HomeMy WebLinkAboutCC MINUTES 08242021I CITY OF ST. ANTHONY
2 CITY COUNCIL REGULAR MEETING MINUTES
3 AUGUST 24, 2021
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5 CALL TO ORDER.
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7 Mayor Stille called the meeting to order at 7:00 p.m.
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9 PLEDGE OF ALLEGIANCE.
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11 Mayor Stille invited the Council and audience to join him in the Pledge of Allegiance.
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13 ROLL CALL.
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15 Present: Mayor Stille, Councilmembers Jenson, Randle, Walker and Webster.
16 Absent: None.
17 Also Present: City Manager Charlie Yunker and Finance Director Shelly Rueckert.
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20 CONSIDERATION, DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
21 ITEMS.
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23 I. APPROVAL OF AUGUST 24, 2021 CITY COUNCIL MEETING AGENDA.
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25 Motion by Councilmember Randle, seconded by Councilmember Webster, to approve the City
26 Council Meeting Agenda of August 24, 2021 as presented.
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28 Motion carried 5-0.
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30 II. PROCLAMATIONS AND RECOGNITION — NONE.
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32 III. CONSENT AGENDA.
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34 A. Approve August 10, 2021, Council meeting minutes.
35 B. Licenses and permits.
36 C. Claims
37 D. Resolution 21-064 a resolution to approve revised Fund Balance Policy.
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39 Mayor Stille stated revising the Fund Balance Policy increase and expands the minimum fund
40 balance range from 30-35% to 35-50%.
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42 Motion by Councilmember Jenson, seconded by Councilmember Webster, to approve the
43 Consent Agenda items.
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45 Motion carried 5-0.
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47 IV. PUBLIC HEARING —NONE.
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49 V. REPORTS FROM COMMISSION AND STAFF — NONE.
City Council Regular Meeting Minutes
August 24, 2021
Page 2
2 VI. GENERAL BUSINESS OF COUNCIL.
4 A. 2022 Budget Presentation.
6 Finance Director Shelly Rueckert reviewed at the March 9, 2021, work session, the City Council
7 and staff reviewed the proposed 2022 Debt Levy. The Debt Levy provides funding for 2022 debt
8 service payments for the Road Improvement debt, Lease Revenue debt (city buildings) and the
9 Tax Abatement debt (parks and sidewalks). The proposed 2022 Debt Levy was approved at the
10 July 131h City Council Meeting.
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12 At the June 8'h work session, Staff provided the City Council with an early projection regarding
13 the overall levy and General Fund Budget. Staff presented an updated overall levy scenario and a
14 detailed 2022 General Fund budget at the August 10`h Council work session. The City Council
15 also reviewed the proposed adjustments to the Housing Redevelopment Authority (HRA) levy,
16 Capital Improvement and Building Improvement Fund levies. The Levy proposed below reflects
17 the work session discussions.
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19 The proposed 2022 overall levy is $8,243,092 which represents an increase of $377,497 or a
20 4.80% increase compared to the 2021 overall levy.
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22 Ms. Rueckert reviewed the 2022 Budget Calendar in detail.
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24 The standard parameters used for preparing the General Fund Budget and Levy include:
25 • City revenues budgeted at current run rates for sources that are subject to trends and
26 conservative baseline estimates for re -occurring aids and charges for services.
27 • Expenses budgeted at amounts that will maintain present level of City services.
28 • Liquor transfers to the General Fund are based on liquor operating results.
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30 Diagrams showing the Path to the 2022 Tax Levy for the Operating Funds, the Capital
31 Improvements, and Debt Levy were provided for Council review.
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33 A chart showing the General Fund and Levy for 2021 and 2022 and the amount of increase was
34 shown. The overall levy by fund type consists of 64% General/HRA, 30% Debt Service and 6%
35 Capital & Building Improvements.
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37 The 2022 General Fund Revenues include 65% Tax Levy, 13% Inter -government Revenue, 12%
38 Contracts, 5% Licenses, Permits & Fines, 3% Transfers and 2% Miscellaneous.
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40 The 2022 General Fund Expenditures include 47% Police, 17% Fire, 11 % Public Works, 10%
41 Administration, 4% Parks, 4% Finance and 7% All Other.
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43 The 2022 Budget Cost Drivers are Personnel costs: 70.5% of expenditures, overall costs up
44 $229,900 or 4.24%. Union wage increases in 2022 estimated settlement amounts plus a risk
45 allowance as union negotiations are in the beginning stages. Union's scale steps and longevity
46 steps are also factored into costs. 3.2% Health Insurance premium decrease shared 50%
City Council Regular Meeting Minutes
August 24, 2021
Page 3
Employee/Employer. Includes an allowance for an additional fulltime firefighter starting mid-
2022. City staff is seeking a grant which would fund 50% of this position.
4 Contracted services: 11.0% of expenditures, overall costs up $38,217. Construction inspections
5 costs mirror the increasing permit activity producing an increase in expenses of $24,261. This
6 increase has no impact on the levy as the inspection fee is a percentage of permit revenue
7 received. Assessor, Attorney, Auditor, Engineer, Inspector and Planner services reflect rate and
8 activity increases. These factors result in a cost impact of $13,894.
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Insurance costs: 4.4% of expenditures, overall higher by $3,321. Both Worker's Compensation
and Property and Liability policies had increases in premium rates that were mitigated by
improved experience ratings.
Pass through costs: 2.2% of expenditures, costs up $1,325. City of New Brighton gasoline
purchasing ending in January 2021, which eliminated the most volatile budget item in this group
costs.
Remaining budget line items combined total $953,210 or 11.9% of expenditures, costs up
$69,481. The overall increase includes $20,000 for a community survey. 2022 budgeted
expenses anticipate returning to pre-COVID activity levels which increases spending on
communications, supplies, repairs and maintenance, training, utilities and fuels. Inflationary
factors of 3% - 6% have been applied to many of the estimated costs as well. Police contracted
services has increased by $29,065. Excess Tax Increment collections are projected to decrease by
$32,475 in 2022. General Fund investment earnings are expected to decline by $9,500 in 2022.
School District opted to eliminate the DARE program in January 2021, revenue loss of $14,500.
Statewide appeal to extend PERA Aid failed, lost revenue of $7,197.
Ms. Rueckert showed a chart of the 2022 Proposed Levies. She explained the increases from
2021 to 2022. 2021A General Obligation Bonds - $2,085,000 were issued for the construction
portion of Street Reconstruction and Utilities replacement and Mill and Overlays. In 2021, the
median value home's property taxes were $67.07 monthly for road, utility, parks and facility
improvements. The overall levy increase without Debt Levy Relief is 11.91 % and with Debt
Levy Relief is 4.80%.
Ms. Rueckert summarized the 2022 budget:
• General Fund operating budget totals $7,994,029, supported by a property tax levy of
$5,080,297.
• Personnel costs represent 70.5% of General Fund expenditures: Costs up $229,900 or
4.24%.
• Insurance expenditures up $3,321.
• Contracted services up $38,217.
• Park Improvement levy introduced $5,000.
• Other Capital Funds levies increased by $35,000
• Increase in all levies totals $377,497 or 4.80%.
City Council Regular Meeting Minutes
August 24, 2021
Page 4
The General Fund levy supports the following City Services:
• Administration
• Police
4 • Fire
5 • Public Works
6 • Finance
7 • Parks
9 In 2021 the average homeowner paid $1,313.66 for City services for a home valued at $338,000
10 which amounted to $I09.47/month.
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12 Since 1999 to date the City has been awarded $33,677,853 in Grants, Donations from local
13 businesses/residents which amounted to $3,647 per resident based on population of 9,234.
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15 Ms. Rueckert reviewed the next Steps which include:
16 • September 14, 2021 Public Hearing — Resolution setting the Preliminary 2022 Budget
17 and Property Tax Levy.
18 • December 7, 2021 Public Hearing — Approving the Final 2022 Budget and Property Tax
19 Levy and Adoption of 2022 Budget and Property Tax Levy.
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21 Councilmember Webster thanked Ms. Rueckert for her presentation. Councilmember Webster
22 stated at a work session a 6-year timeline was shared showing the increases over a 6-year period.
23 She recalled this increase of 4.80% is well within the range. Ms. Rueckert stated it is a fair raise
24 they are using. Last year 3.37% due to capital being frozen due to COVID.
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26 Mayor Stille stated when tracking other cities, St. Anthony is a little lower but very competitive
27 to other cities. Ms. Rueckert stated some differences may be for cities that have their own police
28 services vs. contracted police services.
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30 Councilmember Jenson referred to the Overall Levy by Fund Type slide, and noted the HRA
31 Levy was 64% primarily driven by personnel costs. The General Service is for street
32 maintenance and storm sewer/water main repairs. Councilmember Jenson thanked Ms. Rueckert
33 for the presentation.
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35 Mayor Stille stated delivery of services is done by staff which takes 70% of expenditures. We
36 have good people, and we need to take care of good people. The debt levy is not increasing every
37 year and it is reflected on how we care for our infrastructure. He thanked Ms. Rueckert for her
38 presentation. No Council action is necessary anytime.
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40 VII. REPORTS FROM CITY MANAGER AND COUNCIL MEMBERS.
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42 City Manager Yunker announced Nicole Miller has been named Assistant to the City Manager.
43 Staff received the official written notice from the census showing 9,257 population. The signs on
44 the highways will be updated by the Department of Transportation.
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City Council Regular Meeting Minutes
August 24, 2021
Page 5
Councilmember Webster thanked Mr. Yunker for planning the Tour of the City on August 23,
2021. It was very helpful to look at former and future projects. She appreciated knowing which
projects received funding from grant dollars.
Councilmember Randle had no report.
7 Councilmember Jenson stated on August 12, 2021 he attended the Ramsey County Local League
8 of Governments Board Meeting. On August 18, 2021 he attended the St. Anthony Historical
9 Society Board Meeting as Council Liaison and a Kiwanis Meeting. On August 21, 2021 he
10 attended Coffee with the Council and last night attended the City Tour.
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12 Councilmember Walker reported he attended Coffee with the Council on August 21, 2021 with
13 seven other attendees. He also attended the City Tour which was very informative.
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15 Mayor Stille stated the Department Heads, City Manager, Commissioners and City Council took
16 a bus to Tour the City. It was more beneficial than last year's virtual tour. He and the City
17 Manager attended this afternoon, the MN Greenstep and Tribal Nations Award Ceremony. St.
18 Anthony was one of the first six cities to become Greenstep.
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20 VIII. COMMUNITY FORUM.
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22 No one appeared to address the City Council during Community Forum.
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24 IX. INFORMATION AND ANNOUNCEMENTS.
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Mayor Stille referred to a voting postcard that residents should have received providing voting
options along with locations in Ramsey County.
X. ADJOURNMENT.
Mayor Stille adjourned the meeting at 7:46 p.m.
Respectfully submitted,
Debbie Wolfe
TimeSaver Off Site Secretarial, Inc.
ATTEST:
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