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10.3. SR 11-02-2020 Request for Action To Item Number Mayor and City Council 10.3 Agenda Section Meeting Date Prepared by Work Session November 2, 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 Staff will review the Furniture and Things Community Event Center goals/budget with Council and present the proposed tax levy and General Fund budget for 2021. On September 21, Council approved a maximum levy of $13,510,920, which is an increase of 5% over the 2020 levy. Staff has reviewed and made General Fund adjustments of $207,100 to bring the levy to $13,303,820, which is a 3.4% levy increase over 2020. Pending any property value adjustments by the county, the projected tax rate is 45.165 compared to 46.241 in 2020. The General Fund budget is reduced from $17,599,600 to $17,532,500, which is a 3% increase over 2020. Financial Impact N/A Mission/Policy/Goal The city’s mission is to grow responsibly and be good stewards for every dollar. Attachments  Multipurpose Facility Goals/Budget  Tax Levy  General Fund Summary  Projected Tax Impact 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 Division: Completed by: Performance Measure 2019 Actual 2020 Estimated 2021 Projected Ice Hours Sold 3,550 3,025 3,700 Turf Hours Utilized 200 1,000 Meeting Room Hours Utilized 150 2,000 Division Performance Measures & Goals for 2021 Multipurpose Facility Rich Czech/Tim Dalton Division Goal Goal Objective/Task Schedule meetings with building staff, Zamboni drivers and concession staff to ensure a strong team culture. During these times it will be important that staff understands what they are responsible for customer satisfaction, keeping the ice, turf and meeting rooms on schedule, sharpening skates, overall cleanliness of building and other customer services items. Maintain support and expertise to ensure team members have the correct tools to achieve quality outcomes. Maintain tools and purchase equipment to operate efficiently to keep the facility clean and safe. Market the facility as a place of destination Work with staff to develop advertisement that enhances the features of the new facility. Increase funding of the facility through various methods Identify specific programs and revenue streams to increase participation and customer base of the facility. Develop Culture of Service and Excellence Hire, train and mentor staff that believe in and practice our mission Keep informed of COVID-19 Keep up with the state mandates of operating the facility to keep our customers safe. Procure AV presentation equipment to provide quality AV services for all meeting areas in the facility Develop plan to outfit building with IT & Cable Commission Dept:Multipurpose Facility - Special Revenue Fund Acct.2017 2018 2019 2020 2021 No.Actual Actual Actual BUDGET BUDGET Comments: REVENUES: 3461 Recreation Fees 80,588 87,436 80,462 75,000 93,000 3464 Ice Rental 554,714 545,551 426,961 430,000 643,000 3465 Admissions 30,820 29,638 27,655 25,700 33,000 3466 Dry Floor Events 16,325 13,114 161 7,000 20,000 3467 Concessions 82,740 86,336 62,700 51,000 120,000 3468 Skate Sharpening 3,355 3,090 2,503 2,500 3,200 3475 Leased Spaces - 7,600 1,267 - 780,850 3482 Advertising Fee 29,420 23,925 25,804 - 35,000 3621 Interest Income 10,355 11,670 12,583 6,000 6,000 3622 Vending Machines 15,411 13,635 9,921 9,500 19,300 3626 Contributions - Bleachers 6,040 5,458 2,927 5,500 - 3629 Misc. Merchandise Sales 3,312 3,436 7,973 2,000 3,800 3791 ATM Revenue 170 138 - 100 - TOTAL ICE ARENA REVENUES 833,250 831,027 660,917 614,300 1,757,150 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 189,046 200,557 205,294 299,600 378,500 4103 Part Time Pay 101,767 111,207 99,120 92,500 200,000 4104 PERA 20,114 20,374 19,291 27,500 40,000 4105 FICA 17,578 18,981 18,516 24,400 35,650 4107 Medicare 4,113 4,440 4,330 5,650 8,450 4108 Insurance 30,450 33,162 32,997 49,750 53,900 4109 Workers Comp 4,301 5,100 5,051 6,250 7,200 4110 Unemployment Compensation 1,603 - 9 - - TOTAL PERSONAL SERVICES 368,972 393,821 384,608 505,650 723,700 SUPPLIES 4212 Fuels & Lubes 1,445 254 175 350 350 4217 Uniform Allowance 515 999 390 550 750 4219 Operating Supplies 95,703 111,426 56,066 59,950 94,050 4255 Soft Drinks/Misc.6,777 5,432 3,835 4,000 - 4259 Merchandise For Resale 33,242 37,744 30,731 21,800 49,250 TOTAL SUPPLIES 137,682 155,855 91,197 86,650 144,400 OTHER SERVICES & CHARGES 4319 Other Professional Services 11,698 - - - 18,000 4321 Telephone 2,662 1,650 974 1,750 1,750 4322 Postage 120 85 78 - 100 4331 Conferences/Schools 1,044 135 - 1,700 7,100 4359 Publishing 6,386 4,896 619 4,250 6,400 4361 Insurance 4,045 3,482 3,492 4,200 8,200 4389 Utilities 151,108 164,671 152,882 122,700 255,000 4401 Building/Equipment Repair & Maint.29,906 55,724 27,535 21,650 16,150 4409 Contractual Services 6,007 9,652 9,846 12,950 9,800 4415 Equipment rental 2,735 4,002 2,718 3,500 3,500 4433 Dues/Subscriptions 270 295 320 400 400 4438 Credit card fees 4,821 4,750 5,010 4,800 5,400 TOTAL OTHER SERVICES & CHARGES 220,802 249,342 203,474 177,900 331,800 CAPITAL OUTLAY 4520 Buildings & Structures 49,000 4560 Equipment 10,434 73,000 TOTAL CAPITAL OUTLAY - - 10,434 - 122,000 4721 TRANSFER - General Fund 140,000 TOTAL ICE ARENA EXPENDITURES 727,456 799,018 689,713 770,200 1,461,900 NET CHANGE IN FUND BALANCE 105,794 32,009 (28,796) (155,900) 295,250 ^^^^^ 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services Dept:Multipurpose Facility Acct.2017 2018 2019 No.Actual Actual Actual BUDGET BUDGET Comments: REVENUES: 3464 Ice Rental 554,714 545,551 426,961 430,000 643,000 3465 Admissions 27,837 26,189 24,963 25,700 30,000 3466 Dry Floor Events 16,325 13,114 161 7,000 20,000 3468 Skate Sharpening 3,355 3,090 2,503 2,500 3,200 3475 Facility Rentals - - 7,600 1,267 - - Field House 305,500 Meeting/Party Rooms 475,350 3482 Rinkside/Zam Advertising Fee 29,420 23,925 25,804 - 35,000 3621 Interest Income 10,355 11,670 12,583 6,000 6,000 3622 Vending Machines 15,411 13,635 9,921 9,500 19,300 3626 Contributions - Bleachers 6,040 5,458 2,927 5,500 - 3629 Misc. Merchandise Sales 3,026 3,303 7,973 2,000 3,800 3791 ATM Revenue 170 138 - 100 - TOTAL ICE ARENA REVENUES 666,653 653,673 515,063 488,300 1,541,150 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 189,046 200,557 205,294 299,600 378,500 4103 Part Time Pay 74,379 76,617 70,304 67,500 155,000 4104 PERA 20,101 20,374 19,291 27,500 40,000 4105 FICA 15,877 16,833 16,728 22,800 33,000 4107 Medicare 3,715 3,937 3,915 5,300 7,750 4108 Insurance 30,450 33,162 32,997 49,750 53,900 4109 Workers Comp 4,301 5,100 5,051 6,250 7,200 4110 Unemployment Compensation 1,603 - 9 - - TOTAL PERSONAL SERVICES 339,472 356,580 353,589 478,700 675,350 SUPPLIES 4212 Fuels & Lubes 1,445 254 175 350 350 4217 Uniform Allowance 515 999 390 550 750 4219 Operating Supplies 69,815 88,221 31,753 36,600 67,050 4255 Soft Drinks/Misc.6,777 5,432 3,835 4,000 - 4259 Other Merchandise For Resale 32 1,213 2,385 800 800 TOTAL SUPPLIES 78,584 96,119 38,538 42,300 68,950 OTHER SERVICES & CHARGES 4319 Other Professional Services 11,698 - - - 18,000 4321 Telephone 2,662 1,650 974 1,750 1,750 4322 Postage 120 85 78 - 100 4331 Conferences/Schools 1,044 135 - 1,700 7,100 4359 Publishing 5,929 4,896 619 2,950 5,050 4361 Insurance 4,045 3,482 3,492 4,200 8,200 4389 Utilities 151,108 164,671 152,882 122,700 255,000 4401 Building/Equipment Repair & Maint.29,906 55,724 27,535 21,650 16,150 4409 Contractual Services 1,987 3,377 5,036 6,650 2,750 4415 Equipment rental 2,735 4,002 2,718 3,500 3,500 4433 Dues/Subscriptions 270 295 320 400 400 TOTAL OTHER SERVICES & CHARGES 211,504 238,317 193,654 165,500 318,000 CAPITAL OUTLAY 4520 Buildings & Structures 49,000 APEX Building Improvements - Energy 35,000 Lawn Sprinker System 14,000 2020 2021 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services Dept:Multipurpose Facility Acct.2017 2018 2019 No.Actual Actual Actual BUDGET BUDGET Comments: 2020 2021Explanation/Detail of Supplies or Services 4560 Equipment 10,434 73,000 AV Equipment- meeting rooms 20,000 Sound Attenuation - Locker rooms 18,000 Mower/Blower 13,000 22,000 TOTAL CAPITAL OUTLAY - - 10,434 - 122,000 4721 TRANSFER - General Fund (Admin. services)140,000 TOTAL ICE ARENA EXPENDITURES 629,560 691,016 596,215 686,500 1,324,300 REVENUES OVER/(UNDER) EXPENDITURES 37,093 (37,343) (81,152) (198,200) 216,850 Water softener Dept:Hockey Program Acct.2017 2018 2019 No.Actual Actual Actual BUDGET BUDGET Comments: REVENUES: 3461 Recreation Fees 50,316 60,773 56,079 47,000 61,000 TOTAL REVENUES 50,316 60,773 56,079 47,000 61,000 EXPENDITURES: SUPPLIES 4219 Operating Supplies 15,015 16,648 18,943 19,200 20,000 TOTAL SUPPLIES 15,015 16,648 18,943 19,200 20,000 OTHER SERVICES & CHARGES 4359 Publishing - - - 600 650 4409 Contractual Services 3,670 5,468 4,810 4,800 5,500 4438 Credit card fees 3,469 3,827 4,093 3,800 4,000 TOTAL OTHER SERVICES & CHARGES 7,139 9,295 8,903 9,200 10,150 TOTAL EXPENDITURES - HOCKEY 22,154 25,943 27,846 28,400 30,150 REVENUES OVER/(UNDER) EXPENDITURES 28,162 34,830 28,233 18,600 30,850 2020 2021 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services Dept:Skating Program Acct.2017 2018 2019 No.Actual Actual Actual BUDGET BUDGET Comments: REVENUES: 3461 Recreation Fees 30,272 26,663 24,383 28,000 32,000 3465 Admissions - Skate show 2,983 3,449 2,692 3,000 3629 Miscellaneous 286 133 - - - TOTAL REVENUES 33,541 30,245 27,075 28,000 35,000 EXPENDITURES: PERSONAL SERVICES 4103 Part Time Pay 6,972 9,507 7,795 10,000 10,000 4105 FICA 432 589 483 650 650 4107 Medicare 101 138 113 150 150 TOTAL PERSONAL SERVICES 7,505 10,234 8,391 10,800 10,800 SUPPLIES 4219 Operating Supplies 5,172 5,874 4,686 2,750 5,500 TOTAL SUPPLIES 5,172 5,874 4,686 2,750 5,500 OTHER SERVICES & CHARGES 4359 Publishing 457 - - 700 700 4409 Contractual Services 350 807 - 1,500 1,550 4438 Credit card fees 1,352 923 917 1,000 1,400 TOTAL OTHER SERVICES & CHARGES 2,159 1,730 917 3,200 3,650 TOTAL EXPENDITURES - SKATING 14,836 17,838 13,994 16,750 19,950 REVENUES OVER/(UNDER) EXPENDITURES 18,705 12,407 13,081 11,250 15,050 2020 2021 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services Dept:Concessions Acct.2017 2018 2019 No.Actual Actual Actual BUDGET BUDGET Comments: REVENUES: 3467 Concessions 82,740 86,336 62,700 51,000 120,000 TOTAL REVENUES 82,740 86,336 62,700 51,000 120,000 EXPENDITURES: PERSONAL SERVICES 4103 Part Time Pay 20,416 25,083 21,021 15,000 35,000 4104 PERA 13 - - - - 4105 FICA 1,269 1,559 1,305 950 2,200 4107 Medicare 297 365 302 200 500 TOTAL PERSONAL SERVICES 21,995 27,007 22,628 16,150 37,700 SUPPLIES 4219 Operating Supplies 5,701 683 684 1,400 1,500 4259 Other Merchandise For Resale 33,210 36,531 28,346 21,000 48,450 TOTAL SUPPLIES 38,911 37,214 29,030 22,400 49,950 TOTAL EXPENDITURES - CONCESSIONS 60,906 64,221 51,658 38,550 87,650 REVENUES OVER/(UNDER) EXPENDITURES 21,834 22,115 11,042 12,450 32,350 2020 2021 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services City of Elk River Levied Preliminary Proposed Tax Levy Pay 2020 Pay 2021 Pay 2021 General Fund $11,938,300 $12,522,100 $12,315,000 Library 69,000 71,500 71,500 General Property Tax Levy 12,007,300 $12,593,600 12,386,500 Special Levies: 2010A GO Public Safety Building Bonds 619,920 618,870 618,870 2012A GO Public Works Building Bonds - 200,000 200,000 Economic Development Tax Abatement 138,550 98,450 98,450 Government Building Reserve - - - Lake Orono Dredging 100,000 - - Total Levy $12,865,770 $13,510,920 $13,303,820 General Fund Change from Previous Year $750,900 $583,800 $376,700 Percentage Change from Previous Year 6.7%4.9%3.2% Total Dollar Change from Previous Year $927,005 $645,150 $438,050 % Change 7.8%5.0%3.4% NTC Value $27,823,086 $29,456,247 $29,456,247 Tax Rate 46.241%45.868%45.165% % Increase in NTC 7.0%5.9%5.9% Levy Reduction Revenues: Transfer - Multipurpose Facility $140,000 Expenditures: Personal Services - IT - Phased retirement (38,400) Various - new hire savings (22,200) Supplies - computers (6,500) Total ($207,100) 2021 PROPOSED TAX LEVY 2019 2020 2021 2021 % ACTUAL BUDGET PRELIMINARY PROPOSED Change General Fund Revenues: Property taxes $11,171,848 $11,938,300 $12,522,100 $12,315,000 3.2% Other taxes 158,232 140,000 150,000 150,000 7.1% Licenses & Permits 822,899 798,500 778,500 778,500 -2.5% Intergovernmental Revenues 607,320 611,500 602,500 602,500 -1.5% Charges for Services 923,063 947,500 908,500 908,500 -4.1% Fines 134,493 140,000 120,000 120,000 -14.3% Other Revenues 495,889 276,500 236,500 236,500 -14.5% Transfers In 1,922,657 2,167,300 2,281,500 2,421,500 11.7% Total General Fund Revenues 16,236,401 17,019,600 17,599,600 17,532,500 3.0% General Fund Expenditures General Government: Mayor & Council 142,390 163,050 174,700 173,200 6.2% Communications 274,801 328,950 336,000 336,000 2.1% Administrative Services 540,930 568,850 595,650 593,150 4.3% Human Resources 281,080 305,800 355,750 355,750 16.3% Elections 6,300 83,200 6,800 6,800 -91.8% Finance 632,392 648,700 655,800 655,800 1.1% Information Technology 419,605 556,300 530,700 489,800 -12.0% Legal 315,866 240,000 255,000 255,000 6.3% Community Development 162,854 206,650 209,500 209,500 1.4% Planning 332,691 352,350 364,150 364,150 3.3% Building Maintenance 711,842 767,750 788,500 788,500 2.7% Energy City 29,573 27,550 33,900 33,900 23.0% Total General Government 3,850,324 4,249,150 4,306,450 4,261,550 0.3% Public Safety: Police 5,647,822 6,186,750 6,459,600 6,450,100 4.3% Fire 1,289,696 1,398,600 1,466,600 1,466,600 4.9% Building Safety 514,626 527,550 544,550 531,850 0.8% Code Enforcement 91,458 99,450 86,300 86,300 -13.2% Environmental 32,477 53,150 58,300 58,300 9.7% Total Public Safety 7,576,079 8,265,500 8,615,350 8,593,150 4.0% Public Works: Street Maintenance 1,323,279 1,386,700 1,462,850 1,462,850 5.5% Snow Removal 334,574 305,900 345,800 345,800 13.0% Equipment Services 232,155 231,200 254,050 254,050 9.9% Engineering 330,734 385,500 492,800 492,800 27.8% Total Public Works 2,220,742 2,309,300 2,555,500 2,555,500 10.7% Culture & Recreation: Parks Maintenance 1,152,105 1,272,700 1,307,700 1,307,700 2.8% Recreation 787,334 721,100 685,300 685,300 -5.0% Sr. Citizen Programs 203,479 201,850 129,300 129,300 -35.9% Total Culture & Recreation 2,142,918 2,195,650 2,122,300 2,122,300 -3.3% Transfers Out 237,813 - - - 0.00% Total General Fund Expenditures $16,027,876 $17,019,600 $17,599,600 $17,532,500 3.0% CITY OF ELK RIVER GENERAL FUND BUDGET Residential (Homestead): With Valuation Change Impact Tax Capacity Rate Value 46.241%45.165%Dollar Percent 2020 2021 Change 2020 2021 2020 2021 change change $192,900 $210,700 9.2%$1,730 $1,924 $800 $869 $69 8.6% $223,600 $240,600 7.6%$2,065 $2,250 $955 $1,016 $61 6.4% $305,900 $324,200 6.0%$2,962 $3,161 $1,370 $1,428 $58 4.2% $350,100 $348,900 -0.3%$3,444 $3,431 $1,592 $1,549 ($43)-2.7% $270,100 $285,000 5.5%$2,572 $2,734 $1,189 $1,235 $46 3.9% $407,800 $417,400 2.4%$4,073 $4,174 $1,883 $1,885 $2 0.1% ** $241,200 $280,200 16.2%$2,257 $2,682 $1,044 $1,211 $167 16.0% $200,000 $200,000 0.0%$1,808 $1,808 $836 $816 ($20)-2.4% ** Median Value Home Commercial/Industrial: Tax Capacity Rate Value 46.241%45.165%Dollar Percent 2020 2021 Change 2020 2021 2020 2021 change change $4,505,300 $4,591,600 1.9%$89,356 $91,082 $41,319 $41,137 ($182)-0.4% $3,904,800 $3,945,700 1.0%$77,346 $78,164 $35,766 $35,303 ($463)-1.3% $1,617,000 $1,646,100 1.8%$31,590 $32,172 $14,608 $14,530 ($78)-0.5% $2,575,300 $2,701,900 4.9%$50,756 $53,288 $23,470 $24,067 $597 2.5% $2,000,000 $2,000,000 0.0%$39,250 $39,250 $18,150 $17,727 ($423)-2.3% Tax Capacity Value Estimated City Tax Estimated Property Value Property Value Estimated City Tax Estimated Tax Capacity Value CITY OF ELK RIVER ESTIMATED TAX IMPACT