101122 CAC Agenda PacketCitizen Advisory Commission Meeting
City Hall, 4401 Xylon Avenue North
October 11, 2022
7 p.m.
1. Call to Order.
2. Roll Call.
3. Approval of July 12, 2022 minutes.
4. 2023 Budget Update with Tim Hoyt, Acting City Manager and Vicki
Holthaus, Abdo Financial Solutions.
5. Discuss December agenda and 2023 topics.
6. Discuss 2022-23 Snowman/Snow Sculpture Contest.
7. Brainstorming — Ideas to bring attention to New Hope.
8. Parks and Recreation project updates.
9. Other business.
10. Adjournment.
If you are unable to attend the meeting, please contact Susan Rader at 763-531-5152 or sraderCnewhopemn.gov
Citizen Advisory Commission
Regular Meeting
CALL TO ORDER
ROLL CALL
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
July 12, 2022
New Hope City Hall, 7 p.m.
Chair Kulzer called the meeting to order at 7 p.m.
Present: Commissioners Jeff Harper, Jill Kaufman, Scott Kulzer, Carrie
Neuburger, Rick Riley, Bill Wills
Absent: Commissioner Randy Herman
Staff Present: Susan Rader, Staff Liaison
Bernie Weber, Director of Public Works
Nick Macklem, Stormwater Specialist/Project Coordinator
APPROVAL OF MINUTES Commissioner Kaufman made a motion to approve the minutes of the June 14,
2022 meeting as written. Commissioner Neuburger seconded the motion.
Voting in favor: Commissioners Harper, Kaufman, Kulzer, Neuburger, Riley,
Wills. Opposed: None. Absent: Commissioner Herman. Motion carried.
PUBLIC WORKS UPDATE Bernie Weber, Public Works Director introduced himself and Nick Macklem,
Stormwater Specialist/Project Coordinator.
Mr. Macklem conducted a PowerPoint presentation. He began by discussing
infrastructure projects and noted that the 2021 infrastructure improvement
project in the Lions Park neighborhood had been largely completed with good
results.
Mr. Macklem informed the commissioners that the 2022 infrastructure
improvement project was well underway in the Liberty Park neighborhood.
He explained that the project would include street reclaim and overlay on
Independence Avenue, as well as mill and overlay on Hillsboro, Gettysburg,
59th, and 60th avenues. He added that water main improvements would take
place on the north side of Bass Lake Road at the entrance ramp to Highway
169 and explained that improvements to Independence Avenue would include
water main improvements as well as storm sewer improvements along the
north and south sides of the street.
Mr. Macklem then briefly reviewed the timeline for infrastructure
improvement projects and reported that the 2022 contract had been awarded
to Northwest Asphalt in March. He explained that site preparations had begun
in April, as well as curb repair and spot replacements on mill and overlay
streets. He added that water main improvements along Bass Lake Road had
begun in May along with milling and overlaying of sections of Hillsboro,
Gettysburg and 60th avenues. He also mentioned that water main
improvements and curb repair and installation had occurred along
Independence Avenue in June, and grading and paving of the first asphalt lift
on Independence Avenue had begun in July. Mr. Macklem displayed before -
and -after photos of street projects.
Commissioner Riley thought that property owners were given the opportunity
to connect their drain tile to the city's storm sewer system during full street
reconstruction projects.
Mr. Macklem replied that while that service was still offered during full
reconstruction projects, he noted that it was not an option for properties along
Independence Avenue, as there was no existing drain tile system in the street.
Mr. Macklem then displayed a map of seal coat and fog seal projects for 2022.
He reviewed that streets near Holiday and Sunnyside parks would receive
crack repair, seal coat and fog seal, and the section of Boone Avenue between
42nd Avenue and Bass Lake Road would receive mastic crack repair, crack
repair, seal coat and fog seal. He reported that a section of Nevada Avenue
between 4511~ and 4911, avenues would be crack -filled and explained that the
street bordered the city of Crystal with both cities providing maintenance on
an alternating basis. He added that sections of 60th and Louisiana avenues
would also receive crack filling.
The Meadow Lake drawdown project was then discussed. Mr. Macklem
reviewed that the surface area of the lake was 12 acres with an average depth
of around two feet. He explained that a watershed of approximately 88 acres
fed into the lake and commented that approximately five inches of rain would
cause the lake to flush completely.
Mr. Macklem displayed graphs of the water quality and clarity of Meadow
Lake in years past and noted that the amounts of phosphorus and chlorophyll
had consistently exceeded acceptable levels. He added that water clarity had
also been below ideal standards.
Mr. Macklem reported that the lake had previously been infested with curly -
leaf pondweed, an invasive, non-native plant that can overtake native
vegetation in the spring but dies off during the summer. He displayed past
images of the lake taken during the month of June, in which curly -leaf
pondweed was abundant, and August after it had died off.
Mr. Macklem then displayed a chart of the proposed plan for Meadow Lake,
which had been developed in cooperation with the Shingle Creek Watershed
Management Commission. He stated that this five-year plan had included the
drawdown in year one. Mr. Macklem briefly reviewed the drawdown process
and explained that a pump had been installed in the northwest corner of the
lake last fall which fed into a storm sewer. He noted that while a few inches of
water had remained the lake was able to freeze completely. He reported that
the lake had returned to pre-drawdown levels by the end of March and had
shown good water clarity and the return of some natural vegetation. He then
New Hope Citizen Advisory Commission July 12, 2022
Page 2
discussed the next steps which included water quality monitoring, vegetation
surveys, fishery surveys and sediment surveys.
Commissioner Riley wondered about the turtle population prior to the
drawdown.
Mr. Macklem replied that there had been some impact to turtles due to the
delay in the drawdown process but commented that staff had observed several
turtle sightings beginning this spring.
Chair Kulzer asked about the idea that curly -leaf pondweed would die off
over the winter freeze.
Mr. Macklem replied that ideally the frost level would penetrate deep enough
to kill the turions, a type of augured -in root system. He stated that staff had
not observed the return of curly -leaf pondweed so far but had noticed the
return of some native plants.
Chair Kulzer wondered about the long-term effect of the drawdown.
Mr. Macklem replied that he was unsure but commented that he planned to
utilize an adapted management strategy based on ongoing observations.
Mr. Macklem then discussed sanitary sewer lining projects for 2022-23 and
noted that projects were completed in two-year cycles with the goal of
preventing stormwater inflow and infiltration (I/I) from entering the sanitary
sewer system. He reviewed that in 2022, sewer lining projects were planned
for the northwest corner of the city between Bass Lake Road and 61s' Avenue.
He noted that improvements were planned for Bass Creek Circle, and sections
of Louisiana, West Broadway and 6011, Avenues in 2023. He added that
alternate areas had also been identified if funding was available. Mr. Macklem
shared images of clay piping prior to and after lining.
Commissioner Riley wondered whether the lining was constructed of some
type of material or if it was a liquid that formed.
Mr. Weber replied that the lining was made of fiberglass and was fed through
the pipe utilizing an auguring system.
Commissioner Kaufman wondered who supervised the city's lift stations.
Mr. Weber replied that New Hope staff was responsible for monitoring the
city's 11 lift stations.
Mr. Macklem then discussed 2023 infrastructure improvement projects and
reported that a reclaim and overlay was scheduled for the Northwood Park
area east of Boone Avenue as well as south of 36th Avenue in the Sonnesyn
Elementary area. He added that a mill and overlay was also planned for a
small section north of Bass Lake Road.
New Hope Citizen Advisory Commission July 12, 2022
Page 3
Mr. Macklem reported that a noise wall had been proposed for the east side of
Highway 169 between Bass Lake Road and 62nd Avenue. He stated that MN
DOT would oversee the installation, which was planned for 2023. He also
mentioned that the city had recently completed street infrastructure projects in
that area as well as water main, storm sewer and sanitary sewer improvements
in anticipation of this project.
Commissioner Wills wondered about the future of Bass Creek, which flowed
under Highway 169.
Mr. Macklem replied that he was not aware of any specifics but thought that
MN DOT would discuss the situation with the Shingle Creek Watershed
Management Commission in the future.
Commissioner Riley felt that older noise walls throughout the area appeared
weathered. He wondered if the painting process could be improved.
Mr. Macklem replied that MN DOT had informed him that the painting
formula had been improved to provide longer lasting coverage. He added that
he would like to see better ongoing maintenance of the noise walls.
Mr. Macklem reported that the signal lights at 42nd and Boone avenues were
scheduled for replacement in 2023 and informed the commissioners that costs
for the purchase and installation of the lights would be shared with Hennepin
County. He explained that the project would include more accessible
pedestrian signals, push button improvements, and ADA improvements. He
stated that a hydrant had been relocated in 2019 in anticipation of this project.
He added that this project had been planned to coincide with a mill and
overlay project on 42nd Avenue between Gettysburg and Xylon avenues.
Mr. Macklem briefly reviewed the 42nd Avenue bridge/interchange
replacement project that was scheduled to start in 2023. He explained that the
current design would be replaced with a folded diamond layout and would
include two stoplights.
Chair Kulzer commented that he had heard that Hennepin County and/or the
City of Plymouth were not interested in installing lighting for the pedestrian
trail.
Mr. Weber replied that the city of Plymouth currently did not support lighting
for its portion of the pedestrian trail, which was planned for the south side of
the bridge.
Commissioner Riley wondered what would happen to the area where the
south cloverleaf and on -ramps currently exist.
Mr. Weber replied that staff had considered a watershed project for that area.
New Hope Citizen Advisory Commission July 12, 2022
Page 4
Mr. Macklem reported that MN DOT planned to replace the 3611, Avenue
bridge over Highway 169 in 2025, as it did not meet current height
requirements. He added the current pedestrian bridge would not be affected
by this project.
Commissioner Kaufman mentioned street improvement projects and
wondered how staff determined the type of project to implement.
Mr. Macklem replied that it would depend on the age of the roadway as well
as its current condition. He explained that all projects were factored in to a 10-
year pavement management plan, which was reviewed and updated on an
annual basis.
Commissioner Neuburger commented on sinkholes that had formed in the
city of Robbinsdale in the past and wondered about inspection methods to
prevent that from happening in New Hope.
Mr. Weber replied that the entire system had been reviewed utilizing cameras
and sonar. He also mentioned that automated valves had since been installed
to localize shutdowns if problems occurred.
Commissioner Kulzer inquired whether the 36f Avenue bridge replacement
would utilize the same footprint.
Mr. Weber replied yes and noted that the existing bridge did not meet current
height requirements.
The commissioners thanked Mr. Weber and Mr. Macklem for their
presentation. They excused themselves from the meeting at 7:47 p.m.
GARAGE SALE UPDATE Ms. Rader reviewed that 69 residents had participated in the city-wide garage
sale on June 17 and 18. She added that published maps had been available on
the city's website and paper copies had been available at city hall. She also
mentioned that a resident had requested set hours for the sale.
BRAINSTORMING — IDEAS Commissioner Neuburger referred to Friday Morning Bingo offered by the
TO BRING ATTENTION TO Parks and Recreation Department and commented that some of her neighbors
NEW HOPE had expressed interest in an evening option.
PARKS AND RECREATION Ms. Rader referred to the playground project at Hidden Valley Park and
PROJECT UPDATES reported that Public Works staff had removed the old equipment and the
contractor had removed the retaining wall. She stated that new cement had
been poured around the warming house but noted that the new retaining wall
blocks had been backordered. She also mentioned that minor court repairs
should occur in late July to early August.
Chair Kulzer commented on the success of the Aquatic Park last year and
wondered about attendance thus far in 2022.
New Hope Citizen Advisory Commission July 12, 2022
Page 5
Ms. Rader stated that attendance had been up by about 1,000 customers year
to date and noted that more season passes had been purchased this year. She
added that staffing levels had been more stable this year and commented that
she felt that operations had been going well.
Ms. Rader reminded the commissioners that the Aquatic Park would be closed
July 15-17 for a swim meet. She explained that as part of the aquatic park
project, the city had received a $40,000 grant from Minnesota Swimming in
exchange for allowing one regional swim meet annually for four years. She
added that the city still received rental fees for the use of the facility. She also
mentioned that the Aquatic Park would be open one week later in August
compared to previous years.
OTHER BUSINESS Ms. Rader made the following announcements:
• There would be no Food Truck Friday on July 15 nor Farmer's Market
on July 16 due to the regional swim meet.
• There would be no August meeting of the Citizen Advisory
Commission due to primary elections.
• The commissioner bus tour was scheduled for September 13.
• Citizen Advisory Commission annual dialog with City Council was
scheduled for September 19 at 6 p.m.
The commissioners scheduled Liberty Park cleanup for September 20 at 6 p.m.
Ms. Rader reminded the commissioners that the city was still accepting
nominations for the RAVE Award! Program.
Ms. Rader also reported that a bridge dedication for Harvey Feldman, New
Hope's first Parks and Recreation Director, had been held earlier this evening
at Northwood Park. She added that the bridge selected was located on the east
side of the park, near the ball fields.
Commissioner Riley inquired about the attendance levels for the concerts in
the park.
Ms. Rader replied that attendance had been good. She made the following
additional announcements:
• Blue Ox Trio was scheduled to perform on July 27 at 7 p.m.
• Salsa del Soul would perform on August 10 at 7 p.m.
• The Teddy Bear Band and Rich & The Resistors was scheduled to
perform on August 31 at 7 p.m. and was sponsored by the New Hope
Women of Today.
• Movie in the Park "The Lion King' was scheduled for July 14 at
approximately 9:15 p.m. and was sponsored by the New Hope Lions.
• Movie in the Park "Remember the Titans" would take place on August
25 at 8:30 p.m. and was sponsored by Thrivent-New Hope Group.
• Performances of "Joseph and the Amazing Technicolor Dreamcoat"
would take place Thursdays -Saturdays, July 21-August 6 at 8 p.m. at
the New Hope Performance Center.
New Hope Citizen Advisory Commission July 12, 2022
Page 6
Commissioner Kulzer wondered whether there had been any interest in the
Curbside Appeal Program.
Mayor Hemken requested the floor and replied that three properties had been
approved for the program but noted that she was unsure of the dollar
amounts. She added that three additional applications were currently under
review.
ADJOURNMENT Commissioner Wills made a motion to adjourn the regular meeting of the
Citizen Advisory Commission. Commissioner Riley seconded the motion. All
present voted in favor. Motion carried. The meeting adjourned at
8:07 p.m.
Respectfully submitted,
Penny Spitzer
Recording Secretary
New Hope Citizen Advisory Commission July 12, 2022
Page 7
CAC AGENDA ITEMS FOR 2022
AS OF 10/3/22
The following is a tentative listing of major agenda items that have either been assigned to the CAC, a
CAC member has asked that the item be discussed, or city staff has asked that the item be discussed by
the CAC.
October 11- Budget Discussion
November 8 - No meeting due to General Election
December 13 -?Update from Community Development; ?Discussion with Cooper HS students
*Note: A meeting may be cancelled if there are no agenda items.
On -going
• Continue to sponsor Snowman Contest, City-wide Garage Sale
• Ideas to bring attention to New Hope
• Promotion of existing City programs: In Focus, RAVE, Outstanding Business
• Volunteering at P&R/City events
Updates
• Park/Facility Projects
Possible Future Topics
• Ice Arena Operations Discussion w/ Mark Severson, Recreation Facilities Manager & Tour
• CD Projects including St. Therese Renovation
• Organics and HRG Reimbursements, Curbside Cleanup and Load Limits
• Police Department - Joint Community Police Partnership
• P&R Update
• Discussion with Cooper High School students
• Follow-up discussion with Three Rivers Park District re: CP Rail Regional Trail (later in 2022 or
early 2023)
Memorandum
To: Susan Rader, Director of Parks and Recreation
From: Tim Hoyt, Acting City Manager
Date: October 5, 2022
Subj ect: Review 2023 Preliminary Budget and Discuss Long -Term Sustainability Analysis for Golf
Course, Ice Arena and Swimming Pool
Per the request of the City Council, staff will be reviewing the 2023 preliminary budget with the commission
and discussing the long-term sustainability of the golf course, ice arena and swimming pool operations.
Representatives from Abdo will be in attendance to assist with the presentation. This is an ongoing effort to
keep the commission better informed about city operations. Abdo has served as the city's financial consultant
since 2009 and has implemented a ten-year financial plan for all city funds, which is updated and reviewed
with the City Council annually. A financial plan update will be reviewed with the City Council at a work
session in November.
2023 Preliminary Budget
The preliminary budget and tax levy was adopted at the September 12 city council meeting. This is the
maximum tax levy and budget that can be adopted; it can be reduced before final adoption in December, but it
cannot be increased. The Council reviewed all general fund budgets with department heads at their September
work session and will be reviewing utility and enterprise fund budgets at the October work session. The
Council will continue discussion at the November 21 work session, and a public hearing on the budget will be
held on December 5. Attached are excerpts from the introduction to the budget, along with the presentation
that will be reviewed with the commission.
2023 Budget
The 2023 preliminary general fund budget is $17,235,207, which is an increase of $1,056,014 (6.5%) over the
2022 budget of $16,179,193. The major changes in the budget include:
• An increase of $643,628 for wage and benefit increases (see personnel budget memo for additional
information). A 3% cost of living adjustment is budgeted for employees along with an increase in the city's
share of health insurance coverage and a comparable cities adjustment. Council salary increases have also
been budgeted for 2023.
IT charges to the general fund increased $62,158. Similar to 2022, the charges are based on the new
allocation method for indirect charges (number of phones, computers and employees per department),
with direct departmental LOGIS IT costs being allocated to the benefitting department. Significant direct
allocations to the general fund include the software for body worn cameras (WatchGuard, $30,000), the
records management for Police through Law Enforcement Technology Group (LETG, $32,448) and the
recreation software ($36,620).
• An increase of $145,000 for portable radios for the police department, due to the phase out of their current
equipment. It is recommended that a one-time transfer from the temporary financing fund be utilized for
this capital expense.
• A compensation study is anticipated for 2023. A one-time transfer from the employee leave fund is
recommended to provide funding for the consulting fees.
• There is an increase of $133,595 in the budget for West Metro Fire -Rescue District. This increase is to
provide funding for the payment on two new fire truck leases. Similar to 2019, it is recommended that the
increase in the joint powers agreement be funded with a transfer from the Fire Capital Fund.
• There is a $62,661 decrease in central garage charges. Similar to 2022, operations and capital will be funded
at 100%.
• The city is scheduled to receive $847,830 in LGA (local government aid) in 2023, which is a $18,812
decrease from 2022. The revenue will be utilized in the general fund to offset central garage equipment and
building replacement charges; it is not used for general operations.
2023 Tax Levy
The tax levy for the general fund is $12,076,955, which is $683,601 or a 6% increase over the 2022 general fund
levy of $11,393,354. The total tax levy for 2023, including the general fund, street and park infrastructure funds,
economic development housing and redevelopment authorities, and prior debt levies for City Center,
Northwood South and Northwood North infrastructure bonds, the 2017 Police Station/City Hall facility bonds,
and the 2018/2019 Pool and Park improvement bonds is $19,053,316. This represents a 4.51% or $822,305
increase over the 2022 levy of $18,231,011. The total tax levy includes a 5% increase in the street and park
infrastructure levies to support the long-term funding plans for street and park improvements. An HRA levy
of $437,850 is recommended for 2023, which is established as a special taxing district. The EDA levy of
$160,650 will be included in the city's tax rate. Both levies are needed to support the scattered site housing
program and other redevelopment due to funding changes in the CDBG program. Overall, the combined debt
levies are increasing by $9,070.
The median home value for taxes payable in 2023 is $325,000, which is an 18% increase from the median value
home in 2022. At this time the estimated impact on residential homes based on the proposed 4.51% increase in
the city tax levy is 8%. This is primarily attributed to an estimated 18% increase in the market value of
residential homes. For homes valued between $150,000 and $400,000 the tax increase estimate is $61 to $192.
The city tax rate is projected to decrease from 62.82% in 2022 to 57.23% in 2023.
The tax levy resolution included with this request for $18,615,466 excludes the $437,850 HRA tax levy
($19,053,316 less $437,850), as the HRA tax levy must be acted upon by the EDA.
Sustainability of Ice Arena, Golf Course, Swimming Pool and Park Infrastructure Fund
Abdo has prepared the attached memorandum that discusses the long-term sustainability of the golf course,
ice arena, swimming pool, and park infrastructure fund. The golf course and ice arena are enterprise funds,
which means the operation of the facilities should be supported with revenues from the facility. In 2018, the
Council approved increasing the park infrastructure levy to address long-term debt and capital improvements
at the ice arena, so a sustainable plan is in place to pay off the energy improvement project costs. The
swimming pool is a general fund budget and is supported by pool revenues and general tax dollars. Staff and
■ Page 2
the City Council closely review operations of all the three facilities on an annual basis and the staff at the
facilities are very conscientious about operational costs and are to be commended for their efforts.
Abdo will review the memorandum with the commission, and staff will be glad to respond to questions or
comments.
Attachments
• 2023 Budget Information
• Abdo Memo Re: Facilities
Page 2
2023
Preliminary Budget
Information
August 15, 2022
(updated September 2, 2022)
Budget Message
Mayor and Council Members:
Annually, the city manager must prepare a budget and present it to the city council. A preliminary budget
is considered and the maximum tax levy is adopted in September, with review and discussion of all
budgets between September and December, with the final budget and tax levy adopted in December. The
following preliminary general and enterprise fund budgets represent a summary of all services to be
provided by the city in 2023. The 2023 Budget includes the operations of the general fund that are
supported by property taxes and budgets for certain special revenue and enterprise funds. The city's
budget is reflective of the city's plans, policies, procedures, and objectives regarding services to be
provided in fiscal year 2023 and beyond.
Prior Years
2020 BJ_ etet
The 2020 general fund budget was $15,410,550, and included a $136,483 levy increase (or 1.32% levy
increase) over the 2019 budget of $14,224,112 for a total general fund tax levy of $10,511,431. The total city
tax levy for 2020 was $16,844,716, which represented a 10.08% or $1,543,106 increase over the 2019 levy.
The major increases in the general fund were adding pool operations back into the budget, wage and
benefit increases (3% wage increase for city employees and council members), central garage charges, West
Metro Fire -Rescue District joint powers agreement and 2020 election costs. The city received $815,623 in
local government aid (LGA), and it was utilized in the general fund to help fund equipment replacement
savings (not used for general operations). The total tax levy included a new levy for pool and park
improvement bonds, a $100,000 increase in the park infrastructure fund for ice arena debt service/capital
improvements and a $48,000 increase in the EDA levy for redevelopment. The tax levy for the 2010 fire
truck certificates was eliminated from the total levy as that debt was paid off in 2019.
2021 Budget
The 2021 general fund budget was $15,936,977, and included a $368,034 levy increase (or 3.5% levy
increase) over the 2020 budget of $15,410,550 for a total general fund tax levy of $10,879,465. The total city
tax levy for 2021 was $17,417,601 which represented a 3.4% or $572,885 increase over the 2020 levy. The
major increases in the general fund were for police department body and squad camera purchase, wage
and benefit increases (3% wage increase for city employees and council members), West Metro Fire -Rescue
District joint powers agreement, central garage charges and the city hall budget (increases in utility cost
and liability insurance for larger building and new emergency generator replacement cost). The city
received $865,307 in local government aid (LGA), and it was utilized in the general fund to help fund
equipment replacement savings (not used for general operations). The total tax levy included a 5% increase
in the street and park infrastructure levies, a $100,000 increase in the park infrastructure fund for ice arena
debt service/capital improvements and a $17,000 increase in the EDA levy for redevelopment. Overall, the
combined debt levies decreased by $3,611.
-1-
2022 Bea et
The 2022 general fund budget was $16,179,193, and included a $513,889 levy increase (or 4.72% levy
increase) over the 2021 budget of $15,936,977 for a total general fund tax levy of $11,393,354. The total city
tax levy for 2022 was $18,231,011, which represented a 4.67% or $831,410 increase over the 2021 levy. The
major increases in the general fund were for wage and benefit increases (3% wage increase for city
employees and council members), IT charges (including software for body worn cameras), West Metro
Fire -Rescue District joint powers agreement, Emerald Ash borer removal/replacement program and 2022
election costs. The city received $866,642 in local government aid (LGA), and it was utilized in the general
fund to help fund equipment replacement (not used for general operations). The total tax levy included a
5% increase in the street and park infrastructure levies and a new HRA levy to support the scattered site
housing program. Overall, the combined debt levies decreased by $1,797.
2023 BudZet
The 2023 preliminary general fund budget is $17,235,207, which is an increase of $1,056,014 (6.5%) over the
2022 budget of $16,179,193. The major changes in the budget include:
• An increase of $643,628 for wage and benefit increases (see personnel budget memo for additional
information). A 3% cost of living adjustment is budgeted for employees along with an increase in the
city's share of health insurance coverage and a comparable cities adjustment. Council salary increases
have also been budgeted for 2023.
• IT charges to the general fund increased $62,158. Similar to 2022, the charges are based on the new
allocation method for indirect charges (number of phones, computers and employees per department),
with direct departmental LOGIS IT costs being allocated to the benefitting department. Significant
direct allocations to the general fund include the software for body worn cameras (WatchGuard,
$30,000), the records management for Police through Law Enforcement Technology Group (LETG,
$32,448) and the recreation software ($36,620).
• An increase of $145,000 for portable radios for the police department, due to the phase out of their
current equipment. It is recommended that a one-time transfer from the temporary financing fund be
utilized for this capital expense.
• A compensation study is anticipated for 2023. A one-time transfer from the employee leave fund is
recommended to provide funding for the consulting fees.
• There is an increase of $133,595 in the budget for West Metro Fire -Rescue District. This increase is to
provide funding for the payment on two new fire truck leases. Similar to 2019, it is recommended that
the increase in the joint powers agreement be funded with a transfer from the Fire Capital Fund.
• There is a $62,661 decrease in central garage charges. Similar to 2022, operations and capital will be
funded at 100%.
■ The city is scheduled to receive $847,830 in LGA (local government aid) in 2023, which is a $18,812
decrease over 2022. The revenue will be utilized in the general fund to offset central garage equipment
and building replacement charges; it is not used for general operations.
2023 Tax Lemy
The tax levy for the general fund is $12,076,955, which is $683,601 or a 6% increase over the 2022 general
fund levy of $11,393,354. The total tax levy for 2023, including the general fund, street and park
infrastructure funds, economic development an housing and redevelopment authorities, and prior debt
levies for City Center, Northwood South and Northwood North infrastructure bonds, the 2017 Police
Station/City Hall facility bonds, and the 2018/2019 Pool and Park improvement bonds is $19,053,316. This
represents a 4.51% or $822,305 increase over the 2022 levy of $18,231,011. The total tax levy includes a 5%
-2-
increase in the street and park infrastructure levies to support the long-term funding plans for street and
park improvements. An HRA levy of $437,850 is recommended for 2023, which is established as a special
taxing district. The EDA levy of $160,650 will be included in the city's tax rate. Both levies are needed to
support the scattered site housing program and other redevelopment due to funding changes in the CDBG
program. Overall, the combined debt levies are increasing by $9,070.
The median home value for taxes payable in 2023 is $325,000, which is an 18% increase from the median
value home in 2022. At this time the estimated impact on residential homes based on the proposed 4.51%
increase in the city tax levy is 8%. This is primarily attributed to an estimated 18% increase in the market
value of residential homes; an increase which is disproportionate to the change in commercial and
industrial valuations. For homes valued between $150,000 and $400,000 the tax increase estimate is $61 to
$192. The city tax rate is projected to decrease from 62.82% in 2022 to 57.23% in 2023.
Overview
The budget provides a plan for the city for 2023 and beyond. It includes priorities and initiatives for the
current year, as well as a focus for the future. The major key points and initiatives include:
Budget Fermat
• A new budget format was implemented in 2010 in an effort to enhance understandability and
improvements continued to be made. The 2011-2022 budgets were prepared in a way that utilized the
J.D. Edwards finance software to make the process more efficient for the department heads. The
budgets included the Council approved priorities for each department. These will continue to be
reviewed and updated as needed for future budget documents.
■ In 2012 a services/programs priorities matrix was completed by the city council and commissioners
rating functions as core or discretionary and the amount of expenditure for the service was identified.
Departments were reviewed and discussed and percentage of budget information has been inserted on
each budget narrative page. Public purpose statements were added to budget narratives.
• Budget narratives under the summary section include major changes to budgets and personnel changes
are noted.
• A listing of positions and salaries is included with the organization chart and the salary information
ties directly to departmental budgets.
■ A memorandum from the city's financial consultant is included that summarizes personnelibenefit
costs, staffing changes and city consultant costs.
• A pie chart is included to illustrate the percentage of budget devoted to each function.
■ In conjunction with the League of Minnesota Cities, New Hope participates in a local performance
measures program in key city service areas. This is done through an on-line and/or paper city services
survey, and every five years a professional random telephone survey is completed with more
statistically accurate information. The city will solicit resident feedback on the delivery of services,
specific performance measures will be developed and the information will be incorporated intp the
final 2023 budget presentation.
• Per the request of the City Council, starting in 2015 the budget was reviewed with the Citizens
Advisory Commission and that practice will be continued for the 2023 budget.
• In 2016 staff compiled a performance measurement report to track and compare the city's performance
over a period of years and to compare performance to similar sized cities. The department heads also
developed a list of SMART goals (specific, measureable, achievable, realistic and time sensitive) which
are reviewed by the City Council and incorporated into the Performance Measurement Report. This
-3-
document can be found on the city's website and is reviewed with the City Council and updated
annually.
10-Year Financial Plan
In 2017, Abdo Financial Solutions coordinated with department heads and the city manager and expanded
the city's five-year financial plan to include an additional five years. Abdo presented the 10-year planning
model to Council in November of last year and presented select enterprise fund capital analysis in March
of this year. The model is intended to show stakeholders the results of current budget actions and provide
scenarios for future actions at the staff and Council level. This format integrated the current 10-year capital
plan and 2021 budget. This plan provides information and analysis on the Enterprise and Internal Service
Funds as well as the Street and Park Infrastructure Funds.
When the preliminary 2023 budget is completed, the budget assumptions will be integrated into an
updated 10-year plan and presented to Council. The city's credit rating was upgraded several years ago as
a result of the implementation of this long-term financial planning tool, and the AA credit rating was
reaffirmed in 2017, 2018 and 2021 by Standard & Poors. An overall financial management plan for the city
integrating all policies and procedures was completed in August 2016, which improved the management
score from "strong" to "very strong", the highest value assigned by S&P for that part of the rating.
2023 Goals/Priiorffies
1. Hold the line on spending; continue to provide existing services and programs with current resources.
2. Keep the general fund tax levy/property taxes as low as possible (levy limits are not in effect for 2023).
Continue to proactively pursue all outside funding opportunities for infrastructure and facility
improvements and other programs including public safety, parks and recreation, public works and
housing/redevelopment.
4. Implement 5% annual increase in street and park infrastructure levies to fund capital improvements
outlined in the Pavement Management and Long -Term Financial Plan.
5. Staff is recommending that the city continue with the EDA levy for redevelopment purposes and an
HRA levy to provide additional funding for the scattered site housing program. Abdo and staff are
recommending that the Council consider implementing levies for long-term capital improvements at
the police station/city hall, fire station #3 and the new aquatic park. Overall, the city's debt service
levies will increase for 2023.
6. Central Garage equipment replacement costs will be funded at 100% in the general fund and staff
recommends using LGA funding for that purpose (not general operations).
7. 2023 is not an election year so there is an approximate $40,000 decrease in the elections budget. If any
new council members are elected in 2022, appropriate orientation and training will be provided.
8. The overall safety of the general public is always the top priority of the police department and
continuing an emphasis on building upon our relationships with residents through our community
engagement programs. The Chief of Police is recommending two additional staff members. The first
-4-
being an Evidence Technician to oversee the evidence room and body worn camera tasks. The second
would be a transition of the shared Embedded Social Worker Program from a shared position to New
Hope having its sole use because of resident mental health needs and workload. Major CIP items
include replacement of half (26) of the portable radios, two (2) stalker radar units, three (3) SWAT vests
and bicycles and equipment for the bike unit.
9. Continue support and coordination with West Metro Fire -Rescue District, including emergency
preparedness and EOC, in partnership with city of Crystal; continue to support long-term capital plan
based on major apparatus report. New Hope's share of JPA budget to increase approximately $133,000
including annual lease payments for aerial and first year of new engines. Continue to budget annually
for Station #3 improvements that are the city's responsibility ($30,000 per year).
10. Redevelopment will remain a high priority with a continued effort to seek out potential commercial
and industrial redevelopment opportunities. Coordinate with St. Therese Nursing Home on their
multi -phase renovation project. Continue to coordinate on scattered site housing program and curbside
appeal reimbursement program. Property maintenance and inspections will continue as a top priority.
11. Continue with infrastructure and environmental improvements; major CIP projects for 2023 include
street/water/sewer/storm water improvements in the Northwood East neighborhood, coordination
with MnDOT on the Bass Lake Road/62od Avenue noise wall on TH 169, and coordination with
Hennepin County on 42°d and Boone Avenues signal and watermain replacement, trail, street lighting
and monument sign. Continue coordination on both 42°1 and 361h Avenue TH 169 bridge replacements
and coordinate with JWC on the repainting of south water tower. Plan for phase two public works
building expansion. Continue coordination with watershed districts and Northwood/Meadow Lake
Associations and make scheduled equipment replacements.
12. In Parks and Recreation, operate the new aquatic facility for a third season. Park CIP projects include
replacing playground equipment and basketball court at Liberty Park, Lighted Field baseball project
(leveling of field, retrofit lights, new fencing), and purchase/replacement of picnic tables and
replacement of older drinking fountains. Improvements at ice arena include south rink project (re -
cementing floor, replacement of piping and replace boards/glass), upgrades to concession stand,
rebuild ice compressors and replace 3 water heaters and replacement of skate tile in south rink and
bleacher caps in the north rink. Golf course improvements include maintenance garage updates,
addition of cold storage space, replacement of fire system and updating clubhouse fireplace. The
Director of Parks and Recreation is recommending the addition of a golf course superintendent
position. Continue movies and music in the parks at the performance center and continue to work with
OBMT to offer musical performances. Continue to offer a variety of programs including dance,
gymnastics, and playground programs.
13. Continue Emerald Ash Borer program on public property and invasive species (buckthorn) removal in
parks.
14. Continue contractual arrangement with Abdo for financial oversight, continue to implement
technological efficiencies on departmental basis to retrieve budget data, continue to update 10-year
financial plan and monitor utility and enterprise fund operations. Continue to work on implementing
long-term equipment schedule replacement program for all park and recreation facilities and prepare
plan to internally fund phase two public works building and site improvements.
-5-
15. Continue contractual agreement with Solution Builders for IT services, continue replacing computers as
appropriate in order to keep up-to-date with technological capabilities and meet IT needs of staff. In
addition to the day-to-day operations of the city, some highlights of the IT budget include funding for:
the city's share of replacing the LOGIS fiber optic network in 2024, moving to a new police record
management system in 2023 or 2024, annual renewal of the body worn camera software, and conduct a
request for proposals for a new website in 2023.
16. Conduct city services survey to solicit feedback on city services/projects/issues, continue to
encourage/improve public participation in city affairs and promote inclusiveness, continue to promote
Nextdoor.com, update performance measurement report and SMART goals and conduct commissioner
bus tour and other public events.
17. Continue to update 10-year pavement management and street infrastructure plans and monitor
curbside residential organics collection program.
18. Continue participation in Green Steps program and implement actions to potentially achieve higher
ranking in program.
19. Staff recommends incorporation of a 3% cost of living adjustment for employees and a 50/50 cost share
for employee insurance increases. Staff recommends that funding be budgeted to update the
compensation study for non -union employees. Council salary adjustments to be considered for
2023/2024 before the General Election.
All line items in the budget received several series of reviews and evaluations by department heads and
the city manager.
Sanitary Sewer — At 12/31/21 the sanitary sewer utility fund had a cash balance of $2,070,556. The City
Council approved a 4% rate increase for 2022. A 4% rate increase is recommended for 2023 to meet
ongoing capital needs and to keep pace with the rate increases approved by the Metropolitan Council.
Water — At 12/31/21 the water fund had a cash balance of $3,154,081. A 4% rate increase was implemented
in 2022. A 4% rate increase is recommended for 2023 to meet ongoing capital needs and to keep pace with
the rate increases approved by the Joint Water Commission.
Storm Water — At 12/31/21 this fund had a cash balance of $1,240,598. A 4% rate increase was implemented
in 2022 and a 4% rate increase is recommended for 2023 to meet ongoing capital needs.
Street Lighting — At 12/31/21 this fund had a cash balance of $128,962. A 5% rate increase was
implemented in 2022 and a 5% rate increase is recommended for 2023 to meet ongoing capital needs.
Golf Course — At 12/31/21 this fund had a cash balance of $341,554. The 2022 budget calls for a $26,678
decrease in cash, after accounting for $54,000 in capital improvements.
Ice Arena — This fund had an interfund loan of $194,063 to assist with cash flow management as of
12/31/21. The 2022 budget calls for an increase in the cash balance of $41,373 after factoring in a $500,000
-6-
transfer in from the Park Infrastructure Fund, payment on capital improvements of $260,000 and a $245,000
principal paydown on the 2021A Bonds.
Conclusion
Historically (or in prior years), legislative changes to levy limits, local government aid and other state aid
programs have placed increased pressure on municipal budgets. To counteract these changes and ensure
the financial health of the city, certain financial practices have been implemented. Measures include
implementation of a financial management plan in 2016, a ten-year long -tern financial plan in 2018
(replaced the city's existing five-year program) as well as adherence to fund balance policies. Collectively,
these practices have contributed to the city's AA bond rating and ensure the city can maintain a strong
financial position even in challenging economic times. The 2023 budget represents staff s best efforts to
hold the line on spending and keep the overall increase in levy to a minimum. Council and staff are
committed to providing quality services and maintaining the city's investment in infrastructure.
As the Council is aware, the city has utilized the services of Abdo Financial Solutions to assist in
developing the current budget format and facilitating meetings with department heads. Their assistance as
a change agent has been beneficial as the city has significantly modified the budget presentation.
Respectfully Submitted,
Tim W. Hoyt
Acting City Manager
-7-
Budget Process
The annual budget is prepared in accordance with Minnesota statutes which previously mandated a
"Truth in Taxation" program for local governments. This process required local governments to give notice
to each property owner regarding their intention on budgets and levies. Under statutes passed in the 2009
legislative session, the published notices, public hearings and meetings were essentially abolished.
Pursuant to state law, councils must include information on the budget and levy process in meeting
minutes. Citizens must be allowed to speak at "regularly scheduled meetings" dealing with budgets and
levies and these meetings must not be held before 6 p.m. Cities must provide the same specific meeting
information to county auditors on or before September 30.
The city manager and finance consultant, in conjunction with department heads, are responsible for the
development of the annual budget. The city attempts to adopt a balanced budget so that the appropriated
expenditures do not exceed the estimated revenues and reserves available from prior years. As the budget
calendar indicates, the budget process begins in May each year with the distribution of budget information
to all departments. All departments are responsible for compiling budget figures which are then reviewed
and adjusted by the city manager during individual department meetings. After the departmental
meetings the city manager presents the proposed budget to the City Council. The proposed budget is
reviewed by the City Council and the final budget is adopted by the end of December. A public hearing to
receive public comment on the budget will be held on December 5, 2022.
2023 BUDGET SCHEDULE
May - June, 2022
General discussion/direction.
By July 31, 2022
Department head meetings with city manager and finance consultant.
August 15, 2022
Preliminary budget presented at work session/discuss tax levy.
September 6, 2022
Tentative additional budget work session if no consensus on tax levy at August
work session.
September 12, 2022
Preliminary maximum levy adopted by council.
September - Nov.
Continue to refine general fund budget and discuss all enterprise and utility fund
budgets.
September 19, 2022
Review individual department budgets with department heads.
October 17, 2022
Review HRG programs and rates as well as utility and enterprise fund budgets.
November 21, 2022
Review budget document for public hearing.
December 5, 2022
Budget public hearing.
December 12, 2022
Adopt final approved budget.
Revenues
Property Taxes are a revenue source in the general, special revenue and infrastructure funds. This revenue
source is primarily used in the general fund to pay for general government services and is determined on
the basis of availability of other revenue sources and the expenditure level necessary to conduct city
business in accordance with council policies and directives.
Intergovernmental Revenues includes state aid for police, street maintenance, and grant funding. These
budget items are susceptible to overall State of Minnesota budget conditions.
-8-
Revenues (continued)
Licenses & Permits include business licenses, building -related permits and fees, and other non -business
licenses and permits.
Charges for Services include administrative charges, recreation program fees, police and fire services, and
facility use fees.
Fines & Forfeits include fines paid for traffic violations and criminal offenses occurring within city limits.
Investment income includes interest earned on the city's investment portfolio. Interest income continues to
be difficult to predict due to the current market conditions.
Franchise fees were implemented in 2003. The rate for residential properties was $1.50 per month for gas
and electric franchise fees. Between years 2003 to 2009 the revenue from franchise fees was split between
the EDA and the general fund. Between years 2010 to 2016, due to the reduction of LGA, the entire revenue
from franchise fees (approximately $440,000) was placed in the general fund. Council adopted ordinance
2016-11 to increase franchise fee rates effective January, 2017, to raise additional revenue for the street
infrastructure fund based on the long-term pavement management plan. The new rate for residential
properties is set at $3.00 per month for gas and electric franchise fees. It was agreed that the first $880,000
of revenue would be divided equally between the general fund and the street infrastructure fund ($440,000
per fund) and that any excess revenue above the first $880,000 would be allocated to the general fund in an
effort to keep the tax levy lower.
-9-
Tax Levy, Tax Capacity, and Tax Impact
The proposed budget for 2023 reflects a tax levy of $19,053,316 which is an increase of 4.51 percent. The
following table summarizes the 2022 tax levy compared with 2023:
Property Tax Levy — All Funds
Comparison of Property Taxes
Program or service
Base Levy
General fund
Street Improvements
Park Improvements (1)
Economic Development Authority
Housing and Redevelopment Authority
Debt Service
2015A GO TIF Bonds (City Center)
2015B GO Imp Bonds (Northwoods South)
2016A GO Imp Bonds (Northwoods North)
2017A GO Bonds (Police Dept/City Hall)
2018A GO Tax Abatement Bonds (Pool and Park)
2019A GO Tax Abatement Bonds (Pool and Park Ph. 2)
% Change
Increase/ from Prior % of Total
2022 Levied 2023 Requested Decrease Year Change
$ 11,393,354
$ 12,076,955 $
683,601
6.00
3.75
1,617,735
1,698,622
80,887
5.00
0.44
904,938
925,185
20,247
2.24
0.11
153,000
160,650
7,650
5.00
0.04
417,000
437,850
20,850
5.00
0.11
235,227
237,853
2,626
205,240
208,745
3,505
262,502
263,709
1,207
1,706,828
1,705,515
(1,313)
862,739
867,464
4,725
472,448
470,768
(1,680)
Total Property Taxes $ 18,231,011 $ 19,053,316 $ 822,305
(1) Includes an increase of 5% as the annual Park Infrastructure Levy increase, plus an additional $500,000 levy to support
Ice Arena debt service.
1.12 0.01
1.71 0.02
0.46 0.01
(0.08) (0.01)
0.55 0.03
(0.36) (0.01)
4.51 4.51
The city-wide tax capacity represents the taxable property value within the city. It is determined by
applying the state-wide property tax formula for each parcel, then adding each parcel's tax capacity. The
city-wide tax capacity is then applied to the proposed levy to determine the local tax rate. The following
table shows the change in tax capacities by property type:
New Hope Tax Capacities per the Assessor's Annual Report
Property Ty
pe
2020 Pay 2021
2021 Pav 2022
2022 Pay 2023
Perot
Residential
$ 12,717,695
$ 13,791,310 $
16,598,033
20.35%
Commercial / Industrial
9,465,719
9,594,259
10,865,579
13.25%
Apartment
4,843,947
5,150,623
5,554,255
7.84%
Total $ 27,027,361 $ 28,536,192 $ 33,017,867 15.71%
Source: Hennepin County Assessor's Annual Assessment Report. The report does not include personal property
values. Tax capacity estimates in the Assessor's Report will vary from the tax capacity that is certified for use
in calculating the City's tax rate.
-10-
The following table summarizes the local tax rate:
Payable 2021
Payable 2022
Payable 2023
Tax Capacity
27,338,807
28,720,529
33,191,296
TIF Captured Value
(1,565,751)
(1,634,255)
(1,910,032)
Fiscal Disparities Contribution
(3,317,874)
(3,682,171)
(3,670,779)
Net Tax Capacity
22,455,182
23,404,103
27,610,485
Certified Levy
17,052,601
17,814,011
18,615,466
Fiscal Disparities Distribution
(2,996,822)
(3,110,358)
(2,815,427)
Local Levy
14,055,779
14,703,653
15,800,039
Tax Rate Trends
2021
2022
2023
City Tax Rate
62.596%
62.826%
57.225%
BRA Tax Rate
1.344%
1.497%
1.535% (1)
County Tax Rate
38.210%
38.535%
38.535% (1)
School Tax Rate
25.529%
26.507%
26.507% (1)
Other Tax Rate
8.598%
8.742%
8.742% (1)
Total Tax Rate
136.277%
138.107%
132.544%
(1) Amounts for county, school and other districts are not known at this time. Prior year actual tax
rates have been used for this illustration.
-11-
The following table summarizes the estimated tax impact on residential homes based on the proposed
increase in the city tax levy.
2022 Market
Value of a Taxable
Home Market Value
2022 Actual
2023
Estimated
$ Increase / % Increase /
(decrease) (decrease)
$ 150,000
$ 126,300 $
793 $
854 $
61
8%
175,000
153,500
964
1,038
74
8%
200,000
180,800
1,136
1,223
87
8%
225,000
208,000
1,307
1,407
100
8%
250,000
235,300
1,478
1,591
113
8%
300,000
289,800
1,821
1,960
139
8%
350,000
344,300
2,163
2,328
165
8%
400,000
398,800
2,506
2,697
192
8%
*The median home value for taxes payable in 2023 is $325,000, which is an 18% increase from the median value
-12-
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MEMO
TO: TIM HOYT
FROM: VICKI HOLTHAUS
SUBJECT: GENERAL FUND PERSONNEL BUDGET
DATE: AUGUST 2, 2022
BACKGROUND
The 2023 Preliminary Budget included $643,630 or 6.31 % in changes from the 2022 General Fund personnel budget.
This memo was prepared by staff to further highlight the major drivers of the budget increase.
Key points
The 2023 Personnel Budget accounts for the City's compensation and benefits plan, which includes the following
components:
Total employment is as follows: 104 full-time, 3 part-time, and an average of 70 seasonal
• 3% cost of living adjustment (COLA) to union and non -union wage scales
• Step increases (percentage varies based on employee compensation scale)
■ 1 % merit increases for eligible employees
C Contributions to Public Employee's Retirement Association (percentage varies based on employee group)
■ Health benefit contributions (contribution varies based on employee elections)
■ Life insurance contributions
• Worker's compensation insurance expense (percentage varies based on employee group)
■ Applicable taxes
Budget increase — major drivers
GeneralFu\d Personnel Budgcl Increases
E, idence rech - tick,
Changes in pail- position C-0
nine seamial.and �`•• a
posvtin allucak m
t)^..
Ikahh Insutmhe
174a
Step
I5"a
Wotka's
Cnmpensm ion
-14-
The above chart highlights the major drivers in the General Fund personnel budget increase. The increases in the
personnel budget are summarized as follows:
• COLA increases account for $152,499 or 24% of the increase in the personnel budget
• Step increases account for $98,990 or 15% of the increase in the personnel budget
■ Changes in worker's compensation expense accounts for $173,665 or 27% of the increase in the personnel
budget
■ Change to health insurance elections and premiums cost accounts for $109,626 or 17% of the increase in the
personnel budget
■ Addition of an Evidence Tech position accounts for a $54,362 or 8% increase in the personnel budget
• Other changes in part-time, seasonal, and position allocations account for $54,486 or 9% of the increase in the
personnel budget
2023 Personnel Budget — All City Funds
The above highlights specifically address the personnel budget changes as they relate to the City's General Fund.
Overall, the City's personnel budget will increase by $942,001 to $13,464,973 in 2023.
In addition to the personnel costs incurred for City staff, City Council, EDA and the Personnel Board, the City
contracts with several consultants to augment the work of staff. The following is a summary of some of the key
consulting costs incorporated into the 2023 budget. A break -down of the consulting fees by fund is attached.
Vendor
AEM Financial Solutions, LLC
Ehlers, Inc. (4)
Morris Leatherman Survey
Hennepin County
Jensen, Sondrall, Persellin & Woods, P.A.
LOGIS (1,2)
Malloy, Montague, Kamowsld, LLC
Service
Accounting
Financial
Administrative
Assessor
Legal
Information Technology Services
Audit
Actual2021 Total 2023
Fees Budget
223,364 137,250
3,875 15,000
165,000
180,000
234,094
229,200
416,849
414,790
45,750
42,865
Northwest Associated Consultants, Inc. (3) Planning 12,817 12,000
Solution Builders, Inc. t1 r Information Technology Services 151,710 167,961
Stantec Consulting Services, Inc. Engineering 146.605 104,800
Total 1,400,06=1 1,303,866
(1) Costs paid by the intemal service funds are charged out to other City funds.
(2) Only managed service cost has been included in the budget figures for contracted service fees.
(3) A significant portion of these fees are offset by fees charged to applicants.
(4) Does not include fees paid from bond sales.
-15-
x
La
G
S ro 8
O V1 O
p 00 O
nl h
oO O
Q O
O O h O
O N N Y
m _ v
2023 BUDGET -GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES & CHANGES IN FUND BALANCE
REVENUES
Property taxes
Franchise taxes and other
Licenses and permits
Intergovernmental revenues
Fines and forfeits
Charges for services
Recreation fees
Assessment revenue
Investment income
Miscellaneous
TOTAL REVENUES
EXPENDITURES
General government
Public safety
Public works
Parks and recreation
TOTAL EXPENDITURES
OTHER FINANCING SOURCES (USES)
Other -transfers in
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCE, JANUARY 1
FUND BALANCE, DECEMBER 31
Revenues - 2023 Budget
IntergovernT- 1
9%
Charges and
Fees, 14%
Franchise
fees, 3%
Other, 0,
2023
Budget
$ 12,076,955
535,000
335,720
1,502,330
200,000
548,615
1,253,400
30,000
25,000
10,000
16,517,020
2,426,061
10,058,585
1,616,757
3,133,804
17,235,207
718,187
718,187
(0)
8,673,743
$ 8,673,743
Expenditures - 2023 Budget
Parks and
recreation
18%
Public works
s
Taxes, 70%
—24—
General
government
14%
Public safety
5$ iS
2023 BUDGET- GENERAL FUND
SCHEDULE OF REVENUES
2020
2021
2022
2023
2022 to 2023
2022 to 2023
Proposed
Increase
Increase
Actual
Actual
Budget
Budget
(Decrease)
(Decrease)
REVENUES
Taxes
Property taxes $ 10,422,724 $
10,909,748 $
31,393,354
$ 12,076,955
$
693,601
6.0%
Franchise taxes and other 518,260
527,220
535,000
535,000
0.0%
Licenses and permits 393,911
392,030
329,570
335,720
6,150
1.9%
Intergovernmental revenues 3,151,217
2,603,365
1,524,542
1,502,330
(22,212)
-1.5%
Fines and forfeits 138,922
185,603
200,000
200,000
0.0%
Charges for services 422,491
535,906
554,260
548,615
(5,645)
-1.0%
Recreation fees 285,337
973,475
1,240,425
1,253,400
12,975
1.0%
Assessment revenue 110,670
32,210
40,000
30,000
(10,ODO)
-25.0%
Investment income 113,294
(93,318)
50,000
25,D00
(25,000)
-50.0%
Administrative Transfer Fee 287,488
294,672
302,042
309,593
7,551
2.5%
Other Transfers 51,800
156,D00
408,594
408,594
N/A
Miscellaneous 9,673
69,926
10,000
10,000
0.0%
TOTAL REVENUES $ 15,905,789 $
16,586,837 $
16,179,193
$ 17,235,207
$
1,056,014
6.5%
Major changes in revenue
Property Taxes
$
683,601
Transfers
Temporary Financing Fund for Police Department Radio Purchases
145,000
Fire Capital Fund forJolnt Powers Agreement with West Metro Fire
133,594
Park Infrastructure Fund for Emerald Ash Borer Mitigation
100,000
Employee Leave Fund for Compensation Study
30,000
Other changes
11,031
Local Government Aid and Other Intergovernmental Revenue
(22,212)
Investment Income
(25,000)
Total increase in revenue
$
1,056,014
-25-
2023 BUDGET - GENERAL FUND
SCHEDULE OF EXPENDITURES
2020
2021
2022
2023
2022 to 2023
2022 to 2023
Proposed
Increase
Increase
Actual
Actual
Budget
Budget
(Decrease)
(Decrease)
EXPENDITURES
General government
Mayor and council $
94,661 $
105,867
$ 103,349
$ 106,836
$ 3,487
3.4%
City manager
431,613
453,788
463,853
480,013
16,160
3.5%
Elections
55,717
4,956
42,906
4,900
(38,006)
-88 6%
Finance
310,087
317,266
309,314
327,618
18,304
5.9%
Assessing
160,000
165,000
172,000
180,000
8,000
4.7%
Legal
29,429
16,901
20,000
20,000
0.0%
Human resources
299,827
325,426
320,032
354,859
34,827
10.9%
Planning
153,023
159,826
296,103
312,792
15,689
5.6%
Communications
114,179
144,249
178,013
177,732
(281)
-0.2%
City hall
413,876
454,847
424,016
461,311
37,295
8.8%
Total general government
2.062,412
2,148,126
2,329,586
2,426,062
96,475
4.1%
Public safety
Police
6,262,954
6,629,957
6,967,656
7,571,601
603,945
87%
Police reserves
23,488
9,709
12,740
12,912
172
1.4%
Fire services
1,423,808
1,428,843
1,505,680
1,643,504
137,824
9.2%
Protective inspection
595,796
602,907
666,895
705,573
38,678
5.8%
Animal Control
103,830
104,562
123,532
124.995
1,463
1.2%
Total public safety
8,409,877
8,765,978
9,276,503
10,058,585
782,082
8.4%
Public works
Engineering
40,842
43,492
40,000
40,000
-
0.0%
Streets
1,581,200
1,609,512
1,558,929
1,576,757
17,828
1.1%
Total public works
1,622,041
1,653,004
1,598,929
1,616,757
17,828
1.1%
Parks and recreation
Recreation
858,899
948,551
1,065,701
1,101,531
35,830
3.4%
Parks
1,030,859
1,127,574
1,193,818
1,232,256
38,438
3.296
Swimming pool
145,901
553,327
714,656
800,017
85,361
12.9%
2,035,657
2,629,452
2,974,175
3,133,804
359,629
5.4%
Other Financing Uses
Transfers Out
1,642,533
-
N/A
1,642,533
N/A
TOTAL EXPENDITURES $
14,129,987 $
16,839,093
$ 16,179,193
$ 17,235,207
$ 1,056,014
6.5%
Major changes in expenditures
Personnel Budget Changes Including Evidence Technician (Police Department)
$ 421,206
Portable Radios (Police)
145,000
Joint Powers Agreement with West Metro Fire
137,824
Personnel Budget Changes Including Seasonal (Swimming Pool)
85,816
Central Garage Charges
62,661
Personnel Budget Changes (Parks)
41,036
Prosecution Fees (Police)
40,000
Personnel Budget Changes (Protective Inspections)
32,027
Compensation Study
30,001)
Personnel Budget Changes(Recreation)
27,915
Increases in Utility Costs (City Hall)
27,000
No Election in 2023
(38,006)
Other Changes
43,635
Total increase in expenditures 1,056,014
-26-
10/5/2022
Presentation Outline
Review budget process
Review general fund budget
Present preliminary tax levy
Review debt levies
Review estimated tax impact and tax rate
10/5/2022
Budget Process
September 12, 2022 Council Meeting
o Approve 2023 preliminary tax supported budgets
o Approve 2023 preliminary tax levy (maximum amount)
o Schedule public hearing date for 2023 budget
(December 5 at 7:00 pm)
City Clerk submits maximum tax levy to county auditor
for certification along with public hearing date
September 19, 2022 Work Session
General fund budgets reviewed with city manager,
Abdo and department heads
3
Budget Process
October 17, 2022 Work Session
Utility and enterprise fund budgets reviewed with city
manager, Abdo and department heads
a HRG budget/program/rates discussed
o Utility rate recommendations reviewed
November 21, 2022 Work Session
o County assessor information reviewed
o City services survey results presented
• Budget public hearing presentation reviewed
IJ F7
4
2
10/5/2022
Budget Process
December 5, 2022 Budget Public Hearing
Presentation and comments from residents
December 12, 2022 Council Meeting
Final budget approved
Utility/recycling rate changes approved
Certify final levy to Hennepin County Auditor and
Department of Revenue
ez(t I I :,� � a
5
General
Fund Budget
2021
2022
Adopted
Adopted
2021 to 2022
2021-2022
Budget
Budget
Increase
% Increase
$15,936,977
$16,179,193
$242,216
1.5%
2022
2023
Adopted
Preliminary
2022 to 2023
2022-2023
Budget
Budget
Increase
% Increase
$16,179,193
$17,235,207
$1,056,014
6.5%
f�
I
3
10/5/2022
2023 Preliminary General Fund
Major Budget Changes
$643,628 increase to fund 3% increase in wages/benefits;
increase includes evidence technician, new union contract
rates, adjustment to health insurance contributions, and
Council salary increase.
$145,000 increase for portable radios, due to phase out of
current equipment.
$133,595 increase in West Metro Fire -Rescue District joint
powers agreement (includes aerial lease and two new truck
leases).
$62,158 increase in IT charges, including WatchGuard,
records management through LETG, and LOGIS software.
rA
2023 Preliminary General Fund
Major Budget Changes
L - - - - - --
E3 $62,661 decrease in central garage charges.
® $38,000 decrease in elections budget for election
judge costs.
City to receive $847,830 in Local Government Aid
(LGA) which is a decrease of $18,812 over 2022; LGA
used for equipment replacement savings — it is not used
for general operations.
8
4
10/5/2022
2023 Preliminary Tax Levy
General fund tax levy is $12,076,955, which is $683,601 or
6% increase over 2022 general fund levy of $1 1,393,354
(4.72%).
Total tax levy, including:
® General Fund
a Street and Park Infrastructure Funds
a EDA Levy
a H RA Levy
® Prior Debt Levies
is $19,053,316, which is $822,305 or 4.51 % increase over
2022 total levy of $18,231,01 1 (4.67%).
2023 Preliminary Tax Levy
Total tax levy includes:
a 5% (80,887) increase in street infrastructure levy
® 2.24% (20,247) increase in park infrastructure levy
a 5% (7,650) increase in EDA levy for redevelopment projects
o 5% (20,850) increase in HRA levy to achieve long-term funding plan
for scattered site housing program due to CDBG funding changes
I.7
10/5/2022
2023 Preliminary Tax Levy
Total tax levy includes:
Prior Debt Levies:
19 2015 City Center infrastructure
Bi 2015 Northwood South infrastructure
m 2016 Northwood North infrastructure
B: 2017 Police Department/City Hall
a 2018 Pool and Park
r 2019 Pool and Park
a Two of the bond debt levies are decreasing for a total of $2,993
a Four of the bond debt levies are increasing for a total of $12,063
a Overall, the combined debt levies are increasing by $9,070
11
Property Tax Levy
PROPERTY TAX LEVY -ALL FUNDS
COMPARISON OF PROPERTY TAXES
Change°of
2023 Increase / from To.
2022 Levied Reel—t d Decrease Prior Change
Prog—or servI e
Base Levy
General fund
$ 11,393,354
$ 12,076,955
S 683,601
6 00
3.75 "°
Sbeetknpmvements
1,617,735
1,698,622
80,987
5.00
0.44
Park Improvements n
904,938
925,185
20,247
2.24
0.11
Economic Development Authority
153,000
160,650
7,650
5.00
0.04
He using and Redevelopment Authority
417,000
417,850
20,850
5.00
0.11
DebtService
-
2015A GO T1F Bonds (City Center)
235,227
237,853
2,626
1.12
0.01
2015B GO Lnp Bonds(Northwoods South)
205,240
208,745
3,505
1.71
0.02
2016A GO Imp Bonds (Northwoods North)
262,502
263,709
1,207
0.46
0.01
2017A GO Bands (Police Depl/City Hall)
1,706,828
1,705,515
(1,313)
(0.08)
(0.01)
2018A GO Tax Abatement Bonds(Pool and Park)
862,739
867,464
4,725
0.55
0.03
2019A GO Tax Abatement Bonds (Pool and Park Ph, 2)
472,448
470,768
(1,680)
(0.36)
(0.01)
Total Property Taxes
$ 18,231,011
$ 19,053,316
$ 822,305
4.51
4.51 °
(1) Includes an increase of5%as the annual Park Infrastructure
Levy increase, plus an additional
$500,000 levy to support
Ice Arena deb[service.
12
l�
10/5/2022
Estimated Tax Impact
Median home value in 2023 is $325,000, which is an 18%
increase from 2022
Current estimated impact on residential homes based on
4.51 % increase in city tax levy is 8%
For homes valued between $150,000 and $400,000 the tax
increase estimate is $61 to $192.
2022 Market Taxable
Value of a Market 2023 $ Increase / % Increase /
Home Value 2022 Actual Estimated (decrease) (decrease)
$ 150,000 $ 126,300 $ 793 $ 854 $ 61 8%
175,000 153,500 964 1,038 74 8%
200,000 180,800 1,136 1,223 87 8%
225,000 208,000 1,307 1,407 100 8%
250,000 235,300 1,478 1,591 113 8%
300:000 289:800 1,821 1,960 139 8%
350000 344,300 21163 2,328 165 8%
400:000 398,800 2,506 2,697 192 8%
13
Tax Rate
Based on current information:
The city tax rate is projected to decrease from
62.826% in 2022 to
a 57.225% in 2023
® The total tax rate is projected to decrease from
138.107% in 2022 to
* 132.544% in 2023
2021 2022
2023
City Tax Rate 62,596 % 64826%
57.225%
HRA Tax Rate 1.344% 1.497%
1.535%
County Tax Rate 38,210% 3&535%
38.535%
School Tax Rate 25.529% 26.507%
26.507%
Other Tax Rate 8.598% 8.742%
8.742%
Total Tax Rate 136,277 % 138.107%
132.544%
*Amounts for County, School, and Other are estimates.
[ ,
14
7
10/5/2022
Summary
Staff feels this is a reasonable place to start for the
preliminary maximum budget and tax levy.
More detailed discussions to take place over next several
months.
Council needs to determine if preliminary budget/tax levy
is acceptable for September 12 Council Meeting where
maximum budget/tax levy will be adopted.
KER
15
I-1
MEMO
TO: TIM HOYT
FROM: VICKI HOLTHAUS - ABDO FINANCIAL SOLUTIONS
SUBJECT: SUSTAINABILITY OF ICE ARENA, GOLF COURSE, SWIMMING POOL, AND PARK
INFRASTRUCTURE
DATE: OCTOBER 4, 2022
Introduction
Upon your request, we have updated the long-term sustainability analysis of the Ice Arena, Golf Course, Pool, and Park
Infrastructure Fund.
Ice Arena
The question of sustainability would revolve around two different components of the business. The first component would
be revenue and the composition of that revenue. Staff has provided updated information on hours sold through 2021. A
summary of total hours sold is listed below:
YOUTH OTHER HOURLY OPEN OPEN SKATE
YEAR DIST 281 HOCKEY CONTRACTS RENTALS SKATE HOCKEY SCHOOL YR TOTAL
2021
630.00
1,423.25
2,141.50
-
82.50
- 139.00
14%
32%
48%
0%
2%
0% 3%
2020
198.00
1,139.25
1,492.00
-
59.50
- 96.00
2019
571.50
1,454.00
1,940.25
-
103.75
- 132.50
2018
576.00
1,442.50
1,908.42
87.00
- 137.75
2017
564.75
1,433.00
1,816.25
-
79.00
- 137.50
2016
534.00
1,349.25
1,437.25
12.00
94.50
- 140.00
2015
510.25
1,403.00
1,544.00
15.00
94.25
12.00 144.25
2014
504.75
1,399.50
1,570.75
13.50
90.50
9.00 146.00
2013
620.50
1,268.50
1,556.50
62.00
89.50
142.00
2012
513.25
1,219.50
1,526.75
82.75
88.50
- 127.00
4,416.25
2,984.75
4,202.00
4,151.67
4,030.50
3,567.00
3,722.75
3,734.00
3,739.00
3,557.75
Hours decreased slightly in 2016, due to the youth association cancelling their Junior Gold program and the cancellation
of two full weekend Showcase tournaments during summer months.
Over the last several years the hours have fluctuated depending on Showcase tournaments and Midwest Prep Elite
season and tournaments. Between 2015 and 2019, the number of hours used by District 281 for the boy's and girl's high
school hockey programs increased and use by youth hockey and other contracts continued to be strong. From 2013 to
2019, cash receipts increased from $866k to $960k. In 2020 cash receipts decreased to $581 k due to the impacts of
COVID-19.
In 2020, ice rentals and revenues were greatly impacted by COVID-19. The ice arena was closed for approximately 4
months. When open, guidelines for the facility had an impact to operations in terms of limited numbers of players,
participants and spectators allowed, reduced use of locker rooms, modified traffic patterns and increased sanitizing of
public use areas throughout the facility. Revenues were further impacted by the concession stand and dryland training
area unable to be used from mid -March through mid-2021, so the lease payments were not collected during that time. Ice
rentals in 2021 were strong due in part to the hockey season continuing later in the spring because of the arena being
closed in December 2020 (COVID-19). In 2021, cash receipts increased to $884k.
The second consideration for sustainability includes the expense side. Expenses for the purposes of sustainability include
operating expenses, payroll, debt service and capital needs. Operating would include all expenses to supply and operate
the facility. Payroll includes all staff time allocated to the Arena. Capital expenses include improvements greater than
$5,000 that have a useful life greater than one year.
The 2023 revenue budget is $1,439,355. The 2023 budget for operating expenditures is $2,478,733, with $1,338,100 of
that being for capital items. Recently, two large capital projects took place including the roof and skylight replacement for
the south rink in 2021 and the dasher boards and glass replacement for the north rink in 2022. The replacement of the
cement floor, dasher boards and glass for the south rink are scheduled for 2023. Due to the significant costs, the City
issued a loan from the Temporary Financing Fund to help fund the 2021 and 2022 projects. The City is planning on
issuing an additional loan for the 2023 south rink project.
Until 2013, capital costs were funded in the park infrastructure fund. These projections assume that all capital will be paid
for by the Ice Arena. This will have a significant effect on the overall cash flow. The scheduled capital through 2026 is as
follows:
Vearto
Replace
Item
2022 2023 2024 ?025 202
Estimated Estimated Estimated Estimated Estimated
Cost Amounts Amounts Amounts Amounts Amounts
2022
IA door security and security cameras
60,000
60,000
-
2022
IA HVAC upgrades
50,000
50,000
-
2022
IA replace dasher boards and glass (north rink)
210,000
210,000
2022
IA scoreboard (south rink)
25,000
25,000
2022
IA weight room upgrades
20,000
20,000
2023
IA compressors
26,500
-
26,500
2023
IA concession stand
36,000
-
36,000
2023
IA meeting room carpet
91600
-
9,600
2023
IA re -cement floor and replace glass and boards (south rink)
1,200,000
-
1,200,000
2023
IA skate tile
18,000
-
18,000
2023
IAwaterheaters
48,000
-
48,000
2024
IAbathrooms
50,000
-
-
2024
IA bleacher caps (south rink)
25,000
2024
IA HVAC (south rink)
50,000
-
-
2024
IA Zamboni room garage doors
20,000
-
-
2025
IA bleacher caps (north rink)
33,000
-
-
2025
IA HVAC (south rink)
50,000
-
-
2025
IA reader board
55,000
-
2025
IA skate tile for locker rooms
20,000
-
2025
IA system relief valves
8,000
-
-
2026
IA community room tile
22,000
-
2026
IA compressors
24,000
-
2026
IA HVAC
75,000
-
-
2026
IA radiant heaters (north rink)
30,000
-
2026
IA shower
20,000
-
50,000
25,000
50,000
20,000
33,000
50,000
55,000
20,000
8,000
22,000
24,000
75,000
30,000
20.000
City Management has modified the long-term plan for the Ice Arena and structured in transfers from the Park
Infrastructure Fund as well as financing assumptions for major capital improvements, in an effort to rebuild the operating
cash balance over the next ten years.
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Ice Arena Fund
2022 2023 2024 2025 2026
Total Revenues Total Expenses Cash and Cash Equivalents
In our experience with the majority of ice arenas, these facilities generate sufficient cash flow to cover operations, but
major capital will cause a shortfall. Introduction of a property tax levy to support ice, is helping to improve the Fund's
ability to cover operations, capital, and debt service needs.
Enterprise Fund Pro acted AtEwltv
2022 2023 2024 2025 2026
Estimated Estimated Estimated Estimated Estimated
Cash Flows from Operating Activities
Receipts from customers and users (enterprise assumption of 2 5% growth)
Payments to suppliers and employees (enterprise modified assumption of 2 5 % growth)
Net Cash Provided (Used)
by Operating Activities
$ 1,052,117 $ 1,078,420 $ 1,105,380 $ 1,133,015 $ 1,161,340
(839,738) (860.731) (882250) (904,306) (926,914]_
212,379 217,6BB 223,131 228,709 234.427
As a result, the City will continue to consider the following options to maintain sufficient reserves:
1. Annual re -prioritization of capital will continue to be done. This has been past practice and ensured the highest
need is presented prior to purchasing any item.
2. A Park Infrastructure Levy of $200,000 was implemented in the 2018 budget. It has increased $100,000 through
2021 to $500,000 and is expected to remain at $500,000 for 2023.
3. The proposed long-term plan for the Ice Arena Fund will require financing for major capital improvements. An
interfund loan from the Temporary Financing Fund was necessary in 2022 and another loan is expected in 2023.
The annual debt service, including interest, has been modeled into our analysis.
4. Continue to look at opportunities to generate additional revenue including grants and donations.
Golf Course
As discussed above, the sustainability question revolves around separate considerations for revenue and expenses. In
2015 and 2016, the Golf Course saw an increase in the rounds of golf played, but due to the wet weather and late
openings, rounds decreased in 2017-2019. In 2020, the impact of COVID-19 was a positive one for the Golf Course.
Although the number of rentals, tournaments and lesson registrations were reduced, the number of rounds of golf played
increased more than 50% compared to 2019. For 2021, the golf course continued to be busy with the number of rounds
played slightly higher than the 2020 rounds. In 2022, rounds have continued to be strong, but slightly lower than the
previous two years. Revenue from concessions, merchandise, cart rental and league fees continue to be higher than
budgeted and the clubhouse rentals have started to resume following the drastic reduction during COVID-19. The parking
lot agreement with Ironwood Apartments continues to be a successful source of revenue and was extended through
March 2025. The table below shows the number of rounds played from 2012 to 2022. Generally, the Golf Course has
been able to generate sufficient revenue to cover all operating and debt service needs.
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022(9120)
Rounds of Golf Played 19,568 16,782 16,431 18,190 20,375 18,662 17,800 16,837 26,553 27,654 21,268
4.2% -14.2% -2.1 % 10.7% 12.0% -8.4% -4.6% -5.4% 57.7% 4.1 % -23.1 %
The analysis of expense revolves around two areas - operating expense and planned major capital. Budgeted revenue
for 2023 is $396,150. Budgeted operating expenses for 2023 are $596,197. A capital budget of $116,000 is planned for
2023. As part of the 2023 budget, staff is also requesting the rehiring of the Golf Course Superintendent position. Due to
staff promotions, this position has been vacant since 2012.
Previously major capital was paid for out of the Park Infrastructure fund. As noted below, planned future capital could
result in an additional $539,500 of new costs to the Golf Course fund over the next 5 years, or an average of $107,900 per
year.
2022 2023 2024 2025 2026
Yearto Estimated Estimated Estimated Estimated Estimated
Department Replace Item Cost Amounts Amounts Amounts Amounts Amounts
Parks
& Recreation
2022
GC cash register S
5,000 $
5,000 $
Parks
& Recreation
2022
GC clubhouse update
20,000
20.000
Parks
& Recreation
2022
GC door security and security cameras
40,000
40.000
Parks
& Recreation
2022
GC golf cart parking area
20,000
20.000
Parks
& Recreation
2022
GC golf carts (4 of 5)
8,000
8.000
Parks
& Recreation
2022
GC misc equipment
6,000
6.000
Parks
& Recreation
2022
GC tee protector fence
6,000
6.000
Parks
& Recreation
2023
GC fire system
36,000
Parks
& Recreation
2023
GCfireplace
24,000
Parks
& Recreation
2023
GC golf carts (5 of 5)
8,000
Parks
& Recreation
2023
GC maintenance garage updates (doors and heaters)
30,000
Parks
& Recreation
2023
GC maintenance shop -paint
12,000
Parks
& Recreation
2023
GC misc equipment
6,000
Parks
& Recreation
2024
GC cart paths
20,000
Parks
& Recreation
2024
GC clubhouse exterior
10,000
Parks
& Recreation
2024
GC cold storage
63,000
Parks
& Recreation
2024
GC fencing
25,000
Parks
& Recreation
2024
GC golf cart lease (1 of 5)
10,000
Parks
& Recreation
2024
GC misc equipment
6,000
Parks
& Recreation
2025
GC clubhouse carpet
15,000
Parks
& Recreation
2025
GC fencing
25,000
Parks
& Recreation
2025
GC gas grills
7,500
Parks
& Recreation
2025
GC golf cart lease (2 of 5)
10,000
Parks
& Recreation
2025
GC irrigation pump and motor
20,000
Parks
& Recreation
2025
GC misc equipment
6,000
Parks
& Recreation
2026
GC fencing
25,000
Parks
& Recreation
2026
GC golf cart lease (3 of 5)
10,000
Parks
& Recreation
2026
GC misc equipment
6,000
Parks
& Recreation
2026
GC reader board
60,000
36,000
24,000
B4O00
30,000
12,000
6,000
20,000
10,000
63,000
25,000
10,000
6,000 -
- 15,000
25,000
7,500
1Q000
20,000
6,000
25,000
10,000
6 Ono
60,000
Fund
Cash Flows from Operating Activities
Receipts from customers and users (modified enterprise assumption of 5% growth)
Payments to suppliers and employees (modified enterprise assumption of 3% growth)
Net Cash Provided (Used)
by Operating Activities
2022 2023 2024 2025 2026
Estimated Estimated EsUrnared EstJmated Estimated
$ 343,573 $ 360,752 $ 378,789 $ 397,729 $ 417,615
29 677 304,547 313.684 094 787
47,896 56,204 65,106 7R.534 BM1.BYB
The current scenario is presented below. As discussed above, it is anticipated that revenue will be sufficient to cover
operations, but major capital will make it difficult to maintain adequate working capital.
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
6,4.
2022
Golf Fund
2023 2024 2025 2026
Total Revenues Total Expenses Cash and Cash Equivalents, December 31
Options to consider for addressing the golf course are listed below:
1. Sales have been increasing in the past two years, providing adequate cash flows for capital purchases. Should
trends change over time, Management may want to reconsider the timing of certain capital projects.
Swimming Pool
The outdoor pool was closed in 2018 and 2019 due to construction of the new city hall, aquatic facility, and Civic Center
Park improvements. The new aquatic facility was expected to be operational by June 2020, however due to COVID-19,
the opening was postponed. The Aquatic Park finally opened on June 5, 2021 and had a great first pool season. The
success of the new facility continued in 2022. The open swim daily attendance average increased from 260 in 2017 to 673
in 2021 and 676 in 2022. In addition to open swim, programs such as swim lessons, lap swim and water walking
continued to be offered. Local swim teams also rented practice time during the weekday mornings. And a regional swim
meet was held for three full days in July. The pool is considered to be a program within the City's overall parks and
recreation system, and such, the City provides general property tax support for the operation. The table below provides
sales data for 2015-2023. A 10-year capital improvement plan for the new facility is being developed now that the
construction is complete.
2023
2015
2016
2017 2018 2019 2020
2021
2022
Projected
Pool Passes Sold* 591
665
657
1,929
2,303
2.500
Pool Open Swim Total Attendance** 17,210
19,755
18,761 - - -
46,590
49,337
51,800
Pool Daily Admission Fees $ 21,910
$ 30,249
$ 27,727 $ - $ - $ -
$203,490
$ 190,752
$ 264,000
The analysis of expense revolves around operations. The overall operating expense budget for the swimming pool in
2023 is $703,750. The 2023 revenue is projected at $800,017. A contributing factor to the increase in expenses is
seasonal wages.
*Passes sold in 2015-2017 were family passes. In 2022, passes were sold individually.
**Ages 2 and older.
Park Infrastructure Fund
The capital budget for the pool and parks are included in the Park Infrastructure Fund. Capital expenses related to parks
infrastructure are summarized below. A 10-year capital plan for the pool is being developed now that the construction is
complete. Capital expenses related to the park infrastructure fund are summarized below.
2022 2023 2024 2025 2026
Year to Estimated Estimated Estimated Estimated Estimated
Replace Item Cost Amounts Amounts Amounts Amounts Amounts
2022
Parks EAB
100,000
100,000
-
-
-
-
2022
Parks concrete, trail work
75,000
75,000
2022
Parks Hidden Valley Parkplay equipment project
250,000
250,000
-
-
-
-
2022
Parks fighting improvements
100,000
100,000
2022
Parks maintenance (courts, equipment painting, benches and picnic tables)
80,000
80,000
-
-
-
-
2023
Parks EAB
100,000
-
100.000
2023
Parks concrete, trod work
75,000
-
75,000
-
-
-
2023
Parks Liberty Park play equipment project
200,000
-
200,000
-
-
-
2023
Parks lighted Baseball Field
828,000
-
828,000
-
-
-
2023
Parks lighting improvements
90,000
90,000
2023
Parks maintenance (Liberty Park basketball courts)
150,000
-
150,000
-
-
-
2023
Pool misc equipment
5,000
-
5,000
2024
Parks Cgyms pitching machines
5,000
-
5,000
2024
Parks EAB
100,000
-
-
100,000
-
2024
Parks concrete, trail work
60,000
-
-
60,000
-
2024
Parks fighting improvements
90,0
90,000
2024
Parks maintenance (courts, equipment painting, benches and picnic tables)
80,000
-
-
80,000
-
2024
Parks outdoor fitness equipment
49,000
-
-
48,000
-
2024
Pool misc equipment
5,000
-
5,000
2025
Parks EAB
100,000
-
-
100,000
2025
Parks concrete, trail work
60,000
-
-
-
60,000
-
2025
Parks hockey rink fencing
13,000
-
13,000
2025
Parks lighting improvements
90.000
90,000
2025
Parks maintenance (courts, equipment painting, benches and picnic tables)
102,000
-
-
-
102,000
-
2025
Parks picnic shelter at Northwood
200,000
200,000
2025
Parks Sun Shade at Victory Park Softball Field
85,000
-
85,000
2025
Pool miscequipment
5,000
5,000
2025
Parks Bocce Ball Courts/General Activity
30,000
-
-
-
30,000
-
2026
Parks EAB
100,000
-
100,000
2026
Parks concrete, trail work
60,000
-
-
60,000
2026
Parks lighting improvements
90,000
-
90,000
2026
Parks maintenance (courts, equipment painting, benches and picnic tables)
30,000
-
-
-
-
30,000
2026
Parks Sun Shade for Lighted Softball Field
88,000
88,000
2026
Pool misc equipment
5,000
-
-
-
5,000
$2,500,000
$2,000,000
$1, 500,000
$1,000,000
$500,000
$_
Park Infrastructure Fund
2022 2023 2024
L
2025
N
L
2026
Total Revenues Total Expenditures Fund Balances, December 311
Options to consider for addressing the Park Infrastructure fund are listed below:
1. Annual re -prioritization of capital will continue to be done. This has been past practice and ensured the highest
need is present prior to purchasing any item.
2. Financing for Ice Arena improvement projects may reduce the amount that will need to be contributed by the Park
Infrastructure Fund to support the Ice Arena's operation cash balance.
3. Additionally, intergovernmental revenue (grants) should be explored for eligible trail and other park
improvements.