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09-12-2022 Conf. Mtg. COUNCIL CONFERENCE MEETING September 12, 2022 5:30 PM Fridley Civic Center -7071 University Avenue N.E. AGENDA 1.2023 Proposed Budget Discussion 2.Moore Lake Park Update 3.CBD and THC Sales in the City of Fridley The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, program, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will Hearing impaired persons who need any interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at (763) 572-3500. (TTD/763-572-3534). 2 Jufn!2/ AGENDA REPORT Meeting Date:September 12, 2022 Meeting Type:City Council Conference Meeting Submitted By:Joe Starks, Director of Finance/City Treasurer Title 2023 Proposed Budget Discussion Background Another discussion will be had regarding the 2023 Proposed Budget as the City moves toward approval of the 2023 HRA Levy, 2023 Preliminary City Levy and 2023 Proposed General Fund Budget at the 9/26 Regular Council Meeting. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources 2023 Proposed Budget PDF Presentation 2023 Proposed Budget Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Jufn!2/ 2023 Proposed Budget Volume No.1 61 Jufn!2/ Proposed2023 Budget City of Fridley, Minnesota Prepared for the Fridley City Council on September 22, 2022 62 Jufn!2/ This page intentionally left blank. 2 63 Jufn!2/ TABLE OF CONTENTS TABLE OF CONTENTS.................................................................................................................................................... 3 BUDGET ORGANIZATION............................................................................................................................................. 7 Budget Structure.........................................................................................................................................................7 BUDGET AUTHORITY..................................................................................................................................................... 8 Elected Officials...........................................................................................................................................................8 Appointed Officials....................................................................................................................................................8 Department Directors...............................................................................................................................................8 INTRODUCTION AND BUDGET SUMMARY.......................................................................................................10 Introduction...............................................................................................................................................................11 Vision Statement and Organizational Values................................................................................................11 Focus of Fridley........................................................................................................................................................11 Budget Goals and Objectives..............................................................................................................................12 Budget Challenges and Issues, Short–Term..................................................................................................12 Inflationary Pressures.............................................................................................................................................12 American Rescue Plan Act (ARPA).....................................................................................................................12 Park System Improvement Plan.........................................................................................................................13 Budget Challenges and Issues, Long–Term...................................................................................................14 Park System Improvement Plan.........................................................................................................................14 Budget–at–a–Glance...............................................................................................................................................16 ORGANIZATION AND BUDGET OVERVIEW.......................................................................................................21 Brief History of the City of Fridley.....................................................................................................................22 Land Use and Development History.................................................................................................................22 Demographic and Economic Trends................................................................................................................23 Organizational Governance and Structure.....................................................................................................26 Financial Policies and Procedures.....................................................................................................................31 Budget Assumptions and Considerations......................................................................................................36 Property Tax...............................................................................................................................................................37 Debt Service...............................................................................................................................................................40 GENERAL FUND............................................................................................................................................................43 General Fund Summary.........................................................................................................................................44 Department: City Management Summary....................................................................................................48 3 64 Jufn!2/ Division: City Management (City Manager’s Office) (121) ...................................................................... 52 Division: Employee Resources (126)................................................................................................................ 54 Division: Communications and Engagement (127) ................................................................................... 55 Division: City Clerk/Records Management (City Clerk’s Office) (128) ................................................ 56 Division: Elections (129) ....................................................................................................................................... 57 Division: Non–Departmental (141) .................................................................................................................. 58 Division: Emergency Reserves (142) ................................................................................................................ 59 Department: Finance Summary......................................................................................................................... 60 Division: Accounting (131) .................................................................................................................................. 63 Division: Assessing (City Assessor’s Office) (132) ....................................................................................... 64 Division: Information Technology (133)......................................................................................................... 65 Department: Public Safety Summary .............................................................................................................. 66 Division: Police (211) ............................................................................................................................................. 69 Division: Emergency Management (215)....................................................................................................... 70 Division: Fire (219).................................................................................................................................................. 71 Department: Public Works Summary.............................................................................................................. 72 Division: Facilities Management (311) ............................................................................................................ 75 Division: Engineering (314) ................................................................................................................................. 76 Division: Forestry (315) ......................................................................................................................................... 77 Division: Park Maintenance (316) ..................................................................................................................... 78 Division: Street Lighting (317) ........................................................................................................................... 79 Division: Street Maintenance (318).................................................................................................................. 80 Division: Fleet Services (319) .............................................................................................................................. 81 Department: Parks and Recreation .................................................................................................................. 82 Division: Parks and Recreation (410)............................................................................................................... 84 Department: Community Development ........................................................................................................ 85 Division: Building Inspections (511) ................................................................................................................ 88 Division: Planning (512) ....................................................................................................................................... 89 Division: Rental Inspections (514) .................................................................................................................... 90 SPECIAL REVENUE FUNDS ........................................................................................................................................ 91 Summary ..................................................................................................................................................................... 92 Fund: Cable Television (225) .............................................................................................................................. 93 Fund: Solid Waste Abatement (237) ............................................................................................................... 94 4 65 Jufn!2/ Fund: Police Activity (260) ................................................................................................................................... 95 Fund: Springbrook Nature (270)....................................................................................................................... 96 CAPITAL PROJECT FUNDS......................................................................................................................................... 97 Summary ..................................................................................................................................................................... 98 Fund: Building Capital Projects (405) .............................................................................................................. 99 Fund: Streets Capital Projects (406).............................................................................................................. 100 Fund: Parks Capital Projects (407)................................................................................................................. 101 Fund: Information Technology Capital Projects (409) ........................................................................... 102 Fund: Equipment Capital Projects Fund (410) .......................................................................................... 103 ENTERPRISE FUNDS ..................................................................................................................................................104 Summary .................................................................................................................................................................. 105 Fund: Water Utility Fund................................................................................................................................... 106 Fund: Sanitary Sewer Utility Fund ................................................................................................................. 109 Fund: Storm Water Utility Fund ..................................................................................................................... 112 Fund: Municipal Liquor ..................................................................................................................................... 115 GLOSSARY.....................................................................................................................................................................120 5 66 Jufn!2/ This page intentionally left blank. 6 67 Jufn!2/ BUDGET ORGANIZATION Budget Structure The Proposed 2023Budget for the City contains the following volumesand supplemental budget documents and/or appendices. Figure No.1: Budget Structure and Volumes Volume TitleDescription No. IBudget Overview and A summary of the overall budget containing a brief history Summaryof the organization, demographic and economic trends, organizational structure, budget summaries, major budget assumptions and factors, and analysis and discussion of budget decisionsalong with a review of fund balances and debt service. The summary also includes discussion of common budget terms and information about any underlying assumption as appendices, if needed. IIBudget Detail and A detailed reviewof all budgetedrevenues and expenditures, Financial Reportsincluding personnel, materials and supplies. The volume represents the adopted budget for the purposes of budget authority and compliance. IIICapital Investment A summary and detailed review of the various capital Program (CIP) budgets and funds of the City including individual project analysis, debt serviceand other considerations. Thisvolume represents the adopted budget for the purposes of budget authority and compliance for all capital project funds. Due to its length, the City compiles the Final2023–2027 CIP as a separate document. OtherFinancial Each volume and/or section of this budget isadopted in Management Policiescompliance with the various financial management polices as adopted by the City Council. For more information on these polices, please contact the Finance Department. 7 68 Jufn!2/ BUDGET AUTHORITY The FinalBudget for the City of Fridley, Minnesota (City, Fridley) for the Fiscal Year beginning January 1, 2023 and ending December 31, 2023. Pursuant to Section 7.04 and 7.05, and other applicable chapters or sections of the City Charter, this document and its associated volumes and appendices shall be considered the estimates as prepared by the City Manager and the complete financial plan for the City for the ensuing fiscal year. This document contains the sums to be raised and from what sources, and the sums to be spent and for what purposes. For the purposes of compliance, these documents, assembled in three volumes, shall be the Proposed 2023Budget. With the support of the City Manager and other staff, the City Council reviewedthis budget on September 12, 2022. The City Council and other applicable officials involved in the development of this budget are listed below. Elected Officials 4 Year Terms Expiring December MayorScott J. Lund2024 Councilmember At–LargeDavid Ostwald2024 Councilmember, Ward No. 1ThomasTillberry2022 Councilmember, Ward No. 2StephenEggert2022 Councilmember, Ward No. 3Ann R. Bolkcom 2022 Appointed Officials City ManagerWalter T. Wysopal City Attorney, Civil AffairsSarah J. Sonsalla City Attorney, Criminal AffairsCity of Coon Rapids City ClerkMelissa M. Moore Department Directors Director of Community DevelopmentScott J. Hickok Director of Parks and RecreationMichael W. Maher Director of Employee ResourcesRebecca A. Hellegers Director of Finance and City TreasurerJoseph A. Starks Director of Public Safetyand Chief of PoliceBrian T. Weierke Director of Public Worksand City EngineerJames P. Kosluchar 8 69 6: Jufn!2/ 71 Jufn!2/ 72 Jufn!2/ enhanced their ideas and t changes in the ed We believe Fridley will be : a remarkable community. As part of this conduct another strategic planning exercise in and serve as direction for daily activities and may budget ganization that meets the expectations and needs of the ments, principally the Vision Statement, Organizational Values and 11 alues to guide the behaviors and culture of the organization. In all V These values are always at the center of any discussion abou rganizational In 2015, the City Council adopted the following Vision Statement to generally guide O . years. Using these discussions, the City Council eventually compiled a strategic plan, known n 2019, the City Council, through two strategic planning workshops, discuss several ation. Based on previous practices, the City Council n a series of guiding principles and docu Friendly, Responsive and Driven. thoughtful and fiscally responsible, annual budget. In order to guide and inform the development of the annual More specifically, i ies upo and Organizational Values . rel Neighborhoods and Places; City ns, programs and projects of the City. The City Council reaffirmed this Vision Statement in 2019 Community Identity and Relationship Building;Public Safety and Environmental Stewardship;Vibrant Financial Stability and Commercial Prosperity; andOrganizational Excellence. , which will have a similar impact on the budget development process. 3 he City of Fridley (City) seeks to provide its residents, businesses and their visitors with Introduction Tcommitment, the City Council and City Manager strive to provide an orcommunity through abudget, the the strategic plan, known as Focus on Fridley. Vision Statement the operatio a safe, vibrant, friendly and stable home for families and businesses. The City Council also established three primary things, the City shall be:budget. In fact, any major budget adjustment or request submitted by the City Manager identifies the Organizational Value(s)by the change. Focus of Fridley thoughts for the City over the next as Focus on Fridley. Along with several specific projects, the City Council identified five strategic goals or “focus areas” to guide other City initiatives and programs. In no particular order, these Focus Areas are: These Focus Areas provide guidance throughout the development of the expenditures of the organiz202 73 Jufn!2/ 3 ity oncerning scal policies. maintained and service levels. and utility rate payers. Under these general goals and – strong 12 2.50%, with further increases anticipated. The intention behind increasing the - further acknowledges that some of these issues may be beyond its exclusive control. h the Guiding Principles outlined above, the City Council continues its effort to provide Term ives to improve the financial awareness and literacy of both internal staff and external . – In 2022, the City received a second settlement of $1,520,444 in ARPA fund from the Federal . to use these funds towards significant, necessary, and critical utility infrastructure projects. By utilizing decade high inflation continues to have a profound impact on the City. The July 2022 inflation rate - ies upon a series of specific guidelines to inform the development of the annual budget: decade high of 9.1% to 8.5%. The Federal Reserve has aggressively increased the Federal Funds Rate from - Multi ducts or plans to conduct several community events to improve the understanding of the public with respect and ultimately the budget accountability and transparency throughout the budget process; t is seen primarily in fuel expenditures, as well as utility (gas, electric, etc.) expenditures. projects , To stabilize ongoing revenues and expenditures, and eliminate unanticipated variances;To maintain structural balance and appropriate fund balance levels;To increase To make greater use of existing City resources; andTo ensure a financially competitive organization while maintaining Budget Goals and Objectives Like other local governments, and consistent witexcellent public services at a fiscally responsible cost to the property taxobjectives, the City Council rel In addition to these activities, the City also strstakeholders. As such, the City conducts monthly internal meetings to review key financial data and changes in applicable fiAdditionally, the City conto City services and to provide an important avenue for the public to express their critiques, ideas and thoughts regarding Coperations Budget Challenges and Issues, Short Along with the goals and objectives, the City also actively acknowledges and seeks to address various challenges and issues cthe financial health of the organization. The CityHowever, the City Council works diligently to limit these and other risks for the City and its stakeholders. Inflationary Pressures.slowed slightly from a multi0.25% at the end of 2021 to a current target of 2.25Federal Funds Rate is to slow down the economy, thereby lowering inflation. The impact from inflationary pressures on the 202Proposed Budge American Rescue Plan Act (ARPA)Government. The City has planned the funds in this way, it benefits the community in multiple ways. It keeps the City’s aging utility infrastructure safe and 74 Jufn!2/ l s A l City of LG hereby tax base City Council. e officials. To S Real GDP from Budget appropriate 3 ional corporations. In fact, family housing. In fact, between 2016 a general slowing in U – and multi Budget, the Proposed 202 – 2 as measured by of the property tax base. As such, any downturn in the economy, deceleration 13 42% Conservative revenue projections are included in this proposal to align with a hrough the addition of single . sued $20.7 million in General Obligation Tax Abatement Bonds as a means for d. The project is estimated to span approximately 8 years. Debt service payments for In 2022, the City is imited to Local Government Aid (LGA), Municipal State Aid (MSA), Police State Aid and Fire State Aid. . The State of Minnesota (State) provides the City with various financial aids to defray the costs of certain activities . In addition to thoughtfully budgeting State funding sources, the City also actively monitors the statuses of the Budget assumes a period of general economic City and its operations from this volatility, the City Council established policy of limiting General Fund revenues to more and Grants, commercial and industrial uses account for almost 1 utility rates stable for the community by reducing the need for debt issuances to fund utility infrastructure improvements, t keeps saving interest that otherwise would have been paid if debt was issued. Park System Improvement Plan financing a majority of the $30 mil. Park System Improvement Plan (PSIP), with the remaining amount being funded from internafunds, specifically the Community Investment Funthe bonds will need to be levied for beginning in 2023 and repaid over 15 years. There will be a significant amount of capitaexpenditures in the Parks Capital Fund beginning in 2023 and continuing for the next several years as the PSIP progresses. State Aids and programs, including, but not lThese various funding sources tend to fluctuate based on the financial health of the State and political will of elected Statprotect thethan 10% from State aid and similar sources. In the past several years, the City Council also reallocated more than $682,000from the operating budget to the Capital Project Funds. Similar to the Adopted 202approximately 10% of these funding sources, including about 3% from LGA, to the General Fund, satisfying the policy of the Economic Health.local, regional, national and international economies. The City remains home to several national and internatas of 202particularly the manufacturing sector, will have an impact on the City. The City continues efforts to diversify its propertythrough several redevelopment efforts, mostly notably tand 2022, the City added approximately 1,046 units of housing. The Proposed 20235.7 in 2021, to a forecasted 2.2 in 2022 and 1.4 in 2023general slowing of the economy. 75 Jufn!2/ re ed SIP wide – y personnel making on a – the City review There will be a significant , with the remaining amount being a benchmark market analysis and term issues and/or goals against the – (PSIP), such as the formation of a continuous s included Budget successfully balanced these needs and Additionally, in 2021 and 2022, or longer – The project is estimated to span approximately 8 years. er work diligently to make the City an excellent place to Proposed 2023 nsultant. The review 14 Park System Improvement Plan n 2022, the City issued $20.7 million in General Obligation Tax Abatement Council will use the results of the survey to inform their decision living of area municipalities to ensure a strong return on investment for residents – City of – Term – continues to explore various strategies and program Like any local government or private business, the City strives to maintain its competitiveness with As mentioned above, i . a new Fridley Civic Campus, which opened in 2018, to provide the organization with facilities to respond onsideration, the City must also weigh several long the City to either address or move toward addressing these challenges. term c –As the population of the City continues to increase and become more diverse, the City will experience new and place greater stress on City infrastructure. Understanding these dynamics will be key for ensuring the appropriate ed resident thoughts and ratings on various City activities and services. It also surveyed their specific opinions about riety of topics. Budget Challenges and Issues, Long Apart from these shortimmediate needs of the organization and/or community. Generally, the provided an opportunity for Park System Improvement Plan Bonds as a means for financing a majority of the $30 mil.funded from internal City funds, specifically the Community Investment Fund. Debt service payments for the bonds will need to be levied for beginning in 2023 and repaid over 15 years. amount of capital expenditures in the Parks Capital Fund beginning in 2023 and continuing for the next several years as the Pprogresses. Demands for Service.greater demands for programs and services. For example, an increasing population will result in a need for more public safetand equipment, and use of City resources. To address this challenge, the Cityimprovement effort, known as the Process Management Team, to eliminate waste and improve the efficiency of City services. Mospecifically, the City constructed to the increasing demand for City services. Lastly, the organization recently conducted a statistically significant, communitysurvey, which pollthe pending Park System Improvement Plan. Theva Organizational Competitiveness.surrounding communities within a variety of areas, such as local amenities, quality of services, property tax rates and public utility rates. The City regularly reviews the activities and costsand businesses. In addition to these efforts, the City Council and City Managwork with competitive pay and benefits to both attract and retain a talented workforce. the Compensation Plan with the assistance of an external co 76 Jufn!2/ through the thoughtful reallocation of existing financial resources. 15 The remainder of this page intentionally left blank. both competitive wages and property taxes Compensation Plan design adjustments. The plan was implemented in 2022 with 2022 budget authority. The City will continue to be thoughtful in supporting 77 Jufn!2/ 78 Jufn!2/ 79 Jufn!2/ , in the current Budget, totaling and al funds evenues he use of expenses in expenses n increase s 2020 of years, often expenses ; and 2) proprietary s and Proposed 2023 . The change , respectively. In total, the 2 planned capital projects and – 21,598,600 and expenditures totaling about expenditures of all budgeted revenues and % compared to 202 34,712,000 39.2 City maintains four such funds to support three s totaling about $ and . These changes may be attributed to a % supported operations. For the – in expenses, revenue tax outlines government fund activities between 38.4% 4.4 ely At present, the s and of pared to 2022 two primary sets of funds: 1) governmental fund 18 s of all budgeted revenues and % , com nterprise fund use of fund balance in governmental funds. Generally, the use of fund increase .8 E an 60on the next page and 889,900 . These uses of fund balance are the result of long % and respectively he City maintain T %, 61.6 . The table tes a $ funds comprise approximat 27.4 in revenues Budget authorizes 2023 % of $446,600 in 3.7 % and use of $350,000 in fund balance to offset the initial impact of the GO Tax Abatement Bonds for the of Enterprise 36.9 increase in revenue may be attributed to the recommended changes in public utility rates. Revenue and Capital Projects Funds. Proposed 2023 The Budget, n increase crease of inand capital outlay , or a Budget authorizes governmental fund revenues totaling about $n 2027 Capital Investment Program (CIP). The City typically plans for these capital projects over a series – , or a . Streets Capital Project Fund ,900 Proposed 2023 22,723,900 35,251 Generally, these uses of fund balance support capital projects supported by the capital project and enterprise funds as outlined in the Proposed 2023accruing fund balances specifically to support their extraordinary costs. The City may also support these projects through tdebt or interfund loans. Simply put, the City planned to use its “savings” for these needs. The table on the previous page outlines the various funding sources and expenditure areas for all budgeted funds between 2020 and the current budget year. Governmental Funds and Enterprise Funds.funds. Governmental funds account for typical government programgovernmental funds comprise approximately Proposed 2023$personnel servicescurrent year In total, the Proposed 2023 Budget anticipabalance may be attributed to the PSIP and consistent with previous City practices regarding the financing of capital projects. It is important to note that governmentinclude the General, Special Per the Government Accounting Standard Board, enterprises funds “are employed to report on activities financed primarily by rgenerated by the activities themselves, such as a municipal utility.” public utilities and the municipal liquor enterprise. The table on the next page summarizes these funds between 2020 and theyear. For the respectively. In total, the about $are the result of an increase in utility expenses related to the MCES charges for the Sanitary Sewer Utility Fund, which increase 8.45% or $406,000 from 2022. 7: Jufn!2/ 81 Jufn!2/ 82 Jufn!2/ 83 Jufn!2/ 84 Jufn!2/ 85 Jufn!2/ . * %%%%%%%%%%%%%%%%% 8% 6.6.66.74.26.79.18.87.64.75.56.27.44.64.63.73.12.21.5 2019 29,590 5.8%6.3%7.2%7.4%7.1%6.1%4.9%8.2%7.5%7.9%6.8%5.5%5.3%4.7%3.4%2.4%2.2%1.2% 2010 27,208 the median household and their associated jobs : Total Population by Age Group 5 %, which compared negatively years 9.6 2020 Census Data Age Range to 74 years Figure No. Under 5 years5 to 9 years10 to 14 years15 to 19 years20 to 24 25 to 29 years30 to 34 years35 to 39 years40 to 44 years45 to 49 years50 to 54 years55 to 59 years60 to 64 years65 to 69 years70 75 to 79 years80 to 84 years85 years and over Total Population Source: * , which remains below % 9 % in16 Figure 69 in 201 , while about * 35 % e future.63,800 %% $ 1.6%5.6%3.83.9a poverty rate of approximately 2019 68.816.3% 29,590 . 24 about %) of , compared to about 13.4 (the latest year of Census data 2.4%5.4%0.0%3.0% 2010 ( 81.9%12.4% outlines the age ranges of the 27,208 5 also maintains 2019 , the Median Age for the City decreased anticipates the age of the population to 3.4%0,8%3.0%1.2%2.9% 2000 88.7% 27,449 . As of 2019 As such, the average age of the population growing racial group was those identifying as community est and racially diverse. In fact, as of the 2000 Census, : Total Population by Race 6 median household income a Alaska Native ed hosts a disproportionate number of commercial and manufacturing industries / ethnicallyand State. The % of the population remains below the age Between 2017 and increasing from 3.4% of the population in 2000 to just over 50 . years, respectively. Figure No. 4 60 , but positively with the national trend , about 5.9%) Race WhiteBlack or African AmericanAmerican IndianAsianSome Other RaceTwo or More Races Total Population Generally, the City hile the population of the City continues to decrease in average age, it also The City anticipates these trends to continue for the foreseeabl African American for both the County W. above the age County ( Along with this projected increase, the City provides a breakdown of the total population by race. . In that same time period, the fast is 6 % 2019 Age.decrease on average in the immediate futurereadily available)20from 36.9 years to 35.remains below the average for the State. Figure No. community. Race. continues to become more nearly 89% of the population identified as white or Caucasian2019Black orin No. Income. As a result, the City maintainincometo the 86 Jufn!2/ 87 Jufn!2/ e d does for each it operates. of the budget; 44 , 202 City staff and various It shall have complete of of 15 members and meets the City Charter and makes ouncil. body, including a Mayor and End of Term December 31, 202December 31December 31, 2022December 31, 2022December 31, 2022 consists 0, the City operates as a charter or 1 Pursuant to City Charter § 2.01.2, “All . partisan – , non 21 mber me – Start of Term , among other areas January 1, 20January 1, 2021January 1, 2019January 1, 2019January 1, 2019 time. The Charter Commission – to 26 officials of the City and their respective offices and terms. – The Charter Commission regularly reviews : Mayor and City Council 8 the City Council as a five City Manager form of local government. Bolkcom – s Name Scott Lund es the elected Ann z David Ostwald Stephen Eggert Thomas Tillberry Figure No. summari shall exercise this control exclusively through the City Manager and shall not itself attempt to a City Council 8 also establishe s It s as may be required from time Large – Position administration but year. Pursuant to Article XII of the Minnesota Constitution and Minnesota Statute § 4The City Charter create ith these actors, the budget and policy development process also include the advice and insight per municipality and may exercise any powers and authorities established by the City Charter, assuming the same do not . . MayorCouncilmember, AtCouncilmember, Ward No. 1Councilmember, Ward No. 2Councilmember, Ward No. 3 to the City Charter from a Charter Commission. Charter nflict with State or Federal law. As such, the City Charter defines the structure of the City, and the framework under which Organizational Governance and Structure Generally, the budget and/or policy development process involves the City Council, City Manager and the respective Advisory Commission, if applicable. The City Charter and Fridley City Code (City Code) outlines the expectations and responsibilitiesparty. Along wexternal stakeholders, such as local civic organizations and interested government agencies (i.e., County, State). City “home rule” coThe City Charter addresses the structure of the City Council; the powers and duties of the City Manager; developmentthe authority to establish taxes and fees; and the operation of public utilities Consistent with the abovementioned constitutional provisions and State law, the City Council also receives advice and guidancpertaining recommendations for amendmentat least once City Council discretionary powers of the City, both legislative and executive, shall vest in and be exercised by the City Ccontrol over the City perform any administrative duties.” four Councilmembers. The Mayor serves as the presiding officer of the City Council, may vote as a full member of the body annot enjoy any veto powers. Figure No. 88 Jufn!2/ . , ity 21 20 similar as Governor Housing and of the December 31, . As of ive Officer of the City, shall be appointed or other action there is no designee for this. , which may be found on the next page. Each of the 9 2021 ger also serves as the Executive Director Large shall be elected in the same interval as the President of will capacity. The City Manager need not be a resident of the –– responsibilities and powers of the City Manager, including, but at – 27 December 6, as it may establish by ordinance As of . The City Charter also controls for vacancies in the City Council and committees year term /or – and their members serve without compensation, except for the reimbursement of eligible and . In 2013, the City Council appointed Walter T. Wysopal as City Manager. all City affairs through the various departments and divisions of the City; ) City Charter § 6.01, the City Manager serves at the Chief Administrat , also to a fourHRA over In addition to the advice and insight of the City Manager and other staff, the City Council also relies upon . for adoption any such actions or measures for the welfare of the City and its residents, including the City budget on a regular basis Pursuant to . anding, advisory commissions . To ensure the enforcement of all applicable laws, ordinances and resolutions of the City and City Council;To appoint and remove any and all City employees;To exercise controlTo prepare the annual budget and supervise all contracts and purchases of the City;To keep the City Council advised of the financial condition of the City; and To recommend mmissions meet Consistent with the City Charter, the Mayor and the Councilmemberthe United States of America to a term of four years. The other three Councilmembers shall be elected in the same intervalof the State of Minnesotacircumstances.City Manager by a simple majority of the City Council for an indefinite period in an atCity but must be a citizen of the United States of America. The City ManaRedevelopment Authority ( The City Charter, in a variety of chapters and sections, outlines various not limited to: Additionally, the City Manager may designate any other staff member to serve as City Manager in their absence, provided the CManager notifies the City Council of the same in writing. Advisory Commissions several stthe City Council maintains the Advisory Commissions as outlined in Figure No. coexpenses 89 Jufn!2/ s It to the s g of the bein – It provide the comprehensive City goals and policies. s for for related n, waste reduction and water resource on a broad range of environmental policie Description mmendations on amendments to the zoning ve businesses in blighted or underdeveloped areas of the the City Council It recommends actions to enhance the park and recreation 28 It also makes reco : Advisory Commissions 9 It also administers any Tax Increment Financing (TIF) Districts established in residents. The Planning Commission is responsible for community planning and development of comprehensive goals and policies, including but not limited land use, housing, public services, human services, and other related community activities. ordinance, special use permits, and subdivision requests. The EQEC advises and programs and the management of environmental resources. City Council with accurate information to assist in making and implementing sound environmental policy in such areas as solid waste abatement programming, environmental educatiomanagement. The Parks and Recreation Commission providedevelopment of park facilities and recreational activities for the wellCity opportunities in Fridley and provides direction The HRA implements housing rehabilitation programs and redevelopment projects that create new housing opportunities to meet local housing needs. also administers programs that are designed to enlarge the tax base, create jobs and create vital, attractiCity.the City. Figure No. Commission (EQEC) Year TermYear TermYear Term ––– Year Term – Seven MembersThreeSeven MembersThreeFive MembersThreeFive MembersFive Planning CommissionEnvironmental Quality and Energy CommissionParks and Recreation CommissionHousing and Redevelopment Authority 8: Jufn!2/ , time – to – ent unit for accounting and budget establish any budget authority, nor does it projects. However, it may from time /or the HRA. the HRA as a compon s budget and property tax levy independent of the City budget 29 separate . Therefore, this budget document does not The remainder of this page intentionally left blank. sharing arrangements between the City and – Due to its activities and significant financial resources, the City recognizepurposes. As such, the HRA Board of Commissioners adopts abut subject to the authority of the City Councilcontain additional financial information, for the HRA or its associated activities andaddress budget authority for cost 91 Jufn!2/ 30 . 10 Organizational Structure : 10 Figure No. Per the direction of the City Manager, and as ratified by the City Council as of September 26, 2019, the City . Organizational Structure maintains the organizational structure outlined in Figure No. 92 Jufn!2/ t, other nd in that the Manual is Since identifies those funds with budget 9 31 The City Charter also makes provisions for emergency appropriations, tion for the budget, the City Charter also establishes the protocol for the passage and y; ot have power to increase the amounts therein fixed in the budget resolution, whether by the Consistent with the City Charter § 7.04, the City Manager must prepare the annual budget estimates not included in this official budget document. For additional information regarding these and al receipts. The \[City\] Council may at any time, by resolution passed by a vote of at least four (4) members it is at the direction of the City Manager. It also identifies the internal structure of those funds. the City’s website or contact the Finance Department. visit Council, reduce the sums appropriated for any purpose by the budget resolution or authorize the transfer of sums from Insurance Fund Policy. – City\] Capital Investment Program Policy;Community Investment Fund PolicDebt Management Policy;Fund Balance Policy;Investment Policy;Operating Budget Policy;Public Purpose Expenditure Policy;Public Utilities Revenue and Remittance Policy;Revenue Policy; andSelf the \[ Financial Policies and Procedures Along with determining the manner of presentaenforcement of the budget. Most notably, City Charter § 7.07 stipulates the process for amending a duly adopted annual budgespecifically “the \[City\] Council shall ninsertion of new items or otherwise, beyond the estimated revenues, unless the actual receipts shall exceed such estimates, aevent, not beyond such actuof the unexpended balances of the budget to other purposes.” which may not exceed more than 10% of the total budget for those fund as identified by the City Manager. In additional to applicable City Charter, State and Federal regulations, the City maintains a series of ordinances, policies and procedures that guide and underpin the budget development process, including, but not limited to: In general, these policies and procedures are adopted as a single Financial Management Policy Manual (Manual). nearly 100 pages longs, policies, please Budgeted Funds and Structure.for all funds as identified by the City Manager as requiring annual budget estimates. Figure No. estimates as prepared 93 Jufn!2/ Liquor Municipal ment. requires the Storm Water Utility authorized by the City parative figures for the Sewer Utility Sanitary Enterprise Funds s as Proprietary Funds Water Utility - xpenses (expenditures); and capital outlay. brook Nature Center Spring departments and division Police Activity - Solid ment Waste Abate 32 Special Revenue Funds : Budgeted Fund Structure Cable TV 11 City of Fridley Capital Projects Equipment Figure No. Projects IT Capital Parks Capital Projects outlines the primary fund structure for the various Governmental Funds 2 Capital Project Funds Street Capital Projects Capital Projects Building City Charter § 7.04 also stipulates the structure of the budget estimates and their presentation, including comcurrent budget year and actual figures for the two preceding fiscal years by organizational unit. Additionally, the section budget estimates to be expressed in their major subdivisions: salaries and wages; ordinary eThe budget estimates included in each of the volumes that comprise this budget document, are designed to fulfill this requireAdditionally, Figure No. 1Council as of September 26, 2019. Fund General 94 Jufn!2/ Capital Primary Fund ForfeitureGeneralGeneralGeneralGeneralGeneralGeneralBuilding CapitalStreet Parks CapitalEquipment CapitalWater UtilitySanitary Sewer UtilityStorm Water UtilityGeneralGeneralGeneralIT Capital ProjectsGeneralGeneralWater UtilitySanitary Sewer UtilityStorm Water UtilityMunicipal Liquor Administration Forfeiture Maintenance Department/Division Police Public Works Department Facilities ManagementEngineeringStreet LightingPark Street MaintenanceFleet ServicesBuilding Capital ProjectsStreet Capital ProjectsParks Capital ProjectsEquipment Capital ProjectsWater Utility OperationsSanitary Sewer Utility OperationsStorm Water Utility Operations Finance Department AccountingAssessingInformation Technology (IT)IT Capital ProjectsElectionsCity ClerkWater Utility AdministrationSanitary Sewer Utility AdministrationStorm Water Utility Municipal Liquor 33 Primary Fund GeneralGeneralGeneralGeneralGeneralGeneralGeneralGeneralCable TelevisionGeneralGeneralSNCGeneralGeneralGeneralSolid Waste AbatementGeneralGeneralGeneralPolice Activity Department Departmental - Figure No. 12: Fund Structure by Department and DivisionDepartment/DivisionLegislative Department City Council City Management Department City ManagementLegalNonEmergency ReservesCommunications and EngagementElectionsCity ClerkCable Television Employee Resources Department Employee Resources Community Services Parks and RecreationSpringbrook Nature Center (SNC)Community Development Department Building InspectionsPlanningRental InspectionsSolid Waste Abatement Public Safety Department PoliceEmergency ManagementFirePolice Activity 95 Jufn!2/ ts, not s are end), – to pay unted for using ary fund type operating orded at the time the liabilities are other financing uses) in net current assets. , which is recognized when due. , d available). “Measurable” means the amount of the term debt – 34 term liabilities, associated with their activity are included on their balance sheets. – Governmental funds are budgeted and accounted for using a current financial resources other financing sources) and decreases (i.e., expenditures easurement focus, only current assets and current liabilities generally are included on the balance , Expenditures are generally recognized under the modified accrual basis of accounting when the related lude fees and miscellaneous revenues; such revenues are recorded only as received because they are not revenues With this m rred, except for principal and interest on general long Reported fund balance is considered a measure of “available spendable resources.” Governmental fund operating statements Basis of Accounting and Budgeting.measurement focus. sheet. represent increases (i.e., Proprietary funds are budgeted and accounted for on a flow of economic resources measurement focus. This means that all asseincluding fixed assets, and all liabilities, including longTheir reported fund equity is segregated into contributed capital and retained earnings components. Proprietstatements present increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. Proprietary funds are accothe accrual basis of accounting. Revenues are recognized when earned, and expenses are recincurred. Governmental and fiduciary funds are budgeted and accounted for using the modified accrual basis of accounting. Their revenuerecognized when susceptible to accrual (i.e., when they become measurable antransaction can be determined and “available” means collectible with the current period or soon enough thereafter to be used liabilities of the current period. Major revenues that are susceptible to accrual include property taxes (excluding delinquent taxes received over 60 days after yearspecial assessments, intergovernmental revenues, charges for services, and interest on investments. Major revenues that are susceptible to accrual incmeasurable until collected. fund liability is incu 96 Jufn!2/ 2027 CIP request forms - 35 Budget Development Process 3 202 : 2027 CIP and Revised 2022 Budget adopted by the City Council 13 - Figure No. To ensure appropriate analysis and review for the City Council and staff, the City adheres to the . Taxation and Proposed 2023 Budget Public Hearing conducted by the City Council - in - 2023 Annual Town Hall Meeting2023 Outlook and Objectives Workshop with the City CouncilReview the 2021 Audit and Comprehensive Annual Financial Report with the City CouncilPrepare Proposed 2023 Budget estimates and targets, and release Proposed 2023Proposed 2023 CIP Workshop with the City CouncilRelease 2023 Budget Instructions and Request Forms to DepartmentsInternal meetings with individual department to review and refine budget requestsInternal meetings with the City Manager to further review budget requestsProposed 2023 Utility Rates and Fees reviewed by the City CouncilProposed 2023 General Fund Budget and Property Tax Levy Workshop with the City CouncilProposed 2023 Property Tax Levy adopted by the City CouncilInternal meetings with the City Manager to further review budget requestsProposed 2023 Budget Workshop with City CouncilProposed 2023 Utility Rates and Fees reviewed and adopted by the City CouncilTruthProposed 2023 Budget, Proposed 2023 •••••••••••••••• July Oct.Dec. AprilMayJuneAug.Nov. Sept. Budget Development Process following budget development schedule. 97 Jufn!2/ , ns, venues , and the Manager. budgets for us of Fridley Plan Foc normally he City Council or City Generally, these revenue as of this date. he City n t ) Budget. rule, specific needs identified by the City Comments Selected e model tends to eliminate unanticipated general the 2040 Comprehensive Plan, . As a Proposed 2023 s regarding several factors or variables. Generally, ents based on Expenditures ( s, among other factors. Per current figures received from vendor.Based on League of MN Cities budget guide for 2023.Based on market conditions.Based on amount received from Met Council.For all City staff; per collective bargaining agreements. 36 %%% 6 . .0% 05.0 3 1125.08.45% Budget Assumptions, based on market conditions and information know Adjustment year rolling average with adjustm – property tax levy revenue Major – : outlines a few of the assumptions used to form the annual budget. 4 4 1 various plans, including, but not limited to, Figure No. 1 Figure No. and Considerations Utility Charge Category Insurance relies upon guidance from , on the next page, outlines the various revenue assumptions for the 5 dget Assumptions Health, Dental Workers Compensation InsuranceFuelMCES Sanitary Sewer Salaries and Wages Bu As part of the budget development process, the City makes a variety of assumptionthese assumptions and other considerations include estimates or projections about compensation adjustments, economic conditioinflationary pressures, insurance costs and non Per the direction of the City Council, the City relies upon a conservative budget modelslightly less than anticipated revenues and slightly more than anticipated expenditures. Thbudget variances and prevent budget “holes.” As such, the City makes limited modifications to external funding sources or reand alters anticipated expenditures using a threeCouncil and/or City Manager. Along with these assumptions, the annual budget remains consistent with the previous actions of the City Council and/or City Specifically, itStrategic Plan, Active Transportation Plan, Americans with Disabilities Act (ADA) Transition Plan, Pavement ManagementUniversity Avenue and Trunk Highway 65 Corridor Development Study. In addition to these plans and studies, tManager may execute agreements and/or contracts that also inform budget development, such as collective bargaining agreementsfringe benefit contracts, property leases and software maintenance agreements. Figure No. 1assumptions reflect adjustment to previous estimates 98 Jufn!2/ gn market l to ali county auditor nistrative estimated admi and eir respective )to th Comments Levy supports four separate budget areas: Selected redevelopment activity Tax Levy licenses and permits revenue for the Building a Property Revenues ( Property Tax Public Safety security services legal fines and restitution payments. /interfund chargebacksdecreases level of government with assistance from the Minnesota the –, Proposed, certified general fund portion of property tax levyPer trend and average Includes State aids and Federal grants.PrimarilychargesIncludes Primarily investment incomeTo offset impact of GO Tax Abatement Bonds for Park System 37 Assumptions, e the market value of every property within Fridley. The City opted for the county tax against any property begins with determining its t . For the City %% % %% arket under competitive circumstances. Per State law, the acceptable sales 03 03 3.03 7. Budget 4.5.49 - 271.66%74.65 $350,000 property Adjustment Major : 5 1 As such, the Proposed 2023 Budget Figure No. if it were sold in the open m as a local or City Assessor to determin s Category to align with recent trends, average redevelopment activity and a general slowing of the economy. es (proposed, certified general . Generally, the process for determining the ellaneous perty Tax Property Taxfund tax levy)Licenses and PermitsIntergovernmentalCharges for ServiceOther RevenuesMiscUse of Fund Balance The Proposed 2023 Budget assumes a period of general economic deceleration as measured by a general slowing in US Real GDP from 5.7 in 2021, to a forecasted 2.2 in 2022 and 1.4 in 2023. Conservative revenue projections are included in this proposawith a general slowing of the economy. Inspection Division Pro In Minnesota, property tax administration typically occurs aDepartment of Revenue. Although most counties provide property assessment services for their respective municipalities and townships, the City providethis model due to its considerable commercial/industrial property tax base. Per Minnesota Statute § 275.065, all home rule and statutory cities must certify on or before five working days after December 20 in each year1) General Fund; 2) Information Technology (IT) Capital Equipment Fund; 3) Springbrook Nature Center (SNC) Fund; and 4) various debt service funds Process.value or the value of property ratio of purchase price to assessed value must be 90% to 105%. 99 Jufn!2/ alue may be between assessed e Property Disparities ates, which R tax against the ass Cl estimated the City determines . exclusions for property tax a property By multiplying th ate to the ate for commercial/industrial R R . Unlike other municipalities, the lass lass Cvaluation C Fridley such as places of worship or institutions , all property within the community . Applying the certain shifts in the economy % , certain uses divided by the Net Tax Capacity. , county must determine the Property Tax Rate, or the Property market value property tax referenda, /or 38 for describes the Net Tax Capacity for Additionally, State law also permits certain . against each type of property. For example, the as a fixed amount of money county metropolitan area concerning commercial/industrial properties. The Fiscal , on the next page, assessed or market value, the City and/or county determine the actual property tax payable by – Pursuant to Minnesota Statute § 272.02 6 . , making the City somewhat more sensitive to assessable particular property, the City and tax a estimated Figure No. 1 property property taxation, the State also allows may be exempt from property taxes , subject to commercial/industrial market value of a property based on a rate established by State law or a local referendum. In Fridley, In addition to these property tax calculations, the City remains subject to the Fiscal Disparities Program, or a property tax After performing the various property tax calculations, the City may determine its Net Tax Capacity and other pertinent the amount of property tax Along with assessed or market value, each parcel receives a property class. These property classes correspond to affectproperties is 2.0%, whereas the class rate for residential homestead property is 1.0or market value determines the tax capacity of the individual parcel, and the aggregate of referred to as the Net Tax Capacity. To calculate the property tax for Tax Levy as determined by the City CouncilTax Rate by Class Rate by thea given parcelof public charitypurposes, most notably for residential homesteads. Along with this form ofassessed or the property tax levy for the Springbrook Nature Center in this manner. Therefore, in order to determine the property taxes payable inany given year for a parcel, the City and/or county needs to perform both calculations based on net tax capacity and market vreferenda.base sharing program among the sevenProgram is quite complex and beyond the scope of this budget document. Analysis.property tax information.property tax base for the City is disproportionately commercial/industrial. In Minnesota, the average municipality would be 30% and 35% 9: Jufn!2/ :1 Jufn!2/ :2 Jufn!2/ – , the City 2 ts related to market value 202 – called statutory to- – 38 203120422035202620 Maturity 2022 ,000 , the City currently maintains a total debt 5,000 0 ,7 9,510,0003,205 3,015,000043,245,00020,730,000 79 $ , the per capita debt for the former is approximately 3,424,708,700 2020 of $ Outstanding Principal 2 in 202 9,590 2 41 and ratios are sustainable for the community. As of December 31, utstanding Debt Service, December 31, IncrementAbatement : O 18Type %. When excluding debt supported by utility revenues, the total debt amounts, in property taxes to service outstanding debt in 2023; the City does not plan to issue any 2.32 both ; Figure No. 5,163,572 cial obligations applicable to municipalities. While most of these regulations are too complex for this market value for property taxes payable in General Obligation, Utility RevenueGeneral Obligation, Capital ImprovementGeneral Obligation, Tax General Obligation, Tax IncrementGeneral Obligation, Tax Total for the latter %. Assuming an estimated population of 2,160 han three percent of the estimated market value of a municipality. Figure No. 19 addresses this limit as well as the 1.87 A 2 o Series 2016A2017A2019A2020A202 an Aa2, or the third highest, credit rating from Moody’s Investors Service, Inc. and about $ ns n total, the City will levy $ market value ratio of approximately – 2,690 debt. Idebt as part of the Proposed 2023 Budget. Figure No. 18 outlines the debt service profile for the City. Using this debt service andtoratio decreases t$maintai In Minnesota, several sections of State law, as well as various Federal regulations, control the issuance, repayment and limithese, and other types of finanbudget document, the City regularly monitors its debt limit as controlled by Minnesota State 475.53, which limits sodebt to not more tstatutory debt reserve established by administrative policy of the City Manager. :3 Jufn!2/ 3.0% 63,975,00038,766,261 18,766,261 424,708,700 102,741,261 $$$20,000,000 $ Value $ $3, n/a TotalTotal Action Multiply SubtotalSubtractSubtract December 31, 2022 42 : Statutory Debt Limit, as of 19 Criteria Figure No. Statutory Debt Limit Obligation Debt, Paid Solely from Property Estimated Market ValueEstimated Debt Limit (per Minnesota Statute § 475.53)Statutory Debt LimitGeneral Taxes Unused Statutory Debt Limit Statutory Debt Reserve Remaining :4 Jufn!2/ :5 Jufn!2/ :6 Jufn!2/ :7 Jufn!2/ :8 Jufn!2/ :9 Jufn!2/ - the ts oversight veness of those divisions by provided level position to reflect the organizational - 48 zed functional areas within the CMO. Management Summary City The City Management Department made significant progress on several of the goals and objectives outlined in the In collaboration with the City Clerk’s Office, successfully implemented a new agenda management software solution for City Council and Advisory Commission meetings. Additionally, the City Clerk’s Office assumed responsibility for the creation and distribution of the agenda packet for certain meeting. The General Management Department, also referred to generally as the City Manager’s Office, provide administrative Departmental; – o City Management (also known as the City Manager’s Office);Communications and Engagement;Employee Resources;Legal (City Attorney’s Office);NonElections;City Clerk; andEmergency Reserves.The City Council, upon the recommendation of the City Manager, authorized the reorganization of the City Management and Community Services Departments, which reassigned the Communication and Engagement Division and the Employee Resources Divisions to from the latter to the former. The reorganization will increase the effectigreater, direct access to the City Manager.The City Management Division: Department: City Manager: Walter Wysopal Description.and executive oversight for all City activities and projects. Specifically, the department includes the following divisions: For operational and leadership purposes, Employee Resources functions as a standalone department despite being located withinCity Manager’s Office (CMO). For strategic leadership purposes, it is served by a departmentwide responsibilities. It is structured as a division for budgetary purposes due to the amount of financial resources under iand control and is located within a grouping of similar si 2022 Update.Adopted 2022 Budget. :: Jufn!2/ gic g of the labor wide policies and - nues. 49 all videos, including testing the use of live captioning for City Council determined review Along with the trends, there are several other significant issues or priorities, including but not - ty for City licenses from the Public Safety Department. will: Hired an Administrative Intern to assist the City Clerk’s Office with the Fridley City Code (City Code) Recodification Project, an effort to essentially rewrite the entire City Code. The Project, which was formally authorized by the City Council will take at least three years to complete and have a significant impact on City operations.With leadership from the City Clerk’s Office, satisfied the requirement to redistrict the City’s wards and precincts successfully decreasing the number of precincts from 12 to 10.Implemented the use of closed captioning on meetings.Began work on gaining public feedback on the Moore Lake, Skyline, Ed Wilmes and Creek View park improvements as the implementation of the Park System Improvement Plan contiSuccessfully implemented the Compensation Plan Update in the Spring of 2022, which included reviewing and updating all position descriptions, updating compensation and position review policies, and continued monitorinmarket.Launched a new benefits enrollment platform for new/open enrollments and benefit changes for eligible staff. This updated platform enhances delivery of services and facilitates improved communication between the City and its benefit vendorsIn conjunction with staff from all departments, will work to create a uniform repository for Cityprocedures and create a policy guide that will brand the City’s written documents, ensure legal compliance, modernize policies and establish preDevelop a records and retention policy that will teach best practices and requirements related to data practices while completing a reorganization of Laserfiche to ensure better ease of access to records.Take over responsibili ooooooooo The Communications and Engagement Division:The Employee Resources Division:The City Management Division will be heavily involved in the City’s Recodification Project, most notably by providing significant staff support through the Assistant to the City Manager and Administrative Intern. The City Manager will also provide stratedirection and oversight for the Project.The City Clerk Division The Communications and Engagement Division will: 2023 Significant Issues and Priorities.limited to those mentioned below. 211 Jufn!2/ training and development, targeting quality - 50 being by prioritizing wellness initiatives, offering quality benefits, and - w of current webpages, creation of a new site map structure, increased life balance and well - althy work Prioritize the website redesign for FridleyMN.gov, FridleyPublicSafety.org, SpringbrookNatureCenter.org and FridleyLiquor.com, which includes the revieaccessibility and overall betterment of the website experience.Focus efforts on developing current staff by designing and delivering highnew and emerging leaders within the organization.Review and revise current employment policies and employee handbook, to ensure compliance, identify gaps, and provide a single repository for all staff access.Promote henurturing a culture that boosts morale and encourages employee engagement. oooo The Employee Resources Division will: 212 Jufn!2/ 213 Jufn!2/ 214 Jufn!2/ 215 Jufn!2/ 216 Jufn!2/ 217 Jufn!2/ 218 Jufn!2/ 219 Jufn!2/ 21: Jufn!2/ 221 Jufn!2/ on, which 19 pandemic. In addition to supervising the Municipal – 60 ers; and eviews. appraisal; - partment, the Finance Department provides advice, guidance and financial services for all other Governmental Accounting Standards Board (GASB) Standard No. 87 for lease accounting 2024 IT Plan. - Department made significant progress on several of the goals and objectives outlined in the Summary r detail in the Enterprise Fund section of this budget document. defined several industrial building types and accessory features which required updates to over 350 parcels; established the request for interior r -- Implemented the paperless accounts payable system;Began Implementing compliance; andContinued to coordinate the financial response of the City to the COVIDConducted the 2022 Local Board of Appeal and Equalization;Conducted 2022 quintile reReandReFinalized the Microsoft 365 migration;Assisted Community Development with Citizenserve expansion and plan review software;Completed data migration for redundant servUpdated the 2022 As an internal service de Accounting;Assessing;Information Technology;Accounting Division staff focused on a variety of priorities, including:Assessing Division staff focused on a variety of priorities, including:Information Technology (IT) staff focused on a variety of priorities, including: Department: Finance Director: Joe Starks Description.departments and divisions of the City. Additionally, the Department supervises the activities of the Municipal Liquor Divisimay be reviewed in greateLiquor Division, the department includes the following divisions: 2022 Update. The Finance Adopted 2022 Budget. 222 Jufn!2/ anges and PMT; 2022 Strategic Plan. Generally, the plan provided for – 61 2025 IT Plan and the efforts to be “paperless by 2025;” - appraisal and hold the 2023 Local Board of Appeal and Equalization; - Star application for sales and listing data of commercial/industrial and apartment properties; - owards replacing the special assessment database. Co tinue disaster planning efforts and IT protocol documentation; Plan for possible retirements;Monitor the use of funds provided by the American Rescue Plan Act (ARPA);Expand the performance measurement program in collaboration with the Develop an internal accountability/audit program;Consider changes to the customer service practices for utility billing; andSupport the various recommendations of the PMT and the performance measurement program.Install Complete the annual quintile reResolve any potential property tax petitions; and Work tImplement the 2023 IT Capital Investment Program as approved by the City Council;Support the vision established by the 2023ConImplement the recommendations of the Geographic Information System (GIS) assessment; andContinue efforts to enhance cybersecurity. The department also continued implementation of the 2020department congruence with the Focus on Fridley Strategic Plan and identified a series of operational chprojects for the department. It also created a Statement of Values to provide the department with greater cohesion.The Accounting Division will:The Assessing Division will:The IT Division will: ing but not limited to those mentioned below. 2023 Significant Issues and Priorities. Along with the trends, there are several other significant issues or priorities, includ 223 Jufn!2/ 224 Jufn!2/ 225 Jufn!2/ 226 Jufn!2/ 227 Jufn!2/ of the “fabric of this community”; all public safety and emergency response activities and s driven programs; - 66 with mission to be staffed with 40 POCs; (CSOs) ranks; may need more attention in 2023; nagement efforts with the assignment of certain duties to the Administrative Sergeant. Public Safety Department supervise Call (POC) Firefighters; - on - and ollowing divisions: The Public Safety Department made significant progress on several of the goals and objectives outlined in the Adopted Continues to build trust within the community by being a larger part Maintains a high level of equipment and training;Focus on and prioritize the retention of the department.Recruitment of PaidImplemented a Care Coordinator (POC) position; andContinued to build up emergency management capabilities.Stabilized Community Service Officer Started to move towards more crime analysis and dataStarted to discuss the need for a social worker/mental health provider to assist with certain calls for service; andImproved Emergency Ma Established in 2018, the . Police;Emergency Management;FireThe department continued to build upon the recent Public Safety Department consolidation through a series of teambuilding exercises held with management staff for both the Police and Fire Divisions. Additionally, the department:Fire Division staff focused on a variety of priorities, including:Police Division staff focused on a variety of priorities, including: Department: Public Safety Summary Director: Brian Weierke Description.programs for the City. In addition to the Police Activity Fund (outlined in another section of the budget as a Special Revenue Fund), the department includes the f 2022 Update.2022 Budget. 228 Jufn!2/ . ice re Worker’s role. 67 driven programs; – and evaluate staffing levels to maintain current service level expectations; Along with the trends, there are several other significant issues or priorities, including but not elow. ision will: Maintain a high level of equipment readiness and training;Work to retain department staff Continue efforts to hire the authorized 40 POC Firefighters and focus on succession planning for certain positions;Implement the Strategic Plan completed in 2022; andLaunch and build Community Health Alliance as part of the Community HealthcaMove towards more a crime analysis and dataContinue to provide stability in the CSO ranks; andConsider the need for a social worker/mental health provider to assist with certain calls for serv The department will continue efforts to build trust within the community by being a larger part of the “fabric of this community.” Additionally, it will:The Emergency Management Division will continue to expand emergency management capabilities and revise certain emergency management planning documents and strategies.The Fire DivThe Police Division will: 2023 Significant Issues and Priorities.limited to those mentioned b 229 Jufn!2/ 22: Jufn!2/ 231 Jufn!2/ 232 Jufn!2/ 233 Jufn!2/ . d safety sanitary surveys, focused on With the assistance of . System Improvement Plan Parks repair and restore various pavements throughout the City to 72 ivisions:Additionally, staff has been leading LED conversion to ensure utility activities . d development of the in the resurfacing d s schedule with the Emerald Ash Borer (EAB) Mitigation Plan with EAB spreading throughout tinue to coordinate minor maintenance of traffic signals with Anoka County and participate sion, the City also adjusted the hourly wages for seasonal positions, which helped address con epartment includes the following d he . T Management Division is developing a detailed preventative maintenance plan. Kosluchar The Public Works Department made significant progress on several of the goals and objectives outlined in the Adopted et Lighting; James Facilities Management;Engineering;StreParks Maintenance;Utilities;Street Maintenance; andFleet Services.The Facilities Engineering Division staff continued to manage a heavy workload, including delivery of the recently revised Streets Capital Investment Program. Street Lighting Division staff repairs and maintenance throughout the communityefficiency.The Forestry Division continues itthe community.The Park Maintenance Division the Employee Resources Divirecruitment challenges for the division.The Street Maintenance Division increased Update. Department: Public Works Summary Director: Description.The Public Works Department is responsible for engineering, design and maintenance of City streets, sidewalks, parks, water, and storm water utility systems, City Hall and City Garage, and maintenance of equipment. Technical support in the form ofdrafting, research and utility location is provided by Engineering for the development of improvements plans, construction anprograms for the City 2022 2022 Budget. 234 Jufn!2/ t le enance hedule for e community. Avenue and Osborne Road in addition th rk System Improvement Plan. umber of projects while working with various project opment of the Park System Improvement Plan. uit and retain seasonal employees and expand efforts to provide 73 City facilities. The division plans to continue work on the greenspace – Along with the trends, there are several other significant issues or priorities, including but not . Priorities round sidewalk and trail access, including for non – The Fleet Services Division implemented a new vehicle leasing program through Enterprise Fleet Services and acquired the firselectric vehicles for the City. Staff continues to work on optimizing the leasing process.The Facilities Management Division will continue to prepare and implement detailed preventative maintenance scCity facilities. It will also seek opportunities to further collaborate with other division to both provide facilities maintexpertise and reduce maintenance costs.The Engineering Division will continue to complete a greater than usual npartners, namely Anoka County and the Minnesota Department of Transportation, on their projects within the community. The division will also provide capital project support for efforts related to the PaThe Lighting Division plans to retrofit or abandon certain decorative street lighting on 57to its regular maintenance activities.The Park Maintenance Division must continue efforts to recryearat or near the Fridley Civic Campus and further aid in the develThe Street Maintenance Division will address pavement deterioration and assess needed budget authority in the Pavement Management Program. It will also develop a pavement management plan for certain trails in thThe Fleet Management Division plans to expand and optimize the vehicle leasing program. It will also focus on reducing vehicidling and begin consideration of a vehicle pooling program among various departments. Significant Issues and 2023 limited to those mentioned below. 235 Jufn!2/ 236 Jufn!2/ 237 Jufn!2/ 238 Jufn!2/ 239 Jufn!2/ 23: Jufn!2/ 241 Jufn!2/ 242 Jufn!2/ 243 Jufn!2/ . of the goals and objectives outlined in the round activities and events. In addition to supervising the - 82 Along with the trends, there are several other significant issues or priorities, including school programming that will span the school year. - ee increases for the Summer ROCKS programs and field trip programs to offset increases to staffing and . 19 pandemic has continued to impact several program areas including spring break trips, afterschool - The Parks and Recreation Department made significant progress on several Recreation engages the community in a variety of year Mike Maher Parks and Recreation.The COVIDprogramming (which will resume in the Fall of 2022) and instructional programmingProgram capacity has been limited somewhat due to staff turnover and vacancies.Much of the Parks and Recreation programming is offered at no cost to the community, such as summer concerts, the Rec and Roll Program, Environmental Fun Fair and Winterfest.The implementation of the Parks System Improvement Plan will have a budgetary impact on rental revenue as four parks (including Moore Lake Park) will likely be under construction in 2023, thereby limiting shelter rentals.Staff plans on restarting afterStaff is looking into ftransportation costs Department: Parks and Recreation Director: Description.Springbrook Nature Center (outlined in another section of the budget as a Special Revenue Fund), the department includes the following divisions: 2022 Update.Adopted 2022 Budget. 2023 Other Significant Issues and Priorities.but not limited to those mentioned below. 244 Jufn!2/ 83 245 Jufn!2/ 246 Jufn!2/ ax and wide lots. -year cycle. - foot - the Planning Commission , ivisions: d family homes). The department promotes – 2019, 2020 and 2021, 2022 has proven to be a th incorporating all building permit applications and 85 epartment includes the following d coordinates and plans for all the different real estate developments in the the be busy with licensing and inspecting all rental properties on a three Along with the trends, there are several other significant issues or priorities, including . The Community Development Department made significant progress on several of the goals and objectives outlined in The Community Development Department t Hickok ing; and uilding Inspections;lann BPRental Inspections.The Building Inspections Division has completed a major goal this year wiprocesses into Citizenserve. Inspectors are also able to review, comment and send plans through Citizenserve and Bluebeam, which has significantly reduced the need for paper files. With record years in more “typical” year in terms of permitting and revenue.The Planning Division has enjoyed success with the education process of code enforcement as noted by the by the reduction of nuisance abatements, which is the goal. Staff continues to work with residents and businesses to keep Fridley vibrant. The division also completed two code amendments that allows Accessory Dwelling Units and development on 40The Rental Inspections Division continues toWith the addition of the Axle Apartments and the full buildout of the Sherman Development, there is an increase of 400+ units.The Building Inspection Division will continue to respond to an increase demand for inspection and plan review services will continue to work on the proficiency of Citizenserve for staff and applications. In addition to serving as the primary staff liaison to the Housing and Redevelopment Authority (HRA) including: commercial; industrial; and residential (both single family and multi Department: Community Development Director: Scot Description.Citycommercial and industrial development to expand the job base with livable wage employment opportunities and to increase the tbase. and the Environmental Quality and Energy Commission, 2022 Update.the Adopted 2022 Budget. 2023 Other Significant Issues and Priorities but not limited to those mentioned below. 247 Jufn!2/ focus on redevelopment opportunities identified in the Citizenserve for land use application submittal and review will also 86 continues to identify additional training opportunities to further refine their inspection The Planning Division will continue efforts to expand the use of process with other divisions, most notably Building, Fire and Engineering. Additionally, the division will continue work on the recodification process with a focus on the zoning code and City’s Comprehensive Plan.The Rental Inspection Division practices and will be implementing the rental application, inspections and billing processes into Citizenserve. 248 Jufn!2/ 249 Jufn!2/ 24: Jufn!2/ 251 Jufn!2/ 252 Jufn!2/ 253 Jufn!2/ 254 Jufn!2/ 255 Jufn!2/ 256 Jufn!2/ 257 Jufn!2/ 258 Jufn!2/ 259 Jufn!2/ 25: Jufn!2/ to uchar repairs Director: James Kosl 99 Fund: Building Capital Projects (405)Department: Public Works The Building Capital Projects Fund accounts for funds accumulated for the acquisition, construction, improvement and/or majorof public buildings, including: the Fridley Civic Campus (i.e., City Hall, Police Station, Fire Station No. 1); the Public Works Building; and other municipal buildings that may not be otherwise supported by other Capital Project Funds. The City may also use the fundfinance the acquisition of real estate for the City and its component units. 261 Jufn!2/ assets within Director: James Kosluchar acquisition, construction, improvement and/or major repairs 100 b and gutter; bridges; sidewalks; streets; streetlights; traffic signals and signage; and trails. pital Projects (406) Fund: Streets Ca Department: Public Works The Street Capital Projects Fund accounts for funds accumulated for the of transportation infrastructure, including: curThe City may expend funds on such facilities under its jurisdiction or in partnership with an area agency controlling similarthe City. 262 Jufn!2/ of nt; r major repairs Director: James Kosluchar/Mike Maher 101 nd: Parks Capital Projects (407) Fu Department: Public Works/Community Services and Employee Resources The Parks Capital Projects Fund accounts for funds accumulated for the acquisition, construction, improvement and/oparks and open spaces maintained by the City, including: community and neighborhood parks; playground and recreation equipmerecreation facilities; trails located in and around park units; and related activities. 263 Jufn!2/ , Joe Starks improvement Director: expansion, level or major software; networking – acquisition, 102 IT resources and systems, including: computers; enterprise of nce fees. and/or major repairs Information Technology Capital Projects (409) Fund: Department: Finance The Information Technology (IT) Capital Projects Fund accounts for funds accumulated for the replacementequipment; servers; and other significant hardware. The IT Capital Projects Fund may not support ongoing IT costs or operations, such as licensing and maintena 264 Jufn!2/ hicles Joe Starks Director: 103 of larger or more expensive equipment, including: public works and public safety ve and/or major repairs , replacement Fund: Equipment Capital Projects Fund (410)Department: Finance The Equipment Capital Projects Fund, also known as the Capital Equipment Program (CEP) accounts for funds accumulated for theacquisitionand equipment; parks and landscaping equipment; and other major equipment needs as determined by the City Manager and City Council. 265 Jufn!2/ 266 Jufn!2/ 267 Jufn!2/ and ; 01. - drinking water to safe Director: James Kosluchar Also, the division anticipates the: . standby service historically. and Polyfluoroalkyl Substances (PFAS) investigation , which operate on – Per throughout the year, including s similar to the Adopted 2022 Budget ere are several other significant issues or priorities, including but not 106 ncrease in Water Utility Rates to support ordinary capital project repair of aging infrastructure. cle in conjunction with Street Rehabilitation Project ST2022 the continue with expenses Along with the trends, th . also maintains water pressure and fire hydrants used for fire suppression throughout the City. consider the future of Wells No. 1 and No. 13 fund Division will The Water Utility Fund provides for the treatment, distribution, and metering of . It will also 0 fund supports the cost of all debt service associated with capital improvements for the water utility. The Public Works Department made significant progress on several of the goals and objectives outlined in the Adopted Well updates and rebuilds for Wells 3 and 6 at the Commons Park Wellfield and Well 11 at the Locke Park WellfieldWater main replacement along Hartman Cir Water Operations Division completed various capital project oo The The Water Operations Division continues to train new utilities staff and will be working on PFAS investigation for Well 10.The Water Operationsan increased reliance on contracted services forThe Water Operations Division will also continue an investigation of for Well No. 1The Water Operations Division will work on funding for Locke Park WTP upgrade to address PFAS.Generally, the Proposed 2023 Budget assumes a 3% iexpenses, to maintain appropriate cash and fund balances and service interfund loans. Update.Significant Issues and Priorities nd: Water Utility Fund Fu Department: Public Works Areas of Responsibility.properties within the City. The Additionally, the 2022 2022 Budget. 2023 limited to those mentioned below. 268 Jufn!2/ 269 Jufn!2/ 26: Jufn!2/ . will Adopted division The . Director: James Kosluchar priorities, including but not wer Utility Rates to support ordinary capital project throughout the year, including the: s support for wastewater treatment in concert with the provides 109 anitary sources of inflow/infiltration continue to be a top priority s will focus on coordination for the upcoming street rehabilitation projects and the minor Along with the trends, there are several other significant issues or itary sewer main in Flanery Park and Hyde Park neighborhoods. , the Municipal Wastewater Charge (MWC) will increase approximately $406,000 or 8.45% to . Operations Division Operations Division The Sanitary Sewer Utility Fund provides for maintenance of trunk and collector sanitary sewer systems and l. Additionally, the fund supports the cost of all debt service associated with capital improvements for the utility Sewer The Public Works Department made significant progress on several of the goals and objectives outlined in the Installation of a generator at the St. Imier Lift Station in the South Innsbruck neighborhood; andLining of 3.8 miles of san oo The Sanitary Sewer Operations Division completed various capital projectThe Sanitary Sewer Operations Division is continuing to train new utilities staff.The Sanitaryrehabilitation of certain lift stations.For the Sanitary Sewer coordinate with Metropolitan Council Environmental Services (MCES) on Phase No. 1 of an Inflow and Infiltration StudyFor the Proposed 2023 Budgetabout $5,212,000. The Sanitary Sewer Rate will be adjusted to accommodate this cost increase.Generally, the Proposed 2023 Budget assumes a 3% increase in Sanitary Seexpenses, to maintain appropriate cash and fund balances and service debt as well as interfund loans. Update.Significant Issues and Priorities Fund: Sanitary Sewer Utility Fund Department: Public Works Areas of Responsibility.sanitary sewer lift stations maintained by the City. The fund also Metropolitan Counci 2022 2022 Budget. 2023 limited to those mentioned below. 271 Jufn!2/ 272 Jufn!2/ 273 Jufn!2/ se. dopted objectives as Director: James Kosluchar throughout the year, including the: and the completion of planned capital projects. s 112 efforts to implement the new Municipal Separate Storm Sewer System Additionally, the fund supports the cost of all debt service associated with . o operate at expense levels similar to the Adopted 2022 Budget. reek Terrace neighborhood with Rice Creek Watershed District and Anoka provides for maintenance of trunk and collector storm water systems maintained under Alden Way that conveys Stoneybrook Creek; ther agencies Utility Fund Creek Watershed assistance; and Along with the trends, there are several other significant issues or priorities, including but not . The Storm Water also establishes and maintains improvements and programs provided to meet storm water quality fund The Public Works Department made significant progress on several of the goals and objectives outlined in the ALining of a 54” diameter storm sewerConstruction of 5 rain gardens in the Rice CConservation District grants and assistance;Construction of a storm water quality structure to improve water quality discharging from a portion of the Logan Park neighborhood with CoonRemoval of sediment accumulated over decades in basins of the Danube Pond/Farr Lake drainage system. Storm Water Operations Division completed various capital project oooo lementing the new MS4 permit. The The Storm Water Operations Division will continue to train new utilities staff for storm water maintenance and will be impThe Storm Water Operations Division will continue tThe Storm Water Operations Division will also continue(MS4) permit requirements through modifications to certain operations Due to the number of future Storm Water Utility capital projects, the Proposed 2023 Budget includes a 10% increase in the Storm Water Utility rate annually through 2025, which will generate approximately $1,750,000 in additional user fees. With this revenue, the City may avoid the issuance of debt to support planned capital project and save about $310,000 in interest expen Update.Significant Issues and Priorities Fund: Storm Water Utility Fund Department: Public Works Areas of Responsibility.by the City. The established by the Metropolitan Council and ocapital improvements for the utility. 2022 2022 Budget. 2023 limited to those mentioned below. 274 Jufn!2/ 275 Jufn!2/ 276 Jufn!2/ . 2 d ty. lore ff as th the in excess Joe Starks and Coon Rapids Director: sues or priorities, including but not in Spring Lake Park s and the Equipment Capital Projects Fund. Generally, al of the goals and objectives outlined in the Adopted 202 sale liquor operation – 115 d strategies to improve the reputation of Fridley Liquor as a community g system. profit partner to provide employment opportunities for persons with disabilities; – profit organizations to assist in fundraising (e.g., Fridley Historical Society). – Along with the trends, there are several other significant is time positions. As such, the City plans to examine its hiring effort, retention strategies an – one for each store. – Established in 1949, the Municipal Liquor operation consists of two retail locations with annual sales 19 pandemic and otherwise strong demand for retail employees, Fridley Liquor continues to experience higher with a portion of the net profits benefiting the General Fund – , ing to give back about one percent of net profits to the community for social responsibility related programs; and The Finance Department made significant progress on severWorking with the State and a nonPlannPartnering with community non ooo illboards, community event participation, organizational fundraising, promotional items and social media marketing among Fridley Liquor continued to expand on its role in the community by:Fridley Liquor continued to refine and optimize the recently launched online ordering system and will make other modifications to layout of Store No. 1 to accommodate online orders.Fridley Liquor will need to maintain market share against new offAs mentioned above, the City plans to continue efforts anasset and a business that provide superior customer service and product selection. Additionally, Fridley Liquor plans to expa delivery service coupled with the new online orderinDue the COVIDthan average turnover in partcompensation related to the municipal liquor stores. Additionally, the City plans to adjust the wages for Fridley Liquor stapart of the first round of changes related to the pending compensation plan update.As part of the effort to further capitalize on the online ordering system and other strategic initiatives, Fridley Liquor, wiassistance of the Marketing and Engagement Division, continues to refine and implement its marketing plans, which includes bother efforts. Update.Significant Issues and Priorities. fund “pours its profits” back into the City and alleviates the property tax burden on businesses and residents of the communi 2 3 $6,000,000 annually Fund: Municipal Liquor Department: Finance Areas of Responsibility.ofthe The fund contains two divisions 202 Budget. 202 limited to those mentioned below. 277 Jufn!2/ 19 – pandemic level. - , pre 116 2020 and 2021 were largely historic years in terms of sales and the Proposed 2023 t assumes sales levels that are back to a more realistic Fridley Liquor will also need to determine the ultimate transience, if any, of the increase in sales related to the COVIDpandemic and the shift in consumer habits. Budge 278 Jufn!2/ 279 Jufn!2/ 27: Jufn!2/ 281 Jufn!2/ 282 Jufn!2/ e. revenues to finance or adopted nt, or renovation of land, structures Final n period and the 121 e criteria governing the timing of the recognition of transactions and events. expenditures for a give one year. or adopted Final A plan for capital expenditures to be incurred each year for a fixed period of years and the time cost for acquisition construction, improvement, replaceme term debt. Expenditures which result in the acquisition of or addition to fixed assets which have a value of $5,000 - - . Fund type used to account for financial resources that are restricted, committed, or assigned to expenditures Governmental fund type used to account for accumulations of resources that are restricted, committed, or The technical term that describes th re for principal and interest. Liabilities which are payable within The largely oneThose assets which are available or can be made readily available to finance current operations or to pay current or Expenditure A financial operations plan of An excess of expenditures over revenues, a loss in business operations. A written promise to pay a specified sum of money called principal at specified dates, including interest at a designated tim Outlay An obligation resulting from the borrowing of money or the purchase of goods or services. Basis of Accounting. Bonds.Bonds are typically used for long Budget.them. Capital Investment Program (CIP).estimated resources to finance the projected expenditures. Capital or more and have useful life of more than one year. Capital Project.and improvements thereon. Capital Project Fund.for capital outlays including the acquisition or construction of capital facilities and other capital assets. Current Assets.liabilities. Current Liabilities. Debt. Debt Service Fund.assigned to expenditu Deficit. 283 Jufn!2/ is n of ontributed to a tax harges. ch the City determines its financial ble for carrying out a major component of the business licenses, fines, and user c - divisions are responsi 122 Usually, ancing set of accounts in which assets, liabilities, and equity are recorded for a specific bal - month period to which the annual budget applies and at the end of whi Where accounts are kept on the modified accrual or accrual basis of accounting, the cost of goods received, – A revenue sharing program comprised of local government units within the Twin Cities Metropolitan area. Under term tangible assets which are “fixed” in nature, such as building, land, and equipment. Proprietary fund type used to report an activity for which a fee is charged to external users for goods or services.– Commitments related to unperformed (executor) contracts for goods or services. In accounting for depreciation, the cost of a fixed asset, less any salvage value is prorated over the estimated service Long The twelve A major organization unit within a department. An accounting entity with a self A general term used for any fixed charge levied by government associated with providing a service permitting an activity or vices rendered. of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset Depreciation.life ultimately charged off as an expense. Division.department. Encumbrance. Enterprise Fund. Expenditure/Expense.or ser Fee.imposing a fine or penalty. Major types of fees include business and non Fiscal Disparities.this program a portion of growth in commercial, industrial, and public utility property value of each community is cbase sharing pool. Each community receives a distribution of property value from the pool based on market value and populatioeach city. Fiscal Year.position. The City’s fiscal year is January 1st to December 31st. Fixed Asset. Fund.activity or objective. 284 Jufn!2/ ds, ions reimbursement setting body for - - . to provide housing and ally serves as the chief operating fund of a government. The HRA was formed by the City supported activities. There are five different types of governmental -123 The authoritative accounting and financial reporting standard Bonds that are backed by the full faith and credit of the City. tal assets. Revenues from other governments in the form of grants, entitlements or shared revenues. Proprietary fund type that may be used to report any activity that provides goods or services to other fun Funds generally used to account for tax lived capital assets that normally are stationary in nature and normally can be preserved for a significant greater - Net position of a governmental fund (difference between assets, liabilities, deferred outflow of resources, and deferred Long One of the five governmental fund types. The general fund typic o local governments from the state and federal governments. A contribution of assets (usually cash) by one governmental unit or other organization to another. Typically, these contribut A statement of direction, purpose, or intent that describes the future state of condition or result to achieve : the general fund, special revenue funds, debt service funds, capital project funds, and permanent funds. ows of resources). Fund Balance.infl Governmental Accounting Standards Board (GASB).state and local governments. General Fund.The general fund is used to account for all financial resources not accounted for in some other fund. General Obligation (GO) Bonds. Goal. Governmental Funds.funds Grant.are made t Housing and Redevelopment Authority (HRA) of the City of Fridley.redevelopment assistance to Richfield citizens and businesses. Infrastructure.number of years than most capi Intergovernmental Aid. Internal Service Fund.departments, or agencies of the primary government and its component units, or to other governments, on a costbasis. 285 Jufn!2/ y . financial tate of Minnesota and . ection 124 which recognizes increases and decreases in financial resources only to the extent ly, debt service payments and a number of specific accrued liabilities are only recognized as An aid program consisting of sales and income revenues collected by the S An aid program consisting of gas tax revenues collected by the State of Minnesota redistributed to local re are two types of proprietary funds: enterprise funds and internal service funds. The basis of accounting term inflows or outflows of cash. Revenues are recognized to the degree that they are available to finance - Funds that focus on the determination of operating income, changes in net position (or cost recovery), financial The value determined by the County Assessor for real estate or property used for levying taxes. The recommended city budget submitted by the city manager to the city council. Securities permitted by law are purchased and held for the production of income in the form of interest. An achievement that can be attained only if the attempts are made in a particular dir The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash or until a liabilit State Aid (MSA).temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result A group of activities, operations, or operational units directed to attain a specific purpose or objective. A Budget. oject. Investment. Liquidity.must be paid. Local Government Aid (LGA).redistributed to local governments to reduce local property tax burdens. Market Value. Modified Accrual Basis.that they reflect nearexpenditures of the fiscal period. Similarexpenditures when payment is due because it is only at that time that they normally are liquidated with expendable available resources. Municipal governments for road improvements. Objective. Program. PrFinal Proprietary Fund.position, and cash flows. The 286 Jufn!2/ tal improvement or service deemed to or part of the cost of a capi 125 all, current liabilities. term borrowing. - Financing secured by the anticipated incremental increase in tax revenues, resulting from the value). New tax capacity rates will be expressed as percentages. taxable portion of the market value which is based on classification rates determined by the type of property A fund established used to account for the proceeds of specific revenue sources that are legally restricted to A levy made against a property to defray The The old “mill rate” derived in same manner mill rates were determined. Tax capacity rate is equal to levy divided ount of property taxes levied to finance operations that are not funded by other services.The difference between current assets and old, assessed The am Funds set aside for unanticipated expenditures or unforeseen emergencies, as well as to have adequate working capital for Funds collected as income to offset operational expenses including property taxes, charges for service, licenses and permits, Compulsory charges levied by a government to finance services performed for the common benefit. x capacity ( Reserves.current operating needs to avoid short Revenue.etc. Special Assessment.benefit that property. Special Revenue Fund.expenditure for specified purposes. Tax Capacity Value.tax. Tax Capacity Rate. by ta Tax Increment Financing.redevelopment of an area. Tax Levy. Taxes. Working Capital. Jufn!3/ AGENDA REPORT Meeting Date:September 12, 2022 Meeting Type:City CouncilConference Meeting Submitted By:Mike Maher Title:Director,Parks and Recreation Moore Lake Park Update Background approved Park System Improvement Plan. Staff are working with WSB on the site plan and Oertel Architects on plans for a community building. The site plan and building are moving from concept and schematic design into the next step of design development. Community engagement is ongoing with a th large community event planned for Saturday, September 10. The event will provide opportunities for staff to connectwith residents on the site plan, building concept and to gather preferences and opinions on six different playground designs developed as options for the park. Financial Impact None Recommendation None Focus on Fridley Strategic Alignment X Vibrant Neighborhoods &Places X Community Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources Fridley Moore Lake Park 2022-0823 Moore Lake Park Playground Community Engagement Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 287 Jufn!3/ 288 Jufn!3/ 289 Jufn!3/ - 28: Jufn!3/ 291 lsb!Qflb!Mfspp!NzfmejsG`111.697131\]obm!Qsfutb!NefsfeofS\]tdjiqbsH\]111.697131\];L Jufn!4/ AGENDA REPORT Meeting Date:September 2, 2022 Meeting Type:City Council Conference Meeting Submitted By:Ryan George, Deputy Director -Police Title CBD and THC Sales in the City of Fridley Background Staff from the Public Safety Department will meet with the City Council to discuss CBD and THC sales in the City, and recent law changes the City may need to consider. Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 293