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HomeMy WebLinkAboutAgenda Packets - 2022/04/04CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, April 4, 2022 6:30 p.m. ROLL CALL: Mueller, Hull, Meehlhause, Bergeron, Cermak Council Workshops are informal gatherings of the council at which no final decisions are made, rather consensus discussion to direct staff on council decision items. PUBLIC COMMENT Citizens may speak to issues not on tonight's agenda. Before speaking, please share your full name and address. Also, please limit your comments to three minutes. AGENDA ITEMS DISCUSSED BY CONSENSUS 1. 2023-25 Strategic Plan Final Review -Brian 2. Budget Discussion — Mark 3. H2 Flats Expansion — Jon 4. Community Gardens — Don & Nyle — General Discussion 5. City Communications — Nyle Verbal discussion NEXT EDA MEETING: Monday, April 11, 2022 at 6:00 pm NEXT COUNCIL MEETING: Monday, April 11, 2022 at 6:30 pm TOWN HALL MEETING: Monday, April 18, 2022 at 5:30 pm NEXT COUNCIL WORK SESSION: Monday, May 2, 2022 at 6:30 pm 6ca,rl-,�- M0_ iS WEW of Mounds View Staff R Item No: 01 Meeting Date: April 4, 2022 Type of Business Council Worksession City Administrator Review To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator Item Title/Subject: DRAFT 2023-25 Strategic Plan Introduction: The City is engaging in its 2023-25 Strategic Planning process. In order for staff to have time to include any Strategic Planning initiatives & capital expenditures into the 2023 Budget & CIP process the timing of completing the Strategic Plan update ideally should be updated by the April -June timeframe. Discussion: Each Council person was interviewed and asked a series of questions as it relates to the Strategic Plan update. Those responses were combined into one draft document. Many categories had two or more of the same or similar responses. For simplicity, duplicated responses were reduced to one main statement. The Council reviewed the Draft 2023-25 Strategic Plan at its March 7, 2002 Worksession. Any suggested edits have been completed. This is the second and final review before the new Strategic Plan is adopted. Strategic Plan Strategy/Goal: Complete the Final Review of the 2023-25 Strategic Plan. 1) Look for any content that may have been missed. 2) Ensure the content makes sense. 3) Look for any grammatical edits. As, this will become available to the public on the City's website and other areas. Financial Impact: Much of the Strategic Plan will require capital resources in order to successfully plan, implement, and successfully complete the overall Vision and Mission of the City. An overview of the main expenditures can be found in the "How We Get What We Want" section. This highlights the main Goals, Strategies, and Vision Statements for the 2023-25 Strategic Plan, Recommendation: Complete the Final Review. Once the Council is satisfied with the document, staff will prepare a Resolution for consideration at an upcoming City Council meeting. Respectfully, YY&44Vt_ Brian Beeman, MPA, CMC Assistant City Administrator ATTACHMENT(S): 1) DRAFT 2023-25 Strategic Plan The Mounds View Vision A Thriving Desirable Community bLa,xL IYABUS ....... ....... IQ$ . . . . . . . . . . 1% t., V wk 1 M 0 U-N Di1VIEW 2023-2025 Strategic Plan Amended & Adopted by City Council April 11, 2022 Resolution NO. XXXX for 2023 budget cycle 2019-2022 Strategic Plan Adopted by City Council January 28th, 2019 Resolution NO. 9069 for 2020 budget cycle Next Update: Anticipated to begin January -February 2025 with City Council, February -March 2025 with staff and April -Irl C CoUnl'I OesolU`;on to hn tiJ-d fnr th= 06 -r--nary budgets. LVJI_ I IN LILV - Y - The City's Strategic Plan is used as a guide to develop the annual budgets and five-year Capital Improvement Plan (CIP). In 2022 the Mounds View City Council had a General fund operating budget of $8,302,782 with net assets of $9,343,765. The City Council sets the overall policy for the City whereby many of the City's Commissions/Committees and departments seek to accomplish and fulfill those policies through major themes, strategies, the Council's overall vision, established goals, departmental action steps, and assigned tasks. Strategic planning addresses, who we are, what we want, and how we get what we want. CITY OF MOUNDS VIEW STRATEGIC PLAN Vision Misson Core Values Brand Promise Major Themes Vision Statement Strategies Strategy: Property Tax Levy Limitation Strategy: Infrastructure Improvement Strategy: Community Engagement Strategy: Implement HR Policies Strategy: Positive Business Climate CITY OF MOUNDS VIEW 3 STRATEGIC PLAN idllo ear `+;�/i4k�r tyr .ram i '�`►^ .*ter ����� ��-'Fib "•:, #���r f • ha STRATEGIC PLAN 2023 - 2021) WHO WE ARE A THRIVING DESIRABLE COMMUNITY PROVIDE HIGH QUALITY PUBLIC SERVICES IN A FISCALLY RESPONSIBLE MANNER General —Transparent, Honest, Responsive, Efficient, Practical, Service oriented People — Respectful, Responsible, Friendly, Helpful, Knowledgeable, Team Players Market: We serve 13,249 residents and 5,207 households (US Census 2020) within an area of 4.03 square miles (US Census) and 21,278.4 acres. Brand Promise: Strategically located near main transportation corridors in the renowned Mounds View School District; residents, workers, and visitors, will enjoy a livable/walkable/business friendly community that is safe with reliable infrastructure, and reasonable taxes. Elevator Pitch: The City of Mounds View is a third ring suburb of diverse residents with a population of 13,249 located 10 miles north of Minneapolis and St. Paul in Ramsey County and surrounded by the Cities of Blaine, Arden Hills, New Brighton, Fridley, and Spring Lake Park. We are known for our large residential lots, mature trees, and excellent school district. Tagline: Solving, Helping, Serving CITY OF MOUNDS VIEW 5 STRATEGIC PLAN STRATEGIC PLAN 2023 - 2025 Where we are going The five most important characteristics or strategic policy areas of Mounds View 1. Financial Stability 2. Maintain good Infrastructure: Public Transportation, City Street Program, HOPP Program, County Owned Roads, Trails, Parks, Internet Access/Connectivity, Met -Council Waste -Water Charges & Storm water Management Plan 3. Demographics: Diversity & Outreach. More Participation from Diverse Population 4. Employee Recruitment & Retention 5. Business Retention & Expansion, Housing Stock, Affordable Housing, Absentee Landlords A vision statement is an outcome, a result, and an ideal to strive for over a period of time. The following vision statements define the future of Mounds View. ■ Financial Stability ■ Maintain good infrastructure in such a way that is walkable & attractive, safe, and affordable, Unit all facets of City, City service and a memorable city with good transportation options, ensure entire city is well connected with trails for walkability and ridership, ensure parks are well maintained with variety of amenities. ■ A progressive City that is open and welcoming, and a desirable destination to all ages and cultures, who seek progress through partnerships, and a place where residents can work, live, and play safely and show pride in the community, Stable socially & fiscally, with an adequate amount of Affordable Housing ■ Create a culture where employees desire to work and remain employed with Mounds View, Seeing Challenges as Opportunities and ensuring adequate staffing Create and maintain a positive business climate where businesses want to locate and remain in Mounds View, Make it appealing and easy for those raised here want to come back, improve and beautify Mounds View Boulevard, continue with a good BR&E program, focus on redevelopment efforts CITY OF MOUNDS VIEW 7 STRATEGIC PLAN Strategies are combined and synthesized from the overall themes. These strategies form the basis for the goals and action steps. (3 Year Target) ■ Address the property tax levy limitation on inflow & infilatration, & keep the same level of service while --- -- -- - rr+onitor1ng expenses, expdrid-oi-i-Cit�L-Strerlg-tl-is Ake-splash-pad,-La-ndlardf,to_takL--:care--o:EprQperties}----- ensuring they are following codes and rules, and forcing them to keep up maintenance. Consider more townhomes and Affordable Apartments and other housing options. ■ Maintain and plan for infrastructure improvements including waste water, water, & transportation, r..nntinue with city-wide levy system for streets vs. going back to the assessment process, ensure entire city is well connected and walkable and consider improving transportation options and programs, explore how to make intersections more pedestrian friendly, develop a city-wide walkability and safer intersections plan, consider more parks amenities, especially at Silverview Park, consider adding more amenities around splash pad and alternate play equipment for special needs children & develop a parks funding plan, Consider ways to make MV parks more of a destination. Ensure an efficient city- wide garbage collection system. ■ Increase community engagement while being sensitive to the changing demographics & their needs and inclusive to all socioeconomic situations, provide the MVPD freedom to do outreach as they did pre -pandemic like New Americans Academy, CPR training, climbing wall, Shop With a Cop, National Night Out, neighborhood outreach, walking and driving neighborhoods handing out police badge stickers to kinds & other activities. Addressing speeding, develop other community outreach programs and consider a full-time Community Relations/Outreach officer, consider increased funding for police training. CITY OF MOUNDS VIEW 8 STRATEGIC PLAN I ri ■ Implement HR policies to recruit and retain staff and provide growth opportunities by making salaries competitive and equitable, and creating an enjoyable working environment and equitable pay. ■ Continue BR&E program, maximize utilization of development space and current list of available sites, encourage land owners to maintain their properties, & consider residential redevelopment, thriving small businesses with neighborhood appeal, increase the EDA levy to at least $150,000 or more as well as the HRA fund to have funds ready for redevelopment projects and housing rehab program & replacing older housing stock by identifying which homes are in need of demolishing or rehab, keep supportingTIF as an economic development tool, reconsider existing housing loan programs by reducing interest rates. CITY OF MOUNDS VIEW 9 STRATEGIC PLAN kp STRATEGIC PLAN ' How we get there Vision: FINANCIAL STABILITY, STRUCTURALY BALANCED BASED ON TRADITIONAL SOURCES THAT FUND THE NEEDS OF THE COMMUNITY WITHOUT RELYING ON THE LEVY REDUCTION BALANCE ASSIGNED WITHIN THE GENERAL FUND AND LGA ElStrategy: Address the property tax levy limitation in the City Charter, educate residents on Inflow & Infiltration, & keep the same level of service while monitoring expenses. CITY OF MOUNDS VIEW 11 STRATEGIC PLAN { Goals: 3-5 goals per vision in table format. Every goal should be SMART. Specific, Measurable, Achievable, Relevant, & Time bound. Start,Vailu'p, Current Value Targe't Value Modify Charter Cap: Change the 2% plus Inflation 2% plus inflation or 2% plus inflation or 6.5 % simple majority or 5% whichever is less and increase to 9%, then 5% whichever is less 5% whichever is less up to 9 % with super address competitive service & staffing issues ` majority of inflation if greater Enhance Revenue Sources: Without relying on Franchise fee $295,000 property. Taxes & keep taxes reasonable and Other fees & charges accountable $635,000 Prioritize Services: and eliminate low priority ID by department services r Increase EDA Levy: Spur Redevelopment to ? $100,000 increase tax valuation, add jobs & housing diversity, consider increasing to $150,000 or more as well as HRA levy OperiR under balanced -budget that meets the needs and goals of the community_ Reduce reliance upon the levy. Reduction fund and any LGA funds by 3-556. Deficit Fund: Reduce the fund by SO% to $120,000, then put golf course Money to something else. Use the spenddown on infrastructure related projects or Community Center maintenance etc. Develop Communications Plan to educate residents & on the seriousness & impacts of the Charter levy limitation then present at joint meeting and/or education materials, Once Maintain the HOPP Program, develop information PR & Implementation Plan to residents and businesses that addresses the consequences of inflow & infiltration & ways to help reduce and/or eliminate the extra water capacity with a goal of reducing the costs that Met -Council invoices the City by at least 2-3% annually Budget--90P/a of LGA down levy reduction by $250,000 $0 $972,249 Slip lining $175,000 Franchise fee $326,000 Other fees & charges $727,000 Franchise fee $335,000 Other fees & charges $750,000 ID by department ID by department $100,000 $150,000 EDA Max levy $246,494 HRA Max levy $251,484 -8udget9G'X of Reduce .by.5-8% LGA Draw down I ($4000-$6,400) per/ levy reduction by I year over 3 years, will $238,000, 2022 take 10 years to get to $120,00 $120,000 $0 $10,000 plus staff time with minimal supplies $1,082,918 2022 Slip lining $175,000, City is about 80% lined $1,200,651 by 2025, j assumes 3.5% cost increase for MCES charges and 10% `reduction in volume. 100% lined by 2025 Fla MAINTAIN GOOD INFRASTRUCTURE IN SUCH A WAY THAT IS WALKABLE & ATTRACTIVE, SAFE AND AFFORDABLE. Maintain and plan for infrastructure improvements including waste water, water, & transportation, Start Value Current Value Targetj;±nd Value 400 000 $4.79 mill Maintain a $150,000 Street fund levy vs. having assessments for seal coat & overlay etc. Refine the 10 year maintenance and infrastructure program, Improve the streets that haven't been addressed to date Maintain parks, expand trails/sidewalks, and park programs & Community Center & beautification of Mounds View Boulevard, consider other areas of the city to connect and add additional trails and walkways. ID needs & funding sources for transportation, work with MTA on commuter shuttles to get to larger hubs, and longer hours so residents aren't stranded, ensure MV has good public transportation options ID all County owned roads and cooperate with the County to find ways to improve the aesthetics and _amenities for pedestrians and transit options Explore ways to improve high-speed internet options & accessibility City-wide then propose a feasibility plan to implement Start Value $0 Educate residents on Inflow & Infiltration, Ensure continued timely snow removal & city-wide side walk snow removal Ensure Clean Water & maintenance E $0 ID and expand on City's strengths to include splash pad, community center, & MV Blvd improvements by adding additional amenities, features, appearances, etc. Engineering & design $400,000 for water treatment upgrades $150,000 part of 2022 levy Trail segment 8: $290,000 must ID funding source. (Included in Street Project) Unknown Current Plan $4.5 mill for three ater treatment plants over 2019-21 i CITY OF MOUNDS VIEW 13 STRATEGIC PLAN Complete City-wide slip lining within 3 years if feasible Expand & continue HOPP Program with apartments & businesses Developing overall storm water & maintenance plan IQ attractions that are destinations in order to eliminate Mounds View as a just drive though suburb, make it appealing and easy for those � who grew up MV to be able to move back. cx: (Obstacle course, autistic park features, other water features, explore possibility of converting existing ponds to fishing ponds and piers, a museum/veterans memorial tribute, other sports or expanded sports facilities, etc.) $154,000 2022 CITY OF MOUNDS VIEW 1.11 STRATEGIC PLAN �i DEMOGRAPHICS: A PROGRESSIVE CITY THAT IS WELCOMING AND A DESIREABLE DESTINATION, TO ALL AGES AND CULTURES, WHO SEEK PROGRESSTHROUGH PARTNERSHIP, AND A PLACE WHERE RESIDENTS CAN LIVE, WORK, AND PLAY SAFELY AND SHOW PRIDE IN THE COMMUNITY. Strategy: Continue community engagement while being sensitive to the changing demographics & their needs and inclusive to all socioeconomic situations. $2000 plus staff time $147,000 plus staff time Maintain $147,000 plus staff time Start Value Continue enforcement & responsiveness to drug $0 problem, traffic, code violations, & petty crimes & support 2nd K-9 unit. Community Outreach Programs: Continue with pre- $2000 & staff time COVID levels of diversity Event(s) & good Public Relations ex: (New Americans Academy, CPR Training, Climbing Wall, Shop with a Cop, National Night Out, Pre - party, Cooperative outreach with Fire Dept. and Allina Ambulance, business security walk-throughs and new officer familiarity with business layouts, resident security systems workshop/seminar, etc. ID other community outreach programs that isn't so reliant upon the PD and its resources, utilize Community Center & its programs or new programing, Parks, and other venues Expand on New Americans Academy and Pre Party for Night to Unit, as well as ID & creating regular meeting ` with Neighborhood Captains program ID & create regular meetings with neighborhood I Staff time Captains Speeding: Address the speeding issue by potentially TZD grant $106,000 closing some streets, adding speed bumps, and Purchase additional communicating to the public the PD is stepping up its speed sign: $3,335 speed enforcement, advertise the actual fines in the Newsletter, and come with a catchy slogan similar to "Click it or Ticket' only for speeding. "Obey the sign or Pay the Fine." VCET officer $132,000 Maintain dog & 2nd dog $20,700 training, annual both dogs $6,050 $15,000 & staff time Maintain Staff time Maintain $106,000 $106,000 I 1 j i CITY OF MOUNDS VIEW 15 STRATEGIC PLAN CREATE A CULTURE WHERE EMPLOYEES DESIRE TO WORK AND REMAIN EMPLOYED WITH MOUNDS VIEW. rI Strategy: $6,500 Implement HR policies to recruit and retain staff and provide growth opportunities by making salaries competitive and creating an enjoyable working environment. 565,850 Recruitment of Qualified Diverse workforce Update Personnel Manual Cnmpe.titive Salary & Benefits Packages, Training & EDU Related to Employee Job & Leadership, etc., Promotion Opportunities, Other Creative Incentives $197,550 Stort V $o Staff time as needed some legal $0 Market study done in 2017 for 2019 implementation $31,500 Staff time as nPede.d some legal $65,850 market adjustments & staff promotions Maintain Maintain Market study in 2021 for implementation in 2022, review city contribution for benefits for market CITY OF MOUNDS VIEW 16 STRATEGIC PLAN CREATE AND MAINTAIN A POSITIVE BUSINESS CLIMATE WHERE BUSINESSES WANT TO LOCATE AND REMAIN IN MOUNDS VIEW, Continue BR&E program, maximize utilization of development space and updated list of available sites, & consider residential redevelopment. $108,665 $110,165 $120, 080 • . N Start Value Current Value Target Value Fill Vacant Space & Continue BR&E Program $108,665 Personnel costs Personnel costs $108,665, $118,445, & $1,635 _ Advertising $1,500 Advertising Support Redevelopment & Development Recruitment $50,000 Gen fund $50,000 Gen fund Maintain Staff time Efforts transfer transfer to support _ ED activities Finance Top Redevelopment Areas Industrial/ $212,000 fund balance Fund balance at end $570,000 fund Commercial/Residential of year $1,237,489 balance, (Adding cash balance $90,000 p/yr) plus ($881,501) proceeds from Crossroad Pointe Thriving small business neighborhood appeal: Support through Forgivable Loan program, setting aside land for service oriented business like convenience stores or similar in residential neighborhood areas Townhomes that are more financially appealing than single-family homes or apartments: Identify and set aside strategic lots within the City like the Sham O Kennel lot, Arden Park Redevelopment area, and MV Square. Ensure townhomes are integrated into the neighborhood with proper style and landscaping Strategize how to attract new higher -end restaurants and how to keep them here CITY OF MOUNDS VIEW 17 STRATEGIC PLAN HOUSING & CODE ENFORCEMENT & MOUNDS VIEW BOULEVARD. Strategy: 1 Address Absentee Landlords, Attract Affordable Housing Opportunities, Aggressive Code Enforcement, Encourage land owners to maintain their properties. $0 $0 $0 Start ValuP . Address Absentee Landlords, enforce aggressive code , $0 enforcement with landlords and homeowners, Ensure i land lords Lake care of their properties. rorce land lands and homeowners to upkeep and maintain their properties _ Beatification of Mounds View Blvd: Cooperate with $00,000 Gen fund Ramsey County in implementing new features and improved beatification, aesthetics, and landscaping including but not limited to different plant species in median that looks professional, clean, and neat. Conduct and budget for improvements in phases and l use Hwy 96 as an example Affordable Housing; Ensure the attraction of new low- income housing opportunities _ Ensure Housing Rental Program is robust, easy for { landlords to understand and follow and apply to and enforce. Consider a facade and landscaping policy that is more robust while allowing for native pollinator plant species and other alternative landscaping that looks i professional and pleasing including but not limited to urban gardening and creative energy saving projects i Personnel costs $0 ! Personnel costs $0 $00,000 Gen fund Maintain Staff time CITY OF MOUNDS VIEW 18 STRATEGIC PLAN MOU-NMtSiEvv City of Mounds View Staff Report Item No. 2. Meeting Date: April 4, 2022 Type of Business: Council Work Session City Administrator Review: To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Discussion of Priorities for the 2023 General Fund Budget City staff has been busy working on the details of the 2023 budget. This item is placed on the agenda to give the City Council and residents the opportunity to provide input to staff early in the process. Department Heads can then use this guidance as they work on the details of their proposed budgets. General Fund 2022 Budget by Type Personnel 62.1% 5,156,363 Contractual services 21.3% 1,770,483 Capital outlays 1.0% 84,630 Supplies 4.3% 358,290 Transfers 9.3% 775,000 Firedebtservice 1.9% 158,016 Total 100% 8,302,782 General Fund 2022 Budget by Function Police Public Works Parka nd Recreation Fire (SBM) Community Development Administration Finance Centra I Services Debt Service (Fire bonds) Misc. Contracual Service Legislative Transfers to other funds Total General Fund 2022 Budget by Revenue Source Taxes (property) 68.35% 5,512,104 Other taxes (hotel, mfg home) 0.94% 76,000 Intergovernmental 15.71% 1,267,202 Franchisefees 3.78% 305,000 Licenses and Permits 3.14% 252,872 Charges for Service 0.62% 49,625 Fines and Forfeits 0.42% 33,750 Investment earnings 0.99% 80,000 Miscellaneous 3.40% 274,221 Transfers In 2.65% 214,008 Total 100.00% 8,064,782 43.8% 3,637,988 10.6% 883,763 6.9% 571,661 6.9% 573,082 6.1% 504,002 4.5% 377,374 3.7% 306,457 3.9% 321,430 1.9% 158,016 1.3% 107,206 1.0% 86,803 9.3% 775,000 100% 8,302,782 Key 2023 Budget Issues: The February state budget forecast projects a surplus of $9.2 billion for the current biennium (July 1, 2021 thru June 30, 2023). Local Government Aid was projected to increase minimally. In our case, the 2023 amount was estimated to be $857,240 under current law compared with $850,373 in 2022. Future economic conditions may change this and we will have to wait for the legislature as no budget items have been passed. The state legislature is scheduled to adjourn on May 23. The City Council budgeted for 90% of anticipated LGA for 2022 to guard against any legislative cuts or economic weakness associated with the state budget. Inflation has accelerated and is elevated at present. (7.9% February) The Federal Reserve projects inflation to remain elevated for several years but not at the current level. The City's charter cap was recently amended to give the City Council more flexibility to respond to the growing challenges the City faces. The charter cap excludes debt service levies, voter approved levies, and capital project levies from inclusion in the cap calculation. A 1% levy increase would generate an additional $61,789 in tax revenue. Property taxes account for 68.35% of General Fund revenues and operating transfers in. Ramsey County will provide preliminary 2023 values and projections in late August. The City will be negotiating contracts with the two police unions and the public works bargaining group. It is unknown at this time what requests the unions will have. The contracts provided for a 3.0% cost of living adjustment in 2022. This will be the most impactful item on the future budget. 14 employees will receive step or longevity increases in 2023 of 2%to 10% in addition to a COLA. Health insurance premium increases are capped at 7% but could be less, we are considered a large group for 2022 and 2023 (experience rated premiums). We will receive our rate notice in September/October. The impact to the budget will_depend_upon_the-size of_the unknown_rate_increase. The -Cos health insurance contribution was unchanged in 2022 at $1,170 per month compared with $15 increase for 2021. The Council initiated an HSA contribution for employees with family coverage similar to single employees of $200 per month, this made the city more comparable with other cities. The employer's share of PERA will remain at 7.50% for General (non -police) plan members, the PERA General rate has increased from 5.53% in 2005 to 7.50% in 2015. The Police plan will remain at 17 7% The police PERA rate has increased from 9.3% in 2005 to 17.7% in 2020. Current PERA pensions are funded at 87.00% for General Employees Retirement Fund and 93.66% for Police and Fire Retirement Fund. A liability has been recognized in the entity -wide financial statements, (General $1,311,028, Police 1,336,148) as a result of implementing GASB Statement 68. The state legislature controls the resolution of the underfunded pensions. The payroll cost for 54 FT, 8 PT, 9 PW's seasonal employees, and 10-15 Recreation seasonals is $3,529 per hour, $28,232 per day, $141,160 per 40 hour week and $7,340,728 per year. Work comp will increase by $63,998 due primarily to an increase in public safety rates which accounted for $55,033 of the total. Overall, pay and benefit costs will increase by approximately $386,180 across all funds and $301,057 for the General Fund. County dispatch fees were $99,274 in 2022. The 2022 fee decreased $2,779 or 2.72% from the prior year, we have not received the 2023 amounts. The Fire department will have a 3% to 5% increase in operating costs and a larger capital outlay expense for 2023. Our share has been mitigated somewhat by a switch to a fixed percentage formula going forward and retirement of the SLP Equipment Note. (2022 — 15.5%, 2021 — 15.5%, 2020 — 15.998%, 2019 — 16.373%, 2018 — 16.158%, 2017—15.819%) Information technology costs (phones, computers, copiers, cameras, squad computers, network switches, desktop services, virtual servers, internet, email, software, laserfiche, anti -virus, VPN connections, and facility WiFi) will increase by 5-7% due to additional services and transition to a joint powers entity away from the City of Roseville. This moves Roseville employees to the joint powers entity for long term stability and continuity. This continues to be an excellent value for the City. Fuel prices were budgeted at $2.75 unleaded and $3.30 for diesel for 2022, with the current economic conditions staff is recommending $3.75 and $4.50 for 2023. Overall most revenues that are tied to economic activity will be improving over 2022. Investment income will increase modestly in 2023 as a result of Federal Reserve activities. The franchise fee rate is at 4.00%, the revenue is split between the General fund and the Street Improvement fund. 2021 General Fund unassigned fund balance is $5,037,325 this represents 62.46% of 2022 budgeted revenues and transfers compared with 63.50% for the prior year. The General Fund also has Assigned fund balance for Levy Reduction of $4,835,391, and $238,000 to balance the subsequent budget. It has been the Council's policy to draw down the levy reduction funds over time. The City Council is updating the current strategic plan for 2023 thru 2025. One of the City's strategic goals is to develop a balanced budget and reduce reliance on the Levy Reduction Assigned Fund balance by 5% to 8% for 2023 thru 2025. The General Fund deficit will be $500,000 to $600,000 this will be partially offset by the drawdown of assigned (levy reduction) funds of $232,000 which reflects the strategic goal. This will leave a deficit of approximately $268,000 to $368,000 before considering any expenditure reductions, use of fund balance or a levy increase. Conclusion Staff is looking for direction from the Council on priorities for the budget and property tax levy. The above items are some of the issues that will drive the 2023 budget and are presented for your consideration. Respectfully Submitted, Mark Beer 6ja-"r.A- MOUNDS VIEW of Mounds I/iew Staff R To: From: Item Title/Subject: Item No: 03 Meeting Date: April 4, 2022 Type of Business: Work Session City Administrator Review: Honorable Mayor and City Council Jon Sevald, Community Development Director H2 Flats Expansion Introduction: The new owner of Scotland Green apartments (now H2 Flats), is requesting a CUP to construct a Club House. Plans are being provided to the City Council for comments, prior to the Planning Commission's review (April 20, 2022). Discussion: H2 Flats was built in 1972, and includes 11 buildings, totaling 385 units. In 1978, the owner proposed to build indoor and outdoor recreational facilities.' The outdoor sport courts were built. The recreational building was not. The current plan is to; (1) remove the outdoor sport courts, to be replaced with sod, an a garden; and (2) build a "club house" to include administrative offices, co -working space, and a recreational room. The building will be in the same location, as proposed in 1978. A Conditional Use Permit (CUP) is required for the expansion of a Multi -Family facility.2 Staff review is in -progress. The CUP will be reviewed by the Planning Commission on April 20tn, and the City Council will conduct a Public Hearing on April 251n Strategic Plan Strategy/Goal: Support Redevelopment & Development Recruitment Efforts. Financial Impact: N/A Recommendation: The Council is requested to make any comments or request any changes. The sport courts are in poor condition, and were built prior to Silver View Park being developed. The park has duplicate facilities. The Council should consider what amenities would be expected if a new 385 unit apartment building were built. Respectfully, Jon Sevald, AICP Community Development Director ATTACHED Site Photos Project Description, March 10, 2022 Plan Set, March 10, 2022 ' Planning Commission minutes, May 10, 1978. 2 City Code 160.133(D) (Conditional Uses; Multi -family dwelling) Item 03 Page 2 of 2 Site Photos H3 Flats. Open areo is location o/'proposed Chrb House (photo Morch 31.2022) H_' Flat.v. Sport C our(s !n be entoFerl Inhctn ,March 3 /, _70?2), r Paul Meyer ARCHITECt5,1NC H-2 Flatts, LLC Proposed Clubhouse Building Project Description March 10, 2022 H-2 Flats, LLC is proposing a new building, approximately 4,285 sq. ft. in size that will contain an office suite for on -site property management. Also included in the building is a co -working space and a fitness center for the residents, along with a package delivery room. The proposed building will be located between the 2662 building and County Road H2 where a similar building was planned when the apartments were built, but was never constructed. As part of the proposed improvements, H-2 Flats, LLC will be removing the neglected basketball and tennis courts from the northwest part of the property. These will be replaced with green space and pollinator friendly planting beds. Additional landscaping exceeding the minimum standards is proposed in the construction area around the clubhouse. The 8 existing trash enclosures on the site, which contain one dumpster each, will be removed, replaced, and upgraded. A total of 10 new trash enclosures are proposed, nine of which will house both a trash dumpster and a recycling dumpster. The 10th enclosure will house a single trash dumpster. None of the new enclosures will be adjacent to a building or garage. Existing wide parking spaces will be restriped to 9' wide wherever possible to make up for parking spaces lost for the proposed improvements. The 89 existing garage spaces will remain as -is. The number of striped spaces will decrease by one. 21 new parking spaces will be added at the clubhouse building, with the provision of 18 additional proof -of -parking spaces. 15650 36TH AVENUE NORTH, SUITE 170 PLYMOUTH, MINNESOTA 55446 TEL 763 557-9081 / FAX 763-557-9233 PAUL MEYER ARCHITECTS COM n z x o z L L 9 Y, Nwq 'mom %pu m *N PAIS MOIA spunoIN odes ....... SIV-1:1 Z-H JOJ Gsn04qnID posodOJd -IN Ine,10 KV puYrna � W ELM NWT-GIAspunoW 10�51e f5 y w� PM6 mClA sputlu" OECZ _..�, . - s • SITU Z'H i■ 'i i i i 7'i t :A0-1 ssno44nIA Posodoid 12 U199 Nw 'IAGIA RPunayY 8 w S1VId Z-H M :Joj aana44n17 aaaodwd �k• I.1 �I�_ I'. l n $ m M. 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