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Home My WebLink AboutBudget Workshop PowerPoint2024-2025 Budget Workshop Presentation July 19th, 2023 General Fund-Revenues Prop. Tax 74% Licenses & Permits 10% Intergvt 6% Charges 6% Fines 1% Invest. Inc. 0% Misc. 0%Transfers in 3% 2024 2021 Actual 2022 Actual 2023 Adopted 2024 Prop 2025 Prop Property Taxes $14,691 $15,211 $17,545 $18,473 $20,487 Special Assessments 4 6 3 3 3 Licenses & Permits 3,182 4,387 2,483 2,372 2,227 Intergovernmental 899 889 770 1,603 1,706 Charges for Services 1,895 1,660 1,267 1,568 1,523 Fines 149 143 150 150 153 Investment Revenue -64 -487 125 126 129 Miscellaneous 210 118 53 60 47 Transfers In 617 575 687 709 729 Total General Fund 21,584 22,521 23,084 25,063 27,005 % change 4.3%2.5%8.6%7.7% General Fund-Expenditures 2021 Actual 2022 Actual 2023 Adopted 2024 Prop 2025 Prop Administration $1,290 $1,692 $1,628 $1,766 $1,840 Finance 654 603 649 676 712 City Hall 540 690 626 755 746 Comm. Develop 1,927 2,105 1,954 1,979 2,180 Engineering 402 477 588 629 661 Police & Animal Control 8,194 8,626 9,102 9,797 10,061 Fire & Emg. Mgmt 1,588 1,836 1,768 2,006 2,576 Public Works 3,222 3,534 3,785 4,208 4,459 Parks & Recreation 2,103 2,349 2,576 3,048 3,251 Subtotal 19,920 21,912 22,676 24,864 26,486 Transfers out/Contingency 833 400 410 200 275 Total Expenditures $17,824 $22,312 $23,086 $25,064 $26,761 25.2%3.4%8.6%6.8% Admin 7%Finance 3%City hall 3% CD 8% Eng. 2% Police 39% Fire/Em. Mgmt. 8% Pub. Works 17% Parks & Rec 12% Transfers out 1% 2024 General Government Administration, Clerk, Communications, Human Resources, Finance, EDA, IT, and Community Development General Government General fund divisions 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed 2025 Proposed Mayor & Council $91,497 $104,208 $106,590 $116,370 $118,170 Administration $673,638 $880,389 $950,500 $919,620 $968,745 Clerk & Elections $87,185 $244,432 $110,600 $236,785 $247,055 Legal & Assessing $437,844 $463,872 $458,800 $492,600 $506,400 Finance $653,971 $602,514 $649,030 $676,130 $711,850 Add a footer 6 General Government General fund divisions 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed 2025 Proposed Community Programs $115,288 $137,913 $153,300 $181,335 $140,355 City Hall $424,526 $551,732 $473,100 $574,260 $605,770 Add a footer 7 General Government Administration 2023 Accomplishments •Completed the City Code codification. •Implemented the new Civic Clerk Agenda Software. •Continued to engage employees in various wellness events and activities. •Enrolled to participate in the Racial Equity Dividends Index for the Public Sector through the Center for Economic Inclusion. •Recruited and hired 30 regular employees since July 1, 2022. •Recruited and hired over 200 seasonal employees since July 1, 2022. 2024 Goals •Continue to collaborate with Washington County on elections. •Continue to work on licensing and regulations in accordance with the new cannabis laws. •Update the compensation study previously done in 2020. •BA of $45,000•Successfully negotiate all labor contracts. •Increase employee participation in Wellness Committee sponsored events. 8 Communication Division Reorganization 9 •Appoint Economic Development Director Larson in a dual capacity as Communications Manager. •Hire a Communication Specialist – Marketing and a Communications Specialist -Social Media.These two positions,along with the current Administrative Specialist Bengtson, keep current staffing levels. •Utilizes our current in-house expertise, while reducing Administrative Division costs and increases flexibility for future changes, as may be needed. •Streamlines staff duties and clarifies roles and responsibilities. •Restructure allows for growth of our team as we mentor, train, and create opportunities for them to increase their skills. •Provides a unique opportunity to rethink our communications strategies to enhance our communication efforts with our stakeholders. •Does not change our current Non-Represented Pay Plan. The communications and economic development positions remain in the plan and funded should they need to be uncoupled in the future. General Government Finance •AAA Bond Rating.•Completion of Financial Management Plan.•2022 Audit completed with clean audit opinion.•Successful hiring of two positions in department.•Four positions since May 2022 plus Payroll Specialist•Transition of investment services to managed services.•Transition of ambulance billing services to new provider.•Electronic processing of journal entries and other accounting processes to maximize accuracy and efficiency.•Audit proposal and contract (August 2023).•Monthly General Fund reporting to Department Heads. 2023 Accomplishments 2024 Goals •Implementation of Utility Billing software. •Identify new software and process in Fall 2023•Identify and implement accounts payable electronic processes while strengthening internal controls. •Explore financial reporting needs of staff and providing these reports. 10 Community Development General fund divisions 2021 Actual 2022 Actual 2023 Adopted 2024 Proposed 2025 Proposed Building Inspections $1,343,099 $1,435,966 $1,362,460 $1,372,805 $1,557,975 Planning Zoning $584,357 $669,343 $592,025 $605,600 $622,250 Add a footer 11 Community Development Planning and Building 2023 Accomplishments •Completed and adopted a complete rewrite of the City's Zoning Ordinance •Six approved final plats (2022/2023);455 lots platted •Over 1 million square feet of industrial development approved and constructed in 2022/2023 2024 Goals •Continue long range planning efforts for growth •Continue finding ways to provide high level and efficient levels of customer service •Explore home improvement programs for existing housing stock •Promote development and areas for re- development 12 Community Development Building Permits Permit valuation 13 Community Development Building Permit Revenue 14 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2019 Actual 2020 Actual 2021 Actual 2022 Actual 2023 YTD 2023 Budget 2024 Budget 2025 Budget 2023 Revenue is at 55% of 2023 Budget through 06/30/2023 Community Development 15 Goals of the Program: 1.Provide a financing option to homeowners to encourage reinvestment in their homes and keep the quality of aging homes high. 2.Implement goals in the Housing Chapter of the 2040 Comprehensive Plan: Develop a city-wide housing maintenance program. Program Financing: •Housing TIF District 1-8 for The Cottages was decertified in 2019 with a remaining balance of approximately $381,000. •Remaining housing TIF funds can only be used for other limited housing purposes such as a home improvement loan. Community Development 16 Improvements that may be covered: Air Conditioning Accessibility Code Compliance Decks Doors Driveways Electrical and Plumbing Upgrades Fences Flooring Furnaces Insulation Furnace Kitchen and Bath Remodels Landscaping Roofs Siding Life Safety Windows Community Development 17 Proposed Pilot Program Standards Partnerships: Municipalities generally partner with a loan administration firm like NeighborWorks Home Partners or Center for Energy and Environmental (CEE) to administer the loan programs on the city’s behalf. Loan Amount: $2,000 to $20,000 Term : Up to 15 years. Loan is due upon sale, transfer of title, refinance or if the property ceases to be owner-occupied. Interest Rate: Below market rate Income Limit: two or less individuals 100% of AMI ($124,900) or 3 or more individuals 115 % of AMI ($143,635) Property Eligibility: Must be owner-occupied single family detached and attached. Town houses are only eligible for individual interior repairs. Property Value: N/A Authorizing Agency: City Council/EDA Eligible Improvements: Improvements to the conditions of the exterior of the home including but not limited to roofs, siding, windows, driveways, structural retaining walls, existing fences and other components of the property Improve handicap accessibility Improve energy efficiency (insulation, water heater, mechanical improvements, windows etc.) Correct local or state code deficiencies related to health and safety. Loan Approval: Loan approval is subject to credit and program guidelines set by the City and the loan administration firm. Community Development 18 Discussion Staff is looking for Council direction on the following items. 1.Does the City Council support the creation of a Home Improvement Loan Program? 2.Would Council like to add additional eligible improvements such as improving the value of the home (kitchen, bathroom, basement finishing, etc.)? Eligibility Improvements typically include the following. a.Improvements to the conditions of the exterior of the home including but not limited to roofs, siding, windows, driveways, structural retaining walls, existing fences and other components of the property; b.Improve handicap accessibility; and/or Improve energy efficiency (insulation, water heater, mechanical improvements, windows etc.). c.Correct local or state code deficiencies related to health and safety. Next Steps: If the City Council is supportive of the proposed Home Improvement Loan Program, staff will initiate conversations with loan administration firms and bring draft program back for City Council review at a future meeting. Convention & Visitors Bureau 2023 Accomplishments •Secured an Explore MN matching grant in the amount of $14,000 to be used for marketing and social media advertising. •Created and continue to distribute the 2023 Discover Cottage Grove Visitors Guide. •Successful events and promotions: •Cottage Grove Community Night at the Saints Game •Strawberry Fest Marketplace •One Family Memorial Sports Fest •Social media contest giveaways 2024 Goals •Ensure all seats on the CVB board are filled. Amend bylaws. •Continue to look for creative and impactful ways to help businesses. •Continue to make thoughtful and impactful budgetary decisions based on data, the CVB's mission and vision and unique opportunities that are presented. •Search out and apply for available grants to help fund marketing activities. •Continue to grow social media presence to reach new audiences and potential visitors. •Create a strategic plan. 19 Convention & Visitors Bureau •Lodging tax revenue budgeted at $66,350 for 2023. •75% salary & benefits for Communications Specialist - Marketing position funded by American Recovery Plan Act (ARPA) grant through 2024. •Some items included in projected expenses are tentative and subject to increased lodging tax revenue or grant availability. •Existing fund balance approximately $41,000 to help fund 2025. 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 2021 2022 2023 2024 2025 CG CVB Fund Revenues Expenses 20 EDA 2023 Accomplishments •Began due diligence process for 80th Street Redevelopment. •Attended the ICSC Tradeshow and MNCAR Expo to promote the city. •Completed the HVS Hotel and Market Study. •Authorized an agreement with Hunden Partners for an Arena and Market Implications Study. •Filled all seats on the Board. 2024 Goals •Continue 80th Street Redevelopment Plans. •Continue to market the city to retailers, investors, and developers at ICSC Tradeshow and MNCAR Expo. •Work on due diligence projects at the majestic ballroom site if Washington County EDA Brownfield Redevelopment Grant is approved. •Issue an RFP for creation of an Economic Development Strategic Plan that will include the CVB. Apply for a matching grant from Washington County EDA. •Continue work with 3M, the developer of The Shoppes, and the Majestic Ballroom owner, to increase availability of land on our southern border for commercial and industrial development. 21 EDA •Levy increase from $125,000 to $275,000 in 2024 per FMP to cover salaries. •25% salary & benefits for Communications Specialist – Marketing position funded by EDA. •Continued discussion of HRA Levy. 0 100000 200000 300000 400000 500000 600000 700000 2021 2022 2023 2024 2025 EDA Special Revenue fund Revenues Expenses 22 Information Technology 2023 Accomplishments •Continued improvement of the city’s cyber security posture. •Incident Response Plan Revisions Completed •Added additional security controls and monitoring without budget implication by utilizing services from the Multi-State Information Sharing and Analysis Center •Increased city security awareness training program with over 95% of employee participation and less than 3% phishing test failure rate. •Online services implementations for improved resident and business services. •Responded and closed over 850 help desk tickets as of 7/17/2023. •Organized live software education training for city employees. 2024 Goals •Continual improvement of cyber security strategy through joint exercises with state and federal agencies. •Build upon online services to include enhanced 311 Services. •Increase efficiencies through department system consolidation and cloud integrations as well as staff training to reduce IT budgets. •City-wide software education training programs utilizing virtual and live classes. 23 Information Technology •Funding changes/increases Consolidation and increases in Data Processing (Licensing) Fund Hardware replacement for EOL endpoints, switches, and network devices Training and support of city security awareness Cyber Security Risk initiatives - 200,000.00 400,000.00 600,000.00 800,000.00 1,000,000.00 1,200,000.00 1,400,000.00 1,600,000.00 1,800,000.00 2,000,000.00 2021 2022 2023 2024 2025 Information Technology Fund Revenues Expenses 24 Discussion & Direction to Staff