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Home My WebLink About08-10-2026 City Council Conference Meeting August 10, 2026 at 5:30 p.m. 7071 University Avenue NE Agenda 1.Employee Resources Update 2.2027 Budget Discussion Accessibility Notice: If you need free interpretation or translation assistance, please contact City staff. Upon request, accommodations will be provided to allow individuals with disabilities or those needing interpretation services to participate in City of Fridley services, programs or activities. If you are in need of an interpreter or require auxiliary aids, contact the City at 763-572-3450 at least five business days in advance to ensure arrangements can be made. A solicitud, se darán adaptaciones para permitir que las personas con discapacidades o las que necesiten servicios de interpretación participen en los servicios, programas o actividades de la Ciudad de Fridley. Si necesita un intérprete o requiere ayudas auxiliares, comuníquese con la Ciudad al 763-572-3450 al menos cinco días hábiles de antelación para asegurar que se puedan hacer los arreglos. Markii la codsado, adeegyo caawimaad ah ayaa la siin doonaa dadka naafada ah ama kuwa u baahan adeegga turjumaadda si ay uga qayb qaataan adeegyada, barnaamijyada, ama hawlaha magaalada Fridley. Haddii aad u baahan tahay turjubaan ama qalabka caawiya dadka naafada ah, kala xiriir Magaalada taleefankan 763-572-3450 ugu yaraan shan maalmood oo shaqo kahor, si loo hubiyo in qabanqaabada laguu sameeyo. Raws li kev thov, yuav muaj kev pab tshwj xeeb rau cov neeg xiam oob qhab lossis cov uas xav tau kev pab txhais lus kom lawv tuaj koom tau nrog Nroog Fridley (City of Fridley service) cov kev pab cuam, cov kev kawm, los sis cov dej num sib txawv. Yog koj xav tau neeg txhais lus los sis xav tau lwm yam kev pab, thov hu rau lub Nroog ntawm 763-572-3450 kom tsis pub tsawg tshaj tsib hnub ua hauj lwm ua ntej, xwv kom peb thiaj li npaj tau rau koj raws li lub sij hawm ntawv. AGENDA REPORT Meeting Date: August 10, 2026 Meeting Type:City Council Conference Submitted By:Becca Hellegers, Employee Resources Director Title: Employee Resources Update Background Employee Resources will provide an update on Personnel. Recommendation Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. AGENDA REPORT Meeting Date: August 10, 2026 Meeting Type:City Council Conference Submitted By:Joe Starks, Finance Director Title: 2027 Budget Discussion Background City Council and staff will discuss the 2027 Proposed Budget including assumptions being used for the budget development process, revenue and expenditure data received thus far, preliminary tax capacity figures, and outstanding items still being finalized. Recommendation Attachments and Other Resources 1.08-10-2026 Proposed 2027 Budget Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. 2027 BUDGET AUGUST 10, 2026 BUDGET OBJECTIVES/PRINCIPLES •Fund excellent public services at a fiscally responsible cost •Stabilize ongoing revenues and expenditures and minimize/eliminate unanticipated variances •Maintain structural balance and appropriate cash/fund balance levels •Make best use of existing City resources •Set levy in conjunction with long-term plans to mitigate “peaks and valleys” and “pushing it down the road” •Provide accountability and transparency throughout the budget process •Conservative budgetary approach 2 ECONOMIC EXPECTATIONS •State Forecast •The State’s projected budget surplus for FY 2026-27 is currently $3.7 mil., down from $17.5 billion 2 years ago, but up $1.3 bil. from November estimates •Projected balance for FY 2028-29 of $377 mil. •Significant structural imbalance moving forward •Local Government Aid (LGA) •2026 reduction of $302k after 2025 certified at $265 increase •LGA is certified for 2027 at $1,902,552 ($5,920 increase from 2026) 3 GENERAL FUND, BALANCE HISTORY General Fund Balance History, 2016-2025 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Working Capital 35%Working Capital 50%Fund Balance 4 GENERAL ASSUMPTIONS •Contractual obligations for wages and benefits o Negotiation of 4 Public Safety labor agreements (market adjustments in 2026) o Planned progression through the City’s compensation plan and market adjustments/reclassifications •Health Insurance •2027 increase negotiated not to exceed 15% (as part of 0% for 2026) •PERA, Payroll Taxes, Paid Family Medical Leave (% unchanged) •Worker’s Compensation Insurance from League of MN Cities (LMC) budget guide •Property/Liability Insurance from LMC budget guide •Removal of one-time expenditures and revenues from 2026 budget to the 2027 budget Major Budget Assumptions, Expenditures CategoryAdjustment Salaries and Wages (not including step 3.0% movement) Health Insurance15.0% Worker’s Compensation9.0% Property/Liability Insurance11.0% 5 TAXABLE MARKET VALUE (EMV) BY PROPERTY CLASS 6 FISCAL DISPARITIES •Fiscal disparities program (enacted in 1971) is a system for partial sharing of commercial-industrial (C/I) property tax base among all jurisdictions within the 7-county metropolitan area •Each taxing jurisdiction annually contributes 40% of the growth in its C/I tax base •Met Council and Department of Revenue •Each municipality then receives (is distributed) a shared of the areawide contributed tax base and it is based on its share of the area’s population and its tax base per capita •Fridley has historically been one of the largest net contributors program-wide •According to very preliminary figures, the City may be contributing less for Assessment Year 2026/Payable Year 2027 • 7 FISCAL DISPARITIES •2027 Contribution (lowers tax capacity or tax base) of approximately $9,503,527 •Decrease of approximately $1,339,083 from 2026, or 12.35% •Increase for 2026 was approximately $994,160, or 10.09% •2027 Distribution (lowers levy amount) of approximately $3,234,441 •Increase of approximately $223,036 from 2026, or 7.41% •Increase for 2026 was approximately $139,884 for 2026, or 4.87% 8 FISCAL DISPARITIES 9 PROPERTY TAX LEVY TREND Property Tax Levy %, 2017-2026 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2017201820192020202120222023202420252026 10 OUTSTANDING ITEMS •Secondary review of personnel budgeting. •Forecasted external revenue amounts. •Allocation percentage of LGA between capital project funds and general fund. •Consideration of any new budget requests. 11 NEXT STEPS AND OTHER CONSIDERATIONS 2027 B UDGET 12 UPCOMING MEETINGS August 10Discuss 2027 Budget/Property Tax Levy with City Council August 24Discuss 2027 Budget/Property Tax Levy with City Council and 2027-2031 Capital Investment Program (CIP) September 14Adopt the Proposed 2027 Budget and Property Tax Levy Adopt Final Housing and Redevelopment Authority Property Tax Levy Looking Ahead… December 14Truth-in-Taxation Hearing 13 THANK YOU! QUESTIONS? 14