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The 2021 HRA Budget and Levy cost driver is substantially personnel and professional costs. Therefore the proposed Levy increase for the HRA is 6.75% or $12,500. The 2021 Debt Related Levies are proposed to increase by $0 over the 2020 combined levies. A debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in levies created by the annual street reconstruction plan. Without the use of resources committed to this program the impact of 2020 street bonds issued along with existing debt service requirements would have required a 10.42 % increase in the overall Levy. The 2021 Capital Improvement Program (CIP) and the 2021 Building Improvement Levies annually proposed increases of $25,000 and $5,000 respectively are being deferred for 2021. Adjustments have been made to CIP and Building Improvement replacement schedules to make the zero levy increase in these capital improvement funds possible. For 2021 a levy to support Infrastructure improvements is proposed at $60,000. As discussed earlier specific costs supported by the general Fund levy in 2020 will now be supported by the Infrastructure levy in 2021. Therefore there is no overall levy increase due to establishing an additional capital fund levy. 2020 CARES Act funding The City has received CARES Act funding to reimburse the City for necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19). The COVID -19 costs incurred or are in progress include: • Personal protective equipment, sanitizers, and similar supplies. • Modifications to facilities for social distancing / protective barriers. • Modifications to facilities HVAC systems to provide an ionization process to which eliminates viruses from the air exchange. • New Technologies to provide online ordering and curbside pick-up at the Liquor stores, added modules to financial software for the licenses, permits and inspection to provide for contact free processing. • Computer equipment to enable efficiently in working remotely. • Employment costs incurred to reduce the employee’s exposure to COVID-19. • First responder costs in a COVID-19 environment. Covid -19 expenditures in 2020 are not expected to negatively affect the current budget process. Upcoming Budget meetings At the September 8, 2020 City Council meeting, Staff will present the preliminary 2021 Budget and Property Tax Levy to the City Council for approval. At this meeting a resolution will need to be passed certifying the preliminary levy to Hennepin and Ramsey Counties. The final presentation of the 2021 Budget and Property Tax Levy is scheduled for the December 8, 2020 Council Meeting. At the meeting, Staff will present a recap of the 2021 Budget and the impact of the 2021 Property Tax Levy. 21