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Home My WebLink About2021-08-09 City Council Workshop PacketAGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 6:00 P.M. Monday, August 9, 2021 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. UNFINISHED BUSINESS None E. NEW BUSINESS 1. Budget Workshop #1 F. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK E1 CITY COUNCIL WORKSHOP STAFF REPORT Meeting Date August 9, 2021 REPORT TO: Melinda Coleman, City Manager REPORT FROM: Ellen Paulseth, Finance Director PRESENTER: Ellen Paulseth, Finance Director AGENDA ITEM: Budget Workshop #1 Action Requested: ❑ Motion ✓ Discussion ❑ Public Hearing Form of Action: ❑ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: The City is required to file a preliminary property tax levy for fiscal year 2022 with Ramsey County in September of 2021. The City Council must adopt the final 2022 tax levy by December 30, 2021. The City Council may decrease the proposed tax levy prior to final adoption, but may not increase the proposed levy after it is filed with the County. Recommended Action: No action is required. Staff requests direction on the policy decisions outlined in the presentation and attachments. Fiscal Impact: Is There a Fiscal Impact? ❑ No ✓ Yes, the true or estimated cost is $24,457,673 Financing source(s): ✓ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: N/A Strategic Plan Relevance: Financial Sustainability ✓ Integrated Communication ✓ Targeted Redevelopment Operational Effectiveness ✓ Community Inclusiveness ✓ Infrastructure & Asset Mgmt. The budget impacts all areas of the strategic plan and sets spending policy for the next year. Background The attached budget proposal document describes the City Manager's 2022 proposed budget and tax levy. Specific goals and challenges for the 2022 preliminary budget include a 5.3% levy increase; restoration of parks levy; increased insurance; and an increase in debt service. Attachments 1. City Manager's 2022 Budget Overview 2. PowerPoint Workshop Packet Page Number 1 of 40 E2, Attachment 1 Maplewood 171, City Manager's 2022 Budget Proposal August 9, 2021 6:00 PM Workshop Packet Page Number 2 of 40 E2, Attachment 1 Contents How is the Preliminary Budget established? How does the Preliminary Budget affect the tax levy? What changed in the tax levy from last year? What will the Preliminary General Fund Budget accomplish? Where does the money go? Where does the money come from? What was not funded in the Preliminary Budget? How do we compare? General Fund summary Page 1 Page 2 Page 3 Page 4-8 Page 9 Page 10 Page 11 Page 12 Page 13 Workshop Packet Page Number 3 of 40 E2, Attachment 1 How is the Preliminary Budget Established? Calculating Departmental Operating Budgets Each year, department heads build a preliminary budget from the ground up using a zero -base approach. Staffing levels are analyzed with the city manager and the finance department provides personnel cost estimates, based on labor contracts in place. Conservative estimates are generated for positions with open contracts. The finance department also generates departmental estimates for large, routine expenditures such as insurance and utilities. Internal technology and fleet charges are calculated by the appropriate department head and the finance department. All other line items are calculated by individual department heads. A summary of the budget, including a narrative explaining changes over the prior year, is provided to the city manager and finance director. Capital Expenditure Budgets The Capital Improvement Plan (CIP) forms the basis for the capital outlay budget in the budget year. Capital Improvement Plan expenditures are appropriated each year through the budget process. Therefore, 2022 CIP projects will be included in the 2022 city budget. However, each project will still require Council approval at the time the project commences. CIP projects are evaluated in the context of the current budget process to provide for the best possible alignment of these two processes. Administrative Review Process The city manager and assistant city manager review all departmental budgets to ensure that departmental objectives align with the city's strategic goals, and that expenditure levels are appropriately linked to desired outcomes. Staffing levels of all departments are analyzed on an annual basis, to ensure the adequate allocation of resources to meet strategic objectives. The city manager, assistant city manager and finance director meet to review departmental budgets in the aggregate and discuss overall goals for the budget and tax levy. A preliminary tax levy target is established. Analytical Review The finance department analyzes every line item of the city budget to ensure accuracy and reasonableness. This review is conducted by both the finance director and assistant finance director. Personnel costs are compared against the original estimates. A five-year trend analysis is conducted on line items for the large-scale purchase of commodities, such as road salt and motor fuel, as prices and quantities can be volatile. The budget amount is based on the average yearly expenditure for these items, rather than the worst -case or best -case scenario. Line item expenditures for uniform allowances and other employment necessities are budgeted based on how much the city expects to spend, rather than the full contractual allotment. These budgets are established through trend analysis and employee counts. Budgets for contracted professional services are calculated using a zero -base approach, based on the amount of services required in the budget year to meet strategic objectives. The finance director recommends line item adjustments to the city manager in an amount sufficient to meet target goals, if possible. Items that require policy review are identified by the city manager and finance director and are presented to the city council for discussion. Workshop Packet Page Number 4 of 40 E2, Attachmentl How does the Preliminary Budget Affect the Tax Levy? City Manager's Budget Proposal The city manager's 2022 budget proposal includes a 5.7% increase overall, or $1,332,343, in the total city tax levy. The Debt Service Fund levy increased 2.1%, due to the debt for the new fire station. The details of the major changes and challenges are included on the next page. The city manages approximately $70M in operating and capital expenditures in over 50 funds on an annual basis. Not all of these funds require property tax revenues, but are funded through other components of the city's revenue stream. Shown below is a year -over -year comparison of property tax levies by fund: General Fund The General Fund accounts for nearly 75% of the total city tax levy on an annual basis. Levies for debt service funds are legally obligated. Thus, most of our attention is devoted to the General Fund for the purpose of establishing the levy. Other funds include capital project funds, equipment funds, and the EDA fund. .e Preliminary 2022 Tax Levy MM qIW ■General Fund ■ Debt Service Funds ■ Other Funds 11 & ■ General Fund ■ Debt Service Funds Other Funds Workshop Packet Page Number 5 of 40 E2, Attachmentl What Changed in the Tax Levy from Last Year? 2021 Final Property Tax Levy $23,217,300 Debt Service $102,041 t Add Playground back in to CIP Fund 125,000 t Increase in Capital Funds 64,162 t Payroll Increases 3% Adjustment, Steps & FTE's 802,000 t Consulting Fees 30,000 t Increase to fund Liability Insurance 50,000 t Increase in Capital Fleet Charges 50,000 t Decrease in DMV Revenue 62,000 t Decrease in Rental Housing Revenue 70,000 t Miscellaneous Net Increases/Decreases 170 t Increases in State Aid (50,000) 1 Increase in Transfers in from Utility Funds (65,000) 1 2022 Proposed Property Tax Levy $24,457,673 Notes The major components related to increased expenditures are debt service requirements, capital needs, and employee payroll. General Fund payroll general adjustments are approximately $426K; benefit increases (including health insurance) are approximately $110K; and increases in FTE's amount to approximately $266K. There are 2.4 additional FTE's budgeted in the General Fund, compared to last year. The budget also reflects a conservative estimate for decreases in specific revenues, including rental housing fee collections and DMV fees. The amount of DMV business lost to the State mail -in service is unknown at this point. Intergovernmental revenue will increase slightly, including State police and fire aids and Local Government Aid (LGA). Workshop Packet Page Number 6 of 40 E2, Attachmentl What will the Preliminary General Fund Budget Accomplish? Expenditures by Category: Expenditures will increase $986,330 compared to the 2021 Original Budget, as follows: Personnel — Increase of $801,430 compared to 2021 ✓ Estimated wage adjustment for all employees 3.0%; ✓ Workers' compensation insurance stabilized due to new deductible structure; ✓ Increase of $25K in contribution for employee leave liabilities; ✓ Estimated health and dental insurance increase of 0.0%; ✓ Increase of 3.05 FTE. Contractual Services — Increase of $190,490 compared to 2021 ✓ Increase in liability insurance $50K; ✓ Increase in Fleet Fund charges for capital needs $62K; ✓ Increase in IT Fund interdepartmental needs $23K ✓ Increase in consulting contracts $30K; ✓ Budgeting software $15K; ✓ Miscellaneous net increases in small contracts and expenses of $10,490. Equipment and Supplies — Decrease of $5,590 compared to 2021 ✓ Small decrease in police supplies. General Fund 2022/2021 Expenditures 17,989,850 2S,4LV 963,800 969,390 WAGES & BENEFITS COMMODITIES ❑ 2022 ❑ 2021 1 7 4,706,450 4,515,960 CONTRACTED SERVICES Workshop Packet Page Number 7 of 40 E2, Attachmentl Expenditures by Function: Significant changes in expenditures by functional area are described below: GENERAL FUND 2022 EXPENDITURES BY FUNCTION Economic Public Works Development General 14.8% 6.7% Government 15.9% Parks & Recreation 6.5% ruauc sarery 56.1% General Government — Increase of $304,500 or 8.8% ✓ City Council budget increased $5,120 or 3.3%, primarily due to a biennial salary adjustment for the City Council; ✓ Administration budget increased $12,400, or 2.7%, due to inflationary and step salary increases; ✓ Human Resources budget increased $65,740, or 13.9%, due to the addition of a two consulting contracts (CM Search $20K and Salary Study $10K) and an increase of 0.2 in FTE's for the HR Assistant; ✓ Finance budget increased $50,510, or 6.4% due to inflationary salary and step adjustments and an appropriation for a new financial software subscription; ✓ City Clerk budget decreased $22,500, or 3.5%, due to restructuring of staff at lower salary rates; ✓ Deputy Registrar budget increased $179,370 or 27.7% due to an increase of 1.8 FTE's for the appointment system created during the pandemic; ✓ Election costs increased $12.860, or 10.7%, due to election judge pay increases and increased maintenance contract costs on election tabulation equipment. Community Development — Increase of $28,620 or 1.9% ✓ Community Development budget increased $65,020, or 7.8%, due to a reorganization of employees with Building Inspections and Parks; ✓ Building inspections decreased $36,400, or -5.1% due to a reorganization of employees with Community Development. The net increase between the departments results from inflationary salary increases and step increases. Workshop Packet Page Number 8 of 40 E2, Attachmentl Public Safety — Increase of $441,960 or 3.4% ✓ Increase of $330,650, or 3.2% in the Police Department, due to inflationary salary and step increases; ✓ Increase of $111,310, or 4.6%, in the Fire Department due to inflationary salary increases and the addition of .75 FTE, mitigated by the reorganization of staff. Parks & Recreation — Increase of $86,270 or 5.9% ✓ Parks Administration increased $56,340 or 15.75%, primarily due to the transfer of environmental activities from Community Development to Parks; ✓ Parks Maintenance increased $34,780, or 4.2%, due to inflationary salary and step increases; ✓ The Open Space Management budget increased $3,110 or 5.7%; ✓ Nature Center decreased $7,700 because the budget was absorbed by Parks; ✓ The 4t" of July celebration budget decreased $260. Public Works — Increase of $125,980 or 3.7% ✓ Building Operations budget increased $5,790, or 0.9% due to inflationary salary increases; ✓ The Public Works administration budget increased $19,150, or 5.9%, due to inflationary salary increases and Accela software fees; ✓ The Street Maintenance budget increased $36,090, or 3.7%, due to inflationary salary increases; ✓ The Engineering budget increased $31,840, or 4.85%, due to inflationary salary and step increases and fleet charges; ✓ The Snow and Ice Control budget increased $26,160, or 4.85% due to inflationary salary and step increases and fleet charges; ✓ The Forestry budget increased $6,950, or 2.7%, due to inflationary salary increases. Workshop Packet Page Number 9 of 40 E2, Attachmentl Ravannac Revenues will increase $986,330 compared to the 2021 Original Budget, as follows: General Revenues — Increase of $921,330 compared to 2021 ✓ Property tax revenue will increase $949,170; ✓ Licenses and permits revenue is projected to increase $41K; ✓ Intergovernmental revenue is projected to increase $45K due to an increase in police and fire aid, - Charges for services are projected to decrease $162,700, due to a decrease in rental housing fee revenue, and a projected decrease in DMV revenues based on a conservative estimate of the volume of customers returning after a potential shift to the State online renewal and mail -in systems; ✓ Decrease in Fine revenue of $10K due to recent trends; ✓ Increase in Interest revenue of $10,000, due to expected higher yields; ✓ Increase in Miscellaneous revenue of $48,660, due to the addition of recreation rental fees back into the budget. Other Financing Sources — Increase of $65,000 compared to 2021 ✓ Increase in Transfers In of 65,000, primarily due to an increase of $40K from the Street Fund. In addition, the 2022 budget reflects TIF administration charges as transfers rather than fees. Transfers in consist of administrative transfers from the utility funds, TIF funds and the Street Revitalization Fund. 25,000,000 20,000,000 15,000;000 1Q,0DQa s,, wo General Fund O /0 1 Revenue 7R_27q_r%nn S,449,440 5 486 600 =I 23,760,100 PROPERTY TAXES OTHER REVENUES TOTALREVENUES Workshop Packet Page Number 10 of 40 E2, Attachmentl Personnel Budgeted full-time equivalent (FTE) employees increased overall by 3.0 for budget year 2022. The 2022 budgeted FTE's reflect the addition of 1.8 full-time DMV staff, funded through the CARES grant in 2020- 2021. In addition, the HR Assistant and Planner positions both increased by .20 FTE's. Fire Department staffing levels increased by .75 FTE, with the addition of a new firefighter position. Part-time employees increased .05 FTE. The chart reflects total employees across all funds, but does not include temporary or volunteer employees. The year 2018 reflects a reduction in force due to the YMCA taking over operations of the Maplewood Community Center. In 2019, the City moved from a paid -on -call fire department model to a full-time firefighter/paramedic model. In 2020, the City added employees to staff the new rental housing inspection program and a police officer who was funded through an auto -theft grant. Budgeted Full -Time Equivalent Employees 180 178 176 174 172 170 168 166 164 162 1111 160 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Workshop Packet Page Number 11 of 40 E2, Attachmentl Where does the Money Go? Each year, about 76% of the General Fund budget consists of personnel costs. Nearly 20% represents contracted services, including attorneys, auditors, planners, and contractors. Only 4% is spent on commodities, such as asphalt and road salt. This makes it difficult to find savings in the budget without impacting services. The allocation does not change significantly from year to year, as shown below. GENERAL FUND 2022 EXPENDITURES BY CATEGORY Contracted Services 19.89% Commodities 4.07% L ?s & Benefits 76.03% GENERAL FUND 2021 EXPENDITURES BY CATEGORY Contracted Services, 19.84% - Commodities, 4.26% LIM Wages & Benefits, 75.90% Workshop Packet Page Number 12 of 40 E2, Attachmentl Where does the Money Come From? Approximately 77% of the 2022 General Fund revenue stream consists of property tax revenues. Licensing and permit revenue accounts for 5.7%. Charges for services provide 4.9% of General Fund revenues, while intergovernmental revenues provide 5.4%. Transfers in from other funds include internal charges such as engineering and administrative charges. The revenue stream remains somewhat consistent over time, as shown below. Charges for Services 4.9% Intergovernmental 5 Licenses & 5.75 Interest GENERAL FUND 2022 REVENUES 0.3% Misc Fines 0.4% Transfers In 0.6% 5.7% Interest 0.2% Charges for Services Fines r not O 7o/ Intergove 5.5 Licenses & 5.V Taxes Yo GENERAL FUND 2021 REVENUES Misc 0.2% Transfers In 5.7% Taxes Workshop Packet Page Number 13 of 40 E2, Attachmentl What did not get Funded in the Preliminary Budget? There were no departmental requests were identified by the City Manager and Finance Director as enhancements to current service levels, requiring a policy decision. The following programs were cut in the prior year and not restored. Recreation programming $340,000 Nature Center programming $200,000 Additional EDA levy $ 20,000 H RA Levy $100, 000 Every $240,000 increase in expenditures will result in approximately 1% increase in the tax levy. Workshop Packet Page Number 14 of 40 E2, Attachment 1 How Do We Compare? The following chart compares Maplewood's 2019 spending and economic data with similar metropolitan cities. The Office of the State Auditor provided the data, with 2019 spending data being the latest available. 2019 2019 Taxable 2019 Certified 2019 Current 2019 Capital 2019 Debt 2019 Total Debt& Debt Service Outstanding Total Debt Peer City Population Tax Capacity Tax Levy Expenditures Outlay Service Expenditures Capital/Total /Total Exp Bonded Debt Per Capita Brooklyn Center 32,722 18,920,479 18,464,338 24,072,745 13,352,312 4,456,661 41,881,718 42.52% 10.64% 47,340,000 1,447 Andover 32,882 31,604,717 13,103,993 16,601,354 16,389,691 2,013,864 35,004,909 52.57% 5.75% 41,720,000 1,269 Inver Grove Heights 35,321 38,635,056 23,311,169 27,448,128 18,484,619 3,389,457 49,322,204 44.35% 6.87% 47,345,000 1,340 Roseville 36,644 52,105,323 22,025,541 28,665,897 4,668,852 3,341,073 36,675,822 21.84% 9.11% 20,270,000 553 Richfield 36,993 33,813,196 21,651,384 32,308,469 28,470,859 10,528,046 71,307,374 54.69% 14.76% 65,640,000 1,774 Cottage Grove 37,795 34,058,859 15,695,122 24,730,109 36,880,470 3,673,185 65,283,764 62.12% 5.63% 39,595,000 1,048 Shakopee 41,528 48,623,147 19,230,474 30,369,750 9,047,340 3,006,743 42,423,833 28.41% 7.09% 34,660,000 835 Maplewood 41,738 42,052,651 22,109,600 25,642,150 13,331,018 10,388,182 49,361,350 48.05% 21.05% 55,545,195 1,331 St. Louis Park 49,834 68,585,022 33,189,987 66,249,117 16,857,464 4,827,943 87,934,524 24.66% 5.49% 88,560,000 1,777 Apple Valley 54,400 55,787,674 26,350,740 31,151,578 12,696,772 1,455,965 45,304,315 31.24% 3.21% 19,665,000 361 Average 39,986 42,418,612 21,513,235 30,723,930 17,017,940 4,708,112 52,449,981 41.05% 8.96% 46,034,020 1,174 Maplewood %of Average 104.4% 99.1% 102.8% 83.5% 78.3% 220.5% 94.1% 117.1% 234.9% 120.791 113.4% Maplewood's population is slightly larger than the sample group, with the taxable tax capacity slightly less than the same group. The 2019 certified tax levy was 2.8% more than the group average; however, current (operating) expenditures were significantly less. Capital expenditures were considerably lower, as has been the trend. Debt service was higher; however, retirement of principal related to the issuance of refunding bonds is included in debt service for all cities. Maplewood's outstanding bonded debt is still higher than that of the peer group, but is now in third place after leading for many years and taking second place last year. There are two cities with higher debt per capita than Maplewood in 2019. Workshop Packet Page Number 15 of 40 a 77 N 3 0 N n (D LU (D z C 3 07 (D Maplewood 177,1 2022 Budget Overview Workshop #1 August 9, 2021 m D L Budget Workshop Objectives 1.Overview of preliminary budget 2. Budget strategies, goals and challenges 3. General Fund surplus 4. ARPA funding 5. Budget timeline and process 6. Budget policies 0 0 7 C m v m z c Cr m 0 C) 0 416 m D v 0 3 m L Strategic Priorities Financial Stability Integrated Communication Infrastructure Inclusiveness Targeted Redevelops Operational Effectiveness m D L U) S O v m v CD z C 3 m O 0 Preliminary Property Tax Levy 2.0% Levy Increase 4.0% Levy Increase 6.0% Levy Increase TAX INCREASE Amount 464,346 928,692 1,393,038 2022 Levy 23,681,646 24,145,992 24,610,338 m L Tax LevyHistory Average Increase Past Ten Years is 3.0% Ob ro/ 4.0/ 5.0% 0 0 3.5% 3.0% 5.0% 0.0% 2.0 % 5.3 % L 7 How Did the Levy Change? Debt Service $102,041 t Add Playground hack in to CIP Fund 125,000 t Increase in Capital Funds 64,162 t Payroll Increases 3%Adjustment, Steps & Fl"E's 802,000 t Consulting Fees 30,000 t Increase to fund Liability Insurance 50,000 t Increase in Capital Fleet Charges 50,000 t Decrease in DMV Revenue 62,000 t Decrease in Rental Housing Revenue 70,000 t Miscellaneous Net increases/Decreases 170 t Increases in State Aid (50,000) Increase in Transfers in from Utility Funds (65,000) rn D W 0 3 m L General Fund Overview General Fund Funding Sources Property Taxes Revenues Transfers I n Total Funding Sources Expenditures Expenditures Transfers Out Total Expenditures Surplus Fund Balance Original Proposed Actual Budget Estimated Budget Budget % 2020 2021 2021 2022 Incr/(Decr) 17, 347, 522 17, 324, 330 17,150, 000 18, 273, 500 5.48% 5,363,733 4,159, 440 '4,159, 440 4,131, 600 -0.67% 3,401,420 1,290,000 1,290,000 1,355,000 5.04% 26,112, 675 22, 773, 770 22, 599, 440 23, 760,100 4.33% 22,210,961 22,673,770 22,673,770 23,660,100 4.35% 356,071 - - - 0.00% 22, 567, 032 22, 673, 770 22, 673, 770 23, 660,100 4.35% 3,545,643 100,000 (74, 330) 100,000 0.00% m D v 3 m I L y „_ I 77 U) zT O v v m z 3 a m N W O A O 180 178 176 174 172 170 168 166 164 162 160 Staffing Changes Budgeted Full -Time Equivalent Employees 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 m D L 2022 Budget Goals and Challenges • 5.3%Tax Levy Increase Overall • Payroll 3%Employee Adjustments $802,000 • Debt Service Levy Increase $102,041 • Add Back Playground to CIP Levy $125,000 • Increase in Fleet and Capital Funds $114,162 • Projected Reduction in Revenues $132,000 • Potential Tax Petitions $$$ m D v 0 3 m L 77 zT O CD v m z C 3 m N Cal O O Options to Decrease the Levy • Eliminate $100,000 Surplus $100,000 • Restructure one Covid FTE $ 75,000 • Restructure second Covid FTE 95,000 Total $270,000 Note: $240,000 = approximately 7.0% levy increase/decrease m D L General Fund Surplus 2020 • Employee Benefits Fund • Building Fund • Public Safety Equipment Fund • Fleet Fund Total Proposed Allocation $ 300,000 250,000 250,000 200,000 m D v 0 3 m A i 70.00% 60.00% 50.00% — 40.00% 43.49% 30.00% 20.00% 10.00% 0.00% • Actual 2018 ■ *] MIS 110 Fund Balance Projections - General Fund Ratio Minimum Target 41.67% — --Maximum Target 50.00% 1.6696 49.49% 50.68%0 49.20% 47.77% Actual Actual Budget Budget Projected Projected Projected Projected 2019 2020 2021 2022 2023 2024 2025 2026 ARPA Funding $4,326,328.92 • Ladder Truck 2022 • Ambulances/Equipment 2022-24 • Social Worker 2022-2024 • Mall Security Cameras 50% 2022 • YMCA Covid Relief 2022 • Premium Pay Essential Workers 2021 • Covid Response PPE and Wages 2021 • Blight Removal/Affordable Housing 2022-24 • MCC Roof (5 years?) Total $2,150,000 750,000 350,000 40,000 350,000 350,000 350,000 250,000 1,000,000 5.590.000 m D L Maplewood Property Tax Values PR13PERTY �04, Total County Estimated Market TAX f� Value Increase: 3.5°/® Maplewood Median Value Home Increase: C2.8%�/o) Value Increase in Maplewood Residential Property Median Value Home Payable 2021 $251,400 Median Value Home Payable 2022 $258,400 m D L Peer Comparisons 2019 2019 Taxable 2019 Certified 2019 Current 2019 Capital 2019 Debt 2019 Total Debt & Debt Service Outstanding Total Debt Peer City Population Tax Capacity Tax Levy Expenditures Outlay Service Expenditures Capital/Total /Total Exp Bonded Debt Per Capita Brooklyn Center 32,722 18,920,479 18,464,338 24,072,745 13,352,312 4,456,661 41,881,718 42.52% 10.64% 47,340,000 1,447 Andover 32,882 31,604,717 13,103,993 16,601,354 16,389,691 2,013,864 35,004,909 52.57% 5.75% 41,720,000 1,269 Inver Grove Heights 35,321 38,635,056 23,311,169 27,448,128 18,484,619 3,389,457 49,322,204 44.35% 6.87% 47,345,000 1,340 Roseville 36,644 52,105,323 22,025,541 28,665,897 4,668,852 3,341,073 36,675,822 21.84% 9.11% 20,270,000 553 Richfield 36,993 33,813,196 21,651,384 32,308,469 28,470,859 10,528,046 71,307,374 54.69% 14.76% 65,640,000 1,774 Cottage Grove 37,795 34,058,859 15,695,122 24,730,109 36,880,470 3,673,185 65,283,764 62.12% 5.63% 39,595,000 1,048 Shakopee 41,528 48,623,147 19,230,474 30,369,750 9,047,340 3,006,743 42,423,833 28.41% 7.09% 34,660,000 835 Maplewood 41,738 42,052,651 22,109,600 25,642,150 13,331,018 10,388,182 49,361,350 48.05% 21.05% 55,545,195 1,331 St. Louis Park 49,834 68,585,022 33,189,987 66,249,117 16,857,464 4,827,943 87,934,524 24.66% 5.49% 88,560,000 1,777 Apple Valley 54,400 55,787,674 26,350,740 31,151,578 12,696,772 1,455,965 45,304,315 31.24% 3.21% 19,665,000 361 Average 39,986 42,418,612 21,513,235 30,723,930 17,017,940 4,708,112 52,449,981 41.05% 8.96% 46,034,020 1,174 Maplewood %of Average 104.4% 99.1% 102.8% 83.5% 78.3% 220.6% 94.1% 117.1% 234.9% 120.7% 113.4% m D v 0 m L Peer Comparisons over Time 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15, 000, 000 10, 000, 000 5,000,000 I Taxable Market Value and Local Levy History 2014 2015 2016 2017 2018 Maplewood Tax Capacity Peer Average Tax Capacity Maplewood Total Levy Peer Average Local Levy q • m D v 3 m L 70,000,000 60,000,000 k.. 50,000,00o 40,000,000 30,000,000 20,000,000 10,000,000 Peer Spending over Time Spending History 2014 2015 2016 2017 2018 2019 #Maplewood Current Spending �- peer Average Current Spending Maplewood Total Spending peer Average Total Spending m D v 0 3 m L Budget Timeline • August 9, 2021 • August 23, 2021 • September 13, 2021 • December 13, 2021 Budget Workshop #1 Budget Workshop #2 Preliminary Tax Levy Adoption Truth -in -Taxation Hearing Adopt Final 2022 Tax Levy Adopt 2022 Budget 2022-2026 CIP Hearing Adopt 2022-2026 CI P Adopt Financial Policies m D v 3 m I L Budget Process • Department heads calculate budgets, zero -based, with no increase in service levels; • CIP forms basis for capital budget; • Administrative review, strategic plan objectives, performance measures, tax levy target; • Analytical review, finance department; • City manager recommendations; • Council workshops, policy decisions, tax levy. m D m 3 m L Budget Development •Dozens of Staff employees •Hundreds of Hours •Thousands of lines of Code •Millions of Dollars m D L Fund Structure General Fund Functions: General Government Public Safety Public Works Community Development Culture & Recreation Cityof Maplewood Budgetary Funds Governmental Funds (Modified Accrual Basis) Debt Service Revenue Funds Capital Proiects Funds I Funds Charitable Gambling Recreation Programs Police Services Tree Fund Taste of Maplewood Communications Maplewood EDA Grants Capital Improvements Capital Projects Public Improvements Tax Increment Financing Redevelopment Enterprise Funds (Accrual Basis) Ambulance Community Center Environmental Utility Recycling Sewer Street Light rn D m 3 m L 77 zT 0 CD v m z C 3 m <a 0 C) 0 Financial Policies with Impact on Budget Development • Fund Balance (Reserves) Policy • Revenue Management Policy • Operating Budget Policy • Capital Improvement Plan Policy • Debt Management Policy • Public Purpose Expenditure Policy • Grant Management Policy • Capital Assets Policy • Procurement Policy m D L Future How do we plan? 0 Long -Term Financial Management Planning m D v 3 m I L Council Considerations • Affirm Target Tax Levy • Policy Decisions • 2022 CIP Items • Other m D m 0 3 m L Questions? � 1 m D v 3 m I L