04-22-2024
Council Conference Meeting
April 22, 2024
5:30 PM
Fridley City Hall, 7071 University Avenue N.E.
Agenda
1.Critical Incident Mitigation, De-Escalation, and Rescue Vehicle Proposal
2.Finance Update March 2024 Year-to-Date
3.2025 Budget Outlook & Objectives
4.Islands of Peace Regional Park Discussion
Upon request, accommodation will be provided to allow individuals with disabilities to participate in
any City of Fridley services, programs, or activities. Hearing impaired persons who need an interpreter
or other persons who require auxiliary aids should contact the City at (763) 572-3450.
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AGENDA REPORT
Meeting Date:April 22, 2024 Meeting Type:City CouncilConference Meeting
Submitted By:Ryan George, Director of Public Safety
Title
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Background
The Fridley Public Safety Department is proposing purchasing an armored vehicle for the purpose of
enhancing public safety response capabilities and ensuring the protection of both officers and
citizens during critical incidents. The introduction of such avehicle will serve as a vital asset in our
mission to safeguard the community and effectively respond to high-risk situations such as mass
casualty incidents, active shooter incidents, or response to barricaded subjects.
s will allow it to navigate into hostile environments, facilitating the
rescue of individuals and ensuring the safety of law enforcement and EMS personnel. Additionally,
the vehicle can serve as a means of safe evacuation for citizens who are trapped in dangerous
situations.
Attacks on law enforcement personnel and innocent civilians are on the rise, and the use of rifles is
becoming more prevalent. Unfortunately, we have witnessed multiple recent events in Minnesota in
which first responders have been specifically targeted and shot with rifles. The risk of death and
serious injury to our first responders seems to be rising each day. Our goal is to provide our officers
with the tools they need to safely provide law enforcement services to our community in our
changing society.
Recommendation
Discuss vehicle purchase options and the possibility of a 2024 CIP amendment to place an order for
delivery in 2025.
Focus on Fridley Strategic Alignment
Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building
Financial Stability & Commercial Prosperity X Public Safety & Environmental Stewardship
Organizational Excellence
Attachments and Other Resources
VisionStatement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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AGENDA REPORT
Meeting Date:April 22, 2024 Meeting Type:City Council Conference Meeting
Submitted By:Joe Starks, Finance Director/City Treasurer
Title
Finance Update March2024Year-to-Date
Background
A year-to-date financial update will be provided.
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
March 2024YTD Financial Update
March 2024YTD Liquor Store Income Statement
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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For the fiscal period ending 3/31/2024
% of Year Remaining: 75%
Revenues 2024 Current Budget2024 YTD Actual2024 Balance% RemainingNote
General Fund$ 22,639,700$ 1,248,453 $ 21,391,24794%A
Cable TV Fund$ 322,600$ 2,625 $ 319,97599%B
Solid Waste Abatement$ 540,500$ 104,030 $ 436,47081%
Police Activity Fund$ 226,000$ 6,580 $ 219,42097%
SNC Fund$ 769,500$ 128,125 $ 641,37583%A
Water Utility Fund$ 5,176,700$ 320,820 $ 4,855,88094%C
Sewer Utility Fund$ 8,046,700$ 774,677 $ 7,272,02390%C
Storm Water Utility Fund$ 2,138,600$ 120,734 $ 2,017,86694%C
Liquor Fund$ 6,734,800$ 1,365,873 $ 5,368,92780%
TOTAL REVENUES$ 46,595,100$ 4,071,917$ 42,523,18391%
Expenditures 2024 Current Budget2024 YTD Actual2024 Balance% RemainingNote
General Fund$ 22,639,700$ 4,604,306 $ 18,035,39480%
Cable TV Fund$ 501,700$ 111,730 $ 389,97078%
Solid Waste Abatement$ 539,000$ 70,156 $ 468,84487%
Police Activity Fund$ 223,500$ 40,758 $ 182,74282%
SNC Fund$ 749,100$ 141,612 $ 607,48881%
Water Utility Fund$ 7,070,900$ 890,855 $ 6,180,04587%
Sewer Utility Fund$ 8,788,200$ 2,353,500 $ 6,434,70073%
Storm Water Utility Fund$ 2,855,500$ 305,717 $ 2,549,78389%
Liquor Fund$ 6,779,000$ 1,397,763$ 5,381,23779%
TOTAL EXPENDITURES$ 50,146,600$ 9,916,397$ 40,230,20380%
GENERAL FUND
GF Revenue Types 2024 Current Budget2024 YTD Actual2024 Balance% RemainingNote
Taxes$ 15,002,400$ -$ 15,002,400100%A
Special Assessments$ 60,000$ -$ 60,000100%A
Licenses and Permits$ 1,079,000$ 126,746$ 952,25488%D
Intergovernmental$ 2,591,200$ 257,151 $ 2,334,04990%E
Charges for Services$ 2,800,800$ 643,963$ 2,156,83777%
Fines and Forfeitures$ 132,500$ 29,276 $ 103,22478%
Miscellaneous$ 431,300$ 55,692$ 375,60887%F
Other Financing Sources$ 542,500$ 135,625 $ 406,87575%
TOTAL GF REVENUES$ 22,639,700$ 1,248,453 $ 21,391,24794%
GF Dept. Expenditures 2024 Current Budget2024 YTD Actual2024 Balance% RemainingNote
Legislative$ 212,500$ 37,087 $ 175,41383%
City Management$ 1,980,200$ 442,329 $ 1,537,87178%
Finance$ 1,918,000$ 386,794 $ 1,531,20680%
Public Safety$ 10,833,300$ 2,317,721 $ 8,515,57979%
Public Works$ 4,954,700$ 893,326 $ 4,061,37482%
Parks & Recreation$ 941,600$ 175,604 $ 765,99681%
Community Development$ 1,799,400$ 351,445 $ 1,447,95580%
TOTAL GF EXPENDITURES$ 22,639,700$ 4,604,306$ 18,035,39480%
Notes:
A - 1st half property tax settlement will be received in July, 2nd half in December and short settlement in January.
B - Cable franchise fee payments are received quarterly.
C - Timing of quarterly utility bills and receipt of corresponding payments.
D - See building permit trend below.
E - 1st installment of State Aid and Local Government Aid received in July, 2nd in December. Police aid and fire aid (pass through) received in October.
F - Investment income allocated at year-end, based on average cash balances, as part of year-end process.
Building Permit Activity
Year# of PermitsValuation
2022 YTD 321 $ 2,895,229
2023 YTD 562 $ 6,226,445
2024 YTD 504 $ 4,599,558
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Liquor Store #1 - Fridley MarketMarch 2024 YTD
Category202220232024
Sales 1,184,268 1,150,866 1,130,818
Cost of Sales 850,373 816,727 803,932
Gross Profit ($) 333,896 334,139 326,886
Gross Profit (%)28.19%29.03%28.91%
Operating Expenses 274,622 265,807 275,274
68,332 51,612
Income/Loss 59,274
Nonoperating Revenues 6,202 49,485 3,018
Nonoperating Expenses - - -
Net Profit/Loss65,476117,81754,630
Transfer 69,625 69,625 82,125
Liquor Store #2 - Hwy. 65March 2024 YTD
Category202220232024
Sales 244,551 238,573 232,037
Cost of Sales 189,401 180,893 177,945
Gross Profit ($) 55,150 57,680 54,093
Gross Profit (%)22.55%24.18%23.31%
Operating Expenses 60,122 42,853 43,487
Income/Loss (4,972) 14,827 10,606
Nonoperating Revenues - - -
Nonoperating Expenses - - -
Net Profit/Loss (4,972) 14,827 10,606
Transfer 15,000 15,000 15,000
Liquor Stores - CombinedMarch 2024 YTD
Category202220232024
Sales 1,428,820 1,389,439 1,362,855
Cost of Sales 1,039,773 997,620 981,877
Gross Profit ($) 389,046 391,819 380,979
Gross Profit (%)27.23%28.20%27.95%
Operating Expenses 334,745 308,660 318,761
Income/Loss 54,302 83,159 62,218
Nonoperating Revenues 6,202 49,485 3,018
Nonoperating Expenses - - -
Net Profit/Loss 60,504 132,644 65,236
Transfer 84,625 84,625 97,125
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AGENDA REPORT
Meeting Date:April 22, 2024 Meeting Type:City Council Conference Meeting
Submitted By:Joe Starks, Finance Director/City Treasurer
Title
2025Budget Outlook & Objectives
Background
Staff and Council will have their first discussion related to the 2025Budget. Items to be discussed
include the State and Federal outlook and projections, considerations and assumptions to be used for
the 2025Budget and any objectives and guidance the Council deems important as the budget is
formulated. Key dates in the 2025Budget process will also be highlighted.
Focus on Fridley Strategic Alignment
Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building
X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship
X Organizational Excellence
Attachments and Other Resources
Proposed 2025 Budget Outlook and Objectives
2025 Budget Calendar
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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OUTLOOK AND OBJECTIVES
2025 BUDGET
APRIL 22, 2024
OVERVIEW
•2023 General Fund Budget Performance & 2024 Budget
•Budget Planning Projections for 2025 Budget
•Long–Term Financial Plan
•Economic Expectations
•Impacts on 2025 Budget
•Property Tax Levy –Trend & Potential Levy Impacts for 2025
•Next Steps and Other Considerations, Objectives, Guidance
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GENERAL FUND
2023 BUDGETPERFORMANCE(U NAUDITED
ADOPTEDBUDGET
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GENERAL FUND, REVENUES
•For Fiscal Year 2023, actual revenues were over budget by approximately $410,607
•Includes $379,501 in unrealized gain on investments and does not include $1,292,504 one
Safety Aid.
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GENERAL FUND, EXPENDITURES
•For Fiscal Year 2023, actual expenditures were below budget by
approximately $334,869.
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LONG–TERM
FINANCIAL PLAN
2025 B UDGET
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LONG–TERM FINANCIAL PLAN
•Consistent with the Vision Statement and Organizational Values of
the City, the Planning 2025 Budget seeks to
services at a fiscally responsible cost
•Under this general goal, the City relies upon a series of guidelines to
inform the development of the annual budget:
•To stabilize ongoing revenues and expenditures, and eliminate
unanticipated variances
•To maintain structural balance and appropriate cash or fund balance levels
•To increase accountability and transparency throughout the budget process
•To make greater use of existing City resources
•To ensure a financially competitive organization with exceptional service
levels
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ECONOMIC EXPECTATIONS
•State Forecast
•The State’s projected budget surplus is currently $3.7 billion, down from
$17.5 billion at this time last year.
•One-time Public Safety Aid received by City in December 2023 $1,292,504
•Local Government Aid –2023 change to LGA program increased
appropriation in 2024. ($2,198,947 in 2024, $1,871,738 in 2023 = $327,209
increase for 2024)
•2024 Session Printout by House Research Department under current law shows $270
increase for City in 2025
•LGA is certified for 2025 around August 1, 2024
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ECONOMIC EXPECTATIONS
•Federal Forecast
•Current federal funds rate at range of 5.25% to 5.50%
•Has been unchanged since July 2023
o Federal Open Market Committee (FOMC) met in March and voted to
hold the federal funds rate unchanged
Wants to see more positive information that inflation is under control before
lowering rates
Inflation
•CPI rose at annual rate of 3.5% in March, down from a rate of 5.0% at this
time last year and down from 40-year high of 9.1% in June 2022
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ECONOMIC EXPECTATIONS
Prices
Inflation Rate %
Core Inflation Rate %
Food Inflation %
PCE Consumption Index %
Core PCE Index %
CPI Inflation Rate
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ECONOMIC EXPECTATIONS
Overview
GDP Growth Rate %
GDP Annual Growth Rate %
Unemployment Rate %
Federal Funds Rate %
GDP Annual Growth Rate
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IMPACTS ON 2025 BUDGET
•Labor Agreements for Public Safety Contracts
•Health Insurance
•Worker’s Compensation Insurance
•Property Casualty Insurance
•Utility Funds –no ARPA funds to fund capital projects going forward
•Metropolitan Council Environmental Services (MCES) Fee –Sanitary Sewer
•Liquor Store –impact of cannabis on liquor sales
•No Elections
•Investment Income
•Public Safety Aid
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PROPERTY TAX LEVY
2025 B UDGET
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PROPERTY TAX LEVY TREND
Property Tax Levy %, 2014-
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2014201520162017201820192020
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POTENTIAL TAX LEVY IMPACTS FOR 2025
•3% General Fund Tax Levy Increase
o$448,500 additional revenue
o$20 approximate annual property tax increase for median value homeowner
•5% General Fund Tax Levy Increase
o$747,500 additional revenue
o$40 approximate annual property tax increase for median value homeowner
•8% General Fund Tax Levy Increase
o$1,196,000 additional revenue
o$70 approximate annual property tax increase for median value homeowner
*** These numbers are approximate and based on very preliminary valuation data. 1st PRISM data
from Department of Revenue released August/September. Tax Capacity is based on gross tax
capacity, tax increment and fiscal disparities data, some of which are not available yet and/or
finalized yet ***
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NEXT STEPS AND
OTHER CONSIDERATIONS
2025 B UDGET
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PROPOSED 2025 BUDGET CALENDAR
April 22Discuss outlooks and objectives with the City Council
July 8Discuss Proposed 2025–2029 CIP with City Council
August 26Discuss Property Tax Levy scenarios with City Council
September 9Discuss Proposed 2025 Budget and Property Tax Levy with City
Council
September 23Adopt the Proposed 2025 Budget and Property Tax Levy
September 23Adopt Final Housing and Redevelopment Authority Property
Tax Levy
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CITY COUNCIL CONSIDERATIONS
•Based on the current economic conditions and the needs of the
organization, what changes, if any, should the City consider in
budget development process?
•Are there any other budget questions or priorities the City Council
would like to consider?
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THANK YOU! QUESTIONS?
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2025 Budget Calendar
City of Fridley, Minnesota
DateActivityResponsible Party
February 5Information Technology Project Request Form sent to Departments.
Finance Director/IT Manager
March 2Information Technology Project Request Forms due to the Finance Department.
Department Directors
March 5Capital Investment Program (CIP) Request Forms released to Departments.
Finance Director
March 29CIP Request Forms due to the Finance Department.
Department Directors
April 22"Outlook and Objectives" Review with City Council.
Finance Director
June 1Annual Town Hall Meeting
Department Directors/City Manager
June 10Review 2023 Audit with City Council
Finance Director
June 28Proposed 2025-2029 CIP released to City Council.
Finance Director
July 8Proposed 2025 Budget Instructions, New Request Forms and Targets released to Departments.
Finance Director
Discuss Proposed 2025-2029 CIP with City Council.
July 8Finance Director
Proposed 2025-2029 CIP submitted to Anoka County for review and comment.
July 12Finance Director
July 24New Budget Request Forms and changes due to Finance Department.
Department Directors
August 1Minnesota Department of Revenue notifies City of State Aid amounts.
Finance Director
July 31-Aug. 1Department Meetings with the City Manager to review new budget requests and changes.
Department Directors/City Manager
August 26Discuss Property Tax Levy Scenarios with the City Council.
Finance Director
September 1Minnesota Department of Revenue notifies the City of any applicable Property Tax Levy limits.
Finance Director
September 1Proposed 2025 Budget released to City Council.
Finance Director
September 7HRA Board approves Preliminary/Final Housing and Redevelopment Authority (HRA) Property Tax Levy.
HRA
September 9Discuss Proposed 2025 Budget, including CIP, with City Council.
Finance Director
September 23Adopt Proposed 2025 Property Tax Levy and Budget, and announce Public Meeting (Truth-in-Taxation) date.
City Council
September 23Adopt Final HRA Property Tax Levy.
City Council
September 30Proposed Property Tax Levy submitted to Anoka County
Finance Director
September 30Final HRA Property Tax Levy submitted to Anoka County
Finance Director
October 4All Proposed 2025 Budget, including CIP, changes and revisions due to Finance Department.
Department Directors
Oct. 9-10Department Meetings with the City Manager to review new budget requests and changes, if needed.
Department Directors
October 25All Final, Proposed 2025 Budget, including CIP, changes and revisions due to Finance Department.
Department Directors
October 28Discuss the Proposed 2025 Utility Rates and Fees (Water, Sewer, Storm Water and Recycling) with City Council.
Finance Director
November 7Discuss Proposed 2025 HRA Budget
Finance Director
November 11Discuss 2025 Budget, including CIP, with City Council (if needed).
Finance Director
November 11Adopt the 2025 Utility Rates and Fees (Water, Sewer, Storm Water and Recycling).
City Council
Week of November 11Anoka County sends parcel-specific, estimated tax estimates to taxpayers, due to taxpayers by November 24.
Anoka County
November 25Hold Public Meeting (Truth-in-Taxation) on Proposed 2025 Budget and Property Tax Levy.
City Council
December 5Adopt 2025 HRA Budget
Finance Director
December 9Adopt 2025 Budget, 2025-2029 CIP, 2025 Property Tax Levy.
City Council
December 20Submit Final 2025 Property Tax Levy certified to Anoka County (and Form TNT).
Finance Director
Please note that the Proposed 2025 Budget Calendar may change based on the direction of the City Council and/or City Manager.
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AGENDA REPORT
Meeting Date:April 22, 2024 Meeting Type:City CouncilConference Meeting
Submitted By:Walter T. Wysopal, City Manager
Title
Islands of Peace Regional Park Discussion
Background
Staff will provide an update to the City Council on the Islands of Peace Regional Park.
Focus on Fridley Strategic Alignment
X Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building
Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship
Organizational Excellence
Vision Statement
We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses.
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