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08-27-2019 City Council Work SessionCITY COUNCIL WORK SESSION RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM AUGUST 27, 2019 5:15 PM Call to order Presentation of the 2019 Revised/2020 Proposed Budget and Tax Levy. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA SECl10N: AGENDA ITEM # Work Session Items STAFF REPORT NO. 8 WORK SESSION 8/27/2019 REPORT PREPARED BY: Chris Regis, Finance Director DEPARTMENT DIRECTOR REVIEW: Chris Regis, Finance Director 8/8/2019 OTHER DEPARTMENT REVIEW: N/A CITYMANAGER REVIEW: Katie Rodriguez, City Manager 8/23/2019 ITEM FOR WORK SESSION: Presentation of the 2019 Revised/2020 Proposed Budget and Tax Levy. EXECUTIVE SUMMARY: At the July 23, 2019 City Council study session, staff provided the City Council with an update of the 2020 Proposed budget and tax levy with the opportunity to provide feedback to staff. The 2019 Revised and 2020 Proposed Budget and Tax Levy has now been completed and will be presented for City Council review. The proposed 2020 tax levy is a 4.90% increase over the 2019 tax levy. The budget includes a balanced General Fund budget and also includes Special Revenue funds, Enterprise funds, Internal Service funds, Debt Service funds, and Capital Improvement projects budgets. The City Council will be asked to approve the 2019 Revised/2020 Proposed budget and preliminary tax levy at the September 10, 2019 City Council meeting. DIRECTION NEEDED: Tonight's work session is an opportunity for the City Council to review the 2019 Revised/2020 Proposed budget and provide direction to staff for any needed changes. BACKGROUND INFORMATION: A. HISTORICAL CONTEXT Staff has typically presented the proposed budget and tax levy to the City Council at a special budget worksession prior to approval at the first City Council meeting in September. B. POLICIES (resolutions, ordinances, regulations, statutes, etc. The City Charter establishes that at a special budget meeting of the Council on or before September 15, the City Manager must submit to the Council a proposed budget and a budget message in the form and containing the information specified in Section 7.06. C. CRITICAL TIMING ISSUES: The 2019 Revised/2020 Proposed budget and preliminary tax levy will be presented to the City Council at the September 10, 2019 City Council meeting for approval. D. FINANCIAL IMPACT: • The proposed 2020 tax levy is a 4.90% increase over the 2019 adopted levy. • The increase in the City's General Fund budget for 2020 is 4.99% over the 2019 budgeted level. E. LEGAL CONSIDERATION: N/A. ALTERNATIVE(S)- None. PRINCIPAL PARTIES EXPECTED AT MEETING: N/A. f � Timetable and Key events • Budget study session (August 27) • Adopt preliminary levy (September 10) • Truth in taxation hearing (November 26) • Certify final levy (December 10) M Key Issues for 2020 • Property taxes — primary funding source • 2020 budgeted revenues — $1,450,000 of LGA • Health insurance increases — 10% • Debt Service Levy 2019A— $388,840 • Police and fire personnel cost increases • Three additional staff positions • Reallocation of staff in Administrative Services Dept. • $815,000 rolling stock/equipment — $15,000 increase • Infrastructure needs — Ice Arena, Wood Lake Nature Center, 65t" Street History of State Aid Certified 2011 $21213,609 2011 Reduction 2012 $152185346 2013 $11218,346 2014 $159375907 2015 $2,053,363 2016 $250845057 2017 $2,094,443 2018 $252295280 2019 $21235,643 2020 $253535353 Change $300)000 $(995)263) $0 $0 $7195561 $115,456 $305694 $10,386 $1375837 $6,363 $1175710 MI'm � _ocall Government Aid Set Aside • Current balance = $4)391)213 • Uses of Funds — Buy down Portland Avenue Bonds — 2015 $800,000 — Buy down Lyndale Avenue Bonds — 2019 $1,000,000 — Budgeted transfer to GF if needed — 2020 $700,000 — Cash flow transfers to Central Garage & IT funds — Funding of recreation projects — 2017-2019 — Funding of GF purchases with payback Revenue Comparison Taxes & Intergovernmental Revenue - GF — In 2001 Taxes = 38% Intergovernmental Revenue = 39% — In 2020 Taxes = 68% Intergovernmental Revenue = 10% $1830003000 $1530003000 $1230003000 $930003000 $630003000 $330003000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LGA Comparison • Local GovernmentAid (LGA) — 2019 LGA is 4.96% of General Fund Revenues — 2020 LGA is 5.70% of General Fund Revenues • In 2001 LGA accounted for 24% of GF Revenues $4,200,000 $396009000 $39000, 000 $2,400,000 $198009000 $192009000 $6003000 O t0 I` 00 M O N M 1* O O ti w O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N C� O N CD CD N N 2020 Proposed "rosy Levy • 2020 Gross Levy is $22,687,471 — Increase of 4.90%over the 2019 Levy • General Fund Levy $17,486,394 • Equipment Levy • EDA Levy — Base Levy Total • Debt Service Levy • Tax Abatement Levy — Total 2020 Levy $ 8151000 $ 553,985 $18,855,379 $ 374787690 $ 353,402 $22,687,471 - 4.90% Fiscal Disparities • Revenue sharing program • Portion of growth in commercial and properties contributed to a tax base • Each jurisdiction commercial and industrial sharing pool contributes 40 percent of industrial growth • Distribution is based on an equalized per capita market value • Net contributor — contributes more to pool than it gets back • Richfield is a net recipient — gets more back than it contributes Levy History 2020 $2276877471 2019 $2176267692 2018 $2076217911 2017 $1974347690 2016 $1878207576 2015 $1872887524 2014 $187012)303 2013 $1777447951 2012 $1679807700 2011 $1673307041 2010 $1572887021 4.90% increase 4.87% increase 6.11 % increase 3.26% increase 2.91 % increase 1.53% increase 1.51 % increase 4.50% increase 3.98% increase 6.82% increase 6.88% increase 'ax Levy • What would the tax levy be if there was no debt service levy for Series 2019A bonds? Answer: 3.11 • Prior to 2008 there were no debt service tax levies 2020 Proposed General Fund Budget • The 2020 proposed General Fund of $25,438,820 is a: — 4.99% increase from the 2019 adopted budget — 5.07% increase from the 2019 revised budget General Fund Revenues 2019A Taxes $16, 549,150 Licenses and permits 1,066,100 Intergovernmental 2,413,850 Charges for services 2,210,420 Fines and forfeitures 3301000 Miscellaneous 1105550 Transfers 1,550,550 2019R $16, 549,150 1, 701, 500 2,447,540 2, 551, 370 3101000 96, 800 5551240 2020 P $17,311,530 1,106, 600 2, 646, 600 2, 337, 800 325, 000 108, 080 1,603,210 $24,230,620 $24,211,600 $25,438,820 2020 (2019) Proposed Budget General Fund Revenues 7% (t"/o) Taxes s$% (ss%) intergov- i Fines/Forfeits 2% (2%) Charges for Service 9% (9%) ermits D/O ) mevenue 10% (10%) m 2020 (2010) Proposed Budget General Fund Revenues M i s c . /Tra Taxes Charges for Fines/Forfeits Service 9% (5%) 2% (2%) ;e/Permits 4% (4%) Inter, ov' I Revenue General Fund Expenditures 2019P 2019R 2020P Legislative/Executive $928,660 Administrative Services 746,390 Finance 6571700 Public Safety 9,516,580 Fire 4,4411800 Community Development 1,574,280 Public Works 4,1871140 Recreation Services 11968,070 Transfers 210,000 $866,050 856,240 649,850 975077900 4 7467 7460 175767100 471067440 179717560 2107000 $927,410 961, 630 673,000 978477770 478507230 176297150 472997810 270297820 2207000 $24,230,620 $24,2117600 $25,4387820 n 2020 (2019) Proposed Budget General Fund Expenditures Recreation 8% (8%) 17% (17%) Public Works Public Safety 39% (39%) 6% (6%) Comm. D eve I . 2% 3% 4% (4%) Finance Leg/Exc. Fire 19% (19%) Transfers 1% (1%) 4% (3%) Admin. Service M 2020 Proposed Budget General Fund Expenditures Public Safety/Public Works/Fire = 75%($18,997,810) Total General Fund Tax Levy = $17,311,530 2010/2020 Expenditure Profile 8% Public Safety &Fire 55% 4"/0 21 % 5°/a Public Works Public Safety &Fire 6% 8% 58% ''' 6% 2% Public Works 1% 4% 4% General Fund F'ic-ftl 2790009000 2490009000 2170009000 1890009000 1570007000 1270007000 9,0007000 6,0007000 3,0009000 Average increase of 3.03% 2013 2014 2015 2016 2017 2018 2019R 2020 m Full-time Regu'la-w Personnel 199 Full -Time Budgeted Positions ■ 3 new positions in 2019 ■ 3 new positions in 2020 220 210 200 190 180 2008 2010 2012 2014 2016 2018 2020 2020 Proposed Levy Estimatp-H impact • $225,000 property —City Portion - Tax 2019 —City Portion -Tax 2020 —City Portion -Tax 2020 (5.2% emv) $17198.67 $11206.97 $17269.73 • $8.30 increase or $0.69 per month in city property tax portion with no change in market value • $71.06 increase or $5.92 per month in city property tax portion with estimated 5.2% increase in market value 2020 Proposed Levy �timatpd Impact • $250,000 property —City Portion -Tax 2019 —City Portion -Tax 2020 —City Portion -Tax 2020 (5.2% emv) $17331.85 $1,341-08 $17410.81 • $9.23 increase or $.077 per month in city property tax portion with no change in market value • $78.96 increase or $6.58 per month in city property tax portion with estimated 5.2% increase in market value 020 Proposed Levy :timated Impact • $275,000 property —City Portion -Tax 2019 —City Portion -Tax 2020 —City Portion -Tax 2020 (5.2% emv) $17465.04 $11475.18 $17551.89 • $10.15 increase or $0.85 per month in city property tax portion with no change in market value • $86.86 increase or $7.24 per month in city property tax portion with estimated 5.2% increase in market value 2020 Proposed Budget • 2020 Capital Improvement Budget — Total 2020 budget - $12,8457000 — Major projects include: • Continuation of the 66t" Street Reconstruction Project • Ice arena refrigeration project • Mill and overlay project • Utility projects • Recreation projects 9020 Proposed Budget • Rolling stock/equipment 2020 purchases — Total cost of equipment more than $170007000 —General Tax Levy only $815,000 —Central Garage and IT cash flow transfers in — Dump truck — Two sidewalk plows —Three detective hybrid vehicles — Two interceptor squads — Computer network infrastructure and equipment Where are we goinfm#w& • Significant right of way projects — debt funding • Recreation infrastructure needs • Pressure on Tax Levy — debt service • Richfield must continue along-term strategy for economic independence: — LGA independence — pressure to maintain — Long-term financial planning • Maintain current level of quality service • Contain operating costs Iwo% 'IV Department Budgets • Legislative and Executive • Administrative Services • Finance • Public Safety • Fire Services • Community Development • Liquor Operations • Public Works • Recreation Services Legislative/Executive • Mayor/City council • Other agencies • City manager • Legal 2018/2019 Budget Legislative/Executive Department Council/Mayor Other Agencies City Mgr. Legal TOTAL 2019 Budget $ 2359440 $ 997560 $ 246,260 347 400 928,660 2019 Revised $ 2433250 $ 9%560 $ 1753840 347 400 $ 866.050 2020 Budget $ 2179300 $ 1007860 $ 255,810 353 440 927 410 M Expenditure Comparison 2014=2019 1p03000 8003000 400,000 2015 2016 2017 2018 2019 2019R 2020 M Legislative/Executive Highlights • City council — Managed the transition to a new city manager, mayor and two council members — Developed 2020 goals and objectives at strategic planning work sessions — Provided additional equity training to staff • Other agencies — $70,480 in grants awarded to non-profit agencies — Continue to fund social service agencies Legislative/Executive Highlights • City manager — Improved work sessions to facilitate better policy discussions and transparency — Implemented weekly city manager report to improve communication with council and staff — Established regular one-on-one meetings with directors — Worked to improve communication and engagement with community, council, and staff — Worked with community organizations to increase participation in the 2020 Census — Continue to provide and review options to ensure the most cost effective and efficient means of providing services Legislative/Executive Highlights • Legal Division — Excellent representation by city legal firms — Prosecution costs increase in 2020 — Basic legal costs remain stable in 2020 M Administrative Services • General Fund Divisions — Administration — Human Resources — City Clerk/Deputy Registrar • Funds — Information Technologies Fund — Self -Insurance Fund — Cable Fund — Building Services Fund 2019R/2020 Budget Administrative Services Department 2019 Budget Admin $ 1141630 HR City Clerk TOTAL $ 69, 330 $ 562,430 746 390 2019 Revised $ 1541820 $ 52,280 $ 6491140 856 240 2020 Budget $ 1655580 $ 63,260 $ 732, 790 961 630 Expenditure History (2015=2020) $1,0003000 $8003000 $6009000 $4003000 $2003000 2015 2016 2017 2018 2019R 2020 Revenue History 2015=2020 $132009000 $1,000,000 $800,000 $600,000 $400,000 $200,000 2015 2016 2017 2018 2019R 2020 Revenue/Expenditure Comparison 2015=2020 $13200,000 $13000,000 $800po $6003000 $4003000 $200,000 2015 2016 2017 2018 2019R Budge' Highligh'L • Administration — In 2019, reallocated 100% of department director position to this budget and reclassified position — Added staff training and initiatives on racial equity — Serve on LOGIS Insurance Board — Improved medical claims experience resulted in lower health insurance premiums • 10.2% instead of 13.7% for 2020 • Human Resources — Budget reflects a decrease with removal of 40% of department director position — Implementing a flexible workplace policy Budge' Highlighi • City Clerk/Deputy Registrar — Added full-time employee in 2019 to respond to higher customer volume — Began transitioning from intermittent to part-time staff to provide a more stable workforce by offering more secure, better paying jobs — In 2020, budgeting for three seasonal employees to assist with three elections — Revenue is expected to increase by 12.3% from adopted to proposed budget due to increase in both motor vehicle transactions and passport servicesp-,w Budget Highligh*- 9 Communications and Engagement — Communications Fund pays for communication and engagement efforts, staff and audio visual equipment — Added one part-time Communications Specialist in September 2019 — Created podcast with +700 monthly listeners — Established Richfield U — New city website to launch in December 2019 Budget Highlights 9 Self Insurance/Risk Management — Fund accounts for all claims related to worker's compensation, unemployment benefits, property insurance, flex benefits and dental insurance — Fund fluctuates, depending on number and scope of claims paid during each year — For 2020, property insurance experience modifier improved, affecting our favorable rate charges — Due to a reduction in claims, worker's compensation rates were reduced for 2019 and 2020 Budget Highligh*- 9 Information Technologies — In 2020, adding one full-time staff member to respond to increased IT support needs, security requirements and technology demands — Expenses increasing due to technology needs — Increasing internal annual charges by additional 1 % in 2019 and 2020 to keep up with expenses — Tariffs impacting equipment costs — Planning new security system at Municipal Center Budget Highlight • Building Services — Responsible for the maintenance and upkeep of Municipal Center, Fire Station #2 and liquor stores — Oversaw demolition of Motel 6 and new roof and HVAC at Shops at Lyndale liquor store — User charges are reviewed annually to meet operating costs — 2020 will be the ninth year of Municipal Center operations • Anticipating upcoming replacement of essential building components inanp-a • General Fund Divisions — Finance — Assessing 2019R/2020 Budget Finance Department Finance Assessing TOTAL 2019 Budget $ 3085070 349 630 657 700 2019 Revised $ 3075010 2020 Budget $ 319,420 353 580 673 000 Expenditure History (2015=2020) $800,000 $600,000 $400,000 $200,000 2015 2016 2017 2018 2019R 2020 Budget HighlighId i • Finance — Maintain financial records of the city, HRA, and EDA — Continued GFOA and CAFR awards — Reaffirmation of city's AA+ bond rating • Assessing — Major cost is assessing contract • Hennepin County performs assessment — Responsible for special assessment processing f � Public Safety Expenditures 2018 2019 A Support $914,476 $981,370 2019 R $9967890 Police $7,773,912 $874989720 $83473,980 Em. Services $22,922 36 490 37 030 Total $8,711,310 $995169580 $%5079900 afM $1,077,240 $897339420 37 110 $998473770 Divisir expenditure Increase • The personnel services increases for 2020 reflect collective bargaining agreement step increases • Participate in funding of Joint Community Police Partnership with Hennepin County • Increase in professional services due to payments for LOGIS maintenance and software upgrades • Increase in health insurance, worker's compensation and PERA M Public Safety Budget 2018=2020 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2018 2019 Budget 2019 Revised 2020 Police Division is Focused on alternative hiring practices (Received Pathways to Policing Grant) is Completed more than 1,700 hours of community - oriented policing is Expanded community outreach is Cook Out with a Cop • Coffee with at Cop • First annual back to school event • Unity in the Community • Citizen Police Academy is 26t" Annual Safety Day is Hired two new officers Crime Trends (Part I) 1400 1200 1000 800 600 400 200 '08 109 110 '11 A 13 '14 15 16 17 18 Crime Trends (Part II) 1800 1600 1400 1200 1000 800 600 400 200 0 108 109 110 '11 12 13 '14 15 16 17 18 Calls for Service 45000 40000 35000 30000 25000 20000 15000 10000 5000 109 110 '11 12 13 '14 15 16 17 18 Support Services Division is Community service officer positions fully staffed as of July 2019 is Health administrator remains a GARE team member is Seasonal code enforcement technician position hired for summer 2019 is Relevant city ordinances have been identified for updating in 2019 and 2020 is Shared services payments to the City of Bloomington for public health work is Public health nuisance protocol is Alcohol and tobacco compliance checks Emergency Services Division • Continue growth and engagement of CERT volunteer program and amateur radio group • Provided traffic and security control at numerous community events • Police Reserves uniform and equipment maintenance and/or replacement • Coordinator compensation for Police Reserve and CERT programs • Replaced all city outdoor warning sirens Technology • Hybrid vehicles • VITALS • GETS: Government Emergency Telecommunications System M Fire Department Budget Personnel Other Services & Charges Capital Total 2018 2019 2019 2020 ctual jaudget Revised udget 3, 600, 998 636,356 4)237,354 37561010 010 685,790 4,441,800 37561090 090 711,370 4,467,460 4,143,300 706,930 4,850,230 1450 1350 1250 1150 1050 950 850 750 Fire Call Volume ------------------------- = �--------------- 1%7 -• 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 10 Year Range: 949 — 1086 (20135 2017) NFIRS 100 Category Fires (2018) W (76ih Sx 0 RL x R I fl F4r h st Di � 4 L � ti Park W 76th St s4ta DI IW p,merican Hjvd W W fi6th S1 Richfield E661h sa E 66th ,�i A, W Mh 5t W 71th 5t w 1. 77Vi�, MI Co- F 7(Frh u American~ 64yd E Fire Loss/Save Information 9 Percent Of ■ 99% 99% Property Saved Value Saved $71,325,531 $164,827,000 $22,649,383 • Saved value based on assessed value of structure 9 94% $12,085,018 • Early notification is key to early extinguishment • Robust response via strong automatic aid partnerships EMS Call Volume 4000 3800 3600 3400 3200 ...................... 3000 2800 - ..............-1100 2600 - 2400 2200 2000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • Represents 74% of incident volume • 10 year increase of 23% EMS Calls (2018) woln2 w$ » w 70Fh s, Fm > � � ƒ Par work sow � p,mmnBlk W 2 S � !A B2 � t f3ewa lifield � w 7mhSt 0 qC>k � E$» £� rImm, E7@hSt 7 k_ & k k 2 ± � a E 77» k 0 1* am.ric.n Blvd E $ k � G a 4400 4200 4000 3800 3600 3400 3200 3000 dotal Call Volume 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Incident Volume Increase of 16% All Incidents (2008=2018) Mf 1.7l LI1 aL n� w 66th St W 7ath Sz 3 � b d C � A � Park w 76th St soya 'wLt IV "erican njwd w n ep m V1 W (36t1t S1 Wield E 615th E Ii6t[i M qw W 7 Uth St E 76th • a 0 CL ti t fL :b 0 W i f UI St E 7 7VI Si r American 9a+rd E 0 r`o Key Highlights • Maintained high level of service [ GH F 1 • Implemented new response management system • Continued Spanish language training • New Engine #2 Community Development • 21 employees (17 full-time/4 part-time) — Added an additional building inspector — 8 positons are funded <25% through the city • Three divisions — Administration — Planning and Zoning — Inspections Community Development • The 2020 Proposed Budget for the city portion of Community Development is $1,629,150 • This is a 3.49% increase from the 2019 Budget — Previous increases: — 2019 = 10% 2018 = 1.08% 2017 = 1.21 % 2016 = 2.55% 2018 2019 2019 2020 Actual Approved Revised Proposed CD Admin $ 67,543 $ 69,310 $ 70,800 $ 72,900 Planning & Zoning $ 300,603 $ 307,980 $ 310,930 $ 318,560 Inspections $ 1,102,921 $ 1,196,990 $ 1,194,370 $ 1,237,690 Total $ 1,471,067 $ 1,574,280 $ 1,576,100 $ 1,629,150 Overview • Many of the more visible and exciting things Community Development does is through the HRA • Almost all of Community Development's budget expenses (90+%) are salaries, benefits and non -discretionary costs • 2017..."Business as usual" • This year..."Busier than ever" • What's busier than "Busier than ever?" • Historic development — More and more complex land -use applications — Vastly increased building permits Administration Divisir • The Administration Division budgets for most of Community Development's labor and benefits costs, but is then credited for those costs by: • Planning and Zoning Division • Housing and Redevelopment Authority • This budget also pays for the department's utility services and insurance Administration Division :xpenditures Personnel and, other Services & Charges Total Fundinq Sources General Fund 2018 $ 67,543 $ 67,543 2018 2019A $ 69,310 $ 69,310 2019A $ 675543 $ 69,310 2019R $ 70,800 $ 70,800 2019R $ 70,800 2020 $ 72,900 $ 72,900 2020 $ 72,900 Planning and Zoning Division • Staff liaisons to the Planning Commission • Maintaining and amending the Comprehensive Plan • Proactively updating and amending land use codes to remain relevant • Processing land use applications — Comprehensive Plan amendments — Rezoning — Site plan approvals — Conditional use permits — Variances M Planning and Zoning Division Expenditures 2018 Personnel $ 246,080 Other Services & Charges $ 54,523 Total $ 300,603 Funding Sources General Fund Planning & Zoning Fees Total 2018 2019A 2019R 2020 $ 2585900 $ 258, 900 $ 2657020 $ 49,080 $ 52,030 $ 53,540 $ 307, 980 $ 310,930 $ 318,560 2019A 2019R 2020 $ 267, 333 $ 281, 980 $ 290, 930 $ 2927560 $ 33,270 $ 26,000 $ 20,000 $ 26,000 $ 300, 603 $ 307, 980 $ 310, 930 $ 3187560 Planning and Zoning Division Amount $265, 020 $ 225760 $ 11,250 $ 8,000 $ 5,740 $ 5,790 $3189560 Proposed 2020 Use % Salaries & Benefits 83.2% Professional Services 7.2% Information Technologies 3.5% Professional Dev & Memberships 2.5% Communications, Postage & Legal Advertisements 1.8% Office Supplies & Copying & Other 1.8% Total 100.00% Pinnning and Zoning Division Historic/Budgeted Expenditures $400,000 $350,000 $3007000 $2507000 $200,000 $150, 000 2016 2017 2018 2019 2020 Inspections Division • Enforcement of the State Building Code — Structural — Mechanical (HVAC) — Plumbing — Electrical — Other (exiting, ADA, insulation, etc.) • Construction education and licensing • Point -of -sale inspections (600-800 annually) • Rental licensing (approximately 1,100 units) • Revenues should cover new position, overtime pay, etc. Inspections Division Expenditures Personnel Other Services & Charges Total Funding Sources General Fund Licenses & Permits Charges for Services, Etc. Total $ 8827645 2019A 2019R 2020P $ 9747690 $ 9617000 $ 992, 820 $ 220,276 $ 222,300 $ 233,370 $ 244,870 $171027921 $171967990 C$1�,194,370 $172375690 2018 $1, 022,159 $ 622,725 $1,644,884 2019A 2019R 2020P $ 227390 $ - $ - $ 6967100 $1,3517000 $ 7447100 $ 478,500 $ 152,5500 $ 501, 000 $1,1967990 C$2,103,500 $1, 245 7100 C$909,130) Inspections Division Amount Proposed 2020 Use % $ 992,820 Salaries & Benefits 80.2% $ 1147100 Professional Services 9.2% $ 38,860 Information Technologies (incl. permit software) 3.1 % $ 23,980 Rent & Utilities 1.9% $ 21,440 Vehicles, Uniforms & Inspection Supplies 1.7% $ 14,000 Electronic Payment Fees, etc. 1.1 % $ 11,070 Property and Liability Insurance 1.0% $ 7,000 Advertising, Communications & Postage 0.6% $ 7,620 Professional Dev & Memberships 0.6% 6,800 Office Supplies & Copy Charges 0.6% $1,237,690 Total 100.00% Inspections Division Historic/Budgeted Expenditures $1, 300, 000 $1,225,000 $15150, 000 $15075, 000 $15000, 000 $925, 000 $850,000 2015 2016 2017 2018 2019 2020 Inspections Division Historic/Budgeted Revenues $2,250,000 $17750, 000 $1,250,000 $750,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 f � I iquor Operations • Sales • 2019 highlights • Successful community promotions Sale Month of July 2019 • 64t" and Lyndale (+5.17%) • 66t" and Cedar (+7.28%) • 64t" and Penn (+18.48%) • 77t" and Lyndale (+6.01%) • Four stores (+8.93%) or $ 91.771 YTD ending July 31, 2019 • 64t" and Lyndale • 66t" and Cedar • 64t" and Penn • 77t" and Lyndale or $ 714,201 (-8.39%) (+2.70%) (+101.47%) (+1.06%) 1119 Highlights • Craft Beerfest • Local spirits blend for Richfield • Roof replacement at 7700 Lyndale • New cooling system at 7700 Lyndale Local promotions • Interior reader board with park improvement photos and messages • Richfield Foundation annual wine event • Round -up program • Penn Fest � �.� � ■ .� r��f L ,yrT r l i low Boom Boards Your purchase at the Richfield Linuor Stares provides direct funding for Richfield's park facilities. f � Public Works Mission "The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner." M Public Works Stat. • 54 Employees Divisions — 35 PWW —Administration — 8 Managers — 5 Engineering — 1 Forester — 4Administration/GIS — Engineering — Street/Forestry Maintenance — Park Maintenance — 1 part-time staff Utilities — 14 Seasonal —Water — Stormwater — Sewer • Central Garage (Fleet) $20.5 Million Budget (2020 Proposed) Vy.� fQTM===I General Fund 10600 —Administration $188,970 $185,220 10605 — Engineering $336,820 $245,230 10610 — Street Maintenance $2,335,600 $2,332,560 10615 — Park Maintenance $1,325,750 $1,343,430 General Fund $4,187,140 $4,106,440 Expenditure Total (0.2%) $190,700 3.0% 0.9% (27.0%) $278,560 13.6% (17.3%) (0.1 %) $2,393,320 2.6% 2.5% 1.3% $1,437,230 7.0% 8.4% (1.9%) $4,299,810 4.7% 2.7% PW General Fund Expenditures 4,500,000 4,400, 00❑ 4,300,00❑ 41,200,1000 4,100, 00❑ 4,000,000 3,900,000 3,800,000 3,700,000 3,600,000 3,500,000 3,400, 000 3,300,000 CN 0 �oP e -+-GF Expenditures t3%Trendline Administration Expenditures Personal Services Other Services & Charges Total Funding Sources General Fund Capital Projects Water Utility Sewer Utility Stormwater Utility Total 2018 $ 267,296 31 448 $298,744 2018 2019A $275,780 45 390 3 21,170 2019A 2019 R $271,894 44 130 $3161024 2019 R 2020 $284,996 45 700 $330,696 2020 $1791744 $188,970 $185,224 $190,696 $451000 $307000 $28500 $207000 24,000 $27,000 $27,000 $35,000 $257000 $377200 371300 $457000 25 000 $38,000 $38,000 $40,000 $298,744 $321,170 $316,024 $330,696 Engineering Expenditures Personal Services Other Services & Charges Tota Funding Sources General Fund Capital Projects Franchise Fee MSA Maintenance Water Utility Sewer Utility Stormwater Utility Tota 2018 2019A 2019R 2020 $572,949 $655,170 $482,816 $524,260 $93,480 $106,650 $107,420 $109,300 $666,429 $761,820 $590,236 $633,560 2018 2019A 2019R 2020 $340,546 $336,820 $245,236 $278,560 $190,487 $220,000 $185,000 $40,000 $58,980 $65,000 $20,000 $30,000 - - - $145, 000 - $20,000 $20,000 $20,000 - $20,000 $20,000 $20,000 $76,416 $100,000 $100,000 $100,000 $666,429 $761,820 $590,236 $633,560 Street Maintenance A Forestry Exaenditures Personal Services Other Services & Charges Tota Funding Sources General Fund MSA Maintenance Labor Charges/Storm Utility Streetlight User Fee Miscellaneous Tota 2018 $1,182,665 $1,081,000 $2,263,665 2018 $1,576,711 $315,000 $61,252 $297,311 $13,391 $2,263,665 2019A $1, 243,160 $1,092,440 $2,335,600 2019A $1,657,790 $315,000 $62,810 $295,000 $5,000 $2,335,600 2019R $1,224,150 $1,108,400 $2,332,550 2019R $1,654,740 $315,000 $62,810 $295,000 $5,000 $2,332,550 2020 $1,282,086 $1,111, 240 $2,393,326 2020 $1,715,516 $315,000 $62,810 $295,000 $5,000 $2,393,326 Public Works Core Services • Snow plowing • Parks/ballfields • Street sweeping • Forestry services • Infrastructure preservation • Special projects • Water treatment/distribution • Sanitary and storm sewer system • New median maintenance and sidewalk and cycle track snow removal/bandshell oTotal Reactive Work orders (1826) Utilities (1045) operations (781) 300 i Reactive Work orders 250 By Month 200 232 150 183 179 169 145 141 109 155 ° 154 ° Im 100 125 112I 119 79 128 0 0 901 0 0 95 62 0 102 102 103 88 81 87 50 0 74 76 67 64 OWA m [ 46 ]' [ 57 51 51 51 37 31 51 0 R m 6. a R m .0 .0 .0 .0 R a ' a E u E 0 Al o N x a 1200 1000 • 1001 800 600 Reactive Work Orders 400 By category 200 16 23 20 0 - � . 0 m - 0 . � . ____j - Parks 1 Forestry Streets Lights Sanitary Stormwater Water Facilities Ft Roads Ft Signs Issues Issues Issues __ Ongoing Capital Improvements • Lyndale Avenue • Mill and overlay • Water main lining • Sewer main lining • 65t" Street • 77t"Underpass These projects represent nearly $62M in local infrastructure improvements. Central Garage 61000 — Central Garage $2,983,850 $2,867,480 (3.9%) $2,710,100 (5.5)% (9.17%) 2019 Purchases 2020 Purchases Public Works Z-mower $20,000 Public Works 1-Ton Pickup w/TommyGate $50,000 1-Ton Dump & Plow (2) $100,000 3/4 Ton Utility 4x4 Tool Cat $50,000 $65,000 Dump Truck p $220,000 MT Sidewalk Plows (2) $260,000 Community Development 1-Ton Utility Box Truck $40,000 Inspections PHEV SUV (2) $70,000 3/4 Ton Pickup Truck $35,000 Fire Fire Pumper Body $303,100 Fire Police Fire Tahoe $50,000 SUV Interceptors (4) $150,000 Detective Hybrid Cars (3) $85,000 Police VOTAF Police SUV's (3) $70,000 SUV Interceptors (2) $85,000 Recreation Svcs Detective Hybrid Cars (3) $90,000 Zamboni $111,630 ja�� Hybrid SUVs and carp Mitsubishi Outlander Plug-in Hybrid Electric Vehicle — All electric range - 22 miles — Estimating fuel reduction of $360/year/vehicle — Inspectors drive about 5000 miles/year — 2 vehicles in 2019 Ford Fusion Hybrid Cars for Public Safety Detectives — Combined 42 MPG — 3 vehicles in 2019, 3 in 2020 I�l� Ar W� Him.-tiix� Utility Funds Summary 51000 — Water Utility 52000 — Wastewater Utility 53000 — Stormwater Utility $6,248,950 $6,549,270 4.8% $6,153,930 (6.03%) (1.52%) $4,562,000 $4,577,000 $2,502,390 $2,767,040 • Metropolitan Council Environmental Services • Weather/water use • Condition assessment • Renewal plan 0.3% $4,499,580 (1.7%) 10.6% $2,866,100 3.6% (1.37%) 14.53% Water Usage 2006 - 2018 2006: 1355.5 3 13-yr Avg: 1135 MG/Y MG/YR 2018: 991.46 MG/YR Proudly Serving Richfield I� New Play Equipment • Jefferson Park • Nicollet Park • Taft Park m Wood Lake Nature Center Prairie Restoration Richfield Community Bandshell All- 111bit-A -- ' :I Tlir llr�'+^ j[YO�MIIN� Sidewalk Poetry fl�e i,r,7.r The tall. st tree wns r,nce a seed �n ss fit Feranf se:��- if Fore ni an ie iY]um Icl it :�e .i��lr--• Struggling to plant its roofs fad by rain and nun to Ihd-e •1 .s its ilg Si rrcC inei norW If h, .ip you can give.. it A,gc tar bamble Cleo d. ro be n pits ra s '"one. to one day bear Its fruits irf I bg u6m - _ pint some means many ere them after years of endeavor end you �+c i Pc+r ra neighin• Triend o WfOt�flr• once the canopy has rose it once sieod solitary rnd me be ynrl 51r�nger, such lebais metler nvr- from rig deuv n 0u where nOw it sta rid arnd ng a gre 0i-u e. .')U be IT•u Al :711 "S .id' LAB A # rinl le5eon The r�p6t important ana shag cv ir't8 Alex Dahl a -re plar'L. ..-. _ I am a Puerfo'Rican female • - YSa.�utifri} IZichfl eid. our ui'L9ari lYc•me:EW,Wn I have light brawn e_ges and cvr9q hx Frain 94 Lip to the Cr'M6tQVV" am from a Family ofq 1.8kasarid trees. l�ritl rt3l naa �r+d bnrSa I am from rice, beans £r tamales j,MFJLns that f1C 16-13h ?atrrril•ie,5 that tirk"riolt 1`m a product of a •communify that •heat. P la41 a Of a1! a�.. ire off Iif-" !'l .� others of different races as less -rheae. aare, fhC. ray sosl , why I'm a driven individual that will not it'd be hard to ea9 VOdLlyffi 588 myself as of S8r5. do, 3'm a 5$rong $Ut 5 h'arever iri this wc9r�d sass Wall, ��. lay 'nr_ beautiful; arFis'iic fte.rto. Rican WOMen .' Richfield llll3 irlex:crtra +xis! r�l+ns�iiis J,s,S ;a Mathias coners 5hayla Colon Y rr A u� Tli� Richfield Public A " • Following the public art proposal put before the council on July 16, 2018: — Businesses, developers, and other organizations are invited to submit proposals with a 2:1 matching requirement (up to $10,000) — Proposals would require a funding plan — The Richfield Arts Commission would make recommendations to the council on proposals, and following approval, funding would be budgeted the following year for the art project — The $10,000 would come from both the round -up program and/or CI P Funds, but this will take away from other recreation priorities Richfield Public Art (2020) qn19 Performance Measures • Recreation Services General Fund — Recreation program registrations ........................29,310 — Wood Lake Nature Center visits..........................227500 — Veterans Memorial engravings sold.....................30 ($12,000) — Wood Lake Nature Center volunteer hours ............ 41200 — Dollars saved from volunteer hours ......................$1067810 a II Boutiqu GREAT PUMPKIN 61VEA\Y/AY4D SKATE WITH SAN TA I'\,�� FRIENDS OF WOOD LAKE FUNDRAISING DINNER WOOD LAKE NATURE CENTER f�Hmmeca-�" AICNfIFlO 31d & 4fh of ITY-WIDE rwARArwE SALE J,p, J, j j POOLAPALOOZA CandfleflOght & mce New Year's Eve @ Wood Lake • Honoring All Veterans MEMORIAL DAY YOUTH CEREMONY ` FISHING CLINIC General Fund Summary RecrP*n'ion Administration Estimated 2019 and 2020 expenses are projected to be lower by 5.9% and 3.7% due to the lower starting salary of the new Recreation Services Director. RecrP*-"1"ion Programs 2019 Adopted EXPENDITURES 2019 Revised 2020 Proposed $1,038,020 $190383370 0% $1,085,6404.6% REVENUE 2019 Adopted 2019 Revised 2020 Proposed $3543820 $349,840 -1.4% $3425190-3.6% • Expenditures will increase by $48,000 in 2020, mainly due to increases in personnel costs (salary step increases and the addition of an intern). • Revenues are expected to decrease, primarily due to adult softball leagues declining. Wood Lake Nature Center 2019 Adopted EXPENDITURES 2019 Revised 2020 Proposed $5545460 $579,9004.6% $582,380 5.0% REVENUE 2019 Adopted 2019 Revised 2020 Proposed $905050 $915730 1.9% $9250602.2% Expenditures in the 2019 Revised and 2020 Proposed budgets will increase by 4.6% and 5% due to the addition of the Sustainability Specialist position. Recreation Services SPECIAL REVENUE FUNDS SPECIAL REVENUE 2019 A FUNDS: SOURCES 2019 R 2020 P Arena 1,1695390 17237,170 45959,990 Pool 507,010 537,310 5637150 Mini-Golf/Shelter 467090 141,190 407400 157221490 SPECIAL REVENUE 2019 A 199155670 11.2% FUNDS: USES 2019 R 51563,540 2230/0 2020 P Arena 9935860 1,0267470 4,755,310 Pool 4641420 466,860 4813490 Mini-Golf/Shelter 46,460 1377690 477970 15504,740 FUND BALANCE INCREASEMECREASE 2019 A 15631,020 8.4% 2019 R 512843770 251 % 2020 P +217,750 +2847650 +278,770 Ice Arena 2019 Adopted 2019 Revised 2020 Proposed $1,16%390 M I 1 $1,237,170 0 1 $4,95%990 1$ 2019 Adopted 2019 Revised 2020 Proposed $993,860 $13026,470 $43755,310 FUND BALANCE INCREASEMECREASE 2019 Adopted 2019 Revised 2020 Proposed +$1753530 +$2107700 +$2043680 Increased revenue through curling and private lesson time Refrigeration system replacement in 2020 �L4& Outdoor Pool Pool season pass and daily sales remain strong In 2020, we will be adding more shade and patio furniture Pool Performance Measures DAILY ADMISSION REVENUE TOTAL PASS ATTENDANCE LIVING SOCIAL SEASON PASSES SOLD REGULAR SEASON PASSES SOLD 2018 A 019, 2019 R .Ji $104)727 $108)760 $1081760 30,813 11635 31,500 13900 454 32,000 1,971 570 Special Facilities (Mini -golf and Picnic Facilities) 2019 Adopted 2019 Revised 2020 Proposed $46,090 $1411190 $40,400 2019 Adopted 2019 Revised 2020 Proposed $46,460 $137,690 $47,970 FUND BALANCE INCREASEMECREASE 2019 Adopted 2019 Revised 2020 Proposed -$370 +$3,500 -$79570 • Improvements made to building and patio in 2019 • New efforts to increase shelter revenue in 2020 P- CITY OF RICHFIELD MINNESOTA PROPOSED BUDGET 2020 BUDGET TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal City Officials Administrative Organization Chart City Fund Structure BUDGET SUMMARY INFORMATION Page No 4 19 20 21 Summary of 2019 Revised Budget - All Funds 23 Summary of 2020 Budget - All Funds 24 2018-2020 Summary of Financial Sources and Uses and Changes in Fund Balances 25 Comparative Analysis of Revenue - All Funds 27 Comparative Analysis of Expenditure - All Funds 28 Comparative Analysis of Expenditure - By Major Objective All Funds 29 OPERATING BUDGETS General Fund Analysis Comparative Analysis of 2019 Adopted, 2019 Revised and 2020 Budget - General Fund 31 Comparative Analysis of Fund Balance - General Fund 32 Comparative Analysis of Revenues - General Fund 33 Comparative Analysis of Expenditures - General Fund 35 General Funds Legislative/Executive - Summary 38 City Council/Mayor 39 Other Agencies 43 City Manager 45 Legal 49 Administrative Services - Summary 52 Administration 53 Human Resources 56 City Clerk/License/Election 59 Finance - Summary 64 Finance 65 Assessing 68 Public Safety - Summary 70 Support Services 71 Police 75 Emergency Services 79 Fire - Summary 82 Fire 83 Community Development - Summary 88 Community Development Department 89 Planning & Zoning 92 Inspections 94 Public Works - Summary 98 Administration 99 Engineering 102 Street Maintenance 106 Park Maintenance 109 -2- 2020 BUDGET TABLE OF CONTENTS Page No General Funds (continued) Recreation Services - Summary 114 Recreation Services Administration 115 Recreation Programs 118 Wood Lake Nature Center 122 Special Revenue Funds Liquor Contribution Fund 126 Tourism Administration 127 Communications Fund 128 Elections Fund 131 Drug/Felony Forfeiture 132 Public Safety Compliance 133 Recreation Services Contributions 134 Nature Center Contributions 135 Public Health Grants 136 Wood Lake Half Marathon 137 Franchise Fees 138 Ice Arena 139 Swimming Pool 141 Special Facilities 142 Enterprise Funds Liquor Operations Fund - Summary 144 Liquor Operations 145 Lyndale Store 148 Cedar Store 152 Penn Store 156 Wine & Spirits 160 Water and Wastewater Utilities - Summary 164 Water Utility 167 Wastewater Utility 177 Stormwater Utility - Summary 185 Stormwater Utility 186 Internal Service Funds Central Garage - Summary 198 Information Technologies - Summary 206 Property Liability Self Insurance - Summary 214 Building Services - Summary 220 Debt Service Funds Debt Services Mission Statement 228 General Obligation Improvement Bonds 229 General Obligation Improvement Bonds Scheduled Debt Service Requirements 230 General Obligation Redevelopment Bonds 231 General Obligation Redev. Bonds Scheduled Debt Service Requirements 232 Computation of Legal Debt Margin 233 Capital Improvement Funds Capital Improvement Budget and Plan Mission Statement 234 Capital Improvement Funds Appropriation 239 Budget Summary Capital Improvement Funds - 2020 240 2021-2024 Capital Improvement Plan 241 Capital Improvement 2019 Sources and Uses 243 Capital Improvement Reserve Fund 244 -3- 1 September 10, 2019 The Honorable Mayor and Members of the City Council City of Richfield Subject: Budget Message for the 2020 Fund Budgets and the 2019 Revised Fund Budgets Council Members: In accordance with the Charter of the City of Richfield, submitted for your consideration are the recommended budgets, including a balanced General Fund budget, for the City of Richfield for the period January 1, 2020 to December 31, 2020 and for the remainder of the calendar year 2019. A City Council work session was held on August 27, 2019 to review the proposed and revised budgets. Pursuant to State law, the City Council must certify the new budget and the revenue required to be raised by ad valorem tax levy to the County Auditor. The deadline for the certification is December 30, 2019. A proposed 2020 tax levy must be submitted to the County Auditor on or before September 30, 2019. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to the September 30, 2019 proposed levy certification deadline. No increases in the tax levy are permissible after that date, only reductions. The resolution required to certify the 2020 Adopted Budget and tax levy, as well as the 2019 Revised Budget is presented within the final adopted budget document completed in December. The Budget Document includes the General Fund, Special Revenue Funds, Internal Service Funds, Enterprise Funds, Debt Service Funds and Capital Improvement Projects. A diagram of the fund structure is included in the Introductory Section. Budgets for the General Fund and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and for the Debt Service Funds by bond indentures. An administrative organizational chart, which summarizes all departments and divisions in the City, is included in the Introductory Section. This chart indicates the divisions for which each department is responsible. The 2020 Adopted Budget includes total appropriations from all funds of $82,253,070, including all inter -fund transfers. M! OVERVIEW PROSPECTIVE Richfield is experiencing a renaissance: the redevelopment boom and strong housing market continued into 2019 and does not appear to be slowing down for 2020. The City has approved $277 million in redevelopment projects in the last couple years and has been named one of the hottest housing markets. The City also continues to increase its population which is projected to be 35,700 by 2020. The robust local economy has strengthened and diversified the City's tax base, which is a key City goal. The City has a number of strategic programs to ensure that the economic boom extends to all of our residents. The City has also worked to strengthen its financial condition by relying less on state aid programs, specifically Local Government Aid (LGA), to fund operations. LGA only funds account for only 5.7% of General Fund revenue today as compared to 24% in 2001. Over the same period, the City has also made significant investments in infrastructure, both to rehabilitate aging capital and to improve our assets to better deliver services today and tomorrow. The City continues to value our most important asset: our residents. We celebrate our growing diversity and are working to engage better with all of our communities. And, Richfield is determined to sustain its commitment to provide superior services to our community on a cost efficient basis. The future is bright, but not without challenges. Managing the redevelopment boom, engaging effectively with a growing and changing population, and providing additional programs has led to an increase in demand for City services. The investment in infrastructure is also a significant fiscal pressure. The 2020 City of Richfield budget and tax levy, as proposed, is expected to increase by 4.90%. The increase can be split into two primary components: the first component is the base tax levy, which includes funding for general fund operations, where the majority of city services are provided, the EDA levy, and the levy for equipment replacement purchases. The second component is the special levies, which comprise the debt service and tax abatement levies. The increase projected for 2020 over 2019 can be directly traced to pressure on the General Fund budget and the debt service levy required as a result of the issuance of the General Obligation Bonds, Series 2019A. These bonds were issued to fund the reconstruction of 66tn Street and Lyndale Avenue. Strategic Development Presently, the city has a number of redevelopment initiatives underway. The most active redevelopment areas are: • The Lakes at Lyndale Area - This area is considered the City's "downtown" and has experienced significant redevelopment and investment over the past 20 years. This work continued in 2019. o Work is well underway on two new housing developments at the former Lyndale Garden Center site. The Henley will front on Lyndale Avenue and is made up of 66 apartments and 8 rental townhomes. Lakeside at Lyndale Gardens is comprised of 30 new luxury condominiums fronting on Richfield Lake. Both projects are expected to be complete in 2020. • 66th & Nicollet Area — A small area plan for this area was completed as part of the decennial update of the City's Comprehensive Plan. The plan calls for a mix of uses, -5- significantly improved connectivity, placemaking/outdoor plaza spaces, street -oriented architecture and more. o Brixmor, the property owner for the HUB shopping center, participated in this planning process and continues to explore options for redevelopment of the site. o Partnership Academy Charter School completed construction of a new K-8 school at 6500 Nicollet Avenue (formerly Bremer Bank) and will open and be fully operational in time for the 2019-2020 school year. • Cedar Point Development Area — The east side of Richfield has also seen its first significant development since the recession. Investment in existing and construction of new commercial space in this area continued through 2019. New housing in the area immediately west of the Cedar Point Commons development is also finally scheduled to begin. o Primrose School (daycare) was completed and is now open. This represents the final piece of the Cedar Point Commons commercial development. o A Development Agreement and final development plans for the construction of 218 market -rate apartments and 72 for -sale affordable townhomes directly across from Target and Home Depot have been approved. Construction is expected to begin in late summer/fall 2019. • The Cedar Avenue Redevelopment Area (CARA) — This is the portion of the legislatively defined airport noise impact redevelopment area that lies south of 66th Street. o Interior remodeling of the three existing apartment buildings along Cedar Avenue is now complete. New roofs, sidewalks, stairs, railings, and landscaping will be installed in late summer 2019 to complete this portion of the project. o Construction of The Chamberlain apartment project, which includes 283 new apartments and the rehabilitation of 33 existing units, has continued this year. Building A is actively leasing, with a move -in date of September 1 for the first tenants. o Building B, Richfield Parkway, and the Three Rivers Trail will be complete by the end of October and Building C is expected to finish up in early winter of 2019. • The 494 Corridor Area o The new Morrie's Jaguar - Land Rover dealership is under construction at 1550 78th Street East (current Adler Graduate School). Construction, including a rooftop solar array, is expected to finish up by early 2020. o A Development Agreement to sell the former City Garage South site (7600 Pillsbury) for the construction of 55 workforce apartment units was approved. • The Penn Corridor (Penn Avenue from Crosstown Hwy. 62 to 68th Street) - This area is considered Richfield's "Main Street" and, as such, plans are underway to revitalize the area through improved public amenities, private improvements and selective redevelopment of underutilized properties. o In 2017, the City secured grant funding from Hennepin County for a fagade improvement program in this area. Promotional materials have been distributed on three different occasions to businesses in the area and thus far three grants have been awarded. Funding for approximately four additional grants remains. o In 2019, the City successfully applied for $50,000 from Hennepin County's Community Works Corridor Planning fund. This money will be used to study safe and effective multimodal connections that will stimulate economic development along Penn Avenue. This work is expected to begin in late 2019 and continue into 2020. -6- o Construction of the Novo apartment project (66th Street and Queen Avenue) is expected to begin before the end of 2019. This project includes 183 market -rate apartments, the closure of Queen Avenue between 65 '/2 Street and 66th Street, and construction of a new section of Russell Avenue between 65 '/2 Street and 66th Street. o Staff continues to see increased development interest in the area. Lund's is expected to come forward with plans to add multi -family housing to their site in fall of 2019 and the City is currently exploring redevelopment options for the former Bumper -to -Bumper property at 6501 Penn Avenue. To complement the commercial redevelopment, the City has a number of programs in place to reinvest in the housing stock of the city, including: • Apartment Remodeling Program — This program offers no -interest, deferred loans to make improvements to apartment buildings and is funded through the Economic Development Authority. Priority is given to buildings with affordable rents, and owners provide matching funds. • Richfield Rediscovered Program - This program provides for the replacement of small, substandard homes within residential neighborhoods and is funded primarily through the Housing & Redevelopment Fund. One hundred and forty-three homes have been constructed in conjunction with this program since it began in 1991. The program is designed to provide larger, higher -value, single-family housing options for households. When possible, the HRA acquires substandard homes for this program and clears the properties in order to sell the lots for new construction. Four homes will be completed in 2019. • Transformation Loan Program — This is an incentive loan program for remodeling homes to encourage investment in neighborhoods, encourage households to stay in the City, and increase home values. The Transformation Home Loan is a zero -interest, deferred payment loan that covers 15% of the overall project cost, for projects valued at $50,000 or greater. Four loans have been issued in 2019, leveraging over a million dollars in improvements. • New Home Program — The New Home Program was established to address deteriorated, substandard structures and to provide home ownership opportunities for low to moderate - income households. Non-profit builders and developers like Twin Cities Habitat for Humanity and West Hennepin Affordable Housing Land Trust have rehabilitated or built 52 new homes since 1993. • Community Development Block Grant Program (CDBG) — The HRA receives federal CDBG funds through Hennepin County, annually, to assist low-income home owners to make necessary repairs to their houses and to facilitate the construction of new affordable housing in the City. Hennepin County administers the home -improvement Richfield Deferred Loan Program and typically assists 6 to 10 households annually. Program funding has also been used to acquire substandard houses for the future construction of new, affordable homes and to purchase and rehabilitate homes under the New Home Program. Funds were approved for a Down Payment Assistance Program to help Richfield renters get homeownership ready and buy their first home in Richfield. Five loans are anticipated in 2019. • Remodeling Advising - The HRA offers both free Remodeling Advising services as well as low-cost Architectural Advising to help homeowners make wise decisions when planning home improvements. Both programs are highly utilized. -7- • Community Fix -Up Fund Interest Rate Write -Down Program — In 2012, the HRA established this interest rate write -down program for home improvement loans for qualified households. This program targets households with incomes that fall between 80% and 115% of the area median income and currently offers an interest rate of just three percent. Funds are supplemented with an Impact Fund grant from Minnesota Housing. • The Home Energy Squad Enhanced Program — This program began in 2013 to provide enhanced energy audit visits to homeowners at a reduced price of $50, which can be waived for low-income homeowners. Since the program began in March 2013, over 600 visits have been conducted throughout the city, helping owners reduce energy usage and save money. State Aid Over the last several years, the City of Richfield, under City Council direction, has been following a policy to minimize its reliance on Local Government Aid (LGA). The State's past budget issues have had a negative, trickle -down effect on cities and, therefore, the City feels it is in its best interest to not rely on 100% of its LGA funding for operations, even though the State's financial outlook has improved and stabilized in recent years. The 2019 session of the Minnesota Legislature opened with a new democratic governor, democratic control of the House of Representatives, and republican control of the Senate. The session, which marked the first year of the State's fiscal biennium, was set to focus primarily on setting the budget for the next two years. As with any legislative session there are always a mix of successes and failures. Some of the 2019 session successes were an increase in Local Government Aid (LGA) funding back to levels last seen in 2002, $40 million in broadband grant funding and money to help cities with water/wastewater infrastructure. However, some of the disappointments was the failure of the legislature to pass a much needed transportation bill, there was no bill to simplify the process for construction sales tax exemption and the process for local sales tax authorization was made more cumbersome. The most significant positive impact for the City of Richfield will be the increase in LGA. It is estimated that the City will see an increase of $117,710 in 2020 from the 2019 level. At the present time, the State is projecting a budget surplus of $1.052 billion for the 2020-2021 biennium. Despite this positive news from the State, the City still plans to move forward with the policy of not relying on all of our LGA for operations. However, due to infrastructure projects which required the issuance of tax supported debt, the formation of the Richfield Economic Development Authority (EDA), and increases in General Fund budgeted expenditures, there has been increased pressure on the City's tax levy. Consequently, to mitigate the pressure on the levy, the City has slowly increased its budgeted level of LGA, with an increase of $600,000 in 2018, $50,000 in 2019, to a proposed increase of $250,000 in 2020. The City realizes it has a responsibility to provide basic services at a reasonable cost, and by increasing the level of budgeted LGA this will help mitigate tax levy increases. The City still has sufficient LGA reserves to mitigate volatility in state funding in the short-term. Richfield remains one of the top ten beneficiaries of the metropolitan Fiscal Disparities Program. Fiscal Disparities is a mechanism for tax base sharing for new commercial/industrial property development. Under the program, a certain percentage of new commercial/industrial growth in the metropolitan area is contributed to a pool. The tax base growth is then redistributed to cities in the seven county metropolitan area based on a needs formula. In the -s- past, there has been discussion at the Legislature about changing the Fiscal Disparities Program, but so far it has only been discussion. The City will monitor and respond to any future attempts to change the program. Infrastructure The City will continue to reinvest in its infrastructure and schedule major projects to minimize the debt impacts on property taxes. In 2015, the City made the decision to invest in a six year program to mill and overlay all city streets. This process will extend the life of city streets at a fraction of the cost of completely reconstructing a street. It is planned that up to 85 miles of residential roads will be milled and overlaid in addition to the repair of catch basins, manholes and the replacement of curb and gutter. The first year of the program was 2015; 2020 will be the sixth and final year of the program. The overall program is estimated to cost $19,500,000. The project will be funded through the issuance of street reconstruction bonds, with gas and electric franchise fees providing the debt service on the bonds. At the completion of the six year project, the gas and electric franchise fees will continue to be used to fund the next phase of planned City street maintenance, the sealcoating of the streets to ensure that they remain viable. The City will also continue to reinvest in its rolling stock, technology and City facilities through dedicated tax levies, as needed. Second, there are several transportation and right-of-way projects that will continue to be addressed in 2019 and 2020 and several years out. They are as follows: • 66th Street Reconstruction. This project will consist of the reconstruction of 66th Street from Xerxes Avenue east to 16th Avenue. It will include the replacement of city utilities, undergrounding of parallel overhead utility lines, and improved bicycle and pedestrian accommodations. This is a County road project; however, the City will share in the costs, including 10% of road construction, 50% of storm sewer, 100% of water/sewer replacement and any additional streetscape elements not cost -shared by the County. The total estimated cost is $61,292,000. Construction began in 2017 and will continue through 2019 into early 2020. • 77th Street Underpass. This project will extend 77th Street under Trunk Highway 77, connecting to the 24th Avenue Interchange at 1-494. This project will provide regional access to the Minneapolis -St. Paul International Airport and to the Mall of America. The project also completes the last link in the local ring route that, together with the additional access, is needed before expansion on 1-494. The total estimated cost is $30,500,000. Design of the project began in 2015, with construction estimated to begin in 2020. • Lyndale Avenue Reconstruction. This project will reconstruct Lyndale Avenue between 67th Street and 76th Street and will include the replacement of city utilities. The total estimated cost is $10,000,000, with construction to begin in 2019 and completion in early 2020. Personnel Richfield significantly trimmed staff in response to LGA cuts in 2010 and has maintained a lean staff since. The City continues to look at reallocating human resource costs to provide the most cost effective service delivery model wherever such an opportunity may present itself. However, service demand has steadily increased in recent years due primarily to the development boom, increase in infrastructure projects, technology support and increased engagement. There are several staff additions and changes in 2019 and planned for 2020. The 2019 changes that impact the General Fund include; the City Clerk division will add one full time position, and begin a transition from utilizing intermittent staffing to permanent part-time -9- staffing. The City Manager division will add a Senior Office Assistant position to be shared with the Fire department, with 60% to City Manager and 40% to the Fire department. The Engineering division will add a new Project Engineer position and eliminate two Project Civil Engineer positions. Finally, the Park Maintenance division will add a new parks maintenance Public Works worker position. For 2020, the Fire department will add a Battalion Chief position, the engineering division will add an Assistant City Engineer position and the Information Technologies fund will add a Help Desk Technician position. Personnel costs also increased due to a 3% cost of living adjustment for all employees, step increases for eligible employees and a 10% increase in health insurance. 2020 Budget Goals The 2020 budget includes funding and staffing to advance City Council goals: • Investing in infrastructure to best serve today's and tomorrow's residents, businesses and visitors; • Attracting and retaining development that creates prosperity for all and is consistent with the City's "Urban Hometown" character; • Ensuring that the City's services are accessible to people of all races, ethnicities, incomes and abilities; • Providing a full range of quality housing options through our policies and programs; • Utilizing a wide variety of communication and engagement tools to build a stronger relationship with residents, businesses and visitors; and • Promoting and valuing core services and its contributions to making Richfield an exceptional place to live, learn, work and play. Just as importantly, the budget advances these goals in a fiscally responsible manner by balancing the need to invest in achieving these goals with the need to keep property tax increases reasonable. GENERALFUND The General Fund serves as the chief operating fund of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. Revenues The General Fund, which provides for most of the traditional services that residents have come to expect, receives the majority of its funding from property taxes. Other sources of funding, to a lesser degree, come from intergovernmental revenue, charges for services, licenses and permits, and transfers in from other funds. The 2020 Proposed budget was prepared with the strategy that the primary funding source for the General Fund operations now, and in the future, will come from property taxes. The impact of limiting dependence on state aids can create a funding gap in General Fund revenues. The challenge is to fill this gap. Since cities are limited in the type and extent of revenues that they can generate, the outcome is an increase in property taxes. The result of this funding choice has been a continued and dramatic shift in General Fund revenues. For example, in 2001, LGA accounted for 24% of General Fund revenues. In 2020, it will account for 5.7%. Conversely, property taxes have grown from 40% of revenues in 2001 to 68% in 2020. The 2020 budgeted General Fund revenues of $25,438,820 represents a 4.99% increase from the 2019 Adopted budget. The sources of General Fund revenues, with the exception of property taxes and intergovernmental revenues have remained relatively comparable to the prior years' budget levels. However, revenues from transfers -in from other funds continue to be -10- a major source. In 2020, the General Fund will receive: $150,000 from the Communications Fund; $318,210 from the Liquor Operations fund to offset administrative costs related to the liquor operation; $435,000 from a closed bond fund; and $700,000 of prior years' LGA set aside reserves. A comparison of actual General Fund revenues from 2019 to 2020 is shown in Figures 1 and 2 below. 10% 10% 2019 GENERAL FUND REVENUES 6% Figure 1 2020 GENERAL FUND REVENUES 68% 68% ■ Taxes ■License & Permit ❑ Intergov't Revenue ❑Charge for Service ■ Fines & Forfeit ❑Misc. Revenue/Trans. ■ Taxes ■License & Permit ❑ Intergov't Revenue ❑Charge for Service ■ Fines & Forfeit ❑Misc. Revenue/Trans. Figure 2 Expenditures The City's General Fund is used to account for most of the services that the City provides to its residents, such as police, fire, public works, parks, recreation and general administration. Richfield's General Fund is organized into eight major departments; Legislative/Executive, Administrative Services, Finance, Public Safety, Fire, Community Development, Public Works, and Recreation Services. Each department, in turn, encompasses divisions that provide an array of services, either directed to the public or in support of other City services. A General Fund organizational chart, which includes all departments and divisions, is shown in the Introductory Section of this document. City policy requires that all budgeted expenditures under $1,000 must be approved by a division manager and department director. Any expenditure over $1,000 must be approved by the division manager, department director, the Finance Director and City Manager. Any expenditure over $175,000 must be approved by the City Council. MIE 2016 GENERAL FUND EXPENDITURES ❑Legal/Exec. ■Admin. Svcs. 9% 1% 4% ° 6 /° ❑ Public Safety 18% ■ Fire 1 7 ■Comm. Dev. 6% 38% ❑ Public Works ■ Recreation 18% ■ Transfers Figure 3 2020 GENERAL FUND EXPENDITURES ❑Legal/Exec 8% 1% 4% 4% 3% ■Admin Svcs ■ Finance 17% 39/° ° ❑Public Safety ■ Fire 6% ■Comm. Dev. ❑ Public Works ■ Recreation ■ Transfers 18% Figure 4 It is logical that over a period of years, the type and mix of City services would likely change as the community changes. However, in a mature community such as Richfield, it is also important that a consistent balance of services be maintained, even in the face of budgetary constraints. Richfield's mix of services, as seen through an expenditure analysis of the seven major departments, reflects a stable, consistent approach. The 2020 expenditures are consistent with the expenditures from 2016 (Figures 3 and 4). In the 2020 Budget, 57% of the total expenditures are designated for Public Safety and Fire Department operations, while an additional 17% is designated for Public Works operations. As a comparison, the 2016 actual expenditures reflected 57% and 18% of total expenditures for the Public Safety, Fire and Public Works Departments. While there have been adjustments, the total balance of services provided by the major departments remains relatively constant. City staff made every effort to limit 2020 expenditure increases for all departments of the General Fund in an attempt to maintain the current level of City services and in response to the internal and external constraints placed on the City as mentioned previously. The most significant issues for the 2019 Revised and 2020 Adopted General Fund Department Budgets are summarized in the following section. sip 2019 REVISED AND 2020 ADOPTED DEPARTMENT BUDGETS Legislative/Executive The 2019 Revised budget reflects a 6.74% decrease due to a decrease in labor costs within the City Manager division. The 2020 Proposed budget reflects a .13% decrease due to decreased personnel costs in the Mayor/Council division. Administrative Services The Administrative Services Department budget for 2020 reflects an increase of 28.84%. The increase is the result of 100% of the Administrative Services department director's time being reallocated to the Administrative division and the City Clerk division adding one full time position and transitioning from intermittent staffing to permanent part-time staffing. Finanra The Finance Department reflects a 2.33% increase for 2019. The increase can be traced to an increase in personnel costs and the contract with Hennepin County for property assessing services. Public Safety The Public Safety Department reflects a 3.48% increase in the 2020 Proposed budget as compared to the 2019 Adopted budget. The increase is a result of personnel cost increases due to a large number of collective bargaining step increases and an increase in the City's share of public health inspection costs. Fire The Fire Department budget for 2020 reflects a 9.2% increase over the 2019 Adopted budget. The increase is a result of increased personnel costs as firefighters work their way through step increases and become eligible for longevity payments and the addition of the Battalion Chief position. Community Development The Community Development Department 2019 Proposed budget reflects a 3.49% increase over the 2019 Adopted budget. The increase can be attributed to salary and benefit costs. Public Works The 2020 Public Works Department budget reflects a 2.69% increase from the 2019 Adopted budget. The increase is the result of increases in personnel and operational costs. Recreation Services The Recreation Services Department 2020 Proposed budget indicates a 3.14% increase over the 2019 Adopted budget. The increase is a result of an increase in personnel and operating costs. SPECIAL REVENUE FUNDS Liquor Contribution Fund The Liquor Contribution Fund receives profits from the municipal off -sale liquor operations. Expenditures from the fund are restricted in use to financing capital improvements that would otherwise be financed by a General Obligation bond issue. In 2020, $450,000 of project costs are planned, including: • Park Play Equipment Replacement at three parks • Major park maintenance. -13- Transfers of $450,000 will be made from Liquor Operations in 2020 to fund these projects Tourism Administration Fund This fund accounts for the collection of lodging tax revenues and the pass -through of these funds to the Richfield Tourism Promotion Board. The Tourism Promotion Board promotes the city as a tourist/visitor destination and promotes civic activities to enhance the city's image. Communications Fund The Communications Fund is maintained to account for the quarterly cable franchise fees received, cable television and community communication activities. The fund provides 100% of the Communications & Engagement Manager position, which is responsible for the City's website, social media, cable bulletin board, press releases and other public communications and the Communications Specialist and Video Production Assistant positions. Election Fund The Election Fund was established to isolate the large fluctuation over time in election costs from year to year. The fund provides voter registration services, voter information services and election administration. Funding for the costs of elections services is derived from rental revenues from cellular telephone carriers who rent space for their antennas on City infrastructure. Drug/Felony Forfeiture Fund The Drug/Felony Forfeitures Fund receives its revenues as a result of cash and property seized related to drug and/or felony criminal activity. The revenues received are used to purchase equipment for public safety purposes and to provide funding for training. Public Safety Compliance Fund Revenue from this fund is derived from fines levied against businesses that fail alcohol and tobacco compliance checks. The monies received from the fines are then used to fund the costs involved in performing compliance checks. This fund will also account for the Community Emergency Response Team (CERT) and Justice Assistance Grants (JAG). Recreation Services Contribution Fund The Recreation Services Contributions Fund serves as a method to account for donations received that are intended to benefit activities of the Recreation Services Department. Uses of the donations include staffing costs, the purchase of supplies and equipment and to help fund parks -related construction projects. Nature Center Contribution Fund The Nature Center Contribution Fund serves as a method to account for donations received that are intended to benefit Wood Lake Nature Center. The source of the donations comes from fundraising activities of the Friends of Wood Lake (FOWL). The donations are used to supplement the Wood Lake Nature Center operating budget and for the purchase of supplies, equipment and to help fund nature center construction projects. Public Health Grants Fund This fund accounts for the receipt of federal grant funds that are to be used by the City to assess and enhance the capacity of local public health departments to respond to bio- terrorism, infectious diseases and other threats to public health. MICE Wood Lake Half Marathon Fund This fund was established to provide an alternative revenue source to fund the Wood Lake Nature Center's environmental education curriculum for Richfield Public School students in kindergarten through eighth grade. Funding for the program is derived from proceeds from the annual Urban Wildland Half Marathon and 5K race. Utility Franchise Fees Fund This fund accounts for gas and electric franchise fees collected from the public utilities. The majority of fees collected will be directed to the mill and overlay program and toward the debt service for the bonds issued to help fund the program. This may cause a decrease in the fund balance. In addition, a smaller portion of the fees collected will continue to fund the annual tree planting program, the Dutch Elm disease tree program, and the Emerald Ash Borer disease program. Ice Arena Fund The Ice Arena maintains two sheets of ice and is the home to a Junior A Tier II hockey team, the Minnesota Magicians. The operation provides skating lessons, open skating, and sponsors an annual ice show. It also rents ice to local high schools for practices and games and to youth associations for clinics, practices, games and tournaments. Swimming Pool Fund This fund accounts for all activities related to the swimming pool operation. It strives to provide users with an outstanding outdoor recreational swimming experience for all ages and groups. For 2020, the feasibility of opening the zero depth pool on Memorial Day and Labor Day weekends will be explored along with adding a splash pad to the facility. Special Facilities Fund This fund maintains the City's mini -golf course which is run by Wheel Fun Rentals, Inc. through a concession agreement with the City. In late 2018 and into 2019 Wheel Fun Rentals invested approximately $240,000 into a new mini -golf course and walkways. In addition, the operation provides a picnic shelter to be used by the Richfield Farmers Market and park users. ENTERPRISE FUNDS Liquor Stores Fund The City of Richfield operates four municipal liquor stores. Total sales for the four liquor stores for 2019 are projected to be $12.5 million and grow to $13.4 million in 2020, a 7% increase. Operating expenses budgeted for 2020 for the four stores total $2.39 million. This reflects an increase from the 2019 adopted operating expenses. For the four stores, the projected profit before transfers for 2020 is expected to be $998,640 with budgeted transfers to the Special Revenue Fund of $450,000 and $318,210 to the General Fund for administrative costs, police duty and payments in lieu of taxes. The net effect of the 2020 budget is an estimated increase in retained earnings of $210,780 or 4.82% increase from 2019 revised budget, primarily due to projected increase in sales. Water and Wastewater Utility Fund The Water and Wastewater Utility Fund accounts for the operation and maintenance of the City's water plant and the maintenance of 120 miles of sanitary sewer lines. Operating revenues for the Water Fund for 2020 Proposed reflect an increase from 2019 Adopted levels. The increase can be attributed to a planned increase in water rates as result of a rate study conducted in 2017. The Water Fund continues to reinvest in its infrastructure in 2019 and 2020. Included in the current budgets are capital improvements totaling sM $2,090,000 in 2019 and $1,500,000 in 2020. The improvements relate to the city wide water meter upgrade, lining of the water main under 1-35W, a new sludge mixer and the rehab of the filter press. The Wastewater Utility Fund provides collection of sanitary wastewater from approximately 11,500 accounts in the city. The 2020 Sanitary Wastewater Operating Budget is approximately $4.5 million. The most significant expense is the wastewater treatment charges paid to Metropolitan Council Environmental Services (MCES). MCES charges are expected to decrease from the budgeted 2019 level of $2,681,950 to $2,550,770, a 4.89% decrease. Water rates for 2020 will increase based on the rate study performed in 2017. Accordingly, the rates will increase across the three tier levels by 5%. Tier 1 will increase 20 cents per thousand gallons, Tier 2 will increase 23 cents per thousand gallons and Tier 3 will increase 28 cents per thousand gallons. In addition, wastewater rates will increase by 5% or 28 cents per thousand gallons. Storm Water Utility Fund The Storm Water Utility Fund provides for the disposal of storm water for the city and is funded through user fees. The fund provides for routine maintenance and major capital improvements to the system. The Storm Water Utility was part of the 2017 rate study and as such rates for 2020 will increase by 7% or $1.33 per quarter over 2019 levels. INTERNAL SERVICE FUNDS Central Garage Fund The Central Garage Fund accounts for the acquisition, maintenance, and repair of all motor vehicles and motor -driven equipment used by the City. It is funded by internal operating user fees charged to other City departments and funds. Fees for 2020 will increase 3.13% over 2019 levels. The funding for the replacement of equipment that the operation maintains will be accomplished through a general tax levy in the amount of $685,000, an increase of $15,000 from 2019. The increase is in response to increased costs incurred in the purchase of rolling stock and equipment. In addition, it is projected that for 2019 and 2020 the fund may not cash flow, therefore, operating transfers are planned to mitigate the decrease in cash of the operation until such a time that rates charged to user departments and the tax levy amounts can be increased. The fund is scheduled to make purchases in 2019 of $974,730 and $880,000 in 2020. The significant purchases planned for 2020 are: • Dump Truck ($220,000); • Two — Sidewalk Plows ($260,000); • Two — 1 Ton Dump & Plow Trucks ($100,000); and • Two Interceptor Squads ($85,000) Information Technologies Fund The Information Technologies (IT) Fund's primary purpose is to provide computer hardware and software support, programming and training to City staff. In response to increased support needs, security requirements, and increased technology demands, the fund has budgeted for one additional staff position in 2020. As with the Central Garage Fund, the purchase and replacement of equipment in the IT Fund has been funded through a general tax levy. The scheduled purchase of technology equipment for 2019 and 2020 is estimated to be $135,000 each year. The IT Fund also provides office supplies and copying services for all City departments. MOO Self Insurance Fund The Self Insurance Fund accounts for all of the City's costs for claims related to Workers' Compensation, unemployment insurance benefits, property insurance, flexible benefits, dental insurance, and all other City self insurance costs. For 2020, the fund has increased property/casualty rates, however, due to a reduction in claims, workers compensation rates were reduced. Finally, operating results of the fund are dependent on the number and scope of claims paid during any given year and consequently, results can fluctuate from year to year. Building Services Fund The Building Services Fund is responsible for the maintenance and upkeep of the Richfield Municipal Center and Fire Station 2. 2020 will be the ninth year of operation for the municipal center. After this amount of time the operating budget is coming into focus. User fees will still be adjusted on an annual basis to keep pace with operating costs and to provide funding for replacement costs of fixtures within the building. DEBT SERVICE FUND The Debt Service Fund is used to record financial operations from special assessments, tax increment, and, as necessary, property taxes to meet debt service payments and outstanding bond issues. General Obligation improvement bonds are payable through 2040, with outstanding principal at the beginning of 2020 of $48,460,000. The fund balance in the fund, along with debt service tax levies, special assessment collections and interest earnings are pledged to service the debt. The General Obligation redevelopment bonds are retired from tax increment collected from the project area. Redevelopment bond principal of $4,220,000 is payable through 2025. OPERATING CAPITAL EXPENDITURES Capital expenditures represent all tangible or intangible assets that are used in operations, that have initial useful lives extending beyond a single reporting period and whose dollar value is greater than $5,000. In the 2019 Revised Budget the City has budgeted for $1,297,840 operating capital expenditures, while there are no operating capital expenditures currently budgeted for 2020. The capital expenditures budgeted for 2019 are within the Special Revenue and Proprietary Funds. These budgeted items are not to be confused with the projects that are part of the Capital Improvement Budget and Capital Improvement Program. CAPITAL IMPROVEMENTS BUDGET The Capital Improvement Budget recommends $12,845,000 of expenditures in 2020. There are four projects that comprise the majority of the budgeted amount. The first project is the Ice Arena Refrigeration project. The estimated cost for 2020 is $3,680,000. The second project is the final funding for the 66t" Street project and this amount is $1,850,000. The third project is the final year of the mill & overlay project. The estimated cost is $3,250,000. The fourth project is year two of the city wide water meter replacement project. Total cost for the three year project is estimated to be $4,000,000. The projects are to be funded by general obligation bonds, State Bond funds, State Aid monies, county funds, franchise fees, and internal funding sources. The City will also continue with improvements for various City parks in 2020 with funding of $450,000 from the Liquor Contribution Special Revenue Fund. -17- CONCLUSION The City of Richfield continues to be a sound financial operation. The City has a bright future and can be proud of its accomplishments. It has taken on the challenge to redevelop and reinvest in order to continue to be a vibrant, sustaining community. For the 2020 Budget year, the City has presented a balanced General Fund Budget, which has increased 4.99% from the 2019 Adopted budget. This budget will allow the City to continue to provide the excellent core services required, expected and needed by its residents and businesses, advance City Council goals and make investments to position the City well for the future. In addition to our residents, the City's most valuable assets are our employees who make up a large portion of the budget. Whether an employee is just starting or has worked at the City for many years, we all take pride in providing quality service to the residents of Richfield. The information presented in this budget document provides the background and funding plan to address the opportunities and challenges facing the City in 2020, and beyond. I would like to take this opportunity to thank Finance Director Chris Regis and all City departments for their input and help in preparing the 2020 budget. Respectfully submitted, t-4-P-2( Katie Rodriguez City Manager -18- CITY OFFICIALS MAYOR - MARIA REGAN GONZALEZ COUNCIL MEMBER — MARY SUPPLE COUNCIL MEMBER — SIMON TRAUTMANN COUNCIL MEMBER — EDWINA GARCIA COUNCIL MEMBER — BEN WHALEN Term of Office 4 Years 4 Years 4 Years 4 Years 4 Years ADMINISTRATIVE STAFF KATIE RODRIGUEZ — CITY MANAGER CHRIS REGIS - FINANCE DIRECTOR ELIZABETH VANHOOSE - CITY CLERK Term Expires December 31, 2022 December 31, 2022 December 31, 2020 December 31, 2020 December 31, 2020 sM Administrative City of Richfield Administrative Organization Chart Other Agencies Support Citizens of Richfield City Manager I City Attorney I Recreation Community Liquor Services Development r i Recreation Human vouce varK ana Resources Assessing O erations Enaineerina Recreation City Clerk/Election Emergency Street Wood Lake Deputy Re istrar Services Maintenance Nature Center Information Park Ice Technolo ies Maintenance Arena Self Insurance/ Water & Waste. Swimming Risk Management Utility Pool Communications Stormwater Special Fund Utility Facilities Buildinas 1 I & Eauioment viammng tx Zonina Penn Store Wines & Spirits -20- *General Fund CITY OF RICHFIELD - FUND STRUCTURE GOVERNMENTAL FUNDS Special Revenue Funds Liquor Contribution Tourism -F Administration Communications Fund Elections Drug/Felony Forfeiture Public Safety Compliance Recreation Services Contributions Nature Center Contributions Public Health Grants Wood Lake Half Marathon Franchise Fees Ice Arena Swimming Pool Special Facilities Debt Service Capital Funds Project Funds *Improvement Recreational Bonds Development Redevelopment I H *Right of Way Bonds Improvements Public I Facilities PROPRIETARY FUNDS Enterprise Funds *Municipal Liquor Water & Wastewater Utility Storm Sewer I Utility Internal Services Funds Central Garage & Equipment Information Technoloaies Self Insurance I Risk Manaaement Building Services Compensated I Absences The City's budget is prepared using a modified accrual basis of accounting for all governmental funds and an accrual basis of accounting for proprietary funds. 21 * Denotes Major Fund BUDGET SUMMARY -22- SUMMARY OF 2019 REVISED BUDGET ALL FUNDS FUND General Special Revenue Funds Liquor Contribution Tourism Administration Communications Elections Drug Felony/Forfeiture Public Safety Compliance Recreation Contributions Nature Center Contributions Public Health Grants Wood Lake Half Marathon Franchise Fees Ice Arena Swimming Pool Special Facilities Enterprise Funds Liquor Water & Sewer Utility** Storm Sewer Utility ** Internal Service Funds Central Garage Information Technologies Self Insurance Building Services Debt Service Funds ** G.O. Improvement Bonds G.O. Redevelopment Bonds Capital Improvement Funds Recreational Development Right -of -Way Improvements Public Facilities Fund Balance January 1, 2019 Revenues Fund Balance Expenditures December 31, 2019 $ 8,810,296 $ 24,211,600 $ 24,211,600 $ 8,810,296 136,873 950 - 137,823 55,646 10,500 10,130 56,016 2,035,076 392,000 300,570 2,126,506 1,267,878 361,000 160,300 1,468,578 185,839 61,200 41,630 205,409 139,630 65,790 49,840 155,580 38,328 30,200 21,000 47,528 53,961 94,100 91,100 56,961 104,510 53,050 48,330 109,230 25,636 69,500 63,800 31,336 2,208,703 1,852,000 2,039,480 2,021,223 (3,841,402) 1,237,170 1,026,470 (3,630,702) (952,039) 537,310 466,860 (881,589) 26,791 141,190 137,690 30,291 3,838,831 12,595,000 12,003,270 4,430,561 17,839,830 9,250,710 8,169,200 18,921,340 7,753,160 1,804,420 2,092,040 7,465,540 4,646,213 2,194,950 1,892,750 4,948,413 197,659 1,186,920 1,258,090 126,489 4,776,472 972,920 1,124,530 4,624,862 772,161 897,140 897,140 772,161 10,844,148 9,624,400 15,165,670 5,302,878 - 868,100 868,100 - 4,362,917 450,000 450,000 4,362,917 14,455,969 17,030,000 17,030,000 14,455,969 - 2,565,000 2,565,000 - TOTALS $ 79,783,086 $ 88,557,120 $ 92,184,590 $ 76,155,616 * In municipal accounting, all capital outlay acquired by the Enterprise and Internal Service Funds is recorded at cost. This cost is charged as depreciation expense over the estimated useful life of the asset. ** Bonds are not recorded as current expenditures, but rather as adjustments to the cash position. -23- SUMMARY OF 2020 BUDGET ALL FUNDS FUND General Special Revenue Funds Liquor Contribution Tourism Administration Communications Elections Drug Felony/Forfeiture Public Safety Compliance Recreation Contributions Nature Center Contributions Public Health Grants Wood Lake Half Marathon Franchise Fees Ice Arena Swimming Pool Special Facilities Enterprise Funds Liquor Water & Sewer Utility** Storm Sewer Utility ** Internal Service Funds Central Garage Information Technologies Self Insurance Building Services Debt Service Funds ** G.O. Improvement Bonds G.O. Redevelopment Bonds Capital Improvement Funds Recreational Development Right -of -Way Improvements Public Facilities Fund Balance January 1, 2020 Revenues Fund Balance Expenditures December 31, 2020 $ 8,810,296 $ 25,438,820 $ 25,438,820 $ 8,810,296 137,823 450,950 450,000 138,773 56,016 10,500 10,130 56,386 2,126,506 395,800 480,260 2,042,046 1,468,578 378,500 133,460 1,713,618 205,409 42,000 43,000 204,409 155,580 14,700 8,200 162,080 47,528 30,220 21,000 56,748 56,961 94,200 92,000 59,161 109,230 53,150 48,330 114,050 31,336 69,500 63,800 37,036 2,021,223 1,847,000 2,943,020 925,203 (3,630,702) 4,959,990 4,755,310 (3,426,022) (881,589) 563,150 481,490 (799,929) 30,291 40,400 47,970 22,721 4,430,561 13,476,810 13,194,070 4,713,301 18,921,340 9,571,700 8,354,280 20,138,760 7,465,540 1,917,130 2,286,100 7,096,570 4,948,413 2,248,010 1,830,100 5,366,323 126,489 1,223,900 1,453,700 (103,311) 4,624,862 968,000 1,136,880 4,455,982 772,161 924,180 923,810 772,531 5,302,878 4,330,130 4,338,060 5,294,948 - 874,280 874,280 - 4,362,917 4,130,000 4,130,000 4,362,917 14,455,969 5,630,000 5,630,000 14,455,969 - 3,085,000 3,085,000 - TOTALS $ 76,155,616 $ 82,768,020 $ 82,253,070 $ 76,670,566 * In municipal accounting, all capital outlay acquired by the Enterprise and Internal Service Funds is recorded at cost. This cost is charged as depreciation expense over the estimated useful life of the asset. ** Bonds are not recorded as current expenditures, but rather as adjustments to the cash position. IrzE 2018-2020 SUMMARY OF FINANCIAL SOURCES AND USES AND CHANGES IN FUND BALANCES General Fund Special Revenue Funds Enterprise Funds 2018 2019 2020 2018 2019 2020 2018 2019 2020 Actual Revised Budget Actual Revised Budget Actual Revised Budget FINANCIAL SOURCES Property Taxes $16,003,424 $16,549,150 $17,311,530 Licenses and Permits 1,385,288 1,701,500 1,106,600 Intergovernmental Revenues 2,383,163 2,447,540 2,649,000 112,378 107,670 85,900 24,605 Charges for Services 2,246,618 2,551,370 2,337,800 3,677,911 3,763,680 3,815,120 21,978,680 23,261,320 24,569,800 Special Assessments - Fines and Forfeitures 310,713 310,000 325,000 53,093 51,200 40,000 Miscellaneous Revenues 153,773 96,800 105,680 827,556 773,410 659,040 409,635 388,810 395,840 Other Financing Sources 299,920 555,240 1,603,210 365,000 210,000 4,350,000 3,027,149 Total Financial Sources $22,782,899 $24,211,600 $25,438,820 $5,035,938 $4,905,960 $8,950,060 $25,440,069 $23,650,130 $24,965,640 FINANCIAL USES Personnel Services $15,783,443 $16,815,530 $17,811,150 $1,110,648 $1,105,140 $1,193,080 $ 3,909,090 $ 4,058,360 $ 4,280,970 Other Services & Charges 6,706,174 7,186,070 7,407,670 1,072,685 1,270,640 1,256,870 6,011,132 6,046,780 6,206,780 Depreciation - 2,011,687 2,157,220 2,130,500 Capital Outlay Improvements 42,313 309,992 136,940 3,680,000 Cost of Goods Sold - - 8,645,844 9,420,630 10,080,090 Other Financing Uses 195,000 210,000 220,000 423,340 1,944,480 3,448,020 299,920 308,930 768,210 Debt Service Principal - Interest 18,573 256,796 272,590 367,900 Total Financial Uses $22,726,930 $24,211,600 $25,438,820 $2,935,238 $4,457,200 $9,577,970 $21,134,469 $22,264,510 $23,834,450 Net increase (decrease) in fund balance $ 55,969 $ $2,100,700 $ 448,760 $ (627,910) $ 4,305,600 $ 1,385,620 $ 1,131,190 Change in Accounting Principle - - (5,313) - - Prior Period Adjustment - - (318,362) - - FUND BALANCES: Fund Balance - Beginning $ 8,754,327 $ 8,810,296 $ 8,810,296 $ (615,270) $1,485,430 $1,934,190 $ 25,126,221 $ 29,431,821 $ 30,817,441 Fund Balance - Ending $ 8,810,296 $ 8,810,296 $ 8,810,296 $1,485,430 $1,934,190 $1,306,280 $ 29,431,821 $ 30,817,441 $ 31,948,631 -25- Internal Service Funds Debt Service Funds Capital Improvement Funds Totals 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Actual Revised Budget Actual Revised Budget Actual Revised Budget Actual Revised Budget $ 2,884,805 $ 3,170,340 $ 3,478,690 $ 1,152,799 $ 795,000 $ 815,000 $20,041,028 $ 20,514,490 $21,605,220 1,385,288 1,701,500 1,106,600 - 3,630,323 2,480,000 5,790,000 6,150,469 5,035,210 8,524,900 3,860,861 3,982,450 4,071,990 31,764,070 33,558,820 34,794,710 56,015 56,000 55,000 146,293 202,308 56,000 55,000 363,806 361,200 365,000 382,658 181,480 187,100 220,761 45,000 45,000 434,319 5,070,000 6,240,000 2,428,702 6,555,500 7,632,660 855,000 1,088,000 1,105,000 11,148,580 7,221,160 1,625,720 10,273,964 11,700,000 25,969,613 20,774,400 8,683,930 $ 5,098,519 $ 5,251,930 $ 5,364,090 $14,310,161 $10,492,500 $ 5,204,410 $15,637,698 $20,045,000 $12,845,000 $88,305,284 $ 88,557,120 $82,768,020 $ 1,474,614 $ 1,562,130 $ 1,720,490 $22,277,795 $ 23,541,160 $25,005,690 2,284,711 2,870,950 2,997,320 72,950 6,894,351 22,969,053 17,447,390 17,868,640 828,458 696,430 586,680 2,840,145 2,853,650 2,717,180 4,089,009 20,045,000 12,845,000 4,441,314 20,181,940 16,525,000 8,645,844 9,420,630 10,080,090 70,000 43,000 40,000 9,800,000 5,604,820 435,000 1,433,064 12,221,324 8,111,230 4,911,230 2,365,000 8,870,000 3,290,000 2,365,000 8,870,000 3,290,000 1,579,424 1,486,000 1,487,340 1,854,793 1,758,590 1,855,240 $ 4,657,783 $ 5,172,510 $ 5,344,490 $13,744,424 $16,033,770 $ 5,212,340 $12,416,424 $20,045,000 $12,845,000 $77,615,268 $ 92,184,590 $82,253,070 $ 440,736 $ 79,420 $ 19,600 $ 565,737 $ (5,541,270) $ (7,930) $ 3,221,274 $ $ $10,690,016 $ (3,627,470) $ 514,950 (2,124) - - - - (7,437) - (318,362) $ 9,951,769 $10,392,505 $10,471,925 $ 10,278,411 $10,844,148 $ 5,302,878 $15,597,612 $18,818,886 $18,818,886 $69,093,070 $ 79,783,086 $76,155,616 $10,392,505 $10,471,925 $10,491,525 $ 10,844,148 $ 5,302,878 $ 5,294,948 $18,818,886 $18,818,886 $18,818,886 $79,783,086 $ 76,155,616 $76,670,566 -26- COMPARATIVE ANALYSIS OF REVENUES ALL FUNDS 2018 2019 Actual Budget 2019 Revised 2020 Budget *General Fund 22,782,899 24,230,620 $ 24,211,600 25,438,820 Special Revenue Funds Liquor Contribution Fund 2,128 450,950 950 450,950 Tourism Administration 14,266 13,400 10,500 10,500 Communications 427,234 443,700 392,000 395,800 Elections 359,783 271,500 361,000 378,500 Drug Felony/Forfeiture 55,589 41,850 61,200 42,000 Public Safety Compliance 50,879 31,380 65,790 14,700 Recreation Contributions 42,659 30,150 30,200 30,220 Nature Center Contributions 93,601 73,500 94,100 94,200 Public Health Grants 53,861 36,870 53,050 53,150 Wood Lake Half Marathon 59,824 69,100 69,500 69,500 Franchise Fees 1,860,744 1,837,000 1,852,000 1,847,000 Ice Arena 1,388,119 1,169,390 1,237,170 4,959,990 Swimming Pool 470,936 507,010 537,310 563,150 Special Facilities 156,315 46,090 141,190 40,400 Enterprise Funds *Liquor 11,671,168 12,572,020 12,595,000 13,476,810 Water & Sewer Utility 10,421,236 9,214,210 9,250,710 9,571,700 Storm Sewer Utility 3,347,665 1,791,920 1,804,420 1,917,130 Internal Service Funds Central Garage 2,011,653 2,186,970 2,194,950 2,248,010 Information Technologies 1,116,525 1,188,800 1,186,920 1,223,900 Self Insurance 1,049,085 981,430 972,920 968,000 Building Services 890,849 886,940 897,140 924,180 Compensated Absences 30,407 - - - Debt Service Funds *G.O. Improvement Bonds 13,440,795 3,997,580 9,624,400 4,330,130 G.O. Redevelopment Bonds 869,366 868,050 868,100 874,280 Capital Improvement Funds Recreational Development 418,472 450,000 450,000 4,130,000 *Right -of -Way Improvements 15,219,226 27,690,000 17,030,000 5,630,000 Public Facilities - 2,935,000 2,565,000 3,085,000 Total $ 88,305,284 $ 94,015,430 $ 88,557,120 $ 82,768,020 * These funds represent major funds of the City. Major funds represent the significant activities of the City and basically include any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. -27- COMPARATIVE ANALYSIS OF EXPENDITURES ALL FUNDS 2018 2019 2019 2020 Actual Budget Revised Budget *General Fund Legislative/Executive $ 837,836 $ 928,660 $ 866,050 $ 927,410 Administrative Services 668,263 746,390 856,240 961,630 Finance 674,332 657,700 649,850 673,000 Public Safety 8,671,310 9,516,580 9,507,900 9,847,770 Fire 4,237,354 4,441,800 4,467,460 4,850,230 Community Development 1,471,067 1,574,280 1,576,100 1,629,150 Public Works 4,075,249 4,187,140 4,106,440 4,299,810 Recreation Services 1,896,519 1,968,070 1,971,560 2,029,820 Operating transfers 195,000 210,000 210,000 220,000 Subtotal $ 22,726,930 $ 24,230,620 $ 24,211,600 $ 25,438,820 Special Revenue Funds Liquor Contribution Fund - 450,000 - 450,000 Tourism Administration 9,839 10,130 10,130 10,130 Communications 376,886 490,100 300,570 480,260 Election 118,254 141,690 160,300 133,460 Drug Felony/Forfeiture 10,484 42,160 41,630 43,000 Public Safety Compliance 25,690 29,300 49,840 8,200 Recreation Contributions 20,214 20,000 21,000 21,000 Nature Center Contributions 87,294 74,200 91,100 92,000 Public Health Grants 48,554 36,320 48,330 48,330 Wood Lake Half Marathon 66,803 60,000 63,800 63,800 Franchise Fees 398,265 2,039,480 2,039,480 2,943,020 Ice Arena 1,205,071 993,860 1,026,470 4,755,310 Swimming Pool 423,453 464,420 466,860 481,490 Special Facilities 144,431 46,460 137,690 47,970 Enterprise Funds *Liquor 11,105,484 12,347,750 12,003,270 13,194,070 Water & Sewer Utility 8,228,587 8,211,380 8,169,200 8,354,280 Storm Sewer Utility 1,800,398 2,127,390 2,092,040 2,286,100 Internal Service Funds Central Garage 2,000,854 2,059,120 1,892,750 1,830,100 Information Technologies 1,079,420 1,222,810 1,258,090 1,453,700 Self Insurance 690,949 1,145,220 1,124,530 1,136,880 Building Services 856,153 893,870 897,140 923,810 Compensated Absences 30,407 - Debt Service Funds G.O. Improvement Bonds 12,875,058 9,993,890 15,165,670 4,338,060 G.O. Redevelopment Bonds 869,366 868,050 868,100 874,280 Capital Improvement Funds Recreational Development 458,387 450,000 450,000 4,130,000 "Right -of -Way Improvements 11,958,037 27,690,000 17,030,000 5,630,000 Public Facilities - 2,935,000 2,565,000 3,085,000 Total $ 77,615,268 $ 99,073,220 $ 92,184,590 $ 82,253,070 * These funds represent major funds of the City. Major funds represent the significant activities of the City and basically include any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. -28- COMPARATIVE ANALYSIS OF EXPENDITURES BY MAJOR OBJECTIVE ALL FUNDS Current Expenses Personal Services Other Services & Charges Subtotal Capital Outlay Improvements Depreciation Liquor and Recreation: Cost of Goods Sold 2018 2019 Actual Budget 2019 Revised 2020 Budget $ 22,277,795 $ 23,656,090 $ 23,541,160 $ 25,005,690 22,969,053 17,196,920 17,447,390 17,868,640 $ 45,246,848 $ 40,853,010 $ 40,988,550 $ 42,874,330 4,441,314 31,075,000 20,181,940 16,525,000 2,840,145 2,887,320 2,853,650 2,717,180 8,645,844 9,413,600 9,420,630 10,080,090 Transfers 12,221,324 4,141,410 8,111,230 4,911,230 Debt Service 4,219,793 10,702,880 10,628,590 5,145,240 TOTAL $ 77,615,268 $ 99,073,220 $ 92,184,590 $ 82,253,070 -29- GENERAL FUND -30- COMPARATIVE ANALYSIS OF 2019 ADOPTED, 2019 REVISED AND 2020 BUDGET - GENERAL FUND REVENUES Property Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeitures Miscellaneous Revenues Transfers Total Revenues EXPENDITURES Legislative/Executive Administrative Services Finance Public Safety Fire Community Development Public Works Recreation Services Transfers Total Expenditures Adopted/ Proposed % Increase/ Adopted 2019 Revised 2019 Proposed 2020 (Decrease) $ 16,549,150 1,066,100 2,413,850 2,210,420 330,000 110,550 1,550,550 $ 24,230,620 $ 16,549,150 1,701,500 2,447,540 2,551,370 310,000 96,800 555,240 $ 24,211,600 $ 17,311,530 1,106,600 2,646,600 2,337,800 325,000 108,080 1,603,210 $ 25,438,820 $ 928,660 $ 866,050 $ 927,410 746,390 856,240 961,630 657,700 649,850 673,000 9,516,580 9,507,900 9,847,770 4,441,800 4,467,460 4,850,230 1,574,280 1,576,100 1,629,150 4,187,140 4,106,440 4,299,810 1,968,070 1,971,560 2,029,820 210,000 210,000 220,000 $ 24,230,620 $ 24,211,600 $ 25,438,820 4.61 % 3.80% 9.64% 5.76% -1.52% -2.23% 3.40% 4.99% -0.13% 28.84% 0.00% 3.48% 9.20% 3.49% 2.69% 3.14% 4.76% 4.99% The 2019 Proposed General Fund budget reflects a 4.99% increase in revenues and expenditures as compared to the 2019 Adopted budget. The 2019 Revised budget reflects a .08% decrease when compared to the 2019 Adopted budget. REVENUES The primary source of revenues for the General Fund continues to be property taxes, charges for services, intergovernmental revenues and the transfer in of revenues to fund general fund operations. For the 2020 Proposed budget these four sources account for 94% of total General Fund revenues. Over the last several years the City has employed a strategy to eliminate its dependence on Local Government Aid (LGA) as a response to reductions and unallotments of state aid by the State of Minnesota. However, in response to market value increases, debt service levies, and a new Economic Development Authority levy, the City has increased it's budgeted level of LGA to $1,450,000 in order to mitigate these pressures on the tax levy. EXPENDITURES The largest expenditures incurred by the General Fund remain those for public safety, fire and public works. The proposed 2020 tax levy for the General Fund does not even cover the budgeted 2020 expenditures of these three departments. -31- COMPARATIVE ANALYSIS OF FUND BALANCE - GENERAL FUND Fund Balance - January 1 Revenue and Transfers Total Available Expenditures and Transfers Fund Balance - December 31 Fund Balances: Nonspendable Unassigned Total Fund Balance SOURCE Taxes Licenses and Permits Intergovernmental Revenues: Local Government Aid Other Subtotal Charges for Services Fines and Forfeitures Miscellaneous Revenues Transfers Total Revenues 2018 2019 2019 2020 Actual Budget Revised Budget $ 8,754,327 $ 8,810,296 $ 8,810,296 $ 8,810,296 22,782,899 24,230,620 24,211,600 25,438,820 31,537,226 33,040,916 33,021,896 34,249,116 22,726,930 24,230,620 24,211,600 25,438,820 $ 8,810,296 $ 8,810,296 $ 8,810,296 $ 8,810,296 $ 91,050 82,273 $ 91,050 $ 91,050 8,719,246 8,672,054 8,719,246 8,719,246 $ 8,810,296 $ 8,754,327 $ 8,810,296 $ 8,810,296 Revised Budget 2019 Budget 2020 Total Percent Total Percent $ 16,549,150 68.35% $ 17,311,530 68.05% 1,701,500 7.03% 1,106,600 4.34% 1,200,000 4.96% 1,450,000 5.70% 1,247,540 5.15% 1,196,600 4.70% 2,447,540 85.49% 2,646,600 82.81 % 2,551,370 10.54% 2,337,800 9.19% 310,000 1.28% 325,000 1.28% 96,800 0.40% 108,080 0.42% 555,240 2.29% 1,603,210 6.30% $ 24,211,600 100.00% $ 25,438,820 100.00% -32- COMPARATIVE ANALYSIS OF REVENUES - GENERAL FUND 2018 2019 2019 2020 Actual Budget Revised Budget Taxes Current Ad Valorem $ 13,362,738 $ 12,911,737 $ 12,911,737 $ 13,674,117 Fiscal Disparities 2,640,686 3,637,413 3,637,413 3,637,413 Total Property Taxes $ 16,003,424 $ 16,549,150 $ 16,549,150 $ 17,311,530 License and Permits Business Licenses $ 340,866 $ 345,100 $ 327,000 $ 338,000 Non Business Licenses and Permits 1,044,422 721,000 1,374,500 768,600 Total License and Permits $ 1,385,288 $ 1,066,100 $ 1,701,500 $ 1,106,600 Intergovernmental Revenue Federal - Grants $ 97,568 $ 128,820 $ 125,630 $ 94,000 State : Local Government Aid 1,150,000 1,200,000 1,200,000 1,450,000 Law Officer Training 40,194 40,000 40,000 40,000 Police State Aid 412,971 383,000 390,000 395,000 Fire State Aid 163,754 164,000 164,000 168,600 State -aid Street Maintenance 315,000 315,000 315,000 315,000 Grants - Other 37,701 25,250 49,630 20,750 County - Community Health Services 134,407 134,440 134,440 134,410 Grants - Other 31,568 23,340 28,840 28,840 Total Intergovernmental Revenue $ 2,383,163 $ 2,413,850 $ 2,447,540 $ 2,646,600 Charaes for Services General Government $ 974,201 $ 814,000 $ 1,079,100 $ 833,600 Deputy Registrar 789,085 935,000 1,015,000 1,050,000 Public Safety 50,086 40,300 44,500 49,000 Park and Recreation 357,411 348,570 338,790 331,140 Nature Center 75,835 72,550 73,980 74,060 Total Charges for Services $ 2,246,618 $ 2,210,420 $ 2,551,370 $ 2,337,800 -33- COMPARATIVE ANALYSIS OF REVENUES - GENERAL FUND 2018 2019 2019 2020 Actual Budget Revised Budget Fines and Forfeits Municipal Court Fines $ 310,713 $ 330,000 $ 310,000 $ 325,000 Total Fines and Forfeits $ 310,713 $ 330,000 $ 310,000 $ 325,000 Miscellaneous Revenues Investment Income $ 93,957 $ 46,570 $ 46,570 $ 55,000 Rents 30,391 32,680 32,930 33,630 Recovery - Damage to Property 13,391 5,000 5,500 5,500 Other 16,034 26,300 11,800 13,950 Total Miscellaneous Revenues $ 153,773 $ 110,550 $ 96,800 $ 108,080 Transfers $ 299,920 $ 1,550,550 $ 555,240 $ 1,603,210 TOTAL REVENUES $ 22,782,899 $ 24,230,620 $ 24,211,600 $ 25,438,820 -34- COMPARATIVE ANALYSIS OF EXPENDITURES - GENERAL FUND ;gislative/Executive Mayor -Council Other Agencies City Manager Legal Subtotal Administrative Services Administration Human Resources City Clerk Subtotal Finance Finance Assessing Subtotal Public Safety Support Services Police Emergency Services Subtotal Fire Fire Subtotal Community Development Administration Planning & Zoning Inspections Subtotal Public Works Administration Engineering Streets Park Maintenance Subtotal Recreation Services Recreation Administration 2018 2019 2019 2020 Actual Budget Revised Budget $ 261,521 $ 235,440 $ 243,250 $ 217,300 98,230 99,560 99,560 100,860 224,746 246,260 175,840 255,810 253,339 347,400 347,400 353,440 $ 837,836 $ 928,660 $ 866,050 $ 927,410 $ 60,596 $ 114,630 $ 154,820 $ 165,580 24,499 69,330 52,280 63,260 583,168 562,430 649,140 732,790 $ 668,263 $ 746,390 $ 856,240 $ 961,630 $ 295,319 $ 308,070 $ 307,010 $ 319,420 379,013 349,630 342,840 353,580 $ 674,332 $ 657,700 $ 649,850 $ 673,000 $ 914,476 $ 981,370 $ 996,890 $ 1,077,240 7,733,912 8,498,720 8,473,980 8,733,420 22,922 36,490 37,030 37,110 $ 8,671,310 $ 9,516,580 $ 9,507,900 $ 9,847,770 $ 4,237,354 $ 4,441,800 $ 4,467,460 $ 4,850,230 $ 4,237,354 $ 4,441,800 $ 4,467,460 $ 4,850,230 $ 67,543 $ 69,310 $ 70,800 $ 72,900 300,603 307,980 310,930 318,560 1,102,921 1,196,990 1,194,370 1,237,690 $ 1,471,067 $ 1,574,280 $ 1,576,100 $ 1,629,150 $ 179,744 $ 188,970 $ 185,220 $ 190,700 340,546 336,820 245,230 278,560 2,263,665 2,335,600 2,332,560 2,393,320 1,291,294 1,325,750 1,343,430 1,437,230 $ 4,075,249 $ 4,187,140 $ 4,106,440 $ 4,299,810 $ 386,198 $ 375,590 $ 353,290 $ 361,800 -35- COMPARATIVE ANALYSIS OF EXPENDITURES - GENERAL FUND Recreation Nature Center Subtotal Transfers Out Special Revenue Funds TOTAL EXPENDITURES 2018 2019 Actual Budget 955,276 1,038,020 555,045 554,460 2019 2020 Revised Budget 1,038,370 1,085,640 579,900 582,380 $ 1,896,519 $ 1,968,070 $ 1,971,560 $ 2,029,820 $ 195,000 $ 210,000 $ 210,000 $ 220,000 $ 195,000 $ 210,000 $ 210,000 $ 220,000 $ 22,726,930 $ 24,230,620 $ 24,211,600 $ 25,438,820 -36- THIS PAGE WAS LEFT BLANK INTENTIONALLY -37- FUND: DEPARTMENT: GENERALFUND Legislative/Executive DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 (Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10100 Mayor Council $ 261,521 $ 235,440 $ 243,250 $ 217,300 (7.70%) 10105 Other Agencies 98,230 99,560 99,560 100,860 1.31 % 10115 City Manager 224,746 246,260 175,840 255,810 3.88% 10120 Legal 253,339 347,400 347,400 353,440 1.74% Legislative/Executive TOTAL $ 837,836 $ 928,660 $ 866,050 $ 927,410 (0.13%) $1,000,000 E X P $800,000 E N D $600,000 T U R $400,000 E S $200,000 $0 LEGISLATIVE/EXECUTIVE EXPENDITURES 2018 2019B 2019R 2020B YEAR -38- CITY COUNCIL DIVISION MISSION STATEMENT To function as the legislative and policy -making body of Richfield city government. DIVISION FOCUS The Richfield City Council is composed of an elected at -large Mayor and four Council Members, one of which is elected at -large. The Mayor and the Council Members are each elected to four-year terms. The City Council sets the long-range direction of the City and establishes policies that maintain a high quality of life for Richfield residents. 2019 HIGHLIGHTS • Managed the transition to a new City Manager, new Mayor and 2 new Council Members with new Council onboarding process and Council/Staff retreats. • Developed 2020 goals and objectives at strategic planning work sessions. Goals and objectives guided staff development of action steps and budget for 2020. • Strengthened relationships with community organizations including virtual State of the Community event with Richfield Public Schools, Richfield Chamber of Commerce and the Richfield Foundation. • Fostered greater community engagement by serving as liaisons to City boards and commissions, meeting with residents and by supporting a variety of community initiatives. • Increased Richfield's regional presence with positive earned media and partnering with regional organizations like the 1-494 Corridor Commission, 1-35W Solutions Alliance, Greater MSP and Regional Council of Mayors. • Advocated for City priorities at the federal, state and county level. 2020 DIVISION GOALS • Expand strategic planning process to include greater community, Council and staff engagement, including a community survey. • Incorporate updated mission, vision, values and goals into the City budget and Capital Improvement Plan. • Strengthen relationship with staff and continue to create operating norms that enable a high functioning team. • Provide additional equity training to staff, develop an equity tool kit to operationalize equity in City programs and procedures. • Work with community organizations to increase participation in the 2020 Census - especially Richfield's hard to count populations. • Continue to improve partnership with community organizations, including schools, civic groups, nonprofits and local businesses. • Increase Richfield's visibility with earned media, public speaking at key local and regional events and by regularly engaging with our neighbors and regional organizations. -39- • Continue to advocate for City priorities at the federal, state and county level. DIVISION EXPENDITURE COMMENT The 2019 Revised budget has an increase of 3.3% over the 2019 Adopted budget due to increases in personal services and a consultant for $4,500. The 2020 Proposed budget has a decrease of 7.7% from the 2019 Adopted budget due to decreases in personal services from removing the Executive Analyst and Deputy City Clerk positions from this budget and moving their costs to the City Manager and City Clerk Divisions, respectively. -40- FUND: GENERALFUND DEPARTMENT: Legislative/Executive BUSINESS UNIT: Mayor Council - 10100 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 101,761 $ 101,860 $ 102,350 $ 50,810 6031 Employer Social Security 5,227 5,690 4,580 1,360 6032 Employer Medicare 1,325 1,470 1,480 740 6033 Employer Pera 4,957 4,870 5,390 1,440 6035 Medical Insurance 7,930 9,480 9,900 - 6036 Dental Insurance 571 540 570 - 6037 Term Life 17 30 40 - 6038 Workers Compensation 1,056 60 60 60 6040 Long Term Disability - 180 190 - Personal Services Total $ 122,844 $ 124,180 $ 124,560 $ 54,410 Other Services & Charges 6103 Professional Services -General $ 30,245 $ 200 $ 200 $ 42,200 6202 Data Processing Rental 1,990 2,110 2,190 2,370 6207 Utility Services 14,904 15,370 15,370 15,830 6301 Advertising & Publication 351 150 150 150 6303 Professional Development 4,619 8,000 13,760 14,630 6305 Subscriptions & Memberships 58,329 56,140 57,380 58,030 6307 Insurance & Bonds 734 720 770 790 6308 Property Liability 480 490 490 510 6401 Office Supplies 278 800 800 800 6402 Copy Charges 588 700 700 700 6403 Postage 19 80 80 80 6409 Uniforms & Clothing - - 750 750 6513 Other Charges 26,140 26,000 26,050 26,050 6530 Contingency - 500 - - Other Services & Charges Total $ 138,677 $ 111,260 $ 118,690 $ 162,890 Mayor Council TOTAL $ 261,521 $ 235,440 $ 243,250 $ 217,300 IMe FUND: DEPARTMENT: BUSINESS UNIT: GENERALFUND Legislative/Executive Mayor Council - 10100 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Executive Analyst GS-5E .40 .40 - Deputy City Clerk GS-4 .40 .40 - Total .80 .80 - Part -Time Employees Mayor Exempt 1.00 1.00 1.00 Council Member Exempt 4.00 4.00 4.00 Total 5.00 5.00 5.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -42- OTHER AGENCIES DIVISION MISSION STATEMENT To award grants to certain agencies delivering services to residents in Richfield that are within the legal guidelines as provided by Minnesota State Statutes, the State of Minnesota Constitution and the Minnesota Attorney General's office. DIVISION FOCUS The Other Agencies Division focus is providing the annual grants to human service agencies serving Richfield residents in a legally responsible way. 2019 HIGHLIGHTS • Eight non-profit agencies were awarded $70,480 in grants to provide services to Richfield residents. 2020 DIVISION GOALS • Where legally allowable under State Statutes, fund social service agencies as an illustration of the City and community support for these agency services. DIVISION EXPENDITURE COMMENT The 2020 Proposed realizes a 1.31 % increase over the 2019 Adopted budget due to personal services increases. The allocation of the 2020 grants, where legally allowable, will be determined by the City Council in January 2020. -43- FUND: GENERALFUND DEPARTMENT: Legislative/Executive BUSINESS UNIT: Other Agencies - 10105 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6051 Interdepartmental Labor $ 27,750 $ 29,080 $ Personal Services Total $ 27,750 $ 29,080 $ Other Services & Charges 6515 Human Services - Unallocated $ 70,480 $ 70,480 $ Other Services & Charges Total $ 70,480 $ 70,480 $ Other Agencies TOTAL $ 98,230 $ 99,560 $ 29,080 $ 30,380 70,480 $ 70,480 yZ7,avv �p ivv,ow IMEE CITY MANAGER DIVISION MISSION STATEMENT Plan and direct the administration of City projects and programs as established by the City Charter, City ordinances and the City Council to ensure efficient, cost-effective municipal services and development consistent with City Council direction and goals. DIVISION FOCUS The City Manager is the chief administrative officer of the City and is responsible to the City Council for the supervision of all departments and divisions of City administration except where otherwise provided by law or City Charter. The implementation of City Council policies takes precedence over all other City Manager responsibilities. 2019 HIGHLIGHTS • Managed the transition to a new City Manager, new Mayor and 2 new Council Members with new Council onboarding process and Council -staff retreats. • Developed 2020 goals and objectives at strategic planning work sessions. Goals and objectives guided staff development of action steps and budget for 2020. • Presented the City's Key Financial Strategies to the Council earlier in the budget process to inform critical 2020 budget decisions. • Implemented a weekly City Manager Report to improve communication with Council and staff. • Improved work sessions to facilitate better policy discussions and more transparency. • Improved the commission recruitment process; resulting in near record number of applicants. • Continue to manage City budgets to meet targeted fund balance goals; the 2018 audited financial results reflected an increase in the City's General Fund balance by $52,723, and 2019 is on track produce similar results. • Hired a new Recreation Services Director, established regular one-on-one meetings with department directors and attend Division meetings/events to meet directly with staff to learn more about daily operations. • Partnered with local legislators to advance key City priorities at the Legislature including funding for the 77th Underpass, increasing Local Government Aid, and MNLARS reimbursement and rate increases for Deputy Registrar operations. 2020 DIVISION GOALS • Improve communication and engagement with community, Council and staff: including an expanded strategic planning process and community survey. • Prepare 2021 City budget to better align resources with strategic planning outcomes. -45- • Continue to provide and review a variety of options to ensure the most cost effective and efficient mean of providing service. • Work with community organizations to increase participation in the 2020 Census - especially Richfield's hard to count populations. • Participate in regional organizations like 1-494 Corridor Commission, 1-35W Solutions Alliance, Greater MSP and regularly engage with neighboring cities, MAC, Met Council, MnDOT and Hennepin County. • Work with Administrative Services and department directors to implement priorities highlighted in the 2019 Employee Engagement Survey. • Review procurement and workforce policies to promote diversity and inclusion and a strong local economy. • Update the agreement with Richfield Tourism and Promotion Board which was first enacted in 1990. • Partner with local legislators to advance key City priorities at the Legislature including funding for the 77th St Underpass. DIVISION EXPENDITURE COMMENT The 2019 Revised budget has a decrease of 40.2% from the 2019 Adopted budget due to decreases in personal services from removing the Administrative Services Director/Assistant City Manager position from this budget and moving the costs to the Administrative Services Division budget. The 2020 Proposed budget has an increase of 3.8% from the 2019 Adopted budget due to changes in personal services, including moving the Executive Analyst position fully into the City Manager Division and the addition of a Senior Office Assistant position shared between the City Manager Division and the Fire Department. -46- FUND: GENERALFUND DEPARTMENT: Legislative/Executive BUSINESS UNIT: City Manager - 10115 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 6031 Employer Social Security 6032 Employer Medicare 6033 Employer Pera 6035 Medical Insurance 6036 Dental Insurance 6037 Term Life 6038 Workers Compensation 6040 Long Term Disability 6054 Interdepartmental Labor Credit 6055 Administrative Labor Credit Personal Services Total $ Other Services & Charges 6103 Professional Services -General $ 6202 Data Processing Rental 6207 Utility Services 6302 Communications 6303 Professional Development 6305 Subscriptions & Memberships 6307 Insurance & Bonds 6308 Property Liability 6401 Office Supplies 6402 Copy Charges 6403 Postage Other Services & Charges Total $ 257,064 $ 281,910 $ 202,710 $ 251,620 13,461 12,840 10,150 12,510 3,841 4,000 2,920 3,530 18,898 20,910 15,210 18,880 27,195 28,200 21,850 38,810 1,345 1,430 1,270 1,880 784 1,000 80 110 1,536 1,250 1,250 1,340 648 670 700 870 - (5,000) - - /40A 12Al1\ /40C Or)O\ /474 4G!1\ /444 4AO\ 157 $ 150 $ 160 $ 160 16,000 16,480 16,580 16,900 7,440 7,670 7,670 7,900 450 540 1,080 1,080 6,457 3,500 10,030 5,900 1,118 2,900 2,000 2,040 1,836 1,800 1,930 1,990 920 950 950 980 142 300 300 300 78 4 r_ 100 rn 100 cr% 100 rn City Manager TOTAL $ 224,746 $ 246,260 $ 175,840 $ 255,810 -47- FUND: GENERAL FUND DEPARTMENT: Legislative/Executive BUSINESS UNIT: City Manager - 10115 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ City Manager Exempt 1.00 1.00 1.00 Asst. City Manager M-4 .40 - - Executive Analyst GS-5E .60 .60 1.00 Senior Office Assistant GS-2 - .60 .60 Total 2.00 2.20 2.60 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -48- LEGAL DIVISION MISSION STATEMENT To provide legal services as required by the City of Richfield. DIVISION FOCUS The Legal Division includes legal services and costs for general corporate representation and municipal prosecution representation. The firm of Kennedy and Graven provides general corporate representation for the City. Services provided include attendance at all City Council meetings; attendance as requested by the Council or City staff at meetings with staff, public groups and public hearings; review and preparation of contacts, performance bonds, insurance and other routine legal documents; review and preparation of ordinance code amendments and resolutions; formal and informal legal advice to Council, staff, commissions and committees; training sessions with officials and staff to discuss topics including but not limited to important legislative or judicial developments; and formal and informal advice on human resource matters including interpretations of federal, state and local rules and regulations relating to human resources matters. Martin J. Costello provides prosecution services. Prosecution legal services provided include advising; ordinance enforcement; peace officer training; charging; calendar appearances; court trials; pretrial conferences and omnibus hearings; jury trials; sentencing; and appeals. 2019 HIGHLIGHTS • Continued excellent legal representation by both Kennedy and Graven and Martin J. Costello. 2020 DIVISION GOALS • To ensure that the City has the best legal representation possible for all facets of its operation. DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects no increase over the 2019 Adopted. The 2020 Proposed budget increases 1.74% over the 2019 Adopted due to increases in service levels over the prior year. -49- FUND: GENERALFUND DEPARTMENT: Legislative/Executive BUSINESS UNIT: Legal - 10120 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Other Services & Charcies 6103 Professional Services -General $ 95,280 6105 Prosecution 156,919 6308 Property Liability 1,140 Other Services & Charges Total $ 253,339 Legal TOTAL $ 253,339 $ 178,230 $ 178,230 $ 178,230 168,000 168,000 174,000 $ 347,400 $ 347,400 $ 353,440 $ 341,400 $ 347,400 $ 353,440 -50- THIS PAGE WAS LEFT BLANK INTENTIONALLY ME FUND: GENERALFUND DEPARTMENT: Administrative Services DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10200 Administration $ 60,596 $ 114,630 $ 154,820 $ 165,580 44.45% 10205 Human Resources 24,499 69,330 52,280 63,260 (8.76%) 10215 City Clerk 583,168 562,430 649,140 732,790 30.29% Administrative Services TOTAL $ 668,263 $ 746,390 $ 856,240 $ 961,630 28.84% REVENUES 10215 City Clerk $ 789,085 $ 935,000 $ 1,015,000 $ 1,050,000 12.30% $1,000,000 E X p $800,000 E N D $600,000 T U R $400,000 E s $200,000 $0 ADMINISTRATIVE SERVICES EXPENDITURES 2018 2019B 2019R 2020B YEAR -52- ADMINISTRATION DIVISION MISSION STATEMENT To provide managerial direction to the Administrative Services Department, including the general supervision of human resources, licensing/city clerk activities, communications and engagement, government buildings, information technologies, and risk management. DIVISION FOCUS The Administrative Services Director serves as the supervisor of Administrative Services Department, including this division. The Administrative Services Director is responsible for the overall direction and coordination of most of the City's administrative support service activity that allows the other City departments to operate more effectively and to create an optimal environment for employees. Within the Human Resources function, the Administrative Services Director is responsible for contract administration, contract negotiation and employee relations. Much of the policy making of the area is handled by the Human Resources Manager, with input from the Administrative Services Director and City Manager. This division is also responsible for the overall administration of the City's self-insurance fund and risk management program. These coverages include workers' compensation, property/casualty, dental and specialty coverages for the City, HRA and EDA. Rate changes for the coverages are determined by the division. 2019 HIGHLIGHTS • Acknowledged by the Minnesota Governor for our 100% timeliness in reporting workers compensation claims within the 14-day state -mandated timeline. • Continued to promote employee wellness through the THRIVE program. Realized improved medical claims experience resulting in lower premiums. • Conducted an employee survey to provide baseline date on our racial awareness. • Coordinated Racial IQ workshop for all staff. Hosted a Somali culture presentation for staff. 2020 GOALS • Continue to encourage and promote employee wellness. • Support City-wide staff training on equity and diversity (Goal 3). • Focus efforts on the delivery of excellent customer service, both internally and externally (Goal 6) DIVISION EXPENDITURE COMMENT The Administrative Services Division budget reflects a significant increase due to the reallocation of the entire Administrative Services Director position to this budget as well as the reclassification of the position. Additionally, there are some nominal increases to account for planned city-wide employee training costs and costs associated with the City's racial equity work. -53- FUND: GENERALFUND DEPARTMENT: Administrative Services BUSINESS UNIT: Administration - 10200 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 23,323 $ 126,690 $ 139,840 $ 146,610 6031 Employer Social Security 1,070 5,740 6,620 6,620 6032 Employer Medicare 250 1,820 2,020 2,080 6033 Employer Pera 1,321 7,720 10,490 11,000 6035 Medical Insurance 991 13,500 11,990 15,740 6036 Dental Insurance 71 1,010 720 720 6037 Term Life 2 60 40 40 6038 Workers Compensation 48 40 40 70 6040 Long Term Disability - 380 480 500 6054 Interdepartmental Labor Credit - (75,870) (56,760) (58,460) 6055 Administrative Labor Credit (80,840) (82,760) (81,940) (84,240) Personal Services Total $ (53,764) $ (1,670) $ 33,540 $ 40,680 Other Services & Charges 6103 Professional Services -General $ 63 $ 50 $ 50 $ 50 6202 Data Processing Rental 9,765 10,130 10,350 10,520 6207 Utility Services 100,632 103,800 103,800 106,910 6303 Professional Development 2,229 500 3,300 3,400 6305 Subscriptions & Memberships 25 - 1,550 1,580 6307 Insurance & Bonds 913 900 960 990 6308 Property Liability 580 600 600 620 6401 Office Supplies 80 100 100 100 6402 Copy Charges 3 30 30 30 6403 Postage - 40 40 40 6414 Other Supplies 70 150 500 660 Other Services & Charges Total $ 114,360 $ 116,300 $ 121,280 $ 124,900 Administration TOTAL $ 60,596 $ 114,630 $ 154,820 $ 165,580 -54- FUND: GENERAL FUND DEPARTMENT: Administrative Services BUSINESS UNIT: Administration - 10200 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Administrative Services Director M-5A 1.00 1.00 1.00 Total 1.00 1.00 1.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -55- HUMAN RESOURCES DIVISION MISSION STATEMENT To enhance the quality of City employment by formulating, implementing and administering ordinances, policies and procedures pertaining to Human Resources and Risk Management issues. DIVISION FOCUS This Division is responsible for the administration of the Human Resources ordinances, personnel policies, classification and pay plans, recruitment and selection activities, employee safety, employee relations, employee training, labor contract administration, labor negotiations, the Americans with Disabilities Act plan, and risk management. The Division is administered by the Administrative Services Director and the HR Manager, with input from the City Manager. The Administrative Service Director is responsible for contract administration, contract negotiation and employee relations. The HR Manager is responsible for recruitment, employee benefits, compensation and insurance claims. Both positions work with the City Manager in the administration of the Risk Management/Self-Insurance and labor relation functions. 2019 HIGHLIGHTS • Negotiated labor agreements with all five City employee labor groups achieving a three percent wage adjustment for 2019. • Continued to work on the City's recruitment process and onboarding experience for new employees. • Executed a 2019 employee engagement survey, and is actively implementing suggested enhancements within the organization. • Administrative Services Director served on LOGIS Healthcare Committee, which worked on determining long-range health models for the insurance consortium members. 2020 DIVISION GOALS • Continue to review and update Personnel Policies, both to respond to changes in law and update outdated ones. • Continue to monitor the changes to the federal health insurance model. • Assist with succession planning for all City departments. • Focus efforts to increase diversity in the workforce. • Negotiate labor agreements with all labor groups with open contracts. • Continue to assist with organizational changes in response to financial constraints. • Continue training on new or changing Human Resources law. • Continue to work on implementing new measures to make the work place more flexible and nimble for both the benefit of City employees and our City customers. DIVISION EXPENDITURE COMMENT The Human Resources budget reflects personnel services changes. For transparency the budget no longer has an allocation for the Administrative Services Director and is instead only for the HR Manager and HR Administrative Assistant. There no longer is an Assistant HR Manager. -56- FUND: GENERALFUND DEPARTMENT: Administrative Services BUSINESS UNIT: Human Resources - 10205 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 194,717 $ 153,070 $ 158,220 $ 168,830 6031 Employer Social Security 11,991 9,620 9,760 10,420 6032 Employer Medicare 2,804 2,220 2,280 2,440 6033 Employer Pera 14,608 11,480 11,870 12,660 6035 Medical Insurance 23,219 21,450 20,560 22,860 6036 Dental Insurance 1,666 1,430 1,430 1,440 6037 Term Life 47 80 80 80 6038 Workers Compensation 120 120 120 90 6040 Long Term Disability 320 330 330 340 6054 Interdepartmental Labor Credit (198,208) (113,800) (135,800) (139,880) 6055 Administrative Labor Credit (43,920) (41,070) (41,070) (40,800) Personal Services Total $ 7,364 $ 44,930 $ 27,780 $ 38,480 Other Services & Charges 6103 Professional Services -General $ 152 $ 130 $ 130 $ 130 6202 Data Processing Rental 2,307 2,450 2,530 2,740 6301 Advertising & Publication - 100 100 100 6302 Communications 540 400 400 400 6303 Professional Development 3,018 3,500 1,000 1,000 6304 Employee Training - 1,000 3,500 3,500 6305 Subscriptions & Memberships 522 1,200 1,200 1,200 6307 Insurance & Bonds 2,203 2,100 2,320 2,380 6308 Property Liability 460 470 470 480 6312 REEP Program 3,775 10,000 10,000 10,000 6315 Other Contractual Services 2,000 750 750 750 6401 Office Supplies 1,096 1,000 1,000 1,000 6402 Copy Charges 979 1,000 1,000 1,000 6403 Postage 83 300 100 100 Other Services & Charges Total $ 17,135 $ 24,400 $ 24,500 $ 24,780 Human Resources TOTAL $ 24,499 $ 69,330 $ 52,280 $ 63,260 -57- FUND: GENERAL FUND DEPARTMENT: Administrative Services BUSINESS UNIT: Human Resources - 10205 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Assistant City Manager/HR Manager M-4 .40 - - HR Manager M-3 1.00 1.00 1.00 Administrative Assistant GS-4 1.00 1.00 1.00 Total 2.40 2.00 2.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -58- CITY CLERK DIVISION MISSION STATEMENT To serve as clerk to the city council, maintain official city records, serve as Deputy Registrar for the State of Minnesota, manager for the Passport Acceptance Facility, information desk and administer elections and voter registration activities. DIVISION FOCUS The City Clerk Division includes the City Clerk, the Documents Secretary/Deputy City Clerk, One Lead Licensing Clerk, two full time Licensing Clerk and five part time Licensing Clerks. Intermittent and seasonal employees provide the additional staffing flexibility to respond to the peak customer periods and election responsibilities. The City Clerk Division performs customer service functions for the City in the areas of records/information, motor vehicle licensing, passport applications and photos, fish and game license, boat, snowmobiles and ATV registration, information desk, room reservations, domestic partner registration, data requests and voter registration/election function. The division is responsible for preparing, maintaining and distributing information regarding City Council actions through minutes, resolutions and ordinances. These documents are official records of council actions and legislation that governs the City. The division provides customer services to the community in its function as a Deputy Registrar for the State of Minnesota Department of Motor Vehicle Services. Approximately 105,000 transactions are processed each year related to the issuance of license plates, tabs and vehicle title transfers. The division processes passport books and passcard applications and passport/card photos for the United States Department of State. Additional transactions are processed for the Department of Natural Resources, including fishing and other licenses, transfers for boats, snowmobiles, over the road vehicles and registration. The division is responsible for the administration and conduct of the elections in the City. Voter registration and voter information services are provided throughout the year. In 2019, we will continue to work on increasing revenues in both motor vehicle transactions and passport services by being as efficient and accurate as possible. We will also be implementing limited driver license services and disability certificates with the new FAST program through DVS. To assist the Richfield School District with training of election judges, issue absentee ballots and direct balloting and provide them the use of our voting equipment for the School Board Election in November In 2020, our primary focus of the division will be to conduct the first Presidential Primary, State Primary and General Elections and provide adequate staffing for the continued increase in voters for direct balloting. Staff will work to maintain accuracy in our data entry and work diligently to ensure limited wait times for customers. Wait times have been quite lengthy due to staff having to do all the data entry for each transaction. Because of this we have installed a drop -box to be used 24 hours a day for tab renewal -59- and open a fast lane for registration/tabs throughout the day to minimize wait times. Staff also works overtime and on days not scheduled to help with the increase in dealer work and long lines. We will also continue providing excellent customer service in our passport division and maintain a level of quality customer service and work towards 100% error free applications. With all the services we offer we will continue to maximize revenues generated and communicate our core services of equity, equality and efficiency to our customers. 2019 HIGHLIGHTS • Assured all customer service functions of the City Clerk Division met the goals of the City Council of being operationally, excellent and customer focused to maintain Richfield's competitiveness with surrounding communities. • Maintained an accurate record of all City Council Minutes, Ordinances, Resolutions and Legal Notices. Continue with procedure that in weekly director meetings to check in with departments to assure all legal notices are published in a timely manner. • Decreased the wait times for motor vehicle customers by implementing a fast lane for registration/tabs and continue to use and advertise the 24 hour drop box for tabs 2020 DIVISION GOALS • Continue to produce and maintain accurate City records, ordinances and legal notices. • Manage the Election Division to assure the election and voter registration activities are conducted in accordance with Federal, State and City Charter provisions. • Be a fully functional limited driver license office and provide disability certificate services to customers. A registration renewal fast lane will be open all day with this new addition. • Goal 6 — Implementing anew election management system to create efficiencies to decrease redundancies within elections. Initiate a customer service feedback survey of the Deputy Registrar and passport customers to identify opportunities to improve, and ensure service is equitable, inclusive and meets the needs of our customers. DIVISION EXPENDITURE COMMENT The revised 2019 budget reflects a 15.42% increase over the adopted 2019 budget due to the addition of one full time employee and two part time employees. The 2020 Proposed Budget 30.29% increase over the 2019 Adopted budget due to changes in staffing allocation to increase production and to account for additional election staff for the 2020 Presidential Election -60- FUND: GENERALFUND DEPARTMENT: Administrative Services BUSINESS UNIT: City Clerk - 10215 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 231,025 $ 239,000 $ 286,530 $ 326,460 6006 Part-time 162,008 144,610 208,940 217,340 6007 Seasonal 140,576 126,000 68,930 80,030 6009 Overtime 38 - - - 6031 Employer Social Security 30,613 30,540 34,710 38,320 6032 Employer Medicare 7,159 7,140 8,120 8,960 6033 Employer Pera 36,577 37,830 41,620 44,790 6035 Medical Insurance 76,915 78,950 104,950 121,200 6036 Dental Insurance 2,570 2,580 3,590 3,900 6037 Term Life 76 140 180 200 6038 Workers Compensation 756 750 750 740 6040 Long Term Disability 526 530 630 650 6054 Interdepartmental Labor Credit (88,740) (91,400) (91,400) (94,140) 6055 Administrative Labor Credit (90,480) (93,200) (93,200) (96,000) Personal Services Total $ 509,619 $ 483,470 $ 574,350 $ 652,450 Other Services & Charges 6103 Professional Services -General $ 258 $ 300 $ 200 $ 200 6202 Data Processing Rental 40,960 43,710 45,520 49,570 6205 Maintenance & Repairs - 400 180 200 6301 Advertising & Publication 123 150 100 100 6302 Communications 540 540 540 540 6303 Professional Development 3,087 4,840 4,000 4,200 6305 Subscriptions & Memberships 795 700 800 820 6307 Insurance & Bonds 3,295 3,240 3,470 3,580 6308 Property Liability 1,730 1,780 1,780 1,830 6401 Office Supplies 8,471 12,000 10,200 10,500 6402 Copy Charges 297 100 100 100 6403 Postage 11,653 9,500 5,200 5,800 6414 Other Supplies - 500 500 500 6513 Other Charges 2,340 1,200 2,200 2,400 Other Services & Charges Total $ 73,549 $ 78,960 $ 74,790 $ 80,340 City Clerk TOTAL $ 583,168 $ 562,430 $ 649,140 $ 732,790 -61- FUND: GENERALFUND DEPARTMENT: Administrative Services BUSINESS UNIT: City Clerk - 10215 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees City Clerk M-1 1.00 1.00 1.00 Deputy City Clerk GS-4 .60 .60 1.00 Motor Vehicle Lead GS-3 1.00 1.00 1.00 Licensing Clerk GS-2 1.00 2.00 2.00 Total 3.60 4.60 5.00 Intermittent Employees Admin Sery Clerk SP9-E 1.00 1.00 1.00 Receptionist SP-6 1.00 1.00 1.00 Licensing Clerk SP-11 5.00 2.00 2.00 Total 7.00 4.00 4.00 Part -Time Employees Licensing Clerk GS-2 4.00 6.00 6.00 Total 4.00 6.00 6.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -62- THIS PAGE WAS LEFT BLANK INTENTIONALLY -63- FUND: GENERALFUND DEPARTMENT: Finance DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10210 Finance $ 295,320 $ 308,070 $ 307,010 $ 319,420 3.68% 10220 Assessing 379,012 349,630 342,840 353,580 1.13% Finance TOTAL $ 674,332 $ 657,700 $ 649,850 $ 673,000 2.33% REVENUES 10220 Assessing $ 393 $ 500 $ 100 $ 100 (80.00%) $800,000 E X P E $600,000 N D I T $400,000 U R E S $200,000 $0 FINANCE EXPENDITURES 2018 2019B 2019R 2020B YEAR -64- FINANCE DIVISION MISSION STATEMENT To maintain all of the City's financial records, to provide accounting, and financial support services to other City departments and the City's Housing and Redevelopment Authority (HRA). DIVISION FOCUS The Finance Division includes an accountant, a payroll accountant, three account clerical personnel, a utility billing clerk, and the Finance Director, who supervises division activities. • The division prepares and maintains the City's multi -million dollar budget. • The division provides payroll services for approximately 193 full-time employees and as much as 400 employees when seasonal and intermittent employees are added. • In addition, division staff monitors and maintains fixed asset records, miscellaneous accounts receivable and processes disbursements for all divisions. • Process quarterly utility bills for approximately 11,000 customers. • The division monitors and manages the City and HRA investment portfolios which total approximately $39 million. • The division has the responsibility to monitor and manage the City' debt service of approximately $68.3 million. 2019 HIGHLIGHTS • Awarding of the Distinguished Budget Award for the 2018 budget. This is the 33nd consecutive year the City has earned this award. • Awarding of the GFOA Certificate of Achievement for Excellence in Financial Reporting for the 2017 fiscal year. This is the 34th consecutive year the City has earned this award. 2020 FINANCE DIVISION GOALS • Prepare the City's Comprehensive Annual Financial Report before June 30 and maintain the GFOA Certificate of Achievement for Excellence in Financial Reporting award. • Prepare the annual budget and provide the City Council a balanced budget prior to September 15. • Assure that monthly revenue and expenditure reports are distributed by the 10th of the following month to all City departments. • Receipt of the Distinguished Budget Award. • Receipt of an unqualified audit opinion for 2019. DIVISION EXPENDITURE COMMENT The revised 2019 budget reflects a .34% decrease from the 2019 Adopted Budget. The 2020 Proposed budget reflects an increase from the 2019 Adopted Budget of 3.68%. The increases are reflective of personnel and insurance cost increases. -65- FUND: GENERALFUND DEPARTMENT: Finance BUSINESS UNIT: Finance - 10210 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 356,179 6006 Part-time 23,562 6013 Longevity 1,576 6031 Employer Social Security 22,338 6032 Employer Medicare 5,343 6033 Employer Pera 28,552 6035 Medical Insurance 55,525 6036 Dental Insurance 3,183 6037 Term Life 92 6038 Workers Compensation 216 6040 Long Term Disability 784 6054 Interdepartmental Labor Credit (39,280) 6055 Administrative Labor Credit (221,490) Personal Services Total $ 236,580 Other Services & Charges 6103 Professional Services -General $ 5,552 6202 Data Processing Rental 35,480 6205 Maintenance & Repairs 120 6302 Communications 2,083 6303 Professional Development 324 6305 Subscriptions & Memberships 1,060 6307 Insurance & Bonds 5,267 6308 Property Liability 1,040 6401 Office Supplies 4,631 6402 Copy Charges 521 6403 Postage 2,662 Other Services & Charges Total $ 58,740 Finance TOTAL $ 295,320 $ 343,760 $ 343,770 $ 354,570 48,240 48,240 49,690 1,590 1,620 1,670 21,900 22,070 22,540 5,600 5,640 5,800 29,520 29,530 30,440 59,670 58,100 63,330 2,870 2,870 2,880 100 90 90 220 220 220 790 800 820 (40,460) (40,460) (41,540) (228,140) (228,140) (234,990) $ 245,660 $ 244,350 $ 255,520 $ 7,300 $ 7,300 $ 7,400 36,140 36,370 37,080 120 120 120 2,240 2,130 2,170 1,760 1,740 1,740 910 1,160 1,160 5,170 4,830 4,970 1,070 1,070 1,100 4,200 4,490 4,630 800 600 600 2,700 2,850 2,930 $ 62,410 $ 62,660 $ 63,900 $ 308,070 $ 307,010 $ 319,420 -66- FUND: GENERALFUND DEPARTMENT: Finance BUSINESS UNIT: Finance - 10210 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Finance Director M-5A 1.00 1.00 1.00 Accountant GS-6E 1.00 1.00 1.00 Payroll Accountant GS-5E 1.00 1.00 1.00 Accounting Clerk (Accounts Payable) GS-3 1.00 1.00 1.00 Accounting Clerk (Accounts Receivable) GS-3 1.00 1.00 1.00 Total 5.00 5.00 5.00 Part -Time Employees Accounting Clerk 1.00 1.00 1.00 Total 1.00 1.00 1.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -67- ASSESSING DIVISION MISSION STATEMENT To establish the valuation and classification of all real property for taxation purposes and to maintain current information on special assessments placed on individual properties in the City. DIVISION FOCUS The duties of the Assessing staff are defined by the Minnesota Statues and the Minnesota Department of Revenue. Those statutes regulate the assessment and valuation process. An Assessor's responsibilities are to value and classify property, uniformly and accurately. Each year, one fifth of the properties are physically inspected within the City and records are updated. Assessors review sales and perform interior inspections as needed. In addition, assessors annually check on all property for which building permits have been issued during the course of the year in order to establish and adjust value based on the amount of improvements. The homestead application process formerly a function of City staff is now the responsibility of Hennepin County. City staff is now responsible for receiving and recording special assessment records, payments, and perform special assessment searches for property owners, realtors, and appraisers regarding property records and pending special assessments. The search fee derived from this activity is shown as general government revenue to the General Fund. 2019 HIGHLIGHTS • Maintained and updated all property records on the computer database. • Continued successful "Open Book Meetings". • Completed revaluation of residential, commercial, and industrial properties. • Performed an on -going sales verification process. • Monitored exempt properties to keep property files up to date for future valuations. 2020 ASSESSING DIVISION GOALS • Complete the 2020 Assessment by Jan. 2, 2020. • Revaluation of all Residential/Commercial/Industrial properties. • Review all sales, analyze market trends, and accurately set the assessment. • Continue verifying sales for Assessor's Commercial Exchange (ACE) data system. • Continue verifying electronic Certificate of Real Estate Value (ECRV) in the system. • Incorporate additional responsibilities as legislature and market conditions dictate, such as: • Review of Foreclosure Sheriff Sales of City property. • Disabled Veteran Exclusion. • Educate the public on the Homestead Market Value Exclusion. DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects a decrease from the 2019 Adopted Budget due to a decrease in data processing and insurance charges. The 2020 Proposed Budget reflects a slight increase due to an anticipated increase in the contract with Hennepin County for property assessment services. -68- FUND: GENERALFUND DEPARTMENT: Finance BUSINESS UNIT: Assessing - 10220 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 39,240 6031 Employer Social Security 2,723 6032 Employer Medicare 637 6033 Employer Pera 2,996 6035 Medical Insurance 6,541 6036 Dental Insurance 506 6037 Term Life 13 6038 Workers Compensation 47 6040 Long Term Disability 78 Personal Services Total $ 52,781 Other Services & Charges 6103 Professional Services -General $ 315,375 6201 Rents & Leases 1,310 6202 Data Processing Rental 6,973 6302 Communications - 6303 Professional Development 14 6307 Insurance & Bonds 1,145 6308 Property Liability 850 6401 Office Supplies 372 6402 Copy Charges 84 6403 Postage 108 Other Services & Charges Total $ 326,231 Assessing TOTAL $ 379,012 $ 339,500 $ 339,560 $ 350,180 1,430 1,590 1,660 5,980 210 230 70 - - 1,120 - - 880 880 910 200 200 200 200 200 200 250 200 200 $ 349,630 $ 342,840 $ 353,580 $ 349,630 $ 342,840 $ 353,580 -69- FUND: GENERALFUND DEPARTMENT: Public Safety DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10300 Support Services $ 914,476 $ 981,370 $ 996,890 $ 1,077,240 9.77% 10305 Police Operations 7,733,912 8,498,720 8,473,980 8,733,420 2.76% 10315 Emergency Services 22,922 36,490 37,030 37,110 1.70% Public Safety TOTAL $ 8,671,310 $ 9,516,580 $ 9,507,900 $ 9,847,770 3.48% REVENUES 10300 Support Services 10305 Police Operations $10,000,000 E X $8,000,000 P E N $6,000,000 D T U $4,000,000 R E S $2,000,000 $0 $ 525,699 $ 521,440 $ 502,940 $ 519,410 (0.39%) 915,510 927,460 915,670 904,040 (2.53%) PUBLIC SAFETY EXPENDITURES 2018 2019B 2019R 2020B YEAR -70- SUPPORT SERVICES DIVISION MISSION STATEMENT To provide management and administration of health services, business licensing, animal control, food inspections and environmental health services. DIVISION FOCUS The Support Services Division includes the Support Services Division Manager, two part-time Environmental Health Specialists, one full-time Code Compliance Specialist, two part-time Business Licensing Clerks and one part-time Community Service Officer. The Support Services Division performs six major functions for the City. They are: • Environmental Health Code Enforcement • Animal Control • Business Licensing • Public Health Nursing Services • Food Inspection Services • Liaison to the Richfield Advisory Board of Health (Citizens Commission) The division is responsible for responding to complaints received concerning environmental health code violations of private and public property. The division is also responsible for all animal control functions in the community which is handled by a supervisor and one part-time employee. Additionally, the division provides business licensing functions for the City including the licensing and inspection of all food establishments and all liquor/wine/beer establishments in the City. This is also staffed with two part-time job share employees. The division, for 42 years now, provides health services to the residents of Richfield through a contract with the Bloomington Public Health Division. The division also provides a staff liaison to the Richfield Advisory Board of Health. Staff continues to respond to approximately 2,300 complaints/pro-actives a year for environmental health violations while utilizing two part-time staff that job share to conduct case management. The Community Service Officer is the field inspector for environmental health complaints along with conducting other traditional CSO duties of animal control, assisting patrol, errands and minor traffic violations, etc. This position is also part-time. In 2018, the division employed a 19 hour a week Environmental Health Tech for approximately five months during the summer who pro -actively monitored the City for obvious common violations. This helped assist the CSO and gained a handle on conducting even more proactive inspections to ensure quality of life for all residents. 2019 HIGHLIGHTS • A CSO moved to a full-time Community Development position allowing her to remain with the City as her employer of choice. Another CSO made the transition from CSO to Cadet. We've been able to look internally at the Police Explorers for candidates to fill the CSO position. A summer Code Enforcement Tech was hired again to address the top 5 property violations throughout the summer season (May — August). • All city codes relevant to the Support Services division have been identified for updating in the second half of 2019. 2020 DIVISION GOALS On -going work will continue with the completion of standard operating procedural manuals for both Environmental Health and Business Licensing areas. • In keeping with City Council Goal 3 (Equity), staff will continue to participate in GARE work to advance racial equity in the city. DIVISION EXPENDITURE COMMENT The majority of the division's expenditures are employee salaries. Three staff are still stepping in their pay plan while three have reached their maximum salary. Additionally, the public health nursing and food/pool/lodging inspection contracts the City of Richfield has with the City of Bloomington continue to increase annually. The Public Health contract (5% increase) and the Food Inspection contract (3% increase) with the City of Bloomington is due in large part to rising salary/benefit costs. In addition, Richfield, along with the City of Edina recently agreed to a shared services budget increase that will have Richfield paying nearly $139,000 in additional payments over the next three years to cover the city's share of administration, planning and internal service charges that the City of Bloomington has been covering over the last several years. This will be an ongoing charge for the foreseeable future. -72- FUND: GENERALFUND DEPARTMENT: Public Safety BUSINESS UNIT: Support Services - 10300 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 146,587 $ 149,080 $ 149,080 $ 159,720 6006 Part-time 168,311 212,230 189,250 219,370 6007 Seasonal 5,408 8,460 8,460 8,710 6009 Overtime - 500 500 500 6031 Employer Social Security 18,824 21,220 20,340 22,970 6032 Employer Medicare 4,402 4,960 4,760 5,380 6033 Employer Pera 23,197 27,820 25,380 29,100 6035 Medical Insurance 59,058 68,420 63,570 76,380 6036 Dental Insurance 1,428 1,440 1,440 1,440 6037 Term Life 42 80 80 80 6038 Workers Compensation 612 380 380 390 6040 Long Term Disability 296 300 320 330 Personal Services Total $ 428,165 $ 494,890 $ 463,560 $ 524,370 Other Services & Charges 6103 Professional Services -General $ 398,516 $ 408,050 $ 455,330 $ 474,200 6202 Data Processing Rental 34,250 34,860 35,130 35,750 6204 Motor Pool Operating Rental 16,290 17,100 17,100 17,610 6207 Utility Services 10,776 11,120 11,120 11,450 6301 Advertising & Publication 1,023 1,000 1,000 1,000 6302 Communications 1,106 830 1,050 830 6303 Professional Development 230 1,500 1,000 1,000 6305 Subscriptions & Memberships 493 400 400 400 6307 Insurance & Bonds 1,836 1,800 1,930 1,990 6308 Property Liability 650 670 670 690 6315 Other Contractual Services 11,300 750 750 750 6401 Office Supplies 4,005 2,500 2,000 2,000 6402 Copy Charges 640 1,000 800 800 6403 Postage 1,393 1,500 1,500 1,500 6409 Uniforms & Clothing 1,992 1,700 1,700 1,000 6513 Other Charges 1,811 1,700 1,850 1,900 Other Services & Charges Total $ 486,311 $ 486,480 $ 533,330 $ 552,870 Support Services TOTAL $ 914,476 $ 981,370 $ 996,890 $ 1,077,240 -73- FUND: GENERALFUND DEPARTMENT: Public Safety BUSINESS UNIT: Support Services - 10300 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Health Administrator M-1 1.00 1.00 1.00 Code Compliance Officer GS-5 1.00 1.00 1.00 Total 2.00 2.00 2.00 Part -Time Employees Health/Licensing Specialist GS-3 2.00 2.00 2.00 Business Licensing Clerk GS-2 2.00 2.00 2.00 Community Service Officer GS-2 2.00 2.00 2.00 Total 6.00 6.00 6.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -74- POLICE DIVISION MISSION STATEMENT It is the Mission of the Richfield Police Department to safeguard the lives and property of the people we serve, to reduce the incidence and fear of crime, and to enhance public safety while working with the community to improve their quality of life. The men and women of the Richfield Police Department are committed to accomplishing these goals with courage, honor, integrity and hard work. DIVISION FOCUS Our mission statement provides the foundation upon which all operational decisions and organizational policies are based. Under the leadership of the Public Safety Director, the Police Division works tirelessly to accomplish the mission. To effectively achieve these stated goals, the Police Division is divided into three sections: • The Patrol Section consists of the uniformed officers patrolling the streets of Richfield in marked police squads. These officers provide timely 24/7 police coverage to the citizens of Richfield. There are three specialty units embedded in the patrol section or available to assist the patrol section. The specialty units are one canine unit assigned to the patrol section, traffic unit, and the SWAT team. The canine unit enhances officer's ability to locate offenders, persons, contraband and/or property. The traffic unit allows flexibility in enforcement efforts and affords the patrol section the ability to focus on problem traffic areas in the city. Finally, the SWAT team provides the patrol section the ability to respond to high risk incidents that do not fall within the scope of routine policing. • The Investigative Section consists of a promoted detective, Officers assigned to investigation, school liaison officers, and the Special Investigative Unit (SIU). Investigations are responsible for conducting all criminal investigations in the City of Richfield. School liaison officers' work in partnership with school officials and other agencies to build a strong relationship with the youth in the community. The Richfield Special Investigative Unit (SIU) proactively investigates narcotic, vice, and gang related crimes in Richfield. We also have a continued partnership with the Hennepin County Sheriff's Office with the Violent Offender Task Force (VOTF) • The Administrative Section consists of support services, Joint Community Police Partnership unit (JCPP) and the Crime Prevention Unit (CPU). Support services personnel are responsible for administrative and clerical support, planning and research, processing criminal complaints and conducting statistical analyses for the police division. CPU provides citizens with the knowledge necessary to protect their person and property from becoming victimized by crime through community education and prevention programs. 2019 HIGHLIGHTS Community Relations in keeping with Council Goal 5 and 6. • Annual Citizen Police Academy • Nite to Unite • New Americans Academy • Heroes & Helpers • Home Alone Program(s) and Internet Safety for Parents -75- • Numerous Public Safety Announcements (ex. Burglary Prevention) • Police Department FACEBOOK viewership has increased • Unity in the Community Event • Bicycle Program in collaboration with Richfield Schools • Performed over 1700 hours of Community Oriented Policing • 26t" annual Safety Day in collaboration with the Fire Department Personnel: • In keeping with Council Goal 3, Hired 2 new police officers and anticipate hiring an additional two new officers. One of the new officers is a person of color • Hired one of our cadets as an officer. REVISED 2019 BUDGET CHANGES • The revised 2019 budget is lower than the adopted 2019 budget due to some changes in contracts for service and the hiring of newer officers at lower pay scales along with filling promoted ranks at lower pay scales. 2020 POLICE DIVISION GOALS • Enhance police effectiveness with additional technology upgrades and apps. o Deploy "Vitals" app on police cell phones and electronic devices. o Field based reporting by the patrol division. o Use of Force Program dashboards to be placed on website to create transparency. • Continue to seek out grant funding opportunities for new programs/equipment. • In keeping with Council Goal 5, Continue to enhance the partnership between members of the community and the police through proactive programs based on the Community Oriented Policing philosophy. • In keeping with Council Goal 3 and 5, Reduce crime and increase the feeling of safety and security through a partnership between members of the community and the police department. • In keeping with Council Goal 5 and 6, continue with "Coffee with a Cop" and "Cook out with a Cop" to meet with the public on a monthly basis and collaborate on issues or concerns in the community. Develop and Initiate new programs for the community. • In keeping with Council Goal 3, 5, and 6, collaboration with schools for more youth opportunities (ex. Mentoring programs and other outreach programs.) DIVISION EXPENDITURE COMMENT The increases in the Proposed 2020 Budget are due mainly to: • The personal services increases for 2020 reflect collective bargaining agreement step increases. 20 Officers will receive step increases. • Now have to participate in funding of JCCP with Hennepin County. • Increase in professional services due to payments for LOGIS maintenance and software upgrades. • Increase in Health Insurance, Workers Compensation, and PERA. -76- FUND: GENERALFUND DEPARTMENT: Public Safety BUSINESS UNIT: Police Operations - 10305 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 4,121,088 $ 4,601,010 $ 4,623,650 $ 4,679,750 6006 Part-time 180,010 194,030 196,600 194,030 6009 Overtime 149,647 145,000 145,000 150,000 6011 Education Pay 54,438 73,940 70,800 91,920 6031 Employer Social Security 35,381 38,810 39,040 39,160 6032 Employer Medicare 64,618 67,450 67,460 68,460 6033 Employer Pera 676,768 772,850 766,330 811,680 6035 Medical Insurance 647,966 756,920 703,750 755,850 6036 Dental Insurance 34,903 38,000 38,230 37,460 6037 Term Life 1,023 2,120 2,130 2,080 6038 Workers Compensation 139,524 146,870 146,870 151,340 6040 Long Term Disability 8,215 8,080 8,580 8,830 6051 Interdepartmental Labor - 200 200 200 6053 Labor Services Billed 56,459 30,000 38,000 38,000 6054 Interdepartmental Labor Credit (84,245) (96,660) (96,660) (99,560) 6055 Administrative Labor Credit (19,810) (20,410) (20,410) (21,010) 6056 Labor Services Billed Credit (105,013) (60,000) (60,000) (65,000) 6057 Juvenile Investigation Credit (77,498) (79,830) (79,830) (81,430) Personal Services Total $ 5,883,474 $ 6,618,380 $ 6,589,740 $ 6,761,760 Other Services & Charges 6103 Professional Services -General $ 561,410 $ 518,100 $ 495,360 $ 542,910 6201 Rents & Leases 103,487 109,270 108,370 111,640 6202 Data Processing Rental 223,760 229,080 234,100 241,160 6204 Motor Pool Operating Rental 286,440 300,450 300,450 309,460 6205 Maintenance & Repairs 31,826 29,140 49,900 38,900 6207 Utility Services 311,052 320,850 320,850 330,480 6301 Advertising & Publication 107 250 250 250 6302 Communications 3,586 5,800 4,600 5,000 6303 Professional Development 66,926 72,000 78,000 78,000 6305 Subscriptions & Memberships 4,076 5,000 4,800 4,800 6307 Insurance & Bonds 49,282 48,360 51,910 53,470 6308 Property Liability 16,930 17,440 17,440 17,960 6315 Other Contractual Services 1,330 1,100 1,500 1,600 6319 Detention Costs 57,251 63,000 65,000 65,000 6401 Office Supplies 13,672 18,000 16,000 16,000 6402 Copy Charges 284 500 400 400 6403 Postage 1,795 2,100 2,000 2,000 6409 Uniforms & Clothing 53,968 70,000 66,000 66,000 6414 Other Supplies 63,256 69,900 67,310 86,630 Other Services & Charges Total $ 1,850,438 $ 1,880,340 $ 1,884,240 $ 1,971,660 Police Operations TOTAL $ 7,733,912 $ 8,498,720 $ 8,473,980 $ 8,733,420 -77- FUND: GENERALFUND DEPARTMENT: Public Safety BUSINESS UNIT: Police Operations - 10305 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Public Safety Director M-513 1.00 1.00 1.00 Deputy Director M-4 1.00 1.00 1.00 Lieutenant PS-5 3.00 3.00 3.00 Sergeant PS-4 8.00 8.00 8.00 Detective PS-3 1.00 1.00 1.00 Police Officer PS-2 33.00 33.00 33.00 Records Supervisor GS-5E 1.00 1.00 1.00 Civilian Crime Prevention Specialist GS-5E 1.00 1.00 1.00 Police IT Specialist GS-5 .80 .80 .80 Administrative Assistant GS-4SN 1.00 1.00 1.00 Records Technician GS-4 1.00 1.00 1.00 Senior Office Assistant GS-2 2.00 2.00 2.00 Total 53.80 53.80 53.80 Part -Time Employees Senior Office Assistant GS-1 2.00 2.00 2.00 Office Assistant GS-1 2.00 2.00 2.00 Total 4.00 4.00 4.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -78- EMERGENCY SERVICES DIVISION Mission Statement The Richfield Emergency Services Unit's mission is to cooperate with and assist the licensed, sworn officers of the Richfield Police Department, Richfield Fire Department, and Emergency Medical Services by maintaining a state of preparedness for disasters, community events and other emergencies. This is accomplished with professional training standards and the maintenance of emergency plans and an Emergency Operations Center set up by the Richfield Police Department. Division Focus The Richfield Police Reserve Unit The unit is comprised entirely of citizen volunteers and was established to provide assistance to the sworn officers and command staff of the Richfield Police Department. This requires monthly training in specific areas such as patrol tactics, traffic, crowd control, and emergency medical services. The execution of this division focus is accomplished by spending several documented hours in active support of police operations. These programs include but are not limited to: • The 4'" of July event — parade and fireworks • High School sporting events • Race events sponsored by various churches and Woodlake Nature Center • Environmental Home Checks • Vacation Home Checks — proactive measures to deal with burglaries when homeowners are gone • Assist officers with traffic and crowd control at events, emergency call outs for disasters, crime scene protection and Toward Zero Death "TZD" enforcement events. • Provide patrol support during busy evening and weekend hours • Weekly squad maintenance checks • Traffic security during VIP visits • Standing Guard at LEMA site at the State Capital Richfield CERT Program In keeping with Council Goal 5 and 6, the Richfield Community Emergency Response Team (CERT) has over 110 citizen volunteers trained in areas of traffic control, medical triage, fire safety, and emergency sheltering. The program holds two introductory training classes each year for new volunteers. Volunteers who pass the initial training program are formed into teams that train once a month. -79- The program has expanded on a more regional basis to include the Cities of Bloomington, Burnsville, Eden Prairie, St. Louis Park and Minneapolis. This past year CERT held a class for Somalian Students in collaboration with the City of Bloomington. CERT volunteers have been used to assist the city during the following events. • Traffic/Crowd Control at The 4t" of July event- parade and fireworks • Youth CERT presentations at Safety Day • Teen Academies • Promoting CERT and Emergency Preparedness at Nite to Unite • Traffic Control at Urban Half Marathon • Maintenance and command of the Mobile Operations Center (Communications Van) which is utilized as a coordination point and headquarters for major events such as weather disasters, major crime scenes, community events. Over the past seven -years CERT has expanded into the business community as a business CERT model. Teen CERT has also been taught to children in collaboration with Safety Day to better prepare children for natural or man-made disasters. Emeraencv Manaaement Team In keeping with Council Goal 5, the police department works on a quarterly basis with members of the school district and principals from the individual schools on school safety and emergency protocols. Division Expenditure The budget reflects personnel costs for the extra pay the Reserve Coordinator receives. Other costs are for uniforms, supplies, equipment and maintenance necessary for the operation of the Division. There is a large expenditure that occurred in 2018 and 2019 when we replaced the last six of seven warning sirens in the city. The sirens were well over 50 years old and were in need of replacement. The work was completed the spring of 2019 on the new sirens. The sirens will be included in the budget for the next 10 years. -80- FUND: GENERALFUND DEPARTMENT: Public Safety BUSINESS UNIT: Emergency Services - 10315 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6009 Overtime $ 7,350 $ 7,350 $ 7,350 $ 7,350 6038 Workers Compensation 84 90 80 90 Personal Services Total $ 7,434 $ 7,440 $ 71430 $ 7,440 Other Services & Charges 6201 Rents & Leases $ - $ 11,250 $ 11,250 $ 11,250 6204 Motor Pool Operating Rental 2,010 2,120 2,120 2,180 6205 Maintenance & Repairs 4,152 4,150 4,400 4,400 6207 Utility Services 381 400 400 400 6303 Professional Development - 1,150 1,150 1,150 6305 Subscriptions & Memberships - 400 400 400 6308 Property Liability 250 260 260 270 6401 Office Supplies - 20 20 20 6409 Uniforms & Clothing 3,565 5,000 5,000 5,000 6414 Other Supplies 5,130 4,300 4,600 4,600 Other Services & Charges Total $ 15,488 $ 29,050 $ 29,600 $ 29,670 Emergency Services TOTAL $ 22,922 $ 36,490 $ 37,030 $ 37,110 -81- FUND: DEPARTMENT: GENERALFUND Fire DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 (Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10400 Fire $ 4,237,354 $ 4,441,800 $ 4,467,460 $ 4,850,230 9.20% Fire TOTAL $ 4,237,354 $ 4,441,800 $ 4,467,460 $ 4,850,230 9.20% REVENUES 10400 Fire $ 186,836 $ 184,400 $ 208,280 $ 184,000 (0.22%) $5,000,000 E $4,500,000 X p $4,000,000 E $3,500,000 N D $3,000,000 1 $2,500,000 T U $2,000,000 R E $1,500,000 S $1,000,000 $500,000 $0 FIRE EXPENDITURES 2018 2019B 2019R 2020B YEAR -82- FIRE DEPARTMENT MISSION STATEMENT The mission of the Richfield Fire Department (RFD) is to provide outstanding fire and emergency medical response to all. Various services, programs and philosophies help achieve this mission such as: • Provide a rapid response to all types of emergencies with exceptionally trained personnel executing a standard, rapid, effective, safe, managed and caring plan to solve the problem. (Core Services) • Provide a variety of fire prevention, safety education and loss mitigation plans and programs for the Richfield community. (Infrastructure, Community Outreach) • Partner closely with our neighboring fire departments and other emergency response agencies to provide, and utilize, resources efficiently to provide the highest level of service. (Community Outreach) • Department members are empowered to regard everyone as a customer and "to, do the right thing" for our customers, the residents and visitors of Richfield. DIVISION FOCUS Two fire stations are staffed by twenty-four career personnel 24 hours per day operating two fire engines and one rescue response unit. This staffing provides the capability to respond to up to three simultaneous emergencies or to initiate definitive rescue and fire suppression operations at structure fires. The Fire Chief and the Assistant Fire Chief provide daily and long term administrative, operations and fire code/enforcement functions. The department strives to have one or both chief officers available to respond 24/7 to significant incidents to support or assume incident command and to provide city administrative representation. 2019 HIGHLIGHTS • The department continued its investment in Spanish language education with quarterly refresher workshops. (Equity, Community Outreach) • Conducted a Fire Lieutenant promotional process. • Conducted an entry-level Firefighter eligibility process. • Promoted one Fire Captain and one Fire Lieutenant due to retirements. • Transitioned records management system to a new, updated and more functional platform. • Expanded leadership and management training opportunities for staff to increase -83- skill development in anticipation of upcoming officer retirements. • Managed through the impacts resulting from the reconstruction of 66t" Street and Lyndale Ave. • Conducted an unprecedented number of fire plan reviews and inspections due to new development. 2020 DIVISION GOALS • Continue to develop relationships in the health care sector to implement Community EMT services in order to facilitate a healthier community. • Conduct a Fire Captain promotional process. • Implement the position of Fire Battalion Chief which will be responsible for community risk reduction (prevention, community engagement and education) • Continue to develop staff in anticipation of additional officer retirements. DIVISION EXPENDITURE COMMENT The 2019 revised budget shows an increase, from the 2019 adopted budget. This increase is due to Richfield acting as a fiscal agent for a multiagency grant received from the Minnesota Board of Firefighter Training and Education. The expense increase is offset by an equal amount of grant revenue. The 2020 proposed budget reflects an overall increase of 9.20%. This is primarily due to personnel costs with a number of factors coming to bear in 2020: • Six firefighters moving through contractually negotiated wage steps along with one becoming eligible for the first step of longevity pay. • An increase in the employer PERA component of 0.75%. • Adding a Sr. Office Assistant two days per week. Department has had zero administrative support since mid-2018. • Addition of the Battalion Chief position in July, 2020. -84- FUND: GENERALFUND DEPARTMENT: Fire BUSINESS UNIT: Fire - 10400 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 2,299,888 $ 2,420,000 $ 2,420,000 $ 2,680,000 6006 Part-time 14,198 - - - 6009 Overtime 267,443 220,000 219,500 226,600 6013 Longevity 59,213 81,000 81,000 82,000 6031 Employer Social Security 863 - 330 1,100 6032 Employer Medicare 36,987 38,750 39,000 43,280 6033 Employer Pera 417,983 450,000 450,000 515,000 6035 Medical Insurance 353,110 374,950 374,950 417,000 6036 Dental Insurance 18,504 19,500 19,500 21,000 6037 Term Life 542 1,100 1,100 2,100 6038 Workers Compensation 44,328 49,430 49,430 50,910 6040 Long Term Disability 4,609 4,610 4,610 4,750 6051 Interdepartmental Labor 83,330 96,670 96,670 99,560 Personal Services Total $ 3,600,998 $ 3,756,010 $ 3,756,090 $ 4,143.300 Other Services & Charges 6103 Professional Services -General $ 10,969 $ 12,000 $ 11,500 $ 11,250 6201 Rents & Leases 43,190 43,710 43,710 46,020 6202 Data Processing Rental 48,510 49,290 49,670 50,670 6204 Motor Pool Operating Rental 107,010 112,360 112,360 115,730 6205 Maintenance & Repairs 11,365 19,080 19,080 20,500 6207 Utility Services 229,056 236,280 236,280 243,370 6208 800 MHz Charges 25,093 28,500 28,200 28,500 6302 Communications 13,386 19,500 15,000 13,500 6303 Professional Development 25,525 25,750 25,000 29,500 6305 Subscriptions & Memberships 2,656 2,030 2,030 2,300 6307 Insurance & Bonds 24,730 24,270 25,090 25,840 6308 Property Liability 8,240 8,490 8,490 8,750 6315 Other Contractual Services 1,740 4,200 4,000 4,200 6401 Office Supplies 1,486 1,350 1,350 1,500 6402 Copy Charges 774 900 850 850 6403 Postage 73 130 130 500 6409 Uniforms & Clothing 25,899 28,000 28,000 34,000 6412 Maint. & Const. Materials 2,074 4,200 4,000 4,200 6414 Other Supplies 36,890 45,000 75,880 45,000 6523 Public Education Supplies 3,689 3,000 3,000 3,000 6524 EMS Supplies 14,001 17,750 17,750 17,750 Other Services & Charges Total $ 636,356 $ 685,790 $ 711,370 $ 706,930 Fire TOTAL $ 4,237,354 $ 4,441,800 $ 4,467,460 $ 4,850,230 -85- FUND: GENERAL FUND DEPARTMENT: Fire BUSINESS UNIT: Fire - 10400 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Fire Services Director/Fire Chief M-5A 1.00 1.00 1.00 Assistant Chief M-3 1.00 1.00 1.00 Battalion Chief - Fire Prevention M-2 - - 1.00 Fire Captain FS-3 3.00 3.00 3.00 Fire Lieutenant FS-2 3.00 3.00 3.00 Firefighter FS-1 18.00 18.00 18.00 Sr. Office Assistant GS-2 - .40 .40 Total 26.00 26.40 27.40 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -86- THIS PAGE WAS LEFT BLANK INTENTIONALLY -87- FUND: GENERALFUND DEPARTMENT: Community Development DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 (Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10500 Community Development $ 67,543 $ 69,310 $ 70,800 $ 72,900 5.18% 10502 Planning & Zoning 300,603 307,980 310,930 318,560 3.44% 10505 Inspections 1,102,921 1,196,990 1,194,370 1,237,690 3.40% Community Development TOTAL $ 1,471,067 $ 1,574,280 $ 1,576,100 $ 1,629,150 3.49% 10500 Community Development $ 33,270 $ 26,000 $ 20,000 $ 26,000 0.00% 10505 Inspections 1,644,884 1,174,600 2,103,500 1,245,100 6.00% $1,800, 000 E X p $1,500,000 E N $1,200,000 D I T $900,000 u R $600,000 E S $300,000 $0 COMMUNITY DEVELOPMENT EXPENDITURES 2018 2019B 2019R 2020B YEAR D COMMUNITY DEVELOPMENT DEPARTMENT MISSION STATEMENT The mission of the Community Development Department is to ensure and maintain a quality of life that protects the health and safety of residents, visitors, and businesses. The Department works to achieve this by providing responsible, responsive, and professional zoning administration, comprehensive planning, redevelopment services, housing programs, enterprise facilitation, community marketing, and communication initiatives. DEPARTMENT FOCUS The 21 employees of the Community Development Department are committed to professional development, integrity, and service to the community. There are five primary areas of focus within the Department: • Planning and Zoning • Housing and Redevelopment • Inspections • Economic Development • Administrative Support The Community Development Department also serves as staff to the City Council, the Housing and Redevelopment Authority (HRA), the Economic Development Authority (EDA), and the Planning Commission. While the funding for staff salaries and benefits are compiled in this budget, those costs are ultimately reallocated to individual City, HRA, and EDA program/project budgets. All non -personnel costs are included separately in individual City, HRA, and EDA program/project budgets. 2019 highlights and 2020 goals are also provided separately for each individual program/project. The Community Development goals identified by the City Council at its annual goalsetting session relate to activities undertaken by the Richfield Housing and Redevelopment Authority (HRA) and the Richfield Economic Development Authority (EDA). DEPARTMENT EXPENDITURE COMMENT The 2019 Revised Budget represents 2.15% increase from the 2019 Adopted Budget and the 2020 Proposed Budget represents a 5.18% increase over the 2019 Adopted Budget. These increases are due to salary and benefit costs. -89- FUND: GENERALFUND DEPARTMENT: Community Development BUSINESS UNIT: Community Development - 10500 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 6006 Part-time 6031 Employer Social Security 6032 Employer Medicare 6033 Employer Pera 6035 Medical Insurance 6036 Dental Insurance 6037 Term Life 6038 Workers Compensation 6040 Long Term Disability 6051 Interdepartmental Labor 6054 Interdepartmental Labor Credit Personal Services Total $ Other Services & Charges 6103 Professional Services -General $ 6207 Utility Services 6307 Insurance & Bonds 6308 Property Liability Other Services & Charges Total $ Community Development TOTAL $ 665,856 $ 694,150 $ 694,170 $ 733,650 111,210 126,910 131,470 140,360 45,258 47,520 48,400 51,140 10,737 11,570 11,780 12,480 57,329 61,380 61,720 65,350 100,609 112,310 107,140 118,610 5,652 5,740 5,740 5,760 168 320 320 320 456 450 450 390 1,313 1,300 1,380 1,430 91,680 98,200 78,480 68,870 (1,090,268) (1,159,850) (1,141,050) (1,198,360) 388 $ 370 $ 430 $ 430 59,604 61,480 61,480 63,320 6,411 6,290 7,720 7,950 1,140 1,170 1,170 1,200 67,543 $ 69,310 $ 70,800 $ 72,900 67,543 $ 69,310 $ 70,800 $ 72,900 -90- FUND: GENERAL FUND DEPARTMENT: Community Development BUSINESS UNIT: Community Development - 10500 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Community Development Director M-51B 1.00 1.00 1.00 Community Development Asst. Director M-3 1.00 1.00 1.00 Housing Manager M-1 1.00 1.00 1.00 CD Accountant GS-6E 1.00 1.00 1.00 Multi Family Housing Coordinator GS-5E 1.00 - - Multi Family Housing Administrator GS-6E - 1.00 1.00 Associate Planner GS-4 1.00 1.00 - Planner GS-5E - - 1.00 Assistant Planner GS-3 1.00 1.00 1.00 Administrative Assistant GS-4 1.00 1.00 1.00 Total 8.00 8.00 8.00 Part -Time Employees Housing Specialist GS-5 2.00 2.00 2.00 Community Development Technician GS-2 2.00 2.00 2.00 Total 4.00 4.00 4.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - ME PLANNING AND ZONING DIVISION MISSION STATEMENT To provide local land use regulation, policy, and vision information and guidance to residents, local businesses, and developers. To help shape the future of Richfield through development and implementation of long-range plans. DIVISION FOCUS • Long range comprehensive planning for the community. • Shorter range strategy and implementation planning for specific areas. • Administration and enforcement (on a complaint -basis) of the City's Zoning Ordinance, including processing a variety of land use applications. 2019 HIGHLIGHTS • Complete 2040 Comprehensive Plan, addressing items identified through Metropolitan Council review process. • Review and begin Zoning Ordinance amendment process to ensure consistency of regulations with 2040 Comprehensive Plan. • Work with developers to begin/complete approved developments throughout the City (The Chamberlain Apartments, Primrose School, RF64, Lakeside at Lyndale Gardens, The Henley, Novo). • Continue to increase responsibilities of Associate Planner. • Continue Asst. Director/Planning & Redevelopment Manager's participation in Richfield equity work through Richfield CAREs group. • Process land use permits related to new development. • Revise ordinances related to Mixed Use Districts and subdivision and platting regulations. • Secure vehicle and begin pop-up meeting project. 2020 PROGRAM GOALS • To continue to provide excellent customer service to residents and businesses. • To continue to monitor emerging trends and recommend ordinance changes that will keep Richfield competitive (e.g. light industrial, urban agriculture). • Fully establish pop-up meeting program and continue to engage other departments. DIVISION EXPENDITURE COMMENT • No change to the 2019 Revised Planning and Zoning budget is proposed. • The increase in the 2020 proposed budget is primarily related to staff costs (salary step increases and health insurance). The proposed increase is 3.44%. -92- FUND: GENERALFUND DEPARTMENT: Community Development BUSINESS UNIT: Planning & Zoning - 10502 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6051 Interdepartmental Labor $ 246,080 Personal Services Total $ 246,080 Other Services & Charges 6103 Professional Services -General $ 28,646 6202 Data Processing Rental 10,600 6205 Maintenance & Repairs - 6301 Advertising & Publication 4,046 6302 Communications 420 6303 Professional Development 4,246 6305 Subscriptions & Memberships 2,987 6401 Office Supplies 646 6402 Copy Charges 914 6403 Postage 1,961 6409 Uniforms & Clothing - 6414 Other Supplies 57 Other Services & Charges Total $ 54,523 Planning & Zoning TOTAL $ 300,603 $ 258,900 $ 258,900 $ 265,020 $ 19,910 $ 22,760 $ 22,760 10,920 10,920 11,250 180 180 180 3,220 3,220 3,320 420 420 420 4,130 4,130 4,500 3,100 3,100 3,500 1,750 1,750 1,750 1,100 1,100 1,150 3,600 2,000 2,000 - 100 150 750 2,350 2,560 $ 49,080 $ 52,030 $ 53,540 $ 307,980 $ 310,930 $ 318,560 -93- INSPECTIONS DIVISION MISSION STATEMENT To serve the citizens of Richfield by providing inspection services to safeguard life, health, property and public welfare by enforcing the minimum requirements of the Richfield City Code and the Minnesota State Building Code. DIVISION FOCUS • The Division consists of nine employees: Building Official, two Building Inspectors, Plumbing/Mechanical Inspector, two Housing Inspectors, Permit Technician, Housing Inspections Clerk, and Senior Office Assistant. • The Inspections Division administers and enforces City Ordinances relating to Building Code requirements including building, plumbing, heating, ventilation and air conditioning, electrical, sign and driveway installations. • The Division administers a contract with two inspectors to perform electrical inspections. • The Division spends a significant amount of time advising homeowners who are doing their own remodeling or additions. 2019 HIGHLIGHTS • The construction activity in 2019 has almost doubled from 2018 to the highest level in recent history. 2020 INSPECTION DIVISION GOALS • To continue to maintain the quality of homes and buildings within the City by eliminating potential building safety concerns through building inspections and enforcing the Minnesota State Building Code. • Continue a close working relationship with the Fire Department, Support Services Division, Public Safety, Public Works and other departments within the City to effectively implement programs that affect the residents of Richfield. DIVISION EXPENDITURE COMMENT • The 2019 revised budget reflects a .22% decrease from the 2019 adopted budget. The 2020 proposed budget reflects a 3.4% increase over the 2019 adopted budget. -94- FUND: GENERALFUND DEPARTMENT: Community Development BUSINESS UNIT: Inspections - 10505 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time 6009 Overtime 6013 Longevity 6031 Employer Social Security 6032 Employer Medicare 6033 Employer Pera 6035 Medical Insurance 6036 Dental Insurance 6037 Term Life 6038 Workers Compensation 6040 Long Term Disability 6051 Interdepartmental Labor Personal Services Total Other Services & Charges 6103 Professional Services -General 6202 Data Processing Rental 6204 Motor Pool Operating Rental 6207 Utility Services 6301 Advertising & Publication 6302 Communications 6303 Professional Development 6305 Subscriptions & Memberships 6307 Insurance & Bonds 6308 Property Liability 6401 Office Supplies 6402 Copy Charges 6403 Postage 6409 Uniforms & Clothing 6414 Other Supplies 6513 Other Charges 6523 Public Education Supplies Other Services & Charges Total $ 637,933 $ 693,520 $ 696,590 $ 710,190 2,779 6,000 10,000 10,000 2,144 2,210 2,290 2,390 38,125 41,900 42,130 43,140 8,916 9,800 9,850 10,230 47,081 51,600 51,370 53,440 98,511 119,120 99,280 110,410 5,890 6,450 6,370 6,480 177 360 360 360 6,312 7,430 7,430 7,190 1,273 2,350 1,380 1,420 33,504 33,950 33,950 37,570 $ 882,645 $ 974,690 $ 961,000 $ 992,820 $ 95,728 $ 98,190 $ 102,730 $ 114,100 37,180 37,780 38,110 38,860 11,500 14,600 14,600 15,040 22,572 23,280 23,280 23,980 - 200 200 200 5,322 3,660 3,660 3,800 4,536 6,800 6,800 7,000 705 600 600 620 7,324 7,190 8,670 8,940 2,010 2,070 2,070 2,130 5,476 4,750 5,600 5,800 956 2,580 1,000 1,000 2,544 3,000 3,000 3,000 209 750 1,000 1,100 4,422 3,850 8,550 4,800 19,792 13,000 13,000 14,000 - - 500 500 t 070 07F t 777 Aon (z J 2Z 27n it ')AA P70 Inspections TOTAL $ 1,102,921 $ 1,196,990 $ 1,194,370 $ 1,237,690 -95- FUND: GENERAL FUND DEPARTMENT: Community Development BUSINESS UNIT: Inspections - 10505 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Chief Building Official M-2 1.00 1.00 1.00 Trade/Building Inspector GS-6 5.00 5.00 5.00 Permit Technician GS-3 1.00 1.00 1.00 Housing Inspections Clerk GS-3 1.00 1.00 1.00 Senior Office Assistant GS-2 1.00 1.00 1.00 Total 9.00 9.00 9.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - SON THIS PAGE WAS LEFT BLANK INTENTIONALLY -97- FUND: GENERALFUND DEPARTMENT: Public Works DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 10600 PW Administration $ 179,744 $ 188,970 $ 185,220 $ 190,700 0.92% 10605 Engineering 340,546 336,820 245,230 278,560 (17.30%) 10610 Street Maintenance 2,263,665 2,335,600 2,332,560 2,393,320 2.47% 10615 Park Maintenance 1,291,294 1,325,750 1,343,430 1,437,230 8.41 % Public Works TOTAL $ 4,075,249 $ 4,187,140 $ 4,106,440 $ 4,299,810 2.69% REVENUES 10605 Engineering 10610 Street Maintenance $4,500,000 E $4,000,000 X p $3,500,000 E $3,000,000 N D $2,500,000 T $2,000,000 U $1,500,000 R E $1,000,000 S $500,000 $0 $ 20,502 $ 14,000 $ 11,500 $ 625,480 615,000 615,000 PUBLIC WORKS EXPENDITURES 2018 2019B 2019R 2020B YEARS 11,500 (17.86%) 615,000 0.00% -98- PUBLIC WORKS ADMINISTRATION DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS The Public Works Administration Division is responsible for overseeing delivery of public capital improvement projects, ongoing maintenance and operations of the Public Works divisions, and staying aware of and contributing to the regional discussions surrounding emerging public works issues (i.e., State and Interstate Highways around Richfield; storm water quality management; water supply; environmental issues; and public education and engagement.) 2019 HIGHLIGHTS • Began to implement "smart city" initiatives, including but not limited to smart compacting garbage receptacles, the incorporation of 4 hybrid electric vehicles into the fleet, and solar panels on City buildings (City Council Goals 1 & 6). • Managed social media communications and public outreach for street reconstruction projects and projects in design (City Council Goals 1, 5 & 6). • Began review of ordinances pertaining to the Public Works Department and updated as needed with consideration of equity and core services (City Council Goals 3 & 6). Developed a K-12 "What is Public Works?" educational campaign that can be utilized by local schools and community leaders (City Council Goal 5). • Utilized Public Work's outreach mediums/social media outlets to promote the water meter replacement project in addition to the "WaterSmart" utility software roll -out (City Council Goals 1, 5, & 6). • Worked with the University of Minnesota's Resilient Communities Project to develop a comprehensive Emerald Ash Borer Public Outreach Campaign (City Council Goals 5 & 6). 2020 DIVISION GOALS • Continue review of ordinances pertaining to the Public Works Department and update as needed with consideration of equity (City Council Goals 3 & 6). • Develop and implement a "Public Art Policy" to guide arts investments on city property (City Council Goals 1 & 6). • Continue to utilize Public Work's outreach mediums/social media outlets to promote the water meter replacement project in addition to the "WaterSmart" utility software roll -out (City Council Goals 1, 5, & 6). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget has a 1.98% decrease from the 2019 Adopted Budget. The 2020 Proposed Budget reflects a .92% increase from the 2019 Adopted Budget due to Personnel Services. -99- FUND: GENERALFUND DEPARTMENT: Public Works BUSINESS UNIT: PW Administration - 10600 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 211,089 6031 Employer Social Security 11,979 6032 Employer Medicare 2,987 6033 Employer Pera 15,470 6035 Medical Insurance 23,860 6036 Dental Insurance 1,368 6037 Term Life 40 6038 Workers Compensation 132 6040 Long Term Disability 371 6054 Interdepartmental Labor Credit (119,000) Personal Services Total $ 148,296 Other Services & Charges 6103 Professional Services -General $ 3,244 6202 Data Processing Rental 10,600 6302 Communications 2,428 6303 Professional Development 5,478 6305 Subscriptions & Memberships 804 6307 Insurance & Bonds 1,836 6308 Property Liability 650 6401 Office Supplies 1,777 6402 Copy Charges 2,059 6403 Postage 137 6414 Other Supplies 2,435 Other Services & Charges Total $ 31,448 PIN Administration TOTAL $ 179,744 $ 217,780 $ 215,150 $ 224,890 12,210 10,830 11,160 3,080 3,110 3,250 16,130 15,930 16,670 24,530 24,840 26,990 1,460 1,440 1,440 80 80 80 120 120 120 390 390 400 /447')nn\ /44n 4nn\ I An nnn\ $ 12,110 $ 10,000 $ 10,000 10,920 11,170 11,690 1,300 2,500 2,500 6,760 6,750 7,300 810 810 930 1,800 1,930 1,990 670 670 690 4,710 5,000 5,000 1,520 2,250 2,250 1,940 500 500 1) ocn 1) ccn 1) ocn $ 188,970 $ 185,220 $ 190,700 -100- FUND: GENERAL FUND DEPARTMENT: Public Works BUSINESS UNIT: PW Administration - 10600 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ PW Director/City Engineer M-513 1.00 1.00 1.00 Administrative Aide/Analyst GS-5E 1.00 1.00 1.00 Total 2.00 2.00 2.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - MUSE ENGINEERING DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To provide planning, design, and construction management support for Public Works operations, construction, and maintenance projects. Conducting plan reviews for permits and developers with a focus on protecting the City's interest in the public rights - of -way. Specifically, to: • Maintain record drawings of the City's existing infrastructure and provide guidance to any proposed changes that would impact that infrastructure. • Develop and administer the department's Sweet Streets® capital improvement and maintenance projects and Hennepin County's reconstruction of their arterials through the City. • Represent Richfield's interests in regional transportation planning and construction projects. • Manage storm water related issues within the City including: o Review of redevelopment plans for storm water regulation compliance and permitting; o Coordination of the Storm Water Pollution Prevention Program; o Lead the Minnesota Pollution Control Agency permitting and annual reporting process for the City; and o Follow and track changes in the regulations of storm water that impact the City. • Provide technical support to other divisions. • Provide Staff support for the Transportation Commission. 2019 HIGHLIGHTS • Completed 66t" Street Reconstruction and the streetscape elements (City Council Goal 1). • Administered concrete and mill & overlay contracts for City's Sweet Streets -102- Program, completing year five of the 6-Year Mill and Overlay Project (City Council Goal 1). • Administered the second year of reclamite application on mill & overlay areas in an effort to extend the life of the new pavement and preserve the major investment made in City streets (City Council Goal 1 & 6). • Reached substantial completion on the Lyndale Avenue Reconstruction Project (City Council Goal 1). • Coordinated completion of South Richfield Parkway (City Council Goal 1). • Continue to address roadblocks for pedestrians and bicyclists by engaging with the public to understand where opportunities exist (City Council Goal 1, 3, & 6). 2020 DIVISION GOALS • Coordinate with Metro Transit on Orange Line construction and D Line Planning/Design (City Council Goals 1 & 3). • Continue to encourage Hennepin County to program full reconstruction of Nicollet and Penn Avenues (City Council Goals 1 & 2). • Complete the funding package for the 77t" Underpass and have the project authorized for construction in 2020 (City Council Goals 1, 2 & 3). • Continue to coordinate with MnDOT and represent Richfield's interests related to the future 1-494 corridor improvements (City Council Goals 1 & 2). • Continue to address roadblocks for pedestrians and bicyclists by engaging with the public to understand where opportunities exist (City Council Goal 1, 3, & 6). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects a 27.19% reduction in expenditures from the 2019 Adopted Budget primarily due to vacancies in personnel. The 2020 Proposed Budget reflects a 17.3% decrease in expenditures from the 2019 Adopted Budget due to staffing changes in the division. This results from the elimination of the two Civil Engineer positions and one City Engineer position and the creation of a Project Engineer position in 2019 and Assistant Engineer Position in 2020 resulting a net decrease of 1.0 FTE for the division. - 103 - FUND: GENERALFUND DEPARTMENT: Public Works BUSINESS UNIT: Engineering - 10605 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 443,125 $ 496,060 $ 363,750 $ 395,430 6009 Overtime 1,794 2,400 2,400 2,400 6031 Employer Social Security 26,813 30,660 22,460 24,520 6032 Employer Medicare 6,281 7,170 5,250 5,730 6033 Employer Pera 32,986 37,210 27,280 29,660 6035 Medical Insurance 51,466 68,600 49,710 54,690 6036 Dental Insurance 3,986 4,310 3,340 3,490 6037 Term Life 117 240 190 190 6038 Workers Compensation 5,520 7,480 7,480 7,170 6040 Long Term Disability 861 1,040 950 980 6054 Interdepartmental Labor Credit (325,883) (425,000) (345,000) (355,000) Personal Services Total $ 247,066 $ 230,170 $ 137,810 $ 169,260 Other Services & Charges 6103 Professional Services -General $ 24,702 $ 25,000 $ 25,220 $ 25,220 6202 Data Processing Rental 46,840 48,150 48,570 49,500 6204 Motor Pool Operating Rental 4,250 9,790 9,790 9,790 6301 Advertising & Publication 202 - - - 6302 Communications 6,400 4,500 6,500 6,500 6303 Professional Development 4,043 11,000 8,600 9,200 6305 Subscriptions & Memberships 495 1,230 1,500 1,700 6307 Insurance & Bonds 3,662 3,600 3,860 3,980 6308 Property Liability 850 880 880 910 6414 Other Supplies 2,036 2,500 2,500 2,500 Other Services & Charges Total $ 93,480 $ 106,650 $ 107,420 $ 109,300 Engineering TOTAL $ 340,546 $ 336,820 $ 245,230 $ 278,560 -104- FUND: GENERAL FUND DEPARTMENT: Public Works BUSINESS UNIT: Engineering - 10605 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ City Engineer M-3 1.00 - - Transportation Engineer M-2 1.00 1.00 1.00 Assistant City Engineer M-2 - - 1.00 Project Engineer M-1 - 1.00 1.00 Engineer Assistant GS-4 1.00 1.00 1.00 Water Resources Specialist GS-4 1.00 1.00 1.00 Total 4.00 4.00 5.00 Protect Full -Time Employees Civil Engineer GS-6 2.00 - - Total 2.00 - - CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - 105 - STREET MAINTENANCE DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To provide pavement management, street signage, signal lights, streetlights, asphalt patching, ice control, and snow removal. These programs are necessary to ensure the citizens of Richfield have a safe, efficient, and reliable transportation system. The Street Maintenance Division also protects Richfield's urban forest and existing tree canopy through tree inspections, monitoring both public and private trees, tree removal, trimming, and replacing trees on the boulevard as they are removed. 2019 HIGHLIGHTS • Completed the fifth year of the six year Mill and Overlay Project (City Council Goal 1). • Continued assistance with private property diseased/hazardous tree removals using the assessment option for paying removal costs (City Council Goals 3 & 5). • Started an EAB outreach plan for property owners to address trees on their property (City Council Goal 5). 2020 DIVISION GOALS • Create an inventory of pavement markings to establish a replacement program (City Council Goal 3). • Continue the Emerald Ash Borer (EAB) injection program to preserve the health of the City's trees (City Council Goals 1 & 6). • Finalize long-term street maintenance plan including additional mill and overlay for residential streets (City Council Goal 1). • Initiate system -wide change out of streetlights from High Pressure Sodium bulbs to LED (City Council Goals 1, 5 & 6) DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects a .13% decrease from the 2019 Adopted Budget. Budget line items for Salt (6411) and Overtime (6009) have adjusted upwards due to heavy snowfall in February and March but were offset for 2019 by decreased actual personnel costs in 2019. The 2020 Proposed Budget reflects a 2.47% increase from the 2019 Adopted Budget. The increases are to account for increased personnel costs. WI. FUND: GENERALFUND DEPARTMENT: Public Works BUSINESS UNIT: Street Maintenance - 10610 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 859,331 6007 Seasonal 24,829 6009 Overtime 36,388 6031 Employer Social Security 55,083 6032 Employer Medicare 12,882 6033 Employer Pera 65,867 6035 Medical Insurance 146,879 6036 Dental Insurance 9,038 6037 Term Life 267 6038 Workers Compensation 31,512 6040 Long Term Disability 1,841 6054 Interdepartmental Labor Credit (61,252) Personal Services Total $ 1,182,665 Other Services & Charges 6103 Professional Services -General $ 12,848 6202 Data Processing Rental 6,567 6204 Motor Pool Operating Rental 363,910 6205 Maintenance & Repairs 19,511 6207 Utility Services 269,710 6209 Utility Lighting 47,312 6301 Advertising & Publication 855 6302 Communications 7,012 6303 Professional Development 7,917 6305 Subscriptions & Memberships 506 6307 Insurance & Bonds 12,003 6308 Property Liability 2,990 6315 Other Contractual Services 112,944 6409 Uniforms & Clothing 9,285 6410 Small Tools & Parts 5,483 6411 Salt 118,855 6412 Maint. & Const. Materials 33,418 6414 Other Supplies 13,561 6415 Sign Parts & Supplies 13,200 Other Services & Charges Total $ 1,057,887 Capital Outlay 7700 Office Equipment $ 23,113 Capital Outlay Total $ 23,113 Street Maintenance TOTAL $ 2,263,665 908,050 39,460 15,000 57,750 13,510 70,180 166,580 9,710 540 38,860 1,900 17Q QQn\ 887,120 44,720 36,000 57,340 13,410 66,380 146,500 9,640 540 38,860 2,030 170 *100% 935,060 47,410 23,000 60,390 14,120 69,980 159,950 9,580 530 38,360 2,080 17Q'1QAN 1 ,24J, "I bU 1 ,224,1 bU 1 ,262,Ubu $ 9,790 $ 9,750 $ 9,750 8,980 6,960 7,540 378,780 378,780 390,140 25,600 11,500 11,500 264,000 264,000 264,000 62,060 61,040 60,200 240 240 240 4,500 4,500 4,500 13,760 5,560 11,360 180 400 400 11,780 12,980 13,370 3,080 3,080 3,170 145,000 186,150 183,570 11,000 11,000 11,000 6,200 6,200 6,200 85,000 93,360 85,000 42,840 32,650 31,150 3,000 3,000 3,000 16,650 17,250 15,150 $ 1,092,440 $ 1,108,400 $ 1,111,240 - 4i - $ - $ 2,335,600 $ 2,332,560 $ 2,393,320 -107- FUND: GENERAL FUND DEPARTMENT: Public Works BUSINESS UNIT: Street Maintenance - 10610 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Operations Superintendent M-3 .80 .75 .75 Operations Supervisor M-1 1.00 1.00 1.00 GIS Analyst/IT Technician GS-5 .30 .30 .20 Forester GS-4 1.00 1.00 1.00 Senior Office Assistant GS-2 .35 .35 .35 Public Works Worker LT-1 10.00 10.00 10.00 Total 13.45 13.40 13.30 ITEMS None Total CAPITAL OUTLAY 2019 2019 2020 ADOPTED REVISED BUDGET ., - T - Z� - 108 - PARK MAINTENANCE DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To maintain and repair Richfield's 21 park areas that provide space and facilities for leisure activities. These areas vary in size from one -quarter acre (Little Bob's Park) to over 100 acres (Veterans Memorial Park). The Park Maintenance Division is responsible for maintaining and repairing: • Buildings • Play features • Tennis/Pickleball courts • Ballfields • Turf areas • Trash pick-up and disposal • Winter maintenance of sidewalks/trails The Park Maintenance Division also manages the maintenance of the LHN and 77tn Street Maintenance Districts. 2019 HIGHLIGHTS • Added plantings, both annual and perennial, to minimal mowing areas (City Council Goal 6). • Installed the remainder of the new park signs (City Council Goal 6). • Introduced expanded recycling efforts in City parks (City Council Goal 6). • Enhanced sidewalk/trail snow removal program (City Council Goals 3 & 5). 2020 DIVISION GOALS • Install additional solar trail lighting at various parks (City Council Goal 1). • Continue support of City -sponsored events such as 4t" of July Celebration and "Penn Fest" at Open Streets (City Council Goal 6). • Continue to identify park areas to enhance with ornamental/edible plantings (City Council Goal 6). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects a 1.33% increase from the 2019 Adopted Budget. The 2020 Proposed budget reflects an 8.41 % increase from the 2019 Adopted Budget. These increases are due to the addition of a new Public Works Worker to the Division in late summer 2019. Enhanced maintenance to street medians and winter sidewalk clearing are major factors why the position is being added. The costs associated with this position will be offset through a reduction in the Public Works Engineering Budget. Miff FUND: GENERALFUND DEPARTMENT: Public Works BUSINESS UNIT: Park Maintenance - 10615 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 467,722 6007 Seasonal 41,821 6009 Overtime 22,667 6013 Longevity 1,096 6031 Employer Social Security 32,445 6032 Employer Medicare 7,588 6033 Employer Pera 36,987 6035 Medical Insurance 71,510 6036 Dental Insurance 5,370 6037 Term Life 156 6038 Workers Compensation 33,780 6040 Long Term Disability 846 6054 Interdepartmental Labor Credit (28,438) Personal Services Total $ 693,550 Other Services & Charges 6103 Professional Services -General $ 6,004 6202 Data Processing Rental 3,780 6204 Motor Pool Operating Rental 189,500 6205 Maintenance & Repairs 105,588 6207 Utility Services 112,195 6302 Communications 6,824 6303 Professional Development 6,548 6305 Subscriptions & Memberships - 6307 Insurance & Bonds 44,938 6308 Property Liability 3,290 6310 Taxes & Licenses 110 6315 Other Contractual Services 62,326 6409 Uniforms & Clothing 3,657 6410 Small Tools & Parts 2,360 6412 Maint. & Const. Materials 3,607 6414 Other Supplies 27,817 Other Services & Charges Total $ 578,544 Capital Outlay 7350 Other Improvements $ 19,200 Capital Outlay Total $ 19,200 Park Maintenance TOTAL $ 1,291,294 $ 490,010 $ 498,010 45,580 43,410 13,870 23,000 1,130 1,100 32,920 33,400 7,700 7,810 36,690 37,440 75,440 75,400 5,380 5,580 300 310 39,390 29,390 840 870 IQA 77M /QA 77n\ 558,180 45,600 23,000 1,130 37,220 8,710 41,950 91,120 6,120 340 13,700 900 IQA 77M $ 6,600 $ 3,920 $ 3,920 3,890 4,030 4,360 198,980 198,980 204,950 120,300 120,300 120,300 102,920 102,920 111,290 4,850 6,700 7,150 8,610 4,790 7,260 100 100 100 44,110 45,130 46,490 3,390 3,390 3,490 200 200 200 53,550 64,250 68,750 4,790 4,790 4,790 3,300 3,300 3,300 10,000 10,000 10,000 45,680 49,680 47,680 $ 611,270 $ 622,480 $ 644,030 $ 1,325,750 $ 1,343,430 $ 1,437,230 MEME FUND: GENERAL FUND DEPARTMENT: Public Works BUSINESS UNIT: Park Maintenance - 10615 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Operations Manager M-2 .50 .50 .50 Public Works Worker LT-1 7.00 8.00 8.00 Total 7.50 8.50 8.50 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - mmm THIS PAGE WAS LEFT BLANK INTENTIONALLY - 113 - FUND: GENERALFUND DEPARTMENT: Recreation Services DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 (Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 17000 Recreation Administration $ 386,198 $ 375,590 $ 353,290 $ 361,800 (3.67%) 17501 Recreation 955,276 1,038,020 1,038,370 1,085,640 4.59% 18000 Wood Lake Nature Center 555,045 554,460 579,900 582,380 5.04% Recreation Services TOTAL $ 1,896,519 $ 1,968,070 $ 1,971,560 $ 2,029,820 3.14% REVENUES 17501 Recreation $ 370,475 $ 354,820 $ 349,840 $ 342,190 (3.56%) 18000 Wood Lake Nature Center 92,758 90,050 91,730 92,060 2.23% $2,100,000 E X $1,800,000 P E $1,500,000 N D $1,200,000 1 T $900,000 U R $600,000 E S $300,000 $0 RECREATION SERVICES EXPENDITURES 2018 2019B 2019R 2020B YEAR l:EM RECREATION SERVICES ADMINISTRATION MISSION STATEMENT The mission of the Recreation Services Department is to provide residents with quality recreational services reflecting Richfield's high service standards. DIVISION FOCUS The Recreation Services Administration Division provides support for the Recreation Services Department including Wood Lake Nature Center, Recreation Programs and Athletics, Ice Arena, Outdoor Pool, and Mini -Golf. The Administrative Division also contains items related to parks planning and development. • Facilitate strategic planning of the City's parks system and recreational programming and oversee all park capital projects. • Provide support for the Community Services Commission, Arts Commission, Friendship City Commission and other planning groups. • Provide registration software, online services and other technological support to the Recreation Services Department. • Coordinate Department program guide and other publications and maintain Department web pages. • Administer engraving activity and communications for the Honoring All Veterans Memorial, Adopt a Park, Adopt a Tree and other park donations. • Coordinates the MN GreenStep Cities Program for the City. 2019 HIGHLIGHTS • Established a fund for public art. (Council Goals 3,5, 6) • Launched operation of the band shell. (Council Goal 1) • Passed the organization of recycling and organics curbside hauling (Council Goals 1, 6) • Passed the approval to hire a Sustainability Coordinator position. • Established a citizen -based organics taskforce to plan and launched two organics drop-off sites. (Council Goals 1, 5, 6) 2020 DIVISION GOALS • Consider the establishment of a park dedication ordinance (Council Goal 1). • Establish quarterly department meetings/training. • Continue to gather community and financial support for an all-inclusive playground in Augsburg Park (Council Goal 1). • Increase ADA efforts with facilities, programming, and events. (Council Goals 3, 6) • Develop plans for capital projects including: costs, schematic drawings, and a variety of engagement offerings. • Recruit a new Community Center Senior Office Aide after Deb's retirement. DIVISION EXPENDITURE COMMENTS • The Recreation Services/Administration Division shows a 5.94% decrease in expenditures for the 2019 revised budget, mainly because of a new Recreation Services Director with a starting salary lower on the pay range than the previous director. The 2020 expenditure budget shows a 3.67% decrease over the 2019 adopted budget; due to savings with personnel costs. -115- FUND: GENERALFUND DEPARTMENT: Recreation Services BUSINESS UNIT: Recreation Administration - 17000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 218,244 $ 222,330 $ 189,020 $ 196,900 6031 Employer Social Security 12,675 11,000 11,090 11,230 6032 Employer Medicare 3,085 2,980 2,590 2,690 6033 Employer Pera 15,495 15,950 13,790 14,330 6035 Medical Insurance 34,536 31,320 30,980 33,370 6036 Dental Insurance 1,428 1,440 1,440 1,440 6037 Term Life 40 80 80 80 6038 Workers Compensation 3,780 2,720 2,720 2,500 6040 Long Term Disability 395 400 400 410 6051 Interdepartmental Labor 2,223 - 2,200 2,200 Personal Services Total $ 291,901 $ 288,220 $ 254,310 $ 265,150 Other Services & Charges 6103 Professional Services -General $ 424 $ 500 $ 5,000 $ 1,500 6202 Data Processing Rental 14,925 15,190 15,330 15,630 6207 Utility Services 1,331 1,800 1,500 1,500 6301 Advertising & Publication 29,574 25,000 29,000 29,000 6302 Communications 803 - 500 500 6303 Professional Development 957 1,500 1,500 1,500 6305 Subscriptions & Memberships 336 350 350 350 6307 Insurance & Bonds 4,669 4,590 4,760 4,900 6308 Property Liability 7,320 7,540 7,540 7,770 6402 Copy Charges 7,048 9,400 9,000 9,000 6513 Other Charges 26,910 21,500 24,500 25,000 Other Services & Charges Total $ 94,297 $ 87,370 $ 98,980 $ 96,650 Recreation Administration TOTAL $ 386,198 $ 375,590 $ 353,290 $ 361,800 -116- FUND: GENERAL FUND DEPARTMENT: Recreation Services BUSINESS UNIT: Recreation Administration - 17000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Recreation Services Director M-5A 1.00 1.00 1.00 Recreation Specialist GS-5 1.00 1.00 1.00 Total 2.00 2.00 2.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - MEM RECREATION PROGRAMS MISSION STATEMENT The mission of the Recreation Programs Division is to provide high -quality programs, services, and facilities that enhance the physical, emotional and mental well being of our diverse population. DIVISION FOCUS The Recreation Programs Division provides high -quality programs, activities and special events throughout the year to the entire community. The division is the conduit to find ways to ensure inclusion of all people, especially people with physical and economic challenges and people of color. The incorporation of these services includes programs and services for youth through seniors/mature adults. The Division also coordinates scheduling of athletic and park facilities for Richfield youth and adult recreational sports associations, schools and other groups. 2019 HIGHLIGHTS • Introduced Amazing Athletes, a sports -focused program for youth ages 18 months to five years, with great success. (Council Goals 5, 6) • Conducted a successful eighth -annual Open Streets at Penn Fest event and recruited new entertainment options for the event, including logrolling and an entertainment stage. (Council Goal 5) • Launched the operation of the Richfield Community Band Shell (Council Goal 1). • The Farmers Market was able to find a local sponsor to implement a new program called the POP Club at the market. The Power of Produce (POP) Club provides a fun opportunity for children to engage in the local food system through conversations directly with farmers, educational games and demonstrations, and exposure to new fruits and vegetables. • The Farmers Market expanded their season and offered seven Winter Farmers Market events that featured local produce, hot food and artists. • A projected 1,000 meals will be served in 2019 to youth ages 18 and younger through the free Summer Food Services Program. (Council Goals 3, 5, 6) • Coordinated a city-wide 4t" of July event with the 4t" of July Committee. • More than 29,000 individual program participation/registrations projected in 2019. (Council Goal 6) • Registrations for reduced -cost youth sports camps have continued to climb year after year. We have been able to find new partners which have allowed us to continue to offer more camp and a wider and variety of activities. (Council Goals 3, 5,6) 2020 GOALS • Increased outreach to underserved populations in our community to increase recreation participation. (Council Goals 3, 5, 6) • Continue expanding the Free Summer Playground and Food Services Programs. (Council Goals 3, 5, 6) -118- Expand senior programming and increase facility use at the Community Center. Establish a spring/summer Recreation Intern program to expand current offerings and increase service levels of current programs. The City of Richfield is a part of the Richfield Dementia Friends committee and is working to have an online resources guide by 2020 for residents. The resource guide is part of an effort to help those living with or caring for someone with Dementia or memory loss. This is part of the mission of the Richfield Dementia Friends to become a dementia -friendly -community. DIVISION REVENUE COMMENT Revenue was reduced by $17,000 from the adopted budget. Adult softball participation fell 26% last year and is expected to fall another 17%, a trend experienced statewide and throughout the industry. DIVISION EXPENDITURE COMMENT Expenditures in the 2019 revised budget will stay approximately the same from the 2019 adopted budget ($380 increase) and will increase in 2020 by $50,000. The increase in 2020 is due, primarily, to increases in personal services (salary step increases and the addition of an intern to the division). FUND: GENERALFUND DEPARTMENT: Recreation Services BUSINESS UNIT: Recreation - 17501 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 275,891 $ 285,120 $ 286,660 $ 300,040 6006 Part-time 118,884 130,030 132,470 138,980 6007 Seasonal 87,814 107,730 102,530 119,670 6031 Employer Social Security 28,721 32,050 32,310 34,640 6032 Employer Medicare 6,717 7,510 7,560 8,100 6033 Employer Pera 32,141 31,050 31,440 32,920 6035 Medical Insurance 60,096 58,680 61,020 67,850 6036 Dental Insurance 2,856 2,870 2,870 2,880 6037 Term Life 84 170 170 170 6038 Workers Compensation 11,040 8,430 8,430 7,940 6040 Long Term Disability 575 580 600 620 Personal Services Total $ 624,819 $ 664,220 $ 666,060 $ 713,810 Other Services & Charges 6103 Professional Services -General $ 220 $ 210 $ 220 $ 220 6201 Rents & Leases 1,354 4,300 4,300 4,300 6202 Data Processing Rental 25,153 26,690 27,070 27,970 6204 Motor Pool Operating Rental - - 1,000 1,030 6205 Maintenance & Repairs 20,258 17,400 17,400 17,930 6207 Utility Services 15,901 17,000 17,000 17,000 6301 Advertising & Publication 2,887 4,200 4,200 4,200 6302 Communications 4,633 5,000 5,000 5,000 6303 Professional Development 3,427 4,600 4,000 4,000 6305 Subscriptions & Memberships 2,165 2,200 2,200 2,300 6307 Insurance & Bonds 3,662 3,600 3,860 3,980 6308 Property Liability 120 120 120 120 6315 Other Contractual Services 109,525 131,220 123,760 126,210 6401 Office Supplies 4,869 4,500 5,000 5,000 6403 Postage 1,731 2,500 2,500 2,500 6414 Other Supplies 129,517 141,760 140,380 143,770 6513 Other Charges 5,035 8,500 14,300 6,300 Other Services & Charges Total $ 330,457 $ 373,800 $ 372,310 $ 371,830 Recreation TOTAL $ 955,276 $ 1,038,020 $ 1,038,370 $ 1,085,640 -120- FUND: GENERAL FUND DEPARTMENT: Recreation Services BUSINESS UNIT: Recreation - 17501 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Recreation Supervisor GS-5E 3.00 3.00 3.00 Senior Office Aide GS-2 1.00 1.00 1.00 Total 4.00 4.00 4.00 Part -Time Employees Recreation Supervisor GS-5 1.00 1.00 1.00 Custodian GS-2 2.00 2.00 2.00 Total 3.00 3.00 3.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - ENE WOOD LAKE NATURE CENTER MISSION STATEMENT Wood Lake Nature Center, part of the Recreation Services Department, exists to enhance the quality of life in Richfield by providing the highest -quality, community - based nature experience while serving the widest possible audiences. 2019 HIGHLIGHTS • Conducted a very successful FOWL dinner in April at the Minnesota Valley Country Club. • Removed old boardwalk destroyed in storm with insurance funds and put in new Lagoon boardwalk in the Marlene Glaus amphitheater area (Council Goal 1) • Built a new raised -bed children's garden with donated funds. • Worked with Greencorps member Rachel Lindholm and created an organics drop off program for Richfield. • Welcomed new full time naturalist staff person, Brianna Rogers, to replace Amy Markle's position. • Conducted a successful 17th-annual Urban Wildland Half Marathon and 5K with new sponsorships. 2020 DIVISION GOALS • Welcome and orient a new Manager to Wood Lake • Work to implement a curbside recycling and organics program for Richfield residents (Council Goal 6). • Develop a plan for the construction of a new nature center building. (Council Goal 1). • Build the Friends of Wood Lake Board to include more members that can provide more support. • Build a new floating boardwalk working through our insurance claim with the League of Minnesota Cities (Council Goal 1). DIVISION EXPENDITURE COMMENT For the final four months of 2019 and all of 2020, Wood Lake is budgeting for the addition of a Sustainability Specialist, which will be partially funded by an increase in funds from Hennepin County. The additional expense of this position is also offset by the hiring of a new naturalist in 2019 at a lower pay step, and in 2020 with the hiring of a new manager starting at the lower end of the range. Also, there is an increase in contractual services in order to add a much -needed cleaning service for the building. The net increase in expenditures is $25,750 for 2019, and $28,130 for 2020. DIVISION REVENUE COMMENT No new events are planned and public programs have continued to decrease in attendance, therefore the revenue is forecasted to remain steady. -122- FUND: GENERALFUND DEPARTMENT: Recreation Services BUSINESS UNIT: Wood Lake Nature Center - 18000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 372,173 $ 376,190 $ 389,880 $ 425,540 6007 Seasonal 43,629 45,820 47,540 50,060 6013 Longevity 1,893 1,950 1,960 - 6031 Employer Social Security 25,053 26,100 25,650 25,080 6032 Employer Medicare 5,859 6,100 6,000 5,870 6033 Employer Pera 28,874 30,380 29,630 28,750 6035 Medical Insurance 46,371 46,540 45,190 45,180 6036 Dental Insurance 2,856 2,870 2,870 2,880 6037 Term Life 105 200 200 200 6038 Workers Compensation 40,548 20,660 20,660 12,550 6040 Long Term Disability 762 760 760 800 6054 Interdepartmental Labor Credit (115,080) (109,350) (104,560) (139,300) Personal Services Total $ 453,043 $ 448,220 $ 465,780 $ 457,610 Other Services & Charges 6103 Professional Services -General $ 3,712 $ 4,500 $ 4,000 $ 4,000 6202 Data Processing Rental 17,469 18,540 19,130 20,230 6204 Motor Pool Operating Rental 6,170 8,000 8,000 8,240 6205 Maintenance & Repairs 10,924 8,500 9,000 9,500 6207 Utility Services 21,601 25,750 22,000 22,600 6301 Advertising & Publication 2,021 3,200 3,000 3,200 6302 Communications 2,514 2,160 2,500 2,700 6303 Professional Development 1,339 500 1,400 1,400 6305 Subscriptions & Memberships 15 - - - 6307 Insurance & Bonds 8,457 8,300 8,670 8,930 6308 Property Liability 2,980 3,070 3,070 3,160 6315 Other Contractual Services 2,244 3,600 9,900 16,540 6401 Office Supplies 244 300 300 320 6403 Postage 23 250 50 50 6410 Small Tools & Parts 485 1,100 1,000 1,000 6414 Other Supplies 19,238 16,000 19,300 20,000 6513 Other Charges 2,566 2,470 2,800 2,900 Other Services & Charges Total $ 102,002 $ 106,240 $ 114,120 $ 124,770 Wood Lake Nature Center TOTAL $ 555,045 $ 554,460 $ 579,900 $ 582,380 -123- FUND: GENERAL FUND DEPARTMENT: Recreation Services BUSINESS UNIT: Wood Lake Nature Center - 18000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Manager M-1 1.00 1.00 1.00 Naturalist GS-5E 2.00 2.00 2.00 Sustainability Specialist GS-4 - 1.00 1.00 Senior Office Aide GS-2 1.00 1.00 1.00 Public Works Worker LT-3 1.00 1.00 1.00 Total 5.00 6.00 6.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - - 124 - THIS PAGE WAS LEFT BLANK INTENTIONALLY - 125 - BUDGET SUMMARY LIQUOR CONTRIBUTION FUND AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources Liquor Profits Interest Subtotal Uses Transfers Subtotal FUND BALANCE MISSION STATEMENT 2018 2019 2020 Actual Budget Revised Budget $ 134,745 $ 135,645 $ 136,873 $ 137,823 - 450,000 - 450,000 2,128 950 950 950 2,128 450,950 950 450,950 450,000 - 450,000 450,000 450,000 $ 136,873 $ 136,595 $ 137,823 $ 138,773 The Liquor Contribution Fund is financed by earnings of the Municipal Liquor Fund, which are transferred to this fund annually. As capital improvement projects are undertaken, money is transferred out of this fund to the capital improvement funds to finance the project. DIVISION FOCUS For the 2019 Revised there will be no liquor profits transfered to or from the Liquor Contribution fund. The Liquor fund will retain it's profits for 2019 in order to rebuild the fund's cash balance. Beginning again in 2020, it is hoped that the Liquor fund will be able contribute $450,000 to the Liquor Contribution fund. Projects that have historically been funded through the Liquor Contribution fund will be funded by Capital Project fund sources for 2019. -126- BUDGET SUMMARY TOURISM ADMINISTRATION AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources Hotel/Motel Lodging Tax Interest Subtotal Uses Personal Services Subtotal 2018 2019 2020 Actual Budget Revised Budget $ 51,219 $ 54,789 $ 55,646 $ 56,016 13,233 13,000 10,000 10,000 1,033 400 500 500 14,266 13,400 10,500 10,500 FUND BALANCE $ 55,646 $ 58,059 $ 56,016 $ 56,386 MISSION STATEMENT To set up funding for the Richfield Tourism Promotion Board through a Lodging Tax on the gross receipts on lodging from hotels and motels within the city. The purpose of this fund is to promote and market the city as a tourist or convention center. DIVISION FOCUS To create a climate supportive of the hotel industry in the city of Richfield. This includes sponsoring events and other appropriate activities which provide visibility for Richfield as a tourist center. 2020 TOURISM ADMINISTRATION GOALS 1. To promote the city of Richfield as a tourist or convention center. 2. To promote civic activities which enhance the city's positive image. 3. To carry out such activities as permitted under Minnesota statutes. DIVISION EXPENDITURE COMMENT This fund is responsible for the collection of lodging tax revenues and the distribution of these funds to the Richfield Tourism Promotion Board (RTPB), and for the examination of the records of any operator for verification of accuracy on the Lodging Tax Returns as well as an annual report to the State of Minnesota. Revenue here represents 5% of the total taxes generated and submitted to the Richfield Tourism Promotion Board. The Richfield Tourism Promotion Board, which meets monthly, is comprised of a representative of the Richfield Chamber of Commerce and a representative from each of the four hotel/motel properties in Richfield. The City Manager serves as the City's liaison to the Board. The duties of the Board include the annual expenditure and a allocation of lodging tax revenues for permissible activities. -127- BUDGET SUMMARY COMMUNICATIONS FUND 2018 2019 2020 AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget PRIOR YEAR FUND BALANCE $ 1,984,728 $ 1,873,128 $ 2,035,076 $ 2,126,506 Sources Franchise Fees 401,332 434,000 370,000 373,000 Interest 22,801 9,700 22,000 22,800 Miscellaneous Revenues 3,101 - - - Subtotal 427,234 443,700 392,000 395,800 Uses Personal Services 182,660 201,260 180,770 206,910 Other Service & Charges 116,701 138,840 119,800 123,350 Capital Outlay 7,525 - - - Transfers Out: General Fund - 150,000 - 150,000 Enterprise Fund 70,000 - - - Subtotal 376,886 490,100 300,570 480,260 FUND BALANCE $ 2,035,076 $ 1,826,728 $ 2,126,506 $ 2,042,046 COMMUNICATIONS FUND MISSION STATEMENT To provide communication services to Richfield residents via the City's Cable TV channel, web site, publications, social media, and media relations. Administer the City's Cable Television ordinance. DIVISION FOCUS The communication fund is financed through franchise fees derived from cable television subscribers. These funds are paid to the city under obligations of the Cable Television Franchise Ordinance. The funds are used to finance public service -related cable television programming and public information activities. The overall administration of this fund is performed through the city's Administrative Services Department. Positions funded by this division include: Communications and Engagement Manager (100 percent), Video Production Assistant (100 percent), Communications Specialist (100 percent), and Communications Intern (100 percent). The Communications and Engagement Manager oversees the city's website, social media, cable TV programming, intranet, internal communications and external communications. Both the part-time Communications Specialist and Communications Intern assist the Communications and Engagement Manager in accomplishing the city's communication goals. The part-time Video Production Assistant records city meetings, as well as assists in the production of other videos. The city's primary programming focus is the cable casting of Richfield City Council, Housing and Redevelopment Authority and Planning Commission meetings. All additional city programming is produced through this division. In an effort to adequately produce these programs cameras, a control counsel, editing equipment and various accessories are needed. Equipment is updated as needed. This fund also enhances government transparency and improves civic engagement by funding the OpenGov, online budget transparency tool, and Richfield Connect, the city's online engagement program. -128- 2019 Highlights • Broadcasted 48 public meetings live on Channel 16. These meetings were also recorded for rebroadcast on Channel 16, the city's website and social media channels. • Produced informational and promotional videos. • Produced 60 project updates, recruitment videos and the mayor's State of the Community. • Maintained the city's YouTube channel, posted various Richfield content which accrued 85,804 views. • Maintained city's Facebook, Twitter, Instagram accounts. • Maintained additional Facebook pages for Wood Lake Nature Center, Farmers Market, Richfield Police Department and Sweet Streets. • Expanded municipal liquor store's social media presence. • Created stand-alone website for Richfield's municipal liquor stores. • Established, planned and edited 50 episodes of the That's Rich(field) Podcast, which to date has been downloaded more than 5,000 times. • Increased the number of likes on Richfield's Facebook page to 8,038. • Increased the number of followers on Richfield's Twitter account to 3,499. • Increased the number of followers on Richfield's Instagram account to 955. • Created the communications intern program. • Added a communication specialist to the Communication and Engagement Unit. • Created an annual citizen's academy entitled Richfield University to provide residents with a better understanding of the services, programs and events offered by the city. • Continued to work with media contacts at the Star Tribune, Sun Current and other media outlets. • Redesigned, produced and expanded the offerings in the annual report. • Expanded the communications relationships with the communications personnel at the Richfield Chamber of Commerce and Richfield School District. • Provided professional -quality graphic design support for city initiatives. • Promote new core values, mission and vision with internal and external stakeholders. • Worked closely with the Richfield Tourism and Promotion Board to enhance Richfield's reputation. 2020 Goals • Continue to balance revenue limitations with the costs associated with providing city services. • Continue Richfield's participation in the Southwest Suburban Cable Commission. • Broadcast and record City Council, Housing and Redevelopment Authority and Planning Commission meetings. • Expand the city's e-notify and newsletter contact lists. • Expand content offerings for Channel 16, website and social media channels. • Keep up-to-date on latest trends in cable broadcasting, web development, graphic design and social media. • Continue to expand social networking presence. • Seek further media relationships to promote mission, vision and goals of the city. • Coordinate the implementation of the new Richfield brand throughout all departments. -129- FUND: COMMUNICATIONS FUND DEPARTMENT: Administrative Services BUSINESS UNIT: Communications - 20004 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Assistant City Manager M-4 .20 - - Communications & Engagement Manager M-1 1.00 1.00 1.00 Total 1.20 1.00 1.00 Intermittent Employees Video Production Assistant SP9-3 1.00 1.00 1.00 Total 1.00 1.00 1.00 Part -Time Employees Communication Specialist GS4-6 1.00 1.00 1.00 Total 1.00 1.00 1.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -130- BUDGET SUMMARY - ELECTIONS FUND 2018 2019 AVAILABLE FOR APPROPRIATION Actual Budget Revised PRIOR YEAR FUND BALANCE Utner Kevenues Interest Subtotal Uses Personal Services Other Services and Charges Capital Outlay Subtotal FUND BALANCE MISSION STATEMENT 2020 Rl1rinat 1 n9R '�7Q � 1 19Q QAQ � 1 9R7 QnR -(� 1 ARR RnR 343,064 265,000 345,000 362,000 1 F 71 Q F Fnn 1 R nnn 1 F rnn JJU,/UJ LI I,JUU JU I,UVU J/U,JUU 88,802 99,400 96,400 99,140 29,452 42,290 33,900 34,320 - - qn nnn - I I U,LJ'+ I'+ 1 ,UUU I UU,JUU I JJ,-FUU $ 1,267,908 $ 1,259,759 $ 1,468,608 $ 1,713,648 The Elections Fund was established to isolate the large fluctuation in costs from year to year. DIVISION FOCUS The Election Division provides voter registration services, voter information services, and election administration services for the City. The City Clerk is responsible for the management of these services. City Clerk Division employees provide staffing and support to the Election Division. Responsibilities include the conduct of primary, general, and special elections, the recruitment and training of election judges, maintenance of voter registration records, programming/testing of voting equipment, polling place arrangements, legal notices, candidate filings, ballot printing, administration of absentee ballot process, and acting as an information resource for the public regarding election information. DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects the reflects the level of services to be provided during a non - election year. The 2020 reflects the anticipation of costs associated with the upcoming State Primary and General Elections and voter registration activities. - 131 - BUDGET SUMMARY DRUG/FELONY FORFEITURE 2018 AVAILABLE FOR APPROPRIATION Actual PRIOR YEAR FUND BALANCE Sources Drug/Felony Forfeiture Interest Sale of Property Other Revenues Subtotal Uses Other Service & Charges Subtotal FUND BALANCE MISSION STATEMENT 2019 Rudaet Revised 2020 RudaP-t $ 140,734 $ 156,134 $ 185,839 $ 205,409 53,093 40,000 51,200 40,000 2,496 850 1,500 2,000 - 1,000 1,000 - _ _ 7 inn - 55,bbu 41,bbU b1,2UU 42,000 10,484 42,160 41,630 43,000 10,484 42,160 41,630 43,000 $ 185,839 $ 155,824 $ 205,409 $ 204,409 The Drug/Felony Forfeitures Fund receives its revenues as the result of cash and property seized relating to drug and/or felony type criminal activity and vehicles seized due to aggravated DUI violations. By law, the funds can only be used for law enforcement purposes. DIVISION FOCUS The funds will used for various police equipment and training needs. The 2019 revised budget reflects the purchase of digital forensic training ($20,000), Level III bunkers for SWAT ($6,000), Armors Tool/Gun Mat and Gun Cleaning Machine ($1,200), First Aid Kit backpacks for SWAT ($300), MP5 Magazines ($600), Thor Hammer 2 ($130), Bunker for Investigations ($1,400), Camera Bundle and Lens for investigations ($6,000) and Badge item changes ($6,000).. In 2020, planned purchases are for new monitors and four Surface Pro's for command staff ($6,400), Level III bunker for Patrol ($3,000), digital forensic training ($20,000), Badge item changes ($5,000), Suppressors for SWAT ($6,400), Less Lethal Conversion Shotguns for Patrol ($2,200). -132- BUDGET SUMMARY PUBLIC SAFETY COMPLIANCE AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources Intergovernmental: Federal Grants State Grants County Grants APS Revenue Interest Other Revenues Subtotal Uses Personnel Services Other Service & Charges FUND BALANCE MISSION STATEMENT 2018 2019 2020 Actual Budget Revised Budget $ 114,441 $ 113,361 $ 139,630 $ 155,580 4,424 6,230 12,770 6,000 3,158 - 3,000 3,000 20,000 20,000 20,000 - 5,422 4,500 4,600 4,600 1,882 650 1,000 1,100 15,993 - 24,420 - 50,879 31,380 65,790 14,700 915 2,300 2,300 2,200 24,775 27,000 47,540 6,000 25,690 29,300 49,840 8,200 $ 139,630 $ 115,441 $ 155,580 $ 162,080 This fund accounts for revenue generated from several sources. The first two sources are received from fines levied against local business that fail alcohol and tobacco compliance checks and the Automated Pawn System which is managed by the City of Minneapolis. The next source of revenue is derived from grants received from federal, state, and county agencies. For 2019 the City was awarded a Justice Assistance Grant (JAG) for $9,650. It is unknown if the City will receive a JAG grant in 2020.. DIVISION FOCUS Funds received from compliance failure fines will be used to fund future ongoing compliance checks and the Automated Pawn System. Grants awarded to the department will be administered within this fund. The Joint Community Police Partnership (JCCP) grant money will also be administered within this fund. However, the City has been notified that it will not be receiving and JCCP funding for 2020 and it is unknown whether any funding will be received beyound 2020. It is anticipated that federal and state bullet proof vest grant funds will be received in 2019 and 2020. -133- BUDGET SUMMARY RECREATION CONTRIBUTIONS AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources Intergovernmental County Contributions Interest Subtotal Uses Other Services & Charges Subtotal FUND BALANCE MISSION STATEMENT 2018 Artual 2019 Budget Revised 2020 Budget $ 15,883 $ 25,983 $ 38,328 $ 47,528 11,250 - - - 31,038 30,000 30,000 30,000 371 150 200 220 42,659 30,150 30,200 30,220 20,214 20,000 21,000 21,000 20,214 20,000 21,000 21,000 $ 38,328 $ 36,133 $ 47,528 $ 56,748 The Recreation Contributions Fund serves as a way to account for donations that are intended to benefit activities of the Recreation Services Department. Sources of revenue include donations/contributions come from individuals, businesses or corporations, as well grants and interest earnings. Uses of the funds include staffing costs, supplies, equipment, construction and other charges. DIVISION FOCUS Fund activity includes donations from individuals for donated park features, receipt of on-line engraving donations for the Honoring All Veterans Memorial, and Community Center fundraising events like the Boutique and the Garage Sale. -134- BUDGET SUMMARY NATURE CENTER CONTRIBUTIONS AVAILABLE FOR APPROPRIATION 2018 Actual 2019 Budget Revised 2020 Budget PRIOR YEAR FUND BALANCE $ 47,654 $ 43,874 $ 53,961 $ 56,961 Sources Intergovernmental State Grant 19,574 - 19,500 19,500 County 1,575 - - 5,000 Contributions 67,815 71,000 70,000 65,000 Interest 4,637 2,500 4,600 4,700 Subtotal 93,601 73,500 94,100 94,200 Uses Personal Services 41,180 37,200 42,000 42,500 Other Services & Charges 46,114 37,000 49,100 49,500 Subtotal 87,294 74,200 91,100 92,000 FUND BALANCE $ 53,961 $ 43,174 $ 56,961 $ 59,161 MISSION STATEMENT The Nature Center Contribution Fund serves as a way to account for donations that are intended to benefit Wood Lake Nature Center. Sources of donations mostly come from the fundraising activities of the Friends of Wood Lake (FOWL). Other donations are received from individuals, businesses or corporations. Another source includes interest earned from the fund balance. Uses of the fund include a transfer into to the Woodlake Nature Center Operating Budget for staffing costs, supplies, equipment, construction and other charges. DIVISION FOCUS Sources of revenue include proceeds from the FOWL Dinner, FOWL membership fees, the Turkey Trailblazer, garden leaf sales, and miscellaneous donations received for park features. Uses of funds include the cost of the FOWL newsletter, volunteer shirts, and sponsorship of the Halloween Program. -135- BUDGET SUMMARY PUBLIC HEALTH GRANTS 2018 AVAILABLE FOR APPROPRIATION Actual PRIOR YEAR FUND BALANCE Sources Intergovernmental Revenues: Public Health Grants Interest Subtotal Uses Other Service & Charges FUND BALANCE MISSION STATEMENT 2019 2020 Rildnc4 RPvicarl R11rinni $ 99,203 $ 99,703 $ 104,510 $ 109,230 52,397 36,320 52,400 52,400 1,464 550 650 750 FZ Arl IR A70 FZ ()rin ti11 9F() 48,554 36,320 48,330 48,330 48,554 36,320 48,330 48,330 $ 104,510 $ 100,253 $ 109,230 $ 114,050 To prepare for internally and provide services to the community in the area of strengthening the City's ability to assess and enhance the capacity of local public health departments to respond to bioterrorism, infectious diseases, and other threats to public health. DIVISION FOCUS These dollars are grant funds that are provided to each Community Health Service agency, of which Richfield is one, from or through the State of Minnesota to work on providing services in the area of public health emergency preparedness services. The grant dollars originate from the Centers for Disease Control and Prevention and are intended to be used to assess and enhance the capacity of the state and local public health departments to respond to bioterrorism, infectious diseases, and other threats to public health. -136- BUDGET SUMMARY WOOD LAKE HALF MARATHON 2018 AVAILABLE FOR APPROPRIATION Actual PRIOR YEAR FUND BALANCE Sources Charges for Service Contributions Interest Earnings Subtotal Uses Personal Services Other Service & Charges Subtotal FUND BALANCE 2019 Budget Revised 2020 Budget $ 32,615 $ 33,715 $ 25,636 $ 31,336 48,830 55,000 55,000 55,000 10,500 14,000 14,000 14,000 494 100 500 500 59,824 69,100 69,500 69,500 33,000 30,000 30,000 30,000 33,803 30,000 33,800 33,800 66,803 60,000 63,800 63,800 $ 25,636 $ 42,815 $ 31,336 $ 37,036 MISSION STATEMENT The Urban Wildland Half Marathon & 5K has been held since 2003. The event was initiated in response to proposed cuts in Local Government Aid and was seen as a way to fund Wood Lake Nature Center's environmental education curriculum for Richfield Public School students in kindergarten through eighth grade. The costs of the environmental education program are offset by revenue from the Urban Wildland Half Marathon & 5K. DIVISION FOCUS Event sponsorships are detailed as "contributions" and revenues from race registration, detailed as "charges for service. The "uses" include expenditures related to the race, as well as the amount that will offset environmental education program costs. -137- BUDGET SUMMARY FRANCHISE FEES 2018 2019 2020 AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget PRIOR YEAR FUND BALANCE $ 746,224 $ 2,017,754 $ 2,208,703 $ 2,021,223 Sources Franchise Fee 1,840,884 1,832,000 1,832,000 1,832,000 Interest 19,860 5,000 20,000 15,000 Subtotal 1,860,744 1,837,000 1,852,000 1,847,000 Uses Other Services & Charges 44,925 95,000 95,000 95,000 Transfers Out: Debt Service Fund 353,340 744,480 744,480 748,020 Capital Project Fund - 1,200,000 1,200,000 2,100,000 Subtotal 398,265 2,039,480 2,039,480 2,943,020 FUND BALANCE $ 2,208,703 $ 1,815,274 $ 2,021,223 $ 925,203 MISSION STATEMENT The establishment of gas and electric franchise fees was in response to reductions in state aids and the potential for state imposed levy limits. The fees allow the City to have a reliable revenue stream.. DIVISION FOCUS The primary purpose of the establishment of gas and electric franchise fees was to replace revenues lost to reductions in state aids and to offset the potential for state imposed levy limits. The fees provide funding for the maintenance of city streets, and diseased tree treatments, removal, and replacement. The most recent increase in Franchise fees took affect in the second quarter or 2014. The purpose of this last increase was to fund the City's six year mill and overlay project of all city streets. As part of that funding, the City issued general obligation street reconstruction bonds in 2015 and 2018 and franchise fees will serve as the source of the funding for the bonds debt service. 2020 will be the year six of the mill and overlay program. -138- AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources User Fees Commodities Other Revenues Transfers In: General Fund Capital Project Fund Subtotal Uses Personal Services Other Service & Charges Interest Charges Capital Outlay Subtotal FUND BALANCE MISSION STATEMENT BUDGET SUMMARY ICE ARENA 2018 2019 2020 Actual Budget Revised Budget $ (4,024,450) $ (3,896,720) $ (3,841,402) $ (3,630,702) 1,004,546 941,390 1,009,170 1,040,040 60,213 60,200 60,200 61,930 68,360 67,800 67,800 68,020 85,000 100,000 100,000 110,000 170,000 - - 3,680,000 1,388,119 1,169,390 1,237,170 4,959,990 542,879 505,290 521,650 573,960 450,084 472,090 472,500 487,220 18,573 16,480 16,480 14,130 193,535 - 15,840 3,680,000 1,205,071 993,860 1,026,470 4,755,310 $ (3,841,402) $ (3,721,190) $ (3,630,702) $ (3,426,022) The Ice Arena operation serves to provide recreational skating and on ice programs for a variety of ages; to provide equitable ice availability for male and females; to provide a quality ice sheet, and a clean and safe facility. The operation provides skating lessons, open skating, and sponsors the annual ice show. Ice is rented to the local high schools for practice and games, youth associations for clinics, practices, games, and hockey tournaments. The St. Paul Figure Skating Competition rents ice along with private hockey schools and various groups for hockey and broomball. DIVISION FOCUS During 2019 successfully completed our first full year of curling. The addition of curling should help increase revenues during off peak times of the year. Finally, in another effort to create new revenue streams, "private lesson time" was added. Continue to work on developing a budget plan to replace the current refrigeration systems in Rink 1 and 2 in 2020. In addition create a new management agreement with the Minnesota Magicians hockey team. Finally, staff will continue the partnerships with the Minnesota Magicians, Holy Angels and Southwest Christion/Richfield High Schools in efforts to generate more revenues during off peak times. Finally, the operation will continue to look for ways to maximize revenues and maintain or reduce operating costs while still providing a quality facility and experience. -139- FUND: ICE ARENA DEPARTMENT: Recreation Services BUSINESS UNIT: Ice Arena - 20035 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Facility Manager M-1 1.00 1.00 1.00 Facility Operations Assistant GS-3 1.00 - - Public Works Worker LT-1 1.00 1.00 1.00 Recreation Supervisor GS-5E 1.00 2.00 2.00 Total 4.00 4.00 4.00 Part -Time Employees Custodian GS-2 - 1.00 1.00 Senior Office Aide GS-2 1.00 - - Total 1.00 1.00 1.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET HVAC $ - $ 15,840 $ - Ice Arena Refrigeration - - 3,680,000 Total $ - $ 15,840 $ 3,680,000 -140- AVAILABLE FOR APPROPRIATION PRIOR YEAR FUND BALANCE Sources User Fees Commodities Transfers In: General Fund Subtotal Uses Personal Services Other Service & Charges Subtotal FUND BALANCE MISSION STATEMENT BUDGET SUMMARY SWIMMING POOL 2018 Actual Budget 2019 Revised 2020 Budget $ (999,522) $ (960,522) $ (952,039) $ (881,589) 305,886 342,120 372,420 386,310 65,050 64,890 64,890 66,840 100,000 100,000 100,000 110,000 470,936 507,010 537,310 563,150 201,512 211,720 211,720 217,770 221,941 252,700 255,140 263,720 423,453 464,420 466,860 481,490 $ (952,039) $ (917,932) $ (881,589) $ (799,929) The Swimming Pool strives to provide the community with an outstanding outdoor recreational swimming experience for various ages and groups; to provide quality pool water; to provide a clean and safe facility and to provide healthy concession choices for customers. DIVISION FOCUS The Living Social season pass promotion was offered for the sixth year and resulted in 6,300 season passes being sold, generating an estimated $175,000 in revenue. New security cameras were added throughout the facility to provide extra security. For 2020, the feasibility of opening the zero depth pool on Memorial and Labor Day weekends will be explored and adding a splash pad to the facility to increase revenues. Also, continue to add more shading units and patio furniture to the facility. MHE BUDGET SUMMARY SPECIAL FACILITIES 2018 AVAILABLE FOR APPROPRIATION Actual PRIOR YEAR FUND BALANCE Sources Other Revenues Interest Transfers In: General Fund Subtotal Uses Personal Services Other Service & Charges Capital Outlay Subtotal FUND BALANCE MISSION STATEMENT 2019 Rudaet Revised 2020 Rudaet $ 14,907 $ 14,997 $ 26,791 $ 30,291 146,083 36,090 131,190 40,400 232 - - - 10,000 10,000 10,000 - 156,315 46,090 141,190 40,400 9,870 10,170 10,170 10,470 25,629 36,290 36,420 37,500 108,932 - 91,100 - 144,431 46,460 137,690 47,970 $ 26,791 $ 14,627 $ 30,291 $ 22,721 To provide leisure activity for the public through miniature golf and picnics; to provide a well landscaped, attractive and fun miniature golf course, and to provide a clean and safe picnic area. DIVISION FOCUS City staff and Wheel Fun Rentals, Inc. operate the miniature golf and picnic shelter facilities. The operation provides recreational miniature golf for all ages, plans special events, promotes group events, provides newspaper and direct mail advertisement, and provides a quality picnic shelter for the Richfield Farmers Market and park users. In 2019 a new lease was executed with Wheel Fun Rentals for a period of 15 years. At the same time Wheel Fun Rentals is investing over $240,000 into a new mini golf course and walkways. In addition, the inside of the existing park building was renovated to provide a more inviting dining area and patio area. Looking ahead to 2020, efforts will be made to increase revenue from shelter rentals, develop a new programming event for the Christmas season, and install new gutters on the park building. NElPM THIS PAGE WAS LEFT BLANK INTENTIONALLY - 143 - FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 50010 LYNDALE LIQUOR STORE $ 3,656,221 $ 3,992,300 $ 3,815,870 $ 4,193,440 5.04% 50020 CEDAR LIQUOR STORE 3,837,730 4,075,140 4,127,080 4,526,410 11.07% 50030 PENN LIQUOR STORE 2,035,129 2,703,560 2,390,310 2,651,660 (1.92%) 50040 WINE & SPIRITS 1,576,410 1,576,750 1,826,010 1,822,560 15.59% Liquor Operations TOTAL $11,105,490 $12,347,750 $12,159,270 $13,194,070 6.85% 0AV=1Ll1111:? 50010 LYNDALE LIQUOR STORE $ 3,909,692 $ 4,179,500 $ 4,042,700 $ 4,325,950 3.50% 50020 CEDAR LIQUOR STORE 4,147,066 4,232,740 4,456,200 4,768,000 12.65% 50030 PENN LIQUOR STORE 2,040,719 2,645,250 2,404,430 2,572,710 (2.74%) 50040 WINE & SPIRITS 1,573,689 1,514,530 1,691,670 1,810,150 19.52% $14,000,000 E $12,000,000 X P $10,000,000 E N $8,000,000 S E $6,000,000 S $4,000,000 $2,000,000 $0 LIQUOR OPERATIONS 2018 2019B 2019R 2020B YEAR oW&S E3 Penn o Cedar E3 Lyndale -144- BUDGET SUMMARY LIQUOR FUND PROJECTION AVAILABLE FOR APPROPRIATION PRIOR YEAR RETAINED EARNINGS Revenues Sales Less Cost of Sales Net Sales Miscellaneous Revenues Interest Other Revenues (Net) Total Miscellaneous Revenues Total Revenues Expenses Personal Services Other Services and Charges Total Operating Expenses Net Income before Depreciation Depreciation Net Income (Loss) Operating Transfers From (To): Special Revenue Fund General Fund Special Revenue Fund Net Transfers RETAINED EARNINGS CAPITAL OUTLAY 2018 2019 2020 2021 Actual Revised Budget Projected $ 3,273,147 $ 3,838,831 $ 4,430,561 $ 4,713,301 11,561,557 12,560,850 13,440,120 13,843,320 (8,645,844) (9,420,630) (10,080,090) (10,382,490) 2,915,713 3,140,220 3,360,030 3,460,830 - - 1,000 1,000 39,611 34,150 35,690 36,760 39,611 34,150 36,690 37,760 0 atir,'10d 117d'17n I laa 70n I daA Fan 1,372,924 1,480,280 1,537,720 1,576,160 579,474 557,990 571,960 589,120 1,952,398 2,038,270 2,109,680 2,165,280 1,002,926 1,136,100 1,287,040 1,333,310 207,322 235,440 236,090 243,170 795,604 900,660 1,050,950 1,090,140 70,000 - - - (299,920) (308,930) (318,210) (327,750) (450,000) (450,000) (229,920) (308,930) (768,210) (777,750) $ 3,838,831 $ 4,430,561 $ 4,713,301 $ 5,025,691 $ - $ 156,000 $ - $ - -145- BUDGET SUMMARY LIQUOR FUND PROJECTION 2018 2019 2020 2021 CASH FLOW SUMMARY Actual Revised Budget Projected SOURCES OF CASH Total Revenues $ 11,601,168 $ 12,595,000 $ 13,476,810 $ 13,881,080 Items not requiring cash - Decrease in Receivables 508 - - - Decrease in Prepaid items 1,006 - - - Interfund Loan 212,511 - - - Depreciation 207,322 235,440 236,090 243,170 Transfer from Special Revenue Fund 70,000 - - - TOTAL SOURCES 12,092,515 12,830,440 13,712,900 14,124,250 USES OF CASH Total Expenses 10,805,564 11,694,340 12,425,860 12,790,940 Increase in Inventory 59,530 - - - Decrease in Payables 275,709 - - - Capital Outlay 1,376,122 156,000 - - Transfer to General Fund 299,920 308,930 318,210 327,750 Transfer to Special Revenue Fund - - 450,000 450,000 TOTAL USES 12,816,845 12,159,270 13,194,070 13,568,690 NET INCREASE (DECREASE) IN CASH (724,330) 671,170 518,830 555,560 CASH BALANCE - JANUARY 1 724,330 - 671,170 1,190,000 CASH BALANCE - DECEMBER 31 $ - $ 671,170 $ 1,190,000 $ 1,745,560 CASH TO BE AVAILABLE Current Assets - December 31 1,320,529 Less: Current Liabilities - Dec. 31 764,249 CASH TO BE AVAILABLE $ 556,280 -146- LIQUOR OPERATIONS MISSION STATEMENT To responsibly distribute alcoholic beverages at retail, consistently provide assistance in the form of quality customer service, well maintained, attractive city -owned facilities while also providing adequate funds for recreational projects in Richfield. DIVISION FOCUS The Richfield Liquor Dispensary was established in 1943. The operations consist of four retail beverage outlets with annual sales in 2018 of 11.5 million dollars. The liquor operations employ seven full time, eight permanent part time and approximately 50 seasonal and intermittent staff members. 2019 HIGHLIGHTS The 7700 Lyndale Liquor Store underwent a complete roof replacement at an estimated cost of $150,000. • A new cooling system was installed at the 7700 Lyndale Liquor Store. • Creation of a "Round Up" program so that customers would voluntarily donate to generate short-term funding for various city recreation projects. 2020 DIVISION GOALS • Establish a broad social media presence (Instagram, Facebook, Twitter etc.). • Establish a free-standing web page for the liquor operations. Establish on -going Community Awareness campaign of liquor store profit destinations. (City Recreation). DIVISION EXPENDITURE COMMENT The Department has completed the upgrade of the Lyndale Liquor Store, May 2013, Cedar, November 2016 and the Penn Store in June 2018. - 147 - FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: LYNDALE LIQUOR STORE - 50010 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Liquor Sales 5005 Sales - Liquor $ 1,297,815 $ 1,392,270 $ 1,330,680 $ 1,423,820 5010 Sales - Wine 958,776 1,039,470 1,034,700 1,107,160 5015 Sales - Beer 1,484,420 1,593,840 1,532,290 1,639,550 5025 Sales - Cigarettes 63,364 52,220 48,390 51,780 5030 Sales - Food 22,848 22,570 21,770 23,300 5035 Sales- Other 68,763 68,090 64,520 69,000 Liquor Sales Total $ 3,895,986 $ 4,168,460 $ 4,032,350 $ 4,314,610 Other Income 8011 Investment Earnings $ - $ 350 $ - $ 250 8032 Commissions 4,481 6,070 4,500 4,700 8033 Cash/Over Short 291 100 100 100 8035 Other Miscellaneous Revenues 2,325 420 250 290 8040 Sales - Lottery Commissions 6,609 4,100 5,500 6,000 Other Income Total $ 13,706 $ 11,040 $ 10,350 $ 11,340 LMDALE LIQUOR STORE TOTAL $ 3,909,692 $ 4,179,500 $ 4,042,700 $ 4,325,950 -148- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: LYNDALE LIQUOR STORE - 50010 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Costs of Goods Sold 5510 Purchases for Resale $ 2,899,675 $ 3,129,420 $ 3,024,260 $ 3,235,960 Costs of Goods Sold Total $ 2,899,675 $ 3,129,420 $ 3,024,260 $ 3,235,960 Personal Services 6005 Full Time $ 135,598 $ 129,630 $ 140,020 $ 143,860 6006 Part-time 86,850 87,280 88,870 91,530 6007 Seasonal 105,133 100,500 106,000 109,180 6009 Overtime 1,328 600 1,500 1,500 6013 Longevity 1,145 1,120 1,180 1,210 6031 Employer Social Security 19,887 19,600 20,020 20,670 6032 Employer Medicare 4,651 4,600 4,720 4,820 6033 Employer Pera (718) 23,800 30,330 31,010 6035 Medical Insurance 41,616 17,220 38,860 42,160 6036 Dental Insurance 1,230 1,170 1,170 1,180 6037 Term Life 34 70 70 70 6038 Workers Compensation 2,136 2,160 2,160 2,370 6040 Long Term Disability 268 270 460 470 6051 Interdepartmental Labor 8,104 5,000 8,400 8,500 Personal Services Total $ 407,262 $ 393,020 $ 443,760 $ 458,530 Other Services & Charges 6103 Professional Services -General $ 6,244 $ 6,250 $ 6,300 $ 6,400 6202 Data Processing Rental 21,950 21,760 23,480 23,950 6205 Maintenance & Repairs 4,429 3,900 4,000 4,200 6207 Utility Services 31,502 31,500 32,000 32,200 6301 Advertising & Publication 9,048 6,300 7,000 7,200 6302 Communications 745 930 770 780 6303 Professional Development 8 100 100 100 6305 Subscriptions & Memberships 75 50 60 60 6307 Insurance & Bonds 13,798 13,800 13,000 13,390 6308 Property Liability 3,970 4,090 4,090 4,210 6310 Taxes & Licenses 925 1,050 950 970 6315 Other Contractual Services 9,519 10,500 10,000 10,200 6401 Office Supplies 1,364 1,200 1,200 1,200 6402 Copy Charges 67 50 50 50 6403 Postage 655 720 650 660 6409 Uniforms & Clothing 1,136 - 1,000 1,000 6414 Other Supplies 9,989 9,200 9,000 9,000 6513 Other Charges 58,812 58,000 60,000 62,000 Other Services & Charges Total $ 174,236 $ 169,400 $ 173,650 $ 177,570 Depreciation 6610 Depreciation $ 79,077 $ 57,600 $ 75,340 $ 75,550 -149- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: LYNDALE LIQUOR STORE - 50010 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Depreciation Total $ 79,077 $ 57,600 $ 75,340 $ 75,550 Other Financing Uses 8511 Operating Transfers Out $ 95,971 $ 242,860 $ 98,860 $ 245,830 Other Financing Uses Total $ 95,971 $ 242,860 $ 98,860 $ 245,830 LYNDALE LIQUOR STORE TOTAL $ 3,656,221 $ 3,992,300 $ 3,815,870 $ 4,193,440 -150- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: LYNDALE LIQUOR STORE - 50010 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Liquor Operation Director M-4 .25 .25 .25 Liquor Store Manager M-1 1.00 1.00 1.00 Liquor Account Clerk GS-3 .25 .25 .25 Total 1.50 1.50 1.50 Part -Time Employees Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Total 3.00 3.00 3.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - - 151 - FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: CEDAR LIQUOR STORE - 50020 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Liquor Sales 5005 Sales - Liquor $ 1,247,691 $ 1,273,340 $ 1,380,990 $ 1,477,680 5010 Sales - Wine 947,285 1,002,000 1,227,200 1,313,100 5015 Sales - Beer 1,746,890 1,773,380 1,689,600 1,807,870 5025 Sales - Cigarettes 92,958 75,140 53,360 57,090 5030 Sales - Food 21,336 22,300 24,010 25,690 5035 Sales- Other 79,941 77,660 71,140 76,120 Liquor Sales Total $ 4,136,101 $ 4,223,820 $ 4,446,300 $ 4,757,550 Other Income 8011 Investment Earnings $ - $ 350 $ - $ 250 8032 Commissions 3,430 3,700 3,700 3,800 8033 Cash/Over Short (869) 100 100 100 8035 Other Miscellaneous Revenues 2,495 420 100 100 8040 Sales - Lottery Commissions 5,909 4,350 6,000 6,200 Other Income Total $ 10,965 $ 8,920 $ 9,900 $ 10,450 CEDAR LIQUOR STORE TOTAL $ 4,147,066 $ 4,232,740 $ 4,456,200 $ 4,768,000 -152- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: CEDAR LIQUOR STORE - 50020 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Costs of Goods Sold 5510 Purchases for Resale $ 3,113,900 $ 3,171,130 $ 3,334,720 $ 3,568,160 Costs of Goods Sold Total $ 3,113,900 $ 3,171,130 $ 3,334,720 $ 3,568,160 Personal Services 6005 Full Time $ 140,616 $ 139,670 $ 143,450 $ 147,330 6006 Part-time 79,033 93,250 82,030 86,720 6007 Seasonal 108,616 112,300 110,200 112,010 6009 Overtime 1,747 1,250 2,000 2,100 6013 Longevity 1,145 1,120 1,180 1,200 6031 Employer Social Security 20,136 21,390 20,430 21,080 6032 Employer Medicare 4,709 5,000 4,780 4,920 6033 Employer Pera (432) 25,880 30,000 31,630 6035 Medical Insurance 39,599 30,370 43,680 45,010 6036 Dental Insurance 1,171 1,170 1,170 1,180 6037 Term Life 36 60 60 60 6038 Workers Compensation 2,328 2,560 2,560 2,880 6040 Long Term Disability 290 290 490 500 6051 Interdepartmental Labor 7,133 5,100 5,100 5,200 Personal Services Total $ 406,127 $ 439,410 $ 447,130 $ 461,820 Other Services & Charges 6103 Professional Services -General $ 5,799 $ 6,200 $ 5,900 $ 6,000 6202 Data Processing Rental 22,990 22,970 24,410 25,240 6205 Maintenance & Repairs 7,106 3,100 3,000 3,100 6207 Utility Services 24,178 23,000 25,000 26,000 6301 Advertising & Publication 8,976 6,100 7,000 7,200 6302 Communications 1,087 1,350 1,100 1,200 6303 Professional Development 8 100 100 100 6305 Subscriptions & Memberships 125 100 100 100 6307 Insurance & Bonds 13,913 13,900 13,110 13,500 6308 Property Liability 2,870 2,960 2,960 3,050 6310 Taxes & Licenses 538 590 590 600 6315 Other Contractual Services 8,409 10,500 8,700 9,000 6401 Office Supplies 958 1,000 1,000 1,100 6402 Copy Charges 56 70 60 60 6409 Uniforms & Clothing 1,286 - 1,000 1,000 6414 Other Supplies 12,070 11,200 11,500 11,800 6513 Other Charges 64,344 61,000 65,500 66,000 Other Services & Charges Total $ 174,713 $ 164,140 $ 171,030 $ 175,050 Depreciation 6610 Depreciation $ 47,019 $ 57,600 $ 75,340 $ 75,550 Depreciation Total $ 47,019 $ 57,600 $ 75,340 $ 75,550 -153- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: CEDAR LIQUOR STORE - 50020 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Other Financing Uses 8511 Operating Transfers Out $ 95,971 Other Financing Uses Total $ 95,971 CEDAR LIQUOR STORE TOTAL $ 3,837,730 ail L`TG,V VV yl JV,VVV N7 L'T J,VJV $ 4,075,140 $ 4,127,080 $ 4,526,410 - 154 - FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: CEDAR LIQUOR STORE - 50020 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Liquor Operation Director M-4 .25 .25 .25 Liquor Store Manager M-1 1.00 1.00 1.00 Liquor Account Clerk GS-3 .25 .25 .25 Total 1.50 1.50 1.50 Part -Time Employees Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Total 3.00 3.00 3.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET NONE $ - $ - $ - Total $ - $ - $ - -155- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: PENN LIQUOR STORE - 50030 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Liquor Sales 5005 Sales - Liquor $ 601,199 $ 809,000 $ 719,260 $ 769,600 5010 Sales - Wine 538,622 686,740 655,480 701,380 5015 Sales - Beer 794,280 1,043,580 935,040 1,000,490 5025 Sales - Cigarettes 31,886 50,200 45,560 48,740 5030 Sales - Food 6,593 9,530 8,630 9,240 5035 Sales- Other 25,368 37,620 33,560 35,910 Liquor Sales Total $ 1,997,948 $ 2,636,670 $ 2,397,530 $ 2,565,360 Other Income 8011 Investment Earnings $ - $ 250 $ - $ 250 8032 Commissions 2,743 3,250 3,000 3,100 8033 Cash/Over Short (433) 100 100 100 8035 Other Miscellaneous Revenues 1,784 200 100 100 8040 Sales - Lottery Commissions 3,677 4,780 3,700 3,800 Other Income Total $ 7,771 $ 8,580 $ 6,900 $ 7,350 Other Financing Sources 8051 Operating Transfers In $ 35,000 $ - $ - $ - Other Financing Sources Total $ 35,000 $ - $ - $ - PENN LIQUOR STORE TOTAL $ 2,040,719 $ 2,645,250 $ 2,404,430 $ 2,572,710 -156- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: PENN LIQUOR STORE - 50030 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Costs of Goods Sold 5510 Purchases for Resale Costs of Goods Sold Total Personal Services 6005 Full Time 6006 Part-time 6007 Seasonal 6009 Overtime 6013 Longevity 6031 Employer Social Security 6032 Employer Medicare 6033 Employer Pera 6035 Medical Insurance 6036 Dental Insurance 6037 Term Life 6038 Workers Compensation 6040 Long Term Disability 6051 Interdepartmental Labor Personal Services Total Other Services & Charges 6103 Professional Services -General 6202 Data Processing Rental 6205 Maintenance & Repairs 6207 Utility Services 6301 Advertising & Publication 6302 Communications 6303 Professional Development 6305 Subscriptions & Memberships 6307 Insurance & Bonds 6308 Property Liability 6310 Taxes & Licenses 6315 Other Contractual Services 6401 Office Supplies 6402 Copy Charges 6403 Postage 6409 Uniforms & Clothing 6414 Other Supplies 6513 Other Charges Other Services & Charges Total Depreciation 6610 Depreciation $ 1,475,141 $ 1,981,090 $ 1,798,150 $ 1,924,020 $ 1,475,141 $ 1,981,090 $ 1,798,150 $ 1,924,020 $ 114,880 $ 125,560 $ 119,250 $ 122,820 68,313 69,730 70,790 72,200 72,005 87,940 74,160 75,640 880 1,300 900 950 931 1,200 1,180 1,200 15,834 17,560 16,060 16,370 3,703 4,100 3,750 3,820 (769) 21,240 15,980 16,370 22,440 15,970 21,780 26,570 1,085 1,070 1,170 1,180 31 60 60 60 2,160 1,930 1,930 2,500 132 140 400 420 4 9 onn A 4 nn A 4 nn A Inn 5,078 22,440 4,746 17,602 7,293 1,534 8 61 11,416 3,210 538 8,030 1,321 29 11 970 11,736 01) G402 (1% .1 00 cnn N 4,650 $ 23,120 3,100 17,000 4,650 1,600 100 40 11,450 3,310 590 9,000 1,250 90 6,000 40,500 4')G ACn C% 5,000 23,320 2,500 16,000 5,500 1,500 100 50 10,810 3,310 550 8,000 1,400 50 20 1,000 6,000 4 A nnn 5,200 23,790 2,700 16,200 5,800 1,550 100 50 11,140 3,410 570 8,100 1,450 50 20 1,000 6,100 oc nnn $ 37,868 $ 46,800 $ 61,220 $ 61,380 -157- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: PENN LIQUOR STORE - 50030 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Depreciation Total $ 37,868 $ 46,800 $ 61,220 $ 61,380 Other Financing Uses 8511 Operating Transfers Out $ 77,987 $ 197,320 $ 80,320 $ 199,730 Other Financing Uses Total $ 77,987 $ 197,320 $ 80,320 $ 199,730 PENN LIQUOR STORE TOTAL $ 2,035,129 $ 2,703,560 $ 2,390,310 $ 2,651,660 -158- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: PENN LIQUOR STORE - 50030 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Liquor Operation Director M-4 .25 .25 .25 Liquor Store Manager M-L 1.00 1.00 1.00 Liquor Account Clerk GS-3 .25 .25 .25 Total 1.50 1.50 1.50 Part -Time Employees Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Total 2.00 2.00 2.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -159- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: WINE & SPIRITS - 50040 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Liquor Sales 5005 Sales - Liquor $ 555,453 $ 506,500 $ 596,380 $ 638,120 5010 Sales - Wine 314,886 355,320 387,480 414,600 5015 Sales - Beer 588,619 570,370 623,330 666,960 5025 Sales - Cigarettes 35,022 38,230 37,060 39,660 5030 Sales - Food 8,021 7,640 8,420 9,010 5035 Sales- Other 29,521 28,100 32,000 34,250 Liquor Sales Total $ 1,531,522 $ 1,506,160 $ 1,684,670 $ 1,802,600 Other Income 8011 Investment Earnings $ - $ 250 $ - $ 250 8032 Commissions 3,155 3,200 3,200 3,300 8033 Cash/Over Short (241) 100 100 100 8035 Other Miscellaneous Revenues 1,787 1,700 1,200 1,300 8040 Sales - Lottery Commissions 2,466 3,120 2,500 2,600 Other Income Total $ 7,167 $ 8,370 $ 7,000 $ 7,550 Other Financing Sources 8051 Operating Transfers In $ 35,000 $ - $ - $ - Other Financing Sources Total $ 35,000 $ - $ - $ - WINE & SPIRITS TOTAL $ 1,573,689 $ 1,514,530 $ 1,691,670 $ 1,810,150 -160- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: WINE & SPIRITS - 50040 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Costs of Goods Sold 5510 Purchases for Resale $ 1,157,129 $ 1,131,960 $ 1,263,500 $ 1,351,950 Costs of Goods Sold Total $ 1,157,129 $ 1,131,960 $ 1,263,500 $ 1,351,950 Personal Services 6005 Full Time $ 83,562 $ 83,330 $ 86,950 $ 94,160 6006 Part-time 65,108 74,410 67,060 68,400 6007 Seasonal 38,695 36,250 40,630 42,660 6009 Overtime 573 400 600 620 6013 Longevity 469 350 360 370 6031 Employer Social Security 11,718 12,120 11,700 12,370 6032 Employer Medicare 2,740 28,350 2,730 2,890 6033 Employer Pera 6,029 14,660 12,400 12,950 6035 Medical Insurance 26,082 20,480 27,660 30,690 6036 Dental Insurance 797 860 860 860 6037 Term Life 25 50 50 50 6038 Workers Compensation 1,512 1,530 1,530 1,450 6040 Long Term Disability 80 90 250 300 6051 Interdepartmental Labor 6,620 3,200 5,100 5,300 Personal Services Total $ 244,010 $ 276,080 $ 257,880 $ 273,070 Other Services & Charges 6103 Professional Services -General $ 1,898 $ 1,950 $ 1,950 $ 2,100 6202 Data Processing Rental 9,760 - 10,720 11,570 6205 Maintenance & Repairs 7,544 2,800 6,200 6,400 6207 Utility Services 22,043 21,500 21,500 22,000 6301 Advertising & Publication 2,805 2,000 2,000 2,200 6302 Communications 848 850 860 880 6303 Professional Development 8 100 100 100 6305 Subscriptions & Memberships 23 20 30 30 6307 Insurance & Bonds 6,254 6,400 6,190 6,370 6308 Property Liability 2,870 2,960 2,960 3,050 6310 Taxes & Licenses 997 1,000 1,200 1,250 6315 Other Contractual Services 9,025 4,650 7,500 7,550 6401 Office Supplies 635 450 450 450 6402 Copy Charges 21 40 40 40 6409 Uniforms & Clothing 817 - 900 920 6414 Other Supplies 11,382 6,100 6,100 6,200 6513 Other Charges 24,992 24,000 25,500 26,000 Other Services & Charges Total $ 101,922 $ 74,820 $ 94,200 $ 97,110 Depreciation 6610 Depreciation $ 43,358 $ 18,000 $ 23,540 $ 23,610 Depreciation Total $ 43,358 $ 18,000 $ 23,540 $ 23,610 - 161 - FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: WINE & SPIRITS - 50040 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Capital Outlay 7230 Building Improvements $ - $ - $ 150,000 $ - 7400 Machinery & Equipment - - 6,000 - Capital Outlay Total $ - $ - $ 156,000 $ - Other Financing Uses 8511 Operating Transfers Out $ 29,991 $ 75,890 $ 30,890 $ 76,820 Other Financing Uses Total $ 29,991 $ 75,890 $ 30,890 $ 76,820 WINE & SPIRITS TOTAL $ 1,576,410 $ 1,576,750 $ 1,826,010 $ 1,822,560 -162- FUND: LIQUOR OPERATIONS FUND DEPARTMENT: Liquor Operations BUSINESS UNIT: WINE & SPIRITS - 50040 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Liquor Operation Director M-4 .25 .25 .25 Liquor Store Manager M-L 1.00 1.00 1.00 Liquor Account Clerk GS-3 .25 .25 .25 Total 1.50 1.50 1.50 Part -Time Employees Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Liquor Operations Shift Leader GS-2 1.00 1.00 1.00 Total 2.00 2.00 2.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET Roof Replacement $ - $ 150,000 $ - Baler - 6,000 - Total $ - $ 156,000 $ - -163- FUND: WATER AND WASTEWATER UTILITIES DEPARTMENT: Public Works DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019B (Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 51000 WATER UTILITY $ 4,137,350 $ 6,248,950 $ 6,549,270 $ 6,153,930 (1.52%) 52000 WASTEWATER UTILITY 4,091,237 4,562,000 4,577,000 4,499,580 (1.37%) Public Works TOTAL $ 8,228,587 $ 10,810,950 $ 11,126,270 $ 10,653,510 (1.46%) REVENUES 51000 WATER UTILITY $ 5,232,631 $ 4,433,000 $ 4,458,000 $ 4,631,450 4.48% 52000 WASTEWATER UTILITY 5,188,605 4,781,210 4,792,710 4,940,250 3.33% $7,000,000 E $6,000,000 X $5,000,000 P E N $4,000,000 S E $3,000,000 S $2,000,000 $1,000,000 $0 WATER AND WASTEWATER UTILITY 2018 2019B 2019R 2020B u yFl ❑ W ate r ❑ Wastewater - 164 - BUDGET SUMMARY WATER AND WASTEWATER FUND PROJECTION 2018 2019 2020 2021 AVAILABLE FOR APPROPRIATION Actual Revised Budget Projected PRIOR YEAR RETAINED EARNINGS $ 15,647,182 $ 17,839,830 $ 18,921,340 $ 20,138,760 Revenues Charges for Service: Water & Wastewater Usage 8,648,729 9,083,460 9,402,450 9,684,520 Miscellaneous Revenues Interest 74,943 52,000 54,000 56,000 Other Revenues 109,828 115,250 115,250 120,250 Total Miscellaneous Revenues 184,771 167,250 169,250 176,250 Total Revenues 8,833,500 9,250,710 9,571,700 9,860,770 Expenses Personal Services 2,160,927 2,184,810 2,339,390 2,409,570 Other Services and Charges 4,753,196 4,622,360 4,600,530 4,779,310 Interest 114,229 121,070 196,590 169,800 Total Operating Expenses 7,028,352 6,928,240 7,136,510 7,358,680 Net Income before Depreciation 1,805,148 2,322,470 2,435,190 2,502,090 Depreciation 1,200,236 1,240,960 1,217,770 1,254,300 Net Income (Loss) 604,912 1,081,510 1,217,420 1,247,790 Capital Contributions 1,587,736 - - - RETAINED EARNINGS 17,839,830 18,921,340 20,138,760 21,386,550 BOND PRINCIPAL * $ - $ 375,000 $ 390,000 $ 485,000 INTERNAL LOAN PAYMENT* $ - $ 107,070 $ 109,230 $ - CAPITAL OUTLAY ** $ - $ 2,475,000 $ 1,800,000 $ - * Bonds and internal loans are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. -165- BUDGET SUMMARY WATER AND WASTEWATER FUND PROJECTION 2018 2019 2020 2021 CASH FLOW SUMMARY Actual Revised Budget Projected SOURCES OF CASH Total Revenues $ 8,833,500 $ 9,250,710 $ 9,571,700 $ 9,860,770 Items not requiring cash: Depreciation 1,200,236 1,240,960 1,217,770 1,254,300 Increase in Payables 9,859 - - - TOTAL SOURCES 10,043,595 10,491,670 10,789,470 11,115,070 USES OF CASH Total Expenses 8,114,359 8,048,130 8,157,690 8,443,180 Increase in Receivables 151,125 - - - CapitalOutlay 516,426 2,475,000 1,800,000 - Interenal Loan Payments 317,461 107,070 109,230 - Bond Principal Payments 370,000 375,000 390,000 485,000 Interest Payments 137,488 121,070 196,590 169,800 TOTAL USES 9,606,859 11,126,270 10,653,510 9,097,980 NET INCREASE (DECREASE) IN CASH 436,736 (634,600) 135,960 2,017,090 CASH BALANCE - JANUARY 1 2,768,076 3,204,812 2,570,212 2,706,172 CASH BALANCE - DECEMBER 31 $ 3,204,812 $ 2,570,212 $ 2,706,172 $ 4,723,262 CASH TO BE AVAILABLE Current Assets - December 31 $ 5,955,324 Less: Current Liabilities - Dec. 31 794,564 CASH TO BE AVAILABLE $ 5,160,760 -166- BUDGET SUMMARY WATER FUND PROJECTION 2018 2019 2020 2021 AVAILABLE FOR APPROPRIATION Actual Revised Budget Projected PRIOR YEAR RETAINED EARNINGS $ 11,804,831 $ 12,900,112 $ 13,380,912 $ 13,857,662 Revenues Water Usage Miscellaneous Revenues Interest Other Revenues Total Miscellaneous Revenues Total Revenues Expenses Personal Services Other Services and Charges Interest Total Operating Expenses Net Income before Depreciation Depreciation Net Income (Loss) Capital Contributions RETAINED EARNIN BOND PRINCIPAL * INTERNAL LOAN PAYMENT* CAPITAL OUTLAY ** $ 4,002,853 $ 4,301,500 $ 4,474,950 $ 4,609,200 59,105 42,000 42,000 43,000 99,301 114,500 114,500 119,500 158,406 156,500 156,500 162,500 4,161,259 4,458,000 4,631,450 4,771,700 1,224,685 1,192,250 1,268,020 1,306,060 1,758,751 1,611,750 1,703,260 1,745,840 114,229 121,070 154,620 134,700 3,097,665 2,925,070 3,125,900 3,186,600 1,063,594 1,532,930 1,505,550 1,585,100 1,039,685 1,052,130 1,028,800 1,059,670 23,909 480,800 476,750 525,430 1,071,372 - - - 12,900,112 13,380,912 13,857,662 14,383,092 $ - $ 375,000 $ 390,000 $ 445,000 $ - $ 107,070 $ 109,230 $ - $ - $ 2,090,000 $ 1,500,000 $ - * Bonds and internal loans are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. -167- WATER UTILITY DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To provide dependable, quality, high-grade softened water to the City of Richfield. Water is supplied by operating a 14 million -gallon per day lime softening plant 24 hours a day, 365 days per year. The water is delivered to 10,820 services by a 116-mile piping system that ranges in size from 4 inches to 24 inches in diameter. The piping system services two towers that store 2.5 million gallons of water, 1,062 hydrants, and approximately 2,460 valves. The division also produces the annual Consumer Confidence Report and distributes the report to all residents and businesses. 2019 HIGHLIGHTS • Completed the installation of water main replacement with the Lyndale Avenue reconstruction (City Council Goal 1). • Continued with nonintrusive (acoustic testing) water main inspection in order to gather information on the state of the City's water mains (City Council Goal 1). • Determined future emergency water interconnect(s) (City Council Goal 1). • Lined the 3 water main crossings under 35W & 65t" Street (City Council Goal 1). • Started the Citywide water meter upgrade, ultimately enhancing the accuracy and efficiency of the water delivery service (City Council Goals 1 & 6). • Developed a plan for resilience of our water infrastructure (City Council Goals 1 & 6). 2020 GOALS • Continue the Citywide water meter upgrade, ultimately enhancing the accuracy and efficiency of the water delivery service (City Council Goals 1 & 6). • Complete the planning for the City's emergency water interconnect project (City Council Goal 1). - 168 - • Continue with nonintrusive (acoustic testing) water main inspection in order to gather information on the state of the City's water mains (City Council Goal 1). • Upgrade filter presses and the sludge tank mixers at the water treatment plant (City Council Goals 1 & 6). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects an increase of 4.8% from the 2019 Adopted Budget due to an increase in Professional Services (6103) for the emergency interconnect study and Machinery and Equipment (7400) for the water meter replacement project. The 2020 Proposed Budget reflects a decrease of 1.5% from the 2019 Adopted Budget due to a decrease in capital outlay. -169- FUND: WATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WATER UTILITY - 51000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET License & permits 4164 Water Permit $ 2,000 $ 2,500 $ 2,500 $ 2,500 License & permits Total $ 2,000 $ 2,500 $ 2,500 $ 2,500 Intergovernmental Revenues 4244 Grants Other $ 10,000 $ - $ 10,000 $ - Intergovernmental Revenues Total $ 10,000 $ - $ 10,000 $ - Special Assessments 4730 Special Assessments -Delinquent $ 2,791 $ - $ - $ - 4740 Special Assessments -Penalty & 3,790 4,500 4,500 4,500 Special Assessments Total $ 6,581 $ 4,500 $ 4,500 $ 4,500 Utility Revenues 4812 Metered Water - Tax Exempt $ 3,019,064 $ 3,469,000 $ 3,469,000 $ 3,642,450 4814 Metered Water 502,741 455,000 455,000 455,000 4816 Water Service Charges 435,536 350,000 350,000 350,000 4818 Other Water Charges/Services 25,816 12,500 12,500 12,500 4848 Certification Fee 11,115 12,500 12,500 12,500 Utility Revenues Total $ 3,994,272 $ 4,299,000 $ 4,299,000 $ 4,472,450 Other Income 8011 Investment Earnings $ 59,105 $ 42,000 $ 42,000 $ 42,000 8031 Contributions & Donations 1,071,372 - - - 8035 Other Miscellaneous Revenues 89,301 85,000 100,000 110,000 Other Income Total $ 1,219,778 $ 127,000 $ 142,000 $ 152,000 WATER UTILITY TOTAL $ 5,232,631 $ 4,433,000 $ 4,458,000 $ 4,631,450 -170- FUND: WATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WATER UTILITY - 51000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 678,779 $ 674,870 $ 667,960 $ 711,620 6006 Part-time - 5,630 - - 6007 Seasonal 33,215 16,440 28,770 29,630 6009 Overtime 30,832 22,500 22,500 22,500 6031 Employer Social Security 44,845 44,800 43,080 45,820 6032 Employer Medicare 10,484 9,760 10,080 10,710 6033 Employer Pera 96,967 52,890 50,860 54,170 6035 Medical Insurance 102,117 112,260 104,860 115,980 6036 Dental Insurance 7,063 7,330 7,210 7,230 6037 Term Life 207 430 400 400 6038 Workers Compensation 27,276 35,210 35,210 35,400 6040 Long Term Disability 1,308 1,220 1,340 1,390 6051 Interdepartmental Labor 23,672 45,750 47,000 55,000 6052 Administrative Charges 167,920 172,980 172,980 178,170 Personal Services Total $ 1,224,685 $ 1,202,070 $ 1,192,250 $ 1,268,020 Other Services & Charges 6103 Professional Services -General $ 233,491 $ 150,630 $ 173,950 $ 144,660 6201 Rents & Leases - 1,750 1,750 1,750 6202 Data Processing Rental 46,140 47,070 47,450 48,390 6204 Motor Pool Operating Rental 33,970 40,760 40,760 41,980 6205 Maintenance & Repairs 526,122 288,500 308,500 366,000 6207 Utility Services 277,594 278,220 278,220 290,000 6301 Advertising & Publication 208 11,500 11,500 12,000 6302 Communications 10,596 11,500 11,500 11,500 6303 Professional Development 8,874 7,250 8,250 9,250 6305 Subscriptions & Memberships 4,025 5,650 5,650 5,650 6307 Insurance & Bonds 36,786 36,100 36,760 37,870 6308 Property Liability 30,640 31,660 31,660 32,610 6310 Taxes & Licenses 12,654 15,250 15,250 15,250 6315 Other Contractual Services 5,030 1,750 1,750 1,750 6401 Office Supplies 1,222 12,000 6,000 6,000 6402 Copy Charges 430 500 500 500 6403 Postage 1,124 4,500 3,000 3,000 6409 Uniforms & Clothing 4,613 4,900 5,800 5,800 6410 Small Tools & Parts 31,615 72,000 84,000 97,000 6412 Maint. & Const. Materials 51,000 63,500 63,500 83,500 6413 Chemicals 409,254 423,700 400,300 413,100 6414 Other Supplies 8,434 42,200 43,700 44,700 6513 Other Charges 24,929 32,000 32,000 31,000 Other Services & Charges Total $ 1,758,751 $ 1,582,890 $ 1,611,750 $ 1,703,260 NVAE FUND: WATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WATER UTILITY - 51000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Depreciation 6610 Depreciation $ 1,039,685 $ 1,010,000 $ 1,052,130 $ 1,028,800 Depreciation Total $ 1,039,685 $ 1,010,000 $ 1,052,130 $ 1,028,800 Capital Outlay 7230 Building Improvements $ - 7400 Machinery & Equipment - Capital Outlay Total $ - Other Financing Uses 8511 Operating Transfers Out $ - 8521 Principal Payments - 8522 Interest Payments 113,004 8523 Paying Agent Fees 1,225 Other Financing Uses Total $ 114,229 WATER UTILITY TOTAL $ 4,137,350 $ 22,500 $ - $ - 1,775,000 2,090,000 1,500,000 $ 50,000 $ - $ - 482,070 482,070 499,230 123,190 119,840 153,390 $ 656,490 $ 603,140 $ 653,850 $ 6,248,950 $ 6,549,270 $ 6,153,930 Emm FUND: WATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WATER UTILITY - 51000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Utility Superintendent M-3 .50 .50 .50 Utility Supervisor M-1 .50 .50 .50 Utility Supervisor/Engineer M-2 .35 .35 .35 Water Plant Operator LT-5 4.00 4.00 4.00 Water Plant Mechanic LT-5 2.00 2.00 2.00 Public Works Worker LT-1 2.00 2.00 2.00 Utility Billing Clerk GS-3 .40 .40 .40 GIS Analyst/IT Technician GS-5 .15 .15 .15 Senior Office Assistant GS-2 .15 .15 .15 Total 10.05 10.05 10.05 Part -Time Employees Utility Billing Assistant SP-13 - .25 .25 Total - .25 .25 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET Wellhouse security improvements $ 12,500 $ - $ - Safety Improvements 10,000 - - Water Meter Upgrade 1,025,000 1,340,000 1,340,000 Emergency Interconnect 750,000 - - 35W WM Crossings Lining - 750,000 - Sludge Mixer - - 90,000 Filter Press Rehab - - 70,000 Total $ 1,797,500 $ 2,090,000 $ 1,500,000 -173- G.O. WATER REVENUE BONDS, SERIES 2011A SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2019 PAYMENT UNPAID YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL $ 1,055,000 2020 $ 65,000 $ 38,150 $ 103,150 990,000 2021 70,000 36,123 106,123 920,000 2022 70,000 33,952 103,952 850,000 2023 70,000 31,660 101,660 780,000 2024 75,000 29,159 104,159 705,000 2025 75,000 26,477 101,477 630,000 2026 80,000 23,610 103,610 550,000 2027 85,000 20,494 105,494 465,000 2028 85,000 17,221 102,221 380,000 2029 90,000 13,763 103,763 290,000 2030 95,000 10,016 105,016 195,000 2031 95,000 6,121 101,121 100,000 2032 100,000 2,075 102,075 - $ 1,055,000 $ 288,821 $ 1,343,821 - 174 - GENERAL OBLIGATION REFUNDING BONDS, SERIES 2015B SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2018 PAYMENT YEAR PRINCIPAL INTEREST 2020 $ 325,000 $ 70,280 2021 335,000 60,375 2022 340,000 50,250 2023 355,000 39,825 2024 370,000 28,950 2025 380,000 19,600 2026 390,000 11,900 2027 400,000 4,000 $ 2,895,000 $ 285,180 UNPAID TOTAL PRINCIPAL $ 2,895,000 $ 395,280 2,570,000 395,375 2,235,000 390,250 1,895,000 394,825 1,540,000 398,950 1,170,000 399,600 790,000 401,900 400,000 404,000 - $ 3,180,180 - 175 - WATER GENERAL OBLIGATION BONDS, SERIES 2019A SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PAYMENT UNPAID YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL $ 1,175,000 2020 $ - $ 44,960 $ 44,960 1,175,000 2021 40,000 38,200 78,200 1,135,000 2022 40,000 36,600 76,600 1,095,000 2023 45,000 34,900 79,900 1,050,000 2024 45,000 33,100 78,100 1,005,000 2025 50,000 31,200 81,200 955,000 2026 50,000 29,200 79,200 905,000 2027 50,000 27,200 77,200 855,000 2028 55,000 25,100 80,100 800,000 2029 55,000 23,175 78,175 745,000 2030 60,000 21,450 81,450 685,000 2031 60,000 19,650 79,650 625,000 2032 60,000 17,850 77,850 565,000 2033 65,000 15,975 80,975 500,000 2034 65,000 14,025 79,025 435,000 2035 65,000 12,075 77,075 370,000 2036 70,000 10,050 80,050 300,000 2037 70,000 7,950 77,950 230,000 2038 75,000 5,775 80,775 155,000 2039 75,000 3,525 78,525 80,000 2040 80,000 1,200 81,200 - $ 1,175,000 $ 453,160 $ 1,628,160 E� BUDGET SUMMARY WASTEWATER UTILITY FUND PROJECTION 2018 2019 2020 2021 AVAILABLE FOR APPROPRIATION Actual Revised Budget Projected PRIOR YEAR RETAINED EARNINGS $ 3,842,350 $ 4,939,718 $ 5,540,428 $ 6,281,098 Revenues Sewer Usage 4,645,876 4,781,960 4,927,500 5,075,320 Miscellaneous Revenues Interest 15,838 10,000 12,000 13,000 Other Revenues 10,527 750 750 750 Total Miscellaneous Revenues 26,365 10,750 12,750 13,750 Total Revenues 4,672,241 4,792,710 4,940,250 5,089,070 Expenses Personal Services 936,241 992,560 1,071,370 1,103,510 Other Services and Charges 2,994,445 3,010,610 2,897,270 3,033,470 Interest - - 41,970 35,100 Operating Expenses 3,930,686 4,003,170 4,010,610 4,172,080 Net Income before Depreciation 741,555 789,540 929,640 916,990 Depreciation 160,551 188,830 188,970 194,640 Net Income (Loss) 581,004 600,710 740,670 722,350 Capital Contributions 516,364 - - - RETAINED EARNINGS 4 939 718 5 540 428 6 281 098 7 003 448 BOND PRINCIPAL * $ - $ - $ - $ 40,000 CAPITAL OUTLAY ** $ - $ 385,000 $ 300,000 $ - * Bonds are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. -177- WASTEWATER UTILITY DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To provide the collection and responsible disposal of wastewater from the community with minimal inconvenience to residents and businesses. The division focus is operation and maintenance of a 100-mile collection system consisting of pipe in diameter from 9 inches to 36 inches. This collection system serves approximately 10,820 services. This division also operates a series of 9 sanitary sewer lift stations that lift wastewater from low areas to a higher elevation where it flows by gravity to the Metropolitan Council Environmental Services (MCES) wastewater system. 2019 HIGHLIGHTS • Completed sanitary sewer system risk assessment (City Council Goal 1). • Completed the installation of the sanitary sewer main replacement as part of the Lyndale Avenue Reconstruction Project. On this project, the City removed dual sanitary lines and replaced with a single sanitary line (City Council Goal 1). • Completed the Lift Station #3 control panel replacement (City Council Goal 1). • Continued the sanitary sewer main lining (City Council Goals 1 & 6). • Continued to be aggressive with maintenance on the wastewater collection system by jetting/proofing the entire city on an annual basis, including televising and root sawing (City Council Goals 1 & 6). • Implemented a Fats, Oils, and Grease (FOG) ordinance (City Council Goals 1 & 6). 2020 GOALS • Install safety grates on lift station hatches (City Council Goals 1 & 6). • Continue the sanitary sewer main lining (City Council Goals 1 & 6). • Continue to be aggressive with maintenance on the wastewater collection system by jetting/proofing the entire City on an annual basis, including televising and root sawing (City Council Goals 1 & 6). -178- • Update Inflow/Infiltration (I&I) ordinances in accordance with the Sanitary Sewer Comprehensive Plan (City Council Goal 1). DIVISION EXPENDITURE COMMENT The majority of the Wastewater Division expenditures are to the Metropolitan Council Environmental Services (MCES) which provides wastewater treatment services for the City of Richfield. The 2019 charge from MCES is $2,681,944 which represents approximately 60% of the total wastewater budget, and the 2020 is $2,550,771 which is also approximately 60% of the total budget. The decreasing MCES charge is a result of declining wastewater output, even while the MCES rates increase. The 2019 Revised Budget reflects an increase of 0.3% from the 2019 Adopted Budget due to capital improvements. The 2020 Proposed Budget reflects a decrease of 1.4% from the 2019 Adopted Budget. The decrease is due to declining MCES charges and professional service expenditures. N" FUND: WASTEWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WASTEWATER UTILITY - 52000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET License & permits 4162 Sewer Permit $ 12,580 $ 8,500 $ 10,500 $ 10,500 License & permits Total $ 12,580 $ 8,500 $ 10,500 $ 10,500 Utility Revenues 4832 Sewer Charges $ 4,613,348 $ 4,754,460 $ 4,754,460 $ 4,900,000 4836 Other Sewer Charges/Services - 500 500 500 4838 Sewer Availability Charge 8,573 4,000 4,000 4,000 4848 Certification Fee 11,375 12,500 12,500 12,500 Utility Revenues Total $ 4,633,296 $ 4,771,460 $ 4,771,460 $ 4,917,000 Other Income 8011 Investment Earnings $ 15,838 $ 500 $ 10,000 $ 12,000 8031 Contributions & Donations 516,364 - - - 8035 Other Miscellaneous Revenues 10,527 750 750 750 Other Income Total $ 542,729 $ 1,250 $ 10,750 $ 12,750 WASTEWATER UTILITY TOTAL $ 5,188,605 $ 4,781,210 $ 4,792,710 $ 4,940,250 -180- FUND: WASTEWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WASTEWATER UTILITY - 52000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 505,188 $ 489,720 $ 521,040 $ 567,800 6006 Part-time - 5,630 - - 6007 Seasonal 16,269 17,540 29,200 30,080 6009 Overtime 21,341 16,000 16,000 16,000 6031 Employer Social Security 32,072 30,750 33,090 35,870 6032 Employer Medicare 7,497 7,130 7,740 8,390 6033 Employer Pera 51,428 36,580 39,850 43,380 6035 Medical Insurance 93,565 100,540 97,390 106,710 6036 Dental Insurance 5,248 5,480 5,770 5,790 6037 Term Life 159 330 320 320 6038 Workers Compensation 9,900 10,850 10,850 12,800 6040 Long Term Disability 979 900 1,030 1,060 6051 Interdepartmental Labor 24,675 57,200 57,300 65,000 6052 Administrative Charges 167,920 172,980 172,980 178,170 Personal Services Total $ 936,241 $ 951,630 $ 992,560 $ 1,071,370 Other Services & Charges 6103 Professional Services -General $ 49,103 $ 109,000 $ 69,310 $ 65,520 6201 Rents & Leases - 1,000 1,000 1,000 6202 Data Processing Rental 20,160 20,520 20,700 21,100 6204 Motor Pool Operating Rental 48,890 58,680 58,680 60,440 6205 Maintenance & Repairs 66,720 58,000 58,000 68,000 6207 Utility Services 15,739 19,000 19,000 19,000 6301 Advertising & Publication 173 100 100 100 6302 Communications 6,874 8,000 8,000 8,000 6303 Professional Development 6,824 11,000 8,000 9,000 6305 Subscriptions & Memberships - 250 250 250 6307 Insurance & Bonds 8,834 8,680 8,980 9,250 6308 Property Liability 6,120 6,300 6,300 6,490 6310 Taxes & Licenses - 200 200 200 6315 Other Contractual Services 18,562 12,860 12,850 12,850 6401 Office Supplies 116 100 100 100 6403 Postage - 100 100 100 6409 Uniforms & Clothing 4,003 4,500 4,500 4,500 6410 Small Tools & Parts 7,990 15,500 15,500 15,500 6412 Maint. & Const. Materials 9,267 33,000 25,000 33,000 6414 Other Supplies 3,066 12,100 12,100 12,100 Other Services & Charges Total $ 272,441 $ 378,890 $ 328,670 $ 346,500 MCES Charges 6601 MCES Charges $ 2,722,004 $ 2,681,950 $ 2,681,940 $ 2,550,770 MCES Charges Total $ 2,722,004 $ 2,681,950 $ 2,681,940 $ 2,550,770 - 181 - FUND: WASTEWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WASTEWATER UTILITY - 52000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Depreciation 6610 Depreciation $ 160,551 $ 179,530 $ 188,830 $ 188,970 Depreciation Total $ 160,551 $ 179,530 $ 188,830 $ 188,970 Capital Outlay 7230 Building Improvements $ - $ 60,000 $ - $ - 7350 Other Improvements - 200,000 300,000 300,000 7400 Machinery & Equipment - 60,000 85,000 - Capital Outlay Total $ - $ 320,000 $ 385,000 $ 300,000 Other Financing Uses 8511 Operating Transfers Out $ - $ 50,000 $ - $ - 8522 Interest Payments - - - 41,390 8523 Paying Agent Fees - - - 580 Other Financing Uses Total $ - $ 50,000 $ - $ 41,970 WASTEWATER UTILITY TOTAL $ 4,091,237 $ 4,562,000 $ 4,577,000 $ 4,499,580 -182- FUND: WASTEWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: WASTEWATER UTILITY - 52000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Utility Superintendent M-3 .50 .50 .50 Utility Supervisor M-1 .50 .50 .50 Utility Supervisor/Engineer M-2 .35 .35 .35 Public Works Worker LT-1 5.50 6.00 6.00 Utility Billing Clerk GS-3 .40 .40 .40 GIS Analyst/IT Technician GS-5 .15 .15 .15 Senior Office Assistant GS-2 .15 .15 .15 Total 7.55 8.05 8.05 Part -Time Employees Utility Billing Clerk SP-13 - .25 .25 Total - .25 .25 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET Woodlake Lift Station Upgrade $ 35,000 $ - $ - Building Improvements 60,000 - - Sewer Main Lining 200,000 300,000 300,000 Lift #3 Control Panel 25,000 30,000 - Generator 100 Kw - 55,000 - Total $ 320,000 $ 385,000 $ 300,000 -183- SEWER GENERAL OBLIGATION BONDS, SERIES 2019A SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PAYMENT UNPAID YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL $ 1,080,000 2020 $ - $ 41,390 $ 41,390 1,080,000 2021 40,000 35,100 75,100 1,040,000 2022 40,000 33,500 73,500 1,000,000 2023 40,000 31,900 71,900 960,000 2024 40,000 30,300 70,300 920,000 2025 45,000 28,600 73,600 875,000 2026 45,000 26,800 71,800 830,000 2027 50,000 24,900 74,900 780,000 2028 50,000 22,900 72,900 730,000 2029 50,000 21,150 71,150 680,000 2030 55,000 19,575 74,575 625,000 2031 55,000 17,925 72,925 570,000 2032 55,000 16,275 71,275 515,000 2033 60,000 14,550 74,550 455,000 2034 60,000 12,750 72,750 395,000 2035 60,000 10,950 70,950 335,000 2036 65,000 9,075 74,075 270,000 2037 65,000 7,125 72,125 205,000 2038 65,000 5,175 70,175 140,000 2039 70,000 3,150 73,150 70,000 2040 70,000 1,050 71,050 - $ 1,080,000 $ 414,140 $ 1,494,140 - 184 - FUND: STORMWATER UTILITY DEPARTMENT: Public Works DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 53000 STORMWATER UTILITY $ 1,800,398 $ 2,502,390 $ 2,767,040 $ 2,866,100 14.53% Public Works TOTAL $ 1,800,398 $ 2,502,390 $ 2,767,040 $ 2,866,100 14.53% REVENUES 53000 STORMWATER UTILITY $ 3,347,665 $ 1,791,920 $ 1,804,420 $ 1,917,130 6.99% $3,000,000 E $2,500,000 X P $2,000,000 E N $1,500,000 S E $1,000,000 S $500,000 $0 STORM SEWER UTILITY 2018 2019B 2019R 2020B YEAR - 185 - BUDGET SUMMARY STORMWATER UTILITY FUND PROJECTION 2018 2019 2020 2021 AVAILABLE FOR APPROPRIATION Actual Revised Budget Projected PRIOR YEAR RETAINED EARNINGS $ 6,205,893 $ 7,753,160 $ 7,465,540 $ 7,096,570 Revenues Storm Sewer Usage 1,768,394 1,617,010 1,727,230 1,779,050 Miscellaneous Revenues 209,858 187,410 189,900 206,350 Total Revenues 1,978,252 1,804,420 1,917,130 1,985,400 Expenses Personal Services 375,240 393,270 403,860 415,980 Other Services and Charges 678,462 866,430 1,034,290 1,065,320 Interest 142,567 151,520 171,310 156,500 Total Operating Expenses 1,196,269 1,411,220 1,609,460 1,637,800 Net Income before Depreciation 781,983 393,200 307,670 347,600 Depreciation 604,129 680,820 676,640 696,940 Net Income (Loss) 177,854 (287,620) (368,970) (349,340) Capital Contributions RETAINED EARNINGS BOND PRINCIPAL * CAPITAL OUTLAY ** 1,369,413 - $ - $ 375,000 $ 380,000 $ 420,000 $ - $ 300,000 $ 200,000 $ - * Bonds are not recorded as current expenses, but rather as adjustments to the cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. There is sufficient cash in the restricted assets to pay bonds and interest in the projected years. -186- BUDGET SUMMARY STORMWATER UTILITY FUND PROJECTION CASH FLOW SUMMARY Total Revenues Items not requiring cash: Depreciation TOTAL SOURCES USES OF CASH Total Expenses Increase in Receivables Decrease in Payables Capital Outlay Bond Principal Payment Interest Payments TOTAL USES NET INCREASE (DECREASE) IN CASH CASH BALANCE - JANUARY 1 CASH BALANCE - DECEMBER 31 CASH TO BE AVAILABLE Current Assets - December 31 Less: Current Liabilities - Dec. 31 CASH TO BE AVAILABLE 2018 2019 2020 2021 Actual Revised Budget Projected $ 1,978,252 $ 1,804,420 $ 1,917,130 $ 1,985,400 2,582,381 2,485,240 2,593,770 2,682,340 1,564,568 1,940,520 2,114,790 2,178,240 16,379 - - - 73 - - - 70,650 300,000 200,000 - 365,000 375,000 380,000 420,000 161,394 151,520 171,310 156,500 2,178,064 2,767,040 2,866,100 2,754,740 404,317 (281,800) (272,330) (72,400) 1,994,498 2,398,815 2,117,015 1,844,685 $ 2,398,815 $ 2,117,015 $ 1,844,685 $ 1,772,285 $ 2,772,029 654,536 $ 2,117,493 -187- STORM WATER UTILITY DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To provide flood protection and environmentally responsible treatment of storm water for the City of Richfield, as well as community outreach to residents and businesses on the impacts they have on the quality of ponds, lakes, and streams. The Division's mission is achieved by City of Richfield staff and contractors, who perform the following functions: • Responsibly maintaining Municipal Separate Storm Sewer Systems (MS4) permit from the Minnesota Pollution Control Agency (MPCA) for the operations of the City's storm water discharge program; • Active education and outreach activities; • Maintaining and operating ten storm water lift stations; • Contracting with the Street Division for the sweeping of streets to remove silt, organic matter, and phosphorus; • Water quality monitoring; • Operating and maintaining a flocculation treatment system for the removal of phosphorus to fulfill watershed reduction requirements; and • Improving the flood protection of property by upgrading the storm water system as opportunities arise. 2019 HIGHLIGHTS • Continued storm system condition assessment (City Council Goal 1). • Continued storm system manhole structure assessment and rehabilitation (City Council Goal 1). • Completed city wide water quality monitoring (City Council Goal 6). • Completed pond survey in preparation for dredging project (City Council Goal 1). - 188 - • Began targeted storm system improvements based on hydraulic/hydrologic model and Storm System Risk Assessment (City Council Goal 1). 2020 GOALS • Continue storm system condition assessment (City Council Goal 1). • Continue storm system manhole structure assessment and rehabilitation (City Council Goal 1). • Investigate opportunities for water quality improvements based on results of water quality model (City Council Goal 1). • Begin dredging of storm ponds (City Council Goal 1). • Continue targeted storm system improvements based on hydraulic/hydrologic model and Storm System Risk Assessment (City Council Goal 1). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects an increase of 1.3% from the 2019 Adopted Budget. This slight decrease is due to reductions in maintenance and repair and interest costs. The 2020 Proposed Budget reflects an increase from the 2019 Adopted Budget of 2.27%. This increase is a result of the planned increase in maintenance and repair costs for pond dredging and infrastructure improvements. MUTIM FUND: STORMWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: STORMWATER UTILITY - 53000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Intergovernmental Revenues 4290 Other Local Grants $ 2,112 $ - $ - $ - Intergovernmental Revenues Total $ 2,112 $ - $ - $ - Utility Revenues 4848 Certification Fee $ 2,326 $ 2,500 $ 2,500 $ 2,500 4852 Storm Drainage Fee 1,646,908 1,574,510 1,574,510 1,684,730 4854 Storm Drainage Service Charges 117,048 40,000 40,000 40,000 Utility Revenues Total $ 1,766,282 $ 1,617,010 $ 1,617,010 $ 1,727,230 Other Income 8011 Investment Earnings $ 33,202 $ 2,500 $ 15,000 $ 20,000 8031 Contributions & Donations 1,369,413 - - - 8035 Other Miscellaneous Revenues 176,656 172,410 172,410 169,900 Other Income Total $ 1,579,271 $ 174,910 $ 187,410 $ 189,900 STORMWATER UTILITY TOTAL $ 3,347,665 $ 1,791,920 $ 1,804,420 $ 1,917,130 -190- FUND: STORMWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: STORMWATER UTILITY - 53000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 59,431 $ 54,190 $ 53,790 $ 58,410 6031 Employer Social Security 4,046 3,330 3,330 3,620 6032 Employer Medicare 943 780 780 850 6033 Employer Pera 4,587 4,030 4,040 4,380 6035 Medical Insurance 9,317 7,480 7,460 8,300 6036 Dental Insurance 666 500 520 530 6037 Term Life 20 30 30 30 6038 Workers Compensation 1,884 2,140 2,140 1,980 6040 Long Term Disability 121 80 80 80 6051 Interdepartmental Labor 210,615 234,970 234,970 236,970 6052 Administrative Charges 83,610 86,130 86,130 88,710 Personal Services Total $ 375,240 $ 393,660 $ 393,270 $ 403,860 Other Services & Charges 6103 Professional Services -General $ 303,659 $ 196,030 $ 227,910 $ 188,720 6201 Rents & Leases - 5,500 5,500 5,500 6202 Data Processing Rental 11,030 11,230 11,320 11,540 6204 Motor Pool Operating Rental 109,490 114,900 114,900 118,350 6205 Maintenance & Repairs 156,156 411,750 367,250 570,250 6207 Utility Services 17,214 28,200 28,200 28,200 6301 Advertising & Publication 2,479 2,700 2,700 2,700 6302 Communications 522 1,600 1,600 1,600 6303 Professional Development - 1,880 1,880 1,880 6305 Subscriptions & Memberships 1,805 3,800 4,800 4,800 6307 Insurance & Bonds 1,994 1,960 2,220 2,290 6308 Property Liability 1,090 1,120 1,120 1,150 6310 Taxes & Licenses 1,305 3,000 3,000 3,000 6315 Other Contractual Services 50,867 46,620 46,620 46,900 6401 Office Supplies 181 150 150 150 6402 Copy Charges - 150 150 150 6403 Postage - 50 50 50 6410 Small Tools & Parts 166 4,500 4,500 4,500 6412 Maint. & Const. Materials 4,328 16,310 16,310 16,310 6413 Chemicals 15,671 30,000 25,000 25,000 6414 Other Supplies 505 1,250 1,250 1,250 Other Services & Charges Total $ 678,462 $ 882,700 $ 866,430 $ 1,034,290 Depreciation 6610 Depreciation $ 604,129 $ 649,510 $ 680,820 $ 676,640 Depreciation Total $ 604,129 $ 649,510 $ 680,820 $ 676,640 Capital Outlay 7350 Other Improvements $ - $ - $ 100,000 $ 200,000 - 191 - FUND: STORMWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: STORMWATER UTILITY - 53000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET 7400 Machinery & Equipment - - 200,000 - Capital Outlay Total $ - $ - $ 300,000 $ 200,000 Other Financing Uses 8511 Operating Transfers Out $ - $ 50,000 $ - $ - 8521 Principal Payments - 375,000 375,000 380,000 8522 Interest Payments 141,042 150,020 150,020 169,810 8523 Paying Agent Fees 1,525 1,500 1,500 1,500 Other Financing Uses Total $ 142,567 $ 576,520 $ 526,520 $ 551,310 STORMWATER UTILITY TOTAL $ 1,800,398 $ 2,502,390 $ 2,767,040 $ 2,866,100 -192- FUND: STORMWATER UTILITY DEPARTMENT: Public Works BUSINESS UNIT: STORMWATER UTILITY - 53000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Utility Supervisor/Engineer M-2 .30 .30 .30 Public Works Worker LT-1 .50 - - Utility Billing Clerk GS-3 .20 .20 .20 GIS Analyst/IT Technician GS-5 .20 .20 .20 Total 1.20 .70 .70 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET Manhole Structure Rehab $ - $ 100,000 $ 100,000 Storm Mains Rehab - - 100,000 Sweeper 200,000 200,000 - Total $ 200.000 $ 300.000 S 200.000 - 193 - STORM SEWER REVENUE BONDS, SERIES 2013B SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PAYMENT UNPAID YEAR PRINCIPAL INTEREST TOTAL PRINCIPAL $ 2,030,000 2020 $ 125,000 $ 44,905 $ 169,905 1,905,000 2021 130,000 42,355 172,355 1,775,000 2022 130,000 39,755 169,755 1,645,000 2023 135,000 37,105 172,105 1,510,000 2024 135,000 34,405 169,405 1,375,000 2025 140,000 31,655 171,655 1,235,000 2026 140,000 28,750 168,750 1,095,000 2027 145,000 25,686 170,686 950,000 2028 150,000 22,365 172,365 800,000 2029 150,000 18,840 168,840 650,000 2030 155,000 15,101 170,101 495,000 2031 160,000 11,085 171,085 335,000 2032 165,000 6,818 171,818 170,000 2033 170,000 2,295 172,295 - $ 2,030,000 $ 361,120 $ 2,391,120 - 194 - GENERAL OBLIGATION REFUNDING BONDS, SERIES 2015B SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PAYMENT YEAR PRINCIPAL INTEREST 2020 $ 135,000 $ 29,425 2021 140,000 25,300 2022 145,000 21,025 2023 150,000 16,600 2024 155,000 12,025 2025 160,000 8,100 2026 160,000 4,900 2027 165,000 1,650 $ 1,210,000 $ 119,025 UNPAID TOTAL PRINCIPAL $ 1,210,000 $ 164,425 1,075,000 165,300 935,000 166,025 790,000 166,600 640,000 167,025 485,000 168,100 325,000 164,900 165,000 166,650 - $ 1,329,025 - 195 - STORM SEWER REVENUE BONDS, SERIES 2016A SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PAYMENT YEAR PRINCIPAL INTEREST TOTAL 2020 $ 120,000 $ 65,620 $ 185,620 2021 125,000 61,940 186,940 2022 130,000 58,115 188,115 2023 130,000 54,215 184,215 2024 135,000 50,240 185,240 2025 140,000 46,115 186,115 2026 145,000 42,565 187,565 2027 150,000 39,615 189,615 2028 150,000 36,615 186,615 2029 155,000 33,565 188,565 2030 155,000 30,465 185,465 2031 160,000 27,235 187,235 2032 165,000 23,740 188,740 2033 165,000 20,028 185,028 2034 170,000 16,090 186,090 2035 175,000 11,863 186,863 2036 180,000 7,335 187,335 2037 185,000 2,497 187,497 $ 2,735,000 $ 627,858 $ 3,362,858 UNPAID PRINCIPAL $ 2,735,000 2,615,000 2,490,000 2,360,000 2,230,000 2,095,000 1,955,000 1,810,000 1,660,000 1,510,000 1,355,000 1,200,000 1,040,000 875,000 710,000 540,000 365,000 185,000 m•. PAYMENT YEAR 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 STORM SEWER GENERAL OBLIGATION BONDS, SERIES 2019A SCHEDULE OF DEBT SERVICE REQUIREMENTS DECEMBER 31, 2019 PRINCIPAL 25,000 30,000 30,000 30,000 30,000 35,000 35,000 35,000 40,000 40,000 40,000 40,000 40,000 45,000 45,000 45,000 45,000 50,000 50,000 50,000 $ 780,000 UNPAID INTEREST TOTAL PRINCIPAL $ 29,860 25,400 24,300 23,100 21,900 20,700 19,400 18,000 16,600 15,300 14,100 12,900 11,700 10,500 9,225 7,875 6,525 5,175 3,750 2,250 750 $ 299,310 $ 29,860 50,400 54,300 53,100 51,900 50,700 54,400 53,000 51,600 55,300 54,100 52,900 51,700 50,500 54,225 52,875 51,525 50,175 53,750 52,250 50,750 $ 1,079,310 $ 780,000 780,000 755,000 725,000 695,000 665,000 635,000 600,000 565,000 530,000 490,000 450,000 410,000 370,000 330,000 285,000 240,000 195,000 150,000 100,000 50,000 - 197 - FUND: CENTRAL GARAGE DEPARTMENT: Public Works DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 61000 CENTRAL GARAGE $ 2,000,854 $ 2,983,850 $ 2,867,480 $ 2,710,100 (9.17%) Public Works TOTAL $ 2,000,854 $ 2,983,850 $ 2,867,480 $ 2,710,100 (9.17%) REVENUES 61000 CENTRAL GARAGE $ 2,011,653 $ 2,186,970 $ 2,194,950 $ 2,248,010 2.79% $3,000,000 $2,700,000 $2,400,000 E $2,100,000 P $1,800,000 E N $1,500,000 S E $1,200,000 S $900,000 $600, 000 $300, 000 $0 CENTRAL GARAGE FUND 2018 2019B 2019R 2020B YEAR BUDGET SUMMARY CENTRAL GARAGE FUND PROJECTION AVAILABLE FOR APPROPRIATION 2018 2019 Actual Revised 2020 2021 Budget Projected PRIOR YEAR RETAINED EARNINGS $ 4,635,414 $ 4,646,213 $ 4,948,413 $ 5,366,323 Revenues Charges for Service: Equipment Rental Miscellaneous Revenues Interest Other Revenues Total Misc. Revenues Total Revenues Expenses Personal Services Other Services and Charges Operating Expenses Net Income before Depreciation Depreciation Net Income (Loss) Operating Transfers From (To) Capital Projects Funds RETAINED EARNINGS CAPITAL OUTLAY 1,192,520 1,272,570 1,310,010 1,349,308 19,561 10,500 11,000 12,000 144,572 46,880 47,000 50,000 164,133 57,380 58,000 62,000 1,356,653 1,329,950 1,368,010 1,411,308 412,873 395,950 413,060 425,450 854,113 893,630 915,030 942,486 1,266,986 1,289,580 1,328,090 1,367,936 89,667 40,370 39,920 43,373 733,868 603,170 502,010 517,070 (644,201) (562,800) (462,090) (473,698) 655,000 865,000 880,000 690,000 655,000 865,000 880,000 690,000 4,646,213 4,948,413 5,366,323 5,582,625 $ - $ 974,730 $ 880,000 $ - * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. -199- BUDGET SUMMARY CENTRAL GARAGE FUND PROJECTION CASH FLOW SUMMARY SOURCES OF CASH Total Revenues Items not requiring cash - Depreciation Decrease in Receivables Increase in Payables Transfer in TOTAL SOURCES USES OF CASH Total Expenses Capital Outlay TOTAL USES NET INCREASE (DECREASE) IN CASH H BALANCE - JANUARY 1 CASH BALANCE - DECEMBER 31 2018 2019 Actual Revised 2020 2021 Budget Projected $ 1,300,528 $ 1,329,950 $ 1,368,010 $ 1,411,308 733,868 603,170 502,010 517,070 14,691 71,499 - - - 655,000 865,000 880,000 690,000 2,775,586 2,798,120 2,750,020 2,618,379 2,000,854 1,892,750 1,830,100 1,885,006 582,619 974,730 880,000 - 2,583,473 2,867,480 2,710,100 1,885,006 192,113 (69,360) 39,920 733,373 1,414,647 1,606,760 1,537,400 1,577,320 $ 1,606,760 $ 1,537,400 $ 1,577,320 $ 2,310,693 CASH TO BE AVAILABLE Current assets - December 31 $ 1,606,760 Less: Current liabilities - December 31 140,018 Cash To Be Available $ 1,466,742 - 200 - CENTRAL GARAGE DIVISION MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. DIVISION FOCUS To procure, maintain, repair and replace all motor vehicles, heavy equipment and attachments used by the City. To also provide quality, durable equipment for all divisions and maintain that equipment so that it performs 24 hours a day, seven days a week, and is always able to respond to emergencies as needed. Staff maintains 141 motorized pieces of equipment and another 52 non -motorized pieces of equipment. 2019 HIGHLIGHTS • Installation of a 40kW solar system on top of the garage building (City Council Goal 6). • Evaluated where Hybrid/Electric vehicles can fit into the fleet (City Council Goal 6). • Purchase PHEVs (Plug-in Hybrid Electric Vehicle) for use by the Engineering and Recreation Divisions (City Council Goal 6). • Introduction of Staff Public Engagement Vehicle (City Council Goal 5). 2020 DIVISION GOALS • Continue to evaluate repurposing Police Patrol vehicles for other divisions' use (City Council Goal 6). • Continue evaluation of opportunities to introduce more Hybrid/Electric vehicles into the fleet (Council Goal 6). • Purchase of 3 Hybrid vehicles for Police Detectives (City Council Goal 6). DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects a 3.9% decrease from the 2019 Adopted Budget due a reduction in depreciation. The 2020 Proposed Budget reflects a 9.0% decrease from the 2019 Adopted Budget due to decreases in vehicle purchases and depreciation. It is to be expected that expenditure increases will be needed in the future due to needed vehicle purchases. - 201 - FUND: CENTRAL GARAGE DEPARTMENT: Public Works BUSINESS UNIT: CENTRAL GARAGE - 61000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Charges for Service 4318 Equipment Rental - Operating $ 1,192,520 $ 1,270,270 $ 1,272,570 $ 1,310,010 Charges for Service Total $ 1,192,520 $ 1,270,270 $ 1,272,570 $ 1,310,010 Other Income 8011 Investment Earnings $ 19,561 $ 6,100 $ 10,500 $ 11,000 8034 Other Refund/Reimbursements 6,447 - - - 8035 Other Miscellaneous Revenues 2,428 600 1,880 2,000 8037 Recovery From Damage City Prop 48,835 20,000 20,000 20,000 8038 Gain on disposal of Assets 86,862 25,000 25,000 25,000 Other Income Total $ 164,133 $ 51,700 $ 57,380 $ 58,000 Other Financing Sources 8051 Operating Transfers In $ 655,000 $ 865,000 $ 865,000 $ 880,000 Other Financing Sources Total $ 655,000 $ 865,000 $ 865,000 $ 880,000 CENTRAL GARAGE TOTAL $ 2,011,653 $ 2,186,970 $ 2,194,950 $ 2,248,010 - 202 - FUND: CENTRAL GARAGE DEPARTMENT: Public Works BUSINESS UNIT: CENTRAL GARAGE - 61000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 300,129 $ 296,490 $ 296,020 $ 307,980 6009 Overtime 5,329 5,000 5,000 7,000 6013 Longevity 1,035 1,130 1,100 1,130 6031 Employer Social Security 17,990 18,290 18,390 19,120 6032 Employer Medicare 4,207 4,280 4,300 4,470 6033 Employer Pera 37,553 22,240 22,240 23,140 6035 Medical Insurance 34,004 35,810 30,990 34,000 6036 Dental Insurance 2,817 2,930 2,930 2,940 6037 Term Life 84 160 160 160 6038 Workers Compensation 9,060 8,550 8,550 6,840 6040 Long Term Disability 665 700 700 710 6051 Interdepartmental Labor - - 5,570 5,570 Personal Services Total $ 412,873 $ 395,580 $ 395,950 $ 413,060 Other Services & Charges 6103 Professional Services -General $ 1,823 $ 4,220 $ 4,230 $ 4,230 6202 Data Processing Rental 19,055 20,230 20,480 21,190 6205 Maintenance & Repairs 130,560 132,330 132,330 132,330 6206 Accident Repairs 63,173 30,000 30,000 35,000 6207 Utility Services 70,378 67,780 67,780 67,780 6302 Communications 1,370 2,750 2,750 2,750 6303 Professional Development 1,992 2,580 2,580 2,580 6305 Subscriptions & Memberships 115 - - - 6307 Insurance & Bonds 50,258 49,340 56,690 61,480 6308 Property Liability 24,070 24,790 24,790 25,530 6310 Taxes & Licenses 2,081 5,000 5,000 5,000 6315 Other Contractual Services 33,506 34,560 34,560 35,760 6401 Office Supplies 43 660 660 660 6402 Copy Charges - 120 120 120 6403 Postage 12 100 100 100 6405 Fuels 220,754 281,900 279,400 279,400 6406 Lubricants 4,736 8,500 8,500 9,500 6407 Auto Operating Supplies 9,268 10,460 10,460 12,460 6408 Tires 21,350 22,000 22,000 24,000 6409 Uniforms & Clothing 4,002 3,360 3,360 4,360 6410 Small Tools & Parts 135,018 126,310 126,310 127,390 6414 Other Supplies 60,549 61,530 61,530 63,410 Other Services & Charges Total $ 854,113 $ 888,520 $ 893,630 $ 915,030 Depreciation 6610 Depreciation $ 733,868 $ 775,020 $ 603,170 $ 502,010 Depreciation Total $ 733,868 $ 775,020 $ 603,170 $ 502,010 -203- FUND: CENTRAL GARAGE DEPARTMENT: Public Works BUSINESS UNIT: CENTRAL GARAGE - 61000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Capital Outlay 7500 Motor Vehicles $ - Capital Outlay Total $ - CENTRAL GARAGE TOTAL $ 2,000,854 a�1 JG`T,/ JV y1 JI `T,l JV N7 VV V,V VV $ 2,983,850 $ 2,867,480 $ 2,710,100 -204- FUND: CENTRAL GARAGE DEPARTMENT: Public Works BUSINESS UNIT: CENTRAL GARAGE - 61000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees Operations Superintendent M-3 .20 .25 .25 Operations Manager M-2 .50 .50 .50 Automotive Mechanic LT-2 3.00 3.00 3.00 Senior Office Assistant GS-2 .35 .35 .35 Total 4.05 4.10 4.10 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET Fire Pumper Body $ 303,100 $ 303,100 $ - Zamboni 111,630 111,630 - 2 - Park 1-Ton Dump & Plow 100,000 - 100,000 4 - Police SUV Interceptors 150,000 150,000 - Z-Mower 20,000 20,000 - 1-Ton Puckup W/tommygate 50,000 50,000 - 3/4-Ton Utility 4x4 50,000 50,000 - 4 - Inspections PHEV SUV's 140,000 - - 2 - Inspections PHEV SUV's - 70,000 - 3 - Detective Hybrid Cars - 85,000 - 2 - VOTAF SUV's Police - 70,000 - Tool Cat - 65,000 - Dump Truck - - 220,000 2 - MT Sidewalk Plows - - 260,000 3/4-Ton Pickup Truck - - 35,000 Fire Tahoe - - 50,000 2 - Police SUV Interceptors - - 85,000 1-Ton Utility Box Truck - - 40,000 3 - Detective Hybrid Cars - - 90,000 Total $ 924,730 $ 974,730 $ 880,000 - 205 - FUND: INFORMATION TECHNOLOGIES DEPARTMENT: Administrative Services DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 62000 INFORMATION TECHNOLOGIES $ 1,079,420 $ 1,350,070 $ 1,397,890 $ 1,513,130 12.08% Administrative Services TOTAL $ 1,079,420 $ 1,350,070 $ 1,397,890 $ 1,513,130 12.08% REVENUES 62000 INFORMATION TECHNOLOGIES $ 1,116,525 $ 1,188,800 $ 1,186,920 $ 1,223,900 2.95% $1,400,000 $1,200,000 E X $1,000,000 P E $800,000 N S $600,000 E S $400,000 $200,000 $0 INFORMATION TECHNOLOGIES 2017 2018B 2018R 2019B YEAR -206- BUDGET SUMMARY INFORMATION TECHNOLOGIES FUND PROJECTION 2018 2019 2020 2021 AVAILABLE FOR APPROPRIATION Actual Revised Budget Projected PRIOR YEAR RETAINED EARNINGS $ 160,554 $ 197,659 $ 126,489 $ (103,311) Revenues Charges for Service Subtotal Miscellaneous Revenues Interest Other Total Miscellaneous Revenues Total Revenues Expenses Personal Service Other Services and Charges Total Operating Expenses Net Income before Depreciation Depreciation Net Income (Loss) Operating Transfers: From (To) Capital Project Funds Net Transfers RETAINED EARNINGS CAPITAL OUTLAY * $ 978,946 $ 1,006,320 $ 1,038,300 1,069,450 978,946 1,006,320 1,038,300 1,069,450 5,638 600 600 620 1 an 1 _ _ _ /,J/27 VVV VVV VGV 986,525 1,006,920 1,038,900 1,070,070 368,949 440,770 566,330 583,320 646,296 754,480 833,200 805,150 1 n1F 7nti 1 1ati 7Fn 1 iaa ti,zn 1 'ZAP A7n (28,720) (188,330) (360,630) (318,400) 64,175 62,840 54,170 55,800 (92,895) (251,170) (414,800) (374,200) Fe7WLTATA�PTWITiTi��WY�ITiTW 197,659 126,489 (103,311) (292,511) $ - $ 139,800 $ 59,430 $ - * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. - 207 - BUDGET SUMMARY INFORMATION TECHNOLOGIES FUND PROJECTION CASH FLOW SUMMARY SOURCES OF CASH Total Revenues Items not requiring cash - Decrease in Prepaid Items Depreciation Transfers TOTAL SOURCES USES OF CASH Total Expenses Decrease in Payables Capital Outlay TOTAL USES 2018 2019 2020 2021 Actual Revised Budget Projected $ 986,525 $ 1,006,920 $ 1,038,900 $ 1,070,070 1,418 - - - 64,175 62,840 54,170 55,800 130,000 180,000 185,000 185,000 1,182,118 1,249,760 1,278,070 1,310,870 1,079,420 1,258,090 1,453,700 1,444,270 49,986 - - - - 139,800 59,430 - 1,129,406 1,397,890 1,513,130 1,444,270 NET INCREASE (DECREASE) IN CASH 52,712 (148,130) (235,060) (133,400) CASH BALANCE - JANUARY 1 382,033 434,745 286,615 51,555 CASH BALANCE - DECEMBER 31 $ 434,745 $ 286,615 $ 51,555 $ (81,845) CASH TO BE AVAILABLE Current Assets - December 31 $ 434,745 Less: Current Liabilities - Dec. 31 120,458 Cash To Be Available $ 314,287 -208- INFORMATION TECHNOLOGIES DIVISION MISSION STATEMENT We recognize the individual strengths and qualities of each person on our team and we combine our skills, knowledge and resources to deliver quality technology support to the City of Richfield staff and vendors. We are committed to developing our services to meet the needs and the expectations of staff, while continuing to protect the integrity and security of the data and the network. DIVISION FOCUS Information Technologies' primary focus is to provide a variety of computer services utilized by city departments. Help desk support is available for all aspects of the computer system. Hardware and software procurement, installation, testing and troubleshooting services are also provided. The division is responsible for the administration of the City's computer network and Voice over IP (VoIP) telephony system. This includes ensuring the security and integrity of the systems, providing local and wide -area networking services, and system planning. The I.T. Division works closely with the Network Services staff at LOGIS, a consortium of Minnesota cities and other government agencies. LOGIS provides critical services to the City, including network server backups, redundancy for network components, hot spare equipment, and network engineering and security services. This division also provides a variety of other services utilized by various City departments. The division provides support for the processing of outgoing mail, purchases items for the City's internal office supplies store, maintenance and support for all the main copiers and printers, administers the Municipal Center building security system, assists the City Clerk with election results and assists the Finance department with budget processing. City departments are charged for the cost of services, supplies, maintenance, and support based on their use of the City's computer and telephony systems. In both 2019 and 2020 the focus of the division is to continue to provide high quality computer and VoIP telephony support services, maintain a reliable and cost effective computer network, and insure the continued security of the network and data. 2019 HIGHLIGHTS • Continue to provide high quality Help Desk support to City staff. • Create and distribute a help desk ticketing system for staff to use. • Install fiber optics along 66th Street to create more redundancy with the City's connection to LOGIS and State. This will also allow the City to complete a fiber connection to the Penn Liquor store and possibly other facilities, such as park buildings. (City Council Goal 1) • Collaborate with Human Resources to develop and implement a Flexible Workplace environment while ensuring network security. (City Council Goal 6) • Implement and manage city -owned mobile devices to enhance the security and safety of the City's network. (City Council Goal 6) - 209 - • Upgrade of the City's VoIP telephony system. • Replace the City's camera security system (equipment/software) to bring the aging system up to date. • Replace and upgrade components of the City's network infrastructure so as to maintain an up to date, secure, and reliable computer system. • Continue developing the City's network and computer security, staff training, and City policies into compliance with the Payment Card Industry data security standards. • Continue to expand use of the Laserfiche functions to enhance efficiency. • Replace hardware and upgrade the operating system on City PCs and laptops. • Support the City Hall Conference Rooms and Cablecast Servers. • Install and train staff on Cisco Jabber for instant messaging and softphone capabilities. • Install and train staff using Cisco WebEx to help improve productivity with video conferencing, online meetings, screen share, and webinars. 2020 DIVISION GOALS • Upgrade to Microsoft Office 365 selecting the best options for Richfield's environment and training for all staff. • Provide more training opportunities for City staff. • Help implement and support the recommended process from the Records Management and Business Processes Report to improve and enhance our records management processes. (City Council Goal 6) • Evaluate the need and cost to connect our current Fiber Optics network to other city facilities (park buildings). • Replace the aging Security System Door Access (software and hardware). Begin to evaluate and add other city facilities to the system. • Upgrade any remaining PC's from Windows 7 to Windows 10. DIVISION EXPENDITURE COMMENT The 2019 Revised Budget reflects an increase over the 2019 Adopted Budget for the following reasons: • Emergency move of the City's fiber optics for the Chamberlin Development Project • Increase in equipment costs • Additional training for IT Staff • A slight increase to replacing existing desktop PCs with laptops • Upgrade the server's operating systems to keep the OS current due to Microsoft End of Life support. The 2020 Proposed Budget increase from 2019 Revised Budget is due to the following: • Addition of a full time IT Staff position. IT has been operating with 4 fulltime staff members, with the addition in 2014 of 2 employees at 20% of their time. Since moving into the new building the number of PC's supported has almost doubled, the addition of mobile devices, more security requirements and the higher demand in technology requires more staff. • Increase in Mobile Device Management • Upgrading to Office 365. -210- FUND: INFORMATION TECHNOLOGIES DEPARTMENT: Administrative Services BUSINESS UNIT: INFORMATION TECHNOLOGIES - 62000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Charges for Service 4320 IT Equipment Rental $ 919,876 $ 948,830 $ 947,020 $ 977,220 4322 Sale of Supplies 28,957 29,290 35,720 36,790 4324 Copying Services 11,055 10,780 8,260 8,510 4326 Postage Services 19,058 19,300 15,320 15,780 Charges for Service Total $ 978,946 $ 1,008,200 $ 1,006,320 $ 1,038,300 Other Income 8011 Investment Earnings $ 5,638 $ 600 $ 600 $ 600 8039 State Pension Contribution 1,941 - - - Other Income Total $ 7,579 $ 600 $ 600 $ 600 Other Financing Sources 8051 Operating Transfers In $ 130,000 $ 180,000 $ 180,000 $ 185,000 Other Financing Sources Total $ 130,000 $ 180,000 $ 180,000 $ 185,000 INFORMATION TECHNOLOGIES TOTAL $ 1,116,525 $ 1,188,800 $ 1,186,920 $ 1,223,900 MEE FUND: INFORMATION TECHNOLOGIES DEPARTMENT: Administrative Services BUSINESS UNIT: INFORMATION TECHNOLOGIES - 62000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Costs of Goods Sold 5510 Purchases for Resale $ 28,872 Costs of Goods Sold Total $ 28,872 Personal Services 6005 Full Time $ 317,353 6013 Longevity 2,548 6031 Employer Social Security 19,332 6032 Employer Medicare 4,521 6033 Employer Pera (13,708 6035 Medical Insurance 35,081 6036 Dental Insurance 2,904 6037 Term Life 85 6038 Workers Compensation 216 6040 Long Term Disability 617 Personal Services Total $ 368,949 Other Services & Charges 6103 Professional Services -General $ 235,984 6201 Rents & Leases 15,362 6205 Maintenance & Repairs 55,305 6207 Utility Services 65,640 6302 Communications 60,380 6303 Professional Development 322 6305 Subscriptions & Memberships 1,668 6307 Insurance & Bonds 5,590 6308 Property Liability 2,120 6401 Office Supplies 3,499 6402 Copy Charges 526 6403 Postage 75 6414 Other Supplies 170,953 Other Services & Charges Total $ 617,424 Depreciation 6610 Depreciation $ 64,175 Depreciation Total $ 64,175 Capital Outlay 7350 Other Improvements $ - 7400 Machinery & Equipment - Capital Outlay Total $ - INFORMATION TECHNOLOGIES TOTAL $ 1,079,420 $ 52,020 $ 50,000 $ 51,500 $ 322,940 $ 329,450 $ 422,430 1,880 1,920 2,030 19,450 20,100 25,840 4,550 4,700 6,040 24,360 24,850 31,840 62,290 54,400 72,000 4,250 4,250 5,040 240 240 280 210 210 180 $ 440,820 $ $ 278,280 $ 54,030 67,710 64,890 1,720 1,770 6,880 2,180 1,750 220 100 187,600 440,770 $ 566,330 271,900 $ 305,100 15,370 - 67,110 84,200 67,710 69,740 66,460 69,940 2,800 2,880 1,770 1,830 4,250 4,370 2,180 2,250 1,700 1,750 340 350 100 100 202,790 239,190 $ 62,840 $ 62,840 $ 54,170 $ 90,000 $ 90,000 $ 19,000 $ 127,260 $ 139,800 $ 59,430 $ 1,350,070 $ 1,397,890 $ 1,513,130 WAPM FUND: INFORMATION TECHNOLOGIES DEPARTMENT: Administrative Services BUSINESS UNIT: INFORMATION TECHNOLOGIES - 62000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employees IT Manager M-3 1.00 1.00 1.00 IT Technician GS-5 1.00 1.00 - Help Desk Technician GS-5 1.00 1.00 1.00 Network Administrator GS-6E 1.00 1.00 1.00 GIS Analyst/IT Technician GS-5 .20 .20 - Police IT Specialist GS-5 .20 .20 - IT/PW Help Desk Technician GS-5 - - 1.00 IT Technician GS-6 - - 1.00 GIS Analyst/IT Technician GS-6 - - .30 Police IT Specialist GS-6 - - .20 Total 4.40 4.40 5.50 CAPITAL OUTLAY ITEMS 2019 ADOPTED 2019 REVISED 2020 BUDGET 66th Street Fiber $ 90,000 $ 90,000 $ - ASA 5525-X Firewall - Server Room 12,000 12,000 - 1-24 port Switch LO-RIL3-ASR - 8,500 - 4-48 Port Switches-PW,Arena,Cedar Liq 25,260 29,300 - Penn Liquor Store Fiber - - 19,000 Penn Liq Replace Switch for Fiber - - 8,500 48 port Switch RI-ASr2 - - 7,780 Voice Bundle - - 9,150 Door Access Security System - - 10,000 Add PubWorks to Security System - - 5,000 Total $ 127,260 $ 139,800 $ 59,430 -213- FUND: PROPERTY LIABILITY DEPARTMENT: Administrative Services DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 64000 PROPERTY LIABILITY $ 693,948 $ 1,145,220 $ 1,124,530 $ 1,136,880 (0.73%) Administrative Services TOTAL $ 693,948 $ 1,145,220 $ 1,124,530 $ 1,136,880 (0.73%) REVENUES 64000 PROPERTY LIABILITY $ 1,049,085 $ 981,430 $ 972,920 $ 968,000 (1.37%) $1,200,000 E $1,000,000 X P $800,000 E N $600,000 S E S $400,000 $200,000 $0 SELF INSURANCE 2017 2019B 2019R 2020B YEAR -214- BUDGET SUMMARY SELF INSURANCE FUND PROJECTION AVAILABLE FOR APPROPRIATION PRIOR YEAR RETAINED EARNINGS Revenues Charges for Service: Employers' Contribution Employees' Contribution Operating Revenues Miscellaneous Revenues Interest Claims/Refunds Total Miscellaneous Revenues Total Revenues Expenses Personal Services Other Services and Charges Total Expenses Net Income (Loss) Operating Transfers From (To) Self Insurance - Workers Comp Self Insurance - Property Liab. RETAINED EARNINGS 2018 2019 2020 2021 Actual Revised Budget Projected n A9Q ZZF (Z A 77F A77 n F)A PrO (Z n AGG 0W) 726,998 693,020 679,800 700,190 90,688 127,400 133,700 137,710 817,686 820,420 813,500 837,900 85,668 85,000 90,000 92,700 75,731 24,500 24,500 25,240 161,399 109,500 114,500 117,940 979,085 929,920 928,000 955,840 316,553 363,280 364,520 375,460 304,396 718,250 732,360 754,335 620,949 1,081,530 1,096,880 1,129,794 358,136 (151,610) (168,880) (173,954) 70,000 43,000 40,000 - (70,000) (43,000) (40,000) - $ 4,776,472 $ 4,624,862 $ 4,455,982 $ 4,282,028 -215- BUDGET SUMMARY SELF INSURANCE FUND PROJECTION 2018 2019 2020 2021 CASH FLOW SUMMARY Actual Revised Budget Projected SOURCES OF CASH Charges for Service $ 979,085 $ 929,920 $ 928,000 $ 955,840 Internal Loan 62,247 62,250 63,500 64,780 Transfer In 70,000 73,000 40,000 - TOTAL SOURCES 1,111,332 1,065,170 1,031,500 1,020,620 USES OF CASH Total Expenses 620,949 1,081,530 1,096,880 1,129,794 Decrease in Payables 74,044 Decrease in Reserve for Claims 81,560 - - - Transfer Out 70,000 43,000 40,000 - TOTAL USES 846,553 1,124,530 1,136,880 1,129,794 NET INCREASE (DECREASE) IN CASH 264,779 (59,360) (105,380) (109,174) CASH BALANCE - JANUARY 1 4,334,918 4,599,697 4,540,337 4,434,957 CASH BALANCE - DECEMBER 31 $ 4,599,697 $ 4,540,337 $ 4,434,957 $ 4,325,783 CASH TO BE AVAILABLE Current Assets - December 31 $ 4,663,200 Less: Current Liabilities - Dec. 31 16,971 CASH TO BE AVAILABLE $ 4,646,229 -216- SELF INSURANCE FUND MISSION STATEMENT To support all of the City's costs for claims related to workers' compensation, unemployment insurance benefits and all other City self-insurance costs. To account for employee contributions and claims in the Flexible Spending Account (FSA) benefits plan and Dental insurance plan. DIVISION FOCUS This fund functions to service the City's workers' compensation program including safety programs, incentives and claims. It also provides funds for dental insurance coverage and serves as the account for the City's Flexible Spending Account benefits plan. In addition, all claims paid below the City's significant deductible limit for virtually all liability and property exposures are paid from this fund as well as awards of compensation, legal costs and administrative costs. Finally, the account also serves as a self insurance fund to cover risk exposures which are not insurable or which would require extraordinary premiums. While the majority of the City's workers' compensation program is self insured, excess coverage for individual workers' compensation claims which exceed $500,000 is purchased from the Workers' Compensation Reinsurance Association (WCRA) as mandated by State Statute. All costs below that amount on each claim are paid from this fund. Funding from the Self -Insurance Fund pay for disability benefits, medical costs, legal fees, administrative charges and safety and risk management/reduction programs. The fund also provides for the periodic maintenance and upgrade of the City's fitness equipment. The Administrative Services Director/Assistant City Manager and the Human Resources Manager and Human Resources Administrative Assistant regulate the Self -Insurance Fund and perform other associated duties. Accordingly, a portion of those individuals' time is charged to this fund. The administration of the City's risk management program is a very comprehensive and time -intensive function. 2019 HIGHLIGHTS 2019 and 2020 base workers' compensation premiums charged to City departments were decreased based on prior years claim history. The rates charged to City departments for property/casualty liability coverage reflect a 3% increase for 2020. 2020 SELF INSURANCE DIVISION GOALS • Continue to monitor rates charged to user departments and divisions for workers' compensation and property casualty and adjust accordingly. • Reduce workers' compensation claims for the City of Richfield, both occurrence and severity. • Promote employee health and safety. • Administer a successful risk management program, identifying risk exposures and dealing with them appropriately. • Continue to manage the City's Wellness Program. DIVISION EXPENDITURE COMMENT The budgeted expenditures for the Self -Insurance Fund for the 2019 Revised/2020 Proposed Budget reflect the anticipated costs for claims and to administer the risk management program. Rates charged to user departments reflect a decrease in worker's compensation and a 3% increase in property/casualty coverage for both 2019 and 2020. The City's municipal liability loss experience modification went from a debit modification of 1.254 to 1.213 (3.3% decrease) for the 2019-2020 renewal period. -217- FUND: PROPERTY LIABILITY DEPARTMENT: Administrative Services BUSINESS UNIT: PROPERTY LIABILITY - 64000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Charges for Service 4328 Self Insurance City Contributi $ 526,256 $ 537,000 $ 527,090 $ 508,900 4330 Self Insurance Employee Contri 63,769 67,500 64,000 67,500 4332 Property Contribution 161,000 165,930 165,930 170,900 4334 Flex Daycare 39,742 34,500 36,400 38,700 4336 Flex Health 26,918 27,000 27,000 27,500 4338 Insurance Claims 58,119 6,500 6,500 6,500 4340 Insurance Premium Refunds 17,612 50,000 18,000 18,000 Charges for Service Total $ 893,416 $ 888,430 $ 844,920 $ 838,000 Other Income 8011 Investment Earnings $ 85,669 $ 50,000 $ 85,000 $ 90,000 Other Income Total $ 85,669 $ 50,000 $ 85,000 $ 90,000 Other Financing Sources 8051 Operating Transfers In $ 70,000 $ 43,000 $ 43,000 $ 40,000 Other Financing Sources Total $ 70,000 $ 43,000 $ 43,000 $ 40,000 PROPERTY LIABILITY TOTAL $ 1,049,085 $ 981,430 $ 972,920 $ 968,000 -218- FUND: PROPERTY LIABILITY DEPARTMENT: Administrative Services BUSINESS UNIT: PROPERTY LIABILITY - 64000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 4,303 6038 Workers Compensation 56,362 6039 MN Unemployment 7,700 6051 Interdepartmental Labor 198,208 6052 Administrative Charges 49,980 Personal Services Total $ 316,553 Other Services & Charges 6103 Professional Services -General $ 31,677 6202 Data Processing Rental 4,274 6303 Professional Development 847 6306 Care of Persons 59,978 6307 Insurance & Bonds 12,094 6313 Day Care Reimbursement 44,368 6314 Health Care Reimbursement 28,750 6315 Other Contractual Services (35,745) 6316 Dental Single 79,321 6317 Dental Spouse 28,626 6318 Dental Dependent 39,492 6414 Other Supplies 1,329 6513 Other Charges 12,384 Other Services & Charges Total $ 307,395 Other Financing Uses 8511 Operating Transfers Out $ 70,000 Other Financing Uses Total $ 70,000 PROPERTY LIABILITY TOTAL $ 693,948 $ 20,000 $ 15,000 $ 15,000 70,000 70,000 70,000 35,000 34,000 35,000 189,670 198,300 200,000 45,980 45,980 44,520 $ 360,650 $ 363,280 $ 364,520 $ 41,000 $ 40,000 $ 41,000 4,470 4,550 4,760 1,100 1,100 1,100 118,000 118,000 118,000 10,000 12,100 13,000 32,000 44,500 46,500 37,000 29,000 30,000 210,000 210,000 210,000 87,000 82,000 83,000 29,000 29,000 30,000 56,000 37,000 39,000 1,000 1,000 1,000 115,000 110,000 115,000 $ 741,570 $ 718,250 $ 732,360 $ 43,000 $ 43,000 $ 40,000 $ 43,000 $ 43,000 $ 40,000 $ 1,145,220 $ 1,124,530 $ 1,136,880 -219- FUND: BUILDING SERVICES FUND DEPARTMENT: Administrative Services DEPARTMENT SUMMARY BY BUSINESS UNIT Increase/ 2018 2019 2019 2020 019 B(Decrease) 2019 Budget/ BUSINESS UNIT ACTUAL BUDGET REVISED BUDGET 2020 Budget 67000 BUILDING SERVICES FUND $ 856,153 $ 893,870 $ 897,140 $ 923,810 3.35% Administrative Services TOTAL $ 856,153 $ 893,870 $ 897,140 $ 923,810 3.35% REVENUES 67000 BUILDING SERVICES FUND $ 890,849 $ 886,940 $ 897,140 $ 924,180 4.20% $1,000,000 E $800,000 X P E N $600,000 S E S $400,000 $200,000 $0 BUILDING SERVICES 2018 2019B 2019R 2020B YEAR -220- BUDGET SUMMARY BUILDING SERVICES FUND PROJECTION AVAILABLE FOR APPROPRIATION 2018 2019 Actual Revised 2020 2021 Budget Projected PRIOR YEAR RETAINED EARNINGS $ 737,465 $ 772,161 $ 772,161 $ 772,531 Revenues Charges for Service: Building Rental Miscellaneous Revenues Interest Other Revenue Total Misc. Revenues Total Revenues Expenses Personal Services Other Services and Charges Operating Expenses 871,709 883,140 13,895 13,000 5,245 1,000 19,140 14,000 890,849 897,140 345,832 362,130 479,906 504,590 825,738 866,720 910,180 937,480 13,000 13,000 1,000 1,000 14,000 14,000 924,180 951,480 376,580 387,880 516,730 532,234 893,310 920,114 Net Income before Depreciation 65,111 30,420 30,870 31,366 Depreciation 30,415 30,420 30,500 30,500 Net Income (Loss) 34,696 - 370 866 RETAINED EARNINGS 772,161 772,161 772,531 773,397 CAPITAL OUTLAY $ - $ - $ - $ - * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. INGE BUDGET SUMMARY BUILDING SERVICES FUND PROJECTION CASH FLOW SUMMARY Total Revenues Items not requiring cash - Decrease in Receivables Depreciation TOTAL SOURCES USES OF CASH Total Expenses Decrease in Payables TOTAL USES NET INCREASE (DECREASE) IN CASH CASH BALANCE - JANUARY 1 CASH BALANCE - DECEMBER 31 2018 2019 2020 2021 Actual Revised Budget Projected $ 890,849 $ 897,140 $ 924,180 $ 951,480 230 - - - 30,415 30,420 30,500 30,500 921,494 927,560 954,680 981,980 856,153 897,140 923,810 950,614 39,485 - - - 895,638 897,140 923,810 950,614 25,856 30,420 30,870 31,366 893,556 919,412 949,832 980,702 $ 919,412 $ 949,832 $ 980,702 $ 1,012,068 CASH TO BE AVAILABLE Current assets - December 31 $ 919,412 Less: Current liabilities - December 31 55,079 Cash To Be Available $ 864,333 sJWM BUILDING SERVICES DIVISION MISSION STATEMENT To provide mechanical and janitorial services to the Richfield Municipal Center complex and Fire Station 2 and to plan, administer and finance major maintenance for these buildings. DIVISION FOCUS The Building Services Division is made up of the Building Operations Manager, two Building Maintenance Mechanics and a Building Services Custodian. The division is responsible for the maintenance and upkeep of the Richfield Municipal Center, Fire Station 2, and the stores of the City's Liquor operation. The division charges City departments a rental charge based on their square footage use of the Richfield Municipal Center and Fire Station 2, for the costs of services, supplies and maintenance. The City's Liquor operation is charged directly for time and materials incurred. In both 2019 and 2020 the focus of the division will be to provide high quality service to its customers and to maintain a clean and safe environment for City employees to work in. Finally, the Division assists with maintenance tasks at the City's Swimming Pool, Ice Arena, park buildings, Woodlake Nature Center and the Community Center as needed. 2019 HIGHLIGHTS • Working with the Public Works Director, managed the demolition of the former Motel 6 property. • Managed the bid process to replace the roof and the HVAC system at the South Lyndale liquor location which resulted in savings to the liquor operation. 2020 BUILDING SERVICES DIVISION GOALS • Continue to refine the operating budget between increased user charges and operating costs to ensure a balanced operation. • Work with the Finance Director to establish a replacement plan for capital items at the Richfield Municipal Center to ensure its long term viability. DIVISION EXPENDITURE COMMENT The 2020 Proposed budget was prepared to provide the services necessary and to maintain the infrastructure of the various buildings. User charges will be reviewed annually to ensure that the meet expected operating costs. - 223 - FUND: BUILDING SERVICES FUND DEPARTMENT: Administrative Services BUSINESS UNIT: BUILDING SERVICES FUND - 67000 DETAIL REVENUES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Charges for Service 4346 Building Rental $ 841,632 $ 868,140 $ 868,140 $ 894,180 4348 Labor Services 30,077 13,000 15,000 16,000 Charges for Service Total $ 871,709 $ 881,140 $ 883,140 $ 910,180 Other Income 8011 Investment Earnings $ 13,895 $ 5,800 $ 13,000 $ 13,000 8034 Other Refund/Reimbursements 5,245 - 1,000 1,000 Other Income Total $ 19,140 $ 5,800 $ 14,000 $ 14,000 BUILDING SERVICES FUND TOTAL $ 890,849 $ 886,940 $ 897,140 $ 924,180 s�zE FUND: BUILDING SERVICES FUND DEPARTMENT: Administrative Services BUSINESS UNIT: BUILDING SERVICES FUND - 67000 DETAIL EXPENDITURES BY BUSINESS UNIT 2018 2019 2019 2020 CLASSIFICATIONS ACTUAL BUDGET REVISED BUDGET Personal Services 6005 Full Time $ 234,776 $ 240,570 $ 240,060 $ 248,210 6006 Part-time 24,219 23,380 23,380 24,950 6009 Overtime 28 500 500 500 6013 Longevity 1,810 1,940 1,960 2,030 6031 Employer Social Security 15,525 16,000 16,170 16,650 6032 Employer Medicare 3,631 3,740 3,790 3,910 6033 Employer Pera 9,630 19,940 19,910 20,640 6035 Medical Insurance 44,113 45,800 43,910 48,290 6036 Dental Insurance 2,142 2,150 2,160 2,160 6037 Term Life 63 120 120 120 6038 Workers Compensation 9,408 9,340 9,340 8,260 6040 Long Term Disability 487 490 830 860 Personal Services Total $ 345,832 $ 363,970 $ 362,130 $ 376,580 Other Services & Charges 6103 Professional Services -General $ 168 $ 1,160 $ 1,170 $ 1,170 6202 Data Processing Rental 12,880 13,090 13,200 13,440 6204 Motor Pool Operating Rental 7,290 7,660 7,660 8,100 6205 Maintenance & Repairs 45,508 42,000 42,000 42,000 6207 Utility Services 213,547 211,150 2153760 224,580 6302 Communications 8,796 9,940 9,940 10,230 6303 Professional Development - 13200 1,200 13200 6307 Insurance & Bonds 18,634 18,300 18,800 19,360 6308 Property Liability 19,150 19,730 19,730 20,320 6310 Taxes & Licenses 1,002 1,140 1,140 1,140 6315 Other Contractual Services 122,974 133,030 132,910 133,110 6401 Office Supplies 118 500 500 500 6409 Uniforms & Clothing 1,595 1,780 1,780 1,780 6410 Small Tools & Parts 722 1,200 1,200 1,200 6412 Maint. & Const. Materials 10,162 13,600 13,600 13,600 6414 Other Supplies 17,360 24,000 24,000 25,000 Other Services & Charges Total $ 479,906 $ 499,480 $ 5043590 $ 516,730 Depreciation 6610 Depreciation $ 30,415 $ 30,420 $ 30,420 $ 30,500 Depreciation Total $ 30,415 $ 30,420 $ 30,420 $ 30,500 BUILDING SERVICES FUND TOTAL $ 856,153 $ 893,870 $ 897,140 $ 923,810 - 225 - FUND: BUILDING SERVICES FUND DEPARTMENT: Administrative Services BUSINESS UNIT: BUILDING SERVICES FUND - 67000 DIVISION PERSONNEL NUMBER OF EMPLOYEES SALARY 2019 2019 2020 CLASSIFICATIONS GRADE ADOPTED REVISED BUDGET Regular Full -Time Employ Building Operations Manager M-2 1.00 1.00 1.00 Building Maintenance Mechanic LT-2 1.00 1.00 1.00 Building Maintenance Mechanic LT-2 1.00 1.00 1.00 Total 3.00 3.00 3.00 Part -Time Employees Custodian GS-2 1.00 1.00 1.00 Total 1.00 1.00 1.00 CAPITAL OUTLAY 2019 2019 2020 ITEMS ADOPTED REVISED BUDGET None $ - $ - $ - Total $ - $ - $ - -226- THIS PAGE WAS LEFT BLANK INTENTIONALLY - 227 - DEBT SERVICE FUNDS MISSION STATEMENT To account for the accumulation for resources used to service the City's general obligation long-term debt. DIVISION FOCUS The activity in these funds is a function of the debt service schedule of the outstanding bond issues, as well as any covenants regarding fund and account structure that may be contained in the original selling agreement for the different bond issues. The debt service budget is made up of two primary funds; General Obligation Improvement bonds and General Obligation Redevelopment bonds. The General Obligation (G.O.) Improvement Bond fund provides for the collection of tax debt service levies and special assessments for the payment of principal and interest on the bonds issued for the purpose of public improvements. Beginning in 2007, in response to infrastructure improvements within the City, the City has predominantly issued bonds that require the levying of taxes to service the debt. Accordingly, the result is an annual debt service tax levy. For 2020, the total tax levy required will be $3,478,690. The bonds that will be serviced by this levy and future levies, were issued to fund several City projects, from the construction of the City municipal center to the reconstruction of roadways within the City. During 2019, the City issued the $8,325,000 G.O. Bonds, Series 2019A to fund the Lyndale Avenue Reconstruction project and the final phase of funding for the 66th Street project. In addition, the City will complete the refunding of the Series 2008A and Series 2009A. These bonds were refunded by the Series 2016C and 2017B respectively. The spend down of the refunding proceeds will have the effect to reduce the fund balance within the fund in excess of 10%. The outstanding principal for G.O. Improvement bonds at the end of 2019 is $48,460,000. The G.O. Redevelopment Bonds are issued by the City of Richfield for the Richfield Housing and Redevelopment Authority (HRA). The bonds are issued to provide funding for public improvements in relation to redevelopment projects. The debt service on the outstanding bonds is provided through the collection of tax increments remitted to the HRA from Hennepin County. As part of the bond issuance, the HRA pledges the tax increment collections to the City for the purpose of the annual debt service requirements of the bonds. There are currently no plans for issuance of redevelopment bonds in the near future. The outstanding G.O. Redevelopment Bond principal at the end of 2018 is $4,220,000. The City continues to evaluate outstanding bond issues to determine if cost savings can be achieved by refinancing bonds or calling the bonds early. General Obligation bond debt service will be paid in full in the year 2040. Redevelopment bond debt service will be paid in full in the year 2025. BOND RATINGS The bond rating process is a comprehensive analysis of the City's financial practices and performances (past and current). Forecasts of future performance and projected long-term planning practices are also reviewed. The City of Richfield has maintained an excellent bond rating for many years. The City currently has received a AA+ rating from Standard and Poor's and an AA2 rating from Moody's Investors Service prior to that. Finally, the City's Debt Policies can be found on pages 27-28 in the introductory section of the document. -228- BUDGET SUMMARY GENERAL OBLIGATION IMPROVEMENT BONDS Fund Balance - January 1 Source of Funds Taxes Special Assessment Collections Interest Bond Proceeds Transfer in: Special Revenue Fund Capital Project Fund Total Sources Use of Funds Bond Principal Bond Interest Fiscal Agent Charges Other Services & Charges Transfers to: General Fund Capital Project Fund Total Uses Fund Balance - December 31 2018 2019 2019 2020 Actual Budget Revised Budget $ 10,278,411 $ 10,358,281 $ 10,844,148 $ 5,302,878 $ 2,884,805 $ 3,170,340 3,170,340 $ 3,478,690 56,015 59,000 56,000 55,000 220,761 20,000 45,000 45,000 9,921,774 - 5,604,820 - 353,340 744,480 744,480 748,020 4,100 3,760 3,760 3,420 $ 13,440,795 $ 3,997,580 $ 9,624,400 $ 4,330,130 $ 1,660,000 1,282,730 6,275 126,053 9,800,000 $ 8,150,000 1,403,140 5,750 435,000 $ 8,150,000 1,332,150 5,750 72,950 5,604,820 $ 2,545,000 1,352,310 5,750 435,000 $ 12,875,058 $ 9,993,890 $ 15,165,670 $ 4,338,060 $ 10,844,148 $ 4,361,971 $ 5,302,878 $ 5,294,948 - 229 - General Obligation Improvement Bonds Scheduled Debt Service Requirements - Annual Payments December 31, 2019 TAX LEVY REQUIREMENT YEAR PRINCIPAL INTEREST 3,468,690 2020 2,545,000 1,352,312 3,451,255 2021 2,800,000 1,256,979 3,456,451 2022 2,855,000 1,179,191 3,474,316 2023 2,935,000 1,098,299 3,483,059 2024 3,035,000 1,013,119 3,472,517 2025 3,130,000 925,148 3,477,703 2026 3,210,000 838,774 3,491,129 2027 3,300,000 753,398 2,972,789 2028 3,395,000 664,936 1,844,035 2029 2,955,000 579,323 1,861,549 2030 1,960,000 511,479 1,856,148 2031 2,035,000 455,378 1,843,967 2032 2,080,000 396,837 1,727,237 2033 2,130,000 335,863 1,568,832 2034 2,070,000 274,250 1,560,300 2035 1,980,000 214,025 1,288,324 2036 1,695,000 159,119 1,286,525 2037 1,490,000 112,294 661,316 2038 1,530,000 66,856 378,525 2039 980,000 26,813 2040 350,000 5,250 46,624,667 $ 48,460,000 $ 12,219,643 TOTAL UNPAID PRINCIPAL $ 48,460,000 3,897,312 45,915,000 4,056,979 43,115,000 4,034,191 40,260,000 4,033,299 37,325,000 4,048,119 34,290,000 4,055,148 31,160,000 4,048,774 27,950,000 4,053,398 24,650,000 4,059,936 21,255,000 3,534,323 18,300,000 2,471,479 16,340,000 2,490,378 14,305,000 2,476,837 12,225,000 2,465,863 10,095,000 2,344,250 8,025,000 2,194,025 6,045,000 1,854,119 4,350,000 1,602,294 2,860,000 1,596,856 1,330,000 1,006,813 350,000 355,250 $60,679,643 -230- BUDGET SUMMARY GENERAL OBLIGATION REDEVELOPMENT BONDS Fund Balance - January 1 Source of Funds Transfers from - Component Unit Total Sources Use of Funds Principal Bonds Bond Interest Fiscal Charges Total Uses Fund Balance - December 31 2018 2019 2019 2020 Actual Budget Revised Budget 869,366 868,050 868,100 874,280 $ 869,366 $ 868,050 $ 868,100 $ 874,280 $ 705,000 163,416 950 $ 720,000 147,150 900 $ 720,000 147,150 950 $ 745,000 128,330 950 $ 869,366 $ 868,050 $ 868,100 $ 874,280 - 231 - GENERAL OBLIGATION REDEVELOPMENT BONDS SCHEDULED DEBT SERVICE REQUIREMENTS - ANNUAL PAYMENTS December 31, 2019 YEAR PRINCIPAL INTEREST TOTAL 2020 745,000 128,321 873,321 2021 760,000 107,430 867,430 2022 790,000 84,528 874,528 2023 815,000 56,772 871,772 2024 850,000 24,256 874,256 2025 260,000 3,738 263,738 $ 4,220,000 $ 405,045 $ 4,625,045 UNPAID PRINCIPAL 4,220,000 3,475,000 2,715,000 1,925,000 1,110,000 260,000 - 232 - COMPUTATION OF LEGAL DEBT MARGIN DECEMBER 31, 2019 Market Value of Taxable Property Debt Limit 3% of Market Value of Taxable Property Amount of Debt Applicable to Debt Limit: Total Bonded Debt Less: Redevelopment Bonds Special Assessment Bonds Water Revenue Bonds Sewer Revenue Bonds Storm Sewer Revenue Bonds Total Debt Applicable to Debt Limit Available Debt Capacity $ 4,220,000 488,000 5,125,000 1,080,000 s_755_nnn $ 65,640,000 17_ssR_nnn $ 3,421,012,095 $ 102,630,362 47,972,000 $ 54,658,362 The redevelopment bonds are paid primarily from tax increment and will be paid in full in 2025. General obligation improvement bonds are paid from special assessment collections, interest earnings, and tax levies. General obligation bonds will be paid in full in 2040. It is anticipated that for existing bonds the special assessment collections will be sufficient to service that portion of the outstanding debt. However, for bond issues in 2010, 2012, 2013, 2015, 2016, 2017, 2018 and 2019 authorized tax levies will be used. The City will continue to limit long-term borrowing to capital improvements or projects that cannot be financed from current revenues. The City's Debt Service policies are summarized in the Introductory Section. - 233 - CAPITAL IMPROVEMENT BUDGET AND PLAN MISSION STATEMENT The Richfield Capital Improvement Budget and Plan is a comprehensive list of major improvements necessary to meet the needs of the community over a five-year period. This list is prepared through compiling the project needs requested by the various city departments. The Capital Plan sets forth the proposed scheduling and details of specific projects by year, estimated cost, and a justification or description to those responsible for making policy decisions regarding expenditures for new facilities. In addition, the Plan provides information so that individual project requests can be better evaluated against community needs and the community's ability to pay for and maintain these facilities in the succeeding years. CAPITAL IMPROVEMENT PLAN GOALS The specific goals of the Capital Improvement Plan are: • To develop a realistic list of capital improvement needs which relates proposed projects to the City's capacity to finance such projects. • To minimize the impact of projects on the residents' ability to pay. • To schedule various projects and improvements in a way which allows adequate time to detailed design and engineering of the projects, preparing environmental statements or grant applications or exploring alternative methods of financing. • To provide coordination between City departments, various units of special and general local government, and public utilities. • To implement the community's Comprehensive Plan in an orderly fashion. • To keep the public involved and informed about needed public improvements and to better enable the public to schedule private improvements. OVERVIEW Richfield's Capital Improvement Plan is a process for identifying annual project needs and priorities for project coordination as well as for financial planning. In addition, the Capital Improvement process provides for public discussion of short range City improvements. The Capital Improvement Budget (CIB)/Capital Improvement Plan (CIP) projects are identified through discussions of the various City commissions and the City departments. From these discussions City staff compiles estimated costs, scope and potential funding sources for the projects. A preliminary report is then generated by the Finance Director based on these discussions and presented to a meeting of the Planning Commission. The Planning Commission then reviews the projects and scheduling based on the following consideration: • The proposed project's conformance to the Comprehensive Plan. The CIB/CIP, as recommended by the Planning Commission, is then returned to the Finance Director formalized submitted to the City Council as part of the annual budget process. The Council may delete projects from the Plan or may change the scheduling and priority of the allocation of funds. In accordance with state statutes, the City Council should refer any new project they may add to the Capital Improvement Plan to the Planning Commission for review. Accordingly, the 2019 Revised/2020 Proposed Capital Improvement Budget (CIB) -234- reflects funding for several improvement projects throughout the Citx. Included are costs for the 65th Street Reconstruction, 66th Street Reconstruction, 77 Street Underpass, and the six year Mill and Overlay program. Also included are funds for park and recreation projects and water and wastewater projects. The funding for the right of way projects is expected to come from sources such as Federal and State grants, Municipal State Aid (MSA), street reconstruction bonds, and utility franchise fees. Funding for other projects included in the CIB will come from intergovernmental revenues, special revenues, and user fees. The City's main operating budgets should not be materially affected by the planned projects as all funding is outside those budgets. The only possible effect would be on the maintenance of the newly constructed projects. In some cases the maintenance costs may increase, but in others, it is expected to decrease. The Capital Improvement Plan, which represents the next four year period, also contains a number of significant proposed projects including, several park projects, major street improvement and reconstruction projects throughout the city, replacement of rolling stock and technology equipment, and several projects to improve public facilities throughout the City. 2020 Capital Improvement Budget Projects Recreation Open Space Park Maintenance/Wood Lake Fence Repair - $50,000 • This project is an annual project that manages the maintenance of existing park infrastructure. • Annual funding for these projects normally comes from an allotment that can range from $45,000 to $100,000 of special revenue funds from the Liquor Contribution Fund. • Current and future operating costs may increase slightly as parks maintenance staff of the General Fund perform the majority of the planned projects. Community Center/Wood Lake Building Repair - $50,000 • There are various maintenance projects related to the upkeep of the Community Center and Wood Lake Nature Center buildings. • These projects will be identified and prioritized on an annual basis. • Projects may include HVAC, roofing, window, and flooring repairs. • The annual funding from special revenue funds will allow the buildings to be maintained properly and reduce operating costs within Recreation Services General Fund Department. Replacement of Park Play Equipment - $350,000 • This project involves the replacement of play equipment structures at three city park; Augsburg Park, Madison Park, and Washington Park. • The replacement is in accordance with the Play Equipment Replacement Schedule established in 2018. • Funding will be provided by special revenue funding. • Operating costs for the play equipment should be reduced for initial years of use since it will be new equipment. Ice Arena Refrigeration Project - $3,680,000 • Legislation requires ice arenas in Minnesota to change their refrigeration systems by the year 2020 to avoid the use of the R22 refrigerant. -235- The conversion will include a renovated mechanical room that combines compressors for both Rink 1 and Rink 2. This will significantly improve the efficiency and reduce energy costs. Funding for the project will come from $280,000 of Special Revenue funds and internal funding of $3,400,000. Once the project is completed, it is expected that operating costs will decrease due to combining the compressors for both ice sheets. Right of Way Improvements 66th Street Reconstruction - $61,292,000 • This project consists of reconstruction of 66th Street from Xerxes Avenue east to 16th Avenue. It will include replacement of City utilities, undergrounding of parallel overhead utility lines, and improved bicycle and pedestrian accommodations. • Since this is a County road, the City cost share includes 10% of road construction, 50% of storm sewer, 100% water/sewer utility replacement, and any additional streetscape elements not cost shared by the County. • Annual maintenance costs for road will be the responsibility of the County. There will be no increase in operating costs for the City. • Funding for the project will be provided by the planned issuance of a Street Reconstruction Bonds, Municipal State Aid, Federal Grants, and the County. 77th Street Underpass - $30,500,000 • Initial design of the project began in 2016. • The project will extend 77th Street under Trunk Highway 77 to connect to the 24th Avenue Interchange at 1-494. • The project will include bike and pedestrian accommodations. • Funding for the project will include Federal grants, State bonding funds, Municipal State Aid and County grants. • Annual operating costs should increase as a result of this project. How much those costs will increase has yet to be determined. Bicycle and Pedestrian Improvements - $80,000 • Bike and pedestrian facilities would be installed in the year following mill and overlay improvements. • Funding for the improvements would come from municipal state aid funds. • Operating costs would be expected to increase slightly in order to maintain the new facilities. Operating costs are expected to increase 3%-5% annually in order to maintain these improvements. Mill and Overlay Program - $3,250,000 • This is the sixth and final year of a planned six year timeframe and when completed 85 miles of residential roads will be milled and overlaid, as well as the repair of catch basins, manhole covers, and the repair of curb and gutter. • Total estimated cost of the six year program is $19,500,000, with funding to be provided by the issuance of Street Reconstruction bonds, with the debt service on the bonds paid by gas and electric utility franchise fees. • The project should significantly reduce annual operating costs on city roadways into the near future. -236- Public Facilities Replacement of Central Garage Equipment - $680,000 • This represents the replacement of motor pool equipment used by General Fund departments. Budgeted replacement cost for 2019 is $655,000. With funding for the replacement coming from a levy of property taxes as part of the City's general tax levy. • Regular, scheduled replacement of equipment will reduce the amount of repair costs. Typically, repair costs accelerate as the age of equipment increases. Consequently, the City should realize lower repair costs with newer equipment. Technology Replacement - $135,000 • This represents replacement of outdated equipment and acquisition of new technology for the City's computer network. Budgeted equipment costs for 2019 total $135,000. Funding will come from the levying of property taxes as part of the City's general tax levy. • Repair expenses accelerate as the age of equipment increases. The City will realize lower maintenance costs by replacement of equipment on a regular schedule. Sewer Main Lining - $300,000 • The wastewater collection system was installed in the late 1950's and consists of VCP (Vitrified Clay Pipe). • Lining consists of the installation of a liner in the existing clay pipe, expanding/heating then is applied and the liner adheres to the existing clay pipe. • This technique is widely used in the wastewater industry and is able to be done at a fraction of the cost of cutting open a street and installing a new line. • Consequently, this should reduce maintenance costs on sewer lines and extend their useful life. • Funding will be provided through the operations of the sewer utility. Lime Filter Press Rehabilitation - $70,000 • The Lime Filter presses were newly installed in 2008. • The presses include numerous components that were over time and require replacement. • Replacement of the components will result in a more efficient and reliable operation and extend the useful life of the filter presses. • With the rehabilitation, maintenance costs will decrease significantly. • Funding for the project will come from water utility operations. City Wide Water Meter Upgrade - $1,340,000 • The current city-wide system of 11,000 water meters was installed in 2007. This system requires utility employees to drive by each property to obtain meter readings. • The current system is failing and maintenance is becoming costly and time consuming. • The proposed new system will have a signal read radio device which eliminates the need to drive by each property. • The new system will reduce operating costs and allow the utility divisions to operate much more efficiently. • Funding for the project will be provided through the operations of the water utility. - 237 - Rehabilitation of Stormwater Collection System Manhole Structures - $100,000 • The stormwater collection system was installed in the mid 1950's and is constructed of brick structures. • Staff has encountered structures that are passing water between the bricks. • The rehabilitation of the structures consists of installing a liner inside the existing structure. The liner is installed by heating the liner which causes it to adhere to the bricks. • The lining of the structures will reduce operating costs and increase the life expectancy by 30 years. • Funding will be provided from stormwater operating revenues. Rehabilitation of Stormwater Collection Mains - $100,000 • The stormwater collection system was installed in the 1950's and is comprised of mostly reinforced concrete pipe (RCP). • A cleaning and inspection program is underway to determine the condition of the mains. • Mains that are identified as being in poor condition and not in need of upsizing for capacity will be rehabilitated using a cast -in -place -pipe lining method. • The rehabilitation will reduce maintenance costs and extend the life of the mains by up to 75 years. • Funding will be provided from stormwater operating revenues. Sludge Tank Mixer Upgrade - $90,000 • The current sludge tank mixers are submersible in style sit in a high pH environment. • Do to this style of mixers, they require constant maintenance at a high cost. • The mixer upgrade would be a floor mounted style and be out of the harsh pH environment, thus reducing maintenance costs and improving safety. • Funding will be provided from water utility operating revenues. Stormwater Pond Dredging - $200,000 • The City's stormwater is treated in a regional system of stormwater ponds. • Over time sediments and pollutants build up at the bottom of the ponds requiring removal through dredging. • Dredging will return the ponds to original capacity and result in improved pond water quality. • Funding will be provided through stormwater utility operating revenues. Taft Dumpsite Improvements - $70,000 • The Public Works Department utilizes this site for temporary storage of construction and maintenance materials throughout the year. • At times due to rain and snow melt the site is unusable. • The project will grade, pave and install permanent erosion control measures for the entire site thus reducing maintenance costs at the site. • Funding will be provided through stormwater utility operating revenues. -238- CAPITAL IMPROVEMENT FUNDS - APPROPRIATION 2019 Budget 2019 Revised 2020 Budget RECREATION AND OPEN SPACE Park Maintenance/Wood Lake Fence Repair $ 50,000 R $ 50,000 1 $ 50,000 R Community Center/Wood Lake Building Repair 50,000 R 50,000 1 50,000 R Recycling System in Parks 45,000 R 45,000 1 - Park Play Equipment Replacement 225,000 R 225,000 1 - Dog Park #1 80,000 R 80,000 1 - Augsburg Park Play Equipment - - 180,000 R Madison Park Play Equipment - - 85,000 R Washington Park Play Equipment - - 85,000 R Ice Arena Refrigeration Project - - 280,000 R 3,400,000 1 TOTAL RECREATION/OPEN SPACE RIGHT OF WAY IMPROVEMENTS 66th Street Reconstruction 77th Street Underpass Lyndale Avenue Reconstruction Pedestrian Improvements Bicycle Improvements Mill & Overlay TOTAL RIGHT OF WAY IMPROVEMENTS PUBLIC FACILITIES Replacement Central Garage Equipment Technology Replacement City Wide Water Meter Upgrade Sanitary Sewer Main Lining Wood Lake Lift Station Renovation Emergency Water Interconnect Lift Station No. 3 Control Panel Rehab. of Stormwater Collection Manhole Structures Rehab. of Stormwater Collection Mains Lime Filter Press Rehabilitation Sludge Tank Mixers Upgrade Stormwater Pond Dredging Taft Dumpsite Improvements TOTAL PUBLIC FACILITIES TOTAL PROJECTS PROJECT FUNDING BY SOURCE $ 450,000 $ 450,000 $ 4,130,000 $ 2,200,000 B $ 2,200,000 B $ 1,850,000 M 1,500,000 M 1,500,000 M - 8,000,000 SB - 450,000 SB 2,500,000 C - - 200,000 TR - - 9,500,000 B 9,500,000 B - 450,000 M 450,000 M - 50,000 X 50,000 X - 40,000 M 40,000 M 40,000 M 40,000 M 40,000 M 3,250,000 FF 3,250,000 FF 3,250,000 FF $ 27,690,000 $ 17,030,000 $ 5,630,000 $ 665,000 T $ 665,000 T $ 680,000 T 135,000 T 130,000 T 135,000 T 1,025,000 U 1,340,000 U 1,340,000 U 200,000 U 300,000 U 300,000 U 35,000 U - - 750,000 U - - 25,000 U 30,000 U - 100,000 U 100,000 U 100,000 U - - 100,000 U - - 70,000 U - - 90,000 U - - 200,000 U - - 60,000 U - - 10,000 C $ 2,935,000 $ 2,565,000 $ 3,085,000 $ 31,075,000 $ 20,045,000 $ 12,845,000 (B) G.O. Street Reconstruction Bonds $ 11,700,000 $ 11,700,000 $ - (C) Hennepin County 2,500,000 - 10,000 (FF) Franchise Fees 3,250,000 3,250,000 3,250,000 (1) Internal Funding - 450,000 3,400,000 (M) Municipal State Aid 1,990,000 2,030,000 1,930,000 (R) Special Revenues 450,000 - 730,000 (SB) State Bonding 8,000,000 - 450,000 (T) Property Taxes 800,000 795,000 815,000 (TR) Three Rivers Park District 200,000 - - (U) User Fees 2,135,000 1,770,000 2,260,000 (X) Xcel Energy Rate Payers 50,000 50,000 - TOTAL ESTIMATED REVENUES $ 31,075,000 $ 20,045,000 $ 12,845,000 Those projects supported by user fees (U) are also a part of the Enterprise Fund capital outlay budgets. -239- BUDGET SUMMARY CAPITAL IMPROVEMENT FUNDS 2020 RECREATION & OPEN SPACE Park Maintenance/Wood Lake Fence Repair Community Center/Wood Lake Building Repar Augsburg Park Play Equipment Madison Park Play Equipment Washington Park Play Equipment Ice Arena Refrigeration Project TOTAL RECREATION & OPEN SPACE RIGHT OF WAY IMPROVEMENTS 66th Street Reconstruction 77th Street Underpass Pedestrian Improvements Bicycle Improvements Mill & Overlay TOTAL RIGHT OF WAY IMPROVEMENTS PUBLIC FACILITIES Replacement Central Garage Equipment Technology Replacement City Wide Water Meter Upgrade Sanitary Sewer Main Lining Rehab. of Stormwater Collection Manhole Structures Rehab. of Stormwater Collection Mains Lime Filter Press Rehabilitation Sludge Tank Mixers Upgrade Stormwater Pond Dredging Taft Dumpsite Improvements TOTAL PUBLIC FACILITIES TOTAL PROJECTS PROJECT FUNDING BY SOURCE (C) Hennepin County (1) Internal Funding (FF) Franchise Fees (M) Municipal State Aid (R) Special Revenues (SB) State Bonding (T) Property Taxes (U) User Fees PROJECT EXPENDITURES $ 50,000 R 50,000 R 180,000 R 85,000 R 85,000 R 280,000 R 3,400,000 1 $ 4,130,000 $ 1,850,000 M 450,000 SB 40,000 M 40,000 M 3,250,000 FF $ 5,630,000 $ 680,000 T 135,000 T 1,340,000 U 300,000 U 100,000 U 100,000 U 70,000 U 90,000 U 200,000 U 60,000 U 10,000 C $ 3,085,000 $ 12,845,000 $ 10,000 3,400,000 3,250,000 1,930,000 730,000 450,000 815,000 2,260,000 $ 12,845,000 - 240 - 2021 - 2024 CAPITAL IMPROVEMENT PLAN - CITY OF RICHFIELD, MINNESOTA PROJECTS RECREATION OPEN SPACE DEVELOPMENT 1 Park Maintenance/Wood Lake Fence Repair 2 Community Center/Wood Lake Building Repair 3 Donaldson Park Play Equipment 4 Donaldson Park Shelter Renovation 5 Adams Hill Park Soccer Field 6 Christian Park Play Equipment 7 Roosevelt Park Parking Lot Expansion 8 Roosevelt Park Soccer Fields 9 Monroe Park Play Equipment 10 Splash Pad Outdoor Pool 11 Wood Lake Nature Center Facility 12 Freemont Park Play Equipment 13 Sheridan Park Play Equipment 14 Outdoor Pool Liner Replacement 15 16 Taft Park Shelter Renovation 17 TOTAL RECREATION & OPEN SPACE 18 19 (R) Special Revenue 20 (0) Other Funding Source 21 (OR) Other Recreation Funding 22 TOTAL FUNDING BY SOURCE L3 24 25 PROJECTS 26 27 RIGHT OF WAY IMPROVEMENTS 28 65th Street Reconstruction 29 77th Street Underpass 30 31 32 69th Street Reconstruction 33 34 70th Street Reconstruction 35 36 76th Street West Reconstruction 37 38 39 Humboldt Ave/Lakeshore Drive Recon. 40 Nicollet Avenue Reconstruction 41 42 Penn Avenue Reconstruction 43 Pedestrian Improvements 44 Bicycle Improvements 46 47 48 (B) G.O. Improvement Bonds 49 (C) Hennepin County 50 (F) Federal 51 (M) Municipal State Aid 52 (0) Other Funding 53 (SB) State Bonding 54 (TR) Three Rivers Park District 55 (X) Xcel Energy 56 TOTAL FUNDING BY SOURCE 57 Recommended and Scheduled for Four Year Period TOTAL* CIP COST 2021 2022 2023 2024 Beyond 2024 $ 250,000 $ 50,000 R $ 50,000 R $ 50,000 R $ 50,000 R $ 50,000 R $ 320,000 50,000 R 120,000 R 50,000 R 50,000 R 50,000 R $ 100,000 100,000 R - - - - $ 250,000 250,000 R - - - - $ 25,000 - 25,000 R - - - $ 85,000 - 85,000 R - - - $ 50,000 - 50,000 R - - - $ 120,000 - 120,000 R - - - $ 90,000 - - 90,000 R - - $ 260,000 - - 260,000 R - - 15,600,000 O $ 85,000 - - - 85,000 R - $ 90,000 - - - 90,000 R $ 450,000 - - - - 450,000 R $ 150,000 - - - - 150,000 OR $ 400,000 400,000 R $ 2,725,000 $ 450,000 $ 450,000 $ 16,050,000 $ 275,000 $ 1,100,000 $ 2,575,000 $ 450,000 $ 450,000 $ 450,000 $ 275,000 $ 950,000 $ 15,600,000 - - 15,600,000 - - $ 150,000 150,000 $ 18,325,000 $ 450,000 $ 450,000 $ 16,050,000 $ 275,000 $ 1,100,000 TOTAL* CIP COSTS 2021 2022 2023 2024 Beyond 2024 $ 9,000,000 $ 9,000,000 B $ - $ - $ - $ - $ 12,600,000 7,000,000 F 5,600,000 SB - - - $ 8,100,000 7,600,000 O 500,000 M - - - $ 300,000 - 300,000 TR - - - $ 4,500,000 - - 4,500,000 B - - $ 500,000 - - 500,000 M - - $ 2,500,000 - - - 2,500,000 8 - $ 100,000 - - - 100,000 X - $ - - - - - 3,500,000 B $ - - - - - 1,000,000 M $ - - - - - 800,000 X $ 4,000,000 - - - - 4,000,000 B $ 5,000,000 - - - - 5,000,000 B $ 8,000,000 - - - - 8,000,000 C $ 5,000,000 - - - - 5,000,000 B $ 8,080,000 40,000 M 40,000 M - - 8,000,000 C $ 80,000 40,000 M 40,000 M - - - $ 67,760,000 $ 23,680,000 $ 6,480,000 $ 5,000,000 $ 2,600,000 $ 35,300,000 $ 33,500,000 $ 9,000,000 $ - $ 4,500,000 $ 2,500,000 $ 17,500,000 $ 16,000,000 - - - - 16,000,000 $ 7,000,000 7,000,000 - - - - $ 2,160,000 80,000 580,000 500,000 - 1,000,000 $ 7,600,000 7,600,000 - - - - $ 5,600,000 - 5,600,000 - - - $ 300,000 - 300,000 - - - $ 900,000 100,000 800,000 $ 73,060,000 $ 23,680,000 $ 6,480,000 $ 5,000,000 $ 2,600,000 $ 35,300,000 sz51111 2021 - 2024 CAPITAL IMPROVEMENT PLAN - CITY OF RICHFIELD, MINNESOTA Recommended and Scheduled for Four Year Period 58 PROJECTS TOTAL* 59 CIP COSTS 2021 2022 2023 2024 Beyond 2024 60 PUBLIC FACILITIES 61 Replacement Central Garage Equipment $ 2,840,000 $ 695,000 TL $ 715,000 TL $ 715,000 TL $ 715,000 TL $ - 62 Technology Replacement $ 540,000 135,000 TL 135,000 TL 135,000 TL 135,000 TL - 63 City Wide Water Meter Upgrade $ 1,340,000 1,340,000 U - - - - 64 Lime Filter Press Rehabilitation $ 70,000 70,000 U - - - - 65 Water High Service Pumps $ 17,000 17,000 U - - - - 66 $ 20,000 20,000 X - - - - 67 Emergency Water Interconnect with Neighb. Comm. $ 1,500,000 - 1,500,000 U U - - 68 Clarifier Rake Assembly $ 250,000 - - 250,000 U - - 69 Roof Replacement Wells 2 & 3 $ 25,000 - - 25,000 U - - 70 Roof Replacement Wells 4, 5, & 6 $ 60,000 - U 60,000 U - 71 Water Plan Roof Replacement $ 450,000 450,000 U 72 Rehabilitation of Stormwater Collection Mains $ 500,000 100,000 U 100,000 U 100,000 U 100,000 U 100,000 U 73 Rehab. of Stormwater Collection Manhole Structures $ 500,000 100,000 U 100,000 U 100,000 U 100,000 U 100,000 U 74 Sanitary Sewer Main Lining $ 1,500,000 300,000 U 300,000 U 300,000 U 300,000 U 300,000 U 75 Stormwater Pond Dredging $ 400,000 - 200,000 U - 200,000 U - 76 Watermain Rehabilitation $ 600,000 200,000 U 200,000 U 200,000 U 77 TOTAL PUBLIC FACILITIES $ 10,612,000 $ 2,777,000 $ 3,050,000 $ 1,825,000 $ 1,810,000 $ 1,150,000 78 79 (TL)Tax Levy $ 3,380,000 $ 830,000 $ 850,000 $ 850,000 $ 850,000 $ - 80 (U) User Fees $ 7,212,000 1,927,000 2,200,000 975,000 960,000 1,150,000 81 (X) Xcel Energy $ 20,000 20,000 82 TOTAL FUNDING BY SOURCE $ 10,612,000 $ 2,777,000 $ 3,050,000 $ 1,825,000 $ 1,810,000 $ 1,150,000 83 84 SUMMARY PROJECTS 85 86 Recreation/Open Space Development $ 18,325,000 $ 450,000 $ 450,000 $ 16,050,000 $ 275,000 $ 1,100,000 87 Right of Way Improvements $ 73,060,000 23,680,000 6,480,000 5,000,000 2,600,000 35,300,000 88 Public Facilities $ 10,612,000 2,777,000 3,050,000 1,825,000 1,810,000 1,150,000 89 TOTAL CAPITAL PROJECTS $ 101,997,000 $ 26,907,000 $ 9,980,000 $ 22,875,000 $ 4,685,000 $ 37,550,000 90 91 (B) G.O. Improvement Bonds $ 33,500,000 $ 9,000,000 $ - $ 4,500,000 $ 2,500,000 $ 17,500,000 92 (C)Hennepin County $ 16,000,000 - - - - 16,000,000 93 (F) Federal $ 7,000,000 7,000,000 - - - - 94 (M) Municipal State Aid $ 2,160,000 80,000 580,000 500,000 - 1,000,000 95 (0) Other Funding $ 23,200,000 7,600,000 - 15,600,000 - - 96 (OR) Other Recreation Funding $ 150,000 - - - - 150,000 97 (R) Special Revenue $ 2,575,000 450,000 450,000 450,000 275,000 950,000 98 (SB) State Bonding $ 5,600,000 - 5,600,000 - - - 99 (TL)Tax Levy $ 3,380,000 830,000 850,000 850,000 850,000 - 100 (TR) Three Rivers Park District $ 300,000 - 300,000 - - - 101 (U) User Fees $ 7,212,000 1,927,000 2,200,000 975,000 960,000 1,150,000 102 (X)Xcel Energy $ 920,000 20,000 100,000 800,000 103 TOTAL FUNDING SOURCES $ 101,997,000 $ 26,907,000 $ 9,980,000 $ 22,875,000 $ 4,685,000 $ 37,550,000 104 * Total CIP costs do not include any project costs reflected in the 2020 CIB. szyRM 2020 Capital Improvement Budget Sources and Uses Where the Money Comes From (Sources) Special FY 2020 State Bonding Revenues—', evenues 4% Municipal State User Fees 6% Aids 18% 15% Hennepin County 0% I� Franchise Fees Internal Funding 25% 26% Property Taxes 6% Where the Money Goes (Uses) FY 2020 Public Facilities 24% Right of Way Improvements - 44 Recreation and Open Space 32% The City of Richfield's funding for capital projects comes from a variety of sources, but generally falls into one of several categories: federal grants, state money, county funds, local revenues, franchise fees, user fees, and bond proceeds. Total planned funding for 2020 is $12,845,000. Capital project expenditures are classified into three specific programs: Recreation and Open Space, Right of Way Improvements and Public Facilities. Total planned expenditures for 2020 are $12,845,000. - 243 - BUDGET SUMMARY CAPITAL IMPROVEMENT RESERVE FUND 2019 REVISED AND 2020 PROPOSED 2018 2019 2019 2020 Actual Budget Revised Budget FUND BALANCE, JANUARY 1 $ 8,054,423 $ 8,715,143 $ 8,678,352 $ 7,910,562 Revenues Intergovernmental 1,079,280 1,229,280 1,035,640 1,035,640 Other revenues 101,388 71,130 71,130 94,230 Interest earnings 127,985 57,000 125,000 125,000 Total Revenues 1,308,653 1,357,410 1,231,770 1,254,870 Expenditures Other services & charges 79,340 - - - Capital outlay 155,384 53,250 53,250 - Total Expenditures 234,724 53,250 53,250 - Excess of revenues over expenditures 1,073,929 1,304,160 1,178,520 1,254,870 Operating Transfers In (Out) General Fund - (656,620) (246,310) (700,000) Special Revenue Funds (170,000) - - - Capital Projects Funds (280,000) - (1,450,000) - Internal Service Funds - (250,000) (250,000) (250,000) Net Transfers (450,000) (906,620) (1,946,310) (950,000) FUND BALANCE, DECEMBER 31 $ 8,678,352 $ 9,112,683 $ 7,910,562 $ 8,215,432 -244- THIS PAGE WAS LEFT BLANK INTENTIONALLY -245-