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CC WORKSESSION PACKET 07072020
If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612-782-3313 or email city@savmn.com. People who are deaf or hard of hearing can contact us by using 711 Relay. Work Session Agenda Tuesday, July 7, 2020 5:00 p.m. 1. 2021 Preliminary Budget and Levy. Mark Casey, City Manager and Shelly Rueckert, Finance Director presenting 2. Public Safety Commission. Mark Casey, City Manager presenting 3. Mayor & Council’s Responses to Media and Community Inquiries. Mark Casey, City Manager presenting 4. Council Meetings – Live or Zoom. Mark Casey, City Manager presenting 5. Organized Collection. Mark Casey, City Manager presenting 6. Good Friday & Columbus Day. Mark Casey, City Manager presenting 7. Affordable Housing. Mark Casey, City Manager presenting 8. Future Work Session Dates, Times and Agenda Items. Mark Casey, City Manager presenting - Date for Zoom Meeting with Congresswoman Omar 9. Adjournment City of St. Anthony CITY COUNCIL WORK SESSION Minutes June 15, 2020 Present: Mayor & Council Randy Stille, Mayor; Bernard Walker, Councilmember; Thomas Randle, Councilmember; Wendy Webster, Councilmember and Jan Jenson, Councilmember. Absent: None Staff: Mark Casey, City Manager and Charlie Yunker, Assistant to the City Manager Consultants: Keith Dahl, Ehlers and Steve Grittman, NAC Guests: Robert Wall, Development 65 and Link Wilson, Kaas Wilson Architects Call to Order: Mayor Stille called the Work Session to order at 5:30 p.m. Development 65 Tax Increment Financing (TIF) Proposal: Dahl reviewed an analysis of the financial request and recommended $1.5 million in TIF over a 6 and half-year term. Approximately half of that amount would go toward providing 5% affordability. Wall & Wilson reviewed the project. Wall requested additional TIF. Council stated the potential interest in assistance for the underground water retention tank if proven to be an area benefit beyond the site. In regards to purchase price, the council expressed no interest in TIF assistance. In regards to parking, council questioned the need to move a portion of the surface parking on the west side of the building to underground verses moving the surface parking to the east side of the building. Adjournment: The meeting adjourned at 6:36 p.m. Respectfully submitted by Mark Casey, City Manager. City of St. Anthony CITY COUNCIL WORK SESSION Minutes June 15, 2020 Present: Mayor & Council Randy Stille, Mayor; Bernard Walker, Councilmember; Thomas Randle, Councilmember; Wendy Webster, Councilmember and Jan Jenson, Councilmember. Absent: None Staff: Mark Casey, City Manager, Charlie Yunker, Assistant to the City Manager, Nicole Miller, Administrative Services Coordinator, Jon Mangseth, Police Chief, Jeff Spiess, Police Captain, Jeremy Gumke, Public Works Superintend, Mike Larson, Liquor Operation Manager, Kevin Morelli, Assistant Liquor Operations Manager, Shelly Ruecker, Finance Director, Ka Vue, Assistant Finance Director, Mark Sitarz, Fire Chief, Chris Fuller, Assistant Fire Chief, and Janet Kimmel, Communications Coordinator Consultants: Steve Grittman, Planner (NAC), Justin Messner, Engineer (WSB) and Katie Koscielak, Assistant City Engineer (WSB) Commissions: Marcey, Planning Commission Chair and Therese Bellinger, Parks & Environmental Commission Chair Call to Order: Mayor Stille called the Work Session to order at 7:00 p.m. Tour of the City: The entire group conducted a virtual tour of the city covering thirty-four areas of interest. Adjournment: The meeting adjourned at 8:33 p.m. Respectfully submitted by Mark Casey, City Manager. 1. 2021 Preliminary Budget and Levy CITY OF ST. ANTHONY VILLAGE 2021 BUDGET OVERALL LEVY *2021 OVERALL PRELIMINARY LEVY 2020 $ Change 2021 % Change General Fund 4,571,013$ 183,637 4,754,650$ 4.02% HRA Fund 185,064 12,500 197,564 6.75% CIP Fund 283,200 - 283,200 0.00% Debt Service Funds 2,487,181 - 2,487,181 0.00% Infrastructure Fund - 60,000 60,000 na Building Improvement Fund 83,000 - 83,000 0.00% Total (2021 wage @ 2%)7,609,458$ 256,137$ 7,865,595$ 3.37% 2021 wage @ 0%(84,000)$ 7,781,595$ 2.26% 2021 wage @ 1%(42,000)$ 7,823,595$ 2.81% 2021 wage @ 3%42,000$ 7,907,595$ 3.92% *Factors included in Preliminary Levy estimate: 1) Wage adjustments @ 2% plus step adjustments estimated cost $101,337 2) Health Insurance premium increased 9.32% per contract terms, plus plan election changes estimated cost $60,838 3) Workman's Compensation experience rating increased in 2020-2021, when combined with a 9% rate increase resulted in cost increase of $21,044. 4) Liability insurance experience rating increased in 2020-2021 along with a 6% premium rate increase. Property and Casualty premium rates were also raised, estimated combined cost $20,942. 5) Contracted IT services, tele-communications charges and miscellaneous contacted services are up 8.8% estimated cost $37,211. 6) Reflects the State's increased funding for 2021 Local Government Aid, revenue gain of $8,103. 7) Includes preliminary increase of 2021 charges for police services, adds revenue of $33,867. 8) Interest earnings expected to decrease in 2021, estimated revenue loss $10,500. 9) Liquor transfer to General Fund remains at $250,000 for 2021. 10) HRA Levy increased to match redevelopment activity, levied to @ 98% of capacity, cost $12,500. 11) Debt service levy at a zero levy increase. 12) CIP and Building Improvement annual levy increases are not enacted for the 2021 levy. 13) Infrastructure levy of $60,000 represents existing Engineering and Sealcoating costs moved from General Fund levy, zero impact to overall levy. Please note that for the every $76,094 in General Fund incremental spending, equals a 1% overall levy increase. 1 CITY OF ST. ANTHONY VILLAGE 2021 PRELMINARY BUDGET GENERAL FUND REVENUE COMPONENTS ACTUAL ACTUAL ACTUAL ACTUAL BUDGET BUDGET CHANGE 2016 2017 2018 2019 2020 2021 2020-2021 REVENUES TAXES 3,536,079$ 3,786,628$ 4,236,798$ 4,548,038$ 4,766,279$ 4,925,857$ 159,578$ Additional $179,964 in property taxes less an anticipated decrease in excess TIF revenue. LICENSES 81,552 77,105 65,220 65,679 72,175 72,175 -$ No increase in License counts or rates . PERMITS 222,527 281,125 230,732 202,884 183,521 183,521 -$ Permit activity conservatively forecasted at 2020 budget levels. INTERGOVERNMENTAL REVENUE 941,005 978,532 992,347 993,689 1,044,723 1,002,294 (42,429)$ The Fire Relief Association elected to transfer pension management to State / PERA in 2020. Therefore the Fire Relief State Aid will be sent directly to PERA. Historically, Fire Relief State Aid was received by the City and then disbursed to the Fire Relief Association. Therefore there is no levy impact connected to the change in plan managers. CHARGES FOR SERVICES 1,513,189 1,567,978 937,105 961,246 1,013,604 962,819 (50,786)$ Sales of gasoline to New Brightion ending in 2021 resulting in 80,295 less revenues with net levy impact estimated at $3,000. Increase in Police Contract $33,867. FINES 84,934 74,762 74,611 87,187 79,207 77,830 (1,377)$ Estimate based on 2019-2020 run rates. OTHER REVENUES 472,109 323,461 242,554 238,518 200,141 192,860 (7,281)$ Other revenue decrease due to anticipated decline in interest earnings - $10,500. TRANSFERS IN 433,606 619,060 357,870 258,200 262,500 265,000 2,500$ Liquor transfer to General Fund remains at $250,000 for 2021. TOTAL 7,285,001$ 7,708,650$ 7,137,235$ 7,355,442$ 7,622,150$ 7,682,355$ 60,205$ 2 Fiscal Year 2021 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET BUDGET 2016 2017 2018 2019 2020 2021 TAXES 101-3101-0-0-01 TAX - CURRENT HENNEPIN/RAMSEY 3,342,377$ 3,546,540$ 3,948,658$ 4,275,305$ 4,479,593$ 4,659,557$ BASED ON PRELIMINARY ESTIMATES 101-3102-0-0-01 TAX - DELINQUENT (7,486) (5,053) 24,954 (18,387) 2,250 2,250 Based on current run rate 101-3103-0-0-02 TAX - MOBILE HOME/NON-LEVY 11,797 - 5,414 5,033 4,050 4,050 Based on current run rate 101-3105-0-0-01 TAX - TIF 189,391 245,142 257,772 286,087 280,386 260,000 Based on 2020 estimated actual per discussion with county TOTAL 3,536,079$ 3,786,628$ 4,236,798$ 4,548,038$ 4,766,279$ 4,925,857$ LICENSES 101-3210-1-1-01 LICENSE ON SALE INTOXICATING 32,800$ 24,600$ 16,400$ 16,719$ 24,600$ 24,600$ Based on 2020 budgeted License count 101-3210-1-1-02 LIQUOR INVST /COMPLIANCE 500 - 500 1,000 500 500 Based on current License count 101-3210-1-1-03 LICENSE WINE & BEER 4,313 6,500 6,375 5,125 5,125 5,125 Based on current License count 101-3210-1-1-04 LICENSE BEER 3.2%550 550 550 300 550 550 Based on current License count 101-3211-1-1-01 LICENSE RENTAL SF 15,950 14,350 14,450 14,450 14,150 14,150 Based on Est. current License count trend 101-3211-1-1-02 LICENSE RENTAL MULTI FAMILY 16,990 19,870 16,990 16,990 16,990 16,990 Based on current License count 101-3212-1-1-00 LICENSE CIGARETTE SALES 2,100 2,100 2,100 2,400 2,400 2,400 Based on current License count 101-3213-1-2-00 LICENSE DOG 404 20 - - - - Dog License requirement retired in 2017 101-3214-1-1-00 LICENSE SERVICE STATION 1,560 1,560 1,560 2,100 1,560 1,560 Based on current License count for active stations 101-3215-1-1-00 LICENSE OTHER 560 1,250 460 430 600 600 Based on current License count 101-3216-1-2-00 LICENSE FIREWORKS 100 100 100 100 100 100 Based on current License count 101-3218-1-1-00 LICENSE GENERAL CONTRACTOR 4,375 4,855 4,385 4,715 4,250 4,250 License count varies based on construction activity 101-3219-1-1-00 LICENSE HAULERS 1,350 1,350 1,350 1,350 1,350 1,350 3 Commercial / 4 Residential Haulers TOTAL 81,552$ 77,105$ 65,220$ 65,679$ 72,175$ 72,175$ PERMITS 101-3220-1-1-00 PERMITS LAND USE 1,000$ 6,300$ 7,000$ 5,650$ 3,000$ 3,000$ Conservative Est of run rate 101-3221-1-1-00 PERMITS BUILDING 119,942 123,570 104,862 92,355 86,675 86,675 Conservative Est of run rate 101-3221-1-1-01 PERMITS PLAN CHECK 45,895 61,278 50,422 33,048 37,919 37,919 Conservative Est of run rate 101-3222-1-1-00 PERMITS GAS, HVAC 12,646 36,501 20,376 15,012 16,805 16,805 Conservative Est of run rate 101-3223-1-1-00 PERMITS PLUMBING 10,831 12,724 11,143 9,305 9,240 9,240 Conservative Est of run rate 101-3224-1-1-00 PERMITS ELECTRICAL 15,078 16,947 18,797 21,315 14,214 14,214 Conservative Est of run rate 101-3225-1-1-00 PERMITS ADMIN FEES 9,130 11,245 9,968 11,295 8,169 8,169 Conservative Est of run rate 101-3228-1-1-00 PERMITS ALARM 5,300 5,700 3,454 2,760 3,250 3,250 Conservative Est of run rate 101-3229-1-1-00 PERMITS MISCELLANEOUS 2,705 6,860 4,710 12,145 4,250 4,250 Sign permits ROW permits TOTAL 222,527$ 281,125$ 230,732$ 202,884$ 183,521$ 183,521$ INTERGOVERNMENTAL 101-3310-2-3-00 FEDERAL GRANTS 4,841 6,092 471 2,036 3,500 3,500 Includes State vest reimbursement as well 101-3320-2-2-01 ISD 282- DARE PROGRAM 15,462 14,500 14,500 14,500 14,500 14,500 Fixed School reimbursement 101-3330-0-0-00 MVHC/LGA 523,010 528,225 552,240 553,865 609,553 617,656 Based on 2021 LGA - additional funding 101-3340-0-0-00 STATE AID- PERA INCREASE 7,197 7,197 7,197 7,197 7,197 7,197 Fixed amount of aid 101-3342-2-2-00 STATE AID- FIRE RELIEF 50,174 53,206 53,083 53,716 53,715 - FIRE RELEF PART OF STATE PLAN NO PASS THOUGH OF AID 101-3346-2-2-00 STATE AID- POLICE 197,374 207,448 206,192 197,500 194,192 198,076 2021 based on 2020 budget plus 2% 101-3348-3-2-00 STATE AID- MSA MAINTENANCE 89,905 88,708 97,275 96,265 96,265 99,302 2021 Based on 96% 2020 State Aid 101-3350-2-2-00 LOCAL GRANTS- FIRE (DISABILITY & ED)13,024 37,419 19,696 11,552 12,500 12,500 2021 Based on budgeted 2020 Grants 101-3360-2-2-00 LOCAL GRANTS- POLICE 33,575 35,658 41,623 52,625 38,426 42,000 Safe and sober program 101-3365-1-1-00 LOCAL GRANTS- MISCELLANEOUS (97) 78 - - 250 250 101-3370-2-2-00 LOCAL GRANTS- PW 6,540 - 68 4,432 14,625 7,313 Opportunity operating grants TOTAL 941,005$ 978,532$ 992,347$ 993,689$ 1,044,723$ 1,002,294$ 101-3380-1-1-03 CS MWMO 94,881$ 94,851$ 102,148$ 109,612$ 112,247$ 116,204$ 2021 based on est increase in 2020 billing rate CHARGES FOR SERVICES GENERAL FUND REVENUES DETAIL 3 Fiscal Year 2021 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET BUDGET 2016 2017 2018 2019 2020 2021 GENERAL FUND REVENUES DETAIL 101-3380-1-1-04 CS BIRCHWOOD 7,531 7,894 7,789 11,492 8,399 8,567 Based on current level of contract services and rate increase 101-3380-1-2-07 CS ISD 282 5,741 10,366 11,965 13,981 14,126 12,854 Based on current level of contract services 101-3380-2-1-08 CS PD OTHER REIMB OT - - - - 10,000 10,000 Other reimbursed OT 101-3380-3-1-05 CS HENNEPIN 28,493 31,312 31,756 33,464 33,966 34,475 Estimated increase 1.5% 101-3380-3-1-06 CS NEW BRIGHTON FUEL 70,491 78,374 90,678 79,493 87,795 7,500 NEW BRIGHTON PW EXPANSION INCLUDED FUELING STATION FEB 2021 101-3380-5-1-01 CS LAUDERDALE 653,026 672,590 692,768 713,204 747,071 773,218 Based on 2021 Police contract draft proposal 101-3380-5-1-02 CS FALCON HGTS 653,026 672,590 - - - - TOTAL 1,513,189$ 1,567,978$ 937,105$ 961,246$ 1,013,604$ 962,819$ FINES 101-3510-1-1-00 COURT FINES 80,119$ 68,532$ 65,661$ 78,797$ 70,917$ 69,540$ 95% of 2020 est actual 101-3510-1-1-01 FALSE ALARMS 3,600 3,125 6,913 6,290 6,290 6,290 Est of run rate 101-3885-2-1-00 POLICE IMPOUND FEES 1,215 3,105 2,037 2,100 2,000 2,000 Est of run rate TOTAL 84,934$ 74,762$ 74,611$ 87,187$ 79,207$ 77,830$ REIMBURSEMENTS AND OTHER REVENUES 101-3622-1-1-00 WT LEASE RENTALS 82,245$ 59,408$ 56,256$ 58,232$ 60,270$ 62,380$ 2021 SCHEDULED RENTS. 101-3800-1-1-00 DONATIONS GENERAL 500 600 500 - 500 500 101-3800-2-1-01 DONATIONS PD - 100,500 - 500 500 500 101-3800-2-1-02 DONATIONS PD CRIME PREVENTION 720 400 3,373 - - - 101-3800-4-1-00 DONATIONS PARKS 400 - - - - - 101-3804-1-1-00 RR- MISCELLANEOUS 150,977 5,623 19,596 9,752 12,000 12,000 Army reimbursement in 2016 actual 101-3805-4-1-00 CABLE FRANCHISE FEES 113,672 115,079 101,612 97,200 86,370 87,480 Comcast cable fees declining assumed 90% of 2019 actual 101-3410-0-1-00 CLEAN-UP DAY FEES - - - - - - Clean up day program returned to recycling fund 101-3809-0-0-00 LMC DIVIDENDS 65,930 11,394 8,358 6,954 7,500 7,500 P&C dividend not received until fall, no WC dividend budgeted 101-3810-0-0-00 INVESTMENT INCOME 26,856 17,994 23,866 58,472 31,500 21,000 Reflects falling interest rates since early 2020 101-3810-1-1-00 MISCELLANEOUS (5,370) 6,557 5,199 7,258 1,500 1,500 place holder 101-3890-0-0-00 INSURANCE PROCEEDS 36,179 5,906 23,793 150 - - TOTAL 472,109$ 323,461$ 242,554$ 238,518$ 200,141$ 192,860$ TRANSFERS IN 101-3920-0-0-00 LIQUOR FUND 156,396$ 249,060$ 250,000$ 250,000$ 250,000$ 250,000$ No change to Liquor transfer 101-3920-0-0-00 TIF ADMINISTRATION FEES - -7,870 8,200 12,500 15,000 Additional staff time with TIF redevelopment activites 101-3920-0-0-00 WATER FILTRATION INT EARNINGS 200,000 - - - - - 101-3920-0-0-00 CAPITAL RESERVE TRANSFER - 370,000 100,000 - - - 101-3920-0-0-00 CONDUIT FEE REASSIGNED 77,210 - - - - - TOTAL 433,606$ 619,060$ 357,870$ 258,200$ 262,500$ 265,000$ TOTAL FUND REVENUE 7,285,001$ 7,708,650$ 7,137,235$ 7,355,442$ 7,622,150$ 7,682,355$ 4 4 CITY OF ST. ANTHONY VILLAGE 2021 PRELMINARY BUDGET GENERAL FUND EXPENSE COMPONENTS ACTUAL ACTUAL ACTUAL ACTUAL BUDGET BUDGET CHANGE 2016 2017 2018 2019 2020 2021 2020-2021 EXPENSES PAYROLL & EXPENSES 4,385,031$ 4,252,979$ 4,307,638$ 4,393,272$ 4,658,493$ 4,759,830$ 101,337$ 2021 wage adjustments at estimated Union settlements, plus step increases. HEALTH INSURANCE 561,183 528,935 536,911 547,050 575,587 636,425 60,838$ Health premium increase of 9.32% shared 50/50 between employees and employer, employee election changes. OTHER INSURANCE 250,563 231,053 255,902 283,016 290,032 332,018 41,986$ Experience rating increased for all coverages, combined with rate increases of 6%-9%. CONTRACTED IT SERVICES 88,904 99,451 113,378 136,899 139,570 160,600 21,030$ Based on 2021 rates, Roseville IT/licenses up $13,385, support costs for security and finance software up $6,617. COMMUNICATIONS 72,647 72,951 82,602 90,956 97,255 103,840 6,585$ Based on 2021 anticipated rate increases, Verizon and radio maintenance increase $4,916. MISC. CONTRACTED SERVICES 55,945 121,173 141,700 135,535 187,981 197,578 9,596$ Based on 2021 anticipated rates, added PD counseling services $3,600. SEVERANCE TRANSFER 86,300 86,300 86,300 86,300 86,300 86,300 -$ Maintained funding level to meet current needs and then reduce unfunded liability. FUELS 61,747 65,432 69,295 60,382 88,020 79,255 (8,765)$ 2020 contracted cost per gal $2.13 / 2021 projection $2.23 / 3yr avg usage lower than 2020 budgeted UTILITIES 122,780 119,067 118,337 121,472 123,806 125,921 2,115$ Budget based on usage run rates and XCEL and Centerpoint estimated rate increases. PROFESSIONAL SERVICES 362,839 333,890 296,053 351,157 378,919 371,090 (7,829)$ Professional services reflect rate and activity increases. Additionally 2021 budget excludes $25,000 of enginnering cost now part of Infrastructure Levy. PASS THROUGH PAYMENTS 265,381 276,999 315,352 296,238 315,095 187,744 (127,350)$ New Brighton gas purchases ending in 2021, Fire Relief State Aid no longer passed through City Accounts, total pass through reduction BUILDING PERMIT COST SHARE 106,164 131,229 109,028 91,923 88,584 90,356 1,772$ Based on contracted share of Budgeted construction revenues. ROAD MAINTENANCE 70,899 43,327 53,719 131,069 106,692 68,529 (38,163)$ Street sealcoating and crack filling costs of approximately $35,000 are part of the Infrastructure levy in 2021 . MEMBERSHIP DUES, TRAINING, CONF.90,474 99,943 101,471 92,959 114,030 114,892 861$ Memberships, training & professional development - maintained at 2020 budgeted levels . SUPPLIES, REPAIR, MAINTENANCE 182,205 179,355 167,181 176,033 207,551 209,832 2,281$ Costs projected at current run rates. PRINTING & NOTICES 9,992 8,941 9,863 12,815 14,272 24,325 10,053$ 2021 includes 100% cost of City newletter vs 50% in 2020. MISCELLANEOUS 85,564 86,008 79,748 95,824 133,788 124,371 (9,417)$ 2021 decrease is due to recongizing the completion (or partial) of certain grants specific to 2020. TOTAL 6,858,618$ 6,737,032$ 6,844,477$ 7,102,897$ 7,605,974$ 7,672,904$ 66,930$ 5 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 MAYOR / CITY COUNCIL 101-4110-11-0000 CN REGULAR EMPLOYEE 38,256$ 36,692$ 38,256$ 38,256$ 38,256$ 38,256$ 0.00%NO CHANGE IN 2021 COUNCIL COMPENSATION 101-4121-11-0000 CN PERA 1,913 1,826 1,913 1,913 1,913 1,913 0.00%5% contribution rate 101-4122-11-0000 CN FICA/MEDICARE 555 567 552 555 555 566 2.00%1.45% contribution rate - Medicare only 101-4300-11-0000 CN PROFESSIONAL SERVICES 920 3,710 6,508 6,088 6,500 6,630 2.00%2021 PROJECTED RUN RATE 101-4309-11-0000 CN MISC CONTRACTED SERVICES 887 926 907 905 1,150 1,200 4.35%ADJUSTED TO ESTIMATED RUN RATE 101-4315-11-0000 CN RECORDING SERVICE 4,679 6,439 6,441 5,749 6,733 6,868 2.00%2021 PROJECTED RUN RATE 101-4341-11-0000 CN TRAINING, CONF., AND MTG.12,877 12,659 14,698 10,612 9,068 9,249 2.00%LOCAL GOAL SETTING 101-4342-11-0000 CN MEMBERSHIPS & DUES 12,797 12,797 13,121 13,250 14,290 13,900 -2.73%ADJUSTED TO ESTIMATED RUN RATE- no LMC fee increase in 2020 101-4345-11-0000 CN INTERGOVERMENTAL ACTIVITIES - 447 3,678 - - - 0.00%SALO COSTS 101-4352-11-0000 CN CITY NEWSLETTER 6,502 5,374 6,624 7,558 9,579 19,541 104.00%2021 FULL COST OF NEWSLETTER VS SPLIT WITH RECYCLING FUND 101-4499-10-0000 CN MISCELLANEOUS 954 1,256 839 1,181 750 750 0.00%4499-10 and 4499-11 TOTAL 80,340$ 82,693$ 93,537$ 86,066$ 88,793$ 98,873$ 11.35% GENERAL MANAGEMENT 101-4110-12-0000 GM REGULAR EMPLOYEE 68,479$ 70,406$ 76,046$ 80,586$ 162,307$ 164,358$ 1.26%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4121-12-0000 GM PERA 4,993 5,274 5,665 5,999 12,173 12,327 1.26%BASED ON CURRENT PERA FUNDING RATE 101-4122-12-0000 GM FICA/MEDICARE 3,544 3,787 3,929 4,016 12,416 12,573 1.26%BASED ON ER 7.65% OF GROSS 101-4131-12-0000 GM INSURANCE HEALTH 11,652 11,330 11,849 12,328 10,806 10,379 -3.95%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-12-0000 GM INSURANCE WC 522 1,079 1,054 1,142 1,862 2,354 26.42%2020/2021 RENEWAL 101-4211-12-0000 GM OFFICE SUPPLIES 64 - 117 862 250 255 2.00%2021 PROJECTED RUN RATE 101-4300-12-0000 GM PROFESSIONAL SERVICES - - - - 275 281 2.00%2021 PROJECTED RUN RATE 101-4309-12-0000 GM MISC CONTRACTED SERVICES 355 371 800 362 460 480 4.35%BASED ON MISC CONTRACTED SERVICES SPREADSHEET 101-4341-12-0000 GM TRAINING, CONF., AND MTG.12,310 14,705 14,387 11,498 16,000 16,320 2.00%2021 PROJECTED RUN RATE 101-4342-12-0000 GM MEMBERSHIPS & DUES 6,553 6,878 6,664 6,841 6,900 7,038 2.00%2021 PROJECTED RUN RATE 101-4343-12-0000 GM HEALTH & SAFETY PROGRAMS 7,086 6,958 7,430 7,248 7,725 7,880 2.00%INTEGRATED LOSS CONTROL SERVICES 101-4499-12-0000 GM MISCELLANEOUS 213 87 - - - - 0.00% TOTAL 115,771$ 120,873$ 127,942$ 130,883$ 231,175$ 234,244$ 1.33% PLANNING 101-4110-13-0100 PL REGULAR EMPLOYEE 6,143$ 6,330$ 7,259$ 7,996$ 8,319$ 8,515$ 2.36%PORTION OF ADMIN SRVCS COORD TIME 101-4110-13-0000 PL COMMISSION 2,155 2,095 2,295 1,855 2,500 2,500 0.00%BASED ON MEETINGS ATTENDED BY COMMISSIONERS 101-4111-13-0000 PL OVERTIME - - - 3 250 253 1.00%ADJUSTED TO ESTIMATED RUN RATE 101-4121-13-0000 PL PERA 461 475 544 600 643 658 2.32%ADJUSTED TO ESTIMATED RUN RATE 101-4122-13-0000 PL FICA/MEDICARE 635 645 731 754 847 862 1.79%ADJUSTED TO ESTIMATED RUN RATE 101-4131-13-0000 PL INSURANCE HEALTH 1,690 1,652 1,723 1,793 1,869 1,972 5.51%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4226-13-0000 PL GENERAL SUPPLIES 132 83 121 133 135 138 2.00%ADJUSTED TO ESTIMATED RUN RATE 101-4302-13-0000 PL CONTRACTED PLANNER 49,690 56,252 57,805 78,061 60,000 72,000 20.00%ASSUMES HIGH ACTIVITY LEVEL CONTINUES 101-4302-13-0100 PL COMP PLAN - PLANNER 56,483 37,592 - - - - 0.00%COMPREHENSIVE PLAN COMPLETE 101-4305-13-0000 PL GIS CONTRACTED SERVICES 4,563 4,682 2,887 4,039 5,050 5,151 2.00%DATA LINK MAINT. AND MAPPING REQUESTS, ADJ TO EST RUN RATE 101-4341-13-0000 PL TRAINING, CONF. & MTG.- - - 362 485 494 2.00%PLACEHOLDER FOR PLANNING COMMISSION TRAINING/GOAL SETTING 101-4351-13-0000 PL NOTICES & PUBLICATIONS - - 178 - 160 163 2.00% TOTAL 121,952$ 109,805$ 73,544$ 95,596$ 80,258$ 92,706$ 15.51% ADMINISTRATIVE SERVICES 101-4110-14-0000 AD REGULAR EMPLOYEE -$ -$ -$ -$ 33,276$ 34,059$ 2.35%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-14-0000 AD OVERTIME - - - - 750 758 1.00%INCL ADMIN SRVCS COORD 2020, CLERK 40% 101-4112-14-0000 AD PART-TIME EMPLOYEE - - - - 3,000 1,500 -50.00%Added pt help for early voting coverage 101-4121-14-0000 AD PERA - - - - 2,721 2,667 -1.98%BASED ON CURRENT PERA FUNDING RATE 101-4122-14-0000 AD FICA/MEDICARE - - - - 2,775 2,720 -1.98%BASED ON ER 7.65% OF GROSS 101-4131-14-0000 AD INSURANCE HEALTH - - - - 7,477 7,889 5.51%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4211-14-0000 AD OFFICE SUPPLIES 934 352 365 428 525 536 2.00%COSTS INCLUDED IN RAMSEY COUNTY CONTRACT 101-4221-14-0000 AD SUPPLIES- EQUIPMENT - - - 899 - - 0.00%COSTS INCLUDED IN RAMSEY COUNTY CONTRACT 101-4226-14-0000 AD POSTAGE ABSENTEE - - - 137 - - 0.00%COSTS INCLUDED IN RAMSEY COUNTY CONTRACT GENERAL FUND EXPENDITURES DETAIL 6 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 GENERAL FUND EXPENDITURES DETAIL 101-4309-14-0000 AD CONTRACTED SERVICES 19,713 19,712 19,713 20,700 20,700 21,114 2.00%RAMSEY COUNTY CONTRACT 2019-2020, 2021 RENEWAL NOT YET AVAILABLE 101-4315-14-0000 AD MISC CONTRACTED SERVICES - - - 10,282 50,000 50,000 0.00%SHARED COMMUNICATIONS POSITION ESTIMATED RUN RATE 101-4339-14-0000 AD REPAIR & MAINTENANCE 1,267 3,397 - 1,248 1,300 1,326 2.00%RAMSEY COUNTY CONTRACT 2019-2020, 2021 RENEWAL NOT YET AVAILABLE 101-4341-14-0000 AD TRAINING, CONF. & MTG.200 279 816 174 428 900 110.08%ELECTION/CLERK/ COMMUNICATIONS TRAINING 101-4342-14-0000 AD MEMBERSHIPS & DUES - - - 85 150 153 2.00%CLERKS ASSOCIATION 101-4351-14-0000 AD NOTICES & PUBLICATIONS - - - 160 150 153 2.00%COMMUNICATIONS SUBSCRIPTIONS 101-4499-14-0000 AD MISCELLANEOUS - - - - 150 153 2.00%PLACEHOLDER TOTAL 22,114$ 23,740$ 20,893$ 34,113$ 123,402$ 123,927$ 0.43% FINANCIAL SERVICES 101-4110-15-0000 FS REGULAR EMPLOYEE 166,690$ 174,095$ 190,903$ 194,309$ 114,857$ 121,852$ 6.09%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-15-0000 FS OVERTIME 1,563 2,193 8,131 8,912 4,646 4,739 2.00%2021 PROJECTED RUN RATE 101-4121-15-0000 FS PERA 12,864 13,580 14,775 15,409 8,963 9,494 5.93%BASED ON CURRENT PERA FUNDING RATE 101-4122-15-0000 FS FICA/MEDICARE 10,625 11,530 14,440 13,473 9,142 9,684 5.93%BASED ON ER 7.65% OF GROSS 101-4131-15-0000 FS INSURANCE HEALTH 21,562 20,969 21,133 22,174 20,456 21,365 4.44%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-15-0000 FS INSURANCE WC 836 1,773 1,290 1,947 1,185 1,535 29.54%2020/2021 RENEWAL 101-4133-15-0000 FS LIFE INSURANCE 905 863 787 951 942 961 2.00%2021 PROJECTED RUN RATE 101-4211-15-0000 FS OFFICE SUPPLIES 5,662 5,161 5,163 5,500 6,120 6,242 2.00%2021 PROJECTED RUN RATE 101-4221-15-0000 FS SUPPLIES - EQUIP 853 679 - 219 1,000 1,000 0.00%MINOR EQUIPMENT NEW & REPLACEMENT 101-4226-15-0000 FS GENERAL SUPPLIES 2,176 1,876 2,686 3,077 2,500 2,900 16.00%ADJUST TO RUN RATE / ALLOCATION TO OTHER DEPTS ELIMINATED 101-4300-15-0000 FS PROFESSIONAL SERVICES 17,220 19,142 16,655 18,080 18,250 17,415 -4.58%AUDIT AND FD ACTUARY REPORT UPDATE IN 2019 101-4309-15-0000 FS CONTRACTED IT & SW SUPPORT 3,088 3,962 3,850 3,902 4,800 5,810 21.04%BASED ON CONTRACTED IT /SW SPREADSHEET CIVIC UPGRADE 2020/2021 101-4310-15-0000 FS MISC CONTRACTED SERVICES 4,230 4,916 6,510 5,434 5,890 6,030 2.38%BASED ON MISC CONTRACTED SERVICES SPREADSHEET 101-4315-15-0000 FS HC ASSESSOR SERVICES 460 446 - - 500 510 2.00%HC TNT MAILING 101-4325-15-0000 FS COMMUNICATIONS 1,159 638 962 1,379 775 1,380 78.06%ADJ TO ESTIMATED RUN RATE-COMMUNICATIONS SPREADSHEET 101-4339-15-0000 FS REPAIR & MAINTENANCE 328 205 - - 173 177 2.00%CURRENT RUN RATE 101-4341-15-0000 FS TRAINING, CONF. & MTG.3,307 5,991 1,669 1,004 2,750 1,750 -36.36%INCLUDES LESS IN TUTION REIMBURSEMENT EXPECTED FOR 2021 101-4342-15-0000 FS MEMBERSHIPS & DUES 515 486 95 105 115 117 2.00%2021 PROJECTED RUN RATE 101-4350-15-0000 FS PRINTED FORMS & ENVELOPES 1,381 1,172 1,077 1,879 1,500 1,530 2.00%2021 PROJECTED RUN RATE 101-4351-15-0000 FS NOTICES & PUBLICATIONS 1,115 1,701 781 1,776 1,500 1,530 2.00%2021 PROJECTED RUN RATE 101-4365-15-0000 FS INSURANCE PROPERTY / LIABILITY 78,867 68,962 74,109 81,212 84,295 97,586 15.77%BASED ON 2020/2021 RENEWAL 101-4498-15-0000 FS REIMBURSED COSTS ADVANCED 5,886 6,594 6,280 6,144 6,725 6,860 2.00%MWMO ADP COST 101-4499-15-0000 FS MISCELLANEOUS 75 459 8 608 133 300 126.16%ADJUSTED TO ESTIMATED RUN RATE TOTAL 341,367$ 347,391$ 371,306$ 387,492$ 297,217$ 320,767$ 7.92% LEGAL 101-4312-16-0000 AT GENERAL LEGAL 30,000$ 39,272 16,786 15,812 35,000 35,000 0.00%2021 PROJECTED RUN RATE 101-4313-16-0000 AT CIVIL LITIGATION 32,693 5,467 16,583 34,386 65,250 65,250 0.00%2021 BUDGET INCLUDES POTENTIAL REDACTION COSTS 101-4314-16-0000 AT PROSECUTION RETAINER 42,000 42,000 42,000 42,000 42,000 42,000 0.00%2021 PROJECTED RUN RATE TOTAL 104,693$ 86,739$ 75,369$ 92,198$ 142,250$ 142,250$ 0.00% ASSESSING 101-4110-17-0000 ASR REGULAR EMPLOYEE 2,718$ 2,789$ 2,890$ 3,013$ 3,082$ 3,387$ 9.90%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-17-0000 ASR OVERTIME EMPLOYEE 47 87 295 277 415 416 0.24%2021 PROJECTED RUN RATE 101-4121-17-0000 ASR PERA 206 215 237 246 262 285 8.75%BASED ON CURRENT PERA FUNDING RATE 101-4122-17-0000 ASR FICA/MEDICARE 212 220 244 252 268 291 8.75%BASED ON ER 7.65% OF GROSS 101-4131-17-0000 ASR INSURANCE HEALTH 486 471 503 531 564 604 7.09%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4226-17-0000 ASR GENERAL SUPPLIES 138 135 116 166 170 173 2.00%2021 PROJECTED RUN RATE 101-4311-17-0000 ASR HC ASSESSOR SERVICES 55,531 58,000 61,000 64,000 68,000 70,720 4.00%BASED ON 5 YEAR AVERAGE INCREASE 101-4350-17-0000 ASR PRINTED FORMS & ENVELOPES - - - - 160 160 0.00%PLACEHOLDER TOTAL 59,338$ 61,917$ 65,285$ 68,483$ 72,921$ 76,036$ 4.27% CITY BUILDINGS 101-4310-18-0000 CB MISC CONTRACTED SERVICES 10,718$ 55,817 54,760 56,825 56,985 59,100 3.71%City contracted cleaning services / refuse / rugs 101-4325-18-0000 CB COMMUNICATIONS 6,532 5,833 5,762 5,624 6,270 6,700 6.86%BASED ON COMMUNICATION SPREADSHEET 7 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 GENERAL FUND EXPENDITURES DETAIL 101-4340-18-0000 CB REPAIRS AND MAINTENANCE 25,345 19,121 17,414 23,118 22,950 23,409 2.00%2021 PROJECTED RUN RATE 101-4381-18-0000 CB ELECTRIC AND GAS UTILITIES 32,596 33,751 33,505 40,571 36,465 37,500 2.84%2021 budget based on usage run rates and Estimated rate increases 101-4920-18-0000 CB TRANSFER CH RENT 81,800 85,890 90,185 94,694 96,588 100,451 4.00%4.0 % increase in rent transfer - funds CC / CH Facility expenses TOTAL 156,991$ 200,412$ 201,625$ 220,831$ 219,257$ 227,160$ 3.60% CABLE FRANCHISE 101-4110-19-0000 CF REGULAR EMPLOYEE 6,143$ 6,330$ 7,259$ 7,999$ 8,319$ 8,515$ 2.36%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4121-19-0000 CF PERA 461 475 544 600 624 639 2.36%BASED ON CURRENT PERA FUNDING RATE 101-4122-19-0000 CF FICA/MEDICARE 470 484 555 612 636 651 2.36%BASED ON ER 7.65% OF GROSS 101-4131-19-0000 CF INSURANCE HEALTH 1,690 1,652 1,723 1,793 1,869 1,972 5.51%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4211-19-0000 CF OPERATING SUPPLIES - 86 - 20 400 408 2.00%2021 PROJECTED RUN RATE 101-4221-19-0000 CF SUPPLIES- EQUIPMENT - - - 32 1,025 1,046 2.00%2021 PROJECTED RUN RATE 101-4307-19-0000 CF NSCC OPERATING SUPPORT 28,736 29,402 30,529 29,777 31,716 32,350 2.00%2021 PROJECTED RUN RATE 101-4310-19-0000 CF MISC CONTRACTED SERVICES 5,203 6,961 6,961 3,403 3,772 3,970 5.26%2021 Annual website support -SEE MISC CONTRACTED SPREADSHEET 101-4341-19-0000 CF TRAINING, CONF & MTG - - - - - - 0.00% TOTAL 42,703$ 45,391$ 47,572$ 44,237$ 48,361$ 49,551$ 2.46% POLICE PROTECTION 101-4110-21-0000 PD REGULAR EMPLOYEE 2,170,749$ $ 2,014,439 $ 1,934,184 1,976,883$ 2,074,359$ 2,137,849$ 3.06%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4110-21-0100 PD MECHANIC ALLOC-WAGES 16,097 17,242 17,894 18,476 19,212 19,854 3.34%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4110-21-0200 PD DARE ALLOC-WAGES 8,257 7,726 7,947 8,215 10,749 11,041 2.72%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-21-0000 PD OVERTIME EMPLOYEE 68,103 64,615 105,139 98,673 98,120 100,082 2.00%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-21-0100 PD MECHANIC OVERTIME EMPLOYEE 164 150 71 159 162 165 2.00%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-21-0200 PD DARE ALLOC - OT 118 228 371 538 765 780 2.00%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4111-21-0300 PD SAFE & SOBER - OT 26,843 28,732 31,805 37,916 32,250 32,250 0.00%PASS THROUGH COSTS NO NET LEVY IMPACT 101-4111-21-0400 PD COURT OVERTIME 10,274 5,721 3,927 4,316 4,500 4,500 0.00%Based on estimated run rate 101-4111-21-0500 PD OTHER REIMB OT - - 15,379 - 10,000 10,000 0.00%pass through costs no net levy impact-mandatory training annual 101-4121-21-0000 PD PERA 359,051 332,437 322,711 340,375 376,846 376,846 0.00%BASED ON CURRENT PERA FUNDING RATE 101-4121-21-0100 PD MECHANIC ALLOC- PERA 1,297 1,371 1,423 1,474 1,453 1,501 3.33%BASED ON CURRENT PERA FUNDING RATE 101-4121-21-0200 PD DARE ALLOC- PERA 1,537 1,442 1,487 1,621 2,050 2,050 0.00%BASED ON CURRENT PERA FUNDING RATE 101-4122-21-0000 PD FICA/MEDICARE 37,946 38,792 37,432 38,224 41,903 41,903 0.00%DEPT SUMMARIES FICA 101-4122-21-0100 PD MECHANIC ALLOC-SS/MEDICARE 1,251 1,342 1,383 1,430 1,470 1,519 3.34%BASED ON ER 7.65% OF GROSS 101-4122-21-0200 PD DARE ALLOC-SS/MEDICARE 127 119 123 128 167 171 2.67%BASED ON 1.45% ER MEDICARE RATE 101-4131-21-0000 PD INSURANCE HEALTH 337,706 304,352 308,057 318,684 326,054 369,514 13.33%SPLIT 9.4% PREMUIM INCREASE IN 2021 & TURNOVER PLAN CHANGES 101-4131-21-0100 PD MECHANIC ALLOC-HLTH INS 445 655 840 958 1,008 1,058 4.96%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4131-21-0200 PD HEALTH - DARE 1,629 1,394 1,450 1,506 1,907 2,012 5.51%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-21-0000 PD WORKER'S COMP INS 68,584 60,750 71,027 83,558 87,105 93,358 7.18%BASED ON 2020/2021 RENEWAL 101-4212-21-0100 PD MOTOR FUELS 45,023 47,085 47,154 36,821 56,882 45,915 -19.28%2020 contracted cost per gal $2.13 / 2021 projection $2.23 / 3yr avg usage 101-4220-21-0000 PD SQUADS CLEANING 1,165 1,232 1,399 1,336 1,900 1,938 2.00%2021 PROJECTED RUN RATE 101-4221-21-0000 PD SUPPLIES- EQUIPMENT 113 138 537 3,959 2,000 2,040 2.00%2021 PROJECTED RUN RATE 101-4221-21-0100 PD VEHICLE REPAIRS/PARTS 12,955 30,315 11,045 16,144 16,000 16,320 2.00%2021 PROJECTED RUN RATE 101-4226-21-0000 PD GENERAL SUPPLIES 22,455 12,593 19,439 17,894 21,500 21,930 2.00%2021 PROJECTED RUN RATE 101-4226-21-0100 PD SHOP SUPPLIES - - 100 536 500 510 2.00%2021 PROJECTED RUN RATE 101-4226-21-0200 PD DARE SUPPLIES 2,718 2,719 1,981 2,595 2,000 2,040 2.00%2021 PROJECTED RUN RATE 101-4226-21-0500 PD VEST GRANT SUPPLIES 9,313 1,303 2,212 4,073 3,500 3,570 2.00%Supported by grant revenues 101-4309-21-0000 PD CONTRACTED IT & SFTW SUPPORT 56,748 62,306 69,210 87,643 91,780 104,060 13.38%BASED ON CONTRACTED IT SPREADSHEET, ADDED LEXIPOL IN 2019 101-4310-21-0000 PD MISC CONTRACTED SERVICES 8,074 4,512 5,008 10,814 8,420 14,220 68.88%BASED ON MISC. CONTRACTED SERVICES SPREADSHEET 101-4325-21-0000 PD COMMUNICATIONS 44,478 44,672 55,454 61,645 63,220 67,300 6.45%BASED ON COMMUNICATION SPREADSHEET 101-4333-21-0000 PD HC PRISONER SERVICES 5,692 3,913 5,766 7,233 6,885 8,500 23.46%2021 PROJECTED RUN RATE 101-4341-21-0000 PD TRAINING, CONF. & MTG.21,876 16,658 27,738 22,353 33,611 34,283 2.00%2021 PROJECTED RUN RATE 101-4342-21-0000 PD MEMBERSHIPS & DUES 2,085 2,580 1,954 5,606 5,600 5,712 2.00%2021 PROJECTED RUN RATE 101-4350-21-0000 PD PRINTED FORMS & ENVELOPES 902 602 769 1,442 969 988 2.00%2021 PROJECTED RUN RATE 101-4365-21-0000 PD INSURANCE PC / LIABILITY 51,476 47,941 51,065 54,753 56,615 64,265 13.51%BASED ON 2020/2021 RENEWAL 8 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 GENERAL FUND EXPENDITURES DETAIL 101-4345-21-0000 PD MISC GRANTS / REIMB EXPENDITURES 1,293 848 1,756 - 1,500 1,500 0.00%2021 PROJECTED RUN RATE 101-4499-21-0000 PD MISCELLANEOUS 3,809 75 49 - 250 250 0.00%PLACEHOLDER TOTAL 3,400,353$ 3,160,996$ 3,170,332$ 3,276,319$ 3,463,212$ 3,601,796$ 4.00% FIRE PROTECTION 101-4110-22-0000 FD REGULAR EMPLOYEE 485,961$ 512,052$ 519,281$ 521,497$ 540,307$ 547,763$ 1.38%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4110-22-0100 FD MECHANIC ALLOC- WAGES 9,198 9,852 10,225 10,558 11,070 11,345 2.48% 16% of mechanic wages/uniform 101-4111-22-0000 FD OVERTIME EMPLOYEE 36,622 39,228 43,950 35,486 41,500 42,330 2.00%FROM DEPT SUMMARIES OT 101-4111-22-0100 FD OT - UNION CONTRACT 33,950 35,301 35,918 36,303 37,570 38,321 2.00%FROM DEPT SUMMARIES OT 101-4112-22-0000 FD PART-TIME EMPLOYEE 70,763 77,231 83,155 82,977 78,066 79,627 2.00%2021 Moved Housing Inspector to code enforcement 101-4112-22-0100 FD CODE ENFORCEMENT 8,513 9,992 4,883 5,509 18,200 18,564 2.00%2021 see above 101-4121-22-0000 FD PERA 91,759 94,880 97,699 100,475 109,630 111,229 1.46%BASED ON CURRENT PERA FUNDING RATE 101-4121-22-0100 FD MECHANIC ALLOC- PERA 741 783 813 842 830 851 2.48%BASED ON ER 7.65% OF GROSS 101-4122-22-0000 FD FICA/MEDICARE 11,674 13,065 15,585 14,325 17,185 17,333 0.86%See dept. summary-PR, Medicare on FD OT union plus fica for VT off 101-4122-22-0100 FD MECHANIC FICA/MEDICARE 715 767 791 817 847 868 2.48%BASED ON ER 7.65% OF GROSS 101-4123-22-0000 FD CITY CONTR- FIRE RELIEF 6,000 6,000 6,000 6,000 6,000 6,000 0.00%Kept same 101-4124-22-0000 FD CONTR. STATE AID FIRE RELIEF 50,174 52,546 52,743 54,716 52,083 - -100.00%FIRE RELIEF WENT TO STATE PLAN IN 2020 101-4131-22-0000 FD INSURANCE HEALTH 84,639 94,378 92,441 87,755 99,097 104,989 5.95%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4131-22-0100 FD MECHANIC ALLOC- HLTH INS 254 374 480 547 576 605 5.03%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-22-0000 FD INSURANCE WC 27,580 26,783 33,916 36,035 34,219 40,336 17.88%BASED ON 2020/2021 RENEWAL 101-4140-22-0000 FD UNIFORM EXPENSES 7,461 5,974 8,155 8,445 8,700 8,874 2.00%ADJUSTED TO ESTIMATED RUN RATE 101-4212-22-0100 FD MOTOR FUELS 5,064 6,010 6,214 5,240 7,529 6,601 -12.32%2020 contracted cost per gallon $2.13 / 2021 projection $2.23 / 3yr avg usage 101-4221-22-0000 FD SUPPLIES- EQUIPMENT 2,277 1,114 3,484 1,411 2,805 2,861 2.00%ADJUSTMENT TO USAGE / PRICE 101-4221-22-0100 FD VEHICLE REPAIRS/PARTS 16,984 10,688 13,486 4,746 10,000 10,200 2.00%2021 PROJECTED RUN RATE 101-4225-22-0000 FD FIRE PREVENTION SUPPLIES 1,346 1,811 1,373 1,530 2,000 2,000 0.00%2021 PROJECTED RUN RATE 101-4226-22-0000 FD GENERAL SUPPLIES 4,379 4,970 4,670 3,558 5,142 5,244 2.00%2021 PROJECTED RUN RATE 101-4226-22-0100 FD SHOP SUPPLIES 1,146 1,016 349 1,803 1,408 1,436 2.00%2021 PROJECTED RUN RATE 101-4227-22-0000 FD MEDICAL SUPPLIES 3,810 2,792 5,184 4,958 5,814 5,930 2.00%2021 PROJECTED RUN RATE 101-4309-22-0000 FD CONTRACTED IT & SFTW SUPPORT 22,511 25,760 27,163 31,789 32,630 37,730 15.63%BASED ON CONTRACTED IT /SW SPREADSHEET 101-4310-22-0000 FD MISC CONTRACTED SERVICES 3,552 3,016 3,063 2,221 3,180 3,290 3.46%BASED ON MISC CONTRACTED SERVICES SPREADSHEET 101-4325-22-0000 FD COMMUNICATIONS 15,512 17,020 15,686 17,213 21,800 22,930 5.18%BASED ON COMM SPREADSHEET/RADIO BUDGET INC TO RUN RATE 101-4339-22-0000 FD EQUIP REPAIRS & MAINTENANCE 2,345 84 196 685 3,450 3,519 2.00%2021 PROJECTED RUN RATE 101-4340-22-0000 FD BLDG REPAIRS & MAINTENANCE 698 - 936 617 510 520 2.00%2021 PROJECTED RUN RATE 101-4341-22-0000 FD TRAINING, CONF. & MTG.12,050 17,415 13,753 10,942 13,260 13,658 3.00%ADJUSTED TO ESTIMATED RUN RATE 101-4342-22-0000 FD MEMBERSHIPS & DUES 966 1,601 917 1,125 1,700 1,450 -14.71%ADJUSTED TO ESTIMATED RUN RATE 101-4345-22-0000 FD GRANT REIMB/EXPENDITURES 10,696 18,607 2,780 403 500 510 2.00%estimated net match expense TOTAL 1,029,340$ 1,091,110$ 1,105,292$ 1,090,527$ 1,167,607$ 1,146,915$ -1.77% PROTECTIVE INSPECTIONS 101-4110-24-0000 PI REGULAR EMPLOYEE 9,964$ 10,447$ 10,943$ 11,761$ 11,872$ 11,945$ 0.61%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4121-24-0000 PI PERA 755 786 817 850 890 896 0.61%BASED ON CURRENT PERA FUNDING RATE 101-4122-24-0000 PI FICA/MEDICARE 763 799 837 900 908 914 0.61%BASED ON ER .0765 OF GROSS 101-4131-24-0000 PI INSURANCE HEALTH 947 1,055 1,150 1,234 1,336 1,460 9.28%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4226-24-0000 PI GENERAL SUPPLIES - - - - - - 0.00% 101-4320-24-0000 PI BUILDING OFFICAL CONTRACT 95,392 118,761 91,209 74,789 77,923 79,482 2.00%EXPENSE BASED ON SHARE OF REVENUES 101-4321-24-0000 PI ELECTRICAL INSPECTOR 10,772 12,468 17,819 17,134 10,661 10,874 2.00%EXPENSE BASED ON SHARE OF REVENUES 101-4350-24-0000 PI PRINTED FORMS & ENVELOPES 92 92 433 - 104 106 2.00% TOTAL 118,685$ 144,407$ 123,208$ 106,668$ 103,695$ 105,677$ 1.91% EMERGENCY MANAGEMENT 101-4110-25-0000 EMS REGULAR EMPLOYEE 47,613$ 51,197$ 53,409$ 55,548$ 57,945$ 58,877$ 1.61%INCLUDES ESTIMATED 2021 WAGE ADJUSTMENTS 101-4121-25-0000 EMS PERA 7,678 8,281 8,613 9,371 10,256 10,421 1.61%BASED ON CURRENT PERA FUNDING RATE 101-4122-25-0000 EMS FICA/MEDICARE 690 742 774 806 840 854 1.61%1.45% FICA rate 101-4131-25-0000 EMS INSURANCE HEALTH 7,116 6,963 7,248 7,533 7,841 8,255 5.28%SPLIT 9.4% PREMUIM INCREASE IN 2021 9 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 GENERAL FUND EXPENDITURES DETAIL 101-4135-25-0000 EMS INSURANCE WC 2,894 2,948 3,741 4,123 3,770 4,441 17.80%BASED ON 2020/2021 RENEWAL 101-4221-25-0000 EMS SUPPLIES- EQUIPMENT - 239 301 - 510 520 2.00% 101-4227-25-0000 EMS MEDICAL SUPPLIES 150 - 48 - 49 50 2.00% Haz Mat medical supplies 101-4323-25-0000 EMS PAGERS, SIREN 1,251 1,237 1,289 1,233 1,500 1,530 2.00%2021 PROJECTED RUN RATE 101-4339-25-0000 EMS REPAIRS AND MAINTENANCE 221 - - 287 100 102 2.00%2021 PROJECTED RUN RATE 101-4341-25-0000 EMS TRAINING, CONF. & MTG.193 288 970 615 975 995 2.00%2021 PROJECTED RUN RATE 101-4350-25-0000 EMS PRINTED FORMS & ENVELOPES - - - - 150 153 2.00%2021 PROJECTED RUN RATE TOTAL 67,806$ 71,895$ 76,393$ 79,515$ 83,937$ 86,198$ 2.69% PUBLIC WORKS 101-4110-31-0000 PW REGULAR EMPLOYEE 273,345$ 269,329$ 278,917$ 286,839$ 299,039$ 303,715$ 1.56%See dept summaries-PR excludes other pay codes 101-4110-31-0100 PW MECHANIC 33,149 35,525 36,837 37,966 39,423 40,042 1.57%See dept summaries-PR excludes other pay codes 101-4111-31-0000 PW OVERTIME EMPLOYEE 6,005 2,897 13,518 12,285 17,690 17,900 1.19%See dept summaries-PR OT mapping to dept 31 101-4111-31-0100 PW OVERTIME MECHANIC 327 300 141 318 471 350 -25.69%Based on last three years 101-4112-31-0000 PW PART-TIME EMPLOYEE 27,407 26,592 30,018 30,300 35,812 36,886 3.00%Inflate 3% / assume extended winter conditions 101-4121-31-0000 PW PERA 21,168 20,741 21,775 22,611 23,755 24,121 1.54%BASED ON CURRENT PERA FUNDING RATE 101-4121-31-0100 PW MECHANIC ALLOC- PERA 2,594 2,742 2,845 2,948 2,992 3,029 1.25%BASED ON CURRENT PERA FUNDING RATE 101-4122-31-0000 PW FICA 21,821 21,531 22,682 23,654 26,969 27,425 1.69%BASED ON ER .0765 OF GROSS 101-4122-31-0100 PW MECHANIC ALLOC- FICA 2,778 2,899 3,028 3,157 3,052 3,090 1.25%BASED ON ER .0765 OF GROSS 101-4131-31-0000 PW INSURANCE HEALTH 59,897 57,127 60,325 60,641 63,874 71,473 11.90%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4131-31-0100 PW MECHANIC ALLOC- HI 2,480 1,310 1,680 1,915 2,016 2,117 5.01%56% Tucker 101-4135-31-0000 PW INSURANCE WC 13,525 14,096 13,436 13,198 13,412 19,285 43.79%BASED ON 2020/2021 RENEWAL 101-4140-31-0000 PW UNIFORM EXPENSES 8,567 9,650 9,137 12,504 9,547 9,738 2.00%2021 PROJECTED RUN RATE 101-4140-31-0100 PW UNIFORM EXPENSES - MECH 704 1,103 727 1,172 817 833 2.00%2021 PROJECTED RUN RATE 101-4212-31-0100 PW MOTOR FUELS MISC 1,304 976 1,080 3,460 1,406 1,434 2.00%Other non-contracted fuel / oil 101-4212-31-0200 PW MOTOR FUELS NB 70,612 75,716 88,671 77,009 84,537 7,059 -91.65%NEW BRIGHTON PW ADDED ON SITE RE-FUELING FEB 2021 101-4212-31-0300 PW FUEL - MWMO 1,124 1,462 1,488 1,164 1,775 1,405 -20.86%2020 contracted cost per gal $2.13 / 2021 projection $2.23 / 3yr avg usage 101-4212-31-0400 PW FUEL - SANB #282 3,495 3,209 8,710 10,480 11,936 10,654 -10.74%2020 contracted cost per gal $2.13 / 2021 projection $2.23 / 3yr avg usage 101-4212-31-0600 PW FUEL - STREET/PARKS 10,356 11,362 14,846 14,229 22,203 25,304 13.97%2020 contracted cost per gal $2.13 / 2021 projection $2.23 / 3yr avg usage 101-4221-31-0100 PW VEHICLE REPAIRS/PARTS 6,618 8,816 16,540 13,556 14,280 14,566 2.00%2021 PROJECTED RUN RATE 101-4223-31-0000 PW SMALL TOOLS MECHANIC 22 1,720 750 70 584 595 2.00%2021 PROJECTED RUN RATE 101-4223-31-0100 PW SMALL TOOLS 1,314 473 583 447 1,020 1,040 2.00%2021 PROJECTED RUN RATE 101-4224-31-0000 PW STREET SIGNS 1,522 563 464 2,763 2,388 2,435 2.00%2021 PROJECTED RUN RATE 101-4226-31-0000 PW GENERAL SUPPLIES 6,417 7,485 10,838 6,879 11,674 8,500 -27.19%2021 PROJECTED RUN RATE 101-4226-31-0100 PW SHOP SUPPLIES 1,678 1,958 1,499 562 2,208 3,500 58.50%2021 PROJECTED RUN RATE More general supplies being recognized as shop supplies 101-4228-31-0000 PW STREET REPAIR & MAINTENANCE 61,727 15,571 16,621 91,192 73,950 40,429 -45.33%MOVED SEALCOATING COST TO INFRASTRUCTURE FUND 101-4229-31-0000 PW STREET CHEMICALS & SAND 7,275 23,655 31,281 32,630 32,742 28,100 -14.18%2021 - 400 tons of salt, price per ton 13.1% less than 2020 101-4230-31-0000 PW STORMWATER MAINTENANCE 1,897 4,101 5,817 7,247 - - 0.00%Moved to Stormwater utility fund 101-4303-31-0000 PW CONTRACTED ENGINEER 34,172 27,572 33,093 45,932 32,760 8,415 -74.31%SUBSTANTIAL PORTION MOVED TO INFRASTRUCTURE FUND 101-4309-31-0000 PW CONTRACTED IT & SFTW SUPPORT 6,557 7,423 13,155 13,566 10,360 13,000 25.48%BASED ON CONTRACTED IT /SW SPREADSHEET 101-4310-31-0000 PW MISC. CONTRACTED SERVICES 2,153 24,941 43,978 24,399 37,425 38,174 2.00%SALO PARK CAM AND VARIOUS -2021 RATES NOT CURRENTLY AVAILABLE 101-4325-31-0000 PW COMMUNICATIONS 3,526 3,246 2,918 3,425 3,210 3,490 8.72%BASED ON COMMUNICATION SPREADSHEET 101-4339-31-0000 PW EQUIP REPAIRS & MAINTENANCE 12,639 14,786 6,452 8,701 14,500 14,790 2.00%2021 PROJECTED RUN RATE 101-4340-31-0000 PW BLDG REPAIRS & MAINTENANCE - 348 380 2,882 3,000 3,060 2.00%2021 PROJECTED RUN RATE 101-4341-31-0000 PW TRAINING, CONF. & MTG.3,756 5,475 3,499 6,835 6,500 6,630 2.00%2021 PROJECTED RUN RATE 101-4342-31-0000 PW MEMBERSHIPS & DUES 689 1,197 1,143 1,428 1,248 1,273 2.00%2021 PROJECTED RUN RATE 101-4344-31-0000 PW TRAINING CERT PROGRAMS 300 935 46 123 950 969 2.00%2021 PROJECTED RUN RATE 101-4345-31-0000 PW GRANT REIMB EXPENDITURES 12,023 540 14,338 2,832 21,938 10,969 -50.00%grant exps for opportunity grants projected in revenue section 101-4381-31-0000 PW STREETLIGHTS & SIGNALS 70,049 65,478 65,516 61,512 67,548 67,817 0.40%2021 based on usage run rates and XCEL and Centerpoint rate increases 101-4435-31-0000 PW CLEAN-UP DAY COSTS 775 - 500 - - - 0.00% 101-4499-31-0000 PW MISCELLANEOUS 50 990 - 44 157 160 2.00% TOTAL 795,817$ 775,842$ 879,273$ 942,872$ 999,168$ 873,774$ -12.55% 10 Fiscal Year 2021 ACTUAL 2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2019 BUDGET 2020 BUDGET 2021 GENERAL FUND EXPENDITURES DETAIL PARKS 101-4110-51-0000 PR REGULAR EMPLOYEE 100,528$ 101,717$ 109,030$ 112,855$ 114,965$ 116,783$ 1.58%INCLUDES ESTIMATED 2020 WAGE ADJUSTMENTS 101-4110-51-0100 TW REGULAR EMPLOYEE 27,130 28,145 29,007 29,970 31,158 31,621 1.49%INCLUDES ESTIMATED 2020 WAGE ADJUSTMENTS 101-4110-51-0200 PR COMMITTEE 180 300 180 200 359 366 2.00%Parks commission est 3 opt-in pay-assume no change for 2020 101-4111-51-0000 PR OVERTIME EMPLOYEE 2,229 1,944 1,827 2,216 3,307 3,373 2.00%BASED ON EE MAPPING 101-4111-51-0100 TW OVERTIME EMPLOYEE 369 305 1,048 1,176 867 884 2.00%BASED ON EE MAPPING 101-4121-51-0000 PR PERA 7,921 7,994 8,606 8,807 8,870 9,012 1.59%BASED ON CURRENT PERA FUNDING RATE 101-4121-51-0100 TW PERA 2,132 2,189 2,343 2,424 2,402 2,438 1.50%BASED ON CURRENT PERA FUNDING RATE 101-4122-51-0000 PR FICA/MEDICARE 7,791 8,115 8,767 9,003 9,075 9,220 1.59%BASED ON ER 7.65% OF GROSS 101-4122-51-0100 TW FICA/MEDICARE 2,186 2,258 2,357 2,459 2,450 2,487 1.50%BASED ON ER 7.65% OF GROSS 101-4131-51-0000 PR INSURANCE HEALTH 24,223 20,085 21,306 22,380 23,223 24,750 6.58%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4131-51-0100 TW INSURANCE HEALTH 4,767 5,169 5,004 5,277 5,614 6,011 7.07%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-51-0000 PR INSURANCE WC 3,258 3,520 3,286 3,641 3,976 4,738 19.16%SPLIT 9.4% PREMUIM INCREASE IN 2021 101-4135-51-0100 TW INSURANCE WC 2,116 2,339 2,191 2,455 2,651 3,159 19.16%BASED ON 2019/2020 RENEWAL 101-4212-51-0000 PW FUEL - STREET/PARKS - - - 633 - - 0.00%PW FUELS USE CONSOLIDATED UNDER STREETS DEPT 101-4226-51-0000 PR GENERAL SUPPLIES 11,193 19,832 14,357 15,538 15,810 16,126 2.00%2021 PROJECTED RUN RATE 101-4310-51-0100 TW MISC. CONTRACTED SERVICES 1,060 - - 190 - - 0.00%coded to 4338 101-4325-51-0000 PR COMMUNICATIONS 1,285 1,370 1,622 1,522 1,760 1,810 2.84%BASED ON COMMUNICATION SPREADSHEET 101-4325-51-0100 TW COMMUNICATIONS 155 171 197 147 220 230 4.55%BASED ON COMMUNICATION SPREADSHEET 101-4337-51-0000 PR STRUCTURES REPAIRS & MAINT.6,687 8,108 12,365 6,682 10,500 10,710 2.00%2021 PROJECTED RUN RATE 101-4338-51-0100 TW TREE REPLACEMENT 4,561 3,542 583 3,796 3,825 3,902 2.00%2021 PROJECTED RUN RATE 101-4339-51-0000 PR EQUIP REPAIRS & MAINTENANCE 8,554 8,327 7,857 11,090 10,250 10,455 2.00%2021 PROJECTED RUN RATE 101-4339-51-0100 TW EQUIP REPAIRS & MAINTENANCE - 52 - - 276 282 2.00%2021 PROJECTED RUN RATE 101-4381-51-0000 PR ELECTRIC AND GAS UTILITIES 20,135 19,838 19,316 19,389 19,793 20,604 4.10%2021 based on usage run rates and XCEL and Centerpoint rate increases 101-4415-51-0000 PR SS RENTALS 2,423 2,614 1,821 2,820 2,780 2,835 2.00%2021 PROJECTED RUN RATE 101-4499-51-0000 PR MISCELLANEOUS - 427 - - 108 110 2.00%2021 PROJECTED RUN RATE 101-4499-51-0100 TW MISCELLANEOUS - - 646 - 108 110 2.00%2021 PROJECTED RUN RATE 101-4671-61-0000 CS ISD 282 REC PROGRAMS 52,176 52,176 52,176 52,176 52,176 52,176 0.00%Annual Fixed amount TOTAL 293,059$ 300,536$ 305,892$ 316,846$ 326,523$ 334,192$ 2.35% OTHER EXPENDITURES AND TRANSFERS 101-4335-70-0000 INSURANCE CLAIMS 21,989$ 26,984 14,384 8,713 15,000 15,000 0.00% 101-4343-70-0000 EQUITY INTITIATIVE - 9,800 5,119 9,008 10,200 10,404 2.00%Established funding and specific tracking of initiative costs 101-4346-70-0000 COLLABORATIVE INTITIATIVE - - 1,055 11,573 11,500 11,730 2.00%Established funding and specific tracking of initiative costs 101-4347-70-0000 PROPERTY RESOURCE INTITIATIVE - - - 593 10,200 10,404 2.00%Established funding and specific tracking of initiative costs 101-4348-70-0000 SUSTAINABILITY INTITIATIVE - - 2,601 22,400 25,000 25,000 0.00%Established funding and specific tracking of initiative costs 101-4499-70-0000 NB MISCELLANEOUS - - 6,298 25,947 - - 0.00% 101-4499-23-0000 INCIDENT/DATA PRODUCTION EXPENSE 553,339 880,761 176,371 135,233 - - 0.00% 101-4920-70-0000 TRANSFER - SEVERENCE FUND 86,300 86,300 86,300 86,300 86,300 86,300 0.00%AMOUNT TO MAINTAIN SEVERENCE FUND BALANCE TOTAL 661,628$ 1,003,845$ 292,128$ 299,767$ 158,200$ 158,838$ 0.40% TOTAL FUND EXPENDITURES 7,411,957$ 7,627,593$ 7,029,590$ 7,272,415$ 7,605,976$ 7,672,904$ 0.88% TOTAL FUND REVENUE 7,285,001$ 7,708,650$ 7,137,235$ 7,355,442$ 7,622,150$ 7,682,355$ 0.79% 0.00%with 20k hi coverage CHANGE IN FUND BALANCE (126,956)$ *81,058$ 107,646$ 83,027$ 16,173$ 9,451$ -41.57%(3,826.67)$ BEGINNING FUND BALANCE 2,446,012 2,319,056 2,400,114 2,507,759 2,590,787 2,606,960 0.62% 0.00% ENDING FUND BALANCE 2,319,056$ 2,400,114$ 2,507,759$ 2,590,787$ 2,606,960$ 2,616,411$ 0.36% 2,017$ 6,835,139$ *SCHEDULED USE OF FUND BALANCE 11 2. Public Safety Commission 3. Mayor & Council Responses To Media and Community Inquiries 4. Council Meetings 5. Organized Collection TO: Mayor & Council FROM: Mark Casey, City Manager RE: Organized Collection for Refuse and Recycling DATE: July 7, 2020 On April 1, 2021, the City’s current organized collection refuse and recycling contract will expire. On April 1, 2015, the City entered into a five-year organized consortium collection contract with the three collectors who were serving the City prior to April 1, 2015. As part of the agreement, the City was divided into three zones based on the collector’s current market share. On November 26, 2019, the City entered into a one-year extension with the collectors for the same terms and conditions. Per State Statue, cities may enter into an organized collection (consortium or single collector) for a minimum of four years and maximum of seven years. Once the minimum term has progressed, cities may conduct a Request for Proposal (RFP) for a single collector. I attached a flyer that was used in 2015. In addition, there is repository of the City’s actions located on the website at: http://www.savmn.com/237/Organized-Solid-Waste-Collection Staff is recommending soliciting Request for Proposals (RFP) for a single refuse and recycling collector services beginning April 1, 2021. If terms are not agreeable, per the existing contract the City may renew the existing contract for up to two more one-year terms. Benefits for moving to a single collector would be: • Single source of education on services provided • Single source of communications to residents and City • Single source of contact for assessing unpaid collections • Potential lower costs of services provided • Opportunity to consolidate services for Spring Clean-up and City-owned facilities collections • Negotiate with just one provider for possible curbside organics and other potential services In order to meet the April 1, 2021 start date, this work would need to begin this summer. ATTACHMENT: Organized Collection Initiative (over) ORGANIZED COLLECTION INITIATIVE City of St. Anthony Village WHY ORGANIZED COLLECTION? Along with lessening physical and environmental impacts such as road degradation and wear, organized collection also provides consumer protection for residents, as pricing is both competitive and equitable . Licensed collectors do not have the ability to raise rates over time and impose additional fees and surcharges beyond the negotiated base price for services, including a ban on add-on fees such as fuel charges, environmental fees and administrative fees. THE PROCESS Organized Collection Statute 115A.94 2013 Amendment: Chapter 45-S.F. 510 Intent – create a more collaborative approach 180 day timeline modified to 60 day negotiation period with existing, licensed residential collectors Meetings 11 meetings Very productive Conducted in good faith ABOUT THE CITY 8,437 population 2.35 total square miles 24.5 miles of city streets MISSION To be a progressive and livable community, “walkable” Village which is sustainable, safe and secure. Location of the City if St. Anthony Village (over) Collectors General agreement and appreciated the City’s priorities Willingness to be cooperative partners Concerns over the proprietary and confidential nature of market share information Benefits were validated and others became apparent Consumer Protection Organized Collection Statute - consumer driven Collective bargaining – critical mass Consistent delivery of service Ensure equitable and competitive pricing Accountability in a transparent manner Price absent of additional add on fees Fuel surcharge Environmental fees Administrative fees City will ensure all provisions of the agreement are enforced WHAT WORKED Did our own market share analysis in advance 16 Priorities – Council buy-in Laid out entire process to Collector’s in the beginning including 60 days and RFP Proposal submitted including prices at a publ ic meeting – posted on City’s website Recognized Collector’s sensitivity to market share being a trade secret Discussed with Collector’s exclusivity of negotiations – “it goes both ways” Transition to RFP Consumer Protection Discussed in City’s newsletter, Council meetings, website, Twitter, Night to Unite, VillageFest, etc. Direct mailings including tri-fold & FAQ, post cards and utility bills Tied back to being a long standing goal (sustainability) LESSONS LEARNED Unprepared for non-users – had no “opt-out” provision in contract __________________________________________________ For more information contact Jerry Faust, Mayor at jerry.faust@ci.saint-anthony.mn.us or Mark Casey, City Manager at mark.casey@ci.saint-anthony.mn.us Everything including staff memos & contract are available on our website at: www.ci.saint-anthony.mn.us Hauler map before and after 16 priorities - long standing City objectives – one priority no more weight over another Allocate Adequate Staff Resources Assure All Residents Have Adequate Trash and Recycling Services Enhance Coordination Among Government Agencies Public Education and Awareness Improve Hauler Reporting Systems Improve Recycling, Composting and Waste Reduction Improve Safety Improve Standardization of Service Options Improve Value of Services Increase Use of Resource Recovery Facilities Lessen Environmental Impacts Minimize Disruption to Residents Minimize Impacts on Licensed Solid Waste Collectors Optimize Administrative Efficiency Promote Local Economic Development Reduce Road Wear Impacts 6. Good Friday & Columbus Day TO: Mayor & Council FROM: Mark Casey, City Manager RE: Good Friday & Columbus Day DATE: July 7, 2020 Currently in our labor contracts with our three unions (Police, Fire and Public Works), Good Friday and Columbus Day are paid holidays. City Hall is also closed on both those days. Staff will begin union contract negations in the coming months and wish to recommend not formally recognizing Good Friday and Columbus Day as paid holidays and instead providing staff two floating paid holidays and keeping City Hall open on those days effective 2021. 7. Affordable Housing M A R K E T V I E W P O I N T S E P T E M B E R 2 0 1 8 MARKET UPDATE:Affordable Rental Housing in the Twin Cities Production Summary 2010-2018 . . . . . . . . . . . . . . . 1-2 Populations Served, Affordability Mix, Rent Levels and Unit Types . . . . . . . . . . . . . . . . . . . . . 3-4 Production vs. Need . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Details of New Supply by Submarket . . . . . . . . . . 6-12 Top Producers, Pipeline and Case Studies . . . . 13-14 Key Issues Facing Affordable Housing . . . . . . . . . . . . 15 Emerging Tools for Affordable Rental Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Dougherty Mortgage and Affordable Housing Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-18 AFFORDABLE RENTAL HOUSING PRODUCTION: A NATIONAL IMPERATIVE The recovery of the broader housing market after the 2007-2011 collapse was welcome news to the country, but the renewed strength has not benefitted all households. Much needed new rental construction since 2013 in the nation’s metro areas has largely served middle- and upper-income renters, understandable given years’ worth of pent-up demand from the recession and the decades-long growth of baby boomer and millennial renter groups. However, construction targeted to low- and moderate-income renters has grown much more slowly this decade, and production totals across the country have fallen far short of need. Stagnant wages, rapidly increasing market rents, and the “upscaling” of older rental projects have added to the tremendous pressure on low- and moderate- income renters and the supply of units affordable to them. Civic and business leaders across the country are awakening to the severe shortage of affordable rental units and the critical role that they play in the economic and social health of the country. A wide variety of tools – among them inclusionary zoning laws, housing trust funds, tenant protection ordinances, and new funding sources – are gaining support at the state and local levels to counter cuts in many federal housing programs. However, the need for new affordable housing is vast, and the problem is only worsening. Dougherty Mortgage continually strives to be part of the solution by raising awareness of the widespread need for new affordable rental housing in all communities. We also proudly continue to help finance thousands of affordable rental units in the Twin Cities and throughout the country. We hope you find this report informative and helpful. IN THIS ISSUE: ABOUT THIS REPORT Author: Thomas G. O’Neil, Vice President, Dougherty Mortgage LLC (612-317-2122, toneil@doughertymarkets.com). Design/Layout: Shannon Churchward, Churchward Design. Data Sources: Met Council, Minnesota Housing and other government offices, project web sites, rental clearinghouse web sites, industry reports, accounts from newspapers and other media outlets, and leasing personnel, building managers, and other real estate professionals. Photos: All photos are original from Dougherty Mortgage LLC except where noted. This report is provided for educational purposes for our clients and business associates. The unauthorized use of this work is prohibited. © 2018 Dougherty Mortgage LLC. Images above: The Rose (Aeon), The Grainwood (Dominium). Disclaimer: This report assesses the seven-county Twin Cities affordable rental market as of September 2018. Projects analyzed generally contain 10 or more units. The information contained herein has been obtained from sources deemed but not guaranteed to be reliable. Accuracy and completeness are not guaranteed. Past performance does not guarantee future results. Site-specific development decisions using this report’s information should not be made without a separate and full review of all available information by professional analysts. OVERALL PRODUCTION TREND: PROGRESS MADE OVER THE DECADE Production of affordable rental housing1 clearly showed an upward trend throughout the Twin Cities over this decade, rising from just 363 units delivered in 2010 to more than 1,700 units likely to be delivered in 2018 and 1,500 more in 2019. If current forecasts hold, a total of 159 projects offering roughly 10,400 affordable units will have been built from 2010 through the end of 2019. This decade’s production has been well-balanced between general-occupancy/family units (56% of new units), age restricted/senior units (32%) and units for targeted populations (12%). General-occupancy/family units have been built all across the Twin Cities, while senior units have largely been concentrated in the suburbs (85% of new units), and units for targeted populations reserved almost exclusively to the central cities (86%). 1 For this report, affordable rental housing includes new, permanent units with rent restrictions at 60% AMI or below, built by private or public entities for general-occupancy/families, seniors, and targeted populations (e.g. long-term homeless, at-risk youth, persons with mental health or chemical dependency challenges, persons with disabilities, and other supportive housing populations). This report does not tally shelter beds or other short-term accommodations, housing preservation rehabilitations, new market-rate units that are rented at “affordable” levels, or market-rate units occupied with tenants holding rent vouchers. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (U/C) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 –Number of New UnitsSource: Dougherty Mortgage Multifamily Database * Includes veterans, long-term homeless, youth, persons with mental health or chemical dependency challenges, persons with physical or cognitive impairments and other populations with specific supportive needs. Targeted Populations* Age Restricted (Senior) General Occupancy/Family Lino Lakes Hugo Eagan Afton Grant Lakeville Andover East Bethel Orono Corcoran Plymouth Medina Ramsey Ham Lake Woodbury St. Paul Oak Grove Bloomington Rosemount Forest Lake Minnetrista Eden Prairie Shakopee Edina Burnsville Maple Grove May Township Cottage Grove Independence Minnetonka Columbus Lake Elmo Nowthen St. Francis Savage Greenfield Eureka Township Benton Township Helena Township Linwood Township Empire Township Douglas Township Camden Township Brooklyn Park Chaska Dahlgren Township Hampton Township Marshan Township Coon Rapids Belle Plaine Township Hollywood Township Vermillion Township Watertown Township Waconia Township Scandia Cedar Lake Township New Market Township Fridley Castle Rock Township Maplewood Denmark Township Prior Lake Laketown Township Roseville Inver Grove Heights Sand Creek Township Hassan Township Blakeley Township Blaine Spring Lake Township Greenvale Township Young America Township Apple Valley Oakdale Shoreview Ravenna Township Victoria Anoka Farmington Credit River Township San Francisco TownshipHancock Township Champlin Dayton Stillwater Township Sciota Township Nininger Township Arden Hills Crystal Richfield Stillwater St. Louis Park Golden Valley North Oaks Chanhassen Louisville Township Mound Waterford Township Shorewood Rogers St. Lawrence Township Mendota Heights Randolph Township Carver Wayzata MahtomediNew BrightonBrooklyn Center Baytown Township West Lakeland Township Vadnais Heights Hopkins New Hope Newport White Bear Township South St. Paul Jackson Township Jordan West St. Paul Belle Plaine Deephaven Little Canada Waconia Lakeland Elko DellwoodMounds View Fort Snelling White Bear Lake Robbinsdale Centerville Bayport Marine on St. Croix North St. Paul Columbia Heights Miesville Tonka Bay Coates Oak Park Heights St. Paul Park Circle Pines Bethel Falcon Heights Hampton Grey Cloud Island Township Sunfis h Lake Lilydale Watertown Woodland Osseo Gem Lake Randolph Vermillion Excelsior Maple Plain Long Lake Cologne Greenwood Minnetonka Beach St. Bonifacius Hanover Pine Springs Lexington Norwood Young America New Prague Spring Lake Park Spring Park New Market Lake St. Croix Beach Mayer Lakeland Shores Lauderdale Loretto Mendota New Germany Medicine Lake St. Marys Point St. Anthony Hilltop Hamburg New Trier Willernie Hastings Landfall Rockford Minneapolis ¨§¦35 ¨§¦35 ¨§¦35E ¨§¦35W ¨§¦35W ¨§¦35E ¨§¦94 ¨§¦94 ¨§¦394 ¨§¦694 ¨§¦694 ¨§¦494 ¨§¦494 ¨§¦94 ¨§¦94 Lino Lakes Hugo Eagan Afton Grant Lakeville Andover East Bethel Orono Corcoran Plymouth Medina Ramsey Ham Lake Woodbury St. Paul Oak Grove Bloomington Rosemount Forest Lake Minnetrista Eden Prairie Shakopee Edina Burnsville Maple Grove May Township Cottage Grove Independence Minnetonka Columbus Lake Elmo Nowthen St. Francis Savage Greenfield Eureka Township Benton Township Helena Township Linwood Township Empire Township Douglas Township Camden Township Brooklyn Park Chaska Dahlgren Township Hampton Township Marshan Township Coon Rapids Belle Plaine Township Hollywood Township Vermillion Township Watertown Township Waconia Township Scandia Cedar Lake Township New Market Township Fridley Castle Rock Township Maplewood Denmark Township Prior Lake Laketown Township Roseville Inver Grove Heights Sand Creek Township Hassan Township Blakeley Township Blaine Spring Lake Township Greenvale Township Young America Township Apple Valley Oakdale Shoreview Ravenna Township Victoria Anoka Farmington Credit River Township San Francisco TownshipHancock Township Champlin Dayton Stillwater Township Sciota Township Nininger Township Arden Hills Crystal Richfield Stillwater St. Louis Park Golden Valley North Oaks Chanhassen Louisville Township Mound Waterford Township Shorewood Rogers St. Lawrence Township Mendota Heights Randolph Township Carver Wayzata MahtomediNew BrightonBrooklyn Center Baytown Township West Lakeland Township Vadnais Heights Hopkins New Hope Newport White Bear Township South St. Paul Jackson Township Jordan West St. Paul Belle Plaine Deephaven Little Canada Waconia Lakeland Elko DellwoodMounds View Fort Snelling White Bear Lake Robbinsdale Centerville Bayport Marine on St. Croix North St. Paul Columbia Heights Miesville Tonka Bay Coates Oak Park Heights St. Paul Park Circle Pines Bethel Falcon Heights Hampton Grey Cloud Island Township Sunfis h Lake Lilydale Watertown Woodland Osseo Gem Lake Randolph Vermillion Excelsior Maple Plain Long Lake Cologne Greenwood Minnetonka Beach St. Bonifacius Hanover Pine Springs Lexington Norwood Young America New Prague Spring Lake Park Spring Park New Market Lake St. Croix Beach Mayer Lakeland Shores Lauderdale Loretto Mendota New Germany Medicine Lake St. Marys Point St. Anthony Hilltop Hamburg New Trier Willernie Hastings Landfall Rockford Minneapolis ¨§¦35 ¨§¦35 ¨§¦35E ¨§¦35W ¨§¦35W ¨§¦35E ¨§¦94 ¨§¦94 ¨§¦394 ¨§¦694 ¨§¦694 ¨§¦494 ¨§¦494 ¨§¦94 ¨§¦94 ANOKA WASHINGTON HENNEPIN RAMSEY CARVER SCOTT DAKOTA ´8 084Miles TWIN CITIES AFFORDABLE RENTAL SUBMARKETS 1 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES A Decade’s Worth of Production: 2010 – 2019 (U/C) New Affordable Rental Units Delivered Twin Cities Metro Area (7 Counties) AFFORDABLE RENTAL PRODUCTION SUMMARY Minneapolis St. Paul First Ring Suburbs Northeast Suburbs Northwest Suburbs Southeast Suburbs Southwest Suburbs TWIN CITIES AFFORDABLE RENTAL SUBMARKETS Central Cities of Minneapolis and St. Paul –The central cities have supported 45% of all new production this decade, dispersed across twenty-one neighborhoods. First-Ring Suburbs –Twenty-four communities that were developed largely in the 1950s and 1960s surround the central cities. They share a common need to redevelop older commercial areas with higher density housing uses. Second- and Third-Ring Suburbs and Exurban Areas –The four regional quadrants of Northwest, Northeast, Southeast and Southwest have a mix of redevelopment and infill projects on sites in second-ring suburbs, but also greenfield projects on land that is urbanizing in third-ring suburbs and exurban cities. ...BUT MORE SUBURBS HAVE JOINED THE EFFORT By all measures, affordable rental development has become more broadly dispersed across the Twin Cities in the current decade. While only five cities added new rental units in 2010, between 12 and 15 cities were adding new projects each year from 2016 through 2018. By the end of 2018, 48 suburban and exurban communities will have added new affordable rental projects during the decade, along with 21 central-city neighborhoods in Minneapolis and St. Paul. Successful, pioneering development of affordable rental housing in many suburban areas over the past nine years is helping pave the way for future projects in the years to come. Suburbs all across the Twin Cities – including communities with high affordable housing demand such as Edina, Rosemount, Dayton, Savage, Woodbury and Plymouth – have recently added new affordable rental units for the first time in decades (or ever), allowing them now to share in the great challenge of tackling the region-wide affordable housing shortage. With more cities providing new affordable rental housing, key public policy goals are advancing forward. As an example, roughly 2,600 new affordable rental units built since 2010 are located within a quarter-mile of an LRT line (existing and planned), a bus rapid transit (BRT) line or the Northstar Commuter Rail Line. This means that 29% of new affordable units offer easy transit access for low- and moderate-income renters, a vital goal for public investments in both housing development and transit infrastructure. THE URBAN CORE LEADS THE WAY... With nine years of the decade tallied (through 2018), the pattern of affordable rental development in the Twin Cities is clear: the urban core communities provide the bulk of all units. Minneapolis and St. Paul together have accounted for more than 45% (4,048 units) of all new production this decade, while the close-in first-ring suburbs have added an additional 16% (1,395 units; chart at right). In producing 61% of all new units in the Twin Cities, the central cities and first-ring suburbs over- produce relative to their proportion of population (37%), households (38%) and jobs (46%; table below). Population, Households and Employment by Development Ring Twin Cities (7 Counties) l 2020 Forecast Affordable Rental Production at Local Levels Twin Cities (7 Counties) l 2010 – 2018 Population Households Employment Minneapolis + St. Paul 738,300 24% 308,500 24% 510,000 28% First-Ring Suburbs 422,210 13% 182,500 14% 325,530 18% NW, NE, SW, SE Suburbs 1,975,160 63% 768,330 61% 961,770 54% 7-County Twin Cities 3,135,670 100% 1,259,330 100% 1,797,300 100% Source: Met Council Total New Total New Number of Areas Projects Units w/New Units Minneapolis 44 2,649 13 neighborhoods St. Paul 19 1,399 8 neighborhoods First-Ring Suburbs 19 1,395 17 cities* Southeast Suburbs 19 1,157 10 cities Northwest Suburbs 17 1,059 9 cities Southwest Suburbs 12 651 7 cities Northeast Suburbs 10 616 5 cities Total 140 8,926 69 *Includes Ft. Snelling Territory | Source: Dougherty Mortgage Multifamily Database New Affordable Rental Units by Twin Cities Submarket 2010 – 2018 Central Cities 4,048 Northeast Suburbs 616 Southwest Suburbs 651 Northwest Suburbs 1,059 Southeast Suburbs 1,157 First-Ring Suburbs 1,395 MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 2 PRODUCTION PATTERNS ACROSS THE TWIN CITIES THE CLEAR CONCLUSION: NEW UNITS SUCCEED IN MANY AREAS Affordable development in urban core areas leverages investments in public infrastructure, and often new projects fit well into the existing dense development pattern. But many mixed-use areas in the second- and third-ring suburbs also offer excellent characteristics for affordable housing, plus strong access to the 54% of metro area jobs that are found there. Sites in Bloomington, Minnetonka, Eden Prairie, Eagan, Burnsville, Maple Grove and other suburbs with high job counts would be ideal locations for new affordable housing. GENERAL-OCCUPANCY/FAMILY UNITS General-occupancy/family units have comprised 54% of all new affordable rental production so far this decade, with all parts of the Twin Cities seeing projects of this type. Eighty-seven general-occupancy projects delivered nearly 4,800 units from 2010 through 2018, roughly 530 units average per year. Developers built affordable general-occupancy units in 31 cities, representing all types of development settings. While developers typically built new general-occupancy units in the two central cities (62% of new supply), they also found redevelopment sites in first-ring suburbs, on typical suburban sites in newer suburbs, and even in such distant communities as Dayton, Farmington, Carver, Newport and Forest Lake. Ramsey, nearly 30 miles northwest of Downtown Minneapolis, has become an affordable rental development hot spot, with three new projects built within walking distance of the City’s Northstar Commuter Rail station. AGE-RESTRICTED (SENIOR) UNITS Affordable rental units for seniors have comprised 35% of all new affordable units (3,153) in this decade, across all seven submarkets. However, the distribution is greatly skewed toward the suburbs for two main reasons. First, the bulk of the Twin Cities senior population lives in the suburbs, providing a large captive audience. Second, affordable senior projects gain approval more easily in the suburbs than do projects for general-occupancy or targeted populations. Housing for targeted populations, in particular, is rarely found in the suburbs and proposals for new projects often face intense opposition. Not surprisingly, the first-ring suburbs have led the way with 912 new affordable senior rental units. The first-ring suburbs have many older homeowners who have been in their communities for 40 or more years. New rental units in their home community enable older residents to move to safer housing and keep their vital social networks and established patterns of daily living. The southeast suburbs have been a leader in affordable senior housing in the outer suburbs. Two developers, Dakota County Community Development Agency and Dominium, have produced 736 new senior units in eight southeast developments. The northeast and northwest suburbs have each seen between 350 and 450 new senior units since 2010, while Minneapolis, St. Paul and the southwest suburbs have had production of 200 to 280 new senior affordable units. UNITS FOR TARGETED POPULATIONS Affordable rental housing sites for targeted populations are more difficult to secure for a variety of reasons, but proximity to transit and supportive services are key factors. Central-city and first-ring suburban locations provide the best access to both. In the current decade, twenty projects with 976 permanent units (excluding shelter, temporary and transitional units or beds) have been built thus far in the Twin Cities. Roughly 56% of new units for targeted populations are in Minneapolis (549) and 28% are in the first-ring suburbs (278). With the exception of the northwest suburbs (100 units), there are virtually no units in the outer suburbs for targeted populations. 3 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES POPULATIONS SERVED IN NEW AFFORDABLE RENTAL UNITS 2,500 2,000 1,500 1,000 500 0 New Affordable Rental Housing by Submarket and Population Served Twin Cities 2010 – 2018 General Total Occupancy/ Targeted New Units Family Senior Populations Minneapolis 2,649 1,820 280 549 St. Paul 1,399 1,144 211 44 First-Ring Suburbs 1,395 205 912 278 Southeast Suburbs 1,157 426 731 0 Northwest Suburbs 1,059 608 351 100 Southwest Suburbs 651 427 224 0 Northeast Suburbs 616 167 444 5 Total 8,926 4,797 3,153 976 100% 54% 35% 11%Number of UnitsMinneapolisSt. PaulFirst-Ring SuburbsSoutheast SuburbsNorthwest SuburbsSouthwest SuburbsNortheast SuburbsTargeted Populations Senior General Occupancy/Family MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 4 AFFORDABILITY MIX, RENT LEVELS AND UNIT TYPES RENTAL AFFORDABILITY MIX WITHIN NEW PROJECTS Since 2010, most Twin Cities affordable rental developers have chosen to build projects in buildings that are 100% affordable; 86% of new units (7,639) opened in such a project, 107 buildings in all. Projects that are “predominantly affordable” – where 50% to 99% of the units have rent restrictions – accounted for 11% of new units delivered (952). Just 3% of new affordable rental units (335) were in projects with relatively few affordable units, either “mixed income” buildings (20%-49% affordable units) or “marginally affordable” projects (below 20%). This latter category typically included market-rate buildings with a handful of units for long-term homeless individuals. 100% Affordable Example The Cambric (Senior)-St. Paul (Dominium) Image: Dominium Rental Price Mix at New Affordable Rental Projects Twin Cities (7 Counties) l 2010 – 2018 Affordable Units as No. of No. of % of New % of Project Total Projects Affordable Units Supply 100% Affordable 100% 107 7,639 86% Predominantly Affordable 50% – 99% 15 952 11% Mixed Income 20% – 49% 9 233 2% Marginally Affordable Below 20% 9 102 1% Total 140 8,926 100% LEVEL OF RENT RESTRICTIONS AT NEW PROJECTS Nearly nine in ten new affordable rental units in the Twin Cities since 2010 have moderate rent restrictions, where rents target households earning 50% or 60% of the area median income (AMI), the income levels that qualify projects for federal low-income tax credit (LIHTC) equity funding. Much more difficult to obtain are project-based rent subsidies such as Section 8 funds, which enable developers to offer units to households with low- or very-low incomes. Such “deep subsidy” projects have accounted for 11% of new units since 2010, often at buildings with targeted populations. Deep Subsidy Example 66 West (At-Risk Youth)-Edina (Beacon Interfaith) Image: Urban Works Architects Rent Restrictions at New Affordable Projects Twin Cities (7 Counties) l 2010 – 2018 No. of Projects with No. of % of New Type of Restriction* Units** Supply Deep Subsidy (Section 8, 30% AMI) 55 996 11% Moderate Restriction (50% or 60% AMI) 127 7,830 89% Total 8,826 100% UNIT MIX WITHIN NEW RENTAL SUPPLY As with market-rate projects, the vast majority of units at affordable rental projects (non-senior) come in one- and two-bedroom layouts; 37% and 30%, respectively. Studio units, accounting for 19% of the new non-senior affordable supply, are the norm at projects with targeted populations, especially those targeted to veterans or youth. Larger units for families with children, including three- and four+-bedroom units, comprise about 14% of all new affordable units in the Twin Cities. Nearly 95% of the larger units (745) offer three-bedrooms, while only 5% of the supply (36 units) offers four or more bedrooms. The lack of four+-bedroom layouts illustrates the difficulty of financing affordable housing for larger families. Unit Mix of New Affordable Units (Non-Senior) Twin Cities (7 Counties) l 2010 – 2018 No. of Projects No. of Units % of New with Layout* in Layout** Supply Studio Units 43 1,080 19% One-Bedroom Units 75 2,090 37% Two-Bedroom Units 79 1,710 30% Three-Bedroom Units 55 745 13% Four-Bedroom+ Units 7 36 1% Total 5,661 100% * Note: Many buildings have both types of rent restrictions (deep subsidy and moderate). ** Subsidy level missing for 100 of 8,926 units in full survey. * Denotes the number of buildings that have the given unit type. Most buildings offer several types of units. ** Layout type missing for 112 of 5,773 non-senior units in full survey. 5 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES PRODUCTION VS. NEED: BIG CHALLENGES REMAIN MEASURING AFFORDABLE RENTAL PRODUCTION VS. DOCUMENTED NEED The Metropolitan Council, the regional governing body for the Twin Cities, previously produced 2011-2020 affordable housing need estimates for each community in the seven-county metropolitan area. In the chart below, Dougherty Mortgage aggregated these figures by submarket, estimated the proportion of need correlating to rental units at or below 60% AMI, and determined to what extent production has satisfied need across the Twin Cities. PRODUCTION IS MEETING JUST ONE-FOURTH OF DEMAND Production is on pace to deliver about 10,400 new affordable rental units in the Twin Cities this decade; 8,926 have been/will be delivered thus far through 2018. Given the need estimate of more than 42,000 new units for the full decade, production will only satisfy about 25% of affordable rental demand. This represents an affordable rental market penetration rate of 7% of new households in the Twin Cities; however, the rate should be closer to 30%. The current decade's production shortfall carries forward in the form of higher numbers of cost-burdened renters and households living in crowded or substandard units. VAST LACK OF SUPPLY IN THE OUTER SUBURBS The lack of new affordable rental production is particularly acute in the second- and third-ring suburbs, where 55% to 65% of Twin Cities residents live and/or work. Each year this decade, the four outer suburban regions should have collectively added nearly 3,400 new affordable rental units to keep up with household growth. Instead, they have produced just 390 new units per year on average. By the end of this decade, affordable rental production will have fallen about 30,000 units behind need in the outer suburbs. Any effort to increase production of affordable rental units in the outer suburbs is vital. The outer suburbs have made the best progress with affordable senior housing. Approximately 56% of new affordable rental units for seniors have been built there. In addition to helping older adults stay in their long-time communities as their housing needs change, new affordable rental construction for seniors produces a positive effect on the ownership market; seniors moving to affordable rental housing often free up a single-family home that is suitable for a family with children. DETAILED REVIEW OF EACH SUBMARKET The following pages discuss production details and affordable rental need in each of the seven Twin Cities submarkets that Dougherty Mortgage tracks. Affordable Rental Housing Production vs. Need Twin Cities (7 Counties) l 2010 – 2019 New Affordable Estimated Affordable Affordable Progress Toward Remaining Rental Units Household Rental Housing Rental Units Decade Rental Units Submarket Delivered1 Growth2 Penetration Rate Needed3 Production Goal Needed Minneapolis 2,649 18,234 14.5% 3,379 78.4% 730 St. Paul 1,399 12,329 11.3% 2,100 66.6% 701 First-Ring Suburbs 1,395 12,165 11.5% 3,078 45.3% 1,683 Southeast Suburbs 1,157 21,094 5.5% 9,138 12.7% 7,981 Northwest Suburbs 1,059 19,838 5.3% 7,086 14.9% 6,027 Southwest Suburbs 651 26,163 2.5% 11,987 5.4% 11,336 Northeast Suburbs 616 17,600 3.5% 5,288 11.6% 4,672 8,926 127,423 7.0% 42,056 21.2% 33,209 1) Dougherty Mortgage Multifamily Database. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 decade growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, equating to 42,056 new affordable rental units needed in the current decade. 2010 – 2018 (9 YEARS)FULL DECADE 2010 – 2019 MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 6 2010 – 2018 AFFORDABLE RENTAL PRODUCTION – MINNEAPOLIS Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 2,649 (1st) Estimated Household Growth 2 18,234 (4th) Affordable Rental Housing Penetration Rate 14.5% (1st) Full Decade Affordable Rental Units Needed 3 3,379 (5th) Progress Toward Decade Production Goal 78.4% (1st) Remaining Affordable Rental Units Needed 730 (6th) Downtown Neighborhoods: 888 St. Anthony/East Bank 342 Gateway/Mill Districts 251 North Loop 178 Elliot Park 61 Skyway Core 55 Loring Park 1 Phillips 433 Near North 365 Longfellow 322 Uptown Core 208 University Neighborhoods 131 Northeast 101 Powderhorn 87 Southwest 72 Nokomis 42 Total 2,649 2017 AND 2018 PROJECT OPENINGS: EcoVillage Apartments | 75 units New Vision | 20 units Downtown View | 46 units Millwork Lofts | 78 units Marshall Flats | 36 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: CBS (Downtown View), Indian Neighborhood Club (New Vision). PRODUCTION BY NEIGHBORHOOD: KEY PRODUCTION DETAILS: • Highest producer by far (549 units) for targeted populations; 57% of the Twin Cities total. • Broadest mix of populations served among all TC’s submarkets. • 45% of new units (1,182) are within 1/4 mile of a rail transit station. NOTABLE PRODUCTION SHORTFALLS: Senior units, especially in the Northeast, Camden, Calhoun/Isle and Southwest communities. 2010 2011 2012 2013 2014 2015 2016 2017 2018 600 500 400 300 200 100 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 338 Units MINNEAPOLIS NEW AFFORDABLE UNITS DELIVERED 2010–2018 2010 – 2018 AFFORDABLE RENTAL PRODUCTION – ST. PAUL Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 1,399 (2nd) Estimated Household Growth 2 12,329 (6th) Affordable Rental Housing Penetration Rate 11.3% (3rd) Full Decade Affordable Rental Units Needed 3 2,100 (7th) Progress Toward Decade Production Goal 66.6% (2nd) Remaining Affordable Rental Units Needed 701 (7th) Downtown Neighborhoods: 351 Western CBD 281 Lowertown/North Quadrant 70 St. Anthony/Midway 298 West 7th/Summit Hill 260 Dayton’s Bluff/Battle Creek 226 Summit University/Thomas-Dale Frogtown 144 West Side Neighborhood 76 Mac-Groveland/Highland 44 Total 1,399 2017 AND 2018 PROJECT OPENINGS: BROWNstone | 35 units Villa Del Sol | 40 units Pioneer Apartments | 144 units Wilson Ridge II | 113 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: Neighborhood Development Alliance (Villa Del Sol), Lupe Development Partners (Wilson Ridge II) Image credits – page 8: DJR Architecture (The Shoreham), Abodo (Central Park West), Dana Wheelock Photography (Richard A. Brustad Homes), Kaas Wilson Architects (The Sanctuary at Brooklyn Center), Urban Works Architects (66 West), Velair Property Management (Red Rock Square), BKV Group (The Legends of Columbia Heights), Oppidan (4800 Excelsior) PRODUCTION BY NEIGHBORHOOD: KEY PRODUCTION DETAILS: • 2nd highest producer (1,144 units) of general- occupancy/family units. • 44% of units (611) were added in warehouse or historic conversions. • 60% of new units (836) are within 1/4 mile of an LRT or BRT line. NOTABLE PRODUCTION SHORTFALLS: • Units for targeted populations needed all throughout the city. • Senior units, especially in Mac-Groveland, West 7th, Como and Payne/Phalen wards. 2010 2011 2012 2013 2014 2015 2016 2017 2018 400 350 300 250 200 150 100 50 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 210 Units ST. PAUL NEW AFFORDABLE UNITS DELIVERED 2010–2018 7 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 8 2010–2018 AFFORDABLE RENTAL PRODUCTION–FIRST-RING SUBURBS Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 1,395 (3rd) Estimated Household Growth 2 12,165 (7th) Affordable Rental Housing Penetration Rate 11.5% (2nd) Full Decade Affordable Rental Units Needed 3 3,078 (6th) Progress Toward Decade Production Goal 45.3% (3rd) Remaining Affordable Rental Units Needed 1,683 (5th) 2017 AND 2018 PROJECT OPENINGS: 4800 Excelsior | 164 units (18 aff.) 66 West Apartments | 39 units Richard A. Brustad Homes 100 units Red Rock Square | 42 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. PRODUCTION BY CITY: KEY PRODUCTION DETAILS: • 64% of units (684) were built in the west metro; 36% (390) in the east metro. • 912 new senior units leads all submarkets by far. • One in six units (224) are within 1/4 mile of an existing or planned LRT line. NOTABLE PRODUCTION SHORTFALLS: • Units for targeted populations are rare in first-ring suburbs in the eastern metro. • General-occupancy/family units are badly needed in all first-ring cities. 2010 2011 2012 2013 2014 2015 2016 2017 2018 400 350 300 250 200 150 100 50 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 308 Units FIRST-RING SUBURBS NEW AFFORDABLE UNITS DELIVERED 2010–2018 The Shoreham on France 148 units (30 aff.) Central Park West Phase I 199 units (6 aff.) The Sanctuary at Brooklyn Center 164 units Columbia Heights 191 St. Anthony 169 West St. Paul 164 Brooklyn Center 164 Fort Snelling Territory 158 Crystal 130 Maplewood 80 St. Louis Park 54 South St. Paul 54 Roseville 50 Golden Valley 45 Newport 42 Edina 39 Robbinsdale 36 Richfield 19 Total 1,395 The Legends of Columbia Heights 191 units Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 1,157 (4th) Estimated Household Growth 2 21,094 (2nd) Affordable Rental Housing Penetration Rate 5.5% (4th) Full Decade Affordable Rental Units Needed 3 9,138 (2nd) Progress Toward Decade Production Goal 12.7% (5th) Remaining Affordable Rental Units Needed 7,981 (2nd) Apple Valley 268 Cottage Grove 184 Lakeville 182 Eagan 124 Inver Grove Heights 90 Farmington 87 Burnsville 80 Rosemount 60 Woodbury 45 Hastings 37 Total 1,157 2017 AND 2018 PROJECT OPENINGS: Argonne Hills Senior Housing 62 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: Apartments.com (The Legends of Apple Valley and The Legends of Cottage Grove), Stonebridge Construction (Argonne Hills) PRODUCTION BY CITY: KEY PRODUCTION DETAILS: • Second highest producing submarket for senior units (731); 24% of new affordable senior units in the Twin Cities. • No production of units for targeted populations among 39 southeast cities. • General-occupancy/family units average only 39 units in size. NOTABLE PRODUCTION SHORTFALLS: • Units for targeted populations needed throughout the southeast region. • General-occupancy/family units are in high demand across the southeast region. 2010 2011 2012 2013 2014 2015 2016 2017 2018 900 800 700 600 500 400 300 200 100 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 914 Units SOUTHEAST SUBURBS NEW AFFORDABLE UNITS DELIVERED 2010–2018 9 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES The Legends of Apple Valley 163 units The Legends of Cottage Grove 184 units 2010–2018 AFFORDABLE RENTAL PRODUCTION–SOUTHEAST SUBURBS MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 10 2010–2018 AFFORDABLE RENTAL PRODUCTION–NORTHWEST SUBURBS Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 1,059 (5th) Estimated Household Growth 2 19,838 (3rd) Affordable Rental Housing Penetration Rate 5.3% (5th) Full Decade Affordable Rental Units Needed 3 7,086 (3rd) Progress Toward Decade Production Goal 14.9% (4th) Remaining Affordable Rental Units Needed 6,027 (3rd) Champlin 256 Coon Rapids 167 Ramsey 151 Maple Grove 146 Anoka 100 Plymouth 82 New Hope 68 Dayton 49 Medina 26 Osseo 14 Total 1,059 2017 AND 2018 PROJECT OPENINGS: The Legends of Champlin 184 units Rum River Veterans Cottages 100 units Balsam Apartments | 49 units Greenway Terrace | 54 units The Axis | 157 units (16 aff.) 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: Dominium (The Legends of Champlin), Star Tribune (Rum River Cottages), Sand Companies (Balsam Apartments), Rent.com (The Axis), Aeon (Greenway Terrace) PRODUCTION BY CITY: KEY PRODUCTION DETAILS: • Senior housing has been on rise since 2015 with 351 new units. • 62% of northwest suburbs (16/26) have had zero production this decade. • 23% of new units (241) are within 1/4 mile of the Northstar Rail Line. NOTABLE PRODUCTION SHORTFALLS: • New units for targeted populations are virtually non-existent in the northwest suburbs. • Far more general-occupancy/family units are needed than the 75 produced in a typical year. All communities need new units of this type. 2010 2011 2012 2013 2014 2015 2016 2017 2018 700 600 500 400 300 200 100 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 709 Units NORTHWEST SUBURBS NEW AFFORDABLE UNITS DELIVERED 2010–2018 Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 651 (6th) Estimated Household Growth 2 26,163 (1st) Affordable Rental Housing Penetration Rate 2.5% (7th) Full Decade Affordable Rental Units Needed 3 11,987 (1st) Progress Toward Decade Production Goal 5.4% (7th) Remaining Affordable Rental Units Needed 11,336 (1st) Prior Lake 238 Chaska 130 Minnetonka 93 Carver 68 Savage 66 Hopkins 51 Wayzata 6 Total 651 2017 AND 2018 PROJECT OPENINGS: Oxford Village | 51 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: Apartmentfinder.com (The Grainwood and Creek’s Run Phase II), hometownsource.com (Oxford Village), Apartments.com (Pike Lake Marsh) PRODUCTION BY CITY: KEY PRODUCTION DETAILS: • Second-lowest affordable production of all submarkets; highest in household growth. • No production of units for targeted populations among 59 southwest communities. • Second-lowest production total (224 units) for affordable senior housing. NOTABLE PRODUCTION SHORTFALLS: • Units for targeted populations needed throughout the southwest region. • General-occupancy/family and senior units are in high demand across the southwest. • Cities with large employment bases have lacked production, e.g., Eden Prairie, Bloomington. 2010 2011 2012 2013 2014 2015 2016 2017 2018 1,200 1,000 800 600 400 200 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 1,199 Units SOUTHWEST SUBURBS NEW AFFORDABLE UNITS DELIVERED 2010–2018 11 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES The Grainwood | 170 units Creek’s Run THs-Phase II | 36 units Pike Lake Marsh | 68 units 2010–2018 AFFORDABLE RENTAL PRODUCTION–SOUTHWEST SUBURBS MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 12 Source: Dougherty Mortgage LLC SUPPLY AND DEMAND SUMMARY Submarket 2010 – 2018 Rank 1-7 New Affordable Rental Units Delivered 1 616 (7th) Estimated Household Growth 2 17,600 (5th) Affordable Rental Housing Penetration Rate 3.5% (6th) Full Decade Affordable Rental Units Needed 3 5,288 (4th) Progress Toward Decade Production Goal 11.6% (6th) Remaining Affordable Rental Units Needed 4,672 (4th) Spring Lake Park 194 Forest Lake 142 Oakdale 101 White Bear Lake 95 Mahtomedi 79 Hugo 5 Total 616 2017 AND 2018 PROJECT OPENINGS: St. Andrew’s Family Shelter | 5 units 1) Dougherty Mortgage Multifamily Database; nine years of data. 2) Metropolitan Council: Thrive MSP 2040 Forecasts, January 2018; 2010-2020 growth averaged over nine years. 3) Metropolitan Council: 2011-2020 Allocation of Affordable Housing Need (10/4/17). Affordable rental (<60% AMI) need is calculated at 80% of the total need estimate for the Twin Cities, translating to 42,056 new affordable rental units needed in the current decade. Image credits: New Life Church (St. Andrew’s Family Shelter), after55.com (The Legends of Spring Lake Park) PRODUCTION BY CITY: KEY PRODUCTION DETAILS: • Only 167 new units built for general-occupancy/families. • Fewer than 10 units built for targeted populations among 41 southeast cities. • Relatively strong senior housing production (444 units); 3rd highest. NOTABLE PRODUCTION SHORTFALLS: • Units for targeted populations needed throughout the northeast region. • General-occupancy/family units are badly needed all across the northeast. • Closer-in suburbs such as New Brighton, Arden Hills, Fridley and Vadnais Heights have had no new units this decade. 2010 2011 2012 2013 2014 2015 2016 2017 2018 500 400 300 200 100 – Age Restricted (Senior) Targeted Populations G-O/Family Annual Need: 529 Units NORTHEAST SUBURBS NEW AFFORDABLE UNITS DELIVERED 2010–2018 The Legends of Spring Lake Park 194 units 2010–2018 AFFORDABLE RENTAL PRODUCTION–NORTHEAST SUBURBS TOP PRODUCERS AND PROJECT PIPELINE 13 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES PROJECT PIPELINE 2019 – 2020 • The central cities are again leading the way with 69% of new affordable units (1,357) under construction for 2019 or 2020 delivery. • St. Paul has a strong mix of senior and non-senior units and is leading all submarkets with 826 affordable units under construction. • With the exception of the southeast suburbs, there is little or no new affordable construction underway in the outer suburbs of the Twin Cities, areas high in population and employment. Demand for affordable housing of all types is exceedingly high in these areas. Affordable Rental Housing Pipeline Under Construction for 2019 or 2020 Delivery Twin Cities Submarkets (7 Counties) Gen-Occ. & Senior Submarket Targeted Units Units Total 1 St. Paul 551 275 826 2 Minneapolis 531 - 531 3 Southeast Suburbs - 258 258 4 First-Ring Suburbs 227 17 244 5 Southwest Suburbs 54 - 54 6 Northwest Suburbs 50 - 50 7 Northeast Suburbs - - 0 Total 1,413 550 1,963 TOP PRODUCERS: GENERAL-OCCUPANCY & TARGETED POPULATIONS • The top ten producers accounted for 60% of all new units for general-occupancy and targeted populations since 2010; 3,469 units. • Seven of the top ten producers were very active, with at least five new projects opened during the period. • Dominium has led all producers with 823 new units since 2010; eight other developers have built at least 220 new units. • The top developers have built larger projects (64 units average size), while smaller-volume developers (1-3 projects delivered) have averaged just 43 units per project. AGE-RESTRICTED (SENIOR) UNITS • All new affordable senior units since 2010 have been built by just 14 developers. • Dominium has led all producers by far, with 1,665 new senior units, or 53% of all deliveries. • Dakota County CDA and Dominium combined have opened nearly two-thirds of all new affordable senior rental projects in the Twin Cities. • One-third of production has come from developers building one or two projects of roughly 62 units in size on average. All Affordable Rental Housing Producers Senior/Age Restricted Twin Cities (7 Counties) l 2010 – 2018 No. of No. of Projects Units 1 Dominium 10 1,665 2 Dakota County CDA* 7 438 3 SCA Properties* 2 328 4 CommonBond Communities* 3 147 5 Shelter Corp. 2 118 6 Episcopal Homes 2 98 7 Washington County HRA 1 70 8 Wellington Management 1 64 9 Tim Nolde 1 62 10 Aeon* 1 54 11 Minneapolis Public Housing Authority 1 48 12 Beacon Interfaith Housing Collaborative* 1 42 13 Tealwood 1 17 14 St. Anne’s 1 2 Total 34 3,153 Top Ten Affordable Rental Housing Producers General Occupancy & Targeted Populations Twin Cities (7 Counties) l 2010 – 2018 No. of No. of Projects Units 1 Dominium 6 823 2 Sand Companies* 7 420 3 Lupe Development Partners* 3 354 4 Project for Pride in Living* 7 348 5 Ron Clark Construction 5 319 6 Dakota County CDA* 8 295 7 Aeon* 5 282 8 CommonBond Communities* 6 253 9 Sherman Associates 3 220 10 Beacon Interfaith Housing Collaborative 4 155 Subtotal –Top 10 54 3,469 All Other Developers 53 2,304 Total 107 5,773 * Includes projects done jointly with another developer. * Includes projects done jointly with another developer. 2B 2A 1 3 4B 4C 5 4B 5 5 4A CENTER ST.ST.TRAPROCK ST.OLIVINE ST.ARMSTRONG BLVD.RAMSEY BLVD.RHINESTONE ST.PERIDOT ST.146th AVE. BUNKER LAKE BLVD.SAPPHIRE SUNWOOD DRIVEZEOLITE ST.VETERANS DRIVE RAMSEY PARKWAY CENTER ST.ST.TRAPROCK ST.OLIVINE ST.ARMSTRONG BLVD.RAMSEY BLVD.RHINESTONE ST.PERIDOT ST.146th AVE. BUNKER LAKE BLVD.SAPPHIRE SUNWOOD DRIVEZEOLITE ST.VETERANS DRIVE RAMSEY PARKWAY MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 14 A New Model: Affordable Assisted Living at The Sanctuary at Brooklyn Center While there is a growing number of affordable senior housing developments for independent seniors, those in need of assisted-living services have virtually no new options. The 158-unit Sanctuary at Brooklyn Center has solved the problem and is now providing affordable assisted living in a modern facility that looks and feels like market-rate senior housing. In typical fashion, The Sanctuary used federal low-income housing tax credits to help fund construction. This keeps base rents at 60% AMI, or $904 per month. Where the project differs is its use of several federal and state financial assistance programs to provide assisted living services. Residents must qualify for medical assistance (MA) through Medicaid, have a need for 24-hour supervision and require help with at least three activities of daily living (ADLs). Once they meet the income and health-need qualifications, they gain a payment waiver that allows them access to tailored assisted living services up through memory care. Some residents seek additional financial assistance through a Group Residential Home waiver and those under age 65 gain assistance from the Minnesota Community Access for Disability Inclusion Waiver (CADI). The Sanctuary at Brooklyn Center opened on March 30, 2018 and over 60% of its 158 units were leased within five months. The remaining 40% of units are reserved while applicants complete the qualification process. Project leasing staff report extremely strong interest by potential residents and a continuous flow of calls from people all across the Twin Cities. Additional Sources: SGA Properties, Kass Wilson Architects, Sun Post AFFORDABLE HOUSING CASE STUDIES Transit-Oriented Development in the Exurbs: Greenway Terrace in Ramsey Ramsey, an exurban city nearly 30 miles northwest of Downtown Minneapolis, has become a hot spot for development this decade. Within Ramsey’s new 300+ acre downtown district known as “The COR” (The Center of Ramsey), a wide range of uses have been built including retail, office, recreation, government facilities, owned housing and multifamily housing. Nearly all new uses in The COR are within a 3/4 mile radius of the Ramsey Station for the Northstar Commuter Rail Line, the direct connector into Downtown Minneapolis. Many uses, like the new Greenway Terrace affordable apartments from Aeon, are within walking distance of the station. When it opens in fall 2018, Greenway Terrace will provide 54 affordable units to individuals and families earning 50% AMI or less. Additionally, four units will have Section 811 Project-Based Rental Assistance, four units will have Group Residential Housing (GRH) assistance, and 15 units will have Project-Based Vouchers. The many layers of funding assistance will ensure that the project is open to a wide range of households in the Ramsey area. To fund the project, Aeon utilized roughly $7.7 million in low-income housing tax credits, supplemented by an FHA-insured first mortgage under the 221(d)(4) loan program. Other sources included a loan from the City of Ramsey and sales tax and energy rebates. Additional Sources: Aeon, City of Ramsey, Finance and Commerce, Metro Transit 15 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES KEY ISSUES FACING AFFORDABLE HOUSING HURDLES TO NEW SUPPLY Vast Production Shortfall in the Suburbs – For a variety of reasons, construction of new affordable rental housing has gained only limited traction in the outer suburbs. The issue is particularly important because 55% to 65% of Twin Cities jobs and residents are located in the outer suburbs and new affordable rental housing there is in very high demand. Thousands of affordable units are needed annually in the outer suburbs. Depletion of “NOAH” Supply – Naturally occurring affordable housing (“NOAH”) units – lower-priced units privately owned without subsidy – account for 55% of the affordable rental supply in Minnesota, but the supply is dwindling. Each year, the state loses an estimated 2,000 NOAH units as properties are sold, improved and priced up in rent.1 At least half of this loss occurs in the Twin Cities, negating much of the gain made by new affordable construction. Rising Costs: Interest Rates, Building Materials and Skilled Labor – Broader interest rates have ticked up in 2018 on the heels of two federal funds rate increases, with a third increase expected in December. Construction labor and material, notably Canadian softwood lumber, have also increased in price well above inflation in recent years as a result of high material demand, new tariffs and an overall shortage of labor. Master electricians, in particular, are in great shortfall in the Twin Cities due in part to labor competition from the fast-growing solar industry. Combined, these cost factors have created incremental funding needs for affordable projects and put pressure on developers to find very valuable gap financing. NIMBYism – Opposition to affordable housing is still a powerful force throughout the Twin Cities. Projects in many areas face organized opposition claiming – despite evidence to the contrary – a wide range of purported negative impacts. A recent 68-unit project in an outlying suburb faced 10 months of opposition from 1,000 residents only to have the City Council unanimously approve the project based on the Council’s belief in overwhelming need. The attractively-built project leased quickly, has a waiting list “in the hundreds” and is home to retirees, local government workers, Target employees, service industry workers and laborers, among others. In reality, new affordable rental projects are indistinguishable from other private sector projects, and they end up being very valuable assets to a community’s housing supply. DEMAND PRESSURES Demographic Waves: Millennials (1981-1996) and Baby Boomers (1946-1964)–The two largest population cohorts in U.S. history have converged on rental housing at the same time. Millennials are in their prime rental years and comprise the largest number of renter households in poverty, 5.3 million households.2 Closely following are Baby Boomer households, 5.0 million of which also live at poverty income levels. Millennials, with age and time on their side, will hopefully work their way into higher incomes in the coming years. Baby Boomers, conversely, are starting to swell the ranks of the impoverished as their work careers cease, they spend down assets and many find that they have little or no retirement savings. Cost Burdened Households –A household paying in excess of 30% of gross income for housing costs is considered cost burdened. More than 160,000 renter households in the Twin Cities are estimated to be cost burdened.3 Many newly-formed low- income households (e.g., Millennials) become cost burdened without new construction to meet their increasing numbers. Persistent Homelessness – Many local efforts to fight the problem of homelessness have helped and the numbers have dropped by 8% since 2012. However, the most recent survey from Wilder Research in 2015 still found 6,200 homeless individuals in the Twin Cities, 35% of whom were children. Homeless individuals and families often need housing with services. Rising Rents / Stagnant Wages –Two Labor Department figures from this year show the underlying stagnation of real wages in the U.S.: The strong annual wage growth estimate of 2.9% in August was fully offset by the July inflation estimate of 2.7%. Despite longstanding wage stagnation, average rents in the Twin Cities have risen by 29% since 2010 (Marquette Advisors). 1 “The Loss of Naturally Occurring Affordable Housing,” Minnesota Housing, May 2018 and The Governor’s Task Force on Housing, August 2018. 2 “5 facts about Millennial households,” Pew Research Center, September 6, 2017. 3 “State of the State’s Housing 2017,” Minnesota Housing Partnership, March 2017. MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 16 EMERGING TOOLS FOR AFFORDABLE RENTAL DEVELOPMENT STATE AND LOCAL TOOLS Housing Trust Funds –The Minnesota Legislature passed legislation in 2017 to encourage local communities to establish local housing trust funds (LHTFs) using HRA levies and other local funds. The financing of affordable housing is one of the specified uses of LHTF monies. Minneapolis, Red Wing, St. Paul and Goodhue County either have current LHTFs or are developing them, and Duluth Mayor Emily Larson has announced plans to create a new trust fund with $1-2 million in annual money to be used for affordable housing. Tax Credit Contribution Fund –Also referred to as a “state housing tax credit,” the Tax Credit Contribution Fund would establish a program to allow Minnesota taxpayers to contribute funds to affordable housing development in return for equal credit against their state income tax liability. Investments could go toward a specific development or general loan pool that is used for several affordable projects. According to the Minnesota Housing Partnership, a similar program in North Dakota has leveraged about $5 for every $1 of investment in its fund, creating more than 2,500 affordable units across the state since 2011. TIF and TIF Pooling –Tax increment financing (TIF) is a decades-old tool to leverage the long-term gain in tax revenue from a new development to help fund its initial construction. TIF pooling allows a city to use excess tax revenues from one or more over-performing TIF districts to invest in new affordable housing projects in other parts of the city. The City of Minnetonka, as an example, is forecasting to have $3.585 million in pooled TIF funds for use between 2019 and 2022 towards new affordable rental development. Inclusionary Zoning and Opt-Out Payments – Many cities require new developments of a given size to set aside a certain portion of the units at affordable rents, ensuring that affordable housing is built in some proportion to overall growth. The City of Edina recently enacted a policy whereby all new multifamily developments of 20 or more units that require re-zoning or a comp plan amendment to provide at least 10% of rentable area to be reserved at 50% area median income (AMI) rent or 20% of rentable area to be reserved at 60% AMI rent. The policy gives developers the option to build the units in another location, build the units in partnership with another project, or buy out of the obligation for $100,000 per required affordable unit. Funds generated by this last option are then applied to another affordable development. FEDERAL TOOLS Streamlined Loan Processing for HUD Affordable Financing – Over the past three years, HUD has made a number of major changes that enable faster, easier processing of multifamily loans coupled with low-income housing tax credits (LIHTC), tax increment financing and abatements, subordinate government loans and grants, and other tools used on affordable rental projects. HUD provides clearer directions and faster loan package review and approval for all categories of affordable rental investment: new construction, substantial rehabilitation, and “heavy” refinance with repairs. Income Averaging with LIHTC Financing – In March 2018, Congress added “income averaging” as a third minimum set-aside election for LIHTC financing of affordable rental projects. The new selection allows LIHTC-qualified units to serve households earning as much as 80% of AMI as long as the property’s overall average income limit is no more than 60% of AMI. Projects selecting income averaging must set aside at least 40% of units as affordable. Income averaging should allow for more households to be served by affordable housing on the upper and lower sides of the income scale. Higher rents paid by households at the upper range (e.g., 80% AMI) would offset lower rents paid by very low- and extremely low-income households. Opportunity Zone Funds –The tax reform law of 2018 created a tax incentive through Qualified Opportunity Zones (QOZs) that could ultimately benefit affordable rental developments. Individuals and businesses that sell assets with taxable gains are allowed to invest in projects in qualified low-income areas representing about 11% of the U.S. census tracts. Qualifying investments are eligible to defer current capital gains and permanently avoid some portion of gains. While final federal rules are still being developed, there are no restrictions on using these benefits in conjunction with other development tax incentives such as LIHTC, New Markets Tax Credits (NMTC) and Historic Tax Credits (HTC). DOUGHERTY MORTGAGE AND AFFORDABLE HOUSING FINANCE 17 |MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES A LEADING LENDER WITH A NATIONWIDE PRESENCE Dougherty Mortgage LLC is a top provider of conventional and affordable multifamily financing, with offices throughout the country. Dougherty Mortgage specializes in providing access to federal agency loan programs to customers interested in Fannie Mae DUS®, Freddie Mac Program Plus®, and FHA financing solutions. Dougherty Mortgage has also been awarded designation as a lender/partner with USDA under the Community Facilities guaranteed loan program. In addition to conventional multifamily financing, Dougherty Mortgage also provides financing solutions for affordable housing, senior independent and assisted living residences, hospitals, health care facilities and student housing. Since 2011, Dougherty Mortgage has been a top-10 HUD/FHA lender in terms of the number of loans, dollar amount, or both. Dougherty Mortgage is also a Fannie Mae DUS® lender with national coverage. AFFORDABLE HOUSING FINANCE – A VARIETY OF SOLUTIONS In addition to extensive conventional financing experience, Dougherty Mortgage offers comprehensive debt solutions for affordable rental housing projects in all types of settings. As a leading Fannie Mae and HUD/FHA lender, we recognize the challenges associated with affordable housing finance and guide our clients through the process at all stages. Some of the many solutions with which we help our clients include Fannie Mae DUS® and FHA-insured mortgages, tax-exempt credit enhancement, low-income housing tax credits, historic and new markets tax credits and various government programs that offer subordinated loans or grants. Our affordable housing clients include both non-profit and for-profit multifamily housing owners, developers and operators. Whether our clients are looking to refinance, acquire, build or rehabilitate, we offer compelling financial options and work diligently to develop a creative, tailored solution for each transaction. INTEGRATED FINANCING SOLUTIONS – DOUGHERTY MORTGAGE AND DOUGHERTY & COMPANY Dougherty Mortgage LLC partners with an affiliated entity, Dougherty & Company LLC, on many affordable transactions that involve 4% low-income housing tax credits coupled with tax-exempt bonds. On all types of housing transactions, Dougherty & Company may also serve as the underwriter for tax increment revenue bonds, subordinate bonds, housing and healthcare bonds, and other types of issuances. Dougherty Mortgage LLC 90 South Seventh Street, Suite 4300 Minneapolis, MN 55402 612-317-2100 | 866-922-0786 Toll-free www.doughertymarkets.com For more information about this report, please contact Thomas G. O’Neil at Dougherty Mortgage LLC 612-317-2122, toneil@doughertymarkets.com Dougherty Financial Group LLC Dougherty Insurance Agency LLC Dougherty & Company LLC Dougherty Funding LLC Dougherty Wealth Advisers LLC Dougherty Mortgage LLC Dougherty Equipment Finance LLC Dougherty Real Estate Equity Advisors LLC THE COMPLETE GROUP OF DOUGHERTY COMPANIES MARKET UPDATE: AFFORDABLE RENTAL HOUSING IN THE TWIN CITIES | 18 HUD/FHA TRANSACTIONS FANNIE MAE TRANSACTIONS Bridgeway Apartments and Park Acres Apartments & THs $5.3 million Fannie Mae Robbinsdale and New Hope, MN January 2018 Green Twig Villas $7.3 million Fannie Mae OakParkHeights,MNl February 2018 Mill Creek Place Apartments $9.4 million Fannie Mae Douglasville, GA l April 2018 Crowell Square Apartments $1.2 million Fannie Mae Ashville, NC l May 2018 Hawaiian Gardens Apartments $12.4 million Fannie Mae Supplemental HawaiianGardens,CAl June 2018 Cottages of Frankfort $4.1 million Fannie Mae Frankfort, KY l July 2018 Briarcliff Manor $5.4 million Fannie Mae Mahtomedi, MN l July 2018 Meadow Ridge Senior Apartments $2.1 million Fannie Mae Jackson, MS l July 2018 Victory Crossing Apartments $7.1 million HUD 223(a)(7) Refi Columbus, GA l February 2017 Downtowner Apartments $5.2 million HUD 223(a)(7) Refi St. Louis, MO l March 2017 Greenway Terrace $4.8 million HUD 221(d)(4) N-C Ramsey, MN l December 2017 Green on Fourth $42.8 million HUD 221(d)(4) N-C Minneapolis, MN l January 2018 Seven Palms Apartments $22.7 million HUD 223(f) Refi Punta Gorda, FL l March 2018 Eastgate Apartments $16.1 million HUD 221(d)(4) N-C Rochester, MN l May 2018 The Legends at Berry Senior $34 million HUD 221(d)(4) N-C St. Paul, MN l June 2018 The Chamberlain $47.8 million HUD 221(d)(4) N-C Richfield, MN l July 2018 REPRESENTATIVE AFFORDABLE TRANSACTIONS 90 South Seventh Street, Suite 4300 Minneapolis, MN 55402 612-317-2100 1-866-922-0786 Toll Free www.doughertymarkets.com THE COMPLETE GROUP OF DOUGHERTY COMPANIES: Dougherty Financial Group LLC Dougherty Equipment Finance LLC Dougherty & Company LLC Dougherty Wealth Advisers LLC Dougherty Mortgage LLC Dougherty Insurance Agency LLC Dougherty Funding LLC Dougherty Real Estate Equity Advisors LLC 40 GROWTH AND EVOLUTION1977–2017 YEARS Innovative Financial Solutions Nationwide www.linkedin.com/company/dougherty-mortgage-llc?trk=biz-companies-cym www.linkedin.com/in/thomas-o-neil-b1098848/