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Home My WebLink AboutVIII-C-02 - 2019 BudgetCity of Hastings  101 Fourth Street East  Hastings, MN 55033-1944  Phone: 651-480-2350  www.hastingsmn.gov City Council Memorandum To: Mayor Hicks & City Council From: Melanie Mesko Lee, City Administrator Date: December 17, 2018 Item: 2019 Budget Adoption Resolutions Council Action Requested Approve the resolutions:  2019 Final Budget and Final Levy  2019 Special Levy  2019-2023 CIP and CEP Background Information On December 3, 2018, the City Council held a public hearing in accordance with Truth in Taxation requirements and a presentation on the 2019 budget was made. It is staff’s recommendation that the City Council approve each of the three attached resolutions relating to the 2019 budget and tax levy as developed through the leadership and guidance from the full Council and the Finance Committee (Balsanek, Braucks, Vaughan). The 2019 budget includes a 5.6% levy increase and is operationally balanced, using one-time funding such as Local Government Aid (LGA) for one-time expenses. Governmental Operating Funds Proprietary Funds Infrastructure Total - City Property Taxes 13,766,006$ 13,766,006$ Intergovernmental Revenues 730,300 - 730,300 Local Government Aid 710,028 710,028 Charges for Services 5,457,855 5,843,087 11,300,941 Interest & Other 1,215,886 197,000 900,000 2,312,886 Bond Proceeds 1,010,000 2,088,000 3,098,000 21,880,075$ 7,050,087$ 2,988,000$ 31,918,161$ 2019 Recommended Revenue Budget - City Funds VIII-C-02 City of Hastings  101 Fourth Street East  Hastings, MN 55033-1944  Phone: 651-480-2350  www.hastingsmn.gov The median home value will see an approximate $27 decrease in their City property tax due to the reduction in the City’s tax rate for 2019. Individual property owners may see individual changes associated with home valuation. Governmental Operating Funds Proprietary Funds Infrastructure Total - City General Government 3,858,867$ - 3,858,867$ Public Safety 9,917,643 9,917,643$ Public Works 1,915,014 5,419,726 3,672,800 11,007,540$ Culture and Recreation 2,890,017 2,890,017$ Debt Service 3,952,922 334,216 4,287,138$ 22,534,463$ 5,753,942$ 3,672,800$ 31,961,205$ 2019 Recommended Expense Budget - City Funds VIII-C-02 City of Hastings  101 Fourth Street East  Hastings, MN 55033-1944  Phone: 651-480-2350  www.hastingsmn.gov The City’s website (www.hastingsmn.gov/budget) has a number of budget resources available including the Budget at a Glance, the budget, and the 2019-2023 Capital Improvement Plan and Capital Equipment Plan. I would like to express my appreciation to the committee members for their thoughtful consideration and leadership throughout the last several months. Their professionalism is representative of the culture of the entire City Council. I am also deeply grateful to our fine staff, especially Finance Manager Melanie Lammers and Administrative Services Director Julie Flaten for their insight and commitment to our CORE values throughout the budget development process. Council Committee: The Finance Committee met numerous times throughout 2018 to develop the 2019 budget recommendations. Financial Impact The 2019 budget has been prepared and expenditures will begin as of January 1, 2019. Attachments: Resolutions:  Final 2019 City Property Tax Levy and Final Budget  Final 2019 HEDRA/HRA Special Tax Levy  Final 2019-2023 Capital Improvement Plan and Capital Equipment Plan VIII-C-02 Capital Improvement Plan City of Hastings, Minnesota PROJECTS BY DEPARTMENT 2019 2023thru Total2019 2020 2021 2022 2023Department Project # Aquatic Center PKS-19-001 35,00035,000Shade Structure PKS-20-001 200,000200,000Pool house renovations PKS-POOL - 1 20,00020,000Play Feature PKS-POOL-6 20,00020,000Parking Lot Maintenance PKS-POOL-8 15,00015,000Filter Sand Replacement 290,00075,000 200,000 15,000Aquatic Center Total Arena PKS-20-002 393,000393,000West rink roof PKS-20-003 200,000200,000Entrance Vestibule PKS-AR19-001 37,00037,000Restroom Remodel PKS-AR19-002 40,50040,500Low-E Ceiling PKS-AR19-003 31,70031,700Exterior building repairs 702,20031,700 37,000 633,500Arena Total Community Development COMM-2019-1 42,40042,400CEDA Business Incubation COMM-2019-2 200,000200,000Block 1 Enviro Cleanup COMM-2019-3 15,00015,000Branding Message COMM-2019-4 30,00030,000Future Business Park 287,400215,000 42,400 30,000Community Development Total Facilities FAC-19-005 15,00015,000Public Square needs analysis update 15,00015,000Facilities Total Parks & Recreation PKS-19-010 9,0009,000Park Restoration- Vermillion Linear/Old Mill PKS-19-011 17,00017,000Pavement Management Plan PKS-20-004 100,000100,000Pioneer Warming House PKS-20-008 5,0005,000Wilson Park Basketball Court Resurfacing PKS-20-009 5,0005,000Isabel Park Basketball Court Resurfacing PKS-21-006 25,00025,000Seal and stripe JMF Parking Lot 161,00026,000 110,000 25,000Parks & Recreation Total Public Works - Engineering PW-19-003 2,961,0002,961,0002019 Neighborhood Infrastructure Area 1 PW-19-004 400,000400,0002019 Mill & Overlay PW-19-014 150,000150,000HWY 61 (Vermillion Street) Scoping Study PW-19-015 65,00065,000Gen Sieben Dr -Ped. Crossing Enhancements PW-19-016 1,037,0001,037,0002019 Neighborhood Infrastructure #2 Monday, December 10, 2018Page 1Produced Using the Plan-It Capital Planning Software VIII-C-02 Total2019 2020 2021 2022 2023Department Project # pw-20-003 600,000600,0002020 Mill & Overlay (State Aid Street(s)) PW-20-004 2,500,0002,500,0002020 Neighborhood Infrastructure Improvements PW-21-001 2,500,0002,500,0002021 Neighborhood Infrastructure Improvements PW-22-002 2,500,0002,500,00015th Street Improvements-Part 2 (Pleasant to Pine) 12,713,0004,613,000 3,100,000 2,500,000 2,500,000Public Works - Engineering Total Stormwater PW-19-POND 25,00025,000Ponding Basin Bathymetric Evaulations 25,00025,000Stormwater Total Wastewater PW-19-006 300,000300,0002019 Sanitary Sewer Lining Program PW-21-002 300,000300,0002021 Sanitary Sewer Lining Program 600,000300,000 300,000Wastewater Total Water PW-21-007 750,000750,000Water Tower Painting 750,000750,000Water Total GRAND TOTAL 15,543,6005,225,700 3,327,400 3,642,000 2,700,000 648,500 Monday, December 10, 2018Page 2Produced Using the Plan-It Capital Planning Software VIII-C-02 Capital Equipment Plan City of Hastings, Minnesota PROJECTS BY DEPARTMENT 2019 2023thru Total2019 2020 2021 2022 2023Department Project # Administration ADM-18-004 10,00010,000LOOP Bus Service ADM-18-006 10,00010,000Arts Task Force 20,00020,000Administration Total Aquatic Center PKS-18-002 40,00040,000Play structure reconditioning PKS-POOL-10 27,00027,000Slide Steps Replacement PKS-POOL-11 50,00050,000Mechanical Room Renovations PKS-POOL-3 200,000200,000Pool Replaster PKS-POOL-4 20,00020,000Shade Structure - Lifeguard Stands PKS-POOL-5 10,00010,000Pool Caulk and Tile PKS-POOL-7 15,00015,000Liquid End of Pump and Strainer PKS-POOL-9 8,0008,000Main Drain Cover Replacment 370,00063,000 50,000 37,000 20,000 200,000Aquatic Center Total Arena PKS-18-003 130,000130,000Ice Resurfacer Zamboni PKS-18-004 39,70039,700Sound system PKS-21-001 21,00021,000Locker room furnace PKS-22-001 130,000130,000Zamboni PKS-22-002 90,00090,000East rink bleachers PKS-22-003 1,500,0001,500,000Refrigerant system conversion 1,910,700169,700 1,521,000 90,000 130,000Arena Total Building & Inspections BLD 30,00030,000Replacement Truck 30,00030,000Building & Inspections Total Facilities FAC-001 225,000225,000Boilers - City Hall FAC-18-002 1,900,0001,900,000City Hall Rennovation FAC-18-003 200,000200,000HVAC/Energy Management System Upgrades -City Hall FAC-18-004 85,00085,000Police Station tuck pointing FAC-19-001 9,0009,000City Hall Basement Dryer FAC-19-004 1,200,0001,200,000Police Department Rennovation FAC-19-006 400,000400,000Furniture/Equipment Remodel Project FAC-19-007 525,000525,000Fees/Servies Remodel Project FAC-19-008 20,00020,000City Hall Lighting Upgrade FAC-19-009 5,0005,000Public works 24 hour LED lighting FAC-19-010 6,0006,000Public works Garage LED FAC-19-011 20,00020,000Panel Replacement FAC-19-012 20,00020,000Elevator Controls Monday, December 10, 2018Page 1Produced Using the Plan-It Capital Planning Software VIII-C-02 Total2019 2020 2021 2022 2023Department Project # FAC-20-001 150,000150,000Police Station Boiller Upgrade FAC-22-001 150,000150,000Police Station Chiller Replacement FAC-22-002 125,000125,000Police Station Roof Replacement FD-19-006 30,00010,000 10,000 10,000Fire Department Heating/Air Conditioning Units PW-18-007 30,00030,0002002 Small Mower 5,100,000316,000 444,000 4,255,000 85,000Facilities Total Fire & Ambulance FD-18-003 585,000585,000Engine 1 FD-18-004 42,00042,000Tahoe FD-19-002 195,000195,000Ambulance 2013 FD-19-003 75,00075,000Tailsman Thermo Camera FD-19-004 15,0005,000 5,000 5,0001.75" Fire Hose FD-19-005 12,50012,500Inflatable Boat FD-19-007 8,8008,800RIT Equipment (breathing bags) FD-19-008 17,01917,019Confined Space Respirators FD-19-009 16,20016,200UTV/Trailer FD-19-010 5,4805,480Exercise Equipment FD-19-011 50,00025,000 25,000ERF Radio's FD-20-001 175,000175,0002014 Life Line Ambulance FD-20-002 30,00030,0001997 SCBA Air Compressor FD-20-003 4,7004,700Tracks for ATV FD-21-002 50,00050,000Brush Truck FD-22-001 285,000285,000Ambulance - new FD-22-002 30,00020,000 10,0002 1/2" Hose Replacement FD-23-001 600,000600,000Engine 3 2,196,699256,299 294,200 715,000 321,200 610,000Fire & Ambulance Total Hydro HYD-20-001 50,00050,000Standby Emergency Generator HYD-22-001 500,000500,000Plant Dewatering 550,00050,000 500,000Hydro Total Information Technology IT-19-001 41,12141,121Computers IT-19-002 42,30742,307Wi-Fi in City Buildings IT-19-003 11,00011,000Police- VuVault Server IT-19-004 27,83727,837Office 2019 IT-19-005 7,8147,814Backup Archival IT-19-006 11,76011,760Windows 10 enterprise IT-20-001 17,45317,453Computers IT-20-002 90,00090,000Storage System - Primary IT-21-001 55,26155,261Computers IT-21-002 20,60020,600Network Switches IT-22-001 51,50051,500Computers IT-22-002 30,90030,900Network Switches IT-22-003 24,00024,000Servers 431,553141,839 17,453 165,861 106,400Information Technology Total Parks & Recreation PKS-18-007 30,00030,000Pickup with plow PKS-18-008 24,00024,000SUV PKS-18-009 45,00045,000Polar Track Monday, December 10, 2018Page 2Produced Using the Plan-It Capital Planning Software VIII-C-02 Total2019 2020 2021 2022 2023Department Project # PKS-18-010 100,00050,000 50,000Trail Surface Repair PKS-18-011 5,0005,000Tennis Court Crack Repair PKS-19-005 30,00030,000Pickup without plow PKS-19-012 16,00016,000HWY 61 Median Planting PKS-19-013 12,00012,000City Hall Tree Planting PKS-19-014 14,00014,000Downtown Planters PKS-20-006 37,50037,500Dump Body PU with plow PKS-21-003 30,00030,000Quad Cab PU with plow PKS-21-004 100,000100,000Mower PKS-21-005 30,00030,000Workman PKS-22-017 37,50037,500Dump Body PU with plow PKS-22-018 30,00030,000Quad cab PU no plow 2wd PKS-22-019 37,50037,500Pickup with plow PKS-22-020 100,000100,000Toro 5910 Mower PKS-22-021 60,00060,000Skid Steer PKS-22-022 60,00060,000Toolcat PKS-22-023 60,00060,000Tractor 858,50047,000 162,500 264,000 257,500 127,500Parks & Recreation Total Police POL-19-001 45,00045,000Police 2012 Ford Explorer R-1-H1202 POL-19-002 100,00025,000 75,000ERF-Radios POL-19-003 4,5604,560Police Admin Car-H2007 POL-19-004 45,00045,000Police 2014 Ford Exp - 1414 POL-20-001 47,00047,000Police 2015 Ford Taurus Sedan - 1411 POL-20-002 47,00047,000Police 2015 Ford Explorer - 1415 POL-20-003 45,00045,000Police 2015 Ford Exp - 1413 POL-20-004 52,00052,000Police 2008 Chevy Tahoe K9-1418 POL-21-002 47,00047,000Police 2016 Ford Explorer - 1420 POL-22-001 47,00047,000Police 2017 Ford Exp - 1419 POL-22-002 47,00047,000Police 2016 Ford Exp - 1412 POL-22-003 47,00047,000Police 2017 Ford Explorer-1417 POL-22-004 47,00047,000Police 2011 Chevy Tahoe 1419 POL-23-001 47,00047,000Police 2018 Explorer - 1416 POL-23-002 47,00047,000Police 2018 Explorer - 1410 714,560119,560 266,000 94,000 141,000 94,000Police Total Public Works - Engineering PW-18-012 102,50042,500 60,000Light Pole Replacement PW-19-001 30,00030,0002001 Dodge Dakota Pickup PW-19-005 45,00045,000Asset Management and Workflow Software PW-19-013 15,00015,000CTY RD 42 Dynamic Speed Sign PW-20-001 30,00030,0002002 SUV PW-20-005 15,00015,0002005 Traffic Counters PW-20-012 1,000,0001,000,0002020 Neighborhood Infrastructure II PW-22-001 20,00020,0002008 Plotter PW-22-008 10,00010,0002008 Large Format Scanner 1,267,50057,500 1,180,000 30,000Public Works - Engineering Total Stormwater PW-18-004 210,000210,000Mechanical Street Sweeper PW-20-006 30,00030,0001995 John Deere 6400 Tractor w/Mower Attachment PW-22-003 225,000225,000Air-Regenerative Street Sweeper Monday, December 10, 2018Page 3Produced Using the Plan-It Capital Planning Software VIII-C-02 Total2019 2020 2021 2022 2023Department Project # 465,000210,000 30,000 225,000Stormwater Total Streets PW-18-006 200,000200,0001995 Front End Loader PW-18-008 30,00030,0002003 Pickup Truck - Unit 114 - Chevy 2500 PW-18-009 30,00030,0001999 Brush Bandit Woodchipper PW-19-007 30,00030,0002002 Roller Ingersoll Rand w/trailer PW-19-008 20,00020,0001992 Air compressor PW-19-009 205,000205,0002005 Dump Truck PW-19-012 6,0006,000Pressure Washer PW-20-009 30,00030,0002003 Pickup Truck Unit 115 - Dodge 1500 PW-20-010 30,00030,0001997 Pickup Truck Unit 111 - Ford F250 PW-21-003 210,000210,0002007 Dump Truck PW-21-004 6,0006,0001991 Towmaster Trailer (Unit 186) PW-21-SKID 30,00030,0002006 BOBCAT SKID STEER PW-22-016 8,0008,0001995 Towmaster Trailer (Unit 185) PW-23-001 27,50027,5002012 Tow behind Mower Deck PW-23-002 50,00050,0002008 Kubota Mini-Excavator 912,500200,000 351,000 66,000 218,000 77,500Streets Total Wastewater PW-20-007 30,00030,000Pickup Truck PW-21-005 125,000125,000Sanitary Sewer Televising Van PW-22-009 420,000420,000Vactor Truck PW-22-010 25,00025,000Easement Sewer Cleaning Machine PW-22-011 50,00050,000Sewer Rodding Machine 650,000155,000 495,000Wastewater Total Water PW-19-010 30,00030,000Pickup Truck PW-19-011 410,000410,000Meters PW-20-008 437,000437,000Meters PW-21-006 455,000455,000Meters PW-22-012 455,000455,000Meters WTR-2018-4 170,00085,000 85,000Rehabilitate Well WTR-2018-5 10,00010,000AIR CONDITIONER WTR-2018-8 20,00010,000 10,000VARIABLE FREQUENCY DRIVE WTR-2019-1 6,0006,000SCADA COMPUTER WTR-2020-3 55,00055,000Portable Emergency Generator WTR-23-001 475,000475,000Water Meter Replacment WTR-23-002 50,00050,000Fixed Base Meter Reading System 2,573,000436,000 607,000 465,000 540,000 525,000Water Total GRAND TOTAL 18,050,0121,867,198 3,806,853 7,582,861 2,444,100 2,349,000 Monday, December 10, 2018Page 4Produced Using the Plan-It Capital Planning Software VIII-C-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 12- -18 A RESOLUTION ADOPTING THE FINAL 2019 CITY PROPERTY TAX LEVY & FINAL BUDGET WHEREAS, the City must annually prepare a budget that is responsive, responsible, and in alignment with our CORE values and strategic plan; and WHEREAS, departments prepare requests which are discussed and reviewed as a team and with the Finance Committee of the Council (Balsanek, Braucks, Vaughan); and WHEREAS, the committee has met several times over the last few months to discuss the preliminary budget information; and WHEREAS, on September 4, 2018 the City Council adopted a 2019 Preliminary Levy of $14,233,201 and the Preliminary Budget at $32,976,425,and the Final Levy cannot be higher than the Preliminary Levy; and WHEREAS, the City has sufficient cash on hand to reduce the debt levy to $3,141,681. WHEREAS, subsequent to setting the preliminary levy, City staff met with the Finance Committee in preparation of the final 2019 levy amount to be adopted by the Council in December, 2018. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; that the Final Property Tax Levy of the City of Hastings, for the 2019 City Budget to be certified is hereby adopted as follows: VIII-C-02 For Operations: General Fund 7,573,096 Parks 1,461,656 Aquatic Center 243,536 Internal Vehicle & Equip Fund 180,000 Internal Insurance Fund 100,000 Heritage Preservation 30,244 Fire & Ambulance 1,378,633 Police Reserves 9,150 DUI Enforcement & Forfeitures 1,400 Arena 113,805 Subtotal 11,091,520 For Other: TIF Bonds 2016A $228,681 For Bonded Debt: 2008A G.O. Improvement Bonds 320,000 2009A G.O. Improvement Bonds 174,000 2010B G.O. Improvement Bonds 230,000 2011 G.O. Improvement Bonds 260,000 2012 G.O. Improvement Bonds 175,000 2013 G.O. Improvement Bonds 91,000 2014 G.O. Improvement Bonds 300,000 2015 G.O. Improvement Bonds 280,000 2016 G.O. Improvement Bonds 351,000 2017 G.O. Improvement Bonds 100,000 2018 G.O Improvement Bonds 255,000 2019 G.O. Improvement Bonds 50,000 Subtotal 2,586,000 Refunded Debt: 2010A G.O. Public Facility Refunding Bonds 100,000 Subtotal 100,000 Equipment Certificates: 2013B Equipment Certificate 100,000 2015 Equipment Certificate 60,000 2016 Equipment Certificate 67,000 Subtotal 227,000 Total City Levy 14,233,201 VIII-C-02 And the final City budget is hereby adopted at $31,961,205. Adopted this 17th day of December, 2018. _______________________________ Paul Hicks, Mayor Attest: _____________________ Julie Flaten, City Clerk VIII-C-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 12- -18 A RESOLUTION APPROVING A FINAL 2019 HEDRA-HRA SPECIAL TAX LEVY WHEREAS, the Hastings Economic Development and Redevelopment Authority (the “Authority”) was created by the City Council of the City of Hastings (the “City”) pursuant to Minnesota Statutes, Sections 469.090 to 469.1081; and WHEREAS, the Authority was granted all of the powers of a municipal housing and redevelopment authority under Minnesota Statutes, Sections 469-001 to 469-047 (the “Act”); WHEREAS, Section 469.033, Subdivision 6, of the Act, as amended, permits the Authority to levy and collect a special benefit tax of up to .0185 percent of taxable market value in the City upon all taxable property, real and personal, within the City; and WHEREAS, the Authority desires to levy such tax based upon the limit of .0185 % of the taxable market value; and WHEREAS, the HEDRA 2019 budget funded by the Special Levy is $809,022; and WHEREAS, the levy of such a special benefit tax is subject to consent by Resolution of the City Council of the City of Hastings. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; that the City of Hastings HRA Special Levy be granted in the amount of $345,660. Adopted this 17th day of December 2018. _______________________________ Paul Hicks, Mayor Attest: _____________________ Julie Flaten, City Clerk VIII-C-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 12- -18 A RESOLUTION ADOPTING THE 2019 to 2023 CAPITAL IMPROVEMENT PLAN (CIP) AND CAPITAL EQUIPMENT PLAN (CEP) WHEREAS, the city council of the city of Hastings is responsible for the maintenance and improvements to city facilities, streets, parks, parks facilities, other infrastructure and community amenities; and, WHEREAS, the city prepares a five-year capital plan to address the capital needs of the city that balances the needs with the community’s ability to finance such capital expenditures; and, WHEREAS, the five-year capital plan is annually reviewed and revised as part of the city’s budget development process; and, WHEREAS, the city council has received and reviewed a preliminary 5-year capital plan as part of its 2019 budget discussions, a summary of which is attached and made part of this resolution; and, WHEREAS, the city council has incorporated a portion of the 2019 capital projects into the 2019 budget; and, WHEREAS, those projects not included in the 2019 operating budget due to their nature, financing or the fact that they are scheduled beyond 2019 and will receive further review, refinement and separate project approval; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hastings, Minnesota; adopts the 2019 to 2023 Capital Improvement Plan (CIP) and Capital Equipment Plan (CEP); and BE IT FURTHER RESOLVED that the 2019 projects incorporated into the 2019 operating budget are approved or approved subject to future approval by council as determined by the individual costs of each project or item. Adopted this 17th day of December 2018. _______________________________ Paul Hicks, Mayor Attest: _____________________ Julie Flaten, City Clerk VIII-C-02