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HomeMy WebLinkAbout09-04-2018 WSCH COLUMBIA HEIGHTS -ity of Columbia Heights 59040 th Avenue NE, Columbia Heights, MN 55421 -3878 (763) 706 -3600 Visit our website at: www.columbiaheightsmn.gov Meeting of: Date of Meeting: Time of Meeting: Location of Meeting Purpose of Meeting: NOTICE OF WORK SESSION Columbia Heights City Council Tuesday, September 4 , 2018 7:00 PM (Following the EDA Meeting) City Hall- Conference Room No. 1 Worksession Mayor Donna Schmitt Councilmembers Robert A. Williams John Murzyn, Jr. Connie Buesgens Nick Novitsky City Manager Walter R. Fehst 1. Request to purchase speed enforcement equipment 2. City of Peace Neighborhood Center Facility Use Policy 3. Summary presentation on 2019 City Manager's Proposed Budget Auxiliary aids or other accommodations for disabled persons are available upon request when the request is maae dL iedbi �O IIUUIJ ��•� �- Please contact the City Clerk at 763- 706 -3611 or kbruna columbiahei htsmn. ov to make arrangements. WS Item I COLUMBIA HEIGHTS POLICE DEPARTMENT a MEMORANDUM To: Mayor Donna Schmitt Members of the Columbia Heights City Council Walt Fehst, City Manager From: Lenny Austin, Chief of Police Subject: Request to purchase speed enforcement equipment Date: August 30, 2018 One of the biggest concerns expressed to law enforcement by citizens is speeding in residential neighborhoods. Over the past 17 years we have used our CHPD speed trailer to analyze speeding complaints as well as to reduce speeding issues in targeted areas. The current CHPD speed trailer was purchased in June of 2001 for $13,840. The trailer is fairly heavy, which makes it difficult for CSO's to park by hand in the CHPD garage. At this time the trailer only runs off a battery that needs to be recharged every other day in order for it to work. Over the years, the trailer has sustained some damage, including an accident around 2009 where the solar panel was broken off. We have explored different equipment options from Stalker Radar. We are requesting to purchase a new speed trailer that is much lighter to move and can stay parked indefinitely while running off of solar power. The new speed trailer is $7,588.00. One of the issues with using a speed trailer to collect speeding data is that the trailer in itself causes traffic to slow down and in turn produces data that is not entirely accurate. Therefore, we are also requesting to purchase a traffic data collector. The data collector mounts to a pole or sign post inconspicuously and counts the number of cars traveling on the street along with speed data. The data collector will not be recognized by cars and therefore will provide a more accurate analysis of traffic issues on a street. The data collector is $1,990.00. The Police Department would also like to partner with Public Works on the purchase of a message trailer which would be an effective communication tool. The trailer has a speed sensor built into it along with a solar panel, with a programmable message board which is 3 feet by 6 feet in size. The police department would use the trailer to notify the public of events like the Jamboree and holiday train, traffic changes, training events in the area and other uses. The Columbia Heights Public Works Department also has a need for this message trailer to help with road construction and other traffic events. Public Works has agreed to split the cost of the trailer with the police department. The total cost of the message trailer is $14,924.00. The police department would be responsible for $7,462.00 and public works would be responsible for $7,462.00. We request that the police share of the message trailer be purchased using DWI forfeiture money. Public Works has provided line items from their annual budget that they would like to use to purchase their half of the trailer. The Police Department's total expenditure for the speed trailer, data collector and message center is $17,040. Our current city DWI forfeiture fund has a balance of $22,624.35. We ask that this equipment be purchased using DWI forfeiture money. Stalker SAM I Speed Awareness Monitor =. 4� 5. Stalker's SAM trailers are powered by Precision Solar Controls and feature Stalker speed measurement accuracy in a rugged, dependable trailer platform. 0 Optional Solar Panels 18" Amber LED characters - legible at up to 1000 ft. 0 41D Deep -cycle battery - provides over 18 days of operation and longer time between charges ■ Stalker K -Band Doppler Radar 0 New Optional Programmable LED Violator Alert Optional Integrated Statistics Package Programmable LED Violator Alert (Optional) Stalker Message Center 360 Mast - Mounted Variable Message Sign 3' x 6' diyr P K 8' display Rotates 360 degrees - Innovative design allows mast to raise, lower, pivot, and lock for easier towing, setup and positioning. Now 2 models to choose from: • 3' x 6' display panel • 4' x 8' display panel Fi Product Features: ■ MUTCD- compliant ■ Highly efficient travel configuration ■ 300+ memorized, customized, user - programmable messages • Full matrix, amber LED characters - legible at up to 850 ft. • (4) Deep -Cycle batteries - provide a longer time between charges and up to 21 days of operation ■ Optional Stalker Traffic Anal st • Optional top -mount solar panels for increased autonomy • NEW - Optional on -board modem and WiFi provides web -based 4G remote access for real -time message updating, battery voltage monitoring, and alerts CH COLUMBIA HEIGHTS AGENDA SECTION Work Session ITEM NO. WS2 MEETING DATE SEPTEMBER 4, 2018 CITY OF COLUMBIA HEIGHTS - COUNCIL LETTER ITEM: CITY OF PEACE NEIGHBORHOOD CENTER FACILITY USE POLICY DEPARTMENT: Recreation CITY MANAGER'S APPROVAL: BY /DATE: Keith Windschitl 08/22/18 BY /DATE: BACKGROUND: The City of Peace Neighborhood Center was completed at the end of 2017 with a soft opening on January 17, 2018. The building is a moderate size room with seating capacity of 26 and total capacity of 64. It has interior restrooms and an attached covered picnic area with three large picnic tables. The building is heated and cooled and is access controlled with video monitoring. The space also has a small office that is intended for staff use only as it houses a computer linked to the Police network and IT systems. The City Council, on the date of May 14, 2018, approved the original Facility Use Policy. Upon implementation of the policy the Recreation Department had many concerns based on the safety, security, and feasibility of public use in the building. On August 22, 2018 the Park and Recreation Commission discussed and recommended various changes to the current policy. The building is intended to serve the needs of users from the Recreation Department, School District, and Police outreach for the neighborhood. ANALYSIS /CONCLUSIONS: The Park and Recreation Commission is recommending the policy be amended to only rent out the facility to civic groups within Columbia Heights to be used for community events. This recommendation is based on several concerns. Parking limitations and congestion concerns especially given all of the children in the immediate area. To keep the building, technology, and furnishings protected from damage that could occur from renters. The computerized access card, dog key, and alarm system. The original intent of the building was not intended for commercial or private use. To minimize the weekly maintenance, cleaning, and trash collection at the facility. The facility does not have a building custodian. Users will be required to pick up after usage. Rental fee of $100 per hour, a 3 -hour minimum, and a refundable $250 damage deposit, cash or credit. STAFF RECOMMENDATION: Recreation recommends approval of the revised City of Peace Neighborhood Center Facility Use Policy. RECOMMENDED MOTION(S): Move to accept the revised City of Peace Neighborhood Center Facility Use policy. ATTACHMENT(S): City of Peace Neighborhood Center Facility Use Policy (Revised) a CH COLUMBIA HEIGHTS City of Columbia Heights I City of Peace Neighborhood Center 1311 Circle Terrace Boulevard NE, Columbia Heights, MN 55421 • www.columbiaheightsmn.gov CITY OF PEACE NEIGHBORHOOD CENTER FACILITY USE POLICY PURPOSE: To list requirements for use of the City of Peace Neighborhood Center by individuals and organizations. GUIDELINES: 1. The primary purpose of the space within the City of Peace Neighborhood Center is to support City programs and services. Activities, meeting, exhibits, and programs sponsored, co- sponsored or otherwise provided by the City of Peace Neighborhood Center will have priority for the use of all rooms. 2. The City of Peace Neighborhood Center makes meeting space available to civic groups regardless of beliefs or affiliation of the individuals or groups requesting their use. Scheduling for rooms will be handled by the Recreation Department or designated staff. a. All reservations are placed on the calendar. The phone number and name of the person assuming responsibility for the use of the City of Peace Neighborhood Center, and name of the group are needed to reserve a room. b. Those reserving City of Peace Neighborhood Center must complete and sign a "Facility Use Responsibility Agreement" and will receive a copy of this policy. The person must be of legal age. c. The City of Peace Neighborhood Center may be rented for a fee of $100 per hour, a 3- hour minimum, and a damage deposit of $250. Payments must be received in cash or credit card. The room may be rented when not being used for City programs between the hours of 7 a.m. and 10 p.m., Monday through Saturday. A completed "Facility Use Responsibility Agreement" and all rental fees are due in full before the scheduled meeting. d. Lessee should notify the Recreation Department of cancellations as soon as possible so that the space may be used by others. Rental fees may be refundable with a forty -eight hour notice of cancellation. Three no -shows for a reservation will result in loss of rental privileges for one year. 4. The City of Peace Neighborhood Center maybe scheduled by Columbia Heights civic groups that are open to the general public and appropriate to the facility. a. Appropriate use would not include activities that might damage the facilities, and those which may interfere with the regular use of the City of Peace Neighborhood Center. 5. The rooms may not be used for commercial purposes or functions. a. No fees maybe charged to individuals attending meetings or programs. b. Exceptions may be made for recreation or law- related activities and materials required for training. 6. Approval to use the City of Peace Neighborhood Center room does not constitute an endorsement by the City of any beliefs, policies, information, or programs of the user. All advertisements, press releases; announcements, and posters must list the individual or organization responsible for the event and include the following statement: "This event is NOT sponsored by the City of Columbia Heights." 7. The number of persons using a room must not exceed the legal capacity of the room. Persons reserving the room must sign a responsibility form and agree to leave the room in good condition. Person reserving the room will be responsible for any damage incurred. 8. Reservations will not be accepted more than thirty (30) days in advance of meetings. Rooms are available on a first -come, first -served basis. No provision will be made to reserve the room on a constant or re- occurring basis; the room will be booked for each meeting as appropriate. 9. The City of Peace Neighborhood Center is intended for the use of local civic groups. Any organization requesting use of the building may write a letter of request to the Park & Recreation Commission. 10. No cooking will be allowed; no small appliances may be used; no meals will be served; no alcoholic beverages will be allowed. 11. State and local fire codes apply to use of City of Peace Neighborhood Center. 12. Storage of equipment or supplies for groups using the room will not be allowed. 13. The City of Peace Neighborhood Center includes a screen and HDMI or USB connections. Presenters must bring their own laptops. 14. Nothing may be affixed to the walls (e.g. tape, tacks, putty, temporary hangers, etc.) 15. Furniture must remain in the space. No other items may be brought into the room without prior permission of the City. 16. Rooms are to be in the good order in which they are found. Chairs and tables will be returned to the original places. The room must be vacant by the hour specified on the application or 15 minutes before closing time. The City of Peace Neighborhood Center may be rented between the hours of 7:00 a.m. and 10:00 p.m., Monday through Saturday. User will be responsible for any damage to room, furniture, or equipment. 17. Smoking is NOT allowed anywhere in the City of Peace Neighborhood Center. 18. The City reserves the right to revoke a reservation to use the meeting room if the room is needed for City purposes at the specified time. A two -week notice of cancellation will be given. Approved: City Council 0 CH COLUMBIA HEIGHTS City of Columbia Heights / City of Peace Neighborhood Center www.columbiaheightsmn.gov 1311 Circle Terrace Boulevard NE, Columbia Heights, MN 55421 CITY OF PEACE NEIGHBORHOOD FACILITY USE POLICY RESPONSIBILITY FORM I, the undersigned, as a representative of the following named organization, do hereby understand that I and my group are to leave the meeting room of the Columbia Heights City of Peace Neighborhood Center in good condition after our use of it. Trash will be picked up and the room will be left as it was found. Any damage incurred as a result of our use of the room will be the responsibility of myself and the group. I have read and understand the facility use policy. I understand that the City of Columbia Heights is not a sponsor of my program or meeting and that it assumes no responsibility for the program or its contents. Notices and advertisements may list the City of Peace Neighborhood Center as the location but will clearly identify the program sponsor and will not imply either City of Columbia Heights endorsement or sponsorship. I further guarantee that the room will no be used for a profit- making enterprise either by myself or the group. WAIVER OF CLAIMS: In consideration of your accepting this application, 1, on behalf of said organization agree that the City of Columbia Heights shall be held Harmless and will not be liable for any injury or disability suffered by any attendee of said organization's event as a result of use of the facility. This agreement is specifically binding upon any attendee (i.d. employee, member, agent, contractor or event participant) of said organization's event. I, THE UNDERSIGNED, CERTIFY THAT I UNDERSTAND AND AGREE TO THE PROVISIONS LISTED ABOVE ON BEHALF OF SAID ORGANIZATION. Group representative: Signature Print name Phone number Date Group name and address: OFFICE USE ONLY Reservation Fee plus tax amount paid Reservation Date: Time: ROOM CAPACITY IS LIMITED TO 64 PEOPLE City Manager's 2019 Budget Message (Including budget and levy recommendations) CITY OF COLUMBIA HEIGHTS CITY MANAGER'S 2019 BUDGET MESSAGE TABLE OF CONTENTS Summary Budget Information ............... .............31 Overview..................................................................................................................... ..............................1 CityManager's Budget Message ............................................................................... ............................... 3 Five -Year Financial Plan for Tax - Supported Funds .................................................... ............................... 6 Resolution 2018 -50 Proposed Budget for 2019 ........................................................ ............................... 7 PropertyTaxes 2010 -2019 ........................................................................................ ............................... 9 Property Taxes on Homestead Properties with Various Values .............................. ............................... 10 Historyof State Aid Reductions ................................................................................. .............................11 Tax - Supported Operating Revenue ........................................................................... .............................12 Tax - Supported Operating Expenditures .................................................................... .............................13 Summary by Fund (all budgeted funds of City, EDA, HRA) ........................................ . ............................ 15 Summary Changes in Fund Balances 2017 ............................................................. ............................... 20 Standard and Poor's Credit Report on 2017 General Obligation Bonds ................. ............................... 23 Detailed Budget Information Administration.................................................................... ............................... ............... .............31 CommunityDevelopment ....................................................................................... ............................... 39 Finance................... ............................... .............................................................. ............................... 47 Fire........................................................................................................................... ............................... 55 GeneralGovernment ................................................................................................. .............................63 Library...................................................................................................................... ............................... 69 LiquorOperating ..................................................................................................... ............................... 73 LiquorNon - Operating ............................................................................................. ............................... 77 Police....................................................................................................................... ............................... 79 PublicWorks ........................................................................................................... ............................... 85 Recreation................................................................................. ............................... ............................129 Bonds......................................................................................... ............................... ............................143 OVERVIEW Form of Government The City of Columbia Heights (the City) is located within Anoka County in the State of Minnesota. The City operates under a council- manager form of government, pursuant to a home -rule city charter adopted by the qualified voters of the City. All policy decisions and legislative activities of the City are the responsibility of the City Council, but administrative duties are delegated to the City Manager by the City Council. One of the many administrative duties delegated to the City Manager is to prepare an annual budget for approval by the City Council. Budget Process Each May, the annual budget process begins with each city department analyzing objectives for the coming calendar year and preparing budget requests to accomplish those objectives. During the month of June, this departmental data is integrated into the City's centralized accounting system by the Finance Department and reviewed. During the month of July, the City Manager, together with the Finance Director, meets with each department to further review their budget requests and discuss any changes proposed by the City Manager. The Finance Department then incorporates any such changes into the City's centralized accounting system, and assembles the City Manager - proposed budget for distribution at a regular City Council meeting in August, as required under the City's charter. The City Council then reviews this City Manager - proposed budget, which includes the proposed property tax levy necessary to finance the budget. Under state statute, the City Council must approve a proposed budget and proposed property tax levy by September of each year. This allows the Anoka County Auditor sufficient time to prepare and mail to each property owner a notice by November 24th, listing the tax proposed for their property and the date of the public hearing on the budget. This county notice also lists similar information for each taxing district within which a property lies (county, school district, special districts). If the City Council does not adopt a proposed budget and levy by September, state statute sets the proposed amounts equal to the current year budget and levy. From September to December each year, multiple work sessions are held with the City Council and city staff to consider the proposed budget in greater detail than is generally practical at regular City Council meetings. On the second Monday in December each year, the City Council holds a public hearing on the proposed budget and tax levy. Following the public hearing, the City Council approves the adopted budget and final tax levy. By state statute, the final levy can be less than the proposed levy, but it cannot be greater than the proposed levy. In the following year, the County collects the tax levy on behalf of the City, along with the property taxes levied by other taxing districts (county, school district, special districts). if the City Council does not approve an adopted budget and final levy by December 20th, state statute sets the adopted budget and final levy as equal to the proposed budget and levy. Budget Format The City of Columbia Heights proposed budget is prepared and distributed in a single volume format that includes narrative information highlighting department activities, objectives, and budget changes, in addition to listing dollar amounts for all budgeted revenues and expenses. This format is designed to provide the reader with a useful amount of explanation of the purpose of the various dollar amounts in the budget. For use during City Council work sessions, a separate detail budget workbook is also distributed for each of the ten functional areas with the budget. These workbooks include much of the same information as the single volume proposed budget, but also include additional detail on expected purchases included within the expense categories in the budget. Following approval of the adopted budget by the City Council, a single volume adopted budget is bound and distributed. This is substantially the same as the proposed budget, but it incorporates additional graphics and any changes to the proposed budget made by the City Council. This becomes the permanent record of the budget intended for general - purpose public use. It is also made available on the City's website. Budget Organization The City, like states and other local governments, uses fund accounting to demonstrate compliance with finance - related legal requirements. A fund is a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes. The legal level of budgetary control for the City is at the fund level. Any transfers between funds require authorization by the City Council. If a budgeted fund's annual expenses were to exceed the level authorized by the City Council in any one year, it would be a violation of a finance - related legal requirement. To further control expenses, each fund is subdivided into one or more departments. For example, within the Liquor Fund there is a separate department for each of the three municipal liquor stores operated by the City. Within each department, the major categories of expenses are as follows: Personal Services This includes all employee costs paid by the City, including salaries, over -time, PERA and FICA contributions, workers' compensation insurance, hospitalization and other benefits. Supplies This includes all consumable items such as office, computer, janitorial, and program supplies. Also included are minor equipment, uniforms, protective clothing, library materials, vehicle parts and fuel. Additionally, the cost of goods and services purchased for resale is included here, such as the Metropolitan Council sewer disposal charges and the cost of water purchased from the City of Minneapolis. Other Services & Charges This includes all items not included in the other expense categories. It covers such services as liability insurance, utilities, repair and maintenance costs, training and travel costs, telephone, postage, advertising, and contracted services such as legal fees, auditing fees, and other expert and professional contracts. Capital Outlay This includes all vehicles and equipment over $5,000 per item, major improvements to buildings, and major improvements to streets or other infrastructure. Equipment under $5,000 per item is generally classified under supplies. Contingencies and Transfers Contingencies are an allowance in the budget for expenses that are unknown or not estimable. Transfers are resources initially obtained by one fund that are budgeted for use by another fund. To help the reader understand the level of city services provided by the budget, and to promote management accountability, the City's various funds and departments are grouped within the budget documents based on their function. For example, all of the portions of the budget that provide police services are grouped together within a given section of the budget documents. The ten functional areas used to group funds and departments within the budget documents are as follows: Administration Liquor Community Development Police Finance Public Works Fire Recreation General Government (for items not included in other functions) Library 2 CITY OF COLUMBIA HEIGHTS CITY MANAGER'S 2019 BUDGET MESSAGE Recommendation The City Manager recommends that the City Council approve the proposed 2019 budget and levy. Key points supporting this recommendation are provided below. Financial Plan The City's five -year financial plan is designed to: • Provide for expected inflation in the cost of existing service levels. Increase service levels only for approved objectives or external mandates. • Reduce the use of state funding in the operating budgets, and increase its use over time in capital budgets. This strategy reduces the exposure of on -going basic city services to swings in state funding over which local residents have little control. It also gradually increases capital funding to sustainable levels for equipment, buildings and infrastructure. • Levy property taxes at the minimum level necessary to support the above strategies, while avoiding single -year spikes up or down in property taxes. Governmental Funds Revenue The proposed city gross property tax levy for 2019 is a 5.5% increase over 2018. The gross tax levy includes both the share of the tax levy paid by local taxpayers and the share subsidized by the metro area fiscal disparities program. The amount of the 2019 fiscal disparities subsidy could not be determined at the time this report was prepared. That subsidy amount will be known before the City Council makes its decision on the proposed 2019 tax levy however, and before proposed tax notices are mailed to each property owner. In 2018, the City and Economic Development Authority (EDA) began transitioning the use of the Housing and Redevelopment (special district) property tax levy from funding operating expenses, to funding redevelopment project costs. In 2018, $114,000 of the special district levy was repurposed in this manner. The remaining $133,000 of the $247,000 special district levy would also be repurposed for redevelopment project costs under the proposed 2019 budget. In order to fund the operating expenses paid in prior years by the special district levy, an increase in the City gross tax levy of $133,000 is included within the 5.5% tax increase mentioned above. If not for this change, the proposed increase in the City's 2019 gross tax levy would have otherwise been 4.3 %. In 2019, the City will receive $1,663,000 in state aid to local government (LGA). Under the five - year financial plan, only $450,000 of this LGA is allocated for use within the 2019 operating budget. $550,000 is allocated to the governmental buildings fund, and $500,000 is allocated to debt service on government buildings. The remaining $173,000 is allocated to various other capital purposes. If not for this LGA, these items would otherwise be paid for with property taxes. 3 CITY OF COLUMBIA HEIGHTS CITY MANAGER'S 2019 BUDGET MESSAGE Governmental Funds Operating Expenses The proposed increase to tax - supported operating expenses of the governmental funds for 2019 is 3.6% for both personnel and non - personnel combined. The largest element in this expense budget is a 3.5% cost -of- living allowance for unsettled labor agreements, including wages, as well as both voluntary and mandatory fringe benefits. Additionally, it includes: $26,000 for a state - mandated increase in annual employer retirement contributions on behalf of police officers and firefighters. $27,000 for on -going information systems costs that were deferred and charged to fund balance in prior years. Fund Balance of the General Fund With resolution 95 -40, the City Council established a target fund balance for the general fund of 45% of each following year's budget. Based on available data, city staff estimate that the proposed 2019 budget will result in a fund balance of $5,885,000 in the general fund at December 31, 2019. This will meet the 45% target, assuming that service levels and annual inflation for 2020 will be similar to 2019. Utility Funds Customer utility rates for water, sewer, storm water, and refuse, are set by resolutions adopted periodically by the City Council. The last such resolution, 2015 -98, set rates through 2019. After analyzing the financial condition of the utility funds, as well as the physical condition and capacity of the utility systems, city staff report the following: Water Fund The 2019 rate under resolution 2015 -98 is not sufficient to keep this fund financially sound for 2019 or beyond. Sewer Fund The 2019 rate under resolution 2015 -98 will probably be sufficient for 2019, but increases greater than the general rate of inflation will be required after 2019 for this fund to be sustainable. Storm Water Fund The 2019 rate under resolution 2015 -98 will probably be sufficient for 2019, but increases greater than the general rate of inflation may be required after 2019 for this fund to be sustainable, depending on the availability of intergovernmental grants for capital projects. Refuse Fund The 2019 rate under resolution 2015 -98 will clearly be sufficient for 2019. Barring any unforeseen legislative mandate, future rate increases equal to the general rate of inflation should be sufficient to keep this fund sustainable. 4 CITY OF COLUMBIA HEIGHTS CITY MANAGER'S 2019 BUDGET MESSAGE The 2019 rates under resolution 2015 -98 provide for a 3.5% rate increase over 2018, for each of the four utility funds. Based on the staff report above, the proposed 2019 budget retains that 3.5% rate increase for sewer, storm water, and refuse; but provides for a 6.5% increase in the water rate. In terms of dollar effect, the 2019 rates under resolution 2015 -98 increase the combined average quarterly residential bill by $8.22. The proposed 2019 budget, by further increasing the water rate, adds an additional $2.79 to the average quarterly residential bill. A key long -term issue within the utility funds is that past annual rate increases have been equal to or only slightly greater than the general rate of inflation. This practice has only been adequate for the operating costs of the utility funds. The cost of replacing the City's utility infrastructure has increased significantly more than the general rate of inflation, and will continue to do so, due to the age of the infrastructure. This issue has caused several infrastructure projects to be deferred beyond the date at which engineering standards advise replacement. Governmental Buildings Fund The 2017 city council goals report established the objective of completing a master plan for city hall. The architect's report on various options under that plan was completed and issued to the City Council in 2018. As a next step under this city council objective, the 2019 budget includes the most popular option under that plan. In broad terms, this option includes the following sources and uses: Existing New Fund Balance GO Bonds Construct new city hall next to Murzyn Hall $6,000,000 $2,000,000 Update Murzyn Hall and connect to city hall - 2,000,000 Financing costs - 100,000 Note, by adopting a budget with this item in it, the Council neither authorizes construction contracts, nor authorizes issuance of bonds. Those steps require significant separate Council actions and have specific additional public notice requirements. Further note, using this particular option as a "placeholder" in the 2019 budget, does not prevent the City Council from ultimately choosing some other option, or combination of options, under the master plan for city hall. In Conclusion As proposed, I judge that the 2019 budget and levy supports the vision and objectives of the City of Columbia Heights' 2017 goals report, and is feasible within the constraints of the City of Columbia Heights' five -year financial plan. As always, I want to thank the City Finance Director, Joe Kloiber, and the finance staff, for their dedication in delivering insightful analysis of the City's financial position, both as it is now and for the next five years. Walter R. Fehst, City Manager H Z p in W O a a 7 Y7H F O Z Lg00 W =ateop Cm Z � C Q � Z y O LL a+ u C LL W 0 LU O > •N .7 U a: w u a v u v>i Q a/ V ' 06 CL U C O j a > x w aJ J w > X as a U C Q L `O a O C7 O n � 1 O O o 0 0 0 0 O 00 00 00 00 O O O O O O O O O O C O O O CD O O 0 N N O O N m O N 00 O Ili 0 0 0 0 0 0 0 mrvnio$oo ' o� � 00 a N o O o 0 m v m n o m o g o o g N N ^ � cf oo W V' N 0 o cn O T fV m o pOp 0 pOO O. pOp O ci u0'1 tm0 V ID 0 0 0 0 vi N T ' pp 0 C 0 pp 0 0 0 C C1 t+1 0!1 I- N opopopopo d' N l0 S O O O O Ln ID pp .-i m � c IIf C V J � > 7 a N 43 = U J N W a� C OJ O x d c 0 w N CL s aw L C C m O C C C O It �C J tm 0a C O! aJ 0/ Q al u u u ¢ ¢ ¢ Lo m Vl � o N a n vi O 0o a .m-I CD Ln o 0 00 a m W vi C O OJ a Gl O y N O L aj X d + ro � w v u — tz-D Qj � C C U ¢ L N O u a u C � U y •V O/ w r ai E H a a n m o o � t N � E � = O C OJ N � x v N > Y N N � C ] u O C x N aj E a a cu a :° o C N Q u d c m w O O > aT O 3 n lu r oo 0 0 o 0 a a . cl o n w O ? U c + y O aJ N v E T d C O Y 3 a > m v O N o o v u > E V a > x = u 1 F0 Y _N 4 V al a O1 LA a > m owo= a Ym O Y f0 � V � � = 3 v ai F H a` io Z RESOLUTION 2018 -50 ADOPTING A PROPOSED BUDGET FOR THE YEAR 2019, SETTING THE PROPOSED CITY LEVY, APPROVING THE HRA LEVY, APPROVING A TAX RATE INCREASE, AND ESTABLISHING A BUDGET HEARING DATE FOR PROPERTY TAXES PAYABLE IN 2019. Now, in accordance with all ordinances and regulations of the City of Columbia Heights, the City Council of the City of Columbia Heights makes the following: ORDER OF COUNCIL Section A. The budget for the City of Columbia Heights for the year 2019 is hereby approved and adopted with appropriations for each of the funds listed below: Governmental Funds General Fund Planning & Inspections Economic Development Authority Admin. Cable Television Library After School Programs 21st Century Arts Downtown Parking Capital Project Funds Debt Service Funds Proprietary Funds Water Fund Sewer Fund Refuse Fund Storm Sewer Fund Liquor Fund Municipal Service Center Information Systems Use of Fund Balance Total Including Interfund Transfers Revenue 12,502,000 503,600 244,600 217,425 1,002,700 22,000 25,000 7,031,125 1,619,529 3,391,050 2,100,773 2,089,308 890,197 8,923,400 911,750 387,000 7,019,813 48,881,270 Expense 12,678,477 503,600 244,600 204,325 1,002,700 44,300 45,300 25,000 13,869,746 1,819,100 2,976,683 2,312,335 2,007,887 981,068 8,794,800 973,349 398,000 Capital Assets 452,500 27,500 43,600 Debt Principal Paid (Adv.) 186,000 53,400 73,600 245,000 48,881,270 523,600 558,000 Section B. The following sums of money are levied for the current year, collectable in 2019 upon the taxable property in said City of Columbia Heights, for the following purposes: Estimated General Fund Levy 10,071,000 Estimated Library Levy 955,095 Estimated EDA Fund Levy 242,100 Total 11, 268,195 7 City of Columbia Heights - Council Resolution 2018 -50 Pa e 2 Section C. The City Council of the City of Columbia Heights hereby approves the Housing and Redevelopment Authority Tax Levy for the fiscal year 2019 in the amount of $ 247,000 BE IT FURTHER RESOLVED: That the public budget hearing is scheduled for December 10, 2018 at approximately 7:00 p.m. in the City Council Chambers. BE IT FURTHER RESOLVED: That the County Auditor is authorized to fix a property tax rate for taxes payable in the year 2019 that is higher than the tax rate calculated for the City for taxes levied in 2017 collectable in 2018. BE IT FURTHER RESOLVED: That the City has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2009A in the amount of $25,000 and that the County Auditor is authorized to cancel $25,000 of the related Bond Levy for taxes payable in 2019, leaving a balance of $205,329 to be levied for taxes payable in 2019 for Series 2009A. BE IT FURTHER RESOLVED: That the City has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2015A in the amount of $275,000 and that the County Auditor is authorized to cancel $275,000 of the related Bond Levy for taxes payable in 2019, leaving a balance of $206,254 to be levied for taxes payable in 2019 for Series 2015A. BE IT FURTHER RESOLVED: That the City has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2017A in the amount of $335,344 and that the County Auditor is authorized to cancel $335,344 of the related Bond Levy for taxes payable in 2019, leaving a balance of $0 to be levied for taxes payable in 2019 for Series 2017A. BE IT FURTHER RESOLVED: That the City has adequate fund balances and reserves to pay bond principal and interest payments on General Obligation Bond Series 2017B in the amount of $295,000 and that the County Auditor is authorized to cancel $295,000 of the related Bond Levy for taxes payable in 2019, leaving a balance of $268,446 to be levied for taxes payable in 2019 for Series 2017B. The Finance Director/Treasurer is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Approved this Offered By: Seconded By: Roll Call: Ayes: Nays: Katie Bruno City Clerk/Council Secretary day of Mayor Donna Schmitt DRAFT 8 N t 0 U 0 it u N d x 01 M o � N d C CL o ° i N a U 0 ate, v 2 N v Y O 0l 7 U G v W u v N v U 0 O 2 v 7 0 N Q Qj Qj 7 U G O G 0 N N 0 N v L u v N N Ln 0 0 Ln cn p cn O4 fln, OJ O O .--I O CD N O a1 N 0 N l0 a) cn %D � O e-I rl rl O o rn m m m �: 00 rn o MNN ° m Ln m ooi ai o o a ai rr a O O^ m m m N rn N � lN0 o O r-i m a cn X W O N Or�-I n co m th O p a 00 N V1 -t an N 00 a) 00 m n f\ M Q 00 a1 O O' V a�1 N V1 n 00 V1 Ln 01 O N n r- O N N 0 C emi N fmn Vl V1 N N 00 l0 V1 M N Q 00 cn O O O 0c0 O O 0000 li O O N m O O M m r\ n O N Ln a0+ m rl N M M N fn rl Q O kD N 000 cn V1 ) ln0 N N m Q 00 O' O o O w O W w O at r --* 00 f- rl rl Vj M N 00 W M m 1-1 fl- fl- cn a1 Q 00 ci a1 a1 Op co O 00 N -e rl a -CF V O O r- cm 0 N n m 00 ^O V1 Ln Q r\ 06 Q1 a1 V, r1 m Ln r1 Ln r1 0 2e y art' On O n O 00 .m-f m ' cn CL rn O ^ °�° w m N M Ln tk0 EMI 00 Q r. 00 a1 6 C) r-I — r-il N 0) r-I �l Lo n m am 0` 00 n r-Ii W n co f` � .4 r\ a1 la lD r1 fy1 N O Ln 00 N LD Ln C14 N Ln Q r- 00 m Qi 0 N O Ln N 01 n r 00 N W 00 00 O AO M a1 rl c-I N O G 00 M a1 N M Ln O rl' 01 n'1 O n O N n N O O ('1 Q r\ 00 a-I (7 00 a--1 T 01 �, h V m u c a+ > m of ai d u O m m y N v a` a in d O ?� o d m o a o x E y .� oo ,� ° a+ v p c °' a c U. m a - ~ � v v r � O d O 7 O O e00 LL O p = +' f0 y '� m _ y [' N 0J 00 w O ' E Q C a a a+ 0J W J L d W C9 Vl C Q U a U 0 ate, v 2 N v Y O 0l 7 U G v W u v N v U 0 O 2 v 7 0 N Q Qj Qj 7 U G O G 0 N N 0 N v L u v N N City of Columbia Heights, Minnesota Property Taxes on Homestead Properties with Various Values 10 Local Taxable Market Value Share Only $$ % After Exclusions City Tax Change Change PAYABLE 2016 117,431 878.64 63.62 7.8% PAYABLE 2017 123,862 849.29 -29.35 -3.3% PAYABLE 2018 151,657 1,026.18 176.89 20.8% PAYABLE 2016 112,308 840.47 95.53 12.8% PAYABLE 2017 122,554 840.36 -0.11 0.0% PAYABLE 2018 133,345 901.68 61.32 7.3% PAYABLE 2016 130,293 975.16 95.69 10.9% PAYABLE 2017 140,648 963.76 -11.40 -1.2% PAYABLE 2018 167,462 1,133.05 169.29 17.6% PAYABLE 2016 131,492 984.16 100.44 11.4% PAYABLE 2017 136,724 937.02 -47.14 -4.8% PAYABLE 2018 149,150 1,009.27 72.25 7.7% PAYABLE 2016 132,800 993.89 73.34 8.0% PAYABLE 2017 145,771 999.39 5.50 0.6% PAYABLE 2018 166,263 1,124.95 125.56 12.6% PAYABLE 2016 148,801 1,113.62 87.57 8.5% PAYABLE 2017 158,472 1,086.47 -27.15 -2.4% PAYABLE 2018 183,507 1,241.27 154.80 14.2% PAYABLE 2016 158,851 1,189.23 76.07 6.8% PAYABLE 2017 178,907 1,226.29 37.06 3.1% PAYABLE 2018 197,764 1,338.02 111.73 9.1% PAYABLE 2016 177,381 1,327.68 80.01 6.4% PAYABLE 2017 197,110 1,351.05 23.37 1.8% PAYABLE 2018 213,787 1,446.25 95.20 7.0% PAYABLE 2016 201,361 1,507.29 89.66 6.3% PAYABLE 2017 212,261 1,455.24 -52.05 -3.5% PAYABLE 2018 228,938 1,548.38 93.14 6.4% PAYABLE 2016 201,906 1,511.03 76.40 5.3% PAYABLE 2017 191,442 1,311.95 - 199.08 -13.2% PAYABLE 2018 236,350 1,599.14 287.19 21.9% 10 N C O IA ra *' u s � GJ E m 4J O cn O 'I U N N `~ O O L u N_ 11 o ri In in Ln * O 00 ri -,t r, -* a O o0 Ln O O O r-I I� � lD R* 00 N lD r-I M 00 1* N M > V 1 I, Ln lD r-I LD r-I Ln N 11'1 r- 00 O I- Ln 111 -' r-I 4J O lD Ln M I� c r1 r. 00 N lD N cr ri � 00 � 4-J Q1 lD Q1 O Ln q* N ri O N M m Ln O M M M u lD I- M r-I LD 111 N w m M r-I Q1 r- O lD E "a ri M Ln lD 06 O N ZF L6 6 ri N � l!7 0o Ql :3 0J — — `-' — — r-I r-I r-I ri r-I N N N N N N v U Of — — — v — — — —i O r-I Rt qe w m lD 00 M M M r N Rt 00 I.� r-I O O O r-I Ln LD r-I 00 M qe R* q* 00 00 w n r-I ' I, 00 ri Ln Ln � lD M rl ri ri F. I- Q1 111 O cv O W 00 00 M 1� W M N ri R* � Ln I- ri N M w c U Q1 W N r-I Rt 00 00 01 Ql lD lD Ln W Mt M O Ql C J lD O w I� Ln 00 w e-i r-I M M 00 I- r- r- lD Ln a 0 ri ri ri rl rl ri N N N N r1 ri rl ri r1 ri M M N Q1 m I- q:t r- Ln O O O w r-I m L!1 w N N N N r-I O w Ln O M m 00 00 N R* M 111 R* ri Q M w Ln N 00 I� 00 m w m ri ri ri Ln 111 M I- M Ql N O ri Ln rl N Lr1 l0 I� Lr Lf1 -; c-I I� -6 L17 M fD +m+ L(1 w Ql M r-I I� Ir- lD c.6 Ql Ol O Ql ri N Ln lD 0 N Ln ri w Ln n M Ln O O 00 o0 Rt R4 Ln Ln lD W D M N N r-I r-I r-I ri r-1 r-I ri ri c-I ri c-I ri c-I a N Q1 N N M q* 00 Ln O J N N r-I N r% r� q* Ln r-I 4 1 co ^, W �„/ M M M 1dA 1_ M ri Ln Q7 � 00 C 1 H -p n� r- N n M ri N r-I N Y E u �p O O Ql M I- I- R' O m O O O O w r1 m Ln w N C Ql Ql O rZ 00 Ql 00 Ln 00 00 00 00 r- rr Ln Rt r-I r 0J 01 N N Ln N a) r1 ri r-I ri ri Ln 111 M r- M E r-I Ln M 00 00 00 r-I N Ln 111 Ln Ln qt r-I I- lD Ln M U C Ln Ln O Ln N M N N Q1 Q1 Q1 01 O 01 r-I N Ln w O a W Ol W O O N 01 r-I 00 00 00 00 wt Re Ln Ln 'Z lD > N rl ri c-I ri rl e--I ri r-I ri c-I ri rl O >` M M Ln tD I- 00 Q) o r1 N M q* 111 w I- 00 Ql O O O O O o o O r-I r-I r-I ri r-I r-I r-I ri ri rl O O O O O O O O O O O O O O O o 0 0 C i N N N N N N N N N N N N N N N N N N C O u 7 0J > 4-J h ctof0 0J J M o N -0 "O 'O 'O 'a "O 'O 'O "O 'O -0 'O "O "a 'a a L aaaaaaaa'aaa'aa'aa ai L U U U U U U U U U U W a s< u U a U a U a U a a a a a a a a a a a u. 11 City of Columbia Heights Budget 2019 Tax Supported Operating Revenue Library Taxes 813,999 845,111 919,244 City Manager's Change from Licenses and Permits Actual Actual Adopted Proposed 2018 to General Fund 2016 2017 2018 2019 2019 Proposed Taxes 8,751,485 8,981,750 9,481,000 10,071,000 590,000 Licenses and Permits 240,722 234,162 237,800 238,300 500 Intergovernmental Revenue 986,480 992,733 946,800 930,300 - 16,500 Charges for Services 579,847 592,356 569,000 599,500 30,500 Fines and Forfeits 92,419 80,948 96,000 86,000 - 10,000 Miscellaneous 89,630 96,226 99,900 104,500 4,600 Sales and Related Charges -10 21 - - - Transfers and Non Rev Receipts 445,854 474,417 473,500 472,400 -1,100 Total Revenue 11,186,425 11,452,613 11,904,000 12,502,000 598,000 Library Taxes 813,999 845,111 919,244 955,095 35,851 Licenses and Permits _ Intergovernmental Revenue - Intergovernmental Revenue - _ - 18,201 530 Charges for Current Services 12,190 13,774 9,400 14,105 4,705 Fines and Forfeits 12,226 12,049 13,000 12,500 -500 Miscellaneous 3,200 11,419 - 10,000 10,000 Sales and Related Charges 685 -1 - - 300,490 Transfers and Non Rev Receipts 0 11,000 11,000 11,000 - Total Revenue 842,300 893,353 952,644 1,002,700 50,056 Economic Development Auth. EDA and HRA Levy 278,789 291,488 444,692 242,100 - 202,592 Licenses and Permits _ Intergovernmental Revenue - _ _ Charges for Current Services 18,201 530 1,550 500 -1,050 Fines and Forfeits _ _ Miscellaneous 3,500 3,900 2,000 2,000 Sales and Related Charges - - _ - Transfers and Non Rev Receipts - - _ - Total Revenue 300,490 295,918 448,242 244,600 - 203,642 12 City of Columbia Heights, Minnesota Tax Supported Operating Expenditures 2016-2019 Economic Development Authority City Manager's Incr /Decr 257,602 308,743 Actual Actual Adopted Proposed from 308,743 448,242 2016 2017 2018 2019 2018 3eneral Fund Library 41110 Mayor - Council 155,215 133,630 156,938 174,100 17,162 41320 City Manager 448,210 462,354 567,724 588,620 20,896 41410 City Clerk 95,628 62,265 111,778 65,820 - 45,958 41510 Finance 786,465 842,488 891,800 922,300 30,500 41550 Assessing 123,814 124,276 126,012 126,265 253 41610 Legal Services 191,958 176,141 176,300 181,400 5,100 41940 City Hall 125,039 143,411 154,000 157,700 3,700 42100 Police 3,907,276 4,282,871 4,662,679 4,837,800 175,121 42200 Fire 1,319,214 1,409,822 1,429,857 1,355,800 - 74,057 42300 Property Inspections 176,664 191,258 208,172 406,800 198,628 43100 Engineering 507,880 490,051 403,165 383,830 - 19,335 43121 Streets 781,010 779,394 892,169 903,834 11,665 43160 Street Lighting 143,907 148,536 160,832 169,601 8,769 43170 Traffic Signs & Signals 95,661 81,166 98,312 106,797 8,485 45000 Recreation Administration 209,588 220,766 229,218 238,652 9,434 45001 Youth Athletics 31,316 36,903 43,232 51,611 8,379 45003 Adult Athletics 27,366 28,971 30,321 38,211 7,890 15004 Youth Enrichment 44,325 63,307 81,264 88,850 7,586 +5005 Travel Athletics 21,913 24,223 38,204 44,286 6,082 45030 Trips & Outings 37,191 39,456 39,427 40,070 643 45040 Senior Citizens 86,365 88,399 91,606 93,737 2,131 45050 Recognition /Special Events 39,992 41,917 40,900 42,000 1,100 45129 Murzyn Hall 187,399 197,425 256,052 200,632 - 55,420 45130 Hylander Center 71,260 67,541 87,793 89,000 1,207 45200 Parks 903,820 906,999 959,042 993,020 33,978 46102 Urban Forestry 146,500 144,353 172,641 207,741 35,100 49200 Contingencies - 7,995 35,000 35,000 - 49300 Transfers 88,917 - 1,400,000 135,000 - 1,265,000 Total General Fund 10,753,894 11,195,918 13,544,438 12,678,477 - 865,961 Economic Development Authority 46314 Econ Development Authority 257,602 308,743 448,242 244,600 - 203,642 Total EDA 257,602 308,743 448,242 244,600 - 203,642 Library 45500 Library 783,812 846,606 952,644 1,002,700 50,056 Total Library 783,812 846,606 952,644 1,002,700 50,056 13 - This page intentionally left blank - 14 City of Columbia Heights, Minnesota BUDGET 2019 Summary by Fund Revenues 101 General Fund 201 Planning & Inspections 204 EDA 212 State Aid Maintenance 225 Cable Television 226 Special Projects 228 Downtown Parking 240 Library 261 After School Programs 262 21st Century Arts 272 Public Safety Grants - Other 315 Sull- Shores: TX GO Bonds 2008A 341 G.O. Street Rehab Bonds 2007A 343 GO Public Safety Ctr. Bonds 20088 344 GO Public Facilities Bonds 2009A 345 GO Improv /Rev Bonds 2013 346 GO Library 2015 347 GO Public Safety Ctr. Bonds 20178 371 TI F T4: 4747 Ce ntra 1 372 Huset Park Area TIF (T6) 373 EDATIF Revenue Bonds 2007 376 Tax Increment Bonds 385 Multi -Use Redevelopment 389 R8: Transition Block 402 Total State Aid Construction 408 EDA Redevelopment Project FD 411 Capital Improvements -Gen Govt Bldg 412 Capital Improvements Parks 430 Infrastructure Fund 431 Cap Equip Replacement - General Fund 432 Cap Equip Replacement - Sewer 433 Cap Equip Replacement -Water 434 Cap Equip Replacement - Garage 437 Cap Equip Replacement- Information Sytems 438 Cap Equip Replacement -Storm Sewer 439 Cap Equip Replacement - Fire 601 Water Utility 602 Sewer Utility 603 Refuse Fund 604 Storm Sewer Fund 609 Liquor 631 Water Fund Debt Service 632 Sewer Fund Debt Service 634 Storm Sewer Debt Service 639 Liquor Fund Debt Service 651 Water Construction Fund 652 Sewer Construction Fund 653 Storm Sewer Construction Fund 701 Central Garage 705 Building Maintenance 720 Information Systems Total Revenue Actual Actual Adopted CM Proposed 2016 2017 2018 2019 11,186,425 11,452,613 11,904,000 12,502,000 491,822 535,468 469,682 503,600 300,490 295,918 448,242 244,600 286,091 181,461 192,250 192,625 271,601 252,202 227,400 217,425 482,917 276,028 25,000 - - - 25,000 842,300 893,353 952,644 1,002,700 20,630 21,754 22,000 22,000 - 1,549 145,849 119,773 - - 105,916 106,942 105,600 105,900 1,201 602,845 628,162 - - 310,236 308,110 251,800 219,329 365,333 78,765 35,100 32,000 473,246 477,706 464,967 456,754 - 8,668,700 563,053 518,946 183,304 163,551 81,000 82,000 2,988,952 394,176 332,000 204,600 2,415,516 - - 10,662 31,440 26,628 28,251 44,402 48,693 - - 943,606 1,943,916 300,000 1,600,000 - 1,028,945 - 250,000 339,385 864,000 1,683,000 4,693,000 274,908 435,251 391,250 77,500 286,125 252,604 110,000 112,000 290,448 280,600 256,000 106,000 28,200 28,700 27,000 32,000 103,434 103,929 106,000 107,000 4,500 4,600 4,400 4,500 3,900 4,500 2,000 2,000 5,100 21,282 5,000 10,000 100 - - - 3,470,648 3,253,287 3,058,364 3,205,550 2,421,653 2,110,349 1,974,310 1,989,773 1,979,859 2,087,582 2,067,228 2,089,308 1,549,436 525,141 444,275 455,097 8,468,095 9,142,558 8,675,000 8,619,000 268,550 163,600 145,200 78,500 40,050 41,100 62,000 79,000 265,558 93,600 44,100 63,100 392,321 390,355 268,200 304,400 208 2,516 - - 207,566 203,825 3,886 2,000 - 362,000 578,630 681,680 682,485 657,500 250,317 290,100 205,500 249,750 337,400 522,993 335,000 385,000 44,070,249 49,443,631 36.921,050 41,861,457 15 City of Columbia Heights, Minnesota BUDGET 2019 Summary by Fund 16 Actual Actual Adopted CM Proposed 2016 2017 2018 2019 Expenses General Fund 101.41110 Mayor - Council 155,215 133,630 156,938 174,100 101.41320 City Manager 448,210 462,354 567,724 588,620 101.41410 City Clerk 95,628 62,265 111,778 65,820 101.41510 Finance 786,465 842,488 891,800 922,300 101.41550 Assessing 123,814 124,276 126,012 126,265 101.41610 Legal Services 191,958 176,141 176,300 181,400 101.41940 City Hall 125,039 143,411 154,000 157,700 101.42100 Police 3,907,276 4,282,871 4,662,679 4,837,800 101.42200 Fire 1,319,214 1,409,822 1,429,857 1,355,800 101.42300 Properly Inspections 176,664 191,258 208,172 406,800 101.43100 Engineering 507,880 490,051 403,165 383,830 101.43121 Streets 781,010 779,394 892,169 903,834 101.43160 Street Lighting 143,907 148,536 160,832 169,601 101.43170 Traffic Signs & Signals 95,661 81,166 98,312 106,797 101.45000 Recreation Administration 209,588 220,766 229,218 238,652 101.45001 Youth Athletics 31,316 36,903 43,232 51,611 101.45003 Adult Athletics 27,366 28,971 30,321 38,211 101.45004 Youth Enrichment 44,325 63,307 81,264 88,850 101.45005 Travel Athletics 21,913 24,223 38,204 44,286 101.45030 Trips & Outings 37,191 39,456 39,427 40,070 101.45040 Senior Citizens 86,365 88,399 91,606 93,737 101.45050 Recognition /Special Events 39,992 41,917 40,900 42,000 101.45129 Murzyn Hall 187,399 197,425 256,052 200,632 101.45130 Hylander Center 71,260 67,541 87,793 89,000 101.45200 Parks 903,820 906,999 959,042 993,020 101.46102 Urban Forestry 146,500 144,353 172,641 207,741 101.49200 Contingencies - 7,995 35,000 35,000 101.49300 Transfers 88,917 - 1,400,000 135,000 101 Total 10,753,894 11,195,918 13,544,438 12,678,477 16 City of Columbia Heights, Minnesota BUDGET 2019 Summary by Fund Actual Actual Adopted CM Proposed 2016 2017 2018 2019 Planning & Inspections 201.42400 Planning & Inspections 373,794 460,714 469,682 503,600 201.46310 Community Development Adm 900 804 Economic Development Authority 204.46314 Econ Development Authority 257,602 308,743 448,242 244,600 State Aid Maintenance 212.43190 State Aid Maintenance 205,186 660,631 230,347 246,891 212.43191 State Aid Gen'I Construction - 130,000 95,000 Cable Television 225.49844 Cable Television 149,814 89,313 190,331 204,325 Special Projects 226.46317 Downtown Parking 17,233 14,133 25,000 226.49846 Special Projects - 27,263 70,000 - Downtown Parking 228.46317 Downtown Parking - - 25,000 Library 240.45500 Library 783,812 846,606 952,644 1,002,700 After School Programs 261.45029 Program Revenue Expended 53,920 38,292 43,562 44,300 21st Century Arts 262.45020 2017 - 20 Contract - 1,549 - 45,300 Public Safety Grant - Other 272.42202 Safer Grant 2015 - 2017 145,849 119,773 - - Bonds 315.47000 Sull- Shores: TX GO Bonds 2008A 99,237 100,808 97,800 98,900 3 ^' 47000 GO Street Rehab Bonds 113,254 13,262 7000 GO Public Safety Ctr. Bonds 2008B 622,309 439,524 622,300 ��,.47000 G.O. Public Facilities Bonds 298,573 292,649 297,900 256,100 345.47000 GO Improv /Rev Bonds 2013 121,421 589,838 51,500 50,900 346.47000 GO Library 2013 203,254 459,363 459,100 461,000 347.47000 GO Public Safety Ctr. Bonds 2017B - 8,668,160 481,720 532,200 TIF Districts 371.47000 TIF T4: 4747 Central 83,586 90,402 85,800 88,100 372.47000 Huset Park Area TIF (T6) 2,583,748 469,946 332,000 331,900 373.47000 EDA TIF Revenue Bonds 2007 2,683,805 376.46800 TIF Districts - 65,445 32,591 376.47000 Tax Increment Bonds 930 18,086 385.47000 Multi -Use Redevelopment Bonds 1,700 5,206 - 389.47000 R8: Transition Block 41,252 46,267 - 402 Total State Aid Construction 477,525 403,622 450,000 1,570,000 408.46414 EDA Redevelopment Project FD - 599,144 - 1,957,264 250,000 Capital Improvements -Gen Govt Bldg 411.41940 City Hall 30,503 2,955 - 10,100,000 411.42100 Police 1,200 - 19,000 - 411.42200 Fire 1,200 411.45129 Murzyn Hall - - 411.45500 Library 44,066 411.49950 Central Garage - 75,000 Capital Improvements Parks 412.45200 Parks 42,030 59,396 25,000 18,000 Infrastructure Fund 430.46323 Capital Improvement Expense 119,173 408 278,366 573,005 Cap Equip Replacement - General Fund '1940 General Government Buildings 28,000 - - ,2100 Police 158,570 134,534 137,946 311,700 431.42200 Fire 53,018 117,326 315,000 295,000 431.42400 Protective Inspection - 431.43100 Engineering - 10,995 25,000 - 431.43121 Streets 16,950 162,986 - 228,000 17 City of Columbia Heights, Minnesota BUDGET 2019 Summary by Fund Actual Actual 2016 2017 431.45000 Recreation Administration 431.45050 Recognition /Special Events 431.45200 Parks 431.46102 Tree Trimming 431.46310 Community Development Adm Cap Equip Replacement - Sewer 432.49499 Non - Operating Cap Equip Replacement - Water 433.49449 Non - Operating Cap Equip Replacement - Garage 434.49950 Central Garage Cap Equip Replacement - IS 437.49980 Information Systems 437.41510 Finance Cap Equip Replacement 438.49699 Storm Sewer Non - Operating Cap Equip Replacement -Fire 439.42200 Fire Water Utility 601.49400 Source of Supply 601.49430 Distribution 601.49440 Administration & General 601.49449 Non - Operating Sewer Utility 602.49450 Collections 602.49480 Disposal 602.49490 Administration & General 602.49499 Non - Operating Refuse Fund 603.49510 Refuse Disposal 603.49520 Collection & Disposal 603.49530 Recycling 603.49540 Hazardous Waste Storm Sewer Fund 604.49650 Collections 604.49690 Administration & General 604.49699 Non - Operating Liquor 609.49791 Liquor Store #1 609.49792 Liquor Store #2 609.49793 Liquor Store #3 609.49794 Liquor Non - Operating Water Fund Debt Service 631.47000 Water Fund Bonds Sewer Fund Debt Service 632.47000 Bonds 632.49449 Sewer Fund Debt Service Storm Sewer Debt Service 634.47000 Storm Sewer Bonds 639.47000 Liquor Debt Service Water Construction Fund 651.49449 Non - Operating Sewer Construction Fund 652.49499 Non - Operating Storm Sewer Construction 653.49699 Storm Sewer Construction Fund 44,109 61,845 141,845 13,263 17,886 1,426,460 997,476 172,588 268,000 505,923 974,360 171,635 40,000 1,641,239 153,824 128,410 10,683 308,029 1,170 133,000 3,818,576 3,074,874 1,185,148 550,818 22,257 5,543 132,288 12,901 191,807 439,054 522,951 1,447,579 18 12,699 35,017 1,546,326 987,990 164,817 162,000 663,340 1,053,318 164,717 240,225 1,674,172 283,199 141,816 12,816 370,451 906 93,643 3,710,236 3,026,788 1,167,002 549,200 19,312 6,675 10,604 161,754 11,434 Adopted 2018 110,000 5,000 1,386,733 1,108,229 146,400 145,000 677,814 1,101,725 146,400 62,000 1,929,000 115,924 137,155 13,801 386,484 1,100 44,000 3,888,700 3,148,000 1,274,100 415,000 17,100 9,600 9,500 77,200 65,000 250,000 165,000 CM Proposed 2019 65,000 42,150 5,000 1,575,000 1,095,383 148,800 78,000 772,135 1,133,800 148,800 79,000 1,703,400 118,647 170,598 15,242 402,118 1,200 63,650 3,870,100 3,159,400 1,246,500 449,400 14,500 8,600 9,100 69,400 65,000 170,000 505,000 City of Columbia Heights, Minnesota BUDGET 2019 Summary by Fund Actual Actual Adopted CM Proposed 2016 2017 2018 2019 Central Garage 701.49950 Central Garage 575,147 590,699 723,060 746,754 Building Maintenance 705.49970 Building Maintenance 243,535 176,574 205,448 226,595 Information Systems 720.49980 Information Systems 355,511 344,835 382,575 393,000 Total Expense 39,620,386 41,379,427 37.929.726 48,881,270 19 v U � N m U m N m 0\1 c O n N 0 m d 'O ++ N C 0 ri O Z LL U O O 0 � vco ao u -0 +� C C 01 Z LL c 7 LL rn rn LD m rl ri m V) N O N c r0 Z Ln c � r, m r� V) aL -1 r-I Ln m m C N c O (U Ln w X oo t OD Co .0 M E LU d 00 N LL 0 p L m r-I E- N m q* � 4! 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Q J c H E W H W tl LJ 4J U V = U U V C > to 0: to C - ii W — corm a Z* mn m r-M m m m m dam' Ln ��n uNi uui Ln `^^ 21 - This page intentionally left blank - 22 S&P Global Ratings RatingsDirect @ Summary: Columbia Heights, Minnesota; General Obligation Primary Credit Analyst: Cora Bruemmer, Chicago (312) 233 -7099; cora.bruemmer @spglobal.com Secondary Contact: Jessica Akey, Chicago 312 - 233 -7068; jessica.akey @spglobal.com Table Of Contents Rationale Outlook Related Research WWW. STANDARDANDPOORS .COM /RATINGSDIRECT JUNE 8, 2017 1 23 1865032 1302253518 Summary: Columbia Heights, Minnesota; General Obligation Profile Credit US$8.75 mil GO rfdg bnds ser 2017B dtd 07/06/2017 due 02/01/2038 Long Term Rating AA /Stable US$3.375 mil GO rfdg bnds ser 2017A dtd 07/06/2017 due 02/01/2029 Long Term Rating Rationale AA /Stable New New S &P Global Ratings assigned its 'AA' long -term rating to Columbia Heights, Minn.'s series 2017A general obligation (GO) refunding bonds and series 2017B GO refunding bonds. At the same time, we affirmed our 'AA' long -term rating on the city's existing GO bonds. The outlook on all ratings is stable. The city's unlimited -tax, full faith and credit GO pledge secures the series 2017A and B bonds. The city has outstanding GO debt that is additionally secured by various revenue sources, but all existing GO debt is rated to the GO pledge. The 'AA' rating reflects our assessment of the city's: • Adequate economy, with access to a broad and diverse metropolitan statistical area (MSA); • Strong management, with "good" financial policies and practices under our Financial Management Assessment (FMA) methodology; • Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level in fiscal 2016; • Very strong budgetary flexibility, with a high available fund balance in fiscal 2016 of 141% of operating expenditures; • Very strong liquidity, with total government available cash at 2.Ox total governmental fund expenditures and 20.8x governmental debt service, and access to external liquidity we consider strong; • Weak debt and contingent liability position, with debt service carrying charges at 9.5% of expenditures and net direct debt that is 126.2% of total governmental fund revenue; and • Strong institutional framework score. Adequate economy We consider Columbia Heights' economy adequate. The city, with an estimated population of 20,025, is in Anoka County on the northern border of Minneapolis, in the Minneapolis -St. Paul- Bloomington MSA, which we consider to be broad and diverse. It has a projected per capita effective buying income of 88.3% of the national level and per capita market value of $61,366. Overall, market value grew by 6.7% over the past year to $1.2 billion in 2016. The county unemployment rate was 3.8% in 2016. Over the last few years, the city's assessed and market values have increased steadily, mostly due to recovering home prices following the recession. It is likely that this upward trend will continue as housing prices continue to strengthen W W W. STANDARDANDPOORS .COM /RATINGSDIRECT 24 JUNE 8, 2017 2 1865032 1302253518 Summary: Columbia Heights, Minnesota; General Obligation and recent redevelopment projects come on the tax rolls. While the city is nearly fully built out, management reports that a new 200 -unit senior housing building was recently completed and there is potential for a second similar development. A new Hy -Vee grocery store is in the process of redeveloping the site of a former grocery building. Local employment conditions are favorable, with residents having access to a broad range of opportunities in the Twin Cities MSA. The city is mostly residential (83% of net tax capacity), with a smaller commercial and industrial component (15 %). We consider the tax base diverse with the top ten taxpayers comprising only 8% of net tax capacity. The majority of the top taxpayers are larger apartment buildings. Given the city's recent growth and the stabilizing influence of the Minneapolis -St. Paul MSA economy, we believe the city's economy score will remain adequate over the next few years. Strong management We view the city's management as strong, with "good" financial policies and practices under our FMA methodology, indicating financial practices exist in most areas, but that governance officials might not formalize or monitor all of them on a regular basis. The city consults outside sources and uses three years of historical trends in its budget development process. Management provides monthly budget -to- actual reports to the city council. The city updates its five -year, long -term financial plan annually. It updates its master capital plan every few years and typically projects at least three years out from the current year. Additionally, it maintains 20 -year projections for its street projects and 10 -year projections for its non - street projects. The city does not have its own investment policy but follows state guidelines and reports on investment holdings and earnings annually. It does not have a debt management policy. The city has a formal general fund reserve policy to maintain 45% of next year's budget in reserve. Strong budgetary performance Columbia Heights' budgetary performance is strong, in our opinion. The city had operating surpluses of 4.0% of expenditures in the general fund and 11.2% across all governmental funds in fiscal 2016. We have adjusted revenues and expenditures to account for recurring transfers, one -time capital projects, and bond refundings. The city has a practice of budgeting for break -even operations, but is substantially outperforming its budget. The positive variances are a result of conservative budgeting of expenditures as well as not budgeting for excess tax- increment financing (TIF) revenues. The city is phasing in a plan to reduce its reliance on local government aid (LGA) for general operations. Each year, it has been increasing the amount of LGA it transfers out of the general fund to capital project funds for one -time capital projects. In 2016, the city began recognizing a portion of the LGA revenue in the capital projects fund rather than making the transfers. We expect the LGA revenues to decrease in the general fund and increase in the capital projects fund over time, according to the city's plan. After adjustments, fiscal 2016 closed with a $368,000 general fund surplus, mostly due to excess TIF revenue and lower expenditures related to vacant positions and lower fuel costs. Across total governmental funds, the city also posted positive operations after adjustments for one -time capital expenditures related to the library project and bond refundings_ The fiscal 2017 budget calls for break -even operations. Year -to -date, management reports that revenues and expenditures are tracking on or slightly better than budget. Given the city's history of strong performance, we expect it will likely close the year better than budget. W W W . STANDARDANDPOORS. COM /RATINGSDIRECT 25 JUNE 8, 2017 3 1865032 1302253518 Summary: Columbia Heights, Minnesota; General Obligation Local taxes accounted for 78% of general fund revenues in fiscal 2016, followed by intergovernmental revenue (9 %) and charges for services (5 %). Given the city's history of general fund surpluses, we expect that after adjustments for one -time expenditures, performance will likely remain strong over the next two years. Very strong budgetary flexibility Columbia Heights' budgetary flexibility is very strong, in our view, with a high available fund balance in fiscal 2016 of 141% of operating expenditures, or $15.1 million. We expect the available fund balance to remain above 75% of expenditures for the current and next fiscal years, which we view as a positive credit factor. The available fund balance includes $7.3 million (68.2% of expenditures) in the general fund and $7.8 million (73 %) that is outside the general fund but legally available for operations. In addition to the general fund, we have included the cash available in the city's liquor enterprise and the committed balances in its capital improvement general government building, capital equipment replacement general government, and capital improvement development funds. These fund balances have grown from a build -up of transfers from general fund surpluses and are free and available for general operations. The city has a formal general fund reserve policy to maintain 45% of next year's budget in reserve and funds above that amount are transferred to capital projects funds. The city does not have any plans to spend down its general or capital projects fund balances, so we expect budgetary flexibility to remain very strong over the next two years. Very strong liquidity In our opinion, Columbia Heights' liquidity is very strong, with total government available cash at 2.Ox total governmental fund expenditures and 20.8x governmental debt service in 2016. In our view, the city has strong access to external liquidity if necessary. We have based our assessment of the city's access to external liquidity on its recent history of GO debt issuances and healthy credit quality. We have also confirmed that it does not hold any privately placed debt or direct - purchase agreements that could pose a significant risk to its liquidity. Furthermore, we note that the city is not investing its funds aggressively as it holds a combination of investments in U.S. agencies, negotiable certificates of deposit, and money market mutual funds. Weak debt and contingent liability profile In our view, Columbia Heights' debt and contingent liability profile is weak. Total governmental fund debt service is 9.5% of total governmental fund expenditures, and net direct debt is 126.2% of total governmental fund revenue. The city does not have any additional debt plans in the next two years. Columbia Heights' combined required pension and actual other postemployment benefit (OPEB) contributions totaled 5.6% of total governmental fund expenditures in 2016. The city made its full annual required pension contribution in 2016. It participates in cost - sharing multiemployer defined - benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund ( PEPFF). The city's annual required pension contribution to both GERF and PEPFF is determined by state statute and based on a percentage of payroll. Contributions are not based on an actuarial determined contribution and have not been keeping up with the plan's increasing liabilities, which indicates that employer contributions may rise in the future_ W W W. STANDARDANDPOORS .COM /RATINGSDIRECT Il. JUNE B, 2017 4 1865032 1302253518 Summary_ Columbia Heights, Minnesota; General Obligation Using updated reporting standards in accordance with Governmental Accounting Standard Board (GASB) Statement Nos. 67 and 68, the city's net pension liability as of 2016 was $19.7 million. The funded ratios of the plans, which are calculated as the plan fiduciary net position as a percent of the total pension liability, were 68.9% for GERF and 63.9% for PEPFF in fiscal 2016. The city is legally required to include any retirees in the same insurance pool as its active employees, but the premiums are paid by the retiree, resulting in an implicit rate subsidy. The city funds its OPEBs on a pay -as- you -go basis. As of Jan. 1, 2014, the most recent actuarial valuation date, the city's unfunded actuarial accrued liability was $1.0 million. Strong institutional framework The institutional framework score for Minnesota cities with a population greater than 2,500 is strong. Outlook The stable outlook reflects our expectation that Columbia Heights will maintain strong budgetary performance and very strong budgetary flexibility while continuing to benefit from access to the greater Minneapolis -St. Paul MSA. Consequently, we do not expect the rating to change within the next two years. Upside scenario Barring deterioration in other credit factors, if the city were to see a material improvement in its market value and income indicators, we could consider raising the rating. Downside scenario If the city's budgetary flexibility were to decline to a level no longer commensurate with the current rating, then we could consider lowering the rating. Related Research S &P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 Incorporating GASB 67 And 68: Evaluating Pension /OPEB Obligations Under Standard & Poor's U.S_ Local Government GO Criteria, Sept. 2, 2015 Ratings Detail (As Of June 81 2017) Columbia Hgts GO Long Term Rating AA /Stable Affirmed Columbia Hgts GO imp & util rev bnds ser 2013A dtd 11/21/2013 due 02/01/2015 -2024 Long Term Rating AA /Stable Affirmed Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is W W W. STANDARDANDPOORS. COM /RATINGSDIRECT JUNE 8, 2017 5 27 18650321 302253518 Summary: Columbia Heights, Minnesota; General Obligation available to subscribers of RatingsDirect at www.globalcreditportal.com. All ratings affected by this rating action can be found on the S &P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. W W W. STANDARDANDPOORS. COM /RATINGSDIRECT 28 JUNE 8, 2017 8 1865032 1302253518 Copyright © 2017 by Standard & Poor's Financial Services LLC. All rights reserved. No content (including ratings, credit - related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval System, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S &P). 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COM / RATINGSDIRECT JUNE 8, 2017 7 29 1865032 1302253518 - This page intentionally left blank - 30 City of Columbia Heights, Minnesota BUDGET 2019 Administration Expenses 0999 Personal Services 1999 Supplies 2999 Other Services and Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Summary Change to Fund Balance 105,200 523,300 53,800 900 4,400 350 63,300 40,920 11,670 7,900 51,300 65 9,800 118,300 181,400 78,725 4,700 20,000 - - - 64,500 174,100 588,620 65,820 126,265 181,400 204,325 -2,849 -8,656 31 -561 -2,013 -2,391 13,100 City Legal Cable Mayor - Council City Manager Clerk Assessing Services TV 101 101 101 101 101 225 Revenue 30999 Taxes 162,222 493,944 32,038 114,857 136,413 31999 Licenses & Permits - - - - 32999Intergovernmental 7,579 23,091 1,498 5,369 6,377 33999 Charge for Services - - - 3,000 34999 Fines & Forfeits - - - - 35,000 35999 Miscellaneous 1,450 4,414 286 1,026 1,219 217,425 36999 Sales and Related Charges - - - - - 39199 Transfers & Non Rev Receipts - 58,515 31,437 - - Total Revenue 171,251 579,964 65,259 124,252 179,009 217,425 Expenses 0999 Personal Services 1999 Supplies 2999 Other Services and Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Summary Change to Fund Balance 105,200 523,300 53,800 900 4,400 350 63,300 40,920 11,670 7,900 51,300 65 9,800 118,300 181,400 78,725 4,700 20,000 - - - 64,500 174,100 588,620 65,820 126,265 181,400 204,325 -2,849 -8,656 31 -561 -2,013 -2,391 13,100 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: MAYOR - COUNCIL 101 GENERAL Actual Actual Adopted Department City Manager Council 411101 MAYOR- COUNCIL Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 1 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services 94,572 74,157 90,929 105,200 105,200 1999 Supplies 1,445 1,085 600 900 900 2999 Other Services & Charges 48,106 56,344 59,909 63,300 63,300 - 4999 Capital Outlay - - - 6999 Contingencies & Transfers 11,092 2,044 5,500 4,700 4,700 TOTALS: MAYOR - COUNCIL 155,215 133,630 156,938 174,100 174,100 Activity Description The City Council is the legislative branch of city government. The Council is responsible for the establishment of policies and the adoption of local ordinances and resolutions. The Council has full authority over the financial affairs of the City and provides for the collection of all revenue and other assets, the auditing and settlements of accounts, and the safekeeping and disbursement of public monies. They appoint the City Manager and members of various advisory boards and commissions. The Council consists of a Mayor who is elected for a two -year term and four Councilmembers who are elected at large for staggered four -year terms. Objectives 1. To provide quality services with limited funding. 2. To understand and adapt to the demographic changes taking place in the City. 3. Promote the City in a positive and professional way. Budget Comments on Proposed Budget The Mayor Council Budget increased by $17,162 or 10.9% from 2018 to 2019 Personal Services increased by $14,271 due to estimating five health insurance participants instead of four. Other Services and Charges had an overall increase of $3,391. Significant changes include an increase to liability insurance, IS internal services, and Memberships. 32 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CITY MANAGER 101 41320 GENERAL CITY MANAGER Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 425,123 434,414 509,750 523,300 523,300 1999 Supplies 2,885 1,214 5,700 4,400 4,400 2999 Other Services & Charges 20,202 26,727 37,274 40,920 40,920 4999 Capital Outlay - - - - 6999 Contingencies & Transfers - 15,000 20,000 20,000 TOTALS: CITY MANAGER 448,210 462,354 567,724 588,620 588,620 Activity Description This department is responsible for the administration of all activities, functions, and programs of the City in accordance with the policies and guidelines adopted by the City Council. Duties of the department include planning, organizing, directing, and coordinating the operations of all departments, with the exception of the Police Department. This department is responsible for human resources, labor relations, and employee relations functions of the City. Objectives 1. Improve communications with employees via intranet, online services, and employee meetings which, furthers the City Council's goal of recruiting, training, and retaining a talented and professional workforce . 2. Continue to implement new Human Resources Information System which also furthers the City Council's goal of recruiting, training, and retaining a talented and professional workforce. 3. Continue to improve communications to better inform the public of City activities; and provide better communication to our residents whose primary language is not English. This objective directly addresses the City Council goal of developing a communications plan and staff position including exploring more effective uses of communication vehicles, engaging multi - cultural communities, and modernizing use of technology to engage youth in the community. 4. Continue to implement a streamlined records retention program, which again furthers the City Council's goal of enhanced communication by improving the public's access to government information. Actively work to purge files that are well outside the records retention schedule. 5. Work to recruit and retain high quality employees who better represent the residents we serve which directly furthers the City Council's goal of recruiting, training, and retaining a talented and professional workforce. Budget Comments on Proposed Budget The City Manager budget increased by $20,896 from 2018 to 2019, a 3.7% overall increase. Personal Services made up the largest increase at $13,550. Contingencies made up $5,000 of the increase as $20,000 was budgeted for the City's participation in the Government Alliance on Race and Equity that is offered through the League of Minnesota Cities. Other changes include a $1,300 reduction in Supplies, and an increase of $3,646 in Other Services and Charges to provide for citywide administrative staff safety and respectful workplace training, increased ICMA membership fees, and increases to the Employee and Volunteer Recognition line items to better cover costs for the holiday lunch and employee and outstanding citizen award recognition. 33 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CITY CLERK_ 101 41410 GENERAL CITY CLERK Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CITY CLERK Activity Description 87,744 51,983 98,240 53,800 53,800 2,918 2,513 1,350 350 350 4,965 7,769 12,188 11,670 11,670 95,628 62,265 111,778 65,820 65,820 The City Clerk provides assistance to the Mayor, City Council, and City Manager; organizes and directs elections, serves as the responsible authority for compliance with the MN Data Practices Act, maintains the City Code, prepares and assembles Council meeting agendas and materials, takes and transcribes minutes of the City Council meetings, maintains records and files of official city documents, oversees the boards and commissions, serves as the Sunshine Fund Coordinator, serves as backup to the Administrative Assistant, and is the department liaison to the Sister City Committee. With the exception of special elections, elections are only held in even numbered years. This is the reason for the significant difference from one year to the next. Objectives 1. Serve the Mayor, City Council, and City Manager in a support capacity. 2. Review and revise, as needed, the Data Practices Policy 3. Maintain city contracts. 4. Update the City's record retention policy, maintain & destroy records in accordance with the schedule. 5. Keep current on election laws and regulations. Recruit and assist with training election judges. Budget Comments on Proposed Budget Personal Services decreased significantly due to this being a non - election year. Supplies decreased by $1,000 from 2018, again due to this being a non - election year. Other Services and Charges Decreased $518, local travel and legal notice publishing saw the greatest decrease. The net budget decrease from 2018 is $45,958 or -41.1% The net budget increase from 2017 (non - election year) is $3,555 over two years 34 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: ASSESSING 101 41550 GENERAL A55ESSING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 7,129 7,479 7,647 7,900 7,900 1999 Supplies 67 50 65 65 65 2999 Other Services & Charges 116,618 116,747 118,300 118,300 118,300 4999 Capital Outlay - - 6999 Contingencies & Transfers - - - TOTALS: ASSESSING 123,814 124,276 126,012 126,265 126,265 Activity Description The Assessing Department provides tax and homestead information. Through a joint powers agreement with Anoka County, the County provides for the assessment of property in Columbia Heights and processes homestead applications. The City contracted with the County for special assessment billing services beginning in 2003. )bjectives Work with Anoka County in their implementation of a new computer system ensuring it is easier to use and provides more information to our staff and residents which furthers the City Council's goal of building on and expanding collaboration with the School District and other public entities. Budget Comments on Proposed Budget The Assessing budget increased by $253 from 2018 to 2019, or .20% with the increase occurring in Personal Services due to wage allocations. from the Public Works clerical staff. Supplies stayed equal from 2018 to 2019. Other Services and Charges remained the same from 2018 to 2019. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: LEGAL SERVICES 101 41610 GENERAL LEGAL SERVICES Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services _ 1999 Supplies _ _ _ _ - 2999 Other Services & Charges 191,958 176,141 176,300 181,400 181,400 4999 Capital Outlay - _ _ 6999 Contingencies & Transfers - - _ _ _ TOTALS: LEGAL SERVICES 191,958 176,141 176,300 181,400 181,400 - Activity Description The Legal Services Department handles all civil and prosecution matters for the City. These services are currently under retainer with the law firm of Barna, Guzy, and Steffen, Ltd. This department also budgets for outside labor attorney services. Objectives Maintain current service level under current contract terms. This function assists in accomplishing all of the City Council's goals by providing legal opinions, contract review and drafting, and negotiation assistance in all aspects of city business. Budget Comments on Prupused Budget The Legal Services budget increased by $5,100 or 2.9% from 2018 to 2019 due to a $5,000 increase to prosecution fees to better represent recent years' expenditures, and a $100 increase to the property and liability insurance allocation. 36 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CABLE TELEVISION 225 CABLE 49844- TELEVISION Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CABLE TELEVISION Activity Description 3,638 5,348 52,026 51,300 51,300 808 - 5,500 9,800 9,800 90,925 20,265 63,416 78,725 78,725 25,260 5,000 - - 29,183 63,700 64,389 64,500 64,500 149,814 89,313 190,331 204,325 204,325 The Cable Television Department operates under the Administration Department to administer the franchise ordinances with Comcast and CenturyLink; operate the local government access channel, and provide customer resolution to their cable service and billing issues. Objectives 1. Continue to administer franchise ordinances , which further the City Council goal of expanding collaboration with the other public entities. Begin to negotiate a franchise extension with Comcast. 2. Expand the amount of information and programming on the government access channel by both creating video content internally and working with outside agencies to broadcast relevant information they have created. This objective meets and benefits from the City Council goals of creating a communications plan, exploring more effective use of communication vehicles, modernizing the use of technology to engage youth, building on expanding collaboration with other public entities and supporting volunteerism within the community. 3. Enhance staff training and technical services on the cable broadcasting software and hardware as well as the City website, which meets the City Council goal of training and retaining a talented and professional workforce as well as developing a staff succession /transition plan. Budget Comments on Proposed Budget Overall, the Cable Television budget increased by $13,994, or 7.4 %. Personal Services reduced by $726 due to more precise wages being available for the Communications Coordinator. The Supplies budget was increased by $4,300 due to the proposed implementation of NeoGov, an online application processing system. Other Services and Charges increased by $15,309 due in large part to the inclusion of BambooHR HRIS subscription. Other Financing Uses was increased by $111 due an increase in the operating transfer out for labor. 37 - This page intentionally left blank - 38 City of Columbia Heights, Minnesota BUDGET 2019 Community Development Change to Fund Balance - - - - 39 Planning & Inspections EDA Downtown Parking EDA Redevelopment Project 201 204 228 408 Revenue 30999 Taxes - 242,100 247,000 31999 Licenses & Permits 366,500 - - 32999 Intergovernmental 33999 Charge for Services 500 - 34999 Fines & Forfeits - - - - 35999 Miscellaneous 2,100 2,000 25,000 3,000 36999 Sales and Related Charges - - - - 39199 Transfers & Non Rev Receipts 135,000 - - Total Revenue 503,600 244,600 25,000 250,000 Expenses 0999 Personal Services 462,500 201,900 1999 Supplies 2,400 1,500 - - 2999 Other Services and Charges 22,700 25,200 25,000 50,000 4999 Capital Outlay - - 200,000 6999 Contingencies & Transfers 16,000 16,000 - Total Expenses 503,600 244,600 25,000 250,000 Change to Fund Balance - - - - 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: PLANNING & INSPECTIONS 201 PLANNING & INSPECTIONS Actual Actual Adopted Department City Manager Coun 42400 PLANNING & INSPECTIONS Expense Expense Budget Proposed Proposed Adopteu Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: PLANNING & INSPECTIONS Activity Description 338,498 417,098 434,779 462,500 3,910 6,538 1,400 2,400 16,221 21,527 17,497 22,700 15,164 15,550 16,006 16,000 373,794 460,714 469,682 503,600 462,500 2,400 22,700 16,000 503,600 The Planning & Inspections Department ensures the public health, safety, and general welfare of the community through implementation, administration, and enforcement of the City Zoning Code and the respective Minnesota State Building Codes. The main activities of the Planning & Inspections Department include providing staff support to the Planning Commission; implementing short and long -range planning policies that address the changing dynamics of social, political, and economic environments; facilitating the implementation and administration of the Comprehensive Plan; conducting special projects for the benefit of the community; serving as project managers for development and redevelopment projects; administering FEMA requirements; issuing building, mechanical and plumbing permits, as well as contractor and businesses licenses; reviewing building plans and construction documents; and inspecting the construction and installation of projects. Objectives City Goal - SAFE COMMUNITY & EXCELLENT HOUSING AND NEIGHBORHOODS - Regulate building, mechanical and plumbing permits, as well as contractor and business licensure. - Review building and mechanical plans. - Conduct inspections for building, mechanical, and plumbing permits. City Goal - ECONOMIC STRENGTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Provide project management and coordination for development projects. - Provide staff assistance to the Planning Commission. - Provide short and long -range community planning services. - Lead various "special projects" related to City ordinance issues. City Goal - STRONG INFRASTRUCTURE/ PUBLIC SERVICES - Coordinate projects and programs with various outside agencies (Anoka County, FEMA, Met Council, MnDOT, etc.) Planning & Inspections Budget Comments Continued on Next Page 40 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Planning & Inspections Budget Comments Continued Budget Comments on Proposed Budget The Planning & Inspections Fund increased by $33,918 from 2018 to 2019, an increase of approximately 7.2% from the previous year. This increase has been realized proportionally for both revenues and expenditures since, by design, this Fund operates on a self- supporting basis through permit and license revenue activity. In the past, this Fund has been partially supported by proceeds from the EDA and HRA levies; however, in 2019, the City Levy shall support this Fund. PERSONAL SERVICES: Personal Services will increase by $27,721 primarily due to the Community Development Department budgeting for a part - time, temporary intern in 2019 and the COLA Allowance being incorporated into the 2019 budget. Previously, interns were not incorporated into the Planning & Inspections budget prior to its adoption by City Council; however, based on the anticipated work load from the commencement of Grand Central Flats and Hy -Vee, the Community Development Department shall use permit revenue proceeds from 2018 to fund a Building Inspections Intern in 2019. SUPPLIES: Supplies will increase by $1,000 in order to adequately reflect the anticipated work load. OTHER SERVICES & CHARGES: Other Services & Charges will increase by $5,203 due to increases in Information System Services (4040), Training & Education Activates (3105) to adequately reflect the anticipated seminars, conferences, and classes required for each position, as well as Commissions & Boards (4380) to allow each Planning Commissioners to attend one training activity. CAPITAL OUTLAY. No Capital Outlay is anticipated for 2019. OTHER FINANCING USES: Other Financing Uses shall realize a nominal decrease of $6 based upon the 2019 Labor Administration Distribution. 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: ECONOMIC DEVELOPMENT AUTHORITY 204 COMMUNITY DEVELOPMENT Actual Actual Adopted Department City Manager Council 46314 ECONOMIC DEVELOPMENT AUTH. Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 1 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services 172,001 151,608 163,774 201,900 201,900 1999 Supplies 1,025 144 - 1,500 1,500 2999 Other Services & Charges 15,961 20,775 14,484 25,200 25,200 4999 Capital Outlay _ - - - 6999 Contingencies & Transfers 68,615 136,216 269,984 16,000 16,000 TOTALS: ECONOMIC DEVELOPMENT 257,602 308,743 448,242 244,600 244,600 Activity Description The Economic Development Authority coordinates several activities that both directly and indirectly act as a catalyst for improving the community's overall quality of life, business vitality, and economic performance. The main activities of Economic Development Authority staff include providing support to the Columbia Heights Economic Development Authority and the Housing & Redevelopment Authority in and for the City of Columbia Heights; leveraging public and private partnerships to increase the amount of reinvestment within the City; serving as project managers for development and redevelopment projects; writing and maintaining grants from governmental agencies and corporate institutions; preparing and maintaining Tax Increment Financing, Tax Abatement, and Private Activity Bond records; developing and implementing a Business Retention & Expansion program; managing housing programs; and facilitating the acquisition and conveyance of city owned properties. Objectives City Goal - ECONOMIC STRENTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Implement goals and objectives of the Economic Development Authority - Monitor and implement housing programs to ensure neighborhood reinvestment is occurring. - Develop and implement programs that work to increase assessed property values. - Enhance business opportunities with the City. - Develop and implement a Business Retention & Expansion program. City Goal - AFFORDABILITY - Work to ensure that high - quality, affordable housing options are available for all residents. Budget Comments on Proposed Budget The Economic Development Authority Fund decreased by $203,642 from 2018 to 2019, a decrease of approximately 45.4% from the previous year. This decrease is directly correlated to the HRA Levy being recognized in Fund 408 rather than Fund 204. PERSONAL SERVICES: Personal Services will increase by $38,126 due to anticipated cost of living adjustments, performance increases, the reinstatement of the Community Development Manager position, and the COLA Allowance being incorporated into the proposed 2019 budget. SUPPLIES: Supplies will increase by $1,500 to properly address the anticipated work load. OTHER SERVICES & CHARGES: Other Services & Charges will increase by $10,716 due to increases in Expert & Professional Services (3050), Prop & Liab Insurance (3600), and Training & Education Activates (3105) to adequately reflect the anticipated seminars, conferences, and classes required for each position. OTHER FINANCING USES: Other Financing Uses will decrease by $253,984 due to the reallocation of the EDA and HRA Levies beginning in 2019, and the recognition of the HRA Levy in Fund 408 rather than Fund 204 to support the increases in redevelopment project and program expenditures. 42 226 SPECIAL PROJECT REVENUE 463171 DOWNTOWN PARKING Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: DOWNTOWN PARKING Activity Description CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: DOWNTOWN PARKING Actual Actual Adopted Department City Manager Council Expense Expense Budget Proposed Proposed Adopted 2016 1 2017 2018 1 2019 1 2019 2019 17,233 14,133 25,000 17,233 14,133 25,000 To provide for the operation of maintenance of municipal parking ramps. Objectives To provide for the operation of maintenance of municipal parking ramps. Budget Comments on Proposed Budget To provide for the operation of maintenance of municipal parking ramps. 43 226 SPECIAL PROJECT REVENUE 49846 SPECIAL PROJECTS Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: SPECIAL PROJECTS Activity Description This space intentionally left blank. Objectives This space intentionally left blank. Budget Comments on Proposed Budget This space intentionally left blank. CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SPECIAL PROJECTS Actual Actual Adopted Department City Manager Council Expense Expense Budget Proposed Proposed Adopted 2016 1 2017 1 2018 1 2019 2019 1 2019 263 70,000 27,000 - 27,263 70,000 44 22$ DOWNTOWN PARKING 46317 DOWNTOWN PARKING Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: DOWNTOWN PARKING CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: DOWNTOWN PARKING Actual Actual Adopted Department City Manager Council Expense Expense Budget Proposed Proposed Adopted 2016 1 2017 1 2018 1 2019 1 2019 1 2019 25,000 25,000 25,000 25,000 The Downtown Parking Fund operates in partnership with the Columbia Park Properties, LLP and 500, LLC to increase the economic viability of the Central Business District and maintain its livable qualities. This fund administers the management, operation, and maintenance of the two municipal parking ramps located at 950 40th Avenue NE and 4011 Van Buren Street NE, Columbia Heights, MN, a total of 679 parking stalls. jbjectives City Goal - STRONG INFRASTRUCTURE/ PUBLIC SERVICES - Administer the management, operation, and maintenance of the municipal parking ramps. Budget Comments on Proposed Budget The Downtown Parking Fund will realize no change based upon the Operation and Maintenance Agreements with Columbia Park Properties, LLP and 500, LLC. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Activity Description The Commercial Revitalization Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The two approved activities covered within this fund are the Commercial Revitalization Project and the Facade Improvement Grant Program. Objectives City Goal - ECONOMIC STRENTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Implement the Commercial Revitalization Project and the Facade Improvement Grant Program. City Goal - DIVERSE, WELCOMING SMALL -TOWN FEEL Budget Comments on Proposed Budget The Commercial Revitalization Fund increased by $136,004 from 2018 to 2019, an increase of approximately 119.3% from the previous year. This significant increase reflects that beginning in 2019 the HRA levy is recognized in fund 408 to fund increases in redevelopment project and program expenditures. 46 DEPARTMENT: COMMERCIAL REVITALIZATION 408 EDA REDEVELOPMENT PROJECT Actual Actual Adopted Department City Manager Council 46414 COMMERCIAL REVITALIZATION Expense Expense Budget Proposed Proposed Adopted Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 2,801 50,000 50,000 4999 Capital Outlay - 200,000 200,000 6999 Contingencies & Transfers TOTALS: COMMERCIAL REVITALIZAI 2,801 250,000 250,000 Activity Description The Commercial Revitalization Fund is a working capital fund designed to provide the resources necessary for the Columbia Heights Economic Development Authority to implement approved activities for the benefit of the community. The two approved activities covered within this fund are the Commercial Revitalization Project and the Facade Improvement Grant Program. Objectives City Goal - ECONOMIC STRENTH & EXCELLENT HOUSING AND NEIGHBORHOODS - Implement the Commercial Revitalization Project and the Facade Improvement Grant Program. City Goal - DIVERSE, WELCOMING SMALL -TOWN FEEL Budget Comments on Proposed Budget The Commercial Revitalization Fund increased by $136,004 from 2018 to 2019, an increase of approximately 119.3% from the previous year. This significant increase reflects that beginning in 2019 the HRA levy is recognized in fund 408 to fund increases in redevelopment project and program expenditures. 46 Revenue 30999 Taxes 31999 Licenses & Permits 32999 Intergovernmental 33999 Charge for Services 34999 Fines & Forfeits 35999 Miscellaneous 36999 Sales and Related Charges 39199 Transfers & Non Rev Receipts Total Revenue Expenses 0999 Personal Services 1999 Supplies 2999 Other Services and Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses nange to Fund Balance Proprietary Fund Information Capital Asset Purchases City of Columbia Heights, Minnesota BUDGET 2019 Finance Storm Cap. Equip Cap. Equip Finance Water Sewer Sewer IS Finance IS 101 601 602 604 720 437 437 511,692 700 23,921 - - 1,104 - 4,573 671 286 - 162,864 138,474 372,448 - - 5 - 2,000 1,164 385,000 913,334 164,639 138,760 1,169 385,000 2,000 853,600 - 319,700 6,000 1,000 1,000 - 8,300 62,700 51,300 51,300 1,200 63,000 - 96,500 96,500 - 2,000 5,000 922,300 148,800 148,800 1,200 393,000 5,000 -8,966 15,839 - 10,040 -31 - 81000 - -3,000 n/a - - 47 43,600 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: FINANCE 101 41510 GENERAL FINANCE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 726,999 782,450 830,400 853,600 853,600 1999 Supplies 6,234 6,106 6,600 6,000 6,000 2999 Other Services & Charges 53,232 53,932 54,800 62,700 62,700 4999 Capital Outlay - - - - 6999 Contingencies & Transfers - - - - - TOTALS: FINANCE 786,465 842,488 891,800 922,300 922,300 Activity Description The purpose of the Finance Department is to account for all financial operations of the City and to report on those operations. The Finance department is responsible for budgeting, financial reporting, accounts payable and receivable, payroll, utility billing, purchasing, liquor operations, and information systems within city operations. Objectives The department's ongoing objective is to continually improve its work processes. In 2019, particular emphasis will be on the planning and implementation of an ERP system. The objective is to integrate the various processes of the Finance department, and user departments' interactions with the Finance department, into one all- encompassing system. The strategy to achieve this includes: Mid -2018 update financial policies and create a quick policy reference tool for use by City departments Late -2018 identify qualified vendors and begin RFP preparation Early -2019 issue RFP, review proposals, and award vendor contract. Mid -2019 begin migration and implementation Early 2021 complete migration and implementation This departmental objective supports the City of Columbia Heights mission of providing high quality services in a fiscally - responsible and customer - friendly manner, as stated within the City Council's 2017 goals report. Budget Comments on Proposed Budget The proposed budget for 2019 is an increase of $30,500 or 3.4% over the 2018 budget. This consists of $23,200 increases in personnel costs, and $7,500 increase in other services and charges costs. The majority of the increase in personnel is for estimated cost -of- living increase changes to labor agreements for 2019 under pending negotiations. The increase in other services and charges is a combination of a $4,000 increase to professional services for assistance with the development of an RFP for the ERP system, and an $1,800 increase in the internal charge for information systems support. 48 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: WATER UTILITY 601 WATER UTILITY Actual Actual Adopted Department City Manager Council 4 -9440 ADMINISTRATION & GENERAL Expense Expense I Budget I Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: WATER UTILITY Activity Description 790 829 81,402 71,088 90,396 92,900 172,588 164,817 1,200 1,000 1,000 48,800 51,300 51,300 96,400 96,500 96,500 146,400 148,800 148,800 The Administration Department of the Water Utility Fund accounts for 33.3% of the costs associated with the utility billing process costs associated with meter reading. The remaining costs for utility billing are allocated to the Sewer Utility Fund - 33.3% and the Refuse Utility Fund 33.3 %; the remaining costs for meter reading are allocated to the Sewer Utility Fund. Objectives The department's ongoing objective is to continually improve its work processes. In 2019, particular emphasis will be on the process for managing customer accounts with repair issues indicated by unusual meter readings or malfunctioning meter radios. This serves the Columbia Heights Mission to provide the highest quality services, as stated within the City Council's 2017 goal- setting report. This also supports the key element within the Columbia Heights Vision of affordability /sustainability of services , as stated within the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The proposed budget for 2019 is an increase of $2,400 or 1.6% from the prior year. This primarily consists of increases • $1,300 increase in the internal charge for information systems support. • $1,000 increase in credit card fees, reflecting more customers choosing to pay through the City's website. The current five -year lease for the folder /inserter (mailing) machine expires 9/16/19. This budget assumes that lease will be renewed at comparable rates. Staff will research this along with other alternatives in 2019. 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SEWER UTILITY ADMINISTRATION & GENE_ RAL 602 49490 SEWER UTILITY ADMINISTRATION & GENERAL Actual Expense 1 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: SEWER UTILITY Activity Description 850 829 1,200 1,000 1,000 80,390 71,088 48,800 51,300 51,300 90,395 92,800 96,400 96,500 96,500 171,635 164,717 146,400 148,800 148,800 The Administration Department of the Sewer Utility Fund accounts for 33.3% of the costs associated with the utility billing process and one -half of the costs associated with meter reading. The remaining costs for utility billing are allocated to the Water Utility Fund - 33.3% and the Refuse Utility Fund 33.3 %; the remaining costs for meter reading are allocated to the Water Utility Fund. Objectives The department's ongoing objective is to continually improve its work processes. In 2019, particular emphasis will be on the process for managing customer accounts with repair issues indicated by unusual meter readings or malfunctioning meter radios. This serves the Columbia Heights Mission to provide the highest quality services, as stated within the City Council's 2017 goal- setting report. This also supports the key element within the Columbia Heights Vision of affordability /sustainability of services , as stated within the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The proposed budget for 2019 is an increase of $2,400 or 1.6% from the prior year. This primarily consists of increases • $1,300 increase in the internal charge for information systems support. • $1,000 increase in credit card fees, reflecting more customers choosing to pay through the City's website. The current five -year lease for the folder /inserter (mailing) machine expires 9/16/19. This budget assumes that lease will be renewed at comparable rates. Staff will research this along with other alternatives in 2019. 50 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STORM SEWER ADMINISTRATION & GENERAL 604 49690 STORM SEWER ADMINISTRATION & GENERAL Actual Expense 2016 Actual Expense 2017 Adopted Department Budget Proposed 1 2018 1 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 1,170 4999 Capital Outlay - 6999 Contingencies & Transfers - TOTALS: STORM SEWER 1,170 Activity Description 906 1,100 1,200 1,200 906 1,100 1,200 1,200 The Administration Department of the Sewer Utility Fund accounts for costs directly associated with this fund. At this time, there are no allocated costs for the utility billing process or meter reading in this fund. Objectives The Storm Sewer Administration Department is only a passive collecting point in the accounting system for certain direct costs. As such, it does not have objectives other than to fulfill this record keeping role. It is not a department that is staffed directly or indirectly (such as through a labor allocation.) Budget Comments on Proposed Budget The proposed budget for 2019 is $100 or 9.1% more than the 2018 budget. The only item in this budget is a small share of the annual audit costs. 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 The IS department provides information system implementation, management, support, and training to the City employees. With the City's dependence on IS, it is imperative to have staff on hand to support and develop the system. Modern information technologies and training increase city employees' productivity and reduce overall cost of information system ownership. Major IS components: - Almost 200 desktop PCs, virtual PCs, and portable computers. - More than 270 phones with 570 phone numbers and voicemail boxes. - 80 physical and virtual servers and data storage systems. - More than 40 printers, copiers, scanners. - Almost 250 network devices and components of video security, physical access control systems, and building automation systems. - 20 databases. - Laserfiche document imaging system (more than 500,000 documents with 3.8 million pages). - Office applications (word processing, spreadsheets, presentations, e-mail and scheduling). - Special departmental applications. - Intranet websites. Objectives 1. Ensure efficient, secure, and reliable operation of the City information system. 2. Support City Library staff and patrons. 3. Provide Internet access to the public documents in Laserfiche system. 4. Provide reliable and secure Internet access for city employees. 5. Train users and IS staff to better use city information system. These internal service objectives provide critical support for all city departments to achieve the Columbia Heights mission, vision, and ubjeclives stated within the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The proposed 2019 budget for this department is 2.7% more than 2018 budget. Major changes: - "Personal Services" are $10,000 more due to COLA adjustments. - "Supplies" are $4,000 more due to IS staff workstation replacement. 52 DEPARTMENT: INFORMATION SYSTEMS 720 INFORMATION SYSTEMS Actual Actual Adopted Department City Manager Counci' 499801 INFORMATION SYSTEMS Expense 2016 Expense 2017 Budget 2018 Proposed 2019 Proposed 2019 Adopted 2019 Line Item Description 0999 Personal Services 288,102 285,086 309,665 319,700 319,700 - 1999 Supplies 8,075 4,756 4,290 8,300 8,300 2999 Other Services & Charges 59,334 54,994 63,620 63,000 63,000 4999 Capital Outlay - - - 6999 Contingencies & Transfers - 5,000 2,000 2,000 TOTALS: INFORMATION SYSTEMS 355,511 344,835 382,575 393,000 393,000 - Activity Description The IS department provides information system implementation, management, support, and training to the City employees. With the City's dependence on IS, it is imperative to have staff on hand to support and develop the system. Modern information technologies and training increase city employees' productivity and reduce overall cost of information system ownership. Major IS components: - Almost 200 desktop PCs, virtual PCs, and portable computers. - More than 270 phones with 570 phone numbers and voicemail boxes. - 80 physical and virtual servers and data storage systems. - More than 40 printers, copiers, scanners. - Almost 250 network devices and components of video security, physical access control systems, and building automation systems. - 20 databases. - Laserfiche document imaging system (more than 500,000 documents with 3.8 million pages). - Office applications (word processing, spreadsheets, presentations, e-mail and scheduling). - Special departmental applications. - Intranet websites. Objectives 1. Ensure efficient, secure, and reliable operation of the City information system. 2. Support City Library staff and patrons. 3. Provide Internet access to the public documents in Laserfiche system. 4. Provide reliable and secure Internet access for city employees. 5. Train users and IS staff to better use city information system. These internal service objectives provide critical support for all city departments to achieve the Columbia Heights mission, vision, and ubjeclives stated within the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The proposed 2019 budget for this department is 2.7% more than 2018 budget. Major changes: - "Personal Services" are $10,000 more due to COLA adjustments. - "Supplies" are $4,000 more due to IS staff workstation replacement. 52 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Activity Description Capital Equipment Replacement fund is used for IS hardware and software purchases with a cost of a unit in the amount set by city procedures for fixed assets or more and a life expectancy of one year or longer. Objectives 1. Replace AS400 computer system (support will end on 3/31/19) with a newer model. 2. Replace Microsoft Windows Server 2008112 Datacenter (support will end on 1/14/20) with Microsoft Windows Server 2016 Datacenter. 3. Replace Microsoft SQL Server 2008112 (support will end on 7/9/19) with Microsoft SQL Server 2017. 4. Replace other IS components that are no longer supported by vendors and are not compatible with newer components. 5. Keep using existing IS components as long as they can be efficiently supported. These internal service objectives serve the key element within the Columbia Heights vision of maintaining updated public facilities, as stated within the City Council's 2017 goal- setting report. This department is within a proprietary fund. Beginning in 2015, proprietary funds are using the full accrual method for budgetary accounting, which is the same method proprietary funds use for actual accounting. The proposed 2019 budget includes $29,000 for AS400 system replacement, $14,600 for server software upgrades, and $5,000 in contingencies. 53 DEPARTMENT: IS CAPITAL EQUIPMENT REPLACEMENT 437 I.S. CAPITAL EQUIPMENT Actual Actual Adopted Department City Manager Council 499801 INFORMATION SYSTEMS Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services - - 1999 Supplies 13,263 12,699 - 2999 Other Services & Charges - - - 4999 Capital Outlay 6999 Contingencies & Transfers - 5,000 5,000 5,000 TOTALS: IS CAP EQUIP REPLACEMENT 13,263 12,699 5,000 5,000 5,000 Activity Description Capital Equipment Replacement fund is used for IS hardware and software purchases with a cost of a unit in the amount set by city procedures for fixed assets or more and a life expectancy of one year or longer. Objectives 1. Replace AS400 computer system (support will end on 3/31/19) with a newer model. 2. Replace Microsoft Windows Server 2008112 Datacenter (support will end on 1/14/20) with Microsoft Windows Server 2016 Datacenter. 3. Replace Microsoft SQL Server 2008112 (support will end on 7/9/19) with Microsoft SQL Server 2017. 4. Replace other IS components that are no longer supported by vendors and are not compatible with newer components. 5. Keep using existing IS components as long as they can be efficiently supported. These internal service objectives serve the key element within the Columbia Heights vision of maintaining updated public facilities, as stated within the City Council's 2017 goal- setting report. This department is within a proprietary fund. Beginning in 2015, proprietary funds are using the full accrual method for budgetary accounting, which is the same method proprietary funds use for actual accounting. The proposed 2019 budget includes $29,000 for AS400 system replacement, $14,600 for server software upgrades, and $5,000 in contingencies. 53 - This page intentionally left blank - 54 City of Columbia Heights, Minnesota BUDGET 2019 Fire Expenses 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Change to Fund Balance 1,041,100 395,900 61,300 1,700 253,400 9,200 - 295,000 1,355,840 406,800 295,000 - 19,204 -3,458 - - 261,799 - 55 Property Public Safety Cap Equip Cap Equip Fire Inspections Grant - Other Replacement Fire Fire 101 101 272 431 439 Revenue 30999 Taxes 1,095,967 197,352 31999 Licenses & Permits 600 185,000 - - 32999 Intergovernmental 148,235 9,226 15,661 33999 Charge for Services 82,000 10,000 - 34999 Fines & Forfeits 35999 Miscellaneous 9,794 1,764 15,034 36999 Sales and Related Charges - - - 39199 Transfers & Non Rev Receipts - 2,506 Total Revenue 1,336,596 403,342 33,201 - Expenses 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Change to Fund Balance 1,041,100 395,900 61,300 1,700 253,400 9,200 - 295,000 1,355,840 406,800 295,000 - 19,204 -3,458 - - 261,799 - 55 101 GENERAL 42200 FIRE Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: FIRE Activity Description U I Y Ur L.ULUIVItfIA HtIUM I J, IV] INN tJU I A BUDGET 2019 DEPARTMENT: FIRE Actual Actual Adopted Expense Expense, Budget 2016 1 2017 1 2018 1,087,004 1,132,173 1,139,990 56,879 63,031 55,767 175,331 214,618 234,100 Department I City Managerl Council Proposed Proposed Adopted 2019 1 2019 1 2019 1,041,100 1,041,100 61,300 61,300 253,400 253,400 1,319,214 1,409,822 1,429,857 1,355,800 1,355,800 The Fire Department provides medical care, fire suppression, public education, and inspection services for the citizens of Columbia Heights. The Fire Department also supplies the City of Hilltop with fire and medical service through a contract agreement. The Fire Department will continue to work with neighboring communities to share resources through auto aid and mutual aid agreements along with sharing of personnel for County and regional teams. Emergency Management works side by side with the U.S. Department of Homeland Security, Minnesota Department of Homeland Security and Emergency Management, and the Anoka County Emergency Manager to provide emergency management for the protection of public safety, health, and welfare in our city during emergencies and natural disasters. Objectives The Fire Department prides itself in our pro- active, modern approach in providing fire and EMS services. Based on the goals and objectives of city staff and the City Council we will continue to strive toward meeting some of these goals by: Build and Expand collaboration with the School District, other public entities by continuing and building our involvement with County and regional teams, emergency management organizations, the sharing of resources with neighboring communities, and continuing our move to the county wide computer data system. Conduct an Evaluation of City Staffing Levels by continuing to look at different, more stable staffing models, prioritizing fire department functions, and training full time staff for the fire department of the future which includes emergency management. The 2018 staffing study will be used as a resource in these evaluations. Expand Public safety community engagement programs with emphasis on prevention by having the fire department become more involved in outside community organizations, expanding our public education program, and working with the school district to provide a more efficient fire prevention education program in our schools. This goal may be difficult to achieve with current staffing due to the significant amount of time and resources dedicated to the Property Maintenance Inspection program. Fire Budget Comments Continued on Next Page 56 LI I Y Ur LULU IVI IJIA Fit Ili N I �0, IVI INN tJU I A BUDGET 2019 Fire Budget Comments Continued Budget Comments on Proposed Budget The increases in the number of emergency calls, requests for fire services, rental properties and the need for property inspections has outpaced the abilities of the current Fire Department staffing model to complete everything in a timely manner. A National trend that we are also seeing in Minnesota is the difficulty in recruiting and retaining Paid -on -Call Firefighters. POC firefighters are covering less open shifts due to the changing demographics and their use of their free time. Using POC firefighters to cover shifts for full time firefighters is no longer a stable option. Overtime is proposed to increase and will continue to be high in order to maitain a minimum of two firefighters on duty and to conduct inspections. This workload is causing "burn out" of the full time staff. A staffing study will be completed in 2018 that will assist in making decisions for staffing the Fire Department at a level that will allow quality inspections to be conducted, notjust quanity, along with the time and staff to fulfill our core fire department and emergency managment missions. The percentage of time that individual positions are charged to the Property Inspections budget has not been updated since its inception in 2010. An evaluation of the time was conducted and the percentage for some positions, especially the firefighters, has increased dramatically. This has almost doubled the cost of the inspection program and shows the significant subsidy of the City, and the Fire Department to run the program. The combined Fire /Property Inspections budget shows a net increase of $124,571 or 7.6% over 2018. The Fire Department 42200 budget by itself shows a decrease of -5.2% due to more time being shifted to the Property Inspections Department 42300, but there are still significant budget increases in the Fire Department. In Personal Services, increases include $20,000 in Overtime to bring it more in line with annual expenditures. Other increases include contract step increases for two firefighters and a Captain, plus related fringe. Also included is an increase in the City contribution to PERA that was recently passed by the State Legislature, and a COLA increase. The Supplies budget shows a small increase due to a $2,000 increase in computer equipment and a $3,000 increase in General Supplies mostly due to an increase of cost for medical supplies. An overall increase of $19,300 in the Other Services & Charges area is mostly due to increases of $3,000 in Training, $2,900 in our allocation of Building Maintenance labor costs, and a $7,300 increase in our IS allocation. 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: PROPERTY INSPECTIONS 101 42300 GENERAL PROPERTY INSPECTIONS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 170,409 183,883 197,272 395,900 395,900 1999 Supplies 478 719 1,500 1,700 1,700 2999 Other Services & Charges 5,777 6,655 9,400 9,200 9,200 4999 Capital Outlay _ _ _ - 6999 Contingencies & Transfers - - _ TOTALS: PROPERTY INSPECTIONS 176,664 191,258 208,172 406,800 406,800 Activity Description Property Inspections incorporates all rental property licensing and inspections, long grass /weed inspections, nuisance inspections and property maintenance inspections under one budget. Objectives The Fire Department provides timely and efficient fire and property maintenance inspection services in order to maintain property values by: Build and Expand collaboration with the School District, other public entities by continuing our strong partnerships with other city departments to provide coordinated inspection services. Conduct an Evaluation of City Staffing Levels by evaluating our inspection staffing needs to meet the demands of the high number of rental properties and property maintenance inspection demands. The 2018 staffing study will be used as a resource in these evaluations. Budget Curnrnenls on Proposed Budget The number of rental properties and licensing inspections has leveled off but is still too high for current staffing. The need for property maintenance inspections continues to remain high. Staffing needs will be continually evaluated in order to provide the necessary staff to do the inspections in a timely and efficient manner while also allowing the fire staff to complete their fire /EMS responsibilities. The combined Fire /Property Inspections budget shows a net increase of $124,571 or 7.6% over 2018. The Property Inspections Department 42300 budget by itself shows an increase from 2018 to 2019 of $198,628 or 95.4 %. The percentage of time that individual positions are charged to the Property Inspections budget has not been updated since its inception in 2010. An evaluation of the time was conducted and the percentage for some positions, especially the firefighters, has increased dramatically. This has almost doubled the cost of the inspection program and shows the significant subsidy of the City, and the Fire Department to run the program. Small changes in the Supplies area and the Other Services and Charges area show a small overall increase of $200.00. 58 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SAFER GRANT 2015 - 2017 272 42202 PUBLIC SAFETY GRANTS - OTHER SAFER GRANT 2015 - 2017 Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Council Proposed Adopted 2019 1 2019 Line Item Description 0999 Personal Services 145,849 119,773 1999 Supplies - - - - 2999 Other Services & Charges - 4999 Capital Outlay - - - - 6999 Contingencies & Transfers - - - - TOTALS: SAFER GRANT 2015 - 2017 145,849 119,773 - - - Activity Description This activty consisted of two full -time firefighter positions funded by a federal grant. The grant and the activity both ended in 2017. Objectives B Not applicable. See above. .fidget Comments on Proposea tsuagec Not applicable. See above. 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT GENERAL 431 42200 CAP EQUIP REPLACEMENT GEN FIRE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2,073 - 2999 Other Services & Charges - - - _ 4999 Capital Outlay 50,946 117,326 315,000 295,000 295,000 6999 Contingencies & Transfers - - _ _ TOTALS: CAP EQUIP REPLACEME 53,018 117,326 315,000 295,000 295,000 Activity Description The Fire Capital Equipment Replacement - General Fund was established to fund the long term ongoing capital equipment needs in the general fund. This was accomplished by preparing, and maintaining, a detailed 20 year projection of the City's equipment needs and scheduling long term replacement. Objectives Replace equipment as needed in accordance with the Fire Department replacement schedule. Budget Comments on Proposed Budget The proposed budget is a decrease of - 20,000 or -6% from 2018 to 2019. Current mobile and portable radios were purchased County wide in 2005. Motorola will be ending support, service, and parts for portable radios in 2019. Mobile radios and half of the portable radios were replaced in 2018. Due to the costs of the radios, replacement was planned to be split over two years. Proposing to replace fourteen portable radios in 2019, along with accessories for a budgeted cost of $55,000. Fire Department Self Contained Breathing Apparatus (SCBA) were purchased in 2005. The air bottles are at the end of their 15 year life and needed maintenance on the packs is rising. Proposing to purchase 27 packs, 2 RIT packs, spare masks, and misc. accessories for $240,000. This purchase will be made along with Fridley Fire Department and possibly one or more other fire departments. .E CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: FIRE CAPITAL EQUIPMENT 439 42200 FIRE CAPITAL EQUIPMENT FIRE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: FIRE CAPITAL EQUIPMEN' Activity Description 17,886 - 17,886 - This activity used a large one -time funding source to purchase fire equipment for many years. This funding was exhausted in 2016. After 2016, fire equipment is purchased from the City's general government equipment fund 431 used by all city departments. Objectives Not applicable. See above. Budget Comments on Proposed Budget Not applicable. See above. 61 - This page intentionally left blank - 62 City of Columbia Heights, Minnesota BUDGET 2019 General Government Total Revenue Expenses 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Change to Fund Balance 155,362 41,315 34,428 132,796 15,400 1,700 142,300 40,300 - 35,000 135,000 157,700 42,000 35,000 135,000 -2,338 63 -685 -572 -2,204 City Recognition/ Cap Equip. Repl Hall Spec Events Contingencies Transfers Gen. Gov Bldgs. 101 101 101 101 431 Revenue 30999 Taxes 133,432 39,135 32,613 125,791 31999 Licenses & Permits - - - 32999Intergovernmental 6,238 1,830 1,524 5,881 33999 Charge for Services - - - - 34999 Fines & Forfeits - - - 35999 Miscellaneous 15,692 350 291 1,124 36999 Sales and Related Charges - - - 39199 Transfers & Non Rev Receipts - - Total Revenue Expenses 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Change to Fund Balance 155,362 41,315 34,428 132,796 15,400 1,700 142,300 40,300 - 35,000 135,000 157,700 42,000 35,000 135,000 -2,338 63 -685 -572 -2,204 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Activity Description This department accounts for the general maintenance of City Hall. The major expenses in this budget are utilities, janitorial expenses, building maintenance, and HVAC. Due to the age of the building, it is susceptible to significant unplanned emergency maintenance over time. Additionally, a significant portion of the department's budget is for weather- dependent utility costs. These greater risk factors, relative to many other departments, are considered when estimating the next year's budget. Objectives The development of a master plan for City Hall is a short -term objective in the City of Columbia Heights' 2017 Goals Report. This department's role in that objective is to maintain City Hall in a condition that is safe and respectable until the master plan is developed and implemented. Budget Comments on Proposed Budget The proposed 2019 budget for this department is an increase of $3,700 or 2.4% from the prior year. Approximately half of this increase is in the allowance for the purchase of chairs, desks , and other furniture, within Supplies line item 2010 Minor Equipment. The remaining half is primarily an increase in the internal service charge for custodians and the facilities maintenance supervisor within line item 4010 included in Other Services and Charges. Note that prior to 2019, charges for interdepartmental labor appear in this budget for occasional public works time spent to paint or repair City hall, or to install furniture, etc. Beginning in 2019, this occasional services are included within line item 4010 included in Other Services and Charges. The current five -year leases for the postage meter and folder /inserter (mailing) machine expires 9/16/19. This budget assumes that lease will be renewed at comparable rates. Staff will research this along with other alternatives in 2019. 64 DEPARTMENT: CITY HALL 101 GENERAL Actual Actual Adopted Department City Manager Council 41940 CITY HALL Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 922 1,199 1,500 - - 1999 Supplies 12,987 15,848 13,000 15,400 15,400 2999 Other Services & Charges 111,130 126,364 139,500 142,300 142,300 4999 Capital Outlay _ _ _ _ - 6999 Contingencies & Transfers - _ TOTALS: CITY HALL 125,039 143,411 154,000 157,700 157,700 Activity Description This department accounts for the general maintenance of City Hall. The major expenses in this budget are utilities, janitorial expenses, building maintenance, and HVAC. Due to the age of the building, it is susceptible to significant unplanned emergency maintenance over time. Additionally, a significant portion of the department's budget is for weather- dependent utility costs. These greater risk factors, relative to many other departments, are considered when estimating the next year's budget. Objectives The development of a master plan for City Hall is a short -term objective in the City of Columbia Heights' 2017 Goals Report. This department's role in that objective is to maintain City Hall in a condition that is safe and respectable until the master plan is developed and implemented. Budget Comments on Proposed Budget The proposed 2019 budget for this department is an increase of $3,700 or 2.4% from the prior year. Approximately half of this increase is in the allowance for the purchase of chairs, desks , and other furniture, within Supplies line item 2010 Minor Equipment. The remaining half is primarily an increase in the internal service charge for custodians and the facilities maintenance supervisor within line item 4010 included in Other Services and Charges. Note that prior to 2019, charges for interdepartmental labor appear in this budget for occasional public works time spent to paint or repair City hall, or to install furniture, etc. Beginning in 2019, this occasional services are included within line item 4010 included in Other Services and Charges. The current five -year leases for the postage meter and folder /inserter (mailing) machine expires 9/16/19. This budget assumes that lease will be renewed at comparable rates. Staff will research this along with other alternatives in 2019. 64 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: RECOGNITION /SPECIAL EVENTS 101 45050 kUe GENERAL RECOGNITION /SPECIAL EVENTS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: RECOGNITION /SPECIAL Activity Description 214 784 300 1,700 1,700 39,778 41,133 40,600 40,300 40,300 39,992 41,917 40,900 42,000 42,000 This department was established to budget and account for various activities that do not specifically fall under other departments. Examples of these activities are employee and volunteer recognition events, fireworks at the Jamboree, the City Beautification program, and the City newsletter. Objectives The newsletter provides essential information to residents, and is a component of the objective of developing a communications plan, noted within the City of Columbia Heights' 2017 Goals Report . The plants and flowers in our parks and public areas clearly beautify the city and show a heightened sense of community pride, improving the impression our city makes on visitors, new residents, and long -time residents. This supports the objective stated in the City of Columbia Heights' 2017 Goals Report of "getting ready for company ". The fireworks display at the Jamboree provides the capstone activity to the largest community event of the year. The Jamboree, the community picnic, and the royalty program, all foster many elements of the Columbia Heights Vision, as stated in the City of Columbia Heights' 2017 Goals Report, including providing a diverse, welcoming small -town feel and community cohesion. Providing opportunities for employee recognition fosters the retention of talented, skilled public servants, as stated in elements comprising the vision of the City of Columbia Heights' 2017 Goals Report. Budget Comments on Proposed Budget The total budget proposed for 2019 for this department is $1,100 or 2.7% more than 2018. This budget has not increased since 2016. The proposed increase is in the amounts allocated for employee and community events. The $26,000 budgeted for 2019 for the newsletter is, in total, the same as in the prior year budget. Within that total however, the new cost to upgrade to color printing [$3,600] and new contract labor for graphic design support [$1,800] will replace the amount previously used for editing the newsletter [$5,400.] In 2019, the newsletter will be edited by the Communications Coordinator, a position first established in the 2018 budget. 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 This department was established to budget and account for activities not budgeted under other departments_ Objectives The objective of the Contingency department is to allow for sufficient flexibility in the overall budget to adapt to items which, cannot be projected /forecasted with sufficient certainty to be detailed in the budget. This supports the element within the Columbia Heights Vision of well - planned and well- maintained public services /infrastructure, as stated in the City of Columbia Heights' 2017 Goals Report. Budget Comments on Proposed Budget The proposed 2019 budget is the same as the 2017 and 2018 budgets- i DEPARTMENT: CONTINGENCIES 101 GENERAL Actual Actual Adopted Department City Manager Council 49200 CONTINGENCIES Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services _ 1999 Supplies 2999 Other Services & Charges 7,995 _ 4999 Capital Outlay _ _ 6999 Contingencies & Transfers 35,000 35,000 35,000 TOTALS: CONTINGENCIES 7,995 35,000 35,000 35,000 Activity Description This department was established to budget and account for activities not budgeted under other departments_ Objectives The objective of the Contingency department is to allow for sufficient flexibility in the overall budget to adapt to items which, cannot be projected /forecasted with sufficient certainty to be detailed in the budget. This supports the element within the Columbia Heights Vision of well - planned and well- maintained public services /infrastructure, as stated in the City of Columbia Heights' 2017 Goals Report. Budget Comments on Proposed Budget The proposed 2019 budget is the same as the 2017 and 2018 budgets- i CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: TRANSFERS 101 49300 GENERAL TRANSFERS Actual Expense 2016 Actual Expense 2017 J Adopted I Budget 2018 Department Proposed 1 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies - - 2999 Other Services & Charges - - 4999 Capital Outlay - - - - 6999 Contingencies & Transfers 88,917 1,400,000 135,000 135,000 TOTALS: TRANSFERS 88,917 1,400,000 135,000 135,000 Activity Description This department was established to account for transfers -out from the General Fund to other city funds, when those transactions are not specific to any of the various individual operating departments within the General Fund budget. Objectives This department's only objective is to be a pass- through point between the general fund and other funds, separate from the operating departments within the general fund. Budget Comments on Proposed Budget The only item proposed in this budget for 2019 is a new annual transfer of $135,000 of general fund property tax levy to Fund 201 Planning and Inspections, to fund two planning - related staff positions. In prior years, these two positions were funded by the property taxes collected from the EDA and HRA property tax levies. The only item in this budget for 2018 was a one -time transfer of $1,400,000 to the Govt Buildings Fund 411 towards the replacement of City Hall. There were no items in this budget for 2017. 67 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAPITAL EQUIP. GENERAL GOVERNMENT BLDGS. 431 41940 CAPITAL EQUIPMENT REPLACEMENT FUND GENERAL GOVERNMENT BUILDINGS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services _ 1999 Supplies 2999 Other Services & Charges - 4999 Capital Outlay 28,000 - 6999 Contingencies & Transfers - - TOTALS: GENERAL GOVERNMENT BUILDING! - 28,000 Activity Description This department was established to account for periodic purchases of equipment that are not included in the budgets of other functional areas, such as equipment used by multiple functional areas, or equipment purchased as a group for the benefit of multiple functional areas. Objectives There are no items scheduled in this budget for 2019. Budget Comments on Proposed Budget There are no items scheduled in this budget for 2019- W City of Columbia Heights, Minnesota 2019 Library Change to Fund Balance - .• Revenue 30999 Taxes 955,095 31999 Licenses & Permits - 32999 Intergovernmental - 33999 Charge for Services 14,105 34999 Fines & Forfeits 12,500 35999 Miscellaneous 10,000 36999 Sales and Related Charges 39199 Transfers & Non Rev Receipts 11,000 Total Revenue 1,002,700 Expenses 0999 Personal Services 670,200 1999 Supplies 98,700 2999 Other Services and Charges 219,100 4999 Capital Outlay - 6999 Contingencies & Transfers 14,700 Total Expenses 1,002,700 Change to Fund Balance - .• CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: LIBRARY 240 45500 LIBRARY LIBRARY Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 561,982 564,042 638,145 670,200 670,200 1999 Supplies 91,639 92,981 106,100 98,700 98,700 2999 Other Services & Charges 116,212 175,265 193,688 219,100 219,100 4999 Capital Outlay - 6999 Contingencies & Transfers 13,979 14,317 14,711 14,700 14,700 TOTALS: LIBRARY 783,812 846,606 952,644 1,002,700 1,002,700 Activity Description The Library serves a diverse community's need for access to resources, information, and technology in a welcoming environment. It collects and lends materials in multiple formats including books, magazines, newspapers, music, videos, and energy meters. It provides educational programs and services including literacy -based storytimes, adult language learning and literacy programs, reading programs for all ages, arts and cultural events, and home delivery of materials. The Library provides free access to computer software programs, the internet, and online research and instructional databases. It facilitates summer nutritional programs for children and provides space for individual work or study and public meetings. Library staff provide one -to -one and class -based computer instruction as well as research and reference assistance. Library staff provide customer service during 54 operational hours each week. The Library contracts with Anoka County Library for inclusion in an integrated library system to manage patron information and collection inventory, delivery of materials, and access to electronic resources such as databases, e- books, e- magazines, and downloadable audiobooks. It participates in the Metropolitan Library Service Agency (as an Associate Library), the Minitex multi -state interlibrary loan program, the Statewide Borrowers' Compact, and METRONET. These cooperative agreements enable Columbia Heights residents to gain access to library materials, special services, and electronic resources available throughout the state of Minnesota. The cooperative agreements also provide staff with professional training and development opportunities. Objectives In 2019 Library staff will continue to provide the resources and programs described in the previous Activity Description. They will connect visitors with the information and materials they need; provide a safe and welcoming space to study, work, and connect with neighbors; offer educational and entertaining programming for children and adults; and address the unique information and continuing education needs of the Columbia Heights community. 2019 will be the third full year in the Central Avenue facility. Electricity costs include acquisition costs for rooftop solar panels to reduce future electricity costs. Library technology, including RFID- enabled self -check stations and security gates and automated materials handling equipment, have significant annual maintenance costs but result in reduced labor costs. Library customers appreciate the modern convenience of self check and book drop technology. As we look to future budgets, public computing hardware and software, now four years old, will need to be updated. Library Board and staff will begin a strategic planning process in 2019 to guide library objectives over the next five years. Library Budget Comments Continued on Next Page 70 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Library Budget Comments Continued Budget Comments on Proposed Budget The proposed budget for 2019 includes a 5.3% increase over the 2018 adopted budget. Personnel: Personnel expenses account for two- thirds of the overall library budget. No contracts have been settled with bargaining units for 2019. Four of six full -time staff and five of twelve part -time staff are still progressing through approved steps of pay ranges. The library aide position will remain unfilled in 2019. Staffing is at the absolute minimum to allow 54 hours of public service each week. Staffing levels limit library staff availability for outreach events during regular operational hours and substitute coverage during paid leaves. Underspending of past budgets was largely due to staff departures and subsequent delays in the appointment of replacements. Supplies: The supplies budget has decreased from the adopted 2018 budget. The increase in line 2025 (ACS supplies) anticipates the need to purchase library cards in 2019. The increase in line 2171 (general supplies) incorporates the cost of toilet paper and paper towels for public restrooms and building cleaning supplies, which were erroneously budgeted to the building maintenance line (4010) in the past. All other lines have been decreased or remain the same as 2018 based on actual expenditures in 2017 and the need to redirect collection dollars toward building and equipment maintenance. Preliminary conversations with Anoka County Library anticipate reductions in collection spending in 2019, including for e -books and periodicals. Other Services and Charge , This section of the budget incorporates a 13% increase over 2018. Electric and gas utilities were budgeted at 5% over 2017 actual expenditures; water and sewer costs were estimated at 2.5% over 2017 actuals. Line 3810 (electrical) also includes amortized costs for the purchase and installation of rooftop solar panels , which will result in significant reductions in electricity costs once payout has been completed. The slight Increase in line 3050 (professional services) anticipates an inflation -based increase to integrated library system software sharing costs and audit fees. The increase to line 4000 includes allowances for copier and printer overage charges to contracted maintenance agreements based on actual usage. Property and liability insurance costs have Increased 6% from 2018. Building maintenance labor costs have increased 11% over 2018. The increase in the information systems line item #4040 reflects a 15% cost increase in this internal charge for all city departments using information services in 2019. From 2015 through 2018, the City phased in a long -term update to the proportionate shares of I/S costs allocated between user departments based on the number of devices in use in 2015. Beginning in 2019, the I/S charges reflect actual current costs. For tax - supported departments, additional 2019 funding is provided specifically for this 15% increase, so that departments are not required to fund it from the basic 3.5% inflation allowance provided to each 2019 budget. Coital Ouday: No capital outlay is anticipated for 2019- Other Financin Uses: Charges for the library share of city administrative staff remain unchanged from 2018. 71 - This page intentionally left blank - 72 City of Columbia Heights, Minnesota BUDGET 2019 Liquor Operating Store #1 Store #2 Store #3 609 609 609 Revenue 30999 Taxes - - 31999 Licenses & Permits - - 32999 Intergovernmental - - 33999 Charge for Services - 34999 Fines & Forfeits - - 35999 Miscellaneous 7,218 5,810 2,714 36999 Sales and Related Charges 4,019,000 3,267,000 1,317,000 39199 Transfers & Non Rev Receipts - - _ - Total Revenue 4,026,218 3,272,810 1,319,714 Expenses 0999 Personal Services 1999 Supplies, including cost of goods 2999 Other Services and Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Change to Fund Balance Proprietary Fund Information Capital Asset Purchases 73 551,400 453,800 180,200 3,035,100 2,478,700 1,008,400 283,600 226,900 57,900 3,870,100 3,159,400 1,246,500 156,118 113,410 73,214 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT= LIQUOR STORE #1 609 49791 LIQUOR LIQUOR STORE #1 Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Council Proposed Adopted 2019 2019 Line Item Description 0999 Personal Services 538,340 488,396 530,800 551,400 551,400 1999 Supplies 3,007,710 2,951,515 3,086,300 3,035,100 3,035,100 2999 Other Services & Charges 272,526 270,324 271,600 283,600 283,600 4999 Capital Outlay - - - - 6999 Contingencies & Transfers - - - - TOTALS: LIQUOR STORE #1 3,818,576 3,710,236 3,888,700 3,870,100 3,870,100 Activity Description Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Additionally, when the current Top Valu I facility was constructed in 2007 -2008 at 4950 Central Avenue NE, the City Council chose to construct the building to very strict design guidelines, so that this store will be a leading example for other businesses in the community for many years. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D. A. R. E. Objectives Beginning in 2018 and carrying through 2019, the liquor operation is adjusting its product offerings and sales strategies, in combination with its recent achievements in inventory management, to continue to be financially sound in the highly competitive Twin Cities metro market. Various promotions, tastings, and special events held in recent years have proven to be very popular with customers and will be continued in 2019. Several of the these activities are done in partnership with community groups, in furtherance of the City Council objectives of collaboration and volunteerism stated in the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, proposed 2019 operating expenses for all three stores combined show an increase of $61,000 or 3.6% over the current year budget. $42,000 of this increase (for all three stores combined) is in personnel, primarily for estimated 2019 labor agreement changes. It also includes a net of 8 additional PT staff hours per week to adjust to actual experience in 2017 -2018 for Sunday sales. The expense category Other Services and Charges increased by $19,000 (for all three stores combined) . This is primarily from increased costs for building maintenance and information systems support. 74 609 LIQUOR 497921 LIQUOR STORE #2 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: LIQUOR STORE #2 Activitv Descriotion CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT- LIQUOR STORE #2 Actual Actual Adopted Department City Manager Council Expense Expense Budget Proposed Proposed Adopted 2016 1 2017 1 2018 1 2019 1 2019 1 2019 420,192 410,930 430,300 453,800 453,800 - 2,441,668 2,398,210 2,498,400 2,478,700 2,478,700 213,013 217,649 219,300 226,900 226,900 3,074,874 3,026,788 3,148,000 3,159,400 3,159,400 Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for City operations. The income opportunities are limited however, by significant market competition within the metro area. Additionally, when the current Top Valu II facility was constructed in 2007 -2008 at 2105 37th Avenue NE, the City Council chose to construct the building to very strict design guidelines, so that this store will be a leading example for other businesses in the community for many years. Our City's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for City infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A. R. E. Obiectives Beginning in 2018 and carrying through 2019, the liquor operation is adjusting its product offerings and sales strategies, in combination with its recent achievements in inventory management, to continue to be financially sound in the highly competitive Twin Cities metro market. Various promotions, tastings, and special events held in recent years have proven to be very popular with customers and will be continued in 2019. Several of the these activities are done in partnership with community groups, in furtherance of the City Council objectives of collaboration and volunteerism stated in the City Council's 2017 goal- setting report. Budeet Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, proposed 2019 operating expenses for all three stores combined show an increase of $61,000 or 3.6% over the current year budget. $42,000 of this increase (for all three stores combined) is in personnel, primarily for estimated 2019 labor agreement changes. It also includes a net of 8 additional PT staff hours per week to adjust to actual experience in 2017 -2018 for Sunday sales. The expense category Other Services and Charges increased by $19,000 (for all three stores combined) . This is primarily from increased costs for building maintenance and information systems support. 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A.R.E. Objectives Exterior and interior updates to improve the visual appeal of this store in 2018 and 2019 are planned as part of a larger project initially- approved by the City Council in 2012. These updates include exterior trim, lighting, signage, flooring, paint, counters, and additional security cameras. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, proposed 2019 operating expenses for all three stores combined show an increase of $61,000 or 3.6% over the current year budget. $42,000 of this increase (for all three stores combined) is in personnel, primarily for estimated 2019 labor agreement changes. It also includes a net of 8 additional PT staff hours per week to adjust to actual experience in 2017 -2018 for Sunday sales. The expense category Other Services and Charges increased by $19,000 (for all three stores combined) . This is primarily from increased costs for building maintenance and information systems support. 76 DEPARTMENT: LIQUOR STORE #3 609 LIQUOR Actual Actual Adopted Department City Manager Council 49793 LIQUOR STORE #3 Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 153,425 143,285 182,000 180,200 180,200 - 1999 Supplies 984,937 974,973 1,033,800 1,008,400 1,008,400 2999 Other Services & Charges 46,785 48,744 58,300 57,900 57,900 - 4999 Capital Outlay - _ _ - _ 6999 Contingencies & Transfers - _ _ _ TOTALS: LIQUOR STORE #3 1,185,148 1,167,002 1,274,100 1,246,500 1,246,500 - Activity Description Under MN statute, the primary purpose of municipal liquor stores is to control the distribution of alcohol . Municipal liquor stores can also generate income for the community, reducing the amount of property taxes otherwise required for city operations. The income opportunities are limited however, by significant market competition within the metro area. Our city's three -store municipal liquor operation is the 6th largest by gross sales in Minnesota. It has provided funds for city infrastructure, equipment, and mitigation of the negative effects of alcohol in the community through activities such as D.A.R.E. Objectives Exterior and interior updates to improve the visual appeal of this store in 2018 and 2019 are planned as part of a larger project initially- approved by the City Council in 2012. These updates include exterior trim, lighting, signage, flooring, paint, counters, and additional security cameras. Budget Comments on Proposed Budget Within the Supplies category, the cost of goods sold for the liquor operation is budgeted each year to reflect the most recent sales projections available. Apart from the cost of goods sold, proposed 2019 operating expenses for all three stores combined show an increase of $61,000 or 3.6% over the current year budget. $42,000 of this increase (for all three stores combined) is in personnel, primarily for estimated 2019 labor agreement changes. It also includes a net of 8 additional PT staff hours per week to adjust to actual experience in 2017 -2018 for Sunday sales. The expense category Other Services and Charges increased by $19,000 (for all three stores combined) . This is primarily from increased costs for building maintenance and information systems support. 76 City of Columbia Heights, Minnesota BUDGET 2019 Liquor Non - Operating Non - Operating 609 Revenue 30999 Taxes 31999 Licenses & Permits 32999 Intergovernmental 33999 Charge for Services 34999 Fines & Forfeits - 35999 -Miscellaneous 258 36999 Sales and Related Charges - 39199 Transfers & Non Rev Receipts - Total Revenue 258 Expenses 0999 Personal Services 1999 Supplies, including cost of goods 2999 Other Services and Charges 4999 Capital Outlay - 6999 Contingencies & Transfers 449,400 Total Expenses 449,400 Change to Fund Balance - 449,142 Proprietary Fund information Capital Asset Purchases 77 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Activity Description To improve the analysis of results at each of the three stores, activity that is not a function of store operations is accounted for separately in the non - operating department 49794. These nonoperating activities routinely include acquisition of equipment over $5,000; construction of building or parking lot improvements; debt service; and transfers to other city funds. Objectives The main objective for this department for 2019 is to continue funding other departments at a level consistent with prior years: The Infrastructure Fund 430 at $50,000. This supports the key element of strong infrastructure in the Columbia Heights Vision stated within the City Council's 2017 goal- setting report. D.A.R.E. and other police community programs at $10,000 within the General Fund, which is an increase of $1,000 over prior years. This supports the key element of safe community within the Columbia Heights Vision stated in the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The budget for this department is $34,000 or 8% higher for 2019 than for 2018. In 2018, funds previously placed in escrow were used for a portion of 2018 debt service, reducing the amount required from this department for 2018. Factoring out that one -time transaction, the 2019 budget for this department is almost $100,000 or 18°Y less than in years prior to 2018. This primarily reflects the reduced interest rate obtained by refinancing in 2017, but it is also due to some operational improvements requiring less administrative labor. 78 DEPARTMENT: LIQUOR NON - OPERATING 609 LIQUOR Actual Actual Adopted Department City Manager Council 49794 LIQUOR NON - OPERATING Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services - _ 1999 Supplies _ 2999 Other Services & Charges 4999 Capital Outlay _ _ 6999 Contingencies & Transfers 550,818 549,200 415,000 449,400 449,400 TOTALS: LIQUOR NON - OPERATING 550,818 549,200 415,000 449,400 449,400 Activity Description To improve the analysis of results at each of the three stores, activity that is not a function of store operations is accounted for separately in the non - operating department 49794. These nonoperating activities routinely include acquisition of equipment over $5,000; construction of building or parking lot improvements; debt service; and transfers to other city funds. Objectives The main objective for this department for 2019 is to continue funding other departments at a level consistent with prior years: The Infrastructure Fund 430 at $50,000. This supports the key element of strong infrastructure in the Columbia Heights Vision stated within the City Council's 2017 goal- setting report. D.A.R.E. and other police community programs at $10,000 within the General Fund, which is an increase of $1,000 over prior years. This supports the key element of safe community within the Columbia Heights Vision stated in the City Council's 2017 goal- setting report. Budget Comments on Proposed Budget The budget for this department is $34,000 or 8% higher for 2019 than for 2018. In 2018, funds previously placed in escrow were used for a portion of 2018 debt service, reducing the amount required from this department for 2018. Factoring out that one -time transaction, the 2019 budget for this department is almost $100,000 or 18°Y less than in years prior to 2018. This primarily reflects the reduced interest rate obtained by refinancing in 2017, but it is also due to some operational improvements requiring less administrative labor. 78 City of Columbia Heights, Minnesota BUDGET 2019 Police Revenue 30999 Taxes 31999 Licenses & Permits 32999 Intergovernmental 33999 Charge for Services 34999 Fines & Forfeits 35999 Miscellaneous 36999 Sales and Related Charges 39199 Transfers & Non Rev Receipts Total Revenue Expenses 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers Total Expenses Police Capital Police Equipment 101 431 3,846,225 - 37,000 - 521,804 16,547 270,000 - 51,000 34,372 15,886 10,000 2,648 4,770,401 35,081 4,205,500 - 175,400 203,000 456,900 - - 108,700 41837,800 311,700 Change to Fund Balance - 67,399 - 276,619 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: POLICE 101 GENERAL Actual Actual Adopted Department City Manager Council 42100 POLICE Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 1 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services 3,469,493 3,789,883 4,054,297 4,205,500 4,205,500 1999 Supplies 124,723 131,164 181,300 175,400 175,400 2999 Other Services & Charges 313,060 361,410 427,082 456,900 456,900 4999 Capital Outlay - 414 - - - 6999 Contingencies & Transfers - - - _ TOTALS: POLICE 3,907,276 4,282,871 4,662,679 4,837,800 4,837,800 Activity Description This is the general budget for day -to -day operations in the Police Department, including personnel costs, general supply costs, and other services and charges. The Police Department provides public safety and crime prevention services to the citizens of Columbia Heights and Hilltop. This includes police patrol, investigations, community policing activities, the Street Crimes unit, a Drug Task Force officer, School Liaison Officers (Dist. #13), traffic enforcement, code enforcement, and administration. Objectives The Police Department's Mission Statement is: The Columbia Heights Police Department is committed to active partnerships with the community in order to protect life and property, innovatively solve problems, and enhance the safety and qualify of life in the communities we serve. Each year, the Police Department participates in planning to develop a Strategic Plan for the coming year. The strategies, objectives and action plan outlined in that plan form the framework for the department's activities in the areas of Problem Oriented Policing, Community Oriented Policing /Partnerships and Communication, Accountability, and Training. Further, budgetary planning and spending decisions are based on this plan, particularly in terms of resource allocations, spending for community - related programs, and training. Police Budget Comments Continued on Next Page 80 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Police Budget Comments Continued udget Comments on Proposed Budget The Police Department's proposed 2019 budget comes in at $4,837,800, a 3.8% increase, which is in keeping with the City's overall proposed budget. Personnel: Because contracts for 2019 are not yet in place, personnel costs for all employees were calculated based on 2018 contract amounts, plus expected movement through salary and longevity steps. Line item 1020 Overtime was increased to $120,000 to bring it more in line with actual costs. An additional amount of $150,500 was included in line item 1810 as anticipated COLA increases. Supplies: Most changes in the Supplies section are minor ones, taking into account the previous years' actual expenditures. Most notable was a decrease in the line item 2282 Gas, Oil, Lubricants, which was decreased by $8,000 from 2018. This resulted in a decrease of about $6,000 from last year's total in this section. We are budgeting for the replacement of seven computers, per the IS department's recommendations. Other Services and Charges: Line item 3050 Expert and Professional Services sees an increase again this year to reflect anticipated expenses in line with 2017 expenditures of almost $81,000. Our share of the Public Safety Data System is leveling off somewhat; our expense for 2019 is expected to be about $40,000. Line item 3105 Training and Educational Activities is being budgeted at $28,000, up $1,000 from last year's budgeted amount and in line with 2017 actual expenditures and anticipated training needs. Line items 3105 Training and 3320 Out of Town Travel Expense include amounts to cover the costs of two department personnel to attend the IACP (International Association of Chiefs of Police) Conference. The IACP Conference features training on industry best practices as well as information on current and future policing trends, and the opportunity to network with professionals experienced in managing police agencies. This important training is critical to providing police administrators with information that can be used to help identify future trends in crime issues and shape future strategic initiatives. Line item 4100 Rents and Leases includes an expenditure of $19,395 to cover the cost of body worn cameras, an amount that was initially included in 2018 after an extensive review of the body worn camera options concluded that the leasing program offered through Taser International is best suited to our needs for the next five years. 2019 will be the second year of that five -year program. The result of this equipment lease and storage solution will be a budget increase as the cost is predictable, there is an ongoing expense, and the expense is appropriately positioned within the regular budget as opposed to Capital Equipment. 81 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: POLICE CAPITAL EQUIPMENT 431 42.100 GENERAL POLICE CAPITAL EQUIPMENT nse E2011 ual Actual Expense 1 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services - 1999 Supplies 26,821 2999 Other Services & Charges - 4999 Capital Outlay 131,749 6999 Contingencies & Transfers - TOTALS: POLICE CAPITAL EQUIPP 158,570 Activity Description 22,131 60,296 203,000 203,000 112,404 77,650 108,700 108,700 134,534 137,946 311,700 311,700 The Capital Equipment budget for 2019 includes: The purchase and set -up of two marked vehicles and one unmarked vehicle Forty Motorola 800mhz portable radios (including one for City Hall Varda) and Two multiple unit chargers Objectives The Police Department's objectives as they relate to Capital Equipment are to obtain and maintain vehicles and capital equipment in a way that meets the needs and requirements of the department, while utilizing best practices to obtain the highest value and affordability. Police Capital Equipment Budget Comments Continued on Next Page 82 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Police Capital Equipment Budget Comments Continued , Budget Comments on Proposed Budget Vehicles: As a part of the Police Department Capital Equipment replacement plan to maintain a safe and dependable vehicle fleet, the Police Department requests authorization to purchase two Ford Police Interceptor patrol vehicles and one unmarked vehicle. The purchase of two marked squad cars per year allows the department to keep the fleet in better working order, and aids in controlling costs on replacement parts. This also allows the marked squads to be rotated out of the police fleet after four years of service, and rotated into another department in the city, who in turn get a better operating vehicle for conventional uses. The police department is budgeting for the purchase of two Ford Utility vehicles this year. Ford has announced that they plan to discontinue production of the Taurus sedan. The advantages presented by the Utility include the added space for occupants and gear, and it offers increased maneuverability in poor weather conditions. The added room is used to better store and carry police equipment and supplies to include entry tools, first aid equipment and tactical gear. In addition, the increased size of the passenger compartment in the Utility vehicle offers better room and comfort for our larger statured officers. The vehicle will be purchased from the dealership awarded under the State of Minnesota Cooperative Purchasing Venture (CPV) In addition, the police department is budgeting to replace one unmarked vehicle in 2019. The vehicle scheduled for replacement is a 2009 Chevy Impala with over 55,300 miles on it. The age and mileage make this an inadequate vehicle for public safety use. The police department has determined the Ford Explorer vehicle to be an excellent fit for police work through the use as a patrol car and feel these qualities will extend to an unmarked vehicle as well. As a result, we are budgeting for a 2019 Ford Explorer, or similarly priced and equipped vehicle, listed on the CPV. This vehicle has comparable pricing and fuel economy when compared to past vehicle purchases, and is roomier and better equipped to carry needed police equipment. The police department is budgeting to purchase the following vehicles: 2 - 2018 Ford Police Interceptor Utility vehicles $27,393.45 e- 1 - 2018 unmarked Ford Explorer or similar $26,096.46 Total (rounded) $81,000 The police department is also budgeting to expend up to $36,700 for outfitting and setting up these vehicles for patrol use. This amount includes the standard set -up as has been done in the past, plus the purchase of necessary equipment for the squads including laptop computers. The squad outfitting will be awarded to the vendor listed on the State of MN CPV or a comparable vendor. The amount is less per vehicle than in previous years due to the department being able to reuse equipment that is still serviceable from the SUV's that are coming out of service as patrol vehicles. The total budgeted for squad cars and set -up in 2019 is $117,700. Radios: The police department has been notified by Anoka County Radio that the current generation of police portable radios we have in use are going end -of -life and will no longer be supported effective December, 2019. In addition, the current listening technology has made police radio communications easily monitored by the public. The encryption of the radios will allow radio communications to be made private; which increases officer safety and police effectiveness. The police department is budgeting capital to replace the portable radios for police, community service officers and reserves. These radios will be purchased through Anoka County and will utilize the vendor listed on the CPV. The total budgeted for replacement portable radios in 2019 is $194,000. 83 - This page intentionally left blank - 84 C L m ,n ri � O O D O LL 'n rI L O m CL Ln 00 0 rn , - o . 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E is = CL �- U 0a a S p •5 a Co h0 C C 7 m 0 C cx a! a U v Im Ln w lD N V1 tD r-I Ln tD W m M tt l N e-I r-I !-I ei Ln 0 1 � O V O V OI V V O O w Gs7 O O O O CQ S N N V1 O Ln M N N M M i O O O O n O O O O p lL6D tMD lMD N O O O 0 0 0 O 0 o O to o v1 Ln O O o O O O 00 N O O O , IO , , �. 0 1n c c Ln c N r% 00 N Ln n r0'I N dkD Ln O O O O O cn 0 0 01 a0 '-R 'I O G Ln C C V1 01' N 00 O Q GG.i Ln O 1D 0 O O Ln O r Q1 m 01 M 0 O O 00 O R G G M M I, n I Ln O O Ln a) Ln Ian cn Ln N o V1 rl Ln I� N N l r-I r, e-I 01 O 0) tD tD M N N 4* ri N N N N N r4 O O O O Ln 0 0 0 0 M O V1 O V1 c CO Ln V1 O P N CO 1- N 1. 4 01 tD a--I -�F tD O1 N N N n 00 tD tD N -1 N C M O E L u c O > E� o u a2f e a a Y - `@ °u' W ar E awi w z v I'o v a o i "' t � o2f +J " �` y a 4J a� O LL in 7 C t o H V Q v > O aJ t0 oiS C ro al �a Vf '^ c ar `^ m a ,� o c M r o 5 m u v t ar c �' ``° 3 a v a Y ni o '�" P a v CC _, u � In d W D_ Ln 0 U U LL. a v Q rn m m rn m rn rn rn 21 ar D, (3) D, D, D, CL .. 0) 0) 0) 0) 0) 0) 0) ai rn rn rn rn 0, x IL y D1 O Dl .-I D1 N D1 m m m M a) .-i tD M D1 D1 m m m O r-I N� tD 0a C m m m m m m m m v ►°- 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: ENGINEERING 101 431001 GENERAL ENGINEERING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: ENGINEERING Activity Description 353,548 249,767 322,028 310,930 310,930 22,012 14,222 15,000 15,500 15,500 84,670 117,621 56,137 57,400 57,400 33,791 99,817 10,000 13,859 8,624 - - - 507,880 490,051 403,165 383,830 383,830 This department provides engineering services for public improvement projects. These activities include feasibility analysis, construction design, assessments, construction contract administration and project inspection. It also includes project management for engineering consultant or JPA projects. The administration of the NPDES Phase IV requirements is performed by Engineering; TMDL reporting to the State; and all responsibilities of assessing department and its functions. Other activities include general engineering, technical and public record keeping, GIS implementation, digital and hardcopy of file maintenance, and public contact. Objectives 1. Continue the annual update and development of the computerized pavement management program for street zone work including street ratings and analysis. 2. Continue updating of GIS software for automation of utility records, maintenance and complaint tracking program at Public Works. 3. Implementation of NPDES Phase IV requirements along with TMDL implementation measures and reporting. 4. Continue updating and sharing of other database sources for increased accuracy of owner information, including GIS. 5. Implement updated 20 -year plan for the Street Rehabilitation Program. 6. Continue the review and maintenance strategies for state -aid streets. Budget Comments on Proposed Budget The proposed 2019 Engineering budget is $383,830 a 4.8% or 19,335 decrease from the 2018 budget. Major sections and items contributing to the increase: 1. Personnel decreased by $11,098. 2. Capital outlay decreased by $10,000 as there are no Cap Outlay requests for 2019. 3. Other line items of the budget have remained flat or had reductions. E.3 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 Activity Description The street department provides for the maintenance of city Rights -of -Ways including streets, alleys and storm sewer. These services include patching, surface repairs, minor bituminous paving, street sweeping, snow plowing and removal, ice control, miscellaneous projects as required, and public contact. The maintenance of public storm sewers and ponds is also included in the street department to manage portions of the Federal NPDES and State MS4 requirements. .,bjectives 1. Review the alley maintenance program for both bituminous and concrete alleys. 2. Continue crack sealing asphalt streets in prior street rehab zones, in advance of seal coating. 3. Continue street repair /patching in prior zones of the street rehab program. 4. Continue evaluation of new equipment such as brine and the application rates of treated salt for salt use reduction and street ice control cost effectiveness. Budget Comments on Proposed Budget The overall 2019 budget for the Street Department is $903,834, a 1.3% or $11,665 increase from 2018. Major line items contributing to the increase: 1. Personnel increased by $19,746 to account for COLA increases and step system movements. 2. Supplies decreased by $10,775 in areas of vehicle maintenance and construction materials and fuel; other areas of the Streets budget remain relatively flat. M DEPARTMENT: STREETS 101 GENERAL Actual Actual Adopted Department City Manager Council 43121 STREETS Expense 2016 Expense 2017 Budget 2018 Proposed 2019 Proposed 2019 Adopted 2019 Line Item Description 0999 Personal Services 445,910 449,449 549,188 568,934 568,934 1999 Supplies 116,543 103,396 149,625 138,850 138,850 2999 Other Services & Charges 163,506 226,549 193,356 192,550 192,550 4999 Capital Outlay 55,050 - - 3,500 3,500 6999 Contingencies & Transfers - - - - - TOTALS: STREETS 781,010 779,394 892,169 903,834 903,834 Activity Description The street department provides for the maintenance of city Rights -of -Ways including streets, alleys and storm sewer. These services include patching, surface repairs, minor bituminous paving, street sweeping, snow plowing and removal, ice control, miscellaneous projects as required, and public contact. The maintenance of public storm sewers and ponds is also included in the street department to manage portions of the Federal NPDES and State MS4 requirements. .,bjectives 1. Review the alley maintenance program for both bituminous and concrete alleys. 2. Continue crack sealing asphalt streets in prior street rehab zones, in advance of seal coating. 3. Continue street repair /patching in prior zones of the street rehab program. 4. Continue evaluation of new equipment such as brine and the application rates of treated salt for salt use reduction and street ice control cost effectiveness. Budget Comments on Proposed Budget The overall 2019 budget for the Street Department is $903,834, a 1.3% or $11,665 increase from 2018. Major line items contributing to the increase: 1. Personnel increased by $19,746 to account for COLA increases and step system movements. 2. Supplies decreased by $10,775 in areas of vehicle maintenance and construction materials and fuel; other areas of the Streets budget remain relatively flat. M CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STREET LIGHTING 101 43160 GENERAL STREET LIGHTING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1,219 567 6,186 6,701 6,701 1999 Supplies - 1,005 1,000 1,000 2999 Other Services & Charges 142,688 147,969 153,641 161,900 161,900 4999 Capital Outlay • _ - _ 6999 Contingencies & Transfers - - - _ TOTALS: STREET LIGHTING 143,907 148,536 160,832 169,601 169,601 Activity Description This activity provides for the energy costs related to intersection, mid - block, and alley lighting. This activity also includes maintenance and repair of city -owned street lights. Objectives 1. Research funding and grant opportunities for the extension of the street lighting program on Central Avenue including State and Federal funding sources. 2. Review city -owned street lighting for upgrades, replacement or as a minimum, needed repairs. 3. Evaluate replacement of city -owned and maintained lights in Labelle, Sullivan and Prestemon Parks. 4. Initiate review /evaluation of retrofitting city -owned street lights to LED's. Budget Comments on Proposed Budget The 2019 proposed Street Lighting budget is $169,601 an increase of 5.5% or $8,769 from 2018. 1. Electric costs are projected to increase by $5,772 from 2018 budgeted amounts due to an Xcel rate increase and additional street lights. 2. Repair and Maintenance Services increased by $2,387 to account for increased repairs to city -owned lights. .o CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: TRAFFIC SIGNS & SIGNALS 101 43170 GENERAL TRAFFIC SIGNS & SIGNALS Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department City Manager Proposed Proposed 2019 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: TRAFFIC SIGNS & SIGNALS Activitv Descriotion 68,491 61,339 65,100 71,597 71,597 13,554 7,448 14,260 16,000 16,000 13,616 12,379 18,952 19,200 19,200 95,661 81,166 98,312 106,797 106,797 This activity provides for the installation and maintenance of city- owned signs and traffic signals identified under MNDOT or county agreements. This department also provides for street striping, curb and parking lot striping and traffic counting. -jbjectives 1. Update the physical coordinate location (GPS'ing) and development of a computerized sign inventory. 2. Continue Federally mandated Traffic Sign Maintenance Program (TSMP) approved in 2014. 3. Continue programmed replacement of regulatory signs in street rehab zones consistent with the TSMP plan. 4. Continue upgrading regulatory signs to high intensity -VIP diamond grade on State Aid Streets project work areas. 5. Continue repainting of Trunk Highway signals for proper maintenance and improved appearance on Central and University Avenues. Budget Comments on Proposed Budget The overall budget proposed in 2019 is $106,797 a 8.6% or a $8,485 increase from the 2018 adopted budget. Major line items contributing to the increase: 1. Personnel increased by $6,497 to account for COLA increases and step system movements 2. Other services and charges increased by $1,740 due to increases in supplies. 3. Other line items of the budget have decreased or remained relatively flat to maintain minimal budget increases. 91 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET2019 DEPARTMENT: PARKS 101 45200 GENERAL PARKS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 547,892 583,788 631,683 654,370 654,370 1999 Supplies 88,626 78,775 89,725 86,300 86,300 2999 Other Services & Charges 249,676 229,928 236,634 247,850 247,850 4999 Capital Outlay 16,513 13,564 - 3,500 3,500 6999 Contingencies & Transfers 1,114 945 1,000 1,000 1,000 TOTALS: PARKS 903,820 906,999 959,042 993,020 993,020 Activity Description This activity provides for the maintenance of: A. 15 city parks B. 2 public wading pools C. 3 skating and 3 hockey rinks; D. 12 softball /baseball diamonds E. 2 tennis courts F. 12 buildings and other recreational facilities G. All park trails. H. Landscape maintenance for all municipal buildings, other city -owned properties, public art areas, easement areas, and the planning, implementation and construction of various park improvements. I. 1 splash pad J. 3 -1/2 basketball courts Objectives 1. Support the Park & Recreation Commission in their evaluation for the possible consideration of a citywide referendum for park improvements. 2. Continue investigating potential State Grant and other funding for park redevelopment, focusing on future wading pool replacement and park redevelopment. 3. Continue Master Planning for parks and engage public input /review process. 4. Continue to improve the condition of plantings in parks and public monuments for improved appearance. 5. Improve the turf condition of athletic fields - including drainage and weed control. Budget Comments on Proposed Budget The 2019 Parks proposed budget is $993,020, an increase of 3.5% or $33,978, from the 2018 adopted budget. Major line item increases include: 1. Personnel increased $22,687 to account for COLA increases, step system movements. 2. Water increased by $11,000 to account for actual water usage in the parks. 3. Other line items of the budget have decreased or remained relatively flat to maintain the minimal budget increase. 92 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: URBAN FORESTRY 101 46102 GENERAL URBAN FORESTRY Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: URBAN FORESTRY Activity Description 66,062 61,062 83,644 115,541 115,541 4,780 2,219 5,935 6,400 6,400 75,658 81,072 83,062 85,800 85,800 146,500 144,353 172,641 207,741 207,741 This activity provides for tree trimming, removal of hazardous, diseased, or dead trees (on city -owned properties except for parks), and replanting of new trees. It includes trimming, shaping and maintaining boulevard trees in a healthy condition, removal of downed branches, and clearing obstructed signs. It also provides for disease eradication, hazardous tree inspections, corner visibility, and brush in the alley inspections. An Emerald Ash Borer (EAB) Program was approved by the Council in 2014 to proactively manage the threat of EAB. This activity also provides inspection and removal of diseased Elm, Oak, and Ash trees on private property. The City continues to pay 25% of the City contractor's removal cost leaving the property owner to pay 75 %. Jbjectives 1. Continue the EAB Program established for the treatment of city owned Ash trees consistent with the approved EAB Plan, now that EAB is confirmed in the City. 2. Concentrate on boulevard tree trimming by residential street rehabilitation zones. 3. Trim sidewalk and street sign locations, focusing on Street Rehab Zone work. 4. Contractual trimming at parks with paved walking paths to maintain safe pathways. 5. Focus management of the tree inspection program to maximize eradication, control the spread of tree diseases, and impose safety with limited funding. 6. Foster the growth of the trees and plantings along the Huset Parkway area and University service drive (40th- 45th). 7. Care and development of newly planted trees at the new Library. Budget Comments on Proposed Budget The proposed 2019 Tree Care and Maintenance budget is $207,741 an increase of 20% or $35,100 from the adopted 2018 budget. Major line items contributing to the increase: 1. Personnel increased $31,897 to account for COLA wage increases and market rate adjustments. 2. A part time position in the amount of $24,472 was added to provide the DED and EAB tree programs, brush in the alley and hazardous tree program. 3. Repair and Maintenance Services increased by $3,000 for tree removal services. 93 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STATE AID MAINTENANCE 212 43190 STATE AID MAINTENANCE STATE AID MAINTENANCE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 I City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 72,579 89,780 76,470 83,141 83,141 1999 Supplies 4,588 4,100 15,670 17,950 17,950 2999 Other Services & Charges 110,547 434,572 113,207 119,550 119,550 4999 Capital Outlay 17,472 132,178 25,000 26,250 26,250 6999 Contingencies & Transfers - - _ - TOTALS: STATE AID MAINTENANCE 205,186 660,631 230,347 246,891 246,891 Activity Description This activity provides for the maintenance and repair of state aid streets and ROW as designated within the City and is funded by the Municipal State Aid system. UUjecuves 1. Review route designations and recommend any changes to the MSA system. 2. Continue the implementation of the 5 -year Capital Improvement Program, originally developed in 1999, and periodically updated, as part of the certified status of local streets. 3. Maintain 'certified' complete status for our local MSAS; inspected and recertified by MNDOT every two years, which provides funding for our local roads. 4. Integrate street ratings performed in 2013/14 into the City pavement management system to update the S -A CIP. 5. Crack seal state aid streets (Joint Multi -City contract) buoget Comments on Proposed Budget IThe proposed 2019 budget is $246,891 an increase of $16,544 or 7.2% from 2018. 1. Personnel increased $6,671 to account for COLA increases and step system movements 2. Capital Outlay increased by $1,250 for the replacement of backlit street signs on Central Avenue. 3. Other line items of the budget have decreased or remained relatively flat to maintain a modest budget increase. 94 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 nFPARTMENT- STATE AID GEN'L CONSTRUCTION 212 43191 STATE AID MAINTENANCE STATE AID GENT CONSTRUCTION Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services - - 1999 Supplies - - 2999 Other Services & Charges - - 4999 Capital Outlay 130,000 95,000 95,000 6999 Contingencies & Transfers - TOTALS: STATE AID GENT CONSTRU( 130,000 95,000 95,000 Activity Description Extensive program of crack sealing SA Streets and replace existing backlit street name signs with new LED signs. Objectives Extensive program of crack sealing SA Streets and replace existing backlit street name signs with new LED signs. Budget Comments on Proposed Budget Extensive program of crack sealing SA Streets and replace existing backlit street name signs with new LED signs. 95 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STATE AID CONSTRUCTION 402 STATE AID CONSTRUCTION Actual Actual Adopted Department City Manager Council 43191 STATE AID GEN'L. CONSTRUCTION Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services _ 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers 477,525 403,622 TOTALS: STATE AID CONSTRUCTION 477,525 403,622 Activity Description C 450,000 1,570,000 1,570,000 45 0, 000 1,570,000 1,570,000 This fund is used for capital improvement projects on the City's municipal state aid streets. In 1999, the City was asked by the Office of State Aid to provide a detailed five year program, explaining how Columbia Heights plans on spending down its excessive MSA.fund balance. Consistent with that request, a 5 -year plan was developed and updated on 5 -year cycles. ectives IContinue rating of State Aid Streets for annual rehabilitation and /or major repair projects as needed. Budget Comments on Proposed Budget Continue rating of State Aid Streets for annual rehabilitation and /or major repair projects as needed. CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAPITAL IMP POLICE 411 42 100 CAPITAL IMP GEN GOV BLDG. POLICE Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies - - 2999 Other Services & Charges 1,200 - 19,000 4999 Capital Outlay - - _ 6999 Contingencies & Transfers - - - TOTALS: CAPITAL IMP GEN GOV BLDG. 1,200 - 19,000 - Artivitv np- rrintinn Fund 411 was established to account for building improvements and major maintenance not included in operating budgets. The City Council has committed funds here as they have become available over time, creating a fund balance available for building improvements. Recently, the City has taken steps to incorporate building improvements and major maintenance into its Capital Improvement Program (CIP), similar to the planning process used for city infrastructure. Objectives The objective for each of the departments within fund 411 is to fund building improvements, when they are necessary, without burdening annual operating budgets to do so. Budget Comments on Proposed Budget No expenditures for 2019. 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAPITAL IMP FIRE 411 42200 CAPITAL IMP GEN GOV BLDG. FIRE Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CAPITAL IMP GEN GOV BLDG. Activity Description 1,200 - 1,200 - Fund 411 was established to account for building improvements and major maintenance not included in operating budgets. The City Council has committed funds here as they have become available overtime, creating a fund balance available for building improvements. Recently, the City has taken steps to incorporate building improvements and major maintenance into its Capital Improvement Program (CIP), similar to the planning process used for city infrastructure. Objectives The objective for each of the departments within fund 411 is to fund building improvements, when they are necessary, without burdening annual operating budgets to do so. Budget Comments on Proposed Budget No expenditures for 2019. 98 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAPITAL IMP CENTRAL GARAGE 411 49950 CAPITAL IMP GEN GOV BLDG. CENTRAL GARAGE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department' City Manager Proposed Proposed 2019 2019 Council Adopted 2019 Line Item Description 0999 Personal Services - - 1999 Supplies 2999 Other Services & Charges - - - - 4999 Capital Outlay 75,000 75,000 6999 Contingencies & Transfers - - - TOTALS: CAPITAL IMP GEN GOV BLDG. - 75,000 75,000 - Artivitv r)acrrintinn Fund 411 was established to account for building improvements and major maintenance not included in operating budgets. The City Council has committed funds here as they have become available over time, creating a fund balance available for building improvements. Recently, the City has taken steps to incorporate building improvements and major maintenance into its Capital Improvement Program (CIP), similar to the planning process used for city infrastructure. Objectives The objective for each of the departments within fund 411 is to fund building improvements, when they are necessary, without burdening annual operating budgets to do so. Budget Comments on Proposed Budget MSC building in 2019: spot masonry repairs, remove failing paint, and repaint the building. .. CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP IMP - CITY HALL 411 CAPITAL IMP -CITY HALL 41940 CITY HALL Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 30,503 -420 - 2999 Other Services & Charges - 3,375 - 4999 Capital Outlay - - - 10,100,000 10,100,000 6999 Contingencies & Transfers - - - - TOTAL: CAPITAL OUTLAY - CITY HA 30,503 2,955 10,100,000 10,100,000 Activity Description Fund 411 was established to account for building improvements and major maintenance not included in operating budgets. The City Council has committed funds here as they have become available over time, creating a fund balance available for building improvements. Recently, the City has taken steps to incorporate building improvements and major maintenance into its Capital Improvement Program (CIP), similar to the planning process used for city infrastructure. Objectives The objective for each of the departments within fund 411 is to fund building improvements, when they are necessary, without burdening annual operating budgets to do so. Budget Comments on Proposed Budget The 2017 City Council goals report established the objective of completing a master plan for city hall. The architect's report on various options under that plan was completed and issued to the City Council in 2018. As a next step under this City Council objective, the 2019 budget for this department includes the most popular option under that plan. In broad terms, this option includes the following sources and uses: Fund Balance GO Bonds Construct new city hall next to Murzyn Hall $6,000,000 $2,000,000 Update Murzyn Hall and construct connection to city hall 2,000,000 Financing costs 100,000 By adopting a budget with this item in it, the Council neither authorizes construction contracts, nor authorizes issuance of bonds. Those steps require separate Council actions and have specific additional public notice requirements. Furthermore, use of this particular Murzyn hall option as a placeholder in the 2019 budget does not prevent the City Council from ultimately choosing some other option under the master plan. 100 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP IMP GEN GOV BLDG - LIBRARY 411 CAPITAL IMP -GEN GOVT. BLDG 45500 LIBRARY Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTAL: CAP IMP GEN GOV BLDG Activity Description 31,248 12,818 - 44,066 - Fund 411 was established to account for building improvements and major maintenance not included in operating budgets. The City Council has committed funds here as they have become available over time, creating a fund balance available for building improvements. Recently, the City has taken steps to incorporate building improvements and major maintenance into its Capital Improvement Program (CIP), similar to the planning process used for city infrastructure. )bjectives The objective for each of the departments within fund 411 is to fund building improvements, when they are necessary, without burdening annual operating budgets to do so. Budget Comments on Proposed Budget No expenditures for 2019- 101 412 CAPITAL IMPROVEMENT PARKS 45200 PARKS Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CAP IMP PARKS Activity Description C 8 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP IMP PARKS Actual Actual Adopted Department City Manager Council Expense Expense Budget Proposed Proposed Adopted 2016 1 2017 1 2018 1 2019 1 2019 1 2019 10,524 - - 15,000 18,106 25,000 18,000 18,000 27,030 30,766 - - - 42,030 59,396 25,000 18,000 18,000 This activity provides for capital improvements in the City's park system, including major improvements and major repairs /replacements to park buildings, playgrounds, recreational facilities, and park amenities. ectives 1. Continued development of Master Planning in Parks selected by the Park & Rec Commission 2. Investigate funding alternatives for Parks Capital Improvements 3. Update Parks 5 -year CIP Jget Comments on Proposed Budget In 2019, develop next master plan for Wargo Court (in poor condition). 102 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: INFRASTRUCTURE FUND 430 46323 INFRASTRUCTURE FUND CAP IMP EXPENSE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 145,116 149,755 149,755 1999 Supplies - - - 2999 Other Services & Charges - 408 23,250 23,250 23,250 4999 Capital Outlay 119,173 - 110,000 400,000 400,000 6999 Contingencies & Transfers - - - - - TOTALS: INFRASTRUCTURE FUND 119,173 408 278,366 573,005 573,005 Activity Description The City's street rehabilitation program was initiated with funding from liquor funds in 1996, and with annual transfers, will perpetuate the continued investment into the maintenance and improvements of the City's streets. An additional source of revenue was secured in 2000, on a 2 -year renewable cycle, with the certification of the City State -Aid Street System, making available limited state aid funding. 2019 will focus on MSA streets. Objectives The Infrastructure Fund supports city costs to perpetuate the city -wide street rehab program. Two entire cycles of the city -wid zones has been completed. The 3rd cycle has now completed Zones 1, 2 & 3 located east of Central Avenue. 2019 will be an off year with Zone work beginning in 2020 combining Zones 4 and 5. Budget Comments on Proposed Budget The Infrastructure Fund budget for 2019 is $573,005, which accounts for the City's portion of the cost share policy for street improvements and alley replacements. 103 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAPITAL EQUIPMENT REPLACEMENT ENGINEERING 431 43100 CAP EQUIP REPLACEMENT ENGINEERING Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services - - 1999 Supplies _ 2999 Other Services & Charges - 4999 Capital Outlay 10,995 25,000 - 6999 Contingencies & Transfers TOTALS: CAP EQUIP REPLACEMENT 10,995 25,000 - Activity Description The Capital Equipment fund was established to fund long -term capital equipment needs in the General fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling of long term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when larger, more costly equipment will need to be purchased. This in turn, eliminates the highs and lows of budgeting as an equal dollar amount is set aside each year. Objectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment. Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Engineering Capital Equipment Replacement: No Capital Equipment Requests for 2019 104 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT STREETS 431 43121 CAP EQUIP REPLACEMENT STREETS Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description C 0999 Personal Services - 1999 Supplies 2999 Other Services & Charges - 4999 Capital Outlay 16,950 162,986 228,000 228,000 6999 Contingencies & Transfers - - - - TOTALS: CAP EQUIP REPLACEMENTS 16,950 162,986 - 228,000 228,000 The Capital Equipment fund was established to fund long -term capital equipment needs in the General fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling of long term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when larger, more costly equipment will need to be purchased. This, in turn, eliminates the highs and lows of budgeting as an equal dollar amount is set aside each year. ectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Streets Capital Equipment Replacement: 1. Replacement of a 1998 single axle dump truck with plow, sander and box package. Projected Cost = $ 220,000. 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 nFPARTMFNT• CAP Fn111P RFP1 ACFMCNT DAPICC 431 45200 CAP EQUIP REPLACEMENT PARKS Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CAP EQUIP REPLACEMENT PARKS Activity Description C 44,109 - 110,000 - 44,109 - 110,000 - This activity provides for the maintenance of: A. 15 city parks B. 3 public wading pools C. 4 skating and 4 hockey rinks; D. 12 softball /baseball diamonds E. 2 tennis courts F. 12 buildings and other recreational facilities G. park trails. This department also provides landscape maintenance for all municipal buildings, other city -owned properties, easement areas, and the planning, implementation and construction of various park improvements. ectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Parks Capital Equipment Replacement: No Capital Equipment requests for 2019. 106 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT URBAN FORESTRY 431 CAP EQUIP REPLACEMENT Actual Actual Adopted Departmenti City Manager Council 46102 URBAN FORESTRY Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services - 1999 Supplies 2999 Other Services & Charges - 4999 Capital Outlay - 42,150 42,150 6999 Contingencies & Transfers - - TOTALS: CAP EQUIP REPLACEMENT URBAN 1 42,150 42,150 Activitv Description The Capital Equipment fund was established to fund long -term capital equipment needs in the General fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment. Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Urban Forestry Capital Equipment Replacement: 1. Replacement of unit #40 city's wood chipper used to grind branches and small trees for disposal. The existing chipper will be disposed of by trade -in or sold at auction. Projected Cost = $42,150 107 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 C The Capital Equipment fund was established to fund long -term capital equipment needs in the Sewer fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. ectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Sewer Capital Equipment Replacement: 1. Replacement of a 1 -ton utility truck with lift gate and hoist attachment. Projected cost is split 1/2 between Sewer and Water = $27,500. 108 DEPARTMENT: CAP EQUIP REPLACEMENT SEWER 432 CAP EQUIPMENT REPLACEMENT SEWER Actual Actual Adopted Department City Manager Council 49499 NON- OPERATING Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 1999 Supplies _ 2999 Other Services & Charges 4999 Capital Outlay _ 6999 Contingencies & Transfers 61,845 TOTALS: CAP EQUIP REPLACEMENT SEWER 61,845 Activity Description C The Capital Equipment fund was established to fund long -term capital equipment needs in the Sewer fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. ectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Sewer Capital Equipment Replacement: 1. Replacement of a 1 -ton utility truck with lift gate and hoist attachment. Projected cost is split 1/2 between Sewer and Water = $27,500. 108 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT WATER 433 49449 CAP EQUIP REPLACEMENT WATER NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services - - 1999 Supplies - - 2999 Other Services & Charges - - - 4999 Capital Outlay - - 6999 Contingencies & Transfers 141,845 TOTALS: CAP EQUIP REPLACEMENT WATER 141,845 - Grtivity narrrintinn The Capital Equipment fund was established to fund long -term capital equipment needs in the Water fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. Ajectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment. Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Water Capital Equipment Replacement: 1. Replacement a 1 -ton utility truck with lift gate and hoist attachment. Projected cost is split 1/2 between Sewer and Water, cost = $27,500. 109 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT GARAGE 434 49950 CAP EQUIP REPLACEMENT GARAGE Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services _ 1999 Supplies 2999 Other Services & Charges - 4999 Capital Outlay 6999 Contingencies & Transfers - TOTALS: CAP EQUIP REPLACEMENT GARAGE - Activity Description C The Capital Equipment fund was established to fund long -term capital equipment needs in the Garage fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. ectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment. Budget Comments on Proposed Budget Item & Projected Cost The following requests have been made for Storm Sewer Capital Equipment Replacement: No requests for 2019 110 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EOUIP REPLACEMENT STORM SEWER 438 CAP EQUIP REPLACEMENT STORMS 49699 NON - OPERATING Actual Expense 2016 Actual Adopted Department Expense Budget Proposed 2017 2018 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: CAP EQUIP REPLACEMENTS' Activitv Description 35,017 - - 35,017 The Capital Equipment fund was established to fund long -term capital equipment needs in the storm sewer fund. This was accomplished by preparing a detailed 20 -year projection of the City's equipment needs and scheduling long -term replacement. Thus, the City can set aside an equal amount of funding to provide a reserve for future years when large, more costly equipment will need to be purchased, eliminating the highs and lows in budgeting as an equal amount is set aside each year. Objectives To maintain the Public Works fleet of vehicles and equipment while evaluating equipment use and condition to maximize the service life of each piece of equipment. Budget Comments on Proposed Budget No requests for 2019- 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 1'1FRARTMCNT• WATER I ITII ITV cm iorC ne el loos v 601 49400 WATER UTILITY SOURCE OF SUPPLY Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: WATER UTILITY SOURCE C Activity Description 1,426,460 1,546,326 1,386,733 1,426,460 1,546,326 1,386,733 1,575,000 1,575,000 - 1,575,000 1,575,000 - This department covers potable water purchased from the City of Minneapolis for resale to the residents of Columbia Heights. Amounts will vary from year to year based upon demand. In 2004,the City entered into a long -term contract with the City of Minneapolis establishing rates for the next 30 years. The contract was updated in 2014 based on an updated Cost of Service Study as prescribed in the contract. 1. The third utility rate study will complete in 2019 with the last year of recommended utility rates. Implementation - continue to monitor revenue vs. expense forecasts from 2018 recommendations. 2. Continue valving /isolation and directional flushing of our system zones distribution piping to improve water quality issues. 3. Continue to participate in the Minneapolis Water Advisory Board with other cities provided drinking water by the MWW. Budget Comments on Proposed Budget The estimated cost of water purchased from the City of Minneapolis is $1,575,000, projecting a 2% increase from 2017 actual. Staff estimates annual consumption based upon past usage and the contract rates with Minneapolis. In recent years we have been experiencing a slight decline in water consumption throughout the City. 112 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: WATER UTILITY DISTRIBUTION 601 49430 WATER UTILITY DISTRIBUTION Actual Actual Expense Expense 2016 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line it, Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: WATER UTILITY DISTRIBUTION Activity Description 344,887 385,292 74,402 65,978 553,187 511,720 25,000 25,000 997,476 987,990 428,124 408,283 408,283 93,620 92,250 92,250 525,985 528,850 528,850 35,500 36,000 36,000 25,000 30,000 30,000 1,108, 229 1,095,383 1,095,383 This activity provides for the operation and maintenance of the City's entire water distribution system, including the water tower, water mains, hydrants, valves, meters, pump stations (2), sprinkler systems (3), and providing locate services for city utilities as required by the Gopher State One Call system. Jbjectives 1. Continuation of the annual watermain cleaning and lining program, performed cooperatively with the City of Minneapolis to improve water quality and flow. 2019 will be in the SE quad of the City 2. Update the next three year Cleaning and Lining Program approved in 2014 and initiated in 2015, (2017 & 18 off years). 3. Continue tracking and documenting water quality complaints and develop remedial response alternatives. 4. Perform C- factor testing on segments of water system to develop the next 3 yr. program area of cleaning and lining. 5. Maintain system by leak detecting, testing water samples, repair water main breaks, pumps, valves hydrants, etc. 6. Continue and refine our directional hydrant flushing program. Budget Comments on Proposed Budget The proposed 2019 budget is $1,095,383 a decrease of 1.2% or $12,846 from the 2018 adopted budget. Major line items contributi to the decrease: 1. Personnel decreased $19,841 based on actual time spent in the department. 2. Increases in employee training (new/ inexperienced staff). 3. Transfer to the Capital Equipment Replacement Fund increased by $5,000 to fund equipment replacements 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 nFPARTMFNT- WATER 11TH ITV NAN_nPFRATINr. 601 49449 WATER UTILITY NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Department Budget Proposed 1 2018 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay - - - - _ 6999 Contingencies & Transfers 268,000 162,000 145,000 78,000 78,000 TOTALS: WATER UTILITY NON - OPERATING 268,000 162,000 145,000 78,000 78,000 - Activity Description This budget primarily accounts for transfers to the Water debt service fund. uujectives This budget primarily accounts for transfers to the Water debt service fund. Budget Comments on Proposed Budget This budget primarily accounts for transfers to the Water debt service fund, $78,000 budgeted for 2019. 114 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SEWER UTILITY COLLECTIONS 602 49450 SEWER UTILITY COLLECTIONS Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: SEWER UTILITY COLLECTIONS Activitv Description 180,046 274,165 264,903 348,035 348,035 27,468 52,175 54,820 54,950 54,950 273,409 312,001 328,591 333,150 333,150 - - 4,500 6,000 6,000 25,000 25,000 25,000 30,000 30,000 505,923 663,340 677,814 772,135 772,135 This activity provides for the operation and maintenance of the City's sanitary sewer collection system. Included in this activity are inspections and repairs of manholes, trunk and main sewer lines, lift stations (4) and the SCADA system operation. Annual sewer flows are between 500 and 550 million gallons to MCES treatment facilities. Obiectives 1. Analyze 1/1 program effectiveness to concentrate on the Collection District with the highest return for the removal of clear water flows in our collection system - in response to the MCES' Ongoing 1/1 Program. 2. Continue aggressive sanitary sewer cleaning program on a 3 -year repeating cycle city -wide, and trouble lines - annually. 3. Continue sanitary sewer system evaluations through the new televising and reporting program. 4. Continue annual sanitary sewer lining program. 5. Continue manhole inspections with televising inspection reports resulting in the rehab of existing sewer line structures throughout the City. 6. Continuation of the private line inspection program in 2019 as part of our 1/1 Program. Budget Comments on Proposed Budget The 2018 budget included a one -time allocation of $110,000 of fund 602 sewer staff time to projects in water construction fund 651. After factoring out this one -time use of sewer staffing in the water fund, the net change for the 2019 budget for fund 602 Sewer Collections department #49450 is a decrease of $15,700 or 2 %. This reflects some new hires in the department at lower salary steps and minor allocation of labor to other public works departments for 2019. 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 602 SEWER UTILITY 49480 DISPOSAL Line Item Description Actual Expense 2016 DEPARTMENT: SEWER UTILITY DISPOSAL Actual Adopted Department Expense Budget Proposed 2017 2018 2019 City Manager Council Proposed Adopted 2019 2019 0999 Personal Services _ _ 1999 Supplies 974,360 1,053,318 1,101,725 1,133,800 1,133,800 2999 Other Services & Charges _ _ _ _ - 4999 Capital,Outlay - - _ 6999 Contingencies & Transfers _ TOTALS: SEWER UTILITY DISPOSAL 974,360 1,053,318 1,101,725 1,133,800 1,133,800 Activity Description This department provides for fees paid to the Metropolitan Council Environmental Services for sewage treatment disposal. Costs will vary from year to year based upon flows. Objectives Rates from the MCES have consistently shown increases over the last decade. Rates began climbing in 2014 and it is anticipated that rates will continue to increase by 3.5% to 5.5% over the next several years. Budget Comments on Proposed Budget The proposed 2019 Sewage Disposal budget is $1,133,800. This represents a $32,075 or a 2.9% increase from 2018 budgeted. Staff estimates annual consumption based upon past usage and projected increases from MCES. 116 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SEWER UTILITY NON - OPERATING 602 49499 SEWER UTILITY NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager' Proposed 2019 Council Adopted 2019 _ Line Iter Description 0999 Personal Services - - - 1999 Supplies - - - 2999 Other Services & Charges - 4999 Capital Outlay - - - - 6999 Contingencies & Transfers 40,000 240,225 62,000 79,000 79,000 TOTALS: SEWER UTILITY NON - OPERATING 40,000 240,225 62,000 79,000 79,000 - Activity Description This budget primarily accounts for transfers to the Sewer debt service fund. Sewer bonds outstanding are from the 2013 bond issue. Objectives This budget primarily accounts for transfers to the Sewer debt service fund. Budget Comments on Proposed Budget This budget primarily accounts for transfers to the Sewer debt service fund, with $79,000 budgeted for 2019. 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: REFUSE DISPOSAL 603 49510 REFUSE FUND REFUSE DISPOSAL Actual Expense 1 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: REFUSE DISPOSAL Activity Description 1,641,239 1,674,172 1,929,000 1,703,400 1,703,400 1,641,239 1,674,172 1,929,000 1,703,400 1,703,400 - Contracted costs and billings for refuse, single sort recycling, yard waste collection, and disposal are separated and accounted for in this department to enable tracking of actual costs for the contract, and to facilitate accurate reporting to state and county agencies as required. The City negotiated a five -year contract with Waste Management through December 2022. Under this contract, the hauler provides all households and multi - dwelling properties with garbage carts, dumpsters, yard waste /organics, and single sort recycling. Residents may request a change of service level by calling city staff, which bills the properties for refuse service. Ubjectives 1. Promote responsible waste practices, through training and education, to reduce municipal solid waste tonnages and the resulting tipping fee costs. 2. Provide cost - effective options for disposal of problem items. 3. Publicize the disposal options available for residents. 4. Introduce a curbside bulk donation /recycling program into the full service collections. 5. Execute Solid Waste Management plans and procedures as described in the City Solid Waste Management Operations Policy, Budget Comments on Proposed Budget The Refuse Disposal Budget is $1,703,400 an 11.7% decrease of $225,600 from 2018. This decrease reflects a 6% decrease in general recycling hauling services from 2018 due to the decision not to conduct weekly single - sort collections, which was budgeted for 2018. This decrease also reflects an average 2% lower prices with the new contract as compared to 2017 (with the previous contract) and 4% lower trash disposal costs due to expected reduction in refuse that is incinerated at the Anoka County mandated RTF facility. The Refuse line item #2910 accounts for both Contractor service costs and tipping fees for disposal of solid waste. Typically 40% of the total is tipping fees and 60% is contractor charges. 118 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: REFUSE COLLECTION & DISPOSAL 603 49520 REFUSE FUND REFUSE COLLECTION AND DISPOSAL Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 1 Council Adopted 2019 Line Item Description 0999 Personal Services 54,196 49,675 46,646 47,497 47,497 1999 Supplies 80 128,621 534 550 550 2999 Other Services & Charges 60,499 64,703 26,933 28,700 28,700 4999 Capital Outlay - - - - - 6999 Contingencies & Transfers 39,049 40,200 41,811 41,900 41,900 TOTALS: REFUSE COLLECTION & DISPOSAL 153,824 283,199 115,924 118,647 118,647 Activitv Description This activity manages the total refuse collection and disposal program and includes expenses other than the contract costs. Contracted costs are separated for clarity in tracking and reporting; however, they do remain a function of this budget as a whole. Objectives 1. Manage the total refuse collection and disposal operations and the hauler performance of contract. 2. Resolve property owners and residents service issues. 3. Encourage a greater use of the low- volume option for those who require only the very basics in disposal services. 4. Work with owner /managers /caretakers and tenants of multi -unit facilities and rental properties to provide all the disposal sei they need in the most cost - effective manner, thereby reducing the number of complaints from and about these buildings. 5. Promote the unique aspects of the City Refuse Contract and encourage residents to effectively use the services available to them as Columbia Heights residents. 6. Execute Solid Waste Management plans and procedures as described in the City Solid Waste Management Operations Policy. Budget Comments on Proposed Budget The Refuse Collection & Disposal budget is $118,647 a 2.3% increase of $2,723 from 2018. Major changes to budget: Personnel costs increased 1.8% Other services and Charges increased over 1% 119 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: REFUSE FUND RECYCLING 603 49530 REFUSE FUND RECYCLING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 43,625 53,171 49,846 61,098 61,098 1999 Supplies 6,128 10,122 7,999 11,100 11,100 2999 Other Services & Charges 39,608 38,323 37,499 56,500 56,500 4999 Capital Outlay - - - - 6999 Contingencies & Transfers 39,049 40,200 41,811 41,900 41,900 TOTALS: REFUSE FUND RECYCLING 128,410 141,816 137,155 170,598 170,598 Activity Description This activity provides management of the recycling contract between the City and Advanced Disposal and other non - contracted recycling operations. The City contracts with the hauler to collect items in the single sort collection program, plus tires and scrap metal at the recycling drop -off center. The City continues to manage the SCORE grant program and all other recycling operations. Objectives 1. Manage the total recycling/yard waste operations and the performance of Refuse and Recycling Contract and other recycling service provider /vendor operations. 2. Continue to educate residents to all the items that can be recycled curbside, and at our Recycling Drop -off Center, and the numerous other options available within the area. 3. Continue to work with multiple dwelling units in our community to educate renters and owners alike to all the recycling opportunities available. 4. Work closely with service organizations and residents to effectively utilize our Recycling Center. 5. Continue the organics recycling curbside service. 6. Plan waste reduction activites (to generate savings from less trash disposal tipping fees) and recycling programs, plus manage SCORE grant requirements which are increasing (see SCORE agreement Attachment 'B' for summary of subsidized programs). 7. Fully implement a crubside bulk (furniture, mattresses, carpet, etc.) reuse /recycling process. 8. Execute Solid Waste Management plans and procedures as described in the City Solid Waste Management Operations Policy. Budget Comments on Proposed Budget The Recycling budget for 2019 is $170,598 a 24.38% increase of $33,443 from 2018. Major line items that contributed to the increase: 1. Other Services and Charges increased by 50.67% 2. Personnel increase 22.57% 3. Recycling supplies increased 41% 120 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: REFUSE FUND HAZARDOUS WASTE 603 REFUSE FUND Actual Actual Adopted Department City Manager Council 49540 HAZARDOUS WASTE Expense Expense Budget Proposed Proposed Adopted Line Item Description 1 2016 1 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services 2,017 2,841 3,396 3,742 3,742 1999 Supplies - - 605 600 600 2999 Other Services & Charges 8,667 9,974 9,800 10,900 10,900 4999 Capital Outlay 6999 Contingencies & Transfers - - TOTALS: 10,683 12,816 13,801 15,242 15,242 Activitv Description This activity administers the handling of hazardous waste generated by the City of Columbia Heights residential properties. Such items include fluorescent lamps, solvents, waste and automotive fluids, paints /chemicals, and illegally dumped electronic and other problem materials. Anoka County provides household hazardous waste services primarily through a year round drop -off facility located in Blaine that serves the entire county. 1. Manage the HHW (Household Hazardous Waste) operations and AD performance of Refuse and Recycling contract including other recycling service provider /vendor operations. 2. Continue to manage collection of fluorescent bulbs from residents, small businesses, and city buildings to facilitate proper disposal. Administer Xcel energy grant to pay for operations. 3. Promote and encourage residents to use the Anoka County Household Hazardous Waste drop -off facility. 4. Educate residents to those items that are hazardous, costly to dispose of, and accepted only at a licensed disposal facility, and what options may be available to purchase more wisely. 5. Continue to provide SCORE subsidized monthly electronics collection. 6. Work with Anoka County to certify the CH recycling center for HHW collection. 7. Execute Solid Waste Management plans and procedures as described in the City Solid Waste Management Operations Policy. Budget Comments on Proposed Budget The 2019 Hazardous Waste budget increased by $1,441 or 10.4% from 2018. Major changes to budget: 1. Other service and charges increased 11% 2. Personnel increased 10% 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STORM SEWER UTILITY COLLECTIONS 604 STORM SEWER UTILITY Actual Actual Adopted Department City Manager Council 496501 COLLECTIONS Expense Expense Budget Proposed Proposed Adopted Line Item Description 2016 2017 1 2018 1 2019 1 2019 1 2019 0999 Personal Services 103,626 121,739 146,885 151,918 151,918 1999 Supplies 13,572 19,857 49,502 46,050 46,050 2999 Other Services & Charges 185,831 223,855 185,097 194,150 194,150 4999 Capital Outlay - _ 6999 Contingencies & Transfers 5,000 5,000 5,000 10,000 10,000 TOTALS: STORM SEWER UTILITY C 308,029 370,451 386,484 402,118 402,118 Activity Description This department provides for the operation and maintenance of the City's storm sewer system, including NPDES Phase III permit requirements (pollution prevention), annual MS4 reporting - including TMDL reporting for Silver Lake, inspection and repair of storm sewer pipes, catch basins, manholes, and drainage ponds, and surface water related activities and inspections of land disturbing activities for erosion control. Objectives 1. Implement NPDES Phase III requirements for activities and reporting system - 3rd Generation Plan was approved by the MPCA in 2013. First report under the 3rd generation permit now includes TMDL reporting - Silver Lake 2. Implement the Water Resource Management Plan (WRMP) completed in 2017. 3. Support and coordinate with the maintenance activities in the Streets Department. 4. Rehab existing structures and /or main lines throughout the City. 5. Storm sewer system evaluation: conduct televising and inspections of storm sewer lines, leading to a storm sewer lining program. buaget comments on Proposed Budget The proposed 2019 budget is $402,118 an increase of 4% or $15,634 from the 2018 adopted budget. Major line items contributing to the increase: 1. Personnel increased by $5,033 to account for COLA increases and step system movements. 2. Other Services and Charges increased by $9,053 to account for increased activity in storm cleaning and lining. 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STORM SEWER UTILITY NON - OPERATING 604 49699 STORM SEWER UTILITY NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Budget 1 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services - 1999 Supplies - - - - 2999 Other Services & Charges - 643 650 650 4999 Capital Outlay - - 6999 Contingencies & Transfers 133,000 93,000 44,000 63,000 63,000 TOTALS: STORM SEWER UTILITY NON -OPEF 133,000 93,643 44,000 63,650 63,650 Activity Description This budget primarily accounts for transfers to the Storm Sewer debt service fund. Jbjectives This budget primarily accounts for transfers to the Storm Sewer debt service fund. Budget Comments on Proposed Budget This budget primarily accounts for transfers to the Storm Sewer debt service fund, $63,650 budgeted for 2019. 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: WATER CONSTRUCTION FUND NON - OPERATING 651 49449 WATER CONSTRUCTION FUND NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges - 4999 Capital Outlay - 65,000 6999 Contingencies & Transfers 439,054 TOTALS: WATER CONSTRUCTION FUND N 439,054 65,000 Activity Description 65,000 65,000 65,000 65,000 This fund covers capital improvements to the City's water distribution system and the reconstruction and /or repairs to the distribution system including mains, pumping stations, water tower, and operational control valves. Objectives 1. Coordinate repair /replacement of water mains that are in the street reconstruction zones or major improvement projects. 2. Continue cooperative Water Main Cleaning and Lining Program with the City of Minneapolis annual program, which may include cement mortar or structural lining. 3. Continue updates /repairs to major components of water distribution system such as gate valves, hydrants, valve boxes and SCADA Controls. Budget Comments on Proposed Budget To continue addressing the rehabilitation of an aging water system, below are the proposed Water Construction projects: 1. Annual Water Main cleaning and lining program for water distribution and quality improvement, based on approved 3 -year program. 2. DEFERRED Pump Sta #3: pumps, motors and electrical replacements. 3. Misc. repairs to address an aging water system under the Miscellaneous Utility Program. 124 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SEWER CONSTRUCTION FUND NON - OPERATING 652 49499 SEWER CONSTRUCTION FUND NON - OPERATING Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies 3,334 - - 2999 Other Services & Charges 8,100 - - - 4999 Capital Outlay - - 250,000 170,000 170,000 6999 Contingencies & Transfers 522,951 - - - TOTALS: SEWER CONSTRUCTION 522,951 11,434 250,000 170,000 170,000 Activitv Description This fund supports capital improvements to the City's sanitary sewer system and major repairs in the sanitary sewer collection system including mains, lift stations, and manholes. Obiectives Major Capital Improvements , ongoing system rehabilitation or recommended major maintenance as follows: 1. Annual Sanitary Sewer Lining sewer cleaning, disposal, and system improvements in all collection districts. 2. Annual pipe replacement or structural repairs, to address an aging collection system under the Miscellaneous Utility Program. 3. Silver Lake Lift Station: Feasibility Report and Prelim Plans for Lift Station Replacement. 4. Measures to reduce 1/1 as directed by the MCES (Metro Council Environmental Services, i.e. the sewage treatment plant operator) On -going I/I Reduction Plan. Budget Comments on Proposed Budget To continue addressing the rehabilitation of an aging sewer system, below are the proposed Sewer Construction projects: 1. Annual Sanitary Sewer Lining sewer cleaning, disposal, and system improvements in collection districts 1, 2 or 3. 2. Implement measures to reduce 1/1 as directed by MCES (Metro Council Environmental Services, i.e. the sewage treatment plant operator). 3. Annual pipe replacement or structural repairs, to address an aging collection system. 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: STORM SEWER CONSTRUCTION FUND 653 STORM SEWER CONSTRUCTION FUND Actual Actual Adopted Department City Manager Council 9699 NON - OPERATING Expense Expense Budget Proposed Proposed 'Adopted Item Description 2016 2017 2018 2019 2019 2019 0999 Personal Services 1999 Supplies _ - 2999 Other Services & Charges 162,000 - 25,000 25,000 4999 Capital Outlay - 165,000 480,000 480,000 6999 Contingencies & Transfers 1,285,578 - - - TOTALS: STORM SEWER CONSTRUCTION 1,447,578 165,000 505,000 505,000 Activity Description This fund supports capital improvements and major repairs in the storm sewer collection system, flood mitigation, water quality improvements, and other surface water related activities. Objectives 1. Continue the annual program of replacing or upgrading catch basins, manholes and storm pipe in the street rehabilitation zones. 2. Continue to address localized flooding issues throughout the City. 3. Implement 5 year CIP improvements as approved by the MWMO. Budget Comments on Proposed Budget Consistent with the 5 year Capital Implementation Plan, below are the proposed Storm Sewer Construction projects: 1. (2018 funding application) The storm water runoff into Silver lake requires pond reconstruction for pollution control, prevent erosion leading to the lake, and eliminate short circuiting. Total cost $320,000 with RCWD and State Legacy funding approx $240,000 and a RCWD grant of $37,000 2. Bio- infiltation rain garden on 4158 Stinson Blvd., consistent with requirements of Silver Lake TMDL. 3. Stormwater study, quality and quantity, of the Gauvitte Park area and upstream drainage area, partnered with the MWMO. 4. Rehab or Replacement of Storm CB's or MH's in annual Street Rehab zones under the Miscellaneous Utility Program. 5. Replacement of the Silver Lake aeration system due to age deterioration. 126 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CENTRAL GARAGE 701 49950 CENTRAL GARAGE CENTRAL GARAGE Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 2018 Department Proposed 1 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 217,627 194,204 229,073 264,954 264,954 1999 Supplies 132,260 143,383 203,205 179,800 179,800 2999 Other Services & Charges 221,260 249,112 248,282 256,500 256,500 4999 Capital Outlay - - 14,500 21,500 21,500 6999 Contingencies & Transfers 4,000 4,000 28,000 24,000 24,000 TOTALS: CENTRAL GARAGE 575,147 590,699 723,060 746,754 746,754 Activitv Description Central Garage provides preventive general maintenance and repair for all city -owned vehicles and equipment. The City currently has over 300 pieces of equipment that are maintained on a regular basis. This is an internal service fund with revenue generated by charges to other departments for all repair and maintenance services performed by members of this department. This department budget also covers regular maintenance costs for the MSC Building. Objectives 1. Maintain the MSC building for central equipment servicing for various city departments. 2. Provide cost effective purchasing of vehicle parts, petroleum, oil, lubricants, and services for city vehicles and equipment. 3. Continue participation in the Metro Fuel Purchasing Program to establish a fixed per gallon price for the entire year for approximately 70% of our annual fuel purchases JPA of over 40 cities and counties providing stable, low -cost fuel pricing. 4. Maintain shop equipment with low inventory. 5. Complete bituminous resurfacing modifications in the rear yard. Budget Comments on Proposed Budget The Public Works garage and MSC operating budget proposed for 2019 is $746,754 ,which is a 3.3% increase or $23,694 from the 2018 budget. Major line items contributing to the increase: 1. Personnel increased by $35,881 to account for COLA increases, step system movements and market rate adjustments. 2. Other Services and Charges increased by $8,218 as information systems transfer increased. 3. Projected fuel costs decreased over $20,000 127 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CENTRAL GARAGE 705 49970 BUILDING MAINTENANCE BUILDING MAINT. INTERNAL SERVICES Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: BUILDING MAINT. INTERNAL S Activity Description 241,193 173,626 189,043 210,595 210,595 25 224 10,625 9,750 9,750 2,317 2,724 5,780 6,250 6,250 243,535 176,574 205,448 226,595 226,595 This department was transferred to Public Works in 2014. The department provides building maintenance services to city buildings. This includes both custodial services provided by part -time custodians, as well as analysis and coordination by the full -time Facilities Maintenance Supervisor of more technical building systems maintenance and repair requests. Costs of this department are allocated proportionately to use by each respective building/department. This is reflected as an internal cha in the budgets of the user departments. Note that the Recreation Department - Murzyn Hall budget (101.45129) includes additional part -time custodians, serving solely at Murzyn Hall, which are not included in this 701.49970 internal service department budget. Objectives This department's two main objectives is professional coordination of the maintenance and repair of all city buildings. The second main objective to provide cost - effective custodial services for four of those buildings: 1) City Hall 2) Public Safety Center 3) Library 4) Municipal Service Center Budget Comments on Proposed Budget (New) Prior to 2015, these internal services were budgeted within the personnel section of each user department budget, as interdepartmental labor. Beginning in 2015, all costs of this internal service are collected in fund /department 701.49970. Within each user department's 2015 budget, their respective allocable share of the cost is reflected under the new line item 4010 Building Maintenance - Internal Services. The 2019 Building Maintenance budget is $226,595, a $21,147 or 10.3% increase over 2018. Major areas of change are: 1. Personnel increased by $21,552 to account for COLA and accounting for maintenance worker actual time previously charged out to individual budgets. 2. 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The Recreation Department is comprised of eight main areas in which the Director, fifty percent full time Clerk- Typist II, and one half -time Recreation Clerk disperse their time. Each of the nine areas has its own separate budget. This category provides salaries for the department as well as supplies and contractual services for the department. Recreation Administration also funds space allocation to the Murzyn Hall budget for office space. Objectives 1. Continue to improve customer service to our very diverse and ever - changing community. 2. Promote our recreation programs by utilizing local papers, social media and schools to get advertising out to members of our community. Budget Comments on Proposed Budget The Recreation Administration total budget has increased by $9,434. Personal Services has had an increase of $4,902 for wage adjustments and COLA. Computer Equipment increased $1,000. Information. Systems has been increased by $2,200. This budget provides $2,902 for Murzyn Hall office space allocation. 130 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: YOUTH ATHLETICS 101 GENERAL 45001 YOUTH ATHLETICS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 17,518 22,048 28,574 36,000 36,000 1999 Supplies 667 2,340 2,200 2,700 2,700 2999 Other Services & Charges 13,130 12,515 12,458 12,911 12,911 4999 Capital Outlay - - - ` - 6999 Contingencies & Transfers - - - - - TOTALS: YOUTH ATHLETICS 31,316 36,903 43,232 51,611 51,611 Activity Description This activity classification encompasses recreational programs provided to youth. These programs consist of children and adolescents K -12. Programs fall under several sport- specific headings, including baseball, softball, basketball, football, soccer, volleyball, and wrestling. All programs are participation- oriented, with the focus on fun, socialization, and athletic skill development. These particular programs provide the youth of Columbia Heights with supervised play opportunities at local gym facilities and neighborhood parks. This category also provides one -forth of the Recreation Coordinator salaries, gym supervisors and officials. Youth Athletics also provides office space to the J.P.M. budget. Objectives 1. Work with our varsity coaches to help develop our youth sports programs. 2. Explore options of creating additional sports programs for younger age youth. Budget Comments on Proposed Budget The 2019 Youth Athletics budget has increased $8,379. 25% of the full and part -time Recreation Coordinators salaries are included within this budget. One reason this budget has not had major increases is due to the significant donation of athletic equipment made by the Columbia Heights Athletic Boosters Association. The Youth Athletic budget also provides $2,861 for space allocation to J.P.M. 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: ADULT ATHLETICS 101 45003 GENERAL ADULT ATHLETICS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 13,930 14,779 17,913 24,900 24,900 - 1999 Supplies 811 1,228 1,100 1,100 1,100 - 2999 Other Services & Charges 12,625 12,964 11,308 12,211 12,211 - 4999 Capital Outlay _ _ - - _ 6999 Contingencies & Transfers - - - _ _ TOTALS: ADULT ATHLETICS 27,366 28,971 30,321 38,211 38,211 - Activity Description This activity encompasses recreational programs provided to adults in Columbia Heights. Leagues are administered in summer and fall. An annual summer softball tournament is held during the Columbia Heights Jamboree. This activity also provides one -forth of the Recreation Coordinator salaries and covers costs of umpires and referees. J.P.M. budget is also paid for space allocation for office space and storage space. Objectives 1. Explore healthy options for adult programs to be held at the Hylander Center. If 2. Continue to coordinate a very organized and competitive adult softball program. Budget Comments on Proposed Budget The total Adult Athletics budget for 2019 has an increase of $7,890. Murzyn Hall budget also received space allocation from Adult Athletics in the amount of $2,861. 25% of the full and part -time Recreation Coordinators salaries are included within this budget. 132 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: YOUTH ENRICHMENT 101 45004 GENERAL YOUTH ENRICHMENT Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 25,872 43,198 51,757 59,700 59,700 1999 Supplies 2,176 2,795 2,350 2,350 2,350 2999 Other Services & Charges 16,278 17,314 27,157 26,800 26,800 4999 Capital Outlay - - - 6999 Contingencies & Transfers - - TOTALS: YOUTH ENRICHMENT 44,325 63,307 81,264 88,850 88,850 Activity Description This activity classification encompasses recreational, academic, athletic, and enrichment programs provided to the youth age 3 -13. These offerings are participation- oriented, with the focus on fun, socialization, achievement, and skill development. Dance and Tumbling runs throughout the fall, winter, and spring sessions. Special events that are family- oriented and run throughout the year are Bunny Brunch, Safety Camp, Halloween Spooktacular, and Breakfast with Santa. The Traveling Puppet Wagon, which was funded through a grant from the Medtronic Foundation in 1998 has been operating for the last twenty years. The Puppet Wagon travels to neighborhood parks and performs a variety of family -based puppet shows. Youth Enrichment funds office, storage and program space within the Murzyn Hall budget. This budget also provides one - fourth of the Recreation Coordinator salaries. Objectives 1. Continue to create classes, programs and special events that provide more opportunities to meet our diverse community needs. 2. Expand our gymnastics and dance programs to align with our current year -round martial arts programs Budget Comments on Proposed Budget The Youth Enrichment budget has an increase of $7,586. This budget has seasonals to cover the loss of the youth program grant. Personal Services has had an increase of $7,943 to cover wage adjustments and COLA. This budget provides $25,200 for space allocation to the Murzyn Hall budget. 25% of the full and part -time Recreation Coordinators salaries are included within this budget. 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: TRAVELING ATHLETICS 101 45005 GENERAL TRAVELING ATHLETICS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 13,930 14,779 21,521 28,700 28,700 - 1999 Supplies 70 694 2,925 2,925 2,925 - 2999 Other Services & Charges 7,913 8,750 13,758 12,661 12,661 - 4999 Capital Outlay - - - - _ _ 6999 Contingencies & Transfers - - TOTALS: TRAVELING ATHLETICS 21,913 24,223 38,204 44,286 44,286 Activity Description This activity classification encompasses competitive athletic opportunities offered to Columbia Heights' youth in grades 3 -12. Teams are formed in basketball, baseball, and softball, with players selected by ability after pre- season tryouts. Teams are organized and equipped through the Recreation Department, which is unique in the metro area. Teams compete within Minnesota Youth Athletic Services sanctioned leagues. This category also provides one -forth the Athletic Coordinator salaries as well as league fees for team memberships. Objectives 1. Continue to participate in more competitive youth leagues that play at a higher level. 2. Work with surrounding communities to create youth sports leagues, which are more beginner level at the younger ages. Budget Comments on Proposed Budget Traveling Athletics budget has had an increase of $7,179 for Personal Services. 25% of the full and part -time Recreation Coordinators salaries are included within this budget. Space allocation of $2,861 was also provided to the Murzyn Hall budget. Overall, the budget has increased $6,082. 134 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: TRIPS & OUTINGS 101 45030 GENERAL TRIPS & OUTINGS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 20,602 20,933 21,482 22,100 22,100 1999 Supplies 53 - 350 350 350 2999 Other Services & Charges 16,537 18,523 17,595 17,620 17,620 4999 Capital Outlay - - - - - 6999 Contingencies & Transfers - - - - TOTALS: TRIPS & OUTINGS 37,191 39,456 39,427 40,070 40,070 Activity Description Trips and Outings include one -day and extended trips for senior citizens. These are advertised through quarterly trip flyers mailed to participants. It continues to be one of our most popular offerings and is a self- sustaining program. This activity provides twenty -five percent of the Senior Citizen Coordinator salary. Trips and Outings also budgets monies for office space allocation to Murzyn Hall. Objectives 1. Provide seniors with a well - planned and well- executed trip schedule of both one -day extended trips and small group excursions. 2. Offer seniors a wide variety of well thought out and professionally executed trips that are extended trip options and ones closer to home. Budget Comments on Proposed Budget Trips and Outings budget has increased $618 for Personal Services. Twenty -five percent of the Senior Citizen Coordinator salary is budgeted within the Trips and Outings budget. The Murzyn Hall budget also received $741 for space allocation. 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: SENIOR CITIZENS 101 45040 GENERAL SENIOR CITIZENS Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 67,970 71,822 69,825 72,200 72,200 1999 Supplies 2,479 1,605 3,250 3,200 3,200 2999 Other Services & Charges 15,916 14,972 18,531 18,337 18,337 4999 Capital Outlay - _ - _ _ _ 6999 Contingencies & Transfers - - - _ TOTALS: SENIOR CITIZENS 86,365 88,399 91,606 93,737 93,737 Activity Description The Senior Center is located in Murzyn Hall and provides a wide variety of programs to individuals 55 years and older in the community. The Center is open Monday through Friday from 9:00 a.m. to 4:00 p.m. This program provides seventy -five percent of the Senior Citizen Coordinator salary. The Senior Citizen budget also provides space allocation for Murzyn Hall for office, storage and Senior Center space. Objectives 1. To provide social, educational, and recreational programs to seniors in the community. 2. To serve as a center that provides resource information regarding senior issues and concerns. 3. To continue to provide the opportunity for senior exercise programs. 4. Offer seniors a variety of options in programs that address social, educational and recreational needs. Budget Comments on Proposed Budget The total Senior Citizens budget has increased by $2,131. Seventy -five percent of the Senior Coordinator salary is budgeted under this budget. There was a charge of $13,037 for space allocation to Murzyn Hall. 136 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: MURZYN HALL 101 45129 GENERAL MURZYN HALL Actual Expense 2016 1 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 103,945 111,969 107,503 110,900 110,900 1999 Supplies 11,679 14,102 19,150 19,150 19,150 2999 Other Services & Charges 48,775 48,354 34,037 47,582 47,582 4999 Capital Outlay - - 72,362 - - 6999 Contingencies & Transfers 23,000 23,000 23,000 23,000 23,000 TOTALS: MURZYN HALL 187,399 197,425 256,052 200,632 200,632 Activity Description In an average year, Murzyn Hall (JPM) is used approximately 2,500 hours for classes/ activities, 1,500 hours for weddings, and 1,000 hours for meetings. Approximately 20% of the users are charged while the remaining 80% are fee waived or charged a minimal fee to offset custodial costs. •JPM operates seven days a week and runs near full capacity throughout the year. Murzyn Hall budget provides salaries for part -time custodians, and fifty percent of the Recreation Secretary position. Objectives 1. Continue to provide renters a first rate facility for special events. Budget Comments on Proposed Budget The Murzyn Hall budget has decreased by $55,420 due to the additional allocation from Youth Enrichment. Maintenance Supervisor is budgeted at $8,400. Information Services has an increase of $1,300. A space allocation credit received from the recreation budgets is $50,463. A transfer out to bonds is also included in the Murzyn Hall budget for the Honeywell project in the amount of $23,000. 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: HYLANDER CENTER 101 45130 GENERAL HYLANDER CENTER Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 24,265 23,216 36,093 37,300 37,300 1999 Supplies 3,067 827 1,500 1,500 1,500 2999 Other Services & Charges 43,928 43,498 50,200 50,200 50,200 4999 Capital Outlay - - - - 6999 Contingencies & Transfers - - - - - TOTALS: HYLANDER CENTER 71,260 67,541 87,793 89,000 89,000 Activity Description The Hylander Center budget covers the staff and utilities to maintain and operate the Hylander Center gym and fitness room. This budget includes utilities and cleaning that is serviced by the School District and then paid from this account. Objectives 1. Promote the facility to gain additional users. 2. Continue to expand revenue by operating tournaments. Budget Comments on Proposed Budget The Hylander Center budget increased $1,207 due to Personal Services. 138 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: PROGRAM REVENUE EXPENDED 261 45029 AFTER SCHOOL PROGRAMS PROGRAM REVENUE EXPENDED Actual Expense 2016 Actual Expense 2017 Adopted Budget 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 2019 Line Item Description 0999 Personal Services 1999 Supplies 2999 Other Services & Charges 4999 Capital Outlay 6999 Contingencies & Transfers TOTALS: PROGRAM REVENUE EX Activity Description 35,928 20,939 22,562 23,300 2,203 2,782 3,000 3,000 15,789 14,570 18,000 18,000 53,920 38,292 43,562 44,300 23,300 3,000 18,000 44,300 Within fund 261, a separate expense department was created for each separate grant contract obtained in the past. The expense department shown here, 45029 Program Income Expended, is only used within Fund 261 when an active grant is not available. This activity covers summer programs and school out day programs. Objectives 1. To use existing fund balance to continue to provide services at previous levels in accordance with the terms of the past grants received for this activity. 2. To review options for obtaining future grants for this type of youth programming. Budget Comments on Proposed Budget Within fund 261, a separate expense department was created for each separate grant contract obtained in the past. The expense department shown here, 45029 Program Income Expended, is only used within Fund 261 when an active grant is not available. This is grant revenue that will be spent for the same purposes as the original grant was intended. 139 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: 2017 - 20 CONTRACT 262 45020 21st CENTURY ARTS 2017 - 20 CONTRACT Actual Expense 2016 1 Actual Expense 2017 Adopted Budget 2018 Department Proposed 1 2019 City Manager Proposed 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1,155 32,300 32,300 1999 Supplies 153 6,000 6,000 - 2999 Other Services & Charges 241 7,000 7,000 4999 Capital Outlay - 6999 Contingencies & Transfers - - TOTALS: 2017 - 20 CONTRACT 1,549 45,300 45,300 Activity Description The 21st Century Arts budget is the Recreation Department's federal grant that we received with the Columbia Heights School District. It is focused on programs with the arts. Objectives This space intentionally left blank. Budget Comments on Proposed Budget The 21st Century Arts budget is the Recreation Department's federal grant that we received with the Columbia Heights School District. It is focused on programs with the arts. It funds instructors, trips, and supplies. 140 CITY OF COLUMBIA HEIGHTS, MINNESOTA BUDGET 2019 DEPARTMENT: CAP EQUIP REPLACEMENT GENERAL 431 CAP EQUIP REPLACEMENT GEN 4-50001 RECREATION ADMINISTRATION Actual Expense 2016 Actual Expense 1 2017 Adopted Budget 1 2018 Department Proposed 2019 City Manager Proposed 1 2019 Council Adopted 1 2019 Line Item Description 0999 Personal Services 1999 Supplies - - 2999 Other Services & Charges 4999 Capital Outlay - 65,000 65,000 6999 Contingencies & Transfers - - TOTALS: CAP EQUIP REPLACEME 65,000 65,000 Activity Description The Recreation Department coordinates day trips for senior citizens. These are advertised through the senior monthly newsletters. It continues to be one of our most popular offerings as it provides transportation to and from various venues throughout the metropolitan area. This program offers seniors an opportunity to do activities they may not be able to do on their own. Many times there is a waiting list to attend these outings. Currently, the vehicle used for these outings is 2003 Ford E350 mini bus that we acquired several years ago. It was a Park n Fly vehicle from the airport. The mini bus is a 15 passenger bus that has 133,000 miles on it. Our Vehicle Maintenance Supervisor has indicated that this vehicle is not as reliable as it once was. The Recreation Department would like to replace this with a Ford Transport vehicle with an estimated cost of $65,000. Objectives 1. Provide seniors with a well - planned and well- executed trip schedule of both one -day extended trips and small group excursions. 2. Offer seniors a wide variety of well thought out and professionally executed trips that are extended trip options and ones closer to home. Budget Comments on Proposed Budget The Recreation Department would like to replace the existing 2003 Ford E350 that has 133,000 miles on it with a Ford passenger Transport with an estimated cost of $65,000. 141 - This page intentionally left blank - 142 O Cl CD ko w O O ;•ice Ga O CO'I 00 co Ln , Ln M O � d O m at m m m � ci m °o °o 00 co M Ln V) Vl O O UD O O Dm a1 O Lo Ln Ln O Q O C N N O O vi M N pO O Ln O 0a 0 n S S M N N °o q Ln N M' ri to N O al 00 ri ri n n �O M O O NN O 2 n O 0 a Ln 0 Cl co c c C C C C C G C G G G O O C C O v c IZ v) N O 00 L L .; u , Cli a 0"e O \ \ C C < vL > �° Q U w , O VO.' C N U 0� aj m C7 W i OJ y Q01 o Q 1L r, O O 75 N jC VI c n S3 O LL O m m N VI dl m N VI h0 F C J , � O�j L O 01 .O C VI O C O. 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CL a.. 7 % w 0w m C N 12 7 p, L Q L f1 C N 7 CN U LL C 11 f— W d VI O CJ c.i Q1 Q a CJ 0) 0) 01 0) 0) 0) 0) 01 > 01 0) 0) 0) 0) 0) X O) m rn DI rn m rn al rn 2' rn rn M 01 01 to 01 01 01 01 m m m -j -;t 01 0) 0) 01 01 --T w 10 C O —I N m VI lD 01 m f0 O f-I N m M m m m m m M O 0 O 0 v 143 � isfiribuEed. a�- mee'9 INTERNAL STAFFING ASSESSMENT City of Columbia Heights Fire Department Prepared for Columbia Heights City Council August 2018 EXECUTIVE SUMMARY by Fire Chief Gary Gorman The Columbia Heights Fire Department is currently experiencing a staffing problem. Building up over the past decade, the problem has reached a point where it must be addressed directly. An increase in calls for service during this period has created a demand for services that exceeds our staffing resources. Increases in call volume, a change in the dynamics of the City's properties, and a shortage of staffing and experience of new staff, limit the capabilities of the current staff to adequately meet the expectations and needs of the community we serve. A study of the Department's staffing needs has been initiated but this has created another problem. The completion date for the study will be after the City's budget process for 2019, meaning that any additional staff the study suggests, needed today, will have to wait to be included in the next budget cycle and any new staffing will not be able to be hired until 2020. In an effort to be proactive, I would like to request that the Council establishes funding in the 2019 Fire Department budget for the hiring of an additional two full -time firefighters and amend the Property Maintenance Clerk- Typist II position from part -time to full -time. This document explains the rationale behind that request and outlines some of the factors that have influenced the need for additional staffing. INTRODUCTION TO DEPARTMENT STAFFING HISTORY Established on May 26, 1907, and composed of citizens of the community, the Columbia Heights Fire Department began an all- volunteer department. Department members received a modest compensation from the City for response to emergencies. Early on, the Department leaders saw the value in fire prevention and education and, in 1935, adopted and enforced the first fire and life safety code and visited schools to perform public education. Providing excellent service to the community has always been important to the Department and in that era the Department saw the need and an opportunity to expand its services to help their fellow citizens by providing "first aid" emergency medical services to those in distress. Department records show first aid responses dating back to the early 1940s. The increased volume of calls for service led to the hiring from within the Volunteer ranks of Fire Chief Omar Schwartz in 1942, who became the Department's first Full -time Firefighter, followed shortly after by the second Full -time Firefighter William Ostmoe in 19431. Over the next 25 years the Department evolved into the combination department it is today. The City hired additional Full -time Firefighters as call volume and demand for additional services required more time than could be given by the Department's volunteers. The combination model of full -time and part- time firefighter staffing has dominated the fire department's staffing landscape for the past 75 years and has served the taxpayers well as a cost - effective solution to emergency response. At its peak, the Department employed nine full -time Suppression firefighting personnel. In 1976, one of the firefighter positions was eliminated through attrition, dropping the number to eight. The Fire Department's Suppression Division currently employs eight full -time staff and 18 volunteer part-time staff, or "Paid - on- Calls ", has one full -time Fire Secretary, and one part-time Property Maintenance Clerk. The scope of the Department's delivery of services has grown over time with the expectations placed upon them by its citizens and society. Today, the department provides emergency response for fire suppression, natural disasters, emergency medical calls, hazardous materials incidents, specialized rescue, weapons of mass destruction, terrorism, and active shooter incidents. Non - emergency services include public education and training, emergency preparedness and management, fire investigation, state fire code inspections, and inspection and enforcement for the City's Property Maintenance Code, long grass, and outside storage ordinances. 175 Years of Service Booklet (Columbia Heights Fire Department, 1983). CALLS FOR SERVICE In the past three decades, the national average for calls for service has tripled. In addition, the public expectation for more and better quality fire and rescue services has also increased'. The call volume at the time the Department took on the Housing Maintenance Inspections was 1,574 calls per year. That number has slowly been climbing upward and, in 2017, the fire department responded to a record 2,904 calls for service. The largest bulk of the calls for service have historically been response to medical incidents, which last year accounted for 2,485 of the total call volume. Fire - related incidents accounted for the other 419 of the calls, 38 of which were structure fires. Through the end of July of this year, the Department has responded to 1,801 calls for service. This number sets the Department on pace for another record - breaking number of calls for service in 2018. 6000 5000 4000 3000 2000 1000 0 CALLS FOK SERVICE 1990 TO Z017 00 0) c> c� Od 0) 05 0i) O) 00 00 Oti O� OM Ob O� Oro O^ O� 00 N "~ _IV ti� N IN N 'y y0) o, ti0 y0, y0) � 1� ti0 1� ti0 ,�O ,VO ry0 ,�O ,�O �O ,VO �O �O ,�O ,ti0 ,y0 * * * * * 1O Fire Calls r: First Aid /Medicals , . TOTAL CALLS Figure 1 Data obtained from City of Columbia Heights Annual Reports, 1990 — 2017. ' Volunteer Firefighter Recruitment and Retention Formative Research Results (SalterMitchell Inc., 2015) Retrieved from https:// www. google .com /url ?sa= t &rct= j &q= &esrc =s& source = web &cd =1 &cad= rja &uact= 8 &ved =2a hUKEwjxg86GzMfcAh UJ rFQ KH a- gCVAQFjAAegQIAhAC& u rl= https%3A %2 F %2 Fwww. nvfc. org %2 Fwp- content%2Fuploads%2F2016%2F09%2FNVFC_Formative- Research_2015_Report_v1f. pdf &usg= AOvVaw008dgbDAcdgidQiO M um m U9 41 Page SIDEBAR-.A SURVEY CAF CITY SERVTCES Response to Fires Response to Medical Calls i Residential Code Er.iuumenl Rental Code Enforcement �r Co=uuity Outreach Public Education , r THE SURVEY ON PMC INSPECTIONS The 2017 Police Department Survey also asked residents about Property Maintenance Inspections in the city. In 2017, the Columbia Heights Police Department conducted a survey of 222 residents in regards to City services. One section of the survey asked residents to prioritize what functions they felt the fire department should invest their time and budget resources. w p w p w a < a L5 44% s s G' nee � 21Y� City is doing a good job of enforcing the Property Maintenance Code. A Overall appearance of #I`.'e E the city Is good. 25% City should invest additional F[Iresources into Property Maintanenace Code enforcement and would support increasing 5 %6 %a taxes or cutting other programs. 51 Page INSPECTIONS AND PROPERTY DYNAMICS The Department provides inspection services by enforcing the Minnesota State Fire Code and several City ordinances, including the Property Maintenance Code. Annual commercial property inspections of businesses are performed in the late fall and winter, leaving the months of March through September for rental property inspections and licensing. In respect to services provided it is significant to note the fire department's historical involvement with the City's Property Maintenance Code (PMC), formerly known as the Housing Maintenance Code (HMC). After its adoption in 1990, the HMC was initially placed under control of the Community Development department. By summer of that year, the Fire Department had begun to assist Community Development with the rental property inspection program as the inspection tasks had quickly overwhelmed their staffing. Over the next two years, Community Development came to the realization that the time required by the program was more than what their staff could effectively manage and, at the time, moving the HMC Program TEMPORARY CLERK Temporary Clerk Typist II position added FULL -TIME CLERK Clerk position amended to a 40 -hour Full -time Clerk Typist II position PART-TIME CLERK Full -time 40 -hour Clerk Typist II position eliminated NO CLERICAL STAFF Clerical duties performed by Assistant Fire Chief PART-TIME CLERK Increase from 13 to 20 hours for Temporary Cerk Typist II position ADDITIONAL CLERK Additional 20 -hour part -time Clerk Typist Poisiton added to the Fire Department was a good fit Figure 2 Property Maintenance Clerk Hours Timeline and easily filled the firefighter's time between calls and other duties. In 1992 the City transferred full responsibility for the inspection and licensing of rental properties to the Fire Department. The responsibility for the HMC initially came 61 Page without additional staffing and the Assistant Fire Chief took time away from his fire - related duties to perform HMC clerical duties. At first, the rental inspections were performed by only two of the full -time firefighters on duty. At that time, the approximately 5213 rental properties in the City were on a four -year inspection schedule so only one quarter (approximately 130) of the rental properties received a complete interior and exterior inspection each year. In 1996, due to deteriorated maintenance conditions throughout the city, the fire department proposed to the City Manager that all rental properties should receive annual inspections to keep the properties on par with the minimum standards the HMC had established. To accomplish this, all six full -time firefighters began performing annual HMC rental inspections. Since then the properties are on an annual schedule where half of the properties receive a complete interior and exterior inspection and the other half of the properties receive an exterior and, if applicable, a common area inspection. In 2007, the fire department rewrote the Housing Maintenance Code and the City adopted the new code as the Property Maintenance Code, which now applied to all properties in the City; residential commercial, or industrial. In an effort to increase efficiency of government by having fewer inspectors visit a property, the Fire Department also took on the grass and weed inspections from Public Works and the garbage and outside storage inspections from the Police Department. The fire department did not believe, based on past history, that these responsibilities would significantly increase the number of inspections performed. The recession from 2008 to 2012 is a tragedy Figure 3 Data obtained from City of Columbia Heights Annual Reports, 1990 -2017 unforeseen by the City as dozens of properties in 31992 City of Columbia Heights Annual Report 71 Page the city became foreclosed and subsequently vacant, requiring intervention by fire department inspectors. Violations such as outside storage, long grass, and scrub growth, as well as vacant and unsecured properties required immediate and continual attention by the Department. The recession caused a significant drop in city -wide property values. The dynamics of property ownership in the city shifted as foreclosed and vacant single - family homes, purchased and converted to rental properties, created close to a 77% increase in the number of rental properties. Complicating matters further, the City, also affected by the recession, made the tough decision in 2009 to severely cut budgets. The fire department budget, whose largest budget share is primarily composed of employee salaries, had to eliminate the 40 -hour per week HMC clerical position in order to meet budgetary goals. To this day, the 40 -hour clerical position remains vacant. With only the 20 -hour per week HMC clerical position remaining, the layoff severely handicapped the ability of the fire department to manage the inspection program and process the increasing number of inspections created by the recession. The Department's proactive inspection program became reactive and took longer to process as firefighters, whose strong suit is not necessarily clerical in nature, assisted with data entry. The trend of declining single - family home ownership in the city is likely to remain the same as millennials, who for several reasons, are delaying the purchase of or opting not to purchase homes4. CHANGES IN SUPPRESSION STAFFING In the past three years, the Department has had two 30 -year plus veteran Fire Captains retire and is expecting the retirement of one of its 30 -year plus Full -time Firefighters around the end of the current year. That's over 90 years of strategic and tactical firefighting, EMS, and inspection experience lost. Experience on an emergency scene makes the job safer for firefighters and citizens alike by reducing the risk of injury and death. Experience cannot be taught. New firefighters receive training and gain "task" knowledge. This serves as a knowledge foundation and from that point on they experience learning, which builds experience. On the inspection side, the loss of three experienced inspectors slows down inspections as the new inspectors are learning to perform the job efficiently and accurately. Even when teamed with an experienced Inspector, it takes a longer time to perform an inspection as every inspection is a teaching moment. This extends the time it takes to perform an inspection, which coupled with an increase of inspections, reduces the number of inspections able to be performed in an inspection day. ° Millennials and Home Ownership (Reid Cramer and Elliot Schruer, 2014) Retrieved from https: / /www.newamerica.org /mi Ilennials /miliennials- rising- resource - center/ 8 1 P a g e A 2015 report on recruitment and retention of Volunteer /Paid -on -Call firefighters (POC) by the National Volunteer Fire Council states "the number of volunteer firefighters and emergency responders in the United States is declining — about 12 percent in just the past three decades — leaving nearly half of U.S. communities at increased risk during emergencies. This declining number of volunteers coincides with an increased call volume that has tripled in that time, and an increased public expectation for more and better quality fire and rescue servicesi5. The Columbia Heights Fire Department is observing the same decline in volunteers both regionally and locally. Currently the average length of service for a POC firefighter is approximately 36 months, of which, the first 12 -18 months is spent on training. Financially, from application to the end of probation, the City spends approximately $12,000 to $15,000 on each employee. A "normal" day in the fire department consists of many activities squeezed into it and two firefighters on duty to accomplish them. Deviating from the norm, when one of the full -time firefighters is sick or on vacation, the Department loses 50% of their daily shift workforce. For the safety and security of firefighters and residents, the Department places a high priority on interior inspections being conducted with two firefighters. For many years the taxpayers have had the luxury of having most of the vacancies in the daytime shifts staffed with POC's who were available weekdays. While the POC firefighters can assist with EMS and fire calls, they lack training as an inspector and, in some cases, are not able to drive a rescue vehicle or fire engine. Having two experienced and trained inspectors on duty is critical in order to manage the current workload of inspections. Currently, there are no POC Firefighters that are consistently available to cover daytime weekday shift vacancies. HISTORY OF PAID-ON =CALL HOURS 5000 4000 -3-44 3000 - 2000 1000 -� 0 ,LOpO ,L�p'L ,L�p1- ,LpO'� ,LpO�` ,LpO� 'Lp06 ,LpO � ti�o� ti��9 ��tip 1�ti� ��.y'y �Oti3 1�1N �OtiS ��16 ti�ti� Figure 4 Data Source: City of Columbia Heights Annual Reports 2000 -2017. This graph shows the total hours worked by Paid - on -Call Firefighters since 2000. Graph does not include training hours and emergency calls for the POC staff. The large dip between 2006 and 2010 is for hours cut due to budget cuts during the recession. Paralleling the national issue of a decline in the recruitment and retention of volunteer firefighters the Fire Department has seen a decline in the ability to recruit qualified candidates and retain volunteer 5 Volunteer Firefighter Recruitment and Retention Formative Research Results, (National Volunteer Fire Council, March 2015). 91 Page firefighters for long -term employment. Emergency services are the most demanding of volunteer activities today. The demands on people's time in a hectic modern society; more stringent training requirements; population shifts from smaller towns to urban centers; changes in the nature of small town industry and farming and a decline in the sense of civic responsibility, are examples of factors that affect successful recruitment and retention of volunteer firefighters6. Currently, 11 of the Department's 18 POC firefighters have four or fewer years on the department. The inexperience of the POC staff places additional stress on the full -time staff tasked with mentoring, teaching, and assisting the inexperienced firefighters who are working in shifts. Until the new firefighters can gain experience they must be closely overseen during incidents to ensure their safety as well as the safety of other personnel and the public. In addition, staffing vacancies in shifts with the full -time staff on overtime creates another set of issues. The department has a normal shift schedule that consists of two of the six full -time staff on duty at all times. That leaves only four of the full -time staff available to call in on overtime to cover any vacancies. Overtime is costly for the City and the additional hours working in a stressful environment is taking its toll on the mental health of the full -time staff. The normal work schedule for the Department's 56 -hour per week full -time firefighters is 2,912 hours per year compared to 2,080 hours per year for a 40 -hour per week employee. Working long hours and stress is detrimental to the long -term physical and mental health wellbeing of full -time Suppression staff. In 2017, three of the six firefighters worked a total of 3,100 or more hours. An abundance of recent research pertaining to firefighter health shows that those in the fire service experience much higher rates of mental health challenges than the general population, particularly in the areas of sleep disorders, depression, substance abuse, post- traumatic stress disorder and suicidal ideation /action. In fact, research suggests that there is an association between the number of years of duty in the fire service and higher levels of suicidal ideation /action'. The National Fire Protection Council (NFPA) develops staffing and response standards for full -time, volunteer, and combination departments. Numerous studies on staffing for fire and EMS agencies over the past 20 years have concluded that four firefighters is the optimal staffing for response to fire and emergency medical incidents. The Department's leaders are confident that the City's current staffing study will conclude similar results as these previous studies. Some of the staffing studies are referenced at the end of this document. 6 Retention and Recruitment for the Volunteer Emergency Services, (U.S. Fire Administration, 2017) 7 Minnesota Firefighter Initiative, 2016. Retrieved from mnfireinitiative.com 10 1 P a g e Department inspectors perform inspections on weekdays, which amount to an average 21 weekdays per month. Using past inspection history the average number of inspections per day is 22. Scheduled inspections of rental properties having four units or fewer require a minimum of one half of an hour for a complete inspection. Since there are only 11 half hour slots in an inspection day, half of the inspections are "squeezed in" between other scheduled inspections. The highest number of calls in the inspection day occurs between the hours of 11 am and 1 pm. This has been continually problematic when it comes to providing adequate time for the firefighters to have some down time and eat lunch. Additionally, the Department's Firefighters have other collateral duties that require time during the day to perform; working with vendors, answering and returning phone calls and emails, station maintenance, vehicle and equipment checks and maintenance, public education, planning, preparing, and performing training for the department, and other daily tasks and duties assigned to them. The recent addition of emergency management duties and responsibilities to the firefighters has increased their duties and responsibilities. The firefighters attempt to perform these duties in the morning before their first scheduled inspection, between inspections, during their lunch break, or in the evening after the inspection day is over, but with so many interruptions it is difficult for them to accomplish many of these duties. The firefighter's schedules are such that they only work one or two weekdays per week so it is imperative they make contact with outside contacts and vendors during those weekday hours. The graphic below places the work and time in chart form. On average there is 2.75 hours of additional work than there are hours in a normal workday. This creates pressure on the inspectors and office to complete inspections based on speed rather than quality and the program as a whole suffers. "01 IRS AVAILABLE IN INSPECTION DAY 9 10M HOURS OF WORK IN INSPECTION DAY .. —W Daily truck and equipment checks, emails, vendors etc. I r' LUNCH & BREAKS EMERGENCY CALLS Average 4 per weekday @ 27 - 28 minutes per call. SCHEDULED RE- INSPECTIONS & MISC. INSPECTIONS Average 11 ptv day @ 15 m[nc,tes each SCHEDULED INSPECTIONS Average 11 per day @ half hour each Figure 5 Hours Available vs Hours of Work ,r 111 P a g e Note that inspections of buildings of more than four units are scheduled for a minimum of one hour, and additional time is required for very large buildings. Public Education events and tours are scheduled in blocks of one half an hour plus travel and preparation time. These activities are interwoven into the inspection schedule and further reduce the time available for inspections. The current hectic inspections schedule and increase in call volume has forced the department to be reactive towards prevention efforts, placing several vital components of a Comprehensive Fire Prevention Program on the "back burner". Most people understand that preventing emergencies is the most cost effective way to deal with them. However, few in our modern industrialized society place much emphasis on prevention. Attention is usually focused elsewhere, until a catastrophic event has already occurred and requires emergency response. Then attempts at prevention are too late. A Comprehensive Prevention Program is a combination of loss- control strategies designed to produce results in reducing risk or losses in any given community. All good programs start with engineering and safety solutions, such as plan review of new construction for water supply, fire department access, and fixed protection systems. Comprehensive prevention programs also include enforcement efforts, such as a well- designed fire inspection program that ensures code compliance. Another essential element of a good program includes developing partnerships with community entities to create, fund, and present educational activities that are well designed to reach the public through the school system or by other targeted means. In addition, an adequate fire investigation program helps guide the development of effective prevention strategies by providing information necessary to target prevention efforts appropriately. Comprehensive programs also include efforts to help control the problem of arson 8. The Fire Department has long been good at documentation of incidents and inspections in the City but has traditionally lacked the staff time to conduct a Comprehensive Risk Assessment of the city. A Comprehensive Risk Assessment consists of an analysis of historical data to identify and prioritize the hazards present in the City. Nor has the Department had the staff time to develop programs, train educators, implement the programs, or evaluate the effectiveness of programs based on the identified hazards. Currently, the fire prevention education being taught in the elementary schools is based on the 2009 "Staying Alive Inc." curriculum and has never been evaluated by our department to determine if it is effective or not. A Comprehensive Fire Prevention Program is a cyclical process where each step determines the actions in the next step, which eventually leads back and supports the first step. The lack of staffing and time to address the fire prevention cycle has created several gaps in the fire prevention process that leaves the city and its citizens vulnerable to hazards and risks. 8 Fire Prevention Organization and Management (James Crawford, 2011) 12 1 P a g e THE FINANCIAL PIECE All things in government come with a price. Staffing is no exception. Minnesota, despite being the 21St most populous state and 12th largest in area, ranks 45th in the nation in per household ($218) fire service spending. In comparison, per the Minnesota Center for Fiscal Excellence, Minnesota ranked 3`d in Public Welfare ($16,111 per person at /below 150% of poverty level), 17th in spending for Police Pli UC WELFTRE Protection ($890 per household3) and rdi 18th on education spending ($13,070 per pupil)9. Columbia Heights residents in in nation in spending per person at /below 150'/ poverty level that same year spent $168 for fire EDUCdTIOM 8th in nation in spending per pupil POLICE PROTECHON :- I7th in nation in spending per household 45 l ii in nation in spending per household MIA: I. � =890 Figure 6 How Columbia Heights Compares using 2015 (Most recent data available) $22 $ I 0 service spending and $22 on PMC inspection spending for a total of $190 per household on the fire department. In comparison, Columbia Heights residents spent $502 per household for Police protection. The majority of fire department's budget, like other departments in the City, is spent on staffing. At this time, a portion of the full -time firefighter p- ositions are being supported by PMC inspection budget dollars. This is unusual in the fact that the City would need the firefighting staffing regardless of its involvement with the PMC inspection program. It has been a financial boon that the taxpayers has been able to save money on its fire protection by having the City support the fire department suppression staffing with Property Maintenance funds but it makes sense to fully fund the current fire department suppression staffing level so that it is self - sufficient. In the scenario of removing PMC inspections from the fire department, the loss of the PMC supportive funding will leave a gap in funding for the current fire 9 How Does Minnesota Compare? (Minnesota Center for Fiscal Excellence, 2017) Retrieved from www.fiscalexcellence.org 13 1 P a g e suppression staff. Summarily, it is reasonable to expect the City to fully fund its fire protection and not rely on a separate program's funding to subsidize staffing for an essential service they are obligated to provide. As mentioned previously, the full time staff works many hours of overtime to cover for other firefighters who are off duty due to compensatory, vacation, or sick leave. The graphic below illustrates the amount of shift coverage overtime spent during weekday hours: M&-VI, RTIME COSTS FOR COVERAGE " `� V u ZQ 16 OCY NOV 0'Ef U v 20 17 AIJG 3EP OCT N6V R7E AN FEB MAR APR MAY 11JM Sili AUG SEP AN kF.O MAii APR MAY JIIN 11J 1. Figure 7 Overtime costs for past three years. The amounts above illustrate the benefit of having the additional staffing during the week, which reduces the amount of overtime coverage by approximately one half. Annually, the Fire Department produces revenue from the following four sources: Multiple Dwellings. Revenue generated trom Property Maintenance Code related activities such as rental license fees, re- inspection fees, and late fees. State Fire Training. This revenue comes in the form of reimbursements from the Minnesota Board of Firefighter Training and Education (MBFTE) for fire training, certification classes, schools and conferences and from the Emergency Medical Services Regulatory Board (EMSRB) for revenue to assist with maintaining our EMS training and certifications. This amount varies each year depending on allocated funding from the State. 14 1 P a g e Special Fire Services. This line of revenue is from fire department activities and services such as recreational fire permit fees and plan review fees. This revenue line also includes the City of Hilltop fire service contract, which is approximately $60,000 for the operational portion. Abatement Services. This revenue is generated from the administrative fees for abatement services and grass cutting. Over the past four years the Fire Department has averaged approximately $271,098.00 of annual revenue. The current staffing resources within the Fire Department are inadequate to manage the increase in demand for services. This increase in demand, especially in the areas of emergency response and inspection duties, coupled with a general decrease of staffing has pushed programs into a reactive state rather than a proactive one. The current staffing model is ineffective, costly in overtime, and affects the safety of our staff and citizens by placing additional physical and mental stressors on our staff. Staffing limitations have hampered the ability to perform an efficient and effective Comprehensive Risk assessment and create a proactive Fire Prevention program that improves the safety of our citizens. The City, in recognition of these deficiencies, has commissioned a staffing study that will look at this problem. However, the results of the study will come too late for the 2019 budget and levy cycle and any potential budgetary increases for additional personnel the study suggests will be pushed into the 15 1 P a g e DEPARTMENT FIRE REVENUE $350,000.00 $300,000.00 $750,382 04 - $255,9A2.71 $278;254.67 $299,81.2.07— $250,000.00 $200,000.00 - $150,000.00 $100,000.00 $50,000.00 � $0.00 — 2014 2015 2016 2017 Abatement Services $12,369.52 $10,600.00 $9,365.00 $8,610.00 Special Fire Services $74,077.92 $73,147.92 $78,095.72 $82,084.41 State Fire Training $6,949.60 $8,225.79 $7,200.00 $26,038.26 Multiple Dwellings $156,985.00 $163,969.00 $183,593.95 $183,079.40 TOTAL $250,382.04 $255,942.71 $278,254.67 $299,812.07 service contract, which is approximately $60,000 for the operational portion. Abatement Services. This revenue is generated from the administrative fees for abatement services and grass cutting. Over the past four years the Fire Department has averaged approximately $271,098.00 of annual revenue. The current staffing resources within the Fire Department are inadequate to manage the increase in demand for services. This increase in demand, especially in the areas of emergency response and inspection duties, coupled with a general decrease of staffing has pushed programs into a reactive state rather than a proactive one. The current staffing model is ineffective, costly in overtime, and affects the safety of our staff and citizens by placing additional physical and mental stressors on our staff. Staffing limitations have hampered the ability to perform an efficient and effective Comprehensive Risk assessment and create a proactive Fire Prevention program that improves the safety of our citizens. The City, in recognition of these deficiencies, has commissioned a staffing study that will look at this problem. However, the results of the study will come too late for the 2019 budget and levy cycle and any potential budgetary increases for additional personnel the study suggests will be pushed into the 15 1 P a g e 2020 budget cycle. This means that additional staffing, needed today, will not be able to be hired until 2020. 1 have a high level of confidence, based on current duties, call volume, national response standards, and national studies on fire and EMS response, that the staffing study will suggest an increase in staffing for the fire department. In an effort to redirect the fire department back onto a proactive path, I would respectfully request that the Council establishes an increase in funding for the 2019 Fire Department budget for the hire of two new permanent Full -time Firefighter positions and amend the Property Maintenance Clerk- Typist II position from part-time to full -time. The estimated cost of these positions, based on 2018 wages, is $85,000 for each firefighter and $41,000 for the additional Clerk- Typist II hours. This proposed increase in staffing will act as a stop gap until the City can develop and implement a long term staffing solution and will act as a stimulus to set the department back on to a more proactive path for its programs. 16 ., C' STUDY REFERENCES National Institute of Standards and Technology, "Landmark Residential Fire Study Shows How Crew Sizes and Arrival Times Influence Saving Lives and Property", 2010, htto: / /www.nist.eov /el /fire research /residential- fire - report 042810.cfm Averill, Jason D, Lori Moore - Merrell, Adam Barowy, et al., "NIST Technical Note 1661: Report on Residential Fireground Field Experiments," NIST, April 2010, https://www.iafc.orp,/files/`deptAdmin NISTde to mentRe_ ort. df Lori Moore - Merrell, Rob Santos, Doug Wissoker, Ron Benedict, Nicole Taylor, Randy Goldstein, Greg Mears, Jane Brice, Jason D. Averill, Kathy Notarianni, "NIST: Report in EMS Field Experiments ", September 2010 Cohen, Daniel A, Wei Wang, James K. Wyatt, et al. "Uncovering Residual Effects of Chronic Sleep Loss on Human Performance," Science Translational Medicine, Vol. 2, Issue 14, Jan 2010 National Volunteer Fire Council, "Volunteer Firefighter Recruitment and Retention Formative Research Results ", March 2015 U.S. Fire Administration, "Retention and Recruitment for the Volunteer Emergency Services: Challenges and Solutions ", FA- 310 /May 2007 17 1 P a g e