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Home My WebLink AboutCC WS PACKET 07092024CITY OF SAINT ANTHONY VILLAGE WORKSESSION AGENDA Tuesday, July 9, 2024 at 5:30PM Members of the public who wish to attend the meeting may do so in person. Minutes Approval Of CC WS Meeting Minutes WS 06 -25 -2024.PDF Worksession Topics 2025 Initial Property Tax Levy Scenarios Deborah Maloney, Finance Director, presenting. 2025 OVERALL LEVY SCENARIOS.PDF Future Worksession Dates, Times And Agenda Items Adjournment 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. Our Mission is to promote a high quality of life to those we serve through outstanding city services. 1. A. Documents: 2. A. Documents: 3. 4. THIS PAGE LEFT INTENTIONALLY BLANK City of St. Anthony CITY COUNCIL WORK SESSION Minutes JUNE 25, 2024 Present: Mayor & Council: Mayor Wendy Webster, Councilmembers Lona Doolan, Jan Jenson, Thomas Randle, and Andrea Stephens. Absent: Staff: City Manager Charlie Yunker and Finance Director Deborah Maloney Call to Order: Mayor Webster called the Work Session to order at 5:30 p.m. 1.Approval of CC WS Meeting Minutes A.June 11, 2024 Council Work Session Meeting Minutes Motion by Councilmember Jenson, seconded by Councilmember Doolan, to approve the City Council Work Session Meeting Minutes of June 11, 2024 as presented. Motion carried 5-0. 2.Work Session Topics A.Initial Debt Levy and Updated Street Improvement Plan Finance Director Deborah Maloney reviewed the last step of the Peak to Plateau debt plan was the bonding of the 2022 street improvement. The Phase II plan Street Improvements had 2023 as an off year for Street improvements. The goal associated with Phase II is a modified pace of improvements to reduce reliance on bond financing and transition to levy support for construction cost. The 2024 levy began the transition from debt to infrastructure with an additional $560,447 added to the planned infrastructure levy without increasing the combined debt and infrastructure levy. This increase to the infrastructure levy enabled the city to cashflow the beginning of the 2024 street project and delay bonding from spring to fall, reducing the debt levy for 2025. The second phase continues to stabilize the street improvement program’s impact on the annual levy, while also reducing the reliance on debt to fund construction costs. The 2025 Annual Street improvement program had one timing change from the prior year’s plan. Anthony Lane North will be added for Mill and Overlay to take place in 2025. Other streets scheduled dates are consistent with prior years plan. The 2025 Street project reconstruction, mill and overlays and alleys. The transitioning of the debt levy to infrastructure levy began with 2024 Levy and continues in 2025. The 2025 debt levy certified will be $1,479,020. This is a decrease of $447,714 compared to the 2024 debt levy. This decrease in levy will allow the City to increase its infrastructure levy by the same amount. The result being the levy impact of the street improvement program will again be a combined flat levy for a sixth consecutive year. June 25, 2024 St. Anthony Council Work Session - 2 Charts showing the Phase II projected results and updated figures for the transition Debt Levy to Infrastructure Levy, along with the use of the infrastructure levy to reduce or replace bond financing were provided for Council review. Ms. Maloney provided the specific items for discussion and feedback: Does the Council support the 2025 scheduled Street Improvements and 2025 Debt levy as proposed? Any other aspects of the Street program/financing Staff should consider? Also provided for Council consideration were the Current Street Improvement Plan, Phase II Debt Levy Plan – extending street project schedule and 2025A Bond projected issue summary. Councilmember Randle asked if we are still in the 2 years on 1 year off mode and Ms. Maloney stated that is correct. That allows for the infrastructure fund to grow. Mayor Webster noted that monies were levied in the 3rd year to build the infrastructure account. When doing a project we would be bonding less money. Ms. Maloney stated that plan is advantageous to St. Anthony. Mayor Webster asked when the debt will expire. Ms. Maloney stated some of the debt will expire but she does not know the percentage expiring. Councilmember Jenson referred to the statement in the memo. He asked how we can begin to see how all our road improvements can be covered by the debt levy. Ms. Maloney stated this would still rely on bonding and assessments. Councilmember Jenson ask how road projects can be planned to cover in the future. Councilmember Jenson asked about the net savings that would cover a bonding. Ms. Maloney stated those numbers came from the debt levy to infrastructure page. If bonding is delayed, we will know more about the actual costs for projects. Councilmember Jenson noted for 2025 $2.5Million is flat across and includes road work. Ms. Maloney stated the infrastructure levy of $447,000 will be earning interest rather than paying interest. Councilmember Doolan noted over the long term this is a wise strategy. She appreciates the financial benefit of this. It is good we are not having to borrow such a heavy load in today’s market. Councilmember Doolan asked if the Hennepin County Kenzie Terrace is included and Ms. Maloney stated engineering didn’t have any estimates for that. Mayor Webster asked the question does the Council support the 2025 scheduled Street Improvements and 2025 Debt levy as proposed? Councilmember Jenson stated he supports the schedule shown. Councilmember Randle stated he is in favor of the plan. Councilmember Doolan stated she is also in favor and the schedule we have are the streets that need to be targeted this year. Councilmember Stephens stated she is in favor. The consensus of the Council was in support of the 2025 scheduled Street Improvements and 2025 Debt levy as proposed. Ms. Maloney suggested Staff could put together some scenarios that would show what it would look like with and without assessments. She would like to see the TIF retirements and how that would look. Mayor Webster asked the question if there are any other aspects of the Street program/financing Staff should consider? June 25, 2024 St. Anthony Council Work Session - 3 Councilmember Doolan asked if assumptions could be made if interest rates don’t go down and looking at risk of getting too substantial of an increase due to not lowering interest rates. Mayor Webster stated this year half of the streets are receiving Mill and Overlay rather than having a street reconstruction project. This helps protect the infrastructure that is in place. Ms. Maloney stated in the past the debt levy has been adopted by the City Council or does Council want it added to the total debt levy in September. Mr. Yunker stated one public hearing should be sufficient. Councilmember Doolan stated there is no increase in taxes for this levy for 2024-2025. She is comfortable not having a public hearing just for this amount. Future Work Sessions: The next Work Session will be held on July 9, 2024 in the Council Chambers. The agenda items for this work session were included in the Council packet. Future Agenda Items: Mayor Webster asked for agenda items from Councilmembers for future Work Sessions. No items were suggested. Adjournment: The meeting adjourned at 6:15 p.m. Respectfully submitted, Debbie Wolfe TimeSaver Off Site Secretarial, Inc. THIS PAGE LEFT INTENTIONALLY BLANK CITY OF ST. ANTHONY VILLAGE 2025 BUDGET OVERALL LEVY *2025 OVERALL PRELIMINARY LEVY 2024 $ Change 2025 % Change General Fund 5,938,338$ 317,754$ 6,256,092$ 5.35% HRA Fund 209,414 - 209,414 0.00% CIP Fund 368,200 60,000 428,200 16.30% Debt Service Funds 1,926,734 (447,714) 1,479,020 -23.24% Infrastructure Fund 635,447 447,714 1,083,161 70.46% Building Improvement Fund 98,000 5,000 103,000 5.10% Park Improvement Fund 15,000 5,000 20,000 33.33% Total 9,191,133$ 387,754$ 9,578,887$ 4.22% Police options Market wage adjustments /retention purposes 171,000$ 9,749,887$ 6.08% Additional BP vest supplies 25,000$ 9,774,887$ 6.35% Increase uniform allowance 7,500$ 9,782,387$ 6.43% LD billing offset tbd 50% use of $401,501 public safety aid (200,751)$ 9,581,637$ 4.25% *Factors included in Preliminary Levy estimate: 2) Health Insurance premiums increased 9.1 % - estimated for city portion of increase with current elections $31,335 4) Professional Services, Contracted IT services costs and other contracted services are up $82,000 due to activity levels and anticipated rate increases due to inflation. 5) Remaining budget items netted to an increase of $232,408 made up of a general 4% COLA estimate. These items will be studied in detail to better estimate in coming weeks 6) Reflects $921 increase in Local Government Aid 7) Base increase of 2025 charges for police services adds revenue of TBD 8) Includes TBD change in excess TIF collections. 9) Liquor transfer to General Fund remains at $275,000. 10) HRA Levy remains at same level as 2024. 11) Debt service levy at a zero levy increase. 12) Building, Infrastructure, Park improvement annual levy increases are consistent with Long Term Capital plans. CIP recommended $30,000 additional increase for city portion of Solar on Public Buildings Program. Please note that for the every $98,622 in General Fund incremental spending, equals a 1% overall levy increase. Year Levy % increase COLA 2025 4.22% 4.00% Base Levy before options 2024 5.80% 3.50% 2023 5.39% 3.00% 2022 4.80% 3.00% 2021 3.37% 2.00% 2020 4.08% 3.25% HRA, Capital and Debt Levy Impacts Past five year levy increases General Fund Cost Drivers 1) Estimated PD Unions COLA settlements at 3% , plus $5/hour adjustments, cost impact estimate $171,000 OT estimates based on 2023 actual 3) Hennepin County Assessor services will be provided with no fees to Cities per 2025 JPA, savings of $82,000 from 2024 General Fund Revenue Impacts