. Assists in organizing staff training by arranging for equipment and preparing materials. G. Prepares and submits job ads. H. Assists with annual Open Enrollment including preparing materials, testing sessions, and reviewing enrollments for changes and completeness. I. Completes Verification of Employment requests and salary surveys. J. Composes employee communications including letters, memos, emails, intranet postings, posters, etc. 2. Performs other essential job duties. A. Regular and timely work attendance. B. Follows all safety procedures. C. Participates in safety training. Required Knowledge, Skills, and Abilities  Knowledge of standard office practices, procedures, and equipment.  Skill in the use of Microsoft Office applications, especially Outlook, Word, and Excel.  Skill in organizing work, prioritizing, and multi-tasking to effectively meet deadlines.  Ability to maintain confidential and sensitive information. Handles confidential information appropriately.  Ability to analyze information. HR Assistant Page 2  Ability to learn and effectively utilize the city’s Human Resource Information System.  Ability to establish and maintain effective working relationships with all city staff.  Ability to handle inquiries in a friendly, courteous, and professional manner.  Ability to communicate clearly, both orally and in writing.  Ability to read, write, and understand correspondence, memoranda, and directives. Minimum Qualifications  High school diploma or the equivalent.  One year of related work experience.  Valid driver’s license and good driving record. Preferred Qualifications  Experience in human resources, particularly public sector human resources.  Experience with Minnesota Government Data Practices Act and data retention law.  Experience utilizing UltiPro HRIS. This Position Description is not intended to be all-inclusive. It is within the City of Elk River’s discretion to assign additional duties and responsibilities or remove duties and responsibilities at any time. This Position Description does not constitute a Contract of Employment. Page 1 City of Elk River Human Resources Technician Position Description Department: Administration/Human Resources Immediate Supervisor: Human Resources RepresentativeManager Pay Grade: 4N FLSA Status: Non-Exempt Last Updated: (date) 1/20179/2020 Positions Supervised: N/A Position Summary The Human Resources Technician provides confidential administrative, technical, and clerical support to the Human Resources Division. Essential Functions 1. Assists with the administrative functions of the division. A. Ensures compliance with records retention schedules and law. B. Performs research and related functions as apparent or delegated. C. Conducts and completes surveys and requested employment verifications. D.C. Maintains computerized and paper confidential files. E. Ensures all legally required documents are posted on employee bulletin boards. F. Records COBRA payments and requests monthly premium checks. G.D. Schedules appointments for the city’s CDL controlled substance and alcohol random testing program. Annually verifies status of all CDL driver’s licenses. H. Assists in organizing training by arranging for equipment and preparing materials. I.E. Composes employee communications including letters, memos, emails, intranet postings, posters, etc. J.F. Assists with administration and compliance of personnel policies, union contracts, and employment law. K.G. Manages ID Badge system and creates ID Badges for city and Elk River Municipal Utilities employees. 2. Assists with recruitment and staffing activities. A. Coordinates the preparation, review, and revision of position descriptions. B. Coordinates selection processes with department manager. C. Prepares and submits job ads. D. Prepares application and scoring materials. E. Scores completed applications. F.A. Prepares and sends correspondence to applicants. B. Schedules interviews. G.C. Assists in corresponding with candidates and moving candidates through the HRIS Recruitment system. H.D. Manages Onboarding process. 3. Assists with the administration of benefit and retirement plans. A. Assists with plan selection and administration. B. Prepares and assembles open enrollment materials and HRIS setup. C. Schedules open enrollment employee information sessions. D. Assists employees with benefit questions and concerns. HR Technician Page 2 E. Works with benefit providers on enrollment changes and corrections. F. Corresponds with employees and providers regarding mid-year benefit changes and enrollments. G. Prepares spreadsheets for payroll balancing of costs and deductions. Coordinates with payroll concerning insurance-related enrollments, changes, and terminations. G.H. Reconciles monthly insurance bills, corrects discrepancies, and makes ensures timely payments to vendors. H.I. Assists with management of benefit continuation programs for terminating or retiring employees.Legally manages the benefits continuation programs for terminating or retiring employees including notices, enrollments, payments, and terminations. J. Maintains Dependent Care and Medical ReimbursementHealth Flexible Spending Arrangements accounts and authorizes requests for payment. I.K. Monitors, prepares, and files reports in accordance with the Patient Protection and Affordable Care Act. J. Leads Health Rewards Program Committee planning and development of annual health and wellness training and events. K.L. Leads Employee Recognition Committee planning for annual employee event. L.M. Member of the Safety Committee. 4. Performs other essential job duties. A. Regular and timely work attendance. B. Follows all safety procedures. C. Participates in safety training. Required Knowledge, Skills, and Abilities  Knowledge of human resource functions and customer service.  Knowledge of standard office practices, procedures, and equipment.  Skill in the use of Microsoft Office applications, especially Outlook, Word, and Excel.  Skill in organizing work, prioritizing, and multi-tasking to effectively meet deadlines.  Ability to maintain confidential and sensitive information. Handles confidential information appropriately.  Ability to analyze moderately complex information and process and prepare accurate reports and correspondence.  Ability to learn and effectively utilize the city’s Human Resource Information System.  Ability to establish and maintain effective working relationships with all city staff, vendors, and the public.  Ability to handle inquiries in a friendly, courteous, and professional manner.  Ability to communicate clearly, both orally and in writing.  Ability to read, write, and understand correspondence, memoranda, and directives. Minimum Qualifications  High school diploma or the equivalent.  Two years of related work experience in a responsible administrative support position.  Valid driver’s license and good driving record. Preferred Qualifications  Experience in human resources, particularly public sector human resources.  Experience with Minnesota Government Data Practices Act and data retention law.  Experience utilizing UltiPro HRIS. HR Technician Page 3 This Position Description is not intended to be all-inclusive. It is within the City of Elk River’s discretion to assign additional duties and responsibilities or remove duties and responsibilities at any time. This Position Description does not constitute a Contract of Employment. Page 1 City of Elk River Human Resources Manager Position Description Department: Administration Immediate Supervisor: City Administrator Pay Grade: 4E FLSA Status: Exempt Last Updated: (date) 7/20189/2020 Positions Supervised: Human Resources Technician Position Summary The Human Resources Manager performs a variety of complex administrative, technical, professional, and confidential personnel functions of the city. Essential Functions 1. Maintains compliance with city, state, and federal laws, rules, regulations, and policies. A. Writes, administers, and manages personnel policies and union contracts. Represents administration for union negotiations. B. Develops and maintains compensation and benefits programs that comply with the city’s labor contracts, Minnesota Pay Equity Act, and all related laws. C. Oversees the aAdministioners of the city’s controlled substance and alcohol testing programs. Manages including positive testing procedures and follow-up. D. AssuresEnsures compliance with employment laws including, but not limited to, FLSA, FMLA, Minnesota Parental Leave, COBRA, Minnesota Continuation, and HIPAA, ACA, Wage Theft Prevention, and FMCSA CDL data. Submits injury reports, corresponds with TPA, and maintains OSHA records. Responds to, tracks, and prepares payment for unemployment claims. 2. Represents the city in labor relations issues. A. Serves as a resource to managers and directors for personnel-related issues. B. Facilitates the resolution of personnel-related issues. C. Interprets policies, labor contracts, and employment law. D. Maintain continuity with city’s pay structure. E. Attends meetings and workshops to stay at the forefront of human resource practice. 3. Performs human resource division activities. A. Directs the workload of the human resources division. B. Trains, develops, and motivates staff. C. Evaluates employee performance on a formal and informal basis and creates job performance improvement plans as appropriate and in a timely manner. Performs timely annual performance reviews. D. Develops and implements operational procedures and policies to improve efficiency and effectiveness. Page 2 x10.5 Human Resources Manager - update.docx E. Prepares and manages division budget. 4. Prepares and maintains internal and external personnel data. A. Maintains integrity of HRIS system and ensures it is being utilized to capacity. B. Conducts and completes salary surveys. C. Maintains personnel and confidential files. D. Coordinates, oversees, and evaluates the preparation, review and revision of position descriptions. E. Prepares Pay Equity report. F. Tracks probationary periods, anniversary dates, leaves, and other pertinent data. G. Ensures completion of annual performance reviews. 5. Reviews and administers benefits. A. Works with insurance brokers to select and administer plans. B. Ensures the employee benefits programs meet legal requirements. C. Researches, develops, and writes policies and plan designs relating to benefits. Presents information and benefit design proposals to City Council in written and oral form. D. Legally manages the benefits continuation programs for terminating or retiring employees. D. Oversees annual open enrollment and assists with setup and reviewing information. E. Coordinates leaves of absences including preparing required documentation and tracking time off. 6. Performs recruitment and selection activities. A. Gains input from directors and managers and coordinates a process to find qualified candidates suited to position openings. B. Prepares online application and scoring criteria. C. Reviews completed applications. D. Assembles and serves on interview panels. Assists in selecting top candidate. E. Evaluates criminal and driver’s license background information and reference checks. F. Schedules pre-employment drug and assessment testing. G. Confers with potential employee and makes hiring offer. H. Prepares recommendation to the City Council. I. Corresponds with applicants not selected.candidates and moves candidates through the HRIS Recruitment system. I.J. Conducts exit interviews. 7. Arranges training for city employees. A. Evaluates mandatory human resource training needs to assure requirements are met. B. Arranges training sessions including scheduling trainer or training method and, reserving meeting space. Informs Human Resources Assistant of scheduling, arranging for equipment and , and preparing materials needs. 8. Performs other essential job duties. A. Regular and timely work attendance. B. Follows all safety procedures. C. Participates in safety training. Page 3 x10.5 Human Resources Manager - update.docx Required Knowledge, Skills, and Abilities  Knowledge of state and federal employment laws.  Knowledge of employee classification, compensation and benefits, recruitment, selection, training, and labor relations.  Knowledge of Data Practices law as it relates to personnel data.  Knowledge of the utilization of appropriate resources and willingness to initiate use.  Skilled in the use of Microsoft Word, Excel, and Windows.  Ability to be consistent in applying policies.  Ability to maintain confidential and sensitive information. Handles confidential information appropriately.  Ability to establish and maintain effective working relationships with all city staff, vendors, and the public.  Ability to handle inquiries in a friendly, courteous, and professional manner.  Ability to organize and coordinate various assignments and establish priorities to effectively meet deadlines with minimal supervision.  Ability to analyze, study, and present technical information.  Ability to anticipate needs and evaluate alternatives.  Ability to communicate clearly, both verbally and in writing.  Ability to read, write, and understand correspondence, memoranda, and directives. Minimum Qualifications  Bachelor’s degree in human resource management, industrial relations or other closely related field.  Five years of experience in human resource position with progressive responsibilities.  One year of municipal human resource experience.  Three years supervisory experience.  Valid driver’s license. Preferred Qualifications  Public Human Resource Certificate.  Education beyond Bachelor’s degree. This Position Description is not intended to be all-inclusive. It is within the City of Elk River’s discretion to assign additional duties and responsibilities or remove duties and responsibilities at any time. This Position Description does not constitute a Contract of Employment. 2021 CAPITAL OUTLAY Requested General Capital Department Item Amount Fund Reserve Information Tech.IT infrastructure replacement 100,000 100,000 Emergency Management Civil defense siren 40,000 40,000 Equipment Services Vehicle Diagnostic Scanner 13,000 13,000 General Fund Departments 153,000$ 53,000$ 100,000$ Library Furniture/shelving 10,000 Multipurpose Facility Floor scrubber 15,000 Water softener 22,000 Wastewater Solids analyzer 13,000 Fox Haven lift station panel 40,000 Vaughn chopper pump 22,000 Liquor Stores Westbound monument sign 20,000 Total Other Funds 142,000$ Funding Source 2021 2022 2023 2024 2025 Budget Projected Projected Projected Projected Revenues: Property Taxes 12,522,100$ 13,206,250$ 13,540,500$ 13,989,300$ 14,451,700$ Other Taxes 150,000 150,700 151,500 152,300 153,100 Licenses & Permits 778,500 786,300 794,200 802,100 810,100 Intergovernmental Revenues 602,500 605,500 608,500 611,500 614,600 Charges for Services 908,500 917,600 926,800 936,100 945,500 Fines 120,000 121,200 122,400 123,600 124,800 Other Revenues 236,500 238,900 241,300 243,700 246,100 Total Revenues 15,318,100 16,026,450 16,385,200 16,858,600 17,345,900 Expenditures: General Government 4,306,450 4,424,700 4,546,300 4,671,300 4,799,800 Public Safety 8,615,350 8,819,000 9,069,700 9,327,550 9,592,900 Public Works 2,555,500 2,610,200 2,679,800 2,751,300 2,824,800 Culture & Recreation 2,122,300 2,179,250 2,237,800 2,298,000 2,359,800 Total Expenditures 17,599,600 18,033,150 18,533,600 19,048,150 19,577,300 Excess (deficit) of revenues over expenditures (2,281,500) (2,006,700) (2,148,400) (2,189,550) (2,231,400) Other financing sources (uses) Transfers In 2,281,500 2,327,100 2,373,600 2,421,100 2,469,500 Transfers out - - - - - Total other financing sources (uses)2,281,500 2,327,100 2,373,600 2,421,100 2,469,500 Change in fund balance - 320,400 225,200 231,550 238,100 Fund balance January 1 7,794,530 7,794,530 8,114,930 8,340,130 8,571,680 Fund balance December 31 7,794,530$ 8,114,930$ 8,340,130$ 8,571,680$ 8,809,780$ Fund balance % of expenditures 44.3%45.0%45.0%45.0%45.0% General Fund Projections 2021-2025 Items impacting the forecasts include: • Conservative growth trends, inflation, and other factors • Current financial position (maintain 45% General Fund balance) • Existing debt – public safety and public works facilities • Sinking fund reserves not included $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 $22,000,000 2021 2022 2023 2024 2025 General Fund Projections 2021-2025 Revenues Expenditures Fund Balance 46.00%46.01% 42.79% 41.84% 40.92% 38.00% 39.00% 40.00% 41.00% 42.00% 43.00% 44.00% 45.00% 46.00% 47.00% 2021 2022 2023 2024 2025 Tax Rate Projections 2021-2025